Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2014 | Apr. 02, 2014 | |
Document And Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 31-Mar-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Entity Registrant Name | 'ALTRA INDUSTRIAL MOTION CORP. | ' |
Entity Central Index Key | '0001374535 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 27,067,409 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $61,849 | $63,604 |
Trade receivables, less allowance for doubtful accounts of $2,479 and $2,245 at March 31, 2014 and December 31, 2013, respectively | 120,673 | 109,084 |
Inventories | 139,727 | 143,665 |
Deferred income taxes | 9,736 | 9,754 |
Income tax receivable | 1,823 | 5,032 |
Prepaid expenses and other current assets | 17,108 | 18,066 |
Total current assets | 350,916 | 349,205 |
Property, plant and equipment, net | 156,134 | 157,535 |
Intangible assets, net | 116,648 | 118,768 |
Goodwill | 105,217 | 104,339 |
Deferred income taxes | 926 | 934 |
Other non-current assets, net | 4,651 | 4,895 |
Total assets | 734,492 | 735,676 |
Current liabilities: | ' | ' |
Accounts payable | 52,452 | 51,180 |
Accrued payroll | 22,446 | 23,983 |
Accruals and other current liabilities | 36,180 | 34,979 |
Deferred income taxes | 45 | 44 |
Income tax payable | 13,187 | 12,963 |
Current portion of long-term debt | 17,784 | 16,924 |
Total current liabilities | 142,094 | 140,073 |
Long-term debt - less current portion and net of unaccreted discount | 249,147 | 261,348 |
Deferred income taxes | 53,868 | 53,813 |
Pension liabilities | 7,890 | 8,025 |
Long-term taxes payable | 755 | 1,038 |
Other long-term liabilities | 1,026 | 1,055 |
Redeemable non-controlling interest | 1,028 | 991 |
Commitment and Contingencies (See Note 17) | ' | ' |
Stockholders' equity: | ' | ' |
Common stock ($0.001 par value, 90,000,000 shares authorized, 26,836,964 and 26,819,795 issued and outstanding at March 31, 2014 and December 31, 2013, respectively) | 27 | 27 |
Additional paid-in capital | 155,213 | 154,471 |
Retained earnings | 141,889 | 133,231 |
Accumulated other comprehensive loss | -18,445 | -18,396 |
Total stockholders' equity | 278,684 | 269,333 |
Total liabilities, redeemable non-controlling interest and stockholders' equity | $734,492 | $735,676 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Statement Of Financial Position [Abstract] | ' | ' |
Allowance for doubtful accounts | $2,479 | $2,245 |
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 90,000,000 | 90,000,000 |
Common stock, shares issued | 26,836,964 | 26,819,795 |
Common stock, shares outstanding | 26,836,964 | 26,819,795 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 30, 2013 |
Income Statement [Abstract] | ' | ' |
Net sales | $210,138 | $185,150 |
Cost of sales | 148,342 | 129,651 |
Gross profit | 61,796 | 55,499 |
Operating expenses: | ' | ' |
Selling, general and administrative expenses | 38,262 | 32,442 |
Research and development expenses | 3,889 | 2,934 |
Restructuring costs | ' | 320 |
Total operating expenses | 42,151 | 35,696 |
Income from operations | 19,645 | 19,803 |
Other non-operating income and expense: | ' | ' |
Interest expense, net | 3,019 | 2,605 |
Other non-operating expense (income), net | 534 | -47 |
Total other non-operating income expense, net | 3,553 | 2,558 |
Income before income taxes | 16,092 | 17,245 |
Provision for income taxes | 4,729 | 5,386 |
Net income | 11,363 | 11,859 |
Net loss attributable to non-controlling interest | 2 | 21 |
Net income attributable to Altra Industrial Motion Corp. | $11,365 | $11,880 |
Weighted average shares, basic | 26,733 | 26,733 |
Weighted average shares, diluted | 27,444 | 26,767 |
Net income per share: | ' | ' |
Basic net income attributable to Altra Industrial Motion Corp. | $0.43 | $0.44 |
Diluted net income attributable to Altra Industrial Motion Corp. | $0.41 | $0.44 |
Cash dividend declared | $0.10 | $0.08 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statement of Comprehensive Income (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 30, 2013 |
Statement Of Income And Comprehensive Income [Abstract] | ' | ' |
Net income | $11,363 | $11,859 |
Other Comprehensive income (loss): | ' | ' |
Foreign currency translation adjustment | -54 | -6,883 |
Change in fair value of interest rate swap, net of tax | 5 | ' |
Other comprehensive loss | -49 | -6,883 |
Comprehensive income | 11,314 | 4,976 |
Comprehensive income attributable to noncontrolling interest | 37 | 21 |
Comprehensive income attributable to Altra Industrial Motion Corp. | $11,351 | $4,997 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 30, 2013 |
Cash flows from operating activities | ' | ' |
Net income | $11,363 | $11,859 |
Adjustments to reconcile net income to net cashflows: | ' | ' |
Depreciation | 5,845 | 5,220 |
Amortization of intangible assets | 2,219 | 1,613 |
Amortization of deferred financing costs | 232 | 189 |
Loss on foreign currency, net | 305 | 110 |
Amortization of inventory fair value adjustment | 2,151 | ' |
Accretion of debt discount, net | 823 | 760 |
Loss on disposal / impairment of fixed assets | 212 | ' |
Stock-based compensation | 874 | 849 |
Changes in assets and liabilities: | ' | ' |
Trade receivables | -11,957 | -15,063 |
Inventories | 1,439 | -663 |
Accounts payable and accrued liabilities | 4,944 | 6,154 |
Other current assets and liabilities | 829 | -833 |
Other operating assets and liabilities | -206 | -900 |
Net cash from operating activities | 19,073 | 9,295 |
Cash flows from investing activities | ' | ' |
Purchase of property, plant and equipment | -5,617 | -4,499 |
Net cash from investing activities | -5,617 | -4,499 |
Cash flows from financing activities | ' | ' |
Payments on term loan facility | -6,261 | -1,875 |
Payments on revolving credit facility | -6,165 | -19,304 |
Dividend payment | -2,696 | ' |
Proceeds from equipment loan | 582 | 1,170 |
Shares surrendered for tax withholding | -132 | ' |
Payments on mortgages and other | -199 | -278 |
Payments on capital leases | ' | -9 |
Net cash from financing activities | -14,871 | -20,296 |
Effect of exchange rate changes on cash and cash equivalents | -340 | -3,483 |
Net change in cash and cash equivalents | -1,755 | -18,983 |
Cash and cash equivalents at beginning of year | 63,604 | 85,154 |
Cash and cash equivalents at end of period | 61,849 | 66,171 |
Cash paid during the period for: | ' | ' |
Interest | 2,715 | 2,583 |
Income taxes | $1,571 | $1,899 |
Consolidated_Statement_of_Stoc
Consolidated Statement of Stockholders' Equity (USD $) | Total | Common Stock [Member] | Additional Paid in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive (Loss) [Member] | Redeemable Non-Controlling Interest [Member] |
In Thousands, except Share data | ||||||
Beginning Balance at Dec. 31, 2012 | $232,012 | $27 | $152,188 | $103,200 | ($23,403) | $1,239 |
Beginning Balance, Shares at Dec. 31, 2012 | ' | 26,724 | ' | ' | ' | ' |
Stock-based compensation and vesting of restricted stock | 849 | ' | 849 | ' | ' | ' |
Stock-based compensation and vesting of restricted stock, Shares | ' | 18 | ' | ' | ' | ' |
Net income attributable to Altra Industrial Motion Corp. | 11,880 | ' | ' | 11,880 | ' | ' |
Net loss attributable to non-controlling interest | -21 | ' | ' | ' | ' | -21 |
Dividends declared | -2,152 | ' | ' | -2,152 | ' | ' |
Cumulative foreign currency translation adjustment | -6,883 | ' | ' | ' | -6,883 | ' |
Ending Balance at Mar. 30, 2013 | 235,706 | 27 | 153,037 | 112,928 | -30,286 | 1,218 |
Ending Balance, Shares at Mar. 30, 2013 | ' | 26,742 | ' | ' | ' | ' |
Beginning Balance at Dec. 31, 2013 | 269,333 | 27 | 154,471 | 133,231 | -18,396 | 991 |
Beginning Balance, Shares at Dec. 31, 2013 | ' | 26,820 | ' | ' | ' | ' |
Stock-based compensation and vesting of restricted stock | 742 | ' | 742 | ' | ' | ' |
Stock-based compensation and vesting of restricted stock, Shares | ' | 247 | ' | ' | ' | ' |
Net income attributable to Altra Industrial Motion Corp. | 11,365 | ' | ' | 11,365 | ' | ' |
Net loss attributable to non-controlling interest | -2 | ' | ' | ' | ' | -2 |
Dividends declared | -2,707 | ' | ' | -2,707 | ' | ' |
Change in fair value of interest rate swap | 5 | ' | ' | ' | 5 | ' |
Cumulative foreign currency translation adjustment | -54 | ' | ' | ' | -54 | 39 |
Ending Balance at Mar. 31, 2014 | $278,684 | $27 | $155,213 | $141,889 | ($18,445) | $1,028 |
Ending Balance, Shares at Mar. 31, 2014 | ' | 27,067 | ' | ' | ' | ' |
Organization_and_Nature_of_Ope
Organization and Nature of Operations | 3 Months Ended |
Mar. 31, 2014 | |
Accounting Policies [Abstract] | ' |
Organization and Nature of Operations | ' |
1. Organization and Nature of Operations | |
Headquartered in Braintree, Massachusetts, Altra Industrial Motion Corp. (the “Company”), through its wholly-owned subsidiary Altra Power Transmissions, Inc. (“APT”), is a leading multi-national designer, producer and marketer of a wide range of electro-mechanical power transmission products. The Company brings together strong brands covering over 40 product lines with production facilities in eleven countries. Altra’s leading brands include Ameridrives Couplings, Bauer Gear Motor, Bibby Turboflex, Boston Gear, Delroyd Worm Gear, Formsprag Clutch, Huco, Industrial Clutch, Inertia Dynamics, Kilian Manufacturing, Lamiflex Couplings, Marland Clutch, Matrix, Nuttall Gear, Stieber Clutch, Svendborg Brakes, TB Wood’s, Twiflex, Warner Electric, Warner Linear, and Wichita Clutch. | |
In November 2013, Altra Holdings, Inc. changed its name to Altra Industrial Motion Corp., and Altra Industrial Motion, Inc., the Company’s wholly owned subsidiary, changed its name to Altra Power Transmission, Inc. |
Basis_of_Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2014 | |
Accounting Policies [Abstract] | ' |
Basis of Presentation | ' |
2. Basis of Presentation | |
The Company was formed on November 30, 2004 following acquisitions of The Kilian Company (“Kilian”) and certain subsidiaries of Colfax Corporation (“Colfax”). During 2006, the Company acquired Hay Hall Holdings Limited (“Hay Hall”) and Bear Linear. On April 5, 2007, the Company acquired TB Wood’s Corporation (“TB Wood’s”), and on October 5, 2007, the Company acquired substantially all of the assets of All Power Transmission Manufacturing, Inc. On May 29, 2011, the Company acquired substantially all of the assets of Danfoss Bauer GmbH relating to its gear motor business (“Bauer”). On July 11, 2012, the Company acquired 85% of privately held Lamiflex do Brasil Equipamentos Industriais Ltda. (“Lamiflex”). On December 17, 2013, the Company completed the acquisition of Svendborg Brakes A/S, now known as Svendborg Brakes ApS, and S.B. Patent Holding ApS (together “Svendborg”). The Company acquired all the issued and outstanding shares of Svendborg from Friction Holding A/S. | |
The Company’s unaudited condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and do not include all of the information and note disclosures required by accounting principles generally accepted in the United States of America. These statements should be read in conjunction with the financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013. In the opinion of management, the accompanying unaudited condensed consolidated financial statements include all adjustments, consisting only of normal recurring adjustments, necessary to present fairly the Company’s financial position as of March 31, 2014 and December 31, 2013, results of operations for the quarters ended March 31, 2014 and March 30, 2013, and cash flows for the quarters ended March 31, 2014 and March 30, 2013. | |
The Company modified its quarterly reporting calendar effective at the beginning of fiscal year 2014 to report on a calendar month-end basis with all quarters ending on the last day of the final month of each quarter. Historically, the Company’s reporting calendar for all quarters presented has consisted of thirteen weeks of operations per quarter. The Company’s fiscal year end will remain December 31. The effects of the change in the reporting periods did not have a significant impact on the consolidated financial statements. |
Fair_Value_of_Financial_Instru
Fair Value of Financial Instruments | 3 Months Ended |
Mar. 31, 2014 | |
Fair Value Disclosures [Abstract] | ' |
Fair Value of Financial Instruments | ' |
3. Fair Value of Financial Instruments | |
The carrying values of financial instruments, including accounts receivable, cash equivalents, accounts payable, and other accrued liabilities approximate fair value. Debt under the Company’s Credit Agreement including a Term Loan Facility and a Revolving Credit Facility approximate the fair values due to the variable rate nature at current market rates. | |
The carrying amount of the 2.75% Convertible Notes (the “Convertible Notes”) was $85.0 million at each of March 31, 2014 and March 30, 2013. The estimated fair value of the Convertible Notes at March 31, 2014 and December 31, 2013 was $120.9 million and $116.5 million, respectively, based on inputs other than quoted prices that are observable for the Convertible Notes (level 2). | |
