Document_and_entity_informatio
Document and entity information | 9 Months Ended |
Sep. 30, 2013 | |
Document and Entity Information [Abstract] | |
Entity Registrant Name | Remy International, Inc. |
Entity Central Index Key | 1046859 |
Current Fiscal Year End Date | -19 |
Entity Filer Category | Non-accelerated Filer |
Document Type | 10-Q |
Document Period End Date | 30-Sep-13 |
Document Fiscal Year Focus | 2013 |
Document Fiscal Period Focus | Q3 |
Amendment Flag | FALSE |
Entity Common Stock, Shares Outstanding | 32,006,216 |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | No |
Consolidated_balance_sheets
Consolidated balance sheets (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $81,033 | $111,733 |
Trade accounts receivable (less allowances of $1,608 and $1,931) | 191,133 | 170,637 |
Other receivables | 22,063 | 17,203 |
Inventories | 164,417 | 158,936 |
Deferred income taxes | 43,887 | 36,315 |
Prepaid expenses and other current assets | 10,358 | 15,431 |
Total current assets | 512,891 | 510,255 |
Property, plant and equipment | 242,841 | 227,955 |
Less accumulated depreciation and amortization | -99,369 | -86,072 |
Property, plant and equipment, net | 143,472 | 141,883 |
Deferred financing costs, net of amortization | 3,972 | 4,867 |
Goodwill | 271,418 | 271,418 |
Intangibles, net | 93,129 | 99,329 |
Other noncurrent assets | 69,096 | 73,463 |
Total assets | 1,093,978 | 1,101,215 |
Current liabilities: | ||
Short-term debt | 3,272 | 9,098 |
Current maturities of long-term debt | 3,542 | 3,470 |
Accounts payable | 147,192 | 155,407 |
Accrued interest | 89 | 112 |
Accrued restructuring | 1,849 | 3,679 |
Other current liabilities and accrued expenses | 116,089 | 108,157 |
Total current liabilities | 272,033 | 279,923 |
Long-term debt, net of current maturities | 294,604 | 284,475 |
Postretirement benefits other than pensions | 1,744 | 1,969 |
Accrued pension benefits | 30,140 | 31,762 |
Deferred income taxes | 1,250 | 2,390 |
Other noncurrent liabilities | 29,463 | 29,188 |
Remy International, Inc. stockholders' equity: | ||
Common stock, Par value of $0.0001; 32,006,216 shares outstanding at September 30, 2013, and 31,865,008 shares outstanding at December 31, 2012 | 3 | 3 |
Treasury stock, at cost; 243,252 treasury shares at September 30, 2013, and 133,467 treasury shares at December 31, 2012 | -1,477 | -229 |
Additional paid-in capital | 318,721 | 323,912 |
Retained earnings | 199,915 | 186,483 |
Accumulated other comprehensive loss | -52,418 | -50,307 |
Total Remy International, Inc. stockholders' equity | 464,744 | 459,862 |
Noncontrolling interest | 0 | 11,646 |
Total equity | 464,744 | 471,508 |
Total liabilities and equity | $1,093,978 | $1,101,215 |
Consolidated_balance_sheets_Ba
Consolidated balance sheets Balance Sheet Parenthtical (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, except Share data, unless otherwise specified | ||
Current assets: | ||
Allowance for doubtful accounts | $1,608 | $1,931 |
Stockholders' Equity: | ||
Common Stock, par value | $0.00 | $0.00 |
Common Stock, shares outstanding | 32,006,216 | 31,865,008 |
Treasury Stock, shares outstanding | 243,252 | 133,467 |
Consolidated_statements_of_ope
Consolidated statements of operations (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Income Statement [Abstract] | ||||
Net sales | $262,832 | $277,401 | $826,908 | $865,282 |
Cost of goods sold | 210,600 | 222,592 | 664,996 | 686,943 |
Gross profit | 52,232 | 54,809 | 161,912 | 178,339 |
Selling, general, and administrative expenses | 29,760 | 30,103 | 102,325 | 97,891 |
Restructuring and other charges | 1,454 | 5,374 | 4,263 | 8,964 |
Operating income | 21,018 | 19,332 | 55,324 | 71,484 |
Interest expensebnet | 5,370 | 7,283 | 15,438 | 21,047 |
Loss on extinguishment of debt and refinancing fees | 0 | 0 | 4,256 | 0 |
Income before income taxes | 15,648 | 12,049 | 35,630 | 50,437 |
Income tax expense (benefit) | 5,292 | -85,310 | 11,967 | -74,410 |
Net income | 10,356 | 97,359 | 23,663 | 124,847 |
Less net income attributable to noncontrolling interest | 0 | 827 | 659 | 2,164 |
Net income attributable to common stockholders | $10,356 | $96,532 | $23,004 | $122,683 |
Basic earnings per share: | ||||
Earnings per share | $0.33 | $3.15 | $0.74 | $4.01 |
Weighted average shares outstanding | 31,240 | 30,638 | 31,196 | 30,595 |
Diluted earnings per share: | ||||
Earnings per share | $0.33 | $3.11 | $0.73 | $3.97 |
Weighted average shares outstanding | 31,383 | 30,993 | 31,338 | 30,864 |
Dividends declared per common share | $0.10 | $0.10 | $0.30 | $0.20 |
Consolidated_statements_of_com
Consolidated statements of comprehensive income (loss) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Net income | $10,356 | $97,359 | $23,663 | $124,847 |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustments | 5,566 | 2,200 | 336 | -158 |
Employee benefit plans, net of tax | 105 | -22 | 475 | -293 |
Total other comprehensive income (loss), net of tax | 10,238 | 7,774 | -1,911 | 13,891 |
Comprehensive income | 20,594 | 105,133 | 21,752 | 138,738 |
Less: Comprehensive income attributable to noncontrolling interest | 0 | 827 | 659 | 2,164 |
Less: Other comprehensive income (loss) attributable to noncontrolling interest- foreign currency translation | 0 | -26 | 200 | -61 |
Comprehensive income attributable to Remy International, Inc. | 20,594 | 104,332 | 20,893 | 136,635 |
Foreign Exchange Contract | ||||
Other comprehensive income (loss): | ||||
Derivative contracts, net of tax | 1,916 | 4,687 | -2,254 | 11,544 |
Commodity Contract | ||||
Other comprehensive income (loss): | ||||
Derivative contracts, net of tax | 2,714 | 909 | -1,029 | 2,798 |
Interest Rate Swap | ||||
Other comprehensive income (loss): | ||||
Derivative contracts, net of tax | ($63) | $0 | $561 | $0 |
Consolidated_statements_of_cas
Consolidated statements of cash flows (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Cash flows from operating activities: | ||
Net income | $23,663 | $124,847 |
Adjustments to reconcile net income to cash (used in) provided by operating activities: | ||
Depreciation and amortization | 25,767 | 28,010 |
Amortization of debt issuance costs | 868 | 1,326 |
Loss on extinguishment of debt and refinancing fees | 4,256 | 0 |
Stock-based compensation | 4,894 | 5,419 |
Deferred income taxes | 766 | -83,537 |
Accrued pension and postretirement benefits, net | -992 | -2,515 |
Restructuring and other charges | 4,263 | 8,964 |
Cash payments for restructuring charges | -6,093 | -5,671 |
Other | -1,732 | -2,000 |
Changes in operating assets and liabilities, net of restructuring charges: | ||
Accounts receivable | -24,546 | -2,980 |
Inventories | -5,300 | 5,247 |
Accounts payable | -8,402 | -6,693 |
Other current assets and liabilities, net | 8,842 | -16,493 |
Other noncurrent assets and liabilities, net | -10,917 | -14,932 |
Net cash provided by operating activities | 15,337 | 38,992 |
Cash flows from investing activities: | ||
Purchases of property, plant and equipment | -17,394 | -18,160 |
Net proceeds on sale of assets | 585 | 268 |
Government grant proceeds related to capital expenditures | 0 | 941 |
Net cash used in investing activities | -16,809 | -16,951 |
Cash flows from financing activities: | ||
Change in short-term debt and revolver | -5,724 | -4,030 |
Payments made on long-term debt, including capital leases | -289,861 | -9,572 |
Proceeds from issuance of long-term debt | 299,250 | 0 |
Dividend payments on common stock | -9,462 | -6,128 |
Purchase of treasury stock | -1,248 | -23 |
Debt issuance costs | -3,476 | 0 |
Purchase of and distributions to noncontrolling interest | -18,961 | 0 |
Other | 0 | 565 |
Net cash used in financing activities | -29,482 | -19,188 |
Effect of exchange rate changes on cash and cash equivalents | 254 | 840 |
Net increase (decrease) in cash and cash equivalents | -30,700 | 3,693 |
Cash and cash equivalents at beginning of period | 111,733 | 91,684 |
Cash and cash equivalents at end of period | 81,033 | 95,377 |
Accounts Payable | ||
Noncash investing and financing activities: | ||
Purchases of property, plant and equipment | $1,678 | $2,670 |
Description_of_the_business
Description of the business | 9 Months Ended |
Sep. 30, 2013 | |
Description of the business [Abstract] | |
Nature of Operations | 1. Description of the business |
Business | |
Remy International, Inc. (together with its subsidiaries, “we”, “our”, “us”, “Remy” or the “Company”) is a leading global vehicular parts designer, manufacturer, remanufacturer, marketer and distributor of aftermarket and original equipment electrical components for automobiles, light-duty trucks, heavy-duty trucks and other vehicles. We sell our products worldwide primarily under the “Delco Remy”, “Remy”, and “World Wide Automotive” brand names and our customers' widely recognized private label brand names. Our products include new and remanufactured, light-duty and heavy-duty starters and alternators for both original equipment and aftermarket applications, and hybrid power technology. These products are principally sold or distributed to original equipment manufacturers (“OEMs”) for both original equipment manufacture and aftermarket operations, as well as, to warehouse distributors and retail automotive parts chains. We sell our products principally in North America, Europe, South America and Asia-Pacific. | |
We are one of the largest producers in the world of remanufactured starters and alternators for the aftermarket. Our remanufacturing operations obtain failed products, commonly known as cores, from our customers as returns. These cores are an essential material needed for the remanufacturing operations. We have expanded our operations to become a low cost, global manufacturer and remanufacturer with a more balanced business mix between the aftermarket and the original equipment market, especially in the heavy duty OEM market, since we separated from General Motors Corporation (“GM”) in 1994, when we were essentially an original equipment supplier predominantly to GM. | |
In general, our business is influenced by the underlying trends in the automobile, light truck, and heavy-duty truck, construction and industrial markets. We have been able to reduce the impact from the cyclical nature of some of our businesses with the diversity of OEM markets between the automotive, heavy-duty truck and industrial markets by focusing on our remanufacturing capabilities and our aftermarket business. | |
The automotive parts market is highly competitive. Competition is based primarily on quality of products, service, delivery, technical support and price. Most OEMs and aftermarket distributors source parts from one or two suppliers and we compete with a number of companies who supply automobile manufacturers throughout the world. | |
On August 14, 2012, Fidelity National Special Opportunities, Inc., or "FNSO," a wholly-owned subsidiary of Fidelity National Financial, Inc., or "FNF", a leading provider of title insurance, mortgage services and restaurant and diversified services, purchased additional shares of Remy International, Inc. common stock, thereby increasing its ownership position above 50%. As a result, FNF began consolidating the financial results of Remy in the third quarter of 2012. As of September 30, 2013, FNSO held a 51% ownership interest in Remy, comprised of 16,342,508 shares of our common stock. Additionally, FNF and related subsidiaries participated in our Amended and Restated Term B Loan Credit Agreement on March 5, 2013 and held $29,775,000 principal amount of our Amended and Restated Term B loan as of September 30, 2013. | |
As of December 31, 2012, FNSO held a 51% ownership interest in Remy, comprised of 16,342,508 shares of our common stock. Additionally, FNF and related subsidiaries held $28,698,000 principal amount of our Term B loan as of December 31, 2012. |
Summary_of_significant_account
Summary of significant accounting policies | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Accounting Policies [Abstract] | ||||||||||||||||
Significant Accounting Policies | 2. Summary of significant accounting policies | |||||||||||||||
Interim condensed consolidated financial statements | ||||||||||||||||
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (U.S. GAAP) for interim financial information. Accordingly, certain information and footnote disclosures normally included in annual financial statements have been condensed or omitted. These statements include all adjustments (consisting of normal recurring adjustments) that our management believes are necessary to present fairly our financial position, results of operations, and cash flows. We believe that the disclosures are adequate to make the information presented not misleading when read in conjunction with our audited consolidated financial statements and the notes thereto in our Annual Report on Form 10-K for the year ended December 31, 2012. | ||||||||||||||||
Operating results for the interim periods presented in this report are not necessarily indicative of the results that may be expected for any future interim period or for the full year. | ||||||||||||||||
Use of estimates | ||||||||||||||||
The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expense during the year. Actual results could differ from these estimates. | ||||||||||||||||
Government grants | ||||||||||||||||
We record government grants when there is reasonable assurance that the grant will be received and we will comply with the conditions attached to the grants received. Grants related to income are recorded as an offset to the related expense in the accompanying statements of operations. Grants related to assets are recorded as deferred revenue and recognized on a straight-line basis over the useful life of the related asset. We continue to evaluate our compliance with the conditions attached to the related grants. | ||||||||||||||||
The U.S. Department of Energy, or the DOE, awarded us a grant in 2009, pursuant to which it agreed to match up to $60,200,000 of eligible expenditures we make through 2012 for the commercialization of hybrid electric motor technology. We obtained agreements from the DOE to extend the period of eligibility for the grant through 2013. As of December 31, 2012, we have completed the first phase of the grant award and have received $36,000,000 of the total grant. As a number of our hybrid customers have delayed launches of their products or cancelled their programs, we are now moderating our investments in hybrid until the market develops. On July 10, 2013, we formally notified the DOE that we have elected not to pursue the second phase of the grant. | ||||||||||||||||
In addition, we received various grants and subsidies from foreign jurisdictions during the three and nine month periods ended September 30, 2013, and 2012. The amounts recognized in the accompanying consolidated statements of operations as government grants were as follows: | ||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
(In thousands) | 2013 | 2012 | 2013 | 2012 | ||||||||||||
Reduction of cost of goods sold | $ | 628 | $ | 1,256 | $ | 1,900 | $ | 3,712 | ||||||||
Reduction of selling, general, and administrative expenses | $ | 220 | $ | 1,299 | $ | 556 | $ | 5,142 | ||||||||
As of September 30, 2013 and December 31, 2012, we had deferred revenue of $6,465,000 and $7,414,000, respectively, related to government grants. | ||||||||||||||||
Trade accounts receivable and allowance for doubtful accounts | ||||||||||||||||
Trade accounts receivable is stated at net realizable value, which approximates fair value. Substantially all of our trade accounts receivable are due from customers in the original equipment and aftermarket automotive industries, both domestically and internationally. Trade accounts receivable includes notes receivable of $27,205,000 and $29,091,000 as of September 30, 2013 and December 31, 2012, respectively. As of September 30, 2013, notes receivables and accounts payable included commercial paper amounts endorsed or transferred to trade suppliers with recourse of $3,775,000. Trade accounts receivable is reduced by an allowance for amounts that are expected to become uncollectible in the future and for disputed items. We perform periodic credit evaluations of our customers' financial condition and generally do not require collateral. We maintain allowances for doubtful customer accounts for estimated losses resulting from the inability of our customers to make required payments. The allowance for doubtful accounts is developed based on several factors including customers' credit quality, historical write-off experience and any known specific issues or disputes which exist as of the balance sheet date. If the financial condition of our customers were to deteriorate, resulting in an impairment of their ability to make payments, additional allowances may be required. | ||||||||||||||||
Warranty | ||||||||||||||||
We provide certain warranties relating to quality and performance of our products. An allowance for the estimated future cost of product warranties and other defective product returns is based on management's estimate of product failure rates and customer eligibility. If these factors differ from management's estimates, revisions to the estimated warranty liability may be required. The specific terms and conditions of the warranties vary depending upon the customer and the product sold. | ||||||||||||||||
Earnings per share | ||||||||||||||||
Basic earnings per share is calculated by dividing net earnings by the weighted average shares outstanding during the period. Diluted earnings per share is based on the weighted average number of shares outstanding plus the assumed issuance of common shares and related adjustment to net income attributable to common stockholders related to all potentially dilutive securities. For the three months ended September 30, 2013 and 2012, in applying the treasury stock method, equivalent shares of unvested restricted stock and restricted stock units of 143,376 and 355,268 shares, respectively, were included in the weighted average shares outstanding in the diluted calculation. For the nine months ended September 30, 2013 and 2012, in applying the treasury stock method, equivalent shares of unvested restricted stock and restricted stock units of 142,131 and 268,633 shares, respectively, were included in the weighted average shares outstanding in the diluted calculation. Anti-dilutive stock options of 267,132 and 216,619 were excluded from the calculation of dilutive earnings per share for the three and nine month period ended September 30, 2013, respectively. There were no restricted shares or stock options excluded from the calculation of dilutive earnings per share for the three and nine month period ended September 30, 2012. | ||||||||||||||||
Recent accounting adoptions | ||||||||||||||||
In February 2013, the FASB issued ASU No. 2013-02, Comprehensive Income (Topic 220), Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income, which requires an entity to provide information about the amounts reclassified out of accumulated other comprehensive income by component. In addition, an entity is required to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income but only if the amount reclassified is required under U.S. GAAP to be reclassified to net income in its entirety in the same reporting period. ASU No. 2013-02 is effective prospectively for reporting periods beginning after December 15, 2012. We adopted this guidance on January 1, 2013. The adoption of this guidance increased our disclosures, but did not have an impact on our consolidated financial position, results of operations or cash flows. | ||||||||||||||||
