Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2019 | Jul. 19, 2019 | |
Cover page. | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2019 | |
Document Transition Report | false | |
Entity File Number | 0-10235 | |
Entity Registrant Name | GENTEX CORPORATION | |
Entity Central Index Key | 0000355811 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Incorporation, State or Country Code | MI | |
Entity Tax Identification Number | 38-2030505 | |
Entity Address, Address Line One | 600 N. Centennial | |
Entity Address, City or Town | Zeeland | |
Entity Address, State or Province | MI | |
Entity Address, Postal Zip Code | 49464 | |
City Area Code | 616 | |
Local Phone Number | 772-1800 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Title of 12(b) Security | Common Stock, par value $0.06 per share | |
Trading Symbol | GNTX | |
Security Exchange Name | NASDAQ | |
Entity Common Stock, Shares Outstanding | 254,775,618 |
Unaudited Condensed Consolidate
Unaudited Condensed Consolidated Balance Sheets - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 | [1] | Jun. 30, 2018 |
CURRENT ASSETS | ||||
Cash and cash equivalents | $ 260,332,892 | $ 217,025,278 | ||
Short-term investments | 190,565,065 | 169,412,999 | ||
Accounts receivable, net | 226,426,332 | 213,537,799 | ||
Inventories | 225,094,463 | 225,281,599 | ||
Prepaid expenses and other | 27,984,155 | 25,672,579 | ||
Total current assets | 930,402,907 | 850,930,254 | ||
PLANT AND EQUIPMENT—NET | 501,398,382 | 498,473,766 | ||
OTHER ASSETS | ||||
Goodwill | 307,365,845 | 307,365,845 | ||
Long-term investments | 121,061,221 | 137,979,082 | ||
Intangible assets, net | 260,025,000 | 269,675,000 | ||
Patents and other assets, net | 22,549,518 | 21,010,121 | ||
Total other assets | 711,001,584 | 736,030,048 | ||
Total assets | 2,142,802,873 | 2,085,434,068 | ||
CURRENT LIABILITIES | ||||
Accounts payable | 90,041,087 | 92,810,316 | ||
Accrued liabilities | 87,519,710 | 76,350,603 | ||
Total current liabilities | 177,560,797 | 169,160,919 | ||
OTHER NON-CURRENT LIABILITIES | 6,190,219 | 0 | ||
DEFERRED INCOME TAXES | 54,717,622 | 54,521,489 | ||
Total liabilities | 238,468,638 | 223,682,408 | ||
SHAREHOLDERS’ INVESTMENT | ||||
Common stock | 15,286,747 | 15,559,717 | ||
Additional paid-in capital | 777,238,253 | 745,324,144 | ||
Retained earnings | 1,111,310,014 | 1,102,468,137 | ||
Accumulated other comprehensive income (loss) | 499,221 | (1,600,338) | $ (479,104) | |
Total shareholders’ investment | 1,904,334,235 | 1,861,751,660 | $ 1,921,499,312 | |
Total liabilities and shareholders’ investment | $ 2,142,802,873 | $ 2,085,434,068 | ||
[1] | The condensed consolidated balance sheet at December 31, 2018 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. |
Unaudited Condensed Consolida_2
Unaudited Condensed Consolidated Statements of Income - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | ||
Income Statement [Abstract] | |||||
NET SALES | $ 468,711,354 | $ 454,981,440 | $ 937,300,351 | $ 920,401,545 | |
COST OF GOODS SOLD | 292,173,750 | 282,176,968 | 591,118,243 | 574,968,672 | |
Gross profit | 176,537,604 | 172,804,472 | 346,182,108 | 345,432,873 | |
OPERATING EXPENSES: | |||||
Engineering, research and development | 28,359,343 | 27,200,465 | 56,448,524 | 53,249,723 | |
Selling, general & administrative | 20,273,295 | 18,921,003 | 40,232,286 | 36,984,813 | |
Total operating expenses | 48,632,638 | 46,121,468 | 96,680,810 | 90,234,536 | |
Income from operations | 127,904,966 | 126,683,004 | 249,501,298 | 255,198,337 | |
OTHER INCOME (LOSS) | |||||
Investment income | 2,140,387 | 2,844,133 | 5,403,128 | 4,881,738 | |
Other income (loss), net | 237,191 | (554,359) | 286,660 | 652,634 | |
Total other income | 2,377,578 | 2,289,774 | 5,689,788 | 5,534,372 | |
INCOME BEFORE PROVISION FOR INCOME TAXES | 130,282,544 | 128,972,778 | 255,191,086 | 260,732,709 | |
PROVISION FOR INCOME TAXES | 21,323,919 | 19,948,796 | 41,952,050 | 40,459,984 | |
NET INCOME | $ 108,958,625 | $ 109,023,982 | $ 213,239,036 | $ 220,272,725 | |
EARNINGS PER SHARE: | |||||
Basic (in dollars per share) | [1] | $ 0.42 | $ 0.40 | $ 0.82 | $ 0.81 |
Diluted (in dollars per share) | [1] | 0.42 | 0.40 | 0.82 | 0.80 |
Cash Dividends Declared per Share (in dollars per share) | $ 0.115 | $ 0.110 | $ 0.230 | $ 0.220 | |
[1] | (1) Earnings Per Share has been adjusted to exclude the portion of net income allocated to participating securities as a result of share-based payment awards. |
Unaudited Condensed Consolida_3
Unaudited Condensed Consolidated Statements of Comprehensive Income - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 108,958,625 | $ 109,023,982 | $ 213,239,036 | $ 220,272,725 |
Other comprehensive income (loss) before tax: | ||||
Foreign currency translation adjustments | (475,686) | (2,465,603) | (176,687) | (839,425) |
Unrealized gains on derivatives | 0 | 15,556 | 0 | 82,604 |
Unrealized gains (losses) on debt securities, net | 1,583,089 | (302,252) | 2,881,325 | (323,532) |
Other comprehensive income (loss), before tax | 1,107,403 | (2,752,299) | 2,704,638 | (1,080,353) |
Income tax impact related to components of other comprehensive income | 332,448 | (60,206) | 605,079 | (50,594) |
Other comprehensive income (loss), net of tax | 774,955 | (2,692,093) | 2,099,559 | (1,029,759) |
Comprehensive Income | $ 109,733,580 | $ 106,331,889 | $ 215,338,595 | $ 219,242,966 |
Unaudited Condensed Consolida_4
Unaudited Condensed Consolidated Statements of Shareholders' Investment - USD ($) | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Beginning balance | $ 1,857,074,747 | $ 1,861,751,660 | [1] | $ 1,969,977,496 | $ 2,049,518,261 | $ 1,861,751,660 | [1] | $ 2,049,518,261 |
Issuance of common stock and the tax benefit of stock plan transactions | 31,420,260 | 10,514,554 | 16,729,546 | 36,267,047 | ||||
Repurchases of common stock (in shares) | (7,800,000) | |||||||
Repurchases of common stock | (69,871,143) | (96,267,229) | (146,633,543) | (202,572,378) | ||||
Stock-based compensation expense related to stock options, employee stock purchases and restricted stock | 5,276,201 | 4,862,947 | 4,675,468 | 3,977,471 | ||||
Impact of ASU 2016-01 adoption | 0 | |||||||
Dividends declared | (29,299,410) | (29,392,200) | (29,581,544) | (30,123,981) | ||||
Net income (loss) | 108,958,625 | 104,280,411 | 109,023,982 | 111,248,743 | $ 213,239,036 | 220,272,725 | ||
Other comprehensive income (loss) | 774,955 | 1,324,604 | (2,692,093) | 1,662,333 | ||||
Ending balance | $ 1,904,334,235 | $ 1,857,074,747 | $ 1,921,499,312 | $ 1,969,977,496 | $ 1,904,334,235 | $ 1,921,499,312 | ||
Common Stock | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Beginning balance (in shares) | 255,584,345 | 259,328,613 | 273,854,377 | 280,281,321 | 259,328,613 | 280,281,321 | ||
Beginning balance | $ 15,335,060 | $ 15,559,717 | $ 16,431,263 | $ 16,816,879 | $ 15,559,717 | $ 16,816,879 | ||
Issuance of common stock and the tax benefit of stock plan transactions (in shares) | 2,269,483 | 980,670 | 1,353,561 | 2,904,555 | ||||
Issuance of common stock and the tax benefit of stock plan transactions | $ 136,170 | $ 58,840 | $ 81,213 | $ 174,274 | ||||
Repurchases of common stock (in shares) | (3,074,709) | (4,724,938) | (6,284,817) | (9,331,499) | ||||
Repurchases of common stock | $ (184,483) | $ (283,497) | $ (377,089) | $ (559,890) | ||||
Ending balance (in shares) | 254,779,119 | 255,584,345 | 268,923,121 | 273,854,377 | 254,779,119 | 268,923,121 | ||
Ending balance | $ 15,286,747 | $ 15,335,060 | $ 16,135,387 | $ 16,431,263 | $ 15,286,747 | $ 16,135,387 | ||
Additional Paid-In Capital | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Beginning balance | 748,641,461 | 745,324,144 | 742,491,728 | 723,510,672 | 745,324,144 | 723,510,672 | ||
Issuance of common stock and the tax benefit of stock plan transactions | 31,284,090 | 10,455,714 | 16,648,333 | 36,092,773 | ||||
Repurchases of common stock | (7,963,499) | (12,001,344) | (15,020,714) | (21,089,188) | ||||
Stock-based compensation expense related to stock options, employee stock purchases and restricted stock | 5,276,201 | 4,862,947 | 4,675,468 | 3,977,471 | ||||
Ending balance | 777,238,253 | 748,641,461 | 748,794,815 | 742,491,728 | 777,238,253 | 748,794,815 | ||
Retained Earnings | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Beginning balance | 1,093,373,960 | 1,102,468,137 | 1,208,841,516 | 1,301,997,327 | 1,102,468,137 | 1,301,997,327 | ||
Repurchases of common stock | (61,723,161) | (83,982,388) | (131,235,740) | (180,923,300) | ||||
Impact of ASU 2016-01 adoption | 6,642,727 | |||||||
Dividends declared | (29,299,410) | (29,392,200) | (29,581,544) | (30,123,981) | ||||
Net income (loss) | 108,958,625 | 104,280,411 | 109,023,982 | 111,248,743 | ||||
Ending balance | 1,111,310,014 | 1,093,373,960 | 1,157,048,214 | 1,208,841,516 | 1,111,310,014 | 1,157,048,214 | ||
Accumulated Other Comprehensive Income (Loss) | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Beginning balance | (275,734) | (1,600,338) | 2,212,989 | 7,193,383 | (1,600,338) | 7,193,383 | ||
Impact of ASU 2016-01 adoption | (6,642,727) | |||||||
Other comprehensive income (loss) | 774,955 | 1,324,604 | (2,692,093) | 1,662,333 | ||||
Ending balance | $ 499,221 | $ (275,734) | $ (479,104) | $ 2,212,989 | $ 499,221 | $ (479,104) | ||
[1] | The condensed consolidated balance sheet at December 31, 2018 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. |
Unaudited Condensed Consolida_5
Unaudited Condensed Consolidated Statements of Shareholders' Investment (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Statement of Stockholders' Equity [Abstract] | ||||||
Dividends declared (in dollars per share) | $ 0.115 | $ 0.115 | $ 0.110 | $ 0.110 | $ 0.230 | $ 0.220 |
Unaudited Condensed Consolida_6
Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income (loss) | $ 213,239,036 | $ 220,272,725 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 53,296,388 | 55,908,679 |
(Gain) on disposal of assets | (95,658) | (130,647) |
Loss on disposal of assets | 340,070 | 10,544 |
(Gain) on sale of investments | (218,981) | (1,245,359) |
Loss on sale of investments | 0 | 529,484 |
Deferred income taxes | 196,133 | (2,743,537) |
Stock-based compensation expense related to employee stock options, employee stock purchases and restricted stock | 10,139,148 | 8,652,939 |
Change in operating assets and liabilities: | ||
Accounts receivable, net | (12,888,533) | (8,284,592) |
Inventories | 187,136 | 4,389,930 |
