Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Feb. 21, 2017 | Jun. 30, 2016 | |
Document and Entity Information | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | CTS | ||
Entity Registrant Name | CTS CORP | ||
Entity Central Index Key | 26,058 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 32,762,494 | ||
Entity Public Float | $ 584,000,000 |
Consolidated Statements of Earn
Consolidated Statements of Earnings (Loss) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Net Sales | |||
Net sales | $ 396,679 | $ 382,310 | $ 404,021 |
Cost of goods sold | 256,251 | 255,201 | 274,058 |
Gross Margin | 140,428 | 127,109 | 129,963 |
Selling, general and administrative expenses | 61,624 | 59,586 | 61,051 |
Research and development expenses | 24,040 | 22,461 | 22,563 |
Non-recurring environmental expense | 0 | 14,541 | 0 |
Restructuring and impairment char | 3,048 | 14,564 | 5,941 |
Gain (Loss) on Disposition of Property Plant Equipment | (11,450) | (2,156) | (1,915) |
Operating earnings | 63,166 | 18,113 | 42,323 |
Other (expense) income: | |||
Interest expense | (3,702) | (2,628) | (2,326) |
Interest income | 1,305 | 3,073 | 2,786 |
Other expense | (3,524) | (6,297) | (3,435) |
Total other expense, net | (5,921) | (5,852) | (2,975) |
Earnings before taxes | 57,245 | 12,261 | 39,348 |
Income tax expense | 22,865 | 5,307 | 12,826 |
Net earnings | $ 34,380 | $ 6,954 | $ 26,522 |
Basic | |||
Net earnings (loss) per share (usd per share) | $ 1.05 | $ 0.21 | $ 0.79 |
Diluted | |||
Diluted net earnings (loss) per share (usd per share) | $ 1.03 | $ 0.21 | $ 0.78 |
Basic weighted-average common shares outstanding (in shares) | 32,728 | 32,959 | 33,618 |
Effect of dilutive securities (in shares) | 523 | 525 | 512 |
Diluted weighted - average common shares outstanding (in shares) | 33,251 | 33,484 | 34,130 |
Cash dividends declared per share (in dollars per share) | $ 0.16 | $ 0.160 | $ 0.160 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Earnings - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Consolidated Statements of Comprehensive Earnings | |||
Net earnings | $ 34,380 | $ 6,954 | $ 26,522 |
Other comprehensive earnings (loss): | |||
Changes in fair market value of hedges, net of tax | 553 | 157 | (40) |
Changes in unrealized pension cost, net of tax | 6,412 | 6,809 | (21,062) |
Cumulative translation adjustment, net of tax | (1,154) | (1,738) | (1,234) |
Other comprehensive earnings (loss) | 5,811 | 5,228 | (22,336) |
Comprehensive earnings | $ 40,191 | $ 12,182 | $ 4,186 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Current Assets | ||
Cash and cash equivalents | $ 113,805 | $ 156,928 |
Accounts receivable, net | 62,612 | 54,563 |
Inventories, net | 28,652 | 24,600 |
Other current assets | 10,638 | 9,863 |
Total current assets | 215,707 | 245,954 |
Property, plant and equipment, net | 82,111 | 69,872 |
Other Assets | ||
Prepaid pension asset | 46,183 | 33,779 |
Goodwill | 61,744 | 33,865 |
Other intangible assets, net | 64,370 | 34,758 |
Deferred income taxes | 45,839 | 63,809 |
Other assets | 1,743 | 1,336 |
Total other assets | 219,879 | 167,547 |
Total Assets | 517,697 | 483,373 |
Current Liabilities | ||
Short-term Non-bank Loans and Notes Payable | 1,006 | 0 |
Accounts payable | 40,046 | 40,299 |
Accrued payroll and benefits | 11,369 | 7,147 |
Accrued expenses and other liabilities | 45,708 | 47,174 |
Total current liabilities | 98,129 | 94,620 |
Long-term debt | 89,100 | 90,700 |
Long-term pension obligations | 7,006 | 7,230 |
Other long-term obligations | 5,580 | 9,169 |
Total Liabilities | 199,815 | 201,719 |
Shareholders' Equity | ||
Common stock | 302,832 | 300,909 |
Additional contributed capital | 40,521 | 41,166 |
Retained earnings | 410,979 | 381,840 |
Accumulated other comprehensive loss | (93,194) | (99,005) |
Total shareholders' equity before treasury stock | 661,138 | 624,910 |
Treasury stock | (343,256) | (343,256) |
Total shareholders' equity | 317,882 | 281,654 |
Total Liabilities and Shareholders' Equity | $ 517,697 | $ 483,373 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Cash flows from operating activities: | |||
Net earnings | $ 34,380 | $ 6,954 | $ 26,522 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | |||
Depreciation and amortization | 18,992 | 16,254 | 16,971 |
Stock-based compensation | 2,738 | 3,195 | 2,660 |
Restructuring, impairment, and restructuring-related charges | 3,048 | 6,915 | 5,941 |
Restructuring loss on pension settlement | 0 | 8,280 | 0 |
Pension and other post-retirement plan income | (1,599) | (2,451) | (2,290) |
Non-recurring environmental expense | 0 | 14,541 | 0 |
Deferred income taxes | 10,297 | (8,920) | 4,900 |
Gain (Loss) on Disposition of Property Plant Equipment | 11,450 | 2,156 | 1,915 |
Gain (Loss) on Foreign Currency Derivatives Recorded in Earnings, Net | (36) | 0 | 0 |
Changes in assets and liabilities, net of acquisitions and divestitures: | |||
Accounts receivable | (7,120) | 1,036 | 4,356 |
Inventories | (2,290) | 2,225 | 3,437 |
Other assets | (289) | 4,090 | (5,672) |
Accounts payable | 537 | (5,126) | (2,692) |
Accrued Salaries and Benefits | 1,876 | (3,012) | (8,124) |
Accrued expenses | (2,597) | (5,731) | (9,872) |
Income taxes payable | 966 | 5,264 | 262 |
Other liabilities | (52) | 2,502 | 721 |
Pension and other post-retirement plans | (303) | 295 | (414) |
Total adjustments | 12,822 | 32,197 | 6,827 |
Net cash provided by operating activities | 47,202 | 39,151 | 33,349 |
Cash flows from investing activities: | |||
Capital expenditures | (20,500) | (9,723) | (12,949) |
Proceeds from sale of assets | 12,296 | 1,878 | 4,951 |
Payment for acquisitions, net of cash acquired | (73,063) | (1,285) | 0 |
Net cash used in investing activities | (81,267) | (9,130) | (7,998) |
Cash flows from financing activities: | |||
Payments of long-term debt | (2,458,400) | (1,343,500) | (1,030,200) |
Proceeds from borrowings of long-term debt | 2,456,800 | 1,359,200 | 1,030,200 |
Payments of short-term notes payable | 0 | (164) | (810) |
Proceeds from borrowings of short-term notes payable | 0 | 164 | 810 |
Purchase of treasury stock | 0 | (18,088) | (8,002) |
Dividends paid | (5,234) | (5,291) | (5,374) |
Exercise of stock options | 0 | 64 | 1,204 |
Excess tax benefit on equity-based compensation | 0 | 313 | 297 |
Payments Related to Tax Withholding for Share-based Compensation | (1,809) | (527) | (926) |
Other | 0 | 0 | (3,132) |
Net cash used in financing activities | (8,643) | (7,829) | (15,933) |
Effect of exchange rate on cash and cash equivalents | (415) | 228 | 722 |
Net (decrease) increase in cash and cash equivalents | (43,123) | 22,420 | 10,140 |
Cash and cash equivalents at beginning of year | 156,928 | 134,508 | 124,368 |
Cash and cash equivalents at end of year | 113,805 | 156,928 | 134,508 |
Supplemental cash flow information: | |||
Cash paid for interest | 2,939 | 2,415 | 2,113 |
Cash paid for income taxes, net | 10,471 | 6,779 | 7,994 |
Cash Flow, Noncash Investing and Financing Activities Disclosure [Abstract] | |||
Notes Issued | $ 1,006 | $ 0 | $ 0 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Contributed Capital | Retained Earnings | Accumulated Other Comprehensive Earnings/(Loss) | Treasury Stock |
Beginning Balance at Dec. 31, 2013 | $ 296,729 | $ 297,164 | $ 39,631 | $ 358,997 | $ (81,897) | $ (317,166) |
Increase (Decrease) in Stockholders' Equity | ||||||
Net (loss) earnings | 26,522 | 26,522 | ||||
Changes in fair market value of hedges, net of tax | (40) | (40) | ||||
Changes in unrealized pension cost, net of tax | (21,062) | (21,062) | ||||
Cumulative translation adjustment, net of tax | (1,234) | (1,234) | ||||
Cash dividends | (5,374) | (5,374) | ||||
Acquired shares for treasury stock | (8,002) | (8,002) | ||||
Issued shares on exercise of options — net | 1,204 | 1,328 | (124) | |||
Issued shares on vesting of restricted stock units | (1,911) | 1,400 | (3,311) | |||
Tax benefit on vesting of restricted stock units | 297 | 297 | ||||
Stock compensation | 2,660 | 2,660 | ||||
Ending balance at Dec. 31, 2014 | 289,789 | 299,892 | 39,153 | 380,145 | (104,233) | (325,168) |
Increase (Decrease) in Stockholders' Equity | ||||||
Net (loss) earnings | 6,954 | 6,954 | ||||
Changes in fair market value of hedges, net of tax | 157 | 157 | ||||
Changes in unrealized pension cost, net of tax | 6,809 | 6,809 | ||||
Cumulative translation adjustment, net of tax | (1,738) | (1,738) | ||||
Cash dividends | (5,259) | (5,259) | ||||
Acquired shares for treasury stock | (18,088) | (18,088) | ||||
Issued shares on exercise of options — net | 64 | 64 | 0 | |||
Issued shares on vesting of restricted stock units | (542) | 953 | (1,495) | |||
Tax benefit on vesting of restricted stock units | 313 | 313 | ||||
Stock compensation | 3,195 | 3,195 | ||||
Ending balance at Dec. 31, 2015 | 281,654 | 300,909 | 41,166 | 381,840 | (99,005) | (343,256) |
Increase (Decrease) in Stockholders' Equity | ||||||
Net (loss) earnings | 34,380 | 34,380 | ||||
Changes in fair market value of hedges, net of tax | 553 | 553 | ||||
Changes in unrealized pension cost, net of tax | 6,412 | 6,412 | ||||
Cumulative translation adjustment, net of tax | (1,154) | (1,154) | ||||
Cash dividends | (5,241) | (5,241) | ||||
Issued shares on vesting of restricted stock units | (1,384) | 1,923 | (3,307) | |||
Stock compensation | 2,662 | 2,662 | ||||
Ending balance at Dec. 31, 2016 | $ 317,882 | $ 302,832 | $ 40,521 | $ 410,979 | $ (93,194) | $ (343,256) |
Consolidated Statements of Sha7
Consolidated Statements of Shareholders Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Increase (Decrease) in Stockholders' Equity | |||
Cash dividends declared per share (in dollars per share) | $ 0.16 | $ 0.160 | $ 0.160 |
Treasury stock acquired (shares) | 0 | 984,342 | 460,496 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Description of Business: CTS Corporation ("CTS", "we", "our", "us" or the "Company") is a global manufacturer of sensors, electronic components, and actuators. We operate manufacturing facilities located throughout North America, Asia and Europe and services major markets globally. CTS consists of one reportable business segment. Principles of Consolidation: The consolidated financial statements include the accounts of CTS and its wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated. Fiscal Calendar: Beginning in 2016, we began using a calendar period end. Prior to 2016, we operated on a 4 week/ 4 week/ 5 week fiscal quarter, and each fiscal quarter ended on a Sunday. The fiscal year always began on January 1 and ended on December 31. Our fiscal calendar resulted in some fiscal quarters being either greater than or less than 13 weeks, depending on the days of the week on which those dates fell. Use of Estimates: The preparation of financial statements in conformity with the accounting principles generally accepted in the United States of America ("U.S. GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from those estimates. Cash and Cash Equivalents: All highly liquid investments with maturities of three months or less at the date of purchase are considered to be cash equivalents. Accounts Receivable and Allowance for Doubtful Accounts: Accounts receivable consists primarily of amounts due from normal business activities. We maintain an allowance for doubtful accounts for estimated uncollectible accounts receivable. Our reserves for estimated credit losses based upon historical experience and specific customer collection issues. Accounts are written off against the allowance account when they are determined to no longer be collectible. Concentration of Credit Risk: Financial instruments that potentially subject us to concentrations of credit risk consist of cash and cash equivalents. Our cash and cash equivalents, at times, may exceed federally insured limits. Cash and cash equivalents are deposited primarily in banking institutions with global operations. We have not experienced any losses in such accounts. We believe we are not exposed to any significant credit risk on cash and cash equivalents. Trade receivables subject us to the potential for credit risk with major customers. We sell our products to customers principally in the transportation, industrial, medical, information technology, defense and aerospace, and communications markets, primarily in North America, Europe, and Asia. We perform ongoing credit evaluations of our customers to minimize credit risk. We do not require collateral. The allowance for doubtful accounts is based on management's estimates of the collectability of its accounts receivable after analyzing historical bad debts, customer concentrations, customer creditworthiness, and current economic trends. Uncollectible trade receivables are charged against the allowance for doubtful accounts when all reasonable efforts to collect the amounts due have been exhausted. Our net sales to significant customers as a percentage of total net sales were as follows: Years Ended December 31, 2016 2015 2014 Honda Motor Co. 10.7% 10.7% 10.8% Toyota Motor Corporation 10.4% 10.1% 8.4% We sell pedal and sensor automotive parts to Honda Motor Co. and Toyota Motor Corporation under purchase agreements that have no volume commitments and are subject to purchase orders issued from time to time. No other customer accounted for 10% or more of total net sales during these periods. Inventories: We value our inventories at the lower of the actual cost to purchase or manufacture or the net realizable value using the first-in, first-out ("FIFO") method. We review inventory quantities on hand and record a provision for excess and obsolete inventory based on forecasts of product demand and production requirements. Retirement Plans: We have various defined benefit and defined contribution retirement plans. Our policy is to annually fund the defined benefit pension plans at or above the minimum required by law. We: 1) recognize the funded status of a benefit plan (measured as the difference between plan assets at fair value and the benefit obligation) in our Consolidated Balance Sheets; 2) recognize the gains or losses and prior service costs or credits that arise during the period but are not recognized as components of net periodic benefit/cost as a component of Other comprehensive earnings; and 3) measure defined benefit plan assets and obligations as of the date of our fiscal year-end. See NOTE 5, "Retirement Plans" for further information. Property, Plant and Equipment: Property, plant and equipment is stated at cost. Depreciation and amortization is computed primarily over the estimated useful lives of the various classes of assets using the straight-line method. Useful lives for buildings and improvements range from 10 to 45 years . Machinery and equipment useful lives range from 3 to 8 years . Depreciation on leasehold improvements is computed over the lease term or estimated useful lives of the assets. Amounts expended for maintenance and repairs are charged to expense as incurred. Upon disposition, any related gains or losses are included in operating earnings. Income Taxes: We account for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, we determine deferred tax assets and liabilities on the basis of the differences between the financial statement and tax bases of assets and liabilities by using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. We recognize deferred tax assets to the extent that we believe that these assets are more-likely-than-not to be realized. In making such a determination, we consider all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. If we determine that we would be able to realize our deferred tax assets in the future in excess of their net recorded amount, we would make an adjustment to the deferred tax asset valuation allowance, which would reduce the provision for income taxes. In 2016, we elected to early adopt ASU 2015-17 "Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes", on a retrospective basis allowing for all deferred tax items to be classified as non-current. The non-current deferred tax assets and non-current deferred tax liabilities were not netted since these items relate to different tax jurisdictions. We record uncertain tax positions in accordance with ASC 740 on the basis of a two-step process in which (1) we determine whether it is more-likely-than-not that the tax positions will be sustained on the basis of the technical merits of the position and (2) for those tax positions that meet the more-likely-than-not recognition threshold, we recognize the largest amount of tax benefit that is more than 50 percent likely to be realized upon ultimate settlement with the related tax authority. We recognize interest and penalties related to unrecognized tax benefits on the income tax expense line in the accompanying Consolidated Statements of Operations. Accrued interest and penalties are included on the related tax liability line in the Consolidated Balance Sheets. See NOTE 17, "Income Taxes" for further information. Goodwill and Indefinite-lived Intangible Assets: Goodwill represents the excess of the purchase price over the fair values of the net assets acquired in a business combination. We test the impairment of goodwill at least annually, or more frequently if events or changes in circumstances indicate that the carrying value may not be recoverable. The impairment evaluation utilizes a two-step test. The first step compares the fair value of each reporting unit to its carrying value, including goodwill. If the fair value of the reporting unit is equal to or greater than its carrying value, goodwill is not impaired and no further testing is required. If the carrying value exceeds fair value, then the second step of the impairment test is performed in order to determine if the implied fair value of the goodwill of the reporting unit exceeds the carrying value of that goodwill. Goodwill is impaired when the carrying value of the goodwill exceeds its implied fair value. Impaired goodwill is written down to its implied fair value through a non-cash expense recorded in results of operations in the period the impairment is identified. In 2015, we changed the date of our annual impairment test from the last day of our fiscal year to the first day of our fourth quarter. This change did not have a material effect on the results of our impairment test. We completed our annual impairment test during 2016 and determined that our goodwill was not impaired as of the measurement date. No goodwill impairment was recorded for the years ended December 31, 2016, 2015 and 2014. We also have acquired in-process research and development ("IPR&D") intangible assets that are treated as indefinite-lived intangible assets and therefore not subject to amortization until the completion or abandonment of the associated research and development efforts. If these efforts are abandoned in the future, the carrying value of the IPR&D asset will be expensed. If the research and development efforts are successfully completed, the IPR&D will be reclassified as a finite-lived asset and amortized over its useful life. No impairment was recorded for the years ended December 31, 2016, 2015 and 2014. Other Intangible Assets and Long-lived Assets: We account for long-lived assets (excluding indefinite-lived intangible assets) in accordance with the provisions of ASC 360. This statement requires that long-lived assets, which includes fixed assets and finite-lived intangible assets, be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If an impairment test is warranted, recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the sum of the undiscounted cash flows expected to result from the use and the eventual disposition of the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount in which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell. Intangible assets (excluding indefinite-lived intangible assets) consist primarily of customer lists and relationships, patents, technology, and other intangibles. These assets are recorded at cost and usually amortized on a straight-line basis over their estimated lives. We assess useful lives based on the period over which the asset is expected to contribute to cash flows. Revenue Recognition: Product revenue is recognized once four criteria are met: 1) We have persuasive evidence that an arrangement exists; 2) delivery has occurred and title has passed to the customer, which generally happens at the point of shipment provided that no significant obligations remain; 3) the price is fixed and determinable; and 4) collectability is reasonably assured. Research and Development: Research and development ("R&D") costs include expenditures for planned search and investigation aimed at discovery of new knowledge to be used to develop new products or processes or to significantly enhance existing products or production processes. R&D costs also include the implementation of new knowledge through design, testing of product alternatives, or construction of prototypes. We expense all R&D costs as incurred, net of customer reimbursements for sales of prototypes and non-recurring engineering charges. We create prototypes and tools related to R&D projects. A prototype is defined as a constructed product not intended for production resulting in a commercial sale. We also incur engineering costs related to R&D activities. Such costs are incurred to support such activities to improve the reliability, performance and cost-effectiveness of our existing products and to design and develop innovative products that meet customer requirements for new applications. Furthermore, we may engage in activities that develop tooling machinery and equipment for our customers. Costs of molds, dies and other tools used to make products sold for which we have a contractual guarantee for lump sum reimbursement from the customer are included in Other current assets on the Consolidated Balance Sheets until reimbursement is received from the customer. A summary of amounts to be received from customers is as follows: December 31, 2016 2015 Cost of molds, dies and other tools included in Other current assets $ 2,837 $ 3,969 Reimbursements received from customers are netted against such costs. A summary of amounts received from customers is as follows: Years Ended December 31, 2016 2015 2014 Reimbursements received from customers $ 2,036 $ 1,861 $ 1,400 Financial Instruments: We use forward contracts to mitigate currency risk related to forecasted foreign currency revenue and costs. These forward contracts are designed as cash flow hedges. At least quarterly, we assess the effectiveness of these hedging relationships based on the total change in their fair value using regression analysis. In addition, we use interest rate swaps to convert a portion of our revolving credit facility's variable rate of interest into a fixed rate. As a result of the use of these derivative instruments, the Company is exposed to the risk that counterparties to derivative contracts will fail to meet their contractual obligations. To mitigate the counterparty credit risk, the Company has a policy of only entering into contracts with carefully selected major financial institutions based upon their credit ratings and other factors and by using netting agreements. Our established policies and procedures for mitigating credit risk on principal transactions include reviewing and establishing limits for credit exposure and continually assessing the creditworthiness of counterparties. We estimate the fair value of our financial instruments as follows: Instrument Method for determining fair value Cash, cash equivalents, accounts receivable and accounts payable Cost, approximates fair value due to the short-term nature of these instruments. Revolving credit facility The fair value of long-term debt approximates carrying value and was determined by valuing a similar hypothetical coupon bond and attributing that value to our credit facility. Interest rate swaps and forward contracts The fair value of our interest rate swaps and forward contracts are measured using a market approach which uses current industry information. Debt Issuance Costs: We have debt issuance costs related to our long-term debt that is being amortized using the straight-line method over the life of the debt. Stock-Based Compensation: We recognize expense related to the fair value of stock-based compensation awards, consisting of restricted stock units ("RSUs"), cash-settled restricted stock units, and stock options, in the Consolidated Statements of Earnings. We estimate the fair value of stock option awards on the date of grant using the Black-Scholes option pricing model. A number of assumptions are used by the Black-Scholes option pricing model to compute the grant date fair value of an award, including expected price volatility, option term, risk-free interest rate, and dividend yield. These assumptions are established at each grant date based upon current information at that time. Expected volatilities are based on historical volatilities of CTS' common stock. The expected option term is derived from historical data of exercise behavior. Actual option terms can differ from the expected option terms as a result of different groups of employees exhibiting different exercise behavior. The dividend yield is based on historical dividend payments. The risk-free rate for periods within the contractual life of the option is based on the U.S. Treasury yield curve at the time of grant. The fair value of awards that are ultimately expected to vest is recognized as expense over the requisite service periods of the awards in the Consolidated Statements of Earnings. The grant date fair values of our service-based and performance-based RSUs are the closing price of our common stock on the date of grant. The grant date fair value of our market-based RSUs is determined by using a simulation, or Monte Carlo, approach. Under this approach, stock returns from a comparative group of companies are simulated over the performance period, considering both stock price volatility and the correlation of returns. The simulated results are then used to estimate the future payout based on the performance and payout relationship established by the conditions of the award. The future payout is discounted to the measurement date using the risk-free interest rate. Both our stock options and RSUs primarily have a graded vesting schedule. We recognize expense on a straight-line basis over the requisite service period for each separately vesting portion of the award as if the award was, in substance, multiple awards. See NOTE 15, "Stock-Based Compensation" for further information. In 2016, we elected to early adopt the provisions of ASU 2016-09. Pursuant to this adoption, we recorded excess tax benefits within income tax expense for the year ended December 31, 2016, where previously these were recorded as increases or decreases to additional contributed capital. In addition, we have elected to account for forfeitures of awards as they occur. Both of these changes have been applied prospectively, and therefore no adjustments were made to prior periods. In accordance with the guidance, we retrospectively reported cash paid on behalf of employees for withholding shares for tax-withholding purposes as a financing activity in the Consolidated Statements of Cash Flows. Additionally, excess tax benefits were classified as an operating activity, applied prospectively. Adoption of this ASU did not result in a material change in our earnings, cash flows, or financial position. Earnings Per Share: Basic earnings per share excludes any dilution and is computed by dividing net earnings available to common shareholders by the weighted-average number of common shares outstanding for the period. Diluted earnings per share reflects the potential dilution that could occur if dilutive securities, such as stock options and unvested restricted stock units, were exercised or resulted in the issuance of common stock. Diluted earnings per share is calculated by adding all potentially dilutive shares to the weighted average number of common shares outstanding for the numerator. If the common stock equivalents have an anti-dilutive effect, they are excluded from the computation of diluted earnings per share. Our antidilutive stock options and RSUs consist of the following: Years Ended December 31, (units) 2016 2015 2014 Antidilutive stock options and RSUs 35,189 13,979 — Foreign Currencies: The financial statements of our non-U.S. subsidiaries, except the United Kingdom ("U.K.") subsidiary, are remeasured into U.S. dollars using the U.S. dollar as the functional currency with all remeasurement adjustments included in the determination of net earnings. Foreign currency loss recorded in the Consolidated Statement of Earnings includes the following: Years Ended December 31, 2016 2015 2014 Foreign currency losses $ (3,714 ) $ (6,299 ) $ (4,130 ) The assets and liabilities of our U.K. subsidiary are translated into U.S. dollars at the current exchange rate at period end, with the resulting translation adjustments made directly to the "Accumulated other comprehensive loss" component of shareholders' equity. Consolidated Statement of Earnings accounts are translated at the average rates during the period. Shipping and Handling: All fees billed to the customer for shipping and handling is classified as a component of net sales. All costs associated with shipping and handling is classified as a component of cost of goods sold. Sales Taxes: We classify sales taxes on a net basis in our consolidated financial statements. Reclassifications: Certain prior period reclassifications have been made in the Consolidated Balance Sheet as a result of including our other post-retirement benefit plan liabilities in Post-retirement obligations as well as the retrospective application of a new accounting pronouncement upon the adoption of ASU 2015-17 related to the presentation of deferred tax assets and liabilities. The chart below quantifies the effects of these reclassification adjustments on our December 31, 2015, financial statements: At December 31, 2015 Consolidated Balance Sheet Line Item As previously reported Reclassification adjustment As currently reported Other current assets $ 15,888 $ (6,025 ) $ 9,863 Deferred income taxes $ 58,544 $ 5,265 $ 63,809 Accrued expenses and other liabilities $ (53,905 ) $ 6,731 $ (47,174 ) Long-term pension obligations $ (2,703 ) $ (4,527 ) $ (7,230 ) Other long-term obligations $ (7,725 ) $ (1,444 ) $ (9,169 ) Recently Issued Accounting Pronouncements ASU 2016-16 "Income Taxes (Topic 740) Intra-Entity Transfers of Assets Other Than Inventory" In October 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2016-16, "Intra-Entity Transfers of Assets Other Than Inventory" . This ASU is meant to improve the accounting for the income tax effect of intra-entity transfers of assets other than inventory. Currently, US GAAP prohibits the recognition of current and deferred income taxes for intra-entity asset transfers until the asset is sold to a third party. This ASU will now require companies to recognize the income tax effect of an intra-entity asset transfer (other than inventory) when the transaction occurs. This ASU is effective, for public companies, for fiscal years beginning after December 15, 2019 and interim periods within those annual reporting periods. Early adoption is permitted and is to be applied on a modified retrospective bases through a cumulative-effect adjustment to retained earnings as of the beginning of the period of adoption. This guidance is not expected to have a material impact on our consolidated financial statements. ASU 2016-15 "Statement of Cash Flows (Topic 230) Classification of Certain Cash Receipts and Cash Payments" In August 2016, the FASB issued ASU No. 2016-15, "Classification of Certain Cash Receipts and Cash Payments". This ASU reduces the diversity in reporting of eight specific cash flow issues due to accounting guidance that is unclear or does not exist. The eight issues relate to certain debt activities, business combination activities, insurance settlements and other various activities. This guidance is effective for fiscal years beginning after December 15, 2017 and interim periods within those fiscal years. Early adoption is permitted and is to be applied retrospectively using a transition method for each period presented. An entity that elects early adoption of the amendment under this ASU must adopt all aspects of the amendment in the same period. This guidance is not expected to have a material impact on our consolidated financial statements. ASU 2016-09 "Compensation-Stock Compensation (Topic 718): Improvement to Employee Share Based Payment Accounting" In March 2016, the FASB issued ASU No. 2016-09, “Improvements to Employee Share-Based Payment Accounting.” This ASU simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences of excess tax benefits, forfeitures, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The guidance is effective for annual reporting periods beginning after December 15, 2016, including interim periods. Early adoption is permitted. An entity that elects early adoption of the amendment under this ASU must adopt all aspects of the amendment in the same period. In 2016, we elected to early adopt the provisions of ASU 2016-09 as described in more detail in the Stock-Based Compensation section of Note 1 above. Adoption of ASU 2016-09 did not have a material effect on our earnings, cash flows, or financial position. ASU 2016-05 "Derivatives and Hedging (Topic 815): Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships" In March 2016, the FASB issued ASU No. 2016-05 "Derivatives and Hedging (Topic 815): Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships". This amendment clarifies that a change in the counterparty to a derivative instrument does not on its own require dedesignation of the hedging instrument under Topic 815, provided that all other hedge accounting criteria (including those in paragraphs 815-20-35-14 through 35-18) continue to be met. This update can be applied prospectively or retrospectively and is effective for fiscal years beginning after December 15, 2016, and interim periods within those years. This guidance is not expected to have a material impact on our consolidated financial statements. ASU 2016-02 "Leases (Topic 842)" In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)". This amendment created a new Topic under the accounting standards codification to account for the provisions of the ASU. This amendment is meant to provide transparency and to improve comparability between entities. The ASU requires companies to record an asset and liability on the balance sheet for leases that were