Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Feb. 20, 2019 | Jun. 30, 2018 | |
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 | Large Accelerated Filer | ||
Trading Symbol | sri | ||
Entity Common Stock Shares Outstanding | 28,488,935 | ||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2,018 | ||
Entity Well-Known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 961.3 | ||
Entity Voluntary Filers | No |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 81,092 | $ 66,003 |
Accounts receivable, less reserves of $1,243 and $1,109, respectively | 139,076 | 142,438 |
Inventories, net | 79,278 | 73,471 |
Prepaid expenses and other current assets | 20,731 | 21,457 |
Total current assets | 320,177 | 303,369 |
Long-term assets: | ||
Property, plant and equipment, net | 112,213 | 110,402 |
Intangible assets, net | 62,032 | 75,243 |
Goodwill | 36,717 | 38,419 |
Investments and other long-term assets, net | 28,380 | 31,604 |
Total long-term assets | 239,342 | 255,668 |
Total assets | 559,519 | 559,037 |
Current liabilities: | ||
Current portion of debt | 1,533 | 4,192 |
Accounts payable | 87,894 | 79,386 |
Accrued expenses and other current liabilities | 57,880 | 52,546 |
Total current liabilities | 147,307 | 136,124 |
Long-term liabilities: | ||
Revolving credit facility | 96,000 | 121,000 |
Long-term debt, net | 983 | 3,852 |
Deferred income taxes | 14,895 | 18,874 |
Other long-term liabilities | 17,068 | 35,115 |
Total long-term liabilities | 128,946 | 178,841 |
Shareholders' equity: | ||
Preferred Shares, without par value, 5,000 shares authorized, none issued | ||
Common Shares, without par value, 60,000 shares authorized, 28,966 and 28,966 shares issued and 28,488 and 28,180 shares outstanding at December 31, 2018 and 2017, respectively, with no stated value | ||
Additional paid-in capital | 231,647 | 228,486 |
Common Shares held in treasury, 478 and 786 shares at December 31, 2018 and 2017, respectively, at cost | (8,880) | (7,118) |
Retained earnings | 146,251 | 92,264 |
Accumulated other comprehensive loss | (85,752) | (69,560) |
Total shareholders' equity | 283,266 | 244,072 |
Total liabilities and shareholders' equity | $ 559,519 | $ 559,037 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Statement Of Financial Position [Abstract] | ||
Accounts receivable, reserves (in dollars) | $ 1,243 | $ 1,109 |
Preferred shares, no par value | $ 0 | $ 0 |
Preferred shares, authorized | 5,000,000 | 5,000,000 |
Preferred shares, issued | 0 | 0 |
Common shares, no par value | $ 0 | $ 0 |
Common shares, authorized | 60,000,000 | 60,000,000 |
Common shares, issued | 28,966,000 | 28,966,000 |
Common shares, outstanding | 28,488,000 | 28,180,000 |
Common shares held in treasury, shares | 478,000 | 786,000 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Statement [Abstract] | |||
Net sales | $ 866,199 | $ 824,444 | $ 695,977 |
Costs and expenses: | |||
Cost of goods sold | 609,568 | 576,304 | 500,538 |
Selling, general and administrative | 138,553 | 141,893 | 111,145 |
Design and development | 51,074 | 48,877 | 40,212 |
Operating income | 67,004 | 57,370 | 44,082 |
Interest expense, net | 4,720 | 5,783 | 6,277 |
Equity in earnings of investee | (2,038) | (1,636) | (1,233) |
Other (income) expense, net | (736) | 641 | (147) |
Income before income taxes | 65,058 | 52,582 | 39,185 |
Provision (benefit) for income taxes | 11,210 | 7,533 | (36,389) |
Income from continuing operations | 53,848 | 45,049 | 75,574 |
Net income | 53,848 | 45,049 | 75,574 |
Net loss attributable to noncontrolling interest | (130) | (1,887) | |
Net income attributable to Stoneridge, Inc. | $ 53,848 | $ 45,179 | $ 77,461 |
Earnings per share attributable to Stoneridge, Inc.: | |||
Basic (in dollars per share) | $ 1.90 | $ 1.61 | $ 2.79 |
Diluted (in dollars per share) | $ 1.85 | $ 1.57 | $ 2.74 |
Weighted-average shares outstanding: | |||
Basic (in shares) | 28,402,227 | 28,082,114 | 27,763,990 |
Diluted (in shares) | 29,079,826 | 28,771,645 | 28,308,922 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Statement Of Other Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 53,848 | $ 45,049 | $ 75,574 | |
Less: Net loss attributable to noncontrolling interest | (130) | (1,887) | ||
Net income attributable to Stoneridge, Inc. | 53,848 | 45,179 | 77,461 | |
Other comprehensive (loss) income, net of tax attributable to Stoneridge, Inc.: | ||||
Foreign currency translation | (16,627) | 15,473 | 2,401 | |
Benefit plan adjustment | (84) | |||
Unrealized gain (loss) on derivatives | [1] | 435 | (125) | (408) |
Other comprehensive (loss) income, net of tax attributable to Stoneridge, Inc. | (16,192) | 15,348 | 1,909 | |
Comprehensive income attributable to Stoneridge, Inc. | 37,656 | 60,527 | 79,370 | |
Tax expense (benefit) for unrealized gain (loss) on derivatives | $ 156 | $ (68) | $ (10) | |
[1] | Net of tax expense (benefit) of $156, $(68) and $(10) for the years ended December 31, 2018, 2017 and 2016, respectively. |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
OPERATING ACTIVITIES: | |||
Net income | $ 53,848 | $ 45,049 | $ 75,574 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation | 22,786 | 21,490 | 19,998 |
Amortization, including accretion of deferred financing costs | 6,731 | 6,764 | 3,615 |
Deferred income taxes | 2,552 | (5,959) | (38,747) |
Earnings of equity method investee | (2,038) | (1,636) | (1,233) |
Loss (gain) on fixed assets | 333 | (1,796) | 48 |
Share-based compensation expense | 5,632 | 7,265 | 6,134 |
Tax provision (benefit) related to share-based compensation expense | (1,584) | (858) | (977) |
Impairment of Goodwill | 0 | 0 | 0 |
Change in fair value of earn-out contingent consideration | 213 | 7,485 | |
Intangible impairment charge | 202 | ||
Changes in operating assets and liabilities, net of effect of business combination: | |||
Accounts receivable, net | (3,575) | (15,156) | (18,694) |
Inventories, net | (10,002) | (2,132) | 4,519 |
Prepaid expenses and other assets | 2,291 | (10,177) | 2,652 |
Accounts payable | 11,054 | 10,492 | 10,980 |
Accrued expenses and other liabilities | (7,671) | 18,077 | 1,408 |
Net cash provided by operating activities | 80,772 | 78,908 | 65,277 |
INVESTING ACTIVITIES: | |||
Capital expenditures | (29,027) | (32,170) | (24,476) |
Proceeds from sale of fixed assets | 111 | 77 | 652 |
Insurance proceeds for fixed assets | 1,403 | 711 | |
Business acquisition, net of cash acquired | (77,258) | ||
Investment in venture capital fund | (437) | ||
Net cash used for investing activities | (27,950) | (108,640) | (23,824) |
FINANCING ACTIVITIES: | |||
Acquisition of noncontrolling interest, including transaction costs | (1,848) | ||
Revolving credit facility borrowings | 27,500 | 95,000 | |
Revolving credit facility payments | (52,500) | (41,000) | (33,000) |
Proceeds from issuance of debt | 415 | 2,748 | 16,223 |
Repayments of debt | (5,071) | (11,573) | (25,748) |
Other financing costs | (61) | (399) | |
Repurchase of Common Shares to satisfy employee tax withholding | (4,214) | (2,481) | (1,424) |
Tax benefits related to share-based compensation expense | 977 | ||
Net cash (used for) provided by financing activities | (33,870) | 40,785 | (43,371) |
Effect of exchange rate changes on cash and cash equivalents | (3,863) | 4,561 | (2,054) |
Net change in cash and cash equivalents | 15,089 | 15,614 | (3,972) |
Cash and cash equivalents at beginning of period | 66,003 | 50,389 | 54,361 |
Cash and cash equivalents at end of period | 81,092 | 66,003 | 50,389 |
Supplemental disclosure of cash flow information: | |||
Cash paid for interest | 4,997 | 5,746 | 5,786 |
Cash paid for income taxes, net | $ 13,213 | $ 7,093 | 3,386 |
Supplemental disclosure of non-cash operating and financing activities: | |||
Bank payment of vendor payables under short-term debt obligations | $ 3,764 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Number of Common Shares outstanding | Treasury Shares | Additional Paid-In Capital | Retained earnings (accumulated deficit) | Accumulated other comprehensive loss | Noncontrolling interest | Total | |
Balance at Dec. 31, 2015 | $ (4,208) | $ 199,254 | $ (32,105) | $ (69,822) | $ 13,310 | $ 106,429 | ||
Common Stock, Shares, Outstanding, Beginning Balance at Dec. 31, 2015 | 27,912 | |||||||
Treasury Stock, Shares, Beginning Balance at Dec. 31, 2015 | 995 | |||||||
Net income (loss) | 77,461 | (1,887) | 75,574 | |||||
Benefit plan liability adjustments, net | (84) | (84) | ||||||
Unrealized gain (loss) on derivatives | (408) | (408) | [1] | |||||
Currency translation adjustments | 2,401 | 2,339 | 4,740 | |||||
Issuance of restricted Common Shares ( in shares) | 67 | (8) | ||||||
Forfeited restricted Common Shares ( in shares) | (3) | 3 | ||||||
Repurchased Common Shares for treasury | $ (1,424) | (1,424) | ||||||
Repurchased Common Shares for treasury (in shares) | (126) | 126 | ||||||
Tax benefit from share based compensation transactions | 977 | 977 | ||||||
Share-based compensation | 6,273 | 6,273 | ||||||
Balance at Dec. 31, 2016 | $ (5,632) | 206,504 | 45,356 | (67,913) | 13,762 | 192,077 | ||
Common Stock, Shares, Outstanding, Ending Balance at Dec. 31, 2016 | 27,850 | |||||||
Treasury Stock, Shares, Ending Balance at Dec. 31, 2016 | 1,116 | |||||||
Net income (loss) | 45,179 | (130) | 45,049 | |||||
Unrealized gain (loss) on derivatives | (125) | (125) | [1] | |||||
Currency translation adjustments | 15,473 | 826 | 16,299 | |||||
Acquisition of noncontrolling interest, net | 15,820 | (16,995) | $ (14,458) | (15,633) | ||||
Issuance of restricted Common Shares ( in shares) | 462 | (462) | ||||||
Repurchased Common Shares for treasury | $ (1,486) | (1,486) | ||||||
Repurchased Common Shares for treasury (in shares) | (132) | 132 | ||||||
Share-based compensation | 6,162 | 6,162 | ||||||
Balance at Dec. 31, 2017 | $ (7,118) | 228,486 | 92,264 | (69,560) | $ 244,072 | |||
Common Stock, Shares, Outstanding, Ending Balance at Dec. 31, 2017 | 28,180 | 28,180 | ||||||
Treasury Stock, Shares, Ending Balance at Dec. 31, 2017 | 786 | 786 | ||||||
Cumulative effect of a accounting change | ASU 2016-09 | 1,729 | $ 1,729 | ||||||
Net income (loss) | 53,848 | 53,848 | ||||||
Unrealized gain (loss) on derivatives | 435 | 435 | [1] | |||||
Currency translation adjustments | (16,627) | (16,627) | ||||||
Issuance of restricted Common Shares ( in shares) | 461 | (461) | ||||||
Repurchased Common Shares for treasury | $ (1,762) | (1,762) | ||||||
Repurchased Common Shares for treasury (in shares) | (153) | 153 | ||||||
Share-based compensation | 3,161 | 3,161 | ||||||
Balance at Dec. 31, 2018 | $ (8,880) | $ 231,647 | 146,251 | $ (85,752) | $ 283,266 | |||
Common Stock, Shares, Outstanding, Ending Balance at Dec. 31, 2018 | 28,488 | 28,488 | ||||||
Treasury Stock, Shares, Ending Balance at Dec. 31, 2018 | 478 | 478 | ||||||
Cumulative effect of a accounting change | $ 139 | $ 139 | ||||||
[1] | Net of tax expense (benefit) of $156, $(68) and $(10) for the years ended December 31, 2018, 2017 and 2016, respectively. |
Organization and Nature of Busi
Organization and Nature of Business | 12 Months Ended |
Dec. 31, 2018 | |
Basis of Presentation [Abstract] | |
Organization and Nature of Business | 1. Organization and Nature of Business Stoneridge, Inc. and its subsidiaries are global designers and manufacturers of highly engineered electrical and electronic components, modules and systems for the automotive, commercial, off-highway, motorcycle and agricultural vehicle markets. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Summary of Significant Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Basis of Presentation The accompanying consolidated financial statements include the accounts of Stoneridge, Inc. and its wholly-owned and majority-owned subsidiaries (collectively, the “Company”). Intercompany transactions and balances have been eliminated in consolidation. The Company analyzes its ownership interests in accordance with Accounting Standards Codification (“ASC”) “Consolidations (Topic 810)” to determine whether they are a variable interest entity and, if so, whether the Company is the primary beneficiary. On January 31, 2017, the Company acquired Exploitatiemaatschappij Berghaaf B.V. (“Orlaco”), an electronics business which designs, manufactures and sells camera-based vision systems, monitors and related products. The acquisition was accounted for as a business combination, and accordingly, the Company’s consolidated financial statements herein include the results of Orlaco from the date of acquisition. See Acquisitions in Note 2 below to the consolidated financial statements for additional details regarding the Orlaco acquisition. The Company had a 74% controlling interest in PST Eletrônica Ltda. (“ PST”) from December 31, 2011 through May 15, 2017. On May 16, 2017, the Company acquired the remaining 26% noncontrolling interest in PST, which was accounted for as an equity transaction. As such, PST is now a wholly owned subsidiary. See Note 4 to the consolidated financial statements for additional details regarding the acquisition of PST’s noncontrolling interest. The Company’s investment in Minda Stoneridge Instruments Ltd. (“MSIL”) for the years ended December 31, 2018, 2017 and 2016 has been determined to be an unconsolidated entity, and therefore is accounted for under the equity method of accounting based on the Company’s 49% ownership in MSIL. Accounting Estimates The preparation of financial statements in conformity with U.S. Generally Accepted Accounting Principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, including certain self-insured risks and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Because actual results could differ from those estimates, the Company revises its estimates and assumptions as new information becomes available. Cash and Cash Equivalents The Company’s cash and cash equivalents include actively traded money market funds with short-term investments in marketable securities, primarily U.S. government securities. Cash and cash equivalents are stated at cost, which approximates fair value, due to the highly liquid nature and short-term duration of the underlying securities with original maturities of 90 days or less. Accounts Receivable and Concentration of Credit Risk Revenues are principally generated from the automotive, commercial, off-highway, motorcycle and agricultural vehicle markets. The Company’s largest customers are Ford Motor Company and Volvo, primarily related to the Control Devices and Electronics reportable segments and accounted for the following percentages of consolidated net sales for the years ended December 31, 2018, 2017 and 2016: Ford Motor Company 12 % 14 % 17 % Volvo 8 % 6 % 6 % Accounts receivable are recorded at the invoice price, net of an estimate of allowance for doubtful accounts and other reserves. Allowance for Doubtful Accounts The Company evaluates the collectability of accounts receivable based on a combination of factors. In circumstances where the Company is aware of a specific customer’s inability to meet its financial obligations, a specific allowance for doubtful accounts is recorded against amounts due to reduce the net recognized receivable to the amount the Company reasonably believes will be collected. Additionally, the Company reviews historical trends for collectability in determining an estimate for its allowance for doubtful accounts. If economic circumstances change substantially, estimates of the recoverability of amounts due to the Company could be reduced by a material amount. The Company does not have collateral requirements with its customers. Sales of Accounts Receivable In prior years, the Company’s PST segment sold selected accounts receivable on a full recourse basis to an unrelated financial institution in Brazil. PST accounts for these transactions as sales of accounts receivable. As such, in accordance with ASC 860, “Transfers and Servicing”, the sales of accounts receivable are reflected as a reduction of accounts receivable in the consolidated balance sheets and the loss on sale is recorded within interest expense, net in the consolidated statements of operations while the proceeds received from the sale are included in the cash flows from operating activities in the consolidated statements of cash flows. During 2017, PST sold $2,520 (7,983 Brazilian real (“R$”)) of accounts receivable at a loss of $86 (R$273), which represents the implicit interest on the transaction, and received proceeds of $2,434 (R$7,710). PST did not have any remaining credit exposure at December 31, 2017 related to the receivables sold. During 2018, PST did not sell any of its accounts receivable. Inventories Inventories are valued at the lower of cost (using either the first-in, first-out (“FIFO”) or average cost methods) or net realizable value. 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 consist of the following: December 31, Raw materials $ 54,382 $ 47,588 Work-in-progress 4,710 5,806 Finished goods 20,186 20,077 Total inventories, net $ 79,278 $ 73,471 Inventory valued using the FIFO method was $64,745 and $54,837 at December 31, 2018 and 2017, respectively. Inventory valued using the average cost method was $14,533 and $18,634 at December 31, 2018 and 2017, respectively. Pre-production Costs Related to Long-term Supply Arrangements Engineering, research and development and other design and development costs for products sold on long-term supply arrangements are expensed as incurred unless the Company has a contractual guarantee for reimbursement from the customer which are capitalized as pre-production costs. Costs for molds, dies and other tools used to make products sold on long-term supply arrangements for which the Company either has title to the assets or has the noncancelable right to use the assets during the term of the supply arrangement are capitalized in property, plant and equipment and amortized to cost of sales over the shorter of the term of the arrangement or over the estimated useful lives of the assets, typically three to five years. Costs for molds, dies and other tools used to make products sold on long-term supply arrangements for which the Company has a contractual guarantee to a lump sum reimbursement from the customer are capitalized either as a component of prepaid expenses and other current assets or an investment and other long term assets, net within the consolidated balance sheets. Capitalized pre-production costs were $6,875 and $9,260 at December 31, 2018 and 2017, respectively. At December 31, 2018 and 2017, $6,875 and $8,894 were recorded as a component of prepaid expenses and other current assets on the consolidated balance sheets while the remaining amounts were recorded as a component of investments and other long term assets, net. Acquisitions Orlaco On January 31, 2017, Stoneridge B.V., an indirect wholly-owned subsidiary of Stoneridge, Inc., acquired Orlaco. Orlaco designs, manufactures and sells camera-based vision systems, monitors and related products primarily to the heavy off-road machinery, commercial vehicle, lifting crane and warehousing and logistics industries. Stoneridge and Orlaco jointly developed the MirrorEye camera monitor system, which is a system solution to improve the safety and fuel economy for commercial vehicles. The MirrorEye camera monitor system integrates Orlaco’s vision processing technology and Stoneridge’s driver information capabilities as well as the combined software capabilities of both businesses. The acquisition of Orlaco enhances the Stoneridge’s Electronics segment global technical capabilities in vision systems and facilitates entry into new markets. The aggregate consideration for the Orlaco acquisition was €74,939 ($79,675), which included customary estimated adjustments to the purchase price. The Company paid €67,439 ($71,701) in cash. The purchase price was subject to certain customary adjustments set forth in the purchase agreement. The Company is required to pay an additional amount up to €7,500 as contingent consideration (“earn-out consideration”) if certain performance targets are achieved during the first two years. See Note 9 for additional details on the Orlaco contingent consideration. The acquisition date fair value of the total consideration transferred consisted of the following: Cash $ 79,675 Fair value of earn-out consideration and other adjustments 4,208 Total purchase price $ 83,883 The following table summarizes the final fair value of the assets acquired and liabilities assumed at the acquisition date (including measurement period adjustments): At January 31, 2017 Cash $ 2,165 Accounts receivable 7,929 Inventory 9,409 Prepaid and other current assets 298 Property, plant and equipment 6,668 Identifiable intangible assets 38,739 Other long-term assets 6 Total identifiable assets acquired 65,214 Accounts payable 3,020 Other current liabilities 834 Deferred tax liabilities 10,206 Warranty liability 899 Total liabilities assumed 14,959 Net identifiable assets acquired 50,255 Goodwill 33,628 Net assets acquired $ 83,883 Assets acquired and liabilities assumed were recorded at estimated fair values based on management’s estimates, available information, and reasonable and supportable assumptions. Also, the Company utilized a third-party to assist with certain estimates of fair values, including: · Fair value estimate for inventory was based on a comparative sales method · Fair value estimate for property, plant and equipment was based on appraised values utilizing cost and market approaches · Fair values for intangible assets were based on a combination of market and income approaches, including the relief from royalty method · Fair value for the earn-out consideration was based on a Monte Carlo simulation analysis utilizing forecasted earnings before interest, taxes, depreciation and amortization (“EBITDA”) for the 2017 and 2018 earn-out period as well as a growth rate reduced by the market required rate of return These fair value measurements are classified within Level 3 of the fair value hierarchy. See Note 10 for details on fair value hierarchy. Goodwill is calculated as the excess of the fair value of consideration transferred over the fair market value of the acquired identifiable assets and assumed liabilities and represents the future economic benefits arising from other assets acquired that could not be separately recognized. The goodwill is not deductible for income tax purposes. Of the $38,739 of acquired identifiable intangible assets, $27,518 was assigned to customer lists with a 15-year useful life; $5,142 was assigned to trademarks with a 20-year useful life; and $6,079 was assigned to technology with a 7-year weighted-average useful life. The Company recognized $1,259 of acquisition related costs in the consolidated statement of operations as a component of selling, general and administrative (“SG&A”) expense for the year ended December 31, 2017. There were no acquisition related costs for the year ended December 31, 2018. The Company’s statement of operations included $1,636 of expense in cost of goods sold (“COGS”) for the year ended December 31, 2017 associated with the step-up of the Orlaco inventory to fair value. The Company’s statement of operations included $369 and $4,853 of expense for the fair value adjustment for earn-out consideration in SG&A expenses for the year ended December 31, 2018 and 2017, respectively. The following unaudited pro forma information reflects the Company’s consolidated results of operations as if the acquisition had taken place on January 1, 2016. The unaudited pro forma information is not necessarily indicative of the results of operations that the Company would have reported had the transaction actually occurred at the beginning of these periods, nor is it necessarily indicative of future results. Year ended December 31 Net sales $ 829,474 $ 752,864 Net income attributable to Stoneridge, Inc. and subsidiaries $ 45,283 $ 8,218 Property, Plant and Equipment Property, plant and equipment are recorded at cost and consist of the following: December 31, Land and land improvements $ 4,619 $ 4,863 Buildings and improvements 37,234 37,581 Machinery and equipment 212,225 192,107 Office furniture and fixtures 9,929 10,070 Tooling 75,620 75,038 Information technology 27,179 27,466 Vehicles 872 881 Leasehold improvements 2,799 2,841 Construction in progress 23,064 24,312 Total property, plant, and equipment 393,541 375,159 Less: accumulated depreciation (281,328) (264,757) Property, plant and equipment, net $ 112,213 $ 110,402 Depreciation is provided using the straight-line method over the estimated useful lives of the assets. Depreciation expense for the years ended December 31, 2018, 2017 and 2016 was $22,786, $21,490 and $19,998, respectively. Depreciable lives within each property classification are as follows: Buildings and improvements 10-40 years Machinery and equipment 3-10 years Office furniture and fixtures 3-10 years Tooling 2-5 years Information technology 3-7 years Vehicles 3-5 years Leasehold improvements shorter of lease term or 3-10 years Maintenance and repair expenditures that are not considered improvements and do not extend the useful life of the property, plant and equipment are charged to expense as incurred. Expenditures for improvements and major renewals are capitalized. When assets are retired or otherwise disposed of, the related cost and accumulated depreciation are removed from the accounts, and any gain or loss on the disposition is recorded in the consolidated statements of operations as a component of SG&A expenses. Impairment of Long-Lived or Finite-Lived Assets The Company reviews the carrying value of its long-lived assets and finite-lived intangible assets for impairment when events or circumstances indicate that their carrying value may not be recoverable. Factors the Company considers important that could trigger testing of the related asset groups for an impairment include current period operating or cash flow losses combined with a history of operating or cash flow losses, a projection or forecast that demonstrates continuing losses, significant adverse changes in the business climate within a particular business or current expectations that a long-lived asset will be sold or otherwise disposed of significantly before the end of its estimated useful life. To test for impairment, the estimated undiscounted cash flows expected to be generated from the use and disposal of the asset or asset group is compared to its carrying value. An asset group is established by identifying the lowest level of cash flows generated by the group of assets that are largely independent of cash flows of other assets. If cash flows cannot be separately and independently identified for a single asset, we will determine whether an impairment has occurred for the group of assets for which we can identify projected cash flows. If these undiscounted cash flows are less than their respective carrying values, an impairment charge would be recognized to the extent that the carrying values exceed estimated fair values. The estimation of undiscounted cash flows and fair value requires us to make assumptions regarding future operating results over the life of the asset or the life of the primary asset in the asset group. The results of the impairment testing are dependent on these estimates which require judgment. The occurrence of certain events, including changes in economic and competitive conditions, could impact cash flows eventually realized and management’s ability to accurately assess whether an asset is impaired. Goodwill and Other Intangible Assets Goodwill The total purchase price associated with acquisitions is allocated to the acquisition date fair values of identifiable assets acquired and liabilities assumed with the excess purchase price assigned to goodwill. Goodwill was $36,717 and $38,419 at December 31, 2018 and 2017, respectively, all of which relates to the Electronics segment. Goodwill is not amortized, but instead is tested for impairment at least annually, or earlier when events and circumstances indicate that it is more likely than not that such assets have been impaired, by applying a fair value-based test. In conducting our annual impairment assessment testing, we first perform a qualitative assessment of whether it is more likely than not that a reporting unit’s fair value is less than its carrying amount. If not, no further goodwill impairment testing is performed. If it is more likely than not that a reporting unit’s fair value is less than its carrying amount, or if we elect not to perform a qualitative assessment of a reporting unit, we then compare the fair value of the reporting unit to the related net book value. If the net book value of a reporting unit exceeds its fair value, an impairment loss is measured and recognized. The Company utilizes an income statement approach to estimate the fair value of a reporting unit and a market valuation approach to further support this analysis. The income approach is based on projected debt-free cash flow which is discounted to the present value using discount factors that consider the timing and risk of cash flows. We believe that this approach is appropriate because it provides a fair value estimate based on the reporting unit’s expected long-term operating cash flow performance. This approach also mitigates the impact of cyclical trends that occur in the industry. Fair value is estimated using internally developed forecasts, as well as commercial and discount rate assumptions. The discount rate used is the value-weighted average of our estimated cost of equity and of debt (“cost of capital”) derived using both known and estimated customary market metrics. Our weighted average cost of capital is adjusted to reflect a risk factor, if necessary. Other significant assumptions include terminal value growth rates, terminal value margin rates, future capital expenditures and changes in future working capital requirements. While there are inherent uncertainties related to the assumptions used and to management’s application of these assumptions to this analysis, we believe that the income statement approach provides a reasonable estimate of the fair value of a reporting unit. The market valuation approach is used to further support our analysis. There was no impairment of goodwill for the years ended December 31, 2018, 2017 or 2016. Goodwill and changes in the carrying amount of goodwill by segment for the years ended December 31, 2018 and 2017 were as follows: Electronics Balance at January 1, 2018 $ 38,419 Currency translation (1,702) Balance at December 31, 2018 $ 36,717 Electronics Balance at January 1, 2017 $ 931 Acquisition of business 33,628 Currency translation 3,860 Balance at December 31, 2017 $ 38,419 The Company’s cumulative goodwill impairment loss since inception was $300,083 at December 31, 2018 and 2017, which includes PST’s goodwill impairment in 2014 and goodwill impairment recorded by the Company’s Control Devices segment in 2008 and 2004. Other Intangible Assets Other intangible assets, net at December 31, 2018 and 2017 consisted of the following: Acquisition Accumulated As of December 31, 2018 cost amortization Net Customer lists $ 52,200 $ (14,549) $ 37,651 Tradenames 20,689 (5,884) 14,805 Technology 15,581 (6,005) 9,576 Total $ 88,470 $ (26,438) $ 62,032 Acquisition Accumulated As of December 31, 2017 cost amortization Net Customer lists $ 57,672 $ (12,695) $ 44,977 Tradenames 23,546 (5,646) 17,900 Technology 17,443 (5,077) 12,366 Other 41 (41) - Total $ 98,702 $ (23,459) $ 75,243 Other intangible assets, net at December 31, 2018 for customer lists, tradenames, and technology include $25,501, $4,939 and $4,566, respectively, related to the Electronics segment and customer lists, tradenames and technology of $12,150, $9,866 and $5,010, respectively, related to the PST segment. The Company recognized $6,406, $6,440 and $3,259 of amortization expense related to intangible assets in 2018, 2017 and 2016, respectively. Amortization expense is included as a component of SG&A on the consolidated statements of operations. Annual amortization expense for intangible assets is estimated to be approximately $6,205 for the years 2019 through 2023. The weighted-average remaining amortization period is approximately 12 years. For the year ended December 31, 2018 the Company recognized $202 of intangible impairment charge related to the Electronics segment customer lists as a result of the European Aftermarket restructuring as noted in Note 13. There were no intangible impairment charges for the year ended December 31, 2017. Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consist of the following: As of December 31 Compensation related liabilities $ 18,717 $ 22,429 Contingent consideration (A) 8,602 - Product warranty and recall obligations 7,211 6,867 Accrued income taxes 1,507 6,897 Other (B) 21,843 16,353 Total accrued expenses and other current liabilities $ 57,880 $ 52,546 (A) Accrued contingent consideration includes the Orlaco contingent consideration, as referenced in Note 2 and Note 10, and is included in accrued expenses and other current liabilities for the year ended December 31, 2018 and was included in other long-term liabilities for the year ended December 31, 2017. (B) “Other” is comprised of miscellaneous accruals, none of which individually contributed a significant portion of the total. Income Taxes The Company accounts for income taxes using the liability method. Deferred income taxes reflect the tax consequences on future years of differences between the tax basis of assets and liabilities and their financial reporting amounts. Future tax benefits are recognized to the extent that realization of such benefits is more likely than not to occur. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in the period that includes the enactment date. Deferred tax assets are recognized to the extent that these assets are more likely than not to be realized (See Note 6). In making such a determination, the Company considers all available positive and negative evidence, including future release of existing taxable temporary differences, projected future taxable income, tax planning strategies, and results of recent operations. Release of some or all of a valuation allowance would result in the recognition of certain deferred tax assets and a decrease to income tax expense for the period the release is recorded. The Company’s policy is to provide for uncertain tax positions and the related interest and penalties based upon management’s assessment of whether a tax benefit is more likely than not to be sustained upon examination by tax authorities. To the extent the Company prevails in matters for which a liability for an unrecognized tax benefit is established or is required to pay amounts in excess of the liability, the Company’s effective tax rate in a given financial statement period may be affected. The Tax Legislation created a provision known as Global Intangible Low-Taxed Income (“GILTI”) that imposes a tax on certain earnings of foreign subsidiaries. The Company has made an accounting policy election to reflect GILTI taxes, if any, as a current income tax expense in the period incurred. Currency Translation The financial statements of foreign subsidiaries, where the local currency is the functional currency, are translated into U.S. dollars using exchange rates in effect at the period end for assets and liabilities and average exchange rates during each reporting period for the results of operations. Adjustments resulting from translation of financial statements are reflected as a component of accumulated other comprehensive loss in the Company’s consolidated balance sheets. Foreign currency transactions are remeasured into the functional currency using translation rates in effect at the time of the transaction with the resulting adjustments included on the consolidated statements of operations within other expense, net. These foreign currency transaction losses (gains), including the impact of hedging activities, were $(487), $500 and $(268) for the years ended December 31, 2018, 2017 and 2016, respectively. Revenue Recognition and Sales Commitments The Company recognizes revenue when obligations under the terms of a contract with our customer are satisfied; generally this occurs with the transfer of control of our products and services, which is usually when the parts are shipped or delivered to the customer’s premises. The Company recognizes monitoring service revenues over time, as the services are provided to customers. Revenue is measured as the amount of consideration we expect to receive in exchange for transferring goods or providing services. The transaction price will include estimates of variable consideration to the extent it is probable that a significant reversal of revenue recognized will not occur. Incidental items that are not significant in the context of the contract are recognized as expense. The Company collects certain taxes and fees on behalf of government agencies and remits such collections on a periodic basis. The taxes are collected from customers but are not included in net sales. Estimated returns are based on historical authorized returns. The Company often enters into agreements with its customers at the beginning of a given vehicle’s expected production life. Once such agreements are entered into, it is the Company’s obligation to fulfill the customers’ purchasing requirements for the entire production life of the vehicle. These agreements are subject to potential renegotiation from time to time, which may affect product pricing. See Note 3 for additional disclosure. Shipping and Handling Costs Shipping and handling costs are included in COGS on the consolidated statements of operations. Product Warranty and Recall Reserves 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 the product warranty and recall reserve is included as a component of accrued expenses and other current liabilities on the consolidated balance sheets. Product warranty and recall includes $3,283 and $3,112 of a long-term liability at December 31, 2018 and 2017, respectively, which is included as a component of other long-term liabilities on the consolidated balance sheets. The following provides a reconciliation of changes in the product warranty and recall reserve: Year ended December 31, Product warranty and recall at beginning of period $ 9,979 $ 9,344 Accruals for warranties established during period 6,217 4,933 Assumed warranty liability related to Orlaco - 899 Aggregate changes in pre-existing liabilities due to claim developments 646 4,899 Settlements made during the period (5,831) (10,407) Foreign currency translation (517) 311 Product warranty and recall at end of period $ 10,494 $ 9,979 Design and Development Costs Expenses associated with the development of new products, and changes to existing products are charged to expense as incurred, and are included in the Company’s consolidated statements of operations as a separate component of costs and expenses. These product development costs amounted to $51,074, $48,877 and $40,212 for the years ended December 31, 2018, 2017 and 2016, respectively, or 5.9%, 5.9% and 5.8% of net sales for these respective periods. Research and Development Activities The Company enters into research and development contracts with certain customers, which generally provide for reimbursement of costs. The Company incurred and was reimbursed for contracted research and development costs of $16,540, $14,946 and $12,764 for the years ended December 31, 2018, 2017 and 2016, respectively. Share-Based Compensation At December 31, 2018, the Company had two types of share-based compensation plans: (1) Long-Term Incentive Plan for employees and (2) the Amended Directors’ Restricted Shares Plan, for non-employee directors. The Long-Term Incentive Plan is made up of the Long-Term Incentive Plan which expired on June 30, 2007, the Amended and Restated Long-Term Incentive Plan, as amended, which expired on April 24, 2016 and the 2016 Long-Term Incentive Plan that was approved by shareholders on May 10, 2016, and expires on May 10, 2026. Total compensation expense recognized as a component of SG&A expense on the consolidated statements of operations for share-based compensation arrangements was $5,632, including the forfeiture of certain grants associated with employee resignations, $7,265, related to higher attainment of performance-based awards and accelerated expense associated with the retirement of eligible employees, and $6,134, including $545 from the accelerated vesting in connection with the retirement of the Company’s former President and Chief Executive Officer, for the years ended December 31, 2018, 2017 and 2016, respectively. There was no share-based compensation expense capitalized in inventory during 2018, 2017 or 2016. Financial Instruments and Derivative Financial Instruments Financial instruments, including derivative financial instruments, held by the Company include cash and cash equivalents, accounts receivable, accounts payable, long-term debt and foreign currency forward contracts. The carrying value of cash and cash equivalents, accounts receivable and accounts payable is considered to be representative of fair value because of the short maturity of these instruments. See Note 10 for fair value disclosures of the Company’s financial instruments. Common Shares Held in Treasury The Company accounts for Common Shares held in treasury under the cost method (applied on a FIFO basis) and includes such shares as a reduction of total shareholders’ equity. Earnings Per Share Basic earnings per share was computed by dividing net income attributable to Stoneridge Inc. by the weighted-average number of Common Shares outstanding for each respective period. Diluted earnings per share was calculated by dividing net income attributable to Stoneridge, Inc. by the weighted-average of all potentially dilutive Common Shares that were outstanding during the periods presented. Actual weighted-average Common Shares outstanding used in calculating basic and diluted net income per share were as follows: Year ended December 31, Basic weighted-average Common Shares outstanding 28,402,227 28,082,114 27,763,990 Effect of dilutive shares 677,599 689,531 544,932 Diluted weighted-average Common Shares outstanding 29,079,826 28,771,645 28,308,922 There were no performance-based restricted Common Shares outstanding at December 31, 2018, 2017 or 2016. There were also 628,220, 766,538 and 843,140 performance-based right to receive Common Shares outstanding at December 31, 2018, 2017 and 2016. These performance-based restricted and right to receive |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2018 | |
Revenue [Abstract] | |
Revenue | 3. Revenue The Company adopted ASC 606 using the modified retrospective method as applied to customer contracts that were not completed as of January 1, 2018. As a result, financial information for reporting periods beginning after January 1, 2018 are presented under ASC 606, while comparative financial information has not been adjusted and continues to be reported in accordance with the Company’s historical accounting policy for revenue recognition prior to the adoption of ASC 606. The Company did not record a cumulative adjustment related to the adoption of ASC 606, and the effects of the adoption were not significant. Revenue is recognized when obligations under the terms of a contract with our customer are satisfied; generally this occurs with the transfer of control of our products and services, which is usually when the parts are shipped or delivered to the customer’s premises. Revenue is measured as the amount of consideration we expect to receive in exchange for transferring goods or providing services. The transaction price will include estimates of variable consideration to the extent it is probable that a significant reversal of revenue recognized will not occur. Incidental items that are not significant in the context of the contract are recognized as expense. The expected costs associated with our base warranties continue to be recognized as expense when the products are sold. Customer returns only occur if products do not meet the specifications of the contract and are not connected to any repurchase obligations of the Company. The Company does not have any financing components or significant payment terms as payment occurs shortly after the point of sale. Taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction that are collected by the Company from a customer are excluded from revenue. Amounts billed to customers related to shipping and handling costs are included in net sales in the consolidated statements of operations. Shipping and handling costs associated with outbound freight after control over a product is transferred to the customer are accounted for as a fulfillment cost and are included in cost of sales. Revenue by Reportable Segment Control Devices. Our Control Devices segment designs and manufactures products that monitor, measure or activate specific functions within a vehicle. This segment includes product lines such as sensors, actuators, valves and switches. We sell these products principally to the automotive market in the North American, European, and Asia Pacific regions. To a lesser extent, we also sell these products to the commercial vehicle and agricultural markets in our North America and European regions. Our customers included in these markets primarily consist of original equipment manufacturers (“OEM”) and companies supplying components directly to the OEMs (“Tier 1 supplier”). Electronics. Our Electronics segment designs and manufactures electronic instrument clusters, electronic control units, driver information systems, camera-based vision systems, monitors and related products. These products are sold principally to the commercial vehicle market primarily through our OEM and aftermarket channels in the North American and European regions, and to a lesser extent, the Asia Pacific region. The camera-based vision systems and related products are sold principally to the off-highway vehicle market in the North American and European regions. PST. Our PST segment primarily serves the South American region and specializes in the design, manufacture and sale of in-vehicle audio and video devices, electronic vehicle security alarms, convenience accessories, vehicle tracking devices and monitoring services primarily for the automotive and motorcycle markets. PST sells its products through the aftermarket distribution channel, to factory authorized dealer installers, also referred to as original equipment services, direct to OEMs and through mass merchandisers. In addition, monitoring services and tracking devices are sold directly to corporate and individual consumers. The following tables disaggregate our revenue by reportable segment and geographical location (1) for the periods ended December 31, 2018 and 2017: Year ended Control Devices Electronics PST Consolidated December 31 Net Sales: North America $ 395,148 $ 409,596 $ 85,363 $ 62,174 $ - $ - $ 480,511 $ 471,770 South America - - - - 80,175 94,533 80,175 94,533 Europe 14,727 8,164 255,400 216,577 - - 270,127 224,741 Asia Pacific 31,422 29,768 3,964 3,632 - - 35,386 33,400 Total net sales $ 441,297 $ 447,528 $ 344,727 $ 282,383 $ 80,175 $ 94,533 $ 866,199 $ 824,444 (1) Company sales based on geographic location are where the sale originates not where the customer is located. Performance Obligations For OEM and Tier 1 supplier customers, the Company typically enters into contracts with its customers to provide serial production parts that consist of a set of documents including, but not limited to, an award letter, master purchase agreement and master terms and conditions. For each production product, the Company enters into separate purchase orders that contain the product specifications and an agreed-upon price. The performance obligation does not exist until a customer release is received for a specific number of parts. The majority of the parts sold to OEM and Tier 1 suppliers are specifically customized to the specific customer, with the exception of off-highway products that are common across all customers. The transaction price is equal to the contracted price per part and there is no expectation of material variable consideration in the transaction price. For most customer contracts, the Company does not have an enforceable right to payment at any time prior to when the parts are shipped or delivered to the customer; therefore, the Company recognizes revenue at the point in time it satisfies a performance obligation by transferring control of a part to the customer. Certain customer contracts contain an enforceable right to payment if the customer terminates the contract for convenience and therefore are recognized over time using the cost to complete input method. Our aftermarket products are focused on meeting the demand for repair and replacement parts, compliance parts and accessories and are sold primarily to aftermarket distributors and mass retailers in our South American, European and North American markets. Aftermarket products have one type of performance obligation which is the delivery of aftermarket parts and spare parts. For aftermarket customers, the Company typically has standard terms and conditions for all customers. In addition, aftermarket products have alternative use as they can be sold to multiple customers. Revenue for aftermarket part production contracts is recognized at a point in time when the control of the parts transfer to the customer which is based on the shipping terms. Aftermarket contracts may include variable consideration related to discounts and rebates and is included in the transaction price upon recognizing the product revenue. A small portion of the Company’s sales are comprised of monitoring services that include both monitoring devices and fees to individual, corporate, fleet and cargo customers in our PST segment. These monitoring service contracts are generally not capable of being distinct and are accounted for as a single performance obligation. We recognize revenue for our monitoring products and services contracts over the life of the contract. There is no variable consideration associated with these contracts. The Company has the right to consideration from a customer in the amount that corresponds directly with the value to the customer of the Company’s performance to date. Therefore the Company recognizes revenue over time using the practical expedient ASC 606-10-55-18 in the amount the Company has a “right to invoice” rather than selecting an output or input method. |
Investments
Investments | 12 Months Ended |
Dec. 31, 2018 | |
Investments [Abstract] | |
Investments | 4. Investments Minda Stoneridge Instruments Ltd. The Company has a 49% interest in MSIL, a company based in India that manufactures electronics, instrumentation equipment and sensors for the motorcycle, commercial vehicle and automotive markets. The investment is accounted for under the equity method of accounting. The Company’s investment in MSIL, recorded as a component of investments and other long-term assets, net on the consolidated balance sheets, was $11,288 and $10,131 as of December 31, 2018 and 2017, respectively. Equity in earnings of MSIL included in the consolidated statements of operations were $2,038, $1,636 and $1,233 for the years ended December 31, 2018, 2017 and 2016, respectively. PST Eletrônica Ltda. The Company had a 74% controlling interest in PST from December 21, 2011 through May 15, 2017. On May 16, 2017, the Company acquired the remaining 26% noncontrolling interest in PST for $1,500 in cash along with earn-out consideration. The Company will be required to pay additional earn-out consideration, which is not capped, based on PST’s financial performance in either 2020 or 2021. The preliminary estimated fair value of the earn-out consideration as of the acquisition date was $10,180, and was based on discounted cash flows utilizing forecasted EBITDA in 2020 and 2021. The Company’s statement of operations for the years ended December 31, 2018 and 2017 included $(156) and $2,632, respectively, of (income) expense for the fair value adjustment for earn-out consideration in SG&A expense. See Note 10 for the fair value and foreign currency adjustments of the earn-out consideration. This fair value measurement is classified within Level 3 of the fair value hierarchy. The transaction was accounted for as an equity transaction, and therefore no gain or loss was recognized in the statement of operations or comprehensive income. The noncontrolling interest balance on the May 16, 2017 acquisition date was $14,458, of which $31,453 and ($16,995) was related to the carrying value of the investment and foreign currency translation, respectively, and accordingly these amounts were reclassified to additional paid-in capital and accumulated other comprehensive loss, respectively. The following table sets forth a summary of the change in noncontrolling interest: Year ended December 31 Noncontrolling interest at beginning of period $ 13,762 $ 13,310 Net loss (130) (1,887) Foreign currency translation 826 2,339 Comprehensive income 696 452 Acquisition of noncontrolling interest (14,458) - Noncontrolling interest at end of period $ - $ 13,762 PST has dividends payable to former noncontrolling interest holders of R$23,204 Brazilian real ($5,980) and R$22,330 Brazilian real ($6,742) as of December 31, 2018 and 2017, respectively. The dividends payable balance includes monetary correction of R$2,752 Brazilian real ($709) and R$1,879 Brazilian real ($567) as of December 31, 2018 and 2017, respectively. The dividend is payable on or before January 1, 2020, and is subject to monetary correction based on the Brazilian National Extended Consumer Price inflation index (“IPCA”). The dividend payable related to PST is recorded within other current liabilities on the consolidated balance sheet. Other Investments In December 2018, the Company entered into an agreement to make a $10,000 investment in a fund managed by Autotech Ventures (“Autotech”), a venture capital firm focused on ground transportation technology. The Company’s $10,000 investment in the Autotech fund will be contributed over the expected ten year life of the fund. The fourth quarter of 2018 contribution of $437 to the Autotech Ventures fund was recorded in investments and other long-term assets in the consolidated balance sheet as of December 31, 2018. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2018 | |
Debt [Abstract] | |
Debt | 5. Debt December 31, 2018 December 31, 2017 Interest rates at December 31, 2018 Maturity Revolving Credit Facility Credit Facility $ 96,000 $ 121,000 3.40% - 3.58% September 2021 Debt PST short-term obligations 989 - 10.0% - 11.27% PST long-term notes 1,527 8,016 November 2021 Other - 28 Total debt 2,516 8,044 Less: current portion (1,533) (4,192) Total long-term debt, net $ 983 $ 3,852 Revolving Credit Facility On November 2, 2007, the Company entered into an asset-based credit facility which permitted 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”). The Amended Agreement provides for a $300,000 revolving credit facility (the “Credit Facility”), which replaced the Company’s existing $100,000 asset-based credit facility and includes a letter 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 extended the termination date to September 12, 2019 from December 1, 2016. On March 26, 2015, the Company entered into Amendment No. 1 of the Amended Agreement which amended 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 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. On February 23, 2016, the Company entered into Amendment No. 2 of the Amended Agreement which amended and waived any default or potential defaults with respect to the pledging as collateral additional shares issued by a wholly owned subsidiary and newly issued shares associated with the formation of a new subsidiary. On August 12, 2016, the Company entered into Amendment No. 3 of the Amended Agreement which extended the expiration date by two years to September 12, 2021, increased the borrowing sub-limit for the Company’s foreign subsidiaries by $30,000 to $80,000, increased the basket of permitted loans and investments in foreign subsidiaries by $5,000 to $30,000, and provided additional flexibility to the Company for certain permitted corporate transactions involving its foreign subsidiaries as defined, in the Amended Agreement. As a result of Amendment No. 3, the Company capitalized deferred financing costs of $399, which will be amortized over the remaining term of the Credit Facility. On January 30, 2017, the Company entered into Consent and Amendment No. 4 to the Amended Agreement which amended certain definitions, schedules and exhibits of the Credit Facility, consented to a Dutch Reorganization, and consented to the Orlaco acquisition. As a result of Amendment No. 4, the Company capitalized deferred financing costs of $61, which will be amortized over the remaining term of the Credit Facility. On September 11, 2018, the Company entered into Amendment No. 5 to the Amended Agreement which extended financial accommodations to permit the Company to invest in certain funds in an amount that does not exceed $10,000. On October 26, 2018, the Company entered into Consent and Amendment No. 6 to the Amended Agreement which amended certain definitions, sections and schedules of the Credit Facility and consented to realignment of certain foreign subsidiaries, and permits the Company to repurchase the Company’s outstanding common shares in an amount that does not exceed $50,000. 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 forth 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 Amended Agreement 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. Borrowings outstanding on the Credit Facility at December 31, 2018 and 2017 were $96,000 and $121,000, respectively. Borrowings decreased under the Credit Facility due to voluntary principal repayments. The Company has outstanding letters of credit of $1,815 and $2,008 at December 31, 2018 and 2017, respectively. Debt PST maintains short-term and long-term notes used for working capital purposes which have fixed interest rates. The weighted-average interest rates of short-term and long-term debt of PST at December 31, 2018 was 10.45% and 8.00%, respectively. Depending on the specific note, interest is payable either monthly or annually. Scheduled maturities of PST debt at December 31, 2018 are as follows: $1,533 in 2019, $513 in 2020 and $470 in 2021. 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 $2,259 and $2,439 at December 31, 2018 and 2017, respectively. At December 31, 2018 and 2017, there was no balance outstanding on this overdraft credit line. The Company was in compliance with all Credit Facility and debt covenants at December 31, 2018 and 2017. At December 31, 2018, the future maturities of the Credit Facility and debt were as follows: Year ended December 31, 2019 $ 1,533 2020 513 2021 96,470 2022 - 2023 - Total $ 98,516 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Taxes [Abstract] | |
