Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Oct. 30, 2015 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | STONERIDGE INC | |
Entity Central Index Key | 1,043,337 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Trading Symbol | sri | |
Entity Common Stock Shares Outstanding | 27,911,948 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2015 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2,015 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 29,289 | $ 43,021 |
Accounts receivable, less reserves of $1,057 and $2,017, respectively | 112,595 | 105,102 |
Inventories, net | 71,381 | 71,253 |
Prepaid expenses and other current assets | 22,273 | 26,135 |
Total current assets | 235,538 | 245,511 |
Long-term assets: | ||
Property, plant and equipment, net | 83,258 | 85,311 |
Other assets: | ||
Intangible assets, net | 35,833 | 56,637 |
Goodwill | 1,000 | 1,078 |
Investments and other long-term assets, net | 10,237 | 10,214 |
Total long-term assets | 130,328 | 153,240 |
Total assets | 365,866 | 398,751 |
Current liabilities: | ||
Current portion of debt | 17,913 | 19,655 |
Accounts payable | 59,012 | 58,593 |
Accrued expenses and other current liabilities | 39,372 | 42,066 |
Total current liabilities | 116,297 | 120,314 |
Long-term liabilities: | ||
Revolving credit facility | 100,000 | 100,000 |
Long-term debt, net | 4,982 | 10,651 |
Deferred income taxes | 41,261 | 50,006 |
Other long-term liabilities | 3,404 | 3,974 |
Total long-term liabilities | $ 149,647 | $ 164,631 |
Shareholders' equity: | ||
Preferred Shares, without par value, 5,000 shares authorized, none issued | ||
Common Shares, without par value, 60,000 shares authorized, 28,907 and 28,853 shares issued and 27,912 and 28,221 shares outstanding at September 30, 2015 and December 31, 2014, respectively, with no stated value | ||
Additional paid-in capital | $ 198,090 | $ 192,892 |
Common Shares held in treasury, 995 and 632 shares at September 30, 2015 and December 31, 2014, respectively, at cost | (4,208) | (1,284) |
Accumulated deficit | (38,189) | (54,879) |
Accumulated other comprehensive loss | (70,044) | (45,473) |
Total Stoneridge Inc. shareholders' equity | 85,649 | 91,256 |
Noncontrolling interest | 14,273 | 22,550 |
Total shareholders' equity | 99,922 | 113,806 |
Total liabilities and shareholders' equity | $ 365,866 | $ 398,751 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Statement Of Financial Position [Abstract] | ||
Accounts receivable, reserves (in dollars) | $ 1,057 | $ 2,017 |
Preferred shares, authorized | 5,000,000 | 5,000,000 |
Preferred shares, no par value | ||
Preferred shares, issued | 0 | 0 |
Common shares, authorized | 60,000,000 | 60,000,000 |
Common shares, no par value | ||
Common shares, issued | 28,907,000 | 28,853,000 |
Common shares, outstanding | 27,912,000 | 28,221,000 |
Common shares held in treasury, shares | 995,000 | 632,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Income Statement [Abstract] | ||||
Net sales | $ 162,057 | $ 170,338 | $ 490,171 | $ 493,768 |
Costs and expenses: | ||||
Cost of goods sold | 116,912 | 120,788 | 355,432 | 347,795 |
Selling, general and administrative | 26,331 | 31,204 | 85,555 | 93,587 |
Design and development | 9,867 | 10,389 | 29,696 | 31,916 |
Goodwill impairment | (5,802) | 23,498 | ||
Operating income (loss) | 8,947 | 13,759 | 19,488 | (3,028) |
Interest expense, net | 1,747 | 5,057 | 4,683 | 15,059 |
Equity in earnings of investee | (160) | (205) | (492) | (587) |
Loss on early extinguishment of debt | 920 | 920 | ||
Other (income) expense, net | (83) | 23 | (343) | 2,268 |
Income (loss) before income taxes from continuing operations | 7,443 | 7,964 | 15,640 | (20,688) |
Provision (benefit) for income taxes from continuing operations | 32 | (1,174) | (202) | (790) |
Income (loss) from continuing operations | 7,411 | 9,138 | 15,842 | (19,898) |
Discontinued operations: | ||||
Income (loss) from discontinued operations, net of tax | (1,560) | 86 | ||
Loss on disposal, net of tax | (113) | (6,548) | (226) | (7,781) |
Loss from discontinued operations | (113) | (8,108) | (226) | (7,695) |
Net income (loss) | 7,298 | 1,030 | 15,616 | (27,593) |
Net income (loss) attributable to noncontrolling interest | (69) | 1,160 | (1,074) | (7,039) |
Net income (loss) attributable to Stoneridge, Inc. | $ 7,367 | $ (130) | $ 16,690 | $ (20,554) |
Earnings (loss) per share attributable to continuing operations attributable to Stoneridge, Inc.: | ||||
Basic (in dollars per share) | $ 0.27 | $ 0.30 | $ 0.62 | $ (0.48) |
Diluted (in dollars per share) | 0.27 | 0.29 | 0.61 | (0.48) |
Earnings (loss) per share attributable to discontinued operations: | ||||
Basic (in dollars per share) | (0.01) | (0.30) | (0.01) | (0.28) |
Diluted (in dollars per share) | (0.01) | (0.29) | (0.01) | (0.28) |
Earnings (loss) per share attributable to Stoneridge, Inc.: | ||||
Basic (in dollars per share) | 0.26 | 0 | 0.61 | (0.76) |
Diluted (in dollars per share) | $ 0.26 | $ 0 | $ 0.60 | $ (0.76) |
Weighted-average shares outstanding: | ||||
Basic (in shares) | 27,444,221 | 26,953,596 | 27,299,319 | 26,913,880 |
Diluted (in shares) | 28,008,209 | 27,554,139 | 27,927,042 | 26,913,880 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Statement Of Other Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 7,298 | $ 1,030 | $ 15,616 | $ (27,593) |
Less: income (loss) attributable to noncontrolling interest | (69) | 1,160 | (1,074) | (7,039) |
Net income (loss) attributable to Stoneridge, Inc. | 7,367 | (130) | 16,690 | (20,554) |
Other comprehensive loss, net of tax attributable to Stoneridge, Inc.: | ||||
Foreign currency translation adjustments | (12,557) | (12,528) | (24,497) | (6,164) |
Benefit plan liability | (45) | |||
Unrealized loss on derivatives | (236) | (144) | (29) | (49) |
Other comprehensive income (loss), net of tax attributable to Stoneridge, Inc. | (12,793) | (12,672) | (24,571) | (6,213) |
Comprehensive income (loss) attributable to Stoneridge, Inc. | $ (5,426) | $ (12,802) | $ (7,881) | $ (26,767) |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
OPERATING ACTIVITIES: | ||
Net income (loss) | $ 15,616 | $ (27,593) |
Adjustments to reconcile net income (loss) to net cash provided by (used for) operating activities: | ||
Depreciation | 14,843 | 19,106 |
Amortization, including accretion of debt discount | 3,000 | 4,484 |
Deferred income taxes | 202 | (1,003) |
Earnings of equity method investee | (492) | (587) |
Loss on sale of fixed assets | 55 | 15 |
Share-based compensation expense | 5,746 | 3,799 |
Goodwill impairment | 23,498 | |
Loss on disposal of business | 226 | 7,781 |
Loss on early extinguishment of debt | 920 | |
Changes in operating assets and liabilities, net of effect of business acquisition: | ||
Accounts receivable, net | (17,768) | (21,563) |
Inventories, net | (15,028) | (8,285) |
Prepaid expenses and other | (703) | (1,615) |
Accounts payable | 9,459 | 912 |
Accrued expenses and other | 1,977 | (715) |
Net cash provided by (used for) operating activities | 17,133 | (846) |
INVESTING ACTIVITIES: | ||
Capital expenditures | (23,521) | (19,772) |
Proceeds from sale of fixed assets | 53 | 99 |
Change in restricted cash | (52,692) | |
Payment for working capital adjustment related to segment sale | (1,230) | |
Proceeds from sale of Wiring business | 71,386 | |
Business acquisitions | (469) | (1,022) |
Net cash used for investing activities | (25,167) | (2,001) |
FINANCING ACTIVITIES: | ||
Extinguishment of senior notes | (17,500) | |
Premium related to early extinguishment of senior notes | (525) | |
Proceeds from issuance of debt | 19,116 | 20,462 |
Repayments of debt | (20,015) | (15,953) |
Noncontrolling interest shareholder distribution | (1,083) | |
Other financing costs | (49) | (1,499) |
Repurchase of Common Shares to satisfy employee tax withholding | (2,854) | (765) |
Net cash used for financing activities | (3,802) | (16,863) |
Effect of exchange rate changes on cash and cash equivalents | (1,896) | (2,165) |
Net change in cash and cash equivalents | (13,732) | (21,875) |
Cash and cash equivalents at beginning of period | 43,021 | 62,825 |
Cash and cash equivalents at end of period | 29,289 | 40,950 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest | 4,539 | 11,441 |
Cash paid for income taxes, net | 1,840 | 2,285 |
Supplemental disclosure of non-cash financing activities: | ||
Change in fair value of interest rate swap | (468) | |
Bank payment of vendor payables under short-term debt obligations | $ 3,286 | $ 3,617 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2015 | |
Basis of Presentation [Abstract] | |
Basis of Presentation | (1) Basis of Presentation The accompanying condensed consolidated financial statements have been prepared by Stoneridge, Inc. (the “Company”) without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). The information furnished in the condensed consolidated financial statements includes normal recurring adjustments and reflects all adjustments, which are, in the opinion of management, necessary for a fair presentation of such financial statements. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles have been condensed or omitted pursuant to the SEC's rules and regulations. The results of operations for the three and nine months ended September 30, 2015 are not necessarily indicative of the results to be expected for the full year. While the Company believes that the disclosures are adequate to make the information presented not misleading, it is suggested that these condensed consolidated financial statements be read in conjunction with the audited consolidated financial statements and the notes thereto included in the Company's 2014 Form 10-K. T he Company entered into an asset purchase agreement to divest its Wiring business including substantially all of its assets and liabilities during the second quarter of 2014 . The sale was completed on August 1, 2014. The Wiring business has been classified as discontinued operations for all periods presented in the condensed consolidated financial statements. Accordingly, the Wiring business is excluded from both continuing operations and segment results for all periods presented. The Wiring business designed and manufactured wiring harness products and assembled instruments panels for sale principally to the commercial, agricultural and off-highway vehicle markets. |
Recently Issued Accounting Stan
Recently Issued Accounting Standards | 9 Months Ended |
Sep. 30, 2015 | |
Recently Issued Accounting Standards [Abstract] | |
Recently Issued Accounting Standards | (2) Recently Issued Accounting Standards Accounting Standards Not Yet Adopted In September 2015, t he FASB issued ASU 2015 – 16, “Business Combinations,” which simplifies the accounting for measurement-period adjustments related to business combinations. ASU 2015-16 requires that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The amendments in the ASU require that the acquirer record, in the same period’s financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. The amendment is effective for fiscal years beginning after December 15, 2015, including interim periods within those fiscal years and is to be applied prospectively to adjustments to provisional amounts that occur after the effective date of this ASU with earlier application permitted for financial statements that have not been issued. The Company will adopt this standard as of January 1, 2016, which is not expected to have a material impact on the Company’s condensed consolidated financial statements or disclosures. In January 2015, the F inancial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2015 – 01 “Income Statement – Extraordinary and Unusual Items,” that eliminates the concept of extraordinary items and their segregation from the results of ordinary operations and expands presentation and disclosure guidance to include items that are both unusual in nature and occur infrequently. The new accounting standard is effective for fiscal years beginning after December 15, 2015. The Company will adopt this standard as of January 1, 2016, which is not expected to have a material impact on the Company’s condensed consolidated financial statements or disclosures. In June 2014, the FASB issued ASU 2014 – 12 “ Stock Compensation - Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period,” that requires performance targets that could be achieved after the requisite service period be treated as performance conditions that affect the vesting of the award. The new accounting standard is effective for fiscal years beginning after December 15, 2015. The Company will adopt this standard as of January 1, 2016, which is not expected to have an impact on the Company’s condensed consolidated financial statements or disclosures. In May 2014, the FASB issued ASU 2014-09 “Revenue from Contracts with Customers , ” which is the new comprehensive revenue recognition standard that will supersede existing revenue recognition guidance under U.S. GAAP. The standard's core principle is that a company will recognize revenue when it transfers promised goods or services to a customer in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. To achieve this principle, an entity identifies the contract with a customer, identifies the separate performance obligations in the contract, determines the transaction price, allocates the transaction price to the separate performance obligations and recognizes revenue when each separate performance obligation is satisfied. This ASU allows for both retrospective and prospective methods of adoption . In July 2015, the FASB approved a one-year deferral of the effective date of the standard. As such, the new standard will become effective for annual and interim periods beginning after December 15, 2017 with early adoption on the original effective date permitted. The Company is currently evaluating the impact of adopting this standard on its condensed consolidated financial statements. Accounting Standards Adopted In April 2015, the FASB issued ASU 2015 - 03, “Simplifying the Presentation of Debt Issuance Costs,” which amends the current presentation of debt issuance costs in the balance sheet . ASU 2015-03 requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts, instead of as an asset. The recognition and measurement of debt issuance costs are not affected by the amendments in this ASU. The guidance in ASU 2015-03 did not address the presentation or subsequent measurement of debt issuance costs related to line of credit arrangements. Given the absence of authoritative guidance, in June 2015 the FASB issued ASU 2015-15, “Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements,” which states that the SEC will not object to an entity deferring and presenting debt issuance costs related to revolving credit arrangements as an asset and subsequently amortizing them. The se amendment s are to be applied retrospectively and are effective for public companies for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015, with early adoption permitted. As permitted by the ASU, the Company adopted these standards in the third quarter of 2015, which had no impact on the Company’s condensed consolidated financial statements. The Company has elected to continue to present deferred financing costs related to its revolving credit facility, which had balances of $1,525 and $1,767 at September 30, 2015 and December 31, 2014, respectively, within long-term assets in the Company’s condensed consolidated balance sheets . |
