Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Feb. 28, 2018 | Jun. 30, 2017 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | TPIC | ||
Entity Registrant Name | TPI COMPOSITES, INC | ||
Entity Central Index Key | 1,455,684 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 34,032,946 | ||
Entity Public Float | $ 259 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 148,113 | $ 119,066 |
Restricted cash | 3,849 | 2,259 |
Accounts receivable (Note 3) | 121,576 | 67,842 |
Inventories | 67,064 | 53,095 |
Inventories held for customer orders | 64,858 | 52,308 |
Prepaid expenses and other current assets | 27,507 | 30,657 |
Total current assets | 432,967 | 325,227 |
Property, plant and equipment, net | 123,480 | 91,166 |
Goodwill | 2,807 | 2,807 |
Intangible assets, net | 150 | 265 |
Other noncurrent assets | 14,130 | 17,741 |
Total assets | 573,534 | 437,206 |
Current liabilities: | ||
Accounts payable and accrued expenses | 166,743 | 112,281 |
Accrued warranty | 29,163 | 19,912 |
Deferred revenue | 81,048 | 69,568 |
Customer deposits | 10,134 | 1,390 |
Current maturities of long-term debt | 35,506 | 33,403 |
Total current liabilities | 322,594 | 236,554 |
Long-term debt, net of debt issuance costs and current maturities | 85,879 | 89,752 |
Other noncurrent liabilities | 4,444 | 4,393 |
Total liabilities | 412,917 | 330,699 |
Commitments and contingencies (Note 14) | ||
Stockholders’ equity: (Note 3) | ||
Common shares, $0.01 par value, 100,000 shares authorized and 34,049 shares issued and 34,021 shares outstanding at December 31, 2017; 100,000 shares authorized and 33,737 shares issued and outstanding at December 31, 2016 | 340 | 337 |
Paid-in capital | 301,543 | 292,833 |
Accumulated other comprehensive loss | (558) | (3,862) |
Accumulated deficit | (140,197) | (182,801) |
Treasury stock, at cost, 28 shares at December 31, 2017; no shares at December 31, 2016 | (511) | |
Total stockholders’ equity | 160,617 | 106,507 |
Total liabilities and stockholders’ equity | $ 573,534 | $ 437,206 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2017 | Dec. 31, 2016 |
Statement Of Financial Position [Abstract] | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 34,049,000 | 33,737,000 |
Common stock, shares outstanding | 34,021,000 | 33,737,000 |
Treasury stock, shares | 28,000 | 0 |
Consolidated Income Statements
Consolidated Income Statements - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Statement [Abstract] | |||
Net sales (Note 3) | $ 930,281 | $ 754,877 | $ 585,852 |
Cost of sales | 776,944 | 659,745 | 528,247 |
Startup and transition costs | 40,628 | 18,127 | 15,860 |
Total cost of goods sold | 817,572 | 677,872 | 544,107 |
Gross profit | 112,709 | 77,005 | 41,745 |
General and administrative expenses | 40,373 | 33,892 | 14,126 |
Income from operations | 72,336 | 43,113 | 27,619 |
Other income (expense): | |||
Interest income | 95 | 344 | 161 |
Interest expense | (12,381) | (17,614) | (14,565) |
Loss on extinguishment of debt | (4,487) | ||
Realized loss on foreign currency remeasurement | (4,471) | (757) | (1,802) |
Miscellaneous income | 1,191 | 238 | 246 |
Total other expense | (15,566) | (22,276) | (15,960) |
Income before income taxes | 56,770 | 20,837 | 11,659 |
Income tax provision | (13,080) | (6,995) | (3,977) |
Net income | 43,690 | 13,842 | 7,682 |
Net income attributable to preferred stockholders | 5,471 | 9,423 | |
Net income (loss) attributable to common stockholders | $ 43,690 | $ 8,371 | $ (1,741) |
Weighted-average common shares outstanding: | |||
Basic | 33,844 | 17,530 | 4,238 |
Diluted | 34,862 | 17,616 | 4,238 |
Net income (loss) per common share: | |||
Basic | $ 1.29 | $ 0.48 | $ (0.41) |
Diluted | $ 1.25 | $ 0.48 | $ (0.41) |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Net income | $ 43,690 | $ 13,842 | $ 7,682 |
Other comprehensive income (loss): | |||
Foreign currency translation adjustments | 3,304 | (3,837) | (2,363) |
Comprehensive income | $ 46,994 | $ 10,005 | $ 5,319 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity (Deficit) - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock [Member] | Common Stock [Member]Subordinated Debt [Member] | Common Stock [Member]Convertible Preferred Stock [Member] | Common Stock [Member]Series B Warrants [Member] | Paid-in Capital [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Accumulated Deficit [Member] | Treasury Stock, at Cost [Member] |
Beginning balance at Dec. 31, 2014 | $ (187,093) | $ 2,338 | $ (189,431) | ||||||
Beginning balance, shares at Dec. 31, 2014 | 4,238 | ||||||||
Net income | 7,682 | 7,682 | |||||||
Other comprehensive loss | (2,363) | (2,363) | |||||||
Redeemable preferred shares fair value adjustment | (9,423) | (9,423) | |||||||
Ending balance at Dec. 31, 2015 | (191,197) | (25) | (191,172) | ||||||
Ending balance, shares at Dec. 31, 2015 | 4,238 | ||||||||
Net income | 13,842 | 13,842 | |||||||
Other comprehensive loss | (3,837) | (3,837) | |||||||
Redeemable preferred shares fair value adjustment | (5,471) | (5,471) | |||||||
Issuance of common stock sold in initial public offering (IPO), net of under-writers discount and offering costs | 67,199 | $ 72 | $ 67,127 | ||||||
Issuance of common stock sold in initial public offering (IPO), net of under-writers discount and offering costs, shares | 7,188 | ||||||||
Conversion of convertible preferred shares into common stock upon consummation of IPO | 203,246 | $ 253 | 202,993 | ||||||
Conversion of convertible preferred stock into common stock upon consummation of IPO, shares | 21,110 | ||||||||
Conversion of subordinated convertible promissory notes into common stock upon consummation of IPO | 11,877 | 11 | 11,866 | ||||||
Conversion of subordinated convertible promissory notes into common stock upon consummation of IPO, shares | 1,080 | ||||||||
Conversion of redeemable preferred share warrants into common stock upon consummation of IPO | 1,084 | 1 | 1,083 | ||||||
Conversion of redeemable preferred share warrants into common stock upon consummation of IPO, shares | 121 | ||||||||
Share-based compensation expense | 9,764 | 9,764 | |||||||
Ending balance at Dec. 31, 2016 | 106,507 | $ 337 | 292,833 | (3,862) | (182,801) | ||||
Ending balance, shares at Dec. 31, 2016 | 33,737 | ||||||||
Cumulative-effect adjustment of the adoption of ASU 2016-09 on January 1, 2017 | ASU 2016-09 [Member] | (14) | 1,072 | (1,086) | ||||||
Net income | 43,690 | 43,690 | |||||||
Other comprehensive loss | 3,304 | 3,304 | |||||||
Common stock repurchased | (1,264) | $ (1,264) | |||||||
Issuances under share-based compensation plan | 1,430 | $ 3 | 674 | 753 | |||||
Issuances under share-based compensation plan, shares | 312 | ||||||||
Share-based compensation expense | 6,964 | 6,964 | |||||||
Ending balance at Dec. 31, 2017 | $ 160,617 | $ 340 | $ 301,543 | $ (558) | $ (140,197) | $ (511) | |||
Ending balance, shares at Dec. 31, 2017 | 34,049 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash flows from operating activities: | |||
Net income | $ 43,690 | $ 13,842 | $ 7,682 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 20,878 | 12,897 | 11,416 |
Share-based compensation expense | 7,124 | 9,902 | |
Amortization of debt issuance costs and debt discount | 573 | 4,681 | 4,319 |
Loss on extinguishment of debt | 4,487 | ||
Loss on disposal of property and equipment | 334 | 2 | 187 |
Deferred income taxes | (1,068) | (2,782) | (765) |
Changes in assets and liabilities: | |||
Accounts receivable | (53,734) | 5,071 | (29,652) |
Inventories | (26,519) | (4,967) | (626) |
Prepaid expenses and other current assets | 3,150 | 681 | (10,978) |
Other noncurrent assets | 7,487 | (8,291) | 4,204 |
Accounts payable and accrued expenses | 51,248 | 14,959 | 34,423 |
Accrued warranty | 9,251 | 6,316 | 7,680 |
Customer deposits | 8,744 | (7,515) | (3,193) |
Deferred revenue | 11,480 | 4,048 | 6,044 |
Other noncurrent liabilities | 25 | 510 | 552 |
Net cash provided by operating activities | 82,663 | 53,841 | 31,293 |
Cash flows from investing activities: | |||
Purchases of property, plant and equipment | (44,828) | (30,507) | (26,361) |
Proceeds from sale of assets | 850 | 146 | |
Net cash used in investing activities | (43,978) | (30,507) | (26,215) |
Cash flows from financing activities: | |||
Proceeds from issuance of common stock sold in initial public offering, net of underwriters discount and offering costs | 67,199 | ||
Proceeds from term loans | 20,000 | ||
Repayments of term loans | (3,750) | (930) | (625) |
Net repayments of accounts receivable financing | (1,020) | (5,385) | (2,472) |
Proceeds from working capital loans | 9,936 | 15,813 | 11,690 |
Repayments of working capital loans | (14,574) | (20,103) | (24,262) |
Proceeds from (repayments of) other debt | 1,313 | (4,765) | (2,777) |
Proceeds from customer advances | 2,000 | ||
Repayments of customer advances | (2,000) | ||
Debt issuance costs | (454) | (1,113) | |
Proceeds from exercise of stock options | 1,430 | ||
Repurchase of common stock including shares withheld in lieu of income taxes | (1,264) | ||
Payment on acquisition of noncontrolling interest | (1,875) | ||
Restricted cash | (1,590) | (499) | (989) |
Net cash provided by (used in) financing activities | (9,973) | 51,330 | (2,423) |
Impact of foreign exchange rates on cash and cash equivalents | 335 | (1,515) | (330) |
Net change in cash and cash equivalents | 29,047 | 73,149 | 2,325 |
Cash and cash equivalents, beginning of year | 119,066 | 45,917 | 43,592 |
Cash and cash equivalents, end of year | 148,113 | 119,066 | 45,917 |
Supplemental disclosures of cash flow information: | |||
Cash paid for interest | 11,803 | 11,126 | 9,439 |
Cash paid for income taxes, net | 17,263 | 8,506 | 3,087 |
Supplemental disclosures of noncash investing and financing activities: | |||
Conversion of subordinated convertible promissory notes into common stock | 11,877 | ||
Accrued capital expenditures in accounts payable | 5,725 | 2,664 | 1,860 |
Equipment acquired through capital lease and financing obligations | $ 6,206 | 10,011 | 5,004 |
Customer advances applied to accounts receivable | $ 1,171 | ||
Debt refinance and related fees | $ 2,163 |
Summary of Operations and Signi
Summary of Operations and Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Summary of Operations and Significant Accounting Policies | Note 1. Summary of Operations and Significant Accounting Policies (a) Description of Business and Basis of Presentation TPI Composites, Inc. is the holding company that conducts substantially all of its business operations through its direct and indirect subsidiaries (collectively, the Company). The Company was founded in 1968 and has been producing composite wind blades since 2001. The Company’s knowledge and experience of composite materials and manufacturing originates with its predecessor company, Tillotson Pearson Inc., a leading manufacturer of high-performance sail and powerboats along with a wide range of composite structures used in other industrial applications. Following the separation from the boat building business in 2004, the Company reorganized in Delaware as LCSI Holding, Inc. and then changed its corporate name to TPI Composites, Inc. in 2008. Today, the Company is headquartered in Scottsdale, Arizona and has expanded its global footprint to include domestic facilities in Newton, Iowa; Fall River, Massachusetts; Warren, Rhode Island and Santa Teresa, New Mexico and international facilities in Dafeng, China; Taicang Port, China; Taicang City, China; Juárez, Mexico, Matamoros, Mexico, Izmir, Turkey and Kolding, Denmark. The Company divides its business operations into four geographic operating segments—the United States, Asia, Mexico and Europe, the Middle East and Africa (EMEA), as follows: • The U.S. segment includes (1) the manufacturing of wind blades at the Newton, Iowa plant, (2) the manufacturing of precision molding and assembly systems used for the manufacture of wind blades at the Warren, Rhode Island facility, (3) the manufacturing of composite solutions for the transportation industry, which the Company also conducts at its existing Rhode Island and Massachusetts facilities, (4) our advanced engineering center in Kolding, Denmark, which provides technical and engineering resources to our manufacturing facilities and (5) our corporate headquarters, the costs of which are included in general and administrative expenses. In January 2018, the Company entered into a new lease agreement with a third party for a new manufacturing facility in Newton, Iowa and they expect to commence operations at this facility in the first half of 2018. • The Asia segment includes (1) the manufacturing of wind blades at the facility in Taicang Port, China and at its two facilities in Dafeng, China, (2) the manufacturing of precision molding and assembly systems at the Taicang City, China facility, (3) the manufacture of components at the second Taicang Port, China facility and (4) wind blade inspection and repair services. • The Mexico segment manufactures wind blades from its three facilities in Juárez, Mexico, the most recent of which commenced operations in January 2017. In April 2017, the Company entered into a new lease agreement with a third party for a new manufacturing facility in Matamoros, Mexico and they expect to commence operations at this facility in the second half of 2018. • The EMEA segment manufactures wind blades from its two facilities in Izmir, Turkey. The Company entered into a joint venture in 2012 to produce wind blades at the first Turkey plant and in 2013 became the sole owner of the Turkey operation with the acquisition of the remaining 25% interest. The EMEA segment commenced operations at its second facility during the third quarter of 2016. The accompanying consolidated financial statements include the accounts of TPI Composites, Inc. and all majority owned subsidiaries. All significant intercompany transactions and balances have been eliminated. (b) Public Offerings and Stock Split In July 2016, the Company completed an initial public offering (IPO) of 7,187,500 shares of its common stock at a price of $11.00 per share, which included 937,500 shares issued pursuant to the underwriters’ over-allotment option. Certain of the Company’s existing stockholders, a non-employee director and executive officers purchased an aggregate of 1,250,000 shares of common stock in the IPO included in the total issuance above. The net proceeds from the IPO were $67.2 million after deducting underwriting discounts and offering expenses. Immediately prior to the closing of the IPO, all shares of the then-outstanding redeemable preferred shares converted into an aggregate of 21,110,204 shares of common stock and the redeemable preferred share warrants converted on a net issuance basis into 120,923 shares of common stock. In addition, concurrent with the closing of the IPO, certain subordinated convertible promissory notes in the aggregate principal and interest amount of $11.9 million were converted into 1,079,749 shares of common stock at the public offering price of $11.00 per share. Prior to the IPO, in July 2016 the Company amended its amended and restated certificate of incorporation to effect a 360-for-1 forward stock split of its common stock. As a result of the stock split, the Company has adjusted the share amounts authorized and issuable under the share-based compensation plans. All share and per share common stock information (including the share-based compensation plans) referenced throughout the consolidated financial statements and notes thereto have been retroactively adjusted to reflect this stock split. The stock split did not cause an adjustment to the par value of the authorized shares of common stock. In May 2017, the Company completed a secondary public offering of 5,075,000 shares of its common stock at a price of $16.35 per share, which included 575,000 shares issued pursuant to the underwriters’ option to purchase additional shares. All of the shares were sold by existing stockholders and certain of the Company’s executive officers. The selling stockholders received all of the net proceeds of $78.8 million from the secondary public offering. The Company did not sell any shares and did not receive any of the proceeds from the offering and the costs paid by the Company in connection with the offering of $0.8 million were recorded in general and administrative costs in the accompanying consolidated income statement. (c) Revenue Recognition The Company records when The precision As these items The Company’s customers Wind blade pricing (d) Cost of Goods Sold Cost of goods sold includes the costs associated with products invoiced during the period as well as unallocated manufacturing overhead costs associated with startup and transition costs. Cost of sales includes all costs incurred at our production facilities to make products saleable, such as raw materials, direct labor and indirect labor and facilities costs, including purchasing and receiving costs, plant management, inspection costs, product engineering and internal transfer costs. In addition, all depreciation associated with assets used to produce composite products and make them saleable is included in cost of sales. Direct labor costs consist of salaries, benefits and other personnel related costs for employees engaged in the manufacture of our products. Startup costs represent the unallocated overhead related to both new manufacturing facilities as well as new lines in existing manufacturing facilities. Transition costs represent the unallocated overhead related to the transition of wind blade models at the request of our customers. The startup and transition costs are primarily fixed overhead costs incurred during the period production facilities are under-utilized while transitioning wind blade models and ramping up manufacturing, which are not allocated to products and are expensed as incurred. The cost of sales for the initial wind blades from a new model manufacturing line is generally higher than when the line is operating at optimal production volume levels due to inefficiencies during ramp-up related to labor hours per blade, cycle times per blade and raw material usage. Additionally, manufacturing overhead as a percentage of net sales is generally higher during the period in which a facility is ramping up to full production capacity due to underutilization of the facility. Manufacturing overhead at each of our facilities includes virtually all indirect costs (including share-based compensation costs) incurred at the plants, including engineering, finance, information technology, human resources and plant management. (e) General and Administrative Expense General and administrative expenses are primarily incurred at the Company’s corporate headquarters and research facilities and include salaries, benefits and other personnel related costs for employees engaged in research and development, engineering, finance, information technology, human resources, business development, global operational excellence, global supply chain, in-house legal and executive management. Other costs include outside legal and accounting fees, risk management (insurance), share-based compensation and certain other administrative and global resources costs. For the years ended December 31, 2017, 2016 and 2015, total research and development expenses not performed at our manufacturing facilities (included in general and administrative expenses) totaled $1.6 million, $1.5 million and $0.9 million, respectively. (f) Cash and Cash Equivalents and Restricted Cash Cash and cash equivalents include highly liquid investments that are readily convertible to known amounts of cash with original maturities of three months or less. The carrying value of cash and cash equivalents approximates fair value. As of December 31, 2017 and 2016, the Taicang plants had unrestricted cash of $42.8 million and $8.3 million, respectively, in bank accounts in China. As of December 31, 2017 and 2016, the Dafeng plant had unrestricted cash of $3.5 million and $4.0 million, respectively, in bank accounts in China. The Chinese government imposes certain restrictions on transferring cash out of China. The local governments in Turkey and Mexico impose no such restrictions on transferring cash out of the respective country. As of December 31, 2017, the Company had provided for cash deposits for letters of guarantee used for customs clearance related to our China locations totaling $3.8 million. As of December 31, 2016, the Company has provided fully cash-collateralized letters of credit in connection with certain facility leases and with one of the Company’s workers’ compensation providers totaling $2.3 million. These amounts are reported as restricted cash in the Company’s consolidated balance sheets. As of December 31, 2017, the Company maintained a long-term deposit in interest bearing accounts, related to fully cash-collateralized letters of credit in connection an equipment lessor in Iowa, totaling $0.5 million. As of December 31, 2016, the Company maintained long-term deposits in interest bearing accounts, related to fully cash-collateralized letters of credit in connection with the facility leases at our Mexico locations and an equipment lessor in Iowa, totaling $8.5 million. See Note 9, Other Noncurrent Assets. (g) Accounts Receivable Trade accounts receivable are recorded at the invoiced amount and generally do not bear interest. The Company follows the allowance method of recognizing uncollectible accounts receivable, which recognizes bad debt expense based on a review of the individual accounts outstanding and prior history of uncollectible accounts receivable. Credit is extended based on evaluation of each customer’s financial condition and is generally unsecured. Accounts receivable are generally due within 30 days and are stated net of an allowance for doubtful accounts in the consolidated balance sheets. Accounts are considered past due if outstanding longer than contractual payment terms. The Company records an allowance based on consideration of a number of factors, including the length of time trade accounts are past due, previous loss history, the credit-worthiness of individual customers, economic conditions affecting specific customer industries, and economic conditions in general. The Company charges-off accounts receivable after all reasonable collection efforts have been exhausted. The Company credits payments subsequently received on such receivables to bad debt expense in the period payment is received. The Company records delinquent finance charges on outstanding accounts receivables only if they are collected. The Company wrote off $0.2 million during 2017, $0.5 million during 2016 and did not write off any material amounts due during 2015, and does not have any off-balance-sheet credit exposure related to its customers. See Note 4, Accounts Receivable. (h) Inventories Inventories are measured at the lower of cost or net realizable value. Net realizable value is defined as the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Cost is determined using the first-in, first-out method for raw materials and specific identification for work in process and finished goods inventories. Actual cost includes the cost of materials, direct labor, and applied manufacturing overhead. Write-downs to reduce the carrying cost of obsolete, slow-moving, and unusable inventory to net realizable value are recognized in cost of goods sold. The effect of these write-downs establishes a new cost basis in the related inventory, which is not subsequently written up. See Note 5, Inventories (i) Property, Plant and Equipment Property, plant and equipment are stated at cost. Depreciation and amortization of property, plant, and equipment is calculated on the straight-line method over the estimated useful lives of the assets. See Note 7, Property, Plant and Equipment, Net. Estimated useful lives Machinery and equipment 7–10 years Buildings 20 years Leasehold improvements 5 to 10 years, or the term of the lease, if shorter Office equipment and software 3 to 5 years Furniture 5 years Vehicles 5 years (j) Recoverability of Long-Lived Assets The Company reviews property, plant and equipment and other long-lived assets in order to assess recoverability based on expected future undiscounted cash flows whenever events or circumstances indicate that the carrying value may not be recoverable. If the sum of the expected future net cash flows is less than the carrying value, an impairment loss is recognized. The impairment loss is measured as the amount by which the carrying value exceeds the fair value of the asset. (k) Goodwill and Intangible Assets Goodwill represents the excess of the acquisition cost of Composite Solutions, Inc. from True North Partners, LLC in 2004 over the fair value of identifiable assets acquired and liabilities assumed. Goodwill, which is entirely in the U.S. segment, is evaluated for impairment annually on October 31 and whenever events or circumstances make it likely that impairment may have occurred. In determining whether impairment has occurred, the Company uses a two-step approach. Step one compares the fair value of the related reporting unit (calculated using the discounted cash flow method) to its carrying value. If the carrying value exceeds the fair value, there is a potential impairment and step two must be performed. Step two compares the carrying value of the reporting unit’s goodwill to its implied fair value (i.e., fair value of reporting unit less the fair value of the unit’s assets and liabilities, including identifiable intangible assets). If the implied fair value of goodwill is less than the carrying amount of goodwill, impairment is recognized for that difference. The Company may Intangible assets were acquired in a business acquisition and provide contractual or legal rights, or other future benefits that could be separately identified. The Company’s valuation of identified intangible assets was based upon discounted cash flow estimates that require significant management judgment with respect to revenue and expense growth rates, changes in working capital, and the selection and use of the appropriate discount rate. The intangible assets are amortized over their estimated useful life. Intangible assets with indefinite lives are evaluated at least annually for impairment or whenever events or circumstances make it likely that impairment may have occurred. See Note 8, Intangible Assets, Net. (l) Warranty Expense The Company provides a limited warranty for its mold and wind blade products, including parts and labor, with terms and conditions that vary depending on the product sold, generally for periods that range from two to five years. Warranty expense is recorded based upon estimates of