Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Feb. 19, 2021 | Jun. 30, 2020 | |
Document Information [Line Items] | |||
Entity Central Index Key | 0001474735 | ||
Entity Registrant Name | GENERAC HOLDINGS INC. | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2020 | ||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2020 | ||
Document Transition Report | false | ||
Entity File Number | 001-34627 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 20-5654756 | ||
Entity Address, Address Line One | S45 W29290 Hwy 59 | ||
Entity Address, City or Town | Waukesha | ||
Entity Address, State or Province | WI | ||
Entity Address, Postal Zip Code | 53189 | ||
City Area Code | 262 | ||
Local Phone Number | 544-4811 | ||
Title of 12(b) Security | Common Stock, $0.01 par value | ||
Trading Symbol | GNRC | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 7,391,323,686 | ||
Entity Common Stock, Shares Outstanding | 62,861,442 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 655,128 | $ 322,883 |
Accounts receivable, less allowance for credit losses of $12,001 and $6,968 at December 31, 2020 and 2019, respectively | 374,906 | 319,538 |
Inventories | 603,317 | 522,024 |
Prepaid expenses and other assets | 36,382 | 31,384 |
Total current assets | 1,669,733 | 1,195,829 |
Property and equipment, net | 343,936 | 316,976 |
Customer lists, net | 49,205 | 55,552 |
Patents and technology, net | 86,727 | 85,546 |
Other intangible assets, net | 9,932 | 8,259 |
Tradenames, net | 146,159 | 148,377 |
Goodwill | 855,228 | 805,284 |
Deferred Income Tax Assets, Net, Total | 1,497 | 2,933 |
Operating lease and other assets | 73,006 | 46,913 |
Total assets | 3,235,423 | 2,665,669 |
Current liabilities: | ||
Short-term borrowings | 39,282 | 58,714 |
Accounts payable | 330,247 | 261,977 |
Accrued wages and employee benefits | 63,036 | 41,361 |
Other accrued liabilities | 204,812 | 132,629 |
Current portion of long-term borrowings and finance lease obligations | 4,147 | 2,383 |
Total current liabilities | 641,524 | 497,064 |
Long-term borrowings and finance lease obligations | 841,764 | 837,767 |
Deferred income taxes | 115,769 | 96,328 |
Operating lease and other long-term liabilities | 179,955 | 140,432 |
Total liabilities | 1,779,012 | 1,571,591 |
Redeemable noncontrolling interest | 66,207 | 61,227 |
Stockholders’ equity: | ||
Common stock, par value $0.01, 500,000,000 shares authorized, 72,024,329 and 71,667,726 shares issued at December 31, 2020 and 2019, respectively | 721 | 717 |
Additional paid-in capital | 525,541 | 498,866 |
Treasury stock, at cost, 9,173,731 and 9,103,013 shares at December 31, 2020 and 2019, respectively | (332,164) | (324,551) |
Excess purchase price over predecessor basis | (202,116) | (202,116) |
Retained earnings | 1,432,565 | 1,084,383 |
Accumulated other comprehensive loss | (34,254) | (24,917) |
Stockholders’ equity attributable to Generac Holdings Inc. | 1,390,293 | 1,032,382 |
Noncontrolling interests | (89) | 469 |
Total stockholders’ equity | 1,390,204 | 1,032,851 |
Total liabilities and stockholders’ equity | $ 3,235,423 | $ 2,665,669 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Accounts receivable, allowance for doubtful accounts | $ 12,001 | $ 6,968 |
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) | 72,024,329 | 71,667,726 |
Treasury stock, shares (in shares) | 9,173,731 | 9,103,013 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Net sales | $ 2,485,200 | $ 2,204,336 | $ 2,023,464 | |
Costs of goods sold | 1,527,546 | 1,406,584 | 1,298,424 | |
Gross profit | 957,654 | 797,752 | 725,040 | |
Operating expenses: | ||||
Selling and service | 246,373 | 217,683 | 191,887 | |
Research and development | 80,251 | 68,394 | 50,019 | |
General and administrative | 119,644 | 110,868 | 103,841 | |
Amortization of intangibles | 32,280 | 28,644 | 22,112 | |
Total operating expenses | 478,548 | 425,589 | 367,859 | |
Income from operations | 479,106 | 372,163 | 357,181 | |
Other (expense) income: | ||||
Interest expense | (32,991) | (41,544) | (40,956) | |
Investment income | 2,182 | 2,767 | 1,893 | |
Loss on extinguishment of debt | [1] | 0 | (926) | (1,332) |
Loss on pension settlement | [2] | 0 | (10,920) | 0 |
Other, net | (2,106) | (1,933) | (5,710) | |
Total other expense, net | (32,915) | (52,556) | (46,105) | |
Income before provision for income taxes | 446,191 | 319,607 | 311,076 | |
Provision for income taxes | 98,973 | 67,299 | 69,856 | |
Net income | 347,218 | 252,308 | 241,220 | |
Net income attributable to noncontrolling interests | (3,358) | 301 | 2,963 | |
Net income attributable to Generac Holdings Inc. | 350,576 | 252,007 | 238,257 | |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustment | 4,948 | 2,210 | (5,976) | |
Net unrealized gain (loss) on derivatives | (14,285) | (13,855) | 2,924 | |
Pension liability adjustment | 0 | 10,541 | 437 | |
Net current-period other comprehensive income (loss) | (9,337) | (1,104) | (2,615) | |
Total comprehensive income | 337,881 | 251,204 | 238,605 | |
Comprehensive income (loss) attributable to noncontrolling interests | (364) | (635) | 1,647 | |
Comprehensive income attributable to Generac Holdings Inc. | $ 338,245 | $ 251,839 | $ 236,958 | |
Net income attributable to Generac Holdings Inc. per common share - basic: (in dollars per share) | $ 5.61 | $ 4.09 | $ 3.57 | |
Weighted average common shares outstanding - basic: (in shares) | 62,280,889 | 61,926,986 | 61,662,031 | |
Net income attributable to Generac Holdings Inc. per common share - diluted: (in dollars per share) | $ 5.48 | $ 4.03 | $ 3.54 | |
Weighted average common shares outstanding - diluted: (in shares) | 63,737,734 | 62,865,446 | 62,233,225 | |
[1] | Represents the non-cash write-off of original issue discount and deferred financing costs due to a voluntary prepayment of Term Loan debt. | |||
[2] | Represents pre-tax settlement charges related to the termination of the Company’s domestic pension plan in the fourth quarter of 2019. |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Cumulative Effect, Period of Adoption, Adjusted Balance [Member]Common Stock [Member] | Cumulative Effect, Period of Adoption, Adjusted Balance [Member]Additional Paid-in Capital [Member] | Cumulative Effect, Period of Adoption, Adjusted Balance [Member]Treasury Stock [Member] | Cumulative Effect, Period of Adoption, Adjusted Balance [Member]Excess Purchase Price over Predecessor Basis [Member] | Cumulative Effect, Period of Adoption, Adjusted Balance [Member]Retained Earnings [Member] | Cumulative Effect, Period of Adoption, Adjusted Balance [Member]AOCI Attributable to Parent [Member] | Cumulative Effect, Period of Adoption, Adjusted Balance [Member]Parent [Member] | Cumulative Effect, Period of Adoption, Adjusted Balance [Member]Noncontrolling Interest [Member] | Cumulative Effect, Period of Adoption, Adjusted Balance [Member] | 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] | Parent [Member] | Noncontrolling Interest [Member] | Total |
Balance (in shares) at Dec. 31, 2017 | 70,820,173 | (8,448,874) | ||||||||||||||||
Balance at Dec. 31, 2017 | $ 708 | $ 459,816 | $ (294,005) | $ (202,116) | $ 610,836 | $ (21,198) | $ 554,041 | $ 279 | $ 554,320 | |||||||||
Net unrealized gain (loss) on derivatives | 0 | 0 | 0 | 0 | 0 | 2,924 | 2,924 | 0 | 2,924 | |||||||||
Foreign currency translation adjustment | $ 0 | 0 | $ 0 | 0 | 0 | (5,976) | (5,976) | (2) | (5,978) | |||||||||
Common stock issued under equity incentive plans, net of shares withheld for employee taxes and strike price (in shares) | 366,245 | 0 | ||||||||||||||||
Common stock issued under equity incentive plans, net of shares withheld for employee taxes and strike price | $ 4 | 1,737 | $ 0 | 0 | 0 | 0 | 1,741 | 0 | 1,741 | |||||||||
Net share settlement of restricted stock awards (in shares) | 0 | (38,186) | ||||||||||||||||
Net share settlement of restricted stock awards | $ 0 | 0 | $ (1,812) | 0 | 0 | 0 | (1,812) | 0 | (1,812) | |||||||||
Stock repurchases (in shares) | 0 | (560,000) | ||||||||||||||||
Stock repurchases | $ 0 | 0 | $ (25,656) | 0 | 0 | 0 | (25,656) | 0 | (25,656) | |||||||||
Cash dividends paid to noncontrolling interest of subsidiary | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (314) | (314) | |||||||||
Share-based compensation | 0 | 14,563 | 0 | 0 | 0 | 0 | 14,563 | 0 | 14,563 | |||||||||
Pension liability adjustment | 0 | 0 | 0 | 0 | 0 | 437 | 437 | 0 | 437 | |||||||||
Redemption value adjustment | 0 | 0 | 0 | 0 | (17,970) | 0 | (17,970) | 0 | (17,970) | |||||||||
Net income attributable to Generac Holdings Inc. | $ 0 | 0 | $ 0 | 0 | 238,257 | 0 | 238,257 | 238,257 | ||||||||||
Net income | 749 | |||||||||||||||||
Net income | 239,006 | |||||||||||||||||
Balance (in shares) at Dec. 31, 2018 | 71,186,418 | (9,047,060) | ||||||||||||||||
Balance at Dec. 31, 2018 | $ 712 | 476,116 | $ (321,473) | (202,116) | 831,123 | (23,813) | 760,549 | 712 | 761,261 | |||||||||
Net unrealized gain (loss) on derivatives | 0 | 0 | 0 | 0 | 0 | (13,855) | (13,855) | 0 | (13,855) | |||||||||
Foreign currency translation adjustment | $ 0 | 0 | $ 0 | 0 | 0 | 2,210 | 2,210 | (30) | 2,180 | |||||||||
Common stock issued under equity incentive plans, net of shares withheld for employee taxes and strike price (in shares) | 481,308 | 0 | ||||||||||||||||
Common stock issued under equity incentive plans, net of shares withheld for employee taxes and strike price | $ 5 | 6,056 | $ 0 | 0 | 0 | 0 | 6,061 | 0 | 6,061 | |||||||||
Net share settlement of restricted stock awards (in shares) | 0 | (55,953) | ||||||||||||||||
Net share settlement of restricted stock awards | $ 0 | 0 | $ (3,078) | 0 | 0 | 0 | (3,078) | 0 | (3,078) | |||||||||
Stock repurchases (in shares) | 0 | |||||||||||||||||
Cash dividends paid to noncontrolling interest of subsidiary | 0 | 0 | $ 0 | 0 | 0 | 0 | 0 | (285) | (285) | |||||||||
Share-based compensation | 0 | 16,694 | 0 | 0 | 0 | 0 | 16,694 | 0 | 16,694 | |||||||||
Pension liability adjustment | 0 | 0 | 0 | 0 | 0 | 10,541 | 10,541 | 0 | 10,541 | |||||||||
Redemption value adjustment | 0 | 0 | 0 | 0 | 1,253 | 0 | 1,253 | 0 | 1,253 | |||||||||
Net income attributable to Generac Holdings Inc. | 0 | 0 | 0 | 0 | 252,007 | 0 | 252,007 | 252,007 | ||||||||||
Net income | 226 | |||||||||||||||||
Net income | 252,233 | |||||||||||||||||
Change in noncontrolling interest share | $ 0 | 0 | $ 0 | 0 | 0 | 0 | 0 | (154) | (154) | |||||||||
Balance (in shares) at Dec. 31, 2019 | 71,667,726 | (9,103,013) | ||||||||||||||||
Balance at Dec. 31, 2019 | $ 0 | $ 0 | $ 0 | $ 0 | $ (1,147) | $ 0 | $ (1,147) | $ 0 | $ (1,147) | $ 717 | 498,866 | $ (324,551) | (202,116) | 1,084,383 | (24,917) | 1,032,382 | 469 | 1,032,851 |
Net unrealized gain (loss) on derivatives | 0 | 0 | 0 | 0 | 0 | (14,285) | (14,285) | 0 | (14,285) | |||||||||
Foreign currency translation adjustment | $ 0 | 0 | $ 0 | 0 | 0 | 4,948 | 4,948 | (29) | 4,919 | |||||||||
Common stock issued under equity incentive plans, net of shares withheld for employee taxes and strike price (in shares) | 356,603 | 0 | ||||||||||||||||
Common stock issued under equity incentive plans, net of shares withheld for employee taxes and strike price | $ 4 | 5,793 | $ 0 | 0 | 0 | 0 | 5,797 | 0 | 5,797 | |||||||||
Net share settlement of restricted stock awards (in shares) | 0 | (70,718) | ||||||||||||||||
Net share settlement of restricted stock awards | $ 0 | 0 | $ (7,613) | 0 | 0 | 0 | (7,613) | 0 | (7,613) | |||||||||
Share-based compensation | 0 | 20,882 | 0 | 0 | 0 | 0 | 20,882 | 0 | 20,882 | |||||||||
Pension liability adjustment | 0 | |||||||||||||||||
Redemption value adjustment | 0 | 0 | 0 | 0 | (1,247) | 0 | (1,247) | 0 | (1,247) | |||||||||
Net income attributable to Generac Holdings Inc. | $ 0 | 0 | $ 0 | 0 | 350,576 | 0 | 350,576 | 350,576 | ||||||||||
Net income | (529) | |||||||||||||||||
Net income | 350,047 | |||||||||||||||||
Balance (in shares) at Dec. 31, 2020 | 72,024,329 | (9,173,731) | ||||||||||||||||
Balance at Dec. 31, 2020 | $ 721 | $ 525,541 | $ (332,164) | $ (202,116) | $ 1,432,565 | $ (34,254) | $ 1,390,293 | $ (89) | $ 1,390,204 |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Parentheticals) - AOCI Attributable to Parent [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Unrealized gain (loss) on interest rate swaps, tax | $ (4,826) | $ (4,877) | $ 1,027 |
Pension liability adjustment, tax | $ 154 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | 65 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2020 | ||
Operating activities | |||||
Net income | $ 347,218 | $ 252,308 | $ 241,220 | ||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||
Depreciation | 36,493 | 32,265 | 25,296 | ||
Amortization of intangible assets | 32,280 | 28,644 | 22,112 | ||
Amortization of original issue discount and deferred financing costs | 2,598 | 4,712 | 4,749 | ||
Loss on extinguishment of debt | [1] | 0 | 926 | 1,332 | |
Loss on pension settlement | [2] | 0 | 10,920 | 0 | |
Deferred income taxes | 21,195 | 18,733 | 23,600 | ||
Share-based compensation expense | [3] | 20,882 | 16,694 | 14,563 | |
Other | 7,145 | 1,086 | 2,474 | ||
Net changes in operating assets and liabilities, net of acquisitions: | |||||
Accounts receivable | (55,976) | 8,231 | (43,243) | ||
Inventories | (77,983) | 26,369 | (152,594) | ||
Other assets | 12,859 | (358) | (6,362) | ||
Accounts payable | 66,040 | (69,404) | 86,359 | ||
Accrued wages and employee benefits | 20,157 | (3,724) | 12,626 | ||
Other accrued liabilities | 60,593 | (16,252) | 16,972 | ||
Excess tax benefits from equity awards | (6,968) | (2,263) | (1,877) | ||
Net cash provided by operating activities | 486,533 | 308,887 | 247,227 | ||
Investing activities | |||||
Proceeds from sale of property and equipment | 179 | 95 | 214 | ||
Proceeds from beneficial interest in securitization transactions | 2,651 | 2,630 | 3,933 | ||
Expenditures for property and equipment | (62,128) | (60,802) | (47,601) | ||
Acquisition of business, net of cash acquired | (64,797) | (112,001) | (65,440) | ||
Net cash used in investing activities | (124,095) | (170,078) | (108,894) | ||
Financing activities | |||||
Proceeds from short-term borrowings | 257,593 | 73,340 | 53,965 | ||
Proceeds from long-term borrowings | 277 | 1,660 | 51,425 | ||
Repayments of short-term borrowings | (277,719) | (59,518) | (27,880) | ||
Repayments of long-term borrowings and finance lease obligations | (4,758) | (53,049) | (101,827) | ||
Stock repurchases | 0 | 0 | (25,656) | $ (305,547) | |
Payment of contingent acquisition consideration | (4,000) | (5,550) | 0 | ||
Payment of debt issuance costs | 0 | (1,473) | (1,702) | ||
Cash dividends paid to noncontrolling interest of subsidiary | 0 | (285) | (314) | ||
Taxes paid related to equity awards | (14,910) | (6,438) | (5,659) | ||
Proceeds from the exercise of stock options | 13,089 | 9,395 | 5,614 | ||
Net cash used in financing activities | (30,428) | (41,918) | (52,034) | ||
Effect of exchange rate changes on cash and cash equivalents | 235 | 1,510 | (289) | ||
Net increase in cash and cash equivalents | 332,245 | 98,401 | 86,010 | ||
Cash and cash equivalents at beginning of period | 322,883 | 224,482 | 138,472 | ||
Cash and cash equivalents at end of period | 655,128 | 322,883 | 224,482 | $ 655,128 | |
Supplemental disclosure of cash flow information | |||||
Interest | 28,765 | 35,465 | 41,007 | ||
Income taxes | $ 61,861 | $ 61,767 | $ 41,044 | ||
[1] | Represents the non-cash write-off of original issue discount and deferred financing costs due to a voluntary prepayment of Term Loan debt. | ||||
[2] | Represents pre-tax settlement charges related to the termination of the Company’s domestic pension plan in the fourth quarter of 2019. | ||||
[3] | Represents share-based compensation expense to account for stock options, restricted stock and other stock awards over their respective vesting periods. |
Note 1 - Description of Busines
Note 1 - Description of Business | 12 Months Ended |
Dec. 31, 2020 | |
Notes to Financial Statements | |
Business Description and Basis of Presentation [Text Block] | 1. Description of Business Founded in 1959, Over the years, the Company has executed a number of acquisitions that support its strategic plan (refer to Item 1 10 ● In June 2018, 10kW 2,750kW. ● In February 2019, 2010 ● In March 2019, 2005 ● In April 2019, 2010 ● In July 2020, ● In September 2020, 2009 zero ● In October 2020, 2003 one |
Note 2 - Summary of Accounting
Note 2 - Summary of Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Notes to Financial Statements | |