Included in cash and cash equivalents as of March 31, 2014 and December 31, 2013 are money market fund investments of $12.9 million and $16.6 million, respectively, which are reported at fair value based on quoted market prices for such investments (level 1). | |
The estimated fair value of the Company’s interest rate swap agreement with certain financial institutions (“Interest Rate Swap”) at each of March 31, 2014 and December 31, 2013 was $0.2 million, based on inputs other than quoted prices that are observable for the Interest Rate Swap (level 2). Inputs include present value of fixed and projected floating rate cash flows over the term of the swap contract. |
Changes_in_Accumulated_Other_C
Changes in Accumulated Other Comprehensive Income (Loss) by Component | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||
Changes in Accumulated Other Comprehensive Income (Loss) by Component | ' | ||||||||||||||||
4. Changes in Accumulated Other Comprehensive Income (Loss) by Component | |||||||||||||||||
The following is a reconciliation of changes in Accumulated Other Comprehensive Income (Loss) by Component for the periods presented: | |||||||||||||||||
Gains and | Defined | Cumulative | Total | ||||||||||||||
Losses on | Benefit | Foreign | |||||||||||||||
Cash Flow | Pension | Currency | |||||||||||||||
Hedges | Plans | Translation | |||||||||||||||
Adjustment | |||||||||||||||||
Accumulated Other Comprehensive Income (Loss) by Component, January 1, 2013 | $ | — | $ | (4,607 | ) | $ | (18,796 | ) | $ | (23,403 | ) | ||||||
Net current-period Other Comprehensive Income (Loss) | — | — | (6,883 | ) | (6,883 | ) | |||||||||||
Accumulated Other Comprehensive Income (Loss) by Component, March 30, 2013 | $ | — | $ | (4,607 | ) | $ | (25,679 | ) | $ | (30,286 | ) | ||||||
Gains and | Defined | Cumulative | Total | ||||||||||||||
Losses on | Benefit | Foreign | |||||||||||||||
Cash Flow | Pension | Currency | |||||||||||||||
Hedges | Plans | Translation | |||||||||||||||
Adjustment | |||||||||||||||||
Accumulated Other Comprehensive Income (Loss) by Component, January 1, 2014 | $ | 135 | $ | (3,133 | ) | $ | (15,398 | ) | $ | (18,396 | ) | ||||||
Net current-period Other Comprehensive Income (Loss) | 5 | — | (54 | ) | (49 | ) | |||||||||||
Accumulated Other Comprehensive Income (Loss) by Component, March 31, 2014 | $ | 140 | $ | (3,133 | ) | $ | (15,452 | ) | $ | (18,445 | ) | ||||||
Net_Income_per_Share
Net Income per Share | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Earnings Per Share [Abstract] | ' | ||||||||
Net Income per Share | ' | ||||||||
5. Net Income per Share | |||||||||
Basic earnings per share is based on the weighted average number of shares of common stock outstanding, and diluted earnings per share is based on the weighted average number of shares of common stock outstanding and all potentially dilutive common stock equivalents outstanding. Common stock equivalents are included in the per share calculations when the effect of their inclusion is dilutive. | |||||||||
The following is a reconciliation of basic to diluted net income per share: | |||||||||
Quarter Ended | |||||||||
March 31, | March 30, | ||||||||
2014 | 2013 | ||||||||
Net income attributable to Altra Industrial Motion Corp. | $ | 11,365 | $ | 11,880 | |||||
Shares used in net income per common share - basic | 26,733 | 26,733 | |||||||
Dilutive effect of the equity premium on Convertible Notes at the average price of common stock | 660 | — | |||||||
Incremental shares of unvested restricted common stock | 51 | 34 | |||||||
Shares used in net income per common share - diluted | 27,444 | 26,767 | |||||||
Earnings per share: | |||||||||
Basic net income attributable to Altra Industrial Motion Corp. | $ | 0.43 | $ | 0.44 | |||||
Diluted net income attributable to Altra Industrial Motion Corp. | $ | 0.41 | $ | 0.44 | |||||
During the quarter ended March 31, 2014, the average price of the Company’s common stock exceeded the current conversion price of the Company’s Convertible Notes of $27.02 resulting in an additional 660,000 shares being included in the shares used in net income per common share in the diluted earnings per share calculation above (See Note 12). |
Acquisitions
Acquisitions | 3 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Business Combinations [Abstract] | ' | ||||||||||||
Acquisitions | ' | ||||||||||||
6. Acquisitions | |||||||||||||
In December 2013, the Company consummated an agreement (the “Purchase Agreement”) to acquire all of the issued and outstanding shares of Svendborg Brakes A/S, now known as Svendborg Brakes ApS, and S.B. Patent Holding ApS (together “Svendborg”) for cash consideration of €80.1 million ($110.2 million), less the cash remaining on the balance sheet at close of €5.4 million ($7.5 million). This transaction is referred to as the Svendborg Acquisition. Through the Svendborg Acquisition, the Company acquired the leading global manufacturer of premium quality caliper brakes. With the Svendborg Acquisition, in addition to a presence in Denmark, the Company acquired Denmark’s well-established sales network in 7 additional countries in Western Europe, China, South America, Australia and the United States as well as a manufacturing facility in China. | |||||||||||||
Altra financed the transaction through a combination of cash and additional borrowings under its Credit Agreement. Under the Purchase Agreement, the seller agreed to provide the Company with a limited set of representations and warranties, including with respect to outstanding and potential liabilities. Claims for a breach of a representation or warranty are secured by a limited escrow and warranty and indemnity insurance. Damages resulting from a breach of a representation or warranty could have a material and adverse effect on the Company’s financial condition and results of operations, and there is no guarantee that the Company would actually be able to recover all or any portion of the sums payable in connection with such breach. | |||||||||||||
Under the Purchase Agreement, the seller agreed to provide the Company with an indemnification for certain tax liabilities related to transfer pricing (the “Transfer Pricing Claims”) identified as part of an ongoing tax audit in Denmark. As part of the Purchase Agreement, an escrow in the amount of approximately €8.5 million ($11.6 million) was established for the Transfer Pricing Claims. The Company estimated this liability to be $8.1 million and as a result has recorded a liability included in taxes payable and an escrow receivable in other current assets. The purchase price in the reconciliation below represents cash consideration less the estimated escrow receivable for which the Company expects to be indemnified. | |||||||||||||
The closing date of the Svendborg Acquisition was December 17, 2013, and as a result, the Company’s consolidated financial statements reflect Svendborg’s results of operations from the beginning of business on December 17, 2013 forward. | |||||||||||||
As of March 31, 2014, the allocation of the purchase price for the Svendborg Acquisition is preliminary. The fair value of all the acquired identifiable assets and liabilities summarized below is provisional pending finalization of the Company’s acquisition accounting. Measurement period adjustments reflect new information obtained about facts and circumstances that existed as of the acquisition date. The Company believes that such preliminary allocations provide a reasonable basis for estimating the fair values of assets acquired and liabilities assumed, but the Company is waiting for additional information necessary to finalize fair value. | |||||||||||||
At Acquisition | Measurement | At Acquisition | |||||||||||
Date | Period | Date (As | |||||||||||
Adjustments | Adjusted) | ||||||||||||
Purchase price, excluding acquisition costs of approximately $2.5 million | $ | 102,096 | $ | — | $ | 102,096 | |||||||
Cash and cash equivalents | 7,483 | — | 7,483 | ||||||||||
Trade receivables | 21,575 | (329 | ) | 21,246 | |||||||||
Inventories | 25,452 | (224 | ) | 25,228 | |||||||||
Prepaid and other | 5,511 | (76 | ) | 5,435 | |||||||||
Property, plant and equipment | 12,216 | — | 12,216 | ||||||||||
Other assets | 1,133 | — | 1,133 | ||||||||||
Intangible assets | 48,893 | — | 48,893 | ||||||||||
Total assets acquired | $ | 122,263 | $ | (629 | ) | $ | 121,634 | ||||||
Accounts payable | 4,833 | — | 4,833 | ||||||||||
Accrued expenses and other current liabilities | 9,620 | 168 | 9,788 | ||||||||||
Taxes payable | 10,254 | — | 10,254 | ||||||||||
Deferred tax liability | 11,483 | — | 11,483 | ||||||||||
Total liabilities assumed | $ | 36,190 | $ | 168 | $ | 36,358 | |||||||
Net assets acquired | 86,073 | (797 | ) | 85,276 | |||||||||
Excess of purchase price over fair value of net assets acquired | $ | 16,023 | $ | 797 | $ | 16,820 | |||||||
The excess of the purchase price over the fair value of the net assets acquired was recorded as goodwill. This goodwill is not deductible for income tax purposes. The Company expects to develop synergies, such as lower cost country sourcing, global procurement, the ability to cross-sell product, and the ability to penetrate certain geographic areas, as a result of the acquisition of Svendborg. | |||||||||||||
The Company updated the acquisition accounting for the measurement period adjustments noted in the table above during the quarter ended March 31, 2014. | |||||||||||||
Customer relationships, subject to amortization | $ | 40,050 | |||||||||||
Trade names and trademarks, not subject to amortization | 8,500 | ||||||||||||
Patents | 343 | ||||||||||||
Total intangible assets | $ | 48,893 | |||||||||||
Customer relationships are subject to amortization which will be amortized on a straight-line basis over their estimated useful lives of 17 years, which represents the anticipated period over which the Company estimates it will benefit from the acquired assets. | |||||||||||||
The following table sets forth the unaudited pro forma results of operations of the Company for the quarter to date period ended March 30, 2013, as if the Company had acquired Svendborg at the beginning of the period. The pro forma information contains the actual operating results of the Company, including Svendborg, adjusted to include the pro forma impact of (i) additional depreciation expense as a result of estimated depreciation based on the fair value of fixed assets and; (ii) additional expense as a result of the estimated amortization of identifiable intangible assets; (iii) additional interest expense for borrowings under the Credit Agreement associated with the Svendborg Acquisition. These pro forma amounts do not purport to be indicative of the results that would have actually been obtained if the acquisition occurred at the beginning of the period or that may be obtained in the future. | |||||||||||||
Pro Forma | |||||||||||||
(unaudited) | |||||||||||||
Quarter Ended | |||||||||||||
March 30, 2013 | |||||||||||||
Total revenues | $ | 205,119 | |||||||||||
Net income attributable to Altra Industrial Motion Corp. | $ | 12,812 | |||||||||||
Basic earnings per share: | |||||||||||||
Net income attributable to Altra Industrial Motion Corp. | $ | 0.48 | |||||||||||
Diluted earnings per share: | |||||||||||||
Net income attributable to Altra Industrial Motion Corp. | $ | 0.48 |
Inventories
Inventories | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Inventories | ' | ||||||||
7. Inventories | |||||||||
Inventories are generally stated at the lower of cost or market, using the first-in, first-out (“FIFO”) method. Market is defined as net realizable value. Inventories located at certain subsidiaries are stated at the lower of cost or market, principally using the last-in, first-out (“LIFO”) method. Inventories at March 31, 2014 and December 31, 2013 consisted of the following: | |||||||||
March 31, | December 31, | ||||||||
2 0 14 | 2013 | ||||||||
Raw materials | $ | 52,703 | $ | 56,824 | |||||
Work in process | 18,953 | 18,432 | |||||||
Finished goods | 68,071 | 68,409 | |||||||
$ | 139,727 | $ | 143,665 | ||||||
Approximately 7.3% and 7.5% of total inventories were valued using the LIFO method as of March 31, 2014 and December 31, 2013, respectively. There was no provision recorded as a component of cost of sales to value the inventory on a LIFO basis for the quarter to date periods ended March 31, 2014 or March 30, 2013. |
Goodwill_and_Intangible_Assets
Goodwill and Intangible Assets | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Goodwill And Intangible Assets Disclosure [Abstract] | ' | ||||||||||||||||
Goodwill and Intangible Assets | ' | ||||||||||||||||
8. Goodwill and Intangible Assets | |||||||||||||||||
Changes to goodwill from January 1, through March 31, 2014 were as follows: | |||||||||||||||||
