Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Feb. 22, 2022 | Jun. 30, 2021 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2021 | ||
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 Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 1,185,691,656 | ||
Entity Common Stock, Shares Outstanding | 32,152,367 | ||
Entity Central Index Key | 0000026058 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Auditor Name | GRANT THORNTONĀ LLP | ||
Auditor Firm ID | 248 | ||
Auditor Location | Chicago, Illinois | ||
Documents Incorporated by Reference | (1) Portions of the Proxy Statement to be filed for the annual meeting of shareholders to be held on or about May 12, 2022 are incorporated by reference in Part III. |
Consolidated Statements of (Los
Consolidated Statements of (Loss) Earnings - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Statement [Abstract] | |||
Net sales | $ 512,925 | $ 424,066 | $ 468,999 |
Cost of goods sold | 328,306 | 285,003 | 311,424 |
Gross margin | 184,619 | 139,063 | 157,575 |
Selling, general and administrative expenses | 82,597 | 67,787 | 70,408 |
Research and development expenses | 23,856 | 24,317 | 25,967 |
Restructuring charges | 1,687 | 1,830 | 7,448 |
Gain on sale of assets | 0 | 0 | (63) |
Operating earnings | 76,479 | 45,129 | 53,815 |
Other (expense) income: | |||
Interest expense | (2,111) | (3,272) | (2,648) |
Interest income | 840 | 1,047 | 1,737 |
Other (expense) income | (136,088) | 2,575 | (2,638) |
Total other (expense) income, net | (137,359) | 350 | (3,549) |
(Loss) earnings before taxes | (60,880) | 45,479 | 50,266 |
Income tax (benefit) expense | (19,014) | 10,793 | 14,120 |
Net (loss) earnings | $ (41,866) | $ 34,686 | $ 36,146 |
Net (loss) earnings per share: | |||
Basic | $ (1.30) | $ 1.07 | $ 1.11 |
Diluted | $ (1.30) | $ 1.06 | $ 1.09 |
Basic weighted-average common shares outstanding | 32,327 | 32,317 | 32,700 |
Effect of dilutive securities | 267 | 405 | |
Diluted weighted-average common shares outstanding | 32,327 | 32,584 | 33,105 |
Cash dividends declared per share | $ 0.16 | $ 0.16 | $ 0.16 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Earnings - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Net (loss) earnings | $ (41,866) | $ 34,686 | $ 36,146 |
Other comprehensive earnings (loss): | |||
Changes in fair market value of derivatives, net of tax | 311 | (1,307) | (509) |
Changes in unrealized pension cost, net of tax | 91,081 | (2,965) | 6,439 |
Cumulative translation adjustment, net of tax | 4 | 77 | 83 |
Other comprehensive earnings (loss) | 91,396 | (4,195) | 6,013 |
Comprehensive earnings | $ 49,530 | $ 30,491 | $ 42,159 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Current Assets | ||
Cash and cash equivalents | $ 141,465 | $ 91,773 |
Accounts receivable, net | 82,191 | 80,981 |
Inventories, net | 49,506 | 45,870 |
Other current assets | 15,927 | 14,607 |
Total current assets | 289,089 | 233,231 |
Property, plant and equipment, net | 96,876 | 97,437 |
Operating lease assets, net | 21,594 | 23,281 |
Other assets | ||
Prepaid pension asset | 49,382 | 56,642 |
Goodwill | 109,798 | 109,497 |
Other intangible assets, net | 69,888 | 79,121 |
Deferred income taxes | 25,415 | 24,250 |
Other assets | 2,420 | 2,590 |
Total other assets | 256,903 | 272,100 |
Total Assets | 664,462 | 626,049 |
Current Liabilities | ||
Accounts payable | 55,537 | 50,489 |
Operating lease obligations | 3,393 | 3,294 |
Accrued payroll and benefits | 18,418 | 12,978 |
Accrued expenses and other liabilities | 36,718 | 38,171 |
Total current liabilities | 114,066 | 104,932 |
Long-term debt | 50,000 | 54,600 |
Long-term operating lease obligations | 21,354 | 23,163 |
Long-term pension obligations | 6,886 | 7,466 |
Deferred income taxes | 5,894 | 7,010 |
Other long-term obligations | 2,684 | 5,196 |
Total Liabilities | 200,884 | 202,367 |
Commitments and Contingencies (Note 11) | ||
Shareholders' Equity | ||
Common stock | 314,620 | 311,190 |
Additional contributed capital | 42,549 | 41,654 |
Retained earnings | 492,242 | 539,281 |
Accumulated other comprehensive loss | (4,525) | (95,921) |
Total shareholders' equity before treasury stock | 844,886 | 796,204 |
Treasury stock | (381,308) | (372,522) |
Total shareholders' equity | 463,578 | 423,682 |
Total Liabilities and Shareholders' Equity | $ 664,462 | $ 626,049 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net (loss) earnings | $ (41,866) | $ 34,686 | $ 36,146 |
Adjustments to reconcile net (loss) earnings to net cash provided by operating activities: | |||
Depreciation and amortization | 26,930 | 26,670 | 24,619 |
Pensions and other post-retirement plan expense | 132,650 | 2,698 | 1,009 |
Stock-based compensation | 6,105 | 3,417 | 5,015 |
Asset impairment charges | 0 | 1,016 | 0 |
Restructuring non-cash charges | 0 | 300 | 1,704 |
Deferred income taxes | (30,982) | (2,048) | 2,413 |
Gain on sale of assets | 0 | 0 | (63) |
(Gain) loss on foreign current hedges, net of tax | (35) | (20) | 97 |
Changes in assets and liabilities, net of acquisitions: | |||
Accounts receivable | (928) | (343) | 3,784 |
Inventories | (3,570) | (578) | 4,371 |
Operating lease assets | 1,687 | 1,363 | (2,578) |
Other assets | (2,076) | 3,701 | (2,605) |
Accounts payable | 3,136 | 3,860 | (4,658) |
Accrued payroll and benefits | 5,023 | 2,518 | (5,940) |
Operating lease liabilities | (1,709) | (1,257) | 2,921 |
Accrued expenses and other liabilities | (7,937) | 1,056 | (1,543) |
Pension and other post-retirement plans | (287) | (256) | (287) |
Net cash provided by operating activities | 86,141 | 76,783 | 64,405 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Capital expenditures | (15,641) | (14,858) | (21,733) |
Proceeds from sale of assets | 0 | 0 | 137 |
Payments for acquisitions, net of cash acquired | (255) | (8,309) | (73,906) |
Net cash used in investing activities | (15,896) | (23,167) | (95,502) |
CASH FLOWS FROM FINANCING ACTVITIES: | |||
Payments of long-term debt | (808,800) | (3,792,550) | (1,885,800) |
Proceeds from borrowings of long-term debt | 804,200 | 3,747,450 | 1,935,500 |
Purchase of treasury stock | (8,786) | (8,080) | (11,746) |
Dividends paid | (5,173) | (5,179) | (5,238) |
Taxes paid on behalf of equity award participants | (1,503) | (1,917) | (2,657) |
Contingent consideration payments | (650) | (1,057) | 0 |
Net cash (used in) provided by financing activities | (20,712) | (61,333) | 30,059 |
Effect of exchange rate on cash and cash equivalents | 159 | (751) | 346 |
Net increase (decrease) in cash and cash equivalents | 49,692 | (8,468) | (692) |
Cash and cash equivalents at beginning of year | 91,773 | 100,241 | 100,933 |
Cash and cash equivalents at end of year | 141,465 | 91,773 | 100,241 |
Supplemental cash flow information: | |||
Cash paid for interest | 1,950 | 2,597 | 1,961 |
Cash paid for income taxes, net | 16,887 | 11,967 | 11,113 |
Capital expenditures incurred not paid | $ 2,348 | $ 729 | $ 4,077 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Contributed Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock |
Beginning Balance at Dec. 31, 2018 | $ 377,929 | $ 306,697 | $ 42,820 | $ 478,847 | $ (97,739) | $ (352,696) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net (loss) earnings | 36,146 | 36,146 | ||||
Changes in fair market value of derivatives, net of tax | (509) | (509) | ||||
Changes in unrealized pension cost, net of tax | 6,439 | 6,439 | ||||
Cumulative translation adjustment, net of tax | 83 | 83 | ||||
Cash dividends | (5,227) | (5,227) | ||||
Acquired shares for treasury stock | (11,746) | (11,746) | ||||
Issued shares on vesting of restricted stock units | (2,656) | 1,235 | (3,891) | |||
Stock compensation | 4,760 | 4,760 | ||||
Ending Balance at Dec. 31, 2019 | 405,219 | 307,932 | 43,689 | 509,766 | (91,726) | (364,442) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net (loss) earnings | 34,686 | 34,686 | ||||
Changes in fair market value of derivatives, net of tax | (1,307) | (1,307) | ||||
Changes in unrealized pension cost, net of tax | (2,965) | (2,965) | ||||
Cumulative translation adjustment, net of tax | 77 | 77 | ||||
Cash dividends | (5,171) | (5,171) | ||||
Acquired shares for treasury stock | (8,080) | (8,080) | ||||
Issued shares on vesting of restricted stock units | (1,917) | 3,258 | (5,175) | |||
Stock compensation | 3,140 | 3,140 | ||||
Ending 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 (loss) earnings | (41,866) | (41,866) | ||||
Changes in fair market value of derivatives, net of tax | 311 | 311 | ||||
Changes in unrealized pension cost, net of tax | 91,081 | 91,081 | ||||
Cumulative translation adjustment, net of tax | 4 | 4 | ||||
Cash dividends | (5,173) | (5,173) | ||||
Acquired shares for treasury stock | (8,786) | (8,786) | ||||
Issued shares on vesting of restricted stock units | (1,502) | 3,430 | (4,932) | |||
Stock compensation | 5,827 | 5,827 | ||||
Ending Balance at Dec. 31, 2021 | $ 463,578 | $ 314,620 | $ 42,549 | $ 492,242 | $ (4,525) | $ (381,308) |
Consolidated Statements of Sh_2
Consolidated Statements of Shareholders Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement Of Stockholders Equity [Abstract] | |||
Cash dividends declared per share | $ 0.16 | $ 0.16 | $ 0.16 |
Treasury stock, shares, acquired | 266,722 | 342,731 | 420,770 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | NOTE 1 ā Summary of Significant Accounting Policies Description of Business: CTS Corporation ("CTS", "we", "our", "us" or the "Company") is a global manufacturer of sensors, connectivity components, and actuators operating as a single reportable business segment. We operate manufacturing facilities located throughout North America, Asia and Europe and service major markets globally. Principles of Consolidation: The consolidated financial statements include the accounts of CTS and its wholly owned subsidiaries. All significant intercompany accounts and transactions have been eliminated. Use of Estimates: The preparation of financial statements in conformity with the accounting principles generally accepted in the United States of America ("U.S. GAAP") 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 reporting period. Actual results could differ materially from those estimates. Cash and Cash Equivalents: All highly liquid investments with maturities of three months or less at the date of purchase are considered to be cash equivalents. Accounts Receivable and Allowance for Credit Losses: Accounts receivable consists primarily of amounts due from normal business activities. We maintain an allowance for credit losses for estimated uncollectible accounts receivable. Our reserves for estimated credit losses are based upon historical experience, specific customer collection issues, current conditions and reasonable and supportable forecasts that affect the collectability of the remaining cash flows over the contractual terms of our receivables and other financial assets. Accounts are written off against the allowance account when they are determined to no longer be collectible. Concentration of Credit Risk: Financial instruments that potentially subject us to concentrations of credit risk consist of cash and cash equivalents and trade receivables. Our cash and cash equivalents, at times, may exceed federally insured limits. Cash and cash equivalents are deposited primarily in banking institutions with global operations. We have not experienced any losses in such accounts. We believe we are not exposed to any significant credit risk related to cash and cash equivalents. Trade receivables subject us to the potential for credit risk with major customers. We sell our products to customers principally in the aerospace and defense, industrial, medical, and transportation markets, primarily in North America, Europe, and Asia. We perform ongoing credit evaluations of our customers to minimize credit risk. We do not require collateral. The allowance for credit losses is based on management's estimates of the collectability of its accounts receivable after analyzing historical credit losses, customer concentrations, customer creditworthiness, current economic trends, specific customer collection issues, and reasonable and supportable forecasts that affect the collectability of the remaining cash flows over the contractual terms of our receivables. Uncollectible trade receivables are charged against the allowance for credit losses when all reasonable efforts to collect the amounts due have been exhausted. Our net sales to significant customers as a percentage of total net sales were as follows: Years Ended December 31, 2021 2020 2019 Cummins Inc. 15.0% 13.1% 16.1% Toyota Motor Corporation 12.4% 13.4% 11.6% We sell parts to these two transportation customers for certain vehicle platforms under purchase agreements that have no volume commitments and are subject to purchase orders issued on a periodic basis. No other customer accounted for 10% or more of total net sales during these periods. Inventories: We value our inventories at the lower of the actual cost to purchase or manufacture using the first-in, first-out ("FIFO") method, or net realizable value. We review inventory quantities on hand and record a provision for excess and obsolete inventory based on historical consumption trends as well as forecasts of product demand including related production requirements. Once reserves are established, write-downs of inventory are considered permanent adjustments to the cost basis of inventory. Our reserves contain uncertainties because the calculation requires management to make assumptions and to apply judgment regarding historical experience, market conditions, and product life cycles. Changes in actual demand or market conditions could adversely impact our reserve calculations. Retirement Plans: We have various defined benefit and defined contribution retirement plans. Our policy is to annually fund the defined benefit pension plans at or above the minimum required by law. We: 1) recognize the funded status of a benefit plan (measured as the difference between plan assets at fair value and the projected benefit obligation) in our Consolidated Balance Sheets; 2) recognize the gains or losses and prior service costs or credits that arise during the period but are not recognized as components of net periodic benefit/cost as a component of other comprehensive earnings; and 3) measure defined benefit plan assets and obligations as of the date of our fiscal year-end. During 2020, the Company commenced the termination process for its primary U.S. Pension Plan (āU.S. Planā) and expects to complete the termination process in the first half of 2022. See Note 7, "Retirement Plans" for further information. Property, Plant and Equipment: Property, plant and equipment is stated at cost, less accumulated depreciation. Depreciation is computed primarily over the estimated useful lives of the various classes of assets using the straight-line method. Useful lives for buildings and improvements range from 10 to 45 years, machinery and equipment from 3 to 15 years, and software from 2 to 15 years. Depreciation on leasehold improvements is computed over the lesser of the lease term or estimated useful lives of the assets. Amounts expended for maintenance and repairs are charged to expense as incurred. Major overhauls that extend the useful lives of existing assets are capitalized. Upon disposition, any related gains or losses are included in operating earnings Income Taxes: We account for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, we determine deferred tax assets and liabilities on the basis of the differences between the financial statement and tax bases of assets and liabilities by using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. We recognize deferred tax assets to the extent that we believe that these assets are more-likely-than-not to be realized. In making such a determination, we consider all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. If we determine that we would be able to realize our deferred tax assets in the future in excess of their net recorded amount, we would make an adjustment to the deferred tax asset valuation allowance, which would reduce the provision for income taxes. We record uncertain tax positions in accordance with Accounting Standards Codification ("ASC") Topic 740 on the basis of a two-step process in which (1) we determine whether it is more-likely-than-not that the tax positions will be sustained on the basis of the technical merits of the position and (2) for those tax positions that meet the more-likely-than-not recognition threshold, we recognize the largest amount of tax benefit that is more than 50 percent likely to be realized upon ultimate settlement with the related tax authority. We recognize interest and penalties related to unrecognized tax benefits on the income tax expense line in the accompanying Consolidated Statements of (Loss) Earnings. Accrued interest and penalties are included in the related tax liability line in the Consolidated Balance Sheets. See Note 19, "Income Taxes" for further information. Goodwill and Indefinite-lived Intangible Assets: Goodwill represents the excess of the purchase price over the fair values of the net assets acquired in a business combination. In accordance with ASC 350, IntangiblesāGoodwill and Other , goodwill is not amortized, but instead is tested for impairment annually or more frequently if circumstances indicate a possible impairment may exist. Absent any interim indicators of impairment, the Company tests for goodwill impairment as of the first day of its fourth fiscal quarter of each year. Based upon our latest assessment, we determined that our goodwill was not impaired as of October 1, 2021. In addition to goodwill, we also had an acquired in-process research and development ("IPR&D") intangible asset that was treated as indefinite-lived intangible assets and therefore was not subject to amortization until the completion or abandonment of the associated research and development efforts. In the third quarter of 2020, due to the restructuring actions further outlined in Note 9, we identified a triggering event associated with a specific asset group including IPR&D due to executed restructuring actions. This resulted in the recognition of $2,200 of impairment charges, and a revaluation of associated contingent liabilities totaling $1,900. The net impact of $300 was recorded as restructuring charges in the Consolidated Statements of (Loss) Earnings in 2020. Other Intangible Assets and Long-lived Assets: We account for long-lived assets (excluding indefinite-lived intangible assets) in accordance with the provisions of ASC 360, Property, Plant, and Equipment . This statement requires that long-lived assets, which includes fixed assets and finite-lived intangible assets, be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If an impairment test is warranted, recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the sum of the undiscounted cash flows expected to result from the use and the eventual disposition of the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount in which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell. In 2020, w e recorded a charge of $ 1,016 due to the impairment of a specific asset group that was recorded in selling, general and administrative expenses in the Consolidated Statements of (Loss) Earnings. Intangible assets (excluding indefinite-lived intangible assets) consist primarily of technology, customer lists and relationships, patents, and trade names. These assets are recorded at cost and usually amortized on a straight-line basis over their estimated lives. We assess useful lives based on the period over which the asset is expected to contribute to cash flows. Revenue Recognition: Product revenue is recognized upon the transfer of promised goods to a customer in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods net of reserves. We follow the five step model to determine when this transfer has occurred: 1) identify the contract(s) with the customer; 2) identify the performance obligations in the contract; 3) determine the transaction price; 4) allocate the transaction price to the performance obligations in the contract; 5) recognize revenue when (or as) the entity satisfies a performance obligation. Our revenue reserves contain uncertainties because they require management to make assumptions and to apply judgment to estimate the value of future credits to customers for product returns, price adjustments, and stock rotation adjustments. We base these estimates on the most likely value method considering all reasonably available information, including our historical experience and current expectations, and are reflected in the transaction price when sales are recorded. Research and Development: Research and development ("R&D") costs include expenditures for search and investigation aimed at discovery of new knowledge to be used to develop new products or processes or to significantly enhance existing products or production processes. R&D costs also include the implementation of new knowledge through design, testing of product alternatives, or construction of prototypes. We expense all R&D costs as incurred, net of customer reimbursements for sales of prototypes and non-recurring engineering charges. We create prototypes and tools related to R&D projects. A prototype is defined as a constructed product not intended for production resulting in a commercial sale. We also incur engineering costs related to R&D activities. Such costs are incurred to support such activities to improve the reliability, performance and cost-effectiveness of our existing products and to design and develop innovative products that meet customer requirements for new applications. Furthermore, we may engage in activities that develop tooling machinery and equipment for our customers. We occasionally enter into agreements with our customers whereby we receive a contractual guarantee based on achieving milestones to be reimbursed the costs we incur in the product development process or to construct molds, dies, and other tools that are used to make many of the products we sell. The costs we incur are included in other current assets on the Consolidated Balance Sheets until reimbursement is received from the customer. Reimbursements received from customers are netted against such costs and included in our Consolidated Statements of (Loss) Earnings if the amount received is in excess of the costs that we incur. The following is a summary of amounts to be received from customers as of December 31, 2021 and 2020: As of December 31, 2021 2020 Cost of molds, dies and other tools included in other current assets $ 4,497 $ 4,895 Financial Instruments: We use forward contracts to mitigate currency risk related to forecasted foreign currency revenue and costs. These forward contracts are designed as cash flow hedges. At least quarterly, we assess the effectiveness of these hedging relationships based on the total change in their fair value using regression analysis. In addition, we use interest rate swaps to convert a portion of our revolving credit facility's variable rate of interest into a fixed rate. As a result of the use of these derivative instruments, the Company is exposed to the risk that counterparties to derivative contracts will fail to meet their contractual obligations. To mitigate the counterparty credit risk, the Company has a policy of only entering into contracts with carefully selected major financial institutions based upon their credit ratings and other factors and by using netting agreements. Our established policies and procedures for mitigating credit risk on principal transactions include reviewing and establishing limits for credit exposure and continually assessing the creditworthiness of counterparties. We estimate the fair value of our financial instruments as follows: Instrument Method for determining fair value Cash, cash equivalents, accounts receivable and accounts payable Cost, approximates fair value due to the short-term nature of these instruments. Revolving credit facility 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 credit facility. Interest rate swaps and forward contracts The fair value of our interest rate swaps and forward contracts are measured using a market approach which uses current industry information. Debt Issuance Costs: We have debt issuance costs related to our long-term debt that are being amortized using the straight-line method over the term of the debt. Stock-Based Compensation: We recognize expense related to the fair value of stock-based compensation awards, consisting of restricted stock units ("RSUs"), cash-settled restricted stock units, performance share units ("PSUs"), and stock options, in the Consolidated Statements of (Loss) Earnings. We estimate the fair value of stock option awards on the date of grant using the Black-Scholes option pricing model. A number of assumptions are used by the Black-Scholes option pricing model to compute the grant date fair value of an award, including expected price volatility, option term, risk-free interest rate, and dividend yield. These assumptions are established at each grant date based upon current information at that time. Expected volatilities are based on historical volatilities of CTS common stock. The expected option term is derived from historical data of exercise behavior. Actual option terms can differ from the expected option terms as a result of different groups of employees exhibiting different exercise behavior. The dividend yield is based on historical dividend payments. The risk-free rate for periods within the contractual life of the option is based on the U.S. Treasury yield curve at the time of grant. The fair value of awards that are ultimately expected to vest is recognized as expense over the requisite service periods of the awards in the Consolidated Statements of (Loss) Earnings. The grant date fair values of our service-based and performance-based RSUs are the closing price of our common stock on the date of grant. The grant date fair value of our market-based RSUs is determined by using a simulation, or Monte Carlo, approach. Under this approach, stock returns from a comparative group of companies are simulated over the performance period, considering both stock price volatility and the correlation of returns. The simulated results are then used to estimate the future payout based on the performance and payout relationship established by the conditions of the award. The future payout is discounted to the measurement date using the risk-free interest rate. Both our stock option and RSU awards primarily have a graded vesting schedule. 