Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Feb. 24, 2016 | Jun. 30, 2015 | |
Document And Entity Information [Abstract] | |||
Entity Registrant Name | ALTRA INDUSTRIAL MOTION CORP. | ||
Entity Central Index Key | 1,374,535 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Public Float | $ 688.1 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 25,874,064 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 50,320 | $ 47,503 |
Trade receivables, less allowance for doubtful accounts of $2,165 and $2,302 at December 31, 2015 and 2014, respectively | 94,720 | 106,458 |
Inventories, net | 121,156 | 132,736 |
Income tax receivable | 5,146 | 6,247 |
Prepaid expenses and other current assets | 11,217 | 8,617 |
Assets held for sale | 4,597 | 0 |
Total current assets | 287,156 | 301,561 |
Property, plant and equipment, net | 145,413 | 156,366 |
Intangible assets, net | 96,069 | 110,730 |
Goodwill | 97,309 | 102,087 |
Deferred income taxes | 3,201 | 2,066 |
Other non-current assets, net | 3,184 | 3,592 |
Total assets | 632,332 | 676,402 |
Current liabilities: | ||
Accounts payable | 40,297 | 44,298 |
Accrued payroll | 22,312 | 23,254 |
Accruals and other current liabilities | 34,990 | 33,591 |
Income tax payable | 3,563 | 3,189 |
Current portion of long-term debt | 3,187 | 15,176 |
Total current liabilities | 104,349 | 119,508 |
Long-term debt — less current portion and net of unaccreted discount | 231,568 | 240,576 |
Deferred income taxes | 44,185 | 45,185 |
Pension liabilities | 8,328 | 9,993 |
Long-term taxes payable | 647 | 629 |
Other long-term liabilities | 688 | 869 |
Redeemable non-controlling interest | $ 0 | $ 883 |
Commitments and Contingencies | ||
Stockholders’ equity: | ||
Preferred stock ($0.0001 par value, 10,000,000 shares authorized, none issued and outstanding at December 31, 2015 and 2014, respectively) | $ 0 | $ 0 |
Common stock ($0.001 par value, 90,000,000 shares authorized, 25,772,507 and 26,353,755 issued and outstanding at December 31, 2015 and 2014, respectively) | 26 | 26 |
Additional paid-in capital | 124,834 | 139,087 |
Retained earnings | 181,539 | 161,061 |
Accumulated other comprehensive loss | (63,832) | (41,415) |
Total stockholders’ equity | 242,567 | 258,759 |
Total liabilities, non-controlling interest and stockholders’ equity | $ 632,332 | $ 676,402 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 2,165 | $ 2,302 |
Preferred Stock, par value (in usd per share) | $ 0.0001 | $ 0.0001 |
Preferred Stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred Stock, shares issued (in shares) | 0 | 0 |
Preferred Stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in usd per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 90,000,000 | 90,000,000 |
Common stock, shares issued (in shares) | 25,772,507 | 26,353,755 |
Common stock, shares outstanding (in shares) | 25,772,507 | 26,353,755 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Statement [Abstract] | |||
Net sales | $ 746,652 | $ 819,817 | $ 722,218 |
Cost of sales | 518,189 | 570,948 | 506,837 |
Gross profit | 228,463 | 248,869 | 215,381 |
Operating expenses: | |||
Selling, general and administrative expenses | 139,217 | 156,471 | 130,155 |
Research and development expenses | 17,818 | 15,522 | 12,536 |
Restructuring costs | 7,214 | 1,767 | 1,111 |
Operating expenses | 164,249 | 173,760 | 143,802 |
Income from operations | 64,214 | 75,109 | 71,579 |
Other non-operating income and expense: | |||
Interest expense, net | 12,164 | 11,994 | 10,586 |
Other non-operating expense (income), net | 963 | (3) | 1,657 |
Other non-operating income and expense | 13,127 | 11,991 | 12,243 |
Income before income taxes | 51,087 | 63,118 | 59,336 |
Provision for income taxes | 15,744 | 22,936 | 19,151 |
Net income | 35,343 | 40,182 | 40,185 |
Net loss (income) attributable to non-controlling interest | 63 | (15) | 90 |
Net income attributable to Altra Industrial Motion Corp. | $ 35,406 | $ 40,167 | $ 40,275 |
Weighted average shares, basic | 26,064 | 26,713 | 26,766 |
Weighted average shares, diluted | 26,109 | 27,403 | 26,841 |
Earnings per share: | |||
Basic net income attributable to Altra Industrial Motion Corp. (in usd per share) | $ 1.36 | $ 1.50 | $ 1.50 |
Diluted net income attributable to Altra Industrial Motion Corp. (in usd per share) | 1.36 | 1.47 | 1.50 |
Cash dividend declared (in usd per share) | $ 0.57 | $ 0.46 | $ 0.38 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 35,343 | $ 40,182 | $ 40,185 |
Other Comprehensive Income (loss): | |||
Pension liability adjustment, net of tax | (989) | (1,685) | 1,474 |
Change in fair value of interest rate swap, net of tax | (283) | 8 | 135 |
Foreign currency translation adjustment, net of tax | (20,735) | (21,342) | 3,398 |
Total comprehensive income | 13,336 | 17,163 | 45,192 |
Comprehensive (income) loss attributable to non-controlling interest | (129) | (108) | 248 |
Comprehensive income attributable to Altra Industrial Motion Corp. | $ 13,207 | $ 17,055 | $ 45,440 |
Consolidated Statement of Stock
Consolidated Statement of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Redeemable Non- Controlling Interest |
Beginning balance at Dec. 31, 2012 | $ 232,012 | $ 27 | $ 152,188 | $ 103,200 | $ (23,403) | $ 1,239 |
Beginning balance (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. (1) | 40,275 | 40,275 | ||||
Net loss attributable to non-controlling interest | 90 | (90) | ||||
Dividends declared | (10,244) | (10,244) | ||||
Change in fair value of interest rate swap, net of tax | 135 | 135 | ||||
Minimum Pension adjustment, net of tax expense | 1,474 | 1,474 | ||||
Foreign currency translation adjustment, net of tax | 3,398 | 3,398 | (158) | |||
Ending balance at Dec. 31, 2013 | 269,333 | $ 27 | 154,471 | 133,231 | (18,396) | 991 |
Ending balance (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. (1) | 40,167 | 40,167 | ||||
Net loss attributable to non-controlling interest | (15) | 15 | ||||
Dividends declared | (12,337) | (12,337) | ||||
Change in fair value of interest rate swap, net of tax | 8 | 8 | ||||
Minimum Pension adjustment, net of tax expense | (1,685) | (1,685) | ||||
Repurchase of common stock | (17,618) | $ (1) | (17,617) | |||
Repurchases of common stock (in shares) | (545,000) | |||||
Foreign currency translation adjustment, net of tax | (21,342) | (21,342) | (123) | |||
Ending balance at Dec. 31, 2014 | 258,759 | $ 26 | 139,087 | 161,061 | (41,415) | 883 |
Ending balance (in shares) at Dec. 31, 2014 | 26,354,000 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock-based compensation and vesting of restricted stock | 2,822 | 2,822 | ||||
Stock based compensation and vesting of restricted stock (in shares) | 82,000 | |||||
Net income attributable to Altra Industrial Motion Corp. (1) | 35,406 | 35,406 | ||||
Net loss attributable to non-controlling interest | 63 | (63) | ||||
Purchase of non-controlling interest | (187) | 223 | (410) | (691) | ||
Dividends declared | (14,928) | (14,928) | ||||
Change in fair value of interest rate swap, net of tax | (283) | (283) | ||||
Minimum Pension adjustment, net of tax expense | (989) | (989) | ||||
Repurchase of common stock | $ (17,298) | (17,298) | ||||
Repurchases of common stock (in shares) | (662,575) | (663,000) | ||||
Foreign currency translation adjustment, net of tax | $ (20,735) | (20,735) | (129) | |||
Ending balance at Dec. 31, 2015 | $ 242,567 | $ 26 | $ 124,834 | $ 181,539 | $ (63,832) | $ 0 |
Ending balance (in shares) at Dec. 31, 2015 | 25,773,000 |
Consolidated Statement of Stoc7
Consolidated Statement of Stockholders' Equity (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Cash dividend declared (in usd per share) | $ 0.57 | $ 0.46 | $ 0.38 |
Retained Earnings | |||
Cash dividend declared (in usd per share) | $ 0.57 | $ 0.46 | $ 0.38 |
Accumulated Other Comprehensive Loss | |||
Change in fair value of interest rate swap, tax expense | $ 78 | ||
Minimum Pension adjustment, tax expense | $ 449 | $ 478 | 800 |
Tax expense for foreign currency | $ 658 | $ 203 | $ 50 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Cash flows from operating activities | |||
Net income | $ 35,343 | $ 40,182 | $ 40,185 |
Adjustments to reconcile net income to net cash flows provided by operating activities: | |||
Depreciation | 21,559 | 23,118 | 21,419 |
Amortization of intangible assets | 8,562 | 9,019 | 6,505 |
Amortization and write-offs of deferred loan costs | 1,366 | 927 | 873 |
(Gain) loss on foreign currency, net | (395) | (157) | 742 |
Amortization of inventory fair value adjustment | 0 | 2,376 | 0 |
Accretion and write-off of debt discount and premium | 3,694 | 3,407 | 3,143 |
(Gain) loss on disposal/impairment of fixed assets | 2,003 | (92) | 147 |
Provision (benefit) for deferred taxes | (170) | 2,712 | 3,464 |
Stock-based compensation | 4,004 | 3,101 | 3,173 |
Changes in operating assets and liabilities: | |||
Trade receivables | 7,223 | (1,050) | 5,791 |
Inventories | 6,049 | 5,402 | 6,412 |
Accounts payable and accrued liabilities | 2,816 | (6,055) | (708) |
Other current assets and liabilities | (3,343) | 860 | 2,156 |
Other operating assets and liabilities | (1,895) | 749 | (3,677) |
Net cash provided by operating activities | 86,816 | 84,499 | 89,625 |
Cash flows from investing activities | |||
Purchase of property, plant and equipment | (22,906) | (28,050) | (27,823) |
Proceeds from sale of property | 1,201 | 848 | 578 |
Net cash used in investing activities | (21,705) | (42,294) | (130,005) |
Cash flows from financing activities | |||
Payment of debt issuance costs | (1,006) | 0 | (670) |
Dividend payments | (14,928) | (15,033) | (7,548) |
Proceeds from Equipment Loan | 1,043 | 2,870 | 2,999 |
Payments of equipment and working capital notes | (3,480) | (1,594) | 0 |
Borrowing under Revolving Credit Facility | 120,036 | 8,000 | 21,198 |
Proceeds from mortgages | 7,355 | 3,647 | 0 |
Borrowing under Additional Term Loan | 0 | 0 | 68,871 |
Shares surrendered for tax withholding | (1,182) | (1,158) | (1,174) |
Payment on mortgages and other debt | (384) | (642) | (756) |
Common stock repurchase under share repurchase program | (17,298) | (17,618) | |
Net cash (used) provided by financing activities | (55,783) | (53,965) | 17,991 |
Effect of exchange rate changes on cash and cash equivalents | (6,511) | (4,341) | 839 |
Net change in cash and cash equivalents | 2,817 | (16,101) | (21,550) |
Cash and cash equivalents at beginning of year | 47,503 | 63,604 | 85,154 |
Cash and cash equivalents at end of period | 50,320 | 47,503 | 63,604 |
Cash paid during the period for: | |||
Interest | 7,237 | 7,618 | 6,704 |
Income taxes | 15,729 | 31,631 | 13,398 |
Non-cash Financing and Investing: | |||
Acquisition of property, plant and equipment included in accounts payable | 1,129 | 1,642 | 1,179 |
Dividend accrued | 0 | 0 | 2,696 |
Acquisition of property, plant and equipment through capital leases | 0 | 539 | 0 |
Lamiflex | |||
Cash flows from financing activities | |||
Purchase of non-controlling interest in Lamiflex | (878) | 0 | 0 |
Term Loan | |||
Cash flows from financing activities | |||
Repayments of long-term line of credit | (130,063) | (23,247) | 0 |
Revolving Credit Facility | |||
Cash flows from financing activities | |||
Repayments of long-term line of credit | (14,998) | (9,190) | 0 |
Former Term Loan Facility | |||
Cash flows from financing activities | |||
Repayments of long-term line of credit | 0 | 0 | (5,625) |
Prior Revolving Credit Facility | |||
Cash flows from financing activities | |||
Repayments of long-term line of credit | 0 | 0 | (59,304) |
Svendborg | |||
Cash flows from investing activities | |||
Acquisition, net of cash received | 0 | 0 | (94,613) |
Cash paid to escrow agent for Svendborg Transfer Pricing Claim liability | 0 | 0 | (8,147) |
Guardian | |||
Cash flows from investing activities | |||
Acquisition, net of cash received | $ 0 | $ (15,092) | $ 0 |
Description of Business and Sum
Description of Business and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
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 2015 2014 2013 Net income attributable to Altra Industrial Motion Corp. $ 35,406 $ 40,167 $ 40,275 Shares used in net income per common share — basic 26,064 26,713 26,766 Dilutive effect of the equity premium on Convertible Notes at the average price of common stock 43 612 — Incremental shares of unvested restricted common stock 2 78 75 Shares used in net income per common share — diluted 26,109 27,403 26,841 Earnings per share: Basic net income attributable to Altra Industrial Motion Corp. $ 1.36 $ 1.50 $ 1.50 Diluted net income attributable to Altra Industrial Motion Corp. $ 1.36 $ 1.47 $ 1.50 During the year ended December 31, 2015 , 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 3,209,600 shares in 2015 , 2,571,130 shares in 2014 and 3,137,351 shares in 2013 (amounts not in thousands) related to the Convertible Notes (See Note 8) from the above earnings per share calculation as these shares were anti-dilutive. Fair Value of Financial Instruments Fair value is determined based upon the exit price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants, as determined by either the principal market or the most advantageous market. Inputs used in the valuation techniques to derive fair values are classified based on a three-level hierarchy, as follows: • Level 1- Quoted prices in active markets for identical assets or liabilities. • Level 2- Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets with insufficient volume or infrequent transactions (less active markets); or model-derived • Level 3- Unobservable inputs to the valuation methodology that are significant to the measurement of fair value of assets or liabilities. The Company considers all highly liquid investments purchased with a remaining maturity of three months or less to be cash equivalents. 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 2015 Credit Agreement with certain financial institutions including the 2015 Revolving Credit Facility of $145.2 million approximates the fair value due to the variable rate nature at current market rates which approximate the terms that were negotiated in October 2015. The carrying amount of the 2.75% Convertible Notes (the “Convertible Notes”) was $85.0 million at December 31, 2015 and 2014 . The estimated fair value of the Convertible Notes at December 31, 2015 and 2014 was $91.7 million and $99.0 million , respectively, based on inputs other than quoted prices that are observable for the Convertible Notes (level 2). The Company considers all highly liquid investments purchased with a remaining maturity of three months or less to be cash equivalents and are classified as Level 1. This includes money market fund investments of $0.3 million at both December 31, 2015 and 2014 . The Company recognized an impairment loss on its Electromagnetic, Clutches and Brakes facility in Saint Barthelemy, France and its Couplings, Clutches and Brakes facility of approximately $1.1 million , and $0.9 million during the year ended December 31, 2015. The Company estimated the fair value of the buildings based on appraisals and sales prices of like properties (level 2). The net book value of the buildings are classified as an asset held for sale in the consolidated balance sheet (See note 3). 