In December 2011, the FASB issued ASU No. 2011-11, Balance Sheet (Topic 210), Disclosures about Offsetting Assets and Liabilities, which requires an entity to disclose information about offsetting and related arrangements to enable users of its financial statements to understand the effect of those arrangements on its financial position. In January 2013, the FASB issued ASU No. 2013-01, Clarifying the Scope of Disclosures About Offsetting Assets and Liabilities, that limits the scope of the new balance sheet offsetting disclosures to derivatives, repurchase agreements and securities lending transactions to the extent they are offset in the financial statements or subject to an enforceable master netting arrangement or similar agreement. ASU No. 2011-11, as clarified by ASU No. 2013-01, is effective for annual reporting periods beginning on or after January 1, 2013 and interim periods within those annual periods. We adopted this guidance on January 1, 2013. The adoption of this guidance had an immaterial impact. | ||||||||||||||||
New accounting pronouncements | ||||||||||||||||
In July 2013, the FASB issued ASU No. 2013-11, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists to provide guidance on the presentation of unrecognized tax benefits. ASU 2013-11 requires an entity to present an unrecognized tax benefit, or a portion of an unrecognized tax benefit, as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward with certain limited exceptions. ASU 2013-11 is effective for annual reporting periods beginning on or after December 15, 2013 and interim periods within those annual periods with earlier adoption permitted. This guidance is effective January 1, 2014. ASU 2013-11 should be applied prospectively with retroactive application permitted. We are currently evaluating the impact of ASU 2013-11 on our consolidated financial statements. |
Fair_value_measurements
Fair value measurements | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||
Fair Value Disclosures | 3. Fair value measurements | |||||||||||||||
FASB ASC Topic 820, Fair Value Measurements and Disclosures, clarifies that fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based upon assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, FASB ASC Topic 820 establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: | ||||||||||||||||
Level 1: Observable inputs such as quoted prices in active markets; | ||||||||||||||||
Level 2: Inputs, other than quoted prices in active markets, that are observable either directly or indirectly; and | ||||||||||||||||
Level 3: Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions. | ||||||||||||||||
An asset's or liability's fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques used maximize the use of observable inputs and minimize the use of unobservable inputs. | ||||||||||||||||
Assets and liabilities measured at fair value are based on one or more of the following three valuation techniques noted in FASB ASC Topic 820: | ||||||||||||||||
A. | Market approach: Prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. | |||||||||||||||
B. | Cost approach: Amount that would be required to replace the service capacity of an asset (replacement cost). | |||||||||||||||
C. | Income approach: Techniques to convert future amounts to a single present amount based upon market expectations (including present value techniques, option-pricing and excess earnings models). | |||||||||||||||
Assets and liabilities remeasured and disclosed at fair value on a recurring basis as of September 30, 2013, and December 31, 2012, are set forth in the table below: | ||||||||||||||||
As of September 30, 2013 | As of December 31, 2012 | |||||||||||||||
(In thousands) | Asset/ | Level 2 | Valuation | Asset/ | Level 2 | Valuation | ||||||||||
(liability) | technique | (liability) | technique | |||||||||||||
Interest rate swap contracts | $ | (310 | ) | $ | (310 | ) | C | $ | (2,218 | ) | $ | (2,218 | ) | C | ||
Foreign exchange contracts | 2,635 | 2,635 | C | 5,328 | 5,328 | C | ||||||||||
Commodity contracts | (3,029 | ) | (3,029 | ) | C | (1,315 | ) | (1,315 | ) | C | ||||||
We calculate the fair value of our interest rate swap contracts, commodity contracts and foreign currency contracts using quoted interest rate curves, quoted commodity forward rates and quoted currency forward rates. For contracts which, when aggregated by counterparty, are in a liability position, the discount rates are adjusted by the credit spread that market participants would apply if buying these contracts from our counterparties. | ||||||||||||||||
In addition to items that are measured at fair value on a recurring basis, we also have assets and liabilities that are measured at fair value on a nonrecurring basis. As these assets and liabilities are not measured at fair value on a recurring basis, they are not included in the tables above. Assets and liabilities that are measured at fair value on a nonrecurring basis include long-lived assets (see Note 7). We have determined that the fair value measurements included in each of these assets and liabilities rely primarily on our assumptions as observable inputs are not available. As such, we have determined that each of these fair value measurements reside within Level 3 of the fair value hierarchy. |
Financial_instruments
Financial instruments | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Financial Instruments [Abstract] | |||||||||||||||||
Financial Instruments Disclosure | 4. Financial instruments | ||||||||||||||||
Foreign currency risk | |||||||||||||||||
We manufacture and sell our products primarily in North America, South America, Asia, Europe and Africa. As a result our financial results could be significantly affected by factors such as changes in foreign currency exchange rates or weak economic conditions in foreign markets in which we manufacture and sell our products. We generally try to use natural hedges within our foreign currency activities, including the matching of revenues and costs, to minimize foreign currency risk. Where natural hedges are not in place, we consider managing certain aspects of our foreign currency activities through the use of foreign exchange contracts. We primarily utilize forward exchange contracts with maturities generally within fifteen months to hedge against currency rate fluctuations, and are designated as hedges. | |||||||||||||||||
As of September 30, 2013, and December 31, 2012, we had the following outstanding foreign currency contracts that were entered into to hedge forecasted purchases and revenues, respectively: | |||||||||||||||||
(In thousands) | Currency denomination | ||||||||||||||||
September 30, | December 31, | ||||||||||||||||
Foreign currency contract | 2013 | 2012 | |||||||||||||||
South Korean Won Forward | $ | 45,735 | $ | 55,546 | |||||||||||||
Mexican Peso Contracts | $ | 54,985 | $ | 66,674 | |||||||||||||
Brazilian Real Forward | $ | 11,698 | $ | 18,055 | |||||||||||||
Hungarian Forint Forward | € | 10,921 | € | 13,565 | |||||||||||||
Great Britain Pound Forward | £ | 2,750 | £ | 1,370 | |||||||||||||
Accumulated unrealized net gains of $1,172,000 and $3,426,000 were recorded in accumulated other comprehensive income (loss) (AOCI) as of September 30, 2013, and December 31, 2012, respectively. As of September 30, 2013, gains of $1,216,000 are expected to be reclassified to the consolidated statement of operations within the next twelve months. Any ineffectiveness during the three and nine month periods ended September 30, 2013 and 2012, respectively, was immaterial. | |||||||||||||||||
Interest rate risk | |||||||||||||||||
During 2010, we entered into an interest rate swap agreement in respect to 50% of the outstanding principal balance of our Term B Loan under which we swapped a variable LIBOR rate with a floor of 1.75% to a fixed rate of 3.345%. Due to the significant value of terminated swaps which were rolled into this Term B Loan swap, this Term B Loan interest rate swap was an undesignated hedge and changes in the fair value were recorded as interest expense-net in the accompanying consolidated statements of operations. | |||||||||||||||||
On March 27, 2013, we terminated our undesignated Term B Loan interest rate swap and transferred the value into a new undesignated interest rate swap agreement of $72,000,000 of the outstanding principal loan balance under which we swap a variable LIBOR rate with a floor of 1.25% to a fixed rate of 4.045% with an effective date of December 30, 2016 and expiration date of December 31, 2019. The notional value of this interest rate swap is $72,000,000, and is reduced by $187,500 quarterly from the effective date. Due to the significant value of the terminated swaps which were transferred into this new swap, this interest rate swap is an undesignated hedge and changes in the fair value are recorded as interest expense-net in the accompanying consolidated statements of operations. | |||||||||||||||||
On March 27, 2013, we also entered into a designated interest rate swap agreement for $72,000,000 of the outstanding principal balance of our long term debt. Under the terms of the new interest rate swap agreement, we swap a variable LIBOR rate with a floor of 1.25% to a fixed rate of 2.75% with an effective date of December 30, 2016 and expiration date of December 31, 2019. The notional value of this interest rate swap is $72,000,000, and is reduced by $187,500 quarterly from the effective date. This interest rate swap has been designated as a cash flow hedging instrument. Accumulated unrealized gains of $922,000, excluding the tax effect, were recorded in accumulated other comprehensive income (loss) (AOCI) as of September 30, 2013, and there were none recorded as of December 31, 2012. As of September 30, 2013, no gains are expected to be reclassified to the consolidated statement of operations within the next twelve months. Any ineffectiveness during the three and nine month periods ended September 30, 2013, and 2012 was immaterial. | |||||||||||||||||
The interest rate swaps reduce our overall interest rate risk. However, due to the remaining outstanding borrowings on the Amended and Restated Term B Loan and other borrowing facilities that continue to have variable interest rates, management believes that interest rate risk to us could be material if there are significant adverse changes in interest rates. | |||||||||||||||||
Commodity price risk | |||||||||||||||||
Our production processes are dependent upon the supply of certain components whose raw materials are exposed to price fluctuations on the open market. The primary purpose of our commodity price forward contract activity is to manage the volatility associated with forecasted purchases. We monitor our commodity price risk exposures regularly to maximize the overall effectiveness of our commodity forward contracts. The principal raw material hedged is copper. Forward contracts are used to mitigate commodity price risk associated with raw materials, generally related to purchases forecast for up to twenty-four months in the future. Additionally, we purchase certain commodities during the normal course of business which result in physical delivery and are excluded from hedge accounting. | |||||||||||||||||
We had twenty-nine commodity price hedge contracts outstanding at September 30, 2013, and thirty-six commodity price hedge contracts outstanding at December 31, 2012, with combined notional quantities of 5,423 and 6,566 metric tons of copper, respectively. These contracts mature within the next fifteen months. These contracts were designated as cash flow hedging instruments. Accumulated unrealized losses of $2,985,000 and $1,288,000, excluding the tax effect, were recorded in AOCI as of September 30, 2013, and December 31, 2012, respectively. As of September 30, 2013, losses of $3,129,000 are expected to be reclassified to the accompanying consolidated statement of operations within the next 12 months. Hedge ineffectiveness during the three and nine month periods ended September 30, 2013, and 2012, was immaterial. | |||||||||||||||||
Other | |||||||||||||||||
We present our derivative positions and any related material collateral under master netting agreements on a net basis. For derivatives designated as cash flow hedges, changes in the time value are excluded from the assessment of hedge effectiveness. Unrealized gains and losses associated with ineffective hedges, determined using the change in fair value method, are recognized in the accompanying consolidated statements of operations. Derivative gains and losses included in AOCI for effective hedges are reclassified into the accompanying consolidated statements of operations upon recognition of the hedged transaction. | |||||||||||||||||
Any derivative instrument designated initially, but no longer effective as a hedge, or initially not effective as a hedge, is recorded at fair value and the related gains and losses are recognized in the accompanying consolidated statements of operations. Our undesignated hedges are primarily our interest rate swaps whose fair value at inception of the instrument due to the rollover of existing interest rate swaps resulted in ineffectiveness. The following table discloses the fair values and balance sheet locations of our derivative instruments: | |||||||||||||||||
Asset derivatives | Liability derivatives | ||||||||||||||||
(In thousands) | Balance sheet location | September 30, 2013 | December 31, 2012 | Balance sheet location | September 30, 2013 | December 31, 2012 | |||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||||
Commodity contracts | Prepaid expenses and | $ | 110 | $ | 427 | Other current liabilities | $ | 3,284 | $ | 2,009 | |||||||
other current assets | and accrued expenses | ||||||||||||||||
Commodity contracts | Other noncurrent assets | 145 | 267 | Other noncurrent liabilities | — | — | |||||||||||
Foreign currency contracts | Prepaid expenses and | 2,697 | 5,537 | Other current liabilities | 49 | 26 | |||||||||||
other current assets | and accrued expenses | ||||||||||||||||
Foreign currency contracts | Other noncurrent assets | 44 | 127 | Other noncurrent liabilities | 57 | 310 | |||||||||||
Interest rate swap contracts | Other noncurrent assets | 922 | — | Other noncurrent liabilities | — | — | |||||||||||
Total derivatives designated as hedging instruments | $ | 3,918 | $ | 6,358 | $ | 3,390 | $ | 2,345 | |||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||
Interest rate swap contracts | Prepaid expenses and | $ | — | $ | — | Other current liabilities | $ | — | $ | 2,218 | |||||||
other current assets | and accrued expenses | ||||||||||||||||
Interest rate swap contracts | Other noncurrent assets | — | — | Other noncurrent liabilities | 1,232 | — | |||||||||||
Total derivatives not designated as hedging instruments | $ | — | $ | — | $ | 1,232 | $ | 2,218 | |||||||||
The following tables disclose the effect of our derivative instruments on the accompanying consolidated statement of operations for the three months ended September 30, 2013 (in thousands): | |||||||||||||||||
Derivatives designated as cash flow hedging instruments | Amount of gain (loss) recognized in OCI on derivatives (effective portion) | Location of gain (loss) reclassified from AOCI into income (effective portion) | Amount of gain (loss) reclassified from AOCI into income (effective portion) | Location of gain (loss) recognized in income on derivatives (ineffective portion and amount excluded from effectiveness testing) | Amount of gain (loss) recognized in income on derivatives (ineffective portion and amount excluded from effectiveness testing) | ||||||||||||
Commodity contracts | $ | 2,863 | Cost of goods sold | $ | (1,591 | ) | Cost of goods sold | $ | 28 | ||||||||
Foreign currency contracts | 4,494 | Cost of goods sold | 2,068 | Cost of goods sold | — | ||||||||||||
Interest rate swap contracts | (102 | ) | Interest expense–net | — | Interest expense–net | — | |||||||||||
$ | 7,255 | $ | 477 | $ | 28 | ||||||||||||
Derivatives not designated as hedging instruments | Location of gain (loss) recognized in income on derivatives | Amount of gain (loss) recognized in income on derivatives | |||||||||||||||
Interest rate swap | Interest expense–net | $ | (137 | ) | |||||||||||||
The following tables disclose the effect of our derivative instruments on the accompanying consolidated statement of operations for the three months ended September 30, 2012 (in thousands): | |||||||||||||||||
Derivatives designated as cash flow hedging instruments | Amount of gain (loss) recognized in OCI on derivatives (effective portion) | Location of gain (loss) reclassified from AOCI into income (effective portion) | Amount of gain (loss) reclassified from AOCI into income (effective portion) | Location of gain (loss) recognized in income on derivatives (ineffective portion and amount excluded from effectiveness testing) | Amount of gain (loss) recognized in income on derivatives (ineffective portion and amount excluded from effectiveness testing) | ||||||||||||
Commodity contracts | $ | 958 | Cost of goods sold | $ | (1,637 | ) | Cost of goods sold | $ | 29 | ||||||||
Foreign currency contracts | 5,316 | Cost of goods sold | (580 | ) | Cost of goods sold | — | |||||||||||
$ | 6,274 | $ | (2,217 | ) | $ | 29 | |||||||||||
Derivatives not designated as hedging instruments | Location of gain (loss) recognized in income on derivatives | Amount of gain (loss) recognized in income on derivatives | |||||||||||||||
Interest rate swap contracts | Interest expense–net | $ | (86 | ) | |||||||||||||
The following tables disclose the effect of our derivative instruments on the accompanying consolidated statement of operations for the nine months ended September 30, 2013 (in thousands): | |||||||||||||||||
Derivatives designated as cash flow hedging instruments | Amount of gain (loss) recognized in OCI on derivatives (effective portion) | Location of gain (loss) reclassified from AOCI into income (effective portion) | Amount of gain (loss) reclassified from AOCI into income (effective portion) | Location of gain (loss) recognized in income on derivatives (ineffective portion and amount excluded from effectiveness testing) | Amount of gain (loss) recognized in income on derivatives (ineffective portion and amount excluded from effectiveness testing) | ||||||||||||
Commodity contracts | $ | (4,071 | ) | Cost of goods sold | $ | (2,374 | ) | Cost of goods sold | $ | (58 | ) | ||||||
Foreign currency contracts | 1,988 | Cost of goods sold | 4,887 | Cost of goods sold | — | ||||||||||||
Interest rate swap contracts | 922 | Interest expense–net | — | Interest expense–net | — | ||||||||||||
$ | (1,161 | ) | $ | 2,513 | $ | (58 | ) | ||||||||||
Derivatives not designated as hedging instruments | Location of gain (loss) recognized in income on derivatives | Amount of gain (loss) recognized in income on derivatives | |||||||||||||||
Interest rate swap | Interest expense–net | $ | 986 | ||||||||||||||
The following tables disclose the effect of our derivative instruments on the accompanying consolidated statement of operations for the nine months ended September 30, 2012 (in thousands): | |||||||||||||||||
Derivatives designated as cash flow hedging instruments | Amount of gain (loss) recognized in OCI on derivatives (effective portion) | Location of gain (loss) reclassified from AOCI into income (effective portion) | Amount of gain (loss) reclassified from AOCI into income (effective portion) | Location of gain (loss) recognized in income on derivatives (ineffective portion and amount excluded from effectiveness testing) | Amount of gain (loss) recognized in income on derivatives (ineffective portion and amount excluded from effectiveness testing) | ||||||||||||
