Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Feb. 17, 2023 | Jun. 30, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2022 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Document Transition Report | false | ||
Entity File Number | 001-04743 | ||
Entity Registrant Name | Standard Motor Products, Inc. | ||
Entity Central Index Key | 0000093389 | ||
Entity Incorporation, State or Country Code | NY | ||
Entity Tax Identification Number | 11-1362020 | ||
Entity Address, Address Line One | 37-18 Northern Blvd. | ||
Entity Address, City or Town | Long Island City | ||
Entity Address, State or Province | NY | ||
Entity Address, Postal Zip Code | 11101 | ||
City Area Code | 718 | ||
Local Phone Number | 392-0200 | ||
Title of 12(b) Security | Common Stock, par value $2.00 per share | ||
Trading Symbol | SMP | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 872,058,761 | ||
Entity Common Stock, Shares Outstanding | 21,588,959 | ||
Auditor Name | KPMG LLP | ||
Auditor Location | New York, New York | ||
Auditor Firm ID | 185 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |||
CONSOLIDATED STATEMENTS OF OPERATIONS [Abstract] | |||||
Net sales | [1] | $ 1,371,815 | $ 1,298,816 | $ 1,128,588 | |
Cost of sales | 989,276 | 921,885 | 791,933 | ||
Gross profit | 382,539 | 376,931 | 336,655 | ||
Selling, general and administrative expenses | 276,626 | 247,547 | 224,670 | ||
Intangible asset impairment | 0 | 0 | 2,600 | ||
Restructuring and integration expenses | 1,891 | [2] | 392 | 464 | |
Other income (expense), net | 113 | 7 | (26) | ||
Operating income | 104,135 | 128,999 | 108,895 | ||
Other non-operating income, net | 4,814 | 3,494 | 812 | ||
Interest expense | 10,617 | 2,028 | 2,328 | ||
Earnings from continuing operations before income taxes | 98,332 | 130,465 | 107,379 | ||
Provision for income taxes | 25,206 | 31,044 | 26,962 | ||
Earnings from continuing operations | 73,126 | 99,421 | 80,417 | ||
Loss from discontinued operations, net of income tax benefit of $6,216, $2,975 and $8,089 | (17,691) | (8,467) | (23,024) | ||
Net earnings | 55,435 | 90,954 | 57,393 | ||
Net earnings attributable to noncontrolling interest | 84 | 68 | 0 | ||
Net earnings attributable to SMP | [3] | 55,351 | 90,886 | 57,393 | |
Net earnings attributable to SMP | |||||
Earnings from continuing operations | 73,042 | 99,353 | 80,417 | ||
Discontinued operations | (17,691) | (8,467) | (23,024) | ||
Net earnings attributable to SMP | [3] | $ 55,351 | $ 90,886 | $ 57,393 | |
Net earnings per common share - Basic: | |||||
Earnings from continuing operations (in dollars per share) | $ 3.37 | $ 4.49 | $ 3.59 | ||
Discontinued operations (in dollars per share) | (0.82) | (0.39) | (1.02) | ||
Net earnings per common share - Basic (in dollars per share) | 2.55 | 4.1 | 2.57 | ||
Net earnings per common share - Diluted: | |||||
Earnings from continuing operations (in dollars per share) | 3.3 | 4.39 | 3.52 | ||
Discontinued operations (in dollars per share) | (0.8) | (0.37) | (1.01) | ||
Net earnings per common share - Diluted (in dollars per share) | 2.5 | 4.02 | 2.51 | ||
Dividend declared per share (in dollars per share) | $ 1.08 | $ 1 | $ 0.5 | ||
Average number of common shares (in shares) | 21,683,719 | 22,147,479 | 22,374,123 | ||
Average number of common shares and dilutive common shares (in shares) | 22,139,981 | 22,616,456 | 22,825,885 | ||
[1]Segment net sales include intersegment sales in our Engine Management and Temperature Control segments.[2]Included in restructuring and integration costs in 2022 is a $0.2 million increase in environmental cleanup costs related to ongoing monitoring and remediation in connection with the prior closure of our manufacturing operations at our Long Island City, New York location. The environmental liability has been reclassed to accrued liabilities as of December 31, 2022.[3]Throughout this Form 10-K, “SMP” refers to Standard Motor Products, Inc. and subsidiaries. |
CONSOLIDATED STATEMENTS OF OP_2
CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
CONSOLIDATED STATEMENTS OF OPERATIONS [Abstract] | |||
Income tax benefit | $ 6,216 | $ 2,975 | $ 8,089 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME [Abstract] | |||
Net earnings | $ 55,435 | $ 90,954 | $ 57,393 |
Other comprehensive income (loss), net of tax: | |||
Foreign currency translation adjustments | (8,222) | (2,462) | 2,929 |
Derivative instruments | 3,823 | 0 | 0 |
Pension and postretirement plans | (15) | (16) | (16) |
Total other comprehensive income (loss), net of tax | (4,414) | (2,478) | 2,913 |
Total comprehensive income | 51,021 | 88,476 | 60,306 |
Comprehensive income (loss) attributable to noncontrolling interest, net of tax: | |||
Net earnings | 84 | 68 | 0 |
Foreign currency translation adjustments | (113) | 15 | 0 |
Comprehensive income (loss) attributable to noncontrolling interest, net of tax | (29) | 83 | 0 |
Comprehensive income attributable to SMP | $ 51,050 | $ 88,393 | $ 60,306 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 21,150 | $ 21,755 |
Accounts receivable, less allowances for discounts and expected credit losses of $5,375 and $6,170 in 2022 and 2021, respectively | 167,638 | 180,604 |
Inventories | 528,715 | 468,755 |
Unreturned customer inventories | 19,695 | 22,268 |
Prepaid expenses and other current assets | 25,241 | 17,823 |
Total current assets | 762,439 | 711,205 |
Property, plant and equipment, net | 107,148 | 102,786 |
Operating lease right-of-use assets | 49,838 | 40,469 |
Goodwill | 132,087 | 131,652 |
Other intangibles, net | 100,504 | 106,234 |
Deferred incomes taxes | 33,658 | 36,126 |
Investments in unconsolidated affiliates | 41,745 | 44,087 |
Other assets | 27,510 | 25,402 |
Total assets | 1,254,929 | 1,197,961 |
CURRENT LIABILITIES: | ||
Current portion of revolving credit facility | 50,000 | 125,298 |
Current portion of term loan and other debt | 5,031 | 3,117 |
Accounts payable | 89,247 | 137,167 |
Sundry payables and accrued expenses | 49,990 | 57,182 |
Accrued customer returns | 37,169 | 42,412 |
Accrued core liability | 22,952 | 23,663 |
Accrued rebates | 37,381 | 42,472 |
Payroll and commissions | 31,361 | 45,058 |
Total current liabilities | 323,131 | 476,369 |
Long-term debt | 184,589 | 21 |
Noncurrent operating lease liabilities | 40,709 | 31,206 |
Other accrued liabilities | 22,157 | 25,040 |
Accrued asbestos liabilities | 63,305 | 52,698 |
Total liabilities | 633,891 | 585,334 |
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 | 105,615 | 105,377 |
Retained earnings | 564,242 | 532,319 |
Accumulated other comprehensive income | (12,470) | (8,169) |
Treasury stock - at cost (2,350,377 shares and 1,911,792 shares in 2022 and 2021, respectively) | (95,239) | (75,819) |
Total SMP stockholders' equity | 610,020 | 601,580 |
Noncontrolling Interest | 11,018 | 11,047 |
Total Stockholders' Equity | 621,038 | 612,627 |
Total liabilities and stockholders' equity | $ 1,254,929 | $ 1,197,961 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
CURRENT ASSETS: | ||
Accounts receivable, allowances for discounts and expected credit losses | $ 5,375 | $ 6,170 |
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) | 2,350,377 | 1,911,792 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net earnings | $ 55,435 | $ 90,954 | $ 57,393 |
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities: | |||
Depreciation and amortization | 28,298 | 27,243 | 26,323 |
Amortization of deferred financing cost | 421 | 228 | 228 |
Increase (decrease) to allowance for expected credit losses | (757) | 451 | 396 |
Increase (decrease) to inventory reserves | 6,035 | (585) | 5,962 |
Customer bankruptcy charge | 7,002 | 0 | 0 |
Intangible asset impairment | 0 | 0 | 2,600 |
Equity income from joint ventures | (3,464) | (3,295) | (820) |
Employee Stock Ownership Plan allocation | 2,296 | 2,513 | 2,301 |
Stock-based compensation | 8,178 | 9,479 | 8,101 |
(Increase) in deferred income taxes | (713) | (1,801) | (8,334) |
Increase in tax valuation allowance | 1,068 | 466 | 864 |
Loss on discontinued operations, net of tax | 17,691 | 8,467 | 23,024 |
Change in assets and liabilities: | |||
(Increase) decrease in accounts receivable | 6,916 | 28,464 | (71,933) |
(Increase) decrease in inventories | (67,495) | (107,609) | 17,984 |
(Increase) in prepaid expenses and other current assets | (5,509) | (843) | (370) |
Increase (decrease) in accounts payable | (48,604) | 33,046 | 7,428 |
Increase (decrease) in sundry payables and accrued expenses | (29,089) | 13,430 | 40,651 |
Net changes in other assets and liabilities | (5,242) | (15,044) | (13,902) |
Net cash provided by (used in) operating activities | (27,533) | 85,564 | 97,896 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Acquisitions of and investments in businesses | (1,934) | (125,419) | 0 |
Capital expenditures | (25,956) | (25,875) | (17,820) |
Other investing activities | 73 | 45 | 21 |
Net cash used in investing activities | (27,817) | (151,249) | (17,799) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Borrowings under term loan | 100,000 | 0 | 0 |
Repayments of term loan | (2,500) | 0 | 0 |
Net borrowings (repayments) under revolving credit facilities | 16,702 | 115,298 | (42,460) |
Net borrowings (repayments) of other debt and capital lease obligations | (2,895) | 3,048 | (4,248) |
Purchase of treasury stock | (29,656) | (26,862) | (13,482) |
Payments of debt issuance costs | (2,128) | 0 | 0 |
Increase (decrease) in overdraft balances | (595) | 247 | (108) |
Dividends paid | (23,428) | (22,179) | (11,218) |
Dividends paid to noncontrolling interest | 0 | (540) | 0 |
Net cash provided by (used in) financing activities | 55,500 | 69,012 | (71,516) |
Effect of exchange rate changes on cash | (755) | (1,060) | 535 |
Net increase (decrease) in cash and cash equivalents | (605) | 2,267 | 9,116 |
CASH AND CASH EQUIVALENTS at beginning of year | 21,755 | 19,488 | 10,372 |
CASH AND CASH EQUIVALENTS at end of year | 21,150 | 21,755 | 19,488 |
Cash paid during the year for: | |||
Interest | 9,892 | 1,721 | 2,187 |
Income taxes | $ 25,015 | $ 26,323 | $ 24,640 |
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 (Loss) [Member] | Treasury Stock [Member] | Total SMP [Member] | Non-controlling Interest [Member] | Total |
Balance at beginning of period at Dec. 31, 2019 | $ 47,872 | $ 102,742 | $ 417,437 | $ (8,589) | $ (55,234) | $ 504,228 | $ 0 | $ 504,228 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net earnings | 0 | 0 | 57,393 | 0 | 0 | 57,393 | 0 | 57,393 |
Other comprehensive income (loss), net of tax | 0 | 0 | 0 | 2,913 | 0 | 2,913 | 0 | 2,913 |
Cash dividends paid | 0 | 0 | (11,218) | 0 | 0 | (11,218) | 0 | (11,218) |
Purchase of treasury stock | 0 | 0 | 0 | 0 | (13,482) | (13,482) | 0 | (13,482) |
Stock-based compensation | 0 | 1,712 | 0 | 0 | 6,389 | 8,101 | 0 | 8,101 |
Employee Stock Ownership Plan | 0 | 630 | 0 | 0 | 1,671 | 2,301 | 0 | 2,301 |
Balance at end of period at Dec. 31, 2020 | 47,872 | 105,084 | 463,612 | (5,676) | (60,656) | 550,236 | 0 | 550,236 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Noncontrolling interest in business acquired | 0 | 0 | 0 | 0 | 0 | 0 | 11,504 | 11,504 |
Net earnings | 0 | 0 | 90,886 | 0 | 0 | 90,886 | 68 | 90,954 |
Other comprehensive income (loss), net of tax | 0 | 0 | 0 | (2,493) | 0 | (2,493) | 15 | (2,478) |
Cash dividends paid | 0 | 0 | (22,179) | 0 | 0 | (22,179) | 0 | (22,179) |
Purchase of treasury stock | 0 | 0 | 0 | 0 | (26,862) | (26,862) | 0 | (26,862) |
Dividends paid to noncontrolling interest | 0 | 0 | 0 | 0 | 0 | 0 | (540) | (540) |
Stock-based compensation | 0 | 159 | 0 | 0 | 9,320 | 9,479 | 0 | 9,479 |
Employee Stock Ownership Plan | 0 | 134 | 0 | 0 | 2,379 | 2,513 | 0 | 2,513 |
Balance at end of period at Dec. 31, 2021 | 47,872 | 105,377 | 532,319 | (8,169) | (75,819) | 601,580 | 11,047 | 612,627 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net earnings | 0 | 0 | 55,351 | 0 | 0 | 55,351 | 84 | 55,435 |
Other comprehensive income (loss), net of tax | 0 | 0 | 0 | (4,301) | 0 | (4,301) | (113) | (4,414) |
Cash dividends paid | 0 | 0 | (23,428) | 0 | 0 | (23,428) | 0 | (23,428) |
Purchase of treasury stock | 0 | 0 | 0 | 0 | (29,656) | (29,656) | 0 | (29,656) |
Stock-based compensation | 0 | (131) | 0 | 0 | 8,309 | 8,178 | 0 | 8,178 |
Employee Stock Ownership Plan | 0 | 369 | 0 | 0 | 1,927 | 2,296 | 0 | 2,296 |
Balance at end of period at Dec. 31, 2022 | $ 47,872 | $ 105,615 | $ 564,242 | $ (12,470) | $ (95,239) | $ 610,020 | $ 11,018 | $ 621,038 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY [Abstract] | |||
Cash dividends paid (in dollars per share) | $ 1.08 | $ 1 | $ 0.5 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
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,” “SMP,” or the “Company”) is a leading manufacturer and distributor of premium replacement parts utilized in the maintenance, repair and service of vehicles in the automotive aftermarket industry with a complementary focus on specialized equipments parts for manufacturers across multiple industries around the world. The consolidated financial statements include our accounts and all domestic and international companies in which we have more than a 50% equity ownership, except in instances where the minority shareholder maintains substantive participating rights, in which case we follow the equity method of accounting. In instances where we have more than a 50% equity ownership and the minority shareholder does not maintain substantive participating rights, our consolidated financial statements include the accounts of the company on a consolidated basis with its net income and equity reported at amounts attributable to both our equity position and that of the noncontrolling interest. 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 The preparation of consolidated financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amount of assets and liabilities, the disclosure of contingent assets and liabilities at the date of our consolidated financial statements, and the reported amounts of revenue and expenses during the reporting periods. We have made a number of estimates and assumptions in the preparation of these consolidated financial statements. 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 estimates, or in the assumptions that we use in calculating the estimates, the uncertain future effects, if any, of disruptions in the supply chain caused by the COVID-19 pandemic, Russia’s invasion of the Ukraine and resultant sanctions imposed by the U.S. and other governments, future increases in interest rates, inflation, macroeconomic uncertainty, and other unforeseen changes in the industry, or business, could materially impact the estimates, and may have a material adverse effect on our business, financial condition and results of operations. Some of the more significant estimates include allowances for expected credit losses, 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, asbestos, environmental and litigation matters, valuation of deferred tax assets, share based compensation and sales returns and other allowances. Reclassification Certain prior period amounts in the accompanying consolidated financial statements and related notes have been reclassified to conform to the 2022 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 Expected Credit Losses 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, supportable forecasts, aging analysis, and specific account evaluations. When a receivable balance is known to be uncollectible, it is written off against the allowance for expected credit losses. In January 2023, one of our customers filed a petition for bankruptcy. In connection with the bankruptcy filing, we evaluated our potential risk and exposure as related to our outstanding accounts receivable balance from the customer as of December 31, 2022, and estimated our anticipated recovery. As a result of our evaluation, we recorded a $7 million pre-tax charge during the year ended December 31, 2022 to reduce our accounts receivable balance to our estimated recovery. We will continue to monitor the circumstances surrounding the bankruptcy in determining whether additional provisions may be necessary. 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. The historical volatility of such estimates has been minimal. We maintain provisions for inventory reserves of $42.5 million and $46.2 million as of December 31, 2022 and 2021, 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, at the time of sale of air conditioning compressors, diesel injectors, and diesel pumps, we estimate the core expected to be returned from the customer and record the estimated return as unreturned customer inventory. In addition, many of our customers can return inventory to us based upon customer warranty and overstock arrangements within customer specific limits. At the time products are sold, we accrue a liability for product warranties and overstock returns and record as unreturned customer inventory our estimate of anticipated customer returns. Estimates are based upon historical information on the nature, frequency and probability of the customer return. Unreturned core, warranty and overstock customer inventory is recorded at standard cost. Revision to these estimates is made when necessary, based upon changes in these factors. We regularly study trends of such claims. Property, Plant and Equipment Property, plant and equipment 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 Building improvements 10 to 25 years Machinery and equipment 5 to years Tools, dies and auxiliary equipment 3 to years Furniture and fixtures 3 to 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. Leases We determine if an arrangement is a lease at inception. For operating leases, we include and report operating lease right-of-use (“ROU”) assets, sundry payables and accrued expenses, and noncurrent operating lease liabilities on our consolidated balance sheet for leases with a term longer than twelve months. Finance leases are reported on our consolidated balance sheets in property, plant and equipment, current portion of other debt, and long-term debt. Operating lease ROU assets and operating lease liabilities are recognized at the lease commencement date based on the present value of the total lease payments over the lease term. Our ROU assets represent the right to use an underlying leased asset over the existing lease term, and the corresponding lease liabilities represent our obligation to make lease payments arising from the lease agreement. As most of our leases do not provide for an implicit rate, we use our secured incremental borrowing rate based on the information available when determining the present value of our lease payments. Our lease terms may include options to terminate, or extend, our lease when it is reasonably certain that we will execute the option. Lease agreements may contain lease and non-lease components, which are generally accounted for separately. Operating lease expense is recognized on a straight-line basis over the lease term. Valuation of Long-Lived and Intangible Assets and Goodwill At acquisition, we estimate and record the fair value of purchased intangible assets, which primarily consist of customer relationships, trademarks and trade names, patents, developed technology and intellectual property, and non-compete agreements. Intangible assets acquired through business combinations are subject to potential adjustments within the measurement period, which is up to one year from the acquisition date. Valuing intangible assets requires the use of significant estimates and assumptions. As related to valuing customer relationships, significant estimates and assumptions used include but are not limited to: (1) forecasted revenues attributable to existing customers; (2) forecasted earnings before interest and taxes (“EBIT”) margins; (3) customer attrition rates; and (4) the discount rate. 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 believe that the fair value of acquired identifiable net assets, including intangible assets, are based upon reasonable estimates and assumptions. 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 a quantitative impairment test would not be required. If we are unable to reach this conclusion, then we would perform a goodwill quantitative impairment test. In performing the quantitative test, the fair value of the reporting unit is compared to its carrying amount. A charge for impairment is recognized by the amount by which the reporting unit’s carrying amount exceeds its fair value, not to exceed the total amount of goodwill allocated to the reporting unit. Identifiable intangible assets having indefinite lives are reviewed for impairment on an annual basis using a methodology similar 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 intangible assets having definite lives and other long-lived assets 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. 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 our performance obligation has been satisfied and the control of products has been transferred to a customer which typically occurs upon shipment. Revenue is measured as the amount of consideration we expect to receive in exchange for the transfer of goods or providing services. The amount of consideration we receive and revenue we recognize depends on the marketing incentives, product warranty and overstock returns we offer to our customers. 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 at the time of the sale but rather carried as a core liability. At the same time, we estimate the core expected to be returned from the customer and record the estimated return as unreturned customer inventory. The liability is extinguished when a core is actually returned to us, or at period end when we estimate and recognize revenue for the core deposits not expected to be returned. 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. Product Warranty and Overstock Returns Many of our products carry a warranty ranging from a -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 of their annual purchases from us) in the event that they have overstocked their inventories. At the time products are sold, we accrue a liability for product warranties and overstock returns as a of sales based upon estimates established using historical information on the nature, frequency and average cost of the claim and the probability of the customer return. At the same time, we record an estimate of anticipated customer returns as unreturned customer inventory. Significant judgments and estimates must be made and used in connection with establishing the sales returns and other allowances in any accounting period. Revision to these estimates is made when necessary, based upon changes in these factors. We regularly study trends of such claims. 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 stock lift. New customer acquisition costs are recorded as a reduction to revenue when incurred. 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. 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. 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 as of December 31, 2022 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 as of December 31, 2022 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. During the years ended December 31, 2022, 2021 and 2020 we did not establish a liability for uncertain tax positions. 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 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 such claims. 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; and perform an actuarial evaluation in the third quarter of each year and whenever events or changes in circumstances indicate that additional provisions may be necessary. 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; (4) an analysis of our settlements and awards of asbestos-related damages to date; and (5) an analysis of closed claims with pay ratios and lag patterns in order to develop average future settlement values. 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 and awards of asbestos-related damages 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. Future legal costs are expensed as incurred and reported in earnings (loss) from discontinued operations in the accompanying statement of operations. We plan to perform an annual actuarial evaluation during the third quarter of each year for the foreseeable future 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. Concentrations of Credit Risk Financial instruments that potentially subject us to significant concentrations of credit risk consist principally of cash investments, accounts receivable and derivative financial instruments used to reduce our market risk for changes in interest rates on our variable rate borrowings. We place our cash investments with high quality financial institutions and limit the amount of credit exposure to any one institution. Derivative financial instruments used to reduce our market risk for changes in interest rates on our variable rate borrowings are entered into with high quality financial institutions, with their credit worthiness reviewed on a quarterly basis. 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. A significant portion of our net sales are concentrated from our three largest individual customers. 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. In January 2023, one of our customers filed a petition for bankruptcy. In connection with the bankruptcy filing, we evaluated our potential risk and exposure as related to our outstanding accounts receivable balance from the customer as of December 31, 2022, and estimated our anticipated recovery. As a result of our evaluation, we recorded a $7 million pre-tax charge during the year ended December 31, 2022 to reduce our accounts receivable balance to our estimated recovery. The $7 million pre-tax charge is included in selling, general and administrative expenses in our consolidated statement of operations. We will continue to monitor the circumstances surrounding the bankruptcy in determining whether additional provisions may be necessary. For further information on net sales to our three largest customers and our concentration our customer risk, see Note 21, “Industry Segment and Geographic Data.” Foreign Cash Balances Substantially all of the cash and cash equivalents, including foreign cash balances, at December 31, 2022 and 2021 were uninsured. Foreign cash balances at December 31, 2022 and 2021 were and , respectively. Derivative Instruments and Hedging Activities We occasionally use derivative financial instruments to reduce our market risk for changes in interest rates on our variable rate borrowings. Derivative financial instruments are recorded at fair value in other current and long-term assets, and other current and long-term liabilities in the consolidated balance sheets. For derivative financial instruments that have been formally designated as cash flow interest rate hedges (“interest rate swap agreements”), provided that the hedging instrument is highly effective, the entire change in the fair value of the derivative will be deferred and recorded in accumulated other comprehensive income (“AOCI”) in the consolidated balance sheets. When the underlying hedged transaction is realized (i.e., when the interest payments on the underlying borrowing are recognized in the consolidated statements of operations), the gain/loss included in AOCI is recorded in earnings and reflected on the same line as the gain/loss on the hedged item attributable to the hedged risk (i.e., interest expense). At the inception of each transaction, we formally document the hedge relationship, including the identification of the hedge instrument, the related hedged items, the effectiveness of the hedge, as well as its risk management objectives and strategies. Recently Issued Accounting Pronouncements Standards that were adopted Standard Description Date of adoption / Effective date Effects on the financial statements or other significant matters ASU - /ASU Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting These standards are intended to provide optional guidance for a limited time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. The new standards are applicable to contracts that reference LIBOR, or another reference rate, expected to be discontinued due to reference rate reform. ASU 2020-04 effective March 12, 2020 through December 31, 2022, with sunset date extended to December 31, 2024 by ASU 2022–06. During the year ended December 31, 2022, we entered into a new credit agreement and new supply chain financing arrangements that no longer used LIBOR as the reference rate. In connection with these new agreements, the adoption of the optional guidance provided in the new standards did not materially impact our accounting, consolidated financial statements and related disclosures. Standards that are not yet adopted as of December 31, 2022 There are no recently issued accounting pronouncements not yet been adopted as of December 31, 2022 that could have a material impact on our financial statements. |