Significant Accounting Policies [Text Block] | 2. Summary of Accounting Policies Principles of Consolidation The consolidated financial statements include the accounts of the Company and its subsidiaries that are consolidated in conformity with U.S. GAAP. 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 Concentration of Credit Risk The Company maintains the majority of its domestic cash in a few commercial banks 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 13% and 9% of accounts receivable at December 31, 2020 2019 No one December 31, 2020 2019 2018 Accounts Receivable and Allowance for Credit Losses The Company's trade and other receivables primarily arise from the sale of our products to independent residential dealers, industrial distributors and dealers, national and regional retailers, electrical/HVAC/solar wholesalers, e-commerce partners, equipment rental companies, equipment distributors, solar installers, utilities, and certain end users with payment terms generally ranging from 30 90 may Receivables are recorded at their face value amount less an allowance for credit losses. The Company maintains an allowance for credit losses, which represents an estimate of expected losses over the remaining contractual life of its receivables considering current market conditions and estimates for supportable forecasts when appropriate. The Company measures expected credit losses on its trade receivables on an entity by entity basis. The estimate of expected credit losses considers a historical loss experience rate that is adjusted for delinquency trends, collection experience, and/or economic risk where appropriate based on current market conditions. Additionally, management develops a specific allowance for trade receivables known to have a high risk of expected future credit loss. The Company has historically experienced immaterial write-offs given the nature of the customers that receive credit. In addition, the Company holds a credit insurance plan that covers the risk of loss up to specified amounts on certain trade receivables. As of December 31, 2020, The following is a tabular reconciliation of the Company's allowance for credit losses: Year Ended December 31, 2020 Balance at beginning of period $ 6,968 Adoption of ASU 2016-13 1,147 Established for Acquisitions 198 Provision for credit losses 4,645 Charge-offs (1,448 ) Currency translation 491 Balance at end of period $ 12,001 Inventories Inventories are stated at the lower of cost or market, with cost determined generally using the first first 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. Finance lease right of use assets are included in property and equipment. Refer to Note 10, Land improvements 8 – 20 Buildings and improvements 10 – 40 Machinery and equipment 3 – 15 Dies and tools 3 – 10 Vehicles 3 – 6 Office equipment and systems 3 – 15 Leasehold improvements 2 – 20 Total depreciation expense was $36,493, $32,265, and $25,296 for the years ended December 31, 2020, 2019 2018 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 October 31 may not not not not not not not Other indefinite-lived intangible assets consist of certain tradenames. The Company tests the carrying value of these tradenames annually as of October 31, may not not The Company performed the required annual impairment tests for goodwill and other indefinite-lived intangible assets for the fiscal years 2020 2019 2018 no 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 Debt Issuance Costs Debt discounts and direct costs incurred in connection with the issuance or amendment 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. $2,598, $4,712, and $4,749 of deferred financing costs and original issue discount were amortized to interest expense during fiscal years 2020 2019 2018 five 2021 $2,640; 2022 $2,689; 2023 $2,579; 2024 $2,508; 2025 $2,555. 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 not Revenue Recognition not one not not one not At the request of certain customers, the Company will warehouse inventory billed to the customer but not not While the Company’s standard payment terms are less than one December 31, 2020 December 31, 2019 December 31, 2020 December 31, 2019 one The Company offers standard warranty coverage on substantially all products that it sells and accounts for this standard warranty coverage as an assurance warranty. As such, no 11, The Company also sells extended warranty coverage for certain products, which it accounts for as service warranties. In most cases, the extended warranty is sold as a separate contract. As such, extended warranty sales are considered a separate performance obligation, and the extended warranty transaction is separate and distinct from the product. The extended warranty transaction price is initially recorded as deferred revenue in the consolidated balance sheets and amortized on a straight-line basis to net sales in the consolidated statements of comprehensive income over the life of the contracts following the standard warranty period. For extended warranty contracts that the Company sells under a third third 11, In addition to extended warranties, the Company offers other services, including remote monitoring, installation, maintenance and grid services in certain circumstances. Total service revenues accounted for less than two December 31, 2020 Refer to Note 7, 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. Expenditures for advertising production costs are expensed when the related advertisement is first December 31, 2020, 2019 2018 Research and Development The Company expenses research and development costs as incurred. Total expenditures incurred for research and development were $80,251, $68,394, and $50,019 for the years ended December 31, 2020, 2019 2018 Foreign Currency Translation and Transactions Balance sheet amounts for non-U.S. Dollar functional currency businesses are translated into U.S. Dollars at the rates of exchange in effect at the end of the fiscal year. 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 ASC 820 10, Fair Value Measurement , 820 10 three 1 2 3 no 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 $815,260, was approximately $831,038 (Level 2 December 31, 2020 For the fair value of the assets and liabilities measured on a recurring basis, refer to the fair value table in Note 5, 2. 820 10. Use of Estimates The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the 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 , not 7A 10 S hare -Based Compensation Share-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. Refer to Note 17, New Accounting Pronouncements Changes to GAAP are established by the Financial Accounting Standards Board (FASB) in the form of accounting standard updates (“ASUs”) to the FASB Accounting Standards Codification (ASC). ASUs not not not Recently Adopted Accounting Standards On January 1, 2020 , 2016 13 , Financial Instruments – Credit Losses (Topic 326 Measurement of Credit Losses on Financial Instruments no 2016 13. January 1, 2020 326 2 On January 1, 2020, 2020 04, Reference Rate Reform. |
Note 3 - Acquisitions
Note 3 - Acquisitions | 12 Months Ended |
Dec. 31, 2020 | |
Notes to Financial Statements | |
Business Combination Disclosure [Text Block] | 3. Acquisitions Fiscal 2020 Acquisition of Enbala On October 7, 2020, The Company recorded a preliminary purchase price allocation during the fourth 2020 December 31, 2020. Other Acquisitions In July 2020, In September 2020, The combined purchase price for these acquisitions was $22,815 and was funded solely through cash on hand. The accompanying consolidated financial statements include the results of the acquired businesses since the dates of acquisition through December 31, 2020. Fiscal 2019 Acquisition of Pika On April 26, 2019, The Company finalized the Pika purchase price allocation during the first 2020 not December 31, 2020. Acquisition of Neurio On March 12, 2019, third 2019. The Company finalized the Neurio purchase price allocation during the first 2020 December 31, 2020. Other Acquisitions In February 2019, December 31, 2020. Fiscal 2018 Acquisition of Selmec On June 1, 2018, 2020 2019 2020 2019 The Company finalized the Selmec purchase price allocation during the second 2019 not December 31, 2020 Summary Purchase Price Allocations The fair values assigned to certain assets acquired and liabilities assumed, as of the acquisition dates, for the years ended December 31 Year Ended December 31, 2020 2019 2018 Accounts receivable $ 5,151 $ 4,643 $ 14,302 Inventories 3,711 4,313 8,000 Prepaid expenses and other assets 897 304 4,323 Property and equipment 635 384 5,572 Intangible assets 26,057 79,200 33,631 Goodwill 42,698 41,428 46,196 Deferred income taxes - 3,217 3,252 Other assets 1,122 133 597 Total assets acquired 80,271 133,622 115,873 Accounts payable 4,088 4,380 7,216 Accrued wages and employee benefits 700 4,408 397 Other accrued liabilities 2,151 602 13,671 Current portion of long-term debt - 937 - Deferred income taxes 4,134 9,958 10,974 Other long-term liabilities 4,401 778 3,643 Redeemable non-controlling interest - 3,165 - Net assets acquired $ 64,797 $ 109,394 $ 79,972 Pro Forma Information The following unaudited pro forma information of the Company gives effect to all acquisitions as though the transactions had occurred on January 1, 2018. 1, Year Ended December 31, 2020 2019 2018 Net Sales: As reported $ 2,485,200 $ 2,204,336 $ 2,023,464 Pro forma 2,512,017 2,242,710 2,093,112 Net income attributable to Generac Holdings Inc.: As reported $ 350,576 $ 252,007 $ 238,257 Pro forma 339,317 239,925 220,555 Net income attributable to Generac Holdings Inc. per common share - diluted As reported $ 5.48 $ 4.03 $ 3.54 Pro forma 5.34 3.84 3.26 This unaudited pro forma information is presented for informational purposes only and is not January 1, 2018. |
Note 4 - Redeemable Noncontroll
Note 4 - Redeemable Noncontrolling Interest | 12 Months Ended |
Dec. 31, 2020 | |
Notes to Financial Statements | |
Redeemable Noncontrolling Interest [Text Block] | 4. Redeemable Noncontrolling Interest On March 1, 2016, February 2019, five five no April 1, 2021. On February 1, 2019, five may five For both transactions, the redeemable noncontrolling interest is recorded at the greater of the initial fair value, increased or decreased for the noncontrolling interests’ share of comprehensive income (loss), or the estimated redemption value, with any adjustments to the redemption value impacting retained earnings, but not 14, Year Ended December 31, 2020 2019 2018 Balance at beginning of period $ 61,227 $ 61,004 $ 43,929 Noncontrolling interest - 3,165 (1) - Net income (2,829 ) 75 2,214 Foreign currency translation 6,562 (1,764 ) (3,109 ) Redemption value adjustment 1,247 (1,253 ) 17,970 Balance at end of period $ 66,207 $ 61,227 $ 61,004 ( 1 February 1, 2019. |
Note 5 - Derivative Instruments
Note 5 - Derivative Instruments and Hedging Activities | 12 Months Ended |
Dec. 31, 2020 | |
Notes to Financial Statements | |
Derivative Instruments and Hedging Activities Disclosure [Text Block] | 5. Derivative Instruments and Hedging Activities Commodities The Company is exposed to price fluctuations in commodities including steel, copper and aluminum; and periodically utilizes commodity derivatives to mitigate the impact of these potential price fluctuations on its financial results. These derivatives typically have maturities of less than eighteen December 31, 2020 2019 one no Because these contracts do not December 31, 2020, 2019 2018 Foreign Currencies The Company is exposed to foreign currency exchange risk as a result of transactions denominated in currencies other than the U.S. Dollar. The Company periodically utilizes foreign currency forward purchase and sales contracts to manage the volatility associated with certain foreign currency purchases and sales in the normal course of business. Contracts typically have maturities of twelve December 31, 2020 2019 forty-four forty-three Because these contracts do not December 31, 2020, 2019 2018 Interest Rate Swaps In 2017, twenty twelve December 31, 2020. December 2019, March 2020, three fifteen December 31, 2020. December 31, 2020, 2019 2018 Fair Value The following table presents the fair value of the Company’s derivatives: December 31, December 31, Commodity contracts $ 1,386 $ 6 Foreign currency contracts (154 ) 31 Interest rate swaps (29,536 ) (10,425 ) The fair value of the commodity contract is included in prepaid expenses and other current assets, and the fair values of the foreign currency contracts and interest rate swaps are included in other accrued liabilities and other long-term liabilities in the consolidated balance sheet as of December 31, 2020 December 31, 2019 December 31, 2020 2019 |
Note 6 - Accumulated Other Comp
Note 6 - Accumulated Other Comprehensive Loss | 12 Months Ended |
Dec. 31, 2020 | |
Notes to Financial Statements | |
Comprehensive Income (Loss) Note [Text Block] | 6. Accumulated Other Comprehensive Loss The following presents a tabular disclosure of changes in AOCL during the years ended December 31, 2020 2019 Foreign Currency Translation Adjustments Defined Benefit Pension Plan Unrealized Loss on Cash Flow Hedges Total Beginning Balance – January 1, 2020 $ (16,622 ) $ - $ (8,295 ) $ (24,917 ) Other comprehensive income (loss) before reclassifications 4,948 - (14,285 ) (1) (9,337 ) Amounts reclassified from AOCL - - - - Net current-period other comprehensive income (loss) 4,948 - (14,285 ) (9,337 ) Ending Balance – December 31, 2020 $ (11,674 ) $ - $ (22,580 ) $ (34,254 ) Foreign Currency Translation Adjustments Defined Benefit Pension Plan Unrealized Gain (Loss) on Cash Flow Hedges Total Beginning Balance – January 1, 2019 $ (18,832 ) $ (10,541 ) $ 5,560 $ (23,813 ) Other comprehensive income (loss) before reclassifications 2,210 1,474 (2) (13,855 ) (3) (10,171 ) Amounts reclassified from AOCL - 9,067 (4) - 9,067 Net current-period other comprehensive income (loss) 2,210 10,541 (13,855 ) (1,104 ) Ending Balance – December 31, 2019 $ (16,622 ) $ - $ (8,295 ) $ (24,917 ) ( 1 Represents unrealized losses of $(19,111), net of tax effect of $4,826 for the year ended December 31, 2020 ( 2 Represents unrecognized actuarial gains of $1,992 net of tax effect of $(518), included in the computation of net periodic pension cost for the year ended December 31, 2019. 16, ( 3 Represents unrealized losses of $(18,732), net of tax effect of $4,877 for the year ended December 31, 2019. ( 4 Details of reclassifications from AOCL during 2019 Amounts reclassified from AOCL Loss on pension settlement $ 10,920 Amortization of net loss 843 Total before tax 11,763 Income tax impact (2,696 ) Amounts reclassified from AOCL during 2019 $ 9,067 |
Note 7 - Segment Reporting
Note 7 - Segment Reporting | 12 Months Ended |
Dec. 31, 2020 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | 7. Segment Reporting The Company has two two The Company's product offerings consist primarily of power generation equipment, energy storage systems, and other power products geared for varying end customer uses. Residential products and C&I products are each a similar class of products based on similar power output and end customer. The breakout of net sales between residential, C&I, and other products by reportable segment is as follows: Net Sales by Segment Year Ended December 31, 2020 Product Classes Domestic International Total Residential products $ 1,495,383 $ 61,118 $ 1,556,501 Commercial & industrial products 404,867 296,884 701,751 Other 188,558 38,390 226,948 Total net sales $ 2,088,808 $ 396,392 $ 2,485,200 Year Ended December 31, 2019 Product Classes Domestic International Total Residential products $ 1,086,019 $ 57,704 $ 1,143,723 Commercial & industrial products 513,482 358,113 871,595 Other 143,397 45,621 189,018 Total net sales $ 1,742,898 $ 461,438 $ 2,204,336 Year Ended December 31, 2018 Product Classes Domestic International Total Residential products $ 980,707 $ 62,032 $ 1,042,739 Commercial & industrial products 461,415 358,855 820,270 Other 124,398 36,057 160,455 Total net sales $ 1,566,520 $ 456,944 $ 2,023,464 Residential products consist primarily of automatic home standby generators ranging in output from 7.5kW 150kW, C&I products consist of larger output stationary generators used in C&I applications and fueled by diesel, natural gas, liquid propane and bi-fuel, with power outputs ranging from 10kW 3,250kW. Other consists primarily of aftermarket service parts and product accessories sold to our dealers, the amortization of extended warranty deferred revenue, remote monitoring subscription revenue, grid services, installation and maintenance service revenue. The aftermarket service parts and product accessories are generally transferred to the customer at a point in time, while the extended warranty and subscription revenue are recognized over the life of the contract. Other service revenue is recognized when the service is performed. Management evaluates the performance of its segments based primarily on Adjusted EBITDA, which is reconciled to Income before provision for income taxes below. The computation of Adjusted EBITDA is based on the definition that is contained in the Company’s credit agreements. Adjusted EBITDA Year Ended December 31, 2020 2019 2018 Domestic $ 563,394 $ 428,667 $ 388,495 International 20,379 25,448 36,057 Total adjusted EBITDA $ 583,773 $ 454,115 $ 424,552 Interest expense (32,991 ) (41,544 ) (40,956 ) Depreciation and amortization (68,773 ) (60,767 ) (47,408 ) Non-cash write-down and other adjustments (1) 327 (240 ) (3,532 ) Non-cash share-based compensation expense (2) (20,882 ) (16,694 ) (14,563 ) Loss on extinguishment of debt (3) - (926 ) (1,332 ) Loss on pension settlement (4) - (10,920 ) - Transaction costs and credit facility fees (5) (2,151 ) (2,724 ) (3,883 ) Business optimization and other charges (6) (12,158 ) (1,572 ) (952 ) Other (954 ) 879 (850 ) Income before provision for income taxes $ 446,191 $ 319,607 $ 311,076 ( 1 Includes certain foreign currency and purchase accounting related adjustments, gains/losses on disposal of assets and unrealized mark-to-market adjustments on commodity contracts. ( 2 Represents share-based compensation expense to account for stock options, restricted stock and other stock awards over their respective vesting periods. ( 3 Represents the non-cash write-off of original issue discount and deferred financing costs due to a voluntary prepayment of Term Loan debt. ( 4 Represents pre-tax settlement charges related to the termination of the Company’s domestic pension plan in the fourth 2019. ( 5 Represents transaction costs incurred directly in connection with any investment, as defined in our credit agreement, equity issuance, debt issuance or refinancing, together with certain fees relating to our senior secured credit facilities. ( 6 For the year ended December 31, 2020, 19 December 31, 2019, The following tables summarize additional financial information by reportable segment: Assets Year Ended December 31, 2020 2019 2018 Domestic $ 2,659,597 $ 2,123,251 $ 1,868,554 International 575,826 542,418 557,760 Total $ 3,235,423 $ 2,665,669 $ 2,426,314 Depreciation and Amortization Year Ended December 31, 2020 2019 2018 Domestic $ 53,020 $ 46,145 $ 35,586 International 15,753 14,764 11,822 Total $ 68,773 $ 60,909 $ 47,408 Capital Expenditures Year Ended December 31, 2020 2019 2018 Domestic $ 51,867 $ 36,007 $ 38,242 International 10,261 24,795 9,359 Total $ 62,128 $ 60,802 $ 47,601 The Company’s sales in the United States represent approximately 82%, 75%, and 74% of total sales for the years ended December 31, 2020, 2019 2018 December 31, 2020 2019, |
