Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Feb. 23, 2015 | Jun. 30, 2014 |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | ALTRA INDUSTRIAL MOTION CORP. | ||
Entity Central Index Key | 1374535 | ||
Current Fiscal Year End Date | -19 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 26,419,588 | ||
Entity Public Float | $950 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $47,503 | $63,604 |
Trade receivables, less allowance for doubtful accounts of $2,302 and $2,245 at December 31, 2014 and 2013, respectively | 106,458 | 109,084 |
Inventories | 132,736 | 143,665 |
Deferred income taxes | 9,240 | 9,754 |
Income tax receivable | 6,247 | 5,032 |
Prepaid expenses and other current assets | 8,617 | 18,066 |
Total current assets | 310,801 | 349,205 |
Property, plant and equipment, net | 156,366 | 157,535 |
Intangible assets, net | 110,730 | 118,768 |
Goodwill | 102,087 | 104,339 |
Deferred income taxes | 987 | 934 |
Other non-current assets, net | 3,592 | 4,895 |
Total assets | 684,563 | 735,676 |
Current liabilities: | ||
Accounts payable | 44,298 | 51,180 |
Accrued payroll | 23,254 | 23,983 |
Accruals and other current liabilities | 33,591 | 34,979 |
Income tax payable | 3,189 | 12,963 |
Deferred income taxes | 120 | 44 |
Current portion of long-term debt | 15,176 | 16,924 |
Total current liabilities | 119,628 | 140,073 |
Long-term debt — less current portion and net of unaccreted discount | 240,576 | 261,348 |
Deferred income taxes | 53,226 | 53,813 |
Pension liabilities | 9,993 | 8,025 |
Long-term taxes payable | 629 | 1,038 |
Other long-term liabilities | 869 | 1,055 |
Redeemable non-controlling interest | 883 | 991 |
Commitments and Contingencies (Note 14) | ||
Stockholders’ equity: | ||
Preferred stock ($0.0001 par value, 10,000,000 shares authorized, none issued and outstanding at December 31, 2014 and 2013, respectively) | 0 | 0 |
Common stock ($0.001 par value, 90,000,000 shares authorized, 26,353,755 and 26,819,795 issued and outstanding at December 31, 2014 and 2013, respectively) | 26 | 27 |
Additional paid-in capital | 139,087 | 154,471 |
Retained earnings | 161,061 | 133,231 |
Accumulated other comprehensive loss | -41,415 | -18,396 |
Total stockholders’ equity | 258,759 | 269,333 |
Total liabilities, non-controlling interest and stockholders’ equity | $684,563 | $735,676 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $2,302 | $2,245 |
Preferred Stock, par value (in usd per share) | $0.00 | $0.00 |
Preferred Stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred Stock, shares issued | 0 | 0 |
Preferred Stock, shares outstanding | 0 | 0 |
Common stock, par value (in usd per share) | $0.00 | $0.00 |
Common stock, shares authorized | 90,000,000 | 90,000,000 |
Common stock, shares issued | 26,353,755 | 26,819,795 |
Common stock, shares outstanding | 26,353,755 | 26,819,795 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Statement [Abstract] | |||
Net sales | $819,817 | $722,218 | $731,990 |
Cost of sales | 570,948 | 506,837 | 513,442 |
Gross profit | 248,869 | 215,381 | 218,548 |
Operating expenses: | |||
Selling, general and administrative expenses | 156,471 | 130,155 | 127,044 |
Research and development expenses | 15,522 | 12,536 | 11,457 |
Restructuring costs | 1,767 | 1,111 | 3,196 |
Total operating expenses | 173,760 | 143,802 | 141,697 |
Income from operations | 75,109 | 71,579 | 76,851 |
Other non-operating income and expense: | |||
Interest expense, net | 11,994 | 10,586 | 40,790 |
Other non-operating expense (income), net | 3 | -1,657 | -1,702 |
Total other non-operating expense (income), net | 11,991 | 12,243 | 42,492 |
Total | 63,118 | 59,336 | 34,359 |
Provision for income taxes | 22,936 | 19,151 | 10,154 |
Net income | 40,182 | 40,185 | 24,205 |
Net (income) loss attributable to non-controlling interest | 15 | -90 | -88 |
Net income attributable to Altra Industrial Motion Corp. | $40,167 | $40,275 | $24,293 |
Weighted average shares, basic | 26,713 | 26,766 | 26,656 |
Weighted average shares, diluted | 27,403 | 26,841 | 26,756 |
Earnings per share: | |||
Basic net income attributable to Altra Industrial Motion Corp. (in usd per share) | $1.50 | $1.50 | $0.91 |
Diluted net income attributable to Altra Industrial Motion Corp. (in usd per share) | $1.47 | $1.50 | $0.91 |
Cash dividend declared (in usd per share) | $0.46 | $0.38 | $0.16 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Statement of Comprehensive Income [Abstract] | |||
Net income | $40,182 | $40,185 | $24,205 |
Other Comprehensive Income (loss): | |||
Pension liability adjustment, net of tax | -1,685 | 1,474 | -2,122 |
Change in fair value of interest rate swap, net of tax | 8 | 135 | 0 |
Foreign currency translation adjustment, net of tax | -21,342 | 3,398 | 3,795 |
Total Comprehensive income | 17,163 | 45,192 | 25,878 |
Comprehensive (income) loss attributable to non-controlling interest | -108 | 248 | 88 |
Comprehensive income attributable to Altra Industrial Motion Corp. | $17,055 | $45,440 | $25,966 |
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, unless otherwise specified | ||||||
Beginning Balance at Dec. 31, 2010 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net (income) loss attributable to non-controlling interest | ($88) | |||||
Ending Balance at Dec. 31, 2011 | 208,396 | 27 | 150,234 | 83,211 | -25,076 | 0 |
Beginning Balance, Shares (in shares) at Dec. 31, 2011 | 26,600,000 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock based compensation and vesting of restricted stock | 1,954 | 0 | 1,954 | |||
Stock based compensation and vesting of restricted stock (in shares) | 124,000 | |||||
Net income attributable to Altra Industrial Motion Corp. | 24,293 | 24,293 | ||||
Net (income) loss attributable to non-controlling interest | 88 | |||||
Fair value of non-controlling interest at acquisition | 1,327 | |||||
Dividends declared | -4,304 | -4,304 | ||||
Cumulative foreign currency translation adjustment, net of tax expense | 3,795 | 3,795 | ||||
Minimum Pension adjustment, net of tax expense | -2,122 | -2,122 | ||||
Ending Balance at Dec. 31, 2012 | 232,012 | 27 | 152,188 | 103,200 | -23,403 | 1,239 |
Ending Balance, Shares (in shares) at Dec. 31, 2012 | 26,724,000 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock based compensation and vesting of restricted stock | 2,283 | 2,283 | ||||
Stock based compensation and vesting of restricted stock (in shares) | 96,000 | |||||
Net income attributable to Altra Industrial Motion Corp. | 40,275 | 40,275 | ||||
Net (income) loss attributable to non-controlling interest | 90 | -90 | ||||
Dividends declared | -10,244 | -10,244 | ||||
Cumulative foreign currency translation adjustment, net of tax expense | 3,398 | 3,398 | -158 | |||
Minimum Pension adjustment, net of tax expense | 1,474 | 1,474 | ||||
Change in fair value of interest rate swap, net of tax expense | 135 | 135 | ||||
Ending Balance at Dec. 31, 2013 | 269,333 | 27 | 154,471 | 133,231 | -18,396 | 991 |
Ending Balance, Shares (in shares) at Dec. 31, 2013 | 26,820,000 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock based compensation and vesting of restricted stock | 2,233 | 2,233 | ||||
Stock based compensation and vesting of restricted stock (in shares) | 79,000 | |||||
Net income attributable to Altra Industrial Motion Corp. | 40,167 | 40,167 | ||||
Net (income) loss attributable to non-controlling interest | -15 | 15 | ||||
Dividends declared | -12,337 | -12,337 | ||||
Cumulative foreign currency translation adjustment, net of tax expense | -21,342 | -21,342 | -123 | |||
Minimum Pension adjustment, net of tax expense | -1,685 | -1,685 | ||||
Change in fair value of interest rate swap, net of tax expense | 8 | 8 | ||||
Repurchases of common stock (in shares) | -545,154 | -545,154 | ||||
Repurchases of common stock | -17,618 | -1 | -17,617 | |||
Ending Balance at Dec. 31, 2014 | $258,759 | $26 | $139,087 | $161,061 | ($41,415) | $883 |
Ending Balance, Shares (in shares) at Dec. 31, 2014 | 26,353,846 |
Consolidated_Statement_of_Stoc1
Consolidated Statement of Stockholders' Equity (Parenthetical) (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Statement of Stockholders' Equity [Abstract] | |||
Change in fair value of interest rate swap, tax expense | $78 | ||
Minimum Pension adjustment, tax expense | 478 | 800 | 1,388 |
Tax expense for foreign currency | $203 | $50 | $994 |
Cash dividend declared (in usd per share) | $0.46 | $0.38 | $0.16 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash flows from operating activities | |||
Net income | $40,182 | $40,185 | $24,205 |
Adjustments to reconcile net income to net cash flows provided by operating activities: | |||
Depreciation | 23,118 | 21,419 | 20,537 |
Amortization of intangible assets | 9,019 | 6,505 | 6,839 |
Amortization and write-offs of deferred loan costs | 927 | 873 | 6,006 |
(Gain) loss on foreign currency, net | -157 | 742 | -125 |
Amortization of inventory fair value adjustment | 2,376 | 0 | 122 |
Accretion and write-off of debt discount and premium | 3,407 | 3,143 | 4,869 |
(Gain) loss on disposal/impairment of fixed assets | -92 | 147 | 251 |
Provision (benefit) for deferred taxes | 2,712 | 3,464 | -625 |
Stock-based compensation | 3,101 | 3,173 | 2,696 |
Changes in operating assets and liabilities: | |||
Trade receivables | -1,050 | 5,791 | 836 |
Inventories | 5,402 | 6,412 | 4,084 |
Accounts payable and accrued liabilities | -6,055 | -708 | -6,640 |
Other current assets and liabilities | 860 | 2,156 | 726 |
Other operating assets and liabilities | 749 | -3,677 | -3,863 |
Net cash provided by operating activities | 84,499 | 89,625 | 59,918 |
Cash flows from investing activities | |||
Purchase of property, plant and equipment | -28,050 | -27,823 | -31,346 |
Proceeds from sale of land | 848 | 0 | 0 |
Net cash used in investing activities | -42,294 | -130,005 | -38,770 |
Cash flows from financing activities | |||
Payment of debt issuance costs | 0 | -670 | -2,454 |
Payments on term loan facility | -23,247 | -5,625 | 0 |
Payments on revolving credit facility | -9,190 | -59,304 | |
Dividend payments | -15,033 | -7,548 | -4,304 |
Proceeds from Equipment Loan | 2,870 | 2,999 | 1,100 |
Payments of equipment and working capital notes | -1,594 | 0 | 0 |
Borrowing under Revolving Credit Facility | 8,000 | 21,198 | 0 |
Proceeds from Bauer mortgage | 3,647 | 0 | 0 |
Borrowing under Additional Term Loan | 0 | 68,871 | 0 |
Shares surrendered for tax withholding | -1,158 | -1,174 | -949 |
Payment on mortgages and other debt | -642 | -756 | -1,199 |
Common stock repurchase under share repurchase program | -17,618 | ||
Proceeds from Former Term Loan Facility and Revolving Credit Facility | 0 | 0 | 179,304 |
Net payments on capital leases | 0 | 0 | -333 |
Net cash (used) provided by financing activities | -53,965 | 17,991 | -29,880 |
Effect of exchange rate changes on cash and cash equivalents | -4,341 | 839 | 1,371 |
Net change in cash and cash equivalents | -16,101 | -21,550 | -7,361 |
Cash and cash equivalents at beginning of year | 63,604 | 85,154 | 92,515 |
Cash and cash equivalents at end of period | 47,503 | 63,604 | 85,154 |
Interest | 7,618 | 6,704 | 30,891 |
Income taxes | 31,631 | 13,398 | 12,397 |
Non-cash Financing and Investing: | |||
Acquisition of property, plant and equipment included in accounts payable | 1,642 | 1,179 | 574 |
Dividend accrued | 0 | 2,696 | 0 |
Acquisition of property, plant and equipment through capital leases | 1 | 0 | 0 |
San Marcos [Member] | |||
Cash flows from financing activities | |||
Redemption of variable rate demand revenue bonds related to the San Marcos Facility | 0 | 0 | -3,000 |
Mt Pleasant Facility (Member) | |||
Cash flows from investing activities | |||
Proceeds from sale of Mt. Pleasant Facility | 0 | 578 | 0 |
Svendborg [Member] | |||
Cash flows from investing activities | |||
Acquisition, net of cash received | 0 | -94,613 | 0 |
Cash paid to escrow agent for Svendborg Transfer Pricing Claim liability | 0 | -8,147 | 0 |
Lamiflex [Member] | |||
Cash flows from investing activities | |||
Acquisition, net of cash received | 0 | 0 | -7,424 |
Bauer [Member] | |||
Cash flows from investing activities | |||
Acquisition, net of cash received | -15,092 | 0 | 0 |
Senior Secured Notes [Member] | |||
Cash flows from financing activities | |||
Purchase of 8 1/8% Senior Secured Notes | $0 | $0 | ($198,045) |
Consolidated_Statements_of_Cas1
Consolidated Statements of Cash Flows (Parenthetical) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Guardian [Member] | |||
Cash acquired from acquisition | $2,000 | ||
Svendborg [Member] | |||
Cash acquired from acquisition | 7,500 | ||
Lamiflex [Member] | |||
Cash acquired from acquisition | $68 |
Description_of_Business_and_Su
Description of Business and Summary of Significant Accounting Policies | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||||||||||||
Description of Business and Summary of Significant Accounting Policies | Description of Business and Summary of Significant Accounting Policies | |||||||||||||||
Basis of Preparation and Description of Business | ||||||||||||||||
Headquartered in Braintree, Massachusetts, Altra Industrial Motion Corp. (the “Company”) 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 42 product lines with production facilities in twelve countries. Altra’s leading brands include Ameridrives Couplings, Bauer Gear Motor, Bibby Turboflex, Boston Gear, Delroyd Worm Gear, Formsprag Clutch, Guardian Couplings, 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 former wholly owned subsidiary, changed its name to Altra Power Transmission, Inc. In December 2014, Altra Power Transmission, Inc. was merged into Altra Industrial Motion Corp. | ||||||||||||||||
Principles of Consolidation | ||||||||||||||||
The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. | ||||||||||||||||
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 equivalent shares 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: | ||||||||||||||||
Year Ended December, 31 | ||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
Net income attributable to Altra Industrial Motion Corp. | $ | 40,167 | $ | 40,275 | $ | 24,293 | ||||||||||
Shares used in net income per common share — basic | 26,713 | 26,766 | 26,656 | |||||||||||||
Dilutive effect of the equity premium on Convertible Notes at the average price of common stock | 612 | — | — | |||||||||||||
Incremental shares of unvested restricted common stock | 78 | 75 | 100 | |||||||||||||
Shares used in net income per common share — diluted | 27,403 | 26,841 | 26,756 | |||||||||||||
Earnings per share: | ||||||||||||||||
Basic net income attributable to Altra Industrial Motion Corp. | $ | 1.5 | $ | 1.5 | $ | 0.91 | ||||||||||
Diluted net income attributable to Altra Industrial Motion Corp. | $ | 1.47 | $ | 1.5 | $ | 0.91 | ||||||||||
During the year ended December 31, 2014, the average price of the Company's common stock exceeded the current conversion price of the Company's Convertible Notes resulting in additional shares being included in net income per share in the diluted earnings per share calculation above. The Company excluded 2,571,130 shares in 2014, 3,137,351 shares in 2013 and 3,094,706 shares in 2012 (amounts not in thousands) related to the Convertible Notes (See Note 9) from the above earnings per share calculation as these shares were anti-dilutive. | ||||||||||||||||
Fair Value of Financial Instruments | ||||||||||||||||
The carrying values of financial instruments, including accounts receivable, cash equivalents, accounts payable, and other accrued liabilities are carried at cost, which approximates fair value. Debt under the Company’s Credit Agreement with certain financial institutions including the Term Loan Facility of $133,697,000 and a Revolving Credit Facility of $200,000,000 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 December 31, 2014 and 2013. The estimated fair value of the Convertible Notes at December 31, 2014 and 2013 was $99.0 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 December 31, 2014 and 2013 are money market fund investments of $0.3 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”) as of December 31, 2014 and 2013 was $0.1 million and $0.1 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. | ||||||||||||||||
Use of Estimates | ||||||||||||||||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the financial statements. Actual results could differ from those estimates. | ||||||||||||||||
Non-controlling Interest | ||||||||||||||||
On July 11, 2012, the Company acquired 85% of privately held Lamiflex do Brasil Equipamentos Industriais Ltda. (“Lamiflex”). | ||||||||||||||||
The Company recorded the redeemable non-controlling interest from its acquisition of an 85% ownership interest of Lamiflex at fair value at the date of acquisition. In connection with this acquisition, the Company entered into put and call option agreements with the minority shareholders for the potential purchase of the non-controlling interest at a future date at a value based on a contractually determined formula. As a result of the option agreements, the non-controlling interest is considered redeemable and is classified as temporary equity on the Company’s consolidated balance sheet. The non-controlling interest is reviewed at each subsequent reporting period and adjusted, as needed, to reflect its then redemption value. | ||||||||||||||||
Foreign Currency Translation | ||||||||||||||||
Assets and liabilities of subsidiaries operating outside of the United States with a functional currency other than the U.S. Dollar are translated into U.S. Dollars using exchange rates at the end of the respective period. Revenues and expenses are translated at average exchange rates effective during the respective period. | ||||||||||||||||
Foreign currency translation adjustments are included in accumulated other comprehensive income as a separate component of stockholders’ equity. Net foreign currency transaction gains and losses are included in the results of operations in the period incurred and included in other non-operating expense (income), net in the accompanying statements of income. | ||||||||||||||||
Trade Receivables | ||||||||||||||||
An allowance for doubtful accounts is recorded for estimated collection losses that will be incurred in the collection of receivables. Estimated losses are based on historical collection experience, as well as a review by management of the status of all receivables. Collection losses have been within the Company’s expectations. | ||||||||||||||||
Inventories | ||||||||||||||||
Inventories are stated at the lower of cost or market using the first-in, first-out (“FIFO”) method for all entities excluding one of the Company’s subsidiaries, TB Wood’s. TB Wood’s inventory is stated at the lower of cost or market, principally using the last-in, first-out (“LIFO”) method. Inventory stated using the LIFO method approximates 7.0% and 7.5% of total inventory at December 31, 2014 and 2013, respectively. | ||||||||||||||||
The cost of inventories acquired by the Company in its acquisitions reflect fair value at the date of acquisition as determined by the Company based on the replacement cost of raw materials, the sales price of the finished goods less an appropriate amount representing the expected profitability from selling efforts, and for work-in-process the sales price of the finished goods less an appropriate amount representing the expected profitability from selling efforts and costs to complete. | ||||||||||||||||
The Company periodically reviews its quantities of inventories on hand and compares these amounts to the expected usage of each particular product or product line. The Company records a charge to cost of sales for any amounts required to reduce the carrying value of inventories to its estimated net realizable value. | ||||||||||||||||
Property, Plant and Equipment | ||||||||||||||||
Property, plant and equipment are stated at cost, net of accumulated depreciation. | ||||||||||||||||
Depreciation of property, plant and equipment, including capital leases is provided using the straight-line method over the estimated useful life of the asset, as follows: | ||||||||||||||||
Buildings and improvements | 15 to 45 years | |||||||||||||||
Machinery and equipment | 2 to 15 years | |||||||||||||||
Capital lease | Life of lease | |||||||||||||||
Leasehold improvements are depreciated on a straight-line basis over the estimated life of the asset or the life of the lease, if shorter. | ||||||||||||||||
Improvements and replacements are capitalized to the extent that they increase the useful economic life or increase the expected economic benefit of the underlying asset. Repairs and maintenance expenditures are charged to expense as incurred. | ||||||||||||||||
Intangible Assets | ||||||||||||||||
Intangible assets represent product technology, patents, tradenames, trademarks and customer relationships. Product technology, patents and customer relationships are amortized on a straight-line basis over 8 to 17 years, which approximates the period of economic benefit. The tradenames and trademarks are considered indefinite-lived assets and are not being amortized. Intangibles are stated at fair value on the date of acquisition. Intangibles are stated net of accumulated amortization. | ||||||||||||||||
Goodwill | ||||||||||||||||
Goodwill represents the excess of the purchase price paid by the Company over the fair value of the net assets acquired in each of the Company’s acquisitions. | ||||||||||||||||
Impairment of Goodwill and Indefinite-Lived Intangible Assets | ||||||||||||||||
The Company conducts an annual impairment review of goodwill and indefinite-lived intangible assets in December of each year, unless events occur which trigger the need for an interim impairment review. | ||||||||||||||||
In connection with the Company’s annual impairment review, goodwill is assessed for impairment by comparing the fair value of the reporting unit to the carrying value using a two-step approach. In the first step, the Company estimates future cash flows based upon historical results and current market projections, discounted at a market comparable rate. If the carrying amount of the reporting unit exceeds the estimated fair value, impairment may be present, the Company would then be required to perform a second step in its impairment analysis. In the second step, the Company would evaluate impairment losses based upon the fair value of the underlying assets and liabilities of the reporting unit, including any unrecognized intangible assets, and estimate the implied fair value of the goodwill. An impairment loss is recognized to the extent that a reporting unit’s recorded value of the goodwill asset exceeded its deemed fair value. In addition, to the extent the implied fair value of any indefinite-lived intangible asset is less than the asset’s carrying value, an impairment loss is recognized on those assets. The Company did not identify any impairment of goodwill during the periods presented. | ||||||||||||||||
For our indefinite-lived intangible assets, mainly trademarks, we estimated the fair value first by estimating the total revenue attributable to the trademarks for each of the reporting units. Second, we estimated an appropriate royalty rate using the return on assets method by estimating the required financial return on our assets, excluding trademarks, less the overall return generated by our total asset base. The return as a percentage of revenue provides an indication of our royalty rate (between 1.0% and 1.25%). We compared the estimated fair value of our trademarks with the carrying value of the trademarks and did not identify any impairment. The Company did not identify any impairment of indefinite-lived intangible assets during the periods presented. | ||||||||||||||||
Preparation of forecasts of revenue and profitability growth for use in the long-range plan and the discount rate require significant use of judgment. Changes to the discount rate and the forecasted profitability could affect the estimated fair value of one or more of the Company’s reporting units and could result in a goodwill impairment charge in a future period. | ||||||||||||||||
