Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Feb. 19, 2016 | Jun. 30, 2015 | |
Entity Registrant Name | GENERAC HOLDINGS INC. | ||
Entity Central Index Key | 1,474,735 | ||
Trading Symbol | gnrc | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Common Stock, Shares Outstanding (in shares) | 66,366,949 | ||
Entity Public Float | $ 2,707,473,704 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 115,857,000 | $ 189,761,000 |
Accounts receivable, less allowance for doubtful accounts of $2,494 at December 31, 2015 and $2,275 at December 31, 2014 | 182,185,000 | 189,107,000 |
Inventories | 325,375,000 | 319,385,000 |
Deferred income taxes | 29,355,000 | 22,841,000 |
Prepaid expenses and other assets | 8,600,000 | 9,384,000 |
Total current assets | 661,372,000 | 730,478,000 |
Property and equipment, net | 184,213,000 | 168,821,000 |
Customer lists, net | 39,313,000 | 41,002,000 |
Patents, net | 53,772,000 | 56,894,000 |
Other intangible assets, net | 2,768,000 | 4,298,000 |
Tradenames, net | 161,057,000 | 182,684,000 |
Goodwill | 669,719,000 | 635,565,000 |
Deferred financing costs, net | 12,965,000 | 16,243,000 |
Deferred income taxes | 6,673,000 | 46,509,000 |
Other assets | 964,000 | 48,000 |
Total assets | 1,792,816,000 | 1,882,542,000 |
Current liabilities: | ||
Short-term borrowings | 8,594,000 | 5,359,000 |
Accounts payable | 108,332,000 | 132,248,000 |
Accrued wages and employee benefits | 13,101,000 | 17,544,000 |
Other accrued liabilities | 82,540,000 | 84,814,000 |
Current portion of long-term borrowings and capital lease obligations | 657,000 | 557,000 |
Total current liabilities | 213,224,000 | 240,522,000 |
Long-term borrowings and capital lease obligations | 1,050,097,000 | 1,082,101,000 |
Deferred income taxes | 6,166,000 | 13,449,000 |
Other long-term liabilities | 57,458,000 | 56,671,000 |
Total liabilities | 1,326,945,000 | 1,392,743,000 |
Stockholders’ equity: | ||
Common stock, par value $0.01, 500,000,000 shares authorized, 69,582,669 and 69,122,271 shares issued at December 31, 2015 and 2014, respectively | 696,000 | 691,000 |
Additional paid-in capital | 443,109,000 | 434,906,000 |
Treasury stock, at cost, 3,567,575 and 198,312 shares at December 31, 2015 and 2014, respectively | (111,516,000) | (8,341,000) |
Excess purchase price over predecessor basis | (202,116,000) | (202,116,000) |
Retained earnings | 358,173,000 | 280,426,000 |
Accumulated other comprehensive loss | (22,475,000) | (15,767,000) |
Total stockholders’ equity | 465,871,000 | 489,799,000 |
Total liabilities and stockholders’ equity | $ 1,792,816,000 | $ 1,882,542,000 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Accounts receivable, allowance for doubtful accounts | $ 2,494 | $ 2,275 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock, shares issued (in shares) | 69,582,669 | 69,122,271 |
Treasury stock, shares (in shares) | 3,567,575 | 198,312 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | Interest Rate Swap [Member] | |||
Other comprehensive income (loss): | |||
Amortization of unrealized loss on interest rate swaps | $ 2,381 | ||
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | |||
Other comprehensive income (loss): | |||
Amortization of unrealized loss on interest rate swaps | $ (965) | $ (1,420) | 774 |
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | |||
Other comprehensive income (loss): | |||
Amortization of unrealized loss on interest rate swaps | (7,624) | (3,082) | 1,238 |
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | |||
Other comprehensive income (loss): | |||
Amortization of unrealized loss on interest rate swaps | 1,881 | (8,850) | 7,688 |
Net sales | 1,317,299 | 1,460,919 | 1,485,765 |
Costs of goods sold | 857,349 | 944,700 | 916,205 |
Gross profit | 459,950 | 516,219 | 569,560 |
Selling and service | 130,242 | 120,408 | 107,515 |
Research and development | 32,922 | 31,494 | 29,271 |
General and administrative | 52,947 | 54,795 | 55,490 |
Amortization of intangibles | 23,591 | $ 21,024 | $ 25,819 |
Tradename and goodwill impairment | $ 40,687 | ||
Gain on remeasurement of contingent consideration | $ (4,877) | ||
Total operating expenses | $ 280,389 | 222,844 | $ 218,095 |
Income from operations | 179,561 | 293,375 | 351,465 |
Interest expense | (42,843) | (47,215) | (54,435) |
Investment income | 123 | 130 | 91 |
Loss on extinguishment of debt | (4,795) | (2,084) | $ (15,336) |
Gain (loss) on change in contractual interest rate | (2,381) | 16,014 | |
Costs related to acquisitions | (1,195) | (396) | $ (1,086) |
Other, net | (5,487) | (1,462) | (1,983) |
Total other expense, net | (56,578) | (35,013) | (72,749) |
Income before provision for income taxes | 122,983 | 258,362 | 278,716 |
Provision for income taxes | 45,236 | 83,749 | 104,177 |
Net income | $ 77,747 | $ 174,613 | $ 174,539 |
Net income per common share - basic: (in dollars per share) | $ 1.14 | $ 2.55 | $ 2.56 |
Weighted average common shares outstanding - basic: (in shares) | 68,096,051 | 68,538,248 | 68,081,632 |
Net income per common share - diluted: (in dollars per share) | $ 1.12 | $ 2.49 | $ 2.51 |
Weighted average common shares outstanding - diluted: (in shares) | 69,200,297 | 70,171,044 | 69,667,529 |
Dividends declared per share (in dollars per share) | $ 5 | ||
Amortization of unrealized loss on interest rate swaps | $ (6,708) | $ (13,352) | $ 12,081 |
Comprehensive income | $ 71,039 | $ 161,261 | $ 186,620 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Treasury Stock [Member] | Excess Purchase Price over Predecessor Basis [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Total |
Balance | $ 683 | $ 743,349 | $ (202,116) | $ (63,792) | $ (14,496) | $ 463,628 | |
Balance (in shares) at Dec. 31, 2012 | 68,295,960 | ||||||
Balance at Dec. 31, 2012 | $ 683 | $ 743,349 | $ (202,116) | $ (63,792) | (14,496) | 463,628 | |
Unrealized gain (loss) on interest rate swaps, net of tax | 774 | 774 | |||||
Amortization of unrealized loss on interest rate swaps, net of tax | 2,381 | 2,381 | |||||
Foreign currency translation adjustment | $ 1,238 | 1,238 | |||||
Common stock issued under equity incentive plans, net of shares withheld for employee taxes and strike price (in shares) | 471,407 | ||||||
Common stock issued under equity incentive plans, net of shares withheld for employee taxes and strike price | $ 5 | $ (8,587) | (8,582) | ||||
Net share settlement of restricted stock awards (in shares) | (163,458) | ||||||
Net share settlement of restricted stock awards | $ (6,571) | (6,571) | |||||
Excess tax benefits from equity awards | $ 11,553 | 11,553 | |||||
Share-based compensation | 12,368 | 12,368 | |||||
Dividends declared | (337,011) | $ (4,934) | (341,945) | ||||
Pension liability adjustment, net of tax | $ 7,688 | 7,688 | |||||
Net income | 174,539 | 174,539 | |||||
Balance (in shares) at Dec. 31, 2013 | 68,767,367 | (163,458) | |||||
Balance | $ 683 | 743,349 | $ (6,571) | $ (202,116) | (63,792) | (14,496) | 463,628 |
Balance at Dec. 31, 2013 | 688 | 421,672 | (6,571) | (202,116) | 105,813 | (2,415) | 317,071 |
Balance | $ 688 | 421,672 | $ (6,571) | $ (202,116) | $ 105,813 | (2,415) | 317,071 |
Unrealized gain (loss) on interest rate swaps, net of tax | (1,420) | (1,420) | |||||
Foreign currency translation adjustment | $ (3,082) | (3,082) | |||||
Common stock issued under equity incentive plans, net of shares withheld for employee taxes and strike price (in shares) | 354,904 | ||||||
Common stock issued under equity incentive plans, net of shares withheld for employee taxes and strike price | $ 3 | $ (10,378) | (10,375) | ||||
Net share settlement of restricted stock awards (in shares) | (34,854) | ||||||
Net share settlement of restricted stock awards | $ (1,770) | (1,770) | |||||
Excess tax benefits from equity awards | $ 10,972 | 10,972 | |||||
Share-based compensation | 12,612 | 12,612 | |||||
Pension liability adjustment, net of tax | $ (8,850) | (8,850) | |||||
Net income | $ 174,613 | 174,613 | |||||
Balance (in shares) at Dec. 31, 2014 | 69,122,271 | (198,312) | |||||
Balance | $ 688 | 421,672 | $ (6,571) | $ (202,116) | $ 105,813 | $ (2,415) | 489,799 |
Dividends paid | 28 | 28 | |||||
Balance at Dec. 31, 2014 | $ 691 | 434,906 | $ (8,341) | $ (202,116) | $ 280,426 | $ (15,767) | 489,799 |
Balance | $ 691 | 434,906 | $ (8,341) | $ (202,116) | $ 280,426 | (15,767) | 489,799 |
Unrealized gain (loss) on interest rate swaps, net of tax | (965) | (965) | |||||
Foreign currency translation adjustment | $ (7,624) | (7,624) | |||||
Common stock issued under equity incentive plans, net of shares withheld for employee taxes and strike price (in shares) | 460,398 | ||||||
Common stock issued under equity incentive plans, net of shares withheld for employee taxes and strike price | $ 5 | $ (9,626) | (9,621) | ||||
Net share settlement of restricted stock awards (in shares) | (65,763) | ||||||
Net share settlement of restricted stock awards | $ (3,233) | (3,233) | |||||
Excess tax benefits from equity awards | $ 9,559 | 9,559 | |||||
Share-based compensation | 8,241 | 8,241 | |||||
Pension liability adjustment, net of tax | $ 1,881 | 1,881 | |||||
Net income | $ 77,747 | 77,747 | |||||
Balance (in shares) at Dec. 31, 2015 | 69,582,669 | (3,567,575) | |||||
Balance | $ 691 | 434,906 | $ (8,341) | $ (202,116) | $ 280,426 | $ (15,767) | 465,871 |
Dividends paid | 29 | 29 | |||||
Balance at Dec. 31, 2015 | $ 696 | 443,109 | $ (111,516) | $ (202,116) | $ 358,173 | $ (22,475) | 465,871 |
Stock repurchases (in shares) | (3,303,500) | ||||||
Stock repurchases | $ (99,942) | (99,942) | |||||
Balance | $ 696 | $ 443,109 | $ (111,516) | $ (202,116) | $ 358,173 | $ (22,475) | $ 465,871 |
Consolidated Statements of Sto6
Consolidated Statements of Stockholders' Equity (Parentheticals) - AOCI Attributable to Parent [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Unrealized gain (loss) on interest rate swaps, tax | $ (609) | $ (860) | $ 462 |
Amortization of unrealized loss on interest rate swaps, tax | 109 | ||
Pension liability adjustment, tax | $ 1,176 | $ (5,658) | $ 5,060 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Operating activities | |||
Net income | $ 77,747 | $ 174,613 | $ 174,539 |
Adjustment to reconcile net income to net cash provided by operating activities: | |||
Depreciation | 16,742 | 13,706 | 10,955 |
Amortization of Intangible Assets | 23,591 | 21,024 | 25,819 |
Amortization of original issue discount | 3,050 | 3,599 | 2,074 |
Amortization of deferred financing costs | $ 2,379 | $ 3,016 | 2,698 |
Amortization of unrealized loss on interest rate swaps | $ 2,381 | ||
Tradename and goodwill impairment | $ 40,687 | ||
Loss on extinguishment of debt | 4,795 | $ 2,084 | $ 15,336 |
(Gain) loss on change in contractual interest rate | $ 2,381 | (16,014) | |
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability | (4,877) | ||
Provision for losses on accounts receivable | $ 481 | 672 | $ 1,037 |
Deferred income taxes | 26,955 | 37,878 | 82,675 |
Loss on disposal of property and equipment | 59 | 576 | 370 |
Share-based compensation expense | 8,241 | 12,612 | 12,368 |
Net changes in operating assets and liabilities: | |||
Accounts receivable | 9,610 | (2,988) | (5,257) |
Inventories | 9,084 | 3,508 | (52,488) |
Other assets | 5,063 | 2,456 | (10,902) |
Accounts payable | (27,771) | 15,269 | (5,847) |
Accrued wages and employee benefits | (5,361) | (9,405) | 6,248 |
Other accrued liabilities | 445 | 6,229 | 9,491 |
Excess tax benefits from equity awards | (9,559) | (10,972) | (11,553) |
Net cash provided by operating activities | 188,619 | 252,986 | 259,944 |
Investing activities | |||
Proceeds from sale of property and equipment | 105 | 394 | 80 |
Expenditures for property and equipment | $ (30,651) | $ (34,689) | (30,770) |
Proceeds from sale of business, net | 2,254 | ||
Acquisitions of businesses, net of cash acquired | $ (73,782) | $ (61,196) | (116,113) |
Net cash used in investing activities | (104,328) | (95,491) | (144,549) |
Financing activities | |||
Proceeds from short-term borrowings | 26,384 | $ 6,550 | 16,007 |
Proceeds from long-term borrowings | 100,000 | 1,200,000 | |
Repayments of short-term borrowings | (23,149) | $ (26,444) | (18,982) |
Repayments of long-term borrowings and capital lease obligations | (150,826) | $ (94,035) | $ (901,184) |
Stock repurchases | (99,942) | ||
Payment of debt issuance costs | (2,117) | $ (4) | $ (22,376) |
Cash dividends paid | (1,436) | (902) | (343,429) |
Taxes paid related to the net share settlement of equity awards | (12,956) | (12,160) | (14,988) |
Excess tax benefits from equity awards | 9,559 | 10,972 | 11,553 |
Net cash used in financing activities | (154,483) | (116,023) | (73,399) |
Effect of exchange rate changes on cash and cash equivalents | (3,712) | (1,858) | 128 |
Net increase (decrease) in cash and cash equivalents | (73,904) | 39,614 | 42,124 |
Cash and cash equivalents at beginning of period | 189,761 | 150,147 | 108,023 |
Cash and cash equivalents at end of period | 115,857 | 189,761 | 150,147 |
Supplemental disclosure of cash flow information | |||
Interest | 39,524 | 42,592 | 55,828 |
Income taxes | $ 6,087 | $ 34,283 | $ 25,821 |
Note 1 - Description of Busines
Note 1 - Description of Business and Basis of Presentation | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Business Description and Basis of Presentation [Text Block] | 1. Description of Business Generac Holdings Inc. (the Company) is a leading designer and manufacturer of a wide range of power generation equipment and other engine powered products serving the residential, light-commercial, industrial, oil & gas, and construction markets. Generac’s power products are available globally through a broad network of independent dealers, distributors, retailers, wholesalers and equipment rental companies, as well as sold direct to certain end user customers. The Company has executed a number of acquisitions that support our strategic plan (refer to Item 1 in this Annual Report on Form 10-K for discussion of our Powering Ahead strategic plan). A summary of these acquisitions include the following: ● On October 3, 2011, the Company acquired substantially all the assets of Magnum Products (Magnum), a supplier of generator powered light towers and mobile generators for a variety of industrial applications. The Magnum business is a strategic fit for the Company as it provides diversification through the introduction of new engine powered products, distribution channels and end markets. ● On December 8, 2012, the Company acquired the equity of Ottomotores UK and its affiliates (Ottomotores), with operations in Mexico City, Mexico and Curitiba, Brazil. Ottomotores is a leading manufacturer in the Mexican market for industrial diesel gensets and is a market participant throughout all of Latin America. ● On August 1, 2013, the Company acquired the equity of Tower Light SRL and its wholly-owned subsidiaries (Tower Light). Headquartered outside Milan, Italy, Tower Light is a leading developer and supplier of mobile light towers throughout Europe, the Middle East, Africa and Asia Pacific. ● On November 1, 2013, the Company purchased the assets of Baldor Electric Company’s generator division (Baldor Generators). Baldor Generators offers a complete line of power generation equipment throughout North America with power output up to 2.5MW, which expands the Company’s commercial and industrial product lines. ● On September 2, 2014, the Company acquired the equity of Pramac America LLC (Powermate), resulting in the ownership of the Powermate trade name and the right to license the DeWalt brand name for certain residential engine powered tools. This acquisition expands Generac’s residential product portfolio in the portable generator category. ● On October 1, 2014, the Company acquired MAC, Inc. (MAC). MAC is a leading manufacturer of premium-grade commercial and industrial mobile heaters for the United States and Canadian markets. The acquisition expands the Company’s portfolio of mobile power products and provides increased access to the oil & gas market. ● On August 1, 2015, the Company acquired Country Home Products and its subsidiaries (CHP). CHP is a leading manufacturer of high-quality, innovative, professional-grade engine powered equipment used in a wide variety of property maintenance applications, which are primarily sold in North America under the DR® Power Equipment brand. The acquisition provides an expanded product lineup and additional scale to the Company’s residential engine powered products. |
Note 2 - Significant Accounting
Note 2 - Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Significant Accounting Policies [Text Block] | 2. Significant Accounting Policies Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany amounts and transactions have been eliminated in consolidation. Cash and Cash Equivalents The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. Concentration of Credit Risk The Company maintains the majority of its domestic cash in one commercial bank in multiple operating and investment accounts. Balances on deposit are insured by the Federal Deposit Insurance Corporation (FDIC) up to specified limits. Balances in excess of FDIC limits are uninsured. One customer accounted for approximately 11% and 9% of accounts receivable at December 31, 2015 and 2014, respectively. No one customer accounted for greater than 7%, 8% and 6%, of net sales during the years ended December 31, 2015, 2014, or 2013, respectively. Accounts Receivable Receivables are recorded at their face value amount less an allowance for doubtful accounts. The Company estimates and records an allowance for doubtful accounts based on specific identification and historical experience. The Company writes off uncollectible accounts against the allowance for doubtful accounts after all collection efforts have been exhausted. Sales are generally made on an unsecured basis. Inventories Inventories are stated at the lower of cost or market, with cost determined generally using the first-in, first-out method. Property and Equipment Property and equipment are recorded at cost and are being depreciated using the straight-line method over the estimated useful lives of the assets, which are summarized below (in years). Costs of leasehold improvements are amortized over the lesser of the term of the lease (including renewal option periods) or the estimated useful lives of the improvements. Land improvements 10 – 15 Buildings and improvements 10 – 40 Machinery and equipment 5 – 20 Dies and tools 3 – 10 Vehicles 3 – 5 Office equipment and systems 3 – 15 Leasehold improvements 7 – 20 Debt Issuance Costs Direct and incremental costs incurred in connection with the issuance of long-term debt are capitalized as deferred financing costs and amortized to interest expense over the terms of the related credit agreements. Debt discounts incurred in connection with the issuance of long-term debt are deferred and recorded as a reduction of outstanding debt and amortized to interest expense using the effective interest method over the terms of the related credit agreements. Approximately $5,429, $6,615, and $4,772 of deferred financing costs and original issue discount were amortized to interest expense during fiscal years 2015, 2014 and 2013, respectively. Excluding the impact of any future long-term debt issuances or prepayments, estimated amortization expense for the next five years is as follows: 2016 - $5,355; 2017 - $6,783; 2018 - $7,048; 2019 - $7,323; 2020 - $3,134. Goodwill and Other Indefinite-Lived Intangible Assets Goodwill represents the excess of the purchase price over fair value of identifiable net assets acquired from business acquisitions. Goodwill is not amortized, but is reviewed for impairment on an annual basis and between annual tests if indicators of impairment are present. The Company evaluates goodwill for impairment annually as of October 31 or more frequently when an event occurs or circumstances change that indicates the carrying value may not be recoverable. The Company has the option to assess goodwill for impairment by first performing