Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2024 | Jul. 23, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2024 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q2 | |
Entity Central Index Key | 0000026058 | |
Document Transition Report | false | |
Entity File Number | 1-4639 | |
Entity Registrant Name | CTS CORPORATION | |
Entity Incorporation, State or Country Code | IN | |
Entity Tax Identification Number | 35-0225010 | |
Entity Address, Address Line One | 4925 Indiana Avenue | |
Entity Address, City or Town | Lisle | |
Entity Address, State or Province | IL | |
Entity Address, Postal Zip Code | 60532 | |
City Area Code | 630 | |
Local Phone Number | 577-8800 | |
Title of Each Class | Common stock, without par value | |
Trading Symbol | CTS | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 30,365,139 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS - UNAUDITED - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Income Statement [Abstract] | ||||
Net sales | $ 130,162 | $ 145,182 | $ 255,912 | $ 291,176 |
Cost of goods sold | 83,790 | 94,440 | 164,450 | 188,782 |
Gross margin | 46,372 | 50,742 | 91,462 | 102,394 |
Selling, general and administrative expenses | 21,332 | 23,694 | 43,591 | 45,673 |
Research and development expenses | 6,086 | 6,721 | 12,687 | 13,307 |
Restructuring charges | 1,190 | 1,895 | 2,884 | 2,807 |
Operating earnings | 17,764 | 18,432 | 32,300 | 40,607 |
Other income (expense): | ||||
Interest expense | (833) | (818) | (1,635) | (1,512) |
Interest income | 1,441 | 1,072 | 2,827 | 2,135 |
Other expense, net | (603) | (2,606) | (2,066) | (2,441) |
Total other income (expense), net | 5 | (2,352) | (874) | (1,818) |
Earnings before income taxes | 17,769 | 16,080 | 31,426 | 38,789 |
Income tax expense | 3,062 | 3,183 | 5,600 | 7,548 |
Net earnings | $ 14,707 | $ 12,897 | $ 25,826 | $ 31,241 |
Earnings per share: | ||||
Basic | $ 0.48 | $ 0.41 | $ 0.84 | $ 0.99 |
Diluted | $ 0.48 | $ 0.41 | $ 0.84 | $ 0.98 |
Basic weighted – average common shares outstanding: | 30,511 | 31,488 | 30,627 | 31,560 |
Effect of dilutive securities | 219 | 197 | 224 | 224 |
Diluted weighted – average common shares outstanding: | 30,730 | 31,685 | 30,851 | 31,784 |
Cash dividends declared per share | $ 0.04 | $ 0.04 | $ 0.08 | $ 0.08 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS - UNAUDITED - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Statement of Comprehensive Income [Abstract] | ||||
Net earnings | $ 14,707 | $ 12,897 | $ 25,826 | $ 31,241 |
Other comprehensive earnings (loss): | ||||
Changes in fair market value of derivatives, net of tax | (1,675) | 830 | (944) | 1,209 |
Changes in unrealized pension cost, net of tax | 35 | 4 | 99 | (30) |
Cumulative translation adjustment, net of tax | (523) | 2,159 | (2,644) | 3,183 |
Other comprehensive (loss) earnings | (2,163) | 2,993 | (3,489) | 4,362 |
Comprehensive earnings | $ 12,544 | $ 15,890 | $ 22,337 | $ 35,603 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Current Assets | ||
Cash and cash equivalents | $ 161,246 | $ 163,876 |
Accounts receivable, net | 85,380 | 78,569 |
Inventories, net | 51,670 | 60,031 |
Other current assets | 16,566 | 16,873 |
Total current assets | 314,862 | 319,349 |
Property, plant and equipment, net | 91,759 | 92,592 |
Operating lease assets, net | 24,181 | 26,425 |
Other Assets | ||
Goodwill | 156,061 | 157,638 |
Other intangible assets, net | 96,827 | 103,957 |
Deferred income taxes | 26,619 | 25,183 |
Other | 15,313 | 16,023 |
Total other assets | 294,820 | 302,801 |
Total Assets | 725,622 | 741,167 |
Current Liabilities | ||
Accounts payable | 40,864 | 43,499 |
Operating lease obligations | 4,371 | 4,394 |
Accrued payroll and benefits | 15,286 | 14,585 |
Accrued expenses and other liabilities | 31,926 | 34,561 |
Total current liabilities | 92,447 | 97,039 |
Long-term debt | 65,000 | 67,500 |
Long-term operating lease obligations | 22,741 | 24,965 |
Long-term pension obligations | 4,583 | 4,655 |
