Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended | |
Jun. 30, 2014 | Jul. 31, 2014 | |
Document And Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Jun-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q2 | ' |
Trading Symbol | 'CTB | ' |
Entity Registrant Name | 'COOPER TIRE & RUBBER CO | ' |
Entity Central Index Key | '0000024491 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 63,604,741 |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $326,636 | $397,731 |
Notes receivable | 83,241 | 86,965 |
Accounts receivable, less allowances of $16,996 at 2013 and $16,011 at 2014 | 496,933 | 360,405 |
Inventories at lower of cost or market: | ' | ' |
Finished goods | 463,327 | 360,686 |
Work in process | 42,759 | 35,576 |
Raw materials and supplies | 135,507 | 120,913 |
Inventories at lower of cost or market | 641,593 | 517,175 |
Other current assets | 86,994 | 92,514 |
Total current assets | 1,635,397 | 1,454,790 |
Property, plant and equipment: | ' | ' |
Land and land improvements | 51,396 | 51,186 |
Buildings | 327,951 | 326,635 |
Machinery and equipment | 1,885,942 | 1,847,576 |
Molds, cores and rings | 250,727 | 246,760 |
Total property, plant and equipment | 2,516,016 | 2,472,157 |
Less accumulated depreciation and amortization | 1,538,557 | 1,497,888 |
Net property, plant and equipment | 977,459 | 974,269 |
Goodwill | 18,851 | 18,851 |
Intangibles, net of accumulated amortization of $63,354 at 2013 and $69,048 2014 | 154,625 | 160,308 |
Restricted cash | 1,016 | 2,759 |
Deferred income taxes | 106,388 | 111,644 |
Other assets | 16,170 | 15,526 |
Total assets | 2,909,906 | 2,738,147 |
Current liabilities: | ' | ' |
Notes payable | 24,478 | 22,105 |
Accounts payable | 367,826 | 302,422 |
Accrued liabilities | 240,142 | 211,090 |
Income taxes | 10,568 | 11,098 |
Current portion of long-term debt | 15,671 | 17,868 |
Total current liabilities | 658,685 | 564,583 |
Long-term debt | 326,188 | 320,959 |
Postretirement benefits other than pensions | 239,257 | 238,653 |
Pension benefits | 277,586 | 291,808 |
Other long-term liabilities | 151,178 | 157,918 |
Deferred income tax liabilities | 6,341 | 6,601 |
Redeemable noncontrolling shareholder interest | 162,195 | ' |
Equity: | ' | ' |
Preferred stock, $1 par value; 5,000,000 shares authorized; none issued | 0 | 0 |
Common stock, $1 par value; 300,000,000 shares authorized; 87,850,292 shares issued | 87,850 | 87,850 |
Capital in excess of par value | 1,484 | 4,433 |
Retained earnings | 1,787,360 | 1,741,611 |
Cumulative other comprehensive loss | -401,569 | -410,020 |
Parent stockholders' equity before treasury stock | 1,475,125 | 1,423,874 |
Less: common shares in treasury at cost (24,464,264 at 2013 and 24,256,065 at 2014) | -428,825 | -433,008 |
Total parent stockholders' equity | 1,046,300 | 990,866 |
Noncontrolling shareholder interest in consolidated subsidiary | 42,176 | 166,759 |
Total equity | 1,088,476 | 1,157,625 |
Total liabilities and equity | $2,909,906 | $2,738,147 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Statement Of Financial Position [Abstract] | ' | ' |
Allowances for accounts receivable | $16,011 | $16,996 |
Accumulated amortization of intangibles | $69,048 | $63,354 |
Preferred stock, par value | $1 | $1 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value | $1 | $1 |
Common stock, shares authorized | 300,000,000 | 300,000,000 |
Common stock, shares issued | 87,850,292 | 87,850,292 |
Treasury stock, shares | 24,256,065 | 24,464,264 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) (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 Statement [Abstract] | ' | ' | ' | ' |
Net sales | $888,685 | $884,126 | $1,685,143 | $1,745,807 |
Cost of products sold | 740,816 | 733,966 | 1,389,932 | 1,437,729 |
Gross profit | 147,869 | 150,160 | 295,211 | 308,078 |
Selling, general and administrative | 71,280 | 80,994 | 137,711 | 142,248 |
Operating profit | 76,589 | 69,166 | 157,500 | 165,830 |
Interest expense | -6,792 | -7,231 | -13,910 | -14,332 |
Interest income | 270 | 141 | 783 | 437 |
Other - income (expense) | 477 | -834 | 466 | -239 |
Income before income taxes | 70,544 | 61,242 | 144,839 | 151,696 |
Income tax expense | 25,786 | 19,642 | 48,353 | 47,259 |
Net income | 44,758 | 41,600 | 96,486 | 104,437 |
Net income attributable to noncontrolling shareholders' interests | 6,576 | 6,114 | 12,870 | 12,871 |
Net income attributable to Cooper Tire & Rubber Company | $38,182 | $35,486 | $83,616 | $91,566 |
Basic earnings per share: | ' | ' | ' | ' |
Net income attributable to Cooper Tire & Rubber Company common stockholders | $0.60 | $0.56 | $1.32 | $1.45 |
Diluted earnings per share: | ' | ' | ' | ' |
Net income attributable to Cooper Tire & Rubber Company common stockholders | $0.59 | $0.55 | $1.30 | $1.43 |
Dividends per share | $0.11 | $0.11 | $0.21 | $0.21 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (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 Income And Comprehensive Income [Abstract] | ' | ' | ' | ' |
Net income | $44,758 | $41,600 | $96,486 | $104,437 |
Cumulative currency translation adjustments | ' | ' | ' | ' |
Foreign currency translation adjustments | 4,744 | 3,244 | 807 | -2,935 |
Financial instruments | ' | ' | ' | ' |
Change in the fair value of derivatives and marketable securities | -4,531 | 2,266 | -2,989 | 4,793 |
Income tax benefit (expense) on derivative instruments | 1,699 | -803 | 1,086 | -1,942 |
Financial instruments, net of tax | -2,832 | 1,463 | -1,903 | 2,851 |
Postretirement benefit plans | ' | ' | ' | ' |
Amortization of actuarial loss | 9,164 | 12,469 | 18,291 | 24,948 |
Amortization of prior service credit | -141 | -142 | -283 | -284 |
Income tax expense on postretirement benefit plans | -3,079 | -4,577 | -6,192 | -9,166 |
Foreign currency translation effect | -2,730 | -392 | -3,242 | 5,783 |
Postretirement benefit plans, net of tax | 3,214 | 7,358 | 8,574 | 21,281 |
Other comprehensive income | 5,126 | 12,065 | 7,478 | 21,197 |
Comprehensive income | 49,884 | 53,665 | 103,964 | 125,634 |
Less comprehensive income attributable to noncontrolling shareholders' interests | 6,783 | 6,062 | 11,897 | 14,622 |
Comprehensive income attributable to Cooper Tire & Rubber Company | $43,101 | $47,603 | $92,067 | $111,012 |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Operating activities: | ' | ' |
Net income | $96,486 | $104,437 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ' | ' |
Depreciation and amortization | 69,767 | 65,510 |
Deferred income taxes | 1,883 | 137 |
Stock based compensation | 3,612 | 4,461 |
Change in LIFO inventory reserve | -35,062 | -18,219 |
Amortization of unrecognized postretirement benefits | 18,008 | 24,664 |
Changes in operating assets and liabilities: | ' | ' |
Accounts and notes receivable | -134,799 | -67,586 |
Inventories | -89,116 | -74,142 |
Other current assets | -3,493 | -14,485 |
Accounts payable | 66,072 | -38,820 |
Accrued liabilities | 24,973 | 8,526 |
Other items | -8,410 | -8,454 |
Net cash provided by (used in) operating activities | 9,921 | -13,971 |
Investing activities: | ' | ' |
Additions to property, plant and equipment and capitalized software | -76,132 | -93,077 |
Proceeds from the sale of assets | 380 | 457 |
Net cash used in investing activities | -75,752 | -92,620 |
Financing activities: | ' | ' |
Net issuance of short-term debt | 3,003 | 14,186 |
Additions to long-term debt | 15,634 | 19,577 |
Repayments on long-term debt | -12,603 | -9,916 |
Payment of dividends to noncontrolling shareholders | -2,570 | -9,709 |
Payment of dividends to Cooper Tire & Rubber Company shareholders | -13,332 | -13,296 |
Issuance of common shares and excess tax benefits on options | 2,387 | 1,594 |
Net cash provided by (used in) financing activities | -7,481 | 2,436 |
Effects of exchange rate changes on cash | 2,217 | -3,509 |
Changes in cash and cash equivalents | -71,095 | -107,664 |
Cash and cash equivalents at beginning of year | 397,731 | 351,817 |
Cash and cash equivalents at end of period | $326,636 | $244,153 |
Basis_of_Presentation_and_Cons
Basis of Presentation and Consolidation | 6 Months Ended | |
Jun. 30, 2014 | ||
Accounting Policies [Abstract] | ' | |
Basis of Presentation and Consolidation | ' | |
1 | Basis of Presentation and Consolidation | |
The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. There is a year-round demand for the Company’s passenger and truck replacement tires, but sales of light vehicle replacement tires are generally strongest during the third and fourth quarters of the year. Winter tires are sold principally during the months of June through November. Operating results for the six-month period ended June 30, 2014 are not necessarily indicative of the results that may be expected for the year ended December 31, 2014. | ||
The Company consolidates into its financial statements the accounts of the Company, all wholly-owned subsidiaries, and any partially-owned subsidiary that the Company has the ability to control. Control generally equates to ownership percentage, whereby investments that are more than 50 percent owned are consolidated, investments in affiliates of 50 percent or less but greater than 20 percent are accounted for using the equity method, and investments in affiliates of 20 percent or less are accounted for using the cost method. The Company does not consolidate any entity for which it has a variable interest based solely on power to direct the activities and significant participation in the entity’s expected results that would not otherwise be consolidated based on control through voting interests. Further, the Company’s joint ventures are businesses established and maintained in connection with the Company’s operating strategy. All intercompany transactions and balances have been eliminated. | ||
Accounting Pronouncements | ||
Changes to accounting principles generally accepted in the United States of America (U.S. GAAP) are established by the Financial Accounting Standards Board (FASB) in the form of accounting standards updates (ASUs) to the FASB’s Accounting Standards Codification. | ||
The Company considers the applicability and impact of all ASUs. ASUs not listed below were assessed and determined to be either not applicable or are expected to have minimal impact on the Company’s consolidated financial statements. | ||
Accounting Pronouncements – Recently Adopted | ||
Income Taxes – In July 2013, the FASB issued ASU 2013-11, “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists,” which clarifies treatment of unrecognized tax benefits based on surrounding circumstances. The amendments in this update are effective for the annual and interim periods beginning on or after December 15, 2013. Although the Company does not expect the adoption of ASU 2013-11 to have a material effect on its consolidated financial statements, it will modify presentation of its unrecognized tax benefit if the specific circumstances are met. The adoption of this accounting standards update did not have an impact on the Company’s consolidated financial statements. | ||
Accounting Pronouncements – To be adopted | ||
Discontinued Operations – In April 2014, the FASB issued ASU 2014-08, “Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity,” which requires that a disposal representing a strategic shift that has or will have a major effect on an entity’s financial results or a business activity classified as held for sale should be reported as discontinued operations. The amendments also expand the disclosure requirements for discontinued operations and add new disclosures for individually significant dispositions that do not qualify as discontinued operations. The guidance is effective for the interim and annual periods beginning on or after December 15, 2014 with early adoption permitted only for disposals that have not been previously reported. The implementation of the amended guidance is not expected to have a material impact on the Company’s consolidated financial statements. | ||
Revenue Recognition – In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers,” which will supersede most current revenue recognition guidance, including industry-specific guidance. The core principle is that an entity will recognize revenue to depict the transfer of goods or services to customers in an amount that the entity expects to be entitled to in exchange for those goods or services. The guidance provides a five-step model to determine when and how revenue is recognized. Other major provisions include capitalization of certain contract costs, consideration of time value of money in the transaction price, and allowing estimates of variable consideration to be recognized before contingencies are resolved in certain circumstances. The guidance also requires enhanced disclosures regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from an entity’s contracts with customers. The guidance is effective for the interim and annual periods beginning on or after December 15, 2016 with early adoption not permitted. The guidance permits the use of either a retrospective or cumulative effect transition method. The Company has not yet selected a transition method and is currently evaluating the impact of the amended guidance on its consolidated financial statements and related disclosures. | ||
Stock-Based Compensation – In June 2014, the FASB issued ASU 2014-12 “Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period,” which requires that a performance target that affects vesting, and that could be achieved after the requisite service period, be treated as a performance condition. As such, the performance target should not be reflected in estimating the grant date fair value of the award. This update further clarifies that compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the periods for which the requisite service has already been rendered. The guidance is effective for the interim and annual periods beginning on or after December 15, 2015 and can be applied either prospectively or retrospectively to all awards outstanding as of the beginning of the earliest annual period presented as an adjustment to opening retained earnings. Early adoption is permitted. The Company is evaluating the impact, if any, of adopting this new accounting guidance on its consolidated financial statements. |
CCT_Agreement
CCT Agreement | 6 Months Ended | |
Jun. 30, 2014 | ||
Equity Method Investments And Joint Ventures [Abstract] | ' | |
CCT Agreement | ' | |
2 | CCT Agreement | |
On January 29, 2014, the Company entered into an agreement (the “CCT Agreement”) with Chengshan Group Company Ltd. (“Chengshan”) and The Union of Cooper Chengshan (Shandong) Tire Company Co., Ltd. (the “Union”) regarding Cooper Chengshan (Shandong) Tire Company Ltd. (“CCT”) that, among other matters, provides Chengshan, with certain conditions and exceptions, a limited contractual right to either (i) purchase the Company’s 65 percent equity interest in CCT for 65 percent of the Option Price (as defined below) or (ii) sell its 35 percent equity interest in CCT to the Company for 35 percent of the Option Price. In the event Chengshan elects not to exercise its right to purchase the Company’s equity interest or sell its interest in CCT to the Company, the Company has the right to purchase Chengshan’s 35 percent equity interest in CCT for 35 percent of the Option Price subject to certain conditions. In the event neither Chengshan nor the Company exercises their respective options prior to their expiration, the agreement allows for continuation of the joint venture as currently structured. | ||