Prepaid expenses and other | (2,311,576) | (9,171,506) |
Accounts payable | (2,769,229) | 16,885,979 |
Accrued liabilities, excluding dividends declared and short-term debt | 14,353,360 | 7,309,915 |
Net cash provided by operating activities | 273,467,294 | 292,384,554 |
Activity in available-for-sale securities: | ||
Sales proceeds | 28,845,319 | 53,822,336 |
Maturities and calls | 9,714,000 | 21,884,000 |
Purchases | (40,298,297) | (177,243,275) |
Plant and equipment additions | (45,504,667) | (51,860,448) |
Proceeds from sale of plant and equipment | 227,738 | 179,700 |
Decrease in other assets | (1,022,057) | (2,965,781) |
Net cash (used for) investing activities | (48,037,964) | (156,183,468) |
CASH FLOWS (USED FOR) FINANCING ACTIVITIES: | ||
Repayment of debt | 0 | (54,875,000) |
Issuance of common stock from stock plan transactions | 41,934,814 | 52,996,593 |
Cash dividends paid | (57,918,158) | (58,152,113) |
Repurchases of common stock | (166,138,372) | (349,205,921) |
Net cash (used for) financing activities | (182,121,716) | (409,236,441) |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 43,307,614 | (273,035,355) |
CASH AND CASH EQUIVALENTS, beginning of period | 217,025,278 | 569,734,496 |
CASH AND CASH EQUIVALENTS, end of period | $ 260,332,892 | $ 296,699,141 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of PresentationThe unaudited condensed consolidated financial statements included herein have been prepared by the Company, pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States have been condensed or omitted pursuant to such rules and regulations, although the Company believes that the disclosures are adequate to make the information presented not misleading. It is suggested that these unaudited condensed consolidated financial statements be read in conjunction with the financial statements and notes thereto included in the Company's 2018 annual report on Form 10-K. In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all adjustments, consisting of only a normal and recurring nature, necessary to present fairly the financial position of the Company as of June 30, 2019, and the results of operations and cash flows for the interim periods presented. |
Adoption of New Accounting Pron
Adoption of New Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2019 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Adoption of New Accounting Pronouncements | Adoption of New Accounting Pronouncements New Accounting Pronouncements Adopted in Fiscal Year 2019 Effective January 1, 2019, the Company adopted Accounting Standards Update ("ASU") 2016-02, Leases , which provides guidance for lease accounting. The new guidance contained in the ASU stipulates that lessees will need to recognize a right-of-use ("ROU") asset and a lease liability for substantially all leases (other than leases that meet the definition of a short-term lease). The liability will be equal to the present value of lease payments. Treatment in the consolidated statements of income will be similar to the historical treatment of operating and capital leases. The adoption of this standard did not have a material impact on the Company's consolidated balance sheet or consolidated income statement. Disclosures are now required to meet the objective of enabling users of financial statements to assess the amount, timing, and uncertainty of cash flows arising from leases. New Accounting Pronouncements Not Yet Adopted In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instrument s. The standard requires a change in the measurement approach for credit losses on financial assets measured on an amortized cost basis from an incurred loss method to an expected loss method, thereby eliminating the requirement that a credit loss be considered probable to impact the valuation of a financial asset measured on an amortized cost basis. The standard requires the measurement of expected credit losses to be based on relevant information about past events, including historical experience, current conditions, and a reasonable and supportable forecast that affects the collectability of the related financial asset. The Company will be required to adopt ASU 2016-13 as of January 1, 2020. Early adoption is permitted. The Company is currently evaluating the impact of ASU 2016-13 on the Company’s consolidated financial statements. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 6 Months Ended |
Jun. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill represents the cost of an acquisition in excess of the fair values assigned to identifiable net assets acquired. The Company recorded Goodwill of $307.4 million as part of the HomeLink ® acquisition. The carrying value of Goodwill as of both December 31, 2018 and June 30, 2019 was $307.4 million. In addition to annual impairment testing, which is performed as of the first day of the fourth quarter, the Company continuously monitors for events and circumstances that could negatively impact the key assumptions in determining fair value thus resulting in the need for interim impairment testing, including long-term revenue growth projections, profitability, discount rates, recent market valuations from transactions by comparable companies, volatility in the Company's market capitalization, and general industry, market and macroeconomic conditions. No such events or circumstances in the most recently completed quarter indicated the need for interim impairment testing. The patents and intangible assets and related change in carrying values are set forth in the tables below: As of June 30, 2019: Other Intangible Assets Gross Accumulated Amortization Net Assumed Useful Life Gentex Patents $ 37,307,011 $ (22,002,673) $ 15,304,338 Various Other Intangible Assets HomeLink ® Trade Names and Trademarks $ 52,000,000 $ — $ 52,000,000 Indefinite HomeLink ® Technology 180,000,000 (86,250,000) 93,750,000 12 years Existing Customer Platforms 43,000,000 (24,725,000) 18,275,000 10 years Exclusive Licensing Agreement 96,000,000 — 96,000,000 Indefinite Total Other Intangible Assets $ 371,000,000 $ (110,975,000) $ 260,025,000 Total Patents & Other Intangible Assets $ 408,307,011 $ (132,977,673) $ 275,329,338 As of December 31, 2018: Other Intangible Assets Gross Accumulated Amortization Net Assumed Useful Life Gentex Patents $ 36,737,434 $ (21,014,168) $ 15,723,266 Various Other Intangible Assets HomeLink ® Trade Names and Trademarks $ 52,000,000 $ — $ 52,000,000 Indefinite HomeLink ® Technology 180,000,000 (78,750,000) 101,250,000 12 years Existing Customer Platforms 43,000,000 (22,575,000) 20,425,000 10 years Exclusive Licensing Agreement 96,000,000 — 96,000,000 Indefinite Total Other Intangible Assets $ 371,000,000 $ (101,325,000) $ 269,675,000 Total Patents & Other Intangible Assets $ 407,737,434 $ (122,339,168) $ 285,398,266 Amortization expense on patents and intangible assets was approximately $5.6 million and $11.2 million during the three and six months ended June 30, 2019, respectively, compared to approximately $5.6 million and $11.3 million for the same periods ended June 30, 2018, respectively. Excluding the impact of any future acquisitions, the Company continues to estimate amortization expense for each of the years ended December 31, 2019, 2020, and 2021 to be approximately $22 million annually, approximately $21 million for 2022, and approximately $19 million for the year ended December 31, 2023. |
Investments
Investments | 6 Months Ended |
Jun. 30, 2019 | |
Investments [Abstract] | |
Investments | The Company follows the provisions of Accounting Standards Codification ("ASC") 820, Fair Value Measurements and Disclosures , for its financial assets and liabilities, and for its non-financial assets and liabilities subject to fair value measurements. ASC 820 provides a framework for measuring the fair value of assets and liabilities. This framework is intended to provide increased consistency in how fair value determinations are made under various existing accounting standards that permit, or in some cases, require estimates of fair-market value. This standard also expanded financial statement disclosure requirements about a company’s use of fair-value measurements, including the effect of such measurement on earnings. The cost of securities sold is based on the specific identification method. The Company determines the fair value of its government securities, municipal bonds, and corporate bonds by utilizing monthly valuation statements that are provided by its broker. The broker determines the investment valuation by utilizing the bid price in the market and also refers to third party sources to validate valuations, and as such are classified as Level 2 assets. The Company's certificates of deposit have remaining maturities of less than one year and are considered as Level 1 assets. These investments are carried at cost, which approximates fair value. The Company will also periodically make technology investments in certain non-consolidated third-parties. These equity investments are accounted for in accordance with ASC 321, Investments - Equity Securities . Equity investments that do not have readily determinable fair values, and where the Company has not identified any observable events that would cause adjustment of the valuation to date, such equity investments are held at cost. These technology investments totaled $7.6 million and $3.85 million as of June 30, 2019 and December 31, 2018, respectively. These investments are classified within Long-Term Investments in the consolidated balance sheet. Assets or liabilities that have recurring fair value measurements are shown below as of June 30, 2019 and December 31, 2018: As of June 30, 2019: Fair Value Measurements at Reporting Date Using Total as of Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Description June 30, 2019 (Level 1) (Level 2) (Level 3) Cash & Cash Equivalents $ 260,332,892 $ 260,332,892 $ — $ — Short-Term Investments: Certificate of Deposit 150,299,384 150,299,384 — — Government Securities 23,953,999 — 23,953,999 — Corporate Bonds 15,027,102 — 15,027,102 — Other 1,284,580 1,284,580 — — Long-Term Investments: Corporate Bonds 62,317,048 — 62,317,048 — Municipal Bonds 28,131,587 — 28,131,587 — Government Securities 23,012,586 — 23,012,586 — Total $ 564,359,178 $ 411,916,856 $ 152,442,322 $ — As of December 31, 2018: Fair Value Measurements at Reporting Date Using Total as of Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Description