Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2019 | Nov. 06, 2019 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Entity Registrant Name | Commercial Vehicle Group, Inc. | |
Entity Central Index Key | 0001290900 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Shell Company | false | |
Entity Current Reporting Status | Yes | |
Entity Common Stock, Shares Outstanding | 31,339,181 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Current Assets: | ||
Cash | $ 38,703 | $ 70,913 |
Accounts receivable, net of allowances of $5,627 and $5,139, respectively | 153,190 | 134,624 |
Inventories | 90,186 | 92,359 |
Other current assets | 24,496 | 16,828 |
Total current assets | 306,575 | 314,724 |
Property, plant and equipment, net of accumulated depreciation of $151,620 and $143,781, respectively | 73,059 | 65,099 |
Operating lease right-of-use assets, net | 23,333 | 0 |
Goodwill | 25,188 | 7,576 |
Intangible assets, net of accumulated amortization of $10,600 and $9,568, respectively | 28,841 | 12,800 |
Deferred income taxes | 12,061 | 15,348 |
Other assets, net | 2,394 | 2,583 |
Total assets | 471,451 | 418,130 |
Current Liabilities: | ||
Accounts payable | 88,835 | 86,645 |
Current operating lease liabilities | 5,485 | 0 |
Accrued liabilities and other | 38,885 | 36,969 |
Current portion of long-term debt | 3,335 | 9,102 |
Total current liabilities | 136,540 | 132,716 |
Long-term debt | 154,950 | 154,656 |
Operating lease liabilities | 19,192 | 0 |
Pension and other post-retirement benefits | 13,417 | 12,065 |
Other long-term liabilities | 7,607 | 3,655 |
Total liabilities | 331,706 | 303,092 |
Stockholders’ Equity: | ||
Preferred stock, $0.01 par value (5,000,000 shares authorized; no shares issued and outstanding) | 0 | 0 |
Common stock, $0.01 par value (60,000,000 shares authorized; 30,581,274 and 30,512,843 shares issued and outstanding, respectively) | 319 | 318 |
Treasury stock, at cost: 1,334,251 shares | (10,245) | (10,245) |
Additional paid-in capital | 245,207 | 243,007 |
Retained deficit | (43,816) | (70,571) |
Accumulated other comprehensive loss | (51,720) | (47,471) |
Total stockholders’ equity | 139,745 | 115,038 |
Total liabilities and stockholders’ equity | $ 471,451 | $ 418,130 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowances | $ 5,627 | $ 5,139 |
Property, plant and equipment, accumulated depreciation | 151,620 | 143,781 |
Accumulated amortization on intangible assets | $ 10,600 | $ 9,568 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 60,000,000 | 60,000,000 |
Common stock, shares issued (in shares) | 30,581,274 | 30,512,843 |
Common stock, shares outstanding (in shares) | 30,581,274 | 30,512,843 |
Treasury stock, shares (in shares) | 1,334,251 | 1,334,251 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income Statement [Abstract] | ||||
Revenues | $ 225,399 | $ 225,010 | $ 711,753 | $ 674,135 |
Cost of Revenues | 194,195 | 192,833 | 612,207 | 575,550 |
Gross Profit | 31,204 | 32,177 | 99,546 | 98,585 |
Selling, General and Administrative Expenses | 17,531 | 15,613 | 48,976 | 45,177 |
Amortization Expense | 437 | 321 | 1,080 | 980 |
Operating Income | 13,236 | 16,243 | 49,490 | 52,428 |
Interest and Other Expense | 3,800 | 3,442 | 15,687 | 8,404 |
Income Before Provision for Income Taxes | 9,436 | 12,801 | 33,803 | 44,024 |
Provision for Income Taxes | 916 | 218 | 6,976 | 8,393 |
Net Income | $ 8,520 | $ 12,583 | $ 26,827 | $ 35,631 |
Earnings per Common Share: | ||||
Basic (in dollars per share) | $ 0.28 | $ 0.42 | $ 0.88 | $ 1.18 |
Diluted (in dollars per share) | $ 0.28 | $ 0.41 | $ 0.87 | $ 1.17 |
Weighted Average Shares Outstanding: | ||||
Basic (in shares) | 30,581 | 30,219 | 30,547 | 30,219 |
Diluted (in shares) | 30,852 | 30,638 | 30,829 | 30,575 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 8,520 | $ 12,583 | $ 26,827 | $ 35,631 |
Other comprehensive income (loss): | ||||
Foreign currency exchange translation adjustments | (3,388) | (1,529) | (3,048) | (5,363) |
Minimum pension liability, net of tax | (2,095) | (1,060) | (1,008) | (1,992) |
Derivative Instrument | (515) | 0 | (193) | 0 |
Other comprehensive income (loss) | (5,998) | (2,589) | (4,249) | (7,355) |
Comprehensive income | $ 2,522 | $ 9,994 | $ 22,578 | $ 28,276 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Treasury Stock | Additional Paid In Capital | Retained Deficit | Accumulated Other Comp. Loss |
Beginning balance (in shares) at Dec. 31, 2017 | 30,219,000 | |||||
Beginning balance at Dec. 31, 2017 | $ 74,742 | $ 304 | $ (9,114) | $ 239,870 | $ (115,083) | $ (41,235) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Share-based compensation expense | 673 | 673 | 0 | |||
Total comprehensive income | 10,985 | 9,853 | 1,132 | |||
Ending balance (in shares) at Mar. 31, 2018 | 30,219,000 | |||||
Ending balance at Mar. 31, 2018 | 86,400 | $ 304 | (9,114) | 240,543 | (105,230) | (40,103) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Share-based compensation expense | 844 | 844 | ||||
Total comprehensive income | 7,297 | 13,195 | (5,898) | |||
Ending balance (in shares) at Jun. 30, 2018 | 30,219,000 | |||||
Ending balance at Jun. 30, 2018 | 94,541 | $ 304 | (9,114) | 241,387 | (92,035) | (46,001) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Share-based compensation expense | 780 | 780 | ||||
Total comprehensive income | 9,994 | 12,583 | (2,589) | |||
Ending balance (in shares) at Sep. 30, 2018 | 30,219,000 | |||||
Ending balance at Sep. 30, 2018 | $ 105,315 | $ 304 | (9,114) | 242,167 | (79,452) | (48,590) |
Beginning balance (in shares) at Dec. 31, 2018 | 30,512,843 | 30,513,000 | ||||
Beginning balance at Dec. 31, 2018 | $ 115,038 | $ 318 | (10,245) | 243,007 | (70,571) | (47,471) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Share-based compensation expense | 761 | 761 | ||||
Total comprehensive income | 10,924 | 11,130 | (206) | |||
Ending balance (in shares) at Mar. 31, 2019 | 30,513,000 | |||||
Ending balance at Mar. 31, 2019 | $ 126,651 | $ 318 | (10,245) | 243,768 | (59,513) | (47,677) |
Beginning balance (in shares) at Dec. 31, 2018 | 30,512,843 | 30,513,000 | ||||
Beginning balance at Dec. 31, 2018 | $ 115,038 | $ 318 | (10,245) | 243,007 | (70,571) | (47,471) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Share-based compensation expense (in shares) | 68,000 | |||||
Share-based compensation expense | 2,201 | $ 1 | 2,200 | |||
Total comprehensive income | $ 22,578 | 26,827 | (4,249) | |||
Ending balance (in shares) at Sep. 30, 2019 | 30,581,274 | 30,581,000 | ||||
Ending balance at Sep. 30, 2019 | $ 139,745 | $ 319 | (10,245) | 245,207 | (43,816) | (51,720) |
Beginning balance (in shares) at Mar. 31, 2019 | 30,513,000 | |||||
Beginning balance at Mar. 31, 2019 | 126,651 | $ 318 | (10,245) | 243,768 | (59,513) | (47,677) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Share-based compensation expense (in shares) | 68,000 | |||||
Share-based compensation expense | 719 | $ 1 | 718 | |||
Total comprehensive income | 9,132 | 7,177 | 1,955 | |||
Ending balance (in shares) at Jun. 30, 2019 | 30,581,000 | |||||
Ending balance at Jun. 30, 2019 | 136,502 | $ 319 | (10,245) | 244,486 | (52,336) | (45,722) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Share-based compensation expense | 721 | 721 | ||||
Total comprehensive income | $ 2,522 | 8,520 | (5,998) | |||
Ending balance (in shares) at Sep. 30, 2019 | 30,581,274 | 30,581,000 | ||||
Ending balance at Sep. 30, 2019 | $ 139,745 | $ 319 | $ (10,245) | $ 245,207 | $ (43,816) | $ (51,720) |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Cash Flows from Operating Activities: | ||
Net income | $ 26,827 | $ 35,631 |
Adjustments to reconcile net income to cash flows from operating activities: | ||
Depreciation and amortization | 10,976 | 11,787 |
Allowance for accounts receivable | 5,000 | 6,448 |
Non-cash amortization of debt financing costs | 1,030 | 1,054 |
Shared-based compensation expense | 2,200 | 2,297 |
Deferred income taxes | 2,903 | 9,042 |
Non-cash loss / (gain) on derivative contracts | 2,092 | (2,842) |
Change in other operating items: | ||
Accounts receivable | (24,765) | (51,076) |
Inventories | 1,191 | 4,507 |
Prepaid expenses | (7,458) | (4,462) |
Accounts payable | 3,272 | 6,653 |
Other operating activities, net | 5,767 | 1,000 |
Net cash provided by operating activities | 29,035 | 20,039 |
Cash Flows from Investing Activities: | ||
Purchases of property, plant and equipment | (19,270) | (9,823) |
Proceeds from disposal/sale of property, plant and equipment | 20 | 18 |
Payments for acquisitions | (34,000) | 0 |
Net cash used in investing activities | (53,250) | (9,805) |
Cash Flows from Financing Activities: | ||
Borrowings on Revolving Credit Facility | 8,500 | 80,500 |
Repayment of Revolving Credit Facility | (8,500) | (80,500) |
Repayment of Term Loan | (6,338) | (3,281) |
Other financing activities | (381) | 0 |
Net cash used in financing activities | (6,719) | (3,281) |
Effect of Foreign Currency Exchange Rate Changes on Cash | (1,276) | (1,672) |
Net (Decrease) Increase in Cash | (32,210) | 5,281 |
Cash: | ||
Beginning of period | 70,913 | 52,244 |
End of period | 38,703 | 57,525 |
Supplemental Cash Flow Information: | ||
Cash paid for interest | 10,212 | 10,421 |
Cash paid for income taxes, net | 5,530 | 2,081 |
Unpaid purchases of property and equipment included in accounts payable | $ 155 | $ 132 |
Description of Business and Bas
Description of Business and Basis of Presentation | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Description of Business and Basis of Presentation | Description of Business and Basis of Presentation Commercial Vehicle Group, Inc. (through its subsidiaries) is a leading supplier of electrical wire harnesses, seating systems, and a full range of other cab related products for the global commercial vehicle markets, including medium- and heavy-duty trucks ("MD/HD Truck") and medium- and heavy-construction vehicles. We also supply electrical wire harnesses, control panels, electro-mechanical and cable assemblies, seating systems and other products to automotive, military, bus, agriculture, transportation, mining, industrial and off-road recreational markets. References herein to the "Company", "CVG", "we", "our", or "us" refer to Commercial Vehicle Group, Inc. and its subsidiaries. We are differentiated from automotive industry suppliers by our ability to manufacture low volume, customized products on a sequenced basis to meet the requirements of our customers. We believe our products are used by a majority of the North American MD/HD Truck and many medium- and heavy-duty construction vehicle original equipment manufacturers (“OEMs”), and to a lesser extent other makers of industrial equipment. We have manufacturing operations in the United States, Mexico, China, United Kingdom, Czech Republic, Ukraine, Thailand, India and Australia. Our products are primarily sold in North America, Europe, and the Asia-Pacific region. We have prepared the unaudited condensed consolidated financial statements included herein pursuant to the rules and regulations of the United States Securities and Exchange Commission (“SEC”). The information furnished in the unaudited condensed consolidated financial statements includes normal recurring adjustments and reflects all adjustments, which are, in the opinion of management, necessary for a fair presentation of the results of operations and statements of financial position for the interim periods presented. Certain information and footnote disclosures normally included in the consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been condensed or omitted pursuant to such rules and regulations. We believe that the disclosures are adequate to make the information presented not misleading when read in conjunction with our fiscal 2018 consolidated financial statements and the notes thereto included in Part II, Item 8 of our Annual Report on Form 10-K ("2018 Form 10-K") as filed with the SEC on March 11, 2019. Unless otherwise indicated, all amounts are in thousands, except share and per share amounts. Certain reclassifications to the Condensed Consolidated Statement of Operations have been made pertaining to prior year non-service pension cost (benefit) to conform to current year presentation. S EGMENTS In the quarter ended December 31, 2018, we completed a strategic reorganization of our operations into two business segments, Electrical Systems and Global Seating. The reorganization allows the Company to better focus its business along product lines, as opposed to end markets, which the Company believes will enhance the effectiveness of seeking growth opportunities and enhancing shareholder value. As a result of the strategic reorganization, we restated prior period segment information to conform to the current period segment presentation. Operating segments are defined as components of an enterprise that are evaluated regularly by the Company’s chief operating decision maker (“CODM”), which is our President and Chief Executive Officer. Each of the segments consist of a number of manufacturing facilities. Certain of our facilities manufacture and sell products through both of our segments. Each manufacturing facility that sells products through both segments is reflected in the financial results of the segment that has the greatest amount of revenues from that manufacturing facility. Our segments are more specifically described below. The Electrical Systems Segment manufactures and sells the following products: • Wire harness and panel assemblies primarily for the construction, agricultural, industrial, automotive, truck, mining and military industries in North America, Europe and Asia-Pacific; • Trim primarily for the North America MD/HD Truck market; • Mirrors, wipers and controls primarily for the truck, bus, agriculture, construction, rail and military markets in North America and Europe; • Cab structures for the North American MD/HD Truck market; • Electro-mechanical and cable assemblies for the industrial, transportation and military markets; and • Aftermarket components in North America. The Global Seating Segment manufactures and sells Seats as follows: • Seats primarily to the MD/HD Truck, construction, agriculture and mining markets in North America, Asia-Pacific and Europe; • Office seating in Europe and Asia-Pacific; and • Aftermarket seats and components in North America, Europe and Asia-Pacific. Corporate expenses consist of certain overhead and shared costs that are not directly attributable to the operations of a segment. For purposes of business segment performance measurement, some of these costs that are for the benefit of the operations are allocated based on a combination of methodologies. The costs that are not allocated to a segment are considered stewardship costs and remain at corporate in our segment reporting. |
Recently Issued Accounting Pron
Recently Issued Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Changes and Error Corrections [Abstract] | |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In July 2019, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2019-07, "Codification Updates to SEC Sections". ASU No. 2019-07 clarifies or improves the disclosure and presentation requirements of a variety of codification topics by aligning them with the SEC's regulations, thereby eliminating redundancies. This ASU is effective upon issuance and did not have a significant impact on the Company's consolidated financial statements and related disclosures. In June 2016, the FASB issued ASU No. 2016-13, "Financial Instruments - Credit Losses (Topic 326)". The ASU requires financial assets measured at amortized cost basis to be presented at the net amount expected to be collected. The FASB subsequently issued ASU No. 2018-19, "Codification Improvements to Topic 326: Financial Instruments - Credit Losses", in November 2018 which provided further guidance on assessment of receivables for operating leases. ASU No. 2019-04, "Codification Improvements to Topic 326, Topic 815 and Topic 825" and ASU No. 2019-05, "Targeted Transition Relief", that were issued in April and May of 2019 do not materially impact the Company. The Company anticipates ASU 2016-13 and ASU 2018-19 will apply to its trade receivables and will not have a material impact on the reported value of such receivables. We expect to implement ASU No. 2016-13 and 2018-19 on the effective date of January 1, 2020. Accounting Pronouncements Implemented in the Nine Months Ended September 30, 2019 In June 2018, the FASB issued ASU No. 2018-07, "Compensation - Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting". The ASU changed the measurement date for determining the fair value of share awards to nonemployees to the grant date and requires the consideration of the probability of satisfying performance obligations in assessing the awards. The ASU did not have a material impact on our recognition of share-based payments for nonemployees. Lease Accounting In February 2016, the FASB issued ASU No. 2016-02, "Leases (Topic 842)" followed by ASU No. 2018-11, "Leases (Topic 842): Targeted Improvements", issued in July 2018. The ASU is intended to increase transparency and comparability among companies by recognizing lease assets and liabilities and disclosing key information about leasing arrangements. ASU 2016-02 was adopted by the Company on January 1, 2019. In accordance with Topic 842, we elected not to recognize lease assets and lease liabilities for leases with a term of twelve months or less and elected to not separate lease and non-lease components. We elected the transition method option under ASU 2018-11 with the package of practical expedients that permits the Company to: (a) not reassess whether expired or existing contracts contain leases, (b) not reassess lease classification for existing or expired leases and (c) not consider whether previously capitalized initial direct costs would be appropriate under the new standard. We recorded a right-of-use asset of $21.2 million and a lease liability of $22.2 million upon adoption. We also elected the option to apply the new leasing standard on the date of adoption and recognize a cumulative-effect transition adjustment to the opening balance of retained earnings in the period of adoption resulting in a cumulative effect as of January 1, 2019 of $0.1 million . Refer to footnote 12 for further details. |
