Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Feb. 18, 2022 | Jun. 30, 2021 | |
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 | 2021 | ||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2021 | ||
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 | $ 25,196,620,072 | ||
Entity Common Stock, Shares Outstanding | 63,783,651 | ||
Auditor Name | Deloitte & Touche LLP | ||
Auditor Location | Milwaukee, Wisconsin | ||
Auditor Firm ID | 34 | ||
ICFR Auditor Attestation Flag | true |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 147,339 | $ 655,128 |
Accounts receivable, less allowance for credit losses of $12,025 and $12,001 at December 31, 2021 and 2020, respectively | 546,466 | 374,906 |
Inventories | 1,089,705 | 603,317 |
Prepaid expenses and other assets | 64,954 | 36,382 |
Total current assets | 1,848,464 | 1,669,733 |
Property and equipment, net | 440,852 | 343,936 |
Customer lists, net | 238,722 | 49,205 |
Patents and technology, net | 492,473 | 86,727 |
Other intangible assets, net | 66,436 | 9,932 |
Tradenames, net | 243,531 | 146,159 |
Goodwill | 1,409,674 | 855,228 |
Deferred income taxes | 15,740 | 1,497 |
Operating lease and other assets | 121,888 | 73,006 |
Total assets | 4,877,780 | 3,235,423 |
Current liabilities: | ||
Short-term Borrowings | 72,035 | 39,282 |
Accounts payable | 674,208 | 330,247 |
Accrued wages and employee benefits | 72,060 | 63,036 |
Other accrued liabilities | 331,674 | 204,812 |
Current portion of long-term borrowings and finance lease obligations | 5,930 | 4,147 |
Total current liabilities | 1,155,907 | 641,524 |
Long-term borrowings and finance lease obligations | 902,091 | 841,764 |
Deferred income taxes | 205,964 | 115,769 |
Operating lease and other long-term liabilities | 341,681 | 179,955 |
Total liabilities | 2,605,643 | 1,779,012 |
Redeemable noncontrolling interest | 58,050 | 66,207 |
Stockholders’ equity: | ||
Common stock, par value $0.01, 500,000,000 shares authorized, 72,386,017 and 72,024,329 shares issued at December 31, 2021 and 2020, respectively | 725 | 721 |
Additional paid-in capital | 952,939 | 525,541 |
Treasury stock, at cost, 8,667,031 and 9,173,731 shares at December 31, 2021 and 2020, respectively | (448,976) | (332,164) |
Excess purchase price over predecessor basis | (202,116) | (202,116) |
Retained earnings | 1,965,957 | 1,432,565 |
Accumulated other comprehensive loss | (54,755) | (34,254) |
Stockholders’ equity attributable to Generac Holdings Inc. | 2,213,774 | 1,390,293 |
Noncontrolling interests | 313 | (89) |
Total stockholders’ equity | 2,214,087 | 1,390,204 |
Total liabilities and stockholders’ equity | $ 4,877,780 | $ 3,235,423 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Accounts receivable, allowance for doubtful accounts | $ 12,025 | $ 12,001 |
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) | 72,386,017 | 72,024,329 |
Treasury stock, shares (in shares) | 8,667,031 | 9,173,731 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Net sales | $ 3,737,184 | $ 2,485,200 | $ 2,204,336 | |
Costs of goods sold | 2,377,102 | 1,527,546 | 1,406,584 | |
Gross profit | 1,360,082 | 957,654 | 797,752 | |
Operating expenses: | ||||
Selling and service | 319,020 | 246,373 | 217,683 | |
Research and development | 104,303 | 80,251 | 68,394 | |
General and administrative | 144,272 | 118,233 | 109,017 | |
Acquisition related costs | 21,465 | 1,411 | 1,851 | |
Amortization of intangibles | 49,886 | 32,280 | 28,644 | |
Total operating expenses | 638,946 | 478,548 | 425,589 | |
Income from operations | 721,136 | 479,106 | 372,163 | |
Other (expense) income: | ||||
Interest expense | (32,953) | (32,991) | (41,544) | |
Investment income | 1,415 | 2,182 | 2,767 | |
Loss on extinguishment of debt | [1] | (831) | 0 | (926) |
Loss on pension settlement | [2] | 0 | 0 | (10,920) |
Other, net | 2,759 | (2,106) | (1,933) | |
Total other expense, net | (29,610) | (32,915) | (52,556) | |
Income before provision for income taxes | 691,526 | 446,191 | 319,607 | |
Provision for income taxes | 134,957 | 98,973 | 67,299 | |
Net income | 556,569 | 347,218 | 252,308 | |
Net income attributable to noncontrolling interests | 6,075 | (3,358) | 301 | |
Net income attributable to Generac Holdings Inc. | 550,494 | 350,576 | 252,007 | |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustment | (41,030) | 4,948 | 2,210 | |
Net unrealized gain (loss) on derivatives | 20,529 | (14,285) | (13,855) | |
Pension liability adjustment | 0 | 0 | 10,541 | |
Other comprehensive income (loss) | (20,501) | (9,337) | (1,104) | |
Total comprehensive income | 536,068 | 337,881 | 251,204 | |
Comprehensive income (loss) attributable to noncontrolling interests | 5,496 | (364) | (635) | |
Comprehensive income attributable to Generac Holdings Inc. | $ 530,572 | $ 338,245 | $ 251,839 | |
Net income attributable to Generac Holdings Inc. per common share - basic: (in dollars per share) | $ 8.51 | $ 5.61 | $ 4.09 | |
Weighted average common shares outstanding - basic: (in shares) | 62,686,001 | 62,280,889 | 61,926,986 | |
Net income attributable to Generac Holdings Inc. per common share - diluted: (in dollars per share) | $ 8.30 | $ 5.48 | $ 4.03 | |
Weighted average common shares outstanding - diluted: (in shares) | 64,253,408 | 63,737,734 | 62,865,446 | |
[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, 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 | |||||||||
Change in noncontrolling interest share | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (154) | (154) | |||||||||
Net unrealized gain (loss) on derivatives | $ 0 | 0 | $ 0 | 0 | 0 | (13,855) | (13,855) | 0 | (13,855) | |||||||||
Foreign currency translation adjustment | 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 | |||||||||||||||||
Common stock issued under equity incentive plans, net of shares withheld for employee taxes and strike price | $ 5 | 6,056 | 6,061 | 6,061 | ||||||||||||||
Net share settlement of restricted stock awards (in shares) | (55,953) | |||||||||||||||||
Net share settlement of restricted stock awards | $ (3,078) | (3,078) | (3,078) | |||||||||||||||
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 and settlement, net of tax | 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 | |||||||||||||||||
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 and settlement, net of tax | 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 | |||||||||
Change in noncontrolling interest share | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (96) | (96) | |||||||||
Net unrealized gain (loss) on derivatives | 20,529 | 20,529 | 20,529 | |||||||||||||||
Foreign currency translation adjustment | $ 0 | 0 | $ 0 | 0 | 0 | (41,030) | (41,030) | (3) | (41,033) | |||||||||
Common stock issued under equity incentive plans, net of shares withheld for employee taxes and strike price (in shares) | 331,048 | 0 | ||||||||||||||||
Common stock issued under equity incentive plans, net of shares withheld for employee taxes and strike price | $ 3 | 7,073 | $ 0 | 0 | 0 | 0 | 7,076 | 0 | 7,076 | |||||||||
Net share settlement of restricted stock awards (in shares) | 0 | (80,583) | ||||||||||||||||
Net share settlement of restricted stock awards | $ 0 | 0 | $ (27,223) | 0 | 0 | 0 | (27,223) | 0 | (27,223) | |||||||||
Share-based compensation | 0 | 23,954 | 0 | 0 | 0 | 0 | 23,954 | 0 | 23,954 | |||||||||
Pension liability adjustment and settlement, net of tax | 0 | |||||||||||||||||
Redemption value adjustment | 0 | 0 | 0 | 0 | (17,102) | 0 | (17,102) | 0 | (17,102) | |||||||||
Net income attributable to Generac Holdings Inc. | $ 0 | 0 | 0 | 0 | 550,494 | 0 | 550,494 | 550,494 | ||||||||||
Net income | 501 | |||||||||||||||||
Net income | 550,995 | |||||||||||||||||
Common stock issued for business combination (in shares) | 30,640 | |||||||||||||||||
Common stock issued for business combination | $ 1 | 12,000 | $ 0 | 0 | 0 | 0 | 12,001 | 0 | 12,001 | |||||||||
Treasury stock issued for business combination (in shares) | 0 | 937,283 | ||||||||||||||||
Treasury stock issued for business combination | $ 0 | 384,371 | $ 36,403 | 0 | 0 | 0 | 420,774 | 0 | 420,774 | |||||||||
Stock repurchases (in shares) | 0 | (350,000) | ||||||||||||||||
Stock repurchases | $ 0 | 0 | $ (125,992) | 0 | 0 | 0 | (125,992) | 0 | (125,992) | |||||||||
Balance (in shares) at Dec. 31, 2021 | 72,386,017 | (8,667,031) | ||||||||||||||||
Balance at Dec. 31, 2021 | $ 725 | $ 952,939 | $ (448,976) | $ (202,116) | $ 1,965,957 | $ (54,755) | $ 2,213,774 | $ 313 | $ 2,214,087 |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Parentheticals) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
AOCI Attributable to Parent [Member] | |||
Unrealized gain (loss) on interest rate swaps, tax | $ 6,933 | $ (4,826) | $ (4,877) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | 77 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2021 | ||
Operating activities | |||||
Net income | $ 556,569 | $ 347,218 | $ 252,308 | ||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||
Depreciation | 42,155 | 36,493 | 32,265 | ||
Amortization of intangible assets | 49,886 | 32,280 | 28,644 | ||
Amortization of original issue discount and deferred financing costs | 2,589 | 2,598 | 4,712 | ||
Loss on extinguishment of debt | [1] | 831 | 0 | 926 | |
Loss on pension settlement | [2] | 0 | 0 | 10,920 | |
Deferred income taxes | (2,096) | 21,195 | 18,733 | ||
Share-based compensation expense | [3] | 23,954 | 20,882 | 16,694 | |
Loss (gain) on disposal of assets | (4,393) | 0 | 0 | ||
Other | 206 | 7,145 | 1,086 | ||
Net changes in operating assets and liabilities, net of acquisitions: | |||||
Accounts receivable | (131,861) | (55,976) | 8,231 | ||
Inventories | (470,991) | (77,983) | 26,369 | ||
Other assets | (819) | 12,859 | (358) | ||
Accounts payable | 297,323 | 66,040 | (69,404) | ||
Accrued wages and employee benefits | 5,814 | 20,157 | (3,724) | ||
Other accrued liabilities | 73,798 | 60,593 | (16,252) | ||
Excess tax benefits from equity awards | (31,809) | (6,968) | (2,263) | ||
Net cash provided by operating activities | 411,156 | 486,533 | 308,887 | ||
Investing activities | |||||
Proceeds from sale of property and equipment | 259 | 179 | 95 | ||
Proceeds from sale of investment | 4,968 | 0 | 0 | ||
Proceeds from beneficial interest in securitization transactions | 4,609 | 2,651 | 2,630 | ||
Contribution to equity method investment | (3,660) | 0 | 0 | ||
Expenditures for property and equipment | (109,992) | (62,128) | (60,802) | ||
Acquisition of businesses, net of cash acquired | (713,471) | (64,797) | (112,001) | ||
Net cash used in investing activities | (817,287) | (124,095) | (170,078) | ||
Financing activities | |||||
Proceeds from short-term borrowings | 272,818 | 257,593 | 73,340 | ||
Proceeds from long-term borrowings | 150,088 | 277 | 1,660 | ||
Repayments of short-term borrowings | (239,113) | (277,719) | (59,518) | ||
Repayments of long-term borrowings and finance lease obligations | (108,556) | (4,758) | (53,049) | ||
Stock repurchases | (125,992) | 0 | 0 | $ (431,539) | |
Payment of contingent acquisition consideration | (3,750) | (4,000) | (5,550) | ||
Payment of debt issuance costs | (1,185) | 0 | (1,473) | ||
Purchase of additional ownership interest | (27,164) | 0 | 0 | ||
Cash dividends paid to noncontrolling interest of subsidiary | 0 | 0 | (285) | ||
Taxes paid related to equity awards | (58,903) | (14,910) | (6,438) | ||
Proceeds from the exercise of stock options | 38,787 | 13,089 | 9,395 | ||
Net cash used in financing activities | (102,970) | (30,428) | (41,918) | ||
Effect of exchange rate changes on cash and cash equivalents | 1,312 | 235 | 1,510 | ||
Net (decrease) increase in cash and cash equivalents | (507,789) | 332,245 | 98,401 | ||
Cash and cash equivalents at beginning of period | 655,128 | 322,883 | 224,482 | ||
Cash and cash equivalents at end of period | 147,339 | 655,128 | 322,883 | $ 147,339 | |
Supplemental disclosure of cash flow information | |||||
Interest | 27,842 | 28,765 | 35,465 | ||
Income taxes | $ 156,728 | $ 61,861 | $ 61,767 | ||
[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, 2021 | |
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 February 2019, 2010 ● In March 2019, 2005 ● In April 2019, 2010 ● In July 2020, ● In September 2020, 2009 zero ● In October 2020, 2003 one ● In June 2021, 1975 ● In July 2021, ● In September 2021, ● In September 2021, ● In October 2021, ● In December 2021, 2007 |
Note 2 - Summary of Accounting
Note 2 - Summary of Accounting Policies | 12 Months Ended |
Dec. 31, 2021 | |
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 8% and 13% of accounts receivable at December 31, 2021 2020 No one December 31, 2021 2020 2019 Accounts Receivable and Allowance for Credit Losses The Company's trade and other receivables primarily arise from the sale of our products and services 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, 2021, The following is a tabular reconciliation of the Company's allowance for credit losses: Year Ended December 31, 2021 Balance at beginning of period $ 12,001 Established for Acquisitions 1,458 Provision for credit losses 206 Charge-offs (1,198 ) Currency translation (442 ) Balance at end of period $ 12,025 Inventories Inventories are stated at the lower of cost or market, with cost determined 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 $42,155, $36,493, and $32,265 for the years ended December 31, 2021, 2020 2019 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 2021 2020 2019 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. $2,589, $2,598, and $4,712 of deferred financing costs and original issue discount were amortized to interest expense during fiscal years 2021 2020 2019 five 2022 $2,603; 2023 $2,652; 2024 $2,709; 2025 $2,753; 2026 $2,499. 