a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If the Company determines that it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, then further goodwill impairment testing is not required to be performed. If the Company determines that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, the Company is required to perform a two-step goodwill impairment test. In the first step, the fair value of the reporting unit is compared to its book value including goodwill. If the fair value of the reporting unit is in excess of its book value, the related goodwill is not impaired and no further analysis is necessary. If the fair value of the reporting unit is less than its book value, there is an indication of potential impairment and a second step is performed. When required, the second step of testing involves calculating the implied fair value of goodwill for the reporting unit. The implied fair value of goodwill is determined in the same manner as goodwill recognized in a business combination, which is the excess of the fair value of the reporting unit determined in step one over the fair value of its net assets and identifiable intangible assets as if the reporting unit had been acquired. If the carrying value of the reporting unit's goodwill exceeds the implied fair value of that goodwill, an impairment loss is recognized in an amount equal to that excess. For reporting units with a negative book value (i.e., excess of liabilities over assets), qualitative factors are evaluated to determine whether it is necessary to perform the second step of the goodwill impairment test. The Company performed the required annual impairment tests for goodwill as of October 31, 2015, and determined that the fair value of the Ottomotores reporting unit was less than its carrying value, resulting in a non-cash goodwill impairment charge in the fourth quarter of 2015 of $4,611 to write-down the balance of the Ottomotores goodwill. The decrease in fair value of the Ottomotores reporting unit was due to several factors in the second half of 2015: the continued challenges of the Latin American economies, devaluation of the Peso against the US Dollar, the slow development of Mexican energy reform as a result of decreasing oil prices; combining to cause 2015 results to fall short of prior expectations and future forecasts to decrease. The fair value was determined using a discounted cash flow analysis, which utilized key financial assumptions including the sales growth factors discussed above, a 3% terminal growth rate and a 15.7% discount rate. There were no other reporting units with a carrying value at-risk of exceeding fair value as of the October 31, 2015 impairment test date. Other indefinite-lived intangible assets consist of certain tradenames. The Company tests the carrying value of these tradenames by comparing the assets’ fair value to its carrying value. Fair value is measured using a relief-from-royalty approach, which assumes the fair value of the tradename is the discounted cash flows of the amount that would be paid had the Company not owned the tradename and instead licensed the tradename from another company. The Company conducts its annual impairment test for indefinite-lived intangible assets as of October 31 of each year. In the fourth quarter of 2015, the Company’s Board of Directors approved a plan to strategically transition and consolidate certain of the Company’s brands acquired in acquisitions over the past several years to the Generac® tradename. This brand strategy change resulted in a reclassification to a two year remaining useful life for the impacted tradenames causing the fair value to be less than the carrying value using the relief-from-royalty approach in a discounted cash flow analysis. As such, a $36,076 non-cash impairment charge was recorded to write-down the impacted tradenames to net realizable value. Other than the impairment charges discussed above, the Company found no other impairment when performing the required annual impairment tests for goodwill and other indefinite-lived intangible assets for fiscal years 2015, 2014 and 2013. There can be no assurance that future impairment tests will not result in a charge to earnings. Impairment of Long-Lived Assets The Company periodically evaluates the carrying value of long-lived assets (excluding goodwill and indefinite-lived tradenames). Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. If the sum of the expected future undiscounted cash flows is less than the carrying amount of an asset, a loss is recognized for the difference between the fair value and carrying value of the asset. Income Taxes The Company is a C Corporation and therefore accounts for income taxes pursuant to the liability method. Accordingly, the current or deferred tax consequences of a transaction are measured by applying the provision of enacted tax laws to determine the amount of taxes payable currently or in future years. Deferred income taxes are provided for temporary differences between the income tax bases of assets and liabilities and their carrying amounts for financial reporting purposes. In assessing the realizability of deferred tax assets, the Company considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the years in which those temporary differences become deductible. The Company considers taxable income in prior carryback years, the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies, as appropriate, in making this assessment. Revenue Recognition The Company provides for certain estimated sales programs, discounts and incentive expenses which are recognized as a reduction of sales. Shipping and Handling Costs Shipping and handling costs billed to customers are included in net sales, and the related costs are included in cost of goods sold in the consolidated statements of comprehensive income. Advertising and Co-Op Advertising Expenditures for advertising, included in selling and service expenses in the consolidated statements of comprehensive income, are expensed as incurred. Total expenditures for advertising were $39,258, $32,352, and $19,910 for the years ended December 31, 2015, 2014, and 2013, respectively. Research and Development The Company expenses research and development costs as incurred. Total expenditures incurred for research and development were $32,922, $31,494, and $29,271 for the years ended December 31, 2015, 2014 and 2013, respectively. Foreign Currency Translation and Transactions Balance sheet amounts for non-U.S. Dollar functional currency businesses are translated into dollars at the rates of exchange in effect at fiscal year-end. Income and expenses incurred in a foreign currency are translated at the average rates of exchange in effect during the year. The related translation adjustments are made directly to accumulated other comprehensive loss, a component of stockholders’ equity, in the consolidated balance sheets. Gains and losses from foreign currency transactions are recognized as incurred in the consolidated statements of comprehensive income. Fair Value of Financial Instruments The Financial Accounting Standards Board (FASB) Accounting Standards Update (ASC) 820-10, Fair Value Measurement , The Company believes the carrying amount of its financial instruments (cash and cash equivalents, accounts receivable, accounts payable, accrued liabilities, short-term borrowings and ABL facility borrowings), excluding Term Loan borrowings, approximates the fair value of these instruments based upon their short-term nature. The fair value of Term Loan borrowings, which have an aggregate carrying value of $937,060 was approximately $918,319 (Level 2) at December 31, 2015, as calculated based on independent valuations whose inputs and significant value drivers are observable. For the fair value of the assets and liabilities measured on a recurring basis, see the fair value table in Note 4, “Derivative Instruments and Hedging Activities,” to the consolidated financial statements. The fair value of all derivative contracts is classified as Level 2. The valuation techniques used to measure the fair value of derivative contracts, all of which have counterparties with high credit ratings, were based on quoted market prices or model driven valuations using significant inputs derived from or corroborated by observable market data. The fair value of derivative contracts considers the Company’s credit risk in accordance with ASC 820-10. Use of Estimates The preparation of the consolidated financial statements in conformity with U.S. generally accepted accounting principles (U.S. 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. Derivative Instruments and Hedging Activities The Company records all derivatives in accordance with ASC 815, Derivatives and Hedging Stock-Based Compensation Stock-based compensation expense, including stock options and restricted stock awards, is generally recognized on a straight-line basis over the vesting period based on the fair value of awards which are expected to vest. The fair value of all share-based awards is estimated on the date of grant. New Accounting Pronouncements In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers In April 2015, the FASB issued ASU 2015-03, Interest – Imputation of Interest: Simplifying the Presentation of Debt Issuance Costs In September 2015, the FASB issued ASU 2015-16, Business Combinations: Simplifying the Accounting for Measurement Period Adjustments In November 2015, the FASB issued ASU 2015-17, I ncome Taxes: Balance Sheet Classification of Deferred Taxes There are several other new accounting pronouncements issued by the FASB. Each of these pronouncements, as applicable, has been or will be adopted by the Company. Management does not believe any of these accounting pronouncements has had or will have a material impact on the Company’s consolidated financial statements. |
Note 3 - Acquisitions
Note 3 - Acquisitions | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Business Combination Disclosure [Text Block] | 3 . Acquisitions Acquisition of CHP On August 1, 2015, a subsidiary of the Company acquired CHP for a purchase price, net of cash acquired, of $74,570. Headquartered in Vergennes, Vermont, CHP is a leading manufacturer of high-quality, innovative, professional-grade engine powered equipment used in a wide variety of property maintenance applications, with sales primarily in North America. The acquisition purchase price was funded solely through cash on hand. The Company recorded a preliminary purchase price allocation during the third quarter of 2015 based upon its estimates of the fair value of the acquired assets and assumed liabilities. As a result, the Company recorded approximately $81,726 of intangible assets, including approximately $30,076 of goodwill, as of the acquisition date. The purchase price allocation was updated in the fourth quarter of 2015, resulting in a $6,552 decrease to total intangible assets, including an increase of $6,208 in goodwill. The goodwill ascribed to this acquisition is not deductible for tax purposes. In addition, the Company assumed $12,000 of debt along with this acquisition. The accompanying consolidated financial statements include the results of CHP from August 1, 2015 through December 31, 2015. Acquisition of MAC On October 1, 2014, a subsidiary of the Company acquired MAC for a purchase price, net of cash acquired, of $55,035. Headquartered in Bismarck, North Dakota, MAC is a leading manufacturer of premium-grade commercial and industrial mobile heaters within the United States and Canada. The acquisition was funded solely through cash on hand. The Company recorded a preliminary purchase price allocation during the fourth quarter of 2014 based upon its estimates of the fair value of the acquired assets and assumed liabilities. As a result, the Company recorded approximately $49,378 of intangible assets, including approximately $25,898 of goodwill, as of the acquisition date. The purchase price allocation was finalized during the third quarter of 2015, resulting in a $4,229 decrease to total intangible assets, including an increase of $2,481 to goodwill. The goodwill ascribed to this acquisition is not deductible for tax purposes. The accompanying consolidated financial statements include the results of MAC from October 1, 2014 through December 31, 2015. Acquisition of Tower Light On August 1, 2013, a subsidiary of the Company acquired all of the shares of Tower Light for a purchase price, net of cash acquired and inclusive of estimated earn-out payments, of $85,812. Headquartered outside Milan, Italy, Tower Light is a leading developer and supplier of mobile light towers throughout Europe, the Middle East, Africa and Asia Pacific. Tower Light has built a leading market position in the equipment rental markets by leveraging its broad product offering and strong global distribution network in over 50 countries worldwide. The net cash paid at closing was $80,239 and included a cash deposit of $6,645 into an escrow account to fund future earn-out payments required by the purchase agreement. The earn-out payment of $7,641 was finalized during the second quarter of 2014, resulting in a gain of $4,877, which was recorded in the consolidated statement of comprehensive income for the year ended December 31, 2014. The acquisition was funded solely by existing cash. The Company recorded a preliminary purchase price allocation during the third quarter of 2013 based upon its estimates of the fair value of the acquired assets and assumed liabilities. As a result, the Company recorded approximately $67,900 of intangible assets, including approximately $38,400 of goodwill. The purchase price allocation was finalized during the fourth quarter of 2013, resulting in an increase of $9,328 to goodwill. The goodwill ascribed to this acquisition is not deductible for tax purposes. The accompanying consolidated financial statements include the results of Tower Light from August 1, 2013 through December 31, 2015. |
Note 4 - Derivative Instruments
Note 4 - Derivative Instruments and Hedging Activities | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Derivative Instruments and Hedging Activities Disclosure [Text Block] | 4. Derivative Instruments and Hedging Activities Commodities The Company is exposed to significant price fluctuations in commodities it uses as raw materials, and periodically utilizes commodity derivatives to mitigate the impact of these potential price fluctuations on its financial results and its economic well-being. These derivatives typically have maturities of less than eighteen months. At December 31, 2015 and 2014, the Company had one and three commodity contracts outstanding, respectively, covering the purchases of copper. Because these contracts do not qualify for hedge accounting, the related gains and losses are recorded in cost of goods sold in the Company’s consolidated statements of comprehensive income. Net losses recognized were $1,909, $629 and $605 for the years ended December 31, 2015, 2014, and 2013, respectively. Foreign Currencies The Company is exposed to foreign currency exchange risk as a result of transactions denominated in other currencies. The Company periodically utilizes foreign currency forward purchase and sales contracts to manage the volatility associated with certain foreign currency purchases in the normal course of business. Contracts typically have maturities of twelve months or less. As of December 31, 2015 and 2014, the Company had six foreign currency contracts outstanding. Because these contracts do not qualify for hedge accounting, the related gains and losses are recorded in cost of goods sold in the Company’s consolidated statements of comprehensive income. Net losses recognized for the years ended December 31, 2015, 2014 and 2013 were $624, $149 and $56, respectively. Interest Rate Swaps As of May 30, 2012, the Company had four interest rate swap agreements outstanding. Due to the incorporation of a new interest rate floor provision in the then new credit agreement, which constituted a change in critical terms, the Company concluded that as of May 30, 2012, the then outstanding swaps would no longer be highly effective in achieving offsetting changes in cash flows during the periods the hedges were designated. As a result, the Company was required to de-designate the four outstanding hedges as of May 30, 2012. Beginning May 31, 2012, the effective portion of the swaps prior to the change (i.e. amounts previously recorded in Accumulated Other Comprehensive Loss (AOCL)) were amortized into interest expense over the period of the originally designated hedged transactions which had various termination dates through October 2013. The amount reclassified from AOCL to interest expense on the consolidated statement of comprehensive income for the year ended December 31, 2013 was a loss of $2,381. Future changes in fair value of these swaps were immediately recognized in the consolidated statements of comprehensive income as interest expense, which was a gain of $2,973 for the year ended December 31, 2013. On October 23, 2013, the Company entered into two interest rate swap agreements, and on May 19, 2014, the Company entered into an additional interest rate swap agreement. The Company formally documented all relationships between interest rate hedging instruments and the related hedged items, as well as its risk-management objectives and strategies for undertaking various hedge transactions. These interest rate swap agreements qualify as cash flow hedges, and accordingly, the effective portions of the gains or losses are reported as a component of AOCL. The cash flows of the swaps are recognized as adjustments to interest expense each period. The ineffective portions of the derivatives’ changes in fair value, if any, are immediately recognized in earnings. Fair Value The following table presents the fair value of the Company’s derivatives: December 31 , 5 December 31, 4 Commodity contracts $ (400 ) $ (515 ) Foreign currency contracts (171 ) (149 ) Interest rate swaps (2,618 ) (1,045 ) The fair value of the commodity and foreign currency contracts are included in other accrued liabilities, and the fair value of the interest rate swaps is included in other long-term liabilities in the consolidated balance sheets as of December 31, 2015 and 2014. Excluding the impact of credit risk, the fair value of the derivative contracts as of December 31, 2015 and 2014 is a liability of $3,248 and $1,727, respectively, which represents the amount the Company would need to pay to exit the agreements on those dates. The amount of gains (losses) recognized in AOCL in the consolidated balance sheets on the effective portion of interest rate swaps designated as hedging instruments for the years ended December 31, 2015, 2014 and 2013 were $(965), $(1,420) and $774, respectively. The amount of losses recognized in cost of goods sold in the consolidated statements of comprehensive income for commodity and foreign currency contracts not designated as hedging instruments for the years ended December 31, 2015, 2014 and 2013 were $2,533, $778 and $661, respectively. |
Note 5 - Accumulated Other Comp