The “Option Price” under the CCT Agreement is defined as the greater of (i) the fair market value of CCT on a stand-alone basis, which value will not take into consideration the value of the trademarks and technologies licensed by the Company to CCT, as determined by an internationally recognized valuation firm (the “CCT valuation”) and (ii) $435,000. | ||
Under the terms of the CCT Agreement, once the Option Price is determined, the noncontrolling shareholder has 45 days to either purchase the Company’s 65 percent ownership interest in CCT for 65 percent of the Option Price or sell to the Company its 35 percent ownership interest in CCT at 35 percent of the Option Price or do neither. If the noncontrolling shareholder does not exercise these options, the options shall expire and the Company shall have the right to purchase the noncontrolling shareholder’s 35 percent ownership interest in CCT at 35 percent of the Option Price. If the Company does not exercise this option within 90 days of the determination of the Option Price, the option shall lapse. If the CCT valuation is not provided on or before August 11, 2014, the above options of both parties will terminate and be of no effect unless the Company, at its sole discretion, elects to extend this deadline for the CCT valuation. | ||
The CCT Agreement is separate and in addition to the purchase, sale, transfer, right of first refusal and other protective rights set forth in the existing joint venture agreement between the Company and Chengshan with respect to CCT, which continues to be in effect and fully operational. | ||
The Company has determined the CCT Agreement constitutes an accounting extinguishment of the Chengshan Group’s equity interest in CCT. In accordance with Accounting Standard Codification (“ASC”) 810, “Consolidation”, changes in a parent’s interest while the parent retains its controlling financial interest in its subsidiary shall be accounted for as equity transactions. Therefore, gains and losses are not recorded in the Condensed Consolidated Statement of Income as a result of the CCT Agreement. The Company is required to measure the noncontrolling shareholder interest at fair value as of January 29, 2014, the transaction date (the “Transaction Date Assessment”). | ||
The measurement of the noncontrolling shareholder interest as of the transaction date is determined by assessing CCT as an ongoing component of the Company’s operations. The Transaction Date Assessment is not meant to be representative of the fair market value of CCT as a stand-alone entity as defined by the CCT Agreement. Further, the Transaction Date Assessment also considers specific discounts attributable to a noncontrolling shareholder interest, including discounts for lack of control of the entity and lack of marketability. Any adjustment to the noncontrolling shareholder interest as a result of the Transaction Date Assessment is offset by a reduction to Capital in excess of par value, to the extent available, with any remaining amount treated as a reduction in Retained earnings. | ||
In addition, because the CCT Agreement provides put and call options to the noncontrolling shareholder interest owner, these options should be measured at fair value (the “Options Assessment”). Adjustments to the carrying value of the noncontrolling shareholder interest as a result of the Options Assessment will be treated like a dividend to the noncontrolling shareholder interest owner. Any adjustment to the noncontrolling shareholder interest as a result of the Options Assessment is offset by a reduction to Retained earnings and reflected in the computation of earnings per share available to the Company’s common stockholders. | ||
Further, as a result of the CCT Agreement, during the term of its put option rights, the noncontrolling shareholder interest in CCT has redemption features that are not within the control of the Company. Accordingly, the noncontrolling shareholder interest in CCT is recorded outside of total equity. If the Transaction Date Assessment and Options Assessment result in a noncontrolling shareholder interest that is less than 35 percent of the minimum Option Price, ASC 480, “Distinguishing Liabilities from Equity”, requires that the noncontrolling shareholder interest be adjusted to 35 percent of the minimum Option Price. | ||
The Company’s Transaction Date Assessment, in accordance with the appropriate accounting guidance, resulted in an adjustment to the noncontrolling shareholder interest of $28,285, increasing the total noncontrolling shareholder interest to $152,250. The Options Assessment did not result in any further adjustment to the noncontrolling shareholder interest. The redeemable noncontrolling shareholder interest is classified outside of permanent equity on the Company’s Condensed Consolidated Balance Sheets, in accordance with the authoritative accounting guidance. | ||
Subsequent to the Transaction Date Assessment, in accordance with ASC 480, the carrying value of the redeemable noncontrolling shareholder interest is evaluated to determine if the redemption value as of the reporting date exceeds the carrying value. The Company reassessed the redemption value based upon the information known as of June 30, 2014. Based upon the Company’s reassessment, the redemption value is deemed equal to the carrying value as of June 30, 2014. | ||
The Company has determined that the recurring fair value measurements related to CCT rely primarily on Company-specific inputs and the Company’s assumptions about the use of the assets and settlements of liabilities, as observable inputs are not available and, as such, reside within Level 3 of the fair value hierarchy as defined in Footnote 4. The Company utilized a third party to assist in the determination of the Transaction Date Assessment and Options Assessment and these were determined based upon internal and external inputs considering various relevant market transactions, discounted cash flow valuation methods, assessing appropriate discounts for lack of control and marketability, and probability weighting, among other factors. |
Earnings_Per_Share
Earnings Per Share | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
Earnings Per Share | ' | ||||||||||||||||
3 | Earnings Per Share | ||||||||||||||||
Net income per share is computed on the basis of the weighted average number of common shares outstanding during the period. Diluted earnings per share includes the dilutive effect of stock options and other stock units. The following table sets forth the computation of basic and diluted earnings per share: | |||||||||||||||||
Three months ended June 30 | Six months ended June 30 | ||||||||||||||||
2013 | 2014 | 2013 | 2014 | ||||||||||||||
Numerator | |||||||||||||||||
Numerator for basic and diluted earnings per share - Net income attributable to common stockholders | $ | 35,486 | $ | 38,182 | $ | 91,566 | $ | 83,616 | |||||||||
Denominator | |||||||||||||||||
Denominator for basic earnings per share - weighted average shares outstanding | 63,342 | 63,537 | 63,284 | 63,468 | |||||||||||||
Effect of dilutive securities - stock options and other stock units | 800 | 944 | 879 | 942 | |||||||||||||
Denominator for diluted earnings per share - adjusted weighted average shares outstanding | 64,142 | 64,481 | 64,163 | 64,410 | |||||||||||||
Basic earnings per share: | |||||||||||||||||
Net income attributable to Cooper Tire & Rubber Company common stockholders | $ | 0.56 | $ | 0.6 | $ | 1.45 | $ | 1.32 | |||||||||
Diluted earnings per share: | |||||||||||||||||
Net income attributable to Cooper Tire & Rubber Company common stockholders | $ | 0.55 | $ | 0.59 | $ | 1.43 | $ | 1.3 | |||||||||
There were no options to purchase shares of the Company’s common stock not included in the computation of diluted earnings per share because the options’ exercise prices were greater than the average market price of the common shares at either June 30, 2013 or 2014. |
Fair_Value_of_Financial_Instru
Fair Value of Financial Instruments | 6 Months Ended | ||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||
Derivative Instruments And Hedging Activities Disclosure [Abstract] | ' | ||||||||||||||||||
Fair Value of Financial Instruments | ' | ||||||||||||||||||
4 | Fair Value of Financial Instruments | ||||||||||||||||||
Derivative financial instruments are utilized by the Company to reduce foreign currency exchange risks. The Company has established policies and procedures for risk assessment and the approval, reporting and monitoring of derivative financial instrument activities. The Company does not enter into financial instruments for trading or speculative purposes. The derivative financial instruments include fair value and cash flow hedges of foreign currency exposures. The change in values of the fair value foreign currency hedges offset exchange rate fluctuations on the foreign currency-denominated intercompany loans and obligations. The Company presently hedges exposures in the Euro, Canadian dollar, British pound sterling, Swiss franc, Swedish krona, Norwegian krone, Mexican peso and Chinese yuan generally for transactions expected to occur within the next 12 months. The notional amount of these foreign currency derivative instruments at December 31, 2013 and June 30, 2014 was $148,036 and $162,704, respectively. The counterparties to each of these agreements are major commercial banks. | |||||||||||||||||||
The Company uses foreign currency forward contracts as hedges of the fair value of certain non-U.S. dollar denominated asset and liability positions, primarily accounts receivable and debt. Gains and losses resulting from the impact of currency exchange rate movements on these forward contracts are recognized in the accompanying Consolidated Statements of Income in the period in which the exchange rates change and offset the foreign currency gains and losses on the underlying exposure being hedged. | |||||||||||||||||||
Foreign currency forward contracts are also used to hedge variable cash flows associated with forecasted sales and purchases denominated in currencies that are not the functional currency of certain entities. The forward contracts have maturities of less than twelve months pursuant to the Company’s policies and hedging practices. These forward contracts meet the criteria for and have been designated as cash flow hedges. Accordingly, the effective portion of the change in fair value of such forward contracts (approximately $398 and ($2,591) as of December 31, 2013 and June 30, 2014, respectively) are recorded as a separate component of stockholders’ equity in the accompanying Condensed Consolidated Balance Sheets and reclassified into earnings as the hedged transactions occur. | |||||||||||||||||||
The Company assesses hedge ineffectiveness quarterly using the hypothetical derivative methodology. In doing so, the Company monitors the actual and forecasted foreign currency sales and purchases versus the amounts hedged to identify any hedge ineffectiveness. Any hedge ineffectiveness is recorded as an adjustment in the accompanying Condensed Consolidated Statements of Income in the period in which the ineffectiveness occurs. The Company also performs regression analysis comparing the change in value of the hedging contracts versus the underlying foreign currency sales and purchases, which confirms a high correlation and hedge effectiveness. | |||||||||||||||||||
The Company enters into various derivative contracts with financial institutions under master netting arrangements which include a right to offset. The following table presents the fair value of the gross position of the derivative contracts, the amount offset under the master netting arrangements and the net amounts and the location of those amounts in the Condensed Consolidated Balance Sheets. | |||||||||||||||||||
Assets/(liabilities) | December 31, 2013 | June 30, 2014 | |||||||||||||||||
Designated as hedging instruments: | |||||||||||||||||||
Gross amounts recognized | $ | 2,702 | $ | (3,802 | ) | ||||||||||||||
Gross amounts offset | (2,232 | ) | 1,111 | ||||||||||||||||
Net amounts | $ | 470 | $ | (2,691 | ) | ||||||||||||||
Not designated as hedging instruments: | |||||||||||||||||||
Gross amounts recognized | $ | (121 | ) | $ | (165 | ) | |||||||||||||
Gross amounts offset | — | — | |||||||||||||||||
Net amounts | $ | (121 | ) | $ | (165 | ) | |||||||||||||
Net amounts presented | Other current assets | $ | 349 | Accrued liabilities | $ | (2,856 | ) | ||||||||||||
The following table presents the location and amount of gains and losses on derivative instruments in the Condensed Consolidated Statements of Income: | |||||||||||||||||||
Derivatives | Amount of Gain (Loss) | Amount of Gain (Loss) | Amount of Gain (Loss) | ||||||||||||||||
Designated as | Recognized in | Reclassified | Recognized in | ||||||||||||||||
Cash Flow Hedges | Other Comprehensive | from Cumulative | Income | ||||||||||||||||
Income on Derivatives | Other Comprehensive | on Derivatives | |||||||||||||||||
(Effective Portion) | Loss into Income | (Ineffective Portion) | |||||||||||||||||
(Effective Portion) | |||||||||||||||||||
Three Months Ended June 30, 2013 | $ | 3,210 | $ | 944 | $ | (266 | ) | ||||||||||||
Three Months Ended June 30, 2014 | $ | (4,130 | ) | $ | 401 | $ | (245 | ) | |||||||||||
Six Months Ended June 30, 2013 | $ | 5,242 | $ | 449 | $ | (210 | ) | ||||||||||||
Six Months Ended June 30, 2014 | $ | (1,689 | ) | $ | 1,300 | $ | (173 | ) | |||||||||||
Amount of Gain (Loss) | |||||||||||||||||||
Location of | Recognized In Income on Derivatives | ||||||||||||||||||
Gain (Loss) | |||||||||||||||||||
Derivatives not | Recognized | Three Months Ended | Six Months Ended | ||||||||||||||||
Designated as | in Income on | June 30, | June 30, | ||||||||||||||||
Hedging Instruments | Derivatives | 2013 | 2014 | 2013 | 2014 | ||||||||||||||
Foreign exchange contracts | Other income | $ | (130 | ) | $ | 88 | $ | (633 | ) | $ | (44 | ) | |||||||
The Company has categorized its financial instruments, based on the priority of the inputs to the valuation technique, into the three-level fair value hierarchy. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). If the inputs used to measure the financial instruments fall within the different levels of the hierarchy, the categorization is based on the lowest level input that is significant to the fair value measurement of the instrument. | |||||||||||||||||||
Financial assets and liabilities recorded on the Condensed Consolidated Balance Sheets are categorized based on the inputs to the valuation techniques as follows: | |||||||||||||||||||
Level 1. Financial assets and liabilities whose values are based on unadjusted quoted prices for identical assets or liabilities in an active market that the Company has the ability to access. | |||||||||||||||||||
Level 2. Financial assets and liabilities whose values are based on quoted prices in markets that are not active or model inputs that are observable either directly or indirectly for substantially the full term of the asset or liability. Level 2 inputs include the following: | |||||||||||||||||||
a. | Quoted prices for similar assets or liabilities in active markets; | ||||||||||||||||||
