Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2014 | 1-May-14 | |
Document and Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'GENERAC HOLDINGS INC. | ' |
Entity Central Index Key | '0001474735 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Well-known Seasoned Issuer | 'Yes | ' |
Entity Voluntary Filers | 'No | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 68,831,374 |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 31-Mar-14 | ' |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (Unaudited) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $173,740 | $150,147 |
Restricted cash | 6,645 | 6,645 |
Accounts receivable, less allowance for doubtful accounts | 182,168 | 164,907 |
Inventories | 292,307 | 300,253 |
Deferred income taxes | 25,482 | 26,869 |
Prepaid expenses and other assets | 6,188 | 5,358 |
Total current assets | 686,530 | 654,179 |
Property and equipment, net | 148,017 | 146,390 |
Customer lists, net | 39,848 | 42,764 |
Patents, net | 60,474 | 62,418 |
Trade names, net | 173,195 | 173,196 |
Goodwill | 607,185 | 608,287 |
Other intangible assets, net | 3,962 | 4,447 |
Deferred income taxes | 73,540 | 85,104 |
Deferred financing costs, net | 19,304 | 20,051 |
Other assets | 514 | 1,369 |
Total assets | 1,812,569 | 1,798,205 |
Current liabilities: | ' | ' |
Short-term borrowings | 7,004 | 9,575 |
Accounts payable | 113,744 | 109,238 |
Accrued wages and employee benefits | 15,006 | 26,564 |
Other accrued liabilities | 85,093 | 92,997 |
Current portion of long-term borrowings and capital lease obligations | 12,543 | 12,471 |
Total current liabilities | 233,390 | 250,845 |
Long-term borrowings and capital lease obligations | 1,172,368 | 1,175,349 |
Other long-term liabilities | 53,767 | 54,940 |
Total liabilities | 1,459,525 | 1,481,134 |
Stockholders' equity: | ' | ' |
Common stock, par value $0.01, 500,000,000 shares authorized, 69,041,410 and 68,767,367 shares issued at March 31, 2014 and December 31, 2013, respectively | 690 | 688 |
Additional paid-in capital | 424,297 | 421,672 |
Treasury stock, at cost | -7,497 | -6,571 |
Excess purchase price over predecessor basis | -202,116 | -202,116 |
Retained earnings | 140,514 | 105,813 |
Accumulated other comprehensive loss | -2,844 | -2,415 |
Total stockholders' equity | 353,044 | 317,071 |
Total liabilities and stockholders' equity | $1,812,569 | $1,798,205 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Stockholders' equity: | ' | ' |
Common stock, par value (in dollars per share) | $0.01 | $0.01 |
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock, shares issued (in shares) | 69,041,410 | 68,767,367 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Comprehensive Income (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Condensed Consolidated Statements of Comprehensive Income (Unaudited) [Abstract] | ' | ' |
Net sales | $342,008 | $399,572 |
Costs of goods sold | 222,494 | 246,110 |
Gross profit | 119,514 | 153,462 |
Operating expenses: | ' | ' |
Selling and service | 27,969 | 31,681 |
Research and development | 7,746 | 6,645 |
General and administrative | 13,148 | 12,426 |
Amortization of intangibles | 5,345 | 6,185 |
Total operating expenses | 54,208 | 56,937 |
Income from operations | 65,306 | 96,525 |
Other (expense) income: | ' | ' |
Interest expense | -11,689 | -15,675 |
Investment income | 39 | 17 |
Loss on extinguishment of debt | 0 | -1,839 |
Other, net | 568 | 396 |
Total other expense, net | -11,082 | -17,101 |
Income before provision for income taxes | 54,224 | 79,424 |
Provision for income taxes | 19,523 | 28,750 |
Net income | 34,701 | 50,674 |
Net income per common share - basic: (in dollars per share) | $0.51 | $0.75 |
Weighted average common shares outstanding - basic: (in shares) | 68,421,800 | 67,864,475 |
Net income per common share - diluted: (in dollars per share) | $0.50 | $0.73 |
Weighted average common shares outstanding - diluted: (in shares) | 70,008,490 | 69,554,941 |
Comprehensive income | $34,272 | $51,676 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Operating activities | ' | ' |
Net income | $34,701 | $50,674 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation | 3,230 | 2,565 |
Amortization of intangible assets | 5,345 | 6,185 |
Amortization of original issue discount | 452 | 616 |
Amortization of deferred financing costs | 751 | 561 |
Amortization of unrealized loss on interest rate swaps | 0 | 1,002 |
Loss on extinguishment of debt | 0 | 1,839 |
Provision for losses on accounts receivable | 67 | 225 |
Deferred income taxes | 12,606 | 20,075 |
Loss on disposal of property and equipment | 62 | 2 |
Share-based compensation expense | 3,322 | 2,931 |
Net changes in operating assets and liabilities: | ' | ' |
Accounts receivable | -17,324 | -34,648 |
Inventories | 7,931 | -33,007 |
Other assets | 369 | 13 |
Accounts payable | 4,459 | 22,601 |
Accrued wages and employee benefits | -11,557 | -3,358 |
Other accrued liabilities | -1,533 | 7,684 |
Excess tax benefits from equity awards | -6,528 | -7,694 |
Net cash provided by operating activities | 36,353 | 38,266 |
Investing activities | ' | ' |
Proceeds from sale of property and equipment | 6 | 0 |
Expenditures for property and equipment | -4,925 | -4,322 |
Net cash used in investing activities | -4,919 | -4,322 |
Financing activities | ' | ' |
Proceeds from short-term borrowings | 4,000 | 0 |
Repayments of short-term borrowings | -6,571 | -18 |
Repayments of long-term borrowings and capital lease obligations | -3,326 | -82,250 |
Payment of debt issuance costs | -4 | 0 |
Cash dividends paid for restricted stock upon vesting | -334 | -2,649 |
Taxes paid related to the net share settlement of equity awards | -8,152 | -10,417 |
Excess tax benefits from equity awards | 6,528 | 7,694 |
Net cash used in financing activities | -7,859 | -87,640 |
Effect of exchange rate changes on cash and cash equivalents | 18 | 10 |
Net increase (decrease) in cash and cash equivalents | 23,593 | -53,686 |
Cash and cash equivalents at beginning of period | 150,147 | 108,023 |
Cash and cash equivalents at end of period | $173,740 | $54,337 |
Basis_of_Presentation
Basis of Presentation | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Basis of Presentation [Abstract] | ' | ||||||||||||||||
Basis of Presentation | ' | ||||||||||||||||
1. Basis of Presentation | |||||||||||||||||
Description of Business | |||||||||||||||||
Generac Holdings Inc. (the Company) owns all of the common stock of Generac Acquisition Corp. (GAC), which in turn, owns all of the common stock of Generac Power Systems, Inc. (the Borrower). The Company is a leading designer and manufacturer of a wide range of power generation equipment and other engine powered products serving the residential, light-commercial, industrial and construction markets. | |||||||||||||||||
The condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany amounts and transactions have been eliminated in consolidation. Certain prior period amounts contained in Note 6, “Product Warranty Obligations” have been reclassified to conform to the current period’s presentation. | |||||||||||||||||
The condensed consolidated balance sheet as of March 31, 2014, the condensed consolidated statements of comprehensive income for the three months ended March 31, 2014 and 2013, and the condensed consolidated statements of cash flows for the three months ended March 31, 2014 and 2013 have been prepared by the Company and have not been audited. In the opinion of management, all adjustments, consisting of only normal recurring adjustments necessary for the fair presentation of the financial position, results of operation and cash flows, have been made. The results of operations for any interim period are not necessarily indicative of the results to be expected for the full year. | |||||||||||||||||
Expenses are charged to operations in the year incurred. However, for interim reporting purposes certain expenses are charged to operations based on a proportionate share of annual amounts rather than as they are actually incurred. | |||||||||||||||||
The preparation of the consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | |||||||||||||||||
Certain information and footnote disclosure normally included in consolidated financial statements prepared in accordance with U.S. generally accepted accounting principles have been condensed or omitted. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2013. | |||||||||||||||||
Accumulated Other Comprehensive Loss | |||||||||||||||||
The components of accumulated other comprehensive loss, net of tax, at March 31, 2014 and December 31, 2013 are as follows: | |||||||||||||||||
March 31, | December 31, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
Foreign currency translation adjustments | $ | 1,275 | $ | 1,204 | |||||||||||||
Pension liability, net of tax of $886 | (4,393 | ) | (4,393 | ) | |||||||||||||
Unrealized gain on cash flow hedges, net of tax of $178 and $462 | 274 | 774 | |||||||||||||||
Accumulated other comprehensive loss | $ | (2,844 | ) | $ | (2,415 | ) | |||||||||||
The following presents a tabular disclosure about changes in accumulated other comprehensive loss during the three months ended March 31, 2014 and 2013, net of tax: | |||||||||||||||||
Foreign Currency Translation Adjustments | Defined Benefit Pension Plan | Unrealized gain (loss) on cash flow hedges | Total | ||||||||||||||
Beginning Balance – January 1, 2014 | $ | 1,204 | $ | (4,393 | ) | $ | 774 | $ | (2,415 | ) | |||||||
Other comprehensive income before reclassifications | 71 | - | (500 | ) | (429 | ) | |||||||||||
Amounts reclassified from accumulated other comprehensive loss | - | - | - | - | |||||||||||||
Net current-period other comprehensive income | 71 | - | (500 | ) | (429 | ) | |||||||||||
Ending Balance – March 31, 2014 | $ | 1,275 | $ | (4,393 | ) | $ | 274 | $ | (2,844 | ) | |||||||
Foreign Currency Translation Adjustments | Defined Benefit Pension Plan | Unrealized gain (loss) on cash flow hedges | Total | ||||||||||||||
Beginning Balance – January 1, 2013 | $ | (34 | ) | $ | (12,081 | ) | $ | (2,381 | ) | $ | (14,496 | ) | |||||