Note 8 - Balance Sheet Details
Note 8 - Balance Sheet Details | 12 Months Ended |
Dec. 31, 2020 | |
Notes to Financial Statements | |
Supplemental Balance Sheet Disclosures [Text Block] | 8. Balance Sheet Details Inventories consist of the following: December 31, 2020 2019 Raw material $ 375,516 $ 328,021 Work-in-process 6,833 10,387 Finished goods 220,968 183,616 Total $ 603,317 $ 522,024 As of December 31, 2020 2019 Property and equipment consists of the following: December 31, 2020 2019 Land and improvements $ 18,363 $ 18,252 Buildings and improvements 198,908 177,079 Machinery and equipment 153,696 117,114 Dies and tools 24,190 22,040 Vehicles 6,037 3,955 Office equipment and systems 107,923 99,124 Leasehold improvements 5,276 4,293 Construction in progress 30,227 36,299 Gross property and equipment 544,620 478,156 Accumulated depreciation (200,684 ) (161,180 ) Total $ 343,936 $ 316,976 Total property and equipment included finance leases of $27,269 and $26,063 at December 31, 2020 2019, 10, 842, Leases. |
Note 9 - Goodwill and Intangibl
Note 9 - Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2020 | |
Notes to Financial Statements | |
Goodwill and Intangible Assets Disclosure [Text Block] | 9. Goodwill and Intangible Assets The changes in the carrying amount of goodwill by reportable segment for the years ended December 31, 2020 2019 Domestic International Total Balance at December 31, 2018 $ 621,451 $ 143,204 $ 764,655 Acquisitions of businesses, net 37,758 3,078 40,836 Foreign currency translation - (207 ) (207 ) Balance at December 31, 2019 659,209 146,075 805,284 Acquisitions of businesses, net 42,722 - 42,722 Foreign currency translation 604 6,618 7,222 Balance at December 31, 2020 $ 702,535 $ 152,693 $ 855,228 Refer to Note 3, The details of the gross goodwill applicable to each reportable segment at December 31, 2020 2019 December 31, 2020 December 31, 2019 Gross Accumulated Impairment Net Gross Accumulated Impairment Net Domestic $ 1,205,728 $ (503,193 ) $ 702,535 $ 1,162,402 $ (503,193 ) $ 659,209 International 157,304 (4,611 ) 152,693 150,686 (4,611 ) 146,075 Total $ 1,363,032 $ (507,804 ) $ 855,228 $ 1,313,088 $ (507,804 ) $ 805,284 The following table summarizes intangible assets by major category as of December 31, 2020 2019 Weighted Average December 31, 2020 December 31, 2019 Amortization Years Gross Accumulated Amortization Net Book Value Gross Accumulated Amortization Net Book Value Finite-lived intangible assets: Tradenames 9 $ 58,729 $ (40,891 ) $ 17,838 $ 56,669 $ (36,613 ) $ 20,056 Customer lists 12 370,736 (321,531 ) 49,205 369,932 (314,380 ) 55,552 Patents and technology 10 233,271 (146,544 ) 86,727 213,972 (128,426 ) 85,546 Software - 1,046 (1,046 ) - 1,046 (1,046 ) - Non-compete/other 4 16,469 (6,537 ) 9,932 12,063 (3,804 ) 8,259 Total finite-lived intangible assets $ 680,251 $ (516,549 ) $ 163,702 $ 653,682 $ (484,269 ) $ 169,413 Indefinite-lived tradenames 128,321 - 128,321 128,321 - 128,321 Total intangible assets $ 808,572 $ (516,549 ) $ 292,023 $ 782,003 $ (484,269 ) $ 297,734 Amortization of intangible assets was $32,280, $28,644 and $22,112 in 2020 2019 2018 five 2021 $33,906; 2022 $26,649; 2023 $22,129; 2024 $18,581; 2025 $16,808. |
Note 10 - Leases
Note 10 - Leases | 12 Months Ended |
Dec. 31, 2020 | |
Notes to Financial Statements | |
Leases of Lessee Disclosure [Text Block] | 10. Leases The Company determines if an arrangement is or contains a lease at contract inception. The Company recognizes a right of use (“ROU”) asset and lease liability at the lease commencement date based on the present value of the lease payments over the lease term. As the Company’s leases generally do not may not The Company has lease agreements with both lease and nonlease components, which it elected to account for as a single lease component. However, the Company did not The Company leases certain manufacturing facilities, distribution centers, office space, warehouses, automobiles, machinery and computer equipment globally under both finance and operating leases. The Company’s leases have remaining lease terms of up to 20 years, of which certain leases, primarily within the buildings and improvements asset class, include options to extend the leases for up to 10 additional years. Further, the Company leases certain buildings from a noncontrolling interest holder, which the Company has determined to be arms’ length transactions. The Company is a lessor of one third not The Company records its operating lease cost and amortization of finance lease ROU assets within cost of goods sold or operating expenses in the consolidated statements of comprehensive income depending on the cost center of the underlying asset. The Company records its finance lease interest cost within interest expense in the consolidated statements of comprehensive income. The components of total lease cost consist of the following: Year Ended December 31, 2020 Year Ended December 31, 2019 Operating lease cost $ 18,648 $ 9,647 Finance lease cost: Amortization of ROU assets 2,587 2,531 Interest on lease liabilities 2,237 2,227 Total lease cost $ 23,472 $ 14,405 Prior to the adoption of ASU 2016 02 2019, December 31, 2018 As of January 1, 2019, 2016 02, December 31, 2020 December 31, 2019 Operating Leases Operating lease ROU assets (1) $ 62,030 $ 35,950 Operating lease liabilities - current (2) $ 17,192 $ 7,231 Operating lease liabilities - noncurrent (3) 46,558 29,778 Total operating lease liabilities $ 63,750 $ 37,009 Finance Leases Finance lease ROU assets, gross $ 34,929 $ 29,142 Accumulated depreciation - finance lease ROU assets (7,660 ) (3,079 ) Finance lease ROU assets, net (4) $ 27,269 $ 26,063 Finance lease liabilities - current (5) $ 2,311 $ 1,830 Finance lease liabilities - noncurrent (6) 25,060 24,132 Total finance lease liabilities $ 27,371 $ 25,962 ( 1 Recorded in the operating lease and other assets line within the consolidated balance sheets ( 2 Recorded in the other accrued liabilities line within the consolidated balance sheets ( 3 Recorded in the operating lease and other long-term liabilities line within the consolidated balance sheets ( 4 Recorded in the property and equipment, net line within the consolidated balance sheets ( 5 Recorded in the current portion of long-term borrowings and finance lease obligations line within the consolidated balance sheets ( 6 Recorded in the long-term borrowings and finance lease obligations line within the consolidated balance sheets Supplemental cash flow information related to the Company’s leases is as follows: Year Ended December 31, 2020 Year Ended December 31, 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 18,412 $ 10,125 Operating cash flows from finance leases 1,871 1,864 Financing cash flows from finance leases 3,957 3,237 ROU assets obtained in exchange for lease liabilities Operating leases 41,678 4,021 Finance leases 3,737 8,797 Weighted average remaining lease term and discount rate information related to the Company’s leases as of December 31, 2020 Weighted average remaining lease term (in years) Operating Leases 4.92 Finance Leases 12.90 Weighted average discount rate Operating Leases 4.48 % Finance Leases 7.66 % The maturities of the Company’s lease liabilities as of December 31, 2020 Finance Leases Operating Leases 2021 $ 4,146 $ 19,530 2022 4,292 18,135 2023 3,112 9,519 2024 2,999 7,452 2025 2,678 5,359 After 2025 28,596 11,711 Total minimum lease payments 45,823 71,706 Interest component (18,452 ) (7,956 ) Present value of minimum lease payments $ 27,371 $ 63,750 |
Note 11 - Product Warranty Obli
Note 11 - Product Warranty Obligations | 12 Months Ended |
Dec. 31, 2020 | |
Notes to Financial Statements | |
Product Warranty Disclosure [Text Block] | 1 Product Warranty Obligations The Company records a liability for standard product warranty obligations accounted for as assurance warranties 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. The following is a tabular reconciliation of the Company’s standard product warranty liability accounted for as an assurance warranty: Year Ended December 31, 2020 2019 2018 Balance at beginning of period $ 49,316 $ 41,785 $ 35,422 Product warranty reserve assumed in acquisition 124 1,062 - Payments (33,496 ) (26,096 ) (20,029 ) Provision for warranty issued 42,093 32,060 26,910 Changes in estimates for pre-existing warranties 1,181 505 (518 ) Balance at end of period $ 59,218 $ 49,316 $ 41,785 The Company also sells extended warranty coverage for certain products, which it accounts for as a service warranty. The sales of extended warranties are recorded as deferred revenue, and typically have a duration of five ten Year Ended December 31, 2020 2019 2018 Balance at beginning of period $ 78,738 $ 68,340 $ 57,854 Deferred revenue contracts issued 26,968 24,483 21,440 Amortization of deferred revenue contracts (15,918 ) (14,085 ) (10,954 ) Balance at end of period $ 89,788 $ 78,738 $ 68,340 The timing of recognition of the Company’s deferred revenue balance related to extended warranties at December 31, 2020 2021 $ 18,754 2022 18,819 2023 16,464 2024 11,849 After 2024 23,902 Total $ 89,788 The Company has a post-sale extended warranty marketing program with a third third December 31, 2020 2019 December 31, 2020, 2019 2018 Standard product warranty obligations and extended warranty related deferred revenues are included in the consolidated balance sheets as follows: December 31, 2020 2019 Product warranty liability Current portion - other accrued liabilities $ 37,417 $ 27,885 Long-term portion - other long-term liabilities 21,801 21,431 Total $ 59,218 $ 49,316 Deferred revenue related to extended warranties Current portion - other accrued liabilities $ 18,857 $ 15,519 Long-term portion - other long-term liabilities 70,931 63,219 Total $ 89,788 $ 78,738 |
Note 12 - Credit Agreements
Note 12 - Credit Agreements | 12 Months Ended |
Dec. 31, 2020 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | 12. Credit Agreements Short-term borrowings are included in the consolidated balance sheets as follows: December 31, 2020 2019 ABL facility $ - $ 30,961 Other lines of credit 39,282 27,753 Total $ 39,282 $ 58,714 Long-term borrowings are included in the consolidated balance sheets as follows: December 31, 2020 2019 Term loan $ 830,000 $ 830,000 Original issue discount and deferred financing costs (15,450 ) (18,048 ) ABL facility - - Finance lease obligation 27,371 25,962 Other 3,990 2,236 Total 845,911 840,150 Less: current portion of debt 1,836 553 Less: current portion of finance lease obligation 2,311 1,830 Total $ 841,764 $ 837,767 Maturities of long-term borrowings outstanding at December 31, 2020 10, 2021 $ 1,836 2022 1,905 2023 46 2024 115 After 2024 830,088 Total $ 833,990 The Company’s credit agreements originally provided for a $1,200,000 term loan B credit facility (Term Loan) and currently include a $300,000 uncommitted incremental term loan facility. The maturity date of the Term Loan is currently December 13, 2026. first second In June 2018, 470 50, second 2018. In December 2019, May 31, 2023 December 13, 2026, 0.75% 470 50, fourth 2019. In connection with our Term Loan amendment in December 2019, The Term Loan does not 1.00 December 31, 2020 1.00 no The Company’s credit agreements also provide for a senior secured ABL revolving credit facility (ABL Facility). The maturity date of the ABL Facility is currently June 12, 2023. first second In June 2018, June 12, 2023. 470 50, second 2018. In June 2018, second 2018 October 2018, As of December 31, 2020 As of December 31, 2020 December 31, 2019 |
Note 13 - Stock Repurchase Prog
Note 13 - Stock Repurchase Programs | 12 Months Ended |
Dec. 31, 2020 | |
Notes to Financial Statements | |
Treasury Stock [Text Block] | 13. Stock Repurchase Programs In September 2018, October 2020. September 2020, October 27, 2020, may may may may December 31, 2020 2019, not December 31, 2018, August 2015, |
Note 14 - Earnings Per Share
Note 14 - Earnings Per Share | 12 Months Ended |
Dec. 31, 2020 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | 14. Earnings Per Share Basic earnings per share is calculated by dividing net income attributable to the common shareholders of the Company by the weighted average number of common shares outstanding during the period, exclusive of restricted shares. Except where the result would be anti-dilutive, diluted earnings per share is calculated by assuming the vesting of unvested restricted stock and the exercise of stock options. Refer to Note 4, The following table reconciles the numerator and the denominator used to calculate basic and diluted earnings per share: Year Ended December 31, 2020 2019 2018 Numerator Net income attributable to Generac Holdings Inc. $ 350,576 $ 252,007 $ 238,257 Redeemable noncontrolling interest redemption value adjustment (1,247 ) 1,253 (17,970 ) Net income attributable to common shareholders $ 349,329 $ 253,260 $ 220,287 Denominator Weighted average shares, basic 62,280,889 61,926,986 61,662,031 Dilutive effect of stock compensation awards (1) 1,456,845 938,460 571,194 Diluted shares 63,737,734 62,865,446 62,233,225 Net income attributable to common shareholders per share Basic $ 5.61 $ 4.09 $ 3.57 Diluted $ 5.48 $ 4.03 $ 3.54 ( 1 Excludes approximately 26,100 stock options for the year ended December 31, 2018, December 31, 2020 2019. |
Note 15 - Income Taxes
Note 15 - Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | 15. Income Taxes The Company’s provision for income taxes consists of the following: Year Ended December 31, 2020 2019 2018 Current: Federal $ 62,714 $ 41,686 $ 32,072 State 13,071 4,211 9,639 Foreign 1,974 2,660 4,546 Total 77,759 48,557 46,257 Deferred: Federal 20,452 19,393 22,225 State 1,243 1,390 1,910 Foreign (1,197 ) (1,263 ) 479 Total 20,498 19,520 24,614 Change in valuation allowance 716 (778 ) (1,015 ) Provision for income taxes $ 98,973 $ 67,299 $ 69,856 The Company files U.S. federal, U.S. state and foreign jurisdiction tax returns which are subject to examination up to the expiration of the statute of limitations. The Company believes the tax positions taken on its returns would be sustained upon an exam, or where a position is uncertain, adequate reserves have been recorded. As of December 31, 2020 no 2017. 2009 2019 2015 2019. The Company is regularly under tax return examination by tax authorities in the various jurisdictions in which we operate. The Company is actively managing the examinations and working to address any open matters. While the Company does not may may Significant components of deferred tax assets and liabilities are as follows: December 31, 2020 2019 Deferred tax assets: Accrued expenses $ 24,358 $ 21,053 Deferred revenue 15,851 14,697 Inventories 11,795 9,879 Stock-based compensation 8,348 7,490 Operating loss and credit carryforwards 31,275 28,356 Bad debt 1,633 1,094 Other 8,558 4,275 Valuation allowance (5,740 ) (5,024 ) Total deferred tax assets 96,078 81,820 Deferred tax liabilities: Goodwill and intangible assets 171,831 142,159 Depreciation 33,716 27,864 Debt refinancing costs 3,544 4,119 Prepaid expenses 1,259 1,073 Total deferred tax liabilities 210,350 175,215 Net deferred tax liabilities $ (114,272 ) $ (93,395 ) As of December 31, 2020 2019 The Company maintains a valuation allowance against the deferred tax assets when it is uncertain it will generate sufficient taxable income to utilize the asset. During 2020 At December 31, 2020 2024 2035. Changes in the Company’s gross liability for unrecognized tax benefits, excluding interest and penalties, were as follows: December 31, 2020 2019 Unrecognized tax benefit, beginning of period $ 6,720 $ 5,635 Increase in unrecognized tax benefit for positions taken in prior period 332 633 Increase in unrecognized tax benefit for positions taken in current period 750 495 Statute of limitation expirations (189 ) (43 ) Settlements - - Unrecognized tax benefit, end of period $ 7,613 $ 6,720 The unrecognized tax benefit as of December 31, 2020 2019 As of December 31, 2020 2019 The Company does not December 31, 2021. A reconciliation of the statutory tax rates and the effective tax rates for the years ended December 31, 2020, 2019 2018 Year Ended December 31, 2020 2019 2018 U.S. statutory rate 21.0 % 21.0 % 21.0 % State taxes 4.3 4.3 4.7 State tax rate differential 0.0 (1.0 ) - Research and development credits (1.1 ) (0.8 ) (1.3 ) State credits (1.5 ) (1.0 ) (1.0 ) Share-based compensation (1) (1.0 ) (0.6 ) (0.5 ) Tax Act impact 0.0 - (0.2 ) Other 0.5 (0.8 ) (0.2 ) Effective tax rate 22.2 % 21.1 % 22.5 % ( 1 With the adoption of ASU 2016 09 2017, |
Note 16 - Benefit Plans
Note 16 - Benefit Plans | 12 Months Ended |
Dec. 31, 2020 | |
Notes to Financial Statements | |