Discontinued Operations
Discontinued Operations | 9 Months Ended |
Sep. 30, 2015 | |
Discontinued Operations [Abstract] | |
Discontinued Operations | (3) Discontinued Operations Wiring Business On May 26, 2014, the Company entered into an asset purchase agreement to sell substantially all of the assets and liabilities of the former Wiring segment to Motherson Sumi Systems Ltd., an India-based manufacturer of diversified products for the global automotive industry and a limited company incorporated under the laws of the Republic of India, a nd MSSL (GB) LIMITED, a limited company incorporated under the laws of the United Kingdom (collectively, “Motherson”) , for $65 ,700 in cash and the assumption of certain related liabilities of the Wiring business. On August 1, 2014, the Company completed the sale of substantially all of the assets and liabilities of its Wiring business to Motherson for $71,386 in cash that consisted of the stated purchase price and estimated working capital on the closing date. The final purchase price was subject to post-closing working capital and other adjustments . Upon the final resolution of the working capital and other adjustments in the second quarter of 2015, the Company returned $1,230 in cash to Motherson. The Company also entered into short-term transition services agreement s with Motherson substantially all of which concluded in the second quarter of 2015 associated with information systems, accounting, administrative , occupancy and support services as well as contract manufacturing and production support in Estonia. The Company had post-disposition sales t o the Wiring business acquired by Motherson of $7,299 and $21,574 for the three and nine months ended September 30, 2015, respectively . The Company had p ost-disposition purchases from the Wiring business acquired by Motherson of $242 and $583 for the three and nine months ended September 30, 2015, respectively . The Company had post-disposition sales (for the period August 1, 2014 through September 30, 2014) to the Wiring business acquired by Motherson of $5,244 for the three and nine months ended September 30, 2014. The Company had post-disposition purchases from the Wiring business acquired by Motherson of $587 for the three and nine months ended September 30, 2014. The following tables display summarized activity in our condensed consolidated statements of operations for discontinued operations related to the Wiring business: Three months ended Nine months ended September 30, September 30, Net sales $ - $ $ - $ Cost of goods sold (B) - - Selling, general and administrative (B) - - Interest expense, net - - Other expense, net - - Loss from operations of discontinued operations before income taxes (A) (B) - - Income tax benefit on discontinued operations - - Income (loss) from discontinued operations, net of tax (C) - - Loss on disposal (C) Income tax (provision) benefit on gain (loss) on disposal Loss on disposal, net of tax Loss from discontinued operations $ $ $ $ (A) The operations of the Wiring business were included only for the one and seven months ended July 31, 2014 as the sale was completed on August 1, 2014. (B) The assets and liabilities of the Wiring business were reclassified to held for sale effective May 26, 2014. Accordingly, depreciation and amortization for the Wiring assets were not recorded after that date. (C) Included in loss on disposal for the three months ended September 30, 2015 and 2014 were transaction costs of $94 and $377 , respectively, and $192 and $ 1,274 for the nine months ended September 30, 2015 and 2014, respectively. The loss on disposal also includes a working capital and other adjustments of $ 24 and $38 for the three and nine months ended September 30, 2015, respectively . I n addition, the loss on disposal included $2,734 in previously deferred foreign currency translation for the three and nine months ended September 30, 2014. Three months Nine months ended September 30, ended September 30, Depreciation and amortization $ - $ Capital expenditures Pre-disposition i ntercompany sales to the Wiring business (for the period January 1, 2014 through July 31, 2014) were $2,158 and $17,448 for the three and nine months ended September 30, 201 4, respectively. Pre-disposition intercompany purchases from the Wiring business were $481 and $4,025 for the three and nine months ended September 30, 2014, respectively. |
Goodwill
Goodwill | 9 Months Ended |
Sep. 30, 2015 | |
Goodwill [Abstract] | |
Goodwill | (4) Goodwill The Company conducts its annual goodwill impairment test on October 1. During the second quarter of 2014, however, indicators of potential impairment for its majority owned subsidiary, PST Eletrônica Ltda. (“PST”) required the Company to conduct an interim impairment test. Those indicators included a decline in recent operating results and lower growth expectations primarily due to the weakening of the Brazilian economy and automotive market. In accordance with ASC 350, the Company completed “step one” of the impairment analysis and concluded that, as of June 30, 2014, the fair value of the PST reportable segment was below its carrying value, including goodwill. In “step one” the Company used an income approach to estimate the fair value of PST. The income approach used a discounted cash flow valuation technique which incorporated the Company's projected future estimates of after-tax cash flows attributable to its future growth rates, terminal value amounts and the weighted average cost of capital. As a result, “step two” of the impairment test was initiated in accordance with ASC 350. Due to its time intensive nature, the “step two” analysis was not completed until the third quarter ended September 30, 2014. In accordance with ASC 350, the Company recorded its best estimate of $29,300 as a non-cash goodwill impairment charge (of which $6,436 was attributable to noncontrolling interest) as of June 30, 2014, which was included in the Company’s condensed consolidated statements of operations. Based on the Company’s completed “step two” analysis in the third quarter of 2014, the final goodwill impairment as of June 30, 2014 was $23,498 (of which $5,162 was attributable to noncontrolling interest). As such, the Company recorded an adjustment to reduce the goodwill impairment by $5,802 (of which $1,274 was attributable to noncontrolling interest) as of September 30, 2014 which was included in the Company’s condensed consolidated statements of operations for the three months ended September 30, 2014. The “step two” of the PST goodwill impairment test used the following methodologies in determining fair value. Buildings and machinery were valued at an estimated replacement cost for an asset of comparable age and condition. PST finite lived identified intangible assets are customer relationships, tradenames and technology. Customer relationships were valued using an excess earnings method, using various inputs such as the estimated customer attrition rate, future earnings forecast, the amount of contributory asset charges, and a discount rate. Tradenames and technology intangibles are valued using a relief from royalty method, which is based upon comparable market royalty rates for tradenames of similar value. Other working capital items are generally recorded at carrying value, unless there were known conditions that would impact the ultimate settlement amount of a particular item. As a result of the Company’s annual goodwill impairment testing in the fourth quarter of 2014, the remaining PST goodwill balance was written-off due to significantly lower sales and earnings growth expectations which were primarily a result of lower forecasted growth in the Brazilian economy and automotive market. The fair value measurement of the reporting unit under the “step one” analysis and the “step two” analysis (a non-recurring fair value measure) in their entirety are classified as Level 3 inputs. The estimates and assumptions underlying the fair value calculations used in the Company's impairment test are uncertain by their nature and can vary significantly from actual results. Factors that management must estimate include, but are not limited to, industry and market conditions, sales volume and pricing, raw material costs, capital expenditures, working capital changes, cost of capital, debt-equity mix and tax rates. The estimates and assumptions that most significantly affect the fair value calculation are sales volume and the associated cash flow assumptions, market growth and weighted average cost of capital. The estimates and assumptions used in the estimate of fair value were consistent with those the Company uses in its internal planning. The carrying amount of goodwill related to our Electronics segment decreased by $78 for the nine months ended September 30, 2015 to $1,000 due to foreign currency translation. The change in the carrying amount of goodwill for the nine months ended September 30, 2014 was as follows: Electronics PST Total Balance at January 1, 2014 $ $ $ Acquisition of business - Goodwill impairment charge - Currency translation Balance at September 30, 2014 $ $ $ |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2015 | |
Inventories [Abstract] | |
Inventories | (5) Inventories Inventories are valued at the lower of cost (using either the first-in, first-out (“FIFO”) or average cost methods) or market. The Company evaluates and adjusts as necessary its excess and obsolescence reserve on a quarterly basis. Excess inventories are quantities of items that exceed anticipated sales or usage for a reasonable period. The Company has guidelines for calculating provisions for excess inventories based on the number of months of inventories on hand compared to anticipated sales or usage. Management uses its judgment to forecast sales or usage and to determine what constitutes a reasonable period. Inventory cost includes material, labor and overhead. Inventories consisted of the following: September 30, December 31, Raw materials $ $ Work-in-progress Finished goods Total inventories, net $ $ Inventory valued using the FIFO method was $41,532 and $34,636 at September 30, 2015 and December 31, 2014, respectively. Inventory valued using the average cost method was $29,849 and $36,617 at September 30, 2015 and December 31, 2014, respectively. . |
Financial Instruments and Fair
Financial Instruments and Fair Value Measurements | 9 Months Ended |
Sep. 30, 2015 | |
Financial Instruments and Fair Value Measurements [Abstract] | |
Financial Instruments and Fair Value Measurements | (6) Financial Instruments and Fair Value Measurements Financial Instruments A financial instrument is cash or a contract that imposes an obligation to deliver, or conveys a right to receive cash or another financial instrument. The carrying values of cash and cash equivalents, accounts receivable and accounts payable are considered to be representative of fair value because of the short maturity of these instruments. Derivative Instruments and Hedging Activities On September 30, 2015, the Company had open foreign currency forward contracts which are used solely for hedging and not for speculative purposes. Management believes that its use of these instruments to reduce risk is in the Company's best interest. The counterparties to these financial instruments are financial institutions with investment grade credit ratings. Foreign Currency Exchange Rate Risk The Company conducts business internationally and therefore is exposed to foreign currency exchange rate risk. The Company uses derivative financial instruments as cash flow and fair value hedges to manage its exposure to fluctuations in foreign currency exchange rates by reducing the effect of such fluctuations on foreign currency denominated intercompany transactions, inventory purchases and other foreign currency exposures. The currencies hedged by the Company during 2015 and 2014 include the U.S. dollar, euro and Mexican peso. These forward contracts were executed to hedge forecasted transactions and were accounted for as cash flow hedges. As such, the effective portion of the unrealized gain or loss was deferred and reported in the Company’s condensed consolidated balance sheets as a component of accumulated other comprehensive loss. The cash flow hedges were highly effective. The effectiveness of the transactions has been and will be measured on an ongoing basis using regression analysis and forecasted future purchases of the U.S. dollar and Mexican peso. In certain instances, the foreign currency forward contracts do not qualify for hedge accounting or are not designated as hedges, and therefore are marked-to-market with gains and losses recognized in the Company's condensed consolidated statement of operations as a component of other (income) expense, net. The Company's foreign currency forward contracts offset a portion of the gains and losses on the underlying foreign currency denominated transactions as follows: Euro-denominated Foreign Currency Forward Contract As of September 30, 2015 and December 31, 2014, the Company held a foreign currency forward contract with underlying notional amounts of $1,694 and $3,523 , respectively, to reduce the exposure related to the Company's euro-denominated intercompany loans. This contract expires in December 2015 . The euro-denominated foreign currency forward contract was not designated as a hedging instrument. The Company recognized a loss of $9 and a gain of $1,064 for the three months ended September 30 , 2015 and 2014 , respectively, in the condensed consolidated statements of operations as a component of other (income) expense, net related to the euro-denominated contracts. The Company recognized a gain of $307 and $1,089 , respectively, related to this contract for the nine months ended September 30, 2015 and 2014. U.S. dollar-denominated Foreign Currency Forward Contracts – Cash Flow Hedge s The Company entered into on behalf of one of its European Electronics subsidiaries whose functional currency is the Swedish krona, U.S. dollar-denominated currency contracts with a notional amount at September 30, 2015 of $2,940 which expire ratably on a monthly basis from October 2015 through December 2015, compared to a notional amount of $11,718 at December 31, 2014. The Company entered into on behalf of one of its European Electronics subsidiaries whose functional currency is the euro, U.S. dollar-denominated currency contracts with a notional amount at September 30, 2015 of $1,071 which expire ratably on a monthly basis from October 2015 through December 2015, compared to a notional amount of $4,266 at December 31, 201 4 . On October 15, 2015 the Company entered into on behalf of one of its European Electronics subsidiaries whose functional currency is the Swedish krona, U.S. dollar-denominated currency contracts with a notional amount of $10,007 which expire ratably on a monthly basis from January 2016 through December 2016. On the same date the Company also entered into on behalf of one of its European Electronics subsidiaries whose functional currency is the euro, U.S. dollar-denominated currency