Other comprehensive income before reclassifications | - | - | - | - | |||||||||||||
Amounts reclassified from accumulated other comprehensive loss | - | - | 1,002 | 1,002 | |||||||||||||
Net current-period other comprehensive income | - | - | 1,002 | 1,002 | |||||||||||||
Ending Balance – March 31, 2013 | $ | (34 | ) | $ | (12,081 | ) | $ | (1,379 | ) | $ | (13,494 | ) | |||||
The following presents a tabular disclosure about reclassification adjustments out of accumulated other comprehensive loss during the three months ended March 31, 2014 and 2013: | |||||||||||||||||
Amounts reclassified from other accumulated comprehensive loss for the three months ended March 31, | |||||||||||||||||
Affected line item in the statement where net income is presented | |||||||||||||||||
Amortization of unrealized loss on interest rate swaps | 2014 | 2013 | |||||||||||||||
Gross | - | $ | (1,048 | ) | Interest expense | ||||||||||||
Tax benefit | - | 46 | |||||||||||||||
Net of tax | - | $ | (1,002 | ) |
Derivative_Instruments_and_Hed
Derivative Instruments and Hedging Activities | 3 Months Ended | |||||||||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities [Abstract] | ' | |||||||||||||||||||||||||
Derivative Instruments and Hedging Activities | ' | |||||||||||||||||||||||||
2. Derivative Instruments and Hedging Activities | ||||||||||||||||||||||||||
The Company records all derivatives in accordance with ASC 815, Derivatives and Hedging, which requires all derivative instruments be reported on the consolidated balance sheets at fair value and establishes criteria for designation and effectiveness of hedging relationships. The Company is exposed to market risk such as changes in commodity prices, foreign currencies, and interest rates. The Company does not hold or issue derivative financial instruments for trading purposes. | ||||||||||||||||||||||||||
Commodities | ||||||||||||||||||||||||||
The primary objectives of the commodity risk management activities are to understand and mitigate the impact of potential price fluctuations on the Company’s financial results and its economic well-being. While the Company’s risk management objectives and strategies will be driven from an economic perspective, it attempts, where possible and practical, to ensure that the hedging strategies it engages in can be treated as “hedges” from an accounting perspective or otherwise result in accounting treatment where the earnings effect of the hedging instrument provides substantial offset (in the same period) to the earnings effect of the hedged item. Generally, these risk management transactions will involve the use of commodity derivatives to protect against exposure resulting from significant price fluctuations. | ||||||||||||||||||||||||||
The Company primarily utilizes commodity contracts with maturities of less than 12 months. The impact of such contracts is intended to offset the effect of price fluctuations on actual inventory purchases. Outstanding commodity forward contracts in place to hedge the Company’s projected commodity purchases were as follows: | ||||||||||||||||||||||||||
As of March 31, 2014: | ||||||||||||||||||||||||||
Commodity | Trade Date | Effective Date | Notional Amount | Termination Date | ||||||||||||||||||||||
Copper | 6/21/13 | 10/1/13 | $2,169 | 6/30/14 | ||||||||||||||||||||||
Copper | 1/31/14 | 2/1/14 | $3,879 | 12/31/14 | ||||||||||||||||||||||
Copper | 3/11/14 | 4/1/14 | $3,014 | 12/31/14 | ||||||||||||||||||||||
As of December 31, 2013: | ||||||||||||||||||||||||||
Commodity | Trade Date | Effective Date | Notional Amount | Termination Date | ||||||||||||||||||||||
Copper | 6/21/13 | 10/1/13 | $2,169 | 6/30/14 | ||||||||||||||||||||||
As of March 31, 2013: | ||||||||||||||||||||||||||
Commodity | Trade Date | Effective Date | Notional Amount | Termination Date | ||||||||||||||||||||||
Copper | 10/29/12 | 1/1/13 | $3,472 | 9/30/13 | ||||||||||||||||||||||
Copper | 2/26/13 | 3/1/13 | $2,677 | 12/31/13 | ||||||||||||||||||||||
Copper | 3/1/13 | 3/1/13 | $2,636 | 12/31/13 | ||||||||||||||||||||||
Because these contracts do not qualify for hedge accounting, gains and losses are recorded in cost of goods sold in the Company’s consolidated statements of comprehensive income. Total losses recognized for the three months ended March 31, 2014 and March 31, 2013 were $(326) and $(292), respectively. | ||||||||||||||||||||||||||
Foreign Currencies | ||||||||||||||||||||||||||
The Company is exposed to foreign currency exchange risk as a result of transactions denominated in other currencies. The Company periodically utilizes foreign currency forward purchase and sales contracts to manage the volatility associated with foreign currency purchases in the normal course of business. Contracts typically have maturities of 12 months or less. There were no foreign currency hedge contracts outstanding as of March, 31, 2013. As of March 31, 2014 and December 31, 2013, the following foreign currency contracts were outstanding: | ||||||||||||||||||||||||||
As of March 31, 2014: | ||||||||||||||||||||||||||
Currency Denomination | Notional Amount | |||||||||||||||||||||||||
United States Dollar (USD) | 450 | |||||||||||||||||||||||||
British Pound Sterling (GBP) | 3,000 | |||||||||||||||||||||||||
As of December 31, 2013: | ||||||||||||||||||||||||||
Currency Denomination | Notional Amount | |||||||||||||||||||||||||
United States Dollar (USD) | 650 | |||||||||||||||||||||||||
British Pound Sterling (GBP) | 4,000 | |||||||||||||||||||||||||
Total gains/losses recognized for the three months ended March 31, 2014 were not material. | ||||||||||||||||||||||||||
Interest Rate Swaps | ||||||||||||||||||||||||||
As of May 30, 2012, the date of a previous credit agreement refinancing, the Company had four interest rate swap agreements outstanding. These agreements were all entered into during 2010 and 2011. The first was entered into on January 21, 2010. The effective date of this swap was July 1, 2010 with a notional amount of $200,000, a fixed LIBOR rate of 1.73% and an expiration date of July 1, 2012. The second was entered into on June 29, 2010. The effective date of that swap was October 1, 2010 with a notional amount of $100,000, a fixed LIBOR rate of 1.025% and an expiration date of October 1, 2012. The remaining two interest rate swap agreements were entered into on April 1, 2011. The effective date of the first swap was July 1, 2012 with a notional amount of $200,000, a fixed LIBOR rate of 1.905% and an expiration date of July 1, 2013. The effective date of the second swap was October 1, 2012 with a notional amount of $100,000, a fixed LIBOR rate of 2.22% and an expiration date of October 1, 2013. Due to the incorporation of a new interest rate floor provision in the then new credit agreement, which constituted a change in critical terms, the Company concluded that as of May 30, 2012, the then outstanding swaps would no longer be highly effective in achieving offsetting changes in cash flows during the periods the hedges were designated. As a result, the Company was required to de-designate the four outstanding hedges described above as of May 30, 2012. Beginning May 31 2012, the effective portion of the swaps prior to the change (i.e. amounts previously recorded in Accumulated Other Comprehensive Loss) were amortized into interest expense over the period of the originally designated hedged transactions which had various termination dates through October 2013. Future changes in fair value of these swaps were immediately recognized in the consolidated statements of comprehensive income as interest expense. | ||||||||||||||||||||||||||
On October 23, 2013, the Company entered into two interest rate swap agreements and formally documented all relationships between interest rate hedging instruments and hedged items, as well as its risk-management objectives and strategies for undertaking various hedge transactions. These interest rate swap agreements qualify as cash flow hedges. For derivatives that are designated and qualify as a cash flow hedge, the effective portion of the gain or loss on the derivative is reported as a component of accumulated other comprehensive income (loss). The cash flows of the swaps are recognized as adjustments to interest expense each period. The ineffective portion of the derivatives’ change in fair value, if any, is immediately recognized in earnings. The Company assesses on an ongoing basis whether derivatives used in hedging transactions are highly effective in offsetting changes in cash flows of hedged items. The effective dates of the swaps are July 1, 2014 with a notional amount of $100,000 each and a fixed LIBOR rate of 1.737% and 1.742% with expiration dates of July 1, 2018. | ||||||||||||||||||||||||||
The following table presents the fair value of the Company’s derivatives: | ||||||||||||||||||||||||||
March 31, | December 31, | |||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||
Commodity contracts | $ | (255 | ) | $ | 69 | |||||||||||||||||||||
Foreign currency contracts | (30 | ) | 56 | |||||||||||||||||||||||
Interest rate swaps | 452 | 1,236 | ||||||||||||||||||||||||
Net derivatives asset | $ | 167 | $ | 1,361 | ||||||||||||||||||||||
The fair value of the interest rate swaps is included in other assets in the condensed consolidated balance sheets as of March 31, 2014 and December 31, 2013, respectively. The fair value of the commodity contracts is included in other current liabilities and other assets in the condensed consolidated balance sheets as of March 31, 2014 and December 31, 2013, respectively. The fair value of the derivative contracts in a liability position considers the Company’s credit risk. Excluding the impact of credit risk, the fair value of the derivative contracts as of March 31, 2014 and December 31, 2013 is an asset of $176 and $1,385, respectively, which represents the amount the Company would need to pay to exit the agreements on those dates. | ||||||||||||||||||||||||||
The following presents the impact of interest rate swaps, commodity contracts and foreign currency contracts on the condensed consolidated statements of comprehensive income for the three months ended March 31, 2014 and 2013: | ||||||||||||||||||||||||||