Retirement Benefits [Text Block] | 16. Benefit Plans Medical and Dental Plans The Company maintains medical and dental benefit plans covering its full-time domestic employees and their dependents. These plans are partially or fully self-funded 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 $24,617, $18,290, and $14,660 for the years ended December 31, 2020, 2019 2018 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 Savings Plan The Company maintains a defined-contribution 401 may may first may December 31, 2008 may December 31, 2020 2019 2018 Pension Plans Historically, the Company maintained noncontributory salaried and hourly pension plans (Pension Plans) covering certain domestic employees. The Pension Plans were frozen effective December 31, 2008. December 31, 2018, no In 2019, fourth 2019 401 fourth 2019, fourth December 31, 2019. Certain of the Company’s foreign subsidiaries participate in local statutory 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 other long-term liabilities in the Company’s consolidated balance sheets and are not |
Note 17 - Share Plans
Note 17 - Share Plans | 12 Months Ended |
Dec. 31, 2020 | |
Notes to Financial Statements | |
Share-based Payment Arrangement [Text Block] | 17. Share Plans The Company adopted an equity incentive plan (the 2010 February 10, 2010 2010 2010 2010 June 2019. December 31, 2020, 2019 2018 On June 13, 2019, 2019 2019 2019 no may 2019 2019 2019 December 31, 2020 2019, Stock Options 2020 2019 2018 four ten Stock option exercises can be 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 24,070, 32,211 and 63,817 for the years ended December 31, 2020 2019 2018 Employees can also utilize a cashless for cash exercise of stock options, such that all exercised shares will be sold in the market immediately. Cash equivalent to the exercise price of the awards plus the employees’ minimum statutory tax obligations is remitted to the Company, with the remaining cash being transferred to the employee. Total net proceeds from the cashless for cash exercise of stock options were $13,089, $9,395 and $5,614 for the years ended December 31, 2020 2019 2018 Total payments made by the Company to the taxing authorities for the employees’ tax obligations related to stock option exercises were $7,297, $3,360 and $3,846 for the years ended December 31, 2020 2019 2018 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 volatility of the Company’s stock price. 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 The weighted-average assumptions used in the Black-Scholes-Merton option pricing model for 2020 2019 2018 Year Ended December 31, 2020 2019 2018 Weighted average grant date fair value $ 35.79 $ 19.33 $ 17.86 Assumptions: Expected stock price volatility 32 % 33 % 37 % Risk free interest rate 1.56 % 2.52 % 2.60 % Expected annual dividend per share $ - $ - $ - Expected life of options (years) 6.25 6.25 6.25 A summary of the Company’s stock option activity and related information for the years ended December 31, 2020, 2019 2018 Number of Options Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term (in years) Aggregate Intrinsic Value ($ in thousands) Outstanding as of December 31, 2017 1,472,130 $ 33.11 7.3 $ 25,281 Granted 366,231 43.88 Exercised (267,909 ) 19.90 Forfeited (49,285 ) 43.34 Outstanding as of December 31, 2018 1,521,167 37.70 7.0 $ 19,212 Granted 369,779 52.07 Exercised (263,250 ) 30.75 Forfeited (35,010 ) 43.79 Outstanding as of December 31, 2019 1,592,686 42.04 6.9 $ 93,242 Granted 173,650 102.32 Exercised (216,196 ) 39.88 Forfeited (21,450 ) 50.25 Outstanding as of December 31, 2020 1,528,690 49.08 6.3 $ 272,553 Exercisable as of December 31, 2020 845,365 39.15 4.9 $ 159,145 As of December 31, 2020 December 31, 2020 2019 2018 Restricted Stock three three may 2018 2018 2020, 2019 2019 2021, 2020 2020 2022. Restricted stock vesting is net-share settled such that, upon vesting, the Company withholds shares with value equivalent to the employees’ minimum statutory tax obligation, and then pays the cash to the taxing authorities on behalf of the employees. In effect, the Company repurchases these shares and classifies them as treasury stock. Total shares withheld were 70,718, 55,953 and 38,186 for the years ended December 31, 2020 2019 2018 December 31, 2020 2019 2018 A summary of the Company's restricted stock activity for the years ended December 31, 2020, 2019 2018 Shares Weighted-Average Grant-Date Fair Value Non-vested as of December 31, 2017 392,276 $ 37.77 Granted 208,803 44.49 Vested (128,433 ) 39.03 Forfeited (46,650 ) 39.43 Non-vested as of December 31, 2018 425,996 40.50 Granted 265,255 62.38 Vested (184,628 ) 38.78 Forfeited (14,986 ) 44.23 Non-vested as of December 31, 2019 491,637 52.84 Granted 183,868 95.14 Vested (200,390 ) 45.10 Forfeited (18,921 ) 56.58 Non-vested as of December 31, 2020 456,194 68.42 As of December 31, 2020 December 31, 2020 2019 2018 During 2020 2019 2018 2020 2019 2018 2020 2019 2018 |
Note 18 - Commitments and Conti
Note 18 - Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | 18. Commitments and Contingencies 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 December 31, 2020 2019 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 not |
Note 19 - Quarterly Financial I
Note 19 - Quarterly Financial Information (Unaudited) | 12 Months Ended |
Dec. 31, 2020 | |
Notes to Financial Statements | |
Quarterly Financial Information [Text Block] | 19. Quarterly Financial Information (Unaudited) Quarters in the Year Ended December 31, 2020 Q1 Q2 Q3 Q4 Net sales $ 475,915 $ 546,848 $ 701,355 $ 761,082 Gross profit 172,320 208,983 276,149 300,202 Operating income 62,862 89,553 155,637 171,054 Net income attributable to Generac Holdings Inc. 44,460 66,145 114,970 125,001 Net income attributable to common shareholders per common share - basic: $ 0.69 $ 1.04 $ 1.86 $ 2.02 Net income attributable to common shareholders per common share - diluted: $ 0.68 $ 1.02 $ 1.82 $ 1.97 Quarters in the Year Ended December 31, 2019 Q1 Q2 Q3 Q4 Net sales $ 470,353 $ 541,916 $ 601,135 $ 590,932 Gross profit 162,175 195,838 217,517 222,222 Operating income 71,173 90,926 105,556 104,508 Net income attributable to Generac Holdings Inc. 44,861 61,958 75,574 69,614 Net income attributable to common shareholders per common share - basic: $ 0.77 $ 0.99 $ 1.20 $ 1.14 Net income attributable to common shareholders per common share - diluted: $ 0.76 $ 0.98 $ 1.18 $ 1.12 |
Note 20 - Valuation and Qualify
Note 20 - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2020 | |
Notes to Financial Statements | |
SEC Schedule, 12-09, Schedule of Valuation and Qualifying Accounts Disclosure [Text Block] | 20. Valuation and Qualifying Accounts For the years ended December 31, 2020, 2019 2018 Balance at Beginning of Year Additions Charged to Earnings Additions Charged to Retained Earnings (1) Charges to Reserve, Net (2) Reserves Established for Acquisitions Balance at End of Year Year ended December 31, 2020 Allowance for credit losses $ 6,968 $ 4,645 $ 1,147 $ (957 ) $ 198 $ 12,001 Reserves for inventory 24,293 11,353 - (8,788 ) 959 27,817 Valuation of deferred tax assets 5,024 716 - - - 5,740 Year ended December 31, 2019 Allowance for credit losses $ 4,873 $ 3,086 $ - $ (1,033 ) $ 42 $ 6,968 Reserves for inventory 23,140 4,821 - (3,867 ) 199 24,293 Valuation of deferred tax assets 5,802 - - - (778 ) 5,024 Year ended December 31, 2018 Allowance for credit losses $ 4,805 $ 1,941 $ - $ (2,123 ) $ 250 $ 4,873 Reserves for inventory 15,987 10,004 - (3,720 ) 869 23,140 Valuation of deferred tax assets 6,817 478 - - (1,493 ) 5,802 ( 1 Result of adopting ASU 2016 13, Financial Instruments – Credit Losses (Topic 326 Measurement of Credit Losses on Financial Instruments. ( 2 Deductions from the allowance for doubtful accounts equal accounts receivable written off against the allowance, less recoveries, as well as foreign currency translation adjustments. Deductions from the reserves for inventory excess and obsolete items equal inventory written off against the reserve as items were disposed of, as well as foreign currency translation adjustments. |
Note 21 - Subsequent Events
Note 21 - Subsequent Events | 12 Months Ended |
Dec. 31, 2020 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | 21. Subsequent Events The Company performed an evaluation of subsequent events through the date these financial statements were issued and no |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Consolidation, Policy [Policy Text Block] | Principles of Consolidation The consolidated financial statements include the accounts of the Company and its subsidiaries that are consolidated in conformity with U.S. GAAP. 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 |
Concentration Risk, Credit Risk, Policy [Policy Text Block] | Concentration of Credit Risk The Company maintains the majority of its domestic cash in a few commercial banks 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 13% and 9% of accounts receivable at December 31, 2020 2019 No one December 31, 2020 2019 2018 |
Receivable [Policy Text Block] | Accounts Receivable and Allowance for Credit Losses The Company's trade and other receivables primarily arise from the sale of our products to independent residential dealers, industrial distributors and dealers, national and regional retailers, electrical/HVAC/solar wholesalers, e-commerce partners, equipment rental companies, equipment distributors, solar installers, utilities, and certain end users with payment terms generally ranging from 30 90 may Receivables are recorded at their face value amount less an allowance for credit losses. The Company maintains an allowance for credit losses, which represents an estimate of expected losses over the remaining contractual life of its receivables considering current market conditions and estimates for supportable forecasts when appropriate. The Company measures expected credit losses on its trade receivables on an entity by entity basis. The estimate of expected credit losses considers a historical loss experience rate that is adjusted for delinquency trends, collection experience, and/or economic risk where appropriate based on current market conditions. Additionally, management develops a specific allowance for trade receivables known to have a high risk of expected future credit loss. The Company has historically experienced immaterial write-offs given the nature of the customers that receive credit. In addition, the Company holds a credit insurance plan that covers the risk of loss up to specified amounts on certain trade receivables. As of December 31, 2020, The following is a tabular reconciliation of the Company's allowance for credit losses: Year Ended December 31, 2020 Balance at beginning of period $ 6,968 Adoption of ASU 2016-13 1,147 Established for Acquisitions 198 Provision for credit losses 4,645 Charge-offs (1,448 ) Currency translation 491 Balance at end of period $ 12,001 |
Inventory, Policy [Policy Text Block] | Inventories Inventories are stated at the lower of cost or market, with cost determined generally using the first first |
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. Finance lease right of use assets are included in property and equipment. Refer to Note 10, Land improvements 8 – 20 Buildings and improvements 10 – 40 Machinery and equipment 3 – 15 Dies and tools 3 – 10 Vehicles 3 – 6 Office equipment and systems 3 – 15 Leasehold improvements 2 – 20 Total depreciation expense was $36,493, $32,265, and $25,296 for the years ended December 31, 2020, 2019 2018 |
Goodwill and Intangible Assets, Goodwill, 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 October 31 may not not not not not not not Other indefinite-lived intangible assets consist of certain tradenames. The Company tests the carrying value of these tradenames annually as of October 31, may not not The Company performed the required annual impairment tests for goodwill and other indefinite-lived intangible assets for the fiscal years 2020 2019 2018 no |
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 |
Debt, Policy [Policy Text Block] | Debt Issuance Costs Debt discounts and direct costs incurred in connection with the issuance or amendment 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. $2,598, $4,712, and $4,749 of deferred financing costs and original issue discount were amortized to interest expense during fiscal years 2020 2019 2018 five 2021 $2,640; 2022 $2,689; 2023 $2,579; 2024 $2,508; 2025 $2,555. |
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 not |
Revenue from Contract with Customer [Policy Text Block] | Revenue Recognition not one not not one not At the request of certain customers, the Company will warehouse inventory billed to the customer but not not While the Company’s standard payment terms are less than one December 31, 2020 December 31, 2019 December 31, 2020 December 31, 2019 one The Company offers standard warranty coverage on substantially all products that it sells and accounts for this standard warranty coverage as an assurance warranty. As such, no 11, The Company also sells extended warranty coverage for certain products, which it accounts for as service warranties. In most cases, the extended warranty is sold as a separate contract. As such, extended warranty sales are considered a separate performance obligation, and the extended warranty transaction is separate and distinct from the product. The extended warranty transaction price is initially recorded as deferred revenue in the consolidated balance sheets and amortized on a straight-line basis to net sales in the consolidated statements of comprehensive income over the life of the contracts following the standard warranty period. For extended warranty contracts that the Company sells under a third third 11, In addition to extended warranties, the Company offers other services, including remote monitoring, installation, maintenance and grid services in certain circumstances. Total service revenues accounted for less than two December 31, 2020 Refer to Note 7, |
Advertising Cost [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. Expenditures for advertising production costs are expensed when the related advertisement is first December 31, 2020, 2019 2018 |
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 $80,251, $68,394, and $50,019 for the years ended December 31, 2020, 2019 2018 |
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 U.S. Dollars at the rates of exchange in effect at the end of the fiscal year. 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 ASC 820 10, Fair Value Measurement , 820 10 three 1 2 3 no 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 $815,260, was approximately $831,038 (Level 2 December 31, 2020 For the fair value of the assets and liabilities measured on a recurring basis, refer to the fair value table in Note 5, 2. 820 10. |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the 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 , not 7A 10 |
Share-based Payment Arrangement [Policy Text Block] | S hare -Based Compensation Share-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. Refer to Note 17, |
New Accounting Pronouncements, Policy [Policy Text Block] | New Accounting Pronouncements Changes to GAAP are established by the Financial Accounting Standards Board (FASB) in the form of accounting standard updates (“ASUs”) to the FASB Accounting Standards Codification (ASC). ASUs not not not Recently Adopted Accounting Standards On January 1, 2020 , 2016 13 , Financial Instruments – Credit Losses (Topic 326 Measurement of Credit Losses on Financial Instruments no 2016 13. January 1, 2020 326 2 On January 1, 2020, 2020 04, Reference Rate Reform. |
Note 2 - Summary of Accountin_2
Note 2 - Summary of Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Notes Tables | |
Accounts Receivable, Allowance for Credit Loss [Table Text Block] | Year Ended December 31, 2020 Balance at beginning of period $ 6,968 Adoption of ASU 2016-13 1,147 Established for Acquisitions 198 Provision for credit losses 4,645 Charge-offs (1,448 ) Currency translation 491 Balance at end of period $ 12,001 |
Property Plant and Equipment, Estimated Useful Lives [Table Text Block] | Land improvements 8 – 20 Buildings and improvements 10 – 40 Machinery and equipment 3 – 15 Dies and tools 3 – 10 Vehicles 3 – 6 Office equipment and systems 3 – 15 Leasehold improvements 2 – 20 |
Note 3 - Acquisitions (Tables)
Note 3 - Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Notes Tables | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | Year Ended December 31, 2020 2019 2018 Accounts receivable $ 5,151 $ 4,643 $ 14,302 Inventories 3,711 4,313 8,000 Prepaid expenses and other assets 897 304 4,323 Property and equipment 635 384 5,572 Intangible assets 26,057 79,200 33,631 Goodwill 42,698 41,428 46,196 Deferred income taxes - 3,217 3,252 Other assets 1,122 133 597 Total assets acquired 80,271 133,622 115,873 Accounts payable 4,088 4,380 7,216 Accrued wages and employee benefits 700 4,408 397 Other accrued liabilities 2,151 602 13,671 Current portion of long-term debt - 937 - Deferred income taxes 4,134 9,958 10,974 Other long-term liabilities 4,401 778 3,643 Redeemable non-controlling interest - 3,165 - Net assets acquired $ 64,797 $ 109,394 $ 79,972 |
Business Acquisition, Pro Forma Information, Nonrecurring Adjustments [Table Text Block] | Year Ended December 31, 2020 2019 2018 Net Sales: As reported $ 2,485,200 $ 2,204,336 $ 2,023,464 Pro forma 2,512,017 2,242,710 2,093,112 Net income attributable to Generac Holdings Inc.: As reported $ 350,576 $ 252,007 $ 238,257 Pro forma 339,317 239,925 220,555 Net income attributable to Generac Holdings Inc. per common share - diluted As reported $ 5.48 $ 4.03 $ 3.54 Pro forma 5.34 3.84 3.26 |