Commodity contracts | $ | 1,143 | Cost of goods sold | $ | (3,341 | ) | Cost of goods sold | $ | 18 | ||||||||
Foreign currency contracts | 9,698 | Cost of goods sold | (3,627 | ) | Cost of goods sold | — | |||||||||||
$ | 10,841 | $ | (6,968 | ) | $ | 18 | |||||||||||
Derivatives not designated as hedging instruments | Location of gain (loss) recognized in income on derivatives | Amount of gain (loss) recognized in income on derivatives | |||||||||||||||
Interest rate swap contracts | Interest expense–net | $ | (408 | ) | |||||||||||||
Concentrations of credit risk | |||||||||||||||||
Financial instruments, which potentially subject us to concentrations of credit risk, consist primarily of accounts receivable and cash investments. We require placement of cash in financial institutions evaluated as highly creditworthy. Our customer base includes global light and commercial vehicle manufacturers and a large number of retailers, distributors and installers of automotive aftermarket parts. Our credit evaluation process and the geographical dispersion of sales transactions help to mitigate credit risk concentration. | |||||||||||||||||
Accounts receivable factoring arrangements | |||||||||||||||||
We have entered into factoring agreements with various domestic and European financial institutions to sell our accounts receivable under nonrecourse agreements. These are treated as a sale. The transactions are accounted for as a reduction in accounts receivable as the agreements transfer effective control over and risk related to the receivables to the buyers. We do not service any domestic accounts after the factoring has occurred. We do not have any servicing assets or liabilities. We utilize factoring arrangements as an integral part of financing for us. The cost of factoring such accounts receivable is reflected in the accompanying consolidated statements of operations as interest expense-net with other financing costs. The cost of factoring such accounts receivable for the three months ended September 30, 2013, and 2012, was $1,437,000, and $1,689,000, respectively. The cost of factoring such accounts receivable for the nine months ended September 30, 2013 and 2012, was $4,316,000, and $4,107,000, respectively. Gross amounts factored under these facilities as of September 30, 2013, and December 31, 2012, were $227,992,000, and $183,547,000, respectively. Any change in the availability of these factoring arrangements could have a material adverse effect on our financial condition. |
Inventories
Inventories | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Inventory [Abstract] | ||||||||
Inventory Disclosure | 5. Inventories | |||||||
Net inventories consisted of the following: | ||||||||
September 30, | December 31, | |||||||
(In thousands) | 2013 | 2012 | ||||||
Raw materials | $ | 49,347 | $ | 47,972 | ||||
Core inventory | 38,859 | 31,191 | ||||||
Work-in-process | 7,391 | 9,934 | ||||||
Finished goods | 68,820 | 69,839 | ||||||
$ | 164,417 | $ | 158,936 | |||||
Raw materials also include materials consumed in the manufacturing and remanufacturing process, but not directly incorporated into the finished products. |
Property_plant_and_equipment
Property, plant and equipment | 9 Months Ended |
Sep. 30, 2013 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment Disclosure | 6. Property, plant and equipment |
Depreciation and amortization expense of property, plant, and equipment for the nine months ended September 30, 2013, and 2012, was $14,377,000, and $14,046,000, respectively. |
Goodwill_and_other_intangible_
Goodwill and other intangible assets | 9 Months Ended | |||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure | 7. Goodwill and other intangible assets | |||||||||||||||||||||||
The following table represents the carrying value of other intangible assets: | ||||||||||||||||||||||||
As of September 30, 2013 | As of December 31, 2012 | |||||||||||||||||||||||
(In thousands) | Carrying | Accumulated | Net | Carrying | Accumulated | Net | ||||||||||||||||||
value | amortization | value | amortization | |||||||||||||||||||||
Definite-life intangibles: | ||||||||||||||||||||||||
Intellectual property | $ | 16,377 | $ | 4,395 | $ | 11,982 | $ | 14,370 | $ | 4,082 | $ | 10,288 | ||||||||||||
Customer relationships | 35,500 | 17,069 | 18,431 | 35,500 | 15,150 | 20,350 | ||||||||||||||||||
Customer contract | 98,270 | 83,754 | 14,516 | 95,389 | 74,898 | 20,491 | ||||||||||||||||||
Total | 150,147 | 105,218 | 44,929 | 145,259 | 94,130 | 51,129 | ||||||||||||||||||
Indefinite-life intangibles: | ||||||||||||||||||||||||
Trade names | 48,200 | — | 48,200 | 48,200 | — | 48,200 | ||||||||||||||||||
Intangible assets, net | $ | 198,347 | $ | 105,218 | $ | 93,129 | $ | 193,459 | $ | 94,130 | $ | 99,329 | ||||||||||||
Goodwill | $ | 271,418 | $ | — | $ | 271,418 | $ | 271,418 | $ | — | $ | 271,418 | ||||||||||||
Definite-lived intangible assets are being amortized to reflect the pattern of economic benefit consumed. | ||||||||||||||||||||||||
We perform impairment testing annually or more frequently when events or circumstances indicate that the carrying amount of the above intangibles may be impaired. |
Other_noncurrent_assets
Other noncurrent assets | 9 Months Ended |
Sep. 30, 2013 | |
Other noncurrent assets [Abstract] | |
Other Assets Disclosure | 8. Other noncurrent assets |
Other noncurrent assets primarily consisted of core return rights of $35,501,000 and noncurrent deferred tax assets of $22,893,000 as of September 30, 2013. Other noncurrent assets primarily consisted of core return rights of $33,908,000 and noncurrent deferred tax assets of $32,907,000 as of December 31, 2012. |
Other_current_liabilities_and_
Other current liabilities and accrued expenses | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Other current liabilities and accrued expenses [Abstract] | ||||||||||||||||
Accounts Payable, Accrued Liabilities, and Other Liabilities Disclosure, Current | 9. Other current liabilities and accrued expenses | |||||||||||||||
Other current liabilities and accrued expenses consist of the following: | ||||||||||||||||
September 30, | December 31, | |||||||||||||||
(In thousands) | 2013 | 2012 | ||||||||||||||
Accrued warranty | $ | 26,706 | $ | 23,374 | ||||||||||||
Accrued wages and benefits | 18,595 | 18,531 | ||||||||||||||
Current portion of customer obligations | 7,263 | 9,326 | ||||||||||||||
Rebates, stocklifts, discounts and returns | 20,613 | 15,865 | ||||||||||||||
Current deferred revenue | 1,980 | 2,882 | ||||||||||||||
Other | 40,932 | 38,179 | ||||||||||||||
$ | 116,089 | $ | 108,157 | |||||||||||||
Changes to our current and noncurrent accrued warranty were as follows: | ||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
(In thousands) | 2013 | 2012 | 2013 | 2012 | ||||||||||||
Balance at beginning of period | $ | 29,069 | $ | 31,513 | $ | 27,194 | $ | 30,278 | ||||||||
Provision for warranty | 12,065 | 10,468 | 32,535 | 30,745 | ||||||||||||
Payments and charges against the accrual | (10,732 | ) | (10,396 | ) | (29,327 | ) | (29,438 | ) | ||||||||
Balance at end of period | $ | 30,402 | $ | 31,585 | $ | 30,402 | $ | 31,585 | ||||||||
Other_noncurrent_liabilities
Other noncurrent liabilities | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Other Liabilities, Noncurrent [Abstract] | ||||||||
Accounts Payable, Accrued Liabilities, and Other Liabilities Disclosure, Noncurrent | 10. Other noncurrent liabilities | |||||||
Other noncurrent liabilities consist of the following: | ||||||||
September 30, | December 31, | |||||||
(In thousands) | 2013 | 2012 | ||||||
Customer obligations, net of current portion | $ | 3,398 | $ | 3,689 | ||||
Noncurrent deferred revenue | 4,940 | 5,755 | ||||||
Other | 21,125 | 19,744 | ||||||
$ | 29,463 | $ | 29,188 | |||||
Restructuring_and_other_charge
Restructuring and other charges | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||
Restructuring and Related Activities [Abstract] | ||||||||||||||||||||
Restructuring and Related Activities Disclosure | ||||||||||||||||||||
11 | Restructuring and other charges | |||||||||||||||||||
Total restructuring and other charges of $4,263,000 were recorded for the nine months ended September 30, 2013. These charges consisted of $2,987,000 of employee termination benefits, and $1,276,000 of other exit costs. The severance charges are related to the closure of our Mezokovesd, Hungary plant, restructuring actions in our China operations in association with our acquisition of our noncontrolling interest in our majority-owned Chinese joint venture (see Note 21), reductions in force in our North American facilities, and lease termination costs. | ||||||||||||||||||||
Total restructuring and other charges of $8,964,000 were recorded during the nine months ended September 30, 2012. These charges consisted of $4,517,000 of employee termination benefits, and $368,000 of adjustments to lease termination and other exit costs, other charges of $1,800,000 and fixed asset impairment charges of $2,279,000. The charges are related to reductions in force in Mexico and Europe, and exit costs related to our Mexico, Europe and Virginia facilities. During the second quarter of 2012, the company engaged a consulting firm to assist in the analysis of the North America operations. The other charges are related to the consulting fees and other related expenses. The fixed asset impairment charges are related to the anticipated closure of our facilities in Mexico and Europe. | ||||||||||||||||||||
The following table summarizes the activity in our accrual for restructuring and other charges for the three and nine month periods ended September 30, (in thousands): | ||||||||||||||||||||
2013 | Termination | Exit | Other charges | Total | ||||||||||||||||
benefits | costs | |||||||||||||||||||
Accrual at December 31, 2012 | $ | 3,573 | $ | 106 | $ | — | $ | 3,679 | ||||||||||||
Provision | 370 | 311 | — | 681 | ||||||||||||||||
Payments | (1,832 | ) | (331 | ) | — | (2,163 | ) | |||||||||||||
Accrued at March 31, 2013 | $ | 2,111 | $ | 86 | $ | — | $ | 2,197 | ||||||||||||
Provision | 1,196 | 932 | — | 2,128 | ||||||||||||||||
Payments | (1,870 | ) | (916 | ) | — | (2,786 | ) | |||||||||||||
Accrued at June 30, 2013 | $ | 1,437 | $ | 102 | $ | — | $ | 1,539 | ||||||||||||
Provision | 1,421 | 33 | — | 1,454 | ||||||||||||||||
Payments | (1,086 | ) | (58 | ) | — | (1,144 | ) | |||||||||||||
Accrued at September 30, 2013 | $ | 1,772 | $ | 77 | $ | — | $ | 1,849 | ||||||||||||
2012 | Termination | Exit | Other charges | Total | ||||||||||||||||
benefits | costs | |||||||||||||||||||
Accrual at December 31, 2011 | $ | 2,539 | $ | 386 | $ | — | $ | 2,925 | ||||||||||||
Provision | 1,686 | 12 | — | 1,698 | ||||||||||||||||
Payments | (1,449 | ) | (361 | ) | — | (1,810 | ) | |||||||||||||
Accrued at March 31, 2012 | $ | 2,776 | $ | 37 | $ | — | $ | 2,813 | ||||||||||||
Provision | (138 | ) | 230 | 1,800 | 1,892 | |||||||||||||||
Payments | (1,386 | ) | (64 | ) | (1,800 | ) | (3,250 | ) | ||||||||||||
Accrued at June 30, 2012 | $ | 1,252 | $ | 203 | $ | — | $ | 1,455 | ||||||||||||
Provision | 2,969 | 126 | — | 3,095 | ||||||||||||||||
Payments | (409 | ) | (202 | ) | — | (611 | ) | |||||||||||||
Accrued at September 30, 2012 | $ | 3,812 | $ | 127 | $ | — | $ | 3,939 | ||||||||||||
Significant components of restructuring and other charges were as follows (in thousands): | ||||||||||||||||||||
Total | Expense incurred in | Estimated | ||||||||||||||||||
expected | Nine | Twelve | Twelve | future | ||||||||||||||||
costs | months ended | months ended | months ended | expense | ||||||||||||||||
September 30, | December 31, | December 31, | ||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||
2013 Activities | ||||||||||||||||||||
Severance | $ | 2,245 | $ | 2,245 | $ | — | $ | — | $ | — | ||||||||||
Exit costs | 1,027 | 527 | — | — | 500 | |||||||||||||||
$ | 3,272 | $ | 2,772 | $ | — | $ | — | $ | 500 | |||||||||||
2012 Activities | ||||||||||||||||||||
Severance | $ | 4,512 | $ | 742 | $ | 3,738 | $ | — | $ | 32 | ||||||||||
Exit costs | 1,219 | 749 | 410 | — | 60 | |||||||||||||||
Other charges | 1,687 | — | 1,687 | — | — | |||||||||||||||
$ | 7,418 | $ | 1,491 | $ | 5,835 | $ | — | $ | 92 | |||||||||||
2011 Activities | ||||||||||||||||||||
Severance | $ | 4,518 | $ | — | $ | 1,635 | $ | 2,883 | $ | — | ||||||||||
Exit costs | 801 | — | 241 | 560 | — | |||||||||||||||
$ | 5,319 | $ | — | $ | 1,876 | $ | 3,443 | $ | — | |||||||||||
Debt
Debt | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Debt Disclosure [Abstract] | ||||||||
Debt Disclosure | 12. Debt | |||||||
Borrowings under long-term debt arrangements, net of discounts, consisted of the following: | ||||||||
September 30, | December 31, | |||||||
(In thousands) | 2013 | 2012 | ||||||
Asset-Based Revolving Credit Facility, First Amendment-Maturity date of September 5, 2018 | $ | — | $ | — | ||||
Term B Loan-Maturity date of December 17, 2016 | — | 284,892 | ||||||
Amended and Restated Term B Loan-Maturity date of March 5, 2020 | 295,667 | — | ||||||
Total Senior Credit Facility and Notes | 295,667 | 284,892 | ||||||
Capital leases | 2,479 | 3,053 | ||||||
Less current maturities | (3,542 | ) | (3,470 | ) | ||||
Long-term debt less current maturities | $ | 294,604 | $ | 284,475 | ||||
Future maturities of long-term debt outstanding at September 30, 2013, including capital lease obligations, and excluding original issue discount, in thousands, consist of the following: | ||||||||
2013 (remaining) | $ | 1,012 | ||||||
2014 | 3,390 | |||||||
2015 | 3,407 | |||||||
2016 | 3,423 | |||||||
2017 | 3,353 | |||||||
Thereafter | 285,646 | |||||||
On March 5, 2013, we entered into a First Amendment to our existing ABL Revolver Credit Agreement ("ABL First Amendment") to extend the maturity date of the Asset-Based Revolving Credit Facility ("ABL") from December 17, 2015 to September 5, 2018 and reduce the borrowing rate. The ABL First Amendment bears an interest rate to a defined Base Rate plus 0.50%-1.00% per year or, at our election, at an applicable LIBOR Rate plus 1.50%-2.00% per year and is paid monthly. The ABL First Amendment maintains the current availability at $95,000,000, but may be increased, under certain circumstances, by $20,000,000. The ABL First Amendment is secured by substantially all domestic accounts receivable and inventory. At September 30, 2013, the ABL First Amendment balance was zero. Based upon the collateral supporting the ABL First Amendment, the amount borrowed, and the outstanding letters of credit of $2,860,000, there was additional availability for borrowing of $70,196,000 on September 30, 2013. We will incur an unused commitment fee of 0.375% on the unused amount of commitments under the ABL First Amendment. | ||||||||
On March 5, 2013, we entered into a $300,000,000 Amended and Restated Term B Loan Credit Agreement ("Amended and Restated Term B Loan") to refinance the existing $286,978,000 Term B Loan, extend the maturity from December 17, 2016 to March 5, 2020, and reduce the borrowing rate. The Amended and Restated Term B Loan bears an interest rate consisting of LIBOR (subject to a floor of 1.25%) plus 3.00% per year with an original issue discount of $750,000. The Amended and Restated Term B Loan also contains an option to increase the borrowing provided certain conditions are satisfied, including maintaining a maximum leverage ratio. The Amended and Restated Term B Loan is secured by a first priority lien on the stock of our subsidiaries and substantially all domestic assets other than accounts receivable and inventory pledged to the ABL First Amendment. Principal payments in the amount of $750,000 are due at the end of each calendar quarter with termination and final payment no later than March 5, 2020. The Amended and Restated Term B Loan is subject to an excess cash calculation which may require the payment of additional principal on an annual basis. At September 30, 2013, the average borrowing rate, including the impact of the interest rate swaps, was 4.25%. As a result of the refinancing of our Term B Loan syndication, we recorded a loss on extinguishment of debt and refinancing fees of $4,256,000 during the quarter ended March 31, 2013. | ||||||||
As of September 30, 2013, the estimated fair value of our Amended and Restated Term B Loan was $298,867,000. The estimated fair value was $3,200,000 more than the carrying value. As of December 31, 2012, the estimated fair values of our Term B Loan was $290,029,000. The estimated fair value was $5,137,000 more than the carrying value. The Level 2 fair market values are based on established market prices as of September 30, 2013 and December 31, 2012. The fair value estimates do not necessarily reflect the values we could realize in the current markets. Because of their short-term nature or variable interest rate, we believe the carrying value for short-term debt and the revolving credit agreement closely approximates their fair value. | ||||||||
All of our credit agreements contain various covenants and representations that are customary for transactions of this nature. We were in compliance with all covenants as of September 30, 2013. The credit agreements contain various restrictive covenants, which include, among other things: (i) a maximum leverage ratio; (ii) a minimum interest coverage ratio; (iii) mandatory prepayments upon certain asset sales and debt issuances; and (iv) limitations on the payment of dividends in excess of a specified amount. The term loan also includes events of default customary for a facility of this type, including a cross-default provision under which the lenders may declare the loan in default if we (i) fail to make a payment when due under any debt having a principal amount greater than $5.0 million or (ii) breach any other covenant in any such debt as a result of which the holders of such debt are permitted to accelerate its maturity. | ||||||||
Short-term debt | ||||||||
We have revolving credit facilities with four Korean banks with a total facility amount of approximately $16,735,000 of which $3,254,000 is borrowed at average interest rates of 3.44% at September 30, 2013. In Hungary, there is a revolving credit facility with two banks for a credit facility of $4,240,000 of which $18,000 is borrowed at average interest rates of 2.28% at September 30, 2013. | ||||||||
Capital leases | ||||||||
Capital leases have been capitalized using nominal interest rates ranging from 4.50% to 15.10% as determined by the dates we entered into the leases. We had assets under capital leases of approximately $3,582,000 at September 30, 2013 and approximately $3,883,000 at December 31, 2012, net of accumulated amortization. |
Stockholders_equity
Stockholders' equity | 9 Months Ended |
Sep. 30, 2013 | |
Stockholders' Equity Attributable to Parent [Abstract] | |
Stockholders' Equity Note Disclosure | 13. Stockholders' equity |
Common stock | |
On December 12, 2012, we amended our Amended and Restated Certificate of Incorporation. The amendment authorizes the Company to issue 280,000,000 shares, consisting of 240,000,000 shares of common stock, par value $0.0001 per share, and 40,000,000 shares of preferred stock, par value $0.0001 per share. As of September 30, 2013, there were 32,006,216 common stock shares outstanding and no preferred stock shares outstanding. | |
The holders of common stock are entitled to one vote on all matters properly submitted on which the common stockholders are entitled to vote. | |
Treasury stock | |
