Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended | |
Jun. 30, 2014 | Aug. 01, 2014 | |
Document and Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'Knowles Corp | ' |
Entity Central Index Key | '0001587523 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Well-known Seasoned Issuer | 'No | ' |
Entity Voluntary Filers | 'No | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Filer Category | 'Non-accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 85,038,904 |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q2 | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Jun-14 | ' |
CONSOLIDATED_STATEMENTS_OF_EAR
CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited) (USD $) | 3 Months Ended | 6 Months Ended | ||||||
In Thousands, except Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | ||||
Income Statement [Abstract] | ' | ' | ' | ' | ||||
Revenues | $281,033 | $296,709 | $554,418 | $572,827 | ||||
Cost of goods sold | 230,831 | 191,440 | 421,158 | 371,174 | ||||
Restructuring charges - cost of goods sold | 16,417 | 4,041 | 16,417 | 5,864 | ||||
Gross profit | 33,785 | 101,228 | 116,843 | 195,789 | ||||
Research and development expenses | 21,701 | 21,243 | 40,921 | 42,160 | ||||
Selling and administrative expenses | 51,988 | 45,779 | 104,420 | 95,838 | ||||
Restructuring charges | 4,283 | 5,476 | 4,526 | 6,968 | ||||
Operating expenses | 77,972 | 72,498 | 149,867 | 144,966 | ||||
Operating (loss) earnings | -44,187 | 28,730 | -33,024 | 50,823 | ||||
Interest expense, net | 1,820 | 12,069 | 2,492 | 24,017 | ||||
Other (income) expense, net | -201 | 825 | 145 | -1,134 | ||||
(Loss) earnings before income taxes | -45,806 | 15,836 | -35,661 | 27,940 | ||||
Provision for (benefit from) income taxes | 33,097 | -835 | 35,597 | -626 | ||||
Net (loss) earnings | ($78,903) | $16,671 | ($71,258) | $28,566 | ||||
Earnings per share: | ' | ' | ' | ' | ||||
Basic (loss) earnings per share (usd per share) | ($0.93) | [1] | $0.20 | [1] | ($0.84) | [1] | $0.34 | [1] |
Diluted (loss) earnings per share (usd per share) | ($0.93) | [1] | $0.20 | [1] | ($0.84) | [1] | $0.34 | [1] |
Weighted average common shares outstanding: | ' | ' | ' | ' | ||||
Basic (in shares) | 85,042,334 | [1] | 85,019,159 | [1] | 85,033,149 | [1] | 85,019,159 | [1] |
Diluted (in shares) | 85,042,334 | [1] | 85,019,159 | [1] | 85,033,149 | [1] | 85,019,159 | [1] |
[1] | On February 28, 2014, Dover shareholders of record as of the close of business on February 19, 2014 received one share of Knowles common stock for every two shares of Dover's common stock held as of the record date. The computation of basic and diluted earnings per common share for all periods through December 31, 2013 was calculated using the shares distributed on February 28, 2014. |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS (Unaudited) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' | ' |
Net (loss) earnings | ($78,903) | $16,671 | ($71,258) | $28,566 |
Other comprehensive (loss) earnings, net of tax | ' | ' | ' | ' |
Foreign currency translation | -9,239 | 9,222 | -10,889 | -9,917 |
Employee benefit plans: | ' | ' | ' | ' |
Actuarial losses arising during period | 0 | 0 | -115 | 0 |
Amortization or settlement of actuarial losses included in net periodic pension cost | 140 | 94 | 140 | 94 |
Amortization of prior service costs included in net periodic pension cost | 0 | 2 | 0 | 2 |
Total employee benefit plans | 140 | 96 | 25 | 96 |
Changes in fair value of cash flow hedges: | ' | ' | ' | ' |
Unrealized net losses arising during period | 0 | -134 | 0 | -276 |
Net losses reclassified into earnings | 0 | 9 | 0 | 9 |
Total cash flow hedges | 0 | -125 | 0 | -267 |
Other comprehensive (loss) earnings, net of tax | -9,099 | 9,193 | -10,864 | -10,088 |
Comprehensive (loss) earnings | ($88,002) | $25,864 | ($82,122) | $18,478 |
CONSOLIDATED_BALANCE_SHEETS_Un
CONSOLIDATED BALANCE SHEETS (Unaudited) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $44,610 | $105,588 |
Receivables, net of allowances of $838 and $1,686 | 207,287 | 224,556 |
Inventories, net | 155,858 | 149,168 |
Prepaid and other current assets | 15,940 | 11,803 |
Deferred tax assets | 8,040 | 10,708 |
Total current assets | 431,735 | 501,823 |
Property, plant and equipment, net | 335,670 | 360,997 |
Goodwill | 958,151 | 961,916 |
Intangible assets, net | 305,498 | 318,310 |
Other assets and deferred charges | 41,934 | 27,070 |
Total assets | 2,072,988 | 2,170,116 |
Current liabilities: | ' | ' |
Current maturities of long-term debt | 7,500 | 0 |
Accounts payable | 155,096 | 143,812 |
Accrued compensation and employee benefits | 39,051 | 40,918 |
Other accrued expenses | 47,855 | 25,245 |
Federal and other taxes on income | 18,446 | 0 |
Total current liabilities | 267,948 | 209,975 |
Long-term debt | 392,500 | 0 |
Deferred income taxes | 63,735 | 45,891 |
Other liabilities | 30,099 | 27,123 |
Commitments and contingencies (Note 11) | ' | ' |
Equity: | ' | ' |
Net Former Parent Company Investment in Knowles Corporation, prior to Separation | 0 | 1,850,602 |
Stockholders' equity: | ' | ' |
Preferred stock - $0.01 par value; 10,000,000 shares authorized; none issued | 0 | 0 |
Common stock - $0.01 par value; 400,000,000 shares authorized; 85,038,904 shares issued at June 30, 2014 | 850 | 0 |
Additional paid-in capital | 1,367,987 | 0 |
Accumulated deficit | -68,253 | 0 |
Accumulated other comprehensive earnings | 18,122 | 36,525 |
Total stockholders' equity | 1,318,706 | 36,525 |
Total equity | 1,318,706 | 1,887,127 |
Total liabilities and equity | $2,072,988 | $2,170,116 |
Recovered_Sheet1
CONSOLIDATED BALANCE SHEETS (unaudited) (Parenthetical) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Current assets: | ' | ' |
Allowance for doubtful accounts receivable | $838 | $1,686 |
Preferred stock, par value (in dollars per share) | $0.01 | $0 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 0 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $0.01 | $0 |
Common stock, shares authorized (in shares) | 400,000,000 | 0 |
Common stock, shares issued (in shares) | 85,038,904 | 0 |
CONSOLIDATED_STATEMENT_OF_STOC
CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (unaudited) (USD $) | Total | Common Stock | Additional Paid-In Capital | Accumulated Deficit | Accumulated Other Comprehensive Earnings | Net Former Parent Company Investment |
In Thousands, unless otherwise specified | ||||||
Balance at Dec. 31, 2013 | $1,887,127 | $0 | $0 | $0 | $36,525 | $1,850,602 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' |
Net (loss) earnings | -71,258 | ' | ' | -68,253 | ' | -3,005 |
Net transfers to Former Parent Company | -470,425 | ' | ' | ' | ' | -470,425 |
Separation-related adjustments | -19,333 | ' | ' | ' | -7,539 | -11,794 |
Reclassification of Net Former Parent Company Investment in connection with the Separation | 0 | ' | 1,365,378 | ' | ' | -1,365,378 |
Issuance of common stock at Separation | 0 | 850 | -850 | ' | ' | ' |
Other comprehensive loss, net of tax | -10,864 | ' | ' | ' | -10,864 | ' |
Common stock issued for the exercise of stock options | 143 | ' | 143 | ' | ' | ' |
Stock-based compensation expense | 3,316 | ' | 3,316 | ' | ' | ' |
Balance at Jun. 30, 2014 | $1,318,706 | $850 | $1,367,987 | ($68,253) | $18,122 | $0 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Operating Activities | ' | ' |
Net (loss) earnings | ($71,258) | $28,566 |
Adjustments to reconcile net (loss) earnings to cash from operating activities: | ' | ' |
Depreciation and amortization | 71,462 | 65,012 |
Non-cash restructuring related charges | 20,360 | 0 |
Stock-based compensation | 3,903 | 1,129 |
Other, net | 928 | -4,564 |
Cash effect of changes in assets and liabilities (excluding effects of foreign exchange): | ' | ' |
Receivables, net | 15,407 | 21,081 |
Inventories, net | -9,704 | -9,235 |
Prepaid and other current assets | -3,587 | 588 |
Accounts payable | 640 | -25,067 |
Accrued compensation and employee benefits | -4,706 | -4,449 |
Other accrued expenses | 22,895 | 6,661 |
Accrued and deferred taxes, net | 24,000 | -12,046 |
Other non-current assets and non-current liabilities | -5,553 | -10,150 |
Net cash provided by operating activities | 64,787 | 57,526 |
Investing Activities | ' | ' |
Additions to property, plant and equipment | -41,144 | -58,599 |
Proceeds from the sale of property, plant and equipment | 219 | 4,856 |
Capitalized patent defense costs | -8,161 | -3,417 |
Other investment | -8,000 | 0 |
Net cash used in investing activities | -57,086 | -57,160 |
Financing Activities | ' | ' |
Proceeds from debt | 400,000 | 0 |
Debt issuance costs | -2,853 | 0 |
Net proceeds from exercise of stock-based awards | 143 | 0 |
Change in Former Parent Company borrowings, net | 0 | -39,256 |
Net transfers (to) from Former Parent Company | -465,902 | 41,612 |
Net cash (used in) provided by financing activities | -68,612 | 2,356 |
Effect of exchange rate changes on cash and cash equivalents | -67 | -203 |
Net (decrease) increase in cash and cash equivalents | -60,978 | 2,519 |
Cash and cash equivalents at beginning of period | 105,588 | 10,302 |
Cash and cash equivalents at end of period | $44,610 | $12,821 |
Basis_of_Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Basis of Presentation | ' |
Basis of Presentation | |
Description of Business - On February 28, 2014, Knowles Corporation became an independent, publicly-traded company as a result of the distribution by Dover Corporation (“Dover” or “Former Parent”) of 100% of the outstanding common stock of the Company to Dover’s shareholders (the "Separation"). For more information regarding the Separation, see the Company’s Annual Report on Form 10-K for the year ended December 31, 2013. References to “Knowles,” “the Company,” “we,” “our” and “us” refer to Knowles Corporation and its consolidated subsidiaries. The Company engages in the design and manufacture of innovative products and components which serve the mobile consumer electronics, medical technology, telecommunications infrastructure, military/space and other industrial end markets. | |
Financial Statement Presentation - The accompanying unaudited interim Consolidated Financial Statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for quarterly reports on Form 10-Q and do not include all of the information and note disclosures required by U.S. generally accepted accounting principles (“U.S. GAAP”) for complete financial statements. These unaudited interim Consolidated Financial Statements should therefore be read in conjunction with the Combined Financial Statements and Notes thereto for the year ended December 31, 2013 included in the Company’s Annual Report on Form 10-K filed with the SEC on March 28, 2014. | |
