Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2016 | Jul. 18, 2016 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | Altra Industrial Motion Corp. | |
Entity Central Index Key | 1,374,535 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding (in shares) | 25,904,412 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 34,330 | $ 50,320 |
Trade receivables, less allowance for doubtful accounts of $2,370 and $2,165 at June 30, 2016 and December 31, 2015, respectively | 103,271 | 94,720 |
Inventories | 120,567 | 121,156 |
Income tax receivable | 1,419 | 5,146 |
Prepaid expenses and other current assets | 11,981 | 11,217 |
Assets held for sale | 4,728 | 4,597 |
Total current assets | 276,296 | 287,156 |
Property, plant and equipment, net | 145,569 | 145,413 |
Intangible assets, net | 92,497 | 96,069 |
Goodwill | 97,766 | 97,309 |
Deferred income taxes | 3,199 | 3,201 |
Other non-current assets, net | 2,656 | 3,184 |
Total assets | 617,983 | 632,332 |
Current liabilities: | ||
Accounts payable | 44,647 | 40,297 |
Accrued payroll | 19,908 | 22,312 |
Accruals and other current liabilities | 34,737 | 34,990 |
Income tax payable | 3,021 | 3,563 |
Current portion of long-term debt | 708 | 3,187 |
Total current liabilities | 103,021 | 104,349 |
Long-term debt - less current portion and net of unaccreted discount | 210,470 | 231,568 |
Deferred income taxes | 44,302 | 44,185 |
Pension liabilities | 8,839 | 8,328 |
Long-term taxes payable | 662 | 647 |
Other long-term liabilities | 699 | 688 |
Stockholders’ equity: | ||
Common stock ($0.001 par value, 90,000,000 shares authorized, 25,619,692 and 25,772,507 issued and outstanding at June 30, 2016 and December 31, 2015, respectively) | 26 | 26 |
Additional paid-in capital | 122,651 | 124,834 |
Retained earnings | 191,907 | 181,539 |
Accumulated other comprehensive loss | (64,594) | (63,832) |
Total stockholders’ equity | 249,990 | 242,567 |
Total liabilities, and stockholders’ equity | $ 617,983 | $ 632,332 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 2,370 | $ 2,165 |
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) | 25,619,692 | 25,772,507 |
Common stock, shares outstanding (in shares) | 25,619,692 | 25,772,507 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Income Statement [Abstract] | ||||
Net sales | $ 182,674 | $ 196,610 | $ 363,127 | $ 389,971 |
Cost of sales | 124,474 | 136,624 | 250,297 | 271,512 |
Gross profit | 58,200 | 59,986 | 112,830 | 118,459 |
Operating expenses: | ||||
Selling, general and administrative expenses | 35,870 | 35,152 | 69,406 | 71,454 |
Research and development expenses | 4,514 | 4,534 | 9,078 | 9,296 |
Restructuring costs | 1,641 | 2,587 | 3,194 | 4,343 |
Total operating expenses | 42,025 | 42,273 | 81,678 | 85,093 |
Income from operations | 16,175 | 17,713 | 31,152 | 33,366 |
Other non-operating income and expense: | ||||
Interest expense, net | 2,904 | 2,978 | 5,800 | 5,934 |
Other non-operating (income) expense, net | (205) | 750 | (483) | (79) |
Total other non-operating expense, net | 2,699 | 3,728 | 5,317 | 5,855 |
Income before income taxes | 13,476 | 13,985 | 25,835 | 27,511 |
Provision for income taxes | 4,127 | 4,360 | 7,676 | 8,496 |
Net income | 9,349 | 9,625 | 18,159 | 19,015 |
Net loss attributable to non-controlling interest | 0 | 54 | 0 | 63 |
Net income attributable to Altra Industrial Motion Corp. | $ 9,349 | $ 9,679 | $ 18,159 | $ 19,078 |
Weighted average shares, basic (in shares) | 25,699 | 26,280 | 25,699 | 26,204 |
Weighted average shares, diluted (in shares) | 25,968 | 26,450 | 25,793 | 26,287 |
Net income per share: | ||||
Basic net income attributable to Altra Industrial Motion Corp. (in usd per share) | $ 0.36 | $ 0.37 | $ 0.71 | $ 0.73 |
Diluted net income attributable to Altra Industrial Motion Corp. (in usd per share) | 0.36 | 0.37 | 0.70 | 0.73 |
Cash dividend declared (in usd per share) | $ 0.15 | $ 0.15 | $ 0.30 | $ 0.27 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Statement of Comprehensive Income [Abstract] | ||||
Net Income | $ 9,349 | $ 9,625 | $ 18,159 | $ 19,015 |
Other Comprehensive income (loss): | ||||
Foreign currency translation adjustment | (4,951) | (4,413) | (762) | (11,768) |
Change in fair value of interest rate swap, net of tax | 0 | 63 | 0 | (219) |
Other comprehensive loss | (4,951) | (4,350) | (762) | (11,987) |
Comprehensive income | 4,398 | 5,275 | 17,397 | 7,028 |
Comprehensive loss attributable to non-controlling interest | 0 | (28) | 0 | (192) |
Comprehensive income attributable to Altra Industrial Motion Corp. | $ 4,398 | $ 5,303 | $ 17,397 | $ 7,220 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Cash flows from operating activities | ||
Net Income | $ 18,159 | $ 19,015 |
Adjustments to reconcile net income to net cash flows: | ||
Depreciation | 10,487 | 10,832 |
Amortization of intangible assets | 4,262 | 4,300 |
Amortization of deferred financing costs | 393 | 468 |
Gain on foreign currency, net | (100) | (125) |
Accretion of debt discount, net | 1,962 | 1,810 |
Loss on disposal / impairment of fixed assets | 411 | 1,127 |
Stock based compensation | 2,312 | 2,215 |
Changes in assets and liabilities: | ||
Trade receivables | (8,890) | (13,320) |
Inventories | 238 | 2,742 |
Accounts payable and accrued liabilities | 1,470 | 2,262 |
Other current assets and liabilities | (698) | 74 |
Other operating assets and liabilities | 526 | (1,286) |
Net cash provided by operating activities | 30,532 | 30,114 |
Cash flows from investing activities | ||
Purchase of property, plant and equipment | (10,861) | (13,482) |
Net cash used in investing activities | (10,861) | (13,482) |
Cash flows from financing activities | ||
Payments on term loan facility | 0 | (11,445) |
Payments on Revolving Credit Facility | (26,507) | (2,000) |
Dividend payments | (3,903) | (3,178) |
Proceeds from equipment and working capital notes | 0 | 1,100 |
Borrowing under Revolving Credit Facility | 0 | 6,000 |
Payments of equipment and working capital notes | (2,477) | (2,396) |
Proceeds from mortgages and other debt | 3,112 | 3,012 |
Shares surrendered for tax withholding | (103) | (128) |
Payments on mortgages and other debt | (68) | (254) |
Purchase of non-controlling interest in Lamiflex | 0 | (878) |
Purchases of common stock under share repurchase program | (4,391) | (8,006) |
Net cash used in financing activities | (34,337) | (18,173) |
Effect of exchange rate changes on cash and cash equivalents | (1,324) | (3,685) |
Net change in cash and cash equivalents | (15,990) | (5,226) |
Cash and cash equivalents at beginning of year | 50,320 | 47,503 |
Cash and cash equivalents at end of period | 34,330 | 42,277 |
Cash paid during the period for: | ||
Interest | 3,584 | 3,795 |
Income taxes | $ 5,176 | $ 7,096 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Redeemable Non-Controlling Interest [Member] |
Beginning balance at Dec. 31, 2014 | $ 258,759 | $ 26 | $ 139,087 | $ 161,061 | $ (41,415) | $ 883 |
Beginning 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 | 2,087 | 2,087 | ||||
Stock-based compensation and vesting of restricted stock (in shares) | 15,000 | |||||
Net income attributable to Altra Industrial Motion Corp. | 19,078 | 19,078 | ||||
Net loss attributable to non-controlling interest | 63 | (63) | ||||
Purchase of Minority Interest | (187) | 223 | (410) | (691) | ||
Dividends declared | (7,129) | (7,129) | ||||
Change in fair value of interest rate swap | (219) | (219) | ||||
Cumulative foreign currency translation adjustment | (11,768) | (11,768) | (129) | |||
Repurchases of common stock | (8,006) | (8,006) | ||||
Repurchases of common stock (in shares) | (294,000) | |||||
Ending balance at Jun. 30, 2015 | 252,615 | $ 26 | 133,391 | 173,010 | (53,812) | 0 |
Ending balance (in shares) at Jun. 30, 2015 | 26,075,000 | |||||
Beginning balance at Dec. 31, 2015 | 242,567 | $ 26 | 124,834 | 181,539 | (63,832) | 0 |
Beginning balance (in shares) at Dec. 31, 2015 | 25,773,000 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock-based compensation and vesting of restricted stock | 2,208 | 2,208 | ||||
Stock-based compensation and vesting of restricted stock (in shares) | 19,000 | |||||
Net income attributable to Altra Industrial Motion Corp. | 18,159 | 18,159 | ||||
Net loss attributable to non-controlling interest | 0 | |||||
Dividends declared | (7,791) | (7,791) | ||||
Cumulative foreign currency translation adjustment | (762) | (762) | ||||
Repurchases of common stock | $ (4,391) | (4,391) | ||||
Repurchases of common stock (in shares) | (80,189) | (172,000) | ||||
Ending balance at Jun. 30, 2016 | $ 249,990 | $ 26 | $ 122,651 | $ 191,907 | $ (64,594) | $ 0 |
Ending balance (in shares) at Jun. 30, 2016 | 25,620,000 |
Organization and Nature of Oper
Organization and Nature of Operations | 6 Months Ended |
