Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | Apr. 23, 2019 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | MSA | |
Entity Registrant Name | MSA Safety Inc | |
Entity Central Index Key | 0000066570 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 38,688,532 |
Condensed Consolidated Statemen
Condensed Consolidated Statement of Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Income Statement [Abstract] | ||
Net sales | $ 326,038 | $ 325,894 |
Cost of products sold | 176,056 | 178,555 |
Gross profit | 149,982 | 147,339 |
Selling, general and administrative | 78,429 | 80,250 |
Research and development | 13,705 | 12,548 |
Restructuring charges (Note 4) | 5,831 | 5,274 |
Currency exchange losses, net (Note 6) | 16,961 | 2,008 |
Product liability expense (Note 18) | 2,896 | 2,824 |
Operating income | 32,160 | 44,435 |
Interest expense | 2,360 | 4,781 |
Other income, net | (2,579) | (2,340) |
Total other (income) expense, net | (219) | 2,441 |
Income before income taxes | 32,379 | 41,994 |
Provision for income taxes (Note 10) | 9,003 | 9,505 |
Net income | 23,376 | 32,489 |
Net income attributable to noncontrolling interests | (144) | (118) |
Net income attributable to MSA Safety Incorporated | $ 23,232 | $ 32,371 |
Earnings per share attributable to MSA Safety Incorporated common shareholders: | ||
Basic (in dollars per share) | $ 0.60 | $ 0.85 |
Diluted (in dollars per share) | 0.59 | 0.83 |
Dividends per common share (in dollars per share) | $ 0.38 | $ 0.35 |
Condensed Consolidated Statem_2
Condensed Consolidated Statement of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 23,376 | $ 32,489 |
Other comprehensive income, net of tax: | ||
Foreign currency translation adjustments (Note 6) | 361 | 13,400 |
Pension and post-retirement plan actuarial gains, net of tax (Note 6) | 2,023 | 2,329 |
Unrealized gains on available-for-sale securities (Note 6) | 536 | 0 |
Reclassification of currency translation from accumulated other comprehensive (loss) into net income (Note 6) | 15,359 | 0 |
Total other comprehensive income, net of tax | 18,279 | 15,729 |
Comprehensive income | 41,655 | 48,218 |
Comprehensive income attributable to noncontrolling interests | (287) | (288) |
Comprehensive income attributable to MSA Safety Incorporated | $ 41,368 | $ 47,930 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheet - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Assets | ||
Cash and cash equivalents | $ 107,668 | $ 140,095 |
Trade receivables, less allowance for doubtful accounts of $5,115 and $5,369 | 253,351 | 245,032 |
Inventories (Note 3) | 172,663 | 156,602 |
Investments, short-term (Note 17) | 73,619 | 55,106 |
Prepaid income taxes | 12,252 | 10,769 |
Notes receivable, insurance companies (Note 18) | 3,586 | 3,555 |
Prepaid expenses and other current assets | 49,652 | 45,464 |
Total current assets | 672,791 | 656,623 |
Property, plant and equipment, net (Note 5) | 156,099 | 157,940 |
Operating lease assets, net (Note 14) | 52,020 | 0 |
Prepaid pension cost | 61,500 | 57,568 |
Deferred tax assets (Note 10) | 29,492 | 32,522 |
Goodwill (Note 13) | 415,254 | 413,640 |
Intangible assets (Note 13) | 168,050 | 169,515 |
Notes receivable, insurance companies, noncurrent (Note 18) | 56,368 | 56,012 |
Insurance receivable (Note 18) and other noncurrent assets | 59,794 | 64,192 |
Total assets | 1,671,368 | 1,608,012 |
Liabilities | ||
Notes payable and current portion of long-term debt, net (Note 12) | 20,155 | 20,063 |
Accounts payable | 75,524 | 78,367 |
Employees’ compensation | 33,740 | 51,386 |
Insurance and product liability (Note 18) | 32,429 | 48,688 |
Income taxes payable (Note 10) | 8,208 | 0 |
Warranty reserve (Note 18) and other current liabilities | 96,214 | 83,556 |
Total current liabilities | 266,270 | 282,060 |
Long-term debt, net (Note 12) | 357,304 | 341,311 |
Pensions and other employee benefits | 166,294 | 166,101 |
Noncurrent operating lease liabilities (Note 14) | 41,962 | 0 |
Deferred tax liabilities (Note 10) | 7,613 | 7,164 |
Product liability (Note 18) and other noncurrent liabilities | 168,640 | 171,857 |
Total liabilities | 1,008,083 | 968,493 |
Commitments and contingencies (Note 18) | ||
Equity | ||
Preferred stock, 4 1/2% cumulative, $50 par value (Note 7) | 3,569 | 3,569 |
Common stock, no par value (Note 7) | 213,099 | 211,806 |
Treasury shares, at cost (Note 7) | (302,673) | (298,143) |
Accumulated other comprehensive loss (Note 6) | (204,563) | (218,927) |
Retained earnings | 947,929 | 935,577 |
Total MSA Safety Incorporated shareholders' equity | 657,361 | 633,882 |
Noncontrolling interests | 5,924 | 5,637 |
Total shareholders’ equity | 663,285 | 639,519 |
Total liabilities and shareholders’ equity | $ 1,671,368 | $ 1,608,012 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheet (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Statement of Financial Position [Abstract] | ||
Trade receivables, allowance for doubtful accounts | $ 5,115 | $ 5,369 |
Common stock, par value (dollars per share) | $ 0 | $ 0 |
Preferred Stock | ||
Preferred stock, dividend rate (percentage) | 4.50% | 4.50% |
Preferred stock, par value (dollars per share) | $ 50 | $ 50 |
Condensed Consolidated Statem_3
Condensed Consolidated Statement of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Operating Activities | ||
Net income | $ 23,376 | $ 32,489 |
Depreciation and amortization | 9,326 | 9,671 |
Stock-based compensation (Note 11) | 2,745 | 5,606 |
Pension expense (Note 15) | 48 | 1,488 |
Deferred income tax provision (benefit) (Note 10) | 1,834 | (600) |
Loss on asset dispositions, net | 25 | 17 |
Pension contributions (Note 15) | (1,767) | (1,243) |
Currency exchange losses, net | 16,961 | 2,008 |
Product liability expense (Note 18) | 2,896 | 2,824 |
Collections on insurance receivables and notes receivable, insurance companies (Note 18) | 8,122 | 17,700 |
Product liability payments (Note 18) | (20,003) | (5,600) |
Changes in: | ||
Trade receivables | (7,720) | (6,858) |
Inventories (Note 3) | (16,127) | (14,513) |
Prepaid expenses and other current assets | (8,055) | (1,642) |
Accounts payable and accrued liabilities | (10,523) | (24,372) |
Other noncurrent assets and liabilities | 79 | 378 |
Cash Flow From Operating Activities | 1,217 | 17,353 |
Investing Activities | ||
Capital expenditures | (4,897) | (3,241) |
Purchase of short-term investments (Note 17) | (52,541) | 0 |
Proceeds from maturities of short-term investments (Note 17) | 33,600 | 0 |
Property disposals | 12 | 58 |
Cash Flow Used in Investing Activities | (23,826) | (3,183) |
Financing Activities | ||
Payments on short-term debt, net | 91 | 99 |
Proceeds from long-term debt (Note 12) | 133,000 | 137,500 |
Payments on long-term debt (Note 12) | (119,000) | (147,000) |
Cash dividends paid | (14,652) | (13,390) |
Company stock purchases (Note 7) | (7,446) | (2,673) |
Exercise of stock options (Note 7) | 1,465 | 848 |
Cash Flow Used in Financing Activities | (6,542) | (24,616) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (3,221) | 1,363 |
Decrease in cash, cash equivalents and restricted cash | (32,372) | (9,083) |
Beginning cash, cash equivalents and restricted cash | 140,604 | 137,889 |
Ending cash, cash equivalents and restricted cash | 108,232 | 128,806 |
Supplemental cash flow information: | ||
Cash and cash equivalents | 107,668 | 124,883 |
Restricted cash included in prepaid expenses and other current assets | $ 564 | $ 3,923 |
Condensed Consolidated Statem_4
Condensed Consolidated Statement of Changes in Retained Earnings, Accumulated Other Comprehensive Loss and Noncontrolling Interests - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning Balance | $ 633,882 | |
Net income | 23,232 | $ 32,371 |
Foreign currency translation adjustments | 15,359 | 0 |
Pension and post-retirement plan actuarial gains, net of tax | 2,023 | 2,329 |
Income attributable to noncontrolling interests | (144) | (118) |
Preferred dividends | (10) | (10) |
Ending Balance | 657,361 | |
Retained Earnings | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning Balance | 935,577 | 868,675 |
Net income | 23,376 | 32,489 |
Income attributable to noncontrolling interests | (144) | (118) |
Common dividends | (14,642) | (13,380) |
Preferred dividends | (10) | (10) |
Reclassification due to the adoption of ASU 2018-02 | 3,772 | |
Ending Balance | 947,929 | 887,656 |
Accumulated Other Comprehensive (Loss) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning Balance | (218,927) | (171,762) |
Foreign currency translation adjustments | 361 | 13,400 |
Pension and post-retirement plan actuarial gains, net of tax | 2,023 | 2,329 |
Unrealized net gains on available-for-sale securities (Note 17) | 536 | |
Reclassification from accumulated other comprehensive loss into net income | 15,359 | |
Income attributable to noncontrolling interests | (143) | (170) |
Reclassification due to the adoption of ASU 2018-02 | (3,772) | |
Ending Balance | (204,563) | (156,203) |
Noncontrolling Interests | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning Balance | 5,637 | 4,977 |
Income attributable to noncontrolling interests | 287 | 288 |
Ending Balance | $ 5,924 | $ 5,265 |
Condensed Consolidated Statem_5
Condensed Consolidated Statement of Changes in Retained Earnings, Accumulated Other Comprehensive Loss and Noncontrolling Interests (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Statement of Stockholders' Equity [Abstract] | ||
Tax on pension and post-retirement plan adjustments | $ 666 | $ 1,066 |
Preferred stock, dividends (in dollars per share) | $ 0.5625 | $ 0.5625 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The condensed consolidated financial statements of MSA Safety Incorporated and its subsidiaries ("MSA" or the "Company") are unaudited. These condensed consolidated financial statements include all adjustments, consisting of normal recurring adjustments, considered necessary by management to fairly state the Company's results. Intercompany accounts and transactions have been eliminated. The results reported in these condensed consolidated financial statements are not necessarily indicative of the results that may be expected for the entire year. The December 31, 2018 Condensed Consolidated Balance Sheet data was derived from the audited consolidated balance sheet, but does not include all disclosures required by accounting principles generally accepted in the United States of America (U.S. GAAP). This Form 10-Q report should be read in conjunction with MSA's Form 10-K for the year ended December 31, 2018 , which includes all disclosures required by U.S. GAAP. Reclassifications - Certain reclassifications of prior years' data have been made to conform to the current year presentation. These reclassifications relate to (1) additional captions disclosed within the operating section of the unaudited Condensed Consolidated Statement of Cash Flows but do not change the overall cash flow from operating activities for the prior years as previously reported, and (2) additional captions disclosed for product warranty activity within the table that reconciles the changes in the Company's accrued warranty reserve (Note 18—Contingencies). |
Recently Adopted and Recently I
Recently Adopted and Recently Issued Accounting Standards | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Recently Adopted and Recently Issued Accounting Standards | Recently Adopted and Recently Issued Accounting Standards In February 2016, the FASB issued ASU 2016-02, Leases . This ASU requires lessees to record a right-of-use asset and a liability for virtually all leases. This ASU was adopted on January 1, 2019, using the modified retrospective transition method at the adoption date. Comparative periods presented in our unaudited condensed consolidated financial statements are reported in accordance with ASC 840, Leases. In addition, the Company elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allowed us to carry forward the historical lease classification. The Company also elected the practical expedient to not separate lease and non-lease components for new leases entered into after January 1, 2019 when calculating the lease liability under this ASU. Adoption of this ASU resulted in the recording of lease liabilities of approximately $54 million with the offset to lease right-of-use assets of $54 million . The standard did not materially impact our unaudited Condensed Consolidated Statement of Income and had no impact on our unaudited Condensed Consolidated Statement of Cash Flows. The new standard also requires increased disclosures to help financial statement users better understand the amount, timing and uncertainty of cash flows arising from leases. See additional disclosures in Note 14 — Leases. In June 2016, the FASB issued ASU 2016-13, Allowance for Loan and Lease Losses. This ASU introduces an approach based on expected losses to estimate credit losses on certain types of financial instruments, including loans, held-to-maturity debt securities, loan commitments, financial guarantees and net investments in leases, as well as reinsurance and trade receivables. This ASU will be effective beginning in 2020. Based on a review of its portfolio of financial instruments, the Company has developed a project plan and is in the process of assessing the impact that this ASU will have on our reserve for trade receivables as recorded in our unaudited Condensed Consolidated Balance Sheet. Additionally, we expect the adoption of this ASU to result in additional disclosures. In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment . This ASU simplifies the accounting for goodwill impairments under Step 2 by eliminating the requirement to perform procedures to determine the fair value of the assets and liabilities of the reporting unit, including previously unrecognized assets and liabilities, in order to determine the fair value of the goodwill and any impairment charge to be recognized. Under this ASU, the impairment charge to be recognized should be the amount by which the reporting unit's carrying value exceeds the reporting unit's fair value as calculated under Step 1 provided that the loss recognized should not exceed the total amount of goodwill allocated to the reporting unit. The Company adopted ASU 2017-04 on January 1, 2019 and adoption of this ASU may have a material effect on our unaudited condensed consolidated financial statements in the event that we determine that goodwill for any of our reporting units is impaired. In January 2018, the FASB issued ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income ("AOCI"), which gives entities the option to reclassify to retained earnings the tax effects resulting from the new tax reform legislation commonly known as the Tax Cuts and Jobs Act ("the Act") related to items in AOCI that the FASB refers to as having been stranded in AOCI. The new guidance may be applied retrospectively to each period in which the effect of the Act is recognized in the period of adoption. The Company must adopt this guidance for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. ASU2018-02 requires new disclosures regarding the Company’s accounting policy for releasing the tax effects in accumulated other comprehensive loss and allows the Company to reclassify the effect of remeasuring deferred tax liabilities and assets related to items within accumulated other comprehensive loss using the then newly enacted 21% federal corporate income tax rate. The Company adopted ASU 2018-02 on January 1, 2019 and this adoption resulted in a reclassification that increased retained earnings by $3.8 million , with an offsetting increase to accumulated other comprehensive loss for the same amount. In August 2018, the FASB issued ASU 2018-13, Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement , which improves fair value disclosure requirements by removing disclosures that are not cost beneficial, clarifying disclosures’ specific requirements and adding relevant disclosure requirements. This ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The amendments on changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and the narrative description of measurement uncertainty should be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption. All other amendments should be applied retrospectively to all periods presented upon their effective date. Early adoption is permitted and an entity can choose to early adopt any removed or modified disclosures upon issuance of this ASU and delay adoption of the additional disclosures until their effective date. The Company is still evaluating the impact that the adoption of ASU 2018-13 will have on the unaudited condensed consolidated financial statements. In August 2018, the FASB issued ASU 2018-14, Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans , which improves defined benefit disclosure requirements by removing disclosures that are not cost beneficial, clarifying disclosures’ specific requirements and adding relevant disclosure requirements. This ASU is effective for fiscal years ending after December 15, 2020 and early adoption is permitted. The amendments in this ASU are required to be applied on a retrospective basis to all periods presented. The Company is still evaluating the impact that the adoption of ASU 2018-14 will have on the unaudited condensed consolidated financial statements. In August 2018, the FASB issued ASU 2018-15, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract , which will now allow all cloud computing arrangements classified as service contracts to capitalize certain implementation costs in accordance with ASC 350-40, Intangibles - Goodwill and Other - Internal-Use Software , depending on the project stage within which the costs were incurred. This ASU is effective for fiscal years beginning after December 15, 2019 and interim periods within those fiscal periods. Early adoption of the amendments in this ASU is permitted, including adoption in any interim period and the amendments can be applied either retrospectively or prospectively. In 2018, the Company has adopted this ASU prospectively for all implementation costs incurred related to cloud computing arrangements and the implementation did not have a material impact on our unaudited condensed consolidated financial statements. |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories The following table sets forth the components of inventory: (In thousands) March 31, 2019 December 31, 2018 Finished products $ 75,164 $ 65,965 Work in process 8,517 6,169 Raw materials and supplies 129,248 124,554 Inventories at current cost 212,929 196,688 Less: LIFO valuation (40,266 ) (40,086 ) Total inventories $ 172,663 $ 156,602 |