contracts with a notional amount of $2,421 which expire ratably on a monthly basis from January 2016 through December 2016. Mexican peso-denominated Foreign Currency Forward Contracts – Cash Flow Hedge The Company holds Mexican peso-denominated foreign currency forward contracts with notional amounts at September 30, 2015 of $9,674 which expire ratably on a monthly basis from October 2015 through December 2016, compared to a notional amount of $10,282 at December 31, 2014. The Company evaluated the effectiveness of the Mexican peso-denominated foreign currency forward contracts held as of June 30, 2014. As a result of the sale of the Wiring business, the Company forecasted that it would purchase Mexican pesos to fulfill only two of the five contracts for the period August 2014 through December 2014. As the purchase of Mexican pesos related to three of the five contracts was not probable, these three contracts attributed to the Wiring business were de-designated at June 30, 2014, and the associated unrecognized $320 gain at that date was reclassified from accumulated other comprehensive loss and recorded in discontinued operations in the Company’s condensed consolidated statements of operations for the nine months ended September 30, 2014. Commodity Price Risk - Cash Flow Hedge To mitigate the risk of future price volatility and, consequently, fluctuations in gross margins, the Company sometimes enters into fixed price commodity contracts with financial institution s to fix the cost of a portion of the Company’s copper purchases . C opper is a raw material used in a number of the Company’s products . The Company did not have any fixed price commodity contracts at September 30, 2015 compared to an aggregate notional amount of 317 pounds at December 31, 2014. The unrealized gain or loss for the effective portion of the hedges were deferred and reported in the Company’s condensed consolidated balance sheets as a component of accumulated other comprehensive loss while the ineffective portion, if any, was reported in the condensed consolidated statements of operations. The effectiveness of the transactions is measured on an ongoing basis using regression analysis and forecasted future copper purchases. The Company evaluated the effectiveness of the copper fixed price commodity contracts as of June 30, 2014. As a result of the sale of the Wiring business, the Company forecasted that it would not purchase the quantities of copper to fulfill the two contracts for the period August 2014 through March 2015. As the purchase of copper quantities related to these contracts was not probable, the contracts primarily associated with the Wiring segment not expected to be fulfilled were de-designated at June 30, 2014, and the associated unrecognized $77 gain at that date was reclassified from accumulated other comprehensive loss and recorded in discontinued operations in the Company’s condensed consolidated statements of operations for the nine months ended September 30, 2014. Interest Rate Risk - Fair Value Hedge The Company had a fixed-to-floating interest rate swap agreement (the “Swap”) with a notional amount of $45,000 to hedge its exposure to fair value fluctuations on a portion of its senior notes. The Swap was designated as a fair value hedge of the fixed interest rate obligation under the Company's $175,000 9.5% senior notes due October 15, 2017. Under the Swap, the Company paid a variable interest rate equal to the six-month London Interbank Offered Rate (“LIBOR”) plus 7.2% and it received a fixed interest rate of 9.5% . The difference between amounts received and paid under the Swap was recognized as a component of interest expense, net on the condensed consolidated statements of operations. In connection with the Company’s notice of redemption issued on September 15, 2014 to redeem all remaining outstanding senior notes, the interest rate fair value hedge was de-designated on that date. On October 23, 2014, the Company terminated the interest rate swap resulting in a gain of $371 recognized in the fourth quarter of 2014. The Swap reduced interest expense by $194 and $625 for the three and nine months ended September 30, 2014, respectively. The notional amounts and fair values of derivative instruments in the condensed consolidated balance sheets were as follows: Prepaid expenses Notional and other current assets / Accrued expenses and amounts (A) other long-term assets other current liabilities September 30, December 31, September 30, December 31, September 30, December 31, Derivatives designated as hedging instruments Cash Flow Hedges: Forward currency contracts $ $ $ $ $ $ Derivatives not designated as hedging instruments Forward currency contracts $ $ - - $ $ Fixed price commodity contracts - - - - $ (A) Notional amounts represent the gross contract / notional amount of the derivatives outstanding. The fixed price commodity contract notional amounts are in pounds. Amounts recorded for the cash flow hedges in other comprehensive loss and in net income for the three months ended September 30 are as follows: Loss recorded in other comprehensive loss L oss reclassified from other comprehensive loss into net income Derivatives designated as cash flow hedges: Forward currency contracts $ (578) $ (457) $ $ Fixed price commodity contracts - - Total derivatives designated as cash flow hedges $ (578) $ $ $ Amounts recorded for the cash flow hedges in other comprehensive loss and in net income (loss) for the nine months ended September 30 are as follows: Gain (loss) recorded in other comprehensive loss Loss reclassified from other comprehensive loss into net income (loss) Derivatives designated as cash flow hedges: Forward currency contracts $ (681) $ 77 $ $ Fixed price commodity contracts - - Total derivatives designated as cash flow hedges $ (681) $ $ $ Gains and losses reclassified from other comprehensive loss into net income (loss) were recognized in cost of goods sold in the Company's condensed consolidated statements of operations. The net deferred loss of $ 28 on the cash flow hedge derivatives will be reclassified from other comprehensive loss to the condensed consolidated statements of operations through December 2016. The Company has measured the ineffectiveness of the forward currency and commodity contracts and any amounts recognized in the condensed consolidated financial statements were immaterial for the three and nine months ended September 30, 2015 and 2014. Fair Value Measurements The following table presents our assets and liabilities that are measured at fair value on a recurring basis and are categorized using the three levels of the fair value hierarchy based on the reliability of the inputs used. September 30 , December 31, Fair values estimated using Level 1 Level 2 Level 3 Fair value inputs (A) inputs (B) inputs (C) Fair value Financial assets carried at fair value: Interest rate swap contract $ - $ - $ - $ - $ - Forward currency contracts $ $ - $ $ - $ Total financial assets carried at fair value $ $ - $ $ - $ Financial liabilities carried at fair value: Forward currency contracts $ $ - $ $ - $ Fixed price commodity contracts - - - - Total financial liabilities carried at fair value $ $ - $ $ - $ (A) Fair values estimated using Level 1 inputs, which consist of quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. The Company did not have any recurring fair value estimates using Level 1 inputs at September 30 , 2015 or December 31, 2014. (B) Fair values estimated using Level 2 inputs, other than quoted prices, that are observable for the asset or liability, either directly or indirectly and include among other things, quoted prices for similar assets or liabilities in markets that are active or inactive as well as inputs other than quoted prices that are observable. For forward currency and fixed price commodity contracts , inputs include foreign currency exchange rates and commodity indexes. (C) Fair values estimated using Level 3 inputs consist of significant unobservable inputs. The Company did not have any recurring fair value estimates using Level 3 inputs at September 30 , 2015 or December 31, 2014 . The Company recorded a non-recurring fair value adjustment of $23,498 related to PST goodwill during the nine months ended September 30, 2014. The Company utilized Level 3 inputs to estimate the fair value adjustment for nonfinancial assets. For additional information, see the discussion of Goodwill in Note 4. No non-recurring fair value adjustments were required for nonfinancial assets for the nine months ended September 30, 2015. |
Share-Based Compensation
Share-Based Compensation | 9 Months Ended |
Sep. 30, 2015 | |
Share-Based Compensation [Abstract] | |
Share-Based Compensation | (7) Share-Based Compensation Compensation expense for share-based compensation arrangements, which is recognized in the condensed consolidated statements of operations as a component of selling, general and administrative expenses, was $ 1,264 and $1,499 for the three months ended September 30, 2015 and 2014, respectively. For the nine months ended September 30, 2015 total share-based compensation was $5,746 , includ ing $2,225 from the accelerated vesting in connection with the retirement of the Company’s former President and Chief Executive Officer, and $3,799 for the nine months ended September 30, 2014. |
Debt
Debt | 9 Months Ended |
Sep. 30, 2015 | |
Debt [Abstract] | |
Debt | (8) Debt Debt consisted of the following at September 30, 2015 and December 31, 2014: Interest rates at September 30, December 31, September 30, Maturity Revolving Credit Facility Credit facility $ $ September - 2019 Debt PST short-term obligations 5.5% - 24.0% Various 2015 and 2016 PST long-term notes 6.17% - 8.0% 2016 - 2021 Suzhou note - N/A April 2015 Other Total debt Less: current portion Total long-term debt, net $ $ Revolving Cred it Facility On November 2, 2007, the Company entered into an asset-based credit facility, which permits borrowing up to a maximum level of $100,000 . The Company entered into an Amended and Restated Credit and Security Agreement and a Second Amended and Restated Credit and Security Agreement on September 20, 2010 and December 1, 2011, respectively. On September 12, 2014, the Company entered into a Third Amended and Restated Credit Agreement (the “Amended Agreement” or “Credit Facility” ). The Amended Agreement provides for a $300,000 revolving credit facility, which replace d the Company’s existing $100,000 asset-based credit facility and includes a l etter of credit subfacility, swing line subfacility and multicurrency subfacility. The Amended Agreement also has an accordion feature which allows the Company to increase the availability by up to $80,000 upon the satisfaction of certain conditions. The Amended Agreement extend ed the ter mination date to September 12, 2019 from December 1, 2016. The Company capitalized $1,499 of deferred financing costs and recognized a $100 loss on extinguishment of previously deferred financing costs associated with the Amended Agreement. On March 26, 2015, the Company entered into Amendment No. 1 (the “Amendment”) to the Amended Agreement which modified the definition of Consolidated EBITDA to allow for the add back of cash premiums and other non-cash charges related to the amendment and restatement of the Amended Agreement and the early extinguishment of the Company’s 9.5% Senior Secured Notes totaling $10,507 both of which occurred in second half of 2014. Consolidated EBITDA is used in computing the Company’s leverage ratio and interest coverage ratio which are covenants within the Amended Agreement. Borrowings under the Amended Agreement will bear interest at either the Base Rate , as defined, or the LIBOR Rate, at the Company’s option, plus the applicable margin as set f orth in the Amended Agreement. The Company is also subject to a commitment fee ranging from 0.20% to 0.35% based on the Company’s leverage ratio. The agreement governing our Credit Facility requires the Company to maintain a maximum leverage ratio of 3.00 to 1.00, and a minimum interest coverage ratio of 3.50 to 1.00 and places a maximum annual limit on capital expenditures. The Amended Agreement also contains other affirmative and negative covenants and events of default that are customary for credit arrangements of this type including covenants which place restrictions and/or limitations on the Company’s ability to borrow money, make capital expenditures and pay dividends. The Company was in compliance with all credit facility covenants at September 30, 2015 and December 31, 2014 . Debt On October 4, 2010, the Company issued $175,000 of senior secured notes which b ore interest at an annual rate of 9.5% and were scheduled to mature on October 15, 2017 . On September 2, 2014, the Company redeemed $17,500 , or 10.0% , of its senior secured notes at a price of 103.0% of the principal amount. As a result of the redemption, the Company recognized a loss on extinguishment of debt of $820 in the third quarter of 2014, which included a premium of $525 and the acceleration of both the associated deferred financing costs and original issue discount totaling $295 . On October 15, 2014 , the Company redeemed the remaining $157,500 of its senior secured notes at a price of 104.75% of the principal amount discharging the corresponding senior notes indenture. As a result of the redemption, the Company recognized a loss o n extinguishment of debt of $9,687 in the fourth quarter of 2014, which included a premium of $7,481 , the acceleration of the remaining deferred financing costs of $535 and original issue discount of $2,019 and de-designation date unrecognized gain on the interest rate swap of $348 . PST maintains several short-term obligations and long- term notes used for working capital purposes which have fixed annual interest rate s . The weighted-average interest rates of short-term and long-term debt of PST at September 30 , 2015 were 16.8% and 7.4% , r espectively . Depending on the specific note, interest is payable either monthly or annually. Principal payments on PST debt at September 30, 2015 are as follows : $1 7,460 from October 2015 through September 2016 , $ 600 from October 2016 through December 2016, $ 1,841 in 2017, $ 969 in 20 18, $948 in 2019 , $325 in 2020 and $ 299 in 20 2 1. On February 25, 2014 , the Company's wholly-owned subsidiary located in Suzhou, China entered into a term loan for 9,000 Chinese yuan (the “Suzhou note”) which matured in August 2014. On October 17, 2014, this subsidiary entered into a new term loan for 9,000 Chinese yuan (the "Suzhou note") which matured and was repaid in April 2015. The U.S. dollar equivalent outstanding loan balance was $1,450 at December 31, 2014 which was included in the condensed consolidated balance sheets as a component of current portion of long-term debt. Interest was payable quarterly at 120.0% of the one-year lending rate published by The People's Bank of China . The Company was in compliance with all note covenants at September 30, 2015 and December 31, 2014. The Company's wholly-owned subsidiary located in Stockholm, Sweden, has an overdraft credit line which allows overdrafts on the subsidiary's bank account up to a maximum level of 20,000 Swedish krona, or $2,390 and $2,562 , at September 30, 2015 and December 31, 201 4 , respectively. At September 30, 2015 and December 31, 201 4 , there was no balance outstandi ng on this bank account . |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 9 Months Ended |