Impairment of Long-Lived Assets Other Than Goodwill and Indefinite-Lived Intangible Assets | ||||||||||||||||
Long-lived assets, including definite-lived intangible assets, are reviewed for impairment when events or circumstances indicate that the carrying amount of a long-lived asset may not be recovered. Long-lived assets are considered to be impaired if the carrying amount of the asset exceeds the undiscounted future cash flows expected to be generated by the asset over its remaining useful life. If an asset is considered to be impaired, the impairment is measured by the amount by which the carrying amount of the asset exceeds its fair value, and is charged to results of operations at that time. | ||||||||||||||||
The Company did not identify any impairment of long-lived assets in the periods presented. | ||||||||||||||||
Determining fair values based on discounted cash flows requires management to make significant estimates and assumptions, including forecasting of revenue and profitability growth for use in the long-range plan and estimating appropriate discount rates. Changes to the discount rate and the forecasted profitability could affect the estimated fair value of one or more of the Company’s indefinite-lived intangible assets and could result in an impairment charge in a future period. | ||||||||||||||||
Debt Issuance Costs | ||||||||||||||||
Costs directly related to the issuance of debt are capitalized, included in other non-current assets and amortized using the effective interest method over the term of the related debt obligation. The net carrying value of debt issuance costs was approximately $3.2 million and $4.1 million at December 31, 2014 and 2013, respectively. | ||||||||||||||||
Revenue Recognition | ||||||||||||||||
Product revenues are recognized, net of sales tax collected, at the time title and risk of loss pass to the customer, which generally occurs upon shipment to the customer. Product return reserves are accrued at the time of sale based on the historical relationship between shipments and returns, and are recorded as a reduction of net sales. | ||||||||||||||||
Certain large distribution customers receive annual volume discounts, which are estimated at the time the sale is recorded based on the estimated annual sales. | ||||||||||||||||
Shipping and Handling Costs | ||||||||||||||||
Shipping and handling costs associated with sales are classified as a component of cost of sales. Amounts collected from our customers for shipping and handling are recognized as revenue. | ||||||||||||||||
Warranty Costs | ||||||||||||||||
Estimated expenses related to product warranties are accrued at the time products are sold to customers. Estimates are established using historical information as to the nature, frequency, and average costs of warranty claims. See Note 6 to the consolidated financial statements. | ||||||||||||||||
Self-Insurance | ||||||||||||||||
Certain exposures are self-insured up to pre-determined amounts, above which third-party insurance applies, for medical claims, workers’ compensation, vehicle insurance, product liability costs and general liability exposure. The accompanying balance sheets include reserves for the estimated costs associated with these self-insured risks, based on historic experience factors and management’s estimates for known and anticipated claims. A portion of medical insurance costs are offset by charging employees a premium equivalent to group insurance rates. | ||||||||||||||||
Research and Development | ||||||||||||||||
Research and development costs are expensed as incurred. | ||||||||||||||||
Advertising | ||||||||||||||||
Advertising costs are charged to selling, general and administrative expenses as incurred and amounted to approximately $2.9 million, $2.5 million and $2.1 million, for the years ended December 31, 2014, 2013, and 2012, respectively. | ||||||||||||||||
Stock-Based Compensation | ||||||||||||||||
The Company's 2004 Equity Incentive Plan (the “2004 Plan”) permitted the grant of various forms of stock based compensation to our officers and senior level employees. The 2004 Plan expired in 2014 and, upon expiration, there were 750,576 shares subject to outstanding awards under the 2004 Plan. The 2014 Omnibus Incentive Plan (the “2014 Plan”) was approved by the Company's shareholders at its 2014 annual meeting. The 2014 Plan provides for various forms of stock based compensation to our directors, executive personnel and other key employees and consultants. Under the 2014 Plan, the total number of shares of common stock available for delivery pursuant to the grant of awards (“Awards”) was originally 750,000. Shares of our common stock subject to Awards or awarded under the 2004 Plan and outstanding as of the effective date of the 2014 Plan (except for substitute awards) that terminate without being exercised, expire, are forfeited or canceled, are exchanged for Awards that did not involve shares of common stock, are not issued on the stock settlement of a stock appreciation right, are withheld by the Company or tendered by a participant (either actually or by attestation) to pay an option exercise price or to pay the withholding tax on any Award, or are settled in cash in lieu of shares will again be available for Awards under the 2014 Plan. The Company recognizes stock based compensation expense on a straight line basis for shares vesting ratably under the 2004 Plan and 2014 Plan and uses the graded-vesting method of recognizing stock-based compensation expense for performance share awards based on the probability of the specific performance metrics being achieved over the requisite service period. | ||||||||||||||||
Income Taxes | ||||||||||||||||
The Company records income taxes using the asset and liability method. Deferred income tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective income tax bases, and operating loss and tax credit carryforwards. The Company evaluates the realizability of its net deferred tax assets and assesses the need for a valuation allowance on a quarterly basis. The future benefit to be derived from its deferred tax assets is dependent upon the Company’s ability to generate sufficient future taxable income to realize the assets. The Company records a valuation allowance to reduce its net deferred tax assets to the amount that may be more likely than not to be realized. | ||||||||||||||||
To the extent the Company establishes a valuation allowance on net deferred tax assets generated from operations, an expense will be recorded within the provision for income taxes. In periods subsequent to establishing a valuation allowance on net deferred assets from operations, if the Company were to determine that it would be able to realize its net deferred tax assets in excess of their net recorded amount, an adjustment to the valuation allowance would be recorded as a reduction to income tax expense in the period such determination was made. | ||||||||||||||||
We assess our income tax positions and record tax benefits for all years subject to examination, based upon our evaluation of the facts, circumstances and information available at the reporting date. For those tax positions for which it is more likely than not that a tax benefit will be sustained, we record the amount that has a greater than 50% likelihood of being realized upon settlement with the taxing authority that has full knowledge of all relevant information. Interest and penalties are related to unrecognized tax benefits in income tax expense in the consolidated statement of income and included in accruals and other long-term liabilities in the Company's consolidated balance sheet, where applicable. If we do not believe that it is more likely than not that a tax benefit will be sustained, no tax benefit is recognized. | ||||||||||||||||
Changes in Accumulated Other Comprehensive Loss by Component | ||||||||||||||||
The following is a reconciliation of changes in Accumulated Other Comprehensive Loss for the periods presented: | ||||||||||||||||
Interest Rate Swap | Defined | Cumulative | Total | |||||||||||||
Benefit | Foreign | |||||||||||||||
Pension Plans | Currency | |||||||||||||||
Translation | ||||||||||||||||
Accumulated Other Comprehensive Loss by Component, January 1, 2012 | $ | — | $ | (2,485 | ) | $ | (22,591 | ) | $ | (25,076 | ) | |||||
Net current-period Other Comprehensive Income | — | (2,122 | ) | 3,795 | 1,673 | |||||||||||
Accumulated Other Comprehensive Loss by Component, January 1, 2013 | — | (4,607 | ) | (18,796 | ) | (23,403 | ) | |||||||||
Net current-period Other Comprehensive Income | 135 | 1,474 | 3,398 | 5,007 | ||||||||||||
Accumulated Other Comprehensive Income (Loss) by component, January 1, 2014 | 135 | (3,133 | ) | (15,398 | ) | (18,396 | ) | |||||||||
Net current-period Other Comprehensive Income (Loss) | 8 | (1,685 | ) | (21,342 | ) | (23,019 | ) | |||||||||
Accumulated Other Comprehensive Income (Loss) by component, December 31, 2014 | $ | 143 | $ | (4,818 | ) | $ | (36,740 | ) | $ | (41,415 | ) | |||||
Acquisitions
Acquisitions | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Business Combinations [Abstract] | ||||||||||||
Acquisitions | Acquisitions | |||||||||||
Guardian Couplings | ||||||||||||
On July 1, 2014, the Company acquired all of the issued and outstanding shares of Guardian Ind., Inc. (“Guardian Couplings”) for cash consideration of $17.1 million. This transaction is referred to as the Guardian Acquisition. Guardian Couplings is a manufacturer and supplier of flywheel, motion control and general industrial couplings. The Guardian Acquisition provides the Company with increased product coverage in several core markets, including energy, farm and agriculture, and specialty machinery and is expected to provide synergies with the Company's existing product offerings. | ||||||||||||
The sellers agreed to provide the Company with a limited set of representations and warranties, including those with respect to outstanding and potential liabilities. Claims for a breach of a representation or warranty are secured by a limited escrow. 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. | ||||||||||||
The Company is in the process of finalizing the valuation of certain intangibles, the related tax impact and the valuation of certain tax information to finalize fair value. The Company believes that such preliminary allocations provide a reasonable basis for estimating the fair values of assets acquired and liabilities assumed. The purchase price of $17.1 million, excluding acquisition costs of $0.2 million, is in excess of the fair value of net assets acquired by approximately $2.2 million. Current assets acquired, excluding approximately $2.0 million in cash, totaled approximately $4.0 million, non-current assets totaled approximately $9.2 million and current liabilities totaled approximately $0.3 million. | ||||||||||||
The excess of the purchase price over the fair value of the net assets acquired was recorded as goodwill. This goodwill is deductible for income tax purposes over a period of 15 years. The Company expects to develop synergies, such as lower cost country sourcing and global procurement. | ||||||||||||
The non-current assets acquired included the following intangible assets: | ||||||||||||
Customer relationships, subject to amortization | $ | 7,450 | ||||||||||
Trade names and trademarks, not subject to amortization | 650 | |||||||||||
Total intangible assets | $ | 8,100 | ||||||||||
Customer relationships are subject to amortization which will be amortized on a straight-line basis over their estimated useful lives of 14 years, which represents the anticipated period over which the Company estimates it will benefit from the acquired assets. | ||||||||||||
Svendborg Brakes | ||||||||||||
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 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 Svendborg’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. | ||||||||||||
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 initially 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. | ||||||||||||
During the year ended December 31, 2014, the Company paid approximately €5.9 million ($8.1 million) to settle a portion of the Transfer Pricing Claims and received a corresponding amount from the escrow established for the Transfer Pricing Claims. | ||||||||||||
Measurement period adjustments reflect new information obtained about facts and circumstances that existed as of the acquisition date. The Company updated the acquisition accounting for the measurement period adjustments noted in the table below during the year ended December 31, 2014. | ||||||||||||
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 | (715 | ) | 20,860 | ||||||||
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 | (1,015 | ) | 121,248 | ||||||||
Accounts payable | 4,833 | — | 4,833 | |||||||||
Accrued expenses and other current liabilities | 9,620 | 517 | 10,137 | |||||||||
Taxes payable | 10,254 | — | 10,254 | |||||||||
Deferred tax liability | 11,483 | 431 | 11,914 | |||||||||
Total liabilities assumed | 36,190 | 948 | 37,138 | |||||||||
Net assets acquired | 86,073 | (1,963 | ) | 84,110 | ||||||||
Excess of purchase price over fair value of net assets acquired | $ | 16,023 | $ | 1,963 | $ | 17,986 | ||||||
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. | ||||||||||||
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 benefits from the acquired assets will be realized. | ||||||||||||
The following table sets forth the unaudited pro forma results of operations of the Company for the year to date periods ended December 31, 2014, 2013 and 2012 as if the Company had acquired Svendborg at January 1, 2012, and Guardian at January 1, 2013. The pro forma information contains the actual operating results of the Company, including Svendborg and Guardian, 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) elimination of certain acquisition related expenses (iv) reduction in costs of goods sold related to the amortization of inventory fair value adjustment (v) additional interest expense for borrowings under the Credit Agreement associated with the Svendborg and Guardian Acquisitions. 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. | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Total revenues | $ | 825,723 | $ | 813,477 | $ | 818,956 | ||||||
Net income attributable to Altra Industrial Motion Corp. | $ | 42,632 | $ | 38,695 | $ | 22,373 | ||||||
Basic earnings per share: | ||||||||||||
Net income attributable to Altra Industrial Motion Corp. | $ | 1.6 | $ | 1.45 | $ | 0.84 | ||||||
Diluted earnings per share: | ||||||||||||
Net income attributable to Altra Industrial Motion Corp. | $ | 1.56 | $ | 1.44 | $ | 0.84 | ||||||
Inventories
Inventories | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Inventory Disclosure [Abstract] | ||||||||
Inventories | Inventories | |||||||
Inventories consisted of the following: | ||||||||
December 31, | December 31, | |||||||
2014 | 2013 | |||||||
Raw materials | $ | 36,814 | $ | 56,824 | ||||
Work in process | 13,641 | 18,432 | ||||||
Finished goods | 82,281 | 68,409 | ||||||
Inventories, net | $ | 132,736 | $ | 143,665 | ||||
Approximately 7.0% of total inventories at December 31, 2014, were valued using the LIFO method. The Company recorded as a component of cost of sales, a $0.1 million, and a $0.7 million provision in the years ended December 31, 2014 and 2013, respectively. If the LIFO inventory was accounted for using the FIFO method, the inventory balance at December 31, 2014 and 2013, would be $1.7 million higher and $1.6 million higher, respectively. |
Property_Plant_and_Equipment
Property, Plant and Equipment | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Property, Plant and Equipment [Abstract] | ||||||||
Property, Plant and Equipment | Property, Plant and Equipment | |||||||
Property, plant and equipment consisted of the following: | ||||||||
2014 | 2013 | |||||||
Land | $ | 26,560 | $ | 20,803 | ||||
Buildings and improvements | 44,791 | 53,078 | ||||||
Machinery and equipment | 220,896 | 207,193 | ||||||
292,247 | 281,074 | |||||||
Less-Accumulated depreciation | (135,881 | ) | (123,539 | ) | ||||
$ | 156,366 | $ | 157,535 | |||||
The Company recorded $23.1 million, $21.4 million and $20.5 million of depreciation expense in the years ended December 31, 2014, 2013, and 2012, respectively. |
Goodwill_and_Intangible_Assets
Goodwill and Intangible Assets | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||
Goodwill and Intangible Assets | Goodwill and Intangible Assets | |||||||||||||||||||||||
The changes in the carrying value of goodwill by segment for the years ended December 31, 2014 and 2013 are as follows: | ||||||||||||||||||||||||
Clutches and Brakes | Couplings | Gearing & Power Transmission Components | Total | |||||||||||||||||||||
Gross goodwill balance as of January 1, 2013 | $ | 37,784 | $ | 36,138 | $ | 46,113 | $ | 120,035 | ||||||||||||||||
Accumulated Impairment January 1, 2013 | (3,745 | ) | (14,982 | ) | (13,083 | ) | (31,810 | ) | ||||||||||||||||
Purchase price accounting adjustments | 16,023 | — | — | 16,023 | ||||||||||||||||||||
Impact of changes in foreign currency and other | 418 | (414 | ) | 87 | 91 | |||||||||||||||||||
Net goodwill balance December 31, 2013 | 50,480 | 20,742 | 33,117 | 104,339 | ||||||||||||||||||||
Purchase price accounting adjustments | 1,963 | 2,180 | — | 4,143 | ||||||||||||||||||||
Impact of changes in foreign currency and other | (4,741 | ) | (512 | ) | (1,142 | ) | (6,395 | ) | ||||||||||||||||
Net goodwill balance December 31, 2014 | $ | 47,702 | $ | 22,410 | $ | 31,975 | $ | 102,087 | ||||||||||||||||
Purchase accounting adjustments in the Clutches and Brakes segment and Couplings segment relate to the Svendborg Acquisition and Guardian Acquisition, respectively. | ||||||||||||||||||||||||
The following table provides the gross carrying value and accumulated amortization for each major class of intangible asset: | ||||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||||||||||||||
Cost | Accumulated | Net | Cost | Accumulated | Net | |||||||||||||||||||
Amortization | Amortization | |||||||||||||||||||||||
Intangible Assets | ||||||||||||||||||||||||
Intangible assets not subject to amortization: | ||||||||||||||||||||||||
Tradenames and trademarks | $ | 41,257 | $ | — | $ | 41,257 | $ | 42,605 | $ | — | $ | 42,605 | ||||||||||||
Intangible assets subject to amortization: | ||||||||||||||||||||||||
Customer relationships | 118,523 | 49,849 | 68,674 | 117,848 | 42,582 | 75,266 | ||||||||||||||||||
Product technology and patents | 6,830 | 6,031 | 799 | 6,983 | 6,086 | 897 | ||||||||||||||||||
Total intangible assets | $ | 166,610 | $ | 55,880 | $ | 110,730 | $ | 167,436 | $ | 48,668 | $ | 118,768 | ||||||||||||
The Company recorded $9.0 million, $6.5 million, and $6.8 million of amortization for the years ended December 31, 2014, 2013 and 2012, respectively. | ||||||||||||||||||||||||
Customer relationships, product technology and patents are amortized over their useful lives ranging from 8 to 17 years. The weighted average estimated useful life of intangible assets subject to amortization is approximately 11 years. | ||||||||||||||||||||||||
The estimated amortization expense for intangible assets is approximately $8.2 million in 2015, $8.2 million in each of the next four years and then $28.5 million thereafter. |
Warranty_Costs
Warranty Costs | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Guarantees [Abstract] | ||||||||||||
Warranty Costs | Warranty Costs | |||||||||||
The contractual warranty period of the Company's products generally ranges from three months to two years with certain warranties extending for longer periods. Estimated expenses related to product warranties are accrued at the time products are sold to customers and are recorded in accruals and other current liabilities on the consolidated balance sheet. Estimates are established using historical information as to the nature, frequency and average costs of warranty claims. Changes in the carrying amount of accrued product warranty costs for each of the years ended December 31, are as follows: | ||||||||||||
December 31, | December 31, | December 31, | ||||||||||
2014 | 2013 | 2012 | ||||||||||
Balance at beginning of period | $ | 8,739 | $ | 5,625 | $ | 4,898 | ||||||
Accrued current period warranty costs | 1,537 | 2,573 | 2,386 | |||||||||
Acquired warranty reserves | — | 3,420 | — | |||||||||
Payments and adjustments | (2,484 | ) | (2,879 | ) | (1,659 | ) | ||||||
Balance at end of period | $ | 7,792 | $ | 8,739 | $ | 5,625 | ||||||
Income_Taxes
Income Taxes | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||
Income Taxes | Income Taxes | |||||||||||
Income before income taxes by domestic and foreign locations consists of the following: | ||||||||||||
December 31, | December 31, | December 31, | ||||||||||
2014 | 2013 | 2012 | ||||||||||
Domestic | $ | 33,065 | $ | 37,640 | $ | 18,083 | ||||||
Foreign | 30,053 | 21,696 | 16,276 | |||||||||
Total | $ | 63,118 | $ | 59,336 | $ | 34,359 | ||||||
The components of the provision for income taxes consist of the following: | ||||||||||||
December 31, | December 31, | December 31, | ||||||||||
2014 | 2013 | 2012 | ||||||||||
Current: | ||||||||||||
Federal | $ | 12,545 | $ | 8,917 | $ | 8,370 | ||||||
State | 299 | 698 | (3,597 | ) | ||||||||
Non-US | 7,380 | 6,072 | 6,006 | |||||||||
20,224 | 15,687 | 10,779 | ||||||||||
Deferred: | ||||||||||||
Federal | 2,673 | 3,533 | (915 | ) | ||||||||
State | 198 | 378 | 1,756 | |||||||||
Non-US | (159 | ) | (447 | ) | (1,466 | ) | ||||||
2,712 | 3,464 | (625 | ) | |||||||||
Provision for income taxes | $ | 22,936 | $ | 19,151 | $ | 10,154 | ||||||
A reconciliation from tax at the U.S. federal statutory rate to the Company’s provision for income taxes is as follows: | ||||||||||||
December 31, | December 31, | December 31, | ||||||||||
2014 | 2013 | 2012 | ||||||||||
Tax at US federal income tax rate | $ | 22,092 | $ | 20,767 | $ | 12,026 | ||||||
State taxes, net of federal income tax effect | 495 | 905 | 67 | |||||||||
Change in tax rate | 11 | (354 | ) | (267 | ) | |||||||
Foreign reorganization | 3,786 | — | — | |||||||||
Foreign taxes | (1,978 | ) | (224 | ) | 781 | |||||||
Adjustments to accrued income tax liabilities and uncertain tax positions | (287 | ) | (52 | ) | (1,289 | ) | ||||||
Valuation allowance | 612 | 120 | 506 | |||||||||
Intercompany interest | (910 | ) | (986 | ) | (1,676 | ) | ||||||
Tax credits and incentives | (666 | ) | (816 | ) | (291 | ) | ||||||
Domestic manufacturing deduction | (1,201 | ) | (839 | ) | (566 | ) | ||||||
Other | 982 | 630 | 863 | |||||||||
Provision for income taxes | $ | 22,936 | $ | 19,151 | $ | 10,154 | ||||||
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 states. The Company and its subsidiaries also file consolidated and separate income tax returns in various non-U.S. 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 2011. Additionally, the Company has indemnification agreements with the sellers of the Guardian, Svendborg, Lamiflex and Bauer entities that provide for reimbursement to the Company for payments made in satisfaction of income tax liabilities relating to pre-acquisition periods. | ||||||||||||
A reconciliation of the gross amount of unrecognized tax benefits excluding accrued interest and penalties is as follows: | ||||||||||||
December 31, | December 31, | December 31, | ||||||||||
2014 | 2013 | 2012 | ||||||||||
Balance at beginning of period | $ | 627 | $ | 747 | $ | 3,523 | ||||||
Increases related to prior year tax positions | — | — | — | |||||||||
Decreases related to prior year tax positions | — | (33 | ) | — | ||||||||
Increases related to current year tax positions | — | — | — | |||||||||
Settlements | (176 | ) | — | (2,689 | ) | |||||||
Lapse of statute of limitations | (17 | ) | (87 | ) | (87 | ) | ||||||
Balance at end of period | $ | 434 | $ | 627 | $ | 747 | ||||||