Restructuring Charges
Restructuring Charges | 3 Months Ended |
Mar. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Charges | Restructuring Charges During the three months ended March 31, 2019 , we recorded restructuring charges of $5.8 million . International segment restructuring charges of $5.7 million during the three months ended March 31, 2019 , were primarily related to severance costs for staff reductions associated with our ongoing initiatives to drive profitable growth. Corporate segment restructuring charges of $0.1 million during the three months ended March 31, 2019 , related primarily to the legal and operational realignment of our U.S. and Canadian operations. During the three months ended March 31, 2018 , we recorded restructuring charges of $5.3 million , respectively. Corporate segment restructuring charges of $2.0 million during the three months ended March 31, 2018 , related primarily to our ongoing review of the Company's legal structure to evaluate potential realignments to better facilitate the execution of our corporate strategy. International segment restructuring charges of $3.3 million during the three months ended March 31, 2018 , were related to severance costs for staff reductions associated with our ongoing initiatives to drive profitable growth in Europe. Activity and reserve balances for restructuring charges by segment were as follows: (In millions) Americas International Corporate Total Reserve balances at December 31, 2017 $ 0.5 $ 3.6 $ — $ 4.1 Restructuring charges 2.3 5.6 5.3 13.2 Currency translation and other adjustments (0.3 ) (0.3 ) — (0.6 ) Cash payments / utilization (2.0 ) (4.9 ) (5.3 ) (12.2 ) Reserve balances at December 31, 2018 $ 0.5 $ 4.0 $ — $ 4.5 Restructuring charges — 5.7 0.1 5.8 Currency translation and other adjustments — (0.1 ) — (0.1 ) Cash payments (0.1 ) (1.9 ) (0.1 ) (2.1 ) Reserve balances at March 31, 2019 $ 0.4 $ 7.7 $ — $ 8.1 |
Property, Plant and Equipment
Property, Plant and Equipment | 3 Months Ended |
Mar. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, Plant and Equipment The following table sets forth the components of property, plant and equipment: (In thousands) March 31, 2019 December 31, 2018 Land $ 3,020 $ 3,188 Buildings 119,051 117,910 Machinery and equipment 387,758 386,690 Construction in progress 26,251 24,044 Total 536,080 531,832 Less: accumulated depreciation (379,981 ) (373,892 ) Net property, plant and equipment $ 156,099 $ 157,940 |
Reclassifications Out of Accumu
Reclassifications Out of Accumulated Other Comprehensive Loss | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Reclassifications Out of Accumulated Other Comprehensive Loss | Reclassifications Out of Accumulated Other Comprehensive Loss During three months ended March 31, 2019 , we recognized non-cash cumulative translation losses of approximately $15.4 million as a result of the approval of our plan to close our South Africa affiliates. This charge is related to the historical translation of the elements of the financial statements for the business from the functional currency to the U.S. Dollar. The translation impact has been historically recorded as currency translation adjustment (“CTA”), a separate component of accumulated other comprehensive loss within the equity section of the unaudited Condensed Consolidated Balance Sheet and has been reclassified into net income during three months ended March 31, 2019 . Changes in accumulated other comprehensive loss were as follows: MSA Safety Incorporated Noncontrolling Interests Three Months Ended March 31, Three Months Ended March 31, (In thousands) 2019 2018 2019 2018 Pension and other post-retirement benefits (a) Balance at beginning of period $ (115,517 ) $ (97,948 ) $ — $ — Amounts reclassified from accumulated other comprehensive loss into net income: Amortization of prior service credit (Note 15) (105 ) (83 ) — — Recognized net actuarial losses (Note 15) 2,794 3,478 — — Tax benefit (666 ) (1,066 ) — — Total amount reclassified from accumulated other comprehensive loss, net of tax, into net income 2,023 2,329 — — Reclassification to retained earnings due to the adoption of ASU 2018-02 (Note 2) (3,772 ) — — — Balance at end of period $ (117,266 ) $ (95,619 ) $ — $ — Available-for-sale securities Balance at beginning of period $ (572 ) $ — $ — $ — Unrealized gains on available-for-sale securities (Note 17) 536 — — — Balance at end of period $ (36 ) $ — $ — $ — Foreign Currency Translation Balance at beginning of period $ (102,838 ) $ (73,814 ) $ 496 $ 801 Reclassification from accumulated other comprehensive loss into net income 15,359 (b) — — — Foreign currency translation adjustments 218 13,230 143 170 Balance at end of period $ (87,261 ) $ (60,584 ) $ 639 $ 971 (a) Reclassifications out of accumulated other comprehensive loss and into net income are included in the computation of net periodic pension and other post-retirement benefit costs (refer to Note 15—Pensions and Other Post-retirement Benefits). (b) Reclassifications into net income relate primarily to the approval of our plan to close our South Africa affiliates as discussed above and are included in Currency exchange losses, net within the unaudited Condensed Consolidated Statement of Income. |
Capital Stock
Capital Stock | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Capital Stock | Capital Stock Preferred Stock - The Company has authorized 100,000 shares of $50 par value 4.5% cumulative preferred nonvoting stock which is callable at $52.50 . There are 71,340 shares issued and 52,878 shares held in treasury at March 31, 2019 . The Treasury shares at cost line on the unaudited Condensed Consolidated Balance Sheet includes $1.8 million related to preferred stock. There were no treasury purchases of preferred stock during the three months ended March 31, 2019 or 2018 . The Company has also authorized 1,000,000 shares of $10 par value second cumulative preferred voting stock. No shares have been issued as of March 31, 2019 . Common Stock - The Company has authorized 180,000,000 shares of no par value common stock. There were 62,081,391 shares issued as of December 31, 2018 . No new shares were issued during three months ended March 31, 2019 or 2018 . There were 38,682,918 and 38,526,523 shares outstanding at March 31, 2019 , and December 31, 2018 , respectively. Treasury Shares - The Company's share repurchase program authorizes up to $100.0 million to repurchase MSA common stock in the open market and in private transactions. The share purchase program has no expiration date. The maximum number of shares that may be purchased is calculated based on the dollars remaining under the program and the respective month-end closing share price. No shares were repurchased under this program during the three months ended March 31, 2019 or 2018 . We do not have any other share repurchase programs. There were 23,398,473 and 23,554,868 Treasury Shares at March 31, 2019 , and December 31, 2018 , respectively. The Company issues Treasury Shares for all share based benefit plans. Shares are issued from Treasury at the average Treasury Share cost on the date of the transaction. There were 230,112 and 111,902 Treasury Shares issued for these purposes during the three months ended March 31, 2019 and 2018 , respectively. Common stock activity is summarized as follows: Three Months Ended March 31, 2019 Three Months Ended March 31, 2018 (In thousands) Common Treasury Common Treasury Balance at beginning of period 211,806 (296,390 ) 194,953 (296,081 ) Stock compensation expense 2,745 — 5,606 — Restricted and performance stock awards (2,411 ) 2,411 (1,102 ) 1,102 Stock options exercised 959 506 545 302 Treasury shares purchased — (7,446 ) — (2,673 ) Balance at end of period 213,099 (300,919 ) 200,002 (297,350 ) |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information We are organized into six geographic operating segments based on management responsibilities. The operating segments have been aggregated (based on economic similarities, the nature of their products, end-user markets and methods of distribution) into three reportable segments: Americas, International, and Corporate. The Americas segment is comprised of our operations in North America and Latin America geographies. The International segment is comprised of our operations of all geographies outside of the Americas. Certain global expenses are allocated to each segment in a manner consistent with where the benefits from the expenses are derived. The Company's sales are allocated to each country based primarily on the destination of the end-customer. Adjusted operating income (loss), adjusted operating margin, adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) and adjusted EBITDA margin are the measures used by the chief operating decision maker to evaluate segment performance and allocate resources. Adjusted operating income (loss) is defined as operating income excluding restructuring charges, currency exchange gains/losses, product liability expense and strategic transaction costs and adjusted operating margin is defined as adjusted operating income (loss) divided by segment sales to external customers. Adjusted EBITDA is defined as adjusted operating income (loss) plus depreciation and amortization and adjusted EBITDA margin is defined as adjusted EBITDA divided by segment sales to external customers. Adjusted operating income (loss), adjusted operating margin, adjusted EBITDA and adjusted EBITDA margin are not recognized terms under U.S. GAAP and therefore do not purport to be alternatives to operating income or operating margin as a measure of operating performance. Further, the Company's measure of adjusted operating income (loss), adjusted operating margin, adjusted EBITDA and adjusted EBITDA margin may not be comparable to similarly titled measures of other companies. Adjusted operating income (loss) and adjusted EBITDA on a consolidated basis is presented in the following table to reconcile the segment operating performance measure to operating income as presented on the unaudited Condensed Consolidated Statement of Income. The accounting principles applied at the operating segment level in determining operating income (loss) are generally the same as those applied at the consolidated financial statement level. Sales and transfers between operating segments are accounted for at market-based transaction prices and are eliminated in consolidation. Reportable segment information is presented in the following table: (In thousands, except percentage amounts) Americas International Corporate Reconciling 1 Consolidated Three Months Ended March 31, 2019 Sales to external customers $ 213,687 $ 112,351 $ — $ — $ 326,038 Intercompany sales 159,262 79,329 — (238,591 ) — Operating income 32,160 Restructuring charges (Note 4) 5,831 Currency exchange losses, net (Note 6) 16,961 Product liability expense (Note 18) 2,896 Strategic transaction costs 456 Adjusted operating income (loss) 54,803 11,040 (7,539 ) — 58,304 Adjusted operating margin % 25.6 % 9.8 % Depreciation and amortization 9,326 Adjusted EBITDA 60,900 14,171 (7,441 ) — 67,630 Adjusted EBITDA % 28.5 % 12.6 % (In thousands, except percentage amounts) Americas International Corporate Reconciling 1 Consolidated Three Months Ended March 31, 2018 Sales to external customers $ 209,129 $ 116,765 $ — $ — $ 325,894 Intercompany sales 34,198 82,379 — (116,577 ) — Operating income 44,435 Restructuring charges (Note 4) 5,274 Currency exchange losses, net (Note 6) 2,008 Product liability expense (Note 18) 2,824 Strategic transaction costs 94 Adjusted operating income (loss) 50,086 12,778 (8,229 ) — 54,635 Adjusted operating margin % 23.9 % 10.9 % Depreciation and amortization 9,671 Adjusted EBITDA 56,225 16,209 (8,128 ) 64,306 Adjusted EBITDA % 26.9 % 13.9 % 1 Reconciling items consist primarily of intercompany eliminations and items not directly attributable to reporting segments. Total sales by product group was as follows: (In thousands, except percentage amounts) Consolidated Americas International Three Months Ended March 31, 2019 Dollars Percent Dollars Percent Dollars Percent Breathing Apparatus $ 75,446 23% $ 50,904 24% $ 24,542 22% Fixed Gas & Flame Detection 60,398 19% 32,930 15% 27,468 24% Firefighter Helmets & Protective Apparel 43,577 13% 35,064 16% 8,513 8% Portable Gas Detection 40,726 13% 26,991 13% 13,735 12% Industrial Head Protection 35,744 11% 27,836 13% 7,908 7% Fall Protection 30,128 9% 17,961 8% 12,167 11% Other 40,019 12% 22,001 11% 18,018 16% Total $ 326,038 100% $ 213,687 100% $ 112,351 100% (In thousands, except percentage amounts) Consolidated Americas International Three Months Ended March 31, 2018 Dollars Percent Dollars Percent Dollars Percent Breathing Apparatus $ 74,618 23% $ 49,333 24% $ 25,285 22% Fixed Gas & Flame Detection 60,931 19% 32,526 15% 28,405 24% Firefighter Helmets & Protective Apparel 44,484 14% 34,754 17% 9,730 8% Portable Gas Detection 42,227 13% 28,762 14% 13,465 12% Industrial Head Protection 34,956 11% 27,841 13% 7,115 6% Fall Protection 25,705 8% 14,109 7% 11,596 10% Other 42,973 12% 21,804 10% 21,169 18% Total $ 325,894 100% $ 209,129 100% $ 116,765 100% |
Earnings per Share
Earnings per Share | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings per Share | Earnings per Share Basic earnings per share attributable to MSA Safety Incorporated common shareholders is computed by dividing net income, after the deduction of preferred stock dividends and undistributed earnings allocated to participating securities, by the weighted average number of common shares outstanding during the period. Diluted earnings per share attributable to MSA Safety Incorporated common shareholders assumes the issuance of common stock for all potentially dilutive share equivalents outstanding not classified as participating securities. Participating securities are defined as unvested stock-based payment awards that contain nonforfeitable rights to dividends. Amounts attributable to MSA Safety Incorporated common shareholders: Three Months Ended March 31, (In thousands, except per share amounts) 2019 2018 Net income $ 23,232 $ 32,371 Preferred stock dividends (10 ) (10 ) Net income available to common equity 23,222 32,361 Dividends and undistributed earnings allocated to participating securities (22 ) (32 ) Net income available to common shareholders 23,200 32,329 Basic weighted-average shares outstanding 38,536 38,216 Stock options and other stock compensation 548 562 Diluted weighted-average shares outstanding 39,084 38,778 Antidilutive stock options — — Earnings per share: Basic $ 0.60 $ 0.85 Diluted $ 0.59 $ 0.83 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company's effective tax rate for the three months ended March 31, 2019 , was 27.8% and differs from the U.S. federal statutory rate of 21% primarily due to non-deductible foreign exchange on entity closures partially offset by certain share-based payments related to the application of ASU 2016-09. The Company's effective tax rate for the three months ended March 31, 2018 , was 22.6% which differs from the U.S. federal statutory rate of 21% primarily due to higher profitability in less favorable tax jurisdictions and a charge for Global Intangible Low-Taxed Income (GILTI), partially offset a tax benefit of related to certain share-based payments related to the application of ASU 2016-09. At March 31, 2019 , the Company had a gross liability for unrecognized tax benefits of $13.2 million . The Company has recognized tax benefits associated with these liabilities of $5.2 million at March 31, 2019 . The gross liability includes amounts associated with prior period foreign tax exposure. The Company recognizes interest related to unrecognized tax benefits in interest expense and penalties in operating expenses. The Company's liability for accrued interest related to uncertain tax positions was $1.6 million at March 31, 2019 . |
