Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2018 | Jul. 31, 2018 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2018 | |
Entity Registrant Name | STURM RUGER & CO INC | |
Entity Central Index Key | 95,029 | |
Trading Symbol | RGR | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 17,458,020 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Current Assets | ||
Cash | $ 131,711 | $ 63,487 |
Trade receivables, net | 50,138 | 60,082 |
Gross inventories | 71,104 | 87,592 |
Less LIFO reserve | (45,097) | (45,180) |
Less excess and obsolescence reserve | (1,994) | (2,698) |
Net inventories | 24,013 | 39,714 |
Prepaid expenses and other current assets | 2,597 | 3,501 |
Total Current Assets | 208,459 | 166,784 |
Property, plant and equipment | 360,554 | 365,013 |
Less allowances for depreciation | (270,576) | (261,218) |
Net property, plant and equipment | 89,978 | 103,795 |
Other assets | 14,321 | 13,739 |
Total Assets | 312,758 | 284,318 |
Current Liabilities | ||
Trade accounts payable and accrued expenses | 28,900 | 32,422 |
Contract liability to customers (Note 3) | 6,674 | |
Product liability | 813 | 729 |
Employee compensation and benefits | 19,755 | 14,315 |
Workers' compensation | 4,997 | 5,211 |
Income taxes payable | 1,221 | |
Total Current Liabilities | 62,360 | 52,677 |
Product liability | 78 | 90 |
Deferred income taxes | 889 | 1,402 |
Contingent liabilities - Note 12 | ||
Stockholders' Equity | ||
Common Stock | 24,123 | 24,092 |
Additional paid-in capital | 30,150 | 28,329 |
Retained earnings | 338,753 | 321,323 |
Less: Treasury stock - at cost 2018 - 6,665,398 shares 2017 - 6,665,398 shares | (143,595) | (143,595) |
Total Stockholders' Equity | 249,431 | 230,149 |
Total Liabilities and Stockholders' Equity | 312,758 | 284,318 |
Nonvoting Common Stock [Member] | ||
Stockholders' Equity | ||
Common Stock | ||
Common Stock [Member] | ||
Stockholders' Equity | ||
Common Stock | $ 24,123 | $ 24,092 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 30, 2018 | Dec. 31, 2017 |
Treasury stock, shares | 6,665,398 | 6,665,398 |
Nonvoting Common Stock [Member] | ||
Common Stock, par value per share | $ 1 | $ 1 |
Common Stock, shares authorized | 50,000 | 50,000 |
Common Stock [Member] | ||
Common Stock, par value per share | $ 1 | $ 1 |
Common Stock, shares authorized | 40,000,000 | 40,000,000 |
Common Stock, shares issued | 24,123,418 | 24,092,488 |
Common Stock, shares outstanding | 17,458,020 | 17,427,090 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jul. 01, 2017 | Jun. 30, 2018 | Jul. 01, 2017 | |
Segment Reporting Information [Line Items] | ||||
Total net sales | $ 128,411 | $ 131,854 | $ 259,569 | $ 299,210 |
Cost of products sold | 91,812 | 96,908 | 187,150 | 208,511 |
Gross profit | 36,599 | 34,946 | 72,419 | 90,699 |
Operating expenses: | ||||
Selling | 9,785 | 12,505 | 18,123 | 26,044 |
General and administrative | 7,446 | 7,145 | 16,332 | 15,488 |
Total operating expenses | 17,231 | 19,650 | 34,455 | 41,532 |
Operating income | 19,368 | 15,296 | 37,964 | 49,167 |
Other income: | ||||
Interest expense, net | (22) | (32) | (49) | (66) |
Other income, net | 703 | 426 | 1,035 | 780 |
Total other income, net | 681 | 394 | 986 | 714 |
Income before income taxes | 20,049 | 15,690 | 38,950 | 49,881 |
Income taxes | 4,860 | 5,491 | 9,497 | 17,458 |
Net income and comprehensive income | $ 15,189 | $ 10,199 | $ 29,453 | $ 32,423 |
Basic earnings per share | $ 0.87 | $ 0.58 | $ 1.69 | $ 1.81 |
Diluted earnings per share | 0.86 | 0.57 | 1.68 | 1.79 |
Cash dividends per share | $ 0.32 | $ 0.48 | $ 0.55 | $ 0.92 |
Firearms [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total net sales | $ 127,017 | $ 130,510 | $ 256,899 | $ 296,876 |
Other income: | ||||
Income before income taxes | 20,367 | 15,466 | 39,497 | 49,497 |
Unaffiliated Castings [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total net sales | 1,394 | 1,344 | 2,670 | 2,334 |
Other income: | ||||
Income before income taxes | $ (455) | $ 54 | $ (943) | $ 155 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (UNAUDITED) - 6 months ended Jun. 30, 2018 - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Treasury Stock [Member] | Total |
Balance at Dec. 31, 2017 | $ 24,092 | $ 28,329 | $ 321,323 | $ (143,595) | $ 230,149 |
Net income and comprehensive income | 29,453 | 29,453 | |||
Dividends paid | (9,599) | (9,599) | |||
Unpaid dividends accrued | (197) | (197) | |||
Adoption of New Accounting Standard | (2,227) | (2,227) | |||
Recognition of stock-based compensation expense | 2,668 | 2,668 | |||
Vesting of RSU's | (816) | (816) | |||
Common stock issued - compensation plans | 31 | (31) | |||
Balance at Jun. 30, 2018 | $ 24,123 | $ 30,150 | $ 338,753 | $ (143,595) | $ 249,431 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Jul. 01, 2017 | |
Operating Activities | ||
Net income | $ 29,453 | $ 32,423 |
Adjustments to reconcile net income to cash provided by operating activities: | ||
Depreciation and amortization | 16,344 | 18,653 |
Slow moving inventory valuation adjustment | (348) | 321 |
Stock-based compensation | 2,668 | 1,643 |
(Gain) loss on sale of assets | (4) | 31 |
Deferred income taxes | (513) | 428 |
Changes in operating assets and liabilities: | ||
Trade receivables | 9,944 | 13,880 |
Inventories | 16,049 | 1,973 |
Trade accounts payable and accrued expenses | (3,736) | (14,158) |
Contract liability to customers | 4,447 | |
Employee compensation and benefits | 5,242 | (10,612) |
Product liability | 73 | (305) |
Prepaid expenses, other assets and other liabilities | 155 | (4,704) |
Income taxes payable | 1,221 | 333 |
Cash provided by operating activities | 80,995 | 39,906 |
Investing Activities | ||
Property, plant and equipment additions | (2,360) | (10,875) |