Note 5 - Accumulated Other Comprehensive Loss | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Comprehensive Income (Loss) Note [Text Block] | 5. Accumulated Other Comprehensive Loss The following presents a tabular disclosure of changes in AOCL during the years ended December 31, 2015 and 2014, net of tax: Foreign Currency Translation Adjustments Defined Benefit Pension Plan Unrealized Loss on Cash Flow Hedges Total Beginning Balance – January 1, 2015 $ (1,878 ) $ (13,243 ) $ (646 ) $ (15,767 ) Other comprehensive income (loss) before reclassifications (7,624 ) 1,105 (1) (965 )(2) (7,484 ) Amounts reclassified from AOCL - 776 (3) - 776 Net current-period other comprehensive income (loss) (7,624 ) 1,881 (965 ) (6,708 ) Ending Balance – December 31, 2015 $ (9,502 ) $ (11,362 ) $ (1,611 ) $ (22,475 ) Foreign Currency Translation Adjustments Defined Benefit Pension Plan Unrealized Gain (Loss) on Cash Flow Hedges Total Beginning Balance – January 1, 2014 $ 1,204 $ (4,393 ) $ 774 $ (2,415 ) Other comprehensive loss before reclassifications (3,082 ) (8,922 )(4) (1,420 )(5) (13,424 ) Amounts reclassified from AOCL - 72 (6) - 72 Net current-period other comprehensive loss (3,082 ) (8,850 ) (1,420 ) (13,352 ) Ending Balance – December 31, 2014 $ (1,878 ) $ (13,243 ) $ (646 ) $ (15,767 ) (1) Represents unrecognized actuarial gains of $1,829, net of tax effect of $(724), included in the computation of net periodic pension cost for the year ended December 31, 2015. See Note 14, “Benefit Plans,” to the consolidated financial statements for additional information. (2) Represents unrealized losses of $(1,574), net of tax benefit of $609 for the year ended December 31, 2015. (3) Represents actuarial losses of $1,228, net of tax effect of $(452), amortized to net periodic pension cost for the year ended December 31, 2015. See Note 14, “Benefit Plans,” to the consolidated financial statements for additional information. (4) Represents unrecognized actuarial losses of $(14,614), net of tax benefit of $5,692, included in the computation of net periodic pension cost for the year ended December 31, 2014. See Note 14, “Benefit Plans,” to the consolidated financial statements for additional information. (5) Represents unrealized losses of $(2,279), net of tax benefit of $859 for the year ended December 31, 2014. (6) Represents actuarial losses of $106, net of tax effect of $(34), amortized to net periodic pension cost for the year ended December 31, 2014. See Note 14, “Benefit Plans,” to the consolidated financial statements for additional information. |
Note 6 - Segment Reporting
Note 6 - Segment Reporting | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | 6. Segment Reporting The Company has multiple operating segments, which it aggregates into a single reportable segment, based on materially similar economic characteristics, products, production processes, classes of customers and distribution methods. The single reportable segment is the design and manufacture of a wide range of engine power products. The Company’s sales in the United States represent approximately 85%, 84%, and 88% of total sales for the years ended December 31, 2015, 2014 and 2013, respectively. Approximately 93% and 91% of the Company’s identifiable long-lived assets are located in the United States as of December 31, 2015 and 2014, respectively. The Company's product offerings consist primarily of power products with a range of power output geared for varying end customer uses. Residential products and commercial & industrial products are each a similar class of products based on similar power output and end customer. The breakout of net sales between residential, commercial & industrial, and other products is as follows: Year Ended December 31, 2015 2014 2013 Residential products $ 673,764 $ 722,206 $ 843,727 Commercial & industrial products 548,440 652,216 569,890 Other 95,095 86,497 72,148 Total $ 1,317,299 $ 1,460,919 $ 1,485,765 |
Note 7 - Balance Sheet Details
Note 7 - Balance Sheet Details | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Supplemental Balance Sheet Disclosures [Text Block] | 7. Balance Sheet Details Inventories consist of the following: December 31, 2015 2014 Raw material $ 188,354 $ 184,407 Work-in-process 2,856 8,798 Finished goods 144,747 135,567 Reserves for excess and obsolete (10,582 ) (9,387 ) Total $ 325,375 $ 319,385 As of December 31, 2015 and 2014 , inventories totaling $11,253 and $12,497 , respectively, were on consignment at customer locations. Property and equipment consists of the following: December 31, 2015 2014 Land and improvements $ 8,553 $ 7,803 Buildings and improvements 104,774 102,254 Machinery and equipment 72,280 65,240 Dies and tools 20,066 16,897 Vehicles 1,244 1,383 Office equipment and systems 29,395 21,990 Leasehold improvements 3,338 2,535 Construction in progress 30,482 20,120 Gross property and equipment 270,132 238,222 Accumulated depreciation (85,919 ) (69,401 ) Total $ 184,213 $ 168,821 |
Note 8 - Goodwill and Intangibl
Note 8 - Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Goodwill and Intangible Assets Disclosure [Text Block] | 8. Goodwill and Intangible Assets The changes in the carrying amount of goodwill for the years ended December 31, 2015 and 2014 are as follows: Year Ended December 31, 2015 Year Ended December 31, 2014 Gross Accumulated Impairment Net Gross Accumulated Impairment Net Balance at beginning of year $ 1,138,758 $ (503,193 ) $ 635,565 $ 1,111,480 $ (503,193 ) $ 608,287 Acquisitions of businesses, net 38,765 - $ 38,765 27,278 - $ 27,278 Impairment - (4,611 ) (4,611 ) - - - Balance at end of year $ 1,177,523 $ (507,804 ) $ 669,719 $ 1,138,758 $ (503,193 ) $ 635,565 See Note 3, “Acquisitions,” to the consolidated financial statements for further information regarding the Company’s acquisitions and Note 2, “Significant Accounting Policies – Goodwill and Other Indefinite-Lived Intangible Assets,” to the consolidated financial statements for further information regarding the Company’s 2015 goodwill impairment charge. The following table summarizes intangible assets by major category as of December 31, 2015 and 2014: Weighted Average December 31, 2015 December 31, 2014 Amortization Years Cost Accumulated Amortization Amortized Cost Cost Accumulated Amortization Amortized Cost Finite-lived intangible assets: Tradenames 7 $ 43,252 $ (10,516 ) $ 32,736 $ 8,775 $ (8,775 ) $ - Customer lists 9 314,600 (275,287 ) 39,313 304,180 (263,178 ) 41,002 Patents 14 126,491 (72,719 ) 53,772 121,341 (64,447 ) 56,894 Unpatented technology 15 13,169 (11,628 ) 1,541 13,169 (10,435 ) 2,734 Software 9 1,046 (1,042 ) 4 1,046 (1,037 ) 9 Non-compete/other 9 1,731 (508 ) 1,223 1,961 (406 ) 1,555 Total finite-lived intangible assets $ 500,289 $ (371,700 ) $ 128,589 $ 450,472 $ (348,278 ) $ 102,194 Indefinite-lived tradenames 128,321 - 128,321 182,684 - 182,684 Total intangible assets $ 628,610 $ (371,700 ) $ 256,910 $ 633,156 $ (348,278 ) $ 284,878 See Note 2, “Significant Accounting Policies – Goodwill and Other Indefinite-Lived Intangible Assets,” to the consolidated financial statements for further information regarding the Company’s 2015 brand strategy change and resulting tradename impairment charge. Amortization of intangible assets was $23,591, $21,024 and $25,819 in 2015, 2014 and 2013, respectively. Excluding the impact of any future acquisitions, the Company estimates amortization expense for the next five years will be as follows: 2016 - $29,184; 2017 - $25,832; 2018 - $15,535; 2019 - $13,835; 2020 - $13,762. |
Note 9 - Product Warranty Oblig
Note 9 - Product Warranty Obligations | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Product Warranty Disclosure [Text Block] | 9. Product Warranty Obligations The Company records a liability for product warranty obligations at the time of sale to a customer based upon historical warranty experience. The Company also records a liability for specific warranty matters when they become known and are reasonably estimable. Additionally, the Company sells extended warranty coverage for certain products. The sales of extended warranties are recorded as deferred revenue, which is recognized over the life of the contracts. The following is a tabular reconciliation of the product warranty liability, excluding the deferred revenue related to our extended warranty coverage: Year Ended December 31, 2015 2014 2013 Balance at beginning of year $ 30,909 $ 33,734 $ 36,111 Product warranty reserve assumed in acquisition 351 360 600 Payments (21,686 ) (20,975 ) (19,084 ) Provision for warranties issued 20,823 22,890 33,707 Changes in estimates for pre-existing warranties (200 ) (5,100 ) (17,600 ) Balance at end of year $ 30,197 $ 30,909 $ 33,734 The following is a tabular reconciliation of the deferred revenue related to extended warranty coverage: Year Ended December 31, 2015 2014 2013 Balance at beginning of year $ 27,193 $ 23,092 $ 13,474 Deferred revenue contracts assumed in acquisition 291 - - Deferred revenue contracts sold 5,978 7,343 11,998 Amortization of deferred revenue contracts (4,501 ) (3,242 ) (2,380 ) Balance at end of year $ 28,961 $ 27,193 $ 23,092 Product warranty obligations and warranty related deferred revenues are included in the balance sheets as follows: December 31, 201 5 201 4 Product warranty liability Current portion - other accrued liabilities $ 21,726 $ 24,143 Long-term portion - other long-term liabilities 8,471 6,766 Total $ 30,197 $ 30,909 Deferred revenue related to extended warranty Current portion - other accrued liabilities $ 6,026 $ 4,519 Long-term portion - other long-term liabilities 22,935 22,674 Total $ 28,961 $ 27,193 |
Note 10 - Credit Agreements
Note 10 - Credit Agreements | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | 10. Credit Agreements Short-term borrowings are included in the consolidated balance sheets as follows: December 31, 201 5 201 4 ABL facility $ - $ - Other lines of credit 8,594 5,359 Total $ 8,594 $ 5,359 Long-term borrowings are included in the consolidated balance sheets as follows: December 31, 2015 2014 Term loan $ 954,000 $ 1,104,000 Original issue discount (16,940 ) (23,861 ) ABL facility 100,000 - Capital lease obligation 1,694 2,059 Other 12,000 460 Total 1,050,754 1,082,658 Less: current portion of debt 500 389 Less: current portion of capital lease obligation 157 168 Total $ 1,050,097 $ 1,082,101 Maturities of long-term borrowings outstanding at December 31, 2015, are as follows: Year 2016 $ 657 2017 11,666 2018 172 2019 177 After 2019 1,055,022 Total $ 1,067,694 On May 31, 2013, the Company amended and restated its then existing term loan credit agreement (Previous Term Loan) by entering into a new term loan credit agreement (Term Loan) with certain commercial banks and other lenders. The Term Loan provides for a $1,200,000 term loan B credit facility and includes a $300,000 uncommitted incremental term loan facility. The Term Loan matures on May 31, 2020. Proceeds from the Term Loan were used to repay amounts outstanding under the Company’s Previous Term Loan and to fund a special cash dividend of $5.00 per share on the Company’s common stock (See Note 17, “Special Cash Dividend” to the consolidated financial statements for additional details). Remaining funds from the Term Loan were used for general corporate purposes and to pay related financing fees and expenses. The Term Loan is guaranteed by all of the Company’s wholly-owned domestic restricted subsidiaries, and is secured by associated collateral agreements which pledge a first priority lien on virtually all of the Company’s assets, including fixed assets and intangibles, other than all cash, trade accounts receivable, inventory, and other current assets and proceeds thereof, which are secured by a second priority lien. The Term Loan initially bore interest at rates based upon either a base rate plus an applicable margin of 1.75% or adjusted LIBOR rate plus an applicable margin of 2.75%, subject to a LIBOR floor of 0.75%. Beginning in the second quarter of 2014, and measured each quarterly period thereafter, the applicable margin related to base rate loans is reduced to 1.50% and the applicable margin related to LIBOR rate loans is reduced to 2.50% to the extent that the Company’s net debt leverage ratio, as defined in the Term Loan, falls below 3.00 to 1.00 for that measurement period. Because the Company’s net debt leverage ratio was below 3.00 to 1.00 on April 1, 2014, it realized a 25 basis point reduction in borrowing costs in the second quarter of 2014. As a result, the Company recorded a catch-up gain of $16,014 in the second quarter of 2014 which represents the total cash interest savings over the remaining term of the loan, as the Company projected the net debt leverage ratio to remain below 3.00 to 1.00. The gain was recorded as original issue discount on long-term borrowings in the consolidated balance sheets. Because the Company’s net debt leverage ratio was above 3.00 to 1.00 on July 1, 2015, it realized a 25 basis point increase in borrowing costs in the third quarter of 2015. As a result, the Company recorded a catch-up loss of $2,381 in the third quarter of 2015, which represents the additional cash interest expected to be paid while the net debt leverage ratio is forecasted to be above 3.00 to 1.00. The loss was recorded against original issue discount on long-term borrowings in the consolidated balance sheets. The Company’s net debt leverage ratio as of December 31, 2015 was above 3.00 to 1.00. On May 18, 2015, the Company amended certain provisions and covenants of the Term Loan. In connection with this amendment and in accordance with ASC 470-50, Debt Modifications and Extinguishments Concurrent with the closing of the Term Loan on May 31, 2013, the Company amended its then existing ABL credit agreement. The amendment provides for a one year extension of the maturity date on the $150,000 senior secured ABL revolving credit facility (ABL Facility). The extended maturity date of the ABL Facility was May 31, 2018. Borrowings under the ABL Facility are guaranteed by all of the Company’s wholly-owned domestic restricted subsidiaries, and are secured by associated collateral agreements which pledge a first priority lien on all cash, trade accounts receivable, inventory, and other current assets and proceeds thereof, and a second priority lien on all other assets, including fixed assets and intangibles of the Company and certain domestic subsidiaries. ABL Facility borrowings initially bore interest at rates based upon either a base rate plus an applicable margin of 1.00% or adjusted LIBOR rate plus an applicable margin of 2.00%, in each case, subject to adjustments based upon average availability under the ABL Facility. On May 29, 2015, the Company amended its ABL Facility. The amendment (i) increases the ABL Facility from $150,000 to $250,000 (Amended ABL Facility), (ii) extends the maturity date from May 31, 2018 to May 29, 2020, (iii) increases the uncommitted incremental facility from $50,000 to $100,000, (iv) reduces the interest rate spread by 50 basis points and (v) reduces the unused line fee by 12.5 basis points across all tiers. Additionally, the amendment relaxes certain restrictions on the Company’s ability to, among other things, (i) make additional investments and acquisitions (including foreign acquisitions), (ii) make restricted payments and (iii) incur additional secured and unsecured debt (including foreign subsidiary debt). In connection with this amendment and in accordance with ASC 470-50, the Company capitalized $540 of new debt issuance costs in 2015. On May 29, 2015, the Company borrowed $100,000 under the Amended ABL Facility, the proceeds of which were used as a voluntary prepayment towards the Term Loan. As of December 31, 2015, there was $100,000 outstanding under the Amended ABL Facility, leaving $148,500 of availability, net of outstanding letters of credit. On February 11 and May 2, 2013, the Company made voluntary prepayments of the Previous Term Loan of $80,000 and $30,000, respectively, with available cash on hand that was applied to future principal amortizations on the Previous Term Loan. As a result of the prepayments, the Company wrote off $2,763 of original issue discount and capitalized debt issuance costs during the year ended December 31, 2013 as a loss on extinguishment of debt in the consolidated statement of comprehensive income. In connection with the May 31, 2013 refinancing, the Company capitalized $21,824 of new debt issuance costs, recorded $13,797 of fees paid to creditors as original issue discount, expensed $7,100 of transaction fees and wrote-off $5,473 of unamortized debt issuance costs and original issue discount relating to the Previous Term Loan and ABL credit agreement. Amounts expensed were recorded as a loss on extinguishment of debt in the consolidated statement of comprehensive income for the year ended December 31, 2013. The Company amortizes both the capitalized debt issuance costs and the original issue discount on its loans under the catch-up approach of the effective interest method. On April 30, September 30 and December 31, 2014, the Company made voluntary prepayments of the Term Loan of $12,000, $50,000 and $25,000, respectively, with available cash on hand that was applied to future principal amortizations and the Excess Cash Flow payment requirement in the Term Loan. As a result of the prepayments, the Company wrote off $2,084 of original issue discount and capitalized debt issuance costs during the year ended December 31, 2014 as a loss on extinguishment of debt in the consolidated statement of comprehensive income. On March 30 and May 29, 2015, the Company made voluntary prepayments of the Term Loan of $50,000 and $100,000, respectively, which will be applied to the Excess Cash Flow payment requirement in the Term Loan. As a result of the prepayments, the Company wrote off $4,795 of original issue discount and capitalized debt issuance costs during the year ended December 31, 2015 as a loss on extinguishment of debt in the condensed consolidated statement of comprehensive income. As of December 31, 2015 and December 31, 2014, short-term borrowings consisted primarily of borrowings by our foreign subsidiaries on local lines of credit, which totaled $8,594 and $5,359, respectively. |
Note 11 - Stock Repurchase Prog
Note 11 - Stock Repurchase Program | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Treasury Stock [Text Block] | 11 . Stock Repurchase Program On August 5, 2015, the Company’s Board of Directors approved a $200,000 stock repurchase program. Under the program, the Company may repurchase up to $200,000 of its common stock over 24 months from time to time, in amounts and at prices the Company deems appropriate, subject to market conditions and other considerations. The repurchase may be executed using open market purchases, privately negotiated agreements or other transactions. The actual timing, number and value of shares repurchased under the program will be determined by management at its discretion and will depend on a number of factors, including the market price of the Company’s shares of common stock and general market and economic conditions, applicable legal requirements, and compliance with the terms of the Company’s outstanding indebtedness. The stock repurchase program may be suspended or discontinued at any time without prior notice. For the year ended December 31, 2015, the Company repurchased 3,303,500 shares of its common stock for $99,942, funded with cash on hand. |
Note 12 - Earnings Per Share
Note 12 - Earnings Per Share | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | 12 . Earnings Per Share Basic earnings per share is calculated by dividing net income by the weighted average number of common shares outstanding during the period, exclusive of restricted shares. Except where the result would be anti-dilutive, dilutive earnings per share is calculated by assuming the vesting of unvested restricted stock and the exercise of stock options, as well as their related income tax benefits. The following table reconciles the numerator and the denominator used to calculate basic and diluted earnings per share: Year Ended December 31, 2015 2014 2013 Net income (numerator) $ 77,747 $ 174,613 $ 174,539 Weighted average shares (denominator) Basic 68,096,051 68,538,248 68,081,632 Dilutive effect of stock compensation awards (1) 1,104,246 1,632,796 1,585,897 Diluted 69,200,297 70,171,044 69,667,529 Net income per share Basic $ 1.14 $ 2.55 $ 2.56 Diluted $ 1.12 $ 2.49 $ 2.51 (1) Excludes approximately 161,400, 81,600 and 10,300 stock options for the years ended December 31, 2015, 2014 and 2013, respectively, as the impact of such awards was anti-dilutive. Excludes approximately 1,000 shares of restricted stock for the year ended December 31, 2015, as the impact of such awards was anti-dilutive. |
Note 13 - Income Taxes
