Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2020 | Oct. 26, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | SUP | |
Entity Registrant Name | SUPERIOR INDUSTRIES INTERNATIONAL, INC. | |
Entity Central Index Key | 0000095552 | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 25,591,930 | |
Smaller Reporting Company | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity File Number | 1-6615 | |
Entity Tax Identification Number | 95-2594729 | |
Entity Address, Address Line One | 26600 Telegraph Road | |
Entity Address, Address Line Two | Suite 400 | |
Entity Address, City or Town | Southfield | |
Entity Address, State or Province | MI | |
Entity Address, Postal Zip Code | 48033 | |
City Area Code | 248 | |
Local Phone Number | 352-7300 | |
Entity Interactive Data Current | Yes | |
Title of 12(b) Security | Common Stock, $0.01 par value | |
Security Exchange Name | NYSE | |
Entity Incorporation, State or Country Code | DE | |
Document Quarterly Report | true | |
Document Transition Report | false |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Income Statement [Abstract] | ||||
NET SALES | $ 317,103 | $ 352,014 | $ 763,050 | $ 1,062,206 |
Cost of sales | 285,135 | 335,967 | 730,762 | 973,042 |
GROSS PROFIT | 31,968 | 16,047 | 32,288 | 89,164 |
Selling, general and administrative expenses | 12,730 | 16,290 | 36,541 | 46,737 |
Impairment of goodwill and indefinite-lived intangibles | 193,641 | |||
INCOME (LOSS) FROM OPERATIONS | 19,238 | (243) | (197,894) | 42,427 |
Interest expense, net | (10,414) | (11,807) | (34,448) | (35,532) |
Other (expense) income, net | (1,576) | 634 | (923) | 3,393 |
INCOME (LOSS) BEFORE INCOME TAXES | 7,248 | (11,416) | (233,265) | 10,288 |
Income tax benefit (provision) | 3,898 | 4,785 | 11,111 | (7,699) |
NET INCOME (LOSS) | $ 11,146 | $ (6,631) | $ (222,154) | $ 2,589 |
EARNINGS (LOSS) PER SHARE – BASIC | $ 0.12 | $ (0.57) | $ (9.66) | $ (0.84) |
EARNINGS (LOSS) PER SHARE – DILUTED | $ 0.12 | $ (0.57) | $ (9.66) | $ (0.84) |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 11,146 | $ (6,631) | $ (222,154) | $ 2,589 |
Other comprehensive income (loss), net of tax: | ||||
Foreign currency translation gain (loss) | 16,384 | (22,143) | (9,706) | (21,459) |
Change in unrecognized gains (losses) on derivative instruments: | ||||
Change in fair value of derivatives | 5,818 | (10,406) | (32,934) | (1,862) |
Tax (provision) benefit | (1,135) | 2,104 | 7,618 | 342 |
Change in unrecognized gains (losses) on derivative instruments, net of tax | 4,683 | (8,302) | (25,316) | (1,520) |
Defined benefit pension plan: | ||||
Amortization of actuarial losses on pension obligations | 72 | 50 | 216 | 155 |
Tax (provision) | (15) | (11) | (45) | (33) |
Pension changes, net of tax | 57 | 39 | 171 | 122 |
Other comprehensive income (loss), net of tax | 21,124 | (30,406) | (34,851) | (22,857) |
Comprehensive income (loss) | $ 32,270 | $ (37,037) | $ (257,005) | $ (20,268) |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 111,131 | $ 77,927 |
Accounts receivable, net | 77,675 | 76,786 |
Inventories, net | 141,287 | 168,470 |
Income taxes receivable | 4,067 | 4,630 |
Other current assets | 16,329 | 26,375 |
Total current assets | 350,489 | 354,188 |
Property, plant and equipment, net | 507,037 | 529,282 |
Deferred income tax assets, net | 53,307 | 38,607 |
Goodwill | 184,832 | |
Intangibles, net | 112,341 | 137,078 |
Other non-current assets | 55,837 | 67,880 |
Total assets | 1,079,011 | 1,311,867 |
Current liabilities: | ||
Accounts payable | 149,808 | 123,112 |
Short-term debt | 6,034 | 4,010 |
Accrued expenses | 72,857 | 60,845 |
Income taxes payable | 2,208 | 3,148 |
Total current liabilities | 230,907 | 191,115 |
Long-term debt (less current portion) | 611,706 | 611,025 |
Non-current income tax liabilities | 7,451 | 6,523 |
Deferred income tax liabilities, net | 12,369 | |
Other non-current liabilities | 81,321 | 71,640 |
Commitments and contingent liabilities (Note 17) | ||
Mezzanine equity: | ||
Preferred stock, $0.01 par value Authorized - 1,000,000 shares Issued and outstanding - 150,000 shares outstanding at September 30, 2020 and December 31, 2019 | 174,597 | 160,980 |
European non-controlling redeemable equity | 1,580 | 6,525 |
Shareholders’ equity (deficit): | ||
Common stock, $0.01 par value Authorized - 100,000,000 shares Issued and outstanding - 25,591,930 and 25,128,158 shares at September 30, 2020 and December 31, 2019 | 94,058 | 93,331 |
Accumulated other comprehensive loss | (134,929) | (100,078) |
Retained earnings | 12,320 | 258,437 |
Total shareholders’ equity (deficit) | (28,551) | 251,690 |
Total liabilities, mezzanine equity and shareholders’ equity (deficit) | $ 1,079,011 | $ 1,311,867 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2020 | Dec. 31, 2019 |
Statement Of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 150,000 | 150,000 |
Preferred stock, shares outstanding | 150,000 | 150,000 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 25,591,930 | 25,128,158 |
Common stock, shares outstanding | 25,591,930 | 25,128,158 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net (loss) income | $ (222,154) | $ 2,589 |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | ||
Depreciation and amortization | 73,134 | 77,500 |
Income tax, non-cash changes | (19,389) | (3,472) |
Impairment of goodwill and indefinite-lived intangibles | 193,641 | |
Stock-based compensation | 727 | 3,695 |
Amortization of debt issuance costs | 3,140 | 3,681 |
Other non-cash items | (1,493) | 444 |
Accounts receivable | (4,062) | (30,464) |
Inventories | 29,292 | 9,028 |
Other assets and liabilities | 11,520 | 20,313 |
Accounts payable | 27,438 | 11,176 |
Income taxes | 717 | 7,861 |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 92,511 | 102,351 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Additions to property, plant and equipment | (33,592) | (47,584) |
Proceeds from sale of fixed assets | 859 | |
Other investing activities | 9,631 | |
NET CASH USED IN INVESTING ACTIVITIES | (32,733) | (37,953) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from issuance of long-term debt | 11,690 | |
Repayments of debt | (24,851) | (35,015) |
Cash dividends paid | (10,161) | (19,171) |
Purchase of non-controlling redeemable shares | (4,981) | (3,888) |
Payments related to tax withholdings for stock-based compensation | (108) | |
Proceeds from borrowings on revolving credit facility | 313,825 | 69,600 |
Repayments of borrowings on revolving credit facility | (316,910) | (69,600) |
Other financing activities | (723) | (1,035) |
NET CASH USED IN FINANCING ACTIVITIES | (32,111) | (59,217) |
Effect of exchange rate changes on cash | 5,537 | (3,337) |
Net increase in cash and cash equivalents | 33,204 | 1,844 |
Cash and cash equivalents at the beginning of the period | 77,927 | 47,464 |
Cash and cash equivalents at the end of the period | $ 111,131 | $ 49,308 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Shareholders' Equity (Deficit) - USD ($) $ in Thousands | Total | Common Stock | Unrecognized Gains (Losses) on Derivative Instruments | Pension Obligations | Cumulative Translation Adjustment | Retained Earnings |
Beginning of period at Dec. 31, 2018 | $ 373,265 | $ 87,723 | $ (3,205) | $ (3,000) | $ (99,290) | $ 391,037 |
Beginning of the period (in shares) at Dec. 31, 2018 | 25,019,237 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net (loss) income | 2,589 | 2,589 | ||||
Change in unrecognized gains/losses on derivative instruments, net of tax | (1,520) | (1,520) | ||||
Change in employee benefit plans, net of taxes | 122 | 122 | ||||
Net foreign currency translation adjustment | (21,459) | (21,459) | ||||
Common stock issued, net of shares withheld for employee taxes (in shares) | 108,921 | |||||
Stock-based compensation | 3,587 | $ 3,587 | ||||
Cash dividend declared | (4,597) | (4,597) | ||||
Redeemable preferred 9% dividend, participating dividend and accretion | (23,275) | (23,275) | ||||
European non-controlling redeemable equity dividend | (496) | (496) | ||||
End of period at Sep. 30, 2019 | 328,216 | $ 91,310 | (4,725) | (2,878) | (120,749) | 365,258 |
End of the period (in shares) at Sep. 30, 2019 | 25,128,158 | |||||
Beginning of period at Dec. 31, 2018 | 373,265 | $ 87,723 | (3,205) | (3,000) | (99,290) | 391,037 |
Beginning of the period (in shares) at Dec. 31, 2018 | 25,019,237 | |||||
End of period at Dec. 31, 2019 | $ 251,690 | $ 93,331 | 9,951 | (5,571) | (104,458) | 258,437 |
End of the period (in shares) at Dec. 31, 2019 | 25,128,158 | 25,128,158 | ||||
Beginning of period at Jun. 30, 2019 | $ 371,190 | $ 89,532 | 3,577 | (2,917) | (98,606) | 379,604 |
Beginning of the period (in shares) at Jun. 30, 2019 | 25,114,598 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net (loss) income | (6,631) | (6,631) | ||||
Change in unrecognized gains/losses on derivative instruments, net of tax | (8,302) | (8,302) | ||||
Change in employee benefit plans, net of taxes | 39 | 39 | ||||
Net foreign currency translation adjustment | (22,143) | (22,143) | ||||
Common stock issued, net of shares withheld for employee taxes (in shares) | 13,560 | |||||
Stock-based compensation | 1,778 | $ 1,778 | ||||
Cash dividend declared | (15) | (15) | ||||
Redeemable preferred 9% dividend, participating dividend and accretion | (7,587) | (7,587) | ||||
European non-controlling redeemable equity dividend | (113) | (113) | ||||
End of period at Sep. 30, 2019 | 328,216 | $ 91,310 | (4,725) | (2,878) | (120,749) | 365,258 |
End of the period (in shares) at Sep. 30, 2019 | 25,128,158 | |||||
Beginning of period at Dec. 31, 2019 | $ 251,690 | $ 93,331 | 9,951 | (5,571) | (104,458) | 258,437 |
Beginning of the period (in shares) at Dec. 31, 2019 | 25,128,158 | 25,128,158 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net (loss) income | $ (222,154) | (222,154) | ||||
Change in unrecognized gains/losses on derivative instruments, net of tax | (25,316) | (25,316) | ||||
Change in employee benefit plans, net of taxes | 171 | 171 | ||||
Net foreign currency translation adjustment | (9,706) | (9,706) | ||||
Common stock issued, net of shares withheld for employee taxes (in shares) | 463,772 | |||||
Stock-based compensation | 727 | $ 727 | ||||
Redeemable preferred 9% dividend, participating dividend and accretion | (23,811) | (23,811) | ||||
European non-controlling redeemable equity dividend | (152) | (152) | ||||
End of period at Sep. 30, 2020 | $ (28,551) | $ 94,058 | (15,365) | (5,400) | (114,164) | 12,320 |
End of the period (in shares) at Sep. 30, 2020 | 25,591,930 | 25,591,930 | ||||
Beginning of period at Jun. 30, 2020 | $ (53,176) | $ 93,541 | (20,048) | (5,457) | (130,548) | 9,336 |
Beginning of the period (in shares) at Jun. 30, 2020 | 25,591,930 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net (loss) income | 11,146 | 11,146 | ||||
Change in unrecognized gains/losses on derivative instruments, net of tax | 4,683 | 4,683 | ||||
Change in employee benefit plans, net of taxes | 57 | 57 | ||||
Net foreign currency translation adjustment | 16,384 | 16,384 | ||||
Stock-based compensation | 517 | $ 517 | ||||
Redeemable preferred 9% dividend, participating dividend and accretion | (8,056) | (8,056) | ||||
European non-controlling redeemable equity dividend | (106) | (106) | ||||
End of period at Sep. 30, 2020 | $ (28,551) | $ 94,058 | $ (15,365) | $ (5,400) | $ (114,164) | $ 12,320 |
End of the period (in shares) at Sep. 30, 2020 | 25,591,930 | 25,591,930 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Shareholders' Equity (Deficit) (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Statement Of Stockholders Equity [Abstract] | ||
Cash dividend declared per share | $ 0.09 | $ 0.09 |
Preferred stock, dividend rate, percentage | 9.00% | 9.00% |
Nature of Operations and Presen
Nature of Operations and Presentation of Condensed Consolidated Financial Statements | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Nature of Operations and Presentation of Condensed Consolidated Financial Statements | NOTE 1 – NATURE OF OPERATIONS AND PRESENTATION OF CONDENSED CONSOLIDATED FINANCIAL STATEMENTS Nature of Operations Superior Industries International, Inc.’s (referred herein as the “Company,” “Superior,” or “we” and “our”) principal business is the design and manufacture of aluminum wheels for sale to original equipment manufacturers (OEMs) in North America and Europe and aftermarket distributors in Europe. We employ approximately 7,500 employees, operating in eight manufacturing facilities in North America and Europe with a combined annual manufacturing capacity of approximately 20 million wheels. We are one of the largest suppliers to global OEMs and we believe we are the #1 European aluminum wheel aftermarket manufacturer and supplier. Our OEM aluminum wheels accounted for approximately 92 percent of our sales in the first nine months of 2020 and are primarily sold for factory installation on vehicle models manufactured by BMW (including Mini), Daimler AG Company (Mercedes-Benz, AMG, Smart), FCA, Ford, GM, Honda, Jaguar-Land Rover, Mazda, Mitsubishi, Nissan, PSA, Renault, Subaru, Suzuki, Toyota, VW Group (Volkswagen, Audi, SEAT, Skoda, Porsche, Bentley) and Volvo. We also sell aluminum wheels to the European aftermarket under the brands ATS, RIAL, ALUTEC and ANZIO. North America and Europe represent the principal markets for our products, but we have a global presence and diversified customer base consisting of North American, European and Asian OEMs. We have determined that our North American and European operations should be treated as separate reportable segments as further described in Note 5, “Business Segments.” Presentation of Condensed Consolidated Financial Statements The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the Security and Exchange Commission’s (“SEC’s”) requirements for quarterly reports on Form 10-Q and U.S. Generally Accepted Accounting Principles (“GAAP”) and, in our opinion, contain all adjustments, of a normal and recurring nature, which are necessary for fair presentation of (i) the condensed consolidated statements of income (loss) for the three and nine-month periods ended September 30, 2020 and September 30, 2019, (ii) the condensed consolidated statements of comprehensive income (loss) for the three and nine-month periods ended September 30, 2020 and September 30, 2019, (iii) the condensed consolidated balance sheets at September 30, 2020 and December 31, 2019, (iv) the condensed consolidated statements of cash flows for the nine-month periods ended September 30, 2020 and September 30, 2019, and (v) the condensed consolidated statements of shareholders’ equity (deficit) for the three and nine-month periods ended September 30, 2020 and September 30, 2019. This Quarterly Report on Form 10-Q should be read in conjunction with our consolidated financial statements and notes thereto filed with the SEC in our 2019 Annual Report on Form 10-K. Interim financial reporting standards require us to make estimates that are based on assumptions regarding the outcome of future events and circumstances not known at that time, including the use of estimated effective tax rates. Inevitably, some assumptions will not materialize, unanticipated events or circumstances may occur which vary from those estimates and such variations may significantly affect our future results. Additionally, interim results may not be indicative of our results for future interim periods or our annual results. Certain prior year amounts have been reclassified to conform with the current year presentation. Cash Paid for Interest and Taxes and Non-Cash Investing Activities Cash paid for interest was $27.1 million and $28.2 million for the nine months ended September 30, 2020 and September 30, 2019, respectively. Net cash income taxes paid was $7.6 million and $6.5 million for the nine months ended September 30, 2020 and September 30, 2019, respectively. As of September 30, 2020 and September 30, 2019, $0.2 million and $15.8 million, respectively, of equipment had been purchased but not yet paid and was included in accounts payable in our condensed consolidated balance sheets. New Accounting Standards Accounting Standards Update (“ASU”) 2018-13, “Fair Value Measurement .” Effective January 1, 2020, the Company adopted ASU 2018-13 which allows companies to remove, modify and add certain disclosures related to fair value measurements. The adoption of this standard did not have a significant impact on the Company’s condensed consolidated financial statement disclosures. Accounting Standards Issued but Not Yet Adopted ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” In June 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-13, "Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments", which requires entities to use a new impairment model based on current expected credit losses (“CECL”) rather than incurred losses. Under CECL, estimated credit losses would incorporate relevant information about past events, current conditions and reasonable and supportable forecasts and any expected credit losses would be recognized at the time of sale. As a smaller reporting company (as defined under SEC regulations), the Company is not required to adopt the standard until fiscal years beginning after December 31, 2022. We are evaluating the impact this standard will have on our financial statements and disclosures. ASU 2018-14, “Compensation - Retirement Benefits - Defined Benefit Plans.” In August 2018, the FASB issued an ASU entitled “Compensation - Retirement Benefits - Defined Benefit Plans - General Subtopic 715-20 - Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans” (ASU 2018-14), which is designed to improve the effectiveness of disclosures by removing and adding disclosures related to defined benefit plans. ASU 2018-14 is effective for fiscal years ending after December 15, 2020. We are evaluating the impact this new standard will have on our financial statement disclosures. ASU 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” In March 2020, the FASB issued ASU 2020-04 entitled “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting,” which provides temporary optional guidance to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. The relief provided by this guidance is elective and applies to all entities, subject to meeting certain criteria, that have contracts, hedging relationships, and other transactions that reference the London Interbank Offered Rate (“LIBOR”) or another reference rate expected to be discontinued because of reference rate reform initiatives being undertaken in an effort to identify alternative reference rates that are more observable or transaction based and less susceptible to manipulation. The optional amendments of this guidance are effective for all entities upon adoption. We are currently assessing the impact of this new standard on our financial statements and disclosures. |