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. 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 consolidated 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 generally stated at the lower of cost or market using the first-in, first-out (“FIFO”) method. 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 $2.8 million and $3.2 million at December 31, 2015 and 2014 , 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 5 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 $3.1 million , $2.9 million and $2.5 million , for the years ended December 31, 2015 , 2014 and 2013 , respectively. 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 Benefit Pension Plans Cumulative Foreign Currency Translation Total 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 ) Cumulative losses transferred from Lamiflex — — (410 ) (410 ) Net current-period Other Comprehensive Loss (283 ) (989 ) (20,735 ) (22,007 ) Accumulated Other Comprehensive Loss by component, December 31, 2015 $ (140 ) $ (5,807 ) $ (57,885 ) $ (63,832 ) Reclassifications - Certain amounts in prior years have been reclassified to conform to the current year presentation. Recent Accounting Pronouncements Recently Issued Accounting Standards In February 2015, the FASB issued ASU 2016-02, Leases (Topic 842) (“ASU 2016-02”). The ASU requires management to recognize lease assets and lease liabilities by lessees for all operating leases. The ASU is effective for periods ending on December 15, 2018 and interim periods therein on a modified retrospective basis. We are currently evaluating the impact this guidance will have on our financial statements. In July 2015, the FASB issued ASU 2015-11, Simplifying the Measurement of Inventory , which requires most entities to measure most inventories at the lower of cost or net realizable value ("NRV"). This simplifies the evaluation from the current method of lower of cost or market, where market is based on one of three measures (i.e. replacement cost, net realizable value, or net realizable value less a normal profit margin). The ASU does not apply to inventories measured under the last-in, first-out method or the retail inventory method, and defines NRV as the "estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation." The ASU is effective on a prospective basis for the Company beginning on January 1, 2017, with early adoption permitted. This guidance is not expected to have a significant impact on our financial condition, results of operations or presentation of our financial statements. In May 2014, the FASB issued ASU No. 2014-09 Revenue from Contracts with Customers . ASU 2014-09 provides a single principles-based, five-step model to be applied to all contracts with customers. The five steps are to (i) identify the contracts with the customer, (ii) identify the performance obligations in the contact, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract and (v) recognize revenue when each performance obligation is satisfied. Revenue will be recognized when promised goods or services are transferred to the customer in an amount that reflects the consideration expected in exchange for those goods or services. In July 2015, the FASB agreed to delay the effective date of ASU 2014-09 for one year and to permit early adoption by entities as of the original effective dates. Considering the one year deferral, ASU 2014-09 will be effective for the Company beginning on January 1, 2018 and the standard allows for either full retrospective adoption or modified retrospective adoption. The Company is continuing to evaluate the impact that the adoption of this guidance will have on our financial condition, results of operations and the presentation of our financial statements. Accounting Pronouncements Recently Adopted In November 2015, the FASB issued ASU 2015-17, Balance Sheet Classification of Deferred Taxes , to simplify the presentation of deferred income taxes. The amendments in this update require that deferred tax assets and liabilities be entirely classified as noncurrent within the statement of financial position. The Company early adopted this guidance as of December 31, 2015 and elected retrospective application. Upon adoption, the Company reclassified deferred income taxes as follows: As originally Presented As Reclassified December 31, 2014 Reclassification December 31, 2014 Deferred income taxes - current assets $ 9,240 $ (9,240 ) $ — Deferred income taxes - noncurrent assets 987 1,079 2,066 Deferred income taxes - current liabilities 120 (120 ) — Deferred income taxes - noncurrent liabilities $ 53,226 (8,041 ) $ 45,185 |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2015 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories consisted of the following: December 31, December 31, Raw materials $ 34,169 $ 36,814 Work in process 12,864 13,641 Finished goods 74,123 82,281 Inventories, net $ 121,156 $ 132,736 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment consisted of the following: December 31, December 31, Land $ 22,403 $ 26,560 Buildings and improvements 46,269 44,791 Machinery and equipment 222,526 220,896 291,198 292,247 Less-Accumulated depreciation (145,785 ) (135,881 ) $ 145,413 $ 156,366 Management entered into a plan to exit its owned Electromagnetic Couplings and Brakes facility in Allones, France during 2015. The facility will be consolidated into the Company’s existing Electromagnetic Clutches and Brakes operation in Saint Barthelemy, France. The Company recognized an impairment loss on the building of approximately $1.1 million . The Company also initiated the closure of its Couplings, Clutches and Brakes facility in Changzhou, China in December 2015. The closure will be completed in early 2016 and the Company recognized an impairment loss on the building of approximately $0.9 million . These impairments were recognized in restructuring costs in the consolidated statement of income. Both of these buildings are actively being marketed by the Company and the Company expects to complete the sale of the properties within twelve months. The buildings, having a net book value of approximately $4.6 million , are classified as an asset held for sale in the consolidated balance sheet. The Company recorded $21.6 million , $23.1 million and $21.4 million of depreciation expense in the years ended December 31, 2015 , 2014 , and 2013 , respectively. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 and 2014 are as follows: Couplings, Clutches and Brakes Electromagnetic Clutches & Brakes Gearing Total Gross goodwill balance as of January 1, 2014 $ 36,484 $ 29,509 $ 70,156 $ 136,149 Accumulated impairment January 1, 2014 (7,532 ) (3,745 ) (20,533 ) (31,810 ) Purchase price accounting adjustments 4,143 — — 4,143 Impact of changes in foreign currency (4,631 ) (622 ) (1,142 ) (6,395 ) Net goodwill balance December 31, 2014 28,464 25,142 48,481 102,087 Impact of changes in foreign currency and other (3,174 ) (481 ) (1,123 ) (4,778 ) Net goodwill balance December 31, 2015 $ 25,290 $ 24,661 $ 47,358 $ 97,309 Purchase accounting adjustments in the Couplings, Clutches and Brakes segment relate to the Svendborg Acquisition and Guardian Acquisition. The following table provides the gross carrying value and accumulated amortization for each major class of intangible asset: December 31, 2015 December 31, 2014 Cost Accumulated Amortization Net Cost Accumulated Amortization Net Intangible Assets Intangible assets not subject to amortization: Tradenames and trademarks $ 39,625 $ — $ 39,625 $ 41,257 $ — $ 41,257 Intangible assets subject to amortization: Customer relationships and other 118,457 62,013 56,444 125,353 55,880 69,473 Total intangible assets $ 158,082 $ 62,013 $ 96,069 $ 166,610 $ 55,880 $ 110,730 The Company recorded $8.6 million , $9.0 million , and $6.5 million of amortization for the years ended December 31, 2015, 2014 and 2013, 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 $8.3 million in 2016, $8.3 million in each of the next four years and then $14.9 million thereafter. |
Warranty Costs
Warranty Costs | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 December 31, 2014 December 31, 2013 Balance at beginning of period $ 7,792 $ 8,739 $ 5,625 Accrued current period warranty costs 4,429 1,537 2,573 Acquired warranty reserves — — 3,420 Payments and adjustments (2,753 ) (2,484 ) (2,879 ) Balance at end of period $ 9,468 $ 7,792 $ 8,739 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income before income taxes by domestic and foreign locations consists of the following: December 31, 2015 December 31, 2014 December 31, 2013 Domestic $ 33,481 $ 33,065 $ 37,640 Foreign 17,606 30,053 21,696 Total $ 51,087 $ 63,118 $ 59,336 The components of the provision for income taxes consist of the following: December 31, 2015 December 31, 2014 December 31, 2013 Current: Federal $ 8,866 $ 12,545 $ 8,917 State 467 299 698 Non-US 6,581 7,380 6,072 15,914 20,224 15,687 Deferred: Federal 572 2,673 3,533 State 280 198 378 Non-US (1,022 ) (159 ) (447 ) (170 ) 2,712 3,464 Provision for income taxes $ 15,744 $ 22,936 $ 19,151 A reconciliation from tax at the U.S. federal statutory rate to the Company’s provision for income taxes is as follows: December 31, 2015 December 31, 2014 December 31, 2013 Tax at US federal income tax rate $ 17,881 $ 22,092 $ 20,767 State taxes, net of federal income tax effect 578 495 905 Change in tax rate 32 11 (354 ) Foreign reorganization (710 ) 3,786 — Foreign taxes (2,050 ) (2,888 ) (1,210 ) Adjustments to accrued income tax liabilities and uncertain tax positions (18 ) (287 ) (52 ) Valuation allowance 1,218 612 120 Tax credits and incentives (420 ) (666 ) (816 ) Domestic manufacturing deduction (1,051 ) (1,201 ) (839 ) Other 284 982 630 Provision for income taxes $ 15,744 $ 22,936 $ 19,151 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, 2015 December 31, 2014 December 31, 2013 Balance at beginning of period $ 434 $ 627 $ 747 Increases related to prior year tax positions — — — Decreases related to prior year tax positions — — (33 ) Increases related to current year tax positions — — — Settlements — (176 ) — Lapse of statute of limitations (25 ) (17 ) (87 ) Balance at end of period $ 409 $ 434 $ 627 The Company recognizes interest and penalties related to unrecognized tax benefits in income tax expense. The Company accrued interest and penalties of $0.1 million (primarily related to the lapse of the applicable statute of limitations), $0.1 million (offset by a $0.3 million benefit of interest and penalties primarily related to the lapse of the applicable statute of limitations), and $0.1 million during the years ended December 31, 2015 , 2014 and 2013 , respectively. The total gross amount of interest and penalties related to uncertain tax positions at December 31, 2015 , 2014 and 2013 was $0.2 million , $0.2 million , and $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, 2015 and 2014 are as follows: 2015 2014 Deferred tax assets: Post-retirement obligations $ 1,123 $ 1,363 Tax credits 1,787 2,194 Expenses not currently deductible 13,222 11,457 Net operating loss carryover 5,629 5,901 Other 771 519 Total deferred tax assets 22,532 21,434 Valuation allowance for deferred tax assets (6,728 ) (5,974 ) Net deferred tax assets 15,804 15,460 Deferred tax liabilities: Property, plant and equipment 17,737 19,002 Intangible assets 19,989 22,735 Basis difference - convertible debt 12,741 11,875 Goodwill 6,321 4,967 Total deferred liabilities 56,788 58,579 Net deferred tax liabilities $ 40,984 $ 43,119 On December 31, 2015 the Company had state net operating loss (NOL) carry forwards of $19.7 million , which expire between 2019 and 2032 , and non U.S. NOL and capital loss carryforwards of $21.6 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 $1.9 million available to reduce future income taxes that expire between 2016 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 $75.6 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 Bene
Pension and Other Employee Benefits | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 and 2014 : Pension Benefits Year ended December 31, 2015 Year ended December 31, 2014 Change in benefit obligation: Obligation at beginning of period $ 34,861 $ 32,215 Partial settlement gain — (582 ) Service cost 92 243 Interest cost 1,168 1,353 Partial settlement payments — (2,080 ) Actuarial (gains) losses 45 5,978 Foreign exchange effect (883 ) (909 ) Benefits paid (1,293 ) (1,357 ) Obligation at end of period $ 33,990 $ 34,861 Change in plan assets: Fair value of plan assets, beginning of period $ 24,868 $ 24,190 Partial settlement payments — (2,080 ) Actual return on plan assets (542 ) 3,668 Employer contributions 2,838 447 Plan expenses (209 ) — Benefits paid (1,293 ) (1,357 ) Fair value of plan assets, end of period $ 25,662 $ 24,868 Funded status $ (8,328 ) $ (9,993 ) Amounts recognized in the balance sheet consist of: Non-current liabilities $ (8,328 ) $ (9,993 ) Total $ (8,328 ) $ (9,993 ) 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, 2015 and 2014 was $34.0 million and $34.9 million , respectively. Non-U.S. pension liabilities recognized in the amounts presented above are $7.8 million and $8.3 million at December 31, 2015 and 2014 , respectively. Included in accumulated other comprehensive loss at December 31, 2015 and 2014 , is $5.8 million (net of $2.1 million in taxes) and $4.8 million (net of $1.7 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, 2015 and 2014 , presented above are as follows: 2015 2014 Pension benefits 3.90 % 3.70 % The following table represents the components of the net periodic benefit cost associated with the respective plans: Pension Benefits Year ended December 31, 2015 Year ended December 31, 2014 Year ended December 31, 2013 Service cost $ 92 $ 243 $ 248 Interest cost 1,168 1,353 1,250 Expected return on plan assets (889 ) (1,084 ) (1,080 ) Non-cash impact of partial pension settlement — 475 — Amortization of actuarial losses 385 159 175 Net periodic benefit cost $ 756 $ 1,146 $ 593 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 December 31, 2015 Year ended December 31, 2014 Year ended December 31, 2013 Discount rate 3.70 % 4.60 % 3.75 % Expected return on plan assets 3.70 % 4.60 % 5.25 % 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, 2015 and 2014 by asset category is as follows: 2015 2014 Asset Category Fixed income (Level 1) U.S. government $ 4,384 $ 3,554 