Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2019 | Oct. 25, 2019 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Sep. 30, 2019 | |
Entity File Number | 001-13337 | |
Entity Registrant Name | STONERIDGE INC | |
Entity Incorporation, State or Country Code | OH | |
Entity Tax Identification Number | 34-1598949 | |
Entity Address, Address Line One | 39675 MacKenzie Drive, Suite 400 | |
Entity Address, City or Town | Novi | |
Entity Address, State or Province | MI | |
Entity Address, Postal Zip Code | 48377 | |
City Area Code | 248 | |
Local Phone Number | 489-9300 | |
Title of 12(g) Security | Common Shares | |
Trading Symbol | SRI | |
Amendment Flag | false | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock Shares Outstanding | 27,403,031 | |
Current Fiscal Year End Date | --12-31 | |
Entity Central Index Key | 0001043337 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2019 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 55,263 | $ 81,092 |
Accounts receivable, less reserves of $1,752 and $1,243, respectively | 143,628 | 139,076 |
Inventories, net | 103,597 | 79,278 |
Prepaid expenses and other current assets | 28,754 | 20,731 |
Total current assets | 331,242 | 320,177 |
Long-term assets: | ||
Property, plant and equipment, net | 118,062 | 112,213 |
Intangible assets, net | 56,926 | 62,032 |
Goodwill | 34,867 | 36,717 |
Operating lease right of use asset | 20,899 | |
Investments and other long-term assets, net | 32,008 | 28,380 |
Total long-term assets | 262,762 | 239,342 |
Total assets | 594,004 | 559,519 |
Current liabilities: | ||
Current portion of debt | 2,752 | 1,533 |
Accounts payable | 95,804 | 87,894 |
Accrued expenses and other current liabilities | 62,092 | 57,880 |
Total current liabilities | 160,648 | 147,307 |
Long-term liabilities: | ||
Revolving credit facility | 108,500 | 96,000 |
Long-term debt, net | 559 | 983 |
Deferred income taxes | 13,374 | 14,895 |
Operating lease long-term liability | 17,059 | |
Other long-term liabilities | 17,284 | 17,068 |
Total long-term liabilities | 156,776 | 128,946 |
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 27,402 and 28,488 shares outstanding at September 30, 2019 and December 31, 2018, respectively, with no stated value | ||
Additional paid-in capital | 224,251 | 231,647 |
Common Shares held in treasury, 1,564 and 478 shares at September 30, 2019 and December 31, 2018, respectively, at cost | (50,836) | (8,880) |
Retained earnings | 202,333 | 146,251 |
Accumulated other comprehensive loss | (99,168) | (85,752) |
Total Stoneridge, Inc. shareholders' equity | 276,580 | 283,266 |
Total liabilities and shareholders' equity | $ 594,004 | $ 559,519 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) shares in Thousands, $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Statement Of Financial Position [Abstract] | ||
Accounts receivable, reserves (in dollars) | $ 1,752 | $ 1,243 |
Preferred shares, no par value | $ 0 | $ 0 |
Preferred shares, authorized | 5,000 | 5,000 |
Preferred shares, issued | 0 | 0 |
Common shares, no par value | $ 0 | $ 0 |
Common shares, authorized | 60,000 | 60,000 |
Common shares, issued | 28,966 | 28,966 |
Common shares, outstanding | 27,402 | 28,488 |
Common shares held in treasury, shares | 1,564 | 478 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income Statement [Abstract] | ||||
Net sales | $ 203,386 | $ 208,853 | $ 643,924 | $ 655,385 |
Costs and expenses: | ||||
Cost of goods sold | 151,531 | 145,568 | 474,389 | 456,713 |
Selling, general and administrative | 30,978 | 32,589 | 94,088 | 105,106 |
Gain on disposal | (33,599) | |||
Design and development | 11,554 | 12,384 | 38,838 | 39,226 |
Operating income | 9,323 | 18,312 | 70,208 | 54,340 |
Interest expense, net | 1,149 | 1,155 | 3,153 | 3,679 |
Equity in earnings of investee | (318) | (249) | (1,230) | (1,435) |
Other income, net | 381 | 647 | (148) | (216) |
Income before income taxes | 8,111 | 16,759 | 68,433 | 52,312 |
Provision for income taxes | 1,450 | 3,467 | 12,351 | 10,520 |
Net income | $ 6,661 | $ 13,292 | $ 56,082 | $ 41,792 |
Earnings per share: | ||||
Basic (in dollars per share) | $ 0.24 | $ 0.47 | $ 2.01 | $ 1.47 |
Diluted (in dollars per share) | $ 0.24 | $ 0.46 | $ 1.97 | $ 1.44 |
Weighted-average shares outstanding: | ||||
Basic (in shares) | 27,369,824 | 28,452,807 | 27,928,760 | 28,383,843 |
Diluted (in shares) | 27,795,511 | 29,065,046 | 28,425,244 | 29,073,100 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | ||
Statement Of Other Comprehensive Income [Abstract] | |||||
Net income | $ 56,082 | $ 41,792 | |||
Net income | $ 6,661 | $ 13,292 | 56,082 | 41,792 | |
Other comprehensive (loss) income, net of tax attributable to Stoneridge, Inc.: | |||||
Foreign currency translation | (11,727) | (3,339) | (13,220) | (16,866) | |
Unrealized (loss) gain on derivatives | [1] | (126) | 32 | (196) | 668 |
Other comprehensive (loss) income, net of tax attributable to Stoneridge, Inc. | (11,853) | (3,307) | (13,416) | (16,198) | |
Comprehensive income attributable to Stoneridge, Inc. | $ (5,192) | $ 9,985 | $ 42,666 | $ 25,594 | |
[1] | Net of tax expense (benefit) of $(34) and $47 for the three months ended September 30, 2019 and 2018, respectively. Net of tax expense (benefit) of $(53) and $218 for the nine months ended September 30, 2019 and 2018, respectively. |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Statement Of Other Comprehensive Income [Abstract] | ||||
Tax expense (benefit) for unrealized gain on derivatives | $ (34) | $ 47 | $ (53) | $ 218 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
OPERATING ACTIVITIES: | ||
Net income | $ 56,082 | $ 41,792 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 18,227 | 17,073 |
Amortization, including accretion of deferred financing costs | 5,035 | 5,112 |
Deferred income taxes | 4,374 | 2,399 |
Earnings of equity method investee | (1,230) | (1,435) |
Gain on sale of fixed assets | (132) | (21) |
Share-based compensation expense | 4,699 | 4,214 |
Tax benefit related to share-based compensation expense | (655) | (879) |
Gain on disposal of non-core products, net | (33,599) | |
Change in fair value of earn-out contingent consideration | 1,862 | 1,918 |
Changes in operating assets and liabilities, net of effect of business combination: | ||
Accounts receivable, net | (8,864) | (15,145) |
Inventories, net | (27,333) | (18,041) |
Prepaid expenses and other assets | (11,232) | (1,086) |
Accounts payable | 12,011 | 15,280 |
Accrued expenses and other liabilities | 1,277 | (3,543) |
Net cash provided by operating activities | 20,522 | 47,638 |
INVESTING ACTIVITIES: | ||
Capital expenditures, including intangibles | (30,771) | (22,816) |
Proceeds from sale of fixed assets | 329 | 44 |
Insurance proceeds for fixed assets | 1,403 | |
Proceeds from disposal of non-core switch and connector products | 34,386 | |
Investment in venture capital fund | (1,200) | |
Net cash provided by (used for) investing activities | 2,744 | (21,369) |
FINANCING ACTIVITIES: | ||
Revolving credit facility borrowings | 81,500 | 27,500 |
Revolving credit facility payments | (69,000) | (47,500) |
Proceeds from issuance of debt | 2,195 | 369 |
Repayments of debt | (1,300) | (4,372) |
Earn-out consideration cash payment | (3,394) | |
Other financing costs | (1,346) | |
Common Share repurchase program | (50,000) | |
Repurchase of Common Shares to satisfy employee tax withholding | (4,037) | (4,206) |
Net cash used for financing activities | (45,382) | (28,209) |
Effect of exchange rate changes on cash and cash equivalents | (3,713) | (3,408) |
Net change in cash and cash equivalents | (25,829) | (5,348) |
Cash and cash equivalents at beginning of period | 81,092 | 66,003 |
Cash and cash equivalents at end of period | 55,263 | 60,655 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest | 3,210 | 3,899 |
Cash paid for income taxes, net | $ 11,858 | $ 14,899 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Number of Common Shares outstanding | Treasury Shares | Additional Paid-In Capital | Common Shares held in treasury | Retained earnings | Accumulated other comprehensive loss | Total | ||
Balance at Dec. 31, 2017 | $ 228,486 | $ (7,118) | $ 92,264 | $ (69,560) | $ 244,072 | ||||
Common Stock, Shares, Outstanding, Beginning Balance at Dec. 31, 2017 | 28,180 | ||||||||
Treasury Stock, Shares, Beginning Balance at Dec. 31, 2017 | 786 | ||||||||
Net income | 13,380 | 13,380 | |||||||
Unrealized gain on derivatives, net | 795 | 795 | |||||||
Currency translation adjustments | 3,894 | 3,894 | |||||||
Issuance of Common Shares ( in shares) | 446 | ||||||||
Issuance of restricted Common Shares ( in treasury shares) | (446) | ||||||||
Repurchased Common Shares for treasury | (1,387) | (1,387) | |||||||
Repurchased Common Shares for treasury (in shares) | (136) | ||||||||
Repurchased Common Shares for treasury (in treasury shares) | 136 | ||||||||
Share-based compensation | (925) | (925) | |||||||
Balance at Mar. 31, 2018 | 227,561 | (8,505) | 105,432 | (64,871) | 259,617 | ||||
Common Stock, Shares, Outstanding, Ending Balance at Mar. 31, 2018 | 28,490 | ||||||||
Treasury Stock, Shares, Ending Balance at Mar. 31, 2018 | 476 | ||||||||
Balance at Dec. 31, 2017 | 228,486 | (7,118) | 92,264 | (69,560) | 244,072 | ||||
Common Stock, Shares, Outstanding, Beginning Balance at Dec. 31, 2017 | 28,180 | ||||||||
Treasury Stock, Shares, Beginning Balance at Dec. 31, 2017 | 786 | ||||||||
Net income | 41,792 | ||||||||
Unrealized gain on derivatives, net | [1] | 668 | |||||||
Balance at Sep. 30, 2018 | 230,229 | (8,875) | 133,803 | (85,758) | 269,399 | ||||
Common Stock, Shares, Outstanding, Ending Balance at Sep. 30, 2018 | 28,483 | ||||||||
Treasury Stock, Shares, Ending Balance at Sep. 30, 2018 | 483 | ||||||||
Cumulative effect of a accounting change | (212) | (212) | |||||||
Balance at Mar. 31, 2018 | 227,561 | (8,505) | 105,432 | (64,871) | 259,617 | ||||
Common Stock, Shares, Outstanding, Beginning Balance at Mar. 31, 2018 | 28,490 | ||||||||
Treasury Stock, Shares, Beginning Balance at Mar. 31, 2018 | 476 | ||||||||
Net income | 15,120 | 15,120 | |||||||
Unrealized gain on derivatives, net | (159) | (159) | |||||||
Currency translation adjustments | (17,421) | (17,421) | |||||||
Issuance of Common Shares ( in shares) | 11 | ||||||||
Issuance of restricted Common Shares ( in treasury shares) | (11) | ||||||||
Repurchased Common Shares for treasury | (406) | (406) | |||||||
Repurchased Common Shares for treasury (in shares) | (18) | ||||||||
Repurchased Common Shares for treasury (in treasury shares) | 18 | ||||||||
Share-based compensation | 1,295 | 1,295 | |||||||
Balance at Jun. 30, 2018 | 228,856 | (8,911) | 120,552 | (82,451) | 258,046 | ||||
Common Stock, Shares, Outstanding, Ending Balance at Jun. 30, 2018 | 28,483 | ||||||||
Treasury Stock, Shares, Ending Balance at Jun. 30, 2018 | 483 | ||||||||
Net income | 13,292 | 13,292 | |||||||
Unrealized gain on derivatives, net | 32 | 32 | [1] | ||||||
Currency translation adjustments | (3,339) | (3,339) | |||||||
Repurchased Common Shares for treasury | 36 | 36 | |||||||
Share-based compensation | 1,373 | 1,373 | |||||||
Balance at Sep. 30, 2018 | 230,229 | (8,875) | 133,803 | (85,758) | 269,399 | ||||
Common Stock, Shares, Outstanding, Ending Balance at Sep. 30, 2018 | 28,483 | ||||||||
Treasury Stock, Shares, Ending Balance at Sep. 30, 2018 | 483 | ||||||||
Cumulative effect of a accounting change | (41) | (41) | |||||||
Balance at Dec. 31, 2018 | 231,647 | (8,880) | 146,251 | (85,752) | $ 283,266 | ||||
Common Stock, Shares, Outstanding, Beginning Balance at Dec. 31, 2018 | 28,488 | 28,488 | |||||||
Treasury Stock, Shares, Beginning Balance at Dec. 31, 2018 | 478 | 478 | |||||||
Net income | 9,657 | $ 9,657 | |||||||
Unrealized gain on derivatives, net | 42 | 42 | |||||||
Currency translation adjustments | (3,804) | (3,804) | |||||||
Issuance of Common Shares ( in shares) | 305 | ||||||||
Issuance of restricted Common Shares ( in treasury shares) | (305) | ||||||||
Repurchased Common Shares for treasury | (1,883) | (1,883) | |||||||
Repurchased Common Shares for treasury (in shares) | (98) | ||||||||
Repurchased Common Shares for treasury (in treasury shares) | 98 | ||||||||
Share-based compensation | 480 | 480 | |||||||
Balance at Mar. 31, 2019 | 232,127 | (10,763) | 155,908 | (89,514) | 287,758 | ||||
Common Stock, Shares, Outstanding, Ending Balance at Mar. 31, 2019 | 28,695 | ||||||||
Treasury Stock, Shares, Ending Balance at Mar. 31, 2019 | 271 | ||||||||
Balance at Dec. 31, 2018 | 231,647 | (8,880) | 146,251 | (85,752) | $ 283,266 | ||||
Common Stock, Shares, Outstanding, Beginning Balance at Dec. 31, 2018 | 28,488 | 28,488 | |||||||
Treasury Stock, Shares, Beginning Balance at Dec. 31, 2018 | 478 | 478 | |||||||
Net income | $ 56,082 | ||||||||
Unrealized gain on derivatives, net | [1] | (196) | |||||||
Balance at Sep. 30, 2019 | 224,251 | (50,836) | 202,333 | (99,168) | $ 276,580 | ||||
Common Stock, Shares, Outstanding, Ending Balance at Sep. 30, 2019 | 27,402 | 27,402 | |||||||
Treasury Stock, Shares, Ending Balance at Sep. 30, 2019 | 1,564 | 1,564 | |||||||
Balance at Mar. 31, 2019 | 232,127 | (10,763) | 155,908 | (89,514) | $ 287,758 | ||||
Common Stock, Shares, Outstanding, Beginning Balance at Mar. 31, 2019 | 28,695 | ||||||||
Treasury Stock, Shares, Beginning Balance at Mar. 31, 2019 | 271 | ||||||||
Net income | 39,764 | 39,764 | |||||||
Unrealized gain on derivatives, net | (112) | (112) | |||||||
Currency translation adjustments | 2,311 | 2,311 | |||||||
Issuance of Common Shares ( in shares) | 31 | ||||||||
Issuance of restricted Common Shares ( in treasury shares) | (31) | ||||||||
Repurchased Common Shares for treasury | 74 | 74 | |||||||
Repurchased Common Shares for treasury (in shares) | (9) | ||||||||
Repurchased Common Shares for treasury (in treasury shares) | 9 | ||||||||
Common Share repurchase program | (10,000) | (40,000) | (50,000) | ||||||
Common Share repurchase program (in shares) | (1,350) | ||||||||
Common Share repurchase program (in treasury shares) | 1,350 | ||||||||
Share-based compensation | 1,704 | 1,704 | |||||||
Balance at Jun. 30, 2019 | 223,831 | (50,689) | 195,672 | (87,315) | 281,499 | ||||
Common Stock, Shares, Outstanding, Ending Balance at Jun. 30, 2019 | 27,367 | ||||||||
Treasury Stock, Shares, Ending Balance at Jun. 30, 2019 | 1,599 | ||||||||
Net income | 6,661 | 6,661 | |||||||
Unrealized gain on derivatives, net | (126) | (126) | [1] | ||||||
Currency translation adjustments | (11,727) | (11,727) | |||||||
