Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Feb. 19, 2021 | Jun. 30, 2020 | |
Document and Entity Information | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | Dec. 31, 2020 | ||
Entity File Number | 1-16263 | ||
Entity Registrant Name | MARINE PRODUCTS CORPORATION | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 58-2572419 | ||
Entity Address, Address Line One | 2801 BUFORD HIGHWAY NE, SUITEĀ 300 | ||
Entity Address, City or Town | ATLANTA | ||
Entity Address, State or Province | GA | ||
Entity Address, Postal Zip Code | 30329 | ||
City Area Code | 404 | ||
Local Phone Number | 321-7910 | ||
Title of 12(b) Security | COMMON STOCK | ||
Trading Symbol | MPX | ||
Security Exchange Name | NYSE | ||
Entity Well-Known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 98,382,173 | ||
Entity Common Stock, Shares Outstanding | 33,992,885 | ||
Entity Central Index Key | 0001129155 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
ICFR Auditor Attestation Flag | true |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
ASSETS | ||
Cash and cash equivalents | $ 31,573 | $ 19,804 |
Accounts receivable, net of allowance for doubtful accounts of $20 in 2020 and 2019 | 4,706 | 6,607 |
Inventories | 42,310 | 41,553 |
Income taxes receivable | 907 | |
Prepaid expenses and other current assets | 1,947 | 2,056 |
Current assets | 80,536 | 70,927 |
Property, plant and equipment, net | 14,938 | 14,796 |
Goodwill | 3,308 | 3,308 |
Other intangibles, net | 465 | 465 |
Deferred income taxes | 4,075 | 3,990 |
Other assets | 16,100 | 11,278 |
Total assets | 119,422 | 104,764 |
LIABILITIES AND STOCKHOLDERS' EQUITY | ||
Accounts payable | 6,079 | 3,886 |
Accrued expenses and other liabilities | 15,583 | 13,155 |
Current liabilities | 21,662 | 17,041 |
Pension liabilities | 12,524 | 9,980 |
Other long-term liabilities | 717 | 531 |
Total liabilities | 34,903 | 27,552 |
Commitments and contingencies (Note 10) | ||
Preferred stock, $0.10 par value, 1,000,000 shares authorized, none issued | 0 | 0 |
Common stock, $0.10 par value, 74,000,000 shares authorized, issued and outstanding ? 33,868,624 shares in 2020, 33,869,817 shares in 2019 | 3,387 | 3,387 |
Capital in excess of par value | 0 | 0 |
Retained earnings | 83,079 | 76,573 |
Accumulated other comprehensive loss | (1,947) | (2,748) |
Total stockholders' equity | 84,519 | 77,212 |
Total liabilities and stockholders' equity | $ 119,422 | $ 104,764 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2020 | Dec. 31, 2019 |
CONSOLIDATED BALANCE SHEETS | ||
Preferred stock, par value (in dollar per share) | $ 0.10 | $ 0.10 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value (in dollar per share) | $ 0.10 | $ 0.10 |
Common stock, shares authorized | 74,000,000 | 74,000,000 |
Common stock, shares issued | 33,868,624 | 33,869,817 |
Common Stock, Shares, Outstanding | 33,868,624 | 33,869,817 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
CONSOLIDATED STATEMENTS OF OPERATIONS | |||
Net sales | $ 239,825 | $ 292,136 | $ 298,616 |
Cost of goods sold | 186,220 | 226,742 | 232,293 |
Gross profit | 53,605 | 65,394 | 66,323 |
Selling, general and administrative expenses | 29,244 | 31,259 | 30,936 |
Operating income | 24,361 | 34,135 | 35,387 |
Interest income | 95 | 323 | 268 |
Income before income taxes | 24,456 | 34,458 | 35,655 |
Income tax provision | 5,012 | 6,219 | 7,167 |
Net income | $ 19,444 | $ 28,239 | $ 28,488 |
EARNINGS PER SHARE | |||
Basic | $ 0.57 | $ 0.83 | $ 0.83 |
Diluted | 0.57 | 0.83 | 0.83 |
Dividends paid per share | $ 0.40 | $ 0.58 | $ 0.50 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | |||
Net income | $ 19,444 | $ 28,239 | $ 28,488 |
Other comprehensive income, net of taxes: | |||
Pension adjustment | 801 | (166) | (242) |
Unrealized gain on securities, net of reclassification adjustments | 7 | 47 | |
Comprehensive income | $ 20,245 | $ 28,080 | $ 28,293 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock | Capital in Excess of Par Value | Retained EarningsCumulative Effect, Period of Adoption, Adjustment | Retained Earnings | Accumulated Other Comprehensive Income (Loss)Cumulative Effect, Period of Adoption, Adjustment | Accumulated Other Comprehensive Income (Loss) | Total |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Adoption of accounting standard (Note 1) | $ (3,457) | $ (68,127) | $ 1,980 | $ (69,604) | |||
Balance at Dec. 31, 2017 | $ 3,457 | 68,127 | (1,980) | 69,604 | |||
Balance (in shares) at Dec. 31, 2017 | 34,572,000 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Stock issued for stock incentive plans, net | $ 19 | $ 2,070 | 2,089 | ||||
Stock issued for stock incentive plans, net (in shares) | 190,000 | ||||||
Adoption of accounting standard (Note 1) | $ (3,433) | (73,954) | 2,175 | (75,212) | |||
Stock purchased and retired | $ (43) | (2,070) | (5,409) | (7,522) | |||
Stock purchased and retired (in shares) | (434,000) | ||||||
Net income | 28,488 | 28,488 | |||||
Pension adjustment, net of taxes | (242) | (242) | |||||
Unrealized gain on securities, net of taxes and reclassification adjustment | 47 | 47 | |||||
Dividends declared | (17,252) | (17,252) | |||||
Balance at Dec. 31, 2018 | $ 3,433 | 73,954 | (2,175) | 75,212 | |||
Balance (in shares) at Dec. 31, 2018 | 34,328,000 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Adoption of accounting standard (Note 1) | $ (3,433) | (73,954) | 2,175 | (75,212) | |||
Stock issued for stock incentive plans, net | $ 13 | 2,110 | 2,123 | ||||
Stock issued for stock incentive plans, net (in shares) | 129,000 | ||||||
Adoption of accounting standard (Note 1) | $ (3,387) | $ 414 | (76,573) | $ (414) | 2,748 | (75,212) | |
Stock purchased and retired | $ (59) | (2,110) | (6,278) | (8,447) | |||
Stock purchased and retired (in shares) | (587,000) | ||||||
Net income | 28,239 | 28,239 | |||||
Pension adjustment, net of taxes | (166) | (166) | |||||
Unrealized gain on securities, net of taxes and reclassification adjustment | 7 | 7 | |||||
Dividends declared | (19,756) | (19,756) | |||||
Balance at Dec. 31, 2019 | $ 3,387 | (414) | 76,573 | 414 | (2,748) | $ 77,212 | |
Balance (in shares) at Dec. 31, 2019 | 33,870,000 | 33,869,817 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Adoption of accounting standard (Note 1) | $ (3,387) | 414 | (76,573) | (414) | 2,748 | $ (77,212) | |
Stock issued for stock incentive plans, net | $ 17 | 3,085 | 3,102 | ||||
Stock issued for stock incentive plans, net (in shares) | 173,000 | ||||||
Adoption of accounting standard (Note 1) | $ (3,387) | $ 414 | (83,079) | $ (414) | 1,947 | (77,212) | |
Stock purchased and retired | $ (17) | $ (3,085) | 612 | (2,490) | |||
Stock purchased and retired (in shares) | (174,000) | ||||||
Net income | 19,444 | 19,444 | |||||
Pension adjustment, net of taxes | 801 | 801 | |||||
Dividends declared | (13,550) | (13,550) | |||||
Balance at Dec. 31, 2020 | $ 3,387 | 83,079 | (1,947) | $ 84,519 | |||
Balance (in shares) at Dec. 31, 2020 | 33,869,000 | 33,868,624 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Adoption of accounting standard (Note 1) | $ (3,387) | $ (83,079) | $ 1,947 | $ (84,519) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
OPERATING ACTIVITIES | |||
Net income | $ 19,444 | $ 28,239 | $ 28,488 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation Expense | 1,954 | 2,090 | 1,820 |
Gain on sale of equipment and property | (31) | ||
(Accretion) of discount/ amortization of premium related to marketable securities | (5) | 213 | |
Stock-based compensation expense | 3,102 | 2,123 | 2,089 |
Deferred income tax (benefit) provision | (311) | (620) | 378 |
Pension settlement loss | 647 | ||
(Increase) decrease in assets: | |||
Accounts receivable | 1,901 | (2,735) | (821) |
Income taxes receivable | 907 | (455) | 262 |
Inventories | (757) | 5,217 | (8,764) |
Prepaid expenses and other current assets | 109 | (261) | 301 |
Other non-current assets | (4,428) | (1,355) | (563) |
Increase (decrease) in liabilities: | |||
Accounts payable | 2,193 | (787) | (689) |
Other accrued expenses | 2,426 | (386) | (505) |
Other long-term liabilities | 2,718 | 2,852 | 566 |
Net cash provided by operating activities | 29,874 | 33,917 | 22,775 |
INVESTING ACTIVITIES | |||
Capital expenditures | (2,099) | (2,334) | (2,154) |
Proceeds from sale of assets | 34 | ||
Sales and maturities of marketable securities | 7,978 | 21,423 | |
Purchases of marketable securities | (299) | (16,209) | |
Net cash (used for) provided by investing activities | (2,065) | 5,345 | 3,060 |
FINANCING ACTIVITIES | |||
Payment of dividends | (13,550) | (19,756) | (17,252) |
Cash paid for common stock purchased and retired | (2,490) | (8,447) | (7,522) |
Net cash used for financing activities | (16,040) | (28,203) | (24,774) |
Net increase in cash and cash equivalents | 11,769 | 11,059 | 1,061 |
Cash and cash equivalents at beginning of year | 19,804 | 8,745 | 7,684 |
Cash and cash equivalents at end of year | $ 31,573 | $ 19,804 | $ 8,745 |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2020 | |
SIGNIFICANT ACCOUNTING POLICIES | |
SIGNIFICANT ACCOUNTING POLICIES | NOTE 1: SIGNIFICANT ACCOUNTING POLICIES Basis of Consolidation and Presentation The consolidated financial statements included herein may not necessarily be indicative of the future results of operations, financial position and cash flows of Marine Products. The Company has one reportable segment ā its Powerboat Manufacturing business. The Companyās results of operations and its financial condition are not significantly reliant upon any single customer or product model. No single dealer accounted for 10 percent or more of net sales during 2020, 2019 or 2018. Net sales to the Companyās international dealers were approximately $11.8 million in 2020, $17.0 million in 2019, and $19.4 million in 2018. Common Stock Preferred Stock Share Repurchases Dividend Use of Estimates in the Preparation of Financial Statements Sales Recognition Advertising Cash and Cash Equivalents Marketable Securities Management determined the appropriate classification of debt securities at the time of purchase and re-evaluates such designations as of each balance sheet date. Debt securities were classified as available-for-sale because the Company did not have the intent to hold the securities to maturity. Available-for-sale securities are stated at their fair values, with the unrealized gains and losses, net of taxes, reported as a separate component of stockholdersā equity. The cost of securities sold is based on the specific identification method. Realized gains and losses, declines in value judged to be other than temporary, interest and dividends on available-for-sale securities are included in interest income. Net realized gains (losses) on marketable securities totaled $4,000 in 2019 and $(81,000) in 2018. Of the total (losses) gains realized, reclassification from other comprehensive income totaled $4,000 in 2019 and $(81,000) in 2018. There were no gross unrealized gains or losses on marketable securities as of December 31, 2020 and 2019. Accounts Receivable Inventories Property, Plant and Equipment Goodwill and Other Intangibles Investments Warranty Costs one ā ā ā ā ā ā ā ā (in thousands) 2020 2019 Balance at beginning of year ā $ 5,410 ā $ 5,607 Less: Payments made during the year ā (3,225) ā (4,004) Add: Warranty provision for the current year ā 3,095 ā 3,788 Changes to warranty provision for prior years ā (250) ā 19 Balance at end of year ā $ 5,030 ā $ 5,410 ā Insurance Accruals Research and Development Costs Repurchase Obligations Income Taxes Retirement Income Plan 65 59 1/2 Stock-Based Compensation Earnings per Share Restricted shares of common stock (participating securities) outstanding and a reconciliation of weighted average shares outstanding is as follows: ā ā ā ā ā ā ā ā ā ā ā (In thousands) 2020 2019 2018 Net income available for stockholders ā $ 19,444 ā $ 28,239 ā $ 28,488 Less: Adjustments for earnings attributable to participating securities ā (416) ā (669) ā (762) Net income used in calculating earnings per share ā $ 19,028 ā $ 27,570 ā $ 27,726 ā ā ā ā ā ā ā ā ā ā Weighted average shares outstanding (including participating securities) ā 33,926 ā 34,061 ā 34,529 Adjustment for participating securities ā (734) ā (831) ā (959) Shares used in calculating diluted earnings per share ā 33,192 ā 33,230 ā 33,570 ā Fair Value of Financial Instruments Concentration of Suppliers Recent Accounting Pronouncements ā The FASB issued the following Accounting Standards Updates (ASUs): Recently Adopted Accounting Standards: ASU No. 2016-13, Financial Instruments āCredit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The amendments affect loans, debt securities, trade receivables, net investments in leases, off-balance sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual right to receive cash. The