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, 2021 December 31, 2020 December 31, 2021 December 31, 2020 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 to utilities in certain circumstances. Total service revenues accounted for less than two December 31, 2021 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, 2021, 2020 2019 Research and Development The Company expenses research and development costs as incurred. Total expenditures incurred for research and development were $104,303, $80,251, and $68,394 for the years ended December 31, 2021, 2020 2019 Foreign Currency Translation and Transactions Balance sheet amounts for non-U.S. Dollar functional currency subsidiaries 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 $768,119, was approximately $782,925 (Level 2 December 31, 2021 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. Contingent Consideration Certain of the Company's business combinations involve potential payment of future consideration that is contingent upon the achievement of certain milestones. As part of purchase accounting, a liability is recorded for the estimated fair value of the contingent consideration on the acquisition date. The fair value of the contingent consideration is remeasured at each reporting period, and the change in fair value is recognized within general and administrative expenses in the Company's consolidated statements of comprehensive income. This fair value measurement of contingent consideration is categorized as a Level 3 not The fair value of contingent consideration as of December 31, 2021 December 31, 2020 December 31, 2021, December 31, 2020, The following table provides a reconciliation of the activity for contingent consideration: Beginning balance, January 1, 2021 $ 5,888 Purchase price contingent consideration (1) 149,761 Changes in fair value (6,002 ) Present value interest accretion 862 Payments (3,750 ) Ending balance, December 31, 2021 $ 146,759 ( 1 The increase in the contingent consideration liability is due to the contingent consideration associated with the acquisitions of Chilicon, Off Grid Energy, and ecobee. Refer to Note 3, 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, Acquisition related costs Acquisition related costs are external costs the Company incurs to effect a business combination including legal fees, professional and advisory services, transaction taxes such as stamp tax, and insurance premiums. The Company accounts for acquisition related costs as expense in the period in which the costs are incurred and the services are received. Total acquisition related costs were $21,465, $1,411, and $1,851 for the years ended December 31, 2021, 2020 2019 Certain immaterial reclassifications have been made to the Company’s historical financial statements as the Company has elected to report acquisition related costs as a separate line item in its Consolidated Statements of Comprehensive Income, within operating expenses. Previously, acquisition related costs were included in the general and administrative line item within operating expenses in the Consolidated Statements of Comprehensive Income. For the years ended December 31, 2020, 2019, 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 October 1, 2021 , 2021 08 , Business Combinations – Accounting for Contract Assets and Contract Liabilities from Contracts with Customers 1 2 no 606, 3 |
Note 3 - Acquisitions
Note 3 - Acquisitions | 12 Months Ended |
Dec. 31, 2021 | |
Notes to Financial Statements | |
Business Combination Disclosure [Text Block] | 3. Acquisitions Fiscal 2021 Acquisition of Deep Sea On June 1, 2021, The Company recorded its preliminary purchase price allocation during the second 2021, third fourth 2021, not December 31, 2021. Acquisition of Chilicon On July 2, 2021, Cash $ 11,821 Deferred cash payment (1) 6,000 Common stock issued 12,000 Contingent consideration (2) 31,308 Total purchase price $ 61,129 ( 1 Payable on the third December 31, 2023. ( 2 Payable within 45 December 31, 2025. The Company recorded its preliminary purchase price allocation during the third 2021, fourth 2021, not December 31, 2021. Acquisition of Off Grid Energy On September 1, 2021, March 31, 2022. The Company recorded its preliminary purchase price allocation during the third 2021, fourth 2021, not December 31, 2021. Acquisition of ecobee On December 1, 2021, Cash $ 224,464 Common stock issued 420,774 Contingent consideration (1) 89,400 Total purchase price $ 734,638 ( 1 To be paid in the form of common stock issued upon achievement of certain performance targets at the end of each of the two June 30, 2022, June 30, 2023. The Company recorded its preliminary purchase price allocation during the fourth 2021 December 31, 2021. Other Acquisitions On September 1, 2021, On October 1, 2021, The combined purchase price for these acquisitions was $30,086 and was funded solely through cash on hand. The Company recorded its preliminary purchase price allocation for Apricity Code and Tank Utility during the third fourth 2021, two December 31, 2021. Fiscal 2020 Acquisition of Enbala On October 7, 2020, The Company finalized its purchase price allocation during the third 2021 not December 31, 2021. Other Acquisitions On July 1, 2020, On September 1, 2020, The combined purchase price for these acquisitions was $22,958 and was funded solely through cash on hand. The Company finalized its purchase price allocation for these two third 2021 not December 31, 2021. Fiscal 2019 Acquisition of Pika On April 26, 2019, The Company finalized the Pika purchase price allocation during the first 2020 not not December 31, 2021. Acquisition of Neurio On March 12, 2019, third 2019. The Company finalized the Neurio purchase price allocation during the first 2020 not December 31, 2021. Other Acquisitions In February 2019, December 31, 2021. Summary Purchase Price Allocations The fair values assigned to certain assets acquired and liabilities assumed for all acquisitions completed during the reporting period, as of the acquisition dates, are as follows: 2021 Acquisitions Deep Sea ecobee All Other Total 2020 Acquisitions 2019 Acquisitions Accounts receivable $ 9,574 $ 23,337 $ 13,853 $ 46,764 $ 5,094 $ 4,643 Inventories 9,970 7,258 7,034 24,262 3,575 4,313 Prepaid expenses and other assets 826 5,531 6,594 12,951 858 304 Property and equipment 8,838 12,838 480 22,156 635 384 Intangible assets 171,437 564,400 74,394 810,231 26,235 79,200 Goodwill 266,427 231,213 82,121 579,761 40,395 41,428 Deferred income taxes - 52,329 6,547 58,876 - 3,217 Other assets 151 4,031 8,526 12,708 1,122 133 Total assets acquired 467,223 900,937 199,549 1,567,709 77,914 133,622 Accounts payable 8,998 29,855 7,675 46,528 4,088 4,380 Accrued wages and employee benefits 2,106 1,354 862 4,322 700 4,408 Other accrued liabilities 2,272 18,830 18,258 39,360 2,151 602 Short-term borrowings - - 800 800 - Current portion of long-term borrowings and finance lease obligations - 1,068 233 1,301 - 937 Deferred income taxes 33,057 81,429 18,169 132,655 3,827 9,958 Other long-term liabilities 90 24,097 7,275 31,462 2,208 778 Long-term debt - 9,666 1,624 11,290 - - Redeemable non-controlling interest - - - - - 3,165 Net assets acquired $ 420,700 $ 734,638 $ 144,653 $ 1,299,991 $ 64,940 $ 109,394 The allocations of the purchase price to identifiable assets and liabilities for the 2021 not 12 may 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, 2019. 1, Year Ended December 31, 2021 2020 2019 Net Sales: As reported $ 3,737,184 $ 2,485,200 $ 2,204,336 Pro forma 3,877,995 2,712,813 2,408,671 Net income attributable to Generac Holdings Inc.: As reported $ 550,494 $ 350,576 $ 252,007 Pro forma (1) 465,983 276,579 135,778 Net income attributable to Generac Holdings Inc. per common share - diluted As reported $ 8.30 $ 5.48 $ 4.03 Pro forma 7.16 4.29 2.15 ( 1 Includes additional pro forma intangible amortization from the effect of all acquisitions as though the transactions had occurred on January 1, 2019 December 31, 2021, 2020, 2019, This unaudited pro forma information is presented for informational purposes only and is not January 1, 2019. |
Note 4 - Redeemable Noncontroll
Note 4 - Redeemable Noncontrolling Interest | 12 Months Ended |
Dec. 31, 2021 | |
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. May 2021, three 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 subsequent 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, 2021 2020 2019 Balance at beginning of period $ 66,207 $ 61,227 $ 61,004 Acquisition of noncontrolling interest in Captiva - - 3,165 Net income 5,574 (2,829 ) 75 Foreign currency translation (3,669 ) 6,562 (1,764 ) Purchase of additional ownership interest (27,164 ) - - Redemption value adjustment 17,102 1,247 (1,253 ) Balance at end of period $ 58,050 $ 66,207 $ 61,227 |
Note 5 - Derivative Instruments
Note 5 - Derivative Instruments and Hedging Activities | 12 Months Ended |
Dec. 31, 2021 | |
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, 2021, no December 31, 2020, Because these contracts do not December 31, 2021, 2020 2019 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, 2021 2020 Because these contracts do not December 31, 2021, 2020 2019 Interest Rate Swaps In 2017, twenty eight December 31, 2021. December 2019, March 2020, three eleven December 31, 2021. December 31, 2021, 2020 2019 Fair Value The following table presents the fair value of the Company’s derivatives: December 31, December 31, Commodity contract $ - $ 1,386 Foreign currency contracts (36 ) (154 ) Interest rate swaps (2,074 ) (29,536 ) 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, 2021 December 31, 2020 December 31, 2021 2020 |
Note 6 - Accumulated Other Comp
Note 6 - Accumulated Other Comprehensive Loss | 12 Months Ended |
Dec. 31, 2021 | |
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, 2021 2020 Foreign Currency Translation Adjustments Unrealized Gain (Loss) on Cash Flow Hedges Total Beginning Balance – January 1, 2021 $ (11,674 ) $ (22,580 ) $ (34,254 ) Other comprehensive income (loss) before reclassifications (41,030 ) (1) 20,529 (2) (20,501 ) Amounts reclassified from AOCL - - - Net current-period other comprehensive income (loss) (41,030 ) 20,529 (20,501 ) Ending Balance – December 31, 2021 $ (52,704 ) $ (2,051 ) $ (54,755 ) Foreign Currency Translation Adjustments Unrealized Gain (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 ) (3) (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 ) ( 1 Represents unfavorable impact from the strengthening of the U.S. dollar against foreign currencies during the year ended December 31, 2021, ( 2 Represents unrealized gains of $27,462 on the interest rate swaps, net of tax effect of $(6,933) for the year ended December 31, 2021 ( 3 Represents unrealized losses of $(19,111) on the interest rate swaps, net of tax effect of $4,826 for the year ended December 31, 2020. |
Note 7 - Segment Reporting
Note 7 - Segment Reporting | 12 Months Ended |
Dec. 31, 2021 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | 7. Segment Reporting The Company has two reportable segments for financial reporting purposes – Domestic and International. The Domestic segment includes the legacy Generac business (excluding its traditional Latin American export operations), and the acquisitions that are based in the U.S. and Canada, all of which have revenues substantially derived from the U.S. and Canada. The International segment includes the legacy Generac business' Latin American export operations, and the Ottomotores, Tower Light, Pramac, Motortech, Selmec, Deep Sea, and Off Grid Energy acquisitions, all of which have revenues substantially derived from outside the U.S and Canada. Both reportable segments design and manufacture a wide range of energy technology solutions and other power products. The Company has multiple operating segments, which it aggregates into the two The Company's product offerings consist primarily of power generation equipment, energy storage systems, grid service solutions, 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, 2021 Product Classes Domestic International Total Residential products $ 2,366,908 $ 89,857 $ 2,456,765 Commercial & industrial products 556,520 442,478 998,998 Other 240,622 40,799 281,421 Total net sales $ 3,164,050 $ 573,134 $ 3,737,184 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 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, with power outputs up to 3,250kW. Other consists primarily of aftermarket service parts and product accessories sold to our customers, the amortization of extended warranty deferred revenue, remote monitoring and grid services subscription revenue, as well as certain 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, 2021 2020 2019 Domestic $ 795,417 $ 563,394 $ 428,667 International 66,008 20,379 25,448 Total adjusted EBITDA $ 861,425 $ 583,773 $ 454,115 Interest expense (32,953 ) (32,991 ) (41,544 ) Depreciation and amortization (92,041 ) (68,773 ) (60,767 ) Non-cash write-down and other adjustments (1) 3,070 327 (240 ) Non-cash share-based compensation expense (2) (23,954 ) (20,882 ) (16,694 ) Loss on extinguishment of debt (3) (831 ) - (926 ) Loss on pension settlement (4) - - (10,920 ) Transaction costs and credit facility fees (5) (22,357 ) (2,151 ) (2,724 ) Business optimization and other charges (6) (33 ) (12,158 ) (1,572 ) Other (800 ) (954 ) 879 Income before provision for income taxes $ 691,526 $ 446,191 $ 319,607 ( 1 Includes gains/losses on disposals of assets and gains on certain investments, unrealized mark-to-market adjustments on commodity contracts, certain foreign currency related adjustments, and certain purchase accounting adjustments. ( 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 (including acquisitions), 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 The following tables summarize additional financial information by reportable segment: Assets Year Ended December 31, 2021 2020 2019 Domestic $ 3,742,101 $ 2,659,597 $ 2,123,251 International 1,135,679 575,826 542,418 Total $ 4,877,780 $ 3,235,423 $ 2,665,669 Depreciation and Amortization Year Ended December 31, 2021 2020 2019 Domestic $ 66,675 $ 53,020 $ 46,145 International 25,366 15,753 14,764 Total $ 92,041 $ 68,773 $ 60,909 Capital Expenditures Year Ended December 31, 2021 2020 2019 Domestic $ 100,672 $ 51,867 $ 36,007 International 9,320 10,261 24,795 Total $ 109,992 $ 62,128 $ 60,802 The Company’s sales in the United States represent approximately 82%, 82%, and 75% of total sales for the years ended December 31, 2021, 2020 2019 December 31, 2021 2020, |
Note 8 - Balance Sheet Details
Note 8 - Balance Sheet Details | 12 Months Ended |
Dec. 31, 2021 | |
Notes to Financial Statements | |
Supplemental Balance Sheet Disclosures [Text Block] | 8. Balance Sheet Details Inventories consist of the following: December 31, 2021 2020 Raw material $ 727,162 $ 375,516 Work-in-process 10,756 6,833 Finished goods 351,787 220,968 Total $ 1,089,705 $ 603,317 As of December 31, 2021 2020 Property and equipment consists of the following: December 31, 2021 2020 Land and improvements $ 26,137 $ 18,363 Buildings and improvements 244,273 198,908 Machinery and equipment 186,611 153,696 Dies and tools 31,581 24,190 Vehicles 7,621 6,037 Office equipment and systems 125,048 107,923 Leasehold improvements 5,679 5,276 Construction in progress 47,602 30,227 Gross property and equipment 674,551 544,620 Accumulated depreciation (233,699 ) (200,684 ) Total $ 440,852 $ 343,936 Total property and equipment included finance leases of $36,776 and $27,269 at December 31, 2021 2020, 10, 842, Leases. |
Note 9 - Goodwill and Intangibl
Note 9 - Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2021 | |