Revenue
Revenue | 9 Months Ended |
Sep. 30, 2020 | |
Revenue From Contract With Customer [Abstract] | |
Revenue | NOTE 2 – REVENUE In accordance with Accounting Standards Codification (“ASC”) 606, “Revenue from Contracts with Customers,” the Company disaggregates revenue from contracts with customers into our reportable segments, North America and Europe. Revenues by segment for the three and nine-month periods ended September 30, 2020 and 2019 are summarized in Note 5, “Business Segments.” The Company’s customer receivables and current and long-term contract liabilities balances as of September 30, 2020 and December 31, 2019 are as follows (in thousands): September 30, 2020 December 31, 2019 Change Customer receivables $ 72,272 $ 68,283 $ 3,989 Contract liabilities—current 8,105 5,880 2,225 Contract liabilities—noncurrent 12,465 13,577 (1,112 ) |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | NOTE 3 – FAIR VALUE MEASUREMENTS The Company applies fair value accounting for all financial assets and liabilities and non-financial assets and liabilities that are recognized or disclosed at fair value in the financial statements on a recurring basis, while other assets and liabilities are measured at fair value on a nonrecurring basis, such as an asset impairment. Fair value is estimated by applying the following hierarchy, which prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement: Level 1 - Quoted prices in active markets for identical assets or liabilities. Level 2 - Observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 - Inputs that are generally unobservable and typically reflect management’s estimate of assumptions that market participants would use in pricing the asset or liability. The carrying amounts for cash and cash equivalents, accounts receivable, accounts payable and accrued expenses approximate their fair values due to the short period of time until maturity. Cash and Cash Equivalents Cash and cash equivalents generally consist of cash, certificates of deposit and fixed deposits and money market funds with original maturities of three months or less. Derivative Financial Instruments Our derivatives are over-the-counter customized derivative transactions and are not exchange traded. We estimate the fair value of these instruments using industry-standard valuation models such as discounted cash flow. These models project future cash flows and discount the future amounts to a present value using market-based expectations for interest rates, foreign exchange rates, commodity prices and the contractual terms of the derivative instruments. The discount rate used is the relevant interbank deposit rate (e.g., LIBOR) plus an adjustment for non-performance risk. The following tables categorize items measured at fair value as of September 30, 2020 and December 31, 2019: Fair Value Measurement at Reporting Date Using September 30, 2020 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (Dollars in thousands) Assets Derivative contracts $ 3,016 $ — $ 3,016 $ — Total $ 3,016 $ — $ 3,016 $ — Liabilities . Derivative contracts $ 28,984 $ — $ 28,984 $ — Total $ 28,984 $ — $ 28,984 $ — Fair Value Measurement at Reporting Date Using December 31, 2019 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (Dollars in thousands) Assets Derivative contracts $ 21,973 $ — $ 21,973 $ — Total $ 21,973 $ — $ 21,973 $ — Liabilities Derivative contracts $ 8,709 $ — $ 8,709 $ — Total $ 8,709 $ — $ 8,709 $ — Debt Instruments The carrying values of the Company’s debt instruments vary from their fair values. The fair values were determined by reference to transacted prices of these instruments (Level 2 input based on the U.S. GAAP fair value hierarchy). The estimated fair value, as well as the carrying value, of the Company’s debt instruments are shown below: September 30, 2020 December 31, 2019 (Dollars in thousands) Estimated aggregate fair value $ 563,568 $ 606,093 Aggregate carrying value (1) 630,200 630,635 (1) |
Derivative Financial Instrument
Derivative Financial Instruments | 9 Months Ended |
Sep. 30, 2020 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | NOTE 4 - DERIVATIVE FINANCIAL INSTRUMENTS Derivative Instruments and Hedging Activities We use derivatives to partially offset our exposure to foreign currency, interest rate, aluminum and other commodity price risk. We may enter into forward contracts, option contracts, swaps, collars or other derivative instruments to offset some of the risk on expected future cash flows and on certain existing assets and liabilities. However, we may choose not to hedge certain exposures for a variety of reasons including, but not limited to, accounting considerations and the prohibitive economic cost of hedging particular exposures. There can be no assurance the hedges will offset more than a portion of the financial impact resulting from movements in foreign currency exchange rates, interest rates, and aluminum or other commodity prices. To help protect gross margins from fluctuations in foreign currency exchange rates, certain of our subsidiaries, whose functional currency is the U.S. dollar or the Euro, hedge a portion of their forecasted foreign currency costs denominated in the Mexican Peso and Polish Zloty, respectively. We may hedge portions of our forecasted foreign currency exposure up to 48 months. We record all derivatives in the condensed consolidated balance sheets at fair value. Our accounting treatment for these instruments is based on the hedge designation. Gains or losses on derivatives that are designated as hedging instruments are recorded in accumulated other comprehensive income (loss) (“AOCI”) until the hedged item is recognized in earnings, at which point accumulated gains or losses will be recognized in earnings and classified with the underlying hedged transaction. Derivatives that are not designated as hedging instruments are adjusted to fair value through earnings in the financial statement line item to which the derivative relates. The Company has derivatives that are designated as hedging instruments as well as derivatives that do not qualify for designation as hedging instruments. The following tables display the fair value of derivatives by balance sheet line item at September 30, 2020 and December 31, 2019: September 30, 2020 Other Current Assets Other Non-current Assets Accrued Liabilities Other Non-current Liabilities (Dollars in thousands) Foreign exchange forward contracts designated as hedging instruments $ 794 $ 867 $ 7,753 $ 10,293 Foreign exchange forward contracts not designated as hedging instruments 7 — 466 — Aluminum forward contracts designated as hedging instruments — — 123 — Natural gas forward contracts designated as hedging instruments 837 511 142 39 Interest rate swap contracts designated as hedging instruments — — 4,872 5,296 Total derivative financial instruments $ 1,638 $ 1,378 $ 13,356 $ 15,628 December 31, 2019 Other Current Assets Other Non-current Assets Accrued Liabilities Other Non-current Liabilities (Dollars in thousands) Foreign exchange forward contracts designated as hedging instruments $ 7,808 $ 12,821 $ 60 $ 100 Foreign exchange forward contracts not designated as hedging instruments 1,196 — 554 — Aluminum forward contracts designated as hedging instruments 60 — 127 — Natural gas forward contracts designated as hedging instruments 81 7 1,312 727 Interest rate swap contracts designated as hedging instruments — — 2,304 3,525 Total derivative financial instruments $ 9,145 $ 12,828 $ 4,357 $ 4,352 The following table summarizes the notional amount and estimated fair value of our derivative financial instruments: September 30, 2020 December 31, 2019 Notional U.S. Dollar Amount Fair Value Notional U.S. Dollar Amount Fair Value (Dollars in thousands) Foreign currency forward contracts designated as hedging instruments $ 431,025 $ (16,385 ) $ 449,181 $ 20,469 Foreign exchange forward contracts not designated as hedging instruments 15,539 (459 ) 73,491 642 Aluminum forward contracts designated as hedging instruments 4,971 (123 ) 9,405 (67 ) Natural gas forward contracts designated as hedging instruments 6,254 1,167 5,816 (1,951 ) Interest rate swap contracts designated as hedging instruments 235,000 (10,168 ) 260,000 (5,829 ) Total derivative financial instruments $ 692,789 $ (25,968 ) $ 797,893 $ 13,264 Notional amounts are presented on a net basis. The notional amounts of the derivative financial instruments do not represent amounts exchanged by the parties and, therefore, are not a direct measure of our exposure to the financial risks. The amounts exchanged are calculated by reference to the notional amounts and by other terms of the derivatives, such as interest rates, foreign currency exchange rates or commodity prices. The following tables summarize the gain or loss recognized in AOCI as of September 30, 2020 and 2019, the amounts reclassified from AOCI into earnings and the amounts recognized directly into earnings for the three and nine months ended September 30, 2020 and 2019: Three Months Ended September 30, 2020 Amount of Gain or (Loss) Recognized in AOCI on Derivatives Amount of Pre-tax Gain or (Loss) Reclassified from AOCI into Income Amount of Pre-tax Gain or (Loss) Recognized in Income on Derivatives (Dollars in thousands) Derivative Contracts $ 4,683 $ (2,261 ) $ 3,458 Total $ 4,683 $ (2,261 ) $ 3,458 Nine Months Ended September 30, 2020 Amount of Gain or (Loss) Recognized in AOCI on Derivatives Amount of Pre-tax Gain or (Loss) Reclassified from AOCI into Income Amount of Pre-tax Gain or (Loss) Recognized in Income on Derivatives (Dollars in thousands) Derivative Contracts $ (25,316 ) $ (7,355 ) $ (289 ) Total $ (25,316 ) $ (7,355 ) $ (289 ) Three Months Ended September 30, 2019 Amount of Gain or (Loss) Recognized in AOCI on Derivatives Amount of Pre-tax Gain or (Loss) Reclassified from AOCI into Income Amount of Pre-tax Gain or (Loss) Recognized in Income on Derivatives (Dollars in thousands) Derivative Contracts $ (8,302 ) $ 703 $ 1,817 Total $ (8,302 ) $ 703 $ 1,817 Nine Months Ended September 30, 2019 Amount of Gain or (Loss) Recognized in AOCI on Derivatives Amount of Pre-tax Gain or (Loss) Reclassified from AOCI into Income Amount of Pre-tax Gain or (Loss) Recognized in Income on Derivatives (Dollars in thousands) Derivative Contracts $ (1,520 ) $ 2,417 $ 3,557 Total $ (1,520 ) $ 2,417 $ 3,557 |
Business Segments
Business Segments | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
Business Segments | NOTE 5 - BUSINESS SEGMENTS The North American and European businesses represent separate operating segments in view of significantly different markets, customers and products in each of these regions. Within each of these regions, markets, customers, products and production processes are similar and production can be transferred between production facilities. Moreover, our business within each region leverages common systems, processes and infrastructure. Accordingly, North America and Europe comprise the Company’s reportable segments. (Dollars in thousands) Net Sales Income from Operations Three Months Ended September 30, 2020 September 30, 2019 September 30, 2020 September 30, 2019 North America $ 166,662 $ 188,089 $ 16,113 $ (4,440 ) Europe 150,441 163,925 3,125 4,197 $ 317,103 $ 352,014 $ 19,238 $ (243 ) (Dollars in thousands) Depreciation and Amortization Capital Expenditures Three Months Ended September 30, 2020 September 30, 2019 September 30, 2020 September 30, 2019 North America $ 8,742 $ 15,432 $ 6,673 $ 5,425 Europe 16,076 15,396 4,158 13,494 $ 24,818 $ 30,828 $ 10,831 $ 18,919 (Dollars in thousands) Net Sales Income from Operations Nine Months Ended September 30, 2020 September 30, 2019 September 30, 2020 September 30, 2019 North America $ 381,129 $ 553,607 $ 2,430 $ 13,586 Europe 381,921 508,599 (200,324 ) 28,841 $ 763,050 $ 1,062,206 $ (197,894 ) $ 42,427 (Dollars in thousands) Depreciation and Amortization Capital Expenditures Nine Months Ended September 30, 2020 September 30, 2019 September 30, 2020 September 30, 2019 North America $ 25,967 $ 31,248 $ 19,109 $ 15,988 Europe 47,167 46,252 14,483 31,596 $ 73,134 $ 77,500 $ 33,592 $ 47,584 (Dollars in thousands) Property, Plant and Equipment, net Goodwill and Intangible Assets September 30, 2020 December 31, 2019 September 30, 2020 December 31, 2019 North America $ 214,656 $ 237,372 $ — $ — Europe 292,381 291,910 112,341 321,910 $ 507,037 $ 529,282 $ 112,341 $ 321,910 (Dollars in thousands) Total Assets September 30, 2020 December 31, 2019 North America $ 433,645 $ 484,689 Europe 645,366 827,178 $ 1,079,011 $ 1,311,867 Geographic information Net sales by manufacturing geographic location are as follows: Three Months Ended Nine Months Ended September 30, 2020 September 30, 2019 September 30, 2020 September 30, 2019 (Dollars in thousands) Net sales: U.S. $ 5,094 $ 26,916 $ 24,890 $ 81,638 Mexico 161,568 161,173 356,239 471,969 Germany 58,413 59,548 142,177 180,785 Poland 92,028 104,377 239,744 327,814 Consolidated net sales $ 317,103 $ 352,014 $ 763,050 $ 1,062,206 |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories | NOTE 6 - INVENTORIES September 30, 2020 December 31, 2019 (Dollars in thousands) Raw materials $ 32,536 $ 44,245 Work in process 40,459 40,344 Finished goods 68,292 83,881 Inventories, net $ 141,287 $ 168,470 Service wheel and supplies inventory included in other non-current assets in the condensed consolidated balance sheets totaled $10.8 million and $10.6 million at September 30, 2020 and December 31, 2019, respectively. |
Property, Plant and Equipment
Property, Plant and Equipment | 9 Months Ended |
Sep. 30, 2020 | |
Property Plant And Equipment [Abstract] | |
Property, Plant and Equipment | NOTE 7 - PROPERTY, PLANT AND EQUIPMENT September 30, 2020 December 31, 2019 (Dollars in thousands) Land and buildings $ 168,758 $ 158,907 Machinery and equipment 829,983 856,961 Leasehold improvements and others 11,176 12,173 Construction in progress 44,045 30,179 1,053,962 1,058,220 Accumulated depreciation (546,925 ) (528,938 ) Property, plant and equipment, net $ 507,037 $ 529,282 Depreciation expense for the three and nine months ended September 30, 2020 was $18.3 million and $54.4 million, respectively. Depreciation expense for the three and nine months ended September 30, 2019 was $24.2 million and $57.4 million, respectively. Depreciation expense for the three months ended September 30, 2019 included accelerated depreciation of $7.6 million related to excess equipment arising from the plan to reduce production at our Fayetteville, Arkansas manufacturing facility (refer to Note 19, “Restructuring”). |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 9 Months Ended |
Sep. 30, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | NOTE 8 - GOODWILL AND OTHER INTANGIBLE ASSETS At March 31, 2020, the impact of COVID-19 and uncertainty with respect to the economic effects of the pandemic had introduced significant volatility in the financial markets and was having, and continues to have, a widespread adverse effect on the automotive industry, including reductions in both consumer demand and OEM automotive production. In response to the COVID-19 pandemic, our key customers temporarily closed nearly all their production facilities in Europe and North America (our primary markets) during the quarter ended March 31, 2020. As a result, we concluded that an interim test of our goodwill was required as of March 31, 2020. More specifically, the Company concluded that the following events and circumstances, in the aggregate, indicated that it was more likely than not that the carrying value of our European reporting unit exceeded its fair value: (1) our European reporting unit’s carrying value was effectively set to fair value at December 31, 2019, due to the $102.2 million impairment charges to goodwill and indefinite-lived intangibles, (2) lower forecasted 2020 industry production volumes for Western and Central Europe, including those for our primary European customers, due to OEM shutdowns to mitigate COVID-19 spread and subsequent reduced production levels over the remainder of the year, as compared to our prior production forecasts (including estimates used in our 2019 assessment) and (3) the volatility in financial markets that has both increased European interest rates due to rising credit spreads and risk premiums and lowered median European automotive market multiples. Based on the results of our quantitative analysis, we recognized a non-cash goodwill impairment charge equal to the remaining goodwill balance of $182.6 million since the carrying value exceeded the fair value of the European reporting unit by more than the amount of the goodwill balance at March 31, 2020. we recognized a non-cash impairment charge of $11.0 million related to our aftermarket trade name indefinite-lived intangible asset which was primarily attributable to a further decline in forecasted aftermarket revenues and a decline in associated profitability. Total impairment charges of $193.6 million were recognized as a separate charge at March 31, 2020 and included in income (loss) from operations. We utilized both an income and a market approach, weighted 75 percent and 25 percent respectively, to determine the fair value of the European reporting unit as part of our goodwill impairment assessment. The income approach is based on projected debt-free cash flow, which is discounted to the present value using discount factors that consider the timing and risk of cash flows. The discount rate used is the weighted average of an estimated cost of equity and of debt (“weighted average cost of capital”). The weighted average cost of capital is adjusted as necessary to reflect risk associated with the business of the European reporting unit. Financial projections are based on estimated production volumes, product prices and expenses, including raw material cost, wages, energy and other expenses. Other significant assumptions include terminal value cash flow and growth rates, future capital expenditures and changes in future working capital requirements. The market approach is based on the observed ratios of enterprise value to earnings before interest, taxes, depreciation and amortization (EBITDA) of comparable, publicly traded companies. The market approach fair value is determined by multiplying historical and anticipated financial metrics of the European reporting unit by the EBITDA pricing multiples derived from comparable, publicly traded companies. At March 31, 2020, we determined that the carrying value of the European reporting unit exceeded its fair value by an amount greater than the remaining goodwill balance. The decline in fair value was primarily due to significantly lower market multiples and increased discount rates, as well as further declines in forecasted industry production volumes in Western