ASU introduced a new accounting model, the Current Expected Credit Losses model (CECL), which requires earlier recognition of credit losses and additional disclosures related to credit risk. The CECL model utilizes a lifetime expected credit loss measurement objective for recognition. The expected credit losses are adjusted each period for changes in expected lifetime. The Company adopted the provisions of the standard in the first quarter of 2020 and the adoption did not have a material impact on its consolidated financial statements. ASU No. 2017-04 āIntangibles āGoodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. ASU No. 2018-15 ā Intangibles āGoodwill and Other āInternal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. The amendments reduce the complexity for the accounting for costs of implementing a cloud computing service arrangement and align the requirements for capitalizing implementation costs that are incurred in a hosting arrangement that is a service contract with the costs incurred to develop or obtain internal-use software. The Company adopted these provisions in the first quarter of 2020 and the adoption did not have a material impact on its consolidated financial statements. Recently Issued Accounting Standards Not Yet Adopted: ā ASU No. 2019-12 ā Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. The amendments in this ASU simplify the accounting for income taxes by removing the exceptions to the incremental approach for intra-period tax allocation in certain situations, requirement to recognize a deferred tax liability for a change in the status of a foreign investment, and the general methodology for computing income taxes in an interim period when year-to date loss exceeds the anticipated loss for the year. The amendments also simplify the accounting for income taxes with regard to franchise tax, evaluation of step up in the tax basis of goodwill in certain business combinations, allocating current and deferred tax expense to legal entities that are not subject to tax and enacted change in tax laws or rates. The Company will adopt these provisions in the first quarter of 2021 and the adoption is not expected to have a material impact on its consolidated financial statements. |
NET SALES
NET SALES | 12 Months Ended |
Dec. 31, 2020 | |
Net Sales | |
Net Sales | NOTE 2: NET SALES Accounting Policy - Nature of goods - ā Boats and accessories (domestic sales) ā upon delivery and acceptance by the dealer. ā Boats and accessories (international sales) ā upon delivery to shipping port. ā Parts ā upon shipment/delivery to carrier. Payment terms - seven ten When the Company enters into contracts with its customers, it generally expects there to be no significant timing difference between the date the goods have been delivered to the customer (satisfaction of the performance obligation) and the date cash consideration is received. Accordingly, there is no financing component to the Companyās arrangements with its customers. Significant judgments Determining the transaction price - ā Inputs: Current model year boat sales, total potential program incentive percentage, prior model year results of dealer incentive activity (i.e., incentive earned as a percentage of total incentive potential). ā Assumption: Current model year incentive activity will closely reflect prior model year actual results, adjusted as necessary for dealer purchasing trends or economic factors. Other Disaggregation of revenues The following table disaggregates our sales by major source: ā ā ā ā ā ā ā ā ā ā ā (in thousands) 2020 2019 2018 Boats and accessories ā $ 235,097 ā $ 287,837 ā $ 294,537 Parts ā 4,728 ā 4,299 ā 4,079 Net sales ā $ 239,825 ā $ 292,136 ā $ 298,616 ā The following table disaggregates our revenues between domestic and international: ā ā ā ā ā ā ā ā ā ā ā (in thousands) 2020 2019 2018 Domestic ā $ 228,092 ā $ 275,133 ā $ 279,175 International ā 11,733 ā 17,003 ā 19,441 Net sales ā $ 239,825 ā $ 292,136 ā $ 298,616 ā Timing of revenue recognition for each of the periods presented is shown below: ā ā ā ā ā ā ā ā ā ā ā (in thousands) 2020 2019 2018 Products transferred at a point in time ā $ 239,825 ā $ 292,136 ā $ 298,616 Products transferred over time ā ā ā ā ā ā Net sales ā $ 239,825 ā $ 292,136 ā $ 298,616 ā Contract balances - ā ā ā ā ā ā ā ā (in thousands) 2020 2019 Deferred revenue ā $ 1,245 ā $ 295 ā Substantially all of the amounts of deferred revenue as of December 31, 2020 and December 31, 2019 were recognized as sales during the following quarter, when control transferred. |
ACCOUNTS RECEIVABLE
ACCOUNTS RECEIVABLE | 12 Months Ended |
Dec. 31, 2020 | |
ACCOUNTS RECEIVABLE | |
ACCOUNTS RECEIVABLE | NOTE 3: ACCOUNTS RECEIVABLE Accounts receivable consist of the following: ā ā ā ā ā ā ā ā December 31, 2020 2019 (in thousands) ā ā Trade receivables ā $ 3,253 ā $ 2,319 Other ā 1,469 ā 4,308 Total ā 4,722 ā 6,627 Less: allowance for credit losses ā (16) ā (20) Net accounts receivable ā $ 4,706 ā $ 6,607 ā Trade receivables consist primarily of balances related to the sales of boats which are shipped pursuant to āfloor-plan financingā programs with qualified lenders. Other receivables consist primarily of rebate receivables from various suppliers and also a state incentive receivable in 2020 and 2019. Changes in the Companyās allowance for credit losses are disclosed in Schedule II on page 66 of this report. |
INVENTORIES
INVENTORIES | 12 Months Ended |
Dec. 31, 2020 | |
INVENTORIES | |
INVENTORIES | NOTE 4: INVENTORIES Inventories consist of the following: ā ā ā ā ā ā ā ā December 31, ā 2020 2019 (in thousands) ā ā ā ā ā ā Raw materials ā $ 21,754 ā $ 24,993 Work in process ā 11,378 ā 7,731 Finished goods ā 9,178 ā 8,829 Total inventories ā $ 42,310 ā $ 41,553 ā |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2020 | |
PROPERTY, PLANT AND EQUIPMENT | |
PROPERTY, PLANT AND EQUIPMENT | NOTE 5: PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment are presented at cost, net of accumulated depreciation, and consist of the following: ā ā ā ā ā ā ā ā ā ā ā ā Estimated ā ā ā ā ā ā December 31, Useful Lives 2020 2019 (in thousands) ā ā ā ā ā ā Land N/A ā $ 878 ā $ 878 Buildings 7-40 ā 20,966 ā 20,552 Operating equipment and property 3-15 ā 12,923 ā 11,891 Furniture and fixtures 5-7 ā 2,560 ā 1,999 Vehicles 5-10 ā 7,677 ā 7,734 Gross property, plant and equipment ā ā 45,004 ā 43,054 Less: accumulated depreciation ā ā (30,066) ā (28,258) Net property, plant and equipment ā ā ā $ 14,938 ā $ 14,796 ā Depreciation expense was $1,954,000 in 2020, $2,090,000 in 2019 and $1,820,000 in 2018. The Companyās accounts payable for purchases of property and equipment was immaterial as of December 31, 2020, December 31, 2019 and December 31, 2018. |
ACCRUED EXPENSES AND OTHER LIAB
ACCRUED EXPENSES AND OTHER LIABILITIES | 12 Months Ended |
Dec. 31, 2020 | |
ACCRUED EXPENSES AND OTHER LIABILITIES | |
ACCRUED EXPENSES AND OTHER LIABILITIES | NOTE 6: ACCRUED EXPENSES AND OTHER LIABILITIES Accrued expenses and other liabilities consist of the following: ā ā ā ā ā ā ā ā December 31, 2020 2019 (in thousands) ā ā Accrued payroll and related expenses ā $ 4,458 ā $ 3,021 Accrued sales incentives and discounts ā 3,292 ā 3,716 Accrued warranty costs ā 5,030 ā 5,410 Deferred revenue ā 1,245 ā 295 Other ā 1,558 ā 713 Total accrued expenses and other liabilities ā $ 15,583 ā $ 13,155 ā |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2020 | |
INCOME TAXES | |
INCOME TAXES | NOTE 7: INCOME TAXES On March 27, 2020, the U.S. government enacted the Coronavirus Aid, Relief, and Economic Security Act (āCARES Actā) which provided a variety of tax incentives for businesses to counter the effects of the COVID -19 pandemic. The CARES Act did not have a material impact on the Companyās consolidated financial statements. The Tax Cuts and Jobs Act of 2017 (āthe Actā), effective January 1, 2018, included a reduction to the US federal tax rate from 35 percent to 21 percent and resulted in adjustments in the carrying amounts of deferred tax assets and liabilities for the new corporate income tax rate, and modified the calculation of deductible compensation of our executive officers. Included among other international provisions, the Act provides for a deduction on certain qualifying income related to export sales of property or services referred to as Foreign Derived Intangible Income (āFDIIā), and the elimination of the US manufacturing deduction. In accordance with the Securities and Exchange Commission Staff Accounting Bulletin No. 118, the Company completed its accounting for the provisional amounts recognized under the Act as of December 31, 2017 and recorded a reduction in tax expense of $0.1 million, in the fourth quarter of 2018. The 2020 tax expense includes an estimated tax benefit associated with FDII of $103 thousand. The following table lists the components of the provision for income taxes: ā ā ā ā ā ā ā ā ā ā ā Years ended December 31, 2020 2019 2018 (in thousands) ā ā ā Current provision: ā ā ā Federal ā $ 4,741 ā $ 6,637 ā $ 6,173 State ā 582 ā 202 ā 616 Deferred (benefit) provision: ā ā ā ā Federal ā (410) ā (715) ā 384 State ā 99 ā 95 ā (6) Total income tax provision ā $ 5,012 ā $ 6,219 ā $ 7,167 ā A reconciliation between the federal statutory rate and Marine Productsā effective tax rate is as follows: ā ā ā ā ā ā ā ā ā Years ended December 31, 2020 2019 2018 Federal statutory rate 21.0 % 21.0 % 21.0 % State income taxes, net of federal benefit 1.4 1.0 1.5 Research and experimentation credit (1.5) (1.2) (0.8) Non-deductible expenses ā 0.1 ā (0.7) ā 0.4 ā Change in contingencies 0.1 (0.1) 0.4 Adjustments related to the Act ā ā (0.3) Adjustments related to vesting of restricted stock (1.5) (1.5) (1.8) Other 0.9 (0.5) (0.3) Effective tax rate 20.5 % 18.0 % 20.1 % ā Significant components of the Companyās deferred tax assets and liabilities are as follows: ā ā ā ā ā ā ā ā December 31, 2020 2019 (in thousands) ā ā Deferred tax assets: ā ā Warranty costs ā $ 1,107 ā $ 1,190 Sales incentives and discounts ā 278 ā 404 Stock-based compensation ā 717 ā 696 Pension ā 2,365 ā 2,002 State NOLās ā ā 423 ā ā 484 State credits ā ā 1,818 ā ā 1,818 All others ā 635 ā 560 Valuation allowance ā (1,818) ā (1,818) Total deferred tax assets ā 5,525 ā 5,336 Deferred tax liabilities: ā ā Depreciation and amortization expense ā (965) ā (947) Basis differences in joint venture ā (485) ā (399) Net deferred tax assets ā $ 4,075 ā $ 3,990 ā Total net income tax payments were $4,099,000 in 2020, $7,330,000 in 2019, and $6,290,000 in 2018. As of December 31, 2020, the Company had net operating loss carryforwards related to state income taxes of approximately $10.6 million and other state credits of approximately $2.3 million (gross) that will expire between 2021 and 2035. The Company does not have a valuation allowance related to net operating loss carryforwards due to implemented tax planning strategies. The Company has a valuation allowance against the corresponding deferred tax asset on all state tax credits because, at this time, the Company does not expect to utilize them. The Companyās policy is to record interest and penalties related to income tax matters as income tax expense. Accrued interest and penalties were immaterial as of December 31, 2020 and 2019. During 2020, the Company recognized an increase in its liability for unrecognized tax benefits related primarily to state income taxes. The liability, if recognized, would affect our effective rate. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: ā ā ā ā ā ā ā ā ā 2020 2019 Balance at January 1 ā $ 358,000 ā $ 393,000 Additions (reductions) based on tax positions related to the current year ā 34,000 ā (28,000) Additions (reductions) for tax positions of prior years ā 9,000 ā (7,000) Balance at December 31 ā $ 401,000 ā $ 358,000 ā It is reasonably possible that the amount of the unrecognized benefits with respect to the Companyās unrecognized tax positions will increase or decrease in the next 12 months. These changes may be the result of, among other things, state tax settlements under voluntary disclosure agreements. However, quantification of an estimated range cannot be made at this time. The Company and its subsidiaries are subject to U.S. federal and state income tax in multiple jurisdictions. In many cases, the uncertain tax positions are related to tax returns that remain open and subject to examination by the relevant taxing authorities. The Companyās 2016 through 2019 tax returns remain open to examination. Additional years may be open to the extent attributes are being carried forward to an open year. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE LOSS | 12 Months Ended |
Dec. 31, 2020 | |
ACCUMULATED OTHER COMPREHENSIVE LOSS | |