formerly designated as operating leases as well as leases designated as financing leases. The provisions of the ASU predominately change the recognition of leases for lessees, the provisions do not substantially change the accounting for lessors. This ASU will supersede the provisions of Topic 840 Leases. The liability recorded for a lease is meant to recognize the lease payments and the asset as a right to use the underlying asset for the lease, including optional periods if it is reasonably certain the option will be exercised. Recording of the liability should be based on the present value of the lease payments. If a lease term is less than twelve months, a company is allowed to elect not to record the asset and liability. Expense related to these leases are to be amortized straight-line over the term of the lease. Additionally, the provisions of this ASU provide additional guidance on separating lease terms from maintenance and other type of provisions that provide a good or service, accounting for sale-leaseback provisions, and leveraged leases. Reporting in the cash flow statement remains virtually unchanged. Additional qualitative and quantitative disclosures are required. These updates are required to be applied under a modified retrospective approach from the beginning of the earlier period presented. The modified approach provides optional practical expedients that may be elected, which will allow companies to continue to account for leases under the previous guidance for leases that commenced prior to the effective date. The provisions of this ASU are effective for fiscal years beginning after December 15, 2018, and interim periods within those periods. Early adoption is allowed. The provisions of this guidance are still being evaluated and the impact on our financial statements has not yet been determined. ASU 2015-17, “Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes” In November 2015, the FASB issued ASU 2015-17, "Income Taxes Topic 740: Balance Sheet Classification of Deferred Taxes". The amendment requires companies to begin classifying all deferred income taxes as non-current. The provisions are expected to simplify the presentation of deferred income taxes and align the presentation of deferred income taxes with International Financial Reporting Standards ("IFRS"). The amendments in this update are effective for annual periods beginning after December 16, 2016 and interim periods within those annual periods. The update can be applied prospectively or retrospectively. In 2016, we elected to early adopt ASU 2015-17, applying this standard retrospectively. Reclassifications to the Consolidated Balance Sheet at December 31, 2015 are shown in the Reclassifications section of Note 1 above. ASU 2015-11. “Inventory (Topic 330): Simplifying the Measurement of Inventory” In July 2015, the FASB issued ASU 2015-11, "Inventory (Topic 330) Simplifying the Measurement of Inventory". The amendments clarify that an entity should measure inventory within the scope of this update at the lower of cost and net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Substantial and unusual losses that result from subsequent measurement of inventory should be disclosed in the financial statements. This ASU is effective for fiscal years beginning after December 15, 2016, including interim periods within those annual periods. The amendments are to be applied prospectively with earlier application permitted as of the beginning of an interim or annual reporting period. This guidance is not expected to have a material impact on our consolidated financial statements. ASU 2015-04, “ Compensation - Retirement Benefits (Topic 715): Practical Expedient for the Measurement Date of an Employer’s Benefit Obligation and Plan Assets ” In April 2015, FASB issued ASU 2015-04, “Compensation-Retirement Benefits (Topic 715): Practical Expedient for the Measurement Date of an Employer’s Defined Benefit Obligation and Plan Assets”. The amended guidance permits companies to use a practical expedient, which allows an employer to measure defined benefit plan assets and obligations as of the month-end date that is closest to the employer’s fiscal year-end (alternative measurement date). An employer using this policy election must apply it consistently to all of its defined benefit plans. In accordance with this ASU, an employer using the practical expedient is required to adjust the funded status for contributions and other significant events (as defined in paragraph 715-30-35-66) occurring between the alternative measurement date and its fiscal year-end. Paragraph 715-30-35-66 defines a significant event as: a plan amendment, settlement, or curtailment that calls for remeasurement. This ASU also allows employers the use of the practical expedient in interim remeasurements of significant events. The employer would be required to disclose the election to use the practical expedient and the measurement date of the plan assets and obligations. Early application of this ASU is permitted. Entities must apply the guidance prospectively. In 2016, we adopted the provisions of this ASU and it did not have an impact on our financial statements. ASU 2014-09 , "Revenue from Contracts with Customers (Topic 606)" In May 2014, the FASB issued ASU 2014-09, "Revenue from Contracts with Customers (Topic 606)". The guidance in this ASU affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards (for example, insurance contracts or lease contracts). The new revenue recognition guidance more closely aligns U.S. GAAP with International Financial Reporting Standards ("IFRS"). The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those good |
Accounts Receivable
Accounts Receivable | 12 Months Ended |
Dec. 31, 2016 | |
Receivables [Abstract] | |
Accounts Receivable | Accounts Receivable The components of accounts receivable are as follows: As of December 31, 2016 2015 Accounts receivable, gross $ 62,782 $ 54,696 Less: Allowance for doubtful accounts (170 ) (133 ) Accounts receivable, net $ 62,612 $ 54,563 |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2016 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories consist of the following: As of December 31, 2016 2015 Finished goods $ 7,513 $ 6,972 Work-in-process 9,596 6,828 Raw materials 17,680 16,991 Less: Inventory reserves (6,137 ) (6,191 ) Inventories, net $ 28,652 $ 24,600 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment is comprised of the following: As of December 31, 2016 2015 Land $ 2,330 $ 2,401 Buildings and improvements 63,621 65,731 Machinery and equipment 213,198 191,212 Less: Accumulated depreciation (197,038 ) (189,472 ) Property, plant and equipment, net $ 82,111 $ 69,872 Depreciation expense recorded in the Consolidated Statements of Earnings includes the following: For the Years Ended 2016 2015 2014 Depreciation expense $ 13,177 $ 12,219 $ 12,781 |
Retirement Plans
Retirement Plans | 12 Months Ended |
Dec. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Retirement Plans | Retirement Plans We have a number of noncontributory defined benefit pension plans ("pension plans") covering approximately 6% of our active employees. Pension plans covering salaried employees provide pension benefits that are based on the employees´ years of service and compensation prior to retirement. Pension plans covering hourly employees generally provide benefits of stated amounts for each year of service. We also provide post-retirement life insurance benefits for certain retired employees. Domestic employees who were hired prior to 1982 and certain domestic union employees are eligible for life insurance benefits upon retirement. We fund life insurance benefits through term life insurance policies and intend to continue funding all of the premiums on a pay-as-you-go basis. We recognize the funded status of a benefit plan in our statement of financial position. The funded status is measured as the difference between plan assets at fair value and the projected benefit obligation. We also recognize, as a component of other comprehensive income, net of tax, the gains or losses and prior service costs or credits that arise during the period but are not recognized as components of net periodic benefit/cost. The measurement dates for the pension plans for our U.S. and non-U.S. locations were December 31, 2016 , and 2015 . During 2014, we approved a plan to terminate the U.K. Limited Retirement Benefits Scheme ("the U.K. Plan"). The pension liability was settled in a purchased annuity. We completed the termination of the pension plan by the end of 2015, and a loss on settlement of this pension in the amount of $8,280 was recorded in restructuring and impairment charges in 2015. The following table provides a reconciliation of benefit obligation, plan assets, and the funded status of the pension plans for U.S. and non-U.S. locations at the measurement dates. U.S. Pension Plans Non-U.S. Pension Plans 2016 2015 2016 2015 Accumulated benefit obligation $ 247,276 $ 256,924 $ 2,295 $ 2,247 Change in projected benefit obligation: Projected benefit obligation at January 1 $ 256,924 $ 284,365 $ 2,796 $ 16,168 Service cost 87 171 51 63 Interest cost 11,024 11,258 46 465 Benefits paid (20,537 ) (21,526 ) (289 ) (691 ) Actuarial (gain) loss (222 ) (17,344 ) 229 (131 ) Plan settlement — — — (12,786 ) Foreign exchange impact — — 33 (292 ) Projected benefit obligation at December 31 $ 247,276 $ 256,924 $ 2,866 $ 2,796 Change in plan assets: Assets at fair value at January 1 $ 289,315 $ 314,453 $ 1,480 $ 15,128 Actual return on assets 23,163 (3,723 ) 11 (538 ) Company contributions 103 111 303 1,275 Benefits paid (20,537 ) (21,526 ) (289 ) (691 ) Plan settlement — — — (13,437 ) Foreign exchange impact — — 18 (257 ) Assets at fair value at December 31 $ 292,044 $ 289,315 $ 1,523 $ 1,480 Funded status (plan assets less projected benefit obligations) $ 44,768 $ 32,391 $ (1,343 ) $ (1,316 ) The measurement dates for the post-retirement life insurance plan were December 31, 2016 , and 2015 . The following table provides a reconciliation of benefit obligation, plan assets, and the funded status of the post-retirement life insurance plan at that measurement dates. Post-Retirement 2016 2015 Accumulated benefit obligation $ 4,952 $ 4,885 Change in projected benefit obligation: Projected benefit obligation at January 1 $ 4,886 $ 5,194 Service cost 3 5 Interest cost 207 204 Benefits paid (165 ) (172 ) Actuarial loss (gain) 21 (345 ) Projected benefit obligation at December 31 $ 4,952 $ 4,886 Change in plan assets: Assets at fair value at January 1 $ — $ — Actual return on assets — — Company contributions 165 172 Benefits paid (165 ) (172 ) Other — — Assets at fair value at December 31 $ — $ — Funded status (plan assets less projected benefit obligations) $ (4,952 ) $ (4,886 ) The components of the prepaid (accrued) cost of the domestic and foreign pension plans, net are classified in the following lines in the Consolidated Balance Sheets at December 31: U.S.Pension Plans Non-U.S. Pension Plans 2016 2015 2016 2015 Prepaid pension asset $ 46,183 $ 33,779 $ — $ — Accrued expenses and other liabilities (317 ) — — — Long-term pension obligations (1,098 ) (1,388 ) (1,343 ) (1,316 ) Net prepaid (accrued) cost $ 44,768 $ 32,391 $ (1,343 ) $ (1,316 ) The components of the accrued cost of the post-retirement life insurance plan, net are classified in the following lines in the Consolidated Balance Sheets at December 31: Post-Retirement 2016 2015 Accrued expenses and other liabilities $ (387 ) $ (360 ) Long-term pension obligations (4,565 ) (4,526 ) Total accrued cost $ (4,952 ) $ (4,886 ) We have also recorded the following amounts to accumulated other comprehensive loss for the U.S. and non-U.S. pension plans, net of tax: U.S.Pension Plans Non-U.S. Pension Plans Unrecognized Prior Total Unrecognized Balance at January 1, 2015 $ 96,194 $ — $ 96,194 $ 8,490 Amortization of retirement benefits, net of tax (3,956 ) — (3,956 ) (1,507 ) Settlements and curtailments — — — (5,355 ) Net actuarial gain 4,150 — 4,150 640 Foreign exchange impact — — — (629 ) Balance at January 1, 2016 $ 96,388 $ — $ 96,388 $ 1,639 Amortization of retirement benefits, net of tax (3,817 ) — (3,817 ) 85 Settlements and curtailments — — — Net actuarial (loss) gain (2,808 ) — (2,808 ) 12 Foreign exchange impact — — — 7 Balance at December 31, 2016 $ 89,763 $ — $ 89,763 $ 1,743 We have recorded the following amounts to accumulated other comprehensive loss for post-retirement life insurance plan, net of tax: Unrecognized Balance at January 1, 2015 $ (517 ) Amortization of retirement benefits, net of tax 63 Net actuarial loss (215 ) Balance at January 1, 2016 $ (669 ) Amortization of retirement benefits, net of tax 95 Net actuarial gain 14 Balance at December 31, 2016 $ (560 ) The accumulated actuarial gains and losses and prior service costs and credits included in other comprehensive income are amortized in the following manner: The component of unamortized net gains or losses related to our qualified pension plans is amortized based on the expected future life expectancy of the plan participants (estimated to be approximately 20 years at December 31, 2016 ), because substantially all of the participants in those plans are inactive. The component of unamortized net gains or losses related to our post-retirement life insurance plan is amortized based on the estimated remaining future service period of the plan participants (estimated to be approximately 4 years at December 31, 2016 ). The Company uses a market-related value of plan assets approach reflecting changes in the fair value of plan assets over a five-year period. The variance resulting from the difference between the expected and actual return on plan assets is included in the amortization calculation upon reflection in the market-related value of plan assets. We expect to recognize, on a pre-tax basis, approximately $5,931 of losses included in accumulated other comprehensive loss in 2017 related to our Pension Plans. We do not expect to recognize any significant such amounts related to the post-retirement life insurance plan in 2017 . The projected benefit obligation, accumulated benefit obligation and fair value of plan assets for those Pension Plans with accumulated benefit obligation in excess of fair value of plan assets is shown below: As of December 31, 2016 2015 Projected benefit obligation $ 4,281 $ 4,184 Accumulated benefit obligation 3,710 3,635 Fair value of plan assets 1,523 1,480 Net pension (income) expense includes the following components: Years Ended Years Ended U.S. Pension Plans Non-U.S. Pension Plans 2016 2015 2014 2016 2015 2014 Service cost $ 87 $ 171 $ 192 $ 51 $ 63 $ 83 Interest cost 11,024 11,258 12,214 46 465 608 Expected return on plan assets (1) (18,976 ) (20,272 ) (20,833 ) (26 ) (446 ) (677 ) Amortization of unrecognized loss 5,994 6,339 5,644 140 7,492 231 Additional cost due to early retirement — — 172 — 651 — Curtailment loss — — — — — — Net (income)/expense $ (1,871 ) $ (2,504 ) $ (2,611 ) $ 211 $ 8,225 $ 245 Weighted-average actuarial assumptions (2) Benefit obligation assumptions: Discount rate 4.16 % 4.43 % 4.07 % 1.13 % 1.63 % 3.13 % Rate of compensation increase 0.00 % 0.00 % 0.00 % 2.00 % 2.00 % 0.48 % Pension income/expense assumptions: Discount rate 4.43 % 4.07 % 4.84 % 1.63 % 3.13 % 3.85 % Expected return on plan assets (1) 6.63 % 7.00 % 7.50 % 1.63 % 2.00 % 4.06 % Rate of compensation increase 0.00 % 0.00 % 0.00 % 2.00 % 0.48 % 0.57 % (1) Expected return on plan assets is net of expected investment expenses and certain administrative expenses. (2) During the fourth quarter of each year, we review our actuarial assumptions in light of current economic factors to determine if the assumptions need to be adjusted. Net post-retirement expense includes the following components: Post-Retirement Years Ended December 31, 2016 2015 2014 Service cost $ 3 $ 5 $ 4 Interest cost 207 204 230 Amortization of unrecognized gain (149 ) (101 ) (158 ) Net expense $ 61 $ 108 $ 76 Weighted-average actuarial assumptions (1) Benefit obligation assumptions: Discount rate 4.10 % 4.43 % 4.07 % Rate of compensation increase 0 % 0 % 0 % Pension income/post-retirement expense assumptions: Discount rate 4.43 % 4.07 % 4.84 % Rate of compensation increase 0 % 0 % 0 % (1) During the fourth quarter of each year, we review our actuarial assumptions in light of current economic factors to determine if the assumptions need to be adjusted. The discount rate utilized to estimate our pension and post-retirement obligations is based on market conditions at December 31, 2016 , and is determined using a model consisting of high quality bond portfolios that match cash flows of the plans' projected benefit payments based on the plan participants' service to date and their expected future compensation. Use of the rate produced by this model generates a projected benefit obligation that equals the current market value of a portfolio of high quality bonds whose maturity dates match the timing and amount of expected future benefit payments. The discount rate used to determine 2016 pension income and post-retirement expense for our pension and post-retirement plans is based on market conditions at December 31, 2015 , and is the interest rate used to estimate interest incurred on the outstanding projected benefit obligations during the period. We utilize a building block approach in determining the long-term rate of return for plan assets. Historical markets are reviewed and long-term relationships between equities and fixed-income are preserved consistent with the generally accepted capital market principle that assets with higher volatility generate a greater return over the long term. Current market factors such as inflation and interest rates are evaluated before long-term capital market assumptions are determined. The long-term portfolio return is established via a building block approach with proper consideration of diversification and rebalancing. Peer data and historical returns are reviewed to ensure for reasonableness and appropriateness. Our pension plan asset allocation at December 31, 2016 , and 2015 , and target allocation for 2017 by asset category are as follows: Target Allocations Percentage of Plan Assets Asset Category 2017 2016 2015 Equity securities (1) 28% 25% 39% Debt securities 60% 59% 41% Other 12% 16% 20% Total 100% 100% 100% (1) Equity securities include CTS common stock in the amounts of approximately $17,700 ( 6% of total plan assets) at December 31, 2016 , and approximately $25,000 ( 9% of total plan assets) at December 31, 2015 . We employ a liability-driven investment strategy whereby a mix of equity and fixed-income investments are used to pursue a de-risking strategy which over time seeks to reduce interest rate mismatch risk and other risks while achieving a return that matches or exceeds the growth in projected pension plan liabilities. Risk tolerance is established through careful consideration of plan liabilities and funded status. The investment portfolio primarily contains a diversified mix of equity and fixed-income investments. Other assets such as private equity are used modestly to enhance long-term returns while improving portfolio diversification. Investment risk is measured and monitored on an ongoing basis through quarterly investment portfolio reviews, annual liability measurements, and asset/liability studies at regular intervals. The following table summarizes the fair values of our pension plan assets: As of December 31, 2016 2015 Equity securities - U.S. holdings (1) $ 43,708 $ 56,696 Equity securities - non-U.S. holdings (1) 819 11,028 Equity funds - U.S. holdings (1) 28,052 17,522 Equity funds - non-U.S. holdings (1) — 26,903 Bond funds - government (6) 22,237 47,800 Bond funds - other (7) 150,712 69,617 Real estate (8) 3,812 10,006 Cash and cash equivalents (2) 7,823 7,417 Partnerships (5) 12,862 13,360 Long/short equity-focused hedge funds (4) — 5,255 International hedge funds (3) 23,542 25,191 Total fair value of plan assets $ 293,567 $ 290,795 The fair values at December 31, 2016 , are classified within the following categories in the fair value hierarchy: Quoted Prices Significant Significant Not Leveled Total Equity securities - U.S. holdings (1) $ 43,708 $ — $ — $ — $ 43,708 Equity securities - non-U.S. holdings (1) 819 — — — 819 Equity funds - U.S. holdings (1) — 28,052 — — 28,052 Equity funds - non-U.S. holdings (1) — — — — — Bond funds - government (6) — 22,237 — — 22,237 Bond funds - other (7) — 150,712 — — 150,712 Real estate (8) (9) — — — 3,812 3,812 Cash and cash equivalents (2) 7,823 — — — 7,823 Partnerships (5) — — 12,862 — 12,862 International hedge funds (3) (9) — — — 23,542 23,542 Total $ 52,350 $ 201,001 $ 12,862 $ 27,354 $ 293,567 The fair values at December 31, 2015 , are classified within the following categories in the fair value hierarchy: Quoted Prices Significant Significant Not Leveled Total Equity securities - U.S. holdings (1) $ 56,696 $ — $ — $ — $ 56,696 Equity securities - non-U.S. holdings (1) 11,028 — — — 11,028 Equity funds - U.S.holdings (1) — 17,522 — — 17,522 Equity funds - non-U.S. holdings (1) — 26,903 — — 26,903 Bond funds - government (6) — 47,800 — — 47,800 Bond funds - other (7) — 69,617 — — 69,617 Real Estate (8) (9) — — — 10,006 10,006 Cash and cash equivalents (2) 7,417 — — — 7,417 Partnerships (5) — — 13,360 — 13,360 Long/short equity-focused hedge funds (4) (9) — — — 5,255 5,255 International hedge funds (3) (9) — — — 25,191 25,191 Total $ 75,141 $ 161,842 $ 13,360 $ 40,452 $ 290,795 (1) Comprised of common stocks of companies in various industries. The Pension Plan fund manager may shift investments from value to growth strategies or vice-versa, from small cap to large cap stocks or vice-versa, in order to meet the Pension Plan's investment objectives, which are to provide for a reasonable amount of long-term growth of capital without undue exposure to volatility, and protect the assets from erosion of purchasing power. (2) Comprised of investment grade short-term investment and money-market funds. (3) This fund allocates its capital across several direct hedge-fund organizations. This fund invests with hedge funds that employ "non-directional" strategies. These strategies do not require the direction of the markets to generate returns. The majority of these hedge funds generate returns by the occurrence of key events such as bankruptcies, mergers, spin-offs, etc. Investments can be redeemed at the Share Net Asset Value ("NAV") as of the last business day of each calendar quarter with at least a sixty-five day prior written notice to the administrator. (4) The hedge fund manager utilizes fundamental research and invests in equities both long (seeking price appreciation) and short (expectation that the stock will fall) instruments. Investments can be redeemed at the Share NAV as of the last business day of each calendar quarter with at least a sixty-five day prior written notice to the administrator. (5) Comprised of partnerships that invest in various U.S. and international industries. (6) Comprised of zero-coupon U.S. Treasury securities (“Treasury STRIPS”) with maturities greater than 20 years. (7) Comprised predominately of investment grade U.S. corporate bonds with maturities greater than 10 years and U.S. high-yield corporate bonds; emerging market debt (local currency sovereign bonds, U.S. dollar-denominated sovereign bonds and U.S. dollar-denominated corporate bonds); and U.S. bank loans. (8) Comprised of investments in securities of U.S. and non-U.S. real estate investment trusts (REITs), real estate operating companies and other companies that are principally engaged in the real estate industry and of investments in global private direct commercial real estate. Investments can be redeemed immediately following the valuation date with a notice of at least fifteen business days before valuation. (9) Comprised of investments that are measured at fair value using the NAV per share practical expedient. In accordance with the provisions of ASC 820-10, these investments have not been classified in the fair value hierarchy. The fair value amount not leveled is presented to allow reconciliation of the fair value hierarchy to total fund pension plan assets. The pension plan assets recorded at fair value are measured and classified in a hierarchy for disclosure purposes consisting of three levels based on the observability of inputs available in the marketplace used to measure fair value as discussed below: • Level 1: Fair value measurements that are quoted prices (unadjusted) in active markets that the pension plan trustees have the ability to access for identical assets or liabilities. Market price data generally is obtained from exchange or dealer markets. • Level 2: Fair value measurements based on inputs other than quoted prices included in Level 1 that are observable for the asset, either directly or indirectly. Level 2 inputs include quoted prices for similar assets in active or inactive markets, and inputs other than quoted prices that are observable for the asset, such as interest rates and yield curves that are observable at commonly quoted intervals. • Level 3: Fair value measurements based on valuation techniques that use significant inputs that are unobservable. The table below reconciles the Level 3 partnership assets within the fair value hierarchy: Amount Fair value of Level 3 partnership assets at January 1, 2015 $ 11,239 Capital contributions 2,808 Net ordinary gain attributable to partnership assets — Realized and unrealized gain 754 Capital distributions (1,441 ) Fair value of Level 3 partnership assets at December 31, 2015 13,360 Capital contributions 1,419 Net ordinary gain attributable to partnership assets — Realized and unrealized gain 584 Capital distributions (2,501 ) Fair value of Level 3 partnership assets at December 31, 2016 $ 12,862 The partnership fund manager uses a market approach in estimating the fair value of the plan's Level 3 asset. The market approach estimates fair value by first determining the entity's earnings before interest, taxes, depreciation and amortization and then multiplying that value by an estimated multiple. When establishing an appropriate multiple, the fund manager considers recent comparable private company transactions and multiples paid. The entity's net debt is then subtracted from the calculated amount to arrive at an estimated fair value for the entity. The fund manager's goal is to provide a conservative estimate of the fair value of such assets and to utilize conservative estimates of multiples used in establishing such fair values. Our former U.K. pension plan assets included fixed annuity contracts at market value. These annuities had no tradeable value. Fair value was assessed at the present value of the stream of expected payments using certain actuarial assumptions. Accordingly, these fixed annuities are classified as Level 3 under the fair value hierarchy. The table below reconciles the Level 3 fixed annuity contracts within the fair value hierarchy: Amount Fair value of Level 3 fixed annuity contracts at January 1, 2015 $ 12,475 Purchases — Benefits paid (12,475 ) Net loss — Fair value of Level 3 fixed annuity contracts at December 31, 2015 — Purchases — Assets transferred due to termination of plan — Net loss — Fair value of Level 3 fixed annuity contracts at December 31, 2016 $ — We expect to make $317 of contributions to the U.S. plans and $307 of contributions to the non-U.S. plans during 2017 . The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid: U.S. Non-U.S. Post-Retirement 2017 $ 16,411 $ 80 $ 387 2018 16,280 88 378 2019 16,390 92 369 2020 16,488 239 360 2021 16,504 91 350 2022-2025 80,563 711 1,596 Total $ 162,636 $ 1,301 $ 3,440 Defined Contribution Plans We sponsor a 401(k) plan that covers substantially all of our U.S. employees. Contributions and costs are generally determined as a percentage of the covered employee's annual salary. Expenses related to defined contribution plans include the following: Years Ended December 31, 2016 2015 2014 401(k) and other plan expense $ 2,841 $ 3,352 $ 3,719 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets We evaluate finite-lived intangible assets for impairment if indicators of impairment exist. No indicators were identified for the years ended December 31, 2016 , or December 31, 2015 . Other intangible assets consist of the following: As of December 31, 2016 Gross Accumulated Net Weighted Average Remaining Amortization Period (in years) Other intangible assets: Customer lists / relationships $ 63,386 $ (30,318 ) $ 33,068 11.6 Patents 10,319 (10,319 ) — — Technology and other intangibles 36,715 (7,613 ) 29,102 11.0 In process research and development 2,200 — 2,200 — Other intangible assets, net $ 112,620 $ (48,250 ) $ 64,370 11.4 Amortization expense for the year ended December 31, 2016 $ 5,815 Amortization expense remaining for other intangible assets is as follows: Amortization 2017 $ 6,064 2018 5,956 2019 5,947 2020 5,947 2021 5,868 Thereafter 34,588 Total future amortization expense $ 64,370 As of December 31, 2015 Gross Accumulated Net Other intangible assets: Customer lists / relationships $ 51,804 $ (27,101 ) $ 24,703 Patents 10,319 (10,319 ) — Technology and other intangibles 12,871 (5,016 ) 7,855 In process research and development 2,200 — 2,200 Other intangible assets, net $ 77,194 $ (42,436 ) $ 34,758 Amortization expense for the year ended December 31, 2015 $ 4,035 Amortization expense for the year ended December 31, 2014 $ 4,190 In 2016, a Step 1 goodwill test was performed by management with the assistance of a third-party valuation firm. As of December 31, 2016 , it was concluded that the estimated implied fair value of goodwill exceeded the carrying value and accordingly, no goodwill impairment was required. Changes in the net carrying value amount of goodwill were as follows: Total Goodwill as of December 31, 2014 $ 32,047 Increase from acquisitions 1,818 Goodwill as of December 31, 2015 33,865 Increase from acquisition 27,879 Goodwill as of December 31, 2016 $ 61,744 |
Costs Associated with Exit and
Costs Associated with Exit and Restructuring Activities | 12 Months Ended |
Dec. 31, 2016 | |
Restructuring and Related Activities [Abstract] | |
Costs Associated with Exit and Restructuring Activities | Costs Associated with Exit and Restructuring Activities Restructuring and impairment charges are reported as a separate line within operating earnings in the Consolidated Statements of Earnings. Restructuring-related charges are recorded as a component of cost of goods sold. Total restructuring, impairment and restructuring-related charges were: Years Ended December 31, 2016 2015 2014 Restructuring-related charges $ — $ 631 $ 1,935 Restructuring and impairment charges 3,048 14,564 5,941 Total restructuring, impairment, and restructuring-related charges $ 3,048 $ 15,195 $ 7,876 In June 2016, we announced plans to restructure operations by phasing out production at the Elkhart facility by mid-2018 and transitioning it into a research and development center supporting our global operations ("June 2016 Plan"). Additional organizational changes will also occur in various other locations. The cost of the plan is expected to be approximately $16,000 including severance and other one-time benefit arrangements. We have recorded $ 3,048 of termination and other one-time benefit charges impacting approximately 230 employees as of December 31, 2016 . Additional costs related to line movements, asset impairment and equipment charges, and other costs will be expensed as incurred. The total restructuring liability related to the June 2016 Plan was $ 1,739 at December 31, 2016 . The following table displays the planned restructuring and impairment charges associated with the June 2016 Plan as well as a summary of the actual costs incurred through December 31, 2016 : June 2016 Plan Planned Costs Actual costs Workforce reduction $ 3,075 $ 2,504 Equipment relocation 7,925 341 Asset impairment charge 3,700 — Other charges 1,300 203 Restructuring and impairment charges $ 16,000 $ 3,048 Total restructuring and impairment charges for the June 2016 Plan were as follows: Years Ended December 31, 2016 2015 Restructuring and impairment charges $ 3,048 $ — Not included in restructuring and impairment charges, but directly attributable to the June 2016 Plan, is an increase in tax expense of $2,316 relating to increases in valuation allowances on deferred tax assets for state net operating losses and tax credits and the revaluation of U.S. deferred taxes as a result of a change in our expected future tax rate as discussed in Note 17 "Income Taxes". During April 2014, we announced plans to restructure our operations and consolidate our Canadian operations into other existing facilities as part of our overall plan to simplify our business model and rationalize our global footprint ("April 2014 Plan"). During the second quarter of 2015, management revised the April 2014 Plan. The amendment added $4,250 in planned costs for additional charges due to the extension of the timing of the plant shutdown, equipment impairment and relocation costs, administrative and legal costs, and training, travel and shipping costs to facilitate an effective transition. These restructuring actions, which were substantially completed during 2015, resulted in the elimination of approximately 120 positions. The following table displays the planned restructuring and restructuring-related charges associated with the April 2014 Plan, as well as a summary of the actual costs incurred through December 31, 2016 : April 2014 Plan Planned Actual costs Inventory write-down $ 850 $ — Equipment relocation 1,800 444 Other charges 1,400 113 Restructuring-related charges, included in cost of goods sold $ 4,050 $ 557 Workforce reduction $ 4,200 $ 4,423 Other charges, including pension termination costs 1,700 3,413 Restructuring and impairment charges $ 5,900 $ 7,836 Total restructuring, impairment and restructuring-related charges $ 9,950 $ 8,393 Under the April 2014 Plan, there were no restructuring, impairment, and restructuring-related charges for the year ended December 31, 2016 . Restructuring, impairment, and restructuring-related charges were $4,923 for the year ended December 31, 2015 and $3,470 for the year ended December 31, 2014 . The total restructuring liability related to the April 2014 Plan was $ 423 at December 31, 2016 During June 2013, we announced a restructuring plan to simplify our global footprint by consolidating manufacturing facilities into existing locations. This Plan included (1) the consolidation of operations from the U.K. manufacturing facility into the Czech Republic facility, (2) the consolidation of operations from the Carol Stream, Illinois manufacturing facility into the Juarez, Mexico facility, and (3) the discontinuation of manufacturing at the Singapore facility. Certain Corporate functions were consolidated or eliminated as a result of the June 2013 Plan and also as a result of the sale of our EMS business. These restructuring actions called for the elimination of approximately 350 positions. During the fourth quarter of 2014, management revised the June 2013 Plan. The amendment added $4,000 in planned costs. Settlement of the U.K. pension plan was estimated to account for $2,000 of the added cost. The remaining $2,000 in restructuring and impairment charges were for severance costs that were estimated to result in the elimination of approximately 130 additional positions. The positions eliminated were spread globally throughout our businesses. The following table displays the planned restructuring and restructuring-related charges associated with the June 2013 Plan, as well as a summary of the actual costs incurred through completion of the plan as of December 31, 2015: June 2013 Plan Planned Actual costs Inventory write-down $ 800 $ 1,143 Equipment relocation 900 1,792 Other charges 100 702 Restructuring-related charges, included in cost of goods sold $ 1,800 $ 3,637 Workforce reduction $ 10,150 $ 9,615 Asset impairment charge 3,000 4,139 Other charges, including pension termination costs 7,650 10,205 Restructuring and impairment charges $ 20,800 $ 23,959 Total restructuring and restructuring-related charges $ 22,600 $ 27,596 Under the June 2013 Plan, restructuring, impairment and restructuring-related chargers were $10,272 for the year ended December 31, 2015 and $4,406 for the year ended December 31, 2014 . Actions under this plan were complete by the end of 2015 and no liability remains related to the June 2013 Plan as of December 31, 2016 . The following table displays the restructuring liability activity for the year ended December 31, 2016 : June 2013 Plan and April 2014 Plan and June 2016 Plan Restructuring Liability Restructuring liability at January 1, 2016 $ 826 Restructuring charges 3,048 Cost paid (1,729 ) Other activities (1) 17 Restructuring liability at December 31, 2016 $ 2,162 (1) Other activities includes currency translation adjustments not recorded through restructuring expense. Total restructuring liability included in Other long-term obligations is $1,121 at December 31, 2016 . The remaining liability of $1,041 is included in Accrued expenses and other liabilities at December 31, 2016 . |