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. Compensation expense for PSUs is measured by determining the fair value of the award using the closing share price on the grant date and is recognized ratably from the grant date to the vesting date for the number of awards expected to vest. The amount of compensation expense recognized for PSUs is dependent upon a quarterly assessment of the likelihood of achieving the performance conditions and is subject to adjustment based on management's assessment of the Company's performance relative to the target number of shares performance criteria. Forfeitures are recorded as they occur. See Note 17, "Stock-Based Compensation" for further information. (Loss) Basic (loss) earnings per share excludes any dilution and is computed by dividing net (loss) earnings available to common shareholders by the weighted-average number of common shares outstanding for the period. Diluted earnings per share is calculated by dividing net earnings by the weighted average shares outstanding assuming dilution. Dilutive common shares outstanding is computed using the Treasury Stock Method and reflects the additional shares that would be outstanding if dilutive stock options were exercised, and restricted stock units were settled for common shares during the period. In addition, dilutive shares include any shares issuable related to performance share units for which the performance conditions would have been met as of the end of the period and therefore would be considered contingently issuable. If the common stock equivalents have an anti-dilutive effect, they are excluded from the computation of diluted earnings per share. There was no anti-dilutive impact for the year ended December 31, 2021 as result of a net loss incurred in the period. If there is a net loss for the period, then basic (loss) earnings per share equals diluted (loss) earnings per share. Our antidilutive securities consist of the following: Years Ended December 31, (units) 2021 2020 2019 Antidilutive securities ā 26,140 22,040 Foreign Currencies: The financial statements of our non-U.S. subsidiaries, except the United Kingdom ("U.K.") subsidiary, are remeasured into U.S. dollars using the U.S. dollar as the functional currency with all remeasurement adjustments included in the determination of net (loss) earnings. Foreign currency (losses) gains recorded in the Consolidated Statements of (Loss) Earnings includes the following: Years Ended December 31, 2021 2020 2019 Foreign currency (losses) gains $ (3,305 ) $ 5,316 $ (1,797 ) The assets and liabilities of our U.K. subsidiary are translated into U.S. dollars at the current exchange rate at period end, with the resulting translation adjustments made directly to the "accumulated other comprehensive loss" component of shareholders' equity. Our Consolidated Statements of (Loss) Earnings accounts are translated at the average rates during the period. Shipping and Handling: All fees billed to the customer for shipping and handling are classified as a component of net sales. All costs associated with shipping and handling are classified as a component of cost of goods sold or operating expenses, depending on the nature of the underlying purchase. Sales Taxes: When applicable, we classify sales taxes on a net basis in our consolidated financial statements. Reclassifications: 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. Accounting Pronouncements Recently Adopted ASU No. 2020-04, "Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting" In March 2020, the Financial Accounting Standards Board (āFASBā) issued Accounting Standards Update (āASUā) 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting , which provides temporary optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting as it relates to our LIBOR indexed instruments. ASU 2020-04 provides optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. ASU 2020-04 is effective for all entities as of March 12, 2020 through December 31, 2022, and an entity may elect to apply ASU 2020-04 for contract modifications by Topic or Industry Subtopic as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020, or prospectively from a date within an interim period that includes or is subsequent to March 12, 2020, up to the date that the financial statements are available to be issued. We amended and restated our credit and underlying interest rate swap agreements effective December 15, 2021. We have elected to continue to apply hedge accounting as we have determined that the hedge remains effective. See Note 13 for further discussion of the credit agreement modification. ASU No. 2019-12, "Simplifying the Accounting for Income Taxes" In December 2019, the FASB issued ASU 2019-12, Simplifying the Accounting for Income Taxes , as part of its simplification initiative to reduce the cost and complexity in accounting for income taxes. ASU 2019-12 removes certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period, and the recognition of deferred tax liabilities for outside basis differences. ASU 2019-12 also amends other aspects of the guidance to help simplify and promote consistent application of U.S. GAAP. The guidance is effective for interim and annual periods beginning after December 15, 2020, with early adoption permitted. We adopted this ASU on January 1, 2021 and it did not have a material impact on our financial statements. |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Dec. 31, 2021 | |
Revenue From Contract With Customer [Abstract] | |
Revenue Recognition | NOTE 2 ā Revenue Recognition The core principle of ASC 606 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: ā¢ Identify the contract(s) with a customer ā¢ Identify the performance obligations ā¢ Determine the transaction price ā¢ Allocate the transaction price ā¢ 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 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. 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 value method based on an analysis of historical experience and current facts and circumstances, which may require 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: Years Ended December 31, 2021 2020 Transportation $ 284,080 $ 241,445 Industrial 133,371 104,224 Medical 48,159 39,070 Aerospace & Defense 47,315 39,327 Total $ 512,925 $ 424,066 |
Business Acquisitions
Business Acquisitions | 12 Months Ended |
Dec. 31, 2021 | |
Business Combinations [Abstract] | |
Business Acquisitions | NOTE 3 - Business Acquisitions Sensor Scientific, Inc. On December 30, 2020, we acquired 100% of the outstanding shares of Sensor Scientific, Inc. (āSSIā). SSI is a manufacturer of high-quality thermistors and temperature sensor assemblies serving original equipment manufacturers (āOEMsā) for applications that require precision and reliability in the medical, industrial and defense markets. SSI has complementary capabilities with our existing temperature sensing platform and the acquisition expands our presence in the medical and industrial end markets. It also provides high quality ceramic processing capabilities and valuable customer partnerships that expand our temperature sensing product portfolio and build on our strategy to focus on innovative products that sense, connect and move. The final purchase price, which includes changes in working capital, of $10,221 has been allocated to the fair values of assets and liabilities acquired as of December 30, 2020. The following table summarizes the consideration paid and the fair values of the assets acquired, and the liabilities assumed at the date of acquisition: Consideration Paid Cash paid, net of cash acquired of $470 $ 8,221 Contingent consideration 2,000 Purchase price $ 10,221 Fair Values at December 30, 2020 Current assets $ 2,551 Property, plant and equipment 67 Other assets 14 Goodwill 3,321 Intangible assets 5,340 Fair value of assets acquired 11,293 Less fair value of liabilities acquired (1,072 ) Purchase price $ 10,221 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. All contingent consideration is payable in cash and is based on success factors related to the integration process as well as upon the achievement of a revenue performance target through the year ending December 31, 2022. The Company recorded $2,000 as the acquisition date fair value of the contingent consideration based on an estimate of the probability of achieving the performance target This amount is also reflected as an addition to the purchase price and will be evaluated quarterly. Refer to Note 18 for further information on contingent consideration. The following table summarizes the carrying amounts and weighted average lives of the acquired intangible assets: Carrying Value Weighted Average Amortization Period Customer lists/relationships $ 5,200 11.0 Trademarks, tradenames, and other intangibles 140 3.0 Total $ 5,340 Quality Thermistor, Inc. On July 31, 2019, we acquired 100% of the outstanding shares of Quality Thermistor, Inc. (āQTIā) for $75 million plus a contingent earn out of up to $5 million based on sales performance objectives. The purchase price includes adjustments for debt assumed and changes in working capital. QTI, doing business as QTI Sensing Solutions, is a leading designer and manufacturer of high-quality temperature sensors serving original equipment manufacturers with mission-critical applications in the industrial, aerospace, defense and medical markets. This acquisition provides us with a new core temperature sensing technology that expands our sensing product portfolio, while increasing our presence in the industrial and medical markets. The final purchase price of $73,906 has been allocated to the fair values of assets and liabilities acquired as of July 31, 2019. The following table summarizes the consideration paid and the fair values of the assets acquired, and the liabilities assumed at the date of acquisition : Consideration Paid Cash paid, net of cash acquired of $567 $ 72,850 Contingent consideration 1,056 Purchase price $ 73,906 Fair Values at July 31, 2019 Current assets $ 6,221 Property, plant and equipment 2,567 Other assets 29 Goodwill 34,999 Intangible assets 32,800 Fair value of assets acquired 76,616 Less fair value of liabilities acquired (2,710 ) Purchase price $ 73,906 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 within our existing business, access to new customers, and potential cost savings and synergies. Goodwill related to the acquisition is expected to be deductible for tax purposes. The contingent earn-out was payable in cash upon the achievement of a revenue performance target for the year ending December 31, 2019. The Company recorded contingent consideration for the earn out of $1,056 as of December 31, 2019 based on the achievement of the revenue performance target for the full year 2019 results and the balance was paid out in the first quarter of 2020. This amount was reflected as an addition to purchase price and was settled in the first quarter of 2020. The following table summarizes the carrying amounts and weighted average lives of the acquired intangible assets: Carrying Value Weighted Average Amortization Period Customer lists/relationships $ 31,000 15.0 Trademarks, tradenames, and other intangibles 1,800 5.0 Total $ 32,800 Results of operations for QTI are included in our consolidated financial statements beginning on July 31, 2019. The amount of net sales and net loss from QTI since the acquisition date that have been included in the Consolidated Statements of (Loss) Earnings are as follows: For the period July 31, 2019 through December 31, 2019 Net sales $ 9,252 Net loss $ (465 ) |
Accounts Receivable, Net
Accounts Receivable, Net | 12 Months Ended |
Dec. 31, 2021 | |
Receivables [Abstract] | |
Accounts Receivable, Net | NOTE 4 ā Accounts Receivable, net The components of accounts receivable, net are as follows: As of December 31, 2021 2020 Accounts receivable, gross $ 83,848 $ 81,745 Less: Allowance for credit losses (1,657 ) (764 ) Accounts receivable, net $ 82,191 $ 80,981 |
Inventories, Net
Inventories, Net | 12 Months Ended |
Dec. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories, Net | NOTE 5 ā Inventories, net Inventories, net consist of the following: As of December 31, 2021 2020 Finished goods $ 11,955 $ 10,647 Work-in-process 18,878 16,927 Raw materials 28,078 24,893 Less: Inventory reserves (9,405 ) (6,597 ) Inventories, net $ 49,506 $ 45,870 |
Property, Plant and Equipment,
Property, Plant and Equipment, Net | 12 Months Ended |
Dec. 31, 2021 | |
Property Plant And Equipment [Abstract] | |
Property, Plant and Equipment, Net | NOTE 6 ā Property, Plant and Equipment, net Property, plant and equipment, net is comprised of the following: As of December 31, 2021 2020 Land and land improvements $ 1,095 $ 1,095 Buildings and improvements 69,614 69,360 Machinery and equipment 247,708 233,743 Less: Accumulated depreciation (221,541 ) (206,761 ) Property, plant and equipment, net $ 96,876 $ 97,437 Depreciation expense recorded in the Consolidated Statements of (Loss) Earnings includes the following: For the Years Ended 2021 2020 2019 Depreciation expense $ 17,517 $ 17,615 $ 16,849 |
Retirement Plans
Retirement Plans | 12 Months Ended |
Dec. 31, 2021 | |
Compensation And Retirement Disclosure [Abstract] | |
Retirement Plans | NOTE 7 ā Retirement Plans We have 2 active noncontributory defined benefit pension plans ("pension plans") covering less than 1% of our active employees. Pension plans covering salaried employees provide pension benefits that are based on the employeesĀ“ years of service and compensation prior to retirement. Pension plans covering hourly employees generally provide benefits of stated amounts for each year of service. All benefits for the U.S.-based pension plan were frozen in 2017 and 2013 for union and non-union employees, respectively. We also provide post-retirement life insurance benefits for certain retired employees. Domestic employees who were hired prior to 1982 and certain former union employees are eligible for life insurance benefits upon retirement. We fund life insurance benefits through term life insurance policies and intend to continue funding all of the premiums on a pay-as-you-go basis. We recognize the funded status of a benefit plan in our consolidated balance sheets. The funded status is measured as the difference between plan assets at fair value and the projected benefit obligation. We also recognize, as a component of other comprehensive earnings, net of tax, the gains or losses and prior service costs or credits that arise during the period but are not recognized as components of net periodic benefit/cost. The measurement dates for the pension plans for our U.S. and non-U.S. locations were December 31, 2021, and 2020. In February 2020, the CTS 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 participants elected to receive the settlement, and lump sum payments of approximately $ 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 (Loss) 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 (āTransferred Participantsā). 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 Consolidated Statements of (Loss) Earnings. In January 2022, we transferred approximately $17,500 of funds from Plan assets to a qualified replacement plan (QRP) managed by the Company. This plan requires that these assets be used to fund future annual Company contributions to our U.S. 401(k) program. The Plan assets of $49,382 as of December 31, 2021, net of the $17,500 noted above, will remain in the Plan until final administrative tasks are completed. This process is expected to be completed in the first half of 2022, whereby the remaining Plan assets will liquidate and revert to CTS. At that time, the funds will be subject to income and excise taxes. The following table provides a reconciliation of benefit obligation, plan assets, and the funded status of the pension plans for U.S. and non-U.S. locations at the measurement dates. U.S. Pension Plans Non-U.S. Pension Plans 2021 2020 2021 2020 Accumulated benefit obligation $ 1,008 $ 230,205 $ 1,957 $ 1,983 Change in projected benefit obligation: Projected benefit obligation at January 1 $ 230,205 $ 220,339 $ 2,686 $ 2,633 Service cost ā ā 26 31 Interest cost 2,861 5,773 17 28 Benefits paid (12,206 ) (14,590 ) (476 ) (285 ) Actuarial (gain) loss (3,533 ) 18,683 44 95 Plan settlements (216,319 ) ā ā ā Foreign exchange impact ā ā 38 184 Projected benefit obligation at December 31 $ 1,008 $ 230,205 $ 2,335 $ 2,686 Change in plan assets: Assets at fair value at January 1 $ 285,675 $ 281,276 $ 1,595 $ 1,419 Actual return on assets (7,967 ) 18,886 28 95 Company contributions 199 103 252 268 Benefits paid (12,206 ) (14,590 ) (476 ) (285 ) Plan settlements (216,319 ) ā ā ā Foreign exchange impact ā ā 22 98 Assets at fair value at December 31 $ 49,382 $ 285,675 $ 1,421 $ 1,595 Funded status (plan assets less projected benefit obligations) $ 48,374 $ 55,470 $ (914 ) $ (1,091 ) * Actual return on plan assets is net of expected investment expenses and certain administrative expenses. The measurement dates for the post-retirement life insurance plan were December 31, 2021, and 2020. The following table provides a reconciliation of benefit obligation, plan assets, and the funded status of the post-retirement life insurance plan at those measurement dates. Post-Retirement Life Insurance Plan 2021 2020 Accumulated benefit obligation $ 5,231 $ 5,376 Change in projected benefit obligation: Projected benefit obligation at January 1 $ 5,376 $ 4,766 Service cost 1 1 Interest cost 80 122 Benefits paid (151 ) (154 ) Actuarial (gain) loss (75 ) 641 Projected benefit obligation at December 31 $ 5,231 $ 5,376 Change in plan assets: Assets at fair value at January 1 $ ā $ ā Actual return on assets ā ā Company contributions 151 154 Benefits paid (151 ) (154 ) Other ā ā Assets at fair value at December 31 $ ā $ ā Funded status (plan assets less projected benefit obligations) $ (5,231 ) $ (5,376 ) The components of the prepaid (accrued) cost of the domestic and foreign pension plans are classified in the following lines in the Consolidated Balance Sheets at December 31: U.S. Pension Plans Non-U.S. Pension Plans 2021 2020 2021 2020 Prepaid pension asset $ 49,382 $ 56,642 $ ā $ ā Accrued expenses and other liabilities (100 ) (100 ) ā ā Long-term pension obligations (908 ) (1,072 ) (914 ) (1,091 ) Net prepaid (accrued) cost $ 48,374 $ 55,470 $ (914 ) $ (1,091 ) The components of the accrued cost of the post-retirement life insurance plan are classified in the following lines in the Consolidated Balance Sheets at December 31: Post-Retirement Life Insurance Plan 2021 2020 Accrued expenses and other liabilities $ (489 ) $ (451 ) Long-term pension obligations (4,742 ) (4,924 ) Total accrued cost $ (5,231 ) $ (5,375 ) We have also recorded the following amounts to accumulated other comprehensive loss for the U.S. and non-U.S. pension plans, net of tax: U.S. Pension Plans Non-U.S. Pension Plans Unrecognized Loss Unrecognized Loss Balance at January 1, 2020 $ 88,830 $ 1,900 Amortization of retirement benefits, net of tax (4,995 ) (146 ) Net actuarial gain 7,402 14 Foreign exchange impact ā 133 Balance at January 1, 2021 $ 91,237 $ 1,901 Amortization of retirement benefits, net of tax (2,851 ) (152 ) Net actuarial gain (loss) 3,777 27 Settlement charges (91,851 ) ā Foreign exchange impact ā 27 Balance at December 31, 2021 $ 312 $ 1,803 We have recorded the following amounts to accumulated other comprehensive loss for the post-retirement life insurance plan, net of tax: Unrecognized Gain Balance at January 1, 2020 $ (608 ) Amortization of retirement benefits, net of tax 64 Net actuarial gain 493 Balance at January 1, 2021 $ (51 ) Amortization of retirement benefits, net of tax 0 Net actuarial loss (58 ) Balance at December 31, 2021 $ (109 ) The accumulated actuarial gains and losses included in other comprehensive earnings are amortized in the following manner: The component of unamortized net gains or losses related to our qualified pension plans is amortized based on the expected future life expectancy of the plan participants (estimated to be approximately 14 years at December 31, 2021), because substantially all of the participants in those plans are inactive. The component of unamortized net gains or losses related to our post-retirement life insurance plan is amortized based on the estimated remaining future service period of the plan participants (estimated to be approximately 3 years at December 31, 2021). The Company uses a market-related approach to value plan assets, reflecting changes in the fair value of plan assets over a five-year The projected benefit obligation, accumulated benefit obligation and fair value of plan assets for those pension plans with accumulated benefit obligation in excess of fair value of plan assets is shown below: As of December 31, 2021 2020 Projected benefit obligation $ 3,343 $ 3,859 Accumulated benefit obligation $ 2,965 $ 3,155 Fair value of plan assets $ 1,421 $ 1,595 Net pension expense includes the following components: Years Ended December 31, Years Ended December 31, U.S. Pension Plans Non-U.S. Pension Plans 2021 2020 2019 2021 2020 2019 Service cost $ ā $ ā $ ā $ 26 $ 31 $ 37 Interest cost 2,861 5,773 7,724 17 28 31 Expected return on plan assets (1) (474 ) (9,817 ) (12,187 ) (17 ) (16 ) (17 ) Amortization of unrecognized loss 3,703 6,488 5,246 184 174 170 Settlement charges 126,269 ā ā ā ā ā Net expense $ 132,359 $ 2,444 $ 783 $ 210 $ 217 $ 221 Weighted-average actuarial assumptions (2) Benefit obligation assumptions: Discount rate 2.46 % 2.26 % 3.15 % 0.63 % 0.63 % 1.00 % Rate of compensation increase N/A N/A N/A 3.00 % 3.00 % 3.00 % Pension income/expense assumptions: Discount rate 2.10 % 3.15 % 4.30 % 0.63 % 0.63 % 1.13 % Expected return on plan assets (1) 1.44 % 3.76 % 4.61 % 0.63 % 0.63 % 1.13 % Rate of compensation increase N/A N/A N/A 3.00 % 3.00 % 3.00 % (1) Expected return on plan assets is net of expected investment expenses and certain administrative expenses. (2) During the fourth quarter of each year, we review our actuarial assumptions in light of current economic factors to determine if the assumptions need to be adjusted. 2020 assumptions reflect termination basis accounting. Net post-retirement expense includes the following components: Post-Retirement Life Insurance Plan Years Ended December 31, 2021 2020 2019 Service cost $ 1 $ 1 $ 1 Interest cost 80 122 170 Amortization of unrecognized gain ā (84 ) (166 ) Net expense $ 81 $ 39 $ 5 Weighted-average actuarial assumptions (1) Benefit obligation assumptions: Discount rate 2.66 % 2.27 % 3.09 % Rate of compensation increase N/A N/A N/A Pension income/post-retirement expense assumptions: Discount rate 2.27 % 3.09 % 4.26 % Rate of compensation increase N/A N/A N/A (1) During the fourth quarter of each year, we review our actuarial assumptions in light of current economic factors to determine if the assumptions need to be adjusted. Our pension plan asset allocation at December 31, 2021, and 2020, and target allocation for 2022 by asset category are as follows: Target Allocations Percentage of Plan Assets at December 31, Asset Category 2022 2021 2020 Equity securities 0% 0% 13% Fixed income/Debt securities 100% 100% 83% Other 0% 0% 4% Total 100% 100% 100% Historically, we employed a liability-driven investment strategy whereby a mix of equity and fixed-income investments are used to pursue a de-risking strategy which over time seeks to reduce interest rate mismatch risk and other risks while achieving a return that matches or exceeds the growth in projected pension plan liabilities. Risk tolerance is established through careful consideration of plan liabilities and funded status. The investment portfolio primarily contained a diversified mix of equity and fixed-income investments. Other assets such as private equity are used modestly to enhance long-term returns while improving portfolio diversification. Investment risk is measured and monitored on an ongoing basis through quarterly investment portfolio reviews, annual liability measurements, and asset/liability studies at regular intervals. As part of the planned termination of the U.S. Plan, a new investment allocation strategy was put in place to protect the funded status of the U.S. plan assets subsequent to Board approval of the U.S. Plan termination. The target allocation for U.S. plan assets for 2022 is 100% fixed income investments including cash and cash equivalents. The following table summarizes the fair values of our pension plan assets: As of December 31, 2021 2020 Equity securities - U.S. holdings (1) $ 8 $ 7 Bond funds - government (4) (6) ā 53,239 Bond funds - other (5) (6) 31,380 173,853 Cash and cash equivalents (2) 19,415 53,379 Partnerships (3) ā 6,792 Total fair value of plan assets $ 50,803 $ 287,270 The fair values at December 31, 2021, are classified within the following categories in the fair value hierarchy: Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Equity securities - U.S. holdings (1) $ 8 $ ā $ ā $ 8 Bond funds - other (5) 31,380 ā ā 31,380 Cash and cash equivalents (2) 19,415 ā ā 19,415 Total $ 50,803 $ ā $ ā $ 50,803 The fair values at December 31, 2020, are classified within the following categories in the fair value hierarchy: Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Not Leveled Total Equity securities - U.S. holdings (1) $ 7 $ ā $ ā $ ā $ 7 Bond funds - government (4) (6) ā ā ā 53,239 53,239 Bond funds - other (5) (6) ā ā ā 173,853 173,853 Cash and cash equivalents (2) 53,379 ā ā ā 53,379 Partnerships (3) ā ā 6,792 ā 6,792 Total $ 53,386 $ ā $ 6,792 $ 227,092 $ 287,270 (1) Comprised of common stocks of companies in various industries. The Pension Plan fund manager may shift investments from value to growth strategies or vice-versa, from small cap to large cap stocks or vice-versa, in order to meet the Pension Plan's investment objectives, which are to provide for a reasonable amount of long-term growth of capital without undue exposure to volatility and protect the assets from erosion of purchasing power. (2) Comprised of investment grade short-term investment and money-market funds. (3) Comprised of partnerships that invest in various U.S. and international industries. (4) Comprised of long-term government bonds with a minimum maturity of 10 years and zero-coupon Treasury securities ("Treasury Strips") with maturities greater than 20 years. (5) Comprised predominately of investment grade U.S. corporate bonds with various maturities and U.S. high-yield corporate bonds; emerging market debt (local currency sovereign bonds, U.S. dollar-denominated sovereign bonds and U.S. dollar-denominated corporate bonds); and U.S. bank loans. ( 6 ) Comprised of investments that are measured at fair value using the NAV per share practical expedient. In accordance with the provisions of ASC 820-10, these investments have not been classified in the fair value hierarchy. The fair value amount not leveled is presented to allow reconciliation of the fair value hierarchy to total fund pension plan assets. The pension plan assets recorded at fair value are measured and classified in a hierarchy for disclosure purposes consisting of three levels based on the observability of inputs available in the marketplace