Document and Entitiy Informatio
Document and Entitiy Information - shares | 6 Months Ended | |
Jun. 30, 2019 | Jul. 25, 2019 | |
Document Information [Line Items] | ||
Document Transition Report | false | |
Document Type | 10-Q | |
Title of 12(b) Security | Common stock, $0.0001 par value | |
Entity Incorporation, State or Country Code | DE | |
Document Quarterly Report | true | |
Entity Registrant Name | TITAN INTERNATIONAL, INC. | |
Entity Address, Address Line One | 2701 Spruce Street | |
Entity Address, City or Town | Quincy | |
Entity Address, State or Province | IL | |
Entity Address, Postal Zip Code | 62301 | |
City Area Code | 217 | |
Local Phone Number | 228-6011 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Shell Company | true | |
Entity Central Index Key | 0000899751 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Document Period End Date | Jun. 30, 2019 | |
Entity File Number | 1-12936 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 60,166,475 | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Tax Identification Number | 36-3228472 | |
Trading Symbol | TWI | |
Security Exchange Name | NYSE |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Revenue from Contract with Customer, Excluding Assessed Tax | $ 390,597 | $ 428,904 | $ 800,971 | $ 854,286 |
Cost of sales | 352,289 | 370,592 | 717,399 | 736,413 |
Gross profit | 38,308 | 58,312 | 83,572 | 117,873 |
Selling, general and administrative expenses | 35,746 | 33,960 | 71,651 | 68,599 |
Research and development expenses | 2,544 | 2,754 | 5,161 | 5,631 |
Royalty expense | 2,448 | 2,634 | 5,054 | 5,297 |
Income (loss) from operations | (2,430) | 18,964 | 1,706 | 38,346 |
Interest expense | (8,295) | (7,672) | (16,228) | (15,190) |
Foreign exchange (loss) gain | (1,239) | (3,610) | 4,484 | (8,042) |
Other income | 2,069 | 2,477 | 3,065 | 10,227 |
(Loss) income before income taxes | (9,895) | 10,159 | (6,973) | 25,341 |
(Benefit) provision for income taxes | (3,218) | 1,683 | (1,303) | 897 |
Net (loss) income | (6,677) | 8,476 | (5,670) | 24,444 |
Net (loss) income attributable to noncontrolling interests | (253) | 40 | (1,224) | (1,639) |
Net (loss) income attributable to Titan | (6,424) | 8,436 | (4,446) | 26,083 |
Redemption value adjustment | 661 | 4,678 | 1,437 | 7,021 |
Net (loss) income applicable to common shareholders | $ (7,085) | $ 3,758 | $ (5,883) | $ 19,062 |
Earnings per common share: | ||||
Basic | $ (0.12) | $ 0.06 | $ (0.10) | $ 0.32 |
Diluted | $ (0.12) | $ 0.06 | $ (0.10) | $ 0.32 |
Average common shares and equivalents outstanding: | ||||
Basic | 60,000 | 59,750 | 59,973 | 59,731 |
Diluted | 60,000 | 59,878 | 59,973 | 59,877 |
Dividends declared per common share: | $ 0.005 | $ 0.005 | $ 0.010 | $ 0.010 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Net (loss) income | $ (6,677) | $ 8,476 | $ (5,670) | $ 24,444 | ||
Currency translation adjustment | 5,423 | (38,338) | 1,044 | (30,276) | ||
Pension liability adjustments, net of tax of $110, $10, $232, and $(44), respectively | 538 | $ 466 | 690 | $ 883 | 1,004 | 1,573 |
Comprehensive loss | (716) | (29,172) | (3,622) | (4,259) | ||
Net comprehensive income (loss) attributable to redeemable and noncontrolling interests | 385 | (2,185) | 317 | (3,225) | ||
Comprehensive loss attributable to Titan | $ (1,101) | $ (26,987) | $ (3,939) | $ (1,034) |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, Tax | $ 110 | $ 10 | $ 232 | $ (44) |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Current assets | ||
Cash and cash equivalents | $ 66,366 | $ 81,685 |
Accounts receivable, net | 272,006 | 241,832 |
Inventories | 385,368 | 395,735 |
Prepaid and other current assets | 62,473 | 60,229 |
Total current assets | 786,213 | 779,481 |
Property, plant and equipment, net | 375,997 | 384,872 |
Operating Lease, Right-of-Use Asset | 24,422 | 0 |
Deferred income taxes | 1,965 | 2,874 |
Other assets | 80,931 | 84,029 |
Total assets | 1,269,528 | 1,251,256 |
Current liabilities | ||
Short-term debt | 71,366 | 51,885 |
Accounts payable | 209,422 | 212,129 |
Other current liabilities | 111,834 | 111,054 |
Total current liabilities | 392,622 | 375,068 |
Long-term debt | 445,388 | 409,572 |
Deferred income taxes | 8,819 | 9,416 |
Other long-term liabilities | 79,091 | 67,290 |
Total liabilities | 925,920 | 861,346 |
Redeemable noncontrolling interest | 55,517 | 119,813 |
Titan stockholders' equity | ||
Common stock ($0.0001 par value, 120,000,000 shares authorized, 60,715,356 issued at June 30, 2019, and December 31, 2018) | 0 | 0 |
Additional paid-in capital | 527,763 | 519,498 |
Retained deficit | (29,751) | (29,048) |
Treasury stock (at cost, 714,986 and 798,383 shares, respectively) | (7,082) | (7,831) |
Accumulated other comprehensive loss | (207,996) | (203,571) |
Total Titan shareholders’ equity | 282,934 | 279,048 |
Noncontrolling interests | 5,157 | (8,951) |
Total equity | 288,091 | 270,097 |
Total liabilities and equity | $ 1,269,528 | $ 1,251,256 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 30, 2019 | Dec. 31, 2018 |
Liabilities and Equity [Abstract] | ||
Common Stock, par value | $ 0.0001 | $ 0 |
Common Stock, shares authorized (in shares) | 120,000,000 | 120,000,000 |
Common Stock, shares issued (in shares) | 60,715,356 | |
Treasury Stock, shares (in shares) | 714,986 | 798,383 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) | Total | Common Stock [Member] | Additional paid-in capital [Member] | Retained earnings [Member] | Treasury stock [Member] | Deferred Compensation, Share-based Payments [Member] | Accumulated other comprehensive income (loss) [Member] | Parent [Member] | Noncontrolling interest [Member] |
Balance, Beginning (in shares) at Dec. 31, 2017 | 59,800,559 | ||||||||
Balance, Beginning at Dec. 31, 2017 | $ (310,084,000) | $ (531,708,000) | $ 44,022,000 | $ 8,606,000 | $ (1,075,000) | $ 157,076,000 | $ (320,929,000) | $ 10,845,000 | |
Net (loss) income | 17,647,000 | 17,647,000 | |||||||
Currency translation adjustment, net | 7,423,000 | 7,423,000 | 291,000 | ||||||
Temporary Equity, Foreign Currency Translation Adjustments | 7,714,000 | ||||||||
Pension liability adjustments, net of tax | 883,000 | 883,000 | 883,000 | ||||||
Dividends declared | (299,000) | (299,000) | (299,000) | ||||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | 123,000 | 88,000 | 88,000 | 35,000 | |||||
Redemption value adjustment | 2,343,000 | (2,343,000) | (2,343,000) | ||||||
Stock-based compensation | 73,000 | 73,000 | 73,000 | ||||||
VIE distributions | 476,000 | 0 | 476,000 | ||||||
Issuance of treasury stock under 401(k) plan | 10,211 | ||||||||
Issuance of treasury stock under 401(k) plan | (133,000) | (42,000) | (91,000) | (133,000) | |||||
Net Income (Loss) Attributable to Nonredeemable Noncontrolling Interest | 16,483,000 | (1,164,000) | |||||||
Balance, Ending (in shares) at Mar. 31, 2018 | 59,810,770 | ||||||||
Balance, Ending at Mar. 31, 2018 | (333,327,000) | (529,480,000) | 26,586,000 | 8,515,000 | (1,075,000) | 148,770,000 | (344,534,000) | 11,207,000 | |
Net Income (Loss) Attributable to Redeemable Noncontrolling Interest | (515,000) | ||||||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, before Tax, Portion Attributable to Noncontrolling Interest | 348,000 | ||||||||
Balance, Beginning (in shares) at Dec. 31, 2017 | 59,800,559 | ||||||||
Balance, Beginning at Dec. 31, 2017 | (310,084,000) | (531,708,000) | 44,022,000 | 8,606,000 | (1,075,000) | 157,076,000 | (320,929,000) | 10,845,000 | |
Net (loss) income | 24,444,000 | ||||||||
Currency translation adjustment, net | (30,276,000) | ||||||||
Pension liability adjustments, net of tax | 1,573,000 | ||||||||
Redemption value adjustment | 7,021,000 | ||||||||
Noncontrolling Interest, Period Increase (Decrease) | 0 | ||||||||
Balance, Ending (in shares) at Jun. 30, 2018 | 59,852,781 | ||||||||
Balance, Ending at Jun. 30, 2018 | (301,979,000) | (524,466,000) | 18,450,000 | 8,407,000 | 0 | 188,518,000 | (309,091,000) | 7,112,000 | |
Net Income (Loss) Attributable to Redeemable Noncontrolling Interest | (461,000) | ||||||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, before Tax, Portion Attributable to Noncontrolling Interest | (2,207,000) | ||||||||
Balance, Beginning (in shares) at Dec. 31, 2017 | 59,800,559 | ||||||||
Balance, Beginning at Dec. 31, 2017 | (310,084,000) | (531,708,000) | 44,022,000 | 8,606,000 | (1,075,000) | 157,076,000 | (320,929,000) | 10,845,000 | |
Balance, Ending (in shares) at Dec. 31, 2018 | 59,916,973 | ||||||||
Balance, Ending at Dec. 31, 2018 | (270,097,000) | (519,498,000) | 29,048,000 | 7,831,000 | 203,571,000 | (279,048,000) | 8,951,000 | ||
Balance, Beginning (in shares) at Mar. 31, 2018 | 59,810,770 | ||||||||
Balance, Beginning at Mar. 31, 2018 | (333,327,000) | (529,480,000) | 26,586,000 | 8,515,000 | (1,075,000) | 148,770,000 | (344,534,000) | 11,207,000 | |
Net (loss) income | 8,476,000 | 8,436,000 | 8,436,000 | ||||||
Currency translation adjustment, net | (38,338,000) | (36,113,000) | (36,113,000) | 330,000 | |||||
Temporary Equity, Foreign Currency Translation Adjustments | (35,783,000) | ||||||||
Pension liability adjustments, net of tax | 690,000 | 690,000 | 690,000 | ||||||
Dividends declared | (300,000) | (300,000) | (300,000) | ||||||
Redemption value adjustment | 4,678,000 | (4,678,000) | (4,678,000) | ||||||
Stock-based compensation | 545,000 | 545,000 | 545,000 | ||||||
Stock Issued During Period, Value, Restricted Stock Award, Gross | $ 30,000 | ||||||||
Noncontrolling Interest, Period Increase (Decrease) | (1,032,000) | (4,325,000) | (5,357,000) | 5,208,000 | |||||
VIE distributions | (1,429,000) | (1,429,000) | |||||||
Change During Period Common Stock Shares Held In Employee Trust | 1,188,000 | 113,000 | 1,075,000 | 1,188,000 | |||||
Issuance of treasury stock under 401(k) plan | 12,011 | ||||||||
Issuance of treasury stock under 401(k) plan | (146,000) | (38,000) | (108,000) | (146,000) | |||||
Net Income (Loss) Attributable to Nonredeemable Noncontrolling Interest | 8,422,000 | (14,000) | |||||||
Balance, Ending (in shares) at Jun. 30, 2018 | 59,852,781 | ||||||||
Balance, Ending at Jun. 30, 2018 | (301,979,000) | (524,466,000) | 18,450,000 | 8,407,000 | $ 0 | 188,518,000 | (309,091,000) | 7,112,000 | |
Net Income (Loss) Attributable to Redeemable Noncontrolling Interest | 54,000 | ||||||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, before Tax, Portion Attributable to Noncontrolling Interest | (2,555,000) | ||||||||
Balance, Beginning (in shares) at Dec. 31, 2018 | 59,916,973 | ||||||||
Balance, Beginning at Dec. 31, 2018 | (270,097,000) | (519,498,000) | 29,048,000 | 7,831,000 | 203,571,000 | (279,048,000) | 8,951,000 | ||
Net (loss) income | 1,977,000 | 1,977,000 | |||||||
Currency translation adjustment, net | (5,281,000) | (5,281,000) | 474,000 | ||||||
Temporary Equity, Foreign Currency Translation Adjustments | (4,807,000) | ||||||||
Pension liability adjustments, net of tax | 466,000 | 466,000 | 466,000 | ||||||
Dividends declared | (301,000) | (301,000) | (301,000) | ||||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | (587,000) | 4,346,000 | (4,933,000) | (587,000) | |||||
Redemption value adjustment | 776,000 | (776,000) | (776,000) | ||||||
Stock-based compensation | 269,000 | 269,000 | 269,000 | ||||||
Noncontrolling Interest, Period Increase (Decrease) | 9,437,000 | 9,437,000 | 15,445,000 | ||||||
Stock Issued During Period, Value, Acquisitions | 24,882,000 | ||||||||
VIE distributions | (1,054,000) | 0 | (1,054,000) | ||||||
Issuance of treasury stock under 401(k) plan | 29,414 | ||||||||
Issuance of treasury stock under 401(k) plan | (141,000) | 123,000 | (264,000) | (141,000) | |||||
Net Income (Loss) Attributable to Nonredeemable Noncontrolling Interest | 1,341,000 | (636,000) | |||||||
Balance, Ending (in shares) at Mar. 31, 2019 | 59,946,387 | ||||||||
Balance, Ending at Mar. 31, 2019 | (289,671,000) | (528,305,000) | 23,026,000 | 7,567,000 | 213,319,000 | (284,393,000) | (5,278,000) | ||
Net Income (Loss) Attributable to Redeemable Noncontrolling Interest | (334,000) | ||||||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, before Tax, Portion Attributable to Noncontrolling Interest | 428,000 | ||||||||
Balance, Beginning (in shares) at Dec. 31, 2018 | 59,916,973 | ||||||||
Balance, Beginning at Dec. 31, 2018 | (270,097,000) | (519,498,000) | 29,048,000 | 7,831,000 | 203,571,000 | (279,048,000) | 8,951,000 | ||
Net (loss) income | (5,670,000) | ||||||||
Currency translation adjustment, net | 1,044,000 | ||||||||
Pension liability adjustments, net of tax | 1,004,000 | ||||||||
Redemption value adjustment | 1,437,000 | ||||||||
Noncontrolling Interest, Period Increase (Decrease) | (49,883,000) | ||||||||
Balance, Ending (in shares) at Jun. 30, 2019 | 60,000,370 | ||||||||
Balance, Ending at Jun. 30, 2019 | (288,091,000) | (527,763,000) | 29,751,000 | 7,082,000 | 207,996,000 | (282,934,000) | (5,157,000) | ||
Net Income (Loss) Attributable to Redeemable Noncontrolling Interest | (599,000) | ||||||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, before Tax, Portion Attributable to Noncontrolling Interest | 749,000 | ||||||||
Balance, Beginning (in shares) at Mar. 31, 2019 | 59,946,387 | ||||||||
Balance, Beginning at Mar. 31, 2019 | (289,671,000) | (528,305,000) | 23,026,000 | 7,567,000 | 213,319,000 | (284,393,000) | (5,278,000) | ||
Net (loss) income | (6,677,000) | (6,424,000) | (6,424,000) | ||||||
Currency translation adjustment, net | 5,423,000 | 4,785,000 | 4,785,000 | 317,000 | |||||
Temporary Equity, Foreign Currency Translation Adjustments | 5,102,000 | ||||||||
Pension liability adjustments, net of tax | 538,000 | 538,000 | 538,000 | ||||||
Dividends declared | (301,000) | (301,000) | (301,000) | ||||||
Redemption value adjustment | 661,000 | (661,000) | (661,000) | ||||||
Stock-based compensation | 286,000 | 286,000 | 286,000 | ||||||
VIE distributions | (450,000) | (450,000) | |||||||
Issuance of treasury stock under 401(k) plan | 53,983 | ||||||||
Issuance of treasury stock under 401(k) plan | (318,000) | 167,000 | (485,000) | (318,000) | |||||
Net Income (Loss) Attributable to Nonredeemable Noncontrolling Interest | (6,412,000) | 12,000 | |||||||
Balance, Ending (in shares) at Jun. 30, 2019 | 60,000,370 | ||||||||
Balance, Ending at Jun. 30, 2019 | (288,091,000) | $ (527,763,000) | $ 29,751,000 | $ 7,082,000 | $ 207,996,000 | $ (282,934,000) | $ (5,157,000) | ||
Net Income (Loss) Attributable to Redeemable Noncontrolling Interest | (265,000) | ||||||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, before Tax, Portion Attributable to Noncontrolling Interest | $ 321,000 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Cash flows from operating activities: | ||
Net (loss) income | $ (5,670) | $ 24,444 |
Adjustments to reconcile net income to net cash used for operating activities: | ||
Depreciation and amortization | 27,809 | 30,175 |
Deferred income tax provision | 156 | 287 |
Stock-based compensation | 555 | 618 |
Issuance of treasury stock under 401(k) plan | 459 | 279 |
Foreign currency translation (gain) loss | (1,789) | 8,034 |
(Increase) decrease in assets: | ||
Accounts receivable | (27,193) | (70,633) |
Inventories | 14,258 | (47,612) |
Prepaid and other current assets | (1,763) | (4,555) |
Other assets | 1,305 | (4,642) |
Increase (decrease) in liabilities: | ||
Accounts payable | (3,863) | 39,550 |
Other current liabilities | (6,949) | (660) |
Other liabilities | (7,316) | (5,212) |
Net cash used for operating activities | (10,001) | (29,927) |
Cash flows from investing activities: | ||
Capital expenditures | (16,725) | (18,416) |
Payment related to redeemable noncontrolling interest agreement | (41,000) | 0 |
Other | 1,235 | 884 |
Net cash used for investing activities | (56,490) | (17,532) |
Cash flows from financing activities: | ||
Proceeds from borrowings | 92,723 | 40,078 |
Payment on debt | (42,083) | (24,527) |
Dividends paid | (599) | (598) |
Net cash provided by financing activities | 50,041 | 14,953 |
Effect of exchange rate changes on cash | 1,131 | (4,573) |
Net decrease in cash and cash equivalents | (15,319) | (37,079) |
Cash and cash equivalents, beginning of period | 81,685 | 143,570 |
Cash and cash equivalents, end of period | 66,366 | 106,491 |
Supplemental information: | ||
Interest paid | 16,416 | 15,801 |
Income taxes paid, net of refunds received | $ 4,203 | $ 5,025 |
ACCOUNTING POLICIES
ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
ACCOUNTING POLICIES | BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES The accompanying unaudited condensed consolidated interim financial statements include the accounts of Titan International, Inc. and its subsidiaries (Titan or the Company) and have been prepared in accordance with accounting principles generally accepted in the United States of America (US GAAP) for interim financial information and in accordance with the rules and regulations of the United States Securities and Exchange Commission (the SEC). Accordingly, they do not include all of the information and footnotes required by US GAAP for complete financial statements. These unaudited condensed consolidated interim financial statements reflect all normal and recurring adjustments that are, in the opinion of management, necessary for a fair presentation of the Company's financial position as of June 30, 2019 , and the results of operations and cash flows for the three and six months ended June 30, 2019 and 2018 , and should be read in conjunction with the consolidated financial statements and the related notes thereto included in the Company’s latest Annual Report on Form 10-K for the year ended December 31, 2018, filed with the SEC on March 7, 2019 (the 2018 Form 10-K). All significant intercompany transactions have been eliminated in consolidation. These unaudited condensed consolidated interim financial statements include estimates and assumptions of management that affect the amounts reported in the condensed consolidated financial statements. Actual results could differ from these estimates. Fair value of financial instruments The Company records all financial instruments, including cash and cash equivalents, accounts receivable, notes receivable, accounts payable, other accruals, and notes payable at cost, which approximates fair value due to their short term or stated rates. Investments in marketable equity securities are recorded at fair value. The 6.50% senior secured notes due 2023 (senior secured notes) were carried at a cost of $395.5 million at June 30, 2019 . The fair value of the senior secured notes at June 30, 2019 , as obtained through an independent pricing source, was approximately $357.8 million . Cash dividends The Company declared cash dividends of $0.005 per share of common stock for each of the quarter s ended June 30, 2019 and 2018 , respectively. The second quarter 2019 cash dividend of $0.005 per share of common stock was paid on July 15, 2019, to shareholders of record on June 28, 2019. New accounting standards: Adoption of new accounting standards On January 1, 2019, the Company adopted Accounting Standards Update (ASU) No. 2016-02, "Leases (Topic 842)" (the New Lease Standard) to increase transparency and comparability among entities by recognizing lease assets and liabilities on the balance sheet and disclosing key information about lease arrangements. Titan elected the modified retrospective with cumulative effect transition approach to adopt the New Lease Standard and thus will not restate its comparative periods in the year of transition. The Company adopted the practical expedients of the New Lease Standard which include (i) not reassessing whether expired or existing contracts contain leases, (ii) not reassessing the lease classification for any expired or existing leases, and (iii) not revaluing initial direct costs for existing leases. The Company did not elect the hindsight practical expedient. The adoption of this standard resulted in the recognition of operating lease right-of-use assets and corresponding lease liabilities on the Condensed Consolidated Balance Sheet, which resulted in a net credit adjustment to retained earnings as of January 1, 2019, of $0.6 million. The New Lease Standard did not materially impact operating results or liquidity. Further disclosures