Document and entity information
Document and entity information - shares | 6 Months Ended | |
Jun. 30, 2015 | Jul. 29, 2015 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | Remy International, Inc. | |
Entity Central Index Key | 1,046,859 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 31,802,084 | |
Ticker Symbol | REMY | |
Entity Well-known Seasoned Issuer | No | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes |
Consolidated balance sheets
Consolidated balance sheets - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 102,446 | $ 84,885 |
Trade accounts receivable (less allowances of $1,973 and $1,519) | 228,821 | 210,356 |
Other receivables | 13,970 | 16,692 |
Inventories | 191,777 | 164,143 |
Deferred income taxes | 35,715 | 42,308 |
Prepaid expenses and other current assets | 12,713 | 11,865 |
Total current assets | 585,442 | 530,249 |
Property, plant and equipment | 231,665 | 226,073 |
Less accumulated depreciation and amortization | (75,225) | (61,615) |
Property, plant and equipment, net | 156,440 | 164,458 |
Deferred financing costs, net of amortization | 1,341 | 1,471 |
Goodwill | 263,491 | 259,586 |
Intangibles, net | 279,877 | 298,023 |
Other noncurrent assets | 47,844 | 65,309 |
Total assets | 1,334,435 | 1,319,096 |
Current liabilities: | ||
Short-term debt | 5,793 | 7,761 |
Current maturities of long-term debt | 3,489 | 3,509 |
Accounts payable | 183,797 | 177,333 |
Accrued interest | 121 | 94 |
Accrued restructuring | 420 | 331 |
Other current liabilities and accrued expenses | 113,607 | 128,509 |
Total current liabilities | 307,227 | 317,537 |
Long-term debt, net of current maturities | 340,191 | 298,295 |
Postretirement benefits other than pensions | 1,378 | 1,484 |
Accrued pension benefits | 33,310 | 34,267 |
Deferred income taxes | 49,683 | 54,783 |
Other noncurrent liabilities | 26,992 | 26,483 |
Remy International, Inc. stockholders' equity: | ||
Common stock, Par value of $0.0001; 31,811,724 shares outstanding at June 30, 2015, and 32,201,086 shares outstanding at December 31, 2014 | 3 | 3 |
Treasury stock, at cost; 634,064 treasury shares at June 30, 2015, and no treasury shares at December 31, 2014 | (11,062) | 0 |
Additional paid-in capital | 598,115 | 595,627 |
Retained earnings | 8,972 | 0 |
Accumulated other comprehensive loss | (20,374) | (9,383) |
Total Remy International, Inc. stockholders' equity | 575,654 | 586,247 |
Total liabilities and equity | $ 1,334,435 | $ 1,319,096 |
Consolidated balance sheets Par
Consolidated balance sheets Parentheticals - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Current assets: | ||
Allowance for doubtful accounts | $ 1,973 | $ 1,583 |
Stockholders' Equity: | ||
Common Stock, par value | $ 0.0001 | $ 0.0001 |
Common Stock, shares outstanding | 31,811,724 | 32,201,086 |
Treasury Stock, shares outstanding | 634,064 | 0 |
Consolidated statements of oper
Consolidated statements of operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Income Statement [Abstract] | ||||
Net sales | $ 271,997 | $ 302,910 | $ 575,408 | $ 608,915 |
Cost of goods sold | 237,151 | 252,913 | 478,560 | 512,567 |
Gross profit | 34,846 | 49,997 | 96,848 | 96,348 |
Selling, general, and administrative expenses | 30,906 | 35,890 | 64,326 | 68,821 |
Restructuring and other charges | 371 | 79 | 444 | 393 |
Operating income | 3,569 | 14,028 | 32,078 | 27,134 |
Interest expense–net | 4,123 | 5,337 | 9,134 | 10,591 |
Income (loss) before income taxes | (554) | 8,691 | 22,944 | 16,543 |
Income tax expense | 396 | 3,661 | 7,324 | 6,569 |
Net income (loss) | $ (950) | $ 5,030 | $ 15,620 | $ 9,974 |
Basic earnings (loss) per share: | ||||
Earnings (loss) per share | $ (0.03) | $ 0.16 | $ 0.49 | $ 0.31 |
Weighted average shares outstanding | 31,674 | 31,787 | 31,759 | 31,720 |
Diluted earnings (loss) per share: | ||||
Earnings (loss) per share | $ (0.03) | $ 0.16 | $ 0.49 | $ 0.3 |
Weighted average shares outstanding | 31,674 | 31,866 | 31,842 | 31,844 |
Dividends declared per common share | $ 0.11 | $ 0.10 | $ 0.21 | $ 0.20 |
Consolidated statements of comp
Consolidated statements of comprehensive income (loss) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Net income (loss) | $ (950) | $ 5,030 | $ 15,620 | $ 9,974 |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustments | (910) | 5,644 | (8,903) | 6,441 |
Employee benefit plans, net of tax | (85) | (139) | 165 | 502 |
Total other comprehensive income (loss), net of tax | (2,386) | 9,087 | (10,991) | 6,126 |
Comprehensive income (loss) | (3,336) | 14,117 | 4,629 | 16,100 |
Foreign Exchange Contract | ||||
Other comprehensive income (loss): | ||||
Derivative contracts, net of tax | (1,161) | 2,136 | (344) | 614 |
Commodity Contract | ||||
Other comprehensive income (loss): | ||||
Derivative contracts, net of tax | (306) | 1,856 | (1,226) | 264 |
Interest Rate Swap | ||||
Other comprehensive income (loss): | ||||
Derivative contracts, net of tax | $ 76 | $ (410) | $ (353) | $ (691) |
Consolidated statements of cash
Consolidated statements of cash flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 15,620 | $ 9,974 |
Adjustments to reconcile net income to cash provided by (used in) operating activities: | ||
Depreciation and amortization | 36,031 | 36,664 |
Stock-based compensation | 2,325 | 2,561 |
Deferred income taxes | 1,020 | (5,192) |
Accrued pension and postretirement benefits, net | (1,119) | (2,123) |
Restructuring and other charges | 444 | 393 |
Cash payments for restructuring charges | (355) | (1,266) |
Other | 1,602 | 263 |
Changes in operating assets and liabilities, net of restructuring charges: | ||
Accounts receivable | (11,357) | (39,230) |
Inventories | (16,936) | (13,998) |
Accounts payable | 4,865 | 19,939 |
Other current assets and liabilities, net | (19,913) | 979 |
Other noncurrent assets and liabilities, net | 16,105 | (12,908) |
Net cash provided by (used in) operating activities | 28,332 | (3,944) |
Cash flows from investing activities: | ||
Purchases of property, plant and equipment | (10,412) | (11,830) |
Net proceeds on sale of assets | 29 | 80 |
Net cash used in investing activities | (32,383) | (51,820) |
Cash flows from financing activities: | ||
Change in short-term debt | (1,904) | 4,930 |
Proceeds from borrowings on Asset-Based Revolving Credit Facility | 155,750 | 0 |
Payments made on Asset-Based Revolving Credit Facility | (112,150) | 0 |
Payments made on long-term debt, including capital leases | (1,756) | (1,693) |
Dividend payments on common stock | (6,800) | (6,548) |
Purchase of treasury stock | (11,062) | (2,505) |
Other | 1,634 | 1,227 |
Net cash provided by (used in) financing activities | 23,712 | (4,589) |
Effect of exchange rate changes on cash and cash equivalents | (2,100) | 1,619 |
Net increase (decrease) in cash and cash equivalents | 17,561 | (58,734) |
Cash and cash equivalents at beginning of period | 84,885 | 114,884 |
Cash and cash equivalents at end of period | 102,446 | 56,150 |
Supplemental disclosure information: | ||
Income Taxes Paid, Net | 6,004 | 9,251 |
Interest Paid | 8,835 | 9,779 |
Accounts Payable | ||
Noncash investing and financing activities: | ||
Purchases of property, plant and equipment | 1,808 | 2,816 |
Maval Acquisition [Member] | ||
Cash flows from investing activities: | ||
Acquisition of USA Industries, Inc., net of cash acquired of $109 | (22,000) | 0 |
USA Industries Acquisition [Member] | ||
Cash flows from investing activities: | ||
Acquisition of USA Industries, Inc., net of cash acquired of $109 | $ 0 | $ (40,070) |
Consolidated statements of cas7
Consolidated statements of cash flows (Parentheticals) $ in Thousands | 6 Months Ended |
Jun. 30, 2014USD ($) | |
USA Industries Acquisition [Member] | |
Cash Acquired from Acquisition | $ 109 |
Description of the business
Description of the business | 6 Months Ended |
Jun. 30, 2015 | |
Description of the business [Abstract] | |
Description of the business | 1. Description of the business Business Remy International, Inc. (together with its subsidiaries are collectively referred to as “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 trucks, heavy-duty trucks and other vehicles. We sell our products worldwide primarily under the "Delco Remy", "Remy", "World Wide Automotive", "USA Industries", and "Maval" 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, hybrid power technology, and multi-line products, such as constant velocity ("CV") axles, disc brake calipers, and steering gears. 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. 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 for commercial vehicle applications. BorgWarner Transaction On July 12, 2015, we entered into an Agreement and Plan of Merger ("Merger Agreement") with BorgWarner Inc. ("BorgWarner") and Band Merger Sub, Inc., a wholly owned subsidiary of BorgWarner (“Merger Sub”) pursuant to which it is expected that we will merge with and into Merger Sub, with the Company surviving the merger as a wholly-owned subsidiary of BorgWarner (the "BorgWarner Transaction"). The Merger Agreement provides that at the effective time of the merger, if it occurs, each of the outstanding shares of Remy common stock (other than certain shares owned by BorgWarner, Merger Sub, Remy or any subsidiary of BorgWarner, Merger Sub or Remy, and shares that are owned by Remy stockholders who have perfected and not withdrawn a demand for appraisal rights pursuant to Delaware law) will be cancelled and converted into $29.50 in cash, without interest. The consummation of the BorgWarner Transaction is subject to the satisfaction or waiver of specified closing conditions, including (i) the approval of the Merger Agreement by stockholders representing a majority of our outstanding shares of common stock, (ii) the expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, (iii) the making or obtaining of any filings, authorizations, consents or approvals regarding the Merger Agreement required pursuant to Antitrust Laws (as defined in the Merger Agreement) in Austria, Germany, China, Korea and Mexico and the termination or expiration of any applicable waiting period thereunder and (iv) other customary closing conditions, including (a) the accuracy of each party’s representations and warranties (subject to customary materiality qualifiers), (b) each party’s compliance with its agreements and covenants contained in the Merger Agreement and (c) the absence of any law, ordinance, rule, regulation, order, judgment or decree being in effect that restrains or enjoins, or otherwise prohibits or makes illegal, the consummation of the BorgWarner Transaction. The Merger Agreement may be terminated by us or BorgWarner under certain circumstances. In some of those circumstances, we may be required to pay BorgWarner a termination fee of $28,313,000 (or in certain limited circumstances, a lower termination fee of $14,156,000 ) in connection with the termination of the Merger Agreement. Assuming the timely satisfaction of closing conditions, the BorgWarner Transaction is expected to close during the fourth quarter of 2015. Spin-off and Merger Transactions On August 14, 2012, Fidelity National Special Opportunities, Inc., (now known as Fidelity National Financial Ventures, LLC., or "FNFV"), a wholly-owned subsidiary of Fidelity National Financial, Inc. ("FNF"), a leading provider of title insurance, mortgage services and restaurant and diversified services, increased its ownership position in Remy Holdings, Inc. ("Old Remy") (formerly known as Remy International, Inc.), above 50% (the "Acquisition"). As a result, FNF began consolidating Old Remy's financial results in the third quarter of 2012. On September 7, 2014, we entered into agreements for a transaction (the "Spin-off Transaction") with FNF. On December 31, 2014, the Spin-off Transaction was completed pursuant to the merger agreement, which was approved by Old Remy's stockholders at a special meeting of stockholders held on the same date. The Spin-off Transaction in effect resulted in the indirect distribution of the shares of common stock of Old Remy that were held by FNF to the holders of its FNFV tracking stock. In the Spin-off Transaction, FNFV contributed all of the 16,342,508 shares of Old Remy's common stock that FNFV owned and a small subsidiary, Fidelity National Technology Imaging ("Imaging"), into a newly-formed subsidiary ("New Remy"). New Remy was then distributed to FNFV shareholders. Immediately following the distribution of New Remy to FNFV shareholders, New Remy and Old Remy each engaged in stock-for-stock mergers with subsidiaries of a new publicly-traded holding company, New Remy Holdco Corp. ("New Holdco"). The Spin-off Transaction in effect resulted in New Holdco becoming the new public parent of Old Remy. Effective upon the closing of the Spin-off Transaction on December 31, 2014, New Holdco changed its name to "Remy International, Inc." and its shares were listed, and on January 2, 2015 began trading, on NASDAQ under the trading symbol "REMY", which was the same trading symbol used by Old Remy. Old Remy changed its name from "Remy International, Inc." to "Remy Holdings, Inc." During the six months ended June 30, 2015 , Imaging received $1,400,000 from FNF as part of a working capital adjustment in accordance with the Merger Agreement, which was previously included in other receivables at December 31, 2014. |
Summary of significant accounti
Summary of significant accounting policies | 6 Months Ended |
Jun. 30, 2015 | |