used to measure fair value as discussed below: ā¢ Level 1: ā¢ Level 2: ā¢ Level 3: The table below reconciles the Level 3 partnership assets within the fair value hierarchy: Amount Fair value of Level 3 partnership assets at January 1, 2020 $ 7,539 Capital contributions 44 Realized and unrealized loss (269 ) Capital distributions (522 ) Fair value of Level 3 partnership assets at December 31, 2020 $ 6,792 Capital contributions 13 Realized and unrealized loss (2,075 ) Capital distributions (4,730 ) Fair value of Level 3 partnership assets at December 31, 2021 $ ā The partnership fund manager used a market approach in estimating the fair value of the plan's Level 3 assets. The market approach estimates fair value by first determining the entity's earnings before interest, taxes, depreciation, and amortization and then multiplying that value by an estimated multiple. When establishing an appropriate multiple, the fund manager considered recent comparable private company transactions and multiples paid. The entity's net debt was then subtracted from the calculated amount to arrive at an estimated fair value for the entity. We expect to make $100 of contributions to the U.S. plans and $235 of contributions to the non-U.S. plans during 2022. Expected benefit payments under the defined benefit pension plans and the postretirement benefit plan, for the next five years subsequent to 2021 and in the aggregate for the following five years are as follows: U.S. Pension Plans Non-U.S. Pension Plans Post- Retirement Life Insurance Plan 2022 $ 100 $ 54 $ 489 2023 96 58 455 2024 92 73 425 2025 88 81 398 2026 84 89 373 2027-2030 349 667 1,571 Total $ 809 $ 1,022 $ 3,711 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. Contributions and costs were generally determined as a percentage of the covered employee's annual salary. We ceased matching employee contributions in the second quarter of 2020 in light of COVID-19 concerns, and we reimplemented the match in February 2021. Effective January 1, 2022, in connection with the U.S. Plan termination process, we amended our 401(k) plan and Expenses related to defined contribution plans include the following: Years Ended December 31, 2021 2020 2019 401(k) and other defined contribution plan expense $ 3,242 $ 1,636 $ 3,125 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | NOTE 8 ā Goodwill and Other Intangible Assets Other Intangible Assets Other intangible assets, net consist of the following components: As of December 31, 2021 Gross Carrying Amount Accumulated Amortization Net Amount Weighted Average Remaining Amortization Period (in years) Other intangible assets: Customer lists / relationships $ 96,889 $ (49,213 ) $ 47,676 8.9 Technology and other intangibles 47,441 (25,229 ) 22,212 6.8 Other intangible assets, net $ 144,330 $ (74,442 ) $ 69,888 8.3 Amortization expense for the year ended December 31, 2021 $ 9,413 As of December 31, 2020 Gross Carrying Amount Accumulated Amortization Net Amount Other intangible assets: Customer lists / relationships $ 97,355 $ (44,002 ) $ 53,353 Technology and other intangibles 47,301 (21,533 ) 25,768 Other intangible assets, net $ 144,656 $ (65,535 ) $ 79,121 Amortization expense for the year ended December 31, 2020 $ 9,055 Amortization expense for the year ended December 31, 2019 $ 7,770 In the third quarter of 2020, due to the restructuring actions further outlined in Note 9, we performed an interim impairment assessment. This resulted in the recognition of $2,200 of impairment charges related to in process research and development, and a revaluation of associated contingent liabilities totaling $1,900. The net impact of $300 was recorded as restructuring expense in the Consolidated Statements of (Loss) Earnings. The estimated amortization expense for the next five years and thereafter is as follows: Amortization expense 2022 $ 9,176 2023 7,170 2024 7,008 2025 6,787 2026 6,752 Thereafter 32,995 Total future amortization expense $ 69,888 Goodwill Changes in the net carrying amount of goodwill were as follows: Total Goodwill as of December 31, 2019 $ 106,056 Increase due to acquisition 3,441 Goodwill as of December 31, 2020 $ 109,497 Increase due to acquisition 430 Decrease from purchase accounting adjustments (129 ) Goodwill as of December 31, 2021 $ 109,798 In addition to the purchase accounting adjustments from the SSI transaction, goodwill increased in 2021 due to an acquisition completed during the second quarter. The purchase price was $510, with $255 paid in the second quarter of 2021 and an additional $255 to be paid in the second quarter of 2022. We performed our annual impairment test as of October 1, 2021, our measurement date, and concluded that there was no impairment in any of our reporting units. The fair value estimates used in the goodwill impairment analysis required significant judgment. The Company's fair value estimates for the purposes of determining the goodwill impairment charge 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 operating margins and assumptions about the overall economic climate and the competitive environment for the business. |
Costs Associated with Exit and
Costs Associated with Exit and Restructuring Activities | 12 Months Ended |
Dec. 31, 2021 | |
Restructuring And Related Activities [Abstract] | |
Costs Associated with Exit and Restructuring Activities | NOTE 9 ā Costs Associated with Exit and Restructuring Activities Restructuring charges are reported as a separate line within operating earnings in the Consolidated Statements of (Loss) Earnings. Total restructuring charges were: Years Ended December 31, 2021 2020 2019 Restructuring charges $ 1,687 $ 1,830 $ 7,448 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. This plan includes transitioning certain administrative functions to a shared service center, realignment of manufacturing locations, and certain other efficiency improvement actions ("September 2020 Plan"). 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, other contract and asset related costs. We have incurred $1,397 in program costs to date, There were no substantial restructuring charges under the September 2020 Plan during the three and twelve months ended December 31, 2021. Due to the robust demand environment and COVID-19 limitations, some projects are delayed. As of December 31, 2021 there was no liability related to the September 2020 Plan. June 2016 Plan In June 2016, we announced plans to restructure operations by phasing out production at our Elkhart, Indiana facility and transitioning it into a research and development center supporting our global operations ("June 2016 Plan"). Additional organizational changes were also implemented in various other locations. In 2017, we revised the June 2016 Plan to include an additional $1,100 in planned costs related to the relocation of our corporate headquarters in Lisle, Illinois and our plant in Bolingbrook, Illinois, both of which have now been consolidated into a single facility. These restructuring actions were completed during the year ended December 31, 2021. Restructuring charges under the June 2016 Plan , w ere $ (3) , $ (32) , and $ during the years ended December 31, 20 2 1 , 20 20 , and 20 1 9 , respectively. April 2014 Plan In April 2014, we announced plans to restructure our operations and consolidate our Canadian operations into other existing facilities as part of our overall plan to simplify our business model and rationalize our global footprint ("April 2014 Plan"). These restructuring actions were substantially completed during 2015 and the remaining liability was settled during the first half of the year ended December 31, 2021. Other Restructuring Activities From time to time we incur other restructuring activities that are not part of a formal plan. During the years ended December 31, 2021 and 2020, we incurred restructuring charges of $1,717 and $442, respectively, for exit and disposal activities at three sites, building and equipment relocation, and workforce reduction costs across the company. The remaining restructuring liability associated with these actions was $962 and $9 at December 31, 2021 and December 31, 2020, respectively. The following table displays the restructuring liability activity for all plans the year ended December 31, 2021: Restructuring liability at January 1, 2021 $ 1,363 Restructuring charges 1,687 Cost paid (1,903 ) Other activities (1) (185 ) Restructuring liability at December 31, 2021 $ 962 (1) Other charges include the effects of currency translation, non-cash asset write-downs, travel, legal and other charges. The total liability of $962 is included in Accrued expenses and other liabilities at December 31, 2021. |
Accrued Expenses and Other Liab
Accrued Expenses and Other Liabilities | 12 Months Ended |
Dec. 31, 2021 | |
Payables And Accruals [Abstract] | |
Accrued Expenses and Other Liabilities | NOTE 10 ā Accrued Expenses and Other Liabilities The components of accrued expenses and other liabilities are as follows: As of December 31, 2021 2020 Accrued product-related costs $ 3,188 $ 4,470 Accrued income taxes 6,761 7,320 Accrued property and other taxes 2,370 2,478 Accrued professional fees 1,629 1,663 Accrued customer-related liabilities 3,254 3,815 Dividends payable 1,289 1,291 Remediation reserves 10,979 10,642 Derivative liabilities 437 671 Other accrued liabilities 6,811 5,821 Total accrued expenses and other liabilities $ 36,718 $ 38,171 |
Contingencies
Contingencies | 12 Months Ended |
Dec. 31, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
Contingencies | NOTE 11 ā 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 Agencyās 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 in the Consolidated Balance Sheets is comprised of the following: Years Ended December 31, 2021 2020 2019 Balance at beginning of period $ 10,642 $ 11,444 $ 11,274 Remediation expense 2,254 2,769 2,602 Remediation payments (1,929 ) (3,639 ) (2,455 ) Other activity (1) 12 68 23 Balance at end of the period $ 10,979 $ 10,642 $ 11,444 (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 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. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Leases | NOTE 12 ā Leases We lease certain land, buildings and equipment under non-cancellable operating leases used in our operations. Operating lease assets represent our right to use an underlying asset for the lease term. Operating lease liabilities represent the present value of lease payments over the lease term, discounted using an estimate of our secured incremental borrowing rate because none of our leases contain a rate implicit in the lease arrangement. The operating lease assets and liabilities are adjusted to include the impact of any lease incentives and non-lease components. We have elected not to separate lease and non-lease components, which include taxes and common area maintenance in some of our leases. Variable lease payments that depend on an index or a rate are included in lease payments using the prevailing index or rate in effect at lease commencement. Options to extend or terminate a lease are included in the lease term when it is reasonably likely that we will exercise that option. We occasionally enter into short term operating leases with an initial term of twelve months or less. These leases are not recorded in the Consolidated Balance Sheets. We determine if an arrangement is a lease or contains a lease at its inception, which normally does not require significant estimates or judgments. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants and we currently have no material sublease agreements. In accordance with FASB Staff Q&A - Topic 842 and Topic 840: Accounting for Lease Concessions Related to the Effects of the COVID-19 Pandemic ("FASB Staff Q&A") issued in April 2020, we elected to account for any lease concessions resulting directly from the COVID-19 pandemic as if the enforceable rights and obligations for the concessions existed in the respective contracts at lease inception and as such we will not account for any concession as a lease modification. Guidance from the FASB Staff Q&A provided methods to account for rent deferrals which include the option to treat the lease as if no changes to the lease contract were made or to treat deferred payments as variable lease payments. The FASB Staff Q&A allows entities to select the most practical approach and does not require the same approach be applied consistently to all leases. As a result, we have accounted for lease deferrals as if no changes to the lease contract were made and will continue to recognize lease expense, on a straight-line basis, during the deferral periods. During the year ended December 31, 2020, these rent concessions related to the COVID-19 pandemic were not material. Components of lease expense for the years ended December 31, 2021, 2020, and 2019 were as follows: Years Ended December 31, 2021 2020 2019 Operating lease cost $ 5,144 $ 4,763 $ 4,342 Short-term lease cost 1,403 1,015 1,013 Total lease cost $ 6,547 $ 5,778 $ 5,355 Supplemental cash flow information related to leases was as follows: Years Ended December 31, 2021 2020 2019 Cash paid for amounts included in the measurement of lease obligations $ 3,666 $ 4,654 $ 3,957 Leased assets obtained in exchange for new operating lease obligations $ 1,253 $ 1,678 $ 5,000 Supplemental balance sheet information related to leases was as follows: As of December 31, 2021 2020 Operating lease obligations $ 3,393 $ 3,294 Long-term operating lease obligations 21,354 23,163 Total lease liabilities $ 24,747 $ 26,457 Weighted-average remaining lease terms (years) 7.21 7.88 Weighted-average discount rate 6.27 % 6.40 % Remaining maturity of our existing lease liabilities as of December 31, 2021 is as follows: Operating Leases (1) 2022 $ 4,826 2023 4,567 2024 4,402 2025 3,759 2026 2,815 Thereafter 11,525 Total $ 31,894 Less: interest (7,147 ) Present value of lease payments $ 24,747 (1) Operating lease payments include $651 of payments related to options to extend lease terms that are reasonably expected to be exercised. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Debt | NOTE 13 ā Debt Long-term debt was comprised of the following: As of December 31, 2021 2020 Total credit facility availability $ 400,000 $ 300,000 Balance outstanding 50,000 54,600 Standby letters of credit 1,740 1,740 Amount available, subject to covenant restrictions $ 348,260 $ 243,660 Weighted-average interest rate 1.16 % 1.92 % On December 15, 2021, we entered into a second amended and restated five-year 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 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. Amortization expense was approximately $169 for the years ended December 31, 2021, $168 in 2020 and $163 in 2019. These costs are included in interest expense in our Consolidated Statements of (Loss) Earnings. We use interest rate swaps to convert the revolving credit facility's variable rate of interest into a fixed rate on a portion of the debt as described more fully in Note 14 "Derivative Financial Instruments." These swaps are treated as cash flow hedges and consequently, the changes in fair value were recorded in other comprehensive earnings. |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Dec. 31, 2021 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | NOTE 14 ā 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 and interest rate 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) income until the hedged transaction affects earnings upon settlement, at which time they are reclassified to the income statement. 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) income to other income (expense). 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 Consolidated Statement of (Loss) Earnings for the year ended December 31, 2021. 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 Consolidated Balance Sheets at fair value. We continue to monitor the Companyās overall currency exposure and may elect to add cash flow hedges in the future. At December 31, 2021, we had a net unrealized gain of $121 in accumulated other comprehensive (loss) income, of which $121 in gains are expected to be reclassified to earnings within the next 12 months. The notional amount of foreign currency forward contracts outstanding was $18,017 at December 31, 2021. 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 December 31, 2021, we have agreements to fix interest rates on $50,000 of long-term debt through February 2024. 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 losses that are reported in accumulated other comprehensive (loss) income that are expected to be reclassified into earnings within the next twelve months is approximately $336. The location and fair values of derivative instruments designated as hedging instruments in the Consolidated Balance Sheets as of December 31, 2021, are shown in the following table: As of December 31, 2021 2020 Interest rate swaps reported in Other current assets $ ā $ ā Interest rate swaps reported in Accrued expenses and other liabilities $ (437 ) $ (671 ) Interest rate swaps reported in Other long-term obligations $ (353 ) $ (1,546 ) Foreign currency hedges reported in Other current assets $ 135 $ 1,125 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 The effect of derivative instruments on the Consolidated Statements of (Loss) Earnings is as follows: Years Ended December 31, 2021 2020 2019 Foreign Exchange Contracts: Amounts reclassified from AOCI to earnings: Net sales $ ā $ (128 ) $ ā Cost of goods sold 1,384 (754 ) 860 Selling, general and administrative expense ā (5 ) 92 Total amounts reclassified from AOCI to earnings 1,384 (887 ) 952 Gain recognized in other expense for hedge ineffectiveness ā 3 ā Total derivative gain (loss) on foreign exchange contracts recognized in earnings $ 1,384 $ (884 ) $ 952 Interest Rate Swaps: (Expense) benefit recorded in interest expense $ (744 ) $ (432 ) $ 491 Total gains (losses) on derivatives $ 640 $ (1,316 ) $ 1,443 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive (Loss) Income | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Accumulated Other Comprehensive (Loss) Income | NOTE 15 ā Accumulated Other Comprehensive (Loss) Income Shareholdersā equity includes certain items classified as accumulated other comprehensive (loss) income (āAOCIā) in the Consolidated Balance Sheets, including: ā¢ 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 and foreign currency forward contracts used to hedge our exposure to changes in exchange rates affecting certain revenues and costs denominated in foreign currencies. 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 14, āDerivative Financial Instrumentsā and Note 18, āFair Value Measurementsā. ā¢ Unrealized gains (losses) on pension obligations are deferred from income statement recognition until the gains or losses are realized. Amounts reclassified to earnings from AOCI are included in net periodic pension income (expense). Further information related to our pension obligations is included in Note 7, āRetirement Plansā. ā¢ Cumulative translation adjustment relates 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. The components of accumulated other comprehensive (loss) income for the year ended December 31, 2021 are as follows: As of December 31, 2020 Gain (Loss) Recognized in OCI (Gain) Loss reclassified from AOCI to earnings As of December 31, 2021 Changes in fair market value of derivatives: Gross $ (1,038 ) $ 1,043 $ (640 ) $ (635 ) Income tax benefit (expense) 240 (240 ) 147 147 Net (798 ) 803 (493 ) (488 ) Changes in unrealized pension cost: Gross (128,004 ) (4,951 ) 130,211 (2,744 ) Income tax benefit (expense) 34,917 1,139 (35,318 ) 738 Net (93,087 ) (3,812 ) 94,893 (2,006 ) Cumulative translation adjustment: Gross (2,036 ) 4 ā (2,032 ) Income tax benefit (expense) ā ā ā ā Net (2,036 ) 4 ā (2,032 ) Total accumulated other comprehensive (loss) income $ (95,921 ) $ (3,005 ) $ 94,400 $ (4,526 ) The components of accumulated other comprehensive (loss) income for the year ended December 31, 2020 are as follows: As of December 31, 2019 Gain (Loss) Recognized in OCI (Gain) Loss reclassified from AOCI to earnings As of December 31, 2020 Changes in fair market value of derivatives: Gross $ 659 $ (3,015 ) $ 1,318 $ (1,038 ) Income tax (expense) benefit (150 ) 684 (294 ) 240 Net 509 (2,331 ) 1,024 (798 ) Changes in unrealized pension cost: Gross (124,140 ) ā (3,864 ) (128,004 ) Income tax benefit 34,018 ā 899 34,917 Net (90,122 ) ā (2,965 ) (93,087 ) Cumulative translation adjustment: Gross (2,211 ) 175 ā (2,036 ) Income tax benefit (expense) 98 (98 ) ā ā Net (2,113 ) 77 ā (2,036 ) Total accumulated other comprehensive (loss) income $ (91,726 ) $ (2,254 ) $ (1,941 ) $ (95,921 ) |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2021 | |
Stockholders Equity Note [Abstract] | |
Shareholders' Equity | NOTE 16 ā Shareholders' Equity Share count and par value data related to shareholders' equity are as follows: As of December 31, 2021 2020 Preferred Stock Par value per share No par value No par value Shares authorized 25,000,000 25,000,000 Shares outstanding ā ā Common Stock Par value per share No par value No par value Shares authorized 75,000,000 75,000,000 Shares issued 57,245,060 57,076,410 Shares outstanding 32,178,715 32,276,787 Treasury stock Shares held 25,066,345 24,799,623 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 Companyās 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 year ended December 31, 2021, 266,722 shares of common stock were repurchased for approximately $8,786. Approximately $41,214 is still available for future purchases under this program. A roll forward of common shares outstanding is as follows: As of December 31, 2021 2020 Balance at beginning of the year 32,276,787 32,472,406 Repurchases (266,722 ) (342,731 ) Restricted stock unit issuances 168,650 147,112 Balance at end of period 32,178,715 32,276,787 |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | NOTE 17 ā Stock-Based Compensation At December 31, 2021, we had five 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 & Incentive Plan ("2014 Plan"), and the 2018 Equity and Incentive Compensation Plan ("2018 Plan"). Future grants can only be made under the 2018 Plan. The 2018 Plan allows 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 2018 Plan. The following table summarizes the compensation expense included in selling, general and administrative expenses in the Consolidated Statements of (Loss) Earnings related to stock-based compensation plans: Years Ended December 31, 2021 2020 2019 Service-Based RSUs $ 2,714 $ 2,601 $ 2,207 Performance-Based RSUs 3,113 539 2,553 Cash-settled awards 278 277 255 Total $ 6,105 $ 3,417 $ 5,015 Income tax benefit 1,404 786 1,133 Net $ 4,701 $ 2,631 $ 3,882 The fair value of all equity awards that vested during the periods ended December 31, 2021, 2020, and 2019 were $7,063, $5,680, and $6,589, respectively. We recorded a tax deduction related to equity awards that vested during the year ended December 31, 2021, in the amount of $1,624. 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 expense at December 31, 2021 Weighted- average period Service-Based RSUs $ 2,021 1.23 years Performance-Based RSUs 3,704 1.77 years Total $ 5,725 1.58 years 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 December 31, 2021: 2018 Plan 2014 Plan 2009 Plan 2004 Plan Directors' Plan Awards originally available to be granted 2,500,000 1,500,000 3,400,000 6,500,000 N/A Performance stock options outstanding ā ā ā ā ā Maximum potential RSU and cash settled awards outstanding 638,268 35,100 45,200 14,545 4,722 Maximum potential awards outstanding 638,268 35,100 45,200 14,545 4,722 RSUs and cash settled awards vested and released 127,313 ā ā ā ā Awards available to be granted 1,734,419 ā ā ā ā Service-Based Restricted Stock Units Service-based RSUs entitle the holder to receive one share of common stock for each unit when the unit vests. RSUs are issued to officers, key employees, and non-employee directors as compensation. Generally, the RSUs vest over a three-year A summary of RSU activity for the year ended December 31, 2021 is presented below: Units Weighted Average Grant Date Fair Value Weighted Average Remaining Contractual Term Aggregate Intrinsic Value Outstanding at January 1, 2021 367,428 $ 21.28 Granted 93,565 33.81 Released (161,626 ) 21.41 Forfeited (16,151 ) 29.11 Outstanding at December 31, 2021 283,216 $ 24.91 17.88 $ 10,320 Releasable at December 31, 2021 132,667 $ 17.53 29.92 $ 4,872 Years Ended December 31, 2021 2020 2019 Weighted-average grant date fair value $ 33.81 $ 27.94 $ 28.61 Intrinsic value of RSUs released $ 5,408 $ 2,503 $ 2,155 A summary of non-vested RSU activity for the year ended December 31, 2021 is presented below: RSUs Weighted Average Grant Date Fair Value Nonvested at January 1, 2021 163,854 $ 28.14 Granted 93,565 33.81 Vested (90,719 ) 28.39 Forfeited (16,151 ) 29.11 Nonvested at December 31, 2021 150,549 $ 31.42 Performance-Based Restricted Stock Units We grant performance-based restricted stock unit awards ("PSUs") to certain executives and key employees. Units are usually awarded in the range from zero percent to 200% of a targeted number of shares. The award rate for the 2018-2020, 2019-2021, and 2020-2022 PSUs is dependent upon our achievement of sales growth targets, cash flow targets, and relative total shareholder return ("RTSR") using a matrix based on the percentile ranking of our stock price performance compared to a peer group over a three-year period. Other PSUs are granted from time to time based on other performance criteria. The initial fair value of the PSUs is equivalent to the trading value of our common stock on the grant date. The fair value is subsequently adjusted quarterly based on management's assessment of the Company's performance relative to the target number of shares performance criteria. A summary of PSU activity for the year ended December 31, 2021 is presented below: Units Weighted Average Grant Date Fair Value Weighted Average Remaining Contractual Term Aggregate Intrinsic Value Outstanding at January 1, 2021 225,559 $ 28.97 Granted 90,337 34.38 Added by performance factor 18,107 28.33 Released (53,145 ) 28.33 Forfeited (43,091 ) 27.71 Outstanding at December 31, 2021 237,767 $ 31.35 1.74 $ 8,731 Releasable at December 31, 2021 ā $ ā $ ā The following table summarizes each grant of performance awards outstanding at December 31, 2021: Description Grant Date Vesting Year Vesting Dependency Target Units Outstanding Maximum Number of Units to be Granted 2019-2021 Performance RSUs February 7, 2019 2021 35% RTSR, 35% sales growth, 46,928 93,856 2019 Supplemental Performance RSUs February 7, 2019 2021 Succession Planning Targets 6,945 13,890 2020 - 2022 QTI Performance RSUs September 24, 2019 2022 50% EBITDA growth, 1,750 3,500 2020 - 2022 Performance RSUs February 6, 2020 2022 25% RTSR, 40% sales growth, 59,475 118,950 2021 - 2023 Performance RSUs Varies 2023 25% RTSR, 40% sales growth, 69,669 139,338 Focus 2025 Performance RSUs Varies 2024 Cumulative revenues of $750 million over a trailing four-quarter period 53,000 53,000 Total 237,767 422,534 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 December 31, 2021, and 2020, we had 32,085 and 30,009 cash-settled RSUs outstanding, respectively. At December 31, 2021, and 2020, liabilities of $400 and $396, respectively were included in Accrued expenses and other liabilities on our Consolidated Balance Sheets. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | NOTE 18 ā Fair Value Measurements We use interest rates swaps to convert a portion of our Revolving Credit Facility's outstanding balance from a variable rate of interest to 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. These derivative financial instruments are measured at fair value on a recurring basis. The table below summarizes the financial liabilities and assets that were measured at fair value on a recurring basis as of December 31, 2021 and the gain (loss) recorded during the year ended December 31, 2021: (Liability) Asset Carrying Value at December 31, 2021 Quoted Prices in Active Markets for Identical (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (Loss) Gain for Year Ended December 31, 2021 Interest rate swap $ (790 ) $ ā $ (790 ) $ ā $ (744 ) Foreign currency hedges $ 135 $ ā $ 135 $ ā $ 1,384 Contingent consideration $ (1,200 ) $ ā $ ā $ (1,200 ) $ ā The table below summarizes the financial assets that were measured at fair value on a recurring basis as of December 31, 2020 and the (loss) recorded during the year ended December 31, 2020: (Liability) Asset Carrying Value at December 31, 2020 Quoted Prices in Active Markets for Identical (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (Loss) for Year Ended December 31, 2020 Interest rate swap $ (2,217 ) $ ā $ (2,217 ) $ ā $ (432 ) Foreign currency hedges $ 1,125 $ ā $ 1,125 $ ā $ (887 ) Contingent consideration $ (2,000 ) $ ā $ ā $ (2,000 ) $ ā 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. Refer to Note 3 for further discussion on contingent consideration. A roll-forward of the contingent consideration is as follows: Contingent Consideration Balance at December 31, 2020 $ 2,000 Settled in cash (650 ) Reclassified to payable in accrued expenses and other liabilities (150 ) Balance at December 31, 2021 in accrued expenses and other liabilities $ 1,200 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. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 19 ā Income Taxes (Loss) earnings before income taxes consist of the following: Years Ended December 31, 2021 2020 2019 U.S. $ (128,699 ) $ (7,101 ) $ 15,103 Non-U.S. 67,819 52,580 35,163 Total $ (60,880 ) $ 45,479 $ 50,266 Significant components of income tax provision/(benefit) are as follows: Years Ended December 31, 2021 2020 2019 Current: U.S. $ 36 $ 211 $ (391 ) Non-U.S. 11,932 11,275 10,666 Total Current 11,968 11,486 10,275 Deferred: U.S. (35,979 ) (2,815 ) 558 Non-U.S. 4,997 2,122 3,287 Total Deferred (30,982 ) (693 ) 3,845 Total provision for income taxes $ (19,014 ) $ 10,793 $ 14,120 Significant components of our deferred tax assets and liabilities are as follows: As of December 31, 2021 2020 Post-retirement benefits $ 1,226 $ 1,259 Inventory reserves 69 477 Loss carry-forwards 5,070 5,128 Credit carry-forwards 19,665 17,401 Accrued expenses 4,917 5,693 Research expenditures 19,226 18,893 Operating lease liabilities 5,643 6,012 Stock compensation 1,970 1,969 Foreign exchange loss 2,052 2,166 Other 769 872 Gross deferred tax assets 60,607 59,870 Depreciation and amortization 13,386 13,004 Pensions 10,958 12,557 Operating lease assets 5,307 5,703 Subsidiaries' unremitted earnings 1,947 3,046 Gross deferred tax liabilities 31,598 34,310 Net deferred tax assets 29,009 25,560 Deferred tax asset valuation allowance (9,489 ) (8,320 ) Total net deferred tax assets $ 19,520 $ 17,240 The deferred tax assets and deferred tax liabilities, classified as non-current, are as follows below: As of December 31, 2021 2020 Non-current deferred tax assets $ 25,414 $ 24,250 Non-current deferred tax liabilities $ (5,894 ) $ (7,010 ) Total net deferred tax assets $ 19,520 $ 17,240 At each reporting date, we weigh all available positive and negative evidence to assess whether it is more-likely-than-not that the Company's deferred tax assets, including deferred tax assets associated with accumulated loss carryforwards and tax credits in the various jurisdictions in which it operates, will be realized. As of December 31, 2021, and 2020, we recorded deferred tax assets related to certain U.S. state and non-U.S. income tax loss carryforwards of $5,070 and $5,128, respectively, and U.S. and non-U.S. tax credits of $19,665 and $17,401, respectively. The deferred tax assets expire in various years primarily between 2022 and 2041. Generally, we assess if it is more-likely-than-not that our net deferred tax assets will be realized during the available carry-forward periods. As a result, we have determined that valuation allowances of $9,489 and $8,320 should be provided for certain deferred tax assets at December 31, 2021, and 2020, respectively. As of December 31, 2021, the valuation allowances relate to certain U.S. state and non-U.S. loss carry-forwards and certain U.S. state tax credits that management does not anticipate will be utilized. A valuation allowance of $1,286 was recorded in 2021 against the U.S. federal foreign tax credit carryforwards of $9,229. These credits begin to expire in varying amounts between 2028 and 2031. No valuation allowance was recorded in 2021 against the U.S. federal research and development tax credits of $8,024. These credits begin to expire in varying amounts between 2022 and 2041. We assessed the anticipated realization of those tax credits utilizing future taxable income projections. Based on those projections, management believes it is more-likely-than-not that we will realize the benefits of these credit carryforwards. The following table reconciles taxes at the U.S. federal statutory rate to the effective income tax rate: Years Ended December 31, 2021 2020 2019 Taxes at the U.S. statutory rate 21.0% 21.0% 21.0% State income taxes, net of federal income tax benefit 4.3% (0.1)% 0.4% Non-U.S. earnings taxed at rates different than the U.S. statutory rate 3.1% (0.9)% 1.3% Foreign source earnings, net of associated foreign tax credits 0.1% (0.7)% 0.3% Benefit of tax credits 0.8% (0.7)% (1.5)% Non-deductible expenses (1.6)% (0.5)% 4.1% Stock compensation - excess tax benefits 0.7% (0.1)% (1.1)% Adjustment to valuation allowances (3.1)% 1.6% (0.4)% Other changes in tax laws and rates ā ā 0.1% Change in unrecognized tax benefits 0.4% (0.7)% 3.3% Impacts of unremitted foreign earnings (4.5)% 5.2% 1.3% Release of disproportionate tax effects of OCI 8.8% ā ā Other 1.2% (0.4)% (0.7)% Effective income tax rate 31.2% 23.7% 28.1% In 2020, the Company began the termination of the U.S.-based pension plan. As a result of the final settlement of the pension liability in 2021, we reclassified the disproportionate tax effect related to the pension plan of $5,375 that were previously recorded in accumulated other comprehensive loss to income tax expense. Further information related to our pension terminations is included in Note 7 ā Retirement Plans. Following the enactment of the 2017 Tax Cut and Jobs Act and the associated one-time transition tax, in general, repatriation of foreign earnings to the U.S. can be completed with no incremental U.S. Tax. However, there are limited other taxes that continue to apply such as foreign withholding and certain state taxes. The company records a deferred tax liability for the estimated foreign earnings and state tax cost associated with the undistributed foreign earnings that are not permanently reinvested. In 2020 the Company made the decision to no longer permanently reinvest the earnings of its Taiwan subsidiary. The Tax Act also includes provisions for Global Intangible Low-Taxed Income (āGILTIā) wherein taxes on foreign income are imposed in excess of a deemed return on tangible assets of foreign corporations. We elected to recognize the tax on GILTI as an expense in the period the tax is incurred. We recognize the financial statement benefit of a tax position when it is more-likely-than-not, based on its technical merits, that the position will be sustained upon examination. A tax position that meets the more-likely-than-not threshold is then measured to determine the amount of benefit to be recognized in the financial statements. As of December 31, 2021, we have approximately $2,196 of unrecognized tax benefits, which if recognized, would impact the effective tax rate. We do not anticipate significant changes in our unrecognized tax benefit within the next 12 months. A reconciliation of the beginning and ending unrecognized tax benefits is provided below: As of December 31, 2021 2020 Balance at January 1 $ 3,128 $ 5,016 Increase related to current year tax positions 70 880 Decrease related to prior year tax positions (237 ) (1,156 ) Decrease related to lapse in statute of limitation (125 ) ā Decrease related to settlements with taxing authorities (640 ) (1,612 ) Balance at December 31 $ 2,196 $ 3,128 Our continuing practice is to recognize interest and/or penalties related to unrecognized tax benefits as income tax expense. As of December 31, 2021, and 2020, $39 and $301, respectively, of interest and penalties were accrued. We are subject to taxation in the U.S., various states, and in non-U.S. jurisdictions. Our U.S. income tax returns are primarily subject to examination from 2018 through 2020; however, U.S. tax authorities also have the ability to review prior tax years to the extent loss carryforwards and tax credit carryforwards are utilized. The open years for the non-U.S. tax returns range from 2 01 0 through 20 20 based on local statutes . |
Geographic Data
Geographic Data | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Geographic Data | NOTE 20 ā Geographic Data Financial information relating to our operations by geographic area were as follows: Years Ended December 31, Net Sales 2021 2020 2019 United States $ 297,322 $ 241,823 $ 279,904 China 106,700 88,129 87,342 Singapore 37,742 31,985 32,957 Czech Republic 36,252 27,143 33,214 Taiwan 27,768 21,849 19,810 Other non-U.S. 7,141 13,137 15,772 Consolidated net sales $ 512,925 $ 424,066 $ 468,999 Sales are attributed to countries based upon the origin of the sale. Years Ended December 31, Long-Lived Tangible Assets 2021 2020 United States $ 37,409 $ 39,368 China 30,461 30,240 Mexico 13,311 12,441 Czech Republic 9,728 9,856 Taiwan 5,679 5,071 Other non-U.S 288 461 Consolidated long-lived assets $ 96,876 $ 97,437 |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2021 | |
Valuation And Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | CTS CORPORATION SCHEDULE II ā VALUATION AND QUALIFYING ACCOUNTS (in thousands) Balance at Beginning of Period Charged to Expense Charged to Other Accounts (Write-offs) / Recoveries Balance at End of Period Year ended December 31, 2021 Allowance for credit losses $ 764 $ 1,020 $ 4 $ (131 ) $ 1,657 Year ended December 31, 2020 Allowance for credit losses $ 261 $ 513 $ 152 $ (162 ) $ 764 Year ended December 31, 2019 Allowance for credit losses $ 384 $ 141 $ (9 ) $ (255 ) $ 261 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Description of Business | Description of Business: CTS Corporation ("CTS", "we", "our", "us" or the "Company") is a global manufacturer of sensors, connectivity components, and actuators operating as a single reportable business segment. We operate manufacturing facilities located throughout North America, Asia and Europe and service major markets globally. |
Principles of Consolidation | Principles of Consolidation: The consolidated financial statements include the accounts of CTS and its wholly owned subsidiaries. All significant intercompany accounts and transactions have been eliminated. |
Use of Estimates | Use of Estimates: The preparation of financial statements in conformity with the accounting principles generally accepted in the United States of America ("U.S. GAAP") 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 reporting period. Actual results could differ materially from those estimates. |
Cash and Cash Equivalents | Cash and Cash Equivalents: All highly liquid investments with maturities of three months or less at the date of purchase are considered to be cash equivalents. |
Accounts Receivable and Allowance for Credit Losses | Accounts Receivable and Allowance for Credit Losses: Accounts receivable consists primarily of amounts due from normal business activities. We maintain an allowance for credit losses for estimated uncollectible accounts receivable. Our reserves for estimated credit losses are based upon historical experience, specific customer collection issues, current conditions and reasonable and supportable forecasts that affect the collectability of the remaining cash flows over the contractual terms of our receivables and other financial assets. Accounts are written off against the allowance account when they are determined to no longer be collectible. |
Concentration of Credit Risk | Concentration of Credit Risk: Financial instruments that potentially subject us to concentrations of credit risk consist of cash and cash equivalents and trade receivables. Our cash and cash equivalents, at times, may exceed federally insured limits. Cash and cash equivalents are deposited primarily in banking institutions with global operations. We have not experienced any losses in such accounts. We believe we are not exposed to any significant credit risk related to cash and cash equivalents. Trade receivables subject us to the potential for credit risk with major customers. We sell our products to customers principally in the aerospace and defense, industrial, medical, and transportation markets, primarily in North America, Europe, and Asia. We perform ongoing credit evaluations of our customers to minimize credit risk. We do not require collateral. The allowance for credit losses is based on management's estimates of the collectability of its accounts receivable after analyzing historical credit losses, customer concentrations, customer creditworthiness, current economic trends, specific customer collection issues, and reasonable and supportable forecasts that affect the collectability of the remaining cash flows over the contractual terms of our receivables. Uncollectible trade receivables are charged against the allowance for credit losses when all reasonable efforts to collect the amounts due have been exhausted. Our net sales to significant customers as a percentage of total net sales were as follows: Years Ended December 31, 2021 2020 2019 Cummins Inc. 15.0% 13.1% 16.1% Toyota Motor Corporation 12.4% 13.4% 11.6% We sell parts to these two transportation customers for certain vehicle platforms under purchase agreements that have no volume commitments and are subject to purchase orders issued on a periodic basis. No other customer accounted for 10% or more of total net sales during these periods. |
Inventories | Inventories: We value our inventories at the lower of the actual cost to purchase or manufacture using the first-in, first-out ("FIFO") method, or net realizable value. We review inventory quantities on hand and record a provision for excess and obsolete inventory based on historical consumption trends as well as forecasts of product demand including related production requirements. Once reserves are established, write-downs of inventory are considered permanent adjustments to the cost basis of inventory. Our reserves contain uncertainties because the calculation requires management to make assumptions and to apply judgment regarding historical experience, market conditions, and product life cycles. Changes in actual demand or market conditions could adversely impact our reserve calculations. |
Retirement Plans | Retirement Plans: We have various defined benefit and defined contribution retirement plans. Our policy is to annually fund the defined benefit pension plans at or above the minimum required by law. We: 1) recognize the funded status of a benefit plan (measured as the difference between plan assets at fair value and the projected benefit obligation) in our Consolidated Balance Sheets; 2) recognize the gains or losses and prior service costs or credits that arise during the period but are not recognized as components of net periodic benefit/cost as a component of other comprehensive earnings; and 3) measure defined benefit plan assets and obligations as of the date of our fiscal year-end. During 2020, the Company commenced the termination process for its primary U.S. Pension Plan (āU.S. Planā) and expects to complete the termination process in the first half of 2022. See Note 7, "Retirement Plans" for further information. |
Property, Plant and Equipment | Property, Plant and Equipment: Property, plant and equipment is stated at cost, less accumulated depreciation. Depreciation is computed primarily over the estimated useful lives of the various classes of assets using the straight-line method. Useful lives for buildings and improvements range from 10 to 45 years, machinery and equipment from 3 to 15 years, and software from 2 to 15 years. Depreciation on leasehold improvements is computed over the lesser of the lease term or estimated useful lives of the assets. Amounts expended for maintenance and repairs are charged to expense as incurred. Major overhauls that extend the useful lives of existing assets are capitalized. Upon disposition, any related gains or losses are included in operating earnings |
Income Taxes | Income Taxes: We account for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, we determine deferred tax assets and liabilities on the basis of the differences between the financial statement and tax bases of assets and liabilities by using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. We recognize deferred tax assets to the extent that we believe that these assets are more-likely-than-not to be realized. In making such a determination, we consider all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. If we determine that we would be able to realize our deferred tax assets in the future in excess of their net recorded amount, we would make an adjustment to the deferred tax asset valuation allowance, which would reduce the provision for income taxes. We record uncertain tax positions in accordance with Accounting Standards Codification ("ASC") Topic 740 on the basis of a two-step process in which (1) we determine whether it is more-likely-than-not that the tax positions will be sustained on the basis of the technical merits of the position and (2) for those tax positions that meet the more-likely-than-not recognition threshold, we recognize the largest amount of tax benefit that is more than 50 percent likely to be realized upon ultimate settlement with the related tax authority. We recognize interest and penalties related to unrecognized tax benefits on the income tax expense line in the accompanying Consolidated Statements of (Loss) Earnings. Accrued interest and penalties are included in the related tax liability line in the Consolidated Balance Sheets. See Note 19, "Income Taxes" for further information. |
Goodwill and Other Intangible Assets | Goodwill and Indefinite-lived Intangible Assets: Goodwill represents the excess of the purchase price over the fair values of the net assets acquired in a business combination. In accordance with ASC 350, IntangiblesāGoodwill and Other , goodwill is not amortized, but instead is tested for impairment annually or more frequently if circumstances indicate a possible impairment may exist. Absent any interim indicators of impairment, the Company tests for goodwill impairment as of the first day of its fourth fiscal quarter of each year. Based upon our latest assessment, we determined that our goodwill was not impaired as of October 1, 2021. In addition to goodwill, we also had an acquired in-process research and development ("IPR&D") intangible asset that was treated as indefinite-lived intangible assets and therefore was not subject to amortization until the completion or abandonment of the associated research and development efforts. In the third quarter of 2020, due to the restructuring actions further outlined in Note 9, we identified a triggering event associated with a specific asset group including IPR&D due to executed restructuring actions. This resulted in the recognition of $2,200 of impairment charges, and a revaluation of associated contingent liabilities totaling $1,900. The net impact of $300 was recorded as restructuring charges in the Consolidated Statements of (Loss) Earnings in 2020. Other Intangible Assets and Long-lived Assets: We account for long-lived assets (excluding indefinite-lived intangible assets) in accordance with the provisions of ASC 360, Property, Plant, and Equipment . This statement requires that long-lived assets, which includes fixed assets and finite-lived intangible assets, be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If an impairment test is warranted, recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the sum of the undiscounted cash flows expected to result from the use and the eventual disposition of the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount in which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell. In 2020, w e recorded a charge of $ 1,016 due to the impairment of a specific asset group that was recorded in selling, general and administrative expenses in the Consolidated Statements of (Loss) Earnings. Intangible assets (excluding indefinite-lived intangible assets) consist primarily of technology, customer lists and relationships, patents, and trade names. These assets are recorded at cost and usually amortized on a straight-line basis over their estimated lives. We assess useful lives based on the period over which the asset is expected to contribute to cash flows. |
Revenue Recognition | Revenue Recognition: Product revenue is recognized upon the transfer of promised goods to a customer in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods net of reserves. We follow the five step model to determine when this transfer has occurred: 1) identify the contract(s) with the customer; 2) identify the performance obligations in the contract; 3) determine the transaction price; 4) allocate the transaction price to the performance obligations in the contract; 5) recognize revenue when (or as) the entity satisfies a performance obligation. Our revenue reserves contain uncertainties because they require management to make assumptions and to apply judgment to estimate the value of future credits to customers for product returns, price adjustments, and stock rotation adjustments. We base these estimates on the most likely value method considering all reasonably available information, including our historical experience and current expectations, and are reflected in the transaction price when sales are recorded. |
Research and Development | Research and Development: Research and development ("R&D") costs include expenditures for search and investigation aimed at discovery of new knowledge to be used to develop new products or processes or to significantly enhance existing products or production processes. R&D costs also include the implementation of new knowledge through design, testing of product alternatives, or construction of prototypes. We expense all R&D costs as incurred, net of customer reimbursements for sales of prototypes and non-recurring engineering charges. We create prototypes and tools related to R&D projects. A prototype is defined as a constructed product not intended for production resulting in a commercial sale. We also incur engineering costs related to R&D activities. Such costs are incurred to support such activities to improve the reliability, performance and cost-effectiveness of our existing products and to design and develop innovative products that meet customer requirements for new applications. Furthermore, we may engage in activities that develop tooling machinery and equipment for our customers. We occasionally enter into agreements with our customers whereby we receive a contractual guarantee based on achieving milestones to be reimbursed the costs we incur in the product development process or to construct molds, dies, and other tools that are used to make many of the products we sell. The costs we incur are included in other current assets on the Consolidated Balance Sheets until reimbursement is received from the customer. Reimbursements received from customers are netted against such costs and included in our Consolidated Statements of (Loss) Earnings if the amount received is in excess of the costs that we incur. The following is a summary of amounts to be received from customers as of December 31, 2021 and 2020: As of December 31, 2021 2020 Cost of molds, dies and other tools included in other current assets $ 4,497 $ 4,895 |
Financial Instruments | Financial Instruments: We use forward contracts to mitigate currency risk related to forecasted foreign currency revenue and costs. These forward contracts are designed as cash flow hedges. At least quarterly, we assess the effectiveness of these hedging relationships based on the total change in their fair value using regression analysis. In addition, we use interest rate swaps to convert a portion of our revolving credit facility's variable rate of interest into a fixed rate. As a result of the use of these derivative instruments, the Company is exposed to the risk that counterparties to derivative contracts will fail to meet their contractual obligations. To mitigate the counterparty credit risk, the Company has a policy of only entering into contracts with carefully selected major financial institutions based upon their credit ratings and other factors and by using netting agreements. Our established policies and procedures for mitigating credit risk on principal transactions include reviewing and establishing limits for credit exposure and continually assessing the creditworthiness of counterparties. We estimate the fair value of our financial instruments as follows: Instrument Method for determining fair value Cash, cash equivalents, accounts receivable and accounts payable Cost, approximates fair value due to the short-term nature of these instruments. Revolving credit facility 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 credit facility. Interest rate swaps and forward contracts The fair value of our interest rate swaps and forward contracts are measured using a market approach which uses current industry information. |
Debt Issuance Costs | Debt Issuance Costs: We have debt issuance costs related to our long-term debt that are being amortized using the straight-line method over the term of the debt. |