Jun. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Nature of Operations | Organization and Nature of Operations 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. |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The Company’s unaudited condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and do not include all of the information and note disclosures required by accounting principles generally accepted in the United States of America. These statements should be read in conjunction with the financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015 . In the opinion of management, the accompanying unaudited condensed consolidated financial statements include all adjustments, consisting of normal recurring adjustments, necessary to present fairly the Company’s financial position for the interim periods presented, and cash flows for the interim periods presented. The results are not necessarily indicative of future results. The Company considers events or transactions that occur after the balance sheet date but before the financial statements are issued to provide additional evidence relative to certain estimates or to identify matters that require additional disclosure. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2016 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting (“ASU 2016-09”) . The updated guidance revises aspects of stock-based compensation guidance which include income tax consequences, classification of awards as equity or liabilities, and classification on the statement of cash flows. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. Early adoption is permitted. We are evaluating the impact of adopting this new accounting guidance on our consolidated financial statements. 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 beginning after 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 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. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 6 Months Ended |
Jun. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
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 approximate fair value. Debt under the Company’s 2015 Credit Agreement approximates the fair value due to the variable rate nature at current market rates. The carrying amount of the 2.75% Convertible Notes (the “Convertible Notes”) was $85 million at both June 30, 2016 and December 31, 2015 . The estimated fair value of the Convertible Notes at June 30, 2016 and December 31, 2015 was $97.1 million and $91.7 million , respectively, based on inputs other than quoted prices that are observable for the Convertible Notes (Level 2). Included in cash and cash equivalents at June 30, 2016 and December 31, 2015 are money market fund investments of $0.3 million , which are reported at fair value based on quoted market prices for such investments (Level 1). |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Loss by Component | 6 Months Ended |
Jun. 30, 2016 | |
Equity [Abstract] | |
Changes in Accumulated Other Comprehensive Income (Loss) by Component | Changes in Accumulated Other Comprehensive Loss by Component The following is a reconciliation of changes in accumulated other comprehensive loss by component for the periods presented: Gains and Losses on Cash Flow Hedges Defined Benefit Pension Plans Cumulative Foreign Currency Translation Adjustment Total Accumulated Other Comprehensive Loss by Component, January 1, 2016 $ (140 ) $ (5,807 ) $ (57,885 ) $ (63,832 ) Net current-period Other Comprehensive Income (Loss) — 148 (910 ) (762 ) Accumulated Other Comprehensive (Loss) by Component, June 30, 2016 $ (140 ) $ (5,659 ) $ (58,795 ) $ (64,594 ) Gains and Losses on Cash Flow Hedges Defined Benefit Pension Plans Cumulative Foreign Currency Translation Adjustment Total Accumulated Other Comprehensive Income (Loss) by Component, January 1, 2015 $ 143 $ (4,818 ) $ (36,740 ) $ (41,415 ) Cumulative losses transferred from Lamiflex — — (410 ) (410 ) Net current-period Other Comprehensive Loss (219 ) — (11,768 ) (11,987 ) Accumulated Other Comprehensive Loss by Component, June 30, 2015 $ (76 ) $ (4,818 ) $ (48,918 ) $ (53,812 ) |
Net Income per Share
Net Income per Share | 6 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |
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 equivalents are included in the per share calculations when the effect of their inclusion is dilutive. The following is a reconciliation of basic to diluted net income per share: Quarter Ended Year to Date Ended June 30, 2016 June 30, 2015 June 30, 2016 June 30, 2015 Net income attributable to Altra Industrial Motion Corp. $ 9,349 $ 9,679 $ 18,159 $ 19,078 Shares used in net income per common share - basic 25,699 26,280 25,699 26,204 Dilutive effect of the equity premium on Convertible Notes at the average price of common stock 232 127 9 37 Incremental shares of unvested restricted common stock 37 43 85 46 Shares used in net income per common share - diluted 25,968 26,450 25,793 26,287 Earnings per share: Basic net income attributable to Altra Industrial Motion Corp. $ 0.36 $ 0.37 $ 0.71 $ 0.73 Diluted net income attributable to Altra Industrial Motion Corp. $ 0.36 $ 0.37 $ 0.70 $ 0.73 During the quarter ended June 30, 2016 , the Company’s common stock price exceeded the current conversion price of the Company’s Convertible Notes, resulting in additional shares being included in net income per common share in the diluted earnings per share calculation above. |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2016 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories at June 30, 2016 and December 31, 2015 consisted of the following: June 30, 2016 December 31, 2015 Raw materials $ 35,395 $ 34,169 Work in process 12,536 12,864 Finished goods 72,636 74,123 $ 120,567 $ 121,156 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 6 Months Ended |
Jun. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Changes in goodwill from January 1, through June 30, 2016 were as follows: Couplings, Clutches & Brakes Electromagnetic Clutches & Brakes Gearing Total Net goodwill balance January 1, 2016 $ 25,290 $ 24,661 $ 47,358 $ 97,309 Impact of changes in foreign currency and other 195 (14 ) 276 457 Net goodwill balance June 30, 2016 $ 25,485 $ 24,647 $ 47,634 $ 97,766 Other intangible assets as of June 30, 2016 and December 31, 2015 consisted of the following: June 30, 2016 December 31, 2015 Cost Accumulated Amortization Net Cost Accumulated Amortization Net Other intangible assets Intangible assets not subject to amortization: Tradenames and trademarks $ 39,367 $ — $ 39,367 $ 39,625 $ — $ 39,625 Intangible assets subject to amortization: Customer relationships 113,160 60,698 52,462 112,408 56,677 55,731 Product technology and patents 6,095 5,427 668 6,049 5,336 713 Total intangible assets $ 158,622 $ 66,125 $ 92,497 $ 158,082 $ 62,013 $ 96,069 The Company recorded $2.1 million of amortization expense in each of the quarters ended June 30, 2016 and 2015 , and recorded $4.3 million of amortization in each of the year to date periods ended June 30, 2016 and 2015 . The estimated amortization expense for intangible assets is approximately $4.0 million for the remainder of 2016 , $8.3 million in each of the next four years and then $15.9 million thereafter. |
Warranty Costs
Warranty Costs | 6 Months Ended |
Jun. 30, 2016 | |
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 unaudited condensed 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 year to date periods ended June 30, 2016 and June 30, 2015 are as follows: June 30, 2016 June 30, 2015 Balance at beginning of period $ 9,468 $ 7,792 Accrued current period warranty expense 930 1,275 Payments and adjustments (1,161 ) (1,065 ) Balance at end of period $ 9,237 $ 8,002 |
Debt
Debt | 6 Months Ended |
Jun. 30, 2016 | |
Debt Disclosure [Abstract] | |