The accompanying unaudited interim Consolidated Financial Statements have been prepared in accordance with U.S. GAAP, which requires management to make estimates and assumptions that affect amounts reported in the Consolidated Financial Statements and accompanying disclosures. Although these estimates are based on management’s best knowledge of current events and actions that the Company may undertake in the future, actual results may differ from those estimates. The unaudited interim Consolidated Financial Statements reflect all adjustments of a normal, recurring nature that are, in the opinion of management, necessary for a fair presentation of results for these interim periods. During the three months ended March 31, 2014, the Company corrected its incentive compensation accrual to reflect the actual amounts paid for 2013 incentive compensation, which increased earnings before income taxes by $1,420 ($923 net of tax), and tax expense associated with foreign taxes due on 2012 royalty income, which decreased net earnings by $1,100. During the three months ended June 30, 2014, the Company corrected its severance accrual to include agreements executed in 2013, which decreased earnings before income taxes by $2,105 ($1,579 net of tax). These items are not material to the Consolidated Financial Statements for any impacted period. In addition, certain prior period amounts on the Consolidated Statements of Earnings and the Consolidated Statements of Cash Flows have been reclassified to conform to the current period presentation. | |
Prior to the Separation on February 28, 2014, the Company’s financial statements were prepared on a stand-alone basis and were derived from Dover’s consolidated financial statements and accounting records. The financial statements for those periods include allocations of costs that were incurred by Dover for functions such as corporate human resources, finance and legal, including the costs of salaries, benefits and other related costs. These expenses have been allocated to Knowles based on direct usage or benefit where identifiable, with the remainder allocated on the basis of revenues, headcount, or other measures. Knowles considers the expense allocation methodology reasonable. However, the allocations may not be indicative of the actual expenses had Knowles operated as an independent, publicly-traded company for all periods presented. These allocations, which ceased as of the Separation date, totaled $3,368 and $11,965 during the six months ended June 30, 2014 and 2013, respectively. | |
Revision of Prior Period Financial Statements - During the fourth quarter of 2013, the Company identified a classification error in the Consolidated Statements of Cash Flows whereby accrued capital expenditures and accrued patent defense costs were incorrectly classified as Additions to property, plant and equipment and Capitalized patent defense costs, respectively, within investing activities. The Consolidated Statements of Cash Flows presented herein have been revised to reflect the correction of this error. The results of this correction were an increase in net cash used in investing activities of $16,673 in the six months ending June 30, 2013, with an offsetting increase from net cash provided by operating activities during the same period. This classification error is not considered material to the six months ending June 30, 2013. | |
Related Party Transactions - Knowles made a cash payment of $400,000 to Dover immediately prior to the Separation, which is reflected in Net transfers (to) from Former Parent Company on the Consolidated Statements of Cash Flows and in Net transfers to Former Parent Company on the Consolidated Statement of Stockholders' Equity. In connection with a tax matters agreement entered into with Dover as part of the Separation, the Company had $1,685 recorded in accounts payable at June 30, 2014, which will be paid in the fourth quarter of 2014. | |
Separation-related Adjustments - During the six months ended June 30, 2014, certain Separation-related adjustments were recorded in stockholders' equity, principally due to the transfer of certain pension plan liabilities from Dover upon the legal split of those plans, as well as to adjust the Company's income tax balances to reflect the Company's post-Separation stand-alone income tax positions. In addition, because the historical financial statements were derived from Dover’s accounting records, included in the Separation-related adjustments were adjustments to foreign currency translation adjustments to reflect the appropriate opening balances related to Knowles' legal entities at the Separation date. | |
Non-cash Investing Activities - Purchases of property, plant and equipment included in accounts payable at June 30, 2014 and 2013 were $16,919 and $6,877, respectively. In addition, legal costs incurred in the defense of the Company's patents included in accounts payable at June 30, 2014 and 2013 were $7,123 and $781, respectively. These non-cash amounts are not reflected as outflows to Additions to property, plant and equipment or Capitalized patent defense costs within investing activities of the Consolidated Statements of Cash Flows for the respective periods. |
Inventories
Inventories | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Inventory, Net [Abstract] | ' | |||||||
Inventories, net | ' | |||||||
Inventories, net | ||||||||
June 30, 2014 | December 31, 2013 | |||||||
Raw materials | $ | 63,153 | $ | 55,870 | ||||
Work in progress | 32,585 | 29,886 | ||||||
Finished goods | 95,773 | 92,048 | ||||||
Subtotal | 191,511 | 177,804 | ||||||
Less reserves | (35,653 | ) | (28,636 | ) | ||||
Total | $ | 155,858 | $ | 149,168 | ||||
Property_Plant_and_Equipment_n
Property, Plant and Equipment, net | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||
Property, Plant and Equipment, net | ' | |||||||
Property, Plant and Equipment, net | ||||||||
June 30, 2014 | December 31, 2013 | |||||||
Land | $ | 12,365 | $ | 12,238 | ||||
Buildings and improvements | 104,615 | 85,815 | ||||||
Machinery, equipment and other | 652,562 | 678,386 | ||||||
Subtotal | 769,542 | 776,439 | ||||||
Less accumulated depreciation | (433,872 | ) | (415,442 | ) | ||||
Total | $ | 335,670 | $ | 360,997 | ||||
Goodwill_and_Other_Intangible_
Goodwill and Other Intangible Assets | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||
Goodwill and Other Intangible Assets | ' | |||||||||||||||
Goodwill and Other Intangible Assets | ||||||||||||||||
The following table provides the changes in carrying value of goodwill by reportable segment for the six months ended June 30, 2014: | ||||||||||||||||
Mobile Consumer Electronics | Specialty Components | Total | ||||||||||||||
Balance at December 31, 2013 | $ | 776,349 | $ | 185,567 | $ | 961,916 | ||||||||||
Foreign currency translation | (3,497 | ) | (268 | ) | (3,765 | ) | ||||||||||
Balance at June 30, 2014 | $ | 772,852 | $ | 185,299 | $ | 958,151 | ||||||||||
The following table provides the gross carrying value and accumulated amortization for each major class of intangible asset: | ||||||||||||||||
June 30, 2014 | December 31, 2013 | |||||||||||||||
Gross Carrying | Accumulated | Gross Carrying | Accumulated | |||||||||||||
Amount | Amortization | Amount | Amortization | |||||||||||||
Amortized intangible assets: | ||||||||||||||||
Trademarks | $ | 8,158 | $ | 1,752 | $ | 8,264 | $ | 1,503 | ||||||||
Patents | 48,688 | 9,646 | 47,543 | 17,549 | ||||||||||||
Customer Relationships | 425,822 | 198,745 | 429,429 | 181,232 | ||||||||||||
Unpatented Technologies | 65,742 | 64,857 | 65,757 | 64,574 | ||||||||||||
Other | 1,564 | 1,476 | 1,564 | 1,389 | ||||||||||||
Total | 549,974 | 276,476 | 552,557 | 266,247 | ||||||||||||
Unamortized intangible assets: | ||||||||||||||||
Trademarks | 32,000 | 32,000 | ||||||||||||||
Total intangible assets, net | $ | 305,498 | $ | 318,310 | ||||||||||||
Amortization expense totaled $10,826 and $12,271 for the three months ended June 30, 2014 and 2013, respectively. For the six months ended June 30, 2014 and 2013, amortization expense was $21,537 and $23,984, respectively. |
Restructuring_and_Related_Acti
Restructuring and Related Activities | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Restructuring and Related Activities [Abstract] | ' | |||||||||||||||
Restructuring and Related Activities | ' | |||||||||||||||
Restructuring and Related Activities | ||||||||||||||||
Vienna action | ||||||||||||||||
On April 1, 2014, the Board of Directors authorized the cessation of manufacturing operations at the Company's Vienna, Austria facility as part of the Company's previously-announced plan to consolidate its manufacturing footprint. A summary of the pre-tax charge and remaining costs associated with the action, which was substantially complete by June 30, 2014, is as follows: | ||||||||||||||||
Total Program | Recognized as of June 30, 2014 | Remaining Costs to be Recognized | ||||||||||||||
Severance pay and benefits | $ | 15,883 | $ | 12,555 | $ | 3,328 | ||||||||||
Contract termination and other costs | 5,522 | 4,515 | 1,007 | |||||||||||||
Total | $ | 21,405 | $ | 17,070 | $ | 4,335 | ||||||||||
Of the restructuring charges incurred to date, $12,506 were classified as Cost of goods sold and $4,564 were classified as Operating expenses on the respective Restructuring charges lines on the Consolidated Statements of Earnings. These charges all relate to cash expenditures, the majority of which will be paid during the remainder of 2014. | ||||||||||||||||
In conjunction with this restructuring action, the Company also accelerated depreciation on fixed assets and recorded inventory charges related to product lines that were exited of $20,360. These non-cash costs were classified as Cost of goods sold on the Consolidated Statements of Earnings. | ||||||||||||||||
The Company anticipates annual savings of $25,000 to $30,000 associated with this action beginning during the third quarter of 2014, mainly due to reduced salary and fixed asset depreciation expenses. | ||||||||||||||||
Other actions | ||||||||||||||||
In line with the Company's previously announced plans to consolidate its manufacturing footprint, the Company also had other actions underway during the three and six months ended June 30, 2014 that are designed to better align the Company's operations with current market conditions through targeted facility consolidations, headcount reductions and other measures to further optimize operations. These actions included programs to transfer the Company's hearing health business and certain of its North American based capacitor business into new and existing lower-cost Asian manufacturing facilities as well as to reduce headcount in the consumer electronics business. | ||||||||||||||||
During the three and six months ended June 30, 2013, the restructuring charges were related to the reduction in headcount within the Company's German and North American operations that serve the telecom infrastructure market in order to better align the business with current market dynamics, the migration of the Company's U.K. based capacitor production into existing Asian manufacturing facilities, and the integration of activities within the consumer electronics business. | ||||||||||||||||
The following table details restructuring charges incurred by reportable segment for the periods presented: | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Mobile Consumer Electronics | $ | 18,111 | $ | 4,718 | $ | 18,111 | $ | 6,916 | ||||||||
Specialty Components | 2,589 | 4,799 | 2,832 | 5,916 | ||||||||||||
Total | $ | 20,700 | $ | 9,517 | $ | 20,943 | $ | 12,832 | ||||||||
The following table details the Company’s severance and other restructuring accrual activity: | ||||||||||||||||
Severance Pay and Benefits | Contract Termination and Other Costs | Total | ||||||||||||||
