Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 14, 2020 | Jun. 28, 2019 | |
Cover page. | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Transition Report | false | ||
Entity File Number | 1-7665 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 06-0865505 | ||
Entity Address, Address Line One | One Colonial Road | ||
Entity Address, City or Town | Manchester | ||
Entity Address, State or Province | CT | ||
Entity Address, Postal Zip Code | 06042 | ||
City Area Code | 860 | ||
Local Phone Number | 646-1233 | ||
Title of 12(b) Security | Common Stock, $.01 par value | ||
Trading Symbol | LDL | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 340,893,927 | ||
Entity Common Stock, Shares Outstanding | 17,621,746 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | LYDALL INC /DE/ | ||
Entity Central Index Key | 0000060977 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Statement [Abstract] | |||
Net sales | $ 837,398 | $ 785,897 | $ 698,437 |
Cost of sales | 685,608 | 633,252 | 535,078 |
Gross profit | 151,790 | 152,645 | 163,359 |
Selling, product development and administrative expenses | 126,409 | 103,457 | 97,159 |
Impairment of goodwill and other long-lived assets | 64,206 | 0 | 0 |
Operating (loss) income | (38,825) | 49,188 | 66,200 |
Employee benefit plans settlement expenses | 25,247 | 0 | 0 |
Interest expense | 14,262 | 6,212 | 2,720 |
Other (income) expense, net | (1,257) | (289) | 2,161 |
(Loss) income before income taxes | (77,077) | 43,265 | 61,319 |
Income tax (benefit) expense | (6,416) | 8,453 | 11,974 |
(Income) loss from equity method investment | (148) | (132) | 28 |
Net (loss) income | $ (70,513) | $ 34,944 | $ 49,317 |
(Loss) earnings per common share: | |||
Basic (USD per share) | $ (4.08) | $ 2.03 | $ 2.89 |
Diluted (USD per share) | $ (4.08) | $ 2.02 | $ 2.85 |
Weighted average common shares outstanding (shares) | 17,271 | 17,204 | 17,045 |
Weighted average common shares and equivalents outstanding (shares) | 17,271 | 17,330 | 17,317 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Net (loss) income | $ (70,513) | $ 34,944 | $ 49,317 |
Other comprehensive income (loss): | |||
Pension liability adjustment, net of income taxes of $11,605, $1,285, and $409, respectively | 19,173 | (4,204) | 2,016 |
Foreign currency translation adjustments | 436 | (16,237) | 25,664 |
Unrealized (loss) gain on hedging activities, net of tax | (2,903) | (2,096) | 122 |
Total other comprehensive income (loss), net of tax | 16,706 | (22,537) | 27,802 |
Comprehensive (loss) income | $ (53,807) | $ 12,407 | $ 77,119 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Income taxes related to pension plans | $ 11,605 | $ 1,285 | $ 409 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 51,331 | $ 49,237 |
Accounts receivable, (net of allowance for doubtful receivables of $1,842 and $1,440, respectively) | 107,786 | 144,938 |
Contract assets | 28,245 | 23,040 |
Inventories | 80,544 | 84,465 |
Taxes receivable | 3,427 | 2,912 |
Prepaid expenses and other current assets | 12,264 | 12,486 |
Total current assets | 283,597 | 317,078 |
Property, plant and equipment, net | 221,642 | 213,369 |
Operating lease right-of-use assets | 23,116 | 0 |
Goodwill | 133,912 | 196,963 |
Other intangible assets, net | 115,577 | 136,604 |
Deferred tax assets | 1,933 | 2,055 |
Other assets, net | 6,160 | 6,617 |
Total assets | 785,937 | 872,686 |
Current liabilities: | ||
Current portion of long-term debt | 9,928 | 10,172 |
Accounts payable | 73,426 | 73,265 |
Accrued payroll and other compensation | 17,198 | 16,621 |
Deferred revenue | 2,643 | 6,990 |
Other accrued liabilities | 26,663 | 14,298 |
Total current liabilities | 129,858 | 121,346 |
Long-term debt | 262,713 | 314,641 |
Long-term lease liability | 18,424 | 0 |
Deferred tax liabilities | 34,561 | 39,265 |
Benefit plan liabilities | 18,957 | 22,795 |
Other long-term liabilities | 3,004 | 5,364 |
Commitments and Contingencies (Note 17) | ||
Stockholders’ equity: | ||
Preferred stock (par value $0.01 per share; authorized 500 shares; none issued or outstanding) (Note 11) | 0 | 0 |
Common stock (par value $0.01 per share; authorized 30,000 shares; issued 25,328 and 25,254 shares, respectively) (Note 11) | 253 | 253 |
Capital in excess of par value | 94,140 | 90,851 |
Retained earnings | 340,629 | 411,325 |
Accumulated other comprehensive loss | (25,979) | (42,685) |
Treasury stock, 7,705 and 7,698 shares of common stock, respectively, at cost | (90,623) | (90,469) |
Total stockholders’ equity | 318,420 | 369,275 |
Total liabilities and stockholders’ equity | $ 785,937 | $ 872,686 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful receivables | $ 1,842 | $ 1,440 |
Preferred stock, par value (USD per share) | $ 0.01 | $ 0.01 |
Preferred stock authorized (shares) | 500,000 | 500,000 |
Preferred stock issued (shares) | 0 | 0 |
Preferred stock, outstanding (shares) | 0 | 0 |
Common stock, par value (USD per share) | $ 0.01 | $ 0.01 |
Common stock, authorized (shares) | 30,000,000 | 30,000,000 |
Common stock, issued (shares) | 25,328,000 | 25,254,000 |
Treasury stock, shares (shares) | 7,705,000 | 7,698,000 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities: | |||
Net (loss) income | $ (70,513) | $ 34,944 | $ 49,317 |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | |||
Gain on divestiture | (1,459) | 0 | 0 |
Depreciation and amortization | 49,000 | 33,162 | 26,130 |
Impairment of goodwill and long-lived assets | 64,206 | 0 | 772 |
Deferred income taxes | (14,585) | 636 | (2,933) |
Employee benefit plans settlement expenses | 25,247 | 0 | 0 |
Stock-based compensation | 2,829 | 2,081 | 4,269 |
Inventory step-up amortization | 0 | 1,975 | 1,108 |
(Gain) loss on disposition of property, plant and equipment | (17) | 230 | 0 |
(Income) loss from equity method investment | (148) | (132) | 28 |
Changes in operating assets and liabilities: | |||
Accounts receivable | 37,470 | (7,127) | (8,046) |
Contract assets | (5,514) | (3,828) | 0 |
Inventories | 2,619 | (6,001) | (11,116) |
Taxes receivable | (876) | 3,151 | (1,216) |
Prepaid expenses and other assets | 2,031 | (542) | (784) |
Accounts payable | (393) | (5,055) | 14,315 |
Accrued payroll and other compensation | 4,597 | (2,352) | 1,103 |
Deferred revenue | (4,267) | 3,801 | 934 |
Accrued taxes | 2,500 | 535 | (4,708) |
Benefit plan liabilities | (4,288) | (7,658) | (5,245) |
Other, net | (1,577) | (3,081) | (992) |
Net cash provided by operating activities | 86,862 | 44,739 | 62,936 |
Cash flows from investing activities: | |||
Capital expenditures | (35,850) | (31,291) | (27,006) |
Proceeds from the sale of property, plant and equipment | 298 | 298 | 0 |
Proceeds from divestiture | 2,298 | 0 | 0 |
Business acquisitions, net of cash acquired | 869 | (269,972) | (323) |
Net cash used for investing activities | (32,385) | (300,965) | (27,329) |
Cash flows from financing activities: | |||
Proceeds from borrowings | 0 | 338,000 | 0 |
Debt repayments | (52,233) | (89,862) | (51,762) |
Debt issuance cost repayments | 0 | (538) | 0 |
Common stock issued | 448 | 850 | 1,323 |
Common stock repurchased | (142) | (974) | (2,770) |
Net cash (used for) provided by financing activities | (51,927) | 247,476 | (53,209) |
Effect of exchange rate changes on cash | (456) | (1,888) | 5,543 |
Increase (decrease) in cash and cash equivalents | 2,094 | (10,638) | (12,059) |
Cash and cash equivalents at beginning of period | 49,237 | 59,875 | 71,934 |
Cash and cash equivalents at end of period | 51,331 | 49,237 | 59,875 |
Cash paid during the year for: | |||
Interest | 14,064 | 5,960 | 2,747 |
Income taxes, net | 5,863 | 4,606 | 16,158 |
Non-cash capital expenditures | $ 5,500 | $ 4,900 | $ 6,500 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Common stock | Capital in Excess of Par Value | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock |
Beginning balance (shares) at Dec. 31, 2016 | 24,858 | |||||
Beginning balance at Dec. 31, 2016 | $ 273,456 | $ 249 | $ 82,387 | $ 325,466 | $ (47,950) | $ (86,696) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net (loss) income | 49,317 | 49,317 | ||||
Other comprehensive income (loss), net of tax | 27,802 | 27,802 | ||||
Stock repurchased | (2,799) | (2,799) | ||||
Stock issued under employee plans (shares) | 152 | |||||
Stock issued under employee plans | 1,351 | $ 1 | 1,350 | |||
Stock-based compensation expense | 3,868 | 3,868 | ||||
Stock issued to directors (shares) | 8 | |||||
Stock issued to directors | 401 | 401 | ||||
Ending balance (shares) at Dec. 31, 2017 | 25,018 | |||||
Ending balance at Dec. 31, 2017 | 353,396 | $ 250 | 88,006 | 374,783 | (20,148) | (89,495) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net (loss) income | 34,944 | 34,944 | ||||
Other comprehensive income (loss), net of tax | (22,537) | (22,537) | ||||
Stock repurchased | (974) | (974) | ||||
Stock issued under employee plans (shares) | 225 | |||||
Stock issued under employee plans | 855 | $ 3 | 852 | |||
Stock-based compensation expense | 1,619 | 1,619 | ||||
Stock issued to directors (shares) | 11 | |||||
Stock issued to directors | $ 374 | 374 | ||||
Ending balance (shares) at Dec. 31, 2018 | 25,254 | 25,254 | ||||
Ending balance at Dec. 31, 2018 | $ 369,275 | $ 253 | 90,851 | 411,325 | (42,685) | (90,469) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net (loss) income | (70,513) | (70,513) | ||||
Other comprehensive income (loss), net of tax | 16,706 | 16,706 | ||||
Stock repurchased | (154) | (154) | ||||
Stock issued under employee plans (shares) | 46 | |||||
Stock issued under employee plans | 448 | 448 | ||||
Stock-based compensation expense | 2,229 | 2,229 | ||||
Stock issued to directors (shares) | 28 | |||||
Stock issued to directors | $ 612 | 612 | ||||
Ending balance (shares) at Dec. 31, 2019 | 25,328 | 25,328 | ||||
Ending balance at Dec. 31, 2019 | $ 318,420 | $ 253 | $ 94,140 | $ 340,629 | $ (25,979) | $ (90,623) |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies Business — Lydall, Inc. and its subsidiaries (the “Company” or “Lydall”) design and manufacture specialty engineered nonwoven filtration media, industrial thermal insulating solutions, and thermal and acoustical barriers for filtration/separation and heat abatement and sound dampening applications. On August 31, 2018, the Company acquired an engineered sealing materials business operating under Interface Performance Materials ("Interface"), based in Lancaster, Pennsylvania. A globally-recognized leader in the delivery of engineered sealing solutions, the Interface operations manufacture wet-laid gasket and specialty materials primarily serving OEM and Tier I manufacturers in the agriculture, construction, earthmoving, industrial, and automotive segments. The acquired business is included in the Company's Performance Materials operating segment. Principles of consolidation — The Consolidated Financial Statements include the accounts of Lydall, Inc. and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated. Estimates and assumptions — The preparation of the Company’s Consolidated Financial Statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the financial statement dates and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. Risks and uncertainties — Worldwide economic cycles and political changes affect the markets that the Company’s businesses serve and affect demand for Lydall’s products and impact profitability. Among other factors, disruptions in the global credit and financial markets, including diminished liquidity and credit availability, changes in international trade agreements, swings in consumer confidence and spending, unstable economic growth and fluctuations in unemployment rates has caused economic instability and can have a negative impact on the Company’s results of operations, financial condition and liquidity. Cash and cash equivalents — Cash and cash equivalents include cash on hand and highly liquid investments with original maturities of three months or less at the date of purchase. Concentrations of credit risk — Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents and trade accounts receivable. The Company places its cash and cash equivalents in high-quality financial institutions. Concentrations of credit risk with respect to trade accounts receivable are limited by the large number of customers comprising the Company’s customer base and their dispersion across many different industries and geographies. At December 31, 2019 and December 31, 2018 , no customer accounted for more than 10.0% of total accounts receivable. Foreign and export sales were 53.1% of the Company’s net sales in 2019 , 53.5% in 2018 , and 54.2% in 2017 . Export sales primarily to Canada, Mexico, Asia and Europe were $86.3 million , $56.8 million , and $55.9 million in 2019 , 2018 , and 2017 , respectively. The Company performs ongoing credit evaluations of its customers’ financial condition and generally does not require collateral. Sales to the automotive market, included in the Thermal Acoustical Solutions segment and to a lesser extent the Performance Materials segment, were 42.9% of the Company’s net sales in 2019 , 46.3% in 2018 , and 48.3% in 2017 . Sales to Ford were 11.8% , 14.8% , and 17.3% of Lydall’s 2019 , 2018 , and 2017 net sales, respectively. No other customers accounted for more than 10% of total net sales in 2019 , 2018 , and 2017 . Transfers of Financial Assets — The Company accounts for transfers of financial assets as sold when it has surrendered control over the related assets. Whether control has been relinquished requires, among other things, an evaluation of relevant legal considerations and an assessment of the nature and extent of the Company's continuing involvement with the assets transferred. Gains or losses and any expenditures stemming from the transfers are included in "Other (Income) Expense, net" in the accompanying Consolidated Statements of Operations. Assets obtained and liabilities incurred in connection with transfers reported as sold are initially recognized in the Consolidated Balance Sheets at fair value. In December 2019, the Company entered into two arrangements with a banking institution to sell trade accounts receivable balances for select customers. Under the programs, the Company has no risk of loss due to credit default and is charged a fee based on the nominal value of receivables sold and the time between the sale of the trade accounts receivables to banking institutions and collection from the customer. Under one of the programs, the Company services the trade receivables after sale and receives 90.0% of the trade receivables in cash at the time of sale and the remaining 10.0% in cash, net of fees, when the customer pays. As of December 31, 2019, under both programs, the Company sold $16.0 million in trade receivable balances, received $14.9 million in cash in December 2019 and incurred less than $0.1 million in fees. The Company expects to receive the remaining $1.0 million , net of fees, in 2020. In December 2019, the Company's Amended Credit Agreement was amended to allow the Company to sell trade accounts receivable to approved third parties in connection with Receivable Purchases Agreements, or similar agreements ("Agreements"). At any given time, the maximum amount subject to such Agreements is not allowed to exceed $10.0 million for a certain approved customer and $50.0 million in aggregate for any other approved group of customers. Inventories — Inventories are valued at lower of cost or net realizable value, cost being determined using the first-in, first-out (FIFO) cost method. Inventories in excess of requirements for current or anticipated orders have been written down to net realizable value. Pre-production design and development costs — The Company enters into contractual agreements with certain customers to design and develop molds, dies and tools (collectively, “tooling”). All such tooling contracts relate to parts that the Company will supply to customers under long-term supply agreements. Tooling costs are accumulated in work-in process inventory and are charged to operations as the related revenue from the tooling is recognized. The Company’s revenue recognition policies require the Company to make significant judgments and estimates regarding timing of recognition based on timing of the transfer of control to the customer. The Company analyzes several factors, including but not limited to, the nature of the products being sold and contractual terms and conditions in contracts with customers to help the Company make such judgments about revenue recognition. For tooling revenue recognized over time, the Company's significant judgments include, but are not limited to, estimated costs to completion, costs incurred to date, and assessments of risks related to changes in estimates of revenues and costs. The Company's management must make assumptions regarding the work required to fulfill the performance obligations, which is dependent upon the execution by the Company's subcontractors, among other variables and contract requirements. Periodically, the Company enters into contractually guaranteed reimbursement arrangements as a mechanism to collect amounts due from customers from tooling sales. Under these arrangements, amounts due from tooling sales are collected as parts are delivered over the part supply arrangement, in accordance with the specific terms of the arrangement. The amounts due from the customer in such transactions are recorded in “Prepaid expenses and other current assets” or “Other assets, net” based upon the expected term of the reimbursement arrangement. The following tooling related assets were included in the Consolidated Balance Sheets as of December 31, 2019 and 2018 : December, 31 In thousands 2019 2018 Inventories, net of progress billings and reserves $ 1,777 $ 4,262 Prepaid expenses and other current assets 530 469 Other assets, net 1,757 987 Total tooling related assets $ 4,064 $ 5,718 Amounts included in “Prepaid expenses and other current assets” include the short-term portion of receivables due under contractually guaranteed reimbursement arrangements. Company owned tooling is recorded in “Property, plant and equipment, net” at December 31, 2019 and December 31, 2018 . Property, plant and equipment — Property, plant, and equipment are stated at cost. Assets held under finance leases are recorded at the lower of the net present value of the minimum lease payments or the fair value of the leased asset at the inception of the lease. Please refer to Note 10, Leases, to these Consolidated Financial Statements for additional policy details related to all leases including finance leases. Property, plant and equipment, including property, plant and equipment under finance leases, are depreciated over their estimated useful lives using the straight-line method. Leasehold improvements are depreciated on a straight-line basis over the term of the lease or the life of the asset, whichever is shorter. The cost and accumulated depreciation amounts applicable to assets sold or otherwise disposed of are removed from the asset and accumulated depreciation accounts and any net gain or loss is included in the Consolidated Statements of Operations. Expenses for maintenance and repairs are charged to expense as incurred. Goodwill and other intangible assets — Goodwill represents costs in excess of fair values assigned to the underlying net assets of acquired companies. Goodwill and other intangible assets with indefinite lives are not amortized but are subject to annual impairment tests. All other intangible assets are amortized over their estimated useful lives, which range from 2 to 17 years. In performing impairment tests, the Company considers discounted cash flows and other market factors as best evidence of fair value. There are inherent uncertainties and management judgment required in these analyses. Please refer to Note 6, Goodwill and Long-Lived Assets and Note 7, Impairment, to these Consolidated Financial Statements for additional details regarding impairment calculations. Valuation of long-lived assets — The Company evaluates the recoverability of long-lived assets, or asset groups, whenever events or changes in circumstances indicate that carrying amounts may not be recoverable. Should such evaluations indicate that the related future undiscounted cash flows are not sufficient to recover the carrying values of the assets, such carrying values would be reduced to fair value and this adjusted carrying value would become the assets’ new cost basis. For long-lived assets held for sale, assets are written down to fair value, less costs to sell. Please refer to Note 7, Impairment, to these Consolidated Financial Statements for additional details regarding impairment calculations. Fair value is determined primarily using future anticipated cash flows that are directly associated with, and that are expected to arise as a direct result of the use and eventual disposition of the asset, or asset group, as well as market conditions and other factors. There are inherent uncertainties and management judgment required in these analyses. Contingencies and environmental obligations — The Company makes judgments and estimates in accordance with applicable accounting rules when it establishes reserves for legal proceedings, claims, investigations, environmental obligations and other contingent matters. Provisions for such matters are charged to expense when it is probable that a liability has been incurred and reasonable estimates of the liability can be made. Estimates of environmental liabilities are based on a variety of matters, including, but not limited to, the stage of investigation, the stage of the remedial design, evaluation of existing remediation technologies, and presently enacted laws and regulations. The amount and timing of all future expenses related to legal proceedings, claims, investigations, environmental obligations and other contingent matters may vary significantly from estimates. Please refer to Footnote 17 "Commitments and Contingencies" for additional details regarding the Company's contingencies and environmental obligations. Employer sponsored benefit plans — The Company recognizes the funded status of its defined benefit pension plans and post-retirement plans. Net benefit obligations are calculated based on actuarial valuations using key assumptions related to discount rates, mortality rates and expected return on plan assets. Derivative instruments — Derivative instruments are measured at fair value and recognized as either assets or liabilities on the Consolidated Balance Sheet in either current or non-current other assets or other accrued liabilities or other long-term liabilities depending upon maturity and commitment. For derivative instruments that are designated and qualify as a fair value hedge, the gain or loss on the derivative as well as the offsetting loss or gain on the hedged item attributable to the hedged risk are recognized in the Consolidated Statement of Operations. For derivative instruments that are designated and qualify as a cash flow hedge, the effective portion of the gain or loss on the derivative is reported as a component of other comprehensive income and reclassified into earnings in the same period or periods in which the hedge transaction affects earnings. The Company selectively uses financial instruments to manage market risk associated with exposure to fluctuations in interest rates and foreign currency rates. These financial exposures are monitored and managed by the Company as an integral part of its risk management program. The Company does not engage in derivative instruments for speculative or trading purposes. Please refer to Note 9, Derivatives, to these Consolidated Financial Statements for additional details regarding the Company's derivative instruments. Revenue recognition — The Company's revenues are generated from the design and manufacture of specialty engineered filtration media, industrial thermal insulating solutions, automotive thermal and acoustical barriers for filtration/separation and thermal/acoustical applications. The Company’s revenue recognition policies require the Company to make judgments and estimates. The Company analyzes several factors, including but not limited to, the nature of the products being sold and contractual terms and conditions in contracts with customers to help the Company make such judgments about revenue recognition. In applying the Company’s revenue recognition policy, determinations must be made as to when control of products passes to the Company’s customers which can be either at a point in time or over time depending on when control of the Company’s products transfers to its customers. Revenue is generally recognized at a point in time when control passes to customers upon shipment of the Company’s products and revenue is generally recognized over time when control of the Company’s products transfers to customers during the manufacturing process. If sales are recognized at a point in time, the Company’s standard sales and shipping terms are FOB shipping point, therefore, most point in time revenue is recognized upon shipment. However, the Company conducts business with certain customers on FOB destination terms and in these instances point in time revenue is recognized upon receipt by the customer. In circumstances when control transfers over time, revenue is recognized based on the extent of progress towards completion of the performance obligation. Due to the nature of the work required to be performed on many of the Company’s performance obligations, the estimation of total revenue and cost at completion is complex, subject to many variables and requires significant judgment. See Note 2, Revenue from Contracts with Customers, to these Consolidated Financial Statements. Sales returns and allowances are recorded as identified or communicated by the customer and internally approved. The Company does not provide customers with general rights of return for products sold; however, in limited circumstances, the Company will allow sales returns and allowances from customers if the products sold do not conform to specifications. The Company's accounting policy is to record shipping and handling activities occurring after control has passed to the customer as a fulfillment cost rather than as a distinct performance obligation. Shipping and handling expenses consist primarily of costs incurred to deliver products to customers and internal costs related to preparing products for shipment and are recorded as a cost of sales. Amounts billed to customers as shipping and handling are classified as revenue when services are performed. Research and development — Research and development costs are charged to expense as incurred and amounted to $11.2 million in 2019 , $10.6 million in 2018 , and $10.8 million in 2017 . Research and development costs were primarily comprised of development personnel salaries, prototype material costs and testing and trials of new products. Earnings per share — Basic earnings per common share are equal to net income divided by the weighted average number of common shares outstanding during the period. Diluted earnings per common share are equal to net income divided by the weighted average number of common shares outstanding during the period, including the effect of stock options and stock awards, if such effect is dilutive. Income taxes — The provision for income taxes is based upon income reported in the accompanying Consolidated Financial Statements. Deferred income taxes reflect the impact of temporary differences between the amounts of income and expense recognized for financial reporting purposes and such amounts recognized for tax purposes. In the event the Company was to determine that it would not be able to realize all or a portion of its deferred tax assets in the future, the Company would record a valuation allowance through a charge to income in the period that such determination was made. Conversely, if the Company was to determine that it would be able to realize its deferred tax assets in the future in excess of the net carrying amounts, the Company would decrease the recorded valuation allowance and record an increase to income in the period that such determination was made. Translation of foreign currencies — Assets and liabilities of foreign subsidiaries are translated at exchange rates prevailing on the balance sheet date. Revenues and expenses are translated at average exchange rates prevailing during the period. Any resulting translation gains or losses are reported in other comprehensive income (loss). Stock options and share grants — The Company accounts for awards of equity instruments under the fair value method of accounting and recognizes such amounts in the Consolidated Statements of Operations. The Company recognizes expense on a straight-line basis over the vesting period of the entire award and records forfeitures as they occur. The Company estimates the fair value of option grants based on the Black Scholes option-pricing model. Expected volatility and expected term are based on historical information. The calculation assumes that future volatility and expected term are not likely to materially differ from the Company’s historical stock price volatility and historical exercise data, respectively. Compensation expense for all restricted stock awards is recorded based on the market value of the stock on the grant date and recognized as expense over the vesting period of the award. Compensation expense for performance-based restricted stock is also impacted by the probability of achieving the performance targets. Recently Adopted Accounting Standards Effective January 1, 2019, the Company adopted the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2016-02, "Leases (Topic 842)", along with several additional clarification ASU's issued during 2018 (collectively, "New Lease Standard"). The New Lease Standard requires entities that lease assets with lease terms of more than 12 months to recognize right-of-use assets and lease liabilities created by those leases on their balance sheets. This New Lease Standard also requires new qualitative and quantitative disclosures to help investors and other financial statement users better understand the amount, timing, and uncertainty of cash flows arising from leases. The Company's adoption of the New Lease Standard was on a modified retrospective basis and did not have any impact on the Company's financial statements and disclosures for all periods prior to 2019. As part of the adoption of the New Lease Standard, the Company elected the package of practical expedients which allowed the Company to not re-assess 1) if any existing arrangements contained a lease, 2) the lease classification of any existing leases and 3) initial direct costs for any existing lease. The Company also elected the practical expedient which allows use of hindsight in determining the lease term for leases in existence at the date of adoption. Effective January 1, 2019, the Company reported lease right-of-use assets and lease liabilities on the Company's Consolidated Balance Sheets. Adoption of the New Lease Standard did not change the balances reported in the Company's 2019 Consolidated Statements of Operations, Consolidated Statements of Cash Flows, or Consolidated Statements of Comprehensive Income. See Footnote 10 "Leases" for additional information required as part of the adoption of the New Lease Standard. Effective January 1, 2019, the Company adopted the FASB issued ASU No. 2017-12, "Derivatives and Hedging (Topic 815): Targeted Improvements to Account for Hedging Activities". This ASU provides various improvements revolving around the financial reporting of hedging relationships that requires an entity to amend the presentation and disclosure of hedging activities to better portray the economic results of an entity's risk management activities in its financial statements. The adoption of this ASU did not have any impact on the Company’s consolidated financial statements and disclosures. Effective January 1, 2019, the Company adopted the FASB issued ASU No. 2018-02, "Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income". This ASU allows for reclassification of stranded tax effects resulting from the 2017 Tax Cuts and Jobs Act from accumulated other comprehensive income to retained earnings, but does not require the reclassification. The Company elected not to reclassify the income tax effects of the 2017 Tax Cuts and Jobs Act from accumulated other comprehensive income to retained earnings. Effective January 1, 2019, the Company adopted the FASB issued ASU No. 2018-07, "Compensation - Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting". This ASU expands the guidance for stock-based compensation to include share-based payment transactions for acquiring goods and services from nonemployees. The adoption of this ASU did not have any impact on the Company’s consolidated financial statements and disclosures. Effective July 1, 2019, the FASB ASU No. 2019-07, “Codification Updates to SEC Sections — Amendments to SEC Paragraphs Pursuant to SEC Final Rule Releases No. 33-10532, Disclosure Update and Simplification, and Nos. 33-10231 and 33-10442, Investment Company Reporting Modernization and Miscellaneous Updates (SEC Update)”. ASU 2019-07 aligns the guidance in various SEC sections of the Codification with the requirements of certain SEC final rules. The adoption of this ASU did not have any impact on the Company's consolidated financial statements and disclosures. Effective October 1, 2019, the Company adopted the FASB issued ASU No. 2017-04, "Intangibles - Goodwill and Other (Topic 350), Simplifying the Test for Goodwill Impairment." This ASU simplifies the subsequent measurement of goodwill by eliminating the second step of the goodwill impairment test and allows for an impairment of goodwill to be recorded as the difference in the carrying value and quantitative calculation of fair value (previously known as step one). Please refer to Footnote 7 "Impairment", for additional details of the annual goodwill impairment testing for its reporting units, including an impairment of $63.0 million which was recorded in the fourth quarter of 2019 in the Performance Materials segment. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | Revenue from Contracts with Customers The Company accounts for revenue in accordance with Accounting Standards Codification ("ASC") 606 Revenue from Contracts from Customers. The Company analyzes several factors, including but not limited to, the nature of the products being sold and contractual terms and conditions in contracts with customers to help the Company make such judgments about revenue recognition. The Company accounts for revenue from contracts with customers when there is approval and commitment from both parties, the rights of the parties are identified, payment terms are identified, the contract has commercial substance and collectability of consideration is probable. Revenue is primarily derived from customer purchase orders, master sales agreements, and negotiated contracts, all of which represent contracts with customers. The Company next identifies the performance obligations in the contract. A performance obligation is a promise to provide distinct goods or services. Performance obligations are the unit of account for purposes of applying the revenue standard and therefore determines when and how revenue is recognized. The Company determines the performance obligations at contract inception based on the goods that are promised in a contract with a customer. Typical performance obligations include automotive parts, automotive tooling, rolled good media and filter bags. The transaction price in the contract is determined based on the consideration to which the Company will be entitled in exchange for transferring products to the customer, excluding amounts collected on behalf of third parties (for example, sales taxes). The transaction price is typically stated on the purchase order or in a negotiated agreement. Certain contracts may include variable consideration in the transaction price, such as rebates, pricing discounts, price concessions, sales incentives, index pricing or other provisions that can decrease the transaction price. Estimates of variable consideration and determination of whether to include estimated amounts in the transaction price are based on reasonably available information (customer historical, current and forecasted data). In certain circumstances where a particular outcome is probable, the Company utilizes the most likely amount to which the Company expects to be entitled. The Company accounts for consideration payable to a customer as a reduction of the transaction price thereby reducing the amount of revenue recognized. Consideration payable to a customer includes cash amounts that the Company pays, or expects to pay, to a customer based on certain contract requirements. The Company recognizes revenue as performance obligations are satisfied, which can be either over time or at a point in time, depending on when control of the Company’s products transfers to its customers. In circumstances when control transfers over time, revenue is recognized based on the extent of progress towards completion of the performance obligation. Due to the nature of the work required to be performed on many of the Company’s performance obligations, the estimation of total revenue and cost at completion is complex, subject to many variables and requires judgment. The selection of the method to measure progress towards completion requires judgment and is based on the nature of the products to be provided. The Company generally uses the cost-to-cost measure of progress for contracts because it best depicts the transfer of control to the customer which occurs as costs are incurred on contracts. Under the cost-to-cost measure of progress, the extent of progress towards completion is measured based on the ratio of costs incurred to date to the total estimated costs at completion of the performance obligation. Revenues are recorded proportionally as costs are incurred. For tooling revenue recognized over time, the Company makes judgments which includes, but not limited to, estimated costs to completion, costs incurred to date, and assesses risks related to changes in estimates of revenues and costs. In doing so, management must make assumptions regarding the work required to fulfill the performance obligations, which is dependent upon the execution by the Company's subcontractors, among other variables and contract requirements. Changes in estimates for revenue recognized over time are recorded by the Company in the period they become known. Changes are recognized on a cumulative catch-up basis in net sales, costs of sales, and operating income. The cumulative catch up adjustment recognizes in the current period the cumulative effect of changes in estimates on current and prior periods. Performance Obligations The following is a description of products and performance obligations, separated by reportable segments, from which the Company generates its revenue. For more detailed information about reportable segments, see Note 15, Segment Information, to these Consolidated Financial Statements. Segment Performance Materials Products Products for this segment include filtration media solutions primarily for air, fluid power, life science and industrial applications, gasket and sealing solutions, thermal insulation, energy storage, and other engineered products. Performance Obligations These contracts typically have distinct performance obligations, which is the promise to transfer the media solutions to the Company’s customers. The Company recognizes revenue at a point in time or over time, based upon when control transfers to the customer. If revenue is recognized at a point in time, the performance obligation is typically satisfied upon shipment and in accordance with shipping terms. In circumstances when control transfers over time, revenue is recognized based on the extent of progress towards completion of the performance obligation. Customer payment terms are negotiated on a contract-by-contract basis and typically range from 30 to 90 days. Segment Technical Nonwovens Products This segment produces needle punch nonwoven solutions including industrial filtration and advanced materials products. Industrial Filtration products include nonwoven rolled-good felt media and filter bags used primarily in industrial air and liquid filtration applications. Advanced materials products include nonwoven rolled good media used in commercial applications and predominantly serves the geosynthetic, automotive, industrial, medical, and safety apparel markets. The automotive media is provided to tier-one suppliers as well as the Company’s Thermal Acoustical Solutions segment. Performance Obligations These contracts typically have distinct performance obligations, which is the promise to transfer the industrial filtration or advanced materials products to the Company’s customers. The Company recognizes revenue at a point in time or over time, based upon when control transfers to the customer. If revenue is recognized at a point in time, the performance obligation is typically satisfied upon shipment and in accordance with shipping terms. In circumstances when control transfers over time, revenue is recognized based on the extent of progress towards completion of the performance obligation. Customer payment terms are negotiated on a contract-by-contract basis and typically range from 30 to 90 days. For filter bag sales, the Company may enter into warranty agreements that are implied or sold with the product to provide assurance that a product will function as expected and in accordance with certain specifications. Therefore, this type of warranty is not a separate performance obligation. Segment Thermal Acoustical Solutions Products Parts - The segment produces a full range of innovative engineered products tailored for the transportation sector to thermally shield sensitive components from high heat, improve exhaust gas treatment and lower harmful emissions as well as assist in the reduction of noise vibration and harshness. The majority of products are sold to original equipment manufacturers and tier-one suppliers. Tooling - The Company enters into contractual agreements with certain customers within the automotive industry, to design and develop molds, dies and tools (collectively, “tooling”). Performance Obligations Parts - Customer contracts typically have distinct performance obligations, which is the promise to transfer manufactured parts to these customers. The Company recognizes parts revenue at a point in time or over time, based upon when control transfers to the customer. If revenue is recognized at a point in time, the performance obligation is typically satisfied upon shipment and in accordance with shipping terms. In circumstances when control transfers over time, revenue is recognized based on the extent of progress towards completion of the performance obligation. Customer payment terms are negotiated on a contract-by-contract basis and typically range from 30 to 90 days. Tooling - Customer contracts typically have distinct performance obligations and are generally completed within one year. The Company periodically enters into multiple contracts with a customer at or near the same time which may be combined for purposes of determining the appropriate transaction price. The Company allocates the transaction price to each performance obligation in the contract based on a relative stand-alone selling price using costs incurred plus expected margin. The corresponding revenues are recognized over time as the related performance obligations are satisfied. Tooling customer payment terms typically range from 30 to 90 days after title transfers to the customer. Occasionally customers make progress payments as the tool is constructed. Contract Assets and Liabilities The Company’s contract assets primarily include unbilled amounts typically resulting from sales under contracts when the over time method of revenue recognition is utilized and revenue recognized exceeds the amount billed to the customer. These unbilled accounts receivable in contract assets are transferred to accounts receivable upon invoicing, typically when the right to payment becomes unconditional in which case payment is due based only upon the passage of time. The Company’s contract liabilities primarily relate to advance payments received from customers, and deferred revenue. These contract liabilities represent the Company’s obligation to transfer its products to its customers for which the Company has received, or is owed consideration from its customers. Contract liabilities are included in deferred revenue on the Company’s Condensed Consolidated Balance Sheets. Contract assets and liabilities consisted of the following: In thousands December 31, 2019 December 31, 2018 Dollar Change Contract assets $ 28,245 $ 23,040 $ 5,205 Contract liabilities $ 1,441 $ 4,537 $ (3,096 ) The $5.2 million increase in contract assets from December 31, 2018 to December 31, 2019 was primarily due to timing of tooling billings to customers. The $3.1 million decrease in contract liabilities from December 31, 2018 to December 31, 2019 was primarily due to revenue recognized of $4.5 million in 2019 related to contract liabilities at December 31, 2018, partially offset by customer deposits in 2019. Disaggregated Revenue The Company disaggregates revenue from customers by geographic region, as it believes this disclosure best depicts how the nature, amount, timing and uncertainty of the Company's revenue and cash flows are affected by economic factors. Disaggregated revenue by geographical region, based on the region in which the sales originated, for the years ended December 31, 2019 and 2018 were as follows: Year Ended December 31, 2019 In thousands Performance Materials Technical Nonwovens Thermal Acoustical Solutions Eliminations and Other Consolidated Net Sales North America $ 176,094 $ 157,579 $ 245,870 $ (24,287 ) $ 555,256 Europe 61,889 68,456 98,221 (718 ) 227,848 Asia 7,497 29,311 17,486 — 54,294 Total Net Sales $ 245,480 $ 255,346 $ 361,577 $ (25,005 ) $ 837,398 Year Ended December 31, 2018 In thousands Performance Materials Technical Nonwovens Thermal Acoustical Solutions Eliminations and Other Consolidated Net Sales North America $ 117,313 $ 167,519 $ 250,133 $ (25,121 ) $ 509,844 Europe 49,055 73,912 99,529 (697 ) 221,799 Asia 2,849 35,640 15,765 — 54,254 Total Net Sales $ 169,217 $ 277,071 $ 365,427 $ (25,818 ) $ 785,897 |
Acquisitions and Divestitures
Acquisitions and Divestitures | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Acquisitions and Divestitures | Acquisitions and Divestitures On August 31, 2018, the Company completed the acquisition of Interface Performance Materials ("Interface"), based in Lancaster, Pennsylvania. A globally-recognized leader in the delivery of engineered sealing solutions, the Interface operations manufacture wet-laid gasket and specialty materials primarily serving OEM and Tier I manufacturers in the agriculture, construction, earthmoving, industrial, and automotive segments. The transaction strengthens the Company's position as an industry-leading global provider of filtration materials and expands the Company's end markets into attractive adjacencies. The Company acquired one hundred percent of Interface for $268.4 million , net of cash acquired of $5.2 million . In the second quarter of 2019, the Company finalized the post closing adjustment leading to a decrease in purchase price of $1.4 million and resulting in a final purchase price of $267.0 million . The purchase price was financed with a combination of cash on hand and $261.4 million of borrowings from the Company's amended $450 million credit facility. The operating results of the Interface businesses have been included in the Consolidated Statements of Operations since August 31, 2018, the date of acquisition, and are reported within the Performance Materials reporting segment. During the year ended December 31, 2018 , the Company incurred $3.4 million of transaction costs, related to the acquisition of Interface. These transaction costs include legal fees and other professional services fees to complete the transaction. These expenses have been recognized in the Company's Condensed Consolidated Statements of Operations as selling, product development and administrative expenses. The following table summarizes the fair values of identifiable assets acquired and liabilities assumed at the date of the acquisition: In thousands Accounts receivable $ 25,182 Inventories 17,013 Prepaid expenses and other current assets 2,382 Property, plant and equipment 40,902 Goodwill (Note 6) 129,749 Other intangible assets (Note 6) 106,900 Other assets 308 Total assets acquired, net of cash acquired $ 322,436 Current liabilities (11,319 ) Deferred tax liabilities (Note 16) (24,081 ) Benefit plan liabilities (Note 12) (19,002 ) Other long-term liabilities (1,031 ) Total liabilities assumed (55,433 ) Total purchase price, net of cash acquired $ 267,003 The following table reflects the unaudited pro forma operating results of the Company for the years ended December 31, 2019 , 2018 and 2017 , which gives effect to the acquisition of Interface as if it had occurred on January 1, 2017. The pro forma information includes the historical financial results of the Company and Interface. The pro forma results are not necessarily indicative of the operating results that would have occurred had the acquisition been effective January 1, 2017, nor are they intended to be indicative of results that may occur in the future. The pro forma information does not include the effects of any synergies related to the acquisition. For The Years Ended (Actual) (Unaudited (Unaudited In thousands 2019 2018 2017 Net Sales $ 837,398 $ 888,355 $ 840,040 Net Income $ (70,513 ) $ 37,537 $ 36,773 Earnings per share: Basic $ (4.08 ) $ 2.18 $ 2.16 Diluted $ (4.08 ) $ 2.17 $ 2.12 Included in net income during the year ended December 31, 2019 was $64.2 million of impairment charges in the Performance Materials segment, $12.3 million of intangible assets amortization expense related to acquired Interface intangible assets and $9.8 million of interest expense primarily to finance the Interface acquisition. Pro forma adjustments during the year ended December 31, 2018 increased net income by $7.1 million . Included in net income for the year ended December 31, 2018 was $10.2 million of intangible assets amortization expense and $3.5 million of interest expense associated with borrowings under the Company's Amended Credit Agreement. Net income was adjusted to exclude items such as corporate strategic initiatives expenses, Interface management fee expenses and tax valuation allowance expenses. Pro forma adjustments during the year ended December 31, 2017 reduced net income by $13.8 million . Included in net income for the year ended December 31, 2017 was $9.2 million of intangible assets amortization expense and $7.1 million of interest expense associated with borrowings under the Company's Amended Credit Agreement. Net income was adjusted to exclude items such as Interface management fee expenses and tax valuation allowance expenses. On July 12, 2018, the Company acquired certain assets and assumed certain liabilities of the Precision Filtration division of Precision Custom Coatings ("PCC") based in Totowa, NJ. Precision Filtration is a producer of high-quality, air filtration media principally serving the commercial and residential HVAC markets with a range of low efficiency through high-performing air filtration media. The Company acquired the assets and liabilities of PCC for $1.6 million in cash with additional cash payments of up to $1.6 million to be made based on the achievement of certain future financial targets through 2022. The estimate of contingent consideration to be earned was revalued to fair value at December 31, 2019. PCC had a minimal impact on the Company's sales and operating income from the date of the acquisition in 2018 and the year ended December 31, 2019 . Divestiture On May 9, 2019, the Company sold its Texel Geosol, Inc. ("Geosol") business, a subsidiary of the Company's Texel Technical Materials, Inc. ("Texel") business, for a cash purchase price of $3.0 million . Under the terms of the arrangement, $0.4 million of the total purchase price will be withheld and paid to the Company in three annual payments of approximately $0.1 million . The disposition was completed pursuant to a Sale Agreement, dated May 9, 2019, by and between the Company, and the third-party buyer. The Company recognized a pre-tax gain on the sale of $1.5 million , reported as non-operating income in the second quarter of 2019. Net of income taxes, the Company reported a gain on sale of $1.3 million in the second quarter of 2019. The Company did not report Geosol as a discontinued operation as it was not considered a strategic shift in Lydall's business. Accordingly, the operating results of Geosol are included in the operating results of the Company through the sale date and in comparable periods. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories as of December 31, 2019 and 2018 were as follows: December 31, In thousands 2019 2018 Raw materials $ 36,322 $ 37,731 Work in process 14,873 18,296 Finished goods 29,349 28,438 Total inventories $ 80,544 $ 84,465 Included in work in process is net tooling inventory of $1.8 million and $4.3 million at December 31, 2019 and 2018 , respectively. |
Property, Plant and Equipment,
Property, Plant and Equipment, Net | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment, Net | Property, Plant and Equipment, Net Property, plant and equipment as of December 31, 2019 and 2018 were as follows: Estimated Useful Lives December 31, In thousands 2019 2018 Land – $ 6,268 $ 6,280 Buildings and improvements 10-35 years 107,721 104,036 Machinery and equipment 5-25 years 308,457 289,059 Office equipment 2-8 years 36,905 36,110 Vehicles 3-6 years 1,516 1,640 Assets under finance leases: Land – 225 228 Buildings and improvements 2-10 years — 229 Machinery and equipment 8-10 years 200 1,005 Office equipment 5 years 31 32 461,323 438,619 Accumulated depreciation (265,586 ) (244,098 ) Accumulated depreciation of finance leases (143 ) (608 ) 195,594 193,913 Construction in progress 26,048 19,456 Total property, plant and equipment, net $ 221,642 $ 213,369 Depreciation expense was $27.1 million in 2019 , $23.4 million in 2018 , and $21.4 million in 2017 |
Goodwill and Long-Lived Assets
Goodwill and Long-Lived Assets | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Long-Lived Assets | Goodwill and Long-Lived Assets Gross and net carrying amounts of goodwill at December 31, 2019 and 2018 were as follows: In thousands Performance Materials Technical Nonwovens Thermal Acoustical Solutions Totals Goodwill $ 144,626 $ 52,337 $ 12,160 $ 209,123 Accumulated amortization/impairment — — (12,160 ) (12,160 ) Balance at December 31, 2018 144,626 52,337 — 196,963 Goodwill 143,658 53,254 12,160 209,072 Accumulated amortization/impairment (63,000 ) — (12,160 ) (75,160 ) Balance at December 31, 2019 $ 80,658 $ 53,254 $ — $ 133,912 The changes in the carrying amounts of goodwill in 2019 and 2018 were as follows: In thousands Performance Materials Technical Nonwovens Totals Balance at January 1, 2018 $ 13,307 $ 55,662 $ 68,969 Goodwill addition 131,509 — 131,509 Currency translation adjustment (190 ) (3,325 ) (3,515 ) Balance at December 31, 2018 144,626 52,337 196,963 Goodwill reduction (662 ) — (662 ) Goodwill impairment (63,000 ) — (63,000 ) Currency translation adjustment (306 ) 917 611 Balance at December 31, 2019 $ 80,658 $ 53,254 $ 133,912 Goodwill Associated with Acquisitions and Divestitures The net goodwill reduction of $0.7 million in 2019 within the Performance Materials segment was due to a goodwill reduction of $1.3 million as a result of post-closing purchase price adjustments in the second and third quarters of 2019 related to the acquisition of Interface Performance Materials on August 31, 2018, partially offset by acquisition activity in the second quarter of 2019 resulting in a goodwill addition of $0.6 million . The additional goodwill of $131.5 million in 2018 within the Performance Materials segment results from the two acquisitions completed in the third quarter of 2018. The Interface acquisition accounted for $131.0 million of the $131.5 million increase. The amount allocated to goodwill was reflective of the benefits the Company expected to realize from the expansion of the Company's engineered materials offering, new product development and Interface's assembled workforce. None of the goodwill associated with the Interface acquisition is expected to be deductible for income tax purposes. Goodwill Impairment During the fourth quarter of 2019 , the Company performed its annual impairment analysis of the goodwill in the Performance Materials reporting unit (PM reporting unit) and in the Technical Nonwovens reporting unit (TNW reporting unit). The Company used the qualitative method to analyze the goodwill for the TNW reporting unit by considering capital markets environment, economic conditions, industry trends, results of operations, and other factors. The Company also considered changes in assumptions used in the Company's most recent quantitative annual testing, including results of operations, the magnitude of excess of fair value over carrying value and other factors. As a result of this qualitative analysis, the Company concluded that the TNW reporting unit's fair value more likely than not exceeds its carrying value and as a result, the quantitative impairment assessment was not required to be completed. For the PM reporting unit, the Company recorded a goodwill impairment charge of $63.0 million during the fourth quarter of 2019. See Note 7, Impairment, to these Consolidated Financial Statements for further discussion of the goodwill impairment. Other Intangible Assets The table below presents the gross carrying amount and, as applicable, the accumulated amortization of the Company’s acquired intangible assets other than goodwill included in “Other intangible assets, net” in the Consolidated Balance Sheets as of December 31, 2019 and 2018 : December 31, 2019 December 31, 2018 In thousands Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Amortized intangible assets Customer relationships $ 142,400 $ (30,648 ) $ 141,455 $ (11,453 ) Patents 759 (607 ) 4,333 (3,816 ) Technology 2,500 (977 ) 2,500 (810 ) Trade names 7,293 (5,143 ) 7,235 (2,840 ) License agreements 610 (610 ) 619 (619 ) Other 551 (551 ) 561 (561 ) Total amortized intangible assets $ 154,113 $ (38,536 ) $ 156,703 $ (20,099 ) I n connection with the acquisition of Interface on August 31, 2018, the Company recorded intangible assets of $106.9 million , which included $103.7 million of customer relationships and $3.2 million of trade names. As of December 31, 2019, the weighted average useful lives of Interface's intangible assets was 11 years. Amortization of all intangible assets for the years ended December 31, 2019 , 2018 , and 2017 was $21.5 million , $9.3 million , and $4.5 million , respectively. Estimated amortization expense for intangible assets is expected to be $20.8 million , $16.3 million , $14.4 million , $12.7 million , $11.3 million , and $40.0 million for each of the years ending December 31, 2020 through 2024 and thereafter, respectively. As of December 31, 2019 , the weighted average useful life of intangible assets was approximately 11 years. |
Impairments of Goodwill and Oth
Impairments of Goodwill and Other Long-Lived Assets | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Impairments of Goodwill and Other Long-Lived Assets | Impairments of Goodwill and Other Long-Lived Assets During the fourth quarter of 2019, in accordance with ASC 350 Intangibles - Goodwill and Other , the Company performed its annual impairment test of its goodwill held by the Performance Materials and Technical Nonwovens reporting units. In addition, in accordance with ASC 360 Property, Plant & Equipment , the Company performed an impairment test on certain of its long-lived assets (principally machinery and equipment, and buildings and improvements) due to events and changes in circumstances during the fourth quarter of 2019 that indicated an impairment might have occurred. As a result of these impairment tests, the Company recorded the following impairment charges during the fourth quarter of 2019: In thousands Performance Materials Technical Nonwovens Thermal Acoustical Solutions Totals Impairment of goodwill $ 63,000 $ — $ — $ 63,000 Impairment of other long-lived assets 1,206 — — 1,206 Total impairments 64,206 — — 64,206 Goodwill As a result of the Interface acquisition in August 2018 and recording the acquired assets and liabilities at fair value, there was a significant increase to the Performance Materials segment goodwill and intangible assets. Any declines in financial projections, including changes to key assumptions, could have a material, negative impact on the fair value of the segment, and therefore could result in an impairment. During the fourth quarter of 2019 the Company recorded a goodwill impairment charge of $63.0 million in the Performance Materials segment. Lower than expected 2019 financial results from slowed demand in the sealing products' markets, combined with revised future financial projections, resulted in a reduction in the long-term forecasts of sales and cash generation as compared to prior projections for the Performance Materials reporting unit. As a result, the carrying value of the Performance Materials reporting unit exceeded its fair value by $63.0 million , resulting in the impairment charge. Those factors, along with other factors, caused the Company to perform a quantitative goodwill impairment assessment. The Company weighted equally both an income approach (discounted cash flow model) and a market approach, both level 3 unobservable inputs, to determine the Performance Materials reporting unit's fair value. The Company’s significant assumptions in the discounted cash flow model included, but were not limited to, future cash flow projections, the weighted average cost of capital, the terminal growth rate, and the tax rate. Calculation of future cash flows includes management estimates and assumptions that are based on the best available information as of the date of the assessment. Future cash flows can be affected by numerous factors including changes in economic, industry or market conditions, changes in the underlying business or products of the reporting unit, changes in competition and changes in technology. There are inherent uncertainties and management judgment required in an analysis of goodwill impairment. The Company believes the income approach was appropriate because it provided a fair value estimate based upon the reporting unit's expected long-term operations and cash flow performance. The Company also used a form of the market approach, which was derived from metrics of publicly traded companies or historically completed transactions of comparable businesses. The selection of comparable businesses is based on the markets in which the reporting unit operates giving consideration to risk profiles, size, geography, and diversity of products and services. Other assumptions included adding an implied control premium to the valuation based on estimating the fair value on a controlling basis, which was derived from research on control premiums observed in recent mergers and acquisitions in the industries in which Lydall operates. The Company believes the market approach was appropriate because it provided a fair value using multiples from companies with operations and economic characteristics similar to the Performance Materials reporting unit. The Company also performed an overall reconciliation to corroborate the fair value derived from the income and market approaches to Lydall's overall market capitalization. Other Long-Lived Assets The Company performed an impairment assessment on the long-lived assets for its two Thermal Acoustical Solutions European plants during the fourth quarter of 2019 due to negative 2019 financial performance compared to budget, changes in financial projections and general weakening in the European automotive sector. The Company considered each operating plant's asset group, primarily consisting of machinery and equipment, and buildings and improvements. Step one of the impairment tests required by ASC 350 failed as the undiscounted cash flows over the useful life of each operating plant's primary assets did not exceed the separate plant's asset groups carrying values of $28.5 million and $12.5 million . As part of step two of the impairment assessment, the Company used the market approach to determine fair value based on independent appraisals of the long-lived assets. The Company determined that impairment did not exist as the fair value of the long-lived asset groups for each operating plant exceeded their carrying amounts. Small changes in future operating results could result in a future non-cash impairment charge. During the fourth quarter of 2019, as a result of negative cash flows in 2019 and an expected reduction in demand from certain customers further impacting net sales and cash flows in 2020, the Company tested for impairment a discrete long-lived asset group (primarily consisting of machinery and equipment and patents) in the Performance Materials segment with a carrying value of approximately $3.0 million . To determine the recoverability of this asset group, the Company completed an undiscounted cash flow analysis (income approach) and compared it to the asset group carrying value in accordance with ASC 350. This analysis was primarily dependent on the expectations for net sales over the estimated remaining useful life of the underlying asset group. The impairment test concluded that the asset group was not recoverable as the resulting undiscounted cash flows were less than their carrying amount. The Company then determined that fair value of the asset group exceeded its carrying value and recorded a long-lived asset impairment charge of $1.2 million . |
Long-term Debt and Financing Ar
Long-term Debt and Financing Arrangements | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Long-term Debt and Financing Arrangements | Long-term Debt and Financing Arrangements On August 31, 2018, the Company amended and restated its $175 million senior secured revolving credit agreement ("Amended Credit Agreement") that increased the available borrowing from $175 million to $450 million , added three additional lenders and extended the maturity date from July 7, 2021 to August 31, 2023. Under the terms of the Amended Credit Agreement, the lenders are providing up to a $450 million credit facility (the “Facility”) to the Company, under which the lenders provided a term loan commitment of $200 million and revolving loans and issue letters of credit to or for the benefit of the Company and its subsidiaries of up to $250 million. The Facility may be increased by an aggregate amount not to exceed $150 million through an accordion feature, subject to specified conditions. The Facility is secured by substantially all of the assets of the Company. Interest is charged on borrowings at the Company’s option of either: (i) Base Rate plus the Applicable Rate, or (ii) the Eurodollar Rate plus the Applicable Rate. The Base Rate is a fluctuating rate equal to the highest of (a) the federal funds rate plus 0.50% , (b) the prime rate as set by Bank of America, and (c) the Eurocurrency Rate plus 1.00% . The Eurocurrency Rate means (i) if denominated in LIBOR quoted currency, a fluctuating LIBOR per annum rate equal to the London Interbank Offered Rate; (ii) if denominated in Canadian Dollars, the rate per annum equal to the Canadian Dollar Offered Rate; or (iii) the rate per annum as designated with respect to such alternative currency at the time such alternative currency is approved by the Lenders. The Applicable Rate is determined based on the Company’s Consolidated Leverage Ratio (as defined in the Amended Credit Agreement). The Applicable Rate added to the Base Rate Committed Loans ranges from 0.00% to 1.25% , and the Applicable Rate added to Eurocurrency Rate Committed Loans and Letters of Credit ranges from 0.75% to 2.00% . The Company pays a quarterly fee ranging from 0.15% to 0.275% on the unused portion of the revolving commitment. The Company has entered into multiple interest rate swaps to convert a portion of the Company's one-month LIBOR-based borrowings from a variable rate to a fixed rate. See Note 9, Derivatives, to these Consolidated Financial Statements. The Company is permitted to prepay term and revolving borrowings in whole or in part at any time without premium or penalty, subject to certain minimum payment requirements, and the Company is generally permitted to irrevocably cancel unutilized portions of the revolving commitments under the Amended Credit Agreement. The Company is required to repay the term commitment in an amount of $2.5 million per quarter beginning with the quarter ending December 31, 2018 through the quarter ending June 30, 2023. The Amended Credit Agreement contains covenants required of the Company and its subsidiaries, including various affirmative and negative financial and operational covenants. The Company is required to meet certain quarterly financial covenants calculated from the four fiscal quarters most recently ended, including: (i) a minimum consolidated fixed charge coverage ratio, which requires that at the end of each fiscal quarter the ratio of (a) consolidated EBITDA to (b) the sum of consolidated interest charges, redemptions, non-financed maintenance capital expenditures, restricted payments and taxes paid, each as defined in the Amended Credit Agreement, may not be lower than 1.25 to 1.0; and (ii) a consolidated net leverage ratio, which requires that at the end of each fiscal quarter the ratio of consolidated funded indebtedness minus consolidated domestic cash to consolidated EBITDA, as defined in the Amended Credit Agreement, may not be greater than 3.5 to 1.0. The Company was in compliance with all covenants at December 31, 2019 . At December 31, 2019 , the Company had borrowing availability of $121.6 million under the Facility, net of $273.0 million of borrowings outstanding and standby letters of credit outstanding of $1.9 million . The borrowings outstanding include a $146.1 million term loan, net of $0.4 million in debt issuance costs being amortized to interest expense over the debt maturity period. In addition to the amounts outstanding under the Facility, the Company has various foreign credit facilities totaling approximately $7.0 million . At December 31, 2019 , the Company's foreign subsidiaries had $2.1 million in standby letters of credit outstanding. The Company also has finance lease agreements for machinery and equipment at multiple operations requiring monthly principal and interest payments through 2020. Total outstanding debt consists of: December 31, In thousands Effective Rate Maturity 2019 2018 Revolver loan 3.80% 8/31/2023 $ 126,500 $ 138,000 Term loan, net of debt issuance costs 3.80% 8/31/2023 146,106 186,498 Finance leases 0.00% - 2.09% 2020 35 315 272,641 324,813 Less portion due within one year (9,928 ) (10,172 ) Total long-term debt, net of debt issuance costs $ 262,713 $ 314,641 As of December 31, 2019 , total debt maturing in 2020 , 2021 , 2022 , and 2023 is $10.0 million , $10.0 million , $10.0 million , and $243.0 million , respectively. The weighted average interest rate on long-term debt was 4.3% for the year ended December 31, 2019 , compared with 3.4% and 2.2% for the years ended December 31, 2018 and 2017 , respectively. The carrying value of the Company’s $450 million Facility approximates fair value given the variable rate nature of the debt. The fair values of the Company’s long-term debt are determined using discounted cash flows based upon the Company’s estimated current interest cost for similar type borrowings or current market value, which falls under Level 2 of the fair value hierarchy. |