Note 13 - Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | 13. Income Taxes The Company’s provision for income taxes consists of the following: Year Ended December 31, 2015 2014 2013 Current: Federal $ 13,614 $ 38,161 $ 48,287 State 1,966 1,645 5,648 Foreign 3,588 5,701 2,214 19,168 45,507 56,149 Deferred: Federal $ 31,869 $ 42,474 $ 42,003 State 1,387 (3,134 ) 5,523 Foreign (7,326 ) (1,462 ) 167 25,930 37,878 47,693 Change in valuation allowance 138 364 335 Provision for income taxes $ 45,236 $ 83,749 $ 104,177 During 2015, the Internal Revenue Service completed field work on income tax audits for the 2012 and 2013 tax years. A final audit report was issued and resulted in no change to the Company’s provision for income taxes. As of December 31, 2015, due to the carryforward of net operating losses, and research and development credits, the Company is open to U.S. federal and state income tax examinations for the tax years 2006 through 2014. In addition, the Company is subject to audit by various foreign taxing jurisdictions for the tax years 2010 through 2015. Significant components of deferred tax assets and liabilities are as follows: December 31, 2015 2014 Deferred tax assets: Goodwill and intangible assets $ - $ 23,624 Accrued expenses 18,982 18,191 Deferred revenue 9,389 7,945 Inventories 9,772 9,177 Pension obligations 7,684 8,738 Stock-based compensation 7,974 8,628 Operating loss and credit carryforwards 15,677 10,047 Other 2,842 1,428 Valuation allowance (1,523 ) (1,385 ) Total deferred tax assets 70,797 86,393 Deferred tax liabilitites: Goodwill and intangible assets 12,455 - Depreciation 19,507 18,535 Debt refinancing costs 7,732 10,925 Prepaid expenses 1,241 1,032 Total deferred tax liabilities 40,935 30,492 Net deferred tax assets $ 29,862 $ 55,901 The net current and noncurrent components of deferred taxes included in the consolidated balance sheets are as follows: December 31, 2015 2014 Net current deferred tax assets $ 29,355 $ 22,841 Net long-term deferred tax assets 8,196 47,894 Net long-term deferred tax liabilitites (6,166 ) (13,449 ) Valuation allowance (1,523 ) (1,385 ) Net deferred tax assets $ 29,862 $ 55,901 Generac Brazil, acquired as part of the Ottomotores acquisition, has generated net operating losses for multiple years as part of the start-up of the business. The realizability of the deferred tax assets associated with these net operating losses is uncertain so a valuation allowance was recorded in the opening balance sheet as of December 8, 2012 and continued through December 31, 2015. At December 31, 2015, the Company had state research and development credit, and state manufacturing credit carryforwards of approximately $16,275 and $3,132, respectively, which expire between 2017 and 2030. Changes in the Company’s gross liability for unrecognized tax benefits, excluding interest and penalties, were as follows: December 31, 2015 2014 Unrecognized tax benefit, beginning of period $ 6,394 $ - Increase in unrecognized tax benefit for positions taken in current period 845 6,394 Unrecognized tax benefit, end of period $ 7,239 $ 6,394 The entire unrecognized tax benefit as of December 31, 2015 and 2014, if recognized, would impact the effective tax rate. Interest and penalties are recorded as a component of income tax expense. As of December 31, 2015 and 2014, total interest of approximately $174 and $86, respectively, and penalties of approximately $363 and $263, respectively, associated with net unrecognized tax benefits are included in the Company’s consolidated balance sheets. There were no interest or penalties related to income taxes that had been accrued or recognized as of and for the year ended December 31, 2013. The Company does not expect a significant increase or decrease to the total amounts of unrecognized tax benefits related to continuing operations during the fiscal year ending December 31, 2016. The Company considers the earnings of certain non-U.S. subsidiaries to be indefinitely invested outside the United States on the basis of estimates that future domestic cash generation will be sufficient to meet future domestic cash needs and the Company’s specific plans for reinvestment of those subsidiary earnings. The Company has not provided for additional U.S. income taxes on approximately $11,430 of undistributed earnings of consolidated non-U.S. subsidiaries. It is not practicable to estimate the amount of unrecognized withholding taxes and deferred tax liability on such earnings. A reconciliation of the statutory tax rates and the effective tax rates for the years ended December 31, 2015, 2014 and 2013 are as follows: Year Ended December 31, 2015 2014 2013 U.S. stautory rate 35.0 % 35.0 % 35.0 % State taxes 4.1 3.1 3.7 Valuation allowance 0.6 0.2 0.2 Research and development credits (2.3 ) (5.0 ) (0.6 ) Other (0.6 ) (0.9 ) (0.9 ) Effective tax rate 36.8 % 32.4 % 37.4 % |
Note 14 - Benefit Plans
Note 14 - Benefit Plans | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Pension and Other Postretirement Benefits Disclosure [Text Block] | 14. Benefit Plans Medical and Dental Plan The Company maintains medical and dental benefit plans covering its full-time domestic employees and their dependents. Certain plans are partially or fully self-funded plans under which participant claims are obligations of the plan. These plans are funded through employer and employee contributions at a level sufficient to pay for the benefits provided by the plan. The Company’s contributions to the plans were $14,352, $11,701, and $9,500 for the years ended December 31, 2015, 2014, and 2013, respectively. During 2015, the Company paid premiums of $3,400 for other standard medical benefits covering certain full-time employees. The Company’s foreign subsidiaries participate in government sponsored medical benefit plans. In certain cases, the Company purchases supplemental medical coverage for certain employees at these foreign locations. The expenses related to these plans are not material to the Company’s consolidated financial statements. Savings Plan The Company maintains defined-contribution 401(k) savings plans for eligible domestic employees. Under the plans, employees may defer receipt of a portion of their eligible compensation. The Company amended the 401(k) savings plans effective January 1, 2009, to add Company matching and non-elective contributions. The Company may contribute a matching contribution of 50% of the first 6% of eligible compensation of employees. The Company may also contribute a non-elective contribution for eligible employees employed on December 31, 2008. Both Company matching contributions and non-elective contributions are subject to vesting. Forfeitures may be applied against plan expenses and company contributions. The Company recognized $3,000, $3,400 and $3,300 of expense related to this plan in 2015, 2014 and 2013, respectively. Pension Plans The Company has frozen noncontributory salaried and hourly pension plans (Pension Plans) covering certain domestic employees. The benefits under the salaried plan are based upon years of service and the participants’ defined final average monthly compensation. The benefits under the hourly plan are based on a unit amount at the date of termination multiplied by the participant’s years of credited service. The Company’s funding policy for the Pension Plans is to contribute amounts at least equal to the minimum annual amount required by applicable regulations. The Company uses a December 31 measurement date for the Pension Plans. The table that includes the accumulated benefit obligation and reconciliation of the changes in projected benefit obligation, changes in plan assets and the funded status of the Pension Plans is as follows: Year Ended December 31, 2015 2014 Accumulated benefit obligation at end of period $ 63,894 $ 68,376 Change in projected benefit obligation Projected benefit obligation at beginning of period $ 68,376 $ 52,825 Interest cost 2,681 2,591 Net actuarial loss (gain) (5,254 ) 14,791 Benefits paid (1,909 ) (1,831 ) Projected benefit obligation at end of period $ 63,894 $ 68,376 Change in plan assets Fair value of plan assets at beginning of period $ 45,452 $ 42,440 Actual return (loss) on plan assets (384 ) 3,110 Company contributions 826 1,733 Benefits paid (1,909 ) (1,831 ) Fair value of plan assets at end of period $ 43,985 $ 45,452 Funded status: accrued pension liability included in other long-term liabilities $ (19,909 ) $ (22,924 ) Amounts recognized in accumulated other comprehensive loss Net actuarial loss $ (11,362 ) $ (13,243 ) The actuarial loss for the Pension Plans that was amortized from AOCL into net periodic (benefit) cost during 2015 is $1,228. The amount in AOCL as of December 31, 2015 that is expected to be recognized as a component of net periodic pension expense during the next fiscal year is $941. The components of net periodic pension (benefit) cost are as follows: Year E nded December 31, 201 5 201 4 201 3 Components of net periodic pension (benefit) cost: Interest cost $ 2,681 $ 2,591 $ 2,423 Expected return on plan assets (3,041 ) (2,933 ) (2,520 ) Amortization of net loss 1,228 106 1,108 Net periodic pension (benefit) cost $ 868 $ (236 ) $ 1,011 Weighted-average assumptions used to determine the benefit obligations are as follows: December 31, 2015 2014 Discount rate – salaried pension plan 4.36 % 3.97 % Discount rate – hourly pension plan 4.39 % 3.99 % Rate of compensation increase (1) n/a n/a (1) No compensation increase was assumed as the plans were frozen effective December 31, 2008. Weighted-average assumptions used to determine net periodic pension (benefit) cost are as follows: Y ear E nded December 31, 201 5 201 4 201 3 Discount rate 3.99 % 5.01 % 4.14 % Expected long-term rate of return on plan assets 6.75 % 6.88 % 6.95 % Rate of compensation increase (1) n/a n/a n/a (1) No compensation increase was assumed as the plans were frozen effective December 31, 2008. To determine the long-term rate of return assumption for plan assets, the Company studies historical markets and preserves the long-term historical relationships between equities and fixed-income securities consistent with the widely accepted capital market principle that assets with higher volatility generate a greater return over the long run. The Company evaluates current market factors such as inflation and interest rates before it determines long-term capital market assumptions and reviews peer data and historical returns to check for reasonableness and appropriateness. The Pension Plan’s weighted-average asset allocation at December 31, 2015 and 2014, by asset category, is as follows: December 31, 2015 December 31, 2014 Asset Category Target Dollars % Dollars % Fixed Income 20% $ 8,571 19 % $ 7,400 16 % Domestic equity 49% 20,479 47 % 24,373 54 % International equity 21% 9,687 22 % 8,869 19 % Real estate 10% 5,248 12 % 4,810 11 % Total 100% $ 43,985 100 % $ 45,452 100 % The fair values of the Pension Plans’ assets at December 31, 2015 are as follows: Total Quoted Prices in Active Markets for Identical A sset (L evel 1) Significant Observable I nputs (L evel 2) Significant Unobservable I nputs (L evel 3) Mutual funds $ 40,310 $ 40,310 $ – $ – Other investments 3,675 – – 3,675 Total $ 43,985 $ 40,310 $ – $ 3,675 The fair values of the Pension Plan's assets at December 31, 2014 are as follows: Total Quoted Prices in Active Markets for Identical A sset (L evel 1) Significant O b servable I nputs (L evel 2) Significant Unobservable I nputs (L evel 3) Mutual funds $ 42,267 $ 42,267 $ – $ – Other investments 3,185 – – 3,185 Total $ 45,452 $ 42,267 $ – $ 3,185 A reconciliation of beginning and ending balances for Level 3 assets for the years ended December 31, 2015 and 2014 is as follows: 2015 2014 Balance at beginning of period $ 3,185 $ – Purchases 408 3,100 Realized gains 82 85 Balance at end of period $ 3,675 $ 3,185 Mutual Funds Other Investments The Company’s target allocation for equity securities and real estate is generally between 65% - 85%, with the remainder allocated primarily to fixed income (bonds). The Company regularly reviews its actual asset allocation and periodically rebalances its investments to the targeted allocation when considered appropriate. The Company expects to make estimated contributions of $741 to the Pension Plans in 2016. The following benefit payments are expected to be paid from the Pension Plans: Year 2016 $ 2,052 2017 2,231 2018 2,340 2019 2,424 2020 2,552 2021 – 2025 15,238 Certain of the Company’s foreign subsidiaries participate in local defined benefit or other post-employment benefit plans. These plans provide benefits that are generally based on years of credited service and a percentage of the employee’s eligible compensation earned throughout the applicable service period. Liabilities recorded under these plans are included in accrued wages and employee benefits in the Company’s consolidated balance sheets and are not material. |
Note 15 - Share Plans
Note 15 - Share Plans | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | 1 5 . Share Plans The Company adopted an equity incentive plan (Plan) on February 10, 2010 in connection with its initial public offering. The Plan, as amended, allows for granting of up to 9.1 million stock-based awards to executives, directors and employees. Awards available for grant under the Plan include stock options, stock appreciation rights, restricted stock, other stock-based awards, and performance-based compensation awards. Total share-based compensation expense related to the Plan was $8,241, $12,612 and $12,368 for the years ended December 31, 2015, 2014 and 2013, respectively, net of estimated forfeitures, which is recorded in operating expenses in the consolidated statements of comprehensive income. Stock Options On June 21, 2013, the Company paid a special cash dividend of $5.00 per share on its common stock. In connection with this special dividend, and pursuant to the terms of the Company’s Plan, certain adjustments were made to stock options outstanding in order to avoid dilution of the intended benefits which would otherwise result as a consequence of the special dividend. As such, the strike price for all outstanding stock options as of the special dividend date, were adjusted by the $5.00 special dividend amount. There was no change to compensation expense as a result of this adjustment. Stock options issued in 2012 - 2015 vest in equal installments over four years, subject to the grantee’s continued employment or service and expire ten years after the date of grant. Stock options issued in 2011 and 2010 vest in equal installments over five years, subject to the grantee’s continued employment or service and expire ten years after the date of grant. Stock option exercises are net-share settled such that the Company withholds shares with value equivalent to the exercise price of the stock option awards plus the employees’ minimum statutory obligation for the applicable income and other employment taxes. Total shares withheld were 272,296, 235,644 and 323,427 in 2015, 2014 and 2013, respectively, and were based on the value of the stock on the exercise dates as determined based upon an average of the Company’s high and low stock sales price on the exercise dates. Total payments for the employees’ tax obligations to the taxing authorities were $9,768, $10,411 and $8,449 in 2015, 2014 and 2013, respectively, and are reflected as a financing activity within the consolidated statements of cash flows. The net-share settlement has the effect of share repurchases by the Company as they reduce the number of shares that would have otherwise been issued. The grant-date fair value of each option grant is estimated using the Black-Scholes-Merton option pricing model. The fair value is then amortized on a straight-line basis over the requisite service period of the awards, which is generally the vesting period. Use of a valuation model requires management to make certain assumptions with respect to selected model inputs. Expected volatility is calculated based on an analysis of historic and implied volatility measures for a set of peer companies. The average expected life is based on the contractual term of the option using the simplified method. The risk-free interest rate is based on U.S. Treasury zero-coupon issues with a remaining term equal to the expected life assumed at the date of grant. The compensation expense recognized is net of estimated forfeitures. Forfeitures are estimated based on actual share option forfeiture history. The weighted-average assumptions used in the Black-Scholes-Merton option pricing model for 2015, 2014 and 2013 are as follows: 201 5 201 4 201 3 Weighted average grant date fair value $ 19.07 $ 26.35 $ 16.30 Assumptions: Expected stock price volatility 41 % 45 % 47 % Risk free interest rate 1.72 % 1.90 % 1.21 % Expected annual dividend per share $ - $ - $ - Expected life of options (years) 6.25 6.25 6.25 The Company periodically evaluates its forfeiture rates and updates the rates it uses in the determination of its stock-based compensation expense. The impact of the change to the forfeiture rates on non-cash compensation expense was immaterial for the years ended December 31, 2015, 2014 and 2013. A summary of the Company’s stock option activity and related information for the years ended December 31, 2015, 2014 and 2013 is as follows: Number of Options Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term (in years) Aggregate Intrinsic Value ($ in thousands) Outstanding as of December 31, 2012 3,440,042 $ 8.44 9.5 $ 87,001 Granted 253,857 35.04 Exercised (703,326 ) 6.05 Expired (1,625 ) 20.94 Forfeited (51,647 ) 17.02 Outstanding as of December 31, 2013 2,937,301 5.74 9.5 $ 148,369 Granted 187,189 57.21 Exercised (549,282 ) 3.44 Expired (259 ) 15.94 Forfeited (32,810 ) 12.68 Outstanding as of December 31, 2014 2,542,139 9.94 8.5 $ 96,518 Granted 287,165 45.18 Exercised (604,088 ) 3.79 Expired (6,409 ) 50.11 Forfeited (90,793 ) 37.27 Outstanding as of December 31, 2015 2,128,014 15.15 7.7 $ 40,271 Exercisable as of December 31, 2015 1,574,790 6.08 7.5 $ 39,072 As of December 31, 2015, there was $7,342 of total unrecognized compensation cost, net of expected forfeitures, related to unvested options. The cost is expected to be recognized over the remaining service period, having a weighted-average period of 2.5 years. Total share-based compensation cost related to the stock options for 2015, 2014 and 2013 was $4,198, $8,509 and $9,034, respectively, which is recorded in operating expenses in the consolidated statements of comprehensive income. Restricted Stock Restricted stock vesting is net-share settled such that, upon vesting, the Company withholds shares with value equivalent to the employees’ minimum statutory obligation for the applicable income and other employment taxes, and then pays those taxes on behalf of the employee. In effect, the Company repurchases these shares and classifies as treasury stock, and pays the cash to the taxing authorities on behalf of the employees to satisfy the tax withholding requirements. Total shares withheld were 65,763, 34,854 and 163,458 in 2015, 2014 and 2013, respectively, and were based on the value of the stock on the vesting dates as determined based upon an average of the Company’s high and low stock sales price on the vesting dates. Total payments for the employees’ tax obligations to the taxing authorities were $3,233, $1,770 and $6,571 in 2015, 2014 and 2013, respectively, and are reflected as a financing activity within the consolidated statements of cash flows. A summary of the Company's restricted stock activity for the years ended December 31, 2015, 2014 and 2013 is as follows: Shares Weighted-Average Grant-Date Fair Value Non-vested as of December 31, 2012 665,071 $ 17.75 Granted 112,494 37.82 Vested (450,537 ) 14.21 Forfeited (22,622 ) 25.36 Non-vested as of December 31, 2013 304,406 29.68 Granted 115,473 54.35 Vested (105,123 ) 28.31 Forfeited (47,472 ) 42.31 Non-vested as of December 31, 2014 267,284 38.72 Granted 193,117 41.31 Vested (183,362 ) 32.56 Forfeited (33,999 ) 47.77 Non-vested as of December 31, 2015 243,040 44.16 As of December 31, 2015, there was $6,723 of unrecognized compensation cost, net of expected forfeitures, related to non-vested restricted stock awards. That cost is expected to be recognized over the remaining service period, having a weighted-average period of 2.0 years. Total share-based compensation cost related to the restricted stock for 2015, 2014 and 2013 was $4,043, $4,103 and $3,074, respectively, which is recorded in operating expenses in the consolidated statements of comprehensive income. During 2015, 2014 and 2013, 16,260, 8,869 and 7,291 shares, respectively, of fully vested stock were granted to certain members of the Company’s board of directors as a component of their compensation for their service on the board. Total compensation cost for these share grants in 2015, 2014 and 2013 was $615, $509 and $260, respectively, which is recorded in operating expenses in the consolidated statements of comprehensive income. |