Business Acquisitions and Inves
Business Acquisitions and Investments | 12 Months Ended |
Dec. 31, 2022 | |
Business Acquisitions and Investments [Abstract] | |
Business Acquisitions and Investments | 2. Business Acquisitions and Investments 2022 Increase in Equity Investment Investment in Foshan Che Yijia New Energy Technology Co., Ltd. In August 2019, we acquired an approximate 29% minority interest in Foshan Che Yijia New Energy Technology Co., Ltd. (“CYJ”) for approximately $5.1 million. CYJ is a manufacturer of automotive electric air conditioning compressors and is located in China. We determined, at that time, that due to a lack of a voting majority and other qualitative factors, we do not control the operations of CYJ and accordingly, our investment in CYJ would be accounted for under the equity method of accounting. In October 2022, we acquired an additional 3.55% equity interest in CYJ for RMB 1.7 million (approximately $242,000), increasing our minority ownership interest in CYJ from an approximate interest of 29% to 33%. The additional acquired ownership interest in CYJ was paid for in cash funded by borrowings under our Credit Agreement with JPMorgan Chase Bank, N.A., as agent. We will continue to account for our minority interest in CYJ using the equity method of accounting. 2022 Business Acquisitions Acquisition of Capital Stock of Kade Trading GmbH (“Kade”) In October 2022, we acquired 100% of the capital stock of Kade Trading GmbH (“Kade”) headquartered in Glinde, Germany for Euros 2.7 million (approximately $2.7 million), inclusive of closing balance sheet adjustments, plus a Euros 0.5 million (approximately $0.5 million) earn-out based upon Kade’s performance in 2024 and 2025. Kade is a supplier across Europe of mobile temperature control components to commercial vehicle, passenger car and specialty equipment markets and has been a distributor of CYJ products including electric compressors, hose assemblies and receiver dryers, with annual sales of approximately $6 million. The acquired Kade business, to be reported as part of our Temperature Control segment, was paid for with cash. 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 $ 3,176 Assets acquired and liabilities assumed: Receivables $ 790 Inventory 829 Other current assets (1) 1,003 Property, plant and equipment, net 63 Operating lease right-of-use assets 401 Intangible assets 2,395 Goodwill 766 Current liabilities (1,977 ) Noncurrent operating lease liabilities (328 ) Deferred income taxes (766 ) Net assets acquired $ 3,176 (1) The other current assets balance includes $1 million of cash acquired. Intangible assets acquired of $2.4 million consist of customer relationships that will be amortized on a straight-line basis over the estimated useful life of 15 years. Incremental revenues from the acquired Kade business included in our consolidated statement of operations from the acquisition date through December 31, 2022 were $1.3 million. 2021 Business Acquisitions Acquisition of Capital Stock of Stabil Operative Group GmbH (“Stabil”) In September 2021, we acquired 100% of the capital stock of Stabil Operative Group GmbH, a German company (“Stabil”), for Euros 13.7 million, or $16.3 million. Stabil is a manufacturer and distributor of a variety of components, including electronic sensors, control units, and clamping devices to the European Original Equipment (“OE”) market, serving both commercial and light vehicle applications. The acquired Stabil business was paid for with cash funded by borrowings under our revolving credit facility with JPMorgan Chase Bank, N.A., as agent, and is headquartered on the outskirts of Stuttgart, Germany with facilities in Germany and Hungary. The acquisition, reported as part of our Engine Management Segment, aligns with our strategy of expansion beyond our core aftermarket business into complementary areas, and gives us exposure to a diversified group of blue chip European commercial and light vehicle OE customers. 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 $ 16,290 Assets acquired and liabilities assumed: Receivables $ 2,852 Inventory 5,126 Other current assets (1) 1,628 Property, plant and equipment, net 1,810 Operating lease right-of-use assets 4,971 Intangible assets 5,471 Goodwill 4,827 Current liabilities (4,190 ) Noncurrent operating lease liabilities (4,454 ) Deferred income taxes (1,751 ) Net assets acquired $ 16,290 (1) The other current assets balance includes $0.9 million of cash acquired. Intangible assets acquired of $5.5 million consist of customer relationships that will be amortized on a straight-line basis over the estimated useful life of 20 years. Goodwill of $4.8 million was allocated to the Engine Management Segment. The goodwill reflects relationships, business specific knowledge and the replacement cost of an assembled workforce associated with personal reputations. The intangible assets and goodwill are not deductible for tax purposes. Incremental revenues from the acquired Stabil business included in our consolidated statement of operations for the year ended December 31, 2022 were $14.9 million. Acquisition of Capital Stock of Trumpet Holdings, Inc. (“Trombetta”) In May 2021, we acquired 100% of the capital stock of Trumpet Holdings, Inc., a Delaware corporation, (more commonly known as “Trombetta”), for $111.7 million. Trombetta is a leading provider of power switching and power management products to Original Equipment (“OE”) customers in various markets. The acquired Trombetta business was paid for in cash funded by borrowings under our revolving credit facility with JPMorgan Chase Bank, N.A., as agent, and has manufacturing facilities in Milwaukee, Wisconsin, Sheboygan Falls, Wisconsin, Tijuana, Mexico, as well as a 70% ownership in a joint venture in Hong Kong, with operations in Shanghai and Wuxi, China (“Trombetta Asia, Ltd.”). The acquisition, to be reported as part of our Engine Management Segment, aligns with our strategy of expansion into non-aftermarket parts. 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 $ 111,711 Assets acquired and liabilities assumed: Receivables $ 9,173 Inventory 12,460 Other current assets (1) 5,193 Property, plant and equipment, net 4,939 Operating lease right-of-use assets 3,847 Intangible assets 54,700 Goodwill 49,250 Current liabilities (5,072 ) Noncurrent operating lease liabilities (3,065 ) Deferred income taxes (8,210 ) Subtotal 123,215 Fair value of acquired noncontrolling interest (11,504 ) Net assets acquired $ 111,711 (1) The other current assets balance includes $4.6 million of cash acquired. Intangible assets acquired of $54.7 million consist of customer relationships of $39.4 million that will be amortized on a straight-line basis over the estimated useful life of 20 years; developed technology of $13.4 million that will be amortized on a straight-line basis over the estimated useful life of 15 years; and a trade name of $1.9 million that will be amortized on a straight-line basis over the estimated useful life of 10 years. Goodwill of $49.3 million was allocated to the Engine Management Segment. The goodwill reflects relationships, business specific knowledge and the replacement cost of an assembled workforce associated with personal reputations. The intangible assets and goodwill are not deductible for tax purposes. Incremental revenues from the acquired Trombetta business included in our consolidated statement of operations for the year ended December 31, 2022 were $27.4 million. Acquisition of Particulate Matter Sensor Business of Stoneridge, Inc. (“Soot Sensor”) In March 2021 and November 2021, we agreed to acquire certain Soot Sensor product lines from Stoneridge, Inc for $2.9 million. The acquired product lines were paid for with cash funded by borrowings under our revolving credit facility with JPMorgan Chase Bank, N.A. The assets acquired include inventory, machinery, and equipment and certain intangible assets. The product lines acquired are used to manufacture sensors used in the exhaust and emission systems of diesel engines. The product lines acquired were located in Stoneridge’s facilities in Lexington, Ohio and Tallinn, Estonia. We did not acquire these facilities, nor any of Stoneridge’s employees, and have substantially completed the relocation of the acquired inventory, machinery and equipment related to the production lines to our engine management plants in Independence, Kansas and Bialystok, Poland, respectively. The acquisition, reported as part of our Engine Management Segment, aligns with our strategy of expansion into the OE heavy duty market. Customer relationships to be acquired include Volvo, CNHi and Hino. 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 $ 2,924 Assets acquired and liabilities assumed: Inventory $ 1,032 Machinery and equipment, net 1,137 Intangible assets 755 Net assets acquired $ 2,924 Intangible assets acquired of approximately $0.8 million consist of customer relationships that will be amortized on a straight-line basis over the estimated useful life of 10 years. Incremental revenues from the acquired Soot Sensor business included in our consolidated statement of operations for the year ended December 31, 2022 were $2.3 million. |
Restructuring and Integration E
Restructuring and Integration Expense | 12 Months Ended |
Dec. 31, 2022 | |
Restructuring and Integration Expense [Abstract] | |
Restructuring and Integration Expense | 3. Restructuring and Integration Expense 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, 2021 and 2020, consisted of the following (in thousands): Workforce Reduction Other Exit Costs Total Exit activity liability at December 31 2020 $ 179 $ — $ 179 Restructuring and integration costs: Amounts provided for during 2021 — 392 392 Cash payments (100 ) (392 ) (492 ) Exit activity liability at December 31 2021 $ 79 $ — $ 79 Restructuring and integration costs: Amounts provided for during 2022 (1) 1,521 370 1,891 Cash payments (16 ) (144 ) (160 ) Reclassification of environmental and other liabilities (63 ) (226 ) (289 ) Exit activity liability at December 31 2022 $ 1,521 $ — $ 1,521 (1) Included in restructuring and integration costs in 2022 is a $0.2 million increase in environmental cleanup costs related to ongoing monitoring and remediation in connection with the prior closure of our manufacturing operations at our Long Island City, New York location. The environmental liability has been reclassed to accrued liabilities as of December 31, 2022. Restructuring Costs Cost Reduction Initiative During the fourth quarter of 2022, to further our ongoing efforts to improve operating efficiencies and reduce costs, we announced plans for a reduction in our sales force, and initiated plans to relocate certain product lines from our Independence, Kansas manufacturing facility in our Engine Management segment and from our St. Thomas, Canada manufacturing facility in our Temperature Control segment to our manufacturing facilities in Reynosa, Mexico. Total restructuring expenses related to the initiative of approximately $1.5 million were incurred during the year ended December 31, 2022 consisting of (1) expenses of approximately $0.9 million related to our sales force reduction, and (2) expenses of approximately $0.6 million consisting of employee severance related to our product line relocations. Total future restructuring costs related to the initiative and expected to be incurred are approximately $3.4 million. We anticipate that the Cost Reduction Initiative will be completed by the end of 2023. Plant Rationalization Programs The 2016 Plant Rationalization Program, which included the shutdown and sale of our Grapevine, Texas facility, and the 2017 Orlando Rationalization Program, which included the shutdown of our Orlando, Florida facility, has been completed. Cash payments made of $16,000 and $100,000 during the years ended December 31, 2022 and 2021, respectively, consists of severance payments to former employees terminated in connection with these programs. There is no remaining aggregate liability related to these programs as of December 31, 2022. Integration Costs Particulate Matter Senso r (“Soot Sensor”) Product Line Relocation In connection with our acquisitions in March 2021 and November 2021 of certain soot sensor product lines from Stoneridge, Inc., we incurred certain integration expenses in connection with the relocation of certain inventory, machinery, and equip ment from Stoneridge’s facilities in Lexington, Ohio and Tallinn, Estonia to our existing facilities in Independence, Kansas and Bialystok, Poland, respectively. Integration expenses recognized and cash payments made of $144,000 and $392,000, during the years ended December 31, 2022 and 2021, respectively, related to these relocation activities in our Engine Management segment.The soot sensor product line relocation has been substantially completed and there is no remaining aggregate liability related to the soot sensor product line relocation as of December 31, 2022. |
Sale of Receivables
Sale of Receivables | 12 Months Ended |
Dec. 31, 2022 | |
Sale of Receivables [Abstract] | |
Sale of Receivables | 4. Sale of Receivables We are party to several supply chain financing arrangements, in which we may sell certain of our customers’ trade accounts receivable to such customers’ financial institutions. We sell our undivided interests in certain of these receivables at our discretion when we determine that the cost of these arrangements 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 Pursuant to these agreements, we sold $813.7 million and $818.8 million of receivables for the years ended December 31, 2022 and 2021, respectively. Receivables presented at financial institutions and not yet collected as of December 31, 2021 were $1.3 million and remained in our accounts receivable balance as of that date. There were no receivables presented at financial institutions and not yet collected as of December 31, 2022. All receivables sold were reflected as a reduction of accounts receivable in the consolidated balance sheet at the time of sale. A charge in the amount of $32 million, $11.5 million and $12.2 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, 2022, 2021 and 2020, respectively. To the extent that these arrangements are terminated, our financial condition, results of operations, cash flows and liquidity could be adversely affected by extended payment terms, delays or failures in collecting trade accounts receivables. The utility of the supply chain financing arrangements also depends upon a benchmark reference rate for the purpose of determining the discount rate applicable to each arrangement. If the benchmark reference rate increases significantly, we may be negatively impacted as we may not be able to pass these added costs on to our customers, which could have a material and adverse effect upon our financial condition, results of operations and cash flows. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2022 | |
Inventories [Abstract] | |
Inventories | 5. Inventories December 31, 2022 December 31, 2021 (In thousands) Finished goods $ 324,362 $ 296,739 Work-in-process 14,099 16,010 Raw materials 190,254 156,006 Subtotal 528,715 468,755 Unreturned customer inventories 19,695 22,268 Total inventories $ 548,410 $ 491,023 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | 6. Property, Plant and Equipment December 31, 2022 2021 (In thousands) Land, buildings and improvements $ 42,651 $ 40,882 Machinery and equipment 166,149 159,967 Tools, dies and auxiliary equipment 67,017 63,944 Furniture and fixtures 32,084 30,688 Leasehold improvements 15,083 14,081 Construction-in-progress 23,340 21,012 Total property, plant and equipment 346,324 330,574 Less accumulated depreciation 239,176 227,788 Total property, plant and equipment, net $ 107,148 $ 102,786 Depreciation expense was $19 million in 2022, $18.2 million in 2021 and $17.8 million in 2020. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Leases | 7. Leases Quantitative Lease Disclosures We have operating and finance leases for our manufacturing facilities, warehouses, office space, automobiles, and certain equipment. Our leases have remaining lease terms of up to eleven years, some of which may include or more renewal options. We have not included any of the renewal options in our operating lease payments, as we concluded that it is not reasonably certain that we will exercise any of these renewal options. Leases with an initial term of months or less are not recorded on the balance sheet. Operating lease expense is recognized on a straight-line basis over the lease term. Finance leases are not material. The following tables provide quantitative disclosures related to our operating leases and includes all operating leases acquired from the date of the acquisition : Balance Sheet Information December 31, Assets 2022 2021 Operating lease right-of-use assets $ 49,838 $ 40,469 Liabilities Sundry payables and accrued expenses $ 10,763 $ 10,544 Noncurrent operating lease liabilities 40,709 31,206 Total operating lease liabilities $ 51,472 $ 41,750 Weighted Average Remaining Lease Term Operating leases 7 Years 5.3 Years Weighted Average Discount Rate Operating leases 3.7 % 3 % Year Ended, December 31, Expense and Cash Flow Information 2022 2021 Lease Expense Operating lease expense (a) $ 11,411 $ 10,051 Supplemental Cash Flow Information Cash Paid for the amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 11,293 $ 9,985 Right-of-use assets obtained in exchange for new lease obligations: Operating leases (b) $ 31,064 $ 20,975 (a) Excludes expenses of approximately $2.7 million and $2 million for the years ended December 31, 2022 and 2021, respectively, related to non-lease components such as maintenance, property taxes, etc., and operating lease expense for leases with an initial term of 12 months or less, which is not material. (b) Includes $21.6 million of right-of-use assets related to the lease modification and extension for our executive offices in Long Island City, New York during year ended December 31, 2022, and right-of-use assets obtained in business acquisitions of $0.4 million and $8.8 million during the years ended December 31, 2022 and 2021, respectively. Minimum Lease Payments At December 31, 2022, we are obligated to make minimum lease payments through 2033, under operating leases, which are as follows (in thousands): 2023 $ 10,956 2024 9,770 2025 7,179 2026 6,268 2027 5,383 Thereafter 20,633 Total lease payments $ 60,189 Less: Interest (8,717 ) Present value of lease liabilities $ 51,472 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Other Intangible Assets [Abstract] | |
Goodwill and Other Intangible Assets | 8. Goodwill and Other Intangible Assets Goodwill We assess the impairment of long ‑ 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 a quantitative impairment test would not be required. If we are unable to reach this conclusion, then we would perform a goodwill quantitative impairment test. In performing the quantitative test, the fair value of the reporting unit is compared to its carrying amount. A charge for impairment is recognized by the amount by which the reporting unit’s carrying amount exceeds its fair value, not to exceed the total amount of goodwill allocated to the reporting unit. In light of the negative year-over-year impact on our company’s performance in the year ended December 31, 2022 of inflationary cost increases in raw materials, labor, transportation and freight costs, and the increase in interest rates, and the recent decline in our stock price, we elected to bypass the qualitative assessment at December 31, 2022 and have decided to perform a quantitative impairment test for goodwill at both the Engine Management and Temperature Control reporting units. 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, 2022. Our December 31, 2022 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, we will need to maintain the ongoing performance of the business at current projected levels in future periods to sustain their carrying values. Changes in the carrying values of goodwill by operating segment during the years ended December 31, 2022 and 2021 are as follows (in thousands): Engine Management Temperature Control Total Balance as of December 31 2020 Goodwill $ 102,055 $ 14,270 $ 116,325 Accumulated impairment losses (38,488 ) — (38,488 ) $ 63,567 $ 14,270 $ 77,837 Activity in 2021 Acquisition of Trombetta 49,250 — 49,250 Acquisition of Stabil 4,827 — 4,827 Foreign currency exchange rate change (262 ) — (262 ) Balance as of December 31 2021 Goodwill 155,870 14,270 170,140 Accumulated impairment losses (38,488 ) — (38,488 ) $ 117,382 $ 14,270 $ 131,652 Activity in 2022 Acquisition of Kade — 766 766 Foreign currency exchange rate change (402 ) 71 (331 ) Balance as of December 31 Goodwill 155,468 15,107 170,575 Accumulated impairment losses (38,488 ) — (38,488 ) $ 116,980 $ 15,107 $ 132,087 Acquired Intangible Assets Acquired identifiable intangible assets as of December 31, 2022 and 2021 consist of: December 31, 2022 2021 (In thousands) Customer relationships $ 158,717 $ 157,020 Patents, developed technology and intellectual property 14,123 14,123 Trademarks and trade names 8,880 8,880 Non-compete agreements 3,282 3,280 Supply agreements 800 800 Leaseholds 160 160 Total acquired intangible assets 185,962 184,263 Less accumulated amortization (1) (86,945 ) (78,932 ) Net acquired intangible assets $ 99,017 $ 105,331 (1) Applies to all intangible assets, except for a related trademark/trade name totaling $2.6 million, which has an indefinite useful life and, as such, is not being amortized. Total amortization expense for acquired intangible assets was $8.6 million for the year ended December 31, 2022, $8.7 million for the year ended December 31, 2021, and $8.2 million for the year ended December 31, 2020. Based on the current estimated useful lives assigned to our intangible assets, amortization expense is estimated to be $8.5 million for 2023, $8.4 million in 2024, $8.4 million in 2025, $8.4 million in 2026 and $62.7 million in the aggregate for the years 2027 through 2041. For information related to identified intangible assets acquired in the Stabil, Trombetta, Soot Sensor and Kade acquisitions, see Note 2, “Business Acquisitions and Investments,” of the notes to our consolidated financial statements. Other Intangible Assets Other intangible assets include computer software. Computer software as of December 31, 2022 and 2021 totaled $18.7 million and , respectively |
Investments in Unconsolidated A
Investments in Unconsolidated Affiliates | 12 Months Ended |
Dec. 31, 2022 | |
Investments in Unconsolidated Affiliates [Abstract] | |
Investments in Unconsolidated Affiliates | 9. Investments in Unconsolidated Affiliates December 31, 2022 2021 (In thousands) Foshan GWOYNG SMP Vehicle Climate Control & Cooling Products Co. Ltd. $ 18,410 $ 20,692 Foshan FGD SMP Automotive Compressor Co. Ltd 16,747 16,676 Foshan Che Yijia New Energy Technology Co., Ltd. 4,098 3,990 Orange Electronic Co. Ltd 2,490 2,729 Total $ 41,745 $ 44,087 Investment in Foshan Che Yijia New Energy Technology Co., Ltd. In August we acquired an approximate minority interest in Foshan Che Yijia New Energy Technology Co., Ltd. (“CYJ”) for approximately . CYJ is a manufacturer of automotive electric air conditioning compressors and is located in China. Our minority interest in CYJ is accounted for using the equity method of accounting. In December 2021, Standard Motor Products (Hong Kong), Ltd., (“SMP HK”), a subsidiary of Standard Motor Products, Inc., entered into an unsecured loan agreement with CYJ. Under the terms of the loan agreement, CYJ shall have the right to borrow from SMP HK, as lender, up to an aggregate principal amount of $4 million, with interest calculated on the basis of simple interest of five percent (5%) per annum and a maturity date of November 30, 2023, subject to extension by SMP HK at its sole discretion. At December 31, 2022, outstanding borrowings under the loan agreement were $4 million. In October 2022, we acquired an additional 3.55% equity interest in CYJ for RMB 1.7 million (approximately $242,000), increasing our minority ownership interest in CYJ from an approximate interest of 29% to 33%. We will continue to account for our minority interest in CYJ using the equity method of accounting. During the years ended December 31, 2022 and 2021, purchases we made from CYJ were not material. Investment in Foshan FGD SMP Automotive Compressor Co. Ltd. In November 2017, we formed Foshan FGD SMP Automotive Compressor Co., Ltd., a 50/50 joint venture with Foshan Guangdong Automotive Air Conditioning Co., Ltd. (“FGD”), a China-based manufacturer of automotive belt driven air conditioning compressors. 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. During the years ended December 31, 2022 and 2021, we made purchases from the joint venture of approximately and Investment in Foshan GWOYNG SMP Vehicle Climate Control & Cooling Products Co. Ltd. In April 2014, we formed Foshan GWOYNG SMP Vehicle Climate Control & Cooling Products Co. Ltd., a 50/50 joint venture with Gwo Yng Enterprise Co., Ltd. (“Gwo Yng”), a China-based manufacturer of automotive air conditioner accumulators, filter driers, hose assemblies and switches . In March 2018, we acquired an additional 15% equity interest in the joint venture for approximately $4.2 million, thereby increasing our equity interest in the joint venture to 65%. Although we increased our equity interest in the joint venture to 65%, the minority shareholder maintained participating rights that allowed it to participate in certain significant financial and operating decisions that occur in the ordinary course of business. As a result of the existence of these substantive participating rights of the minority shareholder, we continued to account for our investment in the joint venture under the equity method of accounting. During the years ended December 31, 2022 and 2021, we made purchases from the joint venture of approximately $16.1 million and $15.9 million, respectively. Investment in Orange Electronic Co. Ltd. In January 2013, we acquired a 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, 2022, 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 years ended December 31, 2022 and 2021, we made purchases from Orange of approximately $4.1 million and $7.8 million, respectively. |