In 2012, the Company recognized a $2.5 million tax benefit for the reduction of the Company’s reserve for uncertain tax positions due to a settlement with the State of New York for which the Company was fully indemnified. | ||||||||||||
The Company recognizes interest and penalties related to unrecognized tax benefits in income tax expense in the Consolidated Statement of Income. The Company accrued interest and penalties of $0.1 million (off-set by a $0.3 million benefit of interest and penalties primarily related to the lapse of the applicable statute of limitations), $0.1 million, and $0.2 million during the years ended December 31, 2014, 2013 and 2012, respectively. The total gross amount of interest and penalties related to uncertain tax positions at December 31, 2014, 2013, and 2012 was $0.2 million, $0.4 million, $0.4 million, respectively. Although it is reasonably possible that a change in the balance of unrecognized tax benefits might occur within the next twelve months, at this time it is not possible to estimate the range of change due to the uncertainty of the potential outcomes. | ||||||||||||
Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. | ||||||||||||
Significant components of the deferred tax assets and liabilities as of December 31, 2014 and 2013 are as follows: | ||||||||||||
2014 | 2013 | |||||||||||
Deferred tax assets: | ||||||||||||
Post-retirement obligations | $ | 1,363 | $ | 1,565 | ||||||||
Tax credits | 2,194 | 2,165 | ||||||||||
Expenses not currently deductible | 11,457 | 11,788 | ||||||||||
Net operating loss carryover | 5,901 | 6,376 | ||||||||||
Other | 519 | 546 | ||||||||||
Total deferred tax assets | 21,434 | 22,440 | ||||||||||
Valuation allowance for deferred tax assets | (5,974 | ) | (5,577 | ) | ||||||||
Net deferred tax assets | 15,460 | 16,863 | ||||||||||
Deferred tax liabilities: | ||||||||||||
Property, plant and equipment | 19,002 | 20,065 | ||||||||||
Intangible assets | 22,735 | 25,090 | ||||||||||
Basis difference - convertible debt | 11,875 | 11,064 | ||||||||||
Goodwill | 4,967 | 3,813 | ||||||||||
Total deferred liabilities | 58,579 | 60,032 | ||||||||||
Net deferred tax liabilities | $ | 43,119 | $ | 43,169 | ||||||||
On December 31, 2014 the Company had state net operating loss (NOL) carry forwards of $24.3 million, which expire between 2019 and 2032, and non U.S. NOL and capital loss carryforwards of $21.8 million, of which substantially all have an unlimited carryforward period. The NOL carryforwards available are subject to limitations on their annual usage. The Company also has federal and state tax credits of $2.4 million available to reduce future income taxes that expire between 2015 and 2029. | ||||||||||||
Valuation allowances are established for deferred tax assets when management believes it is more likely than not that the associated benefit may not be realized. The Company periodically reviews the adequacy of its valuation allowances and recognizes tax benefits only as reassessments indicate that it is more likely than not the benefits will be realized. Valuation allowances have been established due to the uncertainty of realizing the benefits of certain net operating losses, capital loss carryforwards, tax credits, and other tax attributes. The valuation allowances are primarily related to certain non-U.S. NOL carryforwards, capital loss carryforwards, and U.S. federal foreign tax credits. | ||||||||||||
A provision has not been made for U.S. or additional non-U.S. taxes on $70.8 million of undistributed earnings of international subsidiaries that could be subject to taxation if remitted to the U.S. because the Company plans to keep these amounts permanently reinvested outside the U.S. except for instances where the Company has already been subject to tax in the U.S. It is not practicable to determine the amount of deferred income taxes not provided on these earnings. |
Pension_and_Other_Employee_Ben
Pension and Other Employee Benefits | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Compensation and Retirement Disclosure [Abstract] | ||||||||||||
Pension and Other Employee Benefits | 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 December 31, 2014 and 2013: | ||||||||||||
Pension Benefits | ||||||||||||
Year Ended | Year Ended | |||||||||||
December 31, | December 31, | |||||||||||
2014 | 2013 | |||||||||||
Change in benefit obligation: | ||||||||||||
Obligation at beginning of period | $ | 32,215 | $ | 34,629 | ||||||||
Partial settlement gain | (582 | ) | — | |||||||||
Service cost | 243 | 248 | ||||||||||
Interest cost | 1,353 | 1,250 | ||||||||||
Partial settlement payments | (2,080 | ) | — | |||||||||
Actuarial (gains) losses | 5,978 | (2,969 | ) | |||||||||
Foreign exchange effect | (909 | ) | 343 | |||||||||
Benefits paid | (1,357 | ) | (1,286 | ) | ||||||||
Obligation at end of period | $ | 34,861 | $ | 32,215 | ||||||||
Change in plan assets: | ||||||||||||
Fair value of plan assets, beginning of period | $ | 24,190 | $ | 20,100 | ||||||||
Partial settlement payments | (2,080 | ) | — | |||||||||
Actual return on plan assets | 3,668 | 182 | ||||||||||
Employer contributions | 447 | 5,194 | ||||||||||
Benefits paid | (1,357 | ) | (1,286 | ) | ||||||||
Fair value of plan assets, end of period | $ | 24,868 | $ | 24,190 | ||||||||
Funded status | $ | (9,993 | ) | $ | (8,025 | ) | ||||||
Amounts Recognized in the balance sheet consist of: | ||||||||||||
Non-current liabilities | $ | (9,993 | ) | $ | (8,025 | ) | ||||||
Total | $ | (9,993 | ) | $ | (8,025 | ) | ||||||
For all pension plans presented above, the accumulated and projected benefit obligations exceed the fair value of plan assets. The accumulated benefit obligation at December 31, 2014 and 2013 was $34.9 million and $32.2 million, respectively. Non-U.S. pension liabilities recognized in the amounts presented above are $8.3 million and $7.7 million at December 31, 2014 and 2013, respectively. | ||||||||||||
Included in accumulated other comprehensive loss at December 31, 2014 and 2013, is $4.8 million (net of $1.7 million in taxes) and $3.1 million (net of $1.1 million in taxes), respectively, of unrecognized actuarial losses that have not yet been recognized in net periodic pension cost. | ||||||||||||
The discount rate used in the computation of the respective benefit obligations at December 31, 2014 and 2013, presented above are as follows: | ||||||||||||
2014 | 2013 | |||||||||||
Pension benefits | 3.7 | % | 4.6 | % | ||||||||
The following table represents the components of the net periodic benefit cost associated with the respective plans: | ||||||||||||
Pension Benefits | ||||||||||||
Year Ended | Year Ended | Year Ended | ||||||||||
December 31, | December 31, | December 31, | ||||||||||
2014 | 2013 | 2012 | ||||||||||
Service cost | $ | 243 | $ | 248 | $ | 179 | ||||||
Interest cost | 1,353 | 1,250 | 1,381 | |||||||||
Expected return on plan assets | (1,084 | ) | (1,080 | ) | (1,083 | ) | ||||||
Non-cash impact of partial pension settlement | 475 | — | — | |||||||||
Amortization of actuarial losses | 159 | 175 | 105 | |||||||||
Net periodic benefit cost | $ | 1,146 | $ | 593 | $ | 582 | ||||||
The key economic assumptions used in the computation of the respective net periodic benefit cost for the periods presented above are as follows: | ||||||||||||
Pension Benefits | ||||||||||||
Year Ended | Year Ended | Year Ended | ||||||||||
December 31, | December 31, | December 31, | ||||||||||
2014 | 2013 | 2012 | ||||||||||
Discount rate | 4.6 | % | 3.75 | % | 4.75 | % | ||||||
Expected return on plan assets | 4.6 | % | 5.25 | % | 6.25 | % | ||||||
The expected long-term rate of return represents the average rate of earnings expected on the funds invested or to be invested to provide for the benefits included in the benefit obligation. The assumption reflects expectations regarding future rates of return for the investment portfolio, with consideration given to the distribution of investments by asset class and historical rates of return for each individual asset class. | ||||||||||||
Fair Value of Plan Assets | ||||||||||||
The fair value of the Company’s pension plan assets at December 31, 2014 and 2013 by asset category is as follows: | ||||||||||||
2014 | 2013 | |||||||||||
Asset Category | ||||||||||||
Fixed income (Level 1) | ||||||||||||
U.S. government | 3,554 | 2,787 | ||||||||||
Corporate bonds | ||||||||||||
Investment grade | 17,682 | 17,091 | ||||||||||
High yield | 3,090 | 3,634 | ||||||||||
Total fixed income | 24,326 | 23,512 | ||||||||||
Other (Level 2) | 286 | 338 | ||||||||||
Cash and cash equivalents (Level 1) | 256 | 340 | ||||||||||
Total assets at fair value | $ | 24,868 | $ | 24,190 | ||||||||
The asset allocations for the Company’s funded retirement plan at December 31, 2014 and 2013, respectively, and the target allocation for 2014, by asset category, are as follows: | ||||||||||||
Allocation Percentage of | ||||||||||||
Plan Assets at Year-End | ||||||||||||
2014 | 2014 | 2013 | ||||||||||
Actual | Target | Actual | ||||||||||
Asset Category | ||||||||||||
Investment Grade Bonds | 86 | % | 70% - 100% | 84 | % | |||||||
High Yield Bonds | 13 | % | 0% - 25% | 15 | % | |||||||
Cash | 1 | % | 0% - 5% | 1 | % | |||||||
The investment strategy is to achieve a rate of return on the plan’s assets that meets the performance of liabilities as calculated using a bank’s liability index with appropriate adjustments for benefit payments, service cost and actuarial assumption changes. A determinant of the plan’s return is the asset allocation policy. The plan’s asset mix will be reviewed by the Company periodically, but at least quarterly, to rebalance within the target guidelines. The Company will also periodically review investment managers to determine if the respective manager has performed satisfactorily when compared to the defined objectives, similarly invested portfolios, and specific market indices. | ||||||||||||
Expected cash flows | ||||||||||||
The following table provides the amounts of expected benefit payments, which are made from the plans’ assets and includes the participants’ share of the costs, which is funded by participant contributions. The amounts in the table are actuarially determined and reflect the Company’s best estimate given its current knowledge; actual amounts could be materially different. | ||||||||||||
Pension | ||||||||||||
Benefits | ||||||||||||
Expected benefit payments (from plan assets) | ||||||||||||
2015 | 1,287 | |||||||||||
2016 | 1,366 | |||||||||||
2017 | 1,409 | |||||||||||
2018 | 1,488 | |||||||||||
2019 | 1,564 | |||||||||||
Thereafter | 7,858 | |||||||||||
The Company contributed $0.2 million to its U.S. pension plan in 2014. The Company has no minimum cash funding requirements associated with its pension plans for years 2015 through 2019. | ||||||||||||
Defined Contribution Plans | ||||||||||||
Under the terms of the Company’s defined contribution plans, eligible employees may contribute up to 75% percent of their compensation to the plan on a pre-tax basis, subject to annual IRS limitations. The Company makes matching contributions equal to half of the first six percent of salary contributed by each employee and made a unilateral contribution (including for non-contributing employees). The Company’s expense associated with the defined contribution plans was $4.0 million, $3.7 million and $3.5 million during the years ended December 31, 2014 , 2013 and 2012, respectively. |
LongTerm_Debt
Long-Term Debt | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Debt Disclosure [Abstract] | ||||||||||
Long-Term Debt | Long-Term Debt | |||||||||
December 31, | December 31, | |||||||||
2014 | 2013 | |||||||||
Debt: | ||||||||||
Revolving Credit Facility | $ | 40,000 | $ | 41,198 | ||||||
Convertible Notes | 85,000 | 85,000 | ||||||||
Term Loan Facility | 133,697 | 163,245 | ||||||||
Bauer Mortgage | 3,647 | — | ||||||||
Equipment Loan | 5,430 | 4,155 | ||||||||
Mortgages | 258 | 659 | ||||||||
Capital leases | 476 | 178 | ||||||||
Total debt | 268,508 | 294,435 | ||||||||
Less: debt discount, net of accretion | (12,756 | ) | (16,163 | ) | ||||||
Total debt, net of unaccreted discount | 255,752 | 278,272 | ||||||||
Less current portion of long-term debt | (15,176 | ) | (16,924 | ) | ||||||
Total long-term debt | $ | 240,576 | $ | 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. 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 reset to amortize 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 December 31, 2014 and 2013, we had $40.0 million and $41.2 million outstanding on our Revolving Credit Facility, respectively. As of December 31, 2014 and 2013, we had $11.0 and $9.8 million in letters of credit outstanding, respectively. We had $149.0 million available under the Revolving Credit Facility at December 31, 2014. | ||||||||||
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. | ||||||||||
Pursuant to the Former Credit Agreement, on November 20, 2012, 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 December 31, 2014 is $26.71 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 5 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. 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 principal 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. | ||||||||||
Because the last reported sale price of the Company's common stock did not exceed 130% of the current conversion price, which was $26.71, for at least 20 of the last 30 consecutive trading days in the fiscal quarter ended December 31, 2014, the Convertible Notes are not convertible at the election of the holders of the Convertible Notes at any time during the fiscal quarter ending March 31, 2015. The future convertibility will be monitored at each quarterly reporting date and will be analyzed dependent upon market prices of the Company's common stock during the prescribed measurement periods. Should the Convertible Notes become converted in future periods, the Company has the ability and intent to fund any potential payments of the principal amount of the debt with additional borrowings under the Revolving Credit Agreement. | ||||||||||
The carrying amount of the principal amount of the liability component, the unamortized discount, and the net carrying amount are as follows as of December 31, 2014: | ||||||||||
December 31, | ||||||||||
2014 | ||||||||||
Principal amount of debt | $ | 85,000 | ||||||||
Unamortized discount | 12,756 | |||||||||
Carrying value of debt | $ | 72,244 | ||||||||
Interest expense associated with the Convertible Notes consisted of the following : | ||||||||||
December 31, | December 31, | December 31, | ||||||||
2014 | 2013 | 2012 | ||||||||
Contractual coupon rate of interest | $ | 2,338 | $ | 2,338 | $ | 2,338 | ||||
Accretion of Convertible Notes discount and amortization of deferred financing costs | 3,760 | 3,494 | 3,239 | |||||||
Interest expense for the Convertible Notes | $ | 6,098 | $ | 5,832 | $ | 5,577 | ||||
The effective interest yield of the Convertible Notes due in 2031 is 8.5% at December 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 loan is secured by certain letters of credit issued by the Company’s U.S. bank in favor of the lending bank in China. As of December 31, 2013, the total available to borrow was 38.5 million RMB ($6.3 million). The note is due in installments from 2014 through 2016, with interest varying between 5.40% and 8.00%. The Company has a 33.3 million RMB ($5.4 million) line of credit outstanding at December 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 December 31, 2014 and 2013. | ||||||||||
Mortgage | ||||||||||
The Company has a mortgage with a bank secured by its facility in Heidelberg, Germany with an interest rate of 5.75% and is payable in monthly installments through September 2015. As of December 31, 2014 and 2013, the mortgage had a remaining principal balance of €0.2 million or $0.3 million, and €0.5 million or $0.7 million, respectively. | ||||||||||
Bauer Mortgage | ||||||||||
The Company entered an agreement with a bank for €6.0 million or $7.9 million for the construction of a new facility in Esslingen, Germany with an interest rate of 2.5% per year which is payable in monthly interest payments . The Company received €3.0 million or $3.6 million during 2014. The Company expects to receive the remainder of proceeds of this loan during the quarter ended March 31, 2015. The principal portion of the mortgage will be due in a lump-sum payment in May 2019. | ||||||||||
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 $0.5 million and $0.2 million at December 31, 2014 and 2013, respectively. 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 December 31, 2014 or 2013 under any of the overdraft agreements. |
Stockholders_Equity
Stockholders' Equity | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Equity [Abstract] | |||||||
Stockholders' Equity | Stockholders’ Equity | ||||||
Common Stock (amounts not in thousands) | |||||||
As of December 31, 2014, there were 90,000,000 shares of common stock authorized and 26,353,755 outstanding. | |||||||
Preferred Stock | |||||||
On December 20, 2006, the Company amended and restated its certificate of incorporation authorizing 10,000,000 shares of undesignated Preferred Stock (“Preferred Stock”). The Preferred Stock may be issued from time to time in one or more classes or series, the shares of each class or series to have such designations and powers, preferences, and rights, and qualifications, limitations and restrictions as determined by the Company’s Board of Directors. There was no Preferred Stock issued or outstanding at December 31, 2014 or 2013. | |||||||
Restricted Common Stock | |||||||
The Company's 2004 Equity Incentive Plan (the “2004 Plan”) permitted the grant of various forms of stock based compensation to our officers and senior level employees. The 2004 Plan expired in 2014 and, upon expiration, there were 750,576 shares subject to outstanding awards under the 2004 Plan. The 2014 Omnibus Incentive Plan (the “2014 Plan”) was approved by the Company's shareholders at its 2014 annual meeting. The 2014 Plan provides for various forms of stock based compensation to our directors, executive personnel and other key employees and consultants. Under the 2014 Plan, the total number of shares of common stock available for delivery pursuant to the grant of awards (“Awards”) was originally 750,000. Shares of our common stock subject to Awards awarded under the 2004 Plan and outstanding as of the effective date of the 2014 Plan (except for substitute awards) that terminate without being exercised, expire, are forfeited or canceled, are exchanged for Awards that did not involve shares of common stock, are not issued on the stock settlement of a stock appreciation right, are withheld by the Company or tendered by a participant (either actually or by attestation) to pay an option exercise price or to pay the withholding tax on any Award, or are settled in cash in lieu of shares will again be available for Awards under the 2014 Plan. | |||||||
The restricted shares issued pursuant to the 2014 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 events. Common stock awarded under the 2014 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 2014 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 2014 Plan are determined by the Personnel and Compensation Committee of the Board of Directors. Compensation expense recorded (in selling, general and administrative expense) during the years ended December 31, 2014, 2013 and 2012 was $3.4 million ($2.9 million, net of tax), $3.2 million ($2.9 million, net of tax), and $2.7 million ($1.8 million, net of tax), 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 grants to date: | |||||||
Amounts not in thousands | Shares | Weighted- | |||||
Average Grant | |||||||
Date Fair Value | |||||||
Restricted shares unvested January 1, 2014 | 149,635 | $ | 23.02 | ||||
Shares granted | 136,340 | $ | 33.52 | ||||
Shares for which restrictions lapsed | (126,797 | ) | $ | 29.58 | |||
Restricted shares unvested December 31, 2014 | 159,178 | $ | 28.53 | ||||
Total remaining unrecognized compensation cost is approximately $3.7 million as of December 31, 2014, and will be recognized over a weighted average remaining period of two years. Based on the stock price at December 31, 2014, of $28.39 per share, the intrinsic value of these awards as of December 31, 2014, was $4.5 million. The fair market value of the shares in which the restrictions have lapsed was $3.8 million, $2.4 million, and $3.2 million, during 2014, 2013, and 2012, respectively. Restricted shares granted are valued based on the fair market value of the stock on the date of grant. | |||||||
Share Repurchase Program | |||||||
In May 2014, our board of directors approved a new share repurchase program authorizing the buyback of up to $50.0 million of the Company's common stock. The Company expects to purchase shares on the open market, through block trades, in privately negotiated transactions, in compliance with SEC Rule 10b-18 (including through Rule 10b5-1 plans), or in any other appropriate manner. The timing of the shares repurchased will be at the discretion of management and will depend on a number of factors, including price, market conditions and regulatory requirements. Shares acquired through the repurchase program will be retired. The Company retains the right to limit, terminate or extend the share repurchase program at any time without prior notice. | |||||||
For the year ended December 31, 2014, the Company repurchased 545,154 shares of common stock at an average purchase price of $32.32 per share. As of December 31, 2014, up to $32.3 million was available for repurchase under the repurchase program, which expires on December 31, 2016. The Company expects to fund any further repurchases of its common stock through a combination of cash on hand, cash generated by operations. | |||||||
Dividends | |||||||
The Company declared and paid dividends of $0.46 per share of common stock for the year ended December 31, 2014. The Company declared dividends of $0.38 per share for the year ended December 31, 2013, of which $0.10 or $2.7 million was paid on January 3, 2014 and accrued for in the balance sheet at December 31, 2013. | |||||||
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. |
Concentrations
Concentrations | 12 Months Ended |
Dec. 31, 2014 | |
Risks and Uncertainties [Abstract] | |
Concentrations | Concentrations |
Financial instruments, which are potentially subject to counterparty 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 30 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 the years ended December 31, 2014, 2013 and 2012. | |
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 investments are held by well-established financial institutions and invested in AAA rated mutual funds or United States Government Securities. The Company is exposed to swap counterparty credit risk with financial institutions. The Company’s counterparty is a well-established financial institution. | |
Approximately 23% of the Company’s labor force (15% and 56% in the United States and Europe, respectively) is represented by collective bargaining agreements. The Company is a party to four U.S. collective bargaining agreements. The agreements will expire July 2015, October 2016, June 2017, and February 2018, respectively. The Company intends to renegotiate these contracts as they become due, though there is no assurance that this effort will be successful. |
Restructuring_Asset_Impairment
Restructuring, Asset Impairment, and Transition Expenses | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Restructuring and Related Activities [Abstract] | ||||||||||||
Restructuring, Asset Impairment, and Transition Expenses | Restructuring, Asset Impairment, and Transition Expenses | |||||||||||
From time to time, the Company will initiate various restructuring programs and incur severance and other restructuring costs. | ||||||||||||