future repairs using a probability-based methodology that considers previous warranty claims, identified quality issues and industry practices. Once the warranty period has expired, any remaining unused warranty accrual for the specific products is reversed against the current year warranty expense amount. See Note 10, Accrued Warranty (m) Foreign Currency Translation Adjustments The reporting currency of the Company is the U.S. dollar. However, the Company has non-U.S. operating segments in Mexico, Turkey and China. • The U.S. parent companies of the four Mexico operations, each of which are wholly-owned subsidiaries of TPI Composites, Inc., maintain their books and records in U.S. dollars. • The Mexico operations maintain their books and records through multiple legal entities that are denominated in the local Mexican currency, the Peso. • The Turkey operations maintain their books and records in the local Turkish currency, the Lira. • The U.S. parent company of the China operations and a wholly-owned subsidiary of TPI Composites, Inc., maintains its books and records in U.S. dollars. • The China operations maintain their books and records in the local Chinese currency, the Renminbi. Foreign currency-denominated assets and liabilities are translated into U.S. dollars at exchange rates existing at the respective balance sheet dates. Results of operations of foreign subsidiaries are translated at the average exchange rates during the respective periods. Foreign currency transaction gains and losses are reported in realized loss on foreign currency remeasurement in the Company’s consolidated income statements. Translation adjustments are reported in accumulated other comprehensive loss in the Company’s consolidated balance sheets. Currency translation adjustments for the years ended December 31, 2017, 2016 and 2015 amounted to a gain of $3.3 million and losses of $3.8 million and $2.4 million, respectively. (n) Share-Based Compensation The Company maintains two active incentive compensation plans: the 2008 Stock Option and Grant Plan and the Amended and Restated 2015 Stock Option and Incentive Plan (the 2015 Plan). In May 2015, the Company’s board of directors and stockholders adopted and approved the 2015 Plan, which provides for the issuance of incentive stock options, non-qualified stock options, stock appreciation rights, restricted stock units, restricted stock awards, unrestricted stock awards, cash-based awards, performance share awards and dividend equivalent rights to certain employees, non-employee directors and consultants. The term of stock options issued under the 2015 Plan may not exceed ten years from the date of grant. Under the 2015 Plan, incentive stock options and non-qualified stock options are granted at an exercise price that is not to be less than 100% of the fair market value of the common stock of the Company on the date of grant, as determined by the Compensation Committee of the board of directors. Stock options become vested and exercisable at such times and under such conditions as determined by the Compensation Committee on the date of grant. Upon approval of the 2015 Plan, no future grants will be made from the 2008 Stock Option and Grant Plan. The Company measures share-based compensation expense for stock options using the estimated fair value of the related award on the date of grant using the Black-Scholes valuation model as of the grant date using the following assumptions: Expected Volatility . As the Company’s common stock had not been publicly traded prior to July 2016, the expected volatility assumption reflects an average of volatilities of publicly traded peer group companies with a period equal to the expected life of the options. Expected Life (years) . The Company uses the simplified method to estimate the expected term of stock options. The simplified method for estimating expected term is to use the mid-point between the vesting term and the contractual term of the option. The Company elected to use the simplified method because it did not have historical exercise data to estimate the expected term due to the limited time period its common stock had been publicly traded. Risk-Free Interest Rate . The risk-free interest rate assumption is based upon the U.S. constant maturity treasury rates as the risk-free rate interpolated between the years commensurate with the expected life of the options. Dividend Yield . The dividend yield assumption is zero since the Company does not expect to declare or pay dividends in the foreseeable future. Forfeitures. Share-based compensation expense is reversed when the service-based award is forfeited. Expected Vesting Period . The Company amortizes the share-based compensation expense over the requisite service period. Share-based compensation expense related to restricted stock units is expensed over the vesting period using the straight-line method for Company employees and the Company’s board of directors. The restricted stock units do not have voting rights. The Company calculates the fair value of share-based awards on the date of grant for employees and directors. The Company calculates the fair value of share-based awards to consultants on the date of vesting. (o) Leases Leases are classified as either operating leases or capital leases. Assets acquired under capital leases are amortized on the same basis as similar property, plant and equipment. Rental payments, including rent holidays, leasehold incentives, and scheduled rent increases are expensed on a straight-line basis over the lease term including any applicable renewals. Leasehold improvements are amortized over the shorter of the depreciable lives of the corresponding fixed assets or the lease term including any applicable renewals. (p) Income Taxes Income taxes are accounted for under the asset and liability method in accordance with Financial Accounting Standards Board (FASB) Accounting Standard Codification (ASC) Topic 740, Income Taxes Income Taxes. (q) Net Income Attributable to Preferred Stockholders Net income attributable to preferred stockholders relates to the accrual of dividends on the Company’s convertible and senior redeemable preferred shares, the accretion to redemption amounts on its convertible preferred shares and warrant fair value adjustment. Immediately prior to the closing of our IPO, all preferred shares were converted into shares of the Company’s common stock and as a result, the accrual of dividends ceased. (r) Net Income (Loss) Per Share Calculation The basic net income (loss) per common share is computed by dividing the net income (loss) by the weighted-average number of common shares outstanding during a period. Diluted net income per common share is computed by dividing the net income, adjusted on an as-if-converted basis, by the weighted-average number of common shares outstanding plus potentially dilutive securities. The table below reflects the calculation of the weighted-average number of common shares outstanding, on an as if converted basis, used in computing basic and diluted earnings per common share for the years ended December 31: 2017 2016 2015 (in thousands) Basic weighted-average shares outstanding 33,844 17,530 4,238 Effect of dilutive stock options and warrants 1,018 86 — Diluted weighted-average shares outstanding 34,862 17,616 4,238 The Company did not have potential dilutive securities that are not included in the diluted net income per share calculation for the years ended December 31, 2017 and 2016. The Company had potentially dilutive securities of 4,571,007 outstanding for the year ended December 31, 2015 that are not shown in the diluted net loss per share calculation because their effect would be anti-dilutive. The potentially dilutive securities excluded from the calculation include common shares issued upon conversion or exercise of options and warrants. (s) Use of Estimates The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant items subject to such estimates and assumptions include the useful lives of property, plant and equipment, realizability of intangible assets and deferred tax assets, inventory valuation, relative selling prices for revenue recognition, fair value of stock options and warrants, warranty reserves and other contingencies. (t) Fair Value of Financial Instruments FASB ASC Topic 820, Fair Value Measurements 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 that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and Level 3: Valuation is generated from model-based techniques that use significant assumptions not observable in the market. These unobservable assumptions reflect the Company’s own estimate of assumptions that market participants would use in pricing the asset or liability. The carrying amounts of cash and cash equivalents, trade accounts receivable, income taxes receivable, accounts payable and accrued expenses and income taxes payable approximate fair value because of the short-term nature of these financial instruments. The carrying amount of working capital loans approximates fair value due to their short term nature and the loans carry a current market rate of interest, a level 2 input. The carrying value of long-term debt approximates fair value based on its variable rate index or based upon market interest rates available to the Company for debt of similar risk and maturities, both of which are level 2 inputs. (u) Recently Issued Accounting Pronouncements Revenue from Contracts with Customers In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers The new requirements are effective for the Company beginning January 1, 2018, and may be implemented either retrospectively for all periods presented, or as a cumulative-effect adjustment as of the date of adoption. The Company will adopt Topic 606 as of January 1, 2018 with retrospective application to January 1, 2016 through December 31, 2017. Based on the Company’s evaluation of the new standard, revenue recognition in accordance with Topic 606 differs from the current guidance provided by GAAP as outlined in the Securities and Exchange Commission’s (SEC) Staff Accounting Bulletin 104, which requires the Company to defer recognition of revenue until the risk of loss has passed to the customer and delivery has been made or a fixed delivery schedule has been provided by the customer. As the Company’s products have no alternative use to the Company due to contractual restrictions placed by each customer on the technical specifications and design of the products, the Company has determined that revenue upon adoption of Topic 606 will be recognized over time during the course of the production process and when control is transferred to the customer. The Company expects that the adoption of Topic 606 will have a material impact on the amount of net sales, cost of goods sold and income from operations reported in the consolidated income statements in future periods. In accordance with Topic 606, revenues will be recognized over the course of the production process, whereas currently it is recognized as blades are delivered to the customer. An increased amount of revenue will be recognized at the beginning of production under a contract and upon contract amendments as the learning curve associated with starting up production and transitions of manufacturing lines generates revenue whereas previously these activities would be considered period costs and revenue was recognized when the product was delivered to the customer. Further, since revenue will be recognized over time for manufacturing contracts, future net sales will include amounts related to products that are in production as of the period end. Finally, the gross profit realized in the period and over the remaining term of the contract will be impacted by the changes related to the timing and amount of revenue recognized for products in the production process. Although Topic 606 does not have a cash impact nor an effect on the economics of the Company's underlying customer contracts, applying Topic 606 to contracts in startup and transition will likely result in higher reported earnings in 2018 than under the previous guidance as revenue is shifted to the initial years of startup and transition activities of a contract. The Company expects a corresponding acceleration in timing of cost of goods sold recognition for these contracts upon adoption of Topic 606. Topic 606 will not change the total amount of revenue recognized under the Company’s long-term supply contracts, only accelerate the timing of when the revenue is recognized. Based on the progress made to date on the retrospective application of Topic 606, the Company’s preliminary estimate of the restated net sales and income from operations for the year ended December 31, 2017 is $955 million and $70 million, respectively. Similarly, for the year ended December 31, 2016, the Company’s preliminary estimate of the restated net sales and income from operations is $770 million and $54 million, respectively. The changes noted above involving the timing of revenue recognition will materially impact the amount of reported assets and liabilities on the consolidated balance sheet associated with the Company’s manufacturing contracts. Upon adoption of Topic 606, the Company will include amounts recognized in revenue for products in production as contract assets on the consolidated balance sheet, which differs from the current practice of including the balances in inventory, and will include an amount for the margin recognized to date. The Company will no longer report inventory held for customer orders since revenue will be recognized over the course of the production process, which will include an amount for the margin recognized to date, and before the product is delivered to the customer. Work performed as production takes place will lead to revenue recognition and be included in the consolidated balance sheet under contract assets. The Company expects that contract liabilities will be reported for amounts collected from customers in advance of the production of products. The Company does not expect to have deferred revenue as revenue for products will be recognized over time. The Company does not anticipate a change in the timing of cash receipts and payments from customers as customers will continue to be invoiced as products are completed. In addition, the Company does not expect changes to the aggregate amount of cash flows from operating activities in the consolidated statements of cash flows; however, the impact of changes in the captions on the consolidated balance sheet will have a material effect on the captions within cash flows from operating activities in the consolidated statements of cash flows. The Company has a project plan in place for the transition to revenue recognition in accordance with Topic 606 including necessary changes to accounting processes and procedures, the chart of accounts, the system of internal control and retrospective application of the standard to periods beginning January 1, 2016 through December 31, 2017. The Company has performed the following steps in the project plan for the adoption of Topic 606 and the retrospective application: • Completed an assessment identifying all customer contracts in place as of December 31, 2017, that would have had reve |
Significant Risks and Uncertain
Significant Risks and Uncertainties | 12 Months Ended |
Dec. 31, 2017 | |
Risks And Uncertainties [Abstract] | |
Significant Risks and Uncertainties | Note 2. Significant Risks and Uncertainties The Company’s revenues and receivables are from a small number of customers. As such, the Company’s production levels are dependent on these customers’ orders. See Note 17, Concentration of Customers The Company maintains its U.S. cash in bank deposit accounts that, at times, exceed U.S. federally insured limits. U.S. bank accounts are guaranteed by the Federal Deposit Insurance Corporation (FDIC) in an amount up to $250,000 during 2017 and 2016. At December 31, 2017 and 2016, the Company had $98.9 million and $103.4 million, respectively, of cash in deposit accounts in high quality U.S. banks, which was in excess of FDIC limits. The Company has not experienced losses in any such accounts. The Company also maintains cash in bank deposit accounts outside the U.S. with no insurance. At December 31, 2017, this includes $0.7 million in Turkey, $46.3 million in China and $2.2 million in Mexico. The Company has not experienced losses in these accounts. In addition, the Company has short-term deposits in interest bearing accounts of $3.8 million in China, which are reported as restricted cash in the Company’s consolidated balance sheets. The Company also has long-term deposits in interest bearing accounts of $0.5 million in Iowa. See Note 9, Other Noncurrent Assets. |
Related-Party Transactions
Related-Party Transactions | 12 Months Ended |
Dec. 31, 2017 | |
Related Party Transactions [Abstract] | |
Related-Party Transactions | Note 3. Related-Party Transactions Related party transactions include transactions between the Company and certain of its affiliates. The following transactions were in the normal course of operations and were measured at the exchange amount, which is the amount of consideration established and agreed to by the parties. The Company has entered into several agreements with subsidiaries of General Electric Company and its consolidated affiliates (GE) relating to the operation of its business. As a result of these agreements, GE has been a debtor, creditor and holder of both preferred and common shares. During the second quarter of 2017, GE reduced its holdings of the Company’s common shares to less than five percent of the total shares outstanding and then completely divested of the Company’s common shares during the third quarter. The Company has entered into five separate supply agreements with GE to manufacture wind blades in Newton, Iowa; Taicang Port, China; Juárez, Mexico (2) and Izmir, Turkey. The supply agreements in Taicang Port, China and Izmir, Turkey expired in December 31, 2017 and GE decided not to renew or extend these two contracts. As a result of the supply agreements, GE is the Company’s largest customer. For the six months ended June 30, 2017, the Company recorded related-party sales with GE of $187.3 million. As disclosed in Note 17, Concentration of Customers In January 2016, the Company entered into an agreement with GE and received an advance of $2.0 million, which the Company repaid in full in August 2016. See Note 11, Customer Deposits and Customer Advances. Certain of the Company’s existing stockholders, consisting of entities associated with Element Partners, Angeleno Group and Landmark Partners, each of which is an affiliate of a member of the board of directors, as well as certain executive officers and a director, purchased an aggregate of 1,250,000 shares of common stock in the IPO. In addition, all outstanding obligations and accrued interest under the Company’s subordinated convertible promissory notes held by certain existing stockholders, including Element Partners, Angeleno Group and Landmark Partners, were converted into an aggregate of 1,079,749 shares of common stock concurrent with the closing of the IPO at the public offering price of $11.00 per share. In connection with the Company’s secondary offering in May 2017, certain entities associated with Element Partners, Angeleno Group, Landmark Partners and NGP Energy Technology Partners, L.P, as well as certain executive officers of the Company sold an aggregate of 5,075,000 shares of common stock at the public offering price of $16.35 per share. |
Accounts Receivable
Accounts Receivable | 12 Months Ended |
Dec. 31, 2017 | |
Receivables [Abstract] | |
Accounts Receivable | Note 4. Accounts Receivable Accounts receivable at December 31 consisted of the following: 2017 2016 (in thousands) Trade accounts receivable $ 117,794 $ 66,612 Other accounts receivable 3,782 1,230 Total accounts receivable $ 121,576 $ 67,842 |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2017 | |
Inventory Disclosure [Abstract] | |
Inventories | Note 5. Inventories Inventories at December 31 consisted of the following: 2017 2016 (in thousands) Raw materials $ 28,795 $ 29,278 Work in process 33,623 21,169 Finished goods 4,646 2,648 Total inventories $ 67,064 $ 53,095 |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 12 Months Ended |
Dec. 31, 2017 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |
Prepaid Expenses and Other Current Assets | Note 6. Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets at December 31 consisted of the following: 2017 2016 (in thousands) Refundable value-added tax $ 11,507 $ 5,229 Prepaid customs and duty charges 280 8,289 Deposits 5,585 8,135 Prepaid rebates — 519 Other prepaid expenses 9,357 8,130 Other current assets 778 355 Total prepaid expenses and other current assets $ 27,507 $ 30,657 |
Property, Plant, and Equipment,
Property, Plant, and Equipment, Net | 12 Months Ended |
Dec. 31, 2017 | |
Property Plant And Equipment [Abstract] | |
Property, Plant, and Equipment, Net | Note 7. Property, Plant and Equipment, Net Property, plant and equipment, net at December 31 consisted of the following: 2017 2016 (in thousands) Machinery and equipment $ 100,681 $ 70,481 Buildings 14,711 13,449 Leasehold improvements 21,853 16,818 Office equipment and software 18,664 6,403 Furniture 19,017 15,883 Vehicles 294 342 Construction in progress 10,687 11,592 Total property, plant and equipment, gross 185,907 134,968 Accumulated depreciation (62,427 ) (43,802 ) Total property, plant and equipment, net $ 123,480 $ 91,166 As of December 31, 2017, the Company had undertaken projects including the construction and outfitting of its second and third wind blade production facilities in Juárez, Mexico, its second wind blade production facility in Izmir, Turkey, the expansion and improvements at certain of our existing wind blade production facilities and costs at our corporate office to enhance our information technology systems. Total depreciation for the years ended December 31, 2017, 2016 and 2015 was $20.8 million, $12.7 million and $10.6 million, respectively. As of December 31, 2017, the cost and accumulated depreciation of property, plant and equipment that the Company is leasing under capital lease arrangements is $29.7 million and $8.0 million, respectively. As of December 31, 2016, the cost and accumulated depreciation of property, plant and equipment that the Company is leasing under capital lease arrangements is $23.4 million and $4.4 million, respectively. |
Intangible Assets, Net
Intangible Assets, Net | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Intangible Assets, Net | Note 8. Intangible Assets, Net Carrying values and estimated useful lives of intangible assets as of December 31, 2017, consisted of the following: Estimated Useful Life Cost Accumulated Amortization Net (in thousands) Patents 13 years $ 2,000 $ (2,000 ) $ — Trademarks Indefinite 150 — 150 Total intangible assets, net $ 2,150 $ (2,000 ) $ 150 Carrying values and estimated useful lives of intangible assets as of December 31, 2016, consisted of the following: Estimated Useful Life Cost Accumulated Amortization Net (in thousands) Patents 13 years $ 2,000 $ (1,885 ) $ 115 Trademarks Indefinite 150 — 150 Total intangible assets, net $ 2,150 $ (1,885 ) $ 265 During the years ended December 31, 2017, 2016 and 2015, the Company recorded amortization expense of $0.1 million, $0.2 million and $0.8 million, respectively. |
Other Noncurrent Assets
Other Noncurrent Assets | 12 Months Ended |
Dec. 31, 2017 | |
Other Assets Noncurrent [Abstract] | |
Other Noncurrent Assets | Note 9. Other Noncurrent Assets Other noncurrent assets at December 31 consisted of the following: 2017 2016 (in thousands) Restricted cash $ 475 $ 8,538 Deferred tax assets 8,304 5,131 Land use right 1,708 1,648 Deposits 3,238 2,422 Other 405 2 Total other noncurrent assets $ 14,130 $ 17,741 As of December 31, 2017 and 2016, the Company maintained long-term deposits in interest bearing accounts related to fully cash-collateralized letter of credit in connection with an equipment lessor in Iowa totaling approximately $0.5 million. As of December 31, 2016, the Company also maintained long-term deposits in interest bearing accounts, related to fully cash-collateralized letters of credit in connection with the facility leases at its Mexico locations, totaling approximately $8.1 million. As a result of the refinancing of our previous credit facility, in the first quarter of 2017, approximately $8.1 million of long-term deposits in interest bearing accounts related to fully cash-collateralized letters of credit were returned to the Company and applied against its letter of credit sub-facility under the Restated Credit Facility. The land use right was purchased during 2007 and permits the Company to use the land where the Taicang Port, China facility, owned by the Company, is situated. The Company is amortizing the land use right on a straight-line basis over its 50 year life. Amortization of the land use right began upon the opening of the plant in 2008. |
Accrued Warranty
Accrued Warranty | 12 Months Ended |
Dec. 31, 2017 | |
Product Warranties Disclosures [Abstract] | |
Accrued Warranty | Note 10. Accrued Warranty Warranty accrual at December 31 consisted of the following: 2017 2016 2015 (in thousands) Warranty accrual at beginning of year $ 19,912 $ 13,596 $ 5,916 Accrual during the year 15,364 18,886 10,653 Cost of warranty services provided during the year (1) (1,986 ) (10,808 ) (1,349 ) Reduction of reserves (4,127 ) (1,762 ) (1,624 ) Warranty accrual at end of year $ 29,163 $ 19,912 $ 13,596 (1) The 2016 amount includes an 8.0 million Euro ($8.5 million) payment related to the Nordex settlement agreement. |
Customer Deposits
Customer Deposits | 12 Months Ended |
Dec. 31, 2017 | |
Other Liabilities Disclosure [Abstract] | |
Customer Deposits | Note 11. Customer Deposits The Company regularly enters into contracts for the production of composite structures that require the purchase of raw materials specific to the customers’ orders. As such, the Company may require that customers pay a deposit prior to the beginning of production. The customer deposits are recorded as current liabilities in the consolidated balance sheets and are reduced as the Company invoices its customers for work performed or the products are delivered. As of December 31, 2017 and 2016, the Company had customer deposits of $10.1 million and $1.4 million, respectively. |
Share-Based Compensation Plans
