Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2013 |
Accounting Policies [Abstract] | ' |
Consolidation, Policy [Policy Text Block] | ' |
a. Principles of Consolidation |
The Consolidated Financial Statements include the accounts of the Company and all subsidiaries over which the Company exercises control. The Company’s share of earnings or losses of nonconsolidated affiliates are included in the consolidated operating results using the equity method of accounting when the Company is able to exercise significant influence over the operating and financial decisions of the affiliates. All intercompany transactions and balances have been eliminated upon consolidation. |
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Cash and Cash Equivalents, Policy [Policy Text Block] | ' |
b. Cash and Cash Equivalents |
All highly liquid investments with an original maturity of three months or less are considered to be cash equivalents. Cash equivalents are stated at cost, which approximates fair value because of the short maturity of these instruments. |
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Trade and Other Accounts Receivable, Policy [Policy Text Block] | ' |
c. Allowance for Doubtful Accounts |
The Company maintains an allowance for doubtful accounts receivable, which represents its estimate of losses inherent in trade receivables. The Company provides an allowance for specific customer accounts where collection is doubtful based on historical collection and write-off experience. The Company will also take into consideration unique factors and provide an allowance for specific accounts, if necessary. Bad debt expense is not material for any period presented. |
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Inventory, Policy [Policy Text Block] | ' |
d. Inventories |
Inventories are stated at the lower of cost or market. Cost is determined by the first-in, first-out (“FIFO”) method. Maintenance, repair, and non-productive inventory, which are considered consumables, are expensed when acquired and included in cost of sales. Inventories consist of the following (in thousands): |
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| | 31-Dec-13 | | 31-Dec-12 | | | | | | | | | | | | |
Raw materials | | $ | 36,139 | | | $ | 32,781 | | | | | | | | | | | | | |
Work in process | | | 19,650 | | | | 22,735 | | | | | | | | | | | | | |
Finished goods | | | 25,489 | | | | 25,820 | | | | | | | | | | | | | |
Total inventory | | $ | 81,278 | | | $ | 81,336 | | | | | | | | | | | | | |
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Tooling [Policy Text Block] | ' |
e. Tooling |
Tooling represents costs incurred by the Company in the development of new tooling used in the manufacture of the Company’s products. All pre-production tooling costs incurred for tools that the Company will not own and that will be used in producing products supplied under long-term supply agreements are expensed as incurred, unless the supply agreement provides the Company with the non-cancelable right to use the tools or the reimbursement of such costs is contractually guaranteed by the customer. Generally, the customer agrees to reimburse the Company for certain of its tooling costs at the time the customer awards a contract to the Company. |
When the part for which tooling has been developed reaches a production-ready status, the Company is reimbursed by its customer for the cost of the tooling, at which time the tooling becomes the property of the customer. The Company has certain other tooling costs, related to tools the Company has the contractual right to use during the life of the supply arrangement, which are capitalized and amortized over the life of the related product program. Customer-owned tooling is included in prepaid tooling, notes receivable, and other and company-owned tooling is included in other assets, net in the Consolidated Balance Sheets. |
The components of capitalized tooling costs are as follows (in thousands): |
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| | 31-Dec-13 | | 31-Dec-12 | | | | | | | | | | | | |
Customer-owned tooling, net | | $ | 13,111 | | | $ | 33,308 | | | | | | | | | | | | | |
Company-owned tooling | | | 3,113 | | | | 967 | | | | | | | | | | | | | |
Total tooling, net | | $ | 16,224 | | | $ | 34,275 | | | | | | | | | | | | | |
Any gain recognized, which is defined as the excess of reimbursement over cost, is amortized over the life of the program. If estimated costs are expected to be in excess of reimbursement, a loss is recorded in the period in which the loss is estimated. |
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Property, Plant and Equipment, Policy [Policy Text Block] | ' |
f. Property, Plant, and Equipment |
Property, plant, and equipment are recorded at cost, less accumulated depreciation. Depreciation expense was $92 million, $88.3 million, and $98 million for the years ended December 31, 2013, 2012, and 2011, respectively. Depreciation is computed using the straight-line method over the following estimated useful lives of assets: |
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Buildings and improvements | | | 32 to 40 years | | | | | | | | | | | | | | | | | |