ACCUMULATED OTHER COMPREHENSIVE LOSS | NOTE 8: ACCUMULATED OTHER COMPREHENSIVE LOSS Accumulated other comprehensive loss consists of the following: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Unrealized ā ā ā ā ā ā ā ā Gain (Loss) ā ā ā ā ā Pension ā on ā ā ā ā Adjustment Securities Total (in thousands) ā ā ā Balance at December 31, 2018 ā $ (2,178) ā $ 3 ā $ (2,175) Adoption of accounting standard (Note 1) ā ā (404) ā ā (10) ā ā (414) Before-tax amount ā (300) ā 13 ā (287) Tax benefit ā 66 ā (3) ā 63 Reclassification adjustment, net of taxes ā ā ā Amortization of net loss ā 68 ā ā ā 68 Net realized loss ā ā ā (3) ā (3) Total activity in 2019 ā (570) ā (3) ā (573) Balance at December 31, 2019 ā $ (2,748) ā $ ā ā $ (2,748) Before-tax amount ā 250 ā ā ā 250 Tax expense ā (30) ā ā ā (30) Reclassification adjustment, net of taxes ā ā ā ā Amortization of net loss ā 76 ā ā ā 76 Pension settlement loss ā 505 ā ā ā 505 Total activity in 2020 ā 801 ā ā ā 801 Balance at December 31, 2020 ā $ (1,947) ā $ ā ā $ (1,947) ā |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2020 | |
FAIR VALUE MEASUREMENTS | |
FAIR VALUE MEASUREMENTS | NOTE 9: FAIR VALUE MEASUREMENTS The various inputs used to measure assets at fair value establish a hierarchy that distinguishes between assumptions based on market data (observable inputs) and the Companyās assumptions (unobservable inputs). The hierarchy consists of three broad levels as follows: 1. Level 1 ā Quoted market prices in active markets for identical assets or liabilities. 2. Level 2 ā Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities. 3. Level 3 ā Unobservable inputs developed using the Companyās estimates and assumptions, which reflect those that market participants would use. ā The Company determines the fair value of the marketable securities that are available-for-sale through quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in markets that are not active. There are no available-for-sale securities held as of December 31, 2020 and 2019. Trading securities are comprised of SERP assets, as described in Note 11, and are recorded primarily at their net cash surrender values calculated using their net asset values, which approximate fair value, as provided by the issuing insurance company. Trading securities were $10,622,000 as of December 31, 2020 and $6,716,000 as of December 31, 2019. Significant observable inputs, in addition to quoted market prices, were used to value the trading securities. The Companyās policy is to recognize transfers between levels at the beginning of quarterly reporting periods. For the year ended December 31, 2020 there were 1 2 3 The carrying amount of other financial instruments reported in the balance sheet for current assets and current liabilities approximate their fair values because of the short-term maturity of these instruments. The Company currently does not use the fair value option to measure any of its existing financial instruments and has not determined whether or not it will elect this option for financial instruments it may acquire in the future. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2020 | |
COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | NOTE 10: COMMITMENTS AND CONTINGENCIES Lawsuits Dealer Floor Plan Financing The Company had no repurchases of dealer inventory under contractual agreements during 2020 and had repurchases totaling $3.4 million during 2019 as a result of dealer defaults. During 2019, the Company redistributed $3.1 million of these boats among existing and replacement dealers. As of December 31, 2020, no liability related to repurchases remains outstanding to floor plan lenders. The remaining repurchased boats were included in inventory as of December 31, 2019 and were recorded at a net realizable value of $0.3 million. The Company recorded $0.1 million for costs associated with these repurchases in 2019 including a reserve for estimated transportation costs and the write down of repurchased inventory to net realizable value. As of December 31, 2020, no liability related to this repurchase remains outstanding. Management continues to monitor the risk of additional defaults and resulting repurchase obligations based in part on information provided by the third-party floor plan lenders and will adjust the guarantee liability at the end of each reporting period based on information reasonably available at that time. The Company currently has an agreement with one of the floor plan lenders whereby the contractual repurchase limit is not to exceed 16 percent of the average net receivables financed by the floor plan lender for dealers during the prior 12 month period, which was $9.7 million as of December 31, 2020. The Company has contractual repurchase agreements with additional lenders with an aggregate maximum repurchase obligation of approximately $3.5 million, with various expiration and cancellation terms of less than one year, for an aggregate repurchase obligation with all financing institutions of approximately $13.2 million as of December 31, 2020. This repurchase obligation risk is mitigated by the value of the boat repurchased. Income Taxes Employment Agreement |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 12 Months Ended |
Dec. 31, 2020 | |
EMPLOYEE BENEFIT PLANS | |
EMPLOYEE BENEFIT PLANS | NOTE 11: EMPLOYEE BENEFIT PLANS Supplemental Executive Retirement Plan (āSERPā) The Company classifies the SERP assets as trading securities as described in Note 1. The fair value of these assets totaled $10,622,000 as of December 31, 2020 and $6,716,000 as of December 31, 2019. The SERP assets are reported in other assets on the consolidated balance sheets and changes related to the fair value of the assets are included in selling, general and administrative expenses in the consolidated statements of operations. Trading (losses) gains related to the SERP assets totaled $906,000 in 2020, $1,197,000 in 2019 and $(544,000) in 2018. The SERP liabilities are recorded on the balance sheet in pension liabilities with any change in the fair value of the SERP liabilities recorded as selling, general and administrative expenses in the consolidated statements of operations. Retirement Income Plan In October 2020, the Company amended the Retirement Income Plan to add a limited lump-sum payment window for vested terminated participants who had terminated employment before July 1, 2020 and for active employees who reached age 59 Ā½ by December 1, 2020, with a vested balance. The participants could elect to receive their vested balance immediately as a lump-sum or a monthly annuity payment. The lump-sum payment window offering ended during the fourth quarter of 2020 and plan assets were used to fund participant elections. The resulting non-cash settlement charges represent the accelerated recognition of actuarial losses reflected in accumulated other comprehensive income (AOCI). A settlement loss of $0.6 million associated with the acceptance of these lump-sum payments is included as part of selling, general and administrative expenses in the consolidated statements of operations. The Companyās fair value of the plan assets exceeded the projected benefit obligation for its Retirement Income Plan by $1,775,000 and thus the plan was over-funded as of December 31, 2020. The following table sets forth the funded status of the Retirement Income Plan and the amounts recognized in Marine Productsā consolidated balance sheets: ā ā ā ā ā ā ā ā December 31, 2020 2019 (in thousands) ā ā ACCUMULATED BENEFIT OBLIGATION, END OF YEAR ā $ 5,576 ā $ 6,433 ā ā ā ā ā ā ā CHANGE IN PROJECTED BENEFIT OBLIGATION: ā ā ā Benefit obligation at beginning of year ā $ 6,433 ā $ 5,833 Service cost ā ā ā ā Interest cost ā 230 ā 255 Actuarial loss ā 622 ā 570 Benefits paid ā (264) ā (225) Settlement ā ā (1,445) ā ā ā Projected benefit obligation at end of year ā $ 5,576 ā $ 6,433 CHANGE IN PLAN ASSETS: ā ā ā Fair value of plan assets at beginning of year ā $ 7,314 ā $ 6,802 Actual return on plan assets ā 1,196 ā 737 Employer contributions ā 550 ā ā Benefits paid ā (264) ā (225) Settlements ā ā (1,445) ā ā ā Fair value of plan assets at end of year ā $ 7,351 ā $ 7,314 Funded status at end of year ā $ 1,775 ā $ 881 ā ā ā ā ā ā ā ā December 31, 2020 2019 (in thousands) ā ā ā ā ā ā AMOUNTS RECOGNIZED IN THE CONSOLIDATED BALANCE SHEETS CONSIST OF: ā ā ā ā ā ā Noncurrent assets ā $ 1,775 ā $ 881 Current liabilities ā ā ā ā Noncurrent liabilities ā ā ā ā ā ā $ 1,775 ā $ 881 ā The funded status of the Retirement Income Plan was recorded in the consolidated balance sheets in other assets as of both December 31, 2020 and December 31, 2019. ā ā ā ā ā ā ā ā December 31, 2020 2019 (in thousands) ā ā AMOUNTS (PRE-TAX) RECOGNIZED IN ACCUMULATED OTHER COMPREHENSIVE LOSS CONSIST OF: ā ā Net loss ā $ 2,496 ā $ 3,524 Prior service cost (credit) ā ā ā ā Net transition obligation (asset) ā ā ā ā ā ā $ 2,496 ā $ 3,524 ā The accumulated benefit obligation for the Retirement Income Plan as of December 31, 2020 and 2019 has been disclosed above. The Company uses a December 31 measurement date for this qualified plan. Amounts recorded in the consolidated balance sheet as pension liabilities consist of: ā ā ā ā ā ā ā ā December 31, 2020 2019 (in thousands) ā ā SERP liability ā $ (12,524) ā $ (9,980) Funded status of Retirement Income Plan ā ā ā ā Pension liabilities ā $ (12,524) ā $ (9,980) ā Marine Productsā funding policy is to contribute to the Retirement Income Plan the amount required, if any, under the Employee Retirement Income Security Act of 1974. The Company contributed $550,000 during 2020 and $770,000 during 2019 to the plan. The components of net periodic benefit cost of the Retirement Income Plan are summarized as follows: ā ā ā ā ā ā ā ā ā ā ā Years ended December 31, 2020 2019 2018 (in thousands) ā ā ā ā ā ā ā ā ā Service cost for benefits earned during the period ā $ ā ā $ ā ā $ ā Interest cost on projected benefit obligation ā 230 ā 255 ā 251 Expected return on plan assets ā (292) ā (468) ā (501) Amortization of net loss ā 98 ā 87 ā 81 Settlement loss ā ā 647 ā ā ā ā ā ā ā ā $ 683 ā $ (126) ā $ (169) ā The Company recognized pre-tax decreases to the funded status in accumulated other comprehensive loss of $899,000 in 2020 and other comprehensive income of $213,000 in 2019 and $314,000 in 2018. There were no previously unrecognized prior service costs during 2020, 2019 and 2018. The pre-tax amounts recognized in other comprehensive income for the years ended December 31, 2020, 2019 and 2018 are summarized as follows: ā ā ā ā ā ā ā ā ā ā ā (in thousands) 2020 2019 2018 Net loss (gain) ā $ (154) ā $ 300 ā $ 395 Amortization of net loss ā (98) ā (87) ā (81) Net transition obligation (asset) ā ā ā ā ā ā Settlement loss ā ā (647) ā ā ā ā ā ā Amount recognized in accumulated other comprehensive (loss) income ā $ (899) ā $ 213 ā $ 314 ā The weighted average assumptions as of December 31 used to determine the projected benefit obligation and net benefit cost were as follows: ā ā ā ā ā ā ā ā ā December 31, 2020 2019 2018 PROJECTED BENEFIT OBLIGATION: ā Discount rate 2.70 % 3.70 % 4.65 % Rate of compensation increase N/A N/A N/A NET BENEFIT COST: Discount rate 3.70 % 4.65 % 4.05 % Expected return on plan assets 4.00 % 7.00 % 7.00 % Rate of compensation increase N/A N/A N/A ā The Companyās expected return on assets assumption is derived from a detailed periodic assessment by its management and investment advisor. It includes a review of anticipated future long-term performance of individual asset classes and consideration of the appropriate asset allocation strategy given the anticipated requirements of the plan to determine the average rate of earnings expected on the funds invested to provide for the pension plan benefits. While the assessment considers recent fund performance and historical returns, the rate of return assumption is derived primarily from a long-term, prospective view. Based on its recent assessment, the Company has concluded that its expected long-term return assumption of four percent is reasonable. The planās weighted average asset allocation at December 31, 2020 and 2019 by asset category along with the target allocation for 2020 are as follows: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Percentage of ā Percentage of ā ā ā ā ā ā ā Plan Assets as of ā Plan Assets as of ā ā Target Allocation ā December 31, ā December 31, Asset Category for 2021 2020 2019 Cash and Cash Equivalents 0 % - 5 % 2.0 % 1.3 % Fixed Income Securities 15 % - 100 % 98.0 91.7 ā Investments measured at net asset value ā % ā 7.0 ā Total ā ā ā 100.0 % 100.0 % 100.0 % ā The Companyās investments consist primarily of fixed-income securities that include corporate bonds, mortgage-backed securities, sovereign bonds, and U.S. Treasuries. For each of the asset categories in the pension plan, the investment strategy is identical ā maximize the long-term rate of