related to the New Lease Standard are included in Note 10, Leases. The Company adopted ASU No. 2018-02, "Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income" effective January 1, 2019. The amendments in this update allow a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the 2017 Tax Cuts and Jobs Act (the 2017 TCJA). Consequently, the amendments eliminate the stranded tax effects resulting from the 2017 TCJA and improve the usefulness of information reported to financial statement users. As a result of adopting this standard, the Company recorded a $4.9 million reclassification to decrease accumulated other comprehensive income and increase retained earnings as of January 1, 2019. The Company adopted the Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 606, "Revenue from Contracts with Customers" (the New Revenue Standard), effective January 1, 2018, using the modified retrospective approach which requires the recognition of the cumulative effect of initially applying the standard as an adjustment to opening retained earnings for the fiscal year beginning January 1, 2018. The adoption of the New Revenue Standard resulted in the recognition of an immaterial cumulative adjustment to opening retained earnings as of January 1, 2018, and had an immaterial effect on the Company’s financial position and results of operations. Results for reporting periods beginning after January 1, 2018, are presented under the New Revenue Standard, which prescribes that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Titan recognizes revenue when the performance obligations specified in the Company's contracts have been satisfied. Titan's contracts typically contain a single performance obligation that is fulfilled on the date of delivery based on shipping terms stipulated in the contract. The impact of the Company's adoption of the New Revenue Standard on net sales was immaterial and the disaggregation of revenues, which is based on the major markets the Company serves, has not changed from how it is presented in Note 18, Segment Information in Item 1 of this Form 10-Q. The Company adopted ASU No. 2017-07, “Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost" on January 1, 2018, using the retrospective transition method. This standard changed the presentation of net periodic pension and postretirement benefit cost (net benefit cost) within the Condensed Consolidated Statement of Operations. Under the previous guidance, net benefit cost was reported as an employee cost within operating income. The amendment requires the bifurcation of net benefit cost, with the service cost component to be presented with other employee compensation costs in operating income, while the other components will be reported separately outside of income from operations. The Company early-adopted ASU No. 2018-15, "Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract," effective September 30, 2018, using the retrospective approach. ASU 2018-15 requires a customer in a hosting arrangement that is a service contract to apply the guidance on internal-use software to determine which implementation costs to recognize as an asset and which costs to expense. Costs to develop or obtain internal-use software that cannot be capitalized under Subtopic 350-40, such as training costs and certain data conversion costs, also cannot be capitalized for a hosting arrangement that is a service contract. The amendments in this update require a customer in a hosting arrangement that is a service contract to determine whether an implementation activity relates to the preliminary project stage, the application development stage, or the post-implementation stage. Costs for implementation activities in the application development stage will be capitalized depending on the nature of the costs, while costs incurred during the preliminary project and post-implementation stages will be expensed. As a result of the adoption of this accounting standard, the Company capitalized an aggregate of $7.4 million of implementation costs for the year ended December 31, 2018, from selling, general and administration in the Condensed Consolidated Statement of Operations to other assets in the Condensed Consolidated Balance Sheets. As a result of the retrospective adjustment of the change in accounting principle related to adoption of ASU No. 2018-15, certain amounts in the Company's Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2018, were adjusted as follows: Three Months Ended June 30, 2018 As Originally Reported Effect of Change As Adjusted Selling, general and administrative expenses $ 36,699 $ (2,739 ) $ 33,960 Income from operations 16,225 2,739 18,964 Net income 5,737 2,739 8,476 Basic and diluted earnings per share $ 0.02 $ 0.04 $ 0.06 Six Months Ended June 30, 2018 As Originally Reported Effect of Change As Adjusted Selling, general and administrative expenses $ 72,620 $ (4,021 ) $ 68,599 Income from operations 34,325 4,021 38,346 Net income 20,423 4,021 24,444 Basic and diluted income per share $ 0.25 $ 0.07 $ 0.32 In March 2018, the FASB issued ASU No. 2018-05, "Income Taxes (Topic 740): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118." This ASU updates the income tax accounting in US GAAP to reflect the SEC's interpretive guidance released on December 22, 2017, when the 2017 TCJA was enacted. In May 2017, the FASB issued ASU No. 2017-09, "Stock Compensation (Topic 718): Scope of Modification Accounting." This update provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting. Disclosure requirements under Topic 718 remain unchanged. The Company adopted ASU 2017-09 effective January 1, 2018. The adoption of this guidance did not have a material effect on the Company's condensed consolidated financial statements; no changes were made to the terms or conditions of share-based payments. In August 2016, the FASB issued ASU No. 2016-15, "Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments." This update addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice. The Company adopted this guidance effective January 1, 2018, with no resulting changes to the Company's condensed consolidated financial statements. Accounting standards issued but not yet adopted In August 2018, the FASB issued ASU No. 2018-13, "Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement." The amendments in this update modify the disclosure requirements on fair value measurements in Topic 820, Fair Value Measurement. The amendments in this update are effective for fiscal years beginning after December 15, 2019. The adoption of this guidance is not expected to have a material effect on the Company's condensed consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-14, "Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans." The amendments in this update modify the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. The amendments in this update are effective for fiscal years ending after December 15, 2020. The adoption of this guidance is not expected to have a material effect on the Company's condensed consolidated financial statements. |
ACCOUNTS RECEIVABLE
ACCOUNTS RECEIVABLE | 6 Months Ended |
Jun. 30, 2019 | |
Receivables [Abstract] | |
ACCOUNTS RECEIVABLE | ACCOUNTS RECEIVABLE Accounts receivable consisted of the following as of the dates set forth below (amounts in thousands): June 30, December 31, Accounts receivable $ 275,508 $ 245,236 Allowance for doubtful accounts (3,502 ) (3,404 ) Accounts receivable, net $ 272,006 $ 241,832 Accounts receivable are reduced by an estimated allowance for doubtful accounts, which is based on known risks and historical losses. |
INVENTORIES
INVENTORIES | 6 Months Ended |
Jun. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Inventory Disclosure [Text Block] | INVENTORIES Inventories consisted of the following as of the dates set forth below (amounts in thousands): June 30, December 31, Raw material $ 103,185 $ 110,806 Work-in-process 54,524 55,543 Finished goods 227,659 229,386 $ 385,368 $ 395,735 Inventories are valued at the lower of cost or net realizable value. Net realizable value is estimated based on current selling prices. Inventory costs are calculated using the first-in, first-out (FIFO) method or average cost method. Estimated provisions are established for slow-moving and obsolete inventory. |
PROPERTY, PLANT AND EQUIPMENT,
PROPERTY, PLANT AND EQUIPMENT, NET | 6 Months Ended |
Jun. 30, 2019 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT | PROPERTY, PLANT AND EQUIPMENT, NET Property, plant and equipment, net consisted of the following as of the dates set forth below (amounts in thousands): June 30, December 31, Land and improvements $ 44,198 $ 43,562 Buildings and improvements 258,703 255,451 Machinery and equipment 603,337 592,932 Tools, dies and molds 110,835 109,537 Construction-in-process 18,963 18,867 1,036,036 1,020,349 Less accumulated depreciation (660,039 ) (635,477 ) $ 375,997 $ 384,872 Depreciation on property, plant and equipment for the six months ended June 30, 2019 and 2018 , totaled $26.1 million and $28.3 million , respectively. |
INTANGIBLE ASSETS
INTANGIBLE ASSETS | 6 Months Ended |
Jun. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets Disclosure [Text Block] | INTANGIBLE ASSETS, NET The components of intangible assets consisted of the following as of the dates set forth below (amounts in thousands): Weighted Average Useful Lives (in years) June 30, 2019 June 30, December 31, Amortizable intangible assets: Customer relationships 8.2 $ 12,638 $ 12,967 Patents, trademarks and other 7.6 11,445 11,356 Total at cost 24,083 24,323 Less accumulated amortization (13,287 ) (12,676 ) $ 10,796 $ 11,647 Amortization related to intangible assets for the six months ended June 30, 2019 and 2018 , totaled $1.1 million and $1.3 million , respectively. Intangible assets are included as a component of other assets in the Condensed Consolidated Balance Sheet. The estimated aggregate amortization expense at June 30, 2019 , for each of the years (or other periods) set forth below was as follows (amounts in thousands): July 1 - December 31, 2019 $ 1,123 2020 2,090 2021 1,372 2022 988 2023 988 Thereafter 4,235 $ 10,796 |
WARRANTY
WARRANTY | 6 Months Ended |
Jun. 30, 2019 | |
Product Warranties Disclosures [Abstract] | |
WARRANTY COSTS | WARRANTY Changes in the warranty liability during the six months ended June 30, 2019 and 2018, respectively, consisted of the following (amounts in thousands): 2019 2018 Warranty liability, January 1 $ 16,327 $ 18,612 Provision for warranty liabilities 1,722 4,213 Warranty payments made (2,987 ) (3,818 ) Warranty liability, June 30 $ 15,062 $ 19,007 The Company provides limited warranties on workmanship on its products in all market segments. The majority of the Company’s products are subject to a limited warranty that ranges between less than one year and ten years, with certain product warranties being prorated after the first year. The Company calculates a provision for warranty expense based on past warranty experience. Warranty accruals are included as a component of other current liabilities on the Condensed Consolidated Balance Sheet. |
REVOLVING CREDIT FACILITY AND L
REVOLVING CREDIT FACILITY AND LONG-TERM DEBT | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
REVOLVING CREDIT FACILITY AND LONG-TERM DEBT | REVOLVING CREDIT FACILITY AND LONG-TERM DEBT Long-term debt consisted of the following as of the dates set forth below (amounts in thousands): June 30, 2019 Principal Balance Unamortized Debt Issuance Net Carrying Amount 6.50% senior secured notes due 2023 $ 400,000 $ (4,476 ) $ 395,524 Titan Europe credit facilities 44,107 — 44,107 Revolving credit facility 41,000 — 41,000 Other debt 33,366 — 33,366 Capital leases 2,757 — 2,757 Total debt 521,230 (4,476 ) 516,754 Less amounts due within one year 71,366 — 71,366 Total long-term debt $ 449,864 $ (4,476 ) $ 445,388 December 31, 2018 Principal Balance Unamortized Debt Issuance Net Carrying Amount 6.50% senior secured notes due 2023 $ 400,000 $ (4,897 ) $ 395,103 Titan Europe credit facilities 35,115 — 35,115 Other debt 28,429 — 28,429 Capital leases 2,810 — 2,810 Total debt 466,354 (4,897 ) 461,457 Less amounts due within one year 51,885 — 51,885 Total long-term debt $ 414,469 $ (4,897 ) $ 409,572 Aggregate principal maturities of long-term debt at June 30, 2019 , for each of the years (or other periods) set forth below were as follows (amounts in thousands): July 1 - December 31, 2019 $ 54,236 2020 19,031 2021 2,545 2022 43,538 2023 401,262 Thereafter 618 $ 521,230 6.50% senior secured notes due 2023 The senior secured notes are due November 2023. Including the impact of debt issuance costs, these notes had an effective yield of 6.79% at issuance. These notes are secured by the land and buildings of the following subsidiaries of the Company: Titan Tire Corporation, Titan Tire Corporation of Bryan, Titan Tire Corporation of Freeport, and Titan Wheel Corporation of Illinois. Titan Europe credit facilities The Titan Europe credit facilities include borrowings from various institutions totaling $44.1 million in aggregate principal amount at June 30, 2019 . Maturity dates on this debt range from less than one year to nine years. The Titan Europe facilities are secured by the assets of Titan's subsidiaries in Italy, Spain, Germany, and Brazil. Revolving credit facility The Company has a $125 million revolving credit facility (credit facility) with agent BMO Harris Bank N.A. and other financial institutions party thereto. The credit facility is collateralized by accounts receivable and inventory of certain of the Company’s domestic subsidiaries and is scheduled to mature in February 2022. From time to time Titan's availability under this credit facility may be less than $125 million as a result of outstanding letters of credit and eligible accounts receivable and inventory balances at certain of its domestic subsidiaries. At June 30, 2019 , under the credit facility there were $41.0 million in borrowings, a $10.3 million letter of credit, and the amount available totaled $57.3 million . Other debt The Company has working capital loans at Titan Pneus do Brasil Ltda and Voltyre-Prom at various interest rates, which totaled $8.7 million and $22.5 million at June 30, 2019 , respectively. Maturity dates on this debt range from less than one year to three years. |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS (Notes) | 6 Months Ended |
Jun. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities Disclosure [Text Block] | DERIVATIVE FINANCIAL INSTRUMENTS The Company uses financial derivatives to mitigate its exposure to volatility in foreign currency exchange rates. These derivative financial instruments are recognized at fair value. The Company has not designated these financial instruments as hedging instruments. Any gain or loss on the re-measurement of the fair value is recorded as an offset to currency exchange gain/loss. For the three and six months ended June 30, 2019 , the Company recorded currency exchange gains related to these derivatives of $0.1 million and $0.0 million , respectively; and for the three and six months ended June 30, 2018 , the Company recorded currency exchange gains related to these derivatives of $0.4 million and $0.2 million |
REDEEMABLE NONCONTROLLING INTER
REDEEMABLE NONCONTROLLING INTEREST (Notes) | 6 Months Ended |
Jun. 30, 2019 | |
Noncontrolling Interest [Abstract] | |
Noncontrolling Interest Disclosure [Text Block] | REDEEMABLE NONCONTROLLING INTEREST The Company, in partnership with One Equity Partners (OEP) and the Russian Direct Investment Fund (RDIF), owns all of the equity interests in Voltyre-Prom, a leading producer of agricultural and industrial tires in Volgograd, Russia. The Company is party to a shareholders' agreement with OEP and RDIF (Shareholders' Agreement) which was entered into in connection with the acquisition of Voltyre-Prom. The agreement contains a settlement put option which was exercisable during a six-month period beginning July 9, 2018. The settlement put option required Titan to purchase the equity interests from OEP and RDIF in Voltyre-Prom with cash or Titan common stock, at a value set by the agreement. The value set by the agreement was the greater of: the aggregate of the investment of the selling party and an amount representing an internal rate of return of 8%, or the last twelve months of EBITDA multiplied by 5.5 less net debt times the selling party's ownership percentage. On November 14, 2018, the Company received notification of exercise of the put option from RDIF. On February 11, 2019, the Company entered into a definitive agreement (the "Agreement") with an affiliate of RDIF relating to the put option that was exercised by RDIF. The transactions contemplated by the Agreement closed on February 22, 2019. Under the terms of the Agreement, in full satisfaction of the settlement put option that was exercised by RDIF, Titan paid to RDIF $25 million in cash at the closing of the transaction, and agreed, subject to the completion of regulatory approval, to issue to RDIF in a private placement 4,032,259 shares of restricted Titan common stock. Due to pending regulatory approval, the issuance of the shares of restricted Titan common stock pursuant to the Agreement was not completed as of June 30, 2019. Immediately following the closing, RDIF continued to own the same interest in Voltyre-Prom, subject to the terms of the Agreement and the Shareholders’ Agreement. Titan has retained the right to buy back the Titan shares from RDIF for $25 million during such three-year period and, if the stock buyback is consummated within one year, at the time of such buyback, RDIF would be required to convey to Titan, based on current ownership, a 10.71% interest in Voltyre-Prom, resulting in RDIF reducing its interest in Voltyre-Prom from 35.7% to 25%. On January 8, 2019, the Company received notification of exercise of the put option from OEP. During the second quarter of 2019, the Company made a payment to OEP in the amount of $16 million representing the majority of the interest on the amount due to OEP with respect to the put option. On July 30, 2019, Titan Luxembourg S.à r.l. (the “Titan Purchaser”), a subsidiary of the Company, entered into a sale purchase agreement (the “OEP Agreement”) with subsidiaries of OEP, relating to the settlement put option under the Shareholders’ Agreement that was exercised by OEP. Pursuant to the terms of the OEP Agreement, on July 31, 2019, the Titan Purchaser paid to OEP $30.7 million in cash, which, together with the Titan Purchaser’s prior payment to OEP of $16 million during the second quarter of 2019, were made in full satisfaction of the settlement put option exercised by OEP under the Shareholders’ Agreement. Immediately following the closing, OEP ceased to have any ownership interests in, and the Titan Purchaser and RDIF owned 64.3% and 35.7% , respectively, of, Voltyre-Prom. See Note 23 for additional information. As of June 30, 2019 , the value of the redeemable noncontrolling interest held by OEP was recorded at the aggregate of the investment of the selling party and an amount representing an internal rate of return of 8% less the $16 million payment. The redeemable noncontrolling interest held by RDIF was recorded at $25 million, the value of the shares of restricted stock to be issued. The noncontrolling interest is presented as a redeemable noncontrolling interest separately from total equity in the Condensed Consolidated Balance Sheet at the redemption value of the settlement put option. If the redemption value is greater than the carrying value of the noncontrolling interest, the increase in the redemption value is adjusted directly to retained earnings of the affected entity, or additional paid-in capital if there are no available retained earnings applicable to the redeemable noncontrolling interest. The following is a reconciliation of redeemable noncontrolling interest as of June 30, 2019 and 2018 (amounts in thousands): 2019 2018 Balance at January 1 $ 119,813 $ 113,193 Reclassification as a result of Agreement regarding put option (49,883 ) — Payment of interest on redeemable noncontrolling interest (16,000 ) — Loss attributable to redeemable noncontrolling interest (599 ) (461 ) Currency translation 749 (2,207 ) Redemption value adjustment 1,437 7,021 Balance at June 30 $ 55,517 $ 117,546 This obligation approximates the cost to the Company if all remaining equity interests in the consortium were purchased by the Company on June 30, 2019 , and is presented in the Condensed Consolidated Balance Sheet in redeemable noncontrolling interest, which is treated as mezzanine equity. |