Issuance of Common Shares ( in shares) | 62 | ||||||||
Issuance of restricted Common Shares ( in treasury shares) | (62) | ||||||||
Repurchased Common Shares for treasury | (147) | (147) | |||||||
Repurchased Common Shares for treasury (in shares) | (27) | ||||||||
Repurchased Common Shares for treasury (in treasury shares) | 27 | ||||||||
Share-based compensation | 420 | 420 | |||||||
Balance at Sep. 30, 2019 | $ 224,251 | $ (50,836) | $ 202,333 | $ (99,168) | $ 276,580 | ||||
Common Stock, Shares, Outstanding, Ending Balance at Sep. 30, 2019 | 27,402 | 27,402 | |||||||
Treasury Stock, Shares, Ending Balance at Sep. 30, 2019 | 1,564 | 1,564 | |||||||
[1] | Net of tax expense (benefit) of $(34) and $47 for the three months ended September 30, 2019 and 2018, respectively. Net of tax expense (benefit) of $(53) and $218 for the nine months ended September 30, 2019 and 2018, respectively. |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2019 | |
Basis of Presentation [Abstract] | |
Basis of Presentation | (1) Basis of Presentation The accompanying condensed consolidated financial statements have been prepared by Stoneridge, Inc. (the “Company”) without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). The information furnished in the condensed consolidated financial statements includes normal recurring adjustments and reflects all adjustments, which are, in the opinion of management, necessary for a fair presentation of such financial statements. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) have been condensed or omitted pursuant to the SEC’s rules and regulations. The results of operations for the three and nine months ended September 30, 2019 are not necessarily indicative of the results to be expected for the full year. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the notes thereto included in the Company’s 2018 Form 10-K The Company’s investment in Minda Stoneridge Instruments Ltd. (“MSIL”) for the three and nine months ended September 30, 2019 and 2018 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. |
Recently Issued Accounting Stan
Recently Issued Accounting Standards | 9 Months Ended |
Sep. 30, 2019 | |
Recently Issued Accounting Standards [Abstract] | |
Recently Issued Accounting Standards | (2) Recently Issued Accounting Standards Recently Adopted Accounting Standards In January 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“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 related to items in accumulated other comprehensive income (“AOCI”) that the FASB refers to as having been stranded in AOCI. The new guidance was effective for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years. The Company adopted this standard on January 1, 2019, which did not have a material impact on the Company’s condensed consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842)”, which requires 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 was effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The Company adopted this standard as of January 1, 2019 using the modified retrospective approach and elected the transition option to use the effective date January 1, 2019, as the date of initial application. The Company did 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 recognized its cumulative effect transition adjustment as of the effective date. In addition, the Company elected the package of practical expedients permitted under the transition guidance within the new standard. The impact of the adoption resulted in the recognition of right-of-use (“ROU”) assets and lease liabilities on the condensed consolidated balance sheet of $20,618 and $20,856 , respectively, as of January 1, 2019. This standard did not have a material impact on the Company’s condensed consolidated results of operations and cash flows upon adoption. Accounting Standards Not Yet Adopted In August 2018, the FASB issued ASU 2018-15, “Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract.” The guidance in ASU 2018-15 clarifies the accounting for implementation costs in cloud computing arrangements. ASU 2018-15 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2019, and earlier adoption is permitted including adoption in any interim period. The Company is currently evaluating the impact of its pending adoption of ASU 2018-15. The Company will adopt this standard as of January 1, 2020 and it is not expected to have a material impact on the Company’s condensed consolidated financial statements. In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820) – Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement.” The guidance in ASU 2018-13 changes disclosure requirements related to fair value measurements as part of the disclosure framework project. The disclosure framework project aims to improve the effectiveness of disclosures in the notes to the financial statements by focusing on requirements that clearly communicate the most important information to users of the financial statements. This guidance is effective for fiscal years beginning after December 15, 2019, with early adoption permitted. The Company is currently evaluating the impact of its pending adoption of ASU 2018-13. The Company will adopt this standard as of January 1, 2020 and it is not expected to have a material impact on the Company’s condensed 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 it is not expected to have a material impact on the Company’s condensed consolidated financial statements. |
Revenue
Revenue | 9 Months Ended |
Sep. 30, 2019 | |
Revenue [Abstract] | |
Revenue | (3) Revenue 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 condensed 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. Electronics. PST. The following tables disaggregate our revenue by reportable segment and geographical location (1) Control Devices Electronics PST Consolidated Three months ended September 30 2019 2018 2019 2018 2019 2018 2019 2018 Net Sales: North America $ 92,743 $ 97,017 $ 23,073 $ 22,458 $ - $ - $ 115,816 $ 119,475 South America - - - - 16,542 18,864 16,542 18,864 Europe 6,046 4,174 53,588 58,315 - - 59,634 62,489 Asia Pacific 9,901 7,211 1,493 814 - - 11,394 8,025 Total net sales $ 108,690 $ 108,402 $ 78,154 $ 81,587 $ 16,542 $ 18,864 $ 203,386 $ 208,853 Control Devices Electronics PST Consolidated Nine months ended September 30 2019 2018 2019 2018 2019 2018 2019 2018 Net Sales: North America $ 287,529 $ 300,024 $ 70,947 $ 64,765 $ - $ - $ 358,476 $ 364,789 South America - - - - 50,488 59,742 50,488 59,742 Europe 15,914 10,734 185,328 194,270 - - 201,242 205,004 Asia Pacific 29,433 22,957 4,285 2,893 - - 33,718 25,850 Total net sales $ 332,876 $ 333,715 $ 260,560 $ 261,928 $ 50,488 $ 59,742 $ 643,924 $ 655,385 (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 supplier customers are 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. Contract Balances The Company had no material contract assets, contract liabilities or capitalized contract acquisition costs as of September 30, 2019 and December 31, 2018. |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2019 | |
Inventories [Abstract] | |
Inventories | (4) 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 consisted of the following: September 30, December 31, 2019 2018 Raw materials $ 61,387 $ 54,382 Work-in-progress 6,674 4,710 Finished goods 35,536 20,186 Total inventories, net $ 103,597 $ 79,278 Inventory valued using the FIFO method was $90,359 and $64,745 at September 30, 2019 and December 31, 2018, respectively. Inventory valued using the average cost method was $13,238 and $14,533 at September 30, 2019 and December 31, 2018, respectively. |
Financial Instruments and Fair
Financial Instruments and Fair Value Measurements | 9 Months Ended |
Sep. 30, 2019 | |
Financial Instruments and Fair Value Measurements [Abstract] | |
Financial Instruments and Fair Value Measurements | (5) 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 September 30, 2019, 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 Company hedged the Mexican peso currency during the first nine months of 2019 and, during 2018, the Company hedged the euro and Mexican peso currencies. In addition, the Company hedged the U.S. dollar against the Swedish krona and euro on behalf of its European subsidiaries in 2018. These forward contracts were executed to hedge forecasted transactions and have been accounted for as cash flow hedges with the exception of the euro-denominated foreign currency forward contract. As such, the effective portion of the unrealized gain or loss was deferred and reported in the Company’s condensed consolidated balance sheets as a component of accumulated other comprehensive loss. The cash flow hedges were highly effective. The effectiveness of the transactions has been and will be measured on an ongoing basis using regression analysis and forecasted future purchases of the 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 condensed consolidated statement of operations as a component of other income (loss), net. The Company’s foreign currency forward contracts offset a portion of the gains and losses on the underlying foreign currency denominated transactions as follows: Euro-denominated Foreign Currency Forward Contract At September 30, 2019 and December 31, 2018, there were no foreign currency forward contracts entered into as the prior year contract was settled in December 2018. The euro-denominated foreign currency forward contract was not designated as a hedging instrument. The Company recognized a gain of U.S. dollar-denominated Foreign Currency Forward Contracts – Cash Flow Hedges 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 such contracts at September 30, 2019 or December 31, 2018. 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 such contracts at September 30, 2019 or December 31, 2018. Mexican peso-denominated Foreign Currency Forward Contracts – Cash Flow Hedge The Company holds Mexican peso-denominated foreign currency forward contracts with a notional amount at September 30, 2019 of $1,489 which expire ratably on a monthly basis from October 2019 through December 2019, compared to a notional amount of $9,017 at December 31, 2018. The Company evaluated the effectiveness of the Mexican peso-denominated foreign currency forward contracts held as of September 30, 2019 and December 31, 2018 and concluded that the hedges were highly effective. The notional amounts and fair values of derivative instruments in the condensed consolidated balance sheets were as follows: Prepaid expenses Accrued expenses and Notional amounts (A) and other current assets other current liabilities September 30, December 31, September 30, December 31, September 30, December 31, 2019 2018 2019 2018 2019 2018 Derivatives designated as hedging instruments: Cash flow hedges: Forward currency contracts $ 1,489 $ 9,017 $ 121 $ 370 $ - $ - (A) Notional amounts represent the gross contract of the derivatives outstanding in U.S. dollars. Gross amounts recorded for the cash flow hedges in other comprehensive income (loss) and in net income for the three months ended September 30 are as follows: Gain reclassified from Gain (loss) recorded in other other comprehensive income comprehensive income (loss) (loss) into net income (A) 2019 2018 2019 2018 Derivatives designated as cash flow hedges: Forward currency contracts $ (29) $ 637 $ 131 $ 558 Gross amounts recorded for the cash flow hedges in other comprehensive income (loss) and in net income for the nine months ended September 30 are as follows: Gains reclassified from Gain recorded in other other comprehensive income comprehensive income into net income (A) 2019 2018 2019 2018 Derivatives designated as cash flow hedges: Forward currency contracts $ 397 $ 1,819 $ 646 $ 933 (A) Gains reclassified from other comprehensive income (loss) into net income recognized in cost of goods sold (“COGS”) in the Company’s condensed consolidated statements of operations were The net deferred gain of $121 on the cash flow hedge derivatives will be reclassified from other comprehensive income (loss) to the condensed consolidated statements of operations through December 2019. 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. September 30, December 31, 2019 2018 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 $ 121 $ - $ 121 $ - $ 370 Total financial assets carried at fair value $ 121 $ - $ 121 $ - $ 370 Financial liabilities carried at fair value: Earn-out consideration $ 11,178 $ - $ - $ 11,178 $ 18,672 Total financial liabilities carried at fair value $ 11,178 $ - $ - $ 11,178 $ 18,672 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, 2018 $ 8,602 $ 10,070 $ 18,672 Change in fair value - 1,862 1,862 Foreign currency adjustments (128) (754) (882) Earn-out consideration cash payment (8,474) - (8,474) Balance at September 30, 2019 $ - $ 11,178 $ 11,178 Orlaco PST Total Balance at December 31, 2017 $ 8,637 $ 12,109 $ 20,746 Change in fair value 369 1,549 1,918 Foreign currency adjustments (300) (2,362) (2,662) Balance at September 30, 2018 $ 8,706 $ 11,296 $ 20,002 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 earnings before interest, depreciation and amortization (“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 earn-out consideration obligation related to PST is recorded within other long-term liabilities in the condensed consolidated balance sheets as of September 30, 2019 and December 31, 2018. The fair value of the Orlaco earn-out consideration was based on a Monte Carlo simulation utilizing forecasted EBITDA for the 2017 and 2018 earn-out period as well as a growth rate reduced by the market required rate of return. The earn-out consideration obligation related to Orlaco was recorded within other current liabilities in the condensed consolidated balance sheet as of December 31, 2018. The change in fair value of the earn-out considerations are recorded within selling, general and administrative (“SG&A”) expense in the condensed consolidated statements of operations for the three and nine months ended September 30, 2019 and 2018. The earn-out consideration obligation related to Orlaco of $8,474 was paid in March 2019 and recorded in the condensed consolidated statement of cash flows within operating and financing activities in the amounts of $5,080 and $3,394, respectively, for the nine months ended September 30, 2019. The Orlaco earn-out consideration reached the capped amount of €7,500 as of the quarter ended March 31, 2018 due to actual performance exceeding forecasted performance and remained at the capped amount until it was paid out in March 2019. The change in fair value of the earn-out consideration for PST was due to the reduced time from the current period end to the payment date, offset by adverse foreign currency translation. The foreign currency impact for the PST earn-out considerations is included in other (income) expense, net in the condensed consolidated statements of operations. There were no transfers in or out of Level 3 from other levels in the fair value hierarchy for the nine months ended September 30, 2019. |