Proceeds from sale of assets | 4 | 3 |
Cash used for investing activities | (2,356) | (10,872) |
Financing Activities | ||
Remittance of taxes withheld from employees related to share-based compensation | (816) | (2,482) |
Repurchase of common stock | (53,469) | |
Dividends paid | (9,599) | (16,255) |
Cash used for financing activities | (10,415) | (72,206) |
Increase (decrease) in cash and cash equivalents | 68,224 | (43,172) |
Cash and cash equivalents at beginning of period | 63,487 | 87,126 |
Cash and cash equivalents at end of period | $ 131,711 | $ 43,954 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 6 Months Ended |
Jun. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | NOTE 1 - BASIS OF PRESENTATION The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and disclosures required by accounting principles generally accepted in the United States of America for complete financial statements. In the opinion of management, the accompanying unaudited condensed consolidated financial statements include all adjustments, consisting of normal recurring accruals, considered necessary for a fair presentation of the results of the interim periods. Operating results for the six months ended June 30, 2018 may not be indicative of the results to be expected for the full year ending December 31, 2018. These financial statements have been prepared on a basis that is substantially consistent with the accounting principles applied in our Annual Report on Form 10-K for the year ended December 31, 2017. |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES Organization: Sturm, Ruger & Company, Inc. (the “Company”) is principally engaged in the design, manufacture, and sale of firearms to domestic customers. Approximately 99% of sales are from firearms. Export sales represent approximately 4% of total sales. The Company’s design and manufacturing operations are located in the United States and almost all product content is domestic. The Company’s firearms are sold through a select number of independent wholesale distributors, principally to the commercial sporting market. The Company also manufactures investment castings made from steel alloys and metal injection molding (“MIM”) parts for internal use in its firearms and for sale to unaffiliated, third-party customers. Approximately 1% of sales are from the castings segment. Principles of Consolidation: The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary. All significant intercompany accounts and transactions have been eliminated. Revenue Recognition: The Company recognizes revenue in accordance with the provisions of Accounting Standards Codification Topic 606, Revenue from Contracts with Customers , Fair Value of Financial Instruments: The carrying amounts of financial instruments, including cash, accounts receivable, accounts payable and accrued liabilities, approximate fair value due to the short-term maturity of these items. Use of Estimates: The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Reclassifications: Certain prior period balances have been reclassified to conform to current year presentation. Recent Accounting Pronouncements: In May 2014, the FASB issued Accounting Standards Update (“ASU”) 2014-09, an update to Accounting Standards Codification Topic 606, Revenue from Contracts with Customers On March 30, 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation (Topic 718) On February 25, 2016, the FASB issued ASU 2016-02, Leases (Topic 842) |
REVENUE RECOGNITION AND CONTRAC
REVENUE RECOGNITION AND CONTRACTS WITH CUSTOMERS | 6 Months Ended |
Jun. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE RECOGNITION AND CONTRACTS WITH CUSTOMERS | NOTE 3 – REVENUE RECOGNITION AND CONTRACTS WITH CUSTOMERS On January 1, 2018, the Company adopted ASC 606 using the modified retrospective method, applied to those contracts for which all performance obligations were not completed as of that date. Under the modified retrospective method results for reporting periods beginning after January 1, 2018 will be presented using the guidance of ASC 606, while prior period amounts are not adjusted and continue to be reported in accordance with the previous guidance provided in ASC Topic 605, Revenue Recognition The effects of adjustments to the December 31, 2017 consolidated balance sheet for the adoption of ASC 606 were as follows: Balance at ASC 606 Opening Balance Trade accounts payable and accrued expenses 32,422 (4,000 ) 28,422 Deferred revenue from contracts with customers — 6,950 6,950 Deferred taxes 1,402 (723 ) 679 Retained earnings 321,323 (2,227 ) 319,096 At December 31, 2017, the Company had accrued $4.0 million related to certain of its sales promotion activities that included the shipment of no charge firearms. Using the new accounting guidance, a deferred contract liability of $6.9 million was required at December 31, 2017 and an entry for $2.9 million to increase the deferred contract liability, increase deferred tax assets by $0.7 million, and reduce beginning retained earnings by $2.2 million was recorded on January 1, 2018 (the “transition entry”). The impact of the adoption of ASC 606 on revenue recognized during the three and six months ended June 30, 2018 is as follows: Three Months Ended Six Months Ended Contract liabilities with customers beginning of period $ 9,308 $ 6,950 Revenue recognized (4,895 ) (9,717 ) Revenue deferred 2,261 9,441 Contract liabilities with customers at June 30, 2018 $ 6,674 $ 6,674 During the six months ended June 30, 2018, the Company deferred $9.4 million of revenue, offset by the recognition of $9.7 million of revenue previously deferred as the performance obligation relating to the shipment of free products was satisfied. This resulted in a net increase in firearms sales for the three