Deferred income taxes | 14,314 | 14,729 |
Other long-term obligations | 3,786 | 5,457 |
Total Liabilities | 202,871 | 214,345 |
Commitments and Contingencies (Note 11) | ||
Shareholders’ Equity | ||
Common stock | 321,894 | 319,269 |
Additional contributed capital | 41,586 | 45,097 |
Retained earnings | 625,614 | 602,232 |
Accumulated other comprehensive income (loss) | 775 | 4,264 |
Total shareholders’ equity before treasury stock | 989,869 | 970,862 |
Treasury stock | (467,118) | (444,040) |
Total shareholders’ equity | 522,751 | 526,822 |
Total Liabilities and Shareholders’ Equity | $ 725,622 | $ 741,167 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - UNAUDITED - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net earnings | $ 25,826 | $ 31,241 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||
Depreciation and amortization | 14,651 | 14,175 |
Pension and other post-retirement plan expense | 171 | 61 |
Stock-based compensation | 2,544 | 3,235 |
Asset impairment charges | 0 | 1,324 |
Deferred income taxes | (1,236) | (553) |
Change in fair value of contingent consideration liability | (572) | |
(Loss) gain on foreign currency hedges, net of cash | (278) | 228 |
Changes in assets and liabilities, net of acquisitions: | ||
Accounts receivable | (7,884) | (6,737) |
Inventories | 7,665 | (349) |
Operating lease assets | 2,244 | (3,066) |
Other assets | 25 | (599) |
Accounts payable | (2,048) | 1,004 |
Accrued payroll and benefits | 899 | (6,423) |
Operating lease liabilities | (2,248) | 3,136 |
Accrued expenses and other liabilities | (1,736) | (2,017) |
Pension and other post-retirement plans | (83) | (53) |
Net cash provided by operating activities | 37,940 | 34,607 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Capital expenditures | (8,672) | (8,487) |
Payments for acquisitions, net of cash acquired | (3,359) | |
Net cash used in investing activities | (8,672) | (11,846) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Payments of long-term debt | (335,000) | (249,732) |
Proceeds from borrowings of long-term debt | 332,500 | 243,102 |
Purchases of treasury stock | (22,892) | (17,562) |
Dividends paid | (2,460) | (2,535) |
Payments of contingent consideration | (1,076) | |
Taxes paid on behalf of equity award participants | (3,131) | (3,240) |
Net cash (used in) provided by financing activities | (32,059) | (29,967) |
Effect of exchange rate changes on cash and cash equivalents | 161 | 1,174 |
Net decrease in cash and cash equivalents | (2,630) | (6,032) |
Cash and cash equivalents at beginning of period | 163,876 | 156,910 |
Cash and cash equivalents at end of period | 161,246 | 150,878 |
Supplemental cash flow information: | ||
Cash paid for interest | 1,554 | 1,720 |
Cash paid for income taxes, net | 8,064 | 9,732 |
Capital expenditures incurred but not paid | 1,943 | $ 1,565 |
Excise taxes on purchase of treasury stock incurred not paid | $ 460 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - UNAUDITED - USD ($) $ in Thousands | Total | Common Stock | Additional Contributed Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock |
Beginning Balance at Dec. 31, 2022 | $ 506,224 | $ 316,803 | $ 46,144 | $ 546,703 | $ (671) | $ (402,755) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net earnings | 18,344 | 18,344 | ||||
Changes in fair market value of derivatives, net of tax | 379 | 379 | ||||
Changes in unrealized pension cost, net of tax | (34) | (34) | ||||
Cumulative translation adjustment, net of tax | 1,024 | 1,024 | ||||
Cash dividends | (1,260) | (1,260) | ||||
Acquired shares for treasury stock | (8,802) | (8,802) | ||||
Issued shares on vesting of restricted stock units | (3,143) | 1,982 | (5,125) | |||
Stock compensation | 1,404 | 1,404 | ||||
Ending Balance at Mar. 31, 2023 | 514,136 | 318,785 | 42,423 | 563,787 | 698 | (411,557) |
Beginning Balance at Dec. 31, 2022 | 506,224 | 316,803 | 46,144 | 546,703 | (671) | (402,755) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net earnings | 31,241 | |||||