Corporate bonds Investment grade 16,916 17,682 High yield 2,963 3,090 Total fixed income 24,263 24,326 Other (Level 2) 260 286 Cash and cash equivalents (Level 1) 1,139 256 Total assets at fair value $ 25,662 $ 24,868 The asset allocations for the Company’s funded retirement plan at December 31, 2015 and 2014 , respectively, and the target allocation for 2015 , by asset category, are as follows: Allocation Percentage of Plan Assets at Year-End 2015 Actual 2015 Target 2014 Actual Asset Category U.S. Government Bonds 17 % 0% - 50% 14 % Investment Grade Bonds 68 % 0% - 100% 72 % High Yield Bonds 11 % 0% - 25% 13 % Cash 4 % 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) 2016 $ 1,480 2017 1,504 2018 1,582 2019 1,675 2020 1,664 Thereafter $ 8,202 The Company contributed $2.7 million to its U.S. pension plan in 2015 . The Company has no minimum cash funding requirements associated with its pension plans for years 2016 through 2020 . Defined Contribution Plans Under the terms of the Company’s defined contribution plans, eligible employees may contribute up to 75% percent of their eligible 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 eligible compensation 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 , $4.0 million and $3.7 million during the years ended December 31, 2015 , 2014 and 2013 , respectively. |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt December 31, December 31, 2015 2014 Debt: Revolving Credit Facility $ 145,152 $ 40,000 Convertible Notes 85,000 85,000 Term Loans — 133,697 Mortgages 10,333 3,905 Equipment Loan 2,832 5,430 Capital leases 500 476 Total debt 243,817 268,508 Less: debt discount, net of accretion (9,062 ) (12,756 ) Total debt, net of unaccreted discount 234,755 255,752 Less current portion of long-term debt (3,187 ) (15,176 ) Total long-term debt $ 231,568 $ 240,576 Second Amended and Restated Credit Agreement On October 22, 2015, the Company entered into a Second Amended and Restated Credit Agreement by and among the Company, Altra Industrial Motion Netherlands, B.V. (“Altra Netherlands”), one of the Company’s foreign subsidiaries (collectively with the Company, the “Borrowers”), the lenders party to the Second Amended and Restated Credit Agreement from time to time (collectively, the “Lenders”), J.P. Morgan Securities LLC, Wells Fargo Securities, LLC, and KeyBanc Capital Markets, Inc., as joint lead arrangers and joint bookrunners, and JPMorgan Chase Bank, N.A., as administrative agent (the “Administrative Agent”), to be guaranteed through a Guarantee Agreement by certain domestic subsidiaries of the Company (each a “Guarantor” and collectively the “Guarantors”; the Guarantors collectively with the Borrowers, the “Loan Parties”), and which may be amended from time to time (the “2015 Credit Agreement”). The 2015 Credit Agreement amends and restates the Company’s former Amended and Restated Credit Agreement, dated as of December 6, 2013, as amended (the “2013 Credit Agreement”), by and among the Company, and certain of its domestic subsidiaries, including former subsidiary Altra Power Transmission, Inc., the lenders party to the Amended and Restated Credit Agreement from time to time (the “Former Lenders”), J.P. Morgan Securities LLC, Wells Fargo Securities, LLC, and KeyBanc Capital Markets, Inc., as joint lead arrangers and joint bookrunners, and the Administrative Agent, guaranteed by certain domestic subsidiaries of the Company. The 2013 Credit Agreement itself was an amendment and restatement of a prior credit agreement. Pursuant to the 2013 Credit Agreement, the Former Lenders had made available to the Borrowers a revolving credit facility (the “Prior Revolving Credit Facility”) of $200 million , which continued in effect an existing term loan then having a balance of approximately $94 million , and made an additional term loan of €50 million to Altra Netherlands. The two term loans described in the prior sentence are collectively referred to as the “Term Loans.” Under the 2015 Credit Agreement, the amount of the Prior Revolving Credit Facility has been increased to $350 million (the “2015 Revolving Credit Facility”). The amounts available under the 2015 Revolving Credit Facility can be used for general corporate purposes, including acquisitions, and to repay existing indebtedness. A portion of the 2015 Revolving Credit Facility was used to repay the Term Loans. The Company wrote off approximately $0.5 million of previously recognized deferred financing costs in connection with the repayment. The stated maturity of the 2015 Revolving Credit Facility is being extended to October 22, 2020. The maturity of the Prior Revolving Credit Facility had been December 6, 2018. The 2015 Credit Agreement continues to provide for a possible expansion of the credit facilities by an additional $150 million , which can be allocated as additional term loans and/or additional revolving credit loans. The amounts available under the 2015 Revolving Credit Facility may be drawn upon in accordance with the terms of the 2015 Credit Agreement. All amounts outstanding under the 2015 Revolving Credit Facility are due on the stated maturity or such earlier time, if any, required under the 2015 Credit Agreement. The amounts owed under the 2015 Revolving Credit Facility 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 1.25% to 2.00% , and for ABR Loans are between 0.25% and 1.00% . The amounts of the margins are calculated based on either a consolidated total net leverage ratio (as defined in the 2015 Credit Agreement), or the then applicable rating(s) of the Company’s debt if and then to the extent as provided in the 2015 Credit Agreement. The rate at December 31, 2015 was 1.5% . A portion of the 2015 Revolving Credit Facility may also be used for the issuance of letters of credit, and a portion of the amount of the 2015 Revolving Credit Facility is available for borrowings in certain agreed upon foreign currencies.The 2015 Credit Agreement contains various affirmative and negative covenants and restrictions, which among other things, will require the Borrowers 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, make certain investments, sell assets, engage in certain transactions, and effect a consolidation or merger. The 2015 Credit Agreement also contains customary events of default. Ratification Agreement Pursuant to an Omnibus Reaffirmation and Ratification and Amendment of Collateral Documents entered into on October 22, 2015 in connection with the 2015 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 dated November 20, 2012 (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 2015 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 2015 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 in favor of the Administrative Agent dated November 20, 2012 (the “2012 Security Agreements”) 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. Additional Trademark Security Agreement and Patent Security Agreement In connection with the reaffirmation of the Pledge and Security Agreement, certain of the Loan Parties delivered a new Patent Security Agreement and a new 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 and not covered by the 2012 Security Agreements. As of December 31, 2015 we had $145.2 million outstanding on our 2015 Revolving Credit Facility, including $118.2 million outstanding on our USD tranche at an interest rate of 1.92% and $26.9 million outstanding on our Euro tranche at an interest rate of 1.5% . As of December 31, 2014 we had $40.0 million outstanding on our Prior Revolving Credit Facility. As of December 31, 2015 and 2014, we had $7.0 million and $11.0 million in letters of credit outstanding, respectively. We had $163.7 million available to borrow (or $197.8 million available in the event of an acquisition) under the 2015 Revolving Credit Facility at December 31, 2015. 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, 2015 is $26.13 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. As of 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 $26.13 , for at least 20 of the last 30 consecutive trading days in the fiscal quarter ended December 31, 2015, 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, 2016. 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 2015 Revolving Credit Facility. 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, 2015 : December 31, 2015 December 31, 2014 Principal amount of debt $ 85,000 $ 85,000 Unamortized discount 9,062 12,756 Carrying value of debt $ 75,938 $ 72,244 Interest expense associated with the Convertible Notes consisted of the following: December 31, 2015 December 31, 2014 December 31, 2013 Contractual coupon rate of interest $ 2,338 $ 2,338 $ 2,338 Accretion of Convertible Notes discount and amortization of deferred financing costs 4,048 3,760 3,494 Interest expense for the Convertible Notes $ 6,386 $ 6,098 $ 5,832 The effective interest yield of the Convertible Notes due in 2031 is 8.5% and the cash coupon interest rate is 2.75% . Equipment Loan The Company entered into a loan with a bank to equip its facility in Changzhou, China during 2013. The loan is secured by certain letters of credit issued under the Company's 2015 Revolving Credit Facility in favor of the lending bank in China. The note is due in installments from 2014 through 2016 , with interest varying between 5.40% and 8.00% . The Company has an 18.4 million RMB ( $2.8 million ) line of credit outstanding at December 31, 2015. 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, 2015. Mortgages Heidelberg Germany A foreign subsidiary of the Company entered into a new mortgage with a bank for €1.5 million , or $1.7 million , secured by its facility in Heidelberg, Germany to replace its previously existing mortgage. The mortgage has an interest rate of 1.79% which is payable in monthly installments through August 2023. The mortgage has a remaining principal balance of €1.5 million or $1.6 million at December 31, 2015. As of December 31, 2014, the previously existing mortgage had a remaining principal balance of €0.2 million or $0.3 million , respectively. Esslingen Germany A foreign subsidiary of the Company entered into a mortgage with a bank for €6.0 million , or $6.7 million , secured by its facility in Esslingen, Germany. The mortgage has an interest rate of 2.5% per year which is payable in annual interest payments of €0.1 million or $0.1 million to be paid in monthly installments. The mortgage has a remaining principal balance of €6.0 million , or $6.5 million , at December 31, 2015. The principal portion of the mortgage will be due in a lump-sum payment in May 2019. Angers France A foreign subsidiary of the Company entered into a mortgage with a bank for €2.0 million , or $2.3 million , secured by its facility in Angers, France during the quarter ended September 30, 2015. The mortgage has an interest rate of 1.85% per year which is payable in monthly installments from June 2016 until May 2025. The mortgage has a balance of €2.0 million , or $2.2 million , at December 31, 2015. 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 $0.5 million at December 31, 2015 and 2014, 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, 2015 or 2014 under any of the overdraft agreements. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders’ Equity Common Stock (shares not in thousands) As of December 31, 2015 , there were 90,000,000 shares of common stock authorized and 25,772,507 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, 2015 or 2014 . 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 and grants 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 fair value of the shares repurchased are measured 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, 2015 , 2014 and 2013 was $4.0 million ( $2.8 million , net of tax), $3.4 million ( $2.9 million , net of tax), and $3.2 million ( $2.9 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, 2015 159,178 $ 28.53 Shares granted 133,893 $ 26.95 Shares for which restrictions lapsed (132,061 ) $ 26.60 Restricted shares unvested December 31, 2015 161,010 $ 28.62 Total remaining unrecognized compensation cost is approximately $4.7 million as of December 31, 2015 , and will be recognized over a weighted average remaining period of two years. Based on the stock price at December 31, 2015 , of $25.08 per share, the intrinsic value of these awards as of December 31, 2015 , was $4.0 million . The fair value of the shares in which the restrictions have lapsed was $3.5 million , $3.8 million , and $2.4 million , during 2015 , 2014 , and 2013 , 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, 2015 , the Company repurchased 662,575 shares of common stock at an average purchase price of $26.11 per share. As of December 31, 2015 , up to $15.1 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 and cash generated by operations. Dividends The Company declared and paid dividends of $0.57 per share of common stock for the year ended December 31, 2015 . The Company declared and paid dividends of $0.46 per share of common stock for the year ended December 31, 2014 . Future declarations of quarterly cash dividends are subject to approval by the Board of Directors and to the Board’s continuing determination that the declaration of dividends are in the best interest of the Company’s stockholders and are in compliance with all laws and agreements of the Company applicable to the declaration and payment of cash dividends. |
Concentrations
Concentrations | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 , 2014 and 2013 . The Company is also subject to counter party performance risk of loss in the event of non-performance by counterparties to financial instruments, such as cash and investments. Cash and 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 2016 , 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, 2015 | |