Machinery and equipment | | | 3 to 20 years | | | | | | | | | | | | | | | | | |
Leasehold improvements are amortized over the shorter of 10 years or the remaining lease term at the date of acquisition of the leasehold improvement. |
Interest is capitalized during the preparation of facilities for product programs and is amortized over the estimated lives of the programs. Interest of $0.9 million, $1.4 million, and $1.5 million was capitalized in 2013, 2012, and 2011, respectively. |
Costs of maintenance and repairs are charged to expense as incurred and included in cost of sales. Spare parts are considered capital in nature when purchased during the initial investment of a fixed asset. Amounts relating to significant improvements, which extend the useful life or utility of the related asset, are capitalized and depreciated over the remaining life of the asset. Upon disposal or retirement of property, plant, and equipment, the cost and related accumulated depreciation are eliminated from the respective accounts and the resulting gain or loss is recognized in cost of sales in the Consolidated Statements of Operations. |
Property, plant, and equipment consist of the following (in thousands): |
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| | 31-Dec-13 | | 31-Dec-12 | | | | | | | | | | | | |
Cost: | | | | | | | | | | | | | | | | | | | | |
Land | | $ | 20,966 | | | $ | 25,494 | | | | | | | | | | | | | |
Buildings and improvements | | | 233,318 | | | | 227,727 | | | | | | | | | | | | | |
Machinery and equipment | | | 909,090 | | | | 856,296 | | | | | | | | | | | | | |
Construction in progress | | | 63,453 | | | | 55,885 | | | | | | | | | | | | | |
Property, plant, and equipment, gross | | | 1,226,827 | | | | 1,165,402 | | | | | | | | | | | | | |
Less: accumulated depreciation | | | (677,222 | ) | | | (592,254 | ) | | | | | | | | | | | | |
Property, plant, and equipment, net | | $ | 549,605 | | | $ | 573,148 | | | | | | | | | | | | | |
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Asset Retirement Obligations, Policy [Policy Text Block] | ' |
g. Asset Retirement Obligations |
FASB ASC No. 410, Asset Retirement and Environmental Obligations, requires the recognition of a liability for the fair value of a conditional asset retirement obligation if the fair value can be reasonably estimated. An asset retirement obligation is a legal obligation to perform certain activities in connection with the retirement, disposal, or abandonment of tangible long-lived assets. The fair value of a conditional asset retirement obligation should be recognized when incurred, generally upon acquisition, construction, or development and through the normal operation of the asset. Uncertainty about the timing or method of settlement of a conditional asset retirement should be factored into the measurement of the liability. The liability is measured at discounted fair value and is adjusted to its present value in subsequent periods. The Company’s asset retirement obligations are primarily associated with renovating, upgrading, and returning leased property to the lessor, in accordance with the requirements of the lease. |
Asset retirement obligations are included in other non-current liabilities in the Consolidated Balance Sheets. The following table reconciles our asset retirement obligations as of December 31, 2013 and 2012 (in thousands): |
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| | 31-Dec-13 | | 31-Dec-12 | | | | | | | | | | | | |
Beginning balance | | $ | 13,793 | | | $ | 12,268 | | | | | | | | | | | | | |
Accretion expense | | | 1,195 | | | | 1,044 | | | | | | | | | | | | | |
Liabilities settled | | | (148 | ) | | | (347 | ) | | | | | | | | | | | | |
Change in estimate | | | 1,337 | | | | 828 | | | | | | | | | | | | | |
Ending balance | | $ | 16,177 | | | $ | 13,793 | | | | | | | | | | | | | |
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Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block] | ' |
h. Impairment of Long-Lived Assets |
The Company monitors its long-lived assets for impairment on an ongoing basis in accordance with FASB ASC No. 360, Property, Plant, and Equipment. If an impairment indicator exists, the Company will perform the required analysis and record an impairment charge, if necessary. In conducting its impairment analysis, the Company compares the undiscounted cash flows expected to be generated from a long-lived asset to its net book value. If the net book value of an asset exceeds its undiscounted cash flows, an impairment loss is measured and recognized. An impairment loss is measured as the difference between net book value and fair value. Fair value is estimated based upon discounted cash flow analyses using cash flow projections based on recent sales data, and independent automotive production volume estimates, and customer commitments. Changes in economic or operating conditions impacting these estimates and assumptions could result in impairment of long-lived assets. Refer to Note 4 for a discussion regarding impairment charges for the periods presented. |
