Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Feb. 16, 2018 | Jun. 30, 2017 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | STANDARD MOTOR PRODUCTS INC | ||
Entity Central Index Key | 93,389 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $ 1,064,087,671 | ||
Entity Common Stock, Shares Outstanding | 22,477,480 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2017 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
CONSOLIDATED STATEMENTS OF OPERATIONS [Abstract] | ||||
Net sales | [1] | $ 1,116,143 | $ 1,058,482 | $ 971,975 |
Cost of sales | 789,487 | 735,995 | 690,987 | |
Gross profit | 326,656 | 322,487 | 280,988 | |
Selling, general and administrative expenses | 223,584 | 221,658 | 206,287 | |
Restructuring and integration expense (income) | 6,173 | 3,957 | (134) | |
Other income, net | 1,275 | 1,195 | 1,025 | |
Operating income | 98,174 | 98,067 | 75,860 | |
Other non-operating income (expense), net | 597 | 2,059 | (220) | |
Interest expense | 2,329 | 1,556 | 1,537 | |
Earnings from continuing operations before taxes | 96,442 | 98,570 | 74,103 | |
Provision for income taxes | 52,812 | 36,158 | 25,983 | |
Earnings from continuing operations | 43,630 | 62,412 | 48,120 | |
Loss from discontinued operations, net of income tax benefit of $3,769, $1,322 and $1,401 | (5,654) | (1,982) | (2,102) | |
Net earnings | $ 37,976 | $ 60,430 | $ 46,018 | |
Net earnings per common share - Basic: | ||||
Earnings from continuing operations (in dollars per share) | $ 1.92 | $ 2.75 | $ 2.11 | |
Discontinued operations (in dollars per share) | (0.25) | (0.09) | (0.09) | |
Net earnings per common share - Basic (in dollars per share) | 1.67 | 2.66 | 2.02 | |
Net earnings per common share - Diluted: | ||||
Earnings from continuing operations (in dollars per share) | 1.88 | 2.70 | 2.08 | |
Discontinued operations (in dollars per share) | (0.24) | (0.08) | (0.09) | |
Net earnings per common share - Diluted (in dollars per share) | 1.64 | 2.62 | 1.99 | |
Dividend declared per share (in dollars per share) | $ 0.76 | $ 0.68 | $ 0.60 | |
Average number of common shares (in shares) | 22,726,491 | 22,722,517 | 22,811,862 | |
Average number of common shares and dilutive common shares (in shares) | 23,198,392 | 23,082,578 | 23,142,394 | |
[1] | Segment and product line net sales include intersegment sales in our Engine Management and Temperature Control segments. |
CONSOLIDATED STATEMENTS OF OPE3
CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
CONSOLIDATED STATEMENTS OF OPERATIONS [Abstract] | |||
Income tax benefit | $ 3,769 | $ 1,322 | $ 1,401 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME [Abstract] | |||
Net earnings | $ 37,976 | $ 60,430 | $ 46,018 |
Other comprehensive income (loss), net of tax: | |||
Foreign currency translation adjustments | 7,027 | (5,294) | (5,739) |
Amortization of: | |||
Prior service benefit | 0 | (54) | (112) |
Unrecognized (gain) loss | (661) | 763 | 2,261 |
Unrecognized actuarial gains | 481 | 542 | 462 |
Plan settlement | 0 | 0 | 654 |
Foreign currency exchange rate changes | 0 | 3 | (23) |
Income tax related to pension and postretirement plans | 72 | (514) | (1,325) |
Pension and post retirement plans, net of tax | (108) | 740 | 1,917 |
Total other comprehensive income (loss), net of tax | 6,919 | (4,554) | (3,822) |
Comprehensive income | $ 44,895 | $ 55,876 | $ 42,196 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 17,323 | $ 19,796 |
Accounts receivable, less allowances for discounts and doubtful accounts of $4,967 and $4,425 in 2017 and 2016, respectively | 140,057 | 134,630 |
Inventories | 326,411 | 312,477 |
Prepaid expenses and other current assets | 12,300 | 7,318 |
Total current assets | 496,091 | 474,221 |
Property, plant and equipment, net | 89,103 | 78,499 |
Goodwill | 67,413 | 67,231 |
Other intangibles, net | 56,261 | 64,056 |
Deferred incomes taxes | 32,420 | 51,127 |
Other assets | 46,279 | 33,563 |
Total assets | 787,567 | 768,697 |
CURRENT LIABILITIES: | ||
Notes payable | 57,000 | 54,812 |
Current portion of other debt | 4,699 | 43 |
Accounts payable | 77,990 | 83,878 |
Sundry payables and accrued expenses | 51,911 | 45,147 |
Accrued customer returns | 35,916 | 40,176 |
Accrued rebates | 35,346 | 29,127 |
Payroll and commissions | 23,035 | 30,658 |
Total current liabilities | 285,897 | 283,841 |
Long-term debt | 79 | 120 |
Other accrued liabilities | 14,561 | 12,380 |
Accrued asbestos liabilities | 33,376 | 31,328 |
Total liabilities | 333,913 | 327,669 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Common Stock - par value $2.00 per share: Authorized 30,000,000 shares, issued 23,936,036 shares | 47,872 | 47,872 |
Capital in excess of par value | 100,057 | 96,850 |
Retained earnings | 357,153 | 336,464 |
Accumulated other comprehensive income | (4,109) | (11,028) |
Treasury stock - at cost (1,424,025 shares and 1,101,487 shares in 2017 and 2016, respectively) | (47,319) | (29,130) |
Total stockholders' equity | 453,654 | 441,028 |
Total liabilities and stockholders' equity | $ 787,567 | $ 768,697 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
CURRENT ASSETS: | ||
Accounts receivable, allowances for discounts and doubtful accounts | $ 4,967 | $ 4,425 |
Stockholders' equity: | ||
Common stock, par value (in dollars per share) | $ 2 | $ 2 |
Common stock, shares authorized (in shares) | 30,000,000 | 30,000,000 |
Common stock, shares issued (in shares) | 23,936,036 | 23,936,036 |
Treasury stock - at cost (in shares) | 1,424,025 | 1,101,487 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||
Net earnings | $ 37,976 | $ 60,430 | $ 46,018 | |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||||
Depreciation and amortization | 23,916 | 20,457 | 17,637 | |
Amortization of deferred financing cost | 343 | 346 | 635 | |
Increase to allowance for doubtful accounts | 972 | 210 | 3,371 | |
Increase to inventory reserves | 3,300 | 5,371 | 1,864 | |
Amortization of deferred gain on sale of buildings | (1,048) | (1,048) | (1,048) | |
Equity (income) loss from joint ventures | [1] | 602 | (2,029) | (976) |
Employee Stock Ownership Plan allocation | 2,159 | 2,021 | 2,208 | |
Stock-based compensation | 7,638 | 6,127 | 5,379 | |
Excess tax benefits related to exercise of employee stock grants | 0 | (849) | (1,254) | |
(Increase) decrease in deferred income taxes | 19,059 | (691) | (1,494) | |
Increase (decrease) in tax valuation allowance | (128) | 65 | 87 | |
Loss on discontinued operations, net of tax | 5,654 | 1,982 | 2,102 | |
Change in assets and liabilities: | ||||
Increase in accounts receivable | (5,100) | (8,826) | (1,996) | |
Increase in inventories | (13,901) | (20,155) | (12,503) | |
(Increase) decrease in prepaid expenses and other current assets | (4,869) | 3,475 | 367 | |
Increase (decrease) in accounts payable | (7,186) | 7,345 | 1,882 | |
Increase (decrease) in sundry payables and accrued expenses | (6,015) | 20,990 | 1,874 | |
Net changes in other assets and liabilities | 1,245 | 2,584 | 1,018 | |
Net cash provided by operating activities | 64,617 | 97,805 | 65,171 | |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||
Acquisitions of and investments in businesses | (6,808) | (67,289) | 0 | |
Capital expenditures | (24,442) | (20,921) | (18,047) | |
Other investing activities | 22 | 192 | 36 | |
Net cash used in investing activities | (31,228) | (88,018) | (18,011) | |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||
Net borrowings (repayments) under line-of-credit agreements | 2,188 | 7,384 | (9,131) | |
Net borrowings (payments) of other debt and capital lease obligations | 4,065 | 89 | (170) | |
Purchase of treasury stock | (24,376) | (377) | (19,623) | |
Increase (decrease) in overdraft balances | (534) | (254) | 851 | |
Payments of debt issuance costs | 0 | 0 | (748) | |
Proceeds from exercise of employee stock options | 0 | 0 | 109 | |
Excess tax benefits related to the exercise of employee stock grants | 0 | 849 | 1,254 | |
Dividends paid | (17,287) | (15,447) | (13,697) | |
Net cash used in financing activities | (35,944) | (7,756) | (41,155) | |
Effect of exchange rate changes on cash | 82 | (1,035) | (933) | |
Net increase (decrease) in cash and cash equivalents | (2,473) | 996 | 5,072 | |
CASH AND CASH EQUIVALENTS at beginning of year | 19,796 | 18,800 | 13,728 | |
CASH AND CASH EQUIVALENTS at end of year | 17,323 | 19,796 | 18,800 | |
Cash paid during the year for: | ||||
Interest | 1,944 | 1,207 | 901 | |
Income taxes | 34,543 | 32,505 | 27,513 | |
Noncash investing activity: | ||||
Accrual for final contribution of acquired investment | $ 5,740 | $ 0 | $ 0 | |
[1] | Year ended December 31, 2017 includes a noncash impairment charge of approximately $1.8 million related to our minority interest investment in Orange Electronic Co., Ltd. (See Note 8 for additional information). |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock [Member] | Capital In Excess of Par Value [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income [Member] | Treasury Stock [Member] | Total |
Balance at Dec. 31, 2014 | $ 47,872 | $ 91,411 | $ 259,160 | $ (2,652) | $ (21,638) | $ 374,153 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net earnings | 0 | 0 | 46,018 | 0 | 0 | 46,018 |
Other comprehensive income (loss), net of tax | 0 | 0 | 0 | (3,822) | 0 | (3,822) |
Cash dividends paid | 0 | 0 | (13,697) | 0 | 0 | (13,697) |
Purchase of treasury stock | 0 | 0 | 0 | 0 | (19,623) | (19,623) |
Stock-based compensation and related tax benefits | 0 | 833 | 0 | 0 | 5,700 | 6,533 |
Stock options exercised and related tax benefits | 0 | 2 | 0 | 0 | 207 | 209 |
Employee Stock Ownership Plan | 0 | 1,001 | 0 | 0 | 1,207 | 2,208 |
Balance at Dec. 31, 2015 | 47,872 | 93,247 | 291,481 | (6,474) | (34,147) | 391,979 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net earnings | 0 | 0 | 60,430 | 0 | 0 | 60,430 |
Other comprehensive income (loss), net of tax | 0 | 0 | 0 | (4,554) | 0 | (4,554) |
Cash dividends paid | 0 | 0 | (15,447) | 0 | 0 | (15,447) |
Purchase of treasury stock | 0 | 0 | 0 | 0 | (377) | (377) |
Stock-based compensation and related tax benefits | 0 | 3,148 | 0 | 0 | 3,828 | 6,976 |
Employee Stock Ownership Plan | 0 | 455 | 0 | 0 | 1,566 | 2,021 |
Balance at Dec. 31, 2016 | 47,872 | 96,850 | 336,464 | (11,028) | (29,130) | 441,028 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net earnings | 0 | 0 | 37,976 | 0 | 0 | 37,976 |
Other comprehensive income (loss), net of tax | 0 | 0 | 0 | 6,919 | 0 | 6,919 |
Cash dividends paid | 0 | 0 | (17,287) | 0 | 0 | (17,287) |
Purchase of treasury stock | 0 | 0 | 0 | 0 | (24,779) | (24,779) |
Stock-based compensation and related tax benefits | 0 | 2,193 | 0 | 0 | 5,445 | 7,638 |
Employee Stock Ownership Plan | 0 | 1,014 | 0 | 0 | 1,145 | 2,159 |
Balance at Dec. 31, 2017 | $ 47,872 | $ 100,057 | $ 357,153 | $ (4,109) | $ (47,319) | $ 453,654 |
CONSOLIDATED STATEMENTS OF CHA9
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY (Unaudited) [Abstract] | |||
Cash dividends paid (in dollars per share) | $ 0.76 | $ 0.68 | $ 0.60 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Summary of Significant Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 1. Summary of Significant Accounting Policies Principles of Consolidation Standard Motor Products, Inc. and subsidiaries (referred to hereinafter in these notes to the consolidated financial statements as “we,” “us,” “our” or the “Company”) is engaged in the manufacture and distribution of replacement parts for motor vehicles in the automotive aftermarket industry with a complementary focus on heavy duty, industrial equipment and the original equipment service market. The consolidated financial statements include our accounts and all domestic and international companies in which we have more than a 50% equity ownership. Our investments in unconsolidated affiliates are accounted for on the equity method, as we do not have a controlling financial interest but have the ability to exercise significant influence. All significant inter-company items have been eliminated. Use of Estimates In conformity with generally accepted accounting principles, we have made a number of estimates and assumptions relating to the reporting of assets, liabilities, revenues and expenses, and the disclosure of contingent assets and liabilities to prepare these consolidated financial statements. Some of the more significant estimates include allowances for doubtful accounts, cash discounts, valuation of inventory, valuation of long-lived assets, goodwill and other intangible assets, depreciation and amortization of long-lived assets, product liability exposures, other postretirement benefits, asbestos, environmental and litigation matters, valuation of deferred tax assets, share based compensation and sales returns and other allowances. We can give no assurances that actual results will not differ from those estimates. Although we do not believe that there is a reasonable likelihood that there will be a material change in the future estimate or in the assumptions that we use in calculating the estimate, unforeseen changes in the industry, or business could materially impact the estimate and may have a material adverse effect on our business, financial condition and results of operations. Reclassification Certain prior period amounts in the accompanying consolidated financial statements and related notes have been reclassified to conform to the 2017 presentation. Cash and Cash Equivalents We consider all highly liquid investments purchased with a maturity of three months or less to be cash equivalents. Allowance for Doubtful Accounts and Cash Discounts We do not generally require collateral for our trade accounts receivable. Accounts receivable have been reduced by an allowance for amounts that may become uncollectible in the future. These allowances are established based on a combination of write-off history, aging analysis, and specific account evaluations. When a receivable balance is known to be uncollectible, it is written off against the allowance for doubtful accounts. Cash discounts are provided based on an overall average experience rate applied to qualifying accounts receivable balances. Inventories Inventories are valued at the lower of cost and net realizable value. Cost is determined on the first-in first-out basis. Where appropriate, standard cost systems are utilized for purposes of determining cost; the standards are adjusted as necessary to ensure they approximate actual costs. Estimates of lower of cost and net realizable value of inventory are determined by comparing the actual cost of the product to the estimated selling prices in the ordinary course of business less reasonably predictable costs of completion, disposal and transportation of the inventory. We also evaluate inventories on a regular basis to identify inventory on hand that may be obsolete or in excess of current and future projected market demand. For inventory deemed to be obsolete, we provide a reserve on the full value of the inventory. Inventory that is in excess of current and projected use is reduced by an allowance to a level that approximates our estimate of future demand. Future projected demand requires management judgment and is based upon (a) our review of historical trends and (b) our estimate of projected customer specific buying patterns and trends in the industry and markets in which we do business. Using rolling twelve month historical information, we estimate future demand on a continuous basis. As such, the historical volatility of such estimates has been minimal. We maintain provisions for inventory reserves of $41.5 million and $47.9 million as of December 31, 2017 and 2016, respectively. We utilize cores (used parts) in our remanufacturing processes for air conditioning compressors, diesel injectors, and diesel pumps. The production of air conditioning compressors, diesel injectors, and diesel pumps involves the rebuilding of used cores, which we acquire either in outright purchases from used parts brokers, or from returns pursuant to an exchange program with customers. Under such exchange programs, we reduce our inventory, through a charge to cost of sales, when we sell a finished good compressor, diesel injector, or diesel pump and put back to inventory the used core exchanged at standard cost through a credit to cost of sales when it is actually received from the customer. Property, Plant and Equipment These assets are recorded at historical cost and are depreciated using the straight-line method of depreciation over the estimated useful lives as follows: Estimated Life Buildings 25 to 33-1/2 years Building improvements 10 to 25 years Machinery and equipment 5 to 12 years Tools, dies and auxiliary equipment 3 to 8 years Furniture and fixtures 3 to 12 years Leasehold improvements are depreciated over the shorter of the estimated useful life or the term of the lease. Costs related to maintenance and repairs which do not prolong the assets useful lives are expensed as incurred. We assess our property, plant and equipment to be held and used for impairment when indicators are present that the carrying value may not be recoverable. Valuation of Long-Lived and Intangible Assets and Goodwill At acquisition, we estimate and record the fair value of purchased intangible assets, which primarily consists of customer relationships, trademarks and trade names, patents and non-compete agreements. The fair values of these intangible assets are estimated based on our assessment. Goodwill is the excess of the purchase price over the fair value of identifiable net assets acquired in business combinations. Goodwill and certain other intangible assets having indefinite lives are not amortized to earnings, but instead are subject to periodic testing for impairment. Intangible assets determined to have definite lives are amortized over their remaining useful lives. We assess the impairment of long‑lived assets, identifiable intangibles assets and goodwill whenever events or changes in circumstances indicate that the carrying value may not be recoverable. With respect to goodwill and identifiable intangible assets having indefinite lives, we test for impairment on an annual basis or in interim periods if an event occurs or circumstances change that may indicate the fair value is below its carrying amount. Factors we consider important, which could trigger an impairment review, include the following: (a) significant underperformance relative to expected historical or projected future operating results; (b) significant changes in the manner of our use of the acquired assets or the strategy for our overall business; and (c) significant negative industry or economic trends. We review the fair values using the discounted cash flows method and market multiples. When performing our evaluation of goodwill for impairment, if we conclude qualitatively that it is not more likely than not that the fair value of the reporting unit is less than its carrying amount, then the two-step impairment test is not required. If we are unable to reach this conclusion, then we would perform the two-step impairment test. Initially, the fair value of the reporting unit is compared to its carrying amount. To the extent the carrying amount of a reporting unit exceeds the fair value of the reporting unit; we are required to perform a second step, as this is an indication that the reporting unit goodwill may be impaired. In this step, we compare the implied fair value of the reporting unit goodwill with the carrying amount of the reporting unit goodwill and recognize a charge for impairment to the extent the carrying value exceeds the implied fair value. The implied fair value of goodwill is determined by allocating the fair value of the reporting unit to all of the assets (recognized and unrecognized) and liabilities of the reporting unit in a manner similar to a purchase price allocation. The residual fair value after this allocation is the implied fair value of the reporting unit goodwill. In addition, identifiable intangible assets having indefinite lives are reviewed for impairment on an annual basis using a methodology consistent with that used to evaluate goodwill. Intangible assets having definite lives and other long-lived assets are reviewed for impairment whenever events such as product discontinuance, plant closures, product dispositions or other changes in circumstances indicate that the carrying amount may not be recoverable. In reviewing for impairment, we compare the carrying value of such assets to the estimated undiscounted future cash flows expected from the use of the assets and their eventual disposition. When the estimated undiscounted future cash flows are less than their carrying amount, an impairment loss is recognized equal to the difference between the assets fair value and their carrying value. There are inherent assumptions and estimates used in developing future cash flows requiring our judgment in applying these assumptions and estimates to the analysis of identifiable intangibles and long‑lived asset impairment including projecting revenues, interest rates, tax rates and the cost of capital. Many of the factors used in assessing fair value are outside our control and it is reasonably likely that assumptions and estimates will change in future periods. These changes can result in future impairments. In the event our planning assumptions were modified resulting in impairment to our assets, we would be required to include an expense in our statement of operations, which could materially impact our business, financial condition and results of operations. New Customer Acquisition Costs New customer acquisition costs refer to arrangements pursuant to which we incur change-over costs to induce a new customer to switch from a competitor’s brand. In addition, change-over costs include the costs related to removing the new customer’s inventory and replacing it with our inventory commonly referred to as a stocklift. New customer acquisition costs are recorded as a reduction to revenue when incurred. Foreign Currency Translation Assets and liabilities of our foreign operations are translated into U.S. dollars at year-end exchange rates. Income statement accounts are translated using the average exchange rates prevailing during the year. The resulting translation adjustments are recorded as a separate component of accumulated other comprehensive income (loss) and remains there until the underlying foreign operation is liquidated or substantially disposed of. Foreign currency transaction gains or losses are recorded in the statement of operations under the caption “other non-operating income (expense), net.” Revenue Recognition We derive our revenue primarily from sales of replacement parts for motor vehicles from both our Engine Management and Temperature Control Segments. We recognize revenues when products are shipped and title has been transferred to a customer, the sales price is fixed and determinable, and collection is reasonably assured. For certain of our sales of remanufactured products, we also charge our customers a deposit for the return of a used core component which we can use in our future remanufacturing activities. Such deposit is not recognized as revenue but rather carried as a core liability. The liability is extinguished when a core is actually returned to us. We estimate and record provisions for cash discounts, quantity rebates, sales returns and warranties in the period the sale is recorded, based upon our prior experience and current trends. Significant management judgments and estimates must be made and used in estimating sales returns and allowances relating to revenue recognized in any accounting period. Selling, General and Administration Expenses Selling, general and administration expenses include shipping costs and advertising, which are expensed as incurred. Shipping and handling charges, as well as freight to customers, are included in distribution expenses as part of selling, general and administration expenses. Deferred Financing Costs Deferred financing costs represent costs incurred in conjunction with our debt financing activities. Deferred financing costs related to our revolving credit facility are capitalized and amortized over the life of the related financing arrangement. If the debt is retired early, the related unamortized deferred financing costs are written off in the period the debt is retired and are recorded in the statement of operations under the caption other non-operating income (expense), net. Post-Retirement Medical Benefits The determination of postretirement plan obligations and their associated expenses requires the use of actuarial valuations to estimate participant plan benefits employees earn while working as well as the present value of those benefits. Inherent in these valuations are financial assumptions including the eligibility criteria of participants and discount rates at which liabilities can be settled. Management reviews these assumptions annually with its actuarial advisors. The actuarial assumptions used may differ materially from actual results due to changing market and economic conditions, or longer or shorter life spans of participants. We recognize the underfunded or overfunded status of a postretirement plan as an asset or liability and recognize changes in the funded status in the year in which the changes occur through accumulated other comprehensive income, which is a component of stockholders’ equity. Share-Based Compensation We measure and recognize compensation expense for all share-based payment awards made to employees and directors based on estimated fair values on the grant date. The value of the portion of the award that is ultimately expected to vest is recognized as an expense on a straight-line basis over the requisite service periods in our consolidated statements of operations. Forfeitures are estimated at the time of grant based on historical trends in order to estimate the amount of share-based awards that will ultimately vest. We monitor actual forfeitures for any subsequent adjustment to forfeiture rates. Accounting for Income Taxes Income taxes are calculated using the asset and liability method. Deferred tax assets and liabilities are determined based on the estimated future tax effects of temporary differences between the financial statement carrying amounts and the tax bases of assets and liabilities, as measured by the current enacted tax rates. We maintain valuation allowances when it is more likely than not that all or a portion of a deferred asset will not be realized. The valuation allowance is intended to provide for the uncertainty regarding the ultimate utilization of our U.S. foreign tax credit carryovers and foreign net operating loss carryovers. In determining whether a valuation allowance is warranted, we consider all positive and negative evidence and all sources of taxable income such as prior earnings history, expected future earnings, carryback and carryforward periods and tax strategies to estimate if sufficient future taxable income will be generated to realize the deferred tax asset. The assessment of the adequacy of our valuation allowance is based on our estimates of taxable income by jurisdiction in which we operate and the period over which our deferred tax assets will be recoverable. In the event that actual results differ from these estimates, or we adjust these estimates in future periods for current trends or expected changes in our estimating assumptions, we may need to modify the level of valuation allowance which could materially impact our business, financial condition and results of operations. The valuation allowance of $0.4 million as of December 31, 2017 is intended to provide for the uncertainty regarding the ultimate realization of our U.S. foreign tax credit carryovers and foreign net operating loss carryovers. Based on these considerations, we believe it is more likely than not that we will realize the benefit of the net deferred tax asset of $32.4 million as of December 31, 2017, which is net of the remaining valuation allowance. Tax benefits are recognized for an uncertain tax position when, in management’s judgment, it is more likely than not that the position will be sustained upon examination by a taxing authority. For a tax position that meets the more-likely-than-not recognition threshold, the tax benefit is measured as the largest amount that is judged to have a greater than 50% likelihood of being realized upon ultimate settlement with a taxing authority. The liability associated with unrecognized tax benefits is adjusted periodically due to changing circumstances and when new information becomes available. Such adjustments are recognized entirely in the period in which they are identified. The effective tax rate includes the net impact of changes in the liability for uncertain tax positions. As of December 31, 2017, we do not believe there is a need to establish a liability for uncertain tax positions. In December 2017, the U.S. enacted the Tax Cuts and Jobs Act (the “Act”), which included a broad range of tax reform affecting businesses, including the reduction of the federal corporate tax rate from 35% to 21%, changes in the deductibility of certain business expenses, and the manner in which international operations are taxed in the U.S. For a discussion of the impact of the Act on our consolidated financial statements, see Note 16, “Income Taxes,” of the notes to our consolidated financial statements. Net Earnings per Common Share We present two calculations of earnings per common share. “Basic” earnings per common share equals net income divided by weighted average common shares outstanding during the period. “Diluted” earnings per common share equals net income divided by the sum of weighted average common shares outstanding during the period plus potentially dilutive common shares. Potentially dilutive common shares that are anti-dilutive are excluded from net earnings per common share. The following is a reconciliation of the shares used in calculating basic and dilutive net earnings per common share. 