Income Taxes | 6. Income Taxes The income tax expense (benefit) included in the accompanying consolidated statement of operations represents federal, state and foreign income taxes. The components of income before income taxes and the provision for income taxes consist of the following: Year ended December 31 Income before income taxes: Domestic $ 32,907 $ 36,657 $ 35,088 Foreign 32,151 15,925 4,097 Total income before income taxes $ 65,058 $ 52,582 $ 39,185 Provision for income taxes: Current: Federal $ 2,370 $ 2,478 $ 760 State and foreign 6,288 11,014 2,575 Total current expense 8,658 13,492 3,335 Deferred: Federal $ 3,788 $ (2,585) $ (37,828) State and foreign (1,236) (3,374) (1,896) Total deferred benefit 2,552 (5,959) (39,724) Total income tax (benefit) expense $ 11,210 $ 7,533 $ (36,389) A reconciliation of the Company’s effective income tax rate to the statutory federal tax rate is as follows: Year ended December 31 Statutory U.S. federal income tax rate 21.0 % 35.0 % 35.0 % State income taxes, net of federal tax benefit 0.1 (0.8) 1.9 Tax credits and incentives (7.9) (4.2) (0.8) Foreign tax rate differential 1.1 (4.5) (4.7) Impact of change in enacted tax law (1.3) (17.2) - Change in valuation allowance (3.0) 4.2 (121.6) U.S. tax on foreign earnings 1.0 - - Compensation and benefits 1.3 (1.1) 0.3 Other (A) 4.9 2.9 (2.9) Effective income tax rate 17.2 % 14.3 % (92.8) % (A) The amount for 2018 includes the impact of reducing tax attributes due to legal entity consolidation which is completely offset with change in valuation allowance. The Company recognized income tax expense (benefit) of $11,210 or 17.2%, $7,533 or 14.3% and $(36,389) or (92.8)% of income before income taxes for federal, state and foreign income taxes for the years ended December 31, 2018, 2017 and 2016, respectively. The change in tax expense for the year ended December 31, 2018 compared to the same period for 2017 was predominantly due to the impact of the enactment of the Tax Legislation in the United States on December 22, 2017, and the release of the U.S. federal, certain state and foreign valuation allowances in 2016. The Tax Legislation significantly revises the U.S. corporate income tax by, among other things, lowering corporate income tax rates and imposing a one-time transition tax on deemed repatriated earnings of foreign subsidiaries. The impact of the Tax Legislation in 2017 was a tax benefit of $(9,062), consisting of an increase in tax expense of $6,207 due to the one-time deemed repatriation tax, offset by the favorable impact of the reduced tax rate on the Company’s net deferred tax liabilities and other deferred tax adjustments of $(15,269) related to certain earnings included in the one-time transition tax. Pursuant to the guidance within SEC Staff Accounting Bulletin No. 118 (“SAB 118”), as of December 31, 2017, the Company recognized the provisional effects of the enactment of the Tax Legislation for which measurement could be reasonably estimated. Adjustments to the provisional amounts recorded by the Company as of December 31, 2017 that are identified within a subsequent measurement period of up to one year from the enactment date are required to be included as an adjustment to tax expense from continuing operations in the period the amounts are determined. During 2018, the Department of Treasury issued additional guidance with respect to several provisions of the Tax Legislation. The Company completed its accounting for the effects of the Tax Legislation under SAB 118 and recognized a tax benefit of $(131) in the third quarter of 2018 and a tax expense of $710 in the fourth quarter of 2018. The adjustments to the provisional amounts are primarily related to the one-time transition tax and the impact of the reduced tax rate on the Company’s net deferred tax liabilities. The Tax Legislation also created a provision known as Global Intangible Low-Taxed Income (“GILTI”) that imposes a tax on certain earnings of foreign subsidiaries. The Company has made an accounting policy election to reflect GILTI taxes, if any, as a current income tax expense in the period incurred. The Company has not provided deferred taxes related to the earnings of certain foreign subsidiaries that are not considered indefinitely reinvested, however, it has recognized a deferred tax asset related to the expected foreign currency impact upon repatriation. Any foreign tax on repatriation of earnings not considered to be indefinitely reinvested is expected to be immaterial. At December 31, 2018, the aggregate undistributed earnings of our foreign subsidiaries amounted to $55,707. Significant components of the Company’s deferred tax assets and liabilities were as follows: As of December 31 Deferred tax assets: Inventories $ 2,135 $ 1,921 Employee compensation and benefits 1,225 2,647 Accrued liabilities and reserves 4,181 5,187 Property, plant and equipment 647 1,045 Tax loss carryforwards 8,437 10,929 Tax credit carryforwards 26,221 29,744 Other 410 416 Gross deferred tax assets 43,256 51,889 Less: Valuation allowance (8,962) (11,986) Deferred tax assets less valuation allowance 34,294 39,903 Deferred tax liabilities: Property, plant and equipment (2,545) (3,489) Intangible assets (16,683) (22,067) Outside basis difference in foreign subsidiary (13,750) (13,750) Other (4,090) (3,243) Gross deferred tax liabilities (37,068) (42,549) Net deferred tax liabilities $ (2,774) $ (2,646) The balance sheet classification of our net deferred tax asset is shown below: Year ended December 31 Long-term deferred tax assets $ 12,121 $ 16,228 Long-term deferred tax liabilities (14,895) (18,874) Net deferred tax liabilities $ (2,774) $ (2,646) Based on the Company’s review of both positive and negative evidence regarding the realizability of deferred tax assets at December 31, 2018, a valuation allowance continues to be recorded against certain deferred tax assets based upon the conclusion that it was more likely than not they would not be realized. The future provision for income taxes may be significantly impacted by changes to valuation allowances in certain countries. The Company has net operating loss carry forwards of $64,189 and $24,745 for state and foreign tax jurisdictions, respectively. The state net operating losses expire from 2025-2034 or have indefinite lives and the foreign net operating losses expire from 2019-2023 or have indefinite lives. The Company has general business and foreign tax credit carry forwards of $23,404, $1,493 and $1,324 for U.S. federal, state and foreign jurisdictions, respectively. The U.S. federal general business credits, if unused, begin to expire in 2024, and the state and foreign tax credits expire at various times. The following is a reconciliation of the Company’s total gross unrecognized tax benefits: Balance as of January 1 $ 3,645 $ 3,839 $ 4,304 Tax positions related to the current year: Additions - 31 208 Tax positions related to the prior years: Reductions (165) (176) (61) Expirations of statutes of limitation 1 (49) (612) Balance as of December 31 $ 3,481 $ 3,645 $ 3,839 At December 31, 2018, the Company has classified $32 as a noncurrent liability and $3,449 as a reduction to non-current deferred income tax assets. The amount of unrecognized tax benefits is not expected to change significantly during the next 12 months. If the Company’s tax positions are sustained by the taxing authorities in favor of the Company, the amount that would affect the Company’s effective tax rate is approximately $3,481 and $3,645 at December 31, 2018 and 2017, respectively. The Company classifies interest expense and, if applicable, penalties which could be assessed related to unrecognized tax benefits as a component of income tax expense (benefit). For the years ended December 31, 2018, 2017 and 2016, the Company recognized approximately $(13), $(33) and $(59) of gross interest and penalties, respectively. The Company has accrued approximately $19 and $32 for the payment of interest and penalties at December 31, 2018 and 2017, respectively. The Company conducts business globally and, as a result, files income tax returns in the U.S. federal jurisdiction and various state and foreign jurisdictions. In the normal course of business, the Company is subject to examination by taxing authorities throughout the world. The following table summarizes the open tax years for each jurisdiction: Jurisdiction Open Tax Years U.S. Federal 2015-2018 Argentina 2013-2018 Brazil 2013-2018 China 2015-2018 France 2016-2018 Germany 2015-2018 Italy 2013-2018 Mexico 2013-2018 Netherlands 2015-2018 Spain 2014-2018 Sweden 2013-2018 United Kingdom 2017-2018 |
Operating Lease Commitments
Operating Lease Commitments | 12 Months Ended |
Dec. 31, 2018 | |
Operating Lease Commitments [Abstract] | |
Operating Lease Commitments | 7 . Operating Lease Commitments The Company leases equipment, vehicles and buildings from third parties under operating lease agreements. For the years ended December 31, 2018, 2017 and 2016, lease expense totaled $7,278, $6,261 , and $5,290, respectively. Future minimum operating lease commitments as of December 31, 2018 were as follows: Year ended December 31, 2019 $ 5,691 2020 4,131 2021 3,256 2022 2,444 2023 2,477 Thereafter 4,106 Total $ 22,105 |
Share-Based Compensation Plans
Share-Based Compensation Plans | 12 Months Ended |
Dec. 31, 2018 | |
Share-Based Compensation [Abstract] | |
Share-Based Compensation | 8. Share-Based Compensation Plans In April 2006, the Company’s shareholders approved the Amended and Restated Long-Term Incentive Plan (the “2006 Plan”) and reserved 1,500,000 Common Shares of which the maximum number of Common Shares which may be issued subject to incentive stock options is 500,000. In May 2010, shareholders approved an amendment to the 2006 Plan to increase the number of shares by 1,500,000 to 3,000,000, and in May 2013, shareholders approved another amendment to this plan to increase the number of shares by 1,500,000 to 4,500,000. As the 2006 Plan expired in May 2016, there were no shares available for grant at December 31, 2018 or 2017. As of December 31, 2018, there are 295,381 shares granted subject to future vesting of which 107,510 shares were time-based and 187,871 were performance-based. In May 2016, the Company’s shareholders approved the 2016 Long-Term Incentive Plan (the “2016 Plan”) and reserved 1,800,000 Common Shares (of which the maximum number of Common Shares which may be issued). Under the 2016 Plan, as of December 31, 2018, the Company has granted 789,995 share units, of which 316,970 were time-based with cliff vesting using the straight-line method and 473,025 were performance-based. There are 1,063,691 shares available to be granted under the 2016 Plan at December 31, 2018. In 2016, pursuant to the 2006 Plan and in 2017 and 2018, pursuant to the 2016 Plan, the Company granted time-based and performance-based share units. The time-based share units cliff vest three years after the date of grant. The performance based share units vest and are no longer subject to forfeiture upon the recipient remaining an employee of the Company for three years from the date of grant and, for a portion of the annual awards, upon the Company attaining certain targets of performance measured against a peer group’s three year performance in terms of total shareholder return and, for the remaining portion of the annual awards, upon achieving certain earnings per share targets established by the Company during the performance period of the award. The allocation of performance shares granted between total shareholder return and earnings per share were as follows for the years ended December 31: Total shareholder return 55 % 55 % 55 % Earnings per share 45 % 45 % 45 % In April 2005, the Company adopted the Directors’ Restricted Shares Plan (the “Director Share Plan”) and reserved 500,000 Common Shares for issuance under the Director Share Plan. In May 2013, shareholders approved an amendment to the Director Share Plan to increase the number of shares for issuance by 200,000 to 700,000. In May 2018, the Company’s shareholders approved an amendment to the Director Share Plan to increase the number of shares for issuance by 150,000 to 850,000. Under the Director Share Plan, the Company has cumulatively issued 646,052 restricted Common Shares. As such, there are 203,948 restricted Common Shares available to be issued at December 31, 2018. Shares issued annually under the Director Share Plan vest one year after the date of grant. Restricted Shares The fair value of the non-vested time-based restricted Common Share awards was calculated using the market value of the Common Shares on the date of issuance. The weighted-average grant-date fair value of time-based restricted Common Shares granted during the years ended December 31, 2018, 2017 and 2016 was $24.69, $18.73 and $13.52, respectively. The fair value of the non-vested performance-based restricted Common Share awards with a performance condition requiring the Company to obtain certain earnings per share targets was estimated using the market value of the shares on the date of grant. The fair value of non-vested performance-based restricted Common Share awards with a market condition requiring the Company to obtain a total shareholder return target relative to a group of peer companies was estimated using a Monte Carlo valuation model taking into consideration the probability of achievement using multiple simulations. The awards that use earnings per share as the performance target are expensed beginning when it is probable that the Company will meet the underlying performance condition. A summary of the status of the Company’s non-vested share units as of December 31, 2018 and the changes during the year then ended, are presented below: Performance-based Time-based awards awards Weighted- Weighted- Common average grant Common average grant Shares date fair value Shares date fair value Non-vested as of December 31, 2017 443,152 $ 15.01 744,188 $ 14.92 Granted 176,116 $ 24.69 215,490 $ 29.41 Vested (182,451) $ 13.21 (284,462) $ 11.19 Forfeited or cancelled (16,821) $ 19.99 (46,996) $ 17.13 Non-vested as of December 31, 2018 419,996 $ 19.64 628,220 $ 21.41 A summary of the status of the Company’s non-vested share units as of December 31, 2017 and the changes during the year then ended, are presented below: Time-based awards Weighted- Performance-based Common average grant Common average grant Shares date fair value Shares date fair value Non-vested as of December 31, 2016 612,037 $ 12.32 825,140 $ 12.14 Granted 177,664 $ 18.73 217,495 $ 21.54 Vested (310,207) $ 12.05 (165,783) $ 11.72 Forfeited or cancelled (36,342) $ 13.23 (132,664) $ 12.52 Non-vested as of December 31, 2017 443,152 $ 15.01 744,188 $ 14.92 As of December 31, 2018, total unrecognized compensation cost related to non-vested time-based share units granted was $3,321. That cost is expected to be recognized over a weighted-average period of 1.16 years. For the years ended December 31, 2018, 2017 and 2016, the total fair value of awards vested was $12,577, $8,718 and $5,394, respectively. As of December 31, 2018, total unrecognized compensation cost related to non-vested performance-based share units granted was $3,481 for shares probable to vest. That cost is expected to be recognized over a weighted-average period of 1.18 years dependent upon the achievement of performance conditions. As noted above, the Company has issued and outstanding performance-based restricted Common Share awards that use different performance targets (total shareholder return and earnings per share). The tax benefit realized for the tax deductions from the vesting of restricted Common Shares of the share-based payment arrangements was $1,584, $858 and $977 for the years ended December 31, 2018, 2017 and 2016. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2018 | |
Employee Benefit Plans [Abstract] | |
Employee Benefit Plans | 9. Employee Benefit Plans The Company has certain defined contribution profit sharing and 401(k) plans covering substantially all of its employees in the United States and Europe. The Company provides matching contributions to the Company’s 401(k) plan. Company contributions are generally discretionary. For the years ended December 31, 2018, 2017 and 2016, expenses related to these plans amounted to $3,520, $2,601 and $1,601, respectively. |
Financial Instruments and Fair
Financial Instruments and Fair Value Measurements | 12 Months Ended |
Dec. 31, 2018 | |
Financial Instruments and Fair Value Measurements [Abstract] | |
Financial Instruments and Fair Value Measurements | 10. 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. The fair value of debt approximates the carrying value of debt. Derivative Instruments and Hedging Activities On December 31, 2018, 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 2018, 2017 and 2016 include the euro and Mexican peso. In addition, the Company hedged the U.S. dollar against the Swedish krona and euro on behalf of its European subsidiaries in 2018 and 2016. 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 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 currency. 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 consolidated statements of operations as a component of other expense (income), net. The Company’s foreign currency forward contracts are designed to offset some of the gains and losses realized on the underlying foreign currency denominated transactions as follows: Euro-denominated Foreign Currency Forward Contracts At December 31, 2017, the Company held foreign currency forward contracts with an underlying notional amount of $1,486 to reduce the exposure related to the Company’s euro-denominated intercompany loans. There were no contracts entered into as of December 31, 2018 as these contracts were settled in December 2018. The euro-denominated foreign currency forward contract was not designated as a hedging instrument. For the years ended December 31, 2018, 2017 and 2016, the Company recognized a gain of $73 , a loss of $174 and a gain of $57, respectively, in the consolidated statements of operations as a component of other expense (income), net related to the euro-denominated contract. U.S. dollar-denominated Foreign Currency Forward Contracts – Cash Flow Hedge 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 which expired ratably on a monthly basis from February 2018 through December 2018. There were no contracts entered into as of December 31, 2018 or 2017. 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 which expired ratably on a monthly basis from February 2018 through December 2018. There were no contracts entered into as of December 31, 2018 or 2017. Mexican peso-denominated Foreign Currency Forward Contracts – Cash Flow Hedge The Company holds Mexican peso-denominated foreign currency contracts with notional amounts at December 31, 2018 of $9,017 which expire ratably on a monthly basis from January 2019 through December 2019, compared to $9,143 at December 31, 2017. The Company evaluated the effectiveness of the Mexican peso-denominated foreign currency forward contracts held as of December 31, 2018 and 2017, and the years then ended, and concluded that the hedges were effective. The notional amounts and fair values of derivative instruments in the consolidated balance sheets were as follows: Prepaid expenses Accrued expenses and Notional amounts (A) and other current assets other current liabilities December 31 Derivatives designated as hedging instruments: Cash flow hedges: Forward currency contracts $ 9,017 $ 9,143 $ 370 $ - $ - $ 221 Derivatives not designated as hedging instruments: Forward currency contracts $ - $ 1,486 $ - $ - $ - $ 48 (A) Notional amounts represent the gross contract / notional amount of the derivatives outstanding. Gross amounts recorded for the cash flow hedges in other comprehensive loss in shareholders’ equity and in net income for the years ended December 31 were as follows: Gains (loss) reclassified from Gain (loss) recorded in other other comprehensive income comprehensive income (loss) (loss) into net income (A) 2016 Derivatives designated as cash flow hedges: Forward currency contracts $ 1,967 $ 441 $ (582) $ 1,376 $ 634 $ (164) (A) Gains and losses reclassified from comprehensive loss into net income were recognized in COGS in the Company’s consolidated statements of operations. The net deferred gain of $370 on the cash flow hedge derivatives will be reclassified from other comprehensive income (loss) to the consolidated statements of operations in 2019. The Company has measured the ineffectiveness of the forward currency contracts and any amounts recognized in the consolidated financial statements were immaterial for the years ended December 31, 2018, 2017 and 2016. Fair Value Measurements The Company’s assets and liabilities 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. Fair values estimated using Level 1 inputs consist of quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. Fair values estimated using Level 2 inputs, other than quoted prices, 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 contracts, inputs include foreign currency exchange rates. Fair values estimated using Level 3 inputs consist of significant unobservable inputs. 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 inputs used. December 31, December 31, Fair values estimated using Level 1 Level 2 Level 3 Fair value inputs inputs inputs Fair value Financial assets carried at fair value: Forward currency contracts $ 370 $ - $ 370 $ - $ - Total financial assets carried at fair value $ 370 $ - $ 370 $ - $ - Financial liabilities carried at fair value: Forward currency contracts $ - $ - $ - $ - $ 269 Earn-out consideration 18,672 - - 18,672 20,746 Total financial liabilities carried at fair value $ 18,672 $ - $ - $ 18,672 $ 21,015 The following table sets forth a summary of the change in fair value of the Company’s Level 3 financial liabilities related to earn-out consideration that are measured at fair value on a recurring basis. Orlaco PST Total Balance at December 31, 2017 $ 8,637 $ 12,109 $ 20,746 Change in fair value 369 (156) 213 Foreign currency adjustments (404) (1,883) (2,287) Balance at December 31, 2018 $ 8,602 $ 10,070 $ 18,672 Orlaco PST Total Balance at December 31, 2016 $ - $ - $ - Fair value on acquisition date 3,243 10,180 13,423 Change in fair value 4,853 2,632 7,485 Foreign currency adjustments 541 (703) (162) Balance at December 31, 2017 $ 8,637 $ 12,109 $ 20,746 The earn-out considerations related to Orlaco and PST are recorded within other current liabilities and other long-term liabilities, respectively, in the consolidated balance sheet as of December 31, 2018. The earn-out considerations related to Orlaco and PST were recorded within other long-term liabilities in the consolidated balance sheet as of December 31, 2017. The change in fair value of the earn-out considerations are recorded within SG&A expense on the consolidated statements of operations for the years ended December 31, 2018 and 2017. The fair value for the Orlaco earn-out consideration is based on a Monte Carlo simulation utilizing forecasted earnings before interest, taxes, depreciation and amortization (“EBITDA”) for the 2017 and 2018 earn-out period as well as a growth rate reduced by the market required rate of return. The Company will be required to pay the PST earn-out consideration, which is not capped, based on PST’s financial performance in either 2020 or 2021. The fair value of the PST earn-out consideration is based on discounted cash flows utilizing forecasted EBITDA in 2020 and 2021 using the key inputs of forecasted sales and expected operating income reduced by the market required rate of return. The increase in fair value of earn-out consideration related to the Orlaco acquisition is primarily due to actual performance exceeding forecasted performance as well as the reduced time from the current period end to the payment date offset by foreign currency translation. The Orlaco earn-out consideration reached the capped amount of €7,500 as of the quarter ended March 31, 2018. The net decrease in fair value of earn-out consideration for PST was due to a reduction in forecasted performance and foreign currency translation partially offset by the reduced time from the current period end to the payment date. The foreign currency impact for the PST earn-out considerations is included in other expense (income), net in the consolidated statements of operations. There were no transfers in or out of Level 3 from other levels in the fair value hierarchy for the year ended December 31, 2018. Except for the fair value of assets acquired and liabilities assumed related to the Orlaco acquisition discussed in Note 2, no non-recurring fair value adjustments were required for nonfinancial assets for the years ended December 31, 2018 and 2017. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | 11. Commitments and Contingencies From time to time we are subject to various legal actions and claims incidental to our business, including those arising out of breach of contracts, product warranties, product liability, patent infringement, regulatory matters and employment-related matters. The Company establishes accruals for matters which it believes that losses are probable and can be reasonably estimated. 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 this 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. Upon approval of the remedial action plan by the Florida Department of Environmental Protection, ground water remediation began in the fourth quarter of 2015. During the years ended December 31, 2018, 2017 and 2016, environmental remediation costs incurred were immaterial. At December 31, 2018 and 2017, the Company had accrued an undiscounted liability of $111 and $265, respectively, related to future remediation costs. At December 31, 2018 and 2017, $111 and $253, respectively, were recorded as a component of accrued expenses and other current liabilities on the consolidated balance sheets while the remaining amount was recorded as a component of other long-term liabilities. Costs associated with the recorded liability will be incurred to complete the groundwater remediation, with the balance relating to monitoring costs to be incurred over multiple years. The recorded liability is based on assumptions in the remedial action plan. Although the Company sold the Sarasota facility in December 2011, the liability to remediate the site contamination remains the responsibility of the Company. Due to the ongoing site remediation, the Company is currently required to maintain a $1,489 letter of credit for the benefit of the buyer. The Company’s PST subsidiary has civil, labor and other non-income 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$29,700 ($7,600) and R$33,800 ($10,200) at December, 2018 and 2017, respectively. An unfavorable outcome on these contingencies could result in significant cost to the Company and adversely affect its results of operations. Insurance Recoveries The Company incurred losses and incremental costs related to the damage to assets caused by a storm at its Mexican production facility in the fourth quarter of 2016 and is pursuing recovery of such costs under applicable insurance policies. Anticipated proceeds from insurance recoveries related to losses and incremental costs that have been incurred (“loss recoveries”) are recognized when receipt is probable. Anticipated proceeds from insurance recoveries in excess of the net book value of damaged property, plant and equipment (“insurance gain contingencies”) are recognized when all contingencies related to the claim have been resolved. Loss recoveries related to the damage of inventory and incremental costs included in costs of sales were not significant for the year ended December 31, 2018 and there were no loss recoveries and insurance gain contingencies related to the damage of property, plant and equipment included within SG&A expense. In 2017, loss recoveries related to the damage of inventory and incremental costs included in cost of sales were $189 and loss recoveries and insurance gain contingencies related to the damage of property, plant and equipment included within SG&A expense were $1,923. As of December 31, 2017, the Company had confirmation of the open insurance claim and recorded a receivable of $1,644. The cash payment was subsequently received in January 2018. Cash proceeds related to the damage of inventory and incremental costs were $241 and $500 for the years ended December 31, 2018 and 2017, respectively, and are included in cash flows from operating activities. Cash proceeds related to the damage of property, plant and equipment of $1,403 and $711 for the years ended December 31, 2018 and 2017, respectively, are included in cash flows from investing activities. |