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, 2014 . 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. 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 $38,917,000 and $38,541,000 as of June 30, 2015 and December 31, 2014 , respectively. 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 and is recorded as a component of cost of goods sold. 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 and assumed the additional 272,851 shares issued in respect of the contribution of Imaging were outstanding for the entire period under common control, or August 2012 through December 31, 2014. 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 June 30, 2015 , in applying the treasury stock method, equivalent shares of unvested restricted stock and stock options of 65,390 shares were anti-dilutive and excluded from the diluted calculation. For the three months ended June 30, 2014 , in applying the treasury stock method, equivalent shares of unvested restricted stock and stock options of 78,525 shares were included in the weighted average shares outstanding in the diluted calculation. Anti-dilutive stock options of 555,428 and 273,723 were excluded from the calculation of dilutive earnings per share for the three months ended June 30, 2015 and 2014 , respectively. For the six months ended June 30, 2015 and 2014 , in applying the treasury stock method, equivalent shares of unvested restricted stock and stock options of 83,670 and 124,502 shares, respectively, were included in the weighted average shares outstanding in the diluted calculation. Anti-dilutive stock options of 462,371 and 299,612 were excluded from the calculation of dilutive earnings per share for the six months ended June 30, 2015 and 2014 , respectively. New accounting pronouncements In July 2015, the FASB issued ASU 2015-11, Simplifying the Measurement of Inventory to simplify the guidance on the subsequent measurement of inventory, excluding inventory measured using last-in, first out or the retail inventory method. Under the new standard, inventory should be at the lower of cost and net realizable value. The new accounting guidance is effective for interim and annual periods beginning after December 15, 2016 with early adoption permitted. We are evaluating the effect this guidance will have on our consolidated financial statements and related disclosures. We have not yet selected a transition method nor have we determined the effect of the standard on our ongoing financial reporting. In April 2015, the FASB issued ASU 2015-03, Interest- Imputation of Interest (Simplifying the Presentation of Debt Issuance Costs) . This update changes the presentation of debt issuance costs in financial statements. Under ASU 2015-03, an entity presents such costs in the balance sheet as a direct deduction from the related debt liability rather than as an asset. Amortization of the debt issuance costs is reported as interest expense. This update is effective for annual and interim periods beginning after December 15, 2015, which will require us to adopt these provisions in the first quarter of 2016. Early application is permitted for financial statements that have not been previously issued. Entities would be permitted to apply this update retrospectively to all prior periods for which a balance sheet is presented. We are evaluating the effect this guidance will have on our consolidated financial statements and related disclosures. We have not yet selected a transition method nor have we determined the effect of the standard on our ongoing financial reporting. In April 2015, the FASB issued ASU 2015-05, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement. This update provides guidance to clarify the customer’s accounting for fees paid in a cloud computing arrangement. If a cloud computing arrangement includes a software license, then the customer should account for the software license element of the arrangement consistent with the acquisition of other software license. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. This guidance is effective for annual and interim periods beginning after December 15, 2015. Early application is permitted. We are evaluating the effect this guidance will have on our consolidated financial statements and related disclosures. We have not yet selected a transition method nor have we determined the effect of the standard on our ongoing financial reporting. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) . This update provides a comprehensive new revenue recognition model that requires a company to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. The guidance also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts. This update was originally effective for annual and interim periods beginning after December 15, 2016, however, in July 2015 the FASB voted to defer the effective date to annual and interim periods beginning after December 15, 2017. Early application is permitted but not before the original effective date. This update permits the use of either the retrospective or cumulative effect transition method. We are evaluating the effect this guidance will have on our consolidated financial statements and related disclosures. We have not yet selected a transition method nor have we determined the effect of the standard on our ongoing financial reporting. |
Fair value measurements
Fair value measurements | 6 Months Ended |
Jun. 30, 2015 | |
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 June 30, 2015 and December 31, 2014 , are set forth in the table below: As of June 30, 2015 As of December 31, 2014 (In thousands) Asset/ (liability) Level 2 Valuation technique Asset/ (liability) Level 2 Valuation technique Interest rate swap contracts $ (4,114 ) $ (4,114 ) C $ (2,848 ) $ (2,848 ) C Foreign exchange contracts (7,877 ) (7,877 ) C (7,339 ) (7,339 ) C Commodity contracts (5,317 ) (5,317 ) C (4,088 ) (4,088 ) 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) and certain assets acquired in business acquisitions (see Note 20). 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 | 6 Months Ended |
Jun. 30, 2015 | |
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 eighteen months to hedge against currency rate fluctuations, and are designated as hedges. As of June 30, 2015 and December 31, 2014 , we had the following outstanding foreign currency contracts that were entered into to hedge forecasted purchases and revenues, respectively: (In thousands) Currency denomination June 30, December 31, Foreign currency contract 2015 2014 South Korean Won $ 66,720 $ 82,907 Mexican Peso $ 56,271 $ 69,625 Brazilian Real $ 2,526 $ 12,318 Hungarian Forint € 13,785 € 12,646 Great Britain Pound £ — £ 300 Accumulated unrealized net losses of $(5,006,000) and $(4,662,000) were recorded in accumulated other comprehensive income (loss) (AOCI) as of June 30, 2015 and December 31, 2014 , respectively. As of June 30, 2015 , losses of $(5,002,000) are expected to be reclassified to the consolidated statement of operations within the next twelve months. Any ineffectiveness during the six months ended June 30, 2015 and 2014 , respectively, was immaterial. Interest rate risk 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 losses of $(863,000) and $(282,000) , excluding the tax effect, were recorded in accumulated other comprehensive income (loss) (AOCI) as of June 30, 2015 , and December 31, 2014 , respectively. As of June 30, 2015 , no gains are expected to be reclassified to the consolidated statement of operations within the next twelve months. Any ineffectiveness during the three month periods ended June 30, 2015 and 2014 , respectively, 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 thirty-four commodity price hedge contracts outstanding at June 30, 2015 , and thirty-seven commodity price hedge contracts outstanding at December 31, 2014 , with combined notional quantities of 8,966 and 8,196 metric tons of copper, respectively. These contracts mature within the next eighteen months. These contracts were designated as cash flow hedging instruments. Accumulated unrealized losses of $(5,259,000) and $(4,092,000) , excluding the tax effect, were recorded in AOCI as of June 30, 2015 and December 31, 2014 , respectively. As of June 30, 2015 , pre-tax losses of $(4,875,000) are expected to be reclassified to the accompanying consolidated statement of operations within the next 12 months. Any ineffectiveness during the six months ended June 30, 2015 and 2014 , respectively, was immaterial. Other We present our derivative positions and any related material collateral under master netting agreements on a gross basis. We have entered into International Swaps and Derivatives Association agreements with each of its significant derivative counterparties. These agreements provide bilateral netting and offsetting of accounts that are in a liability position with those that are in an asset position. These agreements do not require us to maintain a minimum credit rating in order to be in compliance with the terms of the agreements and do not contain any margin call provisions or collateral requirements that could be triggered by derivative instruments in a net liability position. As of June 30, 2015 , we have not posted any collateral to support derivatives in a liability position. 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 June 30, 2015 December 31, 2014 Balance sheet location June 30, 2015 December 31, 2014 Derivatives designated as hedging instruments: Commodity contracts Prepaid expenses and other current assets $ — $ — Other current liabilities and accrued expenses $ 4,925 $ 3,515 Commodity contracts Other noncurrent assets 56 — Other noncurrent liabilities 448 573 Foreign currency contracts Prepaid expenses and other current assets 424 869 Other current liabilities and accrued expenses 7,749 7,316 Foreign currency contracts Other noncurrent assets — — Other noncurrent liabilities 552 892 Interest rate swap contracts Other noncurrent assets — — Other noncurrent liabilities 863 282 Total derivatives designated as hedging instruments $ 480 $ 869 $ 14,537 $ 12,578 Derivatives not designated as hedging instruments: Interest rate swap contracts Other noncurrent assets $ — $ — Other noncurrent liabilities $ 3,251 $ 2,566 Total derivatives not designated as hedging instruments $ — $ — $ 3,251 $ 2,566 The following tables disclose the effect of our derivative instruments on the accompanying consolidated statement of operations for the three months ended June 30, 2015 (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 $ (1,776 ) Cost of goods sold $ (1,273 ) Cost of goods sold $ (23 ) Foreign currency contracts (2,946 ) Cost of goods sold (1,483 ) Cost of goods sold — Interest rate swap contracts 124 Interest expense–net — Interest expense–net — $ (4,598 ) $ (2,756 ) $ (23 ) 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 $ 105 The following tables disclose the effect of our derivative instruments on the accompanying consolidated statement of operations for the three months ended June 30, 2014 (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 $ 1,784 Cost of goods sold $ (1,262 ) Cost of goods sold $ 22 Foreign currency contracts 3,909 Cost of goods sold 1,512 Cost of goods sold — Interest rate swap contracts (672 ) Interest expense–net — Interest expense–net — $ 5,021 $ 250 $ 22 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 $ (656 ) The following tables disclose the effect of our derivative instruments on the accompanying consolidated statement of operations for the six months ended June 30, 2015 (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 $ (3,699 ) Cost of goods sold $ (2,532 ) Cost of goods sold $ (42 ) Foreign currency contracts (2,913 ) Cost of goods sold (2,684 ) Cost of goods sold — Interest rate swap contracts (580 ) Interest expense–net — Interest expense–net — $ (7,192 ) $ (5,216 ) $ (42 ) 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 $ (685 ) The following tables disclose the effect of our derivative instruments on the accompanying consolidated statement of operations for the six months ended June 30, 2014 (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 $ (1,777 ) Cost of goods sold $ (2,324 ) Cost of goods sold $ (15 ) Foreign currency contracts 2,784 Cost of goods sold 2,409 Cost of goods sold — Interest rate swap contracts (1,134 ) Interest expense–net — Interest expense–net — $ (127 ) $ 85 $ (15 ) 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 $ (1,333 ) 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 U.S. 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 June 30, 2015 and 2014 was $673,000 and $1,292,000 , respectively. The cost of factoring such accounts receivable for the six months ended June 30, 2015 and 2014 was $1,436,000 and $2,546,000 , respectively. Gross amounts factored under these facilities as of June 30, 2015 and December 31, 2014 were $175,055,000 and $229,696,000 , respectively. Any change in the availability of these factoring arrangements could have a material adverse effect on our financial condition. |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2015 | |
Inventory [Abstract] | |
Inventory Disclosure | 5. Inventories Net inventories consisted of the following: June 30, December 31, (In thousands) 2015 2014 Raw materials $ 58,041 $ 46,049 Core inventory 36,845 36,034 Work-in-process 9,363 7,827 Finished goods 87,528 74,233 $ 191,777 $ 164,143 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 | 6 Months Ended |
Jun. 30, 2015 | |
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 six months ended June 30, 2015 and 2014 was $12,721,000 and $13,384,000 , respectively. |
Goodwill and other intangible a
Goodwill and other intangible assets | 6 Months Ended |
Jun. 30, 2015 | |
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 June 30, 2015 As of December 31, 2014 (In thousands) Carrying value Accumulated amortization Net Carrying value Accumulated amortization Net Definite-life intangibles: Intellectual property $ 28,628 $ 3,905 $ 24,723 $ 27,833 $ 2,980 $ 24,853 Customer relationships 210,270 61,508 148,762 206,960 50,558 156,402 Customer contract 81,516 61,901 19,615 93,642 63,285 30,357 Trade names 500 33 467 — — — Lease intangible 420 320 100 420 219 201 Total 321,334 127,667 193,667 328,855 117,042 211,813 Indefinite-life intangibles: Trade names 86,210 — 86,210 86,210 — 86,210 Intangible assets, net $ 407,544 $ 127,667 $ 279,877 $ 415,065 $ 117,042 $ 298,023 Goodwill $ 263,491 $ — $ 263,491 $ 259,586 $ — $ 259,586 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. On March 1, 2015, we completed our previously announced acquisition of substantially all assets of Maval Manufacturing, Inc. pursuant to the terms and conditions of a definitive agreement. See Note 20 for further information. As a result of the acquisition, we assigned preliminary values to all assets and liabilities acquired, including the customer relationships intangible of $3,310,000 with a useful life of 10 years , $500,000 to value the Maval trade name with a useful life of 5 years , and $3,905,000 to goodwill in the preliminary purchase price allocation during the six months ended June 30, 2015 . Trade names were valued based on the relief of royalty approach. This method allocates value based on what the Company would be willing to pay as a royalty to a third-party owner of the intellectual property or trade name in order to exploit the economic benefits. Customer relationships were valued using an excess earnings approach after considering a fair return on fixed assets, working capital, trade names, intellectual property, and assembled workforce. During the six months ended June 30, 2015 , we had intellectual property additions of $795,000 which were related to patent defense and filing costs. The weighted average useful life of these intellectual property intangibles was 15 years as of June 30, 2015 . During the six months ended June 30, 2015 , we had customer contract intangible additions of approximately $726,000 , with a weighted average useful life of 4.3 years based on the estimated useful life of the contracts. |