December 31, 2018 (Level 1) (Level 2) (Level 3) Cash & Cash Equivalents $ 217,025,278 $ 217,025,278 $ — $ — Short-Term Investments: Certificate of Deposit 150,299,384 150,299,384 — — Government Securities 9,176,227 — 9,176,227 — Corporate Bonds 6,967,700 — 6,967,700 — Other 2,219,688 2,219,688 — — Long-Term Investments: Corporate Bonds 60,369,930 — 60,369,930 — Municipal Bonds 18,025,432 — 18,025,432 — Government Securities 56,483,720 — 56,483,720 — Total $ 520,567,359 $ 369,544,350 $ 151,023,009 $ — The amortized cost, unrealized gains and losses, and market value of investment securities are shown as of June 30, 2019 and December 31, 2018: As of June 30, 2019: Unrealized Cost Gains Losses Market Value Short-Term Investments: Certificate of Deposit $ 150,299,384 $ — $ — $ 150,299,384 Government Securities 23,895,390 59,368 (759) 23,953,999 Corporate Bonds 14,968,562 58,540 — 15,027,102 Other 1,284,580 — — 1,284,580 Long-Term Investments: Corporate Bonds 61,354,213 996,062 (33,227) 62,317,048 Municipal Bonds 27,088,064 1,050,416 (6,893) 28,131,587 Government Securities 22,785,296 227,290 — 23,012,586 Total $ 301,675,489 $ 2,391,676 $ (40,879) $ 304,026,286 As of December 31, 2018: Unrealized Cost Gains Losses Market Value Short-Term Investments: Certificate of Deposit $ 150,299,384 $ — $ — $ 150,299,384 Government Securities 9,186,586 — (10,359) 9,176,227 Corporate Bonds 6,981,305 — (13,605) 6,967,700 Other 2,219,688 — — 2,219,688 Long-Term Investments: Corporate Bonds 60,659,498 50,340 (339,908) 60,369,930 Municipal Bonds 17,840,518 184,914 — 18,025,432 Government Securities 56,280,552 205,553 (2,385) 56,483,720 Total $ 303,467,531 $ 440,807 $ (366,257) $ 303,542,081 Unrealized losses on investments as of June 30, 2019, are as follows: Aggregate Unrealized Losses Aggregate Fair Value Less than one year $ 40,879 $ 5,823,459 Greater than one year — — Total $ 40,879 $ 5,823,459 Unrealized losses on investments as of December 31, 2018, are as follows: Aggregate Unrealized Losses Aggregate Fair Value Less than one year $ 365,824 $ 68,722,980 Greater than one year 433 3,000,000 Total $ 366,257 $ 71,722,980 ASC 320, Accounting for Certain Investments in Debt and Equity Securities , as amended, provides guidance on determining when an investment is other than temporarily impaired. No investment losses were considered to be other than temporary during the periods presented. The Company has the intention and current ability to hold its debt investments until the amortized cost basis has been recovered. Fixed income securities as of June 30, 2019 have contractual maturities as follows: Due within one year $ 189,280,485 Due between one and five years 91,584,216 Due over five years 21,877,006 $ 302,741,707 |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories consisted of the following at the respective balance sheet dates: June 30, 2019 December 31, 2018 Raw materials $ 146,975,452 $ 139,058,541 Work-in-process 31,237,909 35,386,615 Finished goods 46,881,102 50,836,443 Total Inventory $ 225,094,463 $ 225,281,599 |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The Company has unvested share-based payment awards with a right to receive non-forfeitable dividends, which are considered participating securities under ASC 260, Earnings Per Share . The Company allocates earnings to participating securities and computes earnings per share using the two-class method. Under the two-class method, net income per share is computed by dividing net income allocated to common shareholders by the weighted average number of common shares outstanding for the period. In applying the two-class method, net income is allocated to both common shares and participating securities based on their respective weighted average shares outstanding for the period. The following table sets forth the computation of basic and diluted net income per common share under the two-class method for the three and six months ended June 30, 2019: Three Months Ended June 30, Six Months Ended June 30, 2019 2019 Basic Earnings Per Share Net Income $ 108,958,625 $ 213,239,036 Less: Allocated to participating securities 1,256,243 2,348,020 Net Income available to common shareholders $ 107,702,382 $ 210,891,016 Basic weighted average shares outstanding 255,219,868 256,350,600 Net Income per share - Basic $ 0.42 $ 0.82 Diluted Earnings Per Share Allocation of Net Income used in basic computation $ 107,702,382 $ 210,891,016 Reallocation of undistributed earnings 4,848 8,842 Net Income available to common shareholders - Diluted $ 107,707,230 $ 210,899,858 Number of shares used in basic computation 255,219,868 256,350,600 Additional weighted average dilutive common stock equivalents 1,359,753 1,344,285 Diluted weighted average shares outstanding 256,579,621 257,694,885 Net income per share - Diluted $ 0.42 $ 0.82 Shares related to stock plans not included in diluted average common shares outstanding because their effect would be anti-dilutive 1,013,332 1,011,948 |
Stock-Based Compensation Plans
Stock-Based Compensation Plans | 6 Months Ended |
Jun. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation Plans | Stock-Based Compensation Plans As of June 30, 2019, the Company had two equity incentive plans, which include the Gentex Corporation 2019 Omnibus Incentive Plan ("2019 Omnibus Plan"), and an employee stock purchase plan. Those plans and any prior material amendments thereto have previously been approved by shareholders. In February 2019, the Company's Compensation Committee and Board of Directors approved the 2019 Omnibus Plan, which was then approved by shareholders in May 2019. The 2019 Omnibus Plan provides for the potential awards to: i) employees; and ii) non-employee directors of the Company or its subsidiaries, which awards may be stock options, both incentive stock options and non-qualified stock options, appreciation rights, restricted stock, restricted stock units, performance share awards and performance units, and other awards that are stock-based, cash-based or a combination of both. Upon shareholder approval, the 2019 Omnibus Plan replaced the Company's Employee Stock Option Plan, Second Restricted Stock Plan, and Amended and Restated Non-Employee Director Stock Option Plan (the "Prior Plans"), which Prior Plans were also approved by shareholders. Any existing awards previously granted under the Prior Plans, including those made to non-officers in the first quarter of 2019, remain outstanding in accordance with their terms and are governed by the Prior Plans as applicable. Readers should refer to Note 5 of the consolidated financial statements in the Company's Annual Report on Form 10-K for the calendar year ended December 31, 2018, for additional information related to the Prior Plans. The Company recognized compensation expense for share-based payments of $5,200,045 and $9,986,839 for the three and six months ended June 30, 2019, respectively, and $4,465,634 and $8,366,949 for the three and six months ended June 30, 2018, respectively. Compensation cost for share based payment awards capitalized as part of inventory as of June 30, 2019 and December 31, 2018 was $319,080 and $242,673, respectively. 2019 Omnibus Incentive Plan The Omnibus Incentive Plan was approved by shareholders during the second quarter (thereby replacing the Prior Plans) and covers 45,000,000 shares of common stock. The purpose of the 2019 Omnibus Incentive Plan is to attract and retain directors, officers, and other employees of the Company and its subsidiaries and to motivate and provide such persons incentives and rewards for performance. Employee Stock Options The 2019 Omnibus Plan replaced the Company's shareholder approved Employee Stock Option Plan. Under the 2019 Omnibus Plan and the Employee Stock Option Plan, the option exercise price equals the stock’s market price on the date of grant. The options vest after one to five years, and expire after five to ten years. As of June 30, 2019, there was $7,397,810 of unrecognized compensation cost related to share-based payments, which is expected to be recognized over the remaining vesting periods. The fair value of each option grant was estimated on the date of grant using the Black-Scholes option pricing model with the following weighted-average assumptions for the indicated periods: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Dividend Yield (1) 2.03 % 1.99 % 2.03 % 2.09 % Expected volatility (2) 23.71 % 23.27 % 23.64 % 26.68 % Risk-free interest rate (3) 1.76 % 2.73 % 2.00 % 2.83 % Expected term of options (years) (4) 4.17 4.19 4.18 4.60 Weighted-avg. grant date fair value $4.23 $4.28 $3.96 $5.03 1. Represents the Company’s estimated cash dividend yield over the expected term of option grant. 2. Amount is determined based on analysis of historical price volatility of the Company’s common stock. The expected volatility is based on the daily percentage change in the price of the stock over a period equal to the expected term of the option grant. 3. Represents the U.S. Treasury yield over the expected term of the option grant. 4. Represents the period of time that options granted are expected to be outstanding. Based on analysis of historical option exercise activity, the Company has determined that all employee groups exhibit similar exercise and post-vesting termination behavior. Restricted Shares The 2019 Omnibus Plan replaced the Company's shareholder approved Second Restricted Stock Plan. Restricted shares awarded under the 2019 Omnibus Plan and the Second Restricted Stock Plan entitle the shareholder to all rights of common stock ownership except that the shares may not be sold, transferred, pledged, exchanged or otherwise disposed of during the restriction period. The restriction period is determined by the Compensation Committee, appointed by the Board of Directors, but may not exceed ten years under the terms of such plans. As of June 30, 2019, the Company had unearned stock-based compensation of $43,851,893 associated with the restricted stock grants issued under the 2019 Omnibus Plan and the prior plan. The unearned stock-based compensation related to these grants is being amortized to compensation expense over the applicable restriction periods. Amortization expense from restricted stock grants in the three and six months ended June 30, 2019 was $3,274,411 and $6,046,175, respectively, and for the three and six months ended June 30, 2018 was $2,189,938 and $3,832,998, respectively. Performance Shares Performance shares awarded under the 2019 Omnibus Plan are considered performance condition awards as attainment is based on the Company's performance relative to pre-established metrics. The fair value of such performance share awards was determined using the Company's closing stock price on the date of grant. The expected attainment of the metrics for these awards is then analyzed each reporting period, and the related expense is adjusted based on expected attainment, if the then expected attainment differs from previous expectations. The cumulative effect on current and prior periods of a change in expected attainment is recognized in the period of change. As of June 30, 2019, the Company had unearned stock-based compensation of $2,726,924 associated with these performance share grants. The unearned stock-based compensation related to these grants is being amortized to compensation expense over the applicable performance periods. Amortization expense from performance share grants in the three months ended June 30, 2019 was $257,756. No amortization expense for performance share grants was incurred in 2018. Employee Stock Purchase Plan The Company has an employee stock purchase plan covering 2,000,000 shares of common stock. Under the plan, the Company sells shares at 85% of the stock’s market price at date of purchase. Under ASC 718, Compensation - Stock Compensation , the 15% discounted value is recognized as compensation expense. As of June 30, 2019, the Company has issued 1,063,052 shares under this plan. |