Derivatives
Derivatives | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | Derivatives The Company selectively uses financial instruments to manage market risk associated with exposure to fluctuations in interest rates and foreign currency rates. These financial exposures are monitored and managed by the Company as an integral part of its risk management program. Interest Rate Hedging The Company’s interest rate exposure is most sensitive to fluctuations in interest rates in the United States and Europe, which impact interest paid on its debt. The Company has debt with variable rates of interest based generally on LIBOR. From time to time, the Company enters into interest rate swap agreements to manage interest rate risk. These instruments are designated as cash flow hedges and are recorded at fair value using Level 2 observable market inputs. In November 2018, the Company entered into a five -year interest rate swap agreement with a bank which converts the interest on a notional $139.0 million of the Company's one-month LIBOR-based borrowings under its Amended Credit Agreement from a variable rate, plus the borrowing spread, to a fixed rate of 3.09% plus the borrowing spread. The notional amount reduces quarterly by fluctuating amounts through August 2023. In April 2017, the Company entered into a three -year interest rate swap agreement with a bank which converts the interest on a notional $60.0 million of the Company's one-month LIBOR-based borrowings under its Amended Credit Agreement from a variable rate, plus the borrowing spread, to a fixed rate of 1.58% plus the borrowing spread. The notional amount reduces quarterly by $5.0 million through March 31, 2020. These interest rate swap agreements were accounted for as cash flow hedges. Effectiveness of these derivative agreements are assessed quarterly by ensuring that the critical terms of the swaps continue to match the critical terms of the hedged debt. Net Investment Hedges The Company’s operations are subject to certain risks, including foreign currency exchange rate fluctuations. From time to time, the Company enters into cross-currency swaps designated as hedges, recorded at fair value using Level 2 observable market inputs, to protect the Company's net investments in subsidiaries denominated in currencies other than the US dollar. In November 2019, the Company entered into three fixed-to-fixed cross-currency swaps with banking institutions with aggregate notional amounts totaling €67.8 million ( $75 million U.S. dollar equivalent). These swaps hedge a portion of Lydall, Inc's net investment in a Euro functional currency denominated subsidiary against the variability of exchange rate translation impacts between the U.S. Dollar and Euro. These contracts require monthly cash interest exchanges over the life of the contracts with the Company recognizing a reduction to interest expense due to the favorable interest rate differential between the U.S. dollar and Euro. Also, settlement of the notional €22.6 million ( $25 million U.S. Dollar equivalent) cross-currency swaps occur at maturity dates of August 2021, August 2022 and August 2023. The Company assesses hedge effectiveness of the cross-currency swaps quarterly by ensuring the critical terms of the swaps continue to match the critical terms of the designated net investment. The Company elected to assess effectiveness using the spot method, and as a result, records the interest rate differential monthly in the Company's Statement of Operations. Derivative instruments are recognized as either assets or liabilities on the balance sheet in either current or non-current other assets or other accrued liabilities or other long-term liabilities depending upon maturity and commitment. For derivative instruments that are designated and qualify as a cash flow hedge, the effective portion of the gain or loss on the derivative is reported as a component of other comprehensive income and reclassified into earnings in the same period or periods in which the hedge transaction affects earnings. Any ineffective portion, or amounts related to contracts that are not designated as hedges, are recorded directly to earnings. The Company's policy for classifying cash flows from derivatives is to report the cash flows consistent with the underlying hedged item. The Company does not use derivatives for speculative or trading purposes. The following table sets forth the fair value amounts of derivative instruments held by the Company: December 31, 2019 December 31, 2018 In thousands Asset Derivatives Liability Derivatives Asset Derivatives Liability Derivatives Derivatives designated as hedging instruments: Interest rate contracts $ 2 $ 4,538 $ 179 $ 2,738 Cross-currency swaps — 1,817 — — Total derivatives $ 2 $ 6,355 $ 179 $ 2,738 The following table sets forth the (loss) income, recorded in accumulated other comprehensive loss, net of tax, for the years ended December 31, 2019 and 2018 for derivatives held by the Company and designated as hedging instruments: Years Ended 2019 2018 Cash flow hedges: Interest rate contracts $ (1,500 ) $ (2,096 ) Cross-currency swaps $ (1,403 ) $ — Total derivatives $ (2,903 ) $ (2,096 ) |
Leases (Notes)
Leases (Notes) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Leases | Leases From time to time, the Company enters into arrangements with vendors to provide certain tangible assets used in the Company's operations which qualify as a lease pursuant to ASC 842, Leases . The tangible assets leased include buildings, office equipment, machinery and vehicles. The Company's leases have remaining terms of a few months to 14 years , some of which have options to extend for a period of up to 7 years and some of which have options to terminate within 1 year . At inception of the arrangement, the Company determines if an arrangement is a lease based on assessment of the terms and conditions of the contract. Operating leases are included in Operating lease right-of-use (“ROU”) assets, other accrued liabilities, and Long-term operating lease liabilities in the Company's condensed consolidated balance sheets. Finance leases are included in property, plant and equipment, Current portion of long-term debt, and long-term debt in the Company's condensed consolidated balance sheets. ROU assets represent the Company's right to use an underlying asset for the lease term and lease liabilities represent the Company's obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. While the overwhelming majority of leases have fixed payments schedules, some leases have variable lease schedules based on market indices such as LIBOR or include additional payments based on excess consumption of services. For leases on a variable schedule based on a market index, the current lease payment amount is used in the calculation of the lease liability and corresponding asset included on the balance sheet. For leases with additional payments based on excess consumption of services, no amount is included in the calculation of the lease liability or corresponding asset as it is not probable excess consumption will continue in the future. As most leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. At December 31, 2019 , the weighted average discount rate used for operating and finance leases is 4.39% and 1.61% , respectively. The implicit rate is used when readily determinable from a lease. The operating lease ROU asset also includes any lease payments made in advance of the assets use and excludes lease incentives received. The Company's lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. The Company has lease agreements with lease and non-lease components, which are generally accounted for as one component as permitted by ASC 842. After consideration of any options to terminate early which are reasonably certain to be executed or any options to extend which are not reasonably certain to be executed, any lease with a term of 12 months or less is considered short-term. As permitted by ASC 842, short-term leases are excluded from the ROU Asset and Lease Liability accounts on the condensed consolidated balance sheets. Consistent with all other operating leases, short-term lease expense is recorded on a straight-line basis over the lease term. The components of lease expense are as follows: In thousands For the year ended December 31, 2019 Finance lease expense: Amortization of right-of-use assets $ 81 Interest on lease liabilities 2 Operating lease expense 6,510 Short-term lease expense 918 Variable lease expense 199 Total lease expense $ 7,710 Supplemental balance sheet information related to leases are as follows: In thousands, except lease term December 31, 2019 Operating leases: Operating lease right-of-use assets $ 23,116 Short-term lease liabilities, included in "Other accrued liabilities" $ 4,789 Long-term lease liabilities 18,424 Total operating lease liabilities $ 23,213 Finance leases: Property, plant and equipment $ 456 Accumulated depreciation (143 ) Property, plant and equipment, net $ 313 Short-term lease liabilities, included in debt $ 35 Long-term lease liabilities, included in debt — Total finance lease liabilities $ 35 Weighted average remaining lease term: Operating leases 7.1 years Finance leases 20.4 years Supplemental cash flow information related to leases are as follows: For the year ended December 31, In thousands 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 6,301 Operating cash flows from finance leases 2 Financing cash flows from finance leases 240 Right-of-use assets obtained in exchange for lease obligations: Operating leases 1,743 Finance leases — As of December 31, 2019 , future lease payments maturities were as follows: In thousands Years Ending December 31, Operating Leases Finance Leases 2020 $ 5,680 $ 36 2021 4,329 — 2022 3,555 — 2023 2,659 — 2024 1,848 — Thereafter 9,465 — Total lease payments 27,536 36 Less imputed interest (4,323 ) (1 ) Total discounted future lease payments $ 23,213 $ 35 As of December 31, 2018 , future lease payment maturities were as follows: In thousands Years Ending December 31, Operating Leases Finance Leases 2019 $ 6,004 $ 279 2020 4,871 35 2021 3,877 — 2022 3,226 — 2023 2,617 — Thereafter 11,111 — Total lease payments $ 31,706 $ 314 |
Leases | Leases From time to time, the Company enters into arrangements with vendors to provide certain tangible assets used in the Company's operations which qualify as a lease pursuant to ASC 842, Leases . The tangible assets leased include buildings, office equipment, machinery and vehicles. The Company's leases have remaining terms of a few months to 14 years , some of which have options to extend for a period of up to 7 years and some of which have options to terminate within 1 year . At inception of the arrangement, the Company determines if an arrangement is a lease based on assessment of the terms and conditions of the contract. Operating leases are included in Operating lease right-of-use (“ROU”) assets, other accrued liabilities, and Long-term operating lease liabilities in the Company's condensed consolidated balance sheets. Finance leases are included in property, plant and equipment, Current portion of long-term debt, and long-term debt in the Company's condensed consolidated balance sheets. ROU assets represent the Company's right to use an underlying asset for the lease term and lease liabilities represent the Company's obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. While the overwhelming majority of leases have fixed payments schedules, some leases have variable lease schedules based on market indices such as LIBOR or include additional payments based on excess consumption of services. For leases on a variable schedule based on a market index, the current lease payment amount is used in the calculation of the lease liability and corresponding asset included on the balance sheet. For leases with additional payments based on excess consumption of services, no amount is included in the calculation of the lease liability or corresponding asset as it is not probable excess consumption will continue in the future. As most leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. At December 31, 2019 , the weighted average discount rate used for operating and finance leases is 4.39% and 1.61% , respectively. The implicit rate is used when readily determinable from a lease. The operating lease ROU asset also includes any lease payments made in advance of the assets use and excludes lease incentives received. The Company's lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. The Company has lease agreements with lease and non-lease components, which are generally accounted for as one component as permitted by ASC 842. After consideration of any options to terminate early which are reasonably certain to be executed or any options to extend which are not reasonably certain to be executed, any lease with a term of 12 months or less is considered short-term. As permitted by ASC 842, short-term leases are excluded from the ROU Asset and Lease Liability accounts on the condensed consolidated balance sheets. Consistent with all other operating leases, short-term lease expense is recorded on a straight-line basis over the lease term. The components of lease expense are as follows: In thousands For the year ended December 31, 2019 Finance lease expense: Amortization of right-of-use assets $ 81 Interest on lease liabilities 2 Operating lease expense 6,510 Short-term lease expense 918 Variable lease expense 199 Total lease expense $ 7,710 Supplemental balance sheet information related to leases are as follows: In thousands, except lease term December 31, 2019 Operating leases: Operating lease right-of-use assets $ 23,116 Short-term lease liabilities, included in "Other accrued liabilities" $ 4,789 Long-term lease liabilities 18,424 Total operating lease liabilities $ 23,213 Finance leases: Property, plant and equipment $ 456 Accumulated depreciation (143 ) Property, plant and equipment, net $ 313 Short-term lease liabilities, included in debt $ 35 Long-term lease liabilities, included in debt — Total finance lease liabilities $ 35 Weighted average remaining lease term: Operating leases 7.1 years Finance leases 20.4 years Supplemental cash flow information related to leases are as follows: For the year ended December 31, In thousands 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 6,301 Operating cash flows from finance leases 2 Financing cash flows from finance leases 240 Right-of-use assets obtained in exchange for lease obligations: Operating leases 1,743 Finance leases — As of December 31, 2019 , future lease payments maturities were as follows: In thousands Years Ending December 31, Operating Leases Finance Leases 2020 $ 5,680 $ 36 2021 4,329 — 2022 3,555 — 2023 2,659 — 2024 1,848 — Thereafter 9,465 — Total lease payments 27,536 36 Less imputed interest (4,323 ) (1 ) Total discounted future lease payments $ 23,213 $ 35 As of December 31, 2018 , future lease payment maturities were as follows: In thousands Years Ending December 31, Operating Leases Finance Leases 2019 $ 6,004 $ 279 2020 4,871 35 2021 3,877 — 2022 3,226 — 2023 2,617 — Thereafter 11,111 — Total lease payments $ 31,706 $ 314 |
Capital Stock
Capital Stock | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Capital Stock | Capital Stock Preferred Stock — The Company has authorized Preferred Stock with a par value of $0.01 . None of the 500,000 authorized shares have been issued. Common Stock — As of December 31, 2019 , 5,422 Lydall stockholders of record held 17,622,191 shares of Common Stock. Dividend policy — The Company does not pay a cash dividend on its common stock. The Company’s Amended Credit Agreement does not place any restrictions on cash dividend payments, so long as the payments do not place the Company in default. |
Employer Sponsored Benefit Plan
Employer Sponsored Benefit Plans | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
Employer Sponsored Benefit Plans | Employer Sponsored Benefit Plans During 2019, the Company maintained a domestic defined benefit pension plan ("U.S. Lydall Pension Plan") and two domestic defined benefit pension plans acquired in the Interface acquisition: the Retirement Income Plan for Employees of Interface Performance Materials, Inc. ("IPM Pension Plan"), and the Interface Sealing Solutions, Inc. Pension Plan ("ISS Pension Plan"), collectively, the "Interface Pension Plans." During 2019, the Company settled the pension obligation of the U.S. Lydall Pension Plan through lump sum distributions to participants or by irrevocably transferring pension liabilities to two insurance companies through the purchase of group annuity contracts. These purchases, funded with pension assets, resulted in a pre-tax settlement loss of $25.7 million in 2019 related to the recognition of accumulated deferred actuarial losses U.S. Lydall Pension Plan as well as settlement-related fees and expenses. The settlement loss was included as non-operating expense in the consolidated statements of operations. No contributions were made to the U.S. Lydall Pension Plan during the year ended December 31, 2019 . The Interface Pension Plans cover Interface's union and non-union employees. The plans are closed to new employees and benefits are no longer accruing for the majority of participants. Contributions of $1.4 million were made to the plans during the year ended December 31, 2019 . During the fourth quarter of 2019, the Company terminated the ISS Pension Plan. The Company anticipates completing the settlement of this plan in the first half of 2020. At December 31, 2019 , the benefit obligations of the ISS Pension Plan have been valued at the amount expected to be required to settle the obligations through a combination of participant-elected lump sums or annuities, and the cost to purchase those annuities. Overall, the Company estimates it will incur expense of approximately $0.4 million to $0.6 million in 2020 when the plan settlement is completed. The Company is expected to make a one-time cash contribution of approximately $0.7 million to $0.9 million to purchase annuities for participants and make lump sum payments. The estimated expense and cash contribution are subject to change based on valuations at the actual date of settlement. During 2019 and 2018, certain union employees of Interface participated in a separate multi-employer pension plan. There were no significant contributions to the multi-employer plan during 2019 and 2018. In the fourth quarter of 2019, the Company negotiated with its union employees and the multi-employer pension plan the withdrawal from the plan and satisfied all outstanding obligations with a payment of $2.2 million , which was previously accrued on the Company's consolidated balance sheet at $2.7 million , resulting in a pension settlement gain of $0.5 million in 2019. The Company’s funding policy for the Interface Pension Plans is to fund not less than the ERISA minimum funding standard and not more than the maximum amount that can be deducted for federal income tax purposes. Plan assets and benefit obligations of the former U.S. Lydall Pension Plan and the Interface Pension Plans were as follows: December 31, In thousands 2019 2018 Change in benefit obligation: Net benefit obligation at beginning of year $ 102,679 $ 51,882 Benefit obligation assumed through acquisition — 52,392 Service Cost 136 46 Interest cost 2,132 2,595 Actuarial loss/(gain) 5,149 (876 ) Gross benefits paid (2,932 ) (3,360 ) Net effect of remeasurement (3,290 ) — Settlement (48,773 ) — Net benefit obligation at end of year $ 55,101 $ 102,679 Change in plan assets: Fair value of plan assets at beginning of year $ 87,452 $ 44,174 Fair value of plan assets through acquisition — 43,230 Actual return/(loss) on plan assets 6,987 (4,092 ) Contributions 1,415 7,500 Gross benefits paid (2,932 ) (3,360 ) Net effect of remeasurement (211 ) — Settlement (48,773 ) — Fair value of plan assets at end of year $ 43,938 $ 87,452 Net benefit obligation in excess of plan assets $ (11,163 ) $ (15,227 ) Balance sheet amounts: Current liabilities $ (787 ) $ (3,078 ) Noncurrent liabilities $ (10,376 ) $ (12,149 ) Total liabilities $ (11,163 ) $ (15,227 ) Amounts recognized in accumulated other comprehensive income, net of tax consist of: Net actuarial loss $ 2,579 $ 21,850 Net amount recognized $ 2,579 $ 21,850 At December 31, 2019 , in addition to the accrued benefit liability of $11.2 million recognized for the Company’s domestic defined benefit pension plans, the Company had foreign pension plans, including those acquired in the Interface acquisition, with an accrued benefit liability of $5.2 million and accumulated other comprehensive loss, net of tax, of $0.9 million . At December 31, 2018 , in addition to the accrued benefit liability of $15.2 million recognized for the Company’s domestic defined benefit pension plan, the Company had foreign pension plans, including those acquired in the Interface acquisition, with an accrued benefit liability of $4.7 million and accumulated other comprehensive loss, net of tax, of $0.4 million . In addition to the Domestic Pension Plans included in the table above, the Interface domestic post-retirement benefits include life insurance and medical benefits for certain domestic employees with an accrued benefit liability of $3.6 million at December 31, 2019 and $4.1 million at December 31, 2018 . For the year ended December 31, 2019 , benefit expense of approximately $0.1 million was recognized and benefit payments of $0.2 million were made. From the August 31, 2018 acquisition to December 31, 2018, benefit expense of $0.1 million was recognized and benefit payments of $0.1 million were made. The U.S. Lydall Pension Plan liability, net of tax, included in other comprehensive income decreased by $19.4 million as a result of the settlement. The Interface Pension Plans' liability, net of tax, included in other comprehensive income increased by $0.3 million at December 31, 2019 . The U.S. Lydall Pension Plan liability, net of tax, included in other comprehensive income increased by $1.8 million for the year ended December 31, 2018 . The Interface Pension Plans liability, net of tax, included in other comprehensive income increased by $1.8 million at December 31, 2018. Aggregated information for the domestic defined benefit pension plans with an accumulated benefit obligation in excess of plan assets is provided in the tables below: December 31, In thousands 2019 2018 Projected benefit obligation $ 55,101 $ 102,679 Accumulated benefit obligation $ 55,101 $ 104,188 Fair value of plan assets $ 43,938 $ 87,452 Components of net periodic benefit cost for the domestic defined benefit pension plans: December 31, In thousands 2019 2018 2017 Service cost $ 136 $ 46 $ — Interest cost 2,886 2,595 2,058 Expected return on plan assets (2,601 ) (3,339 ) (2,376 ) Amortization of actuarial net loss 464 1,024 1,092 Total net periodic benefit cost $ 885 $ 326 $ 774 Settlement loss 25,247 $ — $ — Total employer pension plan cost $ 26,132 $ 326 $ 774 The Company reports the service cost component of net periodic benefit cost in the same line item as other compensation costs in operating expenses and the non-service cost components of net periodic benefit cost in other income and expense. The major assumptions used in determining the year-end benefit obligation and annual net cost for the domestic defined benefit pension plans are presented in the following table: Benefit Obligation Net Cost For the years ended December 31, 2019 2018 2019 2018 2017 Discount rate 3.37 % 3.99 % 3.88 % 3.75 % 4.21 % Expected return on plan assets 5.06 % 4.08 % 4.65 % 5.79 % 6.30 % Plan Assets The domestic defined benefit pension plans are administered by the Lydall Retirement Committee (the "Committee"), which is appointed by the Board of Directors. The Committee’s responsibilities are to establish a funding policy for the Domestic Pension Plans and to appoint and oversee the investment advisor responsible for the plan investments. The Committee is a named fiduciary under the plan, and the Committee has granted discretion to the investment advisor with respect to management of the investments. The Interface Pension Plans are invested for the purpose of investment diversification. In determining the expected return on plan assets, the Committee considers the relative weighting of plan assets, the historical performance of marketable debt and equity securities and economic and other indicators of future performance. Investment management objectives for the Interface Pension Plans include maintaining an adequate level of diversification to balance market risk and to provide sufficient liquidity for near-term payments of benefits accrued under the Plans and to pay the expenses of administration. Investment decisions are based on the returns and risk relative to the Plan's liabilities, an approach commonly referred to as liability-driven investing. The long-term investment objective of the Interface Pension Plan is to achieve a total return equal to or greater than the assumed weighted rate of return, currently 5.20% . Though it is the intent of the Committee to achieve income and growth, that intent does not include taking extraordinary risks or engaging in investment activities not commonly considered prudent under the standards imposed by ERISA. The allowable investments include: securities, mutual funds, sub-advisers, independent investment managers and/or programs, and cash or cash equivalents. Prohibited investments include: single strategy hedge funds, investment in individual securities, direct investment in venture capital, and CMO derivatives and commodities. The following table presents the target allocation of the IPM Pension Plan assets for 2020 and the actual allocation of all domestic defined benefit pension plan assets as of December 31, 2019 and 2018 by major asset category: Target Allocation Actual Allocation of Plan Assets Asset Category 2020 (1) 2019 2018 (2) Domestic equities 20% - 40% 38 % 16 % International equities 15% - 35% 25 % 11 % Fixed income 20%-45% 18 % 49 % Real assets 0% - 10% 7 % 3 % Hedge fund of funds 5% - 15% 9 % 5 % Cash and cash equivalents 0% - 10% 3 % 16 % (1) Target allocation percentages reflect the IPM Pension Plan only, as the terminated ISS Pension Plan assets, which comprise 5% of the total domestic defined benefit pension balances at December 31, 2019, has an investment target of primarily fixed income investments in anticipation of 2020 settlement. (2) Plan Assets as of December 31, 2018 included values associated with the U.S. Lydall Plan, which was settled during 2019. The investments of the domestic defined benefit plans are stated at fair value. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The asset’s fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs. The framework for measuring fair value provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The fixed income long duration fund and certain hedge funds that were measured at fair value using the NAV practical expedient are included as a reconciling item to the fair value table. The following tables set forth the fair value of the assets by major asset category as of December 31, 2019 and December 31, 2018 : December 31, 2019 In thousands Level 1 Level 2 Level 3 Measured at NAV Total Domestic equity $ 16,729 $ — $ — $ — $ 16,729 International equity 10,903 — — — 10,903 Fixed income 3,724 — — — 3,724 U.S. government securities — 2,686 — — 2,686 Corporate and foreign bonds — 1,701 — — 1,701 Real assets 3,010 — — — 3,010 Hedge fund of funds 4,009 — — — 4,009 Cash and cash equivalents 145 1,031 — — 1,176 Total Assets at Fair Value $ 38,520 $ 5,418 $ — $ — $ 43,938 December 31, 2018 In thousands Level 1 Level 2 Level 3 Measured at NAV Total Domestic equity $ 13,941 $ — $ — $ — $ 13,941 International equity 9,547 — — — 9,547 Fixed income 10,977 — — 27,727 38,704 U.S. government securities — 2,466 — — 2,466 Corporate and foreign bonds — 1,448 — — 1,448 Real assets 2,808 — — — 2,808 Hedge fund of funds 4,129 — — 312 4,441 Cash and cash equivalents 12,027 2,070 — — 14,097 Total Assets at Fair Value $ 53,429 $ 5,984 $ — $ 28,039 $ 87,452 Domestic and international equities consist primarily of mutual funds valued at the closing price reported in the active market in which individual securities are traded. Fixed income consisted of mutual funds valued using quoted market prices and a long duration f ixed income held in proprietary funds pooled with other investor accounts which sometimes uses the net asset value (NAV) per share practical expedient to measure fair value. Real assets includes inflation hedge mutual funds that invest primarily in a portfolio of inflation-protected debt securities, real-estate related securities and commodity/natural resource-related securities. The mutual fund, which is valued using quoted market prices, is designed to protect against the long-term effects of inflation on an investment portfolio with the long-term objective of preservation of capital with current income. U.S. government securities include U.S. Treasury Notes and Bonds which represent middle range and long term fixed income investments, and are valued using pricing models maximizing the use of observable inputs for similar securities. Corporate and foreign bonds primarily include a diversified portfolio of U.S. corporate debt obligations, and are valued using pricing models maximizing the use of observable inputs for similar securities. This includes basing value on yields currently available on comparable securities of issuers with similar credit ratings. When quoted prices are not available for identical or similar bonds, the bond is valued under a discounted cash flows approach that maximizes observable inputs, such as current yields of similar instruments, but includes adjustments for certain risks that may not be observable, such as credit and liquidity risks or a broker quote if available. Hedge funds are mutual funds and pooled funds that employ a range of investment strategies for diversification including equity and fixed income, credit driven, macro and multi oriented strategies. Certain hedge funds were measured at fair value using the NAV practical expedient and are not classified in the fair value hierar chy. Cash and cash equivalents include investments readily converted to cash valued in the active market in which the funds were traded and are classified within Level 1 of the fair value hierarchy. Non-government money market funds are classified as Level 2. Estimated Future Contributions and Benefit Payments The Company expects to contribute approximately $2.4 million in cash to its domestic defined employee benefit plans in 2020 . Estimated future benefit payments for the next 10 years for the Interface Pension Plans are as follows: In thousands 2020 2021 2022 2023 2024 2025-2028 Benefit payments $ 5,903 $ 3,026 $ 3,065 $ 3,082 $ 3,138 $ 15,957 Employee Savings Plan The Company also sponsors a 401(k) Plan. Employer contributions to this plan amounted to $3.7 million in 2019 , $2.9 million in 2018 , and $2.6 million in 2017 . Matching contributions by the Company are made on employee pretax contributions up to five percent of compensation, with the first three percent matched at 100% and the next two percent matched at 50% |
Equity Compensation Plans