LEASE COMMITMENTS (Notes)
LEASE COMMITMENTS (Notes) | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Lessee, Operating Leases [Text Block] | LEASES The Company leases certain buildings and equipment under both operating and finance leases. Certain lease agreements provide for renewal options, fair value purchase options, and payment of property taxes, maintenance, and insurance by the Company. Under ASC 842, the Company made an accounting policy election, by class of underlying asset, not to separate non-lease components such as those previously stated from lease components and instead will treat the lease agreement as a single lease component for all asset classes. Operating right-of-use (ROU) assets represent the Company's right to use an underlying asset for the lease term and lease liabilities represent Titan's obligations to make lease payments arising from the lease. The majority of Titan's leases are operating leases. Operating lease ROU assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. As most of Titan's leases do not provide an implicit interest rate, the Company used its incremental borrowing rate (6.79%), based on the information available at the lease commencement date, in determining the present value of lease payments. Operating lease expense is recognized on a straight-line basis over the lease term and is included in cost of sales and selling, general and administrative expenses on the Condensed Consolidated Statement of Operations. Amortization expense associated with finance leases is included in cost of sales and selling, general and administrative expenses, and interest expense associated with finance leases is included in interest expense in the Condensed Consolidated Statement of Operations. Short-term operating leases, which have an initial term of twelve months or less, are not recorded on the balance sheet. Supplemental balance sheet information related to leases was as follows (amounts in thousands): Balance Sheet Classification June 30, 2019 Operating lease ROU assets Operating lease assets $ 24,422 Operating lease current liabilities Other current liabilities $ 7,162 Operating lease long-term liabilities Other long-term liabilities 17,451 Total operating lease liabilities $ 24,613 Finance lease, gross Property, plant & equipment, net $ 7,839 Finance lease accumulated depreciation Property, plant & equipment, net (5,143 ) Finance lease, net $ 2,696 Finance lease current liabilities Other current liabilities $ 957 Finance lease long-term liabilities Long-term debt 1,800 Total finance lease liabilities $ 2,757 At June 30, 2019 , maturity of lease liabilities were as follows (amounts in thousands): Operating Leases Finance Leases July 1 - December 31, 2019 $ 5,678 $ 797 2020 7,329 752 2021 5,561 679 2022 3,851 581 2023 2,652 368 Thereafter 4,330 — Total lease payments $ 29,401 $ 3,177 Less imputed interest 4,788 420 $ 24,613 $ 2,757 Weighted average remaining lease term (in years) 4.9 3.6 Supplemental cash flow information related to leases for the six months ended June 30, 2019 were as follows: operating cash flows from operating leases were $5.0 million and operating cash flows from finance leases were $0.1 million . |
Lessee, Finance Leases [Text Block] | LEASES The Company leases certain buildings and equipment under both operating and finance leases. Certain lease agreements provide for renewal options, fair value purchase options, and payment of property taxes, maintenance, and insurance by the Company. Under ASC 842, the Company made an accounting policy election, by class of underlying asset, not to separate non-lease components such as those previously stated from lease components and instead will treat the lease agreement as a single lease component for all asset classes. Operating right-of-use (ROU) assets represent the Company's right to use an underlying asset for the lease term and lease liabilities represent Titan's obligations to make lease payments arising from the lease. The majority of Titan's leases are operating leases. Operating lease ROU assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. As most of Titan's leases do not provide an implicit interest rate, the Company used its incremental borrowing rate (6.79%), based on the information available at the lease commencement date, in determining the present value of lease payments. Operating lease expense is recognized on a straight-line basis over the lease term and is included in cost of sales and selling, general and administrative expenses on the Condensed Consolidated Statement of Operations. Amortization expense associated with finance leases is included in cost of sales and selling, general and administrative expenses, and interest expense associated with finance leases is included in interest expense in the Condensed Consolidated Statement of Operations. Short-term operating leases, which have an initial term of twelve months or less, are not recorded on the balance sheet. Supplemental balance sheet information related to leases was as follows (amounts in thousands): Balance Sheet Classification June 30, 2019 Operating lease ROU assets Operating lease assets $ 24,422 Operating lease current liabilities Other current liabilities $ 7,162 Operating lease long-term liabilities Other long-term liabilities 17,451 Total operating lease liabilities $ 24,613 Finance lease, gross Property, plant & equipment, net $ 7,839 Finance lease accumulated depreciation Property, plant & equipment, net (5,143 ) Finance lease, net $ 2,696 Finance lease current liabilities Other current liabilities $ 957 Finance lease long-term liabilities Long-term debt 1,800 Total finance lease liabilities $ 2,757 At June 30, 2019 , maturity of lease liabilities were as follows (amounts in thousands): Operating Leases Finance Leases July 1 - December 31, 2019 $ 5,678 $ 797 2020 7,329 752 2021 5,561 679 2022 3,851 581 2023 2,652 368 Thereafter 4,330 — Total lease payments $ 29,401 $ 3,177 Less imputed interest 4,788 420 $ 24,613 $ 2,757 Weighted average remaining lease term (in years) 4.9 3.6 Supplemental cash flow information related to leases for the six months ended June 30, 2019 were as follows: operating cash flows from operating leases were $5.0 million and operating cash flows from finance leases were $0.1 million . |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 6 Months Ended |
Jun. 30, 2019 | |
Retirement Benefits [Abstract] | |
Pension and Other Postretirement Benefits Disclosure [Text Block] | EMPLOYEE BENEFIT PLANS The Company has three frozen defined benefit pension plans covering certain employees or former employees of three U.S. subsidiaries. The Company also has pension plans covering certain employees of several foreign subsidiaries. The Company also sponsors a number of defined contribution plans in the U.S. and at foreign subsidiaries. The Company contributed approximately $1.2 million to the pension plans during the six months ended June 30, 2019 , and expects to contribute approximately $1.6 million to the pension plans during the remainder of 2019 . The components of net periodic pension cost consisted of the following for the periods set forth below (amounts in thousands): Three months ended Six months ended June 30, June 30, 2019 2018 2019 2018 Service cost $ 205 $ 141 $ 430 $ 278 Interest cost 1,106 1,098 2,229 2,181 Expected return on assets (1,188 ) (1,491 ) (2,377 ) (2,983 ) Amortization of unrecognized prior service cost 57 50 113 100 Amortization of net unrecognized loss 765 690 1,530 1,366 Net periodic pension cost $ 945 $ 488 $ 1,925 $ 942 Service cost is recorded as cost of sales in the Condensed Consolidated Statement of Operations while all other components are recorded in other income. |
VARIABLE INTEREST ENTITIES (Not
VARIABLE INTEREST ENTITIES (Notes) | 6 Months Ended |
Jun. 30, 2019 | |
Variable Interest Entity, Consolidated, Carrying Amount, Assets and Liabilities, Net [Abstract] | |
Variable Interest Entities Disclosure [Text Block] | VARIABLE INTEREST ENTITIES The Company holds a variable interest in three joint ventures for which the Company is the primary beneficiary. Two of the joint ventures operate distribution facilities that primarily distribute mining products. Titan is the 50% owner of one of these distribution facilities, which is located in Canada, and the 40% owner of the other such facility, which is located in Australia. The Company’s variable interests in these two joint ventures relate to sales of Titan product to these entities, consigned inventory, and working capital loans. The third joint venture is the consortium that owns Voltyre-Prom. Titan owns 43% of the consortium owning Voltyre-Prom, which is subject to a shareholders' agreement. See Note 9 for additional information. The Company also holds a variable interest in five other entities for which Titan is the primary beneficiary. Each of these entities provides specific manufacturing related services at the Company's Tennessee facility. Titan's variable interest in these entities relates to financial support through providing many of the assets used by these entities in their business. The Company owns no equity in these entities. As the primary beneficiary of these variable interest entities (VIEs), the VIEs’ assets, liabilities, and results of operations are included in the Company’s condensed consolidated financial statements. The other equity holders’ interests are reflected in “Net (loss) income attributable to noncontrolling interests” in the Condensed Consolidated Statements of Operations and “Noncontrolling interests” in the Condensed Consolidated Balance Sheets. The following table summarizes the carrying amount of the VIEs’ assets and liabilities included in the Company’s Condensed Consolidated Balance Sheets at June 30, 2019 , and December 31, 2018 (amounts in thousands): June 30, December 31, 2018 Cash and cash equivalents $ 11,842 $ 9,064 Inventory 20,941 12,987 Other current assets 34,048 38,533 Property, plant and equipment, net 29,032 28,057 Other long-term assets 3,795 2,971 Total assets $ 99,658 $ 91,612 Current liabilities $ 41,880 $ 36,246 Other long-term liabilities 6,061 6,353 Total liabilities $ 47,941 $ 42,599 All assets in the above table can only be used to settle obligations of the consolidated VIE to which the respective assets relate. Liabilities are nonrecourse obligations. Amounts presented in the table above are adjusted for intercompany eliminations. The Company holds variable interests in certain VIEs that are not consolidated because Titan is not the primary beneficiary. The Company's involvement with these entities is in the form of direct equity interests and prepayments related to purchases of materials. The maximum exposure to loss as reflected in the table below represents the loss of assets recognized by Titan relating to non-consolidated entities and amounts due to the non-consolidated assets. The assets and liabilities recognized in Titan's Condensed Consolidated Balance Sheets related to Titan's interest in these non-consolidated VIEs and the Company's maximum exposure to loss related to non-consolidated VIEs as of the dates set forth below were as follows (amounts in thousands): June 30, December 31, 2018 Investments $ 3,998 $ 3,985 Other current assets 1,195 1,200 Total VIE assets 5,193 5,185 Accounts payable 1,923 2,350 Maximum exposure to loss $ 7,116 $ 7,535 |
ROYALTY EXPENSE
ROYALTY EXPENSE | 6 Months Ended |
Jun. 30, 2019 | |
Other Income and Expenses [Abstract] | |
ROYALTY EXPENSE | ROYALTY EXPENSE The Company has trademark license agreements with The Goodyear Tire & Rubber Company to manufacture and sell certain farm tires under the Goodyear name. These agreements cover sales in North America, Latin America, Europe, the Middle East, Africa, Russia, and other Commonwealth of Independent States countries. Each of these agreements is scheduled to expire in 2025. Royalty expenses were $2.4 million and $2.6 million for the quarters ended June 30, 2019 and 2018 , respectively and $5.1 million and $5.3 million for the six months ended June 30, 2019 and 2018 |
OTHER INCOME
OTHER INCOME | 6 Months Ended |
Jun. 30, 2019 | |
Other Income and Expenses [Abstract] | |
OTHER INCOME, NET | OTHER INCOME Other income consisted of the following for the periods set forth below (amounts in thousands): Three months ended Six months ended June 30, June 30, 2019 2018 2019 2018 Equity investment income $ 974 $ 1,067 $ 1,849 $ 2,183 Gain (loss) on sale of assets 397 (4 ) 767 177 Building rental income 479 410 734 988 Interest income 301 532 641 1,149 Other (expense) income (82 ) 472 (926 ) 5,730 $ 2,069 $ 2,477 $ 3,065 $ 10,227 |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The Company recorded income tax benefit of $3.2 million and income tax expense of $1.7 million for the quarters ended June 30, 2019 and 2018 , respectively. For the six months ended June 30, 2019 and 2018, the Company recorded income tax benefit of $1.3 million and income tax expense of $0.9 million , respectively. The Company's effective income tax rate was 33% and 17% for the quarters ended June 30, 2019 and 2018 , and 19% and 4% for the six months ended June 30, 2019 and 2018 , respectively. The Company’s 2019 and 2018 income tax expense and rates differed from the amount of income tax determined by applying the U.S. Federal income tax rate to pre-tax income primarily as a result of U.S. and certain foreign jurisdictions that incurred a full valuation allowance on deferred tax assets created by current year projected losses and a reduction of the liability for unrecognized tax positions. In addition, there were non-deductible royalty expenses and statutorily required income adjustments made in certain foreign jurisdictions that negatively impacted the tax rate for the six months ended June 30, 2019 and 2018. The Company continues to monitor the realization of its deferred tax assets and assesses the need for a valuation allowance. The Company analyzes available positive and negative evidence to determine if a valuation allowance is needed based on the weight of the evidence. This objectively verifiable evidence primarily includes the past three years' profit and loss positions. This process requires management to make estimates, assumptions, and judgments that are uncertain in nature. The Company has established valuation allowances with respect to deferred tax assets in U.S. and certain foreign jurisdictions and continues to monitor and assess potential valuation allowances in all its jurisdictions. The 2017 TCJA was enacted on December 22, 2017, and included a number of changes in existing tax law impacting businesses, including a one-time deemed repatriation of cumulative undistributed foreign earnings and a permanent reduction in the U.S. federal statutory income tax rate from 35% to 21% effective January 1, 2018. Under US GAAP, changes in tax rates and tax law are accounted for in the period of enactment and deferred tax assets and liabilities are re-measured at the enacted tax rate. The re-measured U.S. net deferred asset was fully offset by a change in the valuation allowance in 2017. The Company’s net cumulative undistributed foreign earnings were a cumulative loss and therefore no additional income tax expense related to the one-time deemed repatriation toll charge was recorded in 2017. The 2017 TCJA also created a new requirement that certain income (i.e., global intangible low taxed income, hereinafter referred to as GILTI) earned by foreign subsidiaries must be included currently in the gross income of the U.S. shareholder. For 2018 and 2019, the Company has estimated an amount of GILTI income that is included in the calculation of 2018 and 2019 income tax expense. This GILTI income inclusion, however, is fully offset by a change in the valuation allowance. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE Earnings per share (EPS) were as follows for the periods presented below (amounts in thousands, except per share data): Three months ended Six months ended June 30, June 30, 2019 2018 2019 2018 Net (loss) income attributable to Titan $ (6,424 ) $ 8,436 $ (4,446 ) $ 26,083 Redemption value adjustment (661 ) (4,678 ) (1,437 ) (7,021 ) Net (loss) income applicable to common shareholders $ (7,085 ) $ 3,758 $ (5,883 ) $ 19,062 Determination of shares: Weighted average shares outstanding (basic) 60,000 59,750 59,973 59,731 Effect of equity awards/trusts — 128 — 146 Weighted average shares outstanding (diluted) 60,000 59,878 59,973 59,877 Earnings per share: Basic and diluted (0.12 ) 0.06 (0.10 ) 0.32 The effect of equity awards has been excluded for the three and six months ended June 30, 2019, as the effect would have been antidilutive. The weighted average share amount excluded for equity awards was 445 shares and 331 shares for the three and six months ended June 30, 2019, respectively. |
LITIGATION
LITIGATION | 6 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