Balance at December 31, 2013 | $ | 5,000 | $ | 534 | $ | 5,534 | ||||||||||
Restructuring charges | 15,907 | 5,036 | 20,943 | |||||||||||||
Payments | (5,220 | ) | (529 | ) | (5,749 | ) | ||||||||||
Other, including foreign currency | 767 | 11 | 778 | |||||||||||||
Balance at June 30, 2014 | $ | 16,454 | $ | 5,052 | $ | 21,506 | ||||||||||
The severance and restructuring accruals are recorded in the following accounts on the Consolidated Balance Sheet: | ||||||||||||||||
30-Jun-14 | 31-Dec-13 | |||||||||||||||
Other accrued expenses | 19,669 | $ | 5,534 | |||||||||||||
Other liabilities (1) | 1,837 | — | ||||||||||||||
Total | $ | 21,506 | $ | 5,534 | ||||||||||||
(1) This represents the long-term portion of the charges associated with lease obligations, net of reasonably obtainable sublease income. |
Borrowings
Borrowings | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Debt Disclosure [Abstract] | ' | |||||||||||||||
Borrowings | ' | |||||||||||||||
Borrowings | ||||||||||||||||
On January 27, 2014, the Company entered into a $200,000 five-year senior secured revolving credit facility, as well as a $300,000 five-year senior secured term loan facility, which are referred to collectively as the “Credit Facilities.” In connection with the Separation from Dover, the Company incurred $100,000 of borrowings under the revolving credit facility and $300,000 of borrowings under the term loan facility, in each case to finance a cash payment to Dover immediately prior to the Separation. | ||||||||||||||||
Borrowings at June 30, 2014 consist of the following: | ||||||||||||||||
June 30, 2014 | ||||||||||||||||
Term Loan | $ | 300,000 | ||||||||||||||
Revolving Credit Facility | 100,000 | |||||||||||||||
Total | 400,000 | |||||||||||||||
Less: current maturities | 7,500 | |||||||||||||||
Total long-term debt | $ | 392,500 | ||||||||||||||
The Credit Facilities include a requirement, to be tested quarterly, that the Company maintains both (i) a minimum ratio of consolidated EBITDA to consolidated interest expense of 3.25 to 1.0 and (ii) a maximum ratio of consolidated total indebtedness to consolidated EBITDA of 3.25 to 1.0. For these ratios, consolidated EBITDA and consolidated interest expense are calculated using the most recent four consecutive fiscal quarters in a manner defined in the credit agreement. At June 30, 2014, the Company was in compliance with these covenants and it expects to remain in compliance with all of its debt covenants over the next twelve months. | ||||||||||||||||
The interest rate under the Credit Facilities is variable based on LIBOR at the time of the borrowing and the Company's leverage as measured by a total indebtedness to consolidated EBITDA ratio. Based upon the Company's total indebtedness to consolidated EBITDA ratio, the Company's borrowing rate could range from LIBOR + 1.25% to LIBOR + 2.25%. At June 30, 2014, the interest rate for the Credit Facilities was 1.65%. | ||||||||||||||||
Interest expense and interest income for the three and six months ended June 30, 2014 and 2013 were as follows: | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Interest expense | $ | 1,832 | $ | 13,107 | $ | 2,515 | $ | 26,129 | ||||||||
Interest income | (12 | ) | (1,038 | ) | (23 | ) | (2,112 | ) | ||||||||
Interest expense, net | $ | 1,820 | $ | 12,069 | $ | 2,492 | $ | 24,017 | ||||||||
The interest expense, net for the three and six months ended June 30, 2013 primarily relates to interest expense on the net notes payable with Dover that were settled during the fourth quarter of 2013 in anticipation of the Separation. |
Other_Comprehensive_Loss_Earni
Other Comprehensive (Loss) Earnings | 6 Months Ended | |||||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||||
Other Comprehensive Income (Loss), Net of Tax [Abstract] | ' | |||||||||||||||||||||||
Other Comprehensive (Loss) Earnings | ' | |||||||||||||||||||||||
Other Comprehensive (Loss) Earnings | ||||||||||||||||||||||||
The amounts recognized in other comprehensive (loss) earnings were as follows: | ||||||||||||||||||||||||
Three Months Ended | Three Months Ended | |||||||||||||||||||||||
30-Jun-14 | 30-Jun-13 | |||||||||||||||||||||||
Pre-tax | Tax | Net of tax | Pre-tax | Tax | Net of tax | |||||||||||||||||||
Foreign currency translation | $ | (9,239 | ) | $ | (9,239 | ) | $ | 9,222 | $ | 9,222 | ||||||||||||||
Employee benefit plans | 215 | (75 | ) | 140 | 127 | (31 | ) | 96 | ||||||||||||||||
Changes in fair value of cash flow hedges | — | — | — | (192 | ) | 67 | (125 | ) | ||||||||||||||||
Total other comprehensive (loss) earnings | $ | (9,024 | ) | $ | (75 | ) | $ | (9,099 | ) | $ | 9,157 | $ | 36 | $ | 9,193 | |||||||||
Six Months Ended | Six Months Ended | |||||||||||||||||||||||
30-Jun-14 | 30-Jun-13 | |||||||||||||||||||||||
Pre-tax | Tax | Net of tax | Pre-tax | Tax | Net of tax | |||||||||||||||||||
Foreign currency translation | $ | (10,889 | ) | $ | (10,889 | ) | $ | (9,917 | ) | $ | (9,917 | ) | ||||||||||||
Employee benefit plans | 38 | (13 | ) | 25 | 127 | (31 | ) | 96 | ||||||||||||||||
Changes in fair value of cash flow hedges | — | — | — | (410 | ) | 143 | (267 | ) | ||||||||||||||||
Total other comprehensive loss | $ | (10,851 | ) | $ | (13 | ) | $ | (10,864 | ) | $ | (10,200 | ) | $ | 112 | $ | (10,088 | ) | |||||||
The following tables summarize the changes in balances of each component of accumulated other comprehensive earnings (loss), net of tax during the six months ended June 30, 2014 and 2013. | ||||||||||||||||||||||||
Cumulative foreign currency translation adjustments | Employee benefit plans | Total | ||||||||||||||||||||||
Balance at December 31, 2013 | $ | 44,379 | $ | (7,854 | ) | $ | 36,525 | |||||||||||||||||
Other comprehensive loss | (10,889 | ) | 25 | (10,864 | ) | |||||||||||||||||||
Separation-related adjustments | (7,204 | ) | (335 | ) | (7,539 | ) | ||||||||||||||||||
Balance at June 30, 2014 | $ | 26,286 | $ | (8,164 | ) | $ | 18,122 | |||||||||||||||||
Cash flow hedges | Cumulative foreign currency translation adjustments | Employee benefit plans | Total | |||||||||||||||||||||
Balance at December 31, 2012 | $ | — | $ | 11,784 | $ | (8,019 | ) | $ | 3,765 | |||||||||||||||
Other comprehensive loss | (267 | ) | (9,917 | ) | 96 | (10,088 | ) | |||||||||||||||||
Balance at June 30, 2013 | $ | (267 | ) | $ | 1,867 | $ | (7,923 | ) | $ | (6,323 | ) | |||||||||||||
Income_Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2014 | |
Income Tax Disclosure [Abstract] | ' |
Income Taxes | ' |
Income Taxes | |
Income taxes for the interim periods presented have been included in the accompanying Consolidated Financial Statements on the basis of an estimated annual effective tax rate ("ETR"). The determination of the consolidated provision for income taxes requires management to make certain judgments and estimates. Changes in the estimated level of annual pre-tax earnings, tax laws, and changes resulting from tax audits can affect the overall effective income tax rate, which impacts the level of income tax expense and net income. Judgments and estimates related to the Company’s projections and assumptions are inherently uncertain; therefore, actual results could differ materially from projections. The year-to-date ETR deviates from the statutory U.S. federal income tax rate, mainly due to the taxing jurisdictions in which the Company and its foreign subsidiaries generate taxable income or loss, the favorable impact of its tax holidays in Malaysia and judgments as to the realizability of the Company’s deferred tax assets. | |
The Company's ETR for the three and six months ended June 30, 2014 was (72.3)% and (99.8)%, respectively. During the three and six months ended June 30, 2014, the ETR was impacted by discrete items totaling $32,716 and $35,708, respectively. During the three months ended June 30, 2014, the Company recorded a valuation allowance of $36,793 on certain foreign subsidiaries' net deferred tax assets, primarily net operating losses, as the Company believes it is more likely than not that these assets will not be realized, which was partially offset by a benefit related to an additional Malaysia tax holiday of $4,352. This tax holiday provides a full income tax exemption on certain MEMS manufacturing income for a ten year period commencing on July 26, 2011. This tax holiday is contingent on the Company meeting specified criteria, including investment in fixed assets and research and development activities. The benefit of this tax holiday for both the three and six months ended June 30, 2014 was $0.06 per share. This benefit primarily relates to 2013; however, it was recorded in the three months ended June 30, 2014 because that is when the Company received approval of the tax holiday from the relevant taxing authority. | |
The ETR for the three and six months ended June 30, 2013 was (5.3)% and (2.2)%, respectively. During the three and six months ended June 30, 2013, the ETR was impacted by net discrete tax items, principally related to the conclusion of certain international tax audits. | |
Absent the discrete items, the ETR for the three and six months ended June 30, 2014 was (0.8)% and 0.3%, respectively. Absent the discrete items, the ETR for the three and six months ended June 30, 2013 was (2.8)%. The change in the ETR, excluding the discrete items, was due to the mix of earnings and losses by taxing jurisdictions. | |
During the six months ended June 30, 2014, the Company’s income tax balances were adjusted to reflect the Company’s post-Separation stand-alone income tax positions, including those related to tax loss and credit carryforwards, other deferred tax assets and valuation allowances. These Separation-related adjustments resulted in a $10,066 increase to the net deferred tax liability, primarily due to a decrease in tax loss and credit carryforwards, partially offset by a decrease in the Company's valuation allowances. The increase in the net deferred tax liability was offset by a corresponding decrease in Net Former Parent Company Investment. |
Equity_Incentive_Program
Equity Incentive Program | 6 Months Ended | |||||||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||||||
Share-based Compensation [Abstract] | ' | |||||||||||||||||||||||||
Equity Incentive Program | ' | |||||||||||||||||||||||||
Equity Incentive Program | ||||||||||||||||||||||||||
Stock-based compensation expense recognized in the Consolidated Statements of Earnings totaled $2,417 and $564 for the three months ended June 30, 2014 and 2013, respectively. For the six months ended June 30, 2014 and 2013, stock-based compensation expense was $3,903 and $1,129, respectively. Prior to the Separation, stock-based compensation expense was allocated to Knowles based on the portion of Dover's equity incentive program in which Knowles employees participated. | ||||||||||||||||||||||||||
Adopted in connection with the Separation, Knowles' Equity and Cash Incentive Plan provides for the assumption of certain awards granted under Dover's equity incentive program and authorizes the grant of several different forms of benefits, including stock options, restricted stock units ("RSUs"), and stock-settled stock appreciation rights ("SSARs"). | ||||||||||||||||||||||||||