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, 2021 2020 Domestic International Total 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 Acquisitions of businesses, net 293,614 284,447 578,061 Foreign currency translation (705 ) (22,910 ) (23,615 ) Balance at December 31, 2021 $ 995,444 $ 414,230 $ 1,409,674 Refer to Note 3, The details of the gross goodwill applicable to each reportable segment at December 31, 2021 2020 Year Ended December 31, 2021 Year Ended December 31, 2020 Gross Accumulated Impairment Net Gross Accumulated Impairment Net Domestic $ 1,498,637 $ (503,193 ) $ 995,444 $ 1,205,728 $ (503,193 ) $ 702,535 International 418,841 (4,611 ) $ 414,230 157,304 (4,611 ) $ 152,693 Total $ 1,917,478 $ (507,804 ) $ 1,409,674 $ 1,363,032 $ (507,804 ) $ 855,228 The following table summarizes intangible assets by major category as of December 31, 2021 2020 Weighted Average December 31, 2021 December 31, 2020 Amortization Years Gross Accumulated Amortization Net Book Value Gross Accumulated Amortization Net Book Value Finite-lived intangible assets: Tradenames 14 $ 162,563 $ (47,353 ) $ 115,210 $ 58,729 $ (40,891 ) $ 17,838 Customer lists 11 573,910 (335,188 ) 238,722 370,736 (321,531 ) 49,205 Patents and technology 14 662,341 (169,868 ) 492,473 233,271 (146,544 ) 86,727 Software - 1,046 (1,046 ) - 1,046 (1,046 ) - Non-compete/other 5 79,416 (12,980 ) 66,436 16,469 (6,537 ) 9,932 Total finite-lived intangible assets $ 1,479,276 $ (566,435 ) $ 912,841 $ 680,251 $ (516,549 ) $ 163,702 Indefinite-lived tradenames 128,321 - 128,321 128,321 - 128,321 Total intangible assets $ 1,607,597 $ (566,435 ) $ 1,041,162 $ 808,572 $ (516,549 ) $ 292,023 Amortization expense of intangible assets was $49,886, $32,280, and $28,644 in 2021 2020 2019 five 2022 $105,577; 2023 $101,076; 2024 $95,444; 2025 $91,218; 2026 |
Note 10 - Leases
Note 10 - Leases | 12 Months Ended |
Dec. 31, 2021 | |
Notes to Financial Statements | |
Lessee, Operating Leases and Finance Leases [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 arm's length transactions. The Company is a lessor of certain of its C&I mobile products as part of a rental fleet, as well as two 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, 2021 2020 2019 Operating lease cost $ 22,432 $ 18,648 $ 9,647 Finance lease cost: Amortization of ROU assets 3,187 2,587 2,531 Interest on lease liabilities 2,021 2,237 2,227 Total lease cost $ 27,640 $ 23,472 $ 14,405 As of January 1, 2019, 2016 02, December 31, 2021 December 31, 2020 Operating Leases Operating lease ROU assets (1) $ 101,266 $ 62,030 Operating lease liabilities - current (2) $ 23,549 $ 17,192 Operating lease liabilities - noncurrent (3) 80,370 46,558 Total operating lease liabilities $ 103,919 $ 63,750 Finance Leases Finance lease ROU assets, gross $ 47,119 $ 34,929 Accumulated depreciation - finance lease ROU assets (10,343 ) (7,660 ) Finance lease ROU assets, net (4) $ 36,776 $ 27,269 Finance lease liabilities - current (5) $ 4,209 $ 2,311 Finance lease liabilities - noncurrent (6) 34,966 25,060 Total finance lease liabilities $ 39,175 $ 27,371 ( 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, 2021 2020 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 21,250 $ 18,412 $ 10,125 Operating cash flows from finance leases 1,972 1,871 1,864 Financing cash flows from finance leases 4,679 3,957 3,237 ROU assets obtained in exchange for lease liabilities Operating leases 55,057 41,678 4,021 Finance leases 4,026 3,737 8,797 Weighted average remaining lease term and discount rate information related to the Company’s leases as of December 31, 2021 2020 December 31, 2021 December 31, 2020 Weighted average remaining lease term (in years) Operating Leases 5.21 4.92 Finance Leases 11.94 12.90 Weighted average discount rate Operating Leases 3.58 % 4.48 % Finance Leases 7.43 % 7.66 % The maturities of the Company’s lease liabilities as of December 31, 2021 As of December 31, 2021 Finance Leases Operating Leases 2022 $ 7,085 $ 26,615 2023 6,014 26,220 2024 5,835 25,062 2025 5,432 15,751 2026 5,091 6,469 After 2026 30,646 15,047 Total minimum lease payments 60,103 115,164 Interest component (20,928 ) (11,245 ) Present value of minimum lease payments $ 39,175 $ 103,919 |
Note 11 - Product Warranty Obli
Note 11 - Product Warranty Obligations | 12 Months Ended |
Dec. 31, 2021 | |
Notes to Financial Statements | |
Product Warranty Disclosure [Text Block] | 11. 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, 2021 2020 2019 Balance at beginning of period $ 59,218 $ 49,316 $ 41,785 Product warranty reserve assumed in acquisition 3,932 124 1,062 Payments (42,682 ) (33,496 ) (26,096 ) Provision for warranty issued 69,280 42,093 32,060 Changes in estimates for pre-existing warranties 4,465 1,181 505 Balance at end of period $ 94,213 $ 59,218 $ 49,316 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, 2021 2020 2019 Balance at beginning of period $ 89,788 $ 78,738 $ 68,340 Extended warranty contracts issued 41,560 26,968 24,483 Amortization of extended warranty contracts (19,701 ) (15,918 ) (14,085 ) Balance at end of period $ 111,647 $ 89,788 $ 78,738 The timing of recognition of the Company’s deferred revenue balance related to extended warranties at December 31, 2021 2022 $ 21,210 2023 22,051 2024 19,282 2025 15,413 After 2025 33,691 Total $ 111,647 The Company has a post-sale extended warranty marketing program with a third third December 31, 2021 2020 December 31, 2021, 2020 2019 Standard product warranty obligations and extended warranty related deferred revenues are included in the consolidated balance sheets as follows: December 31, 2021 2020 Product warranty liability Current portion - other accrued liabilities $ 59,052 $ 37,417 Long-term portion - other long-term liabilities 35,161 21,801 Total $ 94,213 $ 59,218 Deferred revenue related to extended warranties Current portion - other accrued liabilities $ 20,556 $ 18,857 Long-term portion - other long-term liabilities 91,091 70,931 Total $ 111,647 $ 89,788 |
Note 12 - Credit Agreements
Note 12 - Credit Agreements | 12 Months Ended |
Dec. 31, 2021 | |
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, 2021 2020 ABL facility $ - $ - Other lines of credit 72,035 39,282 Total $ 72,035 $ 39,282 As of December 31, 2021 2020, Long-term borrowings are included in the consolidated balance sheets as follows: December 31, 2021 2020 Term loan $ 780,000 $ 830,000 Original issue discount and deferred financing costs (13,214 ) (15,450 ) ABL facility 100,000 - Finance lease obligation 39,175 27,371 Other 2,060 3,990 Total 908,020 845,911 Less: current portion of debt 1,721 1,836 Less: current portion of finance lease obligation 4,209 2,311 Total $ 902,091 $ 841,764 Maturities of long-term borrowings outstanding at December 31, 2021 10, 2022 $ 1,765 2023 59 2024 59 2025 92 2026 880,034 After 2026 51 Total $ 882,060 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 December 2019, May 31, 2023 December 13, 2026, 470 50, fourth 2019. In connection with our Term Loan amendment in December 2019, The Term Loan does not 1.00 December 31, 2021 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 May 27, 2026. first second In May 2021, June 12, 2023 May 27, 2026 ( In connection with the ABL Facility amendment in May 2021, In May 2021, second 2021 December 31, 2021 |
Note 13 - Stock Repurchase Prog
Note 13 - Stock Repurchase Programs | 12 Months Ended |
Dec. 31, 2021 | |
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, 2021, December 31, 2020 2019, not August 2015), |
Note 14 - Earnings Per Share
Note 14 - Earnings Per Share | 12 Months Ended |
Dec. 31, 2021 | |
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, 2021 2020 2019 Numerator Net income attributable to Generac Holdings Inc. $ 550,494 $ 350,576 $ 252,007 Redeemable noncontrolling interest redemption value adjustment (17,102 ) (1,247 ) 1,253 Net income attributable to common shareholders $ 533,392 $ 349,329 $ 253,260 Denominator Weighted average shares, basic 62,686,001 62,280,889 61,926,986 Dilutive effect of stock compensation awards (1) 1,534,603 1,456,845 938,460 Dilutive effect of contingently issued shares 32,804 - - Diluted shares 64,253,408 63,737,734 62,865,446 Net income attributable to common shareholders per share Basic $ 8.51 $ 5.61 $ 4.09 Diluted $ 8.30 $ 5.48 $ 4.03 ( 1 There were no December 31, 2021, 2020 2019. |
Note 15 - Income Taxes
Note 15 - Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
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, 2021 2020 2019 Current: Federal $ 105,236 $ 62,714 $ 41,686 State 21,295 13,071 4,211 Foreign 10,536 1,974 2,660 137,067 77,759 48,557 Deferred: Federal 10,518 20,452 19,393 State (3,728 ) 1,243 1,390 Foreign (7,863 ) (1,197 ) (1,263 ) (1,073 ) 20,498 19,520 Change in valuation allowance (1,037 ) 716 (778 ) Provision for income taxes $ 134,957 $ 98,973 $ 67,299 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, 2021 no 2018. 2007 2020 2009 2020. 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, 2021 2020 Deferred tax assets: Accrued expenses $ 37,797 $ 24,358 Deferred revenue 27,003 15,851 Inventories 14,907 11,795 Stock-based compensation 10,202 8,348 Operating loss and credit carryforwards 68,368 31,275 Bad debt 1,253 1,633 Other 12,203 8,558 Valuation allowance (7,874 ) (5,740 ) Total deferred tax assets 163,859 96,078 Deferred tax liabilities: Goodwill and intangible assets 328,162 171,831 Depreciation 21,340 33,716 Debt refinancing costs 2,916 3,544 Prepaid expenses 1,664 1,259 Total deferred tax liabilities 354,082 210,350 Net deferred tax liabilities $ (190,223 ) $ (114,272 ) As of December 31, 2021 2020 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 2021 At December 31, 2021 2028 2035. Changes in the Company’s gross liability for unrecognized tax benefits, excluding interest and penalties, were as follows: December 31, 2021 2020 Unrecognized tax benefit, beginning of period $ 7,613 $ 6,720 Increase in unrecognized tax benefit for positions taken in prior period 272 332 Increase in unrecognized tax benefit for positions taken in current period 990 750 Statute of limitation expirations (228 ) (189 ) Settlements - - Unrecognized tax benefit, end of period $ 8,647 $ 7,613 The unrecognized tax benefit as of December 31, 2021 2020 As of December 31, 2021 2020 The Company does not December 31, 2022. A reconciliation of the statutory tax rates and the effective tax rates for the years ended December 31, 2021, 2020 2019 Year Ended December 31, 2021 2020 2019 U.S. statutory rate 21.0 % 21.0 % 21.0 % State taxes 4.3 4.3 4.3 State tax rate differential 0.0 0.0 (1.0 ) Research and development credits (1.0 ) (1.1 ) (0.8 ) State credits (1.1 ) (1.5 ) (1.0 ) Share-based compensation (3.8 ) (1.0 ) (0.6 ) Nondeductible U.S. compensation 1.5 0.0 0.0 Foreign tax deduction (1.5 ) 0.0 0.0 Foreign deferred tax rate change 1.2 0.0 0.0 Other (1.1 ) 0.5 (0.8 ) Effective tax rate 19.5 % 22.2 % 21.1 % |
Note 16 - Benefit Plans
Note 16 - Benefit Plans | 12 Months Ended |
Dec. 31, 2021 | |
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 $24,189, $24,617, and $18,290 for the years ended December 31, 2021, 2020 2019 The Company’s foreign subsidiaries participate in government sponsored medical benefit plans and other local 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, 2021 2020 2019 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, 2021 | |
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. 2010 December 31, 2021, 2020 2019 On June 13, 2019, 2019 2019 2019 no may 2010 2019 2019 2019 December 31, 2021, 2020 2019, Stock Options 2021 2020 2019 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 8,608, 24,070, and 32,211 for the years ended December 31, 2021 2020 2019 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 $38,787, $13,089, and $9,395 for the years ended December 31, 2021 2020 2019 Total payments made by the Company to the taxing authorities for the employees’ tax obligations related to stock option exercises were $31,680, $7,297, and $3,360 for the years ended December 31, 2021 2020 2019 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 2021 2020 2019 Year Ended December 31, 2021 2020 2019 Weighted average grant date fair value $ 129.47 $ 35.79 $ 19.33 Assumptions: Expected stock price volatility 37 % 32 % 33 % Risk free interest rate 0.45 % 1.56 % 2.52 % 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, 2021, 2020 2019 Number of Options Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term (in years) Aggregate Intrinsic Value ($ in thousands) 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 Granted 70,392 335.70 Exercised (229,921 ) 45.95 Forfeited (27,030 ) 63.27 Outstanding as of December 31, 2021 1,342,131 64.29 5.5 $ 386,069 Exercisable as of December 31, 2021 896,456 42.04 4.4 $ 277,794 As of December 31, 2021 December 31, 2021 2020 2019 Restricted Stock three three may 2019 2019 2021, 2020 2020 2022, 2021 2021 2023. 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 80,583, 70,718, and 55,953 for the years ended December 31, 2021 2020 2019 December 31, 2021 2020 2019 A summary of the Company's restricted stock activity for the years ended December 31, 2021, 2020 2019 Shares Weighted-Average Grant-Date Fair Value 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 Granted 126,339 223.09 Vested (202,327 ) 58.99 Forfeited (14,241 ) 138.64 Non-vested as of December 31, 2021 365,965 124.25 As of December 31, 2021 December 31, 2021 2020 2019 During 2021 2020 2019 2021 2020 2019 2021 2020 2019 |
Note 18 - Commitments and Conti
Note 18 - Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2021 | |
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, 2021 2020 From time to time, we are involved in legal proceedings primarily involving product liability, regulatory, and employment matters, as well as general commercial disputes arising in the ordinary course of our business. As of December 31, 2021, no Federal Securities Law Class Actions On August 20, 2021 August 31, 2021, Khami v. Generac Holdings Inc., et al., No. 2:21 06777, Procter v. Generac Holdings Inc., et al., No. 2:21 07009. In re Generac Holdings Securities Litigation, No. 21 1342, February 14, 2022, not not |
Note 19 - Quarterly Financial I
Note 19 - Quarterly Financial Information (Unaudited) | 12 Months Ended |
Dec. 31, 2021 | |
Notes to Financial Statements | |
Quarterly Financial Information [Text Block] | 19. Quarterly Financial Information (Unaudited) Quarters Ended 2021 Q1 Q2 Q3 Q4 Net sales $ 807,434 $ 919,981 $ 942,698 $ 1,067,071 Gross profit 321,814 339,735 335,994 362,539 Operating income 189,124 182,952 173,579 175,481 Net income attributable to Generac Holdings Inc. 148,993 127,036 131,570 142,895 Net income attributable to common shareholders per common share - basic: $ 2.39 $ 2.06 $ 1.98 $ 2.09 Net income attributable to common shareholders per common share - diluted: $ 2.33 $ 2.01 $ 1.93 $ 2.04 Quarters Ended 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 $ 1.96 |