LITIGATION | LITIGATION The Company is a party to routine legal proceedings arising out of the normal course of business. Due to the difficult nature of predicting unresolved and future legal claims, the Company cannot anticipate or predict the material adverse effect on its consolidated financial condition, results of operations, or cash flows as a result of efforts to comply with, or liabilities pertaining to, legal judgments. At June 30, 2019 , two of Titan’s subsidiaries were involved in litigation concerning environmental laws and regulations. In June 2015, Titan Tire Corporation (Titan Tire) and Dico, Inc. (Dico) appealed a U.S. District Court order granting the U.S. motion for summary judgment that found Dico liable for violating the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (CERCLA) and an Environmental Protection Agency (EPA) Administrative Order and awarded response costs, civil penalties, and punitive damages. In December 2015, the United States Court of Appeals for the Eighth Circuit reversed the District Court’s summary judgment order with respect to “arranger” liability for Titan Tire and Dico under CERCLA and the imposition of punitive damages against Dico for violating the EPA Administrative Order, but affirmed the summary judgment order imposing civil penalties in the amount of $1.62 million against Dico for violating the EPA Administrative Order. The case was remanded to the District Court for a new trial on the remaining issues. The trial occurred in April 2017. On September 5, 2017, the District Court issued an order: (a) concluding Titan Tire and Dico arranged for the disposal of a hazardous substance in violation of 42 U.S.C. § 9607(a); (b) holding Titan Tire and Dico jointly and severally liable for $5.45 million in response costs previously incurred and reported by the United States relating to the alleged violation, including enforcement costs and attorney’s fees; and (c) awarding a declaratory judgment holding Titan Tire and Dico jointly and severally liable for all additional response costs previously incurred but not yet reported or to be incurred in the future, including enforcement costs and attorney’s fees. The District Court also held Dico liable for $5.45 million in punitive damages under 42 U.S.C. § 9607(c)(3) for violating a unilateral administrative order. The punitive damages award does not apply to Titan Tire. The Company accrued a contingent liability of $6.5 million , representing $5.45 million in costs incurred by the United States and $1.05 million of additional response costs, for this order in the quarter ended September 30, 2017. As of June 30, 2019 , the $6.5 million contingent liability remains outstanding. Titan Tire and Dico appealed the case to the United States Court of Appeals for the Eighth Circuit. On April 11, 2019, the U.S. Court of Appeals for the Eighth Circuit affirmed the District Court’s September 5, 2017, order. Thereafter, Dico and Titan Tire filed a petition for rehearing with the U.S. Court of Appeals for the Eighth Circuit, which petition remains pending. While the Company believes it has meritorious arguments, the outcome of this petition cannot be predicted. As a result of the current judgment in favor of the United States, and pursuant to Iowa Code § 624.23, a judgment lien exists over Titan Tire’s real property in the State of Iowa. The United States has agreed, however, that it will take no steps to execute on this judgment lien. In exchange, Titan Tire has obtained a supersedeas bond in the amount of $6.0 million that stays enforcement of the judgment pending the outcome of the appeal and petition. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Segment information | SEGMENT INFORMATION The Company has aggregated its operating units into reportable segments based on its three customer markets: agricultural, earthmoving/construction, and consumer. These segments are based on the information used by the Chief Executive Officer to make certain operating decisions, allocate portions of capital expenditures, and assess segment performance. Segment external sales, expenses, and income from operations are determined based on the results of operations for the operating units of the Company's manufacturing facilities. Segment assets are generally determined on the basis of the tangible assets located at such operating units’ manufacturing facilities and the intangible assets associated with the acquisitions of such operating units. However, certain operating units’ property, plant and equipment balances are carried at the corporate level. Titan is organized primarily on the basis of products being included in three market segments, with each reportable segment including wheels, tires, wheel/tire assemblies, and undercarriage systems and components. The table below presents information about certain operating results, separated by market segments, for each of the three and six months ended June 30, 2019 and 2018 (amounts in thousands): Three months ended Six months ended June 30, June 30, 2019 2018 2019 2018 Net sales Agricultural $ 164,284 $ 186,870 $ 356,014 $ 381,037 Earthmoving/construction 184,782 198,963 361,527 387,696 Consumer 41,531 43,071 83,430 85,553 $ 390,597 $ 428,904 $ 800,971 $ 854,286 Gross profit Agricultural $ 14,247 $ 27,270 $ 36,372 $ 57,231 Earthmoving/construction 19,701 24,260 37,871 46,722 Consumer 4,360 6,782 9,329 13,920 $ 38,308 $ 58,312 $ 83,572 $ 117,873 (Loss) income from operations Agricultural $ 4,365 $ 19,002 $ 18,293 $ 40,323 Earthmoving/construction 5,697 11,575 11,225 21,528 Consumer 1,228 3,651 3,349 7,598 Corporate & Unallocated (13,720 ) (15,264 ) (31,161 ) (31,103 ) (Loss) income from operations (2,430 ) 18,964 1,706 38,346 Interest expense (8,295 ) (7,672 ) (16,228 ) (15,190 ) Foreign exchange (loss) gain (1,239 ) (3,610 ) 4,484 (8,042 ) Other income, net 2,069 2,477 3,065 10,227 (Loss) income before income taxes $ (9,895 ) $ 10,159 $ (6,973 ) $ 25,341 Assets by segment were as follows as of the dates set forth below (amounts in thousands): June 30, December 31, Total assets Agricultural $ 443,628 $ 464,828 Earthmoving/construction 605,586 543,927 Consumer 119,600 129,994 Corporate & Unallocated 100,714 112,507 $ 1,269,528 $ 1,251,256 |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS Accounting standards for fair value measurements establish a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers are defined as: Level 1 – Quoted prices in active markets for identical instruments. Level 2 – Inputs other than quoted prices in active markets that are either directly or indirectly observable. Level 3 – Unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. Assets and liabilities measured at fair value on a recurring basis consisted of the following as of the dates set forth below (amounts in thousands): June 30, 2019 December 31, 2018 Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Derivative financial instruments asset $ — $ — $ — $ — $ 902 $ — $ 902 $ — |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 6 Months Ended |
Jun. 30, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | RELATED PARTY TRANSACTIONS The Company sells products and pays commissions to companies controlled by persons related to the Chairman of the Board of Directors of the Company, Mr. Maurice Taylor. The related party is Mr. Fred Taylor, who is Mr. Maurice Taylor’s brother. The companies with which Mr. Fred Taylor is associated that do business with Titan include the following: Blacksmith OTR, LLC; F.B.T. Enterprises, Inc.; Green Carbon, Inc.; Silverstone, Inc.; and OTR Wheel Engineering, Inc. Sales of Titan products to these companies were approximately $0.2 million and $0.5 million for the three and six months ended June 30, 2019 , respectively, and approximately $0.3 million and $0.6 million for the three and six months ended June 30, 2018 , respectively. Titan had trade receivables due from these companies of approximately $0.1 million at June 30, 2019 , and approximately $0.2 million at December 31, 2018 . Sales commissions paid to the above companies were approximately $0.3 million and $0.8 million for the three and six months ended June 30, 2019 , respectively, as compared to $0.5 million and $1.0 million for the three and six months ended June 30, 2018 , respectively. In July 2013, the Company entered into a Shareholders’ Agreement with OEP and RDIF to acquire Voltyre-Prom. Mr. Richard M. Cashin Jr., a director of the Company, is the President of OEP, which owned 21.4% of the joint venture at June 30, 2019. The Shareholders’ Agreement contained a settlement put option which potentially required the Company to purchase equity interests in the joint venture from OEP and RDIF at a value set by the agreement. On January 8, 2019, the Company received notification of exercise of the put option from OEP. During the second quarter of 2019, the Company made a payment to OEP in the amount of $16 million representing the majority of the interest on the amount due to OEP. On July 30, 2019, the Titan Purchaser entered into the OEP Agreement with subsidiaries of OEP, relating to the settlement put option under the Shareholders’ Agreement that was exercised by OEP. Pursuant to the terms of the OEP Agreement, on July 31, 2019, the Titan Purchaser paid to OEP $30.7 million in cash, which, together with the Titan Purchaser’s prior payment to OEP of $16 million during the second quarter of 2019, were made in full satisfaction of the settlement put option exercised by OEP under the Shareholders’ Agreement. Immediately following the closing, OEP ceased to have any ownership interests in, and the Titan Purchaser and RDIF owned 64.3% and 35.7% , respectively, of, Voltyre-Prom. See Notes 9 and 23 for additional information. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Notes) | 6 Months Ended |
Jun. 30, 2019 | |
Stockholders' Equity Note [Abstract] | |
Comprehensive Loss Note | ACCUMULATED OTHER COMPREHENSIVE LOSS Accumulated other comprehensive loss consisted of the following for the periods presented below (amounts in thousands): Currency Translation Adjustments Unrecognized Losses and Prior Service Cost Total Balance at April 1, 2019 $ (181,075 ) $ (32,244 ) $ (213,319 ) Currency translation adjustments 4,785 — 4,785 Defined benefit pension plan entries: Amortization of unrecognized losses and prior service cost, net of tax of $110 — 538 538 Balance at June 30, 2019 $ (176,290 ) $ (31,706 ) $ (207,996 ) Currency Translation Adjustments Unrecognized Losses and Prior Service Cost Total Balance at January 1, 2019 $ (175,794 ) $ (27,777 ) $ (203,571 ) Currency translation adjustments (496 ) — (496 ) Defined benefit pension plan entries: Amortization of unrecognized losses and prior service cost, net of tax of $232 — 1,004 1,004 Reclassification from AOCI to retained earnings - adoption of ASU 2018-02 — (4,933 ) (4,933 ) Balance at June 30, 2019 $ (176,290 ) $ (31,706 ) $ (207,996 ) |
SUBSIDIARY GUARANTOR FINANCIAL
SUBSIDIARY GUARANTOR FINANCIAL INFORMATION | 6 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Condensed Financial Information of Parent Company Only Disclosure [Text Block] | SUBSIDIARY GUARANTOR FINANCIAL INFORMATION The senior secured notes are guaranteed by the following wholly-owned subsidiaries of the Company: Titan Tire Corporation, Titan Tire Corporation of Bryan, Titan Tire Corporation of Freeport, and Titan Wheel Corporation of Illinois. The note guarantees are full and unconditional, joint and several obligations of the guarantors. The guarantees of the guarantor subsidiaries are subject to release in limited circumstances only upon the occurrence of certain customary conditions. See the indenture governing the senior secured notes incorporated by reference to the 2018 Form 10-K for additional information. The following condensed consolidating financial statements are presented using the equity method of accounting. Certain sales and marketing expenses recorded by non-guarantor subsidiaries have not been allocated to the guarantor subsidiaries. (Amounts in thousands) Condensed Consolidating Statements of Operations For the Three Months Ended June 30, 2019 Titan Intl., Inc. (Parent) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net sales $ — $ 111,162 $ 391,301 $ (111,866 ) $ 390,597 Cost of sales (11 ) 99,275 364,891 (111,866 ) 352,289 Gross profit 11 11,887 26,410 — 38,308 Selling, general and administrative expenses 2,030 11,596 22,120 — 35,746 Research and development expenses 228 756 1,560 — 2,544 Royalty expense 401 1,073 974 — 2,448 (Loss) income from operations (2,648 ) (1,538 ) 1,756 — (2,430 ) Interest expense (7,243 ) — (1,052 ) — (8,295 ) Intercompany interest income (expense) 644 880 (1,524 ) — — Foreign exchange gain (loss) 16 55 (1,310 ) — (1,239 ) Other income (expense) 612 (798 ) 2,255 — 2,069 (Loss) income before income taxes (8,619 ) (1,401 ) 125 — (9,895 ) (Benefit) provision for income taxes (7,676 ) 132 4,326 — (3,218 ) Equity in earnings of subsidiaries (5,734 ) — (205 ) 5,939 — Net (loss) income (6,677 ) (1,533 ) (4,406 ) 5,939 (6,677 ) Net loss attributable to noncontrolling interests — — (253 ) — (253 ) Net (loss) income attributable to Titan $ (6,677 ) $ (1,533 ) $ (4,153 ) $ 5,939 $ (6,424 ) (Amounts in thousands) Condensed Consolidating Statements of Operations For the Three Months Ended June 30, 2018 Titan Intl., Inc. (Parent) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net sales $ — $ 166,757 $ 262,147 $ — $ 428,904 Cost of sales 138 140,208 230,246 — 370,592 Gross (loss) profit (138 ) 26,549 31,901 — 58,312 Selling, general and administrative expenses 1,678 16,985 15,297 — 33,960 Research and development expenses 253 983 1,518 — 2,754 Royalty expense 628 940 1,066 — 2,634 (Loss) income from operations (2,697 ) 7,641 14,020 — 18,964 Interest expense (6,826 ) — (846 ) — (7,672 ) Intercompany interest income (expense) 628 909 (1,537 ) — — Foreign exchange loss — (662 ) (2,948 ) — (3,610 ) Other income (loss) 959 (147 ) 1,665 — 2,477 (Loss) income before income taxes (7,936 ) 7,741 10,354 — 10,159 (Benefit) provision for income taxes (2,390 ) 3,044 1,029 — 1,683 Equity in earnings of subsidiaries 14,022 — 209 (14,231 ) — Net income (loss) 8,476 4,697 9,534 (14,231 ) 8,476 Net income attributable to noncontrolling interests — — 40 — 40 Net income (loss) attributable to Titan $ 8,476 $ 4,697 $ 9,494 $ (14,231 ) $ 8,436 (Amounts in thousands) Condensed Consolidating Statements of Operations For the Six Months Ended June 30, 2019 Titan Intl., Inc. (Parent) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net sales $ — $ 235,943 $ 801,576 $ (236,548 ) $ 800,971 Cost of sales 141 205,791 748,015 (236,548 ) 717,399 Gross (loss) profit (141 ) 30,152 53,561 — 83,572 Selling, general and administrative expenses 3,181 23,204 45,266 — 71,651 Research and development expenses 492 1,585 3,084 — 5,161 Royalty expense 1,064 2,145 1,845 — 5,054 (Loss) income from operations (4,878 ) 3,218 3,366 — 1,706 Interest expense (14,170 ) — (2,058 ) — (16,228 ) Intercompany interest income (expense) 1,274 1,890 (3,164 ) — — Foreign exchange (loss) gain (22 ) (4 ) 4,510 — 4,484 Other income (expense) 943 (1,077 ) 3,199 — 3,065 (Loss) income before income taxes (16,853 ) 4,027 5,853 — (6,973 ) (Benefit) provision for income taxes (7,026 ) 283 5,440 — (1,303 ) Equity in earnings of subsidiaries 4,157 — 531 (4,688 ) — Net (loss) income (5,670 ) 3,744 944 (4,688 ) (5,670 ) Net loss attributable to noncontrolling interests — — (1,224 ) — (1,224 ) Net (loss) income attributable to Titan $ (5,670 ) $ 3,744 $ 2,168 $ (4,688 ) $ (4,446 ) (Amounts in thousands) Condensed Consolidating Statements of Operations For the Six Months Ended June 30, 2018 Titan Intl., Inc. (Parent) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net sales $ — $ 337,517 $ 516,769 $ — $ 854,286 Cost of sales 246 281,738 454,429 — 736,413 Gross (loss) profit (246 ) 55,779 62,340 — 117,873 Selling, general and administrative expenses 2,873 32,260 33,466 — 68,599 Research and development expenses 493 1,969 3,169 — 5,631 Royalty expense 881 2,453 1,963 — 5,297 (Loss) income from operations (4,493 ) 19,097 23,742 — 38,346 Interest expense (13,639 ) — (1,551 ) — (15,190 ) Intercompany interest income (expense) 1,251 1,922 (3,173 ) — — Foreign exchange loss — (670 ) (7,372 ) — (8,042 ) Other income (expense) 6,628 (313 ) 3,912 — 10,227 (Loss) income before income taxes (10,253 ) 20,036 15,558 — 25,341 (Benefit) provision for income taxes (12,456 ) 7,304 6,049 — 897 Equity in earnings of subsidiaries 22,241 — 4,546 (26,787 ) — Net income (loss) 24,444 12,732 14,055 (26,787 ) 24,444 Net loss attributable to noncontrolling interests — — (1,639 ) — (1,639 ) Net income (loss) attributable to Titan $ 24,444 $ 12,732 $ 15,694 $ (26,787 ) $ 26,083 (Amounts in thousands) Condensed Consolidating Statements of Comprehensive Income (Loss) For the Three Months Ended June 30, 2019 Titan Intl., Inc. (Parent) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net (loss) income $ (6,677 ) $ (1,533 ) $ (4,406 ) $ 5,939 $ (6,677 ) Currency translation adjustment 5,423 — 5,423 (5,423 ) 5,423 Pension liability adjustments, net of tax 538 753 (215 ) (538 ) 538 Comprehensive (loss) income (716 ) (780 ) 802 (22 ) (716 ) Net comprehensive income attributable to redeemable and noncontrolling interests — — 385 — 385 Comprehensive (loss) income attributable to Titan $ (716 ) $ (780 ) $ 417 $ (22 ) $ (1,101 ) (Amounts in thousands) Condensed Consolidating Statements of Comprehensive Income (Loss) For the Three Months Ended June 30, 2018 Titan Intl., Inc. (Parent) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net income (loss) $ 8,476 $ 4,697 $ 9,534 $ (14,231 ) $ 8,476 Currency translation adjustment (38,338 ) — (38,338 ) 38,338 (38,338 ) Pension liability adjustments, net of tax 690 646 44 (690 ) 690 Comprehensive (loss) income (29,172 ) 5,343 (28,760 ) 23,417 (29,172 ) Net comprehensive loss attributable to redeemable and noncontrolling interests — — (2,185 ) — (2,185 ) Comprehensive (loss) income attributable to Titan $ (29,172 ) $ 5,343 $ (26,575 ) $ 23,417 $ (26,987 ) (Amounts in thousands) Condensed Consolidating Statements of Comprehensive Income (Loss) For the Six Months Ended June 30, 2019 Titan Intl., Inc. (Parent) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net (loss) income $ (5,670 ) $ 3,744 $ 944 $ (4,688 ) $ (5,670 ) Currency translation adjustment 1,044 — 1,044 (1,044 ) 1,044 Pension liability adjustments, net of tax 1,004 1,506 (502 ) (1,004 ) 1,004 Comprehensive (loss) income (3,622 ) 5,250 1,486 (6,736 ) (3,622 ) Net comprehensive income attributable to redeemable and noncontrolling interests — — 317 — 317 Comprehensive (loss) income attributable to Titan $ (3,622 ) $ 5,250 $ 1,169 $ (6,736 ) $ (3,939 ) (Amounts in thousands) Condensed Consolidating Statements of Comprehensive Income (Loss) For the Six Months Ended June 30, 2018 Titan Intl., Inc. (Parent) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net income (loss) $ 24,444 $ 12,732 $ 14,055 $ (26,787 ) $ 24,444 Currency translation adjustment (30,276 ) — (30,276 ) 30,276 (30,276 ) Pension liability adjustments, net of tax 1,573 1,292 281 (1,573 ) 1,573 Comprehensive (loss) income (4,259 ) 14,024 (15,940 ) 1,916 (4,259 ) Net comprehensive loss attributable to redeemable and noncontrolling interests — — (3,225 ) — (3,225 ) Comprehensive (loss) income attributable to Titan $ (4,259 ) $ 14,024 $ (12,715 ) $ 1,916 $ (1,034 ) (Amounts in thousands) Condensed Consolidating Balance Sheets June 30, 2019 Titan Intl., Inc. (Parent) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Assets Cash and cash equivalents $ 6,352 $ 3 $ 60,011 $ — $ 66,366 Accounts receivable, net — 73 271,933 — 272,006 Inventories — 55,796 329,572 — 385,368 Prepaid and other current assets 2,996 17,740 41,737 — 62,473 Total current assets 9,348 73,612 703,253 — 786,213 Property, plant and equipment, net 11,311 94,374 270,312 — 375,997 Investment in subsidiaries 750,874 — 65,574 (816,448 ) — Other assets 2,721 4,970 99,627 — 107,318 Total assets $ 774,254 $ 172,956 $ 1,138,766 $ (816,448 ) $ 1,269,528 Liabilities and Equity Short-term debt $ 456 $ — $ 70,910 $ — $ 71,366 Accounts payable 4,532 27,947 176,943 — 209,422 Other current liabilities 16,345 21,026 74,463 — 111,834 Total current liabilities 21,333 48,973 322,316 — 392,622 Long-term debt 437,903 — 7,485 — 445,388 Other long-term liabilities 5,123 19,597 63,190 — 87,910 Intercompany accounts 17,379 (407,724 ) 390,345 — — Redeemable noncontrolling interest — — 55,517 — 55,517 Titan shareholders' equity 292,516 512,110 294,756 (816,448 ) 282,934 Noncontrolling interests — — 5,157 — 5,157 Total liabilities and equity $ 774,254 $ 172,956 $ 1,138,766 $ (816,448 ) $ 1,269,528 (Amounts in thousands) Condensed Consolidating Balance Sheets December 31, 2018 Titan Intl., Inc. (Parent) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Assets Cash and cash equivalents $ 23,630 $ 4 $ 58,051 $ — $ 81,685 Accounts receivable, net — — 241,832 — 241,832 Inventories — 68,858 326,877 — 395,735 Prepaid and other current assets 3,853 18,845 37,531 — 60,229 Total current assets 27,483 87,707 664,291 — 779,481 Property, plant and equipment, net 12,493 98,856 273,523 — 384,872 Investment in subsidiaries 749,645 — 66,308 (815,953 ) — Other assets 6,268 944 79,691 — 86,903 Total assets $ 795,889 $ 187,507 $ 1,083,813 $ (815,953 ) $ 1,251,256 Liabilities and Equity Short-term debt $ 419 $ — $ 51,466 $ — $ 51,885 Accounts payable 1,447 29,922 180,760 — 212,129 Other current liabilities 22,065 20,051 68,938 — 111,054 Total current liabilities 23,931 49,973 301,164 — 375,068 Long-term debt 396,700 — 12,872 — 409,572 Other long-term liabilities 9,268 17,521 49,917 — 76,706 Intercompany accounts 77,363 (390,382 ) 313,019 — — Redeemable noncontrolling interest — — 119,813 — 119,813 Titan shareholders' equity 288,627 510,395 295,979 (815,953 ) 279,048 Noncontrolling interests — — (8,951 ) — (8,951 ) Total liabilities and equity $ 795,889 $ 187,507 $ 1,083,813 $ (815,953 ) $ 1,251,256 (Amounts in thousands) Condensed Consolidating Statements of Cash Flows For the Six Months Ended June 30, 2019 Titan Intl., Inc. (Parent) Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidated Net cash (used for) provided by operating activities $ (16,658 ) $ 4,213 $ 2,444 $ (10,001 ) Cash flows from investing activities: Capital expenditures (21 ) (4,396 ) (12,308 ) (16,725 ) Payment related to redeemable noncontrolling interest (41,000 ) — — (41,000 ) Other, net — 182 1,053 1,235 Net cash used for investing activities (41,021 ) (4,214 ) (11,255 ) (56,490 ) Cash flows from financing activities: Proceeds from borrowings 50,000 — 42,723 92,723 Payment on debt (9,000 ) — (33,083 ) (42,083 ) Dividends paid (599 ) — — (599 ) Net cash provided by financing activities 40,401 — 9,640 50,041 Effect of exchange rate change on cash — — 1,131 1,131 Net (decrease) increase in cash and cash equivalents (17,278 ) (1 ) 1,960 (15,319 ) Cash and cash equivalents, beginning of period 23,630 4 58,051 81,685 Cash and cash equivalents, end of period $ 6,352 $ 3 $ 60,011 $ 66,366 (Amounts in thousands) Condensed Consolidating Statements of Cash Flows For the Six Months Ended June 30, 2018 Titan Intl., Inc. (Parent) Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidated Net cash (used for) provided by operating activities $ (24,585 ) $ 3,265 $ (8,607 ) $ (29,927 ) Cash flows from investing activities: Capital expenditures (83 ) (3,274 ) (15,059 ) (18,416 ) Other, net 220 1 663 884 Net cash provided by (used for) investing activities 137 (3,273 ) (14,396 ) (17,532 ) Cash flows from financing activities: Proceeds from borrowings — — 40,078 40,078 Payment on debt — — (24,527 ) (24,527 ) Dividends paid (598 ) — — (598 ) Net cash (used for) provided by financing activities (598 ) — 15,551 14,953 Effect of exchange rate change on cash — — (4,573 ) (4,573 ) Net decrease in cash and cash equivalents (25,046 ) (8 ) (12,025 ) (37,079 ) Cash and cash equivalents, beginning of period 59,740 13 83,817 143,570 Cash and cash equivalents, end of period $ 34,694 $ 5 $ 71,792 $ 106,491 |