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: 2015 2014 2013 Couplings, Clutches & Brakes $ 2,527 $ 444 $ 270 Electromagnetic Clutches & Brakes 1,600 614 337 Gearing 3,080 603 504 Corporate 7 106 — Total $ 7,214 $ 1,767 $ 1,111 The amounts for 2015 are related to approximately $5.2 million in severance and $2.0 million in building impairments, while the amounts for 2014 and 2013 are limited to severance related to staff reductions and are classified in the accompanying consolidated statements of income as restructuring costs in the respective periods. In the quarter ended December 31, 2012, the Company adopted the a restructuring plan (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 or 2015. 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. In the quarter ended March 31, 2015, the Company commenced a restructuring plan (“2015 Altra Plan”) as a result of weak demand in Europe and to make certain adjustments to improve business effectiveness, reduce the number of facilities and streamline the Company's cost structure. The actions taken pursuant to the 2015 Altra Plan initially included reducing headcount, facility consolidations and related asset impairments, and limiting discretionary spending to improve profitability. The following is a reconciliation of the accrued restructuring costs between January 1, 2013 and December 31, 2015: All Plans 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 Restructuring expense incurred 7,214 Non-cash loss on impairment of fixed assets (2,003 ) Cash payments (3,389 ) Balance at December 31, 2015 $ 2,211 The total accrued restructuring reserve as of December 31, 2015 relates to severance costs to be paid to former employees in 2016 and is recorded in accruals and other current liabilities on the accompanying consolidated balance sheet. The Company expects to incur between approximately $11.0 million and $13.0 in additional restructuring expenses between 2016 and 2018 under the 2015 Altra Plan, primarily in the Couplings, Clutches & Brakes and Gearing business segments. . |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
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 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 2016 $ 7,522 $ 148 2017 5,129 148 2018 3,004 148 2019 2,282 72 2020 1,428 8 Thereafter 4,650 — Total lease obligations $ 24,015 $ 524 Less amounts representing interest (24 ) Present value of minimum capital lease obligations $ 500 Net rent expense under operating leases for the years ended December 31, 2015 , 2014 and 2013 was approximately $9.0 million , $8.8 million , $8.8 million , respectively. The Company also has minimum purchase contracts for inventory of €4.8 million ( $5.2 million ) for the year ended December 31, 2016. 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. There were no material amounts accrued in the accompanying consolidated balance sheets for potential litigation as of December 31, 2015 or 2014. 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 Informat
Segment and Geographic Information | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Segment and Geographic Information | Segment and Geographic Information During the quarter ended September 30, 2015, the Company realigned its reporting and management structure and corresponding reportable business segments as part of its business simplification efforts and the 2015 Altra Plan discussed in Note 11. This new structure is better aligned across the Company’s end markets and will better facilitate the Company’s strategic initiatives for growth, procurement and facility consolidation. The Company currently operates through three business segments that are aligned with key product types and end markets served: • Couplings, Clutches & Brakes. Couplings are the interface between two shafts, which enable power to be transmitted from one shaft to the other. Clutches in this segment are devices which use mechanical, 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. Products in this segment are generally used in heavy industrial applications and energy markets. • Electromagnetic Clutches & Brakes. Products in this segment include brakes and clutches that are used to electronically slow, stop, engage or disengage equipment utilizing electromagnetic friction type connections. Products in this segment are used in industrial and commercial markets including agricultural machinery, material handling, motion control, and turf & garden. • Gearing. Gears are utilized to reduce the speed and increase the torque of an electric motor or engine to the level required to drive a particular piece of equipment. Gears produced by the Company are primarily utilized in industrial applications. The segment information presented below for the prior periods has been reclassified to conform to the new presentation. Segment financial information and a reconciliation of segment results to consolidated results follows: Years Ended December 31, 2015 2014 2013 Net Sales: Couplings, Clutches & Brakes $ 342,299 $ 396,089 $ 301,989 Electromagnetic Clutches & Brakes 219,676 218,550 213,148 Gearing 192,252 212,628 214,152 Inter-segment eliminations (7,575 ) (7,450 ) (7,071 ) Net sales $ 746,652 $ 819,817 $ 722,218 Income from operations: Segment earnings: Couplings, Clutches & Brakes $ 38,750 $ 49,299 $ 44,658 Electromagnetic Clutches & Brakes 21,634 22,014 20,878 Gearing 21,094 22,698 21,516 Restructuring (7,214 ) (1,767 ) (1,111 ) Corporate expenses (1) (10,050 ) (17,135 ) (14,362 ) Income from operations 64,214 75,109 71,579 Other non-operating (income) expense: Interest expense, net 12,164 11,994 10,586 Other non-operating (income) expense, net 963 (3 ) 1,657 13,127 11,991 12,243 Income before income taxes 51,087 63,118 59,336 Provision for income taxes 15,744 22,936 19,151 Net income $ 35,343 $ 40,182 $ 40,185 (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. While the Company did not have any customers that represented total sales of greater than 10.5% , the Gearing business segment had one customer that approximated 10.5% of total sales during the year ended December 31, 2015. Selected information by segment (continued) Years Ended December 31, 2015 2014 2013 Depreciation and amortization: Couplings, Clutches & Brakes $ 15,897 $ 17,196 $ 13,220 Electromagnetic Clutches & Brakes 4,565 5,009 4,972 Gearing 6,617 7,447 7,539 Corporate 3,042 2,485 2,193 Total depreciation and amortization $ 30,121 $ 32,137 $ 27,924 As of the Years Ended December 31, 2015 2014 Total assets: Couplings, Clutches & Brakes $ 312,117 $ 356,272 Electromagnetic Clutches & Brakes 125,887 131,015 Gearing 150,860 155,660 Corporate (2) 43,468 33,455 Total assets $ 632,332 $ 676,402 (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, 2015 December 31, 2014 December 31, 2013 December 31, 2015 December 31, 2014 North America $ 452,172 $ 488,523 $ 454,115 $ 84,960 $ 90,279 Europe 218,857 255,049 216,636 52,949 51,708 Asia and the rest of the world 75,623 76,245 51,467 7,504 14,379 Total $ 746,652 $ 819,817 $ 722,218 $ 145,413 $ 156,366 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, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Unaudited Quarterly Results of Operations | Unaudited Quarterly Results of Operations: Year ended December 31, 2015 Fourth Quarter Third Quarter Second Quarter First Quarter Net Sales $ 173,628 $ 183,053 $ 196,610 $ 193,361 Gross Profit 54,204 55,800 59,986 58,473 Net income attributable to Altra Industrial Motion Corp. (1) 6,108 10,221 9,679 9,398 Earnings per share — Basic attributable to Altra Industrial Motion Corp. Net income $ 0.23 $ 0.39 $ 0.37 $ 0.36 Earnings per share — Diluted attributable to Altra Industrial Motion Corp. Net income attributable to Altra Industrial Motion Corp. $ 0.23 $ 0.39 $ 0.37 $ 0.36 (1) Includes restructuring costs by quarter $ 2,220 $ 651 $ 2,587 $ 1,756 Year ended December 31, 2014 Fourth Quarter Third Quarter Second Quarter First 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. (1) 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 attributable to Altra Industrial Motion Corp. $ 0.34 $ 0.25 $ 0.46 $ 0.41 (1) Includes restructuring costs by quarter $ 124 $ 1,643 $ — $ — |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On February 11, 2016 , the Company has declared a dividend of $0.15 per share for the quarter ended March 31, 2016 , payable on April 4, 2016 to shareholders of record as of March 18, 2016 . |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2015 | |
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 Beginning of Period Additions Deductions Balance at End of Period 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 For the year ended December 31, 2015 $ 2,302 $ 785 $ (922 ) $ 2,165 |
Description of Business and S25
Description of Business and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
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. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Fair value is determined based upon the exit price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants, as determined by either the principal market or the most advantageous market. Inputs used in the valuation techniques to derive fair values are classified based on a three-level hierarchy, as follows: • Level 1- Quoted prices in active markets for identical assets or liabilities. • Level 2- Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets with insufficient volume or infrequent transactions (less active markets); or model-derived • Level 3- Unobservable inputs to the valuation methodology that are significant to the measurement of fair value of assets or liabilities. The Company considers all highly liquid investments purchased with a remaining maturity of three months or less to be cash equivalents. 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. |
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. |
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 consolidated 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 generally stated at the lower of cost or market using the first-in, first-out (“FIFO”) method. 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. |
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. Amounts collected from our customers for shipping and handling are recognized as revenue. |
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 5 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 $3.1 million , $2.9 million and $2.5 million , for the years ended December 31, 2015 , 2014 and 2013 , respectively. |
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. |
Reclassifications | Reclassifications - Certain amounts in prior years have been reclassified to conform to the current year presentation. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Recently Issued Accounting Standards In February 2015, the FASB issued ASU 2016-02, Leases (Topic 842) (“ASU 2016-02”). The ASU requires management to recognize lease assets and lease liabilities by lessees for all operating leases. The ASU is effective for periods ending on December 15, 2018 and interim periods therein on a modified retrospective basis. We are currently evaluating the impact this guidance will have on our financial statements. In July 2015, the FASB issued ASU 2015-11, Simplifying the Measurement of Inventory , which requires most entities to measure most inventories at the lower of cost or net realizable value ("NRV"). This simplifies the evaluation from the current method of lower of cost or market, where market is based on one of three measures (i.e. replacement cost, net realizable value, or net realizable value less a normal profit margin). The ASU does not apply to inventories measured under the last-in, first-out method or the retail inventory method, and defines NRV as the "estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation." The ASU is effective on a prospective basis for the Company beginning on January 1, 2017, with early adoption permitted. This guidance is not expected to have a significant impact on our financial condition, results of operations or presentation of our financial statements. In May 2014, the FASB issued ASU No. 2014-09 Revenue from Contracts with Customers . ASU 2014-09 provides a single principles-based, five-step model to be applied to all contracts with customers. The five steps are to (i) identify the contracts with the customer, (ii) identify the performance obligations in the contact, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract and (v) recognize revenue when each performance obligation is satisfied. Revenue will be recognized when promised goods or services are transferred to the customer in an amount that reflects the consideration expected in exchange for those goods or services. In July 2015, the FASB agreed to delay the effective date of ASU 2014-09 for one year and to permit early adoption by entities as of the original effective dates. Considering the one year deferral, ASU 2014-09 will be effective for the Company beginning on January 1, 2018 and the standard allows for either full retrospective adoption or modified retrospective adoption. The Company is continuing to evaluate the impact that the adoption of this guidance will have on our financial condition, results of operations and the presentation of our financial statements. Accounting Pronouncements Recently Adopted In November 2015, the FASB issued ASU 2015-17, Balance Sheet Classification of Deferred Taxes , to simplify the presentation of deferred income taxes. The amendments in this update require that deferred tax assets and liabilities be entirely classified as noncurrent within the statement of financial position. The Company early adopted this guidance as of December 31, 2015 and elected retrospective application. |
Contingency 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. There were no material amounts accrued in the accompanying consolidated balance sheets for potential litigation as of December 31, 2015 or 2014. 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. |
Description of Business and S26
Description of Business and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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 2015 2014 2013 Net income attributable to Altra Industrial Motion Corp. $ 35,406 $ 40,167 $ 40,275 Shares used in net income per common share — basic 26,064 26,713 26,766 Dilutive effect of the equity premium on Convertible Notes at the average price of common stock 43 612 — Incremental shares of unvested restricted common stock 2 78 75 Shares used in net income per common share — diluted 26,109 27,403 26,841 Earnings per share: Basic net income attributable to Altra Industrial Motion Corp. $ 1.36 $ 1.50 $ 1.50 Diluted net income attributable to Altra Industrial Motion Corp. $ 1.36 $ 1.47 $ 1.50 |
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 Benefit Pension Plans Cumulative Foreign Currency Translation Total 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 ) Cumulative losses transferred from Lamiflex — — (410 ) (410 ) Net current-period Other Comprehensive Loss (283 ) (989 ) (20,735 ) (22,007 ) Accumulated Other Comprehensive Loss by component, December 31, 2015 $ (140 ) $ (5,807 ) $ (57,885 ) $ (63,832 ) |
New Accounting Pronouncement, Early Adoption Application | Upon adoption, the Company reclassified deferred income taxes as follows: As originally Presented As Reclassified December 31, 2014 Reclassification December 31, 2014 Deferred income taxes - current assets $ 9,240 $ (9,240 ) $ — Deferred income taxes - noncurrent assets 987 1,079 2,066 Deferred income taxes - current liabilities 120 (120 ) — Deferred income taxes - noncurrent liabilities $ 53,226 (8,041 ) $ 45,185 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Inventory Disclosure [Abstract] | |