Other noncurrent assets
Other noncurrent assets | 6 Months Ended |
Jun. 30, 2015 | |
Other noncurrent assets [Abstract] | |
Other Assets Disclosure | 8. Other noncurrent assets Other noncurrent assets primarily consisted of core return rights of $21,453,000 and noncurrent deferred tax assets of $12,159,000 as of June 30, 2015 . Other noncurrent assets primarily consisted of core return rights of $38,940,000 and noncurrent deferred tax assets of $12,028,000 as of December 31, 2014 . |
Other current liabilities and a
Other current liabilities and accrued expenses | 6 Months Ended |
Jun. 30, 2015 | |
Other current liabilities and accrued expenses [Abstract] | |
Other current liabilities and accrued expenses | 9. Other current liabilities and accrued expenses Other current liabilities and accrued expenses consisted of the following: June 30, December 31, (In thousands) 2015 2014 Accrued warranty $ 25,805 $ 22,583 Accrued wages and benefits 16,486 18,784 Current portion of customer obligations 1,576 2,234 Rebates, stocklifts, discounts and returns 16,092 20,282 Current deferred revenue 796 865 Other 52,852 63,761 $ 113,607 $ 128,509 Changes to our current and noncurrent accrued warranty were as follows: Three months ended June 30, Six months ended June 30, (In thousands) 2015 2014 2015 2014 Balance at beginning of period $ 27,711 $ 32,489 $ 26,012 $ 30,781 Provision for warranty 11,328 9,047 21,892 21,218 Payments and charges against the accrual (9,748 ) (11,709 ) (18,973 ) (23,535 ) Increased warranty accruals due to business acquisitions (Note 20) — — 360 1,363 Balance at end of period $ 29,291 $ 29,827 $ 29,291 $ 29,827 |
Other noncurrent liabilities
Other noncurrent liabilities | 6 Months Ended |
Jun. 30, 2015 | |
Other Liabilities, Noncurrent [Abstract] | |
Other noncurrent liabilities | 10. Other noncurrent liabilities Other noncurrent liabilities consisted of the following: June 30, December 31, (In thousands) 2015 2014 Noncurrent deferred revenue $ 3,590 $ 3,967 Other 23,402 22,516 $ 26,992 $ 26,483 |
Restructuring and other charges
Restructuring and other charges | 6 Months Ended |
Jun. 30, 2015 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Activities Disclosure | 11. Restructuring and other charges Total restructuring and other charges of $444,000 were recorded for the six months ended June 30, 2015 . These charges consisted of $205,000 of employee termination benefits and $239,000 of other exit costs. Total restructuring and other charges of $393,000 were recorded during the six months ended June 30, 2014 . These charges consisted of $230,000 of employee termination benefits and $163,000 of other exit costs. The charges in both periods were primarily related to the closure of our Mezokovesd, Hungary plant and restructuring actions in our North American operations. The following table summarizes the activity in our accrual for restructuring and other charges for the three and six month periods ended June 30, (in thousands): 2015 Termination benefits Exit costs Total Accrual at December 31, 2014 $ 259 $ 72 $ 331 Provision 15 58 73 Payments (54 ) (73 ) (127 ) Accrued at March 31, 2015 $ 220 $ 57 $ 277 Provision 190 181 371 Payments (33 ) (195 ) (228 ) Accrual at June 30, 2015 $ 377 $ 43 $ 420 2014 Termination benefits Exit costs Total Accrual at December 31, 2013 $ 981 $ 45 $ 1,026 Provision 228 86 314 Payments (950 ) (106 ) (1,056 ) Accrued at March 31, 2014 $ 259 $ 25 $ 284 Provision 2 77 79 Payments (113 ) (97 ) (210 ) Accrual at June 30, 2014 $ 148 $ 5 $ 153 Significant components of restructuring and other charges were as follows (in thousands): Total expected costs Expense incurred in Estimated future expense Six months ended June 30, 2015 Twelve months ended December 31, 2014 Twelve months ended December 31, 2013 2014 Activities Severance $ 1,347 $ 205 $ 1,066 $ — $ 76 Exit costs 1,111 161 950 — — $ 2,458 $ 366 $ 2,016 $ — $ 76 2013 Activities Severance $ 1,976 $ — $ 220 $ 1,756 $ — Exit costs 696 — 4 692 — $ 2,672 $ — $ 224 $ 2,448 $ — 2012 Activities Severance $ 4,533 $ — $ — $ 795 $ — Exit costs 1,633 78 267 823 54 Other charges 1,687 — — — — $ 7,853 $ 78 $ 267 $ 1,618 $ 54 |
Debt
Debt | 6 Months Ended |
Jun. 30, 2015 | |
Debt Disclosure [Abstract] | |
Debt Disclosure | 12. Debt Borrowings under long-term debt arrangements, net of discounts, consisted of the following: June 30, December 31, (In thousands) 2015 2014 Asset-Based Revolving Credit Facility- Maturity date of September 5, 2018 $ 43,600 $ — Term B Loan, as Amended and Restated - Maturity date of March 5, 2020 292,173 293,637 Total Senior Credit Facility and Notes 335,773 293,637 Capital leases and other obligations 7,907 8,167 Less current maturities (3,489 ) (3,509 ) Long-term debt less current maturities $ 340,191 $ 298,295 On December 31, 2014, in connection with the completion of the Spin-off Transaction, Remy International, Inc. and certain subsidiaries entered into a Second Amendment to the Asset-Based Revolving Credit Facility (“ABL Facility”) and a Second Amendment and Restatement of the Term B Loan Credit Agreement (“Term B Loan”) (collectively, the “Amendments”). The Amendments permitted the Spin-off Transaction to occur, added New Remy Holdco Corp. and New Remy Corp. as guarantors of the obligations under the foregoing credit facilities, and made conforming changes to reflect the effects of the Spin-off Transaction. There are no other changes that materially modify the foregoing credit facilities. The ABL Facility 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 Facility maintains the current availability at $95,000,000 , but may be increased, under certain circumstances, by $20,000,000 . The ABL Facility is secured by substantially all domestic accounts receivable and inventory. At June 30, 2015 , the ABL Facility balance was $43,600,000 . Based upon the collateral supporting the ABL Facility, the amount borrowed, and the outstanding letters of credit of $2,310,000 , there was additional availability for borrowing of $46,146,000 on June 30, 2015 . We will incur an unused commitment fee of 0.375% on the unused amount of commitments under the ABL Facility. The 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 Term B Loan also contains an option to increase the borrowing provided certain conditions are satisfied, including maintaining a maximum leverage ratio. The 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 Facility. 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 Term B Loan is subject to an excess cash calculation which may require the payment of additional principal on an annual basis. At June 30, 2015 , the average borrowing rate, including the impact of the interest rate swaps, was 4.25% . On March 5, 2013, we entered into a First Amendment to our existing Asset-Based Revolving Credit Facility ("ABL First Amendment") to extend the maturity date of the Asset-Based Revolving Credit Facility from December 17, 2015 to September 5, 2018 and reduce the borrowing rate. 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. As of June 30, 2015 , the estimated fair value of our Term B Loan was $294,512,000 , which was $2,339,000 more than the carrying value. As of December 31, 2014 , the estimated fair value of our Term B Loan was $290,693,000 , which was $2,944,000 less than the carrying value. The Level 2 fair market values are based on established market prices as of June 30, 2015 and December 31, 2014 . 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 June 30, 2015 . 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 three Korean banks with a total facility amount of approximately $11,565,000 of which $1,779,000 was borrowed at an average interest rate of 2.61% at June 30, 2015 . In Hungary, there is one revolving credit facility with one bank for a total credit facility of $1,038,000 of which $1,014,000 was borrowed at an average interest rate of 2.1% at June 30, 2015 . In China there is a revolving credit facility with one bank for a total credit facility of $10,000,000 of which $3,000,000 was borrowed at an average interest rate of 2.04% at June 30, 2015 . Capital leases and other obligations Capital leases have been capitalized using nominal interest rates ranging from 4.0% to 15.1% as determined by the dates we entered into the leases. We had assets under capital leases of approximately $2,593,000 at June 30, 2015 and approximately $2,810,000 at December 31, 2014 , net of accumulated amortization. On December 29, 2014, we entered into a leaseback financing arrangement with an independent third party involving the sale of a distribution facility with a net book value of approximately $11,207,000 at June 30, 2015 and $11,855,000 at December 31, 2014. We continue to maintain the facility on our books and have included the proceeds from the sale of the facility as a financing obligation totaling $5,800,000 bearing an implied interest rate of 6.5% . |
Stockholders' equity
Stockholders' equity | 6 Months Ended |
Jun. 30, 2015 | |
Stockholders' Equity Attributable to Parent [Abstract] | |
Stockholders' Equity Note Disclosure | 13. Stockholders' equity Common stock and preferred stock In connection with the Spin-off Transaction closing on December 31, 2014, we amended our Amended and Restated Certificate of Incorporation, which is substantially identical to Old Remy's Amended and Restated Certificate of Incorporation in effect immediately prior to the closing of the Spin-off Transaction. The rights of stockholders after the closing of the Spin-off Transaction, as a matter of state law and under the relevant organizational documents, are fundamentally the same as the rights of stockholders that were in effect immediately prior to the consummation of the Spin-off Transaction. Under the Amended and Restated Certificate of Incorporation, the Company is authorized 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 June 30, 2015 , there were 31,811,724 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. Share Repurchase Program On February 18, 2015, the Board of Directors approved a share repurchase program, effective February 23, 2015, under which we may repurchase up to $100,000,000 of our outstanding common stock shares. Purchases may be made from time to time in the open market at prevailing prices or in privately negotiated transactions through February 28, 2018 . During the three months ended June 30, 2015 , we paid approximately $9,932,000 in repurchases of our common stock ( 447,725 shares at an average purchase price of $22.18 per share, excluding commission costs). As of June 30, 2015 , the amount remaining under the Board's share repurchase authorization was $90,068,000 . The Merger Agreement entered into in connection with the BorgWarner Transaction generally prohibits us from making further repurchases of our common stock. Treasury stock During the six months ended June 30, 2015 , we withheld 47,772 shares at cost, or $1,130,000 , to satisfy tax obligations for vesting of restricted stock shares and exercises of stock options granted to our employees under the Remy International, Inc. Omnibus Incentive Plan, or "Omnibus Incentive Plan". In addition, 117,457 shares were forfeited and returned to treasury stock during the six months ended June 30, 2015 for no value pursuant to the Omnibus Incentive Plan. During the six months ended June 30, 2014 , we withheld 114,291 shares at cost, or $2,505,000 , to satisfy tax obligations for vesting of restricted stock shares and exercises of stock options granted to our employees under the Omnibus Incentive Plan. In addition, 74,892 shares were forfeited and returned to treasury stock during the six months ended June 30, 2014 for no value pursuant to the Omnibus Incentive Plan. Dividend payments Our Board of Directors declared quarterly cash dividends of ten cents ( $0.10 ) per share in February 2015 and eleven cents ( $0.11 ) per share in April 2015. Cash dividends paid during the six months ended June 30, 2015 were $6,800,000 , which also included accrued cash dividends paid on restricted stock vestings. As of June 30, 2015 , a dividend payable of $114,000 was recorded for unvested restricted stock and is payable upon vesting. On July 30, 2015 , our Board of Directors declared a quarterly cash dividend of eleven cents ( $0.11 ) per share, payable on August 28, 2015 , to stockholders of record as of August 14, 2015 . |
Reclassifications out of accumu
Reclassifications out of accumulated other comprehensive income (loss) (Notes) | 6 Months Ended |
Jun. 30, 2015 | |
Reclassifications Out of Accumulated Other Comprehensive Income (Loss) [Abstract] | |
Comprehensive Income (Loss) Note [Text Block] | 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 six months ended June 30, 2015 (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, 2014 $ 1,590 $ (4,662 ) $ (1,955 ) $ (172 ) $ (4,184 ) $ (9,383 ) Other comprehensive income (loss) before reclassifications (7,993 ) (82 ) (1,698 ) (429 ) (105 ) (10,307 ) Amounts reclassified from accumulated other comprehensive income (loss) — 899 778 — 25 1,702 Balances at March 31, 2015 $ (6,403 ) $ (3,845 ) $ (2,875 ) $ (601 ) $ (4,264 ) $ (17,988 ) Other comprehensive income (loss) before reclassifications (910 ) (2,295 ) (1,096 ) 76 (110 ) (4,335 ) Amounts reclassified from accumulated other comprehensive income (loss) — 1,134 790 — 25 1,949 Balances at June 30, 2015 $ (7,313 ) $ (5,006 ) $ (3,181 ) $ (525 ) $ (4,349 ) $ (20,374 ) The following table discloses the changes in each component of accumulated other comprehensive income, net of tax for the three and six months ended June 30, 2014 (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, 2013 $ 9,441 $ 2,753 $ (1,776 ) $ 886 $ 7,866 $ 19,170 Other comprehensive income (loss) before reclassifications 797 (886 ) (2,264 ) (281 ) (463 ) (3,097 ) Amounts reclassified from accumulated other comprehensive income (loss) — (636 ) 672 — 100 136 Balances at March 31, 2014 $ 10,238 $ 1,231 $ (3,368 ) $ 605 $ 7,503 $ 16,209 Other comprehensive income (loss) before reclassifications 5,644 3,298 1,101 (410 ) (241 ) 9,392 Amounts reclassified from accumulated other comprehensive income (loss) — (1,162 ) 755 — 102 (305 ) Balances at June 30, 2014 $ 15,882 $ 3,367 $ (1,512 ) $ 195 $ 7,364 $ 25,296 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 June 30, Affected Line Item in the Statement Where Net Income is Presented 2015 2014 Gains (losses) on cash flow hedges: Foreign currency contracts $ (1,483 ) $ 1,512 Cost of goods sold Commodity contracts (1,296 ) (1,240 ) Cost of goods sold (2,779 ) 272 Total before tax 855 135 Tax benefit (expense) $ (1,924 ) $ 407 Net of tax Amortization of employee benefit plan costs: Prior service costs $ — $ — Selling, general and administrative expenses Net actuarial loss (29 ) (167 ) Selling, general and administrative expenses (29 ) (167 ) Total before tax 4 65 Tax benefit (expense) $ (25 ) $ (102 ) Net of tax Total reclassifications for the period $ (1,949 ) $ 305 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 Six months ended June 30, Affected Line Item in the Statement Where Net Income is Presented 2015 2014 Gains (losses) on cash flow hedges: Foreign currency contracts $ (2,684 ) $ 2,409 Cost of goods sold Commodity contracts (2,574 ) (2,339 ) Cost of goods sold (5,258 ) 70 Total before tax 1,657 301 Tax benefit (expense) $ (3,601 ) $ 371 Net of tax Amortization of employee benefit plan costs: Prior service costs $ — $ — Selling, general and administrative expenses Net actuarial loss (58 ) (331 ) Selling, general and administrative expenses (58 ) (331 ) Total before tax 8 129 Tax benefit (expense) $ (50 ) $ (202 ) Net of tax Total reclassifications for the period $ (3,651 ) $ 169 Net of tax |