Business Combinations
Business Combinations | 9 Months Ended |
Sep. 30, 2019 | |
Business Combinations [Abstract] | |
Business Combinations | Business Combinations On September 17, 2019, the Company entered into and closed on an Asset Purchase Agreement (the “Agreement”) with First Source Electronics, LLC (“FSE”), Kevin Popielarczyk and Richard Vuoto (collectively, “Principals”) and the Company’s wholly-owned subsidiary, CVG FSE, LLC (“CVG FSE”). The Agreement provided for the acquisition (the "FSE Acquisition") by CVG FSE of substantially all of the assets and certain liabilities of FSE in exchange for a cash purchase price of $34 million , subject to a net working capital adjustment, plus a right to earn up to $10.75 million in milestone payments. The purchase was funded through domestic cash on hand and $2 million of borrowings under our revolving credit facility. FSE is in the business of manufacturing, distributing, marketing and selling cable and electro-mechanical assemblies, control panels and other business and consumer electronics products and services. FSE improves our ability to participate in the progression of digitalization, connectivity and associated power and data applications. Furthermore, this strategic acquisition complements our high-complexity, low-to-medium volume electrical business, and provides us an entry into the warehouse automation market, while also providing us with the opportunity to leverage our global footprint and to increase cross selling opportunities. The milestone payments are payable based on achieving certain earnings before interest, taxes, depreciation and amortization ("EBITDA") thresholds over the periods from (a) September 18, 2019 through September 17, 2020, (b) September 18, 2019 through March 17, 2021, (c) September 18, 2019 through September 17, 2022 and (d) March 18, 2021 through September 17, 2022. The payment amount will be determined on a sliding scale for reaching between 90% and 100% of EBITDA. The fair value for the milestone payments is based on a Monte Carlo simulation utilizing forecasted EBITDA through September 17, 2022. The estimate was recorded within other long-term liabilities in the Condensed Consolidated Balance Sheet as of September 31, 2019. The total undiscounted milestone payments is estimated at $5.6 million and our discounted calculation is $4.7 million as of September 30, 2019. The Agreement contains customary indemnification provisions and provided for the establishment of an escrow fund of $3 million of the purchase price to secure indemnification claims by CVG FSE for an 18-month period. The Company is a party to the Agreement solely as a guarantor of CVG FSE’s payment obligations. The operating results of FSE, since the date of acquisition, have been included in our consolidated financial statements. From the date of the FSE Acquisition through September 30, 2019, we recorded revenues of approximately $2.5 million and consolidated net income was not materially impacted for the period. Acquisition related expenses for FSE of approximately $0.9 million were incurred for the three and nine months ended September 30, 2019 and have been recorded as selling, general and administrative expenses in our consolidated statements of income. The FSE Acquisition was accounted for under the acquisition method of accounting. Under acquisition accounting, the acquired tangible and intangible assets and liabilities of FSE have been recorded at their respective fair values. Due to the proximity of the date of acquisition to the date of issuance of the condensed consolidated financial statements, the Company’s purchase price allocation as of September 30, 2019 reflects various provisional estimates that were based on the information that was available as of the acquisition date and the subsequent filing date of this Form 10-Q. The Company believes that information provides a reasonable basis for estimating the fair values of assets acquired and liabilities assumed, however the determination of those fair values is not yet finalized. The purchase price associated with the FSE Acquisition exceeded the preliminary fair value of the net assets acquired by approximately $17.7 million , which is deductible for tax purposes. The excess purchase price over net assets acquired was as follows: Initial cash paid, net of working capital adjustment $ 34,000 Contingent consideration at fair value 4,700 Total consideration $ 38,700 Net assets at fair value 21,025 Excess of total consideration over net assets acquired $ 17,675 The preliminary fair value of the assets acquired and liabilities assumed allocation was as follows: Accounts receivable $ 6,567 Inventories 3,140 Prepaid and other current assets 353 Property, plant and equipment 503 Other long-term assets 1,650 Definite-lived intangible assets 17,190 Goodwill 17,675 Accounts payable and accrued liabilities (7,204 ) Other long-term liabilities (1,174 ) Total consideration $ 38,700 The following unaudited pro forma information for the three and nine months ended September 30, 2019 and 2018 presents the result of operations as if the FSE Acquisition had taken place at the beginning of the comparable prior annual reporting period. The pro forma results reflect estimates and assumptions and are not necessarily indicative of the financial position or result of operations had the acquisitions taken place at the beginning of the period. The Company adjusted historical results for assumed intangible amortization expense consistent with future years and assumed tax impact of 25%. In addition, the pro forma results are not necessarily indicative of the future financial or operating results: Three months ended September 30, Nine months ended September 30, (unaudited) 2019 2018 2019 2018 Revenue $ 235,470 $ 232,964 $ 747,280 $ 699,245 Net income $ 8,761 $ 12,818 $ 29,068 $ 36,899 Earnings per share attributable to common stockholders: Basic $ 0.29 $ 0.42 $ 0.95 $ 1.22 Diluted $ 0.28 $ 0.42 $ 0.94 $ 1.21 |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition Contractual Arrangements Revenue is measured based on terms and considerations specified in contracts with customers. We have long-term contracts with some customers that govern overall terms and conditions accompanied by individual purchase orders that define specific order quantities and/or price. We have many customers that operate under terms outlined in purchase orders without a long-term contract. We generally do not have customer contracts with minimum order quantity requirements. Amount and Timing of Revenue Recognition The transaction price is based on the consideration to which the Company will be entitled in exchange for transferring control of a product to the customer. This is defined in a purchase order or in a separate pricing arrangement and represents the stand-alone selling price. Our payment terms vary by the type and location of our customer and the products offered. None of the Company's contracts as of September 30, 2019 contained a significant financing component. We typically do not have multiple performance obligations requiring us to allocate a transaction price. We recognize revenue at the point in time when we satisfy a performance obligation by transferring control of a product to a customer, usually at a designated shipping point and in accordance with customer specifications. We make estimates for potential customer returns or adjustments based on historical experience, which reduce revenues. Other Matters Shipping and handling costs billed to customers are recorded in revenues and costs associated with outbound freight are generally accounted for as a fulfillment cost and are included in cost of revenues. We generally do not provide for extended warranties or material customer incentives. Our customers typically do not have a general right of return for our products. We had outstanding customer accounts receivable, net of allowances, of $153.2 million as of September 30, 2019 and $134.6 million as of December 31, 2018 . We generally do not have other assets or liabilities associated with customer contracts. In general, we do not make significant judgments or have variable consideration that impact our recognition of revenue. Our products include electrical wire harnesses and panel assemblies; trim systems and components ("Trim"); cab structures and sleeper boxes; mirrors, wipers and controls; and seats and seating systems ("Seats"). We sell these products into multiple geographic regions including North America, Europe and Asia-Pacific and to multiple customer end markets including MD/HD Truck OEMs, Bus OEMs, Construction OEMs, the aftermarket and other markets. The nature, timing and uncertainty of our recognition of revenue and associated cash flows across the varying product lines, geographic regions and customer end markets are substantially consistent. Refer to footnote 16 for revenue disclosures by reportable segments. |
Fair Value Measurement
Fair Value Measurement | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | Fair Value Measurement Fair value is the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is estimated by applying the following hierarchy, which prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement: Level 1 - Unadjusted quoted prices in active markets for identical assets and liabilities. Level 2 - Observable inputs other than those included in Level 1. For example, quoted prices for similar assets or liabilities in active markets or quoted prices for identical assets or liabilities in inactive markets. Level 3 - Significant unobservable inputs reflecting management’s own assumptions about the inputs used in pricing the asset or liability. Our financial instruments consisted of cash, accounts receivable, accounts payable, accrued liabilities and our revolving credit facility. The carrying value of these instruments approximates fair value as a result of the short duration of such instruments or due to the variability of the interest cost associated with such instruments. The contingent consideration associated with the FSE Acquisition, as discussed in footnote 3, is classified as Level 3. The fair value for the milestone payments is based on a Monte Carlo simulation utilizing forecasted EBITDA through September 17, 2022. The initial estimate of $4.7 million was recorded within other long-term liabilities in the Condensed Consolidated Balance Sheet as of September 30, 2019. Foreign Currency Forward Exchange Contracts. Our derivative assets and liabilities represent foreign exchange contracts that are measured at fair value using observable market inputs such as forward rates, interest rates, our own credit risk and counterparty credit risk. Based on the utilization of these inputs, the derivative assets and liabilities are classified as Level 2. To manage our risk for transactions denominated in Mexican Pesos, we have entered into forward exchange contracts that are designated as cash flow hedge instruments, which are recorded in the Condensed Consolidated Balance Sheets at fair value. The gains and losses as a result of the changes in fair value of the hedge contracts is deferred in accumulated other comprehensive loss and recognized as an adjustment to Cost of Revenues in the period the related hedge transactions are recognized. Refer to footnote 17 for additional disclosures. Interest Rate Swap Agreement. To manage our exposure to variable interest rates, we have entered into interest rate swap agreements in which the Company agrees to exchange, at specified intervals, the difference between fixed and variable interest amounts calculated by reference to an agreed-upon notional principal amount. These swaps are designed to mitigate changes in the interest rate of a portion of the outstanding borrowings. The Company entered into a series of interest rate swaps to initially cover $80 million of its outstanding debt under the senior secured term loan facility. The Company expects these derivatives to remain effective during the remaining term of the swaps and will record the impact in interest and other expense in the Condensed Consolidated Statements of Income. Refer to footnote 17 for additional disclosures. The fair values of our derivative assets and liabilities are categorized as follows: September 30, 2019 December 31, 2018 Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Derivative assets Foreign exchange contract 1 $ 303 $ — $ 303 $ — $ 496 $ — $ 496 $ — Interest rate swap agreement 2 $ 353 $ — $ 353 $ — $ 1,131 $ — $ 1,131 $ — Derivative liabilities Interest rate swap agreement 2 $ 1,318 $ — $ 1,318 $ — $ — $ — $ — $ — Derivative equity Foreign exchange contract 3 $ 303 $ — $ 303 $ — $ 496 $ — $ 496 $ — 1 Presented in the Condensed Consolidated Balance Sheets in other current assets and based on observable market transactions of spot and forward rates. 2 Presented in the Condensed Consolidated Balance Sheets in accrued liabilities in the amount of $1.0 million and based on observable market transactions and forward rates. 3 Presented in the Consolidated Balance Sheets in accumulated other comprehensive income and based on observable market transactions of spot and forward rates. The fair value of long-term debt obligations is based on a fair value model utilizing observable inputs. Based on these inputs, our long-term debt is classified as Level 2. The carrying amounts and fair values of our long-term debt obligations are as follows: September 30, 2019 December 31, 2018 Carrying Amount Fair Value Carrying Amount Fair Value Term loan and security agreement 1 $ 158,285 $ 158,285 $ 163,758 $ 161,759 1 Presented in the Condensed Consolidated Balance Sheets as the current portion of long-term debt of $3.3 million and long-term debt of $155.0 million as of September 30, 2019 , and current portion of long-term debt of $9.1 million and long-term debt of $154.7 million as of December 31, 2018 . There are no fair value measurements of our long-lived assets and definite-lived intangible assets measured on a non-recurring basis, except for definite-lived intangibles acquired as a part of the FSE Acquisition discussed in footnote 3, as of September 30, 2019 and December 31, 2018 . |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Sep. 30, 2019 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders’ Equity Common Stock — Our authorized capital stock consists of 60,000,000 shares of common stock with a par value of $0.01 per share; of which, 30,581,274 and 30,512,843 shares were issued and outstanding as of September 30, 2019 and as of December 31, 2018 , respectively. Preferred Stock — Our authorized capital stock also consists of 5,000,000 shares of preferred stock with a par value of $0.01 per share; no preferred shares were outstanding as of September 30, 2019 and December 31, 2018 . Earnings Per Share — Basic earnings per share is determined by dividing net income by the weighted average number of common shares outstanding during the period. Diluted earnings per share presented is determined by dividing net income by the weighted average number of common shares and potential common shares outstanding during the period as determined by the Treasury Stock Method. Potential common shares are included in the diluted earnings per share calculation when dilutive. Diluted earnings per share for the three and nine months ended September 30, 2019 and 2018 includes the effects of potential common shares issuable when dilutive, and is as follows: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Net income $ 8,520 $ 12,583 $ 26,827 $ 35,631 Weighted average number of common shares outstanding ('000s) 30,581 30,219 30,547 30,219 Dilutive effect of restricted stock grants after application of the Treasury Stock Method 271 419 282 356 Dilutive shares outstanding ('000s) 30,852 30,638 30,829 30,575 Basic earnings per share $ 0.28 $ 0.42 $ 0.88 $ 1.18 Diluted earnings per share $ 0.28 $ 0.41 $ 0.87 $ 1.17 There were no outstanding restricted shares awarded that were excluded from the calculation of diluted earnings per share for the three months ended September 30, 2019 and 2018. There were 17,712 outstanding restricted shares awarded that were excluded from the calculation of diluted earnings per share for the nine months ended September 30, 2019 and no outstanding restricted shares awarded that were excluded from the calculation of diluted earnings per share for the nine months ended September 30, 2018 . Dividends — We have not declared or paid any cash dividends in the past. The terms of our debt and credit facilities (as described in footnote 14) restrict the payment or distribution of our cash or other assets, including cash dividend payments. The changes in stockholder's equity are as follows: Nine Months Ended September 30, 2019 Common Stock Treasury Stock Additional Paid In Capital Retained Deficit Accumulated Other Comp. Loss Total CVG Stockholders’ Equity Shares ('000s) Amount Balance - December 31, 2018 30,513 $ 318 $ (10,245 ) $ 243,007 $ (70,571 ) $ (47,471 ) $ 115,038 Share-based compensation expense — — — 761 — — 761 Cumulative effect of adoption of Topic 842 — — — — (72 ) — (72 ) Total comprehensive income — — — — 11,130 (206 ) 10,924 Balance - March 31, 2019 30,513 $ 318 $ (10,245 ) $ 243,768 $ (59,513 ) $ (47,677 ) $ 126,651 Share-based compensation expense 68 1 — 718 — — 719 Total comprehensive income — — — — 7,177 1,955 9,132 Balance - June 30, 2019 30,581 $ 319 $ (10,245 ) $ 244,486 $ (52,336 ) $ (45,722 ) $ 136,502 Share-based compensation expense — — — 721 — — 721 Total comprehensive income — — — — 8,520 (5,998 ) 2,522 Balance - September 30, 2019 30,581 $ 319 $ (10,245 ) $ 245,207 $ (43,816 ) $ (51,720 ) $ 139,745 Nine Months Ended September 30, 2018 Common Stock Treasury Stock Additional Paid In Capital Retained Deficit Accumulated Other Comp. Loss Total CVG Stockholders’ Equity Shares ('000s) Amount Balance - December 31, 2017 30,219 $ 304 $ (9,114 ) $ 239,870 $ (115,083 ) $ (41,235 ) $ 74,742 Share-based compensation expense — — — 673 — — 673 Total comprehensive income — — — — 9,853 1,132 10,985 Balance - March 31, 2018 30,219 $ 304 $ (9,114 ) $ 240,543 $ (105,230 ) $ (40,103 ) $ 86,400 Share-based compensation expense — — — 844 — — 844 Total comprehensive income — $ — $ — $ — $ 13,195 $ (5,898 ) $ 7,297 Balance - June 30, 2018 30,219 $ 304 $ (9,114 ) $ 241,387 $ (92,035 ) $ (46,001 ) $ 94,541 Share-based compensation expense — $ — $ — $ 780 $ — $ — $ 780 Total comprehensive income — — — — 12,583 (2,589 ) 9,994 Balance - September 30, 2018 30,219 $ 304 $ (9,114 ) $ 242,167 $ (79,452 ) $ (48,590 ) $ 105,315 |