Amount of (loss) recognized in Accumulated Other Comprehensive Loss for the three months ended March 31, | Location of gain (loss) recognized in net income on ineffective portion of hedges | Amount of (loss) reclassified from Accumulated Other Comprehensive Loss into net income for the three months ended March 31, | Amount of gain (loss) recognized in net income on hedges (ineffective portion) for the three months ended March 31, | |||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Derivatives designated as hedging instruments | ||||||||||||||||||||||||||
Interest rate swaps | $ | (500 | ) | $ | - | Interest expense | $ | - | $ | - | $ | - | $ | - | ||||||||||||
Derivatives not designated as hedging instruments | ||||||||||||||||||||||||||
Interest rate swaps (1) | $ | - | $ | - | Interest expense | $ | - | $ | (1,002 | ) | $ | - | $ | 1,206 | ||||||||||||
Commodity contracts | $ | - | $ | - | Cost of goods sold | $ | - | $ | - | $ | (368 | ) | $ | (292 | ) | |||||||||||
(1) Amounts recorded for the three months ended March 31, 2013 relate to interest rate swap agreements outstanding as of May 30, 2012, the date the hedging relationships for these agreements were terminated |
Fair_Value_Measurements
Fair Value Measurements | 3 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Fair Value Measurements [Abstract] | ' | ||||||||||||
Fair Value Measurements | ' | ||||||||||||
3. Fair Value Measurements | |||||||||||||
ASC 820-10, Fair Value Measurements and Disclosures, among other things, defines fair value, establishes a consistent framework for measuring fair value, and expands disclosure for each major asset and liability category measured at fair value on either a recurring basis or nonrecurring basis. ASC 820-10 clarifies that fair value is an exit price, representing the amount that would be received in the sale of an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, the pronouncement establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: (Level 1) observable inputs such as quoted prices in active markets; (Level 2) inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and (Level 3) unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions. | |||||||||||||
Assets and liabilities measured at fair value are based on the market approach, which uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. | |||||||||||||
The Company believes the carrying amount of its financial instruments (cash and cash equivalents, restricted cash, accounts receivable, accounts payable, accrued liabilities and short-term borrowings), excluding long-term borrowings, approximates the fair value of these instruments based upon their short-term nature. The fair value of long-term borrowings, including amounts classified as current, which have an aggregate carrying value of $1,182,429, was approximately $1,182,429 (Level 2) at March 31, 2014, as calculated based on independent valuations whose inputs and significant value drivers are observable. | |||||||||||||
Assets (liabilities) measured at fair value on a recurring basis are as follows: | |||||||||||||
Fair Value Measurement Using | |||||||||||||
Quoted Prices in Active Markets for Identical Contracts (Level 1) | Significant | ||||||||||||
Total | Other Observable Inputs | ||||||||||||
31-Mar-14 | (Level 2) | ||||||||||||
Interest rate swaps | $ | 452 | $ | – | $ | 452 | |||||||
Commodity contracts | $ | (255 | ) | $ | – | $ | (255 | ) | |||||
Foreign currency contracts | $ | (30 | ) | $ | – | $ | (30 | ) | |||||
Fair Value Measurement Using | |||||||||||||
Quoted Prices in Active Markets for Identical Contracts (Level 1) | Significant | ||||||||||||
Total | Other Observable Inputs | ||||||||||||
31-Dec-13 | (Level 2) | ||||||||||||
Interest rate swaps | $ | 1,236 | $ | – | $ | 1,236 | |||||||
Commodity contracts | $ | 69 | $ | – | $ | 69 | |||||||
Foreign currency contracts | $ | 56 | $ | – | $ | 56 | |||||||
The valuation techniques used to measure the fair value of derivative contracts classified as level 2, all of which have counterparties with high credit ratings, were based on quoted market prices or model driven valuations using significant inputs derived from or corroborated by observable market data. The fair value of derivative contracts above considers the Company’s credit risk in accordance with ASC 820-10. |
Segment_Reporting
Segment Reporting | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Segment Reporting [Abstract] | ' | ||||||||
Segment Reporting | ' | ||||||||
4. Segment Reporting | |||||||||
The Company operates in and reports as a single operating segment, which is the design and manufacture of a wide range of engine powered products. Net sales are predominantly generated through the sale of generators and other engine powered products through various distribution channels. The Company manages and evaluates its operations as one segment primarily due to similarities in the nature of the products, production processes and methods of distribution. The Company’s sales in the United States represent approximately 85% and 91% of total sales for the three months ended March 31, 2014 and 2013, respectively. Approximately 90% of the Company’s identifiable long-lived assets are located in the United States at both March 31, 2014 and December 31, 2013. | |||||||||
The Company's product offerings consist primarily of power products with a range of power output geared for varying end customer uses. Residential power products and commercial & industrial power products are each a similar class of products based on similar power output and end customer usage. The breakout of net sales between residential, commercial & industrial, and other products is as follows: | |||||||||
Three Months Ended March 31, | |||||||||
2014 | 2013 | ||||||||
Residential power products | $ | 163,969 | $ | 255,244 | |||||
Commercial & industrial power products | 157,370 | 127,080 | |||||||
Other | 20,669 | 17,248 | |||||||
Total | $ | 342,008 | $ | 399,572 |
Balance_Sheet_Details
Balance Sheet Details | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Balance Sheet Details [Abstract] | ' | ||||||||
Balance Sheet Details | ' | ||||||||
5. Balance Sheet Details | |||||||||
Inventories consist of the following: | |||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
Raw material | $ | 178,069 | $ | 183,787 | |||||
Work-in-process | 7,863 | 9,620 | |||||||
Finished goods | 112,883 | 113,404 | |||||||
Reserves for excess and obsolescence | (6,508 | ) | (6,558 | ) | |||||
Total | $ | 292,307 | $ | 300,253 | |||||
Property and equipment consists of the following: | |||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
Land and improvements | $ | 7,452 | $ | 7,416 | |||||
Buildings and improvements | 96,597 | 96,161 | |||||||
Machinery and equipment | 57,898 | 54,847 | |||||||
Dies and tools | 17,541 | 17,071 | |||||||
Vehicles | 1,984 | 1,979 | |||||||
Office equipment | 18,446 | 17,304 | |||||||
Leasehold improvements | 2,257 | 2,229 | |||||||
Construction in progress | 9,239 | 9,724 | |||||||
Gross property and equipment | 211,414 | 206,731 | |||||||
Accumulated depreciation | (63,397 | ) | (60,341 | ) | |||||
Total | $ | 148,017 | $ | 146,390 | |||||
Other accrued liabilities consist of the following: | |||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
Accrued commissions | $ | 11,706 | $ | 10,254 | |||||
Accrued interest | 10,524 | 10,907 | |||||||
Product warranty obligations – short term | 24,253 | 26,080 | |||||||
Deferred revenue related to extended warranty – short term | 4,865 | 3,325 | |||||||
Accrued dividends for unvested restricted stock | 2,138 | 2,472 | |||||||
Accrued volume rebates | 6,548 | 9,418 | |||||||
Accrued customer prepayments | 3,279 | 3,393 | |||||||
Other accrued selling expenses | 7,413 | 8,659 | |||||||
Earn-out obligations | 12,518 | 12,518 | |||||||
Other accrued liabilities | 1,849 | 5,971 | |||||||
Total | $ | 85,093 | $ | 92,997 | |||||
Other long-term liabilities consist of the following: | |||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
Accrued pension costs | $ | 10,034 | $ | 10,385 | |||||
Product warranty obligations – long term | 7,654 | 7,654 | |||||||
Deferred revenue related to extended warranty – long term | 19,767 | 19,767 | |||||||
Deferred tax liabilities | 14,360 | 14,966 | |||||||
Other long-term liabilities | 1,952 | 2,168 | |||||||
Total | $ | 53,767 | $ | 54,940 |
Product_Warranty_Obligations
Product Warranty Obligations | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Product Warranty Obligations [Abstract] | ' | ||||||||
Product Warranty Obligations | ' | ||||||||
6. Product Warranty Obligations | |||||||||
The Company records a liability for product warranty obligations at the time of sale to a customer based upon historical warranty experience. The Company also records a liability for specific warranty matters when they become known and are reasonably estimable. The Company also sells extended warranty coverage for certain products. The sales of extended warranties are recorded as deferred revenue, and we recognize the revenue from sales of extended warranties over the life of the contracts. The Company’s product warranty obligations, including deferred revenue related to extended warranty coverage, are included in other accrued liabilities and other long-term liabilities in the consolidated balance sheets. | |||||||||
The following is a tabular reconciliation of the product warranty liability, excluding the deferred revenue related to extended warranty coverage: | |||||||||
For the three months ended March 31, | |||||||||
2014 | 2013 | ||||||||
Balance at beginning of period | $ | 33,734 | $ | 36,112 | |||||
Payments | (6,723 | ) | (5,694 | ) | |||||
Provision for warranties issued | 6,039 | 10,989 | |||||||
Changes in estimates for pre-existing warranties | (1,143 | ) | (1,200 | ) | |||||
Balance at end of period | $ | 31,907 | $ | 40,207 | |||||
The following is a tabular reconciliation of the deferred revenue related to extended warranty coverage: | |||||||||
For the three months ended March 31, | |||||||||