Long-lived assets held for sale are recorded at the lower of their carrying amount or estimated fair value less cost to sell. |
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Goodwill and Intangible Assets, Policy [Policy Text Block] | ' |
i. Goodwill and Other Intangible Assets |
Goodwill represents the excess of the cost of an acquisition over the fair value of net assets acquired. Goodwill is not amortized, but it is tested for impairment on, at a minimum, an annual basis. In accordance with FASB ASC No. 350, Intangibles — Goodwill and Other, a two-step process is utilized in reviewing for impairment. The first step in the process requires the identification of reporting units and comparison of the fair value of each reporting unit to its respective carrying value. The Company has identified its reporting units as Europe, Asia, North America, and South America, however, goodwill only exists at the Europe and South America units. If the carrying value of a unit is less than its fair value, no impairment is deemed to exist and step two is not necessary. If the carrying value of a unit is greater than its fair value, step two is required. The second step in the impairment review process requires the computation of impairment by comparing the implied fair value of a reporting unit’s goodwill with the carrying amount of its goodwill. In accordance with FASB ASC No. 350, which requires goodwill be tested for impairment annually and at the same time each year, the Company performs an annual impairment each year at year-end. The Company will also test goodwill for impairment when an event occurs or circumstances change such that it is reasonably possible that impairment may exist. |
The Company utilizes an income approach to estimate the fair value of each of its reporting units. The income approach is based on the present value of projected debt free cash flow, discounted using factors that consider the timing and risk of cash flows. Fair value is estimated using automotive industry and specific platform production volume projections, which are based on internally-developed forecasts, as well as commercial, wage and benefit, inflation, and discount rate assumptions. Other significant assumptions include terminal value growth rates, terminal value margin rates, future capital expenditures, known restructuring actions, and changes in future working capital requirements. While there are inherent uncertainties related to the assumptions used and to management’s application of these assumptions, the Company believes that the income approach is appropriate because it provides a reasonable estimate of the fair value of its reporting units, which is based upon the reporting units’ expected long-term operating cash flow performance, and because it mitigates the impact of cyclical industry-related trends. Due to the inherent uncertainties that exist in making and applying these assumptions, they may differ significantly from actual results. In addition to the income approach, the Company also utilizes the market multiple approach to test the reasonableness of the fair value estimate determined using the income approach. |
The results of the Company’s 2013 and 2012 annual goodwill impairment analysis, completed as of year-end of each respective year, indicated that the carrying value of the Europe and South America reporting units was less than their respective fair values; thus, no impairment existed at either date. |
The change in the carrying amount of goodwill is set forth below by reportable segment and on a consolidated basis (in thousands): |
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| | International | | Americas | | Consolidated | | | | | | | | |
Balance at December 31, 2011 | | $ | 60,725 | | | $ | 3,258 | | | $ | 63,983 | | | | | | | | | |
Currency translation adjustment | | | 1,101 | | | | (291 | ) | | | 810 | | | | | | | | | |
Balance at December 31, 2012 | | | 61,826 | | | | 2,967 | | | | 64,793 | | | | | | | | | |
Currency translation adjustment | | | 2,577 | | | | (394 | ) | | | 2,183 | | | | | | | | | |
Balance at December 31, 2013 | | $ | 64,403 | | | $ | 2,573 | | | $ | 66,976 | | | | | | | | | |
The Company has certain intangible assets that are related to customer relationships in Europe and Brazil. The Company also had a covenant not to compete agreement in North America, which expired in December 2012. The intangible assets in Europe and Brazil have definite lives and are amortized on a straight-line basis over the estimated lives of the related assets, which approximate the recognition of related revenues. Intangible assets are recorded in other assets, net on the Consolidated Balance Sheets. The Company anticipates amortization expense of $1.5 million for the year ended December 31, 2014. No further amortization expense is anticipated to be incurred beyond 2014. The Company has incurred amortization expense of $2.8 million, $4.6 million, and $4.6 million for the years ended December 31, 2013, 2012, and 2011, respectively. The following table presents information about the Company’s intangible assets as of December 31, 2013 and 2012, respectively (in thousands): |