Summary of Inventories | Inventories consisted of the following: December 31, December 31, Raw materials $ 34,169 $ 36,814 Work in process 12,864 13,641 Finished goods 74,123 82,281 Inventories, net $ 121,156 $ 132,736 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | Property, plant and equipment consisted of the following: December 31, December 31, Land $ 22,403 $ 26,560 Buildings and improvements 46,269 44,791 Machinery and equipment 222,526 220,896 291,198 292,247 Less-Accumulated depreciation (145,785 ) (135,881 ) $ 145,413 $ 156,366 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 and 2014 are as follows: Couplings, Clutches and Brakes Electromagnetic Clutches & Brakes Gearing Total Gross goodwill balance as of January 1, 2014 $ 36,484 $ 29,509 $ 70,156 $ 136,149 Accumulated impairment January 1, 2014 (7,532 ) (3,745 ) (20,533 ) (31,810 ) Purchase price accounting adjustments 4,143 — — 4,143 Impact of changes in foreign currency (4,631 ) (622 ) (1,142 ) (6,395 ) Net goodwill balance December 31, 2014 28,464 25,142 48,481 102,087 Impact of changes in foreign currency and other (3,174 ) (481 ) (1,123 ) (4,778 ) Net goodwill balance December 31, 2015 $ 25,290 $ 24,661 $ 47,358 $ 97,309 |
Gross Carrying Value and Accumulated Amortization of Intangible Assets | The following table provides the gross carrying value and accumulated amortization for each major class of intangible asset: December 31, 2015 December 31, 2014 Cost Accumulated Amortization Net Cost Accumulated Amortization Net Intangible Assets Intangible assets not subject to amortization: Tradenames and trademarks $ 39,625 $ — $ 39,625 $ 41,257 $ — $ 41,257 Intangible assets subject to amortization: Customer relationships and other 118,457 62,013 56,444 125,353 55,880 69,473 Total intangible assets $ 158,082 $ 62,013 $ 96,069 $ 166,610 $ 55,880 $ 110,730 |
Warranty Costs (Tables)
Warranty Costs (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 December 31, 2014 December 31, 2013 Balance at beginning of period $ 7,792 $ 8,739 $ 5,625 Accrued current period warranty costs 4,429 1,537 2,573 Acquired warranty reserves — — 3,420 Payments and adjustments (2,753 ) (2,484 ) (2,879 ) Balance at end of period $ 9,468 $ 7,792 $ 8,739 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 December 31, 2014 December 31, 2013 Domestic $ 33,481 $ 33,065 $ 37,640 Foreign 17,606 30,053 21,696 Total $ 51,087 $ 63,118 $ 59,336 |
Components of Provision (Benefit) for Income Taxes | The components of the provision for income taxes consist of the following: December 31, 2015 December 31, 2014 December 31, 2013 Current: Federal $ 8,866 $ 12,545 $ 8,917 State 467 299 698 Non-US 6,581 7,380 6,072 15,914 20,224 15,687 Deferred: Federal 572 2,673 3,533 State 280 198 378 Non-US (1,022 ) (159 ) (447 ) (170 ) 2,712 3,464 Provision for income taxes $ 15,744 $ 22,936 $ 19,151 |
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, 2015 December 31, 2014 December 31, 2013 Tax at US federal income tax rate $ 17,881 $ 22,092 $ 20,767 State taxes, net of federal income tax effect 578 495 905 Change in tax rate 32 11 (354 ) Foreign reorganization (710 ) 3,786 — Foreign taxes (2,050 ) (2,888 ) (1,210 ) Adjustments to accrued income tax liabilities and uncertain tax positions (18 ) (287 ) (52 ) Valuation allowance 1,218 612 120 Tax credits and incentives (420 ) (666 ) (816 ) Domestic manufacturing deduction (1,051 ) (1,201 ) (839 ) Other 284 982 630 Provision for income taxes $ 15,744 $ 22,936 $ 19,151 |
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, 2015 December 31, 2014 December 31, 2013 Balance at beginning of period $ 434 $ 627 $ 747 Increases related to prior year tax positions — — — Decreases related to prior year tax positions — — (33 ) Increases related to current year tax positions — — — Settlements — (176 ) — Lapse of statute of limitations (25 ) (17 ) (87 ) Balance at end of period $ 409 $ 434 $ 627 |
Significant Components of Deferred Tax Assets and Liabilities | Significant components of the deferred tax assets and liabilities as of December 31, 2015 and 2014 are as follows: 2015 2014 Deferred tax assets: Post-retirement obligations $ 1,123 $ 1,363 Tax credits 1,787 2,194 Expenses not currently deductible 13,222 11,457 Net operating loss carryover 5,629 5,901 Other 771 519 Total deferred tax assets 22,532 21,434 Valuation allowance for deferred tax assets (6,728 ) (5,974 ) Net deferred tax assets 15,804 15,460 Deferred tax liabilities: Property, plant and equipment 17,737 19,002 Intangible assets 19,989 22,735 Basis difference - convertible debt 12,741 11,875 Goodwill 6,321 4,967 Total deferred liabilities 56,788 58,579 Net deferred tax liabilities $ 40,984 $ 43,119 |
Pension and Other Employee Be32
Pension and Other Employee Benefits (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 and 2014 : Pension Benefits Year ended December 31, 2015 Year ended December 31, 2014 Change in benefit obligation: Obligation at beginning of period $ 34,861 $ 32,215 Partial settlement gain — (582 ) Service cost 92 243 Interest cost 1,168 1,353 Partial settlement payments — (2,080 ) Actuarial (gains) losses 45 5,978 Foreign exchange effect (883 ) (909 ) Benefits paid (1,293 ) (1,357 ) Obligation at end of period $ 33,990 $ 34,861 Change in plan assets: Fair value of plan assets, beginning of period $ 24,868 $ 24,190 Partial settlement payments — (2,080 ) Actual return on plan assets (542 ) 3,668 Employer contributions 2,838 447 Plan expenses (209 ) — Benefits paid (1,293 ) (1,357 ) Fair value of plan assets, end of period $ 25,662 $ 24,868 Funded status $ (8,328 ) $ (9,993 ) Amounts recognized in the balance sheet consist of: Non-current liabilities $ (8,328 ) $ (9,993 ) Total $ (8,328 ) $ (9,993 ) |
Discount Rate Used in Computation of Respective Benefit Obligations | The discount rate used in the computation of the respective benefit obligations at December 31, 2015 and 2014 , presented above are as follows: 2015 2014 Pension benefits 3.90 % 3.70 % |
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 December 31, 2015 Year ended December 31, 2014 Year ended December 31, 2013 Service cost $ 92 $ 243 $ 248 Interest cost 1,168 1,353 1,250 Expected return on plan assets (889 ) (1,084 ) (1,080 ) Non-cash impact of partial pension settlement — 475 — Amortization of actuarial losses 385 159 175 Net periodic benefit cost $ 756 $ 1,146 $ 593 |
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 December 31, 2015 Year ended December 31, 2014 Year ended December 31, 2013 Discount rate 3.70 % 4.60 % 3.75 % Expected return on plan assets 3.70 % 4.60 % 5.25 % |
Schedule of Fair Value of Pension Plan Assets | The fair value of the Company’s pension plan assets at December 31, 2015 and 2014 by asset category is as follows: 2015 2014 Asset Category Fixed income (Level 1) U.S. government $ 4,384 $ 3,554 Corporate bonds Investment grade 16,916 17,682 High yield 2,963 3,090 Total fixed income 24,263 24,326 Other (Level 2) 260 286 Cash and cash equivalents (Level 1) 1,139 256 Total assets at fair value $ 25,662 $ 24,868 |
Schedule of Asset Allocations for Funded Retirement Plan | The asset allocations for the Company’s funded retirement plan at December 31, 2015 and 2014 , respectively, and the target allocation for 2015 , by asset category, are as follows: Allocation Percentage of Plan Assets at Year-End 2015 Actual 2015 Target 2014 Actual Asset Category U.S. Government Bonds 17 % 0% - 50% 14 % Investment Grade Bonds 68 % 0% - 100% 72 % High Yield Bonds 11 % 0% - 25% 13 % Cash 4 % 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) 2016 $ 1,480 2017 1,504 2018 1,582 2019 1,675 2020 1,664 Thereafter $ 8,202 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Outstanding Debt Obligations | December 31, December 31, 2015 2014 Debt: Revolving Credit Facility $ 145,152 $ 40,000 Convertible Notes 85,000 85,000 Term Loans — 133,697 Mortgages 10,333 3,905 Equipment Loan 2,832 5,430 Capital leases 500 476 Total debt 243,817 268,508 Less: debt discount, net of accretion (9,062 ) (12,756 ) Total debt, net of unaccreted discount 234,755 255,752 Less current portion of long-term debt (3,187 ) (15,176 ) Total long-term debt $ 231,568 $ 240,576 |
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, 2015 : December 31, 2015 December 31, 2014 Principal amount of debt $ 85,000 $ 85,000 Unamortized discount 9,062 12,756 Carrying value of debt $ 75,938 $ 72,244 |
Interest Expense Associated with Convertible Notes | Interest expense associated with the Convertible Notes consisted of the following: December 31, 2015 December 31, 2014 December 31, 2013 Contractual coupon rate of interest $ 2,338 $ 2,338 $ 2,338 Accretion of Convertible Notes discount and amortization of deferred financing costs 4,048 3,760 3,494 Interest expense for the Convertible Notes $ 6,386 $ 6,098 $ 5,832 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 159,178 $ 28.53 Shares granted 133,893 $ 26.95 Shares for which restrictions lapsed (132,061 ) $ 26.60 Restricted shares unvested December 31, 2015 161,010 $ 28.62 |
Restructuring, Asset Impairme35
Restructuring, Asset Impairment, and Transition Expenses (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Restructuring and Related Activities [Abstract] | |
Summary of Total Restructuring Expense | The following table details restructuring charges incurred by segment for the periods presented: 2015 2014 2013 Couplings, Clutches & Brakes $ 2,527 $ 444 $ 270 Electromagnetic Clutches & Brakes 1,600 614 337 Gearing 3,080 603 504 Corporate 7 106 — Total $ 7,214 $ 1,767 $ 1,111 |
Reconciliation of Accrued Restructuring Costs | The following is a reconciliation of the accrued restructuring costs between January 1, 2013 and December 31, 2015: All Plans 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 Restructuring expense incurred 7,214 Non-cash loss on impairment of fixed assets (2,003 ) Cash payments (3,389 ) Balance at December 31, 2015 $ 2,211 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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 2016 $ 7,522 $ 148 2017 5,129 148 2018 3,004 148 2019 2,282 72 2020 1,428 8 Thereafter 4,650 — Total lease obligations $ 24,015 $ 524 Less amounts representing interest (24 ) Present value of minimum capital lease obligations $ 500 |
Segment and Geographic Inform37
Segment and Geographic Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 2014 2013 Net Sales: Couplings, Clutches & Brakes $ 342,299 $ 396,089 $ 301,989 Electromagnetic Clutches & Brakes 219,676 218,550 213,148 Gearing 192,252 212,628 214,152 Inter-segment eliminations (7,575 ) (7,450 ) (7,071 ) Net sales $ 746,652 $ 819,817 $ 722,218 Income from operations: Segment earnings: Couplings, Clutches & Brakes $ 38,750 $ 49,299 $ 44,658 Electromagnetic Clutches & Brakes 21,634 22,014 20,878 Gearing 21,094 22,698 21,516 Restructuring (7,214 ) (1,767 ) (1,111 ) Corporate expenses (1) (10,050 ) (17,135 ) (14,362 ) Income from operations 64,214 75,109 71,579 Other non-operating (income) expense: Interest expense, net 12,164 11,994 10,586 Other non-operating (income) expense, net 963 (3 ) 1,657 13,127 11,991 12,243 Income before income taxes 51,087 63,118 59,336 Provision for income taxes 15,744 22,936 19,151 Net income $ 35,343 $ 40,182 $ 40,185 (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. |
Reconciliation of Assets from Segment to Consolidated | Years Ended December 31, 2015 2014 2013 Depreciation and amortization: Couplings, Clutches & Brakes $ 15,897 $ 17,196 $ 13,220 Electromagnetic Clutches & Brakes 4,565 5,009 4,972 Gearing 6,617 7,447 7,539 Corporate 3,042 2,485 2,193 Total depreciation and amortization $ 30,121 $ 32,137 $ 27,924 As of the Years Ended December 31, 2015 2014 Total assets: Couplings, Clutches & Brakes $ 312,117 $ 356,272 Electromagnetic Clutches & Brakes 125,887 131,015 Gearing 150,860 155,660 Corporate (2) 43,468 33,455 Total assets $ 632,332 $ 676,402 (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 and Property, Plant and Equipment | Geographic Information Net Sales Property, Plant and Equipment Year Ended December 31, 2015 December 31, 2014 December 31, 2013 December 31, 2015 December 31, 2014 North America $ 452,172 $ 488,523 $ 454,115 $ 84,960 $ 90,279 Europe 218,857 255,049 216,636 52,949 51,708 Asia and the rest of the world 75,623 76,245 51,467 7,504 14,379 Total $ 746,652 $ 819,817 $ 722,218 $ 145,413 $ 156,366 |
Unaudited Quarterly Results o38
Unaudited Quarterly Results of Operations (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Results of Operations | Unaudited Quarterly Results of Operations: Year ended December 31, 2015 Fourth Quarter Third Quarter Second Quarter First Quarter Net Sales $ 173,628 $ 183,053 $ 196,610 $ 193,361 Gross Profit 54,204 55,800 59,986 58,473 Net income attributable to Altra Industrial Motion Corp. (1) 6,108 10,221 9,679 9,398 Earnings per share — Basic attributable to Altra Industrial Motion Corp. Net income $ 0.23 $ 0.39 $ 0.37 $ 0.36 Earnings per share — Diluted attributable to Altra Industrial Motion Corp. Net income attributable to Altra Industrial Motion Corp. $ 0.23 $ 0.39 $ 0.37 $ 0.36 (1) Includes restructuring costs by quarter $ 2,220 $ 651 $ 2,587 $ 1,756 Year ended December 31, 2014 Fourth Quarter Third Quarter Second Quarter First 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. (1) 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 attributable to Altra Industrial Motion Corp. $ 0.34 $ 0.25 $ 0.46 $ 0.41 (1) Includes restructuring costs by quarter $ 124 $ 1,643 $ — $ — |
Description of Business and S39
Description of Business and Summary of Significant Accounting Policies - Additional Information (Detail) | 1 Months Ended | 12 Months Ended | ||
Mar. 31, 2011USD ($) | Dec. 31, 2015USD ($)countryproductreporting_unitshares | Dec. 31, 2014USD ($)shares | Dec. 31, 2013USD ($)shares | |
Organization And Nature Of Business [Line Items] | ||||
Minimum number of product lines | product | 42 | |||
Production facilities in number of countries | country | 12 | |||
Anti-dilutive shares | shares | 3,209,600 | 2,571,130 | 3,137,351 | |
Debt | $ 243,817,000 | $ 268,508,000 | ||
Impairment of goodwill | $ 0 | 0 | ||
Minimum number of entity's reporting units where the estimated fair value could be affected by changes to discount rate and the forecasted profitability | reporting_unit | 1 | |||
Impairment of long-lived assets | $ 0 | 0 | ||
Net carrying value of debt issuance cost | 2,800,000 | 3,200,000 | ||
Advertising costs | $ 3,100,000 | 2,900,000 | $ 2,500,000 | |
Tax benefit sustainable | greater than 50% | |||
Minimum | ||||
Organization And Nature Of Business [Line Items] | ||||
Amortization period | 8 years | |||
Royalty rate indication based on return as a percentage of revenue | 1.00% | |||
Maximum | ||||
Organization And Nature Of Business [Line Items] | ||||
Amortization period | 17 years | |||