and six months ended June 30, 2018 of $2.6 million, and $0.3 million, respectively, and a deferred contract revenue liability at June 30, 2018 of $6.7 million. The Company estimates that revenue from this deferred contract liability will be recognized in the third quarter of 2018. As a result of the adoption of ASC 606, for the three months ended June 30, 2018 the gross margin percentage was unchanged and earnings per share increased by approximately 5¢ over the comparable prior year period. As a result of the adoption of ASC 606, for the six months ended June 30, 2018 the gross margin percentage was reduced by 2% and earnings per share was unchanged as compared to the comparable prior year period. Practical Expedients and Exemptions The Company has elected to account for shipping and handling activities that occur after control of the related product transfers to the customer as fulfillment activities that are recognized upon shipment of the goods. |
INVENTORIES
INVENTORIES | 6 Months Ended |
Jun. 30, 2018 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | NOTE 4 - INVENTORIES Inventories are valued using the last-in, first-out (LIFO) method. An actual valuation of inventory under the LIFO method can be made only at the end of each year based on the inventory levels and costs existing at that time. Accordingly, interim LIFO calculations must necessarily be based on management's estimates of expected year-end inventory levels and costs. Because these are subject to many factors beyond management's control, interim results are subject to the final year-end LIFO inventory valuation. During the six month period ended June 30, 2018, inventory quantities were reduced. If this reduction remains through year-end, it will result in a liquidation of LIFO inventory quantities carried at lower costs prevailing in prior years as compared with the current cost of purchases. Although the effect of such a liquidation cannot be precisely quantified at the present time, management believes that if a LIFO liquidation occurs in 2018, the impact may be material to the Company’s results of operations for the period but will not have a material impact on the financial position of the Company. Inventories consist of the following: June 30, 2018 December 31, 2017 Inventory at FIFO Finished products $ 11,415 $ 22,558 Materials and work in process 59,689 65,034 Gross inventories 71,104 87,592 Less: LIFO reserve (45,097 ) (45,180 ) Less: excess and obsolescence reserve (1,994 ) (2,698 ) Net inventories $ 24,013 $ 39,714 |
LINE OF CREDIT
LINE OF CREDIT | 6 Months Ended |
Jun. 30, 2018 | |
Line of Credit Facility [Abstract] | |
LINE OF CREDIT | NOTE 5 - LINE OF CREDIT The Company’s $40 million revolving line of credit expired on June 15, 2018. Throughout 2018, the Company was in compliance with the terms and covenants of the credit facility, which was not used. |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 6 Months Ended |
Jun. 30, 2018 | |
Retirement Benefits [Abstract] | |
EMPLOYEE BENEFIT PLANS | NOTE 6 - EMPLOYEE BENEFIT PLANS The Company sponsors a 401(k) plan that covers substantially all employees. The Company matches a certain portion of employee contributions using the safe harbor guidelines contained in the Internal Revenue Code. Expenses related to these matching contributions totaled $0.8 million and $1.6 million for the three and six months ended June 30, 2018, respectively, and $0.8 million and $1.8 million for the three and six months ended July 1, 2017, respectively. The Company plans to contribute approximately $1.6 million to the plan in matching employee contributions during the remainder of 2018. In addition, the Company provided supplemental discretionary contributions to the 401(k) plan totaling $1.3 million and $2.6 million for the three and six months ended June 30, 2018, respectively, and $1.3 million and $3.2 million for the three and six month ended July 1, 2017, respectively. The Company plans to contribute approximately $1.3 million in supplemental contributions to the plan during the remainder of 2018. |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | NOTE 7 - INCOME TAXES The Company's 2018 and 2017 effective tax rates differ from the statutory federal tax rate due principally to state income taxes. The Company’s effective income tax rate was 24.2% and 24.4% for the three and six months ended June 30, 2018, respectively. The Company’s effective income tax rate for the three and six months ended July 1, 2017 was 35.0%. This reduction is primarily the result of the Tax Cuts and Job Act of 2017, which reduced the statutory Federal tax rate from 35% to 21% effective January 1, 2018, partially offset by the loss of tax benefits available in the prior period related to the American Jobs Creation Act of 2004 that expired effective December 31, 2017. The reduced effective tax rate resulting from the Tax Cuts and Job Act of 2017 increased earnings per share by 12¢ and 24¢ for the three and six months ended June 30, 2018. Income tax payments for the three and six months ended June 30, 2018 totaled $8.0 million and $8.0 million, respectively. Income tax payments for the three and six months ended July 1, 2017 totaled $16.2 million and $16.3 million, respectively. The Company files income tax returns in the U.S. federal jurisdiction and various state jurisdictions. With few exceptions, the Company is no longer subject to U.S. federal and state income tax examinations by tax authorities for years before 2015. The Company does not believe it has included any “uncertain tax positions” in its federal income tax return or any of the state income tax returns it is currently filing. The Company has made an evaluation of the potential impact of additional state taxes being assessed by jurisdictions in which the Company does not currently consider itself liable. The Company does not anticipate that such additional taxes, if any, would result in a material change to its financial position. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | NOTE 8 - EARNINGS PER SHARE Set forth below is a reconciliation of the numerator and denominator for basic and diluted earnings per share calculations for the periods indicated: Three Months Ended Six Months Ended June 30, 2018 July 1, 2017 June 30, 2018 July 1, 2017 Numerator: Net income $ 15,189 $ 10,199 $ 29,453 $ 32,423 Denominator: Weighted average number of common shares outstanding – Basic 17,453,404 17,668,514 17,443,174 17,944,035 Dilutive effect of options and restricted stock units outstanding under the Company’s employee compensation plans 197,155 232,214 140,909 195,326 Weighted average number of common shares outstanding – Diluted 17,650,559 17,900,728 17,584,083 18,139,361 The dilutive effect of outstanding options and restricted stock units is calculated using the treasury stock method. There were no stock options that were anti-dilutive and therefore not included in the diluted earnings per share calculation. |
COMPENSATION PLANS
COMPENSATION PLANS | 6 Months Ended |
Jun. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
COMPENSATION PLANS | NOTE 9 - COMPENSATION PLANS In May 2017, the Company’s shareholders approved the 2017 Stock Incentive Plan (the “2017 SIP”) under which employees, independent contractors, and non-employee directors may be granted stock options, restricted stock, deferred stock awards, and stock appreciation rights, any of which may or may not require the satisfaction of performance objectives. Vesting requirements are determined by the Compensation Committee of the Board of Directors . In April 2007, the Company adopted and the shareholders approved the 2007 Stock Incentive Plan (the “2007 SIP”), which had similar provisions as the 2017 SIP. The 2007 SIP plan expired April 24, 2017. The Company had reserved 2,550,000 shares for issuance under the 2007 SIP, of which 2,181,000 shares were issued. Restricted Stock Units Beginning in 2009, the Company began granting performance-based and retention-based restricted stock units to senior employees in lieu of incentive stock options. The vesting of the performance-based awards is dependent on the achievement of corporate objectives established by the Compensation Committee of the Board of Directors and a three-year vesting period. The retention-based awards are subject only to the three-year vesting period. There were 184,200 restricted stock units issued during the six months ended June 30, 2018. Total compensation costs related to these restricted stock units are $8.8 million. Compensation costs related to all outstanding restricted stock units recognized in the statements of income aggregated $1.5 million and $2.7 million for the three and six months ended June 30, 2018, respectively, and $0.9 million and $1.6 million for the three and six months ended July 1, 2017, respectively. Stock Options A summary of changes in options outstanding under the 2007 SIP is summarized below: Shares Weighted Grant Date Outstanding at December 31, 2017 11,838 $ 8.95 $ 6.69 Granted — — — Exercised (4,616 ) 8.28 6.90 Expired — — — Outstanding at June 30, 2018 7,222 $ 9.38 $ 6.56 The aggregate intrinsic value (mean market price at June 30, 2018 less the weighted average exercise price) of options outstanding under the 2007 SIP was approximately $0.3 million. |
OPERATING SEGMENT INFORMATION
OPERATING SEGMENT INFORMATION | 6 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
OPERATING SEGMENT INFORMATION | NOTE 10 - OPERATING SEGMENT INFORMATION The Company has two reportable segments: firearms and castings. The firearms segment manufactures and sells rifles, pistols, and revolvers principally to a select number of independent wholesale distributors primarily located in the United States. The castings segment manufactures and sells steel investment castings and metal injection molding parts. Selected operating segment financial information follows: (in thousands) Three Months Ended Six Months Ended June 30, July 1, June 30, July 1, Net Sales Firearms $ 127,017 $ 130,510 $ 256,899 $ 296,876 Castings Unaffiliated 1,394 1,344 2,670 2,334 Intersegment 5,771 6,281 11,179 15,121 7,165 7,625 13,849 17,455 Eliminations (5,771 ) (6,281 ) (11,179 ) (15,121 ) $ 128,411 $ 131,854 $ 259,569 $ 299,210 Income (Loss) Before Income Taxes Firearms $ 20,367 $ 15,466 $ 39,497 $ 49,497 Castings (455 ) 54 (943 ) 155 Corporate 137 170 396 229 $ 20,049 $ 15,690 $ 38,950 $ 49,881 June 30, December 31, Identifiable Assets Firearms $ 170,607 $ 206,091 Castings 10,409 12,524 Corporate 131,742 65,703 $ 312,758 $ 284,318 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 6 Months Ended |
Jun. 30, 2018 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | NOTE 11 – RELATED PARTY TRANSACTIONS The Company contracts with the National Rifle Association (“NRA”) for some of its promotional and advertising activities, including the 2016 “Ruger $5 Million Match Campaign” and the 2015-16 “2.5 Million Gun Challenge”. Payments made to the NRA in the three and six months ended June 30, 2018 totaled $132,000 and $211,000, respectively. Payments made to the NRA in the three and six months ended July 1, 2017 were $127,000 and $302,000, respectively. One of the Company’s Directors also serves as a Director on the Board of the NRA. The Company has contracted with Symbolic, Inc. (“Symbolic”) to assist in its marketing efforts. Payments made to Symbolic during the three and six months ended June 30, 2018 were de minimis. During the three and six months ended July 1, 2017, the Company paid Symbolic $0.3 million and $1.0 million, respectively, which amounts included $0.1 million and $0.4 million, respectively, for the reimbursement of expenses paid by Symbolic on the Company’s behalf. Symbolic’s principal and founder was named the Company’s Vice President of Marketing in June 2017, and remains the president of Symbolic. |