In connection with the Separation, Dover equity awards previously granted to employees of the Company were converted to Knowles equity awards under the Company's Equity and Cash Incentive Plan. In general, each award is subject to the same terms and conditions as were in effect prior to the Separation, except that Dover performance shares converted to time-based RSUs. In addition, the Company made a grant comprised of both stock options and time-based RSUs that will vest 50% on the third and fourth anniversaries from the date of the grant. The Company also made a grant of both stock options and time-based RSUs that will vest evenly over the next three years. Lastly, the independent directors received a grant of Company shares that vested immediately, receipt of which was deferred by some of the recipients. The Company has elected to use the straight-line method to attribute the expense over the service period of the awards. | ||||||||||||||||||||||||||
Stock Options | ||||||||||||||||||||||||||
The expense related to stock options granted in the six months ended June 30, 2014, was estimated on the date of grant using a Black-Scholes option-pricing model based on the assumptions shown in the table below. There were no stock options granted in the three months ended June 30, 2014. | ||||||||||||||||||||||||||
Risk-free interest rate | 1.32 | % | to | 1.63% | ||||||||||||||||||||||
Dividend yield | —% | |||||||||||||||||||||||||
Expected life (years) | 4.5 | to | 5.3 | |||||||||||||||||||||||
Volatility | 44.4 | % | to | 49.90% | ||||||||||||||||||||||
Fair value at date of grant | $11.25 | to | $13.50 | |||||||||||||||||||||||
The following table summarizes the Company's SSAR and stock option activity for the six months ended June 30, 2014. | ||||||||||||||||||||||||||
SSARs | Stock Options | |||||||||||||||||||||||||
Number of Shares | Weighted-Average Exercise Price | Aggregate Intrinsic Value | Weighted-Average Remaining Contractual Term (Years) | Number of Shares | Weighted-Average Exercise Price | Aggregate Intrinsic Value | Weighted-Average Remaining Contractual Term (Years) | |||||||||||||||||||
Outstanding at December 31, 2013 | — | $ | — | — | $ | — | ||||||||||||||||||||
Converted | 1,085,643 | 20.85 | 13,680 | 12.65 | ||||||||||||||||||||||
Granted | — | — | 1,291,995 | 29.53 | ||||||||||||||||||||||
Exercised | — | — | (11,280 | ) | 12.65 | |||||||||||||||||||||
Forfeited | — | — | (4,000 | ) | 29.53 | |||||||||||||||||||||
Outstanding at June 30, 2014 | 1,085,643 | $ | 20.85 | $ | 10,742 | 7.3 | 1,290,395 | $ | 29.5 | $ | 1,602 | 6.7 | ||||||||||||||
Exercisable at June 30, 2014 | 393,527 | $ | 17.33 | $ | 5,277 | 5.7 | 2,400 | $ | 12.65 | $ | 43 | 0.6 | ||||||||||||||
Unrecognized compensation expense related to SSARs and stock options not yet exercisable at June 30, 2014 was $1,720 and $14,614, respectively. This cost is expected to be recognized over a weighted-average period of 1.4 years for SSARs and 2.5 years for stock options. | ||||||||||||||||||||||||||
RSUs | ||||||||||||||||||||||||||
The following table summarizes the Company's RSU balances for the six months ended June 30, 2014. | ||||||||||||||||||||||||||
Share units | Weighted-average grant date fair value | |||||||||||||||||||||||||
Outstanding at December 31, 2013 | — | $ | — | |||||||||||||||||||||||
Converted (1) | 21,557 | 12.36 | ||||||||||||||||||||||||
Granted | 361,674 | 29.53 | ||||||||||||||||||||||||
Forfeited | (1,016 | ) | 29.53 | |||||||||||||||||||||||
Outstanding at June 30, 2014 | 382,215 | $ | 28.56 | |||||||||||||||||||||||
(1) The weighted-average grant date fair value is equal to the fair value at the date of conversion as opposed to the fair value when originally issued under Dover's plan. | ||||||||||||||||||||||||||
At June 30, 2014, $9,954 of unrecognized compensation expense related to RSUs is expected to be recognized over a weighted-average period of 2.4 years. | ||||||||||||||||||||||||||
Director Awards | ||||||||||||||||||||||||||
On March 7, 2014, the independent directors received grants totaling 16,930 shares with a grant date fair value of $29.53 per share. These shares vested immediately upon issuance. |
Earnings_per_Share
Earnings per Share | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||
Earnings per Share | ' | |||||||||||||||
Earnings per Share | ||||||||||||||||
The following table sets forth a reconciliation of the information used in computing basic and diluted shares outstanding and amounts used in computing the respective earnings per share: | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Net (loss) earnings | $ | (78,903 | ) | $ | 16,671 | $ | (71,258 | ) | $ | 28,566 | ||||||
Basic (loss) earnings per common share: | ||||||||||||||||
Basic weighted-average shares outstanding (1) | 85,042,334 | 85,019,159 | 85,033,149 | 85,019,159 | ||||||||||||
Basic (loss) earnings per share (1) | $ | (0.93 | ) | $ | 0.2 | $ | (0.84 | ) | $ | 0.34 | ||||||
Diluted (loss) earnings per common share: | ||||||||||||||||
Basic weighted-average shares outstanding (1) | 85,042,334 | 85,019,159 | 85,033,149 | 85,019,159 | ||||||||||||
Dilutive effect of stock-based awards | — | — | — | — | ||||||||||||
Diluted weighted-average shares outstanding (1) | 85,042,334 | 85,019,159 | 85,033,149 | 85,019,159 | ||||||||||||
Diluted (loss) earnings per share (1) | $ | (0.93 | ) | $ | 0.2 | $ | (0.84 | ) | $ | 0.34 | ||||||
(1) On February 28, 2014, Dover shareholders of record as of the close of business on February 19, 2014 received one share of Knowles common stock for every two shares of Dover's common stock held as of the record date. The computation of basic and diluted earnings per common share for all periods through December 31, 2013 was calculated using the shares distributed on February 28, 2014. | ||||||||||||||||
For the three and six months ended June 30, 2014, the weighted-average number of anti-dilutive potential common shares excluded from the calculation above was 1,750,303 and 1,124,110, respectively. |
Commitments_and_Contingent_Lia
Commitments and Contingent Liabilities | 6 Months Ended |
Jun. 30, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Commitments and Contingent Liabilities | ' |
Commitments and Contingent Liabilities | |
The Company is involved in various legal proceedings, claims and investigations arising in the normal course of its business, including those related to intellectual property which may be owned by it or others. The Company owns many patents which cover products, technology and manufacturing processes. Some of these patents have been and, the Company expects, will continue to be challenged by others. In appropriate cases, the Company has taken and will take steps to protect and defend its patents and other intellectual property, including through the use of legal proceedings in various jurisdictions around the world. Such steps may result in retaliatory legal proceedings, including litigation or other legal proceedings in various forums and jurisdictions around the world alleging infringement by the Company of patents owned by others. The costs of investigations and legal proceedings, particularly multi-forum litigation, relating to the enforcement and defense of the Company’s intellectual property may be material. Additionally, in multi-forum disputes the Company may incur adverse judgments with regard to certain claims in certain forums while still contesting other related claims against the same opposing party in other forums. Based on the strength of its intellectual property and its prior experience enforcing it, the Company's current assessment is that the ultimate disposition of these matters is not expected to have a material adverse effect on its operating results or financial condition. The Company will periodically review the probable outcome of such proceedings, their impact on its operations, the associated costs and expenses incurred and reasonably expected to be incurred, and the amounts accrued. | |
In addition, the Company may, on a limited, customer specific basis, provide contractual indemnities for certain losses that arise out of claims that its products infringe the intellectual property of others. Historically, the Company has not made significant payments under such indemnity arrangements. At June 30, 2014 and 2013, the Company’s legal reserves were not significant. |
Segment_Information
Segment Information | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||
Segment Information | ' | |||||||||||||||
Segment Information | ||||||||||||||||
Knowles is organized into two reportable segments based on how management analyzes performance, allocates capital and makes strategic and operational decisions. These segments were determined in accordance with Financial Accounting Standards Board ("FASB") Accounting Standards Codification Topic 280 - Segment Reporting and include (i) Mobile Consumer Electronics and (ii) Specialty Components. The segments are aligned around similar product applications serving Knowles' key end markets to enhance focus on end market growth strategies. | ||||||||||||||||
• | Mobile Consumer Electronics designs and manufactures innovative acoustic products, including microphones, speakers, receivers and integrated audio solutions, used in several applications that serve the handset, tablet and other consumer electronic markets. | |||||||||||||||
• | Specialty Components specializes in the design and manufacture of specialized electronic components used in medical and life science applications, as well as high-performance solutions and components used in communications infrastructure and a wide variety of other markets. Specialty Components' transducer products are used principally in hearing aid applications within the commercial audiology markets, while its oscillator products predominantly serve the telecom infrastructure market and its capacitor products are used in applications including radio, radar, satellite, power supplies, transceivers and medical implants serving the defense, aerospace, telecommunication, and life sciences markets. | |||||||||||||||
Information regarding the Company's reportable segments is as follows: | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Revenue: | ||||||||||||||||
Mobile Consumer Electronics | $ | 166,743 | $ | 189,655 | $ | 330,733 | $ | 359,426 | ||||||||
Specialty Components | 114,300 | 107,063 | 223,706 | 213,427 | ||||||||||||
Intra-segment eliminations | (10 | ) | (9 | ) | (21 | ) | (26 | ) | ||||||||
Total consolidated revenue | $ | 281,033 | $ | 296,709 | $ | 554,418 | $ | 572,827 | ||||||||
(Loss) earnings before interest and income taxes: (1) | ||||||||||||||||
Mobile Consumer Electronics | $ | (47,535 | ) | $ | 26,993 | $ | (40,683 | ) | $ | 47,389 | ||||||
Specialty Components | 14,832 | 11,748 | 30,532 | 26,538 | ||||||||||||
Total segments | (32,703 | ) | 38,741 | (10,151 | ) | 73,927 | ||||||||||
Corporate expense / other | 11,283 | 10,836 | 23,018 | 21,970 | ||||||||||||
Interest expense, net | 1,820 | 12,069 | 2,492 | 24,017 | ||||||||||||
(Loss) earnings before income taxes | (45,806 | ) | 15,836 | (35,661 | ) | 27,940 | ||||||||||
Provision for (benefit from) income taxes | 33,097 | (835 | ) | 35,597 | (626 | ) | ||||||||||
Net (loss) earnings | $ | (78,903 | ) | $ | 16,671 | $ | (71,258 | ) | $ | 28,566 | ||||||