b. | Quoted prices for identical or similar assets or liabilities in non-active markets; | ||||||||||||||||||
c. | Pricing models whose inputs are observable for substantially the full term of the asset or liability; and | ||||||||||||||||||
d. | Pricing models whose inputs are derived principally from or corroborated by observable market data through correlation or other means for substantially the full term of the asset or liability. | ||||||||||||||||||
Level 3. Financial assets and liabilities whose values are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. These inputs reflect management’s own assumptions about the assumptions a market participant would use in pricing the asset or liability. | |||||||||||||||||||
The valuation of foreign exchange forward contracts was determined using widely accepted valuation techniques. This analysis reflected the contractual terms of the derivatives, including the period to maturity, and used observable market-based inputs, including forward points. The Company incorporated credit valuation adjustments to appropriately reflect both its own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. Although the Company determined that the majority of the inputs used to value its derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with its derivatives utilize Level 3 inputs, such as current credit ratings, to evaluate the likelihood of default by itself and its counterparties. However, as of December 31, 2013 and June 30, 2014, the Company assessed the significance of the impact of the credit valuation adjustments on the overall valuation of its derivative positions and determined that the credit valuation adjustments were not significant to the overall valuation of its derivatives. As a result, the Company determined that its derivative valuations in their entirety were classified in Level 2 of the fair value hierarchy. | |||||||||||||||||||
The following table presents the Company’s fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis as of December 31, 2013 and June 30, 2014: | |||||||||||||||||||
December 31, 2013 | |||||||||||||||||||
Quoted Prices | Significant | ||||||||||||||||||
Total | in Active Markets | Other | Significant | ||||||||||||||||
Assets | for Identical | Observable | Unobservable | ||||||||||||||||
Assets | Inputs | Inputs | |||||||||||||||||
(Liabilities) | Level (1) | Level (2) | Level (3) | ||||||||||||||||
Foreign Exchange Contracts | $ | 349 | $ | — | $ | 349 | $ | — | |||||||||||
Stock-based Liabilities | $ | (12,462 | ) | $ | (12,462 | ) | $ | — | $ | — | |||||||||
30-Jun-14 | |||||||||||||||||||
Total | Quoted Prices | Significant | Significant | ||||||||||||||||
Assets | in Active Markets | Other | Unobservable | ||||||||||||||||
(Liabilities) | for Identical | Observable | Inputs | ||||||||||||||||
Assets | Inputs | Level (3) | |||||||||||||||||
Level (1) | Level (2) | ||||||||||||||||||
Foreign Exchange Contracts | $ | (2,856 | ) | $ | — | $ | (2,856 | ) | $ | — | |||||||||
Stock-based Liabilities | $ | (16,729 | ) | $ | (16,729 | ) | $ | — | $ | — | |||||||||
Redeemable noncontrolling shareholder interest | $ | (162,195 | ) | $ | — | $ | — | $ | (162,195 | ) | |||||||||
(see Footnote 2 - CCT Agreement) | |||||||||||||||||||
The following tables present the carrying amounts and fair values for the Company’s financial instruments carried at cost on the Condensed Consolidated Balance Sheets. The fair value of the Company’s debt is based upon the market price of the Company’s publicly-traded debt. The carrying amounts and fair values of the Company’s financial instruments are as follows: | |||||||||||||||||||
December 31, 2013 | |||||||||||||||||||
Fair Value Measurements Using | |||||||||||||||||||
Quoted Prices | Significant | ||||||||||||||||||
in Active Markets | Other | Significant | |||||||||||||||||
for Identical | Observable | Unobservable | |||||||||||||||||
Carrying | Instruments | Inputs | Inputs | ||||||||||||||||
Amount | Level (1) | Level (2) | Level (3) | ||||||||||||||||
Cash and cash equivalents | $ | 397,731 | $ | 397,731 | $ | — | $ | — | |||||||||||
Notes receivable | 86,965 | 86,965 | — | — | |||||||||||||||
Restricted cash | 2,759 | 2,759 | |||||||||||||||||
Notes payable | (22,105 | ) | (22,105 | ) | — | — | |||||||||||||
Current portion of long-term debt | (17,868 | ) | (17,868 | ) | — | — | |||||||||||||
Long-term debt | (320,959 | ) | (334,759 | ) | — | — | |||||||||||||
30-Jun-14 | |||||||||||||||||||
Fair Value Measurements Using | |||||||||||||||||||
Quoted Prices | Significant | ||||||||||||||||||
in Active Markets | Other | Significant | |||||||||||||||||
for Identical | Observable | Unobservable | |||||||||||||||||
Carrying | Instruments | Inputs | Inputs | ||||||||||||||||
Amount | Level (1) | Level (2) | Level (3) | ||||||||||||||||
Cash and cash equivalents | $ | 326,636 | $ | 326,636 | $ | — | $ | — | |||||||||||
Notes receivable | 83,241 | 83,241 | — | — | |||||||||||||||
Restricted cash | 1,016 | 1,016 | — | — | |||||||||||||||
Notes payable | (24,478 | ) | (24,478 | ) | — | — | |||||||||||||
Current portion of long-term debt | (15,671 | ) | (15,671 | ) | — | — | |||||||||||||
Long-term debt | (326,188 | ) | (356,988 | ) | — | — |
Business_Segments
Business Segments | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||
Business Segments | ' | ||||||||||||||||
5 | Business Segments | ||||||||||||||||
The following table details information on the Company’s operating segments. | |||||||||||||||||
Three months ended June 30 | Six months ended June 30 | ||||||||||||||||
2013 | 2014 | 2013 | 2014 | ||||||||||||||
Revenues: | |||||||||||||||||
North American Tire | |||||||||||||||||
External customers | $ | 607,075 | $ | 624,999 | $ | 1,193,951 | $ | 1,168,959 | |||||||||
Intercompany | 16,110 | 14,235 | 31,508 | 33,769 | |||||||||||||
623,185 | 639,234 | 1,225,459 | 1,202,728 | ||||||||||||||
International Tire | |||||||||||||||||
External customers | 277,052 | 263,686 | 551,856 | 516,184 | |||||||||||||
Intercompany | 76,218 | 63,134 | 142,445 | 120,582 | |||||||||||||
353,270 | 326,820 | 694,301 | 636,766 | ||||||||||||||
Eliminations | (92,329 | ) | (77,369 | ) | (173,953 | ) | (154,351 | ) | |||||||||
Net sales | $ | 884,126 | $ | 888,685 | $ | 1,745,807 | $ | 1,685,143 | |||||||||
Segment profit (loss): | |||||||||||||||||
North American Tire | $ | 59,213 | $ | 64,833 | $ | 130,619 | $ | 133,462 | |||||||||
International Tire | 29,229 | 26,459 | 59,239 | 49,607 | |||||||||||||
Eliminations | 117 | (1,640 | ) | 1,164 | (1,258 | ) | |||||||||||
Unallocated corporate charges | (19,393 | ) | (13,063 | ) | (25,192 | ) | (24,311 | ) | |||||||||
Operating profit | 69,166 | 76,589 | 165,830 | 157,500 | |||||||||||||
Interest expense | (7,231 | ) | (6,792 | ) | (14,332 | ) | (13,910 | ) | |||||||||
Interest income | 141 | 270 | 437 | 783 | |||||||||||||
Other - income (expense) | (834 | ) | 477 | (239 | ) | 466 | |||||||||||
Income before income taxes | $ | 61,242 | $ | 70,544 | $ | 151,696 | $ | 144,839 | |||||||||
Inventories
Inventories | 6 Months Ended | |
Jun. 30, 2014 | ||
Inventory Disclosure [Abstract] | ' | |
Inventories | ' | |
6 | Inventories | |
Inventory costs are determined using the last-in, first-out (“LIFO”) method for substantially all U.S. inventories. The current cost of this inventory under the first-in, first-out (“FIFO”) method was $432,906 and $510,199 at December 31, 2013 and June 30, 2014, respectively. These FIFO values have been reduced by approximately $161,436 and $126,374 at December 31, 2013 and June 30, 2014, respectively, to arrive at the LIFO value reported on the Condensed Consolidated Balance Sheets. The remaining inventories have been valued under the FIFO or average cost method. All inventories are stated at the lower of cost or market. |
StockBased_Compensation
Stock-Based Compensation | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ||||||||||||||||
Stock-Based Compensation | ' | ||||||||||||||||
7 | Stock-Based Compensation | ||||||||||||||||
The Company’s incentive compensation plans allow the Company to grant awards to key employees in the form of stock options, stock awards, restricted stock units (“RSUs”), stock appreciation rights, performance stock units (“PSUs”), dividend equivalents and other awards. Compensation related to these awards is determined based on the fair value on the date of grant and is amortized to expense over the vesting period. For restricted stock units and performance stock units, the Company recognizes compensation expense based on the earlier of the vesting date or the date when the employee becomes eligible to retire. If awards can be settled in cash, these awards are recorded as liabilities and marked to market. | |||||||||||||||||
The following table discloses the amount of stock based compensation expense for the three- month and six-month periods ended June 30, 2013 and 2014: | |||||||||||||||||
Three months ended June 30 | Six months ended June 30 | ||||||||||||||||
2013 | 2014 | 2013 | 2014 | ||||||||||||||
Stock options | $ | 1,002 | $ | 1,075 | $ | 1,973 | $ | 2,089 | |||||||||
Restricted stock units | 280 | 153 | 559 | 309 | |||||||||||||
Performance stock units | 1,361 | 948 | 1,929 | 1,214 | |||||||||||||
Total stock based compensation | $ | 2,643 | $ | 2,176 | $ | 4,461 | $ | 3,612 | |||||||||
Stock Options | |||||||||||||||||
In February 2012, executives participating in the 2012–2014 Long-Term Incentive Plan were granted 589,934 stock options which will vest one- third each year through February 2015. In February 2013, executives participating in the 2013-2015 Long-Term Incentive Plan were granted 330,639 stock options which will vest one- third each year through February 2016. In February 2014, executives participating in the 2014-2016 Long-Term Incentive Plan were granted 380,064 stock options which will vest one- third each year through February 2017. The fair value of these options was estimated at the date of grant using a Black-Scholes option pricing model with the following weighted-average assumptions: | |||||||||||||||||
2013 | 2014 | ||||||||||||||||
Risk-free interest rate | 1.17 | % | 2 | % | |||||||||||||
Dividend yield | 1.7 | % | 1.8 | % | |||||||||||||
Expected volatility of the Company’s common stock | 0.646 | 0.64 | |||||||||||||||
Expected life in years | 6 | 6 | |||||||||||||||
The weighted average fair value of options granted in 2013 and 2014 was $12.97 and $12.26, respectively. | |||||||||||||||||
The following table provides details of the stock option activity for the six months ended June 30, 2014: | |||||||||||||||||
Number of | |||||||||||||||||
Shares | |||||||||||||||||
Outstanding at January 1, 2014 | 1,710,244 | ||||||||||||||||
Granted | 380,064 | ||||||||||||||||
Exercised | (121,419 | ) | |||||||||||||||
Expired | (53,000 | ) | |||||||||||||||
Cancelled | (13,414 | ) | |||||||||||||||
Outstanding at June 30, 2014 | 1,902,475 | ||||||||||||||||
Exercisable | 1,119,451 | ||||||||||||||||
Restricted Stock Units (RSUs) | |||||||||||||||||
The following table provides details of the nonvested RSU activity for the six months ended June 30, 2014: | |||||||||||||||||
Number of | |||||||||||||||||
Restricted | |||||||||||||||||
Units | |||||||||||||||||
Nonvested at January 1, 2014 | 60,686 | ||||||||||||||||
Vested | (29,028 | ) | |||||||||||||||
Accrued dividend equivalents | 394 | ||||||||||||||||
Nonvested at June 30, 2014 | 32,052 | ||||||||||||||||
Performance Stock Units (PSUs) | |||||||||||||||||
Executives participating in the Company’s Long-Term Incentive Plan for the plan year 2012–2014, earn PSUs and cash. Any units and cash earned during 2012, 2013 and 2014 will vest at December 31, 2014. | |||||||||||||||||
Executives participating in the Company’s Long-Term Incentive Plan for the plan year 2013–2015, earn PSUs and cash. Any units and cash earned during 2013 and 2014 will vest at December 31, 2015. | |||||||||||||||||
Executives participating in the Company’s Long-Term Incentive Plan for the plan year 2014– 2016, earn PSUs and cash. Any units and cash earned during 2014 will vest at December 31, 2016. | |||||||||||||||||
The following table provides details of the nonvested PSUs under the Company’s Long-Term Incentive Plans: | |||||||||||||||||
Performance stock units outstanding at January 1, 2014 | 156,772 | ||||||||||||||||
Cancelled | (2,104 | ) | |||||||||||||||
Accrued dividend equivalents | 1,316 | ||||||||||||||||
Performance stock units outstanding at June 30, 2014 | 155,984 | ||||||||||||||||
The Company’s RSUs and PSUs are not participating securities. These units will be converted into shares of Company common stock in accordance with the distribution date indicated in the agreements. RSUs earn dividend equivalents from the time of the award until distribution is made in common shares. PSUs earn dividend equivalents from the time the units have been earned based upon Company performance metrics, until distribution is made in common shares. Dividend equivalents are only earned subject to vesting of the underlying RSUs or PSUs, accordingly, such units do not represent participating securities. |
Pensions_and_Postretirement_Be
Pensions and Postretirement Benefits Other than Pensions | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Compensation And Retirement Disclosure [Abstract] | ' | ||||||||||||||||
Pensions and Postretirement Benefits Other than Pensions | ' | ||||||||||||||||
8 | Pensions and Postretirement Benefits Other than Pensions | ||||||||||||||||
The following tables disclose the amount of net periodic benefit costs for the Company’s defined benefit plans and other postretirement benefits relating to continuing operations: | |||||||||||||||||
Pension Benefits - Domestic | |||||||||||||||||
Three months ended June 30 | Six months ended June 30 | ||||||||||||||||
2013 | 2014 | 2013 | 2014 | ||||||||||||||
Components of net periodic benefit cost: | |||||||||||||||||
Service cost | $ | 2,970 | $ | 2,440 | $ | 5,940 | $ | 4,880 | |||||||||
Interest cost | 9,657 | 10,710 | 19,314 | 21,421 | |||||||||||||
Expected return on plan assets | (11,889 | ) | (13,136 | ) | (23,778 | ) | (26,271 | ) | |||||||||
Amortization of actuarial loss | 11,086 | 7,006 | 22,172 | 14,011 | |||||||||||||
Net periodic benefit cost | $ | 11,824 | $ | 7,020 | $ | 23,648 | $ | 14,041 | |||||||||
Pension Benefits - International | |||||||||||||||||
Three months ended June 30 | Six months ended June 30 | ||||||||||||||||
2013 | 2014 | 2013 | 2014 | ||||||||||||||
Components of net periodic benefit cost: | |||||||||||||||||
Service cost | $ | 3 | $ | 3 | $ | 6 | $ | 6 | |||||||||
Interest cost | 3,841 | 5,009 | 7,727 | 9,935 | |||||||||||||
Expected return on plan assets | (3,674 | ) | (5,100 | ) | (7,392 | ) | (10,115 | ) | |||||||||
Amortization of actuarial loss | 904 | 2,158 | 1,818 | 4,280 | |||||||||||||
Net periodic benefit cost | $ | 1,074 | $ | 2,070 | $ | 2,159 | $ | 4,106 | |||||||||
Other Postretirement Benefits | |||||||||||||||||
Three months ended June 30 | Six months ended June 30 | ||||||||||||||||
2013 | 2014 | 2013 | 2014 | ||||||||||||||
Components of net periodic benefit cost: | |||||||||||||||||
Service cost | $ | 954 | $ | 601 | $ | 1,907 | $ | 1,202 | |||||||||
Interest cost | 2,698 | 2,826 | 5,396 | 5,652 | |||||||||||||
Amortization of prior service cost | (142 | ) | (141 | ) | (284 | ) | (283 | ) | |||||||||