Sep. 30, 2015 | |
Earnings (Loss) Per Share [Abstract] | |
Earnings (Loss) Per Share | (9) Earnings (Loss) Per Share Basic earnings (loss) per share was computed by divi ding net income (loss) by the weighted- average number of Common Shares outstand ing for each respective period. Diluted earnings (loss) per share was calculated by dividing net income (loss) by the weighted-average of all potentially dilutive Common Shares that were outstanding during the periods presented. However, for all periods in which the Company recognized a loss from continuing operations, the Company did not recognize the effect of potentially dilutive securities as their inclusion would have been anti-dilutive. Weighted-average Common Shares outstanding used in calculating basic and diluted earnings (loss) per share were as follows: Three months ended Nine months ended September 30, September 30, Basic weighted-average Common Shares outstanding Effect of dilutive shares - Diluted weighted-average Common Shares outstanding There were no options outstanding at September 30, 2015 or December 31, 2014. There were 134,250 and 466,650 performance-based restricted Common Shares outstanding at September 30, 2015 and 2014, respectively. There were also 573,885 and 374,400 performance-based right to receive Common Shares outstanding at September 30, 2015 and 2014, respectively. These performance-based restricted and right to receive Common Shares are included in the computation of diluted earnings per share based on the number of Common Shares that would be issuable if the end of the quarter were the end of the contingency period . |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Loss by Component | 9 Months Ended |
Sep. 30, 2015 | |
Changes in Accumulated Other Comprehensive Loss by Component [Abstract] | |
Changes in Accumulated Other Comprehensive Loss by Component | ( 10 ) Changes in Accumulated Other Comprehensive Loss by Component Changes in accumulated other comprehensive loss for the three months ended September 30, 2015 and 2014 were as follows: Foreign Unrealized Benefit currency gain (loss) plan translation on derivatives liability Total Balance at July 1, 2015 $ $ $ $ Other comprehensive loss before reclassifications - Amounts reclassified from accumulated other comprehensive loss - - Net other comprehensive loss, net of tax - Balance at September 30, 2015 $ $ $ $ Balance at July 1, 2014 $ $ $ $ Other comprehensive loss before reclassifications - Amounts reclassified from accumulated other comprehensive loss - Net other comprehensive loss, net of tax - Balance at September 30, 2014 $ $ $ $ Changes in accumulated other comprehensive loss for the nine months ended September 30, 2015 and 2014 were as follows: Foreign Unrealized Benefit currency gain (loss) plan translation on derivatives liability Total Balance at January 1, 2015 $ $ $ $ Other comprehensive loss before reclassifications Amounts reclassified from accumulated other comprehensive loss - - Net other comprehensive loss, net of tax Balance at September 30, 2015 $ $ $ $ Balance at January 1, 2014 $ $ $ $ Other comprehensive loss before reclassifications - Amounts reclassified from accumulated other comprehensive loss - Net other comprehensive loss, net of tax - Balance at September 30, 2014 $ $ $ $ |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2015 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | (1 1 ) Commitments and Contingencies In the ordinary course of business, the Company is subject to a broad range of claims and legal proceedings that relate to contractual allegations, product liability, tax audits, patent infringement, employment-related matters and environmental matters. The Company establishes accruals for matters which it believes that losses are probable and can be reasonably estimable. Although it is not possible to predict with certainty the outcome of these matters, the Company is of the opinion that the ultimate resolution of these matters will not have a material adverse effect on its consolidated results of operations or financial position. As a result of environmental studies performed at the Company’s former facility located in Sarasota, Florida, the Company became aware of soil and groundwater contamination at the site. The Company engaged an environmental engineering consultant to assess the level of contamination and to develop a remediation and monitoring plan for the site. Soil remediation at the site was completed during the year ended December 31, 2010. A s the remedial action plan has been approved by the Florida Department of Environmental Protection , g round water remediation is expected to begin in the fourth quarter of 2015 once all property access approvals have been received . Environmental remediation costs paid for the nine months ended September 30, 2015 were $155 . At September 30, 2015 and December 31, 201 4 , the Company accrued a remaining undiscounted liability of $715 and $876 , respectively, related to future remediation costs . At September 30, 2015 and December 31, 201 4 , $651 and $813 , respectively, was recorded as a component of accrued expenses and other current liabilities on the condensed consolidated balance sheets while the remaining amount was recorded as a component of other long-term liabilities. A majority of the costs associated with the recorded liability will be incurred at the start of the groundwater remediation, with the balance relating to monitoring costs to be incurred over multiple years. Although the Company sold the Sarasota facility and related property in December 2011, the liability to remediate the site contamination remains the responsibility of the Company. Due to the ongoing site remediation, the closing terms of the sale agreement included a requirement for the Company to maintain a $2,000 letter of credit for the benefit of the buyer. The Company has a legal proceeding, Verde v. Stoneridge, Inc. et al . , currently pending in the United States District Court for the Eastern District of Texas, Cause No. 6:14-cv-00225- KNM. Plaintiff filed this putative class action against the Company and others on March 26, 2014. Plaintiff alleges that the Company was involved in the vertical chain of manufacture, distribution, and sale of a control device (“CD”) that was incorporated into a Dodge Ram truck purchased by Plaintiff in 2006. Plaintiff alleges that the Company breached express warranties and indemnification provisions by supplying a defective CD that was not capable of performing its intended function. The putative class consists of all Texas residents who own manual transmission Chrysler vehicles model years 1994–2007 equipped with the subject CD. Plaintiff seeks recovery of economic loss damages incurred by him and the putative class members associated with inspecting and replacing the allegedly defective CD, as well as attorneys’ fees and costs. Plaintiff filed his motion for class certification seeking to certify a class of Texas residents who own or lease certain automobiles sold by Chrysler from 1998–2007. Plaintiff alleges this putative class would include approximately 120,000 people. In the motion for class certification, the Plaintiff states that damages are no more than $ 1 per person. A hearing on Plaintiff’s motion for class certification is set for November 12, 2015. Similarly, Royal v. Stoneridge, Inc. et al. is another legal proceeding currently pending in the United States District Court for the Western District of Oklahoma, Cause No. 5:14-cv-01410-F. Plaintiffs filed this putative class action against the Company, Stoneridge Control Devices, Inc., and others on December 19, 2014. Plaintiffs alleges that the Company was involved in the vertical chain of manufacture, distribution, and sale of a CD that was incorporated into Dodge Ram trucks purchased by Plaintiff between 1999 and 2006. Plaintiffs allege that the Company and Stoneridge Control Devices, Inc. breached various express and implied warranties, including the implied warranty of merchantability. Plaintiffs also seek indemnity from the Company and Stoneridge Control Devices, Inc. The putative class consists of all owners of vehicles equipped with the subject CD, which includes various Dodge Ram trucks and other manual transmission vehicles manufactured from 1997–2007, which Plaintiffs allege is more than 1,000,000 vehicles. Plaintiffs seeks recovery of economic loss damages associated with inspecting and replacing the allegedly defective CD, diminished value of the subject CDs and the trucks in which they were installed, and attorneys’ fees and costs. The amount of compensatory or other damages sought by Plaintiffs and the putative class members is unknown. The Company is vigorously defending itself against these allegations, and has and will continue to challenge the claims as well as class action certification. The Company believes the likelihood of loss is not probable or reasonably estimable , and therefore no liability has been recorded for these claims at September 30, 2015. In September 2013, two legal proceeding s were initiated by Actia Automotive (“Actia”) in a French court (the tribunal de grande instance de Paris) alleging infringement of its patents by the Company’s Electronics segment. T he euro (“€”) and U.S. dollar equivalent (“$”) that Actia is seeking has been € 7 ,000 ($ 7,800 ) for each claim for injunctive relief and monetary damages resulting from such alleged infringement. The Company believes that its products did not infringe on any of the patents claimed by Actia, and the claim s are without merit. The Company is vigorously defending itself against these allegations , and it has challenged certain Actia patents in the European Patent Office . In September 2015, the French court ruled in favor of the Company on one claim, which is subject to appeal by Actia . There have been no significant changes to the facts and circumstances related to the remaining claim for the three or nine months ended September 30, 2015. The Company believes the likelihood of loss is not probable between its defenses and challenges to Actia’s patents . As such, no liab ility has been recorded for these claim s . On May 24, 2013, the State Revenue Services of São Paulo issued a tax deficiency notice against PST claiming that the vehicle tracking and monitoring services it provides should be classified as communication services, and therefore subject to the State Value Added Tax – ICMS. The State Revenue Services assessment imposed the 25.0% ICMS tax on all revenues of PST related to the vehicle tracking and monitoring services rendered during the period from January 2009 through December 2010. The Brazilian real (“R$”) and U.S. dollar equivalent (“$”) of the aggregate tax assessment is approximately R$92,500 ($23,300) which is comprised of Value Added Tax – ICMS of R$13,200 ($3,300) , interest of R$11,400 ($2,900) and penalties of R$67,900 ($17,100) . The Company believes that the vehicle tracking and monitoring services are non-communication services, as defined under Brazilian tax law, subject to the municipal ISS tax, not communication services subject to state ICMS tax as claimed by the State Revenue Services of São Paulo. PST has, and will continue to collect the municipal ISS tax on the vehicle tracking and monitoring services in compliance with Brazilian tax law and will defend its tax position. PST has received a legal opinion that the merits of the case are favorable to PST, determining among other things that the imposition on the subsidiary of the State ICMS by the State Revenue Services of São Paulo is not in accordance with the Brazilian tax code. In April 2015, the Tribunal of Taxes and Imposts of the State of São Paulo ruled in favor of PST that its tracking and monitoring services are not subject to state ICMS tax, which is subject to appeal by the State Revenue Services of São Paulo to a higher court. Management believes, based on the legal opinion of the Company’s Brazilian legal counsel, the recent favorable legal ruling in favor of PST and the results of the Brazil Administrative Court's binding ruling in favor of another vehicle tracking and monitoring company related to the tax deficiency notice it received, the likelihood of loss is not probable although it may take years to resolve. As a result of the above, as of September 30, 2015 and December 31, 201 4 , no accrual has been recorded with respect to the tax assessment. An unfavorable judgment on this issue for the years assessed and for subsequent years could result in significant costs to PST and adversely affect its results of operations. In addition, PST has civil, labor and other tax contingencies for which the likelihood of loss is deemed to be reasonably possible, but not probable, by the Company’s legal advisors in Brazil. As a result, no provision has been recorded with respect to these contingencies, which amounted to R$21,712 ($5,500) and R$37,237 ($14,000) at September 30, 2015 and December 31, 201 4 , respectively. An unfavorable outcome on these contingencies could result in significant cost to PST and adversely affect its results of operations. Product Warranty and Recall Amounts accrued for product warranty and recall claims are established based on the Company's best estimate of the amounts necessary to settle existing and future claims on products sold as of the balance sheet dates. These accruals are based on several factors including past experience, production changes, industry developments and various other considerations including insurance coverage . The Company can provide no assurances that it will not experience material claims or that it will not incur significant costs to defend or settle such claims beyond the amounts accrued or beyond what the Company may recover from its suppliers. The current portion of product warranty and recall is included as a component of accrued expenses and other current liabilities i n the condensed consolidated balance sheets. Product warranty and recall included $777 and $1,204 of a long-term liability at September 30, 2015 and December 31, 201 4 , respectively, which is included as a component of other long-term liabilities i n the condensed consolidated balance sheets. The following provides a reconciliation of changes in product warranty and recall liability: Nine months ended September 30 Product warranty and recall at beginning of period $ $ Accruals for products shipped during period Aggregate changes in pre-existing liabilities due to claim developments Settlements made during the period Product warranty and recall at end of period $ $ |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2015 | |
Income Taxes [Abstract] | |