Stock Plans
Stock Plans | 3 Months Ended |
Mar. 31, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Plans | Stock Plans The 2016 Management Equity Incentive Plan provides for various forms of stock-based compensation for eligible key employees through May 2026. Management stock-based compensation includes stock options, restricted stock, restricted stock units and performance stock units. The 2017 Non-Employee Directors’ Equity Incentive Plan provides for grants of stock options and restricted stock to non-employee directors through May 2027. We issue treasury shares for stock option exercises, and grants of restricted stock and performance stock. Please refer to Note 7—Capital Stock for further information regarding stock compensation share issuance. Stock compensation expense is as follows: Three Months Ended March 31, (In thousands) 2019 2018 Stock compensation expense $ 2,745 $ 5,606 Income tax benefit 670 1,362 Stock compensation expense, net of income tax benefit $ 2,075 $ 4,244 A summary of stock option activity for the three months ended March 31, 2019 , follows: Shares Weighted Average Exercise Price Outstanding at January 1, 2019 735,001 $ 43.79 Exercised (44,407 ) 36.24 Outstanding at March 31, 2019 690,594 44.28 Exercisable at March 31, 2019 690,594 $ 44.28 Restricted stock and restricted stock units are valued at the market value of the stock on the grant date. A summary of restricted stock and unit activity for the three months ended March 31, 2019 , follows: Shares Weighted Average Grant Date Fair Value Unvested at January 1, 2019 205,449 $ 68.97 Granted 37,320 103.59 Vested (44,421 ) 44.23 Forfeited (1,062 ) 83.33 Unvested at March 31, 2019 197,286 $ 81.38 Performance stock units have a market condition modifier and are valued at an estimated fair value using the Monte Carlo model. The final number of shares to be issued for performance stock units granted in the first quarter of 2019 may range from 0% to 200% of the target award based on achieving the specified performance targets over the performance period plus an additional payout modifier based on total shareholder return (TSR) performance. The following weighted average assumptions were used in the Monte Carlo model for units granted in the first quarter of 2019 with a market condition modifier. Fair value per unit $99.82 Risk-free interest rate 2.47% Expected dividend yield 1.57% Expected volatility 26.6% MSA stock beta 1.094 The risk-free interest rate is based on the U.S. Treasury Constant Maturity rates as of the grant date converted into an implied spot rate yield curve. Expected dividend yield is based on the most recent annualized dividend divided by the one year average closing share price. Expected volatility is based on the ten year historical volatility using daily stock prices. Expected life is based on historical stock option exercise data. A summary of performance stock unit activity for the three months ended March 31, 2019 , follows: Shares Weighted Average Grant Date Fair Value Unvested at January 1, 2019 218,886 $ 68.43 Granted 76,813 100.66 Performance adjustments 77,783 43.77 Vested (139,476 ) 44.75 Unvested at March 31, 2019 234,006 $ 84.93 The performance adjustments above relate to the final number of shares issued for the 2016 Management Performance Units which vested in the first quarter of 2019 at 237.6% of the target award based on cumulative performance against the Operating Margin % and Revenue Growth targets with a payout modifier based upon MSA's Total Shareholder Return during the three year performance period. |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt (In thousands) March 31, 2019 December 31, 2018 2010 Senior Notes payable through 2021, 4.00%, net of debt issuance costs 60,000 $ 60,000 2016 Senior Notes payable through 2031, 3.40%, net of debt issuance costs 71,494 69,604 Senior revolving credit facility maturing in 2023, net of debt issuance costs 245,810 231,707 Total 377,304 361,311 Amounts due within one year, net of debt issuance costs 20,000 20,000 Long-term debt, net of debt issuance costs $ 357,304 $ 341,311 On September 7, 2018, the Company entered into an Amended and Restated Credit Agreement associated with our senior revolving credit facility which extended the term of the revolving credit facility through September 2023 and increased the capacity to $600.0 million . Under this 2018 Amended and Restated Credit Agreement, the Company may elect either a Base rate of interest (“BASE”) or an interest rate based on the London Interbank Offered Rate (“LIBOR”). The BASE is a daily fluctuating per annum rate equal to the highest of (i) 0.00% , (ii) the Prime Rate, (ii) the Federal Funds Open Rate plus one half of one percent ( 0.5% ), (iii) the Overnight Bank Funding Rate, plus one half of one percent ( 0.50% ), or (iv) the Daily Libor Rate plus one percent ( 1.00% ). The Company pays a credit spread of 0 to 175 basis points based on the Company’s net EBITDA leverage ratio and elected rate (BASE or LIBOR). The Company has a weighted average revolver interest rate of 3.46% as of March 31, 2019 . At March 31, 2019 , $349.8 million of the existing $600.0 million senior revolving credit facility was unused, including letters of credit. On January 22, 2016, the Company entered into a multi-currency note purchase and private shelf agreement (the "Notes"), pursuant to which MSA issued notes in an aggregate original principal amount of £54.9 million (approximately $71.5 million at March 31, 2019 ). The Notes are repayable in annual installments of £6.1 million (approximately $7.9 million at March 31, 2019 ), commencing January 22, 2023, with a final payment of any remaining amount outstanding on January 22, 2031. The interest rate on these Notes is fixed at 3.4% . On September 7, 2018, the Company entered into an amended and restated agreement associated with these Notes. Under this 2018 Second Amended and Restated Multi-Currency Note Purchase and Private Shelf Agreement, as amended ("Amended Note Purchase Agreement"), the Company may request from time to time during a three -year period ending September 7, 2021, the issuance of up to $150 million of additional senior notes. There were no amounts borrowed under the Amended Note Purchase Agreement as of March 31, 2019 . On January 4, 2019, the Company entered into an amended and restated agreement associated with the New York Life master note facility dated June 2, 2014. Under this Amended and Restated Master Note Facility ("Amended Note Facility"), the Company may request from time to time during a three -year period ending January 4, 2022, the issuance of up to $150 million of additional senior promissory notes. There were no amounts borrowed under the Amended Note Facility as of March 31, 2019 . Both the Amended Note Purchase Agreement and Amended Note Facility require MSA to comply with specified financial covenants, including a requirement to maintain a minimum fixed charges coverage ratio of not less than 1.50 to 1.00 and a consolidated leverage ratio not to exceed 3.50 to 1.00 ; except during an acquisition period in which case the consolidated net leverage ratio shall not exceed 4.00 to 1.00 ; in each case calculated on the basis of the trailing four fiscal quarters. In addition, the Amended Note Purchase Agreement and Amended Note Facility both contain negative covenants limiting the ability of MSA and its subsidiaries to incur additional indebtedness or issue guarantees, create or incur liens, make loans and investments, make acquisitions, transfer or sell assets, enter into transactions with affiliated parties, make changes in its organizational documents that are materially adverse to lenders or modify the nature of MSA's or its subsidiaries' business. However, the covenants contained in the Amended Note Facility do not apply until promissory notes are issued. The revolving credit facilities require the Company to comply with specified financial covenants. In addition, the credit facilities contain negative covenants limiting the ability of the Company and its subsidiaries to enter into specified transactions. The Company was in compliance with all covenants at March 31, 2019 . The Company had outstanding bank guarantees and standby letters of credit with banks as of March 31, 2019 , totaling $10.2 million , of which $2.7 million relate to the senior revolving credit facility. The letters of credit serve to cover customer requirements in connection with certain sales orders and insurance companies. The full amount of the letters of credit remains unused and available at of March 31, 2019 . The Company is also required to provide cash collateral in connection with certain arrangements. At March 31, 2019 , the Company has $0.6 million of restricted cash in support of these arrangements. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 3 Months Ended |
Mar. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Changes in goodwill during the three months ended March 31, 2019 are as follows: (In thousands) Goodwill Balance at January 1, 2019 $ 413,640 Currency translation 1,614 Balance at March 31, 2019 $ 415,254 At March 31, 2019 , the Company had goodwill of $273.2 million and $142.1 million related to the Americas and International reportable segments, respectively. Changes in intangible assets, net of accumulated amortization during the three months ended March 31, 2019 , are as follows: (In thousands) Intangible Assets Net balance at January 1, 2019 $ 169,515 Amortization expense (2,613 ) Currency translation 1,148 Net balance at March 31, 2019 $ 168,050 At March 31, 2019 , the Company had a trade name with an indefinite life totaling $60.0 million . |
Leases
Leases | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Leases | Leases Effective January 1, 2019, we implemented ASU 2016-02, Leases , which amended authoritative guidance on leases and is codified in ASC Topic 842. The amended guidance requires lessees to recognize most leases on their balance sheets as right-of-use assets along with corresponding lease liabilities. The new standard requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase by the lessee. This classification determines whether lease expense is recognized based on an effective interest method or on a straight-line basis over the term of the lease. The FASB's authoritative guidance provides companies with the option to apply this ASU to new and existing leases within the scope of the guidance as of the beginning of the period of adoption. We elected this transition method of applying the new standard and have recognized right-of-use assets and lease liabilities as of January 1, 2019. Prior period amounts were not adjusted and will continue to be reported under the accounting standards in effect for those periods. The adoption of this standard had a material impact on our unaudited Condensed Consolidated Balance Sheet as of March 31, 2019 due to the capitalization of right-of-use assets and lease liabilities associated with our current operating leases in which we are the lessee. Adoption of the new standard resulted in the recording of additional right-of-use assets and lease liabilities of approximately $54 million and $54 million , respectively, as of January 1, 2019. Upon adoption of the new standard on January 1, 2019, we elected the package of practical expedients provided under the guidance. The practical expedient package applies to leases that commenced prior to adoption of the new standard and permits companies not to reassess whether existing or expired contracts are or contain a lease, the lease classification and any initial direct costs for existing leases. We have elected to not separate the lease and non-lease components within our lease contracts. Therefore, all fixed costs associated with the lease are included in the right-of-use asset and the lease liability. These costs often relate to the payments for a proportionate share of real estate taxes, insurance, common area maintenance and other operating costs in addition to base rent. We did not elect the hindsight practical expedient. At the inception of our contracts we determine if the contract is or contains a lease. A contract is or contains a lease if it conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Right-of-use assets and operating lease liabilities are recognized based on the present value of lease payments over the lease term at commencement. The discount rate for leases is based on the Company's incremental borrowing rate ("IBR"). Our IBR reflects a fully secured rate based on our credit rating, taking into consideration the repayment timing of the lease and any impacts due to the economic environment in which the lease operates. Lease right-of-use assets and liabilities are recognized based on the present value of the fixed future lease payments over the lease term. Lease expense for all operating leases is classified in cost of products sold or selling, general and administrative expense in the unaudited Condensed Consolidated Statement of Income. For finance leases, the amortization of the right-of-use asset is included in depreciation and amortization, and the interest is included in interest expense. As a lessee, we have various operating lease agreements primarily related to real estate, vehicles and office and plant equipment. Our lease payments are largely fixed. Variable lease payments that depend on an index or a rate are included in the lease payments and are measured using the prevailing index or rate at the measurement date, with differences between the calculated lease payment and the actual lease payment being expensed in the period of the change. Other variable lease payments, including utilities, consumption and common area maintenance as well as repairs, maintenance and mileage overages on vehicles, are expensed during the period incurred. Variable lease costs were immaterial for the three months ended March 31, 2019 . A majority of our real estate leases include options to extend the lease and options to early terminate the lease. Leases with an early termination option generally involve a termination payment. If we are reasonably certain to exercise an option to extend a lease, the extension period is included as part of the right-of-use asset and the lease liability. Some of our leases contain residual value guarantees. These are guarantees made to the lessor that the value of an underlying asset returned to the lessor at the end of a lease will be at least a specified amount. Our leases do not contain restrictions or covenants that restrict us from incurring other financial obligations. We do not have any significant leases not yet commenced. For our leases, we have elected to not apply the recognition requirements to leases of less than twelve months. These leases are expensed on a straight-line basis and are not included within the Company's operating lease asset or liability. Lease costs associated with leases of less than twelve months were immaterial for the three months ended March 31, 2019 . We did not have any lease transactions with related parties. Other Information Three Months Ended March 31, (In thousands, except percentage amounts) 2019 Lease cost: Operating lease cost recognized as rent expense $ 3,263 Total lease cost 3,263 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows related to operating leases $ 3,425 Non-cash other information: Right-of-use assets obtained in exchange for new operating lease liabilities $ 1,883 Weighted-average remaining lease term (in years): Operating leases 12 Weighted-average discount rate: Operating leases 4.29 % At March 31, 2019 , future lease payments under operating leases were as follows: (In thousands) Operating Leases Remainder of 2019 $ 8,852 2020 8,941 2021 6,988 2022 4,294 2023 3,843 After 2023 32,744 Total lease payments $ 65,662 Less: Interest 13,870 Present value of operating lease liabilities 51,792 Less: Current operating lease liabilities (a) 9,830 Noncurrent operating lease liabilities $ 41,962 (a) Included in "Warranty reserve and other current liabilities" on the unaudited Condensed Consolidated Balance Sheet. |
Pensions and Other Post-retirem
Pensions and Other Post-retirement Benefits | 3 Months Ended |
Mar. 31, 2019 | |
Retirement Benefits [Abstract] | |
Pensions and Other Post-retirement Benefits | Pensions and Other Post-retirement Benefits Components of net periodic benefit cost consisted of the following: Pension Benefits Other Benefits (In thousands) 2019 2018 2019 2018 Three Months Ended March 31, Service cost $ 2,423 $ 2,891 $ 89 $ 101 Interest cost 4,705 4,219 249 221 Expected return on plan assets (9,653 ) (9,096 ) — — Amortization of prior service credit (4 ) (6 ) (101 ) (77 ) Recognized net actuarial losses 2,577 3,453 217 25 Settlement/curtailment loss (credit) — 27 — (141 ) Net periodic benefit cost (a) 48 1,488 454 129 (a) Components of net periodic benefit cost other than service cost are included in the line item "Other income, net" in the unaudited Condensed Consolidated Statements of Income. We made contributions of $1.8 million and $1.2 million to our pension plans during the three months ended March 31, 2019 and 2018 , respectively. We expect to make total contributions of approximately $7.1 million to our pension plans in 2019 which are primarily associated with our International segment. |