Amortization of actuarial loss | 479 | — | 958 | — | |||||||||||||
Net periodic benefit cost | $ | 3,989 | $ | 3,286 | $ | 7,977 | $ | 6,571 | |||||||||
Stockholders_Equity
Stockholders' Equity | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||
Stockholders' Equity | ' | ||||||||||||||||
9 | Stockholders’ Equity | ||||||||||||||||
The following table reconciles the beginning and end of the period equity accounts attributable to Cooper Tire & Rubber Company and to the noncontrolling shareholders’ interests: | |||||||||||||||||
Total Equity | |||||||||||||||||
Noncontrolling | |||||||||||||||||
Redeemable | Total | Shareholder | |||||||||||||||
Noncontrolling | Parent | Interest in | Total | ||||||||||||||
Shareholder | Stockholders’ | Consolidated | Stockholders’ | ||||||||||||||
Interest | Equity | Subsidiary | Equity | ||||||||||||||
Balance at December 31, 2013 | $ | — | $ | 990,866 | $ | 166,759 | $ | 1,157,625 | |||||||||
Reclassification of redeemable noncontrolling shareholder interest | 152,250 | (28,285 | ) | (123,965 | ) | (152,250 | ) | ||||||||||
Net income | 10,937 | 83,616 | 1,933 | 85,549 | |||||||||||||
Other comprehensive income | (992 | ) | 8,451 | 19 | 8,470 | ||||||||||||
Dividends payable to noncontrolling shareholders | — | — | (2,570 | ) | (2,570 | ) | |||||||||||
Stock compensation plans | — | 4,984 | — | 4,984 | |||||||||||||
Cash dividends - $.210 per share | — | (13,332 | ) | — | (13,332 | ) | |||||||||||
Balance at June 30, 2014 | $ | 162,195 | $ | 1,046,300 | $ | 42,176 | $ | 1,088,476 | |||||||||
Changes_in_Cumulative_Other_Co
Changes in Cumulative Other Comprehensive Loss by Component | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||
Changes in Cumulative Other Comprehensive Loss by Component | ' | ||||||||||||||||
10 | Changes in Cumulative Other Comprehensive Loss by Component | ||||||||||||||||
The following tables present the changes in Cumulative Other Comprehensive Loss by Component for the three- and six-month periods ended June 30, 2014. All amounts are presented net of tax. Amounts in parentheses indicate debits. | |||||||||||||||||
Three Months Ended June 30, 2014 | |||||||||||||||||
Cumulative | Changes | Unrecognized | |||||||||||||||
Currency | in the Fair | Postretirement | |||||||||||||||
Translation | Value of | Benefit | |||||||||||||||
Adjustment | Derivatives | Plans | Total | ||||||||||||||
1-Apr-14 | $ | 56,903 | $ | 2,544 | $ | (465,935 | ) | $ | (406,488 | ) | |||||||
Other comprehensive income (loss) before reclassifications | 4,537 | (2,511 | )(a) | (2,730 | )(c) | (704 | ) | ||||||||||
Amount reclassifed from accumulated other comprehensive loss | — | (321 | )(b) | 5,944 | (d) | 5,623 | |||||||||||
Net current-period other comprehensive income | 4,537 | (2,832 | ) | 3,214 | 4,919 | ||||||||||||
30-Jun-14 | $ | 61,440 | $ | (288 | ) | $ | (462,721 | ) | $ | (401,569 | ) | ||||||
(a) | This amount represents $4,130 of unrealized losses on cash flow hedges, net of tax of $1,619, that were recognized in Other Comprehensive Loss (see Footnote 4 for additional details). | ||||||||||||||||
(b) | This amount represents $401 of gains on cash flow hedges, net of tax of $80, that were reclassified out of Cumulative Other Comprehensive Loss and are included in Other income on the Condensed Consolidated Statements of Income (see Footnote 4 for additional details). | ||||||||||||||||
(c) | This amount represents $3,455 of other comprehensive loss, net of tax of $725, that was recognized in Other Comprehensive Loss. | ||||||||||||||||
(d) | This amount represents amortization of prior service credit of $141 and amortization of actuarial losses of ($9,164), net of tax of $3,079, that were reclassified out of Cumulative Other Comprehensive Loss and are included in the computation of net periodic benefit cost (see Footnote 8 for additional details). | ||||||||||||||||
Six Months Ended June 30, 2014 | |||||||||||||||||
Cumulative | Changes | Unrecognized | |||||||||||||||
Currency | in the Fair | Postretirement | |||||||||||||||
Translation | Value of | Benefit | |||||||||||||||
Adjustment | Derivatives | Plans | Total | ||||||||||||||
31-Dec-13 | $ | 59,660 | $ | 1,615 | $ | (471,295 | ) | $ | (410,020 | ) | |||||||
Other comprehensive income (loss) before reclassifications | 1,780 | (1,041 | )(a) | (3,242 | )(c) | (2,503 | ) | ||||||||||
Amount reclassifed from accumulated other comprehensive loss | — | (862 | )(b) | 11,816 | (d) | 10,954 | |||||||||||
Net current-period other comprehensive income (loss) | 1,780 | (1,903 | ) | 8,574 | 8,451 | ||||||||||||
30-Jun-14 | $ | 61,440 | $ | (288 | ) | $ | (462,721 | ) | $ | (401,569 | ) | ||||||
(a) | This amount represents $1,689 of unrealized losses on cash flow hedges, net of tax of $648, that were recognized in Other Comprehensive Loss (see Footnote 4 for additional details). | ||||||||||||||||
(b) | This amount represents $1,300 of gains on cash flow hedges, net of tax of $438, that were reclassified out of Cumulative Other Comprehensive Loss and are included in Other income on the Condensed Consolidated Statements of Income (see Footnote 4 for additional details). | ||||||||||||||||
(c) | This amount represents $4,120 of other comprehensive loss, net of tax of $878, that was recognized in Other Comprehensive Loss. | ||||||||||||||||
(d) | This amount represents amortization of prior service credit of $283 and amortization of actuarial losses of ($18,291), net of tax of $6,192, that were reclassified out of Cumulative Other Comprehensive Loss and are included in the computation of net periodic benefit cost (see Footnote 8 for additional details). |
Comprehensive_Income_Attributa
Comprehensive Income Attributable to Noncontrolling Shareholders' Interests | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Text Block [Abstract] | ' | ||||||||||||||||
Comprehensive Income Attributable to Noncontrolling Shareholders' Interests | ' | ||||||||||||||||
11 | Comprehensive Income Attributable to Noncontrolling Shareholders’ Interests | ||||||||||||||||
The following table provides the details of the comprehensive income attributable to noncontrolling shareholders’ interests: | |||||||||||||||||
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||
2013 | 2014 | 2013 | 2014 | ||||||||||||||
Net income attributable to noncontrolling shareholders’ interests | $ | 6,114 | $ | 6,576 | $ | 12,871 | $ | 12,870 | |||||||||
Other comprehensive income: | |||||||||||||||||
Currency translation adjustments | (52 | ) | 207 | 1,751 | (973 | ) | |||||||||||
Comprehensive income attributable to noncontrolling shareholders’ interests | $ | 6,062 | $ | 6,783 | $ | 14,622 | $ | 11,897 | |||||||||
Product_Warranty_Liabilities
Product Warranty Liabilities | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Guarantees [Abstract] | ' | ||||||||
Product Warranty Liabilities | ' | ||||||||
12 | Product Warranty Liabilities | ||||||||
The Company provides for the estimated cost of product warranties at the time revenue is recognized based primarily on historical return rates, estimates of the eligible tire population and the value of tires to be replaced. The following table summarizes the activity in the Company’s product warranty liabilities: | |||||||||
2013 | 2014 | ||||||||
Reserve at January 1 | $ | 30,139 | $ | 30,853 | |||||
Additions | 9,712 | 9,772 | |||||||
Payments | (9,323 | ) | (9,358 | ) | |||||
Reserve at June 30 | $ | 30,528 | $ | 31,267 | |||||
Contingent_Liabilities
Contingent Liabilities | 6 Months Ended | |
Jun. 30, 2014 | ||
Text Block [Abstract] | ' | |
Contingent Liabilities | ' | |
13 | Contingent Liabilities | |
Products Liability Claims | ||
The Company is a defendant in various products liability claims brought in numerous jurisdictions in which individuals seek damages resulting from motor vehicle accidents allegedly caused by defective tires manufactured by the Company. Each of the products liability claims faced by the Company generally involve different types of tires, models and lines, different circumstances surrounding the accident such as different applications, vehicles, speeds, road conditions, weather conditions, driver error, tire repair and maintenance practices, service life conditions, as well as different jurisdictions and different injuries. In addition, in many of the Company’s products liability lawsuits the plaintiff alleges that his or her harm was caused by one or more co-defendants who acted independently of the Company. Accordingly, both the claims asserted and the resolutions of those claims have an enormous amount of variability. The aggregate amount of damages asserted at any point in time is not determinable since often times when claims are filed, the plaintiffs do not specify the amount of damages. Even when there is an amount alleged, at times the amount is wildly inflated and has no rational basis. | ||
The fact that the Company is a defendant in products liability lawsuits is not surprising given the current litigation climate, which is largely confined to the United States. However, the fact that the Company is subject to claims does not indicate that there is a quality issue with the Company’s tires. The Company sells approximately 30 to 35 million passenger, light truck, SUV, radial medium truck and motorcycle tires per year in North America. The Company estimates that approximately 300 million Company-produced tires – made up of thousands of different specifications – are still on the road in North America. While tire disablements do occur, it is the Company’s and the tire industry’s experience that the vast majority of tire failures relate to service-related conditions, which are entirely out of the Company’s control – such as failure to maintain proper tire pressure, improper maintenance, road hazard and excessive speed. | ||
The Company accrues costs for products liability at the time a loss is probable and the amount of loss can be estimated. The Company believes the probability of loss can be established and the amount of loss can be estimated only after certain minimum information is available, including verification that Company-produced products were involved in the incident giving rise to the claim, the condition of the product purported to be involved in the claim, the nature of the incident giving rise to the claim and the extent of the purported injury or damages. In cases where such information is known, each products liability claim is evaluated based on its specific facts and circumstances. A judgment is then made to determine the requirement for establishment or revision of an accrual for any potential liability. The liability often cannot be determined with precision until the claim is resolved. | ||
Pursuant to applicable accounting rules, the Company accrues the minimum liability for each known claim when the estimated outcome is a range of possible loss and no one amount within that range is more likely than another. The Company uses a range of losses because an average cost would not be meaningful since the products liability claims faced by the Company are unique and widely variable, and accordingly, the resolutions of those claims have an enormous amount of variability. The costs have ranged from zero dollars to $33 million in one case with no “average” that is meaningful. No specific accrual is made for individual unasserted claims or for premature claims, asserted claims where the minimum information needed to evaluate the probability of a liability is not yet known. However, an accrual for such claims based, in part, on management’s expectations for future litigation activity and the settled claims history is maintained. Because of the speculative nature of litigation in the U.S., the Company does not believe a meaningful aggregate range of potential loss for asserted and unasserted claims can be determined. The Company’s experience has demonstrated that its estimates have been reasonably accurate and, on average, cases are settled at amounts close to the reserves established. However, it is possible an individual claim from time to time may result in an aberration from the norm and could have a material impact. | ||
The Company determines its reserves using the number of incidents expected during a year. During the second quarter of 2014, the Company increased its products liability reserve by $14,535. The addition of another year of self-insured incidents accounted for $12,331 of this increase. The Company revised its estimates of future settlements for unasserted and premature claims. These revisions decreased the reserve by $600. Finally, settlements and changes in the amount of reserves for cases where sufficient information is known to estimate a liability increased by $2,804. | ||
During the first six months of 2014, the Company increased its products liability reserve by $26,462. The addition of another year of self-insured incidents accounted for $24,662 of this increase. The Company revised its estimates of future settlements for unasserted and premature claims. These revisions decreased the reserve by $600. Finally, settlements and changes in the amount of reserves for cases where sufficient information is known to estimate a liability increased by $2,400. | ||
The time frame for the payment of a products liability claim is too variable to be meaningful. From the time a claim is filed to its ultimate disposition depends on the unique nature of the case, how it is resolved – claim dismissed, negotiated settlement, trial verdict and appeals process – and is highly dependent on jurisdiction, specific facts, the plaintiff’s attorney, the court’s docket and other factors. Given that some claims may be resolved in weeks and others may take five years or more, it is impossible to predict with any reasonable reliability the time frame over which the accrued amounts may be paid. | ||
The Company paid $17,705 during the second quarter of 2014 to resolve cases and claims and has paid $33,259 through the first six months of 2014. The Company’s products liability reserve balance at December 31, 2013 totaled $189,513 (the current portion of $70,472 is included in Accrued liabilities and the long-term portion is included in Other long-term liabilities on the Condensed Consolidated Balance Sheets). The products liability reserve balance at June 30, 2014 totaled $182,716 (current portion of $69,891). | ||
The products liability expense reported by the Company includes amortization of insurance premium costs, adjustments to settlement reserves and legal costs incurred in defending claims against the Company offset by recoveries of legal fees. Legal costs are expensed as incurred and products liability insurance premiums are amortized over coverage periods. | ||
For the three-month periods ended June 30, 2013 and 2014, products liability expenses totaled $21,505 and $22,111, respectively. For the six-month periods ended June 30, 2013 and 2014, products liability expenses totaled $42,202 and $40,812, respectively. Products liability expenses are included in cost of goods sold in the Condensed Consolidated Statements of Income. | ||
Certain Litigation Related to the Apollo Merger | ||