During the nine months ended September 30, 2013, we withheld 67,087 shares at cost, or $1,248,000, to satisfy tax obligations for vesting of restricted stock shares granted to our employees under the Remy International, Inc. Omnibus Incentive Plan, or "Omnibus Incentive Plan". | |
Dividend payments | |
Our Board of Directors declared cash dividends of ten cents ($0.10) per share in January 2013, April 2013 and August 2013, respectively, and we paid amounts totaling $9,462,000 during the nine months ended September 30, 2013. As of September 30, 2013, a dividend payable of $444,000 is recorded for unvested restricted stock and is payable upon vesting. | |
On October 29, 2013, our Board of Directors declared a quarterly cash dividend of ten cents ($0.10) per share, payable on November 27, 2013, to stockholders of record as of November 13, 2013. |
Reclassifications_out_of_accum
Reclassifications out of accumulated other comprehensive income (loss) (Notes) | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||
Reclassifications Out of Accumulated Other Comprehensive Income (Loss) [Abstract] | |||||||||||||||||||||||||
Comprehensive Income (Loss) Note | 14. Reclassifications out of accumulated other comprehensive income (loss) | ||||||||||||||||||||||||
The following table discloses the changes in each component of accumulated other comprehensive income, net of tax for the three and nine month periods ended September 30, 2013 (in thousands): | |||||||||||||||||||||||||
Foreign currency translation adjustment | Unrealized gains (losses) on currency hedges | Unrealized gains (losses) on commodity hedges | Interest rate swaps | Employee benefit plan adjustment | Accumulated other comprehensive income (loss) | ||||||||||||||||||||
Balances at December 31, 2012 | $ | (19,860 | ) | $ | 3,426 | $ | (6,316 | ) | $ | (1,574 | ) | $ | (25,983 | ) | $ | (50,307 | ) | ||||||||
Other comprehensive income (loss) before reclassifications | (3,172 | ) | 513 | (1,282 | ) | (270 | ) | 102 | (4,109 | ) | |||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | — | (1,081 | ) | (48 | ) | — | 346 | (783 | ) | ||||||||||||||||
Balances at March 31, 2013 | (23,032 | ) | 2,858 | (7,646 | ) | (1,844 | ) | (25,535 | ) | (55,199 | ) | ||||||||||||||
Other comprehensive income (loss) before reclassifications | (2,258 | ) | (2,498 | ) | (2,991 | ) | 894 | (154 | ) | (7,007 | ) | ||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | — | (1,104 | ) | 578 | — | 76 | (450 | ) | |||||||||||||||||
Balances at June 30, 2013 | $ | (25,290 | ) | $ | (744 | ) | $ | (10,059 | ) | $ | (950 | ) | $ | (25,613 | ) | $ | (62,656 | ) | |||||||
Other comprehensive income (loss) before reclassifications | 5,566 | 3,472 | 1,762 | (63 | ) | (105 | ) | 10,632 | |||||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | — | (1,556 | ) | 952 | — | 210 | (394 | ) | |||||||||||||||||
Balances at September 30, 2013 | $ | (19,724 | ) | $ | 1,172 | $ | (7,345 | ) | $ | (1,013 | ) | $ | (25,508 | ) | $ | (52,418 | ) | ||||||||
The following table discloses the changes in each component of accumulated other comprehensive income, net of tax for the three and nine month periods ended September 30, 2012 (in thousands): | |||||||||||||||||||||||||
Foreign currency translation adjustment | Unrealized gains (losses) on currency hedges | Unrealized gains (losses) on commodity hedges | Interest rate swaps | Employee benefit plan adjustment | Accumulated other comprehensive income (loss) | ||||||||||||||||||||
Balances at December 31, 2011 | $ | (22,624 | ) | $ | (9,513 | ) | $ | (8,858 | ) | $ | (1,574 | ) | $ | (23,161 | ) | $ | (65,730 | ) | |||||||
Other comprehensive income (loss) before reclassifications | 2,390 | 4,390 | 3,593 | — | 45 | 10,418 | |||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | — | 1,185 | 787 | — | (106 | ) | 1,866 | ||||||||||||||||||
Balances at March 31, 2012 | (20,234 | ) | (3,938 | ) | (4,478 | ) | (1,574 | ) | (23,222 | ) | (53,446 | ) | |||||||||||||
Other comprehensive income (loss) before reclassifications | (4,713 | ) | (152 | ) | (3,417 | ) | — | 21 | (8,261 | ) | |||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | — | 1,434 | 926 | — | (231 | ) | 2,129 | ||||||||||||||||||
Balances at June 30, 2012 | $ | (24,947 | ) | $ | (2,656 | ) | $ | (6,969 | ) | $ | (1,574 | ) | $ | (23,432 | ) | $ | (59,578 | ) | |||||||
Other comprehensive income (loss) before reclassifications | 2,226 | 4,158 | 599 | — | (62 | ) | 6,921 | ||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | — | 529 | 310 | — | 40 | 879 | |||||||||||||||||||
Balances at September 30, 2012 | $ | (22,721 | ) | $ | 2,031 | $ | (6,060 | ) | $ | (1,574 | ) | $ | (23,454 | ) | $ | (51,778 | ) | ||||||||
The following table discloses the effect of reclassifications of accumulated other comprehensive income on the accompanying consolidated statement of operations (in thousands): | |||||||||||||||||||||||||
Details about Accumulated Other Comprehensive Income (Loss) Components | Three months ended September 30, | Affected Line Item in the Statement Where Net Income is Presented | |||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Gains (losses) on cash flow hedges: | |||||||||||||||||||||||||
Foreign currency contracts | $ | 2,068 | $ | (580 | ) | Cost of goods sold | |||||||||||||||||||
Commodity contracts | (1,563 | ) | (1,608 | ) | Cost of goods sold | ||||||||||||||||||||
505 | (2,188 | ) | Total before tax | ||||||||||||||||||||||
99 | 1,349 | Tax benefit | |||||||||||||||||||||||
$ | 604 | $ | (839 | ) | Net of tax | ||||||||||||||||||||
Amortization of employee benefit plan costs: | |||||||||||||||||||||||||
Prior service costs | $ | 454 | $ | 419 | Selling, general and administrative expenses | ||||||||||||||||||||
Net actuarial loss | (800 | ) | (188 | ) | Selling, general and administrative expenses | ||||||||||||||||||||
(346 | ) | 231 | Total before tax | ||||||||||||||||||||||
136 | (271 | ) | Tax benefit (expense) | ||||||||||||||||||||||
$ | (210 | ) | $ | (40 | ) | Net of tax | |||||||||||||||||||
Total reclassifications for the period | $ | 394 | $ | (879 | ) | Net of tax | |||||||||||||||||||
The following table discloses the effect of reclassifications of accumulated other comprehensive income on the accompanying consolidated statement of operations (in thousands): | |||||||||||||||||||||||||
Details about Accumulated Other Comprehensive Income (Loss) Components | Nine months ended September 30, | Affected Line Item in the Statement Where Net Income is Presented | |||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Gains (losses) on cash flow hedges: | |||||||||||||||||||||||||
Foreign currency contracts | $ | 4,887 | $ | (3,627 | ) | Cost of goods sold | |||||||||||||||||||
Commodity contracts | (2,432 | ) | (3,323 | ) | Cost of goods sold | ||||||||||||||||||||
2,455 | (6,950 | ) | Total before tax | ||||||||||||||||||||||
(196 | ) | 1,777 | Tax benefit (expense) | ||||||||||||||||||||||
$ | 2,259 | $ | (5,173 | ) | Net of tax | ||||||||||||||||||||
Amortization of employee benefit plan costs: | |||||||||||||||||||||||||
Prior service costs | $ | 1,362 | $ | 1,256 | Selling, general and administrative expenses | ||||||||||||||||||||
Net actuarial loss | (2,400 | ) | (689 | ) | Selling, general and administrative expenses | ||||||||||||||||||||
(1,038 | ) | 567 | Total before tax | ||||||||||||||||||||||
406 | (271 | ) | Tax benefit (expense) | ||||||||||||||||||||||
$ | (632 | ) | $ | 296 | Net of tax | ||||||||||||||||||||
Total reclassifications for the period | $ | 1,627 | $ | (4,877 | ) | Net of tax | |||||||||||||||||||
Income_taxes
Income taxes | 9 Months Ended |
Sep. 30, 2013 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure | 15. Income taxes |
We compute on a quarterly basis an estimated annual effective tax rate considering ordinary income and related income tax expense. Ordinary income refers to income (loss) before income tax expense excluding significant, unusual, or infrequently occurring items. The tax effect of an unusual or infrequently occurring item is recorded in the interim period in which it occurs. To the extent we cannot reliably estimate annual projected taxes for a taxing jurisdiction, taxes on ordinary income for such a jurisdiction are reported in the period in which they are incurred. Other items included in income tax expense in the periods in which they occur include the cumulative effect of changes in tax laws or rates, foreign exchange gains and losses, adjustments to uncertain tax positions, and adjustments to our valuation allowance due to changes in judgment regarding the realizability of deferred tax assets in future years. | |
Income tax expense of $5,292,000 for the three months ended September 30, 2013, consisted of deferred U.S. federal tax expense of $1,356,000, domestic state and local income tax expense of $961,000, and tax expense in various foreign jurisdictions of $2,975,000. Income tax benefit of $85,310,000 for the three months ended September 30, 2012, consisted of U.S. federal tax benefit of $84,705,000, domestic state and local tax expense of $22,000, and tax benefit in various foreign jurisdictions of $627,000. | |
Income tax expense of $11,967,000 for the nine months ended September 30, 2013, consisted of deferred U.S. federal tax expense of $2,844,000, domestic state and local income tax expense of $793,000, and tax expense in various foreign jurisdictions of $8,330,000. Income tax benefit of $74,410,000 for the nine months ended September 30, 2012, consisted of U.S. federal tax benefit of $84,705,000, domestic state and local tax expense of $655,000, and tax expenses in various foreign jurisdictions of $9,640,000. | |
We and our subsidiaries file income tax returns in the U.S. federal jurisdiction, and various state and foreign jurisdictions. We are no longer subject to U.S. federal tax examinations for years before 2007 or state and local years before 2007, with limited exceptions. For domestic purposes, the tax attributes carried forward could be adjusted through the examination process and are subject to examination 3 years from the date of utilization. Furthermore, we are no longer subject to income tax examinations in major foreign tax jurisdictions for years prior to 2007, with limited exceptions. | |
We have total unrecognized tax benefits of $11,769,000 and $10,350,000 that have been recorded as liabilities as of September 30, 2013 and December 31, 2012, respectively, and we are uncertain as to if or when such amounts may be settled. During the three months ended September 30, 2013 and 2012, we recorded uncertain tax benefits of $210,000 and uncertain tax positions of $225,000, respectively. During the nine months ended September 30, 2013 and 2012, we recorded uncertain tax positions of $1,419,000 and $775,000, respectively. | |
As part of the review in determining the need for a valuation allowance, we assess the potential release of existing valuation allowances. In performing our analysis during the third quarter of 2012, management concluded that the weight of positive evidence outweighed the negative evidence related to the United States tax jurisdiction. During the third quarter of 2012, we reached the conclusion that the net deferred tax asset in the United States was more likely than not to be utilized. As such, the valuation allowance previously recorded against the net deferred tax assets in the United States was reversed resulting in an income tax benefit of $84,705,000 during the third quarter of 2012. | |
The effective income tax rate for the three and nine months ended September 30, 2013, differs from the U.S. federal income tax rate primarily due to effect on foreign taxable income, tax credits and tax assessments against the U.S. net income reported in the financial statements. The effective income tax rate for the three and nine months ended September 30, 2012, differs from the U.S. federal income tax rate primarily due to the effect on foreign taxable income and the valuation allowance release against the U.S. net income reported in the financial statements. | |
We review the likelihood that we will realize the benefit of our deferred tax assets and, therefore, the need for valuation allowances on a quarterly basis, or more frequently if events indicate that a review is required. In determining the requirement for a valuation allowance, the historical and projected financial results of the legal entity or consolidated group recording the net deferred tax asset is considered, along with all other available positive and negative evidence. We utilize a rolling 12 quarters of pre-tax results adjusted for significant permanent book to tax differences as a measure of cumulative results in recent years. The factors considered by management in its determination of the probability of the realization of the deferred tax assets include but are not limited to the following: recent adjusted historical financial results, historical taxable income, projected future taxable income, the expected timing of the reversals of existing temporary differences and tax planning strategies. If, based upon the weight of available evidence, it is more likely than not the deferred tax assets will not be realized, a valuation allowance is recorded. If operating results improve or deteriorate on a sustained basis, our conclusions regarding the need for a valuation allowance could change, resulting in either the reversal or initial recognition of a valuation allowance in the future, which could have a significant impact on income tax expense in the period recognized and subsequent periods. |
Employee_benefit_plans
Employee benefit plans | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | ||||||||||||||||
Pension and Other Postretirement Benefits Disclosure | 16. Employee benefit plans | |||||||||||||||
The components of expense for the plans were as follows (in thousands): | ||||||||||||||||
Pension benefits: | ||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
Components of expense | 2013 | 2012 | 2013 | 2012 | ||||||||||||
Service costs | $ | 273 | $ | 73 | $ | 754 | $ | 219 | ||||||||
Interest costs | 693 | 653 | 2,066 | 1,958 | ||||||||||||
Expected return on plan assets | (665 | ) | (534 | ) | (1,982 | ) | (1,631 | ) | ||||||||
Recognized net actuarial loss | 344 | 311 | 1,032 | 1,058 | ||||||||||||
Net periodic pension cost | $ | 645 | $ | 503 | $ | 1,870 | $ | 1,604 | ||||||||
Postretirement health care and life insurance plans: | ||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
Components of expense | 2013 | 2012 | 2013 | 2012 | ||||||||||||
Interest costs | $ | 19 | $ | 24 | $ | 58 | $ | 73 | ||||||||
Amortization of prior service cost | (454 | ) | (419 | ) | (1,362 | ) | (1,256 | ) | ||||||||
Recognized net actuarial loss (gain) | 456 | (123 | ) | 1,368 | (369 | ) | ||||||||||
Net periodic cost (benefit) | $ | 21 | $ | (518 | ) | $ | 64 | $ | (1,552 | ) | ||||||
Cash flows - employee benefit plans | ||||||||||||||||
We contributed $2,585,000 and $2,094,000 to our pension plans during the nine months ended September 30, 2013 and 2012, respectively. We expect to contribute a total of $1,748,000 to our U.S. pension plans and $1,717,000 to our International pension plans in 2013. The postretirement health care plan is funded as benefits are paid. |
Stockbased_compensation
Stock-based compensation | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Share-based Compensation [Abstract] | ||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments | ||||||||||||||||
17 | Stock-based compensation | |||||||||||||||
On February 14, 2013, we filed a Form S-8 to register 5,500,000 shares which may be issued pursuant to the Omnibus Incentive Plan. The Omnibus Incentive Plan became effective on October 27, 2010, was amended on March 24, 2011, and permits our Compensation Committee to grant nonqualified stock options, incentive stock options, stock appreciation rights, restricted stock, restricted stock units, performance shares, performance units and other cash or share based awards to our employees and non-employee directors. As of September 30, 2013, there were 3,425,416 shares available to be issued under the Omnibus Incentive Plan. | ||||||||||||||||
During the nine months ended September 30, 2013, executive officers and other key employees received restricted stock awards of 224,507 common shares with a weighted average grant date value of $18.47, based on the closing price of our common stock on the respective grant date as reported on the NASDAQ Stock Market. These awards are 50% time-based and 50% performance-based. The time-based restricted shares vest equally over a three-year period and one-third of the performance-based restricted shares will be available to vest for each of the calendar years 2013, 2014 and 2015 based on a target operating income for each of the years. Additionally, executive officers and other key employees were granted 234,675 stock option awards which vest equally over a three-year period with a term of seven years and a weighted average exercise price of $18.47. | ||||||||||||||||
Also during the nine months ended September 30, 2013, our Board of Directors received restricted stock awards of 32,164 common shares and stock option awards of 33,618 common shares. One-half of the restricted stock shares and stock options granted to the Board of Directors vest at each anniversary of the grant date. Restricted stock granted to the Board of Directors were valued at $18.50, which was the closing price of our common stock on the grant date as reported on the NASDAQ Stock Market. Stock options granted to the Board of Directors have a term of seven years and an exercise price of $18.50. We estimated the grant date fair value of all stock options granted during the nine months ended September 30, 2013 using the Black-Scholes valuation model. The weighted average valuation per share was $7.58 based on the following assumptions: Risk-free interest rate: 0.86%, Dividend Yield: 2.16%, Expected Volatility: 56.70% and Expected Term: 5 years. | ||||||||||||||||
Noncash compensation expense related to all types of awards was recognized for the three and nine months ended September 30, as follows: | ||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
(In thousands) | 2013 | 2012 | 2013 | 2012 | ||||||||||||
Stock-based compensation expense | $ | 1,648 | $ | 1,883 | $ | 4,894 | $ | 5,419 | ||||||||
If factors change and we employ different assumptions, stock-based compensation expense may differ significantly from what we have recorded in the past. If there are any modifications or cancellations of the underlying unvested securities, we may be required to accelerate, increase or cancel any remaining unearned stock-based compensation expense. Future stock-based compensation expense and unearned stock-based compensation will increase to the extent that we grant additional equity awards to employees or we assume unvested equity awards in connection with acquisitions. |
Business_segment_and_geographi
Business segment and geographical information | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Segments, Geographical Areas [Abstract] | ||||||||||||||||
Segment Reporting Disclosure | 18. Business segment and geographical information | |||||||||||||||
We manage our business and operate in a single reportable business segment. | ||||||||||||||||