Equity Compensation Plans | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Equity Compensation Plans | Equity Compensation Plans As of December 31, 2019 , the Company’s equity compensation plans consisted of the 2003 Stock Incentive Compensation Plan (the “2003 Plan”) and the 2012 Stock Incentive Plan (the “2012 Plan” and together with the 2003 Plan, the “Plans”) under which incentive and non-qualified stock options and time and performance based restricted shares have been granted to employees and directors from authorized but unissued shares of common stock or treasury shares. The 2003 Plan is not active, but continues to govern all outstanding awards granted under the plan until the awards themselves are exercised or terminate in accordance with their terms. The 2012 Plan, approved by stockholders on April 27, 2012, authorized 1,750,000 shares of common stock for awards. The 2012 Plan also authorizes an additional 1,200,000 shares of common stock to the extent awards granted under prior stock plans that were outstanding as of April 27, 2012 are forfeited. The 2012 Plan provides for the following type of awards: options, restricted stock, restricted stock units and other stock-based awards. During the fourth quarter of 2019, additional shares of common stock were issued pursuant to separate inducement share agreements with two individuals as material inducement to their employment with the Company (the "Inducement Grants"). The Inducement Grants awarded stock options and restricted stock to the two individuals. Amounts shown below are inclusive of the Plans and the Inducement Grants. The Company accounts for the expense of all share-based compensation by measuring the awards at fair value on the date of grant. The Company recognizes expense on a straight-line basis over the vesting period of the entire award. Options issued by the Company under its stock option plans have a term of ten years and generally vest ratably over a period of three to four years. Time-based restricted stock grants are expensed over the vesting period of the award, which is typically two to four years. The number of performance based restricted shares that vest or forfeit depend upon achievement of certain targets during the performance period. The Company accounts for forfeitures as they occur. Compensation expense for performance based awards granted prior to December 2018 is recorded based upon the service period and management’s assessment of the pr obability of achieving the performance goals and will be adjusted based upon actual achievement. In December 2018, the performance metric changed to a 3-year relative Total Shareholder Return (TSR) compared to S&P 600 industrial index instead of a pre-established earning-per-share target to better align compensation to the long-term interest of shareholders. Stock options iss ued under the current plan must have an exercise price that may not be less than the fair market value of the Company’s common stock on the date of grant. The Plans provide for automatic acceleration of vesting in the event of a change in control of the Company. The Company incurred compensation expense of $2.9 million , $2.1 million , and $4.3 million for the y ears ended December 31, 2019 , 2018 , and 2017 , respectively, for all stock-based compensation plans, including restricted stock awards. No compensation costs were capitalized as part of inventory. The associated tax benefit realized was $0.2 million , $1.3 million , and $4.0 million for the years ended December 31, 2019 , 2018 , and 2017 , respectively. Stock Options The fair value of each option granted was estimated on the date of grant using the Black-Scholes option-pricing model with the following weighted-average assumptions for the years ended December 31: 2019 2018 2017 Risk-free interest rate 1.7 % 2.7 % 2.2 % Expected life 5.3 years 5.5 years 5.5 years Expected volatility 37 % 34 % 33 % Expected dividend yield — % — % — % The following is a summary of the option activity as of December 31, 2019 and changes during the year then ended: In thousands except per share amounts and years Shares Weighted-Average Exercise Price Weighted- Average Remaining Contractual Term (years) Aggregate Intrinsic Value Outstanding at December 31, 2018 623 $ 30.14 Granted 242 $ 19.35 Exercised (40) $ 11.47 Forfeited/Cancelled (142) $ 31.36 Outstanding at December 31, 2019 683 $ 27.15 7.9 $ 688 Options exercisable at December 31, 2019 318 $ 33.01 6.1 $ 372 Unvested at December 31, 2019 365 $ 22.04 3.0 $ 316 The Company granted 242,592 , 245,830 , and 99,840 stock options during 2019 , 2018 , and 2017 , respectively. The weighted-average grant-date fair value of options granted during the years 2019 , 2018 , and 2017 was $19.35 , $21.49 , and $17.91 , respectively. There were 40,147 options exercised in 2019 , 54,316 options exercised in 2018 , and 90,897 options exercised in 2017 . The intrinsic value for options exercised during 2019 was $0.4 million and the associated tax benefit realized from stock options exercised was $0.1 million . The total intrinsic value for options exercised during 2018 was $1.4 million and the associated tax benefit realized from stock options exercised was $0.3 million . The total intrinsic value for options exercised during 2017 was $3.6 million and the associated tax benefit realized from stock options exercised was $1.1 million . The amount of cash received from the exercise of stock options was $0.4 million in 2019 , $0.9 million in 2018 , and $1.3 million in 2017 . At December 31, 2019 , the total unrecognized compensation cost related to non-vested stock option awards was approximately $2.7 million , with a weighted average expected amortization period of 3.0 years. Restricted Stock The following is a summary of the Company’s unvested restricted shares for the year ended and as of December 31, 2019 : In thousands except per share amounts Outstanding Restricted Shares Shares Weighted-Average Grant-Date Fair Value Nonvested at December 31, 2018 304 $ 37.02 Granted 157 $ 20.96 Vested (23) $ 56.45 Forfeited/Cancelled (150) $ 38.07 Nonvested at December 31, 2019 288 $ 26.13 Restricted stock includes both performance-based and time-based awards. Compensation for restricted stock is recorded based on the fair market value of the stock on the grant date and amortized to expense over the vesting period of the award. The Company granted 59,566 , 99,560 , and 52,595 shares of performance-based restricted stock during 2019 , 2018 , and 2017 , respectively. The Company granted 97,803 shares of time-based restricted stock in 2019 , 71,516 shares in 2018 , and 22,700 in 2017 . The Company granted 1,245 , and 485 of time-based restricted stock units in 2018 and 2017 , respectively. The weighted average fair value per share of restricted stock granted was $20.96 , $25.19 , and $45.18 during 2019 , 2018 , and 2017 , respectively. During 2019 , 2018 , and 2017 , respectively, there were 150,365 , 8,440 and 14,045 shares of restricted stock forfeited. The fair value of awards for which restrictions lapsed during the years ended December 31, 2019 , 2018 , and 2017 was $0.5 million , $3.2 million , and $8.0 million , respectively. At December 31, 2019 , the total unrecognized compensation cost related to non-vested restricted stock awards was approximately $4.5 million , with a weighted average expected amortization period of 2.4 years . Stock Repurchases During the year ended December 31, 2019 , the Company acquired 7,122 shares of common stock valued at $0.2 million , through withholding, pursuant to provisions in agreements with recipients of restricted stock granted under the Company's equity compensation plans, which provide for the Company to withhold the number of shares having fair value equal to each recipient's tax withholding due. |
Restructuring
Restructuring | 12 Months Ended |
Dec. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | Restructuring In April 2017, the Company commenced a restructuring plan in the Technical Nonwovens segment which includes plant consolidations and transfer of equipment to other facilities within the segment's Europe and China operations. The consolidation of certain plants, which concluded in the fourth quarter of 2019, is expected to reduce operating costs, increase efficiency and enhance the Company’s flexibility by better aligning its manufacturing footprint with the segment's customer base. The Company recorded expenses of $3.7 million in connection with this restructuring plan, of which approximately $3.3 million resulted in cash expenditures over the period of consolidation. The Company also incurred cash expenditures of approximately $3.8 million for capital expenditures associated with this plan. During the year ended December 31, 2019, the Company recorded pre-tax restructuring expenses of $0.8 million as part of this restructuring plan. Restructuring expenses of $0.6 million were recorded in cost of sales and $0.2 million were recorded in selling, product development and administrative expenses. During the year ended December 31, 2018, the Company recorded pre-tax restructuring expenses of $2.3 million as part of this restructuring plan. Restructuring expenses of $1.9 million were recorded in cost of sales and $0.4 million were recorded in selling, product development and administrative expenses. Actual pre-tax expenses incurred for the restructuring program by type are as follows: In thousands Severance and Related Expenses Contract Termination Expenses Facility Exit, Move and Set-up Expenses Total Expenses incurred during year ended: December 31, 2017 $ 181 $ 154 $ 327 $ 662 December 31, 2018 606 136 1,555 2,297 December 31, 2019 145 — 622 767 Total expenses $ 932 $ 290 $ 2,504 $ 3,726 There were cash outflows of $0.8 million and $2.2 million for the restructuring program for the years ended December 31, 2019 and 2018, respectively. Accrued restructuring costs were as follows at December 31, 2019 : In thousands Total December 31, 2017 $ 333 Pre-tax restructuring expenses, excluding depreciation $ 2,012 Cash paid (2,198 ) December 31, 2018 $ 147 Pre-tax restructuring expenses, excluding depreciation $ 767 Cash paid (806 ) December 31, 2019 $ 108 |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The Company’s reportable segments as of December 31, 2019 were Performance Materials, Technical Nonwovens, Thermal Acoustical Solutions. Performance Materials Segment The Performance Materials segment includes filtration media solutions primarily for air, fluid power, life science and industrial applications (“Filtration”), and sealing and gasket solutions, thermal insulation, energy storage, and other engineered products (“Sealing and Advanced Solutions”). Filtration products include LydAir® MG (Micro-Glass) Air Filtration Media, LydAir® MB (Melt Blown) Air Filtration Media, LydAir® SC (Synthetic Composite) Air Filtration Media, and Arioso® Membrane Composite Media. These products constitute the critical media component of clean-air systems for applications in clean-space, commercial, industrial and residential HVAC, power generation, respiratory protection, and industrial processes. Lydall has leveraged its extensive technical expertise and applications knowledge into a suite of media products covering the vast liquid filtration landscape across the transportation and industrial fields. The LyPore® Liquid Filtration Media series address a variety of application needs in fluid power including hydraulic filters, air-water and air-oil coalescing, industrial fluid processes and diesel fuel filtration. LyPore® media and Solupor® ultra-high molecular weight polyethylene membranes also serve critical liquid filtration/separation applications such as biopharmaceutical pre-filtration and clarification, lateral flow diagnostic and analytical testing, potable water filtration and high purity process filtration such as those found in food and beverage and medical applications. Sealing and Advanced Solutions products include nonwoven specialty engineered materials for a multitude of applications. Interface fiber-reinforced gasket materials serve the heavy-duty diesel, automobile, small engine, transmission and compressor markets. These products handle demanding sealing challenges with a diverse range of metallic, non-metallic, rubber-coated and laminate materials that comprise the extensive Sealing materials portfolio. Interface Engineered Components are ready to use soft and hard gasket parts sold directly to OEMs and aftermarket applications. An example is Select-a-Seal® rubber-edged composite (REC) technology that provides robust sealing, compression, adhesion, and shear strength for driveline applications. Advanced Solutions’ nonwoven veils, papers and specialty composites for the building products, appliance, energy and industrial markets include Manniglas® Thermal Insulation Papers, and Lytherm® Insulation Media for high temperature technology applications. Lydall’s Cryotherm® Super-Insulating Media, CRS-Wrap® Super-Insulating Media and Cryo-Lite® Cryogenic Insulation products are industry standards for state-of-the-art cryogenic insulation designs used by manufacturers of cryogenic equipment for liquid gas storage, piping, and transportation. Additional specialty composite materials include specialty fiber calendar bowl products to service the printing and textile industries and press pad materials for industrial lamination processes. Technical Nonwovens Segment The Technical Nonwovens segment primarily produces needle punch nonwoven solutions for a multitude of industries and applications. Products are manufactured and sold globally under the leading brands of Lydall Industrial Filtration, Southern Felt, Gutsche, and Texel. Industrial Filtration products include nonwoven rolled-good felt media and filter bags used primarily in industrial air and liquid filtration applications. Nonwoven filter media is an effective solution to satisfy increasing emission control regulations in a wide range of industries, including power, cement, steel, asphalt, incineration, mining, food, and pharmaceutical. Advanced Materials products include nonwoven rolled-good media used in commercial applications and predominantly serves the geosynthetics, automotive, industrial, medical, and safety apparel markets. Automotive media is provided to Tier I/II suppliers as well as the Company's Thermal Acoustical Solutions segment. Technical Nonwovens segment products include air and liquid filtration media sold under the brand names Fiberlox® high performance filtration felts, Checkstatic™ conductive filtration felts, Microfelt® high efficiency filtration felts, Pleatlox® pleatable filtration felts, Ultratech™ PTFE filtration felts, Powertech® and Powerlox® power generation filtration felts, Microcap® high efficiency liquid filtration felts, Duotech membrane composite filtration felts, along with our porotex® family of high temperature filtration felts including microvel® and optivel® products. Technical Nonwovens Advanced Materials products are sold under the brand names Thermofit® thermo-formable products, Ecoduo® recycled content materials, Duotex® floor protection products, and Versaflex® composite molding materials. Technical Nonwovens also offers extensive finishing and coating capabilities which provide custom engineered properties tailored to meet the most demanding applications. The business leverages a wide range of fiber types and extensive technical capabilities to provide products that meet our customers’ needs across a variety of applications providing both high performance and durability. Thermal Acoustical Solutions Segment The Thermal Acoustical Solutions segment offers a full range of innovative engineered products tailored for the transportation and industrial sectors to thermally shield sensitive components from high heat, improve exhaust gas treatment and lower harmful emissions as well as assist in the reduction of noise, vibration and harshness (NVH). Within the transportation sector, Lydall’s products are found in the interior (dash insulators, cabin flooring), underbody (wheel well, aerodynamic belly pan, fuel tank, exhaust, tunnel, spare tire) and under hood (engine compartment, outer dash, powertrain, catalytic converter, turbo charger, manifolds) of cars, trucks, SUVs, heavy duty trucks and recreational vehicles. Thermal Acoustical Solutions segment products offer thermal and acoustical insulating solutions comprised of organic and inorganic fiber composites that provide weight reduction, superior noise suppression and increased durability over conventional designs, as well as products that efficiently combine multiple layers of metal and thermal - acoustical insulation media to provide an engineered shielding solution for an array of application areas. Lydall’s dBCore® is a lightweight acoustical composite that emphasizes absorption principles over heavy-mass type systems. Lydall’s dBLyte® is a high-performance acoustical barrier with sound absorption and blocking properties and can be used throughout a vehicle’s interior to minimize intrusive noise from an engine compartment and road. Lydall’s ZeroClearance® is an innovative thermal solution that utilizes an adhesive backing for attachment and is used to protect vehicle components from excessive heat. Lydall’s flux® product family includes several patented or IP-rich products that address applications which include: Direct Exhaust Mount heat shields, which are assembled to high temperature components like catalytic converters, turbochargers or exhaust manifolds using aluminized and stainless steel and high performance and high temperature heat insulating materials; Powertrain heat shields that absorb noise at the source and do not contribute to the engine's noise budget; and durable, thermally robust solutions for temperature sensitive plastic components such as fuel tanks that are in proximity to high temperature heat sources. Net sales by segment, as well as reconciling items, to equal consolidated net sales for the years ended December 31, 2019 , 2018 , and 2017 were as follows: Consolidated Net Sales For the Years Ended December 31, In thousands 2019 2018 2017 Performance Materials Segment (1): Filtration $ 93,314 $ 93,089 $ 87,173 Sealing and Advanced Solutions 152,166 76,128 29,496 Performance Materials Segment net sales 245,480 169,217 116,669 Technical Nonwovens Segment (2): Industrial Filtration 144,320 157,606 147,087 Advanced Materials (3) 111,026 119,465 121,990 Technical Nonwovens net sales 255,346 277,071 269,077 Thermal Acoustical Solutions Segment: Parts 326,436 328,057 318,217 Tooling 35,141 37,370 23,888 Thermal Acoustical Solutions Segment net sales 361,577 365,427 342,105 Eliminations and Other (3) (25,005 ) (25,818 ) (29,414 ) Consolidated Net Sales $ 837,398 $ 785,897 $ 698,437 Operating income by segment and Corporate Office Expenses for the years ended December 31, 2019 , 2018 , and 2017 were as follows: Operating Income For the Years Ended December 31, In thousands 2019 2018 2017 Performance Materials Segment (1) $ (59,804 ) $ 13,139 $ 12,321 Technical Nonwovens Segment (2) 22,895 21,323 26,047 Thermal Acoustical Solutions Segment 23,590 38,085 53,132 Corporate Office Expenses (25,506 ) (23,359 ) (25,300 ) Consolidated Operating Income $ (38,825 ) $ 49,188 $ 66,200 Operating results in 2019 were negatively impacted by $64.2 million related to the impairment of goodwill and other long-lived assets in the Performance Materials segment, $12.2 million of incremental intangible assets amortization, $2.3 million of CEO transition expenses within Corporate Office Expenses, $1.9 million of reduction-in-force severance expenses across all segments, $1.5 million of corporate strategic initiatives expenses within Corporate Office Expenses, and $0.8 million of restructuring expenses in the Technical Nonwovens segment. Operating results in 2018 were negatively impacted by $3.6 million of corporate strategic initiatives expenses predominantly within Corporate Office Expenses, $2.3 million of restructuring expenses in the Technical Nonwovens segment, and a $2.0 million purchase accounting adjustment related to inventory step-up in the Performance Materials segment. Operating results in 2017 were negatively impacted by $1.7 million of expenses associated with the combination of the Company's former T/A Metals and T/A Fibers segments, a $1.1 million purchase accounting adjustment related to inventory step-up in the Technical Nonwovens segment, $0.7 million and $0.3 million related to severance expenses for a reduction in force in the Thermal Acoustical Solutions and Technical Nonwovens segments, respectively, $0.8 million of corporate strategic initiatives expenses predominantly within Corporate Office Expenses, a $0.8 million non-cash long-lived asset impairment in the Performance Materials segments and $0.7 million of restructuring expenses in the Technical Nonwovens segment. Total assets by segment and the Corporate Office were as follows at December 31, 2019 , 2018 , and 2017 : Total Assets December 31, In thousands 2019 2018 2017 Performance Materials Segment (1) $ 325,164 $ 414,211 $ 72,837 Technical Nonwovens Segment (2) 242,787 242,007 271,713 Thermal Acoustical Solutions Segment 199,218 201,509 189,301 Corporate Office 18,768 14,959 27,020 Total Assets $ 785,937 $ 872,686 $ 560,871 The significant reduction in total assets in the Performance Materials segment was driven by $64.2 million of goodwill and other long lived asset impairment charges in the fourth quarter of 2019. Total capital expenditures and depreciation and amortization by segment and the Corporate Office for the years ended December 31, 2019 , 2018 , and 2017 were as follows: Capital Expenditures Depreciation and Amortization In thousands 2019 2018 2017 2019 2018 2017 Performance Materials Segment (1) $ 8,914 $ 11,288 $ 3,610 $ 25,118 $ 9,006 $ 3,996 Technical Nonwovens Segment (2) 9,345 5,864 2,903 12,702 13,877 12,625 Thermal Acoustical Solutions Segment 17,858 11,934 17,462 10,168 9,190 8,619 Corporate Office 316 544 940 635 658 699 Total $ 36,433 $ 29,630 $ 24,915 $ 48,623 $ 32,731 $ 25,939 Net sales by geographic area for the years ended December 31, 2019 , 2018 and 2017 and long-lived asset information by geographic area as of December 31, 2019 , 2018 , and 2017 were as follows: Net Sales Long-Lived Assets In thousands 2019 2018 2017 2019 (4) 2018 2017 United States (1) $ 478,720 $ 422,222 $ 376,086 $ 138,265 $ 136,448 $ 93,583 France (1) 75,313 66,579 56,214 13,723 13,219 14,268 Germany (1) 124,402 125,796 105,828 44,116 25,873 20,872 United Kingdom 26,556 27,156 24,921 5,981 4,844 4,916 Canada (2) 76,535 87,622 84,701 29,667 25,614 30,739 China (1) 54,036 54,198 47,856 17,888 11,958 11,896 Other (1) 1,836 2,324 2,831 3,211 4,085 1,590 Total $ 837,398 $ 785,897 $ 698,437 $ 252,851 $ 222,041 $ 177,864 (1) The Performance Materials segment includes the results of Interface and PCC for the periods following the dates of acquisitions of August 31, 2018 and July 12, 2018, respectively. (2) The Technical Nonwovens segment includes results of Geosol through the date of disposition of May 9, 2019. (3) Included in the Technical Nonwovens segment and Eliminations and Other is $21.0 million , $22.2 million and $26.5 million of intercompany sales to the Thermal Acoustical Solutions segment for the years ended December 31, 2019 , 2018 and 2017 , respectively. (4) Effective January 1, 2019, the Company adopted ASU 2016-02, "Leases (Topic 842)", requiring the Company to recognize right-of-use assets totaling $23.1 million at December 31, 2019. Foreign sales are based on the country in which the sales originated (i.e., where the Company’s legal entity is domiciled). Sales to Ford Motor Company in 2019 , 2018 , and 2017 were $99.1 million , $116.1 million , and $120.7 million , respectively, and accounted for 11.8% , 14.8% , and 17.3% of Lydall’s consolidated net sales in the years ended December 31, 2019 , 2018 , and 2017 , respectively. These sales were reported in the Thermal Acoustical Solutions segment. No other customers accounted for more than 10.0% of total net sales in 2019 , 2018 , and 2017 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The provision for income taxes consists of the following: For the years ended December 31, In thousands 2019 2018 2017 Current: Federal $ 3,505 $ 3,739 $ 11,526 State 381 498 956 Foreign 4,479 3,788 2,425 Total Current $ 8,365 $ 8,025 $ 14,907 Deferred: Federal $ (12,481 ) $ 2,646 $ (2,472 ) State (1,442 ) 380 256 Foreign (858 ) (2,598 ) (717 ) Total Deferred (14,781 ) 428 (2,933 ) Provision (Benefit) for income taxes $ (6,416 ) $ 8,453 $ 11,974 The following is a reconciliation of the difference between the actual provision for income taxes and the provision computed by applying the federal statutory tax rate on earnings: For the years ended December 31, 2019 2018 2017 Statutory federal income tax rate 21.0 % 21.0 % 35.0 % State income taxes, net of federal benefit 2.7 1.6 1.6 Valuation allowances for deferred tax assets, including state (4.4 ) (1.3 ) 0.1 Research and development credits 0.7 (1.3 ) (1.0 ) Capitalized transaction costs — 0.6 — Domestic production activities deduction — — (1.8 ) Stock based compensation (0.1 ) (0.7 ) (4.4 ) Goodwill Impairment (19.6 ) — — Foreign income taxed at lower rates 2.4 (1.6 ) (2.8 ) Reserves for uncertain tax positions 0.3 — (1.7 ) Repatriation of foreign undistributed earnings — 1.6 1.3 Revaluation of deferred tax liabilities due to federal rate change — — (7.3 ) Pension plan settlement 5.9 — — Other (0.6 ) (0.4 ) 0.5 Effective income tax rate 8.3 % 19.5 % 19.5 % In 2019, the Company had a pre-tax loss primarily resulting from a goodwill impairment charge of $63.0 million , recorded in the fourth quarter of 2019. The impairment significantly impacted the Company's effective tax rate because goodwill impairment expense is not deductible for income taxes purposes, resulting in a low effective tax rate in 2019 when in a pre-tax loss position. Partially offsetting the impairment was a tax benefit of $4.5 million recorded in the second quarter of 2019 related to the reclassification of stranded tax effects from accumulated other comprehensive income. Also, the Company's effective tax rate in 2019 was negatively impacted by losses in jurisdictions in which no tax benefit can be recognized. In 2018, the effective tax rate of 19.5% was below the federal statutory rate and included valuation allowance activity of $0.6 million . This was primarily a result of the fourth quarter partial release of valuation allowance on the Netherlands net operating losses offset by a valuation allowance addition in Germany. Compared to 2017, the tax benefit from stock compensation expense had a lesser impact on the 2018 rate because of less windfall benefits recognized. Also, foreign income taxed at lower rates had a lesser impact on the 2018 rate because of new U.S. regulations that were released in the fourth quarter 2018 that limit the amount of the tax benefit recorded compared to 2017. In 2017, in addition to the Tax Reform Act, which favorably impacted the effective tax rate by a net $3.7 million , the effective tax rate of 19.5% was impacted by a favorable mix of taxable income generated from foreign income taxed at lower rates, resulting in a tax benefit of $1.7 million , net of $0.7 million of expense to correct a foreign tax error in prior years. The Company also recorded a tax benefit of $1.1 million attributable to the Domestic Production Activities Deduction, a tax benefit of $2.7 million related to stock based compensation and a tax benefit of $1.5 million attributable to the release of certain reserves for uncertain tax positions from the settlement of the IRS tax audit that closed in the third quarter of 2017. These favorable adjustments were partially offset by tax expense of $0.3 million against certain deferred tax assets in China, as future realization of the assets is not reasonably assured. The Company maintains valuation allowances against certain deferred tax assets where realization is not reasonably assured. The Company evaluates the likelihood of the realization of deferred tax assets and reduces the carrying amount to the extent it believes a portion will not be realized. The Company’s effective tax rates in future periods could be affected by increases or decreases in anticipated earnings in countries where tax rates differ from the United States federal rate, the relative impact of permanent tax adjustments on higher or lower earnings from domestic operations, changes in net deferred tax asset valuation allowances, completion of acquisitions or divestitures, changes in tax rates or tax laws, and the outcome of tax audits. The following schedule presents net current and net long-term deferred tax assets and liabilities by tax jurisdiction as of December 31, 2019 and 2018: 2019 2018 Deferred Tax Assets Deferred Tax Assets In thousands Current Long-term Current Long-term Federal $ — $ — $ — $ — State — — — — Foreign — 1,933 — 2,055 Totals $ — $ 1,933 $ — $ 2,055 2019 2018 Deferred Tax Liabilities Deferred Tax Liabilities In thousands Current Long-term Current Long-term Federal $ — $ 26,992 $ — $ 30,193 State — 2,902 — 3,728 Foreign — 4,667 — 5,344 Totals $ — $ 34,561 $ — $ 39,265 Net deferred tax assets (liabilities) consisted of the following as of December 31, 2019 and 2018 : December 31, In thousands 2019 2018 Deferred tax assets: Accounts receivable $ 377 $ 172 Financial Hedging Instruments 1,491 585 Interest Expense Carryovers 2,371 463 Inventories 1,845 520 Net operating loss carryforwards 8,478 6,095 Operating lease 6,001 — Other accrued liabilities 5,905 2,378 Pension 4,274 5,181 Tax Credits 2,015 1,846 Total deferred tax assets 32,757 17,240 Deferred tax liabilities: Intangible assets 21,990 25,133 Right of use assets 6,001 — Property, plant and equipment 28,177 23,353 Total deferred tax liabilities 56,168 48,486 Valuation allowance 9,217 5,964 Net deferred tax liabilities $ (32,628 ) $ (37,210 ) For the years ended December 31, 2019 , 2018 and 2017 , (loss) income before income taxes was derived from the following sources: For the years ended December 31, In thousands 2019 2018 2017 United States $ (73,539 ) $ 33,928 $ 54,212 Foreign (3,538 ) 9,337 7,107 Total income before income taxes $ (77,077 ) $ 43,265 $ 61,319 At December 31, 2019, the Company had approximately $4.0 million of state net operating loss carryforwards which will expire between 2027 and 2036. The Company has not recorded a deferred tax asset for $4.0 million of this carryforward as the Company anticipates paying a non-income based franchise tax for the foreseeable future in the applicable jurisdiction. In addition, at December 31, 2019, the Company had $2.1 million of state tax credit carryforwards that expire between 2020 and 2028. As of December 31, 2019, the Company has recorded a valuation allowance against the full amount of its state tax credit carryforwards. The Company also has $7.6 million of foreign net operating loss carryforwards in China, $13.7 million of net operating loss carryforwards in Germany, $3.4 million of net operating loss carryforwards in the Netherlands, and $0.7 million of net operating loss carryforwards in India. The Netherlands’ net operating losses expire between the years 2021 and 2025 and the China net operating losses expire between the years 2020 and 2024. A valuation allowance is recorded against the net operating losses in all four jurisdictions for the portion of its net operating losses that future realization is not reasonably assured. The Company evaluates and weighs the positive and negative evidence present at each period. The Company will continue to monitor the realization criteria based on future operating results. As of December 31, 2019 , the Company maintains its intention to distribute certain earnings of its foreign subsidiaries that have been previously taxed in the U.S. and has recorded taxes associated with this position. For the remainder of the undistributed foreign earnings, unless tax effective to repatriate, the Company will continue to permanently reinvest these earnings. As of December 31, 2019 , such undistributed earnings were approximately $3.4 million . The Company estimates that the amount of tax that would be payable on the undistributed earnings if repatriated to the United States could be up to $0.9 million . This amount may vary in the future due to a variety of factors including future tax law changes, future earnings and statutory taxes paid by foreign subsidiaries, and ongoing tax planning strategies by the Company. The Company and its subsidiaries file a consolidated federal income tax return, as well as returns required by various state and foreign jurisdictions. In the normal course of business, the Company is subject to examination by taxing authorities, including such major jurisdictions as the United States, China, France, Germany, Hong Kong, the Netherlands, Canada and the United Kingdom. Within the next fiscal year, the Company expects to conclude certain income tax matters through the year ended December 31, 2016 and it is reasonably expected that net unrecognized benefits of $1.6 million may be recognized. The total amount of unrecognized tax benefits that would affect the effective tax rate if recognized is $3.2 million as of December 31, 2019 . However, $1.3 million of the unrecognized tax benefits, if recognized, would be offset in pre-tax income by the reversal of indemnification assets due to the Company. The Company is no longer subject to U.S. federal examinations for years before 2016 , state and local examinations for years before 2013 , and non-U.S. income tax examinations for years before 2003 . A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: In thousands 2019 2018 Unrecognized tax benefits at beginning of year $ 3,563 $ 2,526 Decreases relating to positions taken in prior periods (36 ) (298 ) Increases relating to positions taken in prior periods — — Increases relating to current period — 1,584 Decreases due to settlements with tax authorities — (233 ) Decreases due to lapse of statute of limitations (315 ) (16 ) Unrecognized tax benefits at end of year $ 3,212 $ 3,563 The Company recognizes the interest accrued and the penalties related to unrecognized tax benefits as a component of tax expense. The Company accrued interest and penalties of $0.2 million and $0.1 million as of December 31, 2019 and 2018, respecitvely. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies The Company is subject to legal proceedings, claims, investigations and inquiries that arise in the ordinary course of business such as, but not limited to, actions with respect to commercial, intellectual property, employment, personal injury and environmental matters. While the outcome of any matter is inherently uncertain and the Company cannot be sure that it will prevail in any of the cases, subject to the matter referenced below, the Company is not aware of any matters pending that are expected to be material with respect to the Company’s business, financial position, results of operations or cash flows. Environmental Obligations In the fourth quarter of 2016, as part of a groundwater discharging permitting process, water samples collected from wells and process water basins at the Company’s Rochester, New Hampshire manufacturing facility, within the Performance Materials segment, showed concentrations of Perfluorinated Compounds (“PFCs”) in excess of state ambient groundwater quality standards. In January 2017, the Company received a notification from the State of New Hampshire Department of Environmental Services (“NHDES”) naming Lydall Performance Materials, Inc. a responsible party with respect to the discharge of regulated contaminants and, as such, required the Company to take action to investigate and remediate the impacts in accordance with standards established by the NHDES. The Company conducted a site investigation, the scope of which was reviewed by the NHDES, in order to assess the extent of potential soil and groundwater contamination and develop a remedial action. Based on input received from NHDES in 2017 with regard to the scope of the site investigation, the Company recorded $0.2 million of expense. In 2018, the Company received a response from the NHDES to the site investigation report outlining proposed remedial actions. The Company recorded an additional $0.1 million of expense in 2018 associated with the expected costs to remediate the impacts of the discharge of regulated contaminants in accordance with standards established by the NHDES. During 2018, the environmental liability was fully reduced reflecting payments made to vendors, resulting in no balance at December 31, 2018. Additionally, the Company incurred $0.2 million of capital expenditures in 2018, in relation to the lining of the Company's fresh water waste lagoons. In the third quarter of 2019, the Company reviewed interim remedial actions with the NHDES. The Company has not yet received further direction from the NHDES. The site investigation is ongoing. The Company cannot be sure that costs will not exceed the current estimates until this matter is closed with the NHDES, nor that any future corrective action at this location would not have a material effect on the Company’s financial condition, results of operations or cash flows. In December 2018, the New York State Department of Environmental Conservation (“NYDEC”) informed the Company that the newly acquired Interface site located at Hoosick Falls, NY will be the subject of an investigation in to the possibility of it being an inactive hazardous disposable waste site. The letter specifically references perflourinated compounds or per- and polyfluoroalkyl substances (“PFAS”) that have been detected in a nearby water supply, soil and/or surface water. Notably, the PFAS contamination has been identified in the Hoosick Falls area for some time and other large manufacturers in the area have previously been identified as a source. The NYDEC approved a site characterization plan in December 2019. The Company recorded expense of $0.3 million in the fourth quarter of 2019 as a result of the site characterization plan preparation and site characterization activities, which will continue into the first quarter of 2020. The Company does not know the scope or extent of its future obligations, if any, that may arise from the site investigation and therefore is unable to estimate the cost of any corrective action. Accordingly, the Company cannot assure that the costs of any future corrective at this location would not have a material effect on the Company's financial condition, results of operations or cash flows. Provisions for such matters are charged to expense when it is probable that a liability has been incurred and reasonable estimates of the liability can be made. Estimates of environmental liabilities are based on a variety of matters, including, but not limited to, the stage of investigation, the stage of the remedial design, evaluation of existing remediation technologies, and presently enacted laws and regulations. In future periods, a number of factors could significantly impact any estimates of environmental remediation costs. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share For the years ended December 31, 2019 , 2018 , and 2017 , basic earnings per share were computed by dividing net (loss) income by the weighted average number of shares of common stock outstanding during the period. Unexercised stock options and unvested restricted shares are excluded from this calculation but are included in the diluted earnings per share calculation using the treasury stock method as long as their effect is not antidilutive. The following table provides a reconciliation of weighted-average shares used to determine basic and diluted earnings per share. For the years ended In thousands 2019 2018 2017 Basic average common shares outstanding 17,271 17,204 17,045 Effect of dilutive options and restricted stock awards — 126 272 Diluted average common shares outstanding 17,271 17,330 17,317 Dilutive stock options totaling 54,828 shares of Common Stock were excluded from the diluted per share computation for the year ended December 31, 2019 , as the Company reported a net loss during that period and, therefore, the effective of including these options would be antidilutive. For the years ended December 31, 2019 , 2018 and 2017 , stock options for 573,920 , 455,515 and 44,837 shares of Common Stock, respectively, were not considered in computing diluted earnings per common share as the stock options were considered anti-dilutive. |