Note 20 - Valuation and Qualify
Note 20 - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2021 | |
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, 2021, 2020 2019 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, 2021 Allowance for credit losses $ 12,001 $ 206 $ - $ (1,640 ) $ 1,458 $ 12,025 Reserves for inventory 27,817 17,698 - (15,749 ) 3,771 33,537 Valuation of deferred tax assets 5,740 1,404 - (2,441 ) 3,171 7,874 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 ( 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, 2021 | |
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, 2021 | |
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 8% and 13% of accounts receivable at December 31, 2021 2020 No one December 31, 2021 2020 2019 |
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 and services 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, 2021, The following is a tabular reconciliation of the Company's allowance for credit losses: Year Ended December 31, 2021 Balance at beginning of period $ 12,001 Established for Acquisitions 1,458 Provision for credit losses 206 Charge-offs (1,198 ) Currency translation (442 ) Balance at end of period $ 12,025 |
Inventory, Policy [Policy Text Block] | Inventories Inventories are stated at the lower of cost or market, with cost determined 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 $42,155, $36,493, and $32,265 for the years ended December 31, 2021, 2020 2019 |
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 2021 2020 2019 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. $2,589, $2,598, and $4,712 of deferred financing costs and original issue discount were amortized to interest expense during fiscal years 2021 2020 2019 five 2022 $2,603; 2023 $2,652; 2024 $2,709; 2025 $2,753; 2026 $2,499. |
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, 2021 December 31, 2020 December 31, 2021 December 31, 2020 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 to utilities in certain circumstances. Total service revenues accounted for less than two December 31, 2021 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, 2021, 2020 2019 |
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 $104,303, $80,251, and $68,394 for the years ended December 31, 2021, 2020 2019 |
Foreign Currency Transactions and Translations Policy [Policy Text Block] | Foreign Currency Translation and Transactions Balance sheet amounts for non-U.S. Dollar functional currency subsidiaries 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 $768,119, was approximately $782,925 (Level 2 December 31, 2021 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. |
Fair value of Contingent Consideration in a Business Combination [Policy Text Block] | Contingent Consideration Certain of the Company's business combinations involve potential payment of future consideration that is contingent upon the achievement of certain milestones. As part of purchase accounting, a liability is recorded for the estimated fair value of the contingent consideration on the acquisition date. The fair value of the contingent consideration is remeasured at each reporting period, and the change in fair value is recognized within general and administrative expenses in the Company's consolidated statements of comprehensive income. This fair value measurement of contingent consideration is categorized as a Level 3 not The fair value of contingent consideration as of December 31, 2021 December 31, 2020 December 31, 2021, December 31, 2020, The following table provides a reconciliation of the activity for contingent consideration: Beginning balance, January 1, 2021 $ 5,888 Purchase price contingent consideration (1) 149,761 Changes in fair value (6,002 ) Present value interest accretion 862 Payments (3,750 ) Ending balance, December 31, 2021 $ 146,759 ( 1 The increase in the contingent consideration liability is due to the contingent consideration associated with the acquisitions of Chilicon, Off Grid Energy, and ecobee. Refer to Note 3, |
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, |
Acquisition Related Costs [Policy Text Block] | Acquisition related costs Acquisition related costs are external costs the Company incurs to effect a business combination including legal fees, professional and advisory services, transaction taxes such as stamp tax, and insurance premiums. The Company accounts for acquisition related costs as expense in the period in which the costs are incurred and the services are received. Total acquisition related costs were $21,465, $1,411, and $1,851 for the years ended December 31, 2021, 2020 2019 Certain immaterial reclassifications have been made to the Company’s historical financial statements as the Company has elected to report acquisition related costs as a separate line item in its Consolidated Statements of Comprehensive Income, within operating expenses. Previously, acquisition related costs were included in the general and administrative line item within operating expenses in the Consolidated Statements of Comprehensive Income. For the years ended December 31, 2020, 2019, |
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 October 1, 2021 , 2021 08 , Business Combinations – Accounting for Contract Assets and Contract Liabilities from Contracts with Customers 1 2 no 606, 3 |
Note 2 - Summary of Accountin_2
Note 2 - Summary of Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Notes Tables | |
Accounts Receivable, Allowance for Credit Loss [Table Text Block] | Year Ended December 31, 2021 Balance at beginning of period $ 12,001 Established for Acquisitions 1,458 Provision for credit losses 206 Charge-offs (1,198 ) Currency translation (442 ) Balance at end of period $ 12,025 |
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 |
Schedule of Business Acquisitions by Acquisition, Contingent Consideration [Table Text Block] | Beginning balance, January 1, 2021 $ 5,888 Purchase price contingent consideration (1) 149,761 Changes in fair value (6,002 ) Present value interest accretion 862 Payments (3,750 ) Ending balance, December 31, 2021 $ 146,759 |
Note 3 - Acquisitions (Tables)
Note 3 - Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Notes Tables | |
Schedule of Consideration Transferred for Business Acquisitions [Table Text Block] | Cash $ 11,821 Deferred cash payment (1) 6,000 Common stock issued 12,000 Contingent consideration (2) 31,308 Total purchase price $ 61,129 Cash $ 224,464 Common stock issued 420,774 Contingent consideration (1) 89,400 Total purchase price $ 734,638 |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | 2021 Acquisitions Deep Sea ecobee All Other Total 2020 Acquisitions 2019 Acquisitions Accounts receivable $ 9,574 $ 23,337 $ 13,853 $ 46,764 $ 5,094 $ 4,643 Inventories 9,970 7,258 7,034 24,262 3,575 4,313 Prepaid expenses and other assets 826 5,531 6,594 12,951 858 304 Property and equipment 8,838 12,838 480 22,156 635 384 Intangible assets 171,437 564,400 74,394 810,231 26,235 79,200 Goodwill 266,427 231,213 82,121 579,761 40,395 41,428 Deferred income taxes - 52,329 6,547 58,876 - 3,217 Other assets 151 4,031 8,526 12,708 1,122 133 Total assets acquired 467,223 900,937 199,549 1,567,709 77,914 133,622 Accounts payable 8,998 29,855 7,675 46,528 4,088 4,380 Accrued wages and employee benefits 2,106 1,354 862 4,322 700 4,408 Other accrued liabilities 2,272 18,830 18,258 39,360 2,151 602 Short-term borrowings - - 800 800 - Current portion of long-term borrowings and finance lease obligations - 1,068 233 1,301 - 937 Deferred income taxes 33,057 81,429 18,169 132,655 3,827 9,958 Other long-term liabilities 90 24,097 7,275 31,462 2,208 778 Long-term debt - 9,666 1,624 11,290 - - Redeemable non-controlling interest - - - - - 3,165 Net assets acquired $ 420,700 $ 734,638 $ 144,653 $ 1,299,991 $ 64,940 $ 109,394 |
Business Acquisition, Pro Forma Information, Nonrecurring Adjustments [Table Text Block] | Year Ended December 31, 2021 2020 2019 Net Sales: As reported $ 3,737,184 $ 2,485,200 $ 2,204,336 Pro forma 3,877,995 2,712,813 2,408,671 Net income attributable to Generac Holdings Inc.: As reported $ 550,494 $ 350,576 $ 252,007 Pro forma (1) 465,983 276,579 135,778 Net income attributable to Generac Holdings Inc. per common share - diluted As reported $ 8.30 $ 5.48 $ 4.03 Pro forma 7.16 4.29 2.15 |
Note 4 - Redeemable Noncontro_2
Note 4 - Redeemable Noncontrolling Interest (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Notes Tables | |
Redeemable Noncontrolling Interest [Table Text Block] | Year Ended December 31, 2021 2020 2019 Balance at beginning of period $ 66,207 $ 61,227 $ 61,004 Acquisition of noncontrolling interest in Captiva - - 3,165 Net income 5,574 (2,829 ) 75 Foreign currency translation (3,669 ) 6,562 (1,764 ) Purchase of additional ownership interest (27,164 ) - - Redemption value adjustment 17,102 1,247 (1,253 ) Balance at end of period $ 58,050 $ 66,207 $ 61,227 |
Note 5 - Derivative Instrumen_2
Note 5 - Derivative Instruments and Hedging Activities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Notes Tables | |
Schedule Of Derivative Assets (Liabilities) at Fair Value [Table Text Block] | December 31, December 31, Commodity contract $ - $ 1,386 Foreign currency contracts (36 ) (154 ) Interest rate swaps (2,074 ) (29,536 ) |
Note 6 - Accumulated Other Co_2
Note 6 - Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Notes Tables | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | Foreign Currency Translation Adjustments Unrealized Gain (Loss) on Cash Flow Hedges Total Beginning Balance – January 1, 2021 $ (11,674 ) $ (22,580 ) $ (34,254 ) Other comprehensive income (loss) before reclassifications (41,030 ) (1) 20,529 (2) (20,501 ) Amounts reclassified from AOCL - - - Net current-period other comprehensive income (loss) (41,030 ) 20,529 (20,501 ) Ending Balance – December 31, 2021 $ (52,704 ) $ (2,051 ) $ (54,755 ) Foreign Currency Translation Adjustments Unrealized Gain (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 ) (3) (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 ) |
Note 7 - Segment Reporting (Tab
Note 7 - Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Notes Tables | |
Disaggregation of Revenue [Table Text Block] | Net Sales by Segment Year Ended December 31, 2021 Product Classes Domestic International Total Residential products $ 2,366,908 $ 89,857 $ 2,456,765 Commercial & industrial products 556,520 442,478 998,998 Other 240,622 40,799 281,421 Total net sales $ 3,164,050 $ 573,134 $ 3,737,184 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 |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Adjusted EBITDA Year Ended December 31, 2021 2020 2019 Domestic $ 795,417 $ 563,394 $ 428,667 International 66,008 20,379 25,448 Total adjusted EBITDA $ 861,425 $ 583,773 $ 454,115 Interest expense (32,953 ) (32,991 ) (41,544 ) Depreciation and amortization (92,041 ) (68,773 ) (60,767 ) Non-cash write-down and other adjustments (1) 3,070 327 (240 ) Non-cash share-based compensation expense (2) (23,954 ) (20,882 ) (16,694 ) Loss on extinguishment of debt (3) (831 ) - (926 ) Loss on pension settlement (4) - - (10,920 ) Transaction costs and credit facility fees (5) (22,357 ) (2,151 ) (2,724 ) Business optimization and other charges (6) (33 ) (12,158 ) (1,572 ) Other (800 ) (954 ) 879 Income before provision for income taxes $ 691,526 $ 446,191 $ 319,607 Assets Year Ended December 31, 2021 2020 2019 Domestic $ 3,742,101 $ 2,659,597 $ 2,123,251 International 1,135,679 575,826 542,418 Total $ 4,877,780 $ 3,235,423 $ 2,665,669 Depreciation and Amortization Year Ended December 31, 2021 2020 2019 Domestic $ 66,675 $ 53,020 $ 46,145 International 25,366 15,753 14,764 Total $ 92,041 $ 68,773 $ 60,909 Capital Expenditures Year Ended December 31, 2021 2020 2019 Domestic $ 100,672 $ 51,867 $ 36,007 International 9,320 10,261 24,795 Total $ 109,992 $ 62,128 $ 60,802 |
Note 8 - Balance Sheet Details
Note 8 - Balance Sheet Details (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | December 31, 2021 2020 Raw material $ 727,162 $ 375,516 Work-in-process 10,756 6,833 Finished goods 351,787 220,968 Total $ 1,089,705 $ 603,317 |
Property, Plant and Equipment [Table Text Block] | December 31, 2021 2020 Land and improvements $ 26,137 $ 18,363 Buildings and improvements 244,273 198,908 Machinery and equipment 186,611 153,696 Dies and tools 31,581 24,190 Vehicles 7,621 6,037 Office equipment and systems 125,048 107,923 Leasehold improvements 5,679 5,276 Construction in progress 47,602 30,227 Gross property and equipment 674,551 544,620 Accumulated depreciation (233,699 ) (200,684 ) Total $ 440,852 $ 343,936 |
Note 9 - Goodwill and Intangi_2
Note 9 - Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Notes Tables | |
Schedule of Goodwill [Table Text Block] | Domestic International Total 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 Acquisitions of businesses, net 293,614 284,447 578,061 Foreign currency translation (705 ) (22,910 ) (23,615 ) Balance at December 31, 2021 $ 995,444 $ 414,230 $ 1,409,674 Year Ended December 31, 2021 Year Ended December 31, 2020 Gross Accumulated Impairment Net Gross Accumulated Impairment Net Domestic $ 1,498,637 $ (503,193 ) $ 995,444 $ 1,205,728 $ (503,193 ) $ 702,535 International 418,841 (4,611 ) $ 414,230 157,304 (4,611 ) $ 152,693 Total $ 1,917,478 $ (507,804 ) $ 1,409,674 $ 1,363,032 $ (507,804 ) $ 855,228 |
Schedule Of Intangible Assets [Table Text Block] | Weighted Average December 31, 2021 December 31, 2020 Amortization Years Gross Accumulated Amortization Net Book Value Gross Accumulated Amortization Net Book Value Finite-lived intangible assets: Tradenames 14 $ 162,563 $ (47,353 ) $ 115,210 $ 58,729 $ (40,891 ) $ 17,838 Customer lists 11 573,910 (335,188 ) 238,722 370,736 (321,531 ) 49,205 Patents and technology 14 662,341 (169,868 ) 492,473 233,271 (146,544 ) 86,727 Software - 1,046 (1,046 ) - 1,046 (1,046 ) - Non-compete/other 5 79,416 (12,980 ) 66,436 16,469 (6,537 ) 9,932 Total finite-lived intangible assets $ 1,479,276 $ (566,435 ) $ 912,841 $ 680,251 $ (516,549 ) $ 163,702 Indefinite-lived tradenames 128,321 - 128,321 128,321 - 128,321 Total intangible assets $ 1,607,597 $ (566,435 ) $ 1,041,162 $ 808,572 $ (516,549 ) $ 292,023 |
Note 10 - Leases (Tables)
Note 10 - Leases (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Notes Tables | |
Lease, Cost [Table Text Block] | Year Ended December 31, 2021 2020 2019 Operating lease cost $ 22,432 $ 18,648 $ 9,647 Finance lease cost: Amortization of ROU assets 3,187 2,587 2,531 Interest on lease liabilities 2,021 2,237 2,227 Total lease cost $ 27,640 $ 23,472 $ 14,405 |