We are a multi-national corporation with operations in many countries, including the United States, Canada, Mexico, Brazil, China, Hungary, South Korea, United Kingdom, Belgium and Tunisia. As a result, our financial results could be significantly affected by factors such as changes in foreign currency exchange rates or weak economic conditions in the foreign markets where we distribute our products. Our operating results are exposed to changes in exchange rates between the U.S. dollar and non-U.S. currencies. Exposure to variability in foreign currency exchange rates is managed primarily through the use of natural hedges, whereby funding obligations and assets are both denominated in the local currency, and through selective currency hedges. From time to time, we enter into exchange agreements to manage our exposure arising from fluctuating exchange rates related to specific transactions. Refer to Note 4. Sales are attributed to geographic locations based on the point of sale. | ||||||||||||||||
Information about our net sales by region was as follows: | ||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
(In thousands) | 2013 | 2012 | 2013 | 2012 | ||||||||||||
Net sales to external customers: | ||||||||||||||||
United States | $ | 172,706 | $ | 188,013 | $ | 550,728 | $ | 579,981 | ||||||||
Europe | 21,571 | 25,201 | 68,092 | 79,722 | ||||||||||||
Other Americas | 14,663 | 14,074 | 45,457 | 42,127 | ||||||||||||
Asia Pacific | 53,892 | 50,113 | 162,631 | 163,452 | ||||||||||||
Total net sales | $ | 262,832 | $ | 277,401 | $ | 826,908 | $ | 865,282 | ||||||||
Other_commitments_and_continge
Other commitments and contingencies | 9 Months Ended |
Sep. 30, 2013 | |
Other commitments and contingencies [Abstract] | |
Commitments and Contingencies Disclosure | 19. Other commitments and contingencies |
We are party to various legal actions and administrative proceedings and subject to various claims arising in the ordinary course of business, including those relating to commercial transactions, product liability, safety, health, taxes, environmental and other matters. We review these matters on an ongoing basis and follow the provisions of FASB ASC Topic 450, Contingencies, when making accrual and disclosure decisions. For legal proceedings where it has been determined that a loss is both probable and reasonably estimable, a liability based on known facts and which represents our best estimate has been recorded in our accompanying consolidated financial statements. We believe that the ultimate liability, if any, in excess of amounts already provided for in our accompanying consolidated financial statements on the disposition of these matters and the matters discussed below would not have a material adverse effect on our financial position. | |
Remy, Inc. vs. Tecnomatic S.p.A. | |
On September 12, 2008, Remy International, Inc. filed suit against Tecnomatic in the U.S. District Court, Southern District of Indiana, Indianapolis Division (Civil Action No.: 1:08-CV-1227-SEB-JMS), titled Remy, Inc. vs. Tecnomatic S.p.A., for breach of contract, among other claims, with respect to a machine Tecnomatic manufactured for us to build stators. On December 9, 2008, Tecnomatic filed a counterclaim in the amount of $111,000. | |
On March 9, 2011, Tecnomatic filed a lawsuit in U.S. District Court, N. D. of Illinois, against Remy International, Inc., its Mexican subsidiaries and two other entities alleging breach of confidentiality agreement, misrepresentation and misappropriation of technology and requested damages of $110,000,000. We believe this action is without merit and is an attempt to push us to settle the prior case. On June 27, 2011, the Illinois Court granted our motion to transfer the case to U.S. District Court, Southern District of Indiana, Indianapolis Division, and the two pending actions were merged by the Indiana Court. In July 2012, the Indiana Court dismissed a significant majority of Tecnomatic's original claims, and denied Tecnomatic's subsequent request to bring certain proposed claims against us. In another Court ruling on Tecnomatic's Motion to Reconsider on June 21, 2013, the Indiana Court upheld its July 2012 dismissal of all of Tecnomatic's claims, except for the reinstatement of a trade secret claim against a third party vendor. On March 25, 2013, Tecnomatic filed a First Amended Complaint in which it named certain current and former Remy employees as individual defendants. Tecnomatic filed a Second Amended Complaint, together with a motion for leave to file a Third Amended Complaint, on July 12, 2013. Tecnomatic then filed a motion for leave to amend its pleadings in conjunction with a proposed Fourth Amended Complaint on September 10, 2013. We filed a reply in support of partial motion to dismiss Tecnomatic's Second Amended Complaint on September 24, 2013, and we anticipate filing a response to Tecnomatic's Second Amended Complaint during the fourth quarter of 2013. On October 15, 2013, Tecnomatic filed a motion for leave to amend its pleadings in conjunction with a proposed Fifth Amended Complaint. No trial date has been set, but it is anticipated to commence during the second quarter of 2015. Due to the early stage of this case, it is not possible to make a meaningful estimate of the amount or range of loss to the Company, if any, that could result from this case at this time. As such, we have no amounts accrued as of September 30, 2013 for this case. We intend to vigorously defend this case. |
Executive_officer_separation_N
Executive officer separation (Notes) | 9 Months Ended |
Sep. 30, 2013 | |
Executive officer separation [Abstract] | |
Other Income and Other Expense Disclosure | 20. Executive officer separation |
On January 31, 2013, we entered into a Transition, Noncompetition and Release Agreement (the "Agreement") with John H. Weber, our former President and Chief Executive Officer, effective February 28, 2013. Pursuant to the terms of the Agreement, Mr. Weber received a lump sum cash payment of $7,000,000, resulting in a decrease to diluted earnings per share of $0.14, net of tax, for the nine months ended September 30, 2013. The expense related to this lump sum cash payment is included in selling, general and administrative expenses in the accompanying unaudited consolidated statement of operations for the nine months ended September 30, 2013. |
Purchase_of_noncontrolling_int
Purchase of noncontrolling interest (Notes) | 9 Months Ended |
Sep. 30, 2013 | |
Noncontrolling Interest [Abstract] | |
Noncontrolling Interest Disclosure | 21. Purchase of noncontrolling interest |
Since 2004, we have owned a 51% controlling interest in our majority-owned Chinese joint venture, Remy Hubei Electric Co. Ltd. ("REH"). In June 2013, we acquired the remaining 49% noncontrolling ownership interest of REH for $14,628,000, consisting of cash payment of $8,107,000 and dividends declared to the noncontrolling interest holder in excess of their ownership percentage of $6,521,000. As a result of this transaction, REH became a wholly-owned subsidiary of Remy on June 24, 2013. During the quarter ended June 30, 2013, we recorded an adjustment to our additional paid-in capital of $9,166,000 in connection with the acquisition of the noncontrolling interest. |
Summary_of_significant_account1
Summary of significant accounting policies (Policies) | 9 Months Ended |
Sep. 30, 2013 | |
Accounting Policies [Abstract] | |
Use of Estimates, Policy | Use of estimates |
The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expense during the year. Actual results could differ from these estimates. | |
Government Grants, Policy | Government grants |
We record government grants when there is reasonable assurance that the grant will be received and we will comply with the conditions attached to the grants received. Grants related to income are recorded as an offset to the related expense in the accompanying statements of operations. Grants related to assets are recorded as deferred revenue and recognized on a straight-line basis over the useful life of the related asset. We continue to evaluate our compliance with the conditions attached to the related grants. | |
Trade and Other Accounts Receivable, Policy | Trade accounts receivable and allowance for doubtful accounts |
Trade accounts receivable is stated at net realizable value, which approximates fair value. Substantially all of our trade accounts receivable are due from customers in the original equipment and aftermarket automotive industries, both domestically and internationally. Trade accounts receivable includes notes receivable of $27,205,000 and $29,091,000 as of September 30, 2013 and December 31, 2012, respectively. As of September 30, 2013, notes receivables and accounts payable included commercial paper amounts endorsed or transferred to trade suppliers with recourse of $3,775,000. Trade accounts receivable is reduced by an allowance for amounts that are expected to become uncollectible in the future and for disputed items. We perform periodic credit evaluations of our customers' financial condition and generally do not require collateral. We maintain allowances for doubtful customer accounts for estimated losses resulting from the inability of our customers to make required payments. The allowance for doubtful accounts is developed based on several factors including customers' credit quality, historical write-off experience and any known specific issues or disputes which exist as of the balance sheet date. If the financial condition of our customers were to deteriorate, resulting in an impairment of their ability to make payments, additional allowances may be required. | |
Standard Product Warranty, Policy | Warranty |
We provide certain warranties relating to quality and performance of our products. An allowance for the estimated future cost of product warranties and other defective product returns is based on management's estimate of product failure rates and customer eligibility. If these factors differ from management's estimates, revisions to the estimated warranty liability may be required. The specific terms and conditions of the warranties vary depending upon the customer and the product sold. | |
Earnings Per Share, Policy | Earnings per share |
Basic earnings per share is calculated by dividing net earnings by the weighted average shares outstanding during the period. Diluted earnings per share is based on the weighted average number of shares outstanding plus the assumed issuance of common shares and related adjustment to net income attributable to common stockholders related to all potentially dilutive securities. For the three months ended September 30, 2013 and 2012, in applying the treasury stock method, equivalent shares of unvested restricted stock and restricted stock units of 143,376 and 355,268 shares, respectively, were included in the weighted average shares outstanding in the diluted calculation. For the nine months ended September 30, 2013 and 2012, in applying the treasury stock method, equivalent shares of unvested restricted stock and restricted stock units of 142,131 and 268,633 shares, respectively, were included in the weighted average shares outstanding in the diluted calculation. Anti-dilutive stock options of 267,132 and 216,619 were excluded from the calculation of dilutive earnings per share for the three and nine month period ended September 30, 2013, respectively. There were no restricted shares or stock options excluded from the calculation of dilutive earnings per share for the three and nine month period ended September 30, 2012. | |
Recently Adopted Accounting Standards, Policy | Recent accounting adoptions |
In February 2013, the FASB issued ASU No. 2013-02, Comprehensive Income (Topic 220), Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income, which requires an entity to provide information about the amounts reclassified out of accumulated other comprehensive income by component. In addition, an entity is required to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income but only if the amount reclassified is required under U.S. GAAP to be reclassified to net income in its entirety in the same reporting period. ASU No. 2013-02 is effective prospectively for reporting periods beginning after December 15, 2012. We adopted this guidance on January 1, 2013. The adoption of this guidance increased our disclosures, but did not have an impact on our consolidated financial position, results of operations or cash flows. | |
In December 2011, the FASB issued ASU No. 2011-11, Balance Sheet (Topic 210), Disclosures about Offsetting Assets and Liabilities, which requires an entity to disclose information about offsetting and related arrangements to enable users of its financial statements to understand the effect of those arrangements on its financial position. In January 2013, the FASB issued ASU No. 2013-01, Clarifying the Scope of Disclosures About Offsetting Assets and Liabilities, that limits the scope of the new balance sheet offsetting disclosures to derivatives, repurchase agreements and securities lending transactions to the extent they are offset in the financial statements or subject to an enforceable master netting arrangement or similar agreement. ASU No. 2011-11, as clarified by ASU No. 2013-01, is effective for annual reporting periods beginning on or after January 1, 2013 and interim periods within those annual periods. We adopted this guidance on January 1, 2013. The adoption of this guidance had an immaterial impact. | |
New accounting pronouncements | |
In July 2013, the FASB issued ASU No. 2013-11, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists to provide guidance on the presentation of unrecognized tax benefits. ASU 2013-11 requires an entity to present an unrecognized tax benefit, or a portion of an unrecognized tax benefit, as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward with certain limited exceptions. ASU 2013-11 is effective for annual reporting periods beginning on or after December 15, 2013 and interim periods within those annual periods with earlier adoption permitted. This guidance is effective January 1, 2014. ASU 2013-11 should be applied prospectively with retroactive application permitted. We are currently evaluating the impact of ASU 2013-11 on our consolidated financial statements. | |
Fair Value of Financial Instruments, Policy | We calculate the fair value of our interest rate swap contracts, commodity contracts and foreign currency contracts using quoted interest rate curves, quoted commodity forward rates and quoted currency forward rates. For contracts which, when aggregated by counterparty, are in a liability position, the discount rates are adjusted by the credit spread that market participants would apply if buying these contracts from our counterparties. |
In addition to items that are measured at fair value on a recurring basis, we also have assets and liabilities that are measured at fair value on a nonrecurring basis. As these assets and liabilities are not measured at fair value on a recurring basis, they are not included in the tables above. Assets and liabilities that are measured at fair value on a nonrecurring basis include long-lived assets (see Note 7). We have determined that the fair value measurements included in each of these assets and liabilities rely primarily on our assumptions as observable inputs are not available. As such, we have determined that each of these fair value measurements reside within Level 3 of the fair value hierarchy. | |
Derivatives, Policy | We present our derivative positions and any related material collateral under master netting agreements on a net basis. For derivatives designated as cash flow hedges, changes in the time value are excluded from the assessment of hedge effectiveness. Unrealized gains and losses associated with ineffective hedges, determined using the change in fair value method, are recognized in the accompanying consolidated statements of operations. Derivative gains and losses included in AOCI for effective hedges are reclassified into the accompanying consolidated statements of operations upon recognition of the hedged transaction. |
Any derivative instrument designated initially, but no longer effective as a hedge, or initially not effective as a hedge, is recorded at fair value and the related gains and losses are recognized in the accompanying consolidated statements of operations. Our undesignated hedges are primarily our interest rate swaps whose fair value at inception of the instrument due to the rollover of existing interest rate swaps resulted in ineffectiveness. | |
Accounts Receivable Factoring Arrangements | Accounts receivable factoring arrangements |
We have entered into factoring agreements with various domestic and European financial institutions to sell our accounts receivable under nonrecourse agreements. These are treated as a sale. The transactions are accounted for as a reduction in accounts receivable as the agreements transfer effective control over and risk related to the receivables to the buyers. We do not service any domestic accounts after the factoring has occurred. We do not have any servicing assets or liabilities. We utilize factoring arrangements as an integral part of financing for us. The cost of factoring such accounts receivable is reflected in the accompanying consolidated statements of operations as interest expense-net with other financing costs. | |
Income Tax, Policy | We compute on a quarterly basis an estimated annual effective tax rate considering ordinary income and related income tax expense. Ordinary income refers to income (loss) before income tax expense excluding significant, unusual, or infrequently occurring items. The tax effect of an unusual or infrequently occurring item is recorded in the interim period in which it occurs. To the extent we cannot reliably estimate annual projected taxes for a taxing jurisdiction, taxes on ordinary income for such a jurisdiction are reported in the period in which they are incurred. Other items included in income tax expense in the periods in which they occur include the cumulative effect of changes in tax laws or rates, foreign exchange gains and losses, adjustments to uncertain tax positions, and adjustments to our valuation allowance due to changes in judgment regarding the realizability of deferred tax assets in future years. |
Commitments and Contingencies, Policy | We are party to various legal actions and administrative proceedings and subject to various claims arising in the ordinary course of business, including those relating to commercial transactions, product liability, safety, health, taxes, environmental and other matters. We review these matters on an ongoing basis and follow the provisions of FASB ASC Topic 450, Contingencies, when making accrual and disclosure decisions. For legal proceedings where it has been determined that a loss is both probable and reasonably estimable, a liability based on known facts and which represents our best estimate has been recorded in our accompanying consolidated financial statements. We believe that the ultimate liability, if any, in excess of amounts already provided for in our accompanying consolidated financial statements on the disposition of these matters and the matters discussed below would not have a material adverse effect on our financial position. |
Summary_of_significant_account2
Summary of significant accounting policies (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Accounting Policies [Abstract] | ||||||||||||||||
Schedule of Government Grants | The amounts recognized in the accompanying consolidated statements of operations as government grants were as follows: | |||||||||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
(In thousands) | 2013 | 2012 | 2013 | 2012 | ||||||||||||
Reduction of cost of goods sold | $ | 628 | $ | 1,256 | $ | 1,900 | $ | 3,712 | ||||||||
Reduction of selling, general, and administrative expenses | $ | 220 | $ | 1,299 | $ | 556 | $ | 5,142 | ||||||||
Fair_value_measurements_Tables
Fair value measurements (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||