Income Taxes | (1 2 ) Income Taxes The Company computes its consolidated income tax provision each quarter based on a projected annual effective tax rate, as required. The Company is required to reduce deferred tax assets by a valuation allowance if, based on all available evidence, it is considered more likely than not that some portion or all of the benefit of the deferred tax assets will not be realized in future periods. The Company also records the income tax impact of certain discrete, unusual or infrequently occurring items including changes in judgment about valuation allowances and effects of changes in tax laws or rates, in the interim period in which they occur. When a company maintains a valuation allowance in a particular jurisdiction, no net tax provision or (benefit) will typically be provided on the income (loss) for that jurisdiction on an annual basis. Jurisdictions with projected income that maintain a valuation allowance typically will form part of the projected annual effective tax rate calculation discussed above. However, jurisdictions with a projected loss for the year that maintain a valuation allowance are excluded from the projected annual effective income tax rate calculation. Instead, the income tax for these jurisdictions is computed separately. The actual year to date income tax provision (benefit) is the product of the most current projected annual effective income tax rate and the actual year to date pre-tax income (loss) adjusted for any discrete tax items. The income tax provision (benefit) for a particular quarter is the difference between the year to date calculation of income tax provision (benefit) and the year to date calculation for the prior quarter. Therefore, the actual income tax provision (benefit) and the actual effective income tax rate for a particular quarter can vary significantly based upon the jurisdictional mix and timing of actual earnings, the most current projected annual earnings compared to the projected annual earnings at the prior quarter, permanent items, earnings for those jurisdictions that maintain a valuation allowance, tax associated with jurisdictions excluded from the projected annual effective income tax rate calculation and discrete items. Projected annual earnings as well as actual earnings were significantly different at September 30, 2014 compared to June 30, 2014 due to the anticipated debt refinancing, the adjustment to the non-tax deductible goodwill impairment and the significant reduction in forecasted results for our Brazilian operations due to the continued economic weakness in Brazil. These factors caused a significant change in the projected annual tax rate for the third quarter of 2014 compared to that used for the second quarter of 2014, which as discussed above, the cumulative impact of such change in projected annual effective tax rate yielded an unusual amount of tax benefit in the third quarter of 2014. The Company recognized an income tax provision (benefit) of $32 and $(1,174) from continuing operations for federal, state and foreign income taxes for the three months ended September 30, 2015 and 2014, respectively. The effective tax rate in creased to 0.4% in the third quarter of 2015 from (14.7)% in the third quarter of 2014. The increase in the income tax expense and the effective tax rate for the three months ended September 30, 2015 compared to the same period for 2014 was primarily attributable to the factors discussed in the preceding paragraph as well as the improved earnings related to the U.S. operations, reduced earnings of the European operations and the smaller operating loss at PST. The Company recognized a n income tax benefit for income taxes of $(202) and $(790) for federal, state and foreign income taxes for the nine months ended September 30, 201 5 and 201 4 , respectively. The effective tax rate decreased to (1.3)% in the first nine months of 2015 from (3.8) % in the first nine months of 2014 . The decrease in the income tax benefit and the effective tax rate for the nine months ended September 30, 2015 compared to the same period for 2014 was primarily attributable to the impact of the non-tax deductible goodwill impairment charge in 2014. Also, the decrease in the income tax benefit and effective tax rate was due to the improved earnings related to the U.S. operations, reduced earnings of the European operations and the smaller operating loss at PST. The decrease was partially offset by discrete tax expense related to certain foreign operations during the first nine months of 2014 which did not recur in the first nine months of 2015. |
Segment Reporting
Segment Reporting | 9 Months Ended |
Sep. 30, 2015 | |
Segment Reporting [Abstract] | |
Segment Reporting | (1 3 ) Segment Reporting Operating segments are defined as components of an enterprise that are evaluated regularly by the Company's chief operating decision maker in deciding how to allocate resources and in assessing performance. The Company's chief operating decision maker is the chief executive officer. During the third quarter of 2014 the Company sold its Wiring business segment, which designed and manufactured wiring harness products and assembled instrument panels for sale principally to the commercial, agricultural and off-highway vehicle markets. As such, for all periods presented the Company reported this business as discontinued operations in the Company’s condensed consolidated financial statements and therefore excluded it from the segment disclosures herein. See Note 3 for additional details. The Company has three reportable segments , Control Devices, Electronics and PST , which also represent its operating segments. The Control Devices reportable segment produces sensors, switches, valves and actuators. The Electronics reportable segment produces electronic instrument clusters, electronic control units and driver information systems. The PST reportable segment designs and manufactures electronic vehicle security alarms, convenience accessories, vehicle tracking devices and monitoring services and in-vehicle audio and video devices. The accounting policies of the Company's reportable segments are the same as those described in Note 2, “Summary of Significant Accounting Policies” of the Company's 2014 Form 10-K. The Company's management evaluates the performance of its reportable segments based primarily on revenues from external customers and operating income (loss) . Inter-segment sales are accounted for on terms similar to those to third parties and are eliminated upon consolidation. A summary of financial information by reportable segment is as follows: Three months ended Nine months ended September 30, September 30, Net Sales: Control Devices $ $ $ $ Inter-segment sales Control Devices net sales Electronics Inter-segment sales Electronics net sales PST Inter-segment sales - - - - PST net sales Eliminations Total net sales $ $ $ $ Operating Income (Loss): Control Devices $ $ $ $ Electronics PST Unallocated Corporate (A) Total operating income (loss) $ $ $ $ Depreciation and Amortization: Control Devices $ $ $ $ Electronics PST Corporate Total depreciation and amortization (B) $ $ $ $ Interest Expense, net: Control Devices $ $ $ $ Electronics PST Corporate Total interest expense, net $ $ $ $ Capital Expenditures: Control Devices $ $ $ $ Electronics PST Corporate Total capital expenditures $ $ $ $ September 30, December 31, Total Assets: Control Devices $ $ Electronics PST Corporate (C) Eliminations Total assets $ $ (A) Unallocated Corporate expenses include, among other items, finance, legal , human resources and information technology costs as well as share-based compensation. (B) These amounts represent depreciation and amortization on property, plant and equipment and certain intangible assets. (C) Assets located at Corporate consist primarily of cash, intercompany loan receivables, equity investments and investments in subsidiaries. The following table presents net sales and long-term assets for each of the geographic areas in which the Company operates: Three months ended Nine months ended September 30, September 30, Net Sales: North America $ $ $ $ South America Europe and Other Total net sales $ $ $ $ September 30, December 31, Long-term Assets: North America $ $ South America Europe and Other Total long-term assets $ $ |
Investments
Investments | 9 Months Ended |
Sep. 30, 2015 | |
Investments [Abstract] | |
Investments | (1 4 ) Investments Minda Stoneridge Instruments Ltd. The Company has a 49% interest in Minda Stoneridge Instruments Ltd. (“Minda”) , a company based in India that manufactures electronics, instrumentation equipment and sensors primarily for the motorcycle and commercial vehicle market. The investment is accounted for under the equity method of accounting. The Company's investment in Minda , recorded as a component of investments and other long-term assets, net on the condensed consolidated balance sheets, was $6,872 and $6,653 at September 30, 2015 and December 31, 201 4 , respectively. Equity in earnings of Minda included in the condensed consolidated statements of operations was $160 and $205 , for the three months ended September 30, 2015 and 201 4 , respectively. Equity in earnings of Minda included in the condensed consolidated statements of operations was $492 and $587 for the nine months ended September 30, 2015 and 2014, respectively. PST Eletrônica Ltda. The Company has a 74% controlling interest in PST. Noncontrolling interest in PST decreased to $14,273 at September 30, 2015 due to comprehensive loss of $8,277 resulting from a proportionate share of its net loss of $1,074 for the nine months ended September 30, 2015 and an unfavorable change in foreign currency translation of $7,203 . N oncontrolling interest in PST de creased to $31,383 at September 30 , 201 4 due to comprehensive loss of $8,157 resulting from a proportionate share of its net loss of $7,039 including goodwill impairment for the nine months ended September 30, 2014 and an unfavorable change in foreign currency translation of $1,118 . Comprehensive loss related to PST noncontrolling interest was $4,080 and $2,294 for the three months ended September 30, 2015 and 2014, respectively. |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Discontinued Operations [Abstract] | |
Statements of Operations for Discontinued Operations | The following tables display summarized activity in our condensed consolidated statements of operations for discontinued operations related to the Wiring business: Three months ended Nine months ended September 30, September 30, Net sales $ - $ $ - $ Cost of goods sold (B) - - Selling, general and administrative (B) - - Interest expense, net - - Other expense, net - - Loss from operations of discontinued operations before income taxes (A) (B) - - Income tax benefit on discontinued operations - - Income (loss) from discontinued operations, net of tax (C) - - Loss on disposal (C) Income tax (provision) benefit on gain (loss) on disposal Loss on disposal, net of tax Loss from discontinued operations $ $ $ $ (A) The operations of the Wiring business were included only for the one and seven months ended July 31, 2014 as the sale was completed on August 1, 2014. (B) The assets and liabilities of the Wiring business were reclassified to held for sale effective May 26, 2014. Accordingly, depreciation and amortization for the Wiring assets were not recorded after that date. (C) Included in loss on disposal for the three months ended September 30, 2015 and 2014 were transaction costs of $94 and $377 , respectively, and $192 and $ 1,274 for the nine months ended September 30, 2015 and 2014, respectively. The loss on disposal also includes a working capital and other adjustments of $ 24 and $38 for the three and nine months ended September 30, 2015, respectively . I n addition, the loss on disposal included $2,734 in previously deferred foreign currency translation for the three and nine months ended September 30, 2014. |
Schedule of Depreciation, Amortization, and Capital Expenditures of Discontinued Operations | Three months Nine months ended September 30, ended September 30, Depreciation and amortization $ - $ Capital expenditures |
Goodwill (Tables)
Goodwill (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Goodwill [Abstract] | |
Schedule of Goodwill | The change in the carrying amount of goodwill for the nine months ended September 30, 2014 was as follows: Electronics PST Total Balance at January 1, 2014 $ $ $ Acquisition of business - Goodwill impairment charge - Currency translation Balance at September 30, 2014 $ $ $ |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Inventories [Abstract] | |
Schedule of Inventory, Current | Inventory cost includes material, labor and overhead. Inventories consisted of the following: September 30, December 31, Raw materials $ $ Work-in-progress Finished goods Total inventories, net $ $ |
Financial Instruments and Fai24
Financial Instruments and Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Financial Instruments and Fair Value Measurements [Abstract] | |
Notional Amounts and Fair Values of Derivative Instruments in the Consolidated Balance | The notional amounts and fair values of derivative instruments in the condensed consolidated balance sheets were as follows: Prepaid expenses Notional and other current assets / Accrued expenses and amounts (A) other long-term assets other current liabilities September 30, December 31, September 30, December 31, September 30, December 31, Derivatives designated as hedging instruments Cash Flow Hedges: Forward currency contracts $ $ $ $ $ $ Derivatives not designated as hedging instruments Forward currency contracts $ $ - - $ $ Fixed price commodity contracts - - - - $ (A) Notional amounts represent the gross contract / notional amount of the derivatives outstanding. The fixed price commodity contract notional amounts are in pounds. |
Amounts Recorded for the Cash Flow Hedges in Other Comprehensive Income (Loss) in Shareholders' Equity and in Net Income | Amounts recorded for the cash flow hedges in other comprehensive loss and in net income for the three months ended September 30 are as follows: Loss recorded in other comprehensive loss L oss reclassified from other comprehensive loss into net income Derivatives designated as cash flow hedges: Forward currency contracts $ (578) $ (457) $ $ Fixed price commodity contracts - - Total derivatives designated as cash flow hedges $ (578) $ $ $ Amounts recorded for the cash flow hedges in other comprehensive loss and in net income (loss) for the nine months ended September 30 are as follows: Gain (loss) recorded in other comprehensive loss Loss reclassified from other comprehensive loss into net income (loss) Derivatives designated as cash flow hedges: Forward currency contracts $ (681) $ 77 $ $ Fixed price commodity contracts - - Total derivatives designated as cash flow hedges $ (681) $ $ $ |