Derivative Financial Instrument
Derivative Financial Instruments | 3 Months Ended |
Mar. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments As part of our currency exchange rate risk management strategy, we may enter into certain derivative foreign currency forward contracts that do not meet the U.S. GAAP criteria for hedge accounting, but which have the impact of partially offsetting certain foreign currency exposures. We account for these forward contracts at fair value and report the related gains or losses in currency exchange losses, net, in the unaudited Condensed Consolidated Statement of Income. The notional amount of open forward contracts was $76.4 million and $72.4 million at March 31, 2019 , and December 31, 2018 , respectively. The following table presents the unaudited Condensed Consolidated Balance Sheet location and fair value of assets and liabilities associated with derivative financial instruments: (In thousands) March 31, 2019 December 31, 2018 Derivatives not designated as hedging instruments: Foreign exchange contracts: other current liabilities $ 1,201 $ 12 Foreign exchange contracts: other current assets 36 488 The following table presents the unaudited Condensed Consolidated Statement of Income location and impact of derivative financial instruments: Loss (Gain) Recognized in Income Three Months Ended March 31, (In thousands) Statement of Income Location 2019 2018 Derivatives not designated as hedging instruments: Foreign exchange contracts Currency exchange losses, net $ 1,262 $ (2,875 ) |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Fair value is defined as 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 fair value hierarchy consists of three broad levels, which gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy are: • Level 1—Observable inputs that reflect unadjusted quoted prices for identical assets or liabilities in active markets. • Level 2—Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. • Level 3—Unobservable inputs for the asset or liability. The valuation methodologies we used to measure financial assets and liabilities include the derivative financial instruments described in Note 16—Derivative Financial Instruments. We estimate the fair value of the derivative financial instruments, consisting of foreign currency forward contracts, based upon valuation models with inputs that generally can be verified by observable market conditions and do not involve significant management judgment. Accordingly, the fair values of the derivative financial instruments are classified within Level 2 of the fair value hierarchy. We value our investments in marketable securities, primarily fixed income, at fair value using quoted market prices for similar securities or pricing models. Accordingly, the fair values of the investments are classified within Level 2 of the fair value hierarchy. The amortized cost basis of our investments was $73.5 million and $55.4 million as of March 31, 2019 and December 31, 2018 , respectively. The fair value was $73.6 million and $55.1 million as of March 31, 2019 and December 31, 2018 , respectively, which was reported in "Investments, short-term" in the accompanying unaudited Condensed Consolidated Balance Sheet. The change in fair value is recorded in other comprehensive income, net of tax. The Company does not intend to sell, nor is it more likely than not that we will be required to sell, these securities prior to recovery of their cost, as such, management believes that any unrealized gains or losses are temporary; therefore, no impairment gains or losses relating to these securities have been recognized. All investments in marketable securities have maturities of one year or less and are currently in an unrealized loss position as of March 31, 2019 . With the exception of fixed rate long-term debt, we believe that the reported carrying amounts of our financial assets and liabilities approximate their fair values. The reported carrying amount of our fixed rate long-term debt (including the current portion) was $131.5 million and $130.0 million at March 31, 2019 , and December 31, 2018 , respectively. The fair value of this debt was $144.7 million and $139.0 million at March 31, 2019 , and December 31, 2018 , respectively. The fair value of this debt was determined using Level 2 inputs by evaluating similarly rated companies with publicly traded bonds where available or current borrowing rates available for financings with similar terms and maturities. |
Contingencies
Contingencies | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies Product liability We face an inherent business risk of exposure to product liability claims arising from the alleged failure of our products to prevent the types of personal injury or death against which they are designed to protect. Product liability claims are categorized as either single incident or cumulative trauma. Single incident product liability claims. Single incident product liability claims involve incidents of short duration that are typically known when they occur and involve observable injuries, which provide an objective basis for quantifying damages. The Company estimates its liability for single incident product liability claims based on expected settlement costs for asserted single incident product liability claims, and an estimate of costs for single incident product liability claims incurred but not reported ("IBNR"). The estimate for IBNR claims is based on experience, sales volumes, and other relevant information. The reserve for single incident product liability claims, which includes asserted single incident product liability claims and IBNR single incident product liability claims, was $3.5 million and $3.6 million at March 31, 2019 and December 31, 2018 , respectively. Single incident product liability expense was $0.2 million during the three months ended March 31, 2019 and $0.3 million during the three months ended March 31, 2018 . Single incident product liability exposures are evaluated on an annual basis, or more frequently if changing circumstances warrant. Adjustments are made to the reserve as appropriate. Cumulative trauma product liability claims. Cumulative trauma product liability claims involve exposures to harmful substances (e.g., silica, asbestos and coal dust) that occurred years ago and may have developed over long periods of time into diseases such as silicosis, asbestosis, mesothelioma, or coal worker’s pneumoconiosis. One of the Company's affiliates Mine Safety Appliances Company, LLC ("MSA LLC") was named as a defendant in 1,481 lawsuits comprised of 2,371 claims as of March 31, 2019 . These lawsuits mainly involve respiratory protection products allegedly manufactured and sold by MSA LLC or its predecessors. The products at issue were manufactured many years ago and are not currently offered by MSA LLC. A summary of cumulative trauma product liability lawsuits and asserted cumulative trauma product liability claims activity is as follows: Three Months Ended March 31, 2019 Year Ended December 31, 2018 Open lawsuits, beginning of period 1,481 1,420 New lawsuits 70 369 Settled and dismissed lawsuits (70 ) (308 ) Open lawsuits, end of period 1,481 1,481 Three Months Ended March 31, 2019 Year Ended December 31, 2018 Asserted claims, beginning of period 2,355 2,242 New claims 87 479 Settled and dismissed claims (71 ) (366 ) Asserted claims, end of period 2,371 2,355 More than half of the open lawsuits at March 31, 2019 , have had a de minimis level of activity over the last 5 years. It is possible that these cases could become active again at any time due to changes in circumstances. Cumulative trauma product liability litigation is inherently unpredictable and MSA LLC's expense with respect to cumulative trauma product liability claims could vary significantly in future periods. Factors that limit MSA LLC's ability to estimate potential liability for cumulative trauma product liability claims include low volumes in the number of claims asserted and resolved (both in general and with respect to particular plaintiffs’ counsel as claims experience can vary significantly among different counsel), inconsistency of claims composition, uncertainty as to if and over what time periods claims might be asserted in the future, and other factors. With respect to the risk associated with any particular case that is filed against MSA LLC, it has typically not been until very late in the legal process that it can be reasonably determined whether it is probable that such a case will ultimately result in a liability. This uncertainty is caused by many factors, including consideration of the applicable statute of limitations, the sufficiency of product identification and other defenses. The complaints initially filed generally have not provided information sufficient to determine if a lawsuit will develop into an actively litigated case. Even when a case is actively litigated, it is often difficult to determine if the lawsuit will be dismissed or otherwise resolved until late in the lawsuit. Moreover, even if it is probable that such a lawsuit will result in a loss, it is often difficult to estimate the amount of actual loss that will be incurred. These actual loss amounts are highly variable and turn on a case-by-case analysis of the relevant facts, including the nature of the injury, the jurisdiction in which the claim is filed, the counsel for the plaintiff and the number of parties in the lawsuit. In addition, there are uncertainties concerning the impact of bankruptcies of other companies that are co-defendants with respect to particular claims and uncertainties surrounding the litigation process in different jurisdictions and from case to case within a particular jurisdiction. Management works with outside legal counsel quarterly to review and assess MSA LLC's exposure to asserted cumulative trauma product liability claims not yet resolved. In addition, in connection with finalizing and reporting its results of operations, management works annually (unless significant changes in trends or new developments warrant an earlier review) with an outside valuation consultant and outside legal counsel to review MSA LLC's exposure to all cumulative trauma product liability claims. The review process for asserted cumulative trauma product liability claims not yet resolved takes into account available facts for those claims, including their number and composition, outcomes of matters resolved during current and prior periods, and variances associated with different groups of claims, plaintiffs' counsel, claims filing trends, and venues, as well as any other relevant information. In August 2017, MSA LLC obtained additional detailed information about a significant number of claims that were then pending against it, including the nature and extent of the alleged injuries, product identification and other factors. MSA LLC subsequently agreed to resolve a substantial number of these claims for $75.2 million , a portion of which was insured. Amounts in excess of estimated insurance recoveries were reflected within Product liability expense in the unaudited Condensed Consolidated Statement of Income. MSA LLC paid a total of $28.6 million during 2018 and $14.3 million during the three months ended March 31, 2019 , related to these settlements. MSA LLC expects to pay the final $7.1 million in the second quarter of 2019. There remains considerable uncertainty in numerous aspects of MSA LLC's potential future claims experience, such as with respect to the number of claims that might be asserted, the alleged severity of those claims and the average settlement values of those claims, and that uncertainty may cause actual claims experience in the future to vary from the current estimate. Numerous uncertainties also exist with respect to factors not specific to MSA LLC’s claims experience, including potential legislative or judicial changes at the federal level or in key states concerning claims adjudication, future bankruptcy proceedings involving key co-defendants, payments from trusts established to compensate claimants, and/or changes in medical science relating to the diagnosis and treatment of cumulative trauma product liability claims. If future estimates of asserted cumulative trauma product liability claims not yet resolved and/or incurred but not reported ("IBNR") cumulative trauma product liability claims are materially higher (lower) than the accrued liability, we will record an appropriate charge (credit) to the unaudited Condensed Consolidated Statement of Income to increase (decrease) the accrued liability. Certain significant assumptions underlying the material components of the accrual for IBNR cumulative trauma product liability claims include MSA LLC's experience related to the following: • The types of illnesses alleged by claimants to give rise to their claims; • The number of claims asserted against MSA LLC; • The propensity of claimants and their counsel asserting cumulative trauma product liability claims to name MSA LLC as a defendant; • The percentage of cumulative trauma product liability claims asserted against MSA LLC that are dismissed without payment; • The average value of settlements paid to claimants; and • The jurisdiction in which claims are asserted. Additional assumptions include the following: • MSA LLC will continue to evaluate and handle cumulative trauma product liability claims in accordance with its existing defense strategy; • The number and effect of co-defendant bankruptcies will not materially change in the future; • No material changes in medical science occur with respect to cumulative trauma product liability claims; and • No material changes in law occur with respect to cumulative trauma product liability claims including, in particular, no material state or federal tort reform actions affecting such claims. Total cumulative trauma product liability reserve was $170.7 million at March 31, 2019 , including $16.7 million for claims settled but not yet paid and related defense costs, and $187.3 million at December 31, 2018 , including $24.5 million for claims settled but not yet paid and related defense costs. This reserve includes estimated amounts for asserted claims not yet resolved and IBNR claims. The amount included in the reserve for IBNR cumulative trauma product liability claims represents the estimated value of such claims if the most likely potential outcome with respect to each of the assumptions described above is applied. Those estimated amounts reflect asbestos, silica and coal dust claims expected to be asserted through the year 2069 and are not discounted to present value. The Company revised its estimates of MSA LLC's potential liability for cumulative trauma product liability claims for the year ended December 31, 2018 as a result of its annual review process. The revisions to the Company’s estimates of potential liability for cumulative trauma product liability claims are based on an assessment of trends in the tort system generally and changes in MSA LLC’s claims experience over the past year, including the number of claims asserted, average value of settlements paid to claimants, the number and percentage of claims resolved with payment, the jurisdiction in which claims are asserted, and the counsel asserting such claims. The reserve does not include amounts which will be spent to defend the claims covered by the reserve. Defense costs are recognized in the unaudited Condensed Consolidated Statement of Income as incurred. There was no interim remeasurement of the cumulative trauma product liability reserve as of March 31, 2019 . At March 31, 2019 , $22.4 million of the total reserve for cumulative trauma product liability claims is recorded in the Insurance and product liability line within other current liabilities in the unaudited Condensed Consolidated Balance Sheet and the remainder, $148.3 million , is recorded in the Product liability and other noncurrent liabilities line. At December 31, 2018 , $38.8 million of the total reserve for cumulative trauma product liability claims is recorded in the Insurance and product liability line within other current liabilities in the unaudited Condensed Consolidated Balance Sheet and the remainder, $148.5 million , is recorded in the Product liability and other noncurrent liabilities line. Because litigation is subject to inherent uncertainties, and unfavorable rulings or developments could occur, there can be no certainty that MSA LLC may not ultimately incur charges in excess of presently recorded liabilities. The reserve for liabilities relating to cumulative trauma product liability claims may be adjusted from time to time based on whether the actual number, types, and settlement value of claims differs from current projections and estimates and other developing facts and circumstances. These adjustments may reflect changes in estimates for asserted cumulative trauma product liability claims not yet resolved and/or IBNR cumulative trauma