Fair Value, by Balance Sheet Grouping | Assets and liabilities remeasured and disclosed at fair value on a recurring basis as of September 30, 2013, and December 31, 2012, are set forth in the table below: | |||||||||||||||
As of September 30, 2013 | As of December 31, 2012 | |||||||||||||||
(In thousands) | Asset/ | Level 2 | Valuation | Asset/ | Level 2 | Valuation | ||||||||||
(liability) | technique | (liability) | technique | |||||||||||||
Interest rate swap contracts | $ | (310 | ) | $ | (310 | ) | C | $ | (2,218 | ) | $ | (2,218 | ) | C | ||
Foreign exchange contracts | 2,635 | 2,635 | C | 5,328 | 5,328 | C | ||||||||||
Commodity contracts | (3,029 | ) | (3,029 | ) | C | (1,315 | ) | (1,315 | ) | C |
Financial_instruments_Tables
Financial instruments (Tables) | 3 Months Ended | 9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Instruments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Derivative Instruments | As of September 30, 2013, and December 31, 2012, we had the following outstanding foreign currency contracts that were entered into to hedge forecasted purchases and revenues, respectively: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
(In thousands) | Currency denomination | ||||||||||||||||||||||||||||||||||||||||||||||||||||
September 30, | December 31, | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency contract | 2013 | 2012 | |||||||||||||||||||||||||||||||||||||||||||||||||||
South Korean Won Forward | $ | 45,735 | $ | 55,546 | |||||||||||||||||||||||||||||||||||||||||||||||||
Mexican Peso Contracts | $ | 54,985 | $ | 66,674 | |||||||||||||||||||||||||||||||||||||||||||||||||
Brazilian Real Forward | $ | 11,698 | $ | 18,055 | |||||||||||||||||||||||||||||||||||||||||||||||||
Hungarian Forint Forward | € | 10,921 | € | 13,565 | |||||||||||||||||||||||||||||||||||||||||||||||||
Great Britain Pound Forward | £ | 2,750 | £ | 1,370 | |||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The following table discloses the fair values and balance sheet locations of our derivative instruments: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Asset derivatives | Liability derivatives | ||||||||||||||||||||||||||||||||||||||||||||||||||||
(In thousands) | Balance sheet location | September 30, 2013 | December 31, 2012 | Balance sheet location | September 30, 2013 | December 31, 2012 | |||||||||||||||||||||||||||||||||||||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Commodity contracts | Prepaid expenses and | $ | 110 | $ | 427 | Other current liabilities | $ | 3,284 | $ | 2,009 | |||||||||||||||||||||||||||||||||||||||||||
other current assets | and accrued expenses | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Commodity contracts | Other noncurrent assets | 145 | 267 | Other noncurrent liabilities | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency contracts | Prepaid expenses and | 2,697 | 5,537 | Other current liabilities | 49 | 26 | |||||||||||||||||||||||||||||||||||||||||||||||
other current assets | and accrued expenses | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency contracts | Other noncurrent assets | 44 | 127 | Other noncurrent liabilities | 57 | 310 | |||||||||||||||||||||||||||||||||||||||||||||||
Interest rate swap contracts | Other noncurrent assets | 922 | — | Other noncurrent liabilities | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Total derivatives designated as hedging instruments | $ | 3,918 | $ | 6,358 | $ | 3,390 | $ | 2,345 | |||||||||||||||||||||||||||||||||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate swap contracts | Prepaid expenses and | $ | — | $ | — | Other current liabilities | $ | — | $ | 2,218 | |||||||||||||||||||||||||||||||||||||||||||
other current assets | and accrued expenses | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate swap contracts | Other noncurrent assets | — | — | Other noncurrent liabilities | 1,232 | — | |||||||||||||||||||||||||||||||||||||||||||||||
Total derivatives not designated as hedging instruments | $ | — | $ | — | $ | 1,232 | $ | 2,218 | |||||||||||||||||||||||||||||||||||||||||||||
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance | The following tables disclose the effect of our derivative instruments on the accompanying consolidated statement of operations for the three months ended September 30, 2013 (in thousands): | The following tables disclose the effect of our derivative instruments on the accompanying consolidated statement of operations for the three months ended September 30, 2012 (in thousands): | The following tables disclose the effect of our derivative instruments on the accompanying consolidated statement of operations for the nine months ended September 30, 2013 (in thousands): | The following tables disclose the effect of our derivative instruments on the accompanying consolidated statement of operations for the nine months ended September 30, 2012 (in thousands): | |||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives designated as cash flow hedging instruments | Amount of gain (loss) recognized in OCI on derivatives (effective portion) | Location of gain (loss) reclassified from AOCI into income (effective portion) | Amount of gain (loss) reclassified from AOCI into income (effective portion) | Location of gain (loss) recognized in income on derivatives (ineffective portion and amount excluded from effectiveness testing) | Amount of gain (loss) recognized in income on derivatives (ineffective portion and amount excluded from effectiveness testing) | Derivatives designated as cash flow hedging instruments | Amount of gain (loss) recognized in OCI on derivatives (effective portion) | Location of gain (loss) reclassified from AOCI into income (effective portion) | Amount of gain (loss) reclassified from AOCI into income (effective portion) | Location of gain (loss) recognized in income on derivatives (ineffective portion and amount excluded from effectiveness testing) | Amount of gain (loss) recognized in income on derivatives (ineffective portion and amount excluded from effectiveness testing) | Derivatives designated as cash flow hedging instruments | Amount of gain (loss) recognized in OCI on derivatives (effective portion) | Location of gain (loss) reclassified from AOCI into income (effective portion) | Amount of gain (loss) reclassified from AOCI into income (effective portion) | Location of gain (loss) recognized in income on derivatives (ineffective portion and amount excluded from effectiveness testing) | Amount of gain (loss) recognized in income on derivatives (ineffective portion and amount excluded from effectiveness testing) | Derivatives designated as cash flow hedging instruments | Amount of gain (loss) recognized in OCI on derivatives (effective portion) | Location of gain (loss) reclassified from AOCI into income (effective portion) | Amount of gain (loss) reclassified from AOCI into income (effective portion) | Location of gain (loss) recognized in income on derivatives (ineffective portion and amount excluded from effectiveness testing) | Amount of gain (loss) recognized in income on derivatives (ineffective portion and amount excluded from effectiveness testing) | ||||||||||||||||||||||||||||||
Commodity contracts | $ | 2,863 | Cost of goods sold | $ | (1,591 | ) | Cost of goods sold | $ | 28 | Commodity contracts | $ | 958 | Cost of goods sold | $ | (1,637 | ) | Cost of goods sold | $ | 29 | Commodity contracts | $ | (4,071 | ) | Cost of goods sold | $ | (2,374 | ) | Cost of goods sold | $ | (58 | ) | Commodity contracts | $ | 1,143 | Cost of goods sold | $ | (3,341 | ) | Cost of goods sold | $ | 18 | ||||||||||||
Foreign currency contracts | 1,988 | Cost of goods sold | 4,887 | Cost of goods sold | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency contracts | 4,494 | Cost of goods sold | 2,068 | Cost of goods sold | — | Foreign currency contracts | 5,316 | Cost of goods sold | (580 | ) | Cost of goods sold | — | Foreign currency contracts | 9,698 | Cost of goods sold | (3,627 | ) | Cost of goods sold | — | ||||||||||||||||||||||||||||||||||
Interest rate swap contracts | 922 | Interest expense–net | — | Interest expense–net | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate swap contracts | (102 | ) | Interest expense–net | — | Interest expense–net | — | $ | 6,274 | $ | (2,217 | ) | $ | 29 | $ | 10,841 | $ | (6,968 | ) | $ | 18 | |||||||||||||||||||||||||||||||||
$ | (1,161 | ) | $ | 2,513 | $ | (58 | ) | ||||||||||||||||||||||||||||||||||||||||||||||
$ | 7,255 | $ | 477 | $ | 28 | ||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives not designated as hedging instruments | Location of gain (loss) recognized in income on derivatives | Amount of gain (loss) recognized in income on derivatives | Derivatives not designated as hedging instruments | Location of gain (loss) recognized in income on derivatives | Amount of gain (loss) recognized in income on derivatives | ||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate swap contracts | Interest expense–net | $ | (86 | ) | Derivatives not designated as hedging instruments | Location of gain (loss) recognized in income on derivatives | Amount of gain (loss) recognized in income on derivatives | Interest rate swap contracts | Interest expense–net | $ | (408 | ) | |||||||||||||||||||||||||||||||||||||||||
Derivatives not designated as hedging instruments | Location of gain (loss) recognized in income on derivatives | Amount of gain (loss) recognized in income on derivatives | |||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate swap | Interest expense–net | $ | 986 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate swap | Interest expense–net | $ | (137 | ) |
Inventories_Tables
Inventories (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Inventory [Abstract] | ||||||||
Schedule of Inventory, Current | Net inventories consisted of the following: | |||||||
September 30, | December 31, | |||||||
(In thousands) | 2013 | 2012 | ||||||
Raw materials | $ | 49,347 | $ | 47,972 | ||||
Core inventory | 38,859 | 31,191 | ||||||
Work-in-process | 7,391 | 9,934 | ||||||
Finished goods | 68,820 | 69,839 | ||||||
$ | 164,417 | $ | 158,936 | |||||
Goodwill_and_other_intangible_1
Goodwill and other intangible assets (Tables) | 9 Months Ended | |||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||
Schedule of Intangible Assets and Goodwill | The following table represents the carrying value of other intangible assets: | |||||||||||||||||||||||
As of September 30, 2013 | As of December 31, 2012 | |||||||||||||||||||||||
(In thousands) | Carrying | Accumulated | Net | Carrying | Accumulated | Net | ||||||||||||||||||
value | amortization | value | amortization | |||||||||||||||||||||
Definite-life intangibles: | ||||||||||||||||||||||||
Intellectual property | $ | 16,377 | $ | 4,395 | $ | 11,982 | $ | 14,370 | $ | 4,082 | $ | 10,288 | ||||||||||||
Customer relationships | 35,500 | 17,069 | 18,431 | 35,500 | 15,150 | 20,350 | ||||||||||||||||||
Customer contract | 98,270 | 83,754 | 14,516 | 95,389 | 74,898 | 20,491 | ||||||||||||||||||
Total | 150,147 | 105,218 | 44,929 | 145,259 | 94,130 | 51,129 | ||||||||||||||||||
Indefinite-life intangibles: | ||||||||||||||||||||||||
Trade names | 48,200 | — | 48,200 | 48,200 | — | 48,200 | ||||||||||||||||||
Intangible assets, net | $ | 198,347 | $ | 105,218 | $ | 93,129 | $ | 193,459 | $ | 94,130 | $ | 99,329 | ||||||||||||
Goodwill | $ | 271,418 | $ | — | $ | 271,418 | $ | 271,418 | $ | — | $ | 271,418 | ||||||||||||
Other_current_liabilities_and_1
Other current liabilities and accrued expenses (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Other current liabilities and accrued expenses [Abstract] | ||||||||||||||||
Schedule of Accrued Liabilities | Other current liabilities and accrued expenses consist of the following: | |||||||||||||||
September 30, | December 31, | |||||||||||||||
(In thousands) | 2013 | 2012 | ||||||||||||||
Accrued warranty | $ | 26,706 | $ | 23,374 | ||||||||||||
Accrued wages and benefits | 18,595 | 18,531 | ||||||||||||||
Current portion of customer obligations | 7,263 | 9,326 | ||||||||||||||
Rebates, stocklifts, discounts and returns | 20,613 | 15,865 | ||||||||||||||
Current deferred revenue | 1,980 | 2,882 | ||||||||||||||
Other | 40,932 | 38,179 | ||||||||||||||
$ | 116,089 | $ | 108,157 | |||||||||||||
Schedule of Product Warranty Liability | Changes to our current and noncurrent accrued warranty were as follows: | |||||||||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
(In thousands) | 2013 | 2012 | 2013 | 2012 | ||||||||||||
Balance at beginning of period | $ | 29,069 | $ | 31,513 | $ | 27,194 | $ | 30,278 | ||||||||
Provision for warranty | 12,065 | 10,468 | 32,535 | 30,745 | ||||||||||||
Payments and charges against the accrual | (10,732 | ) | (10,396 | ) | (29,327 | ) | (29,438 | ) | ||||||||
Balance at end of period | $ | 30,402 | $ | 31,585 | $ | 30,402 | $ | 31,585 | ||||||||
Other_noncurrent_liabilities_T
Other noncurrent liabilities (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Other Liabilities, Noncurrent [Abstract] | ||||||||
Other Noncurrent Liabilities | Other noncurrent liabilities consist of the following: | |||||||
September 30, | December 31, | |||||||
(In thousands) | 2013 | 2012 | ||||||
Customer obligations, net of current portion | $ | 3,398 | $ | 3,689 | ||||
Noncurrent deferred revenue | 4,940 | 5,755 | ||||||
Other | 21,125 | 19,744 | ||||||
$ | 29,463 | $ | 29,188 | |||||
Restructuring_and_other_charge1
Restructuring and other charges (Tables) | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||
Restructuring and Related Activities [Abstract] | ||||||||||||||||||||
Schedule of Restructuring Reserve by Type of Cost | The following table summarizes the activity in our accrual for restructuring and other charges for the three and nine month periods ended September 30, (in thousands): | |||||||||||||||||||
2013 | Termination | Exit | Other charges | Total | ||||||||||||||||
benefits | costs | |||||||||||||||||||
Accrual at December 31, 2012 | $ | 3,573 | $ | 106 | $ | — | $ | 3,679 | ||||||||||||
Provision | 370 | 311 | — | 681 | ||||||||||||||||
Payments | (1,832 | ) | (331 | ) | — | (2,163 | ) | |||||||||||||
Accrued at March 31, 2013 | $ | 2,111 | $ | 86 | $ | — | $ | 2,197 | ||||||||||||
Provision | 1,196 | 932 | — | 2,128 | ||||||||||||||||
Payments | (1,870 | ) | (916 | ) | — | (2,786 | ) | |||||||||||||
Accrued at June 30, 2013 | $ | 1,437 | $ | 102 | $ | — | $ | 1,539 | ||||||||||||
Provision | 1,421 | 33 | — | 1,454 | ||||||||||||||||
Payments | (1,086 | ) | (58 | ) | — | (1,144 | ) | |||||||||||||
Accrued at September 30, 2013 | $ | 1,772 | $ | 77 | $ | — | $ | 1,849 | ||||||||||||
2012 | Termination | Exit | Other charges | Total | ||||||||||||||||
benefits | costs | |||||||||||||||||||
Accrual at December 31, 2011 | $ | 2,539 | $ | 386 | $ | — | $ | 2,925 | ||||||||||||
Provision | 1,686 | 12 | — | 1,698 | ||||||||||||||||
Payments | (1,449 | ) | (361 | ) | — | (1,810 | ) | |||||||||||||
Accrued at March 31, 2012 | $ | 2,776 | $ | 37 | $ | — | $ | 2,813 | ||||||||||||
Provision | (138 | ) | 230 | 1,800 | 1,892 | |||||||||||||||
Payments | (1,386 | ) | (64 | ) | (1,800 | ) | (3,250 | ) | ||||||||||||
Accrued at June 30, 2012 | $ | 1,252 | $ | 203 | $ | — | $ | 1,455 | ||||||||||||
Provision | 2,969 | 126 | — | 3,095 | ||||||||||||||||
Payments | (409 | ) | (202 | ) | — | (611 | ) | |||||||||||||
Accrued at September 30, 2012 | $ | 3,812 | $ | 127 | $ | — | $ | 3,939 | ||||||||||||
Schedule of Restructuring and Related Costs | Significant components of restructuring and other charges were as follows (in thousands): | |||||||||||||||||||
Total | Expense incurred in | Estimated | ||||||||||||||||||
expected | Nine | Twelve | Twelve | future | ||||||||||||||||
costs | months ended | months ended | months ended | expense | ||||||||||||||||
September 30, | December 31, | December 31, | ||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||
2013 Activities | ||||||||||||||||||||
Severance | $ | 2,245 | $ | 2,245 | $ | — | $ | — | $ | — | ||||||||||
Exit costs | 1,027 | 527 | — | — | 500 | |||||||||||||||
$ | 3,272 | $ | 2,772 | $ | — | $ | — | $ | 500 | |||||||||||
2012 Activities | ||||||||||||||||||||
Severance | $ | 4,512 | $ | 742 | $ | 3,738 | $ | — | $ | 32 | ||||||||||
Exit costs | 1,219 | 749 | 410 | — | 60 | |||||||||||||||
Other charges | 1,687 | — | 1,687 | — | — | |||||||||||||||
$ | 7,418 | $ | 1,491 | $ | 5,835 | $ | — | $ | 92 | |||||||||||
2011 Activities | ||||||||||||||||||||
Severance | $ | 4,518 | $ | — | $ | 1,635 | $ | 2,883 | $ | — | ||||||||||
Exit costs | 801 | — | 241 | 560 | — | |||||||||||||||
$ | 5,319 | $ | — | $ | 1,876 | $ | 3,443 | $ | — | |||||||||||
Debt_Tables
Debt (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Debt Disclosure [Abstract] | ||||||||
Schedule of Debt | Borrowings under long-term debt arrangements, net of discounts, consisted of the following: | |||||||
September 30, | December 31, | |||||||
(In thousands) | 2013 | 2012 | ||||||
Asset-Based Revolving Credit Facility, First Amendment-Maturity date of September 5, 2018 | $ | — | $ | — | ||||
Term B Loan-Maturity date of December 17, 2016 | — | 284,892 | ||||||
Amended and Restated Term B Loan-Maturity date of March 5, 2020 | 295,667 | — | ||||||
Total Senior Credit Facility and Notes | 295,667 | 284,892 | ||||||
Capital leases | 2,479 | 3,053 | ||||||
Less current maturities | (3,542 | ) | (3,470 | ) | ||||
Long-term debt less current maturities | $ | 294,604 | $ | 284,475 | ||||
Schedule of Maturities of Long-term Debt [Table Text Block] | Future maturities of long-term debt outstanding at September 30, 2013, including capital lease obligations, and excluding original issue discount, in thousands, consist of the following: | |||||||
2013 (remaining) | $ | 1,012 | ||||||
2014 | 3,390 | |||||||
2015 | 3,407 | |||||||
2016 | 3,423 | |||||||
2017 | 3,353 | |||||||
Thereafter | 285,646 | |||||||
Reclassifications_out_of_accum1
Reclassifications out of accumulated other comprehensive income (loss) (Tables) | 3 Months Ended | 9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reclassifications Out of Accumulated Other Comprehensive Income (Loss) [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table discloses the changes in each component of accumulated other comprehensive income, net of tax for the three and nine month periods ended September 30, 2013 (in thousands): | The following table discloses the changes in each component of accumulated other comprehensive income, net of tax for the three and nine month periods ended September 30, 2012 (in thousands): | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | Unrealized gains (losses) on currency hedges | Unrealized gains (losses) on commodity hedges | Interest rate swaps | Employee benefit plan adjustment | Accumulated other comprehensive income (loss) | Foreign currency translation adjustment | Unrealized gains (losses) on currency hedges | Unrealized gains (losses) on commodity hedges | Interest rate swaps | Employee benefit plan adjustment | Accumulated other comprehensive income (loss) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Balances at December 31, 2012 | $ | (19,860 | ) | $ | 3,426 | $ | (6,316 | ) | $ | (1,574 | ) | $ | (25,983 | ) | $ | (50,307 | ) | Balances at December 31, 2011 | $ | (22,624 | ) | $ | (9,513 | ) | $ | (8,858 | ) | $ | (1,574 | ) | $ | (23,161 | ) | $ | (65,730 | ) | |||||||||||||||||||||||||