2014 | |||||||||||||||||
Gross goodwill balance as of January 1 | $ | 136,149 | |||||||||||||||
Impact of changes in foreign currency | 81 | ||||||||||||||||
Measurement period adjustments related to acquisition of Svendborg (See Note 6) | 797 | ||||||||||||||||
Gross goodwill balance as of March 31 | 137,027 | ||||||||||||||||
Accumulated impairment as of January 1 | (31,810 | ) | |||||||||||||||
Impairment charge during the period | — | ||||||||||||||||
Accumulated impairment as of March 31 | (31,810 | ) | |||||||||||||||
Net goodwill balance March 31 | $ | 105,217 | |||||||||||||||
Other intangible assets as of March 31, 2014 and December 31, 2013 consisted of the following: | |||||||||||||||||
March 31, 2014 | December 31, 2013 | ||||||||||||||||
Cost | Accumulated | Cost | Accumulated | ||||||||||||||
Amortization | Amortization | ||||||||||||||||
Other intangible assets | |||||||||||||||||
Intangible assets not subject to amortization: | |||||||||||||||||
Tradenames and trademarks | $ | 42,985 | $ | — | $ | 42,985 | $ | — | |||||||||
Intangible assets subject to amortization: | |||||||||||||||||
Customer relationships | 118,914 | 44,821 | 118,914 | 42,645 | |||||||||||||
Product technology and patents | 6,062 | 5,762 | 6,062 | 5,719 | |||||||||||||
Impact of changes in foreign currency | (730 | ) | — | (829 | ) | — | |||||||||||
Total intangible assets | $ | 167,231 | $ | 50,583 | $ | 167,132 | $ | 48,364 | |||||||||
The Company recorded $2.2 million and $1.6 million of amortization expense in the quarters ended March 31, 2014 and March 30, 2013, respectively. | |||||||||||||||||
The estimated amortization expense for intangible assets is approximately $6.6 million for the remainder of 2014, $8.8 million in each of the next four years and then $31.9 million thereafter. |
Warranty_Costs
Warranty Costs | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Guarantees [Abstract] | ' | ||||||||
Warranty Costs | ' | ||||||||
9. Warranty Costs | |||||||||
The contractual warranty period generally ranges from three months to two years with certain warranties extending for longer periods based on the product and application of the product. Changes in the carrying amount of accrued product warranty costs for each of the quarters ended March 31, 2014 and March 30, 2013 are as follows: | |||||||||
March 31, | March 30, | ||||||||
2014 | 2013 | ||||||||
Balance at beginning of period | $ | 8,739 | $ | 5,625 | |||||
Accrued current period warranty expense | 201 | 519 | |||||||
Payments | (580 | ) | (416 | ) | |||||
Balance at end of period | $ | 8,360 | $ | 5,728 | |||||
Income_Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2014 | |
Income Tax Disclosure [Abstract] | ' |
Income Taxes | ' |
10. Income Taxes | |
The estimated effective income tax rates recorded for the quarters ended March 31, 2014 and March 30, 2013, were based upon management’s best estimate of the effective tax rate for the entire year. | |
The Company and its subsidiaries file a consolidated federal income tax return in the United States as well as consolidated and separate income tax returns in various state and foreign jurisdictions. In the normal course of business, the Company is subject to examination by taxing authorities in all of these jurisdictions. With the exception of certain foreign jurisdictions, the Company is no longer subject to income tax examinations for the tax years prior to 2010. | |
Additionally, the Company has indemnification agreements with the sellers of the Svendborg, Bauer and Lamiflex entities that provide for reimbursement to the Company for payments made in satisfaction of tax liabilities relating to pre-acquisition periods. | |
The Company recognizes interest and penalties related to unrecognized tax benefits as a component of income tax expense in the condensed consolidated statements of operations. At March 31, 2014 and December 31, 2013, the Company had $0.2 million and $0.4 million of accrued interest and penalties, respectively. |
Pension_and_Other_Employee_Ben
Pension and Other Employee Benefits | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Compensation And Retirement Disclosure [Abstract] | ' | ||||||||
Pension and Other Employee Benefits | ' | ||||||||
11. Pension and Other Employee Benefits | |||||||||
Defined Benefit (Pension) | |||||||||
The Company sponsors various defined benefit (pension) plans for certain, primarily unionized, active employees (those in the employment of the Company at, and certain employees hired since, November 30, 2004). | |||||||||
The following tables represent the reconciliation of the benefit obligation, fair value of plan assets and funded status of the respective defined benefit (pension) plans as of March 31, 2014 and March 30, 2013: | |||||||||
Quarter Ended | |||||||||
Pension Benefits | |||||||||
March 31, | March 30, | ||||||||
2014 | 2013 | ||||||||
Service cost | $ | 38 | $ | 38 | |||||
Interest cost | 273 | 246 | |||||||
Expected return on plan assets | (269 | ) | (267 | ) | |||||
Amortization of net gain | 27 | 42 | |||||||
Net periodic benefit cost (income) | $ | 69 | $ | 59 | |||||
The Company made $0.2 million in contributions during the quarter ended March 31, 2014. |
Debt
Debt | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
Debt | ' | ||||||||
12. Debt | |||||||||
Outstanding debt obligations at March 31, 2014 and December 31, 2013 were as follows: | |||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
Debt: | |||||||||
Revolving Credit Facility | $ | 35,000 | $ | 41,198 | |||||
Convertible Notes | 85,000 | 85,000 | |||||||
Term Loan Facility | 156,864 | 163,245 | |||||||
Equipment Loan | 4,737 | 4,155 | |||||||
Mortgages | 515 | 659 | |||||||
Capital leases | 155 | 178 | |||||||
Other | — | — | |||||||
Total debt | 282,271 | 294,435 | |||||||
Less: debt discount, net of accretion | (15,340 | ) | (16,163 | ) | |||||
Total debt, net of unaccreted discount | $ | 266,931 | $ | 278,272 | |||||
Less current portion of long-term debt | 17,784 | 16,924 | |||||||
Total long-term debt, net of unaccreted discount | $ | 249,147 | $ | 261,348 | |||||
Credit Agreement | |||||||||
In December 2013, the Company entered into an Amended and Restated Credit Agreement (the “Credit Agreement”). The Credit Agreement amends and restates the Company’s former credit agreement, dated November 20, 2012 (the “Former Credit Agreement”). Pursuant to the Former Credit Agreement, the former lenders made available to the Company an initial term loan facility of $100,000,000 and an initial revolving credit facility of $200,000,000. | |||||||||
Pursuant to the Credit Agreement, the lenders made an additional term loan of €50,000,000 (the “Additional Term Loan”) to Altra Industrial Motion Netherlands B.V. The Credit Agreement kept in effect the balance (approximately $94,375,000) of the existing term loan facility (the “Initial Term Loan”) made to the domestic borrowers under the Former Credit Agreement (collectively, the two term loans are referred to as the “Term Loan Facility”), as well as the revolving credit facility of $200,000,000 made under the Former Credit Agreement (the “Revolving Credit Facility”). The Credit Agreement continues, even after the making of the Additional Term Loan, to provide for a possible expansion of the credit facilities by an additional $150,000,000, which can be allocated as additional term loans and/or additional revolving credit loans. The amounts available under the Term Loan Facility were used, and amounts available under the Revolving Credit Facility can be used, for general corporate purposes, including acquisitions, and to repay existing indebtedness. The stated maturity of these credit facilities is December 6, 2018, and there are scheduled quarterly principal payments due on the outstanding amount of the Term Loan Facility. With respect to the Initial Term Loan, the scheduled quarterly principal payments due on the outstanding amount have been reamortized in accordance with the new December 6, 2018 maturity date. The previous maturity of the Revolving Credit Facility and the Initial Term Loan was November 20, 2017. | |||||||||
The amounts available under the Revolving Credit Facility may be drawn upon in accordance with the terms of the Credit Agreement. All amounts outstanding under the credit facilities are due on the stated maturity or such earlier time, if any, required under the Credit Agreement. The amounts owed under either of the credit facilities may be prepaid at any time, subject to usual notification and breakage payment provisions. Interest on the amounts outstanding under the credit facilities is calculated using either an ABR Rate or Eurodollar Rate, plus the applicable margin. The applicable margins for Eurodollar Loans are between 1.375% to 1.875%, and for ABR Loans are between 0.375% and 0.875%. The amounts of the margins are calculated based on either a consolidated total net leverage ratio (as defined in the Credit Agreement), or the then applicable rating(s) of the Company’s debt if and then to the extent as provided in the Credit Agreement. A portion of the Revolving Credit Facility may also be used for the issuance of letters of credit, and a portion of the amount of the Revolving Credit Facility is available for borrowings in certain agreed upon foreign currencies. | |||||||||
As of March 31, 2014 and December 31, 2013, we had $35.0 million and $41.2 million outstanding on our Revolving Credit Facility, respectively. As of March 31, 2014 and December 31, 2013, we had $10.2 and $9.8 million in letters of credit outstanding, respectively. We had $154.8 million and $149.0 million available under the Revolving Credit Facility at March 31, 2014 and December 31, 2013, respectively. | |||||||||
The Credit Agreement contains various affirmative and negative covenants and restrictions, which among other things, will require the Company and certain Subsidiaries to provide certain financial reports to the Lenders, require the Company to maintain certain financial covenants relating to consolidated leverage and interest coverage, limit maximum annual capital expenditures, and limit the ability of the Company and its subsidiaries to incur or guarantee additional indebtedness, pay dividends or make other equity distributions, purchase or redeem capital stock or debt stock or debt, make certain investments, sell assets, engage in certain transactions, and effect a consolidation or merger. The Credit Agreement also contains customary events of default. | |||||||||
Pledge and Security Agreement; Trademark Security Agreement; Patent Security Agreement. | |||||||||
Pursuant to an Omnibus Reaffirmation and Ratification of Collateral Documents entered into on December 6, 2013 in connection with the Credit Agreement by and among the Company, the Loan Parties and the Administrative Agent (the “Ratification Agreement”), the Loan Parties (exclusive of the foreign subsidiary Borrower) have reaffirmed their obligations to the Lenders under the Pledge and Security Agreement The Credit Agreement provides that the obligation to grant the security interest can cease upon the obtaining of certain corporate family credit ratings for the Company, but the obligation to grant a security interest is subject to subsequent reinstatement if the ratings are not maintained as provided in the Credit Agreement. | |||||||||
Pursuant to the Ratification Agreement, the Loan Parties (other than the foregoing subsidiary Borrower) have also reaffirmed their obligations under each of the Patent Security Agreement and a Trademark Security Agreement. | |||||||||
The Loan Parties and the Administrative Agent entered into a Pledge and Security Agreement (the “Pledge and Security Agreement”), pursuant to which each Loan Party pledges, assigns and grants to the Administrative Agent, on behalf of and for the ratable benefit of the Lenders, a security interest in all of its right, title and interest in, to and under all personal property, whether now owned by or owing to, or after acquired by or arising in favor of such Loan Party (including under any trade name or derivations), and whether owned or consigned by or to, or leased from or to, such Loan Party, and regardless of where located, except for specific excluded personal property identified in the Pledge and Security Agreement (collectively, the “Collateral”). Notwithstanding the foregoing, the Collateral does not include, among other items, more than 65% of the capital stock of the first tier foreign subsidiaries of the Company. The Pledge and Security Agreement contains other customary representations, warranties and covenants of the parties. The Credit Agreement provides that the obligation to grant the security interest can cease upon the obtaining of certain corporate family ratings for the Company, but the obligation to grant a security interest is subject to subsequent reinstatement if the ratings are not maintained as provided in the Credit Agreement. | |||||||||