CONTINGENT LIABILITIES
CONTINGENT LIABILITIES | 6 Months Ended |
Jun. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
CONTINGENT LIABILITIES | NOTE 12 - CONTINGENT LIABILITIES As of June 30, 2018, the Company was a defendant in three (3) lawsuits and is aware of certain other such claims. The lawsuits fall into three categories: traditional product liability litigation, non-product litigation, and municipal litigation, discussed in turn below. Traditional Product Liability Litigation One of the three lawsuits mentioned above involves claims for damages related to an allegedly defective product due to its design and/or manufacture. This lawsuit stems from a specific incident of personal injury and is based on a traditional product liability theory such as strict liability, negligence and/or breach of warranty. The Company management believes that the allegation in this case is unfounded, that the incident was unrelated to the design or manufacture of the firearm, and that there should be no recovery against the Company. Non-Product Liability David S. Palmer, on behalf of himself and all others similarly situated vs. Sturm, Ruger & Co. Municipal Litigation Municipal litigation generally includes those cases brought by cities or other governmental entities against firearms manufacturers, distributors and retailers seeking to recover damages allegedly arising out of the misuse of firearms by third-parties. There is only one remaining lawsuit of this type, filed by the City of Gary in Indiana State Court in 1999. The complaint in that case seeks damages, among other things, for the costs of medical care , police and emergency services, public health services , and other services as well as punitive damages. In addition , nuisance abatement and/or injunctive relief is sought to change th e design , manufacture , mark e ting and distribution practices of th e various defendants. The suit alleges , among other claims , negligence in the design of products , public nuisance , negligent distribution and marketing , negligence per se and deceptive advertising. The case does not allege a specific injury to a specific individual as a result of the misuse or use of any of the Company's products. After a long procedural history , the case was scheduled for trial on June 15 , 2009. The case was not tried on that date and was largely dormant until a status conference was held on July 27 , 2015. At that time , the court entered a scheduling order setting deadlines for plaintiff to file a Second Amended Complaint , for defendants to answer , and for defendants to file dispositive motions. The plaintiff did not file a Second Amended Complaint by the deadline. In 2015 , Indiana passed a new law such that Indiana Code §34-12-3-1 became applicable to the City's case. The defendants have filed a joint motion for judgment on the pleadings, asserting immunity under §34-12-3-1 and asking the court to revisit the Court of Appeals' decision holding the Protection of Lawful Commerce in Arms Act inapplicabl e to the City's claims. The motion was fully briefed by the parties. On September 29, 2016, the court entered an order staying the case pending a decision by the Indiana Supreme Court in KS&E Sports v . Runnels, which presents related issues. The Indiana Supreme Court decided KS&E Sports , 2017 , and the Gary Gary KS&E Sports ' motion for judgment on the pleadings . A hearing on the motion for judgment on the pleadings was held on December 12, 2017. On January 2, 2018, the Court entered an order dismissing the case in its entirety. The City filed a Notice of Appeal on February 1, 2018. The matter is in the process of being briefed by the parties. Summary of Claimed Damages and Explanation of Product Liability Accruals Punitive damages , as well as compensatory damages, are demanded in certain of the lawsuits and claims. In many instances , the plaintiff does not seek a specified amount of money , though aggregate amounts ultimately sought may exceed product liability accruals and applicable insurance coverage. For product liability claims made after July 10, 2000 , coverage is provided on an annual basis for losses exceeding $5 million per claim , or an aggregate maximum loss of $10 million annually , except for certain new claims which might be brought by governments or municipalities after July 10 , 2000 , which are excluded from coverage. The Company management monitors the status of known claims and the product liability accrual , which includes amounts for asserted and unasserted claims. While it is not possible to forecast the outcome of litigation or the timing of costs , in the opinion of management , after consultation with special and corporate counsel, it is not probable and is unlikely that litigation , including punitive damage claims , will have a material adverse effect on the financial position of the Compan y, but may have a material impact on the Company’ s financial results for a particular period. Product liability claim payments are made when appropriate if, as, and when claimants and the Company reach agreement upon an amount to finally resolve all claims. Legal costs are paid as the lawsuits and claims develop, the timing of which may vary greatly from case to case. A time schedule cannot be determined in advance with any reliability concerning when payments will be made in any given case. Provision is made for product liability claims based upon many factors related to the