SUBSEQUENT EVENTS (Notes)
SUBSEQUENT EVENTS (Notes) | 6 Months Ended |
Jun. 30, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | SUBSEQUENT EVENTS The Company, in partnership with OEP and RDIF, previously acquired all of the equity interests in Voltyre-Prom, a leading producer of agricultural and industrial tires in Volgograd, Russia. The Company is party to the Shareholders' Agreement which was entered into in connection with the acquisition of Voltyre-Prom. The agreement contains a settlement put option which was exercisable during a six-month period beginning July 9, 2018. The settlement put option required Titan to purchase the equity interests from OEP and RDIF in Voltyre-Prom with cash or Titan common stock, at a value set by the agreement. On January 8, 2019, the Company received notification of exercise of the put option from OEP. During the second quarter of 2019, the Company made a payment to OEP in the amount of $16 million representing the majority of the interest on the amount due to OEP. On July 30, 2019, the Titan Purchaser, a subsidiary of the Company, entered into the OEP Agreement with subsidiaries of OEP, relating to the settlement put option under the Shareholders' Agreement that was exercised by OEP. Pursuant to the terms of the OEP Agreement, on July 31, 2019, the Titan Purchaser paid OEP $30.7 million in cash, which together with the $16 million paid to OEP during the second quarter of 2019, fully satisfies the settlement put option exercised by OEP under the Shareholders' Agreement. Immediately following the closing, OEP ceased to have any ownership interest in, and the Titan Purchaser and RDIF owned 64.3% and 35.7% , respectively, of Voltyre-Prom. |
ACCOUNTING POLICIES (Policies)
ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Fair value of financial instruments | Fair value of financial instruments The Company records all financial instruments, including cash and cash equivalents, accounts receivable, notes receivable, accounts payable, other accruals, and notes payable at cost, which approximates fair value due to their short term or stated rates. Investments in marketable equity securities are recorded at fair value. The 6.50% senior secured notes due 2023 (senior secured notes) were carried at a cost of $395.5 million at June 30, 2019 . The fair value of the senior secured notes at June 30, 2019 , as obtained through an independent pricing source, was approximately $357.8 million . |
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | Adoption of new accounting standards On January 1, 2019, the Company adopted Accounting Standards Update (ASU) No. 2016-02, "Leases (Topic 842)" (the New Lease Standard) to increase transparency and comparability among entities by recognizing lease assets and liabilities on the balance sheet and disclosing key information about lease arrangements. Titan elected the modified retrospective with cumulative effect transition approach to adopt the New Lease Standard and thus will not restate its comparative periods in the year of transition. The Company adopted the practical expedients of the New Lease Standard which include (i) not reassessing whether expired or existing contracts contain leases, (ii) not reassessing the lease classification for any expired or existing leases, and (iii) not revaluing initial direct costs for existing leases. The Company did not elect the hindsight practical expedient. The adoption of this standard resulted in the recognition of operating lease right-of-use assets and corresponding lease liabilities on the Condensed Consolidated Balance Sheet, which resulted in a net credit adjustment to retained earnings as of January 1, 2019, of $0.6 million. The New Lease Standard did not materially impact operating results or liquidity. Further disclosures related to the New Lease Standard are included in Note 10, Leases. The Company adopted ASU No. 2018-02, "Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income" effective January 1, 2019. The amendments in this update allow a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the 2017 Tax Cuts and Jobs Act (the 2017 TCJA). Consequently, the amendments eliminate the stranded tax effects resulting from the 2017 TCJA and improve the usefulness of information reported to financial statement users. As a result of adopting this standard, the Company recorded a $4.9 million reclassification to decrease accumulated other comprehensive income and increase retained earnings as of January 1, 2019. The Company adopted the Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 606, "Revenue from Contracts with Customers" (the New Revenue Standard), effective January 1, 2018, using the modified retrospective approach which requires the recognition of the cumulative effect of initially applying the standard as an adjustment to opening retained earnings for the fiscal year beginning January 1, 2018. The adoption of the New Revenue Standard resulted in the recognition of an immaterial cumulative adjustment to opening retained earnings as of January 1, 2018, and had an immaterial effect on the Company’s financial position and results of operations. Results for reporting periods beginning after January 1, 2018, are presented under the New Revenue Standard, which prescribes that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Titan recognizes revenue when the performance obligations specified in the Company's contracts have been satisfied. Titan's contracts typically contain a single performance obligation that is fulfilled on the date of delivery based on shipping terms stipulated in the contract. The impact of the Company's adoption of the New Revenue Standard on net sales was immaterial and the disaggregation of revenues, which is based on the major markets the Company serves, has not changed from how it is presented in Note 18, Segment Information in Item 1 of this Form 10-Q. The Company adopted ASU No. 2017-07, “Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost" on January 1, 2018, using the retrospective transition method. This standard changed the presentation of net periodic pension and postretirement benefit cost (net benefit cost) within the Condensed Consolidated Statement of Operations. Under the previous guidance, net benefit cost was reported as an employee cost within operating income. The amendment requires the bifurcation of net benefit cost, with the service cost component to be presented with other employee compensation costs in operating income, while the other components will be reported separately outside of income from operations. The Company early-adopted ASU No. 2018-15, "Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract," effective September 30, 2018, using the retrospective approach. ASU 2018-15 requires a customer in a hosting arrangement that is a service contract to apply the guidance on internal-use software to determine which implementation costs to recognize as an asset and which costs to expense. Costs to develop or obtain internal-use software that cannot be capitalized under Subtopic 350-40, such as training costs and certain data conversion costs, also cannot be capitalized for a hosting arrangement that is a service contract. The amendments in this update require a customer in a hosting arrangement that is a service contract to determine whether an implementation activity relates to the preliminary project stage, the application development stage, or the post-implementation stage. Costs for implementation activities in the application development stage will be capitalized depending on the nature of the costs, while costs incurred during the preliminary project and post-implementation stages will be expensed. As a result of the adoption of this accounting standard, the Company capitalized an aggregate of $7.4 million of implementation costs for the year ended December 31, 2018, from selling, general and administration in the Condensed Consolidated Statement of Operations to other assets in the Condensed Consolidated Balance Sheets. As a result of the retrospective adjustment of the change in accounting principle related to adoption of ASU No. 2018-15, certain amounts in the Company's Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2018, were adjusted as follows: Three Months Ended June 30, 2018 As Originally Reported Effect of Change As Adjusted Selling, general and administrative expenses $ 36,699 $ (2,739 ) $ 33,960 Income from operations 16,225 2,739 18,964 Net income 5,737 2,739 8,476 Basic and diluted earnings per share $ 0.02 $ 0.04 $ 0.06 Six Months Ended June 30, 2018 As Originally Reported Effect of Change As Adjusted Selling, general and administrative expenses $ 72,620 $ (4,021 ) $ 68,599 Income from operations 34,325 4,021 38,346 Net income 20,423 4,021 24,444 Basic and diluted income per share $ 0.25 $ 0.07 $ 0.32 In March 2018, the FASB issued ASU No. 2018-05, "Income Taxes (Topic 740): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118." This ASU updates the income tax accounting in US GAAP to reflect the SEC's interpretive guidance released on December 22, 2017, when the 2017 TCJA was enacted. In May 2017, the FASB issued ASU No. 2017-09, "Stock Compensation (Topic 718): Scope of Modification Accounting." This update provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting. Disclosure requirements under Topic 718 remain unchanged. The Company adopted ASU 2017-09 effective January 1, 2018. The adoption of this guidance did not have a material effect on the Company's condensed consolidated financial statements; no changes were made to the terms or conditions of share-based payments. In August 2016, the FASB issued ASU No. 2016-15, "Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments." This update addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice. The Company adopted this guidance effective January 1, 2018, with no resulting changes to the Company's condensed consolidated financial statements. |
New Accounting Pronouncements, Policy [Policy Text Block] | Accounting standards issued but not yet adopted In August 2018, the FASB issued ASU No. 2018-13, "Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement." The amendments in this update modify the disclosure requirements on fair value measurements in Topic 820, Fair Value Measurement. The amendments in this update are effective for fiscal years beginning after December 15, 2019. The adoption of this guidance is not expected to have a material effect on the Company's condensed consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-14, "Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans." The amendments in this update modify the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. The amendments in this update are effective for fiscal years ending after December 15, 2020. The adoption of this guidance is not expected to have a material effect on the Company's condensed consolidated financial statements. |
ACCOUNTING POLICIES (Tables)
ACCOUNTING POLICIES (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block] | The Company adopted the Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 606, "Revenue from Contracts with Customers" (the New Revenue Standard), effective January 1, 2018, using the modified retrospective approach which requires the recognition of the cumulative effect of initially applying the standard as an adjustment to opening retained earnings for the fiscal year beginning January 1, 2018. The adoption of the New Revenue Standard resulted in the recognition of an immaterial cumulative adjustment to opening retained earnings as of January 1, 2018, and had an immaterial effect on the Company’s financial position and results of operations. Results for reporting periods beginning after January 1, 2018, are presented under the New Revenue Standard, which prescribes that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Titan recognizes revenue when the performance obligations specified in the Company's contracts have been satisfied. Titan's contracts typically contain a single performance obligation that is fulfilled on the date of delivery based on shipping terms stipulated in the contract. The impact of the Company's adoption of the New Revenue Standard on net sales was immaterial and the disaggregation of revenues, which is based on the major markets the Company serves, has not changed from how it is presented in Note 18, Segment Information in Item 1 of this Form 10-Q. |
ACCOUNTS RECEIVABLE (Tables)
ACCOUNTS RECEIVABLE (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Receivables [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | Accounts receivable consisted of the following as of the dates set forth below (amounts in thousands): June 30, December 31, Accounts receivable $ 275,508 $ 245,236 Allowance for doubtful accounts (3,502 ) (3,404 ) Accounts receivable, net $ 272,006 $ 241,832 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current [Table Text Block] | Inventories consisted of the following as of the dates set forth below (amounts in thousands): June 30, December 31, Raw material $ 103,185 $ 110,806 Work-in-process 54,524 55,543 Finished goods 227,659 229,386 $ 385,368 $ 395,735 |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT, NET (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment [Table Text Block] | Property, plant and equipment, net consisted of the following as of the dates set forth below (amounts in thousands): June 30, December 31, Land and improvements $ 44,198 $ 43,562 Buildings and improvements 258,703 255,451 Machinery and equipment 603,337 592,932 Tools, dies and molds 110,835 109,537 Construction-in-process 18,963 18,867 1,036,036 1,020,349 Less accumulated depreciation (660,039 ) (635,477 ) $ 375,997 $ 384,872 Depreciation on property, plant and equipment for the six months ended June 30, 2019 and 2018 , totaled $26.1 million and $28.3 million , respectively. |
INTANGIBLE ASSETS (Tables)
INTANGIBLE ASSETS (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets and Goodwill [Table Text Block] | The components of intangible assets consisted of the following as of the dates set forth below (amounts in thousands): Weighted Average Useful Lives (in years) June 30, 2019 June 30, December 31, Amortizable intangible assets: Customer relationships 8.2 $ 12,638 $ 12,967 Patents, trademarks and other 7.6 11,445 11,356 Total at cost 24,083 24,323 Less accumulated amortization (13,287 ) (12,676 ) $ 10,796 $ 11,647 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | The estimated aggregate amortization expense at June 30, 2019 , for each of the years (or other periods) set forth below was as follows (amounts in thousands): July 1 - December 31, 2019 $ 1,123 2020 2,090 2021 1,372 2022 988 2023 988 Thereafter 4,235 $ 10,796 |
WARRANTY (Tables)
WARRANTY (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Product Warranties Disclosures [Abstract] | |
Schedule of Product Warranty Liability [Table Text Block] | Changes in the warranty liability during the six months ended June 30, 2019 and 2018, respectively, consisted of the following (amounts in thousands): 2019 2018 Warranty liability, January 1 $ 16,327 $ 18,612 Provision for warranty liabilities 1,722 4,213 Warranty payments made (2,987 ) (3,818 ) Warranty liability, June 30 $ 15,062 $ 19,007 |
REVOLVING CREDIT FACILITY AND_2
REVOLVING CREDIT FACILITY AND LONG-TERM DEBT (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Debt Instrument [Line Items] | |
Schedule of Long-term Debt Instruments [Table Text Block] | Long-term debt consisted of the following as of the dates set forth below (amounts in thousands): June 30, 2019 Principal Balance Unamortized Debt Issuance Net Carrying Amount 6.50% senior secured notes due 2023 $ 400,000 $ (4,476 ) $ 395,524 Titan Europe credit facilities 44,107 — 44,107 Revolving credit facility 41,000 — 41,000 Other debt 33,366 — 33,366 Capital leases 2,757 — 2,757 Total debt 521,230 (4,476 ) 516,754 Less amounts due within one year 71,366 — 71,366 Total long-term debt $ 449,864 $ (4,476 ) $ 445,388 December 31, 2018 Principal Balance Unamortized Debt Issuance Net Carrying Amount 6.50% senior secured notes due 2023 $ 400,000 $ (4,897 ) $ 395,103 Titan Europe credit facilities 35,115 — 35,115 Other debt 28,429 — 28,429 Capital leases 2,810 — 2,810 Total debt 466,354 (4,897 ) 461,457 Less amounts due within one year 51,885 — 51,885 Total long-term debt $ 414,469 $ (4,897 ) $ 409,572 |
Schedule of Maturities of Long-term Debt [Table Text Block] | Aggregate principal maturities of long-term debt at June 30, 2019 , for each of the years (or other periods) set forth below were as follows (amounts in thousands): July 1 - December 31, 2019 $ 54,236 2020 19,031 2021 2,545 2022 43,538 2023 401,262 Thereafter 618 $ 521,230 |
REDEEMABLE NONCONTROLLING INT_2
REDEEMABLE NONCONTROLLING INTEREST (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Noncontrolling Interest [Abstract] | |
Redeemable Noncontrolling Interest [Table Text Block] | The following is a reconciliation of redeemable noncontrolling interest as of June 30, 2019 and 2018 (amounts in thousands): 2019 2018 Balance at January 1 $ 119,813 $ 113,193 Reclassification as a result of Agreement regarding put option (49,883 ) — Payment of interest on redeemable noncontrolling interest (16,000 ) — Loss attributable to redeemable noncontrolling interest (599 ) (461 ) Currency translation 749 (2,207 ) Redemption value adjustment 1,437 7,021 Balance at June 30 $ 55,517 $ 117,546 |
LEASE COMMITMENTS (Tables)
LEASE COMMITMENTS (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Lease, Cost [Table Text Block] | Balance Sheet Classification June 30, 2019 Operating lease ROU assets Operating lease assets $ 24,422 Operating lease current liabilities Other current liabilities $ 7,162 Operating lease long-term liabilities Other long-term liabilities 17,451 Total operating lease liabilities $ 24,613 Finance lease, gross Property, plant & equipment, net $ 7,839 Finance lease accumulated depreciation Property, plant & equipment, net (5,143 ) Finance lease, net $ 2,696 Finance lease current liabilities Other current liabilities $ 957 Finance lease long-term liabilities Long-term debt 1,800 Total finance lease liabilities $ 2,757 |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | Operating Leases Finance Leases July 1 - December 31, 2019 $ 5,678 $ 797 2020 7,329 752 2021 5,561 679 2022 3,851 581 2023 2,652 368 Thereafter 4,330 — Total lease payments $ 29,401 $ 3,177 Less imputed interest 4,788 420 $ 24,613 $ 2,757 Weighted average remaining lease term (in years) 4.9 3.6 |
Finance Lease, Liability, Maturity [Table Text Block] | Operating Leases Finance Leases July 1 - December 31, 2019 $ 5,678 $ 797 2020 7,329 752 2021 5,561 679 2022 3,851 581 2023 2,652 368 Thereafter 4,330 — Total lease payments $ 29,401 $ 3,177 Less imputed interest 4,788 420 $ 24,613 $ 2,757 Weighted average remaining lease term (in years) 4.9 3.6 |
EMPLOYEE BENEFIT PLANS (Tables)
EMPLOYEE BENEFIT PLANS (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Retirement Benefits [Abstract] | |
Schedule of Defined Benefit Plans Disclosures [Table Text Block] | The components of net periodic pension cost consisted of the following for the periods set forth below (amounts in thousands): Three months ended Six months ended June 30, June 30, 2019 2018 2019 2018 Service cost $ 205 $ 141 $ 430 $ 278 Interest cost 1,106 1,098 2,229 2,181 Expected return on assets (1,188 ) (1,491 ) (2,377 ) (2,983 ) Amortization of unrecognized prior service cost 57 50 113 100 Amortization of net unrecognized loss 765 690 1,530 1,366 Net periodic pension cost $ 945 $ 488 $ 1,925 $ 942 |