Note 4 - Redeemable Noncontro_2
Note 4 - Redeemable Noncontrolling Interest (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Notes Tables | |
Redeemable Noncontrolling Interest [Table Text Block] | Year Ended December 31, 2020 2019 2018 Balance at beginning of period $ 61,227 $ 61,004 $ 43,929 Noncontrolling interest - 3,165 (1) - Net income (2,829 ) 75 2,214 Foreign currency translation 6,562 (1,764 ) (3,109 ) Redemption value adjustment 1,247 (1,253 ) 17,970 Balance at end of period $ 66,207 $ 61,227 $ 61,004 |
Note 5 - Derivative Instrumen_2
Note 5 - Derivative Instruments and Hedging Activities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Notes Tables | |
Schedule Of Derivative Assets (Liabilities) at Fair Value [Table Text Block] | December 31, December 31, Commodity contracts $ 1,386 $ 6 Foreign currency contracts (154 ) 31 Interest rate swaps (29,536 ) (10,425 ) |
Note 6 - Accumulated Other Co_2
Note 6 - Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 $ (16,622 ) $ - $ (8,295 ) $ (24,917 ) Other comprehensive income (loss) before reclassifications 4,948 - (14,285 ) (1) (9,337 ) Amounts reclassified from AOCL - - - - Net current-period other comprehensive income (loss) 4,948 - (14,285 ) (9,337 ) Ending Balance – December 31, 2020 $ (11,674 ) $ - $ (22,580 ) $ (34,254 ) Foreign Currency Translation Adjustments Defined Benefit Pension Plan Unrealized Gain (Loss) on Cash Flow Hedges Total Beginning Balance – January 1, 2019 $ (18,832 ) $ (10,541 ) $ 5,560 $ (23,813 ) Other comprehensive income (loss) before reclassifications 2,210 1,474 (2) (13,855 ) (3) (10,171 ) Amounts reclassified from AOCL - 9,067 (4) - 9,067 Net current-period other comprehensive income (loss) 2,210 10,541 (13,855 ) (1,104 ) Ending Balance – December 31, 2019 $ (16,622 ) $ - $ (8,295 ) $ (24,917 ) |
Reclassification out of Accumulated Other Comprehensive Income [Table Text Block] | Amounts reclassified from AOCL Loss on pension settlement $ 10,920 Amortization of net loss 843 Total before tax 11,763 Income tax impact (2,696 ) Amounts reclassified from AOCL during 2019 $ 9,067 |
Note 7 - Segment Reporting (Tab
Note 7 - Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Notes Tables | |
Disaggregation of Revenue [Table Text Block] | Net Sales by Segment Year Ended December 31, 2020 Product Classes Domestic International Total Residential products $ 1,495,383 $ 61,118 $ 1,556,501 Commercial & industrial products 404,867 296,884 701,751 Other 188,558 38,390 226,948 Total net sales $ 2,088,808 $ 396,392 $ 2,485,200 Year Ended December 31, 2019 Product Classes Domestic International Total Residential products $ 1,086,019 $ 57,704 $ 1,143,723 Commercial & industrial products 513,482 358,113 871,595 Other 143,397 45,621 189,018 Total net sales $ 1,742,898 $ 461,438 $ 2,204,336 Year Ended December 31, 2018 Product Classes Domestic International Total Residential products $ 980,707 $ 62,032 $ 1,042,739 Commercial & industrial products 461,415 358,855 820,270 Other 124,398 36,057 160,455 Total net sales $ 1,566,520 $ 456,944 $ 2,023,464 |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Adjusted EBITDA Year Ended December 31, 2020 2019 2018 Domestic $ 563,394 $ 428,667 $ 388,495 International 20,379 25,448 36,057 Total adjusted EBITDA $ 583,773 $ 454,115 $ 424,552 Interest expense (32,991 ) (41,544 ) (40,956 ) Depreciation and amortization (68,773 ) (60,767 ) (47,408 ) Non-cash write-down and other adjustments (1) 327 (240 ) (3,532 ) Non-cash share-based compensation expense (2) (20,882 ) (16,694 ) (14,563 ) Loss on extinguishment of debt (3) - (926 ) (1,332 ) Loss on pension settlement (4) - (10,920 ) - Transaction costs and credit facility fees (5) (2,151 ) (2,724 ) (3,883 ) Business optimization and other charges (6) (12,158 ) (1,572 ) (952 ) Other (954 ) 879 (850 ) Income before provision for income taxes $ 446,191 $ 319,607 $ 311,076 Assets Year Ended December 31, 2020 2019 2018 Domestic $ 2,659,597 $ 2,123,251 $ 1,868,554 International 575,826 542,418 557,760 Total $ 3,235,423 $ 2,665,669 $ 2,426,314 Depreciation and Amortization Year Ended December 31, 2020 2019 2018 Domestic $ 53,020 $ 46,145 $ 35,586 International 15,753 14,764 11,822 Total $ 68,773 $ 60,909 $ 47,408 Capital Expenditures Year Ended December 31, 2020 2019 2018 Domestic $ 51,867 $ 36,007 $ 38,242 International 10,261 24,795 9,359 Total $ 62,128 $ 60,802 $ 47,601 |
Note 8 - Balance Sheet Details
Note 8 - Balance Sheet Details (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | December 31, 2020 2019 Raw material $ 375,516 $ 328,021 Work-in-process 6,833 10,387 Finished goods 220,968 183,616 Total $ 603,317 $ 522,024 |
Property, Plant and Equipment [Table Text Block] | December 31, 2020 2019 Land and improvements $ 18,363 $ 18,252 Buildings and improvements 198,908 177,079 Machinery and equipment 153,696 117,114 Dies and tools 24,190 22,040 Vehicles 6,037 3,955 Office equipment and systems 107,923 99,124 Leasehold improvements 5,276 4,293 Construction in progress 30,227 36,299 Gross property and equipment 544,620 478,156 Accumulated depreciation (200,684 ) (161,180 ) Total $ 343,936 $ 316,976 |
Note 9 - Goodwill and Intangi_2
Note 9 - Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Notes Tables | |
Schedule of Goodwill [Table Text Block] | Domestic International Total Balance at December 31, 2018 $ 621,451 $ 143,204 $ 764,655 Acquisitions of businesses, net 37,758 3,078 40,836 Foreign currency translation - (207 ) (207 ) Balance at December 31, 2019 659,209 146,075 805,284 Acquisitions of businesses, net 42,722 - 42,722 Foreign currency translation 604 6,618 7,222 Balance at December 31, 2020 $ 702,535 $ 152,693 $ 855,228 December 31, 2020 December 31, 2019 Gross Accumulated Impairment Net Gross Accumulated Impairment Net Domestic $ 1,205,728 $ (503,193 ) $ 702,535 $ 1,162,402 $ (503,193 ) $ 659,209 International 157,304 (4,611 ) 152,693 150,686 (4,611 ) 146,075 Total $ 1,363,032 $ (507,804 ) $ 855,228 $ 1,313,088 $ (507,804 ) $ 805,284 |
Schedule Of Intangible Assets [Table Text Block] | Weighted Average December 31, 2020 December 31, 2019 Amortization Years Gross Accumulated Amortization Net Book Value Gross Accumulated Amortization Net Book Value Finite-lived intangible assets: Tradenames 9 $ 58,729 $ (40,891 ) $ 17,838 $ 56,669 $ (36,613 ) $ 20,056 Customer lists 12 370,736 (321,531 ) 49,205 369,932 (314,380 ) 55,552 Patents and technology 10 233,271 (146,544 ) 86,727 213,972 (128,426 ) 85,546 Software - 1,046 (1,046 ) - 1,046 (1,046 ) - Non-compete/other 4 16,469 (6,537 ) 9,932 12,063 (3,804 ) 8,259 Total finite-lived intangible assets $ 680,251 $ (516,549 ) $ 163,702 $ 653,682 $ (484,269 ) $ 169,413 Indefinite-lived tradenames 128,321 - 128,321 128,321 - 128,321 Total intangible assets $ 808,572 $ (516,549 ) $ 292,023 $ 782,003 $ (484,269 ) $ 297,734 |
Note 10 - Leases (Tables)
Note 10 - Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Notes Tables | |
Lease, Cost [Table Text Block] | Year Ended December 31, 2020 Year Ended December 31, 2019 Operating lease cost $ 18,648 $ 9,647 Finance lease cost: Amortization of ROU assets 2,587 2,531 Interest on lease liabilities 2,237 2,227 Total lease cost $ 23,472 $ 14,405 |
Schedule of Components of Lease Assets and Liabilities [Table Text Block] | December 31, 2020 December 31, 2019 Operating Leases Operating lease ROU assets (1) $ 62,030 $ 35,950 Operating lease liabilities - current (2) $ 17,192 $ 7,231 Operating lease liabilities - noncurrent (3) 46,558 29,778 Total operating lease liabilities $ 63,750 $ 37,009 Finance Leases Finance lease ROU assets, gross $ 34,929 $ 29,142 Accumulated depreciation - finance lease ROU assets (7,660 ) (3,079 ) Finance lease ROU assets, net (4) $ 27,269 $ 26,063 Finance lease liabilities - current (5) $ 2,311 $ 1,830 Finance lease liabilities - noncurrent (6) 25,060 24,132 Total finance lease liabilities $ 27,371 $ 25,962 |
Schedule of Leases Cash Flow Information [Table Text Block] | Year Ended December 31, 2020 Year Ended December 31, 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 18,412 $ 10,125 Operating cash flows from finance leases 1,871 1,864 Financing cash flows from finance leases 3,957 3,237 ROU assets obtained in exchange for lease liabilities Operating leases 41,678 4,021 Finance leases 3,737 8,797 |
Lease, Term and Discount Rate [Table Text Block] | Weighted average remaining lease term (in years) Operating Leases 4.92 Finance Leases 12.90 Weighted average discount rate Operating Leases 4.48 % Finance Leases 7.66 % |
Operating and Finance Lease, Liability, Maturity [Table Text Block] | Finance Leases Operating Leases 2021 $ 4,146 $ 19,530 2022 4,292 18,135 2023 3,112 9,519 2024 2,999 7,452 2025 2,678 5,359 After 2025 28,596 11,711 Total minimum lease payments 45,823 71,706 Interest component (18,452 ) (7,956 ) Present value of minimum lease payments $ 27,371 $ 63,750 |
Note 11 - Product Warranty Ob_2
Note 11 - Product Warranty Obligations (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Notes Tables | |
Schedule of Product Warranty Liability [Table Text Block] | Year Ended December 31, 2020 2019 2018 Balance at beginning of period $ 49,316 $ 41,785 $ 35,422 Product warranty reserve assumed in acquisition 124 1,062 - Payments (33,496 ) (26,096 ) (20,029 ) Provision for warranty issued 42,093 32,060 26,910 Changes in estimates for pre-existing warranties 1,181 505 (518 ) Balance at end of period $ 59,218 $ 49,316 $ 41,785 Year Ended December 31, 2020 2019 2018 Balance at beginning of period $ 78,738 $ 68,340 $ 57,854 Deferred revenue contracts issued 26,968 24,483 21,440 Amortization of deferred revenue contracts (15,918 ) (14,085 ) (10,954 ) Balance at end of period $ 89,788 $ 78,738 $ 68,340 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Table Text Block] | 2021 $ 18,754 2022 18,819 2023 16,464 2024 11,849 After 2024 23,902 Total $ 89,788 |
Product Warranty Obligations Included In Consolidated Balance Sheet [Table Text Block] | December 31, 2020 2019 Product warranty liability Current portion - other accrued liabilities $ 37,417 $ 27,885 Long-term portion - other long-term liabilities 21,801 21,431 Total $ 59,218 $ 49,316 Deferred revenue related to extended warranties Current portion - other accrued liabilities $ 18,857 $ 15,519 Long-term portion - other long-term liabilities 70,931 63,219 Total $ 89,788 $ 78,738 |
Note 12 - Credit Agreements (Ta
Note 12 - Credit Agreements (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Notes Tables | |
Schedule of Short-term Debt [Table Text Block] | December 31, 2020 2019 ABL facility $ - $ 30,961 Other lines of credit 39,282 27,753 Total $ 39,282 $ 58,714 |
Schedule of Long-term Debt Instruments [Table Text Block] | December 31, 2020 2019 Term loan $ 830,000 $ 830,000 Original issue discount and deferred financing costs (15,450 ) (18,048 ) ABL facility - - Finance lease obligation 27,371 25,962 Other 3,990 2,236 Total 845,911 840,150 Less: current portion of debt 1,836 553 Less: current portion of finance lease obligation 2,311 1,830 Total $ 841,764 $ 837,767 |
Schedule of Maturities of Long-term Debt [Table Text Block] | 2021 $ 1,836 2022 1,905 2023 46 2024 115 After 2024 830,088 Total $ 833,990 |
Note 14 - Earnings Per Share (T
Note 14 - Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Year Ended December 31, 2020 2019 2018 Numerator Net income attributable to Generac Holdings Inc. $ 350,576 $ 252,007 $ 238,257 Redeemable noncontrolling interest redemption value adjustment (1,247 ) 1,253 (17,970 ) Net income attributable to common shareholders $ 349,329 $ 253,260 $ 220,287 Denominator Weighted average shares, basic 62,280,889 61,926,986 61,662,031 Dilutive effect of stock compensation awards (1) 1,456,845 938,460 571,194 Diluted shares 63,737,734 62,865,446 62,233,225 Net income attributable to common shareholders per share Basic $ 5.61 $ 4.09 $ 3.57 Diluted $ 5.48 $ 4.03 $ 3.54 |
Note 15 - Income Taxes (Tables)
Note 15 - Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Notes Tables | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | Year Ended December 31, 2020 2019 2018 Current: Federal $ 62,714 $ 41,686 $ 32,072 State 13,071 4,211 9,639 Foreign 1,974 2,660 4,546 Total 77,759 48,557 46,257 Deferred: Federal 20,452 19,393 22,225 State 1,243 1,390 1,910 Foreign (1,197 ) (1,263 ) 479 Total 20,498 19,520 24,614 Change in valuation allowance 716 (778 ) (1,015 ) Provision for income taxes $ 98,973 $ 67,299 $ 69,856 |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | December 31, 2020 2019 Deferred tax assets: Accrued expenses $ 24,358 $ 21,053 Deferred revenue 15,851 14,697 Inventories 11,795 9,879 Stock-based compensation 8,348 7,490 Operating loss and credit carryforwards 31,275 28,356 Bad debt 1,633 1,094 Other 8,558 4,275 Valuation allowance (5,740 ) (5,024 ) Total deferred tax assets 96,078 81,820 Deferred tax liabilities: Goodwill and intangible assets 171,831 142,159 Depreciation 33,716 27,864 Debt refinancing costs 3,544 4,119 Prepaid expenses 1,259 1,073 Total deferred tax liabilities 210,350 175,215 Net deferred tax liabilities $ (114,272 ) $ (93,395 ) |
Schedule of Unrecognized Tax Benefits Roll Forward [Table Text Block] | December 31, 2020 2019 Unrecognized tax benefit, beginning of period $ 6,720 $ 5,635 Increase in unrecognized tax benefit for positions taken in prior period 332 633 Increase in unrecognized tax benefit for positions taken in current period 750 495 Statute of limitation expirations (189 ) (43 ) Settlements - - Unrecognized tax benefit, end of period $ 7,613 $ 6,720 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | Year Ended December 31, 2020 2019 2018 U.S. statutory rate 21.0 % 21.0 % 21.0 % State taxes 4.3 4.3 4.7 State tax rate differential 0.0 (1.0 ) - Research and development credits (1.1 ) (0.8 ) (1.3 ) State credits (1.5 ) (1.0 ) (1.0 ) Share-based compensation (1) (1.0 ) (0.6 ) (0.5 ) Tax Act impact 0.0 - (0.2 ) Other 0.5 (0.8 ) (0.2 ) Effective tax rate 22.2 % 21.1 % 22.5 % |
Note 17 - Share Plans (Tables)
Note 17 - Share Plans (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Notes Tables | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | Year Ended December 31, 2020 2019 2018 Weighted average grant date fair value $ 35.79 $ 19.33 $ 17.86 Assumptions: Expected stock price volatility 32 % 33 % 37 % Risk free interest rate 1.56 % 2.52 % 2.60 % Expected annual dividend per share $ - $ - $ - Expected life of options (years) 6.25 6.25 6.25 |
Share-based Payment Arrangement, Option, 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, 2017 1,472,130 $ 33.11 7.3 $ 25,281 Granted 366,231 43.88 Exercised (267,909 ) 19.90 Forfeited (49,285 ) 43.34 Outstanding as of December 31, 2018 1,521,167 37.70 7.0 $ 19,212 Granted 369,779 52.07 Exercised (263,250 ) 30.75 Forfeited (35,010 ) 43.79 Outstanding as of December 31, 2019 1,592,686 42.04 6.9 $ 93,242 Granted 173,650 102.32 Exercised (216,196 ) 39.88 Forfeited (21,450 ) 50.25 Outstanding as of December 31, 2020 1,528,690 49.08 6.3 $ 272,553 Exercisable as of December 31, 2020 845,365 39.15 4.9 $ 159,145 |
Share-based Payment Arrangement, Restricted Stock Unit, Activity [Table Text Block] | Shares Weighted-Average Grant-Date Fair Value Non-vested as of December 31, 2017 392,276 $ 37.77 Granted 208,803 44.49 Vested (128,433 ) 39.03 Forfeited (46,650 ) 39.43 Non-vested as of December 31, 2018 425,996 40.50 Granted 265,255 62.38 Vested (184,628 ) 38.78 Forfeited (14,986 ) 44.23 Non-vested as of December 31, 2019 491,637 52.84 Granted 183,868 95.14 Vested (200,390 ) 45.10 Forfeited (18,921 ) 56.58 Non-vested as of December 31, 2020 456,194 68.42 |
Note 19 - Quarterly Financial_2
Note 19 - Quarterly Financial Information (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Notes Tables | |
Quarterly Financial Information [Table Text Block] | Quarters in the Year Ended December 31, 2020 Q1 Q2 Q3 Q4 Net sales $ 475,915 $ 546,848 $ 701,355 $ 761,082 Gross profit 172,320 208,983 276,149 300,202 Operating income 62,862 89,553 155,637 171,054 Net income attributable to Generac Holdings Inc. 44,460 66,145 114,970 125,001 Net income attributable to common shareholders per common share - basic: $ 0.69 $ 1.04 $ 1.86 $ 2.02 Net income attributable to common shareholders per common share - diluted: $ 0.68 $ 1.02 $ 1.82 $ 1.97 Quarters in the Year Ended December 31, 2019 Q1 Q2 Q3 Q4 Net sales $ 470,353 $ 541,916 $ 601,135 $ 590,932 Gross profit 162,175 195,838 217,517 222,222 Operating income 71,173 90,926 105,556 104,508 Net income attributable to Generac Holdings Inc. 44,861 61,958 75,574 69,614 Net income attributable to common shareholders per common share - basic: $ 0.77 $ 0.99 $ 1.20 $ 1.14 Net income attributable to common shareholders per common share - diluted: $ 0.76 $ 0.98 $ 1.18 $ 1.12 |
Note 20 - Valuation and Quali_2
Note 20 - Valuation and Qualifying Accounts (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Notes Tables | |
Valuation and Qualifying Accounts [Table Text Block] | Balance at Beginning of Year Additions Charged to Earnings Additions Charged to Retained Earnings (1) Charges to Reserve, Net (2) Reserves Established for Acquisitions Balance at End of Year Year ended December 31, 2020 Allowance for credit losses $ 6,968 $ 4,645 $ 1,147 $ (957 ) $ 198 $ 12,001 Reserves for inventory 24,293 11,353 - (8,788 ) 959 27,817 Valuation of deferred tax assets 5,024 716 - - - 5,740 Year ended December 31, 2019 Allowance for credit losses $ 4,873 $ 3,086 $ - $ (1,033 ) $ 42 $ 6,968 Reserves for inventory 23,140 4,821 - (3,867 ) 199 24,293 Valuation of deferred tax assets 5,802 - - - (778 ) 5,024 Year ended December 31, 2018 Allowance for credit losses $ 4,805 $ 1,941 $ - $ (2,123 ) $ 250 $ 4,873 Reserves for inventory 15,987 10,004 - (3,720 ) 869 23,140 Valuation of deferred tax assets 6,817 478 - - (1,493 ) 5,802 |