Comprehensive Income
Comprehensive Income | 6 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
Comprehensive Income | Comprehensive Income Comprehensive income reflects the change in equity of a business enterprise during a period from transactions and other events and circumstances from non-owner sources. For the Company, comprehensive income represents net income adjusted for unrealized gains and losses on certain debt investments, foreign currency translation adjustments, and derivatives. The following table presents the net changes in the Company's accumulated other comprehensive income (loss) by component (all amounts shown are net of tax): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Foreign currency translation adjustments: Balance at beginning of period $ (1,375,888) $ 2,271,208 $ (1,674,887) $ 645,030 Other Comprehensive (loss) income before reclassifications (475,686) (2,465,603) (176,687) (839,425) Net current-period change (475,686) (2,465,603) (176,687) (839,425) Balance at end of period (1,851,574) (194,395) (1,851,574) (194,395) Unrealized gains (losses) on available-for-sale debt securities: Balance at beginning of period 1,100,154 (33,160) 74,549 (16,349) Other Comprehensive income (loss) before reclassifications 1,353,661 (238,555) 2,449,241 309,951 Amounts reclassified from accumulated other comprehensive income (103,020) (224) (172,995) (565,541) Net current-period change 1,250,641 (238,779) 2,276,246 (255,590) Balance at end of period 2,350,795 (271,939) 2,350,795 (271,939) Unrealized gains (losses) on derivatives: Balance at beginning of period — (25,059) — (78,026) Other comprehensive income before reclassifications — 17,246 — 60,419 Amounts reclassified from accumulated other comprehensive income — (4,957) — 4,837 Net current-period change — 12,289 — 65,256 Balance at end of period — (12,770) — (12,770) Accumulated other comprehensive income (loss), end of period $ 499,221 $ (479,104) $ 499,221 $ (479,104) The following table presents details of reclassifications out of accumulated other comprehensive income for the three and six months ended June 30, 2019 and 2018. Details about Accumulated Other Comprehensive Income Components Amounts Reclassified from Other Comprehensive Income Affected Line item in the Statement of Consolidated Income Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Unrealized gains on available-for-sale debt securities Realized gain on sale $ 130,405 $ 284 $ 218,981 $ 715,875 Other income (loss), net Provision for income taxes (27,385) (60) (45,986) (150,334) Provision for income taxes $ 103,020 $ 224 $ 172,995 $ 565,541 Net of tax Unrealized gains (losses) on derivatives Realized gain (loss) on interest rate swap $ — $ 6,275 $ — $ (6,123) Other income (loss), net Provision for income taxes — (1,318) — 1,286 Provision for income taxes $ — $ 4,957 $ — $ (4,837) Net of tax Total net reclassifications for the period $ 103,020 $ 5,181 $ 172,995 $ 560,704 Net of tax |
Debt and Financing Arrangements
Debt and Financing Arrangements | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Debt and Financing Arrangements | Debt and Financing Arrangements On October 15, 2018, the Company entered into a new Credit Agreement (“Credit Agreement”) with PNC as the administrative agent and sole lender. Pursuant to this new Credit Agreement, the Company has access to a $150 million senior revolving credit facility (“Revolver”). Under the terms of the Credit Agreement, the Company is entitled to further request an additional aggregate principal amount of up to $100 million, subject to the satisfaction of certain conditions. In addition, the Company is entitled to the benefit of swing loans from amounts otherwise available under the Revolver in the aggregate principal amount of up to $20 million and to request Letters of Credit from amounts otherwise available under the Revolver in the aggregate principle amount up to $20 million, both subject to certain conditions. The obligations of the Company under the Credit Agreement are not secured, but are subject to certain covenants. As of June 30, 2019, there was no outstanding balance on the Revolver. The Revolver expires on October 15, 2023. The Credit Agreement contains customary representations and warranties and certain covenants that place certain limitations on the Company. As of June 30, 2019, the Company was in compliance with its covenants under the Credit Agreement. During the three and six months ended June 30, 2018, under a previous credit facility, interest expense was $0.3 million and $0.8 million, respectively, which was netted with the "Other income (loss), net" section of the Unaudited Consolidated Statements of Income . |
Equity
Equity | 6 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
Equity | Equity The decrease in common stock during the six months ended June 30, 2019, was primarily due to the repurchases of 7.8 million shares, partially offset by the issuance of 3.3 million shares of the Company’s common stock under the Company’s stock-based compensation plans. The total net decrease was 4.5 million shares. The Company announced a $0.005 (1/2 cent) per share increase in its quarterly cash dividend rate during the first quarter of 2019. As such, the Company recorded a cash dividend of $0.115 during the second quarter of 2019 as compared to a cash dividend of $0.110 per share during the second quarter of 2018. The second quarter 2019 dividend of $29.3 million was declared on June 11, 2019, and was paid on July 24, 2019. |
Contingencies
Contingencies | 6 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | ContingenciesThe Company is periodically involved in legal proceedings, legal actions and claims arising in the normal course of business, including proceedings relating to product liability, intellectual property, safety and health, employment, regulatory, and other matters. Such matters are subject to many uncertainties and outcomes are not predictable. The Company does not believe, however, that at the current time any of these matters constitute material pending legal proceedings that will have a material adverse effect on the financial position or future results of operations or cash flows of the Company. |
Segment Reporting
Segment Reporting | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting The Company's automotive segment develops and manufactures digital vision and connected car products and electronics, including: automatic-dimming rearview mirrors with and without electronic features; non-auto dimming rearview mirrors with and without electronic features; and other electronics. The Company also develops and manufactures variably dimming windows for the aerospace industry and fire protection products for the commercial construction industry, which are combined into the "Other" segment shown below. Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Revenue: Automotive Products $ 456,625,064 $ 444,245,425 $ 912,423,707 $ 899,210,799 Other 12,086,290 10,736,015 24,876,644 21,190,746 Total $ 468,711,354 $ 454,981,440 $ 937,300,351 $ 920,401,545 Income from operations: Automotive Products $ 124,295,223 $ 123,758,195 $ 241,247,925 $ 248,720,353 Other 3,609,743 2,924,809 8,253,373 6,477,984 Total $ 127,904,966 $ 126,683,004 $ 249,501,298 $ 255,198,337 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income TaxesThe effective tax rate was 16.4% in the six months ended June 30, 2019 compared to 15.5% for the same period in 2018. Generally, effective tax rates for these periods differ from statutory federal income tax rates, due to provisions for state and local income taxes, permanent tax differences, and the foreign-derived intangible income tax deduction. The increase in the effective tax rate for the six months ended June 30, 2019 compared to the same period of 2018 was primarily due to a decrease in discrete tax benefits related to stock-based compensation in the current year. |
Revenue
Revenue | 6 Months Ended |