Share-Based Compensation
Share-Based Compensation | 9 Months Ended |
Sep. 30, 2019 | |
Share-Based Compensation [Abstract] | |
Share-Based Compensation | (6) Share-Based Compensation Compensation expense for share-based compensation arrangements, which is recognized in the condensed consolidated statements of operations as a component of SG&A expenses, was $1,105 and $1,376 for the three months ended September 30, 2019 and 2018, respectively. For the nine months ended September 30, 2019 total share-based compensation was $4,699 compared to $4,214 for the nine months ended September 30, 2018. Total share-based compensation for the nine months ended September 30, 2019 included accelerated expense associated with the retirement of eligible employees of $674 and the nine months ended September 30, 2018 included income for forfeiture of certain grants associated with employee resignations. |
Debt
Debt | 9 Months Ended |
Sep. 30, 2019 | |
Debt [Abstract] | |
Debt | (7) Debt Debt consisted of the following at September 30, 2019 and December 31, 2018: September 30, December 31, Interest rates at 2019 2018 September 30, 2019 Maturity Revolving Credit Facility Credit Facility $ 108,500 $ 96,000 3.07 - 3.12% June 2024 Debt PST short-term obligations 149 989 6.00% December 2019 PST long-term notes 1,063 1,527 7.00% November 2021 Suzhou short-term credit line 2,099 - 4.70% - 5.00 % August 2020 Total debt 3,311 2,516 Less: current portion (2,752) (1,533) Total long-term debt, net $ 559 $ 983 Revolving Credit Facility On September 12, 2014, the Company entered into a Third Amended and Restated Credit Agreement (the “Amended Agreement”). The Amended Agreement provided for a $300,000 revolving credit facility, which replaced the Company’s $100,000 asset-based credit facility and included a letter of credit subfacility, swing line subfacility and multicurrency subfacility. On June 5, 2019, the Company entered into the Fourth Amended and Restated Credit Agreement (the “2019 Credit Facility”). The 2019 Credit Facility provides for a $400,000 senior secured revolving credit facility and it replaced and superseded the Amended Agreement. The 2019 Credit Facility has an accordion feature which allows the Company to increase the availability by up to $150,000 upon the satisfaction of certain conditions and includes a letter of credit subfacility, swing line subfacility and multicurrency subfacility. The 2019 Credit Facility has a termination date of June 5, 2024. In 2019, the Company capitalized $1,342 of deferred financing costs as a result of entering into the 2019 Credit Facility. In connection with the 2019 Credit Facility, the Company wrote off a portion of the previously recorded deferred financing costs of $275 in interest expense, net during the nine months ended September 30, 2019. Borrowings under the 2019 Credit Facility bear interest at either the Base Rate or the LIBOR rate, at the Company’s option, plus the applicable margin as set forth in the 2019 Credit Facility. The 2019 Credit Facility contains certain financial covenants that require the Company to maintain less than a maximum leverage ratio and more than a minimum interest coverage ratio. The 2019 Credit Facility contains customary affirmative covenants and representations. The 2019 Credit Facility also contains customary negative covenants, which, among other things, are subject to certain exceptions, including restrictions on (i) indebtedness, (ii) liens, (iii) liquidations, mergers, consolidations and acquisitions, (iv) disposition of assets or subsidiaries, (v) affiliate transactions, (vi) creation or ownership of certain subsidiaries, partnerships and joint ventures, (vii) continuation of or change in business, (viii) restricted payments, (ix) prepayment of subordinated and junior lien indebtedness, (x) restrictions in agreements on dividends, intercompany loans and granting liens on the collateral, (xi) loans and investments, (xii) sale and leaseback transactions, (xiii) changes in organizational documents and fiscal year and (xiv) transactions with respect to bonding subsidiaries. The 2019 Credit Facility contains customary events of default, subject to customary thresholds and exceptions, including, among other things, (i) non-payment of principal and non-payment of interest and fees, (ii) a material inaccuracy of a representation or warranty at the time made, (iii) a failure to comply with any covenant, subject to customary grace periods in the case of certain affirmative covenants, (iv) cross default of other debt, final judgments and other adverse orders in excess of $30,000, (v) any loan document shall cease to be a legal, valid and binding agreement, (vi) certain uninsured losses or proceedings against assets with a value in excess of $30,000, (vii) ERISA events, (viii) a change of control, or (ix) bankruptcy or insolvency proceedings. Borrowings outstanding on the 2019 Credit Facility and the Amended Agreement as applicable, were $108,500 and $96,000 at September 30, 2019 and December 31, 2018, respectively. The Company was in compliance with all credit facility covenants at September 30, 2019 and December 31, 2018. The Company also has outstanding letters of credit of $1,815 at both September 30, 2019 and December 31, 2018. Debt PST maintains short-term obligations and long-term notes used for working capital purposes which have fixed or variable interest rates. The weighted-average interest rates of short term and long-term debt of PST at September 30, 2019 was 6.0% and 7.0%. Depending on the specific note, interest is payable either monthly or annually. Principal repayments on PST debt at September 30, 2019 are as follows: $653 from October 2019 through September 2020, $120 from October 2020 through December 2020 and $439 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 $2,032 and $2,259, at September 30, 2019 and December 31, 2018, respectively. At September 30, 2019 and December 31, 2018, there was no balance outstanding on this overdraft credit line. The Company’s wholly-owned subsidiary located in Suzhou, China, has two credit lines (the “Suzhou credit line”) which allow up to a maximum borrowing level of 60,000 Chinese yuan, or $8,394 at September 30, 2019. At September 30, 2019 there was $2,099 in borrowing outstanding on the Suzhou credit line with a weighted-average interest rate of 4.80% . The Suzhou credit line is included on the condensed consolidated balance sheet within current portion of debt. At December 31, 2018, there was The Company was in compliance with all debt covenants at September 30, 2019 and December 31, 2018. |
Leases
Leases | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Leases | (8) Leases The Company has various cancelable and noncancelable leased assets within all segments, which include certain properties, vehicles and equipment of which are all classified as operating leases. Payments for these leases are generally fixed; however, several of our leases are composed of variable lease payments including index-based payments or inflation-based payments based on a Consumer Price Index (“CPI”) or other escalators. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. Under Leases (Topic 842), the Company determines an arrangement is a lease when we have the right to control the use of identified property, plant or equipment for a period of time in exchange for consideration. Other than the leases that we have already identified, we are not aware of any material leases that have not yet commenced. For leases that have a calculated lease term of 12 months or less and do not include an option to purchase the underlying asset which we are reasonably certain to exercise, the Company has made the policy election to not apply the recognition requirements in Leases (Topic 842). For these short-term leases, the Company recognizes the lease payments in profit or loss on a straight-line basis over the lease term and variable lease payments in the period in which the obligation for those payments is incurred. For the leases identified, ROU assets and lease liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit rate, the Company used the calculated incremental borrowing rate based on the information available at the implementation date, and going forward at the commencement date, in determining the present value of lease payments. The Company will use the implicit rate when readily determinable. The ROU asset includes the carrying amount of the lease liability, plus (minus) any prepaid (accrued) lease payments, less the unamortized balance of lease incentives received. The Company’s lease terms may include options to extend or terminate the lease and such options are included in the lease term when it is reasonably certain that the Company will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. Lease expenses are recognized within COGS, SG&A and design and development (“D&D”) costs in the condensed consolidated statements of operations. The Company has made the policy election to account for lease and non-lease components as a single lease component for all of its leases. As a result of the Company’s election to apply the modified retrospective transition method at the effective date of the standard, information prior to January 1, 2019 has not been restated and continues to be reported under the accounting standards in effect for the period (ASC Topic 840). The components of lease expense are as follows: Three months ended Nine months ended September 30, 2019 September 30, 2019 Operating lease cost $ 1,345 $ 4,241 Short-term lease cost 114 415 Variable lease cost 99 279 Total lease cost $ 1,558 $ 4,935 Balance Sheet information related to leases is as follows: As of September 30, 2019 Assets: Operating lease right-of-use assets $ 20,899 Liabilities: Operating lease current liability, included in other current liabilities 4,188 Operating lease long-term liability 17,059 Total leased liabilities $ 21,247 Maturities of operating lease liabilities are as follows: As of September 30, 2019 Year ending December 31, 2019 (1) $ 1,310 2020 4,680 2021 4,068 2022 3,115 2023 3,062 Thereafter 9,881 Total future minimum lease payments $ 26,116 Less: imputed interest (4,869) Total lease liabilities $ 21,247 (1) For the remaining three months Weighted-average remaining lease term and discount rate is as follows: As of September 30, 2019 Weighted-average remaining lease term (in years) Operating leases 6.93 Weighted-average discount rate Operating leases 5.77 % Other information: Nine months ended September 30, 2019 Operating cash flows: Cash paid related to operating lease obligations $ 4,265 Non-cash activity: Right-of-use assets obtained in exchange for operating lease obligations $ 5,327 |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | (9) Earnings Per Share Basic earnings per share was computed by dividing net income by the weighted-average number of Common Shares outstanding for each respective period. Diluted earnings per share was calculated by dividing net income by the weighted-average of all potentially dilutive Common Shares that were outstanding during the periods presented. Weighted-average Common Shares outstanding used in calculating basic and diluted earnings per share were as follows: Three months ended Nine months ended September 30, September 30, 2019 2018 2019 2018 Basic weighted-average Common Shares outstanding 27,369,824 28,452,807 27,928,760 28,383,843 Effect of dilutive shares 425,687 612,239 496,484 689,257 Diluted weighted-average Common Shares outstanding 27,795,511 29,065,046 28,425,244 29,073,100 There were 578,966 and 626,500 performance-based right to receive Common Shares outstanding at September 30, 2019 and 2018, respectively. The right to receive Common Shares are included in the computation of diluted earnings per share based on the number of Common Shares that would be issuable if the end of the quarter were the end of the contingency period. |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Loss by Component | 9 Months Ended |
Sep. 30, 2019 | |
Changes in Accumulated Other Comprehensive Loss by Component [Abstract] | |
Changes in Accumulated Other Comprehensive Loss by Component | (10) Equity and Accumulated Other Comprehensive Loss Common Share Repurchase On October 26, 2018, the Company’s Board of Directors authorized the Company to repurchase up to $50,000 of Common Shares. Thereafter, on May 7, 2019, the Company entered into a Master Confirmation (the “Master Confirmation”) and a Supplemental Confirmation, together with the Master Confirmation, the Accelerated Share Repurchase Agreement (“ASR Agreement”), with Citibank N.A. (the “Bank”) to purchase Company Common Shares for a payment of $50,000 (the “Prepayment Amount”). Under the terms of the ASR Agreement, on May 7, 2019, the Company paid the Prepayment Amount to the Bank and received on May 8, 2019 an initial delivery of 1,349,528 Company Common Shares, which is approximately 80% of the total number of Company Common Shares expected to be repurchased under the ASR Agreement based on the closing price of the Company’s Common Shares on May 7, 2019. These Common Shares became treasury shares and were recorded as a At final settlement, the Bank may be required to deliver additional Common Shares to the Company, or, under certain circumstances, the Company may be required to deliver Common Shares or may elect to make a cash payment to the Bank, based generally on the average of the daily volume-weighted average prices of the Company’s Common Shares during a term set forth in the ASR Agreement. The ASR Agreement contains provisions customary for agreements of this type, including provisions for adjustments to the transaction terms, the circumstances generally under which the ASR Agreement may be accelerated, extended or terminated early by the Bank and various acknowledgments, representations and warranties made by the parties to one another. The ASR Agreement expires on May 8, 2020. Accumulated Other Comprehensive Loss Changes in accumulated other comprehensive loss for the three months ended September 30, 2019 and 2018 were as follows: Foreign Unrealized currency gain (loss) translation on derivatives Total Balance at July 1, 2019 $ (87,537) $ 222 $ (87,315) Other comprehensive loss before reclassifications (11,727) (23) (11,750) Amounts reclassified from accumulated other comprehensive loss - (103) (103) Net other comprehensive loss, net of tax (11,727) (126) (11,853) Balance at September 30, 2019 $ (99,264) $ 96 $ (99,168) Balance at July 1, 2018 $ (82,944) $ 493 $ (82,451) Other comprehensive (loss) income before reclassifications (3,339) 258 (3,081) Amounts reclassified from accumulated other comprehensive loss - (226) (226) Net other comprehensive (loss) income, net of tax (3,339) 32 (3,307) Balance at September 30, 2018 $ (86,283) $ 525 $ (85,758) Changes in accumulated other comprehensive loss for the nine months ended September 30, 2019 and 2018 were as follows: Foreign Unrealized currency gain (loss) translation on derivatives Total Balance at January 1, 2019 $ (86,044) $ 292 $ (85,752) Other comprehensive (loss) income before reclassifications (13,220) 313 (12,907) Amounts reclassified from accumulated other comprehensive loss - (509) (509) Net other comprehensive loss, net of tax (13,220) (196) (13,416) Balance at September 30, 2019 (99,264) $ 96 $ (99,168) Balance at January 1, 2018 $ (69,417) $ (143) $ (69,560) Other comprehensive (loss) income before reclassifications (16,866) 1,372 (15,494) Amounts reclassified from accumulated other comprehensive loss - (704) (704) Net other comprehensive (loss) income, net of tax (16,866) 668 (16,198) Balance at September 30, 2018 $ (86,283) $ 525 $ (85,758) |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2019 | |