Other comprehensive income (loss) before reclassifications | 2,390 | 4,390 | 3,593 | — | 45 | 10,418 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) before reclassifications | (3,172 | ) | 513 | (1,282 | ) | (270 | ) | 102 | (4,109 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | — | 1,185 | 787 | — | (106 | ) | 1,866 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | — | (1,081 | ) | (48 | ) | — | 346 | (783 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Balances at March 31, 2012 | (20,234 | ) | (3,938 | ) | (4,478 | ) | (1,574 | ) | (23,222 | ) | (53,446 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||
Balances at March 31, 2013 | (23,032 | ) | 2,858 | (7,646 | ) | (1,844 | ) | (25,535 | ) | (55,199 | ) | Other comprehensive income (loss) before reclassifications | (4,713 | ) | (152 | ) | (3,417 | ) | — | 21 | (8,261 | ) | |||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) before reclassifications | (2,258 | ) | (2,498 | ) | (2,991 | ) | 894 | (154 | ) | (7,007 | ) | Amounts reclassified from accumulated other comprehensive income (loss) | — | 1,434 | 926 | — | (231 | ) | 2,129 | ||||||||||||||||||||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | — | (1,104 | ) | 578 | — | 76 | (450 | ) | Balances at June 30, 2012 | $ | (24,947 | ) | $ | (2,656 | ) | $ | (6,969 | ) | $ | (1,574 | ) | $ | (23,432 | ) | $ | (59,578 | ) | ||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) before reclassifications | 2,226 | 4,158 | 599 | — | (62 | ) | 6,921 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balances at June 30, 2013 | $ | (25,290 | ) | $ | (744 | ) | $ | (10,059 | ) | $ | (950 | ) | $ | (25,613 | ) | $ | (62,656 | ) | |||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) before reclassifications | 5,566 | 3,472 | 1,762 | (63 | ) | (105 | ) | 10,632 | Amounts reclassified from accumulated other comprehensive income (loss) | — | 529 | 310 | — | 40 | 879 | ||||||||||||||||||||||||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | — | (1,556 | ) | 952 | — | 210 | (394 | ) | Balances at September 30, 2012 | $ | (22,721 | ) | $ | 2,031 | $ | (6,060 | ) | $ | (1,574 | ) | $ | (23,454 | ) | $ | (51,778 | ) | |||||||||||||||||||||||||||||||||||
Balances at September 30, 2013 | $ | (19,724 | ) | $ | 1,172 | $ | (7,345 | ) | $ | (1,013 | ) | $ | (25,508 | ) | $ | (52,418 | ) | ||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Reclassification Amount | The following table discloses the effect of reclassifications of accumulated other comprehensive income on the accompanying consolidated statement of operations (in thousands): | The following table discloses the effect of reclassifications of accumulated other comprehensive income on the accompanying consolidated statement of operations (in thousands): | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Details about Accumulated Other Comprehensive Income (Loss) Components | Three months ended September 30, | Affected Line Item in the Statement Where Net Income is Presented | Details about Accumulated Other Comprehensive Income (Loss) Components | Nine months ended September 30, | Affected Line Item in the Statement Where Net Income is Presented | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gains (losses) on cash flow hedges: | Gains (losses) on cash flow hedges: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency contracts | $ | 2,068 | $ | (580 | ) | Cost of goods sold | Foreign currency contracts | $ | 4,887 | $ | (3,627 | ) | Cost of goods sold | ||||||||||||||||||||||||||||||||||||||||||||||||
Commodity contracts | (1,563 | ) | (1,608 | ) | Cost of goods sold | Commodity contracts | (2,432 | ) | (3,323 | ) | Cost of goods sold | ||||||||||||||||||||||||||||||||||||||||||||||||||
505 | (2,188 | ) | Total before tax | 2,455 | (6,950 | ) | Total before tax | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
99 | 1,349 | Tax benefit | (196 | ) | 1,777 | Tax benefit (expense) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
$ | 604 | $ | (839 | ) | Net of tax | $ | 2,259 | $ | (5,173 | ) | Net of tax | ||||||||||||||||||||||||||||||||||||||||||||||||||
Amortization of employee benefit plan costs: | Amortization of employee benefit plan costs: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Prior service costs | $ | 454 | $ | 419 | Selling, general and administrative expenses | Prior service costs | $ | 1,362 | $ | 1,256 | Selling, general and administrative expenses | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net actuarial loss | (800 | ) | (188 | ) | Selling, general and administrative expenses | Net actuarial loss | (2,400 | ) | (689 | ) | Selling, general and administrative expenses | ||||||||||||||||||||||||||||||||||||||||||||||||||
(346 | ) | 231 | Total before tax | (1,038 | ) | 567 | Total before tax | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
136 | (271 | ) | Tax benefit (expense) | 406 | (271 | ) | Tax benefit (expense) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
$ | (210 | ) | $ | (40 | ) | Net of tax | $ | (632 | ) | $ | 296 | Net of tax | |||||||||||||||||||||||||||||||||||||||||||||||||
Total reclassifications for the period | $ | 394 | $ | (879 | ) | Net of tax | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total reclassifications for the period | $ | 1,627 | $ | (4,877 | ) | Net of tax | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Employee_benefit_plans_Tables
Employee benefit plans (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | ||||||||||||||||
Schedule of Defined Benefit Plans Disclosures | The components of expense for the plans were as follows (in thousands): | |||||||||||||||
Pension benefits: | ||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
Components of expense | 2013 | 2012 | 2013 | 2012 | ||||||||||||
Service costs | $ | 273 | $ | 73 | $ | 754 | $ | 219 | ||||||||
Interest costs | 693 | 653 | 2,066 | 1,958 | ||||||||||||
Expected return on plan assets | (665 | ) | (534 | ) | (1,982 | ) | (1,631 | ) | ||||||||
Recognized net actuarial loss | 344 | 311 | 1,032 | 1,058 | ||||||||||||
Net periodic pension cost | $ | 645 | $ | 503 | $ | 1,870 | $ | 1,604 | ||||||||
Postretirement health care and life insurance plans: | ||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
Components of expense | 2013 | 2012 | 2013 | 2012 | ||||||||||||
Interest costs | $ | 19 | $ | 24 | $ | 58 | $ | 73 | ||||||||
Amortization of prior service cost | (454 | ) | (419 | ) | (1,362 | ) | (1,256 | ) | ||||||||
Recognized net actuarial loss (gain) | 456 | (123 | ) | 1,368 | (369 | ) | ||||||||||
Net periodic cost (benefit) | $ | 21 | $ | (518 | ) | $ | 64 | $ | (1,552 | ) | ||||||
Stockbased_compensation_Tables
Stock-based compensation (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Share-based Compensation [Abstract] | ||||||||||||||||
Allocated Share-based Compensation Expense | Noncash compensation expense related to all types of awards was recognized for the three and nine months ended September 30, as follows: | |||||||||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
(In thousands) | 2013 | 2012 | 2013 | 2012 | ||||||||||||
Stock-based compensation expense | $ | 1,648 | $ | 1,883 | $ | 4,894 | $ | 5,419 | ||||||||
Business_segment_and_geographi1
Business segment and geographical information (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Segments, Geographical Areas [Abstract] | ||||||||||||||||
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas | Information about our net sales by region was as follows: | |||||||||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
(In thousands) | 2013 | 2012 | 2013 | 2012 | ||||||||||||
Net sales to external customers: | ||||||||||||||||
United States | $ | 172,706 | $ | 188,013 | $ | 550,728 | $ | 579,981 | ||||||||
Europe | 21,571 | 25,201 | 68,092 | 79,722 | ||||||||||||
Other Americas | 14,663 | 14,074 | 45,457 | 42,127 | ||||||||||||
Asia Pacific | 53,892 | 50,113 | 162,631 | 163,452 | ||||||||||||
Total net sales | $ | 262,832 | $ | 277,401 | $ | 826,908 | $ | 865,282 | ||||||||
Description_of_the_business_De
Description of the business (Details) (Majority Shareholder, USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, except Share data, unless otherwise specified | ||
Majority Shareholder | ||
Statement | ||
Shares held by majority stakeholder | 16,342,508 | 16,342,508 |
Debt held by majority stakeholder | $29,775 | $28,698 |
Significant investor's ownership percentage | 51.00% | 51.00% |
Summary_of_significant_account3
Summary of significant accounting policies (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Notes, Loans and Financing Receivable, Net, Current | $27,205 | $27,205 | $29,091 | ||
Commercial Paper | 3,775 | 3,775 | |||
Weighted Average Number Diluted Shares Outstanding Adjustment | 143,376 | 355,268 | 142,131 | 268,633 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 267,132 | 0 | 216,619 | 0 | |
Government Grant | |||||
Government Grant Awarded | 60,200 | ||||
Government Grants Received | 36,000 | ||||
Deferred Revenue | 6,465 | 6,465 | 7,414 | ||
Reduction of cost of goods sold | 628 | 1,256 | 1,900 | 3,712 | |
Reduction of selling, general, and administrative expenses | $220 | 1,299 | $556 | 5,142 |
Fair_value_measurements_Detail
Fair value measurements (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Interest Rate Swap | ||
Assets/(Liabilities) | ||
Derivative Assets (Liabilities), at Fair Value, Net | ($310) | ($2,218) |
Interest Rate Swap | Fair Value, Inputs, Level 2 | ||
Assets/(Liabilities) | ||
Derivative Assets (Liabilities), at Fair Value, Net | -310 | -2,218 |
Foreign Exchange Contract | ||
Assets/(Liabilities) | ||
Derivative Assets (Liabilities), at Fair Value, Net | 2,635 | 5,328 |
Foreign Exchange Contract | Fair Value, Inputs, Level 2 | ||
Assets/(Liabilities) | ||
Derivative Assets (Liabilities), at Fair Value, Net | 2,635 | 5,328 |
Commodity Contract | ||
Assets/(Liabilities) | ||
Derivative Assets (Liabilities), at Fair Value, Net | -3,029 | -1,315 |
Commodity Contract | Fair Value, Inputs, Level 2 | ||
Assets/(Liabilities) | ||
Derivative Assets (Liabilities), at Fair Value, Net | ($3,029) | ($1,315) |
Financial_instruments_Details
Financial instruments (Details) (Foreign Exchange Contract) | 9 Months Ended | |||||||||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 |
USD ($) | USD ($) | South Korean Won Forward | South Korean Won Forward | Mexican Peso Contracts | Mexican Peso Contracts | Brazilian Real Forward | Brazilian Real Forward | Hungary Forint Forward | Hungary Forint Forward | Great Britain Pound Forward | Great Britain Pound Forward | |
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | EUR (€) | EUR (€) | GBP (£) | GBP (£) | |||
Derivative | ||||||||||||
Maximum Term of Credit Risk Derivatives | 15 months | |||||||||||
Accumulated unrealized gains/losses recorded in accumulated other comprehensive income, net of tax | $1,172 | $3,426 | ||||||||||
Cash flow hedge gain/loss to be reclassified within twelve months | 1,216 | |||||||||||
Notional amount of foreign currency derivatives | $45,735 | $55,546 | $54,985 | $66,674 | $11,698 | $18,055 | € 10,921 | € 13,565 | £ 2,750 | £ 1,370 |
Financial_instruments_Interest
Financial instruments Interest Rate Risk (Details) (Interest Rate Swap, USD $) | Dec. 31, 2010 | Dec. 31, 2016 | Sep. 30, 2013 | Dec. 31, 2016 | Sep. 30, 2013 | Dec. 31, 2012 |
Prior Contract | Not Designated as Hedging Instrument | Not Designated as Hedging Instrument | Designated as Hedging Instrument | Designated as Hedging Instrument | Designated as Hedging Instrument | |
Derivative | ||||||
Percentage of Debt Hedged by Interest Rate Derivatives | 50.00% | |||||
Derivative, Amount of Hedged Item | $72,000,000 | $72,000,000 | ||||
Derivative, lower variable interest rate range | 1.75% | 1.25% | 1.25% | |||
Derivative, fixed interest rate | 3.35% | 4.05% | 2.75% | |||
Notional Amount of Interest Rate Cash Flow Hedge Derivatives | 72,000,000 | 72,000,000 | ||||
Quarterly Notional Reduction, Derivatives | 187,500 | 187,500 | ||||
Accumulated unrealized gains/losses recorded in accumulated other comprehensive income, before tax | 922,000 | 0 | ||||
Cash flow hedge gain/loss to be reclassified within twelve months | $0 |
Financial_instruments_Commodit
Financial instruments Commodity Price Risk (Details) (Commodity Contract, USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 |
Commodity Contract | ||
Derivative, number of instruments held | 29 | 36 |
Investment contract weight | 5,423 | 6,566 |
Maximum Term of Credit Risk Derivatives | 15 months | |
Accumulated unrealized gains/losses recorded in accumulated other comprehensive income, before tax | ($2,985) | ($1,288) |
Cash flow hedge gain/loss to be reclassified within twelve months | ($3,129) |
Financial_instruments_Balance_
Financial instruments Balance Sheet Locations (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Designated as Hedging Instrument | ||
Derivatives, Fair Value | ||
Total derivative assets | $3,918 | $6,358 |
Total derivative liabilities | 3,390 | 2,345 |
Designated as Hedging Instrument | Commodity Contract | ||
Derivatives, Fair Value | ||
Prepaid expenses and other current assets | 110 | 427 |
Other noncurrent assets | 145 | 267 |
Other current liabilities and accrued expenses | 3,284 | 2,009 |
Other noncurrent liabilities | 0 | 0 |
Designated as Hedging Instrument | Foreign Exchange Contract | ||
Derivatives, Fair Value | ||
Prepaid expenses and other current assets | 2,697 | 5,537 |
Other noncurrent assets | 44 | 127 |
Other current liabilities and accrued expenses | 49 | 26 |
Other noncurrent liabilities | 57 | 310 |
Designated as Hedging Instrument | Interest Rate Swap | ||
Derivatives, Fair Value | ||
Other noncurrent assets | 922 | 0 |
Other noncurrent liabilities | 0 | 0 |
Not Designated as Hedging Instrument | ||
Derivatives, Fair Value | ||
Total derivative assets | 0 | 0 |
Total derivative liabilities | 1,232 | 2,218 |
Not Designated as Hedging Instrument | Interest Rate Swap | ||
Derivatives, Fair Value | ||
Prepaid expenses and other current assets | 0 | 0 |
Other noncurrent assets | 0 | 0 |
Other current liabilities and accrued expenses | 0 | 2,218 |
Other noncurrent liabilities | $1,232 | $0 |
Financial_instruments_Income_S
Financial instruments Income Statement Locations (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Not Designated as Hedging Instrument | Interest Rate Swap | ||||
Derivative Instruments, Gain (Loss) | ||||
Amount of gain (loss) recognized in income on derivatives | ($137) | ($86) | $986 | ($408) |
Designated as Hedging Instrument | ||||
Derivative Instruments, Gain (Loss) | ||||
Amount of gain (loss) recognized in OCI on derivatives (effective portion) | 7,255 | 6,274 | -1,161 | 10,841 |
Amount of gain (loss) reclassified from AOCI into income (effective portion) | 477 | -2,217 | 2,513 | -6,968 |
Amount of gain (loss) recognized in income on derivatives (ineffective portion and amount excluded from effectiveness testing) | 28 | 29 | -58 | 18 |
Designated as Hedging Instrument | Commodity Contract | ||||
Derivative Instruments, Gain (Loss) | ||||
Amount of gain (loss) recognized in OCI on derivatives (effective portion) | 2,863 | 958 | -4,071 | 1,143 |
Amount of gain (loss) reclassified from AOCI into income (effective portion) | -1,591 | -1,637 | -2,374 | -3,341 |
Amount of gain (loss) recognized in income on derivatives (ineffective portion and amount excluded from effectiveness testing) | 28 | 29 | -58 | 18 |
Designated as Hedging Instrument | Foreign Exchange Contract | ||||
Derivative Instruments, Gain (Loss) | ||||
Amount of gain (loss) recognized in OCI on derivatives (effective portion) | 4,494 | 5,316 | 1,988 | 9,698 |
Amount of gain (loss) reclassified from AOCI into income (effective portion) | 2,068 | -580 | 4,887 | -3,627 |
Amount of gain (loss) recognized in income on derivatives (ineffective portion and amount excluded from effectiveness testing) | 0 | 0 | 0 | 0 |
Designated as Hedging Instrument | Interest Rate Swap | ||||
Derivative Instruments, Gain (Loss) | ||||
Amount of gain (loss) recognized in OCI on derivatives (effective portion) | -102 | 922 | ||
Amount of gain (loss) reclassified from AOCI into income (effective portion) | 0 | 0 | ||
Amount of gain (loss) recognized in income on derivatives (ineffective portion and amount excluded from effectiveness testing) | $0 | $0 |
Financial_instruments_Factorin
Financial instruments Factoring Accounts Receivable (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Financial Instruments [Abstract] | |||||
Gain (loss) on sale of accounts receivable | $1,437 | $1,689 | $4,316 | $4,107 | |
Accounts receivable factored, gross | $227,992 | $227,992 | $183,547 |
Inventories_Details
Inventories (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Inventory [Abstract] | ||
Raw materials | $49,347 | $47,972 |
Core inventory | 38,859 | 31,191 |
Work-in-process | 7,391 | 9,934 |
Finished goods | 68,820 | 69,839 |
Inventories | $164,417 | $158,936 |
Property_plant_and_equipment_D
Property, plant and equipment (Details) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Property, Plant and Equipment [Abstract] | ||
Depreciation and amortization expense of property, plant, and equipment | $14,377 | $14,046 |
Goodwill_and_other_intangible_2
Goodwill and other intangible assets (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Intangible Assets and Goodwill | ||
Intangible Assets, Gross (Excluding Goodwill) | $198,347 | $193,459 |
Intangible Assets, Accumulated Amortization | 105,218 | 94,130 |
Intangible Assets, Net (Excluding Goodwill) | 93,129 | 99,329 |
Goodwill, Gross | 271,418 | 271,418 |
Goodwill, Amortization | 0 | 0 |
Goodwill, Net | 271,418 | 271,418 |
Definite-Life Intangible | ||
Intangible Assets and Goodwill | ||
Finite-Lived Intangible Assets, Gross | 150,147 | 145,259 |
Finite-Lived Intangible Assets, Accumulated Amortization | 105,218 | 94,130 |
Finite-Lived Intangible Assets, Net | 44,929 | 51,129 |
Definite-Life Intangible | Intellectual Property | ||
Intangible Assets and Goodwill | ||
Finite-Lived Intangible Assets, Gross | 16,377 | 14,370 |
Finite-Lived Intangible Assets, Accumulated Amortization | 4,395 | 4,082 |
Finite-Lived Intangible Assets, Net | 11,982 | 10,288 |
Definite-Life Intangible | Customer Relationships | ||
Intangible Assets and Goodwill | ||
Finite-Lived Intangible Assets, Gross | 35,500 | 35,500 |
Finite-Lived Intangible Assets, Accumulated Amortization | 17,069 | 15,150 |
Finite-Lived Intangible Assets, Net | 18,431 | 20,350 |
Definite-Life Intangible | Customer Contracts | ||
Intangible Assets and Goodwill | ||
Finite-Lived Intangible Assets, Gross | 98,270 | 95,389 |
Finite-Lived Intangible Assets, Accumulated Amortization | 83,754 | 74,898 |
Finite-Lived Intangible Assets, Net | 14,516 | 20,491 |
Indefinite-Life Intagible | Trade Names | ||
Intangible Assets and Goodwill | ||
Indefinite-Lived Intangible Assets, Gross | 48,200 | 48,200 |
Indefinite-Lived Intangible Assets, Accumulated Amortization | 0 | 0 |
Indefinite-Lived Intangible Assets, Net | $48,200 | $48,200 |
Other_noncurrent_assets_Detail
Other noncurrent assets (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Other noncurrent assets [Abstract] | ||
Noncurrent deferred tax assets | $22,893 | $32,907 |
Noncurrent core return rights | $35,501 | $33,908 |
Other_current_liabilities_and_2
Other current liabilities and accrued expenses Other Current Liabilities (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Other current liabilities and accrued expenses [Abstract] | ||
Accrued warranty | $26,706 | $23,374 |
Accrued wages and benefits | 18,595 | 18,531 |
Current portion of customer obligations | 7,263 | 9,326 |
Rebates, stocklifts, discounts and returns | 20,613 | 15,865 |
Current deferred revenue | 1,980 | 2,882 |
Other | 40,932 | 38,179 |
Other current liabilities and accrued expenses | $116,089 | $108,157 |