and Central Europe as a result of the COVID-19 pandemic and consequent economic instability. Forecasted revenues, EBITDA and cash flow for the European reporting unit also declined as compared to the prior year long-range plan due to lower forecasted industry production volumes which adversely impacted fair value under both the income and market approaches. In determining the fair value, the Company weighted the income and market approaches, 75 percent and 25 percent, respectively. Significant assumptions used under the income approach included a weighted average cost of capital (WACC) of 12.0 percent and a long-term growth rate of 1.5 percent, as compared to 10.0 percent and 2.0 percent, respectively, used in the 2019 assessment. In determining the WACC, management considered the level of risk inherent in the cash flow projections and current market conditions, including the significant increase in credit spreads and systemic market and Company specific risk premiums. The decline in the fair value under the market approach is attributable to the decline in the average EBITDA market multiple ( 4.9X EBITDA in 2020, 5.7X EBITDA in 2019) and lower forecasted EBITDA, as compared to the 2019 assessment . The use of these unobservable inputs results in classification of the fair value estimate as a Level 3 measurement in the fair value hierarchy. A considerable amount of management judgment and assumptions are required in performing the quantitative impairment test, principally related to determining the fair value of the reporting unit. While the Company believes its judgments and assumptions are reasonable, different assumptions could change the estimated fair value. Following is a summary of the Company’s finite-lived and indefinite-lived intangible assets and goodwill as of September 30, 2020 and December 31, 2019. As of September 30, 2020 Gross Carrying Amount Impairment Accumulated Amortization Currency Translation Net Carrying Amount Remaining Weighted Average Amortization Period (Dollars in thousands) Brand name $ 9,000 $ — $ (6,136 ) $ 269 $ 3,133 2-3 Technology 15,000 — (10,226 ) 441 5,215 1-3 Customer relationships 167,000 — (68,940 ) 5,933 103,993 3-8 Total finite 191,000 — (85,302 ) 6,643 112,341 Trade names 14,000 (13,772 ) — (228 ) — Indefinite Total intangibles $ 205,000 $ (13,772 ) $ (85,302 ) $ 6,415 $ 112,341 Nine Months Ended September 30, 2020 Beginning Balance Ending Balance Gross Accumulated Impairment Net Balance Impairment Currency Translation Gross Accumulated Impairment Net Balance (Dollars in thousands) Goodwill $ 284,337 $ (99,505 ) $ 184,832 $ (182,528 ) $ (2,304 ) $ 282,033 $ (282,033 ) $ — As of December 31, 2019 Gross Carrying Amount Impairment Accumulated Amortization Currency Translation Net Carrying Amount Remaining Weighted Average Amortization Period (Dollars in thousands) Brand name $ 9,000 $ — $ (4,778 ) $ 110 $ 4,332 3-4 Technology 15,000 — (7,963 ) 183 7,220 2-4 Customer relationships 167,000 — (53,681 ) 954 114,273 4-9 Total finite 191,000 — (66,422 ) 1,247 125,825 Trade names 14,000 (2,733 ) — (14 ) 11,253 Indefinite Total intangibles $ 205,000 $ (2,733 ) $ (66,422 ) $ 1,233 $ 137,078 Year Ended December 31, 2019 Beginning Balance Ending Balance Gross Accumulated Impairment Net Balance Impairment Currency Translation Gross Accumulated Impairment Net Balance (Dollars in thousands) Goodwill $ 291,434 $ — $ 291,434 $ (99,505 ) $ (7,097 ) $ 284,337 $ (99,505 ) $ 184,832 Amortization expense for these intangible assets was $6.5 million and $6.6 million |
Debt
Debt | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Debt | NOTE 9 – DEBT A summary of long-term debt and the related weighted average interest rates is shown below: September 30, 2020 (Dollars in Thousands) Debt Instrument Total Debt Debt Issuance Costs (1) Total Debt, Net Weighted Average Interest Rate Term Loan Facility $ 349,200 $ (7,790 ) $ 341,410 4.1 % 6.00% Senior Notes due 2025 254,904 (4,670 ) 250,234 6.0 % European CapEx Loans 23,410 — 23,410 2.4 % Finance Leases 2,686 — 2,686 3.0 % $ 630,200 $ (12,460 ) 617,740 Less: Current portion (6,034 ) Long-term debt $ 611,706 December 31, 2019 (Dollars in Thousands) Debt Instrument Total Debt Debt Issuance Costs (1) Total Debt, Net Weighted Average Interest Rate Term Loan Facility $ 371,800 $ (10,192 ) $ 361,608 5.7 % 6.00% Senior Notes due 2025 243,074 (5,408 ) 237,666 6.0 % European CapEx Loan 12,693 — 12,693 2.2 % Finance Leases 3,068 — 3,068 2.9 % $ 630,635 $ (15,600 ) 615,035 Less: Current portion (4,010 ) Long-term debt $ 611,025 (1) Unamortized portion Senior Notes On June 15, 2017, the Company issued €250.0 million aggregate principal amount of 6.00 percent Senior Notes (“Notes”) due June 15, 2025. Interest on the Notes is payable semiannually, on June 15 and December 15. The Company may redeem the Notes, in whole or in part, on or after June 15, 2020 at redemption prices of 103.0 percent and 101.5 percent of the principal amount thereof, if the redemption occurs during the 12-month period beginning June 15, 2020 or June 15, 2021, respectively, and a redemption price of 100 percent of the principal amount thereof on or after June 15, 2022, in each case plus accrued and unpaid interest to, but not including, the applicable redemption date. If we experience a change of control or sell certain assets, the Company may be required to offer to purchase the Notes from the holders. The Notes are senior unsecured obligations ranking equally in right of payment with all of its existing and future senior indebtedness and senior in right of payment to any subordinated indebtedness. The Notes are effectively subordinated in right of payment to the existing and future secured indebtedness of the Company, including the Senior Secured Credit Facilities (as defined below), to the extent of the assets securing such indebtedness. During the second and third quarters of 2019, the Company opportunistically purchased Notes on the open market with face values of $22.4 million (20.0 million Euro) and $7.8 million (7.0 million Euro) for $19.4 million $6.6 million, respectively. The carrying values associated with the Note purchases in the second and third quarters of 2019, net of allocable debt issuance costs, were $21.8 million and $7.6 million, respectively, resulting in gains of $2.4 million and $1.0 million, respectively, which were included in other income. During the fourth quarter of 2019, the Company purchased additional Notes on the open market with a face value of $6.6 million (6.0 million Euro) for $6.3 million. The associated carrying value of the Notes, net of allocable debt issuance costs, was $6.5 million, resulting in a net gain of $0.3 million for the fourth quarter, which was included in other income. Guarantee The Notes are unconditionally guaranteed by all material wholly-owned direct and indirect domestic restricted subsidiaries of the Company (the “Subsidiary Guarantors”), with customary exceptions including, among other things, where providing such guarantees is not permitted by law, regulation or contract, or would result in adverse tax consequences. Covenants Subject to certain exceptions, the indenture governing the Notes contains restrictive covenants that, among other things, limit the ability of the Company and the Subsidiary Guarantors to: (i) incur additional indebtedness or issue certain preferred stock; (ii) pay dividends on, or make distributions in respect of, their capital stock; (iii) make certain investments or other restricted payments; (iv) sell certain assets or issue capital stock of restricted subsidiaries; (v) create liens; (vi) merge, consolidate, transfer or dispose of substantially all of their assets; and (vii) engage in certain transactions with affiliates. These covenants are subject to several important limitations and exceptions that are described in the indenture. The indenture provides for customary events of default that include, among other things (subject in certain cases to customary grace and cure periods): (i) nonpayment of principal, premium, if any, and interest, when due; (ii) failure for 60 days to comply with any obligations, covenants or agreements in the indenture after receipt of written notice from the Bank of New York Mellon, London Branch (“the Trustee”) or holders of at least 30 percent in principal amount of the then outstanding Notes of such failure (other than defaults referred to in the foregoing clause (i)); (iii) default under any mortgage, indenture or instrument for money borrowed by the Company or certain of its subsidiaries, (iv) a failure to pay certain judgments; and (iv) certain events of bankruptcy and insolvency. If an event of default occurs and is continuing, the Bank of New York Mellon, London Branch (“the Trustee”) or holders of at least 30 percent in principal amount of the then outstanding Notes may declare the principal, premium, if any, and accrued and unpaid interest on all the Notes to be due and payable. These events of default are subject to several important qualifications, limitations and exceptions that are described in the indenture. As of September 30, 2020, the Company was in compliance with all covenants under the indenture governing the Notes. Senior Secured Credit Facilities On March 22, 2017, the Company entered into a senior secured credit agreement (“Credit Agreement”) with Citibank, N.A, as Administrative Agent, Collateral Agent and Issuing Bank, JP Morgan Chase N.A., Royal Bank of Canada and Deutsche Bank A.G. New York Branch as Joint Lead Arrangers and Joint Book Runners, and the other lenders party thereto (collectively, the “Lenders”). The Credit Agreement consisted of a $400.0 million senior secured term loan facility (“Term Loan Facility”), which matures on May 23, 2024, and a $160.0 million revolving credit facility maturing on May 23, 2022 (“Revolving Credit Facility” and, together with the Term Loan Facility, the USD Senior Secured Credit Facilities (“USD SSCF”)). Borrowings under the Term Loan Facility will bear interest at a rate equal to, at the Company’s option, either (a) LIBOR for the relevant interest period, adjusted for statutory requirements, subject to a floor of 0.00 percent per annum, plus an applicable rate of 4.00 percent or (b) a base rate, subject to a floor of 2.00 percent per annum, equal to the highest of (1) the rate of interest in effect as publicly announced by the administrative agent as its prime rate, (2) the federal funds rate plus 0.50 percent and (3) LIBOR for an interest period of one month plus 1.00 percent, in each case, plus an applicable rate of 3.00 Borrowings under the Revolving Credit Facility bear interest at a rate equal to, at the Company’s option, either (a) LIBOR for the relevant interest period, with a floor of 0.00 percent per annum, plus the applicable rate or (b) a base rate, with a floor of 0.00 percent, equal to the highest of (1) the rate of interest in effect as publicly announced by the administrative agent as its prime rate, (2) the federal funds effective rate plus 0.50 percent and (3) LIBOR for an interest period of one month plus 1.00 percent, in each case, plus the applicable rate. The applicable rates for borrowings under the Revolving Credit Facility and commitment fees for unused commitments under the Revolving Credit Facility are based upon the First Lien Net Leverage Ratio effective for the preceding quarter , with LIBOR applicable rates ranging between 3.50 percent and 3.00 percent, currently percent , base rate applicable rates between 2.50 percent and 2.00 percent , currently percent and commitment fees between 0.50 percent and 0.25 percent , currently percent . Commitment fees are included in interest expense. As of September 30, 2020, the Company had repaid $50.8 million under the Term Loan Facility resulting in a balance of $349.2 million. In addition, the Company had no borrowings outstanding under the Revolving Credit Facility, outstanding letters of credit of $4.8 million and available unused commitments under this facility of $155.2 million as of September 30, 2020. Guarantees and Collateral Security Our obligations under the Credit Agreement are unconditionally guaranteed by the Subsidiary Guarantors, with customary exceptions including, among other things, where providing such guarantees is not permitted by law, regulation or contract or would result in adverse tax consequences. The guarantees of such obligations, will be secured, subject to permitted liens and other exceptions, by substantially all of our assets and the Subsidiary Guarantors’ assets, including but not limited to: (i) a perfected pledge of all of the capital stock issued by each of the Subsidiary Guarantors (subject to certain exceptions) and up to 65 percent of the capital stock issued by each direct wholly-owned foreign restricted subsidiary of the Company (subject to certain exceptions) and (ii) perfected security interests in and mortgages on substantially all tangible and intangible personal property and material fee-owned real property of the Company and the Subsidiary Guarantors (subject to certain exceptions and exclusions). Covenants The Credit Agreement contains a number of restrictive covenants that, among other things, restrict, subject to certain exceptions, our ability to incur additional indebtedness and guarantee indebtedness, create or incur liens, engage in mergers or consolidations, sell, transfer or otherwise dispose of assets, make investments, acquisitions, loans or advances, pay dividends, distributions or other restricted payments, or repurchase our capital stock, prepay, redeem, or repurchase any subordinated indebtedness, enter into agreements which limit our ability to incur liens on our assets or that restrict the ability of restricted subsidiaries to pay dividends or make other restricted payments to us, and enter into certain transactions with our affiliates, and, solely with respect to the Revolving Credit Facility, requires a Total Net Leverage Ratio (calculated as defined in the Credit Agreement) of not more than 4.5 to 1.0 as of each fiscal quarter-end when outstanding borrowings, together with undrawn letters of credit exceeding $20 million, under the Revolving Credit Facility exceed 35 of the $160 million commitment amount. In addition, the Credit Agreement contains customary default provisions, representations and warranties and other covenants. The Credit Agreement also contains a provision permitting the Lenders to accelerate the repayment of all loans outstanding under the Senior Secured Credit Facilities during an event of default. As of September 30, 2020, the Company was in compliance with all covenants under the Credit Agreement. European Debt In connection with the acquisition of Uniwheels, AG, the Company assumed $70.7 million of outstanding debt. At September 30, 2020, $11.0 million of the assumed debt remained outstanding and bears interest at 2.2 percent. During the second quarter of 2019, the Company amended its European Revolving Credit Facility (“EUR SSCF”), increasing the available borrowing limit from €30.0 million to €45.0 million and extending the term to May 22, 2022. On January 31, 2020, the available borrowing limit of the EUR SSCF was increased from €45.0 million to €60.0 million. All other terms of the EUR SSCF remained unchanged. At September 30, 2020, the Company had no borrowings outstanding, outstanding letters of credit of $0.5 million (€0.4 million) and available unused commitments under this facility of $70.0 million (€59.6 million). The EUR SSCF bears interest at Euribor (with a floor of zero) plus a margin (ranging from 1.55 percent to 3.0 percent based on the net debt leverage ratio of Superior Industries Europe AG and its wholly owned subsidiaries, collectively “Superior Europe AG”), currently 1.55 percent. The annual commitment fee for unused commitments (ranging from 0.50 percent to 1.05 percent based on the net debt leverage ratio of Superior Europe AG), is currently 0.50 percent per annum. In addition, a management fee is assessed equal to 0.07 percent of borrowings outstanding at each month end. The commitment and management fees are both included in interest expense. Superior Europe AG has pledged substantially all of its assets, including land and buildings, receivables, inventory, and other moveable assets (other than collateral associated with equipment loans) as collateral under the EUR SSCF. The EUR SSCF is subject to a number of restrictive covenants that, among other things, restrict, subject to certain exceptions, the ability of Superior Europe AG to incur additional indebtedness and guarantee indebtedness, create or incur liens, engage in mergers or consolidations, sell, transfer or otherwise dispose of assets, make investments, acquisitions, loans or advances, pay dividends or distributions, or repurchase our capital stock, prepay, redeem, or repurchase any subordinated indebtedness, and enter into agreements which limit our ability to incur liens on our assets. At September 30 , 2020 , Superior Europe AG was in compliance with all covenants under the EUR SSCF . During the fourth quarter of 2019, the Company entered into new equipment loan agreements totaling $13.4 million (€12.0 million) which bear interest at 2.67 percent and mature on September 30, 2027. Interest and principal repayments are due quarterly. The loans are secured with liens on the financed equipment and are subject to covenants that, among other things, include a material adverse change default provision pursuant to which the lender could accelerate the loan maturity, as well as a provision that December of 2020 |
Redeemable Preferred Stock
Redeemable Preferred Stock | 9 Months Ended |
Sep. 30, 2020 | |
Text Block [Abstract] | |