Income taxes
Income taxes | 6 Months Ended |
Jun. 30, 2015 | |
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. 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. The effective income tax rate for the three and six months ended June 30, 2015 and 2014 , differs from the U.S. federal income tax rate primarily due to the effect of foreign taxable income, tax credits, and permanent items. Income Taxes - Bilateral Advance Pricing Agreement As previously disclosed, the Company has applied for a bilateral Advance Pricing Agreement ("APA") between the U.S. and South Korea, covering the tax years 2007 through 2014. The Korean and U.S. tax authorities met in July 2015, and have tentatively agreed on the terms of the APA, subject to additional review and approvals by the respective tax authorities and the Company. The terms of the agreement are not disclosed to the Company until agreements are finalized. However some limited information has been provided which the Company is currently reviewing and analyzing the impacts. While final adjustments have not been determined by either the U.S. or South Korea tax authorities, a final agreement may result in income tax expense of up to $20,000,000 and cash outflow of up to $44,000,000 . |
Employee benefit plans
Employee benefit plans | 6 Months Ended |
Jun. 30, 2015 | |
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 our pension plans were as follows (in thousands): Three months ended June 30, Six months ended June 30, Components of expense 2015 2014 2015 2014 Service costs $ 325 $ 289 $ 650 $ 565 Interest costs 762 755 1,524 1,507 Expected return on plan assets (761 ) (768 ) (1,522 ) (1,534 ) Recognized net actuarial loss (gain) 53 (147 ) 106 (291 ) Net periodic pension cost $ 379 $ 129 $ 758 $ 247 Cash flows We contributed $1,695,000 and $1,809,000 to our pension plans during the six months ended June 30, 2015 and 2014 , respectively. We expect to contribute a total of $2,041,000 to our U.S. pension plans and $2,004,000 to our international pension plans in 2015 . |
Stock-based compensation
Stock-based compensation | 6 Months Ended |
Jun. 30, 2015 | |
Share-based Compensation [Abstract] | |
Disclosure of Compensation Related Costs, Share-based Payments | 17. Stock-based compensation Omnibus Incentive Plan The Omnibus Incentive Plan, which is stockholder-approved, became effective on October 27, 2010, was amended on March 24, 2011 and permits our Compensation Committee of the Board of Directors 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. Actual participation, as well as the terms of the awards to those participants, is determined by the Compensation Committee. The maximum number of shares authorized that may be delivered pursuant to awards under the Omnibus Incentive Plan was 5,500,000 . As of June 30, 2015 , there were 2,790,000 shares available to be issued under the Omnibus Incentive Plan. On February 23, 2015 , executive officers and other key employees received restricted stock awards of 150,280 common shares with a weighted average grant date value of $23.01 , 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 2015, 2016 and 2017 based on a target operating income for each of the years. Also on February 23, 2015 , we granted an additional time-based restricted stock award of 22,816 common shares which will vest 100% on the first anniversary of the grant date. Additionally, executive officers and other key employees were granted 305,753 stock option awards which vest equally over a three-year period with a term of seven years and a weighted average exercise price of $23.01 . On March 6, 2015 , an additional time-based restricted stock award of 15,000 common shares was granted with a grant date value of $22.62 based on the closing price of our common stock on the grant date as reported on the NASDAQ Stock Market. This award will vest 100% on the third anniversary of the grant date. In May 2015, additional new hire restricted stock awards of 30,558 common shares (including performance shares) were granted with a weighted average grant date value of $21.76 based on the closing price of our common stock on the respective grant dates as reported on the NASDAQ Stock Market. These awards have the same terms and conditions as the awards granted on February 23, 2015 as discussed above. Also in May 2015, we granted new hires 64,980 stock option awards which vest equally over a three-year period with a term of seven years and a weighted average exercise price of $21.76 . Also on February 23, 2015 , our Board of Directors received restricted stock awards of 22,815 common shares and stock option awards of 46,418 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 $23.01 , 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 $23.01 . We estimated the grant date fair value of all stock options granted during the six months ended June 30, 2015 using the Black-Scholes valuation model. The weighted average valuation per share was $4.78 based on the following assumptions: Risk-free interest rate: 1.41% , Dividend Yield: 1.78% , Expected Volatility: 27.94% and Expected Term: 4.5 years. Shares issued upon exercise of stock options were 7,036 and 2,397 during the six months ended June 30, 2015 and 2014 , respectively. Noncash compensation expense related to all types of awards was recognized for the three and six months ended June 30, 2015 and 2014 as follows: Three months ended June 30, Six months ended June 30, (In thousands) 2015 2014 2015 2014 Stock-based compensation expense $ 1,009 $ 1,342 $ 2,325 $ 2,561 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 eligible participants or we assume unvested equity awards in connection with acquisitions. |
Business segment and geographic
Business segment and geographical information | 6 Months Ended |
Jun. 30, 2015 | |
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 June 30, Six months ended June 30, (In thousands) 2015 2014 2015 2014 Net sales to external customers: United States $ 171,422 $ 196,509 $ 375,930 $ 401,127 Europe 18,107 22,788 37,870 45,863 Other Americas 9,300 11,857 18,109 22,737 Asia 73,168 71,756 143,499 139,188 Total net sales $ 271,997 $ 302,910 $ 575,408 $ 608,915 |
Other commitments and contingen
Other commitments and contingencies | 6 Months Ended |
Jun. 30, 2015 | |
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, including those relating to commercial transactions, product liability, safety, health, taxes, environmental and other matters. We believe that none of such actions, other than those discussed below, depart from customary litigation arising in the ordinary course of business. 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 has been recorded in our accompanying consolidated financial statements. For legal proceedings where it has been determined that a loss is either probable but the amount or range of loss is not reasonably estimable, or reasonably possible, we provide disclosure with respect to the matter. Actual losses may materially differ from the amounts recorded and the ultimate outcomes of our pending cases are generally not yet determinable. At present we do not believe that the ultimate resolution of currently pending legal proceedings, either individually or in the aggregate, will have a material adverse effect on our financial condition. However, litigation matters are inherently uncertain, and we cannot currently quantify our ultimate liability for unresolved litigation matters. As a result, it is possible that such liability could materially affect our consolidated financial position or our results of operations or cash flows for an individual reporting period. Remy Componentes S. de R.L. de C.V. vs. Corporativo Industrial y Empresarial Lorva, S.A. de C.V. ("Lorva") In December 2012, Lorva, a former vendor, filed a judicial claim against Old Remy in the Fourth District federal court in San Luis Potosi, Mexico requesting the rescission of two alleged operational service contracts. We filed a timely response in the Fourth District Court in January 2013. The collection of evidence and witness testimony concluded in the civil case, and the parties filed their written closing argument briefs in the fourth quarter of 2013. In March 2014, the first instance sentence was issued by the Fourth District Court determining Lorva has the right to rescind both contracts and collect the benefit sought in the amount of approximately $17,380,000 for liquidated damages and outstanding invoices. In April 2014, we filed an appeal of this ruling in the Unitary Tribunal in San Luis Potosi, Mexico. On October 2, 2014, the Unitary Tribunal in San Luis Potosi, Mexico ruled on the appeal, reducing the March 2014 lower Fourth District Court award from $17,380,000 to payment of invoices and amounts due of $121,000 plus Lorva's costs and attorney fees. Both Lorva and Old Remy filed a timely appeal of this ruling in the 4th Collegiate Tribunal in San Luis Potosi, Mexico in October 2014. In February 2015, the 4th Collegiate Tribunal sent instructions to the Unitary Tribunal to consider the evidence presented that supports Remy's allegation that the contract is fraudulent and rule on that evidence. In March 2015, the Unitary Tribunal reissued the same judgment as in their prior October 2014 ruling, as a result, Remy filed an appeal with the 4th Collegiate Tribunal in April 2015. We believe it is probable that we should prevail on final appeal based on legal arguments and the facts of this case. As of June 30, 2015 , we continue to maintain an immaterial accrual related to this matter. Remy, Inc. vs. Tecnomatic S.p.A. In March 2011, Tecnomatic filed a lawsuit against Remy International, Inc., its Mexican subsidiaries and two other entities alleging breach of contract and the misappropriation of trade secrets, and requested damages of $110,000,000 . On September 11, 2014, we announced entry into a Settlement Agreement and Mutual General Release (the "Agreement") to settle all disputes that existed among us and Tecnomatic. In addition, we entered into a cross licensing arrangement of certain patents with Tecnomatic. The value of the patents received from Tecnomatic was approximately $13,930,000 . Pursuant to the Agreement and the cross licensing arrangement, we paid to Tecnomatic a $16,000,000 cash payment in September 2014 and paid a $16,000,000 cash payment during the six months ended June 30, 2015 . |
Acquisition (Notes)
Acquisition (Notes) | 6 Months Ended |
Jun. 30, 2015 | |
Acquisitions [Abstract] | |
Mergers, Acquisitions and Dispositions Disclosures | 20. Acquisition Acquisition of Maval Manufacturing, Inc. On February 19, 2015, we announced that we entered into a definitive agreement to acquire substantially all of the assets of Maval Manufacturing, Inc., a manufacturer, remanufacturer, and distributor of steering systems, components, and specialty products to the automotive service, original equipment power sports, and off-road specialty vehicle markets. The transaction closed effective March 1, 2015. In connection with the closing of the transaction, the assets were placed in Maval Industries, L.L.C. ("Maval"), a wholly-owned subsidiary of the Company. The results of operations of Maval have been included in our consolidated results of operations since the acquisition date. Preliminary purchase price was $22,000,000 , consisting of $18,700,000 in cash and $3,300,000 cash held in escrow. The initial purchase price allocation based on their fair values as of the acquisition date was as follows: Trade accounts receivable $ 8,011 Inventories 14,065 Prepaid expenses and other current assets 25 Property, plant and equipment 1,764 Goodwill 3,905 Intangible assets 3,810 Other noncurrent assets 22 Total assets acquired $ 31,602 Accounts payable $ 6,674 Other current liabilities and accrued expenses 2,928 Total liabilities acquired $ 9,602 Net assets acquired $ 22,000 Goodwill of $3,905,000 , which is deductible for tax purposes, has been recorded based on the amount of the purchase price that exceeds the fair value of the net assets acquired. The purchase price allocation is preliminary as of June 30, 2015 as we finalize our valuation of long lived assets and any contingent liabilities. For the three months ended June 30, 2015 , we recognized customer relationships and trade name amortization of $108,000 , which was included in cost of goods sold in the accompanying consolidated statement of operations. For the six months ended June 30, 2015 , we recognized a finished goods inventory step-up of $587,000 and customer relationships and trade name amortization of $144,000 , which was included in cost of goods sold in the accompanying consolidated statement of operations. |
Summary of significant accoun28
Summary of significant accounting policies (Policies) | 6 Months Ended |
Jun. 30, 2015 | |
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. |
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 $38,917,000 and $38,541,000 as of June 30, 2015 and December 31, 2014 , respectively. 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 and is recorded as a component of cost of goods sold. 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 and assumed the additional 272,851 shares issued in respect of the contribution of Imaging were outstanding for the entire period under common control, or August 2012 through December 31, 2014. 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 June 30, 2015 , in applying the treasury stock method, equivalent shares of unvested restricted stock and stock options of 65,390 shares were anti-dilutive and excluded from the diluted calculation. For the three months ended June 30, 2014 , in applying the treasury stock method, equivalent shares of unvested restricted stock and stock options of 78,525 shares were included in the weighted average shares outstanding in the diluted calculation. Anti-dilutive stock options of 555,428 and 273,723 were excluded from the calculation of dilutive earnings per share for the three months ended June 30, 2015 and 2014 , respectively. |