Following the announcement of the proposed acquisition of the Company by wholly owned subsidiaries of Apollo Tyres Ltd. (the “Apollo entities”) in June 2013, alleged stockholders of the Company filed putative class action lawsuits in state courts in Delaware and Ohio. These lawsuits, captioned In re Cooper Tire & Rubber Co. Stockholders Litigation, No. 9658 VCL and Auld v. Cooper Tire & Rubber Co., et al., No. 2013 CV 293, alleged that the directors of the Company breached their fiduciary duties to the Company’s stockholders by agreeing to enter into the proposed transaction for an allegedly unfair price and as the result of an allegedly unfair process. The lawsuits sought, among other things, declaratory and injunctive relief. As discussed below, on December 30, 2013, the Company terminated the merger agreement with the Apollo entities. Following the termination of the merger agreement, the plaintiffs voluntarily dismissed the Delaware and Ohio lawsuits in April 2014. | ||
On October 4, 2013, the Company filed a complaint in the Court of Chancery of the State of Delaware, captioned Cooper Tire Co. v. Apollo (Mauritius) Holdings Pvt. Ltd., et al., No. 8980- VCG, asking that the Apollo entities be required to use their reasonable efforts to close the then-pending merger transaction as expeditiously as possible and also seeking, among other things, declaratory relief and damages. On October 14, 2013, the Apollo entities filed counterclaims against the Company seeking declaratory and injunctive relief. | ||
On November 8, 2013, after expedited proceedings, the court found that the Apollo entities had not materially breached the merger agreement. On December 19, 2013, the Apollo entities moved for an entry of declaratory judgment seeking a declaration that the conditions to closing the then-pending transaction were not satisfied before the November 2013 trial. On December 30, 2013, the Company terminated the merger agreement with the Apollo entities, and requested payment of the reverse termination fee, which the Apollo entities have refused to do. On January 27, 2014, the court determined that it would proceed with a decision on the Apollo entities’ motion for declaratory judgment. That motion has been fully briefed and on July 9, 2014, the court heard oral arguments. A decision is expected to be issued in the future. | ||
The Company regularly reviews the probable outcome of such legal proceedings, the expenses expected to be incurred, the availability and limits of the insurance coverage, and accrues for such legal proceedings at the time a loss is probable and the amount of the loss can be estimated. | ||
An estimate of any such loss cannot be made at this time, as no claims for damages against the Company have been asserted and the outcome of these pending proceedings cannot be predicted with certainty. The Company believes that based upon information currently available, any liabilities that may result from these proceedings are not reasonably likely to have a material adverse effect on the Company’s liquidity, financial condition or results of operations. | ||
Federal Securities Litigation | ||
On January 17, 2014, alleged stockholders of the Company filed a putative class-action lawsuit against the Company and certain of its officers in the United States District Court for the District of Delaware relating to the terminated Apollo transaction. That lawsuit, captioned OFI Risk Arbitrages, et al. v. Cooper Tire & Rubber Co., et al., No. 1:14-cv-00068-LPS, generally alleges that the Company and certain officers violated the federal securities laws by issuing allegedly misleading disclosures in connection with the terminated transaction and seeks, among other things, damages. The Company and its officers believe that the allegations against them lack merit and intend to defend the lawsuit vigorously. | ||
The Company regularly reviews the probable outcome of such legal proceedings, the expenses expected to be incurred, the availability and limits of the insurance coverage, and accrues for these proceedings at the time a loss is probable and the amount of the loss can be estimated. | ||
This case has recently been filed and is at an early stage. As a result, the outcome of these pending proceedings cannot be predicted with certainty and an estimate of any such loss cannot be made at this time. The Company believes that based upon information currently available, any liabilities that may result from these proceedings are not reasonably likely to have a material adverse effect on the Company’s liquidity, financial condition or results of operations. | ||
Stockholder Derivative Litigation | ||
On February 24, March 6, and April 17, 2014, purported stockholders of the Company filed derivative actions on behalf of the Company in the U.S. District Court for the Northern District of Ohio and the U.S. District Court for the District of Delaware against certain current officers and employees and the current members of the Company’s board of directors; the Ohio lawsuits were later consolidated into a single proceeding. The Company is named as a nominal defendant in the lawsuits, and the lawsuits seek recovery for the benefit of the Company. The lawsuits, captioned In re Cooper Tire & Rubber Company Shareholder Derivative Litigation, No. 3:14-cv-00428 (N.D. Ohio) and Fitzgerald v. Armes, et al., No. 1:14-cv-479 (D. Del.), allege that the defendants breached their fiduciary duties to the Company by issuing allegedly misleading disclosures in connection with the terminated merger transaction. The lawsuits also allege that the defendants violated Section 14(a) of the Securities Exchange Act of 1934 by means of the same allegedly misleading disclosures. The complaints also variously assert claims for waste of corporate assets, unjust enrichment, “gross mismanagement” and “abuse of control.” The complaints seek, among other things, unspecified money damages from the defendants, injunctive relief and an award of attorney’s fees. A purported shareholder of the Company has also submitted a demand to the Company’s board of directors that it cause the Company to bring claims against certain of the Company’s officers and directors for the matters alleged in the shareholder derivative lawsuits. | ||
The Company regularly reviews the probable outcome of such legal proceedings, the expenses expected to be incurred, the availability and limits of the insurance coverage, and accrues for such legal proceedings at the time a loss is probable and the amount of the loss can be estimated. | ||
These cases have recently been filed and are at an early stage and they do not assert claims against the Company. The outcome of these pending proceedings cannot be predicted with certainty and an estimate of any loss cannot be made at this time. The Company believes that based upon information currently available, any liabilities that may result from these proceedings are not reasonably likely to have a material adverse effect on the Company’s liquidity, financial condition or results of operations. | ||
Other Litigation | ||
In addition to the proceedings described above, the Company is involved in various other legal proceedings arising in the ordinary course of business. The Company regularly reviews the probable outcome of these proceedings, the expenses expected to be incurred, the availability and limits of the insurance coverage, and accrues for these proceedings at the time a loss is probable and the amount of the loss can be estimated. Although the outcome of these pending proceedings cannot be predicted with certainty and an estimate of any such loss cannot be made, the Company believes that any liabilities that may result from these proceedings are not reasonably likely to have a material adverse effect on the Company’s liquidity, financial condition or results of operations. |
Income_Taxes
Income Taxes | 6 Months Ended | |
Jun. 30, 2014 | ||
Income Tax Disclosure [Abstract] | ' | |
Income Taxes | ' | |
14 | Income Taxes | |
For the quarter ended June 30, 2014, the Company recorded income tax expense of $25,786 (effective rate of 36.6 percent) compared with $19,642 (effective rate of 32.1 percent) for the comparable period in 2013. For the six-month period ended June 30, 2014, the Company recorded income tax expense of $48,353 (effective rate of 33.4 percent) compared with $47,259 (effective rate of 31.2 percent) for the comparable period in 2013. The 2014 quarter and six-month period income tax expense is calculated using the forecasted multi-jurisdictional annual effective tax rates to determine a blended annual effective tax rate. This rate differs from the U.S. federal statutory rate of 35 percent primarily because of the projected mix of earnings in international jurisdictions with lower tax rates, partially offset by losses in jurisdictions with no tax benefit due to valuation allowances. Income tax expense for the current quarter is higher due primarily to increased earnings in both the U.S. and non-U.S. jurisdictions, as well as increased losses in jurisdictions with no tax benefit due to valuation allowances, compared with the same quarter of the prior year. Income tax expense for the six-month period is higher due primarily to increased losses in jurisdictions with no benefit due to valuation allowances compared with the same period in the prior year. | ||
The Company continues to maintain a valuation allowance pursuant to ASC 740, “Accounting for Income Taxes,” against a portion of its U.S. and non-U.S. deferred tax asset position, as it cannot assure the utilization of these assets before they expire. In the U.S., the Company has offset a portion of its deferred tax asset relating primarily to a capital loss carryforward by a valuation allowance of $22,072. In addition, the Company has recorded valuation allowances of $10,174 relating to non-U.S. net operating losses for a total valuation allowance of $32,246. In conjunction with the Company’s ongoing review of its actual results and anticipated future earnings, the Company will continue to reassess the possibility of releasing all or part of the valuation allowances currently in place when they are deemed to be realizable. | ||
The Company maintains an ASC 740-10, “Accounting for Uncertainty in Income Taxes,” liability for unrecognized tax benefits for permanent and temporary book/tax differences. At June 30, 2014, the Company’s liability, exclusive of interest, totals approximately $5,878. The Company accrued an immaterial amount of interest expense related to these unrecognized tax benefits during the quarter. | ||
The Company and its subsidiaries are subject to income tax examination in the U.S. federal jurisdiction and various state and foreign jurisdictions. With few exceptions, the Company is no longer subject to U.S. federal, state and foreign tax examinations by income and franchise tax authorities for years prior to 2007. |
Subsequent_Events
Subsequent Events | 6 Months Ended | |
Jun. 30, 2014 | ||
Subsequent Events [Abstract] | ' | |
Subsequent Events | ' | |
15 | Subsequent Events | |
On August 6, 2014, the Company entered into an Accelerated Share Repurchase (“ASR”) agreement to initiate share repurchases aggregating $200 million (the “ASR Program”). The Company anticipates that all repurchases under the ASR Program will be completed no later than the final repurchase date in February, 2015, although settlement may be accelerated or delayed under certain circumstances. Acquired shares of Common Stock will be held as treasury shares. |
Basis_of_Presentation_and_Cons1
Basis of Presentation and Consolidation (Policies) | 6 Months Ended |
Jun. 30, 2014 | |
Accounting Policies [Abstract] | ' |
Accounting Pronouncements | ' |
Accounting Pronouncements | |
Changes to accounting principles generally accepted in the United States of America (U.S. GAAP) are established by the Financial Accounting Standards Board (FASB) in the form of accounting standards updates (ASUs) to the FASB’s Accounting Standards Codification. | |
The Company considers the applicability and impact of all ASUs. ASUs not listed below were assessed and determined to be either not applicable or are expected to have minimal impact on the Company’s consolidated financial statements. | |
Accounting Pronouncements – Recently Adopted | |
Income Taxes – In July 2013, the FASB issued ASU 2013-11, “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists,” which clarifies treatment of unrecognized tax benefits based on surrounding circumstances. The amendments in this update are effective for the annual and interim periods beginning on or after December 15, 2013. Although the Company does not expect the adoption of ASU 2013-11 to have a material effect on its consolidated financial statements, it will modify presentation of its unrecognized tax benefit if the specific circumstances are met. The adoption of this accounting standards update did not have an impact on the Company’s consolidated financial statements. | |
Accounting Pronouncements – To be adopted | |
Discontinued Operations – In April 2014, the FASB issued ASU 2014-08, “Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity,” which requires that a disposal representing a strategic shift that has or will have a major effect on an entity’s financial results or a business activity classified as held for sale should be reported as discontinued operations. The amendments also expand the disclosure requirements for discontinued operations and add new disclosures for individually significant dispositions that do not qualify as discontinued operations. The guidance is effective for the interim and annual periods beginning on or after December 15, 2014 with early adoption permitted only for disposals that have not been previously reported. The implementation of the amended guidance is not expected to have a material impact on the Company’s consolidated financial statements. | |
Revenue Recognition – In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers,” which will supersede most current revenue recognition guidance, including industry-specific guidance. The core principle is that an entity will recognize revenue to depict the transfer of goods or services to customers in an amount that the entity expects to be entitled to in exchange for those goods or services. The guidance provides a five-step model to determine when and how revenue is recognized. Other major provisions include capitalization of certain contract costs, consideration of time value of money in the transaction price, and allowing estimates of variable consideration to be recognized before contingencies are resolved in certain circumstances. The guidance also requires enhanced disclosures regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from an entity’s contracts with customers. The guidance is effective for the interim and annual periods beginning on or after December 15, 2016 with early adoption not permitted. The guidance permits the use of either a retrospective or cumulative effect transition method. The Company has not yet selected a transition method and is currently evaluating the impact of the amended guidance on its consolidated financial statements and related disclosures. | |