Schedule of Components of Lease Assets and Liabilities [Table Text Block] | December 31, 2021 December 31, 2020 Operating Leases Operating lease ROU assets (1) $ 101,266 $ 62,030 Operating lease liabilities - current (2) $ 23,549 $ 17,192 Operating lease liabilities - noncurrent (3) 80,370 46,558 Total operating lease liabilities $ 103,919 $ 63,750 Finance Leases Finance lease ROU assets, gross $ 47,119 $ 34,929 Accumulated depreciation - finance lease ROU assets (10,343 ) (7,660 ) Finance lease ROU assets, net (4) $ 36,776 $ 27,269 Finance lease liabilities - current (5) $ 4,209 $ 2,311 Finance lease liabilities - noncurrent (6) 34,966 25,060 Total finance lease liabilities $ 39,175 $ 27,371 |
Schedule of Leases Cash Flow Information [Table Text Block] | Year Ended December 31, 2021 2020 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 21,250 $ 18,412 $ 10,125 Operating cash flows from finance leases 1,972 1,871 1,864 Financing cash flows from finance leases 4,679 3,957 3,237 ROU assets obtained in exchange for lease liabilities Operating leases 55,057 41,678 4,021 Finance leases 4,026 3,737 8,797 |
Lease, Term and Discount Rate [Table Text Block] | December 31, 2021 December 31, 2020 Weighted average remaining lease term (in years) Operating Leases 5.21 4.92 Finance Leases 11.94 12.90 Weighted average discount rate Operating Leases 3.58 % 4.48 % Finance Leases 7.43 % 7.66 % |
Operating and Finance Lease, Liability, Maturity [Table Text Block] | As of December 31, 2021 Finance Leases Operating Leases 2022 $ 7,085 $ 26,615 2023 6,014 26,220 2024 5,835 25,062 2025 5,432 15,751 2026 5,091 6,469 After 2026 30,646 15,047 Total minimum lease payments 60,103 115,164 Interest component (20,928 ) (11,245 ) Present value of minimum lease payments $ 39,175 $ 103,919 |
Note 11 - Product Warranty Ob_2
Note 11 - Product Warranty Obligations (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Notes Tables | |
Schedule of Product Warranty Liability [Table Text Block] | Year Ended December 31, 2021 2020 2019 Balance at beginning of period $ 59,218 $ 49,316 $ 41,785 Product warranty reserve assumed in acquisition 3,932 124 1,062 Payments (42,682 ) (33,496 ) (26,096 ) Provision for warranty issued 69,280 42,093 32,060 Changes in estimates for pre-existing warranties 4,465 1,181 505 Balance at end of period $ 94,213 $ 59,218 $ 49,316 Year Ended December 31, 2021 2020 2019 Balance at beginning of period $ 89,788 $ 78,738 $ 68,340 Extended warranty contracts issued 41,560 26,968 24,483 Amortization of extended warranty contracts (19,701 ) (15,918 ) (14,085 ) Balance at end of period $ 111,647 $ 89,788 $ 78,738 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Table Text Block] | 2022 $ 21,210 2023 22,051 2024 19,282 2025 15,413 After 2025 33,691 Total $ 111,647 |
Product Warranty Obligations Included In Consolidated Balance Sheet [Table Text Block] | December 31, 2021 2020 Product warranty liability Current portion - other accrued liabilities $ 59,052 $ 37,417 Long-term portion - other long-term liabilities 35,161 21,801 Total $ 94,213 $ 59,218 Deferred revenue related to extended warranties Current portion - other accrued liabilities $ 20,556 $ 18,857 Long-term portion - other long-term liabilities 91,091 70,931 Total $ 111,647 $ 89,788 |
Note 12 - Credit Agreements (Ta
Note 12 - Credit Agreements (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Notes Tables | |
Schedule of Short-term Debt [Table Text Block] | December 31, 2021 2020 ABL facility $ - $ - Other lines of credit 72,035 39,282 Total $ 72,035 $ 39,282 |
Schedule of Long-term Debt Instruments [Table Text Block] | December 31, 2021 2020 Term loan $ 780,000 $ 830,000 Original issue discount and deferred financing costs (13,214 ) (15,450 ) ABL facility 100,000 - Finance lease obligation 39,175 27,371 Other 2,060 3,990 Total 908,020 845,911 Less: current portion of debt 1,721 1,836 Less: current portion of finance lease obligation 4,209 2,311 Total $ 902,091 $ 841,764 |
Schedule of Maturities of Long-term Debt [Table Text Block] | 2022 $ 1,765 2023 59 2024 59 2025 92 2026 880,034 After 2026 51 Total $ 882,060 |
Note 14 - Earnings Per Share (T
Note 14 - Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Year Ended December 31, 2021 2020 2019 Numerator Net income attributable to Generac Holdings Inc. $ 550,494 $ 350,576 $ 252,007 Redeemable noncontrolling interest redemption value adjustment (17,102 ) (1,247 ) 1,253 Net income attributable to common shareholders $ 533,392 $ 349,329 $ 253,260 Denominator Weighted average shares, basic 62,686,001 62,280,889 61,926,986 Dilutive effect of stock compensation awards (1) 1,534,603 1,456,845 938,460 Dilutive effect of contingently issued shares 32,804 - - Diluted shares 64,253,408 63,737,734 62,865,446 Net income attributable to common shareholders per share Basic $ 8.51 $ 5.61 $ 4.09 Diluted $ 8.30 $ 5.48 $ 4.03 |
Note 15 - Income Taxes (Tables)
Note 15 - Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Notes Tables | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | Year Ended December 31, 2021 2020 2019 Current: Federal $ 105,236 $ 62,714 $ 41,686 State 21,295 13,071 4,211 Foreign 10,536 1,974 2,660 137,067 77,759 48,557 Deferred: Federal 10,518 20,452 19,393 State (3,728 ) 1,243 1,390 Foreign (7,863 ) (1,197 ) (1,263 ) (1,073 ) 20,498 19,520 Change in valuation allowance (1,037 ) 716 (778 ) Provision for income taxes $ 134,957 $ 98,973 $ 67,299 |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | December 31, 2021 2020 Deferred tax assets: Accrued expenses $ 37,797 $ 24,358 Deferred revenue 27,003 15,851 Inventories 14,907 11,795 Stock-based compensation 10,202 8,348 Operating loss and credit carryforwards 68,368 31,275 Bad debt 1,253 1,633 Other 12,203 8,558 Valuation allowance (7,874 ) (5,740 ) Total deferred tax assets 163,859 96,078 Deferred tax liabilities: Goodwill and intangible assets 328,162 171,831 Depreciation 21,340 33,716 Debt refinancing costs 2,916 3,544 Prepaid expenses 1,664 1,259 Total deferred tax liabilities 354,082 210,350 Net deferred tax liabilities $ (190,223 ) $ (114,272 ) |
Schedule of Unrecognized Tax Benefits Roll Forward [Table Text Block] | December 31, 2021 2020 Unrecognized tax benefit, beginning of period $ 7,613 $ 6,720 Increase in unrecognized tax benefit for positions taken in prior period 272 332 Increase in unrecognized tax benefit for positions taken in current period 990 750 Statute of limitation expirations (228 ) (189 ) Settlements - - Unrecognized tax benefit, end of period $ 8,647 $ 7,613 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | Year Ended December 31, 2021 2020 2019 U.S. statutory rate 21.0 % 21.0 % 21.0 % State taxes 4.3 4.3 4.3 State tax rate differential 0.0 0.0 (1.0 ) Research and development credits (1.0 ) (1.1 ) (0.8 ) State credits (1.1 ) (1.5 ) (1.0 ) Share-based compensation (3.8 ) (1.0 ) (0.6 ) Nondeductible U.S. compensation 1.5 0.0 0.0 Foreign tax deduction (1.5 ) 0.0 0.0 Foreign deferred tax rate change 1.2 0.0 0.0 Other (1.1 ) 0.5 (0.8 ) Effective tax rate 19.5 % 22.2 % 21.1 % |
Note 17 - Share Plans (Tables)
Note 17 - Share Plans (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Notes Tables | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | Year Ended December 31, 2021 2020 2019 Weighted average grant date fair value $ 129.47 $ 35.79 $ 19.33 Assumptions: Expected stock price volatility 37 % 32 % 33 % Risk free interest rate 0.45 % 1.56 % 2.52 % 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, 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 Granted 70,392 335.70 Exercised (229,921 ) 45.95 Forfeited (27,030 ) 63.27 Outstanding as of December 31, 2021 1,342,131 64.29 5.5 $ 386,069 Exercisable as of December 31, 2021 896,456 42.04 4.4 $ 277,794 |
Share-based Payment Arrangement, Restricted Stock Unit, Activity [Table Text Block] | Shares Weighted-Average Grant-Date Fair Value 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 Granted 126,339 223.09 Vested (202,327 ) 58.99 Forfeited (14,241 ) 138.64 Non-vested as of December 31, 2021 365,965 124.25 |
Note 19 - Quarterly Financial_2
Note 19 - Quarterly Financial Information (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Notes Tables | |
Quarterly Financial Information [Table Text Block] | Quarters Ended 2021 Q1 Q2 Q3 Q4 Net sales $ 807,434 $ 919,981 $ 942,698 $ 1,067,071 Gross profit 321,814 339,735 335,994 362,539 Operating income 189,124 182,952 173,579 175,481 Net income attributable to Generac Holdings Inc. 148,993 127,036 131,570 142,895 Net income attributable to common shareholders per common share - basic: $ 2.39 $ 2.06 $ 1.98 $ 2.09 Net income attributable to common shareholders per common share - diluted: $ 2.33 $ 2.01 $ 1.93 $ 2.04 Quarters Ended 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 $ 1.96 |
Note 20 - Valuation and Quali_2
Note 20 - Valuation and Qualifying Accounts (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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, 2021 Allowance for credit losses $ 12,001 $ 206 $ - $ (1,640 ) $ 1,458 $ 12,025 Reserves for inventory 27,817 17,698 - (15,749 ) 3,771 33,537 Valuation of deferred tax assets 5,740 1,404 - (2,441 ) 3,171 7,874 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 |
Note 2 - Summary of Accountin_3
Note 2 - Summary of Accounting Policies (Details Textual) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Accounts Receivable, before Allowance for Credit Loss | $ 558,491 | ||
Accounts Receivable, Allowance for Credit Loss, Ending Balance | 12,025 | $ 12,001 | |
Depreciation, Total | 42,155 | 36,493 | $ 32,265 |
Goodwill and Intangible Asset Impairment, Total | 0 | 0 | 0 |
Amortization of Financing Costs and Debt Discount Premium | 2,589 | 2,598 | 4,712 |
Deferred Costs Amortization Expense, Next Twelve Months | 2,603 | ||
Deferred Costs Amortization Expense, Year Two | 2,652 | ||
Deferred Costs Amortization Expense, Year Three | 2,709 | ||
Deferred Costs Amortization Expense, Year Four | 2,753 | ||
Deferred Costs Amortization Expense, Year Five | 2,499 | ||
Contract with Customer, Liability, Total | 27,388 | 25,710 | |
Contract with Customer, Liability, Revenue Recognized | 25,184 | ||
Advertising Expense | 66,660 | 53,678 | 44,153 |
Research and Development Expense, Total | 104,303 | 80,251 | 68,394 |
Business Combination, Contingent Consideration, Liability, Total | 146,759 | 5,888 | |
Business Combination, Acquisition Related Costs | 21,465 | 1,411 | 1,851 |
Reclassified From General and Administrative Expense to Acquisition Related Costs [Member] | |||
Business Combination, Acquisition Related Costs | 1,411 | $ 1,851 | |
Other Accrued Liabilities [Member] | |||
Business Combination, Contingent Consideration, Liability, Total | 68,665 | $ 5,888 | |
Other Long-term Liabilities [Member] | |||
Business Combination, Contingent Consideration, Liability, Total | 78,094 | ||
Fair Value, Inputs, Level 2 [Member] | |||
Debt Instrument, Fair Value Disclosure, Total | 782,925 | ||
Term Loan [Member] | |||
Long-term Debt, Total | $ 768,119 | ||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | One Customer [Member] | |||
Concentration Risk, Percentage | 8.00% | 13.00% | |
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | |||
Number of Major Customers | 0 | 0 | 0 |
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | No Customer [Member] | |||
Concentration Risk, Percentage | 6.00% | 6.00% | 5.00% |
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, 2021USD ($) | |
Balance | $ 12,001 |
Established for Acquisitions | 1,458 |
Provision for credit losses | 206 |
Charge-offs | (1,198) |
Currency translation | (442) |
Balance | $ 12,025 |
Note 2 - Summary of Accountin_5
Note 2 - Summary of Accounting Policies - Property and Equipment Estimated Useful Lives (Details) | 12 Months Ended |
Dec. 31, 2021 | |
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 2 - Summary of Accountin_6
Note 2 - Summary of Accounting Policies - Reconciliation of Contingent Consideration (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Beginning balance, January 1, 2021 | $ 5,888 | |||
Present value interest accretion | 862 | |||
Payments | (3,750) | $ (4,000) | $ (5,550) | |
Ending balance, December 31, 2021 | 146,759 | 5,888 | ||
Contingent Consideration Liability [Member] | ||||
Beginning balance, January 1, 2021 | 5,888 | |||
Purchase price contingent consideration (1) | [1] | 149,761 | ||
Changes in fair value | (6,002) | |||
Payments | (3,750) | |||
Ending balance, December 31, 2021 | $ 146,759 | $ 5,888 | ||
[1] | The increase in the contingent consideration liability is due to the contingent consideration associated with the acquisitions of Chilicon, Off Grid Energy, and ecobee. Refer to Note 3, "Acquisitions," to the consolidated financial statements for further information. |
Note 3 - Acquisitions (Details
Note 3 - Acquisitions (Details Textual) - USD ($) $ in Thousands | Dec. 01, 2021 | Sep. 01, 2021 | Jul. 02, 2021 | Jun. 01, 2021 | Oct. 07, 2020 | Apr. 26, 2019 | Mar. 12, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Payments to Acquire Businesses, Net of Cash Acquired, Total | $ 713,471 | $ 64,797 | $ 112,001 | |||||||||
Goodwill, Ending Balance | 1,409,674 | 855,228 | 805,284 | |||||||||
Business Combination, Contingent Consideration, Liability, Total | 146,759 | 5,888 | ||||||||||
Acquisition of Deep Sea [Member] | ||||||||||||
Payments to Acquire Businesses, Net of Cash Acquired, Total | $ 420,700 | |||||||||||
Business Acquisition, Purchase Price Allocation, Intangible Assets Including Goodwill | 437,864 | |||||||||||
Goodwill, Ending Balance | $ 266,427 | 266,427 | ||||||||||
Acquisition of Chilicon [Member] | ||||||||||||
Business Acquisition, Purchase Price Allocation, Intangible Assets Including Goodwill | $ 69,992 | |||||||||||
Goodwill, Ending Balance | 37,492 | |||||||||||
Business Combination, Consideration Transferred, Total | $ 61,129 | |||||||||||
Acquisition of Off Grid Energy [Member] | ||||||||||||
Payments to Acquire Businesses, Net of Cash Acquired, Total | $ 53,438 | |||||||||||
Business Acquisition, Purchase Price Allocation, Intangible Assets Including Goodwill | 52,565 | |||||||||||
Goodwill, Ending Balance | 18,020 | |||||||||||
Business Combination, Contingent Consideration, Liability, Total | $ 29,054 | |||||||||||
ecobee Inc. [Member] | ||||||||||||
Business Acquisition, Purchase Price Allocation, Intangible Assets Including Goodwill | $ 795,613 | |||||||||||
Goodwill, Ending Balance | 231,213 | 231,213 | ||||||||||
Business Combination, Consideration Transferred, Total | $ 734,638 | |||||||||||
Other 2021 Acquisitions [Member] | ||||||||||||
Payments to Acquire Businesses, Net of Cash Acquired, Total | 30,086 | |||||||||||
Acquisition of Enbala [Member] | ||||||||||||
Payments to Acquire Businesses, Net of Cash Acquired, Total | $ 41,982 | |||||||||||
Business Acquisition, Purchase Price Allocation, Intangible Assets Including Goodwill | 46,338 | |||||||||||