Share-Based Compensation Plans | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Share-Based Compensation Plans | Note 12. Share-Based Compensation Since 2015, the Company has granted awards of stock options and restricted stock units (RSUs) to certain employees and non-employee directors under the 2015 Plan. Each award granted prior to the consummation of the Company’s IPO included a performance condition that required the completion of an initial public offering by the Company and a required vesting period of one to four years commencing upon achievement of the performance condition. As the IPO was consummated in July 2016, the Company began recording compensation expense in July 2016 for the requisite service period from the grant date through the IPO date with the balance of the share-based compensation to be expensed over the remaining vesting period. Upon completion of the IPO and the achievement of the performance condition, the Company was required to record share-based compensation expense for the requisite service period from the grant date which included approximately $3.6 million related to the portion of the service period from the grant date through December 31, 2015. No share-based compensation expense was recorded during the year ended December 31, 2015. The share-based compensation expense recognized in the consolidated income statements for the years ended December 31 was as follows: 2017 2016 (in thousands) Cost of goods sold $ 1,070 $ 1,505 General and administrative expenses 6,054 8,397 Total share-based compensation expense $ 7,124 $ 9,902 The share-based compensation expense recognized by award type for the years ended December 31 was as follows: 2017 2016 (in thousands) RSUs $ 2,808 $ 3,457 Stock options 4,316 6,445 Total share-based compensation expense $ 7,124 $ 9,902 The summary of activity for the Company’s incentive plans is as follows: Stock Options RSUs Shares Available for Grant Shares Weighted- Average Exercise Price Options Exercisable Shares Weighted- Average Grant Date Fair Value Balance as of December 31, 2014 1,032,950 35,703 $ 8.49 35,703 — $ — Increase in shares authorized 6,317,031 — — — — Granted (4,001,040 ) 3,269,160 11.92 731,880 10.89 Exercised/vested — — — — — Forfeited/cancelled 43,200 (43,200 ) 10.87 — — Balance as of December 31, 2015 3,392,141 3,261,663 11.90 35,703 731,880 10.89 Increase in shares authorized 169,546 — — — — Granted (493,990 ) 493,990 17.37 — — Exercised/vested — — — — — Forfeited/cancelled 519,995 (424,235 ) 11.78 (95,760 ) 10.87 Balance as of December 31, 2016 3,587,692 3,331,418 12.72 25,828 636,120 10.90 Increase in shares authorized 1,349,475 — — — — Granted (433,700 ) 213,200 19.70 220,500 22.42 Exercised/vested — (138,878 ) 10.83 (218,040 ) 10.95 Forfeited/cancelled 227,650 (202,450 ) 11.54 (25,200 ) 10.87 Balance as of December 31, 2017 4,731,117 3,203,290 13.34 890,433 613,380 15.02 The grant date fair value of RSUs which vested during the year ended December 31, 2017 was $2.4 million. In addition, during 2017, the Company repurchased 68,815 shares for $1.3 million related to tax withholding requirements on vested RSU awards. The following table summarizes the outstanding and exercisable stock option awards as of December 31, 2017: Options Outstanding Options Exercisable Range of Exercise Prices: Shares Weighted- Average Remaining Contractual Life (in years) Weighted- Average Exercise Price Shares Weighted- Average Exercise Price $8.49 22,728 2.0 $ 8.49 22,728 $ 8.49 $10.87 1,973,349 7.4 10.87 562,615 10.87 $11.00 to $16.53 656,523 8.0 16.12 198,472 16.27 $17.68 to $18.70 342,790 8.4 18.68 106,618 18.68 $18.77 to $22.34 207,900 9.7 19.79 — — $8.49 to $22.34 3,203,290 7.8 13.34 890,433 12.95 The following table contains additional information pertaining to stock options for the years ended December 31: 2017 2016 2015 (in thousands) Total intrinsic value of stock options outstanding $ 22,804 $ 12,251 $ 34,388 Total intrinsic value of stock options exercisable 6,688 195 498 Cash received from the exercise of stock options 1,430 — — Fair value of stock options vested 4,931 — — As of December 31, 2017, the unamortized cost of the outstanding RSUs was $5.0 million, which the Company expects to recognize in the consolidated financial statements over a weighted-average period of approximately 1.5 years. Additionally, the total unrecognized cost related to non-vested stock option awards was $4.8 million, which the Company expects to recognize in the consolidated financial statements over a weighted-average period of approximately 1.8 years. As of December 31, 2016, the unamortized cost of the outstanding RSUs was $2.8 million, which the Company expected to recognize in the consolidated financial statements over a weighted-average period of approximately 1.8 years. Additionally, the total unrecognized cost related to non-vested stock option awards was $7.3 million, which the Company expected to recognize in the consolidated financial statements over a weighted-average period of approximately 2.1 years. The fair value of the stock options granted during the years ended December 31 were calculated using the Black-Scholes option pricing model with the following assumptions: 2017 2016 2015 Weighted-average fair value $ 9.10 $ 5.14 $ 5.02 Expected volatility 45.0 % 45.2 % 42.7 % Expected life 6.3 years 6.3 years 6.3 years Risk-free interest rate 1.5 % 0.9 % 0.7 % Dividend yield 0.0 % 0.0 % 0.0 % |
Long-Term Debt, Net of Debt Iss
Long-Term Debt, Net of Debt Issuance Costs and Current Maturities | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Long-Term Debt, Net of Debt Issuance Costs and Current Maturities | Note 13. Long-Term Debt, Net of Debt Issuance Costs and Current Maturities Long-term debt, net of debt issuance costs and current maturities, as of December 31 consisted of the following: 2017 2016 (in thousands) Senior term loan—U.S. $ 71,250 $ 75,000 Senior revolving loan—US 2,820 2,820 Accounts receivable financing—EMEA 14,100 15,120 Unsecured financing—EMEA — 4,638 Equipment financing—EMEA 16,901 15,813 Equipment capital lease—U.S. 536 2,016 Equipment capital lease—EMEA 5,058 1,898 Equipment capital lease—Mexico 12,844 8,037 Equipment loan—Mexico 47 103 Total debt - principal 123,556 125,445 Less: Debt issuance costs (2,171 ) (2,290 ) Total debt, net of debt issuance costs 121,385 123,155 Less: Current maturities of long-term debt (35,506 ) (33,403 ) Long-term debt, net of debt issuance costs and current maturities $ 85,879 $ 89,752 Senior Financing Agreements (U.S.): In December 2016, the Company amended and restated the previous credit facility (the Restated Credit Facility). The previous $100.0 million of available principal was replaced with a $75.0 million term loan and a $25.0 million revolving credit facility, which originally included a $15.0 million letter of credit sub-facility, which was increased to $20.0 million in April 2017. The borrowings under the Restated Credit Facility bear interest at a variable rate through maturity at the London Interbank Offered Rate (LIBOR), with a 1.0% floor, plus 5.75%. The Restated Credit Facility requires us to make quarterly principal payments in the amount of $0.9 million of the outstanding principal loan balance commencing in March 2017, with the remaining outstanding balance to be repaid on or before December 30, 2020. The Restated Credit Facility contains customary affirmative covenants, negative covenants and events of default, including covenants and restrictions that, among other things, require the Company and its subsidiaries to satisfy certain capital expenditure and other financial covenants, and restricts the ability of the Company and its subsidiaries to incur liens, incur additional indebtedness, enter into joint ventures or partnerships, engage in mergers and acquisitions, engage in asset sales and declare dividends on its capital stock without the prior written consent of the lenders. The obligations under the Restated Credit Facility are secured by a lien on substantially all tangible and intangible property of the Company and its domestic subsidiaries and by a pledge by the Company and its domestic subsidiaries of 65% of the equity of their direct foreign subsidiaries, subject to customary exceptions and exclusions from collateral. If the Company prepays any of the outstanding principal loan balance prior to December 30, 2017, the Company is required to pay the lenders a premium in an amount equal to the amount of interest that otherwise would have been payable from the date of prepayment until December 30, 2017 plus 3.0% of the amount of the principal loan balance that was prepaid. None of the outstanding principal loan balance was prepaid prior to December 31, 2017. If the Company prepays any of the outstanding principal loan balance after December 30, 2017 through December 30, 2018, the Company is required to pay the lenders 2.0% of the principal loan balance that was prepaid, and if the Company prepays any of the outstanding loan balance after December 30, 2018 through December 30, 2019, the Company is required to pay a premium of 1.5% of the amount of the principal loan balance that was prepaid. In connection with the Restated Credit Facility, in December 2016 the Company repaid our previous credit facility balance of $74.4 million, plus accrued interest, closing fees, a prepayment penalty and the reimbursement of certain lenders expenses incurred. More specifically, the Company expensed $2.4 million of the remaining deferred financing costs associated with the previous credit facility and the related $2.1 million prepayment penalty within the caption “Loss on extinguishment of debt” in the accompanying consolidated income statements. In addition, the Company incurred debt issuance costs related to the Restated Credit Facility totaling $2.2 million and these costs are being amortized to interest expense over the remaining term of the credit facility (48 months) using the effective interest method. In December 2017, the Company amended the Restated Credit Facility to consent to the restructuring of our parent and subsidiaries, decreased the variable interest rate to LIBOR, with a 1.0% floor, plus 5.25% (6.94% as of December 31, 2017) and the amendment of certain capital expenditure and other financial covenants. In connection with this amendment, the amendment fee of $0.4 million was recorded as a debt issuance cost and is being amortized to interest expense over the remaining term of the credit facility (36 months) using the effective interest method. As of December 31, 2017 and 2016, the aggregate outstanding balances under the Restated Credit Facility were $74.1 million and $77.8 million, respectively. The Company cannot assure you that they will be able to maintain appropriate minimum leverage or fixed-charge coverage ratio requirements in the future. Accounts Receivable, Secured and Unsecured Financing: EMEA During 2014, the Company renewed a general credit agreement with a financial institution in Turkey to provide up to $20.0 million (later increased to 21.0 million Euro, or approximately $25.2 million as of December 31, 2017) of short-term collateralized financing on invoiced accounts receivable of one of the EMEA segment’s customers. Interest accrues annually at a variable rate of the annual Euro Interbank Offered Rate (EURIBOR) plus 5.75% (later updated to annual EURIBOR plus 5.95%) (5.95% as of December 31, 2017) and is paid quarterly. In December 2014, Turkey obtained an additional $7.0 million (later decreased to $5.0 million) of unsecured financing in Turkey under the credit agreement, increasing the total facility. All credit agreement terms remained the same. The credit agreement does not have a maturity date, however the limits are reviewed in September of each year. Amounts outstanding under this agreement as of December 31, 2017 and 2016 include $6.8 million and $15.1 million of accounts receivable financing and none and $4.6 million of unsecured financing, respectively. In December 2014, the Company entered into a credit agreement with a Turkish financial institution to provide up to $16.0 million of short-term financing of which $10.0 million is collateralized financing on invoiced accounts receivable of one of Turkey’s customers, $5.0 million is unsecured financing and $1.0 million is related to letters of guarantee. Interest accrues at a variable rate of the three month EURIBOR plus 6.5% (6.5% as of December 31, 2017). The credit agreement does not have a maturity date, however the limits are reviewed in September of each year. No amounts were outstanding under this agreement as of December 31, 2017 and 2016. In March 2016, the Company entered into a general credit agreement, as amended, with a Turkish financial institution to provide up to 36.0 million Euro ( approximately $43.1 million as of December 31, 2017) of short-term financing of which 20.0 million Euro (approximately $23.9 million as of December 31, 2017) is collateralized financing based on invoiced accounts receivable of one of the EMEA segment’s customers, 12.5 million Euro (later increased to 15.0 million Euro, or approximately $18.0 million as of December 31, 2017) for the collateralized financing of capital expenditures and 1.0 million Euro (approximately $1.2 million as of December 31, 2017) related to letters of guarantee. Interest on the collateralized financing based on invoiced accounts receivable accrues at the one month EURIBOR plus 5.75% (5.75% as of December 31, 2017) and is paid quarterly with a maturity date equal to four months from the applicable invoice date. Interest on the collateralized capital expenditures financing accrues at the one month EURIBOR plus 6.75% (6.75% as of December 31, 2017) with monthly principal repayments beginning in October 2017 with a final maturity date of December 2021. Interest on the letters of guarantee accrues at 2.00% annually with an original final maturity date of March 2017 but it was later updated to February 2018. As of December 31, 2017 and 2016, there was $16.9 million and $15.8 million outstanding under the collateralized financing of capital expenditures line, respectively. Additionally, as of December 31, 2017, there was $7.3 million outstanding under the collateralized financing based on invoiced accounts receivables, with no corresponding amounts outstanding as of December 31, 2016. Asia In January 2016, the Company entered into a credit agreement with a Chinese financial institution to provide up to 95.0 million Renminbi (approximately $13.6 million as of December 31, 2016) of short-term financing of which 85.0 million Renminbi (approximately $12.2 million as of December 31, 2016) is collateralized financing based on invoiced accounts receivables of one of its Asia segment’s customers and 10.0 million Renminbi (approximately $1.4 million as of December 31, 2016) of working capital loans collateralized by one of its Asia segment location’s machinery and equipment. Interest on the collateralized financing based on invoiced accounts receivable and the collateralized working capital loan accrues at a specified LIBOR rate plus an applicable margin and can be paid monthly, quarterly or at the time of the debt’s final maturity (January 12, 2017). As of December 31, 2016, there were no amounts outstanding under these accounts receivable financing and working capital loans. This credit agreement matured in January 2017. In February 2017, the Company entered into a credit agreement with a Chinese financial institution to provide an unsecured credit line of up to 150.0 million Renminbi (approximately $23.0 million as of December 31, 2017) which can be used for the purpose of domestic and foreign currency loans, issuing letters of guarantee or other transactions approved by the lender. Interest on the credit line accrues at the LIBOR rate plus an applicable margin and can be paid monthly, quarterly or at the time of the debt’s maturity (in February 2018). As of December 31, 2017, there were 127.0 million Renminbi (approximately $19.5 million as of December 31, 2017) of letters of guarantee used for customs clearance outstanding. Equipment Leases and Other Arrangements: U.S In March 2014, the Company entered into a lease agreement with a leasing company for the initial lease of up to $2.2 million of machinery and equipment at its Iowa facility. The lease agreement was subsequently amended and the amount of machinery and equipment available for lease was increased to $5.4 million. The lease includes an implied effective interest rate of 4.3% annually and requires monthly payments during each 24 month term. As of December 31, 2017 and 2016, there was $0.5 million and $2.0 million outstanding under this agreement. EMEA In 2013, the Company entered into a finance lease agreement with a financial institution in Turkey for the initial lease of up to $4.9 million of machinery, equipment and building improvements at its Turkey facility. The term of the lease was for four years at an effective interest rate of 6.0%. The loan is to be repaid in monthly installments through 2017. The financing agreement was subsequently amended in 2017 to include Turkey’s second facility and increase the amount of machinery, equipment and building improvement available for lease to $10.0 million. As a result of the amendment, the loan is to be repaid in monthly installments through 2022. All other financing agreement terms remained the same. The balance outstanding as of December 31, 2017 and 2016 was $5.1 million and $1.9 million, respectively. Mexico In January 2016, the Company entered into a lease agreement with a leasing company for the initial lease of up to $9.5 million (subsequently amended to $10.0 million) of machinery and equipment at its second Mexico facility. The lease includes an implied effective interest rate of 4.3% annually and requires monthly payments during each 24 month term. The amounts outstanding under this agreement as of December 31, 2017 and 2016 were $5.0 million and $8.0 million, respectively. In March 2017, the Company entered into a sale-lease agreement with a leasing company for the initial lease of up to $12.0 million of machinery and equipment at its second Mexico facility. The lease includes an implied effective interest rate of 4.3% annually and requires monthly payments during each 24 month term. The amount outstanding under this agreement as of December 31, 2017 was $7.4 million. Due to the short-term nature of the unsecured financings in the EMEA segment, the Company estimates that fair-value approximates the face value of the notes. Costs associated with the issuance of debt are presented net of the related debt and are amortized over the term of the debt using the effective interest rate method. For the years ended December 31, 2017, 2016 and 2015, $0.6 million, $1.7 million and $1.3 million of debt issuance costs were amortized to interest expense in the Company’s consolidated income statements. The average interest rate on the Company’s short-term borrowings as of December 31, 2017 and 2016 was approximately 5.9% and 5.8%, respectively. The future aggregate annual principal maturities of debt at December 31, 2017, are as follows (in thousands): 2018 $ 35,506 2019 13,146 2020 69,094 2021 4,723 2022 1,087 Total debt - principal $ 123,556 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 14. Commitments and Contingencies (a) Operating Leases The Company leases various facilities and equipment under noncancelable operating leases with terms ranging from 12 months to 120 months. Scheduled rent increases are recorded on a straight-line basis over the entire term of the lease. Rental expense charged under all operating leases (including leases with terms of less than one year) was $19.3 million, $11.5 million and $8.4 million for the years ended December 31, 2017, 2016 and 2015, respectively. Future minimum lease payments under noncancelable operating leases with terms of one year or more as of December 31, 2017 are as follows (in thousands): 2018 $ 20,608 2019 19,050 2020 17,356 2021 14,090 2022 11,803 Thereafter 43,725 Total future minimum lease payments $ 126,632 (b) Common Stock Warrants In connection with the note purchase agreement dated December 29, 2014, for the purchase of $10.0 million of subordinated convertible promissory notes, a minimum of 160,424 warrants were issued to purchase common stock with an exercise price equal to the lesser of $24.30 or 85% of the IPO price of $11.00 per share, accordingly, after the IPO, the exercise price is $9.35. The warrants are immediately exercisable and expire no later than eight years from the date of issuance. The unamortized fair value of the warrants was expensed upon conversion of the convertible promissory notes concurrent with the IPO. These warrants all remain outstanding as of December 31, 2017. (c) Legal Proceedings From time to time, the Company may be involved in disputes or litigation relating to claims arising out of its operations. In March 2015, a complaint was filed against the Company in the Superior Court of the State of Arizona (Maricopa County) by a former employee of the Company, alleging that the Company had agreed to make certain cash payments to such employee upon any future sale of the Company. The Company filed a motion to dismiss the complaint in April 2015, which was denied. The Company subsequently filed an answer to the complaint in July 2015 denying the substantive allegations of the complaint. The parties completed court-ordered mediation in December 2015 but were not able to reach a settlement. The Company filed a motion for summary judgment to dismiss the complaint in April 2016 and the court denied our motion in August 2016. The court set a trial date for September 2017. In May 2017, the Company filed a motion for continuance to change the trial date and the court granted its motion. The court has set a trial date in August 2018. The Company continues to deny the substantive allegations of the complaint and intends to vigorously defend this lawsuit; however, the Company is currently unable to determine the ultimate outcome of this case. In August 2015, the Company entered into a transition agreement with its former Senior Vice President – Asia (SVP–Asia), pursuant to which he transitioned out of this role at the end of 2015 and was to serve in a consulting capacity in 2016 and 2017. In January 2016, following our discovery that he had materially violated the terms of his transition agreement, the Company terminated his consultancy for cause. In April 2016, he filed an arbitration claim in China with the Taicang Labor and Personnel Dispute Arbitration Committee alleging that the Company improperly terminated his transition agreement. He is demanding that the Company continue to honor the terms of the transition agreement and pay him compensation and fees owed to him under the transition agreement, which in the aggregate totals approximately $2.6 million. In addition, he is also challenging the validity of the Company’s termination of his option to purchase 164,880 shares of the Company’s common stock and 77,760 restricted stock units under the 2015 Plan, which were canceled in January 2016 when the Company terminated his consultancy. The Company is awaiting a final decision on this matter. The Company previously established a reserve for these matters and does not believe the award, if upheld on appeal, will have a material impact on its operating results or financial condition. From time to time, the Company is party to various lawsuits, claims, and other legal proceedings that arise in the ordinary course of business, some of which are covered by insurance. Upon resolution of any pending legal matters, the Company may incur charges in excess of presently established reserves. Management does not believe that any such charges would, individually or in the aggregate, have a material adverse effect on the Company’s financial condition, results of operations or cash flows. (d) Insurance/Self-Insurance The Company uses a combination of insurance and self-insurance for a number of risks, including claims related to employee health care, workers’ compensation and general liability. Liabilities associated with these risks are estimated based on, among other things, historical claims experience, severity factors, and other actuarial assumptions. The Company’s loss exposure related to self-insurance is limited by stop loss coverage on a per occurrence and aggregate basis. The Company regularly analyzes its reserves for incurred but not reported claims, and for reported but not paid claims related to self-funded insurance programs. While the Company believes reserves are adequate, significant judgment is involved in assessing these reserves such as assessing historical paid claims, average lags between the claims’ incurred date, reported dates and paid dates, and the frequency and severity of claims. There may be differences between actual settlement amounts and recorded reserves and any resulting adjustments are included in expense once a probable amount is known. (e) Dividend Restrictions Certain subsidiaries of the Company are limited in their ability to declare dividends without first meeting statutory restrictions of the People’s Republic of China, including retained earnings as determined under Chinese-statutory accounting requirements. Until 50% ($11.6 million) of registered capital is contributed to a surplus reserve, the Company’s Chinese operations can only pay dividends equal to 90% of after-tax profits (10% must be contributed to the surplus reserve). Once the surplus reserve fund requirement is met, the Company can pay dividends equal to 100% of after-tax profit assuming other conditions are met. At December 31, 2017, the amount of the surplus reserve fund was $5.6 million. (f) Collective Bargaining Agreement In May 2016, the Company entered into a new three-year collective bargaining agreement with certain of its Turkish employees at their first facility. The new agreement resulted in an average increase in pay of approximately 20% for employees covered by the agreement. In addition, beginning on July 1, 2017, these collective bargaining arrangements also covered similarly situated employees at their second facility. In March 2018, the Company entered into a collective bargaining agreement with a labor union for certain of its employees at the Matamoros, Mexico facility. Currently, there are no other employees covered by collective bargaining agreements. The Company believes that its relations with employees are good, and there have been no major work stoppages in recent years. |
Defined Contribution Plan
Defined Contribution Plan | 12 Months Ended |
Dec. 31, 2017 | |
Compensation And Retirement Disclosure [Abstract] | |