Note 16 - Commitments and Conti
Note 16 - Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | 16. Commitments and Contingencies The Company leases certain manufacturing facilities, computer equipment, automobiles and warehouse space under operating leases. The approximate aggregate minimum rental commitments at December 31, 2015, are as follows: Year Amount 2016 $ 3,561 2017 3,072 2018 3,033 2019 2,153 2020 1,809 After 2020 5,489 Total $ 19,117 Total rent expense for the years ended December 31, 2015, 2014 and 2013, was approximately $4,796, $4,102, and $2,457, respectively. The Company has an arrangement with a finance company to provide floor plan financing for certain dealers. The Company receives payment from the finance company after shipment of product to the dealer. The Company participates in the cost of dealer financing up to certain limits and has agreed to repurchase products repossessed by the finance company, but does not indemnify the finance company for any credit losses they incur. The amount financed by dealers which remained outstanding under this arrangement at December 31, 2015 and 2014 was approximately $32,400 and $26,100, respectively. In the normal course of business, the Company is named as a defendant in various lawsuits in which claims are asserted against the Company. In the opinion of management, the liabilities, if any, which may result from such lawsuits are not expected to have a material adverse effect on the financial position, results of operations, or cash flows of the Company. |
Note 17 - Special Cash Dividend
Note 17 - Special Cash Dividends | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Special Cash Dividends [Text Block ] | 17. Special Cash Dividend On June 21, 2013, the Company used a portion of the proceeds from the May 31, 2013 debt refinancing (see Note 10, “Credit Agreements” to the consolidated financial statements) to pay a special cash dividend of $5.00 per share on its common stock, resulting in payments totaling $340,772 to stockholders on that date. Related dividends declared but unpaid as of December 31, 2015 are $76, which relate to dividends earned on unvested restricted stock awards, and are included in other accrued liabilities in the consolidated balance sheet. Payment of these dividends will be made when the underlying restricted stock awards vest. The balance of retained earnings as of the 2013 dividend declaration date was $4,934. As such, the dividends were first charged to retained earnings and dividends in excess of retained earnings were recorded as a reduction to additional paid-in capital. In connection with the special dividend, and pursuant to the terms of the Company’s stock option plan, certain adjustments were made to stock options outstanding under the plan in order to avoid dilution of the intended benefits which would otherwise result as a consequence of the special dividend. As such, the strike price for all outstanding stock options at that time of the dividend was modified by the $5.00 special dividend amount. There was no change to compensation expense as a result of this adjustment. |
Note 18 - Quarterly Financial I
Note 18 - Quarterly Financial Information (Unaudited) | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Quarterly Financial Information [Text Block] | 18. Quarterly Financial Information (Unaudited) Quarters Ended 201 5 Q1 Q2 Q3 Q4 Net sales $ 311,818 $ 288,360 $ 359,291 $ 357,830 Gross profit 102,603 95,897 130,326 131,124 Operating income 44,911 39,467 67,867 27,316 Net income 19,685 14,844 34,036 9,182 Net income per common share, basic: $ 0.29 $ 0.22 $ 0.50 $ 0.14 Net income per common share, diluted: $ 0.28 $ 0.21 $ 0.49 $ 0.14 Quarters Ended 201 4 Q1 Q2 Q3 Q4 Net sales $ 342,008 $ 362,609 $ 352,305 $ 403,997 Gross profit 119,514 128,012 130,283 138,410 Operating income 65,306 78,160 70,794 79,115 Net income 34,701 54,025 36,497 49,390 Net income per common share, basic: $ 0.51 $ 0.79 $ 0.53 $ 0.72 Net income per common share, diluted: $ 0.50 $ 0.77 $ 0.52 $ 0.70 |
Note 19 - Valuation and Qualify
Note 19 - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Schedule of Valuation and Qualifying Accounts Disclosure [Text Block] | 19. Valuation and Qualifying Accounts For the years ended December 31, 2015, 2014 and 2013: Balance at Beginning of Year Reserves Assumed in Acquisition Additions Charged to Earnings Charges to Reserve, Net (1) Balance at End of Year Year ended December 31, 2015 Allowance for doubtful accounts $ 2,275 $ 63 $ 481 $ (325 ) $ 2,494 Reserves for inventory 9,387 614 3,739 (3,158 ) 10,582 Valuation of deferred tax assets 1,385 - 138 – 1,523 Year ended December 31, 2014 Allowance for doubtful accounts $ 2,658 $ 209 $ 672 $ (1,264 ) $ 2,275 Reserves for inventory 6,558 2,282 2,797 (2,250 ) 9,387 Valuation of deferred tax assets 1,021 - 364 – 1,385 Year ended December 31, 2013 Allowance for doubtful accounts $ 1,166 $ 496 $ 1,037 $ (41 ) $ 2,658 Reserves for inventory 6,999 1,131 72 (1,644 ) 6,558 Valuation of deferred tax assets 806 (120 ) 335 – 1,021 (1) Deductions from the allowance for doubtful accounts equal accounts receivable written off, less recoveries, against the allowance. Deductions from the reserves for inventory excess and obsolete items equal inventory written off against the reserve as items were disposed of. |
Note 20 - Subsequent Events
Note 20 - Subsequent Events | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | 20. Subsequent Events On February 13, 2016, the Company entered into an agreement to acquire a majority ownership interest of PR Industrial S.r.l and its subsidiaries (collectively Pramac), headquartered in Siena, Italy. With over 600 employees, four manufacturing plants and fourteen commercial branches located around the world, Pramac is a leading global manufacturer of stationary, mobile and portable generators sold in over 150 countries through a broad distribution network. The acquisition is anticipated to close prior to the end of the first quarter of 2016. |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Consolidation, Policy [Policy Text Block] | Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany amounts and transactions have been eliminated in consolidation. |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and Cash Equivalents The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. |
Concentration Risk, Credit Risk, Policy [Policy Text Block] | Concentration of Credit Risk The Company maintains the majority of its domestic cash in one commercial bank in multiple operating and investment accounts. Balances on deposit are insured by the Federal Deposit Insurance Corporation (FDIC) up to specified limits. Balances in excess of FDIC limits are uninsured. One customer accounted for approximately 11% and 9% of accounts receivable at December 31, 2015 and 2014, respectively. No one customer accounted for greater than 7%, 8% and 6%, of net sales during the years ended December 31, 2015, 2014, or 2013, respectively. |
Receivables, Policy [Policy Text Block] | Accounts Receivable Receivables are recorded at their face value amount less an allowance for doubtful accounts. The Company estimates and records an allowance for doubtful accounts based on specific identification and historical experience. The Company writes off uncollectible accounts against the allowance for doubtful accounts after all collection efforts have been exhausted. Sales are generally made on an unsecured basis. |
Inventory, Policy [Policy Text Block] | Inventories Inventories are stated at the lower of cost or market, with cost determined generally using the first-in, first-out method. |
Property, Plant and Equipment, Policy [Policy Text Block] | Property and Equipment Property and equipment are recorded at cost and are being depreciated using the straight-line method over the estimated useful lives of the assets, which are summarized below (in years). Costs of leasehold improvements are amortized over the lesser of the term of the lease (including renewal option periods) or the estimated useful lives of the improvements. Land improvements 10 – 15 Buildings and improvements 10 – 40 Machinery and equipment 5 – 20 Dies and tools 3 – 10 Vehicles 3 – 5 Office equipment and systems 3 – 15 Leasehold improvements 7 – 20 |
Debt, Policy [Policy Text Block] | Debt Issuance Costs Direct and incremental costs incurred in connection with the issuance of long-term debt are capitalized as deferred financing costs and amortized to interest expense over the terms of the related credit agreements. Debt discounts incurred in connection with the issuance of long-term debt are deferred and recorded as a reduction of outstanding debt and amortized to interest expense using the effective interest method over the terms of the related credit agreements. Approximately $5,429, $6,615, and $4,772 of deferred financing costs and original issue discount were amortized to interest expense during fiscal years 2015, 2014 and 2013, respectively. Excluding the impact of any future long-term debt issuances or prepayments, estimated amortization expense for the next five years is as follows: 2016 - $5,355; 2017 - $6,783; 2018 - $7,048; 2019 - $7,323; 2020 - $3,134. |
Goodwill and Intangible Assets, Policy [Policy Text Block] | Goodwill and Other Indefinite-Lived Intangible Assets Goodwill represents the excess of the purchase price over fair value of identifiable net assets acquired from business acquisitions. Goodwill is not amortized, but is reviewed for impairment on an annual basis and between annual tests if indicators of impairment are present. The Company evaluates goodwill for impairment annually as of October 31 or more frequently when an event occurs or circumstances change that indicates the carrying value may not be recoverable. The Company has the option to assess goodwill for impairment by first performing a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If the Company determines that it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, then further goodwill impairment testing is not required to be performed. If the Company determines that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, the Company is required to perform a two-step goodwill impairment test. In the first step, the fair value of the reporting unit is compared to its book value including goodwill. If the fair value of the reporting unit is in excess of its book value, the related goodwill is not impaired and no further analysis is necessary. If the fair value of the reporting unit is less than its book value, there is an indication of potential impairment and a second step is performed. When required, the second step of testing involves calculating the implied fair value of goodwill for the reporting unit. The implied fair value of goodwill is determined in the same manner as goodwill recognized in a business combination, which is the excess of the fair value of the reporting unit determined in step one over the fair value of its net assets and identifiable intangible assets as if the reporting unit had been acquired. If the carrying value of the reporting unit's goodwill exceeds the implied fair value of that goodwill, an impairment loss is recognized in an amount equal to that excess. For reporting units with a negative book value (i.e., excess of liabilities over assets), qualitative factors are evaluated to determine whether it is necessary to perform the second step of the goodwill impairment test. The Company performed the required annual impairment tests for goodwill as of October 31, 2015, and determined that the fair value of the Ottomotores reporting unit was less than its carrying value, resulting in a non-cash goodwill impairment charge in the fourth quarter of 2015 of $4,611 to write-down the balance of the Ottomotores goodwill. The decrease in fair value of the Ottomotores reporting unit was due to several factors in the second half of 2015: the continued challenges of the Latin American economies, devaluation of the Peso against the US Dollar, the slow development of Mexican energy reform as a result of decreasing oil prices; combining to cause 2015 results to fall short of prior expectations and future forecasts to decrease. The fair value was determined using a discounted cash flow analysis, which utilized key financial assumptions including the sales growth factors discussed above, a 3% terminal growth rate and a 15.7% discount rate. There were no other reporting units with a carrying value at-risk of exceeding fair value as of the October 31, 2015 impairment test date. Other indefinite-lived intangible assets consist of certain tradenames. The Company tests the carrying value of these tradenames by comparing the assets’ fair value to its carrying value. Fair value is measured using a relief-from-royalty approach, which assumes the fair value of the tradename is the discounted cash flows of the amount that would be paid had the Company not owned the tradename and instead licensed the tradename from another company. The Company conducts its annual impairment test for indefinite-lived intangible assets as of October 31 of each year. In the fourth quarter of 2015, the Company’s Board of Directors approved a plan to strategically transition and consolidate certain of the Company’s brands acquired in acquisitions over the past several years to the Generac® tradename. This brand strategy change resulted in a reclassification to a two year remaining useful life for the impacted tradenames causing the fair value to be less than the carrying value using the relief-from-royalty approach in a discounted cash flow analysis. As such, a $36,076 non-cash impairment charge was recorded to write-down the impacted tradenames to net realizable value. Other than the impairment charges discussed above, the Company found no other impairment when performing the required annual impairment tests for goodwill and other indefinite-lived intangible assets for fiscal years 2015, 2014 and 2013. There can be no assurance that future impairment tests will not result in a charge to earnings. |
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block] | Impairment of Long-Lived Assets The Company periodically evaluates the carrying value of long-lived assets (excluding goodwill and indefinite-lived tradenames). Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. If the sum of the expected future undiscounted cash flows is less than the carrying amount of an asset, a loss is recognized for the difference between the fair value and carrying value of the asset. |
Income Tax, Policy [Policy Text Block] | Income Taxes The Company is a C Corporation and therefore accounts for income taxes pursuant to the liability method. Accordingly, the current or deferred tax consequences of a transaction are measured by applying the provision of enacted tax laws to determine the amount of taxes payable currently or in future years. Deferred income taxes are provided for temporary differences between the income tax bases of assets and liabilities and their carrying amounts for financial reporting purposes. In assessing the realizability of deferred tax assets, the Company considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the years in which those temporary differences become deductible. The Company considers taxable income in prior carryback years, the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies, as appropriate, in making this assessment. |
Revenue Recognition, Policy [Policy Text Block] | Revenue Recognition The Company provides for certain estimated sales programs, discounts and incentive expenses which are recognized as a reduction of sales. |
Shipping and Handling Cost, Policy [Policy Text Block] | Shipping and Handling Costs Shipping and handling costs billed to customers are included in net sales, and the related costs are included in cost of goods sold in the consolidated statements of comprehensive income. |
Advertising Costs, Policy [Policy Text Block] | Advertising and Co-Op Advertising Expenditures for advertising, included in selling and service expenses in the consolidated statements of comprehensive income, are expensed as incurred. Total expenditures for advertising were $39,258, $32,352, and $19,910 for the years ended December 31, 2015, 2014, and 2013, respectively. |
Research and Development Expense, Policy [Policy Text Block] | Research and Development The Company expenses research and development costs as incurred. Total expenditures incurred for research and development were $32,922, $31,494, and $29,271 for the years ended December 31, 2015, 2014 and 2013, respectively. |
Foreign Currency Transactions and Translations Policy [Policy Text Block] | Foreign Currency Translation and Transactions Balance sheet amounts for non-U.S. Dollar functional currency businesses are translated into dollars at the rates of exchange in effect at fiscal year-end. Income and expenses incurred in a foreign currency are translated at the average rates of exchange in effect during the year. The related translation adjustments are made directly to accumulated other comprehensive loss, a component of stockholders’ equity, in the consolidated balance sheets. Gains and losses from foreign currency transactions are recognized as incurred in the consolidated statements of comprehensive income. |
Fair Value of Financial Instruments, Policy [Policy Text Block] | Fair Value of Financial Instruments The Financial Accounting Standards Board (FASB) Accounting Standards Update (ASC) 820-10, Fair Value Measurement , The Company believes the carrying amount of its financial instruments (cash and cash equivalents, accounts receivable, accounts payable, accrued liabilities, short-term borrowings and ABL facility borrowings), excluding Term Loan borrowings, approximates the fair value of these instruments based upon their short-term nature. The fair value of Term Loan borrowings, which have an aggregate carrying value of $937,060 was approximately $918,319 (Level 2) at December 31, 2015, as calculated based on independent valuations whose inputs and significant value drivers are observable. For the fair value of the assets and liabilities measured on a recurring basis, see the fair value table in Note 4, “Derivative Instruments and Hedging Activities,” to the consolidated financial statements. The fair value of all derivative contracts is classified as Level 2. The valuation techniques used to measure the fair value of derivative contracts, all of which have counterparties with high credit ratings, were based on quoted market prices or model driven valuations using significant inputs derived from or corroborated by observable market data. The fair value of derivative contracts considers the Company’s credit risk in accordance with ASC 820-10. |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates The preparation of the consolidated financial statements in conformity with U.S. generally accepted accounting principles (U.S. 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. |
Derivatives, Policy [Policy Text Block] | Derivative Instruments and Hedging Activities The Company records all derivatives in accordance with ASC 815, Derivatives and Hedging |