(1) During the first quarter of 2014, the Company began using earnings before interest and income taxes as the measure to make decisions about allocating resources to segments and assessing segment performance instead of earnings before interest, income taxes, depreciation and amortization. |
Recent_Accounting_Standards
Recent Accounting Standards | 6 Months Ended |
Jun. 30, 2014 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | ' |
Recent Accounting Standards | ' |
Recent Accounting Standards | |
Recently Issued Accounting Standards | |
In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2014-09 that introduces a new five-step revenue recognition model in which an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This ASU also requires disclosures sufficient to enable users to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers, including qualitative and quantitative disclosures about contracts with customers, significant judgments and changes in judgments, and assets recognized from the costs to obtain or fulfill a contract. This standard is effective for fiscal years beginning after December 15, 2016, including interim periods within that reporting period. The Company is currently evaluating the new guidance to determine the impact it will have on its Consolidated Financial Statements. | |
In April 2014, the FASB issued ASU 2014-08, which includes amendments that change the requirements for reporting discontinued operations and require additional disclosures about discontinued operations. Under the new guidance, only disposals representing a strategic shift in operations - that is, a major effect on the organization's operations and financial results - should be presented as discontinued operations. Examples include a disposal of a major geographic area, a major line of business, or a major equity method investment. Additionally, the ASU requires expanded disclosures about discontinued operations that will provide financial statement users with more information about the assets, liabilities, income, and expenses of discontinued operations. This update will be effective for Knowles in the first quarter of 2015. The Company does not expect the new guidance to have a significant impact on its Consolidated Financial Statements. | |
Recently Adopted Accounting Standards | |
In July 2013, the FASB issued ASU 2013-11, which provides that an unrecognized tax benefit, or a portion thereof, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except to the extent that a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date to settle any additional income taxes that would result from disallowance of a tax position, or the tax law does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, then the unrecognized tax benefit should be presented as a liability. This standard is effective for Knowles for fiscal years beginning after December 15, 2013. The Company's adoption of this standard did not have a significant impact on its Consolidated Financial Statements. | |
In February 2013, the FASB issued ASU 2013-02 which requires additional disclosures regarding the reporting of reclassifications out of accumulated other comprehensive income. ASU 2013-02 requires an entity to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income but only if the amount reclassified is required under U.S. GAAP to be reclassified to net income in its entirety in the same reporting period. This guidance is effective for reporting periods beginning after December 15, 2012. The Company adopted this guidance effective January 1, 2013. The Company's adoption of this standard did not have a significant impact on its Consolidated Financial Statements. |
Basis_of_Presentation_Basis_of
Basis of Presentation Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Basis of Accounting Policy | ' |
Financial Statement Presentation - The accompanying unaudited interim Consolidated Financial Statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for quarterly reports on Form 10-Q and do not include all of the information and note disclosures required by U.S. generally accepted accounting principles (“U.S. GAAP”) for complete financial statements. These unaudited interim Consolidated Financial Statements should therefore be read in conjunction with the Combined Financial Statements and Notes thereto for the year ended December 31, 2013 included in the Company’s Annual Report on Form 10-K filed with the SEC on March 28, 2014. | |
The accompanying unaudited interim Consolidated Financial Statements have been prepared in accordance with U.S. GAAP, which requires management to make estimates and assumptions that affect amounts reported in the Consolidated Financial Statements and accompanying disclosures. Although these estimates are based on management’s best knowledge of current events and actions that the Company may undertake in the future, actual results may differ from those estimates. The unaudited interim Consolidated Financial Statements reflect all adjustments of a normal, recurring nature that are, in the opinion of management, necessary for a fair presentation of results for these interim periods. | |
Consolidation Policy | ' |
Prior to the Separation on February 28, 2014, the Company’s financial statements were prepared on a stand-alone basis and were derived from Dover’s consolidated financial statements and accounting records. The financial statements for those periods include allocations of costs that were incurred by Dover for functions such as corporate human resources, finance and legal, including the costs of salaries, benefits and other related costs. These expenses have been allocated to Knowles based on direct usage or benefit where identifiable, with the remainder allocated on the basis of revenues, headcount, or other measures. Knowles considers the expense allocation methodology reasonable. However, the allocations may not be indicative of the actual expenses had Knowles operated as an independent, publicly-traded company for all periods presented. |
Inventories_Tables
Inventories (Tables) | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Inventory, Net [Abstract] | ' | |||||||
Components of Inventory | ' | |||||||
Inventories, net | ||||||||
June 30, 2014 | December 31, 2013 | |||||||
Raw materials | $ | 63,153 | $ | 55,870 | ||||
Work in progress | 32,585 | 29,886 | ||||||
Finished goods | 95,773 | 92,048 | ||||||
Subtotal | 191,511 | 177,804 | ||||||
Less reserves | (35,653 | ) | (28,636 | ) | ||||
Total | $ | 155,858 | $ | 149,168 | ||||
Property_Plant_and_Equipment_T
Property, Plant and Equipment (Tables) | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||
Components of property, plant and equipment, net | ' | |||||||
Property, Plant and Equipment, net | ||||||||
June 30, 2014 | December 31, 2013 | |||||||
Land | $ | 12,365 | $ | 12,238 | ||||
Buildings and improvements | 104,615 | 85,815 | ||||||
Machinery, equipment and other | 652,562 | 678,386 | ||||||
Subtotal | 769,542 | 776,439 | ||||||
Less accumulated depreciation | (433,872 | ) | (415,442 | ) | ||||
Total | $ | 335,670 | $ | 360,997 | ||||
Goodwill_and_Other_Intangible_1
Goodwill and Other Intangible Assets (Tables) | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||
Goodwill | ' | |||||||||||||||
The following table provides the changes in carrying value of goodwill by reportable segment for the six months ended June 30, 2014: | ||||||||||||||||
Mobile Consumer Electronics | Specialty Components | Total | ||||||||||||||
Balance at December 31, 2013 | $ | 776,349 | $ | 185,567 | $ | 961,916 | ||||||||||
Foreign currency translation | (3,497 | ) | (268 | ) | (3,765 | ) | ||||||||||
Balance at June 30, 2014 | $ | 772,852 | $ | 185,299 | $ | 958,151 | ||||||||||
Schedule of Intangible Assets | ' | |||||||||||||||
The following table provides the gross carrying value and accumulated amortization for each major class of intangible asset: | ||||||||||||||||
June 30, 2014 | December 31, 2013 | |||||||||||||||
Gross Carrying | Accumulated | Gross Carrying | Accumulated | |||||||||||||
Amount | Amortization | Amount | Amortization | |||||||||||||
Amortized intangible assets: | ||||||||||||||||
Trademarks | $ | 8,158 | $ | 1,752 | $ | 8,264 | $ | 1,503 | ||||||||
Patents | 48,688 | 9,646 | 47,543 | 17,549 | ||||||||||||
Customer Relationships | 425,822 | 198,745 | 429,429 | 181,232 | ||||||||||||
Unpatented Technologies | 65,742 | 64,857 | 65,757 | 64,574 | ||||||||||||
Other | 1,564 | 1,476 | 1,564 | 1,389 | ||||||||||||
Total | 549,974 | 276,476 | 552,557 | 266,247 | ||||||||||||
Unamortized intangible assets: | ||||||||||||||||
Trademarks | 32,000 | 32,000 | ||||||||||||||
Total intangible assets, net | $ | 305,498 | $ | 318,310 | ||||||||||||
Restructuring_ActivitiesTables
Restructuring Activities(Tables) | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Restructuring and Related Activities [Abstract] | ' | |||||||||||||||
Schedule of Restructuring Costs Recognized and Remaining Costs | ' | |||||||||||||||
A summary of the pre-tax charge and remaining costs associated with the action, which was substantially complete by June 30, 2014, is as follows: | ||||||||||||||||
Total Program | Recognized as of June 30, 2014 | Remaining Costs to be Recognized | ||||||||||||||
Severance pay and benefits | $ | 15,883 | $ | 12,555 | $ | 3,328 | ||||||||||
Contract termination and other costs | 5,522 | 4,515 | 1,007 | |||||||||||||
Total | $ | 21,405 | $ | 17,070 | $ | 4,335 | ||||||||||
Schedule of Restructuring and Related Costs | ' | |||||||||||||||
The following table details restructuring charges incurred by reportable segment for the periods presented: | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Mobile Consumer Electronics | $ | 18,111 | $ | 4,718 | $ | 18,111 | $ | 6,916 | ||||||||
Specialty Components | 2,589 | 4,799 | 2,832 | 5,916 | ||||||||||||
Total | $ | 20,700 | $ | 9,517 | $ | 20,943 | $ | 12,832 | ||||||||
Schedule of Restructuring Reserve by Type of Cost | ' | |||||||||||||||
The following table details the Company’s severance and other restructuring accrual activity: | ||||||||||||||||
Severance Pay and Benefits | Contract Termination and Other Costs | Total | ||||||||||||||
Balance at December 31, 2013 | $ | 5,000 | $ | 534 | $ | 5,534 | ||||||||||
Restructuring charges | 15,907 | 5,036 | 20,943 | |||||||||||||
Payments | (5,220 | ) | (529 | ) | (5,749 | ) | ||||||||||
Other, including foreign currency | 767 | 11 | 778 | |||||||||||||
Balance at June 30, 2014 | $ | 16,454 | $ | 5,052 | $ | 21,506 | ||||||||||
Schedule of Restructuring Reserve by Balance Sheet Location | ' | |||||||||||||||
The severance and restructuring accruals are recorded in the following accounts on the Consolidated Balance Sheet: | ||||||||||||||||
30-Jun-14 | 31-Dec-13 | |||||||||||||||
Other accrued expenses | 19,669 | $ | 5,534 | |||||||||||||
Other liabilities (1) | 1,837 | — | ||||||||||||||
Total | $ | 21,506 | $ | 5,534 | ||||||||||||
(1) This represents the long-term portion of the charges associated with lease obligations, net of reasonably obtainable sublease income. |
Borrowings_Tables
Borrowings (Tables) | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Debt Disclosure [Abstract] | ' | |||||||||||||||
Schedule of Long-term Debt Instruments | ' | |||||||||||||||
Borrowings at June 30, 2014 consist of the following: | ||||||||||||||||