Defined Contribution Plan | Note 15. Defined Contribution Plan The Company maintains a 401(k) plan for all of its U.S. employees. Under the 401(k) plan, eligible employees may contribute, subject to statutory limitations, a percentage of their salaries. The Company currently matches 50 percent of the participants’ contributions up to 8 percent of eligible compensation. Participant vesting occurs in the Company matching contributions according to the schedule below: Years of service Vesting Percentage 1-year anniversary 34 % 2-year anniversary 66 % 3-year anniversary 100 % The Company’s matching contributions to the 401(k) plan were $0.6 million, $0.3 million and $0.2 million for the years ended December 31, 2017, 2016 and 2015, respectively. The Company’s matching contributions are accrued and recorded as expense during each payroll period. Effective January 1, 2017, the Company changed the 401(k) plan to include an auto enrollment feature, increased the Company match from 25% of the first 8% to 50% of the first 8% and reduced the vesting period from six years to three years. In Mexico, the Company maintains an annual savings fund, which matches the employee contribution each week, based on the Mexican statutory maximum of 13% of actual minimum salary rates. The savings fund period runs from November to October each year, and is distributed to employees in full, during the first week of November each year. For the years ended December 31, 2017, 2016 and 2015, the Company incurred matched savings expense of $1.3 million, $0.6 million and $0.5 million, respectively. In Turkey, the Company maintains a retirement fund that is based on a formula of annual salary multiplied by the number of years of service for the Company. The Company accrues a retirement fund liability for this each month. As of December 31, 2017 and 2016, the Company accrued $1.5 million and $1.0 million, respectively, based on the service periods of eligible employees greater than one year. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 16. Income Taxes Geographic sources of income before income taxes are as follows for the years ended December 31: 2017 2016 2015 (in thousands) United States $ 2,894 $ 5,406 $ (3,165 ) China 41,075 22,826 18,420 Turkey 9,160 (8,564 ) (4,552 ) Mexico 3,641 1,169 956 Total income before income taxes $ 56,770 $ 20,837 $ 11,659 As of December 31, 2017, the Company has not completed its accounting for all of the tax effects associated with the enactment of Tax Reform. However, the Company has, in certain cases made a provisional estimate of the effects on its existing deferred tax balances and the one-time transition tax. Consequently, the Company has adjusted its US gross deferred tax assets for the reduction in the income tax rate and provisionally estimated the impact of the one-time transition tax on earnings. The provisional transition tax required the Company to recognize $74.3 million of previously untaxed foreign earnings in its 2017 U.S. income tax calculation and to include additional indirect foreign tax credits of $7.4 million. The Company will finalize the provisional amounts within one year from the date of enactment. As a result of Tax Reform, the Company provisionally recognized a total benefit of approximately $0.1 million (net of valuation allowance) from the reduced income tax rate from 35% to 21% that was applied to certain of the Company’s net deferred tax liabilities and the realization of a benefit from its alternative minimum tax credit carryover. All other material income tax benefits and expenses associated with the enactment of Tax Reform are not reflected in the income tax provision as the Company continues to record a valuation allowance against its U.S. federal and state deferred tax assets. Because the Company previously asserted permanent reinvestment, it did not record a deferred tax liability related to unremitted foreign earnings. The Company intends to continue to permanently reinvest such earnings. In addition, the Company’s ability to repatriate funds from China to the United States is subject to a number of restrictions imposed by the Chinese government. As the Company obtains and analyzes information related to the deemed repatriation of foreign earnings under Tax Reform, the Company will finalize the provision within one year of the enactment date. Additionally, there is uncertainty as to what portion, if any, of Tax Reform will be adopted by the U.S. state and local taxing authorities. The income tax provision includes U.S. federal, state, and local taxes, Turkey, China and Mexico taxes currently payable and those deferred because of temporary differences between the financial statement and the tax bases of assets and liabilities. The components of the income tax provision for the years ended December 31 are as follows: 2017 2016 2015 (in thousands) Current: U.S. federal $ (49 ) $ — $ (51 ) U.S. state and local taxes (3 ) (196 ) 55 Foreign 14,200 9,973 4,738 Total current 14,148 9,777 4,742 Deferred: U.S. federal (20 ) 51 — U.S. state and local taxes — — — Foreign (1,048 ) (2,833 ) (765 ) Total deferred (1,068 ) (2,782 ) (765 ) Total income tax provision $ 13,080 $ 6,995 $ 3,977 The following is a reconciliation from the U.S. statutory income tax rate to the Company’s effective income tax rate for the years ended December 31: 2017 2016 2015 United States statutory income tax rate 35.0 % 34.0 % 34.0 % Foreign rate differential (11.1 ) 5.3 (23.9 ) Foreign permanent differences 1.2 2.4 4.1 China rate change — (4.8 ) — U.S. rate change 19.9 — — Withholding taxes 5.0 6.8 3.4 Foreign tax credits (5.0 ) (7.9 ) 0.0 IRC Section 965 dividend 20.3 — — Foreign tax credits - 965 dividend (13.1 ) — — Nondeductible interest expense — 11.5 — Valuation allowance (28.0 ) (14.3 ) 17.3 State taxes — (0.6 ) 0.5 Deferred tax adjustments 3.7 (0.1 ) 2.3 Research and development (1.2 ) (3.0 ) (3.0 ) U.S. foreign income inclusions — 2.0 — Turkey incentive credits (5.3 ) (2.2 ) (0.4 ) Other 1.6 4.5 (0.2 ) Effective income tax rate 23.0 % 33.6 % 34.1 % The following is a summary of the components of deferred tax assets and liabilities at December 31: 2017 2016 2015 (in thousands) Deferred tax assets: Net operating loss and credit carry forwards $ 18,913 $ 25,354 $ 32,294 Deferred revenue 2,616 5,373 6,563 Non-deductible accruals 9,557 8,316 4,825 Equity compensation 3,489 3,503 — Equity investment 390 633 653 Amortization of intangible assets 320 472 720 Tax credits 4,582 2,914 384 Other 3,424 1,248 1,671 Total deferred tax assets 43,291 47,813 47,110 Valuation allowance (29,141 ) (40,596 ) (41,216 ) Net deferred tax assets 14,150 7,217 5,894 Deferred tax liabilities: Deferred revenue (1,497 ) — (615 ) Depreciation (3,489 ) (1,714 ) (1,831 ) Other (1,972 ) (423 ) (1,787 ) Total deferred tax liabilities (6,958 ) (2,137 ) (4,233 ) Net deferred tax assets $ 7,192 $ 5,080 $ 1,661 The deferred tax valuation allowance at December 31 consisted of the following: 2017 2016 2015 (in thousands) Allowance at beginning of year $ (40,596 ) $ (41,216 ) $ (39,347 ) Benefits obtained (expenses incurred) 11,455 620 (1,869 ) Allowance at end of year $ (29,141 ) $ (40,596 ) $ (41,216 ) The valuation allowance relates to deferred taxes that the Company believes do not meet the more-likely-than-not criteria for recording the related benefits. During the period ended September 30, 2017, the Company released the valuation allowance recorded against deferred tax assets reported in Turkey. The release of this valuation allowance resulted in the recognition of a non-cash tax benefit of $2.6 million for the year. The Company also recognized $2.7 million of benefit during the year from the receipt of a new tax incentive from the Turkish government that will be used to reduce future cash taxes. The Company has U.S. federal net operating losses (NOLs) of approximately $51.2 million, state NOLs of approximately $92.6 million and foreign tax credits of approximately $1.7 million available to offset future U.S. taxable income. The federal and state net operating loss carryforwards expire in varying amounts through 2037 and the foreign tax credits which expire in 2026. The Company also has Turkey investment tax incentives of approximately $2.8 million that do not expire. Sections 382 and 383 of the Internal Revenue Code of 1986, contain rules that limit the ability of a company that undergoes an “ownership change” to utilize its net operating loss and tax credit carry forwards and certain built-in losses recognized in years after the ownership change. An “ownership change” is generally defined as any change in ownership of more than 50% of a corporation’s stock over a rolling three-year period by stockholders that own (directly or indirectly) 5% or more of the stock of a corporation, or arising from a new issuance of stock by a corporation. If an ownership change occurs, Section 382 generally imposes an annual limitation on the use of pre-ownership change NOLs to offset taxable income earned after the ownership change. The annual limitation is equal to the product of the applicable long-term tax exempt rate and the value of the company’s stock immediately before the ownership change. This annual limitation may be adjusted to reflect any unused annual limitation for prior years and certain recognized built-in gains and losses for the year. In addition, Section 383 generally limits the amount of tax liability in any post-ownership change year that can be reduced by pre-ownership change tax credit carryforwards. In 2008, the Company had an “ownership change” and the pre-ownership change NOLs existing at the date of change of $25.6 million were subject to an annual limitation of $4.3 million. As of December 31, 2016, the pre-ownership change NOLs are no longer limited. Certain of these NOLs may be at risk of limitation in the event of a future ownership change. The Company recognizes the impact of a tax position in its financial statements if that position is more-likely-than-not to be sustained on audit, based on the technical merits of the position. The Company discloses all unrecognized tax benefits, which includes the reserves recorded for uncertain tax positions on filed tax returns and the unrecognized portion of affirmative claims. The Company’s policy regarding uncertain tax positions is to recognize potential accrued interest and penalties related to unrecognized tax benefits as a component of income tax expense. As of December 31, 2017, the Company has not identified any unrecognized tax benefits. The Company operates in and files income tax returns in various jurisdictions in China, Mexico, Turkey and the U.S., which are subject to examination by tax authorities. During the year, the Company settled tax audits conducted by the China tax authorities for the years 2014 through 2016, and by the Turkish tax authorities for the years 2012 through 2014. The amount of the settlement of these audits was immaterial to the current year income tax provision. |
Concentration of Customers
Concentration of Customers | 12 Months Ended |
Dec. 31, 2017 | |
Risks And Uncertainties [Abstract] | |
Concentration of Customers | Note 17. Concentration of Customers Revenues from certain customers (in thousands) in excess of 10 percent of total consolidated Company revenues for the years ended December 31 are as follows: 2017 2016 2015 Customer Revenues % of Total Revenues % of Total Revenues % of Total Customer 1 - GE $ 413,245 44.4 % $ 379,941 50.3 % $ 312,495 53.3 % Customer 2 - Vestas 264,774 28.5 % 152,106 20.1 % 50,031 8.5 % Customer 3 - Nordex Acciona 153,962 16.6 % 131,775 17.5 % 154,927 26.5 % Customer 4 - Siemens Gamesa 83,895 9.0 % 81,463 10.8 % 60,544 10.3 % Other 14,405 1.5 % 9,592 1.3 % 7,855 1.4 % Total $ 930,281 100.0 % $ 754,877 100.0 % $ 585,852 100.0 % Trade accounts receivable from certain customers in excess of 10 percent of total consolidated Company trade accounts receivable at December 31 are as follows: 2017 2016 Customer % of Total % of Total Customer 1 - GE 18.9 % 24.9 % Customer 2 - Vestas 52.4 % 26.2 % Customer 3 - Nordex Acciona 19.5 % 26.8 % Customer 4 - Siemens Gamesa 4.9 % 16.2 % |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Segment Reporting | Note 18. Segment Reporting FASB ASC Topic 280, Segment Reporting The following tables set forth certain information regarding each of the Company’s segments for the years ended December 31: 2017 2016 2015 (in thousands) Net sales by segment: U.S. $ 181,889 $ 190,092 $ 149,614 Asia 361,696 301,893 206,779 Mexico 195,960 129,756 97,912 EMEA 190,736 133,136 131,547 Total net sales $ 930,281 $ 754,877 $ 585,852 Net sales by geographic location (1): United States $ 181,889 $ 190,092 $ 149,614 China 361,696 301,893 206,779 Mexico 195,960 129,756 97,912 Turkey 190,736 133,136 131,547 Total net sales $ 930,281 $ 754,877 $ 585,852 Depreciation and amortization: U.S. $ 4,821 $ 3,336 $ 3,477 Asia 6,083 4,534 4,181 Mexico 5,365 2,328 1,533 EMEA 4,609 2,699 2,225 Total depreciation and amortization $ 20,878 $ 12,897 $ 11,416 Capital expenditures U.S. $ 10,575 $ 4,056 $ 5,379 Asia 7,000 3,287 15,632 Mexico 20,033 5,565 2,897 EMEA 7,220 17,599 2,453 Total capital expenditures $ 44,828 $ 30,507 $ 26,361 Income (loss) from operations: U.S. $ (39,571 ) $ (25,099 ) $ (13,405 ) Asia 77,106 64,393 34,998 Mexico 13,130 9,546 7,531 EMEA 21,671 (5,727 ) (1,505 ) Total income from operations $ 72,336 $ 43,113 $ 27,619 Tangible long-lived assets: U.S. $ 24,575 $ 16,740 Asia (China) 28,887 26,341 Mexico 39,756 24,842 EMEA (Turkey) 30,262 23,243 Total tangible long-lived assets $ 123,480 $ 91,166 Total assets: U.S. $ 141,846 $ 115,213 Asia 225,537 172,315 Mexico 88,914 68,231 EMEA 117,237 81,447 Total assets $ 573,534 $ 437,206 (1) Net sales are attributable to countries based on the location where the product is manufactured or the services are performed. In 2015, the total assets of the parent company of Asia were included in the U.S. segment’s total assets, whereas in 2016 and 2017, their total assets are included in the Asia segment’s total assets. |
Selected Quarterly Financial Da
Selected Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Financial Data (Unaudited) | Note 19. Selected Quarterly Financial Data (Unaudited) The following tables set forth certain unaudited financial information for each quarter of 2017 and 2016. The unaudited quarterly information includes all normal recurring adjustments that, in the opinion of management, are necessary for the fair presentation of the information for the periods presented. The operating results for any quarter are not necessarily indicative of the results for any future period. The unaudited quarterly results are as follows: 2017 First Quarter Second Quarter Third Quarter Fourth Quarter (in thousands, except per share data) Net sales $ 191,602 $ 248,186 $ 243,354 $ 247,139 Income from operations 9,714 23,799 23,546 15,277 Net income 3,545 13,858 20,398 5,889 Net income attributable to common stockholders 3,545 13,858 20,398 5,889 Net income per common share: Basic (1) $ 0.11 $ 0.41 $ 0.60 $ 0.17 Diluted (1) $ 0.10 $ 0.41 $ 0.58 $ 0.17 2016 First Quarter Second Quarter Third Quarter Fourth Quarter (in thousands, except per share data) Net sales $ 176,110 $ 194,255 $ 198,938 $ 185,574 Income from operations 8,189 17,478 8,137 9,309 Net income (loss) 1,746 11,555 2,797 (2,256 ) Net income (loss) attributable to common stockholders (691 ) 9,117 2,201 (2,256 ) Net income (loss) per common share: Basic (1) $ (0.16 ) $ 2.15 $ 0.08 $ (0.07 ) Diluted (1) $ (0.16 ) $ 2.15 $ 0.08 $ (0.07 ) (1) The sum of the quarterly net income (loss) per common share amounts may not equal the annual net income (loss) per common share amount due to rounding. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 20. Subsequent Event In January 2018, the Company entered into a credit agreement with a Chinese financial institution to provide an unsecured credit line of up to 150.0 million Renminbi, of which 40.0 million Renminbi can be used for working capital loans, with the remaining credit line to be used for the purpose of domestic and foreign currency loans, issuing letters of guarantee or other transactions approved by the lender. Interest on the credit line accrues at the LIBOR rate plus an applicable margin and can be paid monthly, quarterly or at the time of the debt’s maturity (in January 2019). |
Summary of Operations and Sig28
Summary of Operations and Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Description of Business and Basis of Presentation | (a) Description of Business and Basis of Presentation TPI Composites, Inc. is the holding company that conducts substantially all of its business operations through its direct and indirect subsidiaries (collectively, the Company). The Company was founded in 1968 and has been producing composite wind blades since 2001. The Company’s knowledge and experience of composite materials and manufacturing originates with its predecessor company, Tillotson Pearson Inc., a leading manufacturer of high-performance sail and powerboats along with a wide range of composite structures used in other industrial applications. Following the separation from the boat building business in 2004, the Company reorganized in Delaware as LCSI Holding, Inc. and then changed its corporate name to TPI Composites, Inc. in 2008. Today, the Company is headquartered in Scottsdale, Arizona and has expanded its global footprint to include domestic facilities in Newton, Iowa; Fall River, Massachusetts; Warren, Rhode Island and Santa Teresa, New Mexico and international facilities in Dafeng, China; Taicang Port, China; Taicang City, China; Juárez, Mexico, Matamoros, Mexico, Izmir, Turkey and Kolding, Denmark. The Company divides its business operations into four geographic operating segments—the United States, Asia, Mexico and Europe, the Middle East and Africa (EMEA), as follows: • The U.S. segment includes (1) the manufacturing of wind blades at the Newton, Iowa plant, (2) the manufacturing of precision molding and assembly systems used for the manufacture of wind blades at the Warren, Rhode Island facility, (3) the manufacturing of composite solutions for the transportation industry, which the Company also conducts at its existing Rhode Island and Massachusetts facilities, (4) our advanced engineering center in Kolding, Denmark, which provides technical and engineering resources to our manufacturing facilities and (5) our corporate headquarters, the costs of which are included in general and administrative expenses. In January 2018, the Company entered into a new lease agreement with a third party for a new manufacturing facility in Newton, Iowa and they expect to commence operations at this facility in the first half of 2018. • The Asia segment includes (1) the manufacturing of wind blades at the facility in Taicang Port, China and at its two facilities in Dafeng, China, (2) the manufacturing of precision molding and assembly systems at the Taicang City, China facility, (3) the manufacture of components at the second Taicang Port, China facility and (4) wind blade inspection and repair services. • The Mexico segment manufactures wind blades from its three facilities in Juárez, Mexico, the most recent of which commenced operations in January 2017. In April 2017, the Company entered into a new lease agreement with a third party for a new manufacturing facility in Matamoros, Mexico and they expect to commence operations at this facility in the second half of 2018. • The EMEA segment manufactures wind blades from its two facilities in Izmir, Turkey. The Company entered into a joint venture in 2012 to produce wind blades at the first Turkey plant and in 2013 became the sole owner of the Turkey operation with the acquisition of the remaining 25% interest. The EMEA segment commenced operations at its second facility during the third quarter of 2016. The accompanying consolidated financial statements include the accounts of TPI Composites, Inc. and all majority owned subsidiaries. All significant intercompany transactions and balances have been eliminated. |
Public Offerings and Stock Split | (b) Public Offerings and Stock Split In July 2016, the Company completed an initial public offering (IPO) of 7,187,500 shares of its common stock at a price of $11.00 per share, which included 937,500 shares issued pursuant to the underwriters’ over-allotment option. Certain of the Company’s existing stockholders, a non-employee director and executive officers purchased an aggregate of 1,250,000 shares of common stock in the IPO included in the total issuance above. The net proceeds from the IPO were $67.2 million after deducting underwriting discounts and offering expenses. Immediately prior to the closing of the IPO, all shares of the then-outstanding redeemable preferred shares converted into an aggregate of 21,110,204 shares of common stock and the redeemable preferred share warrants converted on a net issuance basis into 120,923 shares of common stock. In addition, concurrent with the closing of the IPO, certain subordinated convertible promissory notes in the aggregate principal and interest amount of $11.9 million were converted into 1,079,749 shares of common stock at the public offering price of $11.00 per share. Prior to the IPO, in July 2016 the Company amended its amended and restated certificate of incorporation to effect a 360-for-1 forward stock split of its common stock. As a result of the stock split, the Company has adjusted the share amounts authorized and issuable under the share-based compensation plans. All share and per share common stock information (including the share-based compensation plans) referenced throughout the consolidated financial statements and notes thereto have been retroactively adjusted to reflect this stock split. The stock split did not cause an adjustment to the par value of the authorized shares of common stock. In May 2017, the Company completed a secondary public offering of 5,075,000 shares of its common stock at a price of $16.35 per share, which included 575,000 shares issued pursuant to the underwriters’ option to purchase additional shares. All of the shares were sold by existing stockholders and certain of the Company’s executive officers. The selling stockholders received all of the net proceeds of $78.8 million from the secondary public offering. The Company did not sell any shares and did not receive any of the proceeds from the offering and the costs paid by the Company in connection with the offering of $0.8 million were recorded in general and administrative costs in the accompanying consolidated income statement. |
Revenue Recognition | (c) Revenue Recognition The Company records when The precision As these items The Company’s customers Wind blade pricing |
Cost of Goods Sold | (d) Cost of Goods Sold Cost of goods sold includes the costs associated with products invoiced during the period as well as unallocated manufacturing overhead costs associated with startup and transition costs. Cost of sales includes all costs incurred at our production facilities to make products saleable, such as raw materials, direct labor and indirect labor and facilities costs, including purchasing and receiving costs, plant management, inspection costs, product engineering and internal transfer costs. In addition, all depreciation associated with assets used to produce composite products and make them saleable is included in cost of sales. Direct labor costs consist of salaries, benefits and other personnel related costs for employees engaged in the manufacture of our products. Startup costs represent the unallocated overhead related to both new manufacturing facilities as well as new lines in existing manufacturing facilities. Transition costs represent the unallocated overhead related to the transition of wind blade models at the request of our customers. The startup and transition costs are primarily fixed overhead costs incurred during the period production facilities are under-utilized while transitioning wind blade models and ramping up manufacturing, which are not allocated to products and are expensed as incurred. The cost of sales for the initial wind blades from a new model manufacturing line is generally higher than when the line is operating at optimal production volume levels due to inefficiencies during ramp-up related to labor hours per blade, cycle times per blade and raw material usage. Additionally, manufacturing overhead as a percentage of net sales is generally higher during the period in which a facility is ramping up to full production capacity due to underutilization of the facility. Manufacturing overhead at each of our facilities includes virtually all indirect costs (including share-based compensation costs) incurred at the plants, including engineering, finance, information technology, human resources and plant management. |
General and Administrative Expense | (e) General and Administrative Expense General and administrative expenses are primarily incurred at the Company’s corporate headquarters and research facilities and include salaries, benefits and other personnel related costs for employees engaged in research and development, engineering, finance, information technology, human resources, business development, global operational excellence, global supply chain, in-house legal and executive management. Other costs include outside legal and accounting fees, risk management (insurance), share-based compensation and certain other administrative and global resources costs. For the years ended December 31, 2017, 2016 and 2015, total research and development expenses not performed at our manufacturing facilities (included in general and administrative expenses) totaled $1.6 million, $1.5 million and $0.9 million, respectively. |
Cash and Cash Equivalents and Restricted Cash | (f) Cash and Cash Equivalents and Restricted Cash Cash and cash equivalents include highly liquid investments that are readily convertible to known amounts of cash with original maturities of three months or less. The carrying value of cash and cash equivalents approximates fair value. As of December 31, 2017 and 2016, the Taicang plants had unrestricted cash of $42.8 million and $8.3 million, respectively, in bank accounts in China. As of December 31, 2017 and 2016, the Dafeng plant had unrestricted cash of $3.5 million and $4.0 million, respectively, in bank accounts in China. The Chinese government imposes certain restrictions on transferring cash out of China. The local governments in Turkey and Mexico impose no such restrictions on transferring cash out of the respective country. As of December 31, 2017, the Company had provided for cash deposits for letters of guarantee used for customs clearance related to our China locations totaling $3.8 million. As of December 31, 2016, the Company has provided fully cash-collateralized letters of credit in connection with certain facility leases and with one of the Company’s workers’ compensation providers totaling $2.3 million. These amounts are reported as restricted cash in the Company’s consolidated balance sheets. As of December 31, 2017, the Company maintained a long-term deposit in interest bearing accounts, related to fully cash-collateralized letters of credit in connection an equipment lessor in Iowa, totaling $0.5 million. As of December 31, 2016, the Company maintained long-term deposits in interest bearing accounts, related to fully cash-collateralized letters of credit in connection with the facility leases at our Mexico locations and an equipment lessor in Iowa, totaling $8.5 million. See Note 9, Other Noncurrent Assets. |