product liability claims. These adjustments may be material and could materially impact our consolidated financial statements in future periods. Insurance Receivable and Notes Receivable, Insurance Companies In the normal course of business, MSA LLC makes payments to settle various claims and for related defense costs and records receivables for the estimated amounts that are covered by insurance. With respect to cumulative trauma product liability claims, MSA LLC purchased insurance policies for the policy years from 1952-1986 from over 20 different insurance carriers that, subject to some common contract exclusions, provided coverage for cumulative trauma product liability losses and, in many instances, related defense costs (the "Occurrence-Based Policies"). The Occurrence-Based Policies have significant per claim retentions and applicable exclusions for cumulative trauma product liability claims after April 1986. While we continue to pursue reimbursement under certain policies, the vast majority of these insurance policies have been exhausted, settled or converted into negotiated coverage-in-place agreements with the applicable insurers (the "Coverage-In-Place Agreements"). As a result, MSA LLC is now largely self-insured for cumulative trauma product liability claims. Since MSA LLC is now largely self-insured for cumulative trauma product liability claims, additional amounts recorded as insurance receivables will be limited and based on calculating the amounts to be reimbursed pursuant to negotiated Coverage-In-Place Agreements. Various factors could affect the timing and amount of recovery of the insurance receivables, including assumptions regarding claims composition (which are relevant to calculating reimbursement under the terms of certain Coverage-In-Place Agreements) and the extent to which the issuing insurers may become insolvent in the future. Insurance receivables at March 31, 2019 , totaled $64.1 million , of which, $11.5 million is reported in Prepaid expenses and other current assets in the unaudited Condensed Consolidated Balance Sheet and $52.6 million is reported in Insurance receivable and other noncurrent assets. Insurance receivables at December 31, 2018 , totaled $71.7 million , of which $14.8 million was reported in Prepaid expenses and other current assets in the unaudited Condensed Consolidated Balance Sheet and $56.9 million was reported in Insurance receivable and other noncurrent assets. The vast majority of the $64.1 million insurance receivable balance at March 31, 2019 is attributable to reimbursement believed to be due under the terms of signed Coverage-In-Place Agreements. A summary of Insurance receivable balances and activity related to cumulative trauma product liability losses is as follows: (In millions) Three Months Ended March 31, 2019 Year Ended December 31, 2018 Balance beginning of period $ 71.7 $ 134.7 Additions 0.5 19.6 Collections, settlements converted to notes receivable and other adjustments (8.1 ) (82.6 ) Balance end of period $ 64.1 $ 71.7 Additions to insurance receivables in the above table represent insured cumulative trauma product liability losses and related defense costs which we believe are covered by the Occurrence-Based Policies or applicable Coverage-in-Place Agreements. Collections of the receivables primarily occur pursuant to the terms of negotiated agreements with the insurance companies, either in a lump sum, in installments over time, or to reimburse a portion of future expense once incurred (i.e. pursuant to a Coverage-In-Place Agreement). In some cases, payment streams due pursuant to negotiated settlement agreements were converted to formal notes receivable from insurance companies. The notes receivable were recorded as a transfer from the Insurance receivable balance to the Notes receivable, insurance companies (current and noncurrent) in the unaudited Condensed Consolidated Balance Sheet. In cases where the payment stream covers multiple years and there were no contingencies, the present value of the payments was recorded as a transfer from the insurance receivable balance to the Notes receivable, insurance companies (current and long-term) in the unaudited Condensed Consolidated Balance Sheet. Provided the remaining insurance receivable was recoverable through the insurance carriers, no gain or loss was recognized at the time of transfer from Insurance receivable to Notes receivable, insurance companies. Notes receivable from insurance companies at March 31, 2019 , totaled $60.0 million , of which $3.6 million is reported in Notes receivable, insurance companies, current on the unaudited Condensed Consolidated Balance Sheet and $56.4 million is reported in Notes receivable, insurance companies, noncurrent. Notes receivable from insurance companies at December 31, 2018 , totaled $59.6 million , of which $3.6 million was reported in Notes receivable, insurance companies, current in the unaudited Condensed Consolidated Balance Sheet and $56.0 million was reported in Notes receivable, insurance companies, noncurrent. A summary of Notes receivable, insurance companies balances is as follows: (In millions) Three Months Ended March 31, 2019 Year Ended December 31, 2018 Balance beginning of period $ 59.6 $ 76.9 Additions 0.4 1.7 Collections — (19.0 ) Balance end of period $ 60.0 $ 59.6 The collectibility of MSA LLC's insurance receivables and notes receivable is regularly evaluated and we believe that the amounts recorded are probable of collection. The determination that the recorded insurance receivables are probable of collection is based on the terms of the settlement agreements reached with the insurers, assumptions regarding various aspects of the composition of future claims (which are relevant to calculating reimbursement under the terms of certain Coverage-In-Place Agreements), the financial ability of the insurance carriers to pay the claims, and the advice of MSA LLC's outside legal counsel. Total cumulative trauma liability losses were $3.3 million and $3.2 million for the three months ended March 31, 2019 and March 31, 2018 , respectively, primarily related to the defense of cumulative trauma product liability claims. Uninsured cumulative trauma product liability losses, which were included in Product liability expense in the unaudited Condensed Consolidated Statement of Income, were $2.8 million for both the three months ended March 31, 2019 and March 31, 2018 . Insurance Litigation For more than a decade, MSA LLC was engaged in coverage litigation with many of its insurance carriers that issued Occurrence-Based Policies. In July 2010, MSA LLC (as Mine Safety Appliances Company) filed a lawsuit in the Superior Court of the State of Delaware seeking declaratory and other relief concerning the future rights and obligations of MSA LLC and its excess insurance carriers under various insurance policies. During the same time period, MSA LLC was also engaged in coverage disputes with The North River Insurance Company (“North River”) in various courts. Since 2010, MSA LLC reached negotiated resolutions with the vast majority of the insurance carriers once in litigation, including the July 2018 settlement with North River disclosed below. In July 2018, MSA LLC resolved through a negotiated settlement its remaining coverage litigation with North River. As part of this settlement in October 2018, MSA LLC dismissed all claims and appeals against North River in each of the pending coverage actions. This represents a settlement with MSA LLC’s last major Occurrence-Based insurance carrier. Payment under this negotiated settlement was received in the third quarter of 2018 and was accounted for as a reduction of the insurance receivable balance. Product Warranty The Company provides warranties on certain product sales. Product warranty reserves are established in the same period that revenue from the sale of the related products is recognized, or in the period that a specific issue arises as to the functionality of a Company's product. The determination of such reserves requires the Company to make estimates of product return rates and expected costs to repair or to replace the products under warranty. The amounts of the reserves are based on established terms and the Company's best estimate of the amounts necessary to settle future and existing claims on products sold as of the balance sheet date. If actual return rates and/or repair and replacement costs differ significantly from estimates, adjustments to recognize additional cost of sales may be required in future periods. The following table reconciles the changes in the Company's accrued warranty reserve: (In thousands) Three Months Ended March 31, 2019 Year Ended December 31, 2018 Beginning warranty reserve $ 14,214 $ 14,753 Warranty payments (3,198 ) (9,955 ) Warranty claims 301 10,585 Provision for product warranties and other adjustments 2,423 (1,169 ) Ending warranty reserve $ 13,740 $ 14,214 Warranty expense was $2.7 million and $2.6 million for the three months ended March 31, 2019 and 2018 , respectively. |
Recently Adopted and Recently_2
Recently Adopted and Recently Issued Accounting Standards - (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Recently Adopted and Recently Issued Accounting Standards | Recently Adopted and Recently Issued Accounting Standards In February 2016, the FASB issued ASU 2016-02, Leases . This ASU requires lessees to record a right-of-use asset and a liability for virtually all leases. This ASU was adopted on January 1, 2019, using the modified retrospective transition method at the adoption date. Comparative periods presented in our unaudited condensed consolidated financial statements are reported in accordance with ASC 840, Leases. In addition, the Company elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allowed us to carry forward the historical lease classification. The Company also elected the practical expedient to not separate lease and non-lease components for new leases entered into after January 1, 2019 when calculating the lease liability under this ASU. Adoption of this ASU resulted in the recording of lease liabilities of approximately $54 million with the offset to lease right-of-use assets of $54 million . The standard did not materially impact our unaudited Condensed Consolidated Statement of Income and had no impact on our unaudited Condensed Consolidated Statement of Cash Flows. The new standard also requires increased disclosures to help financial statement users better understand the amount, timing and uncertainty of cash flows arising from leases. See additional disclosures in Note 14 — Leases. In June 2016, the FASB issued ASU 2016-13, Allowance for Loan and Lease Losses. This ASU introduces an approach based on expected losses to estimate credit losses on certain types of financial instruments, including loans, held-to-maturity debt securities, loan commitments, financial guarantees and net investments in leases, as well as reinsurance and trade receivables. This ASU will be effective beginning in 2020. Based on a review of its portfolio of financial instruments, the Company has developed a project plan and is in the process of assessing the impact that this ASU will have on our reserve for trade receivables as recorded in our unaudited Condensed Consolidated Balance Sheet. Additionally, we expect the adoption of this ASU to result in additional disclosures. In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment . This ASU simplifies the accounting for goodwill impairments under Step 2 by eliminating the requirement to perform procedures to determine the fair value of the assets and liabilities of the reporting unit, including previously unrecognized assets and liabilities, in order to determine the fair value of the goodwill and any impairment charge to be recognized. Under this ASU, the impairment charge to be recognized should be the amount by which the reporting unit's carrying value exceeds the reporting unit's fair value as calculated under Step 1 provided that the loss recognized should not exceed the total amount of goodwill allocated to the reporting unit. The Company adopted ASU 2017-04 on January 1, 2019 and adoption of this ASU may have a material effect on our unaudited condensed consolidated financial statements in the event that we determine that goodwill for any of our reporting units is impaired. In January 2018, the FASB issued ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income ("AOCI"), which gives entities the option to reclassify to retained earnings the tax effects resulting from the new tax reform legislation commonly known as the Tax Cuts and Jobs Act ("the Act") related to items in AOCI that the FASB refers to as having been stranded in AOCI. The new guidance may be applied retrospectively to each period in which the effect of the Act is recognized in the period of adoption. The Company must adopt this guidance for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. ASU2018-02 requires new disclosures regarding the Company’s accounting policy for releasing the tax effects in accumulated other comprehensive loss and allows the Company to reclassify the effect of remeasuring deferred tax liabilities and assets related to items within accumulated other comprehensive loss using the then newly enacted 21% federal corporate income tax rate. The Company adopted ASU 2018-02 on January 1, 2019 and this adoption resulted in a reclassification that increased retained earnings by $3.8 million , with an offsetting increase to accumulated other comprehensive loss for the same amount. In August 2018, the FASB issued ASU 2018-13, Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement , which improves fair value disclosure requirements by removing disclosures that are not cost beneficial, clarifying disclosures’ specific requirements and adding relevant disclosure requirements. This ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The amendments on changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and the narrative description of measurement uncertainty should be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption. All other amendments should be applied retrospectively to all periods presented upon their effective date. Early adoption is permitted and an entity can choose to early adopt any removed or modified disclosures upon issuance of this ASU and delay adoption of the additional disclosures until their effective date. The Company is still evaluating the impact that the adoption of ASU 2018-13 will have on the unaudited condensed consolidated financial statements. In August 2018, the FASB issued ASU 2018-14, Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans , which improves defined benefit disclosure requirements by removing disclosures that are not cost beneficial, clarifying disclosures’ specific requirements and adding relevant disclosure requirements. This ASU is effective for fiscal years ending after December 15, 2020 and early adoption is permitted. The amendments in this ASU are required to be applied on a retrospective basis to all periods presented. The Company is still evaluating the impact that the adoption of ASU 2018-14 will have on the unaudited condensed consolidated financial statements. In August 2018, the FASB issued ASU 2018-15, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract , which will now allow all cloud computing arrangements classified as service contracts to capitalize certain implementation costs in accordance with ASC 350-40, Intangibles - Goodwill and Other - Internal-Use Software , depending on the project stage within which the costs were incurred. This ASU is effective for fiscal years beginning after December 15, 2019 and interim periods within those fiscal periods. Early adoption of the amendments in this ASU is permitted, including adoption in any interim period and the amendments can be applied either retrospectively or prospectively. In 2018, the Company has adopted this ASU prospectively for all implementation costs incurred related to cloud computing arrangements and the implementation did not have a material impact on our unaudited condensed consolidated financial statements. |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | The following table sets forth the components of inventory: (In thousands) March 31, 2019 December 31, 2018 Finished products $ 75,164 $ 65,965 Work in process 8,517 6,169 Raw materials and supplies 129,248 124,554 Inventories at current cost 212,929 196,688 Less: LIFO valuation (40,266 ) (40,086 ) Total inventories $ 172,663 $ 156,602 |
Restructuring Charges (Tables)
Restructuring Charges (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Activity and Reserve Balance for Restructuring Charges by Segment | Activity and reserve balances for restructuring charges by segment were as follows: (In millions) Americas International Corporate Total Reserve balances at December 31, 2017 $ 0.5 $ 3.6 $ — $ 4.1 Restructuring charges 2.3 5.6 5.3 13.2 Currency translation and other adjustments (0.3 ) (0.3 ) — (0.6 ) Cash payments / utilization (2.0 ) (4.9 ) (5.3 ) (12.2 ) Reserve balances at December 31, 2018 $ 0.5 $ 4.0 $ — $ 4.5 Restructuring charges — 5.7 0.1 5.8 Currency translation and other adjustments — (0.1 ) — (0.1 ) Cash payments (0.1 ) (1.9 ) (0.1 ) (2.1 ) Reserve balances at March 31, 2019 $ 0.4 $ 7.7 $ — $ 8.1 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Components of Property, Plant and Equipment | The following table sets forth the components of property, plant and equipment: (In thousands) March 31, 2019 December 31, 2018 Land $ 3,020 $ 3,188 Buildings 119,051 117,910 Machinery and equipment 387,758 386,690 Construction in progress 26,251 24,044 Total 536,080 531,832 Less: accumulated depreciation (379,981 ) (373,892 ) Net property, plant and equipment $ 156,099 $ 157,940 |