Stock-Based Compensation | Stock-Based Compensation: We recognize expense related to the fair value of stock-based compensation awards, consisting of restricted stock units ("RSUs"), cash-settled restricted stock units, performance share units ("PSUs"), and stock options, in the Consolidated Statements of (Loss) Earnings. We estimate the fair value of stock option awards on the date of grant using the Black-Scholes option pricing model. A number of assumptions are used by the Black-Scholes option pricing model to compute the grant date fair value of an award, including expected price volatility, option term, risk-free interest rate, and dividend yield. These assumptions are established at each grant date based upon current information at that time. Expected volatilities are based on historical volatilities of CTS common stock. The expected option term is derived from historical data of exercise behavior. Actual option terms can differ from the expected option terms as a result of different groups of employees exhibiting different exercise behavior. The dividend yield is based on historical dividend payments. The risk-free rate for periods within the contractual life of the option is based on the U.S. Treasury yield curve at the time of grant. The fair value of awards that are ultimately expected to vest is recognized as expense over the requisite service periods of the awards in the Consolidated Statements of (Loss) Earnings. The grant date fair values of our service-based and performance-based RSUs are the closing price of our common stock on the date of grant. The grant date fair value of our market-based RSUs is determined by using a simulation, or Monte Carlo, approach. Under this approach, stock returns from a comparative group of companies are simulated over the performance period, considering both stock price volatility and the correlation of returns. The simulated results are then used to estimate the future payout based on the performance and payout relationship established by the conditions of the award. The future payout is discounted to the measurement date using the risk-free interest rate. Both our stock option and RSU awards primarily have a graded vesting schedule. 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. Compensation expense for PSUs is measured by determining the fair value of the award using the closing share price on the grant date and is recognized ratably from the grant date to the vesting date for the number of awards expected to vest. The amount of compensation expense recognized for PSUs is dependent upon a quarterly assessment of the likelihood of achieving the performance conditions and is subject to adjustment based on management's assessment of the Company's performance relative to the target number of shares performance criteria. Forfeitures are recorded as they occur. See Note 17, "Stock-Based Compensation" for further information. |
(Loss) Earnings Per Share | (Loss) Basic (loss) earnings per share excludes any dilution and is computed by dividing net (loss) earnings available to common shareholders by the weighted-average number of common shares outstanding for the period. Diluted earnings per share is calculated by dividing net earnings by the weighted average shares outstanding assuming dilution. Dilutive common shares outstanding is computed using the Treasury Stock Method and reflects the additional shares that would be outstanding if dilutive stock options were exercised, and restricted stock units were settled for common shares during the period. In addition, dilutive shares include any shares issuable related to performance share units for which the performance conditions would have been met as of the end of the period and therefore would be considered contingently issuable. If the common stock equivalents have an anti-dilutive effect, they are excluded from the computation of diluted earnings per share. There was no anti-dilutive impact for the year ended December 31, 2021 as result of a net loss incurred in the period. If there is a net loss for the period, then basic (loss) earnings per share equals diluted (loss) earnings per share. Our antidilutive securities consist of the following: Years Ended December 31, (units) 2021 2020 2019 Antidilutive securities ā 26,140 22,040 |
Foreign Currencies | Foreign Currencies: The financial statements of our non-U.S. subsidiaries, except the United Kingdom ("U.K.") subsidiary, are remeasured into U.S. dollars using the U.S. dollar as the functional currency with all remeasurement adjustments included in the determination of net (loss) earnings. Foreign currency (losses) gains recorded in the Consolidated Statements of (Loss) Earnings includes the following: Years Ended December 31, 2021 2020 2019 Foreign currency (losses) gains $ (3,305 ) $ 5,316 $ (1,797 ) The assets and liabilities of our U.K. subsidiary are translated into U.S. dollars at the current exchange rate at period end, with the resulting translation adjustments made directly to the "accumulated other comprehensive loss" component of shareholders' equity. Our Consolidated Statements of (Loss) Earnings accounts are translated at the average rates during the period. |
Shipping and Handling | Shipping and Handling: All fees billed to the customer for shipping and handling are classified as a component of net sales. All costs associated with shipping and handling are classified as a component of cost of goods sold or operating expenses, depending on the nature of the underlying purchase. |
Sales Taxes | Sales Taxes: When applicable, we classify sales taxes on a net basis in our consolidated financial statements. |
Reclassifications | Reclassifications: 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. |
Accounting Pronouncements Recently Adopted | Accounting Pronouncements Recently Adopted ASU No. 2020-04, "Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting" In March 2020, the Financial Accounting Standards Board (āFASBā) issued Accounting Standards Update (āASUā) 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting , which provides temporary optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting as it relates to our LIBOR indexed instruments. ASU 2020-04 provides optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. ASU 2020-04 is effective for all entities as of March 12, 2020 through December 31, 2022, and an entity may elect to apply ASU 2020-04 for contract modifications by Topic or Industry Subtopic as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020, or prospectively from a date within an interim period that includes or is subsequent to March 12, 2020, up to the date that the financial statements are available to be issued. We amended and restated our credit and underlying interest rate swap agreements effective December 15, 2021. We have elected to continue to apply hedge accounting as we have determined that the hedge remains effective. See Note 13 for further discussion of the credit agreement modification. ASU No. 2019-12, "Simplifying the Accounting for Income Taxes" In December 2019, the FASB issued ASU 2019-12, Simplifying the Accounting for Income Taxes , as part of its simplification initiative to reduce the cost and complexity in accounting for income taxes. ASU 2019-12 removes certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period, and the recognition of deferred tax liabilities for outside basis differences. ASU 2019-12 also amends other aspects of the guidance to help simplify and promote consistent application of U.S. GAAP. The guidance is effective for interim and annual periods beginning after December 15, 2020, with early adoption permitted. We adopted this ASU on January 1, 2021 and it did not have a material impact on our financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Schedule of Net Sales to Significant Customers as Percentage of Total Net Sales | Our net sales to significant customers as a percentage of total net sales were as follows: Years Ended December 31, 2021 2020 2019 Cummins Inc. 15.0% 13.1% 16.1% Toyota Motor Corporation 12.4% 13.4% 11.6% We sell parts to these two transportation customers for certain vehicle platforms under purchase agreements that have no volume commitments and are subject to purchase orders issued on a periodic basis. No other customer accounted for 10% or more of total net sales during these periods. |
Summary of Amounts to be Received From Customers | We occasionally enter into agreements with our customers whereby we receive a contractual guarantee based on achieving milestones to be reimbursed the costs we incur in the product development process or to construct molds, dies, and other tools that are used to make many of the products we sell. The costs we incur are included in other current assets on the Consolidated Balance Sheets until reimbursement is received from the customer. Reimbursements received from customers are netted against such costs and included in our Consolidated Statements of (Loss) Earnings if the amount received is in excess of the costs that we incur. The following is a summary of amounts to be received from customers as of December 31, 2021 and 2020: As of December 31, 2021 2020 Cost of molds, dies and other tools included in other current assets $ 4,497 $ 4,895 |
Estimate of Fair Value of Financial Instruments | We estimate the fair value of our financial instruments as follows: Instrument Method for determining fair value Cash, cash equivalents, accounts receivable and accounts payable Cost, approximates fair value due to the short-term nature of these instruments. Revolving credit facility 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 credit facility. Interest rate swaps and forward contracts The fair value of our interest rate swaps and forward contracts are measured using a market approach which uses current industry information. |
Summary of Antidilutive Securities | Our antidilutive securities consist of the following: Years Ended December 31, (units) 2021 2020 2019 Antidilutive securities ā 26,140 22,040 |
Summary of Foreign Currencies (Losses) Gains Recorded in Consolidated Statement of (Loss) Earnings | Foreign currency (losses) gains recorded in the Consolidated Statements of (Loss) Earnings includes the following: Years Ended December 31, 2021 2020 2019 Foreign currency (losses) gains $ (3,305 ) $ 5,316 $ (1,797 ) |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Revenue From Contract With Customer [Abstract] | |
Summary of Disaggregated Revenues | The following table presents revenues disaggregated by the major markets we serve: Years Ended December 31, 2021 2020 Transportation $ 284,080 $ 241,445 Industrial 133,371 104,224 Medical 48,159 39,070 Aerospace & Defense 47,315 39,327 Total $ 512,925 $ 424,066 |
Business Acquisitions (Tables)
Business Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Sensor Scientific, Inc. | |
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 at the date of acquisition: Consideration Paid Cash paid, net of cash acquired of $470 $ 8,221 Contingent consideration 2,000 Purchase price $ 10,221 Fair Values at December 30, 2020 Current assets $ 2,551 Property, plant and equipment 67 Other assets 14 Goodwill 3,321 Intangible assets 5,340 Fair value of assets acquired 11,293 Less fair value of liabilities acquired (1,072 ) Purchase price $ 10,221 |
Summary of Carrying Amounts and Weighted Average Lives of Acquired Intangible Assets | The following table summarizes the carrying amounts and weighted average lives of the acquired intangible assets: Carrying Value Weighted Average Amortization Period Customer lists/relationships $ 5,200 11.0 Trademarks, tradenames, and other intangibles 140 3.0 Total $ 5,340 |
Quality Thermistor, Inc. | |
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 at the date of acquisition : Consideration Paid Cash paid, net of cash acquired of $567 $ 72,850 Contingent consideration 1,056 Purchase price $ 73,906 Fair Values at July 31, 2019 Current assets $ 6,221 Property, plant and equipment 2,567 Other assets 29 Goodwill 34,999 Intangible assets 32,800 Fair value of assets acquired 76,616 Less fair value of liabilities acquired (2,710 ) Purchase price $ 73,906 |
Summary of Carrying Amounts and Weighted Average Lives of Acquired Intangible Assets | The following table summarizes the carrying amounts and weighted average lives of the acquired intangible assets: Carrying Value Weighted Average Amortization Period Customer lists/relationships $ 31,000 15.0 Trademarks, tradenames, and other intangibles 1,800 5.0 Total $ 32,800 |
Summary of Results of Operations for QTI Included in Consolidated Financial Statements | Results of operations for QTI are included in our consolidated financial statements beginning on July 31, 2019. The amount of net sales and net loss from QTI since the acquisition date that have been included in the Consolidated Statements of (Loss) Earnings are as follows: For the period July 31, 2019 through December 31, 2019 Net sales $ 9,252 Net loss $ (465 ) |
Accounts Receivable, Net (Table
Accounts Receivable, Net (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Receivables [Abstract] | |
Components of Accounts Receivable, Net | The components of accounts receivable, net are as follows: As of December 31, 2021 2020 Accounts receivable, gross $ 83,848 $ 81,745 Less: Allowance for credit losses (1,657 ) (764 ) Accounts receivable, net $ 82,191 $ 80,981 |
Inventories, Net (Tables)
Inventories, Net (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Summary of Inventories, Net | Inventories, net consist of the following: As of December 31, 2021 2020 Finished goods $ 11,955 $ 10,647 Work-in-process 18,878 16,927 Raw materials 28,078 24,893 Less: Inventory reserves (9,405 ) (6,597 ) Inventories, net $ 49,506 $ 45,870 |
Property, Plant and Equipment_2
Property, Plant and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property Plant And Equipment [Abstract] | |
Summary of Property, Plant and Equipment, Net | Property, plant and equipment, net is comprised of the following: As of December 31, 2021 2020 Land and land improvements $ 1,095 $ 1,095 Buildings and improvements 69,614 69,360 Machinery and equipment 247,708 233,743 Less: Accumulated depreciation (221,541 ) (206,761 ) Property, plant and equipment, net $ 96,876 $ 97,437 |
Depreciation Expense | Depreciation expense recorded in the Consolidated Statements of (Loss) Earnings includes the following: For the Years Ended 2021 2020 2019 Depreciation expense $ 17,517 $ 17,615 $ 16,849 |
Retirement Plans (Tables)
Retirement Plans (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Compensation And Retirement Disclosure [Abstract] | |
Summary of Reconciliation of Benefit Obligation, Plan Assets, and Funded Status | The following table provides a reconciliation of benefit obligation, plan assets, and the funded status of the pension plans for U.S. and non-U.S. locations at the measurement dates. U.S. Pension Plans Non-U.S. Pension Plans 2021 2020 2021 2020 Accumulated benefit obligation $ 1,008 $ 230,205 $ 1,957 $ 1,983 Change in projected benefit obligation: Projected benefit obligation at January 1 $ 230,205 $ 220,339 $ 2,686 $ 2,633 Service cost ā ā 26 31 Interest cost 2,861 5,773 17 28 Benefits paid (12,206 ) (14,590 ) (476 ) (285 ) Actuarial (gain) loss (3,533 ) 18,683 44 95 Plan settlements (216,319 ) ā ā ā Foreign exchange impact ā ā 38 184 Projected benefit obligation at December 31 $ 1,008 $ 230,205 $ 2,335 $ 2,686 Change in plan assets: Assets at fair value at January 1 $ 285,675 $ 281,276 $ 1,595 $ 1,419 Actual return on assets (7,967 ) 18,886 28 95 Company contributions 199 103 252 268 Benefits paid (12,206 ) (14,590 ) (476 ) (285 ) Plan settlements (216,319 ) ā ā ā Foreign exchange impact ā ā 22 98 Assets at fair value at December 31 $ 49,382 $ 285,675 $ 1,421 $ 1,595 Funded status (plan assets less projected benefit obligations) $ 48,374 $ 55,470 $ (914 ) $ (1,091 ) * Actual return on plan assets is net of expected investment expenses and certain administrative expenses. The measurement dates for the post-retirement life insurance plan were December 31, 2021, and 2020. The following table provides a reconciliation of benefit obligation, plan assets, and the funded status of the post-retirement life insurance plan at those measurement dates. Post-Retirement Life Insurance Plan 2021 2020 Accumulated benefit obligation $ 5,231 $ 5,376 Change in projected benefit obligation: Projected benefit obligation at January 1 $ 5,376 $ 4,766 Service cost 1 1 Interest cost 80 122 Benefits paid (151 ) (154 ) Actuarial (gain) loss (75 ) 641 Projected benefit obligation at December 31 $ 5,231 $ 5,376 Change in plan assets: Assets at fair value at January 1 $ ā $ ā Actual return on assets ā ā Company contributions 151 154 Benefits paid (151 ) (154 ) Other ā ā Assets at fair value at December 31 $ ā $ ā Funded status (plan assets less projected benefit obligations) $ (5,231 ) $ (5,376 ) |
Components of Prepaid (Accrued) Cost | The components of the prepaid (accrued) cost of the domestic and foreign pension plans are classified in the following lines in the Consolidated Balance Sheets at December 31: U.S. Pension Plans Non-U.S. Pension Plans 2021 2020 2021 2020 Prepaid pension asset $ 49,382 $ 56,642 $ ā $ ā Accrued expenses and other liabilities (100 ) (100 ) ā ā Long-term pension obligations (908 ) (1,072 ) (914 ) (1,091 ) Net prepaid (accrued) cost $ 48,374 $ 55,470 $ (914 ) $ (1,091 ) The components of the accrued cost of the post-retirement life insurance plan are classified in the following lines in the Consolidated Balance Sheets at December 31: Post-Retirement Life Insurance Plan 2021 2020 Accrued expenses and other liabilities $ (489 ) $ (451 ) Long-term pension obligations (4,742 ) (4,924 ) Total accrued cost $ (5,231 ) $ (5,375 ) |
Summary of Accumulated Other Comprehensive loss | We have also recorded the following amounts to accumulated other comprehensive loss for the U.S. and non-U.S. pension plans, net of tax: U.S. Pension Plans Non-U.S. Pension Plans Unrecognized Loss Unrecognized Loss Balance at January 1, 2020 $ 88,830 $ 1,900 Amortization of retirement benefits, net of tax (4,995 ) (146 ) Net actuarial gain 7,402 14 Foreign exchange impact ā 133 Balance at January 1, 2021 $ 91,237 $ 1,901 Amortization of retirement benefits, net of tax (2,851 ) (152 ) Net actuarial gain (loss) 3,777 27 Settlement charges (91,851 ) ā Foreign exchange impact ā 27 Balance at December 31, 2021 $ 312 $ 1,803 We have recorded the following amounts to accumulated other comprehensive loss for the post-retirement life insurance plan, net of tax: Unrecognized Gain Balance at January 1, 2020 $ (608 ) Amortization of retirement benefits, net of tax 64 Net actuarial gain 493 Balance at January 1, 2021 $ (51 ) Amortization of retirement benefits, net of tax 0 Net actuarial loss (58 ) Balance at December 31, 2021 $ (109 ) |
Summary of Projected Benefit Obligation Accumulated Benefit Obligation and Fair Value of Plan Assets | The projected benefit obligation, accumulated benefit obligation and fair value of plan assets for those pension plans with accumulated benefit obligation in excess of fair value of plan assets is shown below: As of December 31, 2021 2020 Projected benefit obligation $ 3,343 $ 3,859 Accumulated benefit obligation $ 2,965 $ 3,155 Fair value of plan assets $ 1,421 $ 1,595 |
Summary of Net Pension and Postretirement Expense | Net pension expense includes the following components: Years Ended December 31, Years Ended December 31, U.S. Pension Plans Non-U.S. Pension Plans 2021 2020 2019 2021 2020 2019 Service cost $ ā $ ā $ ā $ 26 $ 31 $ 37 Interest cost 2,861 5,773 7,724 17 28 31 Expected return on plan assets (1) (474 ) (9,817 ) (12,187 ) (17 ) (16 ) (17 ) Amortization of unrecognized loss 3,703 6,488 5,246 184 174 170 Settlement charges 126,269 ā ā ā ā ā Net expense $ 132,359 $ 2,444 $ 783 $ 210 $ 217 $ 221 Weighted-average actuarial assumptions (2) Benefit obligation assumptions: Discount rate 2.46 % 2.26 % 3.15 % 0.63 % 0.63 % 1.00 % Rate of compensation increase N/A N/A N/A 3.00 % 3.00 % 3.00 % Pension income/expense assumptions: Discount rate 2.10 % 3.15 % 4.30 % 0.63 % 0.63 % 1.13 % Expected return on plan assets (1) 1.44 % 3.76 % 4.61 % 0.63 % 0.63 % 1.13 % Rate of compensation increase N/A N/A N/A 3.00 % 3.00 % 3.00 % (1) Expected return on plan assets is net of expected investment expenses and certain administrative expenses. (2) During the fourth quarter of each year, we review our actuarial assumptions in light of current economic factors to determine if the assumptions need to be adjusted. 2020 assumptions reflect termination basis accounting. Net post-retirement expense includes the following components: Post-Retirement Life Insurance Plan Years Ended December 31, 2021 2020 2019 Service cost $ 1 $ 1 $ 1 Interest cost 80 122 170 Amortization of unrecognized gain ā (84 ) (166 ) Net expense $ 81 $ 39 $ 5 Weighted-average actuarial assumptions (1) Benefit obligation assumptions: Discount rate 2.66 % 2.27 % 3.09 % Rate of compensation increase N/A N/A N/A Pension income/post-retirement expense assumptions: Discount rate 2.27 % 3.09 % 4.26 % Rate of compensation increase N/A N/A N/A (1) During the fourth quarter of each year, we review our actuarial assumptions in light of current economic factors to determine if the assumptions need to be adjusted. |
Summary of Asset Allocation and Target Allocation Plan | Our pension plan asset allocation at December 31, 2021, and 2020, and target allocation for 2022 by asset category are as follows: Target Allocations Percentage of Plan Assets at December 31, Asset Category 2022 2021 2020 Equity securities 0% 0% 13% Fixed income/Debt securities 100% 100% 83% Other 0% 0% 4% Total 100% 100% 100% |
Summary of Fair Values of Pension Plan | The following table summarizes the fair values of our pension plan assets: As of December 31, 2021 2020 Equity securities - U.S. holdings (1) $ 8 $ 7 Bond funds - government (4) (6) ā 53,239 Bond funds - other (5) (6) 31,380 173,853 Cash and cash equivalents (2) 19,415 53,379 Partnerships (3) ā 6,792 Total fair value of plan assets $ 50,803 $ 287,270 |
Summary of Categories in Fair Value Hierarchy | The fair values at December 31, 2021, are classified within the following categories in the fair value hierarchy: Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Equity securities - U.S. holdings (1) $ 8 $ ā $ ā $ 8 Bond funds - other (5) 31,380 ā ā 31,380 Cash and cash equivalents (2) 19,415 ā ā 19,415 Total $ 50,803 $ ā $ ā $ 50,803 The fair values at December 31, 2020, are classified within the following categories in the fair value hierarchy: Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Not Leveled Total Equity securities - U.S. holdings (1) $ 7 $ ā $ ā $ ā $ 7 Bond funds - government (4) (6) ā ā ā 53,239 53,239 Bond funds - other (5) (6) ā ā ā 173,853 173,853 Cash and cash equivalents (2) 53,379 ā ā ā 53,379 Partnerships (3) ā ā 6,792 ā 6,792 Total $ 53,386 $ ā $ 6,792 $ 227,092 $ 287,270 (1) Comprised of common stocks of companies in various industries. The Pension Plan fund manager may shift investments from value to growth strategies or vice-versa, from small cap to large cap stocks or vice-versa, in order to meet the Pension Plan's investment objectives, which are to provide for a reasonable amount of long-term growth of capital without undue exposure to volatility and protect the assets from erosion of purchasing power. (2) Comprised of investment grade short-term investment and money-market funds. (3) Comprised of partnerships that invest in various U.S. and international industries. (4) Comprised of long-term government bonds with a minimum maturity of 10 years and zero-coupon Treasury securities ("Treasury Strips") with maturities greater than 20 years. (5) Comprised predominately of investment grade U.S. corporate bonds with various maturities and U.S. high-yield corporate bonds; emerging market debt (local currency sovereign bonds, U.S. dollar-denominated sovereign bonds and U.S. dollar-denominated corporate bonds); and U.S. bank loans. ( 6 ) Comprised of investments that are measured at fair value using the NAV per share practical expedient. In accordance with the provisions of ASC 820-10, these investments have not been classified in the fair value hierarchy. The fair value amount not leveled is presented to allow reconciliation of the fair value hierarchy to total fund pension plan assets. |
Summary of Reconciliation of Level 3 Partnership Assets Within Fair Value Hierarchy | The table below reconciles the Level 3 partnership assets within the fair value hierarchy: Amount Fair value of Level 3 partnership assets at January 1, 2020 $ 7,539 Capital contributions 44 Realized and unrealized loss (269 ) Capital distributions (522 ) Fair value of Level 3 partnership assets at December 31, 2020 $ 6,792 Capital contributions 13 Realized and unrealized loss (2,075 ) Capital distributions (4,730 ) Fair value of Level 3 partnership assets at December 31, 2021 $ ā |
Summary of Estimated Future Benefit Payments | Expected benefit payments under the defined benefit pension plans and the postretirement benefit plan, for the next five years subsequent to 2021 and in the aggregate for the following five years are as follows: U.S. Pension Plans Non-U.S. Pension Plans Post- Retirement Life Insurance Plan 2022 $ 100 $ 54 $ 489 2023 96 58 455 2024 92 73 425 2025 88 81 398 2026 84 89 373 2027-2030 349 667 1,571 Total $ 809 $ 1,022 $ 3,711 |
Summary of 401K and Other Plan Expense | Expenses related to defined contribution plans include the following: Years Ended December 31, 2021 2020 2019 401(k) and other defined contribution plan expense $ 3,242 $ 1,636 $ 3,125 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Summary of Other Intangible Assets | Other intangible assets, net consist of the following components: As of December 31, 2021 Gross Carrying Amount Accumulated Amortization Net Amount Weighted Average Remaining Amortization Period (in years) Other intangible assets: Customer lists / relationships $ 96,889 $ (49,213 ) $ 47,676 8.9 Technology and other intangibles 47,441 (25,229 ) 22,212 6.8 Other intangible assets, net $ 144,330 $ (74,442 ) $ 69,888 8.3 Amortization expense for the year ended December 31, 2021 $ 9,413 As of December 31, 2020 Gross Carrying Amount Accumulated Amortization Net Amount Other intangible assets: Customer lists / relationships $ 97,355 $ (44,002 ) $ 53,353 Technology and other intangibles 47,301 (21,533 ) 25,768 Other intangible assets, net $ 144,656 $ (65,535 ) $ 79,121 Amortization expense for the year ended December 31, 2020 $ 9,055 Amortization expense for the year ended December 31, 2019 $ 7,770 |
Summary of Estimated Amortization Expense | The estimated amortization expense for the next five years and thereafter is as follows: Amortization expense 2022 $ 9,176 2023 7,170 2024 7,008 2025 6,787 2026 6,752 Thereafter 32,995 Total future amortization expense $ 69,888 |