Royalty rate indication based on return as a percentage of revenue | 1.25% | |||
Level 1 | Money market funds | ||||
Organization And Nature Of Business [Line Items] | ||||
Cash and cash equivalents | $ 300,000 | 300,000 | ||
Convertible Notes | ||||
Organization And Nature Of Business [Line Items] | ||||
Coupon interest rate | 2.75% | 2.75% | ||
Carrying amount of financial instruments | $ 85,000,000 | $ 85,000,000 | 85,000,000 | |
Net carrying value of debt issuance cost | $ 3,700,000 | |||
Convertible Notes | Level 2 | ||||
Organization And Nature Of Business [Line Items] | ||||
Estimated fair value of financial instruments | 91,700,000 | 99,000,000 | ||
Revolving credit facility | Line of credit | ||||
Organization And Nature Of Business [Line Items] | ||||
Debt | 145,152,000 | $ 40,000,000 | ||
Building | Electromagnetic Clutches and Brakes | ||||
Organization And Nature Of Business [Line Items] | ||||
Impairment of assets | 1,100,000 | |||
Building | Couplings, Clutches and Brakes | ||||
Organization And Nature Of Business [Line Items] | ||||
Impairment of assets | $ 900,000 |
Description of Business and S40
Description of Business and Summary of Significant Accounting Policies - Reconciliation of Basic to Diluted Net Income Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||
Net income attributable to Altra Industrial Motion Corp. (1) | $ 6,108 | [1] | $ 10,221 | [1] | $ 9,679 | [1] | $ 9,398 | [1] | $ 9,059 | [1] | $ 6,946 | [1] | $ 12,797 | [1] | $ 11,365 | [1] | $ 35,406 | $ 40,167 | $ 40,275 |
Shares used in net income per common share - basic (in shares) | 26,064 | 26,713 | 26,766 | ||||||||||||||||
Dilutive effect of the equity premium on Convertible Notes at the average price of common stock (in shares) | 43 | 612 | 0 | ||||||||||||||||
Incremental shares of unvested restricted common stock (in shares) | 2 | 78 | 75 | ||||||||||||||||
Shares used in net income per common share - diluted (in shares) | 26,109 | 27,403 | 26,841 | ||||||||||||||||
Earnings per share: | |||||||||||||||||||
Basic net income attributable to Altra Industrial Motion Corp. (in usd per share) | $ 0.23 | $ 0.39 | $ 0.37 | $ 0.36 | $ 0.34 | $ 0.26 | $ 0.48 | $ 0.43 | $ 1.36 | $ 1.50 | $ 1.50 | ||||||||
Diluted net income attributable to Altra Industrial Motion Corp. (in usd per share) | $ 0.23 | $ 0.39 | $ 0.37 | $ 0.36 | $ 0.34 | $ 0.25 | $ 0.46 | $ 0.41 | $ 1.36 | $ 1.47 | $ 1.50 | ||||||||
[1] | Includes restructuring costs by quarter. |
Description of Business and S41
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, 2015 | |
Buildings and improvements | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 15 years |
Buildings and improvements | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 45 years |
Machinery and equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 2 years |
Machinery and equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 15 years |
Description of Business and S42
Description of Business and Summary of Significant Accounting Policies - Changes in Accumulated Other Comprehensive Loss by Component (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Accumulated Other Comprehensive Loss, Beginning Balance | $ (41,415) | $ (18,396) | $ (23,403) |
Cumulative losses transferred from Lamiflex | (410) | ||
Net current-period Other Comprehensive Loss | (22,007) | (23,019) | 5,007 |
Accumulated Other Comprehensive Loss, Ending Balance | (63,832) | (41,415) | (18,396) |
Interest Rate Swap | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Accumulated Other Comprehensive Loss, Beginning Balance | 143 | 135 | 0 |
Cumulative losses transferred from Lamiflex | 0 | ||
Net current-period Other Comprehensive Loss | (283) | 8 | 135 |
Accumulated Other Comprehensive Loss, Ending Balance | (140) | 143 | 135 |
Defined Benefit Pension Plans | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Accumulated Other Comprehensive Loss, Beginning Balance | (4,818) | (3,133) | (4,607) |
Cumulative losses transferred from Lamiflex | 0 | ||
Net current-period Other Comprehensive Loss | (989) | (1,685) | 1,474 |
Accumulated Other Comprehensive Loss, Ending Balance | (5,807) | (4,818) | (3,133) |
Cumulative Foreign Currency Translation | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Accumulated Other Comprehensive Loss, Beginning Balance | (36,740) | (15,398) | (18,796) |
Cumulative losses transferred from Lamiflex | (410) | ||
Net current-period Other Comprehensive Loss | (20,735) | (21,342) | 3,398 |
Accumulated Other Comprehensive Loss, Ending Balance | $ (57,885) | $ (36,740) | $ (15,398) |
Description of Business and S43
Description of Business and Summary of Significant Accounting Policies Description of Business and Summary of Significant Accounting Policies - Accounting Pronouncements Recently Adopted (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Organization And Nature Of Business [Line Items] | ||
Deferred income taxes - noncurrent assets | $ 3,201 | $ 2,066 |
Deferred income taxes - noncurrent liabilities | $ 44,185 | 45,185 |
Adjustments for New Accounting Principle, Early Adoption | ||
Organization And Nature Of Business [Line Items] | ||
Deferred income taxes - current assets | 0 | |
Deferred income taxes - noncurrent assets | 2,066 | |
Deferred income taxes - current liabilities | 0 | |
Deferred income taxes - noncurrent liabilities | 45,185 | |
Adjustments for New Accounting Principle, Early Adoption | As originally Presented | ||
Organization And Nature Of Business [Line Items] | ||
Deferred income taxes - current assets | 9,240 | |
Deferred income taxes - noncurrent assets | 987 | |
Deferred income taxes - current liabilities | 120 | |
Deferred income taxes - noncurrent liabilities | 53,226 | |
Adjustments for New Accounting Principle, Early Adoption | Reclassification | ||
Organization And Nature Of Business [Line Items] | ||
Deferred income taxes - current assets | (9,240) | |
Deferred income taxes - noncurrent assets | 1,079 | |
Deferred income taxes - current liabilities | (120) | |
Deferred income taxes - noncurrent liabilities | $ (8,041) |
Inventories - Summary of Invent
Inventories - Summary of Inventories (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 34,169 | $ 36,814 |
Work in process | 12,864 | 13,641 |
Finished goods | 74,123 | 82,281 |
Inventories, net | $ 121,156 | $ 132,736 |
Property, Plant and Equipment -
Property, Plant and Equipment - Schedule of Property, Plant and Equipment (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 291,198 | $ 292,247 | |
Less-Accumulated depreciation | (145,785) | (135,881) | |
Property, plant and equipment, net | 145,413 | 156,366 | |
Assets held for sale | 4,597 | 0 | |
Depreciation expense | 21,559 | 23,118 | $ 21,419 |
Building | Electromagnetic Clutches & Brakes | |||
Property, Plant and Equipment [Line Items] | |||
Impairment of assets | 1,100 | ||
Building | Couplings, Clutches and Brakes | |||
Property, Plant and Equipment [Line Items] | |||
Impairment of assets | 900 | ||
Assets held for sale | 4,597 | ||
Land | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 22,403 | 26,560 | |
Buildings and improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 46,269 | 44,791 | |
Machinery and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 222,526 | $ 220,896 |
Goodwill and Intangible Asset46
Goodwill and Intangible Assets - Changes in Goodwill (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Goodwill [Roll Forward] | ||
Gross goodwill balance as of January 1 | $ 136,149 | |
Accumulated impairment, January 1 | (31,810) | |
Purchase price accounting adjustments | 4,143 | |
Impact of changes in foreign currency and other | $ (4,778) | (6,395) |
Net goodwill balance December 31 | 97,309 | 102,087 |
Operating Segments | Couplings, Clutches and Brakes | ||
Goodwill [Roll Forward] | ||
Gross goodwill balance as of January 1 | 36,484 | |
Accumulated impairment, January 1 | (7,532) | |
Purchase price accounting adjustments | 4,143 | |
Impact of changes in foreign currency and other | (3,174) | (4,631) |
Net goodwill balance December 31 | 25,290 | 28,464 |
Operating Segments | Electromagnetic Clutches & Brakes | ||
Goodwill [Roll Forward] | ||
Gross goodwill balance as of January 1 | 29,509 | |
Accumulated impairment, January 1 | (3,745) | |
Purchase price accounting adjustments | 0 | |
Impact of changes in foreign currency and other | (481) | (622) |
Net goodwill balance December 31 | 24,661 | 25,142 |
Operating Segments | Gearing | ||
Goodwill [Roll Forward] | ||
Gross goodwill balance as of January 1 | 70,156 | |
Accumulated impairment, January 1 | (20,533) | |
Purchase price accounting adjustments | 0 | |
Impact of changes in foreign currency and other | (1,123) | (1,142) |
Net goodwill balance December 31 | $ 47,358 | $ 48,481 |
Goodwill and Intangible Asset47
Goodwill and Intangible Assets - Intangibles and Related Accumulated Amortization (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Schedule Of Finite And Indefinite Lived Intangible Assets [Line Items] | ||
Total intangible assets, Cost | $ 158,082 | $ 166,610 |
Total intangible assets, Accumulated Amortization | 62,013 | 55,880 |
Total intangible assets, Net | 96,069 | 110,730 |
Customer relationships and other | ||
Schedule Of Finite And Indefinite Lived Intangible Assets [Line Items] | ||
Intangible assets subject to amortization, Cost | 118,457 | 125,353 |
Total intangible assets, Accumulated Amortization | 62,013 | 55,880 |
Finite-Lived Intangible Assets, Net | 56,444 | 69,473 |
Tradenames and trademarks | ||
Schedule Of Finite And Indefinite Lived Intangible Assets [Line Items] | ||
Intangible assets not subject to amortization, Cost | $ 39,625 | $ 41,257 |
Goodwill and Intangible Asset48
Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Goodwill And Intangible Assets [Line Items] | |||
Amortization expense | $ 8,562 | $ 9,019 | $ 6,505 |
Weighted average estimated useful life of intangible assets | 11 years | ||
Estimated amortization expense for intangible assets | |||
Goodwill And Intangible Assets [Line Items] | |||
Year 2,016 | $ 8,300 | ||
Year 2,017 | 8,300 | ||
Year 2,018 | 8,300 | ||
Year 2,019 | 8,300 | ||
Year 2,020 | 8,300 | ||
Thereafter | $ 14,900 | ||
Minimum | |||
Goodwill And Intangible Assets [Line Items] | |||
Useful lives of intangible assets | 8 years | ||
Maximum | |||
Goodwill And Intangible Assets [Line Items] | |||
Useful lives of intangible assets | 17 years |
Warranty Costs - Additional Inf
Warranty Costs - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2015 | |
Minimum | |
Guarantor Obligations [Line Items] | |
Product warranty period | 3 months |
Maximum | |
Guarantor Obligations [Line Items] | |
Product warranty period | 2 years |
Warranty Costs - Changes in Car
Warranty Costs - Changes in Carrying Amount of Accrued Product Warranty Costs (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Movement in Extended Product Warranty Accrual [Roll Forward] | |||
Balance at beginning of period | $ 7,792 | $ 8,739 | $ 5,625 |
Accrued current period warranty costs | 4,429 | 1,537 | 2,573 |
Acquired warranty reserves | 0 | 0 | 3,420 |
Payments and adjustments | (2,753) | (2,484) | (2,879) |
Balance at end of period | $ 9,468 | $ 7,792 | $ 8,739 |
Income Taxes - Income Before In
Income Taxes - Income Before Income Taxes by Domestic and Foreign Locations (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ 33,481 | $ 33,065 | $ 37,640 |
Foreign | 17,606 | 30,053 | 21,696 |
Income before income taxes | $ 51,087 | $ 63,118 | $ 59,336 |
Income Taxes - Components of Pr
Income Taxes - Components of Provision (Benefit) for Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Current: | |||
Federal | $ 8,866 | $ 12,545 | $ 8,917 |
State | 467 | 299 | 698 |
Non-US | 6,581 | 7,380 | 6,072 |
Current provision for income taxes | 15,914 | 20,224 | 15,687 |
Deferred: | |||
Federal | 572 | 2,673 | 3,533 |
State | 280 | 198 | 378 |
Non-US | (1,022) | (159) | (447) |
Deferred provision for income taxes | (170) | 2,712 | 3,464 |
Provision for income taxes | $ 15,744 | $ 22,936 | $ 19,151 |
Income Taxes - Reconciliation f
Income Taxes - Reconciliation from Tax at U.S. Federal Statutory Rate to Company's Provision (Benefit) for Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
Tax at US federal income tax rate | $ 17,881 | $ 22,092 | $ 20,767 |
State taxes, net of federal income tax effect | 578 | 495 | 905 |
Change in tax rate | 32 | 11 | (354) |
Foreign reorganization | (710) | 3,786 | 0 |
Foreign taxes | (2,050) | (2,888) | (1,210) |
Adjustments to accrued income tax liabilities and uncertain tax positions | (18) | (287) | (52) |
Valuation allowance | 1,218 | 612 | 120 |
Tax credits and incentives | (420) | (666) | (816) |
Domestic manufacturing deduction | (1,051) | (1,201) | (839) |
Other | 284 | 982 | 630 |
Provision for income taxes | $ 15,744 | $ 22,936 | $ 19,151 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Gross Amount of Unrecognized Tax Benefits Excluding Accrued Interest and Penalties (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance at beginning of period | $ 434 | $ 627 | $ 747 |
Increases related to prior year tax positions | 0 | 0 | 0 |
Decreases related to prior year tax positions | 0 | 0 | (33) |
Increases related to current year tax positions | 0 | 0 | 0 |
Settlements | 0 | (176) | 0 |
Lapse of statute of limitations | (25) | (17) | (87) |
Balance at end of period | $ 409 | $ 434 | $ 627 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Unrecognized Tax Benefits [Line Items] | |||
Accrued interest and penalties | $ 100 | $ 100 | $ 100 |
Offset of accrued interest and penalties due to lapse of statute of limitations | 300 | ||
Total gross amount of interest and penalties | 200 | 200 | 400 |
Net operating loss carry forwards | 19,700 | ||
Federal and state tax credits | 420 | $ 666 | $ 816 |
Undistributed earnings of international subsidiaries | 75,600 | ||
Non U.S. | |||
Unrecognized Tax Benefits [Line Items] | |||
Net operating loss carry forwards | 21,600 | ||
Federal and state tax credits | |||
Unrecognized Tax Benefits [Line Items] | |||
Federal and state tax credits | $ 1,900 | ||
Minimum | |||
Unrecognized Tax Benefits [Line Items] | |||
Net operating loss carryforward, expiration year | 2,019 | ||
Minimum | Federal and state tax credits | |||
Unrecognized Tax Benefits [Line Items] | |||
Net operating loss carryforward, expiration year | 2,016 | ||
Maximum | |||
Unrecognized Tax Benefits [Line Items] | |||
Net operating loss carryforward, expiration year | 2,032 | ||
Maximum | Federal and state tax credits | |||
Unrecognized Tax Benefits [Line Items] | |||
Net operating loss carryforward, expiration year | 2,029 |
Income Taxes - Significant Comp
Income Taxes - Significant Components of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred tax assets: | ||
Post-retirement obligations | $ 1,123 | $ 1,363 |
Tax credits | 1,787 | 2,194 |