Redeemable Preferred Stock | NOTE 10 - REDEEMABLE PREFERRED STOCK During 2017, we issued 150,000 shares of Series A (140,202 shares) and Series B (9,798 shares) Perpetual Convertible Preferred Stock, par value $0.01 per share to TPG Growth III Sidewall, L.P. (“TPG”) for an aggregate purchase price of $150.0 million. On August 30, 2017, the Series B shares were converted into Series A redeemable preferred stock, the “redeemable preferred stock,” after approval by our shareholders. The redeemable preferred stock has an initial stated value of $1,000 per share, par value of $0.01 per share and liquidation preference over common stock. The redeemable preferred stock is convertible into shares of our common stock equal to the number of shares determined by dividing the sum of the stated value and any accrued and unpaid dividends by the conversion price of $28.162. The redeemable preferred stock accrues dividends at a rate of 9 percent per annum, payable at our election either in-kind or in cash and is also entitled to participate in dividends on common stock in an amount equal to that which would have been due had the shares been converted into common stock. We may mandate conversion of the redeemable preferred stock if the price of the common stock exceeds $84.49. TPG may redeem the shares upon the occurrence of any of the following events (referred to as a “redemption event”): a change in control, recapitalization, merger, sale of substantially all of the Company’s assets, liquidation or delisting of the Company’s common stock. In addition, as originally issued, TPG has the right, at its option, to unconditionally redeem the shares at any time after May 23, 2024, subsequently extended to September 14, 2025 (the “redemption date”). We may, at our option, redeem in whole at any time all of the shares of redeemable preferred stock outstanding. At redemption by either party, the redemption value will be the greater of two Since the redeemable preferred stock may be redeemed at the option of the holder, but is not mandatorily redeemable, the redeemable preferred stock has been classified as mezzanine equity and initially recognized at fair value of $150.0 million (the proceeds on the date of issuance) less issuance costs of $3.7 million, resulting in an initial value of $146.3 million. This amount was further reduced by $10.9 million assigned to the embedded derivative liability at date of issuance, resulting in an adjusted initial value of $135.5 million. The difference between the adjusted initial value of $135.5 million and the redemption value of $300 million was being accreted over the seven-year On November 7, 2018, the Company filed a Certificate of Correction to the Certificate of Designations for the preferred stock, which became effective upon filing and corrected the redemption date to September 14, 2025. This resulted in a modification of the redeemable preferred stock. As a result of the modification, the carrying value of the redeemable preferred stock decreased $17.2 million (which was credited to retained earnings, treated as a deemed dividend and is added back to compute earnings per share) and the period for accretion of the carrying value to the redemption value has been extended to September 14, 2025. The accretion has been adjusted to amortize the excess of the redemption value over the carrying value over the period through September 14, 2025. The accumulated accretion net of the modification adjustment as of September 30, 2020 is $39.1 million resulting in an adjusted redeemable preferred stock balance of $174.6 million. |
European Non-Controlling Redeem
European Non-Controlling Redeemable Equity | 9 Months Ended |
Sep. 30, 2020 | |
Noncontrolling Interest [Abstract] | |
European Non-Controlling Redeemable Equity | NOTE 11 – EUROPEAN NON-CONTROLLING REDEEMABLE EQUITY On May 30, 2017, the Company acquired 92.3 percent of the outstanding shares of Uniwheels, Inc. Subsequently, the Company commenced a delisting and associated tender offer for the remaining shares. On January 17, 2018, the Company entered into a Domination and Profit and Loss Transfer agreement (“DPLTA”) retroactively effective as of January 1, 2018 pursuant to which we offered to purchase the remaining outstanding shares at €62.18. This price may be subject to change based on appraisal proceedings initiated by the minority shareholders which have not yet been concluded. The Company must also pay an annual dividend of €3.23 as long as the DPLTA is in effect. For any shares tendered prior to the annual dividend payment, we must pay interest at a statutory rate, currently 4.12 percent, in place of the dividend. As a result, non-controlling interests with a carrying value of $51.9 million were reclassified from stockholders’ equity to mezzanine equity as of January 1, 2018 because non-controlling interests with redemption rights (not within the Company’s control) are considered redeemable and must be classified outside shareholders’ equity. As a result of purchases pursuant to the tender offer and the DPLTA, the Company has increased its ownership to 99.9 percent as of September 30, 2020. In addition, the carrying value of the non-controlling interests must be adjusted to redemption value since they are currently redeemable. The following table summarizes the European non-controlling redeemable equity activity through the period ended September 30, 2020 (in thousands): Balance at December 31, 2018 $ 13,849 Dividends accrued 566 Dividends paid (848 ) Translation adjustment (361 ) Purchase of shares (6,681 ) Balance at December 31, 2019 6,525 Dividends accrued 152 Dividends paid (45 ) Translation adjustment (71 ) Purchase of shares (4,981 ) Balance at September 30, 2020 $ 1,580 |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | NOTE 12 – EARNINGS PER SHARE Basic earnings per share is computed by dividing net income (loss), after deducting preferred dividends and accretion and European non-controlling redeemable equity dividends, by the weighted average number of common shares outstanding. For purposes of calculating diluted earnings per share, the weighted average shares outstanding includes the dilutive effect of outstanding stock options and time and performance based restricted stock units under the treasury stock method. The redeemable preferred shares discussed in Note 10, “Redeemable Preferred Stock” have not been included in the diluted earnings per share because the conversion would be anti-dilutive for the three and nine months ended September 30, 2020 and 2019. Three Months Ended Nine Months Ended September 30, 2020 September 30, 2019 September 30, 2020 September 30, 2019 (Dollars in thousands, except per share amounts) Basic Earnings Per Share: Net income (loss) $ 11,146 $ (6,631 ) $ (222,154 ) $ 2,589 Less: Redeemable preferred stock dividends and accretion (8,056 ) (7,587 ) (23,811 ) (23,275 ) Less: European non-controlling redeemable equity dividend (106 ) (113 ) (152 ) (496 ) Basic numerator $ 2,984 $ (14,331 ) $ (246,117 ) $ (21,182 ) Basic earnings (loss) per share $ 0.12 $ (0.57 ) $ (9.66 ) $ (0.84 ) Weighted average shares outstanding – Basic 25,592 25,127 25,466 25,089 Diluted Earnings Per Share: Net income (loss) $ 11,146 $ (6,631 ) $ (222,154 ) $ 2,589 Less: Redeemable preferred stock dividends and accretion (8,056 ) (7,587 ) (23,811 ) (23,275 ) Less: European non-controlling redeemable equity dividend (106 ) (113 ) (152 ) (496 ) Diluted numerator $ 2,984 $ (14,331 ) $ (246,117 ) $ (21,182 ) Diluted earnings (loss) per share $ 0.12 $ (0.57 ) $ (9.66 ) $ (0.84 ) Weighted average shares outstanding – Basic 25,592 25,127 25,466 25,089 Dilutive effect of common share equivalents 118 — — — Weighted average shares outstanding – Diluted 25,710 25,127 25,466 25,089 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 13 - INCOME TAXES The estimated annual effective tax rate is forecasted quarterly using actual historical information and forward-looking estimates and applied to year-to-date ordinary income. The tax effects of unusual or infrequently occurring items, including changes in judgment about valuation allowances, settlements with taxing authorities and effects of changes in tax laws or rates, are reported in the interim period in which they occur. The income tax benefit for the three and nine months ended September 30, 2020, was $3.9 and $11.1 million, resulting in an effective income tax rate of (53.8) percent and 4.8 percent, respectively. The effective income tax rate for the three months ending September 30, 2020 differs from the statutory rate primarily due to the mix of earnings among tax jurisdictions, and recognition of a valuation allowance on non-deductible interest. The effective income tax rate for the nine months ending September 30, 2020 differs from the statutory rate primarily due to the impairment of goodwill for which there is no corresponding tax benefit, the mix of earnings among tax jurisdictions, and recognition of a valuation allowance on non-deductible interest. The income tax benefit and provision for the three and nine months ended September 30, 2019 was $4.8 and $7.7 million, resulting in an effective income tax rate of 41.9 percent and 75.0 percent, respectively. The effective tax rate was higher than the statutory rate primarily due to the United States taxation of foreign earnings under the Global Intangible Low-Tax Income (“GILTI”) provisions, and the recognition of a valuation allowance on non-deductible interest, partially offset by a benefit due to the mix of earnings among tax jurisdictions. |
Leases
Leases | 9 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Leases | NOTE 14 - LEASES The Company determines whether an arrangement is or contains a lease at the inception of the arrangement. Operating leases are included in other non-current assets, accrued expenses and other non-current liabilities in our condensed consolidated balance sheets. Finance leases are included in property, plant and equipment, net, short-term debt and long-term debt (less current portion) in our condensed consolidated balance sheets. Right-of-use (“ROU”) assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at the commencement date based on the present value of the lease payments over the lease term. Since we generally do not have access to the interest rate implicit in the lease, the Company uses our incremental borrowing rate (for fully collateralized debt) at the inception of the lease in determining the present value of the lease payments. The implicit rate is, however, used where readily available. Lease expense under operating leases is recognized on a straight-line basis over the term of the lease. Certain of our leases contain both lease and non-lease components, which are accounted for separately. The Company has operating and finance leases for office facilities, a data center and certain equipment. The remaining terms of our leases range from over one year to just under nine years. Certain leases include options to extend the lease term for up to ten years, as well as options to terminate which have been excluded from the term of the lease since exercise of these options is not reasonably certain. Lease expense and cash flow for the three and nine months ended September 30, 2020 and 2019 and operating and finance lease assets and liabilities, average lease term and average discount rate as of September 30, 2020 and December 31, 2019 are as follows: Three Months Ended Nine Months Ended September 30, 2020 September 30, 2019 September 30, 2020 September 30, 2019 Lease Expense Finance lease expense: Amortization of right-of-use assets $ 615 $ 548 $ 906 $ 1,551 Interest on lease liabilities 43 34 63 65 Operating lease expense 1,699 846 2,534 2,560 Total lease expense $ 2,357 $ 1,428 $ 3,503 $ 4,176 Cash Flow Components Cash paid for amounts included in the measurement of lease liabilities: Operating cash outflows from finance leases $ 43 $ 34 $ 63 $ 65 Operating cash outflows from operating leases 1,818 821 2,692 2,484 Financing cash outflows from finance leases 467 381 723 1,035 Right-of-use assets obtained in exchange for finance lease liabilities, net of terminations and disposals 180 1,292 252 1,803 Right-of-use assets obtained in exchange for operating lease liabilities, net of terminations and disposals 422 12 637 18,353 September 30, 2020 December 31, 2019 Balance Sheet Information Operating leases: Other non-current assets $ 14,087 $ 15,201 Accrued liabilities $ (2,926 ) $ (2,949 ) Other non-current liabilities (12,120 ) (13,282 ) Total operating lease liabilities $ (15,046 ) $ (16,231 ) Finance leases: Property and equipment gross $ 5,299 $ 4,821 Accumulated depreciation (3,024 ) (2,118 ) Property and equipment, net $ 2,275 $ 2,703 Current portion of long-term debt $ (893 ) $ (1,023 ) Long-term debt (1,793 ) (2,045 ) Total finance lease liabilities $ (2,686 ) $ (3,068 ) Lease Term and Discount Rates Weighted-average remaining lease term - finance leases (years) 3.9 4.1 Weighted-average remaining lease term - operating leases (years) 6.1 6.4 Weighted-average discount rate - finance leases 3.0 % 2.9 % Weighted-average discount rate - operating leases 3.8 % 3.9 % Summarized future minimum payments under our leases as of September 30, 2020 are as follows: September 30, 2020 Finance Leases Operating Leases Lease Maturities (in thousands) Three remaining months of 2020 $ 151 $ 1,798 2021 1,083 3,216 2022 771 2,672 2023 364 2,316 2024 122 2,094 Thereafter 432 4,958 Total 2,923 17,054 Less: Imputed interest (237 ) (2,008 ) Total lease liabilities, net of interest $ 2,686 $ 15,046 |
Retirement Plans
Retirement Plans | 9 Months Ended |
Sep. 30, 2020 | |
Compensation And Retirement Disclosure [Abstract] | |
Retirement Plans | NOTE 15 – RETIREMENT PLANS We have an unfunded salary continuation plan covering certain directors, officers and other key members of management. Subject to certain vesting requirements, the plan provides for a benefit based on final average compensation, which becomes payable on the employee’s death or upon attaining age 65, if retired. The plan was closed to new participants effective February 3, 2011. For the nine months ended September 30, 2020, payments to retirees or their beneficiaries totaled approximately $1.1 million. We presently anticipate benefit payments in 2020 to total approximately $1.3 million. The following table summarizes the components of net periodic pension cost for the three and nine months ended September 30, 2020 and 2019. Three Months Ended Nine Months Ended September 30, 2020 September 30, 2019 September 30, 2020 September 30, 2019 (Dollars in thousands) Interest cost $ 251 $ 286 $ 753 $ 858 Net amortization 72 52 216 156 Net periodic pension cost $ 323 $ 338 $ 969 $ 1,014 |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | NOTE 16 - STOCK-BASED COMPENSATION Equity Incentive Plan Our 2018 Equity Incentive Plan (the “Plan”) was approved by stockholders in May 2018. The Plan authorizes us to issue up to 4.35 million shares of common stock, along with non-qualified stock options, stock appreciation rights, restricted stock and performance units to our officers, key employees, non-employee directors and consultants. At September 30, 2020, there were 0.6 million shares available for future grants under this Plan. No more than 1.2 million shares may be used under the Plan as “full value” awards, which include restricted stock and performance units. It is our policy to issue shares from authorized but not issued shares upon the exercise of stock options. Under the terms of the Plan, each year eligible participants are granted time value restricted stock units (“RSUs”), vesting ratably over a three-year three-year Other Awards On May 16, 2019 the Company granted the following equity awards to our then new President and Chief Executive Officer in connection with the 2019 Inducement Grant Plan (the “Inducement Plan”): (i) an initial award consisting of (a) 666,667 PSUs at target, vesting in three approximately equal installments, to the extent the performance metrics are satisfied, during each of three performance periods and (b) 333,333 RSUs, vesting in approximately equal installments on February 28, 2020, 2021 and 2022; (ii) a 2019-2021 PSU grant, with the target number of 316,832 PSUs, which will vest to the extent the performance metrics are satisfied; and (iii) a 2019 RSU grant of 158,416 RSUs, vesting in approximately equal installments on February 28, 2020, 2021 and 2022. The PSU awards may be earned at up to 200 percent of target depending on the level of achievement of the performance metrics. Restricted stock unit and restricted performance stock unit activity for the nine months ended September 30, 2020 is summarized in the following table: Equity Incentive Awards Restricted Stock Units Weighted Average Grant Date Fair Value Performance Shares Weighted Average Grant Date Fair Value Options Weighted Average Exercise Price Balance at December 31, 2019 1,047,256 $ 5.39 1,548,793 $ 7.17 50,250 $ 18.86 Granted 634,317 2.87 948,636 3.25 — — Settled (401,723 ) 6.14 (245,713 ) 5.05 — — Forfeited or expired (195,540 ) 4.27 (334,141 ) 7.44 (26,250 ) 17.46 Balance at September 30, 2020 1,084,310 $ 3.84 1,917,575 $ 5.28 24,000 $ 20.39 Vested or expected to vest at September 30, 2020 981,873 $ 3.82 323,862 $ 7.79 24,000 $ 20.39 Stock-based compensation expense was $0.5 million and $1.8 million for the three months ended September 30, 2020 and 2019, respectively. Stock-based compensation expense was $1.2 million and $3.7 million for the nine months ended September 30, 2020 and 2019, respectively. The lower expense in 2020 (for the three months and nine months ended September 30, 2020) was primarily due to the reduction of our estimates regarding the achievement of the performance metric, to zero, in light of the global pandemic. Unrecognized stock-based compensation expense related to non-vested awards of $3.7 million is expected to be recognized over a weighted average period of approximately 1.6 years as of September 30, 2020. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 17 – COMMITMENTS AND CONTINGENCIES Purchase Commitments When market conditions warrant, we may enter into purchase commitments to secure the supply of certain commodities used in the manufacture of our products, such as aluminum, natural gas and other raw materials. Prices under our aluminum contracts are based on a market index, the London Mercantile Exchange, and regional premiums for processing, transportation and alloy components which are adjusted quarterly for purchases in the ensuing quarter. Changes in aluminum prices are generally passed through to our OEM customers and adjusted on a quarterly basis. Certain of our purchase agreements include volume commitments; however, any excess commitments are generally negotiated with suppliers and those which have occurred in the past have been carried over to future periods. Contingencies We are party to various legal and environmental proceedings incidental to our business. Certain claims, suits and complaints arising in the ordinary course of business have been filed or are pending against us. Based on facts now known, we believe all such matters are adequately provided for, covered by insurance, are without merit and/or involve such amounts that would not materially adversely affect our consolidated results of operations, cash flows or financial position. |
Receivables Factoring
Receivables Factoring | 9 Months Ended |
Sep. 30, 2020 | |
Receivables [Abstract] | |