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | Stock-Based Compensation Stock-based compensation expense, including stock options and restricted stock awards, is generally recognized on a straight-line basis over the vesting period based on the fair value of awards which are expected to vest. The fair value of all share-based awards is estimated on the date of grant. |
New Accounting Pronouncements, Policy [Policy Text Block] | New Accounting Pronouncements In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers In April 2015, the FASB issued ASU 2015-03, Interest – Imputation of Interest: Simplifying the Presentation of Debt Issuance Costs In September 2015, the FASB issued ASU 2015-16, Business Combinations: Simplifying the Accounting for Measurement Period Adjustments In November 2015, the FASB issued ASU 2015-17, I ncome Taxes: Balance Sheet Classification of Deferred Taxes There are several other new accounting pronouncements issued by the FASB. Each of these pronouncements, as applicable, has been or will be adopted by the Company. Management does not believe any of these accounting pronouncements has had or will have a material impact on the Company’s consolidated financial statements. |
Note 2 - Significant Accounti29
Note 2 - Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Notes Tables | |
Property Plant and Equipment, Estimated Useful Lives [Table Text Block] | Land improvements 10 – 15 Buildings and improvements 10 – 40 Machinery and equipment 5 – 20 Dies and tools 3 – 10 Vehicles 3 – 5 Office equipment and systems 3 – 15 Leasehold improvements 7 – 20 |
Note 4 - Derivative Instrumen30
Note 4 - Derivative Instruments and Hedging Activities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Notes Tables | |
Schedule Of Derivative Assets (Liabilities) at Fair Value [Table Text Block] | December 31 , 5 December 31, 4 Commodity contracts $ (400 ) $ (515 ) Foreign currency contracts (171 ) (149 ) Interest rate swaps (2,618 ) (1,045 ) |
Note 5 - Accumulated Other Co31
Note 5 - Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Notes Tables | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | Foreign Currency Translation Adjustments Defined Benefit Pension Plan Unrealized Loss on Cash Flow Hedges Total Beginning Balance – January 1, 2015 $ (1,878 ) $ (13,243 ) $ (646 ) $ (15,767 ) Other comprehensive income (loss) before reclassifications (7,624 ) 1,105 (1) (965 )(2) (7,484 ) Amounts reclassified from AOCL - 776 (3) - 776 Net current-period other comprehensive income (loss) (7,624 ) 1,881 (965 ) (6,708 ) Ending Balance – December 31, 2015 $ (9,502 ) $ (11,362 ) $ (1,611 ) $ (22,475 ) Foreign Currency Translation Adjustments Defined Benefit Pension Plan Unrealized Gain (Loss) on Cash Flow Hedges Total Beginning Balance – January 1, 2014 $ 1,204 $ (4,393 ) $ 774 $ (2,415 ) Other comprehensive loss before reclassifications (3,082 ) (8,922 )(4) (1,420 )(5) (13,424 ) Amounts reclassified from AOCL - 72 (6) - 72 Net current-period other comprehensive loss (3,082 ) (8,850 ) (1,420 ) (13,352 ) Ending Balance – December 31, 2014 $ (1,878 ) $ (13,243 ) $ (646 ) $ (15,767 ) |
Note 6 - Segment Reporting (Tab
Note 6 - Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Notes Tables | |
Revenue from External Customers by Products and Services [Table Text Block] | Year Ended December 31, 2015 2014 2013 Residential products $ 673,764 $ 722,206 $ 843,727 Commercial & industrial products 548,440 652,216 569,890 Other 95,095 86,497 72,148 Total $ 1,317,299 $ 1,460,919 $ 1,485,765 |
Note 7 - Balance Sheet Details
Note 7 - Balance Sheet Details (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | December 31, 2015 2014 Raw material $ 188,354 $ 184,407 Work-in-process 2,856 8,798 Finished goods 144,747 135,567 Reserves for excess and obsolete (10,582 ) (9,387 ) Total $ 325,375 $ 319,385 |
Property, Plant and Equipment [Table Text Block] | December 31, 2015 2014 Land and improvements $ 8,553 $ 7,803 Buildings and improvements 104,774 102,254 Machinery and equipment 72,280 65,240 Dies and tools 20,066 16,897 Vehicles 1,244 1,383 Office equipment and systems 29,395 21,990 Leasehold improvements 3,338 2,535 Construction in progress 30,482 20,120 Gross property and equipment 270,132 238,222 Accumulated depreciation (85,919 ) (69,401 ) Total $ 184,213 $ 168,821 |
Note 8 - Goodwill and Intangi34
Note 8 - Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Notes Tables | |
Schedule of Goodwill [Table Text Block] | Year Ended December 31, 2015 Year Ended December 31, 2014 Gross Accumulated Impairment Net Gross Accumulated Impairment Net Balance at beginning of year $ 1,138,758 $ (503,193 ) $ 635,565 $ 1,111,480 $ (503,193 ) $ 608,287 Acquisitions of businesses, net 38,765 - $ 38,765 27,278 - $ 27,278 Impairment - (4,611 ) (4,611 ) - - - Balance at end of year $ 1,177,523 $ (507,804 ) $ 669,719 $ 1,138,758 $ (503,193 ) $ 635,565 |
Schedule Of Intangible Assets [Table Text Block] | Weighted Average December 31, 2015 December 31, 2014 Amortization Years Cost Accumulated Amortization Amortized Cost Cost Accumulated Amortization Amortized Cost Finite-lived intangible assets: Tradenames 7 $ 43,252 $ (10,516 ) $ 32,736 $ 8,775 $ (8,775 ) $ - Customer lists 9 314,600 (275,287 ) 39,313 304,180 (263,178 ) 41,002 Patents 14 126,491 (72,719 ) 53,772 121,341 (64,447 ) 56,894 Unpatented technology 15 13,169 (11,628 ) 1,541 13,169 (10,435 ) 2,734 Software 9 1,046 (1,042 ) 4 1,046 (1,037 ) 9 Non-compete/other 9 1,731 (508 ) 1,223 1,961 (406 ) 1,555 Total finite-lived intangible assets $ 500,289 $ (371,700 ) $ 128,589 $ 450,472 $ (348,278 ) $ 102,194 Indefinite-lived tradenames 128,321 - 128,321 182,684 - 182,684 Total intangible assets $ 628,610 $ (371,700 ) $ 256,910 $ 633,156 $ (348,278 ) $ 284,878 |
Note 9 - Product Warranty Obl35
Note 9 - Product Warranty Obligations (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Notes Tables | |
Schedule of Product Warranty Liability [Table Text Block] | Year Ended December 31, 2015 2014 2013 Balance at beginning of year $ 30,909 $ 33,734 $ 36,111 Product warranty reserve assumed in acquisition 351 360 600 Payments (21,686 ) (20,975 ) (19,084 ) Provision for warranties issued 20,823 22,890 33,707 Changes in estimates for pre-existing warranties (200 ) (5,100 ) (17,600 ) Balance at end of year $ 30,197 $ 30,909 $ 33,734 Year Ended December 31, 2015 2014 2013 Balance at beginning of year $ 27,193 $ 23,092 $ 13,474 Deferred revenue contracts assumed in acquisition 291 - - Deferred revenue contracts sold 5,978 7,343 11,998 Amortization of deferred revenue contracts (4,501 ) (3,242 ) (2,380 ) Balance at end of year $ 28,961 $ 27,193 $ 23,092 |
Product Warranty Obligations Included In Consolidated Balance Sheet [Table Text Block] | December 31, 201 5 201 4 Product warranty liability Current portion - other accrued liabilities $ 21,726 $ 24,143 Long-term portion - other long-term liabilities 8,471 6,766 Total $ 30,197 $ 30,909 Deferred revenue related to extended warranty Current portion - other accrued liabilities $ 6,026 $ 4,519 Long-term portion - other long-term liabilities 22,935 22,674 Total $ 28,961 $ 27,193 |
Note 10 - Credit Agreements (Ta
Note 10 - Credit Agreements (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Notes Tables | |
Schedule of Short-term Debt [Table Text Block] | December 31, 201 5 201 4 ABL facility $ - $ - Other lines of credit 8,594 5,359 Total $ 8,594 $ 5,359 |
Schedule of Long-term Debt Instruments [Table Text Block] | December 31, 2015 2014 Term loan $ 954,000 $ 1,104,000 Original issue discount (16,940 ) (23,861 ) ABL facility 100,000 - Capital lease obligation 1,694 2,059 Other 12,000 460 Total 1,050,754 1,082,658 Less: current portion of debt 500 389 Less: current portion of capital lease obligation 157 168 Total $ 1,050,097 $ 1,082,101 |
Schedule of Maturities of Long-term Debt [Table Text Block] | Year 2016 $ 657 2017 11,666 2018 172 2019 177 After 2019 1,055,022 Total $ 1,067,694 |
Note 12 - Earnings Per Share (T
Note 12 - Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Year Ended December 31, 2015 2014 2013 Net income (numerator) $ 77,747 $ 174,613 $ 174,539 Weighted average shares (denominator) Basic 68,096,051 68,538,248 68,081,632 Dilutive effect of stock compensation awards (1) 1,104,246 1,632,796 1,585,897 Diluted 69,200,297 70,171,044 69,667,529 Net income per share Basic $ 1.14 $ 2.55 $ 2.56 Diluted $ 1.12 $ 2.49 $ 2.51 |
Note 13 - Income Taxes (Tables)
Note 13 - Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Notes Tables | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | Year Ended December 31, 2015 2014 2013 Current: Federal $ 13,614 $ 38,161 $ 48,287 State 1,966 1,645 5,648 Foreign 3,588 5,701 2,214 19,168 45,507 56,149 Deferred: Federal $ 31,869 $ 42,474 $ 42,003 State 1,387 (3,134 ) 5,523 Foreign (7,326 ) (1,462 ) 167 25,930 37,878 47,693 Change in valuation allowance 138 364 335 Provision for income taxes $ 45,236 $ 83,749 $ 104,177 |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | December 31, 2015 2014 Deferred tax assets: Goodwill and intangible assets $ - $ 23,624 Accrued expenses 18,982 18,191 Deferred revenue 9,389 7,945 Inventories 9,772 9,177 Pension obligations 7,684 8,738 Stock-based compensation 7,974 8,628 Operating loss and credit carryforwards 15,677 10,047 Other 2,842 1,428 Valuation allowance (1,523 ) (1,385 ) Total deferred tax assets 70,797 86,393 Deferred tax liabilitites: Goodwill and intangible assets 12,455 - Depreciation 19,507 18,535 Debt refinancing costs 7,732 10,925 Prepaid expenses 1,241 1,032 Total deferred tax liabilities 40,935 30,492 Net deferred tax assets $ 29,862 $ 55,901 |
Net Current and Noncurrent Components of Deferred Taxes [Table Text Block] | December 31, 2015 2014 Net current deferred tax assets $ 29,355 $ 22,841 Net long-term deferred tax assets 8,196 47,894 Net long-term deferred tax liabilitites (6,166 ) (13,449 ) Valuation allowance (1,523 ) (1,385 ) Net deferred tax assets $ 29,862 $ 55,901 |
Schedule of Unrecognized Tax Benefits Roll Forward [Table Text Block] | December 31, 2015 2014 Unrecognized tax benefit, beginning of period $ 6,394 $ - Increase in unrecognized tax benefit for positions taken in current period 845 6,394 Unrecognized tax benefit, end of period $ 7,239 $ 6,394 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | Year Ended December 31, 2015 2014 2013 U.S. stautory rate 35.0 % 35.0 % 35.0 % State taxes 4.1 3.1 3.7 Valuation allowance 0.6 0.2 0.2 Research and development credits (2.3 ) (5.0 ) (0.6 ) Other (0.6 ) (0.9 ) (0.9 ) Effective tax rate 36.8 % 32.4 % 37.4 % |
Note 14 - Benefit Plans (Tables
Note 14 - Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Net periodic Benefit Costs [Member] | |
Notes Tables | |
Schedule of Assumptions Used [Table Text Block] | Y ear E nded December 31, 201 5 201 4 201 3 Discount rate 3.99 % 5.01 % 4.14 % Expected long-term rate of return on plan assets 6.75 % 6.88 % 6.95 % Rate of compensation increase (1) n/a n/a n/a |
Schedule of Defined Benefit Plans Disclosures [Table Text Block] | Year Ended December 31, 2015 2014 Accumulated benefit obligation at end of period $ 63,894 $ 68,376 Change in projected benefit obligation Projected benefit obligation at beginning of period $ 68,376 $ 52,825 Interest cost 2,681 2,591 Net actuarial loss (gain) (5,254 ) 14,791 Benefits paid (1,909 ) (1,831 ) Projected benefit obligation at end of period $ 63,894 $ 68,376 Change in plan assets Fair value of plan assets at beginning of period $ 45,452 $ 42,440 Actual return (loss) on plan assets (384 ) 3,110 Company contributions 826 1,733 Benefits paid (1,909 ) (1,831 ) Fair value of plan assets at end of period $ 43,985 $ 45,452 Funded status: accrued pension liability included in other long-term liabilities $ (19,909 ) $ (22,924 ) Amounts recognized in accumulated other comprehensive loss Net actuarial loss $ (11,362 ) $ (13,243 ) |
Schedule of Net Benefit Costs [Table Text Block] | Year E nded December 31, 201 5 201 4 201 3 Components of net periodic pension (benefit) cost: Interest cost $ 2,681 $ 2,591 $ 2,423 Expected return on plan assets (3,041 ) (2,933 ) (2,520 ) Amortization of net loss 1,228 106 1,108 Net periodic pension (benefit) cost $ 868 $ (236 ) $ 1,011 |
Schedule of Assumptions Used [Table Text Block] | December 31, 2015 2014 Discount rate – salaried pension plan 4.36 % 3.97 % Discount rate – hourly pension plan 4.39 % 3.99 % Rate of compensation increase (1) n/a n/a |
Schedule of Allocation of Plan Assets [Table Text Block] | December 31, 2015 December 31, 2014 Asset Category Target Dollars % Dollars % Fixed Income 20% $ 8,571 19 % $ 7,400 16 % Domestic equity 49% 20,479 47 % 24,373 54 % International equity 21% 9,687 22 % 8,869 19 % Real estate 10% 5,248 12 % 4,810 11 % Total 100% $ 43,985 100 % $ 45,452 100 % |
Schedule of Fair Value of Plan Assets [Table Text Block] | Total Quoted Prices in Active Markets for Identical A sset (L evel 1) Significant Observable I nputs (L evel 2) Significant Unobservable I nputs (L evel 3) Mutual funds $ 40,310 $ 40,310 $ – $ – Other investments 3,675 – – 3,675 Total $ 43,985 $ 40,310 $ – $ 3,675 Total Quoted Prices in Active Markets for Identical A sset (L evel 1) Significant O b servable I nputs (L evel 2) Significant Unobservable I nputs (L evel 3) Mutual funds $ 42,267 $ 42,267 $ – $ – Other investments 3,185 – – 3,185 Total $ 45,452 $ 42,267 $ – $ 3,185 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] | 2015 2014 Balance at beginning of period $ 3,185 $ – Purchases 408 3,100 Realized gains 82 85 Balance at end of period $ 3,675 $ 3,185 |
Schedule of Expected Benefit Payments [Table Text Block] | Year 2016 $ 2,052 2017 2,231 2018 2,340 2019 2,424 2020 2,552 2021 – 2025 15,238 |
Note 15 - Share Plans (Tables)
Note 15 - Share Plans (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Notes Tables | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | 201 5 201 4 201 3 Weighted average grant date fair value $ 19.07 $ 26.35 $ 16.30 Assumptions: Expected stock price volatility 41 % 45 % 47 % Risk free interest rate 1.72 % 1.90 % 1.21 % Expected annual dividend per share $ - $ - $ - Expected life of options (years) 6.25 6.25 6.25 |
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | Number of Options Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term (in years) Aggregate Intrinsic Value ($ in thousands) Outstanding as of December 31, 2012 3,440,042 $ 8.44 9.5 $ 87,001 Granted 253,857 35.04 Exercised (703,326 ) 6.05 Expired (1,625 ) 20.94 Forfeited (51,647 ) 17.02 Outstanding as of December 31, 2013 2,937,301 5.74 9.5 $ 148,369 Granted 187,189 57.21 Exercised (549,282 ) 3.44 Expired (259 ) 15.94 Forfeited (32,810 ) 12.68 Outstanding as of December 31, 2014 2,542,139 9.94 8.5 $ 96,518 Granted 287,165 45.18 Exercised (604,088 ) 3.79 Expired (6,409 ) 50.11 Forfeited (90,793 ) 37.27 Outstanding as of December 31, 2015 2,128,014 15.15 7.7 $ 40,271 Exercisable as of December 31, 2015 1,574,790 6.08 7.5 $ 39,072 |
Schedule of Share-based Compensation, Restricted Stock Units Award Activity [Table Text Block] | Shares Weighted-Average Grant-Date Fair Value Non-vested as of December 31, 2012 665,071 $ 17.75 Granted 112,494 37.82 Vested (450,537 ) 14.21 Forfeited (22,622 ) 25.36 Non-vested as of December 31, 2013 304,406 29.68 Granted 115,473 54.35 Vested (105,123 ) 28.31 Forfeited (47,472 ) 42.31 Non-vested as of December 31, 2014 267,284 38.72 Granted 193,117 41.31 Vested (183,362 ) 32.56 Forfeited (33,999 ) 47.77 Non-vested as of December 31, 2015 243,040 44.16 |
Note 16 - Commitments and Con41
Note 16 - Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Notes Tables | |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | Year Amount 2016 $ 3,561 2017 3,072 2018 3,033 2019 2,153 2020 1,809 After 2020 5,489 Total $ 19,117 |
Note 18 - Quarterly Financial42
Note 18 - Quarterly Financial Information (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Notes Tables | |
Schedule of Quarterly Financial Information [Table Text Block] | Quarters Ended 201 5 Q1 Q2 Q3 Q4 Net sales $ 311,818 $ 288,360 $ 359,291 $ 357,830 Gross profit 102,603 95,897 130,326 131,124 Operating income 44,911 39,467 67,867 27,316 Net income 19,685 14,844 34,036 9,182 Net income per common share, basic: $ 0.29 $ 0.22 $ 0.50 $ 0.14 Net income per common share, diluted: $ 0.28 $ 0.21 $ 0.49 $ 0.14 Quarters Ended 201 4 Q1 Q2 Q3 Q4 Net sales $ 342,008 $ 362,609 $ 352,305 $ 403,997 Gross profit 119,514 128,012 130,283 138,410 Operating income 65,306 78,160 70,794 79,115 Net income 34,701 54,025 36,497 49,390 Net income per common share, basic: $ 0.51 $ 0.79 $ 0.53 $ 0.72 Net income per common share, diluted: $ 0.50 $ 0.77 $ 0.52 $ 0.70 |
Note 19 - Valuation and Quali43
Note 19 - Valuation and Qualifying Accounts (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Notes Tables | |
Valuation and Qualifying Accounts [Table Text Block] | Balance at Beginning of Year Reserves Assumed in Acquisition Additions Charged to Earnings Charges to Reserve, Net (1) Balance at End of Year Year ended December 31, 2015 Allowance for doubtful accounts $ 2,275 $ 63 $ 481 $ (325 ) $ 2,494 Reserves for inventory 9,387 614 3,739 (3,158 ) 10,582 Valuation of deferred tax assets 1,385 - 138 – 1,523 Year ended December 31, 2014 Allowance for doubtful accounts $ 2,658 $ 209 $ 672 $ (1,264 ) $ 2,275 Reserves for inventory 6,558 2,282 2,797 (2,250 ) 9,387 Valuation of deferred tax assets 1,021 - 364 – 1,385 Year ended December 31, 2013 Allowance for doubtful accounts $ 1,166 $ 496 $ 1,037 $ (41 ) $ 2,658 Reserves for inventory 6,999 1,131 72 (1,644 ) 6,558 Valuation of deferred tax assets 806 (120 ) 335 – 1,021 |
Note 2 - Significant Accounti44
Note 2 - Significant Accounting Policies (Details Textual) | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2015USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Accounts Receivable [Member] | Customer Concentration Risk [Member] | ||||
Number of Major Customers | 1 | 1 | ||
Concentration Risk, Percentage | 11.00% | 9.00% | ||
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | ||||
Number of Major Customers | 0 | 0 | 0 | |
Percentage of Revenue Considered for Accounting of Major Customer | 7.00% | 8.00% | 6.00% | |
Ottomotores [Member] | ||||
Financial Assumptions Including Sales Growth - Terminal Growth Rate | 3.00% | |||
Financial Assumptions Including Sales Growth - Discount Rate | 15.70% | |||
Fair Value, Inputs, Level 2 [Member] | ||||
Debt Instrument, Fair Value Disclosure | $ 918,319,000 | $ 918,319,000 | ||
Amortization of Financing Costs and Debt Discount Premium | 5,429,000 | $ 6,615,000 | $ 4,772,000 | |
Deferred Costs Amortization Expense, Next Twelve Months | 5,355,000 | 5,355,000 | ||
Deferred Costs Amortization Expense, Year Two | 6,783,000 | 6,783,000 | ||
Deferred Costs Amortization Expense, Year Three | 7,048,000 | 7,048,000 | ||
Deferred Costs Amortization Expense, Year Four | 7,323,000 | 7,323,000 | ||
Deferred Costs Amortization Expense, Year Five | 3,134,000 | 3,134,000 | ||
Goodwill, Impairment Loss | 4,611,000 | 4,611,000 | ||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | 36,076,000 | |||
Advertising Expense | 39,258,000 | $ 32,352,000 | 19,910,000 | |
Research and Development Expense | 32,922,000 | $ 31,494,000 | $ 29,271,000 | |
Long-term Debt | $ 937,060,000 | $ 937,060,000 |
Note 2 - Property and Equipment
Note 2 - Property and Equipment Estimated Useful Lives (Details) | 12 Months Ended |
Dec. 31, 2015 | |
Land Improvements [Member] | Minimum [Member] | |
Property and Equipment Estimated Useful Lives | 10 years |
Land Improvements [Member] | Maximum [Member] | |
Property and Equipment Estimated Useful Lives | 15 years |
Building Improvements [Member] | Minimum [Member] | |
Property and Equipment Estimated Useful Lives | 10 years |
Building Improvements [Member] | Maximum [Member] | |
Property and Equipment Estimated Useful Lives | 40 years |
Machinery and Equipment [Member] | Minimum [Member] | |
Property and Equipment Estimated Useful Lives | 5 years |
Machinery and Equipment [Member] | Maximum [Member] | |
Property and Equipment Estimated Useful Lives | 20 years |