Share-Based Compensation
Share-Based Compensation | 9 Months Ended |
Sep. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Share-Based Compensation | Share-Based Compensation The Company's outstanding share-based compensation is comprised solely of restricted stock awards. Restricted Stock Awards –- Restricted stock awards are a grant of shares of common stock that may not be sold, encumbered or disposed of and that may be forfeited in the event of certain terminations of employment or in the case of the Board of Directors, a separation for cause, prior to the end of a restricted period set by the Compensation Committee of the Board of Directors. A participant granted restricted stock generally has all of the rights of a stockholder, unless the Compensation Committee determines otherwise. The following table summarizes information about outstanding restricted stock grants as of September 30, 2019 : Grant Shares ('000) Vesting Schedule Unearned Compensation Remaining Periods (in months) October 2016 411 3 equal annual installments commencing on October 20, 2017 $ 51.2 1 July 2017 6 3 equal annual installments commencing on October 20, 2017 $ 1.3 1 October 2017 303 3 equal annual installments commencing on October 20, 2018 $ 953.4 13 October 2018 382 3 equal annual installments commencing on October 20, 2019 $ 1,733.3 25 May 2019 71 Shares granted to independent board members that fully vest as of May 16, 2020 $ 315.0 7 We have elected to report forfeitures as they occur as opposed to estimating future forfeitures in our share-based compensation expense. The following table summarizes information about the non-vested restricted stock grants for the nine months ended September 30, 2019 and 2018 : Nine months ended September 30, 2019 2018 Shares Weighted- Shares Weighted- Nonvested at December 31 760 $ 7.56 787 $ 6.84 Granted 75 7.60 64 8.41 Vested (68 ) 8.38 — — Forfeited (21 ) 7.48 (16 ) 7.12 Nonvested at September 30 746 $ 7.49 835 $ 6.96 |
Performance Awards
Performance Awards | 9 Months Ended |
Sep. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Performance Awards | Performance Awards Awards, defined as cash, shares or other awards, may be granted to employees under the Amended and Restated Commercial Vehicle Group, Inc. 2014 Equity Incentive Plan (the “2014 EIP”). The cash award is earned and payable based upon the Company’s relative Total Shareholder Return in terms of ranking as compared to the Peer Group over a three -year period (the “Performance Period”). Total Shareholder Return is determined by the percentage change in value (positive or negative) over the applicable measurement period as measured by dividing (A) the sum of (i) the cumulative value of dividends and other distributions paid on the Common Stock for the applicable measurement period, and (ii) the difference (positive or negative) between each such company’s starting stock price and ending stock price, by (B) the starting stock price. The award is payable at the end of the Performance Period in cash only if the employee is employed through the end of the Performance Period. If the employee is not employed during the entire Performance Period, the award is forfeited. These grants are accounted for as cash settlement awards for which the fair value of the award fluctuates based on the change in Total Shareholder Return in relation to the Peer Group. The following table summarizes performance awards granted in the form of cash awards under the 2014 EIP in November 2018 , 2017 and 2016 : Grant Date Grant Amount Adjustments Forfeitures Adjusted Award Value September 30, 2019 Vesting Schedule Remaining Periods (in Months) to Vesting November 2016 $ 1,434 $ — $ (88 ) $ 1,346 November 2019 1 November 2017 1,584 (26 ) (53 ) 1,505 November 2020 13 November 2018 1,590 (49 ) (55 ) 1,486 November 2021 25 $ 4,608 $ (75 ) $ (196 ) $ 4,337 Compensation expense of $ 0.4 million and compensation benefit of $ 1.0 million was recognized for the three months ended September 30, 2019 and 2018 , respectively. Compensation expense of $ 1.1 million and $1.6 million was recognized for the nine months ended September 30, 2019 and 2018 , respectively. Unrecognized compensation expense was $1.6 million as of September 30, 2019 and 2018 . |
Accounts Receivable
Accounts Receivable | 9 Months Ended |
Sep. 30, 2019 | |
Receivables [Abstract] | |
Accounts Receivable | Accounts Receivable Trade accounts receivable are stated at current value less allowances, which approximates fair value. We review our receivables on an ongoing basis to ensure that they are properly valued and collectible. We record estimates of returns or allowances resulting from quality, delivery, discounts or other issues affecting the value of receivables. This amount is estimated based on historical trends and current market conditions, with the offset to revenues. The allowance for doubtful accounts is used to record the estimated risk of loss related to our customers’ inability to pay. This allowance is maintained at a level that we consider appropriate based on factors that affect collectability, such as the financial health of our customers, historical trends of charge-offs and recoveries and current economic market conditions. As we monitor our receivables, we identify customers that may have payment problems, and we adjust the allowance accordingly, with the offset to selling, general and administrative expense. Account balances are charged off against the allowance when recovery is considered remote. |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories are valued at the lower of first-in, first-out cost or net realizable value. Cost includes applicable material, labor and overhead. Inventories consisted of the following: September 30, 2019 December 31, 2018 Raw materials $ 64,344 $ 66,965 Work in process 12,916 12,333 Finished goods 12,926 13,061 $ 90,186 $ 92,359 Inventory quantities on-hand are regularly reviewed and, when necessary, provisions for excess and obsolete inventory are recorded based primarily on our estimated production requirements, taking into consideration expected market volumes and future potential use. Excess and obsolete provisions may vary by product depending upon future potential use of the product. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 9 Months Ended |
Sep. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill represents the excess of acquisition purchase price over the fair value of net assets acquired. We review goodwill for impairment annually, initially utilizing a qualitative assessment in the second fiscal quarter and whenever events or changes in circumstances indicate it is more likely than not that the carrying value may not be recoverable. As noted in footnote 3, the Company completed the FSE Acquisition in September 2019 resulting in additional goodwill of $17.7 million . Goodwill of $5.1 million is attributable to the Global Seating Segment and $20.1 million to the Electrical Systems Segment. In conducting the qualitative assessment, we consider relevant events and circumstances that affect the fair value or carrying amount of the reporting unit. Such events and circumstances could include macroeconomic conditions, industry and market considerations, overall financial performance, entity and reporting unit specific events, cost factors and capital market pricing. We consider the extent to which each of the adverse events and circumstances identified affect the comparison of the reporting unit’s fair value with its carrying amount. We place more weight on the events and circumstances that most affect the reporting unit’s fair value or the carrying amount of its net assets. These factors are all considered by management in reaching its conclusion about whether to perform the first step of the impairment test. No impairment was recorded as a result of our second quarter 2019 assessment. The changes in the carrying amounts of goodwill for the nine months ended September 30, 2019 and the year ended December 31, 2018 are as follows: September 30, 2019 December 31, 2018 Balance - Beginning $ 7,576 $ 8,045 FSE Acquisition 17,675 — Currency translation adjustment (63 ) (469 ) Balance - Ending $ 25,188 $ 7,576 Our definite-lived intangible assets were comprised of the following: September 30, 2019 December 31, 2018 Weighted- Gross Accumulated Net Gross Accumulated Net Trademarks/Tradenames 22 years $ 11,529 $ (4,144 ) $ 7,385 $ 8,346 $ (3,888 ) $ 4,458 Customer relationships 15 years 15,083 (6,350 ) 8,733 14,022 (5,680 ) 8,342 Technical Know-how 5 years $ 7,810 $ (65 ) $ 7,745 — — — Covenant not to compete 5 years $ 5,020 $ (42 ) $ 4,978 — — — $ 39,442 $ (10,601 ) $ 28,841 $ 22,368 $ (9,568 ) $ 12,800 The aggregate intangible asset amortization expense was approximately $0.4 million and $0.3 million for the three months ended September 30, 2019 and 2018 , respectively. The aggregate intangible asset amortization expense was approximately $1.1 million and $1.0 million for the nine months ended September 30, 2019 and 2018 , respectively. The estimated intangible asset amortization expense for the fiscal year ending December 31, 2019 and for each of the five succeeding years will be as follows: 2019 $ 2,112 2020 $ 3,987 2021 $ 3,987 2022 $ 3,987 2023 $ 3,987 2024 $ 3,238 |
Leases
Leases | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Leases | Leases The Company leases office, warehouse and manufacturing space and certain equipment under non-cancelable operating lease agreements that generally require us to pay maintenance, insurance, taxes and other expenses in addition to annual rental fees. Our leases have remaining lease terms of one year to eight years, some of which include options to extend the leases for up to five years, and some of which include options to terminate the leases within one year. The components of lease expense are as follows: Three Months Ended September 30, 2019 Nine Months Ended September 30, 2019 Operating lease cost $ 1,858 $ 5,305 Finance lease cost: Amortization of right-of-use assets 92 252 Interest on lease liabilities 16 46 Total finance lease cost $ 108 $ 298 Short-term lease cost 1 1,793 5,557 Total lease expense $ 3,759 $ 11,160 1 Includes variable lease costs, which are not significant Supplemental cash flow information related to leases is as follows: Nine Months Ended September 30, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 5,200 Financing cash flows from finance leases $ 331 Supplemental balance sheet information related to leases is as follows: Balance Sheet Location September 30, 2019 Operating Leases Right-of-use assets, net Operating lease right-of-use assets, net 1 $ 23,333 Current liabilities Current operating lease liabilities $ 5,485 Non-current liabilities Operating lease liabilities 19,192 Total operating lease liabilities $ 24,677 Finance Leases Right-of-use assets $ 1,118 Accumulated depreciation (250 ) Right-of-use assets, net Other assets, net $ 868 Current liabilities Accrued liabilities and other $ 374 Non-current liabilities Other long-term liabilities 465 Total finance lease liabilities $ 839 Weighted Average Remaining Lease Term Operating leases 4.7 years Finance leases 3.0 years Weighted Average Discount Rate Operating leases 11.0 % Finance leases 7.2 % 1 Includes $20.2 million for operating leases existing on January 1, 2019 and $6.4 million for operating leases that commenced in the nine months ended September 30, 2019 , net of amortization of $3.3 million . As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at the lease commencement date in determining the present value of the lease payments. We utilize an incremental borrowing rate, which is reflective of the specific term of the leases and economic environment of each geographic region, and apply a portfolio approach for certain machinery and equipment that have consistent terms in a specific geographic region. Anticipated future lease costs, which are based in part on certain assumptions to approximate minimum annual rental commitments under non-cancelable leases, are as follows: Year Ending December 31, Operating Financing Total 2019 1 $ 1,920 $ 114 $ 2,034 2020 7,671 387 8,058 2021 7,285 236 7,521 2022 6,597 115 6,712 2023 2,597 53 2,650 Thereafter 5,751 14 5,765 Total lease payments $ 31,821 $ 919 $ 32,740 Less: Imputed interest (7,144 ) (80 ) (7,224 ) Present value of lease liabilities $ 24,677 $ 839 $ 25,516 1 Excluding lease costs for the nine months ended September 30, 2019 . The Company has additional operating leases for real estate of $10.6 million which have not commenced as of September 30, 2019 , and as such, have not been recognized on the Company's Condensed Consolidated Balance Sheet. These operating leases are expected to commence during 2019 with leases terms between 5 years and 7 years . The Company elected to apply the modified retrospective approach. As such, we did not restate the prior year Condensed Consolidated Balance Sheet. The following are the future minimum annual rental commitments under Topic 840 as disclosed in our December 31, 2018 Form 10-K: Year Ending December 31, 2019 $ 7,558 2020 $ 6,492 2021 $ 5,960 2022 $ 5,286 2023 $ 1,676 Thereafter $ 2,501 |
Leases | Leases The Company leases office, warehouse and manufacturing space and certain equipment under non-cancelable operating lease agreements that generally require us to pay maintenance, insurance, taxes and other expenses in addition to annual rental fees. Our leases have remaining lease terms of one year to eight years, some of which include options to extend the leases for up to five years, and some of which include options to terminate the leases within one year. The components of lease expense are as follows: Three Months Ended September 30, 2019 Nine Months Ended September 30, 2019 Operating lease cost $ 1,858 $ 5,305 Finance lease cost: Amortization of right-of-use assets 92 252 Interest on lease liabilities 16 46 Total finance lease cost $ 108 $ 298 Short-term lease cost 1 1,793 5,557 Total lease expense $ 3,759 $ 11,160 1 Includes variable lease costs, which are not significant Supplemental cash flow information related to leases is as follows: Nine Months Ended September 30, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 5,200 Financing cash flows from finance leases $ 331 Supplemental balance sheet information related to leases is as follows: Balance Sheet Location September 30, 2019 Operating Leases Right-of-use assets, net Operating lease right-of-use assets, net 1 $ 23,333 Current liabilities Current operating lease liabilities $ 5,485 Non-current liabilities Operating lease liabilities 19,192 Total operating lease liabilities $ 24,677 Finance Leases Right-of-use assets $ 1,118 Accumulated depreciation (250 ) Right-of-use assets, net Other assets, net $ 868 Current liabilities Accrued liabilities and other $ 374 Non-current liabilities Other long-term liabilities 465 Total finance lease liabilities $ 839 Weighted Average Remaining Lease Term Operating leases 4.7 years Finance leases 3.0 years Weighted Average Discount Rate Operating leases 11.0 % Finance leases 7.2 % 1 Includes $20.2 million for operating leases existing on January 1, 2019 and $6.4 million for operating leases that commenced in the nine months ended September 30, 2019 , net of amortization of $3.3 million . As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at the lease commencement date in determining the present value of the lease payments. We utilize an incremental borrowing rate, which is reflective of the specific term of the leases and economic environment of each geographic region, and apply a portfolio approach for certain machinery and equipment that have consistent terms in a specific geographic region. Anticipated future lease costs, which are based in part on certain assumptions to approximate minimum annual rental commitments under non-cancelable leases, are as follows: Year Ending December 31, Operating Financing Total 2019 1 $ 1,920 $ 114 $ 2,034 2020 7,671 387 8,058 2021 7,285 236 7,521 2022 6,597 115 6,712 2023 2,597 53 2,650 Thereafter 5,751 14 5,765 Total lease payments $ 31,821 $ 919 $ 32,740 Less: Imputed interest (7,144 ) (80 ) (7,224 ) Present value of lease liabilities $ 24,677 $ 839 $ 25,516 1 Excluding lease costs for the nine months ended September 30, 2019 . The Company has additional operating leases for real estate of $10.6 million which have not commenced as of September 30, 2019 , and as such, have not been recognized on the Company's Condensed Consolidated Balance Sheet. These operating leases are expected to commence during 2019 with leases terms between 5 years and 7 years . The Company elected to apply the modified retrospective approach. As such, we did not restate the prior year Condensed Consolidated Balance Sheet. The following are the future minimum annual rental commitments under Topic 840 as disclosed in our December 31, 2018 Form 10-K: Year Ending December 31, 2019 $ 7,558 2020 $ 6,492 2021 $ 5,960 2022 $ 5,286 2023 $ 1,676 Thereafter $ 2,501 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Warranty — We are subject to warranty claims for products that fail to perform as expected due to design or manufacturing deficiencies. Customers generally require their outside suppliers to guarantee or warrant their products and bear