Debt | Debt Outstanding debt obligations at June 30, 2016 and December 31, 2015 were as follows. June 30, 2016 December 31, 2015 Debt: Revolving Credit Facility $ 118,836 $ 145,152 Convertible Notes 85,000 85,000 Mortgages 13,662 10,333 Equipment and working capital notes 347 2,832 Capital leases 433 500 Total debt 218,278 243,817 Less: debt discount, net of accretion (7,100 ) (9,062 ) Total debt, net of unaccreted discount $ 211,178 $ 234,755 Less current portion of long-term debt (708 ) (3,187 ) Total long-term debt, net of unaccreted discount $ 210,470 $ 231,568 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 was 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 was 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 2015 Revolving Credit Facility 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 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 June 30, 2016 we had $118.8 million outstanding on our 2015 Revolving Credit Facility, including $106.2 million outstanding on our USD tranche at an interest rate of 1.96% and $12.6 million outstanding on our Euro tranche at an interest rate of 1.50% . As of June 30, 2016 and December 31, 2015, we had $7.9 million and $7.0 million in letters of credit outstanding, respectively. We had $223.3 million available to borrow under the 2015 Revolving Credit Facility at June 30, 2016 . Convertible Senior Notes In March 2011, the Company issued 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 acquisition of substantially all of the assets and liabilities of Danfoss Bauer GmbH relating to its gear motor business, 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 June 30, 2016 is $25.84 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 $25.84 , for at least 20 of the last 30 consecutive trading days in the fiscal quarter ended June 30, 2016 , the Convertible Notes are not convertible at the election of the holders of the Convertible Notes at any time during the fiscal quarter ending September 30, 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. The carrying amount of the principal amount of the liability component, the unamortized discount, and the net carrying amount are as follows as of June 30, 2016 . Principal amount of debt $ 85,000 Unamortized discount 7,100 Carrying value of debt $ 77,900 Interest expense associated with the Convertible Notes consists of the following components. Quarter Ended June 30, 2016 June 30, 2015 Contractual coupon rate of interest $ 584 $ 586 Accretion of Convertible Notes discount and amortization of deferred financing costs 994 917 Interest expense for the convertible notes $ 1,578 $ 1,503 Year to Date Ended June 30, 2016 June 30, 2015 Contractual coupon rate of interest $ 1,169 $ 1,170 Accretion of Convertible Notes discount and amortization of deferred financing costs 1,962 1,898 Interest expense for the convertible notes $ 3,131 $ 3,068 The effective interest yield of the Convertible Notes due in 2031 is 8.5% at June 30, 2016 and the cash coupon interest rate is 2.75% . Equipment and Working Capital Notes A foreign subsidiary of 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 by the Company’s U.S. bank in favor of the lending bank in China. As of June 30, 2016 , the total available to borrow was 50.5 million RMB ( $7.6 million ). The loan is due in installments from 2014 through 2016 , with interest varying between 5.4% and 8.02% . The Company has a $2.0 million RMB ( $0.3 million ) line of credit outstanding at June 30, 2016 . 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 June 30, 2016 . Mortgages Heidelberg Germany During 2015, a foreign subsidiary of the Company entered into a 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 $1.7 million , at June 30, 2016. Esslingen Germany During 2015, a foreign subsidiary of the Company entered into a mortgage with a bank for €6.0 million , or $6.8 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 $6.7 million , at June 30, 2016. The principal portion of the mortgage will be due in a lump-sum payment in May 2019. During the quarter ended March 31, 2016, a foreign subsidiary of the Company entered in to a loan with a bank to equip its facility in Zlate Moravce, Slovakia. As of June 30, 2016, the total available to borrow was €3.0 million , or $3.1 million , and is guaranteed by land security at its parent company facility in Esslingen, Germany. The loan is due in installments from 2016 through 2020, with an interest rate of 1.95% . Angers France During 2015, 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 in Angers, France. 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 June 30, 2016. 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 $0.4 million at June 30, 2016 and approximately $0.5 million at December 31, 2015 . 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 June 30, 2016 or December 31, 2015 under any of the overdraft agreements. |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2016 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | Stockholders’ Equity Stock-Based Compensation The Company’s 2004 Equity Incentive Plan (the “2004 Plan”) permitted the grant of various forms of stock based compensation to our officers and senior level employees. The 2004 Plan expired in 2014 and, upon expiration, there were 750,576 shares subject to outstanding awards under the 2004 Plan. The 2014 Omnibus Incentive Plan (the “2014 Plan”) was approved by the Company’s shareholders at its 2014 annual meeting. The 2014 Plan provides for various forms of stock based compensation to our directors, executive personnel and other key employees and consultants. Under the 2014 Plan, the total number of shares of common stock available for delivery pursuant to the grant of awards (“Awards”) was originally 750,000 . Shares of our common stock subject to Awards 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 certain events. Common stock awarded under the 2014 Plan is generally subject to restrictions on transfer, repurchase rights, and other limitations and rights as set forth in the applicable award agreements. The shares are valued based on the share price on the date of grant. The 2014 Plan permits the Company to grant, among other things, restricted stock, restricted stock units, and performance share awards to key employees and other persons who make significant contributions to the success of the Company. The restrictions and vesting schedule for restricted stock granted under the 2014 Plan are determined by the Personnel and Compensation Committee of the Board of Directors. Stock-based compensation expense recorded during the quarters ended June 30, 2016 and June 30, 2015 , was $2.3 million and $2.2 million , respectively. The Company recognizes stock-based compensation expense on a straight-line basis for the shares vesting ratably under the plan and uses the graded-vesting method of recognizing stock-based compensation expense for the performance share awards based on the probability of the specific performance metrics being achieved over the requisite service period. The following table sets forth the activity of the Company’s restricted stock and performance share grants in the year to date period ended June 30, 2016 : Shares Weighted-average grant date fair value Shares unvested January 1, 2016 161,010 $ 28.62 Shares granted 166,882 22.70 Shares for which restrictions lapsed (24,195 ) 24.74 Shares unvested June 30, 2016 303,697 $ 24.14 Total remaining unrecognized compensation cost was $5.4 million as of June 30, 2016 , which will be recognized over a weighted average remaining period of 3 years . The fair market value of the shares for which the restrictions have lapsed during the year to date period ended June 30, 2016 was $0.6 million . 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 share repurchase program authorizing the buyback of up to $50.0 million of the Company’s common stock. Under the program, the Company may 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 quarter ended June 30, 2016 , the Company repurchased 80,189 shares of common stock at an average purchase price of $ 27.84 per share. As of June 30, 2016 , up to $10.7 million was available to purchase additional shares 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 a dividend of $0.15 per share of common stock related to the quarter ended June 30, 2016 . The dividend for the quarter ended June 30, 2016 was accrued in the balance sheet at June 30, 2016. The Company declared and paid a cash dividend $0.15 for the quarter ended June 30, 2015 which was accrued at June 30, 2015. 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. |
Restructuring, Asset Impairment
Restructuring, Asset Impairment, and Transition Expenses | 6 Months Ended |
Jun. 30, 2016 | |
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. 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 table details restructuring charges incurred by segment for the periods presented. Quarter Ended Year to Date Period Ended June 30, 2016 June 30, 2015 June 30, 2016 June 30, 2015 Couplings, Clutches & Brakes $ 1,089 $ 332 $ 1,493 $ 637 Electromagnetic Clutches & Brakes 345 1,368 1,017 1,367 Gearing — 887 16 2,331 Corporate 207 — 668 8 Total $ 1,641 $ 2,587 $ 3,194 $ 4,343 The amounts for the year to date period ended June 30, 2016 are related to approximately $1.6 million in severance, $0.6 million in consolidation costs, $0.4 million in moving and relocation costs, $0.1 million in building impairments, and $0.5 million in travel-related and other restructuring costs. The amounts for the year to date period ended June 30, 2015 were limited to severance costs related to staff reductions and plant closures and are classified in the accompanying unaudited condensed consolidated statement of income as restructuring costs. The following is a reconciliation of the accrued restructuring costs between January 1, 2016 and June 30, 2016: All Plans Balance at January 1, 2016 $ 2,211 Restructuring expense incurred 3,194 Non-cash loss on impairment of fixed assets (448 ) Cash payments (3,005 ) Balance at June 30, 2016 $ 1,952 The total restructuring reserve as of June 30, 2016 relates to severance costs to be paid to employees and is recorded in accruals and other current liabilities on the accompanying unaudited condensed consolidated balance sheet which are expected to be paid during 2016. The Company expects to incur between approximately $7.0 - $9.0 million in additional restructuring expenses between 2016 and 2018 under the 2015 Altra Plan, primarily in the Couplings, Clutches & Brakes and Gearing business segments. |