Dies and Tools [Member] | Minimum [Member] | |
Property and Equipment Estimated Useful Lives | 3 years |
Dies and Tools [Member] | Maximum [Member] | |
Property and Equipment Estimated Useful Lives | 10 years |
Vehicles [Member] | Minimum [Member] | |
Property and Equipment Estimated Useful Lives | 3 years |
Vehicles [Member] | Maximum [Member] | |
Property and Equipment Estimated Useful Lives | 5 years |
Office Equipment [Member] | Minimum [Member] | |
Property and Equipment Estimated Useful Lives | 3 years |
Office Equipment [Member] | Maximum [Member] | |
Property and Equipment Estimated Useful Lives | 15 years |
Leasehold Improvements [Member] | Minimum [Member] | |
Property and Equipment Estimated Useful Lives | 7 years |
Leasehold Improvements [Member] | Maximum [Member] | |
Property and Equipment Estimated Useful Lives | 20 years |
Note 3 - Acquisitions (Details
Note 3 - Acquisitions (Details Textual) | Aug. 01, 2015USD ($) | Oct. 01, 2014USD ($) | Aug. 01, 2013USD ($) | Dec. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) |
CHP [Member] | |||||||||
Payments to Acquire Businesses, Net of Cash Acquired | $ 74,570,000 | ||||||||
Business Acquisition, Purchase Price Allocation, Intangible Assets Including Goodwill | 81,726,000 | ||||||||
Goodwill | $ 30,076,000 | ||||||||
Increase (Decrease) in Intangible Assets, Non-current | $ (6,552,000) | ||||||||
Goodwill, Period Increase (Decrease) | 6,208,000 | ||||||||
Noncash or Part Noncash Acquisition, Debt Assumed | 12,000,000 | ||||||||
MAC Inc. [Member] | |||||||||
Payments to Acquire Businesses, Net of Cash Acquired | $ 55,035,000 | ||||||||
Business Acquisition, Purchase Price Allocation, Intangible Assets Including Goodwill | 49,378,000 | ||||||||
Goodwill | $ 25,898,000 | ||||||||
Increase (Decrease) in Intangible Assets, Non-current | $ (4,229,000) | ||||||||
Goodwill, Period Increase (Decrease) | $ 2,481,000 | ||||||||
Tower Light [Member] | |||||||||
Payments to Acquire Businesses, Net of Cash Acquired | $ 80,239,000 | ||||||||
Business Acquisition, Purchase Price Allocation, Intangible Assets Including Goodwill | 67,900,000 | ||||||||
Goodwill | 38,400,000 | ||||||||
Goodwill, Period Increase (Decrease) | $ 9,328,000 | ||||||||
Business Combination, Consideration Transferred | $ 85,812,000 | ||||||||
Number of Countries in Which Subsidiary of Entity Has Distribution Network | 50 | ||||||||
Restricted Cash and Cash Equivalents | $ 6,645,000 | ||||||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Consideration Transferred | $ 7,641,000 | ||||||||
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability | (4,877,000) | ||||||||
Payments to Acquire Businesses, Net of Cash Acquired | $ 73,782,000 | 61,196,000 | $ 116,113,000 | ||||||
Goodwill | $ 669,719,000 | $ 608,287,000 | $ 669,719,000 | 635,565,000 | $ 608,287,000 | ||||
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability | $ (4,877,000) |
Note 4 - Derivative Instrumen47
Note 4 - Derivative Instruments and Hedging Activities (Details Textual) $ in Thousands | Oct. 23, 2013 | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | May. 30, 2012 |
Foreign Exchange Contract [Member] | Maximum [Member] | |||||
Derivative, Higher Remaining Maturity Range | 1 year | ||||
Foreign Exchange Contract [Member] | Not Designated as Hedging Instrument [Member] | Cost of Sales [Member] | |||||
Derivative, Gain (Loss) on Derivative, Net | $ (624) | $ (149) | $ (56) | ||
Foreign Exchange Contract [Member] | |||||
Derivative, Number of Instruments Held | 6 | 6 | |||
Commodity Contract [Member] | Maximum [Member] | |||||
Derivative, Higher Remaining Maturity Range | 1 year 180 days | ||||
Commodity Contract [Member] | Not Designated as Hedging Instrument [Member] | Cost of Sales [Member] | |||||
Derivative, Gain (Loss) on Derivative, Net | $ (1,909) | $ (629) | (605) | ||
Commodity Contract [Member] | |||||
Derivative, Number of Instruments Held | 1 | 3 | |||
Interest Rate Swap [Member] | Interest Expense [Member] | |||||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | (2,381) | ||||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | 2,973 | ||||
Interest Rate Swap [Member] | |||||
Derivative, Number of Instruments Held | 4 | ||||
Number of New Contracts Entered | 2 | ||||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net | $ (965) | $ (1,420) | 774 | ||
Commodity and Foreign Currency Contracts [Member] | |||||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | (2,533) | (778) | $ (661) | ||
Derivative Assets (Liabilities), Net Fair Value of Derivative Contracts, Excluding Impact of Credit Risk | $ (3,248) | $ (1,727) |
Note 4 - Fair Value of Derivati
Note 4 - Fair Value of Derivatives (Details) - Fair Value, Inputs, Level 2 [Member] - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Commodity Contract [Member] | ||
Fair Value of Derivates | $ (400) | $ (515) |
Foreign Exchange Contract [Member] | ||
Fair Value of Derivates | (171) | (149) |
Interest Rate Swap [Member] | ||
Fair Value of Derivates | $ (2,618) | $ (1,045) |
Note 5 - Accumulated Other Co49
Note 5 - Accumulated Other Comprehensive Loss (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | ||
OCI, before Reclassifications, before Tax, Attributable to Parent | $ 1,829 | $ (14,614) |
Other Comprehensive Income (Loss) before Reclassifications, Tax | 724 | (5,692) |
Reclassification from AOCI, Current Period, before Tax, Attributable to Parent | (1,228) | (106) |
Reclassification from AOCI, Current Period, Tax | (452) | (34) |
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | ||
OCI, before Reclassifications, before Tax, Attributable to Parent | (1,574) | (2,279) |
Other Comprehensive Income (Loss) before Reclassifications, Tax | $ (609) | $ (859) |
Note 5 - Disclosure of Changes
Note 5 - Disclosure of Changes in Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |||
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | |||||
Beginning Balance | $ (1,878) | $ 1,204 | |||
Other comprehensive income (loss) before reclassifications | $ (7,624) | $ (3,082) | |||
Amounts reclassified from AOCL | |||||
Net current-period other comprehensive income (loss) | $ (7,624) | $ (3,082) | $ 1,238 | ||
Ending Balance | (9,502) | (1,878) | 1,204 | ||
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | |||||
Beginning Balance | (13,243) | (4,393) | |||
Other comprehensive income (loss) before reclassifications | 1,105 | [1] | (8,922) | [2] | |
Amounts reclassified from AOCL | 776 | [3] | 72 | [4] | |
Net current-period other comprehensive income (loss) | 1,881 | (8,850) | 7,688 | ||
Ending Balance | (11,362) | (13,243) | (4,393) | ||
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | |||||
Beginning Balance | (646) | 774 | |||
Other comprehensive income (loss) before reclassifications | $ (965) | [5] | $ (1,420) | [6] | |
Amounts reclassified from AOCL | |||||
Net current-period other comprehensive income (loss) | $ (965) | $ (1,420) | 774 | ||
Ending Balance | (1,611) | (646) | 774 | ||
Beginning Balance | (15,767) | (2,415) | |||
Other comprehensive income (loss) before reclassifications | (7,484) | (13,424) | |||
Amounts reclassified from AOCL | 776 | 72 | |||
Net current-period other comprehensive income (loss) | (6,708) | (13,352) | 12,081 | ||
Ending Balance | $ (22,475) | $ (15,767) | $ (2,415) | ||
[1] | Represents unrecognized actuarial gains of $1,829, net of tax effect of $(724), included in the computation of net periodic pension cost for the year ended December 31, 2015. See Note 14, “Benefit Plans,” to the consolidated financial statements for additional information. | ||||
[2] | Represents unrecognized actuarial losses of $(14,614), net of tax benefit of $5,692, included in the computation of net periodic pension cost for the year ended December 31, 2014. See Note 14, “Benefit Plans,” to the consolidated financial statements for additional information. | ||||
[3] | Represents actuarial losses of $1,228, net of tax effect of $(452), amortized to net periodic pension cost for the year ended December 31, 2015. See Note 14, “Benefit Plans,” to the consolidated financial statements for additional information. | ||||
[4] | Represents actuarial losses of $106, net of tax effect of $(34), amortized to net periodic pension cost for the year ended December 31, 2014. See Note 14, “Benefit Plans,” to the consolidated financial statements for additional information. | ||||
[5] | Represents unrealized losses of $(1,574), net of tax benefit of $609 for the year ended December 31, 2015. | ||||
[6] | Represents unrealized losses of $(2,279), net of tax benefit of $859 for the year ended December 31, 2014. |
Note 6 - Segment Reporting (Det
Note 6 - Segment Reporting (Details Textual) - Geographic Concentration Risk [Member] - UNITED STATES | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Sales Revenue, Net [Member] | |||
Concentration Risk, Percentage | 85.00% | 84.00% | 88.00% |
Net Assets, Geographic Area [Member] | |||
Concentration Risk, Percentage | 93.00% | 91.00% |
Note 6 - Net Sales by Segment (
Note 6 - Net Sales by Segment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Residential Power Products [Member] | |||
Net sales | $ 673,764 | $ 722,206 | $ 843,727 |
Commercial and Industrial Power Products [Member] | |||
Net sales | 548,440 | 652,216 | 569,890 |
Other Products and Services [Member] | |||
Net sales | 95,095 | 86,497 | 72,148 |
Net sales | $ 1,317,299 | $ 1,460,919 | $ 1,485,765 |
Note 7 - Balance Sheet Detail53
Note 7 - Balance Sheet Details (Details Textual) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Other Inventory, Materials, Supplies and Merchandise under Consignment, Gross | $ 11,253 | $ 12,497 |
Note 7 - Inventories (Details)
Note 7 - Inventories (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Raw material | $ 188,354 | $ 184,407 |
Work-in-process | 2,856 | 8,798 |
Finished goods | 144,747 | 135,567 |
Reserves for excess and obsolete | (10,582) | (9,387) |
Total | $ 325,375 | $ 319,385 |
Note 7 - Property and Equipment
Note 7 - Property and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Land and Land Improvements [Member] | ||
Property and equipment, gross | $ 8,553 | $ 7,803 |
Building and Building Improvements [Member] | ||
Property and equipment, gross | 104,774 | 102,254 |
Machinery and Equipment [Member] | ||
Property and equipment, gross | 72,280 | 65,240 |
Dies and Tools [Member] | ||
Property and equipment, gross | 20,066 | 16,897 |
Vehicles [Member] | ||
Property and equipment, gross | 1,244 | 1,383 |
Office Equipment [Member] | ||
Property and equipment, gross | 29,395 | 21,990 |
Leasehold Improvements [Member] | ||
Property and equipment, gross | 3,338 | 2,535 |
Construction in Progress [Member] | ||
Property and equipment, gross | 30,482 | 20,120 |
Property and equipment, gross | 270,132 | 238,222 |
Accumulated depreciation | (85,919) | (69,401) |
Total | $ 184,213 | $ 168,821 |
Note 8 - Goodwill and Intangi56
Note 8 - Goodwill and Intangible Assets (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Amortization of Intangible Assets | $ 23,591 | $ 21,024 | $ 25,819 |
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | 29,184 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 25,832 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 15,535 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 13,835 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Five | $ 13,762 |
Note 8 - Carrying Amount of Goo
Note 8 - Carrying Amount of Goodwill (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Balance at | $ 1,177,523,000 | $ 1,177,523,000 | $ 1,138,758,000 | $ 1,111,480,000 |
Balance at | (507,804,000) | (507,804,000) | (503,193,000) | (503,193,000) |
Goodwill | 669,719,000 | 669,719,000 | 635,565,000 | $ 608,287,000 |
Acquisitions of businesses, net | 38,765,000 | 27,278,000 | ||
Acquisitions of businesses, net | 0 | 0 | ||
Acquisitions of businesses, net | 38,765,000 | $ 27,278,000 | ||
Impairment | $ (4,611,000) | $ (4,611,000) |
Note 8 - Summary of Intangible
Note 8 - Summary of Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Trade Names [Member] | ||
Finite lived intangible assets, Useful life | 7 years | |
Finite lived intangible assets, Cost | $ 43,252 | $ 8,775 |
Finite lived intangible assets, Accumulated Amortization | (10,516) | $ (8,775) |
Finite lived intangible assets, Amortized Cost | $ 32,736 | |
Customer Lists [Member] | ||
Finite lived intangible assets, Useful life | 9 years | |
Finite lived intangible assets, Cost | $ 314,600 | $ 304,180 |
Finite lived intangible assets, Accumulated Amortization | (275,287) | (263,178) |
Finite lived intangible assets, Amortized Cost | $ 39,313 | 41,002 |
Patents [Member] | ||
Finite lived intangible assets, Useful life | 14 years | |
Finite lived intangible assets, Cost | $ 126,491 | 121,341 |
Finite lived intangible assets, Accumulated Amortization | (72,719) | (64,447) |
Finite lived intangible assets, Amortized Cost | $ 53,772 | 56,894 |
Unpatented Technology [Member] | ||
Finite lived intangible assets, Useful life | 15 years | |
Finite lived intangible assets, Cost | $ 13,169 | 13,169 |
Finite lived intangible assets, Accumulated Amortization | (11,628) | (10,435) |
Finite lived intangible assets, Amortized Cost | $ 1,541 | 2,734 |
Computer Software, Intangible Asset [Member] | ||
Finite lived intangible assets, Useful life | 9 years | |
Finite lived intangible assets, Cost | $ 1,046 | 1,046 |
Finite lived intangible assets, Accumulated Amortization | (1,042) | (1,037) |
Finite lived intangible assets, Amortized Cost | $ 4 | 9 |
Noncompete Agreements [Member] | ||
Finite lived intangible assets, Useful life | 9 years | |
Finite lived intangible assets, Cost | $ 1,731 | 1,961 |
Finite lived intangible assets, Accumulated Amortization | (508) | (406) |
Finite lived intangible assets, Amortized Cost | 1,223 | 1,555 |
Finite lived intangible assets, Cost | 500,289 | 450,472 |
Finite lived intangible assets, Accumulated Amortization | (371,700) | (348,278) |
Finite lived intangible assets, Amortized Cost | 128,589 | 102,194 |
Indefinite-lived tradenames | 128,321 | 182,684 |
Total intangible assets | 628,610 | 633,156 |
Finite lived intangible assets, Amortized Cost, Excluding Goodwill | $ 256,910 | $ 284,878 |
Note 9 - Reconciliation of Prod
Note 9 - Reconciliation of Product Warranty Liability (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Balance at beginning of year | $ 30,909 | $ 33,734 | $ 36,111 |
Product warranty reserve assumed in acquisition | 351 | 360 | 600 |
Payments | (21,686) | (20,975) | (19,084) |
Provision for warranties issued | 20,823 | 22,890 | 33,707 |
Changes in estimates for pre-existing warranties | (200) | (5,100) | (17,600) |
Balance at end of year | 30,197 | 30,909 | 33,734 |
Balance at beginning of year | 27,193 | $ 23,092 | $ 13,474 |
Deferred revenue contracts assumed in acquisition | 291 | ||
Deferred revenue contracts sold | 5,978 | $ 7,343 | $ 11,998 |
Amortization of deferred revenue contracts | (4,501) | (3,242) | (2,380) |
Balance at end of year | $ 28,961 | $ 27,193 | $ 23,092 |
Note 9 - Deferred Product Oblig
Note 9 - Deferred Product Obligations (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Current portion - other accrued liabilities | $ 21,726 | $ 24,143 |
Long-term portion - other long-term liabilities | 8,471 | 6,766 |
Total | 30,197 | 30,909 |
Current portion - other accrued liabilities | 6,026 | 4,519 |
Long-term portion - other long-term liabilities | 22,935 | 22,674 |
Total | $ 28,961 | $ 27,193 |
Note 10 - Credit Agreements (De
Note 10 - Credit Agreements (Details Textual) $ / shares in Units, $ in Thousands | Jul. 01, 2015 | May. 29, 2015USD ($) | Mar. 30, 2015USD ($) | Dec. 31, 2014USD ($) | Sep. 30, 2014USD ($) | Apr. 30, 2014USD ($) | Apr. 01, 2014 | May. 31, 2013USD ($)$ / shares | May. 13, 2013USD ($) | May. 02, 2013USD ($) | Feb. 11, 2013USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) | Dec. 31, 2015USD ($)$ / shares | Dec. 31, 2014USD ($)$ / shares | Dec. 31, 2013USD ($)$ / shares |
Term Loan [Member] | Base Rate [Member] | Net Debt Leverage Ratio Threshold [Member] | |||||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.50% | ||||||||||||||||
Term Loan [Member] | Base Rate [Member] | |||||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.75% | ||||||||||||||||
Term Loan [Member] | Adjusted LIBOR Rate [Member] | Net Debt Leverage Ratio Threshold [Member] | |||||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 2.50% | ||||||||||||||||
Term Loan [Member] | Adjusted LIBOR Rate [Member] | |||||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 2.75% | ||||||||||||||||
Term Loan [Member] | LIBOR Floor Rate [Member] | |||||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 0.75% | ||||||||||||||||
Term Loan [Member] | |||||||||||||||||
Net Debt Leverage Ratio Achieved | 3 | 3 | 3 | ||||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,200,000 | ||||||||||||||||
Uncommitted Incremental Term Loan Facility | 300,000 | ||||||||||||||||
Net Debt Leverage Ratio Threshold | 3 | ||||||||||||||||
Debt Instrument, Interest Rate, Increase (Decrease) | 0.25% | (0.25%) | |||||||||||||||
Gain Loss on Change in Cash Flows Related to Debt | $ (2,381) | $ 16,014 | |||||||||||||||
Net Debt Leverage Ratio Not Achieved | 3 | 3 | |||||||||||||||
Debt Issuance Cost | $ 1,528 | ||||||||||||||||
Debt Instrument, Fee Amount | 49 | ||||||||||||||||
Repayments of Long-term Debt | $ 100,000 | $ 50,000 | $ 25,000 | $ 50,000 | $ 12,000 | $ 30,000 | $ 80,000 | ||||||||||
Write off of Deferred Debt Issuance Cost | $ 4,795 | $ 2,084 | $ 2,763 | ||||||||||||||
Base Rate [Member] | ABL Revolving Credit Facility [Member] | |||||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.00% | ||||||||||||||||
Adjusted LIBOR Rate [Member] | ABL Revolving Credit Facility [Member] | |||||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 2.00% | ||||||||||||||||
ABL Revolving Credit Facility [Member] | |||||||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | 150,000 | $ 150,000 | |||||||||||||||
Uncommitted Incremental Term Loan Facility | 50,000 | ||||||||||||||||
Debt Instrument Extension Period | 1 year | ||||||||||||||||
Amended ABL Facility [Member] | |||||||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | 250,000 | ||||||||||||||||
Uncommitted Incremental Term Loan Facility | $ 100,000 | ||||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 0.50% | ||||||||||||||||
Debt Issuance Cost | $ 540 | ||||||||||||||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.125% | ||||||||||||||||
Proceeds from Lines of Credit | $ 100,000 | ||||||||||||||||
Long-term Line of Credit | 100,000 | ||||||||||||||||
Line of Credit Facility, Remaining Borrowing Capacity | $ 148,500 | ||||||||||||||||
Revolving Credit Facility [Member] | |||||||||||||||||
Debt Instrument, Fee Amount | 7,100 | ||||||||||||||||
Write off of Deferred Debt Issuance Cost | 5,473 | ||||||||||||||||
Deferred Finance Costs, Net | 21,824 | ||||||||||||||||
Payments for Fees | $ 13,797 | ||||||||||||||||
Common Stock, Dividends, Per Share, Declared | $ / shares | $ 5 | $ 5 | |||||||||||||||
Gain Loss on Change in Cash Flows Related to Debt | $ (2,381) | $ 16,014 | |||||||||||||||
Short-term Debt | $ 5,359 | $ 8,594 | $ 5,359 |
Note 10 - Short-term Borrowings
Note 10 - Short-term Borrowings (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
ABL Revolving Credit Facility [Member] | ||
Short-term Debt | $ 0 | $ 0 |
Other Lines of Credit [Member] | ||
Short-term Debt | 8,594,000 | 5,359,000 |
Short-term Debt | $ 8,594,000 | $ 5,359,000 |
Note 10 - Long-term Borrowings
Note 10 - Long-term Borrowings (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Term loan | $ 954,000 | $ 1,104,000 |
Original issue discount | (16,940) | $ (23,861) |
ABL facility | 100,000 | |
Capital lease obligation | 1,694 | $ 2,059 |
Other | 12,000 | 460 |
Total | 1,050,754 | 1,082,658 |
Less: current portion of debt | 500 | 389 |
Less: current portion of capital lease obligation | 157 | 168 |
Total | $ 1,050,097 | $ 1,082,101 |
Note 10 - Maturities of long-te