return on plan assets while minimizing the level of risk to minimize the cost of providing pension benefits. The investment policy establishes a target allocation for each asset class which is rebalanced as required. The plan utilizes a number of investment approaches, including but not limited to individual market securities, equity and fixed income funds in which the underlying securities are marketable, and debt funds to achieve this target allocation. Although not required, the Company is currently evaluating the cash contributions to the pension plan during fiscal year 2021. The following tables present our plan assets using the fair value hierarchy as of December 31, 2020 and 2019. The fair value hierarchy has three levels based on the reliability of the inputs used to determine fair value. See Note 8 for a brief description of the three levels under the fair value hierarchy. Fair Value Hierarchy as of December 31, 2020: ā ā ā ā ā ā ā ā ā ā ā ā ā ā Investments (in thousands) ā ā Total Level 1 Level 2 Cash and Cash Equivalents ā (1) ā $ 138 ā $ 138 ā $ ā Fixed Income Securities ā (2) ā 7,213 ā ā ā 7,213 Total Assets in the Fair Value Hierarchy ā ā ā ā $ 7,351 ā $ 138 ā $ 7,213 Investments Measured at Net Asset Value ā ā ā ā ā ā ā Investments at Fair Value ā ā ā ā $ 7,351 ā ā ā Fair Value Hierarchy as of December 31, 2019: ā ā ā ā ā ā ā ā ā ā ā ā ā Investments (in thousands) ā ā Total Level 1 Level 2 Cash and Cash Equivalents ā (1) ā $ 92 ā $ 92 ā $ ā Fixed Income Securities ā (2) ā 6,708 ā ā ā 6,708 Total Assets in the Fair Value Hierarchy ā ā ā ā $ 6,800 ā $ 92 ā $ 6,708 Investments Measured at Net Asset Value ā ā ā ā 514 ā ā Investments at Fair Value ā ā ā ā $ 7,314 ā ā ā (1) Cash and cash equivalents, which are used to pay benefits and plan administrative expenses, are held in Rule 2a-7 money market funds. (2) Fixed income securities are primarily valued using a market approach with inputs that include broker quotes, benchmark yields, base spreads and reported trades. ā The Company estimates that the future benefits payable for the Retirement Income Plan over the next ten years are as follows: ā ā ā ā ā (in thousands) ā 2021 ā $ 264 2022 ā 264 2023 ā 266 2024 ā 266 2025 ā 264 2026-2030 ā $ 1,384 ā 401(k) Plan Effective January 1, 2019, the Company began matching 100 percent of employeeās contributions for each dollar of a participantās contribution to the 401(k) Plan for the first three percent of his or her annual compensation, and fifty percent for each dollar of a participantās contribution to the 401(k) Plan for the next three percent of his or her annual compensation. Employees vest in the Companyās contributions after three years of service. The charges to expense for Marine Productsā contributions to the 401(k) plan were $603,000 in 2020, $796,000 in 2019 and $319,000 in 2018. Stock Incentive Plan expiring in April 2024. All future equity compensation awards by the Company will be issued under the 2014 plan. This plan provides for the issuance of various forms of stock incentives, including among others, incentive and non-qualified stock options and restricted shares. As of December 31, 2020, there were 1,569,700 shares available for grant. The Company recognizes compensation expense for the unvested portion of awards outstanding over the remainder of the service period. The compensation cost recorded for these awards will be based on their fair value at grant date less the cost of estimated forfeitures. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods to reflect actual forfeitures. Pre-tax stock-based employee compensation expense was approximately $3,102,000 ($2,420,000 after tax) for 2020, $2,123,000 ($1,656,000 after tax) for 2019, and $2,089,000 ($1,629,000 after tax) for 2018. Stock Options The Company estimates the fair value of stock options as of the date of grant using the Black-Scholes option pricing model. The Company has not granted stock options to employees since 2004. There were no options exercised in 2020, 2019 or 2018 and there are no stock options outstanding as of December 31, 2020. Restricted Stock The agreements under which the restricted stock is issued provide that shares awarded may not be sold or otherwise transferred until restrictions established under the stock plans have lapsed. Upon termination of employment from the Company, with the exception of death (fully vests), disability or retirement (partially vests based on duration of service), shares with restrictions are forfeited in accordance with the plan. The following is a summary of the changes in non-vested restricted shares for the year ended December 31, 2020: ā ā ā ā ā ā ā ā ā ā ā Weighted Average ā ā ā ā Grant-Date Fair ā Shares Value Non-vested shares at January 1, 2020 815,540 ā $ 11.29 Granted 179,000 ā ā 15.00 Vested (310,520) ā ā 9.91 Forfeited (5,800) ā ā 13.09 Non-vested shares at December 31, 2020 678,220 ā $ 12.89 ā The following is a summary of the changes in non-vested restricted shares for the year ended December 31, 2019: ā ā ā ā ā ā ā ā ā ā ā Weighted Average ā ā ā ā Grant-Date Fair ā Shares Value Non-vested shares at January 1, 2019 947,710 ā $ 9.41 Granted 141,600 ā ā 17.21 Vested (260,770) ā ā 7.65 Forfeited (13,000) ā ā 11.68 Non-vested shares at December 31, 2019 815,540 ā $ 11.29 ā The fair value of restricted stock awards is based on the market price of the Companyās stock on the date of grant and is amortized to compensation expense on a straight-line basis over the requisite service period. The weighted average grant date fair value of these restricted stock awards was $15.00 in 2020, $17.21 in 2019 and $13.97 in 2018. The total fair value of shares vested was approximately $4,431,000 in 2020, $3,818,000 in 2019 and $4,289,000 during 2018. For the year ending December 31, 2020 approximately $363,000 of excess tax benefits for stock-based compensation awards were recorded as a discrete tax adjustment and classified within operating activities in the consolidated statements of cash flows compared to approximately $517,000 for the year ending December 31, 2019. Other Information which is expected to be recognized over a weighted-average period of 3.1 years. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2020 | |
RELATED PARTY TRANSACTIONS | |
RELATED PARTY TRANSACTIONS | NOTE 12: RELATED PARTY TRANSACTIONS In conjunction with its spin-off from RPC in 2001, the Company and RPC entered into various agreements that define the companiesā relationship after the spin-off. The Transition Support Services Agreement provides for RPC to provide certain services, including financial reporting and income tax administration, acquisition assistance, etc., to Marine Products until the agreement is terminated by either party. Marine Products reimbursed RPC for its estimated allocable share of administrative costs incurred for services rendered on behalf of Marine Products totaling $846,000 in 2020, $865,000 in 2019, and $873,000 in 2018. The Companyās payable to RPC for these services was $49,000 as of December 31, 2020 and $56,000 as of December 31, 2019. Many of the Companyās directors are also directors of RPC and the Companyās executive officers are employees of both the Company and RPC. The Employee Benefits Agreement provides for, among other things, the Companyās employees to continue participating subsequent to the spin-off in two RPC sponsored benefit plans, specifically, the defined contribution 401(k) plan and the defined benefit retirement income plan. RPC and Marine Products own 50 percent each of a limited liability company called 255 RC, LLC that was created for the joint purchase and ownership of a corporate aircraft. The purchase was funded primarily by a $2,554,000 contribution by each company to 255 RC, LLC. Each of RPC and Marine Products is currently a party to an operating lease agreement with 255 RC, LLC for a period of five years . Marine Products recorded certain net operating costs comprised of rent and an allocable share of fixed costs of $160,000 in 2020 and $159,000 in 2019 and 2018 for the corporate aircraft. The Company has a payable to 255 RC LLC of $1.2 million as of December 31, 2020 and $1.0 million as of December 31, 2019. The Company accounts for this investment using the equity method and its proportionate share of income or loss is recorded in selling, general and administrative expenses. As of December 31, 2020, the investment closely approximates the underlying equity in the net assets of 255 RC, LLC and the undistributed earnings represented in retained earnings was approximately $462,000. A group that includes the Companyās Chairman of the Board, Gary W. Rollins, who is also director of the Company, and certain companies under their control, controls in excess of fifty percent of the Companyās voting power. |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2020 | |
LEASES | |
LEASES | NOTE 13: LEASES The Company adopted ASU No. 2016-02, Leases (Topic 842) on January 1, 2019 and recognized leases with duration greater than 12 months on the balance sheet using the modified retrospective approach. In addition, the Company elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allowed for a carry-forward of the historical lease classification. For leases with terms greater than 12 months, the Company has recorded the related Right-Of-Use asset and liability at the present value of lease payments over the term. Renewal options have been factored into the determination of lease payments when appropriate. There are no residual value guarantees on the existing leases. The Company estimates its incremental borrowing rate, at lease commencement, to determine the present value of lease payments, since most of the Companyās leases do not provide an implicit rate of return. The Companyās lease population consists primarily of office equipment. The Company does not have any finance leases. The Company determines at contract inception, if an arrangement is a lease or contains a lease based on whether the Company obtains the right to control the use of specifically identifiable property, plant and equipment for a period of time in exchange for consideration. The Company has elected not to separate non-lease components from lease components for its leases. Variable lease payments are recognized as expense when incurred. As of December 31, 2020, the Company had no operating leases that had not yet commenced. Lease position: The table below presents the assets and liabilities related to operating leases recorded on the balance sheet: ā ā ā ā ā ā ā ā ā ā ā ā ā ā December 31, ā Classification on Consolidated Balance Sheet 2020 2019 (in thousands) ā ā ā ā ā ā ā ā Assets: ā ā ā Operating lease right-of-use assets Other assets ā $ 124 ā $ 159 ā ā ā ā ā ā ā ā ā Liabilities: ā ā Current portion of operating lease liabilities Accrued expenses and other liabilities ā $ 52 ā $ 47 Long-term operating lease liabilities Other long-term liabilities ā 70 ā 110 Total lease liabilities ā $ 122 ā $ 157 ā Lease Costs: The components of lease expense are included in selling, general and administrative expenses in the consolidated statements of operations as disclosed below: ā ā ā ā ā ā ā ā Year ended December 31, 2020 2019 (in thousands) ā ā ā ā Operating lease cost ā $ 54 ā $ 52 Short-term lease cost ā 2 ā 3 Total lease cost ā $ 56 ā $ 55 ā Total rental expense, charged to operations related to operating leases under the previous lease standard, was $191,000 in 2018. Other information: ā ā ā ā ā ā ā ā ā As of December 31, 2020 2019 Cash paid for amounts included in the measurement of lease liabilities ā operating leases (in thousands) ā $ 49 ā $ 46 ā ROU assets obtained in exchange for operating lease liabilities (in thousands) ā $ 14 ā $ ā ā Weighted average remaining lease term ā operating leases (years) ā 2.5 ā 3.3 ā Weighted average discount rate ā operating leases ā 3.48 % 3.68 % ā Lease Commitments: Maturity of lease liabilities - Operating Leases: ā ā ā ā ā ā ā ā As of December 31, ā 2020 2019 (in thousands) ā ā ā ā ā 2020 $ ā $ 52 2021 ā 55 ā 52 2022 ā 55 ā 52 2023 ā 13 ā 10 2024 ā 3 ā ā 2025 ā 1 ā ā Total lease payments ā 127 ā 166 Less: Amounts representing interest ā (5) ā (9) Present value of lease liabilities ā $ 122 ā $ 157 ā In the second quarter of 2019, the company entered into an operating lease as the lessor for certain real estate leased to a third party under an operating lease with an initial term of 36 months . The lease requires fixed monthly payments and does not contain clauses for future rent escalations or renewal options. There are no terms and conditions under which the lessee has the option to purchase this asset. As of December 31, 2020, projected future lease income on this lease totaled $294,375 scheduled to be received as follows: 2021 - $235,500 and 2022 - $58,875. During the year ended December 31, 2020, the company recorded rental income of $236,000 that is classified as part of selling, general and administrative expenses on the consolidated statements of operations. |