Receivables Factoring | NOTE 18 – RECEIVABLES FACTORING The Company sells certain customer trade receivables on a non-recourse basis under factoring arrangements with designated financial institutions. These transactions are accounted for as sales and cash proceeds are included in cash provided by operating activities. Factoring arrangements incorporate customary representations and warranties, including representations as to validity of amounts due, completeness of performance obligations and absence of commercial disputes. During the three months ended September 30, 2020 and 2019, the Company sold trade receivables totaling $169.8 million and $80.6 million, respectively, and incurred factoring fees of $0.4 million and $0.2 million, respectively. During the nine months ended September 30, 2020 and 2019, the Company sold trade receivables totaling $307.4 million and $272.4 million, respectively, and incurred factoring fees of $0.8 million and $0.8 million, respectively. As of September 30, 2020 and December 31, 2019, $101.4 million and $49.6 million, respectively, of receivables had been factored under the arrangements. The collective limit under our factoring arrangements as of September 30, 2020 was $115.9 million. The limit has decreased to $105.9 million as of October 15, 2020 due to a $10 million decrease in North American factoring limit. The collective limit under our factoring arrangements as of December 31, 2019 was $117.3 million. |
Restructuring
Restructuring | 9 Months Ended |
Sep. 30, 2020 | |
Restructuring And Related Activities [Abstract] | |
Restructuring | NOTE 19 – RESTRUCTURING During the quarter ended June 30, 2020, the Company discontinued the manufacture and sale of high performance aftermarket wheels for the automotive racing market segment. The Company incurred a total non-cash charge of $3.4 million, including $2.8 million recorded in cost of sales, comprised of $1.3 million relating to write-downs of certain after-market inventory to salvage value, $1.0 million of employee severance costs and $0.5 million in contract terminations and other costs, as well as a $0.6 million non-cash charge recorded in selling, general and administrative expense related to non-production employee severance costs. During the three-month period ended September 30, 2020, we recognized an additional $0.4 million of severance costs. As of September 30, 2020, $1.5 million of the restructuring severance accrual remains. During the third quarter of 2019, the Company initiated a plan to significantly reduce production and manufacturing operations at its Fayetteville, Arkansas location. As a result, the Company recognized a non-cash charge of $13.0 million in cost of sales, comprised of (1) $7.6 million of accelerated depreciation for excess equipment, (2) $3.2 million relating to the write-down of certain supplies inventory to net salvage value, (3) $1.6 million of employee severance and (4) $0.6 million of accelerated amortization of right of use assets under operating leases. In addition, relocation costs for redeployment of machinery and equipment of $1.8 million were recognized in the fourth quarter of 2019. During the nine months ended September 30, 2020, we recognized additional relocation costs for redeployment of machinery and equipment of $2.3 million and additional other costs of $0.4 million. Additional relocation costs are expected to be incurred over the next three months. As of September 30, 2020, $0.3 million of the restructuring severance accrual remains. |
Nature of Operations and Pres_2
Nature of Operations and Presentation of Condensed Consolidated Financial Statements (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Nature of Operations | Nature of Operations Superior Industries International, Inc.’s (referred herein as the “Company,” “Superior,” or “we” and “our”) principal business is the design and manufacture of aluminum wheels for sale to original equipment manufacturers (OEMs) in North America and Europe and aftermarket distributors in Europe. We employ approximately 7,500 employees, operating in eight manufacturing facilities in North America and Europe with a combined annual manufacturing capacity of approximately 20 million wheels. We are one of the largest suppliers to global OEMs and we believe we are the #1 European aluminum wheel aftermarket manufacturer and supplier. Our OEM aluminum wheels accounted for approximately 92 percent of our sales in the first nine months of 2020 and are primarily sold for factory installation on vehicle models manufactured by BMW (including Mini), Daimler AG Company (Mercedes-Benz, AMG, Smart), FCA, Ford, GM, Honda, Jaguar-Land Rover, Mazda, Mitsubishi, Nissan, PSA, Renault, Subaru, Suzuki, Toyota, VW Group (Volkswagen, Audi, SEAT, Skoda, Porsche, Bentley) and Volvo. We also sell aluminum wheels to the European aftermarket under the brands ATS, RIAL, ALUTEC and ANZIO. North America and Europe represent the principal markets for our products, but we have a global presence and diversified customer base consisting of North American, European and Asian OEMs. We have determined that our North American and European operations should be treated as separate reportable segments as further described in Note 5, “Business Segments.” |
Presentation of Condensed Consolidated Financial Statements | Presentation of Condensed Consolidated Financial Statements The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the Security and Exchange Commission’s (“SEC’s”) requirements for quarterly reports on Form 10-Q and U.S. Generally Accepted Accounting Principles (“GAAP”) and, in our opinion, contain all adjustments, of a normal and recurring nature, which are necessary for fair presentation of (i) the condensed consolidated statements of income (loss) for the three and nine-month periods ended September 30, 2020 and September 30, 2019, (ii) the condensed consolidated statements of comprehensive income (loss) for the three and nine-month periods ended September 30, 2020 and September 30, 2019, (iii) the condensed consolidated balance sheets at September 30, 2020 and December 31, 2019, (iv) the condensed consolidated statements of cash flows for the nine-month periods ended September 30, 2020 and September 30, 2019, and (v) the condensed consolidated statements of shareholders’ equity (deficit) for the three and nine-month periods ended September 30, 2020 and September 30, 2019. This Quarterly Report on Form 10-Q should be read in conjunction with our consolidated financial statements and notes thereto filed with the SEC in our 2019 Annual Report on Form 10-K. Interim financial reporting standards require us to make estimates that are based on assumptions regarding the outcome of future events and circumstances not known at that time, including the use of estimated effective tax rates. Inevitably, some assumptions will not materialize, unanticipated events or circumstances may occur which vary from those estimates and such variations may significantly affect our future results. Additionally, interim results may not be indicative of our results for future interim periods or our annual results. Certain prior year amounts have been reclassified to conform with the current year presentation. |
Cash Paid for Interest and Taxes and Non-Cash Investing Activities | Cash Paid for Interest and Taxes and Non-Cash Investing Activities Cash paid for interest was $27.1 million and $28.2 million for the nine months ended September 30, 2020 and September 30, 2019, respectively. Net cash income taxes paid was $7.6 million and $6.5 million for the nine months ended September 30, 2020 and September 30, 2019, respectively. As of September 30, 2020 and September 30, 2019, $0.2 million and $15.8 million, respectively, of equipment had been purchased but not yet paid and was included in accounts payable in our condensed consolidated balance sheets. |
New Accounting Standards | New Accounting Standards Accounting Standards Update (“ASU”) 2018-13, “Fair Value Measurement .” Effective January 1, 2020, the Company adopted ASU 2018-13 which allows companies to remove, modify and add certain disclosures related to fair value measurements. The adoption of this standard did not have a significant impact on the Company’s condensed consolidated financial statement disclosures. Accounting Standards Issued but Not Yet Adopted ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” In June 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-13, "Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments", which requires entities to use a new impairment model based on current expected credit losses (“CECL”) rather than incurred losses. Under CECL, estimated credit losses would incorporate relevant information about past events, current conditions and reasonable and supportable forecasts and any expected credit losses would be recognized at the time of sale. As a smaller reporting company (as defined under SEC regulations), the Company is not required to adopt the standard until fiscal years beginning after December 31, 2022. We are evaluating the impact this standard will have on our financial statements and disclosures. ASU 2018-14, “Compensation - Retirement Benefits - Defined Benefit Plans.” In August 2018, the FASB issued an ASU entitled “Compensation - Retirement Benefits - Defined Benefit Plans - General Subtopic 715-20 - Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans” (ASU 2018-14), which is designed to improve the effectiveness of disclosures by removing and adding disclosures related to defined benefit plans. ASU 2018-14 is effective for fiscal years ending after December 15, 2020. We are evaluating the impact this new standard will have on our financial statement disclosures. ASU 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” In March 2020, the FASB issued ASU 2020-04 entitled “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting,” which provides temporary optional guidance to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. The relief provided by this guidance is elective and applies to all entities, subject to meeting certain criteria, that have contracts, hedging relationships, and other transactions that reference the London Interbank Offered Rate (“LIBOR”) or another reference rate expected to be discontinued because of reference rate reform initiatives being undertaken in an effort to identify alternative reference rates that are more observable or transaction based and less susceptible to manipulation. The optional amendments of this guidance are effective for all entities upon adoption. We are currently assessing the impact of this new standard on our financial statements and disclosures. |
Fair Value Measurements | The Company applies fair value accounting for all financial assets and liabilities and non-financial assets and liabilities that are recognized or disclosed at fair value in the financial statements on a recurring basis, while other assets and liabilities are measured at fair value on a nonrecurring basis, such as an asset impairment. Fair value is estimated by applying the following hierarchy, which prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement: Level 1 - Quoted prices in active markets for identical assets or liabilities. Level 2 - Observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 - Inputs that are generally unobservable and typically reflect management’s estimate of assumptions that market participants would use in pricing the asset or liability. The carrying amounts for cash and cash equivalents, accounts receivable, accounts payable and accrued expenses approximate their fair values due to the short period of time until maturity. |
Derivatives, Methods of Accounting, Hedging Derivatives | Derivative Instruments and Hedging Activities We use derivatives to partially offset our exposure to foreign currency, interest rate, aluminum and other commodity price risk. We may enter into forward contracts, option contracts, swaps, collars or other derivative instruments to offset some of the risk on expected future cash flows and on certain existing assets and liabilities. However, we may choose not to hedge certain exposures for a variety of reasons including, but not limited to, accounting considerations and the prohibitive economic cost of hedging particular exposures. There can be no assurance the hedges will offset more than a portion of the financial impact resulting from movements in foreign currency exchange rates, interest rates, and aluminum or other commodity prices. To help protect gross margins from fluctuations in foreign currency exchange rates, certain of our subsidiaries, whose functional currency is the U.S. dollar or the Euro, hedge a portion of their forecasted foreign currency costs denominated in the Mexican Peso and Polish Zloty, respectively. We may hedge portions of our forecasted foreign currency exposure up to 48 months. We record all derivatives in the condensed consolidated balance sheets at fair value. Our accounting treatment for these instruments is based on the hedge designation. Gains or losses on derivatives that are designated as hedging instruments are recorded in accumulated other comprehensive income (loss) (“AOCI”) until the hedged item is recognized in earnings, at which point accumulated gains or losses will be recognized in earnings and classified with the underlying hedged transaction. Derivatives that are not designated as hedging instruments are adjusted to fair value through earnings in the financial statement line item to which the derivative relates. The Company has derivatives that are designated as hedging instruments as well as derivatives that do not qualify for designation as hedging instruments. |
Derivatives, Methods of Accounting, Derivatives Not Designated or Qualifying as Hedges | Derivatives that are not designated as hedging instruments are adjusted to fair value through earnings in the financial statement line item to which the derivative relates. |
Revenue (Tables)
Revenue (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Revenue From Contract With Customer [Abstract] | |
Summary of Company's Customer Receivables and Current and Long-term Contract Liabilities | The Company’s customer receivables and current and long-term contract liabilities balances as of September 30, 2020 and December 31, 2019 are as follows (in thousands): September 30, 2020 December 31, 2019 Change Customer receivables $ 72,272 $ 68,283 $ 3,989 Contract liabilities—current 8,105 5,880 2,225 Contract liabilities—noncurrent 12,465 13,577 (1,112 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Summary of Items Measured at Fair Value | The following tables categorize items measured at fair value as of September 30, 2020 and December 31, 2019: Fair Value Measurement at Reporting Date Using September 30, 2020 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (Dollars in thousands) Assets Derivative contracts $ 3,016 $ — $ 3,016 $ — Total $ 3,016 $ — $ 3,016 $ — Liabilities . Derivative contracts $ 28,984 $ — $ 28,984 $ — Total $ 28,984 $ — $ 28,984 $ — Fair Value Measurement at Reporting Date Using December 31, 2019 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (Dollars in thousands) Assets Derivative contracts $ 21,973 $ — $ 21,973 $ — Total $ 21,973 $ — $ 21,973 $ — Liabilities Derivative contracts $ 8,709 $ — $ 8,709 $ — Total $ 8,709 $ — $ 8,709 $ — |
Schedule of Carrying Values and Estimated Fair Values of Debt Instruments | The estimated fair value, as well as the carrying value, of the Company’s debt instruments are shown below: September 30, 2020 December 31, 2019 (Dollars in thousands) Estimated aggregate fair value $ 563,568 $ 606,093 Aggregate carrying value (1) 630,200 630,635 (1) |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Summary of Fair Value of Derivatives by Balance Sheet Line Item | The following tables display the fair value of derivatives by balance sheet line item at September 30, 2020 and December 31, 2019: September 30, 2020 Other Current Assets Other Non-current Assets Accrued Liabilities Other Non-current Liabilities (Dollars in thousands) Foreign exchange forward contracts designated as hedging instruments $ 794 $ 867 $ 7,753 $ 10,293 Foreign exchange forward contracts not designated as hedging instruments 7 — 466 — Aluminum forward contracts designated as hedging instruments — — 123 — Natural gas forward contracts designated as hedging instruments 837 511 142 39 Interest rate swap contracts designated as hedging instruments — — 4,872 5,296 Total derivative financial instruments $ 1,638 $ 1,378 $ 13,356 $ 15,628 December 31, 2019 Other Current Assets Other Non-current Assets Accrued Liabilities Other Non-current Liabilities (Dollars in thousands) Foreign exchange forward contracts designated as hedging instruments $ 7,808 $ 12,821 $ 60 $ 100 Foreign exchange forward contracts not designated as hedging instruments 1,196 — 554 — Aluminum forward contracts designated as hedging instruments 60 — 127 — Natural gas forward contracts designated as hedging instruments 81 7 1,312 727 Interest rate swap contracts designated as hedging instruments — — 2,304 3,525 Total derivative financial instruments $ 9,145 $ 12,828 $ 4,357 $ 4,352 |
Summary of Notional Amount and Estimated Fair Value of Derivative Financial Instruments | The following table summarizes the notional amount and estimated fair value of our derivative financial instruments: September 30, 2020 December 31, 2019 Notional U.S. Dollar Amount Fair Value Notional U.S. Dollar Amount Fair Value (Dollars in thousands) Foreign currency forward contracts designated as hedging instruments $ 431,025 $ (16,385 ) $ 449,181 $ 20,469 Foreign exchange forward contracts not designated as hedging instruments 15,539 (459 ) 73,491 642 Aluminum forward contracts designated as hedging instruments 4,971 (123 ) 9,405 (67 ) Natural gas forward contracts designated as hedging instruments 6,254 1,167 5,816 (1,951 ) Interest rate swap contracts designated as hedging instruments 235,000 (10,168 ) 260,000 (5,829 ) Total derivative financial instruments $ 692,789 $ (25,968 ) $ 797,893 $ 13,264 |
Summary of Gain or Loss Recognized in AOCI | The following tables summarize the gain or loss recognized in AOCI as of September 30, 2020 and 2019, the amounts reclassified from AOCI into earnings and the amounts recognized directly into earnings for the three and nine months ended September 30, 2020 and 2019: Three Months Ended September 30, 2020 Amount of Gain or (Loss) Recognized in AOCI on Derivatives Amount of Pre-tax Gain or (Loss) Reclassified from AOCI into Income Amount of Pre-tax Gain or (Loss) Recognized in Income on Derivatives (Dollars in thousands) Derivative Contracts $ 4,683 $ (2,261 ) $ 3,458 Total $ 4,683 $ (2,261 ) $ 3,458 Nine Months Ended September 30, 2020 Amount of Gain or (Loss) Recognized in AOCI on Derivatives Amount of Pre-tax Gain or (Loss) Reclassified from AOCI into Income Amount of Pre-tax Gain or (Loss) Recognized in Income on Derivatives (Dollars in thousands) Derivative Contracts $ (25,316 ) $ (7,355 ) $ (289 ) Total $ (25,316 ) $ (7,355 ) $ (289 ) Three Months Ended September 30, 2019 Amount of Gain or (Loss) Recognized in AOCI on Derivatives Amount of Pre-tax Gain or (Loss) Reclassified from AOCI into Income Amount of Pre-tax Gain or (Loss) Recognized in Income on Derivatives (Dollars in thousands) Derivative Contracts $ (8,302 ) $ 703 $ 1,817 Total $ (8,302 ) $ 703 $ 1,817 Nine Months Ended September 30, 2019 Amount of Gain or (Loss) Recognized in AOCI on Derivatives Amount of Pre-tax Gain or (Loss) Reclassified from AOCI into Income Amount of Pre-tax Gain or (Loss) Recognized in Income on Derivatives (Dollars in thousands) Derivative Contracts $ (1,520 ) $ 2,417 $ 3,557 Total $ (1,520 ) $ 2,417 $ 3,557 |