2014 | 2013 | ||||||||
Balance at beginning of period | $ | 23,092 | $ | 13,473 | |||||
Deferred revenue on extended warranty contracts sold | 2,219 | 2,138 | |||||||
Amortization of deferred revenue on extended warranty contracts | (679 | ) | (569 | ) | |||||
Balance at end of period | $ | 24,632 | $ | 15,042 | |||||
Product warranty obligations and warranty related deferred revenues are included in the balance sheets as follows: | |||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
Product warranty liability | |||||||||
Current portion - other accrued liabilities | $ | 24,253 | $ | 26,080 | |||||
Long-term portion - other long-term liabilities | 7,654 | 7,654 | |||||||
Total | $ | 31,907 | $ | 33,734 | |||||
Deferred revenue related to extended warranty | |||||||||
Current portion - other accrued liabilities | $ | 4,865 | $ | 3,325 | |||||
Long-term portion - other long-term liabilities | 19,767 | 19,767 | |||||||
Total | $ | 24,632 | $ | 23,092 |
Credit_Agreements
Credit Agreements | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Credit Agreements [Abstract] | ' | ||||||||
Credit Agreements | ' | ||||||||
7. Credit Agreements | |||||||||
Short-term borrowings are included in the balance sheets as follows: | |||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
ABL facility | $ | - | $ | - | |||||
Other lines of credit, as described below | 7,004 | 9,575 | |||||||
Total | $ | 7,004 | $ | 9,575 | |||||
Long-term borrowings are included in the balance sheets as follows: | |||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
Term loan | $ | 1,194,000 | $ | 1,197,000 | |||||
Original issue discount | (12,283 | ) | (12,735 | ) | |||||
Capital lease obligation | 2,482 | 2,529 | |||||||
Other | 712 | 1,026 | |||||||
Total | 1,184,911 | 1,187,820 | |||||||
Less current portion of debt | 12,356 | 12,286 | |||||||
Less current portion of capital lease obligation | 187 | 185 | |||||||
Total | $ | 1,172,368 | $ | 1,175,349 | |||||
On May 31, 2013, the Borrower amended and restated its then existing credit agreement by entering into a new term loan credit agreement (“New Term Loan Credit Agreement”) with certain commercial banks and other lenders. The New Term Loan Credit Agreement provides for a $1,200,000 term loan B credit facility (the “New Term Loan”) and includes a $300,000 uncommitted incremental term loan facility. The New Term Loan Credit Agreement matures on May 31, 2020. Proceeds from the New Term Loan were used to repay amounts outstanding under the Company’s previous credit agreement and to fund a special cash dividend of $5.00 per share on the Company’s common stock. Remaining funds from the New Term Loans were used for general corporate purposes and to pay related financing fees and expenses. | |||||||||
The New Term Loan is guaranteed by all of the Borrower’s wholly-owned domestic restricted subsidiaries, GAC and the Company, and is secured by associated collateral agreements which pledge a first priority lien on virtually all of the Borrower’s assets, including fixed assets and intangibles, and the assets of the guarantors (other than the Company), other than all cash, trade accounts receivable, inventory, and other current assets and proceeds thereof, which will be secured by a second priority lien. | |||||||||
The New Term Loan amortizes in equal installments of 0.25% of the original principal amount of the New Term Loan payable on the first day of April, July, October and January commencing on October 1, 2013 until the final maturity date on May 31, 2020. It initially bears interest at rates based upon either a base rate plus an applicable margin of 1.75% or adjusted LIBOR rate plus an applicable margin of 2.75%, subject to a LIBOR floor of 0.75%. Beginning in the second quarter of 2014, the applicable margin related to base rate loans can be reduced to 1.50% and the applicable margin related to LIBOR rate loans can be reduced to 2.50%, in each case, if the Borrower’s net debt leverage ratio falls below 3.00 to 1.00. | |||||||||
The New Term Loan Credit Agreement contains restrictions on the Borrower’s ability to pay distributions and dividends. Payments can be made by the Borrower to the Company or other parent companies for certain expenses such as operating expenses in the ordinary course, fees and expenses related to any debt or equity offering and to pay franchise or similar taxes. Dividends can be used to repurchase equity interests, subject to limitations in certain circumstances. Additionally, the New Term Loan Credit Agreement restricts the aggregate amount of dividends and distributions that can be paid and, in certain circumstances, requires pro forma compliance with certain fixed charge coverage ratios or gross leverage ratios, as applicable in order to pay certain dividends and distributions. The New Term Loan Credit Agreement also contains other affirmative and negative covenants that, among other things, limit the incurrence of additional indebtedness, liens on property, sale and leaseback transactions, investments, loans and advances, mergers or consolidations, asset sales, acquisitions, transactions with affiliates, prepayments of certain other indebtedness and modifications of our organizational documents. The New Term Loan Credit Agreement does not contain any financial maintenance covenants. | |||||||||
The New Term Loan Credit Agreement contains customary events of default, including, among others, nonpayment of principal, interest or other amounts, failure to perform covenants, inaccuracy of representations or warranties in any material respect, cross-defaults with other material indebtedness, certain undischarged judgments, the occurrence of certain ERISA or bankruptcy or insolvency events or the occurrence of a change in control (as defined in the New Term Loan Credit Agreement). A bankruptcy or insolvency event of default will cause the obligations under the New Term Loan Credit Agreement to automatically become immediately due and payable. | |||||||||
Concurrent with the closing of the New Term Loan Credit Agreement, on May 31, 2013, the Borrower amended its then existing ABL credit agreement (the “New ABL Credit Agreement”). The amendment provides for a one year extension of the maturity date in respect of the $150,000 senior secured ABL revolving credit facility provided under the previous ABL credit agreement (the “ABL Facility”). The extended maturity date of the ABL Facility is May 31, 2018. | |||||||||
Borrowings under the ABL Facility are guaranteed by all of the Borrower’s wholly-owned domestic restricted subsidiaries and GAC, and are secured by associated collateral agreements which pledge a first priority lien on all cash, trade accounts receivable, inventory, and other current assets and proceeds thereof, and a second priority lien on all other assets, including fixed assets and intangibles of the Borrower, certain domestic subsidiaries of the Borrower and the guarantors (other than the Company). Borrowings bear interest at rates based upon either a base rate plus an applicable margin of 1.00% or adjusted LIBOR rate plus an applicable margin of 2.00%, in each case, subject to adjustments based upon average availability under the ABL Facility. The New ABL Credit Agreement requires the Borrower to maintain a minimum consolidated fixed charge coverage ratio of 1.0x, tested on a quarterly basis, when Availability plus the amount of Qualified Cash (up to $5,000) (as defined in the New ABL Credit Agreement) under the ABL Facility is less than the greater of (i) 10.0% of the Line Cap (as defined in the New ABL Credit Agreement) and (ii) $10,000. The New ABL Credit Agreement also contains covenants and events of default substantially similar to those in the New Term Loan Credit Agreement, as described above. As of March 31, 2014, no amounts were outstanding under the ABL Facility. As of March 31, 2014, the Company had $173,740 of unrestricted cash and cash equivalents and $148,500 of availability under the ABL Facility, net of outstanding letters of credit. | |||||||||
As of March 31, 2014 and December 31, 2013, short-term borrowings consisted primarily of borrowings by our foreign subsidiaries on local lines of credit, which totaled $7,004 and $9,575, respectively. |
Earnings_Per_Share
Earnings Per Share | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Earnings Per Share [Abstract] | ' | ||||||||
Earnings Per Share | ' | ||||||||
8. Earnings Per Share | |||||||||
Basic earnings per share is calculated by dividing net income by the weighted average number of common shares outstanding during the period, exclusive of restricted shares. Except where the result would be anti-dilutive, dilutive earnings per share is calculated by assuming the vesting of unvested restricted stock and the exercise of stock options, as well as their related income tax benefits. The following table reconciles the numerator and the denominator used to calculate basic and diluted earnings per share: | |||||||||
Three months ended March 31, | |||||||||
2014 | 2013 | ||||||||
Numerator- net income | $ | 34,701 | $ | 50,674 | |||||
Denominator- weighted average shares | |||||||||
Basic | 68,421,800 | 67,864,475 | |||||||
Dilutive effect of stock compensation awards (1) | 1,586,690 | 1,690,466 | |||||||
Diluted | 70,008,490 | 69,554,941 | |||||||
Net income per share | |||||||||
Basic | $ | 0.51 | $ | 0.75 | |||||
Diluted | $ | 0.5 | $ | 0.73 | |||||
(1) Excludes approximately 22,000 stock options and 400 shares of restricted stock for the three month period ended March 31, 2014 as the impact of such awards was anti-dilutive. Excludes approximately 250,000 stock options and 60,000 shares of restricted stock for the three month period ended March 31, 2013 as the impact of such awards was anti-dilutive. |
Income_Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2014 | |
Income Taxes [Abstract] | ' |
Income Taxes | ' |
9. Income Taxes | |
The effective income tax rates for the three months ended March 31, 2014 and 2013 were 36.0% and 36.2%, respectively. |
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2014 | |
Commitments and Contingencies [Abstract] | ' |