Other_current_liabilities_and_3
Other current liabilities and accrued expenses Warranty (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Other current liabilities and accrued expenses [Abstract] | ||||
Balance at beginning of period | $29,069 | $31,513 | $27,194 | $30,278 |
Provision for warranty | 12,065 | 10,468 | 32,535 | 30,745 |
Payments and charges against the accrual | -10,732 | -10,396 | -29,327 | -29,438 |
Balance at end of period | $30,402 | $31,585 | $30,402 | $31,585 |
Other_noncurrent_liabilities_D
Other noncurrent liabilities (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Other Liabilities, Noncurrent [Abstract] | ||
Customer obligations, net of current portion | $3,398 | $3,689 |
Noncurrent deferred revenue | 4,940 | 5,755 |
Other | 21,125 | 19,744 |
Other noncurrent liabilities | $29,463 | $29,188 |
Restructuring_and_other_charge2
Restructuring and other charges Restructing Detail (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Restructuring and Related Activities [Abstract] | ||||
Restructuring and other charges | $1,454 | $5,374 | $4,263 | $8,964 |
Severance costs | 2,987 | 4,517 | ||
Business exit costs | 1,276 | 368 | ||
Other restructuring costs | 1,800 | |||
Asset Impairment Charges | $2,279 |
Restructuring_and_other_charge3
Restructuring and other charges Restructuring Rollforward Table (Details) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | |||||||||||||||||||||||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 |
Employee Severance | Employee Severance | Employee Severance | Employee Severance | Employee Severance | Employee Severance | Business Exit Costs | Business Exit Costs | Business Exit Costs | Business Exit Costs | Business Exit Costs | Business Exit Costs | Other Restructuring | Other Restructuring | Other Restructuring | Other Restructuring | Other Restructuring | Other Restructuring | Total Restructuring | Total Restructuring | Total Restructuring | Total Restructuring | Total Restructuring | Total Restructuring | |||||
Restructuring Cost and Reserve | ||||||||||||||||||||||||||||
Restructuring reserve, beginning of period | $1,437 | $2,111 | $3,573 | $1,252 | $2,776 | $2,539 | $102 | $86 | $106 | $203 | $37 | $386 | $0 | $0 | $0 | $0 | $0 | $0 | $1,539 | $2,197 | $3,679 | $1,455 | $2,813 | $2,925 | ||||
Restructuring and other charges | 1,454 | 5,374 | 4,263 | 8,964 | 1,421 | 1,196 | 370 | 2,969 | -138 | 1,686 | 33 | 932 | 311 | 126 | 230 | 12 | 0 | 0 | 0 | 0 | 1,800 | 0 | 1,454 | 2,128 | 681 | 3,095 | 1,892 | 1,698 |
Payments for restructuring | -6,093 | -5,671 | -1,086 | -1,870 | -1,832 | -409 | -1,386 | -1,449 | -58 | -916 | -331 | -202 | -64 | -361 | 0 | 0 | 0 | 0 | -1,800 | 0 | -1,144 | -2,786 | -2,163 | -611 | -3,250 | -1,810 | ||
Restructuring reserve, end of period | $1,772 | $1,437 | $2,111 | $3,812 | $1,252 | $2,776 | $77 | $102 | $86 | $127 | $203 | $37 | $0 | $0 | $0 | $0 | $0 | $0 | $1,849 | $1,539 | $2,197 | $3,939 | $1,455 | $2,813 |
Restructuring_and_other_charge4
Restructuring and other charges Significant Components (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | |||||||||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 |
Total Expected Costs | Total Expected Costs | Total Expected Costs | Restructuring Charges | Restructuring Charges | Restructuring Charges | Restructuring Charges | Restructuring Charges | Restructuring Charges | Restructuring Charges | Restructuring Charges | Restructuring Charges | Estimated Future Expense | Estimated Future Expense | Estimated Future Expense | |||||
2013 | 2012 | 2011 | 2013 | 2013 | 2013 | 2012 | 2012 | 2012 | 2011 | 2011 | 2011 | 2013 | 2012 | 2011 | |||||
Restructuring Cost and Reserve | |||||||||||||||||||
Severance costs | $2,987 | $4,517 | $2,245 | $4,512 | $4,518 | $2,245 | $0 | $0 | $742 | $3,738 | $0 | $0 | $1,635 | $2,883 | $0 | $32 | $0 | ||
Business exit costs | 1,276 | 368 | 1,027 | 1,219 | 801 | 527 | 0 | 0 | 749 | 410 | 0 | 0 | 241 | 560 | 500 | 60 | 0 | ||
Other restructuring costs | 1,800 | 1,687 | 0 | 1,687 | 0 | 0 | |||||||||||||
Restructuring and other charges | $1,454 | $5,374 | $4,263 | $8,964 | $3,272 | $7,418 | $5,319 | $2,772 | $0 | $0 | $1,491 | $5,835 | $0 | $0 | $1,876 | $3,443 | $500 | $92 | $0 |
Debt_Details
Debt (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Long-term Debt | $295,667 | $284,892 |
Capital leases | 2,479 | 3,053 |
Less current maturities | -3,542 | -3,470 |
Long-term debt less current maturities | 294,604 | 284,475 |
Asset-Based Revolving Credit Facility, First Amendment | ||
Long-term Debt | 0 | 0 |
Term B Loan Facility | ||
Long-term Debt | 0 | 284,892 |
Amended and Restated Term B Loan Facility | ||
Long-term Debt | $295,667 | $0 |
Debt_Future_Maturities_of_Long
Debt Future Maturities of Long Term Debt (Details) (USD $) | Sep. 30, 2013 |
In Thousands, unless otherwise specified | |
Debt Future Maturities of Long Term Debt [Abstract] | |
2013 (remaining) | $1,012 |
2014 | 3,390 |
2015 | 3,407 |
2016 | 3,423 |
2017 | 3,353 |
Thereafter | $285,646 |
Debt_First_Amendment_AssetBase
Debt First Amendment Asset-Based Revolving Credit Facility (Details) (Asset-Based Revolving Credit Facility, First Amendment, USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 |
Debt Instrument | |
Line of credit facility, maximum borrowing capacity | $95,000 |
Line of credit facility, additional borrowing capacity | 20,000 |
Line of credit facility, fair value of amount outstanding | 0 |
Letters of credit outstanding, amount | 2,860 |
Line of credit facility, current borrowing capacity | $70,196 |
Line of credit facility, commitment fee percentage | 0.38% |
Minimum | |
Debt Instrument | |
Debt instrument, basis spread on fixed rate | 0.50% |
Debt instrument, basis spread on variable rate | 1.50% |
Maximum | |
Debt Instrument | |
Debt instrument, basis spread on fixed rate | 1.00% |
Debt instrument, basis spread on variable rate | 2.00% |
Debt_Amended_and_Restated_Term
Debt Amended and Restated Term B Loan Facility (Details) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | |||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Mar. 31, 2013 | Sep. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 |
Amended and Restated Term B Loan Facility | Amended and Restated Term B Loan Facility | Amended and Restated Term B Loan Facility | Term B Loan Facility | Term B Loan Facility | |||||
Debt Instrument | |||||||||
Debt instrument, face amount | $300,000 | $286,978 | |||||||
Debt instrument, unamortized discount | 750 | ||||||||
Debt instrument, interest rate, stated percentage rate range, minimum | 1.25% | ||||||||
Debt instrument, basis spread on variable rate | 3.00% | ||||||||
Debt instrument, periodic payment, principal | 750 | ||||||||
Debt, weighted average interest rate | 4.25% | 4.25% | |||||||
Loss on extinguishment of debt and refinancing fees | 0 | 0 | 4,256 | 0 | 4,256 | ||||
Long-term debt, fair value | 298,867 | 298,867 | 290,029 | ||||||
Fair value, option, aggregate differences, long-term debt instruments | 3,200 | 3,200 | 5,137 | ||||||
Covenant agreement, minimum payment missed to fall into default | $5,000 | $5,000 |
Debt_Short_Term_Debt_Details
Debt Short Term Debt (Details) (USD $) | Sep. 30, 2013 |
In Thousands, unless otherwise specified | |
South Korea | |
Short-term Debt | |
Short-term debt, number of lenders | 4 |
Line of credit facility, maximum borrowing capacity | $16,735 |
Line of credit facility, amount outstanding | 3,254 |
Short-term debt, weighted average interest rate | 3.44% |
Hungary | |
Short-term Debt | |
Short-term debt, number of lenders | 2 |
Line of credit facility, maximum borrowing capacity | 4,240 |
Line of credit facility, amount outstanding | $18 |
Short-term debt, weighted average interest rate | 2.28% |
Debt_Capital_Lease_Details
Debt Capital Lease (Details) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 |
Debt Disclosure [Abstract] | ||
Capital lease, capitalization rate lower bound | 4.50% | |
Capital lease, capitalization rate higher bound | 15.10% | |
Capital leases, balance sheet, assets by major class, net | $3,582 | $3,883 |
Stockholders_equity_Details
Stockholders' equity (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Stockholders' Equity Attributable to Parent [Abstract] | ||||||||
Total shares authorized | 280,000,000 | |||||||
Common Stock, shares authorized | 240,000,000 | |||||||
Common Stock, par value | $0.00 | $0.00 | $0.00 | |||||
Preferred Stock, shares authorized | 40,000,000 | |||||||
Preferred Stock, par or stated value per share | $0.00 | |||||||
Common Stock, shares outstanding | 32,006,216 | 32,006,216 | 31,865,008 | |||||
Preferred Stock, shares outstanding | 0 | 0 | ||||||
Treasury Stock, shares acquired | 67,087 | |||||||
Purchase of treasury stock | ($1,248) | |||||||
Dividends declared per common share | $0.10 | $0.10 | $0.10 | $0.10 | $0.10 | $0.30 | $0.20 | |
Payments of ordinary dividends, common stock | -9,462 | -6,128 | ||||||
Dividends payable | $444 | $444 |
Reclassifications_out_of_accum2
Reclassifications out of accumulated other comprehensive income (loss) Changes in Accumulated Other Comprehensive Income (Loss) (Details) (USD $) | 3 Months Ended | |||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 |
Beginning Balance | ($62,656) | ($55,199) | ($50,307) | ($59,578) | ($53,446) | ($65,730) |
Other comprehensive income (loss) before reclassifications | 10,632 | -7,007 | -4,109 | 6,921 | -8,261 | 10,418 |
Amounts reclassified from accumulated other comprehensive income (loss) | -394 | -450 | -783 | 879 | 2,129 | 1,866 |
Ending Balance | -52,418 | -62,656 | -55,199 | -51,778 | -59,578 | -53,446 |
Accumulated Translation Adjustment | ||||||
Beginning Balance | -25,290 | -23,032 | -19,860 | -24,947 | -20,234 | -22,624 |
Other comprehensive income (loss) before reclassifications | 5,566 | -2,258 | -3,172 | 2,226 | -4,713 | 2,390 |
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | 0 | 0 | 0 | 0 | 0 |
Ending Balance | -19,724 | -25,290 | -23,032 | -22,721 | -24,947 | -20,234 |
Accumulated Defined Benefit Plans Adjustment | ||||||
Beginning Balance | -25,613 | -25,535 | -25,983 | -23,432 | -23,222 | -23,161 |
Other comprehensive income (loss) before reclassifications | -105 | -154 | 102 | -62 | 21 | 45 |
Amounts reclassified from accumulated other comprehensive income (loss) | 210 | 76 | 346 | 40 | -231 | -106 |
Ending Balance | -25,508 | -25,613 | -25,535 | -23,454 | -23,432 | -23,222 |
Foreign Exchange Contract | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges | ||||||
Beginning Balance | -744 | 2,858 | 3,426 | -2,656 | -3,938 | -9,513 |
Other comprehensive income (loss) before reclassifications | 3,472 | -2,498 | 513 | 4,158 | -152 | 4,390 |
Amounts reclassified from accumulated other comprehensive income (loss) | -1,556 | -1,104 | -1,081 | 529 | 1,434 | 1,185 |
Ending Balance | 1,172 | -744 | 2,858 | 2,031 | -2,656 | -3,938 |
Commodity Contract | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges | ||||||
Beginning Balance | -10,059 | -7,646 | -6,316 | -6,969 | -4,478 | -8,858 |
Other comprehensive income (loss) before reclassifications | 1,762 | -2,991 | -1,282 | 599 | -3,417 | 3,593 |
Amounts reclassified from accumulated other comprehensive income (loss) | 952 | 578 | -48 | 310 | 926 | 787 |
Ending Balance | -7,345 | -10,059 | -7,646 | -6,060 | -6,969 | -4,478 |
Interest Rate Swap | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges | ||||||
Beginning Balance | -950 | -1,844 | -1,574 | -1,574 | -1,574 | -1,574 |
Other comprehensive income (loss) before reclassifications | -63 | 894 | -270 | 0 | 0 | 0 |
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | 0 | 0 | 0 | 0 | 0 |
Ending Balance | ($1,013) | ($950) | ($1,844) | ($1,574) | ($1,574) | ($1,574) |
Reclassifications_out_of_accum3
Reclassifications out of accumulated other comprehensive income (loss) Reclassifications Out of Accumulated Other Comprehensive Income (Loss) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Cost of goods sold | $210,600 | $222,592 | $664,996 | $686,943 |
Total before tax | 15,648 | 12,049 | 35,630 | 50,437 |
Tax (expense) or benefit | 5,292 | -85,310 | 11,967 | -74,410 |
Net of tax | 10,356 | 96,532 | 23,004 | 122,683 |
Reclassification out of Accumulated Other Comprehensive Income | ||||
Net of tax | 394 | -879 | 1,627 | -4,877 |
Reclassification out of Accumulated Other Comprehensive Income | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges | ||||
Total before tax | 505 | -2,188 | 2,455 | -6,950 |
Tax (expense) or benefit | 99 | 1,349 | -196 | 1,777 |
Net of tax | 604 | -839 | 2,259 | -5,173 |
Reclassification out of Accumulated Other Comprehensive Income | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges | Foreign Exchange Contract | ||||
Cost of goods sold | 2,068 | -580 | 4,887 | -3,627 |
Reclassification out of Accumulated Other Comprehensive Income | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges | Commodity Contract | ||||
Cost of goods sold | -1,563 | -1,608 | -2,432 | -3,323 |
Reclassification out of Accumulated Other Comprehensive Income | Accumulated Defined Benefit Plans Adjustment | ||||
Prior-service costs | 454 | 419 | 1,362 | 1,256 |
Actuarial losses | -800 | -188 | -2,400 | -689 |
Total before tax | -346 | 231 | -1,038 | 567 |
Tax (expense) or benefit | 136 | -271 | 406 | -271 |
Net of tax | ($210) | ($40) | ($632) | $296 |
Income_taxes_income_taxes_Deta
Income taxes income taxes (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||||
Current income tax expense (benefit) | $5,292 | ($85,310) | $11,967 | ($74,410) | |
Current federal tax expense (benefit) | 1,356 | -84,705 | 2,844 | -84,705 | |
Current state and local tax expense (benefit) | 961 | 22 | 793 | 655 | |
Current foreign tax expense (benefit) | 2,975 | -627 | 8,330 | 9,640 | |
Unrecognized tax benefits | 11,769 | 11,769 | 10,350 | ||
Unrecognized tax benefits, period increase (decrease) | -210 | 225 | 1,419 | 775 | |
Valuation allowance, deferred tax asset, change in amount | $84,705 |
Employee_benefit_plans_Details
Employee benefit plans (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Defined Benefit Plan Disclosure | ||||
Current year contributions | $2,585 | $2,094 | ||
Pension benefits: | ||||
Defined Benefit Plan Disclosure | ||||
Service costs | 273 | 73 | 754 | 219 |
Interest costs | 693 | 653 | 2,066 | 1,958 |
Expected return on plan assets | -665 | -534 | -1,982 | -1,631 |
Recognized net actuarial loss | 344 | 311 | 1,032 | 1,058 |
Net periodic cost (benefit) | 645 | 503 | 1,870 | 1,604 |
Postretirement health care and life insurance plans: | ||||
Defined Benefit Plan Disclosure | ||||
Interest costs | 19 | 24 | 58 | 73 |
Amortization of prior service cost | -454 | -419 | -1,362 | -1,256 |
Recognized net actuarial loss | 456 | -123 | 1,368 | -369 |
Net periodic cost (benefit) | 21 | -518 | 64 | -1,552 |
United States | ||||
Defined Benefit Plan Disclosure | ||||
Total expected current year contributions | 1,748 | |||
International | ||||
Defined Benefit Plan Disclosure | ||||
Total expected current year contributions | $1,717 |
Stockbased_compensation_Detail
Stock-based compensation (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Mar. 31, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Allocated share-based compensation expense | $1,648 | $1,883 | $4,894 | $5,419 | |
Share-based compensation arrangement by share-based payment award, number of shares authorized | 5,500,000 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 3,425,416 | 3,425,416 | |||
Share-based compensation arrangement by share-based payment award, options, grants in period, weighted average grant date fair value | $7.58 | ||||
Share-based compensation arrangement by share-based payment award, fair value assumptions, risk free interest rate | 0.86% | ||||
Share-based compensation arrangement by share-based payment award, fair value assumptions, expected dividend rate | 2.16% | ||||
Share-based compensation arrangement by share-based payment award, fair value assumptions, expected volatility rate | 56.70% | ||||
Share-based compensation arrangement by share-based payment award, fair value assumptions, expected term | 5 years | ||||
Executive Officers and Key Employees | |||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Share-based compensation arrangement by share-based payment award, shares issued in period | 224,507 | ||||
Award allocation percentage, time based, shares | 50.00% | ||||
Award allocation percentage, performance based, shares | 50.00% | ||||
Annual vesting percentage, time based, shares | 33.00% | ||||
Annual vesting percentage, performance based, shares | 33.00% | ||||
Share-based compensation arrangement by share-based payment award, equity instruments other than options, grants in period, weighted average grant date fair value | $18.47 | ||||
Share-based compensation arrangement by share-based payment award, options, grants in period, gross | 234,675 | ||||
Share-based compensation arrangement by share-based payment award, options, outstanding, weighted average exercise price | $18.47 | $18.47 | |||
Board of Directors | |||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Share-based compensation arrangement by share-based payment award, shares issued in period | 32,164 | ||||
Annual vesting percentage, years one and two, shares | 50.00% | ||||
Share-based compensation arrangement by share-based payment award, equity instruments other than options, grants in period, weighted average grant date fair value | $18.50 | ||||
Share-based compensation arrangement by share-based payment award, options, grants in period, gross | 33,618 | ||||
Share-based compensation arrangement by share-based payment award, options, outstanding, weighted average exercise price | $18.50 | $18.50 |
Business_segment_and_geographi2
Business segment and geographical information (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Segment Reporting Information | ||||
Net sales | $262,832 | $277,401 | $826,908 | $865,282 |
United States | ||||
Segment Reporting Information | ||||
Net sales | 172,706 | 188,013 | 550,728 | 579,981 |
Europe | ||||
Segment Reporting Information | ||||
Net sales | 21,571 | 25,201 | 68,092 | 79,722 |
Other Americas | ||||
Segment Reporting Information | ||||
Net sales | 14,663 | 14,074 | 45,457 | 42,127 |
Asia Pacific | ||||
Segment Reporting Information | ||||
Net sales | $53,892 | $50,113 | $162,631 | $163,452 |
Other_commitments_and_continge1
Other commitments and contingencies (Details) (USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 |
Other commitments and contingencies [Abstract] | |
Counterclaim Damages Sought, Value | $111 |
Loss Contingency, Damages Sought | 110,000 |
Loss Contingency Accrual | $0 |
Executive_officer_separation_D
Executive officer separation (Details) (USD $) | 3 Months Ended | 9 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2013 | Sep. 30, 2013 |
Executive officer separation [Abstract] | ||
Executive Officer Separation, Payment | $7,000 | |
Executive Officer Separation, Diluted Earnings Per Share Impact | $0.14 |
Purchase_of_noncontrolling_int1
Purchase of noncontrolling interest (Details) (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Jun. 30, 2013 |
Purchase of noncontrolling interest [Abstract] | |
Noncontrolling Interest, Ownership Percentage by Parent Prior to Purchase | 51.00% |
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners Prior to Purchase | 49.00% |
Noncontrolling Interest, Acquisition Value | $14,628 |
Cash Payments to Noncontrolling Interests, Excluding Dividends | 8,107 |
Noncontrolling Interest Dividends in Excess of Ownership Percentage | 6,521 |
Adjustments to Additional Paid in Capital for Purchase of Noncontrolling Interest | $9,166 |