severity of the alleged injury and potential liability exposure, based upon prior claim experience. Because the Company's experience in defending these lawsuits and claims is that unfavorable outcomes are typically not probable or estimable, only in rare cases is an accrual established for such costs. In most cases, an accrual is established only for estimated legal defense costs. Product liability accruals are periodically reviewed to reflect then-current estimates of possible liabilities and expenses incurred to date and reasonably anticipated in the future. Threatened product liability claims are reflected in the Company's product liability accrual on the same basis as actual claims; i.e. A range of reasonably possible losses relating to unfavorable outcomes cannot be made. However, in product liability cases in which a dollar amount of damages is claimed, the amount of damages claimed, which totaled $0.1 million and $0.1 million at December 31, 2017 and 2016, respectively, are set forth as an indication of possible maximum liability the Company might be required to incur in these cases (regardless of the likelihood or reasonable probability of any or all of this amount being awarded to claimants) as a result of adverse judgments that are sustained on appeal. As of December 31, 2017 and 2016, the Company was a defendant in 3 and 5 lawsuits, respectively, involving its products and is aware of other such claims. During 2017 and 2016, respectively, 0 and 3 product-related claims were filed against the Company, 0 and 1 claims were settled, and 2 and 0 claims were dismissed. The Company’s product liability expense was $0.4 million in 2017, $2.1 million in 2016, and $0.9 million in 2015. This expense includes the cost of outside legal fees, insurance, and other expenses incurred in the management and defense of product liability matters. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Jun. 30, 2018 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 13 - SUBSEQUENT EVENTS On July 31, 2018, the Company’s Board of Directors authorized a dividend of 34¢ per share, for shareholders of record as of August 17, 2018, payable on August 31, 2018. The Company has evaluated events and transactions occurring subsequent to June 30, 2018 and determined that there were no other unreported events or transactions that would have a material impact on the Company’s results of operations or financial position. |
SIGNIFICANT ACCOUNTING POLICI20
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Organization | Organization: Sturm, Ruger & Company, Inc. (the “Company”) is principally engaged in the design, manufacture, and sale of firearms to domestic customers. Approximately 99% of sales are from firearms. Export sales represent approximately 4% of total sales. The Company’s design and manufacturing operations are located in the United States and almost all product content is domestic. The Company’s firearms are sold through a select number of independent wholesale distributors, principally to the commercial sporting market. The Company also manufactures investment castings made from steel alloys and metal injection molding (“MIM”) parts for internal use in its firearms and for sale to unaffiliated, third-party customers. Approximately 1% of sales are from the castings segment. |
Principles of Consolidation | Principles of Consolidation: The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary. All significant intercompany accounts and transactions have been eliminated. |
Revenue Recognition | Revenue Recognition: The Company recognizes revenue in accordance with the provisions of Accounting Standards Codification Topic 606, Revenue from Contracts with Customers , |
Fair Value of Financial Instruments | Fair Value of Financial Instruments: The carrying amounts of financial instruments, including cash, accounts receivable, accounts payable and accrued liabilities, approximate fair value due to the short-term maturity of these items. |
Use of Estimates | Use of Estimates: The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. |
Reclassifications | Reclassifications: Certain prior period balances have been reclassified to conform to current year presentation. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements: In May 2014, the FASB issued Accounting Standards Update (“ASU”) 2014-09, an update to Accounting Standards Codification Topic 606, Revenue from Contracts with Customers On March 30, 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation (Topic 718) On February 25, 2016, the FASB issued ASU 2016-02, Leases (Topic 842) |
REVENUE RECOGNITION AND CONTR21
REVENUE RECOGNITION AND CONTRACTS WITH CUSTOMERS (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Consolidated Balance Sheet | The effects of adjustments to the December 31, 2017 consolidated balance sheet for the adoption of ASC 606 were as follows: Balance at ASC 606 Opening Balance Trade accounts payable and accrued expenses 32,422 (4,000 ) 28,422 Deferred revenue from contracts with customers — 6,950 6,950 Deferred taxes 1,402 (723 ) 679 Retained earnings 321,323 (2,227 ) 319,096 |