Jun. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue The following table shows the Company’s Automotive revenue and Other Products revenue disaggregated by geographical location for Automotive Products for the three and six month periods ended June 30, 2019 and June 30, 2018: Revenue Three Months Ended June 30, 2019 Three Months Ended June 30, 2018 Six Months Ended Six Months Ended Automotive Products U.S. $ 144,547,946 $ 142,896,639 $ 285,931,010 $ 283,209,626 Germany 73,151,692 85,642,205 151,601,619 177,435,746 Japan 55,722,292 48,647,082 112,055,986 98,480,079 Mexico 42,178,705 22,358,617 86,589,093 45,457,427 Other 141,024,429 144,700,882 276,245,999 294,627,921 Total Automotive Products $ 456,625,064 $ 444,245,425 $ 912,423,707 $ 899,210,799 Other Products (U.S.) 12,086,290 10,736,015 24,876,644 21,190,746 Total Revenue $ 468,711,354 $ 454,981,440 $ 937,300,351 $ 920,401,545 Revenue by geographic area may fluctuate based on many factors, including exposure to local economic, political and labor conditions; unexpected changes in laws, regulations, trade or monetary or fiscal policy, including interest rates, foreign currency exchange rates and changes in the rate of inflation in the U.S. and other foreign countries; and tariffs, quotas, customs and other import or export restrictions and other trade barriers. The following table disaggregates the Company’s Automotive revenue and Other revenue by major source for the three and six month periods ended June 30, 2019 and June 30, 2018: Revenue Three Months Ended June 30, 2019 Three Months Ended June 30, 2018 Six Months Ended Six Months Ended Automotive Segment Automotive Mirrors & Electronics $ 413,429,267 $ 396,547,385 $ 822,400,934 $ 800,789,013 HomeLink Modules* 43,195,797 47,698,040 90,022,773 98,421,786 Total Automotive Products $ 456,625,064 $ 444,245,425 $ 912,423,707 $ 899,210,799 Other Segment Fire Protection Products 6,359,266 5,813,210 12,211,499 11,092,868 Windows Products 5,727,024 4,922,805 12,665,145 10,097,878 Total Other $ 12,086,290 $ 10,736,015 $ 24,876,644 $ 21,190,746 *Excludes HomeLink revenue related to HomeLink modules integrated into automotive mirrors |
Leases
Leases | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Leases | LeasesThe Company has operating leases for corporate offices, warehouses, vehicles, and other equipment, which are included within "Plant and Equipment - Net" section of the Condensed Consolidated Balance Sheets. The leases have remaining lease terms of 1 year to 5 years. The weighted average remaining lease term for operating leases as of June 30, 2019 was 2 years, with a weighted average discount rate of 2.9%. Future minimum lease payments for operating leases as of June 30, 2019 were as follows: Year ending December 31, 2019 (excluding the six months ended June 30, 2019) $ 745,751 2020 576,623 2021 138,888 2022 54,656 2023 11,083 Thereafter 12,725 Total future minimum lease payments 1,539,726 Less imputed interest (26,933) Total $ 1,512,793 Reported as of June 30, 2019 Accrued Liabilities $ 1,151,048 Other Non-Current Liabilities 361,745 Total $ 1,512,793 |
Adoption of New Accounting Pr_2
Adoption of New Accounting Pronouncements (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Adoption of New Accounting Pronouncements | New Accounting Pronouncements Adopted in Fiscal Year 2019 Effective January 1, 2019, the Company adopted Accounting Standards Update ("ASU") 2016-02, Leases , which provides guidance for lease accounting. The new guidance contained in the ASU stipulates that lessees will need to recognize a right-of-use ("ROU") asset and a lease liability for substantially all leases (other than leases that meet the definition of a short-term lease). The liability will be equal to the present value of lease payments. Treatment in the consolidated statements of income will be similar to the historical treatment of operating and capital leases. The adoption of this standard did not have a material impact on the Company's consolidated balance sheet or consolidated income statement. Disclosures are now required to meet the objective of enabling users of financial statements to assess the amount, timing, and uncertainty of cash flows arising from leases. New Accounting Pronouncements Not Yet Adopted In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instrument s. The standard requires a change in the measurement approach for credit losses on financial assets measured on an amortized cost basis from an incurred loss method to an expected loss method, thereby eliminating the requirement that a credit loss be considered probable to impact the valuation of a financial asset measured on an amortized cost basis. The standard requires the measurement of expected credit losses to be based on relevant information about past events, including historical experience, current conditions, and a reasonable and supportable forecast that affects the collectability of the related financial asset. The Company will be required to adopt ASU 2016-13 as of January 1, 2020. Early adoption is permitted. The Company is currently evaluating the impact of ASU 2016-13 on the Company’s consolidated financial statements. |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets | The patents and intangible assets and related change in carrying values are set forth in the tables below: As of June 30, 2019: Other Intangible Assets Gross Accumulated Amortization Net Assumed Useful Life Gentex Patents $ 37,307,011 $ (22,002,673) $ 15,304,338 Various Other Intangible Assets HomeLink ® Trade Names and Trademarks $ 52,000,000 $ — $ 52,000,000 Indefinite HomeLink ® Technology 180,000,000 (86,250,000) 93,750,000 12 years Existing Customer Platforms 43,000,000 (24,725,000) 18,275,000 10 years Exclusive Licensing Agreement 96,000,000 — 96,000,000 Indefinite Total Other Intangible Assets $ 371,000,000 $ (110,975,000) $ 260,025,000 Total Patents & Other Intangible Assets $ 408,307,011 $ (132,977,673) $ 275,329,338 As of December 31, 2018: Other Intangible Assets Gross Accumulated Amortization Net Assumed Useful Life Gentex Patents $ 36,737,434 $ (21,014,168) $ 15,723,266 Various Other Intangible Assets HomeLink ® Trade Names and Trademarks $ 52,000,000 $ — $ 52,000,000 Indefinite HomeLink ® Technology 180,000,000 (78,750,000) 101,250,000 12 years Existing Customer Platforms 43,000,000 (22,575,000) 20,425,000 10 years Exclusive Licensing Agreement 96,000,000 — 96,000,000 Indefinite Total Other Intangible Assets $ 371,000,000 $ (101,325,000) $ 269,675,000 Total Patents & Other Intangible Assets $ 407,737,434 $ (122,339,168) $ 285,398,266 |
Investments (Tables)
Investments (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Investments [Abstract] | |
Investment Securities Stated at Fair Value | Assets or liabilities that have recurring fair value measurements are shown below as of June 30, 2019 and December 31, 2018: As of June 30, 2019: Fair Value Measurements at Reporting Date Using Total as of Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Description June 30, 2019 (Level 1) (Level 2) (Level 3) Cash & Cash Equivalents $ 260,332,892 $ 260,332,892 $ — $ — Short-Term Investments: Certificate of Deposit 150,299,384 150,299,384 — — Government Securities 23,953,999 — 23,953,999 — Corporate Bonds 15,027,102 — 15,027,102 — Other 1,284,580 1,284,580 — — Long-Term Investments: Corporate Bonds 62,317,048 — 62,317,048 — Municipal Bonds 28,131,587 — 28,131,587 — Government Securities 23,012,586 — 23,012,586 — Total $ 564,359,178 $ 411,916,856 $ 152,442,322 $ — As of December 31, 2018: Fair Value Measurements at Reporting Date Using Total as of Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Description December 31, 2018 (Level 1) (Level 2) (Level 3) Cash & Cash Equivalents $ 217,025,278 $ 217,025,278 $ — $ — Short-Term Investments: Certificate of Deposit 150,299,384 150,299,384 — — Government Securities 9,176,227 — 9,176,227 — Corporate Bonds 6,967,700 — 6,967,700 — Other 2,219,688 2,219,688 — — Long-Term Investments: Corporate Bonds 60,369,930 — 60,369,930 — Municipal Bonds 18,025,432 — 18,025,432 — Government Securities 56,483,720 — 56,483,720 — Total $ 520,567,359 $ 369,544,350 $ 151,023,009 $ — |
Schedule of Amortized Cost, Unrealized Gains And Losses, And Market Value of Investment Securities | The amortized cost, unrealized gains and losses, and market value of investment securities are shown as of June 30, 2019 and December 31, 2018: As of June 30, 2019: Unrealized Cost Gains Losses Market Value Short-Term Investments: Certificate of Deposit $ 150,299,384 $ — $ — $ 150,299,384 Government Securities 23,895,390 59,368 (759) 23,953,999 Corporate Bonds 14,968,562 58,540 — 15,027,102 Other 1,284,580 — — 1,284,580 Long-Term Investments: Corporate Bonds 61,354,213 996,062 (33,227) 62,317,048 Municipal Bonds 27,088,064 1,050,416 (6,893) 28,131,587 Government Securities 22,785,296 227,290 — 23,012,586 Total $ 301,675,489 $ 2,391,676 $ (40,879) $ 304,026,286 As of December 31, 2018: Unrealized Cost Gains Losses Market Value Short-Term Investments: Certificate of Deposit $ 150,299,384 $ — $ — $ 150,299,384 Government Securities 9,186,586 — (10,359) 9,176,227 Corporate Bonds 6,981,305 — (13,605) 6,967,700 Other 2,219,688 — — 2,219,688 Long-Term Investments: Corporate Bonds 60,659,498 50,340 (339,908) 60,369,930 Municipal Bonds 17,840,518 184,914 — 18,025,432 Government Securities 56,280,552 205,553 (2,385) 56,483,720 Total $ 303,467,531 $ 440,807 $ (366,257) $ 303,542,081 |
Schedule of Unrealized Loss on Investments | Unrealized losses on investments as of June 30, 2019, are as follows: Aggregate Unrealized Losses Aggregate Fair Value Less than one year $ 40,879 $ 5,823,459 Greater than one year — — Total $ 40,879 $ 5,823,459 Unrealized losses on investments as of December 31, 2018, are as follows: Aggregate Unrealized Losses Aggregate Fair Value Less than one year $ 365,824 $ 68,722,980 Greater than one year 433 3,000,000 Total $ 366,257 $ 71,722,980 |
Investments Classified by Contractual Maturity Date | Fixed income securities as of June 30, 2019 have contractual maturities as follows: Due within one year $ 189,280,485 Due between one and five years 91,584,216 Due over five years 21,877,006 $ 302,741,707 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories consisted of the following at the respective balance sheet dates: June 30, 2019 December 31, 2018 Raw materials $ 146,975,452 $ 139,058,541 Work-in-process 31,237,909 35,386,615 Finished goods 46,881,102 50,836,443 Total Inventory $ 225,094,463 $ 225,281,599 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share Basic And Diluted | The following table sets forth the computation of basic and diluted net income per common share under the two-class method for the three and six months ended June 30, 2019: Three Months Ended June 30, Six Months Ended June 30, 2019 2019 Basic Earnings Per Share Net Income $ 108,958,625 $ 213,239,036 Less: Allocated to participating securities 1,256,243 2,348,020 Net Income available to common shareholders $ 107,702,382 $ 210,891,016 Basic weighted average shares outstanding 255,219,868 256,350,600 Net Income per share - Basic $ 0.42 $ 0.82 Diluted Earnings Per Share Allocation of Net Income used in basic computation $ 107,702,382 $ 210,891,016 Reallocation of undistributed earnings 4,848 8,842 Net Income available to common shareholders - Diluted $ 107,707,230 $ 210,899,858 Number of shares used in basic computation 255,219,868 256,350,600 Additional weighted average dilutive common stock equivalents 1,359,753 1,344,285 Diluted weighted average shares outstanding 256,579,621 257,694,885 Net income per share - Diluted $ 0.42 $ 0.82 Shares related to stock plans not included in diluted average common shares outstanding because their effect would be anti-dilutive 1,013,332 1,011,948 |