VARIABLE INTEREST ENTITIES (Tab
VARIABLE INTEREST ENTITIES (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Variable Interest Entity, Consolidated, Carrying Amount, Assets and Liabilities, Net [Abstract] | |
Schedule of Variable Interest Entities [Table Text Block] | The following table summarizes the carrying amount of the VIEs’ assets and liabilities included in the Company’s Condensed Consolidated Balance Sheets at June 30, 2019 , and December 31, 2018 (amounts in thousands): June 30, December 31, 2018 Cash and cash equivalents $ 11,842 $ 9,064 Inventory 20,941 12,987 Other current assets 34,048 38,533 Property, plant and equipment, net 29,032 28,057 Other long-term assets 3,795 2,971 Total assets $ 99,658 $ 91,612 Current liabilities $ 41,880 $ 36,246 Other long-term liabilities 6,061 6,353 Total liabilities $ 47,941 $ 42,599 All assets in the above table can only be used to settle obligations of the consolidated VIE to which the respective assets relate. Liabilities are nonrecourse obligations. Amounts presented in the table above are adjusted for intercompany eliminations. The Company holds variable interests in certain VIEs that are not consolidated because Titan is not the primary beneficiary. The Company's involvement with these entities is in the form of direct equity interests and prepayments related to purchases of materials. The maximum exposure to loss as reflected in the table below represents the loss of assets recognized by Titan relating to non-consolidated entities and amounts due to the non-consolidated assets. The assets and liabilities recognized in Titan's Condensed Consolidated Balance Sheets related to Titan's interest in these non-consolidated VIEs and the Company's maximum exposure to loss related to non-consolidated VIEs as of the dates set forth below were as follows (amounts in thousands): June 30, December 31, 2018 Investments $ 3,998 $ 3,985 Other current assets 1,195 1,200 Total VIE assets 5,193 5,185 Accounts payable 1,923 2,350 Maximum exposure to loss $ 7,116 $ 7,535 |
OTHER INCOME (Tables)
OTHER INCOME (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Other Income and Expenses [Abstract] | |
Other Income [Table Text Block] | Other income consisted of the following for the periods set forth below (amounts in thousands): Three months ended Six months ended June 30, June 30, 2019 2018 2019 2018 Equity investment income $ 974 $ 1,067 $ 1,849 $ 2,183 Gain (loss) on sale of assets 397 (4 ) 767 177 Building rental income 479 410 734 988 Interest income 301 532 641 1,149 Other (expense) income (82 ) 472 (926 ) 5,730 $ 2,069 $ 2,477 $ 3,065 $ 10,227 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Earnings per share (EPS) were as follows for the periods presented below (amounts in thousands, except per share data): Three months ended Six months ended June 30, June 30, 2019 2018 2019 2018 Net (loss) income attributable to Titan $ (6,424 ) $ 8,436 $ (4,446 ) $ 26,083 Redemption value adjustment (661 ) (4,678 ) (1,437 ) (7,021 ) Net (loss) income applicable to common shareholders $ (7,085 ) $ 3,758 $ (5,883 ) $ 19,062 Determination of shares: Weighted average shares outstanding (basic) 60,000 59,750 59,973 59,731 Effect of equity awards/trusts — 128 — 146 Weighted average shares outstanding (diluted) 60,000 59,878 59,973 59,877 Earnings per share: Basic and diluted (0.12 ) 0.06 (0.10 ) 0.32 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting Information [Line Items] | |
Reconciliation of Revenue from Segments to Consolidated [Table Text Block] | The table below presents information about certain operating results, separated by market segments, for each of the three and six months ended June 30, 2019 and 2018 (amounts in thousands): Three months ended Six months ended June 30, June 30, 2019 2018 2019 2018 Net sales Agricultural $ 164,284 $ 186,870 $ 356,014 $ 381,037 Earthmoving/construction 184,782 198,963 361,527 387,696 Consumer 41,531 43,071 83,430 85,553 $ 390,597 $ 428,904 $ 800,971 $ 854,286 Gross profit Agricultural $ 14,247 $ 27,270 $ 36,372 $ 57,231 Earthmoving/construction 19,701 24,260 37,871 46,722 Consumer 4,360 6,782 9,329 13,920 $ 38,308 $ 58,312 $ 83,572 $ 117,873 (Loss) income from operations Agricultural $ 4,365 $ 19,002 $ 18,293 $ 40,323 Earthmoving/construction 5,697 11,575 11,225 21,528 Consumer 1,228 3,651 3,349 7,598 Corporate & Unallocated (13,720 ) (15,264 ) (31,161 ) (31,103 ) (Loss) income from operations (2,430 ) 18,964 1,706 38,346 Interest expense (8,295 ) (7,672 ) (16,228 ) (15,190 ) Foreign exchange (loss) gain (1,239 ) (3,610 ) 4,484 (8,042 ) Other income, net 2,069 2,477 3,065 10,227 (Loss) income before income taxes $ (9,895 ) $ 10,159 $ (6,973 ) $ 25,341 |
Reconciliation of Assets from Segment to Consolidated [Table Text Block] | Assets by segment were as follows as of the dates set forth below (amounts in thousands): June 30, December 31, Total assets Agricultural $ 443,628 $ 464,828 Earthmoving/construction 605,586 543,927 Consumer 119,600 129,994 Corporate & Unallocated 100,714 112,507 $ 1,269,528 $ 1,251,256 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value, Measurement Inputs, Disclosure [Table Text Block] | Assets and liabilities measured at fair value on a recurring basis consisted of the following as of the dates set forth below (amounts in thousands): June 30, 2019 December 31, 2018 Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Derivative financial instruments asset $ — $ — $ — $ — $ 902 $ — $ 902 $ — |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Accumulated Other Comprehensive Loss | Accumulated other comprehensive loss consisted of the following for the periods presented below (amounts in thousands): Currency Translation Adjustments Unrecognized Losses and Prior Service Cost Total Balance at April 1, 2019 $ (181,075 ) $ (32,244 ) $ (213,319 ) Currency translation adjustments 4,785 — 4,785 Defined benefit pension plan entries: Amortization of unrecognized losses and prior service cost, net of tax of $110 — 538 538 Balance at June 30, 2019 $ (176,290 ) $ (31,706 ) $ (207,996 ) Currency Translation Adjustments Unrecognized Losses and Prior Service Cost Total Balance at January 1, 2019 $ (175,794 ) $ (27,777 ) $ (203,571 ) Currency translation adjustments (496 ) — (496 ) Defined benefit pension plan entries: Amortization of unrecognized losses and prior service cost, net of tax of $232 — 1,004 1,004 Reclassification from AOCI to retained earnings - adoption of ASU 2018-02 — (4,933 ) (4,933 ) Balance at June 30, 2019 $ (176,290 ) $ (31,706 ) $ (207,996 ) |
SUBSIDIARY GUARANTOR FINANCIA_2
SUBSIDIARY GUARANTOR FINANCIAL INFORMATION (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Condensed Income Statement [Table Text Block] | (Amounts in thousands) Condensed Consolidating Statements of Operations For the Three Months Ended June 30, 2019 Titan Intl., Inc. (Parent) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net sales $ — $ 111,162 $ 391,301 $ (111,866 ) $ 390,597 Cost of sales (11 ) 99,275 364,891 (111,866 ) 352,289 Gross profit 11 11,887 26,410 — 38,308 Selling, general and administrative expenses 2,030 11,596 22,120 — 35,746 Research and development expenses 228 756 1,560 — 2,544 Royalty expense 401 1,073 974 — 2,448 (Loss) income from operations (2,648 ) (1,538 ) 1,756 — (2,430 ) Interest expense (7,243 ) — (1,052 ) — (8,295 ) Intercompany interest income (expense) 644 880 (1,524 ) — — Foreign exchange gain (loss) 16 55 (1,310 ) — (1,239 ) Other income (expense) 612 (798 ) 2,255 — 2,069 (Loss) income before income taxes (8,619 ) (1,401 ) 125 — (9,895 ) (Benefit) provision for income taxes (7,676 ) 132 4,326 — (3,218 ) Equity in earnings of subsidiaries (5,734 ) — (205 ) 5,939 — Net (loss) income (6,677 ) (1,533 ) (4,406 ) 5,939 (6,677 ) Net loss attributable to noncontrolling interests — — (253 ) — (253 ) Net (loss) income attributable to Titan $ (6,677 ) $ (1,533 ) $ (4,153 ) $ 5,939 $ (6,424 ) (Amounts in thousands) Condensed Consolidating Statements of Operations For the Three Months Ended June 30, 2018 Titan Intl., Inc. (Parent) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net sales $ — $ 166,757 $ 262,147 $ — $ 428,904 Cost of sales 138 140,208 230,246 — 370,592 Gross (loss) profit (138 ) 26,549 31,901 — 58,312 Selling, general and administrative expenses 1,678 16,985 15,297 — 33,960 Research and development expenses 253 983 1,518 — 2,754 Royalty expense 628 940 1,066 — 2,634 (Loss) income from operations (2,697 ) 7,641 14,020 — 18,964 Interest expense (6,826 ) — (846 ) — (7,672 ) Intercompany interest income (expense) 628 909 (1,537 ) — — Foreign exchange loss — (662 ) (2,948 ) — (3,610 ) Other income (loss) 959 (147 ) 1,665 — 2,477 (Loss) income before income taxes (7,936 ) 7,741 10,354 — 10,159 (Benefit) provision for income taxes (2,390 ) 3,044 1,029 — 1,683 Equity in earnings of subsidiaries 14,022 — 209 (14,231 ) — Net income (loss) 8,476 4,697 9,534 (14,231 ) 8,476 Net income attributable to noncontrolling interests — — 40 — 40 Net income (loss) attributable to Titan $ 8,476 $ 4,697 $ 9,494 $ (14,231 ) $ 8,436 (Amounts in thousands) Condensed Consolidating Statements of Operations For the Six Months Ended June 30, 2019 Titan Intl., Inc. (Parent) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net sales $ — $ 235,943 $ 801,576 $ (236,548 ) $ 800,971 Cost of sales 141 205,791 748,015 (236,548 ) 717,399 Gross (loss) profit (141 ) 30,152 53,561 — 83,572 Selling, general and administrative expenses 3,181 23,204 45,266 — 71,651 Research and development expenses 492 1,585 3,084 — 5,161 Royalty expense 1,064 2,145 1,845 — 5,054 (Loss) income from operations (4,878 ) 3,218 3,366 — 1,706 Interest expense (14,170 ) — (2,058 ) — (16,228 ) Intercompany interest income (expense) 1,274 1,890 (3,164 ) — — Foreign exchange (loss) gain (22 ) (4 ) 4,510 — 4,484 Other income (expense) 943 (1,077 ) 3,199 — 3,065 (Loss) income before income taxes (16,853 ) 4,027 5,853 — (6,973 ) (Benefit) provision for income taxes (7,026 ) 283 5,440 — (1,303 ) Equity in earnings of subsidiaries 4,157 — 531 (4,688 ) — Net (loss) income (5,670 ) 3,744 944 (4,688 ) (5,670 ) Net loss attributable to noncontrolling interests — — (1,224 ) — (1,224 ) Net (loss) income attributable to Titan $ (5,670 ) $ 3,744 $ 2,168 $ (4,688 ) $ (4,446 ) (Amounts in thousands) Condensed Consolidating Statements of Operations For the Six Months Ended June 30, 2018 Titan Intl., Inc. (Parent) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net sales $ — $ 337,517 $ 516,769 $ — $ 854,286 Cost of sales 246 281,738 454,429 — 736,413 Gross (loss) profit (246 ) 55,779 62,340 — 117,873 Selling, general and administrative expenses 2,873 32,260 33,466 — 68,599 Research and development expenses 493 1,969 3,169 — 5,631 Royalty expense 881 2,453 1,963 — 5,297 (Loss) income from operations (4,493 ) 19,097 23,742 — 38,346 Interest expense (13,639 ) — (1,551 ) — (15,190 ) Intercompany interest income (expense) 1,251 1,922 (3,173 ) — — Foreign exchange loss — (670 ) (7,372 ) — (8,042 ) Other income (expense) 6,628 (313 ) 3,912 — 10,227 (Loss) income before income taxes (10,253 ) 20,036 15,558 — 25,341 (Benefit) provision for income taxes (12,456 ) 7,304 6,049 — 897 Equity in earnings of subsidiaries 22,241 — 4,546 (26,787 ) — Net income (loss) 24,444 12,732 14,055 (26,787 ) 24,444 Net loss attributable to noncontrolling interests — — (1,639 ) — (1,639 ) Net income (loss) attributable to Titan $ 24,444 $ 12,732 $ 15,694 $ (26,787 ) $ 26,083 |
Condensed Statement of Comprehensive Income [Table Text Block] | (Amounts in thousands) Condensed Consolidating Statements of Comprehensive Income (Loss) For the Three Months Ended June 30, 2019 Titan Intl., Inc. (Parent) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net (loss) income $ (6,677 ) $ (1,533 ) $ (4,406 ) $ 5,939 $ (6,677 ) Currency translation adjustment 5,423 — 5,423 (5,423 ) 5,423 Pension liability adjustments, net of tax 538 753 (215 ) (538 ) 538 Comprehensive (loss) income (716 ) (780 ) 802 (22 ) (716 ) Net comprehensive income attributable to redeemable and noncontrolling interests — — 385 — 385 Comprehensive (loss) income attributable to Titan $ (716 ) $ (780 ) $ 417 $ (22 ) $ (1,101 ) (Amounts in thousands) Condensed Consolidating Statements of Comprehensive Income (Loss) For the Three Months Ended June 30, 2018 Titan Intl., Inc. (Parent) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net income (loss) $ 8,476 $ 4,697 $ 9,534 $ (14,231 ) $ 8,476 Currency translation adjustment (38,338 ) — (38,338 ) 38,338 (38,338 ) Pension liability adjustments, net of tax 690 646 44 (690 ) 690 Comprehensive (loss) income (29,172 ) 5,343 (28,760 ) 23,417 (29,172 ) Net comprehensive loss attributable to redeemable and noncontrolling interests — — (2,185 ) — (2,185 ) Comprehensive (loss) income attributable to Titan $ (29,172 ) $ 5,343 $ (26,575 ) $ 23,417 $ (26,987 ) (Amounts in thousands) Condensed Consolidating Statements of Comprehensive Income (Loss) For the Six Months Ended June 30, 2019 Titan Intl., Inc. (Parent) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net (loss) income $ (5,670 ) $ 3,744 $ 944 $ (4,688 ) $ (5,670 ) Currency translation adjustment 1,044 — 1,044 (1,044 ) 1,044 Pension liability adjustments, net of tax 1,004 1,506 (502 ) (1,004 ) 1,004 Comprehensive (loss) income (3,622 ) 5,250 1,486 (6,736 ) (3,622 ) Net comprehensive income attributable to redeemable and noncontrolling interests — — 317 — 317 Comprehensive (loss) income attributable to Titan $ (3,622 ) $ 5,250 $ 1,169 $ (6,736 ) $ (3,939 ) (Amounts in thousands) Condensed Consolidating Statements of Comprehensive Income (Loss) For the Six Months Ended June 30, 2018 Titan Intl., Inc. (Parent) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net income (loss) $ 24,444 $ 12,732 $ 14,055 $ (26,787 ) $ 24,444 Currency translation adjustment (30,276 ) — (30,276 ) 30,276 (30,276 ) Pension liability adjustments, net of tax 1,573 1,292 281 (1,573 ) 1,573 Comprehensive (loss) income (4,259 ) 14,024 (15,940 ) 1,916 (4,259 ) Net comprehensive loss attributable to redeemable and noncontrolling interests — — (3,225 ) — (3,225 ) Comprehensive (loss) income attributable to Titan $ (4,259 ) $ 14,024 $ (12,715 ) $ 1,916 $ (1,034 ) |
Condensed Balance Sheet [Table Text Block] | (Amounts in thousands) Condensed Consolidating Balance Sheets June 30, 2019 Titan Intl., Inc. (Parent) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Assets Cash and cash equivalents $ 6,352 $ 3 $ 60,011 $ — $ 66,366 Accounts receivable, net — 73 271,933 — 272,006 Inventories — 55,796 329,572 — 385,368 Prepaid and other current assets 2,996 17,740 41,737 — 62,473 Total current assets 9,348 73,612 703,253 — 786,213 Property, plant and equipment, net 11,311 94,374 270,312 — 375,997 Investment in subsidiaries 750,874 — 65,574 (816,448 ) — Other assets 2,721 4,970 99,627 — 107,318 Total assets $ 774,254 $ 172,956 $ 1,138,766 $ (816,448 ) $ 1,269,528 Liabilities and Equity Short-term debt $ 456 $ — $ 70,910 $ — $ 71,366 Accounts payable 4,532 27,947 176,943 — 209,422 Other current liabilities 16,345 21,026 74,463 — 111,834 Total current liabilities 21,333 48,973 322,316 — 392,622 Long-term debt 437,903 — 7,485 — 445,388 Other long-term liabilities 5,123 19,597 63,190 — 87,910 Intercompany accounts 17,379 (407,724 ) 390,345 — — Redeemable noncontrolling interest — — 55,517 — 55,517 Titan shareholders' equity 292,516 512,110 294,756 (816,448 ) 282,934 Noncontrolling interests — — 5,157 — 5,157 Total liabilities and equity $ 774,254 $ 172,956 $ 1,138,766 $ (816,448 ) $ 1,269,528 (Amounts in thousands) Condensed Consolidating Balance Sheets December 31, 2018 Titan Intl., Inc. (Parent) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Assets Cash and cash equivalents $ 23,630 $ 4 $ 58,051 $ — $ 81,685 Accounts receivable, net — — 241,832 — 241,832 Inventories — 68,858 326,877 — 395,735 Prepaid and other current assets 3,853 18,845 37,531 — 60,229 Total current assets 27,483 87,707 664,291 — 779,481 Property, plant and equipment, net 12,493 98,856 273,523 — 384,872 Investment in subsidiaries 749,645 — 66,308 (815,953 ) — Other assets 6,268 944 79,691 — 86,903 Total assets $ 795,889 $ 187,507 $ 1,083,813 $ (815,953 ) $ 1,251,256 Liabilities and Equity Short-term debt $ 419 $ — $ 51,466 $ — $ 51,885 Accounts payable 1,447 29,922 180,760 — 212,129 Other current liabilities 22,065 20,051 68,938 — 111,054 Total current liabilities 23,931 49,973 301,164 — 375,068 Long-term debt 396,700 — 12,872 — 409,572 Other long-term liabilities 9,268 17,521 49,917 — 76,706 Intercompany accounts 77,363 (390,382 ) 313,019 — — Redeemable noncontrolling interest — — 119,813 — 119,813 Titan shareholders' equity 288,627 510,395 295,979 (815,953 ) 279,048 Noncontrolling interests — — (8,951 ) — (8,951 ) Total liabilities and equity $ 795,889 $ 187,507 $ 1,083,813 $ (815,953 ) $ 1,251,256 |
Condensed Cash Flow Statement [Table Text Block] | (Amounts in thousands) Condensed Consolidating Statements of Cash Flows For the Six Months Ended June 30, 2019 Titan Intl., Inc. (Parent) Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidated Net cash (used for) provided by operating activities $ (16,658 ) $ 4,213 $ 2,444 $ (10,001 ) Cash flows from investing activities: Capital expenditures (21 ) (4,396 ) (12,308 ) (16,725 ) Payment related to redeemable noncontrolling interest (41,000 ) — — (41,000 ) Other, net — 182 1,053 1,235 Net cash used for investing activities (41,021 ) (4,214 ) (11,255 ) (56,490 ) Cash flows from financing activities: Proceeds from borrowings 50,000 — 42,723 92,723 Payment on debt (9,000 ) — (33,083 ) (42,083 ) Dividends paid (599 ) — — (599 ) Net cash provided by financing activities 40,401 — 9,640 50,041 Effect of exchange rate change on cash — — 1,131 1,131 Net (decrease) increase in cash and cash equivalents (17,278 ) (1 ) 1,960 (15,319 ) Cash and cash equivalents, beginning of period 23,630 4 58,051 81,685 Cash and cash equivalents, end of period $ 6,352 $ 3 $ 60,011 $ 66,366 (Amounts in thousands) Condensed Consolidating Statements of Cash Flows For the Six Months Ended June 30, 2018 Titan Intl., Inc. (Parent) Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidated Net cash (used for) provided by operating activities $ (24,585 ) $ 3,265 $ (8,607 ) $ (29,927 ) Cash flows from investing activities: Capital expenditures (83 ) (3,274 ) (15,059 ) (18,416 ) Other, net 220 1 663 884 Net cash provided by (used for) investing activities 137 (3,273 ) (14,396 ) (17,532 ) Cash flows from financing activities: Proceeds from borrowings — — 40,078 40,078 Payment on debt — — (24,527 ) (24,527 ) Dividends paid (598 ) — — (598 ) Net cash (used for) provided by financing activities (598 ) — 15,551 14,953 Effect of exchange rate change on cash — — (4,573 ) (4,573 ) Net decrease in cash and cash equivalents (25,046 ) (8 ) (12,025 ) (37,079 ) Cash and cash equivalents, beginning of period 59,740 13 83,817 143,570 Cash and cash equivalents, end of period $ 34,694 $ 5 $ 71,792 $ 106,491 |
ACCOUNTING POLICIES (Details)
ACCOUNTING POLICIES (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Selling, General and Administrative Expense | $ 35,746 | $ 33,960 | $ 71,651 | $ 68,599 | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 390,597 | $ 428,904 | 800,971 | $ 854,286 | |||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | $ (587) | $ 123 | |||||
Long-term Debt | $ 395,500 | $ 395,500 | |||||
Common Stock, Dividends, Per Share, Declared | $ 0.005 | $ 0.005 | $ 0.010 | $ 0.010 | |||
Inventory, Net | $ 385,368 | $ 385,368 | $ 395,735 | ||||
Other current liabilities | 111,834 | 111,834 | 111,054 | ||||
Retained Earnings (Accumulated Deficit) | (29,751) | (29,751) | (29,048) | ||||
Stockholders' Equity Attributable to Noncontrolling Interest | 5,157 | 5,157 | (8,951) | ||||
Operating Income (Loss) | (2,430) | $ 18,964 | 1,706 | $ 38,346 | |||
Net (loss) income | $ (6,677) | $ 8,476 | $ (5,670) | $ 24,444 | |||
Earnings Per Share, Basic | $ (0.12) | $ 0.06 | $ (0.10) | $ 0.32 | |||
Debt Instrument, Fair Value Disclosure | $ 357,800 | $ 357,800 | |||||