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 the site and engaged an environmental engineering consultant to develop a remediation and monitoring plan for the site. Soil remediation at the site was completed during the year ended December 31, 2010. A remedial action plan was approved by the Florida Department of Environmental Protection and groundwater remediation began in the fourth quarter of 2015. During the three and nine months ended September 30, 2019 and 2018, environmental remediation costs incurred were immaterial. At September 30, 2019 and December 31, 2018, the Company accrued a remaining undiscounted liability of $106 and $111, respectively, related to future remediation costs which were recorded as a component of accrued expenses and other current liabilities in the condensed consolidated balance sheets. 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 and related property in December 2011, the liability to remediate the site contamination remains the responsibility of the Company. Due to the ongoing site remediation, the 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$31,200 ($7,500) and R$29,700 ($7,600) at September 30, 2019 and December 31, 2018, 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 pursued 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 three months and nine months ended September 30, 2019 and 2018, respectively. There were no loss recoveries and insurance gain contingencies recognized in the three and nine months ended September 30, 2019 and 2018 related to the damage of property, plant and equipment included within SG&A expense. 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 collected in January 2018. Cash proceeds related to the damage of inventory and incremental costs were $241 for the nine months ended September 30, 2018 and are included in cash flows from operating activities. Cash proceeds related to the damage of property, plant and equipment of $1,403 for the nine months ended September 30, 2018, were included in cash flows from investing activities. Cash proceeds received during the three and nine months ended September 30, 2019 were immaterial. Product Warranty and Recall Amounts accrued for product warranty and recall claims are established based on the Company’s best estimate of the amounts necessary to settle existing and future claims on products sold as of the balance sheet dates. These accruals are based on several factors including past experience, production changes, industry developments and various other considerations including insurance coverage. The Company can provide no assurances that it will not experience material claims or that it will not incur significant costs to defend or settle such claims beyond the amounts accrued or beyond what the Company may recover from its suppliers. The current portion of product warranty and recall is included as a component of accrued expenses and other current liabilities in the condensed consolidated balance sheets. Product warranty and recall included $3,071 and $3,283 of a long-term liability at September 30, 2019 and December 31, 2018, respectively, which is included as a component of other long-term liabilities in the condensed consolidated balance sheets. The following provides a reconciliation of changes in product warranty and recall liability: Nine months ended September 30, 2019 2018 Product warranty and recall at beginning of period $ 10,494 $ 9,979 Accruals for warranties established during period 5,049 4,207 Aggregate changes in pre-existing liabilities due to claim developments 1,124 573 Settlements made during the period (5,310) (4,259) Foreign currency translation (515) (562) Product warranty and recall at end of period $ 10,842 $ 9,938 Brazilian Indirect Tax In March 2017, the Supreme Court of Brazil issued a decision concluding that a certain state value added tax should not be included in the calculation of federal gross receipts taxes. The decision reduced PST’s gross receipts tax prospectively and, potentially, retrospectively. In April 2019, the Company received judicial notification that the Superior Judicial Court of Brazil rendered a favorable decision on PST’s case granting the Company the right to recover, through offset of federal tax liabilities, amounts collected by the government from June 2010 to February 2017. Based on the Company’s determination that these tax credits will be used prior to expiration, we recorded a pre-tax benefit of $6,473 as a reduction to SG&A expense which is inclusive of related interest income of $2,392, net of applicable professional fees of $990 in the nine months ended September 30, 2019. Timing of realization of these recoveries is dependent upon the timing of administrative approvals and generation of federal tax liabilities eligible for offset. The Brazilian tax authorities have sought clarification before the Supreme Court of Brazil (in a leading case involving another taxpayer) of certain matters that could affect the rights of Brazilian taxpayers regarding these credits, and a hearing is scheduled for December 2019. If the Brazilian tax authorities challenge our rights to these credits, we may become subject to new litigation that could impact the amount ultimately realized by PST. |
Business Realignment and Restru
Business Realignment and Restructuring | 9 Months Ended |
Sep. 30, 2019 | |
Business Realignment and Restructuring [Abstract] | |
Business Realignment and Restructuring | (12) Business Realignment and Restructuring On January 10, 2019, the Company committed to a restructuring plan that will result in the closure of the Canton, Massachusetts facility (“Canton Facility”) which is expected by March 31, 2020 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. The estimated costs for the Canton Restructuring include employee severance and termination costs, contract terminations costs, professional fees and other related costs. The Company recognized expense of $3,607 and $9,275, respectively, for the three and nine months ended September 30, 2019 as a result of these actions for employee termination benefits and other restructuring related costs. For the three months ended September 30, 2019 severance and other restructuring related costs of $2,567, $287 and $753 were recognized in COGS, SG&A and D&D, respectively, in the condensed consolidated statement of operations. For the nine months ended September 30, 2019 severance and other related restructuring costs of $6,173, $762 and $2,340 were recognized in COGS, SG&A and D&D, respectively, in the condensed consolidated statement of operations. The estimated additional cost of the Canton Facility restructuring plan, that will impact the Control Devices segment, is between $1,900 and $3,000 and will be incurred through 2020. The expenses for the 2019 Canton Restructuring that relate to the Control Devices reportable segment include the following: Accrual as of 2019 Charge Utilization Accrual as of January 1, 2019 to Expense Cash Non-Cash September 30, 2019 Employee termination benefits $ - $ 6,967 $ (1,371) $ - $ 5,596 Other related costs - 2,308 (2,226) - - Total $ - $ 9,275 $ (3,597) $ - $ 5,596 In the fourth quarter of 2018, the Company undertook restructuring actions for the Electronics segment affecting the European Aftermarket business and China operations. The Company recognized expense of $157 and $469, respectively, for the three and nine months ended September 30, 2019 as a result of these actions for severance, contract termination costs, accelerated depreciation of fixed assets and other related costs. Electronics segment restructuring costs were recognized in SG&A in the condensed consolidated statement of operations for the three and nine months ended September 30, 2019. The Company expects to incur approximately $600 of additional restructuring costs related to these actions through 2020. The expenses for the 2019 restructuring activities that relate to the Electronics reportable segment include the following: Accrual as of 2019 Charge to Utilization Accrual as of January 1, 2019 Expense (Income) Cash Non-Cash September 30, 2019 Employee termination benefits $ 520 $ (30) $ (442) $ 3 $ 51 Accelerated depreciation - 289 - (289) - Contract termination costs 17 24 (41) - - Other related costs 119 186 (305) - - Total $ 656 $ 469 $ (788) $ (286) $ 51 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: Three months ended Nine months ended September 30, September 30, 2019 2018 2019 2018 Control Devices (A) $ (37) $ 32 $ 512 $ 160 Electronics (B) - (80) - 215 PST (C) - 35 - 354 Unallocated Corporate (D) 392 - 1,005 - Total business realignment charges $ 355 $ (13) $ 1,517 $ 729 (A) Severance benefit for the three months ended September 30, 2019 related to COGS and D&D were $(27) and $(10) , respectively. Severance costs for the nine months ended September 30, 2019 related to SG&A were $512 . Severance costs for the nine months ended September 30, 2018 related to D&D were $128 . Severance costs for the three and nine months ended September 30, 2018 related to SG&A were $32 . (B) Severance costs (benefit) for the three and nine months ended September 30, 2018 related to SG&A were $(80) and $215 , respectively. (C) Severance costs for the three and nine months ended September 30, 2018 related to SG&A were $19 and $312 , respectively. Severance costs for the three and nine months ended September 30, 2018 related to COGS were $16 and $42 , respectively. (D) Severance costs for the three and nine months ended September 30, 2019 related to SG&A were $392 and $1,005 . Business realignment charges classified by statement of operations line item were as follows: Three months ended Nine months ended September 30, September 30, 2019 2018 2019 2018 Cost of goods sold $ (27) $ 16 $ - $ 42 Selling, general and administrative 392 (29) 1,517 559 Design and development (10) - - 128 Total business realignment charges $ 355 $ (13) $ 1,517 $ 729 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2019 | |
Income Taxes [Abstract] | |
Income Taxes | (13) Income Taxes The Company recognized income tax expense of $1,450 and $3,467 for U.S. federal, state and foreign income taxes for the three months ended September 30, 2019 and 2018, respectively. The decrease in income tax expense for the three months ended September 30, 2019 compared to the same period for 2018 was primarily related to reduced pre-tax earnings from operations. The effective tax rate decreased to 17.9% in the third quarter of 2019 from 20.7% in the third quarter of 2018 primarily due to the impact of certain tax incentives, which did not impact the third quarter of 2018. The Company recognized income tax expense of $12,351 and $10,520 for U.S. federal, state and foreign income taxes for the nine months ended September 30, 2019 and 2018, respectively. The increase in income tax expense for the nine months ended September 30, 2019 compared to the same period for 2018 was primarily related to the sale of Non-core Products on April 1, 2019. The effective tax rate decreased to The Company has concluded that it is reasonably possible that its future provision for income taxes may be significantly impacted by changes to valuation allowance in certain countries within the following twelve months. |
Segment Reporting
Segment Reporting | 9 Months Ended |
Sep. 30, 2019 | |
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, “Summary of Significant Accounting Policies” of the Company’s 2018 Form 10-K 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: Three months ended Nine months ended September 30, September 30, 2019 2018 2019 2018 Net Sales: Control Devices $ 108,690 $ 108,402 $ 332,876 $ 333,715 Inter-segment sales 1,185 1,556 5,124 6,218 Control Devices net sales 109,875 109,958 338,000 339,933 Electronics 78,154 81,587 260,560 261,928 Inter-segment sales 8,867 9,067 27,914 29,310 Electronics net sales 87,021 90,654 288,474 291,238 PST 16,542 18,864 50,488 59,742 Inter-segment sales - - 6 2 PST net sales 16,542 18,864 50,494 59,744 Eliminations (10,052) (10,623) (33,044) (35,530) Total net sales $ 203,386 $ 208,853 $ 643,924 $ 655,385 Operating Income (Loss): Control Devices $ 9,767 $ 16,297 $ 66,082 $ 51,336 Electronics 7,661 8,951 24,247 25,107 PST (451) 668 6,633 1,553 Unallocated Corporate (A) (7,654) (7,604) (26,754) (23,656) Total operating income $ 9,323 $ 18,312 $ 70,208 $ 54,340 Depreciation and Amortization: Control Devices $ 3,310 $ 3,070 $ 9,601 $ 8,762 Electronics 2,708 2,213 7,615 6,756 PST 1,571 1,583 4,791 5,828 Unallocated Corporate 297 200 726 596 Total depreciation and amortization (B) $ 7,886 $ 7,066 $ 22,733 $ 21,942 Interest (Income) Expense, net: Control Devices $ 189 $ 19 $ 566 $ 56 Electronics 79 32 198 89 PST 69 230 118 762 Unallocated Corporate 812 874 2,271 2,772 Total interest expense, net $ 1,149 $ 1,155 $ 3,153 $ 3,679 Capital Expenditures: Control Devices $ 3,175 $ 3,938 $ 10,709 $ 12,996 Electronics 5,473 725 12,567 4,892 PST 1,243 522 2,867 2,477 Unallocated Corporate (C) 683 786 1,910 2,451 Total capital expenditures $ 10,574 $ 5,971 $ 28,053 $ 22,816 September 30, December 31, 2019 2018 Total Assets: Control Devices $ 194,016 $ 175,708 Electronics 276,763 265,838 PST 85,739 81,002 Corporate (C) 359,351 359,837 Eliminations (321,865) (322,866) Total assets $ 594,004 $ 559,519 The following tables present net sales and long-term assets for each of the geographic areas in which the Company operates: Three months ended Nine months ended September 30, September 30, 2019 2018 2019 2018 Net Sales: North America $ 115,816 $ 119,475 $ 358,476 $ 364,789 South America 16,542 18,864 50,488 59,742 Europe and Other 71,028 70,514 234,960 230,854 Total net sales $ 203,386 $ 208,853 $ 643,924 $ 655,385 September 30, December 31, 2019 2018 Long-term Assets: North America $ 92,575 $ 86,763 South America 48,174 45,408 Europe and Other 122,013 107,171 Total long-term assets $ 262,762 $ 239,342 (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 corporate headquarter building, leased assets, information technology assets, equity investments and investments in subsidiaries. |