Quarterly Financial Information
Quarterly Financial Information (Unaudited) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information (Unaudited) | Quarterly Financial Information (Unaudited) The following table summarizes quarterly financial results for 2019 and 2018 . In management’s opinion, all material adjustments necessary for a fair statement of the information for such quarters have been reflected. 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter In thousands except per share data 2019 2018 2019 2018 2019 2018 2019 2018 Net sales $ 218,025 $ 191,660 $ 220,811 $ 186,413 $ 205,274 $ 197,886 $ 193,288 $ 209,938 Gross profit $ 42,056 $ 39,507 $ 45,275 $ 36,127 $ 36,356 $ 35,139 $ 28,103 $ 41,872 Net income (loss) $ 3,890 $ 11,054 $ (6,946 ) $ 10,450 $ 3,004 $ 6,256 $ (70,461 ) $ 7,184 Earnings (loss) per share: Basic $ 0.23 $ 0.64 $ (0.40 ) $ 0.61 $ 0.17 $ 0.36 $ (4.07 ) $ 0.42 Diluted $ 0.22 $ 0.64 $ (0.40 ) $ 0.60 $ 0.17 $ 0.36 $ (4.07 ) $ 0.42 The table above includes the quarterly results of Interface since the acquisition date of August 31, 2018. The following components are included gross profit and net income for 2019 and 2018 and impact the comparability of each year: 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter In thousands except per share data 2019 2018 2019 2018 2019 2018 2019 2018 Gross profit impact: Inventory step-up purchase accounting adjustments $ — $ — $ — $ — $ — $ 1,390 $ — $ 585 Restructuring, severance and segment consolidation expenses 351 449 42 876 88 400 1,137 169 Net income impact: Inventory step-up purchase accounting adjustments $ — $ — $ — $ — $ — $ 1,077 $ — $ 438 Restructuring, severance and segment consolidation expenses 364 494 93 711 114 409 1,836 527 Goodwill and other long-lived asset impairment charges — — — — — — 64,206 — CEO transition expenses — — — — — — 1,728 — Strategic initiatives expenses 652 87 311 923 — 1,730 161 493 Employee benefit plan settlements — — 14,977 — 142 — (347 ) — Gain on sale from a divestiture — — (1,265 ) — — — — Discrete tax items — — — — — — — 320 In connection with the preparation of its 2019 audited financial statements, the Company identified that in its previously filed unaudited interim financial statements for the three and six months ended June 30, 2019 and the nine months ended September 30, 2019, the Company had incorrectly excluded from its Consolidated Statements of Comprehensive Income the impact to comprehensive income resulting from the settlement of its U.S. Lydall Pension Plan (see Note 12). As a result, unaudited comprehensive income for such periods was understated by $19.0 million |
Recently Issued Accounting Stan
Recently Issued Accounting Standards | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Recently Issued Accounting Standards | Recently Issued Accounting Standards In June 2016, the FASB issued ASU 2016-13, "Financial Instruments - Credit Losses (Topic 326)". Subsequent additional clarifying ASUs were issued during 2019. Collectively, the new standards amend guidance on reporting credit losses for assets held at amortized cost basis. The Company has determined the only financial asset subject to the new standards are its trade receivables. As our allowance for doubtful accounts assessment process takes into consideration forward-looking information related to our customers in addition to historical experience the Company does not expect the new standard to have a material impact on the Company's consolidated financial statements and disclosures upon adoption of the new standards effective January 1, 2020. In August 2018, the FASB issued ASU 2018-13, "Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement", which adds, amends and removes certain disclosure requirements related to fair value measurements. Among other changes, this standard requires certain additional disclosure surrounding Level 3 assets, including changes in unrealized gains or losses in other comprehensive income and certain inputs in those measurements. Certain amended or eliminated disclosures in this standard may be adopted early, while certain additional disclosure requirements in this standard can be adopted on its effective date. In addition, certain changes in the standard require retrospective adoption, while other changes must be adopted prospectively. Upon adoption of this ASU effective January 1, 2020, the Company does not anticipate any material changes to its consolidated financial statements and related disclosures. In August 2018, the FASB issued ASU No. 2018-14, "Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20): Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans." This ASU requires entities to disclose the weighted-average interest crediting rates for cash balance plans and other plans with promised interest crediting rates. This ASU also requires entities to disclose an explanation for significant gains and losses related to changes in the benefit obligation for the period. This ASU is effective for fiscal years beginning after December 15, 2020 with early adoption permitted. The Company is currently evaluating the method and impact the adoption of this ASU will have on its consolidated financial statements and disclosures. In August 2018, the FASB issued ASU 2018-15, "Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40); Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract". The amendments in this update require implementation costs incurred by customers in cloud computing arrangements (i.e., hosting arrangements) to be capitalized under the same premises of authoritative guidance for internal-use software, and deferred over the noncancellable term of the cloud computing arrangement plus any option renewal periods that are reasonably certain to be exercised by the customer or for which the exercise is controlled by the service provider. The Company is required to adopt this new guidance in the first quarter of 2020. Early adoption is permitted. The Company currently does not have any cloud computing arrangements related to internal use software and therefore does not expect the new standard to have a material impact on its consolidated financial statements and disclosures upon adoption of the new standard effective January 1, 2020. In December 2019, the FASB issued ASU 2019-12, "Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes". The new standard is intended to simplify accounting for income taxes by removing certain exceptions to the general principles in Topic 740, and by clarifying and amending existing guidance in other areas of the same topic. This ASU is effective for fiscal years and interim periods beginning after December 15, 2020. The Company is currently evaluating the impact of this update on its consolidated financial statements and related disclosures. |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2019 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Changes in Accumulated Other Comprehensive Income (Loss) | Changes in Accumulated Other Comprehensive Income (Loss) The following table discloses the changes by classification within accumulated other comprehensive income (loss) for the period ended December 31, 2019 , 2018 and 2017 : In thousands Foreign Currency Translation Adjustment Defined Benefit Pension Adjustment Gains and Losses on Cash Flow Hedges Total Accumulated Other Comprehensive (Loss) Income Balance at December 31, 2016 $ (27,885 ) $ (20,065 ) $ — $ (47,950 ) Other Comprehensive income 25,664 1,299 (a) 122 (c) 27,085 Amounts reclassified from accumulated other comprehensive loss — 717 (b) — 717 Balance at December 31, 2017 $ (2,221 ) $ (18,049 ) $ 122 $ (20,148 ) Other Comprehensive loss (16,237 ) (4,998 ) (a) (2,096 ) (c) (23,331 ) Amounts reclassified from accumulated other comprehensive loss — 794 (b) — 794 Balance at December 31, 2018 $ (18,458 ) $ (22,253 ) $ (1,974 ) $ (42,685 ) Other Comprehensive income (loss) 436 (222 ) (a) (2,903 ) (c) (2,689 ) Amounts reclassified from accumulated other comprehensive loss — 19,395 (b) — 19,395 Balance at December 31, 2019 $ (18,022 ) $ (3,080 ) $ (4,877 ) $ (25,979 ) (a) Amount represents actuarial gains (losses) arising from the Company's pension and postretirement benefit obligations, excluding the effect of the settlement in 2019. This amount was $(0.2) million , net of less than $0.1 million tax benefit, for 2019 , $(5.0) million , net of a $1.5 million tax benefit, for 2018 and $1.3 million , net of $0.1 million tax expense, for 2017 . (See Note 12) (b) Amount represents the settlement of the Lydall Pension Plan in the second quarter of 2019. This amount was $19.0 million , net of $11.5 million tax benefit. Amount also represents the amortization of actuarial losses to pension expense arising from the Company’s pension and postretirement benefit obligations. This amount was $0.4 million , net of $0.1 million tax benefit during the first five months of fiscal year 2019 prior to the plan settlement, $0.8 million , net of $0.2 million tax benefit in 2018 , and $0.7 million , net of $0.4 million tax benefit in 2017 . (See Note 12) (c) Amount represents unrealized gains (losses) on the fair value of hedging activities, net of taxes, for the years ended December 31, 2019 , 2018 and 2017 . |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2019 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | Schedule II LYDALL, INC. VALUATION AND QUALIFYING ACCOUNTS FOR THE YEARS ENDED December 31, 2019 , 2018 AND 2017 In thousands Balance at January 1, Charges to Costs and Expenses Charges (Deductions) to Other Accounts Deductions Balance at December 31, 2019 Allowance for doubtful receivables $ 1,440 $ 1,036 $ (11 ) 2 $ (623 ) 1 $ 1,842 Tax valuation allowances 5,964 3,328 (75 ) 2 — 3 9,217 2018 Allowance for doubtful receivables $ 1,507 $ 785 $ (58 ) 2 $ (794 ) 1 $ 1,440 Tax valuation allowances 5,709 3,859 (192 ) 2 (3,412 ) 3 5,964 2017 Allowance for doubtful receivables $ 1,429 $ 541 $ 103 2 $ (566 ) 1 $ 1,507 Tax valuation allowances 4,903 886 394 2 (474 ) 3 5,709 1. Uncollected receivables written off and recoveries. 2. Foreign currency translation and other adjustments. 3. Reduction to income tax expense. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Principles of consolidation | Principles of consolidation — The Consolidated Financial Statements include the accounts of Lydall, Inc. and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated. |
Estimates and assumptions | Estimates and assumptions — The preparation of the Company’s Consolidated Financial Statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the financial statement dates and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. |
Risks and uncertainties | Risks and uncertainties — Worldwide economic cycles and political changes affect the markets that the Company’s businesses serve and affect demand for Lydall’s products and impact profitability. Among other factors, disruptions in the global credit and financial markets, including diminished liquidity and credit availability, changes in international trade agreements, swings in consumer confidence and spending, unstable economic growth and fluctuations in unemployment rates has caused economic instability and can have a negative impact on the Company’s results of operations, financial condition and liquidity. |
Cash and cash equivalents | Cash and cash equivalents — Cash and cash equivalents include cash on hand and highly liquid investments with original maturities of three months or less at the date of purchase. |
Concentration of credit risk | Concentrations of credit risk |
Inventories | Inventories — Inventories are valued at lower of cost or net realizable value, cost being determined using the first-in, first-out (FIFO) cost method. Inventories in excess of requirements for current or anticipated orders have been written down to net realizable value. |
Pre-production design and development costs | Pre-production design and development costs — The Company enters into contractual agreements with certain customers to design and develop molds, dies and tools (collectively, “tooling”). All such tooling contracts relate to parts that the Company will supply to customers under long-term supply agreements. Tooling costs are accumulated in work-in process inventory and are charged to operations as the related revenue from the tooling is recognized. The Company’s revenue recognition policies require the Company to make significant judgments and estimates regarding timing of recognition based on timing of the transfer of control to the customer. The Company analyzes several factors, including but not limited to, the nature of the products being sold and contractual terms and conditions in contracts with customers to help the Company make such judgments about revenue recognition. For tooling revenue recognized over time, the Company's significant judgments include, but are not limited to, estimated costs to completion, costs incurred to date, and assessments of risks related to changes in estimates of revenues and costs. The Company's management must make assumptions regarding the work required to fulfill the performance obligations, which is dependent upon the execution by the Company's subcontractors, among other variables and contract requirements. Periodically, the Company enters into contractually guaranteed reimbursement arrangements as a mechanism to collect amounts due from customers from tooling sales. Under these arrangements, amounts due from tooling sales are collected as parts are delivered over the part supply arrangement, in accordance with the specific terms of the arrangement. The amounts due from the customer in such transactions are recorded in “Prepaid expenses and other current assets” or “Other assets, net” based upon the expected term of the reimbursement arrangement. |
Property, plant and equipment | Property, plant and equipment — Property, plant, and equipment are stated at cost. Assets held under finance leases are recorded at the lower of the net present value of the minimum lease payments or the fair value of the leased asset at the inception of the lease. Please refer to Note 10, Leases, to these Consolidated Financial Statements for additional policy details related to all leases including finance leases. Property, plant and equipment, including property, plant and equipment under finance leases, are depreciated over their estimated useful lives using the straight-line method. Leasehold improvements are depreciated on a straight-line basis over the term of the lease or the life of the asset, whichever is shorter. The cost and accumulated depreciation amounts applicable to assets sold or otherwise disposed of are removed from the asset and accumulated depreciation accounts and any net gain or loss is included in the Consolidated Statements of Operations. Expenses for maintenance and repairs are charged to expense as incurred. |
Goodwill and other intangible assets | Goodwill and other intangible assets — Goodwill represents costs in excess of fair values assigned to the underlying net assets of acquired companies. Goodwill and other intangible assets with indefinite lives are not amortized but are subject to annual impairment tests. All other intangible assets are amortized over their estimated useful lives, which range from 2 to 17 years. In performing impairment tests, the Company considers discounted cash flows and other market factors as best evidence of fair value. There are inherent uncertainties and management judgment required in these analyses. Please refer to Note 6, Goodwill and Long-Lived Assets and Note 7, Impairment, to these Consolidated Financial Statements for additional details regarding impairment calculations. |
Valuation of long-lived assets | Valuation of long-lived assets — The Company evaluates the recoverability of long-lived assets, or asset groups, whenever events or changes in circumstances indicate that carrying amounts may not be recoverable. Should such evaluations indicate that the related future undiscounted cash flows are not sufficient to recover the carrying values of the assets, such carrying values would be reduced to fair value and this adjusted carrying value would become the assets’ new cost basis. For long-lived assets held for sale, assets are written down to fair value, less costs to sell. Please refer to Note 7, Impairment, to these Consolidated Financial Statements for additional details regarding impairment calculations. Fair value is determined primarily using future anticipated cash flows that are directly associated with, and that are expected to arise as a direct result of the use and eventual disposition of the asset, or asset group, as well as market conditions and other factors. There are inherent uncertainties and management judgment required in these analyses. |
Contingencies and environmental obligations | Contingencies and environmental obligations — |
Employer sponsored benefit plans | Employer sponsored benefit plans — The Company recognizes the funded status of its defined benefit pension plans and post-retirement plans. Net benefit obligations are calculated based on actuarial valuations using key assumptions related to discount rates, mortality rates and expected return on plan assets. |
Derivative instruments | Derivative instruments — Derivative instruments are measured at fair value and recognized as either assets or liabilities on the Consolidated Balance Sheet in either current or non-current other assets or other accrued liabilities or other long-term liabilities depending upon maturity and commitment. For derivative instruments that are designated and qualify as a fair value hedge, the gain or loss on the derivative as well as the offsetting loss or gain on the hedged item attributable to the hedged risk are recognized in the Consolidated Statement of Operations. For derivative instruments that are designated and qualify as a cash flow hedge, the effective portion of the gain or loss on the derivative is reported as a component of other comprehensive income and reclassified into earnings in the same period or periods in which the hedge transaction affects earnings. The Company selectively uses financial instruments to manage market risk associated with exposure to fluctuations in interest rates and foreign currency rates. These financial exposures are monitored and managed by the Company as an integral part of its risk management program. The Company does not engage in derivative instruments for speculative or trading purposes. Please refer to Note 9, Derivatives, to these Consolidated Financial Statements for additional details regarding the Company's derivative instruments. |
Revenue recognition | Revenue recognition — The Company's revenues are generated from the design and manufacture of specialty engineered filtration media, industrial thermal insulating solutions, automotive thermal and acoustical barriers for filtration/separation and thermal/acoustical applications. The Company’s revenue recognition policies require the Company to make judgments and estimates. The Company analyzes several factors, including but not limited to, the nature of the products being sold and contractual terms and conditions in contracts with customers to help the Company make such judgments about revenue recognition. In applying the Company’s revenue recognition policy, determinations must be made as to when control of products passes to the Company’s customers which can be either at a point in time or over time depending on when control of the Company’s products transfers to its customers. Revenue is generally recognized at a point in time when control passes to customers upon shipment of the Company’s products and revenue is generally recognized over time when control of the Company’s products transfers to customers during the manufacturing process. If sales are recognized at a point in time, the Company’s standard sales and shipping terms are FOB shipping point, therefore, most point in time revenue is recognized upon shipment. However, the Company conducts business with certain customers on FOB destination terms and in these instances point in time revenue is recognized upon receipt by the customer. In circumstances when control transfers over time, revenue is recognized based on the extent of progress towards completion of the performance obligation. Due to the nature of the work required to be performed on many of the Company’s performance obligations, the estimation of total revenue and cost at completion is complex, subject to many variables and requires significant judgment. See Note 2, Revenue from Contracts with Customers, to these Consolidated Financial Statements. Sales returns and allowances are recorded as identified or communicated by the customer and internally approved. The Company does not provide customers with general rights of return for products sold; however, in limited circumstances, the Company will allow sales returns and allowances from customers if the products sold do not conform to specifications. The Company's accounting policy is to record shipping and handling activities occurring after control has passed to the customer as a fulfillment cost rather than as a distinct performance obligation. Shipping and handling expenses consist primarily of costs incurred to deliver products to customers and internal costs related to preparing products for shipment and are recorded as a cost of sales. Amounts billed to customers as shipping and handling are classified as revenue when services are performed. |
Research and development | Research and development — Research and development costs are charged to expense as incurred and amounted to $11.2 million in 2019 , $10.6 million in 2018 , and $10.8 million in 2017 . Research and development costs were primarily comprised of development personnel salaries, prototype material costs and testing and trials of new products. |
Earnings per share | Earnings per share — Basic earnings per common share are equal to net income divided by the weighted average number of common shares outstanding during the period. Diluted earnings per common share are equal to net income divided by the weighted average number of common shares outstanding during the period, including the effect of stock options and stock awards, if such effect is dilutive. |
Income taxes | Income taxes — The provision for income taxes is based upon income reported in the accompanying Consolidated Financial Statements. Deferred income taxes reflect the impact of temporary differences between the amounts of income and expense recognized for financial reporting purposes and such amounts recognized for tax purposes. In the event the Company was to determine that it would not be able to realize all or a portion of its deferred tax assets in the future, the Company would record a valuation allowance through a charge to income in the period that such determination was made. Conversely, if the Company was to determine that it would be able to realize its deferred tax assets in the future in excess of the net carrying amounts, the Company would decrease the recorded valuation allowance and record an increase to income in the period that such determination was made. |
Translation of foreign currencies | Translation of foreign currencies — Assets and liabilities of foreign subsidiaries are translated at exchange rates prevailing on the balance sheet date. Revenues and expenses are translated at average exchange rates prevailing during the period. Any resulting translation gains or losses are reported in other comprehensive income (loss). |
Stock options and share grants | Stock options and share grants — The Company accounts for awards of equity instruments under the fair value method of accounting and recognizes such amounts in the Consolidated Statements of Operations. The Company recognizes expense on a straight-line basis over the vesting period of the entire award and records forfeitures as they occur. The Company estimates the fair value of option grants based on the Black Scholes option-pricing model. Expected volatility and expected term are based on historical information. The calculation assumes that future volatility and expected term are not likely to materially differ from the Company’s historical stock price volatility and historical exercise data, respectively. Compensation expense for all restricted stock awards is recorded based on the market value of the stock on the grant date and recognized as expense over the vesting period of the award. Compensation expense for performance-based restricted stock is also impacted by the probability of achieving the performance targets. |
Recently adopted accounting standards and recently issued accounting standards | Recently Adopted Accounting Standards Effective January 1, 2019, the Company adopted the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2016-02, "Leases (Topic 842)", along with several additional clarification ASU's issued during 2018 (collectively, "New Lease Standard"). The New Lease Standard requires entities that lease assets with lease terms of more than 12 months to recognize right-of-use assets and lease liabilities created by those leases on their balance sheets. This New Lease Standard also requires new qualitative and quantitative disclosures to help investors and other financial statement users better understand the amount, timing, and uncertainty of cash flows arising from leases. The Company's adoption of the New Lease Standard was on a modified retrospective basis and did not have any impact on the Company's financial statements and disclosures for all periods prior to 2019. As part of the adoption of the New Lease Standard, the Company elected the package of practical expedients which allowed the Company to not re-assess 1) if any existing arrangements contained a lease, 2) the lease classification of any existing leases and 3) initial direct costs for any existing lease. The Company also elected the practical expedient which allows use of hindsight in determining the lease term for leases in existence at the date of adoption. Effective January 1, 2019, the Company reported lease right-of-use assets and lease liabilities on the Company's Consolidated Balance Sheets. Adoption of the New Lease Standard did not change the balances reported in the Company's 2019 Consolidated Statements of Operations, Consolidated Statements of Cash Flows, or Consolidated Statements of Comprehensive Income. See Footnote 10 "Leases" for additional information required as part of the adoption of the New Lease Standard. Effective January 1, 2019, the Company adopted the FASB issued ASU No. 2017-12, "Derivatives and Hedging (Topic 815): Targeted Improvements to Account for Hedging Activities". This ASU provides various improvements revolving around the financial reporting of hedging relationships that requires an entity to amend the presentation and disclosure of hedging activities to better portray the economic results of an entity's risk management activities in its financial statements. The adoption of this ASU did not have any impact on the Company’s consolidated financial statements and disclosures. Effective January 1, 2019, the Company adopted the FASB issued ASU No. 2018-02, "Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income". This ASU allows for reclassification of stranded tax effects resulting from the 2017 Tax Cuts and Jobs Act from accumulated other comprehensive income to retained earnings, but does not require the reclassification. The Company elected not to reclassify the income tax effects of the 2017 Tax Cuts and Jobs Act from accumulated other comprehensive income to retained earnings. Effective January 1, 2019, the Company adopted the FASB issued ASU No. 2018-07, "Compensation - Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting". This ASU expands the guidance for stock-based compensation to include share-based payment transactions for acquiring goods and services from nonemployees. The adoption of this ASU did not have any impact on the Company’s consolidated financial statements and disclosures. Effective July 1, 2019, the FASB ASU No. 2019-07, “Codification Updates to SEC Sections — Amendments to SEC Paragraphs Pursuant to SEC Final Rule Releases No. 33-10532, Disclosure Update and Simplification, and Nos. 33-10231 and 33-10442, Investment Company Reporting Modernization and Miscellaneous Updates (SEC Update)”. ASU 2019-07 aligns the guidance in various SEC sections of the Codification with the requirements of certain SEC final rules. The adoption of this ASU did not have any impact on the Company's consolidated financial statements and disclosures. Effective October 1, 2019, the Company adopted the FASB issued ASU No. 2017-04, "Intangibles - Goodwill and Other (Topic 350), Simplifying the Test for Goodwill Impairment." This ASU simplifies the subsequent measurement of goodwill by eliminating the second step of the goodwill impairment test and allows for an impairment of goodwill to be recorded as the difference in the carrying value and quantitative calculation of fair value (previously known as step one). Please refer to Footnote 7 "Impairment", for additional details of the annual goodwill impairment testing for its reporting units, including an impairment of $63.0 million which was recorded in the fourth quarter of 2019 in the Performance Materials segment. In June 2016, the FASB issued ASU 2016-13, "Financial Instruments - Credit Losses (Topic 326)". Subsequent additional clarifying ASUs were issued during 2019. Collectively, the new standards amend guidance on reporting credit losses for assets held at amortized cost basis. The Company has determined the only financial asset subject to the new standards are its trade receivables. As our allowance for doubtful accounts assessment process takes into consideration forward-looking information related to our customers in addition to historical experience the Company does not expect the new standard to have a material impact on the Company's consolidated financial statements and disclosures upon adoption of the new standards effective January 1, 2020. In August 2018, the FASB issued ASU 2018-13, "Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement", which adds, amends and removes certain disclosure requirements related to fair value measurements. Among other changes, this standard requires certain additional disclosure surrounding Level 3 assets, including changes in unrealized gains or losses in other comprehensive income and certain inputs in those measurements. Certain amended or eliminated disclosures in this standard may be adopted early, while certain additional disclosure requirements in this standard can be adopted on its effective date. In addition, certain changes in the standard require retrospective adoption, while other changes must be adopted prospectively. Upon adoption of this ASU effective January 1, 2020, the Company does not anticipate any material changes to its consolidated financial statements and related disclosures. In August 2018, the FASB issued ASU No. 2018-14, "Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20): Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans." This ASU requires entities to disclose the weighted-average interest crediting rates for cash balance plans and other plans with promised interest crediting rates. This ASU also requires entities to disclose an explanation for significant gains and losses related to changes in the benefit obligation for the period. This ASU is effective for fiscal years beginning after December 15, 2020 with early adoption permitted. The Company is currently evaluating the method and impact the adoption of this ASU will have on its consolidated financial statements and disclosures. In August 2018, the FASB issued ASU 2018-15, "Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40); Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract". The amendments in this update require implementation costs incurred by customers in cloud computing arrangements (i.e., hosting arrangements) to be capitalized under the same premises of authoritative guidance for internal-use software, and deferred over the noncancellable term of the cloud computing arrangement plus any option renewal periods that are reasonably certain to be exercised by the customer or for which the exercise is controlled by the service provider. The Company is required to adopt this new guidance in the first quarter of 2020. Early adoption is permitted. The Company currently does not have any cloud computing arrangements related to internal use software and therefore does not expect the new standard to have a material impact on its consolidated financial statements and disclosures upon adoption of the new standard effective January 1, 2020. In December 2019, the FASB issued ASU 2019-12, "Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes". The new standard is intended to simplify accounting for income taxes by removing certain exceptions to the general principles in Topic 740, and by clarifying and amending existing guidance in other areas of the same topic. This ASU is effective for fiscal years and interim periods beginning after December 15, 2020. The Company is currently evaluating the impact of this update on its consolidated financial statements and related disclosures. |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Schedule of Assets included in the Consolidated Balance Sheet | The following tooling related assets were included in the Consolidated Balance Sheets as of December 31, 2019 and 2018 : December, 31 In thousands 2019 2018 Inventories, net of progress billings and reserves $ 1,777 $ 4,262 Prepaid expenses and other current assets 530 469 Other assets, net 1,757 987 Total tooling related assets $ 4,064 $ 5,718 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Contract Assets and Liabilities | Contract assets and liabilities consisted of the following: In thousands December 31, 2019 December 31, 2018 Dollar Change Contract assets $ 28,245 $ 23,040 $ 5,205 Contract liabilities $ 1,441 $ 4,537 $ (3,096 ) |