Schedule of Assets and Liabilities that are Measured at Fair Value on a Recurring Basis | The following table presents our assets and liabilities that are measured at fair value on a recurring basis and are categorized using the three levels of the fair value hierarchy based on the reliability of the inputs used. September 30 , December 31, Fair values estimated using Level 1 Level 2 Level 3 Fair value inputs (A) inputs (B) inputs (C) Fair value Financial assets carried at fair value: Interest rate swap contract $ - $ - $ - $ - $ - Forward currency contracts $ $ - $ $ - $ Total financial assets carried at fair value $ $ - $ $ - $ Financial liabilities carried at fair value: Forward currency contracts $ $ - $ $ - $ Fixed price commodity contracts - - - - Total financial liabilities carried at fair value $ $ - $ $ - $ (A) Fair values estimated using Level 1 inputs, which consist of quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. The Company did not have any recurring fair value estimates using Level 1 inputs at September 30 , 2015 or December 31, 2014. (B) Fair values estimated using Level 2 inputs, other than quoted prices, that are observable for the asset or liability, either directly or indirectly and include among other things, quoted prices for similar assets or liabilities in markets that are active or inactive as well as inputs other than quoted prices that are observable. For forward currency and fixed price commodity contracts , inputs include foreign currency exchange rates and commodity indexes. (C) Fair values estimated using Level 3 inputs consist of significant unobservable inputs. The Company did not have any recurring fair value estimates using Level 3 inputs at September 30 , 2015 or December 31, 2014 . |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Debt [Abstract] | |
Schedule of Debt | Interest rates at September 30, December 31, September 30, Maturity Revolving Credit Facility Credit facility $ $ September - 2019 Debt PST short-term obligations 5.5% - 24.0% Various 2015 and 2016 PST long-term notes 6.17% - 8.0% 2016 - 2021 Suzhou note - N/A April 2015 Other Total debt Less: current portion Total long-term debt, net $ $ |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Earnings (Loss) Per Share [Abstract] | |
Schedule of Weighted-Average Number of Shares | Weighted-average Common Shares outstanding used in calculating basic and diluted earnings (loss) per share were as follows: Three months ended Nine months ended September 30, September 30, Basic weighted-average Common Shares outstanding Effect of dilutive shares - Diluted weighted-average Common Shares outstanding |
Changes in Accumulated Other 27
Changes in Accumulated Other Comprehensive Loss by Component (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Changes in Accumulated Other Comprehensive Loss by Component [Abstract] | |
Changes in Accumulated Other Comprehensive Loss by Component | Changes in accumulated other comprehensive loss for the three months ended September 30, 2015 and 2014 were as follows: Foreign Unrealized Benefit currency gain (loss) plan translation on derivatives liability Total Balance at July 1, 2015 $ $ $ $ Other comprehensive loss before reclassifications - Amounts reclassified from accumulated other comprehensive loss - - Net other comprehensive loss, net of tax - Balance at September 30, 2015 $ $ $ $ Balance at July 1, 2014 $ $ $ $ Other comprehensive loss before reclassifications - Amounts reclassified from accumulated other comprehensive loss - Net other comprehensive loss, net of tax - Balance at September 30, 2014 $ $ $ $ Changes in accumulated other comprehensive loss for the nine months ended September 30, 2015 and 2014 were as follows: Foreign Unrealized Benefit currency gain (loss) plan translation on derivatives liability Total Balance at January 1, 2015 $ $ $ $ Other comprehensive loss before reclassifications Amounts reclassified from accumulated other comprehensive loss - - Net other comprehensive loss, net of tax Balance at September 30, 2015 $ $ $ $ Balance at January 1, 2014 $ $ $ $ Other comprehensive loss before reclassifications - Amounts reclassified from accumulated other comprehensive loss - Net other comprehensive loss, net of tax - Balance at September 30, 2014 $ $ $ $ |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Commitments and Contingencies [Abstract] | |
Schedule of Product Warranty Liability | The following provides a reconciliation of changes in product warranty and recall liability: Nine months ended September 30 Product warranty and recall at beginning of period $ $ Accruals for products shipped during period Aggregate changes in pre-existing liabilities due to claim developments Settlements made during the period Product warranty and recall at end of period $ $ |
Segment Reporting (Tables)
Segment Reporting (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Three months ended Nine months ended September 30, September 30, Net Sales: Control Devices $ $ $ $ Inter-segment sales Control Devices net sales Electronics Inter-segment sales Electronics net sales PST Inter-segment sales - - - - PST net sales Eliminations Total net sales $ $ $ $ Operating Income (Loss): Control Devices $ $ $ $ Electronics PST Unallocated Corporate (A) Total operating income (loss) $ $ $ $ Depreciation and Amortization: Control Devices $ $ $ $ Electronics PST Corporate Total depreciation and amortization (B) $ $ $ $ Interest Expense, net: Control Devices $ $ $ $ Electronics PST Corporate Total interest expense, net $ $ $ $ Capital Expenditures: Control Devices $ $ $ $ Electronics PST Corporate Total capital expenditures $ $ $ $ September 30, December 31, Total Assets: Control Devices $ $ Electronics PST Corporate (C) Eliminations Total assets $ $ (A) Unallocated Corporate expenses include, among other items, finance, legal , human resources and information technology costs as well as share-based compensation. (B) These amounts represent depreciation and amortization on property, plant and equipment and certain intangible assets. (C) Assets located at Corporate consist primarily of cash, intercompany loan receivables, equity investments and investments in subsidiaries. |
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas | The following table presents net sales and long-term assets for each of the geographic areas in which the Company operates: Three months ended Nine months ended September 30, September 30, Net Sales: North America $ $ $ $ South America Europe and Other Total net sales $ $ $ $ September 30, December 31, Long-term Assets: North America $ $ South America Europe and Other Total long-term assets $ $ |
Recently Issued Accounting St30
Recently Issued Accounting Standards (Narrative) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Recently Issued Accounting Standards [Abstract] | ||
Deferred finance costs, net | $ 1,525 | $ 1,767 |
Discontinued Operations (Narrat
Discontinued Operations (Narrative) (Details) - USD ($) $ in Thousands | Aug. 01, 2014 | Sep. 30, 2015 | Jun. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | May. 26, 2014 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Cash received for sale of business segment | $ 71,386 | |||||||
Discontinued operation, gain (loss) of discontinued operation, net of tax | $ (113) | $ (6,548) | $ (226) | (7,781) | ||||
Payment for working capital adjustment related to segment sale | 1,230 | |||||||
Post-disposition sales to Motherson acquired Wiring business | 7,299 | 5,244 | 21,574 | 5,244 | ||||
Post-disposition purchases from Motherson acquired Wiring business | 242 | 587 | 583 | 587 | ||||
Intercompany sales to Wiring | 2,158 | 17,448 | ||||||
Intercompany purchases from Wiring | 481 | 4,025 | ||||||
Cost of sales | 116,912 | 120,788 | 355,432 | 347,795 | ||||
Sales | 162,057 | 170,338 | 490,171 | 493,768 | ||||
Deferred foreign currency translation on disposal | 2,734 | 2,734 | ||||||
Transaction costs related to Wiring sale | 94 | 377 | 192 | 1,274 | ||||
Wiring [Member] | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Cash received for sale of business segment | $ 71,386 | |||||||
Base sale price | $ 65,700 | |||||||
Discontinued operation, gain (loss) of discontinued operation, net of tax | (113) | (6,548) | (226) | (7,781) | ||||
Payment for working capital adjustment related to segment sale | $ 1,230 | |||||||
Cost of sales | [1] | 21,669 | 154,787 | |||||
Sales | 21,142 | 167,434 | ||||||
Income tax provision on loss on disposal | $ (5) | $ 2,285 | $ (4) | $ 1,621 | ||||
[1] | The assets and liabilities of the Wiring business were reclassified to held for sale effective May 26, 2014. Accordingly, depreciation and amortization for the Wiring assets were not recorded after that date. |
Discontinued Operations Stateme
Discontinued Operations Statements of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Net sales | $ 162,057 | $ 170,338 | $ 490,171 | $ 493,768 | |
Cost of goods sold | 116,912 | 120,788 | 355,432 | 347,795 | |
Selling, general and administrative | 26,331 | 31,204 | 85,555 | 93,587 | |
Interest expense, net | 1,747 | 5,057 | 4,683 | 15,059 | |
Other (income) expense, net | (83) | 23 | (343) | 2,268 | |
Income (loss) from discontinued operations, net of tax | (1,560) | 86 | |||
Gain (loss) on disposal, net of tax | (113) | (6,548) | (226) | (7,781) | |
Loss from discontinued operations | (113) | (8,108) | (226) | (7,695) | |
Gain (loss) on disposal from working capital and other adjustments | (24) | (38) | |||
Transaction costs related to Wiring sale | 94 | 377 | 192 | 1,274 | |
Deferred foreign currency translation on disposal | 2,734 | 2,734 | |||
Wiring [Member] | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Net sales | 21,142 | 167,434 | |||
Cost of goods sold | [1] | 21,669 | 154,787 | ||
Selling, general and administrative | [1] | 2,048 | 12,645 | ||
Interest expense, net | 43 | 69 | |||
Other (income) expense, net | (147) | (58) | |||
Income (loss) from operations of discontinued operations before income taxes | [1],[2] | (2,471) | (9) | ||
Income tax denefit on discontinued operations | 911 | 95 | |||
Income (loss) from discontinued operations, net of tax | [3] | (1,560) | 86 | ||
Gain (loss) on disposal | [3] | (118) | (4,263) | (230) | (6,160) |
Income tax (provision) benefit on gain (loss) on disposal | 5 | (2,285) | 4 | (1,621) | |
Gain (loss) on disposal, net of tax | (113) | (6,548) | (226) | (7,781) | |
Loss from discontinued operations | $ (113) | $ (8,108) | $ (226) | $ (7,695) | |
[1] | The assets and liabilities of the Wiring business were reclassified to held for sale effective May 26, 2014. Accordingly, depreciation and amortization for the Wiring assets were not recorded after that date. | ||||
[2] | The operations of the Wiring business were included only for the one and seven months ended July 31, 2014 as the sale was completed on August 1, 2014. | ||||
[3] | Included in loss on disposal for the three months ended September 30, 2015 and 2014 were transaction costs of $94 and $377, respectively, and $192 and $1,274 for the nine months ended September 30, 2015 and 2014, respectively. The loss on disposal also includes a working capital and other adjustments of $24 and $38 for the three and nine months ended September 30, 2015, respectively. I |
Discontinued Operations (Deprec
Discontinued Operations (Depreciation, Amortization, and Capital Expenditures of Discontinued Operations) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Capital expenditures | $ 23,521 | $ 19,772 | |
Wiring [Member] | |||
Depreciation and amortization | 2,111 | ||
Capital expenditures | $ 397 | $ 1,238 |
Goodwill (Narrative) (Details)
Goodwill (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Jun. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Goodwill, ending balance | $ 31,321 | $ 1,000 | $ 31,321 | |
Goodwill impairment charge (benefit) | (5,802) | 23,498 | ||
Goodwill, translation adjustments | (193) | |||
PST [Member] | ||||
Goodwill, ending balance | 30,177 | 30,177 | ||
Goodwill impairment charge (benefit) | $ 29,300 | 23,498 | ||
Adjustment to reduce the goodwill impairment | (5,802) | |||
Goodwill impairment loss attributable to noncontrolling interest | (1,274) | $ 6,436 | 5,162 | |
Goodwill, translation adjustments | (69) | |||
Electronics [Member] | ||||
Goodwill, ending balance | $ 1,144 | 1,000 | 1,144 | |
Goodwill, translation adjustments | $ (78) | $ (124) |
Goodwill (Change in the Carryin
Goodwill (Change in the Carrying Amount of PST Goodwill) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Jun. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Goodwill, beginning balance | $ 1,078 | $ 54,348 | ||
Acquisition of business | 664 | |||
Goodwill impairment charge | $ 5,802 | (23,498) | ||
Currency translation | (193) | |||
Goodwill, ending balance | 31,321 | 1,000 | 31,321 | |
PST [Member] | ||||
Goodwill, beginning balance | 53,744 | |||
Goodwill impairment charge | $ (29,300) | (23,498) | ||
Currency translation | (69) | |||
Goodwill, ending balance | 30,177 | 30,177 | ||
Electronics [Member] | ||||
Goodwill, beginning balance | 604 | |||
Acquisition of business | 664 | |||
Currency translation | (78) | (124) | ||
Goodwill, ending balance | $ 1,144 | $ 1,000 | $ 1,144 |
Inventories (Narrative) (Detail
Inventories (Narrative) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Inventories [Abstract] | ||
Inventory amount, FIFO | $ 41,532 | $ 34,636 |
Inventory amount, weighted average cost | $ 29,849 | $ 36,617 |
Inventories (Schedule of Invent
Inventories (Schedule of Inventories) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Inventories [Abstract] | ||
Raw materials | $ 39,829 | $ 41,767 |
Work-in-progress | 9,587 | 8,779 |
Finished goods | 21,965 | 20,707 |
Total inventories, net | $ 71,381 | $ 71,253 |
Financial Instruments and Fai38
Financial Instruments and Fair Value Measurements (Narrative) (Details) lb in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||||
Sep. 30, 2015USD ($) | Dec. 31, 2014USD ($) | Sep. 30, 2014USD ($) | Jun. 30, 2014USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Dec. 31, 2014USD ($)lb | Oct. 15, 2015USD ($) | Sep. 01, 2014USD ($) | Oct. 04, 2010USD ($) | ||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |||||||||||||
Amount from cash flow hedge derivatives to be reclassified | $ 28 | $ 28 | |||||||||||
Goodwill impairment charge (benefit) | $ (5,802) | $ 23,498 | |||||||||||
Euro-Denominated Foreign Currency Forward Contracts [Member] | |||||||||||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |||||||||||||
Gain (loss) on derivative instruments held for trading purposes, net | (9) | $ 1,064 | $ 307 | 1,089 | |||||||||
Mexican Peso-Denominated Foreign Currency Forward Contracts [Member] | |||||||||||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |||||||||||||
Gain (loss) on derivative instruments that were de-designated | 320 | ||||||||||||
Copper Commodity [Member] | |||||||||||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |||||||||||||
Gain (loss) on derivative instruments that were de-designated | $ 77 | ||||||||||||
Interest Rate Swap [Member] | |||||||||||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |||||||||||||
Discription of variable rate basis of derivative | the Company paid a variable interest rate equal to the six-month London Interbank Offered Rate ("LIBOR") plus 7.2% | ||||||||||||
Fixed interest rate | 9.50% | 9.50% | |||||||||||
Reduction in interest expense as a result of swap | $ (194) | $ (625) | |||||||||||
Senior Notes [Member] | |||||||||||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |||||||||||||
Face value of senior secured notes | $ 175,000 | $ 175,000 | |||||||||||
Fixed interest rate | 9.50% | 9.50% | |||||||||||
Fair Value Hedging [Member] | Interest Rate Swap [Member] | |||||||||||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |||||||||||||
Gain on termination of Interest Rate Swap | $ 371 | ||||||||||||
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Forward Currency Contracts [Member] | |||||||||||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |||||||||||||
Notional amounts | 13,685 | 26,266 | [1] | $ 13,685 | $ 26,266 | [1] | |||||||