Investments
Investments | 9 Months Ended |
Sep. 30, 2019 | |
Investments [Abstract] | |
Investments | (15) Investments Minda Stoneridge Instruments Ltd. The Company has a 49% equity interest in Minda Stoneridge Instruments Ltd. (“MSIL”), a company based in India that manufactures electronics, instrumentation equipment and sensors primarily 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 condensed consolidated balance sheets, was $12,351 and $11,288 at September 30, 2019 and December 31, 2018, respectively. Equity in earnings of MSIL included in the condensed consolidated statements of operations was $318 and $249, for the three months ended September 30, 2019 and 2018, respectively. Equity in earnings of MSIL included in the condensed consolidated statements of operations was $1,230 and $1,435, for the nine months ended September 30, 2019 and 2018, respectively. PST Eletrônica Ltda. The Company had a 74% controlling interest in PST from December 31, 2011 through May 15, 2017. On May 16, 2017, the Company acquired the remaining 26% noncontrolling interest in PST. As part of the acquisition agreement, the Company will be required to pay additional earn-out consideration, which is not capped, based on PST’s financial performance in either 2020 or 2021. See Note 5 for the fair value and foreign currency adjustments of the earn-out consideration for the current and prior periods. PST has dividends payable to former noncontrolling interest holders of Brazilian real (“R$”) 23,871 ($5,745) and R$23,204 ($5,980) as of September 30, 2019 and December 31, 2018, respectively. The dividends payable balance includes R$668 ($162) and R$766 ($189) in monetary correction for the nine months ended September 30, 2019 and 2018, 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 condensed 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 which is accounted for in accordance with ASU 2016-01, “Financial Instruments – Overall (Subtopic 825-10)”. This investment does not have a readily determinable fair value and is measured at cost, less impairments, adjusted for observable price changes in orderly transactions for identical or similar investments of the same issuer. The Company’s to the Autotech fund during the nine months ended September 30, 2019. The Autotech investment recorded in investments and other long-term assets in the condensed consolidated balance sheets was |
Disposal of Non-Core Products
Disposal of Non-Core Products | 9 Months Ended |
Sep. 30, 2019 | |
Disposal of Non-Core Products [Abstract] | |
Disposal of Non-Core Products | (16) Disposal of Non-Core Products On April 1, 2019, the Company entered into an Asset Purchase Agreement (the “APA”) by and among the Company, the Company’s wholly owned subsidiary, Stoneridge Control Devices, Inc. (“SCD”), and Standard Motor Products, Inc. (“SMP”). On the same day pursuant to the APA, in exchange for product lines and assets related to certain non-core switches and connectors (the “Non-core Products”). the Company and SMP also entered into certain ancillary agreements, including a transition services agreement, a contract manufacturing agreement and a supply agreement, pursuant to which the Company will provide and be compensated for certain manufacturing, transitional, and administrative and support services to SMP on a short-term basis. The products related to the Non-core Products were manufactured in Juarez, Mexico and Canton, Massachusetts, and include ball switches, ignition switches, rotary switches, courtesy lamps, toggle switches, headlamp switches and other related components. On April 1, 2019, the Company’s Control Devices segment recognized net sales and costs of goods sold of for the sale of fixed assets, intellectual property and customer lists associated with the Non-core Products less transaction costs. During the three months ended March 31, 2019, the Company recognized transaction costs associated with the disposal of Control Devices’ Non-core Products of The Company received $675 and $1,350 for services provided pursuant to the transition services agreement which were recognized as a reduction in SG&A for the three and nine months ended September 30, 2019, respectively. Pursuant to the contract manufacturing agreement, the Company recognized sales and operating income for the production of Non-core Products of $10,770 and $1,072 for the three months ended September 30, 2019, respectively, and $19,824 and $1,072 for the nine months ended September 30, 2019, respectively. The Company also received $170 for reimbursement of retention costs from SMP pursuant to the contract manufacturing agreement which was recognized as a reduction to SG&A for both the three and nine months ended September 30, 2019. Non-core Product net sales and operating income, including sales to SMP pursuant to the contract manufacturing agreement were $10,770 and $1,072 for the three months ended September 30, 2019, respectively, and $11,071 and $2,334, for the three months ended September 30, 2018, respectively. Non-core Products net sales and operating income, including sales to SMP pursuant to the contract manufacturing agreement were $35,080 and $4,445 for the nine months ended September 30, 2019, respectively, and $34,200 and $7,059 for the nine months ended September 30, 2018, respectively. |
Revenue (Tables)
Revenue (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Revenue [Abstract] | |
Revenue by Segment and Geographical Location | The following tables disaggregate our revenue by reportable segment and geographical location (1) Control Devices Electronics PST Consolidated Three months ended September 30 2019 2018 2019 2018 2019 2018 2019 2018 Net Sales: North America $ 92,743 $ 97,017 $ 23,073 $ 22,458 $ - $ - $ 115,816 $ 119,475 South America - - - - 16,542 18,864 16,542 18,864 Europe 6,046 4,174 53,588 58,315 - - 59,634 62,489 Asia Pacific 9,901 7,211 1,493 814 - - 11,394 8,025 Total net sales $ 108,690 $ 108,402 $ 78,154 $ 81,587 $ 16,542 $ 18,864 $ 203,386 $ 208,853 Control Devices Electronics PST Consolidated Nine months ended September 30 2019 2018 2019 2018 2019 2018 2019 2018 Net Sales: North America $ 287,529 $ 300,024 $ 70,947 $ 64,765 $ - $ - $ 358,476 $ 364,789 South America - - - - 50,488 59,742 50,488 59,742 Europe 15,914 10,734 185,328 194,270 - - 201,242 205,004 Asia Pacific 29,433 22,957 4,285 2,893 - - 33,718 25,850 Total net sales $ 332,876 $ 333,715 $ 260,560 $ 261,928 $ 50,488 $ 59,742 $ 643,924 $ 655,385 (1) Company sales based on geographic location are where the sale originates not where the customer is located . |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Inventories [Abstract] | |
Schedule of Inventory, Current | September 30, December 31, 2019 2018 Raw materials $ 61,387 $ 54,382 Work-in-progress 6,674 4,710 Finished goods 35,536 20,186 Total inventories, net $ 103,597 $ 79,278 |
Financial Instruments and Fai_2
Financial Instruments and Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Financial Instruments and Fair Value Measurements [Abstract] | |
Notional Amounts and Fair Values of Derivative Instruments in the Consolidated Balance | The notional amounts and fair values of derivative instruments in the condensed consolidated balance sheets were as follows: Prepaid expenses Accrued expenses and Notional amounts (A) and other current assets other current liabilities September 30, December 31, September 30, December 31, September 30, December 31, 2019 2018 2019 2018 2019 2018 Derivatives designated as hedging instruments: Cash flow hedges: Forward currency contracts $ 1,489 $ 9,017 $ 121 $ 370 $ - $ - (A) Notional amounts represent the gross contract of the derivatives outstanding in U.S. dollars. |
Amounts Recorded for the Cash Flow Hedges in Other Comprehensive Income (Loss) in Shareholders' Equity and in Net Income | Gross amounts recorded for the cash flow hedges in other comprehensive income (loss) and in net income for the three months ended September 30 are as follows: Gain reclassified from Gain (loss) recorded in other other comprehensive income comprehensive income (loss) (loss) into net income (A) 2019 2018 2019 2018 Derivatives designated as cash flow hedges: Forward currency contracts $ (29) $ 637 $ 131 $ 558 Gross amounts recorded for the cash flow hedges in other comprehensive income (loss) and in net income for the nine months ended September 30 are as follows: Gains reclassified from Gain recorded in other other comprehensive income comprehensive income into net income (A) 2019 2018 2019 2018 Derivatives designated as cash flow hedges: Forward currency contracts $ 397 $ 1,819 $ 646 $ 933 (A) Gains reclassified from other comprehensive income (loss) into net income recognized in cost of goods sold (“COGS”) in the Company’s condensed consolidated statements of operations were |
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. September 30, December 31, 2019 2018 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 $ 121 $ - $ 121 $ - $ 370 Total financial assets carried at fair value $ 121 $ - $ 121 $ - $ 370 Financial liabilities carried at fair value: Earn-out consideration $ 11,178 $ - $ - $ 11,178 $ 18,672 Total financial liabilities carried at fair value $ 11,178 $ - $ - $ 11,178 $ 18,672 |
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, 2018 $ 8,602 $ 10,070 $ 18,672 Change in fair value - 1,862 1,862 Foreign currency adjustments (128) (754) (882) Earn-out consideration cash payment (8,474) - (8,474) Balance at September 30, 2019 $ - $ 11,178 $ 11,178 Orlaco PST Total Balance at December 31, 2017 $ 8,637 $ 12,109 $ 20,746 Change in fair value 369 1,549 1,918 Foreign currency adjustments (300) (2,362) (2,662) Balance at September 30, 2018 $ 8,706 $ 11,296 $ 20,002 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Debt [Abstract] | |
Schedule of Debt | Debt consisted of the following at September 30, 2019 and December 31, 2018: September 30, December 31, Interest rates at 2019 2018 September 30, 2019 Maturity Revolving Credit Facility Credit Facility $ 108,500 $ 96,000 3.07 - 3.12% June 2024 Debt PST short-term obligations 149 989 6.00% December 2019 PST long-term notes 1,063 1,527 7.00% November 2021 Suzhou short-term credit line 2,099 - 4.70% - 5.00 % August 2020 Total debt 3,311 2,516 Less: current portion (2,752) (1,533) Total long-term debt, net $ 559 $ 983 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Schedule of components of lease expense | The components of lease expense are as follows: Three months ended Nine months ended September 30, 2019 September 30, 2019 Operating lease cost $ 1,345 $ 4,241 Short-term lease cost 114 415 Variable lease cost 99 279 Total lease cost $ 1,558 $ 4,935 |
Schedule of supplemental balance sheet information | Balance Sheet information related to leases is as follows: As of September 30, 2019 Assets: Operating lease right-of-use assets $ 20,899 Liabilities: Operating lease current liability, included in other current liabilities 4,188 Operating lease long-term liability 17,059 Total leased liabilities $ 21,247 |
Schedule of maturities of lease liabilities | Maturities of operating lease liabilities are as follows: As of September 30, 2019 Year ending December 31, 2019 (1) $ 1,310 2020 4,680 2021 4,068 2022 3,115 2023 3,062 Thereafter 9,881 Total future minimum lease payments $ 26,116 Less: imputed interest (4,869) Total lease liabilities $ 21,247 (1) For the remaining three months |
Schedule of weighted-average remaining lease term, discount rate and other information | Weighted-average remaining lease term and discount rate is as follows: As of September 30, 2019 Weighted-average remaining lease term (in years) Operating leases 6.93 Weighted-average discount rate Operating leases 5.77 % |
Schedule of other information related to leases | Other information: Nine months ended September 30, 2019 Operating cash flows: Cash paid related to operating lease obligations $ 4,265 Non-cash activity: Right-of-use assets obtained in exchange for operating lease obligations $ 5,327 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Weighted-Average Number of Shares | Weighted-average Common Shares outstanding used in calculating basic and diluted earnings per share were as follows: Three months ended Nine months ended September 30, September 30, 2019 2018 2019 2018 Basic weighted-average Common Shares outstanding 27,369,824 28,452,807 27,928,760 28,383,843 Effect of dilutive shares 425,687 612,239 496,484 689,257 Diluted weighted-average Common Shares outstanding 27,795,511 29,065,046 28,425,244 29,073,100 |
Changes in Accumulated Other _2
Changes in Accumulated Other Comprehensive Loss by Component (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Changes in Accumulated Other Comprehensive Loss by Component [Abstract] | |