Schedule of Disaggregation of Revenue by Geographical Location | Disaggregated revenue by geographical region, based on the region in which the sales originated, for the years ended December 31, 2019 and 2018 were as follows: Year Ended December 31, 2019 In thousands Performance Materials Technical Nonwovens Thermal Acoustical Solutions Eliminations and Other Consolidated Net Sales North America $ 176,094 $ 157,579 $ 245,870 $ (24,287 ) $ 555,256 Europe 61,889 68,456 98,221 (718 ) 227,848 Asia 7,497 29,311 17,486 — 54,294 Total Net Sales $ 245,480 $ 255,346 $ 361,577 $ (25,005 ) $ 837,398 Year Ended December 31, 2018 In thousands Performance Materials Technical Nonwovens Thermal Acoustical Solutions Eliminations and Other Consolidated Net Sales North America $ 117,313 $ 167,519 $ 250,133 $ (25,121 ) $ 509,844 Europe 49,055 73,912 99,529 (697 ) 221,799 Asia 2,849 35,640 15,765 — 54,254 Total Net Sales $ 169,217 $ 277,071 $ 365,427 $ (25,818 ) $ 785,897 |
Acquisitions and Divestitures (
Acquisitions and Divestitures (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Schedule of Fair Values of Identifiable Assets Acquired and Liabilities Assumed at Date of Acquisition | The following table summarizes the fair values of identifiable assets acquired and liabilities assumed at the date of the acquisition: In thousands Accounts receivable $ 25,182 Inventories 17,013 Prepaid expenses and other current assets 2,382 Property, plant and equipment 40,902 Goodwill (Note 6) 129,749 Other intangible assets (Note 6) 106,900 Other assets 308 Total assets acquired, net of cash acquired $ 322,436 Current liabilities (11,319 ) Deferred tax liabilities (Note 16) (24,081 ) Benefit plan liabilities (Note 12) (19,002 ) Other long-term liabilities (1,031 ) Total liabilities assumed (55,433 ) Total purchase price, net of cash acquired $ 267,003 |
Schedule of Unaudited Pro Forma Operating Results | The following table reflects the unaudited pro forma operating results of the Company for the years ended December 31, 2019 , 2018 and 2017 , which gives effect to the acquisition of Interface as if it had occurred on January 1, 2017. The pro forma information includes the historical financial results of the Company and Interface. The pro forma results are not necessarily indicative of the operating results that would have occurred had the acquisition been effective January 1, 2017, nor are they intended to be indicative of results that may occur in the future. The pro forma information does not include the effects of any synergies related to the acquisition. For The Years Ended (Actual) (Unaudited (Unaudited In thousands 2019 2018 2017 Net Sales $ 837,398 $ 888,355 $ 840,040 Net Income $ (70,513 ) $ 37,537 $ 36,773 Earnings per share: Basic $ (4.08 ) $ 2.18 $ 2.16 Diluted $ (4.08 ) $ 2.17 $ 2.12 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories as of December 31, 2019 and 2018 were as follows: December 31, In thousands 2019 2018 Raw materials $ 36,322 $ 37,731 Work in process 14,873 18,296 Finished goods 29,349 28,438 Total inventories $ 80,544 $ 84,465 |
Property, Plant and Equipment_2
Property, Plant and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | Property, plant and equipment as of December 31, 2019 and 2018 were as follows: Estimated Useful Lives December 31, In thousands 2019 2018 Land – $ 6,268 $ 6,280 Buildings and improvements 10-35 years 107,721 104,036 Machinery and equipment 5-25 years 308,457 289,059 Office equipment 2-8 years 36,905 36,110 Vehicles 3-6 years 1,516 1,640 Assets under finance leases: Land – 225 228 Buildings and improvements 2-10 years — 229 Machinery and equipment 8-10 years 200 1,005 Office equipment 5 years 31 32 461,323 438,619 Accumulated depreciation (265,586 ) (244,098 ) Accumulated depreciation of finance leases (143 ) (608 ) 195,594 193,913 Construction in progress 26,048 19,456 Total property, plant and equipment, net $ 221,642 $ 213,369 |
Goodwill and Long-Lived Assets
Goodwill and Long-Lived Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Gross and Net Carrying Amounts of Goodwill | Gross and net carrying amounts of goodwill at December 31, 2019 and 2018 were as follows: In thousands Performance Materials Technical Nonwovens Thermal Acoustical Solutions Totals Goodwill $ 144,626 $ 52,337 $ 12,160 $ 209,123 Accumulated amortization/impairment — — (12,160 ) (12,160 ) Balance at December 31, 2018 144,626 52,337 — 196,963 Goodwill 143,658 53,254 12,160 209,072 Accumulated amortization/impairment (63,000 ) — (12,160 ) (75,160 ) Balance at December 31, 2019 $ 80,658 $ 53,254 $ — $ 133,912 |
Schedule of Changes in the Carrying Amounts of Goodwill | The changes in the carrying amounts of goodwill in 2019 and 2018 were as follows: In thousands Performance Materials Technical Nonwovens Totals Balance at January 1, 2018 $ 13,307 $ 55,662 $ 68,969 Goodwill addition 131,509 — 131,509 Currency translation adjustment (190 ) (3,325 ) (3,515 ) Balance at December 31, 2018 144,626 52,337 196,963 Goodwill reduction (662 ) — (662 ) Goodwill impairment (63,000 ) — (63,000 ) Currency translation adjustment (306 ) 917 611 Balance at December 31, 2019 $ 80,658 $ 53,254 $ 133,912 |
Schedule of Amortization of the Company's Acquired Intangible Assets other than Goodwill | The table below presents the gross carrying amount and, as applicable, the accumulated amortization of the Company’s acquired intangible assets other than goodwill included in “Other intangible assets, net” in the Consolidated Balance Sheets as of December 31, 2019 and 2018 : December 31, 2019 December 31, 2018 In thousands Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Amortized intangible assets Customer relationships $ 142,400 $ (30,648 ) $ 141,455 $ (11,453 ) Patents 759 (607 ) 4,333 (3,816 ) Technology 2,500 (977 ) 2,500 (810 ) Trade names 7,293 (5,143 ) 7,235 (2,840 ) License agreements 610 (610 ) 619 (619 ) Other 551 (551 ) 561 (561 ) Total amortized intangible assets $ 154,113 $ (38,536 ) $ 156,703 $ (20,099 ) In thousands Performance Materials Technical Nonwovens Thermal Acoustical Solutions Totals Impairment of goodwill $ 63,000 $ — $ — $ 63,000 Impairment of other long-lived assets 1,206 — — 1,206 Total impairments 64,206 — — 64,206 |
Impairments of Goodwill and O_2
Impairments of Goodwill and Other Long-Lived Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Impairment Charges | The table below presents the gross carrying amount and, as applicable, the accumulated amortization of the Company’s acquired intangible assets other than goodwill included in “Other intangible assets, net” in the Consolidated Balance Sheets as of December 31, 2019 and 2018 : December 31, 2019 December 31, 2018 In thousands Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Amortized intangible assets Customer relationships $ 142,400 $ (30,648 ) $ 141,455 $ (11,453 ) Patents 759 (607 ) 4,333 (3,816 ) Technology 2,500 (977 ) 2,500 (810 ) Trade names 7,293 (5,143 ) 7,235 (2,840 ) License agreements 610 (610 ) 619 (619 ) Other 551 (551 ) 561 (561 ) Total amortized intangible assets $ 154,113 $ (38,536 ) $ 156,703 $ (20,099 ) In thousands Performance Materials Technical Nonwovens Thermal Acoustical Solutions Totals Impairment of goodwill $ 63,000 $ — $ — $ 63,000 Impairment of other long-lived assets 1,206 — — 1,206 Total impairments 64,206 — — 64,206 |
Long-term Debt and Financing _2
Long-term Debt and Financing Arrangements (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Total Outstanding Debt | Total outstanding debt consists of: December 31, In thousands Effective Rate Maturity 2019 2018 Revolver loan 3.80% 8/31/2023 $ 126,500 $ 138,000 Term loan, net of debt issuance costs 3.80% 8/31/2023 146,106 186,498 Finance leases 0.00% - 2.09% 2020 35 315 272,641 324,813 Less portion due within one year (9,928 ) (10,172 ) Total long-term debt, net of debt issuance costs $ 262,713 $ 314,641 |
Derivatives (Tables)
Derivatives (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Assets at Fair Value | The following table sets forth the fair value amounts of derivative instruments held by the Company: December 31, 2019 December 31, 2018 In thousands Asset Derivatives Liability Derivatives Asset Derivatives Liability Derivatives Derivatives designated as hedging instruments: Interest rate contracts $ 2 $ 4,538 $ 179 $ 2,738 Cross-currency swaps — 1,817 — — Total derivatives $ 2 $ 6,355 $ 179 $ 2,738 |
Schedule of Derivative Liabilities at Fair Value | The following table sets forth the fair value amounts of derivative instruments held by the Company: December 31, 2019 December 31, 2018 In thousands Asset Derivatives Liability Derivatives Asset Derivatives Liability Derivatives Derivatives designated as hedging instruments: Interest rate contracts $ 2 $ 4,538 $ 179 $ 2,738 Cross-currency swaps — 1,817 — — Total derivatives $ 2 $ 6,355 $ 179 $ 2,738 |
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) | The following table sets forth the (loss) income, recorded in accumulated other comprehensive loss, net of tax, for the years ended December 31, 2019 and 2018 for derivatives held by the Company and designated as hedging instruments: Years Ended 2019 2018 Cash flow hedges: Interest rate contracts $ (1,500 ) $ (2,096 ) Cross-currency swaps $ (1,403 ) $ — Total derivatives $ (2,903 ) $ (2,096 ) |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Schedule of Components of Lease Expense | The components of lease expense are as follows: In thousands For the year ended December 31, 2019 Finance lease expense: Amortization of right-of-use assets $ 81 Interest on lease liabilities 2 Operating lease expense 6,510 Short-term lease expense 918 Variable lease expense 199 Total lease expense $ 7,710 |
Schedule of Supplemental Balance Sheet Information Related to Leases | Supplemental balance sheet information related to leases are as follows: In thousands, except lease term December 31, 2019 Operating leases: Operating lease right-of-use assets $ 23,116 Short-term lease liabilities, included in "Other accrued liabilities" $ 4,789 Long-term lease liabilities 18,424 Total operating lease liabilities $ 23,213 Finance leases: Property, plant and equipment $ 456 Accumulated depreciation (143 ) Property, plant and equipment, net $ 313 Short-term lease liabilities, included in debt $ 35 Long-term lease liabilities, included in debt — Total finance lease liabilities $ 35 Weighted average remaining lease term: Operating leases 7.1 years Finance leases 20.4 years |
Schedule of Supplemental Cash Flow Information Related to Leases | Supplemental cash flow information related to leases are as follows: For the year ended December 31, In thousands 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 6,301 Operating cash flows from finance leases 2 Financing cash flows from finance leases 240 Right-of-use assets obtained in exchange for lease obligations: Operating leases 1,743 Finance leases — |
Schedule of Maturities of Operating Lease Liabilities | As of December 31, 2019 , future lease payments maturities were as follows: In thousands Years Ending December 31, Operating Leases Finance Leases 2020 $ 5,680 $ 36 2021 4,329 — 2022 3,555 — 2023 2,659 — 2024 1,848 — Thereafter 9,465 — Total lease payments 27,536 36 Less imputed interest (4,323 ) (1 ) Total discounted future lease payments $ 23,213 $ 35 As of December 31, 2018 , future lease payment maturities were as follows: In thousands Years Ending December 31, Operating Leases Finance Leases 2019 $ 6,004 $ 279 2020 4,871 35 2021 3,877 — 2022 3,226 — 2023 2,617 — Thereafter 11,111 — Total lease payments $ 31,706 $ 314 |
Schedule of Maturities of Finance Lease Liabilities | As of December 31, 2019 , future lease payments maturities were as follows: In thousands Years Ending December 31, Operating Leases Finance Leases 2020 $ 5,680 $ 36 2021 4,329 — 2022 3,555 — 2023 2,659 — 2024 1,848 — Thereafter 9,465 — Total lease payments 27,536 36 Less imputed interest (4,323 ) (1 ) Total discounted future lease payments $ 23,213 $ 35 As of December 31, 2018 , future lease payment maturities were as follows: In thousands Years Ending December 31, Operating Leases Finance Leases 2019 $ 6,004 $ 279 2020 4,871 35 2021 3,877 — 2022 3,226 — 2023 2,617 — Thereafter 11,111 — Total lease payments $ 31,706 $ 314 |
Employer Sponsored Benefit Pl_2
Employer Sponsored Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
Schedule of Net Funded Status | Plan assets and benefit obligations of the former U.S. Lydall Pension Plan and the Interface Pension Plans were as follows: December 31, In thousands 2019 2018 Change in benefit obligation: Net benefit obligation at beginning of year $ 102,679 $ 51,882 Benefit obligation assumed through acquisition — 52,392 Service Cost 136 46 Interest cost 2,132 2,595 Actuarial loss/(gain) 5,149 (876 ) Gross benefits paid (2,932 ) (3,360 ) Net effect of remeasurement (3,290 ) — Settlement (48,773 ) — Net benefit obligation at end of year $ 55,101 $ 102,679 Change in plan assets: Fair value of plan assets at beginning of year $ 87,452 $ 44,174 Fair value of plan assets through acquisition — 43,230 Actual return/(loss) on plan assets 6,987 (4,092 ) Contributions 1,415 7,500 Gross benefits paid (2,932 ) (3,360 ) Net effect of remeasurement (211 ) — Settlement (48,773 ) — Fair value of plan assets at end of year $ 43,938 $ 87,452 Net benefit obligation in excess of plan assets $ (11,163 ) $ (15,227 ) Balance sheet amounts: Current liabilities $ (787 ) $ (3,078 ) Noncurrent liabilities $ (10,376 ) $ (12,149 ) Total liabilities $ (11,163 ) $ (15,227 ) Amounts recognized in accumulated other comprehensive income, net of tax consist of: Net actuarial loss $ 2,579 $ 21,850 Net amount recognized $ 2,579 $ 21,850 |
Schedule of Accumulated Benefit Obligations in Excess of Fair Value of Plan Assets | Aggregated information for the domestic defined benefit pension plans with an accumulated benefit obligation in excess of plan assets is provided in the tables below: December 31, In thousands 2019 2018 Projected benefit obligation $ 55,101 $ 102,679 Accumulated benefit obligation $ 55,101 $ 104,188 Fair value of plan assets $ 43,938 $ 87,452 |
Schedule of Components of Net Periodic Benefit Cost for Domestic Pension Plan | Components of net periodic benefit cost for the domestic defined benefit pension plans: December 31, In thousands 2019 2018 2017 Service cost $ 136 $ 46 $ — Interest cost 2,886 2,595 2,058 Expected return on plan assets (2,601 ) (3,339 ) (2,376 ) Amortization of actuarial net loss 464 1,024 1,092 Total net periodic benefit cost $ 885 $ 326 $ 774 Settlement loss 25,247 $ — $ — Total employer pension plan cost $ 26,132 $ 326 $ 774 |
Schedule of Net Periodic Benefit Cost Not yet Recognized | The major assumptions used in determining the year-end benefit obligation and annual net cost for the domestic defined benefit pension plans are presented in the following table: Benefit Obligation Net Cost For the years ended December 31, 2019 2018 2019 2018 2017 Discount rate 3.37 % 3.99 % 3.88 % 3.75 % 4.21 % Expected return on plan assets 5.06 % 4.08 % 4.65 % 5.79 % 6.30 % |
Schedule of Allocation of Plan Assets | The following table presents the target allocation of the IPM Pension Plan assets for 2020 and the actual allocation of all domestic defined benefit pension plan assets as of December 31, 2019 and 2018 by major asset category: Target Allocation Actual Allocation of Plan Assets Asset Category 2020 (1) 2019 2018 (2) Domestic equities 20% - 40% 38 % 16 % International equities 15% - 35% 25 % 11 % Fixed income 20%-45% 18 % 49 % Real assets 0% - 10% 7 % 3 % Hedge fund of funds 5% - 15% 9 % 5 % Cash and cash equivalents 0% - 10% 3 % 16 % (1) Target allocation percentages reflect the IPM Pension Plan only, as the terminated ISS Pension Plan assets, which comprise 5% of the total domestic defined benefit pension balances at December 31, 2019, has an investment target of primarily fixed income investments in anticipation of 2020 settlement. (2) Plan Assets as of December 31, 2018 included values associated with the U.S. Lydall Plan, which was settled during 2019. |
Schedule of Changes in Fair Value of Plan Assets | The following tables set forth the fair value of the assets by major asset category as of December 31, 2019 and December 31, 2018 : December 31, 2019 In thousands Level 1 Level 2 Level 3 Measured at NAV Total Domestic equity $ 16,729 $ — $ — $ — $ 16,729 International equity 10,903 — — — 10,903 Fixed income 3,724 — — — 3,724 U.S. government securities — 2,686 — — 2,686 Corporate and foreign bonds — 1,701 — — 1,701 Real assets 3,010 — — — 3,010 Hedge fund of funds 4,009 — — — 4,009 Cash and cash equivalents 145 1,031 — — 1,176 Total Assets at Fair Value $ 38,520 $ 5,418 $ — $ — $ 43,938 December 31, 2018 In thousands Level 1 Level 2 Level 3 Measured at NAV Total Domestic equity $ 13,941 $ — $ — $ — $ 13,941 International equity 9,547 — — — 9,547 Fixed income 10,977 — — 27,727 38,704 U.S. government securities — 2,466 — — 2,466 Corporate and foreign bonds — 1,448 — — 1,448 Real assets 2,808 — — — 2,808 Hedge fund of funds 4,129 — — 312 4,441 Cash and cash equivalents 12,027 2,070 — — 14,097 Total Assets at Fair Value $ 53,429 $ 5,984 $ — $ 28,039 $ 87,452 |
Schedule of Expected Benefit Payments | Estimated future benefit payments for the next 10 years for the Interface Pension Plans are as follows: In thousands 2020 2021 2022 2023 2024 2025-2028 Benefit payments $ 5,903 $ 3,026 $ 3,065 $ 3,082 $ 3,138 $ 15,957 |
Equity Compensation Plans (Tabl
Equity Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Valuation Assumptions of Options Granted | The fair value of each option granted was estimated on the date of grant using the Black-Scholes option-pricing model with the following weighted-average assumptions for the years ended December 31: 2019 2018 2017 Risk-free interest rate 1.7 % 2.7 % 2.2 % Expected life 5.3 years 5.5 years 5.5 years Expected volatility 37 % 34 % 33 % Expected dividend yield — % — % — % |
Schedule of Nonvested Share Activity | The following is a summary of the option activity as of December 31, 2019 and changes during the year then ended: In thousands except per share amounts and years Shares Weighted-Average Exercise Price Weighted- Average Remaining Contractual Term (years) Aggregate Intrinsic Value Outstanding at December 31, 2018 623 $ 30.14 Granted 242 $ 19.35 Exercised (40) $ 11.47 Forfeited/Cancelled (142) $ 31.36 Outstanding at December 31, 2019 683 $ 27.15 7.9 $ 688 Options exercisable at December 31, 2019 318 $ 33.01 6.1 $ 372 Unvested at December 31, 2019 365 $ 22.04 3.0 $ 316 |
Schedule of Nonvested Restricted Stock Units Activity | The following is a summary of the Company’s unvested restricted shares for the year ended and as of December 31, 2019 : In thousands except per share amounts Outstanding Restricted Shares Shares Weighted-Average Grant-Date Fair Value Nonvested at December 31, 2018 304 $ 37.02 Granted 157 $ 20.96 Vested (23) $ 56.45 Forfeited/Cancelled (150) $ 38.07 Nonvested at December 31, 2019 288 $ 26.13 |
Restructuring (Tables)
Restructuring (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring and Related Costs | Actual pre-tax expenses incurred for the restructuring program by type are as follows: In thousands Severance and Related Expenses Contract Termination Expenses Facility Exit, Move and Set-up Expenses Total Expenses incurred during year ended: December 31, 2017 $ 181 $ 154 $ 327 $ 662 December 31, 2018 606 136 1,555 2,297 December 31, 2019 145 — 622 767 Total expenses $ 932 $ 290 $ 2,504 $ 3,726 |
Schedule of Restructuring Reserve by Type of Cost | Accrued restructuring costs were as follows at December 31, 2019 : In thousands Total December 31, 2017 $ 333 Pre-tax restructuring expenses, excluding depreciation $ 2,012 Cash paid (2,198 ) December 31, 2018 $ 147 Pre-tax restructuring expenses, excluding depreciation $ 767 Cash paid (806 ) December 31, 2019 $ 108 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Net Sales by Segment and for OPS, Reconciling Items to Equal to Consolidated Net Sales | Net sales by segment, as well as reconciling items, to equal consolidated net sales for the years ended December 31, 2019 , 2018 , and 2017 were as follows: Consolidated Net Sales For the Years Ended December 31, In thousands 2019 2018 2017 Performance Materials Segment (1): Filtration $ 93,314 $ 93,089 $ 87,173 Sealing and Advanced Solutions 152,166 76,128 29,496 Performance Materials Segment net sales 245,480 169,217 116,669 Technical Nonwovens Segment (2): Industrial Filtration 144,320 157,606 147,087 Advanced Materials (3) 111,026 119,465 121,990 Technical Nonwovens net sales 255,346 277,071 269,077 Thermal Acoustical Solutions Segment: Parts 326,436 328,057 318,217 Tooling 35,141 37,370 23,888 Thermal Acoustical Solutions Segment net sales 361,577 365,427 342,105 Eliminations and Other (3) (25,005 ) (25,818 ) (29,414 ) Consolidated Net Sales $ 837,398 $ 785,897 $ 698,437 Operating income by segment and Corporate Office Expenses for the years ended December 31, 2019 , 2018 , and 2017 were as follows: Operating Income For the Years Ended December 31, In thousands 2019 2018 2017 Performance Materials Segment (1) $ (59,804 ) $ 13,139 $ 12,321 Technical Nonwovens Segment (2) 22,895 21,323 26,047 Thermal Acoustical Solutions Segment 23,590 38,085 53,132 Corporate Office Expenses (25,506 ) (23,359 ) (25,300 ) Consolidated Operating Income $ (38,825 ) $ 49,188 $ 66,200 |
Schedule of Total Assets by Segment | Total assets by segment and the Corporate Office were as follows at December 31, 2019 , 2018 , and 2017 : Total Assets December 31, In thousands 2019 2018 2017 Performance Materials Segment (1) $ 325,164 $ 414,211 $ 72,837 Technical Nonwovens Segment (2) 242,787 242,007 271,713 Thermal Acoustical Solutions Segment 199,218 201,509 189,301 Corporate Office 18,768 14,959 27,020 Total Assets $ 785,937 $ 872,686 $ 560,871 The significant reduction in total assets in the Performance Materials segment was driven by $64.2 million of goodwill and other long lived asset impairment charges in the fourth quarter of 2019. Total capital expenditures and depreciation and amortization by segment and the Corporate Office for the years ended December 31, 2019 , 2018 , and 2017 were as follows: Capital Expenditures Depreciation and Amortization In thousands 2019 2018 2017 2019 2018 2017 Performance Materials Segment (1) $ 8,914 $ 11,288 $ 3,610 $ 25,118 $ 9,006 $ 3,996 Technical Nonwovens Segment (2) 9,345 5,864 2,903 12,702 13,877 12,625 Thermal Acoustical Solutions Segment 17,858 11,934 17,462 10,168 9,190 8,619 Corporate Office 316 544 940 635 658 699 Total $ 36,433 $ 29,630 $ 24,915 $ 48,623 $ 32,731 $ 25,939 |
Schedule of Net Sales by Geographic Area | Net sales by geographic area for the years ended December 31, 2019 , 2018 and 2017 and long-lived asset information by geographic area as of December 31, 2019 , 2018 , and 2017 were as follows: Net Sales Long-Lived Assets In thousands 2019 2018 2017 2019 (4) 2018 2017 United States (1) $ 478,720 $ 422,222 $ 376,086 $ 138,265 $ 136,448 $ 93,583 France (1) 75,313 66,579 56,214 13,723 13,219 14,268 Germany (1) 124,402 125,796 105,828 44,116 25,873 20,872 United Kingdom 26,556 27,156 24,921 5,981 4,844 4,916 Canada (2) 76,535 87,622 84,701 29,667 25,614 30,739 China (1) 54,036 54,198 47,856 17,888 11,958 11,896 Other (1) 1,836 2,324 2,831 3,211 4,085 1,590 Total $ 837,398 $ 785,897 $ 698,437 $ 252,851 $ 222,041 $ 177,864 (1) The Performance Materials segment includes the results of Interface and PCC for the periods following the dates of acquisitions of August 31, 2018 and July 12, 2018, respectively. (2) The Technical Nonwovens segment includes results of Geosol through the date of disposition of May 9, 2019. (3) Included in the Technical Nonwovens segment and Eliminations and Other is $21.0 million , $22.2 million and $26.5 million of intercompany sales to the Thermal Acoustical Solutions segment for the years ended December 31, 2019 , 2018 and 2017 , respectively. (4) Effective January 1, 2019, the Company adopted ASU 2016-02, "Leases (Topic 842)", requiring the Company to recognize right-of-use assets totaling $23.1 million at December 31, 2019. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Provision for Income Taxes | The provision for income taxes consists of the following: For the years ended December 31, In thousands 2019 2018 2017 Current: Federal $ 3,505 $ 3,739 $ 11,526 State 381 498 956 Foreign 4,479 3,788 2,425 Total Current $ 8,365 $ 8,025 $ 14,907 Deferred: Federal $ (12,481 ) $ 2,646 $ (2,472 ) State (1,442 ) 380 256 Foreign (858 ) (2,598 ) (717 ) Total Deferred (14,781 ) 428 (2,933 ) Provision (Benefit) for income taxes $ (6,416 ) $ 8,453 $ 11,974 |
Schedule of Reconciliation of the Difference between the Actual Provisions for Income Taxes | The following is a reconciliation of the difference between the actual provision for income taxes and the provision computed by applying the federal statutory tax rate on earnings: For the years ended December 31, 2019 2018 2017 Statutory federal income tax rate 21.0 % 21.0 % 35.0 % State income taxes, net of federal benefit 2.7 1.6 1.6 Valuation allowances for deferred tax assets, including state (4.4 ) (1.3 ) 0.1 Research and development credits 0.7 (1.3 ) (1.0 ) Capitalized transaction costs — 0.6 — Domestic production activities deduction — — (1.8 ) Stock based compensation (0.1 ) (0.7 ) (4.4 ) Goodwill Impairment (19.6 ) — — Foreign income taxed at lower rates 2.4 (1.6 ) (2.8 ) Reserves for uncertain tax positions 0.3 — (1.7 ) Repatriation of foreign undistributed earnings — 1.6 1.3 Revaluation of deferred tax liabilities due to federal rate change — — (7.3 ) Pension plan settlement 5.9 — — Other (0.6 ) (0.4 ) 0.5 Effective income tax rate 8.3 % 19.5 % 19.5 % |
Schedule of Net Current and Net Long-Term Deferred Tax Assets and Liabilities by Tax Jurisdiction | The following schedule presents net current and net long-term deferred tax assets and liabilities by tax jurisdiction as of December 31, 2019 and 2018: 2019 2018 Deferred Tax Assets Deferred Tax Assets In thousands Current Long-term Current Long-term Federal $ — $ — $ — $ — State — — — — Foreign — 1,933 — 2,055 Totals $ — $ 1,933 $ — $ 2,055 2019 2018 Deferred Tax Liabilities Deferred Tax Liabilities In thousands Current Long-term Current Long-term Federal $ — $ 26,992 $ — $ 30,193 State — 2,902 — 3,728 Foreign — 4,667 — 5,344 Totals $ — $ 34,561 $ — $ 39,265 |
Schedule of Components of Deferred Tax Asset and Liability | Net deferred tax assets (liabilities) consisted of the following as of December 31, 2019 and 2018 : December 31, In thousands 2019 2018 Deferred tax assets: Accounts receivable $ 377 $ 172 Financial Hedging Instruments 1,491 585 Interest Expense Carryovers 2,371 463 Inventories 1,845 520 Net operating loss carryforwards 8,478 6,095 Operating lease 6,001 — Other accrued liabilities 5,905 2,378 Pension 4,274 5,181 Tax Credits 2,015 1,846 Total deferred tax assets 32,757 17,240 Deferred tax liabilities: Intangible assets 21,990 25,133 Right of use assets 6,001 — Property, plant and equipment 28,177 23,353 Total deferred tax liabilities 56,168 48,486 Valuation allowance 9,217 5,964 Net deferred tax liabilities $ (32,628 ) $ (37,210 ) |
Schedule of Income from Continuing Operations before Income Taxes | For the years ended December 31, 2019 , 2018 and 2017 , (loss) income before income taxes was derived from the following sources: For the years ended December 31, In thousands 2019 2018 2017 United States $ (73,539 ) $ 33,928 $ 54,212 Foreign (3,538 ) 9,337 7,107 Total income before income taxes $ (77,077 ) $ 43,265 $ 61,319 |
Schedule of Reconciliation of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: In thousands 2019 2018 Unrecognized tax benefits at beginning of year $ 3,563 $ 2,526 Decreases relating to positions taken in prior periods (36 ) (298 ) Increases relating to positions taken in prior periods — — Increases relating to current period — 1,584 Decreases due to settlements with tax authorities — (233 ) Decreases due to lapse of statute of limitations (315 ) (16 ) Unrecognized tax benefits at end of year $ 3,212 $ 3,563 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Reconciliation of Weighted Average Shares Used to Determine Basic and Diluted Earnings Per Share | The following table provides a reconciliation of weighted-average shares used to determine basic and diluted earnings per share. For the years ended In thousands 2019 2018 2017 Basic average common shares outstanding 17,271 17,204 17,045 Effect of dilutive options and restricted stock awards — 126 272 Diluted average common shares outstanding 17,271 17,330 17,317 |
Quarterly Financial Informati_2
Quarterly Financial Information (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Results | The following table summarizes quarterly financial results for 2019 and 2018 . In management’s opinion, all material adjustments necessary for a fair statement of the information for such quarters have been reflected. 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter In thousands except per share data 2019 2018 2019 2018 2019 2018 2019 2018 Net sales $ 218,025 $ 191,660 $ 220,811 $ 186,413 $ 205,274 $ 197,886 $ 193,288 $ 209,938 Gross profit $ 42,056 $ 39,507 $ 45,275 $ 36,127 $ 36,356 $ 35,139 $ 28,103 $ 41,872 Net income (loss) $ 3,890 $ 11,054 $ (6,946 ) $ 10,450 $ 3,004 $ 6,256 $ (70,461 ) $ 7,184 Earnings (loss) per share: Basic $ 0.23 $ 0.64 $ (0.40 ) $ 0.61 $ 0.17 $ 0.36 $ (4.07 ) $ 0.42 Diluted $ 0.22 $ 0.64 $ (0.40 ) $ 0.60 $ 0.17 $ 0.36 $ (4.07 ) $ 0.42 |
Schedule of Components of Gross Profit and Net Income (Loss) | The following components are included gross profit and net income for 2019 and 2018 and impact the comparability of each year: 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter In thousands except per share data 2019 2018 2019 2018 2019 2018 2019 2018 Gross profit impact: Inventory step-up purchase accounting adjustments $ — $ — $ — $ — $ — $ 1,390 $ — $ 585 Restructuring, severance and segment consolidation expenses 351 449 42 876 88 400 1,137 169 Net income impact: Inventory step-up purchase accounting adjustments $ — $ — $ — $ — $ — $ 1,077 $ — $ 438 Restructuring, severance and segment consolidation expenses 364 494 93 711 114 409 1,836 527 Goodwill and other long-lived asset impairment charges — — — — — — 64,206 — CEO transition expenses — — — — — — 1,728 — Strategic initiatives expenses 652 87 311 923 — 1,730 161 493 Employee benefit plan settlements — — 14,977 — 142 — (347 ) — Gain on sale from a divestiture — — (1,265 ) — — — — Discrete tax items — — — — — — — 320 |
Changes in Accumulated Other _2
Changes in Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Changes by Classification within Accumulated Other Comprehensive Income (Loss) | The following table discloses the changes by classification within accumulated other comprehensive income (loss) for the period ended December 31, 2019 , 2018 and 2017 : In thousands Foreign Currency Translation Adjustment Defined Benefit Pension Adjustment Gains and Losses on Cash Flow Hedges Total Accumulated Other Comprehensive (Loss) Income Balance at December 31, 2016 $ (27,885 ) $ (20,065 ) $ — $ (47,950 ) Other Comprehensive income 25,664 1,299 (a) 122 (c) 27,085 Amounts reclassified from accumulated other comprehensive loss — 717 (b) — 717 Balance at December 31, 2017 $ (2,221 ) $ (18,049 ) $ 122 $ (20,148 ) Other Comprehensive loss (16,237 ) (4,998 ) (a) (2,096 ) (c) (23,331 ) Amounts reclassified from accumulated other comprehensive loss — 794 (b) — 794 Balance at December 31, 2018 $ (18,458 ) $ (22,253 ) $ (1,974 ) $ (42,685 ) Other Comprehensive income (loss) 436 (222 ) (a) (2,903 ) (c) (2,689 ) Amounts reclassified from accumulated other comprehensive loss — 19,395 (b) — 19,395 Balance at December 31, 2019 $ (18,022 ) $ (3,080 ) $ (4,877 ) $ (25,979 ) (a) Amount represents actuarial gains (losses) arising from the Company's pension and postretirement benefit obligations, excluding the effect of the settlement in 2019. This amount was $(0.2) million , net of less than $0.1 million tax benefit, for 2019 , $(5.0) million , net of a $1.5 million tax benefit, for 2018 and $1.3 million , net of $0.1 million tax expense, for 2017 . (See Note 12) (b) Amount represents the settlement of the Lydall Pension Plan in the second quarter of 2019. This amount was $19.0 million , net of $11.5 million tax benefit. Amount also represents the amortization of actuarial losses to pension expense arising from the Company’s pension and postretirement benefit obligations. This amount was $0.4 million , net of $0.1 million tax benefit during the first five months of fiscal year 2019 prior to the plan settlement, $0.8 million , net of $0.2 million tax benefit in 2018 , and $0.7 million , net of $0.4 million tax benefit in 2017 . (See Note 12) (c) Amount represents unrealized gains (losses) on the fair value of hedging activities, net of taxes, for the years ended December 31, 2019 , 2018 and 2017 . |
Significant Accounting Polici_4
Significant Accounting Policies - Narrative (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accounting Policies [Line Items] | ||||||
Foreign and export sales (as a percent) | 53.10% | 53.50% | 54.20% | |||
Export sales | $ 86,300 | $ 56,800 | $ 55,900 | |||
Sales to automotive market (as a percent) | 42.90% | 46.30% | 48.30% | |||
Cash received from trade receivables sold at time of sale (as a percent) | 90.00% | |||||
Cash received from trade receivables sold when customer payment received (as a percent) | 10.00% | |||||
Fees related to disposal of trade receivables | $ 100 | |||||
Maximum amount subject to Receivables Purchases Agreements | 10,000 | $ 10,000 | $ 10,000 | |||
Maximum aggregate amount subject to Receivables Purchases Agreements | 50,000 | 50,000 | $ 50,000 | |||
Finite-lived intangible asset useful life | 11 years | |||||
Research and development expense | $ 11,200 | $ 10,600 | $ 10,800 | |||
Goodwill impairment | 63,000 | $ 63,000 | ||||
Minimum | ||||||
Accounting Policies [Line Items] | ||||||
Finite-lived intangible asset useful life | 2 years | |||||
Maximum | ||||||
Accounting Policies [Line Items] | ||||||
Finite-lived intangible asset useful life | 17 years | |||||
Sales Revenue | Ford Motor Company | Customer Concentration Risk | ||||||
Accounting Policies [Line Items] | ||||||
Concentration risk (as a percent) | 11.80% | 14.80% | 17.30% | |||
Performance Materials | ||||||
Accounting Policies [Line Items] | ||||||
Goodwill impairment | 63,000 | $ 63,000 | ||||
Trade Receivables | ||||||
Accounting Policies [Line Items] | ||||||
Disposal of assets | 16,000 | $ 16,000 | $ 16,000 | |||
Proceeds from sale of trade receivables | $ 14,900 | |||||
Forecast | ||||||
Accounting Policies [Line Items] | ||||||