Summary Changes in Net Carrying Value Amount of Goodwill | Changes in the net carrying amount of goodwill were as follows: Total Goodwill as of December 31, 2019 $ 106,056 Increase due to acquisition 3,441 Goodwill as of December 31, 2020 $ 109,497 Increase due to acquisition 430 Decrease from purchase accounting adjustments (129 ) Goodwill as of December 31, 2021 $ 109,798 |
Costs Associated with Exit an_2
Costs Associated with Exit and Restructuring Activities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Restructuring And Related Activities [Abstract] | |
Schedule of Restructuring Charges | Restructuring charges are reported as a separate line within operating earnings in the Consolidated Statements of (Loss) Earnings. Total restructuring charges were: Years Ended December 31, 2021 2020 2019 Restructuring charges $ 1,687 $ 1,830 $ 7,448 |
Restructuring Reserve Activity | The following table displays the restructuring liability activity for all plans the year ended December 31, 2021: Restructuring liability at January 1, 2021 $ 1,363 Restructuring charges 1,687 Cost paid (1,903 ) Other activities (1) (185 ) Restructuring liability at December 31, 2021 $ 962 (1) Other charges include the effects of currency translation, non-cash asset write-downs, travel, legal and other charges. |
Accrued Expenses and Other Li_2
Accrued Expenses and Other Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Payables And Accruals [Abstract] | |
Components of Accrued Expenses and Other Liabilities | The components of accrued expenses and other liabilities are as follows: As of December 31, 2021 2020 Accrued product-related costs $ 3,188 $ 4,470 Accrued income taxes 6,761 7,320 Accrued property and other taxes 2,370 2,478 Accrued professional fees 1,629 1,663 Accrued customer-related liabilities 3,254 3,815 Dividends payable 1,289 1,291 Remediation reserves 10,979 10,642 Derivative liabilities 437 671 Other accrued liabilities 6,811 5,821 Total accrued expenses and other liabilities $ 36,718 $ 38,171 |
Contingencies (Tables)
Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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 in the Consolidated Balance Sheets is comprised of the following: Years Ended December 31, 2021 2020 2019 Balance at beginning of period $ 10,642 $ 11,444 $ 11,274 Remediation expense 2,254 2,769 2,602 Remediation payments (1,929 ) (3,639 ) (2,455 ) Other activity (1) 12 68 23 Balance at end of the period $ 10,979 $ 10,642 $ 11,444 (1) Other activity includes currency translation adjustments not recorded through remediation expense |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Summary of Lease Expense | Components of lease expense for the years ended December 31, 2021, 2020, and 2019 were as follows: Years Ended December 31, 2021 2020 2019 Operating lease cost $ 5,144 $ 4,763 $ 4,342 Short-term lease cost 1,403 1,015 1,013 Total lease cost $ 6,547 $ 5,778 $ 5,355 |
Summary of Supplemental Cash Flow Information Related to Leases | Supplemental cash flow information related to leases was as follows: Years Ended December 31, 2021 2020 2019 Cash paid for amounts included in the measurement of lease obligations $ 3,666 $ 4,654 $ 3,957 Leased assets obtained in exchange for new operating lease obligations $ 1,253 $ 1,678 $ 5,000 |
Summary of Supplemental Balance Sheet Information Related to Leases | Supplemental balance sheet information related to leases was as follows: As of December 31, 2021 2020 Operating lease obligations $ 3,393 $ 3,294 Long-term operating lease obligations 21,354 23,163 Total lease liabilities $ 24,747 $ 26,457 Weighted-average remaining lease terms (years) 7.21 7.88 Weighted-average discount rate 6.27 % 6.40 % |
Summary of Remaining Maturity of Existing Lease Liabilities | Remaining maturity of our existing lease liabilities as of December 31, 2021 is as follows: Operating Leases (1) 2022 $ 4,826 2023 4,567 2024 4,402 2025 3,759 2026 2,815 Thereafter 11,525 Total $ 31,894 Less: interest (7,147 ) Present value of lease payments $ 24,747 (1) Operating lease payments include $651 of payments related to options to extend lease terms that are reasonably expected to be exercised. |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Summary of Long-Term Debt | Long-term debt was comprised of the following: As of December 31, 2021 2020 Total credit facility availability $ 400,000 $ 300,000 Balance outstanding 50,000 54,600 Standby letters of credit 1,740 1,740 Amount available, subject to covenant restrictions $ 348,260 $ 243,660 Weighted-average interest rate 1.16 % 1.92 % |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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 Consolidated Balance Sheets as of December 31, 2021, are shown in the following table: As of December 31, 2021 2020 Interest rate swaps reported in Other current assets $ ā $ ā Interest rate swaps reported in Accrued expenses and other liabilities $ (437 ) $ (671 ) Interest rate swaps reported in Other long-term obligations $ (353 ) $ (1,546 ) Foreign currency hedges reported in Other current assets $ 135 $ 1,125 |
Schedule of Effect of Derivative Instruments on Consolidated Statements of (Loss) Earnings | The effect of derivative instruments on the Consolidated Statements of (Loss) Earnings is as follows: Years Ended December 31, 2021 2020 2019 Foreign Exchange Contracts: Amounts reclassified from AOCI to earnings: Net sales $ ā $ (128 ) $ ā Cost of goods sold 1,384 (754 ) 860 Selling, general and administrative expense ā (5 ) 92 Total amounts reclassified from AOCI to earnings 1,384 (887 ) 952 Gain recognized in other expense for hedge ineffectiveness ā 3 ā Total derivative gain (loss) on foreign exchange contracts recognized in earnings $ 1,384 $ (884 ) $ 952 Interest Rate Swaps: (Expense) benefit recorded in interest expense $ (744 ) $ (432 ) $ 491 Total gains (losses) on derivatives $ 640 $ (1,316 ) $ 1,443 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive (Loss) Income (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Components of Accumulated Other Comprehensive (loss) Income | The components of accumulated other comprehensive (loss) income for the year ended December 31, 2021 are as follows: As of December 31, 2020 Gain (Loss) Recognized in OCI (Gain) Loss reclassified from AOCI to earnings As of December 31, 2021 Changes in fair market value of derivatives: Gross $ (1,038 ) $ 1,043 $ (640 ) $ (635 ) Income tax benefit (expense) 240 (240 ) 147 147 Net (798 ) 803 (493 ) (488 ) Changes in unrealized pension cost: Gross (128,004 ) (4,951 ) 130,211 (2,744 ) Income tax benefit (expense) 34,917 1,139 (35,318 ) 738 Net (93,087 ) (3,812 ) 94,893 (2,006 ) Cumulative translation adjustment: Gross (2,036 ) 4 ā (2,032 ) Income tax benefit (expense) ā ā ā ā Net (2,036 ) 4 ā (2,032 ) Total accumulated other comprehensive (loss) income $ (95,921 ) $ (3,005 ) $ 94,400 $ (4,526 ) The components of accumulated other comprehensive (loss) income for the year ended December 31, 2020 are as follows: As of December 31, 2019 Gain (Loss) Recognized in OCI (Gain) Loss reclassified from AOCI to earnings As of December 31, 2020 Changes in fair market value of derivatives: Gross $ 659 $ (3,015 ) $ 1,318 $ (1,038 ) Income tax (expense) benefit (150 ) 684 (294 ) 240 Net 509 (2,331 ) 1,024 (798 ) Changes in unrealized pension cost: Gross (124,140 ) ā (3,864 ) (128,004 ) Income tax benefit 34,018 ā 899 34,917 Net (90,122 ) ā (2,965 ) (93,087 ) Cumulative translation adjustment: Gross (2,211 ) 175 ā (2,036 ) Income tax benefit (expense) 98 (98 ) ā ā Net (2,113 ) 77 ā (2,036 ) Total accumulated other comprehensive (loss) income $ (91,726 ) $ (2,254 ) $ (1,941 ) $ (95,921 ) |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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 December 31, 2021 2020 Preferred Stock Par value per share No par value No par value Shares authorized 25,000,000 25,000,000 Shares outstanding ā ā Common Stock Par value per share No par value No par value Shares authorized 75,000,000 75,000,000 Shares issued 57,245,060 57,076,410 Shares outstanding 32,178,715 32,276,787 Treasury stock Shares held 25,066,345 24,799,623 |
Summary of Common Shares Outstanding | A roll forward of common shares outstanding is as follows: As of December 31, 2021 2020 Balance at beginning of the year 32,276,787 32,472,406 Repurchases (266,722 ) (342,731 ) Restricted stock unit issuances 168,650 147,112 Balance at end of period 32,178,715 32,276,787 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Compensation Expense | The following table summarizes the compensation expense included in selling, general and administrative expenses in the Consolidated Statements of (Loss) Earnings related to stock-based compensation plans: Years Ended December 31, 2021 2020 2019 Service-Based RSUs $ 2,714 $ 2,601 $ 2,207 Performance-Based RSUs 3,113 539 2,553 Cash-settled awards 278 277 255 Total $ 6,105 $ 3,417 $ 5,015 Income tax benefit 1,404 786 1,133 Net $ 4,701 $ 2,631 $ 3,882 |
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 expense at December 31, 2021 Weighted- average period Service-Based RSUs $ 2,021 1.23 years Performance-Based RSUs 3,704 1.77 years Total $ 5,725 1.58 years |
Summary of Status of Plans | The following table summarizes the status of these plans as of December 31, 2021: 2018 Plan 2014 Plan 2009 Plan 2004 Plan Directors' Plan Awards originally available to be granted 2,500,000 1,500,000 3,400,000 6,500,000 N/A Performance stock options outstanding ā ā ā ā ā Maximum potential RSU and cash settled awards outstanding 638,268 35,100 45,200 14,545 4,722 Maximum potential awards outstanding 638,268 35,100 45,200 14,545 4,722 RSUs and cash settled awards vested and released 127,313 ā ā ā ā Awards available to be granted 1,734,419 ā ā ā ā |
Summary of RSU Activity | A summary of RSU activity for the year ended December 31, 2021 is presented below: Units Weighted Average Grant Date Fair Value Weighted Average Remaining Contractual Term Aggregate Intrinsic Value Outstanding at January 1, 2021 367,428 $ 21.28 Granted 93,565 33.81 Released (161,626 ) 21.41 Forfeited (16,151 ) 29.11 Outstanding at December 31, 2021 283,216 $ 24.91 17.88 $ 10,320 Releasable at December 31, 2021 132,667 $ 17.53 29.92 $ 4,872 |
Schedule of Weighted Average Grant Date Fair Value and Intrinsic Value of RSU's | Years Ended December 31, 2021 2020 2019 Weighted-average grant date fair value $ 33.81 $ 27.94 $ 28.61 Intrinsic value of RSUs released $ 5,408 $ 2,503 $ 2,155 |
Summary of Non-vested RSU Activity | A summary of non-vested RSU activity for the year ended December 31, 2021 is presented below: RSUs Weighted Average Grant Date Fair Value Nonvested at January 1, 2021 163,854 $ 28.14 Granted 93,565 33.81 Vested (90,719 ) 28.39 Forfeited (16,151 ) 29.11 Nonvested at December 31, 2021 150,549 $ 31.42 |
Schedule of Performance-Based RSUs | A summary of PSU activity for the year ended December 31, 2021 is presented below: Units Weighted Average Grant Date Fair Value Weighted Average Remaining Contractual Term Aggregate Intrinsic Value Outstanding at January 1, 2021 225,559 $ 28.97 Granted 90,337 34.38 Added by performance factor 18,107 28.33 Released (53,145 ) 28.33 Forfeited (43,091 ) 27.71 Outstanding at December 31, 2021 237,767 $ 31.35 1.74 $ 8,731 Releasable at December 31, 2021 ā $ ā $ ā |
Schedule of Performance Awards Outstanding | The following table summarizes each grant of performance awards outstanding at December 31, 2021: Description Grant Date Vesting Year Vesting Dependency Target Units Outstanding Maximum Number of Units to be Granted 2019-2021 Performance RSUs February 7, 2019 2021 35% RTSR, 35% sales growth, 46,928 93,856 2019 Supplemental Performance RSUs February 7, 2019 2021 Succession Planning Targets 6,945 13,890 2020 - 2022 QTI Performance RSUs September 24, 2019 2022 50% EBITDA growth, 1,750 3,500 2020 - 2022 Performance RSUs February 6, 2020 2022 25% RTSR, 40% sales growth, 59,475 118,950 2021 - 2023 Performance RSUs Varies 2023 25% RTSR, 40% sales growth, 69,669 139,338 Focus 2025 Performance RSUs Varies 2024 Cumulative revenues of $750 million over a trailing four-quarter period 53,000 53,000 Total 237,767 422,534 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Summary of Financial Liabilities and Assets Measured at Fair Value on Recurring Basis | The table below summarizes the financial liabilities and assets that were measured at fair value on a recurring basis as of December 31, 2021 and the gain (loss) recorded during the year ended December 31, 2021: (Liability) Asset Carrying Value at December 31, 2021 Quoted Prices in Active Markets for Identical (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (Loss) Gain for Year Ended December 31, 2021 Interest rate swap $ (790 ) $ ā $ (790 ) $ ā $ (744 ) Foreign currency hedges $ 135 $ ā $ 135 $ ā $ 1,384 Contingent consideration $ (1,200 ) $ ā $ ā $ (1,200 ) $ ā The table below summarizes the financial assets that were measured at fair value on a recurring basis as of December 31, 2020 and the (loss) recorded during the year ended December 31, 2020: (Liability) Asset Carrying Value at December 31, 2020 Quoted Prices in Active Markets for Identical (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (Loss) for Year Ended December 31, 2020 Interest rate swap $ (2,217 ) $ ā $ (2,217 ) $ ā $ (432 ) Foreign currency hedges $ 1,125 $ ā $ 1,125 $ ā $ (887 ) Contingent consideration $ (2,000 ) $ ā $ ā $ (2,000 ) $ ā |
Roll-forward of the Contingent Consideration | A roll-forward of the contingent consideration is as follows: Contingent Consideration Balance at December 31, 2020 $ 2,000 Settled in cash (650 ) Reclassified to payable in accrued expenses and other liabilities (150 ) Balance at December 31, 2021 in accrued expenses and other liabilities $ 1,200 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
(Loss) Earnings Before Income Taxes | (Loss) earnings before income taxes consist of the following: Years Ended December 31, 2021 2020 2019 U.S. $ (128,699 ) $ (7,101 ) $ 15,103 Non-U.S. 67,819 52,580 35,163 Total $ (60,880 ) $ 45,479 $ 50,266 |
Significant Components of Income Tax Provision/(Benefit) | Significant components of income tax provision/(benefit) are as follows: Years Ended December 31, 2021 2020 2019 Current: U.S. $ 36 $ 211 $ (391 ) Non-U.S. 11,932 11,275 10,666 Total Current 11,968 11,486 10,275 Deferred: U.S. (35,979 ) (2,815 ) 558 Non-U.S. 4,997 2,122 3,287 Total Deferred (30,982 ) (693 ) 3,845 Total provision for income taxes $ (19,014 ) $ 10,793 $ 14,120 |
Significant Components of Deferred Tax Assets and Liabilities | Significant components of our deferred tax assets and liabilities are as follows: As of December 31, 2021 2020 Post-retirement benefits $ 1,226 $ 1,259 Inventory reserves 69 477 Loss carry-forwards 5,070 5,128 Credit carry-forwards 19,665 17,401 Accrued expenses 4,917 5,693 Research expenditures 19,226 18,893 Operating lease liabilities 5,643 6,012 Stock compensation 1,970 1,969 Foreign exchange loss 2,052 2,166 Other 769 872 Gross deferred tax assets 60,607 59,870 Depreciation and amortization 13,386 13,004 Pensions 10,958 12,557 Operating lease assets 5,307 5,703 Subsidiaries' unremitted earnings 1,947 3,046 Gross deferred tax liabilities 31,598 34,310 Net deferred tax assets 29,009 25,560 Deferred tax asset valuation allowance (9,489 ) (8,320 ) Total net deferred tax assets $ 19,520 $ 17,240 The deferred tax assets and deferred tax liabilities, classified as non-current, are as follows below: As of December 31, 2021 2020 Non-current deferred tax assets $ 25,414 $ 24,250 Non-current deferred tax liabilities $ (5,894 ) $ (7,010 ) Total net deferred tax assets $ 19,520 $ 17,240 |
Reconciliation of Effective Income Taxes Rate | The following table reconciles taxes at the U.S. federal statutory rate to the effective income tax rate: Years Ended December 31, 2021 2020 2019 Taxes at the U.S. statutory rate 21.0% 21.0% 21.0% State income taxes, net of federal income tax benefit 4.3% (0.1)% 0.4% Non-U.S. earnings taxed at rates different than the U.S. statutory rate 3.1% (0.9)% 1.3% Foreign source earnings, net of associated foreign tax credits 0.1% (0.7)% 0.3% Benefit of tax credits 0.8% (0.7)% (1.5)% Non-deductible expenses (1.6)% (0.5)% 4.1% Stock compensation - excess tax benefits 0.7% (0.1)% (1.1)% Adjustment to valuation allowances (3.1)% 1.6% (0.4)% Other changes in tax laws and rates ā ā 0.1% Change in unrecognized tax benefits 0.4% (0.7)% 3.3% Impacts of unremitted foreign earnings (4.5)% 5.2% 1.3% Release of disproportionate tax effects of OCI 8.8% ā ā Other 1.2% (0.4)% (0.7)% Effective income tax rate 31.2% 23.7% 28.1% |
Reconciliation of Unrecognized Tax Benefits | A reconciliation of the beginning and ending unrecognized tax benefits is provided below: As of December 31, 2021 2020 Balance at January 1 $ 3,128 $ 5,016 Increase related to current year tax positions 70 880 Decrease related to prior year tax positions (237 ) (1,156 ) Decrease related to lapse in statute of limitation (125 ) ā Decrease related to settlements with taxing authorities (640 ) (1,612 ) Balance at December 31 $ 2,196 $ 3,128 |
Geographic Data (Tables)
Geographic Data (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Schedule of Revenue and Long-Lived Assets by Geographic Areas | Financial information relating to our operations by geographic area were as follows: Years Ended December 31, Net Sales 2021 2020 2019 United States $ 297,322 $ 241,823 $ 279,904 China 106,700 88,129 87,342 Singapore 37,742 31,985 32,957 Czech Republic 36,252 27,143 33,214 Taiwan 27,768 21,849 19,810 Other non-U.S. 7,141 13,137 15,772 Consolidated net sales $ 512,925 $ 424,066 $ 468,999 Sales are attributed to countries based upon the origin of the sale. Years Ended December 31, Long-Lived Tangible Assets 2021 2020 United States $ 37,409 $ 39,368 China 30,461 30,240 Mexico 13,311 12,441 Czech Republic 9,728 9,856 Taiwan 5,679 5,071 Other non-U.S 288 461 Consolidated long-lived assets $ 96,876 $ 97,437 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) | Oct. 01, 2021 | Oct. 01, 2020 | Sep. 30, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Summary Of Significant Accounting Policies [Line Items] | ||||||
Maturity period of highly liquid investments | 3 months | |||||
Goodwill impairment | $ 0 | $ 0 | ||||
Revaluation of contingent liabilities | $ 1,900,000 | |||||
Restructuring non-cash charges | 300,000 | $ 0 | $ 300,000 | $ 1,704,000 | ||
Antidilutive securities | 0 | 26,140 | 22,040 | |||
ASU No. 2019-12 | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Change in accounting principle, accounting standards update, adopted | true | |||||
Change in accounting principle, accounting standards update, adoption date | Jan. 1, 2021 | |||||
Change in accounting principle, accounting standards update, immaterial effect | true | |||||
Selling, General and Administrative Expenses | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Impairment of other intangible assets and long-lived assets | $ 1,016,000 | |||||
In process research and development | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Impairment charges | $ 2,200,000 | |||||
Minimum | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Percentage of tax benefit likely to be realized upon ultimate settlement with related tax authority | 50.00% | |||||
Minimum | Building and Building Improvements | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Property, Plant and Equipment, useful lives | 10 years | |||||
Minimum | Machinery and Equipment | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Property, Plant and Equipment, useful lives | 3 years | |||||
Minimum | Software and Software Development | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Property, Plant and Equipment, useful lives | 2 years | |||||
Maximum | Building and Building Improvements | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Property, Plant and Equipment, useful lives | 45 years | |||||
Maximum | Machinery and Equipment | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Property, Plant and Equipment, useful lives | 15 years | |||||
Maximum | Software and Software Development | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Property, Plant and Equipment, useful lives | 15 years |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Schedule of Net Sales to Significant Customers as Percentage of Total Net Sales (Details) - Revenue Benchmark - Customer Concentration Risk | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cummins Inc. | |||
Concentration Risk [Line Items] | |||
Concentration of risk, percentage | 15.00% | 13.10% | 16.10% |
Toyota Motor Corporation | |||
Concentration Risk [Line Items] | |||
Concentration of risk, percentage | 12.40% | 13.40% | 11.60% |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Summary of Amounts to be Received From Customers (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Other Current Assets | ||
Research and Development Expense [Abstract] | ||
Cost of molds, dies and other tools included in other current assets | $ 4,497 | $ 4,895 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Summary of Antidilutive Securities (Details) - shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Anti-dilutive Securities | |||
Antidilutive securities | 0 | 26,140 | 22,040 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Summary of Foreign Currencies (Losses) Gains Recorded in Consolidated Statement of (Loss) Earnings (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Other Nonoperating Income (Expense) | |||
Foreign Currencies | |||
Foreign currency (losses) gains | $ (3,305) | $ 5,316 | $ (1,797) |
Revenue Recognition - Summary o
Revenue Recognition - Summary of Disaggregated Revenues (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disaggregation of Revenue [Line Items] | |||
Revenues | $ 512,925 | $ 424,066 | $ 468,999 |
Transportation | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 284,080 | 241,445 | |
Industrial | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 133,371 | 104,224 | |
Medical | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 48,159 | 39,070 | |
Aerospace and Defense | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | $ 47,315 | $ 39,327 |
Business Acquisitions - Additio
Business Acquisitions - Additional Information (Details) - USD ($) | Dec. 30, 2020 | Dec. 31, 2019 | Jul. 31, 2019 |
Sensor Scientific, Inc. | |||
Business Acquisition [Line Items] | |||
Percentage of outstanding shares acquired | 100.00% | ||
Purchase price of fair values of assets and liabilities acquired | $ 10,221,000 | ||
Contingent consideration | $ 2,000,000 | ||
Quality Thermistor, Inc. | |||
Business Acquisition [Line Items] | |||
Percentage of outstanding shares acquired | 100.00% | ||
Purchase price of fair values of assets and liabilities acquired | $ 73,906,000 | ||
Contingent consideration | $ 1,056,000 | 1,056,000 | |
Purchase price | 75,000,000 | ||
Quality Thermistor, Inc. | Maximum | |||
Business Acquisition [Line Items] | |||
Contingent earn out based on sales performance objectives | $ 5,000,000 |
Business Acquisitions - Summary
Business Acquisitions - Summary of Consideration Paid and Fair Values of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Dec. 30, 2020 | Dec. 31, 2019 | Jul. 31, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Consideration Paid | ||||||
Cash paid, net of cash acquired | $ 255 | $ 8,309 | $ 73,906 | |||
Fair Values | ||||||
Goodwill | $ 106,056 | $ 109,798 | $ 109,497 | $ 106,056 | ||
Sensor Scientific, Inc. | ||||||
Consideration Paid | ||||||
Cash paid, net of cash acquired | $ 8,221 | |||||
Contingent consideration | 2,000 | |||||
Purchase price | 10,221 | |||||
Fair Values | ||||||
Current assets | 2,551 | |||||
Property, plant and equipment | 67 | |||||
Other assets | 14 | |||||
Goodwill | 3,321 | |||||
Intangible assets | 5,340 | |||||
Fair value of assets acquired | 11,293 | |||||
Less fair value of liabilities acquired | (1,072) | |||||
Purchase price | $ 10,221 | |||||
Quality Thermistor, Inc. | ||||||
Consideration Paid | ||||||
Cash paid, net of cash acquired | $ 72,850 | |||||
Contingent consideration | $ 1,056 | 1,056 | ||||
Purchase price | 73,906 | |||||
Fair Values | ||||||
Current assets | 6,221 | |||||
Property, plant and equipment | 2,567 | |||||
Other assets | 29 | |||||
Goodwill | 34,999 | |||||
Intangible assets | 32,800 | |||||
Fair value of assets acquired | 76,616 | |||||
Less fair value of liabilities acquired | (2,710) | |||||
Purchase price | $ 73,906 |
Business Acquisitions - Summa_2
Business Acquisitions - Summary of Consideration Paid and Fair Values of Assets Acquired and Liabilities Assumed (Parenthetical) (Details) - USD ($) $ in Thousands | Dec. 30, 2020 | Jul. 31, 2019 |
Sensor Scientific, Inc. | ||
Business Acquisition [Line Items] | ||
Cash acquired from acquisition | $ 470 | |
Quality Thermistor, Inc. | ||
Business Acquisition [Line Items] | ||
Cash acquired from acquisition | $ 567 |
Business Acquisitions - Summa_3
Business Acquisitions - Summary of Carrying Amounts and Weighted Average Lives of Acquired Intangible Assets (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Sensor Scientific, Inc. | |
Acquired Finite Lived Intangible Assets [Line Items] | |
Carrying Value | $ 5,340 |
Sensor Scientific, Inc. | Customer lists/relationships | |
Acquired Finite Lived Intangible Assets [Line Items] | |
Carrying Value | $ 5,200 |
Weighted Average Amortization Period | 11 years |
Sensor Scientific, Inc. | Technology and other intangibles | |
Acquired Finite Lived Intangible Assets [Line Items] | |
Carrying Value | $ 140 |
Weighted Average Amortization Period | 3 years |
Quality Thermistor, Inc. | |
Acquired Finite Lived Intangible Assets [Line Items] | |
Carrying Value | $ 32,800 |
Quality Thermistor, Inc. | Customer lists/relationships | |
Acquired Finite Lived Intangible Assets [Line Items] | |
Carrying Value | $ 31,000 |
Weighted Average Amortization Period | 15 years |
Quality Thermistor, Inc. | Technology and other intangibles | |
Acquired Finite Lived Intangible Assets [Line Items] | |
Carrying Value | $ 1,800 |
Weighted Average Amortization Period | 5 years |
Business Acquisitions - Summa_4
Business Acquisitions - Summary of Results of Operations for QTI Included in Consolidated Financial Statements (Details) $ in Thousands | 5 Months Ended |
Dec. 31, 2019USD ($) | |
Financial Results [Abstract] | |
Net sales | $ 9,252 |
Net loss | $ (465) |
Accounts Receivable, Net - Comp
Accounts Receivable, Net - Components of Accounts Receivable, Net (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Receivables [Abstract] | ||
Accounts receivable, gross | $ 83,848 | $ 81,745 |
Less: Allowance for credit losses | (1,657) | (764) |
Accounts receivable, net | $ 82,191 | $ 80,981 |
Inventories, Net - Summary of I
Inventories, Net - Summary of Inventories, Net (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 11,955 | $ 10,647 |
Work-in-process | 18,878 | 16,927 |
Raw materials | 28,078 | 24,893 |