June 30, 2014 | ||||||||||||||||
Term Loan | $ | 300,000 | ||||||||||||||
Revolving Credit Facility | 100,000 | |||||||||||||||
Total | 400,000 | |||||||||||||||
Less: current maturities | 7,500 | |||||||||||||||
Total long-term debt | $ | 392,500 | ||||||||||||||
Schedule of Interest expense and interest income | ' | |||||||||||||||
Interest expense and interest income for the three and six months ended June 30, 2014 and 2013 were as follows: | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Interest expense | $ | 1,832 | $ | 13,107 | $ | 2,515 | $ | 26,129 | ||||||||
Interest income | (12 | ) | (1,038 | ) | (23 | ) | (2,112 | ) | ||||||||
Interest expense, net | $ | 1,820 | $ | 12,069 | $ | 2,492 | $ | 24,017 | ||||||||
Other_Comprehensive_Earnings_T
Other Comprehensive Earnings (Tables) | 6 Months Ended | |||||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||||
Other Comprehensive Income (Loss), Net of Tax [Abstract] | ' | |||||||||||||||||||||||
Components of other comprehensive (loss) earnings | ' | |||||||||||||||||||||||
The amounts recognized in other comprehensive (loss) earnings were as follows: | ||||||||||||||||||||||||
Three Months Ended | Three Months Ended | |||||||||||||||||||||||
30-Jun-14 | 30-Jun-13 | |||||||||||||||||||||||
Pre-tax | Tax | Net of tax | Pre-tax | Tax | Net of tax | |||||||||||||||||||
Foreign currency translation | $ | (9,239 | ) | $ | (9,239 | ) | $ | 9,222 | $ | 9,222 | ||||||||||||||
Employee benefit plans | 215 | (75 | ) | 140 | 127 | (31 | ) | 96 | ||||||||||||||||
Changes in fair value of cash flow hedges | — | — | — | (192 | ) | 67 | (125 | ) | ||||||||||||||||
Total other comprehensive (loss) earnings | $ | (9,024 | ) | $ | (75 | ) | $ | (9,099 | ) | $ | 9,157 | $ | 36 | $ | 9,193 | |||||||||
Six Months Ended | Six Months Ended | |||||||||||||||||||||||
30-Jun-14 | 30-Jun-13 | |||||||||||||||||||||||
Pre-tax | Tax | Net of tax | Pre-tax | Tax | Net of tax | |||||||||||||||||||
Foreign currency translation | $ | (10,889 | ) | $ | (10,889 | ) | $ | (9,917 | ) | $ | (9,917 | ) | ||||||||||||
Employee benefit plans | 38 | (13 | ) | 25 | 127 | (31 | ) | 96 | ||||||||||||||||
Changes in fair value of cash flow hedges | — | — | — | (410 | ) | 143 | (267 | ) | ||||||||||||||||
Total other comprehensive loss | $ | (10,851 | ) | $ | (13 | ) | $ | (10,864 | ) | $ | (10,200 | ) | $ | 112 | $ | (10,088 | ) | |||||||
Schedule of (Loss) Earnings | ' | |||||||||||||||||||||||
The following tables summarize the changes in balances of each component of accumulated other comprehensive earnings (loss), net of tax during the six months ended June 30, 2014 and 2013. | ||||||||||||||||||||||||
Cumulative foreign currency translation adjustments | Employee benefit plans | Total | ||||||||||||||||||||||
Balance at December 31, 2013 | $ | 44,379 | $ | (7,854 | ) | $ | 36,525 | |||||||||||||||||
Other comprehensive loss | (10,889 | ) | 25 | (10,864 | ) | |||||||||||||||||||
Separation-related adjustments | (7,204 | ) | (335 | ) | (7,539 | ) | ||||||||||||||||||
Balance at June 30, 2014 | $ | 26,286 | $ | (8,164 | ) | $ | 18,122 | |||||||||||||||||
Cash flow hedges | Cumulative foreign currency translation adjustments | Employee benefit plans | Total | |||||||||||||||||||||
Balance at December 31, 2012 | $ | — | $ | 11,784 | $ | (8,019 | ) | $ | 3,765 | |||||||||||||||
Other comprehensive loss | (267 | ) | (9,917 | ) | 96 | (10,088 | ) | |||||||||||||||||
Balance at June 30, 2013 | $ | (267 | ) | $ | 1,867 | $ | (7,923 | ) | $ | (6,323 | ) | |||||||||||||
Equity_Incentive_Program_Table
Equity Incentive Program (Tables) | 6 Months Ended | |||||||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||||||
Share-based Compensation [Abstract] | ' | |||||||||||||||||||||||||
Schedule of Black-Scholes Option-Pricing Assumptions | ' | |||||||||||||||||||||||||
The expense related to stock options granted in the six months ended June 30, 2014, was estimated on the date of grant using a Black-Scholes option-pricing model based on the assumptions shown in the table below. There were no stock options granted in the three months ended June 30, 2014. | ||||||||||||||||||||||||||
Risk-free interest rate | 1.32 | % | to | 1.63% | ||||||||||||||||||||||
Dividend yield | —% | |||||||||||||||||||||||||
Expected life (years) | 4.5 | to | 5.3 | |||||||||||||||||||||||
Volatility | 44.4 | % | to | 49.90% | ||||||||||||||||||||||
Fair value at date of grant | $11.25 | to | $13.50 | |||||||||||||||||||||||
Schedule of SSAR and Stock Options Activity | ' | |||||||||||||||||||||||||
The following table summarizes the Company's SSAR and stock option activity for the six months ended June 30, 2014. | ||||||||||||||||||||||||||
SSARs | Stock Options | |||||||||||||||||||||||||
Number of Shares | Weighted-Average Exercise Price | Aggregate Intrinsic Value | Weighted-Average Remaining Contractual Term (Years) | Number of Shares | Weighted-Average Exercise Price | Aggregate Intrinsic Value | Weighted-Average Remaining Contractual Term (Years) | |||||||||||||||||||
Outstanding at December 31, 2013 | — | $ | — | — | $ | — | ||||||||||||||||||||
Converted | 1,085,643 | 20.85 | 13,680 | 12.65 | ||||||||||||||||||||||
Granted | — | — | 1,291,995 | 29.53 | ||||||||||||||||||||||
Exercised | — | — | (11,280 | ) | 12.65 | |||||||||||||||||||||
Forfeited | — | — | (4,000 | ) | 29.53 | |||||||||||||||||||||
Outstanding at June 30, 2014 | 1,085,643 | $ | 20.85 | $ | 10,742 | 7.3 | 1,290,395 | $ | 29.5 | $ | 1,602 | 6.7 | ||||||||||||||
Exercisable at June 30, 2014 | 393,527 | $ | 17.33 | $ | 5,277 | 5.7 | 2,400 | $ | 12.65 | $ | 43 | 0.6 | ||||||||||||||
Schedule of Restricted Stock Units Award Activity | ' | |||||||||||||||||||||||||
The following table summarizes the Company's RSU balances for the six months ended June 30, 2014. | ||||||||||||||||||||||||||
Share units | Weighted-average grant date fair value | |||||||||||||||||||||||||
Outstanding at December 31, 2013 | — | $ | — | |||||||||||||||||||||||
Converted (1) | 21,557 | 12.36 | ||||||||||||||||||||||||
Granted | 361,674 | 29.53 | ||||||||||||||||||||||||
Forfeited | (1,016 | ) | 29.53 | |||||||||||||||||||||||
Outstanding at June 30, 2014 | 382,215 | $ | 28.56 | |||||||||||||||||||||||
(1) The weighted-average grant date fair value is equal to the fair value at the date of conversion as opposed to the fair value when originally issued under Dover's plan. |
Earnings_per_Share_Tables
Earnings per Share (Tables) | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||
Reconciliation of information used in computing basic and diluted earnings per share | ' | |||||||||||||||
The following table sets forth a reconciliation of the information used in computing basic and diluted shares outstanding and amounts used in computing the respective earnings per share: | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Net (loss) earnings | $ | (78,903 | ) | $ | 16,671 | $ | (71,258 | ) | $ | 28,566 | ||||||
Basic (loss) earnings per common share: | ||||||||||||||||
Basic weighted-average shares outstanding (1) | 85,042,334 | 85,019,159 | 85,033,149 | 85,019,159 | ||||||||||||
Basic (loss) earnings per share (1) | $ | (0.93 | ) | $ | 0.2 | $ | (0.84 | ) | $ | 0.34 | ||||||
Diluted (loss) earnings per common share: | ||||||||||||||||
Basic weighted-average shares outstanding (1) | 85,042,334 | 85,019,159 | 85,033,149 | 85,019,159 | ||||||||||||
Dilutive effect of stock-based awards | — | — | — | — | ||||||||||||
Diluted weighted-average shares outstanding (1) | 85,042,334 | 85,019,159 | 85,033,149 | 85,019,159 | ||||||||||||
Diluted (loss) earnings per share (1) | $ | (0.93 | ) | $ | 0.2 | $ | (0.84 | ) | $ | 0.34 | ||||||
(1) On February 28, 2014, Dover shareholders of record as of the close of business on February 19, 2014 received one share of Knowles common stock for every two shares of Dover's common stock held as of the record date. The computation of basic and diluted earnings per common share for all periods through December 31, 2013 was calculated using the shares distributed on February 28, 2014. |
Segment_Information_Tables
Segment Information (Tables) | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||
Revenue and Earnings from continuing operations by market segment | ' | |||||||||||||||
Information regarding the Company's reportable segments is as follows: | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Revenue: | ||||||||||||||||
Mobile Consumer Electronics | $ | 166,743 | $ | 189,655 | $ | 330,733 | $ | 359,426 | ||||||||
Specialty Components | 114,300 | 107,063 | 223,706 | 213,427 | ||||||||||||
Intra-segment eliminations | (10 | ) | (9 | ) | (21 | ) | (26 | ) | ||||||||
Total consolidated revenue | $ | 281,033 | $ | 296,709 | $ | 554,418 | $ | 572,827 | ||||||||
(Loss) earnings before interest and income taxes: (1) | ||||||||||||||||
Mobile Consumer Electronics | $ | (47,535 | ) | $ | 26,993 | $ | (40,683 | ) | $ | 47,389 | ||||||
Specialty Components | 14,832 | 11,748 | 30,532 | 26,538 | ||||||||||||
Total segments | (32,703 | ) | 38,741 | (10,151 | ) | 73,927 | ||||||||||
Corporate expense / other | 11,283 | 10,836 | 23,018 | 21,970 | ||||||||||||
Interest expense, net | 1,820 | 12,069 | 2,492 | 24,017 | ||||||||||||
(Loss) earnings before income taxes | (45,806 | ) | 15,836 | (35,661 | ) | 27,940 | ||||||||||
Provision for (benefit from) income taxes | 33,097 | (835 | ) | 35,597 | (626 | ) | ||||||||||
Net (loss) earnings | $ | (78,903 | ) | $ | 16,671 | $ | (71,258 | ) | $ | 28,566 | ||||||
(1) During the first quarter of 2014, the Company began using earnings before interest and income taxes as the measure to make decisions about allocating resources to segments and assessing segment performance instead of earnings before interest, income taxes, depreciation and amortization. |
Basis_of_Presentation_Details
Basis of Presentation (Details) (USD $) | 6 Months Ended | 3 Months Ended | |||||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Jun. 30, 2014 | Jun. 30, 2014 |
Incentive Compensation Accrual, Before Tax | Incentive Compensation Accrual, After Tax | Tax Expense Due on Royalty Income | Severance Accrual, Before Tax | Severance Accrual, After Tax | |||
Change in Accounting Estimate [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Changes in estimate | ' | ' | ($1,420) | ($923) | $1,100 | $2,105 | $1,579 |
Allocated expenses | 3,368 | 11,965 | ' | ' | ' | ' | ' |
Prior Period Reclassification Adjustment | ' | -16,673 | ' | ' | ' | ' | ' |
Noncash Investing and Financing Items [Abstract] | ' | ' | ' | ' | ' | ' | ' |
Purchases of property and equipment included in accounts payable | 16,919 | 6,877 | ' | ' | ' | ' | ' |
Noncash capitalized patent defense costs | $7,123 | $781 | ' | ' | ' | ' | ' |
Basis_of_Presentation_Related_
Basis of Presentation Related Party Transactions (Details) (Dover, USD $) | 6 Months Ended |
In Thousands, unless otherwise specified | Jun. 30, 2014 |
Dover | ' |
Related Party Transaction [Line Items] | ' |
Cash Paid to Parent Company prior to Separation | $400,000 |
Accounts payable, former parent | $1,685 |
Inventories_Details
Inventories (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Inventory, Net [Abstract] | ' | ' |
Raw materials | $63,153 | $55,870 |
Work in progress | 32,585 | 29,886 |