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | U.S. Dollar Denominated Foreign Currency Forward Contracts, Swedish Krona Functional Currency [Member] | |||||||||||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |||||||||||||
Notional amounts | 2,940 | 11,718 | 2,940 | 11,718 | |||||||||
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | U.S. Dollar Denominated Foreign Currency Forward Contracts, Swedish Krona Functional Currency [Member] | Subsequent Event [Member] | |||||||||||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |||||||||||||
Notional amounts | $ 10,007 | ||||||||||||
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | U.S. Dollar Denominated Foreign Currency Forward Contracts Euro Functional Currency [Member] | |||||||||||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |||||||||||||
Notional amounts | 1,071 | 4,266 | 1,071 | 4,266 | |||||||||
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | U.S. Dollar Denominated Foreign Currency Forward Contracts Euro Functional Currency [Member] | Subsequent Event [Member] | |||||||||||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |||||||||||||
Notional amounts | $ 2,421 | ||||||||||||
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Mexican Peso-Denominated Foreign Currency Forward Contracts [Member] | |||||||||||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |||||||||||||
Notional amounts | 9,674 | 10,282 | 9,674 | 10,282 | |||||||||
Designated as Hedging Instrument [Member] | Fair Value Hedging [Member] | Interest Rate Swap [Member] | |||||||||||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |||||||||||||
Notional amounts | $ 45,000 | $ 45,000 | |||||||||||
Not Designated as Hedging Instrument [Member] | Forward Currency Contracts [Member] | |||||||||||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |||||||||||||
Notional amounts | 1,694 | 3,523 | [1] | 1,694 | 3,523 | [1] | |||||||
Not Designated as Hedging Instrument [Member] | Euro-Denominated Foreign Currency Forward Contracts [Member] | |||||||||||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |||||||||||||
Notional amounts | $ 1,694 | $ 3,523 | $ 1,694 | $ 3,523 | |||||||||
Not Designated as Hedging Instrument [Member] | Copper Commodity [Member] | |||||||||||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |||||||||||||
Fixed price commodity contracts (in pounds) | lb | [1] | 317 | |||||||||||
London Interbank Offered Rate (LIBOR) [Member] | Interest Rate Swap [Member] | |||||||||||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |||||||||||||
Variable interest rate in addition to LIBOR | 7.20% | 7.20% | |||||||||||
PST [Member] | |||||||||||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |||||||||||||
Goodwill impairment charge (benefit) | $ 29,300 | $ 23,498 | |||||||||||
[1] | Notional amounts represent the gross contract / notional amount of the derivatives outstanding. The fixed price commodity contract notional amounts are in pounds. |
Financial Instruments and Fai39
Financial Instruments and Fair Value Measurements (Schedule of Derivative Instruments in Statement of Financial Position, Fair Value) (Details) lb in Thousands, $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2014USD ($)lb | Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | ||||
Forward Currency Contracts [Member] | Not Designated as Hedging Instrument [Member] | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Notional amounts | $ 3,523 | [1] | $ 1,694 | |||
Forward Currency Contracts [Member] | Cash Flow Hedging [Member] | Designated as Hedging Instrument [Member] | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Notional amounts | $ 26,266 | [1] | 13,685 | |||
Copper Commodity [Member] | Not Designated as Hedging Instrument [Member] | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Fixed price commodity contracts (in pounds) | lb | [1] | 317 | ||||
Interest Rate Swap [Member] | Fair Value Hedging [Member] | Designated as Hedging Instrument [Member] | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Notional amounts | $ 45,000 | |||||
Other Assets [Member] | Forward Currency Contracts [Member] | Cash Flow Hedging [Member] | Designated as Hedging Instrument [Member] | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Cash flow hedges , other derivatives | $ 479 | 400 | [1] | |||
Other Liabilities [Member] | Forward Currency Contracts [Member] | Not Designated as Hedging Instrument [Member] | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Fair value of other derivatives | (13) | (8) | ||||
Other Liabilities [Member] | Forward Currency Contracts [Member] | Cash Flow Hedging [Member] | Designated as Hedging Instrument [Member] | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Cash flow hedges , other derivatives | (478) | $ (428) | ||||
Other Liabilities [Member] | Copper Commodity [Member] | Not Designated as Hedging Instrument [Member] | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Fair value of other derivatives | $ (69) | |||||
[1] | Notional amounts represent the gross contract / notional amount of the derivatives outstanding. The fixed price commodity contract notional amounts are in pounds. |
Financial Instruments and Fai40
Financial Instruments and Fair Value Measurements (Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss)) (Details) - Designated as Hedging Instrument [Member] - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Derivatives designated as cash flow hedges: | ||||
Gain (loss) recorded in other comprehensive income (loss) | $ (578) | $ (477) | $ (681) | $ (261) |
Gain (loss) reclassified from other comprehensive income (loss) into net income (loss) | (342) | (333) | (652) | (212) |
Forward Currency Contracts [Member] | ||||
Derivatives designated as cash flow hedges: | ||||
Gain (loss) recorded in other comprehensive income (loss) | (578) | (457) | (681) | 77 |
Gain (loss) reclassified from other comprehensive income (loss) into net income (loss) | $ (342) | (290) | $ (652) | (48) |
Commodity Contract [Member] | ||||
Derivatives designated as cash flow hedges: | ||||
Gain (loss) recorded in other comprehensive income (loss) | (20) | (338) | ||
Gain (loss) reclassified from other comprehensive income (loss) into net income (loss) | $ (43) | $ (164) |
Financial Instruments and Fai41
Financial Instruments and Fair Value Measurements (Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 | |
Financial assets carried at fair value: | |||
Forward currency contracts | $ 400 | $ 479 | |
Total financial assets carried at fair value | 400 | 479 | |
Financial liabilities carried at fair value: | |||
Forward currency contracts | 436 | 491 | |
Fixed price commodity contracts | 69 | ||
Total financial liabilities carried at fair value | $ 436 | $ 560 | |
Fair Value, Inputs, Level 1 [Member] | |||
Financial assets carried at fair value: | |||
Interest rate swap contract | [1] | ||
Forward currency contracts | [1] | ||
Total financial assets carried at fair value | [1] | ||
Financial liabilities carried at fair value: | |||
Forward currency contracts | [1] | ||
Fixed price commodity contracts | [1] | ||
Total financial liabilities carried at fair value | [1] | ||
Fair Value, Inputs, Level 2 [Member] | |||
Financial assets carried at fair value: | |||
Interest rate swap contract | [2] | ||
Forward currency contracts | [2] | $ 400 | |
Total financial assets carried at fair value | [2] | 400 | |
Financial liabilities carried at fair value: | |||
Forward currency contracts | [2] | $ 436 | |
Fixed price commodity contracts | [2] | ||
Total financial liabilities carried at fair value | [2] | $ 436 | |
Fair Value, Inputs, Level 3 [Member] | |||
Financial assets carried at fair value: | |||
Interest rate swap contract | [3] | ||
Forward currency contracts | [3] | ||
Total financial assets carried at fair value | [3] | ||
Financial liabilities carried at fair value: | |||
Forward currency contracts | [3] | ||
Fixed price commodity contracts | [3] | ||
Total financial liabilities carried at fair value | [3] | ||
[1] | Fair values estimated using Level 1 inputs, which consist of quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. The Company did not have any recurring fair value estimates using Level 1 inputs at September 30, 2015 or December 31, 2014. | ||
[2] | Fair values estimated using Level 2 inputs, other than quoted prices, that are observable for the asset or liability, either directly or indirectly and include among other things, quoted prices for similar assets or liabilities in markets that are active or inactive as well as inputs other than quoted prices that are observable. For forward currency and fixed price commodity contracts, inputs include foreign currency exchange rates and commodity indexes. | ||
[3] | Fair values estimated using Level 3 inputs consist of significant unobservable inputs. The Company did not have any recurring fair value estimates using Level 3 inputs at September 30, 2015 or December 31, 2014 |
Share-Based Compensation (Narra
Share-Based Compensation (Narrative) (Details) - Selling, General and Administrative Expenses [Member] - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Allocated share-based compensation expense | $ 1,264 | $ 1,499 | $ 5,746 | $ 3,799 |
CEO Retirement Additional Expense [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Additional stock compensation expense in connection with retirement of former President and CEO | $ 2,225 |
Debt (Narrative) (Details)
Debt (Narrative) (Details) SEK in Thousands, $ in Thousands | Oct. 15, 2014USD ($) | Sep. 02, 2014USD ($) | Sep. 30, 2015USD ($) | Dec. 31, 2014USD ($) | Sep. 30, 2014USD ($) | Dec. 31, 2014USD ($) | Sep. 30, 2015SEK | Sep. 30, 2014USD ($) | Dec. 31, 2014SEK | Sep. 30, 2015SEK | Sep. 30, 2015USD ($) | Dec. 31, 2014USD ($) | Oct. 17, 2014CNY (¥) | Sep. 12, 2014USD ($) | Sep. 01, 2014USD ($) | Feb. 25, 2014CNY (¥) | Oct. 04, 2010USD ($) | Nov. 02, 2007USD ($) |
Debt Instrument [Line Items] | ||||||||||||||||||
Credit Facility covenat compliance | The Company was in compliance with all credit facility covenants at September 30, 2015 and December 31, 2014 | The Company was in compliance with all credit facility covenants at September 30, 2015 and December 31, 2014 | ||||||||||||||||
Notes covenant compliance | The Company was in compliance with all note covenants at September 30, 2015 and December 31, 2014. | |||||||||||||||||
Borrowings outstanding | $ 100,000 | $ 100,000 | ||||||||||||||||
Maximum leverage ratio | 300.00% | 300.00% | 300.00% | |||||||||||||||
Minimum interest coverage ratio | 350.00% | 350.00% | 350.00% | |||||||||||||||
Total long-term debt, net | $ 4,982 | 10,651 | ||||||||||||||||
Less: current portion | 17,913 | 19,655 | ||||||||||||||||
Loss on early extinguishment of debt | $ (920) | $ (920) | ||||||||||||||||
Senior Notes [Member] | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Write off of deferred financing costs | $ 535 | 295 | ||||||||||||||||
Debt interest rate | 9.50% | |||||||||||||||||
Debt instrument, maturity date | Oct. 15, 2017 | |||||||||||||||||
Face value of senior secured notes | $ 175,000 | $ 175,000 | ||||||||||||||||
Note redeemable start date | Oct. 15, 2014 | |||||||||||||||||
Percentage of outstanding debt redeemed | 10.00% | |||||||||||||||||
Debt early redemption percentage | 104.75% | 103.00% | ||||||||||||||||
Debt early redemption premium | 104.75% | |||||||||||||||||
Amortization of debt discount (premium) | 2,019 | |||||||||||||||||
De-designation date unrecognized gain on interest rate swap | 348 | |||||||||||||||||
Redemption of notes | $ 157,500 | $ 17,500 | ||||||||||||||||
Loss on early extinguishment of debt | 9,687 | 820 | $ (10,507) | |||||||||||||||
Premium paid on extinguishment of debt | $ 7,481 | $ 525 | ||||||||||||||||
Revolving Credit Facility [Member] | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Capitalized deferred financing costs | $ 1,499 | |||||||||||||||||
Debt interest rate | 2.12% | 2.12% | 2.12% | |||||||||||||||
Line of credit facility, maximum borrowing capacity | $ 300,000 | $ 100,000 | ||||||||||||||||
Increase in maximum borrowing capacity of credit facility | $ 80,000 | |||||||||||||||||
Borrowings outstanding | $ 100,000 | 100,000 | ||||||||||||||||
Line of credit expiration date | Sep. 12, 2019 | |||||||||||||||||
Loss on early extinguishment of debt | $ 100 | |||||||||||||||||
Revolving Credit Facility [Member] | Maximum [Member] | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Credit facility, commitment fee percentage | 0.35% | |||||||||||||||||
Revolving Credit Facility [Member] | Minimum [Member] | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Credit facility, commitment fee percentage | 0.20% | |||||||||||||||||
Term Loan [Member] | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Line of credit, current | $ 0 | 0 | ||||||||||||||||
Term Loan One [Member] | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Debt, face amount | ¥ | ¥ 9,000,000 | |||||||||||||||||
Term Loan One [Member] | People's Bank of China One-Year Lending Rate [Member] | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Interest rate multiplier | 120.00% | |||||||||||||||||
Term Loan Two [Member] | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Debt, face amount | ¥ | ¥ 9,000,000 | |||||||||||||||||
Debt outstanding | 1,450 | |||||||||||||||||
PST Eletronicaltda [Member] | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Long-term debt, weighted average interest rate | 7.40% | 7.40% | 7.40% | |||||||||||||||
Short-term debt, weighted average interest rate | 16.80% | 16.80% | 16.80% | |||||||||||||||
PST Eletronicaltda [Member] | Term Loan [Member] | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
October 2015 through September 2016 | $ 17,460 | |||||||||||||||||
Long term debt maturities of princpical in remaining portion of year two | 600 | |||||||||||||||||
2,017 | 1,841 | |||||||||||||||||
2,018 | 969 | |||||||||||||||||
2,019 | 948 | |||||||||||||||||
2,021 | 299 | |||||||||||||||||
2,020 | 325 | |||||||||||||||||
Electronics [Member] | Line of Credit [Member] | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Line of credit facility, maximum borrowing capacity | SEK 20,000 | SEK 20,000 | SEK 20,000 | $ 2,390 | $ 2,562 |
Debt (Schedule of Debt) (Detail
Debt (Schedule of Debt) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2015 | Dec. 31, 2014 | Oct. 04, 2010 | |
Debt Instrument [Line Items] | ||||
Revolving credit facility | $ 100,000 | $ 100,000 | $ 100,000 | |
Debt: | ||||
Total debt | 22,895 | 22,895 | 30,306 | |
Less: current portion | (17,913) | (17,913) | (19,655) | |
Total long-term debt, net | 4,982 | 4,982 | 10,651 | |
Revolving Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Revolving credit facility | $ 100,000 | $ 100,000 | 100,000 | |
Debt: | ||||
Debt interest rate | 2.12% | 2.12% | ||
Debt, maturity | September - 2019 | |||
Senior Notes [Member] | ||||
Debt: | ||||
Debt interest rate | 9.50% | |||
PST Short-Term Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Short-term debt | $ 15,632 | $ 15,632 | 11,249 | |
Debt: | ||||
Debt, maturity | Various 2015 and 2016 | |||
PST Short-Term Notes [Member] | Maximum [Member] | ||||
Debt: | ||||
Interest rate maximum | 24.00% | |||
PST Short-Term Notes [Member] | Minimum [Member] | ||||
Debt: | ||||
Interest rate minimum | 5.50% | |||