Schedule of Revenue Recognized | The impact of the adoption of ASC 606 on revenue recognized during the three and six months ended June 30, 2018 is as follows: Three Months Ended Six Months Ended Contract liabilities with customers beginning of period $ 9,308 $ 6,950 Revenue recognized (4,895 ) (9,717 ) Revenue deferred 2,261 9,441 Contract liabilities with customers at June 30, 2018 $ 6,674 $ 6,674 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories consist of the following: June 30, 2018 December 31, 2017 Inventory at FIFO Finished products $ 11,415 $ 22,558 Materials and work in process 59,689 65,034 Gross inventories 71,104 87,592 Less: LIFO reserve (45,097 ) (45,180 ) Less: excess and obsolescence reserve (1,994 ) (2,698 ) Net inventories $ 24,013 $ 39,714 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of Reconciliation of Numerator and Denominator for Basic and Diluted Earnings Per Share | Set forth below is a reconciliation of the numerator and denominator for basic and diluted earnings per share calculations for the periods indicated: Three Months Ended Six Months Ended June 30, 2018 July 1, 2017 June 30, 2018 July 1, 2017 Numerator: Net income $ 15,189 $ 10,199 $ 29,453 $ 32,423 Denominator: Weighted average number of common shares outstanding – Basic 17,453,404 17,668,514 17,443,174 17,944,035 Dilutive effect of options and restricted stock units outstanding under the Company’s employee compensation plans 197,155 232,214 140,909 195,326 Weighted average number of common shares outstanding – Diluted 17,650,559 17,900,728 17,584,083 18,139,361 |
COMPENSATION PLANS (Tables)
COMPENSATION PLANS (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Stock Option Activity | A summary of changes in options outstanding under the 2007 SIP is summarized below: Shares Weighted Grant Date Outstanding at December 31, 2017 11,838 $ 8.95 $ 6.69 Granted — — — Exercised (4,616 ) 8.28 6.90 Expired — — — Outstanding at June 30, 2018 7,222 $ 9.38 $ 6.56 |
OPERATING SEGMENT INFORMATION (
OPERATING SEGMENT INFORMATION (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Operating Segment Financial Information | Selected operating segment financial information follows: (in thousands) Three Months Ended Six Months Ended June 30, July 1, June 30, July 1, Net Sales Firearms $ 127,017 $ 130,510 $ 256,899 $ 296,876 Castings Unaffiliated 1,394 1,344 2,670 2,334 Intersegment 5,771 6,281 11,179 15,121 7,165 7,625 13,849 17,455 Eliminations (5,771 ) (6,281 ) (11,179 ) (15,121 ) $ 128,411 $ 131,854 $ 259,569 $ 299,210 Income (Loss) Before Income Taxes Firearms $ 20,367 $ 15,466 $ 39,497 $ 49,497 Castings (455 ) 54 (943 ) 155 Corporate 137 170 396 229 $ 20,049 $ 15,690 $ 38,950 $ 49,881 June 30, December 31, Identifiable Assets Firearms $ 170,607 $ 206,091 Castings 10,409 12,524 Corporate 131,742 65,703 $ 312,758 $ 284,318 |
SIGNIFICANT ACCOUNTING POLICI26
SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | ||
Noncurrent deferred income tax liabilities | $ 889 | $ 1,402 |
Previously Reported [Member] | ||
Segment Reporting Information [Line Items] | ||
Current deferred income tax assets | ||
Noncurrent deferred income tax liabilities | ||
Sales [Member] | Firearms [Member] | ||
Segment Reporting Information [Line Items] | ||
Percentage of sales | 99.00% | |
Sales [Member] | Unaffiliated Castings [Member] | ||
Segment Reporting Information [Line Items] | ||
Percentage of sales | 1.00% | |
Sales [Member] | Non-US [Member] | ||
Segment Reporting Information [Line Items] | ||
Percentage of sales | 4.00% | |
Accounting Standards Update 2016-09 [Member] | ||
Segment Reporting Information [Line Items] | ||
Effective income tax rate reduction | 2.00% |
REVENUE RECOGNITION AND CONTR27
REVENUE RECOGNITION AND CONTRACTS WITH CUSTOMERS (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | |
Revenue from Contract with Customer [Abstract] | |||
Deferred contract liability | $ 9,400 | ||
Revenue previously deferred | 9,700 | ||
Accrued liability | $ 4,000 | ||
Deferred contract liability | $ 6,700 | 6,700 | $ 6,900 |
Increase in deferred contract liability | 2,900 | ||
Increase in deferred tax asset | 700 | ||
Decrease in retained earnings | (2,200) | ||
Net increase in firearms sales | $ 2,600 | $ 300 |
REVENUE RECOGNITION AND CONTR28
REVENUE RECOGNITION AND CONTRACTS WITH CUSTOMERS (Schedule of Consolidated Balance Sheet) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Trade accounts payable and accrued expenses | $ 28,900 | $ 32,422 | |
Deferred revenue from contracts with customers | 6,674 | $ 9,308 | 6,950 |
Deferred taxes | 1,402 | ||
Retained earnings | $ 338,753 | 321,323 | |
Adjustments due ASC 606 [Member] | |||
Trade accounts payable and accrued expenses | (4,000) | ||
Deferred revenue from contracts with customers | 6,950 | ||
Deferred taxes | (723) | ||
Retained earnings | (2,227) | ||
After Adjustment [Member] | |||
Trade accounts payable and accrued expenses | 28,422 | ||
Deferred revenue from contracts with customers | 6,950 | ||
Deferred taxes | 679 | ||
Retained earnings | $ 319,096 |
REVENUE RECOGNITION AND CONTR29
REVENUE RECOGNITION AND CONTRACTS WITH CUSTOMERS Schedule of Revenue Recognized (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2018 | Jun. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | ||
Contract liabilities with customers beginning of period | $ 9,308 | $ 6,950 |
Revenue recognized | (4,895) | (9,717) |
Revenue deferred | 2,261 | 9,441 |
Contract liabilities with customers at June 30, 2018 | $ 6,674 | $ 6,674 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Inventory at FIFO | ||
Finished products | $ 11,415 | $ 22,558 |
Materials and work in process | 59,689 | 65,034 |
Gross inventories | 71,104 | 87,592 |
Less: LIFO reserve | (45,097) | (45,180) |
Less: excess and obsolescence reserve | (1,994) | (2,698) |
Net inventories | $ 24,013 | $ 39,714 |
LINE OF CREDIT (Details)
LINE OF CREDIT (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Jun. 15, 2018 |
Line of Credit Facility [Abstract] | ||
Credit facility with a bank | $ 0 | $ 40 |
EMPLOYEE BENEFIT PLANS (Details
EMPLOYEE BENEFIT PLANS (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jul. 01, 2017 | Jun. 30, 2018 | Jul. 01, 2017 | |
Retirement Benefits [Abstract] | ||||
Expenses related to defined contribution plan | $ 0.8 | $ 0.8 | $ 1.6 | $ 1.8 |
Future defined contribution plans | 1.6 | |||
Supplemental discretionary contributions | $ 1.3 | $ 1.3 | 2.6 | $ 3.2 |