Accrued Liabilities and Other L
Accrued Liabilities and Other Liabilities | 12 Months Ended |
Dec. 31, 2016 | |
Payables and Accruals [Abstract] | |
Accrued Liabilities | Accrued Expenses and Other Liabilities The components of accrued expenses and other liabilities are as follows: As of December 31, 2016 2015 Accrued product related costs $ 5,556 $ 5,245 Accrued income taxes 9,826 8,845 Accrued property and other taxes 1,917 1,838 Dividends payable 1,309 1,302 Remediation reserves 18,176 20,603 Other accrued liabilities 8,924 9,341 Total accrued expenses and other liabilities $ 45,708 $ 47,174 |
Contingencies
Contingencies | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies Certain processes in the manufacture of our current and past products create by-products classified as hazardous waste. We have been notified by the U.S. Environmental Protection Agency, state environmental agencies, and in some cases, groups of potentially responsible parties, that we are potentially liable for environmental contamination at several sites currently and formerly owned or operated by CTS. Some sites, such as Asheville, North Carolina and Mountain View, California, are designated National Priorities List Superfund sites under the U.S. Environmental Protection Agency’s Superfund program. We reserve for probable remediation activities at these sites and for claims and proceedings against CTS with respect to other environmental matters. We record reserves on an undiscounted basis. In the opinion of management, based upon presently available information relating to such matters, adequate provision for probable and estimable costs have been recorded. We do not have any known environmental obligations where a loss is probable or reasonably possible of occurring for which we do not have a reserve, nor do we have any amounts for which we have not reserved because the amount of the loss cannot be reasonably estimated. Due to the inherent nature of environmental obligations, we cannot provide assurance that our ultimate environmental liability will not materially exceed the amount of our current reserve. Our reserve and disclosures will be adjusted accordingly if additional information becomes available in the future. A roll forward of remediation reserves on the balance sheet is comprised of the following: Years Ended December 31, 2016 2015 2014 Balance at beginning of period $ 20,603 $ 3,918 $ 5,116 Remediation expense 556 18,591 1,521 Remediation payments (2,983 ) (1,906 ) (2,719 ) Balance at end of the period $ 18,176 $ 20,603 $ 3,918 Unrelated to the environmental claims described above, certain other legal claims are pending against us with respect to matters arising out of the ordinary conduct of our business. Although the ultimate outcome of any potential litigation resulting from these claims cannot be predicted with certainty, and some may be disposed of unfavorably to CTS, management believes that adequate provision for anticipated costs have been established based upon all presently available information. Except as noted herein, we do not believe we have any pending loss contingencies that are probable or reasonably possible of having a material impact on our consolidated financial position, results of operations or cash flows. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2016 | |
Leases [Abstract] | |
Leases | Leases Minimum future obligations under all non-cancelable operating leases as of December 31, 2016 , are as follows: Operating Leases 2017 $ 4,635 2018 3,224 2019 1,829 2020 1,204 2021 583 Thereafter 2,526 Total minimum lease obligations $ 14,001 Rent expense for operating leases charged to operations was as follows : Years Ended December 31, 2016 2015 2014 Rent expense $ 5,694 $ 3,550 $ 4,300 Operating leases include a variety of properties around the world. These properties are used as manufacturing facilities, distribution centers and sales offices. Lease expirations range from 2017 to 2026 with breaking periods specified in the lease agreements. Sublease income was $ 457 in 2016 . Future sublease income is $ 500 in 2017 , $ 487 in 2018 , and $1,872 thereafter. Some of our operating leases include renewal options and escalation clauses. In the fourth quarter of 2012, one of our foreign locations entered into a sale-leaseback transaction. As a result of this transaction, a deferred gain of approximately $4,500 was being amortized over the 6 year expected lease term. During 2015, we terminated the lease and recognized the remaining unamortized deferred gain into income. A gain of $2,108 was included in the Consolidated Statements of Earnings for the year ended December 31, 2015. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Debt | Debt Long-term debt was comprised of the following: As of December 31 2016 2015 Revolving credit facility due in 2020 $ 89,100 $ 90,700 Weighted-average interest rate 1.9 % 1.5 % Amount available $ 208,735 $ 106,985 Total credit facility $ 300,000 $ 200,000 Standby letters of credit $ 2,165 $ 2,315 Commitment fee percentage per annum 0.25 % 0.25 % The revolving credit facility requires, among other things, that we comply with a maximum total leverage ratio and a minimum fixed charge coverage ratio. Failure to comply with these covenants could reduce the borrowing availability under the revolving credit facility. We were in compliance with all debt covenants as of December 31, 2016 . The revolving credit facility requires us to deliver quarterly financial statements, annual financial statements, auditors certifications and compliance certificates within a specified number of days after the end of a quarter and year. Additionally, the revolving credit facility contains restrictions limiting our ability to dispose of assets; incur certain additional debt; repay other debt or amend subordinated debt instruments; create liens on assets; make investments, loans or advances; make acquisitions or engage in mergers or consolidations; engage in certain transactions with our subsidiaries and affiliates; and make stock repurchases and dividend payments. Interest rates on the revolving credit facility fluctuate based upon the London Interbank Offered Rate and the Company's quarterly total leverage ratio. We pay a commitment fee on the undrawn portion of the revolving credit facility. The commitment fee varies based on the quarterly leverage ratio. We have debt issuance costs related to our long-term debt that are being amortized using the straight-line method over the life of the debt. Amortization expense was approximately $163 in 2016 , $175 in 2015 , and $200 in 2014 , and was recognized as interest expense. We use interest rate swaps to convert the revolving credit facility's variable rate of interest into a fixed rate on a portion of the debt. In the second quarter of 2012, We entered into four separate interest rate swap agreements to fix interest rates on $50,000 of long-term debt for the periods January 2013 to January 2017. In the third quarter of 2012, we entered into four separate interest rate swap agreements to fix interest rates on $25,000 of long-term debt for the periods January 2013 to January 2017. In the third quarter of 2016, we entered into three additional forward-starting interest rate swap agreements to fix interest rates on $50,000 of long-term debt for the periods August 2017 to August 2020. The difference to be paid or received under the terms of the swap agreements is recognized as an adjustment to interest expense for the related revolving credit facility when settled. These swaps are treated as cash flow hedges and consequently, the changes in fair value were recorded in Other comprehensive earnings. Interest rate swaps activity recorded in other comprehensive earnings before tax included the following: Years Ended December 31, 2016 2015 2014 Unrealized gain (loss) $ 593 $ (516 ) $ (510 ) Realized gain reclassified to interest expense $ 928 $ 768 $ 488 Interest rate swaps included on the balance sheets are comprised of the following: As of December 31, 2016 2015 Other current assets $ 2 $ — Other assets $ 751 $ — Accrued expenses and other liabilities $ — $ 791 Other long-term obligations $ — $ (23 ) |
Derivatives Derivative Financia
Derivatives Derivative Financial Instruments (Notes) | 12 Months Ended |
Dec. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivatives Our earnings and cash flows are subject to fluctuations due to changes in foreign currency exchange rates and interest rates. We selectively use derivative financial instruments including foreign currency forward contracts and interest rate swaps to manage our exposure to these risks. The use of derivative financial instruments exposes the Company to credit risk, which relates to the risk of nonperformance by a counterparty to the derivative contracts. We manage our credit risk by entering into derivative contracts with only highly rated financial institutions and by using netting agreements. Foreign Currency Hedges In January of 2016, we began using forward contracts to mitigate currency risk related to a portion of our forecasted foreign Euro denominated revenues and Mexican Peso denominated expenses. The currency forward contracts are designed as cash flow hedges and are recorded in the Consolidated Balance Sheets at fair value. At least quarterly, we assess the effectiveness of these hedging relationships based on the total change in their fair value using regression analysis. The effective portion of derivative gains and losses are recorded in Accumulated other comprehensive loss until the hedged transaction affects earnings upon settlement, at which time they are reclassified to net sales and cost of goods sold. Ineffectiveness is recorded in Other expense in our Consolidated Statements of Earnings. If it becomes probable that an anticipated transaction that is hedged will not occur by the end of the originally specified time period, we reclassify the gains or losses related to that hedge from Accumulated other comprehensive loss to other expense. As of December 31, 2016 , we were hedging a portion of our forecasted Peso expenses for the following twelve months and did not have any Euro cash flow hedges in place. We continue to monitor the Company’s overall currency exposure and may elect to add cash flow hedges in the future. At December 31, 2016 , we had a net unrealized loss of $ 637 in Accumulated other comprehensive loss, of which $ 637 is expected to be reclassified to income within the next 12 months. The notional amount of foreign currency forward contracts outstanding was $ 11.6 million at December 31, 2016 . Interest Rate Swaps We use interest rate swaps to convert the revolving credit facility’s variable rate of interest into a fixed rate on a portion of the debt balance. In the second quarter of 2012, we entered into four separate interest rate swap agreements to fix interest rates on $50,000 of long-term debt for the periods January 2013 to January 2017. In the third quarter of 2012, we entered into four additional interest rate swap agreements to fix interest rates on $25,000 of long-term debt for the periods January 2013 to January 2017. In the third quarter of 2016, we entered into three additional forward-starting interest rate swap agreements to fix interest rates on $50,000 of long-term debt for the periods August 2017 to August 2020. The difference to be paid or received under the terms of the swap agreements will be recognized as an adjustment to interest expense when settled. These swaps are treated as cash flow hedges and consequently, the changes in fair value were recorded in other comprehensive income (loss). The estimated net amount of the existing gains or losses that are reported in accumulated other comprehensive income (loss) that is expected to be reclassified into earnings within the next twelve months is approximately $ 2 . The location and fair values of derivative instruments designated as hedging instruments in the Consolidated Balance Sheets as of December 31, 2016 , are shown in the following table: As of December 31, 2016 2015 Foreign currency hedges reported in Accrued expenses and other liabilities $ 601 $ — Interest rate swaps reported in Accrued expenses and other liabilities $ — $ 791 Interest rate swaps reported in Other long-term obligations $ — $ (23 ) Interest rate swaps reported in Other current assets $ 2 $ — Interest rate swaps reported in Other assets $ 751 $ — The Company has elected to net its foreign currency derivative assets and liabilities in the balance sheet in accordance with ASC 210-20 (Balance Sheet, Offsetting). On a gross basis, there were no foreign currency derivative assets and foreign currency derivative liabilities were $ 601 . The effect of derivative instruments on the Consolidated Statements of Earnings is as follows: Years Ended December 31, 2016 2015 Foreign Exchange Contracts: Amounts reclassified from AOCI to earnings Net sales $ (124 ) $ — Cost of goods sold 111 — Selling, general and administrative 1 — Total amounts reclassified from AOCI to earnings (12 ) — Loss recognized in other expense for hedge ineffectiveness (1 ) — Loss recognized in other expense for derivatives not designated as cash flow hedges (5 ) — Total derivative loss on foreign exchange contracts recognized in earnings (18 ) — Interest Rate Swaps: Interest Expense $ (928 ) $ (768 ) Total loss on derivatives recognized in earnings $ (946 ) $ (768 ) The table below provides a reconciliation of the recurring financial assets and liabilities related to interest rate swaps and foreign currency hedges: Interest Rate Foreign Currency Hedges Balance at January 1, 2015 $ (1,020 ) $ — Total gains (losses) for the period: Included in earnings 768 — Included in other comprehensive earnings (516 ) — Balance at January 1, 2016 $ (768 ) $ — Settled in cash — 54 Total gains (losses) for the period: Included in earnings 928 (18 ) Included in other comprehensive earnings 593 (637 ) Balance at December 31, 2016 $ 753 $ (601 ) |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Dec. 31, 2016 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss Shareholders' equity includes certain items classified as accumulated other comprehensive loss ("AOCI") in the Consolidated Balance Sheets, including: • Unrealized gains (losses) on hedges relate to interest rate swaps to convert the revolving credit facility's variable rate of interest into a fixed rate and foreign currency forward contracts used to hedge our exposure to changes in exchange rates affecting certain revenues and costs denominated in foreign currencies. These hedges are designated as cash flow hedges, and we have deferred income statement recognition of gains and losses until the hedged transaction is settled. Amounts reclassified to income from AOCI for hedges are included in interest expense. Further information related to our interest rate swaps is included in NOTE 12, "Derivatives". • Unrealized gains (losses) on pension obligations are deferred from income statement recognition until the gains or losses are realized. Amounts reclassified to income from AOCI are included in net periodic pension expense. Further information related to our pension obligations is included in NOTE 5, "Retirement Plans". • Cumulative translation adjustment relates to our non-U.S. subsidiaries that have designated a functional currency other than the U.S. dollar. We are required to translate the subsidiary functional currency financial statements to dollars using a combination of historical, period-end, and average foreign exchange rates. This combination of rates creates the foreign currency translation adjustment component of other comprehensive income. Transfer of foreign currency translation gains and (losses) from AOCI to income are included in Other (expense) income. The components of AOCI for 2016 are as follows: As of December 31, 2015 Gain (Loss) Gain (Loss) As of December 31, 2016 Changes in fair market value of hedges: Gross $ (768 ) $ (56 ) $ 940 $ 116 Income tax expense (benefit) 289 20 (351 ) (42 ) Net (479 ) (36 ) 589 74 Changes in unrealized pension cost: Gross (161,719 ) — 10,101 (151,618 ) Income tax expense (benefit) 64,361 — (3,689 ) 60,672 Net (97,358 ) — 6,412 (90,946 ) Cumulative translation adjustment: Gross (1,279 ) (1,135 ) — (2,414 ) Income tax expense (benefit) 111 (19 ) — 92 Net (1,168 ) (1,154 ) — (2,322 ) Total accumulated other comprehensive (loss) income $ (99,005 ) $ (1,190 ) $ 7,001 $ (93,194 ) The components of AOCI for 2015 are as follows: As of December 31, 2014 (Loss) Gain Gain (Loss) As of December 31, 2015 Changes in fair market value of hedges: Gross $ (1,020 ) $ (516 ) $ 768 $ (768 ) Income tax expense (benefit) 384 194 (289 ) 289 Net (636 ) (322 ) 479 (479 ) Changes in unrealized pension cost: Gross (169,291 ) — 7,572 (161,719 ) Income tax expense (benefit) 65,124 — (763 ) 64,361 Net (104,167 ) — 6,809 (97,358 ) Cumulative translation adjustment: Gross 245 (1,524 ) — (1,279 ) Income tax expense (benefit) 325 (214 ) — 111 Net 570 (1,738 ) — (1,168 ) Total accumulated other comprehensive (loss) income $ (104,233 ) $ (2,060 ) $ 7,288 $ (99,005 ) |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2016 | |
Stockholders' Equity Note [Abstract] | |
Shareholders' Equity | Shareholders' Equity Share count and par value data related to shareholders' equity are as follows: As of December 31, 2016 2015 Preferred Stock Par value per share No par value No par value Shares authorized 25,000,000 25,000,000 Shares outstanding — — Common Stock Par value per share No par value No par value Shares authorized 75,000,000 75,000,000 Shares issued 56,456,516 56,242,499 Shares outstanding 32,762,494 32,548,477 Treasury stock Shares held 23,694,022 23,694,022 We use the cost method to account for our common stock purchases. During the year ended December 31, 2016 , we did not purchase any shares of common stock under our board-authorized share repurchase program. For the year ended December 31, 2015 , we purchased 984,382 shares of common stock for $ 18,088 . Approximately $17,554 is available for future purchases. A roll forward of common shares outstanding is as follows: As of December 31, 2016 2015 Balance at beginning of the year 32,548,477 33,392,060 Repurchases — (984,382 ) Stock option issuances — 5,200 Restricted stock unit issuances 214,017 135,599 Balance at end of period 32,762,494 32,548,477 |
Equity-Based Compensation
Equity-Based Compensation | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Equity-Based Compensation | -Based Compensation At December 31, 2016 , we had four stock-based compensation plans: the Non-Employee Directors' Stock Retirement Plan ("Directors' Plan"), the 2004 Omnibus Long-Term Incentive Plan ("2004 Plan"), the 2009 Omnibus Equity and Performance Incentive Plan ("2009 Plan"), and the 2014 Performance & Incentive Plan ("2014 Plan"). Future grants can only be made under the 2014 Plan. The 2009 Plan, and previously the 2004 Plan, provided for grants of incentive stock options or nonqualified stock options to officers, key employees, and non-employee members of the Board of Directors. In addition, the 2014 Plan, the 2009 Plan and the 2004 Plan allow for grants of stock appreciation rights, restricted stock, restricted stock units ("RSUs"), performance shares, performance-based restricted stock units, and other stock awards. The following table summarizes the compensation expense included in selling, general and administrative expenses in the Consolidated Statements of Earnings related to stock-based compensation plans: Years Ended December 31, 2016 2015 2014 Service-Based RSUs $ 1,997 $ 1,944 $ 1,771 Performance-Based RSUs 665 1,235 872 Cash-settled awards $ 76 $ 16 $ 17 Total $ 2,738 $ 3,195 $ 2,660 Income tax benefit $ 1,029 $ 1,201 $ 1,000 We recorded a tax deduction related to RSUs that vested during the year ended December 31, 2016 in the amount of $1,829 . The following table summarizes the unrecognized compensation expense related to non-vested RSUs by type and the weighted-average period in which the expense is to be recognized: Unrecognized Weighted- Service-Based RSUs $ 1,625 1.12 years Performance-Based RSUs 1,231 1.73 years Total $ 2,856 1.38 years We recognize expense on a straight-line basis over the requisite service period for each separately vesting portion of the award as if the award was, in substance, multiple awards. The following table summarizes the status of these plans as of December 31, 2016 : 2014 Plan 2009 Plan 2004 Plan Directors' Plan Awards originally available to be granted 1,500,000 3,400,000 6,500,000 N/A Performance stock options outstanding 320,000 — — — Maximum potential RSU and cash settled awards outstanding 609,511 212,849 78,947 25,985 Maximum potential awards outstanding 929,511 212,849 78,947 25,985 RSUs and cash settled awards vested and released 54,544 — — — Awards available to be granted 515,945 — — — Stock Options Stock options are exercisable in cumulative annual installments over a maximum 10 -year period, commencing at least one year from the date of grant. Stock options are generally granted with an exercise price equal to the market price of our stock on the date of grant. The stock options generally vest over four years and have a 10 -year contractual life. The awards generally contain provisions to either accelerate vesting or allow vesting to continue on schedule upon retirement if certain service and age requirements are met. The awards also provide for accelerated vesting if there is a change in control event. We estimate the fair value of the stock option on the grant date using the Black-Scholes option-pricing model and assumptions for expected price volatility, option term, risk-free interest rate, and dividend yield. Expected price volatilities are based on historical volatilities of our common stock. The expected option term was derived from historical data of exercise behavior. The dividend yield was based on historical dividend payments. The risk-free rate for periods within the contractual life of the option was based on the U.S. Treasury yield curve in effect at the time of grant. There were no outstanding stock options at December 31, 2016 or 2015 other than the performance-based stock options described below. Performance-Based Stock Options During 2015 and 2016, the Compensation committee of the Board of Directors (the "Committee") granted a total of 320,000 performance-based stock options (including forfeitures). The Performance-Based Option Awards have an exercise price of $ 18.37 , a term of five years and generally will become exercisable (provided the optionee remains employed by the Company or an affiliate) upon our attainment of at least $600,000 in revenues during any of our four-fiscal-quarter trailing periods (as determined by the Committee) during the term. We have not recognized any expense on these Performance-Based Option Awards for the years ended December 31, 2016 and 2015 , since the revenue target is not deemed likely to be attained based on our current forecast. Service-Based Restricted Stock Units Service-based RSUs entitle the holder to receive one share of common stock for each unit when the unit vests. RSUs are issued to officers, key employees and non-employee directors as compensation. Generally, the RSUs vest over a three -year period. RSUs granted to non-employee directors have historically vested one month after granted, except beginning in 2016 they vest one year after granted. Upon vesting, the non-employee directors elect to either receive the stock associated with the RSU immediately, or defer receipt of the stock to a future date. The fair value of the RSUs is equivalent to the trading value of our common stock on the grant date. A summary of RSUs for all Plans is presented below: Units Weighted Weighted Aggregate Outstanding at January 1, 2016 505,170 $ 13.13 Granted 195,266 15.07 Released (102,967 ) 14.27 Forfeited (42,991 ) 16.75 Outstanding at December 31, 2016 554,478 $ 13.37 21.8 $ 12,420 Releasable at December 31, 2016 303,233 $ 11.34 33.7 $ 6,792 Years Ended December 31, 2016 2015 2014 Weighted-average grant date fair value $ 15.07 $ 17.31 $ 9.00 Intrinsic value of RSUs released $ 1,520 $ 2,933 $ 5,670 A summary of nonvested RSUs is presented below: RSUs Weighted Nonvested at January 1, 2016 218,849 $ 16.29 Granted 195,266 15.07 Vested (126,944 ) 15.19 Forfeited (35,926 ) 16.75 Nonvested at December 31, 2016 251,245 15.81 Years Ended December 31, 2016 2015 2014 Fair value of RSUs vested $ 1,928 $ 1,908 $ 2,055 Performance-Based Restricted Stock Units We grant performance-based restricted stock unit awards ("PSUs") to certain executives and key employees. Units are usually awarded in the range from zero percent to 200% of a targeted number of shares. The award rate for the 2014-2016, 2015-2017, and 2016-2018 PSUs is dependent upon our achievement of sales growth targets, cash flow targets, and relative total shareholder return ("RTSR") using a matrix based on the percentile ranking of our stock price performance compared to a peer group over a three -year period. These awards are weighted 35 % for achievement of the sales growth metric, 30% for achievement of the cash flow metric, and 35% for achievement of the RTSR metric. Other PSUs are granted from time to time based on other performance criteria. A summary of PSUs for all Plans is presented below: Units Weighted Weighted Aggregate Outstanding at January 1, 2016 249,560 $ 15.14 Granted 108,650 13.56 Released (234,517 ) 11.82 Forfeited (18,810 ) 15.86 Added by performance factor 97,017 $ 11.81 Outstanding at December 31, 2016 201,900 $ 16.48 44.2 $ 4,523 Releasable at December 31, 2016 — $ — — $ — The following table summarizes each grant of performance awards outstanding at December 31, 2016 : Description Grant Date Vesting Vesting Target Outstanding Maximum Number of Units to be Granted 2014-2016 Performance RSUs February 14, 2014 2017 35% RTSR, 35% sales growth, 30% cash flow 43,060 86,120 2015-2017 Performance RSUs February 5, 2015 2018 35% RTSR, 35% sales growth, 30% cash flow 62,000 124,000 2016-2018 Performance RSUs February 16, 2016 2019 35% RTSR, 35% sales growth, 30% cash flow 92,840 185,680 Single Crystal Performance RSUs March 31, 2016 2019 various 4,000 8,000 201,900 403,800 Cash-Settled Restricted Stock Units Cash-Settled RSUs entitle the holder to receive the cash equivalent of one share of common stock for each unit when the unit vests. These RSUs are issued to key employees residing in foreign locations as direct compensation. Generally, these RSUs vest over a three -year period. Cash-settled RSUs are classified as liabilities and are remeasured at each reporting date until settled. At December 31, 2016 , and 2015 , we had 12,074 and 7,958 cash-settled RSUs outstanding, respectively. At December 31, 2016 , and 2015 , liabilities of $170 and $94 , respectively were included in Accrued expenses and other liabilities on our Consolidated Balance Sheets. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The table below summarizes the financial assets and liabilities that were measured at fair value on a recurring basis as of December 31, 2016 and the loss recorded during the year ended December 31, 2016 : Asset (Liability) Carrying Quoted Prices Significant Significant (Gain) loss for Year Ended Interest rate swap — cash flow hedge $ 753 $ — $ 753 $ — $ (928 ) Foreign currency hedges $ (601 ) $ — $ (601 ) $ — $ 18 The table below summarizes the financial liability that was measured at fair value on a recurring basis as of December 31, 2015 and the loss recorded during the year ended December 31, 2015 : Asset (Liability) Carrying Quoted Prices Significant Significant Loss for Interest rate swap — cash flow hedge $ (768 ) $ — $ (768 ) $ — $ 768 The fair value of our interest rate swaps and foreign currency hedges were measured using standard valuation models using market-based observable inputs over the contractual terms, including forward yield curves, among others. There is a readily determinable market for these derivative instruments, but the market is not active and therefore they are classified within level 2 of the fair value hierarchy. The table below provides a reconciliation of the recurring financial assets and liabilities related to interest rate swaps and foreign currency hedges: Interest Rate Foreign Currency Hedges Balance at January 1, 2015 $ (1,020 ) $ — Total gains (losses) for the period: Included in earnings 768 — Included in other comprehensive earnings (516 ) — Balance at January 1, 2016 $ (768 ) $ — Settled in cash — 54 Total gains (losses) for the period: Included in earnings 928 (18 ) Included in other comprehensive earnings 593 (637 ) Balance at December 31, 2016 $ 753 $ (601 ) Our long-term debt consists of a revolving debt facility which is recorded at its carrying value. There is a readily determinable market for our revolving credit debt and it is classified within Level 2 of the fair value hierarchy as the market is not deemed to be active. The fair value of long-term debt approximates carrying value and was determined by valuing a similar hypothetical coupon bond and attributing that value to our credit facility. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Earnings before income taxes consist of the following: Years Ended December 31, 2016 2015 2014 U.S. $ 25,746 $ (141 ) $ 19,205 Non-U.S. 31,499 12,402 20,143 Total $ 57,245 $ 12,261 $ 39,348 Significant components of income tax provision/(benefit) are as follows: Years Ended December 31, 2016 2015 2014 Current: U.S. $ (1,312 ) $ 329 $ 945 Non-U.S. 13,729 12,482 6,981 Total Current 12,417 12,811 7,926 Deferred: U.S. 13,245 (15,795 ) 3,590 Non-U.S. (2,797 ) 8,291 1,310 Total Deferred 10,448 (7,504 ) 4,900 Total provision for income taxes $ 22,865 $ 5,307 $ 12,826 Significant components of our deferred tax assets and liabilities are as follows: As of December 31, 2016 2015 Post-retirement benefits $ 1,798 $ 1,837 Inventory reserves 1,834 1,797 Loss carry-forwards 7,279 9,387 Credit carry-forwards 22,743 35,082 Nondeductible accruals 11,629 12,406 Research expenditures 31,380 30,465 Stock compensation 2,681 2,070 Foreign exchange loss 1,780 2,522 Other 648 1,231 Gross deferred tax assets 81,772 96,797 Depreciation and amortization 9,960 9,814 Pensions 16,024 11,868 Subsidiaries' unremitted earnings 1,292 7,461 Gross deferred tax liabilities 27,276 29,143 Net deferred tax assets 54,496 67,654 Deferred tax asset valuation allowance (11,024 ) (10,266 ) Total net deferred tax assets $ 43,472 $ 57,388 The long-term deferred tax assets and long-term deferred tax liabilities are as follows below: As of December 31, 2016 2015 Non-current deferred tax assets 45,839 63,809 Non-current deferred tax liabilities (2,367 ) (6,421 ) Total net deferred tax assets 43,472 57,388 In 2016, we elected to early adopt ASU 2015-17 "Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes", on a retrospective basis allowing for all deferred tax items to be classified as non-current. The non-current deferred tax assets and non-current deferred tax liabilities were not netted since these items relate to different tax jurisdictions. Non-current deferred tax liabilities are included as a component of Other long-term obligations, on our Consolidated Balance Sheets at December 31, 2016 and 2015 . At each reporting date, we weigh all available positive and negative evidence to assess whether it is more-likely-than-not that the Company's deferred tax assets, including deferred tax assets associated with accumulated loss carryforwards and tax credits in the various jurisdictions in which it operates, will be realized. As of December 31, 2016 and 2015, we recorded deferred tax assets related to certain U.S. state and non-U.S. income tax loss carryforwards of $7,279 and $9,387 , respectively, and U.S. and non-U.S. tax credits of $22,743 and $ 35,082 , respectively. The deferred tax assets expire in various years primarily between 2017 and 2035. Generally, we assess if it is more-likely-than-not that our net deferred tax assets will be realized during the available carry-forward periods. However, we have determined that valuation allowances of $11,024 and $10,266 should be provided for certain deferred tax assets at December 31, 2016 and 2015 , respectively. As of December 31, 2016 , the valuation allowances relate to certain U.S. state and non-U.S. loss carry-forwards and certain U.S. state tax credits that management does not anticipate will be utilized. The increase in the valuation allowance from December 31, 2015, to December 31, 2016, is primarily due to the June 2016 restructuring activities and changes in management's judgment regarding realizability of the related assets. No valuation allowance was recorded in 2016 against the U.S. federal foreign tax credit carryforwards of $19,375 , which expire in varying amounts between 2019 and 2025, research and development tax credits of $4,311 . which expire in varying amounts between 2024 and 2035, and the alternative minimum tax credit carryforwards of $882 , which have no expiration. We assessed the anticipated realization of those tax credits utilizing future taxable income projections. Based on those projections, management believes it is more-likely-than-not that we will realize the benefits of these carryforwards. The following table reconciles taxes at the U.S. federal statutory rate to the effective income tax rate: Years Ended December 31, 2016 2015 2014 Taxes at the U.S. statutory rate 35.0 % 35.0 % 35.0 % State income taxes, net of federal income tax benefit 1.4 % (0.1 )% 0.7 % Non-U.S. income taxed at rates different than the U.S. statutory rate (7.5 )% (16.7 )% (7.6 )% Foreign source income, net of associated foreign tax credits 5.3 % 6.9 % 3.5 % Benefit of tax credits (1.0 )% (4.6 )% (1.3 )% Non-deductible expenses 0.7 % 1.3 % 2.8 % Adjustment to valuation allowances 3.8 % 37.8 % (0.4 )% Benefit from prior period foreign tax credits — % (133.0 )% — % Change in unrecognized tax benefits 3.3 % 59.5 % — % Impacts of unremitted foreign earnings 0.6 % 60.8 % — % Other (1.7 )% (3.6 )% (0.1 )% Effective income tax rate 39.9 % 43.3 % 32.6 % During 2015, we changed our position regarding the U.S. federal tax treatment of foreign taxes paid. We claimed a foreign tax credit on our 2014 and 2015 U.S. federal income tax returns and filed amended tax returns for 2006 through 2013 in order to claim non-U.S. taxes paid as a credit against income tax, rather than as a deduction. The filing of the amended returns reduced the deferred tax asset for federal loss carryforwards by $8,214 , and increased our available foreign tax credit carryforward by $24,519 , resulting in a net tax benefit of $16,305 , recorded in 2015. In general, it is our practice and intention to reinvest the earnings of our non-U.S. subsidiaries in those operations. However, during 2015, we determined that as a result of changes in the business, the foreign earnings of our subsidiaries in Canada and the U.K. were no longer permanently reinvested. Therefore, a provision for the expected taxes on repatriation of those earnings was recorded. In addition, although we plan to permanently reinvest the earnings of our Chinese facilities outside the U.S., we have determined that we will not maintain those earnings in China in order to mitigate future currency risk. As a result of these changes, we recorded a tax expense of $7,461 in 2015. Management intends to continue to permanently reinvest all other remaining current and prior earnings in jurisdictions located outside of the U.S. As of December 31, 2016, no provision has been made for U.S. income taxes on approximately $133,074 of foreign earnings, which are permanently reinvested outside of the U.S. Upon distribution of those earnings in the form of dividends or otherwise, we would be subject to U.S. income taxes net of related foreign tax credits, state income taxes, and withholding taxes payable to the various foreign countries. Determination of the amount of unrecognized deferred U.S. tax liability is not practical because of complexities such as potential foreign tax credits, local restrictions on distributions, and treaty implications associated with the related calculation. We recognize the financial statement benefit of a tax position when it is more-likely-than-not, based on its technical merits, that the position will be sustained upon examination. A tax position that meets the more-likely-than-not threshold is then measured to determine the amount of benefit recognized in the financial statements. As of December 31, 2016, we have approximately $12,347 of unrecognized tax benefits, which if recognized, would impact the effective tax rate. We do not anticipate any significant changes in our unrecognized tax benefits within the next 12 months. A reconciliation of the beginning and ending unrecognized tax benefits is provided below: 2016 2015 Balance at January 1 $ 11,008 $ 3,890 Increase related to current year tax positions 1,088 1,406 Increase related to prior year tax positions 251 5,728 Decrease as a result of lapse of statute of limitations — (16 ) Balance at December 31 $ 12,347 $ 11,008 Our continuing practice is to recognize interest and/or penalties related to unrecognized tax benefits as income tax expense. As of December 31, 2016 , and 2015 , $1,772 and $1,206 , respectively, of interest and penalties were accrued. We are subject to taxation in the U.S., various states, and in non-U.S. jurisdictions. Our U.S. income tax returns are primarily subject to examination from 2012 through 2015; however, U.S. tax authorities also have the ability to review prior tax years to the extent loss carryforwards and tax credit carryforwards are utilized. The open years for the non-U.S. tax returns range from 2008 through 2015 based on local statutes. |
Business Acquisitions
Business Acquisitions | 12 Months Ended |
Dec. 31, 2016 | |
Business Combinations [Abstract] | |
Business Acquisitions | Business Acquisitions On March 11, 2016, we acquired all of the outstanding membership interests in CTG Advanced Materials, LLC (“CTG-AM”), a privately-held company, for $73 million in cash plus a working capital adjustment. CTG-AM, formerly operated as H.C. Materials, is the market leading designer and manufacturer of single crystal piezoelectric materials, serving major original equipment manufacturers throughout the medical marketplace. These materials enable high definition ultrasound imaging (3D and 4D), as well as intravascular ultrasound applications. Other applications for these materials include wireless pacemakers, implantable hearing aids, and defense technologies. With the CTG-AM acquisition, we gained technology and proprietary manufacturing methods that expand our offering of piezoelectric materials. This allows us to become the leading large-scale commercial producer of both single crystal materials and traditional piezoelectric ceramics. The purchase price of $73,063, net of cash acquired of $ 4 , has been allocated to the fair values of assets and liabilities acquired as of March 11, 2016. The following table summarizes the fair values of the assets acquired and the liabilities assumed at the date of acquisition: Fair Values at March 11, 2016 Current assets $ 4,215 Property, plant and equipment 6,173 Other assets 37 Goodwill 27,879 Intangible assets 35,427 Fair value of assets acquired 73,731 Less fair value of liabilities acquired (668 ) Net cash paid 73,063 Goodwill recorded in connection with this acquisition represents the value we expect to be created by combining the operations of the acquired business with our existing operations, including the expansion into markets within our existing business, access to new customers, and potential cost savings and synergies. Goodwill related to this acquisition is expected to be deductible for tax purposes. The following table summarizes the carrying amounts and weighted average lives of the acquired intangible assets: Carrying Value Weighted Average Amortization Period (in years) Developed technology 23,730 15.0 Customer relationships and contracts 11,502 14.6 Other 195 0.8 Total 35,427 14.8 We incurred $ 804 in transaction related costs during the year ended December 31, 2016 . These costs are included in selling, general, and administrative costs in our Consolidated Statements of Earnings. Results of operations for CTG-AM are included in our consolidated financial statements beginning on March 11, 2016. The amount of net sales and net loss from CTG-AM since the acquisition date that have been included in the Consolidated Statements of Earnings are as follows: For the period March 11, 2016 through December 31, 2016 Net sales $ 12,299 Net earnings $ 1,357 The unaudited pro forma amounts below include CTG-AM's revenues and earnings that would have been included in our Consolidated Statement of Earnings had the acquisition date been January 1, 2015. December 31, 2016 (Unaudited Proforma) December 31, 2015 (Unaudited Proforma) Net sales $ 398,990 $ 395,495 Net earnings $ 34,321 $ 8,800 Earnings per share: Basic $ 1.05 $ 0.27 Diluted $ 1.03 $ 0.26 The pro forma results have been prepared for informational purposes only and include adjustments to amortize acquired intangible assets with finite life, reflect additional interest expense on debt used to fund the acquisition, and to record the tax consequences of the pro forma adjustments. Included in the pro forma results are nonrecurring expenses for transaction costs of $ 804 and additional costs of goods sold of $ 1,151 for the year ended December 31, 2016 . On October 28 2015, we acquired Filter Sensing Technologies Inc. (“FST”), a privately-held company, for $1.9 million in cash, plus contingent consideration of $1.6 million . FST is a developer and designer of sensing technology for radio frequency measurement and control systems. This acquisition added a leading-edge sensing technology to our transportation portfolio and allows the Company to participate in a market that is expected to be $150 - $300 million in size by 2025 as new filtering solutions gain traction. The following table summarizes the fair values of the assets acquired and the liabilities assumed at the date of acquisition: Fair Values at October 28, 2015 Current assets $ 555 Property, plant and equipment 29 Goodwill 1,818 In-process research and development intangible asset 2,200 Other assets 8 Fair value of assets acquired 4,610 Less fair value of liabilities acquired (1,205 ) Less fair value of contingent consideration (1,550 ) Net cash paid $ 1,855 Goodwill recorded in connection with the above acquisition is primarily attributable to know-how of the acquired workforce in relation to the technology being developed. Goodwill related to this acquisition is not expected to be deductible for tax purposes. The FST acquisition was accounted for using the acquisition method of accounting whereby the total purchase price is allocated to tangible and intangible assets and liabilities based on the fair market values on the date of acquisition. We determined the purchase price allocations based on estimates of the fair values of the assets acquired and liabilities assumed. The allocations for goodwill and other intangible assets were based on historical experience and third party evaluation. |
Geographic Data
Geographic Data | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Geographic Data | Geographic Data Financial information relating to our operations by geographic area were as follows: Net Sales Years Ended December 31, 2016 2015 2014 United States $ 276,033 $ 238,796 $ 234,323 Singapore 6,668 8,379 11,510 China 59,506 55,825 61,683 Canada — 24,519 35,145 Czech Republic 34,767 36,348 44,424 Other non-U.S. 19,705 18,443 16,936 Consolidated net sales $ 396,679 $ 382,310 $ 404,021 Sales are attributed to countries based upon the origin of the sale. Long-Lived Assets Years Ended December 31, 2016 2015 United States $ 42,488 $ 32,239 China 33,013 30,937 United Kingdom 569 1,042 Taiwan 2,755 2,694 Czech Republic 2,634 2,029 Other non-U.S 652 931 Consolidated long-lived assets $ 82,111 $ 69,872 |
Quarterly Financial Data
Quarterly Financial Data | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data | Quarterly Financial Data Quarterly Results of Operations (Unaudited) First Second Third Fourth 2016 Net sales $ 96,705 $ 98,693 $ 99,697 $ 101,584 Gross margin $ 33,468 $ 34,457 $ 36,641 $ 35,861 Operating earnings $ 12,433 $ 24,097 $ 12,490 $ 14,146 Net earnings $ 7,863 $ 14,487 $ 3,720 $ 8,310 Basic earnings per share $ 0.24 $ 0.44 $ 0.11 $ 0.25 Diluted earnings per share $ 0.24 $ 0.44 $ 0.11 $ 0.25 2015 Net sales $ 98,311 $ 100,071 $ 90,646 $ 93,282 Gross margin $ 32,136 $ 33,373 $ 31,446 $ 30,154 Operating earnings $ 10,488 $ 10,544 $ (3,850 ) $ 931 Net earnings $ 6,287 $ 19,080 $ (4,760 ) $ (13,653 ) Basic earnings per share $ 0.19 $ 0.58 $ (0.15 ) $ (0.42 ) Diluted earnings per share $ 0.19 $ 0.57 $ (0.15 ) $ (0.42 ) |
SCHEDULE II - VALUATION AND QUA
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Dec. 31, 2016 | |
Valuation and Qualifying Accounts [Abstract] | |
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | CTS CORPORATION SCHEDULE II — VALUATION AND QUALIFYING ACCOUNTS Additions (in thousands) Balance at Charged/ Charged Deductions Balance Year ended December 31, 2016 $ 133 $ 44 $ — $ (7 ) $ 170 Year ended December 31, 2015 $ 100 $ 33 $ — $ — $ 133 Year ended December 31, 2014 $ 130 $ (38 ) $ — $ 8 $ 100 |
Summary of Significant Accoun29
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Description of Business | Description of Business: CTS Corporation ("CTS", "we", "our", "us" or the "Company") is a global manufacturer of sensors, electronic components, and actuators. We operate manufacturing facilities located throughout North America, Asia and Europe and services major markets globally. CTS consists of one reportable business segment. |
Principles of Consolidation | Principles of Consolidation: The consolidated financial statements include the accounts of CTS and its wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated. |
Fiscal Calendar | Fiscal Calendar: Beginning in 2016, we began using a calendar period end. Prior to 2016, we operated on a 4 week/ 4 week/ 5 week fiscal quarter, and each fiscal quarter ended on a Sunday. The fiscal year always began on January 1 and ended on December 31. Our fiscal calendar resulted in some fiscal quarters being either greater than or less than 13 weeks, depending on the days of the week on which those dates fell. |
Use of Estimates | Use of Estimates: The preparation of financial statements in conformity with the accounting principles generally accepted in the United States of America ("U.S. GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from those estimates. |
Cash and Cash Equivalents | Cash and Cash Equivalents: All highly liquid investments with maturities of three months or less at the date of purchase are considered to be cash equivalents. |
Accounts Receivable and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Doubtful Accounts: Accounts receivable consists primarily of amounts due from normal business activities. We maintain an allowance for doubtful accounts for estimated uncollectible accounts receivable. Our reserves for estimated credit losses based upon historical experience and specific customer collection issues. Accounts are written off against the allowance account when they are determined to no longer be collectible. |
Concentration of Credit Risk | Concentration of Credit Risk: Financial instruments that potentially subject us to concentrations of credit risk consist of cash and cash equivalents. Our cash and cash equivalents, at times, may exceed federally insured limits. Cash and cash equivalents are deposited primarily in banking institutions with global operations. We have not experienced any losses in such accounts. We believe we are not exposed to any significant credit risk on cash and cash equivalents. Trade receivables subject us to the potential for credit risk with major customers. We sell our products to customers principally in the transportation, industrial, medical, information technology, defense and aerospace, and communications markets, primarily in North America, Europe, and Asia. We perform ongoing credit evaluations of our customers to minimize credit risk. We do not require collateral. The allowance for doubtful accounts is based on management's estimates of the collectability of its accounts receivable after analyzing historical bad debts, customer concentrations, customer creditworthiness, and current economic trends. Uncollectible trade receivables are charged against the allowance for doubtful accounts when all reasonable efforts to collect the amounts due have been exhausted. |
Inventories | Inventories: We value our inventories at the lower of the actual cost to purchase or manufacture or the net realizable value using the first-in, first-out ("FIFO") method. We review inventory quantities on hand and record a provision for excess and obsolete inventory based on forecasts of product demand and production requirements. |
Retirement Plans | Retirement Plans: We have various defined benefit and defined contribution retirement plans. Our policy is to annually fund the defined benefit pension plans at or above the minimum required by law. We: 1) recognize the funded status of a benefit plan (measured as the difference between plan assets at fair value and the benefit obligation) in our Consolidated Balance Sheets; 2) recognize the gains or losses and prior service costs or credits that arise during the period but are not recognized as components of net periodic benefit/cost as a component of Other comprehensive earnings; and 3) measure defined benefit plan assets and obligations as of the date of our fiscal year-end. See NOTE 5, "Retirement Plans" for further information. |
Property, Plant and Equipment | Property, Plant and Equipment: Property, plant and equipment is stated at cost. Depreciation and amortization is computed primarily over the estimated useful lives of the various classes of assets using the straight-line method. Useful lives for buildings and improvements range from 10 to 45 years . Machinery and equipment useful lives range from 3 to 8 years . Depreciation on leasehold improvements is computed over the lease term or estimated useful lives of the assets. Amounts expended for maintenance and repairs are charged to expense as incurred. Upon disposition, any related gains or losses are included in operating earnings. |
Income Taxes | Income Taxes: We account for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, we determine deferred tax assets and liabilities on the basis of the differences between the financial statement and tax bases of assets and liabilities by using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. We recognize deferred tax assets to the extent that we believe that these assets are more-likely-than-not to be realized. In making such a determination, we consider all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. If we determine that we would be able to realize our deferred tax assets in the future in excess of their net recorded amount, we would make an adjustment to the deferred tax asset valuation allowance, which would reduce the provision for income taxes. In 2016, we elected to early adopt ASU 2015-17 "Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes", on a retrospective basis allowing for all deferred tax items to be classified as non-current. The non-current deferred tax assets and non-current deferred tax liabilities were not netted since these items relate to different tax jurisdictions. We record uncertain tax positions in accordance with ASC 740 on the basis of a two-step process in which (1) we determine whether it is more-likely-than-not that the tax positions will be sustained on the basis of the technical merits of the position and (2) for those tax positions that meet the more-likely-than-not recognition threshold, we recognize the largest amount of tax benefit that is more than 50 percent likely to be realized upon ultimate settlement with the related tax authority. We recognize interest and penalties related to unrecognized tax benefits on the income tax expense line in the accompanying Consolidated Statements of Operations. Accrued interest and penalties are included on the related tax liability line in the Consolidated Balance Sheets. See NOTE 17, "Income Taxes" for further information. |
Goodwill and Other Intangible Assets | Goodwill and Indefinite-lived Intangible Assets: Goodwill represents the excess of the purchase price over the fair values of the net assets acquired in a business combination. We test the impairment of goodwill at least annually, or more frequently if events or changes in circumstances indicate that the carrying value may not be recoverable. The impairment evaluation utilizes a two-step test. The first step compares the fair value of each reporting unit to its carrying value, including goodwill. If the fair value of the reporting unit is equal to or greater than its carrying value, goodwill is not impaired and no further testing is required. If the carrying value exceeds fair value, then the second step of the impairment test is performed in order to determine if the implied fair value of the goodwill of the reporting unit exceeds the carrying value of that goodwill. Goodwill is impaired when the carrying value of the goodwill exceeds its implied fair value. Impaired goodwill is written down to its implied fair value through a non-cash expense recorded in results of operations in the period the impairment is identified. In 2015, we changed the date of our annual impairment test from the last day of our fiscal year to the first day of our fourth quarter. This change did not have a material effect on the results of our impairment test. We completed our annual impairment test during 2016 and determined that our goodwill was not impaired as of the measurement date. No goodwill impairment was recorded for the years ended December 31, 2016, 2015 and 2014. We also have acquired in-process research and development ("IPR&D") intangible assets that are treated as indefinite-lived intangible assets and therefore not subject to amortization until the completion or abandonment of the associated research and development efforts. If these efforts are abandoned in the future, the carrying value of the IPR&D asset will be expensed. If the research and development efforts are successfully completed, the IPR&D will be reclassified as a finite-lived asset and amortized over its useful life. No impairment was recorded for the years ended December 31, 2016, 2015 and 2014. Other Intangible Assets and Long-lived Assets: We account for long-lived assets (excluding indefinite-lived intangible assets) in accordance with the provisions of ASC 360. This statement requires that long-lived assets, which includes fixed assets and finite-lived intangible assets, be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If an impairment test is warranted, recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the sum of the undiscounted cash flows expected to result from the use and the eventual disposition of the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount in which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell. Intangible assets (excluding indefinite-lived intangible assets) consist primarily of customer lists and relationships, patents, technology, and other intangibles. These assets are recorded at cost and usually amortized on a straight-line basis over their estimated lives. We assess useful lives based on the period over which the asset is expected to contribute to cash flows. |
Revenue Recognition | Revenue Recognition: Product revenue is recognized once four criteria are met: 1) We have persuasive evidence that an arrangement exists; 2) delivery has occurred and title has passed to the customer, which generally happens at the point of shipment provided that no significant obligations remain; 3) the price is fixed and determinable; and 4) collectability is reasonably assured. |
Research and Development | Research and Development: Research and development ("R&D") costs include expenditures for planned search and investigation aimed at discovery of new knowledge to be used to develop new products or processes or to significantly enhance existing products or production processes. R&D costs also include the implementation of new knowledge through design, testing of product alternatives, or construction of prototypes. We expense all R&D costs as incurred, net of customer reimbursements for sales of prototypes and non-recurring engineering charges. We create prototypes and tools related to R&D projects. A prototype is defined as a constructed product not intended for production resulting in a commercial sale. We also incur engineering costs related to R&D activities. Such costs are incurred to support such activities to improve the reliability, performance and cost-effectiveness of our existing products and to design and develop innovative products that meet customer requirements for new applications. Furthermore, we may engage in activities that develop tooling machinery and equipment for our customers. |
Financial Instruments | Financial Instruments: We use forward contracts to mitigate currency risk related to forecasted foreign currency revenue and costs. These forward contracts are designed as cash flow hedges. At least quarterly, we assess the effectiveness of these hedging relationships based on the total change in their fair value using regression analysis. In addition, we use interest rate swaps to convert a portion of our revolving credit facility's variable rate of interest into a fixed rate. As a result of the use of these derivative instruments, the Company is exposed to the risk that counterparties to derivative contracts will fail to meet their contractual obligations. To mitigate the counterparty credit risk, the Company has a policy of only entering into contracts with carefully selected major financial institutions based upon their credit ratings and other factors and by using netting agreements. Our established policies and procedures for mitigating credit risk on principal transactions include reviewing and establishing limits for credit exposure and continually assessing the creditworthiness of counterparties. We estimate the fair value of our financial instruments as follows: Instrument Method for determining fair value Cash, cash equivalents, accounts receivable and accounts payable Cost, approximates fair value due to the short-term nature of these instruments. Revolving credit facility The fair value of long-term debt approximates carrying value and was determined by valuing a similar hypothetical coupon bond and attributing that value to our credit facility. Interest rate swaps and forward contracts The fair value of our interest rate swaps and forward contracts are measured using a market approach which uses current industry information. |
Debt Issuance Costs | Debt Issuance Costs: We have debt issuance costs related to our long-term debt that is being amortized using the straight-line method over the life of the debt. |
Equity-Based Compensation | Stock-Based Compensation: We recognize expense related to the fair value of stock-based compensation awards, consisting of restricted stock units ("RSUs"), cash-settled restricted stock units, and stock options, in the Consolidated Statements of Earnings. We estimate the fair value of stock option awards on the date of grant using the Black-Scholes option pricing model. A number of assumptions are used by the Black-Scholes option pricing model to compute the grant date fair value of an award, including expected price volatility, option term, risk-free interest rate, and dividend yield. These assumptions are established at each grant date based upon current information at that time. Expected volatilities are based on historical volatilities of CTS' common stock. The expected option term is derived from historical data of exercise behavior. Actual option terms can differ from the expected option terms as a result of different groups of employees exhibiting different exercise behavior. The dividend yield is based on historical dividend payments. The risk-free rate for periods within the contractual life of the option is based on the U.S. Treasury yield curve at the time of grant. The fair value of awards that are ultimately expected to vest is recognized as expense over the requisite service periods of the awards in the Consolidated Statements of Earnings. The grant date fair values of our service-based and performance-based RSUs are the closing price of our common stock on the date of grant. The grant date fair value of our market-based RSUs is determined by using a simulation, or Monte Carlo, approach. Under this approach, stock returns from a comparative group of companies are simulated over the performance period, considering both stock price volatility and the correlation of returns. The simulated results are then used to estimate the future payout based on the performance and payout relationship established by the conditions of the award. The future payout is discounted to the measurement date using the risk-free interest rate. Both our stock options and RSUs primarily have a graded vesting schedule. We recognize expense on a straight-line basis over the requisite service period for each separately vesting portion of the award as if the award was, in substance, multiple awards. See NOTE 15, "Stock-Based Compensation" for further information. In 2016, we elected to early adopt the provisions of ASU 2016-09. Pursuant to this adoption, we recorded excess tax benefits within income tax expense for the year ended December 31, 2016, where previously these were recorded as increases or decreases to additional contributed capital. In addition, we have elected to account for forfeitures of awards as they occur. Both of these changes have been applied prospectively, and therefore no adjustments were made to prior periods. In accordance with the guidance, we retrospectively reported cash paid on behalf of employees for withholding shares for tax-withholding purposes as a financing activity in the Consolidated Statements of Cash Flows. Additionally, excess tax benefits were classified as an operating activity, applied prospectively. Adoption of this ASU did not result in a material change in our earnings, cash flows, or financial position. |
Earnings Per Share | Earnings Per Share: Basic earnings per share excludes any dilution and is computed by dividing net earnings available to common shareholders by the weighted-average number of common shares outstanding for the period. Diluted earnings per share reflects the potential dilution that could occur if dilutive securities, such as stock options and unvested restricted stock units, were exercised or resulted in the issuance of common stock. Diluted earnings per share is calculated by adding all potentially dilutive shares to the weighted average number of common shares outstanding for the numerator. If the common stock equivalents have an anti-dilutive effect, they are excluded from the computation of diluted earnings per share. |
Foreign Currencies | Foreign Currencies: The financial statements of our non-U.S. subsidiaries, except the United Kingdom ("U.K.") subsidiary, are remeasured into U.S. dollars using the U.S. dollar as the functional currency with all remeasurement adjustments included in the determination of net earnings. Foreign currency loss recorded in the Consolidated Statement of Earnings includes the following: Years Ended December 31, 2016 2015 2014 Foreign currency losses $ (3,714 ) $ (6,299 ) $ (4,130 ) The assets and liabilities of our U.K. subsidiary are translated into U.S. dollars at the current exchange rate at period end, with the resulting translation adjustments made directly to the "Accumulated other comprehensive loss" component of shareholders' equity. Consolidated Statement of Earnings accounts are translated at the average rates during the period. |
Shipping and Handling | Shipping and Handling: All fees billed to the customer for shipping and handling is classified as a component of net sales. All costs associated with shipping and handling is classified as a component of cost of goods sold. |
Sales Tax | Sales Taxes: We classify sales taxes on a net basis in our consolidated financial statements. |
Reclassifications [Text Block] | Reclassifications: Certain prior period reclassifications have been made in the Consolidated Balance Sheet as a result of including our other post-retirement benefit plan liabilities in Post-retirement obligations as well as the retrospective application of a new accounting pronouncement upon the adoption of ASU 2015-17 related to the presentation of deferred tax assets and liabilities. The chart below quantifies the effects of these reclassification adjustments on our December 31, 2015, financial statements: At December 31, 2015 Consolidated Balance Sheet Line Item As previously reported Reclassification adjustment As currently reported Other current assets $ 15,888 $ (6,025 ) $ 9,863 Deferred income taxes $ 58,544 $ 5,265 $ 63,809 Accrued expenses and other liabilities $ (53,905 ) $ 6,731 $ (47,174 ) Long-term pension obligations $ (2,703 ) $ (4,527 ) $ (7,230 ) Other long-term obligations $ (7,725 ) $ (1,444 ) $ (9,169 ) |