Headquarter Relocation and Cons
Headquarter Relocation and Consolidation | 12 Months Ended |
Dec. 31, 2018 | |
Business Realignment [Abstract] | |
Headquarter Relocation and Consolidation | 12. Headquarter Relocation and Consolidation During the fourth quarter of 2016, the Company relocated its corporate headquarters from Warren, Ohio to Novi, Michigan and consolidated its other corporate functions into one location. As a result, the Company incurred headquarter relocation costs recorded within SG&A expense, which included employee retention, relocation, severance, recruiting, duplicate wages and professional fees, of $269, $493 and $1,769 for the years ended December 31, 2018, 2017, and 2016, respectively. In connection with the headquarter relocation, the Company was approved for a Michigan Business Development Program grant of up to $1,400 based upon the number of new jobs created in Michigan through 2022. As a result of the attainment of the first and second milestones, grant income of $312 and $338 was recognized during the years ended December 31, 2018 and 2017, respectively, within SG&A expense in the consolidated statements of operations. |
Restructuring and Business Real
Restructuring and Business Realignment | 12 Months Ended |
Dec. 31, 2018 | |
Business Realignment [Abstract] | |
Restructuring and Business Realignment | 13. Restructuring and Business Realignment In the fourth quarter of 2018, we undertook restructuring actions for our Electronics segment affecting our European Aftermarket business and China operations. We recognized expense of $3,539 for the year ended December 31, 2018 as a result of these actions for severance, contract termination costs, excess and obsolete inventory write-offs and the non-cash write-off of intangible assets and of impaired fixed assets. Excess and obsolete inventory write-offs of $823 were recognized in COGS for the year ended December 31, 2018 and all other restructuring costs were recognized in SG&A in the consolidated statement of operations. The Company expects to incur approximately $1,080 of additional restructuring costs related to the actions initiated as of December 31, 2018. The expenses for the 2018 restructuring activities that relate to the Electronics reportable segment include the following: Accrual as of 2018 Charge Utilization Accrual as of January 1, 2018 to Expense Cash Non-Cash December 31, 2018 Employee termination benefits $ - $ 1,939 $ (1,419) $ - $ 520 Excess and obsolete inventory - 823 - (823) - Intangible impairment - 200 - (200) - Fixed asset impairment - 157 - (157) - Contract termination costs - 156 (139) - 17 Other related costs - 264 (145) - 119 Total $ - $ 3,539 $ (1,703) $ (1,180) $ 656 In addition to the specific restructuring activities, the Company regularly evaluates the performance of its businesses and cost structures, including personnel, and makes necessary changes thereto in order to optimize its results. The Company also evaluates the required skill sets of its personnel and periodically makes strategic changes. As a consequence of these actions, the Company incurs severance related costs which are referred to as business realignment charges. Business realignment charges by reportable segment were as follows: Year ended December 31 Control Devices (A) $ 169 $ - $ - Electronics (B) 63 1,223 1,180 PST (C) 478 589 1,437 Total business realignment charges $ 710 $ 1,812 $ 2,617 (A) Business realignment severance costs for the year ended December 31, 2018 related to D&D were $128. Business realignment severance costs for the year ended December 31, 2017 related to SG&A were $41. (B) Business realignment severance costs for the year ended December 31, 2018 related to SG&A were $63. Business realignment severance costs for the year ended December 31, 2017 related to COGS and SG&A were $56 and $1,167, respectively. Business realignment severance costs for the year ended December 31, 2016 related to SG&A and D&D were $196 and $984, respectively. (C) Business realignment severance costs for the year ended December 31, 2018 related to COGS, SG&A and D&D were $63, $386 and $29, respectively. Business realignment severance costs for the year ended December 31, 2017 related to COGS, SG&A and D&D were $370, $218 and $1, respectively. Business realignment severance costs for the year ended December 31, 2016 related to COGS, SG&A and D&D were $437, $884 and $116, respectively. There were no significant restructuring or business realignment expenses related to the unallocated corporate segment during the years ended December 31, 2018, 2017 or 2016. Business realignment charges classified by statement of operations line item were as follows: Year ended December 31 2016 Cost of goods sold $ 63 $ 426 $ 437 Selling, general and administrative 491 1,385 1,080 Design and development 156 1 1,100 Total business realignment charges $ 710 $ 1,812 $ 2,617 |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Segment Reporting | 14. 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. 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, driver information systems and camera-based vision systems, monitors and related products. 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. The Company’s management evaluates the performance of its reportable segments based primarily on revenues from external customers, capital expenditures and operating income. Inter-segment sales are accounted for on terms similar to those to third parties and are eliminated upon consolidation. The financial information presented below is for our three reportable operating segments and includes adjustments for unallocated corporate costs and intercompany eliminations, where applicable. Such costs and eliminations do not meet the requirements for being classified as an operating segment. Corporate costs include various support functions, such as corporate accounting/finance, executive administration, human resources, information technology and legal. A summary of financial information by reportable segment is as follows: Year ended December 31 Net Sales: Control Devices $ 441,297 $ 447,528 $ 408,132 Inter-segment sales 8,348 5,044 1,826 Control Devices net sales 449,645 452,572 409,958 Electronics (D) 344,727 282,383 205,256 Inter-segment sales 37,126 39,501 33,361 Electronics net sales 381,853 321,884 238,617 PST 80,175 94,533 82,589 Inter-segment sales 2 563 - PST net sales 80,177 95,096 82,589 Eliminations (45,476) (45,108) (35,187) Total net sales $ 866,199 $ 824,444 $ 695,977 Operating Income (Loss): Control Devices $ 64,191 $ 72,555 $ 61,815 Electronics (D) 28,236 18,119 14,798 PST 4,989 2,661 (3,462) Unallocated Corporate (A) (30,412) (35,965) (29,069) Total operating income $ 67,004 $ 57,370 $ 44,082 Depreciation and Amortization: Control Devices $ 11,914 $ 10,887 $ 10,276 Electronics (D) 8,982 8,143 3,971 PST 7,443 8,316 8,559 Unallocated Corporate 852 584 452 Total depreciation and amortization (B) $ 29,191 $ 27,930 $ 23,258 Interest Expense, net: Control Devices $ 76 $ 103 $ 226 Electronics 85 119 142 PST 824 1,812 3,396 Unallocated Corporate 3,735 3,749 2,513 Total interest expense, net $ 4,720 $ 5,783 $ 6,277 Capital Expenditures: Control Devices $ 16,737 $ 17,484 $ 13,261 Electronics (D) 5,965 8,158 5,665 PST 3,242 3,831 3,213 Unallocated Corporate (C) 3,083 2,697 2,337 Total capital expenditures $ 29,027 $ 32,170 $ 24,476 December 31, December 31, Total Assets: Control Devices $ 175,708 $ 164,632 Electronics (D) 265,838 252,324 PST 81,002 100,382 Corporate (C) 359,837 377,657 Eliminations (322,866) (335,958) Total assets $ 559,519 $ 559,037 The following table presents net sales and long-term assets for the geographic areas in which the Company operates: Year ended December 31 Net Sales: North America $ 480,511 $ 471,770 $ 428,046 South America 80,175 94,533 82,589 Europe and Other (D) 305,513 258,141 185,342 Total net sales $ 866,199 $ 824,444 $ 695,977 December 31, December 31, Long-term Assets: North America $ 86,763 $ 89,997 South America 45,408 58,989 Europe and Other (D) 107,171 106,682 Total long-term assets $ 239,342 $ 255,668 (A) Unallocated Corporate expenses include, among other items, accounting/finance, human resources, information technology and legal 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, fixed assets for the headquarter building, information technology assets, equity investments and investments in subsidiaries. (D) The amounts for 2018 and 2017 include the Orlaco business which was acquired on January 31, 2017 as disclosed in Note 2. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | 15. Subsequent Events On January 10, 2019, the Company committed to a restructuring plan that will result in the closure of our Canton, Massachusetts facility (“Canton Facility”) by the end of 2019 and the consolidation of manufacturing operations at that site into other Company locations (“Canton Restructuring”). Company management informed employees at the Canton Facility of this restructuring decision on January 11, 2019. This restructuring action will result in the closure of the Canton facility and the termination of the employment of Canton Facility employees. The estimated costs for the Canton Restructuring include employee severance and termination costs, contract terminations costs, professional fees, the non-cash write-off of impaired fixed assets and transition costs. The estimated total cost of the Canton Facility restructuring plan, that will impact the Control Devices segment, is between $8,500 and $9,500 and will be incurred through 2020. |
Unaudited Quarterly Financial D
Unaudited Quarterly Financial Data | 12 Months Ended |
Dec. 31, 2018 | |
Unaudited Quarterly Financial Data [Abstract] | |
Unaudited Quarterly Financial Data | 16. Unaudited Quarterly Financial Data The following is a summary of quarterly results of operations: Quarter ended 2018 December 31 September 30 June 30 March 31 Net sales $ 210,814 $ 208,853 $ 220,602 $ 225,930 Gross profit 57,959 63,285 67,418 67,969 Operating income 12,664 18,312 19,181 16,847 Income tax expense 690 3,467 3,820 3,233 Net income 12,056 13,292 15,120 13,380 Earnings per share attributable to Stoneridge, Inc.: Basic (A) $ 0.42 $ 0.47 $ 0.53 $ 0.47 Diluted (A) $ 0.42 $ 0.46 $ 0.52 $ 0.46 Quarter ended 2017 December 31 September 30 June 30 March 31 Net sales $ 207,440 $ 203,582 $ 209,111 $ 204,311 Gross profit 61,026 62,549 63,414 61,151 Operating income 13,234 13,296 15,676 15,164 Income tax (benefit) expense (B) (6,036) 3,809 5,189 4,571 Net income 18,908 8,049 8,919 9,173 Net loss attributable to noncontrolling interests - - (100) (30) Net income attributable to Stoneridge, Inc. 18,908 8,049 9,019 9,203 Earnings per share attributable to Stoneridge, Inc.: Basic (A) $ 0.67 $ 0.29 $ 0.32 $ 0.33 Diluted (A) $ 0.65 $ 0.28 $ 0.32 $ 0.32 (A) Earnings per share for the year may not equal the sum of the four historical quarters earnings per share due to changes in weighted-average basic and diluted shares outstanding. (B) The impact of the Tax Legislation was an increase in tax expense of $6,200 due to the one-time deemed repatriation tax, offset by the favorable impacts of the reduced tax rate on the Company’s net deferred tax liabilities and other deferred tax adjustments of $(15,300) million related to certain earnings included in the one-time transition tax. |
SCHEDULE II - VALUATION AND QUA
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Dec. 31, 2018 | |
Valuation and Qualifying Accounts [Abstract] | |
Valuation and Qualifying Accounts | SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS (in thousands) The following schedules provide the activity for accounts receivable reserves and valuation allowance for deferred tax assets for the years ended December 31, 2018, 2017 and 2016: Balance at Charged to costs and expenses Write-offs Balance at end Accounts receivable reserves: Year ended December 31, 2018 $ 1,109 $ 1,244 $ (1,110) $ 1,243 Year ended December 31, 2017 1,630 2,173 (2,694) 1,109 Year ended December 31, 2016 1,066 1,604 (1,040) 1,630 Balance at Net additions charged to Exchange rate fluctuations beginning of expense and other Balance at end period (benefit) (A) items of period Valuation allowance for deferred tax assets: Year ended December 31, 2018 $ 11,986 $ (1,922) $ (1,102) $ 8,962 Year ended December 31, 2017 11,125 874 (13) 11,986 Year ended December 31, 2016 59,391 (47,659) (607) 11,125 (A) The Company recorded the release of a valuation allowance associated with its U.S. federal, certain state and foreign deferred tax assets of $49,600 during the year ended December 31, 2016. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Summary of Significant Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements include the accounts of Stoneridge, Inc. and its wholly-owned and majority-owned subsidiaries (collectively, the “Company”). Intercompany transactions and balances have been eliminated in consolidation. The Company analyzes its ownership interests in accordance with Accounting Standards Codification (“ASC”) “Consolidations (Topic 810)” to determine whether they are a variable interest entity and, if so, whether the Company is the primary beneficiary. On January 31, 2017, the Company acquired Exploitatiemaatschappij Berghaaf B.V. (“Orlaco”), an electronics business which designs, manufactures and sells camera-based vision systems, monitors and related products. The acquisition was accounted for as a business combination, and accordingly, the Company’s consolidated financial statements herein include the results of Orlaco from the date of acquisition. See Acquisitions in Note 2 below to the consolidated financial statements for additional details regarding the Orlaco acquisition. The Company had a 74% controlling interest in PST Eletrônica Ltda. (“ PST”) from December 31, 2011 through May 15, 2017. On May 16, 2017, the Company acquired the remaining 26% noncontrolling interest in PST, which was accounted for as an equity transaction. As such, PST is now a wholly owned subsidiary. See Note 4 to the consolidated financial statements for additional details regarding the acquisition of PST’s noncontrolling interest. The Company’s investment in Minda Stoneridge Instruments Ltd. (“MSIL”) for the years ended December 31, 2018, 2017 and 2016 has been determined to be an unconsolidated entity, and therefore is accounted for under the equity method of accounting based on the Company’s 49% ownership in MSIL. |
Accounting Estimates | Accounting Estimates The preparation of financial statements in conformity with U.S. Generally Accepted Accounting Principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, including certain self-insured risks and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Because actual results could differ from those estimates, the Company revises its estimates and assumptions as new information becomes available. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company’s cash and cash equivalents include actively traded money market funds with short-term investments in marketable securities, primarily U.S. government securities. Cash and cash equivalents are stated at cost, which approximates fair value, due to the highly liquid nature and short-term duration of the underlying securities with original maturities of 90 days or less. |
Accounts Receivable and Concentration Of Credit Risk | Accounts Receivable and Concentration of Credit Risk Revenues are principally generated from the automotive, commercial, off-highway, motorcycle and agricultural vehicle markets. The Company’s largest customers are Ford Motor Company and Volvo, primarily related to the Control Devices and Electronics reportable segments and accounted for the following percentages of consolidated net sales for the years ended December 31, 2018, 2017 and 2016: Ford Motor Company 12 % 14 % 17 % Volvo 8 % 6 % 6 % Accounts receivable are recorded at the invoice price, net of an estimate of allowance for doubtful accounts and other reserves. |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts The Company evaluates the collectability of accounts receivable based on a combination of factors. In circumstances where the Company is aware of a specific customer’s inability to meet its financial obligations, a specific allowance for doubtful accounts is recorded against amounts due to reduce the net recognized receivable to the amount the Company reasonably believes will be collected. Additionally, the Company reviews historical trends for collectability in determining an estimate for its allowance for doubtful accounts. If economic circumstances change substantially, estimates of the recoverability of amounts due to the Company could be reduced by a material amount. The Company does not have collateral requirements with its customers. |
Sales of Accounts Receivable | Sales of Accounts Receivable In prior years, the Company’s PST segment sold selected accounts receivable on a full recourse basis to an unrelated financial institution in Brazil. PST accounts for these transactions as sales of accounts receivable. As such, in accordance with ASC 860, “Transfers and Servicing”, the sales of accounts receivable are reflected as a reduction of accounts receivable in the consolidated balance sheets and the loss on sale is recorded within interest expense, net in the consolidated statements of operations while the proceeds received from the sale are included in the cash flows from operating activities in the consolidated statements of cash flows. During 2017, PST sold $2,520 (7,983 Brazilian real (“R$”)) of accounts receivable at a loss of $86 (R$273), which represents the implicit interest on the transaction, and received proceeds of $2,434 (R$7,710). PST did not have any remaining credit exposure at December 31, 2017 related to the receivables sold. During 2018, PST did not sell any of its accounts receivable. |
Inventories | Inventories Inventories are valued at the lower of cost (using either the first-in, first-out (“FIFO”) or average cost methods) or net realizable value. 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 consist of the following: December 31, Raw materials $ 54,382 $ 47,588 Work-in-progress 4,710 5,806 Finished goods 20,186 20,077 Total inventories, net $ 79,278 $ 73,471 Inventory valued using the FIFO method was $64,745 and $54,837 at December 31, 2018 and 2017, respectively. Inventory valued using the average cost method was $14,533 and $18,634 at December 31, 2018 and 2017, respectively. |
Pre-Production Costs Related to Long-Term Supply Arrangements | Pre-production Costs Related to Long-term Supply Arrangements Engineering, research and development and other design and development costs for products sold on long-term supply arrangements are expensed as incurred unless the Company has a contractual guarantee for reimbursement from the customer which are capitalized as pre-production costs. Costs for molds, dies and other tools used to make products sold on long-term supply arrangements for which the Company either has title to the assets or has the noncancelable right to use the assets during the term of the supply arrangement are capitalized in property, plant and equipment and amortized to cost of sales over the shorter of the term of the arrangement or over the estimated useful lives of the assets, typically three to five years. Costs for molds, dies and other tools used to make products sold on long-term supply arrangements for which the Company has a contractual guarantee to a lump sum reimbursement from the customer are capitalized either as a component of prepaid expenses and other current assets or an investment and other long term assets, net within the consolidated balance sheets. Capitalized pre-production costs were $6,875 and $9,260 at December 31, 2018 and 2017, respectively. At December 31, 2018 and 2017, $6,875 and $8,894 were recorded as a component of prepaid expenses and other current assets on the consolidated balance sheets while the remaining amounts were recorded as a component of investments and other long term assets, net. |
Acquisitions | Acquisitions Orlaco On January 31, 2017, Stoneridge B.V., an indirect wholly-owned subsidiary of Stoneridge, Inc., acquired Orlaco. Orlaco designs, manufactures and sells camera-based vision systems, monitors and related products primarily to the heavy off-road machinery, commercial vehicle, lifting crane and warehousing and logistics industries. Stoneridge and Orlaco jointly developed the MirrorEye camera monitor system, which is a system solution to improve the safety and fuel economy for commercial vehicles. The MirrorEye camera monitor system integrates Orlaco’s vision processing technology and Stoneridge’s driver information capabilities as well as the combined software capabilities of both businesses. The acquisition of Orlaco enhances the Stoneridge’s Electronics segment global technical capabilities in vision systems and facilitates entry into new markets. The aggregate consideration for the Orlaco acquisition was €74,939 ($79,675), which included customary estimated adjustments to the purchase price. The Company paid €67,439 ($71,701) in cash. The purchase price was subject to certain customary adjustments set forth in the purchase agreement. The Company is required to pay an additional amount up to €7,500 as contingent consideration (“earn-out consideration”) if certain performance targets are achieved during the first two years. See Note 9 for additional details on the Orlaco contingent consideration. The acquisition date fair value of the total consideration transferred consisted of the following: Cash $ 79,675 Fair value of earn-out consideration and other adjustments 4,208 Total purchase price $ 83,883 The following table summarizes the final fair value of the assets acquired and liabilities assumed at the acquisition date (including measurement period adjustments): At January 31, 2017 Cash $ 2,165 Accounts receivable 7,929 Inventory 9,409 Prepaid and other current assets 298 Property, plant and equipment 6,668 Identifiable intangible assets 38,739 Other long-term assets 6 Total identifiable assets acquired 65,214 Accounts payable 3,020 Other current liabilities 834 Deferred tax liabilities 10,206 Warranty liability 899 Total liabilities assumed 14,959 Net identifiable assets acquired 50,255 Goodwill 33,628 Net assets acquired $ 83,883 Assets acquired and liabilities assumed were recorded at estimated fair values based on management’s estimates, available information, and reasonable and supportable assumptions. Also, the Company utilized a third-party to assist with certain estimates of fair values, including: · Fair value estimate for inventory was based on a comparative sales method · Fair value estimate for property, plant and equipment was based on appraised values utilizing cost and market approaches · Fair values for intangible assets were based on a combination of market and income approaches, including the relief from royalty method · Fair value for the earn-out consideration was based on a Monte Carlo simulation analysis utilizing forecasted earnings before interest, taxes, depreciation and amortization (“EBITDA”) for the 2017 and 2018 earn-out period as well as a growth rate reduced by the market required rate of return These fair value measurements are classified within Level 3 of the fair value hierarchy. See Note 10 for details on fair value hierarchy. Goodwill is calculated as the excess of the fair value of consideration transferred over the fair market value of the acquired identifiable assets and assumed liabilities and represents the future economic benefits arising from other assets acquired that could not be separately recognized. The goodwill is not deductible for income tax purposes. Of the $38,739 of acquired identifiable intangible assets, $27,518 was assigned to customer lists with a 15-year useful life; $5,142 was assigned to trademarks with a 20-year useful life; and $6,079 was assigned to technology with a 7-year weighted-average useful life. The Company recognized $1,259 of acquisition related costs in the consolidated statement of operations as a component of selling, general and administrative (“SG&A”) expense for the year ended December 31, 2017. There were no acquisition related costs for the year ended December 31, 2018. The Company’s statement of operations included $1,636 of expense in cost of goods sold (“COGS”) for the year ended December 31, 2017 associated with the step-up of the Orlaco inventory to fair value. The Company’s statement of operations included $369 and $4,853 of expense for the fair value adjustment for earn-out consideration in SG&A expenses for the year ended December 31, 2018 and 2017, respectively. The following unaudited pro forma information reflects the Company’s consolidated results of operations as if the acquisition had taken place on January 1, 2016. The unaudited pro forma information is not necessarily indicative of the results of operations that the Company would have reported had the transaction actually occurred at the beginning of these periods, nor is it necessarily indicative of future results. Year ended December 31 Net sales $ 829,474 $ 752,864 Net income attributable to Stoneridge, Inc. and subsidiaries $ 45,283 $ 8,218 |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment are recorded at cost and consist of the following: December 31, Land and land improvements $ 4,619 $ 4,863 Buildings and improvements 37,234 37,581 Machinery and equipment 212,225 192,107 Office furniture and fixtures 9,929 10,070 Tooling 75,620 75,038 Information technology 27,179 27,466 Vehicles 872 881 Leasehold improvements 2,799 2,841 Construction in progress 23,064 24,312 Total property, plant, and equipment 393,541 375,159 Less: accumulated depreciation (281,328) (264,757) Property, plant and equipment, net $ 112,213 $ 110,402 Depreciation is provided using the straight-line method over the estimated useful lives of the assets. Depreciation expense for the years ended December 31, 2018, 2017 and 2016 was $22,786, $21,490 and $19,998, respectively. Depreciable lives within each property classification are as follows: Buildings and improvements 10-40 years Machinery and equipment 3-10 years Office furniture and fixtures 3-10 years Tooling 2-5 years Information technology 3-7 years Vehicles 3-5 years Leasehold improvements shorter of lease term or 3-10 years Maintenance and repair expenditures that are not considered improvements and do not extend the useful life of the property, plant and equipment are charged to expense as incurred. Expenditures for improvements and major renewals are capitalized. When assets are retired or otherwise disposed of, the related cost and accumulated depreciation are removed from the accounts, and any gain or loss on the disposition is recorded in the consolidated statements of operations as a component of SG&A expenses. |