2017 2016 2015 (In thousands) Weighted average common shares outstanding – Basic 22,726 22,723 22,812 Plus incremental shares from assumed conversions: Dilutive effect of restricted shares and performance shares 472 360 330 Weighted average common shares outstanding – Diluted 23,198 23,083 23,142 The average shares listed below were not included in the computation of diluted earnings per share because to do so would have been anti-dilutive for the periods presented or because they were excluded under the treasury method. 2017 2016 2015 (In thousands) Restricted and performance shares 248 304 307 Environmental Reserves We are subject to various U.S. Federal and state and local environmental laws and regulations and are involved in certain environmental remediation efforts. We estimate and accrue our liabilities resulting from such matters based upon a variety of factors including the assessments of environmental engineers and consultants who provide estimates of potential liabilities and remediation costs. Such estimates are not discounted to reflect the time value of money due to the uncertainty in estimating the timing of the expenditures, which may extend over several years. Potential recoveries from insurers or other third parties of environmental remediation liabilities are recognized independently from the recorded liability, and any asset related to the recovery will be recognized only when the realization of the claim for recovery is deemed probable. Asbestos Litigation In evaluating our potential asbestos-related liability, we use an actuarial study that is prepared by a leading actuarial firm with expertise in assessing asbestos-related liabilities. We evaluate the estimate of the range of undiscounted liability to determine which amount to accrue. Based on the information contained in the actuarial study and all other available information considered by us, we have concluded that no amount within the range was more likely than any other and, therefore, in assessing our asbestos liability we compare the low end of the range to our recorded liability to determine if an adjustment is required. Legal costs are expensed as incurred. Loss Contingencies We have loss contingencies, for such matters as legal claims and legal proceedings. Establishing loss reserves for these matters requires estimates, judgment of risk exposure and ultimate liability. We record provisions when the liability is considered probable and reasonably estimable. Significant judgment is required for both the determination of probability and the determination as to whether an exposure can be reasonably estimated. We maintain an ongoing monitoring and identification process to assess how the activities are progressing against the accrued estimated costs. As additional information becomes available, we reassess our potential liability related to these matters. Adjustments to the liabilities are recorded in the statement of operations in the period when additional information becomes available. Such revisions of the potential liabilities could have a material adverse effect on our business, financial condition or results of operations. Product Warranty and Overstock Returns Many of our products carry a warranty ranging from a 90-day limited warranty to a lifetime limited warranty, which generally covers defects in materials or workmanship and failure to meet industry published specifications and/or the result of installation error. In addition to warranty returns, we also permit our customers to return new, undamaged products to us within customer-specific limits (which are generally limited to a specified percentage of their annual purchases from us) in the event that they have overstocked their inventories. We accrue for product warranties and overstock returns as a percentage of sales at the time products are sold, based upon estimates established using historical information on the nature, frequency and average cost of claims. Revision to the accrual is made when necessary, based upon changes in these factors. We regularly study trends of such claims. Trade Receivables In compliance with accounting standards, sales of accounts receivable are reflected as a reduction of accounts receivable in the consolidated balance sheet at the time of sale and any related expense is included in selling, general and administrative expenses in our consolidated statements of operations. Concentrations of Credit Risk Financial instruments that potentially subject us to significant concentrations of credit risk consist principally of cash investments and accounts receivable. We place our cash investments with high quality financial institutions and limit the amount of credit exposure to any one institution. Although we are directly affected by developments in the vehicle parts industry, management does not believe significant credit risk exists. With respect to accounts receivable, such receivables are primarily from warehouse distributors and major retailers in the automotive aftermarket industry located in the U.S. We perform ongoing credit evaluations of our customers’ financial conditions. Our five largest individual customers accounted for approximately 70% of our consolidated net sales in 2017 and 2016, and approximately 68% of our consolidated net sales in 2015. During 2017, O’Reilly Automotive, Inc., Advance Auto Parts, Inc., NAPA Auto Parts, and AutoZone, Inc. accounted for 21%, 17%, 16% and 10% of our consolidated net sales, respectively. Net sales from each of the customers were reported in both our Engine Management and Temperature Control Segments. The loss of one or more of these customers or, a significant reduction in purchases of our products from any one of them, could have a materially adverse impact on our business, financial condition and results of operations. Substantially all of the cash and cash equivalents, including foreign cash balances, at December 31, 2017 and 2016 were uninsured. Foreign cash balances at December 31, 2017 and 2016 were $13.1 million and $16.5 million, respectively. Recently Issued Accounting Pronouncements Standards not yet adopted as of December 31, 2017 Revenue from Contracts with Customers In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers Revenue from Contracts with Customers – Deferral of the Effective Date Effective January 1, 2018, we will adopt the requirements of Topic 606 using the modified retrospective method. Upon adoption, we will recognize the cumulative effect of initially applying the new revenue standard as an adjustment to the opening balance of retained earnings. Using the modified retrospective method of adoption, the comparative information for periods prior to 2018 will not be restated and instead will continue to be reported under the accounting standards in effect for those periods. We anticipate that the adoption of the new standard will not result in a material difference between the recognition of revenue under Topic 606 and prior accounting standards. For the majority of our net sales, revenue will continue to be recognized when products are shipped from our distribution facilities, or when received by our customers, depending upon the terms of the contract. Under the new revenue standard, (1) the return of cores from customers used in our manufacturing processes for air conditioning compressors, diesel injectors, and diesel pumps will be estimated and recorded to inventory at the time of sale instead of upon receipt of the returned cores, and (2) overstock returns will be recorded gross of expected recoveries. Adoption of the new standard will result in an increase in inventory and accrued customer returns, and offsetting changes in net sales and cost of sales, with no material change to our net income on an ongoing basis. In addition, to meet the disaggregation disclosure requirements under Topic 606, we anticipate our disclosure of revenue disaggregation will be by major product group, geographic area and major sales channels. The following table provides a brief description of the additional recent accounting pronouncements that could have an impact on our financial statements: Standard Description Date of adoption Effects on the financial statements or other significant matters Standards that are not yet adopted as of December 31, 2017 ASU 2016-02, Leases This standard outlines the need to recognize a right-of-use asset and a lease liability for virtually all leases (other than leases that meet the definition of a short-term lease). For income statement purposes, the FASB retained the dual model, requiring leases to be classified as either operating or financing. Operating leases will result in straight-line expense while finance leases will result in a front-loaded expense pattern. January 1, 2019, with early adoption permitted The new standard must be adopted utilizing a modified retrospective transition, and provides for certain expedients. The new standard will require that we recognize all of our leases, including our current operating leases, on the balance sheet. To date, we have taken an inventory of all of our operating leases, which consist primarily of real estate and auto leases, and are currently evaluating the appropriate discount rates to use in calculating the right to use asset. We will be continuously assessing the impact of the new standard and the impact on our systems and processes through January 1, 2019, our planned date of adoption. ASU 2016-15, Statement of Cash Flows This standard is intended to reduce diversity in practice and to provide guidance as to how certain cash receipts and cash payments are presented and classified in the statement of cash flows. January 1, 2018, with early adoption permitted The new standard requires application using a retrospective transition method. We do not anticipate that the adoption of this standard will have a material effect on our consolidated financial statements. ASU Simplifying the Test for Goodwill Impairment This standard is intended to simplify the accounting for goodwill impairment. ASU 2017-04 removes Step 2 of the test, which requires a hypothetical purchase price allocation. A goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. January 1, 2020, with early adoption permitted The new standard should be applied prospectively. We will consider the new standard when performing our annual impairment test and evaluate when we will adopt the new standard. ASU 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost This standard requires employers that present operating income in their consolidated statement of operations to include only the service cost component of net periodic pension cost and net periodic postretirement benefit cost in operating expenses (together with other employee compensation costs). The other components of net benefit cost, including amortization of prior service cost/credit, and settlement and curtailment effects, are to be included in other non-operating income (expense). The new standard requires retrospective reclassification of the effects of the new standard on the statement of operations. January 1, 2018, with early adopted permitted The new standard will require that we retrospectively reclassify all components of net periodic pension cost and net periodic postretirement benefit cost, other than the service cost component, in our statement of operations from selling, general and administrated expenses, as presently reported, to other non-operating income (expense). Standards that were adopted ASU Balance Sheet Classification of Deferred Taxes This standard requires entities with a classified balance sheet to present all deferred tax assets and liabilities as noncurrent. The new guidance requires entities to offset all deferred tax assets and liabilities (and valuation allowances) for each tax-paying jurisdiction within each tax-paying component. The net deferred tax must be presented as a single noncurrent amount. January 1, 2017 The adoption of the new standard resulted in the reclassification of deferred tax assets previously reported as current deferred tax assets to noncurrent deferred tax assets in our consolidated balance sheets. We adopted the new standard retrospectively, and as such, all prior period current deferred tax assets in our consolidated balance sheets have also been reclassified to noncurrent deferred tax assets for comparative purposes. ASU 2015-11, Simplifying the Measurement of Inventory This standard changes the measurement principle for inventory from the lower of cost or market to lower of cost and net realizable value for entities that measure inventory using first-in, first-out or average cost. In addition, this standard eliminates the requirement for these entities to consider replacement cost or net realizable value less an approximate normal profit margin when measuring inventory. January 1, 2017 The prospective adoption of the new standard did not have a material effect on our consolidated financial statements. ASU 2016-09, Improvements to Employee Share-Based Payment Accounting This standard requires (1) that the tax effects related to share-based payments at settlement (or expiration) be recorded through the tax provision (benefit) in the income statement rather than in equity as permitted under prior guidance under certain circumstances; (2) that all tax-related cash flows resulting from share-based payme |
Business Acquisitions and Inves
Business Acquisitions and Investments | 12 Months Ended |
Dec. 31, 2017 | |
Business Acquisitions and Investments [Abstract] | |
Business Acquisitions and Investments | 2. Business Acquisitions and Investments 2017 Equity Investment Foshan FGD SMP Automotive Compressor Co., Ltd. In November 2017, we formed a 50/50 joint venture with Foshan Guangdong Automotive Air Conditioning Co., Ltd. (“FGD”), a China-based manufacturer of air conditioning compressors for the automotive aftermarket and the Chinese OE market. We acquired our 50% interest in the joint venture for approximately $12.5 million. We determined that due to a lack of a voting majority, and other qualitative factors, we do not control the operations of the joint venture and accordingly, our investment in the joint venture is accounted for under the equity method of accounting. 2016 Business Acquisitions General Cable Corporation North American Automotive Ignition Wire Business Acquisition In May 2016, we acquired the North American automotive ignition wire business of General Cable Corporation for approximately $67.5 million. The acquisition was paid for in cash funded by our revolving credit facility with JPMorgan Chase, as agent. The acquisition includes the purchase of certain assets and the assumption of certain liabilities of General Cable Corporation’s (and certain of its affiliates) automotive ignition wire business in North America as well as 100% of the equity interests of a General Cable subsidiary in Nogales, Mexico. The following table presents the allocation of the purchase price to the assets acquired and liabilities assumed, based on their fair values (in thousands): Purchase Price $ 67,451 Assets acquired and liabilities assumed: Receivables $ 3,130 Inventory 12,567 Other current and noncurrent assets (1) 334 Property, plant and equipment, net 2,660 Intangible assets 42,440 Goodwill 12,746 Current liabilities (6,426 ) Net assets acquired $ 67,451 (1) Other current and noncurrent assets includes $0.2 million of cash acquired. Intangible assets acquired of $42.4 million consists of customer relationships of $39.4 million that will be amortized on a straight-line basis over the estimated useful life of 15 years; a non-compete agreement of $2.2 million that will be amortized on a straight-line basis over the estimated useful life of 5 years; and a supply agreement of $0.8 million that will be amortized on a straight-line basis over the estimated useful life of 1 year. Goodwill of $12.7 million was allocated to the Engine Management Segment and is deductible for income tax purposes. The goodwill reflects relationships, business specific knowledge and the replacement cost of an assembled workforce associated with personal reputations, as well as the value of expected synergies. Incremental net sales from the acquisition included in our consolidated statements of operations were $38.4 million for the year ended December 31, 2017. |
Restructuring and Integration E
Restructuring and Integration Expense (Income) | 12 Months Ended |
Dec. 31, 2017 | |
Restructuring and Integration Expense (Income) [Abstract] | |
Restructuring and Integration Expense (Income) | 3. Restructuring and Integration Expense (Income) The aggregated liabilities included in “sundry payables and accrued expenses” and “other accrued liabilities” in the consolidated balance sheet relating to the restructuring and integration activities as of and for the years ended December 31, 2017 and 2016, consisted of the following (in thousands): Workforce Reduction Other Exit Costs Total Exit activity liability at December 31, 2015 $ 270 $ 591 $ 861 Restructuring and integration costs: Amounts provided for during 2016 2,934 1,023 3,957 Cash payments (392 ) (1,154 ) (1,546 ) Reclassification to ongoing accrued liabilities (1) (236 ) (460 ) (696 ) Exit activity liability at December 31, 2016 $ 2,576 $ — $ 2,576 Restructuring and integration costs: Amounts provided for during 2017 2,220 3,953 6,173 Cash payments (1,979 ) (3,702 ) (5,681 ) Foreign currency exchange rate changes and other 37 (251 ) (214 ) Exit activity liability at December 31, 2017 $ 2,854 $ — $ 2,854 (1) Applies to liabilities associated with the prior year restructuring and integration programs which relate primarily to employee severance and other retiree benefit enhancements to be paid through 2020 and environmental clean-up costs at our Long Island City, New York location in connection with the closure of our manufacturing operations at the site. These amounts were reclassified out of the restructuring and integration liability and into ongoing accrued liabilities as of December 31, 2016. Restructuring Costs Plant Rationalization Program In February 2016, in connection with our ongoing efforts to improve operating efficiencies and reduce costs, we finalized our intention to implement a plant rationalization initiative. As part of the plant rationalization, certain production activities will be relocated from our Grapevine, Texas manufacturing facility to facilities in Greenville, South Carolina and Reynosa, Mexico, certain service functions will be relocated from Grapevine, Texas to our administrative offices in Lewisville, Texas, and our Grapevine, Texas facility will be closed. As of December 31, 2017, all of our Grapevine, Texas production activities have been relocated to facilities in Greenville, South Carolina and Reynosa, Mexico. In addition, as part of the program, certain production activities were relocated from our Greenville, South Carolina manufacturing facility to our manufacturing facility in Bialystok, Poland. Restructuring and integration expenses expected to be incurred throughout the program of approximately $5.8 million consists of employee severance and relocation of certain machinery and equipment. Through December 31, 2017, total restructuring and integration expenses related to the program of $5.6 million were recognized. As of December 31, 2017, the plant rationalization program is substantially completed. Activity, by segment, for the year ended December 31, 2017 and 2016 related to our plant rationalization program consisted of the following (in thousands): Engine Management Temperature Control Other Total Exit activity liability at December 31, 2015 $ — $ — $ — $ — Restructuring and integration costs: Amounts provided for during 2016 844 2,361 — 3,205 Cash payments (833 ) (318 ) — (1,151 ) Exit activity liability at December 31, 2016 $ 11 $ 2,043 $ — $ 2,054 Restructuring and integration costs: Amounts provided for during 2017 631 1,774 — 2,405 Cash payments (642 ) (2,341 ) — (2,983 ) Exit activity liability at December 31, 2017 $ — $ 1,476 $ — $ 1,476 Orlando Plant Rationalization Program In January 2017, to further our ongoing efforts to improve operating efficiencies and reduce costs, we finalized our intention to implement a plant rationalization initiative at our Orlando, Florida facility. As part of the plant rationalization, we will relocate production activities from our Orlando, Florida manufacturing facility to Independence, Kansas, and close our Orlando, Florida facility. In addition, certain production activities will be relocated from our Independence, Kansas manufacturing facility to our manufacturing facility in Reynosa, Mexico. Restructuring and integration expenses expected to be incurred throughout the program of approximately $2.9 million consists of employee severance and relocation of certain machinery and equipment. Through December 31, 2017, total restructuring and integration expenses related to the program of $1.8 million were recognized. We anticipate that the Orlando plant rationalization will be completed by the second half of 2018. Activity, by segment, for the year ended December 31, 2017 related to our Orlando plant rationalization program consisted of the following (in thousands): Engine Management Temperature Control Other Total Exit activity liability at December 31, 2016 $ — $ — $ — $ — Restructuring and integration costs: Amounts provided for during 2017 1,758 — — 1,758 Cash payments (772 ) — — (772 ) Exit activity liability at December 31, 2017 $ 986 $ — $ — $ 986 Integration Costs Wire and Cable Relocation In connection with our acquisition of the North American automotive ignition wire business of General Cable Corporation in May 2016, we incurred certain integration expenses, including costs incurred in connection with the consolidation of the General Cable Corporation Altoona, Pennsylvania wire distribution center into our existing wire distribution center in Edwardsville, Kansas and the relocation of certain machinery and equipment. In October 2016, we further announced our plan to relocate all production from the acquired Nogales, Mexico wire set assembly operation to our existing wire assembly facility in Reynosa, Mexico and to close the Nogales, Mexico plant. Integration expenses expected to be incurred related to the closure of the Nogales, Mexico plant include employee severance and the relocation of certain machinery and equipment. Total integration expenses of $4.1 million are expected to be incurred related to the wire and cable relocation program. Through December 31, 2017, integration expenses related to the program of $2.5 million were recognized. We anticipate that the wire and cable relocation program will be completed by the second half of 2018. Activity, by segment, for the year ended December 31, 2017 and 2016 related to our wire and cable relocation program consisted of the following (in thousands): Engine Management Temperature Control Other Total Exit activity liability at December 31, 2015 $ — $ — $ — $ — Restructuring and integration costs: Amounts provided for during 2016 714 — — 714 Cash payments (192 ) — — (192 ) Exit activity liability at December 31, 2016 $ 522 $ — $ — $ 522 Restructuring and integration costs: Amounts provided for during 2017 1,759 ) — — 1,759 Cash payments (1,926 ) — — (1,926 ) Foreign currency exchange rate changes 37 — — 37 Exit activity liability at December 31, 2017 $ 392 $ — $ — $ 392 |
Sale of Receivables
Sale of Receivables | 12 Months Ended |
Dec. 31, 2017 | |
Sale of Receivables [Abstract] | |
Sale of Receivables | 4. Sale of Receivables From time to time, we sell undivided interests in certain of our receivables to financial institutions. We enter these agreements at our discretion when we determine that the cost of factoring is less than the cost of servicing our receivables with existing debt. Under the terms of the agreements, we retain no rights or interest, have no obligations with respect to the sold receivables, and do not service the receivables after the sale. As such, these transactions are being accounted for as a sale. Pursuant to these agreements, we sold $780.5 million and $759.2 million of receivables for the years ended December 31, 2017 and 2016, respectively. A charge in the amount of $22.6 million, $19.3 million and $14.3 million related to the sale of receivables is included in selling, general and administrative expenses in our consolidated statements of operations for the years ended December 31, 2017, 2016 and 2015, respectively. If we do not enter into these arrangements or if any of the financial institutions with which we enter into these arrangements were to experience financial difficulties or otherwise terminate these arrangements, our financial condition, results of operations and cash flows could be materially and adversely affected by delays or failures to collect future trade accounts receivable. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2017 | |
Inventories [Abstract] | |
Inventories | 5. Inventories December 31, 2017 2016 (In thousands) Finished goods $ 209,800 $ 203,700 Work-in-process 7,536 6,823 Raw materials 109,075 101,954 Total inventories $ 326,411 $ 312,477 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | 6. Property, Plant and Equipment December 31, 2017 2016 (In thousands) Land, buildings and improvements $ 46,930 $ 46,447 Machinery and equipment 132,467 128,650 Tools, dies and auxiliary equipment 45,769 44,683 Furniture and fixtures 28,352 27,482 Leasehold improvements 10,348 8,369 Construction-in-progress 16,318 14,419 Total property, plant and equipment 280,184 270,050 Less accumulated depreciation 191,081 191,551 Total property, plant and equipment, net $ 89,103 $ 78,499 Depreciation expense was $15.4 million in 2017, $12.8 million in 2016 and $12.1 million 2015. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Other Intangible Assets [Abstract] | |