Recent Accounting Pronouncements | Recently Issued Accounting Pronouncements ASU 2016-16 "Income Taxes (Topic 740) Intra-Entity Transfers of Assets Other Than Inventory" In October 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2016-16, "Intra-Entity Transfers of Assets Other Than Inventory" . This ASU is meant to improve the accounting for the income tax effect of intra-entity transfers of assets other than inventory. Currently, US GAAP prohibits the recognition of current and deferred income taxes for intra-entity asset transfers until the asset is sold to a third party. This ASU will now require companies to recognize the income tax effect of an intra-entity asset transfer (other than inventory) when the transaction occurs. This ASU is effective, for public companies, for fiscal years beginning after December 15, 2019 and interim periods within those annual reporting periods. Early adoption is permitted and is to be applied on a modified retrospective bases through a cumulative-effect adjustment to retained earnings as of the beginning of the period of adoption. This guidance is not expected to have a material impact on our consolidated financial statements. ASU 2016-15 "Statement of Cash Flows (Topic 230) Classification of Certain Cash Receipts and Cash Payments" In August 2016, the FASB issued ASU No. 2016-15, "Classification of Certain Cash Receipts and Cash Payments". This ASU reduces the diversity in reporting of eight specific cash flow issues due to accounting guidance that is unclear or does not exist. The eight issues relate to certain debt activities, business combination activities, insurance settlements and other various activities. This guidance is effective for fiscal years beginning after December 15, 2017 and interim periods within those fiscal years. Early adoption is permitted and is to be applied retrospectively using a transition method for each period presented. An entity that elects early adoption of the amendment under this ASU must adopt all aspects of the amendment in the same period. This guidance is not expected to have a material impact on our consolidated financial statements. ASU 2016-09 "Compensation-Stock Compensation (Topic 718): Improvement to Employee Share Based Payment Accounting" In March 2016, the FASB issued ASU No. 2016-09, “Improvements to Employee Share-Based Payment Accounting.” This ASU simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences of excess tax benefits, forfeitures, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The guidance is effective for annual reporting periods beginning after December 15, 2016, including interim periods. Early adoption is permitted. An entity that elects early adoption of the amendment under this ASU must adopt all aspects of the amendment in the same period. In 2016, we elected to early adopt the provisions of ASU 2016-09 as described in more detail in the Stock-Based Compensation section of Note 1 above. Adoption of ASU 2016-09 did not have a material effect on our earnings, cash flows, or financial position. ASU 2016-05 "Derivatives and Hedging (Topic 815): Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships" In March 2016, the FASB issued ASU No. 2016-05 "Derivatives and Hedging (Topic 815): Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships". This amendment clarifies that a change in the counterparty to a derivative instrument does not on its own require dedesignation of the hedging instrument under Topic 815, provided that all other hedge accounting criteria (including those in paragraphs 815-20-35-14 through 35-18) continue to be met. This update can be applied prospectively or retrospectively and is effective for fiscal years beginning after December 15, 2016, and interim periods within those years. This guidance is not expected to have a material impact on our consolidated financial statements. ASU 2016-02 "Leases (Topic 842)" In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)". This amendment created a new Topic under the accounting standards codification to account for the provisions of the ASU. This amendment is meant to provide transparency and to improve comparability between entities. The ASU requires companies to record an asset and liability on the balance sheet for leases that were formerly designated as operating leases as well as leases designated as financing leases. The provisions of the ASU predominately change the recognition of leases for lessees, the provisions do not substantially change the accounting for lessors. This ASU will supersede the provisions of Topic 840 Leases. The liability recorded for a lease is meant to recognize the lease payments and the asset as a right to use the underlying asset for the lease, including optional periods if it is reasonably certain the option will be exercised. Recording of the liability should be based on the present value of the lease payments. If a lease term is less than twelve months, a company is allowed to elect not to record the asset and liability. Expense related to these leases are to be amortized straight-line over the term of the lease. Additionally, the provisions of this ASU provide additional guidance on separating lease terms from maintenance and other type of provisions that provide a good or service, accounting for sale-leaseback provisions, and leveraged leases. Reporting in the cash flow statement remains virtually unchanged. Additional qualitative and quantitative disclosures are required. These updates are required to be applied under a modified retrospective approach from the beginning of the earlier period presented. The modified approach provides optional practical expedients that may be elected, which will allow companies to continue to account for leases under the previous guidance for leases that commenced prior to the effective date. The provisions of this ASU are effective for fiscal years beginning after December 15, 2018, and interim periods within those periods. Early adoption is allowed. The provisions of this guidance are still being evaluated and the impact on our financial statements has not yet been determined. ASU 2015-17, “Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes” In November 2015, the FASB issued ASU 2015-17, "Income Taxes Topic 740: Balance Sheet Classification of Deferred Taxes". The amendment requires companies to begin classifying all deferred income taxes as non-current. The provisions are expected to simplify the presentation of deferred income taxes and align the presentation of deferred income taxes with International Financial Reporting Standards ("IFRS"). The amendments in this update are effective for annual periods beginning after December 16, 2016 and interim periods within those annual periods. The update can be applied prospectively or retrospectively. In 2016, we elected to early adopt ASU 2015-17, applying this standard retrospectively. Reclassifications to the Consolidated Balance Sheet at December 31, 2015 are shown in the Reclassifications section of Note 1 above. ASU 2015-11. “Inventory (Topic 330): Simplifying the Measurement of Inventory” In July 2015, the FASB issued ASU 2015-11, "Inventory (Topic 330) Simplifying the Measurement of Inventory". The amendments clarify that an entity should measure inventory within the scope of this update at the lower of cost and net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Substantial and unusual losses that result from subsequent measurement of inventory should be disclosed in the financial statements. This ASU is effective for fiscal years beginning after December 15, 2016, including interim periods within those annual periods. The amendments are to be applied prospectively with earlier application permitted as of the beginning of an interim or annual reporting period. This guidance is not expected to have a material impact on our consolidated financial statements. ASU 2015-04, “ Compensation - Retirement Benefits (Topic 715): Practical Expedient for the Measurement Date of an Employer’s Benefit Obligation and Plan Assets ” In April 2015, FASB issued ASU 2015-04, “Compensation-Retirement Benefits (Topic 715): Practical Expedient for the Measurement Date of an Employer’s Defined Benefit Obligation and Plan Assets”. The amended guidance permits companies to use a practical expedient, which allows an employer to measure defined benefit plan assets and obligations as of the month-end date that is closest to the employer’s fiscal year-end (alternative measurement date). An employer using this policy election must apply it consistently to all of its defined benefit plans. In accordance with this ASU, an employer using the practical expedient is required to adjust the funded status for contributions and other significant events (as defined in paragraph 715-30-35-66) occurring between the alternative measurement date and its fiscal year-end. Paragraph 715-30-35-66 defines a significant event as: a plan amendment, settlement, or curtailment that calls for remeasurement. This ASU also allows employers the use of the practical expedient in interim remeasurements of significant events. The employer would be required to disclose the election to use the practical expedient and the measurement date of the plan assets and obligations. Early application of this ASU is permitted. Entities must apply the guidance prospectively. In 2016, we adopted the provisions of this ASU and it did not have an impact on our financial statements. ASU 2014-09 , "Revenue from Contracts with Customers (Topic 606)" In May 2014, the FASB issued ASU 2014-09, "Revenue from Contracts with Customers (Topic 606)". The guidance in this ASU affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards (for example, insurance contracts or lease contracts). The new revenue recognition guidance more closely aligns U.S. GAAP with International Financial Reporting Standards ("IFRS"). The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, an entity should apply the following steps: Step 1: Identify the contract(s) with a customer. Step 2: Identify the performance obligations in the contract. Step 3: Determine the transaction price. Step 4: Allocate the transaction price to the performance obligations in the contract. Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation. In August 2015, the FASB issued ASU 2015-14: Accounting for Revenue from Contracts with Customers (Topic 606) " The amended guidance deferred the effective date of ASU 2014-9 to annual periods beginning after December 15, 2017 and interim periods within those fiscal years. Early adoption is permitted for annual periods beginning after December 15, 2016 and interim periods within those fiscal years. In addition, four other ASUs have been issued amending and clarifying ASU 2014-09 and must be adopted concurrently. • ASU 2016-08 "Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) • ASU 2016-10 "Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing" • ASU 2016-12 "Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients" • ASU 2016-20 "Revenue from Contracts with Customers (Topic 606): Technical Corrections and Improvements" This update can either be applied under a cumulative effect or retrospective method. The Company is continuing to assess the potential effects of the standard and the impact of ASU 2014-09 on our financial statements the impact has not yet been determined. The Company has not yet selected a transition method and plans to adopt ASU 2014-09 effective January 1, 2018. |
Subsequent Events | Subsequent Events: We have evaluated subsequent events and transactions for potential recognition or disclosure in the financial statements through the date the financial statements are issued |
Summary of Significant Accoun30
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Summary of net sales to significant customers as a percentage of total net sales | Our net sales to significant customers as a percentage of total net sales were as follows: Years Ended December 31, 2016 2015 2014 Honda Motor Co. 10.7% 10.7% 10.8% Toyota Motor Corporation 10.4% 10.1% 8.4% |
Summary of Molds, Dies and Other Tools | December 31, 2016 2015 Cost of molds, dies and other tools included in Other current assets $ 2,837 $ 3,969 |
Summary of customer reimbursement receivable | A summary of amounts received from customers is as follows: Years Ended December 31, 2016 2015 2014 Reimbursements received from customers $ 2,036 $ 1,861 $ 1,400 |
Fair Value Measurements, Recurring and Nonrecurring | We estimate the fair value of our financial instruments as follows: Instrument Method for determining fair value Cash, cash equivalents, accounts receivable and accounts payable Cost, approximates fair value due to the short-term nature of these instruments. Revolving credit facility The fair value of long-term debt approximates carrying value and was determined by valuing a similar hypothetical coupon bond and attributing that value to our credit facility. Interest rate swaps and forward contracts The fair value of our interest rate swaps and forward contracts are measured using a market approach which uses current industry information. |
Summary of foreign currency gain (loss) recorded in the statement of operations | Foreign currency loss recorded in the Consolidated Statement of Earnings includes the following: Years Ended December 31, 2016 2015 2014 Foreign currency losses $ (3,714 ) $ (6,299 ) $ (4,130 ) |
Options | |
Summary of antidilutive stock options | Our antidilutive stock options and RSUs consist of the following: Years Ended December 31, (units) 2016 2015 2014 Antidilutive stock options and RSUs 35,189 13,979 — |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Receivables [Abstract] | |
Components of Accounts Receivable | The components of accounts receivable are as follows: As of December 31, 2016 2015 Accounts receivable, gross $ 62,782 $ 54,696 Less: Allowance for doubtful accounts (170 ) (133 ) Accounts receivable, net $ 62,612 $ 54,563 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Inventory Disclosure [Abstract] | |
Summary of Inventories | Inventories consist of the following: As of December 31, 2016 2015 Finished goods $ 7,513 $ 6,972 Work-in-process 9,596 6,828 Raw materials 17,680 16,991 Less: Inventory reserves (6,137 ) (6,191 ) Inventories, net $ 28,652 $ 24,600 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Summary of Property, Plant and Equipment Assets | Property, plant and equipment is comprised of the following: As of December 31, 2016 2015 Land $ 2,330 $ 2,401 Buildings and improvements 63,621 65,731 Machinery and equipment 213,198 191,212 Less: Accumulated depreciation (197,038 ) (189,472 ) Property, plant and equipment, net $ 82,111 $ 69,872 |
Summary of Depreciation Expense | Depreciation expense recorded in the Consolidated Statements of Earnings includes the following: For the Years Ended 2016 2015 2014 Depreciation expense $ 13,177 $ 12,219 $ 12,781 |
Retirement Plans (Tables)
Retirement Plans (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Long-Duration Contracts, Assumptions by Product and Guarantee [Line Items] | |
Reconciliation of Benefit Obligation, Plan Assets, and Funded Status | The following table provides a reconciliation of benefit obligation, plan assets, and the funded status of the pension plans for U.S. and non-U.S. locations at the measurement dates. U.S. Pension Plans Non-U.S. Pension Plans 2016 2015 2016 2015 Accumulated benefit obligation $ 247,276 $ 256,924 $ 2,295 $ 2,247 Change in projected benefit obligation: Projected benefit obligation at January 1 $ 256,924 $ 284,365 $ 2,796 $ 16,168 Service cost 87 171 51 63 Interest cost 11,024 11,258 46 465 Benefits paid (20,537 ) (21,526 ) (289 ) (691 ) Actuarial (gain) loss (222 ) (17,344 ) 229 (131 ) Plan settlement — — — (12,786 ) Foreign exchange impact — — 33 (292 ) Projected benefit obligation at December 31 $ 247,276 $ 256,924 $ 2,866 $ 2,796 Change in plan assets: Assets at fair value at January 1 $ 289,315 $ 314,453 $ 1,480 $ 15,128 Actual return on assets 23,163 (3,723 ) 11 (538 ) Company contributions 103 111 303 1,275 Benefits paid (20,537 ) (21,526 ) (289 ) (691 ) Plan settlement — — — (13,437 ) Foreign exchange impact — — 18 (257 ) Assets at fair value at December 31 $ 292,044 $ 289,315 $ 1,523 $ 1,480 Funded status (plan assets less projected benefit obligations) $ 44,768 $ 32,391 $ (1,343 ) $ (1,316 ) The measurement dates for the post-retirement life insurance plan were December 31, 2016 , and 2015 . The following table provides a reconciliation of benefit obligation, plan assets, and the funded status of the post-retirement life insurance plan at that measurement dates. Post-Retirement 2016 2015 Accumulated benefit obligation $ 4,952 $ 4,885 Change in projected benefit obligation: Projected benefit obligation at January 1 $ 4,886 $ 5,194 Service cost 3 5 Interest cost 207 204 Benefits paid (165 ) (172 ) Actuarial loss (gain) 21 (345 ) Projected benefit obligation at December 31 $ 4,952 $ 4,886 Change in plan assets: Assets at fair value at January 1 $ — $ — Actual return on assets — — Company contributions 165 172 Benefits paid (165 ) (172 ) Other — — Assets at fair value at December 31 $ — $ — Funded status (plan assets less projected benefit obligations) $ (4,952 ) $ (4,886 ) |
Components of Prepaid (Accrued) Cost | The components of the prepaid (accrued) cost of the domestic and foreign pension plans, net are classified in the following lines in the Consolidated Balance Sheets at December 31: U.S.Pension Plans Non-U.S. Pension Plans 2016 2015 2016 2015 Prepaid pension asset $ 46,183 $ 33,779 $ — $ — Accrued expenses and other liabilities (317 ) — — — Long-term pension obligations (1,098 ) (1,388 ) (1,343 ) (1,316 ) Net prepaid (accrued) cost $ 44,768 $ 32,391 $ (1,343 ) $ (1,316 ) The components of the accrued cost of the post-retirement life insurance plan, net are classified in the following lines in the Consolidated Balance Sheets at December 31: Post-Retirement 2016 2015 Accrued expenses and other liabilities $ (387 ) $ (360 ) Long-term pension obligations (4,565 ) (4,526 ) Total accrued cost $ (4,952 ) $ (4,886 ) |
Accumulated Other Comprehensive Loss | We have also recorded the following amounts to accumulated other comprehensive loss for the U.S. and non-U.S. pension plans, net of tax: U.S.Pension Plans Non-U.S. Pension Plans Unrecognized Prior Total Unrecognized Balance at January 1, 2015 $ 96,194 $ — $ 96,194 $ 8,490 Amortization of retirement benefits, net of tax (3,956 ) — (3,956 ) (1,507 ) Settlements and curtailments — — — (5,355 ) Net actuarial gain 4,150 — 4,150 640 Foreign exchange impact — — — (629 ) Balance at January 1, 2016 $ 96,388 $ — $ 96,388 $ 1,639 Amortization of retirement benefits, net of tax (3,817 ) — (3,817 ) 85 Settlements and curtailments — — — Net actuarial (loss) gain (2,808 ) — (2,808 ) 12 Foreign exchange impact — — — 7 Balance at December 31, 2016 $ 89,763 $ — $ 89,763 $ 1,743 We have recorded the following amounts to accumulated other comprehensive loss for post-retirement life insurance plan, net of tax: Unrecognized Balance at January 1, 2015 $ (517 ) Amortization of retirement benefits, net of tax 63 Net actuarial loss (215 ) Balance at January 1, 2016 $ (669 ) Amortization of retirement benefits, net of tax 95 Net actuarial gain 14 Balance at December 31, 2016 $ (560 ) |
Projected Benefit Obligation Accumulated Benefit Obligation and Fair Value of Plan Assets | The projected benefit obligation, accumulated benefit obligation and fair value of plan assets for those Pension Plans with accumulated benefit obligation in excess of fair value of plan assets is shown below: As of December 31, 2016 2015 Projected benefit obligation $ 4,281 $ 4,184 Accumulated benefit obligation 3,710 3,635 Fair value of plan assets 1,523 1,480 |
Net Pension Income or Postretirement Expense | Net pension (income) expense includes the following components: Years Ended Years Ended U.S. Pension Plans Non-U.S. Pension Plans 2016 2015 2014 2016 2015 2014 Service cost $ 87 $ 171 $ 192 $ 51 $ 63 $ 83 Interest cost 11,024 11,258 12,214 46 465 608 Expected return on plan assets (1) (18,976 ) (20,272 ) (20,833 ) (26 ) (446 ) (677 ) Amortization of unrecognized loss 5,994 6,339 5,644 140 7,492 231 Additional cost due to early retirement — — 172 — 651 — Curtailment loss — — — — — — Net (income)/expense $ (1,871 ) $ (2,504 ) $ (2,611 ) $ 211 $ 8,225 $ 245 Weighted-average actuarial assumptions (2) Benefit obligation assumptions: Discount rate 4.16 % 4.43 % 4.07 % 1.13 % 1.63 % 3.13 % Rate of compensation increase 0.00 % 0.00 % 0.00 % 2.00 % 2.00 % 0.48 % Pension income/expense assumptions: Discount rate 4.43 % 4.07 % 4.84 % 1.63 % 3.13 % 3.85 % Expected return on plan assets (1) 6.63 % 7.00 % 7.50 % 1.63 % 2.00 % 4.06 % Rate of compensation increase 0.00 % 0.00 % 0.00 % 2.00 % 0.48 % 0.57 % (1) Expected return on plan assets is net of expected investment expenses and certain administrative expenses. (2) During the fourth quarter of each year, we review our actuarial assumptions in light of current economic factors to determine if the assumptions need to be adjusted. Net post-retirement expense includes the following components: Post-Retirement Years Ended December 31, 2016 2015 2014 Service cost $ 3 $ 5 $ 4 Interest cost 207 204 230 Amortization of unrecognized gain (149 ) (101 ) (158 ) Net expense $ 61 $ 108 $ 76 Weighted-average actuarial assumptions (1) Benefit obligation assumptions: Discount rate 4.10 % 4.43 % 4.07 % Rate of compensation increase 0 % 0 % 0 % Pension income/post-retirement expense assumptions: Discount rate 4.43 % 4.07 % 4.84 % Rate of compensation increase 0 % 0 % 0 % (1) During the fourth quarter of each year, we review our actuarial assumptions in light of current economic factors to determine if the assumptions need to be adjusted. |
Asset Allocation and Target Allocation Plan | Our pension plan asset allocation at December 31, 2016 , and 2015 , and target allocation for 2017 by asset category are as follows: Target Allocations Percentage of Plan Assets Asset Category 2017 2016 2015 Equity securities (1) 28% 25% 39% Debt securities 60% 59% 41% Other 12% 16% 20% Total 100% 100% 100% (1) Equity securities include CTS common stock in the amounts of approximately $17,700 ( 6% of total plan assets) at December 31, 2016 , and approximately $25,000 ( 9% of total plan assets) at December 31, 2015 . |
Summary of Fair Values of Pension Plan | The following table summarizes the fair values of our pension plan assets: As of December 31, 2016 2015 Equity securities - U.S. holdings (1) $ 43,708 $ 56,696 Equity securities - non-U.S. holdings (1) 819 11,028 Equity funds - U.S. holdings (1) 28,052 17,522 Equity funds - non-U.S. holdings (1) — 26,903 Bond funds - government (6) 22,237 47,800 Bond funds - other (7) 150,712 69,617 Real estate (8) 3,812 10,006 Cash and cash equivalents (2) 7,823 7,417 Partnerships (5) 12,862 13,360 Long/short equity-focused hedge funds (4) — 5,255 International hedge funds (3) 23,542 25,191 Total fair value of plan assets $ 293,567 $ 290,795 |
Summary of Categories in Fair Value Hierarchy | The fair values at December 31, 2016 , are classified within the following categories in the fair value hierarchy: Quoted Prices Significant Significant Not Leveled Total Equity securities - U.S. holdings (1) $ 43,708 $ — $ — $ — $ 43,708 Equity securities - non-U.S. holdings (1) 819 — — — 819 Equity funds - U.S. holdings (1) — 28,052 — — 28,052 Equity funds - non-U.S. holdings (1) — — — — — Bond funds - government (6) — 22,237 — — 22,237 Bond funds - other (7) — 150,712 — — 150,712 Real estate (8) (9) — — — 3,812 3,812 Cash and cash equivalents (2) 7,823 — — — 7,823 Partnerships (5) — — 12,862 — 12,862 International hedge funds (3) (9) — — — 23,542 23,542 Total $ 52,350 $ 201,001 $ 12,862 $ 27,354 $ 293,567 The fair values at December 31, 2015 , are classified within the following categories in the fair value hierarchy: Quoted Prices Significant Significant Not Leveled Total Equity securities - U.S. holdings (1) $ 56,696 $ — $ — $ — $ 56,696 Equity securities - non-U.S. holdings (1) 11,028 — — — 11,028 Equity funds - U.S.holdings (1) — 17,522 — — 17,522 Equity funds - non-U.S. holdings (1) — 26,903 — — 26,903 Bond funds - government (6) — 47,800 — — 47,800 Bond funds - other (7) — 69,617 — — 69,617 Real Estate (8) (9) — — — 10,006 10,006 Cash and cash equivalents (2) 7,417 — — — 7,417 Partnerships (5) — — 13,360 — 13,360 Long/short equity-focused hedge funds (4) (9) — — — 5,255 5,255 International hedge funds (3) (9) — — — 25,191 25,191 Total $ 75,141 $ 161,842 $ 13,360 $ 40,452 $ 290,795 (1) Comprised of common stocks of companies in various industries. The Pension Plan fund manager may shift investments from value to growth strategies or vice-versa, from small cap to large cap stocks or vice-versa, in order to meet the Pension Plan's investment objectives, which are to provide for a reasonable amount of long-term growth of capital without undue exposure to volatility, and protect the assets from erosion of purchasing power. (2) Comprised of investment grade short-term investment and money-market funds. (3) This fund allocates its capital across several direct hedge-fund organizations. This fund invests with hedge funds that employ "non-directional" strategies. These strategies do not require the direction of the markets to generate returns. The majority of these hedge funds generate returns by the occurrence of key events such as bankruptcies, mergers, spin-offs, etc. Investments can be redeemed at the Share Net Asset Value ("NAV") as of the last business day of each calendar quarter with at least a sixty-five day prior written notice to the administrator. (4) The hedge fund manager utilizes fundamental research and invests in equities both long (seeking price appreciation) and short (expectation that the stock will fall) instruments. Investments can be redeemed at the Share NAV as of the last business day of each calendar quarter with at least a sixty-five day prior written notice to the administrator. (5) Comprised of partnerships that invest in various U.S. and international industries. (6) Comprised of zero-coupon U.S. Treasury securities (“Treasury STRIPS”) with maturities greater than 20 years. (7) Comprised predominately of investment grade U.S. corporate bonds with maturities greater than 10 years and U.S. high-yield corporate bonds; emerging market debt (local currency sovereign bonds, U.S. dollar-denominated sovereign bonds and U.S. dollar-denominated corporate bonds); and U.S. bank loans. (8) Comprised of investments in securities of U.S. and non-U.S. real estate investment trusts (REITs), real estate operating companies and other companies that are principally engaged in the real estate industry and of investments in global private direct commercial real estate. Investments can be redeemed immediately following the valuation date with a notice of at least fifteen business days before valuation. (9) Comprised of investments that are measured at fair value using the NAV per share practical expedient. In accordance with the provisions of ASC 820-10, these investments have not been classified in the fair value hierarchy. The fair value amount not leveled is presented to allow reconciliation of the fair value hierarchy to total fund pension plan assets. |
Estimated Future Benefit Payments | The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid: U.S. Non-U.S. Post-Retirement 2017 $ 16,411 $ 80 $ 387 2018 16,280 88 378 2019 16,390 92 369 2020 16,488 239 360 2021 16,504 91 350 2022-2025 80,563 711 1,596 Total $ 162,636 $ 1,301 $ 3,440 |
Summary of 401K and Other Plan Expense | Expenses related to defined contribution plans include the following: Years Ended December 31, 2016 2015 2014 401(k) and other plan expense $ 2,841 $ 3,352 $ 3,719 |
Partnership | |
Long-Duration Contracts, Assumptions by Product and Guarantee [Line Items] | |
Reconciliation of Level 3 Hedge Fund Asset Within Fair Value Hierarchy | The table below reconciles the Level 3 partnership assets within the fair value hierarchy: Amount Fair value of Level 3 partnership assets at January 1, 2015 $ 11,239 Capital contributions 2,808 Net ordinary gain attributable to partnership assets — Realized and unrealized gain 754 Capital distributions (1,441 ) Fair value of Level 3 partnership assets at December 31, 2015 13,360 Capital contributions 1,419 Net ordinary gain attributable to partnership assets — Realized and unrealized gain 584 Capital distributions (2,501 ) Fair value of Level 3 partnership assets at December 31, 2016 $ 12,862 |
Annuitization Benefit | |
Long-Duration Contracts, Assumptions by Product and Guarantee [Line Items] | |
Reconciliation of Level 3 Hedge Fund Asset Within Fair Value Hierarchy | The table below reconciles the Level 3 fixed annuity contracts within the fair value hierarchy: Amount Fair value of Level 3 fixed annuity contracts at January 1, 2015 $ 12,475 Purchases — Benefits paid (12,475 ) Net loss — Fair value of Level 3 fixed annuity contracts at December 31, 2015 — Purchases — Assets transferred due to termination of plan — Net loss — Fair value of Level 3 fixed annuity contracts at December 31, 2016 $ — |
Goodwill and Other Intangible35
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Intangible Assets | As of December 31, 2015 Gross Accumulated Net Other intangible assets: Customer lists / relationships $ 51,804 $ (27,101 ) $ 24,703 Patents 10,319 (10,319 ) — Technology and other intangibles 12,871 (5,016 ) 7,855 In process research and development 2,200 — 2,200 Other intangible assets, net $ 77,194 $ (42,436 ) $ 34,758 Amortization expense for the year ended December 31, 2015 $ 4,035 Amortization expense for the year ended December 31, 2014 $ 4,190 Other intangible assets consist of the following: As of December 31, 2016 Gross Accumulated Net Weighted Average Remaining Amortization Period (in years) Other intangible assets: Customer lists / relationships $ 63,386 $ (30,318 ) $ 33,068 11.6 Patents 10,319 (10,319 ) — — Technology and other intangibles 36,715 (7,613 ) 29,102 11.0 In process research and development 2,200 — 2,200 — Other intangible assets, net $ 112,620 $ (48,250 ) $ 64,370 11.4 Amortization expense for the year ended December 31, 2016 $ 5,815 |
Summary of Amortization Expense | Amortization expense remaining for other intangible assets is as follows: Amortization 2017 $ 6,064 2018 5,956 2019 5,947 2020 5,947 2021 5,868 Thereafter 34,588 Total future amortization expense $ 64,370 |
Summary of Reconciliation of Goodwill | Changes in the net carrying value amount of goodwill were as follows: Total Goodwill as of December 31, 2014 $ 32,047 Increase from acquisitions 1,818 Goodwill as of December 31, 2015 33,865 Increase from acquisition 27,879 Goodwill as of December 31, 2016 $ 61,744 |
Costs Associated with Exit an36
Costs Associated with Exit and Restructuring Activities (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Restructuring Reserve Activity | The following table displays the restructuring liability activity for the year ended December 31, 2016 : June 2013 Plan and April 2014 Plan and June 2016 Plan Restructuring Liability Restructuring liability at January 1, 2016 $ 826 Restructuring charges 3,048 Cost paid (1,729 ) Other activities (1) 17 Restructuring liability at December 31, 2016 $ 2,162 |
June 2013 Plan April 2014 Plan and June 2016 Plan | |
Restructuring and Restructuring Related Charges of Actual Costs | Restructuring and impairment charges are reported as a separate line within operating earnings in the Consolidated Statements of Earnings. Restructuring-related charges are recorded as a component of cost of goods sold. Total restructuring, impairment and restructuring-related charges were: Years Ended December 31, 2016 2015 2014 Restructuring-related charges $ — $ 631 $ 1,935 Restructuring and impairment charges 3,048 14,564 5,941 Total restructuring, impairment, and restructuring-related charges $ 3,048 $ 15,195 $ 7,876 |
June2016 Plan | |
Restructuring and Restructuring Related Charges of Actual Costs | Total restructuring and impairment charges for the June 2016 Plan were as follows: Years Ended December 31, 2016 2015 Restructuring and impairment charges $ 3,048 $ — The following table displays the planned restructuring and impairment charges associated with the June 2016 Plan as well as a summary of the actual costs incurred through December 31, 2016 : June 2016 Plan Planned Costs Actual costs Workforce reduction $ 3,075 $ 2,504 Equipment relocation 7,925 341 Asset impairment charge 3,700 — Other charges 1,300 203 Restructuring and impairment charges $ 16,000 $ 3,048 |
April 2014 Plan | |
Restructuring and Restructuring Related Charges of Actual Costs | The following table displays the planned restructuring and restructuring-related charges associated with the April 2014 Plan, as well as a summary of the actual costs incurred through December 31, 2016 : April 2014 Plan Planned Actual costs Inventory write-down $ 850 $ — Equipment relocation 1,800 444 Other charges 1,400 113 Restructuring-related charges, included in cost of goods sold $ 4,050 $ 557 Workforce reduction $ 4,200 $ 4,423 Other charges, including pension termination costs 1,700 3,413 Restructuring and impairment charges $ 5,900 $ 7,836 Total restructuring, impairment and restructuring-related charges $ 9,950 $ 8,393 |
June 2013 Plan | |
Restructuring and Restructuring Related Charges of Actual Costs | The following table displays the planned restructuring and restructuring-related charges associated with the June 2013 Plan, as well as a summary of the actual costs incurred through completion of the plan as of December 31, 2015: June 2013 Plan Planned Actual costs Inventory write-down $ 800 $ 1,143 Equipment relocation 900 1,792 Other charges 100 702 Restructuring-related charges, included in cost of goods sold $ 1,800 $ 3,637 Workforce reduction $ 10,150 $ 9,615 Asset impairment charge 3,000 4,139 Other charges, including pension termination costs 7,650 10,205 Restructuring and impairment charges $ 20,800 $ 23,959 Total restructuring and restructuring-related charges $ 22,600 $ 27,596 |
Accrued Liabilities and Other37
Accrued Liabilities and Other Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Payables and Accruals [Abstract] | |
Components of Accrued Liabilities | The components of accrued expenses and other liabilities are as follows: As of December 31, 2016 2015 Accrued product related costs $ 5,556 $ 5,245 Accrued income taxes 9,826 8,845 Accrued property and other taxes 1,917 1,838 Dividends payable 1,309 1,302 Remediation reserves 18,176 20,603 Other accrued liabilities 8,924 9,341 Total accrued expenses and other liabilities $ 45,708 $ 47,174 |
Contingencies (Tables)
Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of Remediation Reserve Activity | A roll forward of remediation reserves on the balance sheet is comprised of the following: Years Ended December 31, 2016 2015 2014 Balance at beginning of period $ 20,603 $ 3,918 $ 5,116 Remediation expense 556 18,591 1,521 Remediation payments (2,983 ) (1,906 ) (2,719 ) Balance at end of the period $ 18,176 $ 20,603 $ 3,918 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Leases [Abstract] | |
Schedule of future minimum non-cancelable operating lease payments | Minimum future obligations under all non-cancelable operating leases as of December 31, 2016 , are as follows: Operating Leases 2017 $ 4,635 2018 3,224 2019 1,829 2020 1,204 2021 583 Thereafter 2,526 Total minimum lease obligations $ 14,001 |
Summary of operating lease rent expense | Rent expense for operating leases charged to operations was as follows : Years Ended December 31, 2016 2015 2014 Rent expense $ 5,694 $ 3,550 $ 4,300 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Summary of Long-Term Debt | Long-term debt was comprised of the following: As of December 31 2016 2015 Revolving credit facility due in 2020 $ 89,100 $ 90,700 Weighted-average interest rate 1.9 % 1.5 % Amount available $ 208,735 $ 106,985 Total credit facility $ 300,000 $ 200,000 Standby letters of credit $ 2,165 $ 2,315 Commitment fee percentage per annum 0.25 % 0.25 % |