Other Assets
Other Assets | 12 Months Ended |
Dec. 31, 2022 | |
Other Assets [Abstract] | |
Other Assets | 10. Other Assets December 31, 2022 2021 (In thousands) Deferred compensation $ 20,190 $ 23,623 Noncurrent portion of interest rate swap fair value 3,091 — Long term receivables 1,944 971 Deferred financing costs, net 1,603 206 Other 682 602 Total other assets, net $ 27,510 $ 25,402 Deferred compensation consists of assets held in a nonqualified defined contribution pension plan as of December 31, 2022 and 2021, respectively. |
Credit Facilities and Long-Term
Credit Facilities and Long-Term Debt | 12 Months Ended |
Dec. 31, 2022 | |
Credit Facilities and Long-Term Debt [Abstract] | |
Credit Facilities and Long-Term Debt | 11. Credit Facilities and Long-Term Debt Total debt outstanding is summarized as follows: December 31, 2022 2021 (In thousands) Credit facility – term loan due 2027 $ 97,500 $ — Credit facility – revolver due 2027 142,000 — Senior secured facility – revolver due 2023 — 125,298 Other (1) 120 3,138 Total debt $ 239,620 $ 128,436 Current maturities of debt $ 55,031 $ 128,415 Long-term debt 184,589 21 Total debt $ 239,620 $ 128,436 (1) Other includes borrowings under our Polish overdraft facility of Zloty 12.3 million (approximately $3 million) as of December 31, 2021. There were no borrowings under the Polish overdraft facility at December 31, 2022. Term Loan and Revolving Credit Facilities In March 2022, the Company and its wholly owned subsidiaries, SMP Motor Products Ltd. and Trumpet Holdings, Inc., entered into an amendment to our existing Credit Agreement, dated as of October 28, 2015, as amended (the “2015 Credit Agreement”), with JP Morgan Chase Bank, N.A., as agent, and a syndicate of lenders for our senior secured revolving credit facility. The amendment provided for the drawdown of an additional $50 million from the agreement’s accordion feature to increase the line of credit under the revolving credit facility from $250 million to $300 million, and updated the benchmark provisions to replace LIBOR with Term SOFR as the reference rate. In June 2022, the Company entered into a new Credit Agreement with JPMorgan Chase Bank, N.A., as administrative agent, and a syndicate of lenders (the “Credit Agreement”). The Credit Agreement provides for a $500 million credit facility comprised of a $100 million term loan facility (the “term loan”) and a $400 million multi-currency revolving credit facility available in U.S. Dollars, Euros, Sterling, Swiss Francs, Canadian Dollars and other currencies as agreed to by the administrative agent and the lenders (the “revolving facility”). The Credit Agreement replaces and refinances the 2015 Credit Agreement. Borrowings under the Credit Agreement were used to repay all outstanding borrowings under the 2015 Credit Agreement, and pay certain fees and expenses incurred in connection with the Credit Agreement, with future borrowings used for other general corporate purposes of the Company and its subsidiaries. The term loan amortizes in quarterly installments of 1.25% in each of the first four years, and quarterly installments of 2.5% in the fifth year of the Credit Agreement. The revolving facility has a $25 million sub-limit for the issuance of letters of credit and a $25 million sub-limit for the borrowing of swingline loans. The maturity date is June 1, 2027. The Company may request up to two one-year extensions of the maturity date. The Company may, upon the agreement of one or more then existing lenders or of additional financial institutions not currently party to the Credit Agreement, increase the revolving facility commitments or obtain incremental term loans by an aggregate amount not to exceed (x) the greater of (i) $168 million or (ii) 100% of consolidated EBITDA (as defined in the Credit Agreement) for the four fiscal quarters ended most recently before such date, plus (y) the amount of any voluntary prepayment of term loans, plus (z) an unlimited amount so long as, immediately after giving effect thereto, the pro forma First Lien Net Leverage Ratio (as defined in the Credit Agreement) does not exceed 2.5 to 1.0. Term loan and revolver facility borrowings in U.S. Dollars bear interest, at the Company’s election, at a rate per annum equal to Term SOFR plus 0.10% plus an applicable margin, or an alternate base rate plus an applicable margin, where the alternate base rate is the greater of the prime rate, the federal funds effective rate plus 0.50%, and one-month Term SOFR plus 0.10% plus 1.00%. Term loan borrowings are being made at one-month Term SOFR. The applicable margin for the term benchmark borrowings ranges from 1.0% to 2.0%, and the applicable margin for alternate base rate borrowings ranges from 0% to 1.0%, in each case, based on the total net leverage ratio of the Company and its restricted subsidiaries. The Company may select interest periods of one, three or six months for Term SOFR borrowings. Interest is payable at the end of the selected interest period, but no less frequently than quarterly. The Company’s obligations under the Credit Agreement are guaranteed by its material domestic subsidiaries (each, a “Guarantor”), and secured by a first priority perfected security interest in substantially all of the existing and future personal property of the Company and each Guarantor, subject to certain exceptions. The collateral security described above also secures certain banking services obligations and interest rate swaps and currency or other hedging obligations of the Company owing to any of the then existing lenders or any affiliates thereof. Concurrently with the Company’s entry into the Credit Agreement, the Company also entered into a seven year interest rate swap agreement with Wells Fargo Bank, N.A., Co-Syndication Agent and lender under the Credit Agreement, on $100 million of borrowings under the Credit Agreement. The interest rate swap agreement matures in May 2029. Outstanding borrowings at December 31, 2022 under the Credit Agreement were $239.5 million, consisting of current borrowings of $55 million and long-term debt of $184.5 million; while outstanding borrowings at December 31, 2021 under the 2015 Credit Agreement were $125.3 million, consisting of current borrowings. Letters of credit outstanding under the Credit Agreement were $2.4 million at December 31, 2022, and $2.6 million under the 2015 Credit Agreement at December 31, 2021. Borrowings at December 31, 2021 under the 2015 Credit Agreement have been classified as current liabilities based upon accounting rules and certain provisions in the agreement. At December 31, 2022, the weighted average interest rate under our Credit Agreement was 5.2%, which consisted of $237 million in borrowings at 5.2% under Term SOFR, adjusted for the impact of the interest rate swap agreement on $100 million of borrowings, and an alternative base rate borrowing of $2.5 million at 8%. At December 31, 2021, the weighted average interest rate on our 2015 Credit Agreement was 1.4%, which consisted of $125 million in direct borrowings at 1.4% and alternative base rate loan of $0.3 million at 3.5%. During the year ended December 31, 2022, our average daily alternative base rate loan balance was $5.6 million, compared to a balance of $1.1 million for the year ended December 31, 2021. The Credit Agreement contains customary covenants limiting, among other things, the incurrence of additional indebtedness, the creation of liens, mergers, consolidations, liquidations and dissolutions, sales of assets, dividends and other payments in respect of equity interests, acquisitions, investments, loans and guarantees, subject, in each case, to customary exceptions, thresholds and baskets. The Credit Agreement also contains customary events of default. Polish Overdraft Facility I n October 2022, our Polish subsidiary, SMP Poland sp. z.o.o., amended its overdraft facility with HSBC Continental Europe (Spolka Akcyjna) Oddzial w Polsce to provide for borrowings under the facility in Euros and U.S. Dollars. Under the amended terms, the overdraft facility provides for borrowings of up to Zloty 30 million (approximately $6.8 million) if borrowings are solely in Zloty, or up to 85% of the Zloty 30 million limit (approximately $5.8 million) if borrowings are in Euros and/or U.S. Dollars. The overdraft facility has an initial maturity date in December 2022, with automatic three-month renewals until June 2027, subject to cancellation by either party, at its sole discretion, at least 30 days prior to the commencement of the three-month renewal period. Borrowings under the amended overdraft facility will bear interest at a rate equal to (1) the one month Warsaw Interbank Offered Rate (“WIBOR”) + 1.5% for borrowings in Polish Zloty, (2) the one month Euro Interbank Offered Rate (“EURIBOR”) + 1.5% for borrowings in Euros, and (3) the Mid-Point of the Fed Target Range + 1.75% for borrowings in U.S Dollars. Borrowings under the overdraft facility are guaranteed by Standard Motor Products, Inc., the ultimate parent company. At December 31, 2021 borrowings under the overdraft facility were Zloty 12.3 million (approximately $3 million). There were no borrowings outstanding under the overdraft facility at December 31, 2022 Maturities of Debt As of December 31, 2022, maturities of debt through 2027, assuming no prepayments, are as follows (in thousands): Revolving Credit Facility Term Loan Facility Polish Overdraft Facility and Other Debt Total 2023 — 5,000 120 5,120 2024 — 5,000 — 5,000 2025 — 5,000 — 5,000 2026 — 7,500 — 7,500 2027 142,000 75,000 — 217,000 Total $ 142,000 $ 97,500 $ 120 $ 239,620 Less: current maturities (50,000 ) (5,000 ) (31 ) (55,031 ) Long-term debt $ 92,000 $ 92,500 $ 89 $ 184,589 Deferred Financing Costs We have deferred financing costs of approximately $2.1 million and $0.4 million as of December 31, 2022 and 2021, respectively. Deferred financing costs are related to our term loan and revolving credit facilities. In connection with the amendment to the 2015 Credit Agreement entered into in March 2022 and the Credit Agreement entered into in June 2022 with JPMorgan Chase Bank, N.A., as agent, we incurred and capitalized approximately $0.2 million, and $1.9 million, respectively, of deferred financing costs related to bank, legal, and other professional fees which are being amortized, along with certain preexisting deferred financing costs, through June 2027, the term of the Credit Agreement. In addition, upon entering into the Credit Agreement, we wrote-off $40,000 of unamortized deferred financing costs associated with the 2015 Credit Agreement. Unamortized deferred financing costs written-off in June 2022 were recorded in other non-operating income (expense), net in our consolidated statement of operations. Deferred financing costs as of December 31, 2022, assuming no prepayments, are being amortized as follows: (In thousands) 2023 491 2024 478 2025 469 2026 464 2027 191 Total amortization $ 2,093 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 12 Months Ended |
Dec. 31, 2022 | |
Accumulated Other Comprehensive Income [Abstract] | |
Accumulated Other Comprehensive Income | 12. Accumulated Other Comprehensive Income Changes in Accumulated Other Comprehensive Income by Component (in thousands) Foreign Currency Translation Unrecognized Postretirement Benefit Costs (Credit) Unrealized derivative gains (losses) Total Balance at December 31, 2020 attributable to SMP $ (5,744 ) $ 68 $ — $ (5,676 ) Other comprehensive income before reclassifications (2,477 ) — — (2,477 ) Amounts reclassified from accumulated other comprehensive income — (16 ) — (16 ) Other comprehensive income, net (2,477 ) (16 ) — (2,493 ) Balance at December 31, 2021 attributable to SMP $ (8,221 ) $ 52 $ — $ (8,169 ) Other comprehensive income before reclassifications (8,109 ) — 3,797 (1) (4,312 ) Amounts reclassified from accumulated other comprehensive income — (15 ) 26 11 Other comprehensive income, net (8,109 ) (15 ) 3,823 (4,301 ) Balance at December 31, 2022 attributable to SMP $ (16,330 ) $ 37 $ 3,823 $ (12,470 ) (1) Consists of the unrecognized gain relating to the change in fair value of the cash flow interest rate hedge of $5.2 million ($3.8 million, net of tax), net of cash settlements payments of $42,000 ($31,000, net of tax) in the year ended December 31, 2022. Reclassifications Out of Accumulated Other Comprehensive Income (in thousands): Year Ended December 31, Details About Accumulated Other Comprehensive Income Components 2022 2021 Derivative cash flow hedge: Unrecognized gain (loss) (1) $ 35 $ — Postretirement Benefit Plans: Unrecognized gain (loss) (2) (25 ) (27 ) Total before income tax 10 (27 ) Income tax expense (benefit) (1 ) (11 ) Total reclassifications attributable to SMP $ 11 $ (16 ) (1) Unrecognized accumulated other comprehensive income (loss) related to the cash flow interest rate hedge is reclassified to earnings and reported as part of interest expense in our consolidated statements of operations when the interest payments on the underlying borrowings are recognized. (2) Unrecognized |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2022 | |
Stockholders' Equity [Abstract] | |
Stockholders' Equity | 13. 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 In March 2020, our Board of Directors authorized the purchase of up to $20 million of our common stock under a stock repurchase program. Stock repurchases under this program, during the years ended December 31, 2021 and 2020, were 150,273 and 323,867 shares of our common stock, respectively, at a total cost of $6.5 million and $13.5 million, respectively, thereby completing the 2020 Board of Directors authorization. In February 2021, our Board of Directors authorized the purchase of up to an additional $20 million of our common stock under a stock repurchase program. Stock repurchases under this program, during the year ended December 31, 2021, were 464,992 shares of our common stock at a total cost of $20 million, thereby completing the February In October 2021, our Board of Directors authorized the purchase of up to an additional $30 million of our common stock under a stock repurchase program. Stock repurchases under this program, during the year ended December 31, 2021 and 2022 were 7,000 and 692,067 shares of our common stock, respectively, at a total cost of $0.3 million and $29.7 million, respectively, thereby completing the October 2021 Board of Directors authorization. In July 2022, our Board of Directors authorized the purchase of up to an additional $30 million of our common stock under a new stock repurchase program. Stock will be purchased under the program from time to time, in the open market or through private transactions, as market conditions warrant. To date, there have been no repurchases of our common stock under the program. |
Stock-Based Compensation Plans
Stock-Based Compensation Plans | 12 Months Ended |
Dec. 31, 2022 | |
Stock-Based Compensation Plans [Abstract] | |
Stock-Based Compensation Plans | 14. 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 2021, our Board of Directors and Shareholders approved an amendment and restatement to the 2016 Omnibus Incentive Plan (the “Plan”). Under the 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 2,050,000 shares; and shares of restricted and performance-based stock to nonemployee directors of up to 350,000 shares. Shares issued under the Plan that are cancelled, forfeited or expire by their terms are eligible to be granted again under the Plan. 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. Awards previously granted under the 2006 Omnibus Incentive Plan remain outstanding, 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 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. We grant eligible employees two types of restricted stock (standard restricted shares and long-term retention restricted shares). Standard restricted shares granted to employees become fully vested no earlier than three years after the date of grant. Long-term retention restricted shares granted to selected executives vest at a 25% rate on or within approximately two months of an executive reaching the ages of 60 and 63, and become fully vested Performance-based shares issued to eligible employees 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 no earlier than three years after the date of grant. Each period we evaluate the probability of achieving the applicable targets, and we adjust our accrual accordingly. Restricted shares (other than long-term retention restricted shares) and performance shares issued to certain key executives and directors are subject to a one 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 do 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 amended and restated 2016 Omnibus Incentive Plan, 2,050,000 shares are authorized to be issued. At December 31, 2022, under the plan, there were an aggregate of (a) 1,385,337 shares of restricted and performance-based stock grants issued, net of forfeitures, and (b) 664,663 shares of common stock available for future grants. For the year ended December 31, 2022, 246,325 restricted and performance-based shares were granted (179,825 restricted shares and 66,500 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 As related to restricted and performance stock shares, we recorded compensation expense of $7.6 million ($5.7 million, net of tax), $9.1 million ($6.9 million, net of tax) and $7.8 million ($5.8 million, net of tax), for the years ended December 31, 2022, 2021 and 2020, respectively. The unamortized compensation expense related to our restricted and performance-based shares was $14.9 million and $16.6 million at December 31, 2022 and 2021, respectively and is expected to be recognized over a weighted average period of 4.3 years and 0.3 years for employees and directors, respectively, as of December 31, 2022 and over a weighted average period of 4.7 years and 0.4 years for employees and directors, respectively, as of December 31, 2021. Our restricted and performance-based share activity was as follows for the years ended December 31, 2022 and 2021: Shares Weighted Average Grant Date Fair Value per Share Balance at December 31 2020 839,686 $ 34.77 Granted 211,815 38.51 Vested (227,682 ) 36.10 Forfeited (16,800 ) 39.39 Balance at December 31 2021 807,019 $ 34.92 Granted 246,325 28.44 Vested (190,082 ) 41.71 Performance Shares Target Adjustment 25,317 42.21 Forfeited (7,750 ) 40.73 Balance at December 31 2022 880,829 $ 31.79 The weighted-average grant date fair value of restricted and performance-based shares outstanding as of December 31, 2022, 2021 and 2020 was $28 million (or $31.79 per share), $28.2 million (or $34.92 per share), and $29.2 million (or $34.77 per share), respectively. |
Employee Benefits
Employee Benefits | 12 Months Ended |
Dec. 31, 2022 | |
Employee Benefits [Abstract] | |
Employee Benefits | 15. Employee Benefits 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, 2022 $ 9,816 2021 9,763 2020 9,457 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 2022 and 2021, contributions of $0.8 million and $0.5 million were made related to calendar year 2021 and 2020, respectively. As of December 31, 2022, we have recorded an obligation of $0.8 million for 2022. 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 2022, we contributed to the trust an additional 48,200 shares from our treasury and released 48,200 shares from the trust leaving 200 shares remaining in the trust as of December 31, 2022. The provision for expense in connection with the ESOP was approximately $2.3 million in 2022, $2.5 million in 2021 and $2.3 million in 2020. 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. As there are no current participants in the SERP, there was no benefit obligation outstanding related to the plan as of December 31, 2022 and 2021 and we recorded no expense related to the plan during the years ended December 31, 2022, 2021 and 2020. Postretirement Medical Benefits We provide certain medical and dental care benefits to 13 former U.S. union employees. The postretirement medical and dental benefit obligation for the former union employees as of December 31, 2022, and the net periodic benefit cost for our postretirement benefit plans for the years ended December 31, 2022, 2021 and 2020 were not material. |
Other Non-Operating Income (Exp
Other Non-Operating Income (Expense), Net | 12 Months Ended |
Dec. 31, 2022 | |
Other Non-Operating Income (Expense), Net [Abstract] | |
Other Non-Operating Income (Expense), Net | 16. Other Non-Operating Income (Expense), Net The components of other non-operating income (expense), net are as follows: Year Ended December 31, 2022 2021 2020 (In thousands) Interest and dividend income $ 209 $ 49 $ 109 Equity income from joint ventures 3,464 3,295 820 Gain (loss) on foreign exchange 334 (257 ) (350 ) Other non-operating income, net 807 407 233 Total other non-operating income, net $ 4,814 $ 3,494 $ 812 |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Financial Instruments [Abstract] | |
Derivative Financial Instruments | 17. Derivative Financial Instruments Interest Rate Swap Agreements We occasionally use derivative financial instruments to reduce our market risk for changes in interest rates on our variable rate borrowings. The principal financial instruments used for cash flow hedging purposes are interest rate swap agreements. The interest rate swaps effectively convert a portion of our variable rate borrowings under our existing facilities to a fixed rate based upon determined notional amount. We do not enter into interest rate swap agreements, or other financial instruments, for trading or speculative purposes. In June 2022, we entered into a seven year interest rate swap agreement with a notional amount of $100 million that is to mature in May 2029 The fair value of the interest rate swap agreement as of December 31, 2022 was an asset of $5.2 million, which has been deferred and recorded in accumulated other comprehensive income, net of income taxes, in our consolidated balance sheet. When the interest expense on the underlying borrowing is recognized, the deferred gain/loss in accumulated other comprehensive income is recorded in earnings as interest expense in the consolidated statements of operations. We perform quarterly hedge effectiveness assessments and anticipate that the interest rate swap will be highly effective throughout its term. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | 18. Fair Value Measurements We follow a three-level fair value hierarchy that prioritizes the inputs to measure fair value. This hierarchy requires entities to maximize the use of “observable inputs” and minimize the use of “unobservable inputs.” The three levels of inputs used to measure fair value are as follows: Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets as of the measurement date. Level 2: Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3: Significant unobservable inputs that reflect assumptions that market participants would use in pricing an asset or liability. The following is a summary of the estimated fair values, carrying amounts, and classification under the fair value hierarchy of our financial instruments at December 31, 2022 and December 31, 2021 (in thousands): December 31, 2022 December 31, 2021 Fair Value Hierarchy Fair Value Carrying Amount Fair Value Carrying Amount Cash and cash equivalents LEVEL 1 $ 21,150 $ 21,150 $ 21,755 $ 21,755 Deferred compensation LEVEL 1 20,190 20,190 23,623 23,623 Short term borrowings LEVEL 1 55,031 55,031 128,415 128,415 Long-term debt LEVEL 1 184,589 184,589 21 21 Cash flow interest rate swap LEVEL 2 5,174 5,174 — — The carrying value of cash and cash equivalents approximates fair value due to the short maturity of those investments. The fair value of the underlying assets held by the deferred compensation plan are based on the quoted market prices of the underlying funds which are held by registered investment companies. The carrying value of our variable rate short-term borrowings and long-term debt under our credit facilities approximates fair value as the variable interest rates in the facilities reflect current market rates. The fair value of our cash flow interest rate swap agreement obtained from two independent third parties, is based upon market quotes, and represents the net amount required to terminate the interest rate swap, taking into consideration market rates and counterparty credit risk. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Taxes [Abstract] | |