Senior Secured Notes 6.50 Percent [Member] [Member] | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.50% | 6.50% | |||||
Long-term Debt | $ 400,000 | $ 400,000 | 400,000 | ||||
Operating Segments [Member] | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Revenue from Contract with Customer, Excluding Assessed Tax | 390,597 | $ 428,904 | 800,971 | $ 854,286 | |||
Operating Income (Loss) | (2,430) | 18,964 | 1,706 | 38,346 | |||
Operating Segments [Member] | Agricultural [Member] | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Revenue from Contract with Customer, Excluding Assessed Tax | 164,284 | 186,870 | 356,014 | 381,037 | |||
Operating Income (Loss) | 4,365 | 19,002 | 18,293 | 40,323 | |||
Operating Segments [Member] | Earthmoving/construction [Member] | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Revenue from Contract with Customer, Excluding Assessed Tax | 184,782 | 198,963 | 361,527 | 387,696 | |||
Operating Income (Loss) | 5,697 | 11,575 | 11,225 | 21,528 | |||
Operating Segments [Member] | Consumer [Member] | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Revenue from Contract with Customer, Excluding Assessed Tax | 41,531 | 43,071 | 83,430 | 85,553 | |||
Operating Income (Loss) | $ 1,228 | 3,651 | $ 3,349 | 7,598 | |||
New Accounting Pronouncement, Early Adoption, Effect [Member] | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Selling, General and Administrative Expense | (2,739) | (4,021) | |||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | $ 7,400 | ||||||
Operating Income (Loss) | 2,739 | 4,021 | |||||
Net (loss) income | $ 2,739 | $ 4,021 | |||||
Earnings Per Share, Basic | $ 0.04 | $ 0.07 | |||||
Previously Reported [Member] | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Selling, General and Administrative Expense | $ 36,699 | $ 72,620 | |||||
Operating Income (Loss) | 16,225 | 34,325 | |||||
Net (loss) income | $ 5,737 | $ 20,423 | |||||
Earnings Per Share, Basic | $ 0.02 | $ 0.25 |
ACCOUNTS RECEIVABLE (Details)
ACCOUNTS RECEIVABLE (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Receivables [Abstract] | ||
Accounts receivable | $ 275,508 | $ 245,236 |
Allowance for doubtful accounts | 3,502 | 3,404 |
Accounts receivable, net | $ 272,006 | $ 241,832 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Raw material | $ 103,185 | $ 110,806 |
Work-in-process | 54,524 | 55,543 |
Finished goods | 227,659 | 229,386 |
Inventory, Gross | $ 385,368 | $ 395,735 |
PROPERTY, PLANT AND EQUIPMENT_3
PROPERTY, PLANT AND EQUIPMENT, NET (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | $ 1,036,036 | $ 1,020,349 | |
Less accumulated depreciation | (660,039) | (635,477) | |
Property, Plant and Equipment, Net | 375,997 | 384,872 | |
Depreciation | 26,100 | $ 28,300 | |
Land and Land Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 44,198 | 43,562 | |
Building and Building Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 258,703 | 255,451 | |
Machinery and Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 603,337 | 592,932 | |
Tools, Dies and Molds [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 110,835 | 109,537 | |
Construction in Progress [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | $ 18,963 | $ 18,867 |
INTANGIBLE ASSETS (Details)
INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 8 years 2 months 12 days | ||
Finite-Lived Customer Relationships, Gross | $ 12,638 | $ 12,967 | |
Finite-Lived Intangible Asset, Useful Life | 7 years 7 months 6 days | ||
Finite-Lived Trademarks, Gross | $ 11,445 | 11,356 | |
Finite-Lived Intangible Assets, Gross | 24,083 | 24,323 | |
Finite-Lived Intangible Assets, Accumulated Amortization | (13,287) | (12,676) | |
Intangible Assets, Net (Excluding Goodwill) | 10,796 | $ 11,647 | |
Amortization of Intangible Assets | 1,100 | $ 1,300 | |
Finite-Lived Intangible Assets, Amortization Expense, Maturity Schedule [Abstract] | |||
July 1 - December 31, 2019 | 1,123 | ||
2020 | 2,090 | ||
2021 | 1,372 | ||
2022 | 988 | ||
2023 | 988 | ||
Thereafter | $ 4,235 |
WARRANTY (Details)
WARRANTY (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Product Warranty Liability [Line Items] | ||
Warranty liability at January 1 | $ 16,327 | $ 18,612 |
Provision for warranty liabilities | 1,722 | 4,213 |
Warranty payments made | (2,987) | (3,818) |
Warranty liability at June 30 | $ 15,062 | $ 19,007 |
REVOLVING CREDIT FACILITY AND_3
REVOLVING CREDIT FACILITY AND LONG-TERM DEBT (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Debt Instruments [Abstract] | ||
6.50% senior secured notes due 2023 | $ 395,500 | |
Long-term Line of Credit, Noncurrent | 41,000 | |
Capital leases | 2,757 | $ 2,810 |
Long-term Debt and Capital Lease Obligations, Including Current Maturities | 516,754 | 461,457 |
Short-term debt | 71,366 | 51,885 |
Long-term debt | 445,388 | 409,572 |
Debt Instrument, Unamortized Discount | (4,476) | (4,897) |
Debt Instrument, Unamortized Discount, Noncurrent | 0 | 0 |
Debt Instrument, Unamortized Discount, Current | 0 | 0 |
Debt Instrument, Unamortized Discount (Premium), Net | (4,476) | (4,897) |
Maturities of Long-term Debt [Abstract] | ||
July 1 - December 31, 2019 | 54,236 | |
2020 | 19,031 | |
2021 | 2,545 | |
2022 | 43,538 | |
2023 | 401,262 | |
Thereafter | 618 | |
Line of Credit Facility, Maximum Borrowing Capacity | 125,000 | |
Letters of Credit Outstanding, Amount | 10,300 | |
Line of Credit Facility, Current Borrowing Capacity | $ 57,300 | |
Senior Secured Notes 6.50 Percent [Member] [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Interest Rate, Effective Percentage | 6.79% | |
Debt Instruments [Abstract] | ||
6.50% senior secured notes due 2023 | $ 400,000 | 400,000 |
Long-term Debt | 395,524 | 395,103 |
Debt Instrument, Unamortized Discount | $ (4,476) | (4,897) |
Maturities of Long-term Debt [Abstract] | ||
Debt Instrument, Interest Rate, Stated Percentage | 6.50% | |
Titan Europe [Member] | ||
Debt Instruments [Abstract] | ||
Other Borrowings | $ 44,107 | 35,115 |
Debt Instrument, Unamortized Discount, Noncurrent | 0 | 0 |
Other Debt Obligations [Member] | ||
Debt Instruments [Abstract] | ||
Other debt | 33,366 | 28,429 |
Debt Instrument, Unamortized Discount, Noncurrent | 0 | 0 |
Titan Brazil [Member] | ||
Debt Instruments [Abstract] | ||
Other debt | 8,700 | |
Voltyre-Prom [Member] | ||
Debt Instruments [Abstract] | ||
Other debt | 22,500 | |
Long-term Debt [Member] | ||
Debt Instruments [Abstract] | ||
Long-term Debt and Capital Lease Obligations, Including Current Maturities | 521,230 | 466,354 |
Long-term debt | $ 449,864 | $ 414,469 |
DERIVATIVE FINANCIAL INSTRUME_2
DERIVATIVE FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||
Derivative, Gain (Loss) on Derivative, Net | $ 0.1 | $ (0.4) | $ 0 | $ (0.2) |
REDEEMABLE NONCONTROLLING INT_3
REDEEMABLE NONCONTROLLING INTEREST (Details) - USD ($) $ in Thousands | Jul. 31, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 |
Redeemable Noncontrolling Interest [Line Items] | |||||||
Payment related to redeemable noncontrolling interest agreement | $ 41,000 | $ 41,000 | $ 0 | ||||
Equity Method Investment, Ownership Percentage | 21.40% | 21.40% | |||||
Balance at January 1 | $ 119,813 | $ 119,813 | |||||
Noncontrolling Interest, Period Increase (Decrease) | (49,883) | 0 | |||||
Payment of interest on redeemable noncontrolling interest | 16,000 | 0 | |||||
Net Income (Loss) Attributable to Redeemable Noncontrolling Interest | $ (265) | (334) | $ 54 | $ (515) | (599) | (461) | |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, before Tax, Portion Attributable to Noncontrolling Interest | 321 | 428 | (2,555) | 348 | 749 | (2,207) | |
Redemption value adjustment | 661 | 776 | 4,678 | 2,343 | 1,437 | $ 7,021 | |
Balance at June 30 | 55,517 | $ 55,517 | |||||
AOCI Attributable to Parent [Member] | |||||||
Redeemable Noncontrolling Interest [Line Items] | |||||||
Noncontrolling Interest, Period Increase (Decrease) | (4,325) | ||||||
Additional paid-in capital [Member] | |||||||
Redeemable Noncontrolling Interest [Line Items] | |||||||
Noncontrolling Interest, Period Increase (Decrease) | 9,437 | (1,032) | |||||
Redemption value adjustment | $ (661) | $ (776) | $ (4,678) | $ (2,343) | |||
Subsequent Event [Member] | |||||||
Redeemable Noncontrolling Interest [Line Items] | |||||||
Payment related to redeemable noncontrolling interest agreement | $ 30,700 | ||||||
Equity Method Investment, Ownership Percentage | 64.30% | ||||||
Subsequent Event [Member] | RDIF [Member] | |||||||
Redeemable Noncontrolling Interest [Line Items] | |||||||
Equity Method Investment, Ownership Percentage | 35.70% |
LEASE COMMITMENTS (Details)
LEASE COMMITMENTS (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Dec. 31, 2018 | |
Leases [Abstract] | ||
Operating Lease, Right-of-Use Asset | $ 24,422 | $ 0 |
Operating Lease, Liability, Current | 7,162 | |
Operating Lease, Liability, Noncurrent | 17,451 | |
Operating Lease, Liability | 24,613 | |
Finance Lease, Gross | 7,839 | |
Finance Lease Accumulated Depreciation | 5,143 | |
Finance Lease, Right-of-Use Asset | 2,696 | |
Finance Lease, Liability, Current | 957 | |
Finance Lease, Liability, Noncurrent | 1,800 | |
Finance Lease, Liability | 2,757 | |
Operating Lease Liabilities, Payments Due [Abstract] | ||
July 1 - December 31, 2019 | 5,678 | |
2020 | 7,329 | |
2021 | 5,561 | |
2022 | 3,851 | |
2023 | 2,652 | |
Thereafter | 4,330 | |
Total lease payments | 29,401 | |
Less imputed interest | 4,788 | |
Finance Lease Liabilities, Payments, Due [Abstract] | ||
July 1 - December 31, 2019 | 797 | |
2020 | 752 | |
2021 | 679 | |
2022 | 581 | |
2023 | 368 | |
Thereafter | 0 | |
Total lease payment | 3,177 | |
Lease imputed interest | $ 420 | |
Operating Lease, Weighted Average Remaining Lease Term | 4 years 10 months 24 days | |
Finance Lease, Weighted Average Remaining Lease Term | 3 years 7 months 6 days | |
Operating Lease, Payments | $ 5,000 | |
Finance Lease, Interest Payment on Liability | $ 100 |
EMPLOYEE BENEFIT PLANS (Details
EMPLOYEE BENEFIT PLANS (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Plan Assets, Contributions by Employer | $ 1,200 | |||
Defined Benefit Plan, Estimated Future Employer Contributions in Current Fiscal Year | $ 1,600 | 1,600 | ||
Pension Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 205 | $ 141 | 430 | $ 278 |
Interest cost | 1,106 | 1,098 | 2,229 | 2,181 |
Expected return on assets | (1,188) | (1,491) | (2,377) | (2,983) |
Amortization of unrecognized prior service cost | 57 | 50 | 113 | 100 |
Amortization of net unrecognized loss | 765 | 690 | 1,530 | 1,366 |
Net periodic pension cost | $ 945 | $ 488 | $ 1,925 | $ 942 |
VARIABLE INTEREST ENTITIES (Det
VARIABLE INTEREST ENTITIES (Details) - USD ($) $ in Thousands | 6 Months Ended | |||||
Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Dec. 31, 2016 | |
Variable Interest Entity [Line Items] | ||||||
Cash and Cash Equivalents, at Carrying Value | $ 66,366 | $ 81,685 | $ 106,491 | $ 143,570 | $ 106,491 | $ 143,570 |
Inventories | 385,368 | 395,735 | ||||
Property, Plant and Equipment, Net | 375,997 | 384,872 | ||||
Other Assets, Noncurrent | 107,318 | 86,903 | ||||
Total assets | 1,269,528 | 1,251,256 | ||||
Total current liabilities | 392,622 | 375,068 | ||||
Total liabilities | 925,920 | 861,346 | ||||
Accounts payable | 209,422 | 212,129 | ||||
Variable Interest Entity, Primary Beneficiary [Member] | ||||||
Variable Interest Entity [Line Items] | ||||||
Cash and Cash Equivalents, at Carrying Value | 11,842 | 9,064 | ||||
Inventories | 20,941 | 12,987 | ||||
Other Assets, Current | 34,048 | 38,533 | ||||
Property, Plant and Equipment, Net | 29,032 | 28,057 | ||||
Other Assets, Noncurrent | 3,795 | 2,971 | ||||
Total assets | 99,658 | 91,612 | ||||
Total current liabilities | 41,880 | 36,246 | ||||
Liabilities, Noncurrent | 6,061 | 6,353 | ||||
Total liabilities | 47,941 | 42,599 | ||||
Variable Interest Entity, Not Primary Beneficiary [Member] | ||||||
Variable Interest Entity [Line Items] | ||||||
Other Assets, Current | 1,195 | 1,200 | ||||
Investments | 3,998 | 3,985 | ||||
Total VIE assets | 5,193 | 5,185 | ||||
Accounts payable | 1,923 | 2,350 | ||||
Maximum exposure to loss | $ 7,116 | $ 7,535 | ||||
Titan Tire Reclamation Corporation [Member] | ||||||
Variable Interest Entity [Line Items] | ||||||
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 50.00% | |||||
Titan National Australia Holdings [Member] | ||||||
Variable Interest Entity [Line Items] | ||||||
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 40.00% | |||||
Titan Tire Russia B.V. [Member] | ||||||
Variable Interest Entity [Line Items] | ||||||
Noncontrolling Interest, Ownership Percentage by Parent | 43.00% |
ROYALTY EXPENSE (Details)
ROYALTY EXPENSE (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Other Income and Expenses [Abstract] | ||||
Royalty expense | $ 2,448 | $ 2,634 | $ 5,054 | $ 5,297 |
OTHER INCOME (Details)
OTHER INCOME (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Other Income and Expenses [Abstract] | ||||
Equity investment income | $ 974 | $ 1,067 | $ 1,849 | $ 2,183 |
Gain (Loss) on Disposition of Assets | 397 | (4) | 767 | 177 |
Building rental income | 479 | 410 | 734 | 988 |
Interest income | 301 | 532 | 641 | 1,149 |
Other (expense) income | (82) | 472 | (926) | 5,730 |
Nonoperating Income (Expense) | $ 2,069 | $ 2,477 | $ 3,065 | $ 10,227 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||||
(Benefit) provision for income taxes | $ (3,218) | $ 1,683 | $ (1,303) | $ 897 | |
Effective Income Tax Rate, Continuing Operations | 33.00% | 17.00% | 19.00% | 4.00% | |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | 35.00% |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||
Net (loss) income attributable to Titan | $ (6,424) | $ 8,436 | $ (4,446) | $ 26,083 | ||
Redemption value adjustment | (661) | $ (776) | (4,678) | $ (2,343) | (1,437) | (7,021) |
Net income (loss) applicable to common shareholders | $ (7,085) | $ 3,758 | $ (5,883) | $ 19,062 | ||
Weighted Average Number of Shares Outstanding, Basic | 60,000,000 | 59,750,000 | 59,973,000 | 59,731,000 | ||
Effect of equity awards/trusts | 0 | 128,000 | 0 | 146,000 | ||
Weighted average shares outstanding (diluted) | 60,000,000 | 59,878,000 | 59,973,000 | 59,877,000 | ||
Earnings Per Share, Basic and Diluted | $ (0.12) | $ 0.06 | $ (0.10) | $ 0.32 | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 445 | 331 |
LITIGATION (Details)
LITIGATION (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Loss Contingencies [Line Items] | |
Accrual for Environmental Loss Contingencies, Revision in Estimates | $ 1,050 |
Accrual for Environmental Loss Contingencies | 6,500 |
Legal Appeal Bond | 6,000 |
Judicial Ruling [Member] | |
Loss Contingencies [Line Items] | |
Loss Contingency Accrual | 1,620 |
Unfavorable Regulatory Action [Member] | |
Loss Contingencies [Line Items] | |
Accrual for Environmental Loss Contingencies, Revision in Estimates | $ 5,450 |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 390,597 | $ 428,904 | $ 800,971 | $ 854,286 | |
Gross profit (loss) | 38,308 | 58,312 | 83,572 | 117,873 | |
Income (loss) from operations | (2,430) | 18,964 | 1,706 | 38,346 | |
Interest expense | (8,295) | (7,672) | (16,228) | (15,190) | |
Foreign Currency Transaction Gain (Loss), before Tax | (1,239) | (3,610) | 4,484 | (8,042) | |
Other income, net | 2,069 | 2,477 | 3,065 | 10,227 | |
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | (9,895) | 10,159 | (6,973) | 25,341 | |
Assets | 1,269,528 | 1,269,528 | $ 1,251,256 | ||
Operating Segments [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | 390,597 | 428,904 | 800,971 | 854,286 | |
Gross profit (loss) | 38,308 | 58,312 | 83,572 | 117,873 | |
Income (loss) from operations | (2,430) | 18,964 | 1,706 | 38,346 | |
Operating Segments [Member] | Agricultural [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | 164,284 | 186,870 | 356,014 | 381,037 | |
Gross profit (loss) | 14,247 | 27,270 | 36,372 | 57,231 | |
Income (loss) from operations | 4,365 | 19,002 | 18,293 | 40,323 | |
Assets | 443,628 | 443,628 | 464,828 | ||
Operating Segments [Member] | Earthmoving/construction [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | 184,782 | 198,963 | 361,527 | 387,696 | |
Gross profit (loss) | 19,701 | 24,260 | 37,871 | 46,722 | |
Income (loss) from operations | 5,697 | 11,575 | 11,225 | 21,528 | |
Assets | 605,586 | 605,586 | 543,927 | ||
Operating Segments [Member] | Consumer [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | 41,531 | 43,071 | 83,430 | 85,553 | |
Gross profit (loss) | 4,360 | 6,782 | 9,329 | 13,920 | |
Income (loss) from operations | 1,228 | 3,651 | 3,349 | 7,598 | |
Assets | 119,600 | 119,600 | 129,994 | ||
Operating Segments [Member] | Unallocated Amount to Segment [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Income (loss) from operations | (13,720) | $ (15,264) | (31,161) | $ (31,103) | |
Assets | $ 100,714 | $ 100,714 | $ 112,507 |
SEGMENT INFORMATION ASSETS (Det
SEGMENT INFORMATION ASSETS (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Segment Reporting Information [Line Items] | ||
Assets | $ 1,269,528 | $ 1,251,256 |
Operating Segments [Member] | Agricultural [Member] | ||
Segment Reporting Information [Line Items] | ||
Assets | 443,628 | 464,828 |
Operating Segments [Member] | Earthmoving/construction [Member] | ||
Segment Reporting Information [Line Items] | ||
Assets | 605,586 | 543,927 |
Operating Segments [Member] | Consumer [Member] | ||
Segment Reporting Information [Line Items] | ||
Assets | 119,600 | 129,994 |
Operating Segments [Member] | Unallocated Amount to Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Assets | $ 100,714 | $ 112,507 |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative Asset | $ 0 | $ 902 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative Asset | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative Asset | 0 | 902 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative Asset | $ 0 | $ 0 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - USD ($) $ in Thousands | Jul. 31, 2019 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 |
Related Party Transaction [Line Items] | ||||||
Related Party Transaction, Revenues from Transactions with Related Party | $ 200 | $ 300 | $ 500 | $ 600 | ||
Related Party Transaction, Due from (to) Related Party | 100 | 100 | $ 200 | |||
Related Party Transaction, Expenses from Transactions with Related Party | $ 300 | $ 500 | $ 800 | 1,000 | ||
Equity Method Investment, Ownership Percentage | 21.40% | 21.40% | ||||
Payment of interest on redeemable noncontrolling interest | $ (16,000) | 0 | ||||
Payment related to redeemable noncontrolling interest agreement | $ 41,000 | $ 41,000 | $ 0 | |||
Subsequent Event [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Equity Method Investment, Ownership Percentage | 64.30% | |||||
Payment related to redeemable noncontrolling interest agreement | $ 30,700 | |||||
Subsequent Event [Member] | RDIF [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Equity Method Investment, Ownership Percentage | 35.70% |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | |
Stockholders' Equity Note [Abstract] | ||||
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax | $ (176,290) | $ (176,290) | $ (181,075) | $ (175,794) |
Currency translation adjustments | 4,785 | (496) | ||
Accumulated Other Comprehensive (Income) Loss, Defined Benefit Plan, after Tax | (31,706) | (31,706) | (32,244) | (27,777) |
Amortization of unrecognized losses and prior service cost, net of tax of $4 | 538 | 1,004 | ||
Reclassification from AOCI to retained earnings-Adoption of ASU 2018-02 | (4,933) | |||
Accumulated other comprehensive loss | $ (207,996) | $ (207,996) | $ (213,319) | $ (203,571) |
SUBSIDIARY GUARANTOR FINANCIA_3
SUBSIDIARY GUARANTOR FINANCIAL INFORMATION (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||||||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Dec. 31, 2016 | |
Income Statement [Abstract] | ||||||||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 390,597 | $ 428,904 | $ 800,971 | $ 854,286 | ||||||
Cost of sales | 352,289 | 370,592 | 717,399 | 736,413 | ||||||
Gross profit (loss) | 38,308 | 58,312 | 83,572 | 117,873 | ||||||
Selling, General and Administrative Expense | 35,746 | 33,960 | 71,651 | 68,599 | ||||||