Summary of Interest Rate Swaps Activity Recorded in Other Comprehensive Income Before Tax | Interest rate swaps activity recorded in other comprehensive earnings before tax included the following: Years Ended December 31, 2016 2015 2014 Unrealized gain (loss) $ 593 $ (516 ) $ (510 ) Realized gain reclassified to interest expense $ 928 $ 768 $ 488 |
Summary of Interest Rate Swaps Included on Balance Sheets | Interest rate swaps included on the balance sheets are comprised of the following: As of December 31, 2016 2015 Other current assets $ 2 $ — Other assets $ 751 $ — Accrued expenses and other liabilities $ — $ 791 Other long-term obligations $ — $ (23 ) |
Derivatives Derivative Financ41
Derivatives Derivative Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block] | The location and fair values of derivative instruments designated as hedging instruments in the Consolidated Balance Sheets as of December 31, 2016 , are shown in the following table: As of December 31, 2016 2015 Foreign currency hedges reported in Accrued expenses and other liabilities $ 601 $ — Interest rate swaps reported in Accrued expenses and other liabilities $ — $ 791 Interest rate swaps reported in Other long-term obligations $ — $ (23 ) Interest rate swaps reported in Other current assets $ 2 $ — Interest rate swaps reported in Other assets $ 751 $ — |
Derivative Financial Instruments | Derivatives Our earnings and cash flows are subject to fluctuations due to changes in foreign currency exchange rates and interest rates. We selectively use derivative financial instruments including foreign currency forward contracts and interest rate swaps to manage our exposure to these risks. The use of derivative financial instruments exposes the Company to credit risk, which relates to the risk of nonperformance by a counterparty to the derivative contracts. We manage our credit risk by entering into derivative contracts with only highly rated financial institutions and by using netting agreements. Foreign Currency Hedges In January of 2016, we began using forward contracts to mitigate currency risk related to a portion of our forecasted foreign Euro denominated revenues and Mexican Peso denominated expenses. The currency forward contracts are designed as cash flow hedges and are recorded in the Consolidated Balance Sheets at fair value. At least quarterly, we assess the effectiveness of these hedging relationships based on the total change in their fair value using regression analysis. The effective portion of derivative gains and losses are recorded in Accumulated other comprehensive loss until the hedged transaction affects earnings upon settlement, at which time they are reclassified to net sales and cost of goods sold. Ineffectiveness is recorded in Other expense in our Consolidated Statements of Earnings. If it becomes probable that an anticipated transaction that is hedged will not occur by the end of the originally specified time period, we reclassify the gains or losses related to that hedge from Accumulated other comprehensive loss to other expense. As of December 31, 2016 , we were hedging a portion of our forecasted Peso expenses for the following twelve months and did not have any Euro cash flow hedges in place. We continue to monitor the Company’s overall currency exposure and may elect to add cash flow hedges in the future. At December 31, 2016 , we had a net unrealized loss of $ 637 in Accumulated other comprehensive loss, of which $ 637 is expected to be reclassified to income within the next 12 months. The notional amount of foreign currency forward contracts outstanding was $ 11.6 million at December 31, 2016 . Interest Rate Swaps We use interest rate swaps to convert the revolving credit facility’s variable rate of interest into a fixed rate on a portion of the debt balance. In the second quarter of 2012, we entered into four separate interest rate swap agreements to fix interest rates on $50,000 of long-term debt for the periods January 2013 to January 2017. In the third quarter of 2012, we entered into four additional interest rate swap agreements to fix interest rates on $25,000 of long-term debt for the periods January 2013 to January 2017. In the third quarter of 2016, we entered into three additional forward-starting interest rate swap agreements to fix interest rates on $50,000 of long-term debt for the periods August 2017 to August 2020. The difference to be paid or received under the terms of the swap agreements will be recognized as an adjustment to interest expense when settled. These swaps are treated as cash flow hedges and consequently, the changes in fair value were recorded in other comprehensive income (loss). The estimated net amount of the existing gains or losses that are reported in accumulated other comprehensive income (loss) that is expected to be reclassified into earnings within the next twelve months is approximately $ 2 . The location and fair values of derivative instruments designated as hedging instruments in the Consolidated Balance Sheets as of December 31, 2016 , are shown in the following table: As of December 31, 2016 2015 Foreign currency hedges reported in Accrued expenses and other liabilities $ 601 $ — Interest rate swaps reported in Accrued expenses and other liabilities $ — $ 791 Interest rate swaps reported in Other long-term obligations $ — $ (23 ) Interest rate swaps reported in Other current assets $ 2 $ — Interest rate swaps reported in Other assets $ 751 $ — The Company has elected to net its foreign currency derivative assets and liabilities in the balance sheet in accordance with ASC 210-20 (Balance Sheet, Offsetting). On a gross basis, there were no foreign currency derivative assets and foreign currency derivative liabilities were $ 601 . The effect of derivative instruments on the Consolidated Statements of Earnings is as follows: Years Ended December 31, 2016 2015 Foreign Exchange Contracts: Amounts reclassified from AOCI to earnings Net sales $ (124 ) $ — Cost of goods sold 111 — Selling, general and administrative 1 — Total amounts reclassified from AOCI to earnings (12 ) — Loss recognized in other expense for hedge ineffectiveness (1 ) — Loss recognized in other expense for derivatives not designated as cash flow hedges (5 ) — Total derivative loss on foreign exchange contracts recognized in earnings (18 ) — Interest Rate Swaps: Interest Expense $ (928 ) $ (768 ) Total loss on derivatives recognized in earnings $ (946 ) $ (768 ) The table below provides a reconciliation of the recurring financial assets and liabilities related to interest rate swaps and foreign currency hedges: Interest Rate Foreign Currency Hedges Balance at January 1, 2015 $ (1,020 ) $ — Total gains (losses) for the period: Included in earnings 768 — Included in other comprehensive earnings (516 ) — Balance at January 1, 2016 $ (768 ) $ — Settled in cash — 54 Total gains (losses) for the period: Included in earnings 928 (18 ) Included in other comprehensive earnings 593 (637 ) Balance at December 31, 2016 $ 753 $ (601 ) |
Accumulated Other Comprehensi42
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Changes in Accumulated Other Comprehensive Earnings/(Loss) | The components of AOCI for 2016 are as follows: As of December 31, 2015 Gain (Loss) Gain (Loss) As of December 31, 2016 Changes in fair market value of hedges: Gross $ (768 ) $ (56 ) $ 940 $ 116 Income tax expense (benefit) 289 20 (351 ) (42 ) Net (479 ) (36 ) 589 74 Changes in unrealized pension cost: Gross (161,719 ) — 10,101 (151,618 ) Income tax expense (benefit) 64,361 — (3,689 ) 60,672 Net (97,358 ) — 6,412 (90,946 ) Cumulative translation adjustment: Gross (1,279 ) (1,135 ) — (2,414 ) Income tax expense (benefit) 111 (19 ) — 92 Net (1,168 ) (1,154 ) — (2,322 ) Total accumulated other comprehensive (loss) income $ (99,005 ) $ (1,190 ) $ 7,001 $ (93,194 ) The components of AOCI for 2015 are as follows: As of December 31, 2014 (Loss) Gain Gain (Loss) As of December 31, 2015 Changes in fair market value of hedges: Gross $ (1,020 ) $ (516 ) $ 768 $ (768 ) Income tax expense (benefit) 384 194 (289 ) 289 Net (636 ) (322 ) 479 (479 ) Changes in unrealized pension cost: Gross (169,291 ) — 7,572 (161,719 ) Income tax expense (benefit) 65,124 — (763 ) 64,361 Net (104,167 ) — 6,809 (97,358 ) Cumulative translation adjustment: Gross 245 (1,524 ) — (1,279 ) Income tax expense (benefit) 325 (214 ) — 111 Net 570 (1,738 ) — (1,168 ) Total accumulated other comprehensive (loss) income $ (104,233 ) $ (2,060 ) $ 7,288 $ (99,005 ) |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Stockholders' Equity Note [Abstract] | |
Summary of Share Count and Par Value Data Related to Shareholders' Equity | Share count and par value data related to shareholders' equity are as follows: As of December 31, 2016 2015 Preferred Stock Par value per share No par value No par value Shares authorized 25,000,000 25,000,000 Shares outstanding — — Common Stock Par value per share No par value No par value Shares authorized 75,000,000 75,000,000 Shares issued 56,456,516 56,242,499 Shares outstanding 32,762,494 32,548,477 Treasury stock Shares held 23,694,022 23,694,022 |
Summary of Common Shares Outstanding | A roll forward of common shares outstanding is as follows: As of December 31, 2016 2015 Balance at beginning of the year 32,548,477 33,392,060 Repurchases — (984,382 ) Stock option issuances — 5,200 Restricted stock unit issuances 214,017 135,599 Balance at end of period 32,762,494 32,548,477 |
Equity-Based compensation (Tabl
Equity-Based compensation (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of Equity-Based Compensation Expense | The following table summarizes the compensation expense included in selling, general and administrative expenses in the Consolidated Statements of Earnings related to stock-based compensation plans: Years Ended December 31, 2016 2015 2014 Service-Based RSUs $ 1,997 $ 1,944 $ 1,771 Performance-Based RSUs 665 1,235 872 Cash-settled awards $ 76 $ 16 $ 17 Total $ 2,738 $ 3,195 $ 2,660 Income tax benefit $ 1,029 $ 1,201 $ 1,000 |
Schedule of Unrecognized Equity-Based Compensation Expense | The following table summarizes the unrecognized compensation expense related to non-vested RSUs by type and the weighted-average period in which the expense is to be recognized: Unrecognized Weighted- Service-Based RSUs $ 1,625 1.12 years Performance-Based RSUs 1,231 1.73 years Total $ 2,856 1.38 years |
Summary of Status of Equity-Based Compensation Plans | The following table summarizes the status of these plans as of December 31, 2016 : 2014 Plan 2009 Plan 2004 Plan Directors' Plan Awards originally available to be granted 1,500,000 3,400,000 6,500,000 N/A Performance stock options outstanding 320,000 — — — Maximum potential RSU and cash settled awards outstanding 609,511 212,849 78,947 25,985 Maximum potential awards outstanding 929,511 212,849 78,947 25,985 RSUs and cash settled awards vested and released 54,544 — — — Awards available to be granted 515,945 — — — |
Summary of Service-Based Restricted Stock Units | A summary of RSUs for all Plans is presented below: Units Weighted Weighted Aggregate Outstanding at January 1, 2016 505,170 $ 13.13 Granted 195,266 15.07 Released (102,967 ) 14.27 Forfeited (42,991 ) 16.75 Outstanding at December 31, 2016 554,478 $ 13.37 21.8 $ 12,420 Releasable at December 31, 2016 303,233 $ 11.34 33.7 $ 6,792 |
Schedule of Weighted Average Grant Date Fair Value and Intrinsic Value of RSU's | Years Ended December 31, 2016 2015 2014 Weighted-average grant date fair value $ 15.07 $ 17.31 $ 9.00 Intrinsic value of RSUs released $ 1,520 $ 2,933 $ 5,670 |
Summary of Changes of Nonvested RSU's | A summary of nonvested RSUs is presented below: RSUs Weighted Nonvested at January 1, 2016 218,849 $ 16.29 Granted 195,266 15.07 Vested (126,944 ) 15.19 Forfeited (35,926 ) 16.75 Nonvested at December 31, 2016 251,245 15.81 |
Summary of Fair Value of Restricted Stock Units Vested | Years Ended December 31, 2016 2015 2014 Fair value of RSUs vested $ 1,928 $ 1,908 $ 2,055 |
Schedule of Components of Performance-Based RSU's | A summary of PSUs for all Plans is presented below: Units Weighted Weighted Aggregate Outstanding at January 1, 2016 249,560 $ 15.14 Granted 108,650 13.56 Released (234,517 ) 11.82 Forfeited (18,810 ) 15.86 Added by performance factor 97,017 $ 11.81 Outstanding at December 31, 2016 201,900 $ 16.48 44.2 $ 4,523 Releasable at December 31, 2016 — $ — — $ — The following table summarizes each grant of performance awards outstanding at December 31, 2016 : Description Grant Date Vesting Vesting Target Outstanding Maximum Number of Units to be Granted 2014-2016 Performance RSUs February 14, 2014 2017 35% RTSR, 35% sales growth, 30% cash flow 43,060 86,120 2015-2017 Performance RSUs February 5, 2015 2018 35% RTSR, 35% sales growth, 30% cash flow 62,000 124,000 2016-2018 Performance RSUs February 16, 2016 2019 35% RTSR, 35% sales growth, 30% cash flow 92,840 185,680 Single Crystal Performance RSUs March 31, 2016 2019 various 4,000 8,000 201,900 403,800 |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Summary of Financial Liability Measured at Fair Value on a Recurring Basis | The table below summarizes the financial assets and liabilities that were measured at fair value on a recurring basis as of December 31, 2016 and the loss recorded during the year ended December 31, 2016 : Asset (Liability) Carrying Quoted Prices Significant Significant (Gain) loss for Year Ended Interest rate swap — cash flow hedge $ 753 $ — $ 753 $ — $ (928 ) Foreign currency hedges $ (601 ) $ — $ (601 ) $ — $ 18 The table below summarizes the financial liability that was measured at fair value on a recurring basis as of December 31, 2015 and the loss recorded during the year ended December 31, 2015 : Asset (Liability) Carrying Quoted Prices Significant Significant Loss for Interest rate swap — cash flow hedge $ (768 ) $ — $ (768 ) $ — $ 768 |
Reconciliation of Recurring Financial Liability Related to Interest Rate Swaps | Derivatives Our earnings and cash flows are subject to fluctuations due to changes in foreign currency exchange rates and interest rates. We selectively use derivative financial instruments including foreign currency forward contracts and interest rate swaps to manage our exposure to these risks. The use of derivative financial instruments exposes the Company to credit risk, which relates to the risk of nonperformance by a counterparty to the derivative contracts. We manage our credit risk by entering into derivative contracts with only highly rated financial institutions and by using netting agreements. Foreign Currency Hedges In January of 2016, we began using forward contracts to mitigate currency risk related to a portion of our forecasted foreign Euro denominated revenues and Mexican Peso denominated expenses. The currency forward contracts are designed as cash flow hedges and are recorded in the Consolidated Balance Sheets at fair value. At least quarterly, we assess the effectiveness of these hedging relationships based on the total change in their fair value using regression analysis. The effective portion of derivative gains and losses are recorded in Accumulated other comprehensive loss until the hedged transaction affects earnings upon settlement, at which time they are reclassified to net sales and cost of goods sold. Ineffectiveness is recorded in Other expense in our Consolidated Statements of Earnings. If it becomes probable that an anticipated transaction that is hedged will not occur by the end of the originally specified time period, we reclassify the gains or losses related to that hedge from Accumulated other comprehensive loss to other expense. As of December 31, 2016 , we were hedging a portion of our forecasted Peso expenses for the following twelve months and did not have any Euro cash flow hedges in place. We continue to monitor the Company’s overall currency exposure and may elect to add cash flow hedges in the future. At December 31, 2016 , we had a net unrealized loss of $ 637 in Accumulated other comprehensive loss, of which $ 637 is expected to be reclassified to income within the next 12 months. The notional amount of foreign currency forward contracts outstanding was $ 11.6 million at December 31, 2016 . Interest Rate Swaps We use interest rate swaps to convert the revolving credit facility’s variable rate of interest into a fixed rate on a portion of the debt balance. In the second quarter of 2012, we entered into four separate interest rate swap agreements to fix interest rates on $50,000 of long-term debt for the periods January 2013 to January 2017. In the third quarter of 2012, we entered into four additional interest rate swap agreements to fix interest rates on $25,000 of long-term debt for the periods January 2013 to January 2017. In the third quarter of 2016, we entered into three additional forward-starting interest rate swap agreements to fix interest rates on $50,000 of long-term debt for the periods August 2017 to August 2020. The difference to be paid or received under the terms of the swap agreements will be recognized as an adjustment to interest expense when settled. These swaps are treated as cash flow hedges and consequently, the changes in fair value were recorded in other comprehensive income (loss). The estimated net amount of the existing gains or losses that are reported in accumulated other comprehensive income (loss) that is expected to be reclassified into earnings within the next twelve months is approximately $ 2 . The location and fair values of derivative instruments designated as hedging instruments in the Consolidated Balance Sheets as of December 31, 2016 , are shown in the following table: As of December 31, 2016 2015 Foreign currency hedges reported in Accrued expenses and other liabilities $ 601 $ — Interest rate swaps reported in Accrued expenses and other liabilities $ — $ 791 Interest rate swaps reported in Other long-term obligations $ — $ (23 ) Interest rate swaps reported in Other current assets $ 2 $ — Interest rate swaps reported in Other assets $ 751 $ — The Company has elected to net its foreign currency derivative assets and liabilities in the balance sheet in accordance with ASC 210-20 (Balance Sheet, Offsetting). On a gross basis, there were no foreign currency derivative assets and foreign currency derivative liabilities were $ 601 . The effect of derivative instruments on the Consolidated Statements of Earnings is as follows: Years Ended December 31, 2016 2015 Foreign Exchange Contracts: Amounts reclassified from AOCI to earnings Net sales $ (124 ) $ — Cost of goods sold 111 — Selling, general and administrative 1 — Total amounts reclassified from AOCI to earnings (12 ) — Loss recognized in other expense for hedge ineffectiveness (1 ) — Loss recognized in other expense for derivatives not designated as cash flow hedges (5 ) — Total derivative loss on foreign exchange contracts recognized in earnings (18 ) — Interest Rate Swaps: Interest Expense $ (928 ) $ (768 ) Total loss on derivatives recognized in earnings $ (946 ) $ (768 ) The table below provides a reconciliation of the recurring financial assets and liabilities related to interest rate swaps and foreign currency hedges: Interest Rate Foreign Currency Hedges Balance at January 1, 2015 $ (1,020 ) $ — Total gains (losses) for the period: Included in earnings 768 — Included in other comprehensive earnings (516 ) — Balance at January 1, 2016 $ (768 ) $ — Settled in cash — 54 Total gains (losses) for the period: Included in earnings 928 (18 ) Included in other comprehensive earnings 593 (637 ) Balance at December 31, 2016 $ 753 $ (601 ) |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Earnings Before Income Taxes | Earnings before income taxes consist of the following: Years Ended December 31, 2016 2015 2014 U.S. $ 25,746 $ (141 ) $ 19,205 Non-U.S. 31,499 12,402 20,143 Total $ 57,245 $ 12,261 $ 39,348 |
Significant Components of Income Tax Provision/(Benefit) | Significant components of income tax provision/(benefit) are as follows: Years Ended December 31, 2016 2015 2014 Current: U.S. $ (1,312 ) $ 329 $ 945 Non-U.S. 13,729 12,482 6,981 Total Current 12,417 12,811 7,926 Deferred: U.S. 13,245 (15,795 ) 3,590 Non-U.S. (2,797 ) 8,291 1,310 Total Deferred 10,448 (7,504 ) 4,900 Total provision for income taxes $ 22,865 $ 5,307 $ 12,826 |
Significant Components of Deferred Tax Assets and Liabilities | Significant components of our deferred tax assets and liabilities are as follows: As of December 31, 2016 2015 Post-retirement benefits $ 1,798 $ 1,837 Inventory reserves 1,834 1,797 Loss carry-forwards 7,279 9,387 Credit carry-forwards 22,743 35,082 Nondeductible accruals 11,629 12,406 Research expenditures 31,380 30,465 Stock compensation 2,681 2,070 Foreign exchange loss 1,780 2,522 Other 648 1,231 Gross deferred tax assets 81,772 96,797 Depreciation and amortization 9,960 9,814 Pensions 16,024 11,868 Subsidiaries' unremitted earnings 1,292 7,461 Gross deferred tax liabilities 27,276 29,143 Net deferred tax assets 54,496 67,654 Deferred tax asset valuation allowance (11,024 ) (10,266 ) Total net deferred tax assets $ 43,472 $ 57,388 |
Schedule of current and long-term deferred tax assets and current and long-term deferred tax liabilities | The long-term deferred tax assets and long-term deferred tax liabilities are as follows below: As of December 31, 2016 2015 Non-current deferred tax assets 45,839 63,809 Non-current deferred tax liabilities (2,367 ) (6,421 ) Total net deferred tax assets 43,472 57,388 |
Reconciliation of Effective Income Taxes Rate | The following table reconciles taxes at the U.S. federal statutory rate to the effective income tax rate: Years Ended December 31, 2016 2015 2014 Taxes at the U.S. statutory rate 35.0 % 35.0 % 35.0 % State income taxes, net of federal income tax benefit 1.4 % (0.1 )% 0.7 % Non-U.S. income taxed at rates different than the U.S. statutory rate (7.5 )% (16.7 )% (7.6 )% Foreign source income, net of associated foreign tax credits 5.3 % 6.9 % 3.5 % Benefit of tax credits (1.0 )% (4.6 )% (1.3 )% Non-deductible expenses 0.7 % 1.3 % 2.8 % Adjustment to valuation allowances 3.8 % 37.8 % (0.4 )% Benefit from prior period foreign tax credits — % (133.0 )% — % Change in unrecognized tax benefits 3.3 % 59.5 % — % Impacts of unremitted foreign earnings 0.6 % 60.8 % — % Other (1.7 )% (3.6 )% (0.1 )% Effective income tax rate 39.9 % 43.3 % 32.6 % |
Reconciliation of Unrecognized Tax Benefits | A reconciliation of the beginning and ending unrecognized tax benefits is provided below: 2016 2015 Balance at January 1 $ 11,008 $ 3,890 Increase related to current year tax positions 1,088 1,406 Increase related to prior year tax positions 251 5,728 Decrease as a result of lapse of statute of limitations — (16 ) Balance at December 31 $ 12,347 $ 11,008 |
Business Acquisitions (Tables)
Business Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Business Combinations [Abstract] | |
Schedule of Business Acquisitions | The following table summarizes the fair values of the assets acquired and the liabilities assumed at the date of acquisition: Fair Values at October 28, 2015 Current assets $ 555 Property, plant and equipment 29 Goodwill 1,818 In-process research and development intangible asset 2,200 Other assets 8 Fair value of assets acquired 4,610 Less fair value of liabilities acquired (1,205 ) Less fair value of contingent consideration (1,550 ) Net cash paid $ 1,855 Results of operations for CTG-AM are included in our consolidated financial statements beginning on March 11, 2016. The amount of net sales and net loss from CTG-AM since the acquisition date that have been included in the Consolidated Statements of Earnings are as follows: For the period March 11, 2016 through December 31, 2016 Net sales $ 12,299 Net earnings $ 1,357 |
Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination [Table Text Block] | The following table summarizes the carrying amounts and weighted average lives of the acquired intangible assets: Carrying Value Weighted Average Amortization Period (in years) Developed technology 23,730 15.0 Customer relationships and contracts 11,502 14.6 Other 195 0.8 Total 35,427 14.8 |
Business Acquisition, Pro Forma Information [Table Text Block] | The unaudited pro forma amounts below include CTG-AM's revenues and earnings that would have been included in our Consolidated Statement of Earnings had the acquisition date been January 1, 2015. December 31, 2016 (Unaudited Proforma) December 31, 2015 (Unaudited Proforma) Net sales $ 398,990 $ 395,495 Net earnings $ 34,321 $ 8,800 Earnings per share: Basic $ 1.05 $ 0.27 Diluted $ 1.03 $ 0.26 |
Business Acquisitions Schedule
Business Acquisitions Schedule of Finite-Lived Intangible Assets (Tables) - CTG Advanced Materials, LLC [Member] $ in Thousands | Mar. 11, 2016USD ($) |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Fair Value | $ 35,427 |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 14 years 9 months 20 days |
Developed Technology | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Fair Value | $ 23,730 |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 15 years |
Customer Relationships and Contracts | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Fair Value | $ 11,502 |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 14 years 7 months 6 days |
Other Intangible Assets | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Fair Value | $ 195 |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 9 months 18 days |
Geographic Data (Tables)
Geographic Data (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Schedule of Revenue and Long-Lived Assets by Geographic Areas | Financial information relating to our operations by geographic area were as follows: Net Sales Years Ended December 31, 2016 2015 2014 United States $ 276,033 $ 238,796 $ 234,323 Singapore 6,668 8,379 11,510 China 59,506 55,825 61,683 Canada — 24,519 35,145 Czech Republic 34,767 36,348 44,424 Other non-U.S. 19,705 18,443 16,936 Consolidated net sales $ 396,679 $ 382,310 $ 404,021 Sales are attributed to countries based upon the origin of the sale. Long-Lived Assets Years Ended December 31, 2016 2015 United States $ 42,488 $ 32,239 China 33,013 30,937 United Kingdom 569 1,042 Taiwan 2,755 2,694 Czech Republic 2,634 2,029 Other non-U.S 652 931 Consolidated long-lived assets $ 82,111 $ 69,872 |
Quarterly Financial Data (Table
Quarterly Financial Data (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Results of Operations | Quarterly Results of Operations (Unaudited) First Second Third Fourth 2016 Net sales $ 96,705 $ 98,693 $ 99,697 $ 101,584 Gross margin $ 33,468 $ 34,457 $ 36,641 $ 35,861 Operating earnings $ 12,433 $ 24,097 $ 12,490 $ 14,146 Net earnings $ 7,863 $ 14,487 $ 3,720 $ 8,310 Basic earnings per share $ 0.24 $ 0.44 $ 0.11 $ 0.25 Diluted earnings per share $ 0.24 $ 0.44 $ 0.11 $ 0.25 2015 Net sales $ 98,311 $ 100,071 $ 90,646 $ 93,282 Gross margin $ 32,136 $ 33,373 $ 31,446 $ 30,154 Operating earnings $ 10,488 $ 10,544 $ (3,850 ) $ 931 Net earnings $ 6,287 $ 19,080 $ (4,760 ) $ (13,653 ) Basic earnings per share $ 0.19 $ 0.58 $ (0.15 ) $ (0.42 ) Diluted earnings per share $ 0.19 $ 0.57 $ (0.15 ) $ (0.42 ) |
Summary of Significant Accoun51
Summary of Significant Accounting Policies - Additional Information (Details 2) | 12 Months Ended |
Dec. 31, 2016segment | |
Description of Business | |
Number or reportable segments | 1 |
Cash and Cash Equivalents | |
Maturity period of highly liquid investments | 3 months |
Summary of Significant Accoun52
Summary of Significant Accounting Policies - Concentration of Credit Risk (Details 3) - Sales Revenue, Goods, Net - Customer Concentration Risk | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Honda Motor Co. | |||
Summary of Significant Accounting Policies | |||
Concentration of risk, percentage | 10.70% | 10.70% | 10.80% |
Toyota Motor Corporation | |||
Summary of Significant Accounting Policies | |||
Concentration of risk, percentage | 10.40% | 10.10% | 8.40% |
Summary of Significant Accoun53
Summary of Significant Accounting Policies - Property, Plant and Equipment (Details 4) | 12 Months Ended |
Dec. 31, 2016 | |
Building and Building Improvements | Minimum | |
Property, Plant and Equipment | |
Property, Plant and Equipment, useful lives | 10 years |
Building and Building Improvements | Maximum | |
Property, Plant and Equipment | |
Property, Plant and Equipment, useful lives | 45 years |
Machinery and Equipment | Minimum | |
Property, Plant and Equipment | |
Property, Plant and Equipment, useful lives | 3 years |
Machinery and Equipment | Maximum | |
Property, Plant and Equipment | |
Property, Plant and Equipment, useful lives | 8 years |
Summary of Significant Accoun54
Summary of Significant Accounting Policies - Goodwill and Other Intangible Assets (Details 5) | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Other Intangible Assets | |
Finite-Lived Intangible Assets, Remaining Amortization Period | 11 years 4 months 24 days |
Customer-Related Intangible Assets | |
Goodwill and Other Intangible Assets | |
Finite-Lived Intangible Assets, Remaining Amortization Period | 11 years 7 months 6 days |
Technology and other intangibles | |
Goodwill and Other Intangible Assets | |
Finite-Lived Intangible Assets, Remaining Amortization Period | 11 years |
Summary of Significant Accoun55
Summary of Significant Accounting Policies - Research and Development (Details 6) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Research and Development | |||
Reimbursements received from customers | $ 2,036 | $ 1,861 | $ 1,400 |
Other Current Assets | |||
Research and Development | |||
Cost of molds, dies and other tools included in Other current assets | $ 2,837 | $ 3,969 |
Summary of Significant Accoun56
Summary of Significant Accounting Policies - Earnings Per Share (Details 7) - shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Anti-dilutive Securities | |||
Antidilutive stock options and RSUs | 35,189 | 13,979 | 0 |
Summary of Significant Accoun57
Summary of Significant Accounting Policies - Foreign Currencies (Details 8) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Other Nonoperating Income (Expense) [Member] | |||
Foreign Currencies | |||
Foreign currency (loss) gain | $ (3,714) | $ (6,299) | $ (4,130) |
Summary of Significant Accoun58
Summary of Significant Accounting Policies - Goodwill and Indefinite-lived Intangibles Impairment (Details 9) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Impairment of Long-Lived Assets and Long-lived Assets to be Disposed of | |||
Goodwill, loss | $ 0 | $ 0 | $ 0 |
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | $ 0 | $ 0 | $ 0 |
Summary of Significant Accoun59
Summary of Significant Accounting Policies Summary of Significant Accounting Policies - Reclassification (Details 10) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Other current assets | $ 10,638 | $ 9,863 |
Deferred income taxes | 45,839 | 63,809 |
Accrued Liabilities, Current | $ (45,708) | (47,174) |
Pension and Other Postretirement and Postemployment Benefit Plans, Liabilities, Noncurrent | (7,230) | |
Liabilities, Other than Long-term Debt, Noncurrent | (9,169) | |
Scenario, Previously Reported [Member] | ||
Other current assets | 15,888 | |
Deferred income taxes | 58,544 | |
Accrued Liabilities, Current | (53,905) | |
Pension and Other Postretirement and Postemployment Benefit Plans, Liabilities, Noncurrent | (2,703) | |
Liabilities, Other than Long-term Debt, Noncurrent | (7,725) | |
Restatement Adjustment [Member] | ||
Other current assets | (6,025) | |
Deferred income taxes | 5,265 | |
Accrued Liabilities, Current | (6,731) | |
Pension and Other Postretirement and Postemployment Benefit Plans, Liabilities, Noncurrent | 4,527 | |
Liabilities, Other than Long-term Debt, Noncurrent | $ 1,444 |
Accounts Receivable - Component
Accounts Receivable - Components of Accounts Receivable (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Accounts Receivable | ||
Accounts receivable, gross | $ 62,782 | $ 54,696 |
Less: Allowance for doubtful accounts | (170) | (133) |
Accounts receivable, net | $ 62,612 | $ 54,563 |
Inventories - Summary of Invent
Inventories - Summary of Inventories (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Inventories | ||
Finished goods | $ 7,513 | $ 6,972 |
Work-in-process | 9,596 | 6,828 |
Raw materials | 17,680 | 16,991 |
Less: Inventory reserves | (6,137) | (6,191) |
Inventories, net | $ 28,652 | $ 24,600 |
Property, Plant and Equipment -
Property, Plant and Equipment - Summary of Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Property, Plant and Equipment | ||
Less: Accumulated depreciation | $ (197,038) | $ (189,472) |
Property, plant and equipment, net | 82,111 | 69,872 |
Land | ||
Property, Plant and Equipment | ||
Property, plant and equipment gross | 2,330 | 2,401 |
Buildings and improvements | ||
Property, Plant and Equipment | ||
Property, plant and equipment gross | 63,621 | 65,731 |
Machinery and equipment | ||
Property, Plant and Equipment | ||
Property, plant and equipment gross | $ 213,198 | $ 191,212 |
Property, Plant and Equipment63
Property, Plant and Equipment - Depreciation Expense (Details 2) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Continuing Operations | |||
Property, Plant and Equipment | |||
Depreciation expense | $ 13,177 | $ 12,219 | $ 12,781 |
Retirement Plans - Additional I
Retirement Plans - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Retirement Plans | |||
Noncontributory benefit pension plans covering active employees | 6.00% | ||
Loss on termination of pension plan | $ 8,280 | ||
Amortization period | 20 years | ||
Amortization of retirement benefits, net of tax | $ 5,931 | ||
U.S.Pension Plans | |||
Retirement Plans | |||
Curtailment loss | 0 | 0 | $ 0 |
Expected contribution to be made by CTS | 317 | ||
Non-U.S. Pension Plans | |||
Retirement Plans | |||
Curtailment loss | 0 | $ 0 | $ 0 |
Expected contribution to be made by CTS | $ 307 | ||
Post-Retirement Life Insurance Plan | |||
Retirement Plans | |||
Amortization period | 4 years |
Retirement Plans - Reconciliati
Retirement Plans - Reconciliation of Benefit Obligation, Plan Assets, and Funded Status (Details 2) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Change in projected benefit obligation: | |||
Benefits paid | $ (165) | $ (172) | |
Change in plan assets: | |||
Beginning Balance | 290,795 | ||
Benefits paid | (165) | (172) | |
Ending Balance | 293,567 | 290,795 | |
U.S.Pension Plans | |||
Retirement Plans | |||
Accumulated benefit obligation | 247,276 | 256,924 | |
Change in projected benefit obligation: | |||
Beginning Balance | 256,924 | 284,365 | |
Service cost | 87 | 171 | $ 192 |
Interest cost | 11,024 | 11,258 | 12,214 |
Benefits paid | (20,537) | (21,526) | |
Actuarial (gain) loss | (222) | (17,344) | |
Plan settlement | 0 | 0 | |
Foreign exchange impact | 0 | 0 | |
Ending Balance | 247,276 | 256,924 | 284,365 |
Change in plan assets: | |||