Changes in Accumulated Other Comprehensive Loss by Component | Changes in accumulated other comprehensive loss for the three months ended September 30, 2019 and 2018 were as follows: Foreign Unrealized currency gain (loss) translation on derivatives Total Balance at July 1, 2019 $ (87,537) $ 222 $ (87,315) Other comprehensive loss before reclassifications (11,727) (23) (11,750) Amounts reclassified from accumulated other comprehensive loss - (103) (103) Net other comprehensive loss, net of tax (11,727) (126) (11,853) Balance at September 30, 2019 $ (99,264) $ 96 $ (99,168) Balance at July 1, 2018 $ (82,944) $ 493 $ (82,451) Other comprehensive (loss) income before reclassifications (3,339) 258 (3,081) Amounts reclassified from accumulated other comprehensive loss - (226) (226) Net other comprehensive (loss) income, net of tax (3,339) 32 (3,307) Balance at September 30, 2018 $ (86,283) $ 525 $ (85,758) Changes in accumulated other comprehensive loss for the nine months ended September 30, 2019 and 2018 were as follows: Foreign Unrealized currency gain (loss) translation on derivatives Total Balance at January 1, 2019 $ (86,044) $ 292 $ (85,752) Other comprehensive (loss) income before reclassifications (13,220) 313 (12,907) Amounts reclassified from accumulated other comprehensive loss - (509) (509) Net other comprehensive loss, net of tax (13,220) (196) (13,416) Balance at September 30, 2019 (99,264) $ 96 $ (99,168) Balance at January 1, 2018 $ (69,417) $ (143) $ (69,560) Other comprehensive (loss) income before reclassifications (16,866) 1,372 (15,494) Amounts reclassified from accumulated other comprehensive loss - (704) (704) Net other comprehensive (loss) income, net of tax (16,866) 668 (16,198) Balance at September 30, 2018 $ (86,283) $ 525 $ (85,758) |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies [Abstract] | |
Schedule of Product Warranty and Recall Liability | The following provides a reconciliation of changes in product warranty and recall liability: Nine months ended September 30, 2019 2018 Product warranty and recall at beginning of period $ 10,494 $ 9,979 Accruals for warranties established during period 5,049 4,207 Aggregate changes in pre-existing liabilities due to claim developments 1,124 573 Settlements made during the period (5,310) (4,259) Foreign currency translation (515) (562) Product warranty and recall at end of period $ 10,842 $ 9,938 |
Business Realignment and Rest_2
Business Realignment and Restructuring (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Schedule of Restructuring and Related Costs | Business realignment charges by reportable segment were as follows: Three months ended Nine months ended September 30, September 30, 2019 2018 2019 2018 Control Devices (A) $ (37) $ 32 $ 512 $ 160 Electronics (B) - (80) - 215 PST (C) - 35 - 354 Unallocated Corporate (D) 392 - 1,005 - Total business realignment charges $ 355 $ (13) $ 1,517 $ 729 (A) Severance benefit for the three months ended September 30, 2019 related to COGS and D&D were $(27) and $(10) , respectively. Severance costs for the nine months ended September 30, 2019 related to SG&A were $512 . Severance costs for the nine months ended September 30, 2018 related to D&D were $128 . Severance costs for the three and nine months ended September 30, 2018 related to SG&A were $32 . (B) Severance costs (benefit) for the three and nine months ended September 30, 2018 related to SG&A were $(80) and $215 , respectively. (C) Severance costs for the three and nine months ended September 30, 2018 related to SG&A were $19 and $312 , respectively. Severance costs for the three and nine months ended September 30, 2018 related to COGS were $16 and $42 , respectively. (D) Severance costs for the three and nine months ended September 30, 2019 related to SG&A were $392 and $1,005 . |
Schedule of Business Realignment Charges Classified by Statement of Operations | Business realignment charges classified by statement of operations line item were as follows: Three months ended Nine months ended September 30, September 30, 2019 2018 2019 2018 Cost of goods sold $ (27) $ 16 $ - $ 42 Selling, general and administrative 392 (29) 1,517 559 Design and development (10) - - 128 Total business realignment charges $ 355 $ (13) $ 1,517 $ 729 |
Electronics [Member] | |
Schedule of Restructuring and Related Costs | Accrual as of 2019 Charge to Utilization Accrual as of January 1, 2019 Expense (Income) Cash Non-Cash September 30, 2019 Employee termination benefits $ 520 $ (30) $ (442) $ 3 $ 51 Accelerated depreciation - 289 - (289) - Contract termination costs 17 24 (41) - - Other related costs 119 186 (305) - - Total $ 656 $ 469 $ (788) $ (286) $ 51 |
Control Devices [Member] | Canton Facility Restructuring Plan [Member] | |
Schedule of Restructuring and Related Costs | Accrual as of 2019 Charge Utilization Accrual as of January 1, 2019 to Expense Cash Non-Cash September 30, 2019 Employee termination benefits $ - $ 6,967 $ (1,371) $ - $ 5,596 Other related costs - 2,308 (2,226) - - Total $ - $ 9,275 $ (3,597) $ - $ 5,596 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | A summary of financial information by reportable segment is as follows: Three months ended Nine months ended September 30, September 30, 2019 2018 2019 2018 Net Sales: Control Devices $ 108,690 $ 108,402 $ 332,876 $ 333,715 Inter-segment sales 1,185 1,556 5,124 6,218 Control Devices net sales 109,875 109,958 338,000 339,933 Electronics 78,154 81,587 260,560 261,928 Inter-segment sales 8,867 9,067 27,914 29,310 Electronics net sales 87,021 90,654 288,474 291,238 PST 16,542 18,864 50,488 59,742 Inter-segment sales - - 6 2 PST net sales 16,542 18,864 50,494 59,744 Eliminations (10,052) (10,623) (33,044) (35,530) Total net sales $ 203,386 $ 208,853 $ 643,924 $ 655,385 Operating Income (Loss): Control Devices $ 9,767 $ 16,297 $ 66,082 $ 51,336 Electronics 7,661 8,951 24,247 25,107 PST (451) 668 6,633 1,553 Unallocated Corporate (A) (7,654) (7,604) (26,754) (23,656) Total operating income $ 9,323 $ 18,312 $ 70,208 $ 54,340 Depreciation and Amortization: Control Devices $ 3,310 $ 3,070 $ 9,601 $ 8,762 Electronics 2,708 2,213 7,615 6,756 PST 1,571 1,583 4,791 5,828 Unallocated Corporate 297 200 726 596 Total depreciation and amortization (B) $ 7,886 $ 7,066 $ 22,733 $ 21,942 Interest (Income) Expense, net: Control Devices $ 189 $ 19 $ 566 $ 56 Electronics 79 32 198 89 PST 69 230 118 762 Unallocated Corporate 812 874 2,271 2,772 Total interest expense, net $ 1,149 $ 1,155 $ 3,153 $ 3,679 Capital Expenditures: Control Devices $ 3,175 $ 3,938 $ 10,709 $ 12,996 Electronics 5,473 725 12,567 4,892 PST 1,243 522 2,867 2,477 Unallocated Corporate (C) 683 786 1,910 2,451 Total capital expenditures $ 10,574 $ 5,971 $ 28,053 $ 22,816 September 30, December 31, 2019 2018 Total Assets: Control Devices $ 194,016 $ 175,708 Electronics 276,763 265,838 PST 85,739 81,002 Corporate (C) 359,351 359,837 Eliminations (321,865) (322,866) Total assets $ 594,004 $ 559,519 |
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas | The following tables present net sales and long-term assets for each of the geographic areas in which the Company operates: Three months ended Nine months ended September 30, September 30, 2019 2018 2019 2018 Net Sales: North America $ 115,816 $ 119,475 $ 358,476 $ 364,789 South America 16,542 18,864 50,488 59,742 Europe and Other 71,028 70,514 234,960 230,854 Total net sales $ 203,386 $ 208,853 $ 643,924 $ 655,385 September 30, December 31, 2019 2018 Long-term Assets: North America $ 92,575 $ 86,763 South America 48,174 45,408 Europe and Other 122,013 107,171 Total long-term assets $ 262,762 $ 239,342 (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 corporate headquarter building, leased assets, information technology assets, equity investments and investments in subsidiaries. |
Basis of Presentation (Narrativ
Basis of Presentation (Narrative) (Details) | 64 Months Ended | |||
May 15, 2017 | Sep. 30, 2019 | Sep. 30, 2018 | May 16, 2017 | |
PST Eletronica Ltda [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Percentage ownership in consolidated subsidiary | 74.00% | |||
Percentage of additional noncontrolling interest acquired | 26.00% | |||
MSIL | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Ownership percentage | 49.00% | 49.00% |
Recently Issued Accounting St_2
Recently Issued Accounting Standards (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Jan. 01, 2019 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Right of use assets | $ 20,899 | |
Lease liabilities | $ 21,247 | |
Adjustment | ASU 2016-02 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Right of use assets | $ 20,618 | |
Lease liabilities | $ 20,856 |
Revenue (Narrative) (Details)
Revenue (Narrative) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Revenue [Abstract] | ||
Contract assets | $ 0 | $ 0 |
Contract liabilities | 0 | 0 |
Capitalized contract acquisition costs | $ 0 | $ 0 |
Revenue (Revenue by Segment and
Revenue (Revenue by Segment and Geographical Location) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Total net sales | $ 203,386 | $ 208,853 | $ 643,924 | $ 655,385 |
North America [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 115,816 | 119,475 | 358,476 | 364,789 |
South America [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 16,542 | 18,864 | 50,488 | 59,742 |
Europe [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 59,634 | 62,489 | 201,242 | 205,004 |
Asia Pacific [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 11,394 | 8,025 | 33,718 | 25,850 |
Control Devices [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 108,690 | 108,402 | 332,876 | 333,715 |
Control Devices [Member] | North America [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 92,743 | 97,017 | 287,529 | 300,024 |
Control Devices [Member] | Europe [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 6,046 | 4,174 | 15,914 | 10,734 |
Control Devices [Member] | Asia Pacific [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 9,901 | 7,211 | 29,433 | 22,957 |
Electronics [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 78,154 | 81,587 | 260,560 | 261,928 |
Electronics [Member] | North America [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 23,073 | 22,458 | 70,947 | 64,765 |
Electronics [Member] | Europe [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 53,588 | 58,315 | 185,328 | 194,270 |
Electronics [Member] | Asia Pacific [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 1,493 | 814 | 4,285 | 2,893 |
PST [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 16,542 | 18,864 | 50,488 | 59,742 |
PST [Member] | South America [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | $ 16,542 | $ 18,864 | $ 50,488 | $ 59,742 |
Inventories (Narrative) (Detail
Inventories (Narrative) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Inventories [Abstract] | ||
Inventory amount, FIFO | $ 90,359 | $ 64,745 |
Inventory amount, weighted average cost | $ 13,238 | $ 14,533 |
Inventories (Schedule of Invent
Inventories (Schedule of Inventories) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Inventories [Abstract] | ||
Raw materials | $ 61,387 | $ 54,382 |
Work-in-progress | 6,674 | 4,710 |
Finished goods | 35,536 | 20,186 |
Total inventories, net | $ 103,597 | $ 79,278 |
Financial Instruments and Fai_3
Financial Instruments and Fair Value Measurements (Narrative) (Details) € in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Mar. 31, 2019USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Dec. 31, 2018USD ($) | Mar. 31, 2018EUR (€) | |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||||||
Payment of earn-out consideration paid within operating activities | $ 1,862 | $ 1,918 | ||||
Earn-out consideration cash payment within financing activities | 3,394 | |||||
Earn-out consideration, operating and financing activities | $ 8,474 | |||||
Transfers in or out of Level 3 | 0 | |||||
Euro-Denominated Foreign Currency Forward Contracts [Member] | ||||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||||||
Gain (loss) on derivative instruments held for trading purposes, net | $ 10 | $ 52 | ||||
Cash Flow Hedging [Member] | ||||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||||||
(Gain) loss from cash flow hedge derivatives to be reclassified | (121) | |||||
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 | ||||
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] | Forward Currency Contracts [Member] | ||||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||||||
Notional amounts | 1,489 | 9,017 | ||||
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 | 1,489 | $ 9,017 | ||||
Fair Value, Inputs, Level 2 [Member] | ||||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||||||
Financial assets carried at fair value | 121 | |||||
Forward currency asset contracts | 121 | |||||
Orlaco [Member] | ||||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||||||
Earn-out consideration | € | € 7,500 | |||||
Payment of earn-out consideration paid within operating activities | 5,080 | |||||
Earn-out consideration cash payment within financing activities | $ 3,394 |
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] - Cash Flow Hedging [Member] - Designated as Hedging Instrument [Member] - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Derivatives, Fair Value [Line Items] | ||
Notional amounts | $ 1,489 | $ 9,017 |
Other Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Cash flow hedges , other derivative assets | 121 | 370 |
Other Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Cash flow hedges, other derivative, liabilities |
Financial Instruments and Fai_5
Financial Instruments and Fair Value Measurements (Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss)) (Details) - Designated as Hedging Instrument [Member] - Forward Currency Contracts [Member] - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Derivatives designated as cash flow hedges: | ||||
Gain (loss) recorded in other comprehensive income | $ (29) | $ 637 | $ 397 | $ 1,819 |
Gain (loss) reclassified from other comprehensive income into net income | 131 | 558 | 646 | 933 |
Cost of Goods Sold [Member] | ||||
Derivatives designated as cash flow hedges: | ||||
Gain (loss) reclassified from other comprehensive income into net income | 131 | 495 | 521 | 834 |
Design and Development Expense [Member] | ||||
Derivatives designated as cash flow hedges: | ||||
Gain (loss) reclassified from other comprehensive income into net income | $ 0 | $ 63 | $ 125 | $ 99 |
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 | Sep. 30, 2019 | Dec. 31, 2018 |
Fair Value, Recurring [Member] | ||
Financial assets carried at fair value: | ||
Forward currency asset contracts | $ 121 | $ 370 |
Total financial assets carried at fair value | 121 | 370 |
Financial liabilities carried at fair value: | ||
Earn-out consideration | 11,178 | 18,672 |
Total financial liabilities carried at fair value | 11,178 | $ 18,672 |