Less: Inventory reserves | (9,405) | (6,597) |
Inventories, net | $ 49,506 | $ 45,870 |
Property, Plant and Equipment_3
Property, Plant and Equipment, Net - Summary of Property, Plant and Equipment, Net (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Property Plant And Equipment [Line Items] | ||
Less: Accumulated depreciation | $ (221,541) | $ (206,761) |
Property, plant and equipment, net | 96,876 | 97,437 |
Land and Land Improvements | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment gross | 1,095 | 1,095 |
Buildings and Improvements | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment gross | 69,614 | 69,360 |
Machinery and Equipment | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment gross | $ 247,708 | $ 233,743 |
Property, Plant and Equipment_4
Property, Plant and Equipment, Net - Depreciation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Property Plant And Equipment [Abstract] | |||
Depreciation expense | $ 17,517 | $ 17,615 | $ 16,849 |
Retirement Plans - Additional I
Retirement Plans - Additional Information (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||
Jan. 31, 2022USD ($) | Jun. 30, 2021USD ($) | Jun. 30, 2021USD ($)Participant | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2022USD ($) | Jul. 29, 2021USD ($) | |
Retirement Plans | ||||||||
Amortization period | 14 years | |||||||
Amortization period of fair value of plan assets | 5 years | |||||||
Target Allocations | 100.00% | |||||||
Benefit obligations | $ 2,700 | |||||||
Remaining unrecognized pension losses reclassified in accumulated other comprehensive loss | $ 106,206 | |||||||
Prepaid pension asset | $ 49,382 | $ 56,642 | ||||||
Fixed Income Investments Including Cash and Cash Equivalents | ||||||||
Retirement Plans | ||||||||
Target Allocations | 100.00% | |||||||
Subsequent Event | ||||||||
Retirement Plans | ||||||||
Defined benefit plan, plan assets transferred to (from) plan | $ 17,500 | |||||||
UNITED STATES | ||||||||
Retirement Plans | ||||||||
Non-operating settlement charge | $ 126,269 | 0 | $ 0 | |||||
Benefit obligations | 1,008 | 230,205 | 220,339 | |||||
Prepaid pension asset | 49,382 | 56,642 | ||||||
UNITED STATES | Forecast | ||||||||
Retirement Plans | ||||||||
Expected contribution to be made by CTS | $ 100 | |||||||
Foreign Plan | ||||||||
Retirement Plans | ||||||||
Non-operating settlement charge | 0 | 0 | 0 | |||||
Benefit obligations | 2,335 | 2,686 | 2,633 | |||||
Prepaid pension asset | $ 0 | 0 | ||||||
Foreign Plan | Forecast | ||||||||
Retirement Plans | ||||||||
Expected contribution to be made by CTS | $ 235 | |||||||
Pension Plans | UNITED STATES | ||||||||
Retirement Plans | ||||||||
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.Ā 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 | |||||||
Post-Retirement Life Insurance Plan | ||||||||
Retirement Plans | ||||||||
Amortization period | 3 years | |||||||
Benefit obligations | $ 5,231 | $ 5,376 | $ 4,766 | |||||
Maximum | ||||||||
Retirement Plans | ||||||||
Noncontributory benefit pension plans covering active employees | 1.00% |
Retirement Plans - Summary of R
Retirement Plans - Summary of Reconciliation of Benefit Obligation, Plan Assets, and Funded Status (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Change in plan assets: | |||
Beginning Balance | $ 287,270 | ||
Ending Balance | 50,803 | $ 287,270 | |
Post-Retirement Life Insurance Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Accumulated benefit obligation | 5,231 | 5,376 | |
Change in projected benefit obligation: | |||
Beginning Balance | 5,376 | 4,766 | |
Service cost | 1 | 1 | $ 1 |
Interest cost | 80 | 122 | 170 |
Benefits paid | (151) | (154) | |
Actuarial (gain) loss | (75) | 641 | |
Ending Balance | 5,231 | 5,376 | 4,766 |
Change in plan assets: | |||
Beginning Balance | 0 | 0 | |
Actual return on assets | 0 | 0 | |
Company contributions | 151 | 154 | |
Benefits paid | (151) | (154) | |
Foreign exchange impact | 0 | 0 | |
Ending Balance | 0 | 0 | 0 |
Funded status (plan assets less projected benefit obligations) | (5,231) | (5,376) | |
UNITED STATES | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Accumulated benefit obligation | 1,008 | 230,205 | |
Change in projected benefit obligation: | |||
Beginning Balance | 230,205 | 220,339 | |
Service cost | 0 | 0 | 0 |
Interest cost | 2,861 | 5,773 | 7,724 |
Benefits paid | (12,206) | (14,590) | |
Actuarial (gain) loss | (3,533) | 18,683 | |
Plan settlements | (216,319) | 0 | |
Foreign exchange impact | 0 | 0 | |
Ending Balance | 1,008 | 230,205 | 220,339 |
Change in plan assets: | |||
Beginning Balance | 285,675 | 281,276 | |
Actual return on assets | (7,967) | 18,886 | |
Company contributions | 199 | 103 | |
Benefits paid | (12,206) | (14,590) | |
Plan settlements | (216,319) | 0 | |
Foreign exchange impact | 0 | 0 | |
Ending Balance | 49,382 | 285,675 | 281,276 |
Funded status (plan assets less projected benefit obligations) | 48,374 | 55,470 | |
Foreign Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Accumulated benefit obligation | 1,957 | 1,983 | |
Change in projected benefit obligation: | |||
Beginning Balance | 2,686 | 2,633 | |
Service cost | 26 | 31 | 37 |
Interest cost | 17 | 28 | 31 |
Benefits paid | (476) | (285) | |
Actuarial (gain) loss | 44 | 95 | |
Plan settlements | 0 | 0 | |
Foreign exchange impact | 38 | 184 | |
Ending Balance | 2,335 | 2,686 | 2,633 |
Change in plan assets: | |||
Beginning Balance | 1,595 | 1,419 | |
Actual return on assets | 28 | 95 | |
Company contributions | 252 | 268 | |
Benefits paid | (476) | (285) | |
Plan settlements | 0 | 0 | |
Foreign exchange impact | 22 | 98 | |
Ending Balance | 1,421 | 1,595 | $ 1,419 |
Funded status (plan assets less projected benefit obligations) | $ (914) | $ (1,091) |
Retirement Plans - Components o
Retirement Plans - Components of Prepaid (Accrued) Cost (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Retirement Plans | ||
Prepaid pension asset | $ 49,382 | $ 56,642 |
Post-Retirement Life Insurance Plan | ||
Retirement Plans | ||
Accrued expenses and other liabilities | (489) | (451) |
Long-term pension obligations | (4,742) | (4,924) |
Components of prepaid (accrued) cost, net | (5,231) | (5,375) |
UNITED STATES | ||
Retirement Plans | ||
Prepaid pension asset | 49,382 | 56,642 |
Accrued expenses and other liabilities | (100) | (100) |
Long-term pension obligations | (908) | (1,072) |
Components of prepaid (accrued) cost, net | 48,374 | 55,470 |
Foreign Plan | ||
Retirement Plans | ||
Prepaid pension asset | 0 | 0 |
Accrued expenses and other liabilities | 0 | 0 |
Long-term pension obligations | (914) | (1,091) |
Components of prepaid (accrued) cost, net | $ (914) | $ (1,091) |
Retirement Plans - Summary of A
Retirement Plans - Summary of Accumulated Other Comprehensive loss (Details) - Accumulated Defined Benefit Plans Adjustment, Net Unamortized Gain (Loss) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Post-Retirement Life Insurance Plan | ||
Accumulated Other Comprehensive Loss | ||
Beginning balance | $ (51) | $ (608) |
Amortization of retirement benefits, net of tax | 0 | 64 |
Net actuarial gain (loss) | (58) | 493 |
Ending balance | (109) | (51) |
UNITED STATES | ||
Accumulated Other Comprehensive Loss | ||
Beginning balance | 91,237 | 88,830 |
Amortization of retirement benefits, net of tax | (2,851) | (4,995) |
Net actuarial gain (loss) | 3,777 | 7,402 |
Settlement charges | (91,851) | |
Foreign exchange impact | 0 | 0 |
Ending balance | 312 | 91,237 |
Foreign Plan | ||
Accumulated Other Comprehensive Loss | ||
Beginning balance | 1,901 | 1,900 |
Amortization of retirement benefits, net of tax | (152) | (146) |
Net actuarial gain (loss) | 27 | 14 |
Settlement charges | 0 | |
Foreign exchange impact | 27 | 133 |
Ending balance | $ 1,803 | $ 1,901 |
Retirement Plans - Summary of P
Retirement Plans - Summary of Projected Benefit Obligation, Accumulated Benefit Obligation and Fair Value of Plan Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Retirement Plans | ||
Projected benefit obligation | $ 3,343 | $ 3,859 |
Accumulated benefit obligation | 2,965 | 3,155 |
Fair value of plan assets | $ 1,421 | $ 1,595 |
Retirement Plans - Summary of N
Retirement Plans - Summary of Net Pension and Postretirement Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Post-Retirement Life Insurance Plan | |||
Net pension expense (income) | |||
Service cost | $ 1 | $ 1 | $ 1 |
Interest cost | 80 | 122 | 170 |
Amortization of unrecognized loss | 0 | (84) | (166) |
Net expense | $ 81 | $ 39 | $ 5 |
Benefit obligation assumptions: | |||
Discount rate | 2.66% | 2.27% | 3.09% |
Pension income/expense assumptions: | |||
Discount rate | 2.27% | 3.09% | 4.26% |
UNITED STATES | |||
Net pension expense (income) | |||
Service cost | $ 0 | $ 0 | $ 0 |
Interest cost | 2,861 | 5,773 | 7,724 |
Expected return on plan assets | (474) | (9,817) | (12,187) |
Amortization of unrecognized loss | 3,703 | 6,488 | 5,246 |
Settlement charges | 126,269 | 0 | 0 |
Net expense | $ 132,359 | $ 2,444 | $ 783 |
Benefit obligation assumptions: | |||
Discount rate | 2.46% | 2.26% | 3.15% |
Pension income/expense assumptions: | |||
Discount rate | 2.10% | 3.15% | 4.30% |
Expected return on plan assets | 1.44% | 3.76% | 4.61% |
Foreign Plan | |||
Net pension expense (income) | |||
Service cost | $ 26 | $ 31 | $ 37 |
Interest cost | 17 | 28 | 31 |
Expected return on plan assets | (17) | (16) | (17) |
Amortization of unrecognized loss | 184 | 174 | 170 |
Settlement charges | 0 | 0 | 0 |
Net expense | $ 210 | $ 217 | $ 221 |
Benefit obligation assumptions: | |||
Discount rate | 0.63% | 0.63% | 1.00% |
Rate of compensation increase | 3.00% | 3.00% | |
Pension income/expense assumptions: | |||
Discount rate | 0.63% | 0.63% | 1.13% |
Expected return on plan assets | 0.63% | 0.63% | 1.13% |
Rate of compensation increase | 3.00% | 3.00% |
Retirement Plans - Summary of_2
Retirement Plans - Summary of Pension Plan Asset Allocation (Details) | Dec. 31, 2021 | Dec. 31, 2020 |
Retirement Plans | ||
Target Allocations | 100.00% | |
Percentage of Plan Assets at December 31, | 100.00% | 100.00% |
Equity Securities | ||
Retirement Plans | ||
Target Allocations | 0.00% | |
Percentage of Plan Assets at December 31, | 0.00% | 13.00% |
Fixed income/Debt securities | ||
Retirement Plans | ||
Target Allocations | 100.00% | |
Percentage of Plan Assets at December 31, | 100.00% | 83.00% |
Other | ||
Retirement Plans | ||
Target Allocations | 0.00% | |
Percentage of Plan Assets at December 31, | 0.00% | 4.00% |
Retirement Plans - Summary of F
Retirement Plans - Summary of Fair Values of Pension Plan (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Fair values of pension plan assets | ||
Total fair value of plan assets | $ 50,803 | $ 287,270 |
Equity Securities - U.S. Holdings | ||
Fair values of pension plan assets | ||
Total fair value of plan assets | 8 | 7 |
Bond Funds - Government | ||
Fair values of pension plan assets | ||
Total fair value of plan assets | 0 | 53,239 |
Bond Funds - Other | ||
Fair values of pension plan assets | ||
Total fair value of plan assets | 31,380 | 173,853 |
Cash and Cash Equivalents | ||
Fair values of pension plan assets | ||
Total fair value of plan assets | 19,415 | 53,379 |
Partnership | ||
Fair values of pension plan assets | ||
Total fair value of plan assets | $ 0 | $ 6,792 |
Retirement Plans - Summary of C
Retirement Plans - Summary of Categories in Fair Value Hierarchy (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Fair values of pension plan assets | |||
Defined Benefit Plan, Plan Assets, Amount | $ 50,803 | $ 287,270 | |
Not Leveled | |||
Fair values of pension plan assets | |||
Defined Benefit Plan, Plan Assets, Amount | 227,092 | ||
Quoted Prices in Active Markets (Level 1) | |||
Fair values of pension plan assets | |||
Defined Benefit Plan, Plan Assets, Amount | 50,803 | 53,386 | |
Significant Other Observable Inputs (Level 2) | |||
Fair values of pension plan assets | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | |||
Fair values of pension plan assets | |||
Defined Benefit Plan, Plan Assets, Amount | 6,792 | ||
Equity Securities - U.S. Holdings | |||
Fair values of pension plan assets | |||
Defined Benefit Plan, Plan Assets, Amount | 8 | 7 | |
Equity Securities - U.S. Holdings | Quoted Prices in Active Markets (Level 1) | |||
Fair values of pension plan assets | |||
Defined Benefit Plan, Plan Assets, Amount | 8 | 7 | |
Bond Funds - Other | |||
Fair values of pension plan assets | |||
Defined Benefit Plan, Plan Assets, Amount | 31,380 | 173,853 | |
Bond Funds - Other | Not Leveled | |||
Fair values of pension plan assets | |||
Defined Benefit Plan, Plan Assets, Amount | 173,853 | ||
Bond Funds - Other | Quoted Prices in Active Markets (Level 1) | |||
Fair values of pension plan assets | |||
Defined Benefit Plan, Plan Assets, Amount | 31,380 | ||
Cash and Cash Equivalents | |||
Fair values of pension plan assets | |||
Defined Benefit Plan, Plan Assets, Amount | 19,415 | 53,379 | |
Cash and Cash Equivalents | Quoted Prices in Active Markets (Level 1) | |||
Fair values of pension plan assets | |||
Defined Benefit Plan, Plan Assets, Amount | 19,415 | 53,379 | |
Bond Funds - Government | |||
Fair values of pension plan assets | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | 53,239 | |
Bond Funds - Government | Not Leveled | |||
Fair values of pension plan assets | |||
Defined Benefit Plan, Plan Assets, Amount | 53,239 | ||
Partnership | |||
Fair values of pension plan assets | |||
Defined Benefit Plan, Plan Assets, Amount | $ 0 | 6,792 | |
Partnership | Significant Unobservable Inputs (Level 3) | |||
Fair values of pension plan assets | |||
Defined Benefit Plan, Plan Assets, Amount | $ 6,792 | $ 7,539 |
Retirement Plans - Summary of_3
Retirement Plans - Summary of Categories in Fair Value Hierarchy (Parenthetical) (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Long-term Government Bonds | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined benefit plan, plan assets, maturity period | 10 years |
Treasury Strips | Minimum | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined benefit plan, plan assets, maturity period | 20 years |
Retirement Plans - Summary of_4
Retirement Plans - Summary of Reconciliation of Level 3 Partnership Assets Within Fair Value Hierarchy (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Reconciliation of Level 3 fund assets | ||
Beginning Balance | $ 287,270 | |
Ending Balance | 50,803 | $ 287,270 |
Partnership | ||
Reconciliation of Level 3 fund assets | ||
Beginning Balance | 6,792 | |
Ending Balance | 0 | 6,792 |
Significant Unobservable Inputs (Level 3) | ||
Reconciliation of Level 3 fund assets | ||
Beginning Balance | 6,792 | |
Ending Balance | 6,792 | |
Significant Unobservable Inputs (Level 3) | Partnership | ||
Reconciliation of Level 3 fund assets | ||
Beginning Balance | 6,792 | 7,539 |
Capital contributions | 13 | 44 |
Realized and unrealized loss | (2,075) | (269) |
Capital distributions | $ (4,730) | (522) |
Ending Balance | $ 6,792 |
Retirement Plans - Summary of E
Retirement Plans - Summary of Estimated Future Benefit Payments (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Post-Retirement Life Insurance Plan | |
Estimated Future Benefit Payments | |
2022 | $ 489 |
2023 | 455 |
2024 | 425 |
2025 | 398 |
2026 | 373 |
2027-2030 | 1,571 |
Total | 3,711 |
UNITED STATES | |
Estimated Future Benefit Payments | |
2022 | 100 |
2023 | 96 |
2024 | 92 |
2025 | 88 |
2026 | 84 |
2027-2030 | 349 |
Total | 809 |
Foreign Plan | |
Estimated Future Benefit Payments | |
2022 | 54 |
2023 | 58 |
2024 | 73 |
2025 | 81 |
2026 | 89 |
2027-2030 | 667 |
Total | $ 1,022 |
Retirement Plans - Summary of D
Retirement Plans - Summary of Defined Contribution Plans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Compensation And Retirement Disclosure [Abstract] | |||
401(k) and other defined contribution plan expense | $ 3,242 | $ 1,636 | $ 3,125 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Summary of Other Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Other intangible assets: | |||
Gross Carrying Amount | $ 144,330 | $ 144,656 | |
Accumulated Amortization | (74,442) | (65,535) | |
Net Amount | $ 69,888 | 79,121 | |
Weighted Average Remaining Amortization Period (in years) | 8 years 3 months 18 days | ||
Amortization expense | $ 9,413 | 9,055 | $ 7,770 |
Customer Lists/Relationships | |||
Other intangible assets: | |||
Gross Carrying Amount | 96,889 | 97,355 | |
Accumulated Amortization | (49,213) | (44,002) | |
Net Amount | $ 47,676 | 53,353 | |
Weighted Average Remaining Amortization Period (in years) | 8 years 10 months 24 days | ||
Technology and other intangibles | |||
Other intangible assets: | |||
Gross Carrying Amount | $ 47,441 | 47,301 | |
Accumulated Amortization | (25,229) | (21,533) | |
Net Amount | $ 22,212 | $ 25,768 | |
Weighted Average Remaining Amortization Period (in years) | 6 years 9 months 18 days |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Additional Information (Details) - USD ($) | Oct. 01, 2021 | Oct. 01, 2020 | Jun. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Indefinite Lived Intangible Assets By Major Class [Line Items] | |||||||
Revaluation of contingent liabilities | $ 1,900,000 | ||||||
Restructuring expense | 300,000 | $ 0 | $ 300,000 | $ 1,704,000 | |||
Goodwill impairment | $ 0 | $ 0 | |||||
Sensor Scientific, Inc. | |||||||
Indefinite Lived Intangible Assets By Major Class [Line Items] | |||||||
Acquisition, purchase price | $ 510,000 | ||||||
Acquisition, purchase price paid during the period | 255,000 | ||||||
Acquisition, purchase price to be paid in the second quarter of 2022 | $ 255,000 | ||||||
In process research and development | |||||||
Indefinite Lived Intangible Assets By Major Class [Line Items] | |||||||
Impairment charges | $ 2,200,000 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Summary of Estimated Amortization Expense (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Amortization expense | ||
2022 | $ 9,176 | |
2023 | 7,170 | |
2024 | 7,008 | |
2025 | 6,787 | |
2026 | 6,752 | |
Thereafter | 32,995 | |
Net Amount | $ 69,888 | $ 79,121 |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets - Summary Changes in Net Carrying Value Amount of Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Goodwill Roll Forward | ||
Beginning balance | $ 109,497 | $ 106,056 |
Increase due to acquisition | 430 | 3,441 |
Decrease from purchase accounting adjustments | (129) | |
Ending balance | $ 109,798 | $ 109,497 |
Costs Associated with Exit an_3
Costs Associated with Exit and Restructuring Activities - Schedule of Restructuring Charges (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Restructuring And Related Activities [Abstract] | |||
Restructuring charges | $ 1,687 | $ 1,830 | $ 7,448 |
Costs Associated with Exit an_4
Costs Associated with Exit and Restructuring Activities - Additional Information (Details) - USD ($) | 3 Months Ended | 12 Months Ended | 16 Months Ended | ||||
Dec. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2021 | Sep. 30, 2020 | Dec. 31, 2017 | |
Restructuring Cost And Reserve [Line Items] | |||||||
Restructuring charges | $ 1,687,000 | $ 1,830,000 | $ 7,448,000 | ||||
Restructuring reserve | $ 962,000 | 962,000 | 1,363,000 | $ 962,000 | |||
Exit and Disposal Activities, Building and Equipment Relocation and Workforce Reduction | |||||||
Restructuring Cost And Reserve [Line Items] | |||||||
Restructuring charges | 1,717,000 | 442,000 | |||||
Restructuring reserve | 962,000 | 962,000 | 9,000 | 962,000 | |||
September 2020 Plan | |||||||
Restructuring Cost And Reserve [Line Items] | |||||||
Restructuring charges | 0 | 0 | 1,397,000 | ||||
Restructuring reserve | $ 0 | 0 | $ 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 | ||||||
June 2016 Plan | |||||||
Restructuring Cost And Reserve [Line Items] | |||||||
Restructuring charges | $ (3,000) | $ (32,000) | $ 4,284,000 | ||||
Restructuring and related cost additional cost | $ 1,100,000 |
Costs Associated with Exit an_5
Costs Associated with Exit and Restructuring Activities - Restructuring Reserve Activity (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Restructuring And Related Activities [Abstract] | |||
Restructuring liability | $ 1,363 | ||
Restructuring charges | 1,687 | $ 1,830 | $ 7,448 |
Cost paid | (1,903) | ||
Other activities | (185) | ||
Restructuring liability | $ 962 | $ 1,363 |
Accrued Expenses and Other Li_3
Accrued Expenses and Other Liabilities - Components of Accrued Expenses and Other Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Payables And Accruals [Abstract] | ||||
Accrued product-related costs | $ 3,188 | $ 4,470 | ||
Accrued income taxes | 6,761 | 7,320 | ||
Accrued property and other taxes | 2,370 | 2,478 | ||
Accrued professional fees | 1,629 | 1,663 | ||
Accrued customer-related liabilities | 3,254 | 3,815 | ||
Dividends payable | 1,289 | 1,291 | ||
Remediation reserves | 10,979 | 10,642 | $ 11,444 | $ 11,274 |
Derivative liabilities | 437 | 671 | ||
Other accrued liabilities | 6,811 | 5,821 | ||
Total accrued expenses and other liabilities | $ 36,718 | $ 38,171 |
Contingencies - Additional Info
Contingencies - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2021Site | |
U.S. Environmental Protection Agency | |
Loss Contingencies [Line Items] | |
Number of sites under National Priorities List of Superfund program | 2 |
Contingencies - Roll-forward of
Contingencies - Roll-forward of Remediation Reserves Included in Accrued Expenses and Other Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |||
Balance at beginning of period | $ 10,642 | $ 11,444 | $ 11,274 |
Remediation expense | 2,254 | 2,769 | 2,602 |
Remediation payments | (1,929) | (3,639) | (2,455) |
Other activity | 12 | 68 | 23 |
Balance at end of the period | $ 10,979 | $ 10,642 | $ 11,444 |
Leases - Summary of Lease Expen
Leases - Summary of Lease Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | |||
Operating lease cost | $ 5,144 | $ 4,763 | $ 4,342 |
Short-term lease cost | 1,403 | 1,015 | 1,013 |
Total lease cost | $ 6,547 | $ 5,778 | $ 5,355 |
Leases - Summary of Supplementa
Leases - Summary of Supplemental Cash Flow Information Related to Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Supplemental Cash Flow Information [Abstract] | |||
Cash paid for amounts included in the measurement of lease obligations | $ 3,666 | $ 4,654 | $ 3,957 |
Leased assets obtained in exchange for new operating lease obligations | $ 1,253 | $ 1,678 | $ 5,000 |
Leases - Summary of Balance She
Leases - Summary of Balance Sheet Classification for Operating Leases (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
Operating lease obligations | $ 3,393 | $ 3,294 |
Long-term operating lease obligations | 21,354 | 23,163 |
Total lease liabilities | $ 24,747 | $ 26,457 |
Weighted-average remaining lease terms (years) | 7 years 2 months 15 days | 7 years 10 months 17 days |
Weighted-average discount rate | 6.27% | 6.40% |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Lease Payments for Operating Leases (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
2022 | $ 4,826 | |
2023 | 4,567 | |
2024 | 4,402 | |
2025 | 3,759 | |
2026 | 2,815 | |
Thereafter | 11,525 | |
Total | 31,894 | |
Less: interest | (7,147) | |
Present value of lease payments | $ 24,747 | $ 26,457 |
Leases - Schedule of Future M_2
Leases - Schedule of Future Minimum Lease Payments for Operating Leases (Parenthetical) (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Leases [Abstract] | |
Operating lease payment on extension option | $ 651 |
Debt - Summary of Long-Term Deb
Debt - Summary of Long-Term Debt (Details) - USD ($) | Dec. 31, 2021 | Dec. 15, 2021 | Dec. 31, 2020 | May 23, 2016 |
Long-term debt | ||||
Total credit facility availability | $ 400,000,000 | $ 300,000,000 | ||
Balance outstanding | 50,000,000 | 54,600,000 | ||
Standby letters of credit | 1,740,000 | 1,740,000 | ||
Amount available, subject to covenant restrictions | 348,260,000 | 243,660,000 | ||
Revolving Credit Facility Due 2024 | ||||
Long-term debt | ||||
Total credit facility availability | $ 400,000,000 | $ 300,000,000 | ||
Balance outstanding | $ 50,000,000 | $ 54,600,000 | ||
Weighted-average interest rate | 1.16% | 1.92% |
Debt - Additional Information (
Debt - Additional Information (Details) - USD ($) | Dec. 15, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | May 23, 2016 |
Line of Credit Facility | |||||
Line of credit maximum borrowing amount | $ 400,000,000 | $ 300,000,000 | |||
Debt amortization expense | $ 169,000 | $ 168,000 | $ 163,000 | ||
Revolving Credit Facility Due 2024 | |||||
Line of Credit Facility | |||||
Line of credit maximum borrowing amount | $ 400,000,000 | $ 300,000,000 | |||
Line of credit facility contingent increase to maximum borrowing capacity | $ 200,000,000 | ||||
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 | U S Dollar Denominated Debt | SOFR | Minimum | |||||
Line of Credit Facility | |||||
Interest rate plus an applicable margin | 1.00% | ||||
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 | 1.00% | ||||
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 | ||||
Line of Credit | Revolving Credit Facility Due 2024 | |||||
Line of Credit Facility | |||||
Debt instrument, term | 5 years |
Derivative Financial Instrume_3
Derivative Financial Instruments - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Derivative [Line Items] | ||
Derivative hedge, Ineffectiveness recognized | $ 0 | |
Unrealized gain (loss) on foreign currency derivatives, net, before tax | 121,000 | |
Derivative liabilities | 437,000 | $ 671,000 |
Foreign Currency Derivatives | ||
Derivative [Line Items] | ||
Derivative asset | 141,000 | |
Derivative liabilities | 6,000 | |
Cash Flow Hedging | Designated As Hedging | Interest Rate Swap | ||
Derivative [Line Items] | ||
Derivative, notional amount | 50,000,000 | |
Interest rate cash flow hedge gain (loss) to be reclassified during next 12 months | 336,000 | |
Cash Flow Hedging | Designated As Hedging | Foreign Currency Forward Contracts | ||
Derivative [Line Items] | ||
Foreign currency cash flow hedge gain (loss) to be reclassified during next 12 months | 121,000 | |
Derivative, notional amount | $ 18,017,000 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Schedule of Location and Fair Values of Derivative Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Derivatives Fair Value [Line Items] | ||
Derivative liabilities | $ 437 | $ 671 |
Cash Flow Hedging | Foreign Currency Forward Contracts | Other Current Assets | ||
Derivatives Fair Value [Line Items] | ||
Derivative asset | 135 | 1,125 |
Interest Rate Swap | Cash Flow Hedging | Other Current Assets | ||
Derivatives Fair Value [Line Items] | ||
Derivative asset | 0 | 0 |
Interest Rate Swap | Cash Flow Hedging | Accrued Expenses and Other Liabilities | ||
Derivatives Fair Value [Line Items] | ||
Derivative liabilities | (437) | (671) |
Interest Rate Swap | Cash Flow Hedging | Other Long-term Obligations | ||
Derivatives Fair Value [Line Items] | ||