Supplemental contributions to the plan during the remainder of fiscal year | $ 1.3 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jul. 01, 2017 | Jun. 30, 2018 | Jul. 01, 2017 | |
Effective income tax rate | 24.20% | 35.00% | 24.40% | 35.00% |
Income tax payments | $ 8 | $ 16.2 | $ 8 | $ 16.3 |
Minimum [Member] | ||||
Federal tax rate | 21.00% | |||
Maximum [Member] | ||||
Federal tax rate | 35.00% |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jul. 01, 2017 | Jun. 30, 2018 | Jul. 01, 2017 | |
Numerator: | ||||
Net income | $ 15,189 | $ 10,199 | $ 29,453 | $ 32,423 |
Denominator: | ||||
Weighted average number of common shares outstanding - Basic | 17,453,404 | 17,668,514 | 17,443,174 | 17,944,035 |
Dilutive effect of options and restricted stock units outstanding under the Company's employee compensation plans | 197,155 | 232,214 | 140,909 | 195,326 |
Weighted average number of common shares outstanding - Diluted | 17,650,559 | 17,900,728 | 17,584,083 | 18,139,361 |
COMPENSATION PLANS (Narrative)
COMPENSATION PLANS (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jul. 01, 2017 | Jun. 30, 2018 | Jul. 01, 2017 | Apr. 30, 2007 | |
Stock Incentive Plan 2017 [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares reserved for future issuance | 750,000 | 750,000 | |||
Shares available for future grants | 543,000 | 543,000 | |||
Stock Incentive Plan 2007 [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares reserved for future issuance | 2,550,000 | ||||
Share issued | 2,181,000 | ||||
Restricted Stock Units (RSUs) [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 3 years | ||||
Restricted stock units issued | 184,200 | ||||
Total compensation costs | $ 8,800 | ||||
Compensation expense recognized | $ 1,500 | $ 900 | $ 2,700 | $ 1,600 |
COMPENSATION PLANS (Schedule of
COMPENSATION PLANS (Schedule of Stock Option Activity) (Details) $ / shares in Units, $ in Millions | 6 Months Ended |
Jun. 30, 2018USD ($)$ / sharesshares | |
Shares | |
Outstanding at Beginning of Year | shares | 11,838 |
Granted | shares | |
Exercised | shares | (4,616) |
Expired | shares | |
Outstanding at End of Period | shares | 7,222 |
Weighted-Average Exercise Price | |
Outstanding at Beginning of Year | $ 8.95 |
Granted | |
Exercised | 8.28 |
Expired | |
Outstanding at End of Period | 9.38 |
Grant Date Fair Value | |
Outstanding at Beginning of Year | 6.69 |
Granted | |
Exercised | 6.90 |
Expired | |
Outstanding at End of Period | $ 6.56 |
Weighted-Average Remaining Contractual Life | |
Aggregate intrinsic value of options outstanding | $ | $ 0.3 |
OPERATING SEGMENT INFORMATION37
OPERATING SEGMENT INFORMATION (Narrative) (Details) | 6 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Number of Operating Segments | 2 |
OPERATING SEGMENT INFORMATION38
OPERATING SEGMENT INFORMATION (Schedule of Operating Segment Financial Information) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jul. 01, 2017 | Jun. 30, 2018 | Jul. 01, 2017 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||||
Net Sales | $ 128,411 | $ 131,854 | $ 259,569 | $ 299,210 | |
Income (Loss) Before Income Taxes | 20,049 | 15,690 | 38,950 | 49,881 | |
Identifiable Assets | 312,758 | 312,758 | $ 284,318 | ||
Firearms [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net Sales | 127,017 | 130,510 | 256,899 | 296,876 | |
Income (Loss) Before Income Taxes | 20,367 | 15,466 | 39,497 | 49,497 | |
Identifiable Assets | 170,607 | 170,607 | 206,091 | ||
Unaffiliated Castings [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net Sales | 1,394 | 1,344 | 2,670 | 2,334 | |
Income (Loss) Before Income Taxes | (455) | 54 | (943) | 155 | |
Identifiable Assets | 10,409 | 10,409 | 12,524 | ||
Corporate [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Income (Loss) Before Income Taxes | 137 | 170 | 396 | 229 | |
Identifiable Assets | 131,742 | 131,742 | $ 65,703 | ||
Intersegment Elimination [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net Sales | (5,771) | (6,281) | (11,179) | (15,121) | |
Intersegment Elimination [Member] | Unaffiliated Castings [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net Sales | 5,771 | 6,281 | 11,179 | 15,121 | |
Operating Segments [Member] | Unaffiliated Castings [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net Sales | $ 7,165 | $ 7,625 | $ 13,849 | $ 17,455 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jul. 01, 2017 | Jun. 30, 2018 | Jul. 01, 2017 | |
National Rifle Association [Member] | ||||
Related Party Transaction [Line Items] | ||||
Amount of payments | $ 132 | $ 127 | $ 211 | $ 302 |
Symbolic [Member] | ||||
Related Party Transaction [Line Items] | ||||
Amount of payments | 300 | 1,000 | ||
Reimbursement of expenses | $ 100 | $ 400 |
CONTINGENT LIABILITIES (Narrati
CONTINGENT LIABILITIES (Narrative) (Details) $ in Millions | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2018USD ($)Item | Dec. 31, 2017USD ($)Item | Dec. 31, 2016USD ($)Item | Dec. 31, 2015USD ($) | Jun. 30, 2017 | Jun. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | ||||||
Number of lawsuits against the company | 3 | 3 | 5 | |||
Minimum limit of per claim for providing insurance coverage on annual basis | $ 5 | |||||
Maximum limit of aggregate loss incurred annually for providing insurance coverage on annual basis | $ 10 | |||||
Total amount of damages claimed | $ 0.1 | $ 0.1 | ||||
Total Product Liability Expense | $ 0.4 | $ 2.1 | $ 0.9 | |||
Number of new lawsuits | Item | 0 | 3 | ||||
Number of settled lawsuits | Item | 0 | 1 | ||||
Number of claims dismissed | Item | 2 | 0 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) | Jul. 31, 2018$ / shares |
Subsequent Event [Member] | |
Subsequent Event [Line Items] | |
Dividend authorized | $ 0.34 |