Research and Development Expense | 2,544 | 2,754 | 5,161 | 5,631 | ||||||
Royalty expense | 2,448 | 2,634 | 5,054 | 5,297 | ||||||
Income (loss) from operations | (2,430) | 18,964 | 1,706 | 38,346 | ||||||
Interest expense | (8,295) | (7,672) | (16,228) | (15,190) | ||||||
Intercompany Interest Expense Income | 0 | 0 | 0 | 0 | ||||||
Foreign Currency Transaction Gain (Loss), before Tax | (1,239) | (3,610) | 4,484 | (8,042) | ||||||
Other income (expense) | (2,069) | (2,477) | (3,065) | (10,227) | ||||||
(Loss) income before income taxes | (9,895) | 10,159 | (6,973) | 25,341 | ||||||
(Benefit) provision for income taxes | (3,218) | 1,683 | (1,303) | 897 | ||||||
Equity in Net Earnings (Loss) of Subsidiaries | 0 | 0 | 0 | 0 | ||||||
Net income (loss) | (6,677) | 8,476 | (5,670) | 24,444 | ||||||
Net (loss) income attributable to noncontrolling interests | (253) | 40 | (1,224) | (1,639) | ||||||
Net income (loss) attributable to Titan | (6,424) | 8,436 | (4,446) | 26,083 | ||||||
Comprehensive Income Statement [Abstract] | ||||||||||
Net income (loss) | (6,677) | 8,476 | (5,670) | 24,444 | ||||||
Currency translation adjustment | 5,423 | (38,338) | 1,044 | (30,276) | ||||||
Pension liability adjustments, net of tax | 538 | $ 466 | 690 | $ 883 | 1,004 | 1,573 | ||||
Comprehensive income (loss) | (716) | (29,172) | (3,622) | (4,259) | ||||||
Net comprehensive income (loss) attributable to redeemable and noncontrolling interests | 385 | (2,185) | 317 | (3,225) | ||||||
Comprehensive income (loss) attributable to Titan | (1,101) | (26,987) | (3,939) | (1,034) | ||||||
Statement of Financial Position [Abstract] | ||||||||||
Cash and cash equivalents | 66,366 | 106,491 | 66,366 | 106,491 | $ 81,685 | $ 143,570 | $ 106,491 | $ 143,570 | ||
Accounts Receivable, Net, Current | 272,006 | 272,006 | 241,832 | |||||||
Inventory, Net | 385,368 | 385,368 | 395,735 | |||||||
Prepaid Expense and Other Assets, Current | 62,473 | 62,473 | 60,229 | |||||||
Total current assets | 786,213 | 786,213 | 779,481 | |||||||
Property, Plant and Equipment, Net | 375,997 | 375,997 | 384,872 | |||||||
Equity Method Investments | 0 | 0 | 0 | |||||||
Other Assets, Noncurrent | 107,318 | 107,318 | 86,903 | |||||||
Total assets | 1,269,528 | 1,269,528 | 1,251,256 | |||||||
Short-term debt | 71,366 | 71,366 | 51,885 | |||||||
Accounts payable | 209,422 | 209,422 | 212,129 | |||||||
Other current liabilities | 111,834 | 111,834 | 111,054 | |||||||
Total current liabilities | 392,622 | 392,622 | 375,068 | |||||||
Long-term debt | 445,388 | 445,388 | 409,572 | |||||||
Liabilities, Other than Long-term Debt, Noncurrent | 87,910 | 87,910 | 76,706 | |||||||
Intercompany Accounts, Net | 0 | 0 | 0 | |||||||
Redeemable noncontrolling interest | 55,517 | 55,517 | 119,813 | 117,546 | 113,193 | |||||
Stockholders' Equity Attributable to Parent | 282,934 | 282,934 | 279,048 | |||||||
Stockholders' Equity Attributable to Noncontrolling Interest | 5,157 | 5,157 | (8,951) | |||||||
Total liabilities and equity | 1,269,528 | 1,269,528 | 1,251,256 | |||||||
Statement of Cash Flows [Abstract] | ||||||||||
Net cash provided by (used for) operating activities | (10,001) | (29,927) | ||||||||
Capital expenditures | (16,725) | (18,416) | ||||||||
Payment related to redeemable noncontrolling interest agreement | (41,000) | (41,000) | 0 | |||||||
Payments for (Proceeds from) Other Investing Activities | 1,235 | 884 | ||||||||
Net cash provided by (used for) investing activities | (56,490) | (17,532) | ||||||||
Proceeds from borrowings | 92,723 | 40,078 | ||||||||
Repayments of Other Debt | (42,083) | (24,527) | ||||||||
Payments of Dividends, Common Stock | (599) | (598) | ||||||||
Net cash provided by (used for) financing activities | 50,041 | 14,953 | ||||||||
Effect of Exchange Rate on Cash and Cash Equivalents | 1,131 | (4,573) | ||||||||
Cash and Cash Equivalents, Period Increase (Decrease) | (15,319) | (37,079) | ||||||||
Cash and cash equivalents | 66,366 | 106,491 | 66,366 | 106,491 | 81,685 | 143,570 | $ 106,491 | $ 143,570 | ||
Parent Company [Member] | ||||||||||
Income Statement [Abstract] | ||||||||||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 | 0 | 0 | ||||||
Cost of sales | (11) | 138 | 141 | 246 | ||||||
Gross profit (loss) | 11 | (138) | (141) | (246) | ||||||
Selling, General and Administrative Expense | 2,030 | 1,678 | 3,181 | 2,873 | ||||||
Research and Development Expense | 228 | 253 | 492 | 493 | ||||||
Royalty expense | 401 | 628 | 1,064 | 881 | ||||||
Income (loss) from operations | (2,648) | (2,697) | (4,878) | (4,493) | ||||||
Interest expense | (7,243) | (6,826) | (14,170) | (13,639) | ||||||
Intercompany Interest Expense Income | 644 | 628 | 1,274 | 1,251 | ||||||
Foreign Currency Transaction Gain (Loss), before Tax | 16 | 0 | (22) | 0 | ||||||
Other income (expense) | (612) | (959) | (943) | (6,628) | ||||||
(Loss) income before income taxes | (8,619) | (7,936) | (16,853) | (10,253) | ||||||
(Benefit) provision for income taxes | (7,676) | (2,390) | (7,026) | (12,456) | ||||||
Equity in Net Earnings (Loss) of Subsidiaries | (5,734) | 14,022 | 4,157 | 22,241 | ||||||
Net income (loss) | (6,677) | 8,476 | (5,670) | 24,444 | ||||||
Net (loss) income attributable to noncontrolling interests | 0 | 0 | 0 | 0 | ||||||
Net income (loss) attributable to Titan | (6,677) | 8,476 | (5,670) | 24,444 | ||||||
Comprehensive Income Statement [Abstract] | ||||||||||
Net income (loss) | (6,677) | 8,476 | (5,670) | 24,444 | ||||||
Currency translation adjustment | 5,423 | (38,338) | 1,044 | (30,276) | ||||||
Pension liability adjustments, net of tax | 538 | 690 | 1,004 | 1,573 | ||||||
Comprehensive income (loss) | (716) | (29,172) | (3,622) | (4,259) | ||||||
Net comprehensive income (loss) attributable to redeemable and noncontrolling interests | 0 | 0 | 0 | 0 | ||||||
Comprehensive income (loss) attributable to Titan | (716) | (29,172) | (3,622) | (4,259) | ||||||
Statement of Financial Position [Abstract] | ||||||||||
Cash and cash equivalents | 6,352 | 34,694 | 6,352 | 34,694 | 23,630 | 59,740 | ||||
Accounts Receivable, Net, Current | 0 | 0 | 0 | |||||||
Inventory, Net | 0 | 0 | 0 | |||||||
Prepaid Expense and Other Assets, Current | 2,996 | 2,996 | 3,853 | |||||||
Total current assets | 9,348 | 9,348 | 27,483 | |||||||
Property, Plant and Equipment, Net | 11,311 | 11,311 | 12,493 | |||||||
Equity Method Investments | 750,874 | 750,874 | 749,645 | |||||||
Other Assets, Noncurrent | 2,721 | 2,721 | 6,268 | |||||||
Total assets | 774,254 | 774,254 | 795,889 | |||||||
Short-term debt | 456 | 456 | 419 | |||||||
Accounts payable | 4,532 | 4,532 | 1,447 | |||||||
Other current liabilities | 16,345 | 16,345 | 22,065 | |||||||
Total current liabilities | 21,333 | 21,333 | 23,931 | |||||||
Long-term debt | 437,903 | 437,903 | 396,700 | |||||||
Liabilities, Other than Long-term Debt, Noncurrent | 5,123 | 5,123 | 9,268 | |||||||
Intercompany Accounts, Net | 17,379 | 17,379 | 77,363 | |||||||
Redeemable noncontrolling interest | 0 | 0 | 0 | |||||||
Stockholders' Equity Attributable to Parent | 292,516 | 292,516 | 288,627 | |||||||
Stockholders' Equity Attributable to Noncontrolling Interest | 0 | 0 | 0 | |||||||
Total liabilities and equity | 774,254 | 774,254 | 795,889 | |||||||
Statement of Cash Flows [Abstract] | ||||||||||
Net cash provided by (used for) operating activities | (16,658) | (24,585) | ||||||||
Capital expenditures | (21) | (83) | ||||||||
Payment related to redeemable noncontrolling interest agreement | (41,000) | |||||||||
Payments for (Proceeds from) Other Investing Activities | 0 | 220 | ||||||||
Net cash provided by (used for) investing activities | (41,021) | 137 | ||||||||
Proceeds from borrowings | (50,000) | 0 | ||||||||
Repayments of Other Debt | (9,000) | 0 | ||||||||
Payments of Dividends, Common Stock | (599) | (598) | ||||||||
Net cash provided by (used for) financing activities | 40,401 | (598) | ||||||||
Effect of Exchange Rate on Cash and Cash Equivalents | 0 | 0 | ||||||||
Cash and Cash Equivalents, Period Increase (Decrease) | (17,278) | (25,046) | ||||||||
Cash and cash equivalents | 6,352 | 34,694 | 6,352 | 34,694 | 23,630 | 59,740 | ||||
Guarantor Subsidiaries [Member] | ||||||||||
Income Statement [Abstract] | ||||||||||
Revenue from Contract with Customer, Excluding Assessed Tax | 111,162 | 166,757 | 235,943 | 337,517 | ||||||
Cost of sales | 99,275 | 140,208 | 205,791 | 281,738 | ||||||
Gross profit (loss) | 11,887 | 26,549 | 30,152 | 55,779 | ||||||
Selling, General and Administrative Expense | 11,596 | 16,985 | 23,204 | 32,260 | ||||||
Research and Development Expense | 756 | 983 | 1,585 | 1,969 | ||||||
Royalty expense | 1,073 | 940 | 2,145 | 2,453 | ||||||
Income (loss) from operations | (1,538) | 7,641 | 3,218 | 19,097 | ||||||
Interest expense | 0 | 0 | 0 | 0 | ||||||
Intercompany Interest Expense Income | 880 | 909 | 1,890 | 1,922 | ||||||
Foreign Currency Transaction Gain (Loss), before Tax | 55 | (662) | (4) | (670) | ||||||
Other income (expense) | 798 | 147 | 1,077 | 313 | ||||||
(Loss) income before income taxes | (1,401) | 7,741 | 4,027 | 20,036 | ||||||
(Benefit) provision for income taxes | 132 | 3,044 | 283 | 7,304 | ||||||
Equity in Net Earnings (Loss) of Subsidiaries | 0 | 0 | 0 | 0 | ||||||
Net income (loss) | (1,533) | 4,697 | 3,744 | 12,732 | ||||||
Net (loss) income attributable to noncontrolling interests | 0 | 0 | 0 | 0 | ||||||
Net income (loss) attributable to Titan | (1,533) | 4,697 | 3,744 | 12,732 | ||||||
Comprehensive Income Statement [Abstract] | ||||||||||
Net income (loss) | (1,533) | 4,697 | 3,744 | 12,732 | ||||||
Currency translation adjustment | 0 | 0 | 0 | 0 | ||||||
Pension liability adjustments, net of tax | 753 | 646 | 1,506 | 1,292 | ||||||
Comprehensive income (loss) | (780) | 5,343 | 5,250 | 14,024 | ||||||
Net comprehensive income (loss) attributable to redeemable and noncontrolling interests | 0 | 0 | 0 | 0 | ||||||
Comprehensive income (loss) attributable to Titan | (780) | 5,343 | 5,250 | 14,024 | ||||||
Statement of Financial Position [Abstract] | ||||||||||
Cash and cash equivalents | 3 | 5 | 3 | 5 | 4 | 13 | ||||
Accounts Receivable, Net, Current | 73 | 73 | 0 | |||||||
Inventory, Net | 55,796 | 55,796 | 68,858 | |||||||
Prepaid Expense and Other Assets, Current | 17,740 | 17,740 | 18,845 | |||||||
Total current assets | 73,612 | 73,612 | 87,707 | |||||||
Property, Plant and Equipment, Net | 94,374 | 94,374 | 98,856 | |||||||
Equity Method Investments | 0 | 0 | 0 | |||||||
Other Assets, Noncurrent | 4,970 | 4,970 | 944 | |||||||
Total assets | 172,956 | 172,956 | 187,507 | |||||||
Short-term debt | 0 | 0 | 0 | |||||||
Accounts payable | 27,947 | 27,947 | 29,922 | |||||||
Other current liabilities | 21,026 | 21,026 | 20,051 | |||||||
Total current liabilities | 48,973 | 48,973 | 49,973 | |||||||
Long-term debt | 0 | 0 | 0 | |||||||
Liabilities, Other than Long-term Debt, Noncurrent | 19,597 | 19,597 | 17,521 | |||||||
Intercompany Accounts, Net | (407,724) | (407,724) | (390,382) | |||||||
Redeemable noncontrolling interest | 0 | 0 | 0 | |||||||
Stockholders' Equity Attributable to Parent | 512,110 | 512,110 | 510,395 | |||||||
Stockholders' Equity Attributable to Noncontrolling Interest | 0 | 0 | 0 | |||||||
Total liabilities and equity | 172,956 | 172,956 | 187,507 | |||||||
Statement of Cash Flows [Abstract] | ||||||||||
Net cash provided by (used for) operating activities | 4,213 | 3,265 | ||||||||
Capital expenditures | (4,396) | (3,274) | ||||||||
Payment related to redeemable noncontrolling interest agreement | 0 | |||||||||
Payments for (Proceeds from) Other Investing Activities | 182 | 1 | ||||||||
Net cash provided by (used for) investing activities | (4,214) | (3,273) | ||||||||
Proceeds from borrowings | 0 | 0 | ||||||||
Repayments of Other Debt | 0 | 0 | ||||||||
Payments of Dividends, Common Stock | 0 | 0 | ||||||||
Net cash provided by (used for) financing activities | 0 | 0 | ||||||||
Effect of Exchange Rate on Cash and Cash Equivalents | 0 | 0 | ||||||||
Cash and Cash Equivalents, Period Increase (Decrease) | (1) | (8) | ||||||||
Cash and cash equivalents | 3 | 5 | 3 | 5 | 4 | 13 | ||||
Non-Guarantor Subsidiaries [Member] | ||||||||||
Income Statement [Abstract] | ||||||||||
Revenue from Contract with Customer, Excluding Assessed Tax | 391,301 | 262,147 | 801,576 | 516,769 | ||||||
Cost of sales | 364,891 | 230,246 | 748,015 | 454,429 | ||||||
Gross profit (loss) | 26,410 | 31,901 | 53,561 | 62,340 | ||||||
Selling, General and Administrative Expense | 22,120 | 15,297 | 45,266 | 33,466 | ||||||
Research and Development Expense | 1,560 | 1,518 | 3,084 | 3,169 | ||||||
Royalty expense | 974 | 1,066 | 1,845 | 1,963 | ||||||
Income (loss) from operations | 1,756 | 14,020 | 3,366 | 23,742 | ||||||
Interest expense | (1,052) | (846) | (2,058) | (1,551) | ||||||
Intercompany Interest Expense Income | (1,524) | (1,537) | (3,164) | (3,173) | ||||||
Foreign Currency Transaction Gain (Loss), before Tax | (1,310) | (2,948) | 4,510 | (7,372) | ||||||
Other income (expense) | (2,255) | (1,665) | (3,199) | (3,912) | ||||||
(Loss) income before income taxes | 125 | 10,354 | 5,853 | 15,558 | ||||||
(Benefit) provision for income taxes | 4,326 | 1,029 | 5,440 | 6,049 | ||||||
Equity in Net Earnings (Loss) of Subsidiaries | (205) | 209 | 531 | 4,546 | ||||||
Net income (loss) | (4,406) | 9,534 | 944 | 14,055 | ||||||
Net (loss) income attributable to noncontrolling interests | (253) | 40 | (1,224) | (1,639) | ||||||
Net income (loss) attributable to Titan | (4,153) | 9,494 | 2,168 | 15,694 | ||||||
Comprehensive Income Statement [Abstract] | ||||||||||
Net income (loss) | (4,406) | 9,534 | 944 | 14,055 | ||||||
Currency translation adjustment | 5,423 | (38,338) | 1,044 | (30,276) | ||||||
Pension liability adjustments, net of tax | (215) | 44 | (502) | 281 | ||||||
Comprehensive income (loss) | 802 | (28,760) | 1,486 | (15,940) | ||||||
Net comprehensive income (loss) attributable to redeemable and noncontrolling interests | 385 | (2,185) | 317 | (3,225) | ||||||
Comprehensive income (loss) attributable to Titan | 417 | (26,575) | 1,169 | (12,715) | ||||||
Statement of Financial Position [Abstract] | ||||||||||
Cash and cash equivalents | 60,011 | 71,792 | 60,011 | 71,792 | 58,051 | 83,817 | ||||
Accounts Receivable, Net, Current | 271,933 | 271,933 | 241,832 | |||||||
Inventory, Net | 329,572 | 329,572 | 326,877 | |||||||
Prepaid Expense and Other Assets, Current | 41,737 | 41,737 | 37,531 | |||||||
Total current assets | 703,253 | 703,253 | 664,291 | |||||||
Property, Plant and Equipment, Net | 270,312 | 270,312 | 273,523 | |||||||
Equity Method Investments | 65,574 | 65,574 | 66,308 | |||||||
Other Assets, Noncurrent | 99,627 | 99,627 | 79,691 | |||||||
Total assets | 1,138,766 | 1,138,766 | 1,083,813 | |||||||
Short-term debt | 70,910 | 70,910 | 51,466 | |||||||
Accounts payable | 176,943 | 176,943 | 180,760 | |||||||
Other current liabilities | 74,463 | 74,463 | 68,938 | |||||||
Total current liabilities | 322,316 | 322,316 | 301,164 | |||||||
Long-term debt | 7,485 | 7,485 | 12,872 | |||||||
Liabilities, Other than Long-term Debt, Noncurrent | 63,190 | 63,190 | 49,917 | |||||||
Intercompany Accounts, Net | 390,345 | 390,345 | 313,019 | |||||||
Redeemable noncontrolling interest | 55,517 | 55,517 | 119,813 | |||||||
Stockholders' Equity Attributable to Parent | 294,756 | 294,756 | 295,979 | |||||||
Stockholders' Equity Attributable to Noncontrolling Interest | 5,157 | 5,157 | (8,951) | |||||||
Total liabilities and equity | 1,138,766 | 1,138,766 | 1,083,813 | |||||||
Statement of Cash Flows [Abstract] | ||||||||||
Net cash provided by (used for) operating activities | 2,444 | (8,607) | ||||||||
Capital expenditures | (12,308) | (15,059) | ||||||||
Payment related to redeemable noncontrolling interest agreement | 0 | |||||||||
Payments for (Proceeds from) Other Investing Activities | 1,053 | 663 | ||||||||
Net cash provided by (used for) investing activities | (11,255) | (14,396) | ||||||||
Proceeds from borrowings | 42,723 | 40,078 | ||||||||
Repayments of Other Debt | (33,083) | (24,527) | ||||||||
Payments of Dividends, Common Stock | 0 | 0 | ||||||||
Net cash provided by (used for) financing activities | 9,640 | 15,551 | ||||||||
Effect of Exchange Rate on Cash and Cash Equivalents | 1,131 | (4,573) | ||||||||
Cash and Cash Equivalents, Period Increase (Decrease) | 1,960 | (12,025) | ||||||||
Cash and cash equivalents | 60,011 | 71,792 | 60,011 | 71,792 | 58,051 | $ 83,817 | ||||
Consolidation, Eliminations [Member] | ||||||||||
Income Statement [Abstract] | ||||||||||
Revenue from Contract with Customer, Excluding Assessed Tax | (111,866) | 0 | (236,548) | 0 | ||||||
Cost of sales | (111,866) | 0 | (236,548) | 0 | ||||||
Gross profit (loss) | 0 | 0 | 0 | 0 | ||||||
Selling, General and Administrative Expense | 0 | 0 | 0 | 0 | ||||||
Research and Development Expense | 0 | 0 | 0 | 0 | ||||||
Royalty expense | 0 | 0 | 0 | 0 | ||||||
Income (loss) from operations | 0 | 0 | 0 | 0 | ||||||
Interest expense | 0 | 0 | 0 | 0 | ||||||
Intercompany Interest Expense Income | 0 | 0 | 0 | 0 | ||||||
Foreign Currency Transaction Gain (Loss), before Tax | 0 | 0 | 0 | 0 | ||||||
Other income (expense) | 0 | 0 | 0 | 0 | ||||||
(Loss) income before income taxes | 0 | 0 | 0 | 0 | ||||||
(Benefit) provision for income taxes | 0 | 0 | 0 | 0 | ||||||
Equity in Net Earnings (Loss) of Subsidiaries | 5,939 | (14,231) | (4,688) | (26,787) | ||||||
Net income (loss) | 5,939 | (14,231) | (4,688) | (26,787) | ||||||
Net (loss) income attributable to noncontrolling interests | 0 | 0 | 0 | 0 | ||||||
Net income (loss) attributable to Titan | 5,939 | (14,231) | (4,688) | (26,787) | ||||||
Comprehensive Income Statement [Abstract] | ||||||||||
Net income (loss) | 5,939 | (14,231) | (4,688) | (26,787) | ||||||
Currency translation adjustment | (5,423) | 38,338 | (1,044) | 30,276 | ||||||
Pension liability adjustments, net of tax | (538) | (690) | (1,004) | (1,573) | ||||||
Comprehensive income (loss) | (22) | 23,417 | (6,736) | 1,916 | ||||||
Net comprehensive income (loss) attributable to redeemable and noncontrolling interests | 0 | 0 | 0 | 0 | ||||||
Comprehensive income (loss) attributable to Titan | (22) | $ 23,417 | (6,736) | $ 1,916 | ||||||
Statement of Financial Position [Abstract] | ||||||||||
Cash and cash equivalents | 0 | 0 | 0 | |||||||
Accounts Receivable, Net, Current | 0 | 0 | 0 | |||||||
Inventory, Net | 0 | 0 | 0 | |||||||
Prepaid Expense and Other Assets, Current | 0 | 0 | 0 | |||||||
Total current assets | 0 | 0 | 0 | |||||||
Property, Plant and Equipment, Net | 0 | 0 | 0 | |||||||
Equity Method Investments | (816,448) | (816,448) | (815,953) | |||||||
Other Assets, Noncurrent | 0 | 0 | 0 | |||||||
Total assets | (816,448) | (816,448) | (815,953) | |||||||
Short-term debt | 0 | 0 | 0 | |||||||
Accounts payable | 0 | 0 | 0 | |||||||
Other current liabilities | 0 | 0 | 0 | |||||||
Total current liabilities | 0 | 0 | 0 | |||||||
Long-term debt | 0 | 0 | 0 | |||||||
Liabilities, Other than Long-term Debt, Noncurrent | 0 | 0 | 0 | |||||||
Intercompany Accounts, Net | 0 | 0 | 0 | |||||||
Redeemable noncontrolling interest | 0 | 0 | 0 | |||||||
Stockholders' Equity Attributable to Parent | (816,448) | (816,448) | (815,953) | |||||||
Stockholders' Equity Attributable to Noncontrolling Interest | 0 | 0 | 0 | |||||||
Total liabilities and equity | (816,448) | (816,448) | (815,953) | |||||||
Statement of Cash Flows [Abstract] | ||||||||||
Cash and cash equivalents | $ 0 | $ 0 | $ 0 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - USD ($) $ in Thousands | Jul. 31, 2019 | Jun. 30, 2019 | Jun. 30, 2019 | Jun. 30, 2018 |
Subsequent Event [Line Items] | ||||
Payment of interest on redeemable noncontrolling interest | $ 16,000 | $ 0 | ||
Payment related to redeemable noncontrolling interest agreement | $ 41,000 | $ 41,000 | $ 0 | |
Equity Method Investment, Ownership Percentage | 21.40% | 21.40% | ||
Subsequent Event [Member] | ||||
Subsequent Event [Line Items] | ||||
Payment related to redeemable noncontrolling interest agreement | $ 30,700 | |||
Equity Method Investment, Ownership Percentage | 64.30% | |||
RDIF [Member] | Subsequent Event [Member] | ||||
Subsequent Event [Line Items] | ||||
Equity Method Investment, Ownership Percentage | 35.70% |