Segments, Concentrations and Ge
Segments, Concentrations and Geographic Information | 6 Months Ended |
Jun. 30, 2016 | |
Segment Reporting [Abstract] | |
Segments, Concentrations and Geographic Information | Segments, Concentrations and Geographic Information Segments 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. 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: Quarters Ended June 30, Year to date periods Ended June 30, 2016 2015 2016 2015 Net Sales: Couplings, Clutches & Brakes $ 78,157 $ 90,351 $ 153,780 $ 179,466 Electromagnetic Clutches & Brakes 57,053 58,250 114,402 115,886 Gearing 49,096 49,611 98,015 98,817 Inter-segment eliminations (1,632 ) (1,602 ) (3,070 ) (4,198 ) Net sales $ 182,674 $ 196,610 $ 363,127 $ 389,971 Income from operations: Segment earnings: Couplings, Clutches & Brakes $ 7,554 $ 10,809 $ 13,845 $ 20,763 Electromagnetic Clutches & Brakes 7,068 6,194 13,531 11,522 Gearing 5,867 6,076 11,629 10,825 Restructuring (1,641 ) (2,587 ) (3,194 ) (4,343 ) Corporate expenses (1) (2,673 ) (2,779 ) (4,659 ) (5,401 ) Income from operations $ 16,175 $ 17,713 $ 31,152 $ 33,366 Other non-operating (income) expense: Net interest expense $ 2,904 $ 2,978 $ 5,800 $ 5,934 Other non-operating (income) expense, net (205 ) 750 (483 ) (79 ) 2,699 3,728 5,317 5,855 Income before income taxes 13,476 13,985 25,835 27,511 Provision for income taxes 4,127 4,360 7,676 8,496 Net income $ 9,349 $ 9,625 $ 18,159 $ 19,015 (1) Certain expenses are maintained at the corporate level and not allocated to the segments. These include various administrative expenses related to corporate headquarters, depreciation on capitalized software costs, non-capitalizable software implementation costs and acquisition related expenses. Selected information by segment (continued) Quarter Ended Year to Date Period Ended June 30, 2016 June 30, 2015 June 30, 2016 June 30, 2015 Depreciation and amortization: Couplings, Clutches & Brakes $ 3,770 $ 4,032 $ 7,458 $ 7,996 Electromagnetic Clutches & Brakes 1,177 1,137 2,325 2,287 Gearing 1,728 1,692 3,398 3,357 Corporate 813 754 1,568 1,492 Total depreciation and amortization $ 7,488 $ 7,615 $ 14,749 $ 15,132 June 30, 2016 December 31, 2015 Total assets: Couplings, Clutches & Brakes $ 330,985 $ 312,117 Electromagnetic Clutches & Brakes 125,485 125,887 Gearing 133,168 150,860 Corporate (2) 28,345 43,468 Total assets $ 617,983 $ 632,332 (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. Net sales to third parties by geographic region are as follows : Net Sales Quarter Ended Year to Date Period Ended June 30, 2016 June 30, 2015 June 30, 2016 June 30, 2015 North America (primarily U.S.) $ 104,779 $ 119,485 $ 216,962 $ 241,795 Europe 59,237 57,032 111,351 112,072 Asia and other 18,658 20,093 34,814 36,104 Total $ 182,674 $ 196,610 $ 363,127 $ 389,971 Net sales to third parties are attributed to the geographic regions based on the country in which the shipment originates. Concentrations Financial instruments, which are potentially subject to counter party performance and concentrations of credit risk, consist primarily of trade accounts receivable. The Company manages these risks by conducting credit evaluations of customers prior to delivery or commencement of services. When the Company enters into a sales contract, collateral is normally not required from the customer. Payments are typically due within 30 days of billing. An allowance for potential credit losses is maintained, and losses have historically been within management’s expectations. While the Company did not have any customers that represented total sales greater than 10% for each of the quarters ended June 30, 2016 and 2015, the Gearing business had one customer that approximated 10.1% of total sales for that segment during the quarter ended June 30, 2015. The Company is also subject to counter party performance risk of loss in the event of non-performance by counterparties to financial instruments, such as cash and investments. Cash and cash equivalents are held by well-established financial institutions and invested in AAA rated mutual funds. The Company is exposed to swap counterparty credit risk with well-established financial institutions. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies General Litigation The Company is involved in various pending legal proceedings arising out of the ordinary course of business. These proceedings primarily involve commercial claims, product liability claims, personal injury claims, and workers’ compensation claims. None of these legal proceedings are expected to have a material adverse effect on the results of operations, cash flows, or financial condition of the Company. With respect to these proceedings, management believes that the Company will prevail, has adequate insurance coverage or has established appropriate reserves to cover potential liabilities. Any costs that management estimates may be paid related to these proceedings or claims are accrued when the liability is considered probable and the amount can be reasonably estimated. There can be no assurance, however, as to the ultimate outcome of any of these matters, and if all or substantially all of these legal proceedings were to be determined adversely to the Company, there could be a material adverse effect on the results of operations, cash flows, or financial condition of the Company. We have established loss provisions for matters in which losses are probable and can be reasonably estimated. There were no material amounts accrued in the accompanying unaudited condensed consolidated balance sheet for potential litigation as of June 30, 2016 or December 31, 2015 . 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 unaudited condensed consolidated financial statements. The Company also risks exposure to product liability claims in connection with products it has sold and those sold by businesses that the Company acquired. Although in some cases third parties have retained responsibility for product liability claims relating to products manufactured or sold prior to the acquisition of the relevant business and in other cases the persons from whom the Company has acquired a business may be required to indemnify the Company for certain product liability claims subject to certain caps or limitations on indemnification, the Company cannot assure that those third parties will in fact satisfy their obligations with respect to liabilities retained by them or their indemnification obligations. If those third parties become unable to or otherwise do not comply with their respective obligations including indemnity obligations, or if certain product liability claims for which the Company is obligated were not retained by third parties or are not subject to these indemnities, the Company could become subject to significant liabilities or other adverse consequences. Moreover, even in cases where third parties retain responsibility for product liability claims or are required to indemnify the Company, significant claims arising from products that have been acquired could have a material adverse effect on the Company’s ability to realize the benefits from an acquisition, could result in the reduction of the value of goodwill that the Company recorded in connection with an acquisition, or could otherwise have a material adverse effect on the Company’s business, financial condition, or operations. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On July 20, 2016, the Company has declared a dividend of $0.15 per share for the quarter ended September 30, 2016, payable on October 4, 2016 to shareholders of record as of September 19, 2016. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The Company’s unaudited condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and do not include all of the information and note disclosures required by accounting principles generally accepted in the United States of America. These statements should be read in conjunction with the financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015 . In the opinion of management, the accompanying unaudited condensed consolidated financial statements include all adjustments, consisting of normal recurring adjustments, necessary to present fairly the Company’s financial position for the interim periods presented, and cash flows for the interim periods presented. The results are not necessarily indicative of future results. The Company considers events or transactions that occur after the balance sheet date but before the financial statements are issued to provide additional evidence relative to certain estimates or to identify matters that require additional disclosure. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting (“ASU 2016-09”) . The updated guidance revises aspects of stock-based compensation guidance which include income tax consequences, classification of awards as equity or liabilities, and classification on the statement of cash flows. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. Early adoption is permitted. We are evaluating the impact of adopting this new accounting guidance on our consolidated financial statements. 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 beginning after 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 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. |