Note 2 - Summary of Accountin_3
Note 2 - Summary of Accounting Policies (Details Textual) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Jan. 01, 2020USD ($) | |
Accounts Receivable, before Allowance for Credit Loss | $ 386,907 | |||
Accounts Receivable, Allowance for Credit Loss, Ending Balance | 12,001 | $ 6,968 | ||
Depreciation, Total | 36,493 | 32,265 | $ 25,296 | |
Goodwill and Intangible Asset Impairment, Total | 0 | 0 | 0 | |
Amortization of Financing Costs and Debt Discount Premium | 2,598 | 4,712 | 4,749 | |
Deferred Costs Amortization Expense, Next Twelve Months | 2,640 | |||
Deferred Costs Amortization Expense, Year Two | 2,689 | |||
Deferred Costs Amortization Expense, Year Three | 2,579 | |||
Contract with Customer, Liability, Total | 25,710 | 9,952 | ||
Contract with Customer, Liability, Revenue Recognized | 8,703 | |||
Advertising Expense | 53,678 | 44,153 | 34,792 | |
Research and Development Expense, Total | 80,251 | 68,394 | $ 50,019 | |
Retained Earnings (Accumulated Deficit), Ending Balance | 1,432,565 | $ 1,084,383 | ||
Deferred Costs Amortization Expense, Year Four | 2,508 | |||
Deferred Costs Amortization Expense, Year Five | 2,555 | |||
Accounting Standards Update 2016-13 [Member] | ||||
Retained Earnings (Accumulated Deficit), Ending Balance | $ (1,147) | |||
Fair Value, Inputs, Level 2 [Member] | ||||
Debt Instrument, Fair Value Disclosure, Total | 831,038 | |||
Term Loan [Member] | ||||
Long-term Debt, Total | $ 815,260 | |||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | ||||
Concentration Risk, Percentage | 13.00% | 9.00% | ||
Number of Major Customers | 1 | 1 | ||
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | ||||
Concentration Risk, Percentage | 6.00% | 5.00% | 6.00% | |
Number of Major Customers | 0 | 0 | 0 |
Note 2 - Summary of Accountin_4
Note 2 - Summary of Accounting Policies - Summary of Allowance for Doubtful Accounts (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Balance | $ 6,968 |
Adoption of ASU 2016-13 | 1,147 |
Established for Acquisitions | 198 |
Provision for credit losses | 4,645 |
Charge-offs | (1,448) |
Currency translation | 491 |
Balance | $ 12,001 |
Note 2 - Summary of Accountin_5
Note 2 - Summary of Accounting Policies - Property and Equipment Estimated Useful Lives (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Land Improvements [Member] | Minimum [Member] | |
Property and equipment, estimated useful lives (Year) | 8 years |
Land Improvements [Member] | Maximum [Member] | |
Property and equipment, estimated useful lives (Year) | 20 years |
Building and Building Improvements [Member] | Minimum [Member] | |
Property and equipment, estimated useful lives (Year) | 10 years |
Building and Building Improvements [Member] | Maximum [Member] | |
Property and equipment, estimated useful lives (Year) | 40 years |
Machinery and Equipment [Member] | Minimum [Member] | |
Property and equipment, estimated useful lives (Year) | 3 years |
Machinery and Equipment [Member] | Maximum [Member] | |
Property and equipment, estimated useful lives (Year) | 15 years |
Dies and Tools [Member] | Minimum [Member] | |
Property and equipment, estimated useful lives (Year) | 3 years |
Dies and Tools [Member] | Maximum [Member] | |
Property and equipment, estimated useful lives (Year) | 10 years |
Vehicles [Member] | Minimum [Member] | |
Property and equipment, estimated useful lives (Year) | 3 years |
Vehicles [Member] | Maximum [Member] | |
Property and equipment, estimated useful lives (Year) | 6 years |
Office Equipment [Member] | Minimum [Member] | |
Property and equipment, estimated useful lives (Year) | 3 years |
Office Equipment [Member] | Maximum [Member] | |
Property and equipment, estimated useful lives (Year) | 15 years |
Leasehold Improvements [Member] | Minimum [Member] | |
Property and equipment, estimated useful lives (Year) | 2 years |
Leasehold Improvements [Member] | Maximum [Member] | |
Property and equipment, estimated useful lives (Year) | 20 years |
Note 3 - Acquisitions (Details
Note 3 - Acquisitions (Details Textual) - USD ($) $ in Thousands | Oct. 07, 2020 | Apr. 26, 2019 | Mar. 12, 2019 | Jun. 01, 2018 | Sep. 30, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Payments to Acquire Businesses, Net of Cash Acquired, Total | $ 64,797 | $ 112,001 | $ 65,440 | |||||
Goodwill, Ending Balance | 855,228 | 805,284 | 764,655 | |||||
Acquisition of Enbala [Member] | ||||||||
Payments to Acquire Businesses, Net of Cash Acquired, Total | $ 41,982 | |||||||
Business Acquisition, Purchase Price Allocation, Intangible Assets Including Goodwill | 46,645 | |||||||
Goodwill, Ending Balance | $ 27,545 | |||||||
Neurio [Member] | ||||||||
Payments to Acquire Businesses, Net of Cash Acquired, Total | $ 59,071 | $ 7,922 | 22,815 | |||||
Business Acquisition, Purchase Price Allocation, Intangible Assets Including Goodwill | 58,762 | |||||||
Goodwill, Ending Balance | $ 17,862 | |||||||
Pika [Member] | ||||||||
Payments to Acquire Businesses, Net of Cash Acquired, Total | $ 49,068 | |||||||
Business Acquisition, Purchase Price Allocation, Intangible Assets Including Goodwill | 58,196 | |||||||
Goodwill, Ending Balance | $ 19,896 | |||||||
Selmec [Member] | ||||||||
Payments to Acquire Businesses, Net of Cash Acquired, Total | $ 79,972 | |||||||
Business Acquisition, Purchase Price Allocation, Intangible Assets Including Goodwill | 79,827 | |||||||
Goodwill, Ending Balance | 46,196 | $ 46,196 | ||||||
Business Combination, Liabilities Arising from Contingencies, Amount Recognized | $ 14,902 | |||||||
Business Combination, Liabilities Arising from Contingencies, Changes in Fair Value | (2,241) | (977) | ||||||
Business Combination, Liabilities Arising from Contingencies, Interest Accretion | 536 | 2,740 | ||||||
Business Combination, Liabilities Arising from Contingencies, Other Fair Value Re-measurement Adjustments | $ (2,777) | $ (3,717) |
Note 3 - Acquisitions - Prelimi
Note 3 - Acquisitions - Preliminary Price Allocation (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Jun. 01, 2018 |
Goodwill | $ 855,228 | $ 805,284 | $ 764,655 | |
The 2020 Acquisitions [Member] | ||||
Accounts receivable | 5,151 | |||
Inventories | 3,711 | |||
Prepaid expenses and other assets | 897 | |||
Property and equipment | 635 | |||
Intangible assets | 26,057 | |||
Goodwill | 42,698 | |||
Deferred income taxes | 0 | |||
Other assets | 1,122 | |||
Total assets acquired | 80,271 | |||
Accounts payable | 4,088 | |||
Accrued wages and employee benefits | 700 | |||
Other accrued liabilities | 2,151 | |||
Current portion of long-term debt | 0 | |||
Deferred income taxes | 4,134 | |||
Other long-term liabilities | 4,401 | |||
Redeemable non-controlling interest | 0 | |||
Net assets acquired | $ 64,797 | |||
The 2019 Acquisitions [Member] | ||||
Accounts receivable | 4,643 | |||
Inventories | 4,313 | |||
Prepaid expenses and other assets | 304 | |||
Property and equipment | 384 | |||
Intangible assets | 79,200 | |||
Goodwill | 41,428 | |||
Deferred income taxes | 3,217 | |||
Other assets | 133 | |||
Total assets acquired | 133,622 | |||
Accounts payable | 4,380 | |||
Accrued wages and employee benefits | 4,408 | |||
Other accrued liabilities | 602 | |||
Current portion of long-term debt | 937 | |||
Deferred income taxes | 9,958 | |||
Other long-term liabilities | 778 | |||
Redeemable non-controlling interest | 3,165 | |||
Net assets acquired | $ 109,394 | |||
Selmec [Member] | ||||
Accounts receivable | 14,302 | |||
Inventories | 8,000 | |||
Prepaid expenses and other assets | 4,323 | |||
Property and equipment | 5,572 | |||
Intangible assets | 33,631 | |||
Goodwill | 46,196 | $ 46,196 | ||
Deferred income taxes | 3,252 | |||
Other assets | 597 | |||
Total assets acquired | 115,873 | |||
Accounts payable | 7,216 | |||
Accrued wages and employee benefits | 397 | |||
Other accrued liabilities | 13,671 | |||
Current portion of long-term debt | 0 | |||
Deferred income taxes | 10,974 | |||
Other long-term liabilities | 3,643 | |||
Redeemable non-controlling interest | 0 | |||
Net assets acquired | $ 79,972 |
Note 3 - Acquisitions - Unaudit
Note 3 - Acquisitions - Unaudited Pro Forma Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Net sales | $ 761,082 | $ 701,355 | $ 546,848 | $ 475,915 | $ 590,932 | $ 601,135 | $ 541,916 | $ 470,353 | $ 2,485,200 | $ 2,204,336 | $ 2,023,464 |
As reported | $ 125,001 | $ 114,970 | $ 66,145 | $ 44,460 | $ 69,614 | $ 75,574 | $ 61,958 | $ 44,861 | $ 350,576 | $ 252,007 | $ 238,257 |
As reported (in dollars per share) | $ 1.97 | $ 1.82 | $ 1.02 | $ 0.68 | $ 1.12 | $ 1.18 | $ 0.98 | $ 0.76 | $ 5.48 | $ 4.03 | $ 3.54 |
Pro Forma [Member] | |||||||||||
Net sales | $ 2,512,017 | $ 2,242,710 | $ 2,093,112 | ||||||||
As reported | $ 339,317 | $ 239,925 | $ 220,555 | ||||||||
As reported (in dollars per share) | $ 5.34 | $ 3.84 | $ 3.26 |
Note 4 - Redeemable Noncontro_3
Note 4 - Redeemable Noncontrolling Interest (Details Textual) - USD ($) $ in Thousands | Feb. 01, 2019 | Feb. 28, 2019 | Mar. 01, 2016 |
Pramac [Member] | |||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 35.00% | ||
Captiva Energy Solutions [Member] | |||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 49.00% | ||
Pramac [Member] | |||
Business Acquisition, Percentage of Voting Interests Acquired | 65.00% | ||
Redeemable Noncontrolling Interest, Equity, Fair Value, Total | $ 34,253 | ||
Noncontrolling Interest Agreement, Extension of Term (Year) | 5 years | ||
Captiva Energy Solutions [Member] | |||
Business Acquisition, Percentage of Voting Interests Acquired | 51.00% | ||
Redeemable Noncontrolling Interest, Equity, Fair Value, Total | $ 3,165 | ||
Business Acquisition, Noncontrolling Interest, Term of Put Option (Year) | 5 years | ||
Business Acquisition, Term of Call Option (Year) | 5 years |
Note 4 - Redeemable Noncontro_4
Note 4 - Redeemable Noncontrolling Interest - Redeemable Noncontrolling Interest (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Redemption value adjustment | $ (1,247) | $ 1,253 | $ (17,970) | |
Redeemable Noncontrolling Interest [Member] | ||||
Balance | 61,227 | 61,004 | 43,929 | |
Noncontrolling interest | 0 | 3,165 | [1] | 0 |
Net income | (2,829) | 75 | 2,214 | |
Foreign currency translation | 6,562 | (1,764) | (3,109) | |
Redemption value adjustment | 1,247 | (1,253) | 17,970 | |
Balance | $ 66,207 | $ 61,227 | $ 61,004 | |
[1] | Represents the noncontrolling interest of Captiva calculated at the date of acquisition, February 1, 2019. |
Note 5 - Derivative Instrumen_3
Note 5 - Derivative Instruments and Hedging Activities (Details Textual) $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Mar. 31, 2020 | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017 | |
Derivative, Gain (Loss) on Derivative, Net, Total | $ 355 | $ (1,195) | $ (653) | ||
Derivative Assets (Liabilities), Net Fair Value of Derivative Contracts, Excluding Impact of Credit Risk | $ (28,667) | $ (10,588) | |||
Commodity Contract [Member] | |||||
Derivative, Number of Instruments Held, Total | 1 | 0 | |||
Commodity Contract [Member] | Not Designated as Hedging Instrument [Member] | Cost of Sales [Member] | |||||
Derivative, Gain (Loss) on Derivative, Net, Total | $ 2,185 | $ (174) | (874) | ||
Foreign Exchange Contract [Member] | |||||
Derivative, Number of Instruments Held, Total | 44 | 43 | |||
Interest Rate Swap [Member] | |||||
Number of New Contracts Entered | 3 | 20 | |||
Derivative, Number of Instruments Outstanding | 15 | ||||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, before Tax | $ (14,285) | $ (13,855) | $ 2,924 |
Note 5 - Derivative Instrumen_4
Note 5 - Derivative Instruments and Hedging Activities - Fair Value of Derivatives (Details) - Fair Value, Inputs, Level 2 [Member] - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Commodity Contract [Member] | ||
Fair Value of Derivatives | $ 1,386 | $ 6 |
Foreign Exchange Contract [Member] | ||
Fair Value of Derivatives | (154) | 31 |
Interest Rate Swap [Member] | ||
Fair Value of Derivatives | $ (29,536) | $ (10,425) |
Note 6 - Accumulated Other Co_3
Note 6 - Accumulated Other Comprehensive Loss (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent [Member] | ||
Other Comprehensive Income (Loss), before Reclassifications, before Tax | $ (19,111) | $ (18,732) |
Other Comprehensive Income (Loss) before Reclassifications, Tax, Total | $ 4,826 | 4,877 |
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | ||
Other Comprehensive Income (Loss), before Reclassifications, before Tax | 1,992 | |
Other Comprehensive Income (Loss) before Reclassifications, Tax, Total | $ (518) |
Note 6 - Accumulated Other Co_4
Note 6 - Accumulated Other Comprehensive Loss - Disclosure of Changes in Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |||
Balance | $ 1,032,851 | $ 761,261 | $ 554,320 | ||
Net current-period other comprehensive income (loss) | (9,337) | (1,104) | (2,615) | ||
Balance | 1,390,204 | 1,032,851 | 761,261 | ||
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | |||||
Balance | (16,622) | (18,832) | |||
Other comprehensive income (loss) before reclassifications | 4,948 | 2,210 | |||
Amounts reclassified from AOCL | 0 | 0 | |||
Net current-period other comprehensive income (loss) | 4,948 | 2,210 | |||
Balance | (11,674) | (16,622) | (18,832) | ||
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | |||||
Balance | 0 | (10,541) | |||
Other comprehensive income (loss) before reclassifications | 0 | 1,474 | [1] | ||
Amounts reclassified from AOCL | 0 | 9,067 | [2] | ||
Net current-period other comprehensive income (loss) | 0 | 10,541 | |||
Balance | 0 | 0 | (10,541) | ||
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent [Member] | |||||
Balance | (8,295) | 5,560 | |||
Other comprehensive income (loss) before reclassifications | (14,285) | [3] | (13,855) | [4] | |
Amounts reclassified from AOCL | 0 | 0 | |||
Net current-period other comprehensive income (loss) | (14,285) | (13,855) | |||
Balance | (22,580) | (8,295) | 5,560 | ||
AOCI Attributable to Parent [Member] | |||||
Balance | (24,917) | (23,813) | (21,198) | ||
Other comprehensive income (loss) before reclassifications | (9,337) | (10,171) | |||
Amounts reclassified from AOCL | 0 | 9,067 | |||
Net current-period other comprehensive income (loss) | (9,337) | (1,104) | |||
Balance | $ (34,254) | $ (24,917) | $ (23,813) | ||
[1] | Represents unrecognized actuarial gains of $1,992 net of tax effect of $(518), included in the computation of net periodic pension cost for the year ended December 31, 2019. Refer to Note 16, “Benefit Plans,” to the consolidated financial statements for additional information. | ||||
[2] | Details of reclassifications from AOCL during 2019 are as follows: Amounts reclassified from AOCL Loss on pension settlement $ 10,920 Amortization of net loss 843 Total before tax 11,763 Income tax impact (2,696 ) Amounts reclassified from AOCL $ 9,067 | ||||
[3] | Represents unrealized losses of $(19,111), net of tax effect of $4,826 for the year ended December 31, 2020. | ||||
[4] | Represents unrealized losses of $(18,732), net of tax effect of $4,877 for the year ended December 31, 2019. |
Note 6 - Accumulated Other Co_5
Note 6 - Accumulated Other Comprehensive Loss - Reclassifications from AOCL (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |||
Loss on pension settlement | [1] | $ 0 | $ (10,920) | $ 0 | |
Total before tax | 446,191 | 319,607 | 311,076 | ||
Income tax impact | 98,973 | 67,299 | $ 69,856 | ||
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | |||||
Amounts reclassified from AOCL during 2019 | $ 0 | (9,067) | [2] | ||
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | |||||
Loss on pension settlement | (10,920) | ||||
Amortization of net loss | 843 | ||||
Total before tax | 11,763 | ||||
Income tax impact | (2,696) | ||||
Amounts reclassified from AOCL during 2019 | $ 9,067 | ||||
[1] | Represents pre-tax settlement charges related to the termination of the Company’s domestic pension plan in the fourth quarter of 2019. | ||||
[2] | Details of reclassifications from AOCL during 2019 are as follows: Amounts reclassified from AOCL Loss on pension settlement $ 10,920 Amortization of net loss 843 Total before tax 11,763 Income tax impact (2,696 ) Amounts reclassified from AOCL $ 9,067 |
Note 7 - Segment Reporting (Det
Note 7 - Segment Reporting (Details Textual) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Number of Reportable Segments | 2 | ||
Geographic Concentration Risk [Member] | Revenue Benchmark [Member] | UNITED STATES | |||
Concentration Risk, Percentage | 82.00% | 75.00% | 74.00% |
Geographic Concentration Risk [Member] | Net Assets, Geographic Area [Member] | UNITED STATES | |||
Concentration Risk, Percentage | 81.00% | 80.00% |
Note 7 - Segment Reporting - Ne
Note 7 - Segment Reporting - Net Sales by Products and Services (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Net sales | $ 761,082 | $ 701,355 | $ 546,848 | $ 475,915 | $ 590,932 | $ 601,135 | $ 541,916 | $ 470,353 | $ 2,485,200 | $ 2,204,336 | $ 2,023,464 |
Domestic [Member] | |||||||||||
Net sales | 2,088,808 | 1,742,898 | 1,566,520 | ||||||||
International [Member] | |||||||||||
Net sales | 396,392 | 461,438 | 456,944 | ||||||||
Residential Power Products [Member] | |||||||||||
Net sales | 1,556,501 | 1,143,723 | 1,042,739 | ||||||||
Residential Power Products [Member] | Domestic [Member] | |||||||||||
Net sales | 1,495,383 | 1,086,019 | 980,707 | ||||||||