Beginning Balance | 289,315 | 314,453 | |
Actual return on assets | 23,163 | (3,723) | |
Company contributions | 103 | 111 | |
Benefits paid | (20,537) | (21,526) | |
Plan settlement | 0 | 0 | |
Foreign exchange impact | 0 | 0 | |
Ending Balance | 292,044 | 289,315 | 314,453 |
Funded status (plan assets less projected benefit obligations) | 44,768 | 32,391 | |
Non-U.S. Pension Plans | |||
Retirement Plans | |||
Accumulated benefit obligation | 2,295 | 2,247 | |
Change in projected benefit obligation: | |||
Beginning Balance | 2,796 | 16,168 | |
Service cost | 51 | 63 | 83 |
Interest cost | 46 | 465 | 608 |
Benefits paid | (289) | (691) | |
Actuarial (gain) loss | 229 | (131) | |
Plan settlement | 0 | 12,786 | |
Foreign exchange impact | 33 | (292) | |
Ending Balance | 2,866 | 2,796 | 16,168 |
Change in plan assets: | |||
Beginning Balance | 1,480 | 15,128 | |
Actual return on assets | 11 | (538) | |
Company contributions | 303 | 1,275 | |
Benefits paid | (289) | (691) | |
Plan settlement | 0 | (13,437) | |
Foreign exchange impact | 18 | (257) | |
Ending Balance | 1,523 | 1,480 | 15,128 |
Funded status (plan assets less projected benefit obligations) | (1,343) | (1,316) | |
Post-Retirement Life Insurance Plan | |||
Retirement Plans | |||
Accumulated benefit obligation | 4,952 | 4,885 | |
Change in projected benefit obligation: | |||
Beginning Balance | 4,886 | 5,194 | |
Service cost | 3 | 5 | 4 |
Interest cost | 207 | 204 | 230 |
Benefits paid | 165 | 172 | |
Actuarial (gain) loss | 21 | (345) | |
Ending Balance | 4,952 | 4,886 | 5,194 |
Change in plan assets: | |||
Beginning Balance | 0 | 0 | |
Actual return on assets | 0 | 0 | |
Company contributions | 165 | 172 | |
Benefits paid | 165 | 172 | |
Foreign exchange impact | 0 | 0 | |
Ending Balance | 0 | 0 | $ 0 |
Funded status (plan assets less projected benefit obligations) | $ (4,952) | $ (4,886) |
Retirement Plans - Components o
Retirement Plans - Components of Prepaid (Accrued) Cost (Details 3) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
U.S.Pension Plans | ||
Retirement Plans | ||
Prepaid pension asset | $ 46,183 | $ 33,779 |
Accrued expenses and other liabilities | (317) | 0 |
Long-term pension obligations | (1,098) | (1,388) |
Components of prepaid (accrued) cost, net | 44,768 | 32,391 |
Non-U.S. Pension Plans | ||
Retirement Plans | ||
Prepaid pension asset | 0 | 0 |
Accrued expenses and other liabilities | 0 | 0 |
Long-term pension obligations | (1,343) | (1,316) |
Components of prepaid (accrued) cost, net | (1,343) | (1,316) |
Post-Retirement Life Insurance Plan | ||
Retirement Plans | ||
Accrued expenses and other liabilities | (387) | (360) |
Long-term pension obligations | (4,565) | (4,526) |
Components of prepaid (accrued) cost, net | $ (4,952) | $ (4,886) |
Retirement Plans - Accumulated
Retirement Plans - Accumulated Other Comprehensive loss (Details 4) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
U.S.Pension Plans | ||
Accumulated Other Comprehensive Loss | ||
Beginning balance | $ 96,388 | $ 96,194 |
Amortization of retirement benefits, net of tax | (3,817) | (3,956) |
Settlements and curtailments | 0 | 0 |
Net actuarial gain | (2,808) | 4,150 |
Foreign exchange impact | 0 | 0 |
Ending balance | 89,763 | 96,388 |
U.S.Pension Plans | Accumulated Defined Benefit Plans Adjustment, Net Unamortized Gain (Loss) | ||
Accumulated Other Comprehensive Loss | ||
Beginning balance | 96,388 | 96,194 |
Amortization of retirement benefits, net of tax | (3,817) | (3,956) |
Settlements and curtailments | 0 | 0 |
Net actuarial gain | (2,808) | 4,150 |
Foreign exchange impact | 0 | 0 |
Ending balance | 89,763 | 96,388 |
U.S.Pension Plans | Accumulated Defined Benefit Plans Adjustment, Net Prior Service Cost (Credit) | ||
Accumulated Other Comprehensive Loss | ||
Beginning balance | 0 | 0 |
Amortization of retirement benefits, net of tax | 0 | 0 |
Settlements and curtailments | 0 | 0 |
Net actuarial gain | 0 | 0 |
Foreign exchange impact | 0 | 0 |
Ending balance | 0 | 0 |
Non-U.S. Pension Plans | Accumulated Defined Benefit Plans Adjustment, Net Unamortized Gain (Loss) | ||
Accumulated Other Comprehensive Loss | ||
Beginning balance | 1,639 | 8,490 |
Amortization of retirement benefits, net of tax | 85 | (1,507) |
Settlements and curtailments | (5,355) | |
Net actuarial gain | 12 | 640 |
Foreign exchange impact | 7 | (629) |
Ending balance | 1,743 | 1,639 |
Post-Retirement Life Insurance Plan | Accumulated Defined Benefit Plans Adjustment, Net Unamortized Gain (Loss) | ||
Accumulated Other Comprehensive Loss | ||
Beginning balance | (669) | (517) |
Amortization of retirement benefits, net of tax | 95 | 63 |
Net actuarial gain | 14 | (215) |
Ending balance | $ (560) | $ (669) |
Retirement Plans - Projected be
Retirement Plans - Projected benefit obligation, accumulated benefit obligation and fair value of plan assets (Details 5) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Retirement Plans | ||
Projected benefit obligation | $ 4,281 | $ 4,184 |
Accumulated benefit obligation | 3,710 | 3,635 |
Fair value of plan assets | $ 1,523 | $ 1,480 |
Retirement Plans - Net Pension
Retirement Plans - Net Pension Income or Postretirement Expense (Details 6) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
U.S.Pension Plans | |||
Net pension expense (income) | |||
Service cost | $ 87 | $ 171 | $ 192 |
Interest cost | 11,024 | 11,258 | 12,214 |
Expected return on plan assets | (18,976) | (20,272) | (20,833) |
Defined Benefit Plan, Amortization of Gains (Losses) | (5,994) | (6,339) | (5,644) |
Additional cost due to early retirement | 0 | 0 | 172 |
Curtailment loss | 0 | 0 | 0 |
Net (income)/expense | $ (1,871) | $ (2,504) | $ (2,611) |
Benefit obligation assumptions: | |||
Discount rate | 4.16% | 4.43% | 4.07% |
Rate of compensation increase | 0.00% | 0.00% | 0.00% |
Pension income/expense assumptions: | |||
Discount rate | 4.43% | 4.07% | 4.84% |
Expected return on plan assets | 6.63% | 7.00% | 7.50% |
Rate of compensation increase | 0.00% | 0.00% | 0.00% |
Non-U.S. Pension Plans | |||
Net pension expense (income) | |||
Service cost | $ 51 | $ 63 | $ 83 |
Interest cost | 46 | 465 | 608 |
Expected return on plan assets | (26) | (446) | (677) |
Defined Benefit Plan, Amortization of Gains (Losses) | (140) | (7,492) | (231) |
Additional cost due to early retirement | 0 | 651 | 0 |
Curtailment loss | 0 | 0 | 0 |
Net (income)/expense | $ 211 | $ 8,225 | $ 245 |
Benefit obligation assumptions: | |||
Discount rate | 1.13% | 1.63% | 3.13% |
Rate of compensation increase | 2.00% | 2.00% | 0.48% |
Pension income/expense assumptions: | |||
Discount rate | 1.63% | 3.13% | 3.85% |
Expected return on plan assets | 1.63% | 2.00% | 4.06% |
Rate of compensation increase | 2.00% | 0.48% | 0.57% |
Post-Retirement Life Insurance Plan | |||
Net pension expense (income) | |||
Service cost | $ 3 | $ 5 | $ 4 |
Interest cost | 207 | 204 | 230 |
Defined Benefit Plan, Amortization of Gains (Losses) | 149 | 101 | 158 |
Net (income)/expense | $ 61 | $ 108 | $ 76 |
Benefit obligation assumptions: | |||
Discount rate | 4.10% | 4.43% | 4.07% |
Rate of compensation increase | 0.00% | 0.00% | 0.00% |
Pension income/expense assumptions: | |||
Discount rate | 4.43% | 4.07% | 4.84% |
Rate of compensation increase | 0.00% | 0.00% | 0.00% |
Retirement Plans - Pension Plan
Retirement Plans - Pension Plan Asset Allocation (Details 7) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Retirement Plans | ||
Target allocations | 100.00% | |
Percentage of plan assets | 100.00% | 100.00% |
Equity Securities | ||
Retirement Plans | ||
Target allocations | 28.00% | |
Percentage of plan assets | 25.00% | 39.00% |
Equity Securities | Common Stock | ||
Retirement Plans | ||
Percentage of plan assets | 6.00% | 9.00% |
CTS common stock included in pension plan assets, Amount | $ 17,700 | $ 25,000 |
Debt securities | ||
Retirement Plans | ||
Target allocations | 60.00% | |
Percentage of plan assets | 59.00% | 41.00% |
Other | ||
Retirement Plans | ||
Target allocations | 12.00% | |
Percentage of plan assets | 16.00% | 20.00% |
Retirement Plans - Summary of F
Retirement Plans - Summary of Fair Values of Pension Plan (Details 8) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Fair values of pension plan assets | ||
Total fair value of plan assets | $ 293,567 | $ 290,795 |
Equity Securities | U.S. | ||
Fair values of pension plan assets | ||
Total fair value of plan assets | 43,708 | 56,696 |
Equity Securities | non-U.S. | ||
Fair values of pension plan assets | ||
Total fair value of plan assets | 819 | 11,028 |
Equity Funds | ||
Fair values of pension plan assets | ||
Total fair value of plan assets | 28,052 | 17,522 |
Equity Funds | U.S. | ||
Fair values of pension plan assets | ||
Total fair value of plan assets | 26,903 | |
Equity Funds | non-U.S. | ||
Fair values of pension plan assets | ||
Total fair value of plan assets | 0 | 26,903 |
Equity Funds | International LP | ||
Fair values of pension plan assets | ||
Total fair value of plan assets | 17,522 | |
Bond funds - government | ||
Fair values of pension plan assets | ||
Total fair value of plan assets | 22,237 | 47,800 |
Bond funds - other | ||
Fair values of pension plan assets | ||
Total fair value of plan assets | 150,712 | 69,617 |
Real estate | ||
Fair values of pension plan assets | ||
Total fair value of plan assets | 3,812 | 10,006 |
Cash and Cash Equivalents | ||
Fair values of pension plan assets | ||
Total fair value of plan assets | 7,823 | 7,417 |
Partnership | ||
Fair values of pension plan assets | ||
Total fair value of plan assets | 12,862 | 13,360 |
Long/short equity-focused hedge funds | ||
Fair values of pension plan assets | ||
Total fair value of plan assets | 0 | 5,255 |
International hedge funds | ||
Fair values of pension plan assets | ||
Total fair value of plan assets | $ 23,542 | $ 25,191 |
Retirement Plans - Summary of C
Retirement Plans - Summary of Categories in Fair Value Hierarchy (Details 9) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Fair values of pension plan assets | |||
Total | $ 293,567 | $ 290,795 | |
Equity Securities | U.S. | |||
Fair values of pension plan assets | |||
Total | 43,708 | 56,696 | |
Equity Securities | non-U.S. | |||
Fair values of pension plan assets | |||
Total | 819 | 11,028 | |
Equity Funds | |||
Fair values of pension plan assets | |||
Total | 28,052 | 17,522 | |
Equity Funds | U.S. | |||
Fair values of pension plan assets | |||
Total | 26,903 | ||
Equity Funds | non-U.S. | |||
Fair values of pension plan assets | |||
Total | 0 | 26,903 | |
Equity Funds | International LP | |||
Fair values of pension plan assets | |||
Total | 17,522 | ||
Bond funds - government | |||
Fair values of pension plan assets | |||
Total | 22,237 | 47,800 | |
Bond funds - other | |||
Fair values of pension plan assets | |||
Total | 150,712 | 69,617 | |
Real estate | |||
Fair values of pension plan assets | |||
Total | 3,812 | 10,006 | |
Cash and Cash Equivalents | |||
Fair values of pension plan assets | |||
Total | 7,823 | 7,417 | |
Partnership | |||
Fair values of pension plan assets | |||
Total | 12,862 | 13,360 | |
Long/short equity-focused hedge funds | |||
Fair values of pension plan assets | |||
Total | 0 | 5,255 | |
International hedge funds | |||
Fair values of pension plan assets | |||
Total | 23,542 | 25,191 | |
Quoted Prices in Active Markets (Level 1) | |||
Fair values of pension plan assets | |||
Total | 52,350 | 75,141 | |
Quoted Prices in Active Markets (Level 1) | Equity Securities | U.S. | |||
Fair values of pension plan assets | |||
Total | 43,708 | 56,696 | |
Quoted Prices in Active Markets (Level 1) | Equity Securities | non-U.S. | |||
Fair values of pension plan assets | |||
Total | 819 | 11,028 | |
Quoted Prices in Active Markets (Level 1) | Cash and Cash Equivalents | |||
Fair values of pension plan assets | |||
Total | 7,823 | 7,417 | |
Significant Other Observable Inputs (Level 2) | |||
Fair values of pension plan assets | |||
Total | 201,001 | 161,842 | |
Significant Other Observable Inputs (Level 2) | Equity Securities | non-U.S. | |||
Fair values of pension plan assets | |||
Total | 0 | 0 | |
Significant Other Observable Inputs (Level 2) | Equity Funds | |||
Fair values of pension plan assets | |||
Total | 28,052 | ||
Significant Other Observable Inputs (Level 2) | Equity Funds | U.S. | |||
Fair values of pension plan assets | |||
Total | 26,903 | ||
Significant Other Observable Inputs (Level 2) | Equity Funds | non-U.S. | |||
Fair values of pension plan assets | |||
Total | 0 | ||
Significant Other Observable Inputs (Level 2) | Equity Funds | International LP | |||
Fair values of pension plan assets | |||
Total | 17,522 | ||
Significant Other Observable Inputs (Level 2) | Bond funds - government | |||
Fair values of pension plan assets | |||
Total | 22,237 | 47,800 | |
Significant Other Observable Inputs (Level 2) | Bond funds - other | |||
Fair values of pension plan assets | |||
Total | 150,712 | 69,617 | |
Significant Other Observable Inputs (Level 2) | Real estate | |||
Fair values of pension plan assets | |||
Total | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | |||
Fair values of pension plan assets | |||
Total | 12,862 | 13,360 | |
Significant Unobservable Inputs (Level 3) | Partnership | |||
Fair values of pension plan assets | |||
Total | 12,862 | 13,360 | $ 11,239 |
Significant Unobservable Inputs (Level 3) | Long/short equity-focused hedge funds | |||
Fair values of pension plan assets | |||
Total | 0 | ||
Significant Unobservable Inputs (Level 3) | International hedge funds | |||
Fair values of pension plan assets | |||
Total | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | Fixed Annuities | |||
Fair values of pension plan assets | |||
Total | 0 | 0 | $ 12,475 |
Not Leveled [Member] | |||
Fair values of pension plan assets | |||
Total | 27,354 | 40,452 | |
Not Leveled [Member] | Real estate | |||
Fair values of pension plan assets | |||
Total | 3,812 | 10,006 | |
Not Leveled [Member] | Long/short equity-focused hedge funds | |||
Fair values of pension plan assets | |||
Total | 5,255 | ||
Not Leveled [Member] | International hedge funds | |||
Fair values of pension plan assets | |||
Total | $ 23,542 | $ 25,191 |
Retirement Plans - Reconcilia73
Retirement Plans - Reconciliation of Level 3 Hedge Fund Asset Within Fair Value Hierarchy (Details 11) $ in Thousands | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Reconciliation of Level 3 fund assets | |
Beginning Balance | $ 290,795 |
Ending Balance | 293,567 |
International hedge funds | |
Reconciliation of Level 3 fund assets | |
Beginning Balance | 25,191 |
Ending Balance | 23,542 |
Significant Unobservable Inputs (Level 3) | |
Reconciliation of Level 3 fund assets | |
Beginning Balance | 13,360 |
Ending Balance | 12,862 |
Significant Unobservable Inputs (Level 3) | International hedge funds | |
Reconciliation of Level 3 fund assets | |
Beginning Balance | 0 |
Ending Balance | $ 0 |
Retirement Plans - Reconcilia74
Retirement Plans - Reconciliation of Level 3 Partnership Assets Within Fair Value Hierarchy (Details 12) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Reconciliation of Level 3 fund assets | ||
Beginning Balance | $ 290,795 | |
Ending Balance | 293,567 | $ 290,795 |
Partnership | ||
Reconciliation of Level 3 fund assets | ||
Beginning Balance | 13,360 | |
Ending Balance | 12,862 | 13,360 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Reconciliation of Level 3 fund assets | ||
Beginning Balance | 13,360 | |
Ending Balance | 12,862 | 13,360 |
Significant Unobservable Inputs (Level 3) [Member] | Partnership | ||
Reconciliation of Level 3 fund assets | ||
Beginning Balance | 13,360 | 11,239 |
Net ordinary gain attributable to partnership assets | 0 | 0 |
Capital contributions | 1,419 | 2,808 |
Realized and unrealized gain | 584 | 754 |
Capital distributions | (2,501) | (1,441) |
Ending Balance | $ 12,862 | $ 13,360 |
Retirement Plans - Reconcilia75
Retirement Plans - Reconciliation of Level 3 Fixed Annuity Contracts Within Fair Value Hierarchy (Details 13) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Reconciliation of Level 3 fund assets | ||
Beginning Balance | $ 290,795 | |
Benefits paid | (165) | $ (172) |
Ending Balance | 293,567 | 290,795 |
Significant Unobservable Inputs (Level 3) | ||
Reconciliation of Level 3 fund assets | ||
Beginning Balance | 13,360 | |
Ending Balance | 12,862 | 13,360 |
Significant Unobservable Inputs (Level 3) | Annuitization Benefit | ||
Reconciliation of Level 3 fund assets | ||
Beginning Balance | 0 | 12,475 |
Purchases | 0 | 0 |
Benefits paid | (12,475) | |
Assets transferred due to termination of plan | 0 | |
Net loss | 0 | 0 |
Ending Balance | $ 0 | $ 0 |
Retirement Plans - Estimated Fu
Retirement Plans - Estimated Future Benefit Payments (Details 14) $ in Thousands | Dec. 31, 2016USD ($) |
U.S.Pension Plans | |
Estimated Future Benefit Payments | |
2,016 | $ 16,411 |
2,017 | 16,280 |
2,018 | 16,390 |
2,019 | 16,488 |
2,020 | 16,504 |
2022-2025 | 80,563 |
Total | 162,636 |
Non-U.S. Pension Plans | |
Estimated Future Benefit Payments | |
2,016 | 80 |
2,017 | 88 |
2,018 | 92 |
2,019 | 239 |
2,020 | 91 |
2022-2025 | 711 |
Total | 1,301 |
Post-Retirement Life Insurance Plan | |
Estimated Future Benefit Payments | |
2,016 | 387 |
2,017 | 378 |
2,018 | 369 |
2,019 | 360 |
2,020 | 350 |
2022-2025 | 1,596 |
Total | $ 3,440 |
Retirement Plans - Defined Cont
Retirement Plans - Defined Contribution Plans (Details 15) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Contribution Plans | |||
401(k) and other plan expense | $ 2,841 | $ 3,352 | $ 3,719 |
Goodwill and Other Intangible78
Goodwill and Other Intangible Assets - Summary of Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Other intangible assets: | |||
Gross Carrying Amount | $ 112,620 | $ 77,194 | |
Accumulated Amortization | (48,250) | (42,436) | |
Net Amount | 64,370 | 34,758 | |
Amortization expense | $ 5,815 | 4,035 | $ 4,190 |
Finite-Lived Intangible Assets, Remaining Amortization Period | 11 years 4 months 24 days | ||
Customer lists / relationships | |||
Other intangible assets: | |||
Gross Carrying Amount | $ 63,386 | 51,804 | |
Accumulated Amortization | (30,318) | (27,101) | |
Net Amount | $ 33,068 | 24,703 | |
Finite-Lived Intangible Assets, Remaining Amortization Period | 11 years 7 months 6 days | ||
Patents | |||
Other intangible assets: | |||
Gross Carrying Amount | $ 10,319 | 10,319 | |
Accumulated Amortization | (10,319) | (10,319) | |
Net Amount | 0 | 0 | |
Technology and other intangibles | |||
Other intangible assets: | |||
Gross Carrying Amount | 36,715 | 12,871 | |
Accumulated Amortization | (7,613) | (5,016) | |
Net Amount | $ 29,102 | 7,855 | |
Finite-Lived Intangible Assets, Remaining Amortization Period | 11 years | ||
In process research and development | |||
Other intangible assets: | |||
Gross Carrying Amount | $ 2,200 | 2,200 | |
Accumulated Amortization | 0 | 0 | |
Net Amount | $ 2,200 | $ 2,200 |
Goodwill and Other Intangible79
Goodwill and Other Intangible Assets - Amortization Expense Remaining (Details 2) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Amortization expense remaining | ||
2,016 | $ 6,064 | |
2,017 | 5,956 | |
2,018 | 5,947 | |
2,019 | 5,947 | |
2,020 | 5,868 | |
Thereafter | 34,588 | |
Net Amount | $ 64,370 | $ 34,758 |
Goodwill and Other Intangible80
Goodwill and Other Intangible Assets - Summary of Reconciliation of Goodwill (Details 3) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Goodwill | ||
Beginning balance | $ 33,865 | $ 32,047 |
Increase from acquisition | 27,879 | 1,818 |
Ending balance | $ 61,744 | $ 33,865 |
Costs Associated with Exit an81
Costs Associated with Exit and Restructuring Activities - Additional Information (Details) $ in Thousands | 12 Months Ended | 21 Months Ended | 31 Months Ended | |||
Dec. 31, 2016USD ($)position | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2015position | Dec. 31, 2015position | Jun. 28, 2015USD ($) | |
Restructuring charges | ||||||
Restructuring Charges | $ 3,048 | $ 14,564 | $ 5,941 | |||
June 2013 Plan April 2014 Plan and June 2016 Plan | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring Costs | 3,048 | 15,195 | 7,876 | |||
June 2013 Plan April 2014 Plan and June 2016 Plan | Cost of goods sold | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring Costs | 0 | 631 | 1,935 | |||
June 2013 Plan April 2014 Plan and June 2016 Plan | Operating Expense | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring Costs | $ 3,048 | 14,564 | 5,941 | |||
June2016 Plan | ||||||
Restructuring charges | ||||||
Elimination of workforce | position | 230 | |||||
June2016 Plan | Operating Expense | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring and Related Cost, Expected Cost | $ 16,000 | |||||
Restructuring charges | ||||||
Restructuring Charges | 3,048 | 0 | ||||
June2016 Plan | Workforce reduction | Operating Expense | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring and Related Cost, Expected Cost | 3,075 | |||||
April 2014 Plan | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring and Related Cost, Expected Cost | 9,950 | |||||
Restructuring charges | ||||||
Restructuring Charges | 0 | 4,923 | 3,470 | |||
Estimated restructuring costs | $ 4,250 | |||||
Elimination of workforce | position | 120 | |||||
April 2014 Plan | Cost of goods sold | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring and Related Cost, Expected Cost | 4,050 | |||||
April 2014 Plan | Operating Expense | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring and Related Cost, Expected Cost | 5,900 | |||||
April 2014 Plan | Workforce reduction | Operating Expense | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring and Related Cost, Expected Cost | 4,200 | |||||
June 2013 Plan | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring and Related Cost, Expected Cost | 22,600 | |||||
Restructuring charges | ||||||
Restructuring Charges | $ 10,272 | $ 4,406 | ||||
June 2013 Plan | Cost of goods sold | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring and Related Cost, Expected Cost | 1,800 | |||||
June 2013 Plan | Workforce reduction | ||||||
Restructuring charges | ||||||
Elimination of workforce | position | 350 | |||||
June 2013 Plan | Workforce reduction | Operating Expense | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring and Related Cost, Expected Cost | $ 10,150 |
Costs Associated with Exit an82
Costs Associated with Exit and Restructuring Activities - Restructuring and Restructuring Related Charges of Actual Costs (Details 2) $ in Thousands | 12 Months Ended | 21 Months Ended | 31 Months Ended | ||
Dec. 31, 2016USD ($)position | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2015USD ($)position | Dec. 31, 2015USD ($)position | |
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Charges | $ 3,048 | $ 14,564 | $ 5,941 | ||
April 2014 Plan | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Charges | 0 | 4,923 | 3,470 | ||
Restructuring charges | |||||
Planned Costs | 9,950 | ||||
Actual costs incurred | 8,393 | ||||
Elimination of workforce | position | 120 | ||||
April 2014 Plan | Cost of goods sold | |||||
Restructuring charges | |||||
Planned Costs | 4,050 | ||||
Actual costs incurred | 557 | ||||
April 2014 Plan | Operating Expense | |||||
Restructuring charges | |||||
Planned Costs | 5,900 | ||||
Actual costs incurred | 7,836 | ||||
April 2014 Plan | Inventory write-down | Cost of goods sold | |||||
Restructuring charges | |||||
Planned Costs | 850 | ||||
Actual costs incurred | 0 | ||||
April 2014 Plan | Equipment relocation | Cost of goods sold | |||||
Restructuring charges | |||||
Planned Costs | 1,800 | ||||
Actual costs incurred | 444 | ||||
April 2014 Plan | Other charges | Cost of goods sold | |||||
Restructuring charges | |||||
Planned Costs | 1,400 | ||||
Actual costs incurred | 113 | ||||
April 2014 Plan | Workforce reduction | Operating Expense | |||||
Restructuring charges | |||||
Planned Costs | 4,200 | ||||
Actual costs incurred | 4,423 | ||||
April 2014 Plan | Other charges, including pension termination costs | Operating Expense | |||||
Restructuring charges | |||||
Planned Costs | 1,700 | ||||
Actual costs incurred | $ 3,413 | ||||
June2016 Plan | |||||
Restructuring charges | |||||
Elimination of workforce | position | 230 | ||||
June2016 Plan | Operating Expense | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Charges | $ 3,048 | 0 | |||
Restructuring charges | |||||
Planned Costs | 16,000 | ||||
Actual costs incurred | 3,048 | ||||
June2016 Plan | Equipment relocation | Operating Expense | |||||
Restructuring charges | |||||
Planned Costs | 7,925 | ||||
Actual costs incurred | 341 | ||||
June2016 Plan | Other charges | Operating Expense | |||||
Restructuring charges | |||||
Planned Costs | 1,300 | ||||
Actual costs incurred | 203 | ||||
June2016 Plan | Workforce reduction | Operating Expense | |||||
Restructuring charges | |||||
Planned Costs | 3,075 | ||||
Actual costs incurred | 2,504 | ||||
June2016 Plan | Asset impairment charge | Operating Expense | |||||
Restructuring charges | |||||
Planned Costs | 3,700 | ||||
Actual costs incurred | 0 | ||||
April 2014 Plan | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Costs | 3,048 | 15,195 | 7,876 | ||
April 2014 Plan | Cost of goods sold | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Costs | 0 | 631 | 1,935 | ||
April 2014 Plan | Operating Expense | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Costs | 3,048 | 14,564 | 5,941 | ||
June 2013 Plan | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Charges | 10,272 | $ 4,406 | |||
Restructuring charges | |||||
Planned Costs | 22,600 | ||||
Actual costs incurred | 27,596 | $ 27,596 | $ 27,596 | ||
June 2013 Plan | Cost of goods sold | |||||
Restructuring charges | |||||
Planned Costs | 1,800 | ||||
Actual costs incurred | 3,637 | 3,637 | 3,637 | ||
June 2013 Plan | Inventory write-down | Cost of goods sold | |||||
Restructuring charges | |||||
Planned Costs | 800 | ||||
Actual costs incurred | 1,143 | 1,143 | 1,143 | ||
June 2013 Plan | Equipment relocation | Cost of goods sold | |||||
Restructuring charges | |||||
Planned Costs | 900 | ||||
Actual costs incurred | 1,792 | 1,792 | 1,792 | ||
June 2013 Plan | Equipment relocation | Operating Expense | |||||
Restructuring charges | |||||
Planned Costs | 20,800 | ||||
Actual costs incurred | 23,959 | 23,959 | 23,959 | ||
June 2013 Plan | Other charges | Cost of goods sold | |||||
Restructuring charges | |||||
Planned Costs | 100 | ||||
Actual costs incurred | 702 | 702 | $ 702 | ||
June 2013 Plan | Workforce reduction | |||||
Restructuring charges | |||||
Elimination of workforce | position | 350 | ||||
June 2013 Plan | Workforce reduction | Operating Expense | |||||
Restructuring charges | |||||
Planned Costs | 10,150 | ||||
Actual costs incurred | 9,615 | 9,615 | $ 9,615 | ||
June 2013 Plan | Asset impairment charge | Operating Expense | |||||
Restructuring charges | |||||
Planned Costs | 3,000 | ||||
Actual costs incurred | 4,139 | 4,139 | 4,139 | ||
June 2013 Plan | Other charges, including pension termination costs | Operating Expense | |||||
Restructuring charges | |||||
Planned Costs | 7,650 | ||||
Actual costs incurred | $ 10,205 | $ 10,205 | $ 10,205 | ||
Amended June 2013 Plan | |||||
Restructuring charges | |||||
Planned Costs | $ 4,000 | ||||
Amended June 2013 Plan | Workforce reduction | |||||
Restructuring charges | |||||
Elimination of workforce | position | 130 | ||||
Non-U.S. Pension Plans | Amended June 2013 Plan | |||||
Restructuring charges | |||||
Planned Costs | $ 2,000 | ||||
Non-U.S. Pension Plans | Amended June 2013 Plan | Workforce reduction | |||||
Restructuring charges | |||||
Planned Costs | $ 2,000 |
Costs Associated with Exit an83
Costs Associated with Exit and Restructuring Activities - Restructuring Reserve Activity (Details 3) $ in Thousands | 12 Months Ended | 21 Months Ended | 31 Months Ended | ||
Dec. 31, 2016USD ($)position | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2015USD ($)position | Dec. 31, 2015USD ($)position | |
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Reserve, Noncurrent | $ 1,121 | ||||
Restructuring Charges | 3,048 | $ 14,564 | $ 5,941 | ||
Restructuring reserve activity | |||||
Restructuring Reserve, Current | $ 1,041 | ||||
June2016 Plan | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Elimination of workforce | position | 230 | ||||
Restructuring reserve activity | |||||
Restructuring liability at ending | $ 1,739 | ||||
June 2013 Plan April 2014 Plan and June 2016 Plan | |||||
Restructuring reserve activity | |||||
Restructuring liability at beginning | 826 | ||||
Restructuring and restructuring-related charges | 3,048 | ||||
Cost paid | (1,729) | ||||
Restructuring Reserve, Translation and Other Adjustment | 17 | ||||
Restructuring liability at ending | 2,162 | 826 | $ 826 | $ 826 | |
Amended June 2013 Plan | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and Related Cost, Expected Cost | 4,000 | ||||
April 2014 Plan | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Elimination of workforce | position | 120 | ||||
Restructuring Charges | 0 | 4,923 | 3,470 | ||
Restructuring and Related Cost, Expected Cost | 9,950 | ||||
Restructuring reserve activity | |||||
Restructuring liability at ending | 0 | ||||
June 2013 Plan | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Charges | 10,272 | $ 4,406 | |||
Restructuring and Related Cost, Expected Cost | 22,600 | ||||
Restructuring reserve activity | |||||
Restructuring liability at ending | 0 | ||||
Operating Expense | June2016 Plan | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Charges | 3,048 | $ 0 | |||
Restructuring and Related Cost, Expected Cost | 16,000 | ||||
Operating Expense | April 2014 Plan | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and Related Cost, Expected Cost | $ 5,900 | ||||
Workforce reduction | Amended June 2013 Plan | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Elimination of workforce | position | 130 | ||||
Workforce reduction | June 2013 Plan | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Elimination of workforce | position | 350 | ||||
Workforce reduction | Operating Expense | June2016 Plan | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and Related Cost, Expected Cost | $ 3,075 | ||||
Workforce reduction | Operating Expense | April 2014 Plan | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and Related Cost, Expected Cost | 4,200 | ||||
Workforce reduction | Operating Expense | June 2013 Plan | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and Related Cost, Expected Cost | 10,150 | ||||
Equipment relocation | Operating Expense | June2016 Plan | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and Related Cost, Expected Cost | 7,925 | ||||
Equipment relocation | Operating Expense | June 2013 Plan | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and Related Cost, Expected Cost | 20,800 | ||||
Asset impairment charge | Operating Expense | June2016 Plan | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and Related Cost, Expected Cost | 3,700 | ||||
Asset impairment charge | Operating Expense | June 2013 Plan | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and Related Cost, Expected Cost | 3,000 | ||||
Other charges | Operating Expense | June2016 Plan | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and Related Cost, Expected Cost | $ 1,300 |
Accrued Liabilities and Other84
Accrued Liabilities and Other Liabilities - Components of Accrued Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Accrued Liabilities | ||||
Accrued product related costs | $ 5,556 | $ 5,245 | ||
Accrued income taxes | 9,826 | 8,845 | ||
Accrued property and other taxes | 1,917 | 1,838 | ||
Dividends payable | 1,309 | 1,302 | ||
Remediation reserves | 18,176 | 20,603 | $ 3,918 | $ 5,116 |
Other accrued liabilities | 8,924 | 9,341 | ||
Total accrued expenses and other liabilities | $ 45,708 | $ 47,174 |
Contingencies - Rollforward of
Contingencies - Rollforward of Remediation Reserves (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Contingencies | |||
Accrued liabilities start of period | $ 20,603 | $ 3,918 | $ 5,116 |
Remediation expense | 556 | 18,591 | 1,521 |
Remediation payments | (2,983) | (1,906) | (2,719) |
Accrued liabilities end of period | $ 18,176 | $ 20,603 | $ 3,918 |
Leases - Minimum future obligat
Leases - Minimum future obligations (Details) $ in Thousands | Dec. 31, 2016USD ($) |
Minimum future obligations | |
2,016 | $ 4,635 |
2,017 | 3,224 |
2,018 | 1,829 |
2,019 | 1,204 |
2,020 | 583 |
Thereafter | 2,526 |
Total minimum lease obligations | $ 14,001 |
Leases - Rent expense (Details
Leases - Rent expense (Details 2) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Sublease income | |||
Rent expense | $ 5,694 | $ 3,550 | $ 4,300 |
Leases - Lease terms (Details 3
Leases - Lease terms (Details 3) $ in Thousands | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Sublease income | |
Sublease income | $ 457 |
Future sublease income due in twelve months | 500 |
Operating Leases, Future Minimum Payments Receivable, Current | 487 |
Future Minimum Sublease Rentals, Sale Leaseback Transactions, Thereafter | $ 1,872 |
Leases - Sale-leaseback transac
Leases - Sale-leaseback transaction (Details 4) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2012 | |
Sale-leaseback transaction, deferred gain | ||
Sale-leaseback transaction gain | $ 2,108 | |
Sale-leaseback transaction gain, deferred | $ 4,500 |
Debt - Long-Term Debt (Details)
Debt - Long-Term Debt (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Long-term debt | ||
Revolving credit facility due in 2020 | $ 89,100,000 | $ 90,700,000 |
Weighted-average interest rate | 1.90% | 1.50% |
Amount available | $ 208,735,000 | $ 106,985,000 |
Total credit facility | 300,000,000 | 200,000,000 |
Standby letters of credit | $ 2,165,000 | $ 2,315,000 |
Commitment fee percentage per annum | 0.25% | 0.25% |
Debt - Additional Information (
Debt - Additional Information (Details 2) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Sep. 30, 2016USD ($)instrument | Sep. 30, 2012USD ($)instrument | Jun. 24, 2012USD ($)instrument | |
Amortization expense | ||||||
Amortization expense | $ 163 | $ 0 | $ 200 | |||
Interest Rate Swap | ||||||
Interest rate swap | ||||||
Number of interest rate derivatives held | instrument | 3 | 4 | 4 | |||
Amount of swap agreement | $ 50,000 | $ 25,000 | $ 50,000 |
Debt - Summary of Interest Rate
Debt - Summary of Interest Rate Swaps Activity Recorded in Other Comprehensive Income Before Tax (Details 3) - Interest Rate Swap - Designated as Hedging Instrument - Cash Flow Hedge - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Interest rate swap activity recorded in Other comprehensive earnings before tax | |||