Income Taxes | 19. Income Taxes The income tax provision (benefit) consists of the following (in thousands): Year Ended December 31, 2022 2021 2020 Current: Domestic $ 16,182 $ 26,528 $ 30,368 Foreign 8,669 5,851 4,064 Total current 24,851 32,379 34,432 Deferred: Domestic 1,102 (1,161 ) (7,418 ) Foreign (747 ) (174 ) (52 ) Total deferred 355 (1,335 ) (7,470 ) Total income tax provision $ 25,206 $ 31,044 $ 26,962 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, 2022 2021 2020 U.S. Federal income tax rate of 21 $ 20,650 $ 27,398 $ 22,550 Increase (decrease) in tax rate resulting from: State and local income taxes, net of federal income tax benefit 3,118 4,579 3,781 Income tax (benefit) attributable to foreign income (53 ) (122 ) 330 Other non-deductible items, net 423 (1,277 ) (563 ) Change in valuation allowance 1,068 466 864 Provision for income taxes $ 25,206 $ 31,044 $ 26,962 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, 2022 2021 Deferred tax assets: Inventories $ 11,604 $ 12,181 Allowance for customer returns 14,506 14,185 Postretirement benefits 25 33 Allowance for expected credit losses 2,965 1,450 Accrued salaries and benefits 12,048 15,585 Tax credit and NOL carryforwards 5,103 5,702 Accrued asbestos liabilities 17,208 15,463 Other 190 190 63,649 64,789 Valuation allowance (3,155 ) (2,087 ) Total deferred tax assets 60,494 62,702 Deferred tax liabilities: Intangible assets acquired, net of amortization 13,292 13,450 Depreciation 8,715 7,589 Interest rate swap agreement 1,299 — Other 3,530 5,537 Total deferred tax liabilities 26,836 26,576 Net deferred tax assets $ 33,658 $ 36,126 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 $3.2 million as of December 31, 2022 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 $33.7 million as of December 31, 2022, which is net of the remaining valuation allowance. At December 31, 2022, we have foreign tax credit carryforwards of approximately $3 million that will expire in varying amounts by 2031 As related to the taxation of our foreign subsidiaries, we aggregate our foreign earnings and profits, and utilize allowable deductions and available foreign tax credits in computing our U.S. tax. 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. 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, 2022, 2021 and 2020, we did t establish a liability for uncertain tax positions. We are subject to taxation in the U.S. and various state, local and foreign jurisdictions. As of December 31, 2022, the Company is no longer subject to U.S. Federal tax examinations for years before 2019. We remain subject to examination by state and local tax authorities for tax years 2018 through 2021 2018 2017 2020 2018 2017 2016 2019 |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 20. Earnings Per Share We present two calculations of earnings per common share. “Basic” earnings per common share equals net earnings attributable to SMP divided by weighted average common shares outstanding during the period. “Diluted” earnings per common share equals net earnings attributable to SMP 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 are reconciliations of the net earnings attributable to SMP and the shares used in calculating basic and dilutive net earnings per common share attributable to SMP (in thousands, except per share data): Year Ended December 31, 2022 2021 2020 Net Earnings Attributable to SMP - Earnings from continuing operations $ 73,042 $ 99,353 $ 80,417 Loss from discontinued operations (17,691 ) (8,467 ) (23,024 ) Net earnings attributable to SMP $ 55,351 $ 90,886 $ 57,393 Basic Net Earnings Per Common Share Attributable to SMP - Earnings from continuing operations per common share $ 3.37 $ 4.49 $ 3.59 Loss from discontinued operations per common share (0.82 ) (0.39 ) (1.02 ) Net earnings per common share attributable to SMP $ 2.55 $ 4.10 $ 2.57 Weighted average common shares outstanding 21,684 22,147 22,374 Diluted Net Earnings Per Common Share Attributable to SMP - Earnings from continuing operations per common share $ 3.30 $ 4.39 $ 3.52 Loss from discontinued operations per common share (0.80 ) (0.37 ) (1.01 ) Net earnings per common share attributable to SMP $ 2.50 $ 4.02 $ 2.51 Weighted average common shares outstanding 21,684 22,147 22,374 Plus incremental shares from assumed conversions: Dilutive effect of restricted stock and performance-based stock 456 469 452 Weighted average common shares outstanding – Diluted 22,140 22,616 22,826 The shares listed below were not included in the computation of diluted net earnings per common share attributable to SMP because to do so would have been anti-dilutive for the periods presented or because they were excluded under the treasury method (in thousands): 2022 2021 2020 Restricted and performance shares 292 269 268 |
Industry Segment and Geographic
Industry Segment and Geographic Data | 12 Months Ended |
Dec. 31, 2022 | |
Industry Segment and Geographic Data [Abstract] | |
Industry Segment and Geographic Data | 21. Industry Segment and Geographic Data We have two major reportable operating segments, each of which focuses on a specific line of automotive parts in the automotive aftermarket with a complementary focus on the non-aftermarket, industrial equipment and original equipment service markets. 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, 2022 2021 2020 Net sales (a): Engine Management $ 975,243 $ 937,936 $ 835,685 Temperature Control 382,285 348,423 281,954 Other 14,287 12,457 10,949 Total net sales $ 1,371,815 $ 1,298,816 $ 1,128,588 Intersegment sales (a) Engine Management $ 22,845 $ 23,599 $ 15,952 Temperature Control 9,728 9,024 6,162 Other (32,573 ) (32,623 ) (22,114 ) Total intersegment sales $ — $ — $ — Depreciation and Amortization: Engine Management $ 23,289 $ 21,881 $ 20,417 Temperature Control 3,266 3,626 4,035 Other 1,743 1,736 1,871 Total depreciation and amortization $ 28,298 $ 27,243 $ 26,323 Operating income (loss) Engine Management $ 91,047 $ 117,367 $ 111,217 Temperature Control 31,712 36,997 21,296 Other (18,624 ) (25,365 ) (23,618 ) Total operating income $ 104,135 $ 128,999 $ 108,895 Investment in unconsolidated affiliates: Engine Management $ 2,490 $ 2,729 $ 2,428 Temperature Control 39,255 41,358 38,079 Other — — — Total investment in unconsolidated affiliates $ 41,745 $ 44,087 $ 40,507 Capital expenditures Engine Management $ 19,306 $ 21,922 $ 13,496 Temperature Control 4,502 2,586 1,988 Other 2,148 1,367 2,336 Total capital expenditures $ 25,956 $ 25,875 $ 17,820 Total assets Engine Management $ 867,433 $ 845,767 $ 618,210 Temperature Control 283,086 257,114 230,111 Other 104,410 95,080 108,219 Total assets $ 1,254,929 $ 1,197,961 $ 956,540 (a) Segment net sales include intersegment sales in our Engine Management and Temperature Control segments. Other consists of the elimination of intersegment sales from our Engine Management and Temperature Control segments, as well as items pertaining to our Canadian business unit that does not meet the criteria of a reportable operating segment and our corporate headquarters function. Reconciliation of segment operating income to net earnings: Year Ended December 31, 2022 2021 2020 (In thousands) Operating income $ 104,135 $ 128,999 $ 108,895 Other non-operating income, net 4,814 3,494 812 Interest expense 10,617 2,028 2,328 Earnings from continuing operations before income taxes 98,332 130,465 107,379 Provision for income taxes 25,206 31,044 26,962 Earnings from continuing operations 73,126 99,421 80,417 Discontinued operations, net of tax (17,691 ) (8,467 ) (23,024 ) Net earnings $ 55,435 $ 90,954 $ 57,393 December 31, 2022 2021 2020 Long-lived assets (a) (In thousands) United States $ 326,199 $ 315,983 $ 241,053 Asia 76,766 80,175 40,621 Europe 38,351 37,892 16,504 Mexico 10,355 12,119 10,586 Canada 7,161 4,461 4,470 Total long-lived assets $ 458,832 $ 450,630 $ 313,234 (a) Long-lived assets are attributed to countries based upon the location of the assets. Our three largest individual customers accounted for approximately 59% of our consolidated net sales in 2022. For the disaggregation of our net sales from customers by geographic area, major product group and major sales channels for each of our segments, see Note 22, “Net Sales.” Beginning in the first quarter of 2023, our business will be organized into three operating segments – Engineered Solutions, Vehicle Control and Temperature Control |
Net Sales
Net Sales | 12 Months Ended |
Dec. 31, 2022 | |
Net Sales [Abstract] | |
Net Sales | 22. Net Sales Disaggregation of Net Sales We disaggregate our net sales from customers by geographic area, major product group, and major sales channels for each of our segments, as we believe it best depicts how the nature, amount, timing and uncertainty of our net sales are affected by economic factors. The following tables provide disaggregation of net sales information for the years ended December 31, 2022, 2021 and 2020 (in thousands): Year Ended December 31, 2022 Engine Management Temperature Control Other (b) Total Geographic Area: United States $ 849,858 $ 359,246 $ — $ 1,209,104 Canada 32,410 19,894 14,287 66,591 Europe 37,098 1,422 — 38,520 Mexico 30,917 400 — 31,317 Asia 18,830 356 — 19,186 Other foreign 6,130 967 — 7,097 Total $ 975,243 $ 382,285 $ 14,287 $ 1,371,815 Major Product Group: Ignition, emission control, fuel and safety related system products $ 824,677 $ — $ 10,775 $ 835,452 Wire and cable 150,566 — (223 ) 150,343 Compressors — 222,532 1,813 224,345 Other climate control parts — 159,753 1,922 161,675 Total $ 975,243 $ 382,285 $ 14,287 $ 1,371,815 Major Sales Channel: Aftermarket $ 709,128 $ 343,702 $ 14,287 $ 1,067,117 OE/OES 234,092 35,915 — 270,007 Export 32,023 2,668 — 34,691 Total $ 975,243 $ 382,285 $ 14,287 $ 1,371,815 Year Ended December 31, 2021 Engine Management Temperature Control Other (b) Total Geographic Area: United States $ 804,398 $ 329,980 $ — $ 1,134,378 Canada 33,590 16,513 12,457 62,560 Europe 27,293 390 — 27,683 Mexico 25,288 358 — 25,646 Asia 40,668 348 — 41,016 Other foreign 6,699 834 — 7,533 Total $ 937,936 $ 348,423 $ 12,457 $ 1,298,816 Major Product Group: Ignition, emission control, fuel and safety related system products $ 786,514 $ — $ 8,956 $ 795,470 Wire and cable 151,422 — (275 ) 151,147 Compressors — 206,697 1,434 208,131 Other climate control parts — 141,726 2,342 144,068 Total $ 937,936 $ 348,423 $ 12,457 $ 1,298,816 Major Sales Channel: Aftermarket $ 702,473 $ 317,804 $ 12,457 $ 1,032,734 OE/OES 208,760 28,545 — 237,305 Export 26,703 2,074 — 28,777 Total $ 937,936 $ 348,423 $ 12,457 $ 1,298,816 Year Ended December 31, 2020 Engine Management Temperature Control Other (b) Total Geographic Area: United States $ 738,521 $ 268,680 $ — $ 1,007,201 Canada 25,842 11,679 10,949 48,470 Europe 12,255 351 — 12,606 Mexico 19,336 271 — 19,607 Asia 35,079 165 — 35,244 Other foreign 4,652 808 — 5,460 Total $ 835,685 $ 281,954 $ 10,949 $ 1,128,588 Major Product Group: Ignition, emission control, fuel and safety related system products $ 691,722 $ — $ 8,172 $ 699,894 Wire and cable 143,963 — 159 144,122 Compressors — 163,071 812 163,883 Other climate control parts — 118,883 1,806 120,689 Total $ 835,685 $ 281,954 $ 10,949 $ 1,128,588 Major Sales Channel: Aftermarket $ 674,744 $ 263,690 $ 10,949 $ 949,383 OE/OES 142,072 17,096 — 159,168 Export 18,869 1,168 — 20,037 Total $ 835,685 $ 281,954 $ 10,949 $ 1,128,588 (a) Segment net sales include intersegment sales in our Engine Management and Temperature Control segments (b) Other consists of the elimination of intersegment sales from our Engine Management and Temperature Control segments as well as sales from our Canadian business unit that does not meet the criteria of a reportable operating segment. Intersegment wire and cable sales for the years ended December 31, 2022 and 2021 exceeded third party sales from our Canadian business unit. Geographic Area We sell our line of products primarily in the United States, with additional sales in Canada, Mexico, Europe, Asia and Latin America. Sales are attributed to countries based upon the location of the customer. Our sales are substantially denominated in U.S. dollars. Major Product Group The Engine Management segment of the Company principally generates revenue from the sale of automotive engine parts in the automotive aftermarket including ignition, emission control, fuel and safety related system products, and wire and cable parts. The Temperature Control segment of the Company principally generates revenue from the sale of automotive temperature control systems parts in the automotive aftermarket including air conditioning compressors and other climate control parts. Major Sales Channel In the aftermarket channel, we sell our products to warehouse distributors and retailers. Our customers buy directly from us and sell directly to jobber stores, professional technicians and to “do-it-yourselfers” who perform automotive repairs on their personal vehicles. In the Specialized Original Equipment (“OE”) and Original Equipment Service (“OES”) channel, we sell our products to original equipment manufacturers who redistribute our products within their distribution network, independent dealerships and service dealer technicians. Lastly, in the Export channel, our domestic entities sell to customers outside the United States. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | 23. Commitments and Contingencies Total rent expense for the three years ended December 31, 2022 was as follows (in thousands): Total Real Estate Other 2022 $ 14,135 $ 11,385 $ 2,750 2021 12,065 9,500 2,565 2020 11,669 8,290 3,379 (1) In cludes expenses of approximately $2.7 million and $ million for the years ended December 31, 2022 and 2021, respectively, related to non-lease components such as maintenance, property taxes, etc., and operating lease expense for leases with an initial term of 12 months or less, which is no For our operating lease minimal rental payments that we are obligated to make, see Note 7, “Leases.” 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, 2022 and 2021, we have accrued $19.7 million and $17.5 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 2022, 2021 and 2020 were The following table provides the changes in our product warranties: December 31, 2022 2021 (In thousands) Balance, beginning of period $ 17,463 $ 17,663 Liabilities accrued for current year sales 112,477 91,908 Settlements of warranty claims (110,273 ) (92,108 ) Balance, end of period $ 19,667 $ 17,463 Letters of Credit At December 31, 2022, we had outstanding letters of credit with certain vendors aggregating approximately $2.4 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 have 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 I n 1986, we acquired a brake business, which we subsequently sold in March 1998 and which is accounted for as a discontinued operation in the accompanying statement of operations. 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 settlements, awards of asbestos-related damages, and defense of such claims. At December 31, 2022, approximately Since inception in September 2001 through December 31, 2022, the amounts paid for settled claims and awards of asbestos-related damages, including interest, were approximately 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 such claims. 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; and perform an actuarial evaluation in the third quarter of each year and whenever events or changes in circumstances indicate that additional provisions may be necessary. 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; (4) an analysis of our settlements and awards of asbestos-related damages to date; and (5) an analysis of closed claims with pay ratios and lag patterns in order to develop average future settlement values. 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 and awards of asbestos-related damages 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. In accordance with our policy to perform an annual actuarial evaluation in the quarter of each year, an actuarial study was performed as of . T $68.8 to $ for the period through . Based upon the results of the actuarial study, in we increased our asbestos liability to $ , the low end of the range, and recorded an incremental pre-tax provision of $ 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 August 31, 2022 study, to range from $ to $105.7 for the period through . Total operating cash outflows related to discontinued operations, which include settlements, awards of asbestos-related damages and legal costs, net of taxes, were $12 , $ and $ for the years ended and , respectively. We plan to perform an annual actuarial evaluation during the third quarter of each year for the foreseeable future and whenever events or changes in circumstances indicate that additional provisions may be necessary. 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 events and changes in circumstances surrounding these potential liabilities in determining whether to perform additional actuarial evaluations and 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. |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2022 | |
Schedule II - Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | STANDARD MOTOR PRODUCTS, INC. AND SUBSIDIARIES Schedule II ‑ Years ended December 31, 2022, 2021 and 2020 Additions Description Balance at beginning of year Charged to costs and expenses Other Deductions Balance at end of year Year ended December 31, 2022 : Allowance for expected credit losses $ 4,815,000 $ 6,242,000 (1) $ — $ 6,928,000 $ 4,129,000 Allowance for discounts 1,355,000 13,456,000 — 13,565,000 1,246,000 $ 6,170,000 $ 19,698,000 $ — $ 20,493,000 $ 5,375,000 Allowance for sales returns $ 42,412,000 $ 152,985,000 $ — $ 158,228,000 $ 37,169,000 Year ended December 31, 2021 : Allowance for expected credit losses $ 4,406,000 $ 450,000 $ — $ 41,000 $ 4,815,000 Allowance for discounts 1,416,000 13,827,000 — 13,888,000 1,355,000 $ 5,822,000 $ 14,277,000 $ — $ 13,929,000 $ 6,170,000 Allowance for sales returns $ 40,982,000 $ 129,964,000 $ — $ 128,534,000 $ 42,412,000 Year ended December 31, 2020 : Allowance for expected credit losses $ 4,244,000 $ 392,000 $ — $ 230,000 $ 4,406,000 Allowance for discounts 968,000 11,488,000 — 11,040,000 1,416,000 $ 5,212,000 $ 11,880,000 $ — $ 11,270,000 $ 5,822,000 Allowance for sales returns $ 35,240,000 $ 135,448,000 $ — $ 129,706,000 $ 40,982,000 (1) Includes a $7 million charge relating to one of our customers that filed a petition for bankruptcy in January 2023. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
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,” “SMP,” or the “Company”) is a leading manufacturer and distributor of premium replacement parts utilized in the maintenance, repair and service of vehicles in the automotive aftermarket industry with a complementary focus on specialized equipments parts for manufacturers across multiple industries around the world. The consolidated financial statements include our accounts and all domestic and international companies in which we have more than a 50% equity ownership, except in instances where the minority shareholder maintains substantive participating rights, in which case we follow the equity method of accounting. In instances where we have more than a 50% equity ownership and the minority shareholder does not maintain substantive participating rights, our consolidated financial statements include the accounts of the company on a consolidated basis with its net income and equity reported at amounts attributable to both our equity position and that of the noncontrolling interest. 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 The preparation of consolidated financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amount of assets and liabilities, the disclosure of contingent assets and liabilities at the date of our consolidated financial statements, and the reported amounts of revenue and expenses during the reporting periods. We have made a number of estimates and assumptions in the preparation of these consolidated financial statements. 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 estimates, or in the assumptions that we use in calculating the estimates, the uncertain future effects, if any, of disruptions in the supply chain caused by the COVID-19 pandemic, Russia’s invasion of the Ukraine and resultant sanctions imposed by the U.S. and other governments, future increases in interest rates, inflation, macroeconomic uncertainty, and other unforeseen changes in the industry, or business, could materially impact the estimates, and may have a material adverse effect on our business, financial condition and results of operations. Some of the more significant estimates include allowances for expected credit losses, 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, asbestos, environmental and litigation matters, valuation of deferred tax assets, share based compensation and sales returns and other allowances. |
Reclassification | Reclassification Certain prior period amounts in the accompanying consolidated financial statements and related notes have been reclassified to conform to the 2022 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 Expected Credit Losses and Cash Discounts | Allowance for Expected Credit Losses 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, supportable forecasts, aging analysis, and specific account evaluations. When a receivable balance is known to be uncollectible, it is written off against the allowance for expected credit losses. In January 2023, one of our customers filed a petition for bankruptcy. In connection with the bankruptcy filing, we evaluated our potential risk and exposure as related to our outstanding accounts receivable balance from the customer as of December 31, 2022, and estimated our anticipated recovery. As a result of our evaluation, we recorded a $7 million pre-tax charge during the year ended December 31, 2022 to reduce our accounts receivable balance to our estimated recovery. We will continue to monitor the circumstances surrounding the bankruptcy in determining whether additional provisions may be necessary. 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. The historical volatility of such estimates has been minimal. We maintain provisions for inventory reserves of $42.5 million and $46.2 million as of December 31, 2022 and 2021, 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, at the time of sale of air conditioning compressors, diesel injectors, and diesel pumps, we estimate the core expected to be returned from the customer and record the estimated return as unreturned customer inventory. In addition, many of our customers can return inventory to us based upon customer warranty and overstock arrangements within customer specific limits. At the time products are sold, we accrue a liability for product warranties and overstock returns and record as unreturned customer inventory our estimate of anticipated customer returns. Estimates are based upon historical information on the nature, frequency and probability of the customer return. Unreturned core, warranty and overstock customer inventory is recorded at standard cost. Revision to these estimates is made when necessary, based upon changes in these factors. We regularly study trends of such claims. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment 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 Building improvements 10 to 25 years Machinery and equipment 5 to years Tools, dies and auxiliary equipment 3 to years Furniture and fixtures 3 to 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. |
Leases | Leases We determine if an arrangement is a lease at inception. For operating leases, we include and report operating lease right-of-use (“ROU”) assets, sundry payables and accrued expenses, and noncurrent operating lease liabilities on our consolidated balance sheet for leases with a term longer than twelve months. Finance leases are reported on our consolidated balance sheets in property, plant and equipment, current portion of other debt, and long-term debt. Operating lease ROU assets and operating lease liabilities are recognized at the lease commencement date based on the present value of the total lease payments over the lease term. Our ROU assets represent the right to use an underlying leased asset over the existing lease term, and the corresponding lease liabilities represent our obligation to make lease payments arising from the lease agreement. As most of our leases do not provide for an implicit rate, we use our secured incremental borrowing rate based on the information available when determining the present value of our lease payments. Our lease terms may include options to terminate, or extend, our lease when it is reasonably certain that we will execute the option. Lease agreements may contain lease and non-lease components, which are generally accounted for separately. Operating lease expense is recognized on a straight-line basis over the lease term. |
Valuation of Long-Lived and 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 consist of customer relationships, trademarks and trade names, patents, developed technology and intellectual property, and non-compete agreements. Intangible assets acquired through business combinations are subject to potential adjustments within the measurement period, which is up to one year from the acquisition date. Valuing intangible assets requires the use of significant estimates and assumptions. As related to valuing customer relationships, significant estimates and assumptions used include but are not limited to: (1) forecasted revenues attributable to existing customers; (2) forecasted earnings before interest and taxes (“EBIT”) margins; (3) customer attrition rates; and (4) the discount rate. 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 believe that the fair value of acquired identifiable net assets, including intangible assets, are based upon reasonable estimates and assumptions. 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 a quantitative impairment test would not be required. If we are unable to reach this conclusion, then we would perform a goodwill quantitative impairment test. In performing the quantitative test, the fair value of the reporting unit is compared to its carrying amount. A charge for impairment is recognized by the amount by which the reporting unit’s carrying amount exceeds its fair value, not to exceed the total amount of goodwill allocated to the reporting unit. Identifiable intangible assets having indefinite lives are reviewed for impairment on an annual basis using a methodology similar 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 intangible assets having definite lives and other long-lived assets 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. |
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 our performance obligation has been satisfied and the control of products has been transferred to a customer which typically occurs upon shipment. Revenue is measured as the amount of consideration we expect to receive in exchange for the transfer of goods or providing services. The amount of consideration we receive and revenue we recognize depends on the marketing incentives, product warranty and overstock returns we offer to our customers. 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 at the time of the sale but rather carried as a core liability. At the same time, we estimate the core expected to be returned from the customer and record the estimated return as unreturned customer inventory. The liability is extinguished when a core is actually returned to us, or at period end when we estimate and recognize revenue for the core deposits not expected to be returned. 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. |