Impairment of Long-Lived or Finite-Lived Assets | Impairment of Long-Lived or Finite-Lived Assets The Company reviews the carrying value of its long-lived assets and finite-lived intangible assets for impairment when events or circumstances indicate that their carrying value may not be recoverable. Factors the Company considers important that could trigger testing of the related asset groups for an impairment include current period operating or cash flow losses combined with a history of operating or cash flow losses, a projection or forecast that demonstrates continuing losses, significant adverse changes in the business climate within a particular business or current expectations that a long-lived asset will be sold or otherwise disposed of significantly before the end of its estimated useful life. To test for impairment, the estimated undiscounted cash flows expected to be generated from the use and disposal of the asset or asset group is compared to its carrying value. An asset group is established by identifying the lowest level of cash flows generated by the group of assets that are largely independent of cash flows of other assets. If cash flows cannot be separately and independently identified for a single asset, we will determine whether an impairment has occurred for the group of assets for which we can identify projected cash flows. If these undiscounted cash flows are less than their respective carrying values, an impairment charge would be recognized to the extent that the carrying values exceed estimated fair values. The estimation of undiscounted cash flows and fair value requires us to make assumptions regarding future operating results over the life of the asset or the life of the primary asset in the asset group. The results of the impairment testing are dependent on these estimates which require judgment. The occurrence of certain events, including changes in economic and competitive conditions, could impact cash flows eventually realized and management’s ability to accurately assess whether an asset is impaired. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill The total purchase price associated with acquisitions is allocated to the acquisition date fair values of identifiable assets acquired and liabilities assumed with the excess purchase price assigned to goodwill. Goodwill was $36,717 and $38,419 at December 31, 2018 and 2017, respectively, all of which relates to the Electronics segment. Goodwill is not amortized, but instead is tested for impairment at least annually, or earlier when events and circumstances indicate that it is more likely than not that such assets have been impaired, by applying a fair value-based test. In conducting our annual impairment assessment testing, we first perform a qualitative assessment of whether it is more likely than not that a reporting unit’s fair value is less than its carrying amount. If not, no further goodwill impairment testing is performed. If it is more likely than not that a reporting unit’s fair value is less than its carrying amount, or if we elect not to perform a qualitative assessment of a reporting unit, we then compare the fair value of the reporting unit to the related net book value. If the net book value of a reporting unit exceeds its fair value, an impairment loss is measured and recognized. The Company utilizes an income statement approach to estimate the fair value of a reporting unit and a market valuation approach to further support this analysis. The income approach is based on projected debt-free cash flow which is discounted to the present value using discount factors that consider the timing and risk of cash flows. We believe that this approach is appropriate because it provides a fair value estimate based on the reporting unit’s expected long-term operating cash flow performance. This approach also mitigates the impact of cyclical trends that occur in the industry. Fair value is estimated using internally developed forecasts, as well as commercial and discount rate assumptions. The discount rate used is the value-weighted average of our estimated cost of equity and of debt (“cost of capital”) derived using both known and estimated customary market metrics. Our weighted average cost of capital is adjusted to reflect a risk factor, if necessary. Other significant assumptions include terminal value growth rates, terminal value margin rates, future capital expenditures and changes in future working capital requirements. While there are inherent uncertainties related to the assumptions used and to management’s application of these assumptions to this analysis, we believe that the income statement approach provides a reasonable estimate of the fair value of a reporting unit. The market valuation approach is used to further support our analysis. There was no impairment of goodwill for the years ended December 31, 2018, 2017 or 2016. Goodwill and changes in the carrying amount of goodwill by segment for the years ended December 31, 2018 and 2017 were as follows: Electronics Balance at January 1, 2018 $ 38,419 Currency translation (1,702) Balance at December 31, 2018 $ 36,717 Electronics Balance at January 1, 2017 $ 931 Acquisition of business 33,628 Currency translation 3,860 Balance at December 31, 2017 $ 38,419 The Company’s cumulative goodwill impairment loss since inception was $300,083 at December 31, 2018 and 2017, which includes PST’s goodwill impairment in 2014 and goodwill impairment recorded by the Company’s Control Devices segment in 2008 and 2004. Other Intangible Assets Other intangible assets, net at December 31, 2018 and 2017 consisted of the following: Acquisition Accumulated As of December 31, 2018 cost amortization Net Customer lists $ 52,200 $ (14,549) $ 37,651 Tradenames 20,689 (5,884) 14,805 Technology 15,581 (6,005) 9,576 Total $ 88,470 $ (26,438) $ 62,032 Acquisition Accumulated As of December 31, 2017 cost amortization Net Customer lists $ 57,672 $ (12,695) $ 44,977 Tradenames 23,546 (5,646) 17,900 Technology 17,443 (5,077) 12,366 Other 41 (41) - Total $ 98,702 $ (23,459) $ 75,243 Other intangible assets, net at December 31, 2018 for customer lists, tradenames, and technology include $25,501, $4,939 and $4,566, respectively, related to the Electronics segment and customer lists, tradenames and technology of $12,150, $9,866 and $5,010, respectively, related to the PST segment. The Company recognized $6,406, $6,440 and $3,259 of amortization expense related to intangible assets in 2018, 2017 and 2016, respectively. Amortization expense is included as a component of SG&A on the consolidated statements of operations. Annual amortization expense for intangible assets is estimated to be approximately $6,205 for the years 2019 through 2023. The weighted-average remaining amortization period is approximately 12 years. For the year ended December 31, 2018 the Company recognized $202 of intangible impairment charge related to the Electronics segment customer lists as a result of the European Aftermarket restructuring as noted in Note 13. There were no intangible impairment charges for the year ended December 31, 2017. |
Accrued Expenses and Other Current Liabilities | Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consist of the following: As of December 31 Compensation related liabilities $ 18,717 $ 22,429 Contingent consideration (A) 8,602 - Product warranty and recall obligations 7,211 6,867 Accrued income taxes 1,507 6,897 Other (B) 21,843 16,353 Total accrued expenses and other current liabilities $ 57,880 $ 52,546 (A) Accrued contingent consideration includes the Orlaco contingent consideration, as referenced in Note 2 and Note 10, and is included in accrued expenses and other current liabilities for the year ended December 31, 2018 and was included in other long-term liabilities for the year ended December 31, 2017. (B) “Other” is comprised of miscellaneous accruals, none of which individually contributed a significant portion of the total. |
Income Taxes | Income Taxes The Company accounts for income taxes using the liability method. Deferred income taxes reflect the tax consequences on future years of differences between the tax basis of assets and liabilities and their financial reporting amounts. Future tax benefits are recognized to the extent that realization of such benefits is more likely than not to occur. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in the period that includes the enactment date. Deferred tax assets are recognized to the extent that these assets are more likely than not to be realized (See Note 6). In making such a determination, the Company considers all available positive and negative evidence, including future release of existing taxable temporary differences, projected future taxable income, tax planning strategies, and results of recent operations. Release of some or all of a valuation allowance would result in the recognition of certain deferred tax assets and a decrease to income tax expense for the period the release is recorded. The Company’s policy is to provide for uncertain tax positions and the related interest and penalties based upon management’s assessment of whether a tax benefit is more likely than not to be sustained upon examination by tax authorities. To the extent the Company prevails in matters for which a liability for an unrecognized tax benefit is established or is required to pay amounts in excess of the liability, the Company’s effective tax rate in a given financial statement period may be affected. The Tax Legislation created a provision known as Global Intangible Low-Taxed Income (“GILTI”) that imposes a tax on certain earnings of foreign subsidiaries. The Company has made an accounting policy election to reflect GILTI taxes, if any, as a current income tax expense in the period incurred. |
Currency Translation | Currency Translation The financial statements of foreign subsidiaries, where the local currency is the functional currency, are translated into U.S. dollars using exchange rates in effect at the period end for assets and liabilities and average exchange rates during each reporting period for the results of operations. Adjustments resulting from translation of financial statements are reflected as a component of accumulated other comprehensive loss in the Company’s consolidated balance sheets. Foreign currency transactions are remeasured into the functional currency using translation rates in effect at the time of the transaction with the resulting adjustments included on the consolidated statements of operations within other expense, net. These foreign currency transaction losses (gains), including the impact of hedging activities, were $(487), $500 and $(268) for the years ended December 31, 2018, 2017 and 2016, respectively. |
Revenue Recognition and Sales Commitments | Revenue Recognition and Sales Commitments The Company recognizes revenue when obligations under the terms of a contract with our customer are satisfied; generally this occurs with the transfer of control of our products and services, which is usually when the parts are shipped or delivered to the customer’s premises. The Company recognizes monitoring service revenues over time, as the services are provided to customers. Revenue is measured as the amount of consideration we expect to receive in exchange for transferring goods or providing services. The transaction price will include estimates of variable consideration to the extent it is probable that a significant reversal of revenue recognized will not occur. Incidental items that are not significant in the context of the contract are recognized as expense. The Company collects certain taxes and fees on behalf of government agencies and remits such collections on a periodic basis. The taxes are collected from customers but are not included in net sales. Estimated returns are based on historical authorized returns. The Company often enters into agreements with its customers at the beginning of a given vehicle’s expected production life. Once such agreements are entered into, it is the Company’s obligation to fulfill the customers’ purchasing requirements for the entire production life of the vehicle. These agreements are subject to potential renegotiation from time to time, which may affect product pricing. See Note 3 for additional disclosure. |
Shipping and Handling Costs | Shipping and Handling Costs Shipping and handling costs are included in COGS on the consolidated statements of operations. |
Product Warranty and Recall Reserves | Product Warranty and Recall Reserves 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 the product warranty and recall reserve is included as a component of accrued expenses and other current liabilities on the consolidated balance sheets. Product warranty and recall includes $3,283 and $3,112 of a long-term liability at December 31, 2018 and 2017, respectively, which is included as a component of other long-term liabilities on the consolidated balance sheets. The following provides a reconciliation of changes in the product warranty and recall reserve: Year ended December 31, Product warranty and recall at beginning of period $ 9,979 $ 9,344 Accruals for warranties established during period 6,217 4,933 Assumed warranty liability related to Orlaco - 899 Aggregate changes in pre-existing liabilities due to claim developments 646 4,899 Settlements made during the period (5,831) (10,407) Foreign currency translation (517) 311 Product warranty and recall at end of period $ 10,494 $ 9,979 |
Design and Development Costs | Design and Development Costs Expenses associated with the development of new products, and changes to existing products are charged to expense as incurred, and are included in the Company’s consolidated statements of operations as a separate component of costs and expenses. These product development costs amounted to $51,074, $48,877 and $40,212 for the years ended December 31, 2018, 2017 and 2016, respectively, or 5.9%, 5.9% and 5.8% of net sales for these respective periods. |
Research and Development Activities | Research and Development Activities The Company enters into research and development contracts with certain customers, which generally provide for reimbursement of costs. The Company incurred and was reimbursed for contracted research and development costs of $16,540, $14,946 and $12,764 for the years ended December 31, 2018, 2017 and 2016, respectively. |
Share-Based Compensation | Share-Based Compensation At December 31, 2018, the Company had two types of share-based compensation plans: (1) Long-Term Incentive Plan for employees and (2) the Amended Directors’ Restricted Shares Plan, for non-employee directors. The Long-Term Incentive Plan is made up of the Long-Term Incentive Plan which expired on June 30, 2007, the Amended and Restated Long-Term Incentive Plan, as amended, which expired on April 24, 2016 and the 2016 Long-Term Incentive Plan that was approved by shareholders on May 10, 2016, and expires on May 10, 2026. Total compensation expense recognized as a component of SG&A expense on the consolidated statements of operations for share-based compensation arrangements was $5,632, including the forfeiture of certain grants associated with employee resignations, $7,265, related to higher attainment of performance-based awards and accelerated expense associated with the retirement of eligible employees, and $6,134, including $545 from the accelerated vesting in connection with the retirement of the Company’s former President and Chief Executive Officer, for the years ended December 31, 2018, 2017 and 2016, respectively. There was no share-based compensation expense capitalized in inventory during 2018, 2017 or 2016. |
Financial Instruments and Derivative Financial Instruments | Financial Instruments and Derivative Financial Instruments Financial instruments, including derivative financial instruments, held by the Company include cash and cash equivalents, accounts receivable, accounts payable, long-term debt and foreign currency forward contracts. The carrying value of cash and cash equivalents, accounts receivable and accounts payable is considered to be representative of fair value because of the short maturity of these instruments. See Note 10 for fair value disclosures of the Company’s financial instruments. |
Common Shares Held in Treasury | Common Shares Held in Treasury The Company accounts for Common Shares held in treasury under the cost method (applied on a FIFO basis) and includes such shares as a reduction of total shareholders’ equity. |
Earnings Per Share | Earnings Per Share Basic earnings per share was computed by dividing net income attributable to Stoneridge Inc. by the weighted-average number of Common Shares outstanding for each respective period. Diluted earnings per share was calculated by dividing net income attributable to Stoneridge, Inc. by the weighted-average of all potentially dilutive Common Shares that were outstanding during the periods presented. Actual weighted-average Common Shares outstanding used in calculating basic and diluted net income per share were as follows: Year ended December 31, Basic weighted-average Common Shares outstanding 28,402,227 28,082,114 27,763,990 Effect of dilutive shares 677,599 689,531 544,932 Diluted weighted-average Common Shares outstanding 29,079,826 28,771,645 28,308,922 There were no performance-based restricted Common Shares outstanding at December 31, 2018, 2017 or 2016. There were also 628,220, 766,538 and 843,140 performance-based right to receive Common Shares outstanding at December 31, 2018, 2017 and 2016. 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 year were the end of the contingency period. |
Deferred Finance Costs, net | Deferred Financing Costs, net Deferred financing costs are amortized over the life of the related financial instrument using the straight-line method, which approximates the effective interest method. Deferred finance cost amortization and debt discount accretion for the years ended December 31, 2018, 2017 and 2016 was $326, $324 and $355, respectively, and is included as a component of interest expense, net in the consolidated statements of operations. The Company has elected to continue to present deferred financing costs related to the Credit Facility within long-term assets in the Company’s consolidated balance sheets. Deferred financing costs, net, were $882 and $1,208, as of December 31, 2018 and 2017, respectively. |
Changes in Accumulated Other Comprehensive Loss by Component | Changes in Accumulated Other Comprehensive Loss by Component Changes in accumulated other comprehensive loss for the years ended December 31, 2018 and 2017 were as follows: Foreign Unrealized currency gain (loss) translation on derivatives Total Balance at January 1, 2018 $ (69,417) $ (143) $ (69,560) Other comprehensive (loss) income before reclassifications (16,627) 1,448 (15,179) Amounts reclassified from accumulated other comprehensive loss - (1,013) (1,013) Net other comprehensive (loss) income, net of tax (16,627) 435 (16,192) Balance at December 31, 2018 $ (86,044) $ 292 $ (85,752) Balance at January 1, 2017 $ (67,895) $ (18) $ (67,913) Other comprehensive income before reclassifications 15,473 509 15,982 Amounts reclassified from accumulated other comprehensive loss - (634) (634) Net other comprehensive income (loss), net of tax 15,473 (125) 15,348 Reclassification of foreign currency translation associated with noncontrolling interest acquired (16,995) - - Balance at December 31, 2017 $ (69,417) $ (143) $ (69,560) |
Reclassifications | Reclassifications Certain prior period amounts have been reclassified to conform to their 2018 presentation in the consolidated financial statements. |
Recently Issued Accounting Standards | Recently Adopted Accounting Standards In March 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2018-05, “Income Taxes – Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118.” The standard provides for a provisional one-year measurement period for entities to finalize their accounting for certain tax effects of the Tax Legislation. The Company adopted this standard as of January 1, 2018, which did not have a material impact on its consolidated financial statements. The Company has completed its accounting for SAB 118 as of December 31, 2018. In January 2017, the FASB issued ASU 2017‑01, “Clarifying the Definition of a Business (Topic 805)”. It revises the definition of a business and provides a framework to evaluate when an input and a substantive process are present in an acquisition to be considered a business. This guidance was effective for annual periods beginning after December 15, 2017. The Company adopted this standard on January 1, 2018, which did not have a material impact on its consolidated financial statements. In October 2016, the FASB issued ASU 2016-16, “Accounting for Income Taxes: Intra-Entity Asset Transfers of Assets Other than Inventory (Topic 740)”. This guidance requires that the tax effects of all intra-entity sales of assets other than inventory be recognized in the period in which the transaction occurs. The Company adopted this standard on January 1, 2018, which did not have a material impact on its consolidated financial statements. In August 2016, the FASB issued ASU 2016-15, “Statement of Cash Flows - Classification of Certain Cash Receipts and Cash Payments (Topic 230)”, which provides guidance on the presentation and classification of certain cash receipts and cash payments in the statement of cash flows in order to reduce diversity in practice. This ASU was effective for interim and annual periods beginning after December 15, 2017. The Company adopted this standard as of January 1, 2018, which did not have a material impact on its consolidated financial statements. In January 2016, the FASB issued ASU 2016-01, “ Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities.” The standard requires equity investments and other ownership interests in unconsolidated entities (other than those accounted for using the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. The Company adopted this standard as of January 1, 2018, which did not have a material impact on its consolidated financial statements. In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers” and related amendments, which is the new comprehensive revenue recognition standard (collectively known as Accounting Standard Codification (“ASC”) 606) that has superseded 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 a 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. The Company adopted this standard on January 1, 2018 using the modified retrospective transition method. Under the modified retrospective method, the Company would have recognized the cumulative effect of initially applying the standard as an adjustment to opening retained earnings at the date of initial application; however, the Company did not have any material adjustments as of the date of the adoption. The Company has not experienced a material impact on its results of operations from the adoption of ASC 606; however, the Company has expanded its disclosures consistent with the requirements of the new standard and the Company will continue to evaluate new contracts to apply the framework of ASC 606. In particular, the Company will evaluate new contracts with customers analyzing the impact, if any, on revenue from the sale of production parts, particularly in regards to material rights, variable consideration and the impact of termination clauses on the timing of revenue recognition. The majority of our revenue continues to be recognized when products are shipped from our manufacturing facilities. The Company has not changed how it accounts for reimbursable pre-production costs, currently accounted for as a reduction of costs incurred. Refer to Note 3 for the expanded revenue disclosures. Recently Issued Accounting Standards Not Yet Adopted as of December 31, 2018 In January 2018, the FASB issued ASU 2018-02, “Income Statement – Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.” This guidance gives entities the option to reclassify to retained earnings the tax effects resulting from the enactment of Tax Cuts and Jobs Act (Tax Legislation”) related to items in accumulated other comprehensive income (“AOCI”) that the FASB refers to as having been stranded in AOCI. The new guidance is effective for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years. Early adoption is permitted for periods for which financial statements have not yet been issued or made available for issuance, including the period the Tax Legislation was enacted. The Company will adopt this standard as of January 1, 2019, which is not expected to have a material impact on its consolidated financial statements. In June 2016, the FASB issued ASU 2016-13, “Financial Instruments - Credit Losses (Topic 326) Measurement of Credit Losses on Financial Instruments”, which requires measurement and recognition of expected credit losses for financial assets held and requires enhanced disclosures regarding significant estimates and judgments used in estimating credit losses. ASU 2016-13 is effective for public business entities for annual periods beginning after December 15, 2019, and early adoption is permitted for annual periods beginning after December 15, 2018. The Company is currently evaluating the impact of its pending adoption of ASU 2016-13 on the consolidated financial statements. The Company will adopt this standard as of January 1, 2020 and are still evaluating the impact on its consolidated financial statements. In February 2016, the FASB issued ASU 2016‑02, “Leases (Topic 842)”, which will require that a lessee recognize assets and liabilities on the balance sheet for all leases with a lease term of more than twelve months, with the result being the recognition of a right of use asset and a lease liability. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The Company will adopt this standard as of January 1, 2019 using the modified retrospective approach and will elect the transition option to use the effective date January 1, 2019, as the date of initial application. The Company will not adjust its comparative period financial statements for effects of the ASU 2016-02, or make the new required lease disclosures for periods before the effective date. The Company will recognize its cumulative effect transition adjustment as of the effective date. In addition, the Company will elect the package of practical expedients permitted under the transition guidance within the new standard. The impact of adoption will result in the recognition of right of use assets estimated in the range of $15,600 to $21,200, with corresponding lease liabilities of the same amount. The standard will not have a significant impact on the Company’s consolidated results of operations and cash flows. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Summary of Significant Accounting Policies [Abstract] | |
Schedule of Accounts Receivable and Concentration of Credit Risk | Ford Motor Company 12 % 14 % 17 % Volvo 8 % 6 % 6 % |
Schedule of Inventory, Current | December 31, Raw materials $ 54,382 $ 47,588 Work-in-progress 4,710 5,806 Finished goods 20,186 20,077 Total inventories, net $ 79,278 $ 73,471 |
Schedule of Business Combination Consideration Transferred | Cash $ 79,675 Fair value of earn-out consideration and other adjustments 4,208 Total purchase price $ 83,883 |
Schedule of Purchase Price Allocation | At January 31, 2017 Cash $ 2,165 Accounts receivable 7,929 Inventory 9,409 Prepaid and other current assets 298 Property, plant and equipment 6,668 Identifiable intangible assets 38,739 Other long-term assets 6 Total identifiable assets acquired 65,214 Accounts payable 3,020 Other current liabilities 834 Deferred tax liabilities 10,206 Warranty liability 899 Total liabilities assumed 14,959 Net identifiable assets acquired 50,255 Goodwill 33,628 Net assets acquired $ 83,883 |
Business Acquisition, Pro Forma Information | Year ended December 31 Net sales $ 829,474 $ 752,864 Net income attributable to Stoneridge, Inc. and subsidiaries $ 45,283 $ 8,218 |
Property, Plant and Equipment | December 31, Land and land improvements $ 4,619 $ 4,863 Buildings and improvements 37,234 37,581 Machinery and equipment 212,225 192,107 Office furniture and fixtures 9,929 10,070 Tooling 75,620 75,038 Information technology 27,179 27,466 Vehicles 872 881 Leasehold improvements 2,799 2,841 Construction in progress 23,064 24,312 Total property, plant, and equipment 393,541 375,159 Less: accumulated depreciation (281,328) (264,757) Property, plant and equipment, net $ 112,213 $ 110,402 |
Schedule of Property, Plant and Equipment Estimated Useful Lives | Buildings and improvements 10-40 years Machinery and equipment 3-10 years Office furniture and fixtures 3-10 years Tooling 2-5 years Information technology 3-7 years Vehicles 3-5 years Leasehold improvements shorter of lease term or 3-10 years |