Stock-Based Compensation – In June 2014, the FASB issued ASU 2014-12 “Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period,” which requires that a performance target that affects vesting, and that could be achieved after the requisite service period, be treated as a performance condition. As such, the performance target should not be reflected in estimating the grant date fair value of the award. This update further clarifies that compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the periods for which the requisite service has already been rendered. The guidance is effective for the interim and annual periods beginning on or after December 15, 2015 and can be applied either prospectively or retrospectively to all awards outstanding as of the beginning of the earliest annual period presented as an adjustment to opening retained earnings. Early adoption is permitted. The Company is evaluating the impact, if any, of adopting this new accounting guidance on its consolidated financial statements. |
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
Computation of Basic and Diluted Earnings Per Share | ' | ||||||||||||||||
The following table sets forth the computation of basic and diluted earnings per share: | |||||||||||||||||
Three months ended June 30 | Six months ended June 30 | ||||||||||||||||
2013 | 2014 | 2013 | 2014 | ||||||||||||||
Numerator | |||||||||||||||||
Numerator for basic and diluted earnings per share - Net income attributable to common stockholders | $ | 35,486 | $ | 38,182 | $ | 91,566 | $ | 83,616 | |||||||||
Denominator | |||||||||||||||||
Denominator for basic earnings per share - weighted average shares outstanding | 63,342 | 63,537 | 63,284 | 63,468 | |||||||||||||
Effect of dilutive securities - stock options and other stock units | 800 | 944 | 879 | 942 | |||||||||||||
Denominator for diluted earnings per share - adjusted weighted average shares outstanding | 64,142 | 64,481 | 64,163 | 64,410 | |||||||||||||
Basic earnings per share: | |||||||||||||||||
Net income attributable to Cooper Tire & Rubber Company common stockholders | $ | 0.56 | $ | 0.6 | $ | 1.45 | $ | 1.32 | |||||||||
Diluted earnings per share: | |||||||||||||||||
Net income attributable to Cooper Tire & Rubber Company common stockholders | $ | 0.55 | $ | 0.59 | $ | 1.43 | $ | 1.3 | |||||||||
Fair_Value_of_Financial_Instru1
Fair Value of Financial Instruments (Tables) | 6 Months Ended | ||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||
Derivative Instruments And Hedging Activities Disclosure [Abstract] | ' | ||||||||||||||||||
Fair Value of Gross Position of Derivative Contracts in Condensed Consolidated Balance Sheets | ' | ||||||||||||||||||
The following table presents the fair value of the gross position of the derivative contracts, the amount offset under the master netting arrangements and the net amounts and the location of those amounts in the Condensed Consolidated Balance Sheets. | |||||||||||||||||||
Assets/(liabilities) | December 31, 2013 | June 30, 2014 | |||||||||||||||||
Designated as hedging instruments: | |||||||||||||||||||
Gross amounts recognized | $ | 2,702 | $ | (3,802 | ) | ||||||||||||||
Gross amounts offset | (2,232 | ) | 1,111 | ||||||||||||||||
Net amounts | $ | 470 | $ | (2,691 | ) | ||||||||||||||
Not designated as hedging instruments: | |||||||||||||||||||
Gross amounts recognized | $ | (121 | ) | $ | (165 | ) | |||||||||||||
Gross amounts offset | — | — | |||||||||||||||||
Net amounts | $ | (121 | ) | $ | (165 | ) | |||||||||||||
Net amounts presented | Other current assets | $ | 349 | Accrued liabilities | $ | (2,856 | ) | ||||||||||||
Gains and Losses on Derivative Instruments in Consolidated Statement of Operations | ' | ||||||||||||||||||
The following table presents the location and amount of gains and losses on derivative instruments in the Condensed Consolidated Statements of Income: | |||||||||||||||||||
Derivatives | Amount of Gain (Loss) | Amount of Gain (Loss) | Amount of Gain (Loss) | ||||||||||||||||
Designated as | Recognized in | Reclassified | Recognized in | ||||||||||||||||
Cash Flow Hedges | Other Comprehensive | from Cumulative | Income | ||||||||||||||||
Income on Derivatives | Other Comprehensive | on Derivatives | |||||||||||||||||
(Effective Portion) | Loss into Income | (Ineffective Portion) | |||||||||||||||||
(Effective Portion) | |||||||||||||||||||
Three Months Ended June 30, 2013 | $ | 3,210 | $ | 944 | $ | (266 | ) | ||||||||||||
Three Months Ended June 30, 2014 | $ | (4,130 | ) | $ | 401 | $ | (245 | ) | |||||||||||
Six Months Ended June 30, 2013 | $ | 5,242 | $ | 449 | $ | (210 | ) | ||||||||||||
Six Months Ended June 30, 2014 | $ | (1,689 | ) | $ | 1,300 | $ | (173 | ) | |||||||||||
Amount of Gain (Loss) | |||||||||||||||||||
Location of | Recognized In Income on Derivatives | ||||||||||||||||||
Gain (Loss) | |||||||||||||||||||
Derivatives not | Recognized | Three Months Ended | Six Months Ended | ||||||||||||||||
Designated as | in Income on | June 30, | June 30, | ||||||||||||||||
Hedging Instruments | Derivatives | 2013 | 2014 | 2013 | 2014 | ||||||||||||||
Foreign exchange contracts | Other income | $ | (130 | ) | $ | 88 | $ | (633 | ) | $ | (44 | ) | |||||||
Assets and Liabilities Measured at Fair Value on Recurring Basis | ' | ||||||||||||||||||
The following table presents the Company’s fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis as of December 31, 2013 and June 30, 2014: | |||||||||||||||||||
December 31, 2013 | |||||||||||||||||||
Quoted Prices | Significant | ||||||||||||||||||
Total | in Active Markets | Other | Significant | ||||||||||||||||
Assets | for Identical | Observable | Unobservable | ||||||||||||||||
Assets | Inputs | Inputs | |||||||||||||||||
(Liabilities) | Level (1) | Level (2) | Level (3) | ||||||||||||||||
Foreign Exchange Contracts | $ | 349 | $ | — | $ | 349 | $ | — | |||||||||||
Stock-based Liabilities | $ | (12,462 | ) | $ | (12,462 | ) | $ | — | $ | — | |||||||||
30-Jun-14 | |||||||||||||||||||
Total | Quoted Prices | Significant | Significant | ||||||||||||||||
Assets | in Active Markets | Other | Unobservable | ||||||||||||||||
(Liabilities) | for Identical | Observable | Inputs | ||||||||||||||||
Assets | Inputs | Level (3) | |||||||||||||||||
Level (1) | Level (2) | ||||||||||||||||||
Foreign Exchange Contracts | $ | (2,856 | ) | $ | — | $ | (2,856 | ) | $ | — | |||||||||
Stock-based Liabilities | $ | (16,729 | ) | $ | (16,729 | ) | $ | — | $ | — | |||||||||
Redeemable noncontrolling shareholder interest | $ | (162,195 | ) | $ | — | $ | — | $ | (162,195 | ) | |||||||||
(see Footnote 2 - CCT Agreement) | |||||||||||||||||||
Carrying Amounts and Fair Values of Financial Instruments | ' | ||||||||||||||||||
The carrying amounts and fair values of the Company’s financial instruments are as follows: | |||||||||||||||||||
December 31, 2013 | |||||||||||||||||||
Fair Value Measurements Using | |||||||||||||||||||
Quoted Prices | Significant | ||||||||||||||||||
in Active Markets | Other | Significant | |||||||||||||||||
for Identical | Observable | Unobservable | |||||||||||||||||
Carrying | Instruments | Inputs | Inputs | ||||||||||||||||
Amount | Level (1) | Level (2) | Level (3) | ||||||||||||||||
Cash and cash equivalents | $ | 397,731 | $ | 397,731 | $ | — | $ | — | |||||||||||
Notes receivable | 86,965 | 86,965 | — | — | |||||||||||||||
Restricted cash | 2,759 | 2,759 | |||||||||||||||||
Notes payable | (22,105 | ) | (22,105 | ) | — | — | |||||||||||||
Current portion of long-term debt | (17,868 | ) | (17,868 | ) | — | — | |||||||||||||
Long-term debt | (320,959 | ) | (334,759 | ) | — | — | |||||||||||||
30-Jun-14 | |||||||||||||||||||
Fair Value Measurements Using | |||||||||||||||||||
Quoted Prices | Significant | ||||||||||||||||||
in Active Markets | Other | Significant | |||||||||||||||||
for Identical | Observable | Unobservable | |||||||||||||||||
Carrying | Instruments | Inputs | Inputs | ||||||||||||||||
Amount | Level (1) | Level (2) | Level (3) | ||||||||||||||||
Cash and cash equivalents | $ | 326,636 | $ | 326,636 | $ | — | $ | — | |||||||||||
Notes receivable | 83,241 | 83,241 | — | — | |||||||||||||||
Restricted cash | 1,016 | 1,016 | — | — | |||||||||||||||
Notes payable | (24,478 | ) | (24,478 | ) | — | — | |||||||||||||
Current portion of long-term debt | (15,671 | ) | (15,671 | ) | — | — | |||||||||||||
Long-term debt | (326,188 | ) | (356,988 | ) | — | — |
Business_Segments_Tables
Business Segments (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||
Information on Operating Segments | ' | ||||||||||||||||
The following table details information on the Company’s operating segments. | |||||||||||||||||
Three months ended June 30 | Six months ended June 30 | ||||||||||||||||
2013 | 2014 | 2013 | 2014 | ||||||||||||||
Revenues: | |||||||||||||||||
North American Tire | |||||||||||||||||
External customers | $ | 607,075 | $ | 624,999 | $ | 1,193,951 | $ | 1,168,959 | |||||||||
Intercompany | 16,110 | 14,235 | 31,508 | 33,769 | |||||||||||||
623,185 | 639,234 | 1,225,459 | 1,202,728 | ||||||||||||||
International Tire | |||||||||||||||||
External customers | 277,052 | 263,686 | 551,856 | 516,184 | |||||||||||||
Intercompany | 76,218 | 63,134 | 142,445 | 120,582 | |||||||||||||
353,270 | 326,820 | 694,301 | 636,766 | ||||||||||||||
Eliminations | (92,329 | ) | (77,369 | ) | (173,953 | ) | (154,351 | ) | |||||||||
Net sales | $ | 884,126 | $ | 888,685 | $ | 1,745,807 | $ | 1,685,143 | |||||||||
Segment profit (loss): | |||||||||||||||||
North American Tire | $ | 59,213 | $ | 64,833 | $ | 130,619 | $ | 133,462 | |||||||||
International Tire | 29,229 | 26,459 | 59,239 | 49,607 | |||||||||||||
Eliminations | 117 | (1,640 | ) | 1,164 | (1,258 | ) | |||||||||||
Unallocated corporate charges | (19,393 | ) | (13,063 | ) | (25,192 | ) | (24,311 | ) | |||||||||
Operating profit | 69,166 | 76,589 | 165,830 | 157,500 | |||||||||||||
Interest expense | (7,231 | ) | (6,792 | ) | (14,332 | ) | (13,910 | ) | |||||||||
Interest income | 141 | 270 | 437 | 783 | |||||||||||||
Other - income (expense) | (834 | ) | 477 | (239 | ) | 466 | |||||||||||
Income before income taxes | $ | 61,242 | $ | 70,544 | $ | 151,696 | $ | 144,839 | |||||||||
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ||||||||||||||||
Stock Based Compensation Expense | ' | ||||||||||||||||
The following table discloses the amount of stock based compensation expense for the three- month and six-month periods ended June 30, 2013 and 2014: | |||||||||||||||||
Three months ended June 30 | Six months ended June 30 | ||||||||||||||||
2013 | 2014 | 2013 | 2014 | ||||||||||||||
Stock options | $ | 1,002 | $ | 1,075 | $ | 1,973 | $ | 2,089 | |||||||||
Restricted stock units | 280 | 153 | 559 | 309 | |||||||||||||
Performance stock units | 1,361 | 948 | 1,929 | 1,214 | |||||||||||||
Total stock based compensation | $ | 2,643 | $ | 2,176 | $ | 4,461 | $ | 3,612 | |||||||||
Weighted-Average Assumptions | ' | ||||||||||||||||
The fair value of these options was estimated at the date of grant using a Black-Scholes option pricing model with the following weighted-average assumptions: | |||||||||||||||||
2013 | 2014 | ||||||||||||||||
Risk-free interest rate | 1.17 | % | 2 | % | |||||||||||||
Dividend yield | 1.7 | % | 1.8 | % | |||||||||||||
Expected volatility of the Company’s common stock | 0.646 | 0.64 | |||||||||||||||
Expected life in years | 6 | 6 | |||||||||||||||
Details of Stock Options Activity | ' | ||||||||||||||||
The following table provides details of the stock option activity for the six months ended June 30, 2014: | |||||||||||||||||
Number of | |||||||||||||||||
Shares | |||||||||||||||||
Outstanding at January 1, 2014 | 1,710,244 | ||||||||||||||||
Granted | 380,064 | ||||||||||||||||
Exercised | (121,419 | ) | |||||||||||||||
Expired | (53,000 | ) | |||||||||||||||
Cancelled | (13,414 | ) | |||||||||||||||
Outstanding at June 30, 2014 | 1,902,475 | ||||||||||||||||
Exercisable | 1,119,451 | ||||||||||||||||
Details of Nonvested Restricted Stock Units Activity | ' | ||||||||||||||||
The following table provides details of the nonvested RSU activity for the six months ended June 30, 2014: | |||||||||||||||||
Number of | |||||||||||||||||
Restricted | |||||||||||||||||
Units | |||||||||||||||||
Nonvested at January 1, 2014 | 60,686 | ||||||||||||||||
Vested | (29,028 | ) | |||||||||||||||
Accrued dividend equivalents | 394 | ||||||||||||||||
Nonvested at June 30, 2014 | 32,052 | ||||||||||||||||
Performance Based Units Earned under Long-Term Incentive Plan | ' | ||||||||||||||||
The following table provides details of the nonvested PSUs under the Company’s Long-Term Incentive Plans: | |||||||||||||||||
Performance stock units outstanding at January 1, 2014 | 156,772 | ||||||||||||||||
Cancelled | (2,104 | ) | |||||||||||||||
Accrued dividend equivalents | 1,316 | ||||||||||||||||
Performance stock units outstanding at June 30, 2014 | 155,984 | ||||||||||||||||
Pensions_and_Postretirement_Be1
Pensions and Postretirement Benefits Other than Pensions (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Compensation And Retirement Disclosure [Abstract] | ' | ||||||||||||||||
Components of Net Periodic Benefit Costs | ' | ||||||||||||||||
The following tables disclose the amount of net periodic benefit costs for the Company’s defined benefit plans and other postretirement benefits relating to continuing operations: | |||||||||||||||||
Pension Benefits - Domestic | |||||||||||||||||
Three months ended June 30 | Six months ended June 30 | ||||||||||||||||
2013 | 2014 | 2013 | 2014 | ||||||||||||||
Components of net periodic benefit cost: | |||||||||||||||||
Service cost | $ | 2,970 | $ | 2,440 | $ | 5,940 | $ | 4,880 | |||||||||
Interest cost | 9,657 | 10,710 | 19,314 | 21,421 | |||||||||||||
Expected return on plan assets | (11,889 | ) | (13,136 | ) | (23,778 | ) | (26,271 | ) | |||||||||
Amortization of actuarial loss | 11,086 | 7,006 | 22,172 | 14,011 | |||||||||||||
Net periodic benefit cost | $ | 11,824 | $ | 7,020 | $ | 23,648 | $ | 14,041 | |||||||||
Pension Benefits - International | |||||||||||||||||
Three months ended June 30 | Six months ended June 30 | ||||||||||||||||
2013 | 2014 | 2013 | 2014 | ||||||||||||||
Components of net periodic benefit cost: | |||||||||||||||||
Service cost | $ | 3 | $ | 3 | $ | 6 | $ | 6 | |||||||||
Interest cost | 3,841 | 5,009 | 7,727 | 9,935 | |||||||||||||
Expected return on plan assets | (3,674 | ) | (5,100 | ) | (7,392 | ) | (10,115 | ) | |||||||||
Amortization of actuarial loss | 904 | 2,158 | 1,818 | 4,280 | |||||||||||||
Net periodic benefit cost | $ | 1,074 | $ | 2,070 | $ | 2,159 | $ | 4,106 | |||||||||
Other Postretirement Benefits | |||||||||||||||||
Three months ended June 30 | Six months ended June 30 | ||||||||||||||||
2013 | 2014 | 2013 | 2014 | ||||||||||||||
Components of net periodic benefit cost: | |||||||||||||||||
Service cost | $ | 954 | $ | 601 | $ | 1,907 | $ | 1,202 | |||||||||
Interest cost | 2,698 | 2,826 | 5,396 | 5,652 | |||||||||||||
Amortization of prior service cost | (142 | ) | (141 | ) | (284 | ) | (283 | ) | |||||||||
Amortization of actuarial loss | 479 | — | 958 | — | |||||||||||||
Net periodic benefit cost | $ | 3,989 | $ | 3,286 | $ | 7,977 | $ | 6,571 | |||||||||
Stockholders_Equity_Tables
Stockholders' Equity (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||
Reconciliation of Beginning and End of Period Equity Accounts | ' | ||||||||||||||||
The following table reconciles the beginning and end of the period equity accounts attributable to Cooper Tire & Rubber Company and to the noncontrolling shareholders’ interests: | |||||||||||||||||
Total Equity | |||||||||||||||||
Noncontrolling | |||||||||||||||||
Redeemable | Total | Shareholder | |||||||||||||||