SCHEDULE II-VALUATION AND QUALI
SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Dec. 31, 2020 | |
SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS | |
SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS | SCHEDULE IIāVALUATION AND QUALIFYING ACCOUNTS MARINE PRODUCTS CORPORATION AND SUBSIDIARIES (in thousands of dollars) ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā For the years ended December 31, 2020, 2019 and 2018 ā ā Balance at ā Charged to ā Net ā Balance ā ā Beginning ā Costs and ā (Write-Offs)/ ā at End of Description ā of Period ā Expenses ā Recoveries ā Period Year ended December 31, 2020 ā ā ā ā ā ā ā ā ā ā ā ā Credit loss allowance for accounts receivable ā $ 20 ā $ 8 ā $ (12) ā $ 16 Deferred tax asset valuation allowance ā $ 1,818 ā $ ā ā $ ā ā $ 1,818 Year ended December 31, 2019 ā ā ā ā ā ā ā ā ā ā ā ā Credit loss allowance for accounts receivable ā $ 25 ā $ 14 ā $ (19) ā $ 20 Deferred tax asset valuation allowance ā $ 2,794 ā $ ā ā $ (976) ā $ 1,818 Year ended December 31, 2018 ā ā ā ā ā ā ā ā ā ā ā ā Credit loss allowance for accounts receivable ā $ 25 ā $ ā ā $ ā ā $ 25 Deferred tax asset valuation allowance ā $ 5,447 ā $ ā ā $ (2,653) ā $ 2,794 ā ā |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
SIGNIFICANT ACCOUNTING POLICIES | |
Basis of Consolidation and Presentation | Basis of Consolidation and Presentation The consolidated financial statements included herein may not necessarily be indicative of the future results of operations, financial position and cash flows of Marine Products. The Company has one reportable segment ā its Powerboat Manufacturing business. The Companyās results of operations and its financial condition are not significantly reliant upon any single customer or product model. No single dealer accounted for 10 percent or more of net sales during 2020, 2019 or 2018. Net sales to the Companyās international dealers were approximately $11.8 million in 2020, $17.0 million in 2019, and $19.4 million in 2018. |
Common Stock | Common Stock |
Preferred Stock | Preferred Stock |
Share Repurchases | Share Repurchases |
Dividend | Dividend |
Use of Estimates in the Preparation of Financial Statements | Use of Estimates in the Preparation of Financial Statements |
Sales Recognition | Sales Recognition |
Advertising | Advertising |
Cash and Cash Equivalents | Cash and Cash Equivalents |
Marketable Securities | Marketable Securities Management determined the appropriate classification of debt securities at the time of purchase and re-evaluates such designations as of each balance sheet date. Debt securities were classified as available-for-sale because the Company did not have the intent to hold the securities to maturity. Available-for-sale securities are stated at their fair values, with the unrealized gains and losses, net of taxes, reported as a separate component of stockholdersā equity. The cost of securities sold is based on the specific identification method. Realized gains and losses, declines in value judged to be other than temporary, interest and dividends on available-for-sale securities are included in interest income. Net realized gains (losses) on marketable securities totaled $4,000 in 2019 and $(81,000) in 2018. Of the total (losses) gains realized, reclassification from other comprehensive income totaled $4,000 in 2019 and $(81,000) in 2018. There were no gross unrealized gains or losses on marketable securities as of December 31, 2020 and 2019. |
Accounts Receivable | Accounts Receivable |
Inventories | Inventories |
Property, Plant and Equipment | Property, Plant and Equipment |
Goodwill and Other Intangibles | Goodwill and Other Intangibles |
Investments | Investments |
Warranty Costs | Warranty Costs one ā ā ā ā ā ā ā ā (in thousands) 2020 2019 Balance at beginning of year ā $ 5,410 ā $ 5,607 Less: Payments made during the year ā (3,225) ā (4,004) Add: Warranty provision for the current year ā 3,095 ā 3,788 Changes to warranty provision for prior years ā (250) ā 19 Balance at end of year ā $ 5,030 ā $ 5,410 |
Insurance Accruals | Insurance Accruals |
Research and Development Costs | Research and Development Costs |
Repurchase Obligations | Repurchase Obligations |
Income Taxes | Income Taxes |
Retirement Income Plan | Retirement Income Plan 65 59 1/2 |
Stock-Based Compensation | Stock-Based Compensation |
Earnings per Share | Earnings per Share Restricted shares of common stock (participating securities) outstanding and a reconciliation of weighted average shares outstanding is as follows: ā ā ā ā ā ā ā ā ā ā ā (In thousands) 2020 2019 2018 Net income available for stockholders ā $ 19,444 ā $ 28,239 ā $ 28,488 Less: Adjustments for earnings attributable to participating securities ā (416) ā (669) ā (762) Net income used in calculating earnings per share ā $ 19,028 ā $ 27,570 ā $ 27,726 ā ā ā ā ā ā ā ā ā ā Weighted average shares outstanding (including participating securities) ā 33,926 ā 34,061 ā 34,529 Adjustment for participating securities ā (734) ā (831) ā (959) Shares used in calculating diluted earnings per share ā 33,192 ā 33,230 ā 33,570 |
Fair Value of Financial Instruments | Fair Value of Financial Instruments |
Concentration of Suppliers | Concentration of Suppliers |
Recent Accounting Pronouncements | Recent Accounting Pronouncements ā The FASB issued the following Accounting Standards Updates (ASUs): Recently Adopted Accounting Standards: ASU No. 2016-13, Financial Instruments āCredit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The amendments affect loans, debt securities, trade receivables, net investments in leases, off-balance sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual right to receive cash. The ASU introduced a new accounting model, the Current Expected Credit Losses model (CECL), which requires earlier recognition of credit losses and additional disclosures related to credit risk. The CECL model utilizes a lifetime expected credit loss measurement objective for recognition. The expected credit losses are adjusted each period for changes in expected lifetime. The Company adopted the provisions of the standard in the first quarter of 2020 and the adoption did not have a material impact on its consolidated financial statements. ASU No. 2017-04 āIntangibles āGoodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. ASU No. 2018-15 ā Intangibles āGoodwill and Other āInternal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. The amendments reduce the complexity for the accounting for costs of implementing a cloud computing service arrangement and align the requirements for capitalizing implementation costs that are incurred in a hosting arrangement that is a service contract with the costs incurred to develop or obtain internal-use software. The Company adopted these provisions in the first quarter of 2020 and the adoption did not have a material impact on its consolidated financial statements. Recently Issued Accounting Standards Not Yet Adopted: ā ASU No. 2019-12 ā Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. The amendments in this ASU simplify the accounting for income taxes by removing the exceptions to the incremental approach for intra-period tax allocation in certain situations, requirement to recognize a deferred tax liability for a change in the status of a foreign investment, and the general methodology for computing income taxes in an interim period when year-to date loss exceeds the anticipated loss for the year. The amendments also simplify the accounting for income taxes with regard to franchise tax, evaluation of step up in the tax basis of goodwill in certain business combinations, allocating current and deferred tax expense to legal entities that are not subject to tax and enacted change in tax laws or rates. The Company will adopt these provisions in the first quarter of 2021 and the adoption is not expected to have a material impact on its consolidated financial statements. |
SIGNIFICANT ACCOUNTING POLICI_3
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
SIGNIFICANT ACCOUNTING POLICIES | |
Schedule of analysis of warranty accruals | ā ā ā ā ā ā ā ā (in thousands) 2020 2019 Balance at beginning of year ā $ 5,410 ā $ 5,607 Less: Payments made during the year ā (3,225) ā (4,004) Add: Warranty provision for the current year ā 3,095 ā 3,788 Changes to warranty provision for prior years ā (250) ā 19 Balance at end of year ā $ 5,030 ā $ 5,410 |
Schedule of reconciliation of weighted average shares outstanding | ā ā ā ā ā ā ā ā ā ā ā (In thousands) 2020 2019 2018 Net income available for stockholders ā $ 19,444 ā $ 28,239 ā $ 28,488 Less: Adjustments for earnings attributable to participating securities ā (416) ā (669) ā (762) Net income used in calculating earnings per share ā $ 19,028 ā $ 27,570 ā $ 27,726 ā ā ā ā ā ā ā ā ā ā Weighted average shares outstanding (including participating securities) ā 33,926 ā 34,061 ā 34,529 Adjustment for participating securities ā (734) ā (831) ā (959) Shares used in calculating diluted earnings per share ā 33,192 ā 33,230 ā 33,570 |
NET SALES (Tables)
NET SALES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Net Sales | |
Schedule of disaggregation of sales by major source | ā ā ā ā ā ā ā ā ā ā ā (in thousands) 2020 2019 2018 Boats and accessories ā $ 235,097 ā $ 287,837 ā $ 294,537 Parts ā 4,728 ā 4,299 ā 4,079 Net sales ā $ 239,825 ā $ 292,136 ā $ 298,616 |
Schedule of revenue by geographic region | ā ā ā ā ā ā ā ā ā ā ā (in thousands) 2020 2019 2018 Domestic ā $ 228,092 ā $ 275,133 ā $ 279,175 International ā 11,733 ā 17,003 ā 19,441 Net sales ā $ 239,825 ā $ 292,136 ā $ 298,616 |
Schedule of timing of revenue recognition | ā ā ā ā ā ā ā ā ā ā ā (in thousands) 2020 2019 2018 Products transferred at a point in time ā $ 239,825 ā $ 292,136 ā $ 298,616 Products transferred over time ā ā ā ā ā ā Net sales ā $ 239,825 ā $ 292,136 ā $ 298,616 |
Schedule of contract balances | ā ā ā ā ā ā ā ā (in thousands) 2020 2019 Deferred revenue ā $ 1,245 ā $ 295 |
ACCOUNTS RECEIVABLE (Tables)
ACCOUNTS RECEIVABLE (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
ACCOUNTS RECEIVABLE | |
Schedule of accounts receivable | ā ā ā ā ā ā ā ā December 31, 2020 2019 (in thousands) ā ā Trade receivables ā $ 3,253 ā $ 2,319 Other ā 1,469 ā 4,308 Total ā 4,722 ā 6,627 Less: allowance for credit losses ā (16) ā (20) Net accounts receivable ā $ 4,706 ā $ 6,607 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
INVENTORIES | |
Schedule of inventories | ā ā ā ā ā ā ā ā December 31, ā 2020 2019 (in thousands) ā ā ā ā ā ā Raw materials ā $ 21,754 ā $ 24,993 Work in process ā 11,378 ā 7,731 Finished goods ā 9,178 ā 8,829 Total inventories ā $ 42,310 ā $ 41,553 |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
PROPERTY, PLANT AND EQUIPMENT | |
Schedule of property, plant and equipment | ā ā ā ā ā ā ā ā ā ā ā ā Estimated ā ā ā ā ā ā December 31, Useful Lives 2020 2019 (in thousands) ā ā ā ā ā ā Land N/A ā $ 878 ā $ 878 Buildings 7-40 ā 20,966 ā 20,552 Operating equipment and property 3-15 ā 12,923 ā 11,891 Furniture and fixtures 5-7 ā 2,560 ā 1,999 Vehicles 5-10 ā 7,677 ā 7,734 Gross property, plant and equipment ā ā 45,004 ā 43,054 Less: accumulated depreciation ā ā (30,066) ā (28,258) Net property, plant and equipment ā ā ā $ 14,938 ā $ 14,796 |
ACCRUED EXPENSES AND OTHER LI_2
ACCRUED EXPENSES AND OTHER LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
ACCRUED EXPENSES AND OTHER LIABILITIES | |
Schedule of accrued expenses and other liabilities | ā ā ā ā ā ā ā ā December 31, 2020 2019 (in thousands) ā ā Accrued payroll and related expenses ā $ 4,458 ā $ 3,021 Accrued sales incentives and discounts ā 3,292 ā 3,716 Accrued warranty costs ā 5,030 ā 5,410 Deferred revenue ā 1,245 ā 295 Other ā 1,558 ā 713 Total accrued expenses and other liabilities ā $ 15,583 ā $ 13,155 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
INCOME TAXES | |
Schedule of components of the provision for income taxes | ā ā ā ā ā ā ā ā ā ā ā Years ended December 31, 2020 2019 2018 (in thousands) ā ā ā Current provision: ā ā ā Federal ā $ 4,741 ā $ 6,637 ā $ 6,173 State ā 582 ā 202 ā 616 Deferred (benefit) provision: ā ā ā ā Federal ā (410) ā (715) ā 384 State ā 99 ā 95 ā (6) Total income tax provision ā $ 5,012 ā $ 6,219 ā $ 7,167 |
Schedule of reconciliation between the federal statutory rate and effective tax rate | ā ā ā ā ā ā ā ā ā Years ended December 31, 2020 2019 2018 Federal statutory rate 21.0 % 21.0 % 21.0 % State income taxes, net of federal benefit 1.4 1.0 1.5 Research and experimentation credit (1.5) (1.2) (0.8) Non-deductible expenses ā 0.1 ā (0.7) ā 0.4 ā Change in contingencies 0.1 (0.1) 0.4 Adjustments related to the Act ā ā (0.3) Adjustments related to vesting of restricted stock (1.5) (1.5) (1.8) Other 0.9 (0.5) (0.3) Effective tax rate 20.5 % 18.0 % 20.1 % |