Product Warranty and Overstock Returns | Product Warranty and Overstock Returns Many of our products carry a warranty ranging from a -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 of their annual purchases from us) in the event that they have overstocked their inventories. At the time products are sold, we accrue a liability for product warranties and overstock returns as a of sales based upon estimates established using historical information on the nature, frequency and average cost of the claim and the probability of the customer return. At the same time, we record an estimate of anticipated customer returns as unreturned customer inventory. Significant judgments and estimates must be made and used in connection with establishing the sales returns and other allowances in any accounting period. Revision to these estimates is made when necessary, based upon changes in these factors. We regularly study trends of such claims. |
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 stock lift. New customer acquisition costs are recorded as a reduction to revenue when incurred. |
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. |
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. 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 as of December 31, 2022 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 as of December 31, 2022 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. During the years ended December 31, 2022, 2021 and 2020 we did not establish a liability for uncertain tax positions. |
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 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 such claims. 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; and perform an actuarial evaluation in the third quarter of each year and whenever events or changes in circumstances indicate that additional provisions may be necessary. 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; (4) an analysis of our settlements and awards of asbestos-related damages to date; and (5) an analysis of closed claims with pay ratios and lag patterns in order to develop average future settlement values. 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 and awards of asbestos-related damages 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. Future legal costs are expensed as incurred and reported in earnings (loss) from discontinued operations in the accompanying statement of operations. We plan to perform an annual actuarial evaluation during the third quarter of each year for the foreseeable future |
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. |
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, accounts receivable and derivative financial instruments used to reduce our market risk for changes in interest rates on our variable rate borrowings. We place our cash investments with high quality financial institutions and limit the amount of credit exposure to any one institution. Derivative financial instruments used to reduce our market risk for changes in interest rates on our variable rate borrowings are entered into with high quality financial institutions, with their credit worthiness reviewed on a quarterly basis. 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. A significant portion of our net sales are concentrated from our three largest individual customers. 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. In January 2023, one of our customers filed a petition for bankruptcy. In connection with the bankruptcy filing, we evaluated our potential risk and exposure as related to our outstanding accounts receivable balance from the customer as of December 31, 2022, and estimated our anticipated recovery. As a result of our evaluation, we recorded a $7 million pre-tax charge during the year ended December 31, 2022 to reduce our accounts receivable balance to our estimated recovery. The $7 million pre-tax charge is included in selling, general and administrative expenses in our consolidated statement of operations. We will continue to monitor the circumstances surrounding the bankruptcy in determining whether additional provisions may be necessary. For further information on net sales to our three largest customers and our concentration our customer risk, see Note 21, “Industry Segment and Geographic Data.” |
Foreign Cash Balances | Foreign Cash Balances Substantially all of the cash and cash equivalents, including foreign cash balances, at December 31, 2022 and 2021 were uninsured. Foreign cash balances at December 31, 2022 and 2021 were and , respectively. |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities We occasionally use derivative financial instruments to reduce our market risk for changes in interest rates on our variable rate borrowings. Derivative financial instruments are recorded at fair value in other current and long-term assets, and other current and long-term liabilities in the consolidated balance sheets. For derivative financial instruments that have been formally designated as cash flow interest rate hedges (“interest rate swap agreements”), provided that the hedging instrument is highly effective, the entire change in the fair value of the derivative will be deferred and recorded in accumulated other comprehensive income (“AOCI”) in the consolidated balance sheets. When the underlying hedged transaction is realized (i.e., when the interest payments on the underlying borrowing are recognized in the consolidated statements of operations), the gain/loss included in AOCI is recorded in earnings and reflected on the same line as the gain/loss on the hedged item attributable to the hedged risk (i.e., interest expense). At the inception of each transaction, we formally document the hedge relationship, including the identification of the hedge instrument, the related hedged items, the effectiveness of the hedge, as well as its risk management objectives and strategies. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements Standards that were adopted Standard Description Date of adoption / Effective date Effects on the financial statements or other significant matters ASU - /ASU Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting These standards are intended to provide optional guidance for a limited time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. The new standards are applicable to contracts that reference LIBOR, or another reference rate, expected to be discontinued due to reference rate reform. ASU 2020-04 effective March 12, 2020 through December 31, 2022, with sunset date extended to December 31, 2024 by ASU 2022–06. During the year ended December 31, 2022, we entered into a new credit agreement and new supply chain financing arrangements that no longer used LIBOR as the reference rate. In connection with these new agreements, the adoption of the optional guidance provided in the new standards did not materially impact our accounting, consolidated financial statements and related disclosures. Standards that are not yet adopted as of December 31, 2022 There are no recently issued accounting pronouncements not yet been adopted as of December 31, 2022 that could have a material impact on our financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Summary of Significant Accounting Policies [Abstract] | |
Estimated Useful Lives of Property, Plant and Equipment | Property, plant and equipment 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 Building improvements 10 to 25 years Machinery and equipment 5 to years Tools, dies and auxiliary equipment 3 to years Furniture and fixtures 3 to years |
Business Acquisitions and Inv_2
Business Acquisitions and Investments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Kade [Member] | |
Business Acquisition [Line Items] | |
Allocation of Purchase Price, 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 $ 3,176 Assets acquired and liabilities assumed: Receivables $ 790 Inventory 829 Other current assets (1) 1,003 Property, plant and equipment, net 63 Operating lease right-of-use assets 401 Intangible assets 2,395 Goodwill 766 Current liabilities (1,977 ) Noncurrent operating lease liabilities (328 ) Deferred income taxes (766 ) Net assets acquired $ 3,176 (1) The other current assets balance includes $1 million of cash acquired. |
Stabil [Member] | |
Business Acquisition [Line Items] | |
Allocation of Purchase Price, 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 $ 16,290 Assets acquired and liabilities assumed: Receivables $ 2,852 Inventory 5,126 Other current assets (1) 1,628 Property, plant and equipment, net 1,810 Operating lease right-of-use assets 4,971 Intangible assets 5,471 Goodwill 4,827 Current liabilities (4,190 ) Noncurrent operating lease liabilities (4,454 ) Deferred income taxes (1,751 ) Net assets acquired $ 16,290 (1) The other current assets balance includes $0.9 million of cash acquired. |
Trombetta [Member] | |
Business Acquisition [Line Items] | |
Allocation of Purchase Price, 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 $ 111,711 Assets acquired and liabilities assumed: Receivables $ 9,173 Inventory 12,460 Other current assets (1) 5,193 Property, plant and equipment, net 4,939 Operating lease right-of-use assets 3,847 Intangible assets 54,700 Goodwill 49,250 Current liabilities (5,072 ) Noncurrent operating lease liabilities (3,065 ) Deferred income taxes (8,210 ) Subtotal 123,215 Fair value of acquired noncontrolling interest (11,504 ) Net assets acquired $ 111,711 (1) The other current assets balance includes $4.6 million of cash acquired. |
Soot Sensor [Member] | |
Business Acquisition [Line Items] | |
Allocation of Purchase Price, 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 $ 2,924 Assets acquired and liabilities assumed: Inventory $ 1,032 Machinery and equipment, net 1,137 Intangible assets 755 Net assets acquired $ 2,924 |
Restructuring and Integration_2
Restructuring and Integration Expense (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Restructuring and Integration Expense [Abstract] | |
Restructuring and Integration Expense | 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, 2021 and 2020, consisted of the following (in thousands): Workforce Reduction Other Exit Costs Total Exit activity liability at December 31 2020 $ 179 $ — $ 179 Restructuring and integration costs: Amounts provided for during 2021 — 392 392 Cash payments (100 ) (392 ) (492 ) Exit activity liability at December 31 2021 $ 79 $ — $ 79 Restructuring and integration costs: Amounts provided for during 2022 (1) 1,521 370 1,891 Cash payments (16 ) (144 ) (160 ) Reclassification of environmental and other liabilities (63 ) (226 ) (289 ) Exit activity liability at December 31 2022 $ 1,521 $ — $ 1,521 (1) Included in restructuring and integration costs in 2022 is a $0.2 million increase in environmental cleanup costs related to ongoing monitoring and remediation in connection with the prior closure of our manufacturing operations at our Long Island City, New York location. The environmental liability has been reclassed to accrued liabilities as of December 31, 2022. |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Inventories [Abstract] | |
Inventories | December 31, 2022 December 31, 2021 (In thousands) Finished goods $ 324,362 $ 296,739 Work-in-process 14,099 16,010 Raw materials 190,254 156,006 Subtotal 528,715 468,755 Unreturned customer inventories 19,695 22,268 Total inventories $ 548,410 $ 491,023 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | December 31, 2022 2021 (In thousands) Land, buildings and improvements $ 42,651 $ 40,882 Machinery and equipment 166,149 159,967 Tools, dies and auxiliary equipment 67,017 63,944 Furniture and fixtures 32,084 30,688 Leasehold improvements 15,083 14,081 Construction-in-progress 23,340 21,012 Total property, plant and equipment 346,324 330,574 Less accumulated depreciation 239,176 227,788 Total property, plant and equipment, net $ 107,148 $ 102,786 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Quantitative Disclosures Related to Operating Leases | The following tables provide quantitative disclosures related to our operating leases and includes all operating leases acquired from the date of the acquisition : Balance Sheet Information December 31, Assets 2022 2021 Operating lease right-of-use assets $ 49,838 $ 40,469 Liabilities Sundry payables and accrued expenses $ 10,763 $ 10,544 Noncurrent operating lease liabilities 40,709 31,206 Total operating lease liabilities $ 51,472 $ 41,750 Weighted Average Remaining Lease Term Operating leases 7 Years 5.3 Years Weighted Average Discount Rate Operating leases 3.7 % 3 % Year Ended, December 31, Expense and Cash Flow Information 2022 2021 Lease Expense Operating lease expense (a) $ 11,411 $ 10,051 Supplemental Cash Flow Information Cash Paid for the amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 11,293 $ 9,985 Right-of-use assets obtained in exchange for new lease obligations: Operating leases (b) $ 31,064 $ 20,975 (a) Excludes expenses of approximately $2.7 million and $2 million for the years ended December 31, 2022 and 2021, respectively, related to non-lease components such as maintenance, property taxes, etc., and operating lease expense for leases with an initial term of 12 months or less, which is not material. (b) Includes $21.6 million of right-of-use assets related to the lease modification and extension for our executive offices in Long Island City, New York during year ended December 31, 2022, and right-of-use assets obtained in business acquisitions of $0.4 million and $8.8 million during the years ended December 31, 2022 and 2021, respectively. |
Minimum Lease Payments | At December 31, 2022, we are obligated to make minimum lease payments through 2033, under operating leases, which are as follows (in thousands): 2023 $ 10,956 2024 9,770 2025 7,179 2026 6,268 2027 5,383 Thereafter 20,633 Total lease payments $ 60,189 Less: Interest (8,717 ) Present value of lease liabilities $ 51,472 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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, 2022 and 2021 are as follows (in thousands): Engine Management Temperature Control Total Balance as of December 31 2020 Goodwill $ 102,055 $ 14,270 $ 116,325 Accumulated impairment losses (38,488 ) — (38,488 ) $ 63,567 $ 14,270 $ 77,837 Activity in 2021 Acquisition of Trombetta 49,250 — 49,250 Acquisition of Stabil 4,827 — 4,827 Foreign currency exchange rate change (262 ) — (262 ) Balance as of December 31 2021 Goodwill 155,870 14,270 170,140 Accumulated impairment losses (38,488 ) — (38,488 ) $ 117,382 $ 14,270 $ 131,652 Activity in 2022 Acquisition of Kade — 766 766 Foreign currency exchange rate change (402 ) 71 (331 ) Balance as of December 31 Goodwill 155,468 15,107 170,575 Accumulated impairment losses (38,488 ) — (38,488 ) $ 116,980 $ 15,107 $ 132,087 |
Acquired Identifiable Intangible Assets | Acquired identifiable intangible assets as of December 31, 2022 and 2021 consist of: December 31, 2022 2021 (In thousands) Customer relationships $ 158,717 $ 157,020 Patents, developed technology and intellectual property 14,123 14,123 Trademarks and trade names 8,880 8,880 Non-compete agreements 3,282 3,280 Supply agreements 800 800 Leaseholds 160 160 Total acquired intangible assets 185,962 184,263 Less accumulated amortization (1) (86,945 ) (78,932 ) Net acquired intangible assets $ 99,017 $ 105,331 (1) Applies to all intangible assets, except for a related trademark/trade name totaling $2.6 million, which has an indefinite useful life and, as such, is not being amortized. |
Investments in Unconsolidated_2
Investments in Unconsolidated Affiliates (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Investments in Unconsolidated Affiliates [Abstract] | |
Investments in Unconsolidated Affiliates | December 31, 2022 2021 (In thousands) Foshan GWOYNG SMP Vehicle Climate Control & Cooling Products Co. Ltd. $ 18,410 $ 20,692 Foshan FGD SMP Automotive Compressor Co. Ltd 16,747 16,676 Foshan Che Yijia New Energy Technology Co., Ltd. 4,098 3,990 Orange Electronic Co. Ltd 2,490 2,729 Total $ 41,745 $ 44,087 |
Other Assets (Tables)
Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Other Assets [Abstract] | |
Other Assets | December 31, 2022 2021 (In thousands) Deferred compensation $ 20,190 $ 23,623 Noncurrent portion of interest rate swap fair value 3,091 — Long term receivables 1,944 971 Deferred financing costs, net 1,603 206 Other 682 602 Total other assets, net $ 27,510 $ 25,402 |
Credit Facilities and Long-Te_2
Credit Facilities and Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Credit Facilities and Long-Term Debt [Abstract] | |
Summary of Total Debt Outstanding | Total debt outstanding is summarized as follows: December 31, 2022 2021 (In thousands) Credit facility – term loan due 2027 $ 97,500 $ — Credit facility – revolver due 2027 142,000 — Senior secured facility – revolver due 2023 — 125,298 Other (1) 120 3,138 Total debt $ 239,620 $ 128,436 Current maturities of debt $ 55,031 $ 128,415 Long-term debt 184,589 21 Total debt $ 239,620 $ 128,436 (1) Other includes borrowings under our Polish overdraft facility of Zloty 12.3 million (approximately $3 million) as of December 31, 2021. There were no borrowings under the Polish overdraft facility at December 31, 2022. |
Maturities of Debt | As of December 31, 2022, maturities of debt through 2027, assuming no prepayments, are as follows (in thousands): Revolving Credit Facility Term Loan Facility Polish Overdraft Facility and Other Debt Total 2023 — 5,000 120 5,120 2024 — 5,000 — 5,000 2025 — 5,000 — 5,000 2026 — 7,500 — 7,500 2027 142,000 75,000 — 217,000 Total $ 142,000 $ 97,500 $ 120 $ 239,620 Less: current maturities (50,000 ) (5,000 ) (31 ) (55,031 ) Long-term debt $ 92,000 $ 92,500 $ 89 $ 184,589 |
Scheduled of Deferred Financing Costs | Deferred financing costs as of December 31, 2022, assuming no prepayments, are being amortized as follows: (In thousands) 2023 491 2024 478 2025 469 2026 464 2027 191 Total amortization $ 2,093 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accumulated Other Comprehensive Income [Abstract] | |
Changes in Accumulated Other Comprehensive Income by Component | Changes in Accumulated Other Comprehensive Income by Component (in thousands) Foreign Currency Translation Unrecognized Postretirement Benefit Costs (Credit) Unrealized derivative gains (losses) Total Balance at December 31, 2020 attributable to SMP $ (5,744 ) $ 68 $ — $ (5,676 ) Other comprehensive income before reclassifications (2,477 ) — — (2,477 ) Amounts reclassified from accumulated other comprehensive income — (16 ) — (16 ) Other comprehensive income, net (2,477 ) (16 ) — (2,493 ) Balance at December 31, 2021 attributable to SMP $ (8,221 ) $ 52 $ — $ (8,169 ) Other comprehensive income before reclassifications (8,109 ) — 3,797 (1) (4,312 ) Amounts reclassified from accumulated other comprehensive income — (15 ) 26 11 Other comprehensive income, net (8,109 ) (15 ) 3,823 (4,301 ) Balance at December 31, 2022 attributable to SMP $ (16,330 ) $ 37 $ 3,823 $ (12,470 ) (1) Consists of the unrecognized gain relating to the change in fair value of the cash flow interest rate hedge of $5.2 million ($3.8 million, net of tax), net of cash settlements payments of $42,000 ($31,000, net of tax) in the year ended December 31, 2022. |
Reclassifications Out of Accumulated Other Comprehensive Income | Reclassifications Out of Accumulated Other Comprehensive Income (in thousands): Year Ended December 31, Details About Accumulated Other Comprehensive Income Components 2022 2021 Derivative cash flow hedge: Unrecognized gain (loss) (1) $ 35 $ — Postretirement Benefit Plans: Unrecognized gain (loss) (2) (25 ) (27 ) Total before income tax 10 (27 ) Income tax expense (benefit) (1 ) (11 ) Total reclassifications attributable to SMP $ 11 $ (16 ) (1) Unrecognized accumulated other comprehensive income (loss) related to the cash flow interest rate hedge is reclassified to earnings and reported as part of interest expense in our consolidated statements of operations when the interest payments on the underlying borrowings are recognized. (2) Unrecognized |
Stock-Based Compensation Plans
Stock-Based Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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, 2022 and 2021: Shares Weighted Average Grant Date Fair Value per Share Balance at December 31 2020 839,686 $ 34.77 Granted 211,815 38.51 Vested (227,682 ) 36.10 Forfeited (16,800 ) 39.39 Balance at December 31 2021 807,019 $ 34.92 Granted 246,325 28.44 Vested (190,082 ) 41.71 Performance Shares Target Adjustment 25,317 42.21 Forfeited (7,750 ) 40.73 Balance at December 31 2022 880,829 $ 31.79 |
Employee Benefits (Tables)
Employee Benefits (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Employee Benefits [Abstract] | |
Defined Contribution Plan Matching Obligations | 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, 2022 $ 9,816 2021 9,763 2020 9,457 |
Other Non-Operating Income (E_2
Other Non-Operating Income (Expense), Net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Other Non-Operating Income (Expense), Net [Abstract] | |
Components of Other Non-Operating Income (Expense) | The components of other non-operating income (expense), net are as follows: Year Ended December 31, 2022 2021 2020 (In thousands) Interest and dividend income $ 209 $ 49 $ 109 Equity income from joint ventures 3,464 3,295 820 Gain (loss) on foreign exchange 334 (257 ) (350 ) Other non-operating income, net 807 407 233 Total other non-operating income, net $ 4,814 $ 3,494 $ 812 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Measurements [Abstract] | |
Summary of Estimated Fair Values, Carrying Amounts and Classification under Fair Value Hierarchy | The following is a summary of the estimated fair values, carrying amounts, and classification under the fair value hierarchy of our financial instruments at December 31, 2022 and December 31, 2021 (in thousands): December 31, 2022 December 31, 2021 Fair Value Hierarchy Fair Value Carrying Amount Fair Value Carrying Amount Cash and cash equivalents LEVEL 1 $ 21,150 $ 21,150 $ 21,755 $ 21,755 Deferred compensation LEVEL 1 20,190 20,190 23,623 23,623 Short term borrowings LEVEL 1 55,031 55,031 128,415 128,415 Long-term debt LEVEL 1 184,589 184,589 21 21 Cash flow interest rate swap LEVEL 2 5,174 5,174 — — |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Taxes [Abstract] | |
Income Tax Provision (Benefit) | The income tax provision (benefit) consists of the following (in thousands): Year Ended December 31, 2022 2021 2020 Current: Domestic $ 16,182 $ 26,528 $ 30,368 Foreign 8,669 5,851 4,064 Total current 24,851 32,379 34,432 Deferred: Domestic 1,102 (1,161 ) (7,418 ) Foreign (747 ) (174 ) (52 ) Total deferred 355 (1,335 ) (7,470 ) Total income tax provision $ 25,206 $ 31,044 $ 26,962 |
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, 2022 2021 2020 U.S. Federal income tax rate of 21 $ 20,650 $ 27,398 $ 22,550 Increase (decrease) in tax rate resulting from: State and local income taxes, net of federal income tax benefit 3,118 4,579 3,781 Income tax (benefit) attributable to foreign income (53 ) (122 ) 330 Other non-deductible items, net 423 (1,277 ) (563 ) Change in valuation allowance 1,068 466 864 Provision for income taxes $ 25,206 $ 31,044 $ 26,962 |
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, 2022 2021 Deferred tax assets: Inventories $ 11,604 $ 12,181 Allowance for customer returns 14,506 14,185 Postretirement benefits 25 33 Allowance for expected credit losses 2,965 1,450 Accrued salaries and benefits 12,048 15,585 Tax credit and NOL carryforwards 5,103 5,702 Accrued asbestos liabilities 17,208 15,463 Other 190 190 63,649 64,789 Valuation allowance (3,155 ) (2,087 ) Total deferred tax assets 60,494 62,702 Deferred tax liabilities: Intangible assets acquired, net of amortization 13,292 13,450 Depreciation 8,715 7,589 Interest rate swap agreement 1,299 — Other 3,530 5,537 Total deferred tax liabilities 26,836 26,576 Net deferred tax assets $ 33,658 $ 36,126 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Reconciliations of Earnings Available to Common Stockholders and Shares used in Calculating Basic and Dilutive Net Earnings per Common Share | The following are reconciliations of the net earnings attributable to SMP and the shares used in calculating basic and dilutive net earnings per common share attributable to SMP (in thousands, except per share data): Year Ended December 31, 2022 2021 2020 Net Earnings Attributable to SMP - Earnings from continuing operations $ 73,042 $ 99,353 $ 80,417 Loss from discontinued operations (17,691 ) (8,467 ) (23,024 ) Net earnings attributable to SMP $ 55,351 $ 90,886 $ 57,393 Basic Net Earnings Per Common Share Attributable to SMP - Earnings from continuing operations per common share $ 3.37 $ 4.49 $ 3.59 Loss from discontinued operations per common share (0.82 ) (0.39 ) (1.02 ) Net earnings per common share attributable to SMP $ 2.55 $ 4.10 $ 2.57 Weighted average common shares outstanding 21,684 22,147 22,374 Diluted Net Earnings Per Common Share Attributable to SMP - Earnings from continuing operations per common share $ 3.30 $ 4.39 $ 3.52 Loss from discontinued operations per common share (0.80 ) (0.37 ) (1.01 ) Net earnings per common share attributable to SMP $ 2.50 $ 4.02 $ 2.51 Weighted average common shares outstanding 21,684 22,147 22,374 Plus incremental shares from assumed conversions: Dilutive effect of restricted stock and performance-based stock 456 469 452 Weighted average common shares outstanding – Diluted 22,140 22,616 22,826 |
Anti-dilutive Securities Excluded from Computation of Earnings per Share | The shares listed below were not included in the computation of diluted net earnings per common share attributable to SMP because to do so would have been anti-dilutive for the periods presented or because they were excluded under the treasury method (in thousands): 2022 2021 2020 Restricted and performance shares 292 269 268 |
Industry Segment and Geograph_2
Industry Segment and Geographic Data (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Industry Segment and Geographic Data [Abstract] | |