In connection with the Pledge and Security Agreement, certain of the Loan Parties delivered a Patent Security Agreement and a Trademark Security Agreement in favor of the Administrative Agent pursuant to which each of the Loan Parties signatory thereto pledges, assigns and grants to the Administrative Agent, on behalf of and for the ratable benefit of the Lenders, a security interest in all of its right, title and interest in, to and under all registered patents, patent applications, registered trademarks and trademark applications owned by such Loan Parties. | |||||||||
Convertible Senior Notes | |||||||||
In March 2011, the Company issued Convertible Senior Notes (the “Convertible Notes”) due March 1, 2031. The Convertible Notes are guaranteed by the Company’s U.S. domestic subsidiaries. Interest on the Convertible Notes is payable semi-annually in arrears, on March 1 and September 1 of each year, commencing on September 1, 2011 at an annual rate of 2.75%. Proceeds from the offering were $81.3 million, net of fees and expenses that were capitalized. The proceeds from the offering were used to fund the Bauer Acquisition, as well as bolster the Company’s cash position. | |||||||||
The Convertible Notes will mature on March 1, 2031, unless earlier redeemed, repurchased by the Company or converted, and are convertible into cash or shares, or a combination thereof, at the Company’s election. The Convertible Notes are convertible into shares of the Company’s common stock based on an initial conversion rate, subject to adjustment, of 36.0985 shares per $1,000 principal amount of notes (which represents an initial conversion price of approximately $27.70 per share of our common stock), in certain circumstances. The conversion price at March 31, 2014 is $27.02 per share. Prior to March 1, 2030, the Convertible Notes are convertible only in the following circumstances: (1) during any fiscal quarter commencing after June 30, 2011 if the last reported sale price of the Company’s common stock is greater than or equal to 130% of the applicable conversion price for at least 20 trading days in the period of 30 consecutive trading days ending on the last trading day of the preceding fiscal quarter; (2) during the five business day period after any 10 consecutive trading day period (the “measurement period”) in which the trading price per $1,000 principal amount of notes for each trading day in the measurement period was less than 97% of the product of the last reported sale price of the Company’s common stock and the conversion rate on such trading day; (3) if the Convertible Notes have been called for redemption; or (4) upon the occurrence of specified corporate transactions. These circumstances have not been met as of the quarter ended March 31, 2014. | |||||||||
On or after March 1, 2030, and ending at the close of business on the second business day immediately preceding the maturity date, holders may convert their Convertible Notes at any time, regardless of the foregoing circumstances. Upon conversion, the Company will pay or deliver, as the case may be, cash, shares of common stock, or a combination thereof, at the Company’s election. The Company intends to settle the principal amount in cash and any additional amounts in shares of stock. | |||||||||
If a fundamental change occurs, the Convertible Notes are redeemable at a price equal to 100% of the principal amount of the notes to be repurchased, plus accrued and unpaid interest (including contingent interest and additional interest, if any) to, but excluding, the repurchase date. The Convertible Notes are also redeemable on each of March 1, 2018, March 1, 2021, and March 1, 2026 for cash at a price equal to 100% of the principal amount of the notes to be repurchased, plus accrued and unpaid interest (including contingent interest and additional interest, if any) to, but excluding, the option repurchase date. | |||||||||
On or after March 1, 2015, the Company may call all or part of the Convertible Notes at a redemption price equal to 100% of the principal amount of the Convertible Notes to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date, plus a “make-whole premium” payment in cash, shares of the Company’s common stock, or combination thereof, at the Company’s option, equal to the sum of the present values of the remaining scheduled payments of interest on the Convertible Notes to be redeemed through March 1, 2018 to, but excluding, the redemption date, if the last reported sale price of the Company’s common stock for 20 or more trading days in a period of 30 consecutive trading days ending on the trading day prior to the date the Company provides notice of redemption exceeds 130% of the conversion price in effect on each such trading day. On or after March 1, 2018, the Company may redeem for cash all or a portion of the notes at a redemption price of 100% of the principle amount of the Convertible Notes to be redeemed, plus accrued and unpaid interest (including contingent and additional interest, if any) to, but not including, the redemption date. | |||||||||
The Company separately accounted for the debt and equity components of the Convertible Notes to reflect the issuer’s non-convertible debt borrowing rate, which interest costs are to be recognized in subsequent periods. The note payable principal balance at the date of issuance of $85.0 million was bifurcated into a debt component of $60.5 million and an equity component of $24.5 million. The difference between the note payable principal balance and the value of the debt component is being accreted to interest expense over the term of the notes. The debt component was recognized at the present value of associated cash flows discounted using a 8.25% discount rate, the borrowing rate at the date of issuance for a similar debt instrument without a conversion feature. The Company paid approximately $3.7 million of issuance costs associated with the Convertible Notes. The Company recorded $1.0 million of debt issuance costs as an offset to additional paid-in capital. The balance of $2.7 million of debt issuance costs is classified as other non-current assets and will be amortized over the term of the notes using the effective interest method. | |||||||||
The carrying amount of the principal amount of the liability component, the unamortized discount, and the net carrying amount are as follows as of March 31, 2014: | |||||||||
Principal amount of debt | $ | 85,000 | |||||||
Unamortized discount | 15,340 | ||||||||
Carrying value of debt | $ | 69,660 | |||||||
Interest expense associated with the Convertible Notes consisted of the following for the quarter ended March 31, 2014: | |||||||||
Contractual coupon rate of interest | $ | 584 | |||||||
Accretion of Convertible Notes discount and amortization of deferred financing costs | 911 | ||||||||
Interest expense for the convertible notes | $ | 1,495 | |||||||
The effective interest yield of the Convertible Notes due in 2031 is 8.5% at March 31, 2014 and the cash coupon interest rate is 2.75%. | |||||||||
Equipment and Working Capital Notes | |||||||||
The Company entered into a loan with a bank to equip its new facility in Changzhou, China during 2013. The Company is allowed to borrow up to 90% of the amount of certain outstanding letters of credit issued by the Company’s U.S. bank in favor of the lending bank in China. As of March 31, 2014, the total available to borrow was 38.8 million RMB ($6.3 million). The note is due in installments from 2014 through 2016, with interest varying between 5.04% and 6.69%. The Company has a 29.2 million RMB ($4.7 million) line of credit outstanding at March 31, 2014. The note is callable by the bank at its discretion and as such, has been included in the current portion of long-term debt in the balance sheet at March 31, 2014. | |||||||||
Mortgage | |||||||||
The Company has a mortgage with a bank on its facility in Heidelberg, Germany with an interest rate of 2.9% and is payable in monthly installments over the next three years. As of March 31, 2014 and December 31, 2013, the mortgage had a remaining principal balance of €0.4 million or $0.5 million, and €0.5 million or $0.7 million, respectively. | |||||||||
Capital Leases | |||||||||
The Company leases certain equipment under capital lease arrangements, whose obligations are included in both short-term and long-term debt. Capital lease obligations amounted to approximately $0.2 million at March 31, 2014 and December 31, 2013. Assets subject to capital leases are included in property, plant and equipment with the related amortization recorded as depreciation expense. | |||||||||
Overdraft Agreements | |||||||||
Certain of our foreign subsidiaries maintain overdraft agreements with financial institutions. There were no borrowings as of March 31, 2014 or December 31, 2013 under any of the overdraft agreements. |
Stockholders_Equity
Stockholders' Equity | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Equity [Abstract] | ' | ||||||||
Stockholders' Equity | ' | ||||||||
13. Stockholders’ Equity | |||||||||
The Company declared dividends of $0.10 per share of common stock for the quarter ended March 31, 2014. The Company declared a cash dividend of $0.08 per share for the quarter ended March 30, 2013. The dividend of $2.7 million was paid on April 3, 2014 to shareholders of record as of the close of business on March 18, 2014 and was accrued for in the balance sheet at March 31, 2014. | |||||||||
Future declarations of quarterly cash dividends are subject to approval by the Board of Directors and to the Board’s continuing determination that the declaration of dividends are in the best interest of the Company’s stockholders and are in compliance with all laws and agreements of the Company applicable to the declaration and payment of cash dividends. | |||||||||
Stock-Based Compensation | |||||||||
The Company’s Board of Directors established the 2004 Equity Incentive Plan (as amended, the “Plan”) that provides for various forms of stock-based compensation to independent directors, officers and senior-level employees of the Company. The restricted shares issued pursuant to the Plan generally vest ratably over a period ranging from immediately to five years from the date of grant, provided, that the vesting of the restricted shares may accelerate upon the occurrence of certain liquidity events, if approved by the Board of Directors in connection with the transactions. Common stock awarded under the Plan is generally subject to restrictions on transfer, repurchase rights, and other limitations and rights as set forth in the applicable award agreements. The shares are valued based on the share price on the date of grant. | |||||||||
The Plan permits the Company to grant, among other things, restricted stock, restricted stock units, and performance share awards to key employees and other persons who make significant contributions to the success of the Company. The restrictions and vesting schedule for restricted stock granted under the Plan are determined by the Personnel and Compensation Committee of the Board of Directors. | |||||||||
Compensation expense recorded (in selling, general and administrative expense) quarters ended March 31, 2014 and March 30, 2013, was $0.9 million and $0.8 million, respectively. The Company recognizes stock-based compensation expense on a straight-line basis for the shares vesting ratably under the plan and uses the graded-vesting method of recognizing stock-based compensation expense for the performance share awards based on the probability of the specific performance metrics being achieved over the requisite service period. | |||||||||
The following table sets forth the activity of the Company’s restricted stock and performance share grants in the quarter ended March 31, 2014: | |||||||||
Weighted-average | |||||||||
Shares | grant date fair value | ||||||||
Shares unvested January 1, 2014 | 149,635 | $ | 23.02 | ||||||
Shares granted | 112,225 | 33.65 | |||||||
Shares for which restrictions lapsed | (19,555 | ) | 34.07 | ||||||
Shares unvested March 31, 2014 | 242,305 | $ | 26.92 | ||||||
Total remaining unrecognized compensation cost was $5.9 million as of March 31, 2014, which will be recognized over a weighted average remaining period of three years. The fair market value of the shares for which the restrictions have lapsed during the quarter ended March 31, 2014 was $0.7 million. Restricted shares granted are valued based on the fair market value of the stock on the date of grant. |
Derivative_Financial_Instrumen
Derivative Financial Instruments | 3 Months Ended | ||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||
Derivative Instruments And Hedging Activities Disclosure [Abstract] | ' | ||||||||||||||||||||
Derivative Financial Instruments | ' | ||||||||||||||||||||
14. Derivative Financial Instruments | |||||||||||||||||||||
Interest Rate Swap | |||||||||||||||||||||