Schedule of components of deferred tax assets and liabilities | ā ā ā ā ā ā ā ā December 31, 2020 2019 (in thousands) ā ā Deferred tax assets: ā ā Warranty costs ā $ 1,107 ā $ 1,190 Sales incentives and discounts ā 278 ā 404 Stock-based compensation ā 717 ā 696 Pension ā 2,365 ā 2,002 State NOLās ā ā 423 ā ā 484 State credits ā ā 1,818 ā ā 1,818 All others ā 635 ā 560 Valuation allowance ā (1,818) ā (1,818) Total deferred tax assets ā 5,525 ā 5,336 Deferred tax liabilities: ā ā Depreciation and amortization expense ā (965) ā (947) Basis differences in joint venture ā (485) ā (399) Net deferred tax assets ā $ 4,075 ā $ 3,990 |
Schedule of unrecognized tax benefits | ā ā ā ā ā ā ā ā ā 2020 2019 Balance at January 1 ā $ 358,000 ā $ 393,000 Additions (reductions) based on tax positions related to the current year ā 34,000 ā (28,000) Additions (reductions) for tax positions of prior years ā 9,000 ā (7,000) Balance at December 31 ā $ 401,000 ā $ 358,000 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
ACCUMULATED OTHER COMPREHENSIVE LOSS | |
Schedule of accumulated other comprehensive loss | ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Unrealized ā ā ā ā ā ā ā ā Gain (Loss) ā ā ā ā ā Pension ā on ā ā ā ā Adjustment Securities Total (in thousands) ā ā ā Balance at December 31, 2018 ā $ (2,178) ā $ 3 ā $ (2,175) Adoption of accounting standard (Note 1) ā ā (404) ā ā (10) ā ā (414) Before-tax amount ā (300) ā 13 ā (287) Tax benefit ā 66 ā (3) ā 63 Reclassification adjustment, net of taxes ā ā ā Amortization of net loss ā 68 ā ā ā 68 Net realized loss ā ā ā (3) ā (3) Total activity in 2019 ā (570) ā (3) ā (573) Balance at December 31, 2019 ā $ (2,748) ā $ ā ā $ (2,748) Before-tax amount ā 250 ā ā ā 250 Tax expense ā (30) ā ā ā (30) Reclassification adjustment, net of taxes ā ā ā ā Amortization of net loss ā 76 ā ā ā 76 Pension settlement loss ā 505 ā ā ā 505 Total activity in 2020 ā 801 ā ā ā 801 Balance at December 31, 2020 ā $ (1,947) ā $ ā ā $ (1,947) |
EMPLOYEE BENEFIT PLANS (Tables)
EMPLOYEE BENEFIT PLANS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
EMPLOYEE BENEFIT PLANS | |
Schedule of funded status of the Retirement Income Plan | ā ā ā ā ā ā ā ā December 31, 2020 2019 (in thousands) ā ā ACCUMULATED BENEFIT OBLIGATION, END OF YEAR ā $ 5,576 ā $ 6,433 ā ā ā ā ā ā ā CHANGE IN PROJECTED BENEFIT OBLIGATION: ā ā ā Benefit obligation at beginning of year ā $ 6,433 ā $ 5,833 Service cost ā ā ā ā Interest cost ā 230 ā 255 Actuarial loss ā 622 ā 570 Benefits paid ā (264) ā (225) Settlement ā ā (1,445) ā ā ā Projected benefit obligation at end of year ā $ 5,576 ā $ 6,433 CHANGE IN PLAN ASSETS: ā ā ā Fair value of plan assets at beginning of year ā $ 7,314 ā $ 6,802 Actual return on plan assets ā 1,196 ā 737 Employer contributions ā 550 ā ā Benefits paid ā (264) ā (225) Settlements ā ā (1,445) ā ā ā Fair value of plan assets at end of year ā $ 7,351 ā $ 7,314 Funded status at end of year ā $ 1,775 ā $ 881 ā ā ā ā ā ā ā ā December 31, 2020 2019 (in thousands) ā ā ā ā ā ā AMOUNTS RECOGNIZED IN THE CONSOLIDATED BALANCE SHEETS CONSIST OF: ā ā ā ā ā ā Noncurrent assets ā $ 1,775 ā $ 881 Current liabilities ā ā ā ā Noncurrent liabilities ā ā ā ā ā ā $ 1,775 ā $ 881 ā ā ā ā ā ā ā ā December 31, 2020 2019 (in thousands) ā ā AMOUNTS (PRE-TAX) RECOGNIZED IN ACCUMULATED OTHER COMPREHENSIVE LOSS CONSIST OF: ā ā Net loss ā $ 2,496 ā $ 3,524 Prior service cost (credit) ā ā ā ā Net transition obligation (asset) ā ā ā ā ā ā $ 2,496 ā $ 3,524 |
Schedule of amounts recorded in the consolidated balance sheet as pension liabilities | ā ā ā ā ā ā ā ā December 31, 2020 2019 (in thousands) ā ā SERP liability ā $ (12,524) ā $ (9,980) Funded status of Retirement Income Plan ā ā ā ā Pension liabilities ā $ (12,524) ā $ (9,980) |
Schedule of net periodic cost (benefit) | ā ā ā ā ā ā ā ā ā ā ā Years ended December 31, 2020 2019 2018 (in thousands) ā ā ā ā ā ā ā ā ā Service cost for benefits earned during the period ā $ ā ā $ ā ā $ ā Interest cost on projected benefit obligation ā 230 ā 255 ā 251 Expected return on plan assets ā (292) ā (468) ā (501) Amortization of net loss ā 98 ā 87 ā 81 Settlement loss ā ā 647 ā ā ā ā ā ā ā ā $ 683 ā $ (126) ā $ (169) |
Schedule of amounts recognized in other comprehensive income | ā ā ā ā ā ā ā ā ā ā ā (in thousands) 2020 2019 2018 Net loss (gain) ā $ (154) ā $ 300 ā $ 395 Amortization of net loss ā (98) ā (87) ā (81) Net transition obligation (asset) ā ā ā ā ā ā Settlement loss ā ā (647) ā ā ā ā ā ā Amount recognized in accumulated other comprehensive (loss) income ā $ (899) ā $ 213 ā $ 314 |
Schedule of weighted average assumptions | ā ā ā ā ā ā ā ā ā December 31, 2020 2019 2018 PROJECTED BENEFIT OBLIGATION: ā Discount rate 2.70 % 3.70 % 4.65 % Rate of compensation increase N/A N/A N/A NET BENEFIT COST: Discount rate 3.70 % 4.65 % 4.05 % Expected return on plan assets 4.00 % 7.00 % 7.00 % Rate of compensation increase N/A N/A N/A |
Schedule of allocation of plan assets | ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Percentage of ā Percentage of ā ā ā ā ā ā ā Plan Assets as of ā Plan Assets as of ā ā Target Allocation ā December 31, ā December 31, Asset Category for 2021 2020 2019 Cash and Cash Equivalents 0 % - 5 % 2.0 % 1.3 % Fixed Income Securities 15 % - 100 % 98.0 91.7 ā Investments measured at net asset value ā % ā 7.0 ā Total ā ā ā 100.0 % 100.0 % 100.0 % |
Schedule of plan assets using the fair value hierarchy | ā ā ā ā ā ā ā ā ā ā ā ā ā ā Investments (in thousands) ā ā Total Level 1 Level 2 Cash and Cash Equivalents ā (1) ā $ 138 ā $ 138 ā $ ā Fixed Income Securities ā (2) ā 7,213 ā ā ā 7,213 Total Assets in the Fair Value Hierarchy ā ā ā ā $ 7,351 ā $ 138 ā $ 7,213 Investments Measured at Net Asset Value ā ā ā ā ā ā ā Investments at Fair Value ā ā ā ā $ 7,351 ā ā ā Fair Value Hierarchy as of December 31, 2019: ā ā ā ā ā ā ā ā ā ā ā ā ā Investments (in thousands) ā ā Total Level 1 Level 2 Cash and Cash Equivalents ā (1) ā $ 92 ā $ 92 ā $ ā Fixed Income Securities ā (2) ā 6,708 ā ā ā 6,708 Total Assets in the Fair Value Hierarchy ā ā ā ā $ 6,800 ā $ 92 ā $ 6,708 Investments Measured at Net Asset Value ā ā ā ā 514 ā ā Investments at Fair Value ā ā ā ā $ 7,314 ā ā ā (1) Cash and cash equivalents, which are used to pay benefits and plan administrative expenses, are held in Rule 2a-7 money market funds. (2) Fixed income securities are primarily valued using a market approach with inputs that include broker quotes, benchmark yields, base spreads and reported trades. |
Schedule of future benefits payable for the Retirement Income Plan over the next ten years | ā ā ā ā ā (in thousands) ā 2021 ā $ 264 2022 ā 264 2023 ā 266 2024 ā 266 2025 ā 264 2026-2030 ā $ 1,384 |
Schedule of summary of the changes in non-vested restricted shares | ā ā ā ā ā ā ā ā ā ā ā Weighted Average ā ā ā ā Grant-Date Fair ā Shares Value Non-vested shares at January 1, 2020 815,540 ā $ 11.29 Granted 179,000 ā ā 15.00 Vested (310,520) ā ā 9.91 Forfeited (5,800) ā ā 13.09 Non-vested shares at December 31, 2020 678,220 ā $ 12.89 ā ā ā ā ā ā ā ā ā ā ā Weighted Average ā ā ā ā Grant-Date Fair ā Shares Value Non-vested shares at January 1, 2019 947,710 ā $ 9.41 Granted 141,600 ā ā 17.21 Vested (260,770) ā ā 7.65 Forfeited (13,000) ā ā 11.68 Non-vested shares at December 31, 2019 815,540 ā $ 11.29 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
LEASES | |
Schedule of operating leases assets and liabilities | ā ā ā ā ā ā ā ā ā ā ā ā ā ā December 31, ā Classification on Consolidated Balance Sheet 2020 2019 (in thousands) ā ā ā ā ā ā ā ā Assets: ā ā ā Operating lease right-of-use assets Other assets ā $ 124 ā $ 159 ā ā ā ā ā ā ā ā ā Liabilities: ā ā Current portion of operating lease liabilities Accrued expenses and other liabilities ā $ 52 ā $ 47 Long-term operating lease liabilities Other long-term liabilities ā 70 ā 110 Total lease liabilities ā $ 122 ā $ 157 |
Schedule of components of lease expense | ā ā ā ā ā ā ā ā Year ended December 31, 2020 2019 (in thousands) ā ā ā ā Operating lease cost ā $ 54 ā $ 52 Short-term lease cost ā 2 ā 3 Total lease cost ā $ 56 ā $ 55 |
Schedule of other information | ā ā ā ā ā ā ā ā ā As of December 31, 2020 2019 Cash paid for amounts included in the measurement of lease liabilities ā operating leases (in thousands) ā $ 49 ā $ 46 ā ROU assets obtained in exchange for operating lease liabilities (in thousands) ā $ 14 ā $ ā ā Weighted average remaining lease term ā operating leases (years) ā 2.5 ā 3.3 ā Weighted average discount rate ā operating leases ā 3.48 % 3.68 % |
Schedule of future minimum lease payments | ā ā ā ā ā ā ā ā As of December 31, ā 2020 2019 (in thousands) ā ā ā ā ā 2020 $ ā $ 52 2021 ā 55 ā 52 2022 ā 55 ā 52 2023 ā 13 ā 10 2024 ā 3 ā ā 2025 ā 1 ā ā Total lease payments ā 127 ā 166 Less: Amounts representing interest ā (5) ā (9) Present value of lease liabilities ā $ 122 ā $ 157 |
SIGNIFICANT ACCOUNTING POLICI_4
SIGNIFICANT ACCOUNTING POLICIES - Basis of Consolidation and Presentation (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020USD ($)segment | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Concentration Risk [Line Items] | |||
Number of reportable segments | segment | 1 | ||
Net sales to all dealers | $ 239,825 | $ 292,136 | $ 298,616 |
Net sales | Customer Concentration Risk | |||
Concentration Risk [Line Items] | |||
Concentration risk, customer | 0 | ||
Percent of net sales | 10 | ||
Net sales | International dealers | |||
Concentration Risk [Line Items] | |||
Net sales to all dealers | $ 11,800 | $ 17,000 | $ 19,400 |
SIGNIFICANT ACCOUNTING POLICI_5
SIGNIFICANT ACCOUNTING POLICIES - Common and Preferred Stock (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
SIGNIFICANT ACCOUNTING POLICIES | ||
Common stock, shares authorized | 74,000,000 | 74,000,000 |
Common stock, par value (in dollar per share) | $ 0.10 | $ 0.10 |
Votes per share | one vote | |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, par value (in dollar per share) | $ 0.10 | $ 0.10 |
SIGNIFICANT ACCOUNTING POLICI_6
SIGNIFICANT ACCOUNTING POLICIES - Dividends, Advertising and Marketable securities (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Accounting policies: | |||
Prepaid expenses related to unamortized product brochure costs | $ 194,000 | $ 269,000 | |
Net realized (losses) gains on marketable securities | 4,000 | $ (81,000) | |
Net realized gain | 4,000 | (81,000) | |
Selling, general and administrative expenses | |||
Accounting policies: | |||
Advertising expenses | $ 2,013,000 | $ 2,543,000 | $ 2,468,000 |
Dividend declared | |||
Accounting policies: | |||
Amount of dividend payable in cash per share | $ 0.10 | ||
Dividends payable, date declared | Jan. 26, 2021 | ||
Dividend payable, date to be payable | Mar. 10, 2021 | ||
Dividends payable, date of record | Feb. 10, 2021 |
SIGNIFICANT ACCOUNTING POLICI_7
SIGNIFICANT ACCOUNTING POLICIES - Warranty Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Warranty accruals: | ||
Balance at beginning of year | $ 5,410 | $ 5,607 |
Less: Payments made during the year | (3,225) | (4,004) |
Add: Warranty provision for the current year | 3,095 | 3,788 |
Changes to warranty provision for prior years | (250) | 19 |
Balance at end of year | $ 5,030 | $ 5,410 |
Warranty Costs | ||
Period of limited warranty on structural deck | 5 years | |
Period of transferable limited warranty to original owner | 1 year | |
Period of transferable hull warranty available to first subsequent owner | 5 years | |
Length of period after original retail purchase the 5-year transferable hull warranty terminates | 5 years | |
Minimum | ||
Warranty Costs | ||
Period of non-transferable warranty on additional items | 1 year | |
Maximum | ||
Warranty Costs | ||
Period of non-transferable warranty on additional items | 5 years |
SIGNIFICANT ACCOUNTING POLICI_8
SIGNIFICANT ACCOUNTING POLICIES - Reconciliation of weighted average shares outstanding (Details) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Earnings per Share | |||
Net income available for stockholders | $ 19,444 | $ 28,239 | $ 28,488 |
Less: Adjustments for earnings attributable to participating securities | (416) | (669) | (762) |
Net income used in calculating earnings per share | $ 19,028 | $ 27,570 | $ 27,726 |
Weighted average shares outstanding (including participating securities) | 33,926 | 34,061 | 34,529 |
Adjustment for participating securities | (734) | (831) | (959) |
Shares used in calculating diluted earnings per share | 33,192 | 33,230 | 33,570 |
SIGNIFICANT ACCOUNTING POLICI_9
SIGNIFICANT ACCOUNTING POLICIES - Additional Information (Details) | 12 Months Ended | ||
Dec. 31, 2020USD ($)item | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Product Information [Line Items] | |||