Goodwill and Other Intangible Assets | 7. Goodwill and Other Intangible Assets Goodwill We assess the impairment of long‑lived and identifiable intangibles assets and goodwill whenever events or changes in circumstances indicate that the carrying value may not be recoverable. With respect to goodwill, we test for impairment on an annual basis or in interim periods if an event occurs or circumstances change that may indicate the fair value of a reporting unit is below its carrying amount. We completed our annual impairment test of goodwill as of December 31, 2017. When performing our evaluation of goodwill for impairment, if we conclude qualitatively that it is not more likely than not that the fair value of the reporting unit is less than its carrying amount, then the two-step impairment test is not required. If we are unable to reach this conclusion, then we would perform the two-step impairment test. We elected to bypass the qualitative assessment and have decided to perform the two-step impairment test for goodwill at both the Engine Management and Temperature Control reporting units at December 31, 2017. The first step of the impairment analysis consists of a comparison of the fair value of the reporting units with their respective carrying amounts, including goodwill. If the fair value of the reporting unit exceeds the carrying amount of the reporting unit, step two of the impairment analysis is not required. The fair values of the Engine Management and Temperature Control reporting units were determined based upon the Income Approach, which estimates the fair value based on future discounted cash flows, and the Market Approach, which estimates the fair value based on market prices of comparable companies. We base our fair value estimates on projected financial information which we believe to be reasonable. We also considered our total market capitalization as of December 31, 2017. Our December 31, 2017 annual goodwill impairment analysis did not result in an impairment charge as it was determined that the fair values of our Engine Management and Temperature Control reporting units were in excess of their carrying amounts. While the fair values exceed the carrying amounts at the present time and we do not believe that impairments are probable, the performance of the business and brands require continued improvement in future periods to sustain their carrying values. Changes in the carrying values of goodwill by operating segment during the years ended December 31, 2017 and 2016 are as follows (in thousands): Engine Management Temperature Control Total Balance as of December 31, 2015: Goodwill $ 79,099 $ 14,270 $ 93,369 Accumulated impairment losses (38,488 ) — (38,488 ) $ 40,611 $ 14,270 $ 54,881 Activity in 2016 Acquisition of the North American automotive ignition wire business of General Cable Corporation. $ 12,746 $ — $ 12,746 Foreign currency exchange rate change (396 ) — (396 ) Balance as of December 31, 2016: Goodwill 91,449 14,270 105,719 Accumulated impairment losses (38,488 ) — (38,488 ) $ 52,961 $ 14,270 $ 67,231 Activity in 2017 Foreign currency exchange rate change 182 — 182 Balance as of December 31, 2017: Goodwill 91,631 14,270 105,901 Accumulated impairment losses (38,488 ) — (38,488 ) $ 53,143 $ 14,270 $ 67,413 Acquired Intangible Assets Acquired identifiable intangible assets as of December 31, 2017 and 2016 consist of: December 31, 2017 2016 (In thousands) Customer relationships $ 87,290 $ 87,070 Trademarks and trade names 6,800 6,800 Non-compete agreements 3,193 3,189 Patents 723 723 Supply agreements 800 800 Leaseholds 160 160 Total acquired intangible assets 98,966 98,742 Less accumulated amortization (1) (43,853 ) (35,830 ) Net acquired intangible assets $ 55,113 $ 62,912 (1) Applies to all intangible assets, except for related trademarks and trade names totaling $5.2 million, which have indefinite useful lives and, as such, are not being amortized. Total amortization expense for acquired intangible assets was $8 million for the year ended December 31, 2017, $7.1 million for the year ended December 31, 2016, and $4.9 million for the year ended December 31, 2015. Based on the current estimated useful lives assigned to our intangible assets, amortization expense is estimated to be $7.6 million for 2018, $6.3 million in 2019, $5.9 million in 2020, $4.6 million in 2021 and $25.5 million in the aggregate for the years 2022 through 2031. Other Intangible Assets Other intangible assets include computer software. Computer software as of December 31, 2017 and 2016 totaled $17.2 million and $16.7 million. Total accumulated computer software amortization as of December 31, 2017 and 2016 was $16.1 million and $15.6 million, respectively. Computer software is amortized over its estimated useful life of 3 to 10 years. Amortization expense for computer software was $0.5 million, $0.6 million and $0.6 million for the years ended December 31, 2017, 2016 and 2015, respectively. |
Other Assets
Other Assets | 12 Months Ended |
Dec. 31, 2017 | |
Other Assets [Abstract] | |
Other Assets | 8. Other Assets December 31, 2017 2016 (In thousands) Equity in joint ventures $ 31,184 $ 19,924 Deferred compensation 13,612 10,763 Long term receivables — 1,061 Deferred financing costs, net 630 973 Other 853 842 Total other assets, net $ 46,279 $ 33,563 Deferred compensation consists of assets held in a nonqualified defined contribution pension plan as of December 31, 2017 and 2016, respectively. Equity Method Investments In November 2017, we formed a 50/50 joint venture with Foshan Guangdong Automotive Air Conditioning Co., Ltd. (“FGD”), a China-based manufacturer of air conditioning compressors for the automotive aftermarket and the Chinese OE market. We acquired our 50% interest in the joint venture for approximately $12.5 million. We determined that due to a lack of a voting majority, and other qualitative factors, we do not control the operations of the joint venture and accordingly, our investment in the joint venture is accounted for under the equity method of accounting. Purchases from FGD from the date of acquisition through December 31, 2017 were not significant. In April 2014, we formed a 50/50 joint venture with Gwo Yng Enterprise Co., Ltd. (“Gwo Yng”), a China-based manufacturer of air conditioner accumulators, filter driers, hose assemblies and switches for the automotive aftermarket and OEM/OES markets. We acquired our 50% interest in the joint venture for $14 million. We determined that due to a lack of a voting majority and other qualitative factors, we do not control the operations of the joint venture and accordingly, our investment in the joint venture is accounted for under the equity method of accounting. During the years ended December 31, 2017 and 2016, we made purchases from Gwo Yng of approximately $15.1 million and $15.4 million, respectively. In January 2013, we acquired an approximate 25% minority interest in Orange Electronic Co., Ltd. (“Orange”) for $6.3 million. Orange is a manufacturer of tire pressure monitoring system sensors and is located in Taiwan. As of December 31, 2017, our minority interest in Orange of 19.4% is accounted for using the equity method of accounting as we have the ability to exercise significant influence. During the fourth quarter of 2017, after a review of the recent financial performance and near term prospects for Orange, we determined that the decline in quoted market prices below the carrying amount of our investment in Orange is other than temporary and, as such, recognized a noncash impairment charge of approximately $1.8 million in the quarter. The impairment charge has been reported in our Engine Management Segment and is included in other non-operating income (expense), net in our consolidated statements of operations. Purchases from Orange during the years ended December 31, 2017 and 2016 were approximately $4.3 million and $5 million, respectively. |
Credit Facilities and Long-Term
Credit Facilities and Long-Term Debt | 12 Months Ended |
Dec. 31, 2017 | |
Credit Facilities and Long-Term Debt [Abstract] | |
Credit Facilities and Long-Term Debt | 9. Credit Facilities and Long-Term Debt Total debt outstanding is summarized as follows: December 31, 2017 2016 (In thousands) Revolving credit facilities $ 57,000 $ 54,812 Other (1) 4,778 163 Total debt $ 61,778 $ 54,975 Current maturities of debt $ 61,699 $ 54,855 Long-term debt 79 120 Total debt $ 61,778 $ 54,975 (1) Other includes borrowings under our Polish overdraft facility of Zloty 16.2 million (approximately $4.7 million). Maturities of long-term debt are not material for the year ended December 31, 2018 and beyond. Revolving Credit Facility In October 2015, we entered into a Credit Agreement with JPMorgan Chase Bank, N.A., as agent, and a syndicate of lenders for a senior secured revolving credit facility with a line of credit of up to $250 million (with an additional $50 million accordion feature) and a maturity date in October 2020. The line of credit under the agreement also allows for a $10 million line of credit to Canada as part of the $250 million available for borrowing. Direct borrowings under the credit agreement bear interest at LIBOR plus a margin ranging from 1.25% to 1.75% based on our borrowing availability, or floating at the alternate base rate plus a margin ranging from 0.25% to 0.75% based on our borrowing availability, at our option. The credit agreement is guaranteed by certain of our subsidiaries and secured by certain of our assets. Borrowings under the credit agreement are secured by substantially all of our assets, including accounts receivable, inventory and certain fixed assets, and those of certain of our subsidiaries. Availability under the credit agreement is based on a formula of eligible accounts receivable, eligible inventory, eligible equipment and eligible fixed assets. After taking into account outstanding borrowings under the credit agreement, there was an additional $142.9 million available for us to borrow pursuant to the formula at December 31, 2017. Outstanding borrowings under the credit agreement, which are classified as current liabilities, were $57 million and $54.8 million at December 31, 2017 and 2016, respectively. Borrowings under the credit agreement have been classified as current liabilities based upon the accounting rules and certain provisions in the agreement. At December 31, 2017, the weighted average interest rate on our credit agreement was 2.7%, which consisted of $57 million in direct borrowings. At December 31, 2016, the weighted average interest rate on our credit agreement was 2.3%, which consisted of $45 million in direct borrowings at 2% and an alternative base rate loan of $9.8 million at 4%. Our average daily alternative base rate loan balance was $3.8 million and $2.6 million during 2017 and 2016, respectively. At any time that our borrowing availability is less than the greater of either (a) $25 million, or 10% of the commitments if fixed assets are not included in the borrowing base, or (b) $31.25 million, or 12.5% of the commitments if fixed assets are included in the borrowing base, the terms of the credit agreement provide for, among other provisions, a financial covenant requiring us, on a consolidated basis, to maintain a fixed charge coverage ratio of 1:1 at the end of each fiscal quarter (rolling four quarters). As of December 31, 2017, we were not subject to these covenants. The credit agreement permits us to pay cash dividends of $20 million and make stock repurchases of $20 million in any fiscal year subject to a minimum availability of $25 million. Provided specific conditions are met, the credit agreement also permits acquisitions, permissible debt financing, capital expenditures, and cash dividend payments and stock repurchases of greater than $20 million. Polish Overdraft Facility In December 2017, our Polish subsidiary, SMP Poland sp.z.o.o., entered into an overdraft facility with HSBC Bank Polska S.A. (“HSBC Poland”) for Zloty 30 million (approximately $8.2 million). The facility expires on December 2018. Borrowings under the overdraft facility will bear interest at a rate equal to WIBOR + 0.75% and are guaranteed by Standard Motor Products, Inc., the ultimate parent company. At December 31, 2017, borrowings under the overdraft facility were Zloty 16.2 million (approximately $4.7 million). Deferred Financing Costs We had deferred financing costs of approximately $1 million and $1.3 million as of December 31, 2017 and 2016, respectively. Deferred financing costs as of December 31, 2017 are related to our revolving credit facility. Scheduled amortization for future years, assuming no prepayments of principal is as follows: (In thousands) 2018 $ 343 2019 343 2020 287 Total amortization $ 973 |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2017 | |
Stockholders' Equity [Abstract] | |
Stockholders' Equity | 10. Stockholders’ Equity We have authority to issue 500,000 shares of preferred stock, $20 par value, and our Board of Directors is vested with the authority to establish and designate any series of preferred, to fix the number of shares therein and the variations in relative rights as between each series. In December 1995, our Board of Directors established a new series of preferred shares designated as Series A Participating Preferred Stock. The number of shares constituting the Series A Preferred Stock is 30,000. The Series A Preferred Stock is designed to participate in dividends, ranks senior to our common stock as to dividends and liquidation rights and has voting rights. Each share of the Series A Preferred Stock shall entitle the holder to one thousand votes on all matters submitted to a vote of the stockholders of the Company. No such shares were outstanding at December 31, 2017 and 2016. In February 2015, our Board of Directors authorized the purchase of up to $10 million of our common stock under a stock repurchase program. In July 2015, our Board of Directors authorized the purchase of up to an additional $10 million of our common stock under another stock repurchase program. Under these programs, during the year ended December 31, 2015, we repurchased 551,791 shares of our common stock at a total cost of $19.6 million. As of December 31, 2015, there was approximately $0.4 million available for future stock repurchases under the programs. In January 2016, we repurchased an additional 10,135 shares of our common stock under the programs at a total cost of $0.4 million, thereby completing the 2015 Board of Directors authorizations. Our Board of Directors did not authorize a stock repurchase program in 2016. In February 2017, our Board of Directors authorized the purchase of up to $20 million of our common stock under a stock repurchase program. In November 2017, our Board of Directors authorized the purchase of up to an additional $10 million of our common stock under another stock repurchase program. Under these programs, during the year ended December 31, 2017, we repurchased 539,760 shares of our common stock at a total cost of $24.8 million. As of December 31, 2017, there was approximately $5.2 million available for future stock repurchases under the programs. During the period from January 1, 2018 through February 16, 2018, we repurchased an additional 35,756 shares of our common stock under the programs at a total cost of $1.7 million, thereby leaving approximately $3.5 million available for future stock purchases under the program. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 12 Months Ended |
Dec. 31, 2017 | |
Accumulated Other Comprehensive Income [Abstract] | |
Accumulated Other Comprehensive Income | 11. Accumulated Other Comprehensive Income Changes in Accumulated Other Comprehensive Income by Component Foreign Currency Translation Adjustments Unrecognized Postretirement Benefit Costs (Credit) Total (In thousands) Balance at December 31, 2015 $ (5,958 ) $ (516 ) $ (6,474 ) Other comprehensive income before reclassifications (5,294 ) 332 (4,962 ) Amounts reclassified from accumulated other comprehensive income — 408 408 Other comprehensive income, net (5,294 ) 740 (4,554 ) Balance at December 31, 2016 $ (11,252 ) $ 224 $ (11,028 ) Other comprehensive income before reclassifications 7,027 289 7,316 Amounts reclassified from accumulated other comprehensive income — (397 ) (397 ) Other comprehensive income, net 7,027 (108 ) 6,919 Balance at December 31, 2017 $ (4,225 ) $ 116 $ (4,109 ) Reclassifications Out of Accumulated Other Comprehensive Income and into the Consolidated Statements of Operations Year Ended December 31, Details About Accumulated Other Comprehensive Income Components 2017 2016 Amortization of postretirement benefit plans: (In thousands) Prior service benefit (1) $ — $ (54 ) Unrecognized (gain) loss (1) (661 ) 763 Total before income tax (661 ) 709 Income tax expense 264 (301 ) Total reclassifications for the period $ (397 ) $ 408 (1) These accumulated other comprehensive income components are included in the computation of net periodic postretirement benefit costs, which are included in selling, general and administrative expenses in our consolidated statements of operations (see Note 14 for additional information). |
Stock-Based Compensation Plans
Stock-Based Compensation Plans | 12 Months Ended |
Dec. 31, 2017 | |
Stock-Based Compensation Plans [Abstract] | |
Stock-Based Compensation Plans | 12. Stock-Based Compensation Plans Our stock-based compensation program is a broad-based program designed to attract and retain employees while also aligning employees’ interests with the interests of our shareholders. In addition, members of our Board of Directors participate in our stock-based compensation program in connection with their service on our board. In May 2016, our Board of Directors and Shareholders approved the 2016 Omnibus Incentive Plan. The 2016 Omnibus Incentive Plan supersedes the 2006 Omnibus Incentive Plan, which terminated in May 2016. The 2016 Omnibus Incentive Plan is the only remaining plan available to provide stock-based incentive compensation to our employees, directors and other eligible persons. Under the 2016 Omnibus Incentive Plan, which terminates in May 2026, we are authorized to issue, among other things, shares of restricted and performance-based stock to eligible employees and restricted stock to directors of up to 1,100,000 shares. Shares issued under the plan that are cancelled, forfeited or expire by their terms are eligible to be granted again under the 2016 Omnibus Incentive Plan. Awards previously granted under the 2006 Omnibus Incentive Plan are not affected by the plan’s termination, while shares not yet granted under the plan are not available for future issuance. We account for our stock-based compensation plans in accordance with the provisions of FASB ASC 718, Stock Compensation Stock-based compensation expense under our existing plans was $7.1 million ($3.2 million, net of tax), $5.7 million ($3.6 million, net of tax), and $5 million ($3.2 million, net of tax) for the years ended December 31, 2017, 2016 and 2015, respectively. Restricted Stock and Performance Share Grants We currently grant shares of restricted stock to eligible employees and our independent directors and performance-based stock to eligible employees. Selected executives and other key personnel are granted performance awards whose vesting is contingent upon meeting various performance measures with a retention feature. Performance-based shares are subject to a three year measuring period and the achievement of performance targets and, depending upon the achievement of such performance targets, they may become vested on the third anniversary of the date of grant. Each period we evaluate the probability of achieving the applicable targets and we adjust our accrual accordingly. Restricted shares granted to employees become fully vested upon the third anniversary of the date of grant; and for selected key executives certain additional restricted share grants vest 25% upon the attainment of age 60, 25% upon the attainment of age 63 and become fully vested upon the attainment of age 65. Restricted shares granted to directors become fully vested upon the first anniversary of the date of grant. Commencing with the 2015 grants, restricted and performance shares issued to certain key executives and directors are subject to a one or two year holding period upon the lapse of the three year vesting period. Prior to the time a restricted share becomes fully vested or a performance share is issued, the awardees cannot transfer, pledge, hypothecate or encumber such shares. Prior to the time a restricted share is fully vested, the awardees have all other rights of a stockholder, including the right to vote (but not receive dividends during the vesting period). Prior to the time a performance share is issued, the awardees shall have no rights as a stockholder. All shares and rights are subject to forfeiture if certain employment conditions are not met. Under the 2016 Omnibus Incentive Plan, 1,100,000 shares are authorized to be issued. At December 31, 2017, under the plan, there were an aggregate of (a) 418,000 shares of restricted and performance-based stock grants issued, net of forfeitures, and (b) 682,000 shares of common stock available for future grants. For the year ended December 31, 2017, 207,975 restricted and performance-based shares were granted (152,975 restricted shares and 55,000 performance-based shares). In determining the grant date fair value, the stock price on the date of grant, as quoted on the New York Stock Exchange, was reduced by the present value of dividends expected to be paid on the shares issued and outstanding during the requisite service period, discounted at a risk-free interest rate. The risk-free interest rate is based on the U.S. Treasury rates at the date of grant with maturity dates approximately equal to the restriction or vesting period at the grant date. In addition, a further discount for the lack of marketability reduced the fair value of grants issued to certain key executives and directors subject to the one or two year post vesting holding period. Assumptions used in calculating the discount for the lack of marketability include an estimate of stock volatility, risk-free interest rate, and a dividend yield. The fair value of the shares at the date of grant is amortized to expense ratably over the vesting period. Forfeitures on restricted stock grants are estimated at 5% for employees and 0% for executives and directors, respectively, based on evaluation of historical and expected future turnover. As related to restricted and performance stock shares, we recorded compensation expense of $7.1 million ($3.2 million, net of tax), $5.7 million ($3.6 million, net of tax) and $5 million ($3.2 million, net of tax), for the years ended December 31, 2017, 2016 and 2015, respectively. The unamortized compensation expense related to our restricted and performance-based shares was $16.6 million and $15.6 million at December 31, 2017 and 2016, respectively and is expected to be recognized over a weighted average period of 4.8 years and 0.3 years for employees and directors, respectively, as of December 31, 2017 and over a weighted average period of 5.7 years and 0.3 years for employees and directors, respectively, as of December 31, 2016. Our restricted and performance-based share activity was as follows for the years ended December 31, 2017 and 2016: Shares Weighted Average Grant Date Fair Value per Share Balance at December 31, 2015 758,550 $ 27.19 Granted 212,500 42.93 Vested (138,427 ) 31.55 Forfeited (9,775 ) 31.79 Balance at December 31, 2016 822,848 30.46 Granted 207,975 42.79 Vested (169,615 ) 31.26 Forfeited (7,250 ) 37.24 Balance at December 31, 2017 853,958 $ 33.25 The weighted-average grant date fair value of restricted and performance-based shares outstanding as of December 31, 2017, 2016 and 2015 was $28.4 million (or $33.25 per share), $25.1 million (or $30.46 per share), and $20.6 million (or $27.19 per share), respectively. |
Retirement Benefit Plans
Retirement Benefit Plans | 12 Months Ended |
Dec. 31, 2017 | |
Retirement Benefit Plans [Abstract] | |
Retirement Benefit Plans | 13. Retirement Benefit Plans Defined Contribution Plans We maintain various defined contribution plans, which include profit sharing and provide retirement benefits for substantially all of our employees. Matching obligations, in connection with the plans which are funded in cash and typically contributed to the plans in March of the following year, are as follows (in thousands): U.S. Defined Contribution Year ended December 31, 2017 $ 9,980 2016 8,625 2015 8,445 We maintain a defined contribution Supplemental Executive Retirement Plan for key employees. Under the plan, these employees may elect to defer a portion of their compensation and, in addition, we may at our discretion make contributions to the plan on behalf of the employees. In March 2016, contributions of $0.3 million were made related to calendar year 2015. In March 2017, contributions of $0.3 million were made related to calendar year 2016. We have recorded an obligation of $0.6 million for 2017. We also have an Employee Stock Ownership Plan and Trust (“ESOP”) for employees who are not covered by a collective bargaining agreement. In connection therewith, we maintain an employee benefits trust to which we contribute shares of treasury stock. We are authorized to instruct the trustees to distribute such shares toward the satisfaction of our future obligations under the plan. The shares held in trust are not considered outstanding for purposes of calculating earnings per share until they are committed to be released. The trustees will vote the shares in accordance with its fiduciary duties. During 2017, we contributed to the trust an additional 43,300 shares from our treasury and released 43,300 shares from the trust leaving 200 shares remaining in the trust as of December 31, 2017. The provision for expense in connection with the ESOP was approximately $2.2 million in 2017, $2 million in 2016 and $2.2 million in 2015. Defined Benefit Pension Plan We maintain a defined benefit unfunded Supplemental Executive Retirement Plan (“SERP”). The SERP, as amended, is a defined benefit plan pursuant to which we will pay supplemental pension benefits to certain key employees upon the attainment of a contractual participant’s payment date based upon the employees’ years of service and compensation. There was no benefit obligation outstanding related to the SERP as of December 31, 2017 and 2016. We recorded no expense related to the plan during the years ended December 31, 2017 and December 31, 2016. Net periodic benefit cost of $2.5 million was recorded related to the plan for the year ended December 31, 2015. |
Postretirement Medical Benefits
Postretirement Medical Benefits | 12 Months Ended |
Dec. 31, 2017 | |
Postretirement Medical Benefits [Abstract] | |
Postretirement Medical Benefits | 14. Postretirement Medical Benefits We provided, and continue to provide, certain medical and dental care benefits to eligible retired U.S. and Canadian employees. Under the U.S. plan, for non-union employees, a Health Reimbursement Account (“HRA”) was established beginning January 1, 2009 for each qualified U.S. retiree. Annually, and through the year ended December 31, 2016, a fixed amount was credited into the HRA to cover both medical and dental costs for all current and future eligible retirees. Under the Canadian plan, retiree medical and dental benefits were funded using insurance contracts. Premiums under the insurance contracts were funded on a pay-as-you-go basis. The postretirement medical plans to substantially all eligible U.S. and Canadian employees terminated on December 31, 2016. For U.S. plan participants, balances in the HRA accounts at December 31, 2016 will remain available for use until December 31, 2018. Any remaining balance at December 31, 2018 will be forfeited. Postretirement medical and dental benefits to eligible employees will continue to be provided to the 24 former union employees in the U.S. The benefit obligation, funded status, and amounts recognized in the consolidated financial statements for our postretirement medical benefit plans as of and for the years ended December 31, 2017 and 2016, were as follows (in thousands): Postretirement Benefit Plans U.S. Plan Canadian Plan 2017 2016 2017 2016 Change in benefit obligation: Benefit obligation at beginning of year $ 1,574 $ 2,928 $ — $ 74 Service cost — — — — Interest cost 8 11 — 2 Benefits paid (429 ) (831 ) — (17 ) Actuarial gain (481 ) (534 ) — (9 ) Translation adjustment & other — — — (50 ) Benefit obligation at end of year $ 672 $ 1,574 $ — $ — (Unfunded) status of the plans $ (672 ) $ (1,574 ) $ — $ — Postretirement Benefit Plan U.S. Plan 2017 2016 Amounts recognized in the balance sheet: Accrued postretirement benefit liabilities $ 672 $ 1,574 Accumulated other comprehensive (income) loss (pre-tax) related to: Unrecognized net actuarial losses (gains) (194 ) (374 ) Unrecognized prior service cost (credit) — — The estimated net gain that is expected to be amortized from accumulated other comprehensive income into postretirement medical benefits cost during 2018 is not material. Net periodic benefit cost related to our plans includes the following components (in thousands): December 31, U.S. postretirement plan: 2017 2016 2015 Service cost $ — $ — $ — Interest cost 8 11 24 Actuarial net (gain) loss (661 ) 809 1,548 Net periodic benefit cost (credit) $ (653 ) $ 820 $ 1,572 Canadian postretirement plan: Service cost $ — $ — $ — Interest cost — 2 3 Amortization of prior service cost — (54 ) (112 ) Actuarial net gain — (46 ) (22 ) Net periodic benefit cost (credit) $ — $ (98 ) $ (131 ) Total net periodic benefit cost (credit) $ (653 ) $ 722 $ 1,441 Actuarial assumptions used to determine costs and benefit obligations related to our U.S. postretirement plan are as follows: December 31, 2017 2016 2015 Discount rate 0.0 % 0.0 % 0.0 % Actuarial assumptions used to determine costs and benefit obligations related to our Canadian postretirement plan are as follows: December 31, 2017 2016 2015 Discount rates N/A 3.00 % 3.00 % Current medical cost trend rate N/A N/A 5.71 % Ultimate medical cost trend rate N/A N/A 5 % Year trend rate declines to ultimate N/A N/A 2017 The Company’s discount rates are determined by considering current yield curves representing high quality, long-term fixed income instruments. We set our discount rate for the U.S. plan based on a review of the Citigroup Pension Discount Curve and the duration of expected payments in the plan. We set our discount rate for the Canadian plan based upon similar benchmarks in Canada. The following benefit payments which reflect expected future service, as appropriate, are expected to be paid (in thousands): 2018 $ 440 2019 42 2020 38 2021 33 2022 29 Years 2023 – 2027 91 A one-percentage-point change in assumed health care cost trend rates would not have a material impact on our plans for 2018. |