Sales and Operating Income by Operating Segments | 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, 2022 2021 2020 Net sales (a): Engine Management $ 975,243 $ 937,936 $ 835,685 Temperature Control 382,285 348,423 281,954 Other 14,287 12,457 10,949 Total net sales $ 1,371,815 $ 1,298,816 $ 1,128,588 Intersegment sales (a) Engine Management $ 22,845 $ 23,599 $ 15,952 Temperature Control 9,728 9,024 6,162 Other (32,573 ) (32,623 ) (22,114 ) Total intersegment sales $ — $ — $ — Depreciation and Amortization: Engine Management $ 23,289 $ 21,881 $ 20,417 Temperature Control 3,266 3,626 4,035 Other 1,743 1,736 1,871 Total depreciation and amortization $ 28,298 $ 27,243 $ 26,323 Operating income (loss) Engine Management $ 91,047 $ 117,367 $ 111,217 Temperature Control 31,712 36,997 21,296 Other (18,624 ) (25,365 ) (23,618 ) Total operating income $ 104,135 $ 128,999 $ 108,895 Investment in unconsolidated affiliates: Engine Management $ 2,490 $ 2,729 $ 2,428 Temperature Control 39,255 41,358 38,079 Other — — — Total investment in unconsolidated affiliates $ 41,745 $ 44,087 $ 40,507 Capital expenditures Engine Management $ 19,306 $ 21,922 $ 13,496 Temperature Control 4,502 2,586 1,988 Other 2,148 1,367 2,336 Total capital expenditures $ 25,956 $ 25,875 $ 17,820 Total assets Engine Management $ 867,433 $ 845,767 $ 618,210 Temperature Control 283,086 257,114 230,111 Other 104,410 95,080 108,219 Total assets $ 1,254,929 $ 1,197,961 $ 956,540 (a) Segment 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, 2022 2021 2020 (In thousands) Operating income $ 104,135 $ 128,999 $ 108,895 Other non-operating income, net 4,814 3,494 812 Interest expense 10,617 2,028 2,328 Earnings from continuing operations before income taxes 98,332 130,465 107,379 Provision for income taxes 25,206 31,044 26,962 Earnings from continuing operations 73,126 99,421 80,417 Discontinued operations, net of tax (17,691 ) (8,467 ) (23,024 ) Net earnings $ 55,435 $ 90,954 $ 57,393 |
Long-lived Assets by Geographical Areas | December 31, 2022 2021 2020 Long-lived assets (a) (In thousands) United States $ 326,199 $ 315,983 $ 241,053 Asia 76,766 80,175 40,621 Europe 38,351 37,892 16,504 Mexico 10,355 12,119 10,586 Canada 7,161 4,461 4,470 Total long-lived assets $ 458,832 $ 450,630 $ 313,234 (a) Long-lived assets are attributed to countries based upon the location of the assets. |
Net Sales (Tables)
Net Sales (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Net Sales [Abstract] | |
Disaggregation of Net Sales | The following tables provide disaggregation of net sales information for the years ended December 31, 2022, 2021 and 2020 (in thousands): Year Ended December 31, 2022 Engine Management Temperature Control Other (b) Total Geographic Area: United States $ 849,858 $ 359,246 $ — $ 1,209,104 Canada 32,410 19,894 14,287 66,591 Europe 37,098 1,422 — 38,520 Mexico 30,917 400 — 31,317 Asia 18,830 356 — 19,186 Other foreign 6,130 967 — 7,097 Total $ 975,243 $ 382,285 $ 14,287 $ 1,371,815 Major Product Group: Ignition, emission control, fuel and safety related system products $ 824,677 $ — $ 10,775 $ 835,452 Wire and cable 150,566 — (223 ) 150,343 Compressors — 222,532 1,813 224,345 Other climate control parts — 159,753 1,922 161,675 Total $ 975,243 $ 382,285 $ 14,287 $ 1,371,815 Major Sales Channel: Aftermarket $ 709,128 $ 343,702 $ 14,287 $ 1,067,117 OE/OES 234,092 35,915 — 270,007 Export 32,023 2,668 — 34,691 Total $ 975,243 $ 382,285 $ 14,287 $ 1,371,815 Year Ended December 31, 2021 Engine Management Temperature Control Other (b) Total Geographic Area: United States $ 804,398 $ 329,980 $ — $ 1,134,378 Canada 33,590 16,513 12,457 62,560 Europe 27,293 390 — 27,683 Mexico 25,288 358 — 25,646 Asia 40,668 348 — 41,016 Other foreign 6,699 834 — 7,533 Total $ 937,936 $ 348,423 $ 12,457 $ 1,298,816 Major Product Group: Ignition, emission control, fuel and safety related system products $ 786,514 $ — $ 8,956 $ 795,470 Wire and cable 151,422 — (275 ) 151,147 Compressors — 206,697 1,434 208,131 Other climate control parts — 141,726 2,342 144,068 Total $ 937,936 $ 348,423 $ 12,457 $ 1,298,816 Major Sales Channel: Aftermarket $ 702,473 $ 317,804 $ 12,457 $ 1,032,734 OE/OES 208,760 28,545 — 237,305 Export 26,703 2,074 — 28,777 Total $ 937,936 $ 348,423 $ 12,457 $ 1,298,816 Year Ended December 31, 2020 Engine Management Temperature Control Other (b) Total Geographic Area: United States $ 738,521 $ 268,680 $ — $ 1,007,201 Canada 25,842 11,679 10,949 48,470 Europe 12,255 351 — 12,606 Mexico 19,336 271 — 19,607 Asia 35,079 165 — 35,244 Other foreign 4,652 808 — 5,460 Total $ 835,685 $ 281,954 $ 10,949 $ 1,128,588 Major Product Group: Ignition, emission control, fuel and safety related system products $ 691,722 $ — $ 8,172 $ 699,894 Wire and cable 143,963 — 159 144,122 Compressors — 163,071 812 163,883 Other climate control parts — 118,883 1,806 120,689 Total $ 835,685 $ 281,954 $ 10,949 $ 1,128,588 Major Sales Channel: Aftermarket $ 674,744 $ 263,690 $ 10,949 $ 949,383 OE/OES 142,072 17,096 — 159,168 Export 18,869 1,168 — 20,037 Total $ 835,685 $ 281,954 $ 10,949 $ 1,128,588 (a) Segment net sales include intersegment sales in our Engine Management and Temperature Control segments (b) Other consists of the elimination of intersegment sales from our Engine Management and Temperature Control segments as well as sales from our Canadian business unit that does not meet the criteria of a reportable operating segment. Intersegment wire and cable sales for the years ended December 31, 2022 and 2021 exceeded third party sales from our Canadian business unit. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies [Abstract] | |
Rent Expense | Total rent expense for the three years ended December 31, 2022 was as follows (in thousands): Total Real Estate Other 2022 $ 14,135 $ 11,385 $ 2,750 2021 12,065 9,500 2,565 2020 11,669 8,290 3,379 (1) In cludes expenses of approximately $2.7 million and $ million for the years ended December 31, 2022 and 2021, respectively, related to non-lease components such as maintenance, property taxes, etc., and operating lease expense for leases with an initial term of 12 months or less, which is no |
Changes in Product Warranties | The following table provides the changes in our product warranties: December 31, 2022 2021 (In thousands) Balance, beginning of period $ 17,463 $ 17,663 Liabilities accrued for current year sales 112,477 91,908 Settlements of warranty claims (110,273 ) (92,108 ) Balance, end of period $ 19,667 $ 17,463 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies, Principles of Consolidation (Details) | Dec. 31, 2022 |
Principles of Consolidation [Abstract] | |
Equity ownership in entities included in consolidated financial statements, minimum | 50% |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies, Allowance for Expected Credit Losses and Cash Discounts (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 USD ($) Customer | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Allowance for Expected Credit Losses and Cash Discounts [Abstract] | |||
Number of customers who filed a petition | Customer | 1 | ||
Customer bankruptcy charge | $ | $ 7,002 | $ 0 | $ 0 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies, Inventories (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Inventory [Abstract] | ||
Inventory reserve | $ 42.5 | $ 46.2 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies, Property, Plant and Equipment (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Buildings [Member] | Minimum [Member] | |
Property, Plant and Equipment [Abstract] | |
Estimated useful life | 25 years |
Buildings [Member] | Maximum [Member] | |
Property, Plant and Equipment [Abstract] | |
Estimated useful life | 33 years 6 months |
Building Improvements [Member] | Minimum [Member] | |
Property, Plant and Equipment [Abstract] | |
Estimated useful life | 10 years |
Building Improvements [Member] | Maximum [Member] | |
Property, Plant and Equipment [Abstract] | |
Estimated useful life | 25 years |
Machinery and Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Abstract] | |
Estimated useful life | 5 years |
Machinery and Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Abstract] | |
Estimated useful life | 12 years |
Tools, Dies and Auxiliary Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Abstract] | |
Estimated useful life | 3 years |
Tools, Dies and Auxiliary Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Abstract] | |
Estimated useful life | 8 years |
Furniture and Fixtures [Member] | Minimum [Member] | |
Property, Plant and Equipment [Abstract] | |
Estimated useful life | 3 years |
Furniture and Fixtures [Member] | Maximum [Member] | |
Property, Plant and Equipment [Abstract] | |
Estimated useful life | 12 years |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies, Product Warranty and Overstock Returns and Accounting for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Product Warranty and Overstock Returns [Abstract] | ||
Product warranty period | 90 days | |
Accounting for Income Taxes [Abstract] | ||
Valuation allowance | $ 3,155 | $ 2,087 |
Net deferred tax asset | $ 33,658 | $ 36,126 |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies, Concentrations of Credit Risk and Foreign Cash Balances (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 USD ($) Customer | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Concentration Risk [Abstract] | |||
Number of customers who filed a petition | Customer | 1 | ||
Customer bankruptcy charge | $ 7,002 | $ 0 | $ 0 |
Foreign Cash Balances [Abstract] | |||
Foreign cash balance | $ 18,500 | $ 16,600 | |
Customer Concentration Risk [Member] | |||
Concentration Risk [Abstract] | |||
Number of largest individual customers | Customer | 3 | ||
Selling, General and Administrative Expenses [Member] | |||
Concentration Risk [Abstract] | |||
Customer bankruptcy charge | $ 7,000 |
Business Acquisitions and Inv_3
Business Acquisitions and Investments, Investment in Foshan Che Yijia New Energy Technology Co., Ltd (Details) ¥ in Millions | Dec. 31, 2022 USD ($) | Oct. 31, 2022 USD ($) | Oct. 31, 2022 CNY (¥) | Sep. 30, 2022 | Dec. 31, 2021 USD ($) | Aug. 31, 2019 USD ($) |
Investments in and Advances to Affiliates, Balance [Abstract] | ||||||
Investments in unconsolidated affiliates | $ 41,745,000 | $ 44,087,000 | ||||
Foshan Che Yijia New Energy Technology Co., Ltd. [Member] | ||||||
Investments in and Advances to Affiliates, Balance [Abstract] | ||||||
Percentage of equity interest acquired | 33% | 3.55% | 3.55% | 29% | 29% | |
Investments in unconsolidated affiliates | $ 4,098,000 | $ 242,000 | ¥ 1.7 | $ 3,990,000 | $ 5,100,000 | |
Foshan Che Yijia New Energy Technology Co., Ltd. [Member] | Minimum [Member] | ||||||
Investments in and Advances to Affiliates, Balance [Abstract] | ||||||
Percentage of equity interest acquired | 29% | 29% | ||||
Foshan Che Yijia New Energy Technology Co., Ltd. [Member] | Maximum [Member] | ||||||
Investments in and Advances to Affiliates, Balance [Abstract] | ||||||
Percentage of equity interest acquired | 33% | 33% |
Business Acquisitions and Inv_4
Business Acquisitions and Investments, Acquisition of Capital Stock of Kade Trading GmbH (Details) $ in Thousands, € in Millions | 1 Months Ended | 12 Months Ended | |||||
Oct. 31, 2022 USD ($) | Oct. 31, 2022 EUR (€) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Oct. 31, 2022 EUR (€) | ||
Allocation of the Purchase Price, Assets Acquired and Liabilities Assumed [Abstract] | |||||||
Business acquisition annual sales | [1] | $ 1,371,815 | $ 1,298,816 | $ 1,128,588 | |||
Assets acquired and liabilities assumed [Abstract] | |||||||
Operating lease right-of-use assets | 400 | 8,800 | |||||
Goodwill | 132,087 | $ 131,652 | $ 77,837 | ||||
Kade [Member] | |||||||
Business Combination, Description [Abstract] | |||||||
Percentage of entity acquired | 100% | 100% | |||||
Allocation of the Purchase Price, Assets Acquired and Liabilities Assumed [Abstract] | |||||||
Payment to acquire Business | $ 2,700 | € 2.7 | |||||
Earn-out based performance obligation in 2024 and 2025 | 500 | € 0.5 | |||||
Business acquisition annual sales | 6,000 | ||||||
Assets acquired and liabilities assumed [Abstract] | |||||||
Purchase Price | 3,176 | ||||||
Receivables | 790 | ||||||
Inventory | 829 | ||||||
Other current assets | [2] | 1,003 | |||||
Property, plant, and equipment, net | 63 | ||||||
Operating lease right-of-use assets | 401 | ||||||
Intangible assets | 2,395 | ||||||
Goodwill | 766 | ||||||
Current liabilities | (1,977) | ||||||
Noncurrent operating lease liabilities | (328) | ||||||
Deferred income taxes | (766) | ||||||
Net assets acquired | 3,176 | ||||||
Cash acquired | $ 1,000 | ||||||
Revenues from acquisition date | $ 1,300 | ||||||
Kade [Member] | Customer Relationships [Member] | |||||||
Assets acquired and liabilities assumed [Abstract] | |||||||
Estimated useful life of intangible assets | 15 years | ||||||
[1]Segment net sales include intersegment sales in our Engine Management and Temperature Control segments.[2]The other current assets balance includes $1 million of cash acquired. |
Business Acquisitions and Inv_5
Business Acquisitions and Investments, Acquisition of Capital Stock of Stabil Operative Group GmbH (Details) $ in Thousands, € in Millions | 1 Months Ended | 12 Months Ended | ||||
Sep. 30, 2021 USD ($) | Sep. 30, 2021 EUR (€) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | ||
Assets acquired and liabilities assumed [Abstract] | ||||||
Operating lease right-of-use assets | $ 400 | $ 8,800 | ||||
Goodwill | 132,087 | $ 131,652 | $ 77,837 | |||
Stabil [Member] | ||||||
Business Combination, Description [Abstract] | ||||||
Percentage of entity acquired | 100% | |||||
Allocation of the Purchase Price, Assets Acquired and Liabilities Assumed [Abstract] | ||||||
Purchase Price | $ 16,290 | € 13.7 | ||||
Assets acquired and liabilities assumed [Abstract] | ||||||
Receivables | 2,852 | |||||
Inventory | 5,126 | |||||
Other current assets | [1] | 1,628 | ||||
Property, plant, and equipment, net | 1,810 | |||||
Operating lease right-of-use assets | 4,971 | |||||
Intangible assets | 5,471 | |||||
Goodwill | 4,827 | |||||
Current liabilities | (4,190) | |||||
Noncurrent operating lease liabilities | (4,454) | |||||
Deferred income taxes | (1,751) | |||||
Net assets acquired | 16,290 | |||||
Cash acquired | $ 900 | |||||
Revenues from acquisition date | $ 14,900 | |||||
Stabil [Member] | Customer Relationships [Member] | ||||||
Assets acquired and liabilities assumed [Abstract] | ||||||
Estimated useful life of intangible assets | 20 years | |||||
[1]The other current assets balance includes $0.9 million of cash acquired. |
Business Acquisitions and Inv_6
Business Acquisitions and Investments, Acquisition of Capital Stock of Trumpet Holdings, Inc. (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |||
May 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Assets acquired and liabilities assumed [Abstract] | |||||
Operating lease right-of-use assets | $ 400 | $ 8,800 | |||
Goodwill | 132,087 | $ 131,652 | $ 77,837 | ||
Trombetta [Member] | |||||
Business Combination, Description [Abstract] | |||||
Percentage of entity acquired | 100% | ||||
Allocation of the Purchase Price, Assets Acquired and Liabilities Assumed [Abstract] | |||||
Purchase Price | $ 111,711 | ||||
Assets acquired and liabilities assumed [Abstract] | |||||
Receivables | 9,173 | ||||
Inventory | 12,460 | ||||
Other current assets | [1] | 5,193 | |||
Property, plant, and equipment, net | 4,939 | ||||
Operating lease right-of-use assets | 3,847 | ||||
Intangible assets | 54,700 | ||||
Goodwill | 49,250 | ||||
Current liabilities | (5,072) | ||||
Noncurrent operating lease liabilities | (3,065) | ||||
Deferred income taxes | (8,210) | ||||
Subtotal | 123,215 | ||||
Fair value of acquired noncontrolling interest | (11,504) | ||||
Net assets acquired | 111,711 | ||||
Cash acquired | 4,600 | ||||
Revenues from acquisition date | $ 27,400 | ||||
Trombetta [Member] | Customer Relationships [Member] | |||||
Assets acquired and liabilities assumed [Abstract] | |||||
Intangible assets | 39,400 | ||||
Estimated useful life of intangible assets | 20 years | ||||
Trombetta [Member] | Developed Technology [Member] | |||||
Assets acquired and liabilities assumed [Abstract] | |||||
Intangible assets | 13,400 | ||||
Estimated useful life of intangible assets | 15 years | ||||
Trombetta [Member] | Trade Names [Member] | |||||
Assets acquired and liabilities assumed [Abstract] | |||||
Intangible assets | $ 1,900 | ||||
Estimated useful life of intangible assets | 10 years | ||||
Trombetta [Member] | Trombetta Asia, Ltd [Member] | |||||
Business Combination, Description [Abstract] | |||||
Percentage of entity acquired | 70% | ||||
[1]The other current assets balance includes $4.6 million of cash acquired. |
Business Acquisitions and Inv_7
Business Acquisitions and Investments, Acquisition of Particulate Matter Sensor Business of Stoneridge, Inc. (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |
Nov. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2022 | |
Soot Sensor [Member] | |||
Allocation of the Purchase Price, Assets Acquired and Liabilities Assumed [Abstract] | |||
Purchase Price | $ 2,924 | ||
Assets acquired and liabilities assumed [Abstract] | |||
Inventory | 1,032 | ||
Machinery and equipment, net | 1,137 | ||
Intangible assets | 755 | ||
Net assets acquired | 2,924 | ||
Business Combination, Description [Abstract] | |||
Revenues from acquisition date | $ 2,300 | ||
Soot Sensor [Member] | Customer Relationships [Member] | |||
Assets acquired and liabilities assumed [Abstract] | |||
Intangible assets | 800 | ||
Business Combination, Description [Abstract] | |||
Estimated useful life of intangible assets | 10 years | ||
Lexington, Ohio Facility [Member] | |||
Allocation of the Purchase Price, Assets Acquired and Liabilities Assumed [Abstract] | |||
Purchase Price | $ 2,900 | ||
Tallinn, Estonia Facility [Member] | |||
Allocation of the Purchase Price, Assets Acquired and Liabilities Assumed [Abstract] | |||
Purchase Price | $ 2,900 |
Restructuring and Integration_3
Restructuring and Integration Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Restructuring and integration activities [Roll Forward] | ||||
Exit activity liability, beginning of period | $ 79 | $ 179 | ||
Restructuring and integration costs provided for during the period | 1,891 | [1] | 392 | $ 464 |
Cash payments | (160) | (492) | ||
Reclassification of environmental and other liabilities | (289) | |||
Exit activity liability, end of period | 1,521 | 79 | 179 | |
Reclassification of environment liability | (200) | |||
Restructuring Costs [Abstract] | ||||
Sales force reduction costs | 900 | |||
Employee severance costs | 600 | |||
Expected future restructuring costs | 3,400 | |||
Soot Sensor Product Line Relocation [Member] | ||||
Restructuring and integration activities [Roll Forward] | ||||
Cash payments | (144) | (392) | ||
Exit activity liability, end of period | 0 | |||
Plant Rationalization Programs [Member] | ||||
Restructuring and integration activities [Roll Forward] | ||||
Cash payments | (16) | (100) | ||
Exit activity liability, end of period | 0 | |||
Workforce Reduction [Member] | ||||
Restructuring and integration activities [Roll Forward] | ||||
Exit activity liability, beginning of period | 79 | 179 | ||
Restructuring and integration costs provided for during the period | 1,521 | [1] | 0 | |
Cash payments | (16) | (100) | ||
Reclassification of environmental and other liabilities | (63) | |||
Exit activity liability, end of period | 1,521 | 79 | 179 | |
Other Exit Costs [Member] | ||||
Restructuring and integration activities [Roll Forward] | ||||
Exit activity liability, beginning of period | 0 | 0 | ||
Restructuring and integration costs provided for during the period | 370 | [1] | 392 | |
Cash payments | (144) | (392) | ||
Reclassification of environmental and other liabilities | (226) | |||
Exit activity liability, end of period | $ 0 | $ 0 | $ 0 | |
[1]Included in restructuring and integration costs in 2022 is a $0.2 million increase in environmental cleanup costs related to ongoing monitoring and remediation in connection with the prior closure of our manufacturing operations at our Long Island City, New York location. The environmental liability has been reclassed to accrued liabilities as of December 31, 2022. |
Sale of Receivables (Details)
Sale of Receivables (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Sale of Receivables [Abstract] | |||
Sale of receivables to financial institutions | $ 813.7 | $ 818.8 | |
Receivables not yet collected | 0 | 1.3 | |
Charge related to sale of receivables | $ 32 | $ 11.5 | $ 12.2 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Inventories [Abstract] | ||
Finished goods | $ 324,362 | $ 296,739 |
Work-in-process | 14,099 | 16,010 |
Raw materials | 190,254 | 156,006 |
Subtotal | 528,715 | 468,755 |
Unreturned customer inventories | 19,695 | 22,268 |
Total inventories | $ 548,410 | $ 491,023 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Property, plant and equipment [Abstract] | |||
Total property, plant and equipment | $ 346,324 | $ 330,574 | |
Less accumulated depreciation | 239,176 | 227,788 | |
Total property, plant and equipment, net | 107,148 | 102,786 | |
Depreciation expense | 19,000 | 18,200 | $ 17,800 |
Land, Buildings and Improvements [Member] | |||
Property, plant and equipment [Abstract] | |||
Total property, plant and equipment | 42,651 | 40,882 | |
Machinery and Equipment [Member] | |||
Property, plant and equipment [Abstract] | |||
Total property, plant and equipment | 166,149 | 159,967 | |
Tools, Dies and Auxiliary Equipment [Member] | |||
Property, plant and equipment [Abstract] | |||
Total property, plant and equipment | 67,017 | 63,944 | |
Furniture and Fixtures [Member] | |||
Property, plant and equipment [Abstract] | |||
Total property, plant and equipment | 32,084 | 30,688 | |
Leasehold Improvements [Member] | |||
Property, plant and equipment [Abstract] | |||
Total property, plant and equipment | 15,083 | 14,081 | |
Construction-in-Progress [Member] | |||
Property, plant and equipment [Abstract] | |||
Total property, plant and equipment | $ 23,340 | $ 21,012 |
Leases (Details)
Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | ||
Quantitative Lease Disclosures [Abstract] | |||
Renewal option period | 5 years | ||
Assets [Abstract] | |||
Operating lease right-of-use assets | $ 49,838 | $ 40,469 | |
Liabilities [Abstract] | |||
Sundry payables and accrued expenses | 10,763 | 10,544 | |
Noncurrent operating lease liabilities | 40,709 | 31,206 | |
Total operating lease liabilities | $ 51,472 | $ 41,750 | |
Operating Leases [Abstract] | |||
Weighted average remaining lease term | 7 years | 5 years 3 months 18 days | |
Weighted average discount rate | 3.70% | 3% | |
Lease Expense [Abstract] | |||
Operating lease expense | [1] | $ 11,411 | $ 10,051 |
Excluded expenses of non lease | 2,700 | 2,000 | |
Cash paid for the amounts included in the measurement of lease liabilities [Abstract] | |||
Operating cash flows from operating leases | 11,293 | 9,985 | |
Right-of-use assets obtained in exchange for new lease obligations [Abstract] | |||
Operating leases | [2] | 31,064 | 20,975 |
Right-of-use assets related to lease modifications and extension | 21,600 | ||
Right-of use assets obtained in business acquisitions | 400 | 8,800 | |
Minimum Lease Payments [Abstract] | |||
2,023 | 10,956 | ||
2,024 | 9,770 | ||
2,025 | 7,179 | ||
2,026 | 6,268 | ||
2,027 | 5,383 | ||
Thereafter | 20,633 | ||
Total lease payments | 60,189 | ||
Less: Interest | (8,717) | ||
Total operating lease liabilities | $ 51,472 | $ 41,750 | |
Maximum [Member] | |||
Quantitative Lease Disclosures [Abstract] | |||
Remaining operating lease terms | 11 years | ||
[1]Excludes expenses of approximately $2.7 million and $2 million for the years ended December 31, 2022 and 2021, respectively, related to non-lease components such as maintenance, property taxes, etc., and operating lease expense for leases with an initial term of 12 months or less, which is not material.[2]Includes $21.6 million of right-of-use assets related to the lease modification and extension for our executive offices in Long Island City, New York during year ended December 31, 2022, and right-of-use assets obtained in business acquisitions of $0.4 million and $8.8 million during the years ended December 31, 2022 and 2021, respectively. |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets, Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Goodwill by operating segment [Abstract] | ||
Goodwill gross, beginning balance | $ 170,140 | $ 116,325 |
Goodwill accumulated impairment losses, Beginning balance | (38,488) | (38,488) |
Goodwill net, beginning balance | 131,652 | 77,837 |
Goodwill foreign currency exchange rate change | (262) | |
Goodwill gross, ending balance | 170,575 | 170,140 |
Goodwill accumulated impairment losses, Ending balance | (38,488) | (38,488) |
Goodwill net, ending balance | 132,087 | 131,652 |
Trombetta [Member] | ||
Goodwill by operating segment [Abstract] | ||
Goodwill acquisition | 49,250 | |
Stabil [Member] | ||
Goodwill by operating segment [Abstract] | ||
Goodwill acquisition | 4,827 | |
Goodwill foreign currency exchange rate change | (331) | |
Kade Trading GmbH [Member] | ||
Goodwill by operating segment [Abstract] | ||
Goodwill acquisition | 766 | |
Engine Management [Member] | ||
Goodwill by operating segment [Abstract] | ||
Goodwill gross, beginning balance | 155,870 | 102,055 |
Goodwill accumulated impairment losses, Beginning balance | (38,488) | (38,488) |
Goodwill net, beginning balance | 117,382 | 63,567 |
Goodwill foreign currency exchange rate change | (402) | (262) |
Goodwill gross, ending balance | 155,468 | 155,870 |
Goodwill accumulated impairment losses, Ending balance | (38,488) | (38,488) |
Goodwill net, ending balance | 116,980 | 117,382 |
Engine Management [Member] | Trombetta [Member] | ||
Goodwill by operating segment [Abstract] | ||
Goodwill acquisition | 49,250 | |
Engine Management [Member] | Stabil [Member] | ||
Goodwill by operating segment [Abstract] | ||
Goodwill acquisition | 4,827 | |
Engine Management [Member] | Kade Trading GmbH [Member] | ||
Goodwill by operating segment [Abstract] | ||
Goodwill acquisition | 0 | |
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 | 71 | 0 |
Goodwill gross, ending balance | 15,107 | 14,270 |
Goodwill accumulated impairment losses, Ending balance | 0 | 0 |
Goodwill net, ending balance | 15,107 | $ 14,270 |
Temperature Control [Member] | Trombetta [Member] | ||
Goodwill by operating segment [Abstract] | ||
Goodwill acquisition | 0 | |
Temperature Control [Member] | Stabil [Member] | ||
Goodwill by operating segment [Abstract] | ||
Goodwill acquisition | 0 | |
Temperature Control [Member] | Kade Trading GmbH [Member] | ||
Goodwill by operating segment [Abstract] | ||
Goodwill acquisition | $ 766 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets, Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||||