The following table details restructuring charges incurred by segment for the periods presented: | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Clutches and Brakes | $ | 916 | $ | 373 | $ | 393 | ||||||
Couplings | 142 | 234 | 74 | |||||||||
Gearing and Power Transmission Components | 603 | 504 | 2,729 | |||||||||
Corporate | 106 | — | — | |||||||||
Total | $ | 1,767 | $ | 1,111 | $ | 3,196 | ||||||
These amounts related to staff reductions and are classified in the Consolidated Statements of Income as restructuring expense in the respective periods. | ||||||||||||
In the quarter ended December 31, 2012, the Company adopted the 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 year during 2014 . | ||||||||||||
In the quarter ended September 30, 2014, the Company adopted a restructuring plan (“2014 Altra Plan”) as a result of weak demand in Europe and to make certain adjustments to its existing sales force to reflect the Company's expanding global footprint. The actions taken pursuant to the 2014 Altra Plan included reducing headcount and limiting discretionary spending to improve profitability. | ||||||||||||
The following is a reconciliation of the accrued restructuring costs between January 1, 2012 and December 31, 2014: | ||||||||||||
All Plans | ||||||||||||
Balance at January 1, 2012 | $ | 90 | ||||||||||
Restructuring expense incurred | 3,196 | |||||||||||
Cash payments | (471 | ) | ||||||||||
Balance at January 1, 2013 | 2,815 | |||||||||||
Restructuring expense incurred | 1,111 | |||||||||||
Cash payments | (3,497 | ) | ||||||||||
Balance at December 31, 2013 | 429 | |||||||||||
Restructuring expense incurred | 1,767 | |||||||||||
Cash payments | (1,807 | ) | ||||||||||
Balance at December 31, 2014 | $ | 389 | ||||||||||
The total accrued restructuring reserve as of December 31, 2014 relates to severance costs to be paid to employees in 2015 and is recorded in accruals and other current liabilities on the consolidated balance sheet. The Company does not expect to incur any additional restructuring expenses in 2015 under the 2014 Altra Plan. |
Derivative_Financial_Instrumen
Derivative Financial Instruments | 12 Months Ended | |||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||
Derivative Financial Instruments | 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 $82.5 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 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 year ended December 31, 2014, nor was any amount excluded from ineffectiveness testing for these periods. | ||||||||||||||||||
The fair value of the swap recognized in other non-current assets and in other comprehensive income (loss) is as follows (in thousands): | ||||||||||||||||||
Fair Value | ||||||||||||||||||
Effective Date | Notional | Fixed | Maturity | December 31, | December 31, | |||||||||||||
Amount | Rate | 2014 | 2013 | |||||||||||||||
April 30, 2013 | $ | 82,500 | 0.626 | % | November 30, 2016 | $ | 143 | $ | 135 | |||||||||
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Commitments and Contingencies Disclosure [Abstract] | ||||||||
Commitments and Contingencies | Commitments and Contingencies | |||||||
Minimum Lease Obligations | ||||||||
The Company leases certain offices, warehouses, manufacturing facilities, automobiles and equipment with various terms that range from a month to month basis to 10 years terms and which, generally, include renewal provisions. Future minimum rent obligations under non-cancelable operating and capital leases are as follows: | ||||||||
Year ending December 31: | Operating Leases | Capital Leases | ||||||
2015 | $ | 6,891 | $ | 115 | ||||
2016 | 5,816 | 115 | ||||||
2017 | 4,546 | 115 | ||||||
2018 | 2,538 | 115 | ||||||
2019 | 1,873 | 38 | ||||||
Thereafter | 6,951 | — | ||||||
Total lease obligations | $ | 28,615 | $ | 498 | ||||
Less amounts representing interest | (22 | ) | ||||||
Present value of minimum capital lease obligations | $ | 476 | ||||||
Net rent expense under operating leases for the years ended December 31, 2014, 2013, and 2012 was approximately $8.8 million, $8.8 million, $7.8 million, respectively. | ||||||||
The Company also has minimum purchase contracts for inventory of €3.6 million ($4.4 million) for the year ended December 31, 2015. | ||||||||
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. 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. 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. | ||||||||
Our estimates regarding potential losses and materiality are based on our judgment and assessment of the claims utilizing currently available information. Although we will continue to reassess our reserves and estimates based on future developments, our objective assessment of the legal merits of such claims may not always be predictive of the outcome and actual results may vary from our current estimates. We will continue to consider the applicable guidance in ASC 450-20, based on the facts known at the time of our future filings, as it relates to legal contingencies, and will adjust our disclosures as may be required under the guidance. | ||||||||
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. 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 consolidated balance sheets for potential litigation as of December 30, 2014 or December 31, 2013. | ||||||||
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. | ||||||||
Environmental | ||||||||
There is contamination at some of the Company’s current facilities, primarily related to historical operations at those sites, for which the Company could be liable for the investigation and remediation under certain environmental laws. The potential for contamination also exists at other of the Company current or former sites, based on historical uses of those sites. The Company currently is not undertaking any remediation or investigations and the costs or liability in connection with potential contamination conditions at these facilities cannot be predicted at this time because the potential existence of contamination has not been investigated or not enough is known about the environmental conditions or likely remedial requirements. Currently, other parties with contractual liability are addressing or have plans or obligations to address those contamination conditions that may pose a material risk to human health, safety or the environment. In addition, while the Company attempts to evaluate the risk of liability associated with these facilities at the time the Company acquired them, there may be environmental conditions currently unknown to the Company relating to prior, existing or future sites or operations or those of predecessor companies whose liabilities the Company may have assumed or acquired which could have a material adverse effect on the Company’s business. | ||||||||
The Company is being indemnified, or expects to be indemnified by third parties subject to certain caps or limitations on the indemnification, for certain environmental costs and liabilities associated with certain owned or operated sites. Accordingly, based on the indemnification and the experience with similar sites of the environmental consultants who the Company has hired, the Company does not expect such costs and liabilities to have a material adverse effect on its business, operations or earnings. The Company cannot assure you, however, that those third parties will in fact satisfy their indemnification obligations. If those third parties become unable to, or otherwise do not, comply with their respective indemnity obligations, or if certain contamination or other liability for which the Company is obligated is not subject to these indemnities, the Company could become subject to significant liabilities. | ||||||||
From time to time, the Company is notified that it is a potentially responsible party and may have liability in connection with off-site disposal facilities. To date, the Company has generally resolved matters involving off-site disposal facilities for a nominal sum but there can be no assurance that the Company will be able to resolve pending or future matters in a similar fashion. |
Segment_and_Geographic_Informa
Segment and Geographic Information | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||||||
Segment and Geographic Information | Segment and Geographic Information | |||||||||||||||||||
Effective during the quarter ended December 31, 2014, the Company has reclassified the presentation of the information regarding its reportable segments to reflect a change from one reportable segment in prior periods to three reportable segments in 2014. Effective beginning with the quarter ended December 31, 2014, management has concluded it is more appropriate to report in three segments. The segment information for the 2013 and 2012 has been reclassified to conform to the current year presentation. | ||||||||||||||||||||
The Company currently operates through three business segments that are aligned with key product types: | ||||||||||||||||||||
• | Clutches and Brakes. Clutches are devices which use mechanical, magnetic, hydraulic, pneumatic, or friction type connections to facilitate engaging or disengaging two rotating members. Brakes are combinations of interacting parts that work to slow or stop machinery. | |||||||||||||||||||
• | Couplings. Couplings are the interface between two shafts, which enable power to be transmitted from one shaft to the other. | |||||||||||||||||||
• | Gearing and Power Transmission Components. Gears reduce the output speed and increase the torque of an electric motor or engine to the level required to drive a particular piece of equipment. Power transmission components are used in a number of industries to generate, transfer or control motion from a power source to an application requiring rotary or linear motion. | |||||||||||||||||||
Segment financial information and a reconciliation of segment results to consolidated results follows: | ||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||
Net Sales: | ||||||||||||||||||||
Clutches & Brakes | $ | 426,293 | $ | 336,616 | $ | 334,901 | ||||||||||||||
Couplings | 134,464 | 125,169 | 128,705 | |||||||||||||||||
Gearings & Power Transmission Components | 264,514 | 265,154 | 274,004 | |||||||||||||||||
Intra-segment eliminations | (5,454 | ) | (4,721 | ) | (5,620 | ) | ||||||||||||||
Net sales | $ | 819,817 | $ | 722,218 | $ | 731,990 | ||||||||||||||
Income from operations: | ||||||||||||||||||||
Segment earnings: | ||||||||||||||||||||
Clutches & Brakes | 53,386 | 48,150 | 50,570 | |||||||||||||||||
Couplings | 16,091 | 15,021 | 18,146 | |||||||||||||||||
Gearings & Power Transmission Components | 24,534 | 23,881 | 22,421 | |||||||||||||||||
Restructuring | (1,767 | ) | (1,111 | ) | (3,196 | ) | ||||||||||||||
Corporate expenses | (17,135 | ) | (14,362 | ) | (11,090 | ) | ||||||||||||||
Income from operations | 75,109 | 71,579 | 76,851 | |||||||||||||||||
Other non-operating (income) expense: | ||||||||||||||||||||
Net interest expense | 11,994 | 10,586 | 40,790 | |||||||||||||||||
Other non-operating (income) expense, net | (3 | ) | 1,657 | 1,702 | ||||||||||||||||
11,991 | 12,243 | 42,492 | ||||||||||||||||||
Income before income taxes | 63,118 | 59,336 | 34,359 | |||||||||||||||||
Provision for income taxes | 22,936 | 19,151 | 10,154 | |||||||||||||||||
Net income | $ | 40,182 | $ | 40,185 | $ | 24,205 | ||||||||||||||
(1) Certain expenses are maintained at the corporate level and not allocated to the segments. These include various administrative expenses related to the corporate headquarters, depreciation on capitalized software costs, non-capitalizable software implementation costs, acquisition related expenses and non-cash partial pension settlements. include executive | ||||||||||||||||||||
and functional compensation costs, non-service pension costs, non-operating insurance expenses, and various administrative | ||||||||||||||||||||
expenses relating to the corporate headquarters and acquisition costs. | ||||||||||||||||||||
Selected information by segment (continued) | ||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||
Depreciation and amortization: | ||||||||||||||||||||
Clutches & Brakes | $ | 12,936 | $ | 9,203 | $ | 8,847 | ||||||||||||||
Couplings | 5,655 | 5,402 | 5,016 | |||||||||||||||||
Gearing & Power Transmission Components | 11,061 | 11,126 | 11,891 | |||||||||||||||||
Corporate | 2,485 | 2,193 | 1,622 | |||||||||||||||||
Total depreciation and amortization | $ | 32,137 | $ | 27,924 | $ | 27,376 | ||||||||||||||
Purchase of Property, plant and equipment: | ||||||||||||||||||||
Clutches & Brakes | $ | 8,865 | $ | 6,382 | $ | 8,386 | ||||||||||||||
Couplings | 3,384 | 3,270 | 10,031 | |||||||||||||||||
Gearing & Power Transmission Components | 13,413 | 15,001 | 6,767 | |||||||||||||||||
Corporate | 2,388 | 3,170 | 6,162 | |||||||||||||||||
Total purchases of Property, plant and equipment: | $ | 28,050 | $ | 27,823 | $ | 31,346 | ||||||||||||||
Total assets: | ||||||||||||||||||||
Clutches & Brakes | $ | 334,371 | $ | 364,826 | $ | 244,255 | ||||||||||||||
Couplings | 117,805 | 109,279 | 112,910 | |||||||||||||||||
Gearing & Power Transmission Components | 190,771 | 198,715 | 202,543 | |||||||||||||||||
Corporate (2) | 41,616 | 62,856 | 103,331 | |||||||||||||||||
Total assets | $ | 684,563 | $ | 735,676 | $ | 663,039 | ||||||||||||||
(2) Corporate assets are primarily cash and cash equivalents, tax related asset accounts, certain capitalized software costs, property, plant and equipment and deferred financing costs. | ||||||||||||||||||||
Geographic Information | Net Sales | Property, Plant and Equipment | ||||||||||||||||||
Year Ended | ||||||||||||||||||||
December 31, | December 31, | December 31, | December 31, | December 31, | ||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | ||||||||||||||||
North America | $ | 488,523 | $ | 454,115 | $ | 469,554 | $ | 90,279 | $ | 87,573 | ||||||||||
Europe | 255,049 | 216,636 | 216,485 | 51,708 | 54,533 | |||||||||||||||
Asia and the rest of the world | 76,245 | 51,467 | 45,951 | 14,379 | 15,429 | |||||||||||||||
Total | $ | 819,817 | $ | 722,218 | $ | 731,990 | $ | 156,366 | $ | 157,535 | ||||||||||
Net sales to third parties are attributed to the geographic regions based on the country in which the shipment originates. Amounts attributed to the geographic regions for property, plant and equipment are based on the location of the entity, which holds such assets. |
Unaudited_Quarterly_Results_of
Unaudited Quarterly Results of Operations | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||
Unaudited Quarterly Results of Operations | Unaudited Quarterly Results of Operations: | |||||||||||||||
Year ended December 31, 2014 | ||||||||||||||||
Fourth | Third | Second | First | |||||||||||||
Quarter | Quarter | Quarter | Quarter | |||||||||||||
Net Sales | $ | 191,961 | $ | 202,520 | $ | 215,198 | $ | 210,138 | ||||||||
Gross Profit | 58,270 | 62,333 | 66,470 | 61,796 | ||||||||||||
Net income attributable to Altra Industrial Motion Corp. | 9,059 | 6,946 | 12,797 | 11,365 | ||||||||||||
Earnings per share — Basic attributable to Altra Industrial Motion Corp. | ||||||||||||||||
Net income | $ | 0.34 | $ | 0.26 | $ | 0.48 | $ | 0.43 | ||||||||
Earnings per share — Diluted attributable to Altra Industrial Motion Corp. | ||||||||||||||||
Net income | $ | 0.34 | $ | 0.25 | $ | 0.46 | $ | 0.41 | ||||||||
Year ended December 31, 2013 | ||||||||||||||||
Fourth | Third | Second | First | |||||||||||||
Quarter | Quarter | Quarter | Quarter | |||||||||||||
Net Sales | $ | 180,530 | $ | 175,443 | $ | 181,095 | $ | 185,150 | ||||||||
Gross Profit | 51,805 | 53,658 | 54,419 | 55,499 | ||||||||||||
Net income attributable to Altra | 7,205 | 10,501 | 10,689 | 11,880 | ||||||||||||
Industrial Motion Corp. | ||||||||||||||||
Earnings per share — Basic | ||||||||||||||||
Net income attributable to Altra Industrial Motion Corp. | $ | 0.27 | $ | 0.39 | $ | 0.4 | $ | 0.44 | ||||||||
Earnings per share — Diluted | ||||||||||||||||
Net income attributable to Altra Industrial Motion Corp. | $ | 0.27 | $ | 0.39 | $ | 0.4 | $ | 0.44 | ||||||||
Subsequent_Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2014 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events |
In February 2015, the Company’s Board of Directors approved the grant of 111,437 shares of restricted common stock or in certain cases restricted stock units, under the 2014 Omnibus Incentive Plan. | |
On February 11, 2015, the Company has declared a dividend of $0.12 per share for the quarter ended March 31, 2015, payable on April 2, 2015 to shareholders of record as of March 18, 2015. |
Schedule_II_Valuation_and_Qual
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Valuation and Qualifying Accounts [Abstract] | ||||||||||||||||
Valuation and Qualifying Accounts | ALTRA INDUSTRIAL MOTION CORP. | |||||||||||||||
SCHEDULE II — VALUATION AND QUALIFYING ACCOUNTS | ||||||||||||||||
Reserve for Uncollectible Accounts: | Balance at | Additions | Deductions | Balance at | ||||||||||||
Beginning of | End of Period | |||||||||||||||
Period | ||||||||||||||||
For the year ended December 31, 2012 | $ | 1,092 | $ | 1,675 | $ | (207 | ) | $ | 2,560 | |||||||
For the year ended December 31, 2013 | $ | 2,560 | $ | 733 | $ | (1,048 | ) | $ | 2,245 | |||||||
For the year ended December 31, 2014 | $ | 2,245 | $ | 417 | $ | (360 | ) | $ | 2,302 | |||||||
Description_of_Business_and_Su1
Description of Business and Summary of Significant Accounting Policies (Policies) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||||||||||||
Basis of Preparation and Description of Business | Basis of Preparation and Description of Business | |||||||||||||||
Headquartered in Braintree, Massachusetts, Altra Industrial Motion Corp. (the “Company”) 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 42 product lines with production facilities in twelve countries. Altra’s leading brands include Ameridrives Couplings, Bauer Gear Motor, Bibby Turboflex, Boston Gear, Delroyd Worm Gear, Formsprag Clutch, Guardian Couplings, 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 former wholly owned subsidiary, changed its name to Altra Power Transmission, Inc. In December 2014, Altra Power Transmission, Inc. was merged into Altra Industrial Motion Corp. | ||||||||||||||||
Principles of Consolidation | Principles of Consolidation | |||||||||||||||
The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. | ||||||||||||||||
Net Income Per Share | 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 equivalent shares 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: | ||||||||||||||||
Year Ended December, 31 | ||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
Net income attributable to Altra Industrial Motion Corp. | $ | 40,167 | $ | 40,275 | $ | 24,293 | ||||||||||
Shares used in net income per common share — basic | 26,713 | 26,766 | 26,656 | |||||||||||||
Dilutive effect of the equity premium on Convertible Notes at the average price of common stock | 612 | — | — | |||||||||||||
Incremental shares of unvested restricted common stock | 78 | 75 | 100 | |||||||||||||
Shares used in net income per common share — diluted | 27,403 | 26,841 | 26,756 | |||||||||||||
Earnings per share: | ||||||||||||||||
Basic net income attributable to Altra Industrial Motion Corp. | $ | 1.5 | $ | 1.5 | $ | 0.91 | ||||||||||
Diluted net income attributable to Altra Industrial Motion Corp. | $ | 1.47 | $ | 1.5 | $ | 0.91 | ||||||||||
During the year ended December 31, 2014, the average price of the Company's common stock exceeded the current conversion price of the Company's Convertible Notes resulting in additional shares being included in net income per share in the diluted earnings per share calculation above. The Company excluded 2,571,130 shares in 2014, 3,137,351 shares in 2013 and 3,094,706 shares in 2012 (amounts not in thousands) related to the Convertible Notes (See Note 9) from the above earnings per share calculation as these shares were anti-dilutive. | ||||||||||||||||
Fair Value of Financial Instruments | Fair Value of Financial Instruments | |||||||||||||||
The carrying values of financial instruments, including accounts receivable, cash equivalents, accounts payable, and other accrued liabilities are carried at cost, which approximates fair value. Debt under the Company’s Credit Agreement with certain financial institutions including the Term Loan Facility of $133,697,000 and a Revolving Credit Facility of $200,000,000 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 December 31, 2014 and 2013. The estimated fair value of the Convertible Notes at December 31, 2014 and 2013 was $99.0 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 December 31, 2014 and 2013 are money market fund investments of $0.3 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”) as of December 31, 2014 and 2013 was $0.1 million and $0.1 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. | ||||||||||||||||
Use of Estimates | Use of Estimates | |||||||||||||||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the financial statements. Actual results could differ from those estimates. | ||||||||||||||||
Non-Controlling Interest | Non-controlling Interest | |||||||||||||||
On July 11, 2012, the Company acquired 85% of privately held Lamiflex do Brasil Equipamentos Industriais Ltda. (“Lamiflex”). | ||||||||||||||||
The Company recorded the redeemable non-controlling interest from its acquisition of an 85% ownership interest of Lamiflex at fair value at the date of acquisition. In connection with this acquisition, the Company entered into put and call option agreements with the minority shareholders for the potential purchase of the non-controlling interest at a future date at a value based on a contractually determined formula. As a result of the option agreements, the non-controlling interest is considered redeemable and is classified as temporary equity on the Company’s consolidated balance sheet. The non-controlling interest is reviewed at each subsequent reporting period and adjusted, as needed, to reflect its then redemption value. | ||||||||||||||||
Foreign Currency Translation | Foreign Currency Translation | |||||||||||||||
Assets and liabilities of subsidiaries operating outside of the United States with a functional currency other than the U.S. Dollar are translated into U.S. Dollars using exchange rates at the end of the respective period. Revenues and expenses are translated at average exchange rates effective during the respective period. | ||||||||||||||||
Foreign currency translation adjustments are included in accumulated other comprehensive income as a separate component of stockholders’ equity. Net foreign currency transaction gains and losses are included in the results of operations in the period incurred and included in other non-operating expense (income), net in the accompanying statements of income. | ||||||||||||||||
Trade Receivables | Trade Receivables | |||||||||||||||
An allowance for doubtful accounts is recorded for estimated collection losses that will be incurred in the collection of receivables. Estimated losses are based on historical collection experience, as well as a review by management of the status of all receivables. Collection losses have been within the Company’s expectations. | ||||||||||||||||
Inventories | Inventories | |||||||||||||||
Inventories are stated at the lower of cost or market using the first-in, first-out (“FIFO”) method for all entities excluding one of the Company’s subsidiaries, TB Wood’s. TB Wood’s inventory is stated at the lower of cost or market, principally using the last-in, first-out (“LIFO”) method. Inventory stated using the LIFO method approximates 7.0% and 7.5% of total inventory at December 31, 2014 and 2013, respectively. | ||||||||||||||||
The cost of inventories acquired by the Company in its acquisitions reflect fair value at the date of acquisition as determined by the Company based on the replacement cost of raw materials, the sales price of the finished goods less an appropriate amount representing the expected profitability from selling efforts, and for work-in-process the sales price of the finished goods less an appropriate amount representing the expected profitability from selling efforts and costs to complete. | ||||||||||||||||