In April 2013, the Company entered into an interest rate swap agreement designed to fix the variable interest rate payable on a portion of its outstanding borrowings, currently $90.0 million, under the Credit Agreement, at 0.626% exclusive of the margin under the Former Credit Agreement. The interest rate swap agreement and its terms are also applicable to the variable interest rate borrowings under the current Credit Agreement. | |||||||||||||||||||||
The interest rate swap agreement was designed to manage exposure to interest rates on the Company’s variable rate indebtedness. The Company recognizes all derivatives on its balance sheet at fair value. The Company has designated its interest rate swap agreement, which is forward-dated, as a cash flow hedge. Changes in the fair value of the swap are recognized in other comprehensive income until the hedged items are recognized in earnings. Hedge ineffectiveness, if any, associated with the swap will be reported by the Company in interest expense. There was no ineffectiveness associated with the swap during the quarter ended March 31, 2014, nor was any amount excluded from ineffectiveness testing for the period. | |||||||||||||||||||||
The fair value of the swap recognized in other long-term assets and in other comprehensive income (loss) is as follows: | |||||||||||||||||||||
Fair Value | |||||||||||||||||||||
Notional | March 31, | December 31, | |||||||||||||||||||
Effective Date | Amount | Fixed Rate | Maturity | 2014 | 2013 | ||||||||||||||||
April 30, 2013 | $ | 90,000 | 0.626 | % | November 30, 2016 | $ | 218 | $ | 213 |
Concentrations_of_Credit_Segme
Concentrations of Credit, Segment Data and Workforce | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Segment Reporting [Abstract] | ' | ||||||||
Concentrations of Credit, Segment Data and Workforce | ' | ||||||||
15. Concentrations of Credit, Segment Data and Workforce | |||||||||
Financial instruments, which are potentially subject to counter party performance and concentrations of credit risk, consist primarily of trade accounts receivable. The Company manages these risks by conducting credit evaluations of customers prior to delivery or commencement of services. When the Company enters into a sales contract, collateral is normally not required from the customer. Payments are typically due within thirty days of billing. An allowance for potential credit losses is maintained, and losses have historically been within management’s expectations. No customer represented greater than 10% of total sales for each of the quarters ended March 31, 2014 and March 30, 2013. | |||||||||
The Company is also subject to counter party performance risk of loss in the event of non-performance by counterparties to financial instruments, such as cash and investments. Cash and cash equivalents are held by well-established financial institutions and invested in AAA rated mutual funds. The Company is exposed to swap counterparty credit risk with financial institutions. The Company’s counterparty is a well-established financial institution. | |||||||||
The Company has three operating segments that are regularly reviewed by our chief operating decision maker. Each of these operating segments represents a unit that produces mechanical power transmission products. The Company aggregates all of the operating segments into one reportable segment. The three operating segments are expected to have similar long-term average gross profit margins. All of our products are sold by one global sales force and we have one global marketing function with the exception of the newly acquired Svendborg business for which the Company is in the process of integrating sales and marketing activities. Strategic markets and industries are determined for the entire company and then targeted by the brands. All of our operating segments have common manufacturing and production processes. Each operating segment includes a machine shop which uses similar equipment and manufacturing techniques. Each of our operating segments uses common raw materials, such as aluminum, steel and copper. The materials are purchased and procurement contracts are negotiated by one global purchasing function. | |||||||||
The Company serves the general industrial market by selling to original equipment manufacturers (“OEM”) and distributors. Our OEM and distributor customers serve the general industrial market. Resource allocation decisions such as capital expenditure requirements and headcount requirements are made at a consolidated level and allocated to the individual operating segments. | |||||||||
Discrete financial information is not available by product line at the level necessary for management to assess performance or make resource allocation decisions. | |||||||||
Net sales to third parties by geographic region are as follows: | |||||||||
Net Sales | |||||||||
Quarter Ended | |||||||||
March 31, | March 30, | ||||||||
2014 | 2013 | ||||||||
North America (primarily U.S.) | $ | 125,788 | $ | 120,548 | |||||
Europe | 67,836 | 54,205 | |||||||
Asia and other | 16,514 | 10,397 | |||||||
Total | $ | 210,138 | $ | 185,150 | |||||
Net sales to third parties are attributed to the geographic regions based on the country in which the shipment originates. | |||||||||
The net assets of the Company’s foreign subsidiaries at March 31, 2014 and December 31, 2013 were $141.8 million and $138.7 million, respectively. |
Restructuring
Restructuring | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Restructuring And Related Activities [Abstract] | ' | ||||||||
Restructuring | ' | ||||||||
16. Restructuring | |||||||||
In the quarter ended December 31, 2012, the Company adopted a restructuring plan (“2012 Altra Plan”) as a result of continued sluggish demand in Europe and general global economic conditions. The actions taken pursuant to the 2012 Altra Plan included reducing headcount and limiting discretionary spending to improve profitability in Europe. The Company did not record any restructuring charges associated with the 2012 Altra Plan in the quarter ended March 31, 2014. | |||||||||
The Company’s total restructuring expense, by major component for the quarters ended March 31, 2014 and March 30, 2013 was as follows: | |||||||||
Quarter Ended | Quarter Ended | ||||||||
March 31, | March 30, | ||||||||
2014 | 2013 | ||||||||
2012 | 2012 | ||||||||
Altra Plan | Altra Plan | ||||||||
Severance | $ | — | $ | 283 | |||||
Other | — | 37 | |||||||
Total cash expenses | $ | — | $ | 320 | |||||
The following is a reconciliation of the accrued restructuring cost: | |||||||||
All Plans | |||||||||
Balance at January 1, 2014 | $ | 429 | |||||||
Restructuring expense incurred | — | ||||||||
Cash payments | (53 | ) | |||||||
Balance at March 31, 2014 | $ | 376 | |||||||
The total restructuring reserve as of March 31, 2014 relates to severance costs to be paid to employees and is recorded in accruals and other current liabilities on the accompanying condensed consolidated balance sheet. |
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2014 | |
Commitments And Contingencies Disclosure [Abstract] | ' |
Commitments and Contingencies | ' |
17. Commitments and Contingencies | |
General Litigation | |
The Company is involved in various pending legal proceedings arising out of the ordinary course of business. These proceedings primarily involve commercial claims, product liability claims, personal injury claims, and workers’ compensation claims. None of these legal proceedings are expected to have a material adverse effect on the results of operations, cash flows, or financial condition of the Company. With respect to these proceedings, management believes that the Company will prevail, has adequate insurance coverage or has established appropriate reserves to cover potential liabilities. Any costs that management estimates may be paid related to these proceedings or claims are accrued when the liability is considered probable and the amount can be reasonably estimated. There can be no assurance, however, as to the ultimate outcome of any of these matters, and if all or substantially all of these legal proceedings were to be determined adversely to the Company, there could be a material adverse effect on the results of operations, cash flows, or financial condition of the Company. We have established loss provisions for matters in which losses are probable and can be reasonably estimated. There were no material amounts accrued in the accompanying condensed consolidated balance sheets for potential litigation as of March 31, 2014 or December 31, 2013. For matters where a reserve has not been established and for which we believe a loss is reasonably possible, as well as for matters where a reserve has been recorded but for which an exposure to loss in excess of the amount accrued is reasonably possible, we believe that such losses, individually and in the aggregate, will not have a material effect on our consolidated financial statements. | |
The Company also risks exposure to product liability claims in connection with products it has sold and those sold by businesses that the Company acquired. Although in some cases third parties have retained responsibility for product liability claims relating to products manufactured or sold prior to the acquisition of the relevant business and in other cases the persons from whom the Company has acquired a business may be required to indemnify the Company for certain product liability claims subject to certain caps or limitations on indemnification, the Company cannot assure that those third parties will in fact satisfy their obligations with respect to liabilities retained by them or their indemnification obligations. If those third parties become unable to or otherwise do not comply with their respective obligations including indemnity obligations, or if certain product liability claims for which the Company is obligated were not retained by third parties or are not subject to these indemnities, the Company could become subject to significant liabilities or other adverse consequences. Moreover, even in cases where third parties retain responsibility for product liability claims or are required to indemnify the Company, significant claims arising from products that have been acquired could have a material adverse effect on the Company’s ability to realize the benefits from an acquisition, could result in the reduction of the value of goodwill that the Company recorded in connection with an acquisition, or could otherwise have a material adverse effect on the Company’s business, financial condition, or operations. |
Subsequent_Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2014 | |
Subsequent Events [Abstract] | ' |
Subsequent Events | ' |
18. Subsequent Events | |
The Company considers events or transactions that occur after the balance sheet date but before the financial statements are issued to provide additional evidence relative to certain estimates or to identify matters that require additional disclosure. | |
On April 24, 2014, the Company declared a dividend of $0.12 per share for the quarter ended June 30, 2014, payable on July 2, 2014 to shareholders of record as of June 18, 2014. |
Changes_in_Accumulated_Other_C1
Changes in Accumulated Other Comprehensive Income (Loss) by Component (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||
Changes in Accumulated Other Comprehensive Income (Loss) by Component | ' | ||||||||||||||||
The following is a reconciliation of changes in Accumulated Other Comprehensive Income (Loss) by Component for the periods presented: | |||||||||||||||||
Gains and | Defined | Cumulative | Total | ||||||||||||||
Losses on | Benefit | Foreign | |||||||||||||||
Cash Flow | Pension | Currency | |||||||||||||||
Hedges | Plans | Translation | |||||||||||||||
Adjustment | |||||||||||||||||
Accumulated Other Comprehensive Income (Loss) by Component, January 1, 2013 | $ | — | $ | (4,607 | ) | $ | (18,796 | ) | $ | (23,403 | ) | ||||||
Net current-period Other Comprehensive Income (Loss) | — | — | (6,883 | ) | (6,883 | ) | |||||||||||
Accumulated Other Comprehensive Income (Loss) by Component, March 30, 2013 | $ | — | $ | (4,607 | ) | $ | (25,679 | ) | $ | (30,286 | ) | ||||||
Gains and | Defined | Cumulative | Total | ||||||||||||||
Losses on | Benefit | Foreign | |||||||||||||||
Cash Flow | Pension | Currency | |||||||||||||||
Hedges | Plans | Translation | |||||||||||||||
Adjustment | |||||||||||||||||
Accumulated Other Comprehensive Income (Loss) by Component, January 1, 2014 | $ | 135 | $ | (3,133 | ) | $ | (15,398 | ) | $ | (18,396 | ) | ||||||
Net current-period Other Comprehensive Income (Loss) | 5 | — | (54 | ) | (49 | ) | |||||||||||
Accumulated Other Comprehensive Income (Loss) by Component, March 31, 2014 | $ | 140 | $ | (3,133 | ) | $ | (15,452 | ) | $ | (18,445 | ) | ||||||
Net_Income_per_Share_Tables
Net Income per Share (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Earnings Per Share [Abstract] | ' | ||||||||