Total acquired intangible assets | $ 185,962 | $ 184,263 | ||
Less accumulated amortization | [1] | (86,945) | (78,932) | |
Net acquired intangible assets | 99,017 | 105,331 | ||
Amortization of acquired intangible assets [Abstract] | ||||
Amortization expense | 8,600 | 8,700 | $ 8,200 | |
Estimated amortization expense in year 2023 | 8,500 | |||
Estimated amortization expense in year 2024 | 8,400 | |||
Estimated amortization expense in years 2025 through 2041 | 8,400 | |||
Estimated amortization expense in years 2026 through 2041 | 8,400 | |||
Estimated amortization expense in years 2027 through 2041 | 62,700 | |||
Customer Relationships [Member] | ||||
Finite-Lived Intangible Assets, Net [Abstract] | ||||
Total acquired intangible assets | 158,717 | 157,020 | ||
Patents, Developed Technology and Intellectual Property [Member] | ||||
Finite-Lived Intangible Assets, Net [Abstract] | ||||
Total acquired intangible assets | 14,123 | 14,123 | ||
Trademarks and Trade Names [Member] | ||||
Finite-Lived Intangible Assets, Net [Abstract] | ||||
Total acquired intangible assets | 8,880 | 8,880 | ||
Intangible assets acquired [Abstract] | ||||
Amount of acquired indefinite-lived intangible assets | 2,600 | |||
Non-Compete Agreements [Member] | ||||
Finite-Lived Intangible Assets, Net [Abstract] | ||||
Total acquired intangible assets | 3,282 | 3,280 | ||
Supply Agreements [Member] | ||||
Finite-Lived Intangible Assets, Net [Abstract] | ||||
Total acquired intangible assets | 800 | 800 | ||
Leaseholds [Member] | ||||
Finite-Lived Intangible Assets, Net [Abstract] | ||||
Total acquired intangible assets | 160 | 160 | ||
Computer Software [Member] | ||||
Other Intangible Assets [Abstract] | ||||
Other intangible assets | 18,700 | 17,400 | ||
Accumulated computer software amortization | (17,200) | (16,500) | ||
Amortization of computer software | $ 700 | $ 300 | $ 300 | |
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 a related trademark/trade name totaling $2.6 million, which has an indefinite useful life and, as such, is not being amortized. |
Investments in Unconsolidated_3
Investments in Unconsolidated Affiliates (Details) ¥ in Millions | 12 Months Ended | |||||||||
Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Oct. 31, 2022 USD ($) | Oct. 31, 2022 CNY (¥) | Sep. 30, 2022 | Aug. 31, 2019 USD ($) | Mar. 31, 2018 USD ($) | Nov. 30, 2017 USD ($) | Apr. 30, 2014 USD ($) | Jan. 31, 2013 USD ($) | |
Investments in and Advances to Affiliates, Balance [Abstract] | ||||||||||
Investments in unconsolidated affiliates | $ 41,745,000 | $ 44,087,000 | ||||||||
Outstanding borrowings | 239,620,000 | 128,436,000 | ||||||||
Foshan GWOYNG SMP Vehicle Climate Control & Cooling Products Co. Ltd. [Member] | ||||||||||
Investments in and Advances to Affiliates, Balance [Abstract] | ||||||||||
Investments in unconsolidated affiliates | $ 18,410,000 | 20,692,000 | $ 4,200,000 | $ 14,000,000 | ||||||
Percentage of equity interest acquired | 65% | 15% | 50% | |||||||
Purchases from equity method investment | $ 16,100,000 | 15,900,000 | ||||||||
Foshan FGD SMP Automotive Compressor Co. Ltd [Member] | ||||||||||
Investments in and Advances to Affiliates, Balance [Abstract] | ||||||||||
Investments in unconsolidated affiliates | 16,747,000 | 16,676,000 | $ 12,500,000 | |||||||
Percentage of equity interest acquired | 50% | |||||||||
Purchases from equity method investment | 53,300,000 | 32,200,000 | ||||||||
Foshan Che Yijia New Energy Technology Co., Ltd. [Member] | ||||||||||
Investments in and Advances to Affiliates, Balance [Abstract] | ||||||||||
Investments in unconsolidated affiliates | $ 4,098,000 | 3,990,000 | $ 242,000 | ¥ 1.7 | $ 5,100,000 | |||||
Percentage of equity interest acquired | 33% | 3.55% | 3.55% | 29% | 29% | |||||
Maximum borrowing capacity | $ 4,000,000 | |||||||||
Interest rate | 5% | |||||||||
Maturity date | Nov. 30, 2023 | |||||||||
Outstanding borrowings | $ 4,000,000 | |||||||||
Orange Electronic Co., Ltd [Member] | ||||||||||
Investments in and Advances to Affiliates, Balance [Abstract] | ||||||||||
Investments in unconsolidated affiliates | $ 2,490,000 | $ 2,729,000 | $ 6,300,000 | |||||||
Percentage of equity interest acquired | 19.40% | |||||||||
Purchases from equity method investment | $ 4,100,000 | $ 7,800,000 |
Other Assets (Details)
Other Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Other Assets [Abstract] | ||
Deferred compensation | $ 20,190 | $ 23,623 |
Noncurrent portion of interest rate swap fair value | 3,091 | 0 |
Long term receivables | 1,944 | 971 |
Deferred financing costs, net | 1,603 | 206 |
Other | 682 | 602 |
Total other assets, net | $ 27,510 | $ 25,402 |
Credit Facilities and Long-Te_3
Credit Facilities and Long-Term Debt, Total Debt Outstanding (Details) $ in Thousands, zł in Millions | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2021 PLN (zł) | |
Debt Instruments [Abstract] | ||||
Total debt | $ 239,620 | $ 128,436 | ||
Current maturities of debt | 55,031 | 128,415 | ||
Long-term debt | 184,589 | 21 | ||
Credit Facility - Term Loan Due 2027 [Member] | ||||
Debt Instruments [Abstract] | ||||
Total debt | 97,500 | 0 | ||
Current maturities of debt | 5,000 | |||
Long-term debt | 92,500 | |||
Credit Facility - Revolver Due 2027 [Member] | ||||
Debt Instruments [Abstract] | ||||
Total debt | 142,000 | 0 | ||
Current maturities of debt | 50,000 | |||
Long-term debt | 92,000 | |||
Senior Secured Facility - Revolver Due 2023 [Member] | ||||
Debt Instruments [Abstract] | ||||
Total debt | 0 | 125,298 | ||
Other [Member] | ||||
Debt Instruments [Abstract] | ||||
Total debt | [1] | 120 | 3,138 | |
Current maturities of debt | 31 | |||
Long-term debt | 89 | |||
Line of Credit Facility [Abstract] | ||||
Overdraft facility | $ 0 | $ 3,000 | zł 12.3 | |
[1]Other includes borrowings under our Polish overdraft facility of Zloty 12.3 million (approximately $3 million) as of December 31, 2021. There were no borrowings under the Polish overdraft facility at December 31, 2022. |
Credit Facilities and Long-Te_4
Credit Facilities and Long-Term Debt, Term Loan and Revolving Credit Facilities (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 USD ($) Installment | Dec. 31, 2021 USD ($) | Jun. 30, 2022 USD ($) | Mar. 31, 2022 USD ($) | |
Line of Credit Facility [Abstract] | ||||
Current portion of debt | $ 50,000 | $ 125,298 | ||
Senior Secured Revolving Credit Facility [Member] | ||||
Line of Credit Facility [Abstract] | ||||
Maximum borrowing capacity | $ 300,000 | 250,000 | ||
Line of credit facility, accordian feature | $ 50,000 | |||
Outstanding borrowings under credit facility | 125,300 | |||
Outstanding letters of credit | $ 2,600 | |||
Weighted average interest rate | 1.40% | |||
Senior Secured Revolving Credit Facility [Member] | Alternate Base Rate [Member] | ||||
Line of Credit Facility [Abstract] | ||||
Outstanding borrowings under credit facility | $ 300 | |||
Weighted average interest rate | 3.50% | |||
Average daily loan balance outstanding | $ 1,100 | |||
Senior Secured Revolving Credit Facility [Member] | Direct Borrowings [Member] | ||||
Line of Credit Facility [Abstract] | ||||
Outstanding borrowings under credit facility | $ 125,000 | |||
Weighted average interest rate | 1.40% | |||
Term Loan and Revolving Credit Facilities [Member] | ||||
Line of Credit Facility [Abstract] | ||||
Maximum borrowing capacity | $ 500,000 | |||
Maturity date | Jun. 01, 2027 | |||
Frequency of periodic payment | quarterly | |||
Debt instrument, extension period | 1 year | |||
Borrowing base | $ 168,000 | |||
Maximum consolidated EBITDA | 1 | |||
Net Leverage Ratio | 250% | |||
Outstanding borrowings under credit facility | $ 239,500 | |||
Current portion of debt | 55,000 | |||
Long-term debt | 184,500 | |||
Outstanding letters of credit | $ 2,400 | |||
Weighted average interest rate | 5.20% | |||
Term Loan and Revolving Credit Facilities [Member] | SOFR [Member] | ||||
Line of Credit Facility [Abstract] | ||||
Margin on variable rate | 0.10% | |||
Term of variable rate | 1 month | |||
Interest rate periods | one, three or six months | |||
Outstanding borrowings under credit facility | $ 237,000 | |||
Weighted average interest rate | 5.20% | |||
Term Loan and Revolving Credit Facilities [Member] | Federal Funds Rate [Member] | ||||
Line of Credit Facility [Abstract] | ||||
Margin on variable rate | 0.50% | |||
Term Loan and Revolving Credit Facilities [Member] | Term Benchmark Borrowings [Member] | Minimum [Member] | ||||
Line of Credit Facility [Abstract] | ||||
Margin on variable rate | 1% | |||
Term Loan and Revolving Credit Facilities [Member] | Term Benchmark Borrowings [Member] | Maximum [Member] | ||||
Line of Credit Facility [Abstract] | ||||
Margin on variable rate | 2% | |||
Term Loan and Revolving Credit Facilities [Member] | Alternate Base Rate [Member] | ||||
Line of Credit Facility [Abstract] | ||||
Margin on variable rate | 1% | |||
Outstanding borrowings under credit facility | $ 2,500 | |||
Weighted average interest rate | 8% | |||
Average daily loan balance outstanding | $ 5,600 | |||
Term Loan and Revolving Credit Facilities [Member] | Alternate Base Rate [Member] | Minimum [Member] | ||||
Line of Credit Facility [Abstract] | ||||
Margin on variable rate | 0% | |||
Term Loan and Revolving Credit Facilities [Member] | Alternate Base Rate [Member] | Maximum [Member] | ||||
Line of Credit Facility [Abstract] | ||||
Margin on variable rate | 1% | |||
Term Loan Facility [Member] | ||||
Line of Credit Facility [Abstract] | ||||
Maximum borrowing capacity | 100,000 | |||
Term Loan Facility [Member] | Maximum [Member] | ||||
Line of Credit Facility [Abstract] | ||||
Number of extensions of maturity date | Installment | 2 | |||
Term Loan Facility [Member] | First Four Years [Member] | ||||
Line of Credit Facility [Abstract] | ||||
Periodic payment amortization percentage | 1.25% | |||
Term Loan Facility [Member] | Fifth Year [Member] | ||||
Line of Credit Facility [Abstract] | ||||
Periodic payment amortization percentage | 2.50% | |||
Revolving Credit Facility [Member] | ||||
Line of Credit Facility [Abstract] | ||||
Maximum borrowing capacity | 400,000 | |||
Letter of Credit Sublimit [Member] | ||||
Line of Credit Facility [Abstract] | ||||
Maximum borrowing capacity | $ 25,000 | |||
Swing Line Loans [Member] | ||||
Line of Credit Facility [Abstract] | ||||
Maximum borrowing capacity | 25,000 | |||
Interest Rate Swap Agreement [Member] | ||||
Line of Credit Facility [Abstract] | ||||
Maximum borrowing capacity | $ 100,000 | |||
Period of agreement | 7 years | |||
Outstanding borrowings under credit facility | $ 100,000 | $ 100,000 | ||
Interest Rate Swap Agreement [Member] | SOFR [Member] | ||||
Line of Credit Facility [Abstract] | ||||
Margin on variable rate | 1.50% | |||
Term of variable rate | 1 month |
Credit Facilities and Long-Te_5
Credit Facilities and Long-Term Debt, Polish Overdraft Facility (Details) - Polish Overdraft Facility [Member] zł in Millions, $ in Millions | 12 Months Ended | ||||
Dec. 31, 2022 USD ($) | Oct. 31, 2022 USD ($) | Oct. 31, 2022 PLN (zł) | Dec. 31, 2021 USD ($) | Dec. 31, 2021 PLN (zł) | |
Line of Credit Facility [Abstract] | |||||
Maximum borrowing capacity | $ 6.8 | zł 30 | |||
Threshold percentage of borrowing capacity | 85% | ||||
Threshold borrowing capacity limit | $ 5.8 | ||||
Overdraft facility renewal period | 3 months | ||||
Overdraft facility cancellation period | 30 days | ||||
Overdraft facility | $ 0 | $ 3 | zł 12.3 | ||
1M WIBOR [Member] | |||||
Line of Credit Facility [Abstract] | |||||
Basis spread on variable rate | 1.50% | ||||
1M EURIBOR [Member] | |||||
Line of Credit Facility [Abstract] | |||||
Basis spread on variable rate | 1.50% | ||||
Mid-Point of Fed Target Range [Member] | |||||
Line of Credit Facility [Abstract] | |||||
Basis spread on variable rate | 1.75% |
Credit Facilities and Long-Te_6
Credit Facilities and Long-Term Debt, Maturities of Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | |
Maturities of Debt [Abstract] | |||
2023 | $ 5,120 | ||
2024 | 5,000 | ||
2025 | 5,000 | ||
2026 | 7,500 | ||
2027 | 217,000 | ||
Total debt | 239,620 | $ 128,436 | |
Less: current maturities | (55,031) | (128,415) | |
Long-term debt | 184,589 | 21 | |
Revolving Credit Facility [Member] | |||
Maturities of Debt [Abstract] | |||
2023 | 0 | ||
2024 | 0 | ||
2025 | 0 | ||
2026 | 0 | ||
2027 | 142,000 | ||
Total debt | 142,000 | 0 | |
Less: current maturities | (50,000) | ||
Long-term debt | 92,000 | ||
Term Loan Facility [Member] | |||
Maturities of Debt [Abstract] | |||
2023 | 5,000 | ||
2024 | 5,000 | ||
2025 | 5,000 | ||
2026 | 7,500 | ||
2027 | 75,000 | ||
Total debt | 97,500 | 0 | |
Less: current maturities | (5,000) | ||
Long-term debt | 92,500 | ||
Polish Overdraft Facility and Other Debt [Member] | |||
Maturities of Debt [Abstract] | |||
2023 | 120 | ||
2024 | 0 | ||
2025 | 0 | ||
2026 | 0 | ||
2027 | 0 | ||
Total debt | [1] | 120 | $ 3,138 |
Less: current maturities | (31) | ||
Long-term debt | $ 89 | ||
[1]Other includes borrowings under our Polish overdraft facility of Zloty 12.3 million (approximately $3 million) as of December 31, 2021. There were no borrowings under the Polish overdraft facility at December 31, 2022. |
Credit Facilities and Long-Te_7
Credit Facilities and Long-Term Debt, Deferred Financing Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | |
Deferred Financing Costs [Abstract] | ||||
Deferred financing costs | $ 2,093 | $ 400 | ||
Write off of unamortized deferred financing costs | 40,000 | |||
Deferred Finance Costs, Amortization [Abstract] | ||||
2023 | 491 | |||
2024 | 478 | |||
2025 | 469 | |||
2026 | 464 | |||
2027 | 191 | |||
Total amortization | $ 2,093 | $ 400 | ||
Term Loan and Revolving Credit Facilities [Member] | ||||
Deferred Financing Costs [Abstract] | ||||
Deferred financing costs | $ 1,900 | $ 200 | ||
Deferred Finance Costs, Amortization [Abstract] | ||||
Total amortization | $ 1,900 | $ 200 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income, Changes in Accumulated Other Comprehensive Income by Component (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | ||
Changes in Accumulated Other Comprehensive Income by Component [Roll Forward] | |||
Balance attributable to SMP | $ 601,580,000 | ||
Other comprehensive income before reclassifications | (4,312,000) | $ (2,477,000) | |
Amounts reclassified from accumulated other comprehensive income | 11,000 | (16,000) | |
Other comprehensive income, net | (4,301,000) | (2,493,000) | |
Balance attributable to SMP | 610,020,000 | 601,580,000 | |
Reclassification out of Accumulated Other Comprehensive Income [Member] | |||
Changes in Accumulated Other Comprehensive Income by Component [Roll Forward] | |||
Unrecognized gain relating to change in fair value of cash flow interest rate hedge | 5,200,000 | ||
Unrecognized gain relating to change in fair value of cash flow interest rate hedge, net of tax | 3,800,000 | ||
Unrecognized gain, net of cash settlements payments | 42,000 | ||
Unrecognized gain, net of cash settlements payments, net of tax | 31,000 | ||
Accumulated Other Comprehensive Income (Loss) [Member] | |||
Changes in Accumulated Other Comprehensive Income by Component [Roll Forward] | |||
Balance attributable to SMP | (8,169,000) | (5,676,000) | |
Balance attributable to SMP | (12,470,000) | (8,169,000) | |
Foreign Currency Translation [Member] | |||
Changes in Accumulated Other Comprehensive Income by Component [Roll Forward] | |||
Balance attributable to SMP | (8,221,000) | (5,744,000) | |
Other comprehensive income before reclassifications | (8,109,000) | (2,477,000) | |
Amounts reclassified from accumulated other comprehensive income | 0 | 0 | |
Other comprehensive income, net | (8,109,000) | (2,477,000) | |
Balance attributable to SMP | (16,330,000) | (8,221,000) | |
Unrecognized Postretirement Benefit Costs (Credit) [Member] | |||
Changes in Accumulated Other Comprehensive Income by Component [Roll Forward] | |||
Balance attributable to SMP | 52,000 | 68,000 | |
Other comprehensive income before reclassifications | 0 | 0 | |
Amounts reclassified from accumulated other comprehensive income | (15,000) | (16,000) | |
Other comprehensive income, net | (15,000) | (16,000) | |
Balance attributable to SMP | 37,000 | 52,000 | |
Unrealized Derivative Gains (Losses) [Member] | |||
Changes in Accumulated Other Comprehensive Income by Component [Roll Forward] | |||
Balance attributable to SMP | 0 | 0 | |
Other comprehensive income before reclassifications | 3,797,000 | [1] | 0 |
Amounts reclassified from accumulated other comprehensive income | 26,000 | 0 | |
Other comprehensive income, net | 3,823,000 | 0 | |
Balance attributable to SMP | $ 3,823,000 | $ 0 | |
[1]Consists of the unrecognized gain relating to the change in fair value of the cash flow interest rate hedge of $5.2 million ($3.8 million, net of tax), net of cash settlements payments of $42,000 ($31,000, net of tax) in the year ended December 31, 2022. |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income, Reclassifications Out of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Details About Accumulated Other Comprehensive Income Components [Abstract] | ||||
Interest expense | $ 10,617 | $ 2,028 | $ 2,328 | |
Other non-operating income, net | 4,814 | 3,494 | 812 | |
Earnings from continuing operations before income taxes | 98,332 | 130,465 | 107,379 | |
Income tax expense (benefit) | 25,206 | 31,044 | 26,962 | |
Net earnings attributable to SMP | [1] | 55,351 | 90,886 | $ 57,393 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
Details About Accumulated Other Comprehensive Income Components [Abstract] | ||||
Earnings from continuing operations before income taxes | 10 | (27) | ||
Income tax expense (benefit) | (1) | (11) | ||
Net earnings attributable to SMP | 11 | (16) | ||
Unrealized Derivative Gains (Losses) [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
Details About Accumulated Other Comprehensive Income Components [Abstract] | ||||
Interest expense | [2] | 35 | 0 | |
Unrecognized Postretirement Benefit Costs (Credit) [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
Details About Accumulated Other Comprehensive Income Components [Abstract] | ||||
Other non-operating income, net | [3] | $ (25) | $ (27) | |
[1]Throughout this Form 10-K, “SMP” refers to Standard Motor Products, Inc. and subsidiaries.[2]Unrecognized accumulated other comprehensive income (loss) related to the cash flow interest rate hedge is reclassified to earnings and reported as part of interest expense in our consolidated statements of operations when the interest payments on the underlying borrowings are recognized.[3] Unrecognized |
Stockholders' Equity (Details)
Stockholders' Equity (Details) $ / shares in Units, $ in Thousands | 6 Months Ended | 12 Months Ended | ||||||
Dec. 31, 2022 $ / shares shares | Dec. 31, 2022 USD ($) Vote $ / shares shares | Dec. 31, 2021 USD ($) shares | Dec. 31, 2020 USD ($) shares | Jul. 31, 2022 USD ($) | Oct. 31, 2021 USD ($) | Feb. 28, 2021 USD ($) | Mar. 31, 2020 USD ($) | |
Preferred Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ||||||||
Stock repurchased during period | $ 29,656 | $ 26,862 | $ 13,482 | |||||
Preferred Stock [Member] | ||||||||
Preferred Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ||||||||
Preferred stock, shares authorized (in shares) | shares | 500,000 | 500,000 | ||||||
Preferred stock, par value (in dollars per share) | $ / shares | $ 20 | $ 20 | ||||||
Preferred stock, shares outstanding (in shares) | shares | 0 | 0 | 0 | |||||
Series A Preferred Stock [Member] | ||||||||
Preferred Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ||||||||
Preferred stock, shares authorized (in shares) | shares | 30,000 | 30,000 | ||||||
Number of votes per share | Vote | 1,000 | |||||||
Stock Repurchase Program 2020 [Member] | ||||||||
Preferred Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ||||||||
Stock repurchase program, authorized amount | $ 20,000 | |||||||
Stock repurchased during period (in shares) | shares | 150,273 | 323,867 | ||||||
Stock repurchased during period | $ 6,500 | $ 13,500 | ||||||
Stock Repurchase Program 2021, February [Member] | ||||||||
Preferred Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ||||||||
Stock repurchase program, authorized amount | $ 20,000 | |||||||
Stock repurchased during period (in shares) | shares | 464,992 | |||||||
Stock repurchased during period | $ 20,000 | |||||||
Stock Repurchase Program 2021, October [Member] | ||||||||
Preferred Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ||||||||
Stock repurchase program, authorized amount | $ 30,000 | |||||||
Stock repurchased during period (in shares) | shares | 692,067 | 7,000 | ||||||
Stock repurchased during period | $ 29,700 | $ 300 | ||||||
Stock Repurchase Program 2022, July [Member] | ||||||||
Preferred Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ||||||||
Stock repurchase program, authorized amount | $ 30,000 | |||||||
Stock repurchased during period (in shares) | shares | 0 |
Stock-Based Compensation Plan_2
Stock-Based Compensation Plans (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 USD ($) Type $ / shares shares | Dec. 31, 2021 USD ($) $ / shares shares | Dec. 31, 2020 USD ($) $ / shares shares | |
Restricted Stock and Performance Share Grants [Abstract] | |||
Number of types of restricted stock | Type | 2 | ||
Compensation expense, gross | $ | $ 8,178 | $ 9,479 | $ 8,101 |
Restricted Shares [Member] | Minimum [Member] | |||
Restricted Stock and Performance Share Grants [Abstract] | |||
Expiration of vesting period | 3 years | ||
Restricted Shares [Member] | Employees [Member] | |||
Restricted Stock and Performance Share Grants [Abstract] | |||
Estimated forfeitures | 5% | ||
Restricted Shares [Member] | Executives [Member] | |||
Restricted Stock and Performance Share Grants [Abstract] | |||
Estimated forfeitures | 0% | ||
Restricted Shares [Member] | Directors [Member] | |||
Restricted Stock and Performance Share Grants [Abstract] | |||
Estimated forfeitures | 0% | ||
Restricted Shares [Member] | Age 60 [Member] | Executives [Member] | |||
Restricted Stock and Performance Share Grants [Abstract] | |||
Vesting percentage | 25% | ||
Vesting period before reaching age limit | 2 months | ||
Restricted Shares [Member] | Age 63 [Member] | Executives [Member] | |||
Restricted Stock and Performance Share Grants [Abstract] | |||
Vesting percentage | 25% | ||
Vesting period before reaching age limit | 2 months | ||
Restricted Shares [Member] | Age 65 [Member] | Executives [Member] | |||
Restricted Stock and Performance Share Grants [Abstract] | |||
Vesting percentage | 100% | ||
Vesting period before reaching age limit | 2 months | ||
Performance-Based Shares [Member] | |||
Restricted Stock and Performance Share Grants [Abstract] | |||
Measuring period for performance-based shares | 3 years | ||
Performance-Based Shares [Member] | Minimum [Member] | |||
Restricted Stock and Performance Share Grants [Abstract] | |||
Expiration of vesting period | 3 years | ||
Restricted and Performance-Based Shares [Member] | |||
Restricted Stock and Performance Share Grants [Abstract] | |||
Compensation expense, gross | $ | $ 7,600 | 9,100 | 7,800 |
Compensation expense, net of tax | $ | 5,700 | 6,900 | $ 5,800 |
Unamortized compensation expense | $ | $ 14,900 | $ 16,600 | |
Restricted and performance-based stock, shares [Roll Forward] | |||
Beginning of period (in shares) | 807,019 | 839,686 | |
Granted (in shares) | 246,325 | 211,815 | |
Vested (in shares) | (190,082) | (227,682) | |
Performance Shares Target Adjustment (in shares) | 25,317 | ||
Forfeited (in shares) | (7,750) | (16,800) | |
End of period (in shares) | 880,829 | 807,019 | 839,686 |
Restricted and performance-based stock, weighted average grant date fair value per share [Roll Forward] | |||
Beginning of period (in dollars per share) | $ / shares | $ 34.92 | $ 34.77 | |
Granted (in dollars per share) | $ / shares | 28.44 | 38.51 | |
Vested (in dollars per share) | $ / shares | 41.71 | 36.1 | |
Performance Shares Target Adjustment (in dollars per share) | $ / shares | 42.21 | ||
Forfeited (in dollars per share) | $ / shares | 40.73 | 39.39 | |
End of period (in dollars per share) | $ / shares | $ 31.79 | $ 34.92 | $ 34.77 |
Weighted-average grant date fair value | $ | $ 28,000 | $ 28,200 | $ 29,200 |
Restricted and Performance-Based Shares [Member] | Employees [Member] | |||
Restricted Stock and Performance Share Grants [Abstract] | |||
Weighted average period of recognition for unrecognized compensation expense | 4 years 3 months 18 days | 4 years 8 months 12 days | |
Restricted and Performance-Based Shares [Member] | Directors [Member] | |||
Restricted Stock and Performance Share Grants [Abstract] | |||
Weighted average period of recognition for unrecognized compensation expense | 3 months 18 days | 4 months 24 days | |
Restricted and Performance-Based Shares [Member] | Executives and Directors [Member] | Minimum [Member] | |||
Restricted Stock and Performance Share 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 Stock and Performance Share 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] | Restricted Shares [Member] | |||
Restricted and performance-based stock, shares [Roll Forward] | |||
Granted (in shares) | 179,825 | ||
2016 Omnibus Incentive Plan [Member] | Performance-Based Shares [Member] | |||
Restricted and performance-based stock, shares [Roll Forward] | |||
Granted (in shares) | 66,500 | ||
2016 Omnibus Incentive Plan [Member] | Restricted and Performance-Based Shares [Member] | |||
Restricted Stock and Performance Share Grants [Abstract] | |||
Restricted and performance-based stock grants issued, net of forfeitures (in shares) | 1,385,337 | ||
Common stock available for future grants (in shares) | 664,663 | ||
2016 Omnibus Incentive Plan [Member] | Employees and Directors [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Abstract] | |||
Shares authorized for issuance (in shares) | 2,050,000 | ||
2016 Omnibus Incentive Plan [Member] | Nonemployee Directors [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Abstract] | |||
Shares authorized for issuance (in shares) | 350,000 |
Employee Benefits (Details)
Employee Benefits (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Mar. 31, 2022 USD ($) | Mar. 31, 2021 USD ($) | Dec. 31, 2022 USD ($) Employee shares | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Defined Contribution Plans [Abstract] | |||||
U.S defined contribution | $ 9,816 | $ 9,763 | $ 9,457 | ||
Employee Stock Ownership Plan (ESOP), Debt Structure [Abstract] | |||||
Provision for expense in connection with ESOP | $ 2,300 | 2,500 | 2,300 | ||
Postretirement Medical Benefits [Abstract] | |||||
Number of former union employees covered by the plan | Employee | 13 | ||||
Supplemental Executive Retirement Plan [Member] | |||||
Employee Stock Ownership Plan (ESOP), Debt Structure [Abstract] | |||||