Accounts Receivable | (g) Accounts Receivable Trade accounts receivable are recorded at the invoiced amount and generally do not bear interest. The Company follows the allowance method of recognizing uncollectible accounts receivable, which recognizes bad debt expense based on a review of the individual accounts outstanding and prior history of uncollectible accounts receivable. Credit is extended based on evaluation of each customer’s financial condition and is generally unsecured. Accounts receivable are generally due within 30 days and are stated net of an allowance for doubtful accounts in the consolidated balance sheets. Accounts are considered past due if outstanding longer than contractual payment terms. The Company records an allowance based on consideration of a number of factors, including the length of time trade accounts are past due, previous loss history, the credit-worthiness of individual customers, economic conditions affecting specific customer industries, and economic conditions in general. The Company charges-off accounts receivable after all reasonable collection efforts have been exhausted. The Company credits payments subsequently received on such receivables to bad debt expense in the period payment is received. The Company records delinquent finance charges on outstanding accounts receivables only if they are collected. The Company wrote off $0.2 million during 2017, $0.5 million during 2016 and did not write off any material amounts due during 2015, and does not have any off-balance-sheet credit exposure related to its customers. See Note 4, Accounts Receivable. |
Inventories | (h) Inventories Inventories are measured at the lower of cost or net realizable value. Net realizable value is defined as the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Cost is determined using the first-in, first-out method for raw materials and specific identification for work in process and finished goods inventories. Actual cost includes the cost of materials, direct labor, and applied manufacturing overhead. Write-downs to reduce the carrying cost of obsolete, slow-moving, and unusable inventory to net realizable value are recognized in cost of goods sold. The effect of these write-downs establishes a new cost basis in the related inventory, which is not subsequently written up. See Note 5, Inventories |
Property, Plant and Equipment | (i) Property, Plant and Equipment Property, plant and equipment are stated at cost. Depreciation and amortization of property, plant, and equipment is calculated on the straight-line method over the estimated useful lives of the assets. See Note 7, Property, Plant and Equipment, Net. Estimated useful lives Machinery and equipment 7–10 years Buildings 20 years Leasehold improvements 5 to 10 years, or the term of the lease, if shorter Office equipment and software 3 to 5 years Furniture 5 years Vehicles 5 years |
Recoverability of Long-Lived Assets | (j) Recoverability of Long-Lived Assets The Company reviews property, plant and equipment and other long-lived assets in order to assess recoverability based on expected future undiscounted cash flows whenever events or circumstances indicate that the carrying value may not be recoverable. If the sum of the expected future net cash flows is less than the carrying value, an impairment loss is recognized. The impairment loss is measured as the amount by which the carrying value exceeds the fair value of the asset. |
Goodwill and Intangible Assets | (k) Goodwill and Intangible Assets Goodwill represents the excess of the acquisition cost of Composite Solutions, Inc. from True North Partners, LLC in 2004 over the fair value of identifiable assets acquired and liabilities assumed. Goodwill, which is entirely in the U.S. segment, is evaluated for impairment annually on October 31 and whenever events or circumstances make it likely that impairment may have occurred. In determining whether impairment has occurred, the Company uses a two-step approach. Step one compares the fair value of the related reporting unit (calculated using the discounted cash flow method) to its carrying value. If the carrying value exceeds the fair value, there is a potential impairment and step two must be performed. Step two compares the carrying value of the reporting unit’s goodwill to its implied fair value (i.e., fair value of reporting unit less the fair value of the unit’s assets and liabilities, including identifiable intangible assets). If the implied fair value of goodwill is less than the carrying amount of goodwill, impairment is recognized for that difference. The Company may Intangible assets were acquired in a business acquisition and provide contractual or legal rights, or other future benefits that could be separately identified. The Company’s valuation of identified intangible assets was based upon discounted cash flow estimates that require significant management judgment with respect to revenue and expense growth rates, changes in working capital, and the selection and use of the appropriate discount rate. The intangible assets are amortized over their estimated useful life. Intangible assets with indefinite lives are evaluated at least annually for impairment or whenever events or circumstances make it likely that impairment may have occurred. See Note 8, Intangible Assets, Net. |
Warranty Expense | (l) Warranty Expense The Company provides a limited warranty for its mold and wind blade products, including parts and labor, with terms and conditions that vary depending on the product sold, generally for periods that range from two to five years. Warranty expense is recorded based upon estimates of future repairs using a probability-based methodology that considers previous warranty claims, identified quality issues and industry practices. Once the warranty period has expired, any remaining unused warranty accrual for the specific products is reversed against the current year warranty expense amount. See Note 10, Accrued Warranty |
Foreign Currency Translation Adjustments | (m) Foreign Currency Translation Adjustments The reporting currency of the Company is the U.S. dollar. However, the Company has non-U.S. operating segments in Mexico, Turkey and China. • The U.S. parent companies of the four Mexico operations, each of which are wholly-owned subsidiaries of TPI Composites, Inc., maintain their books and records in U.S. dollars. • The Mexico operations maintain their books and records through multiple legal entities that are denominated in the local Mexican currency, the Peso. • The Turkey operations maintain their books and records in the local Turkish currency, the Lira. • The U.S. parent company of the China operations and a wholly-owned subsidiary of TPI Composites, Inc., maintains its books and records in U.S. dollars. • The China operations maintain their books and records in the local Chinese currency, the Renminbi. Foreign currency-denominated assets and liabilities are translated into U.S. dollars at exchange rates existing at the respective balance sheet dates. Results of operations of foreign subsidiaries are translated at the average exchange rates during the respective periods. Foreign currency transaction gains and losses are reported in realized loss on foreign currency remeasurement in the Company’s consolidated income statements. Translation adjustments are reported in accumulated other comprehensive loss in the Company’s consolidated balance sheets. Currency translation adjustments for the years ended December 31, 2017, 2016 and 2015 amounted to a gain of $3.3 million and losses of $3.8 million and $2.4 million, respectively. |
Share-Based Compensation | (n) Share-Based Compensation The Company maintains two active incentive compensation plans: the 2008 Stock Option and Grant Plan and the Amended and Restated 2015 Stock Option and Incentive Plan (the 2015 Plan). In May 2015, the Company’s board of directors and stockholders adopted and approved the 2015 Plan, which provides for the issuance of incentive stock options, non-qualified stock options, stock appreciation rights, restricted stock units, restricted stock awards, unrestricted stock awards, cash-based awards, performance share awards and dividend equivalent rights to certain employees, non-employee directors and consultants. The term of stock options issued under the 2015 Plan may not exceed ten years from the date of grant. Under the 2015 Plan, incentive stock options and non-qualified stock options are granted at an exercise price that is not to be less than 100% of the fair market value of the common stock of the Company on the date of grant, as determined by the Compensation Committee of the board of directors. Stock options become vested and exercisable at such times and under such conditions as determined by the Compensation Committee on the date of grant. Upon approval of the 2015 Plan, no future grants will be made from the 2008 Stock Option and Grant Plan. The Company measures share-based compensation expense for stock options using the estimated fair value of the related award on the date of grant using the Black-Scholes valuation model as of the grant date using the following assumptions: Expected Volatility . As the Company’s common stock had not been publicly traded prior to July 2016, the expected volatility assumption reflects an average of volatilities of publicly traded peer group companies with a period equal to the expected life of the options. Expected Life (years) . The Company uses the simplified method to estimate the expected term of stock options. The simplified method for estimating expected term is to use the mid-point between the vesting term and the contractual term of the option. The Company elected to use the simplified method because it did not have historical exercise data to estimate the expected term due to the limited time period its common stock had been publicly traded. Risk-Free Interest Rate . The risk-free interest rate assumption is based upon the U.S. constant maturity treasury rates as the risk-free rate interpolated between the years commensurate with the expected life of the options. Dividend Yield . The dividend yield assumption is zero since the Company does not expect to declare or pay dividends in the foreseeable future. Forfeitures. Share-based compensation expense is reversed when the service-based award is forfeited. Expected Vesting Period . The Company amortizes the share-based compensation expense over the requisite service period. Share-based compensation expense related to restricted stock units is expensed over the vesting period using the straight-line method for Company employees and the Company’s board of directors. The restricted stock units do not have voting rights. The Company calculates the fair value of share-based awards on the date of grant for employees and directors. The Company calculates the fair value of share-based awards to consultants on the date of vesting. |
Leases | (o) Leases Leases are classified as either operating leases or capital leases. Assets acquired under capital leases are amortized on the same basis as similar property, plant and equipment. Rental payments, including rent holidays, leasehold incentives, and scheduled rent increases are expensed on a straight-line basis over the lease term including any applicable renewals. Leasehold improvements are amortized over the shorter of the depreciable lives of the corresponding fixed assets or the lease term including any applicable renewals. Leases In February 2016, the FASB issued ASU 2016-02, Leases |
Income Taxes | (p) Income Taxes Income taxes are accounted for under the asset and liability method in accordance with Financial Accounting Standards Board (FASB) Accounting Standard Codification (ASC) Topic 740, Income Taxes Income Taxes. Income Taxes In December of 2017, the SEC staff issued Staff Accounting Bulletin 118 (SAB 118), which provides relief for companies that have not completed their accounting for the effects of The Tax Cuts and Jobs Act (Tax Reform) but can determine a reasonable estimate of those effects to allow them to include a provisional amount based on their reasonable estimate in their financial statements. The guidance in SAB 118 also allows companies to adjust the provisional amounts during a one-year “measurement period” which is similar to the measurement period used when accounting for business combinations. In the accompanying consolidated financial statements, the Company has not completed its accounting for all the tax effects associated with the enactment of Tax Reform. However, the Company has, in certain cases made a reasonable estimate of the effects on its existing deferred tax balances and the one-time transition tax. There have been no other recent accounting pronouncements or changes in accounting pronouncements during the current year that are of significance, or potential significance, to the Company. |
Net Income Attributable to Preferred Stockholders | (q) Net Income Attributable to Preferred Stockholders Net income attributable to preferred stockholders relates to the accrual of dividends on the Company’s convertible and senior redeemable preferred shares, the accretion to redemption amounts on its convertible preferred shares and warrant fair value adjustment. Immediately prior to the closing of our IPO, all preferred shares were converted into shares of the Company’s common stock and as a result, the accrual of dividends ceased. |
Net Income (Loss) Per Share Calculation | (r) Net Income (Loss) Per Share Calculation The basic net income (loss) per common share is computed by dividing the net income (loss) by the weighted-average number of common shares outstanding during a period. Diluted net income per common share is computed by dividing the net income, adjusted on an as-if-converted basis, by the weighted-average number of common shares outstanding plus potentially dilutive securities. The table below reflects the calculation of the weighted-average number of common shares outstanding, on an as if converted basis, used in computing basic and diluted earnings per common share for the years ended December 31: 2017 2016 2015 (in thousands) Basic weighted-average shares outstanding 33,844 17,530 4,238 Effect of dilutive stock options and warrants 1,018 86 — Diluted weighted-average shares outstanding 34,862 17,616 4,238 The Company did not have potential dilutive securities that are not included in the diluted net income per share calculation for the years ended December 31, 2017 and 2016. The Company had potentially dilutive securities of 4,571,007 outstanding for the year ended December 31, 2015 that are not shown in the diluted net loss per share calculation because their effect would be anti-dilutive. The potentially dilutive securities excluded from the calculation include common shares issued upon conversion or exercise of options and warrants. |
Use of Estimates | (s) Use of Estimates The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant items subject to such estimates and assumptions include the useful lives of property, plant and equipment, realizability of intangible assets and deferred tax assets, inventory valuation, relative selling prices for revenue recognition, fair value of stock options and warrants, warranty reserves and other contingencies. |
Fair Value of Financial Instruments | (t) Fair Value of Financial Instruments FASB ASC Topic 820, Fair Value Measurements 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 that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and Level 3: Valuation is generated from model-based techniques that use significant assumptions not observable in the market. These unobservable assumptions reflect the Company’s own estimate of assumptions that market participants would use in pricing the asset or liability. The carrying amounts of cash and cash equivalents, trade accounts receivable, income taxes receivable, accounts payable and accrued expenses and income taxes payable approximate fair value because of the short-term nature of these financial instruments. The carrying amount of working capital loans approximates fair value due to their short term nature and the loans carry a current market rate of interest, a level 2 input. The carrying value of long-term debt approximates fair value based on its variable rate index or based upon market interest rates available to the Company for debt of similar risk and maturities, both of which are level 2 inputs. |
Recently Issued Accounting Pronouncements | (u) Recently Issued Accounting Pronouncements Revenue from Contracts with Customers In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers The new requirements are effective for the Company beginning January 1, 2018, and may be implemented either retrospectively for all periods presented, or as a cumulative-effect adjustment as of the date of adoption. The Company will adopt Topic 606 as of January 1, 2018 with retrospective application to January 1, 2016 through December 31, 2017. Based on the Company’s evaluation of the new standard, revenue recognition in accordance with Topic 606 differs from the current guidance provided by GAAP as outlined in the Securities and Exchange Commission’s (SEC) Staff Accounting Bulletin 104, which requires the Company to defer recognition of revenue until the risk of loss has passed to the customer and delivery has been made or a fixed delivery schedule has been provided by the customer. As the Company’s products have no alternative use to the Company due to contractual restrictions placed by each customer on the technical specifications and design of the products, the Company has determined that revenue upon adoption of Topic 606 will be recognized over time during the course of the production process and when control is transferred to the customer. The Company expects that the adoption of Topic 606 will have a material impact on the amount of net sales, cost of goods sold and income from operations reported in the consolidated income statements in future periods. In accordance with Topic 606, revenues will be recognized over the course of the production process, whereas currently it is recognized as blades are delivered to the customer. An increased amount of revenue will be recognized at the beginning of production under a contract and upon contract amendments as the learning curve associated with starting up production and transitions of manufacturing lines generates revenue whereas previously these activities would be considered period costs and revenue was recognized when the product was delivered to the customer. Further, since revenue will be recognized over time for manufacturing contracts, future net sales will include amounts related to products that are in production as of the period end. Finally, the gross profit realized in the period and over the remaining term of the contract will be impacted by the changes related to the timing and amount of revenue recognized for products in the production process. Although Topic 606 does not have a cash impact nor an effect on the economics of the Company's underlying customer contracts, applying Topic 606 to contracts in startup and transition will likely result in higher reported earnings in 2018 than under the previous guidance as revenue is shifted to the initial years of startup and transition activities of a contract. The Company expects a corresponding acceleration in timing of cost of goods sold recognition for these contracts upon adoption of Topic 606. Topic 606 will not change the total amount of revenue recognized under the Company’s long-term supply contracts, only accelerate the timing of when the revenue is recognized. Based on the progress made to date on the retrospective application of Topic 606, the Company’s preliminary estimate of the restated net sales and income from operations for the year ended December 31, 2017 is $955 million and $70 million, respectively. Similarly, for the year ended December 31, 2016, the Company’s preliminary estimate of the restated net sales and income from operations is $770 million and $54 million, respectively. The changes noted above involving the timing of revenue recognition will materially impact the amount of reported assets and liabilities on the consolidated balance sheet associated with the Company’s manufacturing contracts. Upon adoption of Topic 606, the Company will include amounts recognized in revenue for products in production as contract assets on the consolidated balance sheet, which differs from the current practice of including the balances in inventory, and will include an amount for the margin recognized to date. The Company will no longer report inventory held for customer orders since revenue will be recognized over the course of the production process, which will include an amount for the margin recognized to date, and before the product is delivered to the customer. Work performed as production takes place will lead to revenue recognition and be included in the consolidated balance sheet under contract assets. The Company expects that contract liabilities will be reported for amounts collected from customers in advance of the production of products. The Company does not expect to have deferred revenue as revenue for products will be recognized over time. The Company does not anticipate a change in the timing of cash receipts and payments from customers as customers will continue to be invoiced as products are completed. In addition, the Company does not expect changes to the aggregate amount of cash flows from operating activities in the consolidated statements of cash flows; however, the impact of changes in the captions on the consolidated balance sheet will have a material effect on the captions within cash flows from operating activities in the consolidated statements of cash flows. The Company has a project plan in place for the transition to revenue recognition in accordance with Topic 606 including necessary changes to accounting processes and procedures, the chart of accounts, the system of internal control and retrospective application of the standard to periods beginning January 1, 2016 through December 31, 2017. The Company has performed the following steps in the project plan for the adoption of Topic 606 and the retrospective application: • Completed an assessment identifying all customer contracts in place as of December 31, 2017, that would have had revenue recognized during the period from January 1, 2016, to current and determined the appropriate application of Topic 606. • Identified the performance obligations within the customer contracts and determined the transaction price, variable consideration and allocation to each performance obligation. • Determined that the performance obligations in our customer contracts are satisfied as control is transferred over time. • Developed models to perform the recalculation of revenue as required by Topic 606 which facilitates the necessary adjusting entries to complete the retrospective application. • Identified and begun necessary enhancements to the Company’s enterprise resource management system to streamline future accounting and financial reporting functions and enhance the system of internal control over financial reporting. The Company has not completed the final validation of the forecasted future net sales and costs and the evaluation of the results of the retrospective application. The Company plans to complete these final steps in time to report in accordance with Topic 606 for the first quarterly filing on Form 10-Q for the three months ended March 31, 2018. However, until these steps are completed, the preliminary estimates presented above are subject to change. |
Cash Flow Presentation | Cash Flow Presentation In August 2016, the FASB issued ASU 2016-15, Classification of Certain Cash Receipts and Cash Payments Restricted Cash |
Summary of Operations and Sig29
Summary of Operations and Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Schedule of Estimated Useful Lives of Property, Plant and Equipment | Property, plant and equipment are stated at cost. Depreciation and amortization of property, plant, and equipment is calculated on the straight-line method over the estimated useful lives of the assets. See Note 7, Property, Plant and Equipment, Net. Estimated useful lives Machinery and equipment 7–10 years Buildings 20 years Leasehold improvements 5 to 10 years, or the term of the lease, if shorter Office equipment and software 3 to 5 years Furniture 5 years Vehicles 5 years |
Calculation Of Weighted-Average Number Of Common Shares Outstanding | The table below reflects the calculation of the weighted-average number of common shares outstanding, on an as if converted basis, used in computing basic and diluted earnings per common share for the years ended December 31: 2017 2016 2015 (in thousands) Basic weighted-average shares outstanding 33,844 17,530 4,238 Effect of dilutive stock options and warrants 1,018 86 — Diluted weighted-average shares outstanding 34,862 17,616 4,238 |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Receivables [Abstract] | |
Summary of Accounts Receivable | Accounts receivable at December 31 consisted of the following: 2017 2016 (in thousands) Trade accounts receivable $ 117,794 $ 66,612 Other accounts receivable 3,782 1,230 Total accounts receivable $ 121,576 $ 67,842 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories at December 31 consisted of the following: 2017 2016 (in thousands) Raw materials $ 28,795 $ 29,278 Work in process 33,623 21,169 Finished goods 4,646 2,648 Total inventories $ 67,064 $ 53,095 |
Prepaid Expenses and Other Cu32
Prepaid Expenses and Other Current Assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |
Schedule of Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets at December 31 consisted of the following: 2017 2016 (in thousands) Refundable value-added tax $ 11,507 $ 5,229 Prepaid customs and duty charges 280 8,289 Deposits 5,585 8,135 Prepaid rebates — 519 Other prepaid expenses 9,357 8,130 Other current assets 778 355 Total prepaid expenses and other current assets $ 27,507 $ 30,657 |
Property, Plant, and Equipmen33