Reclassifications Out of Accu_2
Reclassifications Out of Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Reclassification Out of Accumulated Other Comprehensive Loss | Changes in accumulated other comprehensive loss were as follows: MSA Safety Incorporated Noncontrolling Interests Three Months Ended March 31, Three Months Ended March 31, (In thousands) 2019 2018 2019 2018 Pension and other post-retirement benefits (a) Balance at beginning of period $ (115,517 ) $ (97,948 ) $ — $ — Amounts reclassified from accumulated other comprehensive loss into net income: Amortization of prior service credit (Note 15) (105 ) (83 ) — — Recognized net actuarial losses (Note 15) 2,794 3,478 — — Tax benefit (666 ) (1,066 ) — — Total amount reclassified from accumulated other comprehensive loss, net of tax, into net income 2,023 2,329 — — Reclassification to retained earnings due to the adoption of ASU 2018-02 (Note 2) (3,772 ) — — — Balance at end of period $ (117,266 ) $ (95,619 ) $ — $ — Available-for-sale securities Balance at beginning of period $ (572 ) $ — $ — $ — Unrealized gains on available-for-sale securities (Note 17) 536 — — — Balance at end of period $ (36 ) $ — $ — $ — Foreign Currency Translation Balance at beginning of period $ (102,838 ) $ (73,814 ) $ 496 $ 801 Reclassification from accumulated other comprehensive loss into net income 15,359 (b) — — — Foreign currency translation adjustments 218 13,230 143 170 Balance at end of period $ (87,261 ) $ (60,584 ) $ 639 $ 971 (a) Reclassifications out of accumulated other comprehensive loss and into net income are included in the computation of net periodic pension and other post-retirement benefit costs (refer to Note 15—Pensions and Other Post-retirement Benefits). (b) Reclassifications into net income relate primarily to the approval of our plan to close our South Africa affiliates as discussed above and are included in Currency exchange losses, net within the unaudited Condensed Consolidated Statement of Income. |
Capital Stock - (Tables)
Capital Stock - (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Capital Stock Disclosure | Common stock activity is summarized as follows: Three Months Ended March 31, 2019 Three Months Ended March 31, 2018 (In thousands) Common Treasury Common Treasury Balance at beginning of period 211,806 (296,390 ) 194,953 (296,081 ) Stock compensation expense 2,745 — 5,606 — Restricted and performance stock awards (2,411 ) 2,411 (1,102 ) 1,102 Stock options exercised 959 506 545 302 Treasury shares purchased — (7,446 ) — (2,673 ) Balance at end of period 213,099 (300,919 ) 200,002 (297,350 ) |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Reportable Segment Information | Reportable segment information is presented in the following table: (In thousands, except percentage amounts) Americas International Corporate Reconciling 1 Consolidated Three Months Ended March 31, 2019 Sales to external customers $ 213,687 $ 112,351 $ — $ — $ 326,038 Intercompany sales 159,262 79,329 — (238,591 ) — Operating income 32,160 Restructuring charges (Note 4) 5,831 Currency exchange losses, net (Note 6) 16,961 Product liability expense (Note 18) 2,896 Strategic transaction costs 456 Adjusted operating income (loss) 54,803 11,040 (7,539 ) — 58,304 Adjusted operating margin % 25.6 % 9.8 % Depreciation and amortization 9,326 Adjusted EBITDA 60,900 14,171 (7,441 ) — 67,630 Adjusted EBITDA % 28.5 % 12.6 % (In thousands, except percentage amounts) Americas International Corporate Reconciling 1 Consolidated Three Months Ended March 31, 2018 Sales to external customers $ 209,129 $ 116,765 $ — $ — $ 325,894 Intercompany sales 34,198 82,379 — (116,577 ) — Operating income 44,435 Restructuring charges (Note 4) 5,274 Currency exchange losses, net (Note 6) 2,008 Product liability expense (Note 18) 2,824 Strategic transaction costs 94 Adjusted operating income (loss) 50,086 12,778 (8,229 ) — 54,635 Adjusted operating margin % 23.9 % 10.9 % Depreciation and amortization 9,671 Adjusted EBITDA 56,225 16,209 (8,128 ) 64,306 Adjusted EBITDA % 26.9 % 13.9 % 1 Reconciling items consist primarily of intercompany eliminations and items not directly attributable to reporting segments |
Percentage of Total Sales by Product Group | Total sales by product group was as follows: (In thousands, except percentage amounts) Consolidated Americas International Three Months Ended March 31, 2019 Dollars Percent Dollars Percent Dollars Percent Breathing Apparatus $ 75,446 23% $ 50,904 24% $ 24,542 22% Fixed Gas & Flame Detection 60,398 19% 32,930 15% 27,468 24% Firefighter Helmets & Protective Apparel 43,577 13% 35,064 16% 8,513 8% Portable Gas Detection 40,726 13% 26,991 13% 13,735 12% Industrial Head Protection 35,744 11% 27,836 13% 7,908 7% Fall Protection 30,128 9% 17,961 8% 12,167 11% Other 40,019 12% 22,001 11% 18,018 16% Total $ 326,038 100% $ 213,687 100% $ 112,351 100% (In thousands, except percentage amounts) Consolidated Americas International Three Months Ended March 31, 2018 Dollars Percent Dollars Percent Dollars Percent Breathing Apparatus $ 74,618 23% $ 49,333 24% $ 25,285 22% Fixed Gas & Flame Detection 60,931 19% 32,526 15% 28,405 24% Firefighter Helmets & Protective Apparel 44,484 14% 34,754 17% 9,730 8% Portable Gas Detection 42,227 13% 28,762 14% 13,465 12% Industrial Head Protection 34,956 11% 27,841 13% 7,115 6% Fall Protection 25,705 8% 14,109 7% 11,596 10% Other 42,973 12% 21,804 10% 21,169 18% Total $ 325,894 100% $ 209,129 100% $ 116,765 100% |
Earnings per Share (Tables)
Earnings per Share (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share | Amounts attributable to MSA Safety Incorporated common shareholders: Three Months Ended March 31, (In thousands, except per share amounts) 2019 2018 Net income $ 23,232 $ 32,371 Preferred stock dividends (10 ) (10 ) Net income available to common equity 23,222 32,361 Dividends and undistributed earnings allocated to participating securities (22 ) (32 ) Net income available to common shareholders 23,200 32,329 Basic weighted-average shares outstanding 38,536 38,216 Stock options and other stock compensation 548 562 Diluted weighted-average shares outstanding 39,084 38,778 Antidilutive stock options — — Earnings per share: Basic $ 0.60 $ 0.85 Diluted $ 0.59 $ 0.83 |
Stock Plans (Tables)
Stock Plans (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Stock Compensation Expense | Stock compensation expense is as follows: Three Months Ended March 31, (In thousands) 2019 2018 Stock compensation expense $ 2,745 $ 5,606 Income tax benefit 670 1,362 Stock compensation expense, net of income tax benefit $ 2,075 $ 4,244 |
Summary of Stock Option Activity | A summary of stock option activity for the three months ended March 31, 2019 , follows: Shares Weighted Average Exercise Price Outstanding at January 1, 2019 735,001 $ 43.79 Exercised (44,407 ) 36.24 Outstanding at March 31, 2019 690,594 44.28 Exercisable at March 31, 2019 690,594 $ 44.28 |
Summary of Restricted Stock and Unit Activity | A summary of restricted stock and unit activity for the three months ended March 31, 2019 , follows: Shares Weighted Average Grant Date Fair Value Unvested at January 1, 2019 205,449 $ 68.97 Granted 37,320 103.59 Vested (44,421 ) 44.23 Forfeited (1,062 ) 83.33 Unvested at March 31, 2019 197,286 $ 81.38 |
Schedule of Fair Value Assumptions for Units | The following weighted average assumptions were used in the Monte Carlo model for units granted in the first quarter of 2019 with a market condition modifier. Fair value per unit $99.82 Risk-free interest rate 2.47% Expected dividend yield 1.57% Expected volatility 26.6% MSA stock beta 1.094 |
Summary of Performance Stock Unit Activity | A summary of performance stock unit activity for the three months ended March 31, 2019 , follows: Shares Weighted Average Grant Date Fair Value Unvested at January 1, 2019 218,886 $ 68.43 Granted 76,813 100.66 Performance adjustments 77,783 43.77 Vested (139,476 ) 44.75 Unvested at March 31, 2019 234,006 $ 84.93 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | (In thousands) March 31, 2019 December 31, 2018 2010 Senior Notes payable through 2021, 4.00%, net of debt issuance costs 60,000 $ 60,000 2016 Senior Notes payable through 2031, 3.40%, net of debt issuance costs 71,494 69,604 Senior revolving credit facility maturing in 2023, net of debt issuance costs 245,810 231,707 Total 377,304 361,311 Amounts due within one year, net of debt issuance costs 20,000 20,000 Long-term debt, net of debt issuance costs $ 357,304 $ 341,311 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in Goodwill | Changes in goodwill during the three months ended March 31, 2019 are as follows: (In thousands) Goodwill Balance at January 1, 2019 $ 413,640 Currency translation 1,614 Balance at March 31, 2019 $ 415,254 |
Changes in Intangible Assets, Net of Accumulated Amortization | Changes in intangible assets, net of accumulated amortization during the three months ended March 31, 2019 , are as follows: (In thousands) Intangible Assets Net balance at January 1, 2019 $ 169,515 Amortization expense (2,613 ) Currency translation 1,148 Net balance at March 31, 2019 $ 168,050 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Lessee, Operating Lease, Disclosure | Other Information Three Months Ended March 31, (In thousands, except percentage amounts) 2019 Lease cost: Operating lease cost recognized as rent expense $ 3,263 Total lease cost 3,263 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows related to operating leases $ 3,425 Non-cash other information: Right-of-use assets obtained in exchange for new operating lease liabilities $ 1,883 Weighted-average remaining lease term (in years): Operating leases 12 Weighted-average discount rate: Operating leases 4.29 % |
Schedule of Future Minimum Rental Payments for Operating Leases | At March 31, 2019 , future lease payments under operating leases were as follows: (In thousands) Operating Leases Remainder of 2019 $ 8,852 2020 8,941 2021 6,988 2022 4,294 2023 3,843 After 2023 32,744 Total lease payments $ 65,662 Less: Interest 13,870 Present value of operating lease liabilities 51,792 Less: Current operating lease liabilities (a) 9,830 Noncurrent operating lease liabilities $ 41,962 (a) Included in "Warranty reserve and other current liabilities" on the unaudited Condensed Consolidated Balance Sheet. |
Pensions and Other Post-retir_2
Pensions and Other Post-retirement Benefits (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Retirement Benefits [Abstract] | |
Components of Net Periodic Benefit Cost | Components of net periodic benefit cost consisted of the following: Pension Benefits Other Benefits (In thousands) 2019 2018 2019 2018 Three Months Ended March 31, Service cost $ 2,423 $ 2,891 $ 89 $ 101 Interest cost 4,705 4,219 249 221 Expected return on plan assets (9,653 ) (9,096 ) — — Amortization of prior service credit (4 ) (6 ) (101 ) (77 ) Recognized net actuarial losses 2,577 3,453 217 25 Settlement/curtailment loss (credit) — 27 — (141 ) Net periodic benefit cost (a) 48 1,488 454 129 (a) Components of net periodic benefit cost other than service cost are included in the line item "Other income, net" in the unaudited Condensed Consolidated Statements of Income. |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Balance Sheet Location and Fair Value of Assets Associated with Derivative Financial Instruments | The following table presents the unaudited Condensed Consolidated Balance Sheet location and fair value of assets and liabilities associated with derivative financial instruments: (In thousands) March 31, 2019 December 31, 2018 Derivatives not designated as hedging instruments: Foreign exchange contracts: other current liabilities $ 1,201 $ 12 Foreign exchange contracts: other current assets 36 488 |
Income Statement Location and Impact of Derivative Financial Instruments | The following table presents the unaudited Condensed Consolidated Statement of Income location and impact of derivative financial instruments: Loss (Gain) Recognized in Income Three Months Ended March 31, (In thousands) Statement of Income Location 2019 2018 Derivatives not designated as hedging instruments: Foreign exchange contracts Currency exchange losses, net $ 1,262 $ (2,875 ) |
Contingencies (Tables)
Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of Cumulative Trauma Product Liability Claims Activity | A summary of cumulative trauma product liability lawsuits and asserted cumulative trauma product liability claims activity is as follows: Three Months Ended March 31, 2019 Year Ended December 31, 2018 Open lawsuits, beginning of period 1,481 1,420 New lawsuits 70 369 Settled and dismissed lawsuits (70 ) (308 ) Open lawsuits, end of period 1,481 1,481 Three Months Ended March 31, 2019 Year Ended December 31, 2018 Asserted claims, beginning of period 2,355 2,242 New claims 87 479 Settled and dismissed claims (71 ) (366 ) Asserted claims, end of period 2,371 2,355 |
Summary of Insurance Receivable Balances and Activity Related to Cumulative Trauma Product Liability Losses | A summary of Insurance receivable balances and activity related to cumulative trauma product liability losses is as follows: (In millions) Three Months Ended March 31, 2019 Year Ended December 31, 2018 Balance beginning of period $ 71.7 $ 134.7 Additions 0.5 19.6 Collections, settlements converted to notes receivable and other adjustments (8.1 ) (82.6 ) Balance end of period $ 64.1 $ 71.7 |
Schedule of Notes Receivable Balances from Insurance Companies | A summary of Notes receivable, insurance companies balances is as follows: (In millions) Three Months Ended March 31, 2019 Year Ended December 31, 2018 Balance beginning of period $ 59.6 $ 76.9 Additions 0.4 1.7 Collections — (19.0 ) Balance end of period $ 60.0 $ 59.6 |
Schedule of Product Warranty Liability | The following table reconciles the changes in the Company's accrued warranty reserve: (In thousands) Three Months Ended March 31, 2019 Year Ended December 31, 2018 Beginning warranty reserve $ 14,214 $ 14,753 Warranty payments (3,198 ) (9,955 ) Warranty claims 301 10,585 Provision for product warranties and other adjustments 2,423 (1,169 ) Ending warranty reserve $ 13,740 $ 14,214 |
Recently Adopted and Recently_3
Recently Adopted and Recently Issued Accounting Standards - Additional Information (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating lease assets | $ 52,020 | $ 0 | |
Operating lease, liability | 51,792 | ||
Accounting Standards Update 2016-02 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating lease assets | $ 54,000 | ||
Operating lease, liability | $ 54,000 | ||
Retained Earnings | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Cumulative effect of the adoption of new accounting pronouncements | 3,772 | ||
Retained Earnings | Accounting Standards Update 2018-02 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Cumulative effect of the adoption of new accounting pronouncements | 3,800 | ||
Accumulated Other Comprehensive Loss | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Cumulative effect of the adoption of new accounting pronouncements | (3,772) | ||
Accumulated Other Comprehensive Loss | Accounting Standards Update 2018-02 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Cumulative effect of the adoption of new accounting pronouncements | $ (3,772) |
Inventories - Schedule of Inven
Inventories - Schedule of Inventories (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Finished products | $ 75,164 | $ 65,965 |
Work in process | 8,517 | 6,169 |
Raw materials and supplies | 129,248 | 124,554 |
Inventories at current cost | 212,929 | 196,688 |
Less: LIFO valuation | (40,266) | (40,086) |
Total inventories | $ 172,663 | $ 156,602 |
Restructuring Charges - Additio
Restructuring Charges - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | $ 5,831 | $ 5,274 |
International | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 5,700 | 3,300 |
Corporate | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | $ 100 | $ 2,000 |
Restructuring Charges - Activit
Restructuring Charges - Activity and Reserve Balance for Restructuring Charges by Segment (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Restructuring Reserve [Roll Forward] | ||
Restructuring reserve, beginning balance | $ 4.5 | $ 4.1 |
Restructuring charges | 5.8 | 13.2 |
Currency translation and other adjustments | (0.1) | (0.6) |
Cash payments / utilization | (2.1) | (12.2) |
Restructuring reserve, ending balance | 8.1 | 4.5 |
Americas | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring reserve, beginning balance | 0.5 | 0.5 |
Restructuring charges | 0 | 2.3 |