Goodwill, Ending Balance | $ 27,038 | |||||||||||
Other 2020 Acquisitions [Member] | ||||||||||||
Payments to Acquire Businesses, Net of Cash Acquired, Total | $ 22,958 | |||||||||||
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 | |||||||||||
Neurio [Member] | ||||||||||||
Payments to Acquire Businesses, Net of Cash Acquired, Total | $ 59,071 | $ 7,922 | ||||||||||
Business Acquisition, Purchase Price Allocation, Intangible Assets Including Goodwill | 58,762 | |||||||||||
Goodwill, Ending Balance | $ 17,862 | |||||||||||
All Acquisitions [Member] | ||||||||||||
Proforma Amortization of Intangible Assets | $ 63,524,000 | $ 78,840,000 | $ 83,100,000 |
Note 3 - Acquisitions - The Com
Note 3 - Acquisitions - The Combined Fair Value of the Consideration Transferred for These Acquisitions (Details) - USD ($) $ in Thousands | Dec. 01, 2021 | Jul. 02, 2021 | |
Acquisition of Chilicon [Member] | |||
Cash | $ 11,821 | ||
Deferred cash payment (1) | [1] | 6,000 | |
Common stock issued | 12,000 | ||
Contingent consideration (2) | [2] | 31,308 | |
Total purchase price | $ 61,129 | ||
ecobee Inc. [Member] | |||
Cash | $ 224,464 | ||
Common stock issued | 420,774 | ||
Contingent consideration (2) | [3] | 89,400 | |
Total purchase price | $ 734,638 | ||
[1] | Payable on the third business day after December 31, 2023. | ||
[2] | Payable within 45 calendar days following the conclusion of the earnout period, December 31, 2025. To be paid in the form of common stock issued upon achievement of certain performance targets at the end of the earnout period. | ||
[3] | To be paid in the form of common stock issued upon achievement of certain performance targets at the end of each of the two earnout periods, ending June 30, 2022, and June 30, 2023. |
Note 3 - Acquisitions - Prelimi
Note 3 - Acquisitions - Preliminary Price Allocation (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 01, 2021 | Jun. 01, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Goodwill | $ 1,409,674 | $ 855,228 | $ 805,284 | ||
Acquisition of Deep Sea [Member] | |||||
Accounts receivable | 9,574 | ||||
Inventories | 9,970 | ||||
Prepaid expenses and other assets | 826 | ||||
Property and equipment | 8,838 | ||||
Intangible assets | 171,437 | ||||
Goodwill | 266,427 | $ 266,427 | |||
Deferred income taxes | 0 | ||||
Other assets | 151 | ||||
Total assets acquired | 467,223 | ||||
Accounts payable | 8,998 | ||||
Accrued wages and employee benefits | 2,106 | ||||
Other accrued liabilities | 2,272 | ||||
Short-term borrowings | 0 | ||||
Current portion of long-term borrowings and finance lease obligations | 0 | ||||
Deferred income taxes liability | 33,057 | ||||
Other long-term liabilities | 90 | ||||
Long-term debt | 0 | ||||
Redeemable non-controlling interest | 0 | ||||
Net assets acquired | 420,700 | ||||
ecobee Inc. [Member] | |||||
Accounts receivable | 23,337 | ||||
Inventories | 7,258 | ||||
Prepaid expenses and other assets | 5,531 | ||||
Property and equipment | 12,838 | ||||
Intangible assets | 564,400 | ||||
Goodwill | 231,213 | $ 231,213 | |||
Deferred income taxes | 52,329 | ||||
Other assets | 4,031 | ||||
Total assets acquired | 900,937 | ||||
Accounts payable | 29,855 | ||||
Accrued wages and employee benefits | 1,354 | ||||
Other accrued liabilities | 18,830 | ||||
Short-term borrowings | 0 | ||||
Current portion of long-term borrowings and finance lease obligations | 1,068 | ||||
Deferred income taxes liability | 81,429 | ||||
Other long-term liabilities | 24,097 | ||||
Long-term debt | 9,666 | ||||
Redeemable non-controlling interest | 0 | ||||
Net assets acquired | 734,638 | ||||
All Other 2021 Acquisitions [Member] | |||||
Accounts receivable | 13,853 | ||||
Inventories | 7,034 | ||||
Prepaid expenses and other assets | 6,594 | ||||
Property and equipment | 480 | ||||
Intangible assets | 74,394 | ||||
Goodwill | 82,121 | ||||
Deferred income taxes | 6,547 | ||||
Other assets | 8,526 | ||||
Total assets acquired | 199,549 | ||||
Accounts payable | 7,675 | ||||
Accrued wages and employee benefits | 862 | ||||
Other accrued liabilities | 18,258 | ||||
Short-term borrowings | 800 | ||||
Current portion of long-term borrowings and finance lease obligations | 233 | ||||
Deferred income taxes liability | 18,169 | ||||
Other long-term liabilities | 7,275 | ||||
Long-term debt | 1,624 | ||||
Redeemable non-controlling interest | 0 | ||||
Net assets acquired | 144,653 | ||||
The 2021 Acquisitions [Member] | |||||
Accounts receivable | 46,764 | ||||
Inventories | 24,262 | ||||
Prepaid expenses and other assets | 12,951 | ||||
Property and equipment | 22,156 | ||||
Intangible assets | 810,231 | ||||
Goodwill | 579,761 | ||||
Deferred income taxes | 58,876 | ||||
Other assets | 12,708 | ||||
Total assets acquired | 1,567,709 | ||||
Accounts payable | 46,528 | ||||
Accrued wages and employee benefits | 4,322 | ||||
Other accrued liabilities | 39,360 | ||||
Short-term borrowings | 800 | ||||
Current portion of long-term borrowings and finance lease obligations | 1,301 | ||||
Deferred income taxes liability | 132,655 | ||||
Other long-term liabilities | 31,462 | ||||
Long-term debt | 11,290 | ||||
Redeemable non-controlling interest | 0 | ||||
Net assets acquired | $ 1,299,991 | ||||
The 2020 Acquisitions [Member] | |||||
Accounts receivable | 5,094 | ||||
Inventories | 3,575 | ||||
Prepaid expenses and other assets | 858 | ||||
Property and equipment | 635 | ||||
Intangible assets | 26,235 | ||||
Goodwill | 40,395 | ||||
Deferred income taxes | 0 | ||||
Other assets | 1,122 | ||||
Total assets acquired | 77,914 | ||||
Accounts payable | 4,088 | ||||
Accrued wages and employee benefits | 700 | ||||
Other accrued liabilities | 2,151 | ||||
Short-term borrowings | 0 | ||||
Current portion of long-term borrowings and finance lease obligations | 0 | ||||
Deferred income taxes liability | 3,827 | ||||
Other long-term liabilities | 2,208 | ||||
Long-term debt | 0 | ||||
Redeemable non-controlling interest | 0 | ||||
Net assets acquired | $ 64,940 | ||||
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 | ||||
Short-term borrowings | |||||
Current portion of long-term borrowings and finance lease obligations | 937 | ||||
Deferred income taxes liability | 9,958 | ||||
Other long-term liabilities | 778 | ||||
Long-term debt | 0 | ||||
Redeemable non-controlling interest | 3,165 | ||||
Net assets acquired | $ 109,394 |
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, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Net sales | $ 1,067,071 | $ 942,698 | $ 919,981 | $ 807,434 | $ 761,082 | $ 701,355 | $ 546,848 | $ 475,915 | $ 3,737,184 | $ 2,485,200 | $ 2,204,336 | |
As reported | $ 142,895 | $ 131,570 | $ 127,036 | $ 148,993 | $ 125,001 | $ 114,970 | $ 66,145 | $ 44,460 | $ 550,494 | $ 350,576 | $ 252,007 | |
As reported (in dollars per share) | $ 2.04 | $ 1.93 | $ 2.01 | $ 2.33 | $ 1.96 | $ 1.82 | $ 1.02 | $ 0.68 | $ 8.30 | $ 5.48 | $ 4.03 | |
Pro Forma [Member] | ||||||||||||
Net sales | $ 3,877,995 | $ 2,712,813 | $ 2,408,671 | |||||||||
As reported | [1] | $ 465,983 | $ 276,579 | $ 135,778 | ||||||||
As reported (in dollars per share) | $ 7.16 | $ 4.29 | $ 2.15 | |||||||||
[1] | Includes additional intangible amortization from the effect of all acquisitions as though the transactions had occurred on January 1, 2019 of $63,524, $78,840, and $83,100 million for the years ended December 31, 2021, 2020, and 2019, respectively |
Note 4 - Redeemable Noncontro_3
Note 4 - Redeemable Noncontrolling Interest (Details Textual) - USD ($) $ in Thousands | Feb. 01, 2019 | May 31, 2021 | Feb. 28, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Mar. 01, 2016 |
Payments for Repurchase of Redeemable Noncontrolling Interest | $ 27,164 | $ 0 | $ 0 | ||||
Pramac [Member] | |||||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 20.00% | 35.00% | |||||
Captiva Energy Solutions [Member] | |||||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 49.00% | ||||||
Pramac [Member] | |||||||
Business Acquisition, Percentage of Voting Interests Acquired | 15.00% | 65.00% | |||||
Redeemable Noncontrolling Interest, Equity, Fair Value, Total | $ 34,253 | ||||||
Noncontrolling Interest Agreement, Extension of Term (Year) | 3 years | 5 years | |||||
Payments for Repurchase of Redeemable Noncontrolling Interest | $ 27,164 | ||||||
Business Combination, Step Acquisition, Equity Interest in Acquiree, including Subsequent Acquisition, Percentage, Total | 80.00% | ||||||
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, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Redemption value adjustment | $ (17,102) | $ (1,247) | $ 1,253 |
Redeemable Noncontrolling Interest [Member] | |||
Balance | 66,207 | 61,227 | 61,004 |
Acquisition of noncontrolling interest in Captiva | 0 | 0 | 3,165 |
Net income | 5,574 | (2,829) | 75 |
Foreign currency translation | (3,669) | 6,562 | (1,764) |
Purchase of additional ownership interest | (27,164) | 0 | 0 |
Redemption value adjustment | 17,102 | 1,247 | (1,253) |
Balance | $ 58,050 | $ 66,207 | $ 61,227 |
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, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2017 | |
Derivative, Gain (Loss) on Derivative, Net, Total | $ (416) | $ 355 | $ (1,195) | ||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification and Tax, Total | 20,529 | (14,285) | (13,855) | ||
Derivative Assets (Liabilities), Net Fair Value of Derivative Contracts, Excluding Impact of Credit Risk | $ (2,148) | $ (28,667) | |||
Commodity Contract [Member] | |||||
Derivative, Number of Instruments Held, Total | 0 | 1 | |||
Commodity Contract [Member] | Not Designated as Hedging Instrument [Member] | Cost of Sales [Member] | |||||
Derivative, Gain (Loss) on Derivative, Net, Total | $ 613 | $ 2,185 | (174) | ||
Foreign Exchange Contract [Member] | |||||
Derivative, Number of Instruments Held, Total | 11 | 44 | |||
Interest Rate Swap [Member] | |||||
Number of New Contracts Entered | 3 | 11 | 20 | ||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification and Tax, Total | $ 20,529 | $ (14,285) | $ (13,855) |
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, 2021 | Dec. 31, 2020 |
Commodity Contract [Member] | ||
Fair Value of Derivatives | $ 0 | $ 1,386 |
Foreign Exchange Contract [Member] | ||
Fair Value of Derivatives | (36) | (154) |
Interest Rate Swap [Member] | ||
Fair Value of Derivatives | $ (2,074) | $ (29,536) |
Note 6 - Accumulated Other Co_3
Note 6 - Accumulated Other Comprehensive Loss (Details Textual) - Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Other Comprehensive Income (Loss), before Reclassifications, before Tax | $ 27,462 | $ (19,111) |
Other Comprehensive Income (Loss) before Reclassifications, Tax, Total | $ (6,933) | $ 4,826 |
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, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |||
Balance | $ 1,390,204 | $ 1,032,851 | $ 761,261 | ||
Net current-period other comprehensive income (loss) | (20,501) | (9,337) | (1,104) | ||
Balance | 2,214,087 | 1,390,204 | 1,032,851 | ||
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | |||||
Balance | (11,674) | (16,622) | |||
Other comprehensive income (loss) before reclassifications | (41,030) | [1] | 4,948 | ||
Net current-period other comprehensive income (loss) | (41,030) | 4,948 | |||
Balance | (52,704) | (11,674) | (16,622) | ||
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent [Member] | |||||
Balance | (22,580) | (8,295) | |||
Other comprehensive income (loss) before reclassifications | 20,529 | [2] | (14,285) | [3] | |
Net current-period other comprehensive income (loss) | 20,529 | (14,285) | |||
Balance | (2,051) | (22,580) | (8,295) | ||
AOCI Attributable to Parent [Member] | |||||
Balance | (34,254) | (24,917) | (23,813) | ||
Other comprehensive income (loss) before reclassifications | (20,501) | (9,337) | |||
Amounts reclassified from AOCL | 0 | ||||
Net current-period other comprehensive income (loss) | (20,501) | (9,337) | |||
Balance | $ (54,755) | $ (34,254) | $ (24,917) | ||
[1] | Represents unfavorable impact from the strengthening of the U.S. dollar against foreign currencies during the year ended December 31, 2021, particularly the Euro and British Pound. | ||||
[2] | Represents unrealized gains of $27,462 on the interest rate swaps, net of tax effect of $(6,933) for the year ended December 31, 2021. | ||||
[3] | Represents unrealized losses of $(19,111) on the interest rate swaps, net of tax effect of $4,826 for the year ended December 31, 2020. |
Note 7 - Segment Reporting (Det
Note 7 - Segment Reporting (Details Textual) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Number of Reportable Segments | 2 | ||
Geographic Concentration Risk [Member] | Revenue Benchmark [Member] | UNITED STATES | |||
Concentration Risk, Percentage | 82.00% | 82.00% | 75.00% |
Geographic Concentration Risk [Member] | Net Assets, Geographic Area [Member] | UNITED STATES | |||
Concentration Risk, Percentage | 75.00% | 81.00% |
Note 7 - Segment Reporting - Ne
Note 7 - Segment Reporting - Net Sales by Products and Services (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Net sales | $ 1,067,071 | $ 942,698 | $ 919,981 | $ 807,434 | $ 761,082 | $ 701,355 | $ 546,848 | $ 475,915 | $ 3,737,184 | $ 2,485,200 | $ 2,204,336 |
Domestic [Member] | |||||||||||
Net sales | 3,164,050 | 2,088,808 | 1,742,898 | ||||||||
International [Member] | |||||||||||
Net sales | 573,134 | 396,392 | 461,438 | ||||||||
Residential Power Products [Member] | |||||||||||
Net sales | 2,456,765 | 1,556,501 | 1,143,723 | ||||||||
Residential Power Products [Member] | Domestic [Member] | |||||||||||
Net sales | 2,366,908 | 1,495,383 | 1,086,019 | ||||||||
Residential Power Products [Member] | International [Member] | |||||||||||
Net sales | 89,857 | 61,118 | 57,704 | ||||||||
Commercial and Industrial Power Products [Member] | |||||||||||
Net sales | 998,998 | 701,751 | 871,595 | ||||||||
Commercial and Industrial Power Products [Member] | Domestic [Member] | |||||||||||
Net sales | 556,520 | 404,867 | 513,482 | ||||||||
Commercial and Industrial Power Products [Member] | International [Member] | |||||||||||
Net sales | 442,478 | 296,884 | 358,113 | ||||||||
Other Products and Services [Member] | |||||||||||
Net sales | 281,421 | 226,948 | 189,018 | ||||||||
Other Products and Services [Member] | Domestic [Member] | |||||||||||
Net sales | 240,622 | 188,558 | 143,397 | ||||||||
Other Products and Services [Member] | International [Member] | |||||||||||
Net sales | $ 40,799 | $ 38,390 | $ 45,621 |
Note 7 - Segment Reporting - Se
Note 7 - Segment Reporting - Segment Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Total adjusted EBITDA | $ 861,425 | $ 583,773 | $ 454,115 | |
Interest expense | (32,953) | (32,991) | (41,544) | |
Depreciation and amortization | (92,041) | (68,773) | (60,767) | |