The Company periodically reviews its quantities of inventories on hand and compares these amounts to the expected usage of each particular product or product line. The Company records a charge to cost of sales for any amounts required to reduce the carrying value of inventories to its estimated net realizable value. | ||||||||||||||||
Property, Plant and Equipment | Property, Plant and Equipment | |||||||||||||||
Property, plant and equipment are stated at cost, net of accumulated depreciation. | ||||||||||||||||
Depreciation of property, plant and equipment, including capital leases is provided using the straight-line method over the estimated useful life of the asset, as follows: | ||||||||||||||||
Buildings and improvements | 15 to 45 years | |||||||||||||||
Machinery and equipment | 2 to 15 years | |||||||||||||||
Capital lease | Life of lease | |||||||||||||||
Leasehold improvements are depreciated on a straight-line basis over the estimated life of the asset or the life of the lease, if shorter. | ||||||||||||||||
Improvements and replacements are capitalized to the extent that they increase the useful economic life or increase the expected economic benefit of the underlying asset. Repairs and maintenance expenditures are charged to expense as incurred. | ||||||||||||||||
Intangible Assets | Intangible Assets | |||||||||||||||
Intangible assets represent product technology, patents, tradenames, trademarks and customer relationships. Product technology, patents and customer relationships are amortized on a straight-line basis over 8 to 17 years, which approximates the period of economic benefit. The tradenames and trademarks are considered indefinite-lived assets and are not being amortized. Intangibles are stated at fair value on the date of acquisition. Intangibles are stated net of accumulated amortization. | ||||||||||||||||
Goodwill | Goodwill | |||||||||||||||
Goodwill represents the excess of the purchase price paid by the Company over the fair value of the net assets acquired in each of the Company’s acquisitions. | ||||||||||||||||
Impairment of Goodwill and Indefinite-Lived Intangible Assets | Impairment of Goodwill and Indefinite-Lived Intangible Assets | |||||||||||||||
The Company conducts an annual impairment review of goodwill and indefinite-lived intangible assets in December of each year, unless events occur which trigger the need for an interim impairment review. | ||||||||||||||||
In connection with the Company’s annual impairment review, goodwill is assessed for impairment by comparing the fair value of the reporting unit to the carrying value using a two-step approach. In the first step, the Company estimates future cash flows based upon historical results and current market projections, discounted at a market comparable rate. If the carrying amount of the reporting unit exceeds the estimated fair value, impairment may be present, the Company would then be required to perform a second step in its impairment analysis. In the second step, the Company would evaluate impairment losses based upon the fair value of the underlying assets and liabilities of the reporting unit, including any unrecognized intangible assets, and estimate the implied fair value of the goodwill. An impairment loss is recognized to the extent that a reporting unit’s recorded value of the goodwill asset exceeded its deemed fair value. In addition, to the extent the implied fair value of any indefinite-lived intangible asset is less than the asset’s carrying value, an impairment loss is recognized on those assets. The Company did not identify any impairment of goodwill during the periods presented. | ||||||||||||||||
For our indefinite-lived intangible assets, mainly trademarks, we estimated the fair value first by estimating the total revenue attributable to the trademarks for each of the reporting units. Second, we estimated an appropriate royalty rate using the return on assets method by estimating the required financial return on our assets, excluding trademarks, less the overall return generated by our total asset base. The return as a percentage of revenue provides an indication of our royalty rate (between 1.0% and 1.25%). We compared the estimated fair value of our trademarks with the carrying value of the trademarks and did not identify any impairment. The Company did not identify any impairment of indefinite-lived intangible assets during the periods presented. | ||||||||||||||||
Preparation of forecasts of revenue and profitability growth for use in the long-range plan and the discount rate require significant use of judgment. Changes to the discount rate and the forecasted profitability could affect the estimated fair value of one or more of the Company’s reporting units and could result in a goodwill impairment charge in a future period. | ||||||||||||||||
Impairment of Long-Lived Assets Other Than Goodwill and Indefinite-Lived Intangible Assets | Impairment of Long-Lived Assets Other Than Goodwill and Indefinite-Lived Intangible Assets | |||||||||||||||
Long-lived assets, including definite-lived intangible assets, are reviewed for impairment when events or circumstances indicate that the carrying amount of a long-lived asset may not be recovered. Long-lived assets are considered to be impaired if the carrying amount of the asset exceeds the undiscounted future cash flows expected to be generated by the asset over its remaining useful life. If an asset is considered to be impaired, the impairment is measured by the amount by which the carrying amount of the asset exceeds its fair value, and is charged to results of operations at that time. | ||||||||||||||||
The Company did not identify any impairment of long-lived assets in the periods presented. | ||||||||||||||||
Determining fair values based on discounted cash flows requires management to make significant estimates and assumptions, including forecasting of revenue and profitability growth for use in the long-range plan and estimating appropriate discount rates. Changes to the discount rate and the forecasted profitability could affect the estimated fair value of one or more of the Company’s indefinite-lived intangible assets and could result in an impairment charge in a future period. | ||||||||||||||||
Debt Issuance Costs | Debt Issuance Costs | |||||||||||||||
Costs directly related to the issuance of debt are capitalized, included in other non-current assets and amortized using the effective interest method over the term of the related debt obligation. The net carrying value of debt issuance costs was approximately $3.2 million and $4.1 million at December 31, 2014 and 2013, respectively. | ||||||||||||||||
Revenue Recognition | Revenue Recognition | |||||||||||||||
Product revenues are recognized, net of sales tax collected, at the time title and risk of loss pass to the customer, which generally occurs upon shipment to the customer. Product return reserves are accrued at the time of sale based on the historical relationship between shipments and returns, and are recorded as a reduction of net sales. | ||||||||||||||||
Certain large distribution customers receive annual volume discounts, which are estimated at the time the sale is recorded based on the estimated annual sales. | ||||||||||||||||
Shipping and Handling Costs | Shipping and Handling Costs | |||||||||||||||
Shipping and handling costs associated with sales are classified as a component of cost of sales. | ||||||||||||||||
Warranty Costs | Warranty Costs | |||||||||||||||
Estimated expenses related to product warranties are accrued at the time products are sold to customers. Estimates are established using historical information as to the nature, frequency, and average costs of warranty claims. See Note 6 to the consolidated financial statements. | ||||||||||||||||
Self-Insurance | Self-Insurance | |||||||||||||||
Certain exposures are self-insured up to pre-determined amounts, above which third-party insurance applies, for medical claims, workers’ compensation, vehicle insurance, product liability costs and general liability exposure. The accompanying balance sheets include reserves for the estimated costs associated with these self-insured risks, based on historic experience factors and management’s estimates for known and anticipated claims. A portion of medical insurance costs are offset by charging employees a premium equivalent to group insurance rates. | ||||||||||||||||
Research and Development | Research and Development | |||||||||||||||
Research and development costs are expensed as incurred. | ||||||||||||||||
Advertising | Advertising | |||||||||||||||
Advertising costs are charged to selling, general and administrative expenses as incurred and amounted to approximately $2.9 million, $2.5 million and $2.1 million, for the years ended December 31, 2014, 2013, and 2012, respectively. | ||||||||||||||||
Stock-Based Compensation | Stock-Based Compensation | |||||||||||||||
The Company's 2004 Equity Incentive Plan (the “2004 Plan”) permitted the grant of various forms of stock based compensation to our officers and senior level employees. The 2004 Plan expired in 2014 and, upon expiration, there were 750,576 shares subject to outstanding awards under the 2004 Plan. The 2014 Omnibus Incentive Plan (the “2014 Plan”) was approved by the Company's shareholders at its 2014 annual meeting. The 2014 Plan provides for various forms of stock based compensation to our directors, executive personnel and other key employees and consultants. Under the 2014 Plan, the total number of shares of common stock available for delivery pursuant to the grant of awards (“Awards”) was originally 750,000. Shares of our common stock subject to Awards or awarded under the 2004 Plan and outstanding as of the effective date of the 2014 Plan (except for substitute awards) that terminate without being exercised, expire, are forfeited or canceled, are exchanged for Awards that did not involve shares of common stock, are not issued on the stock settlement of a stock appreciation right, are withheld by the Company or tendered by a participant (either actually or by attestation) to pay an option exercise price or to pay the withholding tax on any Award, or are settled in cash in lieu of shares will again be available for Awards under the 2014 Plan. The Company recognizes stock based compensation expense on a straight line basis for shares vesting ratably under the 2004 Plan and 2014 Plan and uses the graded-vesting method of recognizing stock-based compensation expense for performance share awards based on the probability of the specific performance metrics being achieved over the requisite service period. | ||||||||||||||||
Income Taxes | Income Taxes | |||||||||||||||
The Company records income taxes using the asset and liability method. Deferred income tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective income tax bases, and operating loss and tax credit carryforwards. The Company evaluates the realizability of its net deferred tax assets and assesses the need for a valuation allowance on a quarterly basis. The future benefit to be derived from its deferred tax assets is dependent upon the Company’s ability to generate sufficient future taxable income to realize the assets. The Company records a valuation allowance to reduce its net deferred tax assets to the amount that may be more likely than not to be realized. | ||||||||||||||||
To the extent the Company establishes a valuation allowance on net deferred tax assets generated from operations, an expense will be recorded within the provision for income taxes. In periods subsequent to establishing a valuation allowance on net deferred assets from operations, if the Company were to determine that it would be able to realize its net deferred tax assets in excess of their net recorded amount, an adjustment to the valuation allowance would be recorded as a reduction to income tax expense in the period such determination was made. | ||||||||||||||||
We assess our income tax positions and record tax benefits for all years subject to examination, based upon our evaluation of the facts, circumstances and information available at the reporting date. For those tax positions for which it is more likely than not that a tax benefit will be sustained, we record the amount that has a greater than 50% likelihood of being realized upon settlement with the taxing authority that has full knowledge of all relevant information. Interest and penalties are related to unrecognized tax benefits in income tax expense in the consolidated statement of income and included in accruals and other long-term liabilities in the Company's consolidated balance sheet, where applicable. If we do not believe that it is more likely than not that a tax benefit will be sustained, no tax benefit is recognized. | ||||||||||||||||
Contingencies Policy | 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. 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. 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. | |||||||||||||||
Our estimates regarding potential losses and materiality are based on our judgment and assessment of the claims utilizing currently available information. Although we will continue to reassess our reserves and estimates based on future developments, our objective assessment of the legal merits of such claims may not always be predictive of the outcome and actual results may vary from our current estimates. We will continue to consider the applicable guidance in ASC 450-20, based on the facts known at the time of our future filings, as it relates to legal contingencies, and will adjust our disclosures as may be required under the guidance. | ||||||||||||||||
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. 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 consolidated balance sheets for potential litigation as of December 30, 2014 or December 31, 2013. | ||||||||||||||||
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. | ||||||||||||||||
Changes in Accumulated Other Comprehensive Loss by Component | Changes in Accumulated Other Comprehensive Loss by Component | |||||||||||||||
The following is a reconciliation of changes in Accumulated Other Comprehensive Loss for the periods presented: | ||||||||||||||||
Interest Rate Swap | Defined | Cumulative | Total | |||||||||||||
Benefit | Foreign | |||||||||||||||
Pension Plans | Currency | |||||||||||||||
Translation | ||||||||||||||||
Accumulated Other Comprehensive Loss by Component, January 1, 2012 | $ | — | $ | (2,485 | ) | $ | (22,591 | ) | $ | (25,076 | ) | |||||
Net current-period Other Comprehensive Income | — | (2,122 | ) | 3,795 | 1,673 | |||||||||||
Accumulated Other Comprehensive Loss by Component, January 1, 2013 | — | (4,607 | ) | (18,796 | ) | (23,403 | ) | |||||||||
Net current-period Other Comprehensive Income | 135 | 1,474 | 3,398 | 5,007 | ||||||||||||
Accumulated Other Comprehensive Income (Loss) by component, January 1, 2014 | 135 | (3,133 | ) | (15,398 | ) | (18,396 | ) | |||||||||
Net current-period Other Comprehensive Income (Loss) | 8 | (1,685 | ) | (21,342 | ) | (23,019 | ) | |||||||||
Accumulated Other Comprehensive Income (Loss) by component, December 31, 2014 | $ | 143 | $ | (4,818 | ) | $ | (36,740 | ) | $ | (41,415 | ) | |||||
Description_of_Business_and_Su2
Description of Business and Summary of Significant Accounting Policies (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||||||||||||
Reconciliation of Basic to Diluted Net Income Per Share | The following is a reconciliation of basic to diluted net income per share: | |||||||||||||||
Year Ended December, 31 | ||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
Net income attributable to Altra Industrial Motion Corp. | $ | 40,167 | $ | 40,275 | $ | 24,293 | ||||||||||
Shares used in net income per common share — basic | 26,713 | 26,766 | 26,656 | |||||||||||||
Dilutive effect of the equity premium on Convertible Notes at the average price of common stock | 612 | — | — | |||||||||||||
Incremental shares of unvested restricted common stock | 78 | 75 | 100 | |||||||||||||
Shares used in net income per common share — diluted | 27,403 | 26,841 | 26,756 | |||||||||||||
Earnings per share: | ||||||||||||||||
Basic net income attributable to Altra Industrial Motion Corp. | $ | 1.5 | $ | 1.5 | $ | 0.91 | ||||||||||
Diluted net income attributable to Altra Industrial Motion Corp. | $ | 1.47 | $ | 1.5 | $ | 0.91 | ||||||||||
Depreciation of Property, Plant and Equipment, Including Capital Leases is Provided Using Straight-Line Method Over Estimated Useful Life of Asset | Depreciation of property, plant and equipment, including capital leases is provided using the straight-line method over the estimated useful life of the asset, as follows: | |||||||||||||||
Buildings and improvements | 15 to 45 years | |||||||||||||||
Machinery and equipment | 2 to 15 years | |||||||||||||||
Capital lease | Life of lease | |||||||||||||||
Changes in Accumulated Other Comprehensive Loss by Component | The following is a reconciliation of changes in Accumulated Other Comprehensive Loss for the periods presented: | |||||||||||||||
Interest Rate Swap | Defined | Cumulative | Total | |||||||||||||
Benefit | Foreign | |||||||||||||||
Pension Plans | Currency | |||||||||||||||
Translation | ||||||||||||||||
Accumulated Other Comprehensive Loss by Component, January 1, 2012 | $ | — | $ | (2,485 | ) | $ | (22,591 | ) | $ | (25,076 | ) | |||||
Net current-period Other Comprehensive Income | — | (2,122 | ) | 3,795 | 1,673 | |||||||||||
Accumulated Other Comprehensive Loss by Component, January 1, 2013 | — | (4,607 | ) | (18,796 | ) | (23,403 | ) | |||||||||
Net current-period Other Comprehensive Income | 135 | 1,474 | 3,398 | 5,007 | ||||||||||||
Accumulated Other Comprehensive Income (Loss) by component, January 1, 2014 | 135 | (3,133 | ) | (15,398 | ) | (18,396 | ) | |||||||||
Net current-period Other Comprehensive Income (Loss) | 8 | (1,685 | ) | (21,342 | ) | (23,019 | ) | |||||||||
Accumulated Other Comprehensive Income (Loss) by component, December 31, 2014 | $ | 143 | $ | (4,818 | ) | $ | (36,740 | ) | $ | (41,415 | ) | |||||
Acquisitions_Tables
Acquisitions (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Proforma Amount on Acquisition Occurred | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Total revenues | $ | 825,723 | $ | 813,477 | $ | 818,956 | ||||||
Net income attributable to Altra Industrial Motion Corp. | $ | 42,632 | $ | 38,695 | $ | 22,373 | ||||||
Basic earnings per share: | ||||||||||||
Net income attributable to Altra Industrial Motion Corp. | $ | 1.6 | $ | 1.45 | $ | 0.84 | ||||||
Diluted earnings per share: | ||||||||||||
Net income attributable to Altra Industrial Motion Corp. | $ | 1.56 | $ | 1.44 | $ | 0.84 | ||||||
Svendborg [Member] | ||||||||||||
Preliminary Purchase Price Allocation as of Acquisition Date | The Company updated the acquisition accounting for the measurement period adjustments noted in the table below during the year ended December 31, 2014. | |||||||||||
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 | (715 | ) | 20,860 | ||||||||
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 | (1,015 | ) | 121,248 | ||||||||
Accounts payable | 4,833 | — | 4,833 | |||||||||
Accrued expenses and other current liabilities | 9,620 | 517 | 10,137 | |||||||||
Taxes payable | 10,254 | — | 10,254 | |||||||||
Deferred tax liability | 11,483 | 431 | 11,914 | |||||||||
Total liabilities assumed | 36,190 | 948 | 37,138 | |||||||||
Net assets acquired | 86,073 | (1,963 | ) | 84,110 | ||||||||
Excess of purchase price over fair value of net assets acquired | $ | 16,023 | $ | 1,963 | $ | 17,986 | ||||||
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 | ||||||||||
Guardian [Member] | ||||||||||||
Preliminary Purchase Price Allocation as of Acquisition Date | On July 1, 2014, the Company acquired all of the issued and outstanding shares of Guardian Ind., Inc. (“Guardian Couplings”) for cash consideration of $17.1 million. This transaction is referred to as the Guardian Acquisition. Guardian Couplings is a manufacturer and supplier of flywheel, motion control and general industrial couplings. The Guardian Acquisition provides the Company with increased product coverage in several core markets, including energy, farm and agriculture, and specialty machinery and is expected to provide synergies with the Company's existing product offerings. | |||||||||||
The sellers agreed to provide the Company with a limited set of representations and warranties, including those with respect to outstanding and potential liabilities. Claims for a breach of a representation or warranty are secured by a limited escrow. 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. | ||||||||||||
The Company is in the process of finalizing the valuation of certain intangibles, the related tax impact and the valuation of certain tax information to finalize fair value. The Company believes that such preliminary allocations provide a reasonable basis for estimating the fair values of assets acquired and liabilities assumed. The purchase price of $17.1 million, excluding acquisition costs of $0.2 million, is in excess of the fair value of net assets acquired by approximately $2.2 million. Current assets acquired, excluding approximately $2.0 million in cash, totaled approximately $4.0 million, non-current assets totaled approximately $9.2 million and current liabilities totaled approximately $0.3 million. | ||||||||||||
The excess of the purchase price over the fair value of the net assets acquired was recorded as goodwill. This goodwill is deductible for income tax purposes over a period of 15 years. The Company expects to develop synergies, such as lower cost country sourcing and global procurement. | ||||||||||||
Amounts Recorded as Intangible Assets | ||||||||||||
Inventories_Tables
Inventories (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Inventory Disclosure [Abstract] | ||||||||
Summary of Inventories | Inventories consisted of the following: | |||||||
December 31, | December 31, | |||||||
2014 | 2013 | |||||||
Raw materials | $ | 36,814 | $ | 56,824 | ||||
Work in process | 13,641 | 18,432 | ||||||
Finished goods | 82,281 | 68,409 | ||||||
Inventories, net | $ | 132,736 | $ | 143,665 | ||||
Property_Plant_and_Equipment_T
Property, Plant and Equipment (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Property, Plant and Equipment [Abstract] | ||||||||
Schedule of Property, Plant and Equipment | Property, plant and equipment consisted of the following: | |||||||
2014 | 2013 | |||||||
Land | $ | 26,560 | $ | 20,803 | ||||
Buildings and improvements | 44,791 | 53,078 | ||||||
Machinery and equipment | 220,896 | 207,193 | ||||||
292,247 | 281,074 | |||||||
Less-Accumulated depreciation | (135,881 | ) | (123,539 | ) | ||||
$ | 156,366 | $ | 157,535 | |||||
Goodwill_and_Intangible_Assets1
Goodwill and Intangible Assets (Tables) | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||
Changes in Goodwill | The changes in the carrying value of goodwill by segment for the years ended December 31, 2014 and 2013 are as follows: | |||||||||||||||||||||||
Clutches and Brakes | Couplings | Gearing & Power Transmission Components | Total | |||||||||||||||||||||
Gross goodwill balance as of January 1, 2013 | $ | 37,784 | $ | 36,138 | $ | 46,113 | $ | 120,035 | ||||||||||||||||
Accumulated Impairment January 1, 2013 | (3,745 | ) | (14,982 | ) | (13,083 | ) | (31,810 | ) | ||||||||||||||||
Purchase price accounting adjustments | 16,023 | — | — | 16,023 | ||||||||||||||||||||
Impact of changes in foreign currency and other | 418 | (414 | ) | 87 | 91 | |||||||||||||||||||
Net goodwill balance December 31, 2013 | 50,480 | 20,742 | 33,117 | 104,339 | ||||||||||||||||||||
Purchase price accounting adjustments | 1,963 | 2,180 | — | 4,143 | ||||||||||||||||||||
Impact of changes in foreign currency and other | (4,741 | ) | (512 | ) | (1,142 | ) | (6,395 | ) | ||||||||||||||||