Statutory federal income tax rate | 21.00% | 21.00% | 21.00% |
Retirement age of eligible employees for future retirement benefit | 65 years | ||
Goodwill and Other Intangibles | |||
Goodwill | $ 3,308,000 | $ 3,308,000 | |
Impairment of goodwill or trade names | $ 0 | 0 | $ 0 |
Earliest tax year | |||
Product Information [Line Items] | |||
Statutory federal income tax rate | 35.00% | ||
Latest tax year | |||
Product Information [Line Items] | |||
Statutory federal income tax rate | 21.00% | ||
Minimum | |||
Product Information [Line Items] | |||
Retirement age of eligible employees for future retirement benefit | 59 years 6 months | ||
Selling, general and administrative expenses | |||
Product Information [Line Items] | |||
Research and development costs | $ 751,000 | $ 730,000 | $ 822,000 |
Accounts Receivable | |||
Product Information [Line Items] | |||
Percentage of domestic shipments made pursuant to floor plan financing | 64.00% | ||
Supplier Concentration Risk | |||
Product Information [Line Items] | |||
Number of supplier | item | 4 | ||
Number of types of engines | item | 3 |
NET SALES - Payment Terms (Deta
NET SALES - Payment Terms (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Minimum | |
Net sales: | |
Revenue satisfaction period | 7 days |
Maximum | |
Net sales: | |
Revenue satisfaction period | 10 days |
NET SALES - Disaggregate sales
NET SALES - Disaggregate sales by major source (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disaggregation of revenue: | |||
Net sales | $ 239,825 | $ 292,136 | $ 298,616 |
Boats and accessories | |||
Disaggregation of revenue: | |||
Net sales | 235,097 | 287,837 | 294,537 |
Parts | |||
Disaggregation of revenue: | |||
Net sales | $ 4,728 | $ 4,299 | $ 4,079 |
NET SALES - Disaggregate revenu
NET SALES - Disaggregate revenue by location (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disaggregation of revenue: | |||
Net sales | $ 239,825 | $ 292,136 | $ 298,616 |
Domestic | |||
Disaggregation of revenue: | |||
Net sales | 228,092 | 275,133 | 279,175 |
International | |||
Disaggregation of revenue: | |||
Net sales | $ 11,733 | $ 17,003 | $ 19,441 |
NET SALES - Timing of revenue r
NET SALES - Timing of revenue recognition (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disaggregation of revenue: | |||
Net sales | $ 239,825 | $ 292,136 | $ 298,616 |
Products transferred at point in time | |||
Disaggregation of revenue: | |||
Net sales | 239,825 | 292,136 | 298,616 |
Products transferred over time | |||
Disaggregation of revenue: | |||
Net sales | $ 0 | $ 0 | $ 0 |
NET SALES - Deferred revenue (D
NET SALES - Deferred revenue (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Accrued expenses and other liabilities | ||
Disaggregation of revenue: | ||
Deferred revenue | $ 1,245 | $ 295 |
ACCOUNTS RECEIVABLE (Details)
ACCOUNTS RECEIVABLE (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Accounts receivable | ||
Trade receivables | $ 3,253 | $ 2,319 |
Other | 1,469 | 4,308 |
Total | 4,722 | 6,627 |
Less: allowance for credit losses | (16) | (20) |
Net accounts receivable | $ 4,706 | $ 6,607 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
INVENTORIES | ||
Raw materials | $ 21,754 | $ 24,993 |
Work in process | 11,378 | 7,731 |
Finished goods | 9,178 | 8,829 |
Total inventories | $ 42,310 | $ 41,553 |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
PROPERTY, PLANT AND EQUIPMENT | ||
Gross property, plant and equipment | $ 45,004 | $ 43,054 |
Less: accumulated depreciation | (30,066) | (28,258) |
Net property, plant and equipment | 14,938 | 14,796 |
Land | ||
PROPERTY, PLANT AND EQUIPMENT | ||
Gross property, plant and equipment | 878 | 878 |
Buildings | ||
PROPERTY, PLANT AND EQUIPMENT | ||
Gross property, plant and equipment | $ 20,966 | 20,552 |
Buildings | Minimum | ||
PROPERTY, PLANT AND EQUIPMENT | ||
Estimated Useful Lives | 7 years | |
Buildings | Maximum | ||
PROPERTY, PLANT AND EQUIPMENT | ||
Estimated Useful Lives | 40 years | |
Operating equipment and property | ||
PROPERTY, PLANT AND EQUIPMENT | ||
Gross property, plant and equipment | $ 12,923 | 11,891 |
Operating equipment and property | Minimum | ||
PROPERTY, PLANT AND EQUIPMENT | ||
Estimated Useful Lives | 3 years | |
Operating equipment and property | Maximum | ||
PROPERTY, PLANT AND EQUIPMENT | ||
Estimated Useful Lives | 15 years | |
Furniture and fixtures | ||
PROPERTY, PLANT AND EQUIPMENT | ||
Gross property, plant and equipment | $ 2,560 | 1,999 |
Furniture and fixtures | Minimum | ||
PROPERTY, PLANT AND EQUIPMENT | ||
Estimated Useful Lives | 5 years | |
Furniture and fixtures | Maximum | ||
PROPERTY, PLANT AND EQUIPMENT | ||
Estimated Useful Lives | 7 years | |
Vehicles | ||
PROPERTY, PLANT AND EQUIPMENT | ||
Gross property, plant and equipment | $ 7,677 | $ 7,734 |
Vehicles | Minimum | ||
PROPERTY, PLANT AND EQUIPMENT | ||
Estimated Useful Lives | 5 years | |
Vehicles | Maximum | ||
PROPERTY, PLANT AND EQUIPMENT | ||
Estimated Useful Lives | 10 years |
PROPERTY, PLANT AND EQUIPMENT -
PROPERTY, PLANT AND EQUIPMENT - Depreciation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
PROPERTY, PLANT AND EQUIPMENT | |||
Depreciation expense | $ 1,954 | $ 2,090 | $ 1,820 |
ACCRUED EXPENSES AND OTHER LI_3
ACCRUED EXPENSES AND OTHER LIABILITIES (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
ACCRUED EXPENSES AND OTHER LIABILITIES | ||
Accrued payroll and related expenses | $ 4,458 | $ 3,021 |
Accrued sales incentives and discounts | 3,292 | 3,716 |
Accrued warranty costs | 5,030 | 5,410 |
Deferred revenue | 1,245 | 295 |
Other | 1,558 | 713 |
Total accrued expenses and other liabilities | $ 15,583 | $ 13,155 |
INCOME TAXES - Components of pr
INCOME TAXES - Components of provision for income taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Current provision: | |||
Federal | $ 4,741 | $ 6,637 | $ 6,173 |
State | 582 | 202 | 616 |
Deferred (benefit) provision: | |||
Federal | (410) | (715) | 384 |
State | 99 | 95 | (6) |
Total income tax provision | $ 5,012 | $ 6,219 | $ 7,167 |
INCOME TAXES - Reconciliation b
INCOME TAXES - Reconciliation between the federal statutory rate and effective tax rate (Details) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
INCOME TAXES | |||
Federal statutory rate | 21.00% | 21.00% | 21.00% |
State income taxes, net of federal benefit | 1.40% | 1.00% | 1.50% |
Research and experimentation credit | (1.50%) | (1.20%) | (0.80%) |
Non-deductible expenses | 0.10% | (0.70%) | 0.40% |
Change in contingencies | 0.10% | (0.10%) | 0.40% |
Adjustments related to the Act | (0.30%) | ||
Adjustments related to vesting of restricted stock | (1.50%) | (1.50%) | (1.80%) |
Other | 0.90% | (0.50%) | (0.30%) |
Effective tax rate | 20.50% | 18.00% | 20.10% |
INCOME TAXES - Significant comp
INCOME TAXES - Significant components of deferred tax assets and liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred tax assets: | ||
Warranty costs | $ 1,107 | $ 1,190 |
Sales incentives and discounts | 278 | 404 |
Stock-based compensation | 717 | 696 |
Pension | 2,365 | 2,002 |
State NOL's | 423 | 484 |
State credits | 1,818 | 1,818 |
All others | 635 | 560 |
Valuation allowance | (1,818) | (1,818) |
Total deferred tax assets | 5,525 | 5,336 |
Deferred tax liabilities: | ||
Depreciation and amortization expense | (965) | (947) |
Basis differences in joint venture | (485) | (399) |
Net deferred tax assets | $ 4,075 | $ 3,990 |
INCOME TAXES - Reconciliation o
INCOME TAXES - Reconciliation of beginning and ending amount of unrecognized tax benefits (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Balance at January 1 | $ 358,000 | $ 393,000 |
Additions (reductions) based on tax positions related to the current year | 34,000 | (28,000) |
Additions (reductions) for tax positions of prior years | 9,000 | (7,000) |
Balance at December 31 | $ 401,000 | $ 358,000 |
INCOME TAXES - Additional infor
INCOME TAXES - Additional information (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income taxes | ||||
Statutory federal income tax rate | 21.00% | 21.00% | 21.00% | |
Discrete income tax provision adjustment | $ 100,000 | |||
Estimated tax benefit associated with FDII | $ 103,000 | |||
Total net income tax payments | $ 4,099,000 | $ 7,330,000 | $ 6,290,000 | |
Latest tax year | ||||
Income taxes | ||||
Statutory federal income tax rate | 21.00% | |||
Earliest tax year | ||||
Income taxes | ||||
Statutory federal income tax rate | 35.00% | |||
State income taxes | ||||
Income taxes | ||||
Net operating loss carry forwards | $ 10,600,000 | |||
Other State Credits | ||||
Income taxes | ||||
Net operating loss carry forwards | $ 2,300,000 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE LOSS (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
AOCI Roll Forward | ||
Balance | $ (2,748) | $ (2,175) |
Change during period: | ||
Adoption of accounting standard (Note 1) | (414) | |
Before-tax amount | 250 | (287) |
Tax benefit (expense) | (30) | 63 |
Reclassification adjustment, net of taxes | ||
Amortization of net loss | 76 | 68 |
Pension settlement loss | 505 | |
Net realized gain (loss) | (3) | |
Total activity for the period | 801 | (573) |
Balance | (1,947) | (2,748) |
Pension Adjustment | ||
AOCI Roll Forward | ||
Balance | (2,748) | (2,178) |
Change during period: | ||
Adoption of accounting standard (Note 1) | (404) | |
Before-tax amount | 250 | (300) |
Tax benefit (expense) | (30) | 66 |
Reclassification adjustment, net of taxes | ||
Amortization of net loss | 76 | 68 |
Pension settlement loss | 505 | |
Total activity for the period | 801 | (570) |
Balance | $ (1,947) | (2,748) |
Unrealized Gain (Loss) on Securities | ||
AOCI Roll Forward | ||
Balance | 3 | |
Change during period: | ||
Adoption of accounting standard (Note 1) | (10) | |
Before-tax amount | 13 | |
Tax benefit (expense) | (3) | |
Reclassification adjustment, net of taxes | ||
Net realized gain (loss) | (3) | |
Total activity for the period | $ (3) |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Available-for-sale securities | ||
Available-for-sale securities | $ 0 | $ 0 |
Fair value transfers between levels | ||
Transfers from Level 1 to Level 2 | 0 | |
Transfers from Level 2 to Level 1 | 0 | |
Transfers into Level 3 | 0 | |
Transfers out of Level 3 | 0 | |
Fair value on a recurring basis | ||
Available-for-sale securities | ||
Investments measured at Net Asset Value - Trading securities | $ 10,622,000 | $ 6,716,000 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Dealer Floor Plan Financing (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
COMMITMENTS AND CONTINGENCIES | ||
Repurchases of inventory | $ 3.4 | |
Redistributed amounts | 3.1 | |
Net realizable value of repurchased inventory | 0.3 | |
Costs associated with repurchases | $ 0.1 | |
Total purchase obligation | $ 13.2 | |
Floor plan lender one | ||
COMMITMENTS AND CONTINGENCIES | ||
Liability related to repurchase remains outstanding | $ 0 | |
Repurchase limit in percentage of amount of average net receivables | 16.00% | |
Total purchase obligation | $ 9.7 | |
Additional floor plan lenders | ||
COMMITMENTS AND CONTINGENCIES | ||
Total purchase obligation | $ 3.5 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES - Income taxes and employee agreements (Details) | 12 Months Ended | ||
Dec. 31, 2020USD ($)employee | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
COMMITMENTS AND CONTINGENCIES. | |||
Long-term deferred tax liabilities | $ 401,000 | $ 358,000 | |
Selling, general and administrative expenses | $ 29,244,000 | 31,259,000 | $ 30,936,000 |
Employment agreement | |||
COMMITMENTS AND CONTINGENCIES. | |||
Number Of Employees | employee | 1 | ||
Monthly payment (in percent of profit) | 10.00% | ||
Selling, general and administrative expenses | $ 3,586,000 | $ 4,487,000 | $ 4,630,000 |
EMPLOYEE BENEFIT PLANS - SERP (
EMPLOYEE BENEFIT PLANS - SERP (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Employee Benefit Plans | |||
Settlement loss | $ (647,000) | ||
Selling, general and administrative expenses | |||
Employee Benefit Plans | |||
Settlement loss | 600,000 | ||
SERP | |||
Employee Benefit Plans | |||
Variable life insurance policies investment amount | 8,600,000 | $ 7,200,000 | |
Fair value of plan assets | 10,622,000 | 6,716,000 | |
Trading (losses) gains related to the SERP assets | $ 906,000 | $ 1,197,000 | $ (544,000) |
EMPLOYEE BENEFIT PLANS - Funded
EMPLOYEE BENEFIT PLANS - Funded status of Retirement Income Plan (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
CHANGE IN PLAN ASSETS: | |||
Funded status at end of year | $ 0 | $ 0 | |
Retirement Income Plan | |||
EMPLOYEE BENEFIT PLANS | |||
ACCUMULATED BENEFIT OBLIGATION, END OF YEAR | 5,576,000 | 6,433,000 | |
CHANGE IN PROJECTED BENEFIT OBLIGATION: | |||
Benefit obligation at beginning of year | 6,433,000 | 5,833,000 | |