Employer discretionary contribution amount | $ 800 | $ 500 | $ 800 | ||
Benefit obligation outstanding | 0 | 0 | |||
Net periodic benefit cost | $ 0 | $ 0 | $ 0 | ||
Employee Stock Ownership Plan and Trust (ESOP) [Member] | |||||
Employee Stock Ownership Plan (ESOP), Debt Structure [Abstract] | |||||
Additional shares contributed to ESOP (in shares) | shares | 48,200 | ||||
Shares released from trust (in shares) | shares | 48,200 | ||||
Total remaining balance of shares in the ESOP (in shares) | shares | 200 |
Other Non-Operating Income (E_3
Other Non-Operating Income (Expense), Net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Other Non-Operating Income (Expense), Net [Abstract] | |||
Interest and dividend income | $ 209 | $ 49 | $ 109 |
Equity income from joint ventures | 3,464 | 3,295 | 820 |
Gain (loss) on foreign exchange | 334 | (257) | (350) |
Other non-operating income, net | 807 | 407 | 233 |
Total other non-operating income, net | $ 4,814 | $ 3,494 | $ 812 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Jun. 30, 2022 | Dec. 31, 2021 | |
Notional Disclosures [Abstract] | |||
Derivative fair value | $ 3,091 | $ 0 | |
Interest Rate Swap Agreement [Member] | |||
Notional Disclosures [Abstract] | |||
Derivative term of contract | 7 years | ||
Borrowings under credit agreement | $ 100,000 | $ 100,000 | |
Fixed interest rate | 2.683% | ||
Derivative, credit spread adjustment percentage | 0.10% | ||
Interest Rate Swap Agreement [Member] | SOFR [Member] | |||
Notional Disclosures [Abstract] | |||
Term of variable rate | 1 month | ||
Margin on variable rate | 1.50% | ||
Interest Rate Swap [Member] | |||
Notional Disclosures [Abstract] | |||
Derivative term of contract | 7 years | ||
Derivative, notional amount | $ 100,000 | ||
Derivative contract, maturity date | May 31, 2029 | ||
Derivative fair value | $ 5,200 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 USD ($) Customer | Dec. 31, 2021 USD ($) | |
Fair Value, Net Asset (Liability) [Abstract] | ||
Number of independent third parties | Customer | 2 | |
Fair Value [Member] | LEVEL 1 [Member] | ||
Fair Value, Net Asset (Liability) [Abstract] | ||
Cash and cash equivalents | $ 21,150 | $ 21,755 |
Deferred compensation | 20,190 | 23,623 |
Short term borrowings | 55,031 | 128,415 |
Long-term debt | 184,589 | 21 |
Fair Value [Member] | LEVEL 2 [Member] | ||
Fair Value, Net Asset (Liability) [Abstract] | ||
Cash flow interest rate swap | 5,174 | 0 |
Carrying Amount [Member] | LEVEL 1 [Member] | ||
Fair Value, Net Asset (Liability) [Abstract] | ||
Cash and cash equivalents | 21,150 | 21,755 |
Deferred compensation | 20,190 | 23,623 |
Short term borrowings | 55,031 | 128,415 |
Long-term debt | 184,589 | 21 |
Carrying Amount [Member] | LEVEL 2 [Member] | ||
Fair Value, Net Asset (Liability) [Abstract] | ||
Cash flow interest rate swap | $ 5,174 | $ 0 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Current [Abstract] | |||
Domestic | $ 16,182 | $ 26,528 | $ 30,368 |
Foreign | 8,669 | 5,851 | 4,064 |
Total current | 24,851 | 32,379 | 34,432 |
Deferred [Abstract] | |||
Domestic | 1,102 | (1,161) | (7,418) |
Foreign | (747) | (174) | (52) |
Total deferred | 355 | (1,335) | (7,470) |
Provision for income taxes | 25,206 | 31,044 | 26,962 |
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 21% | 20,650 | 27,398 | 22,550 |
Increase (decrease) in tax rate resulting from [Abstract] | |||
State and local income taxes, net of federal income tax benefit | 3,118 | 4,579 | 3,781 |
Income tax (benefit) attributable to foreign income | (53) | (122) | 330 |
Other non-deductible items, net | 423 | (1,277) | (563) |
Change in valuation allowance | 1,068 | 466 | 864 |
Provision for income taxes | $ 25,206 | $ 31,044 | $ 26,962 |
U.S. Federal income tax rate | 21% | 21% | 21% |
Deferred tax assets [Abstract] | |||
Inventories | $ 11,604 | $ 12,181 | |
Allowance for customer returns | 14,506 | 14,185 | |
Postretirement benefits | 25 | 33 | |
Allowance for expected credit losses | 2,965 | 1,450 | |
Accrued salaries and benefits | 12,048 | 15,585 | |
Tax credit and NOL carryforwards | 5,103 | 5,702 | |
Accrued asbestos liabilities | 17,208 | 15,463 | |
Other | 190 | 190 | |
Deferred tax assets, gross | 63,649 | 64,789 | |
Valuation allowance | (3,155) | (2,087) | |
Total deferred tax assets | 60,494 | 62,702 | |
Deferred tax liabilities [Abstract] | |||
Intangible assets acquired, net of amortization | 13,292 | 13,450 | |
Depreciation | 8,715 | 7,589 | |
Interest rate swap agreement | 1,299 | 0 | |
Other | 3,530 | 5,537 | |
Total deferred tax liabilities | 26,836 | 26,576 | |
Net deferred tax assets | 33,658 | 36,126 | |
Valuation allowance, remaining amount | 3,200 | ||
Income Tax Contingency [Abstract] | |||
Recognized uncertain tax positions | $ 0 | $ 0 | $ 0 |
Foreign Tax Authority [Member] | |||
Operating Loss Carryforwards [Abstract] | |||
Operating Loss Carryforwards, Expiration Dates | Dec. 31, 2031 | ||
Tax credit carryforward | $ 3,000 | ||
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 | ||
State and Local [Member] | |||
Income Tax Contingency [Abstract] | |||
Open Tax Years | 2018 2019 2020 2021 | ||
Canada Tax Authority [Member] | |||
Income Tax Contingency [Abstract] | |||
Open Tax Years | 2018 2019 2020 2021 | ||
Hong Kong Tax Authority [Member] | |||
Income Tax Contingency [Abstract] | |||
Open Tax Years | 2017 2018 2019 2020 2021 | ||
State Administration of Taxation, China [Member] | |||
Income Tax Contingency [Abstract] | |||
Open Tax Years | 2020 2021 | ||
Mexican Tax Authority [Member] | |||
Income Tax Contingency [Abstract] | |||
Open Tax Years | 2018 2019 2020 2021 | ||
Poland Tax Authority [Member] | |||
Income Tax Contingency [Abstract] | |||
Open Tax Years | 2017 2018 2019 2020 2021 | ||
Hungary Tax Authority [Member] | |||
Income Tax Contingency [Abstract] | |||
Open Tax Years | 2016 2017 2018 2019 2020 2021 | ||
Germany Tax Authority [Member] | |||
Income Tax Contingency [Abstract] | |||
Open Tax Years | 2019 2020 2021 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Net Earnings Attributable to SMP [Abstract] | ||||
Earnings from continuing operations | $ 73,042 | $ 99,353 | $ 80,417 | |
Loss from discontinued operations | (17,691) | (8,467) | (23,024) | |
Net earnings attributable to SMP | [1] | $ 55,351 | $ 90,886 | $ 57,393 |
Basic Net Earnings Per Common Share Attributable to SMP [Abstract] | ||||
Earnings from continuing operations per common share (in dollars per share) | $ 3.37 | $ 4.49 | $ 3.59 | |
Loss from discontinued operations per common share (in dollars per share) | (0.82) | (0.39) | (1.02) | |
Net earnings per common share - Basic (in dollars per share) | $ 2.55 | $ 4.1 | $ 2.57 | |
Weighted average common shares outstanding (in shares) | 21,683,719 | 22,147,479 | 22,374,123 | |
Diluted Net Earnings Per Common Share Attributable to SMP [Abstract] | ||||
Earnings from continuing operations per common share (in dollars per share) | $ 3.3 | $ 4.39 | $ 3.52 | |
Loss from discontinued operations per common share (in dollars per share) | (0.8) | (0.37) | (1.01) | |
Net earnings per common share - Diluted (in dollars per share) | $ 2.5 | $ 4.02 | $ 2.51 | |
Weighted average common shares outstanding (in shares) | 21,683,719 | 22,147,479 | 22,374,123 | |
Plus incremental shares from assumed conversions [Abstract] | ||||
Dilutive effect of restricted stock and performance-based stock (in shares) | 456,000 | 469,000 | 452,000 | |
Weighted average common shares outstanding - Diluted (in shares) | 22,139,981 | 22,616,456 | 22,825,885 | |
Restricted and Performance-Based Shares [Member] | ||||
Earnings Per Share [Abstract] | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 292,000 | 269,000 | 268,000 | |
[1]Throughout this Form 10-K, “SMP” refers to Standard Motor Products, Inc. and subsidiaries. |
Industry Segment and Geograph_3
Industry Segment and Geographic Data, Reportable Segments (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 USD ($) Segment | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | ||
Financial information for reportable segment [Abstract] | ||||
Number of reportable operating segments | Segment | 2 | |||
Net sales | [1] | $ 1,371,815 | $ 1,298,816 | $ 1,128,588 |
Depreciation and amortization | 28,298 | 27,243 | 26,323 | |
Operating income (loss) | 104,135 | 128,999 | 108,895 | |
Investment in unconsolidated affiliates | 41,745 | 44,087 | 40,507 | |
Capital expenditures | 25,956 | 25,875 | 17,820 | |
Total assets | 1,254,929 | 1,197,961 | 956,540 | |
Intersegment Revenues [Member] | ||||
Financial information for reportable segment [Abstract] | ||||
Net sales | [1] | 0 | 0 | 0 |
Engine Management [Member] | Reportable Segments [Member] | ||||
Financial information for reportable segment [Abstract] | ||||
Net sales | [1] | 975,243 | 937,936 | 835,685 |
Depreciation and amortization | 23,289 | 21,881 | 20,417 | |
Operating income (loss) | 91,047 | 117,367 | 111,217 | |
Investment in unconsolidated affiliates | 2,490 | 2,729 | 2,428 | |
Capital expenditures | 19,306 | 21,922 | 13,496 | |
Total assets | 867,433 | 845,767 | 618,210 | |
Engine Management [Member] | Intersegment Revenues [Member] | ||||
Financial information for reportable segment [Abstract] | ||||
Net sales | [1] | 22,845 | 23,599 | 15,952 |
Temperature Control [Member] | Reportable Segments [Member] | ||||
Financial information for reportable segment [Abstract] | ||||
Net sales | [1] | 382,285 | 348,423 | 281,954 |
Depreciation and amortization | 3,266 | 3,626 | 4,035 | |
Operating income (loss) | 31,712 | 36,997 | 21,296 | |
Investment in unconsolidated affiliates | 39,255 | 41,358 | 38,079 | |
Capital expenditures | 4,502 | 2,586 | 1,988 | |
Total assets | 283,086 | 257,114 | 230,111 | |
Temperature Control [Member] | Intersegment Revenues [Member] | ||||
Financial information for reportable segment [Abstract] | ||||
Net sales | [1] | 9,728 | 9,024 | 6,162 |
Other [Member] | ||||
Financial information for reportable segment [Abstract] | ||||
Net sales | [1] | 14,287 | 12,457 | 10,949 |
Depreciation and amortization | 1,743 | 1,736 | 1,871 | |
Operating income (loss) | (18,624) | (25,365) | (23,618) | |
Investment in unconsolidated affiliates | 0 | 0 | 0 | |
Capital expenditures | 2,148 | 1,367 | 2,336 | |
Total assets | 104,410 | 95,080 | 108,219 | |
Other [Member] | Intersegment Revenues [Member] | ||||
Financial information for reportable segment [Abstract] | ||||
Net sales | [1] | $ (32,573) | $ (32,623) | $ (22,114) |
[1]Segment net sales include intersegment sales in our Engine Management and Temperature Control segments. |
Industry Segment and Geograph_4
Industry Segment and Geographic Data, Operating Income to Earnings (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Reconciliation of segment operating income to net earnings [Abstract] | ||||
Operating Income | $ 104,135 | $ 128,999 | $ 108,895 | |
Other non-operating income, net | 4,814 | 3,494 | 812 | |
Interest expense | 10,617 | 2,028 | 2,328 | |
Earnings from continuing operations before income taxes | 98,332 | 130,465 | 107,379 | |
Provision for income taxes | 25,206 | 31,044 | 26,962 | |
Earnings from continuing operations | 73,126 | 99,421 | 80,417 | |
Discontinued operations, net of tax | (17,691) | (8,467) | (23,024) | |
Net earnings | 55,435 | 90,954 | 57,393 | |
Long-lived assets [Abstract] | ||||
Long-lived assets | [1] | 458,832 | 450,630 | 313,234 |
United States [Member] | ||||
Long-lived assets [Abstract] | ||||
Long-lived assets | [1] | 326,199 | 315,983 | 241,053 |
Asia [Member] | ||||
Long-lived assets [Abstract] | ||||
Long-lived assets | [1] | 76,766 | 80,175 | 40,621 |
Europe [Member] | ||||
Long-lived assets [Abstract] | ||||
Long-lived assets | [1] | 38,351 | 37,892 | 16,504 |
Mexico [Member] | ||||
Long-lived assets [Abstract] | ||||
Long-lived assets | [1] | 10,355 | 12,119 | 10,586 |
Canada [Member] | ||||
Long-lived assets [Abstract] | ||||
Long-lived assets | [1] | $ 7,161 | $ 4,461 | $ 4,470 |
[1]Long-lived assets are attributed to countries based upon the location of the assets. |
Industry Segment and Geograph_5
Industry Segment and Geographic Data, Customer Concentration (Details) - Customer Concentration Risk [Member] | 12 Months Ended |
Dec. 31, 2022 Customer | |
Customer Concentration [Abstract] | |
Number of largest individual customers | 3 |
Net Sales [Member] | Three Largest Individual Customers [Member] | |
Customer Concentration [Abstract] | |
Concentration risk, percentage | 59% |
Net Sales [Member] | O' Reilly [Member] | |
Customer Concentration [Abstract] | |
Concentration risk, percentage | 27% |
Net Sales [Member] | AutoZone [Member] | |
Customer Concentration [Abstract] | |
Concentration risk, percentage | 17% |
Net Sales [Member] | NAPA [Member] | |
Customer Concentration [Abstract] | |
Concentration risk, percentage | 15% |
Net Sales (Details)
Net Sales (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Disaggregation of Revenue [Abstract] | ||||
Disaggregation of net sales | [1] | $ 1,371,815 | $ 1,298,816 | $ 1,128,588 |
Aftermarket [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Disaggregation of net sales | [1] | 1,067,117 | 1,032,734 | 949,383 |
OE/OES [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Disaggregation of net sales | [1] | 270,007 | 237,305 | 159,168 |
Export [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Disaggregation of net sales | [1] | 34,691 | 28,777 | 20,037 |
Ignition, Emission Control, Fuel and Safety Related System Products [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Disaggregation of net sales | [1] | 835,452 | 795,470 | 699,894 |
Wire and Cable [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Disaggregation of net sales | [1] | 150,343 | 151,147 | 144,122 |
Compressors [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Disaggregation of net sales | [1] | 224,345 | 208,131 | 163,883 |
Other Climate Control Parts [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Disaggregation of net sales | [1] | 161,675 | 144,068 | 120,689 |
United States [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Disaggregation of net sales | [1] | 1,209,104 | 1,134,378 | 1,007,201 |
Canada [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Disaggregation of net sales | [1] | 66,591 | 62,560 | 48,470 |
Europe [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Disaggregation of net sales | [1] | 38,520 | 27,683 | 12,606 |
Mexico [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Disaggregation of net sales | [1] | 31,317 | 25,646 | 19,607 |
Asia [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Disaggregation of net sales | [1] | 19,186 | 41,016 | 35,244 |
Other Foreign [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Disaggregation of net sales | [1] | 7,097 | 7,533 | 5,460 |
Engine Management [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Disaggregation of net sales | [1] | 975,243 | 937,936 | 835,685 |
Engine Management [Member] | Aftermarket [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Disaggregation of net sales | [1] | 709,128 | 702,473 | 674,744 |
Engine Management [Member] | OE/OES [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Disaggregation of net sales | [1] | 234,092 | 208,760 | 142,072 |
Engine Management [Member] | Export [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Disaggregation of net sales | [1] | 32,023 | 26,703 | 18,869 |
Engine Management [Member] | Ignition, Emission Control, Fuel and Safety Related System Products [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Disaggregation of net sales | [1] | 824,677 | 786,514 | 691,722 |
Engine Management [Member] | Wire and Cable [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Disaggregation of net sales | [1] | 150,566 | 151,422 | 143,963 |
Engine Management [Member] | Compressors [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Disaggregation of net sales | [1] | 0 | 0 | 0 |
Engine Management [Member] | Other Climate Control Parts [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Disaggregation of net sales | [1] | 0 | 0 | 0 |
Engine Management [Member] | United States [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Disaggregation of net sales | [1] | 849,858 | 804,398 | 738,521 |
Engine Management [Member] | Canada [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Disaggregation of net sales | [1] | 32,410 | 33,590 | 25,842 |
Engine Management [Member] | Europe [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Disaggregation of net sales | [1] | 37,098 | 27,293 | 12,255 |
Engine Management [Member] | Mexico [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Disaggregation of net sales | [1] | 30,917 | 25,288 | 19,336 |
Engine Management [Member] | Asia [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Disaggregation of net sales | [1] | 18,830 | 40,668 | 35,079 |
Engine Management [Member] | Other Foreign [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Disaggregation of net sales | [1] | 6,130 | 6,699 | 4,652 |
Temperature Control [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Disaggregation of net sales | [1] | 382,285 | 348,423 | 281,954 |
Temperature Control [Member] | Aftermarket [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Disaggregation of net sales | [1] | 343,702 | 317,804 | 263,690 |
Temperature Control [Member] | OE/OES [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Disaggregation of net sales | [1] | 35,915 | 28,545 | 17,096 |
Temperature Control [Member] | Export [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Disaggregation of net sales | [1] | 2,668 | 2,074 | 1,168 |
Temperature Control [Member] | Ignition, Emission Control, Fuel and Safety Related System Products [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Disaggregation of net sales | [1] | 0 | 0 | 0 |
Temperature Control [Member] | Wire and Cable [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Disaggregation of net sales | [1] | 0 | 0 | 0 |
Temperature Control [Member] | Compressors [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Disaggregation of net sales | [1] | 222,532 | 206,697 | 163,071 |
Temperature Control [Member] | Other Climate Control Parts [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Disaggregation of net sales | [1] | 159,753 | 141,726 | 118,883 |
Temperature Control [Member] | United States [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Disaggregation of net sales | [1] | 359,246 | 329,980 | 268,680 |
Temperature Control [Member] | Canada [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Disaggregation of net sales | [1] | 19,894 | 16,513 | 11,679 |
Temperature Control [Member] | Europe [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Disaggregation of net sales | [1] | 1,422 | 390 | 351 |
Temperature Control [Member] | Mexico [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Disaggregation of net sales | [1] | 400 | 358 | 271 |
Temperature Control [Member] | Asia [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Disaggregation of net sales | [1] | 356 | 348 | 165 |
Temperature Control [Member] | Other Foreign [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Disaggregation of net sales | [1] | 967 | 834 | 808 |
Other [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Disaggregation of net sales | [1],[2] | 14,287 | 12,457 | 10,949 |
Other [Member] | Aftermarket [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Disaggregation of net sales | [1],[2] | 14,287 | 12,457 | 10,949 |
Other [Member] | OE/OES [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Disaggregation of net sales | [1],[2] | 0 | 0 | 0 |
Other [Member] | Export [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Disaggregation of net sales | [1],[2] | 0 | 0 | 0 |
Other [Member] | Ignition, Emission Control, Fuel and Safety Related System Products [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Disaggregation of net sales | [1],[2] | 10,775 | 8,956 | 8,172 |
Other [Member] | Wire and Cable [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Disaggregation of net sales | [1],[2] | (223) | (275) | 159 |
Other [Member] | Compressors [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Disaggregation of net sales | [1],[2] | 1,813 | 1,434 | 812 |
Other [Member] | Other Climate Control Parts [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Disaggregation of net sales | [1],[2] | 1,922 | 2,342 | 1,806 |
Other [Member] | United States [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Disaggregation of net sales | [1],[2] | 0 | 0 | 0 |
Other [Member] | Canada [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Disaggregation of net sales | [1],[2] | 14,287 | 12,457 | 10,949 |
Other [Member] | Europe [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Disaggregation of net sales | [1],[2] | 0 | 0 | 0 |
Other [Member] | Mexico [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Disaggregation of net sales | [1],[2] | 0 | 0 | 0 |
Other [Member] | Asia [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Disaggregation of net sales | [1],[2] | 0 | 0 | 0 |
Other [Member] | Other Foreign [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Disaggregation of net sales | [1],[2] | $ 0 | $ 0 | $ 0 |
[1]Segment net sales include intersegment sales in our Engine Management and Temperature Control segments.[2]Other consists of the elimination of intersegment sales from our Engine Management and Temperature Control segments as well as sales from our Canadian business unit that does not meet the criteria of a reportable operating segment. Intersegment wire and cable sales for the years ended December 31, 2022 and 2021 exceeded third party sales from our Canadian business unit. |
Commitments and Contingencies,
Commitments and Contingencies, Rent (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |||
Rent [Abstract] | |||||
Total rent expense | $ 14,135 | [1] | $ 12,065 | [1] | $ 11,669 |
Expenses related to non lease components | 2,700 | 2,000 | |||
Real Estate [Member] | |||||
Rent [Abstract] | |||||
Total rent expense | 11,385 | [1] | 9,500 | [1] | 8,290 |
Other [Member] | |||||
Rent [Abstract] | |||||
Total rent expense | $ 2,750 | [1] | $ 2,565 | [1] | $ 3,379 |
[1]Includes expenses of approximately $2.7 million and $2 million for the years ended December 31, 2022 and 2021, respectively, related to non-lease components such as maintenance, property taxes, etc., and operating lease expense for leases with an initial term of 12 months or less, which is not material. |
Commitments and Contingencies_2
Commitments and Contingencies, Warranties (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Warranties [Abstract] | |||
Warranty expense | $ 112,500 | $ 91,900 | $ 87,100 |
Changes in product warranties [Roll forward] | |||
Balance, beginning of period | 17,463 | 17,663 | |
Liabilities accrued for current year sales | 112,477 | 91,908 | |
Settlements of warranty claims | (110,273) | (92,108) | |
Balance, end of period | $ 19,667 | $ 17,463 | $ 17,663 |
Commitments and Contingencies_3
Commitments and Contingencies, Letters of Credit and Asbestos (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | 256 Months Ended | ||||
Sep. 30, 2022 USD ($) | Aug. 31, 2021 USD ($) | Dec. 31, 2022 USD ($) Officer Claim | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Dec. 31, 2022 USD ($) Claim | Aug. 31, 2022 USD ($) | |
Letters of Credit and Asbestos [Abstract] | |||||||
Number of key officers | Officer | 1 | ||||||
Accrued asbestos liabilities | $ 63,305 | $ 52,698 | $ 63,305 | ||||
Financial Standby Letter of Credit [Member] | |||||||
Letters of Credit and Asbestos [Abstract] | |||||||
Outstanding letters of credit with certain vendors | $ 2,400 | $ 2,400 | |||||
Asbestos [Member] | |||||||
Letters of Credit and Asbestos [Abstract] | |||||||
Pending claims, approximate number | Claim | 1,530 | 1,530 | |||||
Payment for settled claims and awards related damages, including interest | $ 64,600 | ||||||
Increase in range of possible loss from lower range | $ 7,900 | ||||||
Increase in range of possible loss from upper range | $ 11,400 | ||||||
Accrued asbestos liabilities | $ 68,800 | ||||||
Incremental pre-tax provision | $ 18,500 | ||||||
Asbestos [Member] | Minimum [Member] | |||||||
Letters of Credit and Asbestos [Abstract] | |||||||
Range of possible loss | $ 68,800 | ||||||
Asbestos [Member] | Maximum [Member] | |||||||
Letters of Credit and Asbestos [Abstract] | |||||||
Range of possible loss | 111,600 | ||||||
Asbestos [Member] | Discontinued Operations [Member] | |||||||
Letters of Credit and Asbestos [Abstract] | |||||||
Total operating cash outflows related to discontinued operations | $ 12,000 | $ 8,800 | $ 16,400 | ||||
Asbestos [Member] | Discontinued Operations [Member] | Minimum [Member] | |||||||
Letters of Credit and Asbestos [Abstract] | |||||||
Range of possible loss | 53,200 | ||||||
Asbestos [Member] | Discontinued Operations [Member] | Maximum [Member] | |||||||
Letters of Credit and Asbestos [Abstract] | |||||||
Range of possible loss | $ 105,700 |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts (Details) | 12 Months Ended | |||
Dec. 31, 2022 USD ($) Customer | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | ||
Valuation and Qualifying Accounts [Roll Forward] | ||||
Balance at beginning of year | $ 6,170,000 | $ 5,822,000 | $ 5,212,000 | |
Charged to costs and expenses | 19,698,000 | 14,277,000 | 11,880,000 | |
Other | 0 | 0 | 0 | |
Deductions | 20,493,000 | 13,929,000 | 11,270,000 | |
Balance at end of year | $ 5,375,000 | 6,170,000 | 5,822,000 | |
Bankruptcy [Abstract] | ||||
Number of customers who filed a petition | Customer | 1 | |||
Customer bankruptcy charge | $ 7,002,000 | 0 | 0 | |
Allowance for Expected Credit Losses [Member] | ||||
Valuation and Qualifying Accounts [Roll Forward] | ||||
Balance at beginning of year | 4,815,000 | 4,406,000 | 4,244,000 | |
Charged to costs and expenses | 6,242,000 | [1] | 450,000 | 392,000 |
Other | 0 | 0 | 0 | |
Deductions | 6,928,000 | 41,000 | 230,000 | |
Balance at end of year | 4,129,000 | 4,815,000 | 4,406,000 | |
Allowance for Discounts [Member] | ||||
Valuation and Qualifying Accounts [Roll Forward] | ||||
Balance at beginning of year | 1,355,000 | 1,416,000 | 968,000 | |
Charged to costs and expenses | 13,456,000 | 13,827,000 | 11,488,000 | |
Other | 0 | 0 | 0 | |
Deductions | 13,565,000 | 13,888,000 | 11,040,000 | |
Balance at end of year | 1,246,000 | 1,355,000 | 1,416,000 | |
Allowance for Sales Returns [Member] | ||||
Valuation and Qualifying Accounts [Roll Forward] | ||||
Balance at beginning of year | 42,412,000 | 40,982,000 | 35,240,000 | |
Charged to costs and expenses | 152,985,000 | 129,964,000 | 135,448,000 | |
Other | 0 | 0 | 0 | |
Deductions | 158,228,000 | 128,534,000 | 129,706,000 | |
Balance at end of year | $ 37,169,000 | $ 42,412,000 | $ 40,982,000 | |
[1] Includes a $7 million charge relating to one of our customers that filed a petition for bankruptcy in January 2023. |