Schedule of Goodwill | Electronics Balance at January 1, 2018 $ 38,419 Currency translation (1,702) Balance at December 31, 2018 $ 36,717 Electronics Balance at January 1, 2017 $ 931 Acquisition of business 33,628 Currency translation 3,860 Balance at December 31, 2017 $ 38,419 |
Schedule of Acquired Finite-Lived Intangible Assets by Major Class | Acquisition Accumulated As of December 31, 2018 cost amortization Net Customer lists $ 52,200 $ (14,549) $ 37,651 Tradenames 20,689 (5,884) 14,805 Technology 15,581 (6,005) 9,576 Total $ 88,470 $ (26,438) $ 62,032 Acquisition Accumulated As of December 31, 2017 cost amortization Net Customer lists $ 57,672 $ (12,695) $ 44,977 Tradenames 23,546 (5,646) 17,900 Technology 17,443 (5,077) 12,366 Other 41 (41) - Total $ 98,702 $ (23,459) $ 75,243 |
Accrued Expenses and Other Current Liabilities | As of December 31 Compensation related liabilities $ 18,717 $ 22,429 Contingent consideration (A) 8,602 - Product warranty and recall obligations 7,211 6,867 Accrued income taxes 1,507 6,897 Other (B) 21,843 16,353 Total accrued expenses and other current liabilities $ 57,880 $ 52,546 (A) Accrued contingent consideration includes the Orlaco contingent consideration, as referenced in Note 2 and Note 10, and is included in accrued expenses and other current liabilities for the year ended December 31, 2018 and was included in other long-term liabilities for the year ended December 31, 2017. (B) “Other” is comprised of miscellaneous accruals, none of which individually contributed a significant portion of the total. |
Schedule of Product Warranty and Recall Liability | Year ended December 31, Product warranty and recall at beginning of period $ 9,979 $ 9,344 Accruals for warranties established during period 6,217 4,933 Assumed warranty liability related to Orlaco - 899 Aggregate changes in pre-existing liabilities due to claim developments 646 4,899 Settlements made during the period (5,831) (10,407) Foreign currency translation (517) 311 Product warranty and recall at end of period $ 10,494 $ 9,979 |
Schedule of Weighted-Average Number of Shares | Year ended December 31, Basic weighted-average Common Shares outstanding 28,402,227 28,082,114 27,763,990 Effect of dilutive shares 677,599 689,531 544,932 Diluted weighted-average Common Shares outstanding 29,079,826 28,771,645 28,308,922 |
Changes in Accumulated Other Comprehensive Loss by Component | Foreign Unrealized currency gain (loss) translation on derivatives Total Balance at January 1, 2018 $ (69,417) $ (143) $ (69,560) Other comprehensive (loss) income before reclassifications (16,627) 1,448 (15,179) Amounts reclassified from accumulated other comprehensive loss - (1,013) (1,013) Net other comprehensive (loss) income, net of tax (16,627) 435 (16,192) Balance at December 31, 2018 $ (86,044) $ 292 $ (85,752) Balance at January 1, 2017 $ (67,895) $ (18) $ (67,913) Other comprehensive income before reclassifications 15,473 509 15,982 Amounts reclassified from accumulated other comprehensive loss - (634) (634) Net other comprehensive income (loss), net of tax 15,473 (125) 15,348 Reclassification of foreign currency translation associated with noncontrolling interest acquired (16,995) - - Balance at December 31, 2017 $ (69,417) $ (143) $ (69,560) |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Revenue [Abstract] | |
Revenue by Segment and Geographical Location | Year ended Control Devices Electronics PST Consolidated December 31 Net Sales: North America $ 395,148 $ 409,596 $ 85,363 $ 62,174 $ - $ - $ 480,511 $ 471,770 South America - - - - 80,175 94,533 80,175 94,533 Europe 14,727 8,164 255,400 216,577 - - 270,127 224,741 Asia Pacific 31,422 29,768 3,964 3,632 - - 35,386 33,400 Total net sales $ 441,297 $ 447,528 $ 344,727 $ 282,383 $ 80,175 $ 94,533 $ 866,199 $ 824,444 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Investments [Abstract] | |
Summary of the change in noncontrolling interest | Year ended December 31 Noncontrolling interest at beginning of period $ 13,762 $ 13,310 Net loss (130) (1,887) Foreign currency translation 826 2,339 Comprehensive income 696 452 Acquisition of noncontrolling interest (14,458) - Noncontrolling interest at end of period $ - $ 13,762 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt [Abstract] | |
Schedule of Debt | December 31, 2018 December 31, 2017 Interest rates at December 31, 2018 Maturity Revolving Credit Facility Credit Facility $ 96,000 $ 121,000 3.40% - 3.58% September 2021 Debt PST short-term obligations 989 - 10.0% - 11.27% PST long-term notes 1,527 8,016 November 2021 Other - 28 Total debt 2,516 8,044 Less: current portion (1,533) (4,192) Total long-term debt, net $ 983 $ 3,852 |
Future Maturities of Long-Term Debt | Year ended December 31, 2019 $ 1,533 2020 513 2021 96,470 2022 - 2023 - Total $ 98,516 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Taxes [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | Year ended December 31 Income before income taxes: Domestic $ 32,907 $ 36,657 $ 35,088 Foreign 32,151 15,925 4,097 Total income before income taxes $ 65,058 $ 52,582 $ 39,185 Provision for income taxes: Current: Federal $ 2,370 $ 2,478 $ 760 State and foreign 6,288 11,014 2,575 Total current expense 8,658 13,492 3,335 Deferred: Federal $ 3,788 $ (2,585) $ (37,828) State and foreign (1,236) (3,374) (1,896) Total deferred benefit 2,552 (5,959) (39,724) Total income tax (benefit) expense $ 11,210 $ 7,533 $ (36,389) |
Schedule of Effective Income Tax Rate Reconciliation | Year ended December 31 Statutory U.S. federal income tax rate 21.0 % 35.0 % 35.0 % State income taxes, net of federal tax benefit 0.1 (0.8) 1.9 Tax credits and incentives (7.9) (4.2) (0.8) Foreign tax rate differential 1.1 (4.5) (4.7) Impact of change in enacted tax law (1.3) (17.2) - Change in valuation allowance (3.0) 4.2 (121.6) U.S. tax on foreign earnings 1.0 - - Compensation and benefits 1.3 (1.1) 0.3 Other (A) 4.9 2.9 (2.9) Effective income tax rate 17.2 % 14.3 % (92.8) % (A) The amount for 2018 includes the impact of reducing tax attributes due to legal entity consolidation which is completely offset with change in valuation allowance. |
Schedule of Deferred Tax Assets and Liabilities | As of December 31 Deferred tax assets: Inventories $ 2,135 $ 1,921 Employee compensation and benefits 1,225 2,647 Accrued liabilities and reserves 4,181 5,187 Property, plant and equipment 647 1,045 Tax loss carryforwards 8,437 10,929 Tax credit carryforwards 26,221 29,744 Other 410 416 Gross deferred tax assets 43,256 51,889 Less: Valuation allowance (8,962) (11,986) Deferred tax assets less valuation allowance 34,294 39,903 Deferred tax liabilities: Property, plant and equipment (2,545) (3,489) Intangible assets (16,683) (22,067) Outside basis difference in foreign subsidiary (13,750) (13,750) Other (4,090) (3,243) Gross deferred tax liabilities (37,068) (42,549) Net deferred tax liabilities $ (2,774) $ (2,646) |
Schedule of classification of Net Deferred Tax Assets and Liability | Year ended December 31 Long-term deferred tax assets $ 12,121 $ 16,228 Long-term deferred tax liabilities (14,895) (18,874) Net deferred tax liabilities $ (2,774) $ (2,646) |
Summary of Income Tax Contingencies | Balance as of January 1 $ 3,645 $ 3,839 $ 4,304 Tax positions related to the current year: Additions - 31 208 Tax positions related to the prior years: Reductions (165) (176) (61) Expirations of statutes of limitation 1 (49) (612) Balance as of December 31 $ 3,481 $ 3,645 $ 3,839 |
Schedule of Tax Years Open for Examination | Jurisdiction Open Tax Years U.S. Federal 2015-2018 Argentina 2013-2018 Brazil 2013-2018 China 2015-2018 France 2016-2018 Germany 2015-2018 Italy 2013-2018 Mexico 2013-2018 Netherlands 2015-2018 Spain 2014-2018 Sweden 2013-2018 United Kingdom 2017-2018 |
Operating Lease Commitments (Ta
Operating Lease Commitments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Operating Lease Commitments [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases | Year ended December 31, 2019 $ 5,691 2020 4,131 2021 3,256 2022 2,444 2023 2,477 Thereafter 4,106 Total $ 22,105 |
Share-Based Compensation Plans
Share-Based Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Share-Based Compensation [Abstract] | |
Schedule of the Allocation of Performance Shares Between Total Shareholder Return and Earnings per Share | Total shareholder return 55 % 55 % 55 % Earnings per share 45 % 45 % 45 % |
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award | A summary of the status of the Company’s non-vested share units as of December 31, 2018 and the changes during the year then ended, are presented below: Performance-based Time-based awards awards Weighted- Weighted- Common average grant Common average grant Shares date fair value Shares date fair value Non-vested as of December 31, 2017 443,152 $ 15.01 744,188 $ 14.92 Granted 176,116 $ 24.69 215,490 $ 29.41 Vested (182,451) $ 13.21 (284,462) $ 11.19 Forfeited or cancelled (16,821) $ 19.99 (46,996) $ 17.13 Non-vested as of December 31, 2018 419,996 $ 19.64 628,220 $ 21.41 A summary of the status of the Company’s non-vested share units as of December 31, 2017 and the changes during the year then ended, are presented below: Time-based awards Weighted- Performance-based Common average grant Common average grant Shares date fair value Shares date fair value Non-vested as of December 31, 2016 612,037 $ 12.32 825,140 $ 12.14 Granted 177,664 $ 18.73 217,495 $ 21.54 Vested (310,207) $ 12.05 (165,783) $ 11.72 Forfeited or cancelled (36,342) $ 13.23 (132,664) $ 12.52 Non-vested as of December 31, 2017 443,152 $ 15.01 744,188 $ 14.92 |
Financial Instruments and Fai_2
Financial Instruments and Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Financial Instruments and Fair Value Measurements [Abstract] | |
Notional Amounts and Fair Values of Derivative Instruments in the Consolidated Balance | Prepaid expenses Accrued expenses and Notional amounts (A) and other current assets other current liabilities December 31 Derivatives designated as hedging instruments: Cash flow hedges: Forward currency contracts $ 9,017 $ 9,143 $ 370 $ - $ - $ 221 Derivatives not designated as hedging instruments: Forward currency contracts $ - $ 1,486 $ - $ - $ - $ 48 (A) Notional amounts represent the gross contract / notional amount of the derivatives outstanding. |
Amounts Recorded for the Cash Flow Hedges in Other Comprehensive Income (Loss) in Shareholders' Equity and in Net Income | Gains (loss) reclassified from Gain (loss) recorded in other other comprehensive income comprehensive income (loss) (loss) into net income (A) 2016 Derivatives designated as cash flow hedges: Forward currency contracts $ 1,967 $ 441 $ (582) $ 1,376 $ 634 $ (164) (A) Gains and losses reclassified from comprehensive loss into net income were recognized in COGS in the Company’s consolidated statements of operations. |
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 inputs used. December 31, December 31, Fair values estimated using Level 1 Level 2 Level 3 Fair value inputs inputs inputs Fair value Financial assets carried at fair value: Forward currency contracts $ 370 $ - $ 370 $ - $ - Total financial assets carried at fair value $ 370 $ - $ 370 $ - $ - Financial liabilities carried at fair value: Forward currency contracts $ - $ - $ - $ - $ 269 Earn-out consideration 18,672 - - 18,672 20,746 Total financial liabilities carried at fair value $ 18,672 $ - $ - $ 18,672 $ 21,015 |
Summary of the Change in Fair Value of the Level 3 Financial Liabilities Related to Contingent Consideration | The following table sets forth a summary of the change in fair value of the Company’s Level 3 financial liabilities related to earn-out consideration that are measured at fair value on a recurring basis. Orlaco PST Total Balance at December 31, 2017 $ 8,637 $ 12,109 $ 20,746 Change in fair value 369 (156) 213 Foreign currency adjustments (404) (1,883) (2,287) Balance at December 31, 2018 $ 8,602 $ 10,070 $ 18,672 Orlaco PST Total Balance at December 31, 2016 $ - $ - $ - Fair value on acquisition date 3,243 10,180 13,423 Change in fair value 4,853 2,632 7,485 Foreign currency adjustments 541 (703) (162) Balance at December 31, 2017 $ 8,637 $ 12,109 $ 20,746 |
Restructuring and Business Re_2
Restructuring and Business Realignment (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Schedule of Restructuring and Related Costs | Business realignment charges by reportable segment were as follows: Year ended December 31 Control Devices (A) $ 169 $ - $ - Electronics (B) 63 1,223 1,180 PST (C) 478 589 1,437 Total business realignment charges $ 710 $ 1,812 $ 2,617 (A) Business realignment severance costs for the year ended December 31, 2018 related to D&D were $128. Business realignment severance costs for the year ended December 31, 2017 related to SG&A were $41. (B) Business realignment severance costs for the year ended December 31, 2018 related to SG&A were $63. Business realignment severance costs for the year ended December 31, 2017 related to COGS and SG&A were $56 and $1,167, respectively. Business realignment severance costs for the year ended December 31, 2016 related to SG&A and D&D were $196 and $984, respectively. (C) Business realignment severance costs for the year ended December 31, 2018 related to COGS, SG&A and D&D were $63, $386 and $29, respectively. Business realignment severance costs for the year ended December 31, 2017 related to COGS, SG&A and D&D were $370, $218 and $1, respectively. Business realignment severance costs for the year ended December 31, 2016 related to COGS, SG&A and D&D were $437, $884 and $116, respectively. |
Schedule of Business Realignment Charges Classified by Statement of Operations | Business realignment charges classified by statement of operations line item were as follows: Year ended December 31 2016 Cost of goods sold $ 63 $ 426 $ 437 Selling, general and administrative 491 1,385 1,080 Design and development 156 1 1,100 Total business realignment charges $ 710 $ 1,812 $ 2,617 |
Electronics [Member] | |
Schedule of Restructuring and Related Costs | Accrual as of 2018 Charge Utilization Accrual as of January 1, 2018 to Expense Cash Non-Cash December 31, 2018 Employee termination benefits $ - $ 1,939 $ (1,419) $ - $ 520 Excess and obsolete inventory - 823 - (823) - Intangible impairment - 200 - (200) - Fixed asset impairment - 157 - (157) - Contract termination costs - 156 (139) - 17 Other related costs - 264 (145) - 119 Total $ - $ 3,539 $ (1,703) $ (1,180) $ 656 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | A summary of financial information by reportable segment is as follows: Year ended December 31 Net Sales: Control Devices $ 441,297 $ 447,528 $ 408,132 Inter-segment sales 8,348 5,044 1,826 Control Devices net sales 449,645 452,572 409,958 Electronics (D) 344,727 282,383 205,256 Inter-segment sales 37,126 39,501 33,361 Electronics net sales 381,853 321,884 238,617 PST 80,175 94,533 82,589 Inter-segment sales 2 563 - PST net sales 80,177 95,096 82,589 Eliminations (45,476) (45,108) (35,187) Total net sales $ 866,199 $ 824,444 $ 695,977 Operating Income (Loss): Control Devices $ 64,191 $ 72,555 $ 61,815 Electronics (D) 28,236 18,119 14,798 PST 4,989 2,661 (3,462) Unallocated Corporate (A) (30,412) (35,965) (29,069) Total operating income $ 67,004 $ 57,370 $ 44,082 Depreciation and Amortization: Control Devices $ 11,914 $ 10,887 $ 10,276 Electronics (D) 8,982 8,143 3,971 PST 7,443 8,316 8,559 Unallocated Corporate 852 584 452 Total depreciation and amortization (B) $ 29,191 $ 27,930 $ 23,258 Interest Expense, net: Control Devices $ 76 $ 103 $ 226 Electronics 85 119 142 PST 824 1,812 3,396 Unallocated Corporate 3,735 3,749 2,513 Total interest expense, net $ 4,720 $ 5,783 $ 6,277 Capital Expenditures: Control Devices $ 16,737 $ 17,484 $ 13,261 Electronics (D) 5,965 8,158 5,665 PST 3,242 3,831 3,213 Unallocated Corporate (C) 3,083 2,697 2,337 Total capital expenditures $ 29,027 $ 32,170 $ 24,476 December 31, December 31, Total Assets: Control Devices $ 175,708 $ 164,632 Electronics (D) 265,838 252,324 PST 81,002 100,382 Corporate (C) 359,837 377,657 Eliminations (322,866) (335,958) Total assets $ 559,519 $ 559,037 The following table presents net sales and long-term assets for the geographic areas in which the Company operates: Year ended December 31 Net Sales: North America $ 480,511 $ 471,770 $ 428,046 South America 80,175 94,533 82,589 Europe and Other (D) 305,513 258,141 185,342 Total net sales $ 866,199 $ 824,444 $ 695,977 December 31, December 31, Long-term Assets: North America $ 86,763 $ 89,997 South America 45,408 58,989 Europe and Other (D) 107,171 106,682 Total long-term assets $ 239,342 $ 255,668 (A) Unallocated Corporate expenses include, among other items, accounting/finance, human resources, information technology and legal 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, fixed assets for the headquarter building, information technology assets, equity investments and investments in subsidiaries. (D) The amounts for 2018 and 2017 include the Orlaco business which was acquired on January 31, 2017 as disclosed in Note 2. |
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas | The following table presents net sales and long-term assets for the geographic areas in which the Company operates: Year ended December 31 Net Sales: North America $ 480,511 $ 471,770 $ 428,046 South America 80,175 94,533 82,589 Europe and Other (D) 305,513 258,141 185,342 Total net sales $ 866,199 $ 824,444 $ 695,977 December 31, December 31, Long-term Assets: North America $ 86,763 $ 89,997 South America 45,408 58,989 Europe and Other (D) 107,171 106,682 Total long-term assets $ 239,342 $ 255,668 (A) Unallocated Corporate expenses include, among other items, accounting/finance, human resources, information technology and legal 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, fixed assets for the headquarter building, information technology assets, equity investments and investments in subsidiaries. (D) The amounts for 2018 and 2017 include the Orlaco business which was acquired on January 31, 2017 as disclosed in Note 2. |
Unaudited Quarterly Financial_2
Unaudited Quarterly Financial Data (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Unaudited Quarterly Financial Data [Abstract] | |
Schedule of Quarterly Financial Information | The following is a summary of quarterly results of operations: Quarter ended 2018 December 31 September 30 June 30 March 31 Net sales $ 210,814 $ 208,853 $ 220,602 $ 225,930 Gross profit 57,959 63,285 67,418 67,969 Operating income 12,664 18,312 19,181 16,847 Income tax expense 690 3,467 3,820 3,233 Net income 12,056 13,292 15,120 13,380 Earnings per share attributable to Stoneridge, Inc.: Basic (A) $ 0.42 $ 0.47 $ 0.53 $ 0.47 Diluted (A) $ 0.42 $ 0.46 $ 0.52 $ 0.46 Quarter ended 2017 December 31 September 30 June 30 March 31 Net sales $ 207,440 $ 203,582 $ 209,111 $ 204,311 Gross profit 61,026 62,549 63,414 61,151 Operating income 13,234 13,296 15,676 15,164 Income tax (benefit) expense (B) (6,036) 3,809 5,189 4,571 Net income 18,908 8,049 8,919 9,173 Net loss attributable to noncontrolling interests - - (100) (30) Net income attributable to Stoneridge, Inc. 18,908 8,049 9,019 9,203 Earnings per share attributable to Stoneridge, Inc.: Basic (A) $ 0.67 $ 0.29 $ 0.32 $ 0.33 Diluted (A) $ 0.65 $ 0.28 $ 0.32 $ 0.32 (A) Earnings per share for the year may not equal the sum of the four historical quarters earnings per share due to changes in weighted-average basic and diluted shares outstanding. The impact of the Tax Legislation was an increase in tax expense of $6,200 due to the one-time deemed repatriation tax, offset by the favorable impacts of the reduced tax rate on the Company’s net deferred tax liabilities and other deferred tax adjustments of $(15,300) million related to certain earnings included in the one-time transition tax. |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Narrative) (Details) R$ in Thousands, $ in Thousands | May 15, 2017 | May 15, 2017 | Dec. 31, 2011 | Apr. 30, 2017 | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2018USD ($)shares | Dec. 31, 2017BRL (R$) | Dec. 31, 2017USD ($)shares | Dec. 31, 2016USD ($)shares | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2016shares | Jan. 01, 2019USD ($) | May 16, 2017 |
Accounting Policy [Line Items] | |||||||||||||||||
Depreciation expense | $ 22,786 | $ 21,490 | $ 19,998 | ||||||||||||||
Less: Net loss attributable to noncontrolling interest | $ (100) | $ (30) | (130) | (1,887) | |||||||||||||
Preproduction costs related to long-term supply arrangements, costs capitalized | 6,875 | 9,260 | |||||||||||||||
Impairment of Goodwill | 0 | 0 | 0 | ||||||||||||||
Intangible assets, net | 62,032 | 75,243 | |||||||||||||||
Amortization | 6,406 | 6,440 | 3,259 | ||||||||||||||
Amortization expense next year | 6,205 | ||||||||||||||||
Amortization expense year two | 6,205 | ||||||||||||||||
Amortization expense year three | 6,205 | ||||||||||||||||
Amortization expense year four | 6,205 | ||||||||||||||||
Amortization expense year five | $ 6,205 | ||||||||||||||||
Intangible assets, weighted-average remaining amortization period, years | 12 years | ||||||||||||||||
Intangible impairment charge | $ 202 | ||||||||||||||||
Design and development expense | $ 51,074 | $ 48,877 | $ 40,212 | ||||||||||||||
Design and development expense percentage | 5.90% | 5.90% | 5.90% | 5.80% | |||||||||||||
Research and development expense reimbursed | $ 16,540 | $ 14,946 | $ 12,764 | ||||||||||||||
Share-based compensation expense | 5,632 | 7,265 | 6,134 | ||||||||||||||
Share-based compensation expense capitalized as inventory | 0 | 0 | 0 | ||||||||||||||
Cumulative goodwill impairment | 300,083 | 300,083 | |||||||||||||||
Product warranty and recall accrual | 3,283 | 3,112 | |||||||||||||||
Inventory amount, FIFO | 64,745 | 54,837 | |||||||||||||||
Inventory amount, weighted average cost | 14,533 | 18,634 | |||||||||||||||
Foreign currency transaction gain (loss) | 487 | (500) | 268 | ||||||||||||||
Amortization of financing costs | 326 | 324 | 355 | ||||||||||||||
Deferred financing costs, net | 882 | 1,208 | |||||||||||||||
Selling, General and Administrative Expenses [Member] | |||||||||||||||||
Accounting Policy [Line Items] | |||||||||||||||||
Share-based compensation expense | 5,632 | 7,265 | 6,134 | ||||||||||||||
Selling, General and Administrative Expenses [Member] | CEO Retirement Additional Expense [Member] | |||||||||||||||||
Accounting Policy [Line Items] | |||||||||||||||||
Additional stock compensation expense in connection with retirement of former President and CEO | $ 545 | ||||||||||||||||
Prepaid Expenses and Other Current Assets [Member] | |||||||||||||||||
Accounting Policy [Line Items] | |||||||||||||||||
Preproduction costs related to long-term supply arrangements, costs capitalized | 6,875 | 8,894 | |||||||||||||||
Electronics [Member] | |||||||||||||||||
Accounting Policy [Line Items] | |||||||||||||||||
Acquisition of business | 33,628 | ||||||||||||||||
Intangible impairment charge | 202 | ||||||||||||||||
PST [Member] | |||||||||||||||||
Accounting Policy [Line Items] | |||||||||||||||||
Accounts receivable sold | $ 0 | R$ 7983 | 2,520 | ||||||||||||||
Gain (loss) on sale of accounts receivable | 273 | (86) | |||||||||||||||
Proceeds from sale of accounts receivable | R$ 7710 | $ 2,434 | |||||||||||||||
Performance Based Restricted Common Shares [Member] | |||||||||||||||||
Accounting Policy [Line Items] | |||||||||||||||||
Common shares, non-vested | shares | 0 | 0 | 0 | 0 | |||||||||||||
Share-based compensation arrangement by share-based payment award, equity instruments other than options, nonvested, number | shares | 0 | 0 | 0 | 0 | |||||||||||||
Performance Based Right to Receive Common Shares [Member] | |||||||||||||||||
Accounting Policy [Line Items] | |||||||||||||||||
Common shares, non-vested | shares | 628,220 | 766,538 | 843,140 | 843,140 | |||||||||||||
Share-based compensation arrangement by share-based payment award, equity instruments other than options, nonvested, number | shares | 628,220 | 766,538 | 843,140 | 843,140 | |||||||||||||
Customer Lists [Member] | |||||||||||||||||
Accounting Policy [Line Items] | |||||||||||||||||
Intangible assets, net | $ 37,651 | $ 44,977 | |||||||||||||||
Customer Lists [Member] | Electronics [Member] | |||||||||||||||||
Accounting Policy [Line Items] | |||||||||||||||||
Intangible assets, net | 25,501 | ||||||||||||||||
Customer Lists [Member] | PST [Member] | |||||||||||||||||
Accounting Policy [Line Items] | |||||||||||||||||
Intangible assets, net | 12,150 | ||||||||||||||||
Trade Names [Member] | |||||||||||||||||
Accounting Policy [Line Items] | |||||||||||||||||
Intangible assets, net | 14,805 | 17,900 | |||||||||||||||
Trade Names [Member] | Electronics [Member] | |||||||||||||||||
Accounting Policy [Line Items] | |||||||||||||||||
Intangible assets, net | 4,939 | ||||||||||||||||
Trade Names [Member] | PST [Member] | |||||||||||||||||
Accounting Policy [Line Items] | |||||||||||||||||
Intangible assets, net | 9,866 | ||||||||||||||||
Technology [Member] | |||||||||||||||||
Accounting Policy [Line Items] | |||||||||||||||||
Intangible assets, net | 9,576 | 12,366 | |||||||||||||||
Technology [Member] | Electronics [Member] | |||||||||||||||||
Accounting Policy [Line Items] | |||||||||||||||||
Intangible assets, net | 4,566 | ||||||||||||||||
Technology [Member] | PST [Member] | |||||||||||||||||
Accounting Policy [Line Items] | |||||||||||||||||
Intangible assets, net | $ 5,010 | ||||||||||||||||
PST Eletronica Ltda [Member] | |||||||||||||||||
Accounting Policy [Line Items] | |||||||||||||||||
Percentage ownership in consolidated subsidiary | 74.00% | 74.00% | 74.00% | 74.00% | 74.00% | 74.00% | 74.00% | 74.00% | 74.00% | 74.00% | 74.00% | ||||||
Percentage of additional noncontrolling interest acquired | 26.00% | ||||||||||||||||
Less: Net loss attributable to noncontrolling interest | $ 130 | $ 1,887 | |||||||||||||||
MSIL | |||||||||||||||||
Accounting Policy [Line Items] | |||||||||||||||||
Equity method investment, ownership percentage | 49.00% | 49.00% | 49.00% | 49.00% | |||||||||||||
Equity method investments | $ 11,288 | $ 10,131 | |||||||||||||||
Maximum [Member] | ASU 2016-02 | |||||||||||||||||
Accounting Policy [Line Items] | |||||||||||||||||
Operating lease, right-of-use asset | $ 21,200 | ||||||||||||||||
Operating lease liability | 21,200 | ||||||||||||||||
Maximum [Member] | Pre-production Costs [Member] | |||||||||||||||||
Accounting Policy [Line Items] | |||||||||||||||||
Property, plant and equipment, useful life | 5 years | ||||||||||||||||
Minimum [Member] | ASU 2016-02 | |||||||||||||||||
Accounting Policy [Line Items] | |||||||||||||||||
Operating lease, right-of-use asset | 15,600 | ||||||||||||||||
Operating lease liability | $ 15,600 | ||||||||||||||||
Minimum [Member] | Pre-production Costs [Member] | |||||||||||||||||
Accounting Policy [Line Items] | |||||||||||||||||
Property, plant and equipment, useful life | 3 years |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Schedule of Accounts Receivable and Concentration of Credit Risk) (Details) - Sales Revenue, Net [Member] | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Ford Motor Company [Member] | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Sales Revenue, Goods, Net, Percentage | 12.00% | 14.00% | 17.00% |
Volvo [Member] | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Sales Revenue, Goods, Net, Percentage | 8.00% | 6.00% | 6.00% |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Schedule of Inventory, Current) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Summary of Significant Accounting Policies [Abstract] | ||
Raw materials | $ 54,382 | $ 47,588 |
Work-in-progress | 4,710 | 5,806 |
Finished goods | 20,186 | 20,077 |
Total inventories, net | $ 79,278 | $ 73,471 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies (Acquisitions Narrative) (Details) € in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Jan. 31, 2017EUR (€) | Jan. 31, 2017USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Jan. 31, 2017USD ($) | |
Selling, General and Administrative Expenses [Member] | |||||
Business Acquisition [Line Items] | |||||
Acquisition related costs | $ 0 | ||||
Orlaco [Member] | |||||
Business Acquisition [Line Items] | |||||
Cash | € 74,939 | $ 79,675 | |||
Cash paid to seller at closing | 67,439 | $ 71,701 | |||
Acquisition payment held in escrow to secure payment for working capital and other adjustments | € | € 7,500 | ||||
Identifiable intangible assets | 38,739 | ||||
Expense related to fair value adjustment for earn-out consideration | $ 369 | $ 4,853 | |||
Orlaco [Member] | Selling, General and Administrative Expenses [Member] | |||||
Business Acquisition [Line Items] | |||||