the cost of repair or replacement of such products. Depending on the terms under which we supply products to our customers, a customer may hold us responsible for some or all of the repair or replacement costs of defective products when the product supplied did not perform as represented. Our policy is to reserve for estimated future customer warranty costs based on historical trends and current economic factors. The following represents a summary of the warranty provision for the nine months ended September 30, 2019 : Balance - December 31, 2018 $ 3,911 Provision for new warranty claims 1,427 Change in provision for preexisting warranty claims 205 Deduction for payments made (2,098 ) Currency translation adjustment (33 ) Balance - September 30, 2019 $ 3,412 Leases — As disclosed in footnote 12, we lease office, warehouse and manufacturing space and certain equipment under non-cancelable operating lease agreements that generally require us to pay maintenance, insurance, taxes and other expenses in addition to annual rental fees. As of September 30, 2019 , our equipment leases did not provide for any material guarantee of a specified portion of residual values. Litigation — We are subject to various legal proceedings and claims arising in the ordinary course of business, including but not limited to workers' compensation claims, OSHA investigations, employment disputes, unfair labor practice charges, customer and supplier disputes, service provider disputes, product liability claims, intellectual property disputes, and environmental claims arising out of the conduct of our businesses and examinations by taxing authorities. Management believes that the Company maintains adequate insurance or that we have established reserves for issues that are probable and estimable in amounts that are adequate to cover reasonable adverse judgments not covered by insurance. Based upon the information available to management and discussions with legal counsel, it is the opinion of management that the ultimate outcome of the various legal actions and claims that are incidental to our business are not expected to have a material adverse impact on the consolidated financial position, results of operations, equity or cash flows; however, such matters are subject to many uncertainties and the outcomes of individual matters are not predictable with any degree of assurance. Debt Payments — As disclosed in footnote 14, the TLS Agreement requires the Company to repay a fixed amount of principal on a quarterly basis, make mandatory prepayments of excess cash flows and make voluntary prepayments that coincide with certain events. The following table provides future minimum principal payments due on long-term debt for the next five years. A mandatory prepayment of $4.2 million pursuant to the excess free cash flow sweep provision of the TLS Agreement was made during the nine months ended September 30, 2019 . No mandatory prepayment was effective prior to 2019. The existing long-term debt agreements mature in 2023. Year Ending December 31, 2019 $ 2,187 2020 $ 4,375 2021 $ 4,375 2022 $ 4,375 2023 $ 146,788 Thereafter $ — |
Debt and Credit Facilities
Debt and Credit Facilities | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Debt and Credit Facilities | Debt and Credit Facilities Debt consisted of the following: September 30, 2019 December 31, 2018 Term loan and security agreement 1 $ 158,285 $ 163,758 1 Presented in the Condensed Consolidated Balance Sheets as of September 30, 2019 as current portion of long-term debt of $3.3 million , net of deferred financing costs and original issue discount each of $0.5 million ; and long-term debt of $155.0 million , net of deferred financing costs and original issue discount of $1.3 million and $1.4 million , respectively. Term Loan and Security Agreement On April 12, 2017, the Company entered into a $175.0 million senior secured Term Loan and Security Agreement (the “TLS Agreement”) maturing on April 12, 2023, the terms of which are described in footnote 7 in our 2018 Form 10-K. The unamortized deferred financing fees of $1.8 million and original issue discount of $2.0 million are netted against the aggregate book value of the outstanding debt resulting in a balance of $158.3 million as of September 30, 2019 and are being amortized over the remaining life of the agreement. The TLS Agreement contains customary restrictive, financial maintenance and reporting covenants that are described in footnote 7 in our 2018 Form 10-K. The Company was in compliance with the covenants as of September 30, 2019 . Revolving Credit Facility On September 18, 2019, the Company and certain of its subsidiaries, as co–borrowers, entered into an Amendment No. 1 (the “Amendment”), which amends the Third Amended and Restated Loan and Security Agreement (the “Revolving Loan Agreement”), dated as of April 12, 2017, with Bank of America, N.A., as agent, and certain financial institutions, as lenders, which agreement governs the Company’s asset based revolving credit facility (the “Revolving Credit Facility”). The Amendment amends the terms of the existing Revolving Loan Agreement to entitle the Company and the other named borrowers thereunder (subject to the terms and conditions described therein) to request loans and other financial accommodations in an amount equal to the lesser of $90.0 million and a borrowing base composed of accounts receivable and inventory (such facility, the “Tranche A Facility”). Of the $90.0 million , $7.0 million shall be available as a first–in, last–out facility (“Tranche B Facility”) at a 100 basis points premium, as detailed in the below applicable margin table. The Company can increase the size of the revolving commitments under the Revolving Credit Facility by an incremental $20.0 million , subject to the consent of the lenders providing the incremental commitments. The applicable margin, which is set at Level III as of September 30, 2019 , is based on average daily availability under the revolving credit facility as follows: Level Average Daily Availability Tranche A Tranche A Tranche B Tranche B III ≥ $30,000,000 0.50 % 1.50 % 1.50 % 2.50 % II > $15,000,000 but < $30,000,000 0.75 % 1.75 % 1.75 % 2.75 % I ≤ $15,000,000 1.00 % 2.00 % 2.00 % 3.00 % At September 30, 2019 we had no borrowings under the revolving credit facility, and the outstanding letters of credit were $1.6 million and we had availability of $70.5 million . The unamortized deferred financing fees associated with our revolving credit facility of $0.6 million and $0.7 million as of September 30, 2019 and December 31, 2018 , respectively, are being amortized over the remaining life of the agreement. At December 31, 2018 we did not have borrowings under the revolving credit facility and had outstanding letters of credit $1.7 million . The Third ARLS Agreement contains customary restrictive, financial maintenance and reporting covenants that are described in footnote 7 in our 2018 Form 10-K. Since the Company had borrowing availability in excess of the greater of (i) $5.0 million or (ii) ten percent ( 10% ) of the revolving commitments from December 31, 2018 through September 30, 2019 , the Company was not required to comply with the minimum fixed charge coverage ratio covenant during the quarter ended September 30, 2019 . The Company was in compliance with all applicable covenants as of September 30, 2019 . |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes We file federal income tax returns in the U.S. and income tax returns in various U.S. state and foreign jurisdictions. In the U.S., we are generally no longer subject to tax assessment for tax years prior to 2016. In our major foreign jurisdictions including China, Czech Republic, Mexico and the United Kingdom, our income tax filings are generally subject to examination for three to five years. As of September 30, 2019 and December 31, 2018 , the Company had $0.5 million and $0.5 million , respectively, in unrecognized tax benefits related to U.S. federal, state and foreign jurisdictions which may impact our effective tax rate, if recognized. The domestic unrecognized tax benefits are netted against their related deferred tax assets. We accrue penalties and interest related to unrecognized tax benefits through income tax expense. Included in the unrecognized tax benefits is $0.3 million of interest and penalties as of September 30, 2019 and December 31, 2018 . We are not aware of any events that could occur within the next twelve months that would have a material impact on the amount of unrecognized tax benefits that would require a reserve. At September 30, 2019 , due to cumulative losses and other factors, we continue to carry valuation allowances against certain deferred tax assets, primarily in the United Kingdom and Luxembourg. Additionally, we continue to carry valuation allowances related to certain state deferred tax assets that we believe are more likely than not to expire before they can be utilized. We evaluate the need for valuation allowances in each of our jurisdictions on a quarterly basis. During the period ended September 30, 2019, the Company recorded a $2.1 million net income tax benefit attributable to period-specific adjustments consisting of a $1.3 million income tax benefit associated with amending its 2012 through 2017 U.S. federal income tax returns to claim additional foreign tax credits and a $0.8 million income tax benefit associated with its U.S. federal income tax return and the local country income tax returns of certain foreign subsidiaries filed for the tax year ended December 31, 2018. |
Segment Reporting
Segment Reporting | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting As disclosed in footnote 10 of our 2018 Form 10-K, we completed a strategic reorganization of our operations into two business segments, Electrical Systems and Global Seating. As a result of the strategic reorganization, we restated prior period segment information to conform to the current period segment presentation. As discussed in footnote 3, the Company completed the FSE Acquisition in September 2019. FSE financial results are reflected in the Electrical Systems Segment. Administrative costs associated with the acquisition totaling $0.9 million are reflected in Corporate/Other. The following tables present segment revenues, gross profit, selling, general and administrative expenses, amortization expense, operating income, capital expenditures and depreciation expense and other items for the three and nine months ended September 30, 2019 and 2018 : Three Months Ended September 30, 2019 Electrical Systems Global Seating Corporate/ Total Revenues External Revenues $ 129,710 $ 95,689 $ — $ 225,399 Intersegment Revenues 1,732 30 (1,762 ) — Total Revenues $ 131,442 $ 95,719 $ (1,762 ) $ 225,399 Gross Profit $ 18,932 $ 12,331 $ (59 ) $ 31,204 Selling, General & Administrative Expenses 4,030 5,043 8,458 17,531 Amortization Expense 303 134 — 437 Operating Income $ 14,599 $ 7,154 $ (8,517 ) $ 13,236 Capital Expenditures $ 4,472 $ 1,064 $ 661 $ 6,197 Depreciation Expense $ 1,771 $ 1,041 $ 670 $ 3,482 Three Months Ended September 30, 2018 Electrical Systems Global Corporate/ Total Revenues External Revenues $ 125,220 $ 99,790 $ — $ 225,010 Intersegment Revenues 2,996 1,173 (4,169 ) — Total Revenues $ 128,216 $ 100,963 $ (4,169 ) $ 225,010 Gross Profit $ 18,304 $ 13,903 $ (30 ) $ 32,177 Selling, General & Administrative Expenses 3,790 5,692 6,131 15,613 Amortization Expense 186 135 — 321 Operating Income $ 14,328 $ 8,076 $ (6,161 ) $ 16,243 Capital Expenditures $ 3,155 $ 1,228 $ 281 $ 4,664 Depreciation Expense $ 1,723 $ 1,420 $ 3,718 $ 6,861 Nine Months Ended September 30, 2019 Electrical Systems Global Seating Corporate/ Total Revenues External Revenues $ 409,471 $ 302,282 $ — $ 711,753 Intersegment Revenues 7,529 2,774 (10,303 ) — Total Revenues $ 417,000 $ 305,056 $ (10,303 ) $ 711,753 Gross Profit $ 58,915 $ 40,797 $ (166 ) $ 99,546 Selling, General & Administrative Expenses 11,855 15,558 21,563 48,976 Amortization Expense 676 404 — 1,080 Operating Income $ 46,384 $ 24,835 $ (21,729 ) $ 49,490 Capital Expenditures $ 13,794 $ 2,847 $ 2,274 $ 18,915 Depreciation Expense $ 4,770 $ 3,186 $ 1,940 $ 9,896 Nine Months Ended September 30, 2018 Electrical Systems Global Corporate/ Total Revenues External Revenues $ 378,649 $ 295,486 $ — $ 674,135 Intersegment Revenues 7,055 2,765 (9,820 ) — Total Revenues $ 385,704 $ 298,251 $ (9,820 ) $ 674,135 Gross Profit $ 57,598 $ 41,512 $ (525 ) $ 98,585 Selling, General & Administrative Expenses 11,323 16,870 16,984 45,177 Amortization Expense 559 421 — 980 Operating Income $ 45,716 $ 24,221 $ (17,509 ) $ 52,428 Capital Expenditures $ 6,011 $ 2,298 $ 1,514 $ 9,823 Depreciation Expense $ 5,203 $ 3,574 $ 2,030 $ 10,807 |
Derivative Contracts
Derivative Contracts | 9 Months Ended |
Sep. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Contracts | Derivative Contracts We use foreign exchange contracts to hedge some of our foreign currency transaction exposures. We estimate our projected revenues and purchases in certain foreign currencies and may hedge a portion of the anticipated long or short positions. The contracts typically run from one month up to eighteen months. As our foreign exchange contracts are designated as hedging instruments, the fluctuations in fair value are recorded in accumulated other comprehensive income in the Condensed Consolidated Balance Sheets until the contracts mature, at which time the gains and losses are recognized in cost of revenues in the Condensed Consolidated Statements of Income. We do not hold or issue foreign exchange options or foreign exchange contracts for trading purposes. Our foreign exchange contracts are subject to a master netting agreement. We record assets and liabilities relating to our foreign exchange contracts on a gross basis in our Condensed Consolidated Balance Sheets. The following table summarizes the notional amount of our open foreign exchange contracts: September 30, 2019 December 31, 2018 U.S. $ Equivalent U.S. $ Equivalent Fair Value U.S. $ Equivalent U.S. $ Equivalent Fair Value Commitments to buy or sell currencies $ 4,705 $ 5,008 $ 22,371 $ 22,867 We consider the impact of our credit risk on the fair value of the contracts, as well as our ability to honor obligations under the contract. On June 30, 2017, the Company entered into an interest rate swap agreement to fix the interest rate on an initial aggregate amount of $80.0 million of the Term Loan Facility thereby reducing exposure to interest rate changes. The interest rate swap has a floor rate of 2.07% and an all-in rate of 8.07% , with a maturity date of April 30, 2022. As of September 30, 2019 , the interest rate swap agreement was not designated as a hedging instrument; therefore, it has been marked-to-market and the fair value of the agreement recorded in the Condensed Consolidated Balance Sheets with the offsetting gain or loss recorded in interest and other expense in our Condensed Consolidated Statements of Income. The following table summarizes the fair value and presentation in the Condensed Consolidated Balance Sheets for derivatives: Derivative Asset September 30, 2019 December 31, 2018 Balance Sheet Fair Value Balance Sheet Fair Value Foreign exchange contracts Other current assets $ 303 Other current assets $ 496 Interest rate swap agreement Other assets, net $ 353 Other assets, net $ 1,131 Derivative Liability September 30, 2019 December 31, 2018 Balance Sheet Fair Value Balance Sheet Fair Value Interest rate swap agreement Accrued liabilities $ 1,318 Accrued liabilities $ — Derivative Equity September 30, 2019 December 31, 2018 Balance Sheet Fair Value Balance Sheet Fair Value Foreign exchange contracts Accumulated other comprehensive loss $ 303 Accumulated other comprehensive loss $ 496 The following table summarizes the effect of derivative instruments on the Condensed Consolidated Statements of Income: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Location of (Loss) Gain Recognized in Income on Derivatives Location of (Loss) Gain Location of (Loss) Gain Foreign exchange contracts Cost of Revenues $ — $ 334 $ 4 $ 767 Interest rate swap agreement Interest and Other Expense $ (236 ) $ 350 $ (1,891 ) $ 1,950 |
Other Comprehensive Loss
Other Comprehensive Loss | 9 Months Ended |
Sep. 30, 2019 | |
Equity [Abstract] | |
Other Comprehensive Loss | Other Comprehensive Loss The after-tax changes in accumulated other comprehensive loss are as follows: Foreign Derivative instruments Pension and post-retirement benefits plans Accumulated other comprehensive loss Ending balance, December 31, 2018 $ (22,847 ) 496 $ (25,120 ) $ (47,471 ) Net current period change (3,048 ) — — (3,048 ) Derivative instruments — (193 ) — (193 ) Amortization of actuarial losses — — (1,008 ) (1,008 ) Ending balance, September 30, 2019 $ (25,895 ) $ 303 $ (26,128 ) $ (51,720 ) Foreign Derivative instruments Pension and post-retirement benefit plans Accumulated other comprehensive loss Ending balance, December 31, 2017 $ (17,172 ) $ — $ (24,063 ) $ (41,235 ) Net current period change (5,363 ) — — (5,363 ) Derivative instruments — — — — Amortization of actuarial losses — — (1,992 ) (1,992 ) Ending balance, September 30, 2018 $ (22,535 ) $ — $ (26,055 ) $ (48,590 ) The related tax effects allocated to each component of other comprehensive (loss) income are as follows: Three Months Ended Nine Months Ended September 30, 2019 September 30, 2019 Before Tax Tax Expense After Tax Amount Before Tax Tax Expense After Tax Amount Amortization of actuarial losses $ (2,186 ) $ 91 $ (2,095 ) $ (380 ) $ (628 ) $ (1,008 ) Derivative instruments (515 ) — (515 ) (193 ) — (193 ) Cumulative translation adjustment (3,388 ) — (3,388 ) (3,048 ) — (3,048 ) Total other comprehensive income (loss) $ (6,089 ) $ 91 $ (5,998 ) $ (3,621 ) $ (628 ) $ (4,249 ) Three Months Ended Nine Months Ended September 30, 2018 September 30, 2018 Before Tax Tax Expense After Tax Before Tax Tax Expense After Tax Amount Amortization of actuarial losses $ (1,230 ) $ 170 $ (1,060 ) $ (2,500 ) $ 508 $ (1,992 ) Cumulative translation adjustment (1,529 ) — (1,529 ) (5,363 ) — (5,363 ) Total other comprehensive (loss) income $ (2,759 ) $ 170 $ (2,589 ) $ (7,863 ) $ 508 $ (7,355 ) |