Service cost | 0 | 0 | $ 0 |
Interest cost | 230,000 | 255,000 | 251,000 |
Actuarial loss | 622,000 | 570,000 | |
Benefits paid | (264,000) | (225,000) | |
Settlements | (1,445,000) | 0 | |
Projected benefit obligation at end of year | 5,576,000 | 6,433,000 | 5,833,000 |
CHANGE IN PLAN ASSETS: | |||
Fair value of plan assets at beginning of year | 7,314,000 | 6,802,000 | |
Actual return on plan assets | 1,196,000 | 737,000 | |
Employer contributions | 550,000 | 0 | 770,000 |
Benefits paid | (264,000) | (225,000) | |
Settlements | (1,445,000) | 0 | |
Fair value of plan assets at end of year | 7,351,000 | 7,314,000 | $ 6,802,000 |
Funded status at end of year | 1,775,000 | 881,000 | |
AMOUNTS RECOGNIZED IN THE CONSOLIDATED BALANCE SHEETS CONSIST OF: | |||
Noncurrent assets | 1,775,000 | 881,000 | |
Current liabilities | 0 | 0 | |
Noncurrent liabilities | 0 | 0 | |
Amounts recognized in balance sheet | 1,775,000 | 881,000 | |
AMOUNTS (PRE-TAX) RECOGNIZED IN ACCUMULATED OTHER COMPREHENSIVE LOSS CONSIST OF: | |||
Net loss | 2,496,000 | 3,524,000 | |
Prior service cost (credit) | 0 | 0 | |
Net transition obligation (asset) | 0 | 0 | |
Amounts (pre-tax) recognized in accumulated other comprehensive loss | $ 2,496,000 | $ 3,524,000 |
EMPLOYEE BENEFIT PLANS - Amount
EMPLOYEE BENEFIT PLANS - Amounts recorded in consolidated balance sheet as pension liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
EMPLOYEE BENEFIT PLANS | ||
SERP liability | $ (12,524) | $ (9,980) |
Funded status of Retirement Income Plan | 0 | 0 |
Pension liabilities | $ (12,524) | $ (9,980) |
EMPLOYEE BENEFIT PLANS - Compon
EMPLOYEE BENEFIT PLANS - Components of net periodic cost (benefit) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
EMPLOYEE BENEFIT PLANS | |||
Pension settlement loss | $ 647,000 | ||
Retirement Income Plan | |||
EMPLOYEE BENEFIT PLANS | |||
Service cost for benefits earned during the period | 0 | $ 0 | $ 0 |
Interest cost on projected benefit obligation | 230,000 | 255,000 | 251,000 |
Expected return on plan assets | (292,000) | (468,000) | (501,000) |
Amortization of net losses | 98,000 | 87,000 | 81,000 |
Pension settlement loss | 647,000 | 0 | 0 |
Net periodic cost (benefit) | 683,000 | (126,000) | (169,000) |
Employer contributions | $ 550,000 | $ 0 | $ 770,000 |
EMPLOYEE BENEFIT PLANS - Pre-ta
EMPLOYEE BENEFIT PLANS - Pre-tax amounts recognized in other comprehensive income (Details) - Retirement Income Plan - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
EMPLOYEE BENEFIT PLANS | |||
Net loss (gain) | $ (154,000) | $ 300,000 | $ 395,000 |
Amortization of net loss | (98,000) | (87,000) | (81,000) |
Net transition obligation (asset) | 0 | 0 | 0 |
Settlement loss | (647,000) | 0 | 0 |
Amount recognized in accumulated other comprehensive (loss) income | $ (899,000) | $ 213,000 | $ 314,000 |
EMPLOYEE BENEFIT PLANS - Weight
EMPLOYEE BENEFIT PLANS - Weighted average assumptions used to determine the projected benefit obligation and net benefit cost (Details) - Retirement Income Plan | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
PROJECTED BENEFIT OBLIGATION: | |||
Discount rate | 2.70% | 3.70% | 4.65% |
Rate of compensation increase | |||
NET BENEFIT COST: | |||
Discount rate | 3.70% | 4.65% | 4.05% |
Expected return on plan assets | 4.00% | 7.00% | 7.00% |
Rate of compensation increase |
EMPLOYEE BENEFIT PLANS - Weig_2
EMPLOYEE BENEFIT PLANS - Weighted average asset allocation by asset category along with target allocation (Details) - Retirement Income Plan | Dec. 31, 2020 | Dec. 31, 2019 |
EMPLOYEE BENEFIT PLANS | ||
Percentage of Plan Assets | 100.00% | 100.00% |
Target Allocation for 2021 | 100.00% | |
Cash and Cash Equivalents | ||
EMPLOYEE BENEFIT PLANS | ||
Percentage of Plan Assets | 2.00% | 1.30% |
Fixed Income Securities | ||
EMPLOYEE BENEFIT PLANS | ||
Percentage of Plan Assets | 98.00% | 91.70% |
Investments measured at net asset value | ||
EMPLOYEE BENEFIT PLANS | ||
Percentage of Plan Assets | 0.00% | 7.00% |
Minimum | Cash and Cash Equivalents | ||
EMPLOYEE BENEFIT PLANS | ||
Target Allocation for 2021 | 0.00% | |
Minimum | Fixed Income Securities | ||
EMPLOYEE BENEFIT PLANS | ||
Target Allocation for 2021 | 15.00% | |
Maximum | Cash and Cash Equivalents | ||
EMPLOYEE BENEFIT PLANS | ||
Target Allocation for 2021 | 5.00% | |
Maximum | Fixed Income Securities | ||
EMPLOYEE BENEFIT PLANS | ||
Target Allocation for 2021 | 100.00% |
EMPLOYEE BENEFIT PLANS - Plan a
EMPLOYEE BENEFIT PLANS - Plan assets using fair value hierarchy (Details) - Retirement Income Plan - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
EMPLOYEE BENEFIT PLANS | ||
Investments Measured at Net Asset Value | $ 514 | |
Investments at Fair Value | $ 7,351 | 7,314 |
Cash and Cash Equivalents | ||
EMPLOYEE BENEFIT PLANS | ||
Total Assets in the Fair Value Hierarchy | 138 | 92 |
Cash and Cash Equivalents | Quoted prices in active markets for identical assets (Level 1) | ||
EMPLOYEE BENEFIT PLANS | ||
Total Assets in the Fair Value Hierarchy | 138 | 92 |
Fixed Income Securities | ||
EMPLOYEE BENEFIT PLANS | ||
Total Assets in the Fair Value Hierarchy | 7,213 | 6,708 |
Fixed Income Securities | Significant other observable inputs (Level 2) | ||
EMPLOYEE BENEFIT PLANS | ||
Total Assets in the Fair Value Hierarchy | 7,213 | 6,708 |
Investment | ||
EMPLOYEE BENEFIT PLANS | ||
Total Assets in the Fair Value Hierarchy | 7,351 | 6,800 |
Investment | Quoted prices in active markets for identical assets (Level 1) | ||
EMPLOYEE BENEFIT PLANS | ||
Total Assets in the Fair Value Hierarchy | 138 | 92 |
Investment | Significant other observable inputs (Level 2) | ||
EMPLOYEE BENEFIT PLANS | ||
Total Assets in the Fair Value Hierarchy | $ 7,213 | $ 6,708 |
EMPLOYEE BENEFIT PLANS - Estima
EMPLOYEE BENEFIT PLANS - Estimates that future benefits payable for Retirement Income Plan (Details) - Retirement Income Plan $ in Thousands | Dec. 31, 2020USD ($) |
EMPLOYEE BENEFIT PLANS | |
2021 | $ 264 |
2022 | 264 |
2023 | 266 |
2024 | 266 |
2025 | 264 |
2026-2030 | $ 1,384 |
EMPLOYEE BENEFIT PLANS - 401(k)
EMPLOYEE BENEFIT PLANS - 401(k) Plan and Stock Incentive Plan (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
EMPLOYEE BENEFIT PLANS | |||
Maximum percentage of annual contribution per employee | 25.00% | ||
Percentage of employer matching contribution | 100.00% | 50.00% | |
Threshold limit percentage of employee compensation | 6.00% | ||
Maximum period of vesting in contribution of employees | 3 years | ||
Employer matching contribution | $ 603,000 | $ 796,000 | $ 319,000 |
Stock Incentive Plans Member | |||
EMPLOYEE BENEFIT PLANS | |||
Stock authorized (in shares) | 3,000,000 | ||
Expiration term of share-based compensation plans | 10 years | ||
Number of shares available for grants | 1,569,700 | ||
Pre-tax stock-based employee compensation expense | $ 3,102,000 | 2,123,000 | 2,089,000 |
After tax stock-based employee compensation expense | $ 2,420,000 | $ 1,656,000 | $ 1,629,000 |
EMPLOYEE BENEFIT PLANS - Stock
EMPLOYEE BENEFIT PLANS - Stock Options and Restricted Stock (Details) - shares | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Minimum threshold limit percentage of incentive stock options grants to owners | 10.00% | |||
Percentage of fair market value of the common stock | 110.00% | |||
Stock based compensation award, vesting period | 5 years | |||
Expiry period of the stock | 10 years | |||
Expiry period of the stock of the majority owners | 5 years | |||
Fair value of stock options method used | Black-Scholes option pricing model | |||
Options exercised in period | 0 | 0 | 0 | 0 |
Stock options outstanding | 0 | |||
Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock based compensation award, vesting period | 6 years | |||
Stock based compensation award, vesting percentage | 20.00% |
EMPLOYEE BENEFIT PLANS - Summar
EMPLOYEE BENEFIT PLANS - Summary of changes in non-vested restricted shares (Details) - Restricted Stock - $ / shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Shares | |||
Non-vested shares at beginning | 815,540 | 947,710 | |
Granted | 179,000 | 141,600 | |
Vested | (310,520) | (260,770) | |
Forfeited | (5,800) | (13,000) | |
Non-vested shares at ending | 678,220 | 815,540 | 947,710 |
Weighted Average Grant-Date Fair Value | |||
Non-vested shares at beginning | $ 11.29 | $ 9.41 | |
Granted | 15 | 17.21 | $ 13.97 |
Vested | 9.91 | 7.65 | |
Forfeited | 13.09 | 11.68 | |
Non-vested shares at ending | $ 12.89 | $ 11.29 | $ 9.41 |
EMPLOYEE BENEFIT PLANS - Additi
EMPLOYEE BENEFIT PLANS - Additional information (Details) - Restricted Stock - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average grant date fair value (in dollars per share) | $ 15 | $ 17.21 | $ 13.97 |
Total fair value of shares vested | $ 4,431,000 | $ 3,818,000 | $ 4,289,000 |
Tax benefits for compensation expense for restricted stock | 363,000 | $ 517,000 | |
Unrecognized compensation cost related to non-vested restricted shares | $ 6,970,000 | ||
Unrecognized compensation cost related to non-vested restricted shares recognized period | 3 years 1 month 6 days |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Jan. 31, 2016 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
RPC | 255 RC, LLC | ||||
Related Party Transaction [Line Items] | ||||
Joint venture ownership interest percentage | 50.00% | |||
Investment in joint venture | $ 2,554,000 | |||
Operating lease agreement term | 5 years | |||
Rent and allocable fixed cost for corporate aircraft | $ 160,000 | $ 159,000 | $ 159,000 | |
Payable due to related party | 1,200,000 | 1,000,000 | ||
Undistributed earnings represented in retained earnings | 462,000 | |||
RPC | Transition Support Services Agreement | ||||
Related Party Transaction [Line Items] | ||||
Aggregate service charges paid | 846,000 | 865,000 | $ 873,000 | |
Receivable (payable) due from (to) related party | $ (49,000) | $ (56,000) | ||
Chairman of Board and Director | ||||
Related Party Transaction [Line Items] | ||||
Voting power (in percent) | 50.00% |
LEASES - Assets and liabilities
LEASES - Assets and liabilities related to operating leases recorded on balance sheet (Details) - ASU No. 2016-02, Leases (Topic 842) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Liabilities: | ||
Total lease liabilities | $ 122 | $ 157 |
Other assets | ||
Assets: | ||
Operating lease right-of-use assets | 124 | 159 |
Accrued expenses and other liabilities | ||
Liabilities: | ||
Current portion of operating lease liabilities | 52 | 47 |
Other long-term liabilities | ||
Liabilities: | ||
Long-term operating lease liabilities | $ 70 | $ 110 |
LEASES - Components of lease ex
LEASES - Components of lease expense (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Leases [Line Items] | |||
Total rent expense charged to operations | $ 191,000 | ||
ASU No. 2016-02, Leases (Topic 842) | Selling, general and administrative expenses | |||
Leases [Line Items] | |||
Operating lease cost | $ 54,000 | $ 52,000 | |
Short-term lease cost | 2,000 | 3,000 | |
Total lease cost | $ 56,000 | $ 55,000 |
LEASES - Other information rela
LEASES - Other information related to operating leases (Details) - ASU No. 2016-02, Leases (Topic 842) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Line Items] | ||
Cash paid for amounts included in the measurement of lease liabilities | $ 49 | $ 46 |
ROU assets obtained in exchange for operating lease liabilities | $ 14 | $ 0 |
Weighted average remaining lease term | 2 years 5 months 30 days | 3 years 3 months 18 days |
Weighted average discount rate | 3.48% | 3.68% |
LEASES - Future minimum lease p
LEASES - Future minimum lease payments (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | |
Maturity of lease liabilities | |||
Initial lease term (in months) | 36 months | ||
2021 | $ 235,500 | ||
2022 | 58,875 | ||
Total received leases | 294,375 | ||
Rental income | 236,000 | ||
ASU No. 2016-02, Leases (Topic 842) | |||
Maturity of lease liabilities | |||
2020 | 0 | $ 52,000 | |
2021 | 55,000 | 52,000 | |
2022 | 55,000 | 52,000 | |
2023 | 13,000 | 10,000 | |
2024 | 3,000 | 0 | |
2025 | 1,000 | 0 | |
Total lease payments | 127,000 | 166,000 | |
Less: Amounts representing interest | (5,000) | (9,000) | |
Present value of lease liabilities | $ 122,000 | $ 157,000 |
SCHEDULE II-VALUATION AND QUA_2
SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Allowance for doubtful accounts | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | $ 20 | $ 25 | $ 25 |
Charged to Costs and Expenses | 8 | 14 | 0 |
Net (Write-Offs)/ Recoveries | (12) | (19) | 0 |
Balance at End of Period | 16 | 20 | 25 |
Deferred tax asset valuation allowance | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | 1,818 | 2,794 | 5,447 |
Charged to Costs and Expenses | 0 | 0 | 0 |
Net (Write-Offs)/ Recoveries | 0 | (976) | (2,653) |
Balance at End of Period | $ 1,818 | $ 1,818 | $ 2,794 |