Derivative liabilities | $ (353) | $ (1,546) |
Derivative Financial Instrume_5
Derivative Financial Instruments - Schedule of Effect of Derivative Instruments on Consolidated Statements of (Loss) Earnings (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain recognized in other expense for hedge ineffectiveness | $ 0 | ||
Derivative, Gain (Loss) on Derivative, Net | 640,000 | $ (1,316,000) | $ 1,443,000 |
Foreign Currency Derivatives | Designated As Hedging | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total amounts reclassified from AOCI to earnings | 1,384,000 | (887,000) | 952,000 |
Derivative, Gain (Loss) on Derivative, Net | 1,384,000 | (884,000) | 952,000 |
Foreign Currency Derivatives | Net Sales | Designated As Hedging | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total amounts reclassified from AOCI to earnings | 0 | (128,000) | 0 |
Foreign Currency Derivatives | Cost of Goods Sold | Designated As Hedging | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total amounts reclassified from AOCI to earnings | 1,384,000 | (754,000) | 860,000 |
Foreign Currency Derivatives | Selling, General and Administrative Expenses | Designated As Hedging | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total amounts reclassified from AOCI to earnings | 0 | (5,000) | 92,000 |
Foreign Currency Derivatives | Other Nonoperating Income (Expense) | Designated As Hedging | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain recognized in other expense for hedge ineffectiveness | 0 | 3,000 | 0 |
Interest Rate Swap | Interest Expense | Designated As Hedging | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, Gain (Loss) on Derivative, Net | $ (744,000) | $ (432,000) | $ 491,000 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive (Loss) Income - Components of Accumulated Other Comprehensive (loss) Income (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Changes in AOCI, Net | ||
Total accumulated other comprehensive (loss) income, beginning of period | $ (95,921) | |
Total accumulated other comprehensive (loss) income, end of period | (4,525) | $ (95,921) |
Changes in Fair Market Value of Derivatives | ||
Changes in AOCI, Gross | ||
Gross, beginning of the period | (1,038) | 659 |
Gross, gain (loss) recognized in OCI | 1,043 | (3,015) |
Gross, gain (loss) reclassified from AOCI to earnings | (640) | 1,318 |
Gross, ending balance | (635) | (1,038) |
Changes in AOCI, Income tax benefit (expense) | ||
Income tax benefit (expense), beginning of period | 240 | (150) |
Income tax benefit (expense), gain (loss) recognized in OCI | (240) | 684 |
Income tax benefit (expense), gain (loss) reclassified from AOCI to earnings | 147 | (294) |
Income tax benefit (expense), ending of period | 147 | 240 |
Changes in AOCI, Net | ||
Total accumulated other comprehensive (loss) income, beginning of period | (798) | 509 |
Gain (loss) recognized in OCI, net | 803 | (2,331) |
(Gain) Loss reclassified from AOCI to earnings, net | (493) | 1,024 |
Total accumulated other comprehensive (loss) income, end of period | (488) | (798) |
Changes in Unrealized Pension Cost | ||
Changes in AOCI, Gross | ||
Gross, beginning of the period | (128,004) | (124,140) |
Gross, gain (loss) recognized in OCI | (4,951) | |
Gross, gain (loss) reclassified from AOCI to earnings | 130,211 | (3,864) |
Gross, ending balance | (2,744) | (128,004) |
Changes in AOCI, Income tax benefit (expense) | ||
Income tax benefit (expense), beginning of period | 34,917 | 34,018 |
Income tax benefit (expense), gain (loss) recognized in OCI | 1,139 | |
Income tax benefit (expense), gain (loss) reclassified from AOCI to earnings | (35,318) | 899 |
Income tax benefit (expense), ending of period | 738 | 34,917 |
Changes in AOCI, Net | ||
Total accumulated other comprehensive (loss) income, beginning of period | (93,087) | (90,122) |
Gain (loss) recognized in OCI, net | (3,812) | |
(Gain) Loss reclassified from AOCI to earnings, net | 94,893 | (2,965) |
Total accumulated other comprehensive (loss) income, end of period | (2,006) | (93,087) |
Cumulative Translation Adjustment | ||
Changes in AOCI, Gross | ||
Gross, beginning of the period | (2,036) | (2,211) |
Gross, gain (loss) recognized in OCI | 4 | 175 |
Gross, ending balance | (2,032) | (2,036) |
Changes in AOCI, Income tax benefit (expense) | ||
Income tax benefit (expense), beginning of period | 98 | |
Income tax benefit (expense), gain (loss) recognized in OCI | (98) | |
Changes in AOCI, Net | ||
Total accumulated other comprehensive (loss) income, beginning of period | (2,036) | (2,113) |
Gain (loss) recognized in OCI, net | 4 | 77 |
Total accumulated other comprehensive (loss) income, end of period | (2,032) | (2,036) |
Accumulated Other Comprehensive (Loss) Income | ||
Changes in AOCI, Net | ||
Total accumulated other comprehensive (loss) income, beginning of period | (95,921) | (91,726) |
Gain (loss) recognized in OCI, net | (3,005) | (2,254) |
(Gain) Loss reclassified from AOCI to earnings, net | 94,400 | (1,941) |
Total accumulated other comprehensive (loss) income, end of period | $ (4,526) | $ (95,921) |
Shareholders' Equity - Summary
Shareholders' Equity - Summary of Share Count and Par Value Data Related to Shareholders' Equity (Details) - $ / shares | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
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 | 57,245,060 | 57,076,410 | |
Common stock, shares outstanding | 32,178,715 | 32,276,787 | 32,472,406 |
Treasury stock | |||
Treasury stock, shares held | 25,066,345 | 24,799,623 |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | May 13, 2021 | |
Equity Class Of Treasury Stock [Line Items] | ||||
Common stock repurchased, shares | 266,722 | 342,731 | 420,770 | |
Common stock repurchased, value | $ 8,786,000 | $ 8,080,000 | $ 11,746,000 | |
Shares available for future purchases | $ 41,214,000 | |||
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 | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Roll forward of common shares outstanding | |||
Balance at beginning of the year | 32,276,787 | 32,472,406 | |
Repurchases | (266,722) | (342,731) | (420,770) |
Restricted stock unit issuances | 168,650 | 147,112 | |
Balance at end of period | 32,178,715 | 32,276,787 | 32,472,406 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021USD ($)planshares | Dec. 31, 2020USD ($)shares | Dec. 31, 2019USD ($) | |
Share-based Compensation | |||
Number of equity based compensation plans | plan | 5 | ||
Share-based compensation arrangement by share-based payment award, equity instruments other than options, vested in period, fair value | $ 7,063 | $ 5,680 | $ 6,589 |
Other accrued liabilities | 6,811 | $ 5,821 | |
RSU | |||
Share-based Compensation | |||
Tax benefit from the issuance of stock | $ 1,624 | ||
Service-Based RSUs | |||
Share-based Compensation | |||
Vesting period | 3 years | ||
Number of shares to be issued upon vesting of each option | shares | 1 | ||
Service-Based RSUs | Non-employee Directors | |||
Share-based Compensation | |||
Vesting period | 1 year | ||
Performance-Based RSUs | |||
Share-based Compensation | |||
Share-based compensation arrangement by share-based payment award, award vesting rights | three-year | ||
Performance-Based RSUs | Minimum | |||
Share-based Compensation | |||
Vesting percent | 0.00% | ||
Performance-Based RSUs | Maximum | |||
Share-based Compensation | |||
Vesting percent | 200.00% | ||
Cash Settled Awards | |||
Share-based Compensation | |||
Outstanding shares | shares | 32,085 | 30,009 | |
Other accrued liabilities | $ 400 | $ 396 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Stock-based compensation | $ 6,105 | $ 3,417 | $ 5,015 |
Service-Based RSUs | |||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Stock-based compensation | 2,714 | 2,601 | 2,207 |
Performance-Based RSUs | |||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Stock-based compensation | 3,113 | 539 | 2,553 |
Cash Settled Awards | |||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Stock-based compensation | 278 | 277 | 255 |
RSUs | |||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Stock-based compensation | 6,105 | 3,417 | 5,015 |
Income tax benefit | 1,404 | 786 | 1,133 |
Net | $ 4,701 | $ 2,631 | $ 3,882 |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of Unrecognized Compensation Expense related to Non-vested RSUs (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Service-Based RSUs | |
Share-based Compensation | |
Unrecognized compensation expense | $ 2,021 |
Weighted-average period | 1 year 2 months 23 days |
Performance-Based RSUs | |
Share-based Compensation | |
Unrecognized compensation expense | $ 3,704 |
Weighted-average period | 1 year 9 months 7 days |
RSUs | |
Share-based Compensation | |
Unrecognized compensation expense | $ 5,725 |
Weighted-average period | 1 year 6 months 29 days |
Stock-Based Compensation - Su_3
Stock-Based Compensation - Summary of Status of Plans (Details) | 12 Months Ended |
Dec. 31, 2021shares | |
2018 Plan | |
Summary of Status of Equity-Based Compensation Plans | |
Awards originally available to be granted | 2,500,000 |
Maximum potential RSU and cash settled awards outstanding | 638,268 |
RSUs and cash settled awards vested and released | 127,313 |
Awards available to be granted | 1,734,419 |
2014 Plan | |
Summary of Status of Equity-Based Compensation Plans | |
Awards originally available to be granted | 1,500,000 |
Maximum potential RSU and cash settled awards outstanding | 35,100 |
2009 Plan | |
Summary of Status of Equity-Based Compensation Plans | |
Awards originally available to be granted | 3,400,000 |
Maximum potential RSU and cash settled awards outstanding | 45,200 |
2004 Plan | |
Summary of Status of Equity-Based Compensation Plans | |
Awards originally available to be granted | 6,500,000 |
Maximum potential RSU and cash settled awards outstanding | 14,545 |
Directors' Plan | |
Summary of Status of Equity-Based Compensation Plans | |
Maximum potential RSU and cash settled awards outstanding | 4,722 |
Stock-Based Compensation - Su_4
Stock-Based Compensation - Summary of RSU Activity (Details) - Service-Based RSUs - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Weighted Average Grant Date Fair Value | |||
Beginning of year - Weighted Average Grant Date Fair Value | $ 28.14 | ||
Granted - Weighted Average Grant Date Fair Value | 33.81 | ||
Released - Weighted Average Grant Date Fair Value | 28.39 | ||
Forfeited - Weighted Average Grant Date Fair Value | 29.11 | ||
End of year - Weighted Average Grant Date Fair Value | $ 31.42 | $ 28.14 | |
Officers, Key Employees, and Non-employee Directors | |||
Units | |||
Outstanding at beginning of year - Units | 367,428 | ||
Granted - Units | 93,565 | ||
Released - Units | (161,626) | ||
Forfeited - Units | (16,151) | ||
Outstanding at end of year - Units | 283,216 | 367,428 | |
Releasable - Units | 132,667 | ||
Weighted Average Grant Date Fair Value | |||
Beginning of year - Weighted Average Grant Date Fair Value | $ 21.28 | ||
Granted - Weighted Average Grant Date Fair Value | 33.81 | $ 27.94 | $ 28.61 |
Released - Weighted Average Grant Date Fair Value | 21.41 | ||
Forfeited - Weighted Average Grant Date Fair Value | 29.11 | ||
End of year - Weighted Average Grant Date Fair Value | 24.91 | $ 21.28 | |
Releasable - Weighted Average Grant Date Fair Value | $ 17.53 | ||
Intrinsic value of RSUs released | $ 5,408 | $ 2,503 | $ 2,155 |
Weighted Average Remaining Contractual Term | |||
Outstanding - Weighted Average Remaining Contractual Term | 17 years 10 months 17 days | ||
Releasable - Weighted Average Remaining Contractual Term | 29 years 11 months 1 day | ||
Aggregate Intrinsic Value | |||
Outstanding - Aggregate Intrinsic Value | $ 10,320 | ||
Releasable - Aggregate Intrinsic Value | $ 4,872 |
Stock-Based Compensation - Su_5
Stock-Based Compensation - Summary of Non-vested RSU Activity (Details) - Service-Based RSUs | 12 Months Ended |
Dec. 31, 2021$ / sharesshares | |
Units | |
Nonvested, outstanding at beginning of period, RSUs | shares | 163,854 |
Granted, RSUs | shares | 93,565 |
Vested, RSUs | shares | (90,719) |
Forfeited, RSUs | shares | (16,151) |
Nonvested, outstanding at end of period, RSUs | shares | 150,549 |
Weighted Average Grant Date Fair Value | |
Beginning of year - Weighted Average Grant Date Fair Value | $ / shares | $ 28.14 |
Granted - Weighted Average Grant Date Fair Value | $ / shares | 33.81 |
Released - Weighted Average Grant Date Fair Value | $ / shares | 28.39 |
Forfeited - Weighted Average Grant Date Fair Value | $ / shares | 29.11 |
End of year - Weighted Average Grant Date Fair Value | $ / shares | $ 31.42 |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Performance-Based RSUs (Details) - Performance Shares $ / shares in Units, $ in Thousands | 12 Months Ended |
Dec. 31, 2021USD ($)$ / sharesshares | |
Units | |
Outstanding at beginning of year - Units | shares | 225,559 |
Granted, RSUs | shares | 90,337 |
Added by performance factor, Units | shares | 18,107 |
Released, Units | shares | (53,145) |
Forfeited, RSUs | shares | (43,091) |
Outstanding at end of year - Units | shares | 237,767 |
Weighted Average Grant Date Fair Value | |
Beginning of year, Weighted Average Grant Date Fair Value | $ / shares | $ 28.97 |
Granted - Weighted Average Grant Date Fair Value | $ / shares | 34.38 |
Added by performance factor, Weighted Average Grant Date Fair Value | $ / shares | 28.33 |
Released - Weighted Average Grant Date Fair Value | $ / shares | 28.33 |
Forfeited - Weighted Average Grant Date Fair Value | $ / shares | 27.71 |
End of year, Weighted Average Grant Date Fair Value | $ / shares | $ 31.35 |
Outstanding, Weighted Average Remaining Contractual Term | 1 year 8 months 26 days |
Outstanding - Aggregate Intrinsic Value | $ | $ 8,731 |
Stock-Based Compensation - Sc_2
Stock-Based Compensation - Schedule of Performance Awards Outstanding (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2021USD ($)shares | |
Share-based Compensation | |
Target Units Outstanding | 237,767 |
Maximum Number of Units to be Granted | 422,534 |
2019-2021 Performance RSUs | February 7, 2019 | |
Share-based Compensation | |
Vesting Year | 2021 |
Target Units Outstanding | 46,928 |
Maximum Number of Units to be Granted | 93,856 |
Awards weighted percentage for achievement of RSTR metric | 35.00% |
Awards weighted percentage for achievement of sales growth metric | 35.00% |
Awards weighted percentage for achievement of cash flow metric | 30.00% |
Vesting Dependency | 35% RTSR, 35% sales growth,30% operating cash flow |
2019 Supplemental Performance RSUs | February 7, 2019 | |
Share-based Compensation | |
Vesting Year | 2021 |
Target Units Outstanding | 6,945 |
Maximum Number of Units to be Granted | 13,890 |
Vesting Dependency | Succession Planning Targets |
2020 - 2022 QTI Performance RSUs | September 24, 2019 | |
Share-based Compensation | |
Vesting Year | 2022 |
Target Units Outstanding | 1,750 |
Maximum Number of Units to be Granted | 3,500 |
EBITDA growth percentage | 50.00% |
Awards weighted percentage for achievement of sales growth metric | 50.00% |
Vesting Dependency | 50% EBITDA growth,50% Sales growth |
2020 - 2022 Performance RSUs | February 6, 2020 | |
Share-based Compensation | |
Vesting Year | 2022 |
Target Units Outstanding | 59,475 |
Maximum Number of Units to be Granted | 118,950 |
Awards weighted percentage for achievement of RSTR metric | 25.00% |
Awards weighted percentage for achievement of sales growth metric | 40.00% |
Awards weighted percentage for achievement of cash flow metric | 35.00% |
Vesting Dependency | 25% RTSR, 40% sales growth,35% operating cash flow |
2021 - 2023 Performance RSUs | Varies | |
Share-based Compensation | |
Vesting Year | 2023 |
Target Units Outstanding | 69,669 |
Maximum Number of Units to be Granted | 139,338 |
Awards weighted percentage for achievement of RSTR metric | 25.00% |
Awards weighted percentage for achievement of sales growth metric | 40.00% |
Awards weighted percentage for achievement of cash flow metric | 35.00% |
Vesting Dependency | 25% RTSR, 40% sales growth,35% operating cash flow |
Focus 2025 Performance RSUs | Varies | |
Share-based Compensation | |
Vesting Year | 2024 |
Target Units Outstanding | 53,000 |
Maximum Number of Units to be Granted | 53,000 |
Vesting Dependency, cumulative revenues | $ | $ 750 |
Vesting Dependency | Cumulative revenues of $750 million over a trailing four-quarter period |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Financial Liabilities and Assets Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Financial liabilities and assets, measured at fair value | |||
Derivative liabilities | $ (437) | $ (671) | |
(Loss) Gain on Foreign Currency Cash Flow Hedge Ineffectiveness | 35 | 20 | $ (97) |
Recurring | Designated As Hedging | Cash Flow Hedge | Significant Unobservable Inputs (Level 3) | |||
Financial liabilities and assets, measured at fair value | |||
Contingent consideration | (1,200) | (2,000) | |
Recurring | Carrying Value | Designated As Hedging | Cash Flow Hedge | |||
Financial liabilities and assets, measured at fair value | |||
Contingent consideration | (1,200) | (2,000) | |
Recurring | Interest Rate Swap | |||
Financial liabilities and assets, measured at fair value | |||
(Loss) Gain on Foreign Currency Cash Flow Hedge Ineffectiveness | (744) | (432) | |
Recurring | Interest Rate Swap | Designated As Hedging | Cash Flow Hedge | Significant Other Observable Inputs (Level 2) | |||
Financial liabilities and assets, measured at fair value | |||
Derivative liabilities | (790) | (2,217) | |
Recurring | Interest Rate Swap | Carrying Value | Designated As Hedging | Cash Flow Hedge | |||
Financial liabilities and assets, measured at fair value | |||
Derivative liabilities | (790) | (2,217) | |
Recurring | Foreign Currency Forward Contracts | |||
Financial liabilities and assets, measured at fair value | |||
(Loss) Gain on Foreign Currency Cash Flow Hedge Ineffectiveness | 1,384 | (887) | |
Recurring | Foreign Currency Forward Contracts | Designated As Hedging | Cash Flow Hedge | Significant Other Observable Inputs (Level 2) | |||
Financial liabilities and assets, measured at fair value | |||
Derivative asset | 135 | 1,125 | |
Recurring | Foreign Currency Forward Contracts | Carrying Value | Designated As Hedging | Cash Flow Hedge | |||
Financial liabilities and assets, measured at fair value | |||
Derivative asset | $ 135 | $ 1,125 |
Fair Value Measurements - Roll-
Fair Value Measurements - Roll-forward of the Contingent Consideration (Details) - Contingent Consideration $ in Thousands | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |
Balance at December 31, 2020 | $ 2,000 |
Settled in cash | (650) |
Reclassified to payable in accrued expenses and other liabilities | (150) |
Balance at December 31, 2021 | $ 1,200 |
Income Taxes - (Loss) Earnings
Income Taxes - (Loss) Earnings Before Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Earnings before income taxes | |||
Earnings before income taxes | $ (60,880) | $ 45,479 | $ 50,266 |
U.S. | |||
Earnings before income taxes | |||
Earnings before income taxes | (128,699) | (7,101) | 15,103 |
Non-U.S. | |||
Earnings before income taxes | |||
Earnings before income taxes | $ 67,819 | $ 52,580 | $ 35,163 |
Income Taxes - Significant Comp
Income Taxes - Significant Components of Income Tax Provision/(Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Current: | |||
U.S. | $ 36 | $ 211 | $ (391) |
Non-U.S. | 11,932 | 11,275 | 10,666 |
Total Current | 11,968 | 11,486 | 10,275 |
Deferred: | |||
U.S. | (35,979) | (2,815) | 558 |
Non-U.S. | 4,997 | 2,122 | 3,287 |
Total Deferred | (30,982) | (693) | 3,845 |
Total provision for income taxes | $ (19,014) | $ 10,793 | $ 14,120 |
Income Taxes - Significant Co_2
Income Taxes - Significant Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Significant components of deferred tax assets and liabilities | ||
Post-retirement benefits | $ 1,226 | $ 1,259 |
Inventory reserves | 69 | 477 |
Loss carry-forwards | 5,070 | 5,128 |
Credit carry-forwards | 19,665 | 17,401 |
Accrued expenses | 4,917 | 5,693 |
Research expenditures | 19,226 | 18,893 |
Operating lease liabilities | 5,643 | 6,012 |
Stock compensation | 1,970 | 1,969 |
Foreign exchange loss | 2,052 | 2,166 |
Other | 769 | 872 |
Gross deferred tax assets | 60,607 | 59,870 |
Depreciation and amortization | 13,386 | 13,004 |
Pensions | 10,958 | 12,557 |
Operating lease assets | 5,307 | 5,703 |
Subsidiaries' unremitted earnings | 1,947 | 3,046 |
Gross deferred tax liabilities | 31,598 | 34,310 |
Net deferred tax assets | 29,009 | 25,560 |
Deferred tax asset valuation allowance | (9,489) | (8,320) |
Total net deferred tax assets | $ 19,520 | $ 17,240 |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities Classified as Non-current (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Income Tax Disclosure [Abstract] | ||
Non-current deferred tax assets | $ 25,414 | $ 24,250 |
Non-current deferred tax liabilities | (5,894) | (7,010) |
Total net deferred tax assets | $ 19,520 | $ 17,240 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Income Taxes | ||
Deferred tax assets, operating loss carryforwards | $ 5,070,000 | $ 5,128,000 |
Credit carry-forwards | 19,665,000 | 17,401,000 |
Deferred tax asset valuation allowance | 9,489,000 | 8,320,000 |
Foreign tax credit carry-forwards | 9,229,000 | |
Research and development credits | 8,024,000 | |
Unrecognized tax benefits | 2,196,000 | |
Accrued for interest and penalties related to uncertain income tax | $ 39,000 | 301,000 |
Tax years subject to examination | 2018 through 2020 | |
Disproportionate tax effect related to pension plan | $ 5,375,000 | |
Earliest Tax Year | ||
Income Taxes | ||
Open tax year | 2010 | |
Latest Tax Year | ||
Income Taxes | ||
Open tax year | 2020 | |
Operating Loss Carryforward | Minimum | ||
Income Taxes | ||
Tax credit carryforward, expiration year | 2022 | |
Operating Loss Carryforward | Maximum | ||
Income Taxes | ||
Tax credit carryforward, expiration year | 2041 | |
Foreign Tax Credit Carryforward | ||
Income Taxes | ||
Valuation allowance against tax credit carryforwards | $ 1,286,000 | |
Foreign Tax Credit Carryforward | Minimum | ||
Income Taxes | ||
Tax credit carryforward, expiration year | 2028 | |
Foreign Tax Credit Carryforward | Maximum | ||
Income Taxes | ||
Tax credit carryforward, expiration year | 2031 | |
Research Tax Credit Carryforward | ||
Income Taxes | ||
Valuation allowance against tax credit carryforwards | $ 0 | |
Research Tax Credit Carryforward | Minimum | ||
Income Taxes | ||
Tax credit carryforward, expiration year | 2022 | |
Research Tax Credit Carryforward | Maximum | ||
Income Taxes | ||
Tax credit carryforward, expiration year | 2041 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Effective Income Taxes Rate (Details) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Reconciliation of effective income taxes rate | |||
Taxes at the U.S. statutory rate | 21.00% | 21.00% | 21.00% |
State income taxes, net of federal income tax benefit | 4.30% | (0.10%) | 0.40% |
Non-U.S. earnings taxed at rates different than the U.S. statutory rate | 3.10% | (0.90%) | 1.30% |
Foreign source earnings, net of associated foreign tax credits | 0.10% | (0.70%) | 0.30% |
Benefit of tax credits | 0.80% | (0.70%) | (1.50%) |
Non-deductible expenses | (1.60%) | (0.50%) | 4.10% |
Stock compensation - excess tax benefits | 0.70% | (0.10%) | (1.10%) |
Adjustment to valuation allowances | (3.10%) | 1.60% | (0.40%) |
Other changes in tax laws and rates | 0.00% | 0.00% | 0.10% |
Change in unrecognized tax benefits | 0.40% | (0.70%) | 3.30% |
Impacts of unremitted foreign earnings | (4.50%) | 5.20% | 1.30% |
Release of disproportionate tax effects of OCI | 8.80% | 0.00% | 0.00% |
Other | 1.20% | (0.40%) | (0.70%) |
Effective income tax rate | 31.20% | 23.70% | 28.10% |
Income Taxes - Reconciliation_2
Income Taxes - Reconciliation of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Reconciliation of the unrecognized tax benefits | ||
Unrecognized tax benefits, beginning balance | $ 3,128 | $ 5,016 |
Increase related to current year tax positions | 70 | 880 |
Decrease related to prior year tax positions | (237) | (1,156) |
Decrease related to lapse in statute of limitation | (125) | 0 |
Decrease related to settlements with taxing authorities | (640) | (1,612) |
Unrecognized tax benefits, ending balance | $ 2,196 | $ 3,128 |
Geographic Data - Schedule of F
Geographic Data - Schedule of Financial Information by Geographic Area (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Entity Wide Information Revenue From External Customer [Line Items] | |||
Net Sales | $ 512,925 | $ 424,066 | $ 468,999 |
Geographic Distribution | United States | |||
Entity Wide Information Revenue From External Customer [Line Items] | |||
Net Sales | 297,322 | 241,823 | 279,904 |
Geographic Distribution | China | |||
Entity Wide Information Revenue From External Customer [Line Items] | |||
Net Sales | 106,700 | 88,129 | 87,342 |
Geographic Distribution | Singapore | |||
Entity Wide Information Revenue From External Customer [Line Items] | |||
Net Sales | 37,742 | 31,985 | 32,957 |
Geographic Distribution | Czech Republic | |||
Entity Wide Information Revenue From External Customer [Line Items] | |||
Net Sales | 36,252 | 27,143 | 33,214 |
Geographic Distribution | Taiwan | |||
Entity Wide Information Revenue From External Customer [Line Items] | |||
Net Sales | 27,768 | 21,849 | 19,810 |
Geographic Distribution | Other non-U.S. | |||
Entity Wide Information Revenue From External Customer [Line Items] | |||
Net Sales | $ 7,141 | $ 13,137 | $ 15,772 |
Geographic Data - Sales Attribu
Geographic Data - Sales Attributed to Countries Based upon Origin of Sale (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Long-Lived Assets | $ 96,876 | $ 97,437 |
Geographic Distribution | United States | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Long-Lived Assets | 37,409 | 39,368 |
Geographic Distribution | China | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Long-Lived Assets | 30,461 | 30,240 |
Geographic Distribution | Mexico | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Long-Lived Assets | 13,311 | 12,441 |
Geographic Distribution | Czech Republic | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Long-Lived Assets | 9,728 | 9,856 |
Geographic Distribution | Taiwan | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Long-Lived Assets | 5,679 | 5,071 |
Geographic Distribution | Other non-U.S. | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Long-Lived Assets | $ 288 | $ 461 |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts (Details) - Allowance for Credit Losses - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Valuation and Qualifying Accounts | |||
Balance at Beginning of Period | $ 764 | $ 261 | $ 384 |
Charged to Expense | 1,020 | 513 | 141 |
Charged to Other Accounts | 4 | 152 | (9) |
(Write-offs) / Recoveries | (131) | (162) | (255) |
Balance at End of Period | $ 1,657 | $ 764 | $ 261 |