Pension and Other Post-Retireme
Pension and Other Post-Retirement Benefit Plans | 9 Months Ended |
Sep. 30, 2019 | |
Retirement Benefits [Abstract] | |
Pension and Other Post-Retirement Benefit Plans | Pension and Other Post-Retirement Benefit Plans We sponsor two defined benefit pension plans and other post-retirement benefit plans that cover certain hourly and salaried employees in the United States and United Kingdom. Each of the defined benefit pension plans are frozen to new participants. We make contributions to the plans as required by local regulations. During the three months ended March 31, 2019, the Company offered employees with deferred vested balances in the U.S. defined benefit pension plan the opportunity to voluntarily elect an early payout of their benefits. Payouts totaling $7.8 million were made during the nine months ended September 30, 2019 and were paid out of plan assets resulting in a non-cash settlement charge of $2.5 million , which was recorded in interest and other expense in the Condensed Consolidated Statements of Income and is reflected in amortization of prior service cost in the table below. The components of net periodic (benefit) cost related to pension and other post-retirement benefit plans is as follows: U.S. Pension Plans and Other Post-Retirement Benefit Plans Non-U.S. Pension Plans Three Months Ended September 30, Three Months Ended September 30, 2019 2018 2019 2018 Interest cost 217 418 268 265 Expected return on plan assets (470 ) (787 ) (268 ) (310 ) Amortization of prior service cost 23 2 12 — Recognized actuarial loss 75 69 129 126 Net cost (benefit) $ (155 ) $ (298 ) $ 141 $ 81 U.S. Pension Plans and Other Post-Retirement Benefit Plans Non-U.S. Pension Plans Nine Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Interest cost 1,107 1,254 831 821 Expected return on plan assets (1,794 ) (2,360 ) (834 ) (960 ) Amortization of prior service cost 1 2,517 5 36 — Recognized actuarial loss 262 206 397 393 Net cost (benefit) $ 2,092 $ (895 ) $ 430 $ 254 1 Includes $2.5 million non-cash settlement charge. Net periodic cost (benefit) components, not inclusive of service costs, are recognized in interest and other expense in the Condensed Consolidated Statements of Income. We expect to contribute approximately $1.7 million to our pension plans and our other post-retirement benefit plans in 2019 . As of September 30, 2019 , contributions totaling $1.4 million have been made. |
Recently Issued Accounting Pr_2
Recently Issued Accounting Pronouncements (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Changes and Error Corrections [Abstract] | |
Recently Issued Accounting Pronouncements | In July 2019, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2019-07, "Codification Updates to SEC Sections". ASU No. 2019-07 clarifies or improves the disclosure and presentation requirements of a variety of codification topics by aligning them with the SEC's regulations, thereby eliminating redundancies. This ASU is effective upon issuance and did not have a significant impact on the Company's consolidated financial statements and related disclosures. In June 2016, the FASB issued ASU No. 2016-13, "Financial Instruments - Credit Losses (Topic 326)". The ASU requires financial assets measured at amortized cost basis to be presented at the net amount expected to be collected. The FASB subsequently issued ASU No. 2018-19, "Codification Improvements to Topic 326: Financial Instruments - Credit Losses", in November 2018 which provided further guidance on assessment of receivables for operating leases. ASU No. 2019-04, "Codification Improvements to Topic 326, Topic 815 and Topic 825" and ASU No. 2019-05, "Targeted Transition Relief", that were issued in April and May of 2019 do not materially impact the Company. The Company anticipates ASU 2016-13 and ASU 2018-19 will apply to its trade receivables and will not have a material impact on the reported value of such receivables. We expect to implement ASU No. 2016-13 and 2018-19 on the effective date of January 1, 2020. Accounting Pronouncements Implemented in the Nine Months Ended September 30, 2019 In June 2018, the FASB issued ASU No. 2018-07, "Compensation - Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting". The ASU changed the measurement date for determining the fair value of share awards to nonemployees to the grant date and requires the consideration of the probability of satisfying performance obligations in assessing the awards. The ASU did not have a material impact on our recognition of share-based payments for nonemployees. |
Leases | Lease Accounting In February 2016, the FASB issued ASU No. 2016-02, "Leases (Topic 842)" followed by ASU No. 2018-11, "Leases (Topic 842): Targeted Improvements", issued in July 2018. The ASU is intended to increase transparency and comparability among companies by recognizing lease assets and liabilities and disclosing key information about leasing arrangements. ASU 2016-02 was adopted by the Company on January 1, 2019. In accordance with Topic 842, we elected not to recognize lease assets and lease liabilities for leases with a term of twelve months or less and elected to not separate lease and non-lease components. We elected the transition method option under ASU 2018-11 with the package of practical expedients that permits the Company to: (a) not reassess whether expired or existing contracts contain leases, (b) not reassess lease classification for existing or expired leases and (c) not consider whether previously capitalized initial direct costs would be appropriate under the new standard. We recorded a right-of-use asset of $21.2 million and a lease liability of $22.2 million upon adoption. We also elected the option to apply the new leasing standard on the date of adoption and recognize a cumulative-effect transition adjustment to the opening balance of retained earnings in the period of adoption resulting in a cumulative effect as of January 1, 2019 of $0.1 million As disclosed in footnote 12, we lease office, warehouse and manufacturing space and certain equipment under non-cancelable operating lease agreements that generally require us to pay maintenance, insurance, taxes and other expenses in addition to annual rental fees. As of September 30, 2019 , our equipment leases did not provide for any material guarantee of a specified portion of residual values. |
Revenue Recognition | Contractual Arrangements Revenue is measured based on terms and considerations specified in contracts with customers. We have long-term contracts with some customers that govern overall terms and conditions accompanied by individual purchase orders that define specific order quantities and/or price. We have many customers that operate under terms outlined in purchase orders without a long-term contract. We generally do not have customer contracts with minimum order quantity requirements. Amount and Timing of Revenue Recognition The transaction price is based on the consideration to which the Company will be entitled in exchange for transferring control of a product to the customer. This is defined in a purchase order or in a separate pricing arrangement and represents the stand-alone selling price. Our payment terms vary by the type and location of our customer and the products offered. None of the Company's contracts as of September 30, 2019 contained a significant financing component. We typically do not have multiple performance obligations requiring us to allocate a transaction price. We recognize revenue at the point in time when we satisfy a performance obligation by transferring control of a product to a customer, usually at a designated shipping point and in accordance with customer specifications. We make estimates for potential customer returns or adjustments based on historical experience, which reduce revenues. Other Matters Shipping and handling costs billed to customers are recorded in revenues and costs associated with outbound freight are generally accounted for as a fulfillment cost and are included in cost of revenues. We generally do not provide for extended warranties or material customer incentives. Our customers typically do not have a general right of return for our products. We had outstanding customer accounts receivable, net of allowances, of $153.2 million as of September 30, 2019 and $134.6 million as of December 31, 2018 . We generally do not have other assets or liabilities associated with customer contracts. In general, we do not make significant judgments or have variable consideration that impact our recognition of revenue. Our products include electrical wire harnesses and panel assemblies; trim systems and components ("Trim"); cab structures and sleeper boxes; mirrors, wipers and controls; and seats and seating systems ("Seats"). We sell these products into multiple geographic regions including North America, Europe and Asia-Pacific and to multiple customer end markets including MD/HD Truck OEMs, Bus OEMs, Construction OEMs, the aftermarket and other markets. The nature, timing and uncertainty of our recognition of revenue and associated cash flows across the varying product lines, geographic regions and customer end markets are substantially consistent. Refer to footnote 16 for revenue disclosures by reportable segments. |
Accounts Receivable | Trade accounts receivable are stated at current value less allowances, which approximates fair value. We review our receivables on an ongoing basis to ensure that they are properly valued and collectible. We record estimates of returns or allowances resulting from quality, delivery, discounts or other issues affecting the value of receivables. This amount is estimated based on historical trends and current market conditions, with the offset to revenues. The allowance for doubtful accounts is used to record the estimated risk of loss related to our customers’ inability to pay. This allowance is maintained at a level that we consider appropriate based on factors that affect collectability, such as the financial health of our customers, historical trends of charge-offs and recoveries and current economic market conditions. As we monitor our receivables, we identify customers that may have payment problems, and we adjust the allowance accordingly, with the offset to selling, general and administrative expense. Account balances are charged off against the allowance when recovery is considered remote. |
Warranty | We are subject to warranty claims for products that fail to perform as expected due to design or manufacturing deficiencies. Customers generally require their outside suppliers to guarantee or warrant their products and bear the cost of repair or replacement of such products. Depending on the terms under which we supply products to our customers, a customer may hold us responsible for some or all of the repair or replacement costs of defective products when the product supplied did not perform as represented. Our policy is to reserve for estimated future customer warranty costs based on historical trends and current economic factors. |
Business Combinations (Tables)
Business Combinations (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Business Combinations [Abstract] | |
Schedule of Business Acquisitions, by Acquisition | The excess purchase price over net assets acquired was as follows: Initial cash paid, net of working capital adjustment $ 34,000 Contingent consideration at fair value 4,700 Total consideration $ 38,700 Net assets at fair value 21,025 Excess of total consideration over net assets acquired $ 17,675 |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The preliminary fair value of the assets acquired and liabilities assumed allocation was as follows: Accounts receivable $ 6,567 Inventories 3,140 Prepaid and other current assets 353 Property, plant and equipment 503 Other long-term assets 1,650 Definite-lived intangible assets 17,190 Goodwill 17,675 Accounts payable and accrued liabilities (7,204 ) Other long-term liabilities (1,174 ) Total consideration $ 38,700 |
Business Acquisition, Pro Forma Information | The following unaudited pro forma information for the three and nine months ended September 30, 2019 and 2018 presents the result of operations as if the FSE Acquisition had taken place at the beginning of the comparable prior annual reporting period. The pro forma results reflect estimates and assumptions and are not necessarily indicative of the financial position or result of operations had the acquisitions taken place at the beginning of the period. The Company adjusted historical results for assumed intangible amortization expense consistent with future years and assumed tax impact of 25%. In addition, the pro forma results are not necessarily indicative of the future financial or operating results: Three months ended September 30, Nine months ended September 30, (unaudited) 2019 2018 2019 2018 Revenue $ 235,470 $ 232,964 $ 747,280 $ 699,245 Net income $ 8,761 $ 12,818 $ 29,068 $ 36,899 Earnings per share attributable to common stockholders: Basic $ 0.29 $ 0.42 $ 0.95 $ 1.22 Diluted $ 0.28 $ 0.42 $ 0.94 $ 1.21 |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Values of Our Derivative Assets and Liabilities | The fair values of our derivative assets and liabilities are categorized as follows: September 30, 2019 December 31, 2018 Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Derivative assets Foreign exchange contract 1 $ 303 $ — $ 303 $ — $ 496 $ — $ 496 $ — Interest rate swap agreement 2 $ 353 $ — $ 353 $ — $ 1,131 $ — $ 1,131 $ — Derivative liabilities Interest rate swap agreement 2 $ 1,318 $ — $ 1,318 $ — $ — $ — $ — $ — Derivative equity Foreign exchange contract 3 $ 303 $ — $ 303 $ — $ 496 $ — $ 496 $ — 1 Presented in the Condensed Consolidated Balance Sheets in other current assets and based on observable market transactions of spot and forward rates. 2 Presented in the Condensed Consolidated Balance Sheets in accrued liabilities in the amount of $1.0 million and based on observable market transactions and forward rates. 3 Presented in the Consolidated Balance Sheets in accumulated other comprehensive income and based on observable market transactions of spot and forward rates. |
Carrying Amounts and Fair Values of Our Long-Term Debt Obligations | The carrying amounts and fair values of our long-term debt obligations are as follows: September 30, 2019 December 31, 2018 Carrying Amount Fair Value Carrying Amount Fair Value Term loan and security agreement 1 $ 158,285 $ 158,285 $ 163,758 $ 161,759 1 Presented in the Condensed Consolidated Balance Sheets as the current portion of long-term debt of $3.3 million and long-term debt of $155.0 million as of September 30, 2019 , and current portion of long-term debt of $9.1 million and long-term debt of $154.7 million as of December 31, 2018 . |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Equity [Abstract] | |
Diluted Earnings per Share | Diluted earnings per share for the three and nine months ended September 30, 2019 and 2018 includes the effects of potential common shares issuable when dilutive, and is as follows: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Net income $ 8,520 $ 12,583 $ 26,827 $ 35,631 Weighted average number of common shares outstanding ('000s) 30,581 30,219 30,547 30,219 Dilutive effect of restricted stock grants after application of the Treasury Stock Method 271 419 282 356 Dilutive shares outstanding ('000s) 30,852 30,638 30,829 30,575 Basic earnings per share $ 0.28 $ 0.42 $ 0.88 $ 1.18 Diluted earnings per share $ 0.28 $ 0.41 $ 0.87 $ 1.17 |
Schedule of Stockholders Equity | The changes in stockholder's equity are as follows: Nine Months Ended September 30, 2019 Common Stock Treasury Stock Additional Paid In Capital Retained Deficit Accumulated Other Comp. Loss Total CVG Stockholders’ Equity Shares ('000s) Amount Balance - December 31, 2018 30,513 $ 318 $ (10,245 ) $ 243,007 $ (70,571 ) $ (47,471 ) $ 115,038 Share-based compensation expense — — — 761 — — 761 Cumulative effect of adoption of Topic 842 — — — — (72 ) — (72 ) Total comprehensive income — — — — 11,130 (206 ) 10,924 Balance - March 31, 2019 30,513 $ 318 $ (10,245 ) $ 243,768 $ (59,513 ) $ (47,677 ) $ 126,651 Share-based compensation expense 68 1 — 718 — — 719 Total comprehensive income — — — — 7,177 1,955 9,132 Balance - June 30, 2019 30,581 $ 319 $ (10,245 ) $ 244,486 $ (52,336 ) $ (45,722 ) $ 136,502 Share-based compensation expense — — — 721 — — 721 Total comprehensive income — — — — 8,520 (5,998 ) 2,522 Balance - September 30, 2019 30,581 $ 319 $ (10,245 ) $ 245,207 $ (43,816 ) $ (51,720 ) $ 139,745 Nine Months Ended September 30, 2018 Common Stock Treasury Stock Additional Paid In Capital Retained Deficit Accumulated Other Comp. Loss Total CVG Stockholders’ Equity Shares ('000s) Amount Balance - December 31, 2017 30,219 $ 304 $ (9,114 ) $ 239,870 $ (115,083 ) $ (41,235 ) $ 74,742 Share-based compensation expense — — — 673 — — 673 Total comprehensive income — — — — 9,853 1,132 10,985 Balance - March 31, 2018 30,219 $ 304 $ (9,114 ) $ 240,543 $ (105,230 ) $ (40,103 ) $ 86,400 Share-based compensation expense — — — 844 — — 844 Total comprehensive income — $ — $ — $ — $ 13,195 $ (5,898 ) $ 7,297 Balance - June 30, 2018 30,219 $ 304 $ (9,114 ) $ 241,387 $ (92,035 ) $ (46,001 ) $ 94,541 Share-based compensation expense — $ — $ — $ 780 $ — $ — $ 780 Total comprehensive income — — — — 12,583 (2,589 ) 9,994 Balance - September 30, 2018 30,219 $ 304 $ (9,114 ) $ 242,167 $ (79,452 ) $ (48,590 ) $ 105,315 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Summary of Information about Restricted Stock Grants Outstanding | The following table summarizes information about outstanding restricted stock grants as of September 30, 2019 : Grant Shares ('000) Vesting Schedule Unearned Compensation Remaining Periods (in months) October 2016 411 3 equal annual installments commencing on October 20, 2017 $ 51.2 1 July 2017 6 3 equal annual installments commencing on October 20, 2017 $ 1.3 1 October 2017 303 3 equal annual installments commencing on October 20, 2018 $ 953.4 13 October 2018 382 3 equal annual installments commencing on October 20, 2019 $ 1,733.3 25 May 2019 71 Shares granted to independent board members that fully vest as of May 16, 2020 $ 315.0 7 |