Business Segments (Tables)
Business Segments (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
Summary of Net Sales and Results of Operations and Total Assets by Reportable Segment | (Dollars in thousands) Net Sales Income from Operations Three Months Ended September 30, 2020 September 30, 2019 September 30, 2020 September 30, 2019 North America $ 166,662 $ 188,089 $ 16,113 $ (4,440 ) Europe 150,441 163,925 3,125 4,197 $ 317,103 $ 352,014 $ 19,238 $ (243 ) (Dollars in thousands) Depreciation and Amortization Capital Expenditures Three Months Ended September 30, 2020 September 30, 2019 September 30, 2020 September 30, 2019 North America $ 8,742 $ 15,432 $ 6,673 $ 5,425 Europe 16,076 15,396 4,158 13,494 $ 24,818 $ 30,828 $ 10,831 $ 18,919 (Dollars in thousands) Net Sales Income from Operations Nine Months Ended September 30, 2020 September 30, 2019 September 30, 2020 September 30, 2019 North America $ 381,129 $ 553,607 $ 2,430 $ 13,586 Europe 381,921 508,599 (200,324 ) 28,841 $ 763,050 $ 1,062,206 $ (197,894 ) $ 42,427 (Dollars in thousands) Depreciation and Amortization Capital Expenditures Nine Months Ended September 30, 2020 September 30, 2019 September 30, 2020 September 30, 2019 North America $ 25,967 $ 31,248 $ 19,109 $ 15,988 Europe 47,167 46,252 14,483 31,596 $ 73,134 $ 77,500 $ 33,592 $ 47,584 (Dollars in thousands) Property, Plant and Equipment, net Goodwill and Intangible Assets September 30, 2020 December 31, 2019 September 30, 2020 December 31, 2019 North America $ 214,656 $ 237,372 $ — $ — Europe 292,381 291,910 112,341 321,910 $ 507,037 $ 529,282 $ 112,341 $ 321,910 (Dollars in thousands) Total Assets September 30, 2020 December 31, 2019 North America $ 433,645 $ 484,689 Europe 645,366 827,178 $ 1,079,011 $ 1,311,867 |
Net Sales by Manufacturing Geographic Location | Net sales by manufacturing geographic location are as follows: Three Months Ended Nine Months Ended September 30, 2020 September 30, 2019 September 30, 2020 September 30, 2019 (Dollars in thousands) Net sales: U.S. $ 5,094 $ 26,916 $ 24,890 $ 81,638 Mexico 161,568 161,173 356,239 471,969 Germany 58,413 59,548 142,177 180,785 Poland 92,028 104,377 239,744 327,814 Consolidated net sales $ 317,103 $ 352,014 $ 763,050 $ 1,062,206 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Inventory Disclosure [Abstract] | |
Summary of Inventories | September 30, 2020 December 31, 2019 (Dollars in thousands) Raw materials $ 32,536 $ 44,245 Work in process 40,459 40,344 Finished goods 68,292 83,881 Inventories, net $ 141,287 $ 168,470 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Property Plant And Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | September 30, 2020 December 31, 2019 (Dollars in thousands) Land and buildings $ 168,758 $ 158,907 Machinery and equipment 829,983 856,961 Leasehold improvements and others 11,176 12,173 Construction in progress 44,045 30,179 1,053,962 1,058,220 Accumulated depreciation (546,925 ) (528,938 ) Property, plant and equipment, net $ 507,037 $ 529,282 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Summary of Finite-Lived and Indefinite-Lived Intangible Assets | Following is a summary of the Company’s finite-lived and indefinite-lived intangible assets and goodwill as of September 30, 2020 and December 31, 2019. As of September 30, 2020 Gross Carrying Amount Impairment Accumulated Amortization Currency Translation Net Carrying Amount Remaining Weighted Average Amortization Period (Dollars in thousands) Brand name $ 9,000 $ — $ (6,136 ) $ 269 $ 3,133 2-3 Technology 15,000 — (10,226 ) 441 5,215 1-3 Customer relationships 167,000 — (68,940 ) 5,933 103,993 3-8 Total finite 191,000 — (85,302 ) 6,643 112,341 Trade names 14,000 (13,772 ) — (228 ) — Indefinite Total intangibles $ 205,000 $ (13,772 ) $ (85,302 ) $ 6,415 $ 112,341 Nine Months Ended September 30, 2020 Beginning Balance Ending Balance Gross Accumulated Impairment Net Balance Impairment Currency Translation Gross Accumulated Impairment Net Balance (Dollars in thousands) Goodwill $ 284,337 $ (99,505 ) $ 184,832 $ (182,528 ) $ (2,304 ) $ 282,033 $ (282,033 ) $ — As of December 31, 2019 Gross Carrying Amount Impairment Accumulated Amortization Currency Translation Net Carrying Amount Remaining Weighted Average Amortization Period (Dollars in thousands) Brand name $ 9,000 $ — $ (4,778 ) $ 110 $ 4,332 3-4 Technology 15,000 — (7,963 ) 183 7,220 2-4 Customer relationships 167,000 — (53,681 ) 954 114,273 4-9 Total finite 191,000 — (66,422 ) 1,247 125,825 Trade names 14,000 (2,733 ) — (14 ) 11,253 Indefinite Total intangibles $ 205,000 $ (2,733 ) $ (66,422 ) $ 1,233 $ 137,078 Year Ended December 31, 2019 Beginning Balance Ending Balance Gross Accumulated Impairment Net Balance Impairment Currency Translation Gross Accumulated Impairment Net Balance (Dollars in thousands) Goodwill $ 291,434 $ — $ 291,434 $ (99,505 ) $ (7,097 ) $ 284,337 $ (99,505 ) $ 184,832 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Summary of Long-Term Debt and Related Weighted Average Interest Rates | A summary of long-term debt and the related weighted average interest rates is shown below: September 30, 2020 (Dollars in Thousands) Debt Instrument Total Debt Debt Issuance Costs (1) Total Debt, Net Weighted Average Interest Rate Term Loan Facility $ 349,200 $ (7,790 ) $ 341,410 4.1 % 6.00% Senior Notes due 2025 254,904 (4,670 ) 250,234 6.0 % European CapEx Loans 23,410 — 23,410 2.4 % Finance Leases 2,686 — 2,686 3.0 % $ 630,200 $ (12,460 ) 617,740 Less: Current portion (6,034 ) Long-term debt $ 611,706 December 31, 2019 (Dollars in Thousands) Debt Instrument Total Debt Debt Issuance Costs (1) Total Debt, Net Weighted Average Interest Rate Term Loan Facility $ 371,800 $ (10,192 ) $ 361,608 5.7 % 6.00% Senior Notes due 2025 243,074 (5,408 ) 237,666 6.0 % European CapEx Loan 12,693 — 12,693 2.2 % Finance Leases 3,068 — 3,068 2.9 % $ 630,635 $ (15,600 ) 615,035 Less: Current portion (4,010 ) Long-term debt $ 611,025 (1) Unamortized portion |
European Non-Controlling Rede_2
European Non-Controlling Redeemable Equity (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Noncontrolling Interest [Abstract] | |
Summary of Redeemable Noncontrolling Interests | The following table summarizes the European non-controlling redeemable equity activity through the period ended September 30, 2020 Balance at December 31, 2018 $ 13,849 Dividends accrued 566 Dividends paid (848 ) Translation adjustment (361 ) Purchase of shares (6,681 ) Balance at December 31, 2019 6,525 Dividends accrued 152 Dividends paid (45 ) Translation adjustment (71 ) Purchase of shares (4,981 ) Balance at September 30, 2020 $ 1,580 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | Three Months Ended Nine Months Ended September 30, 2020 September 30, 2019 September 30, 2020 September 30, 2019 (Dollars in thousands, except per share amounts) Basic Earnings Per Share: Net income (loss) $ 11,146 $ (6,631 ) $ (222,154 ) $ 2,589 Less: Redeemable preferred stock dividends and accretion (8,056 ) (7,587 ) (23,811 ) (23,275 ) Less: European non-controlling redeemable equity dividend (106 ) (113 ) (152 ) (496 ) Basic numerator $ 2,984 $ (14,331 ) $ (246,117 ) $ (21,182 ) Basic earnings (loss) per share $ 0.12 $ (0.57 ) $ (9.66 ) $ (0.84 ) Weighted average shares outstanding – Basic 25,592 25,127 25,466 25,089 Diluted Earnings Per Share: Net income (loss) $ 11,146 $ (6,631 ) $ (222,154 ) $ 2,589 Less: Redeemable preferred stock dividends and accretion (8,056 ) (7,587 ) (23,811 ) (23,275 ) Less: European non-controlling redeemable equity dividend (106 ) (113 ) (152 ) (496 ) Diluted numerator $ 2,984 $ (14,331 ) $ (246,117 ) $ (21,182 ) Diluted earnings (loss) per share $ 0.12 $ (0.57 ) $ (9.66 ) $ (0.84 ) Weighted average shares outstanding – Basic 25,592 25,127 25,466 25,089 Dilutive effect of common share equivalents 118 — — — Weighted average shares outstanding – Diluted 25,710 25,127 25,466 25,089 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Schedule of Lease Expense, Cash Flow, Operating and Finance Lease Assets and Liabilities, Average Lease Term and Average Discount Rate | Lease expense and cash flow for the three and nine months ended September 30, 2020 and 2019 and operating and finance lease assets and liabilities, average lease term and average discount rate as of September 30, 2020 and December 31, 2019 are as follows: Three Months Ended Nine Months Ended September 30, 2020 September 30, 2019 September 30, 2020 September 30, 2019 Lease Expense Finance lease expense: Amortization of right-of-use assets $ 615 $ 548 $ 906 $ 1,551 Interest on lease liabilities 43 34 63 65 Operating lease expense 1,699 846 2,534 2,560 Total lease expense $ 2,357 $ 1,428 $ 3,503 $ 4,176 Cash Flow Components Cash paid for amounts included in the measurement of lease liabilities: Operating cash outflows from finance leases $ 43 $ 34 $ 63 $ 65 Operating cash outflows from operating leases 1,818 821 2,692 2,484 Financing cash outflows from finance leases 467 381 723 1,035 Right-of-use assets obtained in exchange for finance lease liabilities, net of terminations and disposals 180 1,292 252 1,803 Right-of-use assets obtained in exchange for operating lease liabilities, net of terminations and disposals 422 12 637 18,353 September 30, 2020 December 31, 2019 Balance Sheet Information Operating leases: Other non-current assets $ 14,087 $ 15,201 Accrued liabilities $ (2,926 ) $ (2,949 ) Other non-current liabilities (12,120 ) (13,282 ) Total operating lease liabilities $ (15,046 ) $ (16,231 ) Finance leases: Property and equipment gross $ 5,299 $ 4,821 Accumulated depreciation (3,024 ) (2,118 ) Property and equipment, net $ 2,275 $ 2,703 Current portion of long-term debt $ (893 ) $ (1,023 ) Long-term debt (1,793 ) (2,045 ) Total finance lease liabilities $ (2,686 ) $ (3,068 ) Lease Term and Discount Rates Weighted-average remaining lease term - finance leases (years) 3.9 4.1 Weighted-average remaining lease term - operating leases (years) 6.1 6.4 Weighted-average discount rate - finance leases 3.0 % 2.9 % Weighted-average discount rate - operating leases 3.8 % 3.9 % |
Schedule of Future Minimum Rental Payments Under Finance and Operating Leases | Summarized future minimum payments under our leases as of September 30, 2020 are as follows: September 30, 2020 Finance Leases Operating Leases Lease Maturities (in thousands) Three remaining months of 2020 $ 151 $ 1,798 2021 1,083 3,216 2022 771 2,672 2023 364 2,316 2024 122 2,094 Thereafter 432 4,958 Total 2,923 17,054 Less: Imputed interest (237 ) (2,008 ) Total lease liabilities, net of interest $ 2,686 $ 15,046 |
Retirement Plans (Tables)
Retirement Plans (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Compensation And Retirement Disclosure [Abstract] | |
Summary of Components of Net Periodic Pension Cost | The following table summarizes the components of net periodic pension cost for the three and nine months ended September 30, 2020 and 2019. Three Months Ended Nine Months Ended September 30, 2020 September 30, 2019 September 30, 2020 September 30, 2019 (Dollars in thousands) Interest cost $ 251 $ 286 $ 753 $ 858 Net amortization 72 52 216 156 Net periodic pension cost $ 323 $ 338 $ 969 $ 1,014 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Restricted Stock Unit and Restricted Performance Stock Unit Activity | Restricted stock unit and restricted performance stock unit activity for the nine months ended September 30, 2020 is summarized in the following table: Equity Incentive Awards Restricted Stock Units Weighted Average Grant Date Fair Value Performance Shares Weighted Average Grant Date Fair Value Options Weighted Average Exercise Price Balance at December 31, 2019 1,047,256 $ 5.39 1,548,793 $ 7.17 50,250 $ 18.86 Granted 634,317 2.87 948,636 3.25 — — Settled (401,723 ) 6.14 (245,713 ) 5.05 — — Forfeited or expired (195,540 ) 4.27 (334,141 ) 7.44 (26,250 ) 17.46 Balance at September 30, 2020 1,084,310 $ 3.84 1,917,575 $ 5.28 24,000 $ 20.39 Vested or expected to vest at September 30, 2020 981,873 $ 3.82 323,862 $ 7.79 24,000 $ 20.39 |
Nature of Operations and Pres_3
Nature of Operations and Presentation of Condensed Consolidated Financial Statements - Additional Information (Detail) Wheel in Millions, $ in Millions | 9 Months Ended | |
Sep. 30, 2020USD ($)EmployeeManufacturingFacilityWheel | Sep. 30, 2019USD ($) | |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||
Number of employees | Employee | 7,500 | |
Number of manufacturing facilities | ManufacturingFacility | 8 | |
Annual capacity of manufacturing wheels | Wheel | 20 | |
Cash paid for interest | $ 27.1 | $ 28.2 |
Net cash income taxes paid | 7.6 | 6.5 |
Noncash or part noncash acquisition, fixed assets acquired | $ 0.2 | $ 15.8 |
Sales [Member] | Customer Concentration Risk [Member] | ||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||
Concentration risk, percentage | 92.00% |
Revenue - Summary of Company's
Revenue - Summary of Company's Customer Receivables and Current and Long-term Contract Liabilities (Detail) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Customer receivables | $ 72,272 | $ 68,283 |
Contract liabilities—current | 8,105 | 5,880 |
Contract liabilities—noncurrent | 12,465 | $ 13,577 |
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Customer receivables | 3,989 | |
Contract liabilities—current | 2,225 | |
Contract liabilities—noncurrent | $ (1,112) |
Fair Value Measurements - Recur
Fair Value Measurements - Recurring (Detail) - Recurring [Member] - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Assets | ||
Derivative contracts | $ 3,016 | $ 21,973 |
Total | 3,016 | 21,973 |
Liabilities | ||
Derivative contracts | 28,984 | 8,709 |
Total | 28,984 | 8,709 |
Level 2 [Member] | ||
Assets | ||
Derivative contracts | 3,016 | 21,973 |
Total | 3,016 | 21,973 |
Liabilities | ||
Derivative contracts | 28,984 | 8,709 |
Total | $ 28,984 | $ 8,709 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Carrying Values and Estimated Fair Values of Debt Instruments (Detail) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Derivative Instrument Detail [Abstract] | ||
Estimated aggregate fair value | $ 563,568 | $ 606,093 |
Aggregate carrying value | $ 630,200 | $ 630,635 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2020 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivative instruments objectives | We use derivatives to partially offset our exposure to foreign currency, interest rate, aluminum and other commodity price risk. We may enter into forward contracts, option contracts, swaps, collars or other derivative instruments to offset some of the risk on expected future cash flows and on certain existing assets and liabilities. |
Maximum length of time, foreign currency cash flow hedge | 48 months |
Derivative Financial Instrume_4
Derivative Financial Instruments - Summary of Fair Value of Derivatives by Balance Sheet Line Item (Detail) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative assets | $ 1,638 | $ 9,145 |
Other Non-current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative assets | 1,378 | 12,828 |
Accrued Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative liabilities | 13,356 | 4,357 |
Other Non-current Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative liabilities | 15,628 | 4,352 |
Designated as Hedging Instrument [Member] | Other Current Assets [Member] | Natural Gas [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative assets | 837 | 81 |
Designated as Hedging Instrument [Member] | Other Non-current Assets [Member] | Natural Gas [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative assets | 511 | 7 |
Designated as Hedging Instrument [Member] | Accrued Liabilities [Member] | Natural Gas [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative liabilities | 142 | 1,312 |
Designated as Hedging Instrument [Member] | Other Non-current Liabilities [Member] | Natural Gas [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative liabilities | 39 | 727 |
Foreign Exchange Forward Contracts [Member] | Designated as Hedging Instrument [Member] | Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative assets | 794 | 7,808 |
Foreign Exchange Forward Contracts [Member] | Designated as Hedging Instrument [Member] | Other Non-current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative assets | 867 | 12,821 |
Foreign Exchange Forward Contracts [Member] | Designated as Hedging Instrument [Member] | Accrued Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative liabilities | 7,753 | 60 |
Foreign Exchange Forward Contracts [Member] | Designated as Hedging Instrument [Member] | Other Non-current Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative liabilities | 10,293 | 100 |
Foreign Exchange Forward Contracts [Member] | Not Designated as Hedging Instrument [Member] | Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative assets | 7 | 1,196 |
Foreign Exchange Forward Contracts [Member] | Not Designated as Hedging Instrument [Member] | Accrued Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative liabilities | 466 | 554 |
Aluminum Forward Contracts [Member] | Designated as Hedging Instrument [Member] | Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative assets | 60 | |
Aluminum Forward Contracts [Member] | Designated as Hedging Instrument [Member] | Accrued Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative liabilities | 123 | 127 |
Interest Rate Swap Contracts Designated as Hedges [Member] | Designated as Hedging Instrument [Member] | Accrued Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative liabilities | 4,872 | 2,304 |
Interest Rate Swap Contracts Designated as Hedges [Member] | Designated as Hedging Instrument [Member] | Other Non-current Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative liabilities | $ 5,296 | $ 3,525 |
Derivative Financial Instrume_5
Derivative Financial Instruments - Summary of Notional Amount and Estimated Fair Value of Derivative Financial Instruments (Detail) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Notional Amount | $ 692,789 | $ 797,893 |
Derivative, Fair Value, Net | (25,968) | 13,264 |
Designated as Hedging Instrument [Member] | Natural Gas [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Notional Amount | 6,254 | 5,816 |
Derivative, Fair Value, Net | 1,167 | (1,951) |
Designated as Hedging Instrument [Member] | Foreign Exchange Forward Contracts Designated as Hedging Instruments [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Notional Amount | 431,025 | 449,181 |
Derivative, Fair Value, Net | (16,385) | 20,469 |