Net goodwill balance December 31, 2014 | $ | 47,702 | $ | 22,410 | $ | 31,975 | $ | 102,087 | ||||||||||||||||
Intangibles and Related Accumulated Amortization | The following table provides the gross carrying value and accumulated amortization for each major class of intangible asset: | |||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||||||||||||||
Cost | Accumulated | Net | Cost | Accumulated | Net | |||||||||||||||||||
Amortization | Amortization | |||||||||||||||||||||||
Intangible Assets | ||||||||||||||||||||||||
Intangible assets not subject to amortization: | ||||||||||||||||||||||||
Tradenames and trademarks | $ | 41,257 | $ | — | $ | 41,257 | $ | 42,605 | $ | — | $ | 42,605 | ||||||||||||
Intangible assets subject to amortization: | ||||||||||||||||||||||||
Customer relationships | 118,523 | 49,849 | 68,674 | 117,848 | 42,582 | 75,266 | ||||||||||||||||||
Product technology and patents | 6,830 | 6,031 | 799 | 6,983 | 6,086 | 897 | ||||||||||||||||||
Total intangible assets | $ | 166,610 | $ | 55,880 | $ | 110,730 | $ | 167,436 | $ | 48,668 | $ | 118,768 | ||||||||||||
Warranty_Costs_Tables
Warranty Costs (Tables) | 12 Months Ended | |||||||||||
Dec. 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 years ended December 31, are as follows: | |||||||||||
December 31, | December 31, | December 31, | ||||||||||
2014 | 2013 | 2012 | ||||||||||
Balance at beginning of period | $ | 8,739 | $ | 5,625 | $ | 4,898 | ||||||
Accrued current period warranty costs | 1,537 | 2,573 | 2,386 | |||||||||
Acquired warranty reserves | — | 3,420 | — | |||||||||
Payments and adjustments | (2,484 | ) | (2,879 | ) | (1,659 | ) | ||||||
Balance at end of period | $ | 7,792 | $ | 8,739 | $ | 5,625 | ||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||
Income Before Income Taxes by Domestic and Foreign Locations | Income before income taxes by domestic and foreign locations consists of the following: | |||||||||||
December 31, | December 31, | December 31, | ||||||||||
2014 | 2013 | 2012 | ||||||||||
Domestic | $ | 33,065 | $ | 37,640 | $ | 18,083 | ||||||
Foreign | 30,053 | 21,696 | 16,276 | |||||||||
Total | $ | 63,118 | $ | 59,336 | $ | 34,359 | ||||||
Components of Provision (Benefit) for Income Taxes | The components of the provision for income taxes consist of the following: | |||||||||||
December 31, | December 31, | December 31, | ||||||||||
2014 | 2013 | 2012 | ||||||||||
Current: | ||||||||||||
Federal | $ | 12,545 | $ | 8,917 | $ | 8,370 | ||||||
State | 299 | 698 | (3,597 | ) | ||||||||
Non-US | 7,380 | 6,072 | 6,006 | |||||||||
20,224 | 15,687 | 10,779 | ||||||||||
Deferred: | ||||||||||||
Federal | 2,673 | 3,533 | (915 | ) | ||||||||
State | 198 | 378 | 1,756 | |||||||||
Non-US | (159 | ) | (447 | ) | (1,466 | ) | ||||||
2,712 | 3,464 | (625 | ) | |||||||||
Provision for income taxes | $ | 22,936 | $ | 19,151 | $ | 10,154 | ||||||
Reconciliation from Tax at U.S. Federal Statutory Rate to Company's Provision (Benefit) for Income Taxes | A reconciliation from tax at the U.S. federal statutory rate to the Company’s provision for income taxes is as follows: | |||||||||||
December 31, | December 31, | December 31, | ||||||||||
2014 | 2013 | 2012 | ||||||||||
Tax at US federal income tax rate | $ | 22,092 | $ | 20,767 | $ | 12,026 | ||||||
State taxes, net of federal income tax effect | 495 | 905 | 67 | |||||||||
Change in tax rate | 11 | (354 | ) | (267 | ) | |||||||
Foreign reorganization | 3,786 | — | — | |||||||||
Foreign taxes | (1,978 | ) | (224 | ) | 781 | |||||||
Adjustments to accrued income tax liabilities and uncertain tax positions | (287 | ) | (52 | ) | (1,289 | ) | ||||||
Valuation allowance | 612 | 120 | 506 | |||||||||
Intercompany interest | (910 | ) | (986 | ) | (1,676 | ) | ||||||
Tax credits and incentives | (666 | ) | (816 | ) | (291 | ) | ||||||
Domestic manufacturing deduction | (1,201 | ) | (839 | ) | (566 | ) | ||||||
Other | 982 | 630 | 863 | |||||||||
Provision for income taxes | $ | 22,936 | $ | 19,151 | $ | 10,154 | ||||||
Reconciliation of Gross Amount of Unrecognized Tax Benefits Excluding Accrued Interest and Penalties | A reconciliation of the gross amount of unrecognized tax benefits excluding accrued interest and penalties is as follows: | |||||||||||
December 31, | December 31, | December 31, | ||||||||||
2014 | 2013 | 2012 | ||||||||||
Balance at beginning of period | $ | 627 | $ | 747 | $ | 3,523 | ||||||
Increases related to prior year tax positions | — | — | — | |||||||||
Decreases related to prior year tax positions | — | (33 | ) | — | ||||||||
Increases related to current year tax positions | — | — | — | |||||||||
Settlements | (176 | ) | — | (2,689 | ) | |||||||
Lapse of statute of limitations | (17 | ) | (87 | ) | (87 | ) | ||||||
Balance at end of period | $ | 434 | $ | 627 | $ | 747 | ||||||
Significant Components of Deferred Tax Assets and Liabilities | Significant components of the deferred tax assets and liabilities as of December 31, 2014 and 2013 are as follows: | |||||||||||
2014 | 2013 | |||||||||||
Deferred tax assets: | ||||||||||||
Post-retirement obligations | $ | 1,363 | $ | 1,565 | ||||||||
Tax credits | 2,194 | 2,165 | ||||||||||
Expenses not currently deductible | 11,457 | 11,788 | ||||||||||
Net operating loss carryover | 5,901 | 6,376 | ||||||||||
Other | 519 | 546 | ||||||||||
Total deferred tax assets | 21,434 | 22,440 | ||||||||||
Valuation allowance for deferred tax assets | (5,974 | ) | (5,577 | ) | ||||||||
Net deferred tax assets | 15,460 | 16,863 | ||||||||||
Deferred tax liabilities: | ||||||||||||
Property, plant and equipment | 19,002 | 20,065 | ||||||||||
Intangible assets | 22,735 | 25,090 | ||||||||||
Basis difference - convertible debt | 11,875 | 11,064 | ||||||||||
Goodwill | 4,967 | 3,813 | ||||||||||
Total deferred liabilities | 58,579 | 60,032 | ||||||||||
Net deferred tax liabilities | $ | 43,119 | $ | 43,169 | ||||||||
Pension_and_Other_Employee_Ben1
Pension and Other Employee Benefits (Tables) | 12 Months Ended | |||||||||||
Dec. 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 December 31, 2014 and 2013: | |||||||||||
Pension Benefits | ||||||||||||
Year Ended | Year Ended | |||||||||||
December 31, | December 31, | |||||||||||
2014 | 2013 | |||||||||||
Change in benefit obligation: | ||||||||||||
Obligation at beginning of period | $ | 32,215 | $ | 34,629 | ||||||||
Partial settlement gain | (582 | ) | — | |||||||||
Service cost | 243 | 248 | ||||||||||
Interest cost | 1,353 | 1,250 | ||||||||||
Partial settlement payments | (2,080 | ) | — | |||||||||
Actuarial (gains) losses | 5,978 | (2,969 | ) | |||||||||
Foreign exchange effect | (909 | ) | 343 | |||||||||
Benefits paid | (1,357 | ) | (1,286 | ) | ||||||||
Obligation at end of period | $ | 34,861 | $ | 32,215 | ||||||||
Change in plan assets: | ||||||||||||
Fair value of plan assets, beginning of period | $ | 24,190 | $ | 20,100 | ||||||||
Partial settlement payments | (2,080 | ) | — | |||||||||
Actual return on plan assets | 3,668 | 182 | ||||||||||
Employer contributions | 447 | 5,194 | ||||||||||
Benefits paid | (1,357 | ) | (1,286 | ) | ||||||||
Fair value of plan assets, end of period | $ | 24,868 | $ | 24,190 | ||||||||
Funded status | $ | (9,993 | ) | $ | (8,025 | ) | ||||||
Amounts Recognized in the balance sheet consist of: | ||||||||||||
Non-current liabilities | $ | (9,993 | ) | $ | (8,025 | ) | ||||||
Total | $ | (9,993 | ) | $ | (8,025 | ) | ||||||
Discount Rate Used in Computation of Respective Benefit Obligations | The discount rate used in the computation of the respective benefit obligations at December 31, 2014 and 2013, presented above are as follows: | |||||||||||
2014 | 2013 | |||||||||||
Pension benefits | 3.7 | % | 4.6 | % | ||||||||
Components of Net Periodic Benefit Cost | The following table represents the components of the net periodic benefit cost associated with the respective plans: | |||||||||||
Pension Benefits | ||||||||||||
Year Ended | Year Ended | Year Ended | ||||||||||
December 31, | December 31, | December 31, | ||||||||||
2014 | 2013 | 2012 | ||||||||||
Service cost | $ | 243 | $ | 248 | $ | 179 | ||||||
Interest cost | 1,353 | 1,250 | 1,381 | |||||||||
Expected return on plan assets | (1,084 | ) | (1,080 | ) | (1,083 | ) | ||||||
Non-cash impact of partial pension settlement | 475 | — | — | |||||||||
Amortization of actuarial losses | 159 | 175 | 105 | |||||||||
Net periodic benefit cost | $ | 1,146 | $ | 593 | $ | 582 | ||||||
Economic Assumptions Used in Computation of Respective Net Periodic Benefit Cost | The key economic assumptions used in the computation of the respective net periodic benefit cost for the periods presented above are as follows: | |||||||||||
Pension Benefits | ||||||||||||
Year Ended | Year Ended | Year Ended | ||||||||||
December 31, | December 31, | December 31, | ||||||||||
2014 | 2013 | 2012 | ||||||||||
Discount rate | 4.6 | % | 3.75 | % | 4.75 | % | ||||||
Expected return on plan assets | 4.6 | % | 5.25 | % | 6.25 | % | ||||||
Schedule of Fair Value of Pension Plan Assets | The fair value of the Company’s pension plan assets at December 31, 2014 and 2013 by asset category is as follows: | |||||||||||
2014 | 2013 | |||||||||||
Asset Category | ||||||||||||
Fixed income (Level 1) | ||||||||||||
U.S. government | 3,554 | 2,787 | ||||||||||
Corporate bonds | ||||||||||||
Investment grade | 17,682 | 17,091 | ||||||||||
High yield | 3,090 | 3,634 | ||||||||||
Total fixed income | 24,326 | 23,512 | ||||||||||
Other (Level 2) | 286 | 338 | ||||||||||
Cash and cash equivalents (Level 1) | 256 | 340 | ||||||||||
Total assets at fair value | $ | 24,868 | $ | 24,190 | ||||||||
Schedule of Asset Allocations for Funded Retirement Plan | The asset allocations for the Company’s funded retirement plan at December 31, 2014 and 2013, respectively, and the target allocation for 2014, by asset category, are as follows: | |||||||||||
Allocation Percentage of | ||||||||||||
Plan Assets at Year-End | ||||||||||||
2014 | 2014 | 2013 | ||||||||||
Actual | Target | Actual | ||||||||||
Asset Category | ||||||||||||
Investment Grade Bonds | 86 | % | 70% - 100% | 84 | % | |||||||
High Yield Bonds | 13 | % | 0% - 25% | 15 | % | |||||||
Cash | 1 | % | 0% - 5% | 1 | % | |||||||
Summary of Amounts of Expected Benefit Payments | The following table provides the amounts of expected benefit payments, which are made from the plans’ assets and includes the participants’ share of the costs, which is funded by participant contributions. The amounts in the table are actuarially determined and reflect the Company’s best estimate given its current knowledge; actual amounts could be materially different. | |||||||||||
Pension | ||||||||||||
Benefits | ||||||||||||
Expected benefit payments (from plan assets) | ||||||||||||
2015 | 1,287 | |||||||||||
2016 | 1,366 | |||||||||||
2017 | 1,409 | |||||||||||
2018 | 1,488 | |||||||||||
2019 | 1,564 | |||||||||||
Thereafter | 7,858 | |||||||||||
LongTerm_Debt_Tables
Long-Term Debt (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Debt Disclosure [Abstract] | ||||||||||
Outstanding Debt Obligations | ||||||||||
December 31, | December 31, | |||||||||
2014 | 2013 | |||||||||
Debt: | ||||||||||
Revolving Credit Facility | $ | 40,000 | $ | 41,198 | ||||||
Convertible Notes | 85,000 | 85,000 | ||||||||
Term Loan Facility | 133,697 | 163,245 | ||||||||
Bauer Mortgage | 3,647 | — | ||||||||
Equipment Loan | 5,430 | 4,155 | ||||||||
Mortgages | 258 | 659 | ||||||||
Capital leases | 476 | 178 | ||||||||
Total debt | 268,508 | 294,435 | ||||||||
Less: debt discount, net of accretion | (12,756 | ) | (16,163 | ) | ||||||
Total debt, net of unaccreted discount | 255,752 | 278,272 | ||||||||
Less current portion of long-term debt | (15,176 | ) | (16,924 | ) | ||||||
Total long-term debt | $ | 240,576 | $ | 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 December 31, 2014: | |||||||||
December 31, | ||||||||||
2014 | ||||||||||
Principal amount of debt | $ | 85,000 | ||||||||
Unamortized discount | 12,756 | |||||||||
Carrying value of debt | $ | 72,244 | ||||||||
Interest Expense Associated with Convertible Notes | Interest expense associated with the Convertible Notes consisted of the following : | |||||||||
December 31, | December 31, | December 31, | ||||||||
2014 | 2013 | 2012 | ||||||||
Contractual coupon rate of interest | $ | 2,338 | $ | 2,338 | $ | 2,338 | ||||
Accretion of Convertible Notes discount and amortization of deferred financing costs | 3,760 | 3,494 | 3,239 | |||||||
Interest expense for the Convertible Notes | $ | 6,098 | $ | 5,832 | $ | 5,577 | ||||
Stockholders_Equity_Tables
Stockholders' Equity (Tables) | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Equity [Abstract] | |||||||
Schedule of Activity of Company's Restricted Stock Grants | The following table sets forth the activity of the Company’s restricted stock grants to date: | ||||||
Amounts not in thousands | Shares | Weighted- | |||||
Average Grant | |||||||
Date Fair Value | |||||||
Restricted shares unvested January 1, 2014 | 149,635 | $ | 23.02 | ||||
Shares granted | 136,340 | $ | 33.52 | ||||
Shares for which restrictions lapsed | (126,797 | ) | $ | 29.58 | |||
Restricted shares unvested December 31, 2014 | 159,178 | $ | 28.53 | ||||
Restructuring_Asset_Impairment1
Restructuring, Asset Impairment, and Transition Expenses (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Restructuring and Related Activities [Abstract] | ||||||||||||
Summary of Total Restructuring Expense | The following table details restructuring charges incurred by segment for the periods presented: | |||||||||||
2014 | 2013 | 2012 | ||||||||||
Clutches and Brakes | $ | 916 | $ | 373 | $ | 393 | ||||||
Couplings | 142 | 234 | 74 | |||||||||
Gearing and Power Transmission Components | 603 | 504 | 2,729 | |||||||||
Corporate | 106 | — | — | |||||||||
Total | $ | 1,767 | $ | 1,111 | $ | 3,196 | ||||||
Reconciliation of Accrued Restructuring Costs | The following is a reconciliation of the accrued restructuring costs between January 1, 2012 and December 31, 2014: | |||||||||||
All Plans | ||||||||||||
Balance at January 1, 2012 | $ | 90 | ||||||||||
Restructuring expense incurred | 3,196 | |||||||||||
Cash payments | (471 | ) | ||||||||||
Balance at January 1, 2013 | 2,815 | |||||||||||
Restructuring expense incurred | 1,111 | |||||||||||
Cash payments | (3,497 | ) | ||||||||||
Balance at December 31, 2013 | 429 | |||||||||||
Restructuring expense incurred | 1,767 | |||||||||||
Cash payments | (1,807 | ) | ||||||||||
Balance at December 31, 2014 | $ | 389 | ||||||||||
Derivative_Financial_Instrumen1
Derivative Financial Instruments (Tables) | 12 Months Ended | |||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||
Summary of Swap Recognized in Other Non-Current Assets and in Other Comprehensive Income (Loss) | The fair value of the swap recognized in other non-current assets and in other comprehensive income (loss) is as follows (in thousands): | |||||||||||||||||
Fair Value | ||||||||||||||||||
Effective Date | Notional | Fixed | Maturity | December 31, | December 31, | |||||||||||||
Amount | Rate | 2014 | 2013 | |||||||||||||||
April 30, 2013 | $ | 82,500 | 0.626 | % | November 30, 2016 | $ | 143 | $ | 135 | |||||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Commitments and Contingencies Disclosure [Abstract] | ||||||||
Future Minimum Rent Obligations under Non-Cancelable Operating and Capital Leases | Future minimum rent obligations under non-cancelable operating and capital leases are as follows: | |||||||
Year ending December 31: | Operating Leases | Capital Leases | ||||||
2015 | $ | 6,891 | $ | 115 | ||||
2016 | 5,816 | 115 | ||||||
2017 | 4,546 | 115 | ||||||
2018 | 2,538 | 115 | ||||||
2019 | 1,873 | 38 | ||||||
Thereafter | 6,951 | — | ||||||
Total lease obligations | $ | 28,615 | $ | 498 | ||||
Less amounts representing interest | (22 | ) | ||||||
Present value of minimum capital lease obligations | $ | 476 | ||||||
Segment_and_Geographic_Informa1
Segment and Geographic Information (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||||||
Reconciliation of Revenue from Segments to Consolidated | ||||||||||||||||||||
Segment financial information and a reconciliation of segment results to consolidated results follows: | ||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||
Net Sales: | ||||||||||||||||||||
Clutches & Brakes | $ | 426,293 | $ | 336,616 | $ | 334,901 | ||||||||||||||
Couplings | 134,464 | 125,169 | 128,705 | |||||||||||||||||
Gearings & Power Transmission Components | 264,514 | 265,154 | 274,004 | |||||||||||||||||
Intra-segment eliminations | (5,454 | ) | (4,721 | ) | (5,620 | ) | ||||||||||||||
Net sales | $ | 819,817 | $ | 722,218 | $ | 731,990 | ||||||||||||||
Income from operations: | ||||||||||||||||||||
Segment earnings: | ||||||||||||||||||||
Clutches & Brakes | 53,386 | 48,150 | 50,570 | |||||||||||||||||
Couplings | 16,091 | 15,021 | 18,146 | |||||||||||||||||
Gearings & Power Transmission Components | 24,534 | 23,881 | 22,421 | |||||||||||||||||
Restructuring | (1,767 | ) | (1,111 | ) | (3,196 | ) | ||||||||||||||
Corporate expenses | (17,135 | ) | (14,362 | ) | (11,090 | ) | ||||||||||||||
Income from operations | 75,109 | 71,579 | 76,851 | |||||||||||||||||
Other non-operating (income) expense: | ||||||||||||||||||||
Net interest expense | 11,994 | 10,586 | 40,790 | |||||||||||||||||
Other non-operating (income) expense, net | (3 | ) | 1,657 | 1,702 | ||||||||||||||||
11,991 | 12,243 | 42,492 | ||||||||||||||||||
Income before income taxes | 63,118 | 59,336 | 34,359 | |||||||||||||||||
Provision for income taxes | 22,936 | 19,151 | 10,154 | |||||||||||||||||
Net income | $ | 40,182 | $ | 40,185 | $ | 24,205 | ||||||||||||||
(1) Certain expenses are maintained at the corporate level and not allocated to the segments. These include various administrative expenses related to the corporate headquarters, depreciation on capitalized software costs, non-capitalizable software implementation costs, acquisition related expenses and non-cash partial pension settlements. include executive | ||||||||||||||||||||
and functional compensation costs, non-service pension costs, non-operating insurance expenses, and various administrative | ||||||||||||||||||||
expenses relating to the corporate headquarters and acquisition costs. | ||||||||||||||||||||
Reconciliation of Assets from Segment to Consolidated | ||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||
Depreciation and amortization: | ||||||||||||||||||||
Clutches & Brakes | $ | 12,936 | $ | 9,203 | $ | 8,847 | ||||||||||||||
Couplings | 5,655 | 5,402 | 5,016 | |||||||||||||||||
Gearing & Power Transmission Components | 11,061 | 11,126 | 11,891 | |||||||||||||||||
Corporate | 2,485 | 2,193 | 1,622 | |||||||||||||||||
Total depreciation and amortization | $ | 32,137 | $ | 27,924 | $ | 27,376 | ||||||||||||||
Purchase of Property, plant and equipment: | ||||||||||||||||||||
Clutches & Brakes | $ | 8,865 | $ | 6,382 | $ | 8,386 | ||||||||||||||
Couplings | 3,384 | 3,270 | 10,031 | |||||||||||||||||
Gearing & Power Transmission Components | 13,413 | 15,001 | 6,767 | |||||||||||||||||
Corporate | 2,388 | 3,170 | 6,162 | |||||||||||||||||
Total purchases of Property, plant and equipment: | $ | 28,050 | $ | 27,823 | $ | 31,346 | ||||||||||||||
Total assets: | ||||||||||||||||||||
Clutches & Brakes | $ | 334,371 | $ | 364,826 | $ | 244,255 | ||||||||||||||
Couplings | 117,805 | 109,279 | 112,910 | |||||||||||||||||
Gearing & Power Transmission Components | 190,771 | 198,715 | 202,543 | |||||||||||||||||
Corporate (2) | 41,616 | 62,856 | 103,331 | |||||||||||||||||
Total assets | $ | 684,563 | $ | 735,676 | $ | 663,039 | ||||||||||||||
(2) Corporate assets are primarily cash and cash equivalents, tax related asset accounts, certain capitalized software costs, property, plant and equipment and deferred financing costs. | ||||||||||||||||||||
Geographical Information - Net Sales | ||||||||||||||||||||
Geographic Information | Net Sales | Property, Plant and Equipment | ||||||||||||||||||
Year Ended | ||||||||||||||||||||
December 31, | December 31, | December 31, | December 31, | December 31, | ||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | ||||||||||||||||
North America | $ | 488,523 | $ | 454,115 | $ | 469,554 | $ | 90,279 | $ | 87,573 | ||||||||||
Europe | 255,049 | 216,636 | 216,485 | 51,708 | 54,533 | |||||||||||||||
Asia and the rest of the world | 76,245 | 51,467 | 45,951 | 14,379 | 15,429 | |||||||||||||||
Total | $ | 819,817 | $ | 722,218 | $ | 731,990 | $ | 156,366 | $ | 157,535 | ||||||||||
Net sales to third parties are attributed to the geographic regions based on the country in which the shipment originates. Amounts attributed to the geographic regions for property, plant and equipment are based on the location of the entity, which holds such assets. | ||||||||||||||||||||
Geographical Information - Property, Plant and Equipment | ||||||||||||||||||||
Geographic Information | Net Sales | Property, Plant and Equipment | ||||||||||||||||||
Year Ended | ||||||||||||||||||||
December 31, | December 31, | December 31, | December 31, | December 31, | ||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | ||||||||||||||||
North America | $ | 488,523 | $ | 454,115 | $ | 469,554 | $ | 90,279 | $ | 87,573 | ||||||||||
Europe | 255,049 | 216,636 | 216,485 | 51,708 | 54,533 | |||||||||||||||
Asia and the rest of the world | 76,245 | 51,467 | 45,951 | 14,379 | 15,429 | |||||||||||||||
Total | $ | 819,817 | $ | 722,218 | $ | 731,990 | $ | 156,366 | $ | 157,535 | ||||||||||
Net sales to third parties are attributed to the geographic regions based on the country in which the shipment originates. Amounts attributed to the geographic regions for property, plant and equipment are based on the location of the entity, which holds such assets. |
Unaudited_Quarterly_Results_of1
Unaudited Quarterly Results of Operations (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||
Schedule of Quarterly Results of Operations | Unaudited Quarterly Results of Operations: | |||||||||||||||
Year ended December 31, 2014 | ||||||||||||||||
Fourth | Third | Second | First | |||||||||||||
Quarter | Quarter | Quarter | Quarter | |||||||||||||
Net Sales | $ | 191,961 | $ | 202,520 | $ | 215,198 | $ | 210,138 | ||||||||
Gross Profit | 58,270 | 62,333 | 66,470 | 61,796 | ||||||||||||
Net income attributable to Altra Industrial Motion Corp. | 9,059 | 6,946 | 12,797 | 11,365 | ||||||||||||
Earnings per share — Basic attributable to Altra Industrial Motion Corp. | ||||||||||||||||
Net income | $ | 0.34 | $ | 0.26 | $ | 0.48 | $ | 0.43 | ||||||||
Earnings per share — Diluted attributable to Altra Industrial Motion Corp. | ||||||||||||||||
Net income | $ | 0.34 | $ | 0.25 | $ | 0.46 | $ | 0.41 | ||||||||
Year ended December 31, 2013 | ||||||||||||||||
Fourth | Third | Second | First | |||||||||||||
Quarter | Quarter | Quarter | Quarter | |||||||||||||
Net Sales | $ | 180,530 | $ | 175,443 | $ | 181,095 | $ | 185,150 | ||||||||
Gross Profit | 51,805 | 53,658 | 54,419 | 55,499 | ||||||||||||
Net income attributable to Altra | 7,205 | 10,501 | 10,689 | 11,880 | ||||||||||||
Industrial Motion Corp. | ||||||||||||||||
Earnings per share — Basic | ||||||||||||||||
Net income attributable to Altra Industrial Motion Corp. | $ | 0.27 | $ | 0.39 | $ | 0.4 | $ | 0.44 | ||||||||
Earnings per share — Diluted | ||||||||||||||||
Net income attributable to Altra Industrial Motion Corp. | $ | 0.27 | $ | 0.39 | $ | 0.4 | $ | 0.44 | ||||||||
Description_of_Business_and_Su3
Description of Business and Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 12 Months Ended | ||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jul. 11, 2012 | Dec. 31, 2011 | |
Reporting_Unit | |||||
subsidiary | |||||
Organization And Nature Of Business [Line Items] | |||||
Anti-dilutive shares | 2,571,130 | 3,137,351 | 3,094,706 | ||
Percentage of ownership acquired | 85.00% | ||||
Number of entity subsidiaries excluded | 1 | ||||
Percentage of inventory LIFO | 7.00% | 7.50% | |||
Impairment of long-lived assets | $0 | $0 | |||
Company's reporting units | 1 | ||||