Non-cash write-down and other adjustments | [1] | 3,070 | 327 | (240) |
Non-cash share-based compensation expense | [2] | (23,954) | (20,882) | (16,694) |
Loss on extinguishment of debt | [3] | (831) | 0 | (926) |
Loss on pension settlement | [4] | 0 | 0 | (10,920) |
Transaction costs and credit facility fees | [5] | (22,357) | (2,151) | (2,724) |
Business optimization and other charges | [6] | (33) | (12,158) | (1,572) |
Other | (800) | (954) | 879 | |
Income before provision for income taxes | 691,526 | 446,191 | 319,607 | |
Assets | 4,877,780 | 3,235,423 | 2,665,669 | |
Depreciation and Amortization | 92,041 | 68,773 | 60,909 | |
Capital expenditures | 109,992 | 62,128 | 60,802 | |
Domestic [Member] | ||||
Total adjusted EBITDA | 795,417 | 563,394 | 428,667 | |
Assets | 3,742,101 | 2,659,597 | 2,123,251 | |
Depreciation and Amortization | 66,675 | 53,020 | 46,145 | |
Capital expenditures | 100,672 | 51,867 | 36,007 | |
International [Member] | ||||
Total adjusted EBITDA | 66,008 | 20,379 | 25,448 | |
Assets | 1,135,679 | 575,826 | 542,418 | |
Depreciation and Amortization | 25,366 | 15,753 | 14,764 | |
Capital expenditures | $ 9,320 | $ 10,261 | $ 24,795 | |
[1] | Includes gains/losses on disposal of assets and investments, unrealized mark-to-market adjustments on commodity contracts, certain foreign currency related adjustments, and certain purchase accounting adjustments. | |||
[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 (including acquisitions), 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, 2021, and December 31, 2019, represents severance and other charges related to the consolidation of certain of our facilities. 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. |
Note 8 - Balance Sheet Detail_2
Note 8 - Balance Sheet Details (Details Textual) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Other Inventory, Materials, Supplies and Merchandise under Consignment, Gross | $ 15,555 | $ 9,154 |
Finance Lease, Right-of-Use Asset, after Accumulated Amortization, Total | $ 36,776 | $ 27,269 |
Note 8 - Balance Sheet Detail_3
Note 8 - Balance Sheet Details - Inventories (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Raw material | $ 727,162 | $ 375,516 |
Work-in-process | 10,756 | 6,833 |
Finished goods | 351,787 | 220,968 |
Total | $ 1,089,705 | $ 603,317 |
Note 8 - Balance Sheet Detail_4
Note 8 - Balance Sheet Details - Property and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Property and equipment, gross | $ 674,551 | $ 544,620 |
Accumulated depreciation | (233,699) | (200,684) |
Total | 440,852 | 343,936 |
Land and Land Improvements [Member] | ||
Property and equipment, gross | 26,137 | 18,363 |
Building and Building Improvements [Member] | ||
Property and equipment, gross | 244,273 | 198,908 |
Machinery and Equipment [Member] | ||
Property and equipment, gross | 186,611 | 153,696 |
Dies and Tools [Member] | ||
Property and equipment, gross | 31,581 | 24,190 |
Vehicles [Member] | ||
Property and equipment, gross | 7,621 | 6,037 |
Office Equipment [Member] | ||
Property and equipment, gross | 125,048 | 107,923 |
Leasehold Improvements [Member] | ||
Property and equipment, gross | 5,679 | 5,276 |
Construction in Progress [Member] | ||
Property and equipment, gross | $ 47,602 | $ 30,227 |
Note 9 - Goodwill and Intangi_3
Note 9 - Goodwill and Intangible Assets (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Amortization of Intangible Assets, Total | $ 49,886 | $ 32,280 | $ 28,644 |
Finite-Lived Intangible Asset, Expected Amortization, Year One | 105,577 | ||
Finite-Lived Intangible Asset, Expected Amortization, Year Two | 101,076 | ||
Finite-Lived Intangible Asset, Expected Amortization, Year Three | 95,444 | ||
Finite-Lived Intangible Asset, Expected Amortization, Year Four | 91,218 | ||
Finite-Lived Intangible Asset, Expected Amortization, Year Five | $ 84,337 |
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, 2021 | Dec. 31, 2020 | |
Balance | $ 855,228 | $ 805,284 |
Acquisitions of businesses, net | 578,061 | 42,722 |
Foreign currency translation | (23,615) | 7,222 |
Balance | 1,409,674 | 855,228 |
Goodwill, gross | 1,917,478 | 1,363,032 |
Accumulated impairment | (507,804) | (507,804) |
Goodwill | 1,409,674 | 855,228 |
Domestic [Member] | ||
Balance | 702,535 | 659,209 |
Acquisitions of businesses, net | 293,614 | 42,722 |
Foreign currency translation | (705) | 604 |
Balance | 995,444 | 702,535 |
Goodwill, gross | 1,498,637 | 1,205,728 |
Accumulated impairment | (503,193) | (503,193) |
Goodwill | 995,444 | 702,535 |
International [Member] | ||
Balance | 152,693 | 146,075 |
Acquisitions of businesses, net | 284,447 | 0 |
Foreign currency translation | (22,910) | 6,618 |
Balance | 414,230 | 152,693 |
Goodwill, gross | 418,841 | 157,304 |
Accumulated impairment | (4,611) | (4,611) |
Goodwill | $ 414,230 | $ 152,693 |
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, 2021 | Dec. 31, 2020 | |
Finite-lived intangible assets, gross | $ 1,479,276 | $ 680,251 |
Finite-lived intangible assets, accumulated amortization | (566,435) | (516,549) |
Finite-lived intangible assets, net | 912,841 | 163,702 |
Indefinite-lived tradenames, gross | 128,321 | 128,321 |
Total intangible assets, gross | 1,607,597 | 808,572 |
Total intangible assets, net | $ 1,041,162 | 292,023 |
Trade Names [Member] | ||
Finite-lived intangible assets, useful life (Year) | 14 years | |
Finite-lived intangible assets, gross | $ 162,563 | 58,729 |
Finite-lived intangible assets, accumulated amortization | (47,353) | (40,891) |
Finite-lived intangible assets, net | $ 115,210 | 17,838 |
Customer Lists [Member] | ||
Finite-lived intangible assets, useful life (Year) | 11 years | |
Finite-lived intangible assets, gross | $ 573,910 | 370,736 |
Finite-lived intangible assets, accumulated amortization | (335,188) | (321,531) |
Finite-lived intangible assets, net | $ 238,722 | 49,205 |
Patents and Technology [Member] | ||
Finite-lived intangible assets, useful life (Year) | 14 years | |
Finite-lived intangible assets, gross | $ 662,341 | 233,271 |
Finite-lived intangible assets, accumulated amortization | (169,868) | (146,544) |
Finite-lived intangible assets, net | 492,473 | 86,727 |
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) | 5 years | |
Finite-lived intangible assets, gross | $ 79,416 | 16,469 |
Finite-lived intangible assets, accumulated amortization | (12,980) | (6,537) |
Finite-lived intangible assets, net | $ 66,436 | $ 9,932 |
Note 10 - Leases (Details Textu
Note 10 - Leases (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Jan. 01, 2019 | |
Retained Earnings (Accumulated Deficit), Ending Balance | $ 1,965,957 | $ 1,432,565 | |
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, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Operating lease cost | $ 22,432 | $ 18,648 | $ 9,647 |
Amortization of ROU assets | 3,187 | 2,587 | 2,531 |
Interest on lease liabilities | 2,021 | 2,237 | 2,227 |
Total lease cost | $ 27,640 | $ 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, 2021 | Dec. 31, 2020 | |
Finance lease ROU assets, gross | $ 47,119 | $ 34,929 | |
Accumulated depreciation - finance lease ROU assets | (10,343) | (7,660) | |
Finance lease ROU assets, net | 36,776 | 27,269 | |
Finance lease liabilities - current | 4,209 | 2,311 | |
Total finance lease liabilities | 39,175 | 27,371 | |
Operating Lease and Other Assets [Member] | |||
Operating lease ROU assets | [1] | 101,266 | 62,030 |
Other Accrued Liabilities [Member] | |||
Operating lease liabilities - current | [2] | 23,549 | 17,192 |
Operating Lease and Other Long-term Liabilities [Member] | |||
Operating lease liabilities - noncurrent | [3] | 80,370 | 46,558 |
Other Accrued Liabilities and Operating Lease and Other Long-term Liabilities [Member] | |||
Total operating lease liabilities | 103,919 | 63,750 | |
Finance Lease and Other Assets [Member] | |||
Finance lease ROU assets, net | [4] | 36,776 | 27,269 |
Current Portion of Long-term Borrowings and Finance Lease Obligations [Member] | |||
Finance lease liabilities - current | [5] | 4,209 | 2,311 |
Finance Lease and Other Long-term Liabilities [Member] | |||
Finance lease liabilities - noncurrent | [6] | 34,966 | 25,060 |
Other Accrued Liabilities and Finance Lease and Other Long-term Liabilities [Member] | |||
Total finance lease liabilities | $ 39,175 | $ 27,371 | |
[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 |
Note 10 - Leases - Supplement C
Note 10 - Leases - Supplement Cash Flow Information Related to Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Operating cash flows from operating leases | $ 21,250 | $ 18,412 | $ 10,125 |
Operating cash flows from finance leases | 1,972 | 1,871 | 1,864 |
Financing cash flows from finance leases | 4,679 | 3,957 | 3,237 |
Operating leases | 55,057 | 41,678 | 4,021 |
Finance leases | $ 4,026 | $ 3,737 | $ 8,797 |
Note 10 - Leases - Weighted Ave
Note 10 - Leases - Weighted Average Remaining Lease Term and Discount Rate Information (Details) | Dec. 31, 2021 | Dec. 31, 2020 |
Operating Leases (Year) | 5 years 2 months 15 days | 4 years 11 months 1 day |
Finance Leases (Year) | 11 years 11 months 8 days | 12 years 10 months 24 days |
Operating Leases | 3.58% | 4.48% |
Finance Leases | 7.43% | 7.66% |
Note 10 - Leases - Maturities o
Note 10 - Leases - Maturities of Lease liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
2022, finance leases | $ 7,085 | |
2022, operating leases | 26,615 | |
2023, finance leases | 6,014 | |
2023, operating leases | 26,220 | |
2024, finance leases | 5,835 | |
2024, operating leases | 25,062 | |
2025, finance leases | 5,432 | |
2025, operating leases | 15,751 | |
2026, finance leases | 5,091 | |
2026, operating leases | 6,469 | |
After 2023, finance leases | 30,646 | |
After 2023, operating leases | 15,047 | |
Total minimum lease payments, finance leases | 60,103 | |
Total minimum lease payments, operating leases | 115,164 | |
Interest component | (20,928) | |
Interest component | (11,245) | |
Present value of minimum lease payments, finance leases | 39,175 | $ 27,371 |
Other Accrued Liabilities and Operating Lease and Other Long-term Liabilities [Member] | ||
Operating Lease, Liability, Total | $ 103,919 | $ 63,750 |
Note 11 - Product Warranty Ob_3
Note 11 - Product Warranty Obligations (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Capitalized Contract Cost, Net, Total | $ 8,479 | $ 6,869 | |
Capitalized Contract Cost, Amortization | $ 1,739 | $ 1,303 | $ 869 |
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 - Reconciliation of Product Warranty Liability (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Balance at beginning of period | $ 59,218 | $ 49,316 | $ 41,785 |
Product warranty reserve assumed in acquisition | 3,932 | 124 | 1,062 |
Payments | (42,682) | (33,496) | (26,096) |
Provision for warranty issued | 69,280 | 42,093 | 32,060 |
Changes in estimates for pre-existing warranties | 4,465 | 1,181 | 505 |
Balance at end of period | 94,213 | 59,218 | 49,316 |
Balance at beginning of period | 89,788 | 78,738 | 68,340 |
Extended warranty contracts issued | 41,560 | 26,968 | 24,483 |
Amortization of extended warranty contracts | (19,701) | (15,918) | (14,085) |
Balance at end of period | $ 111,647 | $ 89,788 | $ 78,738 |
Note 11 - Product Warranty Ob_5
Note 11 - Product Warranty Obligations - Recognition of Deferred Revenue Related to Extended Warranties (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Revenue performance obligation | $ 111,647 |
Note 11 - Product Warranty Ob_6
Note 11 - Product Warranty Obligations - Recognition of Deferred Revenue Related to Extended Warranties 2 (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Revenue performance obligation | $ 111,647 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue performance obligation | 21,210 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue performance obligation | 22,051 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue performance obligation | 19,282 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | |
Revenue performance obligation | 15,413 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01 | |
Revenue performance obligation | $ 33,691 |
Note 11 - Product Warranty Ob_7
Note 11 - Product Warranty Obligations - Recognition of Deferred Revenue Related to Extended Warranties (Details) (Parentheticals) | Dec. 31, 2021 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue performance period (Year) | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue performance period (Year) | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue performance period (Year) | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | |
Revenue performance period (Year) | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01 | |
Revenue performance period (Year) | 1 year |
Note 11 - Product Warranty Ob_8
Note 11 - Product Warranty Obligations - Deferred Product Obligations (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Current portion - other accrued liabilities | $ 59,052 | $ 37,417 | ||
Long-term portion - other long-term liabilities | 35,161 | 21,801 | ||
Total | 94,213 | 59,218 | $ 49,316 | $ 41,785 |
Current portion - other accrued liabilities | 20,556 | 18,857 | ||
Long-term portion - other long-term liabilities | 91,091 | 70,931 | ||
Total | $ 111,647 | $ 89,788 | $ 78,738 | $ 68,340 |
Note 12 - Credit Agreements (De
Note 12 - Credit Agreements (Details Textual) - USD ($) $ in Thousands | May 31, 2013 | May 31, 2021 | May 31, 2015 | Jun. 30, 2021 | Dec. 31, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | May 01, 2021 | |
Gain (Loss) on Extinguishment of Debt, Total | [1] | $ (831) | $ 0 | $ (926) | ||||||
ABL Revolving Credit Facility [Member] | ||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 500,000 | $ 300,000 | ||||||||
Debt Issuance Costs, Net, Total | 920 | |||||||||
Line of Credit Facility, Incremental Capacity | 200,000 | $ 100,000 | ||||||||
Proceeds from Long-term Lines of Credit | $ 50,000 | |||||||||
Long-term Line of Credit, Total | 100,000 | |||||||||
Line of Credit Facility, Remaining Borrowing Capacity | 399,480 | |||||||||
Base Rate [Member] | ABL Revolving Credit Facility [Member] | ||||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.00% | |||||||||
Base Rate [Member] | Maximum [Member] | ABL Revolving Credit Facility [Member] | ||||||||||
Debt Instrument, Basis Spread on Variable Rate | 0.25% | |||||||||
Base Rate [Member] | Minimum [Member] | ABL Revolving Credit Facility [Member] | ||||||||||
Debt Instrument, Basis Spread on Variable Rate | 0.00% | |||||||||
Adjusted LIBOR Rate [Member] | ABL Revolving Credit Facility [Member] | ||||||||||
Debt Instrument, Basis Spread on Variable Rate | 2.00% | |||||||||
London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member] | ABL Revolving Credit Facility [Member] | ||||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.25% | |||||||||