Property, Plant, and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Property Plant And Equipment [Abstract] | |
Schedule of Property Plant and Equipment Net | Property, plant and equipment, net at December 31 consisted of the following: 2017 2016 (in thousands) Machinery and equipment $ 100,681 $ 70,481 Buildings 14,711 13,449 Leasehold improvements 21,853 16,818 Office equipment and software 18,664 6,403 Furniture 19,017 15,883 Vehicles 294 342 Construction in progress 10,687 11,592 Total property, plant and equipment, gross 185,907 134,968 Accumulated depreciation (62,427 ) (43,802 ) Total property, plant and equipment, net $ 123,480 $ 91,166 |
Intangible Assets, Net (Tables)
Intangible Assets, Net (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Carrying Values and Estimated Useful Lives of Intangible Assets | Carrying values and estimated useful lives of intangible assets as of December 31, 2017, consisted of the following: Estimated Useful Life Cost Accumulated Amortization Net (in thousands) Patents 13 years $ 2,000 $ (2,000 ) $ — Trademarks Indefinite 150 — 150 Total intangible assets, net $ 2,150 $ (2,000 ) $ 150 Carrying values and estimated useful lives of intangible assets as of December 31, 2016, consisted of the following: Estimated Useful Life Cost Accumulated Amortization Net (in thousands) Patents 13 years $ 2,000 $ (1,885 ) $ 115 Trademarks Indefinite 150 — 150 Total intangible assets, net $ 2,150 $ (1,885 ) $ 265 |
Other Noncurrent Assets (Tables
Other Noncurrent Assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Other Assets Noncurrent [Abstract] | |
Schedule of Other Noncurrent Assets | Other noncurrent assets at December 31 consisted of the following: 2017 2016 (in thousands) Restricted cash $ 475 $ 8,538 Deferred tax assets 8,304 5,131 Land use right 1,708 1,648 Deposits 3,238 2,422 Other 405 2 Total other noncurrent assets $ 14,130 $ 17,741 |
Accrued Warranty (Tables)
Accrued Warranty (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Product Warranties Disclosures [Abstract] | |
Schedule of Warranty Accrual | Warranty accrual at December 31 consisted of the following: 2017 2016 2015 (in thousands) Warranty accrual at beginning of year $ 19,912 $ 13,596 $ 5,916 Accrual during the year 15,364 18,886 10,653 Cost of warranty services provided during the year (1) (1,986 ) (10,808 ) (1,349 ) Reduction of reserves (4,127 ) (1,762 ) (1,624 ) Warranty accrual at end of year $ 29,163 $ 19,912 $ 13,596 (1) The 2016 amount includes an 8.0 million Euro ($8.5 million) payment related to the Nordex settlement agreement. |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Schedule of Share-Based Compensation Expense recognized in the Consolidated Income Statements | The share-based compensation expense recognized in the consolidated income statements for the years ended December 31 was as follows: 2017 2016 (in thousands) Cost of goods sold $ 1,070 $ 1,505 General and administrative expenses 6,054 8,397 Total share-based compensation expense $ 7,124 $ 9,902 |
Schedule of Share-based Compensation Arrangements by Share-based Payment Award | The share-based compensation expense recognized by award type for the years ended December 31 was as follows: 2017 2016 (in thousands) RSUs $ 2,808 $ 3,457 Stock options 4,316 6,445 Total share-based compensation expense $ 7,124 $ 9,902 |
Summary of Activity for Incentive Plans | The summary of activity for the Company’s incentive plans is as follows: Stock Options RSUs Shares Available for Grant Shares Weighted- Average Exercise Price Options Exercisable Shares Weighted- Average Grant Date Fair Value Balance as of December 31, 2014 1,032,950 35,703 $ 8.49 35,703 — $ — Increase in shares authorized 6,317,031 — — — — Granted (4,001,040 ) 3,269,160 11.92 731,880 10.89 Exercised/vested — — — — — Forfeited/cancelled 43,200 (43,200 ) 10.87 — — Balance as of December 31, 2015 3,392,141 3,261,663 11.90 35,703 731,880 10.89 Increase in shares authorized 169,546 — — — — Granted (493,990 ) 493,990 17.37 — — Exercised/vested — — — — — Forfeited/cancelled 519,995 (424,235 ) 11.78 (95,760 ) 10.87 Balance as of December 31, 2016 3,587,692 3,331,418 12.72 25,828 636,120 10.90 Increase in shares authorized 1,349,475 — — — — Granted (433,700 ) 213,200 19.70 220,500 22.42 Exercised/vested — (138,878 ) 10.83 (218,040 ) 10.95 Forfeited/cancelled 227,650 (202,450 ) 11.54 (25,200 ) 10.87 Balance as of December 31, 2017 4,731,117 3,203,290 13.34 890,433 613,380 15.02 |
Summary of Outstanding and Exercisable Stock Option Awards | The following table summarizes the outstanding and exercisable stock option awards as of December 31, 2017: Options Outstanding Options Exercisable Range of Exercise Prices: Shares Weighted- Average Remaining Contractual Life (in years) Weighted- Average Exercise Price Shares Weighted- Average Exercise Price $8.49 22,728 2.0 $ 8.49 22,728 $ 8.49 $10.87 1,973,349 7.4 10.87 562,615 10.87 $11.00 to $16.53 656,523 8.0 16.12 198,472 16.27 $17.68 to $18.70 342,790 8.4 18.68 106,618 18.68 $18.77 to $22.34 207,900 9.7 19.79 — — $8.49 to $22.34 3,203,290 7.8 13.34 890,433 12.95 |
Additional Information Pertaining to Stock Options | The following table contains additional information pertaining to stock options for the years ended December 31: 2017 2016 2015 (in thousands) Total intrinsic value of stock options outstanding $ 22,804 $ 12,251 $ 34,388 Total intrinsic value of stock options exercisable 6,688 195 498 Cash received from the exercise of stock options 1,430 — — Fair value of stock options vested 4,931 — — |
Assumptions Used to Calculate Fair Value of Stock Options Granted under Black-Scholes Option Pricing Model | The fair value of the stock options granted during the years ended December 31 were calculated using the Black-Scholes option pricing model with the following assumptions: 2017 2016 2015 Weighted-average fair value $ 9.10 $ 5.14 $ 5.02 Expected volatility 45.0 % 45.2 % 42.7 % Expected life 6.3 years 6.3 years 6.3 years Risk-free interest rate 1.5 % 0.9 % 0.7 % Dividend yield 0.0 % 0.0 % 0.0 % |
Long-Term Debt, Net of Debt I38
Long-Term Debt, Net of Debt Issuance Costs and Current Maturities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt, Net of Debt Issuance Costs and Current Maturities | Long-term debt, net of debt issuance costs and current maturities, as of December 31 consisted of the following: 2017 2016 (in thousands) Senior term loan—U.S. $ 71,250 $ 75,000 Senior revolving loan—US 2,820 2,820 Accounts receivable financing—EMEA 14,100 15,120 Unsecured financing—EMEA — 4,638 Equipment financing—EMEA 16,901 15,813 Equipment capital lease—U.S. 536 2,016 Equipment capital lease—EMEA 5,058 1,898 Equipment capital lease—Mexico 12,844 8,037 Equipment loan—Mexico 47 103 Total debt - principal 123,556 125,445 Less: Debt issuance costs (2,171 ) (2,290 ) Total debt, net of debt issuance costs 121,385 123,155 Less: Current maturities of long-term debt (35,506 ) (33,403 ) Long-term debt, net of debt issuance costs and current maturities $ 85,879 $ 89,752 |
Schedule of Future Aggregate Annual Principal Maturities of Debt | The future aggregate annual principal maturities of debt at December 31, 2017, are as follows (in thousands): 2018 $ 35,506 2019 13,146 2020 69,094 2021 4,723 2022 1,087 Total debt - principal $ 123,556 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Lease Payments under Noncancelable Operating Leases | Future minimum lease payments under noncancelable operating leases with terms of one year or more as of December 31, 2017 are as follows (in thousands): 2018 $ 20,608 2019 19,050 2020 17,356 2021 14,090 2022 11,803 Thereafter 43,725 Total future minimum lease payments $ 126,632 |
Defined Contribution Plan (Tabl
Defined Contribution Plan (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Compensation And Retirement Disclosure [Abstract] | |
Summary of Company Matching Contribution Vesting Percentage | Participant vesting occurs in the Company matching contributions according to the schedule below: Years of service Vesting Percentage 1-year anniversary 34 % 2-year anniversary 66 % 3-year anniversary 100 % |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Components of Income Before Income Taxes | Geographic sources of income before income taxes are as follows for the years ended December 31: 2017 2016 2015 (in thousands) United States $ 2,894 $ 5,406 $ (3,165 ) China 41,075 22,826 18,420 Turkey 9,160 (8,564 ) (4,552 ) Mexico 3,641 1,169 956 Total income before income taxes $ 56,770 $ 20,837 $ 11,659 |
Components of Income Tax Provision | The components of the income tax provision for the years ended December 31 are as follows: 2017 2016 2015 (in thousands) Current: U.S. federal $ (49 ) $ — $ (51 ) U.S. state and local taxes (3 ) (196 ) 55 Foreign 14,200 9,973 4,738 Total current 14,148 9,777 4,742 Deferred: U.S. federal (20 ) 51 — U.S. state and local taxes — — — Foreign (1,048 ) (2,833 ) (765 ) Total deferred (1,068 ) (2,782 ) (765 ) Total income tax provision $ 13,080 $ 6,995 $ 3,977 |
Reconciliation from U.S. Statutory Income Tax Rate to Company's Effective Income Tax Rate | The following is a reconciliation from the U.S. statutory income tax rate to the Company’s effective income tax rate for the years ended December 31: 2017 2016 2015 United States statutory income tax rate 35.0 % 34.0 % 34.0 % Foreign rate differential (11.1 ) 5.3 (23.9 ) Foreign permanent differences 1.2 2.4 4.1 China rate change — (4.8 ) — U.S. rate change 19.9 — — Withholding taxes 5.0 6.8 3.4 Foreign tax credits (5.0 ) (7.9 ) 0.0 IRC Section 965 dividend 20.3 — — Foreign tax credits - 965 dividend (13.1 ) — — Nondeductible interest expense — 11.5 — Valuation allowance (28.0 ) (14.3 ) 17.3 State taxes — (0.6 ) 0.5 Deferred tax adjustments 3.7 (0.1 ) 2.3 Research and development (1.2 ) (3.0 ) (3.0 ) U.S. foreign income inclusions — 2.0 — Turkey incentive credits (5.3 ) (2.2 ) (0.4 ) Other 1.6 4.5 (0.2 ) Effective income tax rate 23.0 % 33.6 % 34.1 % |
Summary of Components of Deferred Tax Assets and Liabilities | The following is a summary of the components of deferred tax assets and liabilities at December 31: 2017 2016 2015 (in thousands) Deferred tax assets: Net operating loss and credit carry forwards $ 18,913 $ 25,354 $ 32,294 Deferred revenue 2,616 5,373 6,563 Non-deductible accruals 9,557 8,316 4,825 Equity compensation 3,489 3,503 — Equity investment 390 633 653 Amortization of intangible assets 320 472 720 Tax credits 4,582 2,914 384 Other 3,424 1,248 1,671 Total deferred tax assets 43,291 47,813 47,110 Valuation allowance (29,141 ) (40,596 ) (41,216 ) Net deferred tax assets 14,150 7,217 5,894 Deferred tax liabilities: Deferred revenue (1,497 ) — (615 ) Depreciation (3,489 ) (1,714 ) (1,831 ) Other (1,972 ) (423 ) (1,787 ) Total deferred tax liabilities (6,958 ) (2,137 ) (4,233 ) Net deferred tax assets $ 7,192 $ 5,080 $ 1,661 |
Schedule of Deferred Tax Valuation Allowance | The deferred tax valuation allowance at December 31 consisted of the following: 2017 2016 2015 (in thousands) Allowance at beginning of year $ (40,596 ) $ (41,216 ) $ (39,347 ) Benefits obtained (expenses incurred) 11,455 620 (1,869 ) Allowance at end of year $ (29,141 ) $ (40,596 ) $ (41,216 ) |
Concentration of Customers (Tab
Concentration of Customers (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Risks And Uncertainties [Abstract] | |
Schedule of Revenues from Customers | Revenues from certain customers (in thousands) in excess of 10 percent of total consolidated Company revenues for the years ended December 31 are as follows: 2017 2016 2015 Customer Revenues % of Total Revenues % of Total Revenues % of Total Customer 1 - GE $ 413,245 44.4 % $ 379,941 50.3 % $ 312,495 53.3 % Customer 2 - Vestas 264,774 28.5 % 152,106 20.1 % 50,031 8.5 % Customer 3 - Nordex Acciona 153,962 16.6 % 131,775 17.5 % 154,927 26.5 % Customer 4 - Siemens Gamesa 83,895 9.0 % 81,463 10.8 % 60,544 10.3 % Other 14,405 1.5 % 9,592 1.3 % 7,855 1.4 % Total $ 930,281 100.0 % $ 754,877 100.0 % $ 585,852 100.0 % |
Schedule of Trade Accounts Receivable from Certain Customers | Trade accounts receivable from certain customers in excess of 10 percent of total consolidated Company trade accounts receivable at December 31 are as follows: 2017 2016 Customer % of Total % of Total Customer 1 - GE 18.9 % 24.9 % Customer 2 - Vestas 52.4 % 26.2 % Customer 3 - Nordex Acciona 19.5 % 26.8 % Customer 4 - Siemens Gamesa 4.9 % 16.2 % |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Schedule of Segment Information | The following tables set forth certain information regarding each of the Company’s segments for the years ended December 31: 2017 2016 2015 (in thousands) Net sales by segment: U.S. $ 181,889 $ 190,092 $ 149,614 Asia 361,696 301,893 206,779 Mexico 195,960 129,756 97,912 EMEA 190,736 133,136 131,547 Total net sales $ 930,281 $ 754,877 $ 585,852 Net sales by geographic location (1): United States $ 181,889 $ 190,092 $ 149,614 China 361,696 301,893 206,779 Mexico 195,960 129,756 97,912 Turkey 190,736 133,136 131,547 Total net sales $ 930,281 $ 754,877 $ 585,852 Depreciation and amortization: U.S. $ 4,821 $ 3,336 $ 3,477 Asia 6,083 4,534 4,181 Mexico 5,365 2,328 1,533 EMEA 4,609 2,699 2,225 Total depreciation and amortization $ 20,878 $ 12,897 $ 11,416 Capital expenditures U.S. $ 10,575 $ 4,056 $ 5,379 Asia 7,000 3,287 15,632 Mexico 20,033 5,565 2,897 EMEA 7,220 17,599 2,453 Total capital expenditures $ 44,828 $ 30,507 $ 26,361 Income (loss) from operations: U.S. $ (39,571 ) $ (25,099 ) $ (13,405 ) Asia 77,106 64,393 34,998 Mexico 13,130 9,546 7,531 EMEA 21,671 (5,727 ) (1,505 ) Total income from operations $ 72,336 $ 43,113 $ 27,619 Tangible long-lived assets: U.S. $ 24,575 $ 16,740 Asia (China) 28,887 26,341 Mexico 39,756 24,842 EMEA (Turkey) 30,262 23,243 Total tangible long-lived assets $ 123,480 $ 91,166 Total assets: U.S. $ 141,846 $ 115,213 Asia 225,537 172,315 Mexico 88,914 68,231 EMEA 117,237 81,447 Total assets $ 573,534 $ 437,206 (1) Net sales are attributable to countries based on the location where the product is manufactured or the services are performed. In 2015, the total assets of the parent company of Asia were included in the U.S. segment’s total assets, whereas in 2016 and 2017, their total assets are included in the Asia segment’s total assets. |
Selected Quarterly Financial 44
Selected Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Selected Quarterly Financial Data | The following tables set forth certain unaudited financial information for each quarter of 2017 and 2016. The unaudited quarterly information includes all normal recurring adjustments that, in the opinion of management, are necessary for the fair presentation of the information for the periods presented. The operating results for any quarter are not necessarily indicative of the results for any future period. The unaudited quarterly results are as follows: 2017 First Quarter Second Quarter Third Quarter Fourth Quarter (in thousands, except per share data) Net sales $ 191,602 $ 248,186 $ 243,354 $ 247,139 Income from operations 9,714 23,799 23,546 15,277 Net income 3,545 13,858 20,398 5,889 Net income attributable to common stockholders 3,545 13,858 20,398 5,889 Net income per common share: Basic (1) $ 0.11 $ 0.41 $ 0.60 $ 0.17 Diluted (1) $ 0.10 $ 0.41 $ 0.58 $ 0.17 2016 First Quarter Second Quarter Third Quarter Fourth Quarter (in thousands, except per share data) Net sales $ 176,110 $ 194,255 $ 198,938 $ 185,574 Income from operations 8,189 17,478 8,137 9,309 Net income (loss) 1,746 11,555 2,797 (2,256 ) Net income (loss) attributable to common stockholders (691 ) 9,117 2,201 (2,256 ) Net income (loss) per common share: Basic (1) $ (0.16 ) $ 2.15 $ 0.08 $ (0.07 ) Diluted (1) $ (0.16 ) $ 2.15 $ 0.08 $ (0.07 ) (1) The sum of the quarterly net income (loss) per common share amounts may not equal the annual net income (loss) per common share amount due to rounding. |
Summary of Operations and Sig45
Summary of Operations and Significant Accounting Policies - Description of Business and Basis of Presentation - Additional Information (Detail) | 12 Months Ended | |
Dec. 31, 2017SegmentFacility | Dec. 31, 2013 | |
Operations And Summary Of Significant Accounting Policies [Line Items] | ||
Number of operating segments | Segment | 4 | |
Mexico [Member] | ||
Operations And Summary Of Significant Accounting Policies [Line Items] | ||
Number of manufacturing facilities | 3 | |
EMEA [Member] | ||
Operations And Summary Of Significant Accounting Policies [Line Items] | ||
Number of manufacturing facilities | 2 | |
Joint venture remaining ownership percentage acquired | 25.00% | |
Asia Segment [Member] | Dafeng [Member] | ||
Operations And Summary Of Significant Accounting Policies [Line Items] | ||
Number of manufacturing facilities | 2 |
Summary of Operations and Sig46
Summary of Operations and Significant Accounting Policies - Public Offerings and Stock Split - Additional Information (Detail) | 1 Months Ended | 12 Months Ended | ||
May 31, 2017USD ($)$ / sharesshares | Jul. 31, 2016USD ($)$ / sharesshares | Dec. 31, 2016USD ($) | Jun. 30, 2016shares | |
Operations And Summary Of Significant Accounting Policies [Line Items] | ||||
Net proceeds from Initial public offering | $ | $ 67,199,000 | |||
Conversion of convertible promissory notes | $ | $ 11,877,000 | |||
Initial Public Offering [Member] | ||||
Operations And Summary Of Significant Accounting Policies [Line Items] | ||||
Public offering shares | 7,187,500 | |||
Share price | $ / shares | $ 11 | |||
Net proceeds from Initial public offering | $ | $ 67,200,000 | |||
Initial Public Offering [Member] | Subordinated Convertible Promissory Notes [Member] | ||||
Operations And Summary Of Significant Accounting Policies [Line Items] | ||||
Share price | $ / shares | $ 11 | |||
Debt instrument convertible number of equity shares | 1,079,749 | |||
Initial Public Offering [Member] | Common Stock Warrants [Member] | ||||
Operations And Summary Of Significant Accounting Policies [Line Items] | ||||
Number of common stock issue on conversion of preferred share | 120,923 | |||
Initial Public Offering [Member] | Redeemable Preferred Shares [Member] | ||||
Operations And Summary Of Significant Accounting Policies [Line Items] | ||||
Number of common stock issue on conversion of preferred share | 21,110,204 | |||
Initial Public Offering [Member] | Investors, Non-employee Director and Executive Officers [Member] | ||||
Operations And Summary Of Significant Accounting Policies [Line Items] | ||||
Public offering shares | 1,250,000 | |||
Underwriters Over-allotment Option [Member] | ||||
Operations And Summary Of Significant Accounting Policies [Line Items] | ||||
Public offering shares | 937,500 | |||
Underwriters Over-allotment Option [Member] | Existing Shareholders and Executive Officers [Member] | ||||
Operations And Summary Of Significant Accounting Policies [Line Items] | ||||
Public offering shares | 575,000 | |||
Initial Public Offering and Stock Split [Member] | ||||
Operations And Summary Of Significant Accounting Policies [Line Items] | ||||
Conversion of convertible promissory notes | $ | $ 11,900,000 | |||
Prior to IPO [Member] | ||||
Operations And Summary Of Significant Accounting Policies [Line Items] | ||||
Common stock forward stock split ratio | 360 | |||
Secondary Public Offering [Member] | ||||
Operations And Summary Of Significant Accounting Policies [Line Items] | ||||
Public offering shares | 0 | |||
Net proceeds from from secondary public offering to selling stockholders | $ | $ 78,800,000 | |||
Proceeds from secondary public offering | $ | 0 | |||
Secondary Public Offering [Member] | General and Administrative Costs [Member] | ||||
Operations And Summary Of Significant Accounting Policies [Line Items] | ||||
Offering costs paid | $ | $ 800,000 | |||
Secondary Public Offering [Member] | Existing Shareholders and Executive Officers [Member] | ||||
Operations And Summary Of Significant Accounting Policies [Line Items] | ||||
Public offering shares | 5,075,000 | |||
Share price | $ / shares | $ 16.35 |
Summary of Operations and Sig47
Summary of Operations and Significant Accounting Policies - General and Administrative Expense - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
General and Administrative Costs [Member] | |||
Operations And Summary Of Significant Accounting Policies [Line Items] | |||
Research and development expense | $ 1.6 | $ 1.5 | $ 0.9 |
Summary of Operations and Sig48
Summary of Operations and Significant Accounting Policies - Cash and Cash Equivalents and Restricted Cash - Additional Information (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Operations And Summary Of Significant Accounting Policies [Line Items] | ||
Cash-collateralized letter of credit, current | $ 3,849 | $ 2,259 |
Cash-collateralized letter of credit, non current | 475 | 8,538 |
China [Member] | ||
Operations And Summary Of Significant Accounting Policies [Line Items] | ||
Unrestricted Cash | 46,300 | |
Cash-collateralized letter of credit, current | 3,800 | |
Taicang Plants [Member] | China [Member] | ||
Operations And Summary Of Significant Accounting Policies [Line Items] | ||
Unrestricted Cash | 42,800 | 8,300 |
Dafeng Plant [Member] | China [Member] | ||
Operations And Summary Of Significant Accounting Policies [Line Items] | ||
Unrestricted Cash | $ 3,500 | $ 4,000 |
Summary of Operations and Sig49
Summary of Operations and Significant Accounting Policies - Accounts Receivable - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Accounting Policies [Abstract] | |||
Accounts receivables, written off | $ 200,000 | $ 500,000 | $ 0 |
Summary of Operations and Sig50
Summary of Operations and Significant Accounting Policies - Schedule of Estimated Useful Lives of Property, Plant and Equipment (Detail) | 12 Months Ended |
Dec. 31, 2017 | |
Machinery and Equipment [Member] | Minimum [Member] | |
Property Plant And Equipment [Line Items] | |
Estimated useful lives | 7 years |
Machinery and Equipment [Member] | Maximum [Member] | |
Property Plant And Equipment [Line Items] | |
Estimated useful lives | 10 years |
Buildings [Member] | |
Property Plant And Equipment [Line Items] | |
Estimated useful lives | 20 years |
Leasehold Improvements [Member] | |
Property Plant And Equipment [Line Items] | |
Estimated useful lives | 5 to 10 years, or the term of the lease,if shorter |
Leasehold Improvements [Member] | Minimum [Member] | |
Property Plant And Equipment [Line Items] | |
Estimated useful lives | 5 years |
Leasehold Improvements [Member] | Maximum [Member] | |
Property Plant And Equipment [Line Items] | |
Estimated useful lives | 10 years |
Office Equipment and Software [Member] | Minimum [Member] | |
Property Plant And Equipment [Line Items] | |
Estimated useful lives | 3 years |
Office Equipment and Software [Member] | Maximum [Member] | |
Property Plant And Equipment [Line Items] | |
Estimated useful lives | 5 years |
Furniture [Member] | |
Property Plant And Equipment [Line Items] | |
Estimated useful lives | 5 years |
Vehicles [Member] | |
Property Plant And Equipment [Line Items] | |
Estimated useful lives | 5 years |
Summary of Operations and Sig51
Summary of Operations and Significant Accounting Policies - Warranty Expense - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2017 | |
Minimum [Member] | |
Operations And Summary Of Significant Accounting Policies [Line Items] | |
Limited warranty period | 2 years |
Maximum [Member] | |
Operations And Summary Of Significant Accounting Policies [Line Items] | |
Limited warranty period | 5 years |
Summary of Operations and Sig52
Summary of Operations and Significant Accounting Policies - Foreign Currency Translation Adjustments - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Accounting Policies [Abstract] | |||
Foreign currency translation adjustments | $ 3,304 | $ (3,837) | $ (2,363) |
Summary of Operations and Sig53
Summary of Operations and Significant Accounting Policies - Share-Based Compensation - Additional Information (Detail) | 12 Months Ended | |||
Dec. 31, 2017Planshares | Dec. 31, 2016shares | Dec. 31, 2015shares | Dec. 31, 2014shares | |
Operations And Summary Of Significant Accounting Policies [Line Items] | ||||
Number of active incentive compensation plans | Plan | 2 | |||
Shares available for grant | 4,731,117 | 3,587,692 | 3,392,141 | 1,032,950 |
Expected dividend yield | 0.00% | |||
2015 Stock Option and Incentive Plan [Member] | Minimum [Member] | ||||
Operations And Summary Of Significant Accounting Policies [Line Items] | ||||
Percentage of common stock fair market value on incentive stock options and non-qualified stock options granted at exercise price | 100.00% | |||
2015 Stock Option and Incentive Plan [Member] | Maximum [Member] | ||||
Operations And Summary Of Significant Accounting Policies [Line Items] | ||||
Stock options expiration term | 10 years | |||
2008 Stock Option and Grant Plan [Member] | ||||
Operations And Summary Of Significant Accounting Policies [Line Items] | ||||
Shares available for grant | 0 |
Summary of Operations and Sig54
Summary of Operations and Significant Accounting Policies - Calculation Of Weighted-Average Number Of Common Shares Outstanding (Detail) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |||
Basic weighted-average shares outstanding | 33,844 | 17,530 | 4,238 |
Effect of dilutive stock options and warrants | 1,018 | 86 | |
Diluted weighted-average shares outstanding | 34,862 | 17,616 | 4,238 |
Summary of Operations and Sig55
Summary of Operations and Significant Accounting Policies - Net Income (Loss) Per Share Calculation - Additional Information (Detail) - shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Accounting Policies [Abstract] | |||
Potentially dilutive securities outstanding | 0 | 0 | 4,571,007 |
Summary of Operations and Sig56
Summary of Operations and Significant Accounting Policies - Recently Issued Accounting Pronouncements - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Item Effected [Line Items] | |||||||||||
Net sales (Note 3) | $ 247,139 | $ 243,354 | $ 248,186 | $ 191,602 | $ 185,574 | $ 198,938 | $ 194,255 | $ 176,110 | $ 930,281 | $ 754,877 | $ 585,852 |
Income from operations | $ 15,277 | $ 23,546 | $ 23,799 | $ 9,714 | $ 9,309 | $ 8,137 | $ 17,478 | $ 8,189 | 72,336 | 43,113 | $ 27,619 |
ASU 2014-09 [Member] | |||||||||||
Item Effected [Line Items] | |||||||||||
Net sales (Note 3) | 955,000 | 770,000 | |||||||||
Income from operations | $ 70,000 | $ 54,000 |
Significant Risks and Uncerta57
Significant Risks and Uncertainties - Additional Information (Detail) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Concentration Risk [Line Items] | ||
Cash in short-term deposits in interest bearing accounts | $ 3,849,000 | $ 2,259,000 |
Cash in long term deposits | 3,238,000 | 2,422,000 |
U.S. [Member] | ||
Concentration Risk [Line Items] | ||