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 approximate fair value. Debt under the Company’s 2015 Credit Agreement approximates the fair value due to the variable rate nature at current market rates. |
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 equivalents are included in the per share calculations when the effect of their inclusion is dilutive. |
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 unaudited condensed consolidated balance sheet. Estimates are established using historical information as to the nature, frequency and average costs of warranty claims. |
Changes in Accumulated Other 24
Changes in Accumulated Other Comprehensive Loss by Component (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Equity [Abstract] | |
Changes in Accumulated Other Comprehensive Income (Loss) by Component | The following is a reconciliation of changes in accumulated other comprehensive loss by component for the periods presented: Gains and Losses on Cash Flow Hedges Defined Benefit Pension Plans Cumulative Foreign Currency Translation Adjustment Total Accumulated Other Comprehensive Loss by Component, January 1, 2016 $ (140 ) $ (5,807 ) $ (57,885 ) $ (63,832 ) Net current-period Other Comprehensive Income (Loss) — 148 (910 ) (762 ) Accumulated Other Comprehensive (Loss) by Component, June 30, 2016 $ (140 ) $ (5,659 ) $ (58,795 ) $ (64,594 ) Gains and Losses on Cash Flow Hedges Defined Benefit Pension Plans Cumulative Foreign Currency Translation Adjustment Total Accumulated Other Comprehensive Income (Loss) by Component, January 1, 2015 $ 143 $ (4,818 ) $ (36,740 ) $ (41,415 ) Cumulative losses transferred from Lamiflex — — (410 ) (410 ) Net current-period Other Comprehensive Loss (219 ) — (11,768 ) (11,987 ) Accumulated Other Comprehensive Loss by Component, June 30, 2015 $ (76 ) $ (4,818 ) $ (48,918 ) $ (53,812 ) |
Net Income per Share (Tables)
Net Income per Share (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |
Reconciliation of Basic to Diluted Net Income per Share | The following is a reconciliation of basic to diluted net income per share: Quarter Ended Year to Date Ended June 30, 2016 June 30, 2015 June 30, 2016 June 30, 2015 Net income attributable to Altra Industrial Motion Corp. $ 9,349 $ 9,679 $ 18,159 $ 19,078 Shares used in net income per common share - basic 25,699 26,280 25,699 26,204 Dilutive effect of the equity premium on Convertible Notes at the average price of common stock 232 127 9 37 Incremental shares of unvested restricted common stock 37 43 85 46 Shares used in net income per common share - diluted 25,968 26,450 25,793 26,287 Earnings per share: Basic net income attributable to Altra Industrial Motion Corp. $ 0.36 $ 0.37 $ 0.71 $ 0.73 Diluted net income attributable to Altra Industrial Motion Corp. $ 0.36 $ 0.37 $ 0.70 $ 0.73 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Inventory Disclosure [Abstract] | |
Summary of Inventories | Inventories at June 30, 2016 and December 31, 2015 consisted of the following: June 30, 2016 December 31, 2015 Raw materials $ 35,395 $ 34,169 Work in process 12,536 12,864 Finished goods 72,636 74,123 $ 120,567 $ 121,156 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in Goodwill | Changes in goodwill from January 1, through June 30, 2016 were as follows: Couplings, Clutches & Brakes Electromagnetic Clutches & Brakes Gearing Total Net goodwill balance January 1, 2016 $ 25,290 $ 24,661 $ 47,358 $ 97,309 Impact of changes in foreign currency and other 195 (14 ) 276 457 Net goodwill balance June 30, 2016 $ 25,485 $ 24,647 $ 47,634 $ 97,766 |
Schedule of Definite-Lived Intangible Assets | Other intangible assets as of June 30, 2016 and December 31, 2015 consisted of the following: June 30, 2016 December 31, 2015 Cost Accumulated Amortization Net Cost Accumulated Amortization Net Other intangible assets Intangible assets not subject to amortization: Tradenames and trademarks $ 39,367 $ — $ 39,367 $ 39,625 $ — $ 39,625 Intangible assets subject to amortization: Customer relationships 113,160 60,698 52,462 112,408 56,677 55,731 Product technology and patents 6,095 5,427 668 6,049 5,336 713 Total intangible assets $ 158,622 $ 66,125 $ 92,497 $ 158,082 $ 62,013 $ 96,069 |
Schedule of Indefinite-Lived Intangible Assets | Other intangible assets as of June 30, 2016 and December 31, 2015 consisted of the following: June 30, 2016 December 31, 2015 Cost Accumulated Amortization Net Cost Accumulated Amortization Net Other intangible assets Intangible assets not subject to amortization: Tradenames and trademarks $ 39,367 $ — $ 39,367 $ 39,625 $ — $ 39,625 Intangible assets subject to amortization: Customer relationships 113,160 60,698 52,462 112,408 56,677 55,731 Product technology and patents 6,095 5,427 668 6,049 5,336 713 Total intangible assets $ 158,622 $ 66,125 $ 92,497 $ 158,082 $ 62,013 $ 96,069 |
Warranty Costs (Tables)
Warranty Costs (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
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 year to date periods ended June 30, 2016 and June 30, 2015 are as follows: June 30, 2016 June 30, 2015 Balance at beginning of period $ 9,468 $ 7,792 Accrued current period warranty expense 930 1,275 Payments and adjustments (1,161 ) (1,065 ) Balance at end of period $ 9,237 $ 8,002 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Debt Disclosure [Abstract] | |
Outstanding Debt Obligations | Outstanding debt obligations at June 30, 2016 and December 31, 2015 were as follows. June 30, 2016 December 31, 2015 Debt: Revolving Credit Facility $ 118,836 $ 145,152 Convertible Notes 85,000 85,000 Mortgages 13,662 10,333 Equipment and working capital notes 347 2,832 Capital leases 433 500 Total debt 218,278 243,817 Less: debt discount, net of accretion (7,100 ) (9,062 ) Total debt, net of unaccreted discount $ 211,178 $ 234,755 Less current portion of long-term debt (708 ) (3,187 ) Total long-term debt, net of unaccreted discount $ 210,470 $ 231,568 |
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 June 30, 2016 . Principal amount of debt $ 85,000 Unamortized discount 7,100 Carrying value of debt $ 77,900 |
Interest Expense Associated with Convertible Notes | Interest expense associated with the Convertible Notes consists of the following components. Quarter Ended June 30, 2016 June 30, 2015 Contractual coupon rate of interest $ 584 $ 586 Accretion of Convertible Notes discount and amortization of deferred financing costs 994 917 Interest expense for the convertible notes $ 1,578 $ 1,503 Year to Date Ended June 30, 2016 June 30, 2015 Contractual coupon rate of interest $ 1,169 $ 1,170 Accretion of Convertible Notes discount and amortization of deferred financing costs 1,962 1,898 Interest expense for the convertible notes $ 3,131 $ 3,068 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Stockholders' Equity Note [Abstract] | |
Company's Restricted Stock Grants | The following table sets forth the activity of the Company’s restricted stock and performance share grants in the year to date period ended June 30, 2016 : Shares Weighted-average grant date fair value Shares unvested January 1, 2016 161,010 $ 28.62 Shares granted 166,882 22.70 Shares for which restrictions lapsed (24,195 ) 24.74 Shares unvested June 30, 2016 303,697 $ 24.14 |
Restructuring, Asset Impairme31
Restructuring, Asset Impairment, and Transition Expenses (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Restructuring and Related Activities [Abstract] | |
Summary of Total Restructuring Expense | The following table details restructuring charges incurred by segment for the periods presented. Quarter Ended Year to Date Period Ended June 30, 2016 June 30, 2015 June 30, 2016 June 30, 2015 Couplings, Clutches & Brakes $ 1,089 $ 332 $ 1,493 $ 637 Electromagnetic Clutches & Brakes 345 1,368 1,017 1,367 Gearing — 887 16 2,331 Corporate 207 — 668 8 Total $ 1,641 $ 2,587 $ 3,194 $ 4,343 |
Reconciliation of Accrued Restructuring Costs | The following is a reconciliation of the accrued restructuring costs between January 1, 2016 and June 30, 2016: All Plans Balance at January 1, 2016 $ 2,211 Restructuring expense incurred 3,194 Non-cash loss on impairment of fixed assets (448 ) Cash payments (3,005 ) Balance at June 30, 2016 $ 1,952 |
Segments, Concentrations and 32