Commitments and Contingencies | ' |
10 Commitments and Contingencies | |
The Company has an arrangement with a finance company to provide floor plan financing for selected dealers. The Company receives payment from the finance company after shipment of product to the dealer. The Company participates in the cost of dealer financing up to certain limits and has agreed to repurchase products repossessed by the finance company, but does not indemnify the finance company for any credit losses they incur. The amount financed by dealers which remained outstanding under this arrangement at March 31, 2014 and December 31, 2013 was approximately $27,000 and $24,300 respectively. | |
In the normal course of business, the Company is named as a defendant in various lawsuits in which claims are asserted against the Company. In the opinion of management, the liabilities, if any, which may result from such lawsuits are not expected to have a material adverse effect on the financial position, results of operations, or cash flows of the Company. |
Subsequent_Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2014 | |
Subsequent Events [Abstract] | ' |
Subsequent Events | ' |
11 Subsequent Events | |
On April 30, 2014, the Company prepaid $12,000 of principal on its existing New Term Loan with available cash on hand. |
Basis_of_Presentation_Tables
Basis of Presentation (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Basis of Presentation [Abstract] | ' | ||||||||||||||||
Components of accumulated other comprehensive loss, net of tax | ' | ||||||||||||||||
The components of accumulated other comprehensive loss, net of tax, at March 31, 2014 and December 31, 2013 are as follows: | |||||||||||||||||
March 31, | December 31, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
Foreign currency translation adjustments | $ | 1,275 | $ | 1,204 | |||||||||||||
Pension liability, net of tax of $886 | (4,393 | ) | (4,393 | ) | |||||||||||||
Unrealized gain on cash flow hedges, net of tax of $178 and $462 | 274 | 774 | |||||||||||||||
Accumulated other comprehensive loss | $ | (2,844 | ) | $ | (2,415 | ) | |||||||||||
Changes in accumulated other comprehensive loss | ' | ||||||||||||||||
The following presents a tabular disclosure about changes in accumulated other comprehensive loss during the three months ended March 31, 2014 and 2013, net of tax: | |||||||||||||||||
Foreign Currency Translation Adjustments | Defined Benefit Pension Plan | Unrealized gain (loss) on cash flow hedges | Total | ||||||||||||||
Beginning Balance – January 1, 2014 | $ | 1,204 | $ | (4,393 | ) | $ | 774 | $ | (2,415 | ) | |||||||
Other comprehensive income before reclassifications | 71 | - | (500 | ) | (429 | ) | |||||||||||
Amounts reclassified from accumulated other comprehensive loss | - | - | - | - | |||||||||||||
Net current-period other comprehensive income | 71 | - | (500 | ) | (429 | ) | |||||||||||
Ending Balance – March 31, 2014 | $ | 1,275 | $ | (4,393 | ) | $ | 274 | $ | (2,844 | ) | |||||||
Foreign Currency Translation Adjustments | Defined Benefit Pension Plan | Unrealized gain (loss) on cash flow hedges | Total | ||||||||||||||
Beginning Balance – January 1, 2013 | $ | (34 | ) | $ | (12,081 | ) | $ | (2,381 | ) | $ | (14,496 | ) | |||||
Other comprehensive income before reclassifications | - | - | - | - | |||||||||||||
Amounts reclassified from accumulated other comprehensive loss | - | - | 1,002 | 1,002 | |||||||||||||
Net current-period other comprehensive income | - | - | 1,002 | 1,002 | |||||||||||||
Ending Balance – March 31, 2013 | $ | (34 | ) | $ | (12,081 | ) | $ | (1,379 | ) | $ | (13,494 | ) | |||||
Reclassification adjustments out of accumulated other comprehensive loss | ' | ||||||||||||||||
The following presents a tabular disclosure about reclassification adjustments out of accumulated other comprehensive loss during the three months ended March 31, 2014 and 2013: | |||||||||||||||||
Amounts reclassified from other accumulated comprehensive loss for the three months ended March 31, | |||||||||||||||||
Affected line item in the statement where net income is presented | |||||||||||||||||
Amortization of unrealized loss on interest rate swaps | 2014 | 2013 | |||||||||||||||
Gross | - | $ | (1,048 | ) | Interest expense | ||||||||||||
Tax benefit | - | 46 | |||||||||||||||
Net of tax | - | $ | (1,002 | ) |
Derivative_Instruments_and_Hed1
Derivative Instruments and Hedging Activities (Tables) | 3 Months Ended | |||||||||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities [Abstract] | ' | |||||||||||||||||||||||||
Outstanding commodity forward contracts | ' | |||||||||||||||||||||||||
The Company primarily utilizes commodity contracts with maturities of less than 12 months. The impact of such contracts is intended to offset the effect of price fluctuations on actual inventory purchases. Outstanding commodity forward contracts in place to hedge the Company’s projected commodity purchases were as follows: | ||||||||||||||||||||||||||
As of March 31, 2014: | ||||||||||||||||||||||||||
Commodity | Trade Date | Effective Date | Notional Amount | Termination Date | ||||||||||||||||||||||
Copper | 6/21/13 | 10/1/13 | $2,169 | 6/30/14 | ||||||||||||||||||||||
Copper | 1/31/14 | 2/1/14 | $3,879 | 12/31/14 | ||||||||||||||||||||||
Copper | 3/11/14 | 4/1/14 | $3,014 | 12/31/14 | ||||||||||||||||||||||
As of December 31, 2013: | ||||||||||||||||||||||||||
Commodity | Trade Date | Effective Date | Notional Amount | Termination Date | ||||||||||||||||||||||
Copper | 6/21/13 | 10/1/13 | $2,169 | 6/30/14 | ||||||||||||||||||||||
As of March 31, 2013: | ||||||||||||||||||||||||||
Commodity | Trade Date | Effective Date | Notional Amount | Termination Date | ||||||||||||||||||||||
Copper | 10/29/12 | 1/1/13 | $3,472 | 9/30/13 | ||||||||||||||||||||||
Copper | 2/26/13 | 3/1/13 | $2,677 | 12/31/13 | ||||||||||||||||||||||
Copper | 3/1/13 | 3/1/13 | $2,636 | 12/31/13 | ||||||||||||||||||||||
Foreign currency contracts | ' | |||||||||||||||||||||||||
As of March 31, 2014 and December 31, 2013, the following foreign currency contracts were outstanding: | ||||||||||||||||||||||||||
As of March 31, 2014: | ||||||||||||||||||||||||||
Currency Denomination | Notional Amount | |||||||||||||||||||||||||
United States Dollar (USD) | 450 | |||||||||||||||||||||||||
British Pound Sterling (GBP) | 3,000 | |||||||||||||||||||||||||
As of December 31, 2013: | ||||||||||||||||||||||||||
Currency Denomination | Notional Amount | |||||||||||||||||||||||||
United States Dollar (USD) | 650 | |||||||||||||||||||||||||
British Pound Sterling (GBP) | 4,000 | |||||||||||||||||||||||||
Fair value of derivatives | ' | |||||||||||||||||||||||||
The following table presents the fair value of the Company’s derivatives: | ||||||||||||||||||||||||||
March 31, | December 31, | |||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||
Commodity contracts | $ | (255 | ) | $ | 69 | |||||||||||||||||||||
Foreign currency contracts | (30 | ) | 56 | |||||||||||||||||||||||
Interest rate swaps | 452 | 1,236 | ||||||||||||||||||||||||
Net derivatives asset | $ | 167 | $ | 1,361 | ||||||||||||||||||||||
Impact of interest rate swaps and commodity contracts | ' | |||||||||||||||||||||||||
The following presents the impact of interest rate swaps, commodity contracts and foreign currency contracts on the condensed consolidated statements of comprehensive income for the three months ended March 31, 2014 and 2013: | ||||||||||||||||||||||||||
Amount of (loss) recognized in Accumulated Other Comprehensive Loss for the three months ended March 31, | Location of gain (loss) recognized in net income on ineffective portion of hedges | Amount of (loss) reclassified from Accumulated Other Comprehensive Loss into net income for the three months ended March 31, | Amount of gain (loss) recognized in net income on hedges (ineffective portion) for the three months ended March 31, | |||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Derivatives designated as hedging instruments | ||||||||||||||||||||||||||
Interest rate swaps | $ | (500 | ) | $ | - | Interest expense | $ | - | $ | - | $ | - | $ | - | ||||||||||||
Derivatives not designated as hedging instruments | ||||||||||||||||||||||||||
Interest rate swaps (1) | $ | - | $ | - | Interest expense | $ | - | $ | (1,002 | ) | $ | - | $ | 1,206 | ||||||||||||
Commodity contracts | $ | - | $ | - | Cost of goods sold | $ | - | $ | - | $ | (368 | ) | $ | (292 | ) | |||||||||||
(1) Amounts recorded for the three months ended March 31, 2013 relate to interest rate swap agreements outstanding as of May 30, 2012, the date the hedging relationships for these agreements were terminated |
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 3 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Fair Value Measurements [Abstract] | ' | ||||||||||||
Assets (liabilities) measured at fair value on a recurring basis | ' | ||||||||||||
Assets (liabilities) measured at fair value on a recurring basis are as follows: | |||||||||||||
Fair Value Measurement Using | |||||||||||||
Quoted Prices in Active Markets for Identical Contracts (Level 1) | Significant | ||||||||||||
Total | Other Observable Inputs | ||||||||||||
31-Mar-14 | (Level 2) | ||||||||||||
Interest rate swaps | $ | 452 | $ | – | $ | 452 | |||||||
Commodity contracts | $ | (255 | ) | $ | – | $ | (255 | ) | |||||
Foreign currency contracts | $ | (30 | ) | $ | – | $ | (30 | ) | |||||
Fair Value Measurement Using | |||||||||||||
Quoted Prices in Active Markets for Identical Contracts (Level 1) | Significant | ||||||||||||
Total | Other Observable Inputs | ||||||||||||
31-Dec-13 | (Level 2) | ||||||||||||
Interest rate swaps | $ | 1,236 | $ | – | $ | 1,236 | |||||||
Commodity contracts | $ | 69 | $ | – | $ | 69 | |||||||
Foreign currency contracts | $ | 56 | $ | – | $ | 56 |
Segment_Reporting_Tables
Segment Reporting (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Segment Reporting [Abstract] | ' | ||||||||
Net sales between residential, industrial/commercial and other products | ' | ||||||||