Changes in fair market value of derivatives, net of tax | 1,209 | |||||
Changes in unrealized pension cost, net of tax | (30) | |||||
Cumulative translation adjustment, net of tax | 3,183 | |||||
Ending Balance at Jun. 30, 2023 | 521,395 | 319,111 | 43,488 | 575,422 | 3,691 | (420,317) |
Beginning Balance at Mar. 31, 2023 | 514,136 | 318,785 | 42,423 | 563,787 | 698 | (411,557) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net earnings | 12,897 | 12,897 | ||||
Changes in fair market value of derivatives, net of tax | 830 | 830 | ||||
Changes in unrealized pension cost, net of tax | 4 | 4 | ||||
Cumulative translation adjustment, net of tax | 2,159 | 2,159 | ||||
Cash dividends | (1,262) | (1,262) | ||||
Acquired shares for treasury stock | (8,760) | (8,760) | ||||
Issued shares on vesting of restricted stock units | (97) | 326 | (423) | |||
Stock compensation | 1,488 | 1,488 | ||||
Ending Balance at Jun. 30, 2023 | 521,395 | 319,111 | 43,488 | 575,422 | 3,691 | (420,317) |
Beginning Balance at Dec. 31, 2023 | 526,822 | 319,269 | 45,097 | 602,232 | 4,264 | (444,040) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net earnings | 11,119 | 11,119 | ||||
Changes in fair market value of derivatives, net of tax | 730 | 730 | ||||
Changes in unrealized pension cost, net of tax | 65 | 65 | ||||
Cumulative translation adjustment, net of tax | (2,121) | (2,121) | ||||
Cash dividends | (1,227) | (1,227) | ||||
Acquired shares for treasury stock | (12,035) | (12,035) | ||||
Issued shares on vesting of restricted stock units | (3,116) | 2,589 | (5,705) | |||
Stock compensation | 1,048 | 1,048 | ||||
Ending Balance at Mar. 31, 2024 | 521,285 | 321,858 | 40,440 | 612,124 | 2,938 | (456,075) |
Beginning Balance at Dec. 31, 2023 | 526,822 | 319,269 | 45,097 | 602,232 | 4,264 | (444,040) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net earnings | 25,826 | |||||
Changes in fair market value of derivatives, net of tax | (944) | |||||
Changes in unrealized pension cost, net of tax | 99 | |||||
Cumulative translation adjustment, net of tax | (2,644) | |||||
Ending Balance at Jun. 30, 2024 | 522,751 | 321,894 | 41,586 | 625,614 | 775 | (467,118) |
Beginning Balance at Mar. 31, 2024 | 521,285 | 321,858 | 40,440 | 612,124 | 2,938 | (456,075) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net earnings | 14,707 | 14,707 | ||||
Changes in fair market value of derivatives, net of tax | (1,675) | (1,675) | ||||
Changes in unrealized pension cost, net of tax | 35 | 35 | ||||
Cumulative translation adjustment, net of tax | (523) | (523) | ||||
Cash dividends | (1,217) | (1,217) | ||||
Acquired shares for treasury stock | (11,043) | (11,043) | ||||
Issued shares on vesting of restricted stock units | (13) | 36 | (49) | |||
Stock compensation | 1,195 | 1,195 | ||||
Ending Balance at Jun. 30, 2024 | $ 522,751 | $ 321,894 | $ 41,586 | $ 625,614 | $ 775 | $ (467,118) |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - UNAUDITED (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Statement of Stockholders' Equity [Abstract] | ||||||
Cash dividends declared per share | $ 0.04 | $ 0.04 | $ 0.04 | $ 0.04 | $ 0.08 | $ 0.08 |
Treasury stock, shares, acquired | 228,000 | 271,939 | 197,716 | 198,271 | 499,939 | 395,987 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Pay vs Performance Disclosure | ||||||
Net Income (Loss) | $ 14,707 | $ 11,119 | $ 12,897 | $ 18,344 | $ 25,826 | $ 31,241 |
Insider Trading Arrangements
Insider Trading Arrangements | 6 Months Ended |
Jun. 30, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Rule 10b5-1 Arrangement Modified | false |