Fees related to disposal of trade receivables | $ 1,000 |
Significant Accounting Polici_5
Significant Accounting Policies - Tooling-Related Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Accounting Policies [Line Items] | ||
Total tooling related assets | $ 4,064 | $ 5,718 |
Inventories, net of progress billings and reserves | ||
Accounting Policies [Line Items] | ||
Total tooling related assets | 1,777 | 4,262 |
Prepaid expenses and other current assets | ||
Accounting Policies [Line Items] | ||
Total tooling related assets | 530 | 469 |
Other assets, net | ||
Accounting Policies [Line Items] | ||
Total tooling related assets | $ 1,757 | $ 987 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Narrative (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Disaggregation of Revenue [Line Items] | |
Increase in contract assets | $ 5.2 |
Decrease in contract liabilities | 3.1 |
Revenue recognized | $ 4.5 |
Minimum | |
Disaggregation of Revenue [Line Items] | |
Customer payment terms | 30 days |
Maximum | |
Disaggregation of Revenue [Line Items] | |
Customer payment terms | 90 days |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Contract Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Disaggregation of Revenue [Line Items] | ||
Contract assets | $ 28,245 | $ 23,040 |
Contract liabilities | 1,441 | $ 4,537 |
Accounting Standards Update 2014-09 | ||
Disaggregation of Revenue [Line Items] | ||
Contract assets | 5,205 | |
Contract liabilities | $ (3,096) |
Revenue from Contracts with C_5
Revenue from Contracts with Customers - Disaggregation of Revenue by Geographical Location (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | $ 193,288 | $ 205,274 | $ 220,811 | $ 218,025 | $ 209,938 | $ 197,886 | $ 186,413 | $ 191,660 | $ 837,398 | $ 785,897 | $ 698,437 |
North America | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 555,256 | 509,844 | |||||||||
Europe | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 227,848 | 221,799 | |||||||||
Asia | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 54,294 | 54,254 | |||||||||
Operating Segments | Performance Materials | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 245,480 | 169,217 | 116,669 | ||||||||
Operating Segments | Performance Materials | North America | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 176,094 | 117,313 | |||||||||
Operating Segments | Performance Materials | Europe | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 61,889 | 49,055 | |||||||||
Operating Segments | Performance Materials | Asia | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 7,497 | 2,849 | |||||||||
Operating Segments | Technical Nonwovens | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 255,346 | 277,071 | 269,077 | ||||||||
Operating Segments | Technical Nonwovens | North America | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 157,579 | 167,519 | |||||||||
Operating Segments | Technical Nonwovens | Europe | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 68,456 | 73,912 | |||||||||
Operating Segments | Technical Nonwovens | Asia | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 29,311 | 35,640 | |||||||||
Operating Segments | Thermal Acoustical Solutions | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 361,577 | 365,427 | 342,105 | ||||||||
Operating Segments | Thermal Acoustical Solutions | North America | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 245,870 | 250,133 | |||||||||
Operating Segments | Thermal Acoustical Solutions | Europe | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 98,221 | 99,529 | |||||||||
Operating Segments | Thermal Acoustical Solutions | Asia | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 17,486 | 15,765 | |||||||||
Eliminations and Other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | (25,005) | (25,818) | $ (29,414) | ||||||||
Eliminations and Other | North America | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | (24,287) | (25,121) | |||||||||
Eliminations and Other | Europe | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | (718) | (697) | |||||||||
Eliminations and Other | Asia | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | $ 0 | $ 0 |
Acquisitions and Divestitures -
Acquisitions and Divestitures - Narrative (Details) | May 09, 2019USD ($)annual_payment | Aug. 31, 2018USD ($) | Jul. 12, 2018USD ($) | Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Jun. 30, 2019USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Aug. 30, 2018USD ($) |
Business Acquisition [Line Items] | ||||||||||||||||
Impairment of goodwill and other long-lived assets | $ 64,206,000 | $ 64,206,000 | $ 0 | $ 0 | ||||||||||||
Payments to acquire business, net of cash acquired | (869,000) | 269,972,000 | 323,000 | |||||||||||||
Amortization of intangible assets | 21,500,000 | 9,300,000 | 4,500,000 | |||||||||||||
Interest Expense | 14,262,000 | 6,212,000 | 2,720,000 | |||||||||||||
Gain on sale of business, net of income taxes | 0 | $ (1,265,000) | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | 1,459,000 | 0 | 0 | ||||||
Amended Credit Facility | Revolving Credit Facility | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Maximum borrowing capacity | $ 450,000,000 | 450,000,000 | 450,000,000 | $ 175,000,000 | ||||||||||||
Interface | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Voting interest acquired (as a percent) | 100.00% | |||||||||||||||
Payments to acquire business, net of cash acquired | $ 268,400,000 | |||||||||||||||
Cash acquired from acquisition | 5,200,000 | |||||||||||||||
Working capital adjustment | 1,400,000 | |||||||||||||||
Final purchase price | 267,000,000 | |||||||||||||||
Purchase price borrowings | $ 261,400,000 | |||||||||||||||
Transaction related costs | 3,400,000 | |||||||||||||||
Amortization of intangible assets | 10,200,000 | 9,200,000 | ||||||||||||||
Pro forma net income (loss) | 12,300,000 | 7,100,000 | 13,800,000 | |||||||||||||
Interest Expense | 9,800,000 | $ 3,500,000 | $ 7,100,000 | |||||||||||||
Precision Filtration Division of Precision Custom Coatings | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Payment to acquire business | $ 1,600,000 | |||||||||||||||
Post-closing adjustment | $ 1,600,000 | |||||||||||||||
Texel Geosol, Inc. [Member] | Disposal Group, Held-for-sale or Disposed of by Sale, Not Discontinued Operations [Member] | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Cash purchase price of divestiture | $ 3,000,000 | |||||||||||||||
Consideration withheld | $ 400,000 | |||||||||||||||
Number of annual payments | annual_payment | 3 | |||||||||||||||
Annual payment of consideration withheld | $ 100,000 | |||||||||||||||
Pre-tax gain on sale of business | $ 1,500,000 | |||||||||||||||
Gain on sale of business, net of income taxes | $ 1,300,000 | |||||||||||||||
Performance Materials | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Impairment of goodwill and other long-lived assets | $ 64,206,000 | 64,200,000 | ||||||||||||||
Amortization of intangible assets | $ 12,200,000 |
Acquisitions and Divestitures_2
Acquisitions and Divestitures - Fair Values of Identifiable Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Aug. 31, 2018 | Dec. 31, 2017 |
Business Acquisition [Line Items] | ||||
Goodwill (Note 6) | $ 133,912 | $ 196,963 | $ 68,969 | |
Interface | ||||
Business Acquisition [Line Items] | ||||
Accounts receivable | $ 25,182 | |||
Inventories | 17,013 | |||
Prepaid expenses and other current assets | 2,382 | |||
Property, plant and equipment | 40,902 | |||
Goodwill (Note 6) | 129,749 | |||
Other intangible assets (Note 6) | 106,900 | |||
Other assets | 308 | |||
Total assets acquired, net of cash acquired | 322,436 | |||
Current liabilities | (11,319) | |||
Deferred tax liabilities (Note 16) | (24,081) | |||
Benefit plan liabilities (Note 12) | (19,002) | |||
Other long-term liabilities | (1,031) | |||
Total liabilities assumed | (55,433) | |||
Total purchase price, net of cash acquired | $ 267,003 |
Acquisitions and Divestitures_3
Acquisitions and Divestitures - Unaudited Pro Forma Operating Results (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Business Combinations [Abstract] | |||
Net Sales | $ 837,398 | $ 888,355 | $ 840,040 |
Net Income | $ (70,513) | $ 37,537 | $ 36,773 |
Earnings Per Share [Abstract] | |||
Basic (USD per share) | $ (4.08) | $ 2.18 | $ 2.16 |
Diluted (USD per share) | $ (4.08) | $ 2.17 | $ 2.12 |
Inventories - Summary (Details)
Inventories - Summary (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 36,322 | $ 37,731 |
Work in process | 14,873 | 18,296 |
Finished goods | 29,349 | 28,438 |
Total inventories | $ 80,544 | $ 84,465 |
Inventories - Narrative (Detail
Inventories - Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Gross tooling inventory | $ 1.8 | $ 4.3 |
Property, Plant and Equipment_3
Property, Plant and Equipment, Net - Summary (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, at cost | $ 461,323 | $ 438,619 | |
Accumulated depreciation | (265,586) | (244,098) | |
Accumulated depreciation of finance leases | (143) | (608) | |
Property and equipment, net excluding work in progress | 195,594 | 193,913 | |
Construction in progress | 26,048 | 19,456 | |
Total property, plant and equipment, net | 221,642 | 213,369 | |
Depreciation expense | 27,100 | 23,400 | $ 21,400 |
Land | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, at cost | 6,268 | 6,280 | |
Land | Assets Held under Finance Leases | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, at cost | 225 | 228 | |
Buildings and improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, at cost | $ 107,721 | 104,036 | |
Buildings and improvements | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment useful life | 10 years | ||
Buildings and improvements | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment useful life | 35 years | ||
Buildings and improvements | Assets Held under Finance Leases | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, at cost | $ 0 | 229 | |
Buildings and improvements | Assets Held under Finance Leases | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment useful life | 2 years | ||
Buildings and improvements | Assets Held under Finance Leases | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment useful life | 10 years | ||
Machinery and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, at cost | $ 308,457 | 289,059 | |
Machinery and equipment | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment useful life | 5 years | ||
Machinery and equipment | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment useful life | 25 years | ||
Machinery and equipment | Assets Held under Finance Leases | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, at cost | $ 200 | 1,005 | |
Machinery and equipment | Assets Held under Finance Leases | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment useful life | 8 years | ||
Machinery and equipment | Assets Held under Finance Leases | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment useful life | 10 years | ||
Office equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, at cost | $ 36,905 | 36,110 | |
Office equipment | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment useful life | 2 years | ||
Office equipment | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment useful life | 8 years | ||
Office equipment | Assets Held under Finance Leases | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, at cost | $ 31 | 32 | |
Property, plant and equipment useful life | 5 years | ||
Vehicles | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, at cost | $ 1,516 | $ 1,640 | |
Vehicles | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment useful life | 3 years | ||
Vehicles | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment useful life | 6 years |
Goodwill and Long-Lived Asset_2
Goodwill and Long-Lived Assets - Gross and Net Carrying Amounts of Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Goodwill [Roll Forward] | |||
Goodwill | $ 209,072 | $ 209,123 | |
Accumulated amortization/impairment | (75,160) | (12,160) | |
Currency translation adjustment | (611) | 3,515 | |
Goodwill | 133,912 | 196,963 | $ 68,969 |
Performance Materials | |||
Goodwill [Roll Forward] | |||
Goodwill | 143,658 | 144,626 | |
Accumulated amortization/impairment | (63,000) | 0 | |
Currency translation adjustment | 306 | 190 | |
Goodwill | 80,658 | 144,626 | 13,307 |
Technical Nonwovens | |||
Goodwill [Roll Forward] | |||
Goodwill | 53,254 | 52,337 | |
Accumulated amortization/impairment | 0 | 0 | |
Currency translation adjustment | (917) | 3,325 | |
Goodwill | 53,254 | 52,337 | $ 55,662 |
Thermal Acoustical Solutions | |||
Goodwill [Roll Forward] | |||
Goodwill | 12,160 | 12,160 | |
Accumulated amortization/impairment | (12,160) | (12,160) | |
Goodwill | $ 0 | $ 0 |
Goodwill and Long-Lived Asset_3
Goodwill and Long-Lived Assets - Changes in Carrying Amount of Goodwill by Reporting Unit (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill [Roll Forward] | |||
Beginning Balance | $ 196,963 | $ 68,969 | |
Goodwill addition | (662) | 131,509 | |
Goodwill impairment | $ (63,000) | (63,000) | |
Currency translation adjustment | 611 | (3,515) | |
Ending Balance | 133,912 | 133,912 | 196,963 |
Performance Materials | |||
Goodwill [Roll Forward] | |||
Beginning Balance | 144,626 | 13,307 | |
Goodwill addition | (662) | 131,509 | |
Goodwill impairment | (63,000) | (63,000) | |
Currency translation adjustment | (306) | (190) | |
Ending Balance | 80,658 | 80,658 | 144,626 |
Technical Nonwovens | |||
Goodwill [Roll Forward] | |||
Beginning Balance | 52,337 | 55,662 | |
Goodwill addition | 0 | 0 | |
Goodwill impairment | 0 | 0 | |
Currency translation adjustment | 917 | (3,325) | |
Ending Balance | $ 53,254 | $ 53,254 | $ 52,337 |
Goodwill and Long-Lived Asset_4
Goodwill and Long-Lived Assets - Other Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Amortized intangible assets | ||
Gross Carrying Amount | $ 154,113 | $ 156,703 |
Accumulated Amortization | (38,536) | (20,099) |
Customer relationships | ||
Amortized intangible assets | ||
Gross Carrying Amount | 142,400 | 141,455 |
Accumulated Amortization | (30,648) | (11,453) |
Patents | ||
Amortized intangible assets | ||
Gross Carrying Amount | 759 | 4,333 |
Accumulated Amortization | (607) | (3,816) |
Technology | ||
Amortized intangible assets | ||
Gross Carrying Amount | 2,500 | 2,500 |
Accumulated Amortization | (977) | (810) |
Trade names | ||
Amortized intangible assets | ||
Gross Carrying Amount | 7,293 | 7,235 |
Accumulated Amortization | (5,143) | (2,840) |
License agreements | ||
Amortized intangible assets | ||
Gross Carrying Amount | 610 | 619 |
Accumulated Amortization | (610) | (619) |
Other | ||
Amortized intangible assets | ||
Gross Carrying Amount | 551 | 561 |
Accumulated Amortization | $ (551) | $ (561) |
Goodwill and Long-Lived Asset_5
Goodwill and Long-Lived Assets - Narrative (Details) - USD ($) | Aug. 31, 2018 | Dec. 31, 2019 | Jun. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Goodwill [Line Items] | ||||||
Goodwill addition | $ (662,000) | $ 131,509,000 | ||||
Goodwill impairment | $ 63,000,000 | 63,000,000 | ||||
Gross finite-lived intangible assets | 154,113,000 | 154,113,000 | 156,703,000 | |||
Amortization of intangible assets | 21,500,000 | 9,300,000 | $ 4,500,000 | |||
2020 | 20,800,000 | 20,800,000 | ||||
2021 | 16,300,000 | 16,300,000 | ||||
2022 | 14,400,000 | 14,400,000 | ||||
2023 | 12,700,000 | 12,700,000 | ||||
2024 | 11,300,000 | 11,300,000 | ||||
Thereafter | 40,000,000 | $ 40,000,000 | ||||
Weighted-average useful life of finite-lived intangible assets | 11 years | |||||
Customer relationships | ||||||
Goodwill [Line Items] | ||||||
Gross finite-lived intangible assets | 142,400,000 | $ 142,400,000 | 141,455,000 | |||
Trade names | ||||||
Goodwill [Line Items] | ||||||
Gross finite-lived intangible assets | 7,293,000 | 7,293,000 | 7,235,000 | |||
Interface Performance Materials | ||||||
Goodwill [Line Items] | ||||||
Goodwill addition | (1,300,000) | |||||
Hollingsworth & Vose Company | ||||||
Goodwill [Line Items] | ||||||
Goodwill addition | $ 600,000 | |||||
Interface | ||||||
Goodwill [Line Items] | ||||||
Goodwill expected to be deductible for income tax purposes | 0 | 0 | ||||
Gross finite-lived intangible assets | $ 106,900,000 | |||||
Amortization of intangible assets | 10,200,000 | $ 9,200,000 | ||||
Interface | Customer relationships | ||||||
Goodwill [Line Items] | ||||||
Gross finite-lived intangible assets | $ 103,700,000 | |||||
Weighted average useful lives of acquired assets | 11 years | |||||
Interface | Trade names | ||||||
Goodwill [Line Items] | ||||||
Gross finite-lived intangible assets | $ 3,200,000 | |||||
Technical Nonwovens | ||||||
Goodwill [Line Items] | ||||||
Goodwill addition | 0 | 0 | ||||
Goodwill impairment | 0 | 0 | ||||
Performance Materials | ||||||
Goodwill [Line Items] | ||||||
Goodwill addition | (662,000) | 131,509,000 | ||||
Goodwill impairment | $ 63,000,000 | 63,000,000 | ||||
Amortization of intangible assets | $ 12,200,000 | |||||
Performance Materials | Interface | ||||||
Goodwill [Line Items] | ||||||
Goodwill addition | $ 131,000,000 |
Impairments of Goodwill and O_3
Impairments of Goodwill and Other Long-Lived Assets - Summary (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | ||||
Impairment of goodwill | $ 63,000 | $ 63,000 | ||
Impairment of other long-lived assets | 1,206 | |||
Total impairments | 64,206 | 64,206 | $ 0 | $ 0 |
Performance Materials | ||||
Segment Reporting Information [Line Items] | ||||
Impairment of goodwill | 63,000 | 63,000 | ||
Impairment of other long-lived assets | 1,206 | |||
Total impairments | 64,206 | 64,200 | ||
Technical Nonwovens | ||||
Segment Reporting Information [Line Items] | ||||
Impairment of goodwill | 0 | $ 0 | ||
Impairment of other long-lived assets | 0 | |||
Total impairments | 0 | |||
Thermal Acoustical Solutions | ||||
Segment Reporting Information [Line Items] | ||||
Impairment of goodwill | 0 | |||
Impairment of other long-lived assets | 0 | |||
Total impairments | $ 0 |
Impairments of Goodwill and O_4
Impairments of Goodwill and Other Long-Lived Assets - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||
Impairment of goodwill | $ 63,000 | $ 63,000 | |
Carrying value of property, plant and equipment | 221,642 | 221,642 | $ 213,369 |
Impairment of other long-lived assets | 1,206 | ||
Performance Materials | |||
Segment Reporting Information [Line Items] | |||
Impairment of goodwill | 63,000 | 63,000 | |
Impairment of other long-lived assets | 1,206 | ||
Thermal Acoustical Solutions | |||
Segment Reporting Information [Line Items] | |||
Impairment of goodwill | 0 | ||
Impairment of other long-lived assets | 0 | ||
Property, Plant and Equipment | Performance Materials | |||
Segment Reporting Information [Line Items] | |||
Carrying value of property, plant and equipment | 3,000 | 3,000 | |
European Plant One | Property, Plant and Equipment | Thermal Acoustical Solutions | |||
Segment Reporting Information [Line Items] | |||
Carrying value of property, plant and equipment | 28,500 | 28,500 | |
European Plant Two | Property, Plant and Equipment | Thermal Acoustical Solutions | |||
Segment Reporting Information [Line Items] | |||
Carrying value of property, plant and equipment | $ 12,500 | $ 12,500 |
Long-term Debt and Financing _3
Long-term Debt and Financing Arrangements - Narrative (Details) | Aug. 31, 2018USD ($) | Dec. 31, 2019USD ($) | Jun. 30, 2023USD ($) | Dec. 31, 2018 | Aug. 30, 2018USD ($) | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||||||
Long-term debt maturing in 2020 | $ 10,000,000 | |||||
Long-term debt maturing in 2021 | 10,000,000 | |||||
Long-term debt maturing in 2022 | 10,000,000 | |||||
Long-term debt maturing in 2023 | $ 243,000,000 | |||||
Weight-average interest rate (as a percent) | 4.30% | 3.40% | 2.20% | |||
Term Loan Due August 31, 2023 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt | $ 200,000,000 | |||||
Amended Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt | 250,000,000 | |||||
Letters of credit outstanding | $ 1,900,000 | |||||
Amended Credit Facility | Term Loan | ||||||
Debt Instrument [Line Items] | ||||||
Borrowings outstanding | 146,100,000 | |||||
Amended Credit Facility | Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | 450,000,000 | $ 450,000,000 | $ 175,000,000 | |||
Maximum borrowing capacity possible value of increase (not to exceed) | $ 150,000,000 | |||||
Minimum fixed charge coverage ratio for preceding 12 month period | 1.25 | |||||
Maximum leverage ratio of credit facility | 3.5 | |||||
Remaining borrowing availability | $ 121,600,000 | |||||
Borrowings outstanding | 273,000,000 | |||||
Debt issuance costs | $ 400,000 | |||||
Amended Credit Facility | Revolving Credit Facility | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Unused borrowing capacity, commitment fee percentage | 0.15% | |||||
Amended Credit Facility | Revolving Credit Facility | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Unused borrowing capacity, commitment fee percentage | 0.275% | |||||
Amended Credit Facility | Revolving Credit Facility | Federal Funds Effective Swap Rate | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread (as a percent) | 0.50% | |||||
Amended Credit Facility | Revolving Credit Facility | Base Rate | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread (as a percent) | 0.00% | |||||
Amended Credit Facility | Revolving Credit Facility | Base Rate | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread (as a percent) | 1.25% | |||||
Amended Credit Facility | Revolving Credit Facility | Eurocurrency Rate | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread (as a percent) | 1.00% | |||||
Amended Credit Facility | Revolving Credit Facility | Eurocurrency Rate | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread (as a percent) | 0.75% | |||||
Amended Credit Facility | Revolving Credit Facility | Eurocurrency Rate | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread (as a percent) | 2.00% | |||||
Amended Credit Facility | Foreign Credit Facilities | ||||||
Debt Instrument [Line Items] | ||||||
Remaining borrowing availability | $ 7,000,000 | |||||
Letters of credit outstanding | $ 2,100,000 | |||||
Subsequent Event | Term Loan Due August 31, 2023 | ||||||
Debt Instrument [Line Items] | ||||||
Periodic payment on debt instrument | $ 2,500,000 |
Long-term Debt and Financing _4
Long-term Debt and Financing Arrangements - Total Outstanding Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | $ 272,641 | $ 324,813 |
Less portion due within one year | (9,928) | (10,172) |
Total long-term debt, net of debt issuance costs | $ 262,713 | 314,641 |
Revolver Loan Due August 31, 2023 | Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Effective Rate (as a percent) | 3.80% | |
Long-term Debt, Gross | $ 126,500 | 138,000 |
Term Loan Due August 31, 2023 | ||
Debt Instrument [Line Items] | ||
Effective Rate (as a percent) | 3.80% | |
Long-term Debt, Gross | $ 146,106 | 186,498 |
Finance Leases | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | $ 35 | $ 315 |
Finance Leases | Minimum | ||
Debt Instrument [Line Items] | ||
Effective Rate (as a percent) | 0.00% | |
Finance Leases | Maximum | ||
Debt Instrument [Line Items] | ||
Effective Rate (as a percent) | 2.09% |
Derivatives - Narrative (Detail
Derivatives - Narrative (Details) € in Millions | 1 Months Ended | 3 Months Ended | |||
Nov. 30, 2018USD ($) | Apr. 30, 2017USD ($) | Dec. 31, 2019USD ($) | Nov. 30, 2019USD ($)derivative_contract | Nov. 30, 2019EUR (€)derivative_contract | |
Interest rate contracts | |||||
Derivative [Line Items] | |||||
Notional amount | $ 139,000,000 | $ 60,000,000 | |||
Term of derivative contract | 5 years | 3 years | |||
Derivative fixed interest rate (as a percent) | 3.09% | 1.58% | |||
Derivative quarterly reduction amount | $ 5,000,000 | ||||
Cross-currency swaps | |||||
Derivative [Line Items] | |||||
Notional amount | $ 25,000,000 | € 22.6 | |||
Number of instruments held | derivative_contract | 3 | 3 | |||
Aggregate notional amount | $ 75,000,000 | € 67.8 |
Derivatives - Fair Value Amount
Derivatives - Fair Value Amounts of Derivative Instruments (Details) - Derivatives designated as hedging instrument - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | $ 2 | $ 179 |
Liability Derivatives | 6,355 | 2,738 |
Interest rate contracts | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 2 | 179 |
Liability Derivatives | 4,538 | 2,738 |
Cross-currency swaps | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 0 | 0 |
Liability Derivatives | $ 1,817 | $ 0 |
Derivatives - Loss Recorded in
Derivatives - Loss Recorded in Accumulated Other Comprehensive Income (Loss) (Details) - Derivatives designated as hedging instrument - Cash flow hedges - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) recognized in other comprehensive income | $ (2,903) | $ (2,096) |
Interest rate contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) recognized in other comprehensive income | (1,500) | (2,096) |
Cross-currency swaps | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) recognized in other comprehensive income | $ (1,403) | $ 0 |
Leases - Narrative (Details)
Leases - Narrative (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Lessee, Lease, Description [Line Items] | |
Termination period of leases | 1 year |
Weighted average discount rate used for operating leases (as a percent) | 4.39% |
Weighted average discount rate used for finance leases (as a percent) | 1.61% |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Remaining lease term | 14 years |
Renewal term of operating leases | 7 years |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Finance lease expense: | |
Amortization of right-of-use assets | $ 81 |
Interest on lease liabilities | 2 |
Operating lease expense | 6,510 |
Short-term lease expense | 918 |
Variable lease expense | 199 |
Total lease expense | $ 7,710 |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Operating leases: | ||
Operating lease right-of-use assets | $ 23,116 | $ 0 |
Short-term lease liabilities, included in Other accrued liabilities | 4,789 | |
Long-term lease liabilities | 18,424 | $ 0 |
Total operating lease liabilities | 23,213 | |
Finance leases: | ||
Property, plant and equipment | 456 | |
Accumulated depreciation | (143) | |
Property, plant and equipment, net | 313 | |
Short-term lease liabilities, included in debt | 35 | |
Long-term lease liabilities, included in debt | 0 | |
Total finance lease liabilities | $ 35 | |
Weighted average remaining lease term: | ||
Operating leases | 7 years 1 month 6 days | |
Finance leases | 20 years 4 months 24 days |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Cash paid for amounts included in the measurement of lease liabilities: | |
Operating cash flows from operating leases | $ 6,301 |
Operating cash flows from finance leases | 2 |
Financing cash flows from finance leases | 240 |
Right-of-use assets obtained in exchange for lease obligations: | |
Operating leases | 1,743 |
Finance leases | $ 0 |
Leases - Undiscounted Future Le
Leases - Undiscounted Future Lease Payments Maturities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | ||
2020 | $ 5,680 | |
2021 | 4,329 | |
2022 | 3,555 | |
2023 | 2,659 | |
2024 | 1,848 | |
Thereafter | 9,465 | |
Total lease payments | 27,536 | |
Less imputed interest | (4,323) | |
Total discounted future lease payments | 23,213 | |
Finance Lease, Liability, Payment, Due [Abstract] | ||
2020 | 36 | |
2021 | 0 | |
2022 | 0 | |
2023 | 0 | |
2024 | 0 | |
Thereafter | 0 | |
Total lease payments | 36 | |
Less imputed interest | (1) | |
Total discounted future lease payments | $ 35 | |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | ||
2019 | $ 6,004 | |
2020 | 4,871 | |
2021 | 3,877 | |
2022 | 3,226 | |
2023 | 2,617 | |
Thereafter | 11,111 | |
Total lease payments | 31,706 | |
Capital Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | ||
2019 | 279 | |
2020 | 35 | |
2021 | 0 | |
2022 | 0 | |
2023 | 0 | |
Thereafter | 0 | |
Total lease payments | $ 314 |
Capital Stock - Narrative (Deta
Capital Stock - Narrative (Details) | 12 Months Ended | |
Dec. 31, 2019stockholder$ / sharesshares | Dec. 31, 2018$ / sharesshares | |
Equity [Abstract] | ||
Preferred stock, par value (USD per share) | $ / shares | $ 0.01 | $ 0.01 |
Preferred stock issued (shares) | 0 | 0 |
Preferred stock authorized (shares) | 500,000 | 500,000 |
Number of stockholders | stockholder | 5,422 | |
Common stock outstanding (shares) | 17,622,191 |
Employer Sponsored Benefit Pl_3
Employer Sponsored Benefit Plans - Narrative (Details) - USD ($) | 3 Months Ended | 4 Months Ended | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2019 | |
Defined Benefit Plan Disclosure [Line Items] | ||||||
Estimated future employer contributions in next fiscal year | $ 2,400,000 | $ 2,400,000 | ||||
Assumed weighted rate of return (as a percent) | 5.20% | |||||
Defined Contribution Plan: | ||||||
Employer Contributions to 401(k) Plan | $ 3,700,000 | $ 2,900,000 | $ 2,600,000 | |||
Matching contribution of employees' gross pay (as a percent) | 5.00% | |||||
Matching contribution of employees' gross pay, first 3% (as a percent) | 100.00% | |||||
Matching contribution of employees' gross pay, remaining 2% (as a percent) | 50.00% | |||||
United States | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Contributions by employer | $ 1,415,000 | 7,500,000 | ||||
Payment for plan settlement | 48,773,000 | 0 | ||||
Outstanding plan obligation | 55,101,000 | $ 102,679,000 | 55,101,000 | 102,679,000 | $ 51,882,000 | |
Pension plan liability | 11,163,000 | 15,227,000 | 11,163,000 | 15,227,000 | ||
Accumulated other comprehensive loss, net of tax | 2,579,000 | 21,850,000 | 2,579,000 | 21,850,000 | ||
Increase in OCI pension adjustment | 19,400,000 | 1,800,000 | ||||
Funded (unfunded) status of plan | (11,163,000) | (15,227,000) | (11,163,000) | (15,227,000) | ||
United States | Minimum | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Future amortization of gain (loss) | 400,000 | 400,000 | ||||
United States | Maximum | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Future amortization of gain (loss) | 600,000 | 600,000 | ||||
Foreign Plan | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Pension plan liability | 5,200,000 | 4,700,000 | 5,200,000 | 4,700,000 | ||
Accumulated other comprehensive loss, net of tax | 900,000 | 400,000 | 900,000 | 400,000 | ||
Interface | United States | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Increase in OCI pension adjustment | 300,000 | 1,800,000 | ||||
Postemployment Retirement Benefits | Interface | United States | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Pension plan liability | 3,600,000 | 4,100,000 | 3,600,000 | 4,100,000 | ||
Benefit expense since acquisition date | 100,000 | 100,000 | ||||
Benefit payments since acquisition date | $ 100,000 | 200,000 | ||||
Pension Plan | United States | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Pre-tax settlement | 25,700,000 | |||||
Contributions by employer | 0 | |||||
Pension Plan | United States | Minimum | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Estimated future employer contributions in next fiscal year | 700,000 | 700,000 | ||||
Pension Plan | United States | Maximum | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Estimated future employer contributions in next fiscal year | 900,000 | 900,000 | ||||
Pension Plan | Interface Pension Plans | United States | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Contributions by employer | 1,400,000 | |||||
Multiemployer Plans, Pension | Pension Plan | United States | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Pre-tax settlement | 500,000 | |||||
Contributions by employer | $ 0 | $ 0 | ||||
Payment for plan settlement | $ 2,200,000 | |||||
Outstanding plan obligation | $ 2,700,000 |
Employer Sponsored Benefit Pl_4
Employer Sponsored Benefit Plans - Plan Assets and Benefit Obligations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Change in benefit obligation: | |||
Service Cost | $ 136 | $ 46 | $ 0 |
Interest cost | 2,886 | 2,595 | 2,058 |
Change in plan assets: | |||
Fair value of plan assets at beginning of year | 87,452 | ||
Fair value of plan assets at end of year | 43,938 | 87,452 | |
Balance sheet amounts: | |||
Noncurrent liabilities | (18,957) | (22,795) | |
United States | |||
Change in benefit obligation: | |||
Net benefit obligation at beginning of year | 102,679 | 51,882 | |
Benefit obligation assumed through acquisition | 0 | 52,392 | |
Service Cost | 136 | 46 | |
Interest cost | 2,132 | 2,595 | |
Actuarial loss/(gain) | 5,149 | (876) | |
Gross benefits paid | (2,932) | (3,360) | |
Net effect of remeasurement | (3,290) | 0 | |
Settlement | (48,773) | 0 | |
Net benefit obligation at end of year | 55,101 | 102,679 | 51,882 |
Change in plan assets: | |||
Fair value of plan assets at beginning of year | 87,452 | 44,174 | |
Fair value of plan assets through acquisition | 0 | 43,230 | |
Actual return/(loss) on plan assets | 6,987 | (4,092) | |
Contributions | 1,415 | 7,500 | |
Gross benefits paid | (2,932) | (3,360) | |
Net effect of remeasurement | (211) | 0 | |
Settlement | (48,773) | 0 | |
Fair value of plan assets at end of year | 43,938 | 87,452 | $ 44,174 |
Net benefit obligation in excess of plan assets | (11,163) | (15,227) | |
Balance sheet amounts: | |||
Current liabilities | (787) | (3,078) | |
Noncurrent liabilities | (10,376) | (12,149) | |
Total liabilities | (11,163) | (15,227) | |
Amounts recognized in accumulated other comprehensive income, net of tax consist of: | |||
Net actuarial loss | 2,579 | 21,850 | |
Net amount recognized | $ 2,579 | $ 21,850 |
Employer Sponsored Benefit Pl_5
Employer Sponsored Benefit Plans - Defined Benefit Pension Plan with an Accumulated Benefit Obligation in Excess of Plan Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Retirement Benefits [Abstract] | ||
Projected benefit obligation | $ 55,101 | $ 102,679 |
Accumulated benefit obligation | 55,101 | 104,188 |
Fair value of plan assets | $ 43,938 | $ 87,452 |
Employer Sponsored Benefit Pl_6
Employer Sponsored Benefit Plans - Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Retirement Benefits [Abstract] | |||
Service cost | $ 136 | $ 46 | $ 0 |
Interest cost | 2,886 | 2,595 | 2,058 |
Expected return on plan assets | (2,601) | (3,339) | (2,376) |
Amortization of actuarial net loss | 464 | 1,024 | 1,092 |
Total net periodic benefit cost | 885 | 326 | 774 |
Settlement loss | 25,247 | 0 | 0 |
Total employer pension plan cost | $ 26,132 | $ 326 | $ 774 |
Employer Sponsored Benefit Pl_7
Employer Sponsored Benefit Plans - Assumptions Used in Determining the Year-End Benefit Obligation and Annual Net Cost (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Benefit Obligation | |||
Discount rate (as a percent) | 3.37% | 3.99% | |
Expected return on plan assets (as a percent) | 5.06% | 4.08% | |
Net Cost | |||
Discount rate (as a percent) | 3.88% | 3.75% | 4.21% |
Expected return on plan assets (as a percent) | 4.65% | 5.79% | 6.30% |
Employer Sponsored Benefit Pl_8
Employer Sponsored Benefit Plans - Target Allocation and the Actual Allocation of Plan Assets (Details) | Dec. 31, 2019 | Dec. 31, 2018 |
Domestic equities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual Allocation of Plan Assets (as a percent) | 38.00% | 16.00% |
International equities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual Allocation of Plan Assets (as a percent) | 25.00% | 11.00% |