The Company's product offerings consist primarily of power products with a range of power output geared for varying end customer uses. Residential power products and commercial & industrial power products are each a similar class of products based on similar power output and end customer usage. The breakout of net sales between residential, commercial & industrial, and other products is as follows: | |||||||||
Three Months Ended March 31, | |||||||||
2014 | 2013 | ||||||||
Residential power products | $ | 163,969 | $ | 255,244 | |||||
Commercial & industrial power products | 157,370 | 127,080 | |||||||
Other | 20,669 | 17,248 | |||||||
Total | $ | 342,008 | $ | 399,572 |
Balance_Sheet_Details_Tables
Balance Sheet Details (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Balance Sheet Details [Abstract] | ' | ||||||||
Inventories | ' | ||||||||
Inventories consist of the following: | |||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
Raw material | $ | 178,069 | $ | 183,787 | |||||
Work-in-process | 7,863 | 9,620 | |||||||
Finished goods | 112,883 | 113,404 | |||||||
Reserves for excess and obsolescence | (6,508 | ) | (6,558 | ) | |||||
Total | $ | 292,307 | $ | 300,253 | |||||
Property and equipment | ' | ||||||||
Property and equipment consists of the following: | |||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
Land and improvements | $ | 7,452 | $ | 7,416 | |||||
Buildings and improvements | 96,597 | 96,161 | |||||||
Machinery and equipment | 57,898 | 54,847 | |||||||
Dies and tools | 17,541 | 17,071 | |||||||
Vehicles | 1,984 | 1,979 | |||||||
Office equipment | 18,446 | 17,304 | |||||||
Leasehold improvements | 2,257 | 2,229 | |||||||
Construction in progress | 9,239 | 9,724 | |||||||
Gross property and equipment | 211,414 | 206,731 | |||||||
Accumulated depreciation | (63,397 | ) | (60,341 | ) | |||||
Total | $ | 148,017 | $ | 146,390 | |||||
Other accrued liabilities | ' | ||||||||
Other accrued liabilities consist of the following: | |||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
Accrued commissions | $ | 11,706 | $ | 10,254 | |||||
Accrued interest | 10,524 | 10,907 | |||||||
Product warranty obligations – short term | 24,253 | 26,080 | |||||||
Deferred revenue related to extended warranty – short term | 4,865 | 3,325 | |||||||
Accrued dividends for unvested restricted stock | 2,138 | 2,472 | |||||||
Accrued volume rebates | 6,548 | 9,418 | |||||||
Accrued customer prepayments | 3,279 | 3,393 | |||||||
Other accrued selling expenses | 7,413 | 8,659 | |||||||
Earn-out obligations | 12,518 | 12,518 | |||||||
Other accrued liabilities | 1,849 | 5,971 | |||||||
Total | $ | 85,093 | $ | 92,997 | |||||
Other long term liabilities | ' | ||||||||
Other long-term liabilities consist of the following: | |||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
Accrued pension costs | $ | 10,034 | $ | 10,385 | |||||
Product warranty obligations – long term | 7,654 | 7,654 | |||||||
Deferred revenue related to extended warranty – long term | 19,767 | 19,767 | |||||||
Deferred tax liabilities | 14,360 | 14,966 | |||||||
Other long-term liabilities | 1,952 | 2,168 | |||||||
Total | $ | 53,767 | $ | 54,940 |
Product_Warranty_Obligations_T
Product Warranty Obligations (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Product Warranty Obligations [Abstract] | ' | ||||||||
Changes in product warranty obligation | ' | ||||||||
The following is a tabular reconciliation of the product warranty liability, excluding the deferred revenue related to extended warranty coverage: | |||||||||
For the three months ended March 31, | |||||||||
2014 | 2013 | ||||||||
Balance at beginning of period | $ | 33,734 | $ | 36,112 | |||||
Payments | (6,723 | ) | (5,694 | ) | |||||
Provision for warranties issued | 6,039 | 10,989 | |||||||
Changes in estimates for pre-existing warranties | (1,143 | ) | (1,200 | ) | |||||
Balance at end of period | $ | 31,907 | $ | 40,207 | |||||
The following is a tabular reconciliation of the deferred revenue related to extended warranty coverage: | |||||||||
For the three months ended March 31, | |||||||||
2014 | 2013 | ||||||||
Balance at beginning of period | $ | 23,092 | $ | 13,473 | |||||
Deferred revenue on extended warranty contracts sold | 2,219 | 2,138 | |||||||
Amortization of deferred revenue on extended warranty contracts | (679 | ) | (569 | ) | |||||
Balance at end of period | $ | 24,632 | $ | 15,042 | |||||
Product warranty obligations included in consolidated balance sheets | ' | ||||||||
Product warranty obligations and warranty related deferred revenues are included in the balance sheets as follows: | |||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
Product warranty liability | |||||||||
Current portion - other accrued liabilities | $ | 24,253 | $ | 26,080 | |||||
Long-term portion - other long-term liabilities | 7,654 | 7,654 | |||||||
Total | $ | 31,907 | $ | 33,734 | |||||
Deferred revenue related to extended warranty | |||||||||
Current portion - other accrued liabilities | $ | 4,865 | $ | 3,325 | |||||
Long-term portion - other long-term liabilities | 19,767 | 19,767 | |||||||
Total | $ | 24,632 | $ | 23,092 |
Credit_Agreements_Tables
Credit Agreements (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Credit Agreements [Abstract] | ' | ||||||||
Short-term borrowings | ' | ||||||||
Short-term borrowings are included in the balance sheets as follows: | |||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
ABL facility | $ | - | $ | - | |||||
Other lines of credit, as described below | 7,004 | 9,575 | |||||||
Total | $ | 7,004 | $ | 9,575 | |||||
Long-term borrowings | ' | ||||||||
Long-term borrowings are included in the balance sheets as follows: | |||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
Term loan | $ | 1,194,000 | $ | 1,197,000 | |||||
Original issue discount | (12,283 | ) | (12,735 | ) | |||||
Capital lease obligation | 2,482 | 2,529 | |||||||
Other | 712 | 1,026 | |||||||
Total | 1,184,911 | 1,187,820 | |||||||
Less current portion of debt | 12,356 | 12,286 | |||||||
Less current portion of capital lease obligation | 187 | 185 | |||||||
Total | $ | 1,172,368 | $ | 1,175,349 |
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Earnings Per Share [Abstract] | ' | ||||||||
Computation of basic and diluted net income per share | ' | ||||||||
The following table reconciles the numerator and the denominator used to calculate basic and diluted earnings per share: | |||||||||
Three months ended March 31, | |||||||||
2014 | 2013 | ||||||||
Numerator- net income | $ | 34,701 | $ | 50,674 | |||||
Denominator- weighted average shares | |||||||||
Basic | 68,421,800 | 67,864,475 | |||||||
Dilutive effect of stock compensation awards (1) | 1,586,690 | 1,690,466 | |||||||
Diluted | 70,008,490 | 69,554,941 | |||||||
Net income per share | |||||||||
Basic | $ | 0.51 | $ | 0.75 | |||||
Diluted | $ | 0.5 | $ | 0.73 | |||||
(1) Excludes approximately 22,000 stock options and 400 shares of restricted stock for the three month period ended March 31, 2014 as the impact of such awards was anti-dilutive. Excludes approximately 250,000 stock options and 60,000 shares of restricted stock for the three month period ended March 31, 2013 as the impact of such awards was anti-dilutive. |
Basis_of_Presentation_Details
Basis of Presentation (Details) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 |
Components of accumulated other comprehensive loss [Abstract] | ' | ' | ' |
Foreign currency translation adjustment | $1,275 | ' | $1,204 |
Pension liability, net of tax of $886 | -4,393 | ' | -4,393 |
Unrealized gain on cash flow hedges, net of tax of $178 and $462 | 274 | ' | 774 |
Accumulated other comprehensive loss | -2,844 | -13,494 | ' |
Pension liability, tax effect | 886 | ' | 886 |
Unrealized losses on cash flow hedges, tax effect | 178 | ' | 462 |
Accumulated Other Comprehensive Income Loss [Line Items] | ' | ' | ' |
Accumulated other comprehensive loss, beginning balance | -2,415 | -14,496 | ' |
Other comprehensive income before reclassifications | -429 | 0 | ' |
Amounts reclassified from accumulated other comprehensive loss | 0 | 1,002 | ' |
Net current-period other comprehensive income | -429 | 1,002 | ' |
Accumulated other comprehensive loss, ending balance | -2,844 | -13,494 | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Net of tax | 0 | 1,002 | ' |
Interest expense [Member] | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Gross | 0 | -1,048 | ' |
Tax benefit | 0 | 46 | ' |
Net of tax | 0 | -1,002 | ' |
Foreign Currency Translation Adjustments [Member] | ' | ' | ' |
Components of accumulated other comprehensive loss [Abstract] | ' | ' | ' |
Accumulated other comprehensive loss | 1,275 | -34 | ' |
Accumulated Other Comprehensive Income Loss [Line Items] | ' | ' | ' |
Accumulated other comprehensive loss, beginning balance | 1,204 | -34 | ' |
Other comprehensive income before reclassifications | 71 | 0 | ' |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 | ' |
Net current-period other comprehensive income | 71 | 0 | ' |
Accumulated other comprehensive loss, ending balance | 1,275 | -34 | ' |
Defined Benefit Pension Plan [Member] | ' | ' | ' |
Components of accumulated other comprehensive loss [Abstract] | ' | ' | ' |
Accumulated other comprehensive loss | -4,393 | -12,081 | ' |
Accumulated Other Comprehensive Income Loss [Line Items] | ' | ' | ' |
Accumulated other comprehensive loss, beginning balance | -4,393 | -12,081 | ' |
Other comprehensive income before reclassifications | 0 | 0 | ' |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 | ' |
Net current-period other comprehensive income | 0 | 0 | ' |
Accumulated other comprehensive loss, ending balance | -4,393 | -12,081 | ' |
Unrealized gain (loss) on cash flow hedges [Member] | ' | ' | ' |
Components of accumulated other comprehensive loss [Abstract] | ' | ' | ' |
Accumulated other comprehensive loss | 274 | -1,379 | ' |
Accumulated Other Comprehensive Income Loss [Line Items] | ' | ' | ' |
Accumulated other comprehensive loss, beginning balance | 774 | -2,381 | ' |
Other comprehensive income before reclassifications | -500 | 0 | ' |
Amounts reclassified from accumulated other comprehensive loss | 0 | 1,002 | ' |