Net carrying value of debt issuance cost | 3,200,000 | 4,100,000 | |||
Advertising costs | 2,900,000 | 2,500,000 | 2,100,000 | ||
Impairment of goodwill | 0 | 0 | 0 | ||
Tax benefit sustainable | greater than 50% | ||||
Convertible Notes [Member] | |||||
Organization And Nature Of Business [Line Items] | |||||
Estimated fair value of financial instruments | 99,000,000 | 116,500,000 | |||
Carrying amount of financial instruments | 85,000,000 | 85,000,000 | |||
Interest on notes | 2.75% | 2.75% | |||
Minimum [Member] | |||||
Organization And Nature Of Business [Line Items] | |||||
Amortization straight-line basis | 8 years | ||||
Royalty rate indication based on return as a percentage of revenue | 1.00% | ||||
Maximum [Member] | |||||
Organization And Nature Of Business [Line Items] | |||||
Amortization straight-line basis | 17 years | ||||
Royalty rate indication based on return as a percentage of revenue | 1.25% | ||||
Fair Value, Inputs, Level 2 [Member] | Interest Rate Swap [Member] | |||||
Organization And Nature Of Business [Line Items] | |||||
Estimated fair value of interest rate swap | 100,000 | 100,000 | |||
Money Market Funds [Member] | |||||
Organization And Nature Of Business [Line Items] | |||||
Cash and cash equivalents | 300,000 | 16,600,000 | |||
Brand [Member] | |||||
Organization And Nature Of Business [Line Items] | |||||
Number of product lines | 42 | ||||
Production facilities in number of countries | 12 | ||||
Term Loan Facility [Member] | |||||
Organization And Nature Of Business [Line Items] | |||||
Estimated fair value of financial instruments | 133,697,000 | ||||
Revolving Credit Facility [Member] | |||||
Organization And Nature Of Business [Line Items] | |||||
Estimated fair value of financial instruments | $200,000,000 | ||||
2004 Plan [Member] | |||||
Organization And Nature Of Business [Line Items] | |||||
Total number of shares of common stock available for delivery pursuant to the grant of awards | 750,000 |
Description_of_Business_and_Su4
Description of Business and Summary of Significant Accounting Policies - Reconciliation of Basic to Diluted Net Income Per Share (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 28, 2013 | Sep. 28, 2013 | Jun. 29, 2013 | Mar. 30, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||
Net income attributable to Altra Industrial Motion Corp. | $9,059 | $12,797 | $11,365 | $7,205 | $6,946 | $10,501 | $10,689 | $11,880 | $40,167 | $40,275 | $24,293 |
Weighted average shares, basic | 26,713 | 26,766 | 26,656 | ||||||||
Incremental Common Shares Attributable to Dilutive Effect of Conversion of Debt Securities | 612 | 0 | 0 | ||||||||
Incremental shares of unvested restricted common stock | 78 | 75 | 100 | ||||||||
Weighted average shares, diluted (in shares) | 27,403 | 26,841 | 26,756 | ||||||||
Earnings per share: | |||||||||||
Basic net income attributable to Altra Industrial Motion Corp. (in usd per share) | $0.34 | $0.48 | $0.43 | $0.27 | $0.26 | $0.39 | $0.40 | $0.44 | $1.50 | $1.50 | $0.91 |
Diluted net income attributable to Altra Industrial Motion Corp. (in usd per share) | $0.34 | $0.46 | $0.41 | $0.27 | $0.25 | $0.39 | $0.40 | $0.44 | $1.47 | $1.50 | $0.91 |
Description_of_Business_and_Su5
Description of Business and Summary of Significant Accounting Policies - Depreciation of Property, Plant and Equipment, Including Capital Leases is Provided Using Straight-Line Method Over Estimated Useful Life of Asset (Detail) | 12 Months Ended |
Dec. 31, 2014 | |
Building Improvements [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Buildings and improvements/Machinery and equipment | 15 years |
Building Improvements [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Buildings and improvements/Machinery and equipment | 45 years |
Machinery and Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Buildings and improvements/Machinery and equipment | 2 years |
Machinery and Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Buildings and improvements/Machinery and equipment | 15 years |
Description_of_Business_and_Su6
Description of Business and Summary of Significant Accounting Policies - Changes in Accumulated Other Comprehensive Loss by Component (Detail) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Accumulated Other Comprehensive Loss, Beginning Balance | ($18,396) | ($23,403) | ($25,076) | |
Net current-period Other Comprehensive Income (Loss) | -23,019 | 5,007 | 1,673 | |
Accumulated Other Comprehensive Loss, Ending Balance | -41,415 | -18,396 | -23,403 | |
Cash Flow Hedges [Member] | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Accumulated Other Comprehensive Loss, Beginning Balance | 135 | 0 | 0 | |
Net current-period Other Comprehensive Income (Loss) | 8 | 135 | ||
Accumulated Other Comprehensive Loss, Ending Balance | 143 | 135 | 0 | |
Defined Benefit Pension Plans [Member] | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Accumulated Other Comprehensive Loss, Beginning Balance | -3,133 | -4,607 | -2,485 | |
Net current-period Other Comprehensive Income (Loss) | -1,685 | 1,474 | -2,122 | |
Accumulated Other Comprehensive Loss, Ending Balance | -4,818 | -3,133 | -4,607 | |
Cumulative Foreign Currency Translation [Member] | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Accumulated Other Comprehensive Loss, Beginning Balance | -15,398 | -18,796 | -22,591 | |
Net current-period Other Comprehensive Income (Loss) | -21,342 | 3,398 | 3,795 | |
Accumulated Other Comprehensive Loss, Ending Balance | ($36,740) | ($15,398) | ($18,796) |
Acquisitions_Additional_Inform
Acquisitions - Additional Information (Detail) | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | ||||||
Dec. 31, 2014 | Dec. 31, 2013 | Jul. 01, 2014 | Jul. 01, 2014 | Jul. 11, 2012 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 17, 2013 | Dec. 17, 2013 | Dec. 31, 2014 | Dec. 31, 2014 | |
USD ($) | USD ($) | Guardian [Member] | Guardian [Member] | Guardian [Member] | Guardian [Member] | Guardian [Member] | Svendborg [Member] | Svendborg [Member] | Svendborg [Member] | Svendborg [Member] | |
Country | USD ($) | EUR (€) | USD ($) | USD ($) | Customer Relationships [Member] | USD ($) | EUR (€) | USD ($) | EUR (€) | ||
Business Acquisition [Line Items] | |||||||||||
Business acquisition cash consideration | $17,100,000 | € 17,100,000 | $110,200,000 | € 80,100,000 | |||||||
Acquisition costs | 200,000 | 2,500,000 | |||||||||
Excess of purchase price over fair value of net assets acquired | 2,200,000 | 17,986,000 | |||||||||
Cash | 2,000,000 | 7,500,000 | 5,400,000 | ||||||||
Assets, Current | 310,801,000 | 349,205,000 | 4,000,000 | ||||||||
Assets, Noncurrent | 9,200,000 | ||||||||||
Liabilities, Current | 119,628,000 | 140,073,000 | 300,000 | ||||||||
Useful lives of intangible assets | 14 years | ||||||||||
Escrow deposits established for transfer pricing claims | 11,600,000 | 8,500,000 | |||||||||
Estimated liability for transfer pricing claims by the company | 8,100,000 | ||||||||||
transfer pricing claim | 8,100,000 | 5,900,000 | |||||||||
Business acquisition number of countries in which entity operates | 7 | ||||||||||
Estimated receivables from transfer pricing claims by the company | $8,100,000 |
Acquisitions_Preliminary_Purch
Acquisitions - Preliminary Purchase Price Allocation as of Acquisition Date (Detail) (USD $) | Dec. 31, 2014 | Dec. 17, 2013 |
In Thousands, unless otherwise specified | ||
Guardian [Member] | ||
Business Acquisition [Line Items] | ||
Intangible assets | $8,100 | |
Excess of purchase price over fair value of net assets acquired | 2,200 | |
Svendborg [Member] | ||
Business Acquisition [Line Items] | ||
Purchase price, excluding acquisition costs of approximately $2.5 million | 102,096 | |
Cash and cash equivalents | 7,483 | |
Trade receivables | 20,860 | |
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 | 121,248 | |
Accounts payable | 4,833 | |
Accrued expenses and other current liabilities | 10,137 | |
Taxes payable | 10,254 | |
Deferred tax liability | 11,914 | |
Total liabilities assumed | 37,138 | |
Net assets acquired | 84,110 | |
Excess of purchase price over fair value of net assets acquired | 17,986 | |
Scenario, Previously Reported [Member] | ||
Business Acquisition [Line Items] | ||
Purchase price, excluding acquisition costs of approximately $2.5 million | 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 | |
Scenario, Adjustment [Member] | Svendborg [Member] | ||
Business Acquisition [Line Items] | ||
Purchase price, excluding acquisition costs of approximately $2.5 million | 0 | |
Cash and cash equivalents | 0 | |
Trade receivables | -715 | |
Inventories | -224 | |
Prepaid and other | -76 | |
Property, plant and equipment | 0 | |
Other assets | 0 | |
Intangible assets | 0 | |
Total assets acquired | -1,015 | |
Accounts payable | 0 | |
Accrued expenses and other current liabilities | 517 | |
Taxes payable | 0 | |
Deferred tax liability | 431 | |
Total liabilities assumed | 948 | |
Net assets acquired | -1,963 | |
Excess of purchase price over fair value of net assets acquired | $1,963 |
Acquisitions_Amounts_Recorded_
Acquisitions - Amounts Recorded as Intangible Assets (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 17, 2013 |
Guardian [Member] | ||
Intangible Asset Excluding Goodwill [Line Items] | ||
Trade names and trademarks, not subject to amortization | $650 | |
Total intangible assets | 8,100 | |
Svendborg [Member] | ||
Intangible Asset Excluding Goodwill [Line Items] | ||
Trade names and trademarks, not subject to amortization | 8,500 | |
Total intangible assets | 48,893 | |
Customer Relationships [Member] | Guardian [Member] | ||
Intangible Asset Excluding Goodwill [Line Items] | ||
Useful lives of intangible assets | 14 years | |
Customer relationships, subject to amortization | 7,450 | |
Customer Relationships [Member] | Svendborg [Member] | ||
Intangible Asset Excluding Goodwill [Line Items] | ||
Customer relationships, subject to amortization | 40,050 | |
Patents [Member] | Svendborg [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 $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Business Combinations [Abstract] | |||
Total revenues | $825,723 | $813,477 | $818,956 |
Net income attributable to Altra Industrial Motion Corp. | $42,632 | $38,695 | $22,373 |
Basic earnings per share: | |||
Net income attributable to Altra Industrial Motion Corp. (in usd per share) | $1.60 | $1.45 | $0.84 |
Diluted earnings per share: | |||
Net income attributable to Altra Industrial Motion Corp. (in usd per share) | $1.56 | $1.44 | $0.84 |
Inventories_Summary_of_Invento
Inventories - Summary of Inventories (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ||
Raw materials | $36,814 | $56,824 |
Work in process | 13,641 | 18,432 |
Finished goods | 82,281 | 68,409 |
Inventories, net | $132,736 | $143,665 |
Inventories_Additional_Informa
Inventories - Additional Information (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Inventory [Line Items] | ||
Portion of total inventory valued by LIFO method | 7.00% | 7.50% |
Change in the inventory balance using FIFO method | $1.70 | $1.60 |
Inventory Valuation by LIFO Method [Member] | ||
Inventory [Line Items] | ||
Portion of total inventory valued by LIFO method | 7.00% | |
Inventory Valuation Provision [Member] | ||
Inventory [Line Items] | ||
Provision for valuation of sales component | $0.10 | $0.70 |
Property_Plant_and_Equipment_S
Property, Plant and Equipment - Schedule of Property, Plant and Equipment (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment | $292,247 | $281,074 | |
Less-Accumulated depreciation | -135,881 | -123,539 | |
Property, plant and equipment, net | 156,366 | 157,535 | |
Depreciation expense | 23,118 | 21,419 | 20,537 |
Land [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment | 26,560 | 20,803 | |
Buildings and Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment | 44,791 | 53,078 | |
Machinery and Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment | $220,896 | $207,193 |
Goodwill_and_Intangible_Assets2
Goodwill and Intangible Assets - Changes in Goodwill (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Goodwill [Roll Forward] | ||
Gross goodwill balance as of January 1 | $120,035 | |
Accumulated impairment, January 1 | -31,810 | |
Adjustments related to the acquisition of Svendborg in 2013 and Lamiflex in 2012 | 4,143 | 16,023 |
Impact of changes in foreign currency and other | -6,395 | 91 |
Net goodwill balance December 31 | 102,087 | 104,339 |
Clutches and Brakes [Member] | ||
Goodwill [Roll Forward] | ||
Gross goodwill balance as of January 1 | 37,784 | |
Accumulated impairment, January 1 | -3,745 | |
Adjustments related to the acquisition of Svendborg in 2013 and Lamiflex in 2012 | 1,963 | 16,023 |
Impact of changes in foreign currency and other | -4,741 | 418 |
Net goodwill balance December 31 | 47,702 | 50,480 |
Couplings [Member] | ||
Goodwill [Roll Forward] | ||
Gross goodwill balance as of January 1 | 36,138 | |
Accumulated impairment, January 1 | -14,982 | |
Adjustments related to the acquisition of Svendborg in 2013 and Lamiflex in 2012 | 2,180 | 0 |
Impact of changes in foreign currency and other | -512 | -414 |
Net goodwill balance December 31 | 22,410 | 20,742 |
Gearing and Power Transmission Components [Member] [Member] | ||
Goodwill [Roll Forward] | ||
Gross goodwill balance as of January 1 | 46,113 | |
Accumulated impairment, January 1 | -13,083 | |
Adjustments related to the acquisition of Svendborg in 2013 and Lamiflex in 2012 | 0 | 0 |
Impact of changes in foreign currency and other | -1,142 | 87 |
Net goodwill balance December 31 | $31,975 | $33,117 |
Goodwill_and_Intangible_Assets3
Goodwill and Intangible Assets - Intangibles and Related Accumulated Amortization (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule Of Finite And Indefinite Lived Intangible Assets [Line Items] | ||
Total intangible assets, Cost | $166,610 | $167,436 |
Total intangible assets, Accumulated Amortization | 55,880 | 48,668 |
Total intangible assets, net | 110,730 | 118,768 |
Tradenames and Trademarks [Member] | ||
Schedule Of Finite And Indefinite Lived Intangible Assets [Line Items] | ||
Intangible assets not subject to amortization, Cost | 41,257 | 42,605 |
Customer Relationships [Member] | ||
Schedule Of Finite And Indefinite Lived Intangible Assets [Line Items] | ||
Intangible assets subject to amortization, Cost | 118,523 | 117,848 |
Total intangible assets, Accumulated Amortization | 49,849 | 42,582 |
Finite-Lived Intangible Assets, Net | 68,674 | 75,266 |
Product Technology and Patents [Member] | ||
Schedule Of Finite And Indefinite Lived Intangible Assets [Line Items] | ||
Intangible assets subject to amortization, Cost | 6,830 | 6,983 |
Total intangible assets, Accumulated Amortization | 6,031 | 6,086 |
Finite-Lived Intangible Assets, Net | $799 | $897 |
Goodwill_and_Intangible_Assets4
Goodwill and Intangible Assets - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Goodwill And Intangible Assets [Line Items] | |||
Amortization expense | $9,019,000 | $6,505,000 | $6,839,000 |
Weighted average estimated useful life of intangible assets | 11 years | ||
Estimated Amortization Expense for Intangible Assets [Member] | |||
Goodwill And Intangible Assets [Line Items] | |||
Year 2014 | 8,200,000 | ||
Year 2015 | 8,200,000 | ||
Year 2016 | 8,200,000 | ||
Year 2017 | 8,200,000 | ||
Year 2018 | 8,200,000 | ||
Thereafter | $28,500,000 | ||
Minimum [Member] | |||
Goodwill And Intangible Assets [Line Items] | |||
Useful lives of intangible assets | 8 years | ||
Maximum [Member] | |||
Goodwill And Intangible Assets [Line Items] | |||
Useful lives of intangible assets | 17 years |
Warranty_Costs_Additional_Info
Warranty Costs - Additional Information (Detail) | 12 Months Ended |
Dec. 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 $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Movement in Extended Product Warranty Accrual [Roll Forward] | |||
Balance at beginning of period | $8,739 | $5,625 | $4,898 |
Accrued current period warranty costs | 1,537 | 2,573 | 2,386 |
Acquired warranty reserves | 0 | 3,420 | 0 |
Payments and adjustments | -2,484 | -2,879 | -1,659 |
Balance at end of period | $7,792 | $8,739 | $5,625 |
Income_Taxes_Income_Before_Inc
Income Taxes - Income Before Income Taxes by Domestic and Foreign Locations (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||
Domestic | $33,065 | $37,640 | $18,083 |
Foreign | 30,053 | 21,696 | 16,276 |
Total | $63,118 | $59,336 | $34,359 |
Income_Taxes_Components_of_Pro
Income Taxes - Components of Provision (Benefit) for Income Taxes (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Current: | |||
Federal | $12,545 | $8,917 | $8,370 |
State | 299 | 698 | -3,597 |
Non-US | 7,380 | 6,072 | 6,006 |
Current, total | 20,224 | 15,687 | 10,779 |
Deferred: | |||
Federal | 2,673 | 3,533 | -915 |
State | 198 | 378 | 1,756 |
Non-US | -159 | -447 | -1,466 |
Deferred, total | 2,712 | 3,464 | -625 |
Provision for income taxes | $22,936 | $19,151 | $10,154 |
Income_Taxes_Reconciliation_fr
Income Taxes - Reconciliation from Tax at U.S. Federal Statutory Rate to Company's Provision (Benefit) for Income Taxes (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||
Tax at US federal income tax rate | $22,092 | $20,767 | $12,026 |
State taxes, net of federal income tax effect | 495 | 905 | 67 |
Change in tax rate | 11 | -354 | -267 |
Foreign reorganization | 3,786 | 0 | 0 |
Foreign taxes | -1,978 | -224 | 781 |
Adjustments to accrued income tax liabilities and uncertain tax positions | -287 | -52 | -1,289 |
Valuation allowance | 612 | 120 | 506 |
Intercompany interest | -910 | -986 | -1,676 |
Tax credits and incentives | -666 | -816 | -291 |
Domestic manufacturing deduction | -1,201 | -839 | -566 |
Other | 982 | 630 | 863 |
Provision for income taxes | $22,936 | $19,151 | $10,154 |
Income_Taxes_Reconciliation_of
Income Taxes - Reconciliation of Gross Amount of Unrecognized Tax Benefits Excluding Accrued Interest and Penalties (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance at beginning of period | $627 | $747 | $3,523 |
Increases related to prior year tax positions | 0 | 0 | 0 |
Decreases related to prior year tax positions | 0 | -33 | 0 |
Increases related to current year tax positions | 0 | 0 | 0 |
Settlements | -176 | 0 | -2,689 |
Lapse of statute of limitations | -17 | -87 | -87 |
Balance at end of period | $434 | $627 | $747 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Unrecognized Tax Benefits [Line Items] | |||
Recognized tax benefit | $22,936,000 | $19,151,000 | $10,154,000 |
Accrued interest and penalties | 100,000 | 100,000 | 200,000 |
Offset of accrued interest and penalties due to lapse of statute of limitations | 300,000 | ||
Total gross amount of interest and penalties | 200,000 | 400,000 | 400,000 |
Net operating loss | 24,300,000 | ||
Federal and state tax credits | 666,000 | 816,000 | 291,000 |
U.S. or additional non-U.S. taxes, undistributed earnings | 70,800,000 | ||
Valuation allowance | 5,974,000 | 5,577,000 | |
Minimum [Member] | |||
Unrecognized Tax Benefits [Line Items] | |||
Net operating loss, expire year | 2019 | ||
Maximum [Member] | |||
Unrecognized Tax Benefits [Line Items] | |||
Net operating loss, expire year | 2032 | ||
New York [Member] | |||
Unrecognized Tax Benefits [Line Items] | |||
Recognized tax benefit | 2,500,000 | ||
Non-U.S. [Member] | |||
Unrecognized Tax Benefits [Line Items] | |||
Net operating loss | 21,800,000 | ||
Federal and State Tax Credits [Member] | |||
Unrecognized Tax Benefits [Line Items] | |||
Federal and state tax credits | $2,400,000 | ||
Federal and State Tax Credits [Member] | Minimum [Member] | |||
Unrecognized Tax Benefits [Line Items] | |||
Net operating loss, expire year | 2015 | ||
Federal and State Tax Credits [Member] | Maximum [Member] | |||
Unrecognized Tax Benefits [Line Items] | |||
Net operating loss, expire year | 2029 |
Income_Taxes_Significant_Compo
Income Taxes - Significant Components of Deferred Tax Assets and Liabilities (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Deferred tax assets: | ||
Post-retirement obligations | $1,363 | $1,565 |
Tax credits | 2,194 | 2,165 |
Expenses not currently deductible | 11,457 | 11,788 |
Net operating loss carryover | 5,901 | 6,376 |
Other | 519 | 546 |
Total deferred tax assets | 21,434 | 22,440 |
Valuation allowance for deferred tax assets | -5,974 | -5,577 |
Net deferred tax assets | 15,460 | 16,863 |
Deferred tax liabilities: | ||
Property, plant and equipment | 19,002 | 20,065 |
Intangible assets | 22,735 | 25,090 |
Basis difference - convertible debt | 11,875 | 11,064 |
Goodwill | 4,967 | 3,813 |
Total deferred liabilities | 58,579 | 60,032 |
Net deferred tax liabilities | $43,119 | $43,169 |
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) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Employer contributions | $4,000 | $3,700 | $3,500 |
Amounts Recognized in the balance sheet consist of: | |||
Total | -9,993 | -8,025 | |
Pension Benefits [Member] | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Obligation at beginning of period | 32,215 | 34,629 | |
Partial settlement gain | -582 | 0 | |
Service cost | 243 | 248 | 179 |
Interest cost | 1,353 | 1,250 | 1,381 |
Partial settlement payments | -2,080 | 0 | |
Actuarial (gains) losses | 5,978 | -2,969 | |
Foreign exchange effect | -909 | 343 | |
Benefits paid | -1,357 | -1,286 | |
Obligation at end of period | 34,861 | 32,215 | 34,629 |
Fair value of plan assets, beginning of period | 24,190 | 20,100 | |
Partial settlement payments | -2,080 | 0 | |
Actual return on plan assets | 3,668 | 182 | |
Employer contributions | 447 | 5,194 | |
Benefits paid | -1,357 | -1,286 | |
Fair value of plan assets, end of period | 24,868 | 24,190 | 20,100 |
Funded status | -9,993 | -8,025 | |
Amounts Recognized in the balance sheet consist of: | |||
Non-current liabilities | -9,993 | -8,025 | |
Total | ($9,993) | ($8,025) |
Pension_and_Other_Employee_Ben3
Pension and Other Employee Benefits - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Defined Benefit Pension Plan With Accumulated Benefit Obligation In Excess Of Fair Value Of Plan Assets [Line Items] | |||
Accumulated benefit obligation | $34,900,000 | $32,200,000 | |
Non-U.S. pension liabilities recognized | 8,300,000 | 7,700,000 | |
Accumulated other comprehensive loss | 4,800,000 | 3,100,000 | |
Accumulated other comprehensive loss, net of tax | 1,700,000 | 1,100,000 | |
Defined contribution plans, maximum employee contribution | 75.00% | ||
Percent of contribution made | 6.00% | ||
Contribution description | The Company makes matching contributions equal to half of the first six percent of salary contributed by each employee | ||
Defined benefit plan, supplementary contributions by employer | 4,000,000 | 3,700,000 | 3,500,000 |
U.S. Pension Plan 2013 [Member] | |||
Defined Benefit Pension Plan With Accumulated Benefit Obligation In Excess Of Fair Value Of Plan Assets [Line Items] | |||
Minimum cash contribution to pension plan | 200,000 | ||
U.S. Pension Plan 2014 [Member] | |||
Defined Benefit Pension Plan With Accumulated Benefit Obligation In Excess Of Fair Value Of Plan Assets [Line Items] | |||
Minimum cash contribution to pension plan | 0 | ||
U.S. Pension Plan 2015 [Member] | |||
Defined Benefit Pension Plan With Accumulated Benefit Obligation In Excess Of Fair Value Of Plan Assets [Line Items] | |||
Minimum cash contribution to pension plan | 0 | ||
U.S. Pension Plan 2016 [Member] | |||
Defined Benefit Pension Plan With Accumulated Benefit Obligation In Excess Of Fair Value Of Plan Assets [Line Items] | |||
Minimum cash contribution to pension plan | 0 | ||
U.S. Pension Plan 2017 [Member] | |||
Defined Benefit Pension Plan With Accumulated Benefit Obligation In Excess Of Fair Value Of Plan Assets [Line Items] | |||
Minimum cash contribution to pension plan | 0 | ||
U.S. Pension Plan 2018 [Member] | |||
Defined Benefit Pension Plan With Accumulated Benefit Obligation In Excess Of Fair Value Of Plan Assets [Line Items] | |||
Minimum cash contribution to pension plan | $0 |
Pension_and_Other_Employee_Ben4