Other Non-Operating Income (Exp
Other Non-Operating Income (Expense), Net | 12 Months Ended |
Dec. 31, 2017 | |
Other Non-Operating Income (Expense), Net [Abstract] | |
Other Non-Operating Income (Expense), Net | 15. Other Non-Operating Income (Expense), Net The components of other non-operating income (expense), net are as follows: Year Ended December 31, 2017 2016 2015 (In thousands) Interest and dividend income $ 91 $ 153 $ 151 Equity income (loss) from joint ventures (1) (602 ) 2,029 976 Gain (loss) on foreign exchange 950 (276 ) (719 ) Write-off of deferred financing costs — — (773 ) Other non-operating income, net 158 153 145 Total other non-operating income (expense), net $ 597 $ 2,059 $ (220 ) (1) Year ended December 31, 2017 includes a noncash impairment charge of approximately $1.8 million related to our minority interest investment in Orange Electronic Co., Ltd. (See Note 8 for additional information). |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Taxes [Abstract] | |
Income Taxes | 16. Income Taxes In December 2017, the U.S. enacted the Tax Cuts and Jobs Act (the “Act”), which included a broad range of tax reform affecting businesses, including the reduction of the federal corporate tax rate from 35% to 21%, changes in the deductibility of certain business expenses, and the manner in which international operations are taxed in the U.S. Although the majority of the changes resulting from the Act are effective beginning in 2018, U.S. GAAP requires that certain impacts of the Act be recognized in the income tax provision in the period of enactment. In connection with the enactment of the Act, our income tax provision for the fourth quarter of 2017 included an increase of $17.5 million, reflecting an increase of $16.1 million for the remeasurement of our net deferred tax assets and an increase in tax of $1.4 million due to the deemed repatriation of earnings of our foreign subsidiaries. As related to the deemed repatriation of earnings of foreign subsidiaries, the Act includes a mandatory one-time tax on accumulated earnings of foreign subsidiaries. As a result, all previously unremitted earnings for which no U.S. deferred tax liability had been accrued are now subject to U.S. tax. In accordance with the guidelines provided in the Act, we have aggregated the estimated untaxed foreign earnings and profits, and utilized participating exemption deductions and available foreign tax credits in deriving the $1.4 million repatriation tax, which will be payable currently. Notwithstanding the U.S. taxation of these amounts, we intend to continue to invest most or all of these earnings indefinitely outside of the U.S., and do not expect to incur any significant additional taxes related to such amounts. Although we believe that the impact of the Act has been properly reflected in the fourth quarter of 2017, there may be further adjustments in the coming quarters as the relevant authorities provide further guidance on the impacts of the Act . The income tax provision (benefit) consists of the following (in thousands): Year Ended December 31, 2017 2016 2015 Current: Domestic $ 30,742 $ 33,156 $ 22,943 Foreign 3,139 3,628 4,324 Total current 33,881 36,784 27,267 Deferred: Domestic 18,833 (387 ) (1,210 ) Foreign 98 (239 ) (74 ) Total deferred 18,931 (626 ) (1,284 ) Total income tax provision $ 52,812 $ 36,158 $ 25,983 Reconciliations between taxes at the U.S. Federal income tax rate and taxes at our effective income tax rate on earnings from continuing operations before income taxes are as follows (in thousands): Year Ended December 31, 2017 2016 2015 U.S. Federal income tax rate of 35% $ 33,755 $ 34,500 $ 25,936 Increase (decrease) in tax rate resulting from: State and local income taxes, net of federal income tax benefit 3,138 2,944 1,857 Income tax (tax benefits) attributable to foreign income (149 ) (887 ) (1,705 ) Other non-deductible items, net (1,319 ) (464 ) (192 ) Impact of Tax Cuts and Jobs Act 17,515 — — Change in valuation allowance (128 ) 65 87 Provision for income taxes $ 52,812 $ 36,158 $ 25,983 The following is a summary of the components of the net deferred tax assets and liabilities recognized in the accompanying consolidated balance sheets (in thousands): December 31, 2017 2016 Deferred tax assets: Inventories $ 11,498 $ 18,323 Allowance for customer returns 8,678 15,092 Postretirement benefits 170 607 Allowance for doubtful accounts 1,181 1,589 Accrued salaries and benefits 8,500 11,482 Capital loss 154 234 Tax credit carryforwards 272 420 Deferred gain on building sale 55 489 Accrued asbestos liabilities 8,886 12,638 39,394 60,874 Valuation allowance (377 ) (505 ) Total deferred tax assets 39,017 60,369 Deferred tax liabilities: Depreciation 5,495 7,410 Other 1,102 1,832 Total deferred tax liabilities 6,597 9,242 Net deferred tax assets $ 32,420 $ 51,127 In assessing the realizability of the deferred tax assets, we consider whether it is more likely than not that some portion or the entire deferred tax asset will be realized. Ultimately, the realization of the deferred tax asset is dependent upon the generation of sufficient taxable income in those periods in which temporary differences become deductible and/or net operating loss carryforwards can be utilized. We consider the level of historical taxable income, scheduled reversal of temporary differences, carryback and carryforward periods, tax planning strategies and projected future taxable income in determining whether a valuation allowance is warranted. We also consider cumulative losses in recent years as well as the impact of one-time events in assessing our pre-tax earnings. Assumptions regarding future taxable income require significant judgment. Our assumptions are consistent with estimates and plans used to manage our business. The valuation allowance of $0.4 million as of December 31, 2017 is intended to provide for uncertainty regarding the ultimate realization of our U.S. foreign tax credit carryovers and foreign net operating loss carryovers. Based on these considerations, we believe it is more likely than not that we would realize the benefit of the net deferred tax asset of $32.4 million as of December 31, 2017, which is net of the remaining valuation allowance. At December 31, 2017, we have foreign tax credit carryforwards of approximately $0.3 million that will expire in varying amounts by 2020. In accordance with generally accepted accounting practices, we recognize in our financial statements only those tax positions that meet the more-likely-than-not recognition threshold. We establish tax reserves for uncertain tax positions that do not meet this threshold. During the years ended December 31, 2017, 2016 and 2015 we did not establish a liability for uncertain tax provisions. We are subject to taxation in the U.S. and various state, local and foreign jurisdictions. As of December 31, 2017, the Company is no longer subject to U.S. Federal tax examinations for years before 2014. We remain subject to examination by state and local tax authorities for tax years 2013 through 2016. Foreign jurisdictions have statutes of limitations generally ranging from 2 to 6 years. Years still open to examination by foreign tax authorities in major jurisdictions include Canada (2013 onward), Hong Kong (2012 onward), Mexico (2013 onward) and Poland (2012 onward). We do not presently anticipate that our unrecognized tax benefits will significantly increase or decrease over the next 12 months; however, actual developments in this area could differ from those currently expected. |
Industry Segment and Geographic
Industry Segment and Geographic Data | 12 Months Ended |
Dec. 31, 2017 | |
Industry Segment and Geographic Data [Abstract] | |
Industry Segment and Geographic Data | 17. Industry Segment and Geographic Data We have two major reportable operating segments, each of which focuses on a specific line of replacement parts. Our Engine Management Segment manufactures and remanufactures ignition and emission parts, ignition wires, battery cables, fuel system parts and sensors for vehicle systems. Our Temperature Control Segment manufactures and remanufactures air conditioning compressors, air conditioning and heating parts, engine cooling system parts, power window accessories and windshield washer system parts. The accounting policies of each segment are the same as those described in the summary of significant accounting policies (see Note 1). The following tables contain financial information for each reportable segment (in thousands): Year Ended December 31, 2017 2016 2015 Net sales (a): Engine Management $ 829,413 $ 765,539 $ 698,021 Temperature Control 279,127 283,740 264,478 Other 7,603 9,203 9,476 Total net sales $ 1,116,143 $ 1,058,482 $ 971,975 Intersegment sales (a) Engine Management $ 24,995 $ 22,268 $ 20,178 Temperature Control 7,334 7,293 6,542 Other (32,329 ) (29,561 ) (26,720 ) Total intersegment sales $ — $ — $ — Product Line Net Sales (a) Engine Management Ignition, Emission and Fuel System Parts $ 657,287 $ 616,523 $ 598,161 Wire and Cable 172,126 149,016 99,860 Total Engine Management 829,413 765,539 698,021 Temperature Control Compressors 148,377 148,623 127,861 Other Climate Control Parts 130,750 135,117 136,617 Total Temperature Control 279,127 283,740 264,478 All Other 7,603 9,203 9,476 Total Net Sales $ 1,116,143 $ 1,058,482 $ 971,975 Depreciation and Amortization: Engine Management $ 17,981 $ 15,008 $ 12,256 Temperature Control 4,373 4,287 4,329 Other 1,562 1,162 1,052 Total depreciation and amortization $ 23,916 $ 20,457 $ 17,637 Operating income (loss) Engine Management $ 97,403 $ 101,529 $ 88,007 Temperature Control 19,609 17,563 6,382 Other (18,838 ) (21,025 ) (18,529 ) Total operating income $ 98,174 $ 98,067 $ 75,860 Investment in equity affiliates: Engine Management $ 4,162 $ 6,221 $ 6,430 Temperature Control 27,022 13,703 14,192 Other — — — Total investment in equity affiliates $ 31,184 $ 19,924 $ 20,622 Capital expenditures Engine Management $ 17,750 $ 14,202 $ 13,038 Temperature Control 5,151 3,652 3,027 Other 1,541 3,067 1,982 Total capital expenditures $ 24,442 $ 20,921 $ 18,047 Total assets Engine Management $ 527,200 $ 506,625 $ 413,102 Temperature Control 177,006 171,136 177,201 Other 83,361 90,936 90,761 Total assets $ 787,567 $ 768,697 $ 681,064 a) Segment and product line net sales include intersegment sales in our Engine Management and Temperature Control segments. Other consists of items pertaining to our corporate headquarters function, as well as our Canadian business unit that does not meet the criteria of a reportable operating segment. Reconciliation of segment operating income to net earnings: Year Ended December 31, 2017 2016 2015 (In thousands) Operating income $ 98,174 $ 98,067 $ 75,860 Other non-operating income (expense) 597 2,059 (220 ) Interest expense 2,329 1,556 1,537 Earnings from continuing operations before taxes 96,442 98,570 74,103 Income tax expense 52,812 36,158 25,983 Earnings from continuing operations 43,630 62,412 48,120 Discontinued operations, net of tax (5,654 ) (1,982 ) (2,102 ) Net earnings $ 37,976 $ 60,430 $ 46,018 Year Ended December 31, 2017 2016 2015 Revenues (In thousands) United States $ 996,433 $ 952,019 $ 881,206 Canada 56,575 53,324 48,072 Mexico 24,521 24,429 14,707 Europe 14,088 14,703 16,305 Other foreign 24,526 14,007 11,685 Total revenues $ 1,116,143 $ 1,058,482 $ 971,975 December 31, 2017 2016 2015 Long-lived assets (In thousands) United States $ 202,875 $ 204,592 $ 155,438 Canada 2,017 1,344 1,190 Mexico 4,449 3,877 1,012 Europe 18,530 13,612 12,324 Other foreign 31,185 19,924 20,622 Total long-lived assets $ 259,056 $ 243,349 $ 190,586 Revenues are attributed to countries based upon the location of the customer. Long-lived assets are attributed to countries based upon the location of the assets. Our five largest individual customers accounted for approximately 70% of our consolidated net sales in 2017 and 2016, and approximately 68% of our consolidated net sales in 2015. During 2017, O’Reilly Automotive, Inc., Advance Auto Parts, Inc., NAPA Auto Parts, and AutoZone, Inc. accounted for 21%, 17%, 16% and 10% of our consolidated net sales, respectively. Net sales from each of the customers were reported in both our Engine Management and Temperature Control Segments. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value of Financial Instruments [Abstract] | |
Fair Value of Financial Instruments | 18. Fair Value of Financial Instruments The carrying value of our financial instruments consisting of cash and cash equivalents, deferred compensation, and short term borrowings approximate their fair value. In each instance, fair value is determined after considering Level 1 inputs under the three-level fair value hierarchy. For fair value purposes, the carrying value of cash and cash equivalents approximates fair value due to the short maturity of those investments. The fair value of the assets held by the deferred compensation plan are based on the quoted market prices of the underlying funds which are held in registered investment companies. The carrying value of our revolving credit facilities, classified as short term borrowings, equals fair market value because the interest rate reflects current market rates. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | 19. Commitments and Contingencies Total rent expense for the three years ended December 31, 2017 was as follows (in thousands): Total Real Estate Other 2017 $ 11,954 $ 8,983 $ 2,971 2016 10,171 7,550 2,621 2015 9,756 7,218 2,538 At December 31, 2017, we are obligated to make minimum rental payments through 2024, under operating leases, which are as follows (in thousands): 2018 $ 9,485 2019 8,078 2020 6,990 2021 6,355 2022 5,364 Thereafter 3,932 Total $ 40,204 Warranties We generally warrant our products against certain manufacturing and other defects. These product warranties are provided for specific periods of time depending on the nature of the product. As of December 31, 2017 and 2016, we have accrued $20.9 million and $24.1 million, respectively, for estimated product warranty claims included in accrued customer returns. The accrued product warranty costs are based primarily on historical experience of actual warranty claims. Warranty expense for each of the years 2017, 2016 and 2015 were $94.4 million, $99.1 million and $94.6 million, respectively. T December 31, 2017 2016 (In thousands) Balance, beginning of period $ 24,072 $ 23,395 Liabilities accrued for current year sales 94,367 99,092 Settlements of warranty claims (97,510 ) (98,415 ) Balance, end of period $ 20,929 $ 24,072 Letters of Credit At December 31, 2017, we had outstanding letters of credit with certain vendors aggregating approximately $5.3 million. These letters of credit are being maintained as security for reimbursements to insurance companies and as security to the landlord of our administrative offices in Long Island City, New York. The contract amount of the letters of credit is a reasonable estimate of their value as the value for each is fixed over the life of the commitment. Change of Control Arrangements We entered into a change in control arrangement with one key officer. In the event of a change of control (as defined in the agreement), the executive will receive severance payments and certain other benefits as provided in his agreement. Asbestos In 1986, we acquired a brake business, which we subsequently sold in March 1998 and which is accounted for as a discontinued operation. When we originally acquired this brake business, we assumed future liabilities relating to any alleged exposure to asbestos-containing products manufactured by the seller of the acquired brake business. In accordance with the related purchase agreement, we agreed to assume the liabilities for all new claims filed on or after September 2001. Our ultimate exposure will depend upon the number of claims filed against us on or after September 2001 and the amounts paid for indemnity and defense thereof. At December 31, 2017, approximately 1,530 cases were outstanding for which we may be responsible for any related liabilities. Since inception in September 2001 through December 31, 2017, the amounts paid for settled claims are approximately $23.8 million. In evaluating our potential asbestos-related liability, we have considered various factors including, among other things, an actuarial study of the asbestos related liabilities performed by an independent actuarial firm, our settlement amounts and whether there are any co-defendants, the jurisdiction in which lawsuits are filed, and the status and results of settlement discussions. As is our accounting policy, we consider the advice of actuarial consultants with experience in assessing asbestos-related liabilities to estimate our potential claim liability. The methodology used to project asbestos-related liabilities and costs in our actuarial study considered: (1) historical data available from publicly available studies; (2) an analysis of our recent claims history to estimate likely filing rates into the future; (3) an analysis of our currently pending claims; and (4) an analysis of our settlements to date in order to develop average settlement values. The most recent actuarial study was performed as of August 31, 2017. The updated study has estimated an undiscounted liability for settlement payments, excluding legal costs and any potential recovery from insurance carriers, ranging from $35.2 million to $54 million for the period through 2060. The change from the prior year study was a $4.2 million increase for the low end of the range and a $6.3 million increase for the high end of the range. The increase in the estimated undiscounted liability from the prior year study at both the low end and high end of the range reflects our actual experience over the prior twelve months, our historical data and certain assumptions with respect to events that may occur in the future. Based on the information contained in the actuarial study and all other available information considered by us, we have concluded that no amount within the range of settlement payments was more likely than any other and, therefore, in assessing our asbestos liability we compare the low end of the range to our recorded liability to determine if an adjustment is required. Based upon the results of the August 31, 2017 actuarial study, in September 2017 we increased our asbestos liability to $35.2 million, the low end of the range, and recorded an incremental pre-tax provision of $6 million in earnings (loss) from discontinued operations in the accompanying statement of operations. Future legal costs, which are expensed as incurred and reported in earnings (loss) from discontinued operations in the accompanying statement of operations, are estimated, according to the updated study, to range from $44.3 million to $79.6 million for the period through 2060. We plan to perform an annual actuarial evaluation during the third quarter of each year for the foreseeable future. Given the uncertainties associated with projecting such matters into the future and other factors outside our control, we can give no assurance that additional provisions will not be required. We will continue to monitor the circumstances surrounding these potential liabilities in determining whether additional provisions may be necessary. At the present time, however, we do not believe that any additional provisions would be reasonably likely to have a material adverse effect on our liquidity or consolidated financial position. Other Litigation We are currently involved in various other legal claims and legal proceedings (some of which may involve substantial amounts), including claims related to commercial disputes, product liability, employment, and environmental. Although these legal claims and legal proceedings are subject to inherent uncertainties, based on our understanding and evaluation of the relevant facts and circumstances, we believe that the ultimate outcome of these matters will not, either individually or in the aggregate, have a material adverse effect on our . We may at any time determine that settling any of these matters is in our best interests, which settlement may include substantial payments. |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Data (Unaudited) [Abstract] | |
Quarterly Financial Data (Unaudited) | 20. Quarterly Financial Data (Unaudited) 2017 Quarter Ended Dec. 31 Sept. 30 June 30 Mar. 31 (In thousands, except per share amounts) Net sales $ 239,978 $ 281,058 $ 312,729 $ 282,378 Gross profit 69,345 82,535 90,666 84,110 Earnings (loss) from continuing operations (8,106 ) 17,108 18,261 16,367 Loss from discontinued operations, net of taxes (541 ) (3,983 ) (497 ) (633 ) Net earnings (loss) $ (8,647 ) $ 13,125 $ 17,764 $ 15,734 Net earnings (loss) from continuing operations per common share: Basic $ (0.36 ) $ 0.75 $ 0.80 $ 0.72 Diluted $ (0.36 ) $ 0.74 $ 0.78 $ 0.70 Net earnings (loss) per common share: Basic $ (0.38 ) $ 0.58 $ 0.78 $ 0.69 Diluted $ (0.38 ) $ 0.57 $ 0.76 $ 0.67 2016 Quarter Ended Dec. 31 Sept. 30 June 30 Mar. 31 (In thousands, except per share amounts) Net sales $ 229,799 $ 300,795 $ 288,977 $ 238,911 Gross profit 66,771 95,644 87,076 72,996 Earnings from continuing operations 8,839 21,055 19,862 12,656 Loss from discontinued operations, net of taxes (487 ) (425 ) (618 ) (452 ) Net earnings $ 8,352 $ 20,630 $ 19,244 $ 12,204 Net earnings from continuing operations per common share: Basic $ 0.39 $ 0.93 $ 0.87 $ 0.56 Diluted $ 0.38 $ 0.91 $ 0.86 $ 0.55 Net earnings per common share: Basic $ 0.37 $ 0.91 $ 0.85 $ 0.54 Diluted $ 0.36 $ 0.89 $ 0.84 $ 0.53 |
Schedule II Valuation and Quali
Schedule II Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2017 | |
Schedule II - Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | Schedule II ‑ Valuation and Qualifying Accounts Years ended December 31, 2017, 2016 and 2015 Additions Description Balance at beginning of year Charged to costs and expenses Other Deductions Balance at end of year Year ended December 31, 2017: Allowance for doubtful accounts $ 3,353,000 $ 970,000 $ — $ 499,000 $ 3,824,000 Allowance for discounts 1,072,000 10,664,000 — 10,593,000 1,143,000 $ 4,425,000 $ 11,634,000 $ — $ 11,092,000 $ 4,967,000 Allowance for sales returns $ 40,176,000 $ 137,416,000 $ — $ 141,676,000 $ 35,916,000 Year ended December 31, 2016: Allowance for doubtful accounts $ 3,201,000 $ 949,000 $ — $ 797,000 $ 3,353,000 Allowance for discounts 1,045,000 10,039,000 — 10,012,000 1,072,000 $ 4,246,000 $ 10,988,000 $ — $ 10,809,000 $ 4,425,000 Allowance for sales returns $ 38,812,000 $ 138,407,000 $ — $ 137,043,000 $ 40,176,000 Year ended December 31, 2015: Allowance for doubtful accounts $ 4,894,000 $ 3,371,000 (1) $ — $ 5,064,000 $ 3,201,000 Allowance for discounts 1,475,000 9,872,000 — 10,302,000 1,045,000 $ 6,369,000 $ 13,243,000 $ — $ 15,366,000 $ 4,246,000 Allowance for sales returns $ 30,621,000 $ 133,355,000 $ — $ 125,164,000 $ 38,812,000 (1) Includes a net $3,514,000 charge relating to one of our customers that filed a petition for bankruptcy in January 2016. |
Summary of Significant Accoun31
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Summary of Significant Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation Standard Motor Products, Inc. and subsidiaries (referred to hereinafter in these notes to the consolidated financial statements as “we,” “us,” “our” or the “Company”) is engaged in the manufacture and distribution of replacement parts for motor vehicles in the automotive aftermarket industry with a complementary focus on heavy duty, industrial equipment and the original equipment service market. The consolidated financial statements include our accounts and all domestic and international companies in which we have more than a 50% equity ownership. Our investments in unconsolidated affiliates are accounted for on the equity method, as we do not have a controlling financial interest but have the ability to exercise significant influence. All significant inter-company items have been eliminated. |
Use of Estimates | Use of Estimates In conformity with generally accepted accounting principles, we have made a number of estimates and assumptions relating to the reporting of assets, liabilities, revenues and expenses, and the disclosure of contingent assets and liabilities to prepare these consolidated financial statements. Some of the more significant estimates include allowances for doubtful accounts, cash discounts, valuation of inventory, valuation of long-lived assets, goodwill and other intangible assets, depreciation and amortization of long-lived assets, product liability exposures, other postretirement benefits, asbestos, environmental and litigation matters, valuation of deferred tax assets, share based compensation and sales returns and other allowances. We can give no assurances that actual results will not differ from those estimates. Although we do not believe that there is a reasonable likelihood that there will be a material change in the future estimate or in the assumptions that we use in calculating the estimate, unforeseen changes in the industry, or business could materially impact the estimate and may have a material adverse effect on our business, financial condition and results of operations. |
Reclassification | Reclassification Certain prior period amounts in the accompanying consolidated financial statements and related notes have been reclassified to conform to the 2017 presentation. |
Cash and Cash Equivalents | Cash and Cash Equivalents We consider all highly liquid investments purchased with a maturity of three months or less to be cash equivalents. |
Allowance for Doubtful Accounts and Cash Discounts | Allowance for Doubtful Accounts and Cash Discounts We do not generally require collateral for our trade accounts receivable. Accounts receivable have been reduced by an allowance for amounts that may become uncollectible in the future. These allowances are established based on a combination of write-off history, aging analysis, and specific account evaluations. When a receivable balance is known to be uncollectible, it is written off against the allowance for doubtful accounts. Cash discounts are provided based on an overall average experience rate applied to qualifying accounts receivable balances. |
Inventories | Inventories Inventories are valued at the lower of cost and net realizable value. Cost is determined on the first-in first-out basis. Where appropriate, standard cost systems are utilized for purposes of determining cost; the standards are adjusted as necessary to ensure they approximate actual costs. Estimates of lower of cost and net realizable value of inventory are determined by comparing the actual cost of the product to the estimated selling prices in the ordinary course of business less reasonably predictable costs of completion, disposal and transportation of the inventory. We also evaluate inventories on a regular basis to identify inventory on hand that may be obsolete or in excess of current and future projected market demand. For inventory deemed to be obsolete, we provide a reserve on the full value of the inventory. Inventory that is in excess of current and projected use is reduced by an allowance to a level that approximates our estimate of future demand. Future projected demand requires management judgment and is based upon (a) our review of historical trends and (b) our estimate of projected customer specific buying patterns and trends in the industry and markets in which we do business. Using rolling twelve month historical information, we estimate future demand on a continuous basis. As such, the historical volatility of such estimates has been minimal. We maintain provisions for inventory reserves of $41.5 million and $47.9 million as of December 31, 2017 and 2016, respectively. We utilize cores (used parts) in our remanufacturing processes for air conditioning compressors, diesel injectors, and diesel pumps. The production of air conditioning compressors, diesel injectors, and diesel pumps involves the rebuilding of used cores, which we acquire either in outright purchases from used parts brokers, or from returns pursuant to an exchange program with customers. Under such exchange programs, we reduce our inventory, through a charge to cost of sales, when we sell a finished good compressor, diesel injector, or diesel pump and put back to inventory the used core exchanged at standard cost through a credit to cost of sales when it is actually received from the customer. |