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| | Weighted Average | | As of December 31, 2013 | | As of December 31, 2012 |
| Life | | Gross Carrying Amount | | Accumulated Amortization | | Gross Carrying Amount | | Accumulated Amortization |
Amortized intangible: | | | | | | | | | | | | | | | | | | | | |
Europe | | | 7 years | | | $ | 16,038 | | | $ | 14,866 | | | $ | 15,978 | | | $ | 12,759 | |
Brazil | | | 7 years | | | | 5,443 | | | | 5,078 | | | | 5,532 | | | | 4,392 | |
Total | | | | | | $ | 21,481 | | | $ | 19,944 | | | $ | 21,510 | | | $ | 17,151 | |
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Fair Value of Financial Instruments, Policy [Policy Text Block] | ' |
j. Fair Value of Financial Instruments |
FASB ASC No. 820, Fair Value Measurements, defines fair value as the price that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants, at the measurement date (an exit price). The exit price is based upon the amount that the holder of the asset or liability would receive, or need to pay, in an actual transaction, or in a hypothetical transaction if an actual transaction does not exist, at the measurement date. In some circumstances, the entry and exit price may be the same; however, they are conceptually different. |
The Company generally determines fair value based upon quoted market prices in active markets for identical assets or liabilities. If quoted market prices are not available, the Company uses valuation techniques that place greater reliance on observable inputs and less reliance on unobservable inputs. In measuring fair value, the Company may make adjustments for risks and uncertainties, if a market participant would include such an adjustment in its pricing. |
FASB ASC No. 820 establishes a fair value hierarchy that distinguishes between assumptions based upon market data, referred to as observable inputs, and the Company’s assumptions, referred to as unobservable inputs. Determining where an asset or liability falls within that hierarchy depends on the lowest level input that is significant to the fair value measurement as a whole. An adjustment to the pricing method used within either Level 1 or Level 2 inputs could generate a fair value measurement that effectively falls in a lower level in the hierarchy. The hierarchy consists of three broad levels as follows: |
Level 1: Quoted market prices in active markets for identical assets and liabilities; |
Level 2: Inputs, other than Level 1 inputs, that are either directly or indirectly observable; and |
| Level 3: | Unobservable inputs developed using estimates and assumptions that reflect those that market participants would use. | | | | | | | | | | | | | | | | | | |
At December 31, 2013, the carrying value and estimated fair value of the Company’s total debt was $492.6 million and $497.8 million, respectively. At December 31, 2012, the carrying value and estimated fair value of the Company’s total debt was $484.5 million and $529.1 million, respectively. The majority of the Company’s debt at December 31, 2013 was comprised of the Term Loan Credit Facility, which can be traded between financial institutions. Accordingly, this debt has been classified as Level 2. The fair value was determined based upon quoted values. The majority of the Company’s debt at December 31, 2012 was traded and was classified as a Level 2 measurement, based upon the pricing methodology and the limited trading of the securities. The fair value was determined based upon the quoted market values. The remainder of the Company’s debt, primarily consisting of foreign subsidiary indebtedness, is asset-backed and is classified as Level 3. As this debt carries variable rates and minimal credit risk, the book value approximates fair value. |
The Company has foreign exchange hedges that were measured at fair value on a recurring basis at December 31, 2013 and 2012. These hedges are recorded in prepaid tooling, notes receivable, and other or accrued liabilities in the Company’s Consolidated Balance Sheets and are measured using Level 2 observable inputs. The Company engages in foreign exchange hedges to limit exposure to foreign currency fluctuations related to certain intercompany payments. These derivative financial instruments had an immaterial impact on the Consolidated Financial Statements for each of the periods presented. |
The following table provides each major category of assets and liabilities measured at fair value on a nonrecurring basis during the year ended December 31, 2013 (in millions): |
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| | Quoted prices | | Significant other observable inputs | | Significant unobservable | | Total gains/ | | | | |
in active markets for | inputs | (losses) | | | | |
identical assets | | | | | | |
| | Level 1 | | Level 2 | | Level 3 | | | | | |
Long-lived assets held for sale | | | Not applicable | | | | Not applicable | | | $ | 12 | | | $ | (10.5 | ) | | | | |
For the year ended December 31, 2013, in accordance with FASB ASC No. 360, Property, Plant, & Equipment, long-lived assets held for sale with a carrying amount of $22.5 million were written down to their fair value of $12 million, resulting in a loss of $10.4 million, which was included in our Consolidated Statement of Operations for the year ended December 31, 2013. Fair value of the assets was determined using a third party appraisal based on current market conditions. |