Acquisition related costs | 1,259 | ||||
Orlaco [Member] | Fair Value Adjustment to Inventory [Member] | |||||
Business Acquisition [Line Items] | |||||
Expense related to inventory fair value step up | $ 1,636 | ||||
Customer Lists [Member] | Orlaco [Member] | |||||
Business Acquisition [Line Items] | |||||
Identifiable intangible assets | 27,518 | ||||
Intangible asset useful life | 15 years | 15 years | |||
Trademarks [Member] | Orlaco [Member] | |||||
Business Acquisition [Line Items] | |||||
Identifiable intangible assets | 5,142 | ||||
Intangible asset useful life | 20 years | 20 years | |||
Technology Based Intangible Assets [Member] | Orlaco [Member] | |||||
Business Acquisition [Line Items] | |||||
Identifiable intangible assets | $ 6,079 | ||||
Intangible asset useful life | 7 years | 7 years |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies (Schedule of Total Consideration Transferred) (Details) - 1 months ended Jan. 31, 2017 - Orlaco [Member] € in Thousands, $ in Thousands | EUR (€) | USD ($) |
Business Acquisition [Line Items] | ||
Cash | € 74,939 | $ 79,675 |
Fair value of earn-out liability and other adjustments | 4,208 | |
Total purchase price | $ 83,883 |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies (Schedule of Estimated Fair Values of Assets Acquired and Liabilities Assumed) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 31, 2017 |
Business Acquisition [Line Items] | |||
Goodwill | $ 36,717 | $ 38,419 | |
Orlaco [Member] | |||
Business Acquisition [Line Items] | |||
Cash | $ 2,165 | ||
Accounts receivable | 7,929 | ||
Inventory | 9,409 | ||
Prepaid and other current assets | 298 | ||
Property, plant and equipment | 6,668 | ||
Identifiable intangible assets | 38,739 | ||
Other long-term assets | 6 | ||
Total identifiable assets acquired | 65,214 | ||
Accounts payable | 3,020 | ||
Other current liabilities | 834 | ||
Deferred tax liabilities | 10,206 | ||
Warranty liability | 899 | ||
Total liabilities assumed | 14,959 | ||
Net identifiable assets acquired | 50,255 | ||
Goodwill | 33,628 | ||
Net assets acquired | $ 83,883 |
Summary of Significant Accou_10
Summary of Significant Accounting Policies (Pro Forma Results of Operations) (Details) - Orlaco [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Business Acquisition [Line Items] | ||
Net sales | $ 829,474 | $ 752,864 |
Net income attributable to Stoneridge, Inc. and subsidiaries | $ 45,283 | $ 8,218 |
Summary of Significant Accou_11
Summary of Significant Accounting Policies (Property Plant and Equipment Net) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Property, Plant and Equipment [Line Items] | ||
Total property, plant, and equipment | $ 393,541 | $ 375,159 |
Less: accumulated depreciation | (281,328) | (264,757) |
Property, Plant and Equipment, Net, Total | 112,213 | 110,402 |
Land and Land Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant, and equipment | 4,619 | 4,863 |
Buildings and Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant, and equipment | 37,234 | 37,581 |
Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant, and equipment | 212,225 | 192,107 |
Office Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant, and equipment | 9,929 | 10,070 |
Tooling [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant, and equipment | 75,620 | 75,038 |
Information Technology [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant, and equipment | 27,179 | 27,466 |
Vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant, and equipment | 872 | 881 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant, and equipment | 2,799 | 2,841 |
Construction In Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant, and equipment | $ 23,064 | $ 24,312 |
Summary of Significant Accou_12
Summary of Significant Accounting Policies (Estimated Useful Lives of Property, Plant and Equipment) (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Buildings and Improvements [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 10 years |
Buildings and Improvements [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 40 years |
Machinery and Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 3 years |
Machinery and Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 10 years |
Office Furniture and Fixtures [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 3 years |
Office Furniture and Fixtures [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 10 years |
Tooling [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 2 years |
Tooling [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 5 years |
Information Technology [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 3 years |
Information Technology [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 7 years |
Vehicles [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 3 years |
Vehicles [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 5 years |
Leasehold Improvements [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 3 years |
Leasehold Improvements [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 10 years |
Summary of Significant Accou_13
Summary of Significant Accounting Policies (Schedule of Goodwill) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | ||
Goodwill, Beginning Balance | $ 38,419 | |
Goodwill, Ending Balance | 36,717 | $ 38,419 |
Electronics [Member] | ||
Segment Reporting Information [Line Items] | ||
Goodwill, Beginning Balance | 38,419 | 931 |
Acquisition of business | 33,628 | |
Currency translation | (1,702) | 3,860 |
Goodwill, Ending Balance | $ 36,717 | $ 38,419 |
Summary of Significant Accou_14
Summary of Significant Accounting Policies (Other Intangible Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Acquisition cost | $ 88,470 | $ 98,702 |
Accumulated amortization | (26,438) | (23,459) |
Intangible Assets, Net (Excluding Goodwill), Total | 62,032 | 75,243 |
Customer Lists [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Acquisition cost | 52,200 | 57,672 |
Accumulated amortization | (14,549) | (12,695) |
Intangible Assets, Net (Excluding Goodwill), Total | 37,651 | 44,977 |
Trade Names [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Acquisition cost | 20,689 | 23,546 |
Accumulated amortization | (5,884) | (5,646) |
Intangible Assets, Net (Excluding Goodwill), Total | 14,805 | 17,900 |
Technology [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Acquisition cost | 15,581 | 17,443 |
Accumulated amortization | (6,005) | (5,077) |
Intangible Assets, Net (Excluding Goodwill), Total | $ 9,576 | 12,366 |
Other Intangible Assets [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Acquisition cost | 41 | |
Accumulated amortization | $ (41) |
Summary of Significant Accou_15
Summary of Significant Accounting Policies (Accrued Expenses and Other Current Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Summary of Significant Accounting Policies [Abstract] | ||
Compensation related liabilities | $ 18,717 | $ 22,429 |
Contingent consideration | 8,602 | |
Product warranty and recall obligations | 7,211 | 6,867 |
Accrued income taxes | 1,507 | 6,897 |
Other | 21,843 | 16,353 |
Total accrued expenses and other current liabilities | $ 57,880 | $ 52,546 |
Summary of Significant Accou_16
Summary of Significant Accounting Policies (Schedule of Product Warranty Liability) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Summary of Significant Accounting Policies [Abstract] | ||
Product warranty and recall at beginning of period | $ 9,979 | $ 9,344 |
Accruals for products shipped during period | 6,217 | 4,933 |
Acquired warranty liability related to Orlaco | 899 | |
Aggregate changes in pre-existing liabilities due to claim developments | 646 | 4,899 |
Settlements made during the period | (5,831) | (10,407) |
Foreign currency translation | (517) | 311 |
Product warranty and recall at end of period | $ 10,494 | $ 9,979 |
Summary of Significant Accou_17
Summary of Significant Accounting Policies (Schedule of Weighted Average Number of Shares) (Details) - shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Summary of Significant Accounting Policies [Abstract] | |||
Basic weighted-average Common Shares outstanding | 28,402,227 | 28,082,114 | 27,763,990 |
Effect of dilutive shares | 677,599 | 689,531 | 544,932 |
Diluted weighted-average Common Shares outstanding | 29,079,826 | 28,771,645 | 28,308,922 |
Summary of Significant Accou_18
Summary of Significant Accounting Policies (Changes in Accumulated Other Comprehensive Loss by Component) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Summary of Significant Accounting Policies [Abstract] | ||||
Foreign currency translation, Beginning balance | $ (69,417) | $ (67,895) | ||
Foreign currency translation, Other comprehensive income (loss) before reclassifications | (16,627) | 15,473 | ||
Other comprehensive income (loss), Foreign currency transaction and translation adjustment, net of tax | (16,627) | 15,473 | ||
Reclassification of foreign currency translation associated with noncontrolling interest acquired | (16,995) | |||
Foreign currency translation, Ending balance | (86,044) | (69,417) | $ (67,895) | |
Unrealized gain (loss) on hedging activities, Beginning balance | (143) | (18) | ||
Unrealized gain (loss) on hedging activities, Other comprehensive income (loss) before reclassifications | 1,448 | 509 | ||
Unrealized gain (loss) on hedging activities, Amounts reclassified from accumulated other comprehensive loss | (1,013) | (634) | ||
Unrealized gain (loss) on hedging activities, Net other comprehensive income (loss), net of tax | [1] | 435 | (125) | (408) |
Unrealized gain (loss) on hedging activities, Ending balance | 292 | (143) | (18) | |
Benefit plan liability adjustments, net | (84) | |||
Accumulated other comprehensive income (loss), Beginning balance | (69,560) | (67,913) | ||
Total, Other comprehensive loss before reclassifications | (15,179) | 15,982 | ||
Total, Amounts reclassified from accumulated other comprehensive loss | (1,013) | (634) | ||
Total, Net other comprehensive loss, net of tax | (16,192) | 15,348 | ||
Accumulated other comprehensive income (loss), Ending balance | $ (85,752) | $ (69,560) | $ (67,913) | |
[1] | Net of tax expense (benefit) of $156, $(68) and $(10) for the years ended December 31, 2018, 2017 and 2016, respectively. |
Revenue (Revenue by Segment and
Revenue (Revenue by Segment and Geographical Location) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Total net sales | $ 210,814 | $ 208,853 | $ 220,602 | $ 225,930 | $ 207,440 | $ 203,582 | $ 209,111 | $ 204,311 | $ 866,199 | $ 824,444 | $ 695,977 |
North America [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total net sales | 480,511 | 471,770 | 428,046 | ||||||||
South America [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total net sales | 80,175 | 94,533 | 82,589 | ||||||||
Europe [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total net sales | 270,127 | 224,741 | |||||||||
Asia Pacific [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total net sales | 35,386 | 33,400 | |||||||||
Control Devices [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total net sales | 441,297 | 447,528 | 408,132 | ||||||||
Control Devices [Member] | North America [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total net sales | 395,148 | 409,596 | |||||||||
Control Devices [Member] | Europe [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total net sales | 14,727 | 8,164 | |||||||||
Control Devices [Member] | Asia Pacific [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total net sales | 31,422 | 29,768 | |||||||||
Electronics [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total net sales | 344,727 | 282,383 | 205,256 | ||||||||
Electronics [Member] | North America [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total net sales | 85,363 | 62,174 | |||||||||
Electronics [Member] | Europe [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total net sales | 255,400 | 216,577 | |||||||||
Electronics [Member] | Asia Pacific [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total net sales | 3,964 | 3,632 | |||||||||
PST [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total net sales | 80,175 | 94,533 | $ 82,589 | ||||||||
PST [Member] | South America [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total net sales | $ 80,175 | $ 94,533 |
Investments (Narrative) (Detail
Investments (Narrative) (Details) R$ in Thousands, $ in Thousands | May 16, 2017USD ($) | May 15, 2017 | May 15, 2017 | Dec. 31, 2011 | Dec. 31, 2018BRL (R$) | Apr. 30, 2017 | Dec. 31, 2018USD ($) | Mar. 31, 2017 | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2016USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017BRL (R$) | Dec. 31, 2017USD ($) |
Schedule of Equity Method Investments [Line Items] | |||||||||||||||||||
Income (loss) from equity method investments | $ 2,038 | $ 1,636 | $ 1,233 | ||||||||||||||||
MSIL | |||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||||||
Equity method investment, ownership percentage | 49.00% | 49.00% | 49.00% | 49.00% | 49.00% | 49.00% | |||||||||||||
Equity method investments | $ 11,288 | $ 10,131 | |||||||||||||||||
Income (loss) from equity method investments | 2,038 | 1,636 | $ 1,233 | ||||||||||||||||
PST Eletronica Ltda [Member] | |||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||||||
Percentage ownership in consolidated subsidiary | 74.00% | 74.00% | 74.00% | 74.00% | 74.00% | 74.00% | 74.00% | 74.00% | 74.00% | 74.00% | 74.00% | ||||||||
Percentage of additional noncontrolling interest acquired | 26.00% | ||||||||||||||||||
Noncontrolling interest | $ 14,458 | $ 13,762 | $ 13,310 | $ 13,762 | 0 | ||||||||||||||
Dividends payable | R$ 23204 | 5,980 | R$ 22330 | 6,742 | |||||||||||||||
Payments to Noncontrolling Interests | 1,500 | ||||||||||||||||||
Fair value of earn-out liability | 10,180 | ||||||||||||||||||
Dividends Payable, Price Index Adjustment | R$ 2752 | 709 | R$ 1879 | $ 567 | |||||||||||||||
PST Eletronica Ltda [Member] | Selling, General and Administrative Expenses [Member] | |||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||||||
Expense related to fair value adjustment for earn-out consideration | $ (156) | $ 2,632 | |||||||||||||||||
PST Eletronica Ltda [Member] | Accumulated Foreign Currency Adjustment Attributable to Noncontrolling Interest [Member] | |||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||||||
Noncontrolling interest | 16,995 | ||||||||||||||||||
PST Eletronica Ltda [Member] | Additional Paid-In Capital | |||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||||||
Noncontrolling interest | $ 31,453 | ||||||||||||||||||
Autotech Ventures [Member] | Venture Capital Funds [Member] | |||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||||||
Investment commitment | $ 10,000 | ||||||||||||||||||
Contribution expected period (in years) | 10 years | ||||||||||||||||||
Contribution | $ 437 |
Investments (Schedule of Noncon
Investments (Schedule of Noncontrolling Interest) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | |
Noncontrolling Interest [Line Items] | ||||
Net loss | $ 100 | $ 30 | $ 130 | $ 1,887 |
PST Eletronica Ltda [Member] | ||||
Noncontrolling Interest [Line Items] | ||||
Noncontrolling interest at beginning of period | $ 13,762 | 13,762 | 13,310 | |
Net loss | (130) | (1,887) | ||
Foreign currency translation | 826 | 2,339 | ||
Comprehensive income (loss) | 696 | 452 | ||
Acquisition of noncontrolling interest | (14,458) | |||
Noncontrolling interest at end of period | $ 0 | $ 13,762 |
Debt (Narrative) (Details)
Debt (Narrative) (Details) kr in Thousands, $ in Thousands | 3 Months Ended | 5 Months Ended | 12 Months Ended | ||||||||
Jun. 30, 2014USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2018SEK (kr) | Dec. 31, 2018USD ($) | Oct. 26, 2018USD ($) | Sep. 11, 2018USD ($) | Dec. 31, 2017USD ($) | Jan. 30, 2017USD ($) | Aug. 12, 2016USD ($) | Sep. 12, 2014USD ($) | Nov. 02, 2007USD ($) | |
Debt Instrument [Line Items] | |||||||||||
Capitalized deferred financing costs | $ 61 | $ 399 | |||||||||
Notes covenant compliance | The Company was in compliance with all Credit Facility and debt covenants at December 31, 2018 and 2017. | ||||||||||
Borrowings outstanding | $ 96,000 | $ 121,000 | |||||||||
Outstanding letters of credit | 1,815 | 2,008 | |||||||||
Total long-term debt, net | 983 | 3,852 | |||||||||
Less: current portion | 1,533 | 4,192 | |||||||||
2,019 | 1,533 | ||||||||||
2,020 | 513 | ||||||||||
2,021 | 96,470 | ||||||||||
Senior Notes [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt interest rate | 9.50% | ||||||||||
Loss on early extinguishment of debt | $ (10,507) | ||||||||||
Revolving Credit Facility [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Line of credit facility, maximum borrowing capacity | $ 300,000 | $ 100,000 | |||||||||
Increase in maximum borrowing capacity of credit facility | $ 80,000 | ||||||||||
Credit facility, borrowing capacity | $ 100,000 | ||||||||||
Borrowings outstanding | $ 96,000 | 121,000 | |||||||||
Credit facility, capacity restrictions of investment activities | $ 10,000 | ||||||||||
Amount of permitted loans and investments in foreign subsidiaries | $ 50,000 | ||||||||||
Maximum leverage ratio | 300.00% | 300.00% | |||||||||
Minimum interest coverage ratio | 350.00% | 350.00% | |||||||||
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% | ||||||||||
Line of Credit [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Line of credit facility, maximum borrowing capacity | kr 20,000 | $ 2,259 | 2,439 | ||||||||
Line of credit | $ 0 | $ 0 | |||||||||
Amendment Three [Member] | Revolving Credit Facility [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Line of credit facility amendment date | Aug. 12, 2016 | ||||||||||
Length of the amended extension to the expiration date on debt | 2 years | ||||||||||
Line of credit expiration date | Sep. 12, 2021 | ||||||||||
PST Eletronica Ltda [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Short-term debt, weighted average interest rate | 10.45% | 10.45% | |||||||||
Long-term debt, weighted average interest rate | 8.00% | ||||||||||
PST Eletronica Ltda [Member] | Term Loan [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
2,019 | $ 1,533 | ||||||||||
2,020 | 513 | ||||||||||
2,021 | $ 470 | ||||||||||
Borrowing Sub-Limit for the Company's Foreign Subsidiaries [Member] | Amendment Three [Member] | Revolving Credit Facility [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Credit facility, capacity restrictions of investment activities | $ 80,000 | ||||||||||
Increase in sub-limit for foreign subsidiary borrowings | 30,000 | ||||||||||
Permitted Loans and Investments in Foreign Subsidiaries [Member] | Amendment Three [Member] | Revolving Credit Facility [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Increase in permitted loans and investments in foreign subsidiaries | 5,000 | ||||||||||
Amount of permitted loans and investments in foreign subsidiaries | $ 30,000 |
Debt (Schedule of Debt) (Detail
Debt (Schedule of Debt) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Jun. 30, 2014 | |
Debt Instrument [Line Items] | |||
Revolving credit facility | $ 96,000 | $ 121,000 | |
Debt: | |||
Long-term debt | 98,516 | ||
Total debt | 2,516 | 8,044 | |
Less: current portion | (1,533) | (4,192) | |
Total long-term debt, net | 983 | 3,852 | |
Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Revolving credit facility | $ 96,000 | 121,000 | |
Debt: | |||
Debt, maturity | September 2,021 | ||
Maximum [Member] | Line of Credit [Member] | |||
Debt: | |||
Interest rate | 3.58% | ||
Minimum [Member] | Line of Credit [Member] | |||
Debt: | |||
Interest rate | 3.40% | ||
Senior Notes [Member] | |||
Debt: | |||
Debt interest rate | 9.50% | ||
PST Short-Term Obligations [Member] | |||
Debt Instrument [Line Items] | |||
Short-term debt | $ 989 | ||
Debt: | |||
Debt, maturity | 2,019 | ||
PST Short-Term Obligations [Member] | Maximum [Member] | |||
Debt: | |||
Interest rate | 11.27% | ||
PST Short-Term Obligations [Member] | Minimum [Member] | |||
Debt: | |||
Interest rate | 10.00% | ||
PST Long-Term Notes [Member] | |||
Debt: | |||
Long-term debt | $ 1,527 | 8,016 | |
Debt, maturity | November 2,021 | ||
Interest rate | 8.00% | ||
Other [Member] | |||
Debt: | |||
Total debt | $ 28 |
Debt (Future Maturities of Long
Debt (Future Maturities of Long-Term Debt) (Detail) $ in Thousands | Dec. 31, 2018USD ($) |
Debt [Abstract] | |
2,019 | $ 1,533 |
2,020 | 513 |
2,021 | 96,470 |
Total long-term debt | $ 98,516 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Operating Loss Carryforwards [Line Items] | |||||||||||
Income tax expense (benefit) on operations | $ 690 | $ 3,467 | $ 3,820 | $ 3,233 | $ (6,036) | $ 3,809 | $ 5,189 | $ 4,571 | $ 11,210 | $ 7,533 | $ (36,389) |
Effective income tax rate | 17.20% | 14.30% | (92.80%) | ||||||||
Unremitted earnings of foreign subsidiaries | 55,707 | $ 55,707 | |||||||||
Income Tax Expense (Benefit), Continuing Operations, Adjustment of Deferred Tax (Asset) Liability | $ (15,269) | ||||||||||
Effective Income Tax Rate Reconciliation, Repatriation of Foreign Earnings, Amount | 6,207 | ||||||||||
Income tax expense (benefit) due to Tax Cuts and Jobs Act | 710 | $ (131) | $ (9,062) | ||||||||
General business tax credit carry forwards, expiration date | Dec. 31, 2024 | ||||||||||
Reduction of noncurrent deferred tax asset | $ (15,269) | ||||||||||
Liability for uncertain tax positions reduction to noncurrent asset | 3,449 | 3,449 | |||||||||
Liability for uncertain tax positions, noncurrent | 32 | 32 | |||||||||
Unrecognized tax benefits that would impact effective tax rate | 3,481 | 3,645 | 3,481 | 3,645 | |||||||
Gross interest and penalties expense (benefit) | (13) | (33) | $ (59) | ||||||||
Accrued payment of interest and penalties | 19 | $ 32 | 19 | 32 | |||||||
Impairment of Goodwill | 0 | $ 0 | $ 0 | ||||||||
State and Local Jurisdiction [Member] | |||||||||||
Operating Loss Carryforwards [Line Items] | |||||||||||
Net operating loss carry forwards | 64,189 | 64,189 | |||||||||
General business and foreign tax credit carry forwards | 1,493 | 1,493 | |||||||||
Foreign Tax Authority [Member] | |||||||||||
Operating Loss Carryforwards [Line Items] | |||||||||||
Net operating loss carry forwards | 24,745 | 24,745 | |||||||||
General business and foreign tax credit carry forwards | 1,324 | 1,324 | |||||||||
U.S. Federal [Member] | |||||||||||
Operating Loss Carryforwards [Line Items] | |||||||||||
General business and foreign tax credit carry forwards | $ 23,404 | $ 23,404 |
Income Taxes (Schedule of Compo
Income Taxes (Schedule of Components of Income Tax Expense (Benefit)) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income before income taxes: | |||||||||||
Domestic | $ 32,907 | $ 36,657 | $ 35,088 | ||||||||
Foreign | 32,151 | 15,925 | 4,097 | ||||||||
Income before income taxes | 65,058 | 52,582 | 39,185 | ||||||||
Provision for income taxes: | |||||||||||
Federal | 2,370 | 2,478 | 760 | ||||||||
State and foreign | 6,288 | 11,014 | 2,575 | ||||||||
Total current expense (benefit) | 8,658 | 13,492 | 3,335 | ||||||||
Deferred: | |||||||||||
Federal | 3,788 | (2,585) | (37,828) | ||||||||
State and foreign | (1,236) | (3,374) | (1,896) | ||||||||
Total deferred benefit | 2,552 | (5,959) | (39,724) | ||||||||
Income Tax Expense (Benefit), Total | $ 690 | $ 3,467 | $ 3,820 | $ 3,233 | $ (6,036) | $ 3,809 | $ 5,189 | $ 4,571 | $ 11,210 | $ 7,533 | $ (36,389) |
Income Taxes (Schedule of Effec
Income Taxes (Schedule of Effective Income Tax Rate Reconciliation) (Details) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Taxes [Abstract] | |||
Statutory U.S. federal income tax rate | 21.00% | 35.00% | 35.00% |
State income taxes, net of federal tax benefit | 0.10% | (0.80%) | 1.90% |
Tax credits | (7.90%) | (4.20%) | (0.80%) |
Foreign rate differential | 1.10% | (4.50%) | (4.70%) |
Impact of change in enacted tax law | (1.30%) | (17.20%) | |
Change in valuation allowances | (3.00%) | 4.20% | (121.60%) |
U.S. tax on foreign earnings | 1.00% | ||
Compensation and benefits | 1.30% | (1.10%) | 0.30% |
Other | 4.90% | 2.90% | (2.90%) |
Effective Income Tax Rate Reconciliation, Percent, Total | 17.20% | 14.30% | (92.80%) |
Income Taxes (Schedule of Defer
Income Taxes (Schedule of Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred tax assets: | ||
Inventories | $ 2,135 | $ 1,921 |
Compensation and benefits | 1,225 | 2,647 |
Accrued liabilities and reserves | 4,181 | 5,187 |
Property, plant and equipment | 647 | 1,045 |
Tax loss carryforwards | 8,437 | 10,929 |
Tax credit carryforwards | 26,221 | 29,744 |
Other | 410 | 416 |
Gross deferred tax assets | 43,256 | 51,889 |
Less: Valuation allowance | (8,962) | (11,986) |
Deferred tax assets less valuation allowance | 34,294 | 39,903 |
Deferred tax liabilities: | ||
Property, plant and equipment | (2,545) | (3,489) |
Intangible assets | (16,683) | (22,067) |
Outside basis difference in foreign subsidiary | (13,750) | (13,750) |
Other | (4,090) | (3,243) |
Gross deferred tax liabilities | (37,068) | (42,549) |
Net deferred tax liabilities | $ (2,774) | $ (2,646) |
Income Taxes (Classification of
Income Taxes (Classification of Net Deferred Tax Asset) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Income Taxes [Abstract] | ||
Long-term deferred income tax assets | $ 12,121 | $ 16,228 |
Long-term deferred income tax liabilities | (14,895) | (18,874) |
Net deferred tax liabilities | $ (2,774) | $ (2,646) |
Income Taxes (Summary of Income
Income Taxes (Summary of Income Tax Contingencies) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Taxes [Abstract] | |||
Balance as of January 1 | $ 3,645 | $ 3,839 | $ 4,304 |
Tax positions related to the current year: | |||
Additions | 31 | 208 | |
Tax positions related to prior years: | |||
Reductions | (165) | (176) | (61) |
Expiration of statutes of limitation, increase | 1 | ||
Expiration of statutes of limitation | (49) | (612) | |
Balance as of December 31 | $ 3,481 | $ 3,645 | $ 3,839 |
Income Taxes (Schedule of Tax Y
Income Taxes (Schedule of Tax Years Open for Examination) (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Minimum [Member] | U.S. Federal [Member] | Internal Revenue Service (IRS) [Member] | |
Income Tax Examination [Line Items] | |
Open Tax Year | 2,015 |
Minimum [Member] | U.S. Federal [Member] | Income Tax Authority Argentina [Member] | |
Income Tax Examination [Line Items] | |
Open Tax Year | 2,013 |
Minimum [Member] | Foreign Tax Authority [Member] | Secretariat of the Federal Revenue Bureau of Brazil [Member] | |
Income Tax Examination [Line Items] | |
Open Tax Year | 2,013 |
Minimum [Member] | Foreign Tax Authority [Member] | State Administration of Taxation, China [Member] | |
Income Tax Examination [Line Items] | |
Open Tax Year | 2,015 |
Minimum [Member] | Foreign Tax Authority [Member] | Ministry of the Economy, Finance and Industry, France [Member] | |
Income Tax Examination [Line Items] | |
Open Tax Year | 2,016 |
Minimum [Member] | Foreign Tax Authority [Member] | Federal Ministry of Finance, Germany [Member] | |
Income Tax Examination [Line Items] | |
Open Tax Year | 2,015 |
Minimum [Member] | Foreign Tax Authority [Member] | Ministry of Economic Affairs and Finance, Italy [Member] | |
Income Tax Examination [Line Items] | |
Open Tax Year | 2,013 |
Minimum [Member] | Foreign Tax Authority [Member] | Mexican Tax Authority [Member] | |
Income Tax Examination [Line Items] | |
Open Tax Year | 2,013 |
Minimum [Member] | Foreign Tax Authority [Member] | Tax and Customs Administration, Netherlands [Member] | |
Income Tax Examination [Line Items] | |
Open Tax Year | 2,015 |
Minimum [Member] | Foreign Tax Authority [Member] | Tax Authority, Spain [Member] | |
Income Tax Examination [Line Items] | |
Open Tax Year | 2,014 |
Minimum [Member] | Foreign Tax Authority [Member] | Swiss Federal Tax Administration (FTA) [Member] | |
Income Tax Examination [Line Items] | |
Open Tax Year | 2,013 |
Minimum [Member] | Foreign Tax Authority [Member] | Her Majesty's Revenue and Customs (HMRC) [Member] | |
Income Tax Examination [Line Items] | |
Open Tax Year | 2,017 |
Maximum [Member] | U.S. Federal [Member] | Internal Revenue Service (IRS) [Member] | |
Income Tax Examination [Line Items] | |
Open Tax Year | 2,018 |
Maximum [Member] | U.S. Federal [Member] | Income Tax Authority Argentina [Member] | |
Income Tax Examination [Line Items] | |
Open Tax Year | 2,018 |
Maximum [Member] | Foreign Tax Authority [Member] | Secretariat of the Federal Revenue Bureau of Brazil [Member] | |
Income Tax Examination [Line Items] | |
Open Tax Year | 2,018 |
Maximum [Member] | Foreign Tax Authority [Member] | State Administration of Taxation, China [Member] | |
Income Tax Examination [Line Items] | |
Open Tax Year | 2,018 |