Property, Plant and Equipment | Property, Plant and Equipment These assets are recorded at historical cost and are depreciated using the straight-line method of depreciation over the estimated useful lives as follows: Estimated Life Buildings 25 to 33-1/2 years Building improvements 10 to 25 years Machinery and equipment 5 to 12 years Tools, dies and auxiliary equipment 3 to 8 years Furniture and fixtures 3 to 12 years Leasehold improvements are depreciated over the shorter of the estimated useful life or the term of the lease. Costs related to maintenance and repairs which do not prolong the assets useful lives are expensed as incurred. We assess our property, plant and equipment to be held and used for impairment when indicators are present that the carrying value may not be recoverable. |
Valuation of Long-Lived Assets, Intangible Assets and Goodwill | Valuation of Long-Lived and Intangible Assets and Goodwill At acquisition, we estimate and record the fair value of purchased intangible assets, which primarily consists of customer relationships, trademarks and trade names, patents and non-compete agreements. The fair values of these intangible assets are estimated based on our assessment. Goodwill is the excess of the purchase price over the fair value of identifiable net assets acquired in business combinations. Goodwill and certain other intangible assets having indefinite lives are not amortized to earnings, but instead are subject to periodic testing for impairment. Intangible assets determined to have definite lives are amortized over their remaining useful lives. We assess the impairment of long‑lived assets, identifiable intangibles assets and goodwill whenever events or changes in circumstances indicate that the carrying value may not be recoverable. With respect to goodwill and identifiable intangible assets having indefinite lives, we test for impairment on an annual basis or in interim periods if an event occurs or circumstances change that may indicate the fair value is below its carrying amount. Factors we consider important, which could trigger an impairment review, include the following: (a) significant underperformance relative to expected historical or projected future operating results; (b) significant changes in the manner of our use of the acquired assets or the strategy for our overall business; and (c) significant negative industry or economic trends. We review the fair values using the discounted cash flows method and market multiples. When performing our evaluation of goodwill for impairment, if we conclude qualitatively that it is not more likely than not that the fair value of the reporting unit is less than its carrying amount, then the two-step impairment test is not required. If we are unable to reach this conclusion, then we would perform the two-step impairment test. Initially, the fair value of the reporting unit is compared to its carrying amount. To the extent the carrying amount of a reporting unit exceeds the fair value of the reporting unit; we are required to perform a second step, as this is an indication that the reporting unit goodwill may be impaired. In this step, we compare the implied fair value of the reporting unit goodwill with the carrying amount of the reporting unit goodwill and recognize a charge for impairment to the extent the carrying value exceeds the implied fair value. The implied fair value of goodwill is determined by allocating the fair value of the reporting unit to all of the assets (recognized and unrecognized) and liabilities of the reporting unit in a manner similar to a purchase price allocation. The residual fair value after this allocation is the implied fair value of the reporting unit goodwill. In addition, identifiable intangible assets having indefinite lives are reviewed for impairment on an annual basis using a methodology consistent with that used to evaluate goodwill. Intangible assets having definite lives and other long-lived assets are reviewed for impairment whenever events such as product discontinuance, plant closures, product dispositions or other changes in circumstances indicate that the carrying amount may not be recoverable. In reviewing for impairment, we compare the carrying value of such assets to the estimated undiscounted future cash flows expected from the use of the assets and their eventual disposition. When the estimated undiscounted future cash flows are less than their carrying amount, an impairment loss is recognized equal to the difference between the assets fair value and their carrying value. There are inherent assumptions and estimates used in developing future cash flows requiring our judgment in applying these assumptions and estimates to the analysis of identifiable intangibles and long‑lived asset impairment including projecting revenues, interest rates, tax rates and the cost of capital. Many of the factors used in assessing fair value are outside our control and it is reasonably likely that assumptions and estimates will change in future periods. These changes can result in future impairments. In the event our planning assumptions were modified resulting in impairment to our assets, we would be required to include an expense in our statement of operations, which could materially impact our business, financial condition and results of operations. |
New Customer Acquisition Costs | New Customer Acquisition Costs New customer acquisition costs refer to arrangements pursuant to which we incur change-over costs to induce a new customer to switch from a competitor’s brand. In addition, change-over costs include the costs related to removing the new customer’s inventory and replacing it with our inventory commonly referred to as a stocklift. New customer acquisition costs are recorded as a reduction to revenue when incurred. |
Foreign Currency Translation | Foreign Currency Translation Assets and liabilities of our foreign operations are translated into U.S. dollars at year-end exchange rates. Income statement accounts are translated using the average exchange rates prevailing during the year. The resulting translation adjustments are recorded as a separate component of accumulated other comprehensive income (loss) and remains there until the underlying foreign operation is liquidated or substantially disposed of. Foreign currency transaction gains or losses are recorded in the statement of operations under the caption “other non-operating income (expense), net.” |
Revenue Recognition | Revenue Recognition We derive our revenue primarily from sales of replacement parts for motor vehicles from both our Engine Management and Temperature Control Segments. We recognize revenues when products are shipped and title has been transferred to a customer, the sales price is fixed and determinable, and collection is reasonably assured. For certain of our sales of remanufactured products, we also charge our customers a deposit for the return of a used core component which we can use in our future remanufacturing activities. Such deposit is not recognized as revenue but rather carried as a core liability. The liability is extinguished when a core is actually returned to us. We estimate and record provisions for cash discounts, quantity rebates, sales returns and warranties in the period the sale is recorded, based upon our prior experience and current trends. Significant management judgments and estimates must be made and used in estimating sales returns and allowances relating to revenue recognized in any accounting period. |
Selling, General and Administration Expenses | Selling, General and Administration Expenses Selling, general and administration expenses include shipping costs and advertising, which are expensed as incurred. Shipping and handling charges, as well as freight to customers, are included in distribution expenses as part of selling, general and administration expenses. |
Deferred Financing Costs | Deferred Financing Costs Deferred financing costs represent costs incurred in conjunction with our debt financing activities. Deferred financing costs related to our revolving credit facility are capitalized and amortized over the life of the related financing arrangement. If the debt is retired early, the related unamortized deferred financing costs are written off in the period the debt is retired and are recorded in the statement of operations under the caption other non-operating income (expense), net. |
Post-Retirement Medical Benefits | Post-Retirement Medical Benefits The determination of postretirement plan obligations and their associated expenses requires the use of actuarial valuations to estimate participant plan benefits employees earn while working as well as the present value of those benefits. Inherent in these valuations are financial assumptions including the eligibility criteria of participants and discount rates at which liabilities can be settled. Management reviews these assumptions annually with its actuarial advisors. The actuarial assumptions used may differ materially from actual results due to changing market and economic conditions, or longer or shorter life spans of participants. We recognize the underfunded or overfunded status of a postretirement plan as an asset or liability and recognize changes in the funded status in the year in which the changes occur through accumulated other comprehensive income, which is a component of stockholders’ equity. |
Share-Based Compensation | Share-Based Compensation We measure and recognize compensation expense for all share-based payment awards made to employees and directors based on estimated fair values on the grant date. The value of the portion of the award that is ultimately expected to vest is recognized as an expense on a straight-line basis over the requisite service periods in our consolidated statements of operations. Forfeitures are estimated at the time of grant based on historical trends in order to estimate the amount of share-based awards that will ultimately vest. We monitor actual forfeitures for any subsequent adjustment to forfeiture rates. |
Accounting for Income Taxes | Accounting for Income Taxes Income taxes are calculated using the asset and liability method. Deferred tax assets and liabilities are determined based on the estimated future tax effects of temporary differences between the financial statement carrying amounts and the tax bases of assets and liabilities, as measured by the current enacted tax rates. We maintain valuation allowances when it is more likely than not that all or a portion of a deferred asset will not be realized. The valuation allowance is intended to provide for the uncertainty regarding the ultimate utilization of our U.S. foreign tax credit carryovers and foreign net operating loss carryovers. In determining whether a valuation allowance is warranted, we consider all positive and negative evidence and all sources of taxable income such as prior earnings history, expected future earnings, carryback and carryforward periods and tax strategies to estimate if sufficient future taxable income will be generated to realize the deferred tax asset. The assessment of the adequacy of our valuation allowance is based on our estimates of taxable income by jurisdiction in which we operate and the period over which our deferred tax assets will be recoverable. In the event that actual results differ from these estimates, or we adjust these estimates in future periods for current trends or expected changes in our estimating assumptions, we may need to modify the level of valuation allowance which could materially impact our business, financial condition and results of operations. The valuation allowance of $0.4 million as of December 31, 2017 is intended to provide for the uncertainty regarding the ultimate realization of our U.S. foreign tax credit carryovers and foreign net operating loss carryovers. Based on these considerations, we believe it is more likely than not that we will realize the benefit of the net deferred tax asset of $32.4 million as of December 31, 2017, which is net of the remaining valuation allowance. Tax benefits are recognized for an uncertain tax position when, in management’s judgment, it is more likely than not that the position will be sustained upon examination by a taxing authority. For a tax position that meets the more-likely-than-not recognition threshold, the tax benefit is measured as the largest amount that is judged to have a greater than 50% likelihood of being realized upon ultimate settlement with a taxing authority. The liability associated with unrecognized tax benefits is adjusted periodically due to changing circumstances and when new information becomes available. Such adjustments are recognized entirely in the period in which they are identified. The effective tax rate includes the net impact of changes in the liability for uncertain tax positions. As of December 31, 2017, we do not believe there is a need to establish a liability for uncertain tax positions. In December 2017, the U.S. enacted the Tax Cuts and Jobs Act (the “Act”), which included a broad range of tax reform affecting businesses, including the reduction of the federal corporate tax rate from 35% to 21%, changes in the deductibility of certain business expenses, and the manner in which international operations are taxed in the U.S. For a discussion of the impact of the Act on our consolidated financial statements, see Note 16, “Income Taxes,” of the notes to our consolidated financial statements. |
Net Earnings per Common Share | Net Earnings per Common Share We present two calculations of earnings per common share. “Basic” earnings per common share equals net income divided by weighted average common shares outstanding during the period. “Diluted” earnings per common share equals net income divided by the sum of weighted average common shares outstanding during the period plus potentially dilutive common shares. Potentially dilutive common shares that are anti-dilutive are excluded from net earnings per common share. The following is a reconciliation of the shares used in calculating basic and dilutive net earnings per common share. 2017 2016 2015 (In thousands) Weighted average common shares outstanding – Basic 22,726 22,723 22,812 Plus incremental shares from assumed conversions: Dilutive effect of restricted shares and performance shares 472 360 330 Weighted average common shares outstanding – Diluted 23,198 23,083 23,142 The average shares listed below were not included in the computation of diluted earnings per share because to do so would have been anti-dilutive for the periods presented or because they were excluded under the treasury method. 2017 2016 2015 (In thousands) Restricted and performance shares 248 304 307 |
Environmental Reserves | Environmental Reserves We are subject to various U.S. Federal and state and local environmental laws and regulations and are involved in certain environmental remediation efforts. We estimate and accrue our liabilities resulting from such matters based upon a variety of factors including the assessments of environmental engineers and consultants who provide estimates of potential liabilities and remediation costs. Such estimates are not discounted to reflect the time value of money due to the uncertainty in estimating the timing of the expenditures, which may extend over several years. Potential recoveries from insurers or other third parties of environmental remediation liabilities are recognized independently from the recorded liability, and any asset related to the recovery will be recognized only when the realization of the claim for recovery is deemed probable. |
Asbestos Litigation | Asbestos Litigation In evaluating our potential asbestos-related liability, we use an actuarial study that is prepared by a leading actuarial firm with expertise in assessing asbestos-related liabilities. We evaluate the estimate of the range of undiscounted liability to determine which amount to accrue. Based on the information contained in the actuarial study and all other available information considered by us, we have concluded that no amount within the range was more likely than any other and, therefore, in assessing our asbestos liability we compare the low end of the range to our recorded liability to determine if an adjustment is required. Legal costs are expensed as incurred. |
Loss Contingencies | Loss Contingencies We have loss contingencies, for such matters as legal claims and legal proceedings. Establishing loss reserves for these matters requires estimates, judgment of risk exposure and ultimate liability. We record provisions when the liability is considered probable and reasonably estimable. Significant judgment is required for both the determination of probability and the determination as to whether an exposure can be reasonably estimated. We maintain an ongoing monitoring and identification process to assess how the activities are progressing against the accrued estimated costs. As additional information becomes available, we reassess our potential liability related to these matters. Adjustments to the liabilities are recorded in the statement of operations in the period when additional information becomes available. Such revisions of the potential liabilities could have a material adverse effect on our business, financial condition or results of operations. |
Product Warranty and Overstock Returns | Product Warranty and Overstock Returns Many of our products carry a warranty ranging from a 90-day limited warranty to a lifetime limited warranty, which generally covers defects in materials or workmanship and failure to meet industry published specifications and/or the result of installation error. In addition to warranty returns, we also permit our customers to return new, undamaged products to us within customer-specific limits (which are generally limited to a specified percentage of their annual purchases from us) in the event that they have overstocked their inventories. We accrue for product warranties and overstock returns as a percentage of sales at the time products are sold, based upon estimates established using historical information on the nature, frequency and average cost of claims. Revision to the accrual is made when necessary, based upon changes in these factors. We regularly study trends of such claims. |
Trade Receivables | Trade Receivables In compliance with accounting standards, sales of accounts receivable are reflected as a reduction of accounts receivable in the consolidated balance sheet at the time of sale and any related expense is included in selling, general and administrative expenses in our consolidated statements of operations. |
Concentrations of Credit Risk | Concentrations of Credit Risk Financial instruments that potentially subject us to significant concentrations of credit risk consist principally of cash investments and accounts receivable. We place our cash investments with high quality financial institutions and limit the amount of credit exposure to any one institution. Although we are directly affected by developments in the vehicle parts industry, management does not believe significant credit risk exists. With respect to accounts receivable, such receivables are primarily from warehouse distributors and major retailers in the automotive aftermarket industry located in the U.S. We perform ongoing credit evaluations of our customers’ financial conditions. Our five largest individual customers accounted for approximately 70% of our consolidated net sales in 2017 and 2016, and approximately 68% of our consolidated net sales in 2015. During 2017, O’Reilly Automotive, Inc., Advance Auto Parts, Inc., NAPA Auto Parts, and AutoZone, Inc. accounted for 21%, 17%, 16% and 10% of our consolidated net sales, respectively. Net sales from each of the customers were reported in both our Engine Management and Temperature Control Segments. The loss of one or more of these customers or, a significant reduction in purchases of our products from any one of them, could have a materially adverse impact on our business, financial condition and results of operations. Substantially all of the cash and cash equivalents, including foreign cash balances, at December 31, 2017 and 2016 were uninsured. Foreign cash balances at December 31, 2017 and 2016 were $13.1 million and $16.5 million, respectively. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements Standards not yet adopted as of December 31, 2017 Revenue from Contracts with Customers In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers Revenue from Contracts with Customers – Deferral of the Effective Date Effective January 1, 2018, we will adopt the requirements of Topic 606 using the modified retrospective method. Upon adoption, we will recognize the cumulative effect of initially applying the new revenue standard as an adjustment to the opening balance of retained earnings. Using the modified retrospective method of adoption, the comparative information for periods prior to 2018 will not be restated and instead will continue to be reported under the accounting standards in effect for those periods. We anticipate that the adoption of the new standard will not result in a material difference between the recognition of revenue under Topic 606 and prior accounting standards. For the majority of our net sales, revenue will continue to be recognized when products are shipped from our distribution facilities, or when received by our customers, depending upon the terms of the contract. Under the new revenue standard, (1) the return of cores from customers used in our manufacturing processes for air conditioning compressors, diesel injectors, and diesel pumps will be estimated and recorded to inventory at the time of sale instead of upon receipt of the returned cores, and (2) overstock returns will be recorded gross of expected recoveries. Adoption of the new standard will result in an increase in inventory and accrued customer returns, and offsetting changes in net sales and cost of sales, with no material change to our net income on an ongoing basis. In addition, to meet the disaggregation disclosure requirements under Topic 606, we anticipate our disclosure of revenue disaggregation will be by major product group, geographic area and major sales channels. The following table provides a brief description of the additional recent accounting pronouncements that could have an impact on our financial statements: Standard Description Date of adoption Effects on the financial statements or other significant matters Standards that are not yet adopted as of December 31, 2017 ASU 2016-02, Leases This standard outlines the need to recognize a right-of-use asset and a lease liability for virtually all leases (other than leases that meet the definition of a short-term lease). For income statement purposes, the FASB retained the dual model, requiring leases to be classified as either operating or financing. Operating leases will result in straight-line expense while finance leases will result in a front-loaded expense pattern. January 1, 2019, with early adoption permitted The new standard must be adopted utilizing a modified retrospective transition, and provides for certain expedients. The new standard will require that we recognize all of our leases, including our current operating leases, on the balance sheet. To date, we have taken an inventory of all of our operating leases, which consist primarily of real estate and auto leases, and are currently evaluating the appropriate discount rates to use in calculating the right to use asset. We will be continuously assessing the impact of the new standard and the impact on our systems and processes through January 1, 2019, our planned date of adoption. ASU 2016-15, Statement of Cash Flows This standard is intended to reduce diversity in practice and to provide guidance as to how certain cash receipts and cash payments are presented and classified in the statement of cash flows. January 1, 2018, with early adoption permitted The new standard requires application using a retrospective transition method. We do not anticipate that the adoption of this standard will have a material effect on our consolidated financial statements. ASU Simplifying the Test for Goodwill Impairment This standard is intended to simplify the accounting for goodwill impairment. ASU 2017-04 removes Step 2 of the test, which requires a hypothetical purchase price allocation. A goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. January 1, 2020, with early adoption permitted The new standard should be applied prospectively. We will consider the new standard when performing our annual impairment test and evaluate when we will adopt the new standard. ASU 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost This standard requires employers that present operating income in their consolidated statement of operations to include only the service cost component of net periodic pension cost and net periodic postretirement benefit cost in operating expenses (together with other employee compensation costs). The other components of net benefit cost, including amortization of prior service cost/credit, and settlement and curtailment effects, are to be included in other non-operating income (expense). The new standard requires retrospective reclassification of the effects of the new standard on the statement of operations. January 1, 2018, with early adopted permitted The new standard will require that we retrospectively reclassify all components of net periodic pension cost and net periodic postretirement benefit cost, other than the service cost component, in our statement of operations from selling, general and administrated expenses, as presently reported, to other non-operating income (expense). Standards that were adopted ASU Balance Sheet Classification of Deferred Taxes This standard requires entities with a classified balance sheet to present all deferred tax assets and liabilities as noncurrent. The new guidance requires entities to offset all deferred tax assets and liabilities (and valuation allowances) for each tax-paying jurisdiction within each tax-paying component. The net deferred tax must be presented as a single noncurrent amount. January 1, 2017 The adoption of the new standard resulted in the reclassification of deferred tax assets previously reported as current deferred tax assets to noncurrent deferred tax assets in our consolidated balance sheets. We adopted the new standard retrospectively, and as such, all prior period current deferred tax assets in our consolidated balance sheets have also been reclassified to noncurrent deferred tax assets for comparative purposes. ASU 2015-11, Simplifying the Measurement of Inventory This standard changes the measurement principle for inventory from the lower of cost or market to lower of cost and net realizable value for entities that measure inventory using first-in, first-out or average cost. In addition, this standard eliminates the requirement for these entities to consider replacement cost or net realizable value less an approximate normal profit margin when measuring inventory. January 1, 2017 The prospective adoption of the new standard did not have a material effect on our consolidated financial statements. ASU 2016-09, Improvements to Employee Share-Based Payment Accounting This standard requires (1) that the tax effects related to share-based payments at settlement (or expiration) be recorded through the tax provision (benefit) in the income statement rather than in equity as permitted under prior guidance under certain circumstances; (2) that all tax-related cash flows resulting from share-based payments be reported as operating activities on the statement of cash flows, a change from the requirement to present windfall tax benefits as an inflow from financing activities and an outflow from operating activities; and (3) that when computing diluted earnings per share, the effect of “windfall” tax benefits be excluded from the hypothetical proceeds used to calculate the repurchase of shares under the treasury stock method. January 1, 2017 We adopted the new standard prospectively. The adoption of the new standard did not have a material effect on our consolidated financial statements for the year ended December 31, 2017. |