Reconciliation of Basic to Diluted Net Income per Share | ' | ||||||||
The following is a reconciliation of basic to diluted net income per share: | |||||||||
Quarter Ended | |||||||||
March 31, | March 30, | ||||||||
2014 | 2013 | ||||||||
Net income attributable to Altra Industrial Motion Corp. | $ | 11,365 | $ | 11,880 | |||||
Shares used in net income per common share - basic | 26,733 | 26,733 | |||||||
Dilutive effect of the equity premium on Convertible Notes at the average price of common stock | 660 | — | |||||||
Incremental shares of unvested restricted common stock | 51 | 34 | |||||||
Shares used in net income per common share - diluted | 27,444 | 26,767 | |||||||
Earnings per share: | |||||||||
Basic net income attributable to Altra Industrial Motion Corp. | $ | 0.43 | $ | 0.44 | |||||
Diluted net income attributable to Altra Industrial Motion Corp. | $ | 0.41 | $ | 0.44 |
Acquisitions_Tables
Acquisitions (Tables) | 3 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Proforma Amount on Acquisition Occurred | ' | ||||||||||||
These pro forma amounts do not purport to be indicative of the results that would have actually been obtained if the acquisition occurred at the beginning of the period or that may be obtained in the future. | |||||||||||||
Pro Forma | |||||||||||||
(unaudited) | |||||||||||||
Quarter Ended | |||||||||||||
March 30, 2013 | |||||||||||||
Total revenues | $ | 205,119 | |||||||||||
Net income attributable to Altra Industrial Motion Corp. | $ | 12,812 | |||||||||||
Basic earnings per share: | |||||||||||||
Net income attributable to Altra Industrial Motion Corp. | $ | 0.48 | |||||||||||
Diluted earnings per share: | |||||||||||||
Net income attributable to Altra Industrial Motion Corp. | $ | 0.48 | |||||||||||
Svendborg [Member] | ' | ||||||||||||
Preliminary Purchase Price Allocation as of Acquisition Date | ' | ||||||||||||
At Acquisition | Measurement | At Acquisition | |||||||||||
Date | Period | Date (As | |||||||||||
Adjustments | Adjusted) | ||||||||||||
Purchase price, excluding acquisition costs of approximately $2.5 million | $ | 102,096 | $ | — | $ | 102,096 | |||||||
Cash and cash equivalents | 7,483 | — | 7,483 | ||||||||||
Trade receivables | 21,575 | (329 | ) | 21,246 | |||||||||
Inventories | 25,452 | (224 | ) | 25,228 | |||||||||
Prepaid and other | 5,511 | (76 | ) | 5,435 | |||||||||
Property, plant and equipment | 12,216 | — | 12,216 | ||||||||||
Other assets | 1,133 | — | 1,133 | ||||||||||
Intangible assets | 48,893 | — | 48,893 | ||||||||||
Total assets acquired | $ | 122,263 | $ | (629 | ) | $ | 121,634 | ||||||
Accounts payable | 4,833 | — | 4,833 | ||||||||||
Accrued expenses and other current liabilities | 9,620 | 168 | 9,788 | ||||||||||
Taxes payable | 10,254 | — | 10,254 | ||||||||||
Deferred tax liability | 11,483 | — | 11,483 | ||||||||||
Total liabilities assumed | $ | 36,190 | $ | 168 | $ | 36,358 | |||||||
Net assets acquired | 86,073 | (797 | ) | 85,276 | |||||||||
Excess of purchase price over fair value of net assets acquired | $ | 16,023 | $ | 797 | $ | 16,820 | |||||||
Amounts Recorded as Intangible Assets | ' | ||||||||||||
Customer relationships, subject to amortization | $ | 40,050 | |||||||||||
Trade names and trademarks, not subject to amortization | 8,500 | ||||||||||||
Patents | 343 | ||||||||||||
Total intangible assets | $ | 48,893 | |||||||||||
Inventories_Tables
Inventories (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Summary of Inventories | ' | ||||||||
Inventories at March 31, 2014 and December 31, 2013 consisted of the following: | |||||||||
March 31, | December 31, | ||||||||
2 0 14 | 2013 | ||||||||
Raw materials | $ | 52,703 | $ | 56,824 | |||||
Work in process | 18,953 | 18,432 | |||||||
Finished goods | 68,071 | 68,409 | |||||||
$ | 139,727 | $ | 143,665 | ||||||
Goodwill_and_Intangible_Assets1
Goodwill and Intangible Assets (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Goodwill And Intangible Assets Disclosure [Abstract] | ' | ||||||||||||||||
Changes in Goodwill | ' | ||||||||||||||||
Changes to goodwill from January 1, through March 31, 2014 were as follows: | |||||||||||||||||
2014 | |||||||||||||||||
Gross goodwill balance as of January 1 | $ | 136,149 | |||||||||||||||
Impact of changes in foreign currency | 81 | ||||||||||||||||
Measurement period adjustments related to acquisition of Svendborg (See Note 6) | 797 | ||||||||||||||||
Gross goodwill balance as of March 31 | 137,027 | ||||||||||||||||
Accumulated impairment as of January 1 | (31,810 | ) | |||||||||||||||
Impairment charge during the period | — | ||||||||||||||||
Accumulated impairment as of March 31 | (31,810 | ) | |||||||||||||||
Net goodwill balance March 31 | $ | 105,217 | |||||||||||||||
Other Intangible Assets | ' | ||||||||||||||||
Other intangible assets as of March 31, 2014 and December 31, 2013 consisted of the following: | |||||||||||||||||
31-Mar-14 | 31-Dec-13 | ||||||||||||||||
Cost | Accumulated | Cost | Accumulated | ||||||||||||||
Amortization | Amortization | ||||||||||||||||
Other intangible assets | |||||||||||||||||
Intangible assets not subject to amortization: | |||||||||||||||||
Tradenames and trademarks | $ | 42,985 | $ | — | $ | 42,985 | $ | — | |||||||||
Intangible assets subject to amortization: | |||||||||||||||||
Customer relationships | 118,914 | 44,821 | 118,914 | 42,645 | |||||||||||||
Product technology and patents | 6,062 | 5,762 | 6,062 | 5,719 | |||||||||||||
Impact of changes in foreign currency | (730 | ) | — | (829 | ) | — | |||||||||||
Total intangible assets | $ | 167,231 | $ | 50,583 | $ | 167,132 | $ | 48,364 | |||||||||
Warranty_Costs_Tables
Warranty Costs (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Guarantees [Abstract] | ' | ||||||||
Changes in Carrying Amount of Accrued Product Warranty Costs | ' | ||||||||
Changes in the carrying amount of accrued product warranty costs for each of the quarters ended March 31, 2014 and March 30, 2013 are as follows: | |||||||||
March 31, | March 30, | ||||||||
2014 | 2013 | ||||||||
Balance at beginning of period | $ | 8,739 | $ | 5,625 | |||||
Accrued current period warranty expense | 201 | 519 | |||||||
Payments | (580 | ) | (416 | ) | |||||
Balance at end of period | $ | 8,360 | $ | 5,728 | |||||
Pension_and_Other_Employee_Ben1
Pension and Other Employee Benefits (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Compensation And Retirement Disclosure [Abstract] | ' | ||||||||
Reconciliation of Benefit Obligation, Fair Value of Plan Assets and Funded Status of Respective Defined Benefit (Pension) and Postretirement Benefit Plans | ' | ||||||||
The following tables represent the reconciliation of the benefit obligation, fair value of plan assets and funded status of the respective defined benefit (pension) plans as of March 31, 2014 and March 30, 2013: | |||||||||
Quarter Ended | |||||||||
Pension Benefits | |||||||||
March 31, | March 30, | ||||||||
2014 | 2013 | ||||||||
Service cost | $ | 38 | $ | 38 | |||||
Interest cost | 273 | 246 | |||||||
Expected return on plan assets | (269 | ) | (267 | ) | |||||
Amortization of net gain | 27 | 42 | |||||||
Net periodic benefit cost (income) | $ | 69 | $ | 59 | |||||
Debt_Tables
Debt (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
Outstanding Debt Obligations | ' | ||||||||
Outstanding debt obligations at March 31, 2014 and December 31, 2013 were as follows: | |||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
Debt: | |||||||||
Revolving Credit Facility | $ | 35,000 | $ | 41,198 | |||||
Convertible Notes | 85,000 | 85,000 | |||||||
Term Loan Facility | 156,864 | 163,245 | |||||||
Equipment Loan | 4,737 | 4,155 | |||||||
Mortgages | 515 | 659 | |||||||
Capital leases | 155 | 178 | |||||||
Other | — | — | |||||||
Total debt | 282,271 | 294,435 | |||||||
Less: debt discount, net of accretion | (15,340 | ) | (16,163 | ) | |||||
Total debt, net of unaccreted discount | $ | 266,931 | $ | 278,272 | |||||
Less current portion of long-term debt | 17,784 | 16,924 | |||||||
Total long-term debt, net of unaccreted discount | $ | 249,147 | $ | 261,348 | |||||
Carrying Amount of Debt | ' | ||||||||
The carrying amount of the principal amount of the liability component, the unamortized discount, and the net carrying amount are as follows as of March 31, 2014: | |||||||||
Principal amount of debt | $ | 85,000 | |||||||
Unamortized discount | 15,340 | ||||||||
Carrying value of debt | $ | 69,660 | |||||||
Interest Expense Associated with Convertible Notes | ' | ||||||||
Interest expense associated with the Convertible Notes consisted of the following for the quarter ended March 31, 2014: | |||||||||
Contractual coupon rate of interest | $ | 584 | |||||||
Accretion of Convertible Notes discount and amortization of deferred financing costs | 911 | ||||||||
Interest expense for the convertible notes | $ | 1,495 | |||||||
Stockholders_Equity_Tables
Stockholders' Equity (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Equity [Abstract] | ' | ||||||||
Company's Restricted Stock Grants | ' | ||||||||
The following table sets forth the activity of the Company’s restricted stock and performance share grants in the quarter ended March 31, 2014: | |||||||||
Weighted-average | |||||||||
Shares | grant date fair value | ||||||||
Shares unvested January 1, 2014 | 149,635 | $ | 23.02 | ||||||
Shares granted | 112,225 | 33.65 | |||||||
Shares for which restrictions lapsed | (19,555 | ) | 34.07 | ||||||
Shares unvested March 31, 2014 | 242,305 | $ | 26.92 |
Derivative_Financial_Instrumen1
Derivative Financial Instruments (Tables) | 3 Months Ended | ||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||
Derivative Instruments And Hedging Activities Disclosure [Abstract] | ' | ||||||||||||||||||||
Summary of Swaps Recognized in Other Long-term Assets and in Other Comprehensive Income (Loss) | ' | ||||||||||||||||||||
The fair value of the swap recognized in other long-term assets and in other comprehensive income (loss) is as follows: | |||||||||||||||||||||
Fair Value | |||||||||||||||||||||
Notional | March 31, | December 31, | |||||||||||||||||||
Effective Date | Amount | Fixed Rate | Maturity | 2014 | 2013 | ||||||||||||||||
April 30, 2013 | $ | 90,000 | 0.626 | % | November 30, 2016 | $ | 218 | $ | 213 |
Concentrations_of_Credit_Segme1
Concentrations of Credit, Segment Data and Workforce (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Segment Reporting [Abstract] | ' | ||||||||
Net Sales to Third Parties by Geographic Region | ' | ||||||||
Net sales to third parties by geographic region are as follows: | |||||||||
Net Sales | |||||||||
Quarter Ended | |||||||||
March 31, | March 30 | ||||||||
2014 | 2013 | ||||||||
North America (primarily U.S.) | $ | 125,788 | $ | 120,548 | |||||
Europe | 67,836 | 54,205 | |||||||
Asia and other | 16,514 | 10,397 | |||||||
Total | $ | 210,138 | $ | 185,150 | |||||
Restructuring_Tables
Restructuring (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Restructuring And Related Activities [Abstract] | ' | ||||||||
Summary of Total Restructuring Expense | ' | ||||||||
The Company’s total restructuring expense, by major component for the quarters ended March 31, 2014 and March 30, 2013 was as follows: | |||||||||
Quarter Ended | Quarter Ended | ||||||||
March 31, | March 30, | ||||||||
2014 | 2013 | ||||||||
2012 | 2012 | ||||||||
Altra Plan | Altra Plan | ||||||||
Severance | $ | — | $ | 283 | |||||
Other | — | 37 | |||||||
Total cash expenses | $ | — | $ | 320 | |||||
Reconciliation of Accrued Restructuring Costs | ' | ||||||||
The following is a reconciliation of the accrued restructuring cost: | |||||||||
All Plans | |||||||||
Balance at January 1, 2014 | $ | 429 | |||||||
Restructuring expense incurred | — | ||||||||
Cash payments | (53 | ) | |||||||
Balance at March 31, 2014 | $ | 376 | |||||||
Organization_and_Nature_of_Ope1
Organization and Nature of Operations - Additional Information (Detail) (Brand [Member]) | 3 Months Ended |
Mar. 31, 2014 | |
Country | |
Product | |
Brand [Member] | ' |
Organization And Nature Of Business [Line Items] | ' |
Number of product lines | 40 |
Number of countries in which the company has production facilities | 11 |
Basis_of_Presentation_Addition
Basis of Presentation - Additional Information (Detail) | Jul. 11, 2012 |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | ' |
Percentage of ownership acquired | 85.00% |
Fair_Value_of_Financial_Instru1
Fair Value of Financial Instruments - Additional Information (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 30, 2013 |
In Millions, unless otherwise specified | |||
Fair Value, Inputs, Level 2 [Member] | Interest Rate Swap [Member] | ' | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' |
Estimated fair value of Interest rate swap | $0.20 | $0.20 | ' |
Convertible Notes [Member] | ' | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' |
Interest on notes | 2.75% | ' | 2.75% |