Net current-period other comprehensive income | -500 | 1,002 | ' |
Accumulated other comprehensive loss, ending balance | $274 | ($1,379) | ' |
Derivative_Instruments_and_Hed2
Derivative Instruments and Hedging Activities (Details) | 3 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 3 Months Ended | ||||||||||||||||||||||||||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2013 | Dec. 31, 2011 | Dec. 31, 2010 | Mar. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Mar. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 |
USD ($) | USD ($) | USD ($) | Interest rate swaps [Member] | Commodity contracts [Member] | Commodity forward contract one [Member] | Commodity forward contract two [Member] | Commodity Forward Contract Three [Member] | Commodity forward contract Four [Member] | Commodity forward contract Five [Member] | Commodity Forward Contract Six [Member] | Commodity Forward Contract Seven [Member] | Interest rate swap one [Member] | Interest rate swap one [Member] | Interest rate swap one [Member] | Interest rate swap two [Member] | Interest rate swap two [Member] | Interest rate swap two [Member] | Foreign Currency Contract [Member] | Foreign Currency Contract [Member] | Foreign Currency Contract [Member] | Foreign Currency Contract [Member] | Foreign Currency Contract [Member] | Derivatives designated as hedging instruments [Member] | Derivatives designated as hedging instruments [Member] | Derivatives not designated as hedging instruments [Member] | Derivatives not designated as hedging instruments [Member] | Derivatives not designated as hedging instruments [Member] | Derivatives not designated as hedging instruments [Member] | Derivatives not designated as hedging instruments [Member] | Derivatives not designated as hedging instruments [Member] | |
Contract | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | GBP (£) | USD ($) | GBP (£) | DerivativeContract | Interest rate swaps [Member] | Interest rate swaps [Member] | USD ($) | USD ($) | Commodity contracts [Member] | Commodity contracts [Member] | Foreign Currency Contract [Member] | Foreign Currency Contract [Member] | |||||
DerivativeContract | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | |||||||||||||||||||||||||
Derivative [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maturity period of contracts, maximum (in months) | ' | ' | ' | ' | '12 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '12 months | '12 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of outstanding contracts | ' | ' | ' | 4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' |
Derivative, notional amount | ' | ' | ' | ' | ' | $3,472 | $2,169 | $2,169 | $3,879 | $3,014 | $2,677 | $2,636 | $100,000 | $200,000 | $200,000 | $100,000 | $100,000 | $100,000 | $450 | £ 3,000 | $650 | £ 4,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of new contracts entered | ' | ' | ' | 4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total gains or losses recognized | -326 | -292 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Derivative, fixed rate (in hundredths) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.74% | 1.91% | 1.73% | 1.74% | 2.22% | 1.03% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net derivatives liability | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 452 | 1,236 | 167 | 1,361 | -255 | 69 | -30 | 56 |
Fair value of derivative contracts excluding impact of credit risk | 176 | ' | 1,385 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding commodity forward contracts [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Trade Date | ' | ' | ' | ' | ' | 29-Oct-12 | 21-Jun-13 | 21-Jun-13 | 31-Jan-14 | 11-Mar-14 | 26-Feb-13 | 1-Mar-13 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Effective Date | ' | ' | ' | ' | ' | 1-Jan-13 | 1-Oct-13 | 1-Oct-13 | 1-Feb-14 | 1-Apr-14 | 1-Mar-13 | 1-Mar-13 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Notional Amount | ' | ' | ' | ' | ' | $3,472 | $2,169 | $2,169 | $3,879 | $3,014 | $2,677 | $2,636 | $100,000 | $200,000 | $200,000 | $100,000 | $100,000 | $100,000 | $450 | £ 3,000 | $650 | £ 4,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Termination Date | ' | ' | ' | ' | ' | 30-Sep-13 | 30-Jun-14 | 30-Jun-14 | 31-Dec-14 | 31-Dec-14 | 31-Dec-13 | 31-Dec-13 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Derivative_Instruments_and_Hed3
Derivative Instruments and Hedging Activities, Impact on condensed Consolidated Statements of Comprehensive Income (Details) (USD $) | 3 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | ||
Interest expense [Member] | Interest rate swaps [Member] | Derivatives designated as hedging instruments [Member] | ' | ' | ||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ||
Amount of gain (loss) recognized in Accumulated Other Comprehensive Loss | ($500) | $0 | ||
Amount of loss reclassified from Accumulated Other Comprehensive Loss into net income | 0 | 0 | ||
Amount of gain (loss) recognized in net income on hedges (ineffective portion) | 0 | 0 | ||
Interest expense [Member] | Interest rate swaps [Member] | Derivatives not designated as hedging instruments [Member] | ' | ' | ||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ||
Amount of gain (loss) recognized in Accumulated Other Comprehensive Loss | 0 | [1] | 0 | [1] |
Amount of loss reclassified from Accumulated Other Comprehensive Loss into net income | 0 | [1] | -1,002 | [1] |
Amount of gain (loss) recognized in net income on hedges (ineffective portion) | 0 | [1] | 1,206 | [1] |
Cost of goods Sold [Member] | Commodity contracts [Member] | Derivatives not designated as hedging instruments [Member] | ' | ' | ||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ||
Amount of gain (loss) recognized in Accumulated Other Comprehensive Loss | 0 | 0 | ||
Amount of loss reclassified from Accumulated Other Comprehensive Loss into net income | 0 | 0 | ||
Amount of gain (loss) recognized in net income on hedges (ineffective portion) | ($368) | ($292) | ||
[1] | Amounts recorded for the three months ended March 31, 2013 relate to interest rate swap agreements outstanding as of May 30, 2012, the date the hedging relationships for these agreements were terminated |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Significant Other Observable Inputs (Level 2) [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value of long-term debt | $1,182,429 | ' |
Aggregate carrying value of long-term debt | 1,182,429 | ' |
Interest rate swaps [Member] | Fair value measurements on recurring basis [Member] | ' | ' |
Assets (liabilities) measured at fair value on a recurring basis [Abstract] | ' | ' |
Fair value of derivatives | 452 | 1,236 |
Interest rate swaps [Member] | Fair value measurements on recurring basis [Member] | Quoted Prices in Active Markets for Identical Contracts (Level 1) [Member] | ' | ' |
Assets (liabilities) measured at fair value on a recurring basis [Abstract] | ' | ' |
Fair value of derivatives | 0 | 0 |
Interest rate swaps [Member] | Fair value measurements on recurring basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | ' | ' |
Assets (liabilities) measured at fair value on a recurring basis [Abstract] | ' | ' |
Fair value of derivatives | 452 | 1,236 |
Commodity contracts [Member] | Fair value measurements on recurring basis [Member] | ' | ' |
Assets (liabilities) measured at fair value on a recurring basis [Abstract] | ' | ' |
Fair value of derivatives | -255 | 69 |
Commodity contracts [Member] | Fair value measurements on recurring basis [Member] | Quoted Prices in Active Markets for Identical Contracts (Level 1) [Member] | ' | ' |
Assets (liabilities) measured at fair value on a recurring basis [Abstract] | ' | ' |
Fair value of derivatives | 0 | 0 |
Commodity contracts [Member] | Fair value measurements on recurring basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | ' | ' |
Assets (liabilities) measured at fair value on a recurring basis [Abstract] | ' | ' |
Fair value of derivatives | -255 | 69 |
Foreign Currency Contract [Member] | Fair value measurements on recurring basis [Member] | ' | ' |
Assets (liabilities) measured at fair value on a recurring basis [Abstract] | ' | ' |
Fair value of derivatives | -30 | 56 |
Foreign Currency Contract [Member] | Fair value measurements on recurring basis [Member] | Quoted Prices in Active Markets for Identical Contracts (Level 1) [Member] | ' | ' |
Assets (liabilities) measured at fair value on a recurring basis [Abstract] | ' | ' |
Fair value of derivatives | 0 | 0 |
Foreign Currency Contract [Member] | Fair value measurements on recurring basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | ' | ' |
Assets (liabilities) measured at fair value on a recurring basis [Abstract] | ' | ' |
Fair value of derivatives | ($30) | $56 |
Segment_Reporting_Details
Segment Reporting (Details) (USD $) | 3 Months Ended | 12 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 |
Segment | |||
Segment Reporting [Abstract] | ' | ' | ' |
Number of operating segments | 1 | ' | ' |
Sales in the United States representing percentage of total sales (in hundredths) | 85.00% | 91.00% | ' |
Identifiable long-lived assets | 90.00% | ' | 90.00% |
Revenue from External Customer [Line Items] | ' | ' | ' |
Net sales | $342,008 | $399,572 | ' |
Residential power products [Member] | ' | ' | ' |
Revenue from External Customer [Line Items] | ' | ' | ' |
Net sales | 163,969 | 255,244 | ' |
Industrial and commercial power products [Member] | ' | ' | ' |
Revenue from External Customer [Line Items] | ' | ' | ' |
Net sales | 157,370 | 127,080 | ' |
Other [Member] | ' | ' | ' |
Revenue from External Customer [Line Items] | ' | ' | ' |
Net sales | $20,669 | $17,248 | ' |
Balance_Sheet_Details_Details
Balance Sheet Details (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Inventories [Abstract] | ' | ' |
Raw materials | $178,069 | $183,787 |
Work-in-process | 7,863 | 9,620 |
Finished goods | 112,883 | 113,404 |
Reserves for excess and obsolescence | -6,508 | -6,558 |
Total | 292,307 | 300,253 |
Property, Plant and Equipment [Line Items] | ' | ' |
Gross property and equipment | 211,414 | 206,731 |