Unrealized gain (loss) | $ 593 | $ (516) | $ (510) |
Interest Expense | |||
Interest rate swap activity recorded in Other comprehensive earnings before tax | |||
Realized gain reclassified to interest expense | $ 928 | $ 768 | $ 488 |
Debt - Summary of Interest Ra93
Debt - Summary of Interest Rate Swaps Included on Balance Sheets (Details 4) - Interest Rate Swap - Designated as Hedging Instrument - Cash Flow Hedge - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Other Current Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Current | $ 2 | |
Other Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Noncurrent | 751 | |
Accrued Liabilities | ||
Interest rate swaps included on the balance sheet | ||
Accrued expenses and other liabilities | 0 | $ 791 |
Other Noncurrent Liabilities | ||
Interest rate swaps included on the balance sheet | ||
Other long-term obligations | $ 0 | $ (23) |
Derivatives Derivative Financ94
Derivatives Derivative Financial Instruments - Naratives (Details) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($)item | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Sep. 30, 2012USD ($)item | Jun. 24, 2012USD ($)item | |
Derivative [Line Items] | ||||||
Unrealized Loss on Foreign Currency Derivatives, before Tax | $ 637 | |||||
Derivative Asset | 0 | |||||
Foreign Currency Cash Flow Hedge Liability at Fair Value | 601 | |||||
Designated as Hedging Instrument | Interest Rate Swap | ||||||
Derivative [Line Items] | ||||||
Foreign Currency Cash Flow Hedge Gain (Loss) to be Reclassified During Next 12 Months | (2) | |||||
Cash Flow Hedge | Designated as Hedging Instrument | Foreign currency hedges | ||||||
Derivative [Line Items] | ||||||
Foreign Currency Cash Flow Hedge Gain (Loss) to be Reclassified During Next 12 Months | 637 | |||||
Derivative, Notional Amount | 11,600 | |||||
Interest rate swap - cash flow hedge | $ 601 | $ 0 | ||||
Cash Flow Hedge | Designated as Hedging Instrument | Interest Rate Swap | ||||||
Derivative [Line Items] | ||||||
Derivative, Notional Amount | $ 50,000 | $ 25,000 | $ 50,000 | |||
Derivative, Number of Instruments Held | item | 3 | 4 | 4 | |||
Interest rate swap - cash flow hedge | $ 768 | $ 1,020 |
Derivatives Fair Value Derivati
Derivatives Fair Value Derivatives, Balance Sheet Location (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Derivatives, Fair Value [Line Items] | ||
Foreign Currency Cash Flow Hedge Liability at Fair Value | $ 601 | |
Cash Flow Hedge | Interest Rate Swap | Other Current Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Foreign Currency Cash Flow Hedge Liability at Fair Value | $ 791 | |
Cash Flow Hedge | Interest Rate Swap | Other Noncurrent Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Foreign Currency Cash Flow Hedge Liability at Fair Value | $ (23) | |
Cash Flow Hedge | Interest Rate Swap | Other Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Foreign Currency Cash Flow Hedge Liability at Fair Value | 751 | |
Cash Flow Hedge | Interest Rate Swap | Designated as Hedging Instrument | Other Current Assets | ||
Derivatives, Fair Value [Line Items] | ||
Foreign Currency Cash Flow Hedge Liability at Fair Value | 2 | |
Cash Flow Hedge | Foreign currency hedges | Other Current Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Foreign Currency Cash Flow Hedge Liability at Fair Value | $ 601 |
Derivatives Derivative Instrume
Derivatives Derivative Instruments, Gain (Loss) Table (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (Loss) on Foreign Currency Derivatives Recorded in Earnings, Net | $ 36 | $ 0 | $ 0 |
Cash Flow Hedge | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, Gain (Loss) on Derivative, Net | (946) | (768) | |
Foreign currency hedges | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments Not Designated as Hedging Instruments, Loss | $ (5) | ||
Foreign currency hedges | Cash Flow Hedge | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments, Income Statement Location of Gain (Loss) Reclassified from Accumulated OCI | (12) | ||
Loss on Cash Flow Hedge Ineffectiveness | $ (1) | ||
Gain (Loss) on Foreign Currency Derivatives Recorded in Earnings, Net | (18) | ||
Foreign currency hedges | Net sales | Cash Flow Hedge | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, Gain (Loss) on Derivative, Net | (124) | ||
Foreign currency hedges | Cost of Goods Sold | Cash Flow Hedge | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, Gain (Loss) on Derivative, Net | 111 | ||
Foreign currency hedges | Selling, General and Administrative Expenses | Cash Flow Hedge | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, Gain (Loss) on Derivative, Net | 1 | ||
Interest Rate Swap | Interest Expense | Cash Flow Hedge | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, Gain (Loss) on Derivative, Net | $ (928) | $ (768) |
Accumulated Other Comprehensi97
Accumulated Other Comprehensive Loss - Components of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Accumulated other comprehensive loss | |||
Accumulated other comprehensive loss | $ (93,194) | $ (99,005) | $ (104,233) |
Gain (Loss) recognized in OCI, Net | (1,190) | (2,060) | |
Gain (Loss) reclassified from AOCI to income, Net | 7,001 | 7,288 | |
Defined benefit pension item | |||
Accumulated other comprehensive loss | |||
Accumulated other comprehensive (loss) income, Gross, Beginning balance | (768) | (1,020) | |
Accumulated other comprehensive (loss) income, Income tax (benefit), Beginning balance | 289 | 384 | |
Accumulated other comprehensive loss | 74 | (479) | (636) |
Gain (Loss) recognized in OCI, Gross | (56) | (516) | |
Gain (Loss) recognized in OCI, Income tax (benefit) | 20 | 194 | |
Gain (Loss) recognized in OCI, Net | (36) | (322) | |
Gain (Loss) reclassified from AOCI to income, Gross | 940 | 768 | |
Gain (Loss) reclassified from AOCI to income, Income tax (benefit) | (351) | (289) | |
Gain (Loss) reclassified from AOCI to income, Net | 589 | 479 | |
Accumulated other comprehensive (loss) income, Gross, Ending balance | 116 | (768) | |
Accumulated other comprehensive (loss) income, Income tax (benefit), Ending balance | (42) | 289 | |
Accumulated Defined Benefit Plans Adjustment | |||
Accumulated other comprehensive loss | |||
Accumulated other comprehensive (loss) income, Gross, Beginning balance | (161,719) | (169,291) | |
Accumulated other comprehensive (loss) income, Income tax (benefit), Beginning balance | 64,361 | 65,124 | |
Accumulated other comprehensive loss | (90,946) | (97,358) | (104,167) |
Gain (Loss) recognized in OCI, Gross | 0 | 0 | |
Gain (Loss) recognized in OCI, Income tax (benefit) | 0 | 0 | |
Gain (Loss) recognized in OCI, Net | 0 | 0 | |
Gain (Loss) reclassified from AOCI to income, Gross | 10,101 | 7,572 | |
Gain (Loss) reclassified from AOCI to income, Income tax (benefit) | (3,689) | (763) | |
Gain (Loss) reclassified from AOCI to income, Net | 6,412 | 6,809 | |
Accumulated other comprehensive (loss) income, Gross, Ending balance | (151,618) | (161,719) | |
Accumulated other comprehensive (loss) income, Income tax (benefit), Ending balance | 60,672 | 64,361 | |
Unrealized gains and losses on cash flow hedges | |||
Accumulated other comprehensive loss | |||
Accumulated other comprehensive (loss) income, Gross, Beginning balance | (1,279) | 245 | |
Accumulated other comprehensive (loss) income, Income tax (benefit), Beginning balance | 111 | 325 | |
Accumulated other comprehensive loss | (2,322) | (1,168) | $ 570 |
Gain (Loss) recognized in OCI, Gross | (1,135) | (1,524) | |
Gain (Loss) recognized in OCI, Income tax (benefit) | (19) | (214) | |
Gain (Loss) recognized in OCI, Net | (1,154) | (1,738) | |
Gain (Loss) reclassified from AOCI to income, Gross | 0 | 0 | |
Gain (Loss) reclassified from AOCI to income, Income tax (benefit) | 0 | 0 | |
Gain (Loss) reclassified from AOCI to income, Net | 0 | 0 | |
Accumulated other comprehensive (loss) income, Gross, Ending balance | (2,414) | (1,279) | |
Accumulated other comprehensive (loss) income, Income tax (benefit), Ending balance | $ 92 | $ 111 |
Shareholders' Equity - Summary
Shareholders' Equity - Summary of Share Count and Par Value Data Related to Shareholders' Equity (Details) - $ / shares | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Preferred Stock | |||
Par value per share | $ 0 | $ 0 | |
Shares authorized, shares | 25,000,000 | 25,000,000 | |
Shares outstanding, shares | 0 | 0 | |
Common Stock | |||
Par value per share | $ 0 | $ 0 | |
Shares authorized, shares | 75,000,000 | 75,000,000 | |
Shares issued, shares | 56,456,516 | 56,242,499 | |
Shares outstanding | 32,762,494 | 32,548,477 | 33,392,060 |
Treasury stock | |||
Shares held, shares | 23,694,022 | 23,694,022 |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Details 2) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Common Stock | ||
Common stock repurchased, shares | 0 | 984,382 |
Common stock repurchased, Value | $ 18,088 | |
Shares available for future purchases | $ 17,554 |
Shareholders' Equity - Summa100
Shareholders' Equity - Summary of Common Shares Outstanding (Details 3) - shares | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Roll forward of common shares outstanding | ||
Balance at the beginning of the year, shares | 32,548,477 | 33,392,060 |
Repurchases, shares | 0 | (984,382) |
Stock option issuances, shares | 0 | 5,200 |
Restricted share issuances, shares | 214,017 | 135,599 |
Balance at the end of the period, shares | 32,762,494 | 32,548,477 |
Equity-Based Compensation - Add
Equity-Based Compensation - Additional Information (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016USD ($)planshares | Dec. 31, 2015USD ($)shares | |
Equity-Based Compensation | ||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number | 201,900 | |
Equity-Based Compensation | ||
Number of Equity Based Compensation Plan | plan | 4 | |
Other accrued liabilities | $ | $ 8,924 | $ 9,341 |
Options | ||
Equity-Based Compensation | ||
Stock options exercisable cumulative annual installments period | 10 years | |
Stock option contractual term | 10 years | |
Nonvested stock options outstanding | 0 | |
Service-Based RSUs | ||
Equity-Based Compensation | ||
Number of shares issuable, against each unit of RSU | 1 | |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights | three | |
Performance-Based RSUs | ||
Equity-Based Compensation | ||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number | 249,560 | |
Equity-Based Compensation | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights | three | |
RSU | ||
Equity-Based Compensation | ||
Tax benefit from the issuance of stock | $ | $ 1,829 | |
Cash Settled Awards [Member] | ||
Equity-Based Compensation | ||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number | 12,074 | 7,958 |
Equity-Based Compensation | ||
Other accrued liabilities | $ | $ 170 | $ 94 |
Minimum | Options | ||
Equity-Based Compensation | ||
Vesting period | 4 years | |
Minimum | Performance-Based RSUs | ||
Equity-Based Compensation | ||
Vesting percent | 0.00% | |
Maximum | Performance-Based RSUs | ||
Equity-Based Compensation | ||
Vesting percent | 200.00% |
Equity-Based Compensation - Sum
Equity-Based Compensation - Summary of Equity-Based Compensation Expense (Details 2) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Equity-Based Compensation | |||
Restricted stock units | $ 2,738 | $ 3,195 | $ 2,660 |
CTS Cash Settled Awards [Member] | |||
Equity-Based Compensation | |||
Restricted stock units | 76 | 16 | 17 |
Service-Based RSUs | |||
Equity-Based Compensation | |||
Restricted stock units | 1,997 | 1,944 | 1,771 |
Performance-Based RSUs | |||
Equity-Based Compensation | |||
Restricted stock units | 665 | 1,235 | 872 |
RSUs | |||
Equity-Based Compensation | |||
Restricted stock units | 2,738 | 3,195 | 2,660 |
Income tax benefit | $ 1,029 | $ 1,201 | $ 1,000 |
Equity-Based Compensation - 103
Equity-Based Compensation - Summary of Equity-Based Compensation Expense related to Non-Vested RSUs (Details 3) $ in Thousands | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Service-Based RSUs | |
Equity-Based Compensation | |
Unrecognized compensation cost | $ 1,625 |
Weighted average period | 1 year 1 month 13 days |
Performance-Based RSUs | |
Equity-Based Compensation | |
Unrecognized compensation cost | $ 1,231 |
Weighted average period | 1 year 8 months 23 days |
RSUs | |
Equity-Based Compensation | |
Unrecognized compensation cost | $ 2,856 |
Weighted average period | 1 year 4 months 17 days |
Equity-Based Compensation - 104
Equity-Based Compensation - Summary of Status of Equity-Based Compensation Plans (Details 4) | Dec. 31, 2016shares |
Performance Option [Member] | |
Summary of Status of Equity-Based Compensation Plans | |
Stock options outstanding, shares | 320,000 |
2014 Plan | |
Summary of Status of Equity-Based Compensation Plans | |
Awards originally available to be granted | 1,500,000 |
Stock options outstanding, shares | 929,511 |
Restricted Stock Units, awarded and vested | 54,544 |
RSUs outstanding, shares | 609,511 |
Awards available to be granted | 515,945 |
2014 Plan | Performance Option [Member] | |
Summary of Status of Equity-Based Compensation Plans | |
Stock options outstanding, shares | 320,000 |
2009 Plan | |
Summary of Status of Equity-Based Compensation Plans | |
Awards originally available to be granted | 3,400,000 |
Stock options outstanding, shares | 212,849 |
RSUs outstanding, shares | 212,849 |
Awards available to be granted | 0 |
2009 Plan | Performance Option [Member] | |
Summary of Status of Equity-Based Compensation Plans | |
Stock options outstanding, shares | 0 |
2004 Plan | |
Summary of Status of Equity-Based Compensation Plans | |
Awards originally available to be granted | 6,500,000 |
Stock options outstanding, shares | 78,947 |
RSUs outstanding, shares | 78,947 |
Awards available to be granted | 0 |
2004 Plan | Performance Option [Member] | |
Summary of Status of Equity-Based Compensation Plans | |
Stock options outstanding, shares | 0 |
Directors' Plan | |
Summary of Status of Equity-Based Compensation Plans | |
Stock options outstanding, shares | 25,985 |
RSUs outstanding, shares | 25,985 |
Awards available to be granted | 0 |
Directors' Plan | Performance Option [Member] | |
Summary of Status of Equity-Based Compensation Plans | |
Stock options outstanding, shares | 0 |
Equity-Based Compensation - 105
Equity-Based Compensation - Summary of Status of Stock Options (Details 5) | 12 Months Ended |
Dec. 31, 2016$ / sharesshares | |
Options | |
Additional Disclosure Status of Stock Options | |
Weighted average remaining contractual life | 0 years |
Share Based Compensation Arrangement By Share Based Payment Award Options Maximum Contractual Term | 10 years |
Performance Option [Member] | |
Summary of Status of Stock Options | |
Outstanding, Options at end of period, shares | shares | 320,000 |
Weighted- Average Exercise Price | |
Exercisable, Weighted - Average Exercise Price at end of period | $ / shares | $ 18.37 |
Additional Disclosure Status of Stock Options | |
Share Based Compensation Arrangement By Share Based Payment Award Options Maximum Contractual Term | 5 years |
Equity-Based Compensation - 106
Equity-Based Compensation - Summary of Service-Based Restricted Stock Units (Details 6) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding | |||
Outstanding at end of year, units | 201,900 | ||
Weighted Average Grant Date Fair Value | |||
End of year, Weighted-average Grant-Date Fair Value | $ 16.48 | ||
Directors' Plan | |||
Summary of Service-Based Restricted Stock Units | |||
Nonvested at end of period, RSUs, shares | 25,985 | ||
RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding | |||
Outstanding at beginning of year, units | 505,170 | ||
Granted, units | 195,266 | ||
Released, units | (102,967) | ||
Forfeited, units | (42,991) | ||
Outstanding at end of year, units | 554,478 | 505,170 | |
Weighted Average Grant Date Fair Value | |||
Beginning of year, Weighted-average Grant-Date Fair Value | $ 13.13 | ||
Granted, Weighted-average Grant-Date Fair Value | 15.07 | $ 17.31 | $ 9 |
Converted, Weighted-average Grant-Date Fair Value | 14.27 | ||
Forfeited, Weighted-average Grant-Date Fair Value | 16.75 | ||
End of year, Weighted-average Grant-Date Fair Value | 13.37 | $ 13.13 | |
Convertible at end of period, Weighted-average Grant-Date Fair Value | $ 11.34 | ||
Released at end of period, RSUs | 303,233 | ||
Weighted Average Remaining Contractual Term | 21 years 9 months 18 days | ||
Released, Weighted average remaining contractual life | 33 years 8 months 12 days | ||
Aggregate intrinsic value, outstanding value | $ 12,420 | ||
Released Aggregate Intrinsic Value | 6,792 | ||
Intrinsic value of RSU's converted | 1,520 | $ 2,933 | $ 5,670 |
Fair value of RSU's vested | $ 1,928 | $ 1,908 | $ 2,055 |
Nonvested RSUs | |||
Summary of Service-Based Restricted Stock Units | |||
Nonvested at beginning of the year, RSUs, shares | 218,849 | ||
Granted, RSUs | 195,266 | ||
Vested, RSUs | (126,944) | ||
Forfeited, RSUs | (35,926) | ||
Nonvested at end of period, RSUs, shares | 251,245 | 218,849 | |
Weighted Average Grant Date Fair Value | |||
Nonvested at beginning of year, Weighted-average Grant-Date Fair Value | $ 16.29 | ||
Granted, Weighted-average Grant-Date Fair Value | 15.07 | ||
Converted, Weighted-average Grant-Date Fair Value | 15.19 | ||
Forfeited, Weighted-average Grant-Date Fair Value | 16.75 | ||
Nonvested at end of period, Weighted-average Grant-Date Fair Value | $ 15.81 | $ 16.29 |
Equity-Based Compensation - Sch
Equity-Based Compensation - Schedule of Performance-Based RSUs (Details 7) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2016 | Feb. 16, 2016 | Feb. 05, 2015 | Feb. 14, 2014 | |
Weighted Average Grant Date Fair Value | ||||||
End of year, Weighted-average Grant-Date Fair Value | $ 16.48 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number | 201,900 | |||||
Performance-Based RSUs | ||||||
Weighted Average Grant Date Fair Value | ||||||
Beginning of year, Weighted-average Grant-Date Fair Value | $ 15.14 | |||||
Granted, Weighted-average Grant-Date Fair Value | 13.56 | |||||
Converted, Weighted-average Grant-Date Fair Value | 11.82 | |||||
Forfeited, Weighted-average Grant-Date Fair Value | 15.86 | |||||
End of year, Weighted-average Grant-Date Fair Value | $ 15.14 | |||||
Target Based Vesting of Performance Based RSUs weighted average grant date fair value | $ 11.81 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number | 249,560 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 108,650 | |||||
Target based Vesting of performance-based restricted stock unit | 97,017 | |||||
Share Based Compensation Arrangement By Share Based Payment Award Non Option Equity Instruments Converted | (234,517) | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | (18,810) | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract] | ||||||
Weighted Average Remaining Contractual Term | 44 years 2 months 12 days | |||||
Aggregate intrinsic value, outstanding value | $ 4,523 | |||||
Shared Based Compensation Maximum Potential Awards | 403,800 | 8,000 | 185,680 | 124,000 | 86,120 | |
Target Units Outstanding | 201,900 | 4,000 | 92,840 | 62,000 | 43,060 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Financial Liability Measured at Fair Value on a Recurring Basis (Details 2) - Designated as Hedging Instrument - Cash Flow Hedge - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Interest Rate Swap | |||
Recurring financial liability that was measured at carrying value | |||
Interest rate swap - cash flow hedge | $ 768 | $ 1,020 | |
Interest rate swap - cash flow hedge, loss | $ 928 | (768) | |
Foreign currency hedges | |||
Recurring financial liability that was measured at carrying value | |||
Interest rate swap - cash flow hedge | 601 | 0 | |
Gain (Loss) on Foreign Currency Cash Flow Hedge Ineffectiveness | 18 | ||
Fair Value, Measurements, Recurring | Interest Rate Swap | |||
Recurring financial liability that was measured at carrying value | |||
Interest rate swap - cash flow hedge | 753 | (768) | |
Fair Value, Measurements, Recurring | Foreign currency hedges | |||
Recurring financial liability that was measured at carrying value | |||
Interest rate swap - cash flow hedge | (601) | ||
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Interest Rate Swap | |||
Recurring financial liability that was measured at carrying value | |||
Interest rate swap - cash flow hedge | 753 | ||
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Foreign currency hedges | |||
Recurring financial liability that was measured at carrying value | |||
Interest rate swap - cash flow hedge | $ (601) | ||
Fair Value, Measurements, Recurring | Estimate of Fair Value Measurement | Significant Other Observable Inputs (Level 2) | Interest Rate Swap | |||
Recurring financial liability that was measured at carrying value | |||
Interest rate swap - cash flow hedge | $ (768) |
Fair Value Measurements - Recon
Fair Value Measurements - Reconciliation of Recurring Financial Liability Related to Interest Rate Swaps (Details 3) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Reconciliation of the recurring financial liability related to interest rate swaps | |||
Derivative, Cash Received on Hedge | $ 54 | ||
Total gains/(losses) for the period: | |||
Gain (Loss) on Foreign Currency Derivatives Recorded in Earnings, Net | 36 | $ 0 | $ 0 |
Foreign currency hedges | Designated as Hedging Instrument | Cash Flow Hedge | |||
Reconciliation of the recurring financial liability related to interest rate swaps | |||
Beginning balance | 0 | ||
Total gains/(losses) for the period: | |||
Gain (Loss) on Foreign Currency Derivatives Recorded in Earnings, Net | (18) | ||
Included in other comprehensive earnings | (637) | ||
Ending balance | (601) | 0 | |
Interest Rate Swap | Designated as Hedging Instrument | Cash Flow Hedge | |||
Reconciliation of the recurring financial liability related to interest rate swaps | |||
Beginning balance | (768) | (1,020) | |
Total gains/(losses) for the period: | |||
Included in earnings | 928 | (768) | |
Included in other comprehensive earnings | 593 | (516) | |
Ending balance | $ (768) | $ (1,020) | |
Derivative Asset | $ (753) |
Income Taxes - Earnings Before
Income Taxes - Earnings Before Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Earnings before income taxes | |||
Earnings before income taxes | $ 57,245 | $ 12,261 | $ 39,348 |
U.S. | |||
Earnings before income taxes | |||
Earnings before income taxes | 25,746 | (141) | 19,205 |
Non-U.S. | |||
Earnings before income taxes | |||
Earnings before income taxes | $ 31,499 | $ 12,402 | $ 20,143 |
Income Taxes - Significant Comp
Income Taxes - Significant Components of Income Tax Provision/(Benefit) (Details 2) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Current: | |||
U.S. | $ (1,312) | $ 329 | $ 945 |
Non-U.S. | 13,729 | 12,482 | 6,981 |
Total Current | 12,417 | 12,811 | 7,926 |
Deferred: | |||
U.S. | 13,245 | (15,795) | 3,590 |
Non-U.S. | (2,797) | 8,291 | 1,310 |
Total Deferred | 10,448 | (7,504) | 4,900 |
Total provision for income taxes | $ 22,865 | $ 5,307 | $ 12,826 |
Income Taxes - Significant C112
Income Taxes - Significant Components of Deferred Tax Assets and Liabilities (Details 3) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Significant components of deferred tax assets and liabilities | ||
Post-retirement benefits | $ 1,798 | $ 1,837 |
Inventory reserves | 1,834 | 1,797 |
Loss carry-forwards | 7,279 | 9,387 |
Credit carry-forwards | 22,743 | 35,082 |
Nondeductible accruals | 11,629 | 12,406 |
Research expenditures | 31,380 | 30,465 |
Stock compensation | 2,681 | 2,070 |
Foreign exchange loss | 1,780 | 2,522 |
Other | 648 | 1,231 |
Gross deferred tax assets | 81,772 | 96,797 |
Depreciation and amortization | 9,960 | 9,814 |
Pensions | 16,024 | 11,868 |
Subsidiaries' unremitted earnings | 1,292 | 7,461 |
Gross deferred tax liabilities | 27,276 | 29,143 |
Net deferred tax assets | 54,496 | 67,654 |
Deferred tax asset valuation allowance | (11,024) | (10,266) |
Total net deferred tax assets | $ 43,472 | $ 57,388 |
Income Taxes - Current and Long
Income Taxes - Current and Long-Term Deferred Tax Assests and Liabilities (Details 4) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Income Tax Disclosure [Abstract] | ||
Non-current deferred tax assets | $ 45,839 | $ 63,809 |
Non-current deferred tax liabilities | (2,367) | (6,421) |
Total net deferred tax assets | 43,472 | 57,388 |
Total net deferred tax assets | $ 43,472 | $ 57,388 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details 5) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Taxes | |||
Deferred tax assets, operating loss carryforwards | $ 7,279,000 | $ 9,387,000 | |
Credit carry-forwards | 22,743,000 | 35,082,000 | |
Deferred tax asset valuation allowance | 11,024,000 | 10,266,000 | |
Foreign tax credit carry-forwards | 19,375,000 | ||
Research and development credits | 4,311,000 | ||
Foreign income tax expense | 13,729,000 | 12,482,000 | $ 6,981,000 |
Alternative minimum tax credit carry-forwards | 882,000 | ||
Income tax provision on foreign earnings to be permanently reinvested outside US | 0 | ||
Undistributed Earnings of Foreign Subsidiaries | 133,074,000 | ||
Unrecognized tax benefits | 12,347,000 | ||
Accrued for interest and penalties related to uncertain income tax | $ 1,772,000 | 1,206,000 | |
Maximum | |||
Income Taxes | |||
Open Tax Year | 2,008 | ||
Minimum | |||
Income Taxes | |||
Open Tax Year | 2,015 | ||
Non-U.S. | Income Tax Benefit | |||
Income Taxes | |||
Effects of change in accounting method | 16,305,000 | ||
Non-U.S. | Operating Carry Forward | |||
Income Taxes | |||
Effects of change in accounting method | (8,214,000) | ||
Non-U.S. | Foreign Tax Credit Carryforward | |||
Income Taxes | |||
Effects of change in accounting method | 24,519,000 | ||
China | |||
Income Taxes | |||
Tax expense relating to earnings not indefinitely reinvested outside US | $ 7,461,000 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Effective Income Taxes Rate (Details 6) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Reconciliation of effective income taxes rate | |||
Taxes at the U.S. statutory rate | 35.00% | 35.00% | 35.00% |
State income taxes, net of federal income tax benefit | 1.40% | (0.10%) | 0.70% |
Non-U.S. income taxed at rates different than the U.S. statutory rate | (7.50%) | (16.70%) | (7.60%) |
Foreign source income, net of associated foreign tax credits | 5.30% | 6.90% | 3.50% |
Benefit of tax credits | (1.00%) | (4.60%) | (1.30%) |
Non-deductible expenses | 0.70% | 1.30% | 2.80% |
Adjustment to valuation allowances | 3.80% | 37.80% | (0.40%) |
Benefit from prior period foreign tax credits | (0.00%) | (133.00%) | (0.00%) |
Change in unrecognized tax benefits | 3.30% | 59.50% | 0.00% |
Impacts of unremitted foreign earnings | 0.60% | 60.80% | 0.00% |
Other | (1.70%) | (3.60%) | (0.10%) |
Effective income tax rate | 39.90% | 43.30% | 32.60% |
Income Taxes - Reconciliatio116
Income Taxes - Reconciliation of Unrecognized Tax Benefits (Details 7) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | ||
Income Tax Provision For Undistributed Earnings Of Foreign Subsidiaries | $ 0 | |
Reconciliation of the unrecognized tax benefits | ||
Unrecognized tax benefits, beginning balance | 11,008 | $ 3,890 |
Increase related to current year tax positions | 1,088 | 1,406 |
Increase related to prior year tax positions | 251 | 5,728 |
Decrease as a result of lapse of statute of limitations | 0 | (16) |
Unrecognized tax benefits, ending balance | $ 12,347 | $ 11,008 |
Business Acquisitions - Narrati
Business Acquisitions - Narratives (Details) - USD ($) $ / shares in Units, $ in Thousands | Mar. 11, 2016 | Oct. 28, 2015 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 27, 2015 | Jun. 28, 2015 | Mar. 29, 2015 | Dec. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Business Acquisition | ||||||||||||||
Cost of goods sold | $ 256,251 | $ 255,201 | $ 274,058 | |||||||||||
Net Income (Loss) Attributable to Parent | $ 8,310 | $ 3,720 | $ 14,487 | $ 7,863 | $ (13,653) | $ (4,760) | $ 19,080 | $ 6,287 | 34,380 | 6,954 | $ 26,522 | |||
Minimum | ||||||||||||||
Business Acquisition | ||||||||||||||
Projected market value | 150,000 | $ 150,000 | 150,000 | |||||||||||
Maximum | ||||||||||||||
Business Acquisition | ||||||||||||||
Projected market value | $ 300,000 | 300,000 | 300,000 | |||||||||||
CTG Advanced Materials, LLC [Member] | ||||||||||||||
Business Acquisition | ||||||||||||||
Business Acquisition, Pro Forma Revenue | 398,990 | 395,495 | ||||||||||||
Business Combination, Acquisition Related Costs | 804 | |||||||||||||
Cost of goods sold | 1,151 | |||||||||||||
Business Acquisition, Pro Forma Net Income (Loss) | $ 34,321 | $ 8,800 | ||||||||||||
Revenues | 12,299 | |||||||||||||
Business Acquisition, Transaction Costs | $ 804 | |||||||||||||
Total cash purchase price | $ 73,063 | |||||||||||||
Net Income (Loss) Attributable to Parent | $ 1,357 | |||||||||||||
Business Acquisition, Pro Forma Earnings Per Share, Basic | $ 1.05 | $ 0.27 | ||||||||||||
Business Acquisition, Pro Forma Earnings Per Share, Diluted | $ 1.03 | $ 0.26 | ||||||||||||
Filter Sensing Technologies Inc. | ||||||||||||||
Business Acquisition | ||||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net | $ 1,205 | |||||||||||||
Total cash purchase price | 1,855 | |||||||||||||
Fair value of contingent consideration | $ 1,550 |
Business Acquisitions - Net Ass
Business Acquisitions - Net Assets Acquired (Details) - USD ($) $ in Thousands | Mar. 11, 2016 | Oct. 28, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Business Combination, Recognized Identifiable Assets Acquired, Goodwill and Liabilities Assumed, Net | |||||
Goodwill | $ 61,744 | $ 33,865 | $ 32,047 | ||
Filter Sensing Technologies Inc. | |||||
Business Combinations - Schedule of Finite-Lived Intangible Assets [Abstract] | |||||
Business Acquisition, Goodwill, Expected Tax Deductible Amount | $ 0 | ||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill and Liabilities Assumed, Net | |||||
Current assets | 555 | ||||
Property, plant and equipment | 29 | ||||
Goodwill | 1,818 | ||||
In-process research and development intangible asset | 2,200 | ||||
Other assets | 8 | ||||
Fair value of assets acquired | 4,610 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net | 1,205 | ||||
Less fair value of liabilities acquired | (1,855) | ||||
Less fair value of contingent consideration | $ (1,550) | ||||
CTG Advanced Materials, LLC [Member] | |||||
Business Combinations - Schedule of Finite-Lived Intangible Assets [Abstract] | |||||
Business Acquisition, Goodwill, Expected Tax Deductible Amount | $ 27,879 | ||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill and Liabilities Assumed, Net | |||||
Current assets | 4,215 | ||||
Property, plant and equipment | 6,173 | ||||
Goodwill | 27,879 | ||||
Acquired Finite-lived Intangible Asset, Residual Value | 35,427 | ||||
Other assets | 37 | ||||
Fair value of assets acquired | 73,731 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities | (668) | ||||
Less fair value of liabilities acquired | (73,063) | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Cash and Equivalents | $ 4 |
Geographic Data - Schedule of F
Geographic Data - Schedule of Financial Information by Geographic Area (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 27, 2015 | Jun. 28, 2015 | Mar. 29, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Net Sales from continuing operations | |||||||||||
Net sales | $ 101,584 | $ 99,697 | $ 98,693 | $ 96,705 | $ 93,282 | $ 90,646 | $ 100,071 | $ 98,311 | $ 396,679 | $ 382,310 | $ 404,021 |
United States | Operating Segments | |||||||||||
Net Sales from continuing operations | |||||||||||
Net sales | 276,033 | 238,796 | 234,323 | ||||||||
Singapore | Operating Segments | |||||||||||
Net Sales from continuing operations | |||||||||||
Net sales | 6,668 | 8,379 | 11,510 | ||||||||
China | Operating Segments | |||||||||||
Net Sales from continuing operations | |||||||||||
Net sales | 59,506 | 55,825 | 61,683 | ||||||||
Canada | Operating Segments | |||||||||||
Net Sales from continuing operations | |||||||||||
Net sales | 0 | 24,519 | 35,145 | ||||||||
Czech Republic | Operating Segments | |||||||||||
Net Sales from continuing operations | |||||||||||
Net sales | 34,767 | 36,348 | 44,424 | ||||||||
Other non-U.S. | Operating Segments | |||||||||||
Net Sales from continuing operations | |||||||||||
Net sales | $ 19,705 | $ 18,443 | $ 16,936 |
Geographic Data - Schedule of R
Geographic Data - Schedule of Revenue by Geographic Areas (Details 2) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Long-Lived Assets | ||
Long-lived assets | $ 82,111 | $ 69,872 |
United States | Operating Segments | ||
Long-Lived Assets | ||
Long-lived assets | 42,488 | 32,239 |
China | Operating Segments | ||
Long-Lived Assets | ||
Long-lived assets | 33,013 | 30,937 |
United Kingdom | Operating Segments | ||
Long-Lived Assets | ||
Long-lived assets | 569 | 1,042 |
Taiwan | Operating Segments | ||
Long-Lived Assets | ||
Long-lived assets | 2,755 | 2,694 |
Czech Republic | Operating Segments | ||
Long-Lived Assets | ||
Long-lived assets | 2,634 | 2,029 |
Other non-U.S | Operating Segments | ||
Long-Lived Assets | ||
Long-lived assets | $ 652 | $ 931 |
Quarterly Financial Data - Quar
Quarterly Financial Data - Quarterly Results of Operations (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 27, 2015 | Jun. 28, 2015 | Mar. 29, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Selected Quarterly Financial Information | |||||||||||
Net sales | $ 101,584 | $ 99,697 | $ 98,693 | $ 96,705 | $ 93,282 | $ 90,646 | $ 100,071 | $ 98,311 | $ 396,679 | $ 382,310 | $ 404,021 |
Gross margin | 35,861 | 36,641 | 34,457 | 33,468 | 30,154 | 31,446 | 33,373 | 32,136 | 140,428 | 127,109 | 129,963 |
Operating earnings | 14,146 | 12,490 | 24,097 | 12,433 | 931 | (3,850) | 10,544 | 10,488 | 63,166 | 18,113 | 42,323 |
Net (loss) earnings | $ 8,310 | $ 3,720 | $ 14,487 | $ 7,863 | $ (13,653) | $ (4,760) | $ 19,080 | $ 6,287 | $ 34,380 | $ 6,954 | $ 26,522 |
Basic earnings per share (usd per share) | $ 0.25 | $ 0.11 | $ 0.44 | $ 0.24 | $ (0.42) | $ (0.15) | $ 0.58 | $ 0.19 | $ 1.05 | $ 0.21 | $ 0.79 |
Diluted earnings per share (usd per share) | $ 0.25 | $ 0.11 | $ 0.44 | $ 0.24 | $ (0.42) | $ (0.15) | $ 0.57 | $ 0.19 | $ 1.03 | $ 0.21 | $ 0.78 |
Schedule II - Valuation and 122
Schedule II - Valuation and Qualifying Accounts (Details) - Allowance for Doubtful Accounts - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Valuation and Qualifying Accounts | |||
Balance at Beginning of Period | $ 133 | $ 100 | $ 130 |
Charged/ (Credit) to Expense | (44) | (33) | (38) |
Charged to Other Accounts | 0 | 0 | 0 |
Deductions | (7) | 0 | 8 |
Balance at End of Period | $ 170 | $ 133 | $ 100 |