Expenses not currently deductible | 13,222 | 11,457 |
Net operating loss carryover | 5,629 | 5,901 |
Other | 771 | 519 |
Total deferred tax assets | 22,532 | 21,434 |
Valuation allowance for deferred tax assets | (6,728) | (5,974) |
Net deferred tax assets | 15,804 | 15,460 |
Deferred tax liabilities: | ||
Property, plant and equipment | 17,737 | 19,002 |
Intangible assets | 19,989 | 22,735 |
Basis difference - convertible debt | 12,741 | 11,875 |
Goodwill | 6,321 | 4,967 |
Total deferred liabilities | 56,788 | 58,579 |
Net deferred tax liabilities | $ 40,984 | $ 43,119 |
Pension and Other Employee Be57
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 ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Employer contributions | $ 4,000 | $ 4,000 | $ 3,700 |
Amounts recognized in the balance sheet consist of: | |||
Total | (8,328) | (9,993) | |
Pension benefits | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Obligation at beginning of period | 34,861 | 32,215 | |
Partial settlement gain | 0 | (582) | |
Service cost | 92 | 243 | 248 |
Interest cost | 1,168 | 1,353 | 1,250 |
Partial settlement payments | 0 | (2,080) | |
Actuarial (gains) losses | 45 | 5,978 | |
Foreign exchange effect | (883) | (909) | |
Benefits paid | (1,293) | (1,357) | |
Obligation at end of period | 33,990 | 34,861 | 32,215 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets, beginning of period | 24,868 | 24,190 | |
Partial settlement payments | 0 | (2,080) | |
Actual return on plan assets | (542) | 3,668 | |
Employer contributions | 2,838 | 447 | |
Plan expenses | (209) | 0 | |
Benefits paid | (1,293) | (1,357) | |
Fair value of plan assets, end of period | 25,662 | 24,868 | $ 24,190 |
Funded status | (8,328) | (9,993) | |
Amounts recognized in the balance sheet consist of: | |||
Non-current liabilities | (8,328) | (9,993) | |
Total | $ (8,328) | $ (9,993) |
Pension and Other Employee Be58
Pension and Other Employee Benefits - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Defined Benefit Pension Plan With Accumulated Benefit Obligation In Excess Of Fair Value Of Plan Assets [Line Items] | |||
Accumulated benefit obligation | $ 34,000,000 | $ 34,900,000 | |
Non- U.S. pension liabilities recognized | 7,800,000 | 8,300,000 | |
Accumulated other comprehensive loss, net of tax | 5,800,000 | 4,800,000 | |
Accumulated other comprehensive loss, tax | $ 2,100,000 | 1,700,000 | |
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 eligible compensation contributed by each employee | ||
Defined benefit plan, supplementary contributions by employer | $ 4,000,000 | $ 4,000,000 | $ 3,700,000 |
U.S. Pension Plan 2015 | |||
Defined Benefit Pension Plan With Accumulated Benefit Obligation In Excess Of Fair Value Of Plan Assets [Line Items] | |||
Minimum cash contribution to pension plan | 2,700,000 | ||
U.S. Pension Plan 2016 | |||
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 | |||
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 | |||
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 2019 | |||
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 2020 | |||
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 Be59
Pension and Other Employee Benefits - Discount Rate Used in Computation of Respective Benefit Obligations (Detail) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Pension benefits | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Discount rate used in benefit obligation | 3.90% | 3.70% |
Pension and Other Employee Be60
Pension and Other Employee Benefits - Components of Net Periodic Benefit Cost (Detail) - Pension benefits - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 92 | $ 243 | $ 248 |
Interest cost | 1,168 | 1,353 | 1,250 |
Expected return on plan assets | (889) | (1,084) | (1,080) |
Non-cash impact of partial pension settlement | 0 | 475 | 0 |
Amortization of actuarial losses | 385 | 159 | 175 |
Net periodic benefit cost | $ 756 | $ 1,146 | $ 593 |
Pension and Other Employee Be61
Pension and Other Employee Benefits - Economic Assumptions Used in Computation of Respective Net Periodic Benefit Cost (Detail) - Pension benefits | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Economic Assumptions Used In Measuring Of Fair Value Securitized Loans [Line Items] | |||
Discount rate | 3.70% | 4.60% | 3.75% |
Expected return on plan assets | 3.70% | 4.60% | 5.25% |
Pension and Other Employee Be62
Pension and Other Employee Benefits - Schedule Fair Value of Pension Plan Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Defined Benefit Pension Plan With Accumulated Benefit Obligation In Excess Of Fair Value Of Plan Assets [Line Items] | ||
Total assets at fair value | $ 25,662 | $ 24,868 |
Level 1 | ||
Defined Benefit Pension Plan With Accumulated Benefit Obligation In Excess Of Fair Value Of Plan Assets [Line Items] | ||
Total fixed income | 24,263 | 24,326 |
U.S. government | Level 1 | ||
Defined Benefit Pension Plan With Accumulated Benefit Obligation In Excess Of Fair Value Of Plan Assets [Line Items] | ||
Total fixed income | 4,384 | 3,554 |
Investment grade | Level 1 | ||
Defined Benefit Pension Plan With Accumulated Benefit Obligation In Excess Of Fair Value Of Plan Assets [Line Items] | ||
Total fixed income | 16,916 | 17,682 |
High yield | Level 1 | ||
Defined Benefit Pension Plan With Accumulated Benefit Obligation In Excess Of Fair Value Of Plan Assets [Line Items] | ||
Total fixed income | 2,963 | 3,090 |
Other | Level 2 | ||
Defined Benefit Pension Plan With Accumulated Benefit Obligation In Excess Of Fair Value Of Plan Assets [Line Items] | ||
Total assets at fair value | 260 | 286 |
Cash and cash equivalents | Level 1 | ||
Defined Benefit Pension Plan With Accumulated Benefit Obligation In Excess Of Fair Value Of Plan Assets [Line Items] | ||
Total assets at fair value | $ 1,139 | $ 256 |
Pension and Other Employee Be63
Pension and Other Employee Benefits - Schedule of Asset Allocations for Funded Retirement Plan (Detail) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
U.S. Government Bonds | ||
Defined Benefit Pension Plan With Accumulated Benefit Obligation In Excess Of Fair Value Of Plan Assets [Line Items] | ||
Actual | 17.00% | 14.00% |
Target, Minimum | 0.00% | |
Target, Maximum | 50.00% | |
Investment Grade Bonds | ||
Defined Benefit Pension Plan With Accumulated Benefit Obligation In Excess Of Fair Value Of Plan Assets [Line Items] | ||
Actual | 68.00% | 72.00% |
Target, Minimum | 0.00% | |
Target, Maximum | 100.00% | |
High Yield Bonds | ||
Defined Benefit Pension Plan With Accumulated Benefit Obligation In Excess Of Fair Value Of Plan Assets [Line Items] | ||
Actual | 11.00% | 13.00% |
Target, Minimum | 0.00% | |
Target, Maximum | 25.00% | |
Cash | ||
Defined Benefit Pension Plan With Accumulated Benefit Obligation In Excess Of Fair Value Of Plan Assets [Line Items] | ||
Actual | 4.00% | 1.00% |
Target, Minimum | 0.00% | |
Target, Maximum | 5.00% |
Pension and Other Employee Be64
Pension and Other Employee Benefits - Summary of Amounts of Expected Benefit Payments (Detail) - Pension benefits $ in Thousands | Dec. 31, 2015USD ($) |
Defined Benefit Plan, Expected Future Benefit Payments, Maturity [Line Items] | |
2,016 | $ 1,480 |
2,017 | 1,504 |
2,018 | 1,582 |
2,019 | 1,675 |
2,020 | 1,664 |
Thereafter | $ 8,202 |
Long-Term Debt - Outstanding De
Long-Term Debt - Outstanding Debt Obligations (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Debt Instrument [Line Items] | ||
Total debt | $ 243,817 | $ 268,508 |
Less: debt discount, net of accretion | (9,062) | (12,756) |
Total debt, net of unaccreted discount | 234,755 | 255,752 |
Less current portion of long-term debt | (3,187) | (15,176) |
Total long-term debt | 231,568 | 240,576 |
Line of credit | Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Total debt | 145,152 | 40,000 |
Line of credit | Term Loans | ||
Debt Instrument [Line Items] | ||
Total debt | 0 | 133,697 |
Convertible Notes | ||
Debt Instrument [Line Items] | ||
Total debt | 85,000 | 85,000 |
Mortgages | ||
Debt Instrument [Line Items] | ||
Total debt | 10,333 | 3,905 |
Equipment Loan | ||
Debt Instrument [Line Items] | ||
Total debt | 2,832 | 5,430 |
Capital leases | ||
Debt Instrument [Line Items] | ||
Total debt | $ 500 | $ 476 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Detail) $ / shares in Units, ¥ in Millions | Dec. 31, 2015USD ($)$ / shares | Oct. 22, 2015USD ($) | Dec. 06, 2013USD ($)instrument | Aug. 31, 2014USD ($) | Aug. 31, 2014EUR (€) | Mar. 31, 2011USD ($)$ / sharesshares | Dec. 31, 2015USD ($)$ / shares | Sep. 30, 2015USD ($) | Dec. 31, 2015USD ($)$ / shares | Dec. 31, 2014USD ($) | Dec. 31, 2013 | Dec. 31, 2015CNY (¥) | Dec. 31, 2015EUR (€) | Sep. 30, 2015EUR (€) | Dec. 31, 2014EUR (€) | Aug. 31, 2014EUR (€) | Dec. 06, 2013EUR (€) | Nov. 20, 2012 |
Debt Instrument [Line Items] | ||||||||||||||||||
Percentage of capital stock not included in collateral | 65.00% | |||||||||||||||||
Letters of credit outstanding | $ 7,000,000 | $ 7,000,000 | $ 7,000,000 | $ 11,000,000 | ||||||||||||||
Debt issuance cost | 2,800,000 | 3,200,000 | ||||||||||||||||
Borrowings under overdraft agreements | 0 | 0 | 0 | 0 | ||||||||||||||
Line of credit | Revolving credit facility | Prior revolving credit facility | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Maximum amount available under credit facility agreement | $ 200,000,000 | |||||||||||||||||
Balance of line of credit | 40,000,000 | |||||||||||||||||
Debt instrument, maturity date | Dec. 6, 2018 | |||||||||||||||||
Line of credit | Revolving credit facility | 2015 Credit Agreement | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Maximum amount available under credit facility agreement | $ 350,000,000 | |||||||||||||||||
Balance of line of credit | 145,200,000 | 145,200,000 | 145,200,000 | |||||||||||||||
Debt instrument, maturity date | Oct. 22, 2020 | |||||||||||||||||
Possible expansion amount of the credit facility | $ 150,000,000 | |||||||||||||||||
Amount available under credit facility | 163,700,000 | 163,700,000 | 163,700,000 | |||||||||||||||
Amount available under facility in the event of an acquisition | $ 197,800,000 | 197,800,000 | 197,800,000 | |||||||||||||||
Line of credit | Revolving credit facility | 2015 Credit Agreement | Eurodollar Loan | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Applicable margins for loans | 1.50% | |||||||||||||||||
Line of credit | Revolving credit facility | 2015 Credit Agreement | Minimum | Eurodollar Loan | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Applicable margins for loans | 1.25% | |||||||||||||||||
Line of credit | Revolving credit facility | 2015 Credit Agreement | Minimum | ABR Based Loans | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Applicable margins for loans | 0.25% | |||||||||||||||||
Line of credit | Revolving credit facility | 2015 Credit Agreement | Maximum | Eurodollar Loan | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Applicable margins for loans | 2.00% | |||||||||||||||||
Line of credit | Revolving credit facility | 2015 Credit Agreement | Maximum | ABR Based Loans | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Applicable margins for loans | 1.00% | |||||||||||||||||
Line of credit | Term Loans | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Balance of line of credit | $ 94,000,000 | |||||||||||||||||
Line of credit | Term Loans | Term Loans | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Number of debt instruments | instrument | 2 | |||||||||||||||||
Amount of financing costs written off | $ 500,000 | |||||||||||||||||
Line of credit | Additional Term Loan | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Maximum amount available under credit facility agreement | € | € 50,000,000 | |||||||||||||||||
Domestic line of credit | Revolving credit facility | 2015 Credit Agreement | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Balance of line of credit | $ 118,200,000 | 118,200,000 | $ 118,200,000 | |||||||||||||||
Interest rate | 1.92% | |||||||||||||||||
Foreign line of credit | Revolving credit facility | 2015 Credit Agreement | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Balance of line of credit | $ 26,900,000 | $ 26,900,000 | $ 26,900,000 | |||||||||||||||
Interest rate | 1.50% | |||||||||||||||||
Convertible Notes | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Debt instrument, maturity date | Mar. 1, 2031 | |||||||||||||||||
Coupon interest rate | 2.75% | 2.75% | 2.75% | 2.75% | 2.75% | 2.75% | ||||||||||||
Proceeds from the offering | $ 81,300,000 | |||||||||||||||||
Adjustment of shares (in shares) | shares | 36.0985 | |||||||||||||||||
Principal amount of notes | $ 1,000 | |||||||||||||||||
Conversion price per share (in usd per share) | $ / shares | $ 26.13 | $ 26.13 | $ 26.13 | |||||||||||||||
Percentage of sale price of common stock | 130.00% | 130.00% | ||||||||||||||||
Consecutive trading 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 | Mar. 1, 2018 | |||||||||||||||||
Convertible notes redeemable period two | Mar. 1, 2021 | |||||||||||||||||
Convertible notes redeemable period three | Mar. 1, 2026 | |||||||||||||||||
Conversion price redemption exceed | 130.00% | |||||||||||||||||
Total debt | $ 85,000,000 | $ 85,000,000 | $ 85,000,000 | $ 85,000,000 | $ 85,000,000 | |||||||||||||
Debt component in note payable | 60,500,000 | |||||||||||||||||
Equity component in note payable | $ 24,500,000 | |||||||||||||||||
Discount rate for debt component | 8.25% | |||||||||||||||||
Debt issuance cost | $ 3,700,000 | |||||||||||||||||
Adjustments to additional paid-in capital of convertible debt | 1,000,000 | |||||||||||||||||
Debt issuance cost, amortized | $ 2,700,000 | |||||||||||||||||
Conversion price (in usd per share) | $ / shares | $ 26.13 | $ 26.13 | $ 26.13 | |||||||||||||||
Effective interest rate | 8.50% | 8.50% | 8.50% | 2.75% | 8.50% | 8.50% | 2.75% | |||||||||||
Convertible Notes | Initial conversion price | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Conversion price per share (in usd per share) | $ / shares | $ 27.70 | |||||||||||||||||
Convertible Notes | Minimum | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Consecutive trading days | 20 days | 20 days | ||||||||||||||||
Convertible Notes | Maximum | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Consecutive trading days | 30 days | |||||||||||||||||
Equipment Loan | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Description about maturity date of debt instrument | The note is due in installments from 2014 through 2016 | |||||||||||||||||
Line of credit outstanding loan amount | $ 2,800,000 | $ 2,800,000 | $ 2,800,000 | ¥ 18.4 | ||||||||||||||
Equipment Loan | Minimum | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Interest rate | 5.40% | |||||||||||||||||
Equipment Loan | Maximum | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Interest rate | 8.00% | |||||||||||||||||