Designated as Hedging Instrument [Member] | Aluminum Forward Contracts [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Notional Amount | 4,971 | 9,405 |
Derivative, Fair Value, Net | (123) | (67) |
Designated as Hedging Instrument [Member] | Interest Rate Swap Contracts Designated as Hedges [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Notional Amount | 235,000 | 260,000 |
Derivative, Fair Value, Net | (10,168) | (5,829) |
Not Designated as Hedging Instrument [Member] | Foreign Exchange Forward Contracts Designated as Hedging Instruments [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Notional Amount | 15,539 | 73,491 |
Derivative, Fair Value, Net | $ (459) | $ 642 |
Derivative Financial Instrume_6
Derivative Financial Instruments - Summary of Gain or Loss Recognized in AOCI (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Derivatives, Fair Value [Line Items] | ||||
Amount of Gain or (Loss) Recognized in AOCI on Derivatives | $ 4,683 | $ (8,302) | $ (25,316) | $ (1,520) |
Amount of Pre-tax Gain or (Loss) Reclassified from AOCI into Income | (2,261) | 703 | (7,355) | 2,417 |
Amount of Pre-tax Gain or (Loss) Recognized in Income on Derivatives | 3,458 | 1,817 | (289) | 3,557 |
Derivative [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Amount of Gain or (Loss) Recognized in AOCI on Derivatives | 4,683 | (8,302) | (25,316) | (1,520) |
Amount of Pre-tax Gain or (Loss) Reclassified from AOCI into Income | (2,261) | 703 | (7,355) | 2,417 |
Amount of Pre-tax Gain or (Loss) Recognized in Income on Derivatives | $ 3,458 | $ 1,817 | $ (289) | $ 3,557 |
Business Segments - Summary of
Business Segments - Summary of Net Sales and Results of Operations and Total Assets by Reportable Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Net Sales | $ 317,103 | $ 352,014 | $ 763,050 | $ 1,062,206 | |
Income from Operations | 19,238 | (243) | (197,894) | 42,427 | |
Depreciation and Amortization | 24,818 | 30,828 | 73,134 | 77,500 | |
Capital Expenditures | 10,831 | 18,919 | 33,592 | 47,584 | |
Property, Plant and Equipment, net | 507,037 | 507,037 | $ 529,282 | ||
Goodwill and Intangible Assets | 112,341 | 112,341 | 321,910 | ||
Total assets | 1,079,011 | 1,079,011 | 1,311,867 | ||
North America [Member] | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Net Sales | 166,662 | 188,089 | 381,129 | 553,607 | |
Income from Operations | 16,113 | (4,440) | 2,430 | 13,586 | |
Depreciation and Amortization | 8,742 | 15,432 | 25,967 | 31,248 | |
Capital Expenditures | 6,673 | 5,425 | 19,109 | 15,988 | |
Property, Plant and Equipment, net | 214,656 | 214,656 | 237,372 | ||
Total assets | 433,645 | 433,645 | 484,689 | ||
Europe [Member] | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Net Sales | 150,441 | 163,925 | 381,921 | 508,599 | |
Income from Operations | 3,125 | 4,197 | (200,324) | 28,841 | |
Depreciation and Amortization | 16,076 | 15,396 | 47,167 | 46,252 | |
Capital Expenditures | 4,158 | $ 13,494 | 14,483 | $ 31,596 | |
Property, Plant and Equipment, net | 292,381 | 292,381 | 291,910 | ||
Goodwill and Intangible Assets | 112,341 | 112,341 | 321,910 | ||
Total assets | $ 645,366 | $ 645,366 | $ 827,178 |
Business Segments - Net Sales b
Business Segments - Net Sales by Manufacturing Geographic Location (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net sales | $ 317,103 | $ 352,014 | $ 763,050 | $ 1,062,206 |
U.S. [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net sales | 5,094 | 26,916 | 24,890 | 81,638 |
Mexico [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net sales | 161,568 | 161,173 | 356,239 | 471,969 |
Germany [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net sales | 58,413 | 59,548 | 142,177 | 180,785 |
Poland [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net sales | $ 92,028 | $ 104,377 | $ 239,744 | $ 327,814 |
Inventories - Summary of Invent
Inventories - Summary of Inventories (Detail) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 32,536 | $ 44,245 |
Work in process | 40,459 | 40,344 |
Finished goods | 68,292 | 83,881 |
Inventories, net | $ 141,287 | $ 168,470 |
Inventories - Additional Inform
Inventories - Additional Information (Detail) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Inventory Disclosure [Abstract] | ||
Inventory, non-current | $ 10.8 | $ 10.6 |
Property, Plant and Equipment -
Property, Plant and Equipment - Schedule of Property, Plant and Equipment (Detail) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 1,053,962 | $ 1,058,220 |
Accumulated depreciation | (546,925) | (528,938) |
Property, plant and equipment, net | 507,037 | 529,282 |
Land and Buildings [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 168,758 | 158,907 |
Production Machinery and Technical Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 829,983 | 856,961 |
Leasehold Improvements and Other [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 11,176 | 12,173 |
Construction in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 44,045 | $ 30,179 |
Property, Plant and Equipment_2
Property, Plant and Equipment - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Property, Plant and Equipment [Line Items] | ||||
Depreciation expense | $ 18.3 | $ 24.2 | $ 54.4 | $ 57.4 |
Fayetteville, Arkansas Manufacturing Facility [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Accelerated depreciation | $ 7.6 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Finite-Lived Intangible Assets [Line Items] | ||||||
Non-cash impairment charge recognized | $ 13,772 | $ (2,733) | ||||
Impairment charges | $ 193,600 | $ 102,200 | ||||
Weighted income approach to determine the fair value of the company's reporting units | 75.00% | |||||
Weighted market approach to determine the fair value of the company's reporting units | 25.00% | |||||
Amortization of intangible assets | $ 6,500 | $ 6,600 | 18,800 | $ 20,100 | ||
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||||||
2020 | 24,500 | 24,500 | ||||
2021 | 24,500 | 24,500 | ||||
2022 | 21,700 | 21,700 | ||||
2023 | 19,800 | 19,800 | ||||
2024 | $ 19,800 | $ 19,800 | ||||
Market Approach Valuation Technique [Member] | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Fair value measurements valuation process multiple used | 4.9X EBITDA | 5.7X EBITDA | ||||
Measurement Input, Discount Rate [Member] | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Discount rate | 12.00% | 10.00% | ||||
Measurement Input, Long-term Revenue Growth Rate [Member] | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Long-term growth rate | 1.50% | 2.00% | ||||
Trade Names [Member] | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Non-cash impairment charge recognized | $ 11,000 | |||||
European Operations [Member] | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Amount of fair value in excess of carrying value | $ 182,600 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Summary of Finite-Lived and Indefinite-Lived Intangible Assets (Detail) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived Intangible Assets, Gross Carrying Amount | $ 191,000 | $ 191,000 |
Accumulated Amortization | (85,302) | (66,422) |
Finite-lived Intangible Assets, Currency Translation | 6,643 | 1,247 |
Finite lived Intangible Assets, Net | 112,341 | 125,825 |
Indefinite lived Intangible Assets, Gross Carrying Amount | 14,000 | 14,000 |
Indefinite lived Intangible Assets, Gross Carrying Amount, Impairment | (13,772) | 2,733 |
Indefinite lived Intangible Assets, Currency Translation | (228) | (14) |
Indefinite lived Intangible Assets, Net | 11,253 | |
Gross Carrying Amount | 205,000 | 205,000 |
Impairment | (13,772) | (2,733) |
Currency Translation | 6,415 | 1,233 |
Intangibles, net | 112,341 | 137,078 |
Goodwill Gross, Beginning Balance | 284,337 | 291,434 |
Goodwill Accumulated Impairment, Beginning Balance | (99,505) | |
Goodwill Net Balance,Beginning Balance | 184,832 | 291,434 |
Goodwill, Impairment | (182,528) | (99,505) |
Goodwill, Currency Translation | (2,304) | (7,097) |
Goodwill Gross, Ending Balance | 282,033 | 284,337 |
Goodwill Accumulated Impairment, Ending Balance | (282,033) | (99,505) |
Goodwill, Ending Balance | 184,832 | |
Indefinite lived Intangible Assets, Gross Carrying Amount, Impairment | 13,772 | (2,733) |
Brand Name [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived Intangible Assets, Gross Carrying Amount | 9,000 | 9,000 |
Accumulated Amortization | (6,136) | (4,778) |
Finite-lived Intangible Assets, Currency Translation | 269 | 110 |
Finite lived Intangible Assets, Net | $ 3,133 | $ 4,332 |
Brand Name [Member] | Minimum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Remaining Weighted Average Amortization Period | 2 years | 3 years |
Brand Name [Member] | Maximum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Remaining Weighted Average Amortization Period | 3 years | 4 years |
Technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived Intangible Assets, Gross Carrying Amount | $ 15,000 | $ 15,000 |
Accumulated Amortization | (10,226) | (7,963) |
Finite-lived Intangible Assets, Currency Translation | 441 | 183 |
Finite lived Intangible Assets, Net | $ 5,215 | $ 7,220 |
Technology [Member] | Minimum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Remaining Weighted Average Amortization Period | 1 year | 2 years |
Technology [Member] | Maximum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Remaining Weighted Average Amortization Period | 3 years | 4 years |
Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived Intangible Assets, Gross Carrying Amount | $ 167,000 | $ 167,000 |
Accumulated Amortization | (68,940) | (53,681) |
Finite-lived Intangible Assets, Currency Translation | 5,933 | 954 |
Finite lived Intangible Assets, Net | $ 103,993 | $ 114,273 |
Customer Relationships [Member] | Minimum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Remaining Weighted Average Amortization Period | 3 years | 4 years |
Customer Relationships [Member] | Maximum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Remaining Weighted Average Amortization Period | 8 years | 9 years |
Debt - Summary of Long-Term Deb
Debt - Summary of Long-Term Debt and Related Weighted Average Interest Rates (Detail) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 |
Debt Instrument [Line Items] | ||||
Total Debt | $ 630,200 | $ 630,635 | ||
Debt Issuance Costs | (12,460) | (15,600) | ||
Total Debt, Net | 617,740 | 615,035 | ||
Less: Current portion | (6,034) | (4,010) | ||
Long-term debt | 611,706 | 611,025 | ||
Term Loan Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Total Debt | 349,200 | 371,800 | ||
Debt Issuance Costs | (7,790) | (10,192) | ||
Total Debt, Net | $ 341,410 | $ 361,608 | ||
Weighted Average Interest Rate | 4.10% | 5.70% | ||
Senior Notes [Member] | Senior Notes, 6.00%, due 2025 [Member] | ||||
Debt Instrument [Line Items] | ||||
Total Debt | $ 254,904 | $ 243,074 | ||
Debt Issuance Costs | (4,670) | (5,408) | ||
Total Debt, Net | $ 250,234 | $ 237,666 | ||
Weighted Average Interest Rate | 6.00% | 6.00% | ||
Long-term debt | $ 6,300 | $ 6,600 | $ 19,400 | |
European CapEx Loans [Member] | ||||
Debt Instrument [Line Items] | ||||
Total Debt | $ 23,410 | 12,693 | ||
Total Debt, Net | $ 23,410 | $ 12,693 | ||
Weighted Average Interest Rate | 2.40% | 2.20% | ||
Finance Leases [Member] | ||||
Debt Instrument [Line Items] | ||||
Total Debt | $ 2,686 | $ 3,068 | ||
Total Debt, Net | $ 2,686 | $ 3,068 | ||
Weighted Average Interest Rate | 3.00% | 2.90% |
Debt - Summary of Long-Term D_2
Debt - Summary of Long-Term Debt and Related Weighted Average Interest Rates (Parenthetical) (Detail) | Sep. 30, 2020 | Dec. 31, 2019 | Jun. 15, 2017 |
Senior Notes, 6.00%, due 2025 [Member] | Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, interest rate stated, percentage | 6.00% | 6.00% | 6.00% |
Debt - Additional Information (
Debt - Additional Information (Detail) | Sep. 30, 2017 | Jun. 15, 2017EUR (€) | Mar. 22, 2017USD ($) | Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2020EUR (€) | Sep. 30, 2019USD ($) | Sep. 30, 2020EUR (€) | Jan. 31, 2020EUR (€) | Dec. 31, 2019EUR (€) | Sep. 30, 2019EUR (€) | Jun. 30, 2019EUR (€) | May 30, 2017USD ($) |
Debt Instrument [Line Items] | |||||||||||||||
Long-term debt | $ 611,025,000 | $ 611,706,000 | |||||||||||||
Debt default, maximum period of failure to comply with obligations, covenants or agreements | 60 days | 60 days | |||||||||||||
Debt default, holder percent to declare all notes due, minimum | 30.00% | 30.00% | |||||||||||||
Term loan facility balance | 630,635,000 | $ 630,200,000 | |||||||||||||
Long-term debt | 615,035,000 | 617,740,000 | |||||||||||||
Long-term debt, current | 4,010,000 | 6,034,000 | |||||||||||||
Repayments under revolving credit facility | 316,910,000 | $ 69,600,000 | |||||||||||||
European Operations [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Long-term debt | $ 11,000,000 | $ 70,700,000 | |||||||||||||
Senior Notes, 6.00%, due 2025 [Member] | Senior Notes [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt Instrument, Face Amount | € 250,000,000 | $ 6,600,000 | $ 7,800,000 | $ 22,400,000 | 7,800,000 | € 6,000,000 | € 7,000,000 | € 20,000,000 | |||||||
Debt instrument, interest rate stated, percentage | 6.00% | 6.00% | 6.00% | 6.00% | 6.00% | ||||||||||
Debt instrument, repurchase amount | $ 6,500,000 | 7,600,000 | 21,800,000 | 7,600,000 | |||||||||||
Long-term debt | 6,300,000 | 6,600,000 | 19,400,000 | $ 6,600,000 | |||||||||||
Net gain on extinguishment of debt | 300,000 | $ 1,000,000 | $ 2,400,000 | ||||||||||||
Term loan facility balance | 243,074,000 | $ 254,904,000 | |||||||||||||
Long-term debt | $ 237,666,000 | 250,234,000 | |||||||||||||
Senior Secured Term Loan Facility [Member] | Senior Notes [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Amount of term loan facility | $ 400,000,000 | ||||||||||||||
Line of credit facility maturity date | May 23, 2024 | ||||||||||||||
Repayments under term loan facility | 50,800,000 | ||||||||||||||
Term loan facility balance | 349,200,000 | ||||||||||||||
Amount outstanding | 4,800,000 | ||||||||||||||
Senior Secured Term Loan Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | Senior Notes [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt instrument, basis spread on variable rate | 0.00% | ||||||||||||||
Senior Secured Term Loan Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member] | Senior Notes [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt instrument, basis spread on variable rate | 4.00% | ||||||||||||||
Senior Secured Term Loan Facility [Member] | Base Rate [Member] | Senior Notes [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt instrument, basis spread on variable rate | 2.00% | ||||||||||||||
Senior Secured Term Loan Facility [Member] | Federal Funds Effective Swap Rate [Member] | Senior Notes [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt instrument, basis spread on variable rate | 0.50% | ||||||||||||||
Senior Secured Term Loan Facility [Member] | One Month London Interbank Offered Rate (LIBOR) [Member] | Senior Notes [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt instrument, basis spread on variable rate | 1.00% | ||||||||||||||
Senior Secured Term Loan Facility [Member] | One Month LIBOR Plus Margin [Member] | Senior Notes [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt instrument, basis spread on variable rate | 3.00% | ||||||||||||||
Equipment Loan [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt instrument, interest rate stated, percentage | 2.67% | 2.67% | |||||||||||||
Long-term debt | $ 13,400,000 | € 12,000,000 | |||||||||||||
Loans outstanding | 12,400,000 | € 10,600,000 | |||||||||||||
Debt Instrument Redemption Period One [Member] | Senior Notes, 6.00%, due 2025 [Member] | Senior Notes [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Redemption percentage | 103.00% | ||||||||||||||
Debt Instrument Redemption Period Two [Member] | Senior Notes, 6.00%, due 2025 [Member] | Senior Notes [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Redemption percentage | 101.50% | ||||||||||||||
Debt Instrument Redemption Period Three [Member] | Senior Notes, 6.00%, due 2025 [Member] | Senior Notes [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Redemption percentage | 100.00% | ||||||||||||||
Revolving Credit Facility [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Commitment fees percentage | 0.50% | ||||||||||||||
Outstanding borrowings and undrawn letters of credit threshold amount | 20,000,000 | ||||||||||||||
Line of credit facility, commitment amount | $ 160,000,000 | ||||||||||||||
Revolving Credit Facility [Member] | Minimum [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Commitment fees percentage | 0.50% | ||||||||||||||
Net leverage ratio | 1.00% | 1.00% | |||||||||||||
Revolving Credit Facility [Member] | Maximum [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Commitment fees percentage | 0.25% | ||||||||||||||
Net leverage ratio | 4.50% | 4.50% | |||||||||||||
Line of credit facility borrowing capacity percentage | 35.00% | 35.00% | |||||||||||||
Revolving Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt instrument, basis spread on variable rate | 3.50% | ||||||||||||||
Revolving Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt instrument, basis spread on variable rate | 3.50% | ||||||||||||||
Revolving Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt instrument, basis spread on variable rate | 3.00% | ||||||||||||||
Revolving Credit Facility [Member] | Base Rate [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt instrument, basis spread on variable rate | 2.50% | ||||||||||||||
Revolving Credit Facility [Member] | Base Rate [Member] | Minimum [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt instrument, basis spread on variable rate | 2.50% | ||||||||||||||
Revolving Credit Facility [Member] | Base Rate [Member] | Maximum [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt instrument, basis spread on variable rate | 2.00% | ||||||||||||||
Revolving Credit Facility [Member] | Senior Secured Term Loan Facility [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Amount of term loan facility | $ 160,000,000 | ||||||||||||||
Line of credit facility maturity date | May 23, 2022 | ||||||||||||||
Outstanding borrowings | $ 0 | ||||||||||||||
Revolving Credit Facility [Member] | Senior Secured Term Loan Facility [Member] | Senior Notes [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Amount of availability | $ 155,200,000 | ||||||||||||||
Term Loan Facility [Member] | Senior Secured Term Loan Facility [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Percentage of capital stock issued | 65.00% | 65.00% | |||||||||||||
Equipment Loan [Member] | European Operations [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt instrument, interest rate stated, percentage | 2.20% | 2.20% | |||||||||||||