Carrying amount of financial instruments | 85 | ' | 85 |
Estimated fair value of financial instruments | 120.9 | 116.5 | ' |
Money Market Funds [Member] | ' | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' |
Cash and cash equivalents | $12.90 | $16.60 | ' |
Changes_in_Accumulated_Other_C2
Changes in Accumulated Other Comprehensive Income (Loss) by Component - Changes in Accumulated Other Comprehensive Income (Loss) by Component (Detail) (USD $) | 3 Months Ended | 3 Months Ended | ||||||||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 30, 2013 | Mar. 31, 2014 | Mar. 30, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 30, 2013 | Dec. 31, 2012 | Mar. 31, 2014 | Mar. 30, 2013 |
Gains and Losses on Cash Flow Hedges [Member] | Gains and Losses on Cash Flow Hedges [Member] | Defined Benefit Pension Plans [Member] | Defined Benefit Pension Plans [Member] | Defined Benefit Pension Plans [Member] | Defined Benefit Pension Plans [Member] | Cumulative Foreign Currency Translation Adjustment [Member] | Cumulative Foreign Currency Translation Adjustment [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) by Component, Beginning balance | ($18,396) | ($23,403) | $135 | ' | ($3,133) | ($3,133) | ($4,607) | ($4,607) | ($15,398) | ($18,796) |
Net current-period Other Comprehensive Income (Loss) | -49 | -6,883 | 5 | ' | ' | ' | ' | ' | -54 | -6,883 |
Accumulated Other Comprehensive Income (Loss) by Component, Ending balance | ($18,445) | ($30,286) | $140 | ' | ($3,133) | ($3,133) | ($4,607) | ($4,607) | ($15,452) | ($25,679) |
Net_Income_per_Share_Reconcili
Net Income per Share - Reconciliation of Basic to Diluted Net Income per Share (Detail) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 30, 2013 |
Earnings Per Share [Abstract] | ' | ' |
Net income attributable to Altra Industrial Motion Corp. | $11,365 | $11,880 |
Shares used in net income per common share - basic | 26,733 | 26,733 |
Dilutive effect of the equity premium on Convertible Notes at the average price of common stock | 660 | ' |
Incremental shares of unvested restricted common stock | 51 | 34 |
Shares used in net income per common share - diluted | 27,444 | 26,767 |
Earnings per share: | ' | ' |
Basic net income attributable to Altra Industrial Motion Corp. | $0.43 | $0.44 |
Diluted net income attributable to Altra Industrial Motion Corp. | $0.41 | $0.44 |
Net_Income_per_Share_Additiona
Net Income per Share - Additional Information (Detail) (USD $) | 3 Months Ended |
Mar. 31, 2014 | |
Earnings Per Share [Abstract] | ' |
Current conversion price per share of Convertible Notes | $27.02 |
Additional shares included in the diluted earnings per share | 660,000 |
Acquisitions_Additional_Inform
Acquisitions - Additional Information (Detail) | 12 Months Ended | 0 Months Ended | 3 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 17, 2013 | Dec. 17, 2013 | Mar. 31, 2014 | Mar. 31, 2014 |
Country | Svendborg [Member] | Svendborg [Member] | Svendborg [Member] | Svendborg [Member] | |
USD ($) | EUR (€) | Customer Relationships [Member] | |||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' |
Business acquisition cash consideration | ' | $110.20 | € 80.10 | ' | ' |
Cash remaining on the balance sheet upon closing the acquisition | ' | 7.5 | 5.4 | ' | ' |
Business acquisition number of countries in which entity operates | 7 | ' | ' | ' | ' |
Escrow deposits established for transfer pricing claims | ' | 11.6 | 8.5 | ' | ' |
Estimated liability for transfer pricing claims by the company | ' | 8.1 | ' | ' | ' |
Estimated receivables from transfer pricing claims by the company | ' | $8.10 | ' | ' | ' |
Business acquisition date | ' | ' | ' | 17-Dec-13 | ' |
Estimated useful lives | ' | ' | ' | ' | '17 years |
Acquisitions_Preliminary_Purch
Acquisitions - Preliminary Purchase Price Allocation as of Acquisition Date (Detail) (Svendborg [Member], USD $) | Dec. 17, 2013 |
In Thousands, unless otherwise specified | |
Business Acquisition [Line Items] | ' |
Purchase price, excluding acquisition costs | $102,096 |
Cash and cash equivalents | 7,483 |
Trade receivables | 21,246 |
Inventories | 25,228 |
Prepaid and other | 5,435 |
Property, plant and equipment | 12,216 |
Other assets | 1,133 |
Intangible assets | 48,893 |
Total assets acquired | 121,634 |
Accounts payable | 4,833 |
Accrued expenses and other current liabilities | 9,788 |
Taxes payable | 10,254 |
Deferred tax liability | 11,483 |
Total liabilities assumed | 36,358 |
Net assets acquired | 85,276 |
Excess of purchase price over fair value of net assets acquired | 16,820 |
At Acquisition Date [Member] | ' |
Business Acquisition [Line Items] | ' |
Purchase price, excluding acquisition costs | 102,096 |
Cash and cash equivalents | 7,483 |
Trade receivables | 21,575 |
Inventories | 25,452 |
Prepaid and other | 5,511 |
Property, plant and equipment | 12,216 |
Other assets | 1,133 |
Intangible assets | 48,893 |
Total assets acquired | 122,263 |
Accounts payable | 4,833 |
Accrued expenses and other current liabilities | 9,620 |
Taxes payable | 10,254 |
Deferred tax liability | 11,483 |
Total liabilities assumed | 36,190 |
Net assets acquired | 86,073 |
Excess of purchase price over fair value of net assets acquired | 16,023 |
Measurement Period Adjustments [Member] | ' |
Business Acquisition [Line Items] | ' |
Trade receivables | -329 |
Inventories | -224 |
Prepaid and other | -76 |
Total assets acquired | -629 |
Accrued expenses and other current liabilities | 168 |
Total liabilities assumed | 168 |
Net assets acquired | -797 |
Excess of purchase price over fair value of net assets acquired | $797 |
Acquisitions_Preliminary_Purch1
Acquisitions - Preliminary Purchase Price Allocation as of Acquisition Date (Parenthetical) (Detail) (Svendborg [Member], USD $) | 0 Months Ended |
In Millions, unless otherwise specified | Dec. 17, 2013 |
Business Acquisition [Line Items] | ' |
Acquisition costs | $2.50 |
At Acquisition Date [Member] | ' |
Business Acquisition [Line Items] | ' |
Acquisition costs | $2.50 |
Acquisitions_Amounts_Recorded_
Acquisitions - Amounts Recorded as Intangible Assets (Detail) (Svendborg [Member], USD $) | Dec. 17, 2013 |
In Thousands, unless otherwise specified | |
Intangible Asset Excluding Goodwill [Line Items] | ' |
Trade names and trademarks, not subject to amortization | $8,500 |
Total intangible assets | 48,893 |
Customer Relationships [Member] | ' |
Intangible Asset Excluding Goodwill [Line Items] | ' |
Customer relationships, subject to amortization | 40,050 |
Patents [Member] | ' |
Intangible Asset Excluding Goodwill [Line Items] | ' |
Customer relationships, subject to amortization | $343 |
Acquisitions_Proforma_Amount_o
Acquisitions - Proforma Amount on Acquisition Occurred (Detail) (USD $) | 3 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Mar. 30, 2013 |
Business Combinations [Abstract] | ' |
Total revenues | $205,119 |
Net income attributable to Altra Industrial Motion Corp. | $12,812 |
Basic earnings per share: | ' |
Net income attributable to Altra Industrial Motion Corp. | $0.48 |
Diluted earnings per share: | ' |
Net income attributable to Altra Industrial Motion Corp. | $0.48 |
Inventories_Summary_of_Invento
Inventories - Summary of Inventories (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ' | ' |
Raw materials | $52,703 | $56,824 |
Work in process | 18,953 | 18,432 |
Finished goods | 68,071 | 68,409 |
Inventories, net | $139,727 | $143,665 |
Inventories_Additional_Informa
Inventories - Additional Information (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 30, 2013 |
In Millions, unless otherwise specified | Inventory Valuation by LIFO Method [Member] | Inventory Valuation by LIFO Method [Member] | Inventory Valuation Provision [Member] | Inventory Valuation Provision [Member] |
Inventory [Line Items] | ' | ' | ' | ' |
Portion of total inventory valued by LIFO method | 7.30% | 7.50% | ' | ' |
Provision for valuation of sales component | ' | ' | $0 | $0 |
Goodwill_and_Intangible_Assets2
Goodwill and Intangible Assets - Changes in Goodwill (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Dec. 31, 2013 |
Goodwill And Intangible Assets Disclosure [Abstract] | ' | ' |
Gross goodwill balance as of January 1 | $136,149 | ' |
Impact of changes in foreign currency | 81 | ' |
Measurement period adjustments related to acquisition of Svendborg (See Note 6) | 797 | ' |
Gross goodwill balance as of March 31 | 137,027 | ' |
Accumulated impairment as of January 1 | -31,810 | ' |
Impairment charge during the period | ' | ' |
Accumulated impairment as of March 31 | -31,810 | ' |
Net goodwill balance March 31 | $105,217 | $104,339 |
Goodwill_and_Intangible_Assets3
Goodwill and Intangible Assets - Other Intangible Assets (Detail) (USD $) | 3 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Dec. 31, 2013 |
Schedule Of Finite And Indefinite Lived Intangible Assets [Line Items] | ' | ' |
Impact of changes in foreign currency, Cost | ($730) | ($829) |
Total intangible assets, Cost | 167,231 | 167,132 |
Total intangible assets, Accumulated Amortization | 50,583 | 48,364 |
Tradenames and Trademarks [Member] | ' | ' |
Schedule Of Finite And Indefinite Lived Intangible Assets [Line Items] | ' | ' |
Intangible assets not subject to amortization, Cost | 42,985 | 42,985 |
Customer Relationships [Member] | ' | ' |
Schedule Of Finite And Indefinite Lived Intangible Assets [Line Items] | ' | ' |
Intangible assets subject to amortization, Cost | 118,914 | 118,914 |
Total intangible assets, Accumulated Amortization | 44,821 | 42,645 |
Product Technology and Patents [Member] | ' | ' |
Schedule Of Finite And Indefinite Lived Intangible Assets [Line Items] | ' | ' |
Intangible assets subject to amortization, Cost | 6,062 | 6,062 |
Total intangible assets, Accumulated Amortization | $5,762 | $5,719 |
Goodwill_and_Intangible_Assets4
Goodwill and Intangible Assets - Additional Information (Detail) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 30, 2013 | |
Goodwill And Intangible Assets [Line Items] | ' | ' |
Amortization expense | $2,219,000 | $1,613,000 |
Estimated Amortization Expense for Intangible Assets [Member] | ' | ' |
Goodwill And Intangible Assets [Line Items] | ' | ' |
Remainder 2014 | 6,600,000 | ' |
Year 2015 | 8,800,000 | ' |
Year 2016 | 8,800,000 | ' |
Year 2017 | 8,800,000 | ' |
Year 2018 | 8,800,000 | ' |
Thereafter | $31,900,000 | ' |
Warranty_Costs_Additional_Info
Warranty Costs - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2014 | |
Maximum [Member] | ' |
Guarantor Obligations [Line Items] | ' |
Product warranty period | '2 years |
Minimum [Member] | ' |
Guarantor Obligations [Line Items] | ' |
Product warranty period | '3 months |
Warranty_Costs_Changes_in_Carr
Warranty Costs - Changes in Carrying Amount of Accrued Product Warranty Costs (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Guarantees [Abstract] | ' | ' |
Balance at beginning of period | $8,739 | $5,625 |
Accrued current period warranty expense | 201 | 519 |
Payments | -580 | -416 |
Balance at end of period | $8,360 | $5,728 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Income Tax Disclosure [Abstract] | ' | ' |
Accrued interest and penalties | $0.20 | $0.40 |
Pension_and_Other_Employee_Ben2
Pension and Other Employee Benefits - Reconciliation of Benefit Obligation, Fair Value of Plan Assets and Funded Status of Respective Defined Benefit (Pension) and Postretirement Benefit Plans (Detail) (Pension Benefits [Member], USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 30, 2013 |
Pension Benefits [Member] | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' |
Service cost | $38 | $38 |
Interest cost | 273 | 246 |
Expected return on plan assets | -269 | -267 |
Amortization of net gain | 27 | 42 |
Net periodic benefit cost (income) | $69 | $59 |
Pension_and_Other_Employee_Ben3
Pension and Other Employee Benefits - Additional Information (Detail) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2014 |
Compensation And Retirement Disclosure [Abstract] | ' |
Minimum cash contribution to pension plan | $0.20 |
Debt_Outstanding_Debt_Obligati
Debt - Outstanding Debt Obligations (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Debt Instrument [Line Items] | ' | ' |
Total debt | $282,271 | $294,435 |
Less: debt discount, net of accretion | -15,340 | -16,163 |
Total debt, net of unaccreted discount | 266,931 | 278,272 |
Less current portion of long-term debt | 17,784 | 16,924 |
Total long-term debt, net of unaccreted discount | 249,147 | 261,348 |
Revolving Credit Facility [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Total debt | 35,000 | 41,198 |
Convertible Notes [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Total debt | 85,000 | 85,000 |
Term Loan Facility [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Total debt | 156,864 | 163,245 |
Equipment Loan [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Total debt | 4,737 | 4,155 |
Mortgages [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Total debt | 515 | 659 |