Stock-Based Compensation Plans
Stock-Based Compensation Plans (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Weighted-Average Assumptions For The Employee Stock Option Plan | The fair value of each option grant was estimated on the date of grant using the Black-Scholes option pricing model with the following weighted-average assumptions for the indicated periods: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Dividend Yield (1) 2.03 % 1.99 % 2.03 % 2.09 % Expected volatility (2) 23.71 % 23.27 % 23.64 % 26.68 % Risk-free interest rate (3) 1.76 % 2.73 % 2.00 % 2.83 % Expected term of options (years) (4) 4.17 4.19 4.18 4.60 Weighted-avg. grant date fair value $4.23 $4.28 $3.96 $5.03 1. Represents the Company’s estimated cash dividend yield over the expected term of option grant. 2. Amount is determined based on analysis of historical price volatility of the Company’s common stock. The expected volatility is based on the daily percentage change in the price of the stock over a period equal to the expected term of the option grant. 3. Represents the U.S. Treasury yield over the expected term of the option grant. 4. Represents the period of time that options granted are expected to be outstanding. Based on analysis of historical option exercise activity, the Company has determined that all employee groups exhibit similar exercise and post-vesting termination behavior. |
Comprehensive Income (Tables)
Comprehensive Income (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
Schedule of AOCI | The following table presents the net changes in the Company's accumulated other comprehensive income (loss) by component (all amounts shown are net of tax): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Foreign currency translation adjustments: Balance at beginning of period $ (1,375,888) $ 2,271,208 $ (1,674,887) $ 645,030 Other Comprehensive (loss) income before reclassifications (475,686) (2,465,603) (176,687) (839,425) Net current-period change (475,686) (2,465,603) (176,687) (839,425) Balance at end of period (1,851,574) (194,395) (1,851,574) (194,395) Unrealized gains (losses) on available-for-sale debt securities: Balance at beginning of period 1,100,154 (33,160) 74,549 (16,349) Other Comprehensive income (loss) before reclassifications 1,353,661 (238,555) 2,449,241 309,951 Amounts reclassified from accumulated other comprehensive income (103,020) (224) (172,995) (565,541) Net current-period change 1,250,641 (238,779) 2,276,246 (255,590) Balance at end of period 2,350,795 (271,939) 2,350,795 (271,939) Unrealized gains (losses) on derivatives: Balance at beginning of period — (25,059) — (78,026) Other comprehensive income before reclassifications — 17,246 — 60,419 Amounts reclassified from accumulated other comprehensive income — (4,957) — 4,837 Net current-period change — 12,289 — 65,256 Balance at end of period — (12,770) — (12,770) Accumulated other comprehensive income (loss), end of period $ 499,221 $ (479,104) $ 499,221 $ (479,104) |
Reclassifications out of other comprehensive income | The following table presents details of reclassifications out of accumulated other comprehensive income for the three and six months ended June 30, 2019 and 2018. Details about Accumulated Other Comprehensive Income Components Amounts Reclassified from Other Comprehensive Income Affected Line item in the Statement of Consolidated Income Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Unrealized gains on available-for-sale debt securities Realized gain on sale $ 130,405 $ 284 $ 218,981 $ 715,875 Other income (loss), net Provision for income taxes (27,385) (60) (45,986) (150,334) Provision for income taxes $ 103,020 $ 224 $ 172,995 $ 565,541 Net of tax Unrealized gains (losses) on derivatives Realized gain (loss) on interest rate swap $ — $ 6,275 $ — $ (6,123) Other income (loss), net Provision for income taxes — (1,318) — 1,286 Provision for income taxes $ — $ 4,957 $ — $ (4,837) Net of tax Total net reclassifications for the period $ 103,020 $ 5,181 $ 172,995 $ 560,704 Net of tax |
Segment Reporting (Tables)
Segment Reporting (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Automotive and Other Segment Reporting | The Company's automotive segment develops and manufactures digital vision and connected car products and electronics, including: automatic-dimming rearview mirrors with and without electronic features; non-auto dimming rearview mirrors with and without electronic features; and other electronics. The Company also develops and manufactures variably dimming windows for the aerospace industry and fire protection products for the commercial construction industry, which are combined into the "Other" segment shown below. Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Revenue: Automotive Products $ 456,625,064 $ 444,245,425 $ 912,423,707 $ 899,210,799 Other 12,086,290 10,736,015 24,876,644 21,190,746 Total $ 468,711,354 $ 454,981,440 $ 937,300,351 $ 920,401,545 Income from operations: Automotive Products $ 124,295,223 $ 123,758,195 $ 241,247,925 $ 248,720,353 Other 3,609,743 2,924,809 8,253,373 6,477,984 Total $ 127,904,966 $ 126,683,004 $ 249,501,298 $ 255,198,337 |
Revenue (Tables)
Revenue (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table shows the Company’s Automotive revenue and Other Products revenue disaggregated by geographical location for Automotive Products for the three and six month periods ended June 30, 2019 and June 30, 2018: Revenue Three Months Ended June 30, 2019 Three Months Ended June 30, 2018 Six Months Ended Six Months Ended Automotive Products U.S. $ 144,547,946 $ 142,896,639 $ 285,931,010 $ 283,209,626 Germany 73,151,692 85,642,205 151,601,619 177,435,746 Japan 55,722,292 48,647,082 112,055,986 98,480,079 Mexico 42,178,705 22,358,617 86,589,093 45,457,427 Other 141,024,429 144,700,882 276,245,999 294,627,921 Total Automotive Products $ 456,625,064 $ 444,245,425 $ 912,423,707 $ 899,210,799 Other Products (U.S.) 12,086,290 10,736,015 24,876,644 21,190,746 Total Revenue $ 468,711,354 $ 454,981,440 $ 937,300,351 $ 920,401,545 Revenue by geographic area may fluctuate based on many factors, including exposure to local economic, political and labor conditions; unexpected changes in laws, regulations, trade or monetary or fiscal policy, including interest rates, foreign currency exchange rates and changes in the rate of inflation in the U.S. and other foreign countries; and tariffs, quotas, customs and other import or export restrictions and other trade barriers. The following table disaggregates the Company’s Automotive revenue and Other revenue by major source for the three and six month periods ended June 30, 2019 and June 30, 2018: Revenue Three Months Ended June 30, 2019 Three Months Ended June 30, 2018 Six Months Ended Six Months Ended Automotive Segment Automotive Mirrors & Electronics $ 413,429,267 $ 396,547,385 $ 822,400,934 $ 800,789,013 HomeLink Modules* 43,195,797 47,698,040 90,022,773 98,421,786 Total Automotive Products $ 456,625,064 $ 444,245,425 $ 912,423,707 $ 899,210,799 Other Segment Fire Protection Products 6,359,266 5,813,210 12,211,499 11,092,868 Windows Products 5,727,024 4,922,805 12,665,145 10,097,878 Total Other $ 12,086,290 $ 10,736,015 $ 24,876,644 $ 21,190,746 *Excludes HomeLink revenue related to HomeLink modules integrated into automotive mirrors |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Future minimum lease payments | Future minimum lease payments for operating leases as of June 30, 2019 were as follows: Year ending December 31, 2019 (excluding the six months ended June 30, 2019) $ 745,751 2020 576,623 2021 138,888 2022 54,656 2023 11,083 Thereafter 12,725 Total future minimum lease payments 1,539,726 Less imputed interest (26,933) Total $ 1,512,793 |
Lease liabilities | Reported as of June 30, 2019 Accrued Liabilities $ 1,151,048 Other Non-Current Liabilities 361,745 Total $ 1,512,793 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets (Narrative) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | [1] | Sep. 27, 2013 | |
Finite-Lived Intangible Assets [Line Items] | |||||||
Goodwill | $ 307,365,845 | $ 307,365,845 | $ 307,365,845 | ||||
Amortization expense | 5,600,000 | $ 5,600,000 | 11,200,000 | $ 11,300,000 | |||
Amortization expense, 2019 | 22,000,000 | 22,000,000 | |||||
Amortization expense, 2020 | 22,000,000 | 22,000,000 | |||||
Amortization expense, 2021 | 22,000,000 | 22,000,000 | |||||
Amortization expense, 2022 | 21,000,000 | 21,000,000 | |||||
Amortization expense, 2023 | $ 19,000,000 | $ 19,000,000 | |||||
HomeLink® | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Goodwill | $ 307,400,000 | ||||||
[1] | The condensed consolidated balance sheet at December 31, 2018 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets (Schedule of Intangible Assets) (Details) - USD ($) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2019 | Dec. 31, 2018 | ||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets, accumulated amortization | $ (110,975,000) | $ (101,325,000) | |
Intangible assets, gross | 371,000,000 | 371,000,000 | |
Intangible assets, net | 260,025,000 | 269,675,000 | [1] |
Gentex Patents | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets, gross | 37,307,011 | 36,737,434 | |
Finite-lived intangible assets, accumulated amortization | (22,002,673) | (21,014,168) | |
Finite-lived intangible assets, net | 15,304,338 | 15,723,266 | |
Homelink Technology | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets, gross | 180,000,000 | 180,000,000 | |
Finite-lived intangible assets, accumulated amortization | (86,250,000) | (78,750,000) | |
Finite-lived intangible assets, net | $ 93,750,000 | $ 101,250,000 | |
Finite-lived intangible asset, useful life | 12 years | 12 years | |
Existing Customer Platforms | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets, gross | $ 43,000,000 | $ 43,000,000 | |
Finite-lived intangible assets, accumulated amortization | (24,725,000) | (22,575,000) | |
Finite-lived intangible assets, net | $ 18,275,000 | $ 20,425,000 | |
Finite-lived intangible asset, useful life | 10 years | 10 years | |