PST Long-Term Notes [Member] | ||||
Debt: | ||||
Total long-term debt, net | $ 6,810 | $ 6,810 | 16,770 | |
Debt maturity period range start | 2,016 | |||
Debt maturity period range end | 2,021 | |||
PST Long-Term Notes [Member] | Maximum [Member] | ||||
Debt: | ||||
Interest rate maximum | 8.00% | |||
PST Long-Term Notes [Member] | Minimum [Member] | ||||
Debt: | ||||
Interest rate minimum | 6.17% | |||
Other [Member] | ||||
Debt: | ||||
Total debt | $ 453 | $ 453 | 837 | |
Suzhou Note [Member] | ||||
Debt Instrument [Line Items] | ||||
Short-term debt | $ 1,450 | |||
Debt: | ||||
Debt, maturity | April 2,015 |
Earnings (Loss) Per Share (Nara
Earnings (Loss) Per Share (Narative) (Details) - shares | Sep. 30, 2015 | Dec. 31, 2014 | Sep. 30, 2014 |
Equity Option [Member] | |||
Options outstanding | 0 | 0 | |
Performance Based Restricted Common Shares [Member] | |||
Common shares, non-vested | 134,250 | 466,650 | |
Performance Based Right to Received Common Shares [Member] | |||
Common shares, non-vested | 573,885 | 374,400 |
Earnings (Loss) Per Share (Weig
Earnings (Loss) Per Share (Weighted Average Shares Oustanding Used in Calculating Basic and Diluted Net Income Per Share) (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Earnings (Loss) Per Share [Abstract] | ||||
Basic weighted-average common shares outstanding | 27,444,221 | 26,953,596 | 27,299,319 | 26,913,880 |
Effect of dilutive shares | 563,988 | 600,543 | 627,723 | |
Diluted weighted-average common shares outstanding | 28,008,209 | 27,554,139 | 27,927,042 | 26,913,880 |
Changes in Accumulated Other 47
Changes in Accumulated Other Comprehensive Loss by Component (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Jun. 30, 2015 | Dec. 31, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | |
Changes in Accumulated Other Comprehensive Loss by Component [Abstract] | ||||||||
Foreign currency translation, Beginning balance | $ (57,543) | $ (23,971) | $ (45,603) | $ (30,335) | ||||
Foreign currency translation, Other comprehensive income (loss) before reclassifications | (12,557) | (15,262) | (24,497) | (8,898) | ||||
Foreign currency translation, Amounts reclassified from accumulated other comprehensive loss | 2,734 | 2,734 | ||||||
Other comprehensive income (loss), Foreign currency transaction and translation adjustment, net of tax | (12,557) | (12,528) | (24,497) | (6,164) | ||||
Foreign currency translation, Ending balance | (70,100) | (36,499) | (70,100) | (36,499) | ||||
Unrealized gain (loss) on hedging activities, Beginning balance | 208 | (16) | 1 | (111) | ||||
Unrealized gain (loss) on hedging activities, Other comprehensive income (loss) before reclassifications | (578) | (477) | (681) | (261) | ||||
Unrealized gain (loss) on hedging activities, Amounts reclassified from accumulated other comprehensive loss | 342 | 333 | 652 | 212 | ||||
Unrealized gain (loss) on hedging activities, Net other comprehensive income (loss), net of tax | (236) | (144) | (29) | (49) | ||||
Unrealized gain (loss) on hedging activities, Ending balance | (28) | (160) | (28) | (160) | ||||
Post employment benefit liability, Beginning balance | 84 | (12) | 129 | (12) | ||||
Post employment benefit liability, Other comprehensive loss before reclassifications | (45) | |||||||
Post employment benefit liability, Other comprehensive income (loss) | (45) | |||||||
Post employment benefit liability, Ending balance | 84 | (12) | 84 | (12) | ||||
Total, Other comprehensive income (loss) before reclassifications | (13,135) | (15,739) | (25,223) | (9,159) | ||||
Total, Amounts reclassified from accumulated other comprehensive loss | 342 | 3,067 | 652 | 2,946 | ||||
Other comprehensive income (loss), net of tax | (12,793) | (12,672) | (24,571) | (6,213) | ||||
Accumulated other comprehensive income (loss), net of tax, total | $ (70,044) | $ (36,671) | $ (70,044) | $ (36,671) | $ (57,251) | $ (45,473) | $ (23,999) | $ (30,458) |
Commitments and Contingencies48
Commitments and Contingencies (Narrative) (Details) € in Thousands, BRL in Thousands | 9 Months Ended | 24 Months Ended | |||||
Sep. 30, 2015USD ($)itemcustomer | Dec. 31, 2010 | Sep. 30, 2015EUR (€) | Sep. 30, 2015BRL | Sep. 30, 2015USD ($) | Dec. 31, 2014BRL | Dec. 31, 2014USD ($) | |
Short-term Debt [Line Items] | |||||||
Environmental remediation costs incurred | $ 155,000 | ||||||
Environmental remediation accrued undiscounted liability | $ 715,000 | $ 876,000 | |||||
Number of people the plaintiff states have damages | customer | 120,000 | ||||||
Number of vehicles the plaintiff states are effected | item | 1,000,000 | ||||||
Maximum loss per plaintiff | 1,000 | ||||||
Percentage of state value added tax | 25.00% | ||||||
Product warranty and recall accrual | 777,000 | 1,204,000 | |||||
Electronics [Member] | |||||||
Short-term Debt [Line Items] | |||||||
Loss contingency, estimate of possible loss | € 14,000 | 15,600,000 | |||||
Accrued Expenses and Other Current Liabilities [Member] | |||||||
Short-term Debt [Line Items] | |||||||
Environmental remediation accrued undiscounted liability | 651,000 | 813,000 | |||||
Letter of Credit [Member] | |||||||
Short-term Debt [Line Items] | |||||||
Line of credit | 2,000,000 | ||||||
PST Eletronicaltda [Member] | |||||||
Short-term Debt [Line Items] | |||||||
Loss contingencies aggregate tax assessment not accrued | BRL 92,500 | 23,300,000 | |||||
PST Eletronicaltda [Member] | Civil, labor and other tax contingencies [Member] | |||||||
Short-term Debt [Line Items] | |||||||
Loss contingency, estimate of possible loss | 21,712 | 5,500,000 | BRL 37,237 | $ 14,000,000 | |||
PST Eletronicaltda [Member] | Value Added Tax [Member] | |||||||
Short-term Debt [Line Items] | |||||||
Loss contingencies aggregate tax assessment not accrued | 13,200 | 3,300,000 | |||||
PST Eletronicaltda [Member] | Interest On Tax [Member] | |||||||
Short-term Debt [Line Items] | |||||||
Loss contingencies aggregate tax assessment not accrued | 11,400 | 2,900,000 | |||||
PST Eletronicaltda [Member] | Penalties On Tax [Member] | |||||||
Short-term Debt [Line Items] | |||||||
Loss contingencies aggregate tax assessment not accrued | BRL 67,900 | $ 17,100,000 | |||||
Minda Stoneridge Instruments Ltd [Member] | |||||||
Short-term Debt [Line Items] | |||||||
Equity method investment, ownership percentage | 49.00% | 49.00% | 49.00% |
Commitments and Contingencies49
Commitments and Contingencies (Reconciliation of Changes in Product Warranty and Recall Liability) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Commitments and Contingencies [Abstract] | ||
Product warranty and recall at beginning of period | $ 7,601 | $ 6,414 |
Accruals for products shipped during period | 2,716 | 3,329 |
Aggregate changes in pre-existing liabilities due to claim developments | (122) | 194 |
Settlements made during the period | (3,715) | (2,414) |
Product warranty and recall at end of period | $ 6,480 | $ 7,523 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Income Taxes [Abstract] | ||||
Provision (benefit) for income taxes from continuing operations | $ 32 | $ (1,174) | $ (202) | $ (790) |
Effective income tax rate | 0.40% | (14.70%) | (1.30%) | (3.80%) |
Segment Reporting (Narrative) (
Segment Reporting (Narrative) (Details) | 9 Months Ended |
Sep. 30, 2015segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 3 |
Segment Reporting (Schedule of
Segment Reporting (Schedule of Segment Reporting Information, by Segment) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2015 | Sep. 30, 2014 | Jun. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | ||
Net Sales: | |||||||
Total net sales | $ 162,057 | $ 170,338 | $ 490,171 | $ 493,768 | |||
Income (Loss) Before Income Taxes: | |||||||
Total operating income (loss) | 8,947 | 13,759 | 19,488 | (3,028) | |||
Total income before income taxes | 7,443 | 7,964 | 15,640 | (20,688) | |||
Interest Expense, net: | |||||||
Interest expense, net | 1,747 | 5,057 | 4,683 | 15,059 | |||
Capital Expenditures: | |||||||
Capital expenditures | 23,521 | 19,772 | |||||
Total Assets: | |||||||
Total assets | 365,866 | 365,866 | $ 398,751 | ||||
Goodwill impairment | (5,802) | 23,498 | |||||
Continuing Operations [Member] | |||||||
Net Sales: | |||||||
Total net sales | 162,057 | 170,338 | 490,171 | 493,768 | |||
Depreciation and Amortization: | |||||||
Total depreciation and amortization | [1] | 5,646 | 7,024 | 17,552 | 20,716 | ||
Interest Expense, net: | |||||||
Interest expense, net | 1,747 | 5,057 | 4,683 | 15,059 | |||
Capital Expenditures: | |||||||
Capital expenditures | 8,292 | 6,770 | 23,521 | 18,534 | |||
Total Assets: | |||||||
Total assets | 365,866 | 365,866 | 398,751 | ||||
Operating Segments [Member] | Continuing Operations [Member] | |||||||
Income (Loss) Before Income Taxes: | |||||||
Total operating income (loss) | 8,947 | 13,759 | 19,488 | (3,028) | |||
Intersegment Eliminations [Member] | Continuing Operations [Member] | |||||||
Net Sales: | |||||||
Total net sales | (7,049) | (7,863) | (19,465) | (32,687) | |||
Total Assets: | |||||||
Total assets | (249,650) | (249,650) | (251,085) | ||||
Electronics [Member] | |||||||
Net Sales: | |||||||
Total net sales | 57,255 | 62,174 | 182,666 | 188,362 | |||
Electronics [Member] | Operating Segments [Member] | Continuing Operations [Member] | |||||||
Net Sales: | |||||||
Total net sales | 50,688 | 54,951 | 165,015 | 157,808 | |||
Income (Loss) Before Income Taxes: | |||||||
Total operating income (loss) | 2,767 | 4,370 | 9,413 | 14,038 | |||
Depreciation and Amortization: | |||||||
Total depreciation and amortization | 949 | 1,064 | 2,860 | 3,302 | |||
Interest Expense, net: | |||||||
Interest expense, net | 38 | 199 | 124 | 632 | |||
Capital Expenditures: | |||||||
Capital expenditures | 2,729 | 1,345 | 5,751 | 4,011 | |||
Total Assets: | |||||||
Total assets | 99,191 | 99,191 | 95,140 | ||||
Electronics [Member] | Intersegment Eliminations [Member] | Continuing Operations [Member] | |||||||
Net Sales: | |||||||
Total net sales | 6,567 | 7,223 | 17,651 | 30,554 | |||
Control Devices [Member] | |||||||
Net Sales: | |||||||
Total net sales | 87,512 | 78,998 | 253,113 | 234,228 | |||
Control Devices [Member] | Operating Segments [Member] | Continuing Operations [Member] | |||||||
Net Sales: | |||||||
Total net sales | 87,030 | 78,358 | 251,299 | 232,095 | |||
Income (Loss) Before Income Taxes: | |||||||
Total operating income (loss) | 12,197 | 10,000 | 33,787 | 27,152 | |||
Depreciation and Amortization: | |||||||
Total depreciation and amortization | 2,346 | 2,412 | 7,132 | 7,165 | |||
Interest Expense, net: | |||||||
Interest expense, net | 81 | 83 | 246 | 216 | |||
Capital Expenditures: | |||||||
Capital expenditures | 3,953 | 4,094 | 11,835 | 9,356 | |||
Total Assets: | |||||||
Total assets | 135,461 | 135,461 | 115,703 | ||||
Control Devices [Member] | Intersegment Eliminations [Member] | Continuing Operations [Member] | |||||||
Net Sales: | |||||||
Total net sales | 482 | 640 | 1,814 | 2,133 | |||
Corporate [Member] | Continuing Operations [Member] | |||||||
Interest Expense, net: | |||||||
Interest expense, net | 789 | 4,044 | 2,250 | 12,020 | |||
Capital Expenditures: | |||||||
Capital expenditures | 133 | 25 | 1,046 | 132 | |||
Total Assets: | |||||||
Total assets | [2] | 272,061 | 272,061 | 279,013 | |||
Corporate [Member] | Operating Segments [Member] | Continuing Operations [Member] | |||||||
Income (Loss) Before Income Taxes: | |||||||
Total operating income (loss) | [3] | (5,377) | (5,078) | (17,831) | (14,161) | ||
Depreciation and Amortization: | |||||||
Total depreciation and amortization | 69 | 47 | 139 | 126 | |||
PST [Member] | |||||||
Net Sales: | |||||||
Total net sales | 24,339 | 37,029 | 73,857 | 103,865 | |||
Total Assets: | |||||||
Goodwill impairment | $ 29,300 | 23,498 | |||||
PST [Member] | Operating Segments [Member] | Continuing Operations [Member] | |||||||
Net Sales: | |||||||
Total net sales | 24,339 | 37,029 | 73,857 | 103,865 | |||
Income (Loss) Before Income Taxes: | |||||||
Total operating income (loss) | (640) | 4,467 | (5,881) | (30,057) | |||
Depreciation and Amortization: | |||||||
Total depreciation and amortization | 2,282 | 3,501 | 7,421 | 10,123 | |||
Interest Expense, net: | |||||||
Interest expense, net | 839 | 731 | 2,063 | 2,191 | |||
Capital Expenditures: | |||||||
Capital expenditures | 1,477 | $ 1,306 | 4,889 | $ 5,035 | |||
Total Assets: | |||||||
Total assets | $ 108,803 | $ 108,803 | $ 159,980 | ||||
PST [Member] | Intersegment Eliminations [Member] | Continuing Operations [Member] | |||||||
Net Sales: | |||||||
Total net sales | |||||||
[1] | These amounts represent depreciation and amortization on property, plant and equipment and certain intangible assets. | ||||||
[2] | Assets located at Corporate consist primarily of cash, intercompany loan receivables, equity investments and investments in subsidiaries. | ||||||
[3] | Unallocated Corporate expenses include, among other items, finance, legal, human resources and information technology costs as well as share-based compensation. |
Segment Reporting (Schedule o53
Segment Reporting (Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Net Sales: | |||||
Total net sales | $ 162,057 | $ 170,338 | $ 490,171 | $ 493,768 | |
Long-term Assets: | |||||
Total long-term assets | 130,328 | 130,328 | $ 153,240 | ||
Continuing Operations [Member] | |||||
Net Sales: | |||||
Total net sales | 162,057 | 170,338 | 490,171 | 493,768 | |
Long-term Assets: | |||||
Total long-term assets | 130,328 | 130,328 | 153,240 | ||
Continuing Operations [Member] | North America [Member] | |||||
Net Sales: | |||||
Total net sales | 96,676 | 86,744 | 281,108 | 246,260 | |
Long-term Assets: | |||||
Total long-term assets | 58,648 | 58,648 | 53,406 | ||
Continuing Operations [Member] | South America [Member] | |||||
Net Sales: | |||||
Total net sales | 24,339 | 37,029 | 73,857 | 103,865 | |
Long-term Assets: | |||||
Total long-term assets | 57,256 | 57,256 | 85,433 | ||
Continuing Operations [Member] | Europe and Other [Member] | |||||
Net Sales: | |||||
Total net sales | 41,042 | $ 46,565 | 135,206 | $ 143,643 | |
Long-term Assets: | |||||
Total long-term assets | $ 14,424 | $ 14,424 | $ 14,401 |
Investments (Narrative) (Detail
Investments (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Schedule of Equity Method Investments [Line Items] | |||||
Income (loss) from equity method investments | $ 160 | $ 205 | $ 492 | $ 587 | |
Noncontrolling interest | 14,273 | 14,273 | $ 22,550 | ||
Less: income (loss) attributable to noncontrolling interest | $ (69) | 1,160 | (1,074) | (7,039) | |
PST Eletronicaltda [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Percentage ownership in consolidated subsidiary | 74.00% | ||||
Noncontrolling interest | $ 14,273 | 31,383 | 14,273 | 31,383 | |
Foreign currency translation adjustments | (7,203) | (1,118) | |||
Less: income (loss) attributable to noncontrolling interest | (1,074) | (7,039) | |||
Comprehensive income (loss) related to noncontrolling interest | $ (4,080) | (2,294) | $ (8,277) | (8,157) | |
Minda Stoneridge Instruments Ltd [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity method investment, ownership percentage | 49.00% | 49.00% | |||
Equity method investments | $ 6,872 | $ 6,872 | $ 6,653 | ||
Income (loss) from equity method investments | $ 160 | $ 205 | $ 492 | $ 587 |