The following table provides each major category of assets and liabilities measured at fair value on a nonrecurring basis during the year ended December 31, 2012 (in millions): |
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| | Quoted prices | | Significant other observable inputs | | Significant unobservable inputs | | Total gains/ (losses) | | | | |
in active markets for | | | | |
identical assets | | | | |
| | Level 1 | | Level 2 | | Level 3 | | | | |
Long-lived assets held for sale | | | Not applicable | | | | Not applicable | | | $ | — | | | $ | (0.6 | ) | | | | |
For the year ended December 31, 2012, long-lived assets held for sale with a carrying amount of $0.6 million were written down to their fair value of $0 million, resulting in a loss of $0.6 million, which was included in our Consolidated Statement of Operations for the year ended December 31, 2012. |
The Company did not have any assets or liabilities that were measured at fair value on a nonrecurring basis during the year ended December 31, 2011. |
The carrying amounts of cash and cash equivalents, accounts receivable, accounts payable, and accrual liabilities approximate fair value because of the short maturity of these instruments. |
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Derivatives, Reporting of Derivative Activity [Policy Text Block] | ' |
k. Derivative Financial Instruments |
Periodically, the Company uses derivative financial instruments to manage the risk that changes in interest rates could have on the amount of future interest payments. Interest rate swap contracts are used to adjust the proportion of total debt that is subject to variable and fixed interest rates. The Company is not a party to leveraged derivatives and does not enter into derivative financial instruments for trading or speculative purposes. Under FASB ASC No. 815, Derivatives and Hedging, all derivatives are recorded at fair value. If a derivative does not qualify as an effective cash flow hedge, changes in the fair value of the derivative are immediately included in earnings. If a derivative qualifies as an effective cash flow hedge, changes in the fair value are recognized as a component of AOCI until the underlying item being hedged is recognized in earnings. If a derivative is a fair value hedge, changes in the fair value of the derivative are offset against the changes in the fair value of the underlying item being hedged. |
The Company formally documents hedge relationships, including the identification of the hedging instruments and the hedged items, as well as the risk management objectives and strategies for undertaking the hedge transaction. Effective hedges are recorded in the Consolidated Balance Sheets at fair value in other long-term liabilities or other long-term assets with a corresponding offset to AOCI. This includes linking derivatives that are designated as hedges of specific assets, liabilities, firm commitments, or forecasted transactions. The Company also formally assesses whether a derivative used in a hedging transaction is highly effective in offsetting changes in either the fair value or cash flows of the hedged item at inception and on at least a quarterly basis, thereafter. When the Company determines that a derivative ceases to be an effective hedge, it will discontinue hedge accounting. |
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Revenue Recognition, Policy [Policy Text Block] | ' |
l. Revenue Recognition |
In accordance with FASB ASC No. 605, Revenue Recognition, the Company recognizes revenue once the following criteria have been met: persuasive evidence of an arrangement exists; delivery has occurred or services have been rendered; the Company’s price to the buyer is fixed or determinable; and collectability is reasonably assured. |
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The Company recognizes revenue when its products are shipped to its customers, at which time title and risk of loss pass to the customer. The Company participates in certain of its customers’ steel repurchase programs, under which it purchases steel directly from a customer’s designated steel supplier, for use in manufacturing products for that customer. The Company takes delivery and title to such steel and bears the risk of loss and obsolescence. The Company invoices its customers based upon annually negotiated selling prices, which inherently include a component for steel under such repurchase programs. Under guidance provided in FASB ASC No. 605-45, Principal Agent Considerations, the Company has risks and rewards of a principal and therefore, for sales transactions in which the Company participates in a customer’s steel resale program, revenue is recognized on a gross basis for the entire amount of the sales, including the component for purchases under that customer’s steel resale program. |