Finished goods | 95,773 | 92,048 |
Subtotal | 191,511 | 177,804 |
Less reserves | -35,653 | -28,636 |
Total | $155,858 | $149,168 |
Property_Plant_and_Equipment_D
Property, Plant and Equipment (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ' | ' |
Cost | $769,542 | $776,439 |
Accumulated depreciation | -433,872 | -415,442 |
Total | 335,670 | 360,997 |
Land | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Cost | 12,365 | 12,238 |
Buildings and improvements | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Cost | 104,615 | 85,815 |
Machinery, equipment and other | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Cost | $652,562 | $678,386 |
Goodwill_and_Other_Intangible_2
Goodwill and Other Intangible Assets - Goodwill (Details) (USD $) | 6 Months Ended |
In Thousands, unless otherwise specified | Jun. 30, 2014 |
Goodwill [Roll Forward] | ' |
Beginning balance | $961,916 |
Foreign currency translation | -3,765 |
Ending balance | 958,151 |
Mobile Consumer Electronics | ' |
Goodwill [Roll Forward] | ' |
Beginning balance | 776,349 |
Foreign currency translation | -3,497 |
Ending balance | 772,852 |
Specialty Components | ' |
Goodwill [Roll Forward] | ' |
Beginning balance | 185,567 |
Foreign currency translation | -268 |
Ending balance | $185,299 |
Goodwill_and_Other_Intangible_3
Goodwill and Other Intangible Assets - Intangible Assets and Amortization Expense (Details) (USD $) | 3 Months Ended | 6 Months Ended | |||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' | ' |
Gross Carrying Amount | $549,974 | ' | $549,974 | ' | $552,557 |
Accumulated Amortization | 276,476 | ' | 276,476 | ' | 266,247 |
Intangible assets, net | 305,498 | ' | 305,498 | ' | 318,310 |
Amortization expense | 10,826 | 12,271 | 21,537 | 23,984 | ' |
Trademarks | ' | ' | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' | ' |
Gross Carrying Amount | 8,158 | ' | 8,158 | ' | 8,264 |
Accumulated Amortization | 1,752 | ' | 1,752 | ' | 1,503 |
Patents | ' | ' | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' | ' |
Gross Carrying Amount | 48,688 | ' | 48,688 | ' | 47,543 |
Accumulated Amortization | 9,646 | ' | 9,646 | ' | 17,549 |
Customer Relationships | ' | ' | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' | ' |
Gross Carrying Amount | 425,822 | ' | 425,822 | ' | 429,429 |
Accumulated Amortization | 198,745 | ' | 198,745 | ' | 181,232 |
Unpatented Technologies | ' | ' | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' | ' |
Gross Carrying Amount | 65,742 | ' | 65,742 | ' | 65,757 |
Accumulated Amortization | 64,857 | ' | 64,857 | ' | 64,574 |
Other | ' | ' | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' | ' |
Gross Carrying Amount | 1,564 | ' | 1,564 | ' | 1,564 |
Accumulated Amortization | $1,476 | ' | $1,476 | ' | $1,389 |
Goodwill_and_Other_Intangible_4
Goodwill and Other Intangible Assets Goodwill and Other Intangible Assets - Indefinite-Lived Intangible Assets (Details) (Trademarks, USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Trademarks | ' | ' |
Unamortized intangible assets: | ' | ' |
Gross Carrying Amount | $32,000 | $32,000 |
Restructuring_and_Related_Acti1
Restructuring and Related Activities Costs Recognized and Remaining Costs (Details) (USD $) | 6 Months Ended |
In Thousands, unless otherwise specified | Jun. 30, 2014 |
Restructuring Cost and Reserve [Line Items] | ' |
Recognized as of June 30, 2014 | $20,943 |
Severance Pay and Benefits | ' |
Restructuring Cost and Reserve [Line Items] | ' |
Recognized as of June 30, 2014 | 15,907 |
Contract Termination and Other Costs | ' |
Restructuring Cost and Reserve [Line Items] | ' |
Recognized as of June 30, 2014 | 5,036 |
Vienna Action | ' |
Restructuring Cost and Reserve [Line Items] | ' |
Total Program | 21,405 |
Recognized as of June 30, 2014 | 17,070 |
Remaining Costs to be Recognized | 4,335 |
Vienna Action | Minimum | ' |
Restructuring Cost and Reserve [Line Items] | ' |
Anticipated annual savings | 25,000 |
Vienna Action | Maximum | ' |
Restructuring Cost and Reserve [Line Items] | ' |
Anticipated annual savings | 30,000 |
Vienna Action | Cost of Goods Sold, Restructuring Charges | ' |
Restructuring Cost and Reserve [Line Items] | ' |
Recognized as of June 30, 2014 | 12,506 |
Vienna Action | Restructuring Charges | ' |
Restructuring Cost and Reserve [Line Items] | ' |
Recognized as of June 30, 2014 | 4,564 |
Vienna Action | Cost of Goods Sold | ' |
Restructuring Cost and Reserve [Line Items] | ' |
Accelerated depreciation and inventory charges | 20,360 |
Vienna Action | Severance Pay and Benefits | ' |
Restructuring Cost and Reserve [Line Items] | ' |
Total Program | 15,883 |
Recognized as of June 30, 2014 | 12,555 |
Remaining Costs to be Recognized | 3,328 |
Vienna Action | Contract Termination and Other Costs | ' |
Restructuring Cost and Reserve [Line Items] | ' |
Total Program | 5,522 |
Recognized as of June 30, 2014 | 4,515 |
Remaining Costs to be Recognized | $1,007 |
Restructuring_Activities_Detai
Restructuring Activities (Details) (USD $) | 3 Months Ended | 6 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | |||||||||||||||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | ||
Other accrued expenses | Other accrued expenses | Other liabilities | Other liabilities | Severance Pay and Benefits | Contract Termination and Other Costs | Severance Pay and Contract Termination and Other Costs | Severance Pay and Contract Termination and Other Costs | Severance Pay and Contract Termination and Other Costs | Severance Pay and Contract Termination and Other Costs | Severance Pay and Contract Termination and Other Costs | Severance Pay and Contract Termination and Other Costs | Severance Pay and Contract Termination and Other Costs | Severance Pay and Contract Termination and Other Costs | Severance Pay and Contract Termination and Other Costs | Severance Pay and Contract Termination and Other Costs | Severance Pay and Contract Termination and Other Costs | Severance Pay and Contract Termination and Other Costs | |||||||
Mobile Consumer Electronics | Mobile Consumer Electronics | Mobile Consumer Electronics | Mobile Consumer Electronics | Specialty Components | Specialty Components | Specialty Components | Specialty Components | |||||||||||||||||
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Restructuring charges | $4,283 | $5,476 | $4,526 | $6,968 | ' | ' | ' | ' | ' | ' | $20,700 | $9,517 | $20,943 | $12,832 | $18,111 | $4,718 | $18,111 | $6,916 | $2,589 | $4,799 | $2,832 | $5,916 | ||
Restructuring Reserve [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Severance and other restructuring reserve, beginning balance | ' | ' | 5,534 | ' | 19,669 | 5,534 | 1,837 | [1] | 0 | [1] | 5,000 | 534 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring charges | ' | ' | 20,943 | ' | ' | ' | ' | ' | 15,907 | 5,036 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Payments | ' | ' | -5,749 | ' | ' | ' | ' | ' | -5,220 | -529 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Other, including foreign currency | ' | ' | 778 | ' | ' | ' | ' | ' | 767 | 11 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Severance and other restructuring reserve, ending balance | $21,506 | ' | $21,506 | ' | $19,669 | $5,534 | $1,837 | [1] | $0 | [1] | $16,454 | $5,052 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
[1] | This represents the long-term portion of the charges associated with lease obligations, net of reasonably obtainable sublease income. |
Restructuring_and_Related_Acti2
Restructuring and Related Activities Balance Sheet Location (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Restructuring Cost and Reserve [Line Items] | ' | ' | ||
Severance and restructuring accrual | $21,506 | $5,534 | ||
Other accrued expenses | ' | ' | ||
Restructuring Cost and Reserve [Line Items] | ' | ' | ||
Severance and restructuring accrual | 19,669 | 5,534 | ||
Other liabilities | ' | ' | ||
Restructuring Cost and Reserve [Line Items] | ' | ' | ||
Severance and restructuring accrual | $1,837 | [1] | $0 | [1] |
[1] | This represents the long-term portion of the charges associated with lease obligations, net of reasonably obtainable sublease income. |
Borrowings_Details
Borrowings (Details) (USD $) | 3 Months Ended | 6 Months Ended | 0 Months Ended | 0 Months Ended | 6 Months Ended | 6 Months Ended | |||||||||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Jan. 27, 2014 | Jun. 30, 2014 | Jan. 27, 2014 | Jan. 27, 2014 | Jun. 30, 2014 | Jan. 27, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | |
Line of Credit | Line of Credit | Line of Credit | Senior Notes | Senior Notes | Senior Notes | Credit Facilities | Credit Facilities | Credit Facilities | Credit Facilities | ||||||
Revolving Credit Facility | Revolving Credit Facility | Revolving Credit Facility | Senior Secured Note Issued January 2014 | Senior Secured Note Issued January 2014 | Senior Secured Note Issued January 2014 | LIBOR | LIBOR | LIBOR | |||||||
Minimum | Maximum | ||||||||||||||
Long-term borrowings [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Secured revolving credit facility, maximum borrowing capacity | ' | ' | ' | ' | ' | ' | ' | $200,000,000 | ' | ' | ' | ' | ' | ' | ' |
Debt term | ' | ' | ' | ' | ' | '5 years | ' | ' | '5 years | ' | ' | ' | ' | ' | ' |
Senior secured term loan facility | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 300,000,000 | ' | ' | ' | ' |
Line of credit facility, amount outstanding | ' | ' | ' | ' | ' | ' | 100,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term debt | 400,000,000 | ' | 400,000,000 | ' | ' | ' | 100,000,000 | ' | ' | 300,000,000 | ' | ' | ' | ' | ' |
Less: current maturities | 7,500,000 | ' | 7,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term debt (noncurrent) | 392,500,000 | ' | 392,500,000 | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt covenant, EBITDA to interest ratio | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.25 | ' | ' | ' |
Debt covenant, debt to EBITDA | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.25 | ' | ' | ' |
Basis spread on variable rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.25% | 2.25% |
Interest rate at period end | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.65% | ' | ' |
Interest expense | 1,832,000 | 13,107,000 | 2,515,000 | 26,129,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest income | -12,000 | -1,038,000 | -23,000 | -2,112,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest expense, net | $1,820,000 | $12,069,000 | $2,492,000 | $24,017,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other_Comprehensive_Earnings_D
Other Comprehensive Earnings (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Foreign currency translation adjustments [Abstract] | ' | ' | ' | ' |
Foreign currency translation, before tax | ($9,239) | $9,222 | ($10,889) | ($9,917) |
Foreign currency translation, net of tax | -9,239 | 9,222 | -10,889 | -9,917 |
Employee benefit plans: | ' | ' | ' | ' |
Employee benefit plans, before Tax | 215 | 127 | 38 | 127 |
Employee benefit plans, Tax | -75 | -31 | -13 | -31 |
Total employee benefit plans | 140 | 96 | 25 | 96 |
Changes in fair value of cash flow hedges: | ' | ' | ' | ' |
Change in fair value of cash flow hedges, before tax | 0 | -192 | 0 | -410 |
Change in fair value of cash flow hedges, tax | 0 | 67 | 0 | 143 |