Fair Value, Inputs, Level 2 [Member] | ||
Financial assets carried at fair value: | ||
Forward currency asset contracts | 121 | |
Total financial assets carried at fair value | 121 | |
Fair Value, Inputs, Level 3 [Member] | ||
Financial liabilities carried at fair value: | ||
Earn-out consideration | 11,178 | |
Total financial liabilities carried at fair value | $ 11,178 |
Financial Instruments and Fai_7
Financial Instruments and Fair Value Measurements (Summary of the change in fair value of the Level 3 financial liabilities related to earn-out consideration) (Details) - Earnout Consideration [Member] - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Financial liability, Beginning balance | $ 18,672 | $ 20,746 |
Change in fair value | 1,862 | 1,918 |
Foreign currency adjustments | (882) | (2,662) |
Earn-out consideration cash payment | (8,474) | |
Financial liability, Ending balance | 11,178 | 20,002 |
Orlaco [Member] | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Financial liability, Beginning balance | 8,602 | 8,637 |
Change in fair value | 369 | |
Foreign currency adjustments | (128) | (300) |
Earn-out consideration cash payment | (8,474) | |
Financial liability, Ending balance | 8,706 | |
PST Eletronica Ltda [Member] | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Financial liability, Beginning balance | 10,070 | 12,109 |
Change in fair value | 1,862 | 1,549 |
Foreign currency adjustments | (754) | (2,362) |
Financial liability, Ending balance | $ 11,178 | $ 11,296 |
Share-Based Compensation (Narra
Share-Based Compensation (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense, accelerated | $ 674 | |||
Selling, General and Administrative Expenses [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | $ 1,105 | $ 1,376 | $ 4,699 | $ 4,214 |
Debt (Narrative) (Details)
Debt (Narrative) (Details) ¥ in Thousands, kr in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | |||||||||
Sep. 30, 2019USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2019SEK (kr) | Sep. 30, 2019USD ($) | Sep. 30, 2019CNY (¥) | Jun. 30, 2019USD ($) | Jun. 05, 2019USD ($) | Dec. 31, 2018SEK (kr) | Dec. 31, 2018USD ($) | Sep. 12, 2014USD ($) | Nov. 02, 2007USD ($) | |
Debt Instrument [Line Items] | |||||||||||
Borrowings outstanding | $ 108,500 | $ 96,000 | |||||||||
Revolving Credit Facility [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Capitalized deferred financing costs | $ 1,342 | ||||||||||
Line of credit facility, maximum borrowing capacity | $ 400,000 | $ 300,000 | |||||||||
Increase in maximum borrowing capacity of credit facility | $ 150 | ||||||||||
Borrowings outstanding | 108,500 | 96,000 | |||||||||
Write off of deferred debt issuance cost | $ 275 | ||||||||||
Debt instrument covenant default of other debt maximum amount | $ 30,000 | ||||||||||
Debt instrument covenant uninsured asset losses maximum amount | $ 30,000 | ||||||||||
Revolving Credit Facility [Member] | Maximum [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Long-term debt, weighted average interest rate | 3.12% | 3.12% | 3.12% | ||||||||
Revolving Credit Facility [Member] | Minimum [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Long-term debt, weighted average interest rate | 3.07% | 3.07% | 3.07% | ||||||||
Asset-Based Credit Facility [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Line of credit facility, maximum borrowing capacity | $ 100,000 | ||||||||||
Suzhou Short-Term Credit Line [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Line of credit facility, maximum borrowing capacity | $ 8,394 | ¥ 60,000 | |||||||||
Borrowings outstanding | $ 2,099 | 0 | |||||||||
Outstanding credit lines weighted-average interest rate | 4.80% | 4.80% | 4.80% | ||||||||
Suzhou Short-Term Credit Line [Member] | Maximum [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Outstanding credit lines interest rate | 5.00% | ||||||||||
Suzhou Short-Term Credit Line [Member] | Minimum [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Outstanding credit lines interest rate | 4.70% | ||||||||||
Letter of Credit [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Outstanding letters of credit | $ 1,815 | 1,815 | |||||||||
Credit Facility [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Credit Facility covenant compliance | The Company was in compliance with all credit facility covenants at September 30, 2019 and December 31, 2018 | ||||||||||
PST Debt [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Notes covenant compliance | The Company was in compliance with all debt covenants at September 30, 2019 and December 31, 2018 | ||||||||||
PST Eletronica Ltda [Member] | Term Loan [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
2019 | 653 | ||||||||||
2020 | 120 | ||||||||||
2021 | $ 439 | ||||||||||
PST Eletronica Ltda [Member] | PST Long-Term Notes [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Long-term debt, weighted average interest rate | 7.00% | 7.00% | 7.00% | ||||||||
PST Eletronica Ltda [Member] | PST Short-Term Notes [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Short-term debt, weighted average interest rate | 6.00% | 6.00% | 6.00% | ||||||||
Electronics [Member] | Line of Credit [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Line of credit facility, maximum borrowing capacity | kr 20,000 | $ 2,032 | kr 20,000 | 2,259 | |||||||
Borrowings outstanding | 0 | 0 | |||||||||
PST Short-Term Obligations [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Short-term debt | $ 149 | $ 989 |
Debt (Schedule of Debt) (Detail
Debt (Schedule of Debt) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | ||
Revolving credit facility | $ 108,500 | $ 96,000 |
Debt: | ||
Total debt | 3,311 | 2,516 |
Less: current portion | (2,752) | (1,533) |
Total long-term debt, net | 559 | 983 |
Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Revolving credit facility | $ 108,500 | 96,000 |
Debt: | ||
Debt, maturity | June 2024 | |
Suzhou Short-Term Credit Line [Member] | ||
Debt Instrument [Line Items] | ||
Revolving credit facility | $ 2,099 | 0 |
Debt: | ||
Debt, maturity | August 2020 | |
Maximum [Member] | Revolving Credit Facility [Member] | ||
Debt: | ||
Long-term debt, weighted average interest rate | 3.12% | |
Maximum [Member] | Suzhou Short-Term Credit Line [Member] | ||
Debt: | ||
Outstanding credit lines interest rate | 5.00% | |
Minimum [Member] | Revolving Credit Facility [Member] | ||
Debt: | ||
Long-term debt, weighted average interest rate | 3.07% | |
Minimum [Member] | Suzhou Short-Term Credit Line [Member] | ||
Debt: | ||
Outstanding credit lines interest rate | 4.70% | |
PST Short-Term Obligations [Member] | ||
Debt Instrument [Line Items] | ||
Short-term debt | $ 149 | 989 |
Debt: | ||
Debt, maturity | December 2019 | |
Interest rate | 6.00% | |
PST Long-Term Notes [Member] | ||
Debt: | ||
Long-term debt | $ 1,063 | $ 1,527 |
Debt, maturity | November 2021 | |
Interest rate | 7.00% |
Leases - Narrative (Details)
Leases - Narrative (Details) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Option to extend | true |
Option to terminate | true |
Leases - Components of lease ex
Leases - Components of lease expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Lease Cost | ||
Operating lease cost | $ 1,345 | $ 4,241 |
Short-term lease cost | 114 | 415 |
Variable lease cost | 99 | 279 |
Total lease cost | $ 1,558 | $ 4,935 |
Leases - Supplemental balance s
Leases - Supplemental balance sheet information (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Assets [Abstract] | ||
Operating lease right of use asset | $ 20,899 | |
Liabilities [Abstract] | ||
Operating lease current liability, included in other current liabilities | 4,188 | |
Long-term lease liabilities | 17,059 | |
Total lease liabilities | $ 21,247 |
Leases - Maturities of lease li
Leases - Maturities of lease liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Maturities of lease liabilities: | ||
2019 | $ 1,310 | |
2020 | 4,680 | |
2021 | 4,068 | |
2022 | 3,115 | |
2023 | 3,062 | |
Thereafter | 9,881 | |
Total undiscounted cash flows | 26,116 | |
Present values | ||
Present values | (4,869) | |
Short-term lease liabilities | 4,188 | |
Long-term lease liabilities | 17,059 | |
Total lease liabilities | $ 21,247 |
Leases - Weighted-average remai
Leases - Weighted-average remaining lease term and discount rate (Details) | Sep. 30, 2019 |
Leases [Abstract] | |
Operating leases - Weighted-average remaining lease term (in years) | 6 years 11 months 4 days |
Operating leases - Weighted-average discount rate | 5.77% |
Leases - Other information (Det
Leases - Other information (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Leases [Abstract] | |
Cash paid related to operating lease obligations | $ 4,265 |
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 5,327 |
Earnings Per Share (Narrative)
Earnings Per Share (Narrative) (Details) - shares | Sep. 30, 2019 | Sep. 30, 2018 |
Performance Based Right to Receive Common Shares [Member] | ||
Common shares, non-vested | 578,966 | 626,500 |
Earnings Per Share (Weighted Av
Earnings Per Share (Weighted Average Shares Outstanding Used in Calculating Basic and Diluted Net Income Per Share) (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Earnings Per Share [Abstract] | ||||
Basic weighted-average Common Shares outstanding | 27,369,824 | 28,452,807 | 27,928,760 | 28,383,843 |
Effect of dilutive shares | 425,687 | 612,239 | 496,484 | 689,257 |
Diluted weighted-average Common Shares outstanding | 27,795,511 | 29,065,046 | 28,425,244 | 29,073,100 |
Changes in Accumulated Other _3
Changes in Accumulated Other Comprehensive Loss by Component (Narrative) (Details) $ in Thousands | May 07, 2019USD ($)shares | Sep. 30, 2019USD ($) | Oct. 28, 2018USD ($) |
Stock Repurchase Program, Authorized Amount | $ 50,000 | ||
Payments for repurchase of common stock | $ 50,000 | ||
Accelerated Share Repurchase Agreement [Member] | |||
Payments for repurchase of common stock | $ 50,000 | ||
Stock repurchased and retired during period, shares | shares | 1,349,528 | ||
Percentage of expected shares repurchased | 80 | ||
Treasury stock, retired, cost method, amount | $ 40,000 | ||
Equity increase (decrease) related to shares repurchase program. | $ 10,000 |
Changes in Accumulated Other _4
Changes in Accumulated Other Comprehensive Loss by Component (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |||||
Changes in Accumulated Other Comprehensive Loss by Component [Abstract] | ||||||||||||||
Foreign currency translation, Beginning balance | $ (87,537) | $ (86,044) | $ (82,944) | $ (69,417) | $ (86,044) | $ (69,417) | ||||||||
Foreign currency translation, Other comprehensive income (loss) before reclassifications | (11,727) | (3,339) | (13,220) | (16,866) | ||||||||||
Foreign currency translation, Net other comprehensive income (loss), net of tax | (11,727) | (3,339) | (13,220) | (16,866) | ||||||||||
Foreign currency translation, Ending balance | (99,264) | $ (87,537) | (86,283) | $ (82,944) | (99,264) | (86,283) | ||||||||
Unrealized gain (loss) on on derivatives, Beginning balance | 222 | 292 | 493 | (143) | 292 | (143) | ||||||||
Unrealized gain (loss) on on derivatives, Other comprehensive income (loss) before reclassifications | (23) | 258 | 313 | 1,372 | ||||||||||
Unrealized gain (loss) on on derivatives, Amounts reclassified from accumulated other comprehensive loss | (103) | (226) | (509) | (704) | ||||||||||
Unrealized gain (loss) on on derivatives, Net other comprehensive income (loss), net of tax | (126) | [1] | (112) | $ 42 | 32 | [1] | (159) | $ 795 | (196) | [1] | 668 | [1] | ||
Unrealized gain (loss) on on derivatives, Ending balance | 96 | 222 | 525 | 493 | 96 | 525 | ||||||||
Total, Other comprehensive income (loss) before reclassifications | (11,750) | (3,081) | (12,907) | (15,494) | ||||||||||
Total, Amounts reclassified from accumulated other comprehensive loss | (103) | (226) | (509) | (704) | ||||||||||
Total, Net other comprehensive income (loss), net of tax | (11,853) | (3,307) | (13,416) | (16,198) | ||||||||||
Accumulated other comprehensive income (loss), net of tax, total | $ (99,168) | $ (87,315) | $ (85,758) | $ (82,451) | $ (99,168) | $ (85,758) | $ (85,752) | $ (69,560) | ||||||
[1] | Net of tax expense (benefit) of $(34) and $47 for the three months ended September 30, 2019 and 2018, respectively. Net of tax expense (benefit) of $(53) and $218 for the nine months ended September 30, 2019 and 2018, respectively. |
Commitments and Contingencies_2
Commitments and Contingencies (Narrative) (Details) R$ in Thousands | 3 Months Ended | 9 Months Ended | 64 Months Ended | |||||||
Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | May 15, 2017 | Sep. 30, 2019BRL (R$) | Sep. 30, 2019USD ($) | Dec. 31, 2018BRL (R$) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Short-term Debt [Line Items] | ||||||||||
Environmental remediation accrued undiscounted liability | $ 106,000 | $ 111,000 | ||||||||
Loss recoveries and insurance gain contingencies | $ 1,644,000 | |||||||||
Product warranty and recall accrual | 3,071,000 | 3,283,000 | ||||||||
Gain on Business Interruption Insurance Recovery | $ 0 | $ 0 | $ 0 | $ 0 | ||||||
Cash proceeds related to damaged inventory and incremental costs | 0 | 241,000 | ||||||||
Cash proceeds within cash flows from investing activities | 1,403,000 | |||||||||
Insurance recoveries | $ 0 | $ 0 | 0 | $ 0 | ||||||
Selling, General and Administrative Expenses [Member] | ||||||||||
Short-term Debt [Line Items] | ||||||||||
Gain on litigation | 6,473,000 | |||||||||
Interest Income [Member] | ||||||||||
Short-term Debt [Line Items] | ||||||||||
Gain on litigation | 2,392,000 | |||||||||
Professional Fees [Member] | ||||||||||
Short-term Debt [Line Items] | ||||||||||
Gain on litigation | $ 990,000 | |||||||||
Letter of Credit [Member] | ||||||||||
Short-term Debt [Line Items] | ||||||||||
Line of credit | 1,489,000 | |||||||||
PST Eletronica Ltda [Member] | ||||||||||
Short-term Debt [Line Items] | ||||||||||
Percentage ownership in consolidated subsidiary | 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$ 31200 | $ 7,500,000 | R$ 29700 | $ 7,600,000 |
Commitments and Contingencies_3
Commitments and Contingencies (Reconciliation of Changes in Product Warranty and Recall Liability) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Commitments and Contingencies [Abstract] | ||
Product warranty and recall at beginning of period | $ 10,494 | $ 9,979 |
Accruals for warranties established during period | 5,049 | 4,207 |