Noncontrolling | Parent | Interest in | Total | ||||||||||||||
Shareholder | Stockholders’ | Consolidated | Stockholders’ | ||||||||||||||
Interest | Equity | Subsidiary | Equity | ||||||||||||||
Balance at December 31, 2013 | $ | — | $ | 990,866 | $ | 166,759 | $ | 1,157,625 | |||||||||
Reclassification of redeemable noncontrolling shareholder interest | 152,250 | (28,285 | ) | (123,965 | ) | (152,250 | ) | ||||||||||
Net income | 10,937 | 83,616 | 1,933 | 85,549 | |||||||||||||
Other comprehensive income | (992 | ) | 8,451 | 19 | 8,470 | ||||||||||||
Dividends payable to noncontrolling shareholders | — | — | (2,570 | ) | (2,570 | ) | |||||||||||
Stock compensation plans | — | 4,984 | — | 4,984 | |||||||||||||
Cash dividends - $.210 per share | — | (13,332 | ) | — | (13,332 | ) | |||||||||||
Balance at June 30, 2014 | $ | 162,195 | $ | 1,046,300 | $ | 42,176 | $ | 1,088,476 | |||||||||
Changes_in_Cumulative_Other_Co1
Changes in Cumulative Other Comprehensive Loss by Component (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||
Changes in Cumulative Other Comprehensive Loss by Component | ' | ||||||||||||||||
The following tables present the changes in Cumulative Other Comprehensive Loss by Component for the three- and six-month periods ended June 30, 2014. All amounts are presented net of tax. Amounts in parentheses indicate debits. | |||||||||||||||||
Three Months Ended June 30, 2014 | |||||||||||||||||
Cumulative | Changes | Unrecognized | |||||||||||||||
Currency | in the Fair | Postretirement | |||||||||||||||
Translation | Value of | Benefit | |||||||||||||||
Adjustment | Derivatives | Plans | Total | ||||||||||||||
1-Apr-14 | $ | 56,903 | $ | 2,544 | $ | (465,935 | ) | $ | (406,488 | ) | |||||||
Other comprehensive income (loss) before reclassifications | 4,537 | (2,511 | )(a) | (2,730 | )(c) | (704 | ) | ||||||||||
Amount reclassifed from accumulated other comprehensive loss | — | (321 | )(b) | 5,944 | (d) | 5,623 | |||||||||||
Net current-period other comprehensive income | 4,537 | (2,832 | ) | 3,214 | 4,919 | ||||||||||||
30-Jun-14 | $ | 61,440 | $ | (288 | ) | $ | (462,721 | ) | $ | (401,569 | ) | ||||||
(a) | This amount represents $4,130 of unrealized losses on cash flow hedges, net of tax of $1,619, that were recognized in Other Comprehensive Loss (see Footnote 4 for additional details). | ||||||||||||||||
(b) | This amount represents $401 of gains on cash flow hedges, net of tax of $80, that were reclassified out of Cumulative Other Comprehensive Loss and are included in Other income on the Condensed Consolidated Statements of Income (see Footnote 4 for additional details). | ||||||||||||||||
(c) | This amount represents $3,455 of other comprehensive loss, net of tax of $725, that was recognized in Other Comprehensive Loss. | ||||||||||||||||
(d) | This amount represents amortization of prior service credit of $141 and amortization of actuarial losses of ($9,164), net of tax of $3,079, that were reclassified out of Cumulative Other Comprehensive Loss and are included in the computation of net periodic benefit cost (see Footnote 8 for additional details). | ||||||||||||||||
Six Months Ended June 30, 2014 | |||||||||||||||||
Cumulative | Changes | Unrecognized | |||||||||||||||
Currency | in the Fair | Postretirement | |||||||||||||||
Translation | Value of | Benefit | |||||||||||||||
Adjustment | Derivatives | Plans | Total | ||||||||||||||
31-Dec-13 | $ | 59,660 | $ | 1,615 | $ | (471,295 | ) | $ | (410,020 | ) | |||||||
Other comprehensive income (loss) before reclassifications | 1,780 | (1,041 | )(a) | (3,242 | )(c) | (2,503 | ) | ||||||||||
Amount reclassifed from accumulated other comprehensive loss | — | (862 | )(b) | 11,816 | (d) | 10,954 | |||||||||||
Net current-period other comprehensive income (loss) | 1,780 | (1,903 | ) | 8,574 | 8,451 | ||||||||||||
30-Jun-14 | $ | 61,440 | $ | (288 | ) | $ | (462,721 | ) | $ | (401,569 | ) | ||||||
(a) | This amount represents $1,689 of unrealized losses on cash flow hedges, net of tax of $648, that were recognized in Other Comprehensive Loss (see Footnote 4 for additional details). | ||||||||||||||||
(b) | This amount represents $1,300 of gains on cash flow hedges, net of tax of $438, that were reclassified out of Cumulative Other Comprehensive Loss and are included in Other income on the Condensed Consolidated Statements of Income (see Footnote 4 for additional details). | ||||||||||||||||
(c) | This amount represents $4,120 of other comprehensive loss, net of tax of $878, that was recognized in Other Comprehensive Loss. | ||||||||||||||||
(d) | This amount represents amortization of prior service credit of $283 and amortization of actuarial losses of ($18,291), net of tax of $6,192, that were reclassified out of Cumulative Other Comprehensive Loss and are included in the computation of net periodic benefit cost (see Footnote 8 for additional details). |
Comprehensive_Income_Attributa1
Comprehensive Income Attributable to Noncontrolling Shareholders' Interests (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Text Block [Abstract] | ' | ||||||||||||||||
Comprehensive Income Attributable to Noncontrolling Shareholders' Interests | ' | ||||||||||||||||
The following table provides the details of the comprehensive income attributable to noncontrolling shareholders’ interests: | |||||||||||||||||
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||
2013 | 2014 | 2013 | 2014 | ||||||||||||||
Net income attributable to noncontrolling shareholders’ interests | $ | 6,114 | $ | 6,576 | $ | 12,871 | $ | 12,870 | |||||||||
Other comprehensive income: | |||||||||||||||||
Currency translation adjustments | (52 | ) | 207 | 1,751 | (973 | ) | |||||||||||
Comprehensive income attributable to noncontrolling shareholders’ interests | $ | 6,062 | $ | 6,783 | $ | 14,622 | $ | 11,897 | |||||||||
Product_Warranty_Liabilities_T
Product Warranty Liabilities (Tables) | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Guarantees [Abstract] | ' | ||||||||
Summary of Activity in Product Warranty Liabilities | ' | ||||||||
The following table summarizes the activity in the Company’s product warranty liabilities: | |||||||||
2013 | 2014 | ||||||||
Reserve at January 1 | $ | 30,139 | $ | 30,853 | |||||
Additions | 9,712 | 9,772 | |||||||
Payments | (9,323 | ) | (9,358 | ) | |||||
Reserve at June 30 | $ | 30,528 | $ | 31,267 | |||||
Basis_of_Presentation_and_Cons2
Basis of Presentation and Consolidation - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2014 | |
Consolidation And Basis Of Presentation [Line Items] | ' |
Minimum percentage of investment consolidated | 50.00% |
Maximum percentage of cost method investments | 20.00% |
Minimum [Member] | ' |
Consolidation And Basis Of Presentation [Line Items] | ' |
Equity investments ownership percentage | 20.00% |
Maximum [Member] | ' |
Consolidation And Basis Of Presentation [Line Items] | ' |
Equity investments ownership percentage | 50.00% |
CCT_Agreement_Additional_Infor
CCT Agreement - Additional Information (Detail) (USD $) | 6 Months Ended |
In Thousands, unless otherwise specified | Jun. 30, 2014 |
Merger Related Items [Line Items] | ' |
Number of days for Noncontrolling shareholder option price determined | '45 days |
Period in which Option price lapse | '90 days |
CCT Agreement [Member] | ' |
Merger Related Items [Line Items] | ' |
Minimum value of joint venture | 435,000 |
Increase in shareholders interest | 152,250 |
Adjustment to the noncontrolling shareholders interest liability | 28,285 |
Changsha Group Company Ltd [Member] | CCT Agreement [Member] | ' |
Merger Related Items [Line Items] | ' |
Purchase of equity interest | 65.00% |
Sale of equity interest | 35.00% |
Company's equity ownership percentage | 65.00% |
Noncontrolling interest's equity ownership percentage | 35.00% |
Earnings_Per_Share_Computation
Earnings Per Share - Computation of Basic and Diluted Earnings Per Share (Detail) (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 |
Numerator | ' | ' | ' | ' |
Numerator for basic and diluted earnings per share - Net income attributable to common stockholders | $38,182 | $35,486 | $83,616 | $91,566 |
Denominator | ' | ' | ' | ' |
Denominator for basic earnings per share - weighted average shares outstanding | 63,537 | 63,342 | 63,468 | 63,284 |
Effect of dilutive securities - stock options and other stock units | 944 | 800 | 942 | 879 |
Denominator for diluted earnings per share - adjusted weighted average shares outstanding | 64,481 | 64,142 | 64,410 | 64,163 |
Basic earnings per share: | ' | ' | ' | ' |
Net income attributable to Cooper Tire & Rubber Company common stockholders | $0.60 | $0.56 | $1.32 | $1.45 |
Diluted earnings per share: | ' | ' | ' | ' |
Net income attributable to Cooper Tire & Rubber Company common stockholders | $0.59 | $0.55 | $1.30 | $1.43 |
Earnings_Per_Share_Additional_
Earnings Per Share - Additional Information (Detail) | 6 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Earnings Per Share [Abstract] | ' | ' |
Common stock not included in the computation of diluted share | 0 | 0 |
Fair_Value_of_Financial_Instru2
Fair Value of Financial Instruments - Additional Information (Detail) (USD $) | 0 Months Ended | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 |
Fair Values Of Financial Assets And Liabilities Including Derivative Financial Instruments [Line Items] | ' | ' | ' |
Maturities of forward contracts | ' | ' | '12 months |
Effective portion of change in fair value of foreign currency forward contracts | ($2,591) | $398 | ' |
Foreign Exchange Contracts [Member] | ' | ' | ' |
Fair Values Of Financial Assets And Liabilities Including Derivative Financial Instruments [Line Items] | ' | ' | ' |
Notional amount of the foreign currency derivative instruments | $162,704 | $148,036 | 162,704 |
Fair_Value_of_Financial_Instru3
Fair Value of Financial Instruments - Fair Value of Gross Position of Derivative Contracts in Condensed Consolidated Balance Sheets (Detail) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | Accrued Liabilities [Member] | Other Current Assets [Member] | Designated as Hedging Instruments [Member] | Designated as Hedging Instruments [Member] | Designated as Hedging Instruments [Member] | Designated as Hedging Instruments [Member] | Designated as Hedging Instruments [Member] | Designated as Hedging Instruments [Member] | Not Designated as Hedging Instruments [Member] | Not Designated as Hedging Instruments [Member] | Not Designated as Hedging Instruments [Member] | Not Designated as Hedging Instruments [Member] |
Accrued Liabilities [Member] | Accrued Liabilities [Member] | Accrued Liabilities [Member] | Other Current Assets [Member] | Other Current Assets [Member] | Other Current Assets [Member] | Accrued Liabilities [Member] | Accrued Liabilities [Member] | Other Current Assets [Member] | Other Current Assets [Member] | |||
Gross Amounts Recognized [Member] | Gross Amounts Offset [Member] | Gross Amounts Recognized [Member] | Gross Amounts Offset [Member] | Gross Amounts Recognized [Member] | Gross Amounts Recognized [Member] | |||||||
Derivatives, Fair Value [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Derivatives (Assets)/ liabilities as hedging instruments | ($2,856) | $349 | ($2,691) | ($3,802) | $1,111 | $470 | $2,702 | ($2,232) | ($165) | ($165) | ($121) | ($121) |
Fair_Value_of_Financial_Instru4
Fair Value of Financial Instruments - Gains and Losses on Derivative Instruments in Consolidated Statement of Operations (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Not Designated as Hedging Instruments [Member] | Location of Gain (Loss) Recognized in Income on Derivatives [Member] | Foreign Exchange Contracts [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Amount of Gain (Loss) Recognized in Income on Derivatives | $88 | ($130) | ($44) | ($633) |
Derivatives Designated as Cash Flow Hedges [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Amount of Gain (Loss) Recognized in Other Comprehensive Income on Derivatives (Effective Portion) | -4,130 | 3,210 | -1,689 | 5,242 |
Amount of Gain (Loss) Reclassified from Cumulative Other Comprehensive Loss into Income (Effective Portion) | 401 | 944 | 1,300 | 449 |
Amount of Gain (Loss) Recognized in Income on Derivatives (Ineffective Portion) | ($245) | ($266) | ($173) | ($210) |
Fair_Value_of_Financial_Instru5
Fair Value of Financial Instruments - Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) (Fair Value, Measurements, Recurring [Member], USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Foreign Exchange Contracts [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total Assets (Liabilities) | ($2,856) | $349 |
Stock Based Liabilities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total Assets (Liabilities) | -16,729 | -12,462 |
Redeemable Noncontrolling Shareholder Interest [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total Assets (Liabilities) | -162,195 | ' |
Quoted Prices in Active Markets for Identical Assets Level (1) [Member] | Stock Based Liabilities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total Assets (Liabilities) | -16,729 | -12,462 |
Significant Other Observable Inputs Level (2) [Member] | Foreign Exchange Contracts [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total Assets (Liabilities) | -2,856 | 349 |
Significant Unobservable Inputs Level (3) [Member] | Redeemable Noncontrolling Shareholder Interest [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total Assets (Liabilities) | ($162,195) | ' |
Fair_Value_of_Financial_Instru6
Fair Value of Financial Instruments - Carrying Amounts and Fair Values of Financial Instruments (Detail) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' | ' |
Cash and cash equivalents, Carrying Value | $326,636 | $397,731 | $244,153 | $351,817 |
Notes receivable, Carrying Value | 83,241 | 86,965 | ' | ' |
Restricted cash, Carrying Value | 1,016 | 2,759 | ' | ' |
Notes payable, Carrying Value | -24,478 | -22,105 | ' | ' |
Current portion of long-term debt, Carrying Value | -15,671 | -17,868 | ' | ' |
Long-term debt, Carrying Value | -326,188 | -320,959 | ' | ' |
Quoted Prices in Active Markets for Identical Assets Level (1) [Member] | ' | ' | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' | ' |
Cash and cash equivalents, Fair Value | 326,636 | 397,731 | ' | ' |
Notes receivable, Fair Value Disclosure | 83,241 | 86,965 | ' | ' |
Restricted cash, Fair Value | 1,016 | 2,759 | ' | ' |
Notes payable, Fair Value Disclosure | -24,478 | -22,105 | ' | ' |
Current Portion of long-term debt, Fair Value | -15,671 | -17,868 | ' | ' |
Long-term Debt, Fair Value | ($356,988) | ($334,759) | ' | ' |
Business_Segments_Information_
Business Segments - Information on Operating Segments (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Sales revenue goods net | $888,685 | $884,126 | $1,685,143 | $1,745,807 |
Operating profit | 76,589 | 69,166 | 157,500 | 165,830 |
Interest expense | -6,792 | -7,231 | -13,910 | -14,332 |
Interest income | 270 | 141 | 783 | 437 |
Other - income (expense) | 477 | -834 | 466 | -239 |
Income before income taxes | 70,544 | 61,242 | 144,839 | 151,696 |
Intercompany Eliminations [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Sales revenue goods net | -77,369 | -92,329 | -154,351 | -173,953 |
Operating profit | -1,640 | 117 | -1,258 | 1,164 |
Unallocated Corporate Charges [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Operating profit | -13,063 | -19,393 | -24,311 | -25,192 |