Recently Adopted Accounting Standards, Policy | New accounting pronouncements In July 2015, the FASB issued ASU 2015-11, Simplifying the Measurement of Inventory to simplify the guidance on the subsequent measurement of inventory, excluding inventory measured using last-in, first out or the retail inventory method. Under the new standard, inventory should be at the lower of cost and net realizable value. The new accounting guidance is effective for interim and annual periods beginning after December 15, 2016 with early adoption permitted. We are evaluating the effect this guidance will have on our consolidated financial statements and related disclosures. We have not yet selected a transition method nor have we determined the effect of the standard on our ongoing financial reporting. In April 2015, the FASB issued ASU 2015-03, Interest- Imputation of Interest (Simplifying the Presentation of Debt Issuance Costs) . This update changes the presentation of debt issuance costs in financial statements. Under ASU 2015-03, an entity presents such costs in the balance sheet as a direct deduction from the related debt liability rather than as an asset. Amortization of the debt issuance costs is reported as interest expense. This update is effective for annual and interim periods beginning after December 15, 2015, which will require us to adopt these provisions in the first quarter of 2016. Early application is permitted for financial statements that have not been previously issued. Entities would be permitted to apply this update retrospectively to all prior periods for which a balance sheet is presented. We are evaluating the effect this guidance will have on our consolidated financial statements and related disclosures. We have not yet selected a transition method nor have we determined the effect of the standard on our ongoing financial reporting. In April 2015, the FASB issued ASU 2015-05, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement. This update provides guidance to clarify the customer’s accounting for fees paid in a cloud computing arrangement. If a cloud computing arrangement includes a software license, then the customer should account for the software license element of the arrangement consistent with the acquisition of other software license. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. This guidance is effective for annual and interim periods beginning after December 15, 2015. Early application is permitted. We are evaluating the effect this guidance will have on our consolidated financial statements and related disclosures. We have not yet selected a transition method nor have we determined the effect of the standard on our ongoing financial reporting. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) . This update provides a comprehensive new revenue recognition model that requires a company to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. The guidance also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts. This update was originally effective for annual and interim periods beginning after December 15, 2016, however, in July 2015 the FASB voted to defer the effective date to annual and interim periods beginning after December 15, 2017. Early application is permitted but not before the original effective date. This update permits the use of either the retrospective or cumulative effect transition method. We are evaluating the effect this guidance will have on our consolidated financial statements and related disclosures. We have not yet selected a transition method nor have we determined the effect of the standard on our ongoing financial reporting. |
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) and certain assets acquired in business acquisitions (see Note 20). 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 | Other We present our derivative positions and any related material collateral under master netting agreements on a gross basis. We have entered into International Swaps and Derivatives Association agreements with each of its significant derivative counterparties. These agreements provide bilateral netting and offsetting of accounts that are in a liability position with those that are in an asset position. These agreements do not require us to maintain a minimum credit rating in order to be in compliance with the terms of the agreements and do not contain any margin call provisions or collateral requirements that could be triggered by derivative instruments in a net liability position. As of June 30, 2015 , we have not posted any collateral to support derivatives in a liability position. 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 U.S. 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. 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, including those relating to commercial transactions, product liability, safety, health, taxes, environmental and other matters. We believe that none of such actions, other than those discussed below, depart from customary litigation arising in the ordinary course of business. 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 has been recorded in our accompanying consolidated financial statements. For legal proceedings where it has been determined that a loss is either probable but the amount or range of loss is not reasonably estimable, or reasonably possible, we provide disclosure with respect to the matter. Actual losses may materially differ from the amounts recorded and the ultimate outcomes of our pending cases are generally not yet determinable. At present we do not believe that the ultimate resolution of currently pending legal proceedings, either individually or in the aggregate, will have a material adverse effect on our financial condition. However, litigation matters are inherently uncertain, and we cannot currently quantify our ultimate liability for unresolved litigation matters. As a result, it is possible that such liability could materially affect our consolidated financial position or our results of operations or cash flows for an individual reporting period. |
Fair value measurements (Tables
Fair value measurements (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
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 June 30, 2015 and December 31, 2014 , are set forth in the table below: As of June 30, 2015 As of December 31, 2014 (In thousands) Asset/ (liability) Level 2 Valuation technique Asset/ (liability) Level 2 Valuation technique Interest rate swap contracts $ (4,114 ) $ (4,114 ) C $ (2,848 ) $ (2,848 ) C Foreign exchange contracts (7,877 ) (7,877 ) C (7,339 ) (7,339 ) C Commodity contracts (5,317 ) (5,317 ) C (4,088 ) (4,088 ) C |
Financial instruments (Tables)
Financial instruments (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Financial Instruments [Abstract] | |
Schedule of Derivative Instruments | As of June 30, 2015 and December 31, 2014 , we had the following outstanding foreign currency contracts that were entered into to hedge forecasted purchases and revenues, respectively: (In thousands) Currency denomination June 30, December 31, Foreign currency contract 2015 2014 South Korean Won $ 66,720 $ 82,907 Mexican Peso $ 56,271 $ 69,625 Brazilian Real $ 2,526 $ 12,318 Hungarian Forint € 13,785 € 12,646 Great Britain Pound £ — £ 300 |
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 June 30, 2015 December 31, 2014 Balance sheet location June 30, 2015 December 31, 2014 Derivatives designated as hedging instruments: Commodity contracts Prepaid expenses and other current assets $ — $ — Other current liabilities and accrued expenses $ 4,925 $ 3,515 Commodity contracts Other noncurrent assets 56 — Other noncurrent liabilities 448 573 Foreign currency contracts Prepaid expenses and other current assets 424 869 Other current liabilities and accrued expenses 7,749 7,316 Foreign currency contracts Other noncurrent assets — — Other noncurrent liabilities 552 892 Interest rate swap contracts Other noncurrent assets — — Other noncurrent liabilities 863 282 Total derivatives designated as hedging instruments $ 480 $ 869 $ 14,537 $ 12,578 Derivatives not designated as hedging instruments: Interest rate swap contracts Other noncurrent assets $ — $ — Other noncurrent liabilities $ 3,251 $ 2,566 Total derivatives not designated as hedging instruments $ — $ — $ 3,251 $ 2,566 |
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 six months ended June 30, 2015 (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 $ (3,699 ) Cost of goods sold $ (2,532 ) Cost of goods sold $ (42 ) Foreign currency contracts (2,913 ) Cost of goods sold (2,684 ) Cost of goods sold — Interest rate swap contracts (580 ) Interest expense–net — Interest expense–net — $ (7,192 ) $ (5,216 ) $ (42 ) 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 $ (685 ) The following tables disclose the effect of our derivative instruments on the accompanying consolidated statement of operations for the six months ended June 30, 2014 (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 $ (1,777 ) Cost of goods sold $ (2,324 ) Cost of goods sold $ (15 ) Foreign currency contracts 2,784 Cost of goods sold 2,409 Cost of goods sold — Interest rate swap contracts (1,134 ) Interest expense–net — Interest expense–net — $ (127 ) $ 85 $ (15 ) 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 $ (1,333 ) The following tables disclose the effect of our derivative instruments on the accompanying consolidated statement of operations for the three months ended June 30, 2015 (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 $ (1,776 ) Cost of goods sold $ (1,273 ) Cost of goods sold $ (23 ) Foreign currency contracts (2,946 ) Cost of goods sold (1,483 ) Cost of goods sold — Interest rate swap contracts 124 Interest expense–net — Interest expense–net — $ (4,598 ) $ (2,756 ) $ (23 ) 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 $ 105 The following tables disclose the effect of our derivative instruments on the accompanying consolidated statement of operations for the three months ended June 30, 2014 (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 $ 1,784 Cost of goods sold $ (1,262 ) Cost of goods sold $ 22 Foreign currency contracts 3,909 Cost of goods sold 1,512 Cost of goods sold — Interest rate swap contracts (672 ) Interest expense–net — Interest expense–net — $ 5,021 $ 250 $ 22 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 $ (656 ) |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Inventory [Abstract] | |
Schedule of Inventory, Current | Net inventories consisted of the following: June 30, December 31, (In thousands) 2015 2014 Raw materials $ 58,041 $ 46,049 Core inventory 36,845 36,034 Work-in-process 9,363 7,827 Finished goods 87,528 74,233 $ 191,777 $ 164,143 |
Goodwill and other intangible32
Goodwill and other intangible assets (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
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 June 30, 2015 As of December 31, 2014 (In thousands) Carrying value Accumulated amortization Net Carrying value Accumulated amortization Net Definite-life intangibles: Intellectual property $ 28,628 $ 3,905 $ 24,723 $ 27,833 $ 2,980 $ 24,853 Customer relationships 210,270 61,508 148,762 206,960 50,558 156,402 Customer contract 81,516 61,901 19,615 93,642 63,285 30,357 Trade names 500 33 467 — — — Lease intangible 420 320 100 420 219 201 Total 321,334 127,667 193,667 328,855 117,042 211,813 Indefinite-life intangibles: Trade names 86,210 — 86,210 86,210 — 86,210 Intangible assets, net $ 407,544 $ 127,667 $ 279,877 $ 415,065 $ 117,042 $ 298,023 Goodwill $ 263,491 $ — $ 263,491 $ 259,586 $ — $ 259,586 |
Other current liabilities and33
Other current liabilities and accrued expenses (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Other current liabilities and accrued expenses [Abstract] | |
Schedule of Accrued Liabilities | Other current liabilities and accrued expenses consisted of the following: June 30, December 31, (In thousands) 2015 2014 Accrued warranty $ 25,805 $ 22,583 Accrued wages and benefits 16,486 18,784 Current portion of customer obligations 1,576 2,234 Rebates, stocklifts, discounts and returns 16,092 20,282 Current deferred revenue 796 865 Other 52,852 63,761 $ 113,607 $ 128,509 |
Schedule of Product Warranty Liability | Changes to our current and noncurrent accrued warranty were as follows: Three months ended June 30, Six months ended June 30, (In thousands) 2015 2014 2015 2014 Balance at beginning of period $ 27,711 $ 32,489 $ 26,012 $ 30,781 Provision for warranty 11,328 9,047 21,892 21,218 Payments and charges against the accrual (9,748 ) (11,709 ) (18,973 ) (23,535 ) Increased warranty accruals due to business acquisitions (Note 20) — — 360 1,363 Balance at end of period $ 29,291 $ 29,827 $ 29,291 $ 29,827 |
Other noncurrent liabilities (T
Other noncurrent liabilities (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Other Liabilities, Noncurrent [Abstract] | |
Other Noncurrent Liabilities | Other noncurrent liabilities consisted of the following: June 30, December 31, (In thousands) 2015 2014 Noncurrent deferred revenue $ 3,590 $ 3,967 Other 23,402 22,516 $ 26,992 $ 26,483 |
Restructuring and other charg35
Restructuring and other charges (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
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 six month periods ended June 30, (in thousands): 2015 Termination benefits Exit costs Total Accrual at December 31, 2014 $ 259 $ 72 $ 331 Provision 15 58 73 Payments (54 ) (73 ) (127 ) Accrued at March 31, 2015 $ 220 $ 57 $ 277 Provision 190 181 371 Payments (33 ) (195 ) (228 ) Accrual at June 30, 2015 $ 377 $ 43 $ 420 2014 Termination benefits Exit costs Total Accrual at December 31, 2013 $ 981 $ 45 $ 1,026 Provision 228 86 314 Payments (950 ) (106 ) (1,056 ) Accrued at March 31, 2014 $ 259 $ 25 $ 284 Provision 2 77 79 Payments (113 ) (97 ) (210 ) Accrual at June 30, 2014 $ 148 $ 5 $ 153 |