Aggregate changes in pre-existing liabilities due to claim developments | 1,124 | 573 |
Settlements made during the period | (5,310) | (4,259) |
Foreign currency translation | (515) | (562) |
Product warranty and recall at end of period | $ 10,842 | $ 9,938 |
Business Realignment and Rest_3
Business Realignment and Restructuring (Narrative) (Details) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019USD ($) | Sep. 30, 2019USD ($) | |
Electronics [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Charges | $ 157 | $ 469 |
Additional restructuring costs | 600 | 600 |
Control Devices [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Charges | 3,607 | 9,275 |
Canton Facility Restructuring Plan [Member] | Control Devices [Member] | Minimum [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Estimated total cost | 1,900 | 1,900 |
Canton Facility Restructuring Plan [Member] | Control Devices [Member] | Maximum [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Estimated total cost | 3,000 | 3,000 |
Canton Facility Restructuring [Member] | Canton Facility Restructuring Plan [Member] | Control Devices [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Charges | 9,275 | |
Selling, General and Administrative Expenses [Member] | Canton Facility Restructuring Plan [Member] | Canton Facility [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Charges | 287 | 762 |
Cost of Goods Sold [Member] | Canton Facility Restructuring Plan [Member] | Canton Facility [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Charges | 2,567 | 6,173 |
Design and Development Expense [Member] | Canton Facility Restructuring Plan [Member] | Canton Facility [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Charges | $ 753 | $ 2,340 |
Business Realignment and Rest_4
Business Realignment and Restructuring (Schedule of Restructuring and Related Costs) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Electronics [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Reserve, Beginning Balance | $ 656 | |
Charge to expense | $ 157 | 469 |
Cash payments | (788) | |
Utilization, Non-Cash | (286) | |
Restructuring Reserve, Ending Balance | 51 | 51 |
Control Devices [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Charge to expense | 3,607 | 9,275 |
Employee Termination [Member] | Electronics [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Reserve, Beginning Balance | 520 | |
Charge to expense | (30) | |
Cash payments | (442) | |
Utilization, Non-Cash | 3 | |
Restructuring Reserve, Ending Balance | 51 | 51 |
Employee Termination [Member] | Control Devices [Member] | Canton Facility Restructuring Plan [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Charge to expense | 6,967 | |
Cash payments | (1,371) | |
Utilization, Non-Cash | ||
Restructuring Reserve, Ending Balance | 5,596 | 5,596 |
Canton Facility Restructuring [Member] | Control Devices [Member] | Canton Facility Restructuring Plan [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Charge to expense | 9,275 | |
Cash payments | (3,597) | |
Utilization, Non-Cash | ||
Restructuring Reserve, Ending Balance | $ 5,596 | 5,596 |
Accelerated Depreciation [Member] | Electronics [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Charge to expense | 289 | |
Utilization, Non-Cash | (289) | |
Contract Termination [Member] | Electronics [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Reserve, Beginning Balance | 17 | |
Charge to expense | 24 | |
Cash payments | (41) | |
Other Restructuring [Member] | Electronics [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Reserve, Beginning Balance | 119 | |
Charge to expense | 186 | |
Cash payments | (305) | |
Other Restructuring [Member] | Control Devices [Member] | Canton Facility Restructuring Plan [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Charge to expense | 2,308 | |
Cash payments | (2,226) | |
Utilization, Non-Cash |
Business Realignment and Rest_5
Business Realignment and Restructuring (Schedule of Business Realignment Charges Classified by Statement of Operations) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Restructuring Cost and Reserve [Line Items] | ||||
Total business realignment charges | $ 355 | $ (13) | $ 1,517 | $ 729 |
Cost of Goods Sold [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total business realignment charges | (27) | 16 | 42 | |
Selling, General and Administrative Expenses [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total business realignment charges | 392 | (29) | 1,517 | 559 |
Design and Development Expense [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total business realignment charges | (10) | 128 | ||
Control Devices [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total business realignment charges | (37) | 32 | 512 | 160 |
Control Devices [Member] | Cost of Goods Sold [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Severance costs | (27) | |||
Control Devices [Member] | Selling, General and Administrative Expenses [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Severance costs | 32 | 512 | 32 | |
Control Devices [Member] | Design and Development [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Severance costs | 128 | |||
Control Devices [Member] | Design and Development Expense [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Severance costs | (10) | |||
Electronics [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total business realignment charges | (80) | 215 | ||
Electronics [Member] | Selling, General and Administrative Expenses [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Severance costs | (80) | 215 | ||
PST Segment [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total business realignment charges | 35 | 354 | ||
PST Segment [Member] | Cost of Goods Sold [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Severance costs | 16 | 42 | ||
PST Segment [Member] | Selling, General and Administrative Expenses [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Severance costs | $ 19 | $ 312 | ||
Unallocated Corporate [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total business realignment charges | 392 | 1,005 | ||
Unallocated Corporate [Member] | Selling, General and Administrative Expenses [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Severance costs | $ 392 | $ 1,005 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income Taxes [Abstract] | ||||
Income tax expense (benefit) on operations | $ 1,450 | $ 3,467 | $ 12,351 | $ 10,520 |
Effective income tax rate | 17.90% | 20.70% | 18.00% | 20.10% |
Segment Reporting (Narrative) (
Segment Reporting (Narrative) (Details) | 9 Months Ended |
Sep. 30, 2019segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 3 |
Segment Reporting (Schedule of
Segment Reporting (Schedule of Segment Reporting Information, by Segment) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Net Sales: | |||||
Net sales | $ 203,386 | $ 208,853 | $ 643,924 | $ 655,385 | |
Operating Income (Loss) | |||||
Total operating income (loss) | 9,323 | 18,312 | 70,208 | 54,340 | |
Total income before income taxes | 8,111 | 16,759 | 68,433 | 52,312 | |
Depreciation and Amortization: | |||||
Total depreciation and amortization | 7,886 | 7,066 | 22,733 | 21,942 | |
Interest Expense, net: | |||||
Total interest expense, net | 1,149 | 1,155 | 3,153 | 3,679 | |
Interest Expense, net: | |||||
Total interest expense, net | 1,149 | 1,155 | 3,153 | 3,679 | |
Capital Expenditures: | |||||
Capital expenditures | 10,574 | 5,971 | 28,053 | 22,816 | |
Long-Lived Assets | 262,762 | 262,762 | $ 239,342 | ||
Total Assets: | |||||
Total assets | 594,004 | 594,004 | 559,519 | ||
Intersegment Eliminations [Member] | |||||
Net Sales: | |||||
Net sales | (10,052) | (10,623) | (33,044) | (35,530) | |
Total Assets: | |||||
Total assets | (321,865) | (321,865) | (322,866) | ||
Control Devices [Member] | |||||
Net Sales: | |||||
Net sales | 108,690 | 108,402 | 332,876 | 333,715 | |
Operating Income (Loss) | |||||
Total operating income (loss) | 9,767 | 16,297 | 66,082 | 51,336 | |
Depreciation and Amortization: | |||||
Total depreciation and amortization | 3,310 | 3,070 | 9,601 | 8,762 | |
Interest Expense, net: | |||||
Total interest expense, net | 189 | 19 | 566 | 56 | |
Capital Expenditures: | |||||
Capital expenditures | 3,175 | 3,938 | 10,709 | 12,996 | |
Total Assets: | |||||
Total assets | 194,016 | 194,016 | 175,708 | ||
Control Devices [Member] | Operating Segments [Member] | |||||
Net Sales: | |||||
Net sales | 109,875 | 109,958 | 338,000 | 339,933 | |
Control Devices [Member] | Inter-Segment Sales [Member] | |||||
Net Sales: | |||||
Net sales | 1,185 | 1,556 | 5,124 | 6,218 | |
Electronics [Member] | |||||
Net Sales: | |||||
Net sales | 78,154 | 81,587 | 260,560 | 261,928 | |
Operating Income (Loss) | |||||
Total operating income (loss) | 7,661 | 8,951 | 24,247 | 25,107 | |
Depreciation and Amortization: | |||||
Total depreciation and amortization | 2,708 | 2,213 | 7,615 | 6,756 | |
Interest Expense, net: | |||||
Total interest expense, net | 79 | 32 | 198 | 89 | |
Capital Expenditures: | |||||
Capital expenditures | 5,473 | 725 | 12,567 | 4,892 | |
Total Assets: | |||||
Total assets | 276,763 | 276,763 | 265,838 | ||
Electronics [Member] | Operating Segments [Member] | |||||
Net Sales: | |||||
Net sales | 87,021 | 90,654 | 288,474 | 291,238 | |
Electronics [Member] | Inter-Segment Sales [Member] | |||||
Net Sales: | |||||
Net sales | 8,867 | 9,067 | 27,914 | 29,310 | |
PST [Member] | |||||
Net Sales: | |||||
Net sales | 16,542 | 18,864 | 50,488 | 59,742 | |
Operating Income (Loss) | |||||
Total operating income (loss) | (451) | 668 | 6,633 | 1,553 | |
Depreciation and Amortization: | |||||
Total depreciation and amortization | 1,571 | 1,583 | 4,791 | 5,828 | |
Interest Expense, net: | |||||
Total interest expense, net | 69 | 230 | 118 | 762 | |
Capital Expenditures: | |||||
Capital expenditures | 1,243 | 522 | 2,867 | 2,477 | |
Total Assets: | |||||
Total assets | 85,739 | 85,739 | 81,002 | ||
PST [Member] | Operating Segments [Member] | |||||
Net Sales: | |||||
Net sales | 16,542 | 18,864 | 50,494 | 59,744 | |
PST [Member] | Inter-Segment Sales [Member] | |||||
Net Sales: | |||||
Net sales | 6 | 2 | |||
Unallocated Corporate [Member] | |||||
Operating Income (Loss) | |||||
Total operating income (loss) | (7,654) | (7,604) | (26,754) | (23,656) | |
Depreciation and Amortization: | |||||
Total depreciation and amortization | 297 | 200 | 726 | 596 | |
Interest Expense, net: | |||||
Total interest expense, net | 812 | 874 | 2,271 | 2,772 | |
Capital Expenditures: | |||||
Capital expenditures | 683 | $ 786 | 1,910 | $ 2,451 | |
Total Assets: | |||||
Total assets | $ 359,351 | $ 359,351 | $ 359,837 |
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 | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||||
Net sales | $ 203,386 | $ 208,853 | $ 643,924 | $ 655,385 | |
Long-term Assets: | |||||
Total long-term assets | 262,762 | 262,762 | $ 239,342 | ||
North America [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 115,816 | 119,475 | 358,476 | 364,789 | |
Long-term Assets: | |||||
Total long-term assets | 92,575 | 92,575 | 86,763 | ||
South America [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 16,542 | 18,864 | 50,488 | 59,742 | |
Long-term Assets: | |||||
Total long-term assets | 48,174 | 48,174 | 45,408 | ||
Europe and Other [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 71,028 | $ 70,514 | 234,960 | $ 230,854 | |
Long-term Assets: | |||||
Total long-term assets | $ 122,013 | $ 122,013 | $ 107,171 |
Investments (Narrative) (Detail
Investments (Narrative) (Details) R$ in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | 64 Months Ended | |||||||||
Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | May 15, 2017 | Sep. 30, 2019BRL (R$) | Sep. 30, 2019USD ($) | Dec. 31, 2018BRL (R$) | Dec. 31, 2018USD ($) | Sep. 30, 2018BRL (R$) | Sep. 30, 2018USD ($) | May 16, 2017 | |
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Income (loss) from equity method investments | $ 318 | $ 249 | $ 1,230 | $ 1,435 | ||||||||
MSIL | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Equity method investment, ownership percentage | 49.00% | 49.00% | 49.00% | 49.00% | ||||||||
Equity method investments | $ 12,351 | $ 11,288 | ||||||||||
Income (loss) from equity method investments | $ 318 | $ 249 | $ 1,230 | $ 1,435 | ||||||||
PST Eletronica Ltda [Member] | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Percentage ownership in consolidated subsidiary | 74.00% | |||||||||||
Percentage of additional noncontrolling interest acquired | 26.00% | |||||||||||
Dividends Payable, Price Index Adjustment | R$ 668 | 162 | R$ 766 | $ 189 | ||||||||
PST Eletronica Ltda [Member] | Noncontrolling interest | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Dividends payable | R$ 23871 | 5,745 | R$ 23204 | 5,980 | ||||||||
Autotech Ventures [Member] | Venture Capital Funds [Member] | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Investment commitment | 10,000 | |||||||||||
Investment | 1,653 | $ 437 | ||||||||||
Contribution expected period (in years) | 10 years | |||||||||||
Contribution by company | $ 1,200 |
Disposal of Non-Core Products (
Disposal of Non-Core Products (Narrative) (Details) - USD ($) $ in Thousands | Apr. 01, 2019 | Sep. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 |
Asset Purchase Agreement date | Apr. 1, 2019 | |||||
Proceeds from sale of productive assets | $ 40,000 | |||||
Gain on disposal | $ 33,599 | |||||
Selling, general and administrative | $ 30,978 | $ 32,589 | 94,088 | $ 105,106 | ||
Non-core Switches and Connector Product [Member] | ||||||
Disposal group, net sales | 35,080 | |||||
Non-core Switches and Connector Product [Member] | Disposal Group, Disposed of by Sale, Not Discontinued Operations [Member] | ||||||
Disposal group, net sales | 10,770 | 11,071 | 34,200 | |||
Disposal group, operating income | 1,072 | $ 2,334 | 4,445 | $ 7,059 | ||
Control Devices [Member] | Non-core Switches and Connector Product [Member] | Disposal Group, Disposed of by Sale, Not Discontinued Operations [Member] | ||||||
Disposal group, net sales | 4,160 | 10,770 | 19,824 | |||
Disposal group, cost of goods sold | 2,775 | |||||
Disposal group, operating income | 1,072 | 1,072 | ||||
Gain on disposal | $ 33,921 | |||||
Selling, general and administrative | $ 322 | |||||
Services provided income per agreement recognized as reduction to selling general and administrative expenses | 675 | 1,350 | ||||
Cash received for reimbursement of retention costs on disposal | $ 170 | $ 170 |