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The Company enters into agreements to produce products for its customers at the beginning of a given vehicle program's life. Once such agreements are entered into by the Company, it is obligated to fulfill the customers’ purchasing requirements for the entire production period of the vehicle programs, which range from three to ten years, and generally, the Company has no provisions to terminate such contracts. Additionally, the Company monitors the aging of uncollected billings and adjusts its accounts receivable allowance on a quarterly basis, as necessary, based upon its evaluation of the probability of collection. The adjustments made by the Company due to the write-off of uncollectible amounts have been negligible for all periods presented. |
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Income Tax, Policy [Policy Text Block] | ' |
m. Income Taxes |
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The Company accounts for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, deferred tax assets and liabilities are determined based on the differences between the Consolidated Financial Statements and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The Company records net deferred tax assets to the extent it believes that these assets will more likely than not be realized. In making such determination, the Company considers all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax planning strategies and recent financial operations. Valuation allowances have been recorded where it has been determined that it is more likely than not that the Company will not be able to realize the net deferred tax assets. Previously established valuation allowances are reversed into income when there is compelling evidence, typically three or more consecutive years of cumulative profit or other positive evidence, that the future tax profitability will be sufficient to utilize the deferred tax asset. Due to the significant judgment involved in determining whether deferred tax assets will be realized, the ultimate resolution of these items may be materially different from the previously estimated outcome. |
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Changes in tax laws and rates could also affect recorded deferred tax assets and liabilities in the future. Management is not aware of any such changes that would have a material effect on the Company’s results of operations, cash flows, or financial position. |
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The calculation of the Company’s tax liabilities involves dealing with uncertainties in the application of complex tax laws and regulations in a multitude of jurisdictions across the Company’s global operations. |
FASB ASC No. 740, Income Taxes, provides that a tax benefit from an uncertain tax position may be recognized when it is more likely than not that the position will be sustained upon examination, including resolutions of any related appeals or litigation processes, based on the technical merits. ASC No. 740 also provides guidance on measurement, derecognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition. |
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The Company recognizes tax liabilities in accordance with ASC No. 740 and adjusts these liabilities when its judgment changes as a result of the evaluation of new information not previously available. Due to the complexity of some of these uncertainties, the ultimate resolution may result in a payment that is materially different from the Company’s current estimate of the tax liabilities. These differences will be reflected as increases or decreases to income tax expense in the period in which they are determined. |
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Segment Reporting, Policy [Policy Text Block] | ' |
n. Segment Reporting |
The Company determines its reportable segments based upon the guidance in FASB ASC No. 280, Segment Reporting. The Company defines its operating segments as components of its business where separate financial information is available. The Company is comprised of four operating segments that are routinely evaluated by management: Europe, Asia, North America, and South America. Consistent with the aggregation criteria in FASB ASC No. 280, the Company aggregates its four operating segments into two reportable segments, based upon the segments having similar economic characteristics and sharing fundamental characteristics, including the nature of the products, production processes, customers, margins, and distribution channels. The Company’s two reportable segments include the Americas, which consists of North America and South America, and International, which consists of Europe and Asia. Refer to Note 12 for further discussion regarding our segments. |
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Foreign Currency Transactions and Translations Policy [Policy Text Block] | ' |
o. Foreign Currency Translation |