Summary of Information about Nonvested Restricted Stock Grants | The following table summarizes information about the non-vested restricted stock grants for the nine months ended September 30, 2019 and 2018 : Nine months ended September 30, 2019 2018 Shares Weighted- Shares Weighted- Nonvested at December 31 760 $ 7.56 787 $ 6.84 Granted 75 7.60 64 8.41 Vested (68 ) 8.38 — — Forfeited (21 ) 7.48 (16 ) 7.12 Nonvested at September 30 746 $ 7.49 835 $ 6.96 |
Performance Awards (Tables)
Performance Awards (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Performance Activity | The following table summarizes performance awards granted in the form of cash awards under the 2014 EIP in November 2018 , 2017 and 2016 : Grant Date Grant Amount Adjustments Forfeitures Adjusted Award Value September 30, 2019 Vesting Schedule Remaining Periods (in Months) to Vesting November 2016 $ 1,434 $ — $ (88 ) $ 1,346 November 2019 1 November 2017 1,584 (26 ) (53 ) 1,505 November 2020 13 November 2018 1,590 (49 ) (55 ) 1,486 November 2021 25 $ 4,608 $ (75 ) $ (196 ) $ 4,337 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories consisted of the following: September 30, 2019 December 31, 2018 Raw materials $ 64,344 $ 66,965 Work in process 12,916 12,333 Finished goods 12,926 13,061 $ 90,186 $ 92,359 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in Carrying Amounts of Goodwill | The changes in the carrying amounts of goodwill for the nine months ended September 30, 2019 and the year ended December 31, 2018 are as follows: September 30, 2019 December 31, 2018 Balance - Beginning $ 7,576 $ 8,045 FSE Acquisition 17,675 — Currency translation adjustment (63 ) (469 ) Balance - Ending $ 25,188 $ 7,576 |
Summary of Intangible Assets | Our definite-lived intangible assets were comprised of the following: September 30, 2019 December 31, 2018 Weighted- Gross Accumulated Net Gross Accumulated Net Trademarks/Tradenames 22 years $ 11,529 $ (4,144 ) $ 7,385 $ 8,346 $ (3,888 ) $ 4,458 Customer relationships 15 years 15,083 (6,350 ) 8,733 14,022 (5,680 ) 8,342 Technical Know-how 5 years $ 7,810 $ (65 ) $ 7,745 — — — Covenant not to compete 5 years $ 5,020 $ (42 ) $ 4,978 — — — $ 39,442 $ (10,601 ) $ 28,841 $ 22,368 $ (9,568 ) $ 12,800 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | The estimated intangible asset amortization expense for the fiscal year ending December 31, 2019 and for each of the five succeeding years will be as follows: 2019 $ 2,112 2020 $ 3,987 2021 $ 3,987 2022 $ 3,987 2023 $ 3,987 2024 $ 3,238 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Lease Costs | The components of lease expense are as follows: Three Months Ended September 30, 2019 Nine Months Ended September 30, 2019 Operating lease cost $ 1,858 $ 5,305 Finance lease cost: Amortization of right-of-use assets 92 252 Interest on lease liabilities 16 46 Total finance lease cost $ 108 $ 298 Short-term lease cost 1 1,793 5,557 Total lease expense $ 3,759 $ 11,160 1 Includes variable lease costs, which are not significant Supplemental cash flow information related to leases is as follows: Nine Months Ended September 30, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 5,200 Financing cash flows from finance leases $ 331 |
Assets And Liabilities, Lessee | Supplemental balance sheet information related to leases is as follows: Balance Sheet Location September 30, 2019 Operating Leases Right-of-use assets, net Operating lease right-of-use assets, net 1 $ 23,333 Current liabilities Current operating lease liabilities $ 5,485 Non-current liabilities Operating lease liabilities 19,192 Total operating lease liabilities $ 24,677 Finance Leases Right-of-use assets $ 1,118 Accumulated depreciation (250 ) Right-of-use assets, net Other assets, net $ 868 Current liabilities Accrued liabilities and other $ 374 Non-current liabilities Other long-term liabilities 465 Total finance lease liabilities $ 839 Weighted Average Remaining Lease Term Operating leases 4.7 years Finance leases 3.0 years Weighted Average Discount Rate Operating leases 11.0 % Finance leases 7.2 % 1 Includes $20.2 million for operating leases existing on January 1, 2019 and $6.4 million for operating leases that commenced in the nine months ended September 30, 2019 , net of amortization of $3.3 million . |
Finance Lease, Liability, Maturity | Anticipated future lease costs, which are based in part on certain assumptions to approximate minimum annual rental commitments under non-cancelable leases, are as follows: Year Ending December 31, Operating Financing Total 2019 1 $ 1,920 $ 114 $ 2,034 2020 7,671 387 8,058 2021 7,285 236 7,521 2022 6,597 115 6,712 2023 2,597 53 2,650 Thereafter 5,751 14 5,765 Total lease payments $ 31,821 $ 919 $ 32,740 Less: Imputed interest (7,144 ) (80 ) (7,224 ) Present value of lease liabilities $ 24,677 $ 839 $ 25,516 1 Excluding lease costs for the nine months ended September 30, 2019 . |
Lessee, Operating Lease, Liability, Maturity | Anticipated future lease costs, which are based in part on certain assumptions to approximate minimum annual rental commitments under non-cancelable leases, are as follows: Year Ending December 31, Operating Financing Total 2019 1 $ 1,920 $ 114 $ 2,034 2020 7,671 387 8,058 2021 7,285 236 7,521 2022 6,597 115 6,712 2023 2,597 53 2,650 Thereafter 5,751 14 5,765 Total lease payments $ 31,821 $ 919 $ 32,740 Less: Imputed interest (7,144 ) (80 ) (7,224 ) Present value of lease liabilities $ 24,677 $ 839 $ 25,516 1 Excluding lease costs for the nine months ended September 30, 2019 . |
Schedule of Future Minimum Rental Payments for Operating Leases | The following are the future minimum annual rental commitments under Topic 840 as disclosed in our December 31, 2018 Form 10-K: Year Ending December 31, 2019 $ 7,558 2020 $ 6,492 2021 $ 5,960 2022 $ 5,286 2023 $ 1,676 Thereafter $ 2,501 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of Warranty Provision | The following represents a summary of the warranty provision for the nine months ended September 30, 2019 : Balance - December 31, 2018 $ 3,911 Provision for new warranty claims 1,427 Change in provision for preexisting warranty claims 205 Deduction for payments made (2,098 ) Currency translation adjustment (33 ) Balance - September 30, 2019 $ 3,412 |
Schedule of Minimum Principal Payments Due on Long-term Debt | The existing long-term debt agreements mature in 2023. Year Ending December 31, 2019 $ 2,187 2020 $ 4,375 2021 $ 4,375 2022 $ 4,375 2023 $ 146,788 Thereafter $ — |
Debt and Credit Facilities (Tab
Debt and Credit Facilities (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Summary of Debt | Debt consisted of the following: September 30, 2019 December 31, 2018 Term loan and security agreement 1 $ 158,285 $ 163,758 1 Presented in the Condensed Consolidated Balance Sheets as of September 30, 2019 as current portion of long-term debt of $3.3 million , net of deferred financing costs and original issue discount each of $0.5 million ; and long-term debt of $155.0 million , net of deferred financing costs and original issue discount of $1.3 million and $1.4 million , respectively. |
Margin for Borrowings under Revolving Credit Facility | The applicable margin, which is set at Level III as of September 30, 2019 , is based on average daily availability under the revolving credit facility as follows: Level Average Daily Availability Tranche A Tranche A Tranche B Tranche B III ≥ $30,000,000 0.50 % 1.50 % 1.50 % 2.50 % II > $15,000,000 but < $30,000,000 0.75 % 1.75 % 1.75 % 2.75 % I ≤ $15,000,000 1.00 % 2.00 % 2.00 % 3.00 % |
Segment Reporting (Tables)
Segment Reporting (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Segment Reporting Information | The following tables present segment revenues, gross profit, selling, general and administrative expenses, amortization expense, operating income, capital expenditures and depreciation expense and other items for the three and nine months ended September 30, 2019 and 2018 : Three Months Ended September 30, 2019 Electrical Systems Global Seating Corporate/ Total Revenues External Revenues $ 129,710 $ 95,689 $ — $ 225,399 Intersegment Revenues 1,732 30 (1,762 ) — Total Revenues $ 131,442 $ 95,719 $ (1,762 ) $ 225,399 Gross Profit $ 18,932 $ 12,331 $ (59 ) $ 31,204 Selling, General & Administrative Expenses 4,030 5,043 8,458 17,531 Amortization Expense 303 134 — 437 Operating Income $ 14,599 $ 7,154 $ (8,517 ) $ 13,236 Capital Expenditures $ 4,472 $ 1,064 $ 661 $ 6,197 Depreciation Expense $ 1,771 $ 1,041 $ 670 $ 3,482 Three Months Ended September 30, 2018 Electrical Systems Global Corporate/ Total Revenues External Revenues $ 125,220 $ 99,790 $ — $ 225,010 Intersegment Revenues 2,996 1,173 (4,169 ) — Total Revenues $ 128,216 $ 100,963 $ (4,169 ) $ 225,010 Gross Profit $ 18,304 $ 13,903 $ (30 ) $ 32,177 Selling, General & Administrative Expenses 3,790 5,692 6,131 15,613 Amortization Expense 186 135 — 321 Operating Income $ 14,328 $ 8,076 $ (6,161 ) $ 16,243 Capital Expenditures $ 3,155 $ 1,228 $ 281 $ 4,664 Depreciation Expense $ 1,723 $ 1,420 $ 3,718 $ 6,861 Nine Months Ended September 30, 2019 Electrical Systems Global Seating Corporate/ Total Revenues External Revenues $ 409,471 $ 302,282 $ — $ 711,753 Intersegment Revenues 7,529 2,774 (10,303 ) — Total Revenues $ 417,000 $ 305,056 $ (10,303 ) $ 711,753 Gross Profit $ 58,915 $ 40,797 $ (166 ) $ 99,546 Selling, General & Administrative Expenses 11,855 15,558 21,563 48,976 Amortization Expense 676 404 — 1,080 Operating Income $ 46,384 $ 24,835 $ (21,729 ) $ 49,490 Capital Expenditures $ 13,794 $ 2,847 $ 2,274 $ 18,915 Depreciation Expense $ 4,770 $ 3,186 $ 1,940 $ 9,896 Nine Months Ended September 30, 2018 Electrical Systems Global Corporate/ Total Revenues External Revenues $ 378,649 $ 295,486 $ — $ 674,135 Intersegment Revenues 7,055 2,765 (9,820 ) — Total Revenues $ 385,704 $ 298,251 $ (9,820 ) $ 674,135 Gross Profit $ 57,598 $ 41,512 $ (525 ) $ 98,585 Selling, General & Administrative Expenses 11,323 16,870 16,984 45,177 Amortization Expense 559 421 — 980 Operating Income $ 45,716 $ 24,221 $ (17,509 ) $ 52,428 Capital Expenditures $ 6,011 $ 2,298 $ 1,514 $ 9,823 Depreciation Expense $ 5,203 $ 3,574 $ 2,030 $ 10,807 |
Derivative Contracts (Tables)
Derivative Contracts (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Notional Amount of Foreign Exchange Contracts | The following table summarizes the notional amount of our open foreign exchange contracts: September 30, 2019 December 31, 2018 U.S. $ Equivalent U.S. $ Equivalent Fair Value U.S. $ Equivalent U.S. $ Equivalent Fair Value Commitments to buy or sell currencies $ 4,705 $ 5,008 $ 22,371 $ 22,867 |
Fair Value and Presentation in Consolidated Balance Sheets for Derivatives none of which are Designated as Accounting Hedges | The following table summarizes the fair value and presentation in the Condensed Consolidated Balance Sheets for derivatives: Derivative Asset September 30, 2019 December 31, 2018 Balance Sheet Fair Value Balance Sheet Fair Value Foreign exchange contracts Other current assets $ 303 Other current assets $ 496 Interest rate swap agreement Other assets, net $ 353 Other assets, net $ 1,131 Derivative Liability September 30, 2019 December 31, 2018 Balance Sheet Fair Value Balance Sheet Fair Value Interest rate swap agreement Accrued liabilities $ 1,318 Accrued liabilities $ — Derivative Equity September 30, 2019 December 31, 2018 Balance Sheet Fair Value Balance Sheet Fair Value Foreign exchange contracts Accumulated other comprehensive loss $ 303 Accumulated other comprehensive loss $ 496 |
Effect of Derivative Instruments on Consolidated Statements of Operations for Derivatives not Designated as Hedging Instruments | The following table summarizes the effect of derivative instruments on the Condensed Consolidated Statements of Income: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Location of (Loss) Gain Recognized in Income on Derivatives Location of (Loss) Gain Location of (Loss) Gain Foreign exchange contracts Cost of Revenues $ — $ 334 $ 4 $ 767 Interest rate swap agreement Interest and Other Expense $ (236 ) $ 350 $ (1,891 ) $ 1,950 |
Other Comprehensive Loss (Table
Other Comprehensive Loss (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Equity [Abstract] | |
After-tax Changes in Accumulated Other Comprehensive Loss | The after-tax changes in accumulated other comprehensive loss are as follows: Foreign Derivative instruments Pension and post-retirement benefits plans Accumulated other comprehensive loss Ending balance, December 31, 2018 $ (22,847 ) 496 $ (25,120 ) $ (47,471 ) Net current period change (3,048 ) — — (3,048 ) Derivative instruments — (193 ) — (193 ) Amortization of actuarial losses — — (1,008 ) (1,008 ) Ending balance, September 30, 2019 $ (25,895 ) $ 303 $ (26,128 ) $ (51,720 ) Foreign Derivative instruments Pension and post-retirement benefit plans Accumulated other comprehensive loss Ending balance, December 31, 2017 $ (17,172 ) $ — $ (24,063 ) $ (41,235 ) Net current period change (5,363 ) — — (5,363 ) Derivative instruments — — — — Amortization of actuarial losses — — (1,992 ) (1,992 ) Ending balance, September 30, 2018 $ (22,535 ) $ — $ (26,055 ) $ (48,590 ) |
Related Tax Effects Allocated to Each Component of Accumulated Other Comprehensive Loss | The related tax effects allocated to each component of other comprehensive (loss) income are as follows: Three Months Ended Nine Months Ended September 30, 2019 September 30, 2019 Before Tax Tax Expense After Tax Amount Before Tax Tax Expense After Tax Amount Amortization of actuarial losses $ (2,186 ) $ 91 $ (2,095 ) $ (380 ) $ (628 ) $ (1,008 ) Derivative instruments (515 ) — (515 ) (193 ) — (193 ) Cumulative translation adjustment (3,388 ) — (3,388 ) (3,048 ) — (3,048 ) Total other comprehensive income (loss) $ (6,089 ) $ 91 $ (5,998 ) $ (3,621 ) $ (628 ) $ (4,249 ) Three Months Ended Nine Months Ended September 30, 2018 September 30, 2018 Before Tax Tax Expense After Tax Before Tax Tax Expense After Tax Amount Amortization of actuarial losses $ (1,230 ) $ 170 $ (1,060 ) $ (2,500 ) $ 508 $ (1,992 ) Cumulative translation adjustment (1,529 ) — (1,529 ) (5,363 ) — (5,363 ) Total other comprehensive (loss) income $ (2,759 ) $ 170 $ (2,589 ) $ (7,863 ) $ 508 $ (7,355 ) |
Pension and Other Post-Retire_2
Pension and Other Post-Retirement Benefit Plans (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Retirement Benefits [Abstract] | |
Components of Net Periodic Benefit Cost | The components of net periodic (benefit) cost related to pension and other post-retirement benefit plans is as follows: U.S. Pension Plans and Other Post-Retirement Benefit Plans Non-U.S. Pension Plans Three Months Ended September 30, Three Months Ended September 30, 2019 2018 2019 2018 Interest cost 217 418 268 265 Expected return on plan assets (470 ) (787 ) (268 ) (310 ) Amortization of prior service cost 23 2 12 — Recognized actuarial loss 75 69 129 126 Net cost (benefit) $ (155 ) $ (298 ) $ 141 $ 81 U.S. Pension Plans and Other Post-Retirement Benefit Plans Non-U.S. Pension Plans Nine Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Interest cost 1,107 1,254 831 821 Expected return on plan assets (1,794 ) (2,360 ) (834 ) (960 ) Amortization of prior service cost 1 2,517 5 36 — Recognized actuarial loss 262 206 397 393 Net cost (benefit) $ 2,092 $ (895 ) $ 430 $ 254 1 Includes $2.5 million non-cash settlement charge. |
Description of Business and B_2
Description of Business and Basis of Presentation - Additional Information (Details) - segment | 3 Months Ended | 9 Months Ended |
Dec. 31, 2018 | Sep. 30, 2019 | |
Accounting Policies [Abstract] | ||
Reportable segments | 2 | 2 |
Recently Issued Accounting Pr_3
Recently Issued Accounting Pronouncements - Additional Information (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating lease assets | $ 23,333 | $ 21,200 | $ 0 |
Total operating lease liabilities | $ 24,677 | 22,200 | |
Adoption of ASU 2016-02 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Cumulative effect of adoption of Topic 842 | 72 | ||
Retained Deficit | Adoption of ASU 2016-02 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Cumulative effect of adoption of Topic 842 | $ 72 |
Business Combinations - Narrati
Business Combinations - Narrative (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Sep. 17, 2019 | Sep. 30, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 |
Business Acquisition [Line Items] | |||||||
Borrowings on revolving credit facility | $ 8,500 | $ 80,500 | |||||
Goodwill | $ 25,188 | $ 25,188 | 25,188 | $ 7,576 | $ 8,045 | ||
FSE Acquisition | |||||||
Business Acquisition [Line Items] | |||||||
Initial cash paid, net of working capital adjustment | $ 34,000 | ||||||
Range of outcomes, value, high | 5,600 | 10,750 | 5,600 | 5,600 | |||
Contingent consideration | 4,700 | 4,700 | 4,700 | ||||
Escrow fund | 3,000 | ||||||
Revenues | $ 2,500 | ||||||
Acquisition related costs | $ 900 | $ 900 | |||||
Goodwill | $ 17,675 | ||||||
Minimum | FSE Acquisition | |||||||
Business Acquisition [Line Items] | |||||||
Payments for milestones, determined by EBITDA (percent) | 90.00% | ||||||
Maximum | FSE Acquisition | |||||||
Business Acquisition [Line Items] | |||||||
Payments for milestones, determined by EBITDA (percent) | 100.00% | ||||||
Revolving Credit Facility | Third ARLS Agreement | Line of Credit | FSE Acquisition | |||||||
Business Acquisition [Line Items] | |||||||
Borrowings on revolving credit facility | $ 2,000 |
Business Combinations - Conside
Business Combinations - Consideration Transferred (Details) - USD ($) $ in Thousands | Sep. 17, 2019 | Sep. 30, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Business Combination, Consideration Transferred [Abstract] | ||||
Goodwill | $ 25,188 | $ 7,576 | $ 8,045 | |