Mortgages | Heidelberg, Germany | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Debt instrument, maturity date | Aug. 31, 2023 | |||||||||||||||||
Interes rate of debt | 1.79% | 1.79% | ||||||||||||||||
Mortgage remaining principal balance | 1,600,000 | 1,600,000 | 1,600,000 | $ 300,000 | € 1,500,000 | € 200,000 | ||||||||||||
Mortgage Loans on Real Estate, Renewed and Extended, Amount | 1,700,000 | 1,700,000 | 1,700,000 | 1,500,000 | ||||||||||||||
Mortgages | Esslingen, Germany | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Debt instrument, maturity date | May 31, 2019 | May 31, 2019 | ||||||||||||||||
Interes rate of debt | 2.50% | 2.50% | ||||||||||||||||
Periodic interest payment | $ 100,000 | € 100,000 | ||||||||||||||||
Construction Loan | 6,500,000 | $ 6,700,000 | 6,500,000 | 6,500,000 | 6,000,000 | € 6,000,000 | ||||||||||||
Mortgages | Angers, France | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Debt instrument, maturity date | May 31, 2025 | |||||||||||||||||
Interes rate of debt | 1.85% | 1.85% | ||||||||||||||||
Construction Loan | 2,200,000 | 2,200,000 | $ 2,300,000 | 2,200,000 | € 2,000,000 | € 2,000,000 | ||||||||||||
Capital leases | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Total debt | $ 500,000 | $ 500,000 | $ 500,000 | $ 500,000 |
Long-Term Debt - Carrying Amoun
Long-Term Debt - Carrying Amount of Debt (Detail) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2011 |
Debt Instrument [Line Items] | |||
Carrying value of debt | $ 231,568,000 | $ 240,576,000 | |
Convertible Notes | |||
Debt Instrument [Line Items] | |||
Principal amount of debt | 85,000,000 | 85,000,000 | $ 85,000,000 |
Unamortized discount | 9,062,000 | 12,756,000 | |
Carrying value of debt | $ 75,938,000 | $ 72,244,000 |
Long-Term Debt - Interest Expen
Long-Term Debt - Interest Expense Associated with Convertible Notes (Detail) - Convertible Notes - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Debt Instrument [Line Items] | |||
Contractual coupon rate of interest | $ 2,338 | $ 2,338 | $ 2,338 |
Accretion of Convertible Notes discount and amortization of deferred financing costs | 4,048 | 3,760 | 3,494 |
Interest expense for the Convertible Notes | $ 6,386 | $ 6,098 | $ 5,832 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 20, 2006 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Common stock, shares authorized (in shares) | 90,000,000 | 90,000,000 | ||
Common stock, shares outstanding (in shares) | 25,772,507 | 26,353,755 | ||
Preferred Stock, shares authorized (in shares) | 10,000,000 | 10,000,000 | 10,000,000 | |
Preferred Stock, shares issued (in shares) | 0 | 0 | ||
Preferred Stock, shares outstanding (in shares) | 0 | 0 | ||
Compensation expense | $ 4 | $ 3.4 | $ 3.2 | |
Compensation expense, net of tax | 2.8 | 2.9 | 2.9 | |
Unrecognized compensation cost | $ 4.7 | |||
Weighted average remaining period | 2 years | |||
Stock price | $ 25.08 | |||
Fair market value of the shares | $ 3.5 | $ 3.8 | $ 2.4 | |
Restricted stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Intrinsic value of stock awards | $ 4 | |||
2004 Plan | Restricted stock | ||||
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 | |||
2014 Plan | Restricted stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Maximum vesting period | 5 years |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Activity of Company's Restricted Stock Grants (Detail) | 12 Months Ended |
Dec. 31, 2015$ / sharesshares | |
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 (in shares) | shares | 159,178 |
Shares granted (in shares) | shares | 133,893 |
Shares for which restrictions lapsed (in shares) | shares | (132,061) |
Restricted shares unvested, ending balance (in shares) | shares | 161,010 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Weighted-average grant date fair value, beginning balance (in USD per share) | $ / shares | $ 28.53 |
Weighted-average grant date fair value, shares granted (in USD per share) | $ / shares | 26.95 |
Weighted-average grant date fair value, shares for which restrictions lapsed (in USD per share) | $ / shares | 26.60 |
Weighted-average grant date fair value, ending balance (in USD per share) | $ / shares | $ 28.62 |
Stockholders' Equity - Share Re
Stockholders' Equity - Share Repurchases (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | May. 31, 2014 | |
Equity [Abstract] | ||
Stock Repurchase Program, authorized amount | $ 50,000,000 | |
Stock Repurchase Program, retired shares | 662,575 | |
Common stock purchase price (in usd per share) | $ 26.11 | |
Stock Repurchase Program, amount available for repurchase | $ 15,100,000 |
Stockholders' Equity - Dividend
Stockholders' Equity - Dividends (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Equity [Abstract] | |||
Cash dividend declared (in usd per share) | $ 0.57 | $ 0.46 | $ 0.38 |
Dividend paid (in usd per share) | $ 0.57 | $ 0.46 |
Concentrations - Additional Inf
Concentrations - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2015agreementcustomer | Dec. 31, 2014customer | Dec. 31, 2013customer | |
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 | agreement | 4 | ||
Agreement 1 | |||
Concentration Risk [Line Items] | |||
Collective bargaining agreements, expire date | Jul. 31, 2016 | ||
Agreement 2 | |||
Concentration Risk [Line Items] | |||
Collective bargaining agreements, expire date | Oct. 31, 2016 | ||
Agreement 3 | |||
Concentration Risk [Line Items] | |||
Collective bargaining agreements, expire date | Jun. 30, 2017 | ||
Agreement 4 | |||
Concentration Risk [Line Items] | |||
Collective bargaining agreements, expire date | Feb. 28, 2018 | ||
United States | |||
Concentration Risk [Line Items] | |||
Percentage of labor force is represented by collective bargaining agreements | 15.00% | ||
Europe | |||
Concentration Risk [Line Items] | |||
Percentage of labor force is represented by collective bargaining agreements | 56.00% | ||
Sales | |||
Concentration Risk [Line Items] | |||
Number of customers representing over 10% of total sales | customer | 0 | 0 | 0 |
Maximum revenue percentage from any one customer | 10.00% | 10.00% | 10.00% |
Restructuring, Asset Impairme74
Restructuring, Asset Impairment, and Transition Expenses - Summary of Total Restructuring Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Expenses | |||
Restructuring costs | $ 7,214 | $ 1,767 | $ 1,111 |
Severance Costs | 5,200 | ||
Building | |||
Expenses | |||
Impairment of asset | 2,000 | ||
Operating Segments | Couplings, Clutches and Brakes | |||
Expenses | |||
Restructuring costs | 2,527 | 444 | 270 |
Operating Segments | Electromagnetic Clutches & Brakes | |||
Expenses | |||
Restructuring costs | 1,600 | 614 | 337 |
Operating Segments | Gearing | |||
Expenses | |||
Restructuring costs | 3,080 | 603 | 504 |
Corporate | |||
Expenses | |||
Restructuring costs | $ 7 | $ 106 | $ 0 |
Restructuring, Asset Impairme75
Restructuring, Asset Impairment, and Transition Expenses - Reconciliation of Accrued Restructuring Costs (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2016 | |
Restructuring Reserve [Roll Forward] | ||||
Beginning Balance | $ 389 | $ 429 | $ 2,815 | |
Restructuring expense incurred | 7,214 | 1,767 | 1,111 | |
Non-cash loss on impairment of fixed assets | (2,003) | |||
Cash payments | (3,389) | (1,807) | (3,497) | |
Ending Balance | $ 2,211 | $ 389 | $ 429 | |
Minimum | Fiscal year 2016 | 2015 Altra Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Additional restructuring expenses | $ 11,000 | |||
Maximum | Fiscal year 2016 | 2015 Altra Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Additional restructuring expenses | $ 13,000 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) € in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2015EUR (€) | |
Schedule Of Commitments And Contingencies [Line Items] | ||||
Net rent expense under operating leases | $ 9 | $ 8.8 | $ 8.8 | |
Purchase contracts | Inventory | ||||
Schedule Of Commitments And Contingencies [Line Items] | ||||
Minimum purchase contracts | $ 5.2 | € 4.8 | ||
Maximum | ||||
Schedule Of Commitments And Contingencies [Line Items] | ||||
Term of lease | 10 years |
Commitments and Contingencies77
Commitments and Contingencies - Future Minimum Rent Obligations under Non-Cancelable Operating and Capital Leases (Detail) $ in Thousands | Dec. 31, 2015USD ($) |
Operating Leases | |
2,016 | $ 7,522 |
2,017 | 5,129 |
2,018 | 3,004 |
2,019 | 2,282 |
2,020 | 1,428 |
Thereafter | 4,650 |
Total lease obligations | 24,015 |
Capital Leases | |
2,016 | 148 |
2,017 | 148 |
2,018 | 148 |
2,019 | 72 |
2,020 | 8 |
Thereafter | 0 |
Total lease obligations | 524 |
Less amounts representing interest | (24) |
Present value of minimum capital lease obligations | $ 500 |
Segment and Geographic Inform78
Segment and Geographic Information - Additional Information (Detail) | 3 Months Ended | 12 Months Ended |
Dec. 31, 2015segment | Dec. 31, 2015 | |
Revenue, Major Customer [Line Items] | ||
Number of reportable segments | 3 | |
Sales | Gearing | ||
Revenue, Major Customer [Line Items] | ||
Maximum revenue percentage from any one customer | 10.50% | |
Number of customers representing approximately 10.5% of total sales | 1 |
Segment and Geographic Inform79
Segment and Geographic Information - Reconciliation of Segment Results to Consolidated Results (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | $ 173,628 | $ 183,053 | $ 196,610 | $ 193,361 | $ 191,961 | $ 202,520 | $ 215,198 | $ 210,138 | $ 746,652 | $ 819,817 | $ 722,218 | |
Operating Income (Loss) | 64,214 | 75,109 | 71,579 | |||||||||
Restructuring | (7,214) | (1,767) | (1,111) | |||||||||
Interest expense, net | 12,164 | 11,994 | 10,586 | |||||||||
Other non-operating (income) expense, net | 963 | (3) | 1,657 | |||||||||
Other non-operating income and expense | 13,127 | 11,991 | 12,243 | |||||||||
Income before income taxes | 51,087 | 63,118 | 59,336 | |||||||||
Provision for income taxes | 15,744 | 22,936 | 19,151 | |||||||||
Net income | 35,343 | 40,182 | 40,185 | |||||||||
Total depreciation and amortization | 30,121 | 32,137 | 27,924 | |||||||||
Total assets | 632,332 | 676,402 | 632,332 | 676,402 | ||||||||
Operating Segments | Couplings, Clutches & Brakes | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | 342,299 | 396,089 | 301,989 | |||||||||
Operating Income (Loss) | 38,750 | 49,299 | 44,658 | |||||||||
Restructuring | (2,527) | (444) | (270) | |||||||||
Total depreciation and amortization | 15,897 | 17,196 | 13,220 | |||||||||
Total assets | 312,117 | 356,272 | 312,117 | 356,272 | ||||||||
Operating Segments | Electromagnetic Clutches & Brakes | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | 219,676 | 218,550 | 213,148 | |||||||||
Operating Income (Loss) | 21,634 | 22,014 | 20,878 | |||||||||
Restructuring | (1,600) | (614) | (337) | |||||||||
Total depreciation and amortization | 4,565 | 5,009 | 4,972 | |||||||||
Total assets | 125,887 | 131,015 | 125,887 | 131,015 | ||||||||
Operating Segments | Gearing | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | 192,252 | 212,628 | 214,152 | |||||||||
Operating Income (Loss) | 21,094 | 22,698 | 21,516 | |||||||||
Restructuring | (3,080) | (603) | (504) | |||||||||
Total depreciation and amortization | 6,617 | 7,447 | 7,539 | |||||||||
Total assets | 150,860 | 155,660 | 150,860 | 155,660 | ||||||||
Inter-segment eliminations | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | (7,575) | (7,450) | (7,071) | |||||||||
Corporate | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Operating Income (Loss) | [1] | (10,050) | (17,135) | (14,362) | ||||||||
Restructuring | (7) | (106) | 0 | |||||||||
Total depreciation and amortization | 3,042 | 2,485 | $ 2,193 | |||||||||
Total assets | [2] | $ 43,468 | $ 33,455 | $ 43,468 | $ 33,455 | |||||||
[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. | |||||||||||
[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. |
Segment and Geographic Inform80
Segment and Geographic Information - Geographic Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net Sales | $ 173,628 | $ 183,053 | $ 196,610 | $ 193,361 | $ 191,961 | $ 202,520 | $ 215,198 | $ 210,138 | $ 746,652 | $ 819,817 | $ 722,218 |
Property, Plant and Equipment | 145,413 | 156,366 | 145,413 | 156,366 | |||||||
Operating Segments | North America | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net Sales | 452,172 | 488,523 | 454,115 | ||||||||
Property, Plant and Equipment | 84,960 | 90,279 | 84,960 | 90,279 | |||||||
Operating Segments | Europe | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net Sales | 218,857 | 255,049 | 216,636 | ||||||||
Property, Plant and Equipment | 52,949 | 51,708 | 52,949 | 51,708 | |||||||
Operating Segments | Asia and the rest of the world | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net Sales | 75,623 | 76,245 | $ 51,467 | ||||||||
Property, Plant and Equipment | $ 7,504 | $ 14,379 | $ 7,504 | $ 14,379 |
Unaudited Quarterly Results o81
Unaudited Quarterly Results of Operations - Schedule of Quarterly Results of Operations (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||
Net Sales | $ 173,628 | $ 183,053 | $ 196,610 | $ 193,361 | $ 191,961 | $ 202,520 | $ 215,198 | $ 210,138 | $ 746,652 | $ 819,817 | $ 722,218 | ||||||||
Gross Profit | 54,204 | 55,800 | 59,986 | 58,473 | 58,270 | 62,333 | 66,470 | 61,796 | 228,463 | 248,869 | 215,381 | ||||||||
Net income attributable to Altra Industrial Motion Corp. (1) | $ 6,108 | [1] | $ 10,221 | [1] | $ 9,679 | [1] | $ 9,398 | [1] | $ 9,059 | [1] | $ 6,946 | [1] | $ 12,797 | [1] | $ 11,365 | [1] | $ 35,406 | $ 40,167 | $ 40,275 |
Basic net income attributable to Altra Industrial Motion Corp. (in usd per share) | $ 0.23 | $ 0.39 | $ 0.37 | $ 0.36 | $ 0.34 | $ 0.26 | $ 0.48 | $ 0.43 | $ 1.36 | $ 1.50 | $ 1.50 | ||||||||
Diluted net income attributable to Altra Industrial Motion Corp. (in usd per share) | $ 0.23 | $ 0.39 | $ 0.37 | $ 0.36 | $ 0.34 | $ 0.25 | $ 0.46 | $ 0.41 | $ 1.36 | $ 1.47 | $ 1.50 | ||||||||
Restructuring Costs | $ 2,220 | $ 651 | $ 2,587 | $ 1,756 | $ 124 | $ 1,643 | $ 0 | $ 0 | |||||||||||
[1] | Includes restructuring costs by quarter. |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - $ / shares | Feb. 11, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Subsequent Event [Line Items] | ||||
Cash dividend declared (in usd per share) | $ 0.57 | $ 0.46 | $ 0.38 | |
Subsequent event | ||||
Subsequent Event [Line Items] | ||||
Cash dividend declared (in usd per share) | $ 0.15 |
Schedule II - Valuation and Q83
Schedule II - Valuation and Qualifying Accounts (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Reserve for Uncollectible Accounts: | |||
Balance at Beginning of Period | $ 2,302 | $ 2,245 | $ 2,560 |
Additions | 785 | 417 | 733 |
Deductions | (922) | (360) | (1,048) |
Balance at End of Period | $ 2,165 | $ 2,302 | $ 2,245 |