Note 10 - Maturities of long-term Borrowings Outstanding (Details) $ in Thousands | Dec. 31, 2015USD ($) |
2,016 | $ 657 |
2,017 | 11,666 |
2,018 | 172 |
2,019 | 177 |
After 2,019 | 1,055,022 |
Total | $ 1,067,694 |
Note 11 - Stock Repurchase Pr65
Note 11 - Stock Repurchase Program (Details Textual) - USD ($) $ in Thousands | Aug. 05, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Treasury Stock [Member] | ||||
Shares Acquired Under Stock Repurchases Program, Shares | 3,303,500 | |||
Stock Repurchase Program, Authorized Amount | $ 200,000 | |||
Stock Repurchase Program, Period in Force | 2 years | |||
Payments for Repurchase of Common Stock | $ 99,942 |
Note 12 - Earnings Per Share (D
Note 12 - Earnings Per Share (Details Textual) - shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Employee Stock Option [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 161,400 | 81,600 | 10,300 |
Restricted Stock [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 1,000 |
Note 12 - Reconciliation of Bas
Note 12 - Reconciliation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Net income | $ 77,747 | $ 174,613 | $ 174,539 | |
Weighted average common shares outstanding - basic: (in shares) | 68,096,051 | 68,538,248 | 68,081,632 | |
Dilutive effect of stock compensation awards (in shares) | [1] | 1,104,246 | 1,632,796 | 1,585,897 |
Weighted average common shares outstanding - diluted: (in shares) | 69,200,297 | 70,171,044 | 69,667,529 | |
Net income per common share - basic: (in dollars per share) | $ 1.14 | $ 2.55 | $ 2.56 | |
Net income per common share - diluted: (in dollars per share) | $ 1.12 | $ 2.49 | $ 2.51 | |
[1] | Excludes approximately 161,400, 81,600 and 10,300 stock options for the years ended December 31, 2015, 2014 and 2013, respectively, as the impact of such awards was anti-dilutive. Excludes approximately 1,000 shares of restricted stock for the year ended December 31, 2015, as the impact of such awards was anti-dilutive. |
Note 13 - Income Taxes (Details
Note 13 - Income Taxes (Details Textual) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Examination, Penalties and Interest Expense | $ 0 | ||
Tax Credit Carry Forward State Research and Development | $ 16,275,000 | ||
Tax Credit Carryforward State Manufacturing | 3,132,000 | ||
Unrecognized Tax Benefits, Interest on Income Taxes Expense | 174,000 | $ 86,000 | |
Unrecognized Tax Benefits, Income Tax Penalties Expense | 363,000 | $ 263,000 | |
Undistributed Earnings of Foreign Subsidiaries | $ 11,430,000 |
Note 13 - Provision for Income
Note 13 - Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Federal | $ 13,614 | $ 38,161 | $ 48,287 |
State | 1,966 | 1,645 | 5,648 |
Foreign | 3,588 | 5,701 | 2,214 |
Total | 19,168 | 45,507 | 56,149 |
Federal | 31,869 | 42,474 | 42,003 |
State | 1,387 | (3,134) | 5,523 |
Foreign | (7,326) | (1,462) | 167 |
Total | 25,930 | 37,878 | 47,693 |
Change in valuation allowance | 138 | 364 | 335 |
Provision for income taxes | $ 45,236 | $ 83,749 | $ 104,177 |
Note 13 - Components of Deferre
Note 13 - Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Goodwill and intangible assets | $ 23,624 | |
Accrued expenses | $ 18,982 | 18,191 |
Deferred revenue | 9,389 | 7,945 |
Inventories | 9,772 | 9,177 |
Pension obligations | 7,684 | 8,738 |
Stock-based compensation | 7,974 | 8,628 |
Operating loss and credit carryforwards | 15,677 | 10,047 |
Other | 2,842 | 1,428 |
Valuation allowance | (1,523) | (1,385) |
Total deferred tax assets | 70,797 | $ 86,393 |
Goodwill and intangible assets | 12,455 | |
Depreciation | 19,507 | $ 18,535 |
Debt refinancing costs | 7,732 | 10,925 |
Prepaid expenses | 1,241 | 1,032 |
Total deferred tax liabilities | 40,935 | 30,492 |
Net deferred tax assets | $ 29,862 | $ 55,901 |
Note 13 - Net Current and Noncu
Note 13 - Net Current and Noncurrent Components of Deferred Taxes (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Net current deferred tax assets | $ 29,355 | $ 22,841 |
Net long-term deferred tax assets | 8,196 | 47,894 |
Net long-term deferred tax liabilitites | (6,166) | (13,449) |
Valuation allowance | (1,523) | (1,385) |
Net deferred tax assets | $ 29,862 | $ 55,901 |
Note 13 - Unrecognized Tax Bene
Note 13 - Unrecognized Tax Benefits (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Unrecognized tax benefit, beginning of period | $ 6,394,000 | $ 0 |
Increase in unrecognized tax benefit for positions taken in current period | 845,000 | 6,394,000 |
Unrecognized tax benefit, end of period | $ 7,239,000 | $ 6,394,000 |
Note 13 - Reconciliation of Sta
Note 13 - Reconciliation of Statutory and Effective Tax Rates (Details) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
U.S. stautory rate | 35.00% | 35.00% | 35.00% |
State taxes | 4.10% | 3.10% | 3.70% |
Valuation allowance | 0.60% | 0.20% | 0.20% |
Research and development credits | (2.30%) | (5.00%) | (0.60%) |
Other | (0.60%) | (0.90%) | (0.90%) |
Effective tax rate | 36.80% | 32.40% | 37.40% |
Note 14 - Benefit Plans (Detail
Note 14 - Benefit Plans (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Equity and Real Estate [Member] | Minimum [Member] | |||
Defined Benefit Plan, Target Plan Asset Allocations | 65.00% | ||
Equity and Real Estate [Member] | Maximum [Member] | |||
Defined Benefit Plan, Target Plan Asset Allocations | 85.00% | ||
Employer Contribution under Medical and Dental Plan | $ 14,352 | $ 11,701 | $ 9,500 |
Other Labor-related Expenses | $ 3,400 | ||
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay | 50.00% | ||
Defined Contribution Plan Percentage of Eligible Compensation | 6.00% | ||
Defined Contribution Plan, Cost Recognized | $ 3,000 | 3,400 | 3,300 |
Defined Benefit Plan, Amortization of Gains (Losses) | (1,228) | $ (106) | $ (1,108) |
Defined Benefit Plan, Amount to be Amortized from Accumulated Other Comprehensive Income (Loss) Next Fiscal Year | $ 941 | ||
Defined Benefit Plan, Target Plan Asset Allocations | 100.00% | ||
Defined Benefit Plans, Estimated Future Employer Contributions in Next Fiscal Year | $ 741 |
Note 14 - Accumulated Benefit O
Note 14 - Accumulated Benefit Obligation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Accumulated benefit obligation at end of period | $ 63,894 | $ 68,376 | |
Projected benefit obligation at beginning of period | 68,376 | 52,825 | |
Interest cost | 2,681 | 2,591 | $ 2,423 |
Net actuarial loss (gain) | (5,254) | 14,791 | |
Benefits paid | (1,909) | (1,831) | |
Projected benefit obligation at end of period | 63,894 | 68,376 | 52,825 |
Fair value of plan assets at beginning of period | 45,452 | 42,440 | |
Actual return (loss) on plan assets | (384) | 3,110 | |
Company contributions | 826 | 1,733 | |
Fair value of plan assets at end of period | 43,985 | 45,452 | $ 42,440 |
Funded status: accrued pension liability included in other long-term liabilities | (19,909) | (22,924) | |
Net actuarial loss | $ (11,362) | $ (13,243) |
Note 14 - Components of Net Per
Note 14 - Components of Net Periodic (Benefit) Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Interest cost | $ 2,681 | $ 2,591 | $ 2,423 |
Expected return on plan assets | (3,041) | (2,933) | (2,520) |
Amortization of net loss | 1,228 | 106 | 1,108 |
Net periodic pension (benefit) cost | $ 868 | $ (236) | $ 1,011 |
Note 14 - Weighted-average Assu
Note 14 - Weighted-average Assumptions Used to Determine Benefit Obligations (Details) | Dec. 31, 2015 | Dec. 31, 2014 | |
Pension Plan [Member] | |||
Discount rate | 4.36% | 3.97% | |
Other Pension Plan [Member] | |||
Discount rate | 4.39% | 3.99% | |
Rate of compensation increase (1) | [1] | ||
[1] | No compensation increase was assumed as the plans were frozen effective December 31, 2008. |
Note 14 - Weighted-average As78
Note 14 - Weighted-average Assumptions Used to Determine Net Periodic Pension (Benefit) Cost (Details) | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Discount rate | 3.99% | 5.01% | 4.14% | |
Expected long-term rate of return on plan assets | 6.75% | 6.88% | 6.95% | |
Rate of compensation increase (1) | [1] | |||
[1] | No compensation increase was assumed as the plans were frozen effective December 31, 2008. |
Note 14 - Weighted-average Asse
Note 14 - Weighted-average Asset Allocation (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Fixed Income Funds [Member] | ||
Defined Benefit Plan, Target Plan Asset Allocations | 20.00% | |
Fair values of the Pension Plan's assets | $ 8,571 | $ 7,400 |
Asset Category, Percentage | 19.00% | 16.00% |
Domestic Equity [Member] | ||
Defined Benefit Plan, Target Plan Asset Allocations | 49.00% | |
Fair values of the Pension Plan's assets | $ 20,479 | $ 24,373 |
Asset Category, Percentage | 47.00% | 54.00% |
International Equity [Member] | ||
Defined Benefit Plan, Target Plan Asset Allocations | 21.00% | |
Fair values of the Pension Plan's assets | $ 9,687 | $ 8,869 |
Asset Category, Percentage | 22.00% | 19.00% |
Real Estate [Member] | ||
Defined Benefit Plan, Target Plan Asset Allocations | 10.00% | |
Fair values of the Pension Plan's assets | $ 5,248 | $ 4,810 |
Asset Category, Percentage | 12.00% | 11.00% |
Defined Benefit Plan, Target Plan Asset Allocations | 100.00% | |
Fair values of the Pension Plan's assets | $ 43,985 | $ 45,452 |
Asset Category, Percentage | 100.00% | 100.00% |
Note 14 - Fair Value of Pension
Note 14 - Fair Value of Pension Plan's Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Mutual Fund [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair values of the Pension Plan's assets | $ 40,310 | $ 42,267 |
Mutual Fund [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair values of the Pension Plan's assets | ||
Mutual Fund [Member] | ||
Fair values of the Pension Plan's assets | $ 40,310 | $ 42,267 |
Other Investment [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair values of the Pension Plan's assets | ||
Other Investment [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair values of the Pension Plan's assets | $ 3,675 | $ 3,185 |
Other Investment [Member] | ||
Fair values of the Pension Plan's assets | 3,675 | 3,185 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair values of the Pension Plan's assets | 40,310 | 42,267 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair values of the Pension Plan's assets | 3,675 | 3,185 |
Fair values of the Pension Plan's assets | $ 43,985 | $ 45,452 |
Note 14 - Reconciliation of Lev
Note 14 - Reconciliation of Level 3 Assets (Details) - Other Investment [Member] - Fair Value, Inputs, Level 3 [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Balance at beginning of period | $ 3,185 | |
Purchases | 408 | $ 3,100 |
Realized gains | 82 | 85 |
Balance at end of period | $ 3,675 | $ 3,185 |
Note 14 - Expected Benefit Paym
Note 14 - Expected Benefit Payments (Details) $ in Thousands | Dec. 31, 2015USD ($) |
2,016 | $ 2,052 |
2,017 | 2,231 |
2,018 | 2,340 |
2,019 | 2,424 |
2,020 | 2,552 |
2,021 | $ 15,238 |
Note 15 - Share Plans (Details
Note 15 - Share Plans (Details Textual) - USD ($) | Jun. 21, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Feb. 10, 2010 |
Employee Stock Option [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years | 4 years | 4 years | 4 years | 5 years | 5 years | ||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | 10 years | 10 years | 10 years | 10 years | 10 years | ||
Allocated Share-based Compensation Expense | $ 4,198,000 | $ 8,509,000 | $ 9,034,000 | |||||
Shares Paid for Tax Withholding for Share Based Compensation | 272,296 | 235,644 | 323,427 | |||||
Payments Related to Tax Withholding for Share-based Compensation | $ 9,768,000 | $ 10,411,000 | $ 8,449,000 | |||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 7,342,000 | |||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 2 years 182 days | |||||||
Restricted Stock [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | |||||||
Allocated Share-based Compensation Expense | $ 4,043,000 | $ 4,103,000 | $ 3,074,000 | |||||
Shares Paid for Tax Withholding for Share Based Compensation | 65,763 | 34,854 | 163,458 | |||||
Payments Related to Tax Withholding for Share-based Compensation | $ 3,233,000 | $ 1,770,000 | $ 6,571,000 | |||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 6,723,000 | |||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 2 years | |||||||
Maximum [Member] | ||||||||
Performance Share Award, Percentage | 200.00% | |||||||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ 49.70 | $ 59.01 | $ 48.36 | |||||
Minimum [Member] | ||||||||
Performance Share Award, Percentage | 0.00% | |||||||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ 28.36 | $ 42.20 | $ 29.81 | |||||
Special Cash Dividend 2013 [Member] | ||||||||
Allocated Share-based Compensation Expense | $ 0 | |||||||
Common Stock, Dividends, Per Share, Cash Paid | $ 5 | |||||||
Board of Directors Chairman [Member] | ||||||||
Deferred Compensation Arrangement with Individual, Shares Issued | 16,260 | 8,869 | 7,291 | |||||
Deferred Compensation Arrangement with Individual, Compensation Expense | $ 615,000 | $ 509,000 | $ 260,000 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 9,100,000 | |||||||
Allocated Share-based Compensation Expense | $ 8,241,000 | $ 12,612,000 | $ 12,368,000 | |||||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ 45.18 | $ 57.21 | $ 35.04 | |||||
Payments Related to Tax Withholding for Share-based Compensation | $ 12,956,000 | $ 12,160,000 | $ 14,988,000 |
Note 15 - Weighted-average Assu
Note 15 - Weighted-average Assumptions used in the Black-Scholes-Merton Option Pricing Model (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Weighted average grant date fair value (in dollars per share) | $ 19.07 | $ 26.35 | $ 16.30 |
Expected stock price volatility | 41.00% | 45.00% | 47.00% |
Risk free interest rate | 1.72% | 1.90% | 1.21% |
Expected annual dividend per share (in dollars per share) | $ 0 | $ 0 | $ 0 |
Expected life of options (years) | 6 years 91 days | 6 years 91 days | 6 years 91 days |
Note 15 - Summary of Stock Opti
Note 15 - Summary of Stock Option Activity (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Outstanding, Number of Options (in shares) | 2,542,139 | 2,937,301 | 3,440,042 | |
Outstanding, Weighted- Average Exercise Price (in dollars per share) | $ 9.94 | $ 5.74 | $ 8.44 | |
Outstanding, Weighted- Average Remaining Contractual Term | 7 years 255 days | 8 years 182 days | 9 years 182 days | 9 years 182 days |
Outstanding, Aggregate Intrinsic Value | $ 40,271 | $ 96,518 | $ 148,369 | $ 87,001 |
Granted, Number of Options (in shares) | 287,165 | 187,189 | 253,857 | |
Granted, Weighted- Average Exercise Price (in dollars per share) | $ 45.18 | $ 57.21 | $ 35.04 | |
Exercised, Number of Options (in shares) | (604,088) | (549,282) | (703,326) | |
Exercised, Weighted- Average Exercise Price (in dollars per share) | $ 3.79 | $ 3.44 | $ 6.05 | |
Expired, Number of Options (in shares) | (6,409) | (259) | (1,625) | |
Expired, Weighted- Average Exercise Price (in dollars per share) | $ 50.11 | $ 15.94 | $ 20.94 | |
Forfeited, Number of Options (in shares) | (90,793) | (32,810) | (51,647) | |
Forfeited, Weighted- Average Exercise Price (in dollars per share) | $ 37.27 | $ 12.68 | $ 17.02 | |
Outstanding, Number of Options (in shares) | 2,128,014 | 2,542,139 | 2,937,301 | 3,440,042 |
Outstanding, Weighted- Average Exercise Price (in dollars per share) | $ 15.15 | $ 9.94 | $ 5.74 | $ 8.44 |
Exercisable, Number of Options (in shares) | 1,574,790 | |||
Exercisable, Weighted- Average Exercise Price (in dollars per share) | $ 6.08 | |||
Exercisable, Weighted- Average Remaining Contractual Term | 7 years 182 days | |||
Exercisable, Aggregate Intrinsic Value | $ 39,072 |
Note 15 - Summary of Restricted
Note 15 - Summary of Restricted Share Awards Activity (Details) - Restricted Stock [Member] - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Non-vested (in shares) | 267,284 | 304,406 | 665,071 |
Non-vested (in dollars per share) | $ 38.72 | $ 29.68 | $ 17.75 |
Granted (in shares) | 193,117 | 115,473 | 112,494 |
Granted (in dollars per share) | $ 41.31 | $ 54.35 | $ 37.82 |
Vested (in shares) | (183,362) | (105,123) | (450,537) |
Vested (in dollars per share) | $ 32.56 | $ 28.31 | $ 14.21 |
Forfeited (in shares) | (33,999) | (47,472) | (22,622) |
Forfeited (in dollars per share) | $ 47.77 | $ 42.31 | $ 25.36 |
Non-vested (in shares) | 243,040 | 267,284 | 304,406 |
Non-vested (in dollars per share) | $ 44.16 | $ 38.72 | $ 29.68 |
Note 16 - Commitments and Con87
Note 16 - Commitments and Contingencies (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Operating Leases, Rent Expense, Net | $ 4,796 | $ 4,102 | $ 2,457 |
Amount Financed by Dealers | $ 32,400 | $ 26,100 |
Note 16 - Minimum Rental Paymen
Note 16 - Minimum Rental Payments (Details) $ in Thousands | Dec. 31, 2015USD ($) |
2,016 | $ 3,561 |
2,017 | 3,072 |
2,018 | 3,033 |
2,019 | 2,153 |
2,020 | 1,809 |
After 2,020 | 5,489 |
Total | $ 19,117 |
Note 17 - Special Cash Divide89
Note 17 - Special Cash Dividends (Details Textual) - USD ($) | May. 31, 2013 | Jun. 21, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Special Cash Dividend 2013 [Member] | |||||
Allocated Share-based Compensation Expense | $ 0 | ||||
Common Stock, Dividends, Per Share, Declared | $ 5 | ||||
Dividends, Common Stock, Cash | $ 340,772,000 | ||||
Special Cash Dividends Declared but Unpaid | $ 76,000 | ||||
Retained Earnings Dividend Declaration Date | $ 4,934,000 | ||||
Allocated Share-based Compensation Expense | $ 8,241,000 | $ 12,612,000 | $ 12,368,000 | ||
Common Stock, Dividends, Per Share, Declared | $ 5 | $ 5 |
Note 18 - Unaudited Quarterly F
Note 18 - Unaudited Quarterly Financial Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Net sales | $ 357,830 | $ 359,291 | $ 288,360 | $ 311,818 | $ 403,997 | $ 352,305 | $ 362,609 | $ 342,008 | $ 1,317,299 | $ 1,460,919 | $ 1,485,765 |
Gross profit | 131,124 | 130,326 | 95,897 | 102,603 | 138,410 | 130,283 | 128,012 | 119,514 | 459,950 | 516,219 | 569,560 |
Operating income | 27,316 | 67,867 | 39,467 | 44,911 | 79,115 | 70,794 | 78,160 | 65,306 | 179,561 | 293,375 | 351,465 |
Net income | $ 9,182 | $ 34,036 | $ 14,844 | $ 19,685 | $ 49,390 | $ 36,497 | $ 54,025 | $ 34,701 | $ 77,747 | $ 174,613 | $ 174,539 |
Net income per common share, basic: (in dollars per share) | $ 0.14 | $ 0.50 | $ 0.22 | $ 0.29 | $ 0.72 | $ 0.53 | $ 0.79 | $ 0.51 | $ 1.14 | $ 2.55 | $ 2.56 |
Net income per common share, diluted: (in dollars per share) | $ 0.14 | $ 0.49 | $ 0.21 | $ 0.28 | $ 0.70 | $ 0.52 | $ 0.77 | $ 0.50 | $ 1.12 | $ 2.49 | $ 2.51 |
Note 19 - Schedule of Valuation
Note 19 - Schedule of Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Allowance for Doubtful Accounts [Member] | ||||
Balance at Beginning of Year | $ 2,275 | $ 2,658 | $ 1,166 | |
Reserves Assumed in Acquisition | 63 | 209 | 496 | |
Additions Charged to Earnings | 481 | 672 | 1,037 | |
Charges to Reserve, Net | [1] | (325) | (1,264) | (41) |
Balance at End of Year | 2,494 | 2,275 | 2,658 | |
Inventory Valuation Reserve [Member] | ||||
Balance at Beginning of Year | 9,387 | 6,558 | 6,999 | |
Reserves Assumed in Acquisition | 614 | 2,282 | 1,131 | |
Additions Charged to Earnings | 3,739 | 2,797 | 72 | |
Charges to Reserve, Net | [1] | (3,158) | (2,250) | (1,644) |
Balance at End of Year | 10,582 | 9,387 | 6,558 | |
Valuation Allowance of Deferred Tax Assets [Member] | ||||
Balance at Beginning of Year | 1,385 | 1,021 | 806 | |
Additions Charged to Earnings | 138 | 364 | 335 | |
Balance at End of Year | $ 1,523 | $ 1,385 | 1,021 | |
Reserves Assumed in Acquisition | $ (120) | |||
[1] | Deductions from the allowance for doubtful accounts equal accounts receivable written off, less recoveries, against the allowance. Deductions from the reserves for inventory excess and obsolete items equal inventory written off against the reserve as items were disposed of. |
Note 20 - Subsequent Events (De
Note 20 - Subsequent Events (Details Textual) - Subsequent Event [Member] - Pramac [Member] | Feb. 15, 2016 |
Entity Number of Employees | 600 |
Number Of Manufacturing Plants | 4 |
Number Of Commercial Branches | 14 |
Number of Countries in which Entity Operates | 150 |