Pension and Other Employee Benefits - Discount Rate Used in Computation of Respective Benefit Obligations (Detail) (Pension Benefits [Member]) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Pension Benefits [Member] | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Discount rate used in benefit obligation | 3.70% | 4.60% |
Pension_and_Other_Employee_Ben5
Pension and Other Employee Benefits - Components of Net Periodic Benefit Cost (Detail) (Pension Benefits [Member], USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $243 | $248 | $179 |
Interest cost | 1,353 | 1,250 | 1,381 |
Expected return on plan assets | -1,084 | -1,080 | -1,083 |
Non-cash impact of partial pension settlement | 475 | 0 | 0 |
Amortization of actuarial losses | 159 | 175 | 105 |
Net periodic benefit cost | $1,146 | $593 | $582 |
Pension_and_Other_Employee_Ben6
Pension and Other Employee Benefits - Economic Assumptions Used in Computation of Respective Net Periodic Benefit Cost (Detail) (Pension Benefits [Member]) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Pension Benefits [Member] | |||
Economic Assumptions Used In Measuring Of Fair Value Securitized Loans [Line Items] | |||
Discount rate | 4.60% | 3.75% | 4.75% |
Expected return on plan assets | 4.60% | 5.25% | 6.25% |
Pension_and_Other_Employee_Ben7
Pension and Other Employee Benefits - Schedule Fair Value of Pension Plan Assets (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Defined Benefit Pension Plan With Accumulated Benefit Obligation In Excess Of Fair Value Of Plan Assets [Line Items] | ||
Total fixed income | $24,326 | $23,512 |
Total assets at fair value | 24,868 | 24,190 |
U.S. Government [Member] | ||
Defined Benefit Pension Plan With Accumulated Benefit Obligation In Excess Of Fair Value Of Plan Assets [Line Items] | ||
Total fixed income | 3,554 | 2,787 |
Investment Grade [Member] | ||
Defined Benefit Pension Plan With Accumulated Benefit Obligation In Excess Of Fair Value Of Plan Assets [Line Items] | ||
Total fixed income | 17,682 | 17,091 |
High Yield [Member] | ||
Defined Benefit Pension Plan With Accumulated Benefit Obligation In Excess Of Fair Value Of Plan Assets [Line Items] | ||
Total fixed income | 3,090 | 3,634 |
Other [Member] | ||
Defined Benefit Pension Plan With Accumulated Benefit Obligation In Excess Of Fair Value Of Plan Assets [Line Items] | ||
Total assets at fair value | 286 | 338 |
Cash and Cash Equivalents [Member] | ||
Defined Benefit Pension Plan With Accumulated Benefit Obligation In Excess Of Fair Value Of Plan Assets [Line Items] | ||
Total assets at fair value | $256 | $340 |
Pension_and_Other_Employee_Ben8
Pension and Other Employee Benefits - Schedule of Asset Allocations for Funded Retirement Plan (Detail) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Global Developed Equity [Member] | ||
Defined Benefit Pension Plan With Accumulated Benefit Obligation In Excess Of Fair Value Of Plan Assets [Line Items] | ||
Target, Minimum | 0.00% | |
Target, Maximum | 0.00% | |
Investment Grade Bonds [Member] | ||
Defined Benefit Pension Plan With Accumulated Benefit Obligation In Excess Of Fair Value Of Plan Assets [Line Items] | ||
Actual | 86.00% | 84.00% |
Target, Minimum | 70.00% | |
Target, Maximum | 100.00% | |
High Yield Bonds [Member] | ||
Defined Benefit Pension Plan With Accumulated Benefit Obligation In Excess Of Fair Value Of Plan Assets [Line Items] | ||
Actual | 13.00% | 15.00% |
Target, Minimum | 0.00% | |
Target, Maximum | 25.00% | |
Cash [Member] | ||
Defined Benefit Pension Plan With Accumulated Benefit Obligation In Excess Of Fair Value Of Plan Assets [Line Items] | ||
Actual | 1.00% | 1.00% |
Target, Minimum | 0.00% | |
Target, Maximum | 5.00% | |
Emerging Market Debt [Member] | ||
Defined Benefit Pension Plan With Accumulated Benefit Obligation In Excess Of Fair Value Of Plan Assets [Line Items] | ||
Target, Minimum | 0.00% | |
Target, Maximum | 0.00% | |
Dynamic Asset Allocation/Alternatives [Member] | ||
Defined Benefit Pension Plan With Accumulated Benefit Obligation In Excess Of Fair Value Of Plan Assets [Line Items] | ||
Target, Minimum | 0.00% | |
Target, Maximum | 0.00% |
Pension_and_Other_Employee_Ben9
Pension and Other Employee Benefits - Summary of Amounts of Expected Benefit Payments (Detail) (Pension Benefits [Member], USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Pension Benefits [Member] | |
Defined Benefit Plan, Expected Future Benefit Payments, Maturity [Line Items] | |
2015 | $1,287 |
2016 | 1,366 |
2017 | 1,409 |
2018 | 1,488 |
2019 | 1,564 |
Thereafter | $7,858 |
LongTerm_Debt_Outstanding_Debt
Long-Term Debt - Outstanding Debt Obligations (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Debt Instrument [Line Items] | ||
Total debt | $268,508 | $294,435 |
Less: debt discount, net of accretion | -12,756 | -16,163 |
Total debt, net of unaccreted discount | 255,752 | 278,272 |
Less current portion of long-term debt | -15,176 | -16,924 |
Total long-term debt | 240,576 | 261,348 |
Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Total debt | 40,000 | 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 | 133,697 | 163,245 |
Bank Loan [Member] | ||
Debt Instrument [Line Items] | ||
Total debt | 3,647 | 0 |
Equipment Loan [Member] | ||
Debt Instrument [Line Items] | ||
Total debt | 5,430 | 4,155 |
Mortgages [Member] | ||
Debt Instrument [Line Items] | ||
Total debt | 258 | 659 |
Capital Leases [Member] | ||
Debt Instrument [Line Items] | ||
Total debt | $476 | $178 |
LongTerm_Debt_Additional_Infor
Long-Term Debt - Additional Information (Detail) | 12 Months Ended | 12 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | Dec. 31, 2013 | Nov. 20, 2012 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Sep. 01, 2011 | Sep. 01, 2011 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | |
USD ($) | USD ($) | Initial Conversion Price [Member] | Term Loan [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Additional Term Loan [Member] | Additional Term Loan [Member] | Minimum [Member] | Minimum [Member] | Minimum [Member] | Maximum [Member] | Maximum [Member] | Maximum [Member] | Maximum [Member] | Term Loan Facility [Member] | Term Loan Facility [Member] | Revolving Credit Agreement [Member] | Revolving Credit Agreement [Member] | Convertible Debt [Member] | Convertible Debt [Member] | Convertible Notes [Member] | Convertible Notes [Member] | Convertible Notes [Member] | Mortgages [Member] | Mortgages [Member] | Mortgages [Member] | Mortgages [Member] | Bank Loan [Member] | Bank Loan [Member] | Capital Leases [Member] | Capital Leases [Member] | Equipment and Working Capital Notes [Member] | Equipment and Working Capital Notes [Member] | Equipment and Working Capital Notes [Member] | Equipment and Working Capital Notes [Member] | ||
USD ($) | USD ($) | USD ($) | USD ($) | EUR (€) | Eurodollar Loan [Member] | ABR Based Loans [Member] | USD ($) | Eurodollar Loan [Member] | ABR Based Loans [Member] | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | EUR (€) | USD ($) | EUR (€) | USD ($) | EUR (€) | USD ($) | USD ($) | USD ($) | CNY | Minimum [Member] | Maximum [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||||
Availability under credit facility agreement | $94,375,000 | € 50,000,000 | $100,000,000 | $200,000,000 | $200,000,000 | ||||||||||||||||||||||||||||||||
Aggregate additional term loans | 150,000,000 | ||||||||||||||||||||||||||||||||||||
Credit facility maturity date | 11/20/17 | 12/6/18 | |||||||||||||||||||||||||||||||||||
Debt instrument, maturity date | 20-Nov-17 | 6-Dec-18 | 1-Mar-31 | ||||||||||||||||||||||||||||||||||
Applicable margins for loans | 1.38% | 0.38% | 1.88% | 0.88% | |||||||||||||||||||||||||||||||||
Outstanding on Revolving Credit Facility | 40,000,000 | 41,200,000 | |||||||||||||||||||||||||||||||||||
Letters of credit outstanding | 11,000,000 | 9,800,000 | |||||||||||||||||||||||||||||||||||
Amount available under credit facility | 149,000,000 | ||||||||||||||||||||||||||||||||||||
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 (in shares) | 36.0985 | ||||||||||||||||||||||||||||||||||||
Principal amount of notes | 1,000 | ||||||||||||||||||||||||||||||||||||
Conversion price per share (in usd per share) | $26.71 | $27.70 | |||||||||||||||||||||||||||||||||||
Percentage of sale price of common stock | 130.00% | ||||||||||||||||||||||||||||||||||||
Conversion price (in usd per share) | $26.71 | ||||||||||||||||||||||||||||||||||||
Consecutive trading days | 30 days | 20 days | 30 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 | 500,000 | 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 | 3,200,000 | 4,100,000 | 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% | ||||||||||||||||||||||||||||||||||||
Available to borrow loan amount | 6,300,000 | 38,500,000 | |||||||||||||||||||||||||||||||||||
Interest rate | 5.75% | 5.75% | 2.50% | 2.50% | 5.40% | 8.00% | |||||||||||||||||||||||||||||||
Bank loan remaining amount | 3,600,000 | 3,000,000 | |||||||||||||||||||||||||||||||||||
Line of credit outstanding loan amount | 5,400,000 | 33,300,000 | |||||||||||||||||||||||||||||||||||
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 | 300,000 | 200,000 | 700,000 | 500,000 | 7,900,000 | 6,000,000 | |||||||||||||||||||||||||||||||
Borrowings under overdraft agreements | $0 | $0 |
LongTerm_Debt_Carrying_Amount_
Long-Term Debt - Carrying Amount of Debt (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Debt Instrument [Line Items] | ||
Carrying value of debt | $240,576 | $261,348 |
Convertible Debt [Member] | ||
Debt Instrument [Line Items] | ||
Principal amount of debt | 85,000 | |
Unamortized discount | 12,756 | |
Carrying value of debt | $72,244 |
LongTerm_Debt_Interest_Expense
Long-Term Debt - Interest Expense Associated with Convertible Notes (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Debt Disclosure [Abstract] | |||
Contractual coupon rate of interest | $2,338 | $2,338 | $2,338 |
Accretion of Convertible Notes discount and amortization of deferred financing costs | 3,760 | 3,494 | 3,239 |
Interest expense for the Convertible Notes | $6,098 | $5,832 | $5,577 |
Stockholders_Equity_Additional
Stockholders' Equity - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | 31-May-14 | Dec. 20, 2006 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Common stock, shares authorized | 90,000,000 | 90,000,000 | 90,000,000 | |||
Common stock, shares outstanding | 26,819,795 | 26,353,755 | 26,819,795 | |||
Preferred Stock, shares authorized | 10,000,000 | 10,000,000 | 10,000,000 | 10,000,000 | ||
Preferred Stock, shares issued | 0 | 0 | 0 | |||
Preferred Stock, shares outstanding | 0 | 0 | 0 | |||
Compensation expense | $3,400,000 | $3,200,000 | $2,700,000 | |||
Compensation expense, net of tax | 2,900,000 | 2,900,000 | 1,800,000 | |||
Weighted average remaining period | 2 years | |||||
Unrecognized compensation cost | 3,700,000 | |||||
Stock price | $28.39 | |||||
Fair market value of the shares | 3,800,000 | 2,400,000 | 3,200,000 | |||
Cash dividend declared (in usd per share) | $0.10 | $0.46 | $0.38 | $0.16 | ||
Dividend paid | 2,696,000 | 0 | 2,696,000 | 0 | ||
Stock Repurchase Program, Authorized Amount | 50,000,000 | |||||
Stock Repurchased and Retired During Period, Shares | 545,154 | |||||
Common stock purchase price (in usd per share) | $32.32 | |||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | 32,300,000 | |||||
Restricted Stock [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Intrinsic value of stock awards | $4,500,000 | |||||
2004 Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares left from termination of 2004 Plan | 750,000 | |||||
2004 Plan [Member] | Restricted Stock [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares outstanding at termination | 750,576 | |||||
Shares left from termination of 2004 Plan | 750,000 |
Stockholders_Equity_Schedule_o
Stockholders' Equity - Schedule of Activity of Company's Restricted Stock Grants (Detail) (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Restricted shares unvested, beginning balance | 149,635 |
Shares granted | 136,340 |
Shares for which restrictions lapsed | -126,797 |
Restricted shares unvested, ending balance | 159,178 |
Weighted-Average Grant Date Fair Value, beginning balance | $23.02 |
Weighted-Average Grant Date Fair Value, Shares granted | $33.52 |
Weighted-Average Grant Date Fair Value, Shares for which restrictions lapsed | $29.58 |
Weighted-Average Grant Date Fair Value, ending balance | $28.53 |
Stockholders_Equity_Share_Repu
Stockholders' Equity Share Repurchases (Details) (USD $) | 12 Months Ended | |
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | 31-May-14 |
Class of Stock [Line Items] | ||
Stock Repurchase Program, Authorized Amount | $50 | |
Stock Repurchased and Retired During Period, Shares | 545,154 | |
Common stock purchase price (in usd per share) | $32.32 | |
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $32.30 | |
Common Stock [Member] | ||
Class of Stock [Line Items] | ||
Stock Repurchased and Retired During Period, Shares | 545,154 |
Stockholders_Equity_Dividends_
Stockholders' Equity Dividends (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Equity [Abstract] | ||||
Cash dividend declared (in usd per share) | $0.10 | $0.46 | $0.38 | $0.16 |
Dividend accrued | $2,696 | $0 | $2,696 | $0 |
Concentrations_Additional_Info
Concentrations - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Customer | Customer | Customer | |
Concentration Risk [Line Items] | |||
Sales contract payments due period | 30 days | ||
Percentage of labor force is represented by collective bargaining agreements | 23.00% | ||
Number of collective bargaining agreements | 4 | ||
Collective Bargaining, July 2014 [Member] | |||
Concentration Risk [Line Items] | |||
Collective bargaining agreements, expire date | 1-Jul-15 | ||
Collective Bargaining, October 2014 [Member] | |||
Concentration Risk [Line Items] | |||
Collective bargaining agreements, expire date | 1-Oct-16 | ||
Collective Bargaining, June 2014 [Member] | |||
Concentration Risk [Line Items] | |||
Collective bargaining agreements, expire date | 1-Jun-17 | ||
Collective Bargaining, October 2016 [Member] | |||
Concentration Risk [Line Items] | |||
Collective bargaining agreements, expire date | 1-Feb-18 | ||
Sales [Member] | |||
Concentration Risk [Line Items] | |||
Maximum revenue percentage from any one customer | 10.00% | 10.00% | 10.00% |
Number of customers representing over 10% of total sales | 0 | 0 | 0 |
The Americas (Primarily U.S.) [Member] | |||
Concentration Risk [Line Items] | |||
Percentage of labor force is represented by collective bargaining agreements | 15.00% | ||
Europe [Member] | |||
Concentration Risk [Line Items] | |||
Percentage of labor force is represented by collective bargaining agreements | 56.00% |
Restructuring_Asset_Impairment2
Restructuring, Asset Impairment, and Transition Expenses - Summary of Total Restructuring Expense (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Expenses | |||
Restructuring costs | $1,767 | $1,111 | $3,196 |
Clutches and Brakes [Member] | |||
Expenses | |||
Restructuring costs | 916 | 373 | 393 |
Couplings [Member] | |||
Expenses | |||
Restructuring costs | 142 | 234 | 74 |
Gearing and Power Transmission Components [Member] [Member] | |||
Expenses | |||
Restructuring costs | 603 | 504 | 2,729 |
Corporate [Member] [Member] | |||
Expenses | |||
Restructuring costs | $106 | $0 | $0 |
Restructuring_Asset_Impairment3
Restructuring, Asset Impairment, and Transition Expenses - Reconciliation of Accrued Restructuring Costs (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Restructuring Reserve [Roll Forward] | |||
Beginning Balance | $429 | $2,815 | $90 |
Restructuring costs | 1,767 | 1,111 | 3,196 |
Cash payments | -1,807 | -3,497 | -471 |
Ending Balance | $389 | $429 | $2,815 |
Derivative_Financial_Instrumen2
Derivative Financial Instruments - Additional Information (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Apr. 30, 2013 | |
Debt Instrument [Line Items] | ||
Ineffectiveness associated with the swap | $0 | |
Interest Rate Swap [Member] | ||
Debt Instrument [Line Items] | ||
Outstanding borrowings | $82,500,000 | $82,500,000 |
Fixed Rate | 0.63% | 0.63% |
Derivative_Financial_Instrumen3
Derivative Financial Instruments - Summary of Swap Recognized in Other Non-Current Assets and in Other Comprehensive Income (Loss) (Detail) (Interest Rate Swap [Member], USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Apr. 30, 2013 |
Interest Rate Swap [Member] | |||
Derivative [Line Items] | |||
Effective Date | 30-Apr-13 | ||
Notional Amount | $82,500 | $82,500 | |
Fixed Rate | 0.63% | 0.63% | |
Maturity | 30-Nov-16 | ||
Fair Value | $143 | $135 |
Commitments_and_Contingencies_1
Commitments and Contingencies - Additional Information (Detail) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 |
USD ($) | USD ($) | USD ($) | Maximum [Member] | Purchase Commitment [Member] | Purchase Commitment [Member] | |
Inventory [Member] | Inventory [Member] | |||||
USD ($) | EUR (€) | |||||
Schedule Of Commitments And Contingencies [Line Items] | ||||||
Term of lease | 10 years | |||||
Net rent expense under operating leases | $8.80 | $8.80 | $7.80 | |||
Minimum purchase contracts | $4.40 | € 3.60 |
Commitments_and_Contingencies_2
Commitments and Contingencies - Future Minimum Rent Obligations under Non-Cancelable Operating and Capital Leases (Detail) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Operating Leases | |
2015 | $6,891 |
2016 | 5,816 |
2017 | 4,546 |
2018 | 2,538 |
2019 | 1,873 |
Thereafter | 6,951 |
Total lease obligations | 28,615 |
Capital Leases | |
2015 | 115 |
2016 | 115 |
2017 | 115 |
2018 | 115 |
2019 | 38 |
Thereafter | 0 |
Total lease obligations | 498 |
Less amounts representing interest | -22 |
Present value of minimum capital lease obligations | $476 |
Segment_and_Geographic_Informa2
Segment and Geographic Information - Additional Information (Detail) | 3 Months Ended | 12 Months Ended |
Dec. 31, 2014 | Dec. 31, 2013 | |
Segment | Segment | |
Segment Reporting [Abstract] | ||
Number of reportable segments | 3 | 1 |
Segment_and_Geographic_Informa3
Segment and Geographic Information - Reconciliation of Segment Results to Consolidated Results (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 28, 2013 | Sep. 28, 2013 | Jun. 29, 2013 | Mar. 30, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment Reporting Information [Line Items] | |||||||||||
Net sales | $191,961 | $215,198 | $210,138 | $180,530 | $202,520 | $175,443 | $181,095 | $185,150 | $819,817 | $722,218 | $731,990 |
Operating Income (Loss) | 75,109 | 71,579 | 76,851 | ||||||||
Restructuring | -1,767 | -1,111 | -3,196 | ||||||||
Interest expense, net | 11,994 | 10,586 | 40,790 | ||||||||
Other Nonoperating Income (Expense) | -3 | 1,657 | 1,702 | ||||||||
Total other non-operating expense (income), net | 11,991 | 12,243 | 42,492 | ||||||||
Total | 63,118 | 59,336 | 34,359 | ||||||||
Provision for income taxes | 22,936 | 19,151 | 10,154 | ||||||||
Net income | 40,182 | 40,185 | 24,205 | ||||||||
Depreciation and amortization | 32,137 | 27,924 | 27,376 | ||||||||
Purchase of Property, plant and equipment | 28,050 | 27,823 | 31,346 | ||||||||
Total assets | 684,563 | 735,676 | 684,563 | 735,676 | 663,039 | ||||||
Clutches and Brakes [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 426,293 | 336,616 | 334,901 | ||||||||
Operating Income (Loss) | 53,386 | 48,150 | 50,570 | ||||||||
Restructuring | -916 | -373 | -393 | ||||||||
Depreciation and amortization | 12,936 | 9,203 | 8,847 | ||||||||
Purchase of Property, plant and equipment | 8,865 | 6,382 | 8,386 | ||||||||
Total assets | 334,371 | 364,826 | 334,371 | 364,826 | 244,255 | ||||||
Couplings [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 134,464 | 125,169 | 128,705 | ||||||||
Operating Income (Loss) | 16,091 | 15,021 | 18,146 | ||||||||
Restructuring | -142 | -234 | -74 | ||||||||
Depreciation and amortization | 5,655 | 5,402 | 5,016 | ||||||||
Purchase of Property, plant and equipment | 3,384 | 3,270 | 10,031 | ||||||||
Total assets | 117,805 | 109,279 | 117,805 | 109,279 | 112,910 | ||||||
Gearing and Power Transmission Components [Member] [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 264,514 | 265,154 | 274,004 | ||||||||
Operating Income (Loss) | 24,534 | 23,881 | 22,421 | ||||||||
Restructuring | -603 | -504 | -2,729 | ||||||||
Depreciation and amortization | 11,061 | 11,126 | 11,891 | ||||||||
Purchase of Property, plant and equipment | 13,413 | 15,001 | 6,767 | ||||||||
Total assets | 190,771 | 198,715 | 190,771 | 198,715 | 202,543 | ||||||
IntersegmentElim [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | -5,454 | -4,721 | -5,620 | ||||||||
Corporate [Member] [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating Income (Loss) | -17,135 | -14,362 | -11,090 | ||||||||
Restructuring | -106 | 0 | 0 | ||||||||
Depreciation and amortization | 2,485 | 2,193 | 1,622 | ||||||||
Purchase of Property, plant and equipment | 2,388 | 3,170 | 6,162 | ||||||||
Total assets | $41,616 | $62,856 | $41,616 | $62,856 | $103,331 |
Segment_and_Geographic_Informa4
Segment and Geographic Information - Geographical Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 28, 2013 | Sep. 28, 2013 | Jun. 29, 2013 | Mar. 30, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Geographic Information | |||||||||||
Net Sales | $191,961 | $215,198 | $210,138 | $180,530 | $202,520 | $175,443 | $181,095 | $185,150 | $819,817 | $722,218 | $731,990 |
Property, plant and equipment, net | 156,366 | 157,535 | 156,366 | 157,535 | |||||||
North America [Member] | |||||||||||
Geographic Information | |||||||||||
Net Sales | 488,523 | 454,115 | 469,554 | ||||||||
Property, plant and equipment, net | 90,279 | 87,573 | 90,279 | 87,573 | |||||||
Europe [Member] | |||||||||||
Geographic Information | |||||||||||
Net Sales | 255,049 | 216,636 | 216,485 | ||||||||
Property, plant and equipment, net | 51,708 | 54,533 | 51,708 | 54,533 | |||||||
Asia and the Rest of the World [Member] | |||||||||||
Geographic Information | |||||||||||
Net Sales | 76,245 | 51,467 | 45,951 | ||||||||
Property, plant and equipment, net | $14,379 | $15,429 | $14,379 | $15,429 |
Unaudited_Quarterly_Results_of2
Unaudited Quarterly Results of Operations - Schedule of Quarterly Results of Operations (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 28, 2013 | Sep. 28, 2013 | Jun. 29, 2013 | Mar. 30, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net Sales | $191,961 | $215,198 | $210,138 | $180,530 | $202,520 | $175,443 | $181,095 | $185,150 | $819,817 | $722,218 | $731,990 |
Gross Profit | 58,270 | 66,470 | 61,796 | 51,805 | 62,333 | 53,658 | 54,419 | 55,499 | 248,869 | 215,381 | 218,548 |
Net income attributable to Altra Industrial Motion Corp. | $9,059 | $12,797 | $11,365 | $7,205 | $6,946 | $10,501 | $10,689 | $11,880 | $40,167 | $40,275 | $24,293 |
Basic net income attributable to Altra Industrial Motion Corp. (in usd per share) | $0.34 | $0.48 | $0.43 | $0.27 | $0.26 | $0.39 | $0.40 | $0.44 | $1.50 | $1.50 | $0.91 |
Diluted net income attributable to Altra Industrial Motion Corp. (in usd per share) | $0.34 | $0.46 | $0.41 | $0.27 | $0.25 | $0.39 | $0.40 | $0.44 | $1.47 | $1.50 | $0.91 |
Subsequent_Events_Additional_I
Subsequent Events - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2015 | Feb. 28, 2015 | |
Subsequent Event [Line Items] | ||||||
Cash dividend declared (in usd per share) | $0.10 | $0.46 | $0.38 | $0.16 | ||
Subsequent Event [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Cash dividend declared (in usd per share) | $0.12 | |||||
Equity Incentive Plan [Member] | Subsequent Event [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Restricted common stock shares being approved | 111,437 |
Schedule_II_Valuation_and_Qual1
Schedule II - Valuation and Qualifying Accounts (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Reserve for Uncollectible Accounts: | |||
Balance at Beginning of Period | $2,245 | $2,560 | $1,092 |
Additions | 417 | 733 | 1,675 |
Deductions | -360 | -1,048 | -207 |
Balance at End of Period | $2,302 | $2,245 | $2,560 |