Currency translation and other adjustments | 0 | (0.3) |
Cash payments / utilization | (0.1) | (2) |
Restructuring reserve, ending balance | 0.4 | 0.5 |
International | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring reserve, beginning balance | 4 | 3.6 |
Restructuring charges | 5.7 | 5.6 |
Currency translation and other adjustments | (0.1) | (0.3) |
Cash payments / utilization | (1.9) | (4.9) |
Restructuring reserve, ending balance | 7.7 | 4 |
Corporate | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring reserve, beginning balance | 0 | 0 |
Restructuring charges | 0.1 | 5.3 |
Currency translation and other adjustments | 0 | 0 |
Cash payments / utilization | (0.1) | (5.3) |
Restructuring reserve, ending balance | $ 0 | $ 0 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 536,080 | $ 531,832 |
Less: accumulated depreciation | (379,981) | (373,892) |
Net property, plant and equipment | 156,099 | 157,940 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 3,020 | 3,188 |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 119,051 | 117,910 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 387,758 | 386,690 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 26,251 | $ 24,044 |
Reclassifications Out of Accu_3
Reclassifications Out of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Balance at beginning of period | $ 639,519 | |
Other comprehensive income (loss) | 18,279 | $ 15,729 |
Balance at end of period | 663,285 | |
Accumulated Defined Benefit Plans Adjustment Attributable to Parent | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Balance at beginning of period | (115,517) | (97,948) |
Tax benefit | (666) | (1,066) |
Total amount reclassified from Accumulated other comprehensive loss, net of tax | 2,023 | 2,329 |
Balance at end of period | (117,266) | (95,619) |
Accumulated Defined Benefit Plans Adjustment Attributable to Noncontrolling Interest | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Balance at beginning of period | 0 | 0 |
Tax benefit | 0 | 0 |
Total amount reclassified from Accumulated other comprehensive loss, net of tax | 0 | 0 |
Balance at end of period | 0 | 0 |
Accumulated Defined Benefit Plans Adjustment, Net Prior Service Attributable to Parent | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Amounts reclassified from Accumulated other comprehensive loss | (105) | (83) |
Accumulated Defined Benefit Plans Adjustment, Net Prior Service Attributable to Noncontrolling Interest | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Amounts reclassified from Accumulated other comprehensive loss | 0 | 0 |
Accumulated Defined Benefit Plans Adjustment, Net Gain (Loss) Attributable to Parent | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Amounts reclassified from Accumulated other comprehensive loss | 2,794 | 3,478 |
Accumulated Defined Benefit Plans Adjustment, Net Gain (Loss) Attributable to Noncontrolling Interest | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Amounts reclassified from Accumulated other comprehensive loss | 0 | 0 |
Accumulated Other Comprehensive (Loss) | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Cumulative effect of the adoption of new accounting pronouncements | (3,772) | |
Accumulated Net Investment Gain (Loss) Attributable to Parent | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Balance at beginning of period | (572) | 0 |
Other comprehensive income (loss) | 536 | 0 |
Balance at end of period | (36) | 0 |
Accumulated Net Investment Gain (Loss) Attributable to Noncontrolling Interest | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Balance at beginning of period | 0 | 0 |
Other comprehensive income (loss) | 0 | 0 |
Balance at end of period | 0 | 0 |
Accumulated Foreign Currency Adjustment Attributable to Parent | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Balance at beginning of period | (102,838) | (73,814) |
Reclassification from accumulated other comprehensive loss into net income | 15,359 | 0 |
Other comprehensive income (loss) | 218 | 13,230 |
Balance at end of period | (87,261) | (60,584) |
Accumulated Foreign Currency Adjustment Attributable to Noncontrolling Interest | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Balance at beginning of period | 496 | 801 |
Reclassification from accumulated other comprehensive loss into net income | 0 | 0 |
Other comprehensive income (loss) | 143 | 170 |
Balance at end of period | 639 | $ 971 |
Accounting Standards Update 2018-02 | Accumulated Other Comprehensive (Loss) | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Cumulative effect of the adoption of new accounting pronouncements | $ (3,772) |
Capital Stock - Narrative (Det
Capital Stock - Narrative (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Capital Unit [Line Items] | |||
Treasury stock, shares (shares) | 23,398,473 | 23,554,868 | |
Treasury shares, at cost | $ 302,673,000 | $ 298,143,000 | |
Common stock, shares authorized (shares) | 180,000,000 | ||
Common stock, par value (dollars per share) | $ 0 | $ 0 | |
Common stock, shares, outstanding (shares) | 38,682,918 | 38,526,523 | |
Cumulative Preferred Stock | |||
Capital Unit [Line Items] | |||
Preferred stock, shares authorized (shares) | 100,000 | ||
Preferred stock, par value (dollars per share) | $ 50 | ||
Percentage of cumulative preferred stock (percent) | 4.50% | ||
Preferred stock, callable price per share (dollars per share) | $ 52.50 | ||
Preferred stock, shares issued (shares) | 71,340 | ||
Treasury stock, shares (shares) | 52,878 | ||
Purchase of treasury shares (shares) | 0 | 0 | |
Second Cumulative Preferred Voting Stock | |||
Capital Unit [Line Items] | |||
Preferred stock, shares authorized (shares) | 1,000,000 | ||
Preferred stock, par value (dollars per share) | $ 10 | ||
Preferred stock, shares issued (shares) | 0 | ||
Common Stock | |||
Capital Unit [Line Items] | |||
Purchase of treasury shares (shares) | 0 | 0 | |
Common stock, shares issued (shares) | 62,081,391 | ||
Stock issued during period, new issues (shares) | 0 | 0 | |
Common stock, value, issued | $ 100,000,000 | ||
Treasury stock | |||
Capital Unit [Line Items] | |||
Reissued shares (shares) | 230,112 | 111,902 | |
Preferred Stock | |||
Capital Unit [Line Items] | |||
Preferred stock, par value (dollars per share) | $ 50 | $ 50 | |
Percentage of cumulative preferred stock (percent) | 4.50% | 4.50% | |
Treasury shares, at cost | $ 1,800,000 |
Capital Stock - Schedule of Com
Capital Stock - Schedule of Common Stock Activity (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Common Stock Activity [Roll Forward] | ||
Beginning balance | $ 211,806 | |
Ending balance | 213,099 | |
Common Stock | ||
Common Stock Activity [Roll Forward] | ||
Beginning balance | 211,806 | $ 194,953 |
Stock compensation expense | 2,745 | 5,606 |
Ending balance | 213,099 | 200,002 |
Treasury Cost | ||
Common Stock Activity [Roll Forward] | ||
Beginning balance | 296,390 | 296,081 |
Stock compensation expense | 0 | 0 |
Ending balance | 300,919 | 297,350 |
Restricted and performance stock awards | Common Stock | ||
Common Stock Activity [Roll Forward] | ||
Restricted and performance stock awards | 2,411 | 1,102 |
Restricted and performance stock awards | Treasury Cost | ||
Common Stock Activity [Roll Forward] | ||
Restricted and performance stock awards | 2,411 | 1,102 |
Stock options exercised | Common Stock | ||
Common Stock Activity [Roll Forward] | ||
Stock compensation expense | 959 | 545 |
Stock options exercised | Treasury Cost | ||
Common Stock Activity [Roll Forward] | ||
Stock compensation expense | 506 | 302 |
Stock Compensation Plan | Common Stock | ||
Common Stock Activity [Roll Forward] | ||
Treasury shares purchased | 0 | 0 |
Stock Compensation Plan | Treasury Cost | ||
Common Stock Activity [Roll Forward] | ||
Treasury shares purchased | $ (7,446) | $ (2,673) |
Segment Information - Additiona
Segment Information - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2019Segment | |
Segment Reporting [Abstract] | |
Number of geographic operating segments | 6 |
Number of reportable segments | 3 |
Segment Information - Schedule
Segment Information - Schedule of Reportable Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Segment Reporting Information [Line Items] | ||
Net sales | $ 326,038 | $ 325,894 |
Intercompany sales | 0 | 0 |
Operating income | 32,160 | 44,435 |
Restructuring charges | (5,831) | (5,274) |
Currency exchange losses, net | 16,961 | 2,008 |
Product liability expense | 2,896 | 2,824 |
Strategic transaction costs | 456 | 94 |
Adjusted operating income (loss) | 58,304 | 54,635 |
Depreciation and amortization | 9,326 | 9,671 |
Adjusted EBITDA | 67,630 | 64,306 |
Americas | ||
Segment Reporting Information [Line Items] | ||
Net sales | 213,687 | 209,129 |
Corporate | ||
Segment Reporting Information [Line Items] | ||
Restructuring charges | (100) | (2,000) |
Reportable Segments | Americas | ||
Segment Reporting Information [Line Items] | ||
Net sales | 213,687 | 209,129 |
Intercompany sales | 159,262 | 34,198 |
Adjusted operating income (loss) | $ 54,803 | $ 50,086 |
Adjusted operating margin, percentage | 25.60% | 23.90% |
Adjusted EBITDA | $ 60,900 | $ 56,225 |
Adjusted EBITDA, percentage | 28.50% | 26.90% |
Reportable Segments | International | ||
Segment Reporting Information [Line Items] | ||
Net sales | $ 112,351 | $ 116,765 |
Intercompany sales | 79,329 | 82,379 |
Adjusted operating income (loss) | $ 11,040 | $ 12,778 |
Adjusted operating margin, percentage | 9.80% | 10.90% |
Adjusted EBITDA | $ 14,171 | $ 16,209 |
Adjusted EBITDA, percentage | 12.60% | 13.90% |
Reportable Segments | Corporate | ||
Segment Reporting Information [Line Items] | ||
Net sales | $ 0 | $ 0 |
Intercompany sales | 0 | 0 |
Adjusted operating income (loss) | (7,539) | (8,229) |
Adjusted EBITDA | (7,441) | (8,128) |
Reconciling Items | ||
Segment Reporting Information [Line Items] | ||
Net sales | 0 | 0 |
Intercompany sales | (238,591) | (116,577) |
Adjusted operating income (loss) | 0 | $ 0 |
Adjusted EBITDA | $ 0 |
Segment Information - Percentag
Segment Information - Percentage of Total Sales by Product Group (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Revenue from External Customer [Line Items] | ||
Revenues | $ 326,038 | $ 325,894 |
Breathing Apparatus | ||
Revenue from External Customer [Line Items] | ||
Revenues | 75,446 | 74,618 |
Fixed Gas & Flame Detection | ||
Revenue from External Customer [Line Items] | ||
Revenues | $ 60,398 | 60,931 |
Concentration risk percentage | 19.00% | |
Firefighter Helmets & Protective Apparel | ||
Revenue from External Customer [Line Items] | ||
Revenues | $ 43,577 | 44,484 |
Portable Gas Detection | ||
Revenue from External Customer [Line Items] | ||
Revenues | 40,726 | 42,227 |
Industrial Head Protection | ||
Revenue from External Customer [Line Items] | ||
Revenues | 35,744 | 34,956 |
Fall Protection | ||
Revenue from External Customer [Line Items] | ||
Revenues | 30,128 | 25,705 |
Other | ||
Revenue from External Customer [Line Items] | ||
Revenues | $ 40,019 | $ 42,973 |
Sales | ||
Revenue from External Customer [Line Items] | ||
Concentration risk percentage | 100.00% | 100.00% |
Sales | Breathing Apparatus | ||
Revenue from External Customer [Line Items] | ||
Concentration risk percentage | 23.00% | 23.00% |
Sales | Fixed Gas & Flame Detection | ||
Revenue from External Customer [Line Items] | ||
Concentration risk percentage | 19.00% | |
Sales | Firefighter Helmets & Protective Apparel | ||
Revenue from External Customer [Line Items] | ||
Concentration risk percentage | 13.00% | 14.00% |
Sales | Portable Gas Detection | ||
Revenue from External Customer [Line Items] | ||
Concentration risk percentage | 13.00% | 13.00% |
Sales | Industrial Head Protection | ||
Revenue from External Customer [Line Items] | ||
Concentration risk percentage | 11.00% | 11.00% |
Sales | Fall Protection | ||
Revenue from External Customer [Line Items] | ||
Concentration risk percentage | 9.00% | 8.00% |
Sales | Other | ||
Revenue from External Customer [Line Items] | ||
Concentration risk percentage | 12.00% | 12.00% |
Americas | ||
Revenue from External Customer [Line Items] | ||
Revenues | $ 213,687 | $ 209,129 |
Americas | Breathing Apparatus | ||
Revenue from External Customer [Line Items] | ||
Revenues | 50,904 | 49,333 |
Americas | Fixed Gas & Flame Detection | ||
Revenue from External Customer [Line Items] | ||
Revenues | 32,930 | 32,526 |
Americas | Firefighter Helmets & Protective Apparel | ||
Revenue from External Customer [Line Items] | ||
Revenues | 35,064 | 34,754 |
Americas | Portable Gas Detection | ||
Revenue from External Customer [Line Items] | ||
Revenues | 26,991 | 28,762 |
Americas | Industrial Head Protection | ||
Revenue from External Customer [Line Items] | ||
Revenues | 27,836 | 27,841 |
Americas | Fall Protection | ||
Revenue from External Customer [Line Items] | ||
Revenues | 17,961 | 14,109 |
Americas | Other | ||
Revenue from External Customer [Line Items] | ||
Revenues | $ 22,001 | $ 21,804 |
Americas | Sales | ||
Revenue from External Customer [Line Items] | ||
Concentration risk percentage | 100.00% | 100.00% |
Americas | Sales | Breathing Apparatus | ||
Revenue from External Customer [Line Items] | ||
Concentration risk percentage | 24.00% | 24.00% |
Americas | Sales | Fixed Gas & Flame Detection | ||
Revenue from External Customer [Line Items] | ||
Concentration risk percentage | 15.00% | 15.00% |
Americas | Sales | Firefighter Helmets & Protective Apparel | ||
Revenue from External Customer [Line Items] | ||
Concentration risk percentage | 16.00% | 17.00% |
Americas | Sales | Portable Gas Detection | ||
Revenue from External Customer [Line Items] | ||
Concentration risk percentage | 13.00% | 14.00% |
Americas | Sales | Industrial Head Protection | ||
Revenue from External Customer [Line Items] | ||
Concentration risk percentage | 13.00% | 13.00% |
Americas | Sales | Fall Protection | ||
Revenue from External Customer [Line Items] | ||
Concentration risk percentage | 8.00% | 7.00% |
Americas | Sales | Other | ||
Revenue from External Customer [Line Items] | ||
Concentration risk percentage | 11.00% | 10.00% |
International | ||
Revenue from External Customer [Line Items] | ||
Revenues | $ 112,351 | $ 116,765 |
International | Breathing Apparatus | ||
Revenue from External Customer [Line Items] | ||
Revenues | 24,542 | 25,285 |
International | Fixed Gas & Flame Detection | ||
Revenue from External Customer [Line Items] | ||
Revenues | 27,468 | 28,405 |
International | Firefighter Helmets & Protective Apparel | ||
Revenue from External Customer [Line Items] | ||
Revenues | 8,513 | 9,730 |
International | Portable Gas Detection | ||
Revenue from External Customer [Line Items] | ||
Revenues | 13,735 | 13,465 |
International | Industrial Head Protection | ||
Revenue from External Customer [Line Items] | ||
Revenues | 7,908 | 7,115 |
International | Fall Protection | ||
Revenue from External Customer [Line Items] | ||
Revenues | 12,167 | 11,596 |
International | Other | ||
Revenue from External Customer [Line Items] | ||
Revenues | $ 18,018 | $ 21,169 |
International | Sales | ||
Revenue from External Customer [Line Items] | ||
Concentration risk percentage | 100.00% | 100.00% |
International | Sales | Breathing Apparatus | ||
Revenue from External Customer [Line Items] | ||
Concentration risk percentage | 22.00% | 22.00% |
International | Sales | Fixed Gas & Flame Detection | ||
Revenue from External Customer [Line Items] | ||
Concentration risk percentage | 24.00% | 24.00% |
International | Sales | Firefighter Helmets & Protective Apparel | ||
Revenue from External Customer [Line Items] | ||
Concentration risk percentage | 8.00% | 8.00% |
International | Sales | Portable Gas Detection | ||
Revenue from External Customer [Line Items] | ||
Concentration risk percentage | 12.00% | 12.00% |
International | Sales | Industrial Head Protection | ||
Revenue from External Customer [Line Items] | ||
Concentration risk percentage | 7.00% | 6.00% |
International | Sales | Fall Protection | ||
Revenue from External Customer [Line Items] | ||
Concentration risk percentage | 11.00% | 10.00% |
International | Sales | Other | ||
Revenue from External Customer [Line Items] | ||
Concentration risk percentage | 16.00% | 18.00% |
Earnings per Share (Details)
Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Earnings Per Share [Abstract] | ||
Net income | $ 23,232 | $ 32,371 |
Preferred stock dividends | (10) | (10) |
Net income available to common equity | 23,222 | 32,361 |
Dividends and undistributed earnings allocated to participating securities | (22) | (32) |
Net income available to common shareholders | $ 23,200 | $ 32,329 |
Basic weighted-average shares outstanding (shares) | 38,536 | 38,216 |
Stock options and other stock compensation (shares) | 548 | 562 |
Diluted weighted-average shares outstanding (shares) | 39,084 | 38,778 |
Antidilutive stock options (shares) | 0 | 0 |
Earnings per share: | ||
Basic (in dollars per share) | $ 0.60 | $ 0.85 |
Diluted (in dollars per share) | $ 0.59 | $ 0.83 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Income Tax Contingency [Line Items] | |||
Effective income tax rate | 27.80% | 22.60% | |
Insurance receivable and other noncurrent assets | $ 59,794 | $ 64,192 | |