Accumulated depreciation | -63,397 | -60,341 |
Total | 148,017 | 146,390 |
Other accrued liabilities [Abstract] | ' | ' |
Accrued commissions | 11,706 | 10,254 |
Accrued interest | 10,524 | 10,907 |
Product warranty obligations - short term | 24,253 | 26,080 |
Deferred revenue related to extended warranty - short term | 4,865 | 3,325 |
Accrued dividends for unvested restricted stock | 2,138 | 2,472 |
Accrued volume rebates | 6,548 | 9,418 |
Accrued customer prepayments | 3,279 | 3,393 |
Other accrued selling expenses | 7,413 | 8,659 |
Earn-out obligations | 12,518 | 12,518 |
Other accrued liabilities | 1,849 | 5,971 |
Total | 85,093 | 92,997 |
Other long-term liabilities [Abstract] | ' | ' |
Accrued pension costs | 10,034 | 10,385 |
Product warranty obligations - long term | 7,654 | 7,654 |
Deferred revenue related to extended warranty - long term | 19,767 | 19,767 |
Deferred tax liabilities | 14,360 | 14,966 |
Other long-term liabilities | 1,952 | 2,168 |
Total | 53,767 | 54,940 |
Land and improvements [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Gross property and equipment | 7,452 | 7,416 |
Buildings and improvements [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Gross property and equipment | 96,597 | 96,161 |
Machinery and Equipment [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Gross property and equipment | 57,898 | 54,847 |
Dies and tools [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Gross property and equipment | 17,541 | 17,071 |
Vehicles [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Gross property and equipment | 1,984 | 1,979 |
Office equipment [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Gross property and equipment | 18,446 | 17,304 |
Leasehold improvements [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Gross property and equipment | 2,257 | 2,229 |
Construction in progress [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Gross property and equipment | $9,239 | $9,724 |
Product_Warranty_Obligations_D
Product Warranty Obligations (Details) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 |
Changes in product warranty obligations [Roll Forward] | ' | ' | ' |
Balance at beginning of period | $33,734 | $36,112 | ' |
Payments | -6,723 | -5,694 | ' |
Provision for warranties issued | 6,039 | 10,989 | ' |
Charged to operations | -1,143 | -1,200 | ' |
Balance at end of period | 31,907 | 40,207 | ' |
Deferred revenue related to extended warranty coverage [Roll Forward] | ' | ' | ' |
Balance at beginning of year | 23,092 | 13,473 | ' |
Deferred revenue on extended warranty contracts sold | 2,219 | 2,138 | ' |
Amortization of deferred revenue on extended warranty contracts | -679 | -569 | ' |
Balance at end of year | 24,632 | 15,042 | ' |
Product warranty obligations included in consolidated balance sheets [Abstract] | ' | ' | ' |
Current portion - other accrued liabilities | 24,253 | ' | 26,080 |
Long-term portion - other long-term liabilities | 7,654 | ' | 7,654 |
Total | 31,907 | ' | 33,734 |
Other accrued liabilities | 24,253 | ' | 26,080 |
Other long-term liabilities | 7,654 | ' | 7,654 |
Balance at end of period | 31,907 | 40,207 | ' |
Deferred revenue related to extended warranty [Abstract] | ' | ' | ' |
Current portion - other accrued liabilities | 4,865 | ' | 3,325 |
Long-term portion - other long-term liabilities | 19,767 | ' | 19,767 |
Total | 24,632 | 15,042 | ' |
Product warranty obligations included in consolidated balance sheets [Abstract] | ' | ' | ' |
Current portion - other accrued liabilities | 24,253 | ' | 26,080 |
Long-term portion - other long-term liabilities | 7,654 | ' | 7,654 |
Total | 31,907 | ' | 33,734 |
Other accrued liabilities | 24,253 | ' | 26,080 |
Other long-term liabilities | 7,654 | ' | 7,654 |
Balance at end of period | $31,907 | $40,207 | ' |
Credit_Agreements_Details
Credit Agreements (Details) (USD $) | 1 Months Ended | 3 Months Ended | 1 Months Ended | 5 Months Ended | |||||||||||||||
In Thousands, except Per Share data, unless otherwise specified | 31-May-13 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | 31-May-13 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | 31-May-13 | 30-May-12 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 |
Term Loan [Member] | Term Loan [Member] | Term Loan [Member] | Term Loan [Member] | Term Loan [Member] | Term Loan [Member] | ABL revolving credit facility [Member] | ABL revolving credit facility [Member] | ABL revolving credit facility [Member] | ABL revolving credit facility [Member] | ABL Revolving Credit Facility [Member] | ABL Revolving Credit Facility [Member] | Other lines of credit, as described below [Member] | Other lines of credit, as described below [Member] | ||||||
Base rate [Member] | Adjusted LIBOR rate [Member] | LIBOR Floor Rate [Member] | Base rate [Member] | Adjusted LIBOR rate [Member] | |||||||||||||||
Short-term borrowings [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Short-term borrowings | ' | $7,004 | $9,575 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0 | $0 | $7,004 | $9,575 |
Long-term debt [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Discount on debt | ' | -12,283 | -12,735 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Capital Lease Obligations | ' | 2,482 | 2,529 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other Borrowings | ' | 712 | 1,026 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term debt and capital lease obligation, gross | ' | 1,184,911 | 1,187,820 | ' | ' | ' | 1,194,000 | 1,197,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Less current portion of debt | ' | 12,356 | 12,286 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Less current portion of capital lease obligation | ' | 187 | 185 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total | ' | 1,172,368 | 1,175,349 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum borrowing capacity | ' | ' | ' | ' | ' | 1,200,000 | ' | ' | ' | ' | ' | ' | 150,000 | ' | ' | ' | ' | ' | ' |
Uncommitted incremental term loan facility | ' | ' | ' | ' | ' | 300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maturity date of debt | ' | ' | ' | ' | ' | 31-May-20 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash dividend (in dollars per share) | $5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Covenant description | ' | 'The New ABL Credit Agreement requires the Borrower to maintain a minimum consolidated fixed charge coverage ratio of 1.0x, tested on a quarterly basis, when Availability plus the amount of Qualified Cash (up to $5,000) (as defined in the New ABL Credit Agreement) under the ABL Facility is less than the greater of (i)B 10.0% of the Line Cap (as defined in the New ABL Credit Agreement) and (ii)B $10,000. The New ABL Credit Agreement also contains covenants and events of default substantially similar to those in the New Term Loan Credit Agreement, as described above. As of March 31, 2014, no amounts were outstanding under the ABL Facility. | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of term loan amortization (in hundredths) | ' | 0.25% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basis spread on variable rate (in hundredths) | ' | ' | ' | ' | ' | ' | ' | ' | 1.75% | 2.75% | 0.75% | ' | ' | 1.00% | 2.00% | ' | ' | ' | ' |
Basis spread on variable rate in second quarter of 2014 if net debt leverage ratio falls below 3.00 to 1.00 (in hundredths) | ' | ' | ' | ' | ' | ' | ' | ' | 1.50% | 2.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fixed charge coverage ratio in multiple | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1.0x | ' | ' | ' | ' | ' | ' | ' |
Qualified Cash | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,000 | ' | ' | ' | ' | ' | ' | ' |
Percentage of aggregate commitments (in hundredths) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10.00% | ' | ' | ' | ' | ' | ' | ' |
Amount availability under agreements as per covenants | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,000 | ' | ' | ' | ' | ' | ' | ' |
Cash and cash equivalents | ' | 173,740 | 150,147 | 54,337 | 108,023 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of credit facility amount available | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $148,500 | ' | ' | ' | ' | ' | ' | ' |
Earnings_Per_Share_Details
Earnings Per Share (Details) (USD $) | 3 Months Ended | |||
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | ||
Computation of basic and diluted net income per share [Abstract] | ' | ' | ||
Numerator- net income | $34,701 | $50,674 | ||
Denominator- weighted average shares | ' | ' | ||
Basic (in shares) | 68,421,800 | 67,864,475 | ||
Dilutive effect of stock compensation awards (in shares) | 1,586,690 | [1] | 1,690,466 | [1] |
Diluted (in shares) | 70,008,490 | 69,554,941 | ||
Net income per share | ' | ' | ||
Basic (in dollars per share) | $0.51 | $0.75 | ||
Diluted (in dollars per share) | $0.50 | $0.73 | ||
Stock Options [Member] | ' | ' | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 22,000 | 25,000 | ||
Restricted Stock [Member] | ' | ' | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 400 | 60,000 | ||
[1] | Excludes approximately 22,000 stock options and 400 shares of restricted stock for the three month period ended March 31, 2014 as the impact of such awards was anti-dilutive. Excludes approximately 250,000 stock options and 60,000 shares of restricted stock for the three month period ended March 31, 2013 as the impact of such awards was anti-dilutive. |
Income_Taxes_Details
Income Taxes (Details) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Income Taxes [Abstract] | ' | ' |
Effective income tax rates (in hundredths) | 36.00% | 36.20% |
Commitments_and_Contingencies_
Commitments and Contingencies (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Commitments and Contingencies [Abstract] | ' | ' |
Amount financed by dealers | $27,000 | $24,300 |
Subsequent_Events_Details
Subsequent Events (Details) (Subsequent Event [Member], USD $) | Apr. 30, 2014 |
In Thousands, unless otherwise specified | |
Subsequent Event [Member] | ' |
Subsequent Event [Line Items] | ' |
Prepaid new term loan | $12,000 |