Total cash flow hedges | 0 | -125 | 0 | -267 |
Total other comprehensive earnings [Abstract] | ' | ' | ' | ' |
Other Comprehensive Income (Loss), before tax | -9,024 | 9,157 | -10,851 | -10,200 |
Other Comprehensive Income (Loss), tax | -75 | 36 | -13 | 112 |
Other comprehensive (loss) earnings, net of tax | -9,099 | 9,193 | -10,864 | -10,088 |
Cash flow hedges | ' | ' | ' | ' |
Total other comprehensive earnings [Abstract] | ' | ' | ' | ' |
Other comprehensive (loss) earnings, net of tax | ' | ' | ' | -267 |
Cumulative foreign currency translation adjustments | ' | ' | ' | ' |
Foreign currency translation adjustments [Abstract] | ' | ' | ' | ' |
Foreign currency translation, net of tax | ' | ' | -10,889 | -9,917 |
Total other comprehensive earnings [Abstract] | ' | ' | ' | ' |
Other comprehensive (loss) earnings, net of tax | ' | ' | -10,889 | -9,917 |
Employee benefit plans | ' | ' | ' | ' |
Total other comprehensive earnings [Abstract] | ' | ' | ' | ' |
Other comprehensive (loss) earnings, net of tax | ' | ' | $25 | $96 |
Other_Comprehensive_Loss_Earni1
Other Comprehensive (Loss) Earnings Changes in Balances of Each Component of Accumulated Other Comprehensive Earnings (Loss) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ' | ' | ' | ' |
Beginning balance | ' | ' | $36,525 | $3,765 |
Other comprehensive loss | -9,099 | 9,193 | -10,864 | -10,088 |
Separation-related adjustments | ' | ' | -19,333 | ' |
Ending balance | 18,122 | -6,323 | 18,122 | -6,323 |
Cash flow hedges | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ' | ' | ' | ' |
Beginning balance | ' | ' | ' | 0 |
Other comprehensive loss | ' | ' | ' | -267 |
Ending balance | ' | -267 | ' | -267 |
Cumulative foreign currency translation adjustments | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ' | ' | ' | ' |
Beginning balance | ' | ' | 44,379 | 11,784 |
Other comprehensive loss | ' | ' | -10,889 | -9,917 |
Separation-related adjustments | ' | ' | -7,204 | ' |
Ending balance | 26,286 | 1,867 | 26,286 | 1,867 |
Employee benefit plans | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ' | ' | ' | ' |
Beginning balance | ' | ' | -7,854 | -8,019 |
Other comprehensive loss | ' | ' | 25 | 96 |
Separation-related adjustments | ' | ' | -335 | ' |
Ending balance | -8,164 | -7,923 | -8,164 | -7,923 |
Accumulated Other Comprehensive Earnings | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ' | ' | ' | ' |
Separation-related adjustments | ' | ' | ($7,539) | ' |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Income Tax Holiday [Line Items] | ' | ' | ' | ' |
Effective tax rate | -72.30% | -5.30% | -99.80% | -2.20% |
Effective income tax rate reconciliation, discrete items | $32,716 | ' | $35,708 | ' |
Valuation allowance | 36,793 | ' | ' | ' |
Pre-discrete tax rate | -0.80% | -2.80% | 0.30% | -2.80% |
Increase in deferred tax liability | ' | ' | 10,066 | ' |
Foreign Tax Authority | ' | ' | ' | ' |
Income Tax Holiday [Line Items] | ' | ' | ' | ' |
Effective income tax rate reconciliation, tax holiday | $4,352 | ' | ' | ' |
Holiday benefit (usd per share) | $0.06 | ' | $0.06 | ' |
Equity_Incentive_Program_Stock
Equity Incentive Program - Stock Options and SSARs (Details) (USD $) | 6 Months Ended |
In Thousands, except Share data, unless otherwise specified | Jun. 30, 2014 |
SSARs | ' |
SSARs, Number of Shares | ' |
Beginning balance | 0 |
Converted | 1,085,643 |
Granted | 0 |
Ending balance | 1,085,643 |
Exercisable | 393,527 |
SSARs, Weighted-average grant date fair value | ' |
Beginning balance | $0 |
Converted | $20.85 |
Granted | $0 |
Ending balance | $20.85 |
Exercisable | $17.33 |
SARS and Options, Additional Disclosures | ' |
SSARs, aggregate intrinsic value, outstanding | $10,742 |
SSARs, aggregate intrinsic value, exercisable | 5,277 |
SSARs, weighted average remaining contractual terms, outstanding | '7 years 4 months |
SSARs, weighted average remaining contractual term, exercisable | '5 years 8 months |
Stock Options | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ' |
Dividend yield | 0.00% |
Stock Options, Number of Shares | ' |
Beginning balance | 0 |
Converted | 13,680 |
Granted | 1,291,995 |
Exercised | -11,280 |
Forfeited | -4,000 |
Ending balance | 1,290,395 |
Exercisable | 2,400 |
Stock Options, Weighted Average Exercise Price | ' |
Beginning balance | $0 |
Converted | $12.65 |
Granted | $29.53 |
Exercised | $12.65 |
Forfeited | $29.53 |
Ending balance | $29.50 |
Exercisable | $12.65 |
SARS and Options, Additional Disclosures | ' |
Options, aggregate intrinsic value, outstanding | 1,602 |
Options, aggregate intrinsic value, exercisable | $43 |
Options, weighted average remaining contractual term, outstanding | '6 years 8 months |
Options, weighted average remaining contractual term, exercisable | '0 years 7 months |
Minimum | Stock Options | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ' |
Risk-free interest rate | 1.32% |
Expected life (years) | '4 years 6 months |
Volatility | 44.40% |
Fair value at date of grant | $11.25 |
Maximum | Stock Options | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ' |
Risk-free interest rate | 1.63% |
Expected life (years) | '5 years 3 months |
Volatility | 49.90% |
Fair value at date of grant | $13.50 |
Equity_Incentive_Program_RSUs_
Equity Incentive Program - RSUs (Details) (Restricted Stock Units (RSUs), USD $) | 6 Months Ended | |
Jun. 30, 2014 | ||
Restricted Stock Units (RSUs) | ' | |
Number of Shares [Roll Forward] | ' | |
Beginning balance | 0 | |
Converted | 21,557 | [1] |
Granted | 361,674 | |
Forfeited | -1,016 | |
Ending balance | 382,215 | |
Weighted Average Grant Date Fair Value | ' | |
Beginning balance | $0 | |
Converted | $12.36 | [1] |
Granted | $29.53 | |
Forfeited | $29.53 | |
Ending balance | $28.56 | |
[1] | The weighted-average grant date fair value is equal to the fair value at the date of conversion as opposed to the fair value when originally issued under Dover's plan. |
Equity_Incentive_Program_Addit
Equity Incentive Program - Additional Information (Details) (USD $) | 3 Months Ended | 6 Months Ended | 0 Months Ended | ||||||
In Thousands, except Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Mar. 07, 2014 | Mar. 07, 2014 |
SSARs | Stock Options | Restricted Stock Units (RSUs) | Director | Director | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock-based compensation | $2,417 | $564 | $3,903 | $1,129 | ' | ' | ' | ' | ' |
Vesting percentage | ' | ' | 50.00% | ' | ' | ' | ' | ' | ' |
Vesting period | ' | ' | '3 years | ' | ' | ' | ' | ' | ' |
Unrecognized compensation expense | ' | ' | ' | ' | $1,720 | $14,614 | $9,954 | ' | ' |
Weighted average period for compensation expense to be recognized | ' | ' | ' | ' | '1 year 5 months | '2 years 6 months | '2 years 5 months | ' | ' |
Shares granted (in shares) | ' | ' | ' | ' | ' | ' | ' | 16,930 | ' |
Grant date fair value (usd per share) | ' | ' | ' | ' | ' | ' | ' | ' | $29.53 |
Earnings_per_Share_Details
Earnings per Share (Details) (USD $) | 0 Months Ended | 3 Months Ended | 6 Months Ended | ||||||
In Thousands, except Share data, unless otherwise specified | Feb. 28, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | ||||
Reconciliation of information used in computing basic and diluted earnings per share [Abstract] | ' | ' | ' | ' | ' | ||||
Net (loss) earnings | ' | ($78,903) | $16,671 | ($71,258) | $28,566 | ||||
Basic (loss) earnings per common share: | ' | ' | ' | ' | ' | ||||
Basic weighted average shares outstanding (in shares) | ' | 85,042,334 | [1] | 85,019,159 | [1] | 85,033,149 | [1] | 85,019,159 | [1] |
Basic (loss) earnings per share (usd per share) | ' | ($0.93) | [1] | $0.20 | [1] | ($0.84) | [1] | $0.34 | [1] |
Diluted earnings (loss) per common share: | ' | ' | ' | ' | ' | ||||
Basic weighted average shares outstanding (in shares) | ' | 85,042,334 | [1] | 85,019,159 | [1] | 85,033,149 | [1] | 85,019,159 | [1] |
Dilutive effect of stock-based awards (in shares) | ' | 0 | 0 | 0 | 0 | ||||
Dilutive weighted average shares outstanding (in shares) | ' | 85,042,334 | [1] | 85,019,159 | [1] | 85,033,149 | [1] | 85,019,159 | [1] |
Diluted (loss) earnings per share (usd per share) | ' | ($0.93) | [1] | $0.20 | [1] | ($0.84) | [1] | $0.34 | [1] |
Stock Issued During Period (in shares) | 0.5 | ' | ' | ' | ' | ||||
Weighted average number of anti-dilutive shares excluded from the calculation (in shares) | ' | 1,750,303 | ' | 1,124,110 | ' | ||||
[1] | On February 28, 2014, Dover shareholders of record as of the close of business on February 19, 2014 received one share of Knowles common stock for every two shares of Dover's common stock held as of the record date. The computation of basic and diluted earnings per common share for all periods through December 31, 2013 was calculated using the shares distributed on February 28, 2014. |
Segment_Information_Details
Segment Information (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||||||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | ||||
segments | ||||||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Number of reportable segments | ' | ' | 2 | ' | ||||
Reconciliation from Segment Totals to Consolidated [Abstract] | ' | ' | ' | ' | ||||
Revenues | $281,033 | $296,709 | $554,418 | $572,827 | ||||
Reconciliation of Net Earnings from Segments [Abstract] | ' | ' | ' | ' | ||||
Interest expense, net | 1,820 | 12,069 | 2,492 | 24,017 | ||||
(Loss) earnings before income taxes | -45,806 | 15,836 | -35,661 | 27,940 | ||||
Provision for (benefit from) income taxes | 33,097 | -835 | 35,597 | -626 | ||||
Net (loss) earnings | -78,903 | 16,671 | -71,258 | 28,566 | ||||
Mobile Consumer Electronics | ' | ' | ' | ' | ||||
Reconciliation from Segment Totals to Consolidated [Abstract] | ' | ' | ' | ' | ||||
Revenues | 166,743 | 189,655 | 330,733 | 359,426 | ||||
Reconciliation of Net Earnings from Segments [Abstract] | ' | ' | ' | ' | ||||
Earnings before interest and income taxes | -47,535 | [1] | 26,993 | [1] | -40,683 | [1] | 47,389 | [1] |
Specialty Components | ' | ' | ' | ' | ||||
Reconciliation from Segment Totals to Consolidated [Abstract] | ' | ' | ' | ' | ||||
Revenues | 114,300 | 107,063 | 223,706 | 213,427 | ||||
Reconciliation of Net Earnings from Segments [Abstract] | ' | ' | ' | ' | ||||
Earnings before interest and income taxes | 14,832 | [1] | 11,748 | [1] | 30,532 | [1] | 26,538 | [1] |
Intra-segment eliminations | ' | ' | ' | ' | ||||
Reconciliation from Segment Totals to Consolidated [Abstract] | ' | ' | ' | ' | ||||
Revenues | -10 | -9 | -21 | -26 | ||||
Total segments | ' | ' | ' | ' | ||||
Reconciliation of Net Earnings from Segments [Abstract] | ' | ' | ' | ' | ||||
Earnings before interest and income taxes | -32,703 | [1] | 38,741 | [1] | -10,151 | [1] | 73,927 | [1] |
Corporate expense / other | ' | ' | ' | ' | ||||
Reconciliation of Net Earnings from Segments [Abstract] | ' | ' | ' | ' | ||||
Earnings before interest and income taxes | ($11,283) | [1] | ($10,836) | [1] | ($23,018) | [1] | ($21,970) | [1] |
[1] | During the first quarter of 2014, the Company began using earnings before interest and income taxes as the measure to make decisions about allocating resources to segments and assessing segment performance instead of earnings before interest, income taxes, depreciation and amortization. |