Segments, Concentrations and Geographic Information (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Segment Reporting [Abstract] | |
Reconciliation of Revenue from Segments to Consolidated | Segment financial information and a reconciliation of segment results to consolidated results follows: Quarters Ended June 30, Year to date periods Ended June 30, 2016 2015 2016 2015 Net Sales: Couplings, Clutches & Brakes $ 78,157 $ 90,351 $ 153,780 $ 179,466 Electromagnetic Clutches & Brakes 57,053 58,250 114,402 115,886 Gearing 49,096 49,611 98,015 98,817 Inter-segment eliminations (1,632 ) (1,602 ) (3,070 ) (4,198 ) Net sales $ 182,674 $ 196,610 $ 363,127 $ 389,971 Income from operations: Segment earnings: Couplings, Clutches & Brakes $ 7,554 $ 10,809 $ 13,845 $ 20,763 Electromagnetic Clutches & Brakes 7,068 6,194 13,531 11,522 Gearing 5,867 6,076 11,629 10,825 Restructuring (1,641 ) (2,587 ) (3,194 ) (4,343 ) Corporate expenses (1) (2,673 ) (2,779 ) (4,659 ) (5,401 ) Income from operations $ 16,175 $ 17,713 $ 31,152 $ 33,366 Other non-operating (income) expense: Net interest expense $ 2,904 $ 2,978 $ 5,800 $ 5,934 Other non-operating (income) expense, net (205 ) 750 (483 ) (79 ) 2,699 3,728 5,317 5,855 Income before income taxes 13,476 13,985 25,835 27,511 Provision for income taxes 4,127 4,360 7,676 8,496 Net income $ 9,349 $ 9,625 $ 18,159 $ 19,015 (1) Certain expenses are maintained at the corporate level and not allocated to the segments. These include various administrative expenses related to corporate headquarters, depreciation on capitalized software costs, non-capitalizable software implementation costs and acquisition related expenses. |
Reconciliation of Assets from Segment to Consolidated | Selected information by segment (continued) Quarter Ended Year to Date Period Ended June 30, 2016 June 30, 2015 June 30, 2016 June 30, 2015 Depreciation and amortization: Couplings, Clutches & Brakes $ 3,770 $ 4,032 $ 7,458 $ 7,996 Electromagnetic Clutches & Brakes 1,177 1,137 2,325 2,287 Gearing 1,728 1,692 3,398 3,357 Corporate 813 754 1,568 1,492 Total depreciation and amortization $ 7,488 $ 7,615 $ 14,749 $ 15,132 June 30, 2016 December 31, 2015 Total assets: Couplings, Clutches & Brakes $ 330,985 $ 312,117 Electromagnetic Clutches & Brakes 125,485 125,887 Gearing 133,168 150,860 Corporate (2) 28,345 43,468 Total assets $ 617,983 $ 632,332 (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. |
Revenue from External Customers by Geographic Areas | Net sales to third parties by geographic region are as follows : Net Sales Quarter Ended Year to Date Period Ended June 30, 2016 June 30, 2015 June 30, 2016 June 30, 2015 North America (primarily U.S.) $ 104,779 $ 119,485 $ 216,962 $ 241,795 Europe 59,237 57,032 111,351 112,072 Asia and other 18,658 20,093 34,814 36,104 Total $ 182,674 $ 196,610 $ 363,127 $ 389,971 |
Organization and Nature of Op33
Organization and Nature of Operations - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2016countryproduct | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of product lines (more than) | product | 42 |
Number of countries in which the company has production facilities | country | 12 |
Fair Value of Financial Instr34
Fair Value of Financial Instruments - Additional Information (Detail) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Fair Value, Inputs, Level 1 [Member] | Money Market Funds [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | $ 0.3 | $ 0.3 |
Convertible Notes [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Interest rate on notes (as a percent) | 2.75% | 2.75% |
Carrying amount of financial instruments | $ 85 | $ 85 |
Estimated fair value of financial instruments | $ 97.1 | $ 91.7 |
(Detail)
(Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Accumulated other comprehensive income (loss) by component, beginning balance | $ (63,832) | $ (41,415) | ||
Cumulative losses transferred from Lamiflex | (410) | |||
Net current-period Other Comprehensive Income (Loss) | $ (4,951) | $ (4,350) | (762) | (11,987) |
Accumulated other comprehensive income (loss) by component, ending balance | (64,594) | (53,812) | (64,594) | (53,812) |
Gains and Losses on Cash Flow Hedges [Member] | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Accumulated other comprehensive income (loss) by component, beginning balance | (140) | 143 | ||
Cumulative losses transferred from Lamiflex | 0 | |||
Net current-period Other Comprehensive Income (Loss) | 0 | (219) | ||
Accumulated other comprehensive income (loss) by component, ending balance | (140) | (76) | (140) | (76) |
Defined Benefit Pension Plans [Member] | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Accumulated other comprehensive income (loss) by component, beginning balance | (5,807) | (4,818) | ||
Cumulative losses transferred from Lamiflex | 0 | |||
Net current-period Other Comprehensive Income (Loss) | 148 | 0 | ||
Accumulated other comprehensive income (loss) by component, ending balance | (5,659) | (4,818) | (5,659) | (4,818) |
Cumulative Foreign Currency Translation Adjustment [Member] | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Accumulated other comprehensive income (loss) by component, beginning balance | (57,885) | (36,740) | ||
Cumulative losses transferred from Lamiflex | (410) | |||
Net current-period Other Comprehensive Income (Loss) | (910) | (11,768) | ||
Accumulated other comprehensive income (loss) by component, ending balance | $ (58,795) | $ (48,918) | $ (58,795) | $ (48,918) |
Net Income per Share - Reconcil
Net Income per Share - Reconciliation of Basic to Diluted Net Income per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Earnings Per Share [Abstract] | ||||
Net income attributable to Altra Industrial Motion Corp. | $ 9,349 | $ 9,679 | $ 18,159 | $ 19,078 |
Shares used in net income per common share - basic (in shares) | 25,699 | 26,280 | 25,699 | 26,204 |
Dilutive effect of the equity premium on Convertible Notes at the average price of common stock (in shares) | 232 | 127 | 9 | 37 |
Incremental shares of unvested restricted common stock (in shares) | 37 | 43 | 85 | 46 |
Shares used in net income per common share - diluted (in shares) | 25,968 | 26,450 | 25,793 | 26,287 |
Earnings per share: | ||||
Basic net income attributable to Altra Industrial Motion Corp. (in usd per share) | $ 0.36 | $ 0.37 | $ 0.71 | $ 0.73 |
Diluted net income attributable to Altra Industrial Motion Corp. (in usd per share) | $ 0.36 | $ 0.37 | $ 0.70 | $ 0.73 |
Inventories - Summary of Invent
Inventories - Summary of Inventories (Detail) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 35,395 | $ 34,169 |
Work in process | 12,536 | 12,864 |
Finished goods | 72,636 | 74,123 |
Inventories, net | $ 120,567 | $ 121,156 |
Goodwill and Intangible Asset38
Goodwill and Intangible Assets - Changes in Goodwill (Detail) $ in Thousands | 6 Months Ended |
Jun. 30, 2016USD ($) | |
Goodwill [Roll Forward] | |
Net goodwill, beginning balance | $ 97,309 |
Impact of changes in foreign currency and other | 457 |
Net goodwill, ending balance | 97,766 |
Couplings, Clutches and Brakes [Member] | |
Goodwill [Roll Forward] | |
Net goodwill, beginning balance | 25,290 |
Impact of changes in foreign currency and other | 195 |
Net goodwill, ending balance | 25,485 |
Electromagnetic Clutches and Brakes [Member] | |
Goodwill [Roll Forward] | |
Net goodwill, beginning balance | 24,661 |
Impact of changes in foreign currency and other | (14) |
Net goodwill, ending balance | 24,647 |
Gearing [Member] | |
Goodwill [Roll Forward] | |
Net goodwill, beginning balance | 47,358 |
Impact of changes in foreign currency and other | 276 |
Net goodwill, ending balance | $ 47,634 |
Goodwill and Intangible Asset39
Goodwill and Intangible Assets - Other Intangible Assets (Detail) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Schedule Of Finite And Indefinite Lived Intangible Assets [Line Items] | ||
Total intangible assets, cost | $ 158,622 | $ 158,082 |
Total intangible assets, accumulated amortization | 66,125 | 62,013 |
Total intangible assets, net | 92,497 | 96,069 |
Customer Relationships [Member] | ||
Schedule Of Finite And Indefinite Lived Intangible Assets [Line Items] | ||
Intangible assets subject to amortization, cost | 113,160 | 112,408 |
Total intangible assets, accumulated amortization | 60,698 | 56,677 |
Intangible assets subject to amortization, net | 52,462 | 55,731 |
Product Technology and Patents [Member] | ||
Schedule Of Finite And Indefinite Lived Intangible Assets [Line Items] | ||
Intangible assets subject to amortization, cost | 6,095 | 6,049 |
Total intangible assets, accumulated amortization | 5,427 | 5,336 |
Intangible assets subject to amortization, net | 668 | 713 |
Tradenames and Trademarks [Member] | ||
Schedule Of Finite And Indefinite Lived Intangible Assets [Line Items] | ||
Intangible assets not subject to amortization, cost | $ 39,367 | $ 39,625 |
Goodwill and Intangible Asset40
Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Goodwill And Intangible Assets [Line Items] | ||||
Amortization expense | $ 2,100 | $ 2,100 | $ 4,262 | $ 4,300 |
Estimated Amortization Expense for Intangible Assets [Member] | ||||
Goodwill And Intangible Assets [Line Items] | ||||
Remainder 2,016 | 4,000 | 4,000 | ||
Year 2,017 | 8,300 | 8,300 | ||
Year 2,018 | 8,300 | 8,300 | ||
Year 2,019 | 8,300 | 8,300 | ||
Year 2,020 | 8,300 | 8,300 | ||
Thereafter | $ 15,900 | $ 15,900 |
Warranty Costs - Additional Inf
Warranty Costs - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2016 | |
Minimum [Member] | |
Guarantor Obligations [Line Items] | |
Product warranty period | 3 months |
Maximum [Member] | |
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 | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Movement in Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross [Roll Forward] | ||
Balance at beginning of period | $ 9,468 | $ 7,792 |
Accrued current period warranty expense | 930 | 1,275 |
Payments and adjustments | (1,161) | (1,065) |
Balance at end of period | $ 9,237 | $ 8,002 |
Debt - Outstanding Debt Obligat
Debt - Outstanding Debt Obligations (Detail) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | ||
Total debt | $ 218,278 | $ 243,817 |
Less: debt discount, net of accretion | (7,100) | (9,062) |
Total debt, net of unaccreted discount | 211,178 | 234,755 |
Less current portion of long-term debt | (708) | (3,187) |
Total long-term debt, net of unaccreted discount | 210,470 | 231,568 |
Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Total debt | 118,836 | 145,152 |
Convertible Notes [Member] | ||
Debt Instrument [Line Items] | ||
Total debt | 85,000 | 85,000 |
Mortgages [Member] | ||
Debt Instrument [Line Items] | ||
Total debt | 13,662 | 10,333 |
Equipment and Working Capital Notes [Member] | ||
Debt Instrument [Line Items] | ||
Total debt | 347 | 2,832 |
Capital Leases [Member] | ||
Debt Instrument [Line Items] | ||
Total debt | $ 433 | $ 500 |
Debt - Additional Information (
Debt - Additional Information (Detail) $ / shares in Units, ¥ in Millions | Dec. 31, 2015USD ($) | Oct. 22, 2015USD ($) | Sep. 01, 2011USD ($) | Mar. 31, 2011USD ($)d$ / sharesshares | Jun. 30, 2016USD ($)d$ / shares | Jun. 30, 2016EUR (€)d | Dec. 31, 2015USD ($) | Jun. 30, 2016CNY (¥) | Jun. 30, 2016EUR (€) | Dec. 31, 2015EUR (€) | Dec. 06, 2013USD ($) | Dec. 06, 2013EUR (€) |
Debt Instrument [Line Items] | ||||||||||||
Borrowings under overdraft agreements | $ 0 | $ 0 | $ 0 | |||||||||
Line of Credit [Member] | Term Loan [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Outstanding on revolving credit facility | $ 94,000,000 | |||||||||||
Line of Credit [Member] | Additional Term Loan [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Availability under credit facility agreement | € | € 50,000,000 | |||||||||||
Convertible Debt [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument, maturity date | Mar. 1, 2031 | |||||||||||
Coupon interest rate | 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 | $ 25.84 | |||||||||||
Percentage of sale price of common stock | 130.00% | 130.00% | 130.00% | |||||||||
Number of trading days | d | 20 | 20 | ||||||||||
Number of consecutive trading days | 30 days | 30 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% | |||||||||||
Principal amount of debt | $ 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 | |||||||||||
Effective interest rate of Senior Secured Notes | 8.50% | 8.50% | 8.50% | |||||||||
Convertible Debt [Member] | Initial Conversion Price [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Conversion price per share (in usd per share) | $ / shares | $ 27.70 | |||||||||||
Convertible Debt [Member] | Minimum [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Number of trading days | d | 20 | |||||||||||
Equipment And Working Capital Notes [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Description about maturity date of debt instrument | The loan is due in installments from 2014 through 2016 | The loan is due in installments from 2014 through 2016 | The loan is due in installments from 2014 through 2016 | |||||||||
Equipment And Working Capital Notes [Member] | Changzhou, China | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Available to borrow loan amount | $ 7,600,000 | ¥ 50.5 | ||||||||||
Line of credit outstanding loan amount | $ 300,000 | ¥ 2 | ||||||||||
Equipment And Working Capital Notes [Member] | Zlate Moravce, Slovakia [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate | 1.95% | 1.95% | ||||||||||
Available to borrow loan amount | $ 3,100,000 | € 3,000,000 | ||||||||||
Equipment And Working Capital Notes [Member] | Minimum [Member] | Changzhou, China | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate | 5.40% | 5.40% | ||||||||||
Equipment And Working Capital Notes [Member] | Maximum [Member] | Changzhou, China | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate | 8.02% | 8.02% | ||||||||||
Mortgages [Member] | Heidelberg Germany [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate | 1.79% | 1.79% | ||||||||||
New mortgage amount | 1,700,000 | $ 1,700,000 | $ 1,700,000 | 1,500,000 | € 1,500,000 | |||||||
Mortgages [Member] | Esslingen Germany [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Construction loan | 6,800,000 | $ 6,700,000 | 6,800,000 | 6,000,000 | 6,000,000 | |||||||
Mortgage interest rate | 2.50% | 2.50% | ||||||||||
Monthly installments | $ 100,000 | € 100,000 | ||||||||||
Mortgages [Member] | Angers France [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate | 1.85% | 1.85% | ||||||||||
Construction loan | 2,300,000 | $ 2,200,000 | 2,300,000 | € 2,000,000 | € 2,000,000 | |||||||
Capital Leases [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Principal amount of debt | $ 500,000 | 400,000 | 500,000 | |||||||||
Prior Revolving Credit Facility [Member] | Line of Credit [Member] | Revolving Credit Facility [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Availability under credit facility agreement | $ 200,000,000 | |||||||||||
2015 Credit Agreement [Member] | Line of Credit [Member] | Revolving Credit Facility [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Availability under credit facility agreement | $ 350,000,000 | |||||||||||
Outstanding on revolving credit facility | 118,800,000 | |||||||||||
Additional expansion amount | $ 150,000,000 | |||||||||||
Amount available under credit facility | 223,300,000 | |||||||||||
2015 Credit Agreement [Member] | Line of Credit [Member] | Revolving Credit Facility [Member] | Eurodollar Loan [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Applicable margins for loans | 1.50% | |||||||||||
2015 Credit Agreement [Member] | Line of Credit [Member] | Revolving Credit Facility [Member] | Minimum [Member] | Eurodollar Loan [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Applicable margins for loans | 1.25% | |||||||||||
2015 Credit Agreement [Member] | Line of Credit [Member] | Revolving Credit Facility [Member] | Minimum [Member] | ABR Based Loans [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Applicable margins for loans | 0.25% | |||||||||||
2015 Credit Agreement [Member] | Line of Credit [Member] | Revolving Credit Facility [Member] | Maximum [Member] | Eurodollar Loan [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Applicable margins for loans | 2.00% | |||||||||||
2015 Credit Agreement [Member] | Line of Credit [Member] | Revolving Credit Facility [Member] | Maximum [Member] | ABR Based Loans [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Applicable margins for loans | 1.00% | |||||||||||
2015 Credit Agreement [Member] | Line of Credit [Member] | Letter of Credit [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Letters of credit outstanding | $ 7,000,000 | 7,900,000 | $ 7,000,000 | |||||||||
2015 Credit Agreement [Member] | Domestic Line of Credit [Member] | Revolving Credit Facility [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Outstanding on revolving credit facility | $ 106,200,000 | |||||||||||
Interest rate | 1.96% | 1.96% | ||||||||||
2015 Credit Agreement [Member] | Foreign Line of Credit [Member] | Revolving Credit Facility [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Outstanding on revolving credit facility | $ 12,600,000 | |||||||||||
Interest rate | 1.50% | 1.50% | ||||||||||
Term Loans [Member] | Line of Credit [Member] | Term Loan [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Write-off of deferred financing costs | $ 500,000 |
Debt - Carrying Amount of Debt
Debt - Carrying Amount of Debt (Detail) - USD ($) | Jun. 30, 2016 | Dec. 31, 2015 | Mar. 31, 2011 |
Debt Instrument [Line Items] | |||
Carrying value of debt | $ 210,470,000 | $ 231,568,000 | |
Convertible Debt [Member] | |||
Debt Instrument [Line Items] | |||
Principal amount of debt | 85,000,000 | $ 85,000,000 | |
Unamortized discount | 7,100,000 | ||
Carrying value of debt | $ 77,900,000 |
Debt - Interest Expense Associa