FSE Acquisition | ||||
Business Combination, Consideration Transferred [Abstract] | ||||
Initial cash paid, net of working capital adjustment | $ 34,000 | |||
Contingent consideration at fair value | 4,700 | |||
Total consideration | 38,700 | |||
Net assets at fair value | 21,025 | |||
Goodwill | $ 17,675 |
Business Combinations - Recogni
Business Combinations - Recognized Identifiable Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Sep. 17, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | ||||
Goodwill | $ 25,188 | $ 7,576 | $ 8,045 | |
FSE Acquisition | ||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | ||||
Accounts receivable | $ 6,567 | |||
Inventories | 3,140 | |||
Prepaid and other current assets | 353 | |||
Property, plant and equipment | 503 | |||
Other long-term assets | 1,650 | |||
Definite-lived intangible assets | 17,190 | |||
Goodwill | 17,675 | |||
Accounts payable and accrued liabilities | (7,204) | |||
Other long-term liabilities | (1,174) | |||
Total consideration | $ 38,700 |
Business Combinations - Pro For
Business Combinations - Pro Forma Information (Details) - FSE Acquisition - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Business Acquisition, Pro Forma Information [Abstract] | ||||
Revenue | $ 235,470 | $ 232,964 | $ 747,280 | $ 699,245 |
Net income | $ 8,761 | $ 12,818 | $ 29,068 | $ 36,899 |
Basic earnings per share (in dollars per share) | $ 0.29 | $ 0.42 | $ 0.95 | $ 1.22 |
Diluted earnings per share (in dollars per share) | $ 0.28 | $ 0.42 | $ 0.94 | $ 1.21 |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Revenue from Contract with Customer [Abstract] | ||
Accounts receivable, net of allowance for doubtful accounts | $ 153,190 | $ 134,624 |
Fair Value Measurement - Fair V
Fair Value Measurement - Fair Values of Our Derivative Assets and Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Derivative equity | $ 515 | $ 0 | $ 193 | $ 0 | |
Accrued liabilities | 1,000 | 1,000 | |||
Foreign exchange contract | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Derivative equity | 303 | $ 496 | |||
Recurring | Foreign exchange contract | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Derivative assets | 303 | 303 | 496 | ||
Derivative equity | 303 | 496 | |||
Recurring | Foreign exchange contract | Level 1 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Derivative assets | 0 | 0 | 0 | ||
Derivative equity | 0 | 0 | |||
Recurring | Foreign exchange contract | Level 2 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Derivative assets | 303 | 303 | 496 | ||
Derivative equity | 303 | 496 | |||
Recurring | Foreign exchange contract | Level 3 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Derivative assets | 0 | 0 | 0 | ||
Derivative equity | 0 | 0 | |||
Recurring | Interest swap contract | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Derivative assets | 353 | 353 | 1,131 | ||
Derivative liabilities | 1,318 | 1,318 | 0 | ||
Recurring | Interest swap contract | Level 1 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Derivative assets | 0 | 0 | 0 | ||
Derivative liabilities | 0 | 0 | 0 | ||
Recurring | Interest swap contract | Level 2 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Derivative assets | 353 | 353 | 1,131 | ||
Derivative liabilities | 1,318 | 1,318 | 0 | ||
Recurring | Interest swap contract | Level 3 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Derivative assets | 0 | 0 | 0 | ||
Derivative liabilities | $ 0 | $ 0 | $ 0 |
Fair Value Measurement - Carryi
Fair Value Measurement - Carrying Amounts and Fair Values of Our Long-Term Debt Obligations (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Current portion of long-term debt | $ 3,335 | $ 9,102 |
Long-term debt | 154,950 | 154,656 |
Term Loan Facility | Secured Debt | ||
Debt Instrument [Line Items] | ||
Carrying Amount | 158,285 | 163,758 |
Fair Value | 158,285 | $ 161,759 |
Current portion of long-term debt | $ 3,300 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) $ in Millions | Sep. 30, 2019USD ($) |
Interest swap contract | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Outstanding debt covered by swaps | $ 80 |
FSE Acquisition | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Contingent consideration | 4.7 |
Level 3 | FSE Acquisition | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Contingent consideration | $ 4.7 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Stockholders Equity Note Disclosure [Line Items] | ||||
Common stock, shares authorized (in shares) | 60,000,000 | 60,000,000 | 60,000,000 | |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 | |
Common Stock, Shares, Outstanding | 30,581,274 | 30,581,274 | 30,512,843 | |
Common stock, shares issued (in shares) | 30,581,274 | 30,581,274 | 30,512,843 | |
Preferred stock, shares authorized (in shares) | 5,000,000 | 5,000,000 | 5,000,000 | |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 | |
Preferred stock, shares outstanding (in shares) | 0 | 0 | 0 | |
Restricted Stock | ||||
Stockholders Equity Note Disclosure [Line Items] | ||||
Antidilutive stock excluded from earning per share (in shares) | 0 | 17,712 | 0 |
Stockholders' Equity - Diluted
Stockholders' Equity - Diluted Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Equity [Abstract] | ||||
Net income | $ 8,520 | $ 12,583 | $ 26,827 | $ 35,631 |
Weighted average number of common shares outstanding (in shares) | 30,581 | 30,219 | 30,547 | 30,219 |
Dilutive effect of restricted stock grants after application of the treasury stock method (in shares) | 271 | 419 | 282 | 356 |
Dilutive shares outstanding (in shares) | 30,852 | 30,638 | 30,829 | 30,575 |
Basic earnings per share (in dollars per share) | $ 0.28 | $ 0.42 | $ 0.88 | $ 1.18 |
Diluted earnings per share (in dollars per share) | $ 0.28 | $ 0.41 | $ 0.87 | $ 1.17 |
Stockholders' Equity - Changes
Stockholders' Equity - Changes in Stockholder's Equity (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2019 | Jan. 01, 2019 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Beginning balance | $ 136,502 | $ 126,651 | $ 115,038 | $ 94,541 | $ 86,400 | $ 74,742 | $ 115,038 | |
Beginning balance (in shares) | 30,512,843 | 30,512,843 | ||||||
Share-based compensation expense | 721 | 719 | $ 761 | 780 | 844 | 673 | $ 2,201 | |
Total comprehensive income | $ 2,522 | 9,132 | 10,924 | 9,994 | 7,297 | 10,985 | $ 22,578 | |
Ending balance (in shares) | 30,581,274 | 30,581,274 | ||||||
Ending balance | $ 139,745 | 136,502 | 126,651 | 105,315 | 94,541 | 86,400 | $ 139,745 | |
Common Stock | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Beginning balance | $ 319 | $ 318 | $ 318 | $ 304 | $ 304 | $ 304 | $ 318 | |
Beginning balance (in shares) | 30,581,000 | 30,513,000 | 30,513,000 | 30,219,000 | 30,219,000 | 30,219,000 | 30,513,000 | |
Share-based compensation expense (in shares) | 68,000 | 68,000 | ||||||
Share-based compensation expense | $ 1 | $ 1 | ||||||
Ending balance (in shares) | 30,581,000 | 30,581,000 | 30,513,000 | 30,219,000 | 30,219,000 | 30,219,000 | 30,581,000 | |
Ending balance | $ 319 | $ 319 | $ 318 | $ 304 | $ 304 | $ 304 | $ 319 | |
Treasury Stock | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Beginning balance | (10,245) | (10,245) | (10,245) | (9,114) | (9,114) | (9,114) | (10,245) | |
Ending balance | (10,245) | (10,245) | (10,245) | (9,114) | (9,114) | (9,114) | (10,245) | |
Additional Paid In Capital | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Beginning balance | 244,486 | 243,768 | 243,007 | 241,387 | 240,543 | 239,870 | 243,007 | |
Share-based compensation expense | 721 | 718 | 761 | 780 | 844 | 673 | 2,200 | |
Ending balance | 245,207 | 244,486 | 243,768 | 242,167 | 241,387 | 240,543 | 245,207 | |
Retained Deficit | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Beginning balance | (52,336) | (59,513) | (70,571) | (92,035) | (105,230) | (115,083) | (70,571) | |
Share-based compensation expense | 0 | |||||||
Total comprehensive income | 8,520 | 7,177 | 11,130 | 12,583 | 13,195 | 9,853 | 26,827 | |
Ending balance | (43,816) | (52,336) | (59,513) | (79,452) | (92,035) | (105,230) | (43,816) | |
Accumulated Other Comp. Loss | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Beginning balance | (45,722) | (47,677) | (47,471) | (46,001) | (40,103) | (41,235) | (47,471) | |
Total comprehensive income | (5,998) | 1,955 | (206) | (2,589) | (5,898) | 1,132 | (4,249) | |
Ending balance | $ (51,720) | $ (45,722) | $ (47,677) | $ (48,590) | $ (46,001) | $ (40,103) | $ (51,720) | |
Adoption of ASU 842 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Cumulative effect of adoption of Topic 842 | $ (72) | |||||||
Adoption of ASU 842 | Retained Deficit | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Cumulative effect of adoption of Topic 842 | $ (72) |
Share-Based Compensation - Summ
Share-Based Compensation - Summary of Information about Restricted Stock Grants Outstanding (Details) - USD ($) shares in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||
Unearned compensation | $ 1,600,000 | |
Restricted Stock | ||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||
Shares | 75 | 64 |
Restricted Stock | October 2016 | ||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||
Shares | 411 | |
Unearned compensation | $ 51,200 | |
Remaining Periods (in months) | 1 year | |
Restricted Stock | October 2016 | Year 1 | ||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||
Restricted stock vesting installment (as a percent) | 33.33% | |
Restricted Stock | October 2016 | Year 2 | ||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||
Restricted stock vesting installment (as a percent) | 33.33% | |
Restricted Stock | October 2016 | Year 3 | ||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||
Restricted stock vesting installment (as a percent) | 33.33% | |
Restricted Stock | July 2017 | ||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||
Shares | 6 | |
Unearned compensation | $ 1,300 | |
Remaining Periods (in months) | 1 year | |
Restricted Stock | July 2017 | Year 1 | ||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||
Restricted stock vesting installment (as a percent) | 33.33% | |
Restricted Stock | July 2017 | Year 2 | ||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||
Restricted stock vesting installment (as a percent) | 33.33% | |
Restricted Stock | July 2017 | Year 3 | ||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||
Restricted stock vesting installment (as a percent) | 33.33% | |
Restricted Stock | October 2017 | ||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||
Shares | 303 | |
Unearned compensation | $ 953,400 | |
Remaining Periods (in months) | 13 years | |
Restricted Stock | October 2017 | Year 1 | ||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||
Restricted stock vesting installment (as a percent) | 33.33% | |
Restricted Stock | October 2017 | Year 2 | ||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||
Restricted stock vesting installment (as a percent) | 33.33% | |
Restricted Stock | October 2017 | Year 3 | ||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||
Restricted stock vesting installment (as a percent) | 33.33% | |
Restricted Stock | October 2018 | ||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||
Shares | 382 | |
Unearned compensation | $ 1,733,300 | |
Remaining Periods (in months) | 25 years | |
Restricted Stock | October 2018 | Year 1 | ||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||
Restricted stock vesting installment (as a percent) | 33.33% | |
Restricted Stock | October 2018 | Year 2 | ||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||
Restricted stock vesting installment (as a percent) | 33.33% | |
Restricted Stock | October 2018 | Year 3 | ||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||
Restricted stock vesting installment (as a percent) | 33.33% | |
Restricted Stock | May 2019 | ||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||
Shares | 71 | |
Unearned compensation | $ 315,000 | |
Remaining Periods (in months) | 7 years |
Share-Based Compensation - Su_2
Share-Based Compensation - Summary of Information about Nonvested Restricted Stock Grants (Details) - Restricted Stock - $ / shares shares in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Nonvested Restricted Stock Shares | ||
Nonvested - beginning of year (in shares) | 760 | 787 |
Granted (in shares) | 75 | 64 |
Vested (in shares) | (68) | 0 |
Forfeited (in shares) | (21) | (16) |
Nonvested - end of period (in shares) | 746 | 835 |
Nonvested Restricted Stock Weighted-Average Grant-Date Fair Value | ||
Nonvested - beginning of year (in dollars per share) | $ 7.56 | $ 6.84 |
Granted (in dollars per share) | 7.60 | 8.41 |
Vested (in dollars per share) | 8.38 | 0 |
Forfeited (in dollars per share) | 7.48 | 7.12 |
Nonvested - end of period (in dollars per share) | $ 7.49 | $ 6.96 |
Performance Awards - Additional
Performance Awards - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||||
Unrecognized compensation expense | $ 1.6 | $ 1.6 | ||
Performance Awards | ||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||||
Compensation expense (benefit) | $ 0.4 | $ (1) | $ 1.1 | $ 1.6 |
Unrecognized compensation expense | $ 1.6 | $ 1.6 | ||
2014 Equity Incentive Plan | Performance Awards | ||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||||
Performance period | 3 years |
Performance Awards - Schedule o
Performance Awards - Schedule of Performance Activity (Details) - 2014 EIP - Performance Awards $ in Thousands | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |
Grant Amount | $ 4,608 |
Adjustments | (75) |
Forfeitures | (196) |
Adjusted Award Value | 4,337 |
November 2016 | |
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |
Grant Amount | 1,434 |
Adjustments | 0 |
Forfeitures | (88) |
Adjusted Award Value | $ 1,346 |
Remaining Periods (in Months) to Vesting | 1 year |
November 2017 | |
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |
Grant Amount | $ 1,584 |
Adjustments | (26) |
Forfeitures | (53) |
Adjusted Award Value | $ 1,505 |
Remaining Periods (in Months) to Vesting | 13 years |
November 2018 | |
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |
Grant Amount | $ 1,590 |
Adjustments | (49) |
Forfeitures | (55) |
Adjusted Award Value | $ 1,486 |
Remaining Periods (in Months) to Vesting | 25 years |
Inventories (Detail)
Inventories (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 64,344 | $ 66,965 |
Work in process | 12,916 | 12,333 |
Finished goods | 12,926 | 13,061 |
Inventories | $ 90,186 | $ 92,359 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Changes in Carrying Amounts of Goodwill (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019 | Dec. 31, 2018 | |
Goodwill [Roll Forward] | ||
Balance — Beginning | $ 7,576 | $ 8,045 |
FSE Acquisition | 17,675 | 0 |
Currency translation adjustment | (63) | (469) |
Balance — Ending | $ 25,188 | $ 7,576 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Summary of Intangible Assets (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Dec. 31, 2018 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 39,442 | $ 22,368 |
Accumulated Amortization | (10,601) | (9,568) |
Net Carrying Amount | $ 28,841 | 12,800 |
Trademarks/Tradenames | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted- Average Amortization Period | 22 years | |
Gross Carrying Amount | $ 11,529 | 8,346 |
Accumulated Amortization | (4,144) | (3,888) |
Net Carrying Amount | $ 7,385 | 4,458 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted- Average Amortization Period | 15 years | |
Gross Carrying Amount | $ 15,083 | 14,022 |
Accumulated Amortization | (6,350) | (5,680) |
Net Carrying Amount | $ 8,733 | 8,342 |
Technical Know-how | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted- Average Amortization Period | 5 years | |
Gross Carrying Amount | $ 7,810 | 0 |
Accumulated Amortization | (65) | 0 |
Net Carrying Amount | $ 7,745 | 0 |
Covenant not to compete | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted- Average Amortization Period | 5 years | |
Gross Carrying Amount | $ 5,020 | 0 |
Accumulated Amortization | (42) | 0 |
Net Carrying Amount | $ 4,978 | $ 0 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | Sep. 17, 2019 | Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||
Amortization expense | $ 437 | $ 321 | $ 1,080 | $ 980 | |||
Goodwill [Line Items] | |||||||
FSE Acquisition | 17,675 | $ 0 | |||||
Goodwill | 25,188 | 25,188 | $ 7,576 | $ 8,045 | |||
Global Seating | |||||||
Goodwill [Line Items] | |||||||
Goodwill | 5,100 | 5,100 | |||||
Electrical Systems | |||||||
Goodwill [Line Items] | |||||||
Goodwill | $ 20,100 | 20,100 | |||||
FSE Acquisition | |||||||
Goodwill [Line Items] | |||||||
FSE Acquisition | $ 17,700 | ||||||
Goodwill | $ 17,675 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Intangible Asset Amortization Expense (Details) $ in Thousands | Sep. 30, 2019USD ($) |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |
2019 | $ 2,112 |
2020 | 3,987 |
2021 | 3,987 |
2022 | 3,987 |
2023 | 3,987 |
2024 | $ 3,238 |
Leases - Additional Information
Leases - Additional Information (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Lessee, Lease, Description [Line Items] | |
Operating leases | 4 years 8 months |
Renewal term | 5 years |
Termination option | 1 year |
Operating lease not yet commenced, liability | $ 10.6 |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Operating leases | 1 year |
Operating lease not yet commenced, term of contract | 5 years |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Operating leases | 8 years |
Operating lease not yet commenced, term of contract | 7 years |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Leases [Abstract] | ||
Operating lease cost | $ 1,858 | $ 5,305 |
Amortization of right-of-use assets | 92 | 252 |
Interest on lease liabilities | 16 | 46 |
Total finance lease cost | 108 | 298 |
Short-term lease cost | 1,793 | 5,557 |
Total lease expense | $ 3,759 | $ 11,160 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Leases [Abstract] | |
Operating cash flows from operating leases | $ 5,200 |