Residential Power Products [Member] | International [Member] | |||||||||||
Net sales | 61,118 | 57,704 | 62,032 | ||||||||
Commercial and Industrial Power Products [Member] | |||||||||||
Net sales | 701,751 | 871,595 | 820,270 | ||||||||
Commercial and Industrial Power Products [Member] | Domestic [Member] | |||||||||||
Net sales | 404,867 | 513,482 | 461,415 | ||||||||
Commercial and Industrial Power Products [Member] | International [Member] | |||||||||||
Net sales | 296,884 | 358,113 | 358,855 | ||||||||
Other Products and Services [Member] | |||||||||||
Net sales | 226,948 | 189,018 | 160,455 | ||||||||
Other Products and Services [Member] | Domestic [Member] | |||||||||||
Net sales | 188,558 | 143,397 | 124,398 | ||||||||
Other Products and Services [Member] | International [Member] | |||||||||||
Net sales | $ 38,390 | $ 45,621 | $ 36,057 |
Note 7 - Segment Reporting - Se
Note 7 - Segment Reporting - Segment Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Total adjusted EBITDA | $ 583,773 | $ 454,115 | $ 424,552 | |
Interest expense | (32,991) | (41,544) | (40,956) | |
Depreciation and amortization | (68,773) | (60,767) | (47,408) | |
Non-cash write-down and other adjustments (1) | [1] | 327 | (240) | (3,532) |
Non-cash share-based compensation expense (2) | [2] | (20,882) | (16,694) | (14,563) |
Loss on extinguishment of debt | [3] | 0 | (926) | (1,332) |
Loss on pension settlement | [4] | 0 | (10,920) | 0 |
Transaction costs and credit facility fees (5) | [5] | (2,151) | (2,724) | (3,883) |
Business optimization and other charges (6) | [6] | (12,158) | (1,572) | (952) |
Other | (954) | 879 | (850) | |
Total before tax | 446,191 | 319,607 | 311,076 | |
Assets | 3,235,423 | 2,665,669 | 2,426,314 | |
Depreciation and Amortization | 68,773 | 60,909 | 47,408 | |
Capital expenditures | 62,128 | 60,802 | 47,601 | |
Domestic [Member] | ||||
Total adjusted EBITDA | 563,394 | 428,667 | 388,495 | |
Assets | 2,659,597 | 2,123,251 | 1,868,554 | |
Depreciation and Amortization | 53,020 | 46,145 | 35,586 | |
Capital expenditures | 51,867 | 36,007 | 38,242 | |
International [Member] | ||||
Total adjusted EBITDA | 20,379 | 25,448 | 36,057 | |
Assets | 575,826 | 542,418 | 557,760 | |
Depreciation and Amortization | 15,753 | 14,764 | 11,822 | |
Capital expenditures | $ 10,261 | $ 24,795 | $ 9,359 | |
[1] | Includes certain foreign currency and purchase accounting related adjustments, gains/losses on disposal of assets and unrealized mark-to-market adjustments on commodity contracts. | |||
[2] | Represents share-based compensation expense to account for stock options, restricted stock and other stock awards over their respective vesting periods. | |||
[3] | Represents the non-cash write-off of original issue discount and deferred financing costs due to a voluntary prepayment of Term Loan debt. | |||
[4] | Represents pre-tax settlement charges related to the termination of the Company’s domestic pension plan in the fourth quarter of 2019. | |||
[5] | Represents transaction costs incurred directly in connection with any investment, as defined in our credit agreement, equity issuance, debt issuance or refinancing, together with certain fees relating to our senior secured credit facilities. | |||
[6] | For the year ended December 31, 2020, represents severance, non-cash asset write-downs, and other charges to address the impact of the COVID-19 pandemic and decline in oil prices. For the year ended December 31, 2019, represents severance and other charges related to the consolidation of certain of our facilities. |
Note 8 - Balance Sheet Detail_2
Note 8 - Balance Sheet Details (Details Textual) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Other Inventory, Materials, Supplies and Merchandise under Consignment, Gross | $ 9,154 | $ 18,684 |
Capital Leases, Balance Sheet, Assets by Major Class, Net, Total | $ 27,269 | $ 26,063 |
Note 8 - Balance Sheet Detail_3
Note 8 - Balance Sheet Details - Inventories (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Raw material | $ 375,516 | $ 328,021 |
Work-in-process | 6,833 | 10,387 |
Finished goods | 220,968 | 183,616 |
Total | $ 603,317 | $ 522,024 |
Note 8 - Balance Sheet Detail_4
Note 8 - Balance Sheet Details - Property and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Property and equipment, gross | $ 544,620 | $ 478,156 |
Accumulated depreciation | (200,684) | (161,180) |
Total | 343,936 | 316,976 |
Land and Land Improvements [Member] | ||
Property and equipment, gross | 18,363 | 18,252 |
Building and Building Improvements [Member] | ||
Property and equipment, gross | 198,908 | 177,079 |
Machinery and Equipment [Member] | ||
Property and equipment, gross | 153,696 | 117,114 |
Dies and Tools [Member] | ||
Property and equipment, gross | 24,190 | 22,040 |
Vehicles [Member] | ||
Property and equipment, gross | 6,037 | 3,955 |
Office Equipment [Member] | ||
Property and equipment, gross | 107,923 | 99,124 |
Leasehold Improvements [Member] | ||
Property and equipment, gross | 5,276 | 4,293 |
Construction in Progress [Member] | ||
Property and equipment, gross | $ 30,227 | $ 36,299 |
Note 9 - Goodwill and Intangi_3
Note 9 - Goodwill and Intangible Assets (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Amortization of Intangible Assets, Total | $ 32,280 | $ 28,644 | $ 22,112 |
Finite-Lived Intangible Asset, Expected Amortization, Year One | 33,906 | ||
Finite-Lived Intangible Asset, Expected Amortization, Year Two | 26,649 | ||
Finite-Lived Intangible Asset, Expected Amortization, Year Three | 22,129 | ||
Finite-Lived Intangible Asset, Expected Amortization, Year Four | 18,581 | ||
Finite-Lived Intangible Asset, Expected Amortization, Year Five | $ 16,808 |
Note 9 - Goodwill and Intangi_4
Note 9 - Goodwill and Intangible Assets - Carrying Amount of Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Balance | $ 805,284 | $ 764,655 | ||
Acquisitions of businesses, net | 42,722 | 40,836 | ||
Foreign currency translation | 7,222 | (207) | ||
Balance | 855,228 | 805,284 | ||
Goodwill, gross | $ 1,363,032 | $ 1,313,088 | ||
Accumulated impairment | (507,804) | (507,804) | ||
Goodwill | 805,284 | 764,655 | 855,228 | 805,284 |
Domestic [Member] | ||||
Balance | 659,209 | 621,451 | ||
Acquisitions of businesses, net | 42,722 | 37,758 | ||
Foreign currency translation | 604 | 0 | ||
Balance | 702,535 | 659,209 | ||
Goodwill, gross | 1,205,728 | 1,162,402 | ||
Accumulated impairment | (503,193) | (503,193) | ||
Goodwill | 702,535 | 659,209 | 702,535 | 659,209 |
International [Member] | ||||
Balance | 146,075 | 143,204 | ||
Acquisitions of businesses, net | 0 | 3,078 | ||
Foreign currency translation | 6,618 | (207) | ||
Balance | 152,693 | 146,075 | ||
Goodwill, gross | 157,304 | 150,686 | ||
Accumulated impairment | (4,611) | (4,611) | ||
Goodwill | $ 152,693 | $ 146,075 | $ 152,693 | $ 146,075 |
Note 9 - Goodwill and Intangi_5
Note 9 - Goodwill and Intangible Assets - Summary of Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Finite-lived intangible assets, gross | $ 680,251 | $ 653,682 |
Finite-lived intangible assets, accumulated amortization | (516,549) | (484,269) |
Finite-lived intangible assets, net | 163,702 | 169,413 |
Indefinite-lived tradenames, gross | 128,321 | 128,321 |
Total intangible assets, gross | 808,572 | 782,003 |
Total intangible assets, net | $ 292,023 | 297,734 |
Trade Names [Member] | ||
Finite-lived intangible assets, useful life (Year) | 9 years | |
Finite-lived intangible assets, gross | $ 58,729 | 56,669 |
Finite-lived intangible assets, accumulated amortization | (40,891) | (36,613) |
Finite-lived intangible assets, net | $ 17,838 | 20,056 |
Customer Lists [Member] | ||
Finite-lived intangible assets, useful life (Year) | 12 years | |
Finite-lived intangible assets, gross | $ 370,736 | 369,932 |
Finite-lived intangible assets, accumulated amortization | (321,531) | (314,380) |
Finite-lived intangible assets, net | $ 49,205 | 55,552 |
Patents and Technology [Member] | ||
Finite-lived intangible assets, useful life (Year) | 10 years | |
Finite-lived intangible assets, gross | $ 233,271 | 213,972 |
Finite-lived intangible assets, accumulated amortization | (146,544) | (128,426) |
Finite-lived intangible assets, net | 86,727 | 85,546 |
Computer Software, Intangible Asset [Member] | ||
Finite-lived intangible assets, gross | 1,046 | 1,046 |
Finite-lived intangible assets, accumulated amortization | (1,046) | (1,046) |
Finite-lived intangible assets, net | $ 0 | 0 |
Noncompete Agreements [Member] | ||
Finite-lived intangible assets, useful life (Year) | 4 years | |
Finite-lived intangible assets, gross | $ 16,469 | 12,063 |
Finite-lived intangible assets, accumulated amortization | (6,537) | (3,804) |
Finite-lived intangible assets, net | $ 9,932 | $ 8,259 |
Note 10 - Leases (Details Textu
Note 10 - Leases (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2018 | Dec. 31, 2019 | Jan. 01, 2019 | |
Operating Leases, Rent Expense, Net, Total | $ 10,739 | |||
Retained Earnings (Accumulated Deficit), Ending Balance | $ 1,432,565 | $ 1,084,383 | ||
Accounting Standards Update 2016-02 [Member] | ||||
Operating Lease, Right-of-Use Asset | $ 42,024 | |||
Operating Lease, Liability, Total | 42,056 | |||
Accounting Standards Update 2016-02 [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | ||||
Retained Earnings (Accumulated Deficit), Ending Balance | $ 0 | |||
Maximum [Member] | ||||
Lessee, Operating Lease and Finance Lease, Remaining Term of Contract (Year) | 20 years | |||
Lessee, Operating Lease, Renewal Term (Year) | 10 years |
Note 10 - Leases - Leases Cost
Note 10 - Leases - Leases Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Operating lease cost | $ 18,648 | $ 9,647 |
Amortization of ROU assets | 2,587 | 2,531 |
Interest on lease liabilities | 2,237 | 2,227 |
Total lease cost | $ 23,472 | $ 14,405 |
Note 10 - Leases - Supplement B
Note 10 - Leases - Supplement Balance Sheet Information Related to Leases (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | |
Finance lease ROU assets, gross | $ 34,929 | $ 29,142 | |
Accumulated depreciation - finance lease ROU assets | (7,660) | (3,079) | |
Finance lease ROU assets, net (4) | [1] | 27,269 | 26,063 |
Finance lease liabilities - current (5) | [2] | 2,311 | 1,830 |
Finance lease liabilities - noncurrent (6) | [3] | 25,060 | 24,132 |
Total finance lease liabilities | 27,371 | 25,962 | |
Operating Lease and Other Assets [Member] | |||
Operating lease ROU assets (1) | [4] | 62,030 | 35,950 |
Other Accrued Liabilities [Member] | |||
Operating lease liabilities - current (2) | [5] | 17,192 | 7,231 |
Operating Lease and Other Long-term Liabilities [Member] | |||
Operating lease liabilities - noncurrent (3) | [6] | 46,558 | 29,778 |
Other Accrued Liabilities and Operating Lease and Other Long-term Liabilities [Member] | |||
Total operating lease liabilities | $ 63,750 | $ 37,009 | |
[1] | Recorded in the property and equipment, net line | ||
[2] | Recorded in the current portion of long-term borrowings and finance lease obligations line | ||
[3] | Recorded in the long-term borrowings and finance lease obligations line | ||
[4] | Recorded in the operating lease and other assets line within the consolidated balance sheets | ||
[5] | Recorded in the other accrued liabilities line | ||
[6] | Recorded in the operating lease and other long-term liabilities line |
Note 10 - Leases - Supplement C
Note 10 - Leases - Supplement Cash Flow Information Related to Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Operating cash flows from operating leases | $ 18,412 | $ 10,125 |
Operating cash flows from finance leases | 1,871 | 1,864 |
Financing cash flows from finance leases | 3,957 | 3,237 |
Operating leases | 41,678 | 4,021 |
Finance leases | $ 3,737 | $ 8,797 |
Note 10 - Leases - Weighted Ave
Note 10 - Leases - Weighted Average Remaining Lease Term and Discount Rate Information (Details) | Dec. 31, 2020 |
Operating Leases (Year) | 4 years 11 months 1 day |
Finance Leases (Year) | 12 years 10 months 24 days |
Operating Leases | 4.48% |
Finance Leases | 7.66% |
Note 10 - Leases - Maturities o
Note 10 - Leases - Maturities of Lease liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
2021, finance leases | $ 4,146 | |
2021, operating leases | 19,530 | |
2022, finance leases | 4,292 | |
2022, operating leases | 18,135 | |
2023, finance leases | 3,112 | |
2023, operating leases | 9,519 | |
2024, finance leases | 2,999 | |
2024, operating leases | 7,452 | |
2025, finance leases | 2,678 | |
2025, operating leases | 5,359 | |
After 2023, finance leases | 28,596 | |
After 2023, operating leases | 11,711 | |
Total minimum lease payments, finance leases | 45,823 | |
Total minimum lease payments, operating leases | 71,706 | |
Interest component | (18,452) | |
Interest component | (7,956) | |
Present value of minimum lease payments, finance leases | 27,371 | $ 25,962 |
Other Accrued Liabilities and Operating Lease and Other Long-term Liabilities [Member] | ||
Operating Lease, Liability, Total | $ 63,750 | $ 37,009 |
Note 11 - Product Warranty Ob_3
Note 11 - Product Warranty Obligations 1 (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Capitalized Contract Cost, Net, Total | $ 6,869 | $ 6,190 | |
Capitalized Contract Cost, Amortization | $ 1,303 | $ 869 | $ 615 |
Minimum [Member] | |||
Extended Warranty Term (Year) | 5 years | ||
Maximum [Member] | |||
Extended Warranty Term (Year) | 10 years |
Note 11 - Product Warranty Ob_4
Note 11 - Product Warranty Obligations 2 (Details Textual) | Dec. 31, 2020 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period (Year) | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period (Year) | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period (Year) | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period (Year) | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period (Year) | 1 year |
Note 11 - Product Warranty Ob_5
Note 11 - Product Warranty Obligations - Reconciliation of Product Warranty Liability (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Balance at beginning of period | $ 49,316 | $ 41,785 | $ 35,422 |
Product warranty reserve assumed in acquisition | 124 | 1,062 | 0 |
Payments | (33,496) | (26,096) | (20,029) |
Provision for warranty issued | 42,093 | 32,060 | 26,910 |
Changes in estimates for pre-existing warranties | 1,181 | 505 | (518) |
Balance at end of period | 59,218 | 49,316 | 41,785 |
Balance at beginning of period | 78,738 | 68,340 | 57,854 |
Deferred revenue contracts issued | 26,968 | 24,483 | 21,440 |
Amortization of deferred revenue contracts | (15,918) | (14,085) | (10,954) |
Balance at end of period | $ 89,788 | $ 78,738 | $ 68,340 |
Note 11 - Product Warranty Ob_6
Note 11 - Product Warranty Obligations - Recognition of Deferred Revenue Related to Extended Warranties (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Revenue performance obligation | $ 89,788 |
Note 11 - Product Warranty Ob_7
Note 11 - Product Warranty Obligations - Recognition of Deferred Revenue Related to Extended Warranties 2 (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Revenue performance obligation | $ 89,788 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Revenue performance obligation | 18,754 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue performance obligation | 18,819 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue performance obligation | 16,464 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue performance obligation | 11,849 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | |
Revenue performance obligation | $ 23,902 |
Note 11 - Product Warranty Ob_8
Note 11 - Product Warranty Obligations - Deferred Product Obligations (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Current portion - other accrued liabilities | $ 37,417 | $ 27,885 | ||
Long-term portion - other long-term liabilities | 21,801 | 21,431 | ||
Total | 59,218 | 49,316 | $ 41,785 | $ 35,422 |
Current portion - other accrued liabilities | 18,857 | 15,519 | ||
Long-term portion - other long-term liabilities | 70,931 | 63,219 | ||
Total | $ 89,788 | $ 78,738 | $ 68,340 | $ 57,854 |
Note 12 - Credit Agreements (De
Note 12 - Credit Agreements (Details Textual) - USD ($) $ in Thousands | May 31, 2013 | Jun. 30, 2018 | May 31, 2015 | Dec. 31, 2019 | Jun. 30, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Gain (Loss) on Extinguishment of Debt, Total | [1] | $ 0 | $ (926) | $ (1,332) | |||||
Long-term Line of Credit, Total | $ 0 | 0 | 0 | ||||||
Short-term Debt, Total | 58,714 | $ 39,282 | 58,714 | ||||||
ABL Revolving Credit Facility [Member] | |||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 250,000 | $ 250,000 | |||||||
Amended ABL Facility [Member] | |||||||||
Line of Credit Facility, Maximum Borrowing Capacity | 300,000 | 300,000 | |||||||
Debt Issuance Costs, Net, Total | 755 | 755 | |||||||
Gain (Loss) on Extinguishment of Debt, Total | (34) | ||||||||
Proceeds from Lines of Credit, Total | 50,000 | ||||||||
Repayments of Lines of Credit | 50,000 | ||||||||
Long-term Line of Credit, Total | 0 | 0 | |||||||
Line of Credit Facility, Remaining Borrowing Capacity | 299,621 | $ 299,621 | |||||||
Base Rate [Member] | ABL Revolving Credit Facility [Member] | |||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.00% | 0.125% | |||||||
Base Rate [Member] | Amended ABL Facility [Member] | |||||||||
Debt Instrument, Basis Spread on Variable Rate | 0.375% | ||||||||
Adjusted LIBOR Rate [Member] | ABL Revolving Credit Facility [Member] | |||||||||
Debt Instrument, Basis Spread on Variable Rate | 2.00% | 1.375% | |||||||
London Interbank Offered Rate (LIBOR) [Member] | ABL Revolving Credit Facility [Member] | |||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.125% | ||||||||