Debt - Interest Expense Associated with Convertible Notes (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Debt Disclosure [Abstract] | ||||
Contractual coupon rate of interest | $ 584 | $ 586 | $ 1,169 | $ 1,170 |
Accretion of Convertible Notes discount and amortization of deferred financing costs | 994 | 917 | 1,962 | 1,898 |
Interest expense for the convertible notes | $ 1,578 | $ 1,503 | $ 3,131 | $ 3,068 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2014 | May 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Compensation expense | $ 2.3 | $ 2.2 | ||||
Unrecognized compensation cost | 5.4 | $ 5.4 | ||||
Weighted average remaining period | 3 years | |||||
Fair market value of the shares | $ 0.6 | |||||
Stock repurchase program, authorized amount | $ 50 | |||||
Repurchases of common stock (in shares) | 80,189 | |||||
Treasury stock acquired, average cost per share (in usd per share) | $ 27.84 | |||||
Stock repurchase program, remaining authorized repurchase amount | $ 10.7 | $ 10.7 | ||||
Cash dividend declared (in usd per share) | $ 0.15 | $ 0.15 | $ 0.30 | $ 0.27 | ||
Cash dividend paid (in usd per share) | $ 0.15 | |||||
Restricted Stock [Member] | 2004 Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares subject to outstanding awards (in shares) | 750,576 | |||||
Restricted Stock [Member] | 2014 Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares of common stock available for delivery pursuant to the grant of awards (in shares) | 750,000 | |||||
Restricted shares for vesting period | 5 years |
Stockholders' Equity - Company'
Stockholders' Equity - Company's Unvested Restricted Stock Grants (Detail) | 6 Months Ended |
Jun. 30, 2016$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Shares unvested, beginning balance (in shares) | shares | 161,010 |
Shares granted (in shares) | shares | 166,882 |
Shares for which restrictions lapsed (in shares) | shares | (24,195) |
Shares unvested, ending balance (in shares) | shares | 303,697 |
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 | $ 28.62 |
Weighted-average grant date fair value, shares granted (in usd per share) | $ / shares | 22.70 |
Weighted-average grant date fair value, shares for which restrictions lapsed (in usd per share) | $ / shares | 24.74 |
Weighted-average grant date fair value, ending balance (in usd per share) | $ / shares | $ 24.14 |
Restructuring, Asset Impairme49
Restructuring, Asset Impairment, and Transition Expenses - Summary of Total Restructuring Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | $ 1,641 | $ 2,587 | $ 3,194 | $ 4,343 |
Severance [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | 1,600 | |||
Consolidation costs [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | 600 | |||
Moving and relocation [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | 400 | |||
Building impairments [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | 100 | |||
Travel-related and other restructuring costs [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | 500 | |||
Minimum [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Expected restructuring cost remaining | 7,000 | 7,000 | ||
Maximum [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Expected restructuring cost remaining | 9,000 | 9,000 | ||
Couplings, Clutches and Brakes [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | 1,089 | 332 | 1,493 | 637 |
Electromagnetic Clutches and Brakes [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | 345 | 1,368 | 1,017 | 1,367 |
Gearing [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | 0 | 887 | 16 | 2,331 |
Corporate [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | $ 207 | $ 0 | $ 668 | $ 8 |
Restructuring, Asset Impairme50
Restructuring, Asset Impairment, and Transition Expenses - Reconciliation of Accrued Restructuring Costs (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Restructuring Reserve [Roll Forward] | ||||
Beginning Balance | $ 2,211 | |||
Restructuring expense incurred | $ 1,641 | $ 2,587 | 3,194 | $ 4,343 |
Non-cash loss on impairment of fixed assets | (448) | |||
Cash payments | (3,005) | |||
Ending Balance | $ 1,952 | $ 1,952 |
Segments, Concentrations and 51
Segments, Concentrations and Geographic Information (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2016USD ($)customer | Jun. 30, 2015USD ($)customer | Jun. 30, 2016USD ($)segment | Jun. 30, 2015USD ($) | Dec. 31, 2015USD ($) | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Number of business segments | segment | 3 | |||||
Net sales | $ 182,674 | $ 196,610 | $ 363,127 | $ 389,971 | ||
Income from operations | 16,175 | 17,713 | 31,152 | 33,366 | ||
Restructuring | (1,641) | (2,587) | (3,194) | (4,343) | ||
Net interest expense | 2,904 | 2,978 | 5,800 | 5,934 | ||
Other non-operating (income) expense, net | (205) | 750 | (483) | (79) | ||
Total other non-operating expense, net | 2,699 | 3,728 | 5,317 | 5,855 | ||
Income before income taxes | 13,476 | 13,985 | 25,835 | 27,511 | ||
Provision for income taxes | 4,127 | 4,360 | 7,676 | 8,496 | ||
Net income | 9,349 | 9,625 | 18,159 | 19,015 | ||
Total depreciation and amortization | 7,488 | $ 7,615 | 14,749 | 15,132 | ||
Total assets | $ 617,983 | 617,983 | $ 632,332 | |||
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Number of major customers | customer | 0 | 0 | ||||
Couplings, Clutches and Brakes [Member] | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Restructuring | $ (1,089) | $ (332) | (1,493) | (637) | ||
Electromagnetic Clutches and Brakes [Member] | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Restructuring | (345) | (1,368) | (1,017) | (1,367) | ||
Gearing [Member] | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Restructuring | 0 | $ (887) | (16) | (2,331) | ||
Gearing [Member] | Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Number of major customers | customer | 1 | |||||
Concentration risk (as percent) | 10.10% | |||||
Corporate [Member] | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Income from operations | [1] | (2,673) | $ (2,779) | (4,659) | (5,401) | |
Restructuring | (207) | 0 | (668) | (8) | ||
Total depreciation and amortization | 813 | 754 | 1,568 | 1,492 | ||
Total assets | [2] | 28,345 | 28,345 | $ 43,468 | ||
Operating Segments [Member] | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Restructuring | (1,641) | (2,587) | (3,194) | (4,343) | ||
Operating Segments [Member] | North America (primarily U.S.) [Member] | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Net sales | 104,779 | 119,485 | 216,962 | 241,795 | ||
Operating Segments [Member] | Europe [Member] | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Net sales | 59,237 | 57,032 | 111,351 | 112,072 | ||
Operating Segments [Member] | Asia And Other [Member] | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Net sales | 18,658 | 20,093 | 34,814 | 36,104 | ||
Operating Segments [Member] | Couplings, Clutches and Brakes [Member] | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Net sales | 78,157 | 90,351 | 153,780 | 179,466 | ||
Income from operations | 7,554 | 10,809 | 13,845 | 20,763 | ||
Total depreciation and amortization | 3,770 | 4,032 | 7,458 | 7,996 | ||
Total assets | 330,985 | 330,985 | 312,117 | |||
Operating Segments [Member] | Electromagnetic Clutches and Brakes [Member] | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Net sales | 57,053 | 58,250 | 114,402 | 115,886 | ||
Income from operations | 7,068 | 6,194 | 13,531 | 11,522 | ||
Total depreciation and amortization | 1,177 | 1,137 | 2,325 | 2,287 | ||
Total assets | 125,485 | 125,485 | 125,887 | |||
Operating Segments [Member] | Gearing [Member] | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Net sales | 49,096 | 49,611 | 98,015 | 98,817 | ||
Income from operations | 5,867 | 6,076 | 11,629 | 10,825 | ||
Total depreciation and amortization | 1,728 | 1,692 | 3,398 | 3,357 | ||
Total assets | 133,168 | 133,168 | $ 150,860 | |||
Intersegment Eliminations [Member] | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Net sales | $ (1,632) | $ (1,602) | $ (3,070) | $ (4,198) | ||
[1] | Certain expenses are maintained at the corporate level and not allocated to the segments. These include various administrative expenses related to corporate headquarters, depreciation on capitalized software costs, non-capitalizable software implementation costs and acquisition related expenses. | |||||
[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. |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Commitments and Contingencies Disclosure [Abstract] | ||
Loss Contingency Accrual | $ 0 | $ 0 |
Subsequent Events (Details)
Subsequent Events (Details) - $ / shares | Jul. 20, 2016 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 |
Subsequent Event [Line Items] | |||||
Cash dividend declared (in usd per share) | $ 0.15 | $ 0.15 | $ 0.30 | $ 0.27 | |
Subsequent event [Member] | |||||
Subsequent Event [Line Items] | |||||
Cash dividend declared (in usd per share) | $ 0.15 |