European Revolving Credit Facility [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Outstanding borrowings | $ 0 | ||||||||||||||
Amount outstanding | 500,000 | € 400,000 | |||||||||||||
Amount of availability | 70,000,000 | € 59,600,000 | |||||||||||||
Percentage of management fee | 0.07% | ||||||||||||||
Debt instrument expiry date | May 22, 2022 | ||||||||||||||
European Revolving Credit Facility [Member] | Minimum [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Current borrowing capacity under line of credit | € | € 45,000,000 | 30,000,000 | |||||||||||||
Annual commitment fee | 0.50% | ||||||||||||||
European Revolving Credit Facility [Member] | Maximum [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Current borrowing capacity under line of credit | € | € 60,000,000 | € 45,000,000 | |||||||||||||
Annual commitment fee | 1.05% | ||||||||||||||
European Revolving Credit Facility [Member] | Euribor [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt instrument, basis spread on variable rate | 0.00% | ||||||||||||||
European Revolving Credit Facility [Member] | Euribor [Member] | Minimum [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt instrument, basis spread on variable rate | 1.55% | ||||||||||||||
European Revolving Credit Facility [Member] | Euribor [Member] | Maximum [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt instrument, basis spread on variable rate | 3.00% | ||||||||||||||
European Revolving Credit Facility [Member] | Equipment Loan [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt instrument expiry date | Sep. 30, 2027 | ||||||||||||||
Quarterly payment | $ 500,000 | € 400,000 | |||||||||||||
Quarterly payment, start date | Dec. 31, 2020 | Dec. 31, 2020 |
Redeemable Preferred Stock - Ad
Redeemable Preferred Stock - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | Nov. 07, 2018 | Aug. 30, 2017 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2017 | Dec. 31, 2019 |
Temporary Equity [Line Items] | ||||||||
Temporary equity, stock issued during period, shares, new issues | 150,000 | 150,000 | 150,000 | 150,000 | ||||
Proceeds from issuance of redeemable preferred shares | $ 150,000 | |||||||
Temporary equity, par value | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | ||||
Preferred stock, dividend rate, percentage | 9.00% | 9.00% | 9.00% | 9.00% | ||||
Convertible Preferred Stock, Redemption Value | $ 300,000 | $ 300,000 | ||||||
Preferred stock redemption extended date | Sep. 14, 2025 | Sep. 14, 2025 | ||||||
Issuance costs | $ 3,700 | |||||||
Proceeds from issuance of redeemable preferred shares, net of issuance costs | 146,300 | |||||||
Embedded derivative liability | 10,900 | |||||||
Adjusted proceeds from issuance of redeemable preferred shares | $ 135,500 | |||||||
Redemption period | 7 years | |||||||
Carrying value of redeemable preferred stock | $ 17,200 | |||||||
Accumulated accretion value net of modification adjustment | $ 39,100 | |||||||
Redeemable preferred stock | 174,597 | 174,597 | $ 160,980 | |||||
Convertible Preferred Stock Redemption Period Two [Member] | ||||||||
Temporary Equity [Line Items] | ||||||||
Convertible Preferred Stock, Redemption Value | $ 300,000 | $ 300,000 | ||||||
Convertible preferred stock, redemption value percent of stated value | 200.00% | 200.00% | ||||||
Convertible preferred stock, face value | $ 150,000 | $ 150,000 | ||||||
Common stock, shares issued upon conversion of preferred stock | 5,300,000 | 5,300,000 | ||||||
Series A Redeemable Preferred Stock [Member] | ||||||||
Temporary Equity [Line Items] | ||||||||
Temporary equity, stock issued during period, shares, new issues | 140,202 | |||||||
Temporary equity, par value | $ 0.01 | |||||||
Temporary equity, liquidation preference per share | 1,000 | |||||||
Temporary equity, conversion price | $ 28.162 | |||||||
Preferred stock, dividend rate, percentage | 9.00% | |||||||
Convertible preferred stock, threshold stock price trigger | $ 84.49 | |||||||
Series B Redeemable Preferred Stock [Member] | ||||||||
Temporary Equity [Line Items] | ||||||||
Temporary equity, stock issued during period, shares, new issues | 9,798 |
European Non-Controlling Rede_3
European Non-Controlling Redeemable Equity - Additional Information (Detail) $ in Millions | 9 Months Ended | ||
Sep. 30, 2020USD ($) | Sep. 30, 2020€ / shares | May 30, 2017 | |
Redeemable Noncontrolling Interest [Line Items] | |||
Percentage of voting interest acquired | 99.90% | 92.30% | |
Domination and Profit Loss Transfer Agreement [Member] | |||
Redeemable Noncontrolling Interest [Line Items] | |||
Share price per share | € 62.18 | ||
Guaranteed annual dividend for each share that is not tendered | € 3.23 | ||
Guaranteed annual statutory rate for each share that is tendered | 4.12% | ||
Non-controlling interests with carrying value reclassified from stockholders' equity to mezzanine equity | $ | $ 51.9 |
European Non-Controlling Rede_4
European Non-Controlling Redeemable Equity - Summary of Redeemable Noncontrolling Interests (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Redeemable Noncontrolling Interest [Line Items] | |||||
Dividends accrued | $ 106 | $ 113 | $ 152 | $ 496 | |
Redeemable Noncontrolling Interest [Member] | |||||
Redeemable Noncontrolling Interest [Line Items] | |||||
Beginning balance | 6,525 | $ 13,849 | $ 13,849 | ||
Dividends accrued | 152 | 566 | |||
Dividends paid | (45) | (848) | |||
Translation adjustment | (71) | (361) | |||
Purchase of shares | (4,981) | (6,681) | |||
Ending Balance | $ 1,580 | $ 1,580 | $ 6,525 |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Earnings Per share, Basic and Diluted (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Basic Earnings Per Share: | ||||
Net income (loss) | $ 11,146 | $ (6,631) | $ (222,154) | $ 2,589 |
Less: Redeemable preferred stock dividends and accretion | (8,056) | (7,587) | (23,811) | (23,275) |
Less: European non-controlling redeemable equity dividend | (106) | (113) | (152) | (496) |
Basic numerator | $ 2,984 | $ (14,331) | $ (246,117) | $ (21,182) |
Basic earnings (loss) per share | $ 0.12 | $ (0.57) | $ (9.66) | $ (0.84) |
Weighted average shares outstanding – Basic | 25,592 | 25,127 | 25,466 | 25,089 |
Diluted Earnings Per Share: | ||||
Net income (loss) | $ 11,146 | $ (6,631) | $ (222,154) | $ 2,589 |
Less: Redeemable preferred stock dividends and accretion | (8,056) | (7,587) | (23,811) | (23,275) |
Less: European non-controlling redeemable equity dividend | (106) | (113) | (152) | (496) |
Diluted numerator | $ 2,984 | $ (14,331) | $ (246,117) | $ (21,182) |
Diluted earnings (loss) per share | $ 0.12 | $ (0.57) | $ (9.66) | $ (0.84) |
Weighted average shares outstanding – Basic | 25,592 | 25,127 | 25,466 | 25,089 |
Dilutive effect of common share equivalents | 118 | |||
Weighted average shares outstanding – Diluted | 25,710 | 25,127 | 25,466 | 25,089 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |||||
Income tax provision (benefit) | $ (3,898) | $ (4,785) | $ 7,700 | $ (11,111) | $ 7,699 |
Effective income tax rate | (53.80%) | 41.90% | 75.00% | 4.80% |
Leases - Additional Information
Leases - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2020 | |
Operating Leased Assets [Line Items] | |
Lessee, operating lease, option to extend | Certain leases include options to extend the lease term for up to ten years |
Minimum [Member] | |
Operating Leased Assets [Line Items] | |
Lessee, operating lease, term of contract | 1 year |
Maximum [Member] | |
Operating Leased Assets [Line Items] | |
Lessee, operating lease, term of contract | 9 years |
Leases - Schedule of Lease Expe
Leases - Schedule of Lease Expense, Cash Flow, Operating and Finance Lease Assets and Liabilities, Average Lease Term and Average Discount Rate (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Finance lease expense: | |||||
Amortization of right-of-use assets | $ 615 | $ 548 | $ 906 | $ 1,551 | |
Interest on lease liabilities | 43 | 34 | 63 | 65 | |
Operating lease expense | 1,699 | 846 | 2,534 | 2,560 | |
Total lease expense | 2,357 | 1,428 | 3,503 | 4,176 | |
Cash paid for amounts included in the measurement of lease liabilities: | |||||
Operating cash outflows from finance leases | 43 | 34 | 63 | 65 | |
Operating cash outflows from operating leases | 1,818 | 821 | 2,692 | 2,484 | |
Financing cash outflows from finance leases | 467 | 381 | 723 | 1,035 | |
Right-of-use assets obtained in exchange for finance lease liabilities, net of terminations and disposals | 180 | 1,292 | 252 | 1,803 | |
Right-of-use assets obtained in exchange for operating lease liabilities, net of terminations and disposals | 422 | $ 12 | 637 | $ 18,353 | |
Operating leases: | |||||
Other non-current assets | 14,087 | 14,087 | $ 15,201 | ||
Accrued liabilities | (2,926) | (2,926) | (2,949) | ||
Other non-current liabilities | (12,120) | (12,120) | (13,282) | ||
Total operating lease liabilities | (15,046) | (15,046) | (16,231) | ||
Property and equipment gross | 5,299 | 5,299 | 4,821 | ||
Accumulated depreciation | (3,024) | (3,024) | (2,118) | ||
Property and equipment, net | 2,275 | 2,275 | 2,703 | ||
Current portion of long-term debt | (893) | (893) | (1,023) | ||
Long-term debt | (1,793) | (1,793) | (2,045) | ||
Total finance lease liabilities | $ (2,686) | $ (2,686) | $ (3,068) | ||
Weighted-average remaining lease term - finance leases (years) | 3 years 10 months 24 days | 3 years 10 months 24 days | 4 years 1 month 6 days | ||
Weighted-average remaining lease term - operating leases (years) | 6 years 1 month 6 days | 6 years 1 month 6 days | 6 years 4 months 24 days | ||
Weighted-average discount rate - finance leases | 3.00% | 3.00% | 2.90% | ||
Weighted-average discount rate - operating leases | 3.80% | 3.80% | 3.90% |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Rental Payments For Finance and Operating Leases (Detail) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
Three remaining months of 2020 | $ 151 | |
Finance Leases, 2021 | 1,083 | |
Finance Leases, 2022 | 771 | |
Finance Leases, 2023 | 364 | |
Finance Leases, 2024 | 122 | |
Finance Leases, Thereafter | 432 | |
Finance Leases, Total | 2,923 | |
Finance Leases, Less: Imputed interest | (237) | |
Finance Leases, Total lease liabilities, net of interest | 2,686 | $ 3,068 |
Three remaining months of 2020 | 1,798 | |
Operating Leases, 2021 | 3,216 | |
Operating Leases, 2022 | 2,672 | |
Operating Leases, 2023 | 2,316 | |
Operating Leases, 2024 | 2,094 | |
Operating Leases, Thereafter | 4,958 | |
Operating Leases, Total | 17,054 | |
Operating Leases, Less: Imputed interest | (2,008) | |
Operating Leases, Total lease liabilities, net of interest | $ 15,046 | $ 16,231 |
Retirement Plans - Additional I
Retirement Plans - Additional Information (Detail) $ in Millions | 9 Months Ended |
Sep. 30, 2020USD ($)Age | |
Compensation And Retirement Disclosure [Abstract] | |
Age for benefits | Age | 65 |
Payments to retirees | $ 1.1 |
Anticipated benefit payments | $ 1.3 |
Retirement Plans - Schedule of
Retirement Plans - Schedule of Net Benefit Costs (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Compensation And Retirement Disclosure [Abstract] | ||||
Interest cost | $ 251 | $ 286 | $ 753 | $ 858 |
Net amortization | 72 | 52 | 216 | 156 |
Net periodic pension cost | $ 323 | $ 338 | $ 969 | $ 1,014 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) $ in Millions | May 16, 2019shares | Sep. 30, 2020USD ($)shares | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($)PerformanceMetricshares | Sep. 30, 2019USD ($) |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Authorizes issuance of common stock | 4,350,000 | 4,350,000 | |||
Number of shares available for grant | 600,000 | 600,000 | |||
Maximum shares that may be used as full value awards | 1,200,000 | ||||
Stock-based compensation expense | $ | $ 0.5 | $ 1.8 | $ 1.2 | $ 3.7 | |
Number of performance metrics associated with award | PerformanceMetric | 0 | ||||
Amount of unrecognized stock-based compensation expense | $ | $ 3.7 | $ 3.7 | |||
Weighted average period for recognition | 1 year 7 months 6 days | ||||
Restricted Stock Units [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 3 years | ||||
Grants in period | 634,317 | ||||
Restricted Stock Units [Member] | President and Chief Executive Officer [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Grants in period | 333,333 | ||||
Performance Shares Unit [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 3 years | ||||
Grants in period | 948,636 | ||||
PSU awards earnings expected target | 200.00% | ||||
Performance Shares Unit [Member] | President and Chief Executive Officer [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 3 years | ||||
Grants in period | 666,667 | ||||
Shares awarded under the plan, vesting description | (a) 666,667 PSUs at target, vesting in three approximately equal installments, to the extent the performance metrics are satisfied, during each of three performance periods and (b) 333,333 RSUs, vesting in approximately equal installments on February 28, 2020, 2021 and 2022; (ii) a 2019-2021 PSU grant, with the target number of 316,832 PSUs, which will vest to the extent the performance metrics are satisfied; and (iii) a 2019 RSU grant of 158,416 RSUs, vesting in approximately equal installments on February 28, 2020, 2021 and 2022. The PSU awards may be earned at up to 200 percent of target depending on the level of achievement of the performance metrics. | ||||
2019-2021 PSU [Member] | President and Chief Executive Officer [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Grants in period | 316,832 | ||||
2019 RSU [Member] | President and Chief Executive Officer [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Grants in period | 158,416 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Restricted Stock Unit and Restricted Performance Stock Unit Activity (Detail) | 9 Months Ended |
Sep. 30, 2020$ / sharesshares | |
Number of Options Outstanding | |
Number of Options Outstanding, Beginning balance (in shares) | shares | 50,250 |
Forfeited or expired (in shares) | shares | (26,250) |
Number of Options Outstanding, Ending balance (in shares) | shares | 24,000 |
Options vested or expected to vest, Outstanding (in shares) | shares | 24,000 |
Weighted Average Exercise Price | |
Weighted Average Exercise Price, Beginning balance (in dollars per share) | $ / shares | $ 18.86 |
Forfeited or expired (in dollars per share) | $ / shares | 17.46 |
Weighted Average Exercise Price, Ending balance (in dollars per share) | $ / shares | 20.39 |
Vested or expected to vest (in dollar per share) | $ / shares | $ 20.39 |
Restricted Stock Units [Member] | |
Number of Awards | |
Number of Awards, Beginning balance (in shares) | shares | 1,047,256 |
Granted (in shares) | shares | 634,317 |
Settled (in shares) | shares | (401,723) |
Forfeited or expired (in shares) | shares | (195,540) |
Number of Awards, Ending balance (in shares) | shares | 1,084,310 |
Number of Awards, vested or expected to vest, Outstanding (in shares) | shares | 981,873 |
Weighted Average Grant Date Fair Value | |
Weighted Average Grant Date Fair Value, Beginning balance (in dollars per share) | $ / shares | $ 5.39 |
Granted (in dollars per share) | $ / shares | 2.87 |
Settled (in dollars per share) | $ / shares | 6.14 |
Forfeited or expired (in dollars per share) | $ / shares | 4.27 |
Weighted Average Grant Date Fair Value, Ending balance (in dollars per share) | $ / shares | 3.84 |
Vested or expected to vest (in dollar per share) | $ / shares | $ 3.82 |
Performance Shares Unit [Member] | |
Number of Awards | |
Number of Awards, Beginning balance (in shares) | shares | 1,548,793 |
Granted (in shares) | shares | 948,636 |
Settled (in shares) | shares | (245,713) |
Forfeited or expired (in shares) | shares | (334,141) |
Number of Awards, Ending balance (in shares) | shares | 1,917,575 |
Number of Awards, vested or expected to vest, Outstanding (in shares) | shares | 323,862 |
Weighted Average Grant Date Fair Value | |
Weighted Average Grant Date Fair Value, Beginning balance (in dollars per share) | $ / shares | $ 7.17 |
Granted (in dollars per share) | $ / shares | 3.25 |
Settled (in dollars per share) | $ / shares | 5.05 |
Forfeited or expired (in dollars per share) | $ / shares | 7.44 |
Weighted Average Grant Date Fair Value, Ending balance (in dollars per share) | $ / shares | 5.28 |
Vested or expected to vest (in dollar per share) | $ / shares | $ 7.79 |
Receivables Factoring - Additio
Receivables Factoring - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Oct. 15, 2020 | Dec. 31, 2019 | |
Accounts Receivable [Line Items] | ||||||
Trade receivables | $ 169,800,000 | $ 80,600,000 | $ 307,400,000 | $ 272,400,000 | ||
Factoring fees | 400,000 | $ 200,000 | 800,000 | $ 800,000 | ||
Collective limit under factoring arrangements | 115,900,000 | 115,900,000 | $ 117,300,000 | |||
Factored receivables yet not collected | $ 101,400,000 | $ 101,400,000 | $ 49,600,000 | |||
Subsequent Event [Member] | ||||||
Accounts Receivable [Line Items] | ||||||
Collective limit under factoring arrangements | $ 105,900,000 | |||||
North America [Member] | Subsequent Event [Member] | ||||||
Accounts Receivable [Line Items] | ||||||
Due to decrease In North American factoring limit | $ 10,000,000 |
Restructuring - Additional Info
Restructuring - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Sep. 30, 2020 | |
Automotive Racing Market Segment [Member] | |||||
Restructuring Cost And Reserve [Line Items] | |||||
Non-cash restructuring charge | $ 3.4 | ||||
Restructuring charge, write-down of after-market inventory to salvage value | 1.3 | ||||
Restructuring charge, employee severance | $ 0.4 | 1 | |||
Restructuring charges, contract terminations costs | 0.5 | ||||
Restructuring severance accrual | 1.5 | $ 1.5 | |||
Automotive Racing Market Segment [Member] | Cost of Sales [Member] | |||||
Restructuring Cost And Reserve [Line Items] | |||||
Non-cash restructuring charge | 2.8 | ||||
Automotive Racing Market Segment [Member] | Selling, General and Administrative Expense [Member] | |||||
Restructuring Cost And Reserve [Line Items] | |||||
Restructuring charge, employee severance | $ 0.6 | ||||
Fayetteville, Arkansas Manufacturing Facility [Member] | |||||
Restructuring Cost And Reserve [Line Items] | |||||
Restructuring charge, employee severance | $ 1.6 | ||||
Restructuring severance accrual | $ 0.3 | 0.3 | |||
Accelerated depreciation | 7.6 | ||||
Restructuring charge, write-down of inventory to net salvage value | 3.2 | ||||
Restructuring charge, accelerated amortization of right of use assets | 0.6 | ||||
Relocation costs | $ 1.8 | $ 2.3 | |||
Relocation costs recognition period | 3 months | ||||
Additional other costs | $ 0.4 | ||||
Fayetteville, Arkansas Manufacturing Facility [Member] | Cost of Sales [Member] | |||||
Restructuring Cost And Reserve [Line Items] | |||||
Non-cash restructuring charge | $ 13 |