The functional currency of the Company’s foreign operations is the local currency in which they operate. Assets and liabilities of the Company’s foreign operations are translated into U.S. dollars using the applicable period-end exchange rates. Results of operations are translated at applicable average rates prevailing throughout the period. Gains or losses resulting from foreign currency translation are reported as foreign currency translation adjustments, a separate component of AOCI, in the Consolidated Statements of Comprehensive Income/(Loss). Gains and losses resulting from foreign currency transactions are recognized in net income/(loss) in the Consolidated Statements of Operations and were immaterial for all periods presented. |
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Costs Associated with Exit or Disposal Activities or Restructurings, Policy [Policy Text Block] | ' |
p. Exit or Disposal Activities |
Costs to idle, consolidate, or close facilities and provide postemployment benefits to employees on an other than temporary basis are accrued based on management’s best estimate of the wage and benefit costs that will be incurred. Costs related to idling of employees that is expected to be temporary are expensed as incurred. Costs to terminate a contract without economic benefit to the Company are expensed at the time the contract is terminated. One-time termination benefits that are not subject to contractual arrangements, provided to employees who are involuntarily terminated, are recorded after management commits to a detailed plan of termination, communicates the plan to employees, and when actions required to complete the plan indicate that significant changes are not likely. If employees are required to render services until they are terminated in order to earn termination benefits, the benefits are recognized ratably over the future service period. |
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Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | ' |
q. Share-based Compensation |
The Company measures compensation cost arising from the grant of share-based awards to employees at fair value. The Company recognizes such costs in income over the period during which the requisite service is provided, usually the vesting period. Refer to Note 10 for further discussion regarding share-based compensation. |
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Accumulated Other Comprehensive Income Loss [Policy Text Block] | ' |
r. Accumulated Other Comprehensive Income/(Loss) |
The following table presents the components of accumulated other comprehensive income/(loss) (in thousands): |
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| | As of December 31, | | | | | | | | | | | | |
| | 2013 | | 2012 | | | | | | | | | | | | |
Foreign currency translation | | $ | 24,963 | | | $ | 17,914 | | | | | | | | | | | | | |
Defined benefit plans, net of tax of $13.7 million and $0 million | | | (12,833 | ) | | | (30,350 | ) | | | | | | | | | | | | |
Unrealized gain/(loss) on qualifying cash flow hedge, net | | | 117 | | | | (48 | ) | | | | | | | | | | | | |
Accumulated other comprehensive income/(loss) | | $ | 12,247 | | | $ | (12,484 | ) | | | | | | | | | | | | |
The following table presents the changes in accumulated other comprehensive income/(loss) by component for the year ended December 31, 2013 (in thousands): |
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| | Unrealized Gains/ | | Defined Benefit Plan, Net of Tax | | Foreign Currency Translation Adjustments | | Total | | | | |
(Losses) on Qualifying Cash Flow Hedge | | | | |
Balance as of December 31, 2012 | | $ | (48 | ) | | $ | (30,350 | ) | | $ | 17,914 | | | $ | (12,484 | ) | | | | |
Other comprehensive income before reclassifications | | | 104 | | | | 17,517 | | | | 7,049 | | | | 24,670 | | | | | |
Amounts reclassified from accumulated other comprehensive income | | | 61 | | | | — | | | | — | | | | 61 | | | | | |
Net current-period other comprehensive | | | 165 | | | | 17,517 | | | | 7,049 | | | | 24,731 | | | | | |
income | | | | |
Balance as of December 31, 2013 | | $ | 117 | | | $ | (12,833 | ) | | $ | 24,963 | | | $ | 12,247 | | | | | |
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Use of Estimates, Policy [Policy Text Block] | ' |
s. Estimates |
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The preparation of the Company’s financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosures related to contingent assets and liabilities at the reporting date and the reported amounts of revenues and expenses during the reporting period. Generally, matters subject to estimation and judgment include amounts related to accounts receivable realization, fair value measurements, pension and other postretirement benefit plan assumptions, restructuring reserves, asset valuation reserves and accruals related to environmental remediation costs, asset retirement obligations, and income taxes. Actual results may differ from those estimates and assumptions and changes in such estimates and assumptions may affect amounts reported in future periods. |
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New Accounting Pronouncements, Policy [Policy Text Block] | ' |
t. Accounting Standards Not Yet Adopted |
As of December 31, 2013, the Company has adopted all accounting pronouncements affecting the Company. |
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