Schedule of Restructuring and Related Costs | Significant components of restructuring and other charges were as follows (in thousands): Total expected costs Expense incurred in Estimated future expense Six months ended June 30, 2015 Twelve months ended December 31, 2014 Twelve months ended December 31, 2013 2014 Activities Severance $ 1,347 $ 205 $ 1,066 $ — $ 76 Exit costs 1,111 161 950 — — $ 2,458 $ 366 $ 2,016 $ — $ 76 2013 Activities Severance $ 1,976 $ — $ 220 $ 1,756 $ — Exit costs 696 — 4 692 — $ 2,672 $ — $ 224 $ 2,448 $ — 2012 Activities Severance $ 4,533 $ — $ — $ 795 $ — Exit costs 1,633 78 267 823 54 Other charges 1,687 — — — — $ 7,853 $ 78 $ 267 $ 1,618 $ 54 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Borrowings under long-term debt arrangements, net of discounts, consisted of the following: June 30, December 31, (In thousands) 2015 2014 Asset-Based Revolving Credit Facility- Maturity date of September 5, 2018 $ 43,600 $ — Term B Loan, as Amended and Restated - Maturity date of March 5, 2020 292,173 293,637 Total Senior Credit Facility and Notes 335,773 293,637 Capital leases and other obligations 7,907 8,167 Less current maturities (3,489 ) (3,509 ) Long-term debt less current maturities $ 340,191 $ 298,295 |
Reclassifications out of accu37
Reclassifications out of accumulated other comprehensive income (loss) (Tables) | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||
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 six months ended June 30, 2015 (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, 2014 $ 1,590 $ (4,662 ) $ (1,955 ) $ (172 ) $ (4,184 ) $ (9,383 ) Other comprehensive income (loss) before reclassifications (7,993 ) (82 ) (1,698 ) (429 ) (105 ) (10,307 ) Amounts reclassified from accumulated other comprehensive income (loss) — 899 778 — 25 1,702 Balances at March 31, 2015 $ (6,403 ) $ (3,845 ) $ (2,875 ) $ (601 ) $ (4,264 ) $ (17,988 ) Other comprehensive income (loss) before reclassifications (910 ) (2,295 ) (1,096 ) 76 (110 ) (4,335 ) Amounts reclassified from accumulated other comprehensive income (loss) — 1,134 790 — 25 1,949 Balances at June 30, 2015 $ (7,313 ) $ (5,006 ) $ (3,181 ) $ (525 ) $ (4,349 ) $ (20,374 ) | The following table discloses the changes in each component of accumulated other comprehensive income, net of tax for the three and six months ended June 30, 2014 (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, 2013 $ 9,441 $ 2,753 $ (1,776 ) $ 886 $ 7,866 $ 19,170 Other comprehensive income (loss) before reclassifications 797 (886 ) (2,264 ) (281 ) (463 ) (3,097 ) Amounts reclassified from accumulated other comprehensive income (loss) — (636 ) 672 — 100 136 Balances at March 31, 2014 $ 10,238 $ 1,231 $ (3,368 ) $ 605 $ 7,503 $ 16,209 Other comprehensive income (loss) before reclassifications 5,644 3,298 1,101 (410 ) (241 ) 9,392 Amounts reclassified from accumulated other comprehensive income (loss) — (1,162 ) 755 — 102 (305 ) Balances at June 30, 2014 $ 15,882 $ 3,367 $ (1,512 ) $ 195 $ 7,364 $ 25,296 |
Disclosure of Reclassification Amount | Details about Accumulated Other Comprehensive Income (Loss) Components Three months ended June 30, Affected Line Item in the Statement Where Net Income is Presented 2015 2014 Gains (losses) on cash flow hedges: Foreign currency contracts $ (1,483 ) $ 1,512 Cost of goods sold Commodity contracts (1,296 ) (1,240 ) Cost of goods sold (2,779 ) 272 Total before tax 855 135 Tax benefit (expense) $ (1,924 ) $ 407 Net of tax Amortization of employee benefit plan costs: Prior service costs $ — $ — Selling, general and administrative expenses Net actuarial loss (29 ) (167 ) Selling, general and administrative expenses (29 ) (167 ) Total before tax 4 65 Tax benefit (expense) $ (25 ) $ (102 ) Net of tax Total reclassifications for the period $ (1,949 ) $ 305 Net of tax Details about Accumulated Other Comprehensive Income (Loss) Components Six months ended June 30, Affected Line Item in the Statement Where Net Income is Presented 2015 2014 Gains (losses) on cash flow hedges: Foreign currency contracts $ (2,684 ) $ 2,409 Cost of goods sold Commodity contracts (2,574 ) (2,339 ) Cost of goods sold (5,258 ) 70 Total before tax 1,657 301 Tax benefit (expense) $ (3,601 ) $ 371 Net of tax Amortization of employee benefit plan costs: Prior service costs $ — $ — Selling, general and administrative expenses Net actuarial loss (58 ) (331 ) Selling, general and administrative expenses (58 ) (331 ) Total before tax 8 129 Tax benefit (expense) $ (50 ) $ (202 ) Net of tax Total reclassifications for the period $ (3,651 ) $ 169 Net of tax |
Employee benefit plans (Tables)
Employee benefit plans (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | |
Schedule of Defined Benefit Plans Disclosures | The components of expense for our pension plans were as follows (in thousands): Three months ended June 30, Six months ended June 30, Components of expense 2015 2014 2015 2014 Service costs $ 325 $ 289 $ 650 $ 565 Interest costs 762 755 1,524 1,507 Expected return on plan assets (761 ) (768 ) (1,522 ) (1,534 ) Recognized net actuarial loss (gain) 53 (147 ) 106 (291 ) Net periodic pension cost $ 379 $ 129 $ 758 $ 247 |
Stock-based compensation (Table
Stock-based compensation (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Share-based Compensation [Abstract] | |
Allocated Share-based Compensation Expense | Noncash compensation expense related to all types of awards was recognized for the three and six months ended June 30, 2015 and 2014 as follows: Three months ended June 30, Six months ended June 30, (In thousands) 2015 2014 2015 2014 Stock-based compensation expense $ 1,009 $ 1,342 $ 2,325 $ 2,561 |
Business segment and geograph40
Business segment and geographical information (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
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 June 30, Six months ended June 30, (In thousands) 2015 2014 2015 2014 Net sales to external customers: United States $ 171,422 $ 196,509 $ 375,930 $ 401,127 Europe 18,107 22,788 37,870 45,863 Other Americas 9,300 11,857 18,109 22,737 Asia 73,168 71,756 143,499 139,188 Total net sales $ 271,997 $ 302,910 $ 575,408 $ 608,915 |
Acquisition (Tables)
Acquisition (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Acquisitions [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The initial purchase price allocation based on their fair values as of the acquisition date was as follows: Trade accounts receivable $ 8,011 Inventories 14,065 Prepaid expenses and other current assets 25 Property, plant and equipment 1,764 Goodwill 3,905 Intangible assets 3,810 Other noncurrent assets 22 Total assets acquired $ 31,602 Accounts payable $ 6,674 Other current liabilities and accrued expenses 2,928 Total liabilities acquired $ 9,602 Net assets acquired $ 22,000 |
Description of the business (De
Description of the business (Details) - USD ($) | 3 Months Ended | ||
Jun. 30, 2015 | Jul. 12, 2015 | Dec. 31, 2014 | |
Statement | |||
Shares held by majority stakeholder | 16,342,508 | ||
Related Party Transaction, Amounts of Transaction | $ 1,400,000 | ||
BorgWarnerAcquisition [Member] | Subsequent Event | |||
Statement | |||
Business Acquisition, Share Price | $ 29.50 | ||
BorgWarnerAcquisition [Member] | Maximum | Subsequent Event | |||
Statement | |||
Merger Termination Fee | $ 28,313,000 | ||
BorgWarnerAcquisition [Member] | Minimum | Subsequent Event | |||
Statement | |||
Merger Termination Fee | $ 14,156,000 |
Summary of significant accoun43
Summary of significant accounting policies (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Notes, Loans and Financing Receivable, Net, Current | $ 38,917 | $ 38,917 | $ 38,541 | ||
Weighted Average Number Diluted Shares Outstanding Adjustment | 78,525 | 83,670 | 124,502 | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 555,428 | 273,723 | 462,371 | 299,612 | |
Imaging [Member] | |||||
Weighted Average Number of Shares Outstanding, Basic and Diluted | 272,851 | ||||
Antidilutive Securities, Name [Domain] | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 65,390 |
Fair value measurements (Detail
Fair value measurements (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Interest Rate Swap | ||
Assets/(Liabilities) | ||
Derivative Assets (Liabilities), at Fair Value, Net | $ (4,114) | $ (2,848) |
Interest Rate Swap | Fair Value, Inputs, Level 2 | ||
Assets/(Liabilities) | ||
Derivative Assets (Liabilities), at Fair Value, Net | (4,114) | (2,848) |
Foreign Exchange Contract | ||
Assets/(Liabilities) | ||
Derivative Assets (Liabilities), at Fair Value, Net | (7,877) | (7,339) |
Foreign Exchange Contract | Fair Value, Inputs, Level 2 | ||
Assets/(Liabilities) | ||
Derivative Assets (Liabilities), at Fair Value, Net | (7,877) | (7,339) |
Commodity Contract | ||
Assets/(Liabilities) | ||
Derivative Assets (Liabilities), at Fair Value, Net | (5,317) | (4,088) |
Commodity Contract | Fair Value, Inputs, Level 2 | ||
Assets/(Liabilities) | ||
Derivative Assets (Liabilities), at Fair Value, Net | $ (5,317) | $ (4,088) |
Financial instruments (Details)
Financial instruments (Details) - Foreign Exchange Contract € in Thousands, £ in Thousands | 6 Months Ended | |||||
Jun. 30, 2015USD ($) | Jun. 30, 2015EUR (€) | Jun. 30, 2015GBP (£) | Dec. 31, 2014USD ($) | Dec. 31, 2014EUR (€) | Dec. 31, 2014GBP (£) | |
Derivative | ||||||
Maximum Term of Credit Risk Derivatives | 18 months | |||||
Accumulated unrealized gains/losses recorded in accumulated other comprehensive income, net of tax | $ (5,006,000) | $ (4,662,000) | ||||
Cash flow hedge gain/loss to be reclassified within twelve months | (5,002,000) | |||||
Korea (South), Won | ||||||
Derivative | ||||||
Notional amount of foreign currency derivatives | 66,720,000 | 82,907,000 | ||||
Mexico, Pesos | ||||||
Derivative | ||||||
Notional amount of foreign currency derivatives | 56,271,000 | 69,625,000 | ||||
Brazil, Brazil Real | ||||||
Derivative | ||||||
Notional amount of foreign currency derivatives | $ 2,526,000 | $ 12,318,000 | ||||
Hungary, Forint | ||||||
Derivative | ||||||
Notional amount of foreign currency derivatives | € | € 13,785 | € 12,646 | ||||
United Kingdom, Pounds | ||||||
Derivative | ||||||
Notional amount of foreign currency derivatives | £ | £ 0 | £ 300 |
Financial instruments Interest
Financial instruments Interest Rate Risk (Details) - Interest Rate Swap - USD ($) | 6 Months Ended | |
Jun. 30, 2015 | Dec. 31, 2014 | |
Not Designated as Hedging Instrument | ||
Derivative | ||
Derivative, Amount of Hedged Item | $ 72,000,000 | |
Derivative, lower variable interest rate range | 1.25% | |
Derivative, fixed interest rate | 4.045% | |
Notional Amount of Interest Rate Cash Flow Hedge Derivatives | $ 72,000,000 | |
Quarterly Notional Reduction, Derivatives | 187,500 | |
Designated as Hedging Instrument | ||
Derivative | ||
Derivative, Amount of Hedged Item | $ 72,000,000 | |
Derivative, lower variable interest rate range | 1.25% | |
Derivative, fixed interest rate | 2.75% | |
Notional Amount of Interest Rate Cash Flow Hedge Derivatives | $ 72,000,000 | |
Quarterly Notional Reduction, Derivatives | 187,500 | |
Accumulated unrealized gains/losses recorded in accumulated other comprehensive income, before tax | (863,000) | $ (282,000) |
Cash flow hedge gain/loss to be reclassified within twelve months | $ 0 |
Financial instruments Commodity
Financial instruments Commodity Price Risk (Details) - Commodity Contract $ in Thousands | 6 Months Ended | |
Jun. 30, 2015USD ($) | Dec. 31, 2014USD ($) | |
Derivative, number of instruments held | 34 | 37 |
Investment contract weight | 8,966 | 8,196 |
Maximum Term of Credit Risk Derivatives | 18 months | |
Accumulated unrealized gains/losses recorded in accumulated other comprehensive income, before tax | $ (5,259) | $ (4,092) |
Cash flow hedge gain/loss to be reclassified within twelve months | $ (4,875) |
Financial instruments Balance S
Financial instruments Balance Sheet Locations (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Designated as Hedging Instrument | ||
Derivatives, Fair Value | ||
Total derivative assets | $ 480 | $ 869 |
Total derivative liabilities | 14,537 | 12,578 |
Designated as Hedging Instrument | Commodity Contract | ||
Derivatives, Fair Value | ||
Prepaid expenses and other current assets | 0 | 0 |
Other noncurrent assets | 56 | 0 |
Other current liabilities and accrued expenses | 4,925 | 3,515 |
Other noncurrent liabilities | 448 | 573 |
Designated as Hedging Instrument | Foreign Exchange Contract | ||
Derivatives, Fair Value | ||
Prepaid expenses and other current assets | 424 | 869 |
Other noncurrent assets | 0 | 0 |
Other current liabilities and accrued expenses | 7,749 | 7,316 |
Other noncurrent liabilities | 552 | 892 |
Designated as Hedging Instrument | Interest Rate Swap | ||
Derivatives, Fair Value | ||
Other noncurrent assets | 0 | 0 |
Other noncurrent liabilities | 863 | 282 |
Not Designated as Hedging Instrument | ||
Derivatives, Fair Value | ||
Total derivative assets | 0 | 0 |
Total derivative liabilities | 3,251 | 2,566 |
Not Designated as Hedging Instrument | Interest Rate Swap | ||
Derivatives, Fair Value | ||
Other noncurrent assets | 0 | 0 |
Other noncurrent liabilities | $ 3,251 | $ 2,566 |
Financial instruments Income St
Financial instruments Income Statement Locations (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Designated as Hedging Instrument | ||||
Derivative Instruments, Gain (Loss) | ||||
Amount of gain (loss) recognized in OCI on derivatives (effective portion) | $ (4,598) | $ 5,021 | $ (7,192) | $ (127) |
Derivative Instruments, Gain (Loss) Recognized in Income, Ineffective Portion and Amount Excluded from Effectiveness Testing, Net | (23) | 22 | (42) | (15) |
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | (2,756) | 250 | (5,216) | 85 |
Designated as Hedging Instrument | Commodity Contract | ||||
Derivative Instruments, Gain (Loss) | ||||
Amount of gain (loss) recognized in OCI on derivatives (effective portion) | (1,776) | 1,784 | (3,699) | (1,777) |
Derivative Instruments, Gain (Loss) Recognized in Income, Ineffective Portion and Amount Excluded from Effectiveness Testing, Net | (23) | 22 | (42) | (15) |
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | (1,273) | (1,262) | (2,532) | (2,324) |
Designated as Hedging Instrument | Foreign Exchange Contract | ||||
Derivative Instruments, Gain (Loss) | ||||
Amount of gain (loss) recognized in OCI on derivatives (effective portion) | (2,946) | 3,909 | (2,913) | 2,784 |
Derivative Instruments, Gain (Loss) Recognized in Income, Ineffective Portion and Amount Excluded from Effectiveness Testing, Net | 0 | 0 | 0 | 0 |
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | (1,483) | 1,512 | (2,684) | 2,409 |
Designated as Hedging Instrument | Interest Rate Swap | ||||
Derivative Instruments, Gain (Loss) | ||||
Amount of gain (loss) recognized in OCI on derivatives (effective portion) | 124 | (672) | (580) | (1,134) |
Derivative Instruments, Gain (Loss) Recognized in Income, Ineffective Portion and Amount Excluded from Effectiveness Testing, Net | 0 | 0 | 0 | 0 |
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | 0 | 0 | 0 | 0 |
Not Designated as Hedging Instrument | Interest Rate Swap | ||||
Derivative Instruments, Gain (Loss) | ||||
Amount of gain (loss) recognized in income on derivatives | $ 105 | $ (656) | $ (685) | $ (1,333) |
Financial instruments Factoring