Accrued interest and penalties related to uncertain tax positions | 1,600 | ||
Other Noncurrent Liabilities | |||
Income Tax Contingency [Line Items] | |||
Unrecognized tax benefits | 13,200 | ||
Deferred Tax Asset | |||
Income Tax Contingency [Line Items] | |||
Insurance receivable and other noncurrent assets | $ 5,200 |
Stock Plans - Additional Inform
Stock Plans - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Percentage of target award based on achieving specified performance targets | 237.60% |
Minimum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Percentage of target award based on achieving targeted performance conditions | 0.00% |
Maximum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Percentage of target award based on achieving targeted performance conditions | 200.00% |
Performance Shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Fair value assumptions, average closing price used to calculate expected dividend rate, period (years) | 1 year |
Stock beta, daily price data period (years) | 10 years |
Award vesting period (in years) | 3 years |
Stock Plans - Schedule of Stock
Stock Plans - Schedule of Stock Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Stock compensation expense | $ 2,745 | $ 5,606 |
Income tax benefit | 670 | 1,362 |
Stock compensation expense, net of income tax benefit | $ 2,075 | $ 4,244 |
Stock Plans - Summary of Stock
Stock Plans - Summary of Stock Option Activity (Details) | 3 Months Ended |
Mar. 31, 2019$ / sharesshares | |
Shares | |
Outstanding, beginning balance (in shares) | shares | 735,001 |
Exercised (in shares) | shares | (44,407) |
Outstanding, ending balance (in shares) | shares | 690,594 |
Exercisable (in shares) | shares | 690,594 |
Weighted Average Exercise Price (dollars per share) | |
Outstanding, beginning balance (dollars per share) | $ / shares | $ 43.79 |
Exercised (dollars per share) | $ / shares | 36.24 |
Outstanding, ending balance (dollars per share) | $ / shares | 44.28 |
Exercisable (dollars per share) | $ / shares | $ 44.28 |
Stock Plans - Summary of Restri
Stock Plans - Summary of Restricted Stock and Unit Activity (Details) - Restricted Stock Activity | 3 Months Ended |
Mar. 31, 2019$ / sharesshares | |
Shares | |
Unvested, beginning balance (in shares) | shares | 205,449 |
Granted (in shares) | shares | 37,320 |
Vested (in shares) | shares | (44,421) |
Forfeited (in shares) | shares | (1,062) |
Unvested, ending balance (in shares) | shares | 197,286 |
Weighted Average Exercise Price (dollars per share) | |
Unvested, beginning balance (dollars per share) | $ / shares | $ 68.97 |
Granted (dollars per share) | $ / shares | 103.59 |
Vested (dollars per share) | $ / shares | 44.23 |
Forfeited (dollars per share) | $ / shares | 83.33 |
Unvested, ending Balance (dollars per share) | $ / shares | $ 81.38 |
Stock Plans - Weighted Average
Stock Plans - Weighted Average Risk Assumptions (Details) - Performance Stock Unit | 3 Months Ended |
Mar. 31, 2019$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Fair value per unit (dollars per share) | $ 100.66 |
Monte Carlo Approach | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Fair value per unit (dollars per share) | $ 99.82 |
Risk-free interest rate | 2.47% |
Expected dividend yield | 1.57% |
Expected volatility | 26.60% |
MSA stock beta | 1.094 |
Stock Plans - Summary of Perfor
Stock Plans - Summary of Performance Stock Unit Activity (Details) - Performance Stock Unit | 3 Months Ended |
Mar. 31, 2019$ / sharesshares | |
Shares | |
Unvested, beginning balance (in shares) | shares | 218,886 |
Granted (in shares) | shares | 76,813 |
Performance adjustments (in shares) | shares | 77,783 |
Vested (in shares) | shares | (139,476) |
Unvested, ending balance (in shares) | shares | 234,006 |
Weighted Average Exercise Price (dollars per share) | |
Unvested, beginning balance (dollars per share) | $ / shares | $ 68.43 |
Granted (dollars per share) | $ / shares | 100.66 |
Performance adjustments (dollars per share) | $ / shares | 43.77 |
Vested (dollars per share) | $ / shares | 44.75 |
Unvested, ending Balance (dollars per share) | $ / shares | $ 84.93 |
Long-Term Debt - Schedule of De
Long-Term Debt - Schedule of Debt (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Senior revolving credit facility maturing in 2023, net of debt issuance costs | $ 245,810 | $ 231,707 |
Total | 377,304 | 361,311 |
Amounts due within one year, net of debt issuance costs | 20,000 | 20,000 |
Long-term debt, net of debt issuance costs | 357,304 | 341,311 |
2010 Senior Notes Payable Through 2021, 4.00% | ||
Debt Instrument [Line Items] | ||
Senior notes payable | $ 60,000 | $ 60,000 |
Debt instrument, stated interest rate percentage | 4.00% | 4.00% |
2016 Senior Notes Payable Through 2031, 3.40% | ||
Debt Instrument [Line Items] | ||
Senior notes payable | $ 71,494 | $ 69,604 |
Debt instrument, stated interest rate percentage | 3.40% | 3.40% |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Details) | Jan. 04, 2019USD ($) | Sep. 07, 2018USD ($) | Mar. 31, 2019GBP (£) | Mar. 31, 2019USD ($) | Jan. 22, 2016GBP (£) |
Debt Instrument [Line Items] | |||||
Line of credit facility, maximum borrowing capacity | $ 600,000,000 | ||||
Weighted average revolving interest rate, percentage | 3.46% | 3.46% | |||
Line of credit facility, remaining borrowing capacity | $ 349,800,000 | ||||
Debt instrument, collateral amount | 600,000 | ||||
Standby Letters of Credit | |||||
Debt Instrument [Line Items] | |||||
Proceeds from lines of credit | 10,200,000 | ||||
Senior Revolving Credit Facility Maturing in 2023 | Standby Letters of Credit | |||||
Debt Instrument [Line Items] | |||||
Proceeds from lines of credit | 2,700,000 | ||||
Multi-currency Notes Due in 2031 | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Covenant, Consolidated Leverage Ratio In Period Of Acquisition, Maximum | 4 | ||||
Notes Payable | Multi-currency Notes Due in 2031 | |||||
Debt Instrument [Line Items] | |||||
Aggregate principal amount | 71,500,000 | £ 54,900,000 | |||
Annual installment debt payments | £ 6,100,000 | 7,900,000 | |||
Debt instrument, stated interest rate percentage | 3.40% | ||||
Debt instrument, term | 3 years | ||||
Additional senior notes available for request | $ 150,000,000 | ||||
Senior notes payable | 0 | ||||
Minimum fixed charges coverage ratio (not less than) | 1.50 | ||||
Maximum consolidated leverage ratio (not to exceed) | 3.50 | ||||
Notes Payable | Master Note Facility Due in 2022 | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, term | 3 years | ||||
Additional senior notes available for request | $ 150,000,000 | ||||
Senior notes payable | $ 0 | ||||
Base Rate | Senior Revolving Credit Facility Maturing in 2023 | |||||
Debt Instrument [Line Items] | |||||
Interest rate margin, percentage | 0.00% | ||||
Federal Funds Open Rate | Senior Revolving Credit Facility Maturing in 2023 | |||||
Debt Instrument [Line Items] | |||||
Interest rate margin, percentage | 0.50% | ||||
Overnight Bank Funding Rate | Senior Revolving Credit Facility Maturing in 2023 | |||||
Debt Instrument [Line Items] | |||||
Interest rate margin, percentage | 0.50% | ||||
London Interbank Offered Rate (LIBOR) | Senior Revolving Credit Facility Maturing in 2023 | |||||
Debt Instrument [Line Items] | |||||
Interest rate margin, percentage | 1.00% | ||||
Minimum | Senior Revolving Credit Facility Maturing in 2023 | |||||
Debt Instrument [Line Items] | |||||
Interest rate margin, percentage | 0.00% | ||||
Maximum | Senior Revolving Credit Facility Maturing in 2023 | |||||
Debt Instrument [Line Items] | |||||
Interest rate margin, percentage | 175.00% |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Changes in Goodwill (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Goodwill [Roll Forward] | |
January 1, 2019 | $ 413,640 |
Currency translation | 1,614 |
March 31, 2019 | $ 415,254 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Operating Leased Assets [Line Items] | |||
Operating lease assets | $ 52,020 | $ 0 | |
Operating lease, liability | $ 51,792 | ||
Accounting Standards Update 2016-02 | |||
Operating Leased Assets [Line Items] | |||
Operating lease assets | $ 54,000 | ||
Operating lease, liability | $ 54,000 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Additional Information (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Goodwill | $ 415,254 | $ 413,640 |
Americas | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Goodwill | 273,200 | |
International | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Goodwill | 142,100 | |
Trade name | Globe Holding Company LLC | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets | $ 60,000 |
Leases - Schedule of Leased Ass
Leases - Schedule of Leased Assets (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Leases, Operating [Abstract] | |
Total lease cost | $ 3,263 |
Cash paid for amounts included in the measurement of lease liabilities: | |
Operating cash flows related to operating leases | 3,425 |
Non-cash other information: | |
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 1,883 |
Weighted-average remaining lease term (in years): | |
Operating leases | 12 months |
Weighted-average discount rate: | |
Operating leases | 4.29% |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Changes in Intangible Assets, Net of Accumulated Amortization (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Finite-lived Intangible Assets [Roll Forward] | |
January 1, 2019 | $ 169,515 |
Amortization expense | (2,613) |
Currency translation | 1,148 |
March 31, 2019 | $ 168,050 |
Leases - Schedule of Future Lea
Leases - Schedule of Future Lease Payments (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Leases [Abstract] | ||
Remainder of 2019 | $ 8,852 | |
2020 | 8,941 | |
2021 | 6,988 | |
2022 | 4,294 | |
2023 | 3,843 | |
After 2023 | 32,744 | |
Total lease payments | 65,662 | |
Less: Interest | 13,870 | |
Present value of operating lease liabilities | 51,792 | |
Less: Current operating lease liabilities | 9,830 | |
Noncurrent operating lease liabilities | $ 41,962 | $ 0 |
Pensions and Other Post-retir_3
Pensions and Other Post-retirement Benefits - Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $ 2,423 | $ 2,891 |
Interest cost | 4,705 | 4,219 |
Expected return on plan assets | (9,653) | (9,096) |
Amortization of prior service credit | (4) | (6) |
Recognized net actuarial losses | 2,577 | 3,453 |
Settlement/curtailment loss (credit) | 0 | 27 |
Net periodic benefit cost | 48 | 1,488 |
Other Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 89 | 101 |
Interest cost | 249 | 221 |
Expected return on plan assets | 0 | 0 |
Amortization of prior service credit | (101) | (77) |
Recognized net actuarial losses | 217 | 25 |
Settlement/curtailment loss (credit) | 0 | (141) |
Net periodic benefit cost | $ 454 | $ 129 |
Pensions and Other Post-retir_4
Pensions and Other Post-retirement Benefits - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Retirement Benefits [Abstract] | ||
Pension plans contributions | $ 1.8 | $ 1.2 |
Total estimated pension plans contributions for the fiscal year | $ 7.1 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Additional Information (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Foreign Exchange Forward | ||
Derivative [Line Items] | ||
Notional amount of open forward contracts | $ 76.4 | $ 72.4 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Balance Sheet Location and Fair Value of Assets Associated with Derivative Financial Instruments (Details) - Not Designated as Hedging Instrument - Foreign exchange contract - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Other Current Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Foreign exchange contracts: other current liabilities | $ 1,201 | $ 12 |
Other Current Assets | ||
Derivatives, Fair Value [Line Items] | ||
Foreign exchange contracts: other current assets | $ 36 | $ 488 |
Derivative Financial Instrume_5
Derivative Financial Instruments - Income Statement Location and Impact of Derivative Financial Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Not Designated as Hedging Instrument | Foreign exchange contract | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Currency exchange losses, net | $ 1,262 | $ (2,875) |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, amortized cost basis | $ 73.5 | $ 55.4 |
investments, fair value | 73.6 | 55.1 |
Reported Value Measurement | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt, fair value disclosure | 131.5 | 130 |
Estimate of Fair Value Measurement | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt, fair value disclosure | $ 144.7 | $ 139 |
Contingencies - Additional Info
Contingencies - Additional Information (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||
Aug. 31, 2017USD ($) | Sep. 30, 2019USD ($) | Mar. 31, 2019USD ($)LegalMatterVendor | Mar. 31, 2018USD ($) | Dec. 31, 2018USD ($)LegalMatter | Dec. 31, 2017USD ($)LegalMatter | |
Loss Contingencies [Line Items] | ||||||
Product liability expense | $ 2,896 | $ 2,824 | ||||
Loss contingency, years of activity | 5 years | |||||
Minimum number of insurance carriers | Vendor | 20 | |||||
Insurance receivables | $ 64,100 | $ 71,700 | $ 134,700 | |||
Insurance receivables, current | 11,500 | 14,800 | ||||
Insurance receivables, noncurrent | 52,600 | 56,900 | ||||
Notes receivable from insurance companies | 60,000 | 59,600 | $ 76,900 | |||
Notes receivable from insurance companies, current | 3,586 | 3,555 | ||||
Amount reported in notes receivable, insurance companies, noncurrent | 56,400 | 56,000 | ||||
Product warranty expense | 2,700 | 2,600 | ||||
Single Incident | ||||||
Loss Contingencies [Line Items] | ||||||
Product liability accrual | 3,500 | $ 3,600 | ||||
Product liability expense | $ 200 | 300 | ||||
Lawsuit | ||||||
Loss Contingencies [Line Items] | ||||||
Number of lawsuits | LegalMatter | 1,481 | 1,481 | 1,420 | |||
Damages from Product Defects | ||||||
Loss Contingencies [Line Items] | ||||||
Number of lawsuits | LegalMatter | 2,371 | 2,355 | 2,242 | |||
Cumulative Trauma | ||||||
Loss Contingencies [Line Items] | ||||||
Product liability accrual | $ 170,700 | $ 187,300 | ||||
Product liability expense | 3,300 | 3,200 | ||||
Claims Settled, But Not Yet Paid | ||||||
Loss Contingencies [Line Items] | ||||||
Product liability accrual | 16,700 | 24,500 | ||||
Uninsured Cumulative Trauma | ||||||
Loss Contingencies [Line Items] | ||||||
Product liability expense | 2,800 | $ 2,800 | ||||
Other Current Liabilities | Cumulative Trauma | ||||||
Loss Contingencies [Line Items] | ||||||
Product liability accrual | 22,400 | 38,800 | ||||
Other Noncurrent Liabilities | Cumulative Trauma | ||||||
Loss Contingencies [Line Items] | ||||||
Product liability accrual | 148,500 | |||||
Other Noncurrent Liabilities | Cumulative Trauma, Reported Claims | ||||||
Loss Contingencies [Line Items] | ||||||
Product liability, gross | 148,300 | |||||
Settled Litigation | ||||||
Loss Contingencies [Line Items] | ||||||
Damages awarded | $ 75,200 | |||||
Payments to resolve cumulative trauma claims | $ 14,300 | $ 28,600 | ||||
Subsequent Event | Settled Litigation | Scenario, Forecast | ||||||
Loss Contingencies [Line Items] | ||||||
Accrual payments | $ 7,100 |
Contingencies - Summary of Cumu
Contingencies - Summary of Cumulative Trauma Product Liability Claims Activity (Details) - LegalMatter | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Lawsuit | ||
Loss Contingency, Quantities [Roll Forward] | ||
Open lawsuits, beginning of period | 1,481 | 1,420 |
New lawsuits | 70 | 369 |
Settled and dismissed lawsuits | (70) | (308) |
Open lawsuits, end of period | 1,481 | |
Damages from Product Defects | ||
Loss Contingency, Quantities [Roll Forward] | ||
Open lawsuits, beginning of period | 2,355 | 2,242 |
New lawsuits | 87 | 479 |
Settled and dismissed lawsuits | (71) | (366) |
Open lawsuits, end of period | 2,371 |
Contingencies - Summary of Insu
Contingencies - Summary of Insurance Receivable Balances and Activity Related to Cumulative Trauma Product Liability Losses (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Movement in Loss Contingency Receivable, Increase (Decrease) [Roll Forward] | ||
Balance beginning of period | $ 71.7 | $ 134.7 |
Additions | 0.5 | 19.6 |
Collections, settlements converted to notes receivable and other adjustments | (8.1) | $ (82.6) |
Balance end of period | $ 64.1 |
Contingencies - Schedule of Not
Contingencies - Schedule of Notes Receivable Balances from Insurance Companies (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Movement in Loss Contingency Receivable, Increase (Decrease) [Roll Forward] | ||
Balance beginning of period | $ 59.6 | $ 76.9 |
Additions | 0.4 | 1.7 |
Collections | 0 | $ (19) |
Balance end of period | $ 60 |
Contingencies - Schedule of Pr
Contingencies - Schedule of Product Warranty Liability (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Movement in Standard and Extended Product Warranty Accrual, Increase (Decrease) [Roll Forward] | ||
Beginning warranty reserve | $ 14,214 | $ 14,753 |
Warranty payments | (3,198) | (9,955) |
Warranty claims | 301 | 10,585 |
Provision for product warranties and other adjustments | 2,423 | (1,169) |
Ending warranty reserve | $ 13,740 | $ 14,214 |