Fixed income | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual Allocation of Plan Assets (as a percent) | 18.00% | 49.00% |
Real assets | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual Allocation of Plan Assets (as a percent) | 7.00% | 3.00% |
Hedge fund of funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual Allocation of Plan Assets (as a percent) | 9.00% | 5.00% |
Cash and cash equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual Allocation of Plan Assets (as a percent) | 3.00% | 16.00% |
Minimum | Domestic equities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation (as a percent) | 20.00% | |
Minimum | International equities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation (as a percent) | 15.00% | |
Minimum | Fixed income | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation (as a percent) | 20.00% | |
Minimum | Real assets | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation (as a percent) | 0.00% | |
Minimum | Hedge fund of funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation (as a percent) | 5.00% | |
Minimum | Cash and cash equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation (as a percent) | 0.00% | |
Maximum | Domestic equities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation (as a percent) | 40.00% | |
Maximum | International equities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation (as a percent) | 35.00% | |
Maximum | Fixed income | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation (as a percent) | 45.00% | |
Maximum | Real assets | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation (as a percent) | 10.00% | |
Maximum | Hedge fund of funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation (as a percent) | 15.00% | |
Maximum | Cash and cash equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation (as a percent) | 10.00% |
Employer Sponsored Benefit Pl_9
Employer Sponsored Benefit Plans - Trust Assets at Fair Value (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Defined Benefit Plan Disclosure [Line Items] | ||
Total Assets at Fair Value | $ 43,938 | $ 87,452 |
Measured at NAV | 0 | 28,039 |
Domestic equities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total Assets at Fair Value | 16,729 | 13,941 |
Measured at NAV | 0 | 0 |
International equities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total Assets at Fair Value | 10,903 | 9,547 |
Measured at NAV | 0 | 0 |
Fixed income | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total Assets at Fair Value | 3,724 | 38,704 |
Measured at NAV | 0 | 27,727 |
U.S. government securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total Assets at Fair Value | 2,686 | 2,466 |
Measured at NAV | 0 | 0 |
Corporate and foreign bonds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total Assets at Fair Value | 1,701 | 1,448 |
Measured at NAV | 0 | 0 |
Real assets | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total Assets at Fair Value | 3,010 | 2,808 |
Measured at NAV | 0 | 0 |
Hedge fund of funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total Assets at Fair Value | 4,009 | 4,441 |
Measured at NAV | 0 | 312 |
Cash and cash equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total Assets at Fair Value | 1,176 | 14,097 |
Measured at NAV | 0 | 0 |
Level 1 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total Assets at Fair Value | 38,520 | 53,429 |
Level 1 | Domestic equities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total Assets at Fair Value | 16,729 | 13,941 |
Level 1 | International equities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total Assets at Fair Value | 10,903 | 9,547 |
Level 1 | Fixed income | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total Assets at Fair Value | 3,724 | 10,977 |
Level 1 | U.S. government securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total Assets at Fair Value | 0 | 0 |
Level 1 | Corporate and foreign bonds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total Assets at Fair Value | 0 | 0 |
Level 1 | Real assets | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total Assets at Fair Value | 3,010 | 2,808 |
Level 1 | Hedge fund of funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total Assets at Fair Value | 4,009 | 4,129 |
Level 1 | Cash and cash equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total Assets at Fair Value | 145 | 12,027 |
Level 2 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total Assets at Fair Value | 5,418 | 5,984 |
Level 2 | Domestic equities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total Assets at Fair Value | 0 | 0 |
Level 2 | International equities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total Assets at Fair Value | 0 | 0 |
Level 2 | Fixed income | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total Assets at Fair Value | 0 | 0 |
Level 2 | U.S. government securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total Assets at Fair Value | 2,686 | 2,466 |
Level 2 | Corporate and foreign bonds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total Assets at Fair Value | 1,701 | 1,448 |
Level 2 | Real assets | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total Assets at Fair Value | 0 | 0 |
Level 2 | Hedge fund of funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total Assets at Fair Value | 0 | 0 |
Level 2 | Cash and cash equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total Assets at Fair Value | 1,031 | 2,070 |
Level 3 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total Assets at Fair Value | 0 | 0 |
Level 3 | Domestic equities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total Assets at Fair Value | 0 | 0 |
Level 3 | International equities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total Assets at Fair Value | 0 | 0 |
Level 3 | Fixed income | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total Assets at Fair Value | 0 | 0 |
Level 3 | U.S. government securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total Assets at Fair Value | 0 | 0 |
Level 3 | Corporate and foreign bonds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total Assets at Fair Value | 0 | 0 |
Level 3 | Real assets | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total Assets at Fair Value | 0 | 0 |
Level 3 | Hedge fund of funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total Assets at Fair Value | 0 | 0 |
Level 3 | Cash and cash equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total Assets at Fair Value | $ 0 | $ 0 |
Employer Sponsored Benefit P_10
Employer Sponsored Benefit Plans - Estimated Future Benefit Payments (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Retirement Benefits [Abstract] | |
2020 | $ 5,903 |
2021 | 3,026 |
2022 | 3,065 |
2023 | 3,082 |
2024 | 3,138 |
2025-2028 | $ 15,957 |
Equity Compensation Plans - Nar
Equity Compensation Plans - Narrative (Details) - USD ($) | Apr. 27, 2012 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock based compensation expense | $ 2,900,000 | $ 2,100,000 | $ 4,300,000 | |
Compensation costs capitalized as part of inventory | 0 | 0 | 0 | |
Tax benefit from compensation expense | $ 200,000 | $ 1,300,000 | $ 4,000,000 | |
Options granted (shares) | 242,000 | |||
Weighted-average grant-date fair value of options (USD per share) | $ 19.35 | $ 21.49 | $ 17.91 | |
Options exercised (shares) | 40,147 | 54,316 | 90,897 | |
Total intrinsic value for options exercised | $ 400,000 | $ 1,400,000 | $ 3,600,000 | |
Cash received from exercise of stock option | 400,000 | 900,000 | 1,300,000 | |
Fair value of restrictions lapsed | $ 500,000 | $ 3,200,000 | $ 8,000,000 | |
Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Term of stock awards | 10 years | |||
Options granted (shares) | 242,592 | 245,830 | 99,840 | |
Realized income tax benefit | $ 100,000 | $ 300,000 | $ 1,100,000 | |
Total unrecognized compensation cost | $ 2,700,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Remaining Contractual Term | 3 years | |||
Stock Options | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period of stock awards | 3 years | |||
Stock Options | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period of stock awards | 4 years | |||
Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted-average grant-date fair value of options (USD per share) | $ 20.96 | $ 25.19 | $ 45.18 | |
Total unrecognized compensation cost | $ 4,500,000 | |||
Granted (shares) | 157,000 | |||
Restricted stock forfeited (shares) | 150,365 | 8,440 | 14,045 | |
Weighted average expected amortization period | 2 years 4 months 24 days | |||
Shares paid for tax withholding for share based compensation (shares) | 7,122 | |||
Shares paid for tax withholding for share based compensation, value of shares withheld | $ 200,000 | |||
Time Based Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted (shares) | 97,803 | 71,516 | 22,700 | |
Time Based Restricted Stock | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period of stock awards | 2 years | |||
Time Based Restricted Stock | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period of stock awards | 4 years | |||
Performance Based Restricted Stock Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted (shares) | 59,566 | 99,560 | 52,595 | |
Time-Based Restricted Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted (shares) | 1,245 | 485 | ||
2012 Stock Repurchase Program | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share options and restricted shares authorized (shares) | 1,750,000 | |||
Number of additional shares authorized (shares) | 1,200,000 |
Equity Compensation Plans - Wei
Equity Compensation Plans - Weighted-Average Assumptions (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Risk-free interest rate | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Measurement input of stock options (as a percent) | 0.017 | 0.027 | 0.022 |
Expected life | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Term of stock options | 5 years 3 months 18 days | 5 years 6 months | 5 years 6 months |
Expected volatility | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Measurement input of stock options (as a percent) | 0.37 | 0.34 | 0.33 |
Expected dividend yield | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Measurement input of stock options (as a percent) | 0 | 0 | 0 |
Equity Compensation Plans - Sto
Equity Compensation Plans - Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Shares: | |||
Outstanding at beginning of period (shares) | 623,000 | ||
Granted (shares) | 242,000 | ||
Exercised (shares) | (40,147) | (54,316) | (90,897) |
Forfeited/Cancelled (shares) | (142,000) | ||
Outstanding at end of period (shares) | 683,000 | 623,000 | |
Options exercisable at end of period (shares) | 318,000 | ||
Unvested at end of period (shares) | 365,000 | ||
Weighted-Average Exercise Price: | |||
Outstanding at beginning of period (USD per share) | $ 30.14 | ||
Granted (USD per share) | 19.35 | ||
Exercised (USD per share) | 11.47 | ||
Forfeited/Cancelled (USD per share) | 31.36 | ||
Outstanding at end of period (USD per share) | 27.15 | $ 30.14 | |
Options exercisable at end of period (USD per share) | 33.01 | ||
Unvested at end of period (USD per share) | $ 22.04 | ||
Weighted- Average Remaining Contractual Term (years) | |||
Outstanding at end of period | 7 years 10 months 24 days | ||
Options exercisable at end of period | 6 years 1 month 6 days | ||
Aggregate Intrinsic Value | |||
Outstanding at end of period | $ 688 | ||
Options exercisable at end of period | 372 | ||
Unvested at end of period | $ 316 |
Equity Compensation Plans - Unv
Equity Compensation Plans - Unvested Restricted Shares (Details) - Restricted Stock shares in Thousands | 12 Months Ended |
Dec. 31, 2019$ / sharesshares | |
Shares: | |
Nonvested at beginning of period (shares) | shares | 304 |
Granted (shares) | shares | 157 |
Vested (shares) | shares | (23) |
Forfeited/Cancelled (shares) | shares | (150) |
Nonvested at end of period (shares) | shares | 288 |
Weighted-Average Grant-Date Fair Value: | |
Nonvested at beginning of period (USD per share) | $ / shares | $ 37.02 |
Granted (USD per share) | $ / shares | 20.96 |
Vested (USD per share) | $ / shares | 56.45 |
Forfeited/Cancelled (USD per share) | $ / shares | 38.07 |
Nonvested at end of period (USD per share) | $ / shares | $ 26.13 |
Restructuring - Narrative (Deta
Restructuring - Narrative (Details) - Technical Nonwovens - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Apr. 30, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Restructuring Cost and Reserve [Line Items] | ||||
Estimated pre-tax restructuring expense | $ 3,700 | |||
Restructuring, expected costs resulting in future cash expenditures | 3,300 | |||
Cash paid | $ 3,800 | $ 806 | $ 2,198 | |
Pre-tax restructuring expenses, excluding depreciation | 800 | 2,300 | $ 700 | |
Cost of Sales | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Pre-tax restructuring expenses, excluding depreciation | 600 | 1,900 | ||
Selling, Product Development and Administrative Expenses | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Pre-tax restructuring expenses, excluding depreciation | $ 200 | $ 400 |
Restructuring - Actual and Esti
Restructuring - Actual and Estimated Pre-tax Expenses (Details) - Technical Nonwovens - USD ($) $ in Thousands | 12 Months Ended | 36 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2019 | |
Restructuring Cost and Reserve [Line Items] | ||||
Total expenses | $ 767 | $ 2,297 | $ 662 | $ 3,726 |
Severance and Related Expenses | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total expenses | 145 | 606 | 181 | 932 |
Contract Termination Expenses | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total expenses | 0 | 136 | 154 | 290 |
Facility Exit, Move and Set-up Expenses | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total expenses | $ 622 | $ 1,555 | $ 327 | $ 2,504 |
Restructuring - Accrued Restruc
Restructuring - Accrued Restructuring Costs (Details) - Technical Nonwovens - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Apr. 30, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Restructuring Cost and Reserve [Line Items] | ||||
Pre-tax restructuring expenses, excluding depreciation | $ 767 | $ 2,012 | ||
Cash paid | $ (3,800) | (806) | (2,198) | |
Restructuring reserve | $ 108 | $ 147 | $ 333 |
Segment Information - Narrative
Segment Information - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||||||||||
Impairment of goodwill and other long-lived assets | $ 64,206 | $ 64,206 | $ 0 | $ 0 | |||||||
Amortization of intangible assets | 21,500 | 9,300 | 4,500 | ||||||||
Severance expenses | 1,900 | ||||||||||
Non-cash long-lived asset impairment | 64,206 | 0 | 772 | ||||||||
Net sales | 193,288 | $ 205,274 | $ 220,811 | $ 218,025 | $ 209,938 | $ 197,886 | $ 186,413 | $ 191,660 | 837,398 | 785,897 | 698,437 |
Sales Revenue | Customer Concentration Risk | Ford Motor Company | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | $ 99,100 | $ 116,100 | $ 120,700 | ||||||||
Concentration risk (as a percent) | 11.80% | 14.80% | 17.30% | ||||||||
Corporate | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
CEO Transition Expenses | $ 2,300 | ||||||||||
Strategic initiative expenses | 1,500 | $ 800 | |||||||||
Transaction related costs | $ 3,600 | ||||||||||
Thermal/Acoustical Metals Segment and Thermal/Acoustical Fibers Segment | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Integration related costs | 1,700 | ||||||||||
Technical Nonwovens Segment | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Impairment of goodwill and other long-lived assets | 0 | ||||||||||
Restructuring expenses | 800 | 2,300 | 700 | ||||||||
Purchase accounting adjustments related to inventory step-up | 1,100 | ||||||||||
Thermal/Acoustical Metals Segment and Technical Nonwovens Segment | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Severance expenses | 300 | ||||||||||
Integration related costs | 700 | ||||||||||
Performance Materials | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Impairment of goodwill and other long-lived assets | 64,206 | 64,200 | |||||||||
Amortization of intangible assets | $ 12,200 | ||||||||||
Purchase accounting adjustments related to inventory step-up | $ 2,000 | ||||||||||
Non-cash long-lived asset impairment | $ 800 | ||||||||||
Thermal Acoustical Solutions Segment | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Impairment of goodwill and other long-lived assets | $ 0 |
Segment Information - Net Sales
Segment Information - Net Sales By Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||||||||||
Net sales | $ 193,288 | $ 205,274 | $ 220,811 | $ 218,025 | $ 209,938 | $ 197,886 | $ 186,413 | $ 191,660 | $ 837,398 | $ 785,897 | $ 698,437 |
Operating Segments | Performance Materials Segment | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 245,480 | 169,217 | 116,669 | ||||||||
Operating Segments | Performance Materials Segment | Filtration | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 93,314 | 93,089 | 87,173 | ||||||||
Operating Segments | Performance Materials Segment | Sealing and Advanced Solutions | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 152,166 | 76,128 | 29,496 | ||||||||
Operating Segments | Technical Nonwovens Segment | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 255,346 | 277,071 | 269,077 | ||||||||
Operating Segments | Technical Nonwovens Segment | Industrial Filtration | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 144,320 | 157,606 | 147,087 | ||||||||
Operating Segments | Technical Nonwovens Segment | Advanced Materials | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 111,026 | 119,465 | 121,990 | ||||||||
Operating Segments | Thermal Acoustical Solutions Segment | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 361,577 | 365,427 | 342,105 | ||||||||
Operating Segments | Thermal Acoustical Solutions Segment | Parts | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 326,436 | 328,057 | 318,217 | ||||||||
Operating Segments | Thermal Acoustical Solutions Segment | Tooling | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 35,141 | 37,370 | 23,888 | ||||||||
Eliminations and Other | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | $ (25,005) | $ (25,818) | $ (29,414) |
Segment Information - Classific
Segment Information - Classification of Segments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||
Operating Income | $ (38,825) | $ 49,188 | $ 66,200 |
Total Assets | 785,937 | 872,686 | 560,871 |
Capital Expenditures | 36,433 | 29,630 | 24,915 |
Depreciation and Amortization | 48,623 | 32,731 | 25,939 |
Operating Segments | Performance Materials Segment | |||
Segment Reporting Information [Line Items] | |||
Operating Income | (59,804) | 13,139 | 12,321 |
Total Assets | 325,164 | 414,211 | 72,837 |
Capital Expenditures | 8,914 | 11,288 | 3,610 |
Depreciation and Amortization | 25,118 | 9,006 | 3,996 |
Operating Segments | Technical Nonwovens Segment | |||
Segment Reporting Information [Line Items] | |||
Operating Income | 22,895 | 21,323 | 26,047 |
Total Assets | 242,787 | 242,007 | 271,713 |
Capital Expenditures | 9,345 | 5,864 | 2,903 |
Depreciation and Amortization | 12,702 | 13,877 | 12,625 |
Operating Segments | Thermal Acoustical Solutions Segment | |||
Segment Reporting Information [Line Items] | |||
Operating Income | 23,590 | 38,085 | 53,132 |
Total Assets | 199,218 | 201,509 | 189,301 |
Capital Expenditures | 17,858 | 11,934 | 17,462 |
Depreciation and Amortization | 10,168 | 9,190 | 8,619 |
Corporate | |||
Segment Reporting Information [Line Items] | |||
Operating Income | (25,506) | (23,359) | (25,300) |
Total Assets | 18,768 | 14,959 | 27,020 |
Capital Expenditures | 316 | 544 | 940 |
Depreciation and Amortization | $ 635 | $ 658 | $ 699 |
Segment Information - Net Sal_2
Segment Information - Net Sales by Geographic Area (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||||||||||
Net sales | $ 193,288 | $ 205,274 | $ 220,811 | $ 218,025 | $ 209,938 | $ 197,886 | $ 186,413 | $ 191,660 | $ 837,398 | $ 785,897 | $ 698,437 |
Long-Lived Assets | 252,851 | 222,041 | 252,851 | 222,041 | 177,864 | ||||||
Operating lease right-of-use assets | 23,116 | 0 | 23,116 | 0 | |||||||
Accounting Standards Update 2016-02 | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating lease right-of-use assets | 23,100 | 23,100 | |||||||||
Technical Nonwovens Segment | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Intercompany sales | 21,000 | 22,200 | 26,500 | ||||||||
United States | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 478,720 | 422,222 | 376,086 | ||||||||
Long-Lived Assets | 138,265 | 136,448 | 138,265 | 136,448 | 93,583 | ||||||
France | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 75,313 | 66,579 | 56,214 | ||||||||
Long-Lived Assets | 13,723 | 13,219 | 13,723 | 13,219 | 14,268 | ||||||
Germany | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 124,402 | 125,796 | 105,828 | ||||||||
Long-Lived Assets | 44,116 | 25,873 | 44,116 | 25,873 | 20,872 | ||||||
United Kingdom | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 26,556 | 27,156 | 24,921 | ||||||||
Long-Lived Assets | 5,981 | 4,844 | 5,981 | 4,844 | 4,916 | ||||||
Canada | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 76,535 | 87,622 | 84,701 | ||||||||
Long-Lived Assets | 29,667 | 25,614 | 29,667 | 25,614 | 30,739 | ||||||
China | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 54,036 | 54,198 | 47,856 | ||||||||
Long-Lived Assets | 17,888 | 11,958 | 17,888 | 11,958 | 11,896 | ||||||
Other | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 1,836 | 2,324 | 2,831 | ||||||||
Long-Lived Assets | $ 3,211 | $ 4,085 | $ 3,211 | $ 4,085 | $ 1,590 |
Income Taxes - Components of Pr
Income Taxes - Components of Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Current: | |||
Federal | $ 3,505 | $ 3,739 | $ 11,526 |
State | 381 | 498 | 956 |
Foreign | 4,479 | 3,788 | 2,425 |
Total Current | 8,365 | 8,025 | 14,907 |
Deferred: | |||
Federal | (12,481) | 2,646 | (2,472) |
State | (1,442) | 380 | 256 |
Foreign | (858) | (2,598) | (717) |
Total Deferred | (14,781) | 428 | (2,933) |
Provision (Benefit) for income taxes | $ (6,416) | $ 8,453 | $ 11,974 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of the Difference between the Actual Provisions for Income Taxes (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | |||
Statutory federal income tax rate | 21.00% | 21.00% | 35.00% |
State income taxes, net of federal benefit | 2.70% | 1.60% | 1.60% |
Valuation allowances for deferred tax assets, including state | (4.40%) | (1.30%) | 0.10% |
Research and development credits | 0.70% | (1.30%) | (1.00%) |
Capitalized transaction costs | 0.00% | 0.60% | 0.00% |
Domestic production activities deduction | 0.00% | 0.00% | (1.80%) |
Stock based compensation | (0.10%) | (0.70%) | (4.40%) |
Goodwill Impairment | (19.60%) | 0.00% | 0.00% |
Foreign income taxed at lower rates | 2.40% | (1.60%) | (2.80%) |
Reserves for uncertain tax positions | 0.30% | 0.00% | (1.70%) |
Repatriation of foreign undistributed earnings | 0.00% | 1.60% | 1.30% |
Revaluation of deferred tax liabilities due to federal rate change | 0.00% | 0.00% | (7.30%) |
Pension plan settlement | 5.90% | 0.00% | 0.00% |
Other | (0.60%) | (0.40%) | 0.50% |
Effective income tax rate | 8.30% | 19.50% | 19.50% |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2019 | Jun. 30, 2019 | Dec. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Taxes [Line Items] | ||||||
Goodwill impairment | $ 63,000 | $ 63,000 | ||||
Tax benefit related to reclassification of stranded tax effects | $ 4,500 | |||||
Effective tax rate for income from continuing operations (as a percent) | 8.30% | 19.50% | 19.50% | |||
Change in valuation allowance | $ 600 | |||||
Income tax expense (benefit) related to Tax Reform Act | $ 3,700 | |||||
Income tax expense (benefit) for change in tax rate | 1,700 | |||||
Income tax (benefit) expense | $ (6,416) | 8,453 | 11,974 | |||
Income tax expense (benefit) from domestic production activities deduction | 1,100 | |||||
Income tax expense (benefit) from stock-based compensation | 2,700 | |||||
Income tax expense (benefit) from release of reserves | $ 1,500 | |||||
Undistributed accumulated earnings of foreign subsidiary | 3,400 | 3,400 | ||||
Reasonably expected net unrecognized benefits may be recognized | 1,600 | 1,600 | ||||
Total amount of net unrecognized tax benefits that would affect the effective tax rate if recognized | 3,200 | 3,200 | ||||
Amount of unrecognized tax benefit, if recognized, would be offset | 1,300 | 1,300 | ||||
Income tax penalties and interest accrued related to unrecognized tax benefits | 200 | 200 | $ 100 | |||
China | ||||||
Income Taxes [Line Items] | ||||||
Change in valuation allowance | 300 | |||||
State | ||||||
Income Taxes [Line Items] | ||||||
Operating loss carryforward | 4,000 | 4,000 | ||||
Deferred tax asset not recorded | 4,000 | 4,000 | ||||
State tax credit carry forwards that expire between 2019 and 2033 | 2,100 | 2,100 | ||||
Foreign | China | ||||||
Income Taxes [Line Items] | ||||||
Operating loss carryforward | 7,600 | 7,600 | ||||
Foreign | Germany | ||||||
Income Taxes [Line Items] | ||||||
Operating loss carryforward | 13,700 | 13,700 | ||||
Foreign | Netherlands | ||||||
Income Taxes [Line Items] | ||||||
Operating loss carryforward | 3,400 | 3,400 | ||||
Foreign | India | ||||||
Income Taxes [Line Items] | ||||||
Operating loss carryforward | $ 700 | 700 | ||||
Foreign Tax Error | Restatement Adjustment | ||||||
Income Taxes [Line Items] | ||||||
Income tax (benefit) expense | $ 700 | |||||
Maximum | ||||||
Income Taxes [Line Items] | ||||||
Estimated income tax expense (benefit) from repatriation tax | $ 900 |
Income Taxes - Net Current and
Income Taxes - Net Current and Net Long-Term Deferred Tax Assets and Liabilities by Tax Jurisdiction (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred Tax Assets and Liabilities [Line Items] | ||
Deferred Tax Assets, Current | $ 0 | $ 0 |
Deferred Tax Assets, Long-term | 1,933 | 2,055 |
Deferred Tax Liabilities, Current | 0 | 0 |
Deferred Tax Liabilities, Long-term | 34,561 | 39,265 |
Federal | ||
Deferred Tax Assets and Liabilities [Line Items] | ||
Deferred Tax Assets, Current | 0 | 0 |
Deferred Tax Assets, Long-term | 0 | 0 |
Deferred Tax Liabilities, Current | 0 | 0 |
Deferred Tax Liabilities, Long-term | 26,992 | 30,193 |
State | ||
Deferred Tax Assets and Liabilities [Line Items] | ||
Deferred Tax Assets, Current | 0 | 0 |
Deferred Tax Assets, Long-term | 0 | 0 |
Deferred Tax Liabilities, Current | 0 | 0 |
Deferred Tax Liabilities, Long-term | 2,902 | 3,728 |
Foreign | ||
Deferred Tax Assets and Liabilities [Line Items] | ||
Deferred Tax Assets, Current | 0 | 0 |
Deferred Tax Assets, Long-term | 1,933 | 2,055 |
Deferred Tax Liabilities, Current | 0 | 0 |
Deferred Tax Liabilities, Long-term | $ 4,667 | $ 5,344 |
Income Taxes - Components of De
Income Taxes - Components of Deferred Tax Asset and Liability (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred tax assets: | ||
Accounts receivable | $ 377 | $ 172 |
Financial Hedging Instruments | 1,491 | 585 |
Interest Expense Carryovers | 2,371 | 463 |
Inventories | 1,845 | 520 |
Net operating loss carryforwards | 8,478 | 6,095 |
Operating lease | 6,001 | 0 |
Other accrued liabilities | 5,905 | 2,378 |
Pension | 4,274 | 5,181 |
Tax Credits | 2,015 | 1,846 |
Total deferred tax assets | 32,757 | 17,240 |
Deferred tax liabilities: | ||
Intangible assets | 21,990 | 25,133 |
Right of use assets | 6,001 | 0 |
Property, plant and equipment | 28,177 | 23,353 |
Total deferred tax liabilities | 56,168 | 48,486 |
Valuation allowance | 9,217 | 5,964 |
Net deferred tax liabilities | $ (32,628) | $ (37,210) |
Income Taxes - Income from Cont
Income Taxes - Income from Continuing Operations before Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
United States | $ (73,539) | $ 33,928 | $ 54,212 |
Foreign | (3,538) | 9,337 | 7,107 |
Total income before income taxes | $ (77,077) | $ 43,265 | $ 61,319 |
Income Taxes - Reconciliation_2
Income Taxes - Reconciliation of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Unrecognized tax benefits at beginning of year | $ 3,563 | $ 2,526 |
Decreases relating to positions taken in prior periods | (36) | (298) |
Increases relating to positions taken in prior periods | 0 | 0 |
Increases relating to current period | 0 | 1,584 |
Decreases due to settlements with tax authorities | 0 | (233) |
Decreases due to lapse of statute of limitations | (315) | (16) |
Unrecognized tax benefits at end of year | $ 3,212 | $ 3,563 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) - Rochester, New Hampshire - USD ($) | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2019 | Mar. 31, 2017 | Dec. 31, 2018 | |
Loss Contingencies [Line Items] | |||
Environmental remediation expense | $ 300,000 | $ 200,000 | $ 100,000 |
Environmental Contamination | |||
Loss Contingencies [Line Items] | |||
Environmental remediation expense | 200,000 | ||
Accrual for environmental liability, including revision (fully offset) | $ 0 |
Earnings Per Share - Reconcilia
Earnings Per Share - Reconciliation of Weighted Average Shares used to Determine Basic and Diluted Earnings Per Share (Details) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |||
Basic average common shares outstanding (shares) | 17,271 | 17,204 | 17,045 |
Effect of dilutive options and restricted stock awards (shares) | 0 | 126 | 272 |
Diluted average common shares outstanding (shares) | 17,271 | 17,330 | 17,317 |
Earnings Per Share - Narrative
Earnings Per Share - Narrative (Details) - shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |||
Dilutive stock options excluded from computation of diluted earnings per share (shares) | 54,828 | ||
Stock excluded from computation of diluted earnings per share (shares) | 573,920,000 | 455,515,000 | 44,837,000 |
Quarterly Financial Informati_3
Quarterly Financial Information (Unaudited) - Quarterly Financial Results (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net sales | $ 193,288 | $ 205,274 | $ 220,811 | $ 218,025 | $ 209,938 | $ 197,886 | $ 186,413 | $ 191,660 | $ 837,398 | $ 785,897 | $ 698,437 |
Gross profit | 28,103 | 36,356 | 45,275 | 42,056 | 41,872 | 35,139 | 36,127 | 39,507 | 151,790 | 152,645 | 163,359 |
Net (loss) income | $ (70,461) | $ 3,004 | $ (6,946) | $ 3,890 | $ 7,184 | $ 6,256 | $ 10,450 | $ 11,054 | $ (70,513) | $ 34,944 | $ 49,317 |
Earnings per common share: | |||||||||||
Basic (USD per share) | $ (4.07) | $ 0.17 | $ (0.40) | $ 0.23 | $ 0.42 | $ 0.36 | $ 0.61 | $ 0.64 | $ (4.08) | $ 2.03 | $ 2.89 |
Diluted (USD per share) | $ (4.07) | $ 0.17 | $ (0.40) | $ 0.22 | $ 0.42 | $ 0.36 | $ 0.60 | $ 0.64 | $ (4.08) | $ 2.02 | $ 2.85 |
Quarterly Financial Informati_4
Quarterly Financial Information (Unaudited) - Components of Gross Profit and Net Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Gross profit impact of inventory step-up purchase accounting adjustments | $ 0 | $ 0 | $ 0 | $ 0 | $ 585 | $ 1,390 | $ 0 | $ 0 | |||
Gross profit impact of restructuring, severance, and segment consolidation expenses | 1,137 | 88 | 42 | 351 | 169 | 400 | 876 | 449 | |||
Net income impact of inventory step-up purchase accounting adjustments | 0 | 0 | 0 | 0 | 438 | 1,077 | 0 | 0 | |||
Net income impact of restructuring, severance, and segment consolidation expenses | 1,836 | 114 | 93 | 364 | 527 | 409 | 711 | 494 | |||
Net income impact of long-lived asset impairment charges | 64,206 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||
Net income impact of CEO transition expenses | 1,728 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||
Net income impact of strategic initiatives expenses | 161 | 0 | 311 | 652 | 493 | 1,730 | 923 | 87 | |||
Net income impact of employee benefit plan settlements | (347) | 142 | 14,977 | 0 | 0 | 0 | 0 | 0 | |||
Net income impact of gain on sale from a divestiture | 0 | (1,265) | 0 | 0 | 0 | 0 | 0 | $ 1,459 | $ 0 | $ 0 | |
Net income impact of discrete tax items | $ 0 | $ 0 | $ 0 | $ 0 | $ 320 | $ 0 | $ 0 | $ 0 |
Quarterly Financial Informati_5
Quarterly Financial Information (Unaudited) - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2019 | Sep. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Change in Accounting Estimate [Line Items] | ||||||
Comprehensive income (loss) | $ 16,706 | $ (22,537) | $ 27,802 | |||
Exclusion of Settlement of Pension Plan | ||||||
Change in Accounting Estimate [Line Items] | ||||||
Comprehensive income (loss) | $ 19,000 | $ 19,000 | $ 19,000 |
Changes in Accumulated Other _3
Changes in Accumulated Other Comprehensive Income (Loss) - Summary (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | $ 369,275 | $ 353,396 | $ 273,456 |
Other comprehensive income (loss) | (2,689) | (23,331) | 27,085 |
Amounts reclassified from accumulated other comprehensive loss | 19,395 | 794 | 717 |
Ending balance | 318,420 | 369,275 | 353,396 |
Total Accumulated Other Comprehensive (Loss) Income | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (42,685) | (20,148) | (47,950) |
Ending balance | (25,979) | (42,685) | (20,148) |
Foreign Currency Translation Adjustment | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (18,458) | (2,221) | (27,885) |
Other comprehensive income (loss) | (16,237) | 25,664 | |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 | 0 |
Ending balance | (18,022) | (18,458) | (2,221) |
Defined Benefit Pension Adjustment | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (22,253) | (18,049) | (20,065) |
Other comprehensive income (loss) | (222) | (4,998) | 1,299 |
Amounts reclassified from accumulated other comprehensive loss | 19,395 | 794 | 717 |
Ending balance | (3,080) | (22,253) | (18,049) |
Gains and Losses on Cash Flow Hedges | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (1,974) | 122 | 0 |
Other comprehensive income (loss) | (2,096) | 122 | |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 | 0 |
Ending balance | $ (4,877) | $ (1,974) | $ 122 |
Changes in Accumulated Other _4
Changes in Accumulated Other Comprehensive Income (Loss) - Narrative (Details) - USD ($) $ in Millions | 5 Months Ended | 6 Months Ended | 12 Months Ended | ||
May 31, 2019 | Jun. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||
Amortization of actuarial losses, net of tax | $ 0.4 | $ (19) | $ (0.2) | $ 0.8 | $ 0.7 |
Amortization of actuarial losses, tax expense (benefit) | $ 0.1 | $ 11.5 | $ 0.1 | 0.2 | 0.4 |
Actuarial gains (losses), net of tax | (5) | 1.3 | |||
Actuarial (losses) gains, tax expense (benefit) | $ 1.5 | $ (0.1) |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Allowance for doubtful receivables | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Beginning of Period | $ 1,440 | $ 1,507 | $ 1,429 |
Charges to Costs and Expenses | 1,036 | 785 | 541 |
Charges (Deductions) to Other Accounts | (11) | (58) | 103 |
Deductions | (623) | (794) | (566) |
End of Period | 1,842 | 1,440 | 1,507 |
Tax valuation allowances | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Beginning of Period | 5,964 | 5,709 | 4,903 |
Charges to Costs and Expenses | 3,328 | 3,859 | 886 |
Charges (Deductions) to Other Accounts | (75) | (192) | 394 |
Deductions | 0 | (3,412) | (474) |
End of Period | $ 9,217 | $ 5,964 | $ 5,709 |
Uncategorized Items - ldl-20191
Label | Element | Value |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (183,000) |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 1,598,000 |
Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (183,000) |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 1,598,000 |