Financing cash flows from finance leases | $ 331 |
Leases - Balance Sheet Classifi
Leases - Balance Sheet Classification of Lease Assets and Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Operating Lease, Assets And Liabilities, Lessee [Abstract] | |||
Operating lease assets | $ 23,333 | $ 21,200 | $ 0 |
Other current liabilities | 5,485 | 0 | |
Operating lease liabilities | 19,192 | $ 0 | |
Present value of lease liabilities | 24,677 | $ 22,200 | |
Finance Lease, Assets And Liabilities, Lessee [Abstract] | |||
Right-of-use assets | 1,118 | ||
Accumulated depreciation | (250) | ||
Right-of-use assets, net | 868 | ||
Current liabilities | 374 | ||
Non-current liabilities | 465 | ||
Total finance lease liabilities | $ 839 | ||
Weighted Average Remaining Lease Term [Abstract] | |||
Operating leases | 4 years 8 months | ||
Finance leases | 3 years | ||
Leases, Weighted Average Discount Rate [Abstract] | |||
Operating leases | 11.00% | ||
Finance leases | 7.20% | ||
Before Adoption | |||
Operating Lease, Assets And Liabilities, Lessee [Abstract] | |||
Operating lease assets | $ 20,200 | ||
After Adoption | |||
Operating Lease, Assets And Liabilities, Lessee [Abstract] | |||
Operating lease assets | 6,400 | ||
Finance Lease, Assets And Liabilities, Lessee [Abstract] | |||
Accumulated depreciation | $ (3,300) |
Leases - Maturities of Operati
Leases - Maturities of Operating and Financing Lease Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Jan. 01, 2019 |
Operating | ||
2019 | $ 1,920 | |
2020 | 7,671 | |
2021 | 7,285 | |
2022 | 6,597 | |
2023 | 2,597 | |
Thereafter | 5,751 | |
Total lease payments | 31,821 | |
Less: Imputed interest | (7,144) | |
Present value of lease liabilities | 24,677 | $ 22,200 |
Financing | ||
2019 | 114 | |
2020 | 387 | |
2021 | 236 | |
2022 | 115 | |
2023 | 53 | |
Thereafter | 14 | |
Total lease payments | 919 | |
Less: Imputed interest | (80) | |
Present value of lease liabilities | 839 | |
Total | ||
2019 | 2,034 | |
2020 | 8,058 | |
2021 | 7,521 | |
2022 | 6,712 | |
2023 | 2,650 | |
Thereafter | 5,765 | |
Total lease payments | 32,740 | |
Less: Imputed interest | (7,224) | |
Present value of lease liabilities | $ 25,516 |
Leases - Future Minimum Annual
Leases - Future Minimum Annual Rental Commitments (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
2019 | $ 7,558 |
2020 | 6,492 |
2021 | 5,960 |
2022 | 5,286 |
2023 | 1,676 |
Thereafter | $ 2,501 |
Commitments and Contingencies -
Commitments and Contingencies - Summary of Warranty Provision (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward] | |
Balance - Beginning of the year | $ 3,911 |
Provision for new warranty claims | 1,427 |
Change in provision for preexisting warranty claims | 205 |
Deduction for payments made | (2,098) |
Currency translation adjustment | (33) |
Balance - End of period | $ 3,412 |
Commitments and Contingencies_2
Commitments and Contingencies - Schedule of Minimum Principal Payments Due on Long-term Debt (Details) $ in Thousands | Sep. 30, 2019USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Mandatory prepayment pursuant to excess cash flow | $ 4,200 |
2019 | 2,187 |
2020 | 4,375 |
2021 | 4,375 |
2022 | 4,375 |
2023 | 146,788 |
Thereafter | $ 0 |
Debt and Credit Facilities - Su
Debt and Credit Facilities - Summary of Debt (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Current portion of long-term debt | $ 3,335 | $ 9,102 |
Long-term debt | 154,950 | 154,656 |
Term Loan Facility | Secured Debt | ||
Debt Instrument [Line Items] | ||
Long-term debt | 158,285 | $ 163,758 |
Current portion of long-term debt | 3,300 | |
Deferred financing cost, current | 500 | |
Deferred financing cost, noncurrent | 1,300 | |
Debt discount, noncurrent | $ 1,400 |
Debt and Credit Facilities - Ad
Debt and Credit Facilities - Additional Information (Detail) - USD ($) | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 18, 2019 | Dec. 31, 2018 | Apr. 12, 2017 | |
Term Loan Facility | Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Secured term loan facility | $ 175,000,000 | |||
Term Loan Facility | Secured Debt | ||||
Debt Instrument [Line Items] | ||||
Debt instrument fee | $ 1,800,000 | |||
Debt instrument discount | 2,000,000 | |||
Long-term debt | 158,285,000 | $ 163,758,000 | ||
Third ARLS Agreement | Line of Credit | Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Secured term loan facility | $ 90,000,000 | |||
Debt instrument fee | 600,000 | 700,000 | ||
Outstanding borrowings | 0 | |||
Availability of borrowing | 70,500,000 | |||
Capacity available for inventory | $ 7,000,000 | |||
Capacity available for inventory, basis point premium | 1.00% | |||
Maximum borrowing capacity, incremental commitments | $ 20,000,000 | |||
Third ARLS Agreement | Line of Credit | Letter of Credit | ||||
Debt Instrument [Line Items] | ||||
Outstanding borrowings | 1,600,000 | $ 1,700,000 | ||
Borrowing availability threshold | $ 5,000,000 | |||
Borrowing availability threshold (as a percent) | 10.00% |
Debt and Credit Facilities - Ma
Debt and Credit Facilities - Margin for Borrowings under Revolving Credit Facility (Details) - Revolving Credit Facility | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Minimum | III | |
Line of Credit Facility [Line Items] | |
Availability of borrowing | $ 30,000,000 |
Minimum | II | |
Line of Credit Facility [Line Items] | |
Availability of borrowing | 15,000,000 |
Maximum | II | |
Line of Credit Facility [Line Items] | |
Availability of borrowing | 30,000,000 |
Maximum | I | |
Line of Credit Facility [Line Items] | |
Availability of borrowing | $ 15,000,000 |
Tranche A | Base Rate | III | |
Line of Credit Facility [Line Items] | |
Basis spread (as a percent) | 0.50% |
Tranche A | Base Rate | II | |
Line of Credit Facility [Line Items] | |
Basis spread (as a percent) | 0.75% |
Tranche A | Base Rate | I | |
Line of Credit Facility [Line Items] | |
Basis spread (as a percent) | 1.00% |
Tranche A | LIBOR | III | |
Line of Credit Facility [Line Items] | |
Basis spread (as a percent) | 1.50% |
Tranche A | LIBOR | II | |
Line of Credit Facility [Line Items] | |
Basis spread (as a percent) | 1.75% |
Tranche A | LIBOR | I | |
Line of Credit Facility [Line Items] | |
Basis spread (as a percent) | 2.00% |
Tranche B | Base Rate | III | |
Line of Credit Facility [Line Items] | |
Basis spread (as a percent) | 1.50% |
Tranche B | Base Rate | II | |
Line of Credit Facility [Line Items] | |
Basis spread (as a percent) | 1.75% |
Tranche B | Base Rate | I | |
Line of Credit Facility [Line Items] | |
Basis spread (as a percent) | 2.00% |
Tranche B | LIBOR | III | |
Line of Credit Facility [Line Items] | |
Basis spread (as a percent) | 2.50% |
Tranche B | LIBOR | II | |
Line of Credit Facility [Line Items] | |
Basis spread (as a percent) | 2.75% |
Tranche B | LIBOR | I | |
Line of Credit Facility [Line Items] | |
Basis spread (as a percent) | 3.00% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2019 | Dec. 31, 2018 | |
Operating Loss Carryforwards [Line Items] | ||
Unrecognized tax benefits | $ 0.5 | $ 0.5 |
Accrued unrecognized tax benefits interest and penalties | 0.3 | $ 0.3 |
Income tax expense (benefit), attributable to tax cuts and jobs act | (2.1) | |
Foreign Tax Authority | ||
Operating Loss Carryforwards [Line Items] | ||
Measurement period adjustment, income tax expense (benefit) | (1.3) | |
State and Local Jurisdiction | ||
Operating Loss Carryforwards [Line Items] | ||
Measurement period adjustment, income tax expense (benefit) | $ (0.8) |
Segment Reporting - Additional
Segment Reporting - Additional Information (Details) $ in Millions | 3 Months Ended | 9 Months Ended | |
Dec. 31, 2018segment | Sep. 30, 2019segment | Sep. 17, 2019USD ($) | |
Segment Reporting Information [Line Items] | |||
Reportable segments | segment | 2 | 2 | |
FSE Acquisition | Corporate/ Other | |||
Segment Reporting Information [Line Items] | |||
Administrative costs, business acquisition | $ | $ 0.9 |
Segment Reporting (Detail)
Segment Reporting (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Segment Reporting Information [Line Items] | ||||
Revenues | $ 225,399 | $ 225,010 | $ 711,753 | $ 674,135 |
Gross Profit | 31,204 | 32,177 | 99,546 | 98,585 |
Selling, General & Administrative Expenses | 17,531 | 15,613 | 48,976 | 45,177 |
Amortization Expense | 437 | 321 | 1,080 | 980 |
Operating Income | 13,236 | 16,243 | 49,490 | 52,428 |
Capital and Other Expenditures [Abstract] | ||||
Capital Expenditures | 6,197 | 4,664 | 18,915 | 9,823 |
Depreciation Expense | 3,482 | 6,861 | 9,896 | 10,807 |
Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 225,399 | 225,010 | 711,753 | 674,135 |
Corporate/ Other | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | (1,762) | (4,169) | (10,303) | (9,820) |
Gross Profit | (59) | (30) | (166) | (525) |
Selling, General & Administrative Expenses | 8,458 | 6,131 | 21,563 | 16,984 |
Amortization Expense | 0 | 0 | 0 | 0 |
Operating Income | (8,517) | (6,161) | (21,729) | (17,509) |
Capital and Other Expenditures [Abstract] | ||||
Capital Expenditures | 661 | 281 | 2,274 | 1,514 |
Depreciation Expense | 670 | 3,718 | 1,940 | 2,030 |
Electrical Systems | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 131,442 | 128,216 | 417,000 | 385,704 |
Electrical Systems | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 129,710 | 125,220 | 409,471 | 378,649 |
Gross Profit | 18,932 | 18,304 | 58,915 | 57,598 |
Selling, General & Administrative Expenses | 4,030 | 3,790 | 11,855 | 11,323 |
Amortization Expense | 303 | 186 | 676 | 559 |
Operating Income | 14,599 | 14,328 | 46,384 | 45,716 |
Capital and Other Expenditures [Abstract] | ||||
Capital Expenditures | 4,472 | 3,155 | 13,794 | 6,011 |
Depreciation Expense | 1,771 | 1,723 | 4,770 | 5,203 |
Electrical Systems | Intersegment Revenues | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 1,732 | 2,996 | 7,529 | 7,055 |
Global Seating | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 95,719 | 100,963 | 305,056 | 298,251 |
Global Seating | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 95,689 | 99,790 | 302,282 | 295,486 |
Gross Profit | 12,331 | 13,903 | 40,797 | 41,512 |
Selling, General & Administrative Expenses | 5,043 | 5,692 | 15,558 | 16,870 |
Amortization Expense | 134 | 135 | 404 | 421 |
Operating Income | 7,154 | 8,076 | 24,835 | 24,221 |
Capital and Other Expenditures [Abstract] | ||||
Capital Expenditures | 1,064 | 1,228 | 2,847 | 2,298 |
Depreciation Expense | 1,041 | 1,420 | 3,186 | 3,574 |
Global Seating | Intersegment Revenues | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 30 | $ 1,173 | $ 2,774 | $ 2,765 |
Derivative Contracts - Addition
Derivative Contracts - Additional Information (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2019 | Jun. 30, 2017 | |
Foreign exchange contract | Minimum | ||
Derivative [Line Items] | ||
Derivative term of contracts | 1 month | |
Foreign exchange contract | Maximum | ||
Derivative [Line Items] | ||
Derivative term of contracts | 18 months | |
Interest swap contract | ||
Derivative [Line Items] | ||
Outstanding debt covered by swaps | $ 80 | |
Interest swap contract | Term Loan Facility | Secured Debt | ||
Derivative [Line Items] | ||
Outstanding debt covered by swaps | $ 80 | |
Derivative floor rate (as a percent) | 2.07% | |
Derivative all in rate (as a percent) | 8.07% |
Derivative Contracts - Notional
Derivative Contracts - Notional Amount of Foreign Exchange Contracts (Details) - Foreign exchange contract - Commitments to buy or sell currencies - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Derivative [Line Items] | ||
U.S. $ Equivalent | $ 4,705 | $ 22,371 |
U.S. $ Equivalent Fair Value | $ 5,008 | $ 22,867 |
Derivative Contracts - Fair Val
Derivative Contracts - Fair Value and Presentation in Consolidated Balance Sheets for Derivatives (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Derivative [Line Items] | |||||
Derivative equity | $ 515 | $ 0 | $ 193 | $ 0 | |
Foreign exchange contract | |||||
Derivative [Line Items] | |||||
Derivative equity | 303 | $ 496 | |||
Foreign exchange contract | Other current assets | Not Designated as Hedging Instrument | |||||
Derivative [Line Items] | |||||
Derivative assets | 303 | 303 | 496 | ||
Interest swap contract | Accrued liabilities | |||||
Derivative [Line Items] | |||||
Derivative liabilities | 1,318 | 1,318 | 0 | ||
Interest swap contract | Other assets, net | Not Designated as Hedging Instrument | |||||
Derivative [Line Items] | |||||
Derivative assets | 353 | 353 | 1,131 | ||
Fair Value, Recurring | Foreign exchange contract | |||||
Derivative [Line Items] | |||||
Derivative assets | 303 | 303 | 496 | ||
Derivative equity | 303 | 496 | |||
Fair Value, Recurring | Interest swap contract | |||||
Derivative [Line Items] | |||||
Derivative assets | 353 | 353 | 1,131 | ||
Derivative liabilities | 1,318 | 1,318 | 0 | ||
Level 2 | Fair Value, Recurring | Foreign exchange contract | |||||
Derivative [Line Items] | |||||
Derivative assets | 303 | 303 | 496 | ||
Derivative equity | 303 | 496 | |||
Level 2 | Fair Value, Recurring | Interest swap contract | |||||
Derivative [Line Items] | |||||
Derivative assets | 353 | 353 | 1,131 | ||
Derivative liabilities | $ 1,318 | $ 1,318 | $ 0 |
Derivative Contracts - Effect o
Derivative Contracts - Effect of Derivative Instruments on Consolidated Statements of Operations for Derivatives not Designated as Hedging Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Location of (Loss) Gain Recognized in Income on Derivatives | $ (2,092) | $ 2,842 | ||
Foreign exchange contract | Cost of Revenues | Not Designated as Hedging Instrument | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Location of (Loss) Gain Recognized in Income on Derivatives | $ 0 | $ 334 | 4 | 767 |
Interest swap contract | Interest and Other Expense | Not Designated as Hedging Instrument | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Location of (Loss) Gain Recognized in Income on Derivatives | $ (236) | $ 350 | $ (1,891) | $ 1,950 |
Other Comprehensive Loss - Afte
Other Comprehensive Loss - After-tax Changes in Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Beginning balance | $ 136,502 | $ 94,541 | $ 115,038 | $ 74,742 | $ 74,742 |
Net current period change | (3,048) | (5,363) | |||
Derivative Instrument | (515) | 0 | (193) | 0 | |
Amortization of actuarial losses | (1,008) | (1,992) | |||
Ending balance | 139,745 | 105,315 | 139,745 | 105,315 | 115,038 |
Foreign currency translation adjustment | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Beginning balance | (22,847) | (17,172) | (17,172) | ||
Net current period change | (3,048) | (5,363) | |||
Derivative Instrument | 0 | 0 | |||
Amortization of actuarial losses | 0 | 0 | |||
Ending balance | (25,895) | (22,535) | (25,895) | (22,535) | (22,847) |
Derivative instruments | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Beginning balance | 496 | 0 | 0 | ||
Net current period change | 0 | 0 | |||
Derivative Instrument | (193) | 0 | |||
Amortization of actuarial losses | 0 | 0 | |||
Ending balance | 303 | 0 | 303 | 0 | 496 |
Pension and post-retirement benefits plans | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Beginning balance | (25,120) | (24,063) | (24,063) | ||
Net current period change | 0 | 0 | |||
Derivative Instrument | 0 | 0 | |||
Amortization of actuarial losses | (1,008) | (1,992) | |||
Ending balance | (26,128) | (26,055) | (26,128) | (26,055) | (25,120) |
Accumulated other comprehensive loss | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Beginning balance | (45,722) | (46,001) | (47,471) | (41,235) | (41,235) |
Ending balance | $ (51,720) | $ (48,590) | $ (51,720) | $ (48,590) | $ (47,471) |
Other Comprehensive Loss - Rela
Other Comprehensive Loss - Related Tax Effects Allocated to Each Component of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Equity [Abstract] | ||||
Amortization of actuarial losses, before tax amount | $ (2,186) | $ (1,230) | $ (380) | $ (2,500) |
Derivative instruments | (515) | (193) | ||
Cumulative translation adjustment, before tax amount | (3,388) | (1,529) | (3,048) | (5,363) |
Total other comprehensive income (loss), before tax amount | (6,089) | (2,759) | (3,621) | (7,863) |
Amortization of actuarial losses, tax | 91 | 170 | (628) | 508 |
Derivative instrument, tax | 0 | 0 | ||
Cumulative translation adjustment, tax | 0 | 0 | 0 | 0 |
Total other comprehensive income (loss), tax | 91 | 170 | (628) | 508 |
Amortization of actuarial losses, after tax amount | (2,095) | (1,060) | (1,008) | (1,992) |
Derivative instrument, after tax amount | (515) | 0 | (193) | 0 |
Cumulative translation adjustment, after tax amount | (3,388) | (1,529) | (3,048) | (5,363) |
Total other comprehensive income (loss) | $ (5,998) | $ (2,589) | $ (4,249) | $ (7,355) |
Pension and Other Post-Retire_3
Pension and Other Post-Retirement Benefit Plans (Detail) - Pension Plan - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
U.S. Pension Plans and Other Post-Retirement Benefit Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Interest cost | $ 217 | $ 418 | $ 1,107 | $ 1,254 |
Expected return on plan assets | (470) | (787) | (1,794) | (2,360) |
Amortization of prior service cost | 23 | 2 | 2,517 | 5 |
Recognized actuarial loss | 75 | 69 | 262 | 206 |
Net cost (benefit) | (155) | (298) | 2,092 | (895) |
Non-U.S. Pension Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Interest cost | 268 | 265 | 831 | 821 |
Expected return on plan assets | (268) | (310) | (834) | (960) |
Amortization of prior service cost | 12 | 0 | 36 | 0 |
Recognized actuarial loss | 129 | 126 | 397 | 393 |
Net cost (benefit) | $ 141 | $ 81 | $ 430 | $ 254 |
Pension and Other Post-Retire_4
Pension and Other Post-Retirement Benefit Plans - Additional Information (Detail) $ in Millions | 9 Months Ended |
Sep. 30, 2019USD ($)plan | |
Retirement Benefits [Abstract] | |
Number of defined benefit pension plans | plan | 2 |
Payouts of benefits | $ 7.8 |
Non-cash settlement charge | 2.5 |
Expected contribution to pension plans and post-retirement benefit plans | 1.7 |
Contributions made to pension plans | $ 1.4 |