Capital Leases [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Total debt | 155 | 178 |
Other [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Total debt | ' | ' |
Debt_Additional_Information_De
Debt - Additional Information (Detail) | 3 Months Ended | 3 Months Ended | 1 Months Ended | 3 Months Ended | 0 Months Ended | 12 Months Ended | 3 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Mar. 31, 2014 | Sep. 01, 2011 | Sep. 01, 2011 | Mar. 31, 2014 | Mar. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | |
USD ($) | USD ($) | Initial Conversion Price [Member] | Additional Term Loan [Member] | Additional Term Loan [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Minimum [Member] | Minimum [Member] | Minimum [Member] | Maximum [Member] | Maximum [Member] | Maximum [Member] | Convertible Debt [Member] | Convertible Debt [Member] | Convertible Notes [Member] | Convertible Notes [Member] | Convertible Notes [Member] | Term Loan Facility [Member] | Revolving Credit Agreement [Member] | Revolving Credit Agreement [Member] | Equipment and Working Capital Notes [Member] | Equipment and Working Capital Notes [Member] | Equipment and Working Capital Notes [Member] | Equipment and Working Capital Notes [Member] | Mortgages [Member] | Mortgages [Member] | Mortgages [Member] | Mortgages [Member] | Capital Leases [Member] | Capital Leases [Member] | |
USD ($) | USD ($) | EUR (€) | USD ($) | USD ($) | Eurodollar Loan [Member] | ABR Based Loans [Member] | USD ($) | Eurodollar Loan [Member] | ABR Based Loans [Member] | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | CNY | Minimum [Member] | Maximum [Member] | USD ($) | EUR (€) | USD ($) | EUR (€) | USD ($) | USD ($) | |||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Availability under credit facility agreement | ' | ' | ' | $94,375,000 | € 50,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $100,000,000 | $200,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate additional term loans | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 150,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Credit facility maturity date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'December 6, 2018 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument, maturity date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1-Mar-31 | ' | ' | ' | ' | 6-Dec-18 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Applicable margins for loans | ' | ' | ' | ' | ' | ' | ' | ' | 1.38% | 0.38% | ' | 1.88% | 0.88% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding on Revolving Credit Facility | ' | ' | ' | ' | ' | 35,000,000 | 41,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Letters of credit outstanding | 10,200,000 | 9,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount available under credit facility | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 149,000,000 | 154,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of capital stock not included in collateral | 65.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Coupon interest rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.75% | 2.75% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from the offering | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 81,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Adjustment of shares | 36.0985 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Principal amount of notes | 1,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Conversion price per share | $27.02 | ' | $27.70 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of sale price of common stock | 130.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Consecutive trading days | '30 days | ' | ' | ' | ' | ' | ' | '20 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of business day period | '5 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of consecutive trading days in measurement period | '10 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of measurement period | 97.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of convertible notes redeemable | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Convertible notes redeemable period one | 1-Mar-18 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Convertible notes redeemable period two | 1-Mar-21 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Convertible notes redeemable period three | 1-Mar-26 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Conversion price redemption exceed | 130.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 85,000,000 | ' | ' | 85,000,000 | 85,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 200,000 | 200,000 |
Debt component in note payable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 60,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Equity component in note payable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 24,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Discount rate for debt component | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8.25% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt issuance cost | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Adjustments to additional paid-in capital of convertible debt | 1,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt issuance cost, amortized | 2,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Effective interest rate of Senior Secured Notes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding letters of credit | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 90.00% | ' | ' | ' | ' | ' | ' |
Available to borrow loan amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,300,000 | 38,800,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5.04% | 6.69% | 2.90% | 2.90% | ' | ' | ' | ' |
Line of credit outstanding loan amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,700,000 | 29,200,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Description about maturity date of debt instrument | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'The note is due in installments from 2014 through 2016 | 'The note is due in installments from 2014 through 2016 | ' | ' | ' | ' | ' | ' | ' | ' |
Mortgage remaining principal balance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 500,000 | 400,000 | 700,000 | 500,000 | ' | ' |
Mortgage loan payable term | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | '3 years | ' | ' | ' | ' |
Borrowings under overdraft agreements | $0 | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt_Carrying_Amount_of_Debt_D
Debt - Carrying Amount of Debt (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Debt Instrument [Line Items] | ' | ' |
Carrying value of debt | $249,147,000 | $261,348,000 |
Convertible Debt [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Principal amount of debt | 85,000,000 | ' |
Unamortized discount | 15,340,000 | ' |
Carrying value of debt | $69,660,000 | ' |
Debt_Interest_Expense_Associat
Debt - Interest Expense Associated with Convertible Notes (Detail) (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2014 |
Debt Disclosure [Abstract] | ' |
Contractual coupon rate of interest | $584 |
Accretion of Convertible Notes discount and amortization of deferred financing costs | 911 |
Interest expense for the convertible notes | $1,495 |
Stockholders_Equity_Additional
Stockholders' Equity - Additional Information (Detail) (USD $) | 3 Months Ended | 0 Months Ended | 3 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 30, 2013 | Apr. 24, 2014 | Apr. 03, 2014 | Mar. 31, 2014 |
Subsequent Event [Member] | Subsequent Event [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' |
Cash dividend | $0.10 | $0.08 | $0.12 | ' | ' |
Dividend paid | ' | ' | ' | $2.70 | ' |
Dividends payable date of record | 18-Mar-14 | ' | 18-Jun-14 | ' | ' |
Dividend paid date | 3-Apr-14 | ' | ' | ' | ' |
Restricted shares for vesting period | ' | ' | ' | ' | '5 years |
Compensation expense | 0.9 | 0.8 | ' | ' | ' |
Unrecognized compensation cost | 5.9 | ' | ' | ' | ' |
Weighted average remaining period | '3 years | ' | ' | ' | ' |
Fair market value of the shares | $0.70 | ' | ' | ' | ' |
Stockholders_Equity_Companys_U
Stockholders' Equity - Company's Unvested Restricted Stock Grants (Detail) (USD $) | 3 Months Ended |
Mar. 31, 2014 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' |
Shares unvested, beginning balance | 149,635 |
Shares granted | 112,225 |
Shares for which restrictions lapsed | -19,555 |
Shares unvested, ending balance | 242,305 |
Weighted-average grant date fair value, beginning balance | $23.02 |
Weighted-average grant date fair value, Shares granted | $33.65 |
Weighted-average grant date fair value, Shares for which restrictions lapsed | $34.07 |
Weighted-average grant date fair value, ending balance | $26.92 |
Derivative_Financial_Instrumen2
Derivative Financial Instruments - Additional Information (Detail) (USD $) | 3 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2014 | Apr. 30, 2013 | |
Interest Rate Swap [Member] | Interest Rate Swap [Member] | ||
Debt Instrument [Line Items] | ' | ' | ' |
Outstanding borrowings | ' | $90,000,000 | $90,000,000 |
Fixed Rate | ' | 0.63% | 0.63% |
Ineffectiveness associated with the swap | $0 | ' | ' |
Derivative_Financial_Instrumen3
Derivative Financial Instruments - Summary of Swaps Recognized in Other Long-term Assets and in Other Comprehensive Income (Loss) (Detail) (Interest Rate Swap [Member], USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Dec. 31, 2013 | Apr. 30, 2013 |
Interest Rate Swap [Member] | ' | ' | ' |
Derivative [Line Items] | ' | ' | ' |
Effective Date | 30-Apr-13 | ' | ' |
Notional Amount | $90,000 | ' | $90,000 |
Fixed Rate | 0.63% | ' | 0.63% |
Maturity | 30-Nov-16 | ' | ' |
Fair Value | $218 | $213 | ' |
Concentrations_of_Credit_Segme2
Concentrations of Credit, Segment Data and Workforce - Additional Information (Detail) (USD $) | 3 Months Ended | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 30, 2013 |
Segment | Sales [Member] | Sales [Member] | ||
Customer | Customer | |||
Concentration Risk [Line Items] | ' | ' | ' | ' |
Maximum revenue percentage from any one customer | ' | ' | 10.00% | 10.00% |
Number of customers representing over 10% of total sales | ' | ' | 0 | 0 |
Sales contract payments due period | '30 days | ' | ' | ' |
Number of operating segments | 3 | ' | ' | ' |
Number of reportable segments | 1 | ' | ' | ' |
Number of operating segments expected to have similar long-term average gross profit margins | 3 | ' | ' | ' |
Net assets of foreign subsidiaries | $141.80 | $138.70 | ' | ' |
Concentrations_of_Credit_Segme3
Concentrations of Credit, Segment Data and Workforce - Net Sales to Third Parties by Geographic Region (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 30, 2013 |
Concentration Risk [Line Items] | ' | ' |
Net sales | $210,138 | $185,150 |
North America (Primarily U.S.) [Member] | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Net sales | 125,788 | 120,548 |
Europe [Member] | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Net sales | 67,836 | 54,205 |
Asia and Other [Member] | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Net sales | $16,514 | $10,397 |
Restructuring_Additional_Infor
Restructuring - Additional Information (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 30, 2013 |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Restructuring charges | ' | $320 |
2012 Altra Plan [Member] | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Restructuring charges | ' | $320 |
Restructuring_Summary_of_Total
Restructuring - Summary of Total Restructuring Expense (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 30, 2013 |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Total cash expenses | ' | $320 |
2012 Altra Plan [Member] | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Severance | ' | 283 |
Other | ' | 37 |
Total cash expenses | ' | $320 |
Restructuring_Reconciliation_o
Restructuring - Reconciliation of Accrued Restructuring Costs (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 30, 2013 |
Related Party Transactions [Abstract] | ' | ' |
Beginning Balance | $429 | ' |
Restructuring expense incurred | ' | 320 |
Cash payments | -53 | ' |
Ending Balance | $376 | ' |
Commitments_and_Contingencies_
Commitments and Contingencies - Additional Information (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Commitments And Contingencies Disclosure [Abstract] | ' | ' |
Potential litigation | $0 | $0 |
Subsequent_Events_Additional_I
Subsequent Events - Additional Information (Detail) (USD $) | 3 Months Ended | 0 Months Ended | |
Mar. 31, 2014 | Mar. 30, 2013 | Apr. 24, 2014 | |
Subsequent Event [Member] | |||
Subsequent Event [Line Items] | ' | ' | ' |
Dividend declared date | ' | ' | 24-Apr-14 |
Dividend payable date | ' | ' | 2-Jul-14 |
Dividend record date | 18-Mar-14 | ' | 18-Jun-14 |
Dividend per share | $0.10 | $0.08 | $0.12 |