Summary of Significant Accoun32
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Summary of Significant Accounting Policies [Abstract] | |
Estimated Useful Lives of Property, Plant and Equipment | These assets are recorded at historical cost and are depreciated using the straight-line method of depreciation over the estimated useful lives as follows: Estimated Life Buildings 25 to 33-1/2 years Building improvements 10 to 25 years Machinery and equipment 5 to 12 years Tools, dies and auxiliary equipment 3 to 8 years Furniture and fixtures 3 to 12 years |
Reconciliation of Shares Used in Calculating Basic and Dilutive Net Earnings per Common Share | The following is a reconciliation of the shares used in calculating basic and dilutive net earnings per common share. 2017 2016 2015 (In thousands) Weighted average common shares outstanding – Basic 22,726 22,723 22,812 Plus incremental shares from assumed conversions: Dilutive effect of restricted shares and performance shares 472 360 330 Weighted average common shares outstanding – Diluted 23,198 23,083 23,142 |
Antidilutive Securities Excluded from Computation of Earnings Per Share | The average shares listed below were not included in the computation of diluted earnings per share because to do so would have been anti-dilutive for the periods presented or because they were excluded under the treasury method. 2017 2016 2015 (In thousands) Restricted and performance shares 248 304 307 |
Business Acquisitions and Inv33
Business Acquisitions and Investments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Business Acquisitions and Investments [Abstract] | |
Allocation of Purchase Price to the Assets Acquired and Liabilities Assumed | The following table presents the allocation of the purchase price to the assets acquired and liabilities assumed, based on their fair values (in thousands): Purchase Price $ 67,451 Assets acquired and liabilities assumed: Receivables $ 3,130 Inventory 12,567 Other current and noncurrent assets (1) 334 Property, plant and equipment, net 2,660 Intangible assets 42,440 Goodwill 12,746 Current liabilities (6,426 ) Net assets acquired $ 67,451 (1) Other current and noncurrent assets includes $0.2 million of cash acquired. |
Restructuring and Integration34
Restructuring and Integration Expense (Income) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring and Integration Expense (Income) | The aggregated liabilities included in “sundry payables and accrued expenses” and “other accrued liabilities” in the consolidated balance sheet relating to the restructuring and integration activities as of and for the years ended December 31, 2017 and 2016, consisted of the following (in thousands): Workforce Reduction Other Exit Costs Total Exit activity liability at December 31, 2015 $ 270 $ 591 $ 861 Restructuring and integration costs: Amounts provided for during 2016 2,934 1,023 3,957 Cash payments (392 ) (1,154 ) (1,546 ) Reclassification to ongoing accrued liabilities (1) (236 ) (460 ) (696 ) Exit activity liability at December 31, 2016 $ 2,576 $ — $ 2,576 Restructuring and integration costs: Amounts provided for during 2017 2,220 3,953 6,173 Cash payments (1,979 ) (3,702 ) (5,681 ) Foreign currency exchange rate changes and other 37 (251 ) (214 ) Exit activity liability at December 31, 2017 $ 2,854 $ — $ 2,854 (1) Applies to liabilities associated with the prior year restructuring and integration programs which relate primarily to employee severance and other retiree benefit enhancements to be paid through 2020 and environmental clean-up costs at our Long Island City, New York location in connection with the closure of our manufacturing operations at the site. These amounts were reclassified out of the restructuring and integration liability and into ongoing accrued liabilities as of December 31, 2016. |
Plant Rationalization Program [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring and Integration Expense (Income) | Activity, by segment, for the year ended December 31, 2017 and 2016 related to our plant rationalization program consisted of the following (in thousands): Engine Management Temperature Control Other Total Exit activity liability at December 31, 2015 $ — $ — $ — $ — Restructuring and integration costs: Amounts provided for during 2016 844 2,361 — 3,205 Cash payments (833 ) (318 ) — (1,151 ) Exit activity liability at December 31, 2016 $ 11 $ 2,043 $ — $ 2,054 Restructuring and integration costs: Amounts provided for during 2017 631 1,774 — 2,405 Cash payments (642 ) (2,341 ) — (2,983 ) Exit activity liability at December 31, 2017 $ — $ 1,476 $ — $ 1,476 |
Orlando Plant Rationalization Program [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring and Integration Expense (Income) | Activity, by segment, for the year ended December 31, 2017 related to our Orlando plant rationalization program consisted of the following (in thousands): Engine Management Temperature Control Other Total Exit activity liability at December 31, 2016 $ — $ — $ — $ — Restructuring and integration costs: Amounts provided for during 2017 1,758 — — 1,758 Cash payments (772 ) — — (772 ) Exit activity liability at December 31, 2017 $ 986 $ — $ — $ 986 |
Wire and Cable Relocation [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring and Integration Expense (Income) | Activity, by segment, for the year ended December 31, 2017 and 2016 related to our wire and cable relocation program consisted of the following (in thousands): Engine Management Temperature Control Other Total Exit activity liability at December 31, 2015 $ — $ — $ — $ — Restructuring and integration costs: Amounts provided for during 2016 714 — — 714 Cash payments (192 ) — — (192 ) Exit activity liability at December 31, 2016 $ 522 $ — $ — $ 522 Restructuring and integration costs: Amounts provided for during 2017 1,759 ) — — 1,759 Cash payments (1,926 ) — — (1,926 ) Foreign currency exchange rate changes 37 — — 37 Exit activity liability at December 31, 2017 $ 392 $ — $ — $ 392 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Inventories [Abstract] | |
Inventories | December 31, 2017 2016 (In thousands) Finished goods $ 209,800 $ 203,700 Work-in-process 7,536 6,823 Raw materials 109,075 101,954 Total inventories $ 326,411 $ 312,477 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | December 31, 2017 2016 (In thousands) Land, buildings and improvements $ 46,930 $ 46,447 Machinery and equipment 132,467 128,650 Tools, dies and auxiliary equipment 45,769 44,683 Furniture and fixtures 28,352 27,482 Leasehold improvements 10,348 8,369 Construction-in-progress 16,318 14,419 Total property, plant and equipment 280,184 270,050 Less accumulated depreciation 191,081 191,551 Total property, plant and equipment, net $ 89,103 $ 78,499 |
Goodwill and Other Intangible37
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Other Intangible Assets [Abstract] | |
Carrying Value of Goodwill by Operating Segment | Changes in the carrying values of goodwill by operating segment during the years ended December 31, 2017 and 2016 are as follows (in thousands): Engine Management Temperature Control Total Balance as of December 31, 2015: Goodwill $ 79,099 $ 14,270 $ 93,369 Accumulated impairment losses (38,488 ) — (38,488 ) $ 40,611 $ 14,270 $ 54,881 Activity in 2016 Acquisition of the North American automotive ignition wire business of General Cable Corporation. $ 12,746 $ — $ 12,746 Foreign currency exchange rate change (396 ) — (396 ) Balance as of December 31, 2016: Goodwill 91,449 14,270 105,719 Accumulated impairment losses (38,488 ) — (38,488 ) $ 52,961 $ 14,270 $ 67,231 Activity in 2017 Foreign currency exchange rate change 182 — 182 Balance as of December 31, 2017: Goodwill 91,631 14,270 105,901 Accumulated impairment losses (38,488 ) — (38,488 ) $ 53,143 $ 14,270 $ 67,413 |
Acquired Identifiable Intangible Assets | Acquired identifiable intangible assets as of December 31, 2017 and 2016 consist of: December 31, 2017 2016 (In thousands) Customer relationships $ 87,290 $ 87,070 Trademarks and trade names 6,800 6,800 Non-compete agreements 3,193 3,189 Patents 723 723 Supply agreements 800 800 Leaseholds 160 160 Total acquired intangible assets 98,966 98,742 Less accumulated amortization (1) (43,853 ) (35,830 ) Net acquired intangible assets $ 55,113 $ 62,912 (1) Applies to all intangible assets, except for related trademarks and trade names totaling $5.2 million, which have indefinite useful lives and, as such, are not being amortized. |
Other Assets (Tables)
Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Other Assets [Abstract] | |
Other Assets | December 31, 2017 2016 (In thousands) Equity in joint ventures $ 31,184 $ 19,924 Deferred compensation 13,612 10,763 Long term receivables — 1,061 Deferred financing costs, net 630 973 Other 853 842 Total other assets, net $ 46,279 $ 33,563 |
Credit Facilities and Long-Te39
Credit Facilities and Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Credit Facilities and Long-Term Debt [Abstract] | |
Summary of Total Debt Outstanding | Total debt outstanding is summarized as follows: December 31, 2017 2016 (In thousands) Revolving credit facilities $ 57,000 $ 54,812 Other (1) 4,778 163 Total debt $ 61,778 $ 54,975 Current maturities of debt $ 61,699 $ 54,855 Long-term debt 79 120 Total debt $ 61,778 $ 54,975 (1) Other includes borrowings under our Polish overdraft facility of Zloty 16.2 million (approximately $4.7 million). |
Scheduled Amortization of Deferred Financing Cost for Future Years | Scheduled amortization for future years, assuming no prepayments of principal is as follows: (In thousands) 2018 $ 343 2019 343 2020 287 Total amortization $ 973 |
Accumulated Other Comprehensi40
Accumulated Other Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Accumulated Other Comprehensive Income [Abstract] | |
Schedule of Changes in Accumulated Other Comprehensive Income | Changes in Accumulated Other Comprehensive Income by Component Foreign Currency Translation Adjustments Unrecognized Postretirement Benefit Costs (Credit) Total (In thousands) Balance at December 31, 2015 $ (5,958 ) $ (516 ) $ (6,474 ) Other comprehensive income before reclassifications (5,294 ) 332 (4,962 ) Amounts reclassified from accumulated other comprehensive income — 408 408 Other comprehensive income, net (5,294 ) 740 (4,554 ) Balance at December 31, 2016 $ (11,252 ) $ 224 $ (11,028 ) Other comprehensive income before reclassifications 7,027 289 7,316 Amounts reclassified from accumulated other comprehensive income — (397 ) (397 ) Other comprehensive income, net 7,027 (108 ) 6,919 Balance at December 31, 2017 $ (4,225 ) $ 116 $ (4,109 ) |
Reclassifications out of Accumulated Other Comprehensive Income | Reclassifications Out of Accumulated Other Comprehensive Income and into the Consolidated Statements of Operations Year Ended December 31, Details About Accumulated Other Comprehensive Income Components 2017 2016 Amortization of postretirement benefit plans: (In thousands) Prior service benefit (1) $ — $ (54 ) Unrecognized (gain) loss (1) (661 ) 763 Total before income tax (661 ) 709 Income tax expense 264 (301 ) Total reclassifications for the period $ (397 ) $ 408 (1) These accumulated other comprehensive income components are included in the computation of net periodic postretirement benefit costs, which are included in selling, general and administrative expenses in our consolidated statements of operations (see Note 14 for additional information). |
Stock-Based Compensation Plans
Stock-Based Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Stock-Based Compensation Plans [Abstract] | |
Restricted and Performance-Based Share Activity | Our restricted and performance-based share activity was as follows for the years ended December 31, 2017 and 2016: Shares Weighted Average Grant Date Fair Value per Share Balance at December 31, 2015 758,550 $ 27.19 Granted 212,500 42.93 Vested (138,427 ) 31.55 Forfeited (9,775 ) 31.79 Balance at December 31, 2016 822,848 30.46 Granted 207,975 42.79 Vested (169,615 ) 31.26 Forfeited (7,250 ) 37.24 Balance at December 31, 2017 853,958 $ 33.25 |
Retirement Benefit Plans (Table
Retirement Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Retirement Benefit Plans [Abstract] | |
Defined Contribution Plan Matching Obligations | Matching obligations, in connection with the plans which are funded in cash and typically contributed to the plans in March of the following year, are as follows (in thousands): U.S. Defined Contribution Year ended December 31, 2017 $ 9,980 2016 8,625 2015 8,445 |
Postretirement Medical Benefi43
Postretirement Medical Benefits (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Postretirement Medical Benefits [Abstract] | |
Components of Net Periodic Benefit Cost for Postretirement Benefit Plans | Net periodic benefit cost related to our plans includes the following components (in thousands): December 31, U.S. postretirement plan: 2017 2016 2015 Service cost $ — $ — $ — Interest cost 8 11 24 Actuarial net (gain) loss (661 ) 809 1,548 Net periodic benefit cost (credit) $ (653 ) $ 820 $ 1,572 Canadian postretirement plan: Service cost $ — $ — $ — Interest cost — 2 3 Amortization of prior service cost — (54 ) (112 ) Actuarial net gain — (46 ) (22 ) Net periodic benefit cost (credit) $ — $ (98 ) $ (131 ) Total net periodic benefit cost (credit) $ (653 ) $ 722 $ 1,441 |
CANADA [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Actuarial Assumptions Used to Determine Costs and Benefit Obligations | Actuarial assumptions used to determine costs and benefit obligations related to our Canadian postretirement plan are as follows: December 31, 2017 2016 2015 Discount rates N/A 3.00 % 3.00 % Current medical cost trend rate N/A N/A 5.71 % Ultimate medical cost trend rate N/A N/A 5 % Year trend rate declines to ultimate N/A N/A 2017 |
Postretirement Benefit Plans [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Funded (Unfunded) Status | The benefit obligation, funded status, and amounts recognized in the consolidated financial statements for our postretirement medical benefit plans as of and for the years ended December 31, 2017 and 2016, were as follows (in thousands): Postretirement Benefit Plans U.S. Plan Canadian Plan 2017 2016 2017 2016 Change in benefit obligation: Benefit obligation at beginning of year $ 1,574 $ 2,928 $ — $ 74 Service cost — — — — Interest cost 8 11 — 2 Benefits paid (429 ) (831 ) — (17 ) Actuarial gain (481 ) (534 ) — (9 ) Translation adjustment & other — — — (50 ) Benefit obligation at end of year $ 672 $ 1,574 $ — $ — (Unfunded) status of the plans $ (672 ) $ (1,574 ) $ — $ — |
Amounts Recognized in Balance Sheet | Postretirement Benefit Plan U.S. Plan 2017 2016 Amounts recognized in the balance sheet: Accrued postretirement benefit liabilities $ 672 $ 1,574 Accumulated other comprehensive (income) loss (pre-tax) related to: Unrecognized net actuarial losses (gains) (194 ) (374 ) Unrecognized prior service cost (credit) — — |
Actuarial Assumptions Used to Determine Costs and Benefit Obligations | Actuarial assumptions used to determine costs and benefit obligations related to our U.S. postretirement plan are as follows: December 31, 2017 2016 2015 Discount rate 0.0 % 0.0 % 0.0 % |
Expected Future Benefit Payments | The following benefit payments which reflect expected future service, as appropriate, are expected to be paid (in thousands): 2018 $ 440 2019 42 2020 38 2021 33 2022 29 Years 2023 – 2027 91 |
Other Non-Operating Income (E44
Other Non-Operating Income (Expense), Net (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Other Non-Operating Income (Expense), Net [Abstract] | |
Components of Other Non-Operating Income | The components of other non-operating income (expense), net are as follows: Year Ended December 31, 2017 2016 2015 (In thousands) Interest and dividend income $ 91 $ 153 $ 151 Equity income (loss) from joint ventures (1) (602 ) 2,029 976 Gain (loss) on foreign exchange 950 (276 ) (719 ) Write-off of deferred financing costs — — (773 ) Other non-operating income, net 158 153 145 Total other non-operating income (expense), net $ 597 $ 2,059 $ (220 ) (1) Year ended December 31, 2017 includes a noncash impairment charge of approximately $1.8 million related to our minority interest investment in Orange Electronic Co., Ltd. (See Note 8 for additional information). |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Taxes [Abstract] | |
Income Tax Provision (Benefit) | The income tax provision (benefit) consists of the following (in thousands): Year Ended December 31, 2017 2016 2015 Current: Domestic $ 30,742 $ 33,156 $ 22,943 Foreign 3,139 3,628 4,324 Total current 33,881 36,784 27,267 Deferred: Domestic 18,833 (387 ) (1,210 ) Foreign 98 (239 ) (74 ) Total deferred 18,931 (626 ) (1,284 ) Total income tax provision $ 52,812 $ 36,158 $ 25,983 |
Effective Income Tax Rate Reconciliation | Reconciliations between taxes at the U.S. Federal income tax rate and taxes at our effective income tax rate on earnings from continuing operations before income taxes are as follows (in thousands): Year Ended December 31, 2017 2016 2015 U.S. Federal income tax rate of 35% $ 33,755 $ 34,500 $ 25,936 Increase (decrease) in tax rate resulting from: State and local income taxes, net of federal income tax benefit 3,138 2,944 1,857 Income tax (tax benefits) attributable to foreign income (149 ) (887 ) (1,705 ) Other non-deductible items, net (1,319 ) (464 ) (192 ) Impact of Tax Cuts and Jobs Act 17,515 — — Change in valuation allowance (128 ) 65 87 Provision for income taxes $ 52,812 $ 36,158 $ 25,983 |
Components of Net Deferred Tax Assets and Liabilities | The following is a summary of the components of the net deferred tax assets and liabilities recognized in the accompanying consolidated balance sheets (in thousands): December 31, 2017 2016 Deferred tax assets: Inventories $ 11,498 $ 18,323 Allowance for customer returns 8,678 15,092 Postretirement benefits 170 607 Allowance for doubtful accounts 1,181 1,589 Accrued salaries and benefits 8,500 11,482 Capital loss 154 234 Tax credit carryforwards 272 420 Deferred gain on building sale 55 489 Accrued asbestos liabilities 8,886 12,638 39,394 60,874 Valuation allowance (377 ) (505 ) Total deferred tax assets 39,017 60,369 Deferred tax liabilities: Depreciation 5,495 7,410 Other 1,102 1,832 Total deferred tax liabilities 6,597 9,242 Net deferred tax assets $ 32,420 $ 51,127 |
Industry Segment and Geograph46
Industry Segment and Geographic Data (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Industry Segment and Geographic Data [Abstract] | |
Sales and Operating Income by Operating Segments | The following tables contain financial information for each reportable segment (in thousands): Year Ended December 31, 2017 2016 2015 Net sales (a): Engine Management $ 829,413 $ 765,539 $ 698,021 Temperature Control 279,127 283,740 264,478 Other 7,603 9,203 9,476 Total net sales $ 1,116,143 $ 1,058,482 $ 971,975 Intersegment sales (a) Engine Management $ 24,995 $ 22,268 $ 20,178 Temperature Control 7,334 7,293 6,542 Other (32,329 ) (29,561 ) (26,720 ) Total intersegment sales $ — $ — $ — Product Line Net Sales (a) Engine Management Ignition, Emission and Fuel System Parts $ 657,287 $ 616,523 $ 598,161 Wire and Cable 172,126 149,016 99,860 Total Engine Management 829,413 765,539 698,021 Temperature Control Compressors 148,377 148,623 127,861 Other Climate Control Parts 130,750 135,117 136,617 Total Temperature Control 279,127 283,740 264,478 All Other 7,603 9,203 9,476 Total Net Sales $ 1,116,143 $ 1,058,482 $ 971,975 Depreciation and Amortization: Engine Management $ 17,981 $ 15,008 $ 12,256 Temperature Control 4,373 4,287 4,329 Other 1,562 1,162 1,052 Total depreciation and amortization $ 23,916 $ 20,457 $ 17,637 Operating income (loss) Engine Management $ 97,403 $ 101,529 $ 88,007 Temperature Control 19,609 17,563 6,382 Other (18,838 ) (21,025 ) (18,529 ) Total operating income $ 98,174 $ 98,067 $ 75,860 Investment in equity affiliates: Engine Management $ 4,162 $ 6,221 $ 6,430 Temperature Control 27,022 13,703 14,192 Other — — — Total investment in equity affiliates $ 31,184 $ 19,924 $ 20,622 Capital expenditures Engine Management $ 17,750 $ 14,202 $ 13,038 Temperature Control 5,151 3,652 3,027 Other 1,541 3,067 1,982 Total capital expenditures $ 24,442 $ 20,921 $ 18,047 Total assets Engine Management $ 527,200 $ 506,625 $ 413,102 Temperature Control 177,006 171,136 177,201 Other 83,361 90,936 90,761 Total assets $ 787,567 $ 768,697 $ 681,064 a) Segment and product line net sales include intersegment sales in our Engine Management and Temperature Control segments. |
Reconciliation of Segment Operating Income to Net Earnings | Reconciliation of segment operating income to net earnings: Year Ended December 31, 2017 2016 2015 (In thousands) Operating income $ 98,174 $ 98,067 $ 75,860 Other non-operating income (expense) 597 2,059 (220 ) Interest expense 2,329 1,556 1,537 Earnings from continuing operations before taxes 96,442 98,570 74,103 Income tax expense 52,812 36,158 25,983 Earnings from continuing operations 43,630 62,412 48,120 Discontinued operations, net of tax (5,654 ) (1,982 ) (2,102 ) Net earnings $ 37,976 $ 60,430 $ 46,018 |
Revenue and Long-lived Assets by Geographical Areas | Year Ended December 31, 2017 2016 2015 Revenues (In thousands) United States $ 996,433 $ 952,019 $ 881,206 Canada 56,575 53,324 48,072 Mexico 24,521 24,429 14,707 Europe 14,088 14,703 16,305 Other foreign 24,526 14,007 11,685 Total revenues $ 1,116,143 $ 1,058,482 $ 971,975 December 31, 2017 2016 2015 Long-lived assets (In thousands) United States $ 202,875 $ 204,592 $ 155,438 Canada 2,017 1,344 1,190 Mexico 4,449 3,877 1,012 Europe 18,530 13,612 12,324 Other foreign 31,185 19,924 20,622 Total long-lived assets $ 259,056 $ 243,349 $ 190,586 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies [Abstract] | |
Rent Expense | Total rent expense for the three years ended December 31, 2017 was as follows (in thousands): Total Real Estate Other 2017 $ 11,954 $ 8,983 $ 2,971 2016 10,171 7,550 2,621 2015 9,756 7,218 2,538 |
Minimum Rental Payments under Operating Leases | At December 31, 2017, we are obligated to make minimum rental payments through 2024, under operating leases, which are as follows (in thousands): 2018 $ 9,485 2019 8,078 2020 6,990 2021 6,355 2022 5,364 Thereafter 3,932 Total $ 40,204 |
Changes in Product Warranties | T December 31, 2017 2016 (In thousands) Balance, beginning of period $ 24,072 $ 23,395 Liabilities accrued for current year sales 94,367 99,092 Settlements of warranty claims (97,510 ) (98,415 ) Balance, end of period $ 20,929 $ 24,072 |
Quarterly Financial Data (Una48
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Data (Unaudited) [Abstract] | |
Quarterly Financial Information | 2017 Quarter Ended Dec. 31 Sept. 30 June 30 Mar. 31 (In thousands, except per share amounts) Net sales $ 239,978 $ 281,058 $ 312,729 $ 282,378 Gross profit 69,345 82,535 90,666 84,110 Earnings (loss) from continuing operations (8,106 ) 17,108 18,261 16,367 Loss from discontinued operations, net of taxes (541 ) (3,983 ) (497 ) (633 ) Net earnings (loss) $ (8,647 ) $ 13,125 $ 17,764 $ 15,734 Net earnings (loss) from continuing operations per common share: Basic $ (0.36 ) $ 0.75 $ 0.80 $ 0.72 Diluted $ (0.36 ) $ 0.74 $ 0.78 $ 0.70 Net earnings (loss) per common share: Basic $ (0.38 ) $ 0.58 $ 0.78 $ 0.69 Diluted $ (0.38 ) $ 0.57 $ 0.76 $ 0.67 2016 Quarter Ended Dec. 31 Sept. 30 June 30 Mar. 31 (In thousands, except per share amounts) Net sales $ 229,799 $ 300,795 $ 288,977 $ 238,911 Gross profit 66,771 95,644 87,076 72,996 Earnings from continuing operations 8,839 21,055 19,862 12,656 Loss from discontinued operations, net of taxes (487 ) (425 ) (618 ) (452 ) Net earnings $ 8,352 $ 20,630 $ 19,244 $ 12,204 Net earnings from continuing operations per common share: Basic $ 0.39 $ 0.93 $ 0.87 $ 0.56 Diluted $ 0.38 $ 0.91 $ 0.86 $ 0.55 Net earnings per common share: Basic $ 0.37 $ 0.91 $ 0.85 $ 0.54 Diluted $ 0.36 $ 0.89 $ 0.84 $ 0.53 |
Summary of Significant Accoun49
Summary of Significant Accounting Policies (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017USD ($)Customershares | Dec. 31, 2016USD ($)shares | Dec. 31, 2015shares | |
Summary of Significant Accounting Policies [Abstract] | ||||
Equity ownership in entities included in consolidated financial statements, minimum | 50.00% | |||
Inventory reserve | $ | $ 41,500 | $ 47,900 | ||
Property, Plant and Equipment [Line Items] | ||||
Valuation allowance | $ | 377 | 505 | ||
Net deferred tax asset | $ | $ 32,420 | $ 51,127 | ||
Income Tax Disclosure [Line Items] | ||||
U.S. Federal income tax rate | 35.00% | |||
Reconciliation of the shares used in calculating basic and dilutive net earnings per common share [Abstract] | ||||
Weighted average common shares outstanding - Basic (in shares) | shares | 22,726,491 | 22,722,517 | 22,811,862 | |
Plus incremental shares from assumed conversions [Abstract] | ||||
Dilutive effect of restricted shares and performance shares (in shares) | shares | 472,000 | 360,000 | 330,000 | |
Weighted average common shares outstanding - Diluted (in shares) | shares | 23,198,392 | 23,082,578 | 23,142,394 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Minimum product warranty period | 90 days | |||
Concentration Risk [Line Items] | ||||
Foreign cash balance | $ | $ 13,100 | $ 16,500 | ||
Customer Concentration Risk [Member] | ||||
Concentration Risk [Line Items] | ||||
Number of largest individual customers | Customer | 5 | |||
Plan [Member] | ||||
Income Tax Disclosure [Line Items] | ||||
U.S. Federal income tax rate | 21.00% | |||
Buildings [Member] | Minimum [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Estimated useful life | 25 years | |||
Buildings [Member] | Maximum [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Estimated useful life | 33 years 6 months | |||
Building Improvements [Member] | Minimum [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Estimated useful life | 10 years | |||
Building Improvements [Member] | Maximum [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Estimated useful life | 25 years | |||
Machinery and Equipment [Member] | Minimum [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Estimated useful life | 5 years | |||
Machinery and Equipment [Member] | Maximum [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Estimated useful life | 12 years | |||
Tools, Dies and Auxiliary Equipment [Member] | Minimum [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Estimated useful life | 3 years | |||
Tools, Dies and Auxiliary Equipment [Member] | Maximum [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Estimated useful life | 8 years | |||
Furniture and Fixtures [Member] | Minimum [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Estimated useful life | 3 years | |||
Furniture and Fixtures [Member] | Maximum [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Estimated useful life | 12 years | |||
Net Sales [Member] | Customer Concentration Risk [Member] | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, percentage | 70.00% | 70.00% | 68.00% | |
Net Sales [Member] | Customer Concentration Risk [Member] | O' Reilly Automotive, Inc. [Member] | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, percentage | 21.00% | |||
Net Sales [Member] | Customer Concentration Risk [Member] | Advance Auto Parts, Inc. [Member] | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, percentage | 17.00% | |||
Net Sales [Member] | Customer Concentration Risk [Member] | NAPA Auto Parts [Member] | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, percentage | 16.00% | |||
Net Sales [Member] | Customer Concentration Risk [Member] | AutoZone, Inc [Member] | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, percentage | 10.00% | |||
Restricted and Performance Shares [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | shares | 248,000 | 304,000 | 307,000 |
Business Acquisitions and Inv50
Business Acquisitions and Investments, General Cable Corporation Acquisitions (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||||
May 31, 2016 | Dec. 31, 2017 | Nov. 30, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Business Acquisition [Line Items] | ||||||
Equity in joint ventures | $ 31,184 | $ 19,924 | $ 20,622 | |||
Assets acquired and liabilities assumed [Abstract] | ||||||