Financial instruments Factoring Accounts Receivable (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Financial Instruments [Abstract] | |||||
Gain (Loss) on Sale of Accounts Receivable | $ (673) | $ (1,292) | $ (1,436) | $ (2,546) | |
Accounts receivable factored, gross | $ 175,055 | $ 175,055 | $ 229,696 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Inventory [Abstract] | ||
Raw materials | $ 58,041 | $ 46,049 |
Core inventory | 36,845 | 36,034 |
Work-in-process | 9,363 | 7,827 |
Finished goods | 87,528 | 74,233 |
Inventories | $ 191,777 | $ 164,143 |
Property, plant and equipment (
Property, plant and equipment (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation and amortization expense of property, plant, and equipment | $ 12,721,000 | $ 13,384,000 |
Goodwill and other intangible53
Goodwill and other intangible assets (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Sep. 30, 2014 | Jun. 30, 2015 | Dec. 31, 2014 | |
Intangible Assets and Goodwill | ||||
Intangible Assets, Gross (Excluding Goodwill) | $ 407,544,000 | $ 407,544,000 | $ 415,065,000 | |
Intangible Assets, Accumulated Amortization | 127,667,000 | 127,667,000 | 117,042,000 | |
Intangible Assets, Net (Excluding Goodwill) | 279,877,000 | 279,877,000 | 298,023,000 | |
Goodwill, Gross | 263,491,000 | 263,491,000 | 259,586,000 | |
Goodwill, Amortization | 0 | 0 | 0 | |
Goodwill, Net | 263,491,000 | $ 263,491,000 | 259,586,000 | |
Intellectual Property | ||||
Intangible Assets and Goodwill | ||||
Finite-lived Intangible Assets Acquired | $ 13,930,000 | |||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 15 years | |||
Finite-Lived Intangible Assets, Period Increase (Decrease) | 795,000 | |||
Customer Contracts | ||||
Intangible Assets and Goodwill | ||||
Finite-lived Intangible Assets Acquired | $ 726,000 | |||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 4 years 3 months | |||
Maval Acquisition [Member] | ||||
Intangible Assets and Goodwill | ||||
Business Acquisition, Goodwill, Expected Tax Deductible Amount | 3,905,000 | $ 3,905,000 | ||
Maval Acquisition [Member] | Customer Relationships | ||||
Intangible Assets and Goodwill | ||||
Finite-lived Intangible Assets Acquired | $ 3,310,000 | |||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 10 years | |||
Maval Acquisition [Member] | Trade Names | ||||
Intangible Assets and Goodwill | ||||
Finite-lived Intangible Assets Acquired | $ 500,000 | |||
Finite-Lived Intangible Asset, Useful Life | 5 years | |||
Definite-Life Intangible | ||||
Intangible Assets and Goodwill | ||||
Finite-Lived Intangible Assets, Gross | $ 321,334,000 | 321,334,000 | 328,855,000 | |
Finite-Lived Intangible Assets, Accumulated Amortization | 127,667,000 | 127,667,000 | 117,042,000 | |
Finite-Lived Intangible Assets, Net | 193,667,000 | 193,667,000 | 211,813,000 | |
Definite-Life Intangible | Intellectual Property | ||||
Intangible Assets and Goodwill | ||||
Finite-Lived Intangible Assets, Gross | 28,628,000 | 28,628,000 | 27,833,000 | |
Finite-Lived Intangible Assets, Accumulated Amortization | 3,905,000 | 3,905,000 | 2,980,000 | |
Finite-Lived Intangible Assets, Net | 24,723,000 | 24,723,000 | 24,853,000 | |
Definite-Life Intangible | Customer Relationships | ||||
Intangible Assets and Goodwill | ||||
Finite-Lived Intangible Assets, Gross | 210,270,000 | 210,270,000 | 206,960,000 | |
Finite-Lived Intangible Assets, Accumulated Amortization | 61,508,000 | 61,508,000 | 50,558,000 | |
Finite-Lived Intangible Assets, Net | 148,762,000 | 148,762,000 | 156,402,000 | |
Definite-Life Intangible | Customer Contracts | ||||
Intangible Assets and Goodwill | ||||
Finite-Lived Intangible Assets, Gross | 81,516,000 | 81,516,000 | 93,642,000 | |
Finite-Lived Intangible Assets, Accumulated Amortization | 61,901,000 | 61,901,000 | 63,285,000 | |
Finite-Lived Intangible Assets, Net | 19,615,000 | 19,615,000 | 30,357,000 | |
Definite-Life Intangible | Trade Names | ||||
Intangible Assets and Goodwill | ||||
Finite-Lived Intangible Assets, Gross | 500,000 | 500,000 | 0 | |
Finite-Lived Intangible Assets, Accumulated Amortization | 33,000 | 33,000 | 0 | |
Finite-Lived Intangible Assets, Net | 467,000 | 467,000 | 0 | |
Definite-Life Intangible | Lease Agreements | ||||
Intangible Assets and Goodwill | ||||
Finite-Lived Intangible Assets, Gross | 420,000 | 420,000 | 420,000 | |
Finite-Lived Intangible Assets, Accumulated Amortization | 320,000 | 320,000 | 219,000 | |
Finite-Lived Intangible Assets, Net | 100,000 | 100,000 | 201,000 | |
Indefinite-Life Intagible [Member] | Trade Names | ||||
Intangible Assets and Goodwill | ||||
Indefinite-Lived Intangible Assets, Gross | 86,210,000 | 86,210,000 | 86,210,000 | |
Indefinite-Lived Intangible Assets, Accumulated Amortization | 0 | 0 | 0 | |
Indefinite-Lived Intangible Assets, Net | $ 86,210,000 | $ 86,210,000 | $ 86,210,000 |
Other noncurrent assets (Detail
Other noncurrent assets (Details) - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 |
Other noncurrent assets [Abstract] | ||
Noncurrent deferred tax assets | $ 12,159,000 | $ 12,028,000 |
Noncurrent core return rights | $ 21,453,000 | $ 38,940,000 |
Other current liabilities and55
Other current liabilities and accrued expenses Other Current Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Other current liabilities and accrued expenses [Abstract] | ||
Accrued warranty | $ 25,805 | $ 22,583 |
Accrued wages and benefits | 16,486 | 18,784 |
Current portion of customer obligations | 1,576 | 2,234 |
Rebates, stocklifts, discounts and returns | 16,092 | 20,282 |
Current deferred revenue | 796 | 865 |
Other | 52,852 | 63,761 |
Other current liabilities and accrued expenses | $ 113,607 | $ 128,509 |
Other current liabilities and56
Other current liabilities and accrued expenses Warranty (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Other current liabilities and accrued expenses [Abstract] | ||||
Balance at beginning of period | $ 27,711 | $ 32,489 | $ 26,012 | $ 30,781 |
Provision for warranty | 11,328 | 9,047 | 21,892 | 21,218 |
Payments and charges against the accrual | (9,748) | (11,709) | (18,973) | (23,535) |
Increased warranty accruals due to business acquisitions (Note 20) | 0 | 0 | 360 | 1,363 |
Balance at end of period | $ 29,291 | $ 29,827 | $ 29,291 | $ 29,827 |
Other noncurrent liabilities (D
Other noncurrent liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Other Liabilities, Noncurrent [Abstract] | ||
Noncurrent deferred revenue | $ 3,590 | $ 3,967 |
Other | 23,402 | 22,516 |
Other noncurrent liabilities | $ 26,992 | $ 26,483 |
Restructuring and other charg58
Restructuring and other charges Restructing Detail (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Restructuring and Related Activities [Abstract] | ||||
Restructuring and other charges | $ 371 | $ 79 | $ 444 | $ 393 |
Severance costs | 205 | 230 | ||
Business exit costs | $ 239 | $ 163 |
Restructuring and other charg59
Restructuring and other charges Restructuring Rollforward Table (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2015 | Mar. 31, 2015 | Jun. 30, 2014 | Mar. 31, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Restructuring Cost and Reserve | |||||||
Restructuring and other charges | $ 371 | $ 79 | $ 444 | $ 393 | |||
Payments for restructuring | (355) | (1,266) | |||||
Employee Severance | |||||||
Restructuring Cost and Reserve | |||||||
Restructuring reserve, beginning of period | 220 | $ 259 | 259 | $ 981 | 259 | 981 | $ 981 |
Restructuring and other charges | 190 | 15 | 2 | 228 | |||
Payments for restructuring | (33) | (54) | (113) | (950) | |||
Restructuring reserve, end of period | 377 | 220 | 148 | 259 | 377 | 148 | 259 |
Business Exit Costs | |||||||
Restructuring Cost and Reserve | |||||||
Restructuring reserve, beginning of period | 57 | 72 | 25 | 45 | 72 | 45 | 45 |
Restructuring and other charges | 181 | 58 | 77 | 86 | |||
Payments for restructuring | (195) | (73) | (97) | (106) | |||
Restructuring reserve, end of period | 43 | 57 | 5 | 25 | 43 | 5 | 72 |
Total Restructuring | |||||||
Restructuring Cost and Reserve | |||||||
Restructuring reserve, beginning of period | 277 | 331 | 284 | 1,026 | 331 | 1,026 | 1,026 |
Restructuring and other charges | 371 | 73 | 79 | 314 | |||
Payments for restructuring | (228) | (127) | (210) | (1,056) | |||
Restructuring reserve, end of period | $ 420 | $ 277 | $ 153 | $ 284 | $ 420 | $ 153 | $ 331 |
Restructuring and other charg60
Restructuring and other charges Significant Components (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | |
Restructuring Cost and Reserve | ||||||
Severance costs | $ 205 | $ 230 | ||||
Business exit costs | 239 | 163 | ||||
Restructuring and other charges | $ 371 | $ 79 | 444 | $ 393 | ||
Total Expected Costs | 2014 | ||||||
Restructuring Cost and Reserve | ||||||
Severance costs | 1,347 | |||||
Business exit costs | 1,111 | |||||
Restructuring and other charges | 2,458 | |||||
Total Expected Costs | 2013 | ||||||
Restructuring Cost and Reserve | ||||||
Severance costs | 1,976 | |||||
Business exit costs | 696 | |||||
Restructuring and other charges | 2,672 | |||||
Total Expected Costs | 2012 | ||||||
Restructuring Cost and Reserve | ||||||
Severance costs | 4,533 | |||||
Business exit costs | 1,633 | |||||
Other restructuring costs | 1,687 | |||||
Restructuring and other charges | 7,853 | |||||
Restructuring Charges | 2014 | ||||||
Restructuring Cost and Reserve | ||||||
Severance costs | 205 | $ 1,066 | $ 0 | |||
Business exit costs | 161 | 950 | 0 | |||
Restructuring and other charges | 366 | 2,016 | 0 | |||
Restructuring Charges | 2013 | ||||||
Restructuring Cost and Reserve | ||||||
Severance costs | 0 | 220 | 1,756 | |||
Business exit costs | 0 | 4 | 692 | |||
Restructuring and other charges | 0 | 224 | 2,448 | |||
Restructuring Charges | 2012 | ||||||
Restructuring Cost and Reserve | ||||||
Severance costs | 0 | 0 | 795 | |||
Business exit costs | 78 | 267 | 823 | |||
Other restructuring costs | 0 | 0 | 0 | |||
Restructuring and other charges | 78 | $ 267 | $ 1,618 | |||
Estimated Future Expense | 2014 | ||||||
Restructuring Cost and Reserve | ||||||
Severance costs | 76 | |||||
Business exit costs | 0 | |||||
Restructuring and other charges | 76 | |||||
Estimated Future Expense | 2013 | ||||||
Restructuring Cost and Reserve | ||||||
Severance costs | 0 | |||||
Business exit costs | 0 | |||||
Restructuring and other charges | 0 | |||||
Estimated Future Expense | 2012 | ||||||
Restructuring Cost and Reserve | ||||||
Severance costs | 0 | |||||
Business exit costs | 54 | |||||
Other restructuring costs | 0 | |||||
Restructuring and other charges | $ 54 |
Debt (Details)
Debt (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Long-term Debt | $ 335,773 | $ 293,637 |
Capital leases | 7,907 | 8,167 |
Less current maturities | (3,489) | (3,509) |
Long-term Debt, Excluding Current Maturities | 340,191 | 298,295 |
Asset-Based Revolving Credit Facility, First Amendment | ||
Long-term Line of Credit | 43,600 | 0 |
Amended and Restated Term B Loan Facility | ||
Term B Loan, as Amended and Restated - Maturity date of March 5, 2020 | $ 292,173 | $ 293,637 |
Debt First Amendment Asset-Base
Debt First Amendment Asset-Based Revolving Credit Facility (Details) - Jun. 30, 2015 - Asset-Based Revolving Credit Facility, First Amendment - USD ($) | Total |
Debt Instrument | |
Line of credit facility, maximum borrowing capacity | $ 95,000,000 |
Line of credit facility, additional borrowing capacity | 20,000,000 |
Line of credit facility, fair value of amount outstanding | 43,600,000 |
Letters of credit outstanding, amount | 2,310,000 |
Line of credit facility, current borrowing capacity | $ 46,146,000 |
Line of credit facility, commitment fee percentage | 0.375% |
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 ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Dec. 31, 2014 | |
Amended and Restated Term B Loan Facility | ||
Debt Instrument | ||
Debt instrument, face amount | $ 300,000 | |
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% | |
Long-term debt, fair value | $ 294,512 | $ 290,693 |
Fair value, option, aggregate differences, long-term debt instruments | 2,339 | $ (2,944) |
Covenant agreement, minimum payment missed to fall into default | 5,000 | |
Term B Loan Facility | ||
Debt Instrument | ||
Debt instrument, face amount | $ 286,978 |
Debt Short Term Debt (Details)
Debt Short Term Debt (Details) - Jun. 30, 2015 $ in Thousands | USD ($) |
South Korea | |
Short-term Debt | |
Short-term debt, number of lenders | 3 |
Line of credit facility, maximum borrowing capacity | $ 11,565 |
Line of credit facility, amount outstanding | $ 1,779 |
Short-term debt, weighted average interest rate | 2.61% |
Hungary | |
Short-term Debt | |
Short-term debt, number of lenders | 1 |
Line of credit facility, maximum borrowing capacity | $ 1,038 |
Line of credit facility, amount outstanding | $ 1,014 |
Short-term debt, weighted average interest rate | 2.086% |
CHINA | |
Short-term Debt | |
Short-term debt, number of lenders | 1 |
Line of credit facility, maximum borrowing capacity | $ 10,000 |
Line of credit facility, amount outstanding | $ 3,000 |
Short-term debt, weighted average interest rate | 2.04% |
Debt Capital Lease (Details)
Debt Capital Lease (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Dec. 31, 2014 | |
Debt Disclosure [Abstract] | ||
Capital lease, capitalization rate lower bound | 4.00% | |
Capital lease, capitalization rate higher bound | 15.10% | |
Capital leases, balance sheet, assets by major class, net | $ 2,593 | $ 2,810 |
Debt Other Debt Obligations (De
Debt Other Debt Obligations (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2015 | Dec. 31, 2014 | |
Debt Instrument [Line Items] | ||
FailedSalesLeasebackAssetNetBookValue | $ 11,207,000 | $ 11,855,000 |
FailedSalesLeasebackFinancingObligation | $ 5,800,000 | |
Other Debt Obligations [Member] | ||
Debt Instrument [Line Items] | ||
Debt, Weighted Average Interest Rate | 6.50% |
Stockholders' equity (Details)
Stockholders' equity (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||||
Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Total shares authorized | 280,000,000 | ||||||
Common Stock, shares authorized | 240,000,000 | ||||||
Common Stock, par value | $ 0.0001 | $ 0.0001 | $ 0.0001 | ||||
Preferred Stock, shares authorized | 40,000,000 | ||||||
Preferred Stock, par or stated value per share | $ 0.0001 | ||||||
Common Stock, shares outstanding | 31,811,724 | 31,811,724 | 32,201,086 | ||||
Preferred Stock, shares outstanding | 0 | 0 | |||||
Common Stock, Voting Rights | 1 | ||||||
Shares Paid for Tax Withholding for Share Based Compensation | 47,772 | 114,291 | |||||
Payments Related to Tax Withholding for Share-based Compensation | $ 1,130,000 | $ 2,505,000 | |||||
Payments for Repurchase of Common Stock | $ 11,062,000 | $ 2,505,000 | |||||