Maximum [Member] | Foreign Tax Authority [Member] | Ministry of the Economy, Finance and Industry, France [Member] | |
Income Tax Examination [Line Items] | |
Open Tax Year | 2,018 |
Maximum [Member] | Foreign Tax Authority [Member] | Federal Ministry of Finance, Germany [Member] | |
Income Tax Examination [Line Items] | |
Open Tax Year | 2,018 |
Maximum [Member] | Foreign Tax Authority [Member] | Ministry of Economic Affairs and Finance, Italy [Member] | |
Income Tax Examination [Line Items] | |
Open Tax Year | 2,018 |
Maximum [Member] | Foreign Tax Authority [Member] | Mexican Tax Authority [Member] | |
Income Tax Examination [Line Items] | |
Open Tax Year | 2,018 |
Maximum [Member] | Foreign Tax Authority [Member] | Tax and Customs Administration, Netherlands [Member] | |
Income Tax Examination [Line Items] | |
Open Tax Year | 2,018 |
Maximum [Member] | Foreign Tax Authority [Member] | Tax Authority, Spain [Member] | |
Income Tax Examination [Line Items] | |
Open Tax Year | 2,018 |
Maximum [Member] | Foreign Tax Authority [Member] | Swiss Federal Tax Administration (FTA) [Member] | |
Income Tax Examination [Line Items] | |
Open Tax Year | 2,018 |
Maximum [Member] | Foreign Tax Authority [Member] | Her Majesty's Revenue and Customs (HMRC) [Member] | |
Income Tax Examination [Line Items] | |
Open Tax Year | 2,018 |
Operating Lease Commitments (Na
Operating Lease Commitments (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Commitments and Contingencies [Abstract] | |||
Operating leases, rent expense, net | $ 7,278 | $ 6,261 | $ 5,290 |
Operating Lease Commitments (Sc
Operating Lease Commitments (Schedule of Future Minimum Rental Payments for Operating Leases) (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Year ended December 31, | |
2,019 | $ 5,691 |
2,020 | 4,131 |
2,021 | 3,256 |
2,022 | 2,444 |
2,023 | 2,477 |
Thereafter | 4,106 |
Total | $ 22,105 |
Share-Based Compensation Plan_2
Share-Based Compensation Plans (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | |||||||||
May 31, 2018 | May 31, 2016 | May 31, 2013 | May 31, 2010 | Apr. 30, 2006 | Apr. 30, 2005 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Share-based compensation vested in period, fair value | $ 12,577 | $ 8,718 | $ 5,394 | ||||||||
Tax benefit realized from stock based compensation | $ 1,584 | $ 858 | $ 977 | ||||||||
Time Based Awards [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Common shares, forfeited or cancelled | (16,821) | (36,342) | |||||||||
Share-based compensation restricted common shares issued | 107,510 | ||||||||||
Weighted average grant date fair value, granted | $ 24.69 | $ 18.73 | $ 13.52 | ||||||||
Unrecognized compensation expense | $ 3,321 | ||||||||||
Employee service share-based compensation, nonvested, period for recognition | 1 year 1 month 28 days | ||||||||||
Performance Based Awards [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Common shares, forfeited or cancelled | (46,996) | (132,664) | |||||||||
Share-based compensation restricted common shares issued | 187,871 | ||||||||||
Weighted average grant date fair value, granted | $ 29.41 | $ 21.54 | |||||||||
Unrecognized compensation expense | $ 3,481 | ||||||||||
Employee service share-based compensation, nonvested, period for recognition | 1 year 2 months 5 days | ||||||||||
Plan 2006 [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Share-based compensation award reserved for issuance of common shares | 4,500,000 | 3,000,000 | 1,500,000 | ||||||||
Share-based compensation, increase in awards reserved for issuance of common shares | 1,500,000 | 1,500,000 | |||||||||
Share-based compensation award, number of shares available for grant | 0 | 0 | |||||||||
Share-based compensation restricted common shares issued | 295,381 | ||||||||||
Share-based compensation expiration date | May 1, 2016 | ||||||||||
Share-based compensation, maximum number of shares issuable | 500,000 | ||||||||||
Plan 2006 [Member] | Time Based Awards [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Share-based compensation award vesting period | 3 years | 3 years | 3 years | ||||||||
Plan 2006 [Member] | Performance Based Awards [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Share-based compensation award vesting period | 3 years | 3 years | 3 years | ||||||||
2016 Plan [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Share-based compensation award reserved for issuance of common shares | 1,800,000 | ||||||||||
Share-based compensation award granted in period | 789,995 | ||||||||||
Share-based compensation award, number of shares available for grant | 1,063,691 | ||||||||||
2016 Plan [Member] | Time Based Awards [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Share-based compensation award granted in period | 316,970 | ||||||||||
Share-based compensation award vesting period | 3 years | 3 years | 3 years | ||||||||
2016 Plan [Member] | Performance Based Awards [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Share-based compensation award granted in period | 473,025 | ||||||||||
Share-based compensation award vesting period | 3 years | 3 years | 3 years | ||||||||
Director Share Plan [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Share-based compensation award reserved for issuance of common shares | 850,000 | 700,000 | 500,000 | ||||||||
Share-based compensation, increase in awards reserved for issuance of common shares | 150,000 | 200,000 | |||||||||
Share-based compensation award vesting period | 1 year | 1 year | 1 year | ||||||||
Share-based compensation restricted common shares issued | 646,052 | ||||||||||
Share-based compensation, maximum number of shares issuable | 203,948 |
Share-Based Compensation Plan_3
Share-Based Compensation Plans (Schedule of the Allocation of Performance Shares Between Total Shareholder Return and Earnings per Share) (Details) - Performance Based Awards [Member] | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total shareholder return | 55.00% | 55.00% | 55.00% |
Earnings per share | 45.00% | 45.00% | 45.00% |
Share-Based Compensation Plan_4
Share-Based Compensation Plans (Disclosure of Share-based Compensation Arrangements by Share-based Payment Award) (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Time Based Awards [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number, Beginning Balance | 443,152 | 612,037 | |
Common shares, granted | 176,116 | 177,664 | |
Common shares, vested | (182,451) | (310,207) | |
Common shares, forfeited or cancelled | (16,821) | (36,342) | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number, Ending Balance | 419,996 | 443,152 | 612,037 |
Weighted average grant date fair value, non-vested | $ 15.01 | $ 12.32 | |
Weighted average grant date fair value, granted | 24.69 | 18.73 | $ 13.52 |
Weighted average grant date fair value, vested | 13.21 | 12.05 | |
Weighted average grant date fair value, forfeited or cancelled | 19.99 | 13.23 | |
Weighted average grant date fair value, non-vested | $ 19.64 | $ 15.01 | $ 12.32 |
Performance Based Awards [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number, Beginning Balance | 744,188 | 825,140 | |
Common shares, granted | 215,490 | 217,495 | |
Common shares, vested | (284,462) | (165,783) | |
Common shares, forfeited or cancelled | (46,996) | (132,664) | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number, Ending Balance | 628,220 | 744,188 | 825,140 |
Weighted average grant date fair value, non-vested | $ 14.92 | $ 12.14 | |
Weighted average grant date fair value, granted | 29.41 | 21.54 | |
Weighted average grant date fair value, vested | 11.19 | 11.72 | |
Weighted average grant date fair value, forfeited or cancelled | 17.13 | 12.52 | |
Weighted average grant date fair value, non-vested | $ 21.41 | $ 14.92 | $ 12.14 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-Based Compensation [Abstract] | |||
Expenses related to employee benefit plans | $ 3,520 | $ 2,601 | $ 1,601 |
Financial Instruments and Fai_3
Financial Instruments and Fair Value Measurements (Narrative) (Details) € in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Mar. 31, 2018EUR (€) | |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||||
Impairment of Goodwill | $ 0 | $ 0 | $ 0 | |
Financial assets carried at fair value | 370 | |||
Forward currency asset contracts | 370 | |||
Forward currency liabilities contracts | 269 | |||
Transfers in or out of Level 3 | 0 | |||
Cash Flow Hedging [Member] | ||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||||
(Gain) loss from cash flow hedge derivatives to be reclassified | (370) | |||
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 | 9,017 | 9,143 | ||
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 | 0 | 0 | ||
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 | 0 | 0 | ||
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 | 9,017 | 9,143 | ||
Not Designated as Hedging Instrument [Member] | Forward Currency Contracts [Member] | ||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||||
Notional amounts | 1,486 | |||
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 | 1,486 | |||
Gain (loss) on derivative instruments held for trading purposes, net | 73 | $ (174) | $ 57 | |
Fair Value, Inputs, Level 2 [Member] | ||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||||
Financial assets carried at fair value | 370 | |||
Forward currency asset contracts | $ 370 | |||
Orlaco [Member] | ||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||||
Earn-out consideration | € | € 7,500 |
Financial Instruments and Fai_4
Financial Instruments and Fair Value Measurements (Schedule of Derivative Instruments in Statement of Financial Position, Fair Value) (Details) - Forward Currency Contracts [Member] - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Not Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional amounts | $ 1,486 | |
Cash Flow Hedging [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Cash flow hedges , other derivative assets | $ 370 | |
Cash Flow Hedging [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional amounts | $ 9,017 | 9,143 |
Other Liabilities [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of other derivatives | 48 | |
Other Liabilities [Member] | Cash Flow Hedging [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Cash flow hedges , prepaid expense and other current assets | $ 221 |
Financial Instruments and Fai_5
Financial Instruments and Fair Value Measurements (Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Derivatives designated as cash flow hedges: | |||
Gain (loss) recorded in other comprehensive income (loss) | $ 1,967 | $ 441 | $ (582) |
Gain (loss) reclassified from other comprehensive income (loss) into net income | $ 1,376 | $ 634 | $ (164) |
Financial Instruments and Fai_6
Financial Instruments and Fair Value Measurements (Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Financial assets carried at fair value: | ||
Forward currency asset contracts | $ 370 | |
Total financial assets carried at fair value | 370 | |
Financial liabilities carried at fair value: | ||
Forward currency liabilities contracts | $ 269 | |
Earn-out consideration | 18,672 | 20,746 |
Total financial liabilities carried at fair value | 18,672 | $ 21,015 |
Fair Value, Inputs, Level 2 [Member] | ||
Financial assets carried at fair value: | ||
Forward currency asset contracts | 370 | |
Total financial assets carried at fair value | 370 | |
Fair Value, Inputs, Level 3 [Member] | ||
Financial liabilities carried at fair value: | ||
Earn-out consideration | 18,672 | |
Total financial liabilities carried at fair value | $ 18,672 |
Financial Instruments and Fai_7
Financial Instruments and Fair Value Measurements (Schedule of Level 3 Assets and Liabilities) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Financial liability, Beginning balance | $ 20,746 | $ 0 |
Fair value on acquisition date | 13,423 | |
Change in fair value | 213 | 7,485 |
Foreign currency adjustments | (2,287) | (162) |
Financial liability, Ending balance | 18,672 | 20,746 |
PST Eletronica Ltda [Member] | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Financial liability, Beginning balance | 12,109 | 0 |
Fair value on acquisition date | 10,180 | |
Change in fair value | (156) | 2,632 |
Foreign currency adjustments | (1,883) | (703) |
Financial liability, Ending balance | 10,070 | 12,109 |
Orlaco [Member] | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Financial liability, Beginning balance | 8,637 | 0 |
Fair value on acquisition date | 3,243 | |
Change in fair value | 369 | 4,853 |
Foreign currency adjustments | (404) | 541 |
Financial liability, Ending balance | $ 8,602 | $ 8,637 |
Commitments and Contingencies (
Commitments and Contingencies (Narrative) (Details) R$ in Thousands, $ in Thousands | May 15, 2017 | May 15, 2017 | Dec. 31, 2011 | Apr. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2016 | Dec. 31, 2018BRL (R$) | Dec. 31, 2018USD ($) | Dec. 31, 2017BRL (R$) | Dec. 31, 2017USD ($) |
Short-term Debt [Line Items] | |||||||||||||||||
Product warranty and recall accrual | $ 3,283 | $ 3,112 | |||||||||||||||
Cash proceeds related to damaged inventory and incremental costs | $ 241 | $ 500 | |||||||||||||||
Cash proceeds within cash flows from investing activities | 1,403 | 711 | |||||||||||||||
Estimated insurance recoveries | 1,644 | ||||||||||||||||
Cost of Goods Sold [Member] | |||||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||||
Insurance recoveries | 189 | ||||||||||||||||
Selling, General and Administrative Expenses [Member] | |||||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||||
Gain on Business Interruption Insurance Recovery | $ 0 | ||||||||||||||||
Insurance recoveries | $ 1,923 | ||||||||||||||||
Control Devices [Member] | |||||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||||
Environmental remediation accrued undiscounted liability | 111 | 265 | |||||||||||||||
Accrued Expenses and Other Current Liabilities [Member] | Control Devices [Member] | |||||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||||
Environmental remediation accrued undiscounted liability | 111 | 253 | |||||||||||||||
Letter of Credit [Member] | Control Devices [Member] | |||||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||||
Line of credit | 1,489 | ||||||||||||||||
PST Eletronica Ltda [Member] | |||||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||||
Percentage ownership in consolidated subsidiary | 74.00% | 74.00% | 74.00% | 74.00% | 74.00% | 74.00% | 74.00% | 74.00% | 74.00% | 74.00% | 74.00% | ||||||
PST Eletronica Ltda [Member] | Civil, labor and other tax contingencies [Member] | |||||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||||
Loss contingency, estimate of possible loss | R$ 29700 | $ 7,600 | R$ 33800 | $ 10,200 |
Headquarter Relocation (Narrati
Headquarter Relocation (Narrative) (Details) - Headquarter Relocation [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Restructuring expense | $ 269 | $ 493 | $ 1,769 |
Grant Agreement, Maximum Value | 1,400 | ||
Grant income | $ 312 | $ 338 |
Restructuring and Business Re_3
Restructuring and Business Realignment (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Electronics [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | $ 3,539 | ||
Additional restructuring costs | 1,080 | ||
Corporate [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Business realignment charges | 0 | $ 0 | $ 0 |
Excess and Obsolete Inventory [Member] | Electronics [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | 823 | ||
Cost of Goods Sold [Member] | Excess and Obsolete Inventory [Member] | Electronics [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | $ 823 |
Restructuring and Business Re_4
Restructuring and Business Realignment (Schedule of Restructuring and Related Costs) (Details) - Electronics [Member] $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring Reserve, Beginning Balance | $ 0 |
Charge to expense | 3,539 |
Cash payments | (1,703) |
Utilization, Non-Cash | (1,180) |
Restructuring Reserve, Ending Balance | 656 |
Employee Severance [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring Reserve, Beginning Balance | 0 |
Charge to expense | 1,939 |
Cash payments | (1,419) |
Restructuring Reserve, Ending Balance | 520 |
Excess and Obsolete Inventory [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring Reserve, Beginning Balance | 0 |
Charge to expense | 823 |
Utilization, Non-Cash | (823) |
Restructuring Reserve, Ending Balance | 0 |
Excess and Obsolete Inventory [Member] | Cost of Goods Sold [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Charge to expense | 823 |
Intangible Impairment [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring Reserve, Beginning Balance | 0 |
Charge to expense | 200 |
Utilization, Non-Cash | (200) |
Restructuring Reserve, Ending Balance | 0 |
Fixed Asset Impairment [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring Reserve, Beginning Balance | 0 |
Charge to expense | 157 |
Utilization, Non-Cash | (157) |
Restructuring Reserve, Ending Balance | 0 |
Contract Termination [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring Reserve, Beginning Balance | 0 |
Charge to expense | 156 |
Cash payments | (139) |
Restructuring Reserve, Ending Balance | 17 |
Other Restructuring [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring Reserve, Beginning Balance | 0 |
Charge to expense | 264 |
Cash payments | (145) |
Restructuring Reserve, Ending Balance | $ 119 |
Restructuring and Business Re_5
Restructuring and Business Realignment (Schedule of Business Realignment Charges Classified by Statement of Operations) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Restructuring Cost and Reserve [Line Items] | |||
Total business realignment costs (benefit) | $ 710 | $ 1,812 | $ 2,617 |
Cost of Goods Sold [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Total business realignment costs (benefit) | 63 | 426 | 437 |
Selling, General and Administrative Expenses [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Total business realignment costs (benefit) | 491 | 1,385 | 1,080 |
Design and Development Expense [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Total business realignment costs (benefit) | 156 | 1 | 1,100 |
Control Devices [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Total business realignment costs (benefit) | 169 | ||
Control Devices [Member] | Selling, General and Administrative Expenses [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Severance costs | 41 | ||
Control Devices [Member] | Design and Development Expense [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Severance costs | 128 | ||
Electronics [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Total business realignment costs (benefit) | 63 | 1,223 | 1,180 |
Electronics [Member] | Cost of Goods Sold [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Severance costs | 56 | ||
Electronics [Member] | Selling, General and Administrative Expenses [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Severance costs | 63 | 1,167 | 196 |
Electronics [Member] | Design and Development Expense [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Severance costs | 984 | ||
PST Segment [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Total business realignment costs (benefit) | 478 | 589 | 1,437 |
PST Segment [Member] | Cost of Goods Sold [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Severance costs | 63 | 370 | 437 |
PST Segment [Member] | Selling, General and Administrative Expenses [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Severance costs | 386 | 218 | 884 |
PST Segment [Member] | Design and Development Expense [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Severance costs | $ 29 | $ 1 | $ 116 |
Segment Reporting (Narrative) (
Segment Reporting (Narrative) (Details) | 12 Months Ended |
Dec. 31, 2018segment | |
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 | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Net Sales: | |||||||||||
Net sales | $ 210,814 | $ 208,853 | $ 220,602 | $ 225,930 | $ 207,440 | $ 203,582 | $ 209,111 | $ 204,311 | $ 866,199 | $ 824,444 | $ 695,977 |
Operating Income (Loss) | |||||||||||
Total operating income (loss) | 12,664 | $ 18,312 | $ 19,181 | $ 16,847 | 13,234 | $ 13,296 | $ 15,676 | $ 15,164 | 67,004 | 57,370 | 44,082 |
Total income before income taxes | 65,058 | 52,582 | 39,185 | ||||||||
Depreciation and Amortization: | |||||||||||
Total depreciation and amortization | 29,191 | 27,930 | 23,258 | ||||||||
Interest Expense, net: | |||||||||||
Total interest expense, net | 4,720 | 5,783 | 6,277 | ||||||||
Capital Expenditures: | |||||||||||
Capital expenditures | 29,027 | 32,170 | 24,476 | ||||||||
Long-Lived Assets | 239,342 | 255,668 | 239,342 | 255,668 | |||||||
Total Assets: | |||||||||||
Total assets | 559,519 | 559,037 | 559,519 | 559,037 | |||||||
Goodwill impairment charge (benefit) | 0 | 0 | 0 | ||||||||
Continuing Operations [Member] | |||||||||||
Total Assets: | |||||||||||
Total assets | 559,519 | 559,037 | 559,519 | 559,037 | |||||||
Intersegment Eliminations [Member] | |||||||||||
Net Sales: | |||||||||||
Net sales | (45,476) | (45,108) | (35,187) | ||||||||
Total Assets: | |||||||||||
Total assets | (322,866) | (335,958) | (322,866) | (335,958) | |||||||
Electronics [Member] | |||||||||||
Net Sales: | |||||||||||
Net sales | 344,727 | 282,383 | 205,256 | ||||||||
Operating Income (Loss) | |||||||||||
Total operating income (loss) | 28,236 | 18,119 | 14,798 | ||||||||
Depreciation and Amortization: | |||||||||||
Total depreciation and amortization | 8,982 | 8,143 | 3,971 | ||||||||
Interest Expense, net: | |||||||||||
Total interest expense, net | 85 | 119 | 142 | ||||||||
Capital Expenditures: | |||||||||||
Capital expenditures | 5,965 | 8,158 | 5,665 | ||||||||
Total Assets: | |||||||||||
Total assets | 265,838 | 252,324 | 265,838 | 252,324 | |||||||
Electronics [Member] | Operating Segments [Member] | |||||||||||
Net Sales: | |||||||||||
Net sales | 381,853 | 321,884 | 238,617 | ||||||||
Electronics [Member] | Inter-Segment Sales [Member] | |||||||||||
Net Sales: | |||||||||||
Net sales | 37,126 | 39,501 | 33,361 | ||||||||
Control Devices [Member] | |||||||||||
Net Sales: | |||||||||||
Net sales | 441,297 | 447,528 | 408,132 | ||||||||
Operating Income (Loss) | |||||||||||
Total operating income (loss) | 64,191 | 72,555 | 61,815 | ||||||||
Depreciation and Amortization: | |||||||||||
Total depreciation and amortization | 11,914 | 10,887 | 10,276 | ||||||||
Interest Expense, net: | |||||||||||
Total interest expense, net | 76 | 103 | 226 | ||||||||
Capital Expenditures: | |||||||||||
Capital expenditures | 16,737 | 17,484 | 13,261 | ||||||||
Total Assets: | |||||||||||
Total assets | 175,708 | 164,632 | 175,708 | 164,632 | |||||||
Control Devices [Member] | Operating Segments [Member] | |||||||||||
Net Sales: | |||||||||||
Net sales | 449,645 | 452,572 | 409,958 | ||||||||
Control Devices [Member] | Inter-Segment Sales [Member] | |||||||||||
Net Sales: | |||||||||||
Net sales | 8,348 | 5,044 | 1,826 | ||||||||
Corporate [Member] | |||||||||||
Operating Income (Loss) | |||||||||||
Total operating income (loss) | (30,412) | (35,965) | (29,069) | ||||||||
Depreciation and Amortization: | |||||||||||
Total depreciation and amortization | 852 | 584 | 452 | ||||||||
Interest Expense, net: | |||||||||||
Total interest expense, net | 3,735 | 3,749 | 2,513 | ||||||||
Capital Expenditures: | |||||||||||
Capital expenditures | 3,083 | 2,697 | 2,337 | ||||||||
Total Assets: | |||||||||||
Total assets | 359,837 | 377,657 | 359,837 | 377,657 | |||||||
PST [Member] | |||||||||||
Net Sales: | |||||||||||
Net sales | 80,175 | 94,533 | 82,589 | ||||||||
Operating Income (Loss) | |||||||||||
Total operating income (loss) | 4,989 | 2,661 | (3,462) | ||||||||
Depreciation and Amortization: | |||||||||||
Total depreciation and amortization | 7,443 | 8,316 | 8,559 | ||||||||
Interest Expense, net: | |||||||||||
Total interest expense, net | 824 | 1,812 | 3,396 | ||||||||
Capital Expenditures: | |||||||||||
Capital expenditures | 3,242 | 3,831 | 3,213 | ||||||||
Total Assets: | |||||||||||
Total assets | $ 81,002 | $ 100,382 | 81,002 | 100,382 | |||||||
PST [Member] | Operating Segments [Member] | |||||||||||
Net Sales: | |||||||||||
Net sales | 80,177 | 95,096 | $ 82,589 | ||||||||
PST [Member] | Inter-Segment Sales [Member] | |||||||||||
Net Sales: | |||||||||||
Net sales | $ 2 | $ 563 |
Segment Reporting (Schedule o_2
Segment Reporting (Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Net Sales: | |||||||||||
Net sales | $ 210,814 | $ 208,853 | $ 220,602 | $ 225,930 | $ 207,440 | $ 203,582 | $ 209,111 | $ 204,311 | $ 866,199 | $ 824,444 | $ 695,977 |
Long-term Assets: | |||||||||||
Total long-term assets | 239,342 | 255,668 | 239,342 | 255,668 | |||||||
North America [Member] | |||||||||||
Net Sales: | |||||||||||
Net sales | 480,511 | 471,770 | 428,046 | ||||||||
Long-term Assets: | |||||||||||
Total long-term assets | 86,763 | 89,997 | 86,763 | 89,997 | |||||||
South America [Member] | |||||||||||
Net Sales: | |||||||||||
Net sales | 80,175 | 94,533 | 82,589 | ||||||||
Long-term Assets: | |||||||||||
Total long-term assets | 45,408 | 58,989 | 45,408 | 58,989 | |||||||
Europe and Other [Member] | |||||||||||
Net Sales: | |||||||||||
Net sales | 305,513 | 258,141 | $ 185,342 | ||||||||
Long-term Assets: | |||||||||||
Total long-term assets | $ 107,171 | $ 106,682 | $ 107,171 | $ 106,682 |
Subsequent Events (Narrative) (
Subsequent Events (Narrative) (Details) - Facility Closing [Member] - Subsequent Event [Member] $ in Thousands | Jan. 10, 2019USD ($) |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Restructuring initiation date | Jan. 10, 2019 |
Control Devices [Member] | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Restructuring completion date | Dec. 31, 2020 |
Control Devices [Member] | Maximum [Member] | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Estimated total cost of restructuring | $ 9,500 |
Control Devices [Member] | Minimum [Member] | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Estimated total cost of restructuring | $ 8,500 |
Unaudited Quarterly Financial_3
Unaudited Quarterly Financial Data (Narrative) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Quarterly Financial Data [Abstract] | |
Effective Income Tax Rate Reconciliation, Repatriation of Foreign Earnings, Amount | $ 6,207 |
Income Tax Expense (Benefit), Continuing Operations, Adjustment of Deferred Tax (Asset) Liability | $ (15,269) |
Unaudited Quarterly Financial_4
Unaudited Quarterly Financial Data (Schedule of Quarterly Financial Information) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Net sales | $ 210,814 | $ 208,853 | $ 220,602 | $ 225,930 | $ 207,440 | $ 203,582 | $ 209,111 | $ 204,311 | $ 866,199 | $ 824,444 | $ 695,977 |
Gross profit | 57,959 | 63,285 | 67,418 | 67,969 | 61,026 | 62,549 | 63,414 | 61,151 | |||
Operating income (loss) | 12,664 | 18,312 | 19,181 | 16,847 | 13,234 | 13,296 | 15,676 | 15,164 | 67,004 | 57,370 | 44,082 |
Provision (benefit) for income taxes | 690 | 3,467 | 3,820 | 3,233 | (6,036) | 3,809 | 5,189 | 4,571 | 11,210 | 7,533 | (36,389) |
Income (loss) from continuing operations | 53,848 | 45,049 | 75,574 | ||||||||
Net income (loss) | $ 12,056 | $ 13,292 | $ 15,120 | $ 13,380 | 18,908 | 8,049 | 8,919 | 9,173 | 53,848 | 45,049 | 75,574 |
Less: Net loss attributable to noncontrolling interest | (100) | (30) | (130) | (1,887) | |||||||
Net income (loss) attributable to Stoneridge, Inc. | $ 18,908 | $ 8,049 | $ 9,019 | $ 9,203 | $ 53,848 | $ 45,179 | $ 77,461 | ||||
Earnings (loss) per share attributable to Stoneridge, Inc.: | |||||||||||
Basic (in dollars per share) | $ 0.42 | $ 0.47 | $ 0.53 | $ 0.47 | $ 0.67 | $ 0.29 | $ 0.32 | $ 0.33 | $ 1.90 | $ 1.61 | $ 2.79 |
Diluted (in dollars per share) | $ 0.42 | $ 0.46 | $ 0.52 | $ 0.46 | $ 0.65 | $ 0.28 | $ 0.32 | $ 0.32 | $ 1.85 | $ 1.57 | $ 2.74 |
PST [Member] | |||||||||||
Net sales | $ 80,175 | $ 94,533 | $ 82,589 | ||||||||
Operating income (loss) | $ 4,989 | $ 2,661 | $ (3,462) |
SCHEDULE II - VALUATION AND Q_2
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Increase (decrease) in valuation allowance | $ (49,600,000) | ||
Accounts Receivable Reserves | |||
Balance at beginning of period | $ 1,109 | $ 1,630 | 1,066 |
Charged to cost and expenses | 1,244 | 2,173 | 1,604 |
Write-offs, Exchange Rate Fluctuations and Other Items | (1,110) | (2,694) | (1,040) |
Balance at end of period | 1,243 | 1,109 | 1,630 |
Valuation Allowance Of Deferred Tax Assets [Member] | |||
Balance at beginning of period | 11,986 | 11,125 | 59,391 |
Net additions charged to income (expense) | (1,922) | 874 | (47,659) |
Write-offs, Exchange Rate Fluctuations and Other Items | (1,102) | (13) | (607) |
Balance at end of period | $ 8,962 | $ 11,986 | $ 11,125 |