Term Loan [Member] | |||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,200,000 | ||||||||
Uncommitted Incremental Term Loan Facility | $ 300,000 | ||||||||
Debt Issuance Costs, Net, Total | 829 | 1,247 | $ 829 | 1,247 | |||||
Debt Instrument, Fee Amount | $ 118 | 432 | 118 | $ 432 | |||||
Repayments of Long-term Debt, Total | 49,000 | ||||||||
Gain (Loss) on Extinguishment of Debt, Total | $ (926) | $ (1,298) | |||||||
Secured Leverage Ratio | 1.12 | ||||||||
Term Loan [Member] | Maximum [Member] | |||||||||
Threshold for Secured Leverage Ratio Excess Cash Flow Payment Requirement | 3.75 | ||||||||
Term Loan [Member] | Base Rate [Member] | |||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.75% | 0.75% | |||||||
Term Loan [Member] | Adjusted LIBOR Rate [Member] | |||||||||
Debt Instrument, Basis Spread on Variable Rate | 2.75% | 1.75% | |||||||
Term Loan [Member] | LIBOR Floor Rate [Member] | |||||||||
Debt Instrument, Basis Spread on Variable Rate | 0.75% | 0.75% | |||||||
Term Loan [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.75% | ||||||||
[1] | Represents the non-cash write-off of original issue discount and deferred financing costs due to a voluntary prepayment of Term Loan debt. |
Note 12 - Credit Agreements - S
Note 12 - Credit Agreements - Short-term Borrowings (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Short-term borrowings | $ 39,282 | $ 58,714 |
ABL Revolving Credit Facility [Member] | ||
Short-term borrowings | 0 | 30,961 |
Other Lines of Credit [Member] | ||
Short-term borrowings | $ 39,282 | $ 27,753 |
Note 12 - Credit Agreements - L
Note 12 - Credit Agreements - Long-term Borrowings (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | |
Term loan | $ 830,000 | $ 830,000 | |
Original issue discount and deferred financing costs | (15,450) | (18,048) | |
ABL facility | 0 | 0 | |
Total finance lease liabilities | 27,371 | 25,962 | |
Other | 3,990 | 2,236 | |
Total | 845,911 | 840,150 | |
Less: current portion of debt | 1,836 | 553 | |
Finance lease liabilities - current (5) | [1] | 2,311 | 1,830 |
Total | $ 841,764 | $ 837,767 | |
[1] | Recorded in the current portion of long-term borrowings and finance lease obligations line |
Note 12 - Credit Agreements - M
Note 12 - Credit Agreements - Maturities of Long-term Borrowings Outstanding (Details) $ in Thousands | Dec. 31, 2020USD ($) |
2021 | $ 1,836 |
2022 | 1,905 |
2023 | 46 |
2024 | 115 |
After 2024 | 830,088 |
Total | $ 833,990 |
Note 13 - Stock Repurchase Pr_2
Note 13 - Stock Repurchase Programs (Details Textual) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | 65 Months Ended | |||
Sep. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2020 | Sep. 30, 2018 | |
Stock Repurchase Program, Authorized Amount | $ 250,000 | $ 250,000 | ||||
Stock Repurchase Program, Period in Force (Month) | 24 months | |||||
Payments for Repurchase of Common Stock | $ 0 | $ 0 | $ 25,656 | $ 305,547 | ||
Treasury Stock Acquired, Average Cost Per Share (in dollars per share) | $ 35.21 | |||||
Treasury Stock [Member] | ||||||
Shares Acquired Under Stock Repurchases Program, Shares (in shares) | 0 | 560,000 | 8,676,706 |
Note 14 - Earnings Per Share (D
Note 14 - Earnings Per Share (Details Textual) - shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Payment Arrangement, Option [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) | 0 | 0 | 26,100 |
Note 14 - Earnings Per Share -
Note 14 - Earnings Per Share - Reconciliation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Net income attributable to Generac Holdings Inc. | $ 125,001 | $ 114,970 | $ 66,145 | $ 44,460 | $ 69,614 | $ 75,574 | $ 61,958 | $ 44,861 | $ 350,576 | $ 252,007 | $ 238,257 | |
Redeemable noncontrolling interest redemption value adjustment | (1,247) | 1,253 | (17,970) | |||||||||
Net income attributable to common shareholders | $ 349,329 | $ 253,260 | $ 220,287 | |||||||||
Weighted average shares, basic (in shares) | 62,280,889 | 61,926,986 | 61,662,031 | |||||||||
Dilutive effect of stock compensation awards (1) (in shares) | [1] | 1,456,845 | 938,460 | 571,194 | ||||||||
Diluted shares (in shares) | 63,737,734 | 62,865,446 | 62,233,225 | |||||||||
Net income attributable to Generac Holdings Inc. per common share - basic: (in dollars per share) | $ 2.02 | $ 1.86 | $ 1.04 | $ 0.69 | $ 1.14 | $ 1.20 | $ 0.99 | $ 0.77 | $ 5.61 | $ 4.09 | $ 3.57 | |
Net income attributable to Generac Holdings Inc. per common share - diluted: (in dollars per share) | $ 1.97 | $ 1.82 | $ 1.02 | $ 0.68 | $ 1.12 | $ 1.18 | $ 0.98 | $ 0.76 | $ 5.48 | $ 4.03 | $ 3.54 | |
[1] | Excludes approximately 26,100 stock options for the year ended December 31, 2018, as the impact of such awards was anti-dilutive. There were no awards with an anti-dilutive impact for the years ended December 31, 2020 and 2019. |
Note 15 - Income Taxes (Details
Note 15 - Income Taxes (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Deferred Income Tax Assets, Net, Total | $ 1,497 | $ 2,933 | |
Deferred Income Tax Liabilities, Net, Total | 115,769 | 96,328 | |
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Amount | 716 | (778) | $ (1,015) |
Tax Credit Carry Forward State Research and Development | 4,513 | ||
Tax Credit Carryforward State Manufacturing | 19,303 | ||
Unrecognized Tax Benefits, Interest on Income Taxes Expense | 95 | 71 | |
Unrecognized Tax Benefits, Income Tax Penalties Expense | $ 274 | $ 195 |
Note 15 - Income Taxes - Provis
Note 15 - Income Taxes - Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Current: | |||
Federal | $ 62,714 | $ 41,686 | $ 32,072 |
State | 13,071 | 4,211 | 9,639 |
Foreign | 1,974 | 2,660 | 4,546 |
Total | 77,759 | 48,557 | 46,257 |
Deferred: | |||
Federal | 20,452 | 19,393 | 22,225 |
State | 1,243 | 1,390 | 1,910 |
Foreign | (1,197) | (1,263) | 479 |
Total | 20,498 | 19,520 | 24,614 |
Change in valuation allowance | 716 | (778) | (1,015) |
Provision for income taxes | $ 98,973 | $ 67,299 | $ 69,856 |
Note 15 - Income Taxes - Compon
Note 15 - Income Taxes - Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Accrued expenses | $ 24,358 | $ 21,053 |
Deferred revenue | 15,851 | 14,697 |
Inventories | 11,795 | 9,879 |
Stock-based compensation | 8,348 | 7,490 |
Operating loss and credit carryforwards | 31,275 | 28,356 |
Bad debt | 1,633 | 1,094 |
Other | 8,558 | 4,275 |
Valuation allowance | (5,740) | (5,024) |
Total deferred tax assets | 96,078 | 81,820 |
Goodwill and intangible assets | 171,831 | 142,159 |
Depreciation | 33,716 | 27,864 |
Debt refinancing costs | 3,544 | 4,119 |
Prepaid expenses | 1,259 | 1,073 |
Total deferred tax liabilities | 210,350 | 175,215 |
Net deferred tax liabilities | $ (114,272) | $ (93,395) |
Note 15 - Income Taxes - Unreco
Note 15 - Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Unrecognized tax benefit, beginning of period | $ 6,720 | $ 5,635 |
Increase in unrecognized tax benefit for positions taken in prior period | 332 | 633 |
Increase in unrecognized tax benefit for positions taken in current period | 750 | 495 |
Statute of limitation expirations | (189) | (43) |
Settlements | 0 | 0 |
Unrecognized tax benefit, end of period | $ 7,613 | $ 6,720 |
Note 15 - Income Taxes - Reconc
Note 15 - Income Taxes - Reconciliation of Statutory and Effective Tax Rates (Details) | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
U.S. statutory rate | 21.00% | 21.00% | 21.00% | |
State taxes | 4.30% | 4.30% | 4.70% | |
State tax rate differential | 0.00% | (1.00%) | ||
Research and development credits | (1.10%) | (0.80%) | (1.30%) | |
State credits | (1.50%) | (1.00%) | (1.00%) | |
Share-based compensation | [1] | (1.00%) | (0.60%) | (0.50%) |
Tax Act impact | 0.00% | 0.00% | (0.20%) | |
Other | 0.50% | (0.80%) | (0.20%) | |
Effective tax rate | 22.20% | 21.10% | 22.50% | |
[1] | With the adoption of ASU 2016-09 in 2017, excess tax benefits from equity awards are reflected within the provision for income taxes rather than within the consolidated balance sheet. |
Note 16 - Benefit Plans (Detail
Note 16 - Benefit Plans (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Employer Contribution under Medical and Dental Plan | $ 24,617 | $ 18,290 | $ 14,660 | |
Savings Plan 401(k) [Member] | ||||
Defined Contribution Plan, Employer Matching Contribution, Percent of Match | 50.00% | |||
Defined Contribution Plan Percentage of Eligible Compensation | 6.00% | |||
Defined Contribution Plan, Cost | $ 5,332 | $ 4,791 | $ 4,193 | |
Pension Plan [Member] | ||||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement | $ (10,920) |
Note 17 - Share Plans (Details
Note 17 - Share Plans (Details Textual) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Jun. 13, 2019 | Feb. 10, 2010 | |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized (in shares) | 9,100,000 | ||||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price (in dollars per share) | $ 102.32 | $ 52.07 | $ 43.88 | ||
Proceeds from Stock Options Exercised | $ 13,089 | $ 9,395 | $ 5,614 | ||
Payment, Tax Withholding, Share-based Payment Arrangement | $ 14,910 | $ 6,438 | $ 5,659 | ||
Board of Directors Chairman [Member] | |||||
Deferred Compensation Arrangement with Individual, Shares Issued (in shares) | 15,275 | 22,544 | 33,419 | ||
Deferred Compensation Arrangement with Individual, Shares Granted (in shares) | 10,528 | 16,604 | 22,675 | ||
Deferred Compensation Arrangement with Individual, Compensation Expense | $ 1,558 | $ 1,391 | $ 1,718 | ||
Share-based Payment Arrangement, Option [Member] | |||||
Share-based Payment Arrangement, Expense | $ 5,860 | $ 5,597 | $ 4,998 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year) | 4 years | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period (Year) | 10 years | ||||
Share-based Payment Arrangement, Shares Withheld for Tax Withholding Obligation (in shares) | 24,070 | 32,211 | 63,817 | ||
Proceeds from Stock Options Exercised | $ 13,089 | $ 9,395 | $ 5,614 | ||
Payment, Tax Withholding, Share-based Payment Arrangement | 7,297 | $ 3,360 | $ 3,846 | ||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total | $ 10,673 | ||||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition (Year) | 2 years 4 months 24 days | ||||
Restricted Stock [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year) | 3 years | ||||
Share-based Payment Arrangement, Shares Withheld for Tax Withholding Obligation (in shares) | 70,718 | 55,953 | 38,186 | ||
Payment, Tax Withholding, Share-based Payment Arrangement | $ 7,613 | $ 3,078 | $ 1,812 | ||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total | $ 20,608 | ||||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition (Year) | 1 year 10 months 24 days | ||||
Performance Shares [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Performance Measurement, Period (Year) | 3 years | ||||
Restricted Stock and Performance Shares [Member] | |||||
Share-based Payment Arrangement, Expense | $ 15,022 | $ 11,097 | $ 9,565 | ||
Minimum [Member] | |||||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price (in dollars per share) | $ 91 | $ 52.07 | $ 43.88 | ||
Performance Share Award, Percentage | 0.00% | ||||
Maximum [Member] | |||||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price (in dollars per share) | $ 158.89 | $ 45.29 | |||
Performance Share Award, Percentage | 200.00% | ||||
Equity Incentive Plan (Plan) [Member] | |||||
Share-based Payment Arrangement, Expense | $ 11,681 | $ 15,738 | $ 14,563 | ||
The 2019 Equity Incentive Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized (in shares) | 2,700,000 | ||||
Share-based Payment Arrangement, Expense | $ 9,201 | $ 956 |
Note 17 - Share Plans - Weighte
Note 17 - Share Plans - Weighted-average Assumptions used in the Black-Scholes-Merton Option Pricing Model (Details) - Share-based Payment Arrangement, Option [Member] - $ / shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Weighted average grant date fair value (in dollars per share) | $ 35.79 | $ 19.33 | $ 17.86 |
Expected stock price volatility | 32.00% | 33.00% | 37.00% |
Risk free interest rate | 1.56% | 2.52% | 2.60% |
Expected annual dividend per share (in dollars per share) | $ 0 | $ 0 | $ 0 |
Expected life of options (Year) | 6 years 3 months | 6 years 3 months | 6 years 3 months |
Note 17 - Share Plans - Summary
Note 17 - Share Plans - Summary of Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Outstanding, number of options (in shares) | 1,592,686 | 1,521,167 | 1,472,130 | |
Outstanding, weighted average exercise price (in dollars per share) | $ 42.04 | $ 37.70 | $ 33.11 | |
Outstanding, weighted average remaining contractual term (Year) | 6 years 3 months 18 days | 6 years 10 months 24 days | 7 years | 7 years 3 months 18 days |
Outstanding, aggregate intrinsic value | $ 272,553 | $ 93,242 | $ 19,212 | $ 25,281 |
Granted, number of options (in shares) | 173,650 | 369,779 | 366,231 | |
Granted, weighted average exercise price (in dollars per share) | $ 102.32 | $ 52.07 | $ 43.88 | |
Exercised, number of options (in shares) | (216,196) | (263,250) | (267,909) | |
Exercised, weighted average exercise price (in dollars per share) | $ 39.88 | $ 30.75 | $ 19.90 | |
Forfeited, number of options (in shares) | (21,450) | (35,010) | (49,285) | |
Forfeited, weighted average exercise price (in dollars per share) | $ 50.25 | $ 43.79 | $ 43.34 | |
Outstanding, number of options (in shares) | 1,528,690 | 1,592,686 | 1,521,167 | 1,472,130 |
Outstanding, weighted average exercise price (in dollars per share) | $ 49.08 | $ 42.04 | $ 37.70 | $ 33.11 |
Exercisable, number of options (in shares) | 845,365 | |||
Exercisable, weighted average exercise price (in dollars per share) | $ 39.15 | |||
Exercisable, weighted average remaining contractual term (Year) | 4 years 10 months 24 days | |||
Exercisable, aggregate intrinsic value | $ 159,145 |
Note 17 - Share Plans - Summa_2
Note 17 - Share Plans - Summary of Restricted Share Awards Activity (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Non-vested (in shares) | 491,637 | 425,996 | 392,276 |
Non-vested (in dollars per share) | $ 52.84 | $ 40.50 | $ 37.77 |
Granted (in shares) | 183,868 | 265,255 | 208,803 |
Granted (in dollars per share) | $ 95.14 | $ 62.38 | $ 44.49 |
Vested (in shares) | (200,390) | (184,628) | (128,433) |
Vested (in dollars per share) | $ 45.10 | $ 38.78 | $ 39.03 |
Forfeited (in shares) | (18,921) | (14,986) | (46,650) |
Forfeited (in dollars per share) | $ 56.58 | $ 44.23 | $ 39.43 |
Non-vested (in shares) | 456,194 | 491,637 | 425,996 |
Non-vested (in dollars per share) | $ 68.42 | $ 52.84 | $ 40.50 |
Note 18 - Commitments and Con_2
Note 18 - Commitments and Contingencies (Details Textual) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Amount Financed by Dealers | $ 55.6 | $ 49.6 |
Note 19 - Quarterly Financial_3
Note 19 - Quarterly Financial Information (Unaudited) - Unaudited Quarterly Financial Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Net sales | $ 761,082 | $ 701,355 | $ 546,848 | $ 475,915 | $ 590,932 | $ 601,135 | $ 541,916 | $ 470,353 | $ 2,485,200 | $ 2,204,336 | $ 2,023,464 |
Gross profit | 300,202 | 276,149 | 208,983 | 172,320 | 222,222 | 217,517 | 195,838 | 162,175 | 957,654 | 797,752 | 725,040 |
Operating income | 171,054 | 155,637 | 89,553 | 62,862 | 104,508 | 105,556 | 90,926 | 71,173 | 479,106 | 372,163 | 357,181 |
Net income attributable to Generac Holdings Inc. | $ 125,001 | $ 114,970 | $ 66,145 | $ 44,460 | $ 69,614 | $ 75,574 | $ 61,958 | $ 44,861 | $ 350,576 | $ 252,007 | $ 238,257 |
Net income attributable to common shareholders per common share - basic: (in dollars per share) | $ 2.02 | $ 1.86 | $ 1.04 | $ 0.69 | $ 1.14 | $ 1.20 | $ 0.99 | $ 0.77 | $ 5.61 | $ 4.09 | $ 3.57 |
Net income attributable to common shareholders per common share - diluted: (in dollars per share) | $ 1.97 | $ 1.82 | $ 1.02 | $ 0.68 | $ 1.12 | $ 1.18 | $ 0.98 | $ 0.76 | $ 5.48 | $ 4.03 | $ 3.54 |
Note 20 - Valuation and Quali_3
Note 20 - Valuation and Qualifying Accounts - Schedule of Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |||
SEC Schedule, 12-09, Allowance, Credit Loss [Member] | |||||
Beginning | $ 6,968 | $ 4,873 | $ 4,805 | ||
Additions Charged to Earnings | 4,645 | 3,086 | 1,941 | ||
Allowance for credit losses | 1,147 | [1] | 0 | 0 | |
Charges to Reserve, Net | [2] | (957) | (1,033) | (2,123) | |
Reserves Assumed in Acquisition | 198 | 42 | 250 | ||
Balance at End of Year | 12,001 | 6,968 | 4,873 | ||
SEC Schedule, 12-09, Reserve, Inventory [Member] | |||||
Beginning | 24,293 | 23,140 | 15,987 | ||
Additions Charged to Earnings | 11,353 | 4,821 | 10,004 | ||
Allowance for credit losses | [1] | 0 | 0 | 0 | |
Charges to Reserve, Net | [2] | (8,788) | (3,867) | (3,720) | |
Reserves Assumed in Acquisition | 959 | 199 | 869 | ||
Balance at End of Year | 27,817 | 24,293 | 23,140 | ||
SEC Schedule, 12-09, Valuation Allowance, Deferred Tax Asset [Member] | |||||
Beginning | 5,024 | 5,802 | 6,817 | ||
Additions Charged to Earnings | 716 | 0 | 478 | ||
Allowance for credit losses | [1] | 0 | 0 | 0 | |
Charges to Reserve, Net | [2] | 0 | 0 | 0 | |
Reserves Assumed in Acquisition | 0 | (778) | (1,493) | ||
Balance at End of Year | $ 5,740 | $ 5,024 | $ 5,802 | ||
[1] | Result of adopting ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. | ||||
[2] | Deductions from the allowance for doubtful accounts equal accounts receivable written off against the allowance, less recoveries, as well as foreign currency translation adjustments. Deductions from the reserves for inventory excess and obsolete items equal inventory written off against the reserve as items were disposed of as well as foreign currency translation adjustments. |