Stock Issued During Period, Shares, Restricted Stock Award, Forfeited | 117,457 | 74,892 | |||||
Dividends declared per common share | $ 0.11 | $ 0.10 | $ 0.10 | $ 0.21 | $ 0.20 | ||
Payments of Ordinary Dividends, Common Stock | $ 6,800,000 | $ 6,548,000 | |||||
Dividends Payable | $ 114,000 | 114,000 | |||||
Subsequent Event | |||||||
Dividends declared per common share | $ 0.11 | ||||||
Feb. 2015 Share Repurchase Program [Member] | |||||||
Payments for Repurchase of Common Stock | 9,932,000 | ||||||
Stock Repurchase Program, Authorized Amount | $ 100,000,000 | $ 100,000,000 | |||||
Stock Repurchase Program Expiration Date | Feb. 28, 2018 | ||||||
Treasury Stock, shares acquired | 447,725 | ||||||
Treasury Stock Acquired, Average Cost Per Share | $ 22.18 | ||||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 90,068,000 | $ 90,068,000 |
Reclassifications out of accu68
Reclassifications out of accumulated other comprehensive income (loss) Changes in Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Jun. 30, 2015 | Mar. 31, 2015 | Jun. 30, 2014 | Mar. 31, 2014 | |
Beginning Balance | $ (17,988) | $ (9,383) | $ 16,209 | $ 19,170 |
Other comprehensive income (loss) before reclassifications | (4,335) | (10,307) | 9,392 | (3,097) |
Amounts reclassified from accumulated other comprehensive income (loss) | 1,949 | 1,702 | (305) | 136 |
Ending Balance | (20,374) | (17,988) | 25,296 | 16,209 |
Accumulated Translation Adjustment | ||||
Beginning Balance | (6,403) | 1,590 | 10,238 | 9,441 |
Other comprehensive income (loss) before reclassifications | (910) | (7,993) | 5,644 | 797 |
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Ending Balance | (7,313) | (6,403) | 15,882 | 10,238 |
Accumulated Defined Benefit Plans Adjustment | ||||
Beginning Balance | (4,264) | (4,184) | 7,503 | 7,866 |
Other comprehensive income (loss) before reclassifications | (110) | (105) | (241) | (463) |
Amounts reclassified from accumulated other comprehensive income (loss) | 25 | 25 | 102 | 100 |
Ending Balance | (4,349) | (4,264) | 7,364 | 7,503 |
Foreign Exchange Contract | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges | ||||
Beginning Balance | (3,845) | (4,662) | 1,231 | 2,753 |
Other comprehensive income (loss) before reclassifications | (2,295) | (82) | 3,298 | (886) |
Amounts reclassified from accumulated other comprehensive income (loss) | 1,134 | 899 | (1,162) | (636) |
Ending Balance | (5,006) | (3,845) | 3,367 | 1,231 |
Commodity Contract | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges | ||||
Beginning Balance | (2,875) | (1,955) | (3,368) | (1,776) |
Other comprehensive income (loss) before reclassifications | (1,096) | (1,698) | 1,101 | (2,264) |
Amounts reclassified from accumulated other comprehensive income (loss) | 790 | 778 | 755 | 672 |
Ending Balance | (3,181) | (2,875) | (1,512) | (3,368) |
Interest Rate Swap | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges | ||||
Beginning Balance | (601) | (172) | 605 | 886 |
Other comprehensive income (loss) before reclassifications | 76 | (429) | (410) | (281) |
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Ending Balance | $ (525) | $ (601) | $ 195 | $ 605 |
Reclassifications out of accu69
Reclassifications out of accumulated other comprehensive income (loss) Reclassifications Out of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2015 | Mar. 31, 2015 | Jun. 30, 2014 | Mar. 31, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | |
Accumulated other comprehensive loss | $ (20,374) | $ (17,988) | $ 25,296 | $ 16,209 | $ (20,374) | $ 25,296 | $ (9,383) | $ 19,170 |
Other comprehensive income (loss) before reclassifications | (4,335) | (10,307) | 9,392 | (3,097) | ||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | (1,949) | (1,702) | 305 | (136) | ||||
Cost of goods sold | (237,151) | (252,913) | (478,560) | (512,567) | ||||
Total before tax | (554) | 8,691 | 22,944 | 16,543 | ||||
Tax (expense) or benefit | (396) | (3,661) | (7,324) | (6,569) | ||||
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges | Foreign Exchange Contract | ||||||||
Accumulated other comprehensive loss | (5,006) | (3,845) | 3,367 | 1,231 | (5,006) | 3,367 | (4,662) | 2,753 |
Other comprehensive income (loss) before reclassifications | (2,295) | (82) | 3,298 | (886) | ||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | (1,134) | (899) | 1,162 | 636 | ||||
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges | Commodity Contract | ||||||||
Accumulated other comprehensive loss | (3,181) | (2,875) | (1,512) | (3,368) | (3,181) | (1,512) | (1,955) | (1,776) |
Other comprehensive income (loss) before reclassifications | (1,096) | (1,698) | 1,101 | (2,264) | ||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | (790) | (778) | (755) | (672) | ||||
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges | ERROR in label resolution. | ||||||||
Accumulated other comprehensive loss | (525) | (601) | 195 | 605 | (525) | 195 | (172) | 886 |
Other comprehensive income (loss) before reclassifications | 76 | (429) | (410) | (281) | ||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 0 | 0 | 0 | 0 | ||||
Accumulated Defined Benefit Plans Adjustment | ||||||||
Accumulated other comprehensive loss | (4,349) | (4,264) | 7,364 | 7,503 | (4,349) | 7,364 | (4,184) | 7,866 |
Other comprehensive income (loss) before reclassifications | (110) | (105) | (241) | (463) | ||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | (25) | (25) | (102) | (100) | ||||
Accumulated Translation Adjustment | ||||||||
Accumulated other comprehensive loss | (7,313) | (6,403) | 15,882 | 10,238 | (7,313) | 15,882 | $ 1,590 | $ 9,441 |
Other comprehensive income (loss) before reclassifications | (910) | (7,993) | 5,644 | 797 | ||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 0 | $ 0 | 0 | $ 0 | ||||
Reclassification out of Accumulated Other Comprehensive Income | ||||||||
Net Income (Loss) Available to Common Stockholders, Basic | (1,949) | 305 | (3,651) | 169 | ||||
Reclassification out of Accumulated Other Comprehensive Income | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges | ||||||||
Total before tax | (2,779) | 272 | (5,258) | 70 | ||||
Tax (expense) or benefit | 855 | 135 | 1,657 | 301 | ||||
Net Income (Loss) Available to Common Stockholders, Basic | (1,924) | 407 | (3,601) | 371 | ||||
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 | (1,483) | 1,512 | (2,684) | 2,409 | ||||
Reclassification out of Accumulated Other Comprehensive Income | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges | Commodity Contract | ||||||||
Cost of goods sold | (1,296) | (1,240) | (2,574) | (2,339) | ||||
Reclassification out of Accumulated Other Comprehensive Income | Accumulated Defined Benefit Plans Adjustment | ||||||||
Prior-service costs | 0 | 0 | 0 | 0 | ||||
Actuarial losses | (29) | (167) | (58) | (331) | ||||
Total before tax | (29) | (167) | (58) | (331) | ||||
Tax (expense) or benefit | 4 | 65 | 8 | 129 | ||||
Net Income (Loss) Available to Common Stockholders, Basic | $ (25) | $ (102) | $ (50) | $ (202) |
Income taxes (Details)
Income taxes (Details) - Korea Advance Pricing Agreement [Member] | 6 Months Ended |
Jun. 30, 2015USD ($) | |
Income Tax Examination [Line Items] | |
Advance Pricing Agreement Potential Tax Expense Upon Final Agreement Between Tax Authorities | $ 20,000,000 |
Advance Pricing Agreement Potential Cash Outflow Upon FInal Agreement Between Tax Authorities | $ 44,000,000 |
Employee benefit plans (Details
Employee benefit plans (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Defined Benefit Plan Disclosure | ||||
Current year contributions | $ 1,695,000 | $ 1,809,000 | ||
Pension benefits: | ||||
Defined Benefit Plan Disclosure | ||||
Service costs | $ 325,000 | $ 289,000 | 650,000 | 565,000 |
Interest costs | 762,000 | 755,000 | 1,524,000 | 1,507,000 |
Expected return on plan assets | (761,000) | (768,000) | (1,522,000) | (1,534,000) |
Recognized net actuarial loss | 53,000 | (147,000) | 106,000 | (291,000) |
Net periodic cost (benefit) | $ 379,000 | $ 129,000 | 758,000 | $ 247,000 |
United States | ||||
Defined Benefit Plan Disclosure | ||||
Total expected current year contributions | 2,041,000 | |||
International | ||||
Defined Benefit Plan Disclosure | ||||
Total expected current year contributions | $ 2,004,000 |
Stock-based compensation (Detai
Stock-based compensation (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2015 | Mar. 31, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Feb. 14, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award | ||||||
Allocated share-based compensation expense | $ 1,009 | $ 1,342 | $ 2,325 | $ 2,561 | ||
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 | 2,790,000 | 2,790,000 | ||||
Share-based compensation arrangement by share-based payment award, options, grants in period, weighted average grant date fair value | $ 4.78 | |||||
Share-based compensation arrangement by share-based payment award, fair value assumptions, risk free interest rate | 1.41% | |||||
Share-based compensation arrangement by share-based payment award, fair value assumptions, expected dividend rate | 1.78% | |||||
Share-based compensation arrangement by share-based payment award, fair value assumptions, expected volatility rate | 27.94% | |||||
Share-based compensation arrangement by share-based payment award, fair value assumptions, expected term | 4 years 6 months | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 7,036 | 2,397 | ||||
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 | 30,558 | 150,280 | ||||
Share-based compensation arrangement by share-based payment award, equity instruments other than options, grants in period, weighted average grant date fair value | $ 21.76 | $ 23.01 | ||||
Share-based compensation arrangement by share-based payment award, options, grants in period, gross | 64,980 | 305,753 | ||||
Share-based compensation arrangement by share-based payment award, options, outstanding, weighted average exercise price | $ 21.76 | $ 23.01 | $ 21.76 | |||
Award allocation percentage, time based, shares | 50.00% | 50.00% | ||||
Award allocation percentage, performance based, shares | 50.00% | 50.00% | ||||
Annual vesting percentage, time based, shares | 33.00% | 33.00% | ||||
Annual vesting percentage, performance based, shares | 33.00% | 33.00% | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 7 years | 7 years | ||||
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 | 22,815 | |||||
Share-based compensation arrangement by share-based payment award, equity instruments other than options, grants in period, weighted average grant date fair value | $ 23.01 | |||||
Share-based compensation arrangement by share-based payment award, options, grants in period, gross | 46,418 | |||||
Share-based compensation arrangement by share-based payment award, options, outstanding, weighted average exercise price | $ 23.01 | $ 23.01 | ||||
Annual vesting percentage, years one and two, shares | 50.00% | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 7 years | |||||
Retention Restricted Stock Grant [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||
Share-based compensation arrangement by share-based payment award, equity instruments other than options, grants in period, weighted average grant date fair value | $ 22.62 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Granted | 15,000 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | |||||
Annual vesting percentage, time based, shares | 100.00% | |||||
Restricted Stock [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||
Share-based compensation arrangement by share-based payment award, equity instruments other than options, grants in period, weighted average grant date fair value | $ 23.01 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Granted | 22,816 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 1 year | |||||
Annual vesting percentage, time based, shares | 100.00% |
Business segment and geograph73
Business segment and geographical information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Segment Reporting Information | ||||
Net sales | $ 271,997 | $ 302,910 | $ 575,408 | $ 608,915 |
United States | ||||
Segment Reporting Information | ||||
Net sales | 171,422 | 196,509 | 375,930 | 401,127 |
Europe | ||||
Segment Reporting Information | ||||
Net sales | 18,107 | 22,788 | 37,870 | 45,863 |
Other Americas | ||||
Segment Reporting Information | ||||
Net sales | 9,300 | 11,857 | 18,109 | 22,737 |
Asia Pacific | ||||
Segment Reporting Information | ||||
Net sales | $ 73,168 | $ 71,756 | $ 143,499 | $ 139,188 |
Other commitments and conting74
Other commitments and contingencies (Details) - USD ($) | 3 Months Ended | 6 Months Ended |
Sep. 30, 2014 | Jun. 30, 2015 | |
Lorva | ||
Loss Contingencies | ||
Loss Contingency, Damages Sought | $ 17,380,000 | |
Loss Contingency, Estimate of Possible Loss | 121,000 | |
Tecnomatic | ||
Loss Contingencies | ||
Loss Contingency, Damages Sought | 110,000,000 | |
Remy, Inc. vs. Tecnomatic S.p.A. [Member] | ||
Loss Contingencies | ||
Payments for Legal Settlements | $ 16,000,000 | $ 16,000,000 |
Intellectual Property | ||
Loss Contingencies | ||
Finite-lived Intangible Assets Acquired | $ 13,930,000 |
Acquisition (Details)
Acquisition (Details) - Jun. 30, 2015 - Maval Acquisition [Member] - USD ($) | Total | Total |
Business Acquisition | ||
Business Combination, Consideration Transferred | $ 22,000,000 | |
Payments to Acquire Businesses, Gross | 18,700,000 | |
Escrow Deposit | $ 3,300,000 | 3,300,000 |
Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Receivables | 8,011,000 | 8,011,000 |
Recognized Identifiable Assets Acquired and Liabilities Assumed, Inventory | 14,065,000 | 14,065,000 |
Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Prepaid Expense and Other Assets | 25,000 | 25,000 |
Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | 1,764,000 | 1,764,000 |
Recognized Identifiable Assets Acquired and Liabilities Assumed, Goodwill | 3,905,000 | 3,905,000 |
Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | 3,810,000 | 3,810,000 |
Recognized Identifiable Assets Acquired and Liabilities Assumed, Other Noncurrent Assets | 22,000 | 22,000 |
Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets | 31,602,000 | 31,602,000 |
Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Accounts Payable | 6,674,000 | 6,674,000 |
Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Other | 2,928,000 | 2,928,000 |
Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities | 9,602,000 | 9,602,000 |
Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net | 22,000,000 | 22,000,000 |
Finished Goods Inventory Step-Up | 587,000 | |
Amortization of Intangible Assets | $ 108,000 | $ 144,000 |