Patents and Other Intangible Assets | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets, accumulated amortization | $ (132,977,673) | $ (122,339,168) | |
Intangible assets, gross | 408,307,011 | 407,737,434 | |
Intangible assets, net | 275,329,338 | 285,398,266 | |
HomeLink Trade Names and Trademarks | |||
Finite-Lived Intangible Assets [Line Items] | |||
Indefinite-lived intangible assets | 52,000,000 | 52,000,000 | |
Exclusive Licensing Agreement | |||
Finite-Lived Intangible Assets [Line Items] | |||
Indefinite-lived intangible assets | $ 96,000,000 | $ 96,000,000 | |
[1] | The condensed consolidated balance sheet at December 31, 2018 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. |
Investments (Narrative) (Detail
Investments (Narrative) (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | ||
Technology investments | $ 7,600,000 | $ 3,850,000 |
Equity investment losses were considered to be other than temporary | $ 0 | $ 0 |
Investments (Schedule of Assets
Investments (Schedule of Assets or Liabilities, Recurring Fair Value Measurements) (Details) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash & Cash Equivalents | $ 260,332,892 | $ 217,025,278 |
Market Value | 304,026,286 | 303,542,081 |
Investments and Cash | 564,359,178 | 520,567,359 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash & Cash Equivalents | 260,332,892 | 217,025,278 |
Investments and Cash | 411,916,856 | 369,544,350 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash & Cash Equivalents | 0 | 0 |
Investments and Cash | 152,442,322 | 151,023,009 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash & Cash Equivalents | 0 | 0 |
Investments and Cash | 0 | 0 |
Short-Term Investments | Certificates of Deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Market Value | 150,299,384 | 150,299,384 |
Short-Term Investments | Certificates of Deposit | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Market Value | 150,299,384 | 150,299,384 |
Short-Term Investments | Certificates of Deposit | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Market Value | 0 | 0 |
Short-Term Investments | Certificates of Deposit | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Market Value | 0 | 0 |
Short-Term Investments | Government Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Market Value | 23,953,999 | 9,176,227 |
Short-Term Investments | Government Securities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Market Value | 0 | 0 |
Short-Term Investments | Government Securities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Market Value | 23,953,999 | 9,176,227 |
Short-Term Investments | Government Securities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Market Value | 0 | 0 |
Short-Term Investments | Corporate Bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Market Value | 15,027,102 | 6,967,700 |
Short-Term Investments | Corporate Bonds | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Market Value | 0 | 0 |
Short-Term Investments | Corporate Bonds | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Market Value | 15,027,102 | 6,967,700 |
Short-Term Investments | Corporate Bonds | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Market Value | 0 | 0 |
Short-Term Investments | Other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Market Value | 1,284,580 | 2,219,688 |
Short-Term Investments | Other | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Market Value | 1,284,580 | 2,219,688 |
Short-Term Investments | Other | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Market Value | 0 | 0 |
Short-Term Investments | Other | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Market Value | 0 | 0 |
Long-Term Investments | Government Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Market Value | 23,012,586 | 56,483,720 |
Long-Term Investments | Government Securities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Market Value | 0 | 0 |
Long-Term Investments | Government Securities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Market Value | 23,012,586 | 56,483,720 |
Long-Term Investments | Government Securities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Market Value | 0 | 0 |
Long-Term Investments | Corporate Bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Market Value | 62,317,048 | 60,369,930 |
Long-Term Investments | Corporate Bonds | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Market Value | 0 | 0 |
Long-Term Investments | Corporate Bonds | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Market Value | 62,317,048 | 60,369,930 |
Long-Term Investments | Corporate Bonds | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Market Value | 0 | 0 |
Long-Term Investments | Municipal Bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Market Value | 28,131,587 | 18,025,432 |
Long-Term Investments | Municipal Bonds | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Market Value | 0 | 0 |
Long-Term Investments | Municipal Bonds | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Market Value | 28,131,587 | 18,025,432 |
Long-Term Investments | Municipal Bonds | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Market Value | $ 0 | $ 0 |
Investments (Schedule of Amorti
Investments (Schedule of Amortized Cost, Unrealized Gains and Losses, and Market Value of Investment Securities) (Details) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Debt Securities, Available-for-sale [Line Items] | ||
Cost | $ 301,675,489 | $ 303,467,531 |
Unrealized Gains | 2,391,676 | 440,807 |
Unrealized Losses | (40,879) | (366,257) |
Market Value | 304,026,286 | 303,542,081 |
Short-Term Investments | Certificates of Deposit | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost | 150,299,384 | 150,299,384 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Market Value | 150,299,384 | 150,299,384 |
Short-Term Investments | Government Securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost | 23,895,390 | 9,186,586 |
Unrealized Gains | 59,368 | 0 |
Unrealized Losses | (759) | (10,359) |
Market Value | 23,953,999 | 9,176,227 |
Short-Term Investments | Corporate Bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost | 14,968,562 | 6,981,305 |
Unrealized Gains | 58,540 | 0 |
Unrealized Losses | 0 | (13,605) |
Market Value | 15,027,102 | 6,967,700 |
Short-Term Investments | Other | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost | 1,284,580 | 2,219,688 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Market Value | 1,284,580 | 2,219,688 |
Long-Term Investments | Government Securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost | 22,785,296 | 56,280,552 |
Unrealized Gains | 227,290 | 205,553 |
Unrealized Losses | 0 | (2,385) |
Market Value | 23,012,586 | 56,483,720 |
Long-Term Investments | Corporate Bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost | 61,354,213 | 60,659,498 |
Unrealized Gains | 996,062 | 50,340 |
Unrealized Losses | (33,227) | (339,908) |
Market Value | 62,317,048 | 60,369,930 |
Long-Term Investments | Municipal Bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost | 27,088,064 | 17,840,518 |
Unrealized Gains | 1,050,416 | 184,914 |
Unrealized Losses | (6,893) | 0 |
Market Value | $ 28,131,587 | $ 18,025,432 |
Investments (Schedule of Unreal
Investments (Schedule of Unrealized Loss on Investments) (Details) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Investments [Abstract] | ||
Aggregate Unrealized Losses, Less than one year | $ 40,879 | $ 365,824 |
Aggregate Fair Value, Less than one year | 5,823,459 | 68,722,980 |
Aggregate Unrealized Losses, Greater than one year | 0 | 433 |
Aggregate Fair Value, Greater than one year | 0 | 3,000,000 |
Aggregate Unrealized Losses, Total | 40,879 | 366,257 |
Aggregate Fair Value, Total | $ 5,823,459 | $ 71,722,980 |
Investments (Investments Classi
Investments (Investments Classified by Contractual Maturity Date) (Details) - Fixed Income Securities | Jun. 30, 2019USD ($) |
Debt Securities, Available-for-sale [Line Items] | |
Due within one year | $ 189,280,485 |
Due between one and five years | 91,584,216 |
Due over five years | 21,877,006 |
Total | $ 302,741,707 |
Inventories (Schedule of Invent
Inventories (Schedule of Inventories) (Details) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 | |
Inventory Disclosure [Abstract] | |||
Raw materials | $ 146,975,452 | $ 139,058,541 | |
Work-in-process | 31,237,909 | 35,386,615 | |
Finished goods | 46,881,102 | 50,836,443 | |
Total Inventory | $ 225,094,463 | $ 225,281,599 | [1] |
[1] | The condensed consolidated balance sheet at December 31, 2018 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. |
Earnings Per Share (Schedule of
Earnings Per Share (Schedule of Earnings Per Share, Basic and Diluted) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | ||
Earnings Per Share [Abstract] | |||||||
Net income (loss) | $ 108,958,625 | $ 104,280,411 | $ 109,023,982 | $ 111,248,743 | $ 213,239,036 | $ 220,272,725 | |
Less: Allocated to participating securities | 1,256,243 | 2,348,020 | |||||
Net Income available to common shareholders | $ 107,702,382 | $ 210,891,016 | |||||
Basic weighted average shares outstanding (in shares) | 255,219,868 | 256,350,600 | |||||
Net Income per share - Basic (in dollars per share) | [1] | $ 0.42 | $ 0.40 | $ 0.82 | $ 0.81 | ||
Reallocation of undistributed earnings | $ 4,848 | $ 8,842 | |||||
Net Income available to common shareholders - Diluted | $ 107,707,230 | $ 210,899,858 | |||||
Additional weighted average dilutive common stock equivalents (in shares) | 1,359,753 | 1,344,285 | |||||
Diluted weighted average shares outstanding (in shares) | 256,579,621 | 257,694,885 | |||||
Diluted (in dollars per share) | [1] | $ 0.42 | $ 0.40 | $ 0.82 | $ 0.80 | ||
Shares related to stock plans not included in diluted average common shares outstanding because their effect would be anti-dilutive (in shares) | 1,013,332 | 1,011,948 | |||||
[1] | (1) Earnings Per Share has been adjusted to exclude the portion of net income allocated to participating securities as a result of share-based payment awards. |
Stock-Based Compensation Plan_2
Stock-Based Compensation Plans (Narrative) (Details) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2019USD ($)planshares | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($)planshares | Jun. 30, 2018USD ($) | Dec. 31, 2018USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Compensation expense for share-based payments | $ 5,200,045 | $ 4,465,634 | $ 9,986,839 | $ 8,366,949 | |
Compensation cost capitalized as part of inventory | 319,080 | $ 242,673 | |||