Goodwill | 67,413 | $ 67,231 | $ 54,881 | |||
General Cable Corporation [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Percentage of equity interest acquired | 100.00% | |||||
Allocation of purchase price to the assets acquired and liabilities assumed [Abstract] | ||||||
Purchase Price | $ 67,451 | |||||
Assets acquired and liabilities assumed [Abstract] | ||||||
Receivables | 3,130 | |||||
Inventory | 12,567 | |||||
Other current and noncurrent assets | [1] | 334 | ||||
Property, plant and equipment, net | 2,660 | |||||
Intangible assets | 42,440 | |||||
Goodwill | 12,746 | |||||
Current liabilities | (6,426) | |||||
Net assets acquired | 67,451 | |||||
Cash acquired | 200 | |||||
Incremental net sales from acquisition | $ 38,400 | |||||
General Cable Corporation [Member] | Customer Relationships [Member] | ||||||
Assets acquired and liabilities assumed [Abstract] | ||||||
Intangible assets acquired in business acquisition | $ 39,400 | |||||
Estimated useful life of intangible assets | 15 years | |||||
General Cable Corporation [Member] | Non-Compete Agreements [Member] | ||||||
Assets acquired and liabilities assumed [Abstract] | ||||||
Intangible assets acquired in business acquisition | $ 2,200 | |||||
Estimated useful life of intangible assets | 5 years | |||||
General Cable Corporation [Member] | Supply Agreement [Member] | ||||||
Assets acquired and liabilities assumed [Abstract] | ||||||
Intangible assets acquired in business acquisition | $ 800 | |||||
Estimated useful life of intangible assets | 1 year | |||||
Foshan Guangdong Automotive Air Conditioning Co., Ltd [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Percentage of equity interest acquired | 50.00% | |||||
Equity in joint ventures | $ 12,500 | |||||
[1] | Other current and noncurrent assets includes $0.2 million of cash acquired. |
Restructuring and Integration51
Restructuring and Integration Expense (Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | 20 Months Ended | 23 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2017 | ||
Restructuring and integration activities [Roll Forward] | |||||
Exit activity liability, beginning of period | $ 2,576 | $ 861 | |||
Restructuring and integration costs [Abstract] | |||||
Amounts provided for during the period | 6,173 | 3,957 | |||
Cash payments | (5,681) | (1,546) | |||
Reclassification to ongoing accrued liabilities | [1] | (696) | |||
Foreign currency exchange rate changes and other | (214) | ||||
Exit activity liability, end of period | 2,854 | 2,576 | $ 2,854 | $ 2,854 | |
Plant Rationalization Program [Member] | |||||
Restructuring and integration activities [Roll Forward] | |||||
Exit activity liability, beginning of period | 2,054 | 0 | |||
Restructuring and integration costs [Abstract] | |||||
Amounts provided for during the period | 2,405 | 3,205 | 5,600 | ||
Cash payments | (2,983) | (1,151) | |||
Exit activity liability, end of period | 1,476 | 2,054 | 1,476 | 1,476 | |
Restructuring and related cost, Expected cost [Abstract] | |||||
Restructuring and integration expenses expected to be incurred | 5,800 | 5,800 | 5,800 | ||
Orlando Plant Rationalization Program [Member] | |||||
Restructuring and integration activities [Roll Forward] | |||||
Exit activity liability, beginning of period | 0 | ||||
Restructuring and integration costs [Abstract] | |||||
Amounts provided for during the period | 1,758 | ||||
Cash payments | (772) | ||||
Exit activity liability, end of period | 986 | 0 | 986 | 986 | |
Restructuring and related cost, Expected cost [Abstract] | |||||
Restructuring and integration expenses expected to be incurred | 2,900 | 2,900 | 2,900 | ||
Wire and Cable Relocation [Member] | |||||
Restructuring and integration activities [Roll Forward] | |||||
Exit activity liability, beginning of period | 522 | 0 | |||
Restructuring and integration costs [Abstract] | |||||
Amounts provided for during the period | 1,759 | 714 | 2,500 | ||
Cash payments | (1,926) | (192) | |||
Foreign currency exchange rate changes and other | 37 | ||||
Exit activity liability, end of period | 392 | 522 | 392 | 392 | |
Restructuring and related cost, Expected cost [Abstract] | |||||
Restructuring and integration expenses expected to be incurred | 4,100 | 4,100 | 4,100 | ||
Workforce Reduction [Member] | |||||
Restructuring and integration activities [Roll Forward] | |||||
Exit activity liability, beginning of period | 2,576 | 270 | |||
Restructuring and integration costs [Abstract] | |||||
Amounts provided for during the period | 2,220 | 2,934 | |||
Cash payments | (1,979) | (392) | |||
Reclassification to ongoing accrued liabilities | [1] | (236) | |||
Foreign currency exchange rate changes and other | 37 | ||||
Exit activity liability, end of period | 2,854 | 2,576 | 2,854 | 2,854 | |
Other Exit Costs [Member] | |||||
Restructuring and integration activities [Roll Forward] | |||||
Exit activity liability, beginning of period | 0 | 591 | |||
Restructuring and integration costs [Abstract] | |||||
Amounts provided for during the period | 3,953 | 1,023 | |||
Cash payments | (3,702) | (1,154) | |||
Reclassification to ongoing accrued liabilities | [1] | (460) | |||
Foreign currency exchange rate changes and other | (251) | ||||
Exit activity liability, end of period | 0 | 0 | 0 | 0 | |
Engine Management [Member] | Plant Rationalization Program [Member] | |||||
Restructuring and integration activities [Roll Forward] | |||||
Exit activity liability, beginning of period | 11 | 0 | |||
Restructuring and integration costs [Abstract] | |||||
Amounts provided for during the period | 631 | 844 | |||
Cash payments | (642) | (833) | |||
Exit activity liability, end of period | 0 | 11 | 0 | 0 | |
Engine Management [Member] | Orlando Plant Rationalization Program [Member] | |||||
Restructuring and integration activities [Roll Forward] | |||||
Exit activity liability, beginning of period | 0 | ||||
Restructuring and integration costs [Abstract] | |||||
Amounts provided for during the period | 1,758 | ||||
Cash payments | (772) | ||||
Exit activity liability, end of period | 986 | 0 | 986 | 986 | |
Engine Management [Member] | Wire and Cable Relocation [Member] | |||||
Restructuring and integration activities [Roll Forward] | |||||
Exit activity liability, beginning of period | 522 | 0 | |||
Restructuring and integration costs [Abstract] | |||||
Amounts provided for during the period | 1,759 | 714 | |||
Cash payments | (1,926) | (192) | |||
Foreign currency exchange rate changes and other | 37 | ||||
Exit activity liability, end of period | 392 | 522 | 392 | 392 | |
Temperature Control [Member] | Plant Rationalization Program [Member] | |||||
Restructuring and integration activities [Roll Forward] | |||||
Exit activity liability, beginning of period | 2,043 | 0 | |||
Restructuring and integration costs [Abstract] | |||||
Amounts provided for during the period | 1,774 | 2,361 | |||
Cash payments | (2,341) | (318) | |||
Exit activity liability, end of period | 1,476 | 2,043 | 1,476 | 1,476 | |
Temperature Control [Member] | Orlando Plant Rationalization Program [Member] | |||||
Restructuring and integration activities [Roll Forward] | |||||
Exit activity liability, beginning of period | 0 | ||||
Restructuring and integration costs [Abstract] | |||||
Amounts provided for during the period | 0 | ||||
Cash payments | 0 | ||||
Exit activity liability, end of period | 0 | 0 | 0 | 0 | |
Temperature Control [Member] | Wire and Cable Relocation [Member] | |||||
Restructuring and integration activities [Roll Forward] | |||||
Exit activity liability, beginning of period | 0 | 0 | |||
Restructuring and integration costs [Abstract] | |||||
Amounts provided for during the period | 0 | 0 | |||
Cash payments | 0 | 0 | |||
Foreign currency exchange rate changes and other | 0 | ||||
Exit activity liability, end of period | 0 | 0 | 0 | 0 | |
Other [Member] | Plant Rationalization Program [Member] | |||||
Restructuring and integration activities [Roll Forward] | |||||
Exit activity liability, beginning of period | 0 | 0 | |||
Restructuring and integration costs [Abstract] | |||||
Amounts provided for during the period | 0 | 0 | |||
Cash payments | 0 | 0 | |||
Exit activity liability, end of period | 0 | 0 | 0 | 0 | |
Other [Member] | Orlando Plant Rationalization Program [Member] | |||||
Restructuring and integration activities [Roll Forward] | |||||
Exit activity liability, beginning of period | 0 | ||||
Restructuring and integration costs [Abstract] | |||||
Amounts provided for during the period | 0 | ||||
Cash payments | 0 | ||||
Exit activity liability, end of period | 0 | 0 | 0 | 0 | |
Other [Member] | Wire and Cable Relocation [Member] | |||||
Restructuring and integration activities [Roll Forward] | |||||
Exit activity liability, beginning of period | 0 | 0 | |||
Restructuring and integration costs [Abstract] | |||||
Amounts provided for during the period | 0 | 0 | |||
Cash payments | 0 | 0 | |||
Foreign currency exchange rate changes and other | 0 | ||||
Exit activity liability, end of period | $ 0 | $ 0 | $ 0 | $ 0 | |
[1] | Applies to liabilities associated with the prior year restructuring and integration programs which relate primarily to employee severance and other retiree benefit enhancements to be paid through 2020 and environmental clean-up costs at our Long Island City, New York location in connection with the closure of our manufacturing operations at the site. These amounts were reclassified out of the restructuring and integration liability and into ongoing accrued liabilities as of December 31, 2016. |
Sale of Receivables (Details)
Sale of Receivables (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Sale of Receivables [Abstract] | |||
Sale of receivables to financial institutions | $ 780.5 | $ 759.2 | |
Charge related to sale of receivables | $ 22.6 | $ 19.3 | $ 14.3 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Inventories [Abstract] | ||
Finished goods | $ 209,800 | $ 203,700 |
Work-in-process | 7,536 | 6,823 |
Raw materials | 109,075 | 101,954 |
Total inventories | $ 326,411 | $ 312,477 |
Property, Plant and Equipment54
Property, Plant and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Property, plant and equipment [Abstract] | |||
Total property, plant and equipment | $ 280,184 | $ 270,050 | |
Less accumulated depreciation | 191,081 | 191,551 | |
Total property, plant and equipment, net | 89,103 | 78,499 | |
Depreciation expense | 15,400 | 12,800 | $ 12,100 |
Land, Buildings and Improvements [Member] | |||
Property, plant and equipment [Abstract] | |||
Total property, plant and equipment | 46,930 | 46,447 | |
Machinery and Equipment [Member] | |||
Property, plant and equipment [Abstract] | |||
Total property, plant and equipment | 132,467 | 128,650 | |
Tools, Dies and Auxiliary Equipment [Member] | |||
Property, plant and equipment [Abstract] | |||
Total property, plant and equipment | 45,769 | 44,683 | |
Furniture and Fixtures [Member] | |||
Property, plant and equipment [Abstract] | |||
Total property, plant and equipment | 28,352 | 27,482 | |
Leasehold Improvements [Member] | |||
Property, plant and equipment [Abstract] | |||
Total property, plant and equipment | 10,348 | 8,369 | |
Construction-in-Progress [Member] | |||
Property, plant and equipment [Abstract] | |||
Total property, plant and equipment | $ 16,318 | $ 14,419 |
Goodwill and Other Intangible55
Goodwill and Other Intangible Assets (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |||
May 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Goodwill by operating segment [Abstract] | |||||
Goodwill gross, beginning balance | $ 105,719 | $ 93,369 | |||
Goodwill accumulated impairment losses, Beginning balance | (38,488) | (38,488) | |||
Goodwill net, beginning balance | 67,231 | 54,881 | |||
Goodwill foreign currency exchange rate change | 182 | (396) | |||
Goodwill gross, ending balance | 105,901 | 105,719 | $ 93,369 | ||
Goodwill accumulated impairment losses, Ending balance | (38,488) | (38,488) | (38,488) | ||
Goodwill net, ending balance | 67,413 | 67,231 | 54,881 | ||
Acquired Indefinite-lived Intangible Assets [Line Items] | |||||
Total acquired intangible assets | 98,966 | 98,742 | |||
Less accumulated amortization | [1] | (43,853) | (35,830) | ||
Net acquired intangible assets | 55,113 | 62,912 | |||
Amortization of acquired intangible assets [Abstract] | |||||
Amortization expense | 8,000 | 7,100 | 4,900 | ||
Estimated amortization expense in year 2018 | 7,600 | ||||
Estimated amortization expense in year 2019 | 6,300 | ||||
Estimated amortization expense in year 2020 | 5,900 | ||||
Estimated amortization expense in year 2020 | 4,600 | ||||
Estimated amortization expense in years 2022 through 2031 | 25,500 | ||||
General Cable Corporation [Member] | |||||
Goodwill by operating segment [Abstract] | |||||
Goodwill acquired during period | 12,746 | ||||
Goodwill net, ending balance | $ 12,746 | ||||
Engine Management [Member] | |||||
Goodwill by operating segment [Abstract] | |||||
Goodwill gross, beginning balance | 91,449 | 79,099 | |||
Goodwill accumulated impairment losses, Beginning balance | (38,488) | (38,488) | |||
Goodwill net, beginning balance | 52,961 | 40,611 | |||
Goodwill foreign currency exchange rate change | 182 | (396) | |||
Goodwill gross, ending balance | 91,631 | 91,449 | 79,099 | ||
Goodwill accumulated impairment losses, Ending balance | (38,488) | (38,488) | (38,488) | ||
Goodwill net, ending balance | 53,143 | 52,961 | 40,611 | ||
Engine Management [Member] | General Cable Corporation [Member] | |||||
Goodwill by operating segment [Abstract] | |||||
Goodwill acquired during period | 12,746 | ||||
Temperature Control [Member] | |||||
Goodwill by operating segment [Abstract] | |||||
Goodwill gross, beginning balance | 14,270 | 14,270 | |||
Goodwill accumulated impairment losses, Beginning balance | 0 | 0 | |||
Goodwill net, beginning balance | 14,270 | 14,270 | |||
Goodwill foreign currency exchange rate change | 0 | 0 | |||
Goodwill gross, ending balance | 14,270 | 14,270 | 14,270 | ||
Goodwill accumulated impairment losses, Ending balance | 0 | 0 | 0 | ||
Goodwill net, ending balance | 14,270 | 14,270 | 14,270 | ||
Temperature Control [Member] | General Cable Corporation [Member] | |||||
Goodwill by operating segment [Abstract] | |||||
Goodwill acquired during period | 0 | ||||
Customer Relationships [Member] | |||||
Acquired Indefinite-lived Intangible Assets [Line Items] | |||||
Total acquired intangible assets | 87,290 | 87,070 | |||
Customer Relationships [Member] | General Cable Corporation [Member] | |||||
Other Intangible Assets [Abstract] | |||||
Estimated useful life of intangible assets | 15 years | ||||
Trademarks and Trade Names [Member] | |||||
Acquired Indefinite-lived Intangible Assets [Line Items] | |||||
Total acquired intangible assets | 6,800 | 6,800 | |||
Intangible assets acquired [Abstract] | |||||
Amount of acquired indefinite-lived intangible assets | 5,200 | ||||
Non-Compete Agreements [Member] | |||||
Acquired Indefinite-lived Intangible Assets [Line Items] | |||||
Total acquired intangible assets | 3,193 | 3,189 | |||
Non-Compete Agreements [Member] | General Cable Corporation [Member] | |||||
Other Intangible Assets [Abstract] | |||||
Estimated useful life of intangible assets | 5 years | ||||
Patents [Member] | |||||
Acquired Indefinite-lived Intangible Assets [Line Items] | |||||
Total acquired intangible assets | 723 | 723 | |||
Supply Agreement [Member] | |||||
Acquired Indefinite-lived Intangible Assets [Line Items] | |||||
Total acquired intangible assets | 800 | 800 | |||
Supply Agreement [Member] | General Cable Corporation [Member] | |||||
Other Intangible Assets [Abstract] | |||||
Estimated useful life of intangible assets | 1 year | ||||
Leaseholds [Member] | |||||
Acquired Indefinite-lived Intangible Assets [Line Items] | |||||
Total acquired intangible assets | 160 | 160 | |||
Computer Software [Member] | |||||
Other Intangible Assets [Abstract] | |||||
Other intangible assets | 17,200 | 16,700 | |||
Accumulated computer software amortization | (16,100) | (15,600) | |||
Amortization of computer software | $ 500 | $ 600 | $ 600 | ||
Computer Software [Member] | Minimum [Member] | |||||
Other Intangible Assets [Abstract] | |||||
Estimated useful life of intangible assets | 3 years | ||||
Computer Software [Member] | Maximum [Member] | |||||
Other Intangible Assets [Abstract] | |||||
Estimated useful life of intangible assets | 10 years | ||||
[1] | Applies to all intangible assets, except for trademarks and trade names totaling $5.2 million, which have indefinite useful lives and, as such, are not being amortized. |
Other Assets (Details)
Other Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||
Dec. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Nov. 30, 2017 | Dec. 31, 2015 | Apr. 30, 2014 | Jan. 31, 2013 | |
Other Assets [Abstract] | |||||||
Equity in joint ventures | $ 31,184 | $ 31,184 | $ 19,924 | $ 20,622 | |||
Deferred compensation | 13,612 | 13,612 | 10,763 | ||||
Long term receivables | 0 | 0 | 1,061 | ||||
Deferred financing costs, net | 630 | 630 | 973 | ||||
Other | 853 | 853 | 842 | ||||
Total other assets, net | 46,279 | 46,279 | 33,563 | ||||
Schedule of Equity Method Investments [Line Items] | |||||||
Equity in joint ventures | $ 31,184 | 31,184 | 19,924 | $ 20,622 | |||
Foshan Guangdong Automotive Air Conditioning Co., Ltd [Member] | |||||||
Other Assets [Abstract] | |||||||
Equity in joint ventures | $ 12,500 | ||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Percentage of equity interest acquired | 50.00% | ||||||
Equity in joint ventures | $ 12,500 | ||||||
Gwo Yng Enterprise Co., Ltd. [Member] | |||||||
Other Assets [Abstract] | |||||||
Equity in joint ventures | $ 14,000 | ||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Percentage of equity interest acquired | 50.00% | ||||||
Equity in joint ventures | $ 14,000 | ||||||
Purchases from equity method investment | $ 15,100 | 15,400 | |||||
Orange Electronic Co., Ltd [Member] | |||||||
Other Assets [Abstract] | |||||||
Equity in joint ventures | $ 6,300 | ||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Percentage of equity interest acquired | 19.40% | 19.40% | 25.00% | ||||
Equity in joint ventures | $ 6,300 | ||||||
Impairment charge | $ 1,800 | ||||||
Purchases from equity method investment | $ 4,300 | $ 5,000 |
Credit Facilities and Long-Te57
Credit Facilities and Long-Term Debt, Total Debt Outstanding (Details) PLN in Thousands, $ in Thousands | Dec. 31, 2017USD ($) | Dec. 31, 2017PLN | Dec. 31, 2016USD ($) | |
Credit Facilities and Long-Term Debt [Abstract] | ||||
Revolving credit facilities | $ 57,000 | $ 54,812 | ||
Other | [1] | 4,778 | 163 | |
Total debt | 61,778 | 54,975 | ||
Current maturities of debt | 61,699 | 54,855 | ||
Long-term debt | 79 | $ 120 | ||
Overdraft facility | $ 4,700 | PLN 16,200 | ||
[1] | Other includes borrowings under our Polish overdraft facility of Zloty 16.2 million (approximately $4.7 million). |
Credit Facilities and Long-Te58
Credit Facilities and Long-Term Debt, Revolving Credit Facility (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Fixed Assets Included in Borrowing Base [Member] | Maximum [Member] | ||
Line of Credit Facility [Line Items] | ||
Borrowing base | $ 25,000 | |
Borrowing base percentage | 10.00% | |
Fixed Assets Not Included in Borrowing Base [Member] | ||
Line of Credit Facility [Line Items] | ||
Borrowing base | $ 31,250 | |
Borrowing base percentage | 12.50% | |
JPMorgan Chase Bank Credit Facility [Member] | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | $ 250,000 | |
Line of credit facility, additional borrowing capacity | $ 50,000 | |
Maturity date | Oct. 31, 2020 | |
Additional available borrowing capacity | $ 142,900 | |
Weighted average interest rate | 2.70% | 2.30% |
JPMorgan Chase Bank Credit Facility [Member] | LIBOR [Member] | Minimum [Member] | ||
Line of Credit Facility [Line Items] | ||
Margin on variable rate | 1.25% | |
JPMorgan Chase Bank Credit Facility [Member] | LIBOR [Member] | Maximum [Member] | ||
Line of Credit Facility [Line Items] | ||
Margin on variable rate | 1.75% | |
JPMorgan Chase Bank Credit Facility [Member] | Alternate Base Rate [Member] | ||
Line of Credit Facility [Line Items] | ||
Outstanding borrowings under credit facility | $ 9,800 | |
Weighted average interest rate | 4.00% | |
Average daily loan balance outstanding | $ 3,800 | $ 2,600 |
JPMorgan Chase Bank Credit Facility [Member] | Alternate Base Rate [Member] | Minimum [Member] | ||
Line of Credit Facility [Line Items] | ||
Margin on variable rate | 0.25% | |
JPMorgan Chase Bank Credit Facility [Member] | Alternate Base Rate [Member] | Maximum [Member] | ||
Line of Credit Facility [Line Items] | ||
Margin on variable rate | 0.75% | |
JPMorgan Chase Bank Credit Facility [Member] | Direct Borrowings [Member] | ||
Line of Credit Facility [Line Items] | ||
Outstanding borrowings under credit facility | $ 57,000 | $ 45,000 |
Weighted average interest rate | 2.00% | |
Line of Credit [Member] | ||
Line of Credit Facility [Line Items] | ||
Coverage ratio | 1 | |
Line of Credit [Member] | Pay Cash Dividend [Member] | ||
Line of Credit Facility [Line Items] | ||
Agreement permissions | $ 20,000 | |
Line of Credit [Member] | Stock Repurchase [Member] | ||
Line of Credit Facility [Line Items] | ||
Agreement permissions | 20,000 | |
Line of Credit [Member] | Stock Repurchase [Member] | Minimum [Member] | ||
Line of Credit Facility [Line Items] | ||
Borrowing base | 25,000 | |
Line of Credit [Member] | Cash Dividend And Stock Repurchases [Member] | Minimum [Member] | ||
Line of Credit Facility [Line Items] | ||
Agreement permissions | 20,000 | |
Line of Credit [Member] | CANADA [Member] | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | $ 10,000 |
Credit Facilities and Long-Te59
Credit Facilities and Long-Term Debt, Polish Overdraft Facility (Details) - 12 months ended Dec. 31, 2017 PLN in Thousands, $ in Thousands | USD ($) | PLN |
Line of Credit Facility [Line Items] | ||
Overdraft facility | $ 4,700 | PLN 16,200 |
HSBC Bank Polaska S.A [Member] | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | $ 8,200 | 30,000 |
Overdraft facility expiration date | Dec. 31, 2018 | |
Overdraft facility | $ 4,700 | PLN 16,200 |
HSBC Bank Polaska S.A [Member] | 1M WIBOR [Member] | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate | 0.75% |
Credit Facilities and Long-Te60
Credit Facilities and Long-Term Debt, Deferred Financing Costs (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Amortization for Future Years [Abstract] | ||
2,018 | $ 343 | |
2,019 | 343 | |
2,020 | 287 | |
Total amortization | 973 | |
Deferred financing costs | $ 1,000 | $ 1,300 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 2 Months Ended | 12 Months Ended | ||||||
Jan. 31, 2016 | Feb. 16, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Nov. 30, 2017 | Feb. 28, 2017 | Jul. 31, 2015 | Feb. 28, 2015 | |
Class of Stock [Line Items] | |||||||||
Stock repurchased during period | $ (24,779) | $ (377) | $ (19,623) | ||||||
Preferred Stock [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Preferred stock, shares authorized (in shares) | 500,000 | ||||||||
Preferred stock, par value (in dollars per share) | $ 20 | ||||||||
Preferred stock, shares outstanding (in shares) | 0 | 0 | |||||||
Series A Preferred Stock [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Preferred stock, shares authorized (in shares) | 30,000 | ||||||||
Preferred stock, voting rights | Each share of the Series A Preferred Stock shall entitle the holder to one thousand votes | ||||||||
Stock Repurchase Program 2015 [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Stock repurchase program, authorized amount | $ 10,000 | $ 10,000 | |||||||
Stock repurchased during period (in shares) | (10,135) | (551,791) | |||||||
Stock repurchased during period | $ (400) | $ (19,600) | |||||||
Stock repurchase program, remaining authorized amount | $ 400 | ||||||||
Stock Repurchase Program 2017 [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Stock repurchase program, authorized amount | $ 10,000 | $ 20,000 | |||||||
Stock repurchased during period (in shares) | (539,760) | ||||||||
Stock repurchased during period | $ (24,800) | ||||||||
Stock repurchase program, remaining authorized amount | $ 5,200 | ||||||||
Stock Repurchase Program 2018 [Member] | Subsequent Event [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Stock repurchased during period (in shares) | (35,756) | ||||||||
Stock repurchased during period | $ (1,700) | ||||||||
Stock repurchase program, remaining authorized amount | $ 3,500 |
Accumulated Other Comprehensi62
Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Changes in accumulated other comprehensive income [Roll Forward] | |||
Balance | $ 441,028 | $ 391,979 | $ 374,153 |
Other comprehensive income before reclassifications | 7,316 | (4,962) | |
Amounts reclassified from accumulated other comprehensive income | (397) | 408 | |
Total other comprehensive income (loss), net of tax | 6,919 | (4,554) | (3,822) |
Balance | 453,654 | 441,028 | 391,979 |
Accumulated Other Comprehensive Income (Loss) [Member] | |||
Changes in accumulated other comprehensive income [Roll Forward] | |||
Balance | (11,028) | (6,474) | (2,652) |
Total other comprehensive income (loss), net of tax | 6,919 | (4,554) | (3,822) |
Balance | (4,109) | (11,028) | (6,474) |
Foreign Currency Translation Adjustments [Member] | |||
Changes in accumulated other comprehensive income [Roll Forward] | |||
Balance | (11,252) | (5,958) | |
Other comprehensive income before reclassifications | 7,027 | (5,294) | |
Amounts reclassified from accumulated other comprehensive income | 0 | 0 | |
Total other comprehensive income (loss), net of tax | 7,027 | (5,294) | |
Balance | (4,225) | (11,252) | (5,958) |
Unrecognized Postretirement Benefit Costs (Credit) [Member] | |||
Changes in accumulated other comprehensive income [Roll Forward] | |||
Balance | 224 | (516) | |
Other comprehensive income before reclassifications | 289 | 332 | |
Amounts reclassified from accumulated other comprehensive income | (397) | 408 | |
Total other comprehensive income (loss), net of tax | (108) | 740 | |
Balance | $ 116 | $ 224 | $ (516) |
Accumulated Other Comprehensi63
Accumulated Other Comprehensive Income, Reclassified (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Amortization of postretirement benefit plans [Abstract] | ||||
Prior service benefit | $ 0 | $ (54) | $ (112) | |
Unrecognized (gain) loss | (661) | 763 | 2,261 | |
Income tax expense | 72 | (514) | $ (1,325) | |
Total reclassifications for the period | (397) | 408 | ||
Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
Amortization of postretirement benefit plans [Abstract] | ||||
Prior service benefit | [1] | 0 | (54) | |
Unrecognized (gain) loss | [1] | (661) | 763 | |
Total before income tax | (661) | 709 | ||
Income tax expense | 264 | (301) | ||
Total reclassifications for the period | $ (397) | $ 408 | ||
[1] | These accumulated other comprehensive income components are included in the computation of net periodic postretirement benefit costs, which are included in selling, general and administrative expenses in our consolidated statements of operations (see Note 14 for additional information). |
Stock-Based Compensation Plan64
Stock-Based Compensation Plans (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017USD ($)Plan$ / sharesshares | Dec. 31, 2016USD ($)$ / sharesshares | Dec. 31, 2015USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ | $ 7,638 | $ 6,127 | $ 5,379 |
Performance-Based Shares [Member] | |||
Restricted and Performance Stock Grants [Abstract] | |||
Measuring period for performance-based shares | 3 years | ||
Award vesting rights | Selected executives and other key personnel are granted performance awards whose vesting is contingent upon meeting various performance measures with a retention feature. Performance-based shares are subject to a three year measuring period and the achievement of performance targets and, depending upon the achievement of such performance targets, they may become vested on the third anniversary of the date of grant. | ||
Restricted Shares [Member] | |||
Restricted and Performance Stock Grants [Abstract] | |||
Award vesting rights | Restricted shares granted to employees become fully vested upon the third anniversary of the date of grant; and for selected key executives certain additional restricted share grants vest 25% upon the attainment of age 60, 25% upon the attainment of age 63 and become fully vested upon the attainment of age 65. Restricted shares granted to directors become fully vested upon the first anniversary of the date of grant. Commencing with the 2015 grants, restricted and performance shares issued to certain key executives and directors are subject to a one or two year holding period upon the lapse of the three year vesting period. | ||