London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | ABL Revolving Credit Facility [Member] | ||||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.00% | |||||||||
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 | $ 1,247 | 1,247 | ||||||||
Debt Instrument, Fee Amount | 432 | $ 432 | ||||||||
Repayments of Long-term Debt, Total | 49,000 | |||||||||
Gain (Loss) on Extinguishment of Debt, Total | $ (831) | $ (926) | ||||||||
Secured Leverage Ratio | 0.88 | |||||||||
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% | |||||||||
Term Loan [Member] | LIBOR Floor Rate [Member] | ||||||||||
Debt Instrument, Basis Spread on Variable Rate | 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, 2021 | Dec. 31, 2020 |
Short-term Borrowings | $ 72,035 | $ 39,282 |
ABL Revolving Credit Facility [Member] | ||
Short-term Borrowings | 0 | 0 |
Other Lines of Credit [Member] | ||
Short-term Borrowings | $ 72,035 | $ 39,282 |
Note 12 - Credit Agreements - L
Note 12 - Credit Agreements - Long-term Borrowings (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Term loan | $ 780,000 | $ 830,000 |
Original issue discount and deferred financing costs | (13,214) | (15,450) |
ABL facility | 100,000 | 0 |
Total finance lease liabilities | 39,175 | 27,371 |
Other | 2,060 | 3,990 |
Total | 908,020 | 845,911 |
Less: current portion of debt | 1,721 | 1,836 |
Finance lease liabilities - current | 4,209 | 2,311 |
Total | $ 902,091 | $ 841,764 |
Note 12 - Credit Agreements - M
Note 12 - Credit Agreements - Maturities of Long-term Borrowings Outstanding (Details) $ in Thousands | Dec. 31, 2021USD ($) |
2022 | $ 1,765 |
2023 | 59 |
2024 | 59 |
2025 | 92 |
2026 | 880,034 |
After 2026 | 51 |
Total | $ 882,060 |
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 | 77 Months Ended | |||
Sep. 30, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2021 | 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 | $ 125,992 | $ 0 | $ 0 | $ 431,539 | ||
Treasury Stock Acquired, Average Cost Per Share (in dollars per share) | $ 47.81 | |||||
Treasury Stock [Member] | ||||||
Shares Acquired Under Stock Repurchases Program, Shares (in shares) | 350,000 | 0 | 0 | 9,026,706 |
Note 14 - Earnings Per Share (D
Note 14 - Earnings Per Share (Details Textual) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Payment Arrangement, Option [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) | 0 | 0 | 0 |
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, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Net income attributable to Generac Holdings Inc. | $ 142,895 | $ 131,570 | $ 127,036 | $ 148,993 | $ 125,001 | $ 114,970 | $ 66,145 | $ 44,460 | $ 550,494 | $ 350,576 | $ 252,007 | |
Redeemable noncontrolling interest redemption value adjustment | (17,102) | (1,247) | 1,253 | |||||||||
Net income attributable to common shareholders | $ 533,392 | $ 349,329 | $ 253,260 | |||||||||
Weighted average shares, basic (in shares) | 62,686,001 | 62,280,889 | 61,926,986 | |||||||||
Dilutive effect of stock compensation awards (in shares) | [1] | 1,534,603 | 1,456,845 | 938,460 | ||||||||
Dilutive effect of contingently issued shares (in shares) | 32,804 | 0 | 0 | |||||||||
Diluted shares (in shares) | 64,253,408 | 63,737,734 | 62,865,446 | |||||||||
Net income attributable to Generac Holdings Inc. per common share - basic: (in dollars per share) | $ 2.09 | $ 1.98 | $ 2.06 | $ 2.39 | $ 2.02 | $ 1.86 | $ 1.04 | $ 0.69 | $ 8.51 | $ 5.61 | $ 4.09 | |
Net income attributable to Generac Holdings Inc. per common share - diluted: (in dollars per share) | $ 2.04 | $ 1.93 | $ 2.01 | $ 2.33 | $ 1.96 | $ 1.82 | $ 1.02 | $ 0.68 | $ 8.30 | $ 5.48 | $ 4.03 | |
[1] | There were no awards with an anti-dilutive impact for the years ended December 31, 2021, 2020 and 2019. |
Note 15 - Income Taxes (Details
Note 15 - Income Taxes (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Deferred Income Tax Assets, Net, Total | $ 15,740 | $ 1,497 |
Deferred Income Tax Liabilities, Net, Total | 205,964 | 115,769 |
Vauation Allowances and Reserves Adjustments | 2,134 | |
Tax Credit Carryforward State Manufacturing | 28,270 | |
Unrecognized Tax Benefits, Interest on Income Taxes Expense | 127 | 95 |
Unrecognized Tax Benefits, Income Tax Penalties Expense | $ 357 | $ 274 |
Note 15 - Income Taxes - Provis
Note 15 - Income Taxes - Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Current: | |||
Federal | $ 105,236 | $ 62,714 | $ 41,686 |
State | 21,295 | 13,071 | 4,211 |
Foreign | 10,536 | 1,974 | 2,660 |
Current Income Tax Expense (Benefit), Total | 137,067 | 77,759 | 48,557 |
Deferred: | |||
Federal | 10,518 | 20,452 | 19,393 |
State | (3,728) | 1,243 | 1,390 |
Foreign | (7,863) | (1,197) | (1,263) |
Deferred Income Tax Expense (Benefit) Before Adjustment of Valuation Allowance | (1,073) | 20,498 | 19,520 |
Change in valuation allowance | (1,037) | 716 | (778) |
Provision for income taxes | $ 134,957 | $ 98,973 | $ 67,299 |
Note 15 - Income Taxes - Compon
Note 15 - Income Taxes - Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Accrued expenses | $ 37,797 | $ 24,358 |
Deferred revenue | 27,003 | 15,851 |
Inventories | 14,907 | 11,795 |
Stock-based compensation | 10,202 | 8,348 |
Operating loss and credit carryforwards | 68,368 | 31,275 |
Bad debt | 1,253 | 1,633 |
Other deferred tax assets | 12,203 | 8,558 |
Valuation allowance | (7,874) | (5,740) |
Total deferred tax assets | 163,859 | 96,078 |
Goodwill and intangible assets | 328,162 | 171,831 |
Depreciation | 21,340 | 33,716 |
Debt refinancing costs | 2,916 | 3,544 |
Prepaid expenses | 1,664 | 1,259 |
Total deferred tax liabilities | 354,082 | 210,350 |
Net deferred tax liabilities | $ (190,223) | $ (114,272) |
Note 15 - Income Taxes - Unreco
Note 15 - Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Unrecognized tax benefit, beginning of period | $ 7,613 | $ 6,720 |
Increase in unrecognized tax benefit for positions taken in prior period | 272 | 332 |
Increase in unrecognized tax benefit for positions taken in current period | 990 | 750 |
Statute of limitation expirations | (228) | (189) |
Settlements | 0 | 0 |
Unrecognized tax benefit, end of period | $ 8,647 | $ 7,613 |
Note 15 - Income Taxes - Reconc
Note 15 - Income Taxes - Reconciliation of Statutory and Effective Tax Rates (Details) | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
U.S. statutory rate | 21.00% | 21.00% | 21.00% | |
State taxes | 4.30% | 4.30% | 4.30% | |
State tax rate differential | 0.00% | 0.00% | (1.00%) | |
Research and development credits | (1.00%) | (1.10%) | (0.80%) | |
State credits | (1.10%) | (1.50%) | (1.00%) | |
Share-based compensation | [1] | (3.80%) | (1.00%) | (0.60%) |
Nondeductible U.S. compensation | 1.50% | 0.00% | 0.00% | |
Foreign tax deduction | (1.50%) | 0.00% | 0.00% | |
Foreign deferred tax rate change | 1.20% | 0.00% | 0.00% | |
Other | (1.10%) | 0.50% | (0.80%) | |
Effective tax rate | 19.50% | 22.20% | 21.10% | |
[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, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Employer Contribution under Medical and Dental Plan | $ 24,189 | $ 24,617 | $ 18,290 | |
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 | $ 6,725 | $ 5,332 | $ 4,791 | |
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, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | 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) | $ 335.70 | $ 102.32 | $ 52.07 | ||
Proceeds from Stock Options Exercised | $ 38,787 | $ 13,089 | $ 9,395 | ||
Payment, Tax Withholding, Share-based Payment Arrangement | $ 58,903 | $ 14,910 | $ 6,438 | ||
Board of Directors Chairman [Member] | |||||
Deferred Compensation Arrangement with Individual, Shares Issued (in shares) | 4,677 | 15,275 | 22,544 | ||
Deferred Compensation Arrangement with Individual, Shares Granted (in shares) | 3,160 | 10,528 | 16,604 | ||
Deferred Compensation Arrangement with Individual, Compensation Expense | $ 1,579 | $ 1,558 | $ 1,391 | ||
Share-based Payment Arrangement, Option [Member] | |||||
Share-based Payment Arrangement, Expense | $ 6,462 | $ 5,860 | $ 5,597 | ||
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) | 8,608 | 24,070 | 32,211 | ||
Proceeds from Stock Options Exercised | $ 38,787 | $ 13,089 | $ 9,395 | ||
Payment, Tax Withholding, Share-based Payment Arrangement | 31,680 | $ 7,297 | $ 3,360 | ||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total | $ 12,829 | ||||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition (Year) | 2 years 7 months 6 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) | 80,583 | 70,718 | 55,953 | ||
Payment, Tax Withholding, Share-based Payment Arrangement | $ 27,223 | $ 7,613 | $ 3,078 | ||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total | $ 35,104 | ||||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition (Year) | 2 years 2 months 12 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 | $ 17,492 | $ 15,022 | $ 11,097 | ||
Minimum [Member] | |||||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price (in dollars per share) | $ 323.66 | $ 91 | $ 52.07 | ||
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) | $ 438.83 | $ 158.89 | |||
Performance Share Award, Percentage | 200.00% | ||||
Equity Incentive Plan (Plan) [Member] | |||||
Share-based Payment Arrangement, Expense | $ 6,249 | $ 11,681 | $ 15,738 | ||
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 | $ 17,705 | $ 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, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Weighted average grant date fair value (in dollars per share) | $ 129.47 | $ 35.79 | $ 19.33 |
Expected stock price volatility | 37.00% | 32.00% | 33.00% |
Risk free interest rate | 0.45% | 1.56% | 2.52% |
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, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Outstanding, number of options (in shares) | 1,528,690 | 1,592,686 | 1,521,167 | |
Outstanding, weighted average exercise price (in dollars per share) | $ 49.08 | $ 42.04 | $ 37.70 | |
Outstanding, weighted average remaining contractual term (Year) | 5 years 6 months | 6 years 3 months 18 days | 6 years 10 months 24 days | 7 years |
Outstanding, aggregate intrinsic value | $ 386,069 | $ 272,553 | $ 93,242 | $ 19,212 |
Granted, number of options (in shares) | 70,392 | 173,650 | 369,779 | |
Granted, weighted average exercise price (in dollars per share) | $ 335.70 | $ 102.32 | $ 52.07 | |
Exercised, number of options (in shares) | (229,921) | (216,196) | (263,250) | |
Exercised, weighted average exercise price (in dollars per share) | $ 45.95 | $ 39.88 | $ 30.75 | |
Forfeited, number of options (in shares) | (27,030) | (21,450) | (35,010) | |
Forfeited, weighted average exercise price (in dollars per share) | $ 63.27 | $ 50.25 | $ 43.79 | |
Outstanding, number of options (in shares) | 1,342,131 | 1,528,690 | 1,592,686 | 1,521,167 |
Outstanding, weighted average exercise price (in dollars per share) | $ 64.29 | $ 49.08 | $ 42.04 | $ 37.70 |
Exercisable, number of options (in shares) | 896,456 | |||
Exercisable, weighted average exercise price (in dollars per share) | $ 42.04 | |||
Exercisable, weighted average remaining contractual term (Year) | 4 years 4 months 24 days | |||
Exercisable, aggregate intrinsic value | $ 277,794 |
Note 17 - Share Plans - Summa_2
Note 17 - Share Plans - Summary of Restricted Share Awards Activity (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Non-vested (in shares) | 456,194 | 491,637 | 425,996 |
Non-vested (in dollars per share) | $ 68.42 | $ 52.84 | $ 40.50 |
Granted (in shares) | 126,339 | 183,868 | 265,255 |
Granted (in dollars per share) | $ 223.09 | $ 95.14 | $ 62.38 |
Vested (in shares) | (202,327) | (200,390) | (184,628) |
Vested (in dollars per share) | $ 58.99 | $ 45.10 | $ 38.78 |
Forfeited (in shares) | (14,241) | (18,921) | (14,986) |
Forfeited (in dollars per share) | $ 138.64 | $ 56.58 | $ 44.23 |
Non-vested (in shares) | 365,965 | 456,194 | 491,637 |
Non-vested (in dollars per share) | $ 124.25 | $ 68.42 | $ 52.84 |
Note 18 - Commitments and Con_2
Note 18 - Commitments and Contingencies (Details Textual) $ in Millions | 1 Months Ended | ||
Aug. 31, 2021 | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | |
Amount Financed by Dealers | $ 115.9 | $ 55.6 | |
Case No. 2:21-cv- 06777 and Case No. 2:21-cv- 07009 [Member] | |||
Loss Contingency, New Claims Filed, Number | 2 |
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, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Net sales | $ 1,067,071 | $ 942,698 | $ 919,981 | $ 807,434 | $ 761,082 | $ 701,355 | $ 546,848 | $ 475,915 | $ 3,737,184 | $ 2,485,200 | $ 2,204,336 |
Gross profit | 362,539 | 335,994 | 339,735 | 321,814 | 300,202 | 276,149 | 208,983 | 172,320 | 1,360,082 | 957,654 | 797,752 |
Operating income | 175,481 | 173,579 | 182,952 | 189,124 | 171,054 | 155,637 | 89,553 | 62,862 | 721,136 | 479,106 | 372,163 |
Net income attributable to Generac Holdings Inc. | $ 142,895 | $ 131,570 | $ 127,036 | $ 148,993 | $ 125,001 | $ 114,970 | $ 66,145 | $ 44,460 | $ 550,494 | $ 350,576 | $ 252,007 |
Net income attributable to common shareholders per common share - basic: (in dollars per share) | $ 2.09 | $ 1.98 | $ 2.06 | $ 2.39 | $ 2.02 | $ 1.86 | $ 1.04 | $ 0.69 | $ 8.51 | $ 5.61 | $ 4.09 |
Net income attributable to common shareholders per common share - diluted: (in dollars per share) | $ 2.04 | $ 1.93 | $ 2.01 | $ 2.33 | $ 1.96 | $ 1.82 | $ 1.02 | $ 0.68 | $ 8.30 | $ 5.48 | $ 4.03 |
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, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
SEC Schedule, 12-09, Allowance, Credit Loss [Member] | ||||
Beginning | $ 12,001 | $ 6,968 | $ 4,873 | |
Additions Charged to Earnings | 206 | 4,645 | 3,086 | |
Allowance for credit losses | [1] | 0 | 1,147 | 0 |
Charges to Reserve, Net | [2] | (1,640) | (957) | (1,033) |
Reserves Assumed in Acquisition | 1,458 | 198 | 42 | |
Balance at End of Year | 12,025 | 12,001 | 6,968 | |
SEC Schedule, 12-09, Reserve, Inventory [Member] | ||||
Beginning | 27,817 | 24,293 | 23,140 | |
Additions Charged to Earnings | 17,698 | 11,353 | 4,821 | |
Allowance for credit losses | [1] | 0 | 0 | 0 |
Charges to Reserve, Net | [2] | (15,749) | (8,788) | (3,867) |
Reserves Assumed in Acquisition | 3,771 | 959 | 199 | |
Balance at End of Year | 33,537 | 27,817 | 24,293 | |
SEC Schedule, 12-09, Valuation Allowance, Deferred Tax Asset [Member] | ||||
Beginning | 5,740 | 5,024 | 5,802 | |
Additions Charged to Earnings | 1,404 | 716 | 0 | |
Allowance for credit losses | [1] | 0 | 0 | 0 |
Charges to Reserve, Net | [2] | (2,441) | 0 | 0 |
Reserves Assumed in Acquisition | 3,171 | 0 | (778) | |
Balance at End of Year | $ 7,874 | $ 5,740 | $ 5,024 | |
[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. |