Cash in deposit accounts | 98,900,000 | 103,400,000 |
Turkey [Member] | ||
Concentration Risk [Line Items] | ||
Cash in deposit accounts | 700,000 | |
China [Member] | ||
Concentration Risk [Line Items] | ||
Cash in deposit accounts | 46,300,000 | |
Cash in short-term deposits in interest bearing accounts | 3,800,000 | |
Mexico [Member] | ||
Concentration Risk [Line Items] | ||
Cash in deposit accounts | 2,200,000 | |
Iowa [Member] | ||
Concentration Risk [Line Items] | ||
Cash in long term deposits | 500,000 | |
Maximum [Member] | ||
Concentration Risk [Line Items] | ||
Cash deposit insured amount | $ 250,000 | $ 250,000 |
Related-Party Transactions - Ad
Related-Party Transactions - Additional Information (Detail) $ / shares in Units, $ in Millions | 1 Months Ended | 6 Months Ended | 12 Months Ended | ||||
May 31, 2017$ / sharesshares | Jul. 31, 2016$ / sharesshares | Jun. 30, 2017USD ($) | Dec. 31, 2017USD ($)Agreement | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Jan. 31, 2016USD ($) | |
Initial Public Offering [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Public offering shares | 7,187,500 | ||||||
Share price | $ / shares | $ 11 | ||||||
Secondary Public Offering [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Public offering shares | 0 | ||||||
Investor, Executive Officers and Director [Member] | Initial Public Offering [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Public offering shares | 1,250,000 | ||||||
Subordinated Convertible Promissory Notes [Member] | Initial Public Offering [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Debt instrument convertible number of equity shares | 1,079,749 | ||||||
Share price | $ / shares | $ 11 | ||||||
GE [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Number of supply agreements | Agreement | 5 | ||||||
Proceeds from sales | $ | $ 187.3 | $ 413.2 | $ 379.9 | $ 312.5 | |||
Accounts receivables, related party | $ | $ 22.2 | $ 16.6 | |||||
Advance received | $ | $ 2 | ||||||
GE [Member] | Agreements in Taicang Port and Izmir [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Agreement expiration date | Dec. 31, 2017 | ||||||
GE [Member] | Maximum [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Percentage of common stock outstanding | 5.00% | ||||||
Certain Entities Associated with Element Partners, Angeleno Group Landmark Partners and NGP Energy Technology Partners, L.P and Certain Executive Officers [Member] | Secondary Public Offering [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Public offering shares | 5,075,000 | ||||||
Share price | $ / shares | $ 16.35 |
Accounts Receivable - Summary o
Accounts Receivable - Summary of Accounts Receivable (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total accounts receivable | $ 121,576 | $ 67,842 |
Trade Accounts Receivable [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total accounts receivable | 117,794 | 66,612 |
Other Accounts Receivable [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total accounts receivable | $ 3,782 | $ 1,230 |
Inventories - Schedule of Inven
Inventories - Schedule of Inventories (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 28,795 | $ 29,278 |
Work in process | 33,623 | 21,169 |
Finished goods | 4,646 | 2,648 |
Total inventories | $ 67,064 | $ 53,095 |
Prepaid Expenses and Other Cu61
Prepaid Expenses and Other Current Assets - Schedule of Prepaid Expenses and Other Current Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Prepaid Expense And Other Assets Current [Abstract] | ||
Refundable value-added tax | $ 11,507 | $ 5,229 |
Prepaid customs and duty charges | 280 | 8,289 |
Deposits | 5,585 | 8,135 |
Prepaid rebates | 519 | |
Other prepaid expenses | 9,357 | 8,130 |
Other current assets | 778 | 355 |
Total prepaid expenses and other current assets | $ 27,507 | $ 30,657 |
Property, Plant, and Equipmen62
Property, Plant, and Equipment, Net - Schedule of Property Plant and Equipment Net (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 185,907 | $ 134,968 |
Accumulated depreciation | (62,427) | (43,802) |
Total property, plant and equipment, net | 123,480 | 91,166 |
Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 100,681 | 70,481 |
Buildings [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 14,711 | 13,449 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 21,853 | 16,818 |
Office Equipment and Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 18,664 | 6,403 |
Furniture [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 19,017 | 15,883 |
Vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 294 | 342 |
Construction in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 10,687 | $ 11,592 |
Property, Plant, and Equipmen63
Property, Plant, and Equipment, Net - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Property Plant And Equipment [Abstract] | |||
Total depreciation expense | $ 20.8 | $ 12.7 | $ 10.6 |
Cost of property plant and equipment leased under capital lease arrangements | 29.7 | 23.4 | |
Accumulated depreciation of property plant and equipment under capital lease arrangements | $ 8 | $ 4.4 |
Intangible Assets, Net - Schedu
Intangible Assets, Net - Schedule of Carrying Values and Estimated Useful Lives of Intangible Assets - (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Finite And Indefinite Lived Intangible Assets [Line Items] | ||
Total intangible assets, Cost | $ 2,150 | $ 2,150 |
Total intangible assets, Accumulated Amortization | (2,000) | (1,885) |
Total intangible assets, Net | 150 | 265 |
Trademarks [Member] | ||
Finite And Indefinite Lived Intangible Assets [Line Items] | ||
Total intangible assets, Net | $ 150 | $ 150 |
Patents [Member] | ||
Finite And Indefinite Lived Intangible Assets [Line Items] | ||
Total intangible assets, Estimated Useful Life | 13 years | 13 years |
Total intangible assets, Cost | $ 2,000 | $ 2,000 |
Total intangible assets, Accumulated Amortization | $ (2,000) | (1,885) |
Total intangible assets, Net | $ 115 |
Intangible Assets, Net - Additi
Intangible Assets, Net - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |||
Amortization expense | $ 0.1 | $ 0.2 | $ 0.8 |
Other Noncurrent Assets - Sched
Other Noncurrent Assets - Schedule of Other Noncurrent Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Other Assets Noncurrent [Abstract] | ||
Restricted cash | $ 475 | $ 8,538 |
Deferred tax assets | 8,304 | 5,131 |
Land use right | 1,708 | 1,648 |
Deposits | 3,238 | 2,422 |
Other | 405 | 2 |
Total other noncurrent assets | $ 14,130 | $ 17,741 |
Other Noncurrent Assets - Addit
Other Noncurrent Assets - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | |
Other Noncurrent Assets [Line Items] | |||
Restricted cash | $ 475 | $ 8,538 | |
China [Member] | Land Use Right [Member] | |||
Other Noncurrent Assets [Line Items] | |||
Amortizing land use right on straight-line basis | 50 years | ||
Letter of Credit [Member] | Iowa [Member] | |||
Other Noncurrent Assets [Line Items] | |||
Restricted cash | $ 500 | 500 | |
Letter of Credit [Member] | Mexico [Member] | |||
Other Noncurrent Assets [Line Items] | |||
Restricted cash | $ 8,100 | ||
Letter of Credit Sub Facility [Member] | |||
Other Noncurrent Assets [Line Items] | |||
Restricted cash | $ 8,100 |
Accrued Warranty - Schedule of
Accrued Warranty - Schedule of Warranty Accrual (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Product Warranties Disclosures [Abstract] | |||
Warranty accrual at beginning of year | $ 19,912 | $ 13,596 | $ 5,916 |
Accrual during the year | 15,364 | 18,886 | 10,653 |
Cost of warranty services provided during the year | (1,986) | (10,808) | (1,349) |
Reduction of reserves | (4,127) | (1,762) | (1,624) |
Warranty accrual at end of year | $ 29,163 | $ 19,912 | $ 13,596 |
Accrued Warranty - Schedule o69
Accrued Warranty - Schedule of Warranty Accrual (Detail) (Parenthetical) $ in Thousands, € in Millions | 12 Months Ended | |||
Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2016EUR (€) | Dec. 31, 2015USD ($) | |
Product Warranty Liability [Line Items] | ||||
Warranties payment | $ 1,986 | $ 10,808 | $ 1,349 | |
Nordex Settlement [Member] | ||||
Product Warranty Liability [Line Items] | ||||
Warranties payment | $ 8,500 | € 8 |
Customer Deposits - Additional
Customer Deposits - Additional Information (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Other Liabilities Disclosure [Abstract] | ||
Customer deposits | $ 10.1 | $ 1.4 |
Share-Based Compensation Plans
Share-Based Compensation Plans - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total share-based compensation expense | $ 7,124,000 | $ 9,902,000 | $ 0 |
Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 1 year 6 months | 1 year 9 months 18 days | |
Total share-based compensation expense | $ 2,808,000 | $ 3,457,000 | |
Grant date fair value of awards vested during period | $ 2,400,000 | ||
Shares repurchased for awards | 68,815 | ||
Shares repurchased for tax witholding requirements, value | $ 1,300,000 | ||
Unamortized amount of share-based compensation expense | $ 5,000,000 | $ 2,800,000 | |
Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 1 year 9 months 18 days | 2 years 1 month 6 days | |
Total share-based compensation expense | $ 4,316,000 | $ 6,445,000 | |
Total unrecognized cost related to non-vested stock option awards | $ 4,800,000 | $ 7,300,000 | |
Service Period From Grant Date Through December 31, 2015 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total share-based compensation expense | $ 3,600,000 | ||
2015 Stock Option and Incentive Plan [Member] | Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 1 year | ||
2015 Stock Option and Incentive Plan [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 4 years |
Share-Based Compensation Plan72
Share-Based Compensation Plans - Schedule of Share Based Compensation Expense Recognized in Consolidated Income Statements (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total share-based compensation expense | $ 7,124,000 | $ 9,902,000 | $ 0 |
Cost of Goods Sold [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total share-based compensation expense | 1,070,000 | 1,505,000 | |
General and Administrative Costs [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total share-based compensation expense | $ 6,054,000 | $ 8,397,000 |
Share-Based Compensation Plan73
Share-Based Compensation Plans - Schedule of Share-based Compensation Arrangements by Share-based Payment Award (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total share-based compensation expense | $ 7,124,000 | $ 9,902,000 | $ 0 |
Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total share-based compensation expense | 2,808,000 | 3,457,000 | |
Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total share-based compensation expense | $ 4,316,000 | $ 6,445,000 |
Share-Based Compensation - Summ
Share-Based Compensation - Summary of Activity for Incentive Plans (Detail) - $ / shares | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock Options, Shares Available for Grant, Beginning balance | 3,587,692 | 3,392,141 | 1,032,950 | |
Stock Options, Shares Available for Grant, Increase in shares authorized | 1,349,475 | 169,546 | 6,317,031 | |
Stock Options, Shares Available for Grant, Granted | (433,700) | (493,990) | (4,001,040) | |
Stock Options, Shares Available for Grant, Exercised/vested | 0 | 0 | 0 | |
Stock Options, Shares Available for Grant, Forfeited/cancelled | 227,650 | 519,995 | 43,200 | |
Stock Options, Shares Available for Grant, Ending balance | 4,731,117 | 3,587,692 | 3,392,141 | |
Stock Options, Shares, Beginning balance | 3,331,418 | 3,261,663 | 35,703 | |
Stock Options, Shares, Increase in shares authorized | 0 | 0 | 0 | |
Stock Options, Shares, Granted | 213,200 | 493,990 | 3,269,160 | |
Stock Options, Shares, Exercised/vested | (138,878) | 0 | 0 | |
Stock Options, Shares, Forfeited/cancelled | (202,450) | (424,235) | (43,200) | |
Stock Options, Shares, Ending balance | 3,203,290 | 3,331,418 | 3,261,663 | |
Stock Options, Weighted-Average Exercise Price, Beginning balance | $ 12.72 | $ 11.90 | $ 8.49 | |
Stock Options, Weighted-Average Exercise Price, Increase in shares authorized | 0 | 0 | 0 | |
Stock Options, Weighted-Average Exercise Price, Granted | 19.70 | 17.37 | 11.92 | |
Stock Options, Weighted-Average Exercise Price, Exercised/vested | 10.83 | 0 | 0 | |
Stock Options, Weighted-Average Exercise Price, Forfeited/cancelled | 11.54 | 11.78 | 10.87 | |
Stock Options, Weighted-Average Exercise Price, Ending balance | $ 13.34 | $ 12.72 | $ 11.90 | |
Stock Options, Options Exercisable, Beginning balance | 890,433 | 25,828 | 35,703 | 35,703 |
Restricted Stock Units (RSUs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
RSUs, Shares, Beginning balance | 636,120 | 731,880 | 0 | |
RSUs, Shares, Increase in shares authorized | 0 | 0 | 0 | |
RSUs, Shares, Granted | 220,500 | 0 | 731,880 | |
RSUs, Units, Exercised/vested | (218,040) | 0 | 0 | |
RSUs, Shares, Forfeited/cancelled | (25,200) | (95,760) | 0 | |
RSUs, Shares, Ending balance | 613,380 | 636,120 | 731,880 | |
RSUs, Weighted-Average Grant Date Fair Value, Beginning balance | $ 10.90 | $ 10.89 | $ 0 | |
RSUs, Weighted-Average Grant Date Fair Value, Increase in shares authorized | 0 | 0 | 0 | |
RSUs, Weighted-Average Grant Date Fair Value, Granted | 22.42 | 0 | 10.89 | |
RSUs, Weighted-Average Grant Date Fair Value, Exercised/vested | 10.95 | 0 | 0 | |
RSUs, Weighted-Average Grant Date Fair Value, Forfeited/cancelled | 10.87 | 10.87 | 0 | |
RSUs, Weighted-Average Grant Date Fair Value, Ending balance | $ 15.02 | $ 10.90 | $ 10.89 |
Share-Based Compensation - Su75
Share-Based Compensation - Summary of Outstanding and Exercisable Stock Option Awards (Detail) | 12 Months Ended |
Dec. 31, 2017$ / sharesshares | |
Range One [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices, Minimum | $ 8.49 |
Options Outstanding, Shares | shares | 22,728 |
Options Outstanding, Weighted-Average Remaining Contractual Life (in years) | 2 years |
Options Outstanding, Weighted-Average Exercise Price | $ 8.49 |
Options Exercisable, Shares | shares | 22,728 |
Options Exercisable, Weighted-Average Exercise Price | $ 8.49 |
Range Two [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices, Minimum | $ 10.87 |
Options Outstanding, Shares | shares | 1,973,349 |
Options Outstanding, Weighted-Average Remaining Contractual Life (in years) | 7 years 4 months 24 days |
Options Outstanding, Weighted-Average Exercise Price | $ 10.87 |
Options Exercisable, Shares | shares | 562,615 |
Options Exercisable, Weighted-Average Exercise Price | $ 10.87 |
Range Three [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices, Minimum | 11 |
Range of Exercise Prices, Maximum | $ 16.53 |
Options Outstanding, Shares | shares | 656,523 |
Options Outstanding, Weighted-Average Remaining Contractual Life (in years) | 8 years |
Options Outstanding, Weighted-Average Exercise Price | $ 16.12 |
Options Exercisable, Shares | shares | 198,472 |
Options Exercisable, Weighted-Average Exercise Price | $ 16.27 |
Range Four [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices, Minimum | 17.68 |
Range of Exercise Prices, Maximum | $ 18.70 |
Options Outstanding, Shares | shares | 342,790 |
Options Outstanding, Weighted-Average Remaining Contractual Life (in years) | 8 years 4 months 24 days |
Options Outstanding, Weighted-Average Exercise Price | $ 18.68 |
Options Exercisable, Shares | shares | 106,618 |
Options Exercisable, Weighted-Average Exercise Price | $ 18.68 |
Range Five [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices, Minimum | 18.77 |
Range of Exercise Prices, Maximum | $ 22.34 |
Options Outstanding, Shares | shares | 207,900 |
Options Outstanding, Weighted-Average Remaining Contractual Life (in years) | 9 years 8 months 12 days |
Options Outstanding, Weighted-Average Exercise Price | $ 19.79 |
Range Six [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices, Minimum | 8.49 |
Range of Exercise Prices, Maximum | $ 22.34 |
Options Outstanding, Shares | shares | 3,203,290 |
Options Outstanding, Weighted-Average Remaining Contractual Life (in years) | 7 years 9 months 18 days |
Options Outstanding, Weighted-Average Exercise Price | $ 13.34 |
Options Exercisable, Shares | shares | 890,433 |
Options Exercisable, Weighted-Average Exercise Price | $ 12.95 |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information Pertaining to Stock Options (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||
Total intrinsic value of stock options outstanding | $ 22,804 | $ 12,251 | $ 34,388 |
Total intrinsic value of stock options exercisable | 6,688 | $ 195 | $ 498 |
Cash received from the exercise of stock options | 1,430 | ||
Fair value of stock options vested | $ 4,931 |
Share-Based Compensation - Assu
Share-Based Compensation - Assumptions Used to Calculate Fair Value of Stock Options Granted under Black-Scholes Option Pricing Model (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Dividend yield | 0.00% | ||
Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted-average fair value | $ 9.10 | $ 5.14 | $ 5.02 |
Expected volatility | 45.00% | 45.20% | 42.70% |
Expected life | 6 years 3 months 18 days | 6 years 3 months 18 days | 6 years 3 months 18 days |
Risk-free interest rate | 1.50% | 0.90% | 0.70% |
Dividend yield | 0.00% | 0.00% | 0.00% |
Long-Term Debt, Net of Debt I78
Long-Term Debt, Net of Debt Issuance Costs and Current Maturities - Schedule of Long-Term Debt, Net of Debt Issuance Costs and Current Maturities (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Total long-term debt | ||
Total long-term debt | $ 123,556 | $ 125,445 |
Less: Debt issuance costs | (2,171) | (2,290) |
Total debt, net of debt issuance costs | 121,385 | 123,155 |
Less: Current maturities of long-term debt | (35,506) | (33,403) |
Long-term debt, net of debt issuance costs and current maturities | 85,879 | 89,752 |
U.S. [Member] | ||
Total long-term debt | ||
Less: Debt issuance costs | (400) | (2,200) |
Senior Term Loan [Member] | U.S. [Member] | ||
Total long-term debt | ||
Total long-term debt | 71,250 | 75,000 |
Senior Revolving Loan [Member] | U.S. [Member] | ||
Total long-term debt | ||
Total long-term debt | 2,820 | 2,820 |
Accounts Receivable Financing [Member] | EMEA [Member] | ||
Total long-term debt | ||
Total long-term debt | 14,100 | 15,120 |
Unsecured Financing [Member] | EMEA [Member] | ||
Total long-term debt | ||
Total long-term debt | 4,638 | |
Equipment Financing [Member] | EMEA [Member] | ||
Total long-term debt | ||
Total long-term debt | 16,901 | 15,813 |
Equipment Capital Lease [Member] | U.S. [Member] | ||
Total long-term debt | ||
Total long-term debt | 536 | 2,016 |
Equipment Capital Lease [Member] | EMEA [Member] | ||
Total long-term debt | ||
Total long-term debt | 5,058 | 1,898 |
Equipment Capital Lease [Member] | Mexico [Member] | ||
Total long-term debt | ||
Total long-term debt | 12,844 | 8,037 |
Equipment Loan [Member] | Mexico [Member] | ||
Total long-term debt | ||
Total long-term debt | $ 47 | $ 103 |
Long-Term Debt, Net of Debt I79
Long-Term Debt, Net of Debt Issuance Costs and Current Maturities - Senior Financing Agreements (U.S) - Additional Information (Detail) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Apr. 30, 2017 | |
Debt Instrument [Line Items] | ||||
Debt issuance costs | $ 2,171,000 | $ 2,290,000 | $ 2,171,000 | |
Debt instrument, amount outstanding | $ 123,556,000 | $ 125,445,000 | 123,556,000 | |
U.S. [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, payment terms | The Restated Credit Facility requires us to make quarterly principal payments in the amount of $0.9 million of the outstanding principal loan balance commencing in March 2017, with the remaining outstanding balance to be repaid on or before December 30, 2020. | |||
Debt instrument, principal payment | $ 900,000 | |||
Debt instrument frequency of principal payment | quarterly | |||
Loan interest payment start date | 2017-03 | |||
Debt instrument, maturity date | Dec. 30, 2020 | |||
Percentage of equity of direct foreign subsidiaries pledged | 65.00% | |||
Prepayment of outstanding principal loan | 0 | |||
Debt instrument, prepayment penalty | $ 2,100,000 | |||
Amortization of debt issuance costs to interest expense, period | 36 months | 48 months | ||
Remaining deferred financing costs | $ 2,400,000 | |||
Debt issuance costs | $ 400,000 | 2,200,000 | 400,000 | |
U.S. [Member] | Senior Term Loan [Member] | ||||
Debt Instrument [Line Items] | ||||
Credit facility repaid | 74,400,000 | |||
Debt instrument, amount outstanding | 71,250,000 | 75,000,000 | 71,250,000 | |
U.S. [Member] | Senior Term Loan and Senior Revolving Loan [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, amount outstanding | $ 74,100,000 | 77,800,000 | $ 74,100,000 | |
U.S. [Member] | Term Loan [Member] | ||||
Debt Instrument [Line Items] | ||||
Credit facility, amount | 75,000,000 | |||
U.S. [Member] | Until December 30, 2017 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, payment terms | If the Company prepays any of the outstanding principal loan balance prior to December 30, 2017, the Company is required to pay the lenders a premium in an amount equal to the amount of interest that otherwise would have been payable from the date of prepayment until December 30, 2017 plus 3.0% of the amount of the principal loan balance that was prepaid. | |||
Debt instrument percentage of principal prepaid | 3.00% | 3.00% | ||
U.S. [Member] | After December 30, 2017 through December 30, 2018 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, payment terms | If the Company prepays any of the outstanding principal loan balance after December 30, 2017 through December 30, 2018, the Company is required to pay the lenders 2.0% of the principal loan balance that was prepaid. | |||
Debt instrument percentage of principal prepaid | 2.00% | 2.00% | ||
U.S. [Member] | After December 30, 2018 through December 30, 2019 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, payment terms | If the Company prepays any of the outstanding loan balance after December 30, 2018 through December 30, 2019, the Company is required to pay a premium of 1.5% of the amount of the principal loan balance that was prepaid. | |||
Debt instrument premium percentage of principal prepaid | 1.50% | 1.50% | ||
U.S. [Member] | Revolving Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Credit facility, amount | 25,000,000 | |||
U.S. [Member] | Letter of Credit [Member] | ||||
Debt Instrument [Line Items] | ||||
Credit facility, amount | $ 15,000,000 | $ 20,000,000 | ||
U.S. [Member] | LIBOR [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, floor rate | 1.00% | 1.00% | 1.00% | |
Debt instrument, variable interest rate | 5.25% | 5.75% | 6.94% |
Long-Term Debt, Net of Debt I80
Long-Term Debt, Net of Debt Issuance Costs and Current Maturities - Accounts Receivable, Secured and Unsecured Financing (EMEA) - Additional Information (Detail) - EMEA [Member] | 1 Months Ended | 11 Months Ended | 12 Months Ended | ||||
Mar. 31, 2016EUR (€)Customer | Dec. 31, 2014USD ($) | Nov. 30, 2014USD ($)Customer | Dec. 31, 2017USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2017EUR (€) | Dec. 31, 2016USD ($) | |
Financial Institution One [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Credit facility, description | The credit agreement does not have a maturity date, however the limits are reviewed in September of each year. | ||||||
Financial Institution One [Member] | Accounts Receivable Financing [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Credit facility, amount | $ 20,000,000 | $ 25,200,000 | € 21,000,000 | ||||
Collateralized credit agreement renewal based on the number of customers | Customer | 1 | ||||||
Credit facility, interest rate terms | Interest accrues annually at a variable rate of the annual Euro Interbank Offered Rate (EURIBOR) plus 5.75% (later updated to annual EURIBOR plus 5.95%) (5.95% as of December 31, 2017) and is paid quarterly. | ||||||
Debt instrument, interest rate | 5.95% | ||||||
Credit facility, frequency of periodic payment | quarterly | ||||||
Credit facility outstanding | $ 6,800,000 | $ 15,100,000 | |||||
Financial Institution One [Member] | Unsecured Financing [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Additional debt financing | $ 7,000,000 | 5,000,000 | |||||
Credit facility outstanding | $ 0 | 4,600,000 | |||||
Financial Institution One [Member] | EURIBOR [Member] | Accounts Receivable Financing [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, variable interest rate | 5.75% | 5.95% | |||||
Financial Institution Two [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Credit facility, amount | 16,000,000 | $ 16,000,000 | |||||
Credit facility, description | The credit agreement does not have a maturity date, however the limits are reviewed in September of each year. | ||||||
Credit facility outstanding | $ 0 | 0 | |||||
Financial Institution Two [Member] | Accounts Receivable Financing [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Credit facility, amount | 10,000,000 | 10,000,000 | |||||
Financial Institution Two [Member] | Unsecured Financing [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Credit facility, amount | 5,000,000 | 5,000,000 | |||||
Financial Institution Two [Member] | Letters of Guarantee [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Credit facility, amount | $ 1,000,000 | $ 1,000,000 | |||||
Financial Institution Two [Member] | Three month EURIBOR [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Credit facility, interest rate terms | Interest accrues at a variable rate of the three month EURIBOR plus 6.5% (6.5% as of December 31, 2017). | ||||||
Debt instrument, variable interest rate | 6.50% | ||||||
Debt instrument, interest rate | 6.50% | ||||||
Debt instrument installment period | 3 months | ||||||
Financial Institution Three [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Credit facility, amount | € 36,000,000 | $ 43,100,000 | |||||
Financial Institution Three [Member] | Accounts Receivable Financing [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Credit facility, amount | € 20,000,000 | 23,900,000 | |||||
Collateralized credit agreement renewal based on the number of customers | Customer | 1 | ||||||
Credit facility outstanding | 7,300,000 | 0 | |||||
Financial Institution Three [Member] | Letters of Guarantee [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Credit facility, amount | € 1,000,000 | $ 1,200,000 | |||||
Debt instrument, interest rate | 2.00% | ||||||
Debt instrument, maturity date | Mar. 31, 2017 | Feb. 28, 2018 | |||||
Financial Institution Three [Member] | Capital Expenditures Financing [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Credit facility, amount | € 12,500,000 | $ 18,000,000 | € 15,000,000 | ||||