Employee Stock Option Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unrecognized compensation cost | $ 7,397,810 | $ 7,397,810 | |||
Employee Stock Option Plan | Minimum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Option vesting period | 1 year | ||||
Option expiration period | 5 years | ||||
Employee Stock Option Plan | Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Option vesting period | 5 years | ||||
Option expiration period | 10 years | ||||
Employee Stock Purchase Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares approved (in shares) | shares | 2,000,000 | 2,000,000 | |||
ESPP discount rate | 85.00% | ||||
ESPP discount rate recognized as compensation expense | 15.00% | ||||
Shares granted (in shares) | shares | 1,063,052 | 1,063,052 | |||
Restricted Stock Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unrecognized compensation cost | $ 43,851,893 | $ 43,851,893 | |||
Restricted period, maximum, in years | 10 years | ||||
Amortization expense | $ 3,274,411 | 2,189,938 | $ 6,046,175 | 3,832,998 | |
Omnibus Incentive Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares authorized (in shares) | shares | 45,000,000 | 45,000,000 | |||
Restricted period, maximum, in years | 3 years | ||||
Equity Incentive Plans | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of plans | plan | 2 | 2 | |||
Performance Shares | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unrecognized compensation cost | $ 2,726,924 | $ 2,726,924 | |||
Amortization expense | $ 257,756 | $ 0 | $ 0 |
Stock-Based Compensation Plan_3
Stock-Based Compensation Plans (Weighted-Average Assumptions for the ESOP) (Details) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Share-based Payment Arrangement [Abstract] | ||||
Dividend yield | 2.03% | 1.99% | 2.03% | 2.09% |
Expected volatility | 23.71% | 23.27% | 23.64% | 26.68% |
Risk-free interest rate | 1.76% | 2.73% | 2.00% | 2.83% |
Expected term of options | 4 years 2 months 1 day | 4 years 2 months 8 days | 4 years 2 months 4 days | 4 years 7 months 6 days |
Weighted-avg. grant-date fair value (in dollars per share) | $ 4.23 | $ 4.28 | $ 3.96 | $ 5.03 |
Comprehensive Income (AOCI Roll
Comprehensive Income (AOCI Rollforward) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Beginning balance | $ 1,857,074,747 | $ 1,969,977,496 | $ 1,861,751,660 | [1] | $ 2,049,518,261 |
Comprehensive Income | 109,733,580 | 106,331,889 | 215,338,595 | 219,242,966 | |
Ending balance | 1,904,334,235 | 1,921,499,312 | 1,904,334,235 | 1,921,499,312 | |
Accumulated Other Comprehensive Income (Loss) | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Beginning balance | (275,734) | 2,212,989 | (1,600,338) | 7,193,383 | |
Ending balance | 499,221 | (479,104) | 499,221 | (479,104) | |
Foreign currency translation adjustments | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Beginning balance | (1,375,888) | 2,271,208 | (1,674,887) | 645,030 | |
Other Comprehensive income (loss) before reclassifications | (475,686) | (2,465,603) | (176,687) | (839,425) | |
Comprehensive Income | (475,686) | (2,465,603) | (176,687) | (839,425) | |
Ending balance | (1,851,574) | (194,395) | (1,851,574) | (194,395) | |
Unrealized gains (losses) on available-for-sale debt securities | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Beginning balance | 1,100,154 | (33,160) | 74,549 | (16,349) | |
Other Comprehensive income (loss) before reclassifications | 1,353,661 | (238,555) | 2,449,241 | 309,951 | |
Amounts reclassified from accumulated other comprehensive income | (103,020) | (224) | (172,995) | (565,541) | |
Comprehensive Income | 1,250,641 | (238,779) | 2,276,246 | (255,590) | |
Ending balance | 2,350,795 | (271,939) | 2,350,795 | (271,939) | |
Unrealized gains (losses) on derivatives | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Beginning balance | 0 | (25,059) | 0 | (78,026) | |
Other Comprehensive income (loss) before reclassifications | 0 | 17,246 | 0 | 60,419 | |
Amounts reclassified from accumulated other comprehensive income | 0 | (4,957) | 0 | 4,837 | |
Comprehensive Income | 0 | 12,289 | 0 | 65,256 | |
Ending balance | $ 0 | $ (12,770) | $ 0 | $ (12,770) | |
[1] | The condensed consolidated balance sheet at December 31, 2018 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. |
Comprehensive Income (Reclassif
Comprehensive Income (Reclassification Out of Accumulated Other Comprehensive Income) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Reclassification Out of Accumulated Other Comprehensive Income [Line Items] | ||||
Provision for income taxes | $ (21,323,919) | $ (19,948,796) | $ (41,952,050) | $ (40,459,984) |
Amounts Reclassified from Other Comprehensive Income | ||||
Reclassification Out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total net reclassifications for the period | 103,020 | 5,181 | 172,995 | 560,704 |
Amounts Reclassified from Other Comprehensive Income | Unrealized gains (losses) on available-for-sale debt securities | ||||
Reclassification Out of Accumulated Other Comprehensive Income [Line Items] | ||||
Realized gain (loss) on sale of securities and interest rate swap | 130,405 | 284 | 218,981 | 715,875 |
Provision for income taxes | (27,385) | (60) | (45,986) | (150,334) |
Total net reclassifications for the period | 103,020 | 224 | 172,995 | 565,541 |
Amounts Reclassified from Other Comprehensive Income | Unrealized gains (losses) on derivatives | ||||
Reclassification Out of Accumulated Other Comprehensive Income [Line Items] | ||||
Realized gain (loss) on sale of securities and interest rate swap | 0 | 6,275 | 0 | (6,123) |
Provision for income taxes | 0 | (1,318) | 0 | 1,286 |
Total net reclassifications for the period | $ 0 | $ 4,957 | $ 0 | $ (4,837) |
Debt and Financing Arrangemen_2
Debt and Financing Arrangements (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2018 | Jun. 30, 2019 | Oct. 15, 2018 | |
Debt Instrument [Line Items] | ||||
Interest expense | $ 300,000 | $ 800,000 | ||
Revolving Facility | ||||
Debt Instrument [Line Items] | ||||
Principal amount | $ 150,000,000 | |||
Long-term debt | $ 0 | |||
Credit Agreement | ||||
Debt Instrument [Line Items] | ||||
Additional borrowings available | 100,000,000 | |||
Swing Loans | ||||
Debt Instrument [Line Items] | ||||
Additional borrowings available | 20,000,000 | |||
Letter of Credit | ||||
Debt Instrument [Line Items] | ||||
Additional borrowings available | $ 20,000,000 |
Equity (Details)
Equity (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Equity [Abstract] | ||||||
Stock repurchased (in shares) | 7.8 | |||||
Common stock issued under stock compensation plan (in shares) | 3.3 | |||||
Net decrease in period (in shares) | 4.5 | |||||
Increase in quarterly dividend rate (in dollars per share) | $ 0.005 | |||||
Dividends declared (in dollars per share) | $ 0.115 | $ 0.115 | $ 0.110 | $ 0.110 | $ 0.230 | $ 0.220 |
Dividends declared | $ 29.3 |
Segment Reporting (Schedule of
Segment Reporting (Schedule of Automotive and Other Segment Reporting) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Segment Reporting Information [Line Items] | ||||
Revenue | $ 468,711,354 | $ 454,981,440 | $ 937,300,351 | $ 920,401,545 |
Income from operations | 127,904,966 | 126,683,004 | 249,501,298 | 255,198,337 |
Automotive Products | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 456,625,064 | 444,245,425 | 912,423,707 | 899,210,799 |
Income from operations | 124,295,223 | 123,758,195 | 241,247,925 | 248,720,353 |
Other | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 12,086,290 | 10,736,015 | 24,876,644 | 21,190,746 |
Income from operations | $ 3,609,743 | $ 2,924,809 | $ 8,253,373 | $ 6,477,984 |
Income Taxes (Details)
Income Taxes (Details) | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | ||
Effective income tax rate | 16.40% | 15.50% |
Revenue (Details)
Revenue (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 468,711,354 | $ 454,981,440 | $ 937,300,351 | $ 920,401,545 |
Automotive Segment | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 456,625,064 | 444,245,425 | 912,423,707 | 899,210,799 |
Other Segment | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 12,086,290 | 10,736,015 | 24,876,644 | 21,190,746 |
Automotive Products | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 456,625,064 | 444,245,425 | 912,423,707 | 899,210,799 |
Automotive Mirrors & Electronics | Automotive Segment | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 413,429,267 | 396,547,385 | 822,400,934 | 800,789,013 |
HomeLink Modules | Automotive Segment | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 43,195,797 | 47,698,040 | 90,022,773 | 98,421,786 |
Fire Protection Products | Other Segment | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 6,359,266 | 5,813,210 | 12,211,499 | 11,092,868 |
Windows Products | Other Segment | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 5,727,024 | 4,922,805 | 12,665,145 | 10,097,878 |
U.S. | Automotive Products | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 144,547,946 | 142,896,639 | 285,931,010 | 283,209,626 |
U.S. | Other Products | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 12,086,290 | 10,736,015 | 24,876,644 | 21,190,746 |
Germany | Automotive Products | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 73,151,692 | 85,642,205 | 151,601,619 | 177,435,746 |
Japan | Automotive Products | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 55,722,292 | 48,647,082 | 112,055,986 | 98,480,079 |
Mexico | Automotive Products | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 42,178,705 | 22,358,617 | 86,589,093 | 45,457,427 |
Other | Automotive Products | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 141,024,429 | $ 144,700,882 | $ 276,245,999 | $ 294,627,921 |
Leases (Details)
Leases (Details) | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Lessee, Lease, Description [Line Items] | |
Weighted average remaining lease term | 2 years |
Weighted average discount rate | 2.90% |
2019 (excluding the six months ended June 30, 2019) | $ 745,751 |
2020 | 576,623 |
2021 | 138,888 |
2022 | 54,656 |
2023 | 11,083 |
Thereafter | 12,725 |
Total future minimum lease payments | 1,539,726 |
Less imputed interest | (26,933) |
Total | 1,512,793 |
Accrued Liabilities | 1,151,048 |
Other Non-Current Liabilities | $ 361,745 |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Remaining lease terms | 1 year |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Remaining lease terms | 5 years |