Restricted Shares [Member] | Age 60 [Member] | |||
Restricted and Performance Stock Grants [Abstract] | |||
Vesting percentage | 25.00% | ||
Restricted Shares [Member] | Age 63 [Member] | |||
Restricted and Performance Stock Grants [Abstract] | |||
Vesting percentage | 25.00% | ||
Restricted Shares [Member] | Age 65 [Member] | |||
Restricted and Performance Stock Grants [Abstract] | |||
Vesting percentage | 100.00% | ||
Restricted and Performance-Based Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ | $ 7,100 | 5,700 | 5,000 |
Stock-based compensation expense, net of tax | $ | 3,200 | 3,600 | $ 3,200 |
Unamortized compensation expense | $ | $ 16,600 | $ 15,600 | |
Restricted and performance-based stock, shares [Roll Forward] | |||
Beginning of period (in shares) | 822,848 | 758,550 | |
Granted (in shares) | 207,975 | 212,500 | |
Vested (in shares) | (169,615) | (138,427) | |
Forfeited (in shares) | (7,250) | (9,775) | |
End of period (in shares) | 853,958 | 822,848 | 758,550 |
Restricted and performance-based stock, weighted average grant date fair value per share [Roll Forward] | |||
Beginning of period (in dollars per share) | $ / shares | $ 30.46 | $ 27.19 | |
Granted (in dollars per share) | $ / shares | 42.79 | 42.93 | |
Vested (in dollars per share) | $ / shares | 31.26 | 31.55 | |
Forfeited (in dollars per share) | $ / shares | 37.24 | 31.79 | |
End of period (in dollars per share) | $ / shares | $ 33.25 | $ 30.46 | $ 27.19 |
Weighted-average grant date fair value | $ | $ 28,400 | $ 25,100 | $ 20,600 |
Restricted and Performance-Based Shares [Member] | Employees [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average period of recognition for unrecognized compensation expense | 4 years 9 months 18 days | 5 years 8 months 12 days | |
Restricted and Performance Stock Grants [Abstract] | |||
Estimated forfeitures | 5.00% | ||
Restricted and Performance-Based Shares [Member] | Executives [Member] | |||
Restricted and Performance Stock Grants [Abstract] | |||
Estimated forfeitures | 0.00% | ||
Restricted and Performance-Based Shares [Member] | Directors [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average period of recognition for unrecognized compensation expense | 3 months 18 days | 3 months 18 days | |
Restricted and Performance Stock Grants [Abstract] | |||
Estimated forfeitures | 0.00% | ||
Restricted and Performance-Based Shares [Member] | Executives and Directors [Member] | |||
Restricted and Performance Stock Grants [Abstract] | |||
Expiration of vesting period | 3 years | ||
Restricted and Performance-Based Shares [Member] | Executives and Directors [Member] | Minimum [Member] | |||
Restricted and Performance Stock Grants [Abstract] | |||
Holding period for restricted and performance shares issued | 1 year | ||
Post vesting holding period for restricted and performance shares issued | 1 year | ||
Restricted and Performance-Based Shares [Member] | Executives and Directors [Member] | Maximum [Member] | |||
Restricted and Performance Stock Grants [Abstract] | |||
Holding period for restricted and performance shares issued | 2 years | ||
Post vesting holding period for restricted and performance shares issued | 2 years | ||
2016 Omnibus Incentive Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of stock-based compensation plans | Plan | 1 | ||
Shares authorized for issuance (in shares) | 1,100,000 | ||
2016 Omnibus Incentive Plan [Member] | Performance-Based Shares [Member] | |||
Restricted and performance-based stock, shares [Roll Forward] | |||
Granted (in shares) | 55,000 | ||
2016 Omnibus Incentive Plan [Member] | Restricted Shares [Member] | |||
Restricted and performance-based stock, shares [Roll Forward] | |||
Granted (in shares) | 152,975 | ||
2016 Omnibus Incentive Plan [Member] | Restricted and Performance-Based Shares [Member] | |||
Restricted and Performance Stock Grants [Abstract] | |||
Restricted and performance-based stock grants issued, net of forfeitures (in shares) | 418,000 | ||
Common stock available for future grants (in shares) | 682,000 |
Retirement Benefit Plans (Detai
Retirement Benefit Plans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Contribution Plans [Abstract] | |||
U.S defined contribution | $ 9,980 | $ 8,625 | $ 8,445 |
Matching Obligations in Connection with Plans Which are Funded in Cash and Typically Contributed to Plans [Abstract] | |||
Employer contributions during the period | 600 | 300 | 300 |
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | |||
Provision for expense in connection with ESOP | 2,200 | 2,000 | 2,200 |
SERP Defined Benefit Plan [Member] | |||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | |||
Benefit obligation outstanding | 0 | 0 | |
Net periodic benefit cost | $ 0 | $ 0 | $ 2,500 |
Employee Stock Ownership Plan and Trust (ESOP) [Member] | |||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | |||
Additional shares contributed to ESOP (in shares) | 43,300 | ||
Shares released from trust (in shares) | 43,300 | ||
Total remaining balance of shares in the ESOP (in shares) | 200 |
Postretirement Medical Benefi66
Postretirement Medical Benefits (Details) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2017USD ($)Employee | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |||
Defined Benefit Plan Disclosure [Line Items] | |||||
Number of former union employees not covered under plan | Employee | 24 | ||||
Postretirement Benefits [Member] | |||||
Amounts recognized in the balance sheet [Abstract] | |||||
Accrued postretirement benefit liabilities | $ 672 | $ 1,574 | |||
Accumulated other comprehensive (income) loss (pre-tax) related to [Abstract] | |||||
Unrecognized net actuarial losses (gains) | (194) | (374) | |||
Unrecognized prior service cost (credit) | 0 | 0 | |||
Net Periodic benefit costs related to retirement plans [Abstract] | |||||
Net periodic benefit cost (credit) | (653) | 722 | $ 1,441 | ||
Summary of expected future benefit payments [Abstract] | |||||
2,018 | 440 | ||||
2,019 | 42 | ||||
2,020 | 38 | ||||
2,021 | 33 | ||||
2,022 | 29 | ||||
Years 2023 - 2027 | 91 | ||||
Postretirement Benefits [Member] | United States [Member] | |||||
Change in benefit obligation [Roll Forward] | |||||
Benefit obligation at beginning of year | 1,574 | 2,928 | |||
Service cost | 0 | 0 | 0 | ||
Interest cost | 8 | 11 | 24 | ||
Benefits paid | (429) | (831) | |||
Actuarial gain | (481) | (534) | |||
Translation adjustment & Other | 0 | 0 | |||
Benefit obligation at end of year | 672 | 1,574 | 2,928 | ||
(Unfunded) status of the plans | (672) | (1,574) | |||
Net Periodic benefit costs related to retirement plans [Abstract] | |||||
Service cost | 0 | 0 | 0 | ||
Interest cost | 8 | 11 | 24 | ||
Actuarial net (gain) loss | (661) | 809 | 1,548 | ||
Net periodic benefit cost (credit) | $ (653) | $ 820 | $ 1,572 | ||
Actuarial assumptions used to determine costs and benefit obligations related to postretirement plan [Abstract] | |||||
Discount rate | 0.00% | 0.00% | 0.00% | ||
Postretirement Benefits [Member] | CANADA [Member] | |||||
Change in benefit obligation [Roll Forward] | |||||
Benefit obligation at beginning of year | $ 0 | $ 74 | |||
Service cost | 0 | 0 | $ 0 | ||
Interest cost | 0 | 2 | 3 | ||
Benefits paid | 0 | (17) | |||
Actuarial gain | 0 | (9) | |||
Translation adjustment & Other | 0 | (50) | |||
Benefit obligation at end of year | 0 | 0 | 74 | ||
(Unfunded) status of the plans | 0 | 0 | |||
Net Periodic benefit costs related to retirement plans [Abstract] | |||||
Service cost | 0 | 0 | 0 | ||
Interest cost | 0 | 2 | 3 | ||
Amortization of prior service cost | 0 | (54) | (112) | ||
Actuarial net (gain) loss | 0 | (46) | (22) | ||
Net periodic benefit cost (credit) | $ 0 | $ (98) | $ (131) | ||
Actuarial assumptions used to determine costs and benefit obligations related to postretirement plan [Abstract] | |||||
Discount rate | [1] | 3.00% | 3.00% | ||
Current medical cost trend rate | [1] | [1] | 5.71% | ||
Ultimate medical cost trend rate | [1] | [1] | 5.00% | ||
Year trend rate declines to ultimate | [1] | [1] | 2,017 | ||
[1] | N/A |
Other Non-Operating Income (E67
Other Non-Operating Income (Expense), Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Other Non-Operating Income (Expense), Net [Abstract] | |||||
Interest and dividend income | $ 91 | $ 153 | $ 151 | ||
Equity income (loss) from joint ventures | [1] | (602) | 2,029 | 976 | |
Gain (loss) on foreign exchange | 950 | (276) | (719) | ||
Write off of deferred financing costs | 0 | 0 | (773) | ||
Other non-operating income, net | 158 | 153 | 145 | ||
Total other non-operating income (expense), net | $ 597 | $ 2,059 | $ (220) | ||
Orange Electronic Co., Ltd [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Impairment charges | $ 1,800 | ||||
[1] | Year ended December 31, 2017 includes a noncash impairment charge of approximately $1.8 million related to our minority interest investment in Orange Electronic Co., Ltd. (See Note 8 for additional information). |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Current [Abstract] | |||||
Domestic | $ 30,742 | $ 33,156 | $ 22,943 | ||
Foreign | 3,139 | 3,628 | 4,324 | ||
Total current | 33,881 | 36,784 | 27,267 | ||
Deferred [Abstract] | |||||
Domestic | 18,833 | (387) | (1,210) | ||
Foreign | 98 | (239) | (74) | ||
Total deferred | 18,931 | (626) | (1,284) | ||
Total income tax provision | 52,812 | 36,158 | 25,983 | ||
Reconciliations Between Taxes at the U.S. Federal Income Tax Rate and Taxes at our Effective Income Tax Rate on Earnings [Abstract] | |||||
U.S. Federal income tax rate of 35% | 33,755 | 34,500 | 25,936 | ||
Increase (decrease) in tax rate resulting from [Abstract] | |||||
State and local income taxes, net of federal income tax benefit | 3,138 | 2,944 | 1,857 | ||
Income tax (tax benefits) attributable to foreign income | (149) | (887) | (1,705) | ||
Other non-deductible items, net | (1,319) | (464) | (192) | ||
Impact of Tax Cuts and Jobs Act | 17,515 | 0 | 0 | ||
Change in valuation allowance | (128) | 65 | 87 | ||
Total income tax provision | $ 52,812 | 36,158 | 25,983 | ||
U.S. Federal income tax rate | 35.00% | ||||
Change in tax rate, Deferred tax asset, Existing Income Tax Expense | $ 16,100 | ||||
Transition tax for accumulated foreign earnings, Provisional income tax expense | 1,400 | ||||
Deferred tax assets [Abstract] | |||||
Inventories | 11,498 | $ 11,498 | 18,323 | ||
Allowance for customer returns | 8,678 | 8,678 | 15,092 | ||
Postretirement benefits | 170 | 170 | 607 | ||
Allowance for doubtful accounts | 1,181 | 1,181 | 1,589 | ||
Accrued salaries and benefits | 8,500 | 8,500 | 11,482 | ||
Capital loss | 154 | 154 | 234 | ||
Tax credit carryforwards | 272 | 272 | 420 | ||
Deferred gain on building sale | 55 | 55 | 489 | ||
Accrued asbestos liabilities | 8,886 | 8,886 | 12,638 | ||
Deferred tax assets, gross | 39,394 | 39,394 | 60,874 | ||
Valuation allowance | (377) | (377) | (505) | ||
Total deferred tax assets | 39,017 | 39,017 | 60,369 | ||
Deferred tax liabilities [Abstract] | |||||
Depreciation | 5,495 | 5,495 | 7,410 | ||
Other | 1,102 | 1,102 | 1,832 | ||
Total deferred tax liabilities | 6,597 | 6,597 | 9,242 | ||
Net deferred tax assets | 32,420 | 32,420 | 51,127 | ||
Valuation allowance, remaining amount | 400 | 400 | |||
Income Tax Contingency [Abstract] | |||||
Recognized uncertain tax positions | 0 | 0 | $ 0 | $ 0 | |
Plan [Member] | |||||
Increase (decrease) in tax rate resulting from [Abstract] | |||||
U.S. Federal income tax rate | 21.00% | ||||
Foreign Tax Authority [Member] | |||||
Operating Loss Carryforwards [Line Items] | |||||
Operating Loss Carryforwards | 32,400 | $ 32,400 | |||
Operating Loss Carryforwards, Expiration Dates | Dec. 31, 2020 | ||||
Tax credit carryforward | $ 300 | $ 300 | |||
Foreign Tax Authority [Member] | Minimum [Member] | |||||
Income Tax Contingency [Abstract] | |||||
Period for statutes of limitations | 2 years | ||||
Foreign Tax Authority [Member] | Maximum [Member] | |||||
Income Tax Contingency [Abstract] | |||||
Period for statutes of limitations | 6 years | ||||
Canada Tax Authority [Member] | |||||
Income Tax Contingency [Abstract] | |||||
Open Tax Years | 2,013 | ||||
Hong Kong Tax Authority [Member] | |||||
Income Tax Contingency [Abstract] | |||||
Open Tax Years | 2,012 | ||||
Mexican Tax Authority [Member] | |||||
Income Tax Contingency [Abstract] | |||||
Open Tax Years | 2,013 | ||||
Poland Tax Authority [Member] | |||||
Income Tax Contingency [Abstract] | |||||
Open Tax Years | 2,012 |
Industry Segment and Geograph69
Industry Segment and Geographic Data (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2017USD ($)CustomerSegment | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |||||
Segment Reporting Information [Line Items] | |||||||||||||||
Number of reportable operating segments | Segment | 2 | ||||||||||||||
Financial information for reportable segment [Abstract] | |||||||||||||||
Net sales | $ 239,978 | $ 281,058 | $ 312,729 | $ 282,378 | $ 229,799 | $ 300,795 | $ 288,977 | $ 238,911 | $ 1,116,143 | [1] | $ 1,058,482 | [1] | $ 971,975 | [1] | |
Depreciation and amortization | 23,916 | 20,457 | 17,637 | ||||||||||||
Operating income (loss) | 98,174 | 98,067 | 75,860 | ||||||||||||
Investment in equity affiliates | 31,184 | 19,924 | 31,184 | 19,924 | 20,622 | ||||||||||
Capital expenditures | 24,442 | 20,921 | 18,047 | ||||||||||||
Total assets | 787,567 | 768,697 | 787,567 | 768,697 | 681,064 | ||||||||||
Reconciliation of segment operating income to net earnings [Abstract] | |||||||||||||||
Operating income | 98,174 | 98,067 | 75,860 | ||||||||||||
Other non-operating income (expense) | 597 | 2,059 | (220) | ||||||||||||
Interest expense | 2,329 | 1,556 | 1,537 | ||||||||||||
Earnings from continuing operations before taxes | 96,442 | 98,570 | 74,103 | ||||||||||||
Income tax expense | 52,812 | 36,158 | 25,983 | ||||||||||||
Earnings from continuing operations | (8,106) | 17,108 | 18,261 | 16,367 | 8,839 | 21,055 | 19,862 | 12,656 | 43,630 | 62,412 | 48,120 | ||||
Discontinued operations, net of tax | (541) | (3,983) | (497) | (633) | (487) | (425) | (618) | (452) | (5,654) | (1,982) | (2,102) | ||||
Net earnings | (8,647) | 13,125 | 17,764 | 15,734 | 8,352 | 20,630 | 19,244 | 12,204 | 37,976 | 60,430 | 46,018 | ||||
Revenues [Abstract] | |||||||||||||||
Revenues | 239,978 | $ 281,058 | $ 312,729 | $ 282,378 | 229,799 | $ 300,795 | $ 288,977 | $ 238,911 | 1,116,143 | [1] | 1,058,482 | [1] | 971,975 | [1] | |
Long-lived assets [Abstract] | |||||||||||||||
Long-lived assets | 259,056 | 243,349 | $ 259,056 | $ 243,349 | $ 190,586 | ||||||||||
Customer Concentration Risk [Member] | |||||||||||||||
Long-lived assets [Abstract] | |||||||||||||||
Number of largest individual customers | Customer | 5 | ||||||||||||||
Net Sales [Member] | Customer Concentration Risk [Member] | |||||||||||||||
Long-lived assets [Abstract] | |||||||||||||||
Concentration risk, percentage | 70.00% | 70.00% | 68.00% | ||||||||||||
Net Sales [Member] | Customer Concentration Risk [Member] | O' Reilly Automotive, Inc. [Member] | |||||||||||||||
Long-lived assets [Abstract] | |||||||||||||||
Concentration risk, percentage | 21.00% | ||||||||||||||
Net Sales [Member] | Customer Concentration Risk [Member] | Advance Auto Parts, Inc. [Member] | |||||||||||||||
Long-lived assets [Abstract] | |||||||||||||||
Concentration risk, percentage | 17.00% | ||||||||||||||
Net Sales [Member] | Customer Concentration Risk [Member] | NAPA Auto Parts [Member] | |||||||||||||||
Long-lived assets [Abstract] | |||||||||||||||
Concentration risk, percentage | 16.00% | ||||||||||||||
Net Sales [Member] | Customer Concentration Risk [Member] | AutoZone, Inc [Member] | |||||||||||||||
Long-lived assets [Abstract] | |||||||||||||||
Concentration risk, percentage | 10.00% | ||||||||||||||
United States [Member] | |||||||||||||||
Financial information for reportable segment [Abstract] | |||||||||||||||
Net sales | $ 996,433 | $ 952,019 | $ 881,206 | ||||||||||||
Revenues [Abstract] | |||||||||||||||
Revenues | 996,433 | 952,019 | 881,206 | ||||||||||||
Long-lived assets [Abstract] | |||||||||||||||
Long-lived assets | 202,875 | 204,592 | 202,875 | 204,592 | 155,438 | ||||||||||
Canada [Member] | |||||||||||||||
Financial information for reportable segment [Abstract] | |||||||||||||||
Net sales | 56,575 | 53,324 | 48,072 | ||||||||||||
Revenues [Abstract] | |||||||||||||||
Revenues | 56,575 | 53,324 | 48,072 | ||||||||||||
Long-lived assets [Abstract] | |||||||||||||||
Long-lived assets | 2,017 | 1,344 | 2,017 | 1,344 | 1,190 | ||||||||||
Mexico [Member] | |||||||||||||||
Financial information for reportable segment [Abstract] | |||||||||||||||
Net sales | 24,521 | 24,429 | 14,707 | ||||||||||||
Revenues [Abstract] | |||||||||||||||
Revenues | 24,521 | 24,429 | 14,707 | ||||||||||||
Long-lived assets [Abstract] | |||||||||||||||
Long-lived assets | 4,449 | 3,877 | 4,449 | 3,877 | 1,012 | ||||||||||
Europe [Member] | |||||||||||||||
Financial information for reportable segment [Abstract] | |||||||||||||||
Net sales | 14,088 | 14,703 | 16,305 | ||||||||||||
Revenues [Abstract] | |||||||||||||||
Revenues | 14,088 | 14,703 | 16,305 | ||||||||||||
Long-lived assets [Abstract] | |||||||||||||||
Long-lived assets | 18,530 | 13,612 | 18,530 | 13,612 | 12,324 | ||||||||||
Other Foreign [Member] | |||||||||||||||
Financial information for reportable segment [Abstract] | |||||||||||||||
Net sales | 24,526 | 14,007 | 11,685 | ||||||||||||
Revenues [Abstract] | |||||||||||||||
Revenues | 24,526 | 14,007 | 11,685 | ||||||||||||
Long-lived assets [Abstract] | |||||||||||||||
Long-lived assets | 31,185 | 19,924 | 31,185 | 19,924 | 20,622 | ||||||||||
Intersegment Eliminations [Member] | |||||||||||||||
Financial information for reportable segment [Abstract] | |||||||||||||||
Net sales | 0 | 0 | 0 | ||||||||||||
Revenues [Abstract] | |||||||||||||||
Revenues | 0 | 0 | 0 | ||||||||||||
Engine Management [Member] | Reportable Segments [Member] | |||||||||||||||
Financial information for reportable segment [Abstract] | |||||||||||||||
Net sales | [1] | 829,413 | 765,539 | 698,021 | |||||||||||
Depreciation and amortization | 17,981 | 15,008 | 12,256 | ||||||||||||
Operating income (loss) | 97,403 | 101,529 | 88,007 | ||||||||||||
Investment in equity affiliates | 4,162 | 6,221 | 4,162 | 6,221 | 6,430 | ||||||||||
Capital expenditures | 17,750 | 14,202 | 13,038 | ||||||||||||
Total assets | 527,200 | 506,625 | 527,200 | 506,625 | 413,102 | ||||||||||
Reconciliation of segment operating income to net earnings [Abstract] | |||||||||||||||
Operating income | 97,403 | 101,529 | 88,007 | ||||||||||||
Revenues [Abstract] | |||||||||||||||
Revenues | [1] | 829,413 | 765,539 | 698,021 | |||||||||||
Engine Management [Member] | Intersegment Eliminations [Member] | |||||||||||||||
Financial information for reportable segment [Abstract] | |||||||||||||||
Net sales | 24,995 | 22,268 | 20,178 | ||||||||||||
Revenues [Abstract] | |||||||||||||||
Revenues | 24,995 | 22,268 | 20,178 | ||||||||||||
Engine Management [Member] | Ignition, Emission and Fuel System Parts [Member] | Reportable Segments [Member] | |||||||||||||||
Financial information for reportable segment [Abstract] | |||||||||||||||
Net sales | [1] | 657,287 | 616,523 | 598,161 | |||||||||||
Revenues [Abstract] | |||||||||||||||
Revenues | [1] | 657,287 | 616,523 | 598,161 | |||||||||||
Engine Management [Member] | Wire and Cable [Member] | Reportable Segments [Member] | |||||||||||||||
Financial information for reportable segment [Abstract] | |||||||||||||||
Net sales | [1] | 172,126 | 149,016 | 99,860 | |||||||||||
Revenues [Abstract] | |||||||||||||||
Revenues | [1] | 172,126 | 149,016 | 99,860 | |||||||||||
Temperature Control [Member] | Reportable Segments [Member] | |||||||||||||||
Financial information for reportable segment [Abstract] | |||||||||||||||
Net sales | [1] | 279,127 | 283,740 | 264,478 | |||||||||||
Depreciation and amortization | 4,373 | 4,287 | 4,329 | ||||||||||||
Operating income (loss) | 19,609 | 17,563 | 6,382 | ||||||||||||
Investment in equity affiliates | 27,022 | 13,703 | 27,022 | 13,703 | 14,192 | ||||||||||
Capital expenditures | 5,151 | 3,652 | 3,027 | ||||||||||||
Total assets | 177,006 | 171,136 | 177,006 | 171,136 | 177,201 | ||||||||||
Reconciliation of segment operating income to net earnings [Abstract] | |||||||||||||||
Operating income | 19,609 | 17,563 | 6,382 | ||||||||||||
Revenues [Abstract] | |||||||||||||||
Revenues | [1] | 279,127 | 283,740 | 264,478 | |||||||||||
Temperature Control [Member] | Intersegment Eliminations [Member] | |||||||||||||||
Financial information for reportable segment [Abstract] | |||||||||||||||
Net sales | 7,334 | 7,293 | 6,542 | ||||||||||||
Revenues [Abstract] | |||||||||||||||
Revenues | 7,334 | 7,293 | 6,542 | ||||||||||||
Temperature Control [Member] | Compressors [Member] | Reportable Segments [Member] | |||||||||||||||
Financial information for reportable segment [Abstract] | |||||||||||||||
Net sales | [1] | 148,377 | 148,623 | 127,861 | |||||||||||
Revenues [Abstract] | |||||||||||||||
Revenues | [1] | 148,377 | 148,623 | 127,861 | |||||||||||
Temperature Control [Member] | Other Climate Control Parts [Member] | Reportable Segments [Member] | |||||||||||||||
Financial information for reportable segment [Abstract] | |||||||||||||||
Net sales | [1] | 130,750 | 135,117 | 136,617 | |||||||||||
Revenues [Abstract] | |||||||||||||||
Revenues | [1] | 130,750 | 135,117 | 136,617 | |||||||||||
Other [Member] | |||||||||||||||
Financial information for reportable segment [Abstract] | |||||||||||||||
Net sales | [1] | 7,603 | 9,203 | 9,476 | |||||||||||
Depreciation and amortization | 1,562 | 1,162 | 1,052 | ||||||||||||
Operating income (loss) | (18,838) | (21,025) | (18,529) | ||||||||||||
Investment in equity affiliates | 0 | 0 | 0 | 0 | 0 | ||||||||||
Capital expenditures | 1,541 | 3,067 | 1,982 | ||||||||||||
Total assets | $ 83,361 | $ 90,936 | 83,361 | 90,936 | 90,761 | ||||||||||
Reconciliation of segment operating income to net earnings [Abstract] | |||||||||||||||
Operating income | (18,838) | (21,025) | (18,529) | ||||||||||||
Revenues [Abstract] | |||||||||||||||
Revenues | [1] | 7,603 | 9,203 | 9,476 | |||||||||||
Other [Member] | Intersegment Eliminations [Member] | |||||||||||||||
Financial information for reportable segment [Abstract] | |||||||||||||||
Net sales | (32,329) | (29,561) | (26,720) | ||||||||||||
Revenues [Abstract] | |||||||||||||||
Revenues | $ (32,329) | $ (29,561) | $ (26,720) | ||||||||||||
[1] | Segment and product line net sales include intersegment sales in our Engine Management and Temperature Control segments. |
Commitments and Contingencies70
Commitments and Contingencies (Details) $ in Thousands | 12 Months Ended | 196 Months Ended | ||
Dec. 31, 2017USD ($)OfficerClaim | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2017USD ($)Claim | |
Loss Contingencies [Line Items] | ||||
Total rent expense | $ 11,954 | $ 10,171 | $ 9,756 | |
Future minimum rental payments under operating leases [Abstract] | ||||
2,018 | 9,485 | $ 9,485 | ||
2,019 | 8,078 | 8,078 | ||
2,020 | 6,990 | 6,990 | ||
2,021 | 6,355 | 6,355 | ||
2,022 | 5,364 | 5,364 | ||
Thereafter | 3,932 | 3,932 | ||
Total | 40,204 | 40,204 | ||
Warranty expense | 94,400 | 99,100 | 94,600 | |
Changes in product warranties [Roll forward] | ||||
Balance, beginning of period | 24,072 | 23,395 | ||
Liabilities accrued for current year sales | 94,367 | 99,092 | ||
Settlements of warranty claims | (97,510) | (98,415) | ||
Balance, end of period | $ 20,929 | 24,072 | 23,395 | 20,929 |
Number of key officers | Officer | 1 | |||
Financial Standby Letter of Credit [Member] | ||||
Changes in product warranties [Roll forward] | ||||
Outstanding letters of credit with certain vendors | $ 5,300 | $ 5,300 | ||
Real Estate [Member] | ||||
Loss Contingencies [Line Items] | ||||
Total rent expense | 8,983 | 7,550 | 7,218 | |
Other [Member] | ||||
Loss Contingencies [Line Items] | ||||
Total rent expense | $ 2,971 | $ 2,621 | $ 2,538 | |
Asbestos [Member] | ||||
Changes in product warranties [Roll forward] | ||||
Pending claims, approximate number | Claim | 1,530 | 1,530 | ||
Payment for settled claims | $ 23,800 | |||
Increase for low end of range | $ 4,200 | |||
Increase for high end of range | 6,300 | |||
Asbestos [Member] | Minimum [Member] | ||||
Changes in product warranties [Roll forward] | ||||
Range of possible loss | 35,200 | 35,200 | ||
Asbestos [Member] | Maximum [Member] | ||||
Changes in product warranties [Roll forward] | ||||
Range of possible loss | 54,000 | 54,000 | ||
Asbestos [Member] | Discontinued Operations [Member] | ||||
Changes in product warranties [Roll forward] | ||||
Incremental pre-tax provision | 6,000 | |||
Asbestos [Member] | Discontinued Operations [Member] | Minimum [Member] | ||||
Changes in product warranties [Roll forward] | ||||
Range of possible loss | 44,300 | 44,300 | ||
Asbestos [Member] | Discontinued Operations [Member] | Maximum [Member] | ||||
Changes in product warranties [Roll forward] | ||||
Range of possible loss | $ 79,600 | $ 79,600 |
Quarterly Financial Data (Una71
Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||||
Selected quarterly financial information [Abstract] | ||||||||||||||
Net sales | $ 239,978 | $ 281,058 | $ 312,729 | $ 282,378 | $ 229,799 | $ 300,795 | $ 288,977 | $ 238,911 | $ 1,116,143 | [1] | $ 1,058,482 | [1] | $ 971,975 | [1] |
Gross profit | 69,345 | 82,535 | 90,666 | 84,110 | 66,771 | 95,644 | 87,076 | 72,996 | 326,656 | 322,487 | 280,988 | |||
Earnings (loss) from continuing operations | (8,106) | 17,108 | 18,261 | 16,367 | 8,839 | 21,055 | 19,862 | 12,656 | 43,630 | 62,412 | 48,120 | |||
Loss from discontinued operations, net of taxes | (541) | (3,983) | (497) | (633) | (487) | (425) | (618) | (452) | (5,654) | (1,982) | (2,102) | |||
Net earnings | $ (8,647) | $ 13,125 | $ 17,764 | $ 15,734 | $ 8,352 | $ 20,630 | $ 19,244 | $ 12,204 | $ 37,976 | $ 60,430 | $ 46,018 | |||
Net earnings (loss) from continuing operations per common share [Abstract] | ||||||||||||||
Basic (in dollars per share) | $ (0.36) | $ 0.75 | $ 0.80 | $ 0.72 | $ 0.39 | $ 0.93 | $ 0.87 | $ 0.56 | $ 1.92 | $ 2.75 | $ 2.11 | |||
Diluted (in dollars per share) | (0.36) | 0.74 | 0.78 | 0.70 | 0.38 | 0.91 | 0.86 | 0.55 | 1.88 | 2.70 | 2.08 | |||
Net earnings (loss) per common share [Abstract] | ||||||||||||||
Basic (in dollars per share) | (0.38) | 0.58 | 0.78 | 0.69 | 0.37 | 0.91 | 0.85 | 0.54 | 1.67 | 2.66 | 2.02 | |||
Diluted (in dollars per share) | $ (0.38) | $ 0.57 | $ 0.76 | $ 0.67 | $ 0.36 | $ 0.89 | $ 0.84 | $ 0.53 | $ 1.64 | $ 2.62 | $ 1.99 | |||
[1] | Segment and product line net sales include intersegment sales in our Engine Management and Temperature Control segments. |
Schedule II Valuation and Qua72
Schedule II Valuation and Qualifying Accounts (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Valuation and Qualifying Accounts [Roll Forward] | ||||
Balance at beginning of year | $ 4,425,000 | $ 4,246,000 | $ 6,369,000 | |
Charged to costs and expenses | 11,634,000 | 10,988,000 | 13,243,000 | |
Other | 0 | 0 | 0 | |
Deductions | 11,092,000 | 10,809,000 | 15,366,000 | |
Balance at end of year | 4,967,000 | 4,425,000 | 4,246,000 | |
Allowance for doubtful accounts receivable, pre-tax charge | 3,514,000 | |||
Allowance for Doubtful Accounts [Member] | ||||
Valuation and Qualifying Accounts [Roll Forward] | ||||
Balance at beginning of year | 3,353,000 | 3,201,000 | 4,894,000 | |
Charged to costs and expenses | 970,000 | 949,000 | 3,371,000 | [1] |
Other | 0 | 0 | 0 | |
Deductions | 499,000 | 797,000 | 5,064,000 | |
Balance at end of year | 3,824,000 | 3,353,000 | 3,201,000 | |
Allowance for Discounts [Member] | ||||
Valuation and Qualifying Accounts [Roll Forward] | ||||
Balance at beginning of year | 1,072,000 | 1,045,000 | 1,475,000 | |
Charged to costs and expenses | 10,664,000 | 10,039,000 | 9,872,000 | |
Other | 0 | 0 | 0 | |
Deductions | 10,593,000 | 10,012,000 | 10,302,000 | |
Balance at end of year | 1,143,000 | 1,072,000 | 1,045,000 | |
Allowance for Sales Returns [Member] | ||||
Valuation and Qualifying Accounts [Roll Forward] | ||||
Balance at beginning of year | 40,176,000 | 38,812,000 | 30,621,000 | |
Charged to costs and expenses | 137,416,000 | 138,407,000 | 133,355,000 | |
Other | 0 | 0 | 0 | |
Deductions | 141,676,000 | 137,043,000 | 125,164,000 | |
Balance at end of year | $ 35,916,000 | $ 40,176,000 | $ 38,812,000 | |
[1] | Includes a net $3,514,000 charge relating to one of our customers that filed a petition for bankruptcy in January 2016. |