Credit facility outstanding | $ 16,900,000 | $ 15,800,000 | |||||
Financial Institution Three [Member] | One month EURIBOR [Member] | Accounts Receivable Financing [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Credit facility, interest rate terms | Interest on the collateralized financing based on invoiced accounts receivable accrues at the one month EURIBOR plus 5.75% (5.75% as of December 31, 2017) and is paid quarterly with a maturity date equal to four months from the applicable invoice date. | ||||||
Debt instrument, variable interest rate | 5.75% | ||||||
Debt instrument, interest rate | 5.75% | ||||||
Credit facility, frequency of periodic payment | quarterly | ||||||
Debt instrument installment period | 4 months | ||||||
Financial Institution Three [Member] | One month EURIBOR [Member] | Capital Expenditures Financing [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Credit facility, interest rate terms | Interest on the collateralized capital expenditures financing accrues at the one month EURIBOR plus 6.75% (6.75% as of December 31, 2017) with monthly principal repayments beginning in October 2017 with a final maturity date of December 2021. | ||||||
Debt instrument, variable interest rate | 6.75% | ||||||
Debt instrument, interest rate | 6.75% | ||||||
Credit facility, frequency of periodic payment | monthly | ||||||
Debt instrument payment, start date | 2017-10 | ||||||
Debt instrument payment, end date | 2021-12 |
Long-Term Debt, Net of Debt I81
Long-Term Debt, Net of Debt Issuance Costs and Current Maturities - Accounts Receivable, Secured and Unsecured Financing (Asia) - Additional Information (Detail) | 1 Months Ended | 12 Months Ended | |||
Feb. 28, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016USD ($) | Jan. 31, 2016CNY (¥) | |
Debt Instrument [Line Items] | |||||
Debt instrument, amount outstanding | $ 123,556,000 | $ 125,445,000 | |||
Asia [Member] | Financial Institution One [Member] | |||||
Debt Instrument [Line Items] | |||||
Credit facility, amount | 13,600,000 | ¥ 95,000,000 | |||
Debt instrument, maturity date | Jan. 12, 2017 | ||||
Asia [Member] | Financial Institution One [Member] | Accounts Receivable Financing [Member] | |||||
Debt Instrument [Line Items] | |||||
Credit facility, amount | 12,200,000 | 85,000,000 | |||
Debt instrument, amount outstanding | 0 | ||||
Asia [Member] | Financial Institution One [Member] | Working Capital Loans [Member] | |||||
Debt Instrument [Line Items] | |||||
Credit facility, amount | 1,400,000 | ¥ 10,000,000 | |||
Debt instrument, amount outstanding | $ 0 | ||||
Asia [Member] | Financial Institution Two [Member] | |||||
Debt Instrument [Line Items] | |||||
Credit facility, amount | ¥ 150,000,000 | $ 23,000,000 | |||
Debt instrument, maturity date | Feb. 28, 2018 | ||||
Credit facility, interest rate terms | Interest on the credit line accrues at the LIBOR rate plus an applicable margin and can be paid monthly, quarterly or at the time of the debt’s maturity (in February 2018). | ||||
Asia [Member] | Financial Institution Two [Member] | Letters of Guarantee [Member] | |||||
Debt Instrument [Line Items] | |||||
Letters of guarantee used for customs clearance outstanding | $ 19,500,000 | ¥ 127,000,000 |
Long-Term Debt, Net of Debt I82
Long-Term Debt, Net of Debt Issuance Costs and Current Maturities - Equipment Leases and Other Arrangements (U.S.) - Additional Information (Detail) - USD ($) | 1 Months Ended | ||
Mar. 31, 2014 | Dec. 31, 2017 | Dec. 31, 2016 | |
Debt Instrument [Line Items] | |||
Debt instrument, amount outstanding | $ 123,556,000 | $ 125,445,000 | |
Machinery and Equipment [Member] | U.S. [Member] | |||
Debt Instrument [Line Items] | |||
Effective interest rate of lease agreement | 4.30% | ||
Lease agreement period | 24 months | ||
Lease agreement amended value | $ 5,400,000 | ||
Machinery and Equipment [Member] | U.S. [Member] | Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Initial amount of lease agreement | $ 2,200,000 | ||
Equipment Capital Lease [Member] | U.S. [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, amount outstanding | $ 536,000 | $ 2,016,000 |
Long-Term Debt, Net of Debt I83
Long-Term Debt, Net of Debt Issuance Costs and Current Maturities - Equipment Leases and Other Arrangements (EMEA) - Additional Information (Detail) - USD ($) | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2010 | Dec. 31, 2016 | Dec. 31, 2013 | |
Debt Instrument [Line Items] | ||||
Debt instrument, amount outstanding | $ 123,556,000 | $ 125,445,000 | ||
EMEA [Member] | ||||
Debt Instrument [Line Items] | ||||
Initial amount of lease agreement | $ 10,000,000 | |||
Effective interest rate of lease agreement | 6.00% | |||
Lease agreement period | 4 years | |||
Debt instrument frequency of principal payment | monthly | |||
Debt instrument repaid installment through | 2,022 | |||
EMEA [Member] | Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Initial amount of lease agreement | $ 4,900,000 | |||
Equipment Capital Lease [Member] | EMEA [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, amount outstanding | $ 5,058,000 | $ 1,898,000 |
Long-Term Debt, Net of Debt I84
Long-Term Debt, Net of Debt Issuance Costs and Current Maturities- Equipment Leases and Other Arrangements (Mexico) - Additional Information (Detail) - USD ($) | 1 Months Ended | 12 Months Ended | |||
Mar. 31, 2017 | Jan. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Debt Instrument [Line Items] | |||||
Debt instrument, amount outstanding | $ 123,556,000 | $ 125,445,000 | |||
Mexico [Member] | |||||
Debt Instrument [Line Items] | |||||
Average interest rate on short-term borrowings | 5.90% | 5.80% | |||
Mexico [Member] | Interest Expense [Member] | |||||
Debt Instrument [Line Items] | |||||
Amortization of debt issuance costs | $ 600,000 | $ 1,700,000 | $ 1,300,000 | ||
Mexico [Member] | Lease Agreement, January 2016 [Member] | |||||
Debt Instrument [Line Items] | |||||
Lease agreement amended value | $ 10,000,000 | ||||
Effective interest rate of lease agreement | 4.30% | ||||
Lease agreement period | 24 months | ||||
Debt instrument, amount outstanding | 5,000,000 | $ 8,000,000 | |||
Mexico [Member] | Lease Agreement, January 2016 [Member] | Maximum [Member] | |||||
Debt Instrument [Line Items] | |||||
Initial amount of lease agreement | $ 9,500,000 | ||||
Mexico [Member] | Sale-lease Agreement, March 2017 [Member] | |||||
Debt Instrument [Line Items] | |||||
Effective interest rate of lease agreement | 4.30% | ||||
Lease agreement period | 24 months | ||||
Debt instrument, amount outstanding | $ 7,400,000 | ||||
Mexico [Member] | Sale-lease Agreement, March 2017 [Member] | Maximum [Member] | |||||
Debt Instrument [Line Items] | |||||
Initial amount of lease agreement | $ 12,000,000 |
Long-Term Debt, Net of Debt I85
Long-Term Debt, Net of Debt Issuance Costs and Current Maturities - Schedule of Future Aggregate Annual Principal Maturities of Debt (Detail) $ in Thousands | Dec. 31, 2017USD ($) |
Long Term Debt By Maturity [Abstract] | |
2,018 | $ 35,506 |
2,019 | 13,146 |
2,020 | 69,094 |
2,021 | 4,723 |
2,022 | 1,087 |
Total debt - principal | $ 123,556 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) | 1 Months Ended | 12 Months Ended | |||||
May 31, 2017 | May 31, 2016Employee | Apr. 30, 2016USD ($)shares | Dec. 31, 2017USD ($)$ / sharesshares | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 29, 2014USD ($) | |
Commitments and Contingencies [Line Items] | |||||||
Operating leases rental expense | $ 19,300,000 | $ 11,500,000 | $ 8,400,000 | ||||
China [Member] | |||||||
Commitments and Contingencies [Line Items] | |||||||
Maximum percentage of registered capital contributed to surplus reserve | 50.00% | ||||||
Maximum amount of registered capital contributed to surplus reserve | $ 11,600,000 | ||||||
Percentage of dividends payment after tax profits | 90.00% | ||||||
Percentage of dividend contributed to surplus reserve | 10.00% | ||||||
Percentage of dividends payment after tax profits upon fulfillment of requirement | 100.00% | ||||||
Surplus reserve fund | $ 5,600,000 | ||||||
Turkey [Member] | |||||||
Commitments and Contingencies [Line Items] | |||||||
Collective bargaining agreement period | 3 years | ||||||
Percentage of average increase in payment | 20.00% | ||||||
Number of other employees covered by collective bargaining agreements | Employee | 0 | ||||||
SVP–Asia [Member] | Transition Agreement [Member] | |||||||
Commitments and Contingencies [Line Items] | |||||||
Compensation and fees demanded by plaintiff | $ 2,600,000 | ||||||
Termination of options to purchase common stock | shares | 164,880 | ||||||
Termination of options to purchase restricted stock | shares | 77,760 | ||||||
Percentage of compensation awarded on demanded amount by arbitration committee | 50.00% | ||||||
Common Stock Warrants [Member] | |||||||
Commitments and Contingencies [Line Items] | |||||||
Value of subordinated convertible promissory notes | $ 10,000,000 | ||||||
Warrants issued to purchase common stock | shares | 160,424 | ||||||
Warrants exercise price | $ / shares | $ 9.35 | ||||||
Warrants issued to purchase common stock price per share percentage | 85.00% | ||||||
Warrants expiration period | 8 years | ||||||
Common Stock Warrants [Member] | Initial Public Offering [Member] | |||||||
Commitments and Contingencies [Line Items] | |||||||
Price per share | $ / shares | $ 11 | ||||||
Minimum [Member] | |||||||
Commitments and Contingencies [Line Items] | |||||||
Operating leases, contract terms | 12 months | ||||||
Minimum [Member] | Common Stock Warrants [Member] | |||||||
Commitments and Contingencies [Line Items] | |||||||
Warrants exercise price | $ / shares | $ 24.30 | ||||||
Maximum [Member] | |||||||
Commitments and Contingencies [Line Items] | |||||||
Operating leases, contract terms | 120 months |
Commitments and Contingencies87
Commitments and Contingencies - Schedule of Future Minimum Lease Payments under Noncancelable Operating Leases (Detail) $ in Thousands | Dec. 31, 2017USD ($) |
Leases [Abstract] | |
2,018 | $ 20,608 |
2,019 | 19,050 |
2,020 | 17,356 |
2,021 | 14,090 |
2,022 | 11,803 |
Thereafter | 43,725 |
Total future minimum lease payments | $ 126,632 |
Defined Contribution Plan - Add
Defined Contribution Plan - Additional Information (Detail) - USD ($) $ in Millions | Jan. 01, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Mexico [Member] | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Mexican maximum statutory employee contribution percentage | 13.00% | |||
Matched savings expense incurred | $ 1.3 | $ 0.6 | $ 0.5 | |
Turkey [Member] | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Accrued retirement fund | $ 1.5 | 1 | ||
Employee eligibility, minimum requisite service period | 1 year | |||
401(k) Plan [Member] | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Percentage of participant's contributions matched by Company | 50.00% | 25.00% | ||
Percentage of eligible compensation | 8.00% | 8.00% | ||
Vesting period to match participants contribution | 3 years | 6 years | ||
401(k) Plan [Member] | U.S. [Member] | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Percentage of participant's contributions matched by Company | 50.00% | |||
Company's matching contributions to plan | $ 0.6 | $ 0.3 | $ 0.2 | |
401(k) Plan [Member] | U.S. [Member] | Maximum [Member] | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Percentage of eligible compensation | 8.00% |
Defined Contribution Plan - Sum
Defined Contribution Plan - Summary of Company Matching Contribution Vesting Percentage (Detail) - 401(k) Plan [Member] - U.S. [Member] | 12 Months Ended |
Dec. 31, 2017 | |
1-Year Anniversary [Member] | |
Defined Contribution Plan Disclosure [Line Items] | |
Vesting Percentage | 34.00% |
2-Year Anniversary [Member] | |
Defined Contribution Plan Disclosure [Line Items] | |
Vesting Percentage | 66.00% |
3-Year Anniversary [Member] | |
Defined Contribution Plan Disclosure [Line Items] | |
Vesting Percentage | 100.00% |
Income Taxes - Components of In
Income Taxes - Components of Income Before Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Line Items] | |||
Total income before income taxes | $ 56,770 | $ 20,837 | $ 11,659 |
United States [Member] | |||
Income Tax Disclosure [Line Items] | |||
Total income before income taxes | 2,894 | 5,406 | (3,165) |
China [Member] | |||
Income Tax Disclosure [Line Items] | |||
Total income before income taxes | 41,075 | 22,826 | 18,420 |
Turkey [Member] | |||
Income Tax Disclosure [Line Items] | |||
Total income before income taxes | 9,160 | (8,564) | (4,552) |
Mexico [Member] | |||
Income Tax Disclosure [Line Items] | |||
Total income before income taxes | $ 3,641 | $ 1,169 | $ 956 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2008 | |
Income Tax Disclosure [Line Items] | |||||
Previously untaxed foreign earnings recognized | $ 74,300,000 | ||||
Additional indirect foreign tax credits | 7,400,000 | ||||
Total provisional benefit recognized | $ 100,000 | ||||
Income tax rate | 35.00% | 34.00% | 34.00% | ||
Ownership change, description | An “ownership change” is generally defined as any change in ownership of more than 50% of a corporation’s stock over a rolling three-year period by stockholders that own (directly or indirectly) 5% or more of the stock of a corporation, or arising from a new issuance of stock by a corporation. | ||||
Uncertain tax positions of accrued interest and penalties related to unrecognized tax benefits | $ 0 | ||||
Income tax examinations, description | The Company operates in and files income tax returns in various jurisdictions in China, Mexico, Turkey and the U.S., which are subject to examination by tax authorities. During the year, the Company settled tax audits conducted by the China tax authorities for the years 2014 through 2016, and by the Turkish tax authorities for the years 2012 through 2014. The amount of the settlement of these audits was immaterial to the current year income tax provision. | ||||
U.S. Federal [Member] | |||||
Income Tax Disclosure [Line Items] | |||||
Net operating loss carryforward | $ 51,200,000 | ||||
Net operating loss carryforwards expiration year | 2,037 | ||||
State [Member] | |||||
Income Tax Disclosure [Line Items] | |||||
Net operating loss carryforward | $ 92,600,000 | ||||
Net operating loss carryforwards expiration year | 2,037 | ||||
Foreign [Member] | |||||
Income Tax Disclosure [Line Items] | |||||
Tax credit carryforwards | $ 1,700,000 | ||||
Tax credits carryforward expiration year | 2,026 | ||||
Foreign [Member] | China Tax Authorities [Member] | Minimum [Member] | |||||
Income Tax Disclosure [Line Items] | |||||
Tax year audited by tax authorities | 2,014 | ||||
Foreign [Member] | China Tax Authorities [Member] | Maximum [Member] | |||||
Income Tax Disclosure [Line Items] | |||||
Tax year audited by tax authorities | 2,016 | ||||
Foreign [Member] | Turkish Tax Authorities [Member] | Minimum [Member] | |||||
Income Tax Disclosure [Line Items] | |||||
Tax year audited by tax authorities | 2,012 | ||||
Foreign [Member] | Turkish Tax Authorities [Member] | Maximum [Member] | |||||
Income Tax Disclosure [Line Items] | |||||
Tax year audited by tax authorities | 2,014 | ||||
Turkey [Member] | |||||
Income Tax Disclosure [Line Items] | |||||
Recognition of non-cash tax benefit from foreign operations | $ 2,600,000 | ||||
Benefit from receipt of new tax incentive from Turkish government that will be used to reduce future cash taxes | 2,700,000 | ||||
Tax incentives carryforward amount not subject to expiration | $ 2,800,000 | ||||
Scenario, Forecast [Member] | |||||
Income Tax Disclosure [Line Items] | |||||
Income tax rate | 21.00% | ||||
Pre-ownership Change [Member] | |||||
Income Tax Disclosure [Line Items] | |||||
Net operating loss carryforward | $ 25,600,000 | ||||
Net operating loss carryforward subject to annual limitation on use | $ 4,300,000 |
Income Taxes - Components of 92
Income Taxes - Components of Income Tax Provision (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Current: | |||
U.S. federal | $ (49) | $ (51) | |
U.S. state and local taxes | (3) | $ (196) | 55 |
Foreign | 14,200 | 9,973 | 4,738 |
Total current | 14,148 | 9,777 | 4,742 |
Deferred: | |||
U.S. federal | (20) | 51 | |
Foreign | (1,048) | (2,833) | (765) |
Total deferred | (1,068) | (2,782) | (765) |
Total income tax provision | $ 13,080 | $ 6,995 | $ 3,977 |
Income Taxes - Reconciliation f
Income Taxes - Reconciliation from U.S. Statutory Income Tax Rate to Company's Effective Income Tax Rate (Detail) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
United States statutory income tax rate | 35.00% | 34.00% | 34.00% |
Foreign rate differential | (11.10%) | 5.30% | (23.90%) |
Foreign permanent differences | 1.20% | 2.40% | 4.10% |
China rate change | (4.80%) | ||
U.S. rate change | 19.90% | ||
Withholding taxes | 5.00% | 6.80% | 3.40% |
Foreign tax credits | (5.00%) | (7.90%) | (0.00%) |
IRC Section 965 dividend | 20.30% | ||
Foreign tax credits - 965 dividend | (13.10%) | ||
Nondeductible interest expense | 11.50% | ||
Valuation allowance | (28.00%) | (14.30%) | 17.30% |
State taxes | (0.60%) | 0.50% | |
Deferred tax adjustments | 3.70% | (0.10%) | 2.30% |
Research and development | (1.20%) | (3.00%) | (3.00%) |
U.S. foreign income inclusions | 2.00% | ||
Turkey incentive credits | (5.30%) | (2.20%) | (0.40%) |
Other | 1.60% | 4.50% | (0.20%) |
Effective income tax rate | 23.00% | 33.60% | 34.10% |
Income Taxes - Summary of Compo
Income Taxes - Summary of Components of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred tax assets: | ||||
Net operating loss and credit carry forwards | $ 18,913 | $ 25,354 | $ 32,294 | |
Deferred revenue | 2,616 | 5,373 | 6,563 | |
Non-deductible accruals | 9,557 | 8,316 | 4,825 | |
Equity compensation | 3,489 | 3,503 | ||
Equity investment | 390 | 633 | 653 | |
Amortization of intangible assets | 320 | 472 | 720 | |
Tax credits | 4,582 | 2,914 | 384 | |
Other | 3,424 | 1,248 | 1,671 | |
Total deferred tax assets | 43,291 | 47,813 | 47,110 | |
Valuation allowance | (29,141) | (40,596) | (41,216) | $ (39,347) |
Net deferred tax assets | 14,150 | 7,217 | 5,894 | |
Deferred tax liabilities: | ||||
Deferred revenue | (1,497) | (615) | ||
Depreciation | (3,489) | (1,714) | (1,831) | |
Other | (1,972) | (423) | (1,787) | |
Total deferred tax liabilities | (6,958) | (2,137) | (4,233) | |
Net deferred tax assets | $ 7,192 | $ 5,080 | $ 1,661 |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Valuation Allowance (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Allowance at beginning of year | $ (40,596) | $ (41,216) | $ (39,347) |
Benefits obtained (expenses incurred) | 11,455 | 620 | (1,869) |
Allowance at end of year | $ (29,141) | $ (40,596) | $ (41,216) |
Concentration of Customers - Ad
Concentration of Customers - Additional Information (Detail) - Customer Concentration Risk [Member] | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Sales Revenues [Member] | |||
Concentration Risk [Line Items] | |||
Customer risk percentage | 100.00% | 100.00% | 100.00% |
Sales Revenues [Member] | Minimum [Member] | |||
Concentration Risk [Line Items] | |||
Customer risk percentage | 10.00% | ||
Accounts Receivable [Member] | Minimum [Member] | |||
Concentration Risk [Line Items] | |||
Customer risk percentage | 10.00% |
Concentration of Customers - Sc
Concentration of Customers - Schedule of Revenues from Customers (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Concentration Risk [Line Items] | |||||||||||
Revenues | $ 247,139 | $ 243,354 | $ 248,186 | $ 191,602 | $ 185,574 | $ 198,938 | $ 194,255 | $ 176,110 | $ 930,281 | $ 754,877 | $ 585,852 |
Sales Revenues [Member] | Customer Concentration Risk [Member] | |||||||||||
Concentration Risk [Line Items] | |||||||||||
Revenues | $ 930,281 | $ 754,877 | $ 585,852 | ||||||||
Percentage of Total | 100.00% | 100.00% | 100.00% | ||||||||
Sales Revenues [Member] | Customer 1 - GE [Member] | Customer Concentration Risk [Member] | |||||||||||
Concentration Risk [Line Items] | |||||||||||
Revenues | $ 413,245 | $ 379,941 | $ 312,495 | ||||||||
Percentage of Total | 44.40% | 50.30% | 53.30% | ||||||||
Sales Revenues [Member] | Customer 2 - Vestas [Member] | Customer Concentration Risk [Member] | |||||||||||
Concentration Risk [Line Items] | |||||||||||
Revenues | $ 264,774 | $ 152,106 | $ 50,031 | ||||||||
Percentage of Total | 28.50% | 20.10% | 8.50% | ||||||||
Sales Revenues [Member] | Customer 3 - Nordex Acciona [Member] | Customer Concentration Risk [Member] | |||||||||||
Concentration Risk [Line Items] | |||||||||||
Revenues | $ 153,962 | $ 131,775 | $ 154,927 | ||||||||
Percentage of Total | 16.60% | 17.50% | 26.50% | ||||||||
Sales Revenues [Member] | Customer 4 - Siemens Gamesa [Member] | Customer Concentration Risk [Member] | |||||||||||
Concentration Risk [Line Items] | |||||||||||
Revenues | $ 83,895 | $ 81,463 | $ 60,544 | ||||||||
Percentage of Total | 9.00% | 10.80% | 10.30% | ||||||||
Sales Revenues [Member] | Other [Member] | Customer Concentration Risk [Member] | |||||||||||
Concentration Risk [Line Items] | |||||||||||
Revenues | $ 14,405 | $ 9,592 | $ 7,855 | ||||||||
Percentage of Total | 1.50% | 1.30% | 1.40% |
Concentration of Customers - 98
Concentration of Customers - Schedule of Trade Accounts Receivable from Certain Customers (Detail) - Accounts Receivable [Member] - Customer Concentration Risk [Member] | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Customer 1 - GE [Member] | ||
Concentration Risk [Line Items] | ||
Percentage of Total | 18.90% | 24.90% |
Customer 2 - Vestas [Member] | ||
Concentration Risk [Line Items] | ||
Percentage of Total | 52.40% | 26.20% |
Customer 3 - Nordex Acciona [Member] | ||
Concentration Risk [Line Items] | ||
Percentage of Total | 19.50% | 26.80% |
Customer 4 - Siemens Gamesa [Member] | ||
Concentration Risk [Line Items] | ||
Percentage of Total | 4.90% | 16.20% |
Segment Reporting - Additional
Segment Reporting - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2017Segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 4 |
Segment Reporting - Schedule of
Segment Reporting - Schedule of Segment Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | |||||||||||
Total net sales | $ 247,139 | $ 243,354 | $ 248,186 | $ 191,602 | $ 185,574 | $ 198,938 | $ 194,255 | $ 176,110 | $ 930,281 | $ 754,877 | $ 585,852 |
Total depreciation and amortization | 20,878 | 12,897 | 11,416 | ||||||||
Total capital expenditures | 44,828 | 30,507 | 26,361 | ||||||||
Total income from operations | 15,277 | $ 23,546 | $ 23,799 | $ 9,714 | 9,309 | $ 8,137 | $ 17,478 | $ 8,189 | 72,336 | 43,113 | 27,619 |
Total tangible long-lived assets | 123,480 | 91,166 | 123,480 | 91,166 | |||||||
Total assets | 573,534 | 437,206 | 573,534 | 437,206 | |||||||
U.S. [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total net sales | 181,889 | 190,092 | 149,614 | ||||||||
China [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total net sales | 361,696 | 301,893 | 206,779 | ||||||||
Mexico [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total net sales | 195,960 | 129,756 | 97,912 | ||||||||
Turkey [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total net sales | 190,736 | 133,136 | 131,547 | ||||||||
U.S. Segment [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total net sales | 181,889 | 190,092 | 149,614 | ||||||||
Total depreciation and amortization | 4,821 | 3,336 | 3,477 | ||||||||
Total capital expenditures | 10,575 | 4,056 | 5,379 | ||||||||
Total income from operations | (39,571) | (25,099) | (13,405) | ||||||||
Total tangible long-lived assets | 24,575 | 16,740 | 24,575 | 16,740 | |||||||
Total assets | 141,846 | 115,213 | 141,846 | 115,213 | |||||||
Asia Segment [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total net sales | 361,696 | 301,893 | 206,779 | ||||||||
Total depreciation and amortization | 6,083 | 4,534 | 4,181 | ||||||||
Total capital expenditures | 7,000 | 3,287 | 15,632 | ||||||||
Total income from operations | 77,106 | 64,393 | 34,998 | ||||||||
Total tangible long-lived assets | 28,887 | 26,341 | 28,887 | 26,341 | |||||||
Total assets | 225,537 | 172,315 | 225,537 | 172,315 | |||||||
EMEA Segment [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total net sales | 190,736 | 133,136 | 131,547 | ||||||||
Total depreciation and amortization | 4,609 | 2,699 | 2,225 | ||||||||
Total capital expenditures | 7,220 | 17,599 | 2,453 | ||||||||
Total income from operations | 21,671 | (5,727) | (1,505) | ||||||||
Total tangible long-lived assets | 30,262 | 23,243 | 30,262 | 23,243 | |||||||
Total assets | 117,237 | 81,447 | 117,237 | 81,447 | |||||||
Mexico Segment [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total net sales | 195,960 | 129,756 | 97,912 | ||||||||
Total depreciation and amortization | 5,365 | 2,328 | 1,533 | ||||||||
Total capital expenditures | 20,033 | 5,565 | 2,897 | ||||||||
Total income from operations | 13,130 | 9,546 | $ 7,531 | ||||||||
Total tangible long-lived assets | 39,756 | 24,842 | 39,756 | 24,842 | |||||||
Total assets | $ 88,914 | $ 68,231 | $ 88,914 | $ 68,231 |
Selected Quarterly Financial101
Selected Quarterly Financial Data (Unaudited) - Schedule of Selected Quarterly Financial Data (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net sales (Note 3) | $ 247,139 | $ 243,354 | $ 248,186 | $ 191,602 | $ 185,574 | $ 198,938 | $ 194,255 | $ 176,110 | $ 930,281 | $ 754,877 | $ 585,852 |
Income from operations | 15,277 | 23,546 | 23,799 | 9,714 | 9,309 | 8,137 | 17,478 | 8,189 | 72,336 | 43,113 | 27,619 |
Net income (loss) | 5,889 | 20,398 | 13,858 | 3,545 | (2,256) | 2,797 | 11,555 | 1,746 | 43,690 | 13,842 | 7,682 |
Net income (loss) attributable to common stockholders | $ 5,889 | $ 20,398 | $ 13,858 | $ 3,545 | $ (2,256) | $ 2,201 | $ 9,117 | $ (691) | $ 43,690 | $ 8,371 | $ (1,741) |
Net income (loss) per common share: | |||||||||||
Basic | $ 0.17 | $ 0.60 | $ 0.41 | $ 0.11 | $ (0.07) | $ 0.08 | $ 2.15 | $ (0.16) | |||
Diluted | $ 0.17 | $ 0.58 | $ 0.41 | $ 0.10 | $ (0.07) | $ 0.08 | $ 2.15 | $ (0.16) |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - Asia [Member] - Financial Institution Three [Member] - CNY (¥) | 1 Months Ended | 12 Months Ended |
Jan. 31, 2018 | Dec. 31, 2017 | |
Subsequent Event [Line Items] | ||
Credit facility, interest rate terms | Interest on the credit line accrues at the LIBOR rate plus an applicable margin and can be paid monthly, quarterly or at the time of the debt’s maturity (in January 2019). | |
Subsequent Event [Member] | ||
Subsequent Event [Line Items] | ||
Credit facility, amount | ¥ 150,000,000 | |
Debt instrument, maturity date | Jan. 31, 2019 | |
Subsequent Event [Member] | Working Capital Loans [Member] | ||
Subsequent Event [Line Items] | ||
Credit facility, amount | ¥ 40,000,000 |