North American Tire [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Sales revenue goods net | 639,234 | 623,185 | 1,202,728 | 1,225,459 |
North American Tire [Member] | Operating Segments [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Operating profit | 64,833 | 59,213 | 133,462 | 130,619 |
North American Tire [Member] | Operating Segments [Member] | External Customers [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Revenues | 624,999 | 607,075 | 1,168,959 | 1,193,951 |
North American Tire [Member] | Intercompany Eliminations [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Revenues | 14,235 | 16,110 | 33,769 | 31,508 |
International Tire [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Sales revenue goods net | 326,820 | 353,270 | 636,766 | 694,301 |
International Tire [Member] | Operating Segments [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Operating profit | 26,459 | 29,229 | 49,607 | 59,239 |
International Tire [Member] | Operating Segments [Member] | External Customers [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Revenues | 263,686 | 277,052 | 516,184 | 551,856 |
International Tire [Member] | Intercompany Eliminations [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Revenues | $63,134 | $76,218 | $120,582 | $142,445 |
Inventories_Additional_Informa
Inventories - Additional Information (Detail) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ' | ' |
Current cost of inventory under FIFO | $510,199 | $432,906 |
Reduction in inventories | $126,374 | $161,436 |
StockBased_Compensation_Stock_
Stock-Based Compensation - Stock Based Compensation Expense (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ' | ' | ' | ' |
Total stock-based compensation | $2,176 | $2,643 | $3,612 | $4,461 |
Stock options [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ' | ' | ' | ' |
Total stock-based compensation | 1,075 | 1,002 | 2,089 | 1,973 |
Restricted stock units [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ' | ' | ' | ' |
Total stock-based compensation | 153 | 280 | 309 | 559 |
Performance stock units [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ' | ' | ' | ' |
Total stock-based compensation | $948 | $1,361 | $1,214 | $1,929 |
StockBased_Compensation_Additi
Stock-Based Compensation - Additional Information (Detail) (USD $) | 6 Months Ended | 1 Months Ended | ||||
Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Feb. 29, 2012 | Feb. 28, 2013 | Feb. 28, 2014 | |
Stock options [Member] | Stock options [Member] | Long-Term Incentive Plan 2012- 2014 [Member] | Long-Term Incentive Plan 2013- 2015 [Member] | Long Term Incentive Plan 2014-2016 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' |
Stock option long term incentive plan granted vesting portion per year | 'One third each year | ' | ' | ' | ' | ' |
Performance stock units granted | 380,064 | ' | ' | 589,934 | 330,639 | 380,064 |
Weighted average fair value units, granted | ' | $12.26 | $12.97 | ' | ' | ' |
StockBased_Compensation_Weight
Stock-Based Compensation - Weighted-Average Assumptions (Detail) | 6 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ' |
Risk-free interest rate | 2.00% | 1.17% |
Dividend yield | 1.80% | 1.70% |
Expected volatility of the Company's common stock | 0.64% | 0.65% |
Expected life in years | '6 years | '6 years |
StockBased_Compensation_Detail
Stock-Based Compensation - Details of Stock Options Activity (Detail) | 6 Months Ended |
Jun. 30, 2014 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' |
Outstanding, Beginning Balance | 1,710,244 |
Number of Shares, Granted | 380,064 |
Number of Shares, Exercised | -121,419 |
Number of Shares, Expired | -53,000 |
Number of Shares, Cancelled | -13,414 |
Outstanding, Ending Balance | 1,902,475 |
Exercisable, Ending Balance | 1,119,451 |
StockBased_Compensation_Detail1
Stock-Based Compensation - Details of Nonvested Restricted Stock Units Activity (Detail) (Restricted stock units [Member]) | 6 Months Ended |
Jun. 30, 2014 | |
Restricted stock units [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Number of Restricted Units Outstanding, Beginning Balance, Nonvested | 60,686 |
Number of Restricted Stock Units, Vested | -29,028 |
Number of Restricted Stock Units , Accrued Dividend Equivalents, Nonvested | 394 |
Number of Restricted Units Outstanding, Ending Balance, Nonvested | 32,052 |
StockBased_Compensation_Perfor
Stock-Based Compensation - Performance Based Units Earned under Long-Term Incentive Plan (Detail) (Performance stock units [Member]) | 6 Months Ended |
Jun. 30, 2014 | |
Performance stock units [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Number of Restricted Units Outstanding, Beginning Balance, Nonvested | 156,772 |
Number of Restricted Stock Units, Cancelled | -2,104 |
Number of Performance Shares, Accrued dividend equivalents | 1,316 |
Number of Restricted Units Outstanding, Ending Balance, Nonvested | 155,984 |
Pensions_and_Postretirement_Be2
Pensions and Postretirement Benefits Other than Pensions - Components of Net Periodic Benefit Costs (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' |
Amortization of actuarial loss | ($9,164) | ($12,469) | ($18,291) | ($24,948) |
Other Postretirement Benefits [Member] | ' | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' |
Service cost | 601 | 954 | 1,202 | 1,907 |
Interest cost | 2,826 | 2,698 | 5,652 | 5,396 |
Amortization of prior service cost | -141 | -142 | -283 | -284 |
Amortization of actuarial loss | ' | 479 | ' | 958 |
Net periodic benefit cost | 3,286 | 3,989 | 6,571 | 7,977 |
Pension Benefits - Domestic [Member] | ' | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' |
Service cost | 2,440 | 2,970 | 4,880 | 5,940 |
Interest cost | 10,710 | 9,657 | 21,421 | 19,314 |
Expected return on plan assets | -13,136 | -11,889 | -26,271 | -23,778 |
Amortization of actuarial loss | 7,006 | 11,086 | 14,011 | 22,172 |
Net periodic benefit cost | 7,020 | 11,824 | 14,041 | 23,648 |
Pension Benefits - International [Member] | ' | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' |
Service cost | 3 | 3 | 6 | 6 |
Interest cost | 5,009 | 3,841 | 9,935 | 7,727 |
Expected return on plan assets | -5,100 | -3,674 | -10,115 | -7,392 |
Amortization of actuarial loss | 2,158 | 904 | 4,280 | 1,818 |
Net periodic benefit cost | $2,070 | $1,074 | $4,106 | $2,159 |
Stockholders_Equity_Reconcilia
Stockholders' Equity - Reconciliation of Beginning and End of Period Equity Accounts (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Schedule Of Stockholders Equity [Line Items] | ' | ' | ' | ' |
Beginning Balance | ' | ' | $990,866 | ' |
Beginning Balance | ' | ' | 1,157,625 | ' |
Balance at December 31, 2013 | ' | ' | 166,759 | ' |
Reclassification of redeemable noncontrolling shareholder interest | ' | ' | -152,250 | ' |
Net income | 38,182 | 35,486 | 83,616 | 91,566 |
Net income | ' | ' | 85,549 | ' |
Other comprehensive income | ' | ' | 8,470 | ' |
Other comprehensive income | 5,126 | 12,065 | 7,478 | 21,197 |
Dividends payable to noncontrolling shareholders | ' | ' | -2,570 | -9,709 |
Stock compensation plans | ' | ' | 4,984 | ' |
Ending Balance | 162,195 | ' | 162,195 | ' |
Balance at June 30, 2014 | 42,176 | ' | 42,176 | ' |
Cash dividends - $.210 per share | ' | ' | -13,332 | ' |
Ending Balance | 1,046,300 | ' | 1,046,300 | ' |
Ending balance | 1,088,476 | ' | 1,088,476 | ' |
Noncontrolling Shareholder Interest in Consolidated Subsidiary [Member] | ' | ' | ' | ' |
Schedule Of Stockholders Equity [Line Items] | ' | ' | ' | ' |
Balance at December 31, 2013 | ' | ' | 166,759 | ' |
Reclassification of redeemable noncontrolling shareholder interest | ' | ' | -123,965 | ' |
Net income | ' | ' | 1,933 | ' |
Other comprehensive income | ' | ' | 19 | ' |
Dividends payable to noncontrolling shareholders | ' | ' | -2,570 | ' |
Balance at June 30, 2014 | 42,176 | ' | 42,176 | ' |
Total Parent Stockholders' Equity [Member] | ' | ' | ' | ' |
Schedule Of Stockholders Equity [Line Items] | ' | ' | ' | ' |
Beginning Balance | ' | ' | 990,866 | ' |
Reclassification of redeemable noncontrolling shareholder interest | ' | ' | -28,285 | ' |
Net income | ' | ' | 83,616 | ' |
Other comprehensive income | ' | ' | 8,451 | ' |
Stock compensation plans | ' | ' | 4,984 | ' |
Cash dividends - $.210 per share | ' | ' | -13,332 | ' |
Ending Balance | 1,046,300 | ' | 1,046,300 | ' |
Redeemable Noncontrolling Shareholder Interest [Member] | ' | ' | ' | ' |
Schedule Of Stockholders Equity [Line Items] | ' | ' | ' | ' |
Reclassification of redeemable noncontrolling shareholder interest | ' | ' | 152,250 | ' |
Net income | ' | ' | 10,937 | ' |
Other comprehensive income | ' | ' | -992 | ' |
Ending Balance | $162,195 | ' | $162,195 | ' |
Stockholders_Equity_Reconcilia1
Stockholders' Equity - Reconciliation of Beginning and End of Period Equity Accounts (Parenthetical) (Detail) (USD $) | 6 Months Ended |
Jun. 30, 2014 | |
Equity [Abstract] | ' |
Cash dividends per share | $0.21 |
Changes_in_Cumulative_Other_Co2
Changes in Cumulative Other Comprehensive Loss by Component - Changes in Cumulative Other Comprehensive Loss by Component (Detail) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 |
In Thousands, unless otherwise specified | Cumulative Currency Translation Adjustment [Member] | Cumulative Currency Translation Adjustment [Member] | Changes in the Fair Value of Derivatives [Member] | Changes in the Fair Value of Derivatives [Member] | Unrecognized Postretirement Benefit Plans [Member] | Unrecognized Postretirement Benefit Plans [Member] | Cumulative Other Comprehensive Income (Loss) [Member] | Cumulative Other Comprehensive Income (Loss) [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Beginning balance | ($401,569) | ($410,020) | $56,903 | $59,660 | $2,544 | $1,615 | ($465,935) | ($471,295) | ($406,488) | ($410,020) |
Other comprehensive income (loss) before reclassifications | ' | ' | 4,537 | 1,780 | -2,511 | -1,041 | -2,730 | -3,242 | -704 | -2,503 |
Amount reclassified from accumulated other comprehensive loss | ' | ' | ' | ' | -321 | -862 | 5,944 | 11,816 | 5,623 | 10,954 |
Net current-period other comprehensive income | ' | ' | 4,537 | 1,780 | -2,832 | -1,903 | 3,214 | 8,574 | 4,919 | 8,451 |
Ending balance | ($401,569) | ($410,020) | $61,440 | $61,440 | ($288) | ($288) | ($462,721) | ($462,721) | ($401,569) | ($401,569) |
Changes_in_Cumulative_Other_Co3
Changes in Cumulative Other Comprehensive Loss by Component - Changes in Cumulative Other Comprehensive Loss by Component (Parenthetical) (Detail) (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) [Line Items] | ' | ' | ' | ' |
Amount of gain recognized in other comprehensive loss, tax portion | ($1,699) | $803 | ($1,086) | $1,942 |
Amount of gain reclassified from Cumulative Other Comprehensive Loss | 401 | ' | 1,300 | ' |
Income tax benefit (expense) on derivative instruments | 80 | ' | 438 | ' |
Other comprehensive loss, pre-tax | -3,455 | ' | -4,120 | ' |
Other comprehensive loss, tax | -725 | ' | -878 | ' |
Amortization of prior service credit | 141 | 142 | 283 | 284 |
Amortization of actuarial loss | -9,164 | -12,469 | -18,291 | -24,948 |
Income tax provision on postretirement benefit plans | 3,079 | 4,577 | 6,192 | 9,166 |
Derivatives Designated as Cash Flow Hedges [Member] | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' |
Amount of Gain (Loss) Recognized in Other Comprehensive Income on Derivatives (Effective Portion) | -4,130 | 3,210 | -1,689 | 5,242 |
Amount of gain recognized in other comprehensive loss, tax portion | ($1,619) | ' | ($648) | ' |
Comprehensive_Income_Attributa2
Comprehensive Income Attributable to Noncontrolling Shareholders' Interests - Comprehensive Income Attributable to Noncontrolling Shareholders' Interests (Detail) (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 Stockholders Equity [Abstract] | ' | ' | ' | ' |
Net income attributable to noncontrolling shareholders' interests | $6,576 | $6,114 | $12,870 | $12,871 |
Other comprehensive income: | ' | ' | ' | ' |
Currency translation adjustments | 207 | -52 | -973 | 1,751 |
Comprehensive income attributable to noncontrolling shareholders' interests | $6,783 | $6,062 | $11,897 | $14,622 |
Product_Warranty_Liabilities_S
Product Warranty Liabilities - Summary of Activity in Product Warranty Liabilities (Detail) (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Product Warranties Disclosures [Abstract] | ' | ' |
Reserve, beginning balance | $30,853 | $30,139 |
Additions | 9,772 | 9,712 |
Payments | -9,358 | -9,323 |
Reserve, ending balance | $31,267 | $30,528 |
Contingent_Liabilities_Additio
Contingent Liabilities - Additional Information (Detail) (USD $) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | |
Tire | |||||
Commitments And Contingencies Disclosure [Abstract] | ' | ' | ' | ' | ' |
Minimum estimated sale of passenger, light truck, SUV, radial medium truck and motorcycle tires per year in North America | ' | ' | 30,000,000 | ' | ' |
Maximum estimated sale of passenger, light truck, SUV, radial medium truck and motorcycle tires per year in North America | ' | ' | 35,000,000 | ' | ' |
Estimated number of Company produced tires of different specifications | ' | ' | 300,000,000 | ' | ' |
Minimum costs of resolved cases | ' | ' | $0 | ' | ' |
Maximum costs of resolved cases | ' | ' | 33,000,000 | ' | ' |
Increased its products liability reserve | 14,535,000 | ' | 26,462,000 | ' | ' |
Increase in products liability reserve due to self insured incidents | 12,331,000 | ' | 24,662,000 | ' | ' |
Decrease in products liability reserve due to changes in estimated amounts on existing reserves | -600,000 | ' | -600,000 | ' | ' |
Increase in products liability reserve due to revised estimates of future settlements for unasserted and premature claims | 2,804,000 | ' | 2,400,000 | ' | ' |
Period for resolution of few cases | ' | ' | '5 years | ' | ' |
Company paid to resolve cases and claims | 17,705,000 | ' | 33,259,000 | ' | ' |
Products liability reserve balance | 182,716,000 | ' | 182,716,000 | ' | 189,513,000 |
Current portion products liability reserve balance | 69,891,000 | ' | 69,891,000 | ' | 70,472,000 |
Products liability expenses | $22,111,000 | $21,505,000 | $40,812,000 | $42,202,000 | ' |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Income Tax Disclosure [Line Items] | ' | ' | ' | ' |
Income tax expense | $25,786 | $19,642 | $48,353 | $47,259 |
Effective tax rate for income tax expense | 36.60% | 32.10% | 33.40% | 31.20% |
U.S. federal statutory rate | ' | ' | 35.00% | ' |
Valuation allowance amount | 32,246 | ' | 32,246 | ' |
Liability for uncertain tax positions noncurrent | 5,878 | ' | 5,878 | ' |
U.S. [Member] | ' | ' | ' | ' |
Income Tax Disclosure [Line Items] | ' | ' | ' | ' |
Valuation allowance amount | 22,072 | ' | 22,072 | ' |
Foreign [Member] | ' | ' | ' | ' |
Income Tax Disclosure [Line Items] | ' | ' | ' | ' |
Valuation allowance amount | $10,174 | ' | $10,174 | ' |
Subsequent_Events_Additional_I
Subsequent Events - Additional Information (Detail) (Subsequent Event [Member], ASR Program [Member], USD $) | 6 Months Ended | |
In Millions, unless otherwise specified | Jun. 30, 2014 | Aug. 06, 2014 |
Subsequent Event [Member] | ASR Program [Member] | ' | ' |
Subsequent Event [Line Items] | ' | ' |
Share repurchase, amount authorized | ' | $200 |
Final repurchase date | '2015-02 | ' |