Non-Rule 10b5-1 Arrangement Modified | false |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Basis of Presentation | NOTE 1 — Basis of Presentation The accompanying condensed consolidated financial statements have been prepared by CTS Corporation (“CTS”, “we”, “our”, “us” or the “Company”), without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been omitted pursuant to such rules and regulations. The unaudited condensed consolidated financial statements should be read in conjunction with the financial statements, notes thereto, and other information included in the Company’s Annual Report on Form 10‑K for the year ended December 31, 2023. The accompanying unaudited condensed consolidated financial statements reflect, in the opinion of management, all adjustments (consisting of normal recurring items) necessary for a fair statement, in all material respects, of the financial position and results of operations for the periods presented. The preparation of financial statements in conformity with generally accepted accounting principles 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 reported period. Actual results could differ materially from those estimates. The results of operations for the interim periods are not necessarily indicative of the results for the entire year. There have been no material changes in the Company’s significant accounting policies as compared to the significant accounting policies described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023. Recently issued accounting pronouncements not yet adopted ASU No. 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosure” In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which requires public entities to disclose information about their reportable segments' significant expenses and other segment items on an interim and annual basis. Public entities with a single reportable segment are required to apply the disclosure requirements in ASU 2023-07, as well as existing segment disclosures and reconciliation required under ASC 280 on an interim and annual basis. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and for the interim periods beginning after December 15, 2024, with early adoption permitted. The Company is currently evaluating the impact of adopting ASU 2023-07. ASU No. 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures” In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures , which requires public entities, on an annual basis, to provide disclosure of specific categories in the reconciliation of the effective tax rate, as well as disclosure of income taxes paid, disaggregated by jurisdiction. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024, with early adoption permitted. The Company is currently evaluating the impact of adopting ASU 2023-09. |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Jun. 30, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | NOTE 2 – Revenue Recognition The core principle of Accounting Standard Codification (“ASC”) (Topic 606) Revenue from Contracts with Customers 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. The guidance provides a five-step process to achieve that core principle: • Identify the contract(s) with a customer • Identify the performance obligations • Determine the transaction price • Allocate the transaction price • Recognize revenue when the performance obligations are met We recognize revenue when the performance obligations specified in our contracts have been satisfied, after considering the impact of variable consideration and other factors that may affect the transaction price. Our contracts normally contain a single performance obligation that is fulfilled on the date of delivery or shipment based on shipping terms stipulated in the contract. We usually expect payment within 30 to 90 days from the shipping date, depending on our terms with the customer. None of our contracts as of June 30, 2024 contained a significant financing component. Differences between the amount of revenue recognized and the amount invoiced, collected from, or paid to our customers are recognized as contract assets or liabilities. Contract assets will be reviewed for impairment when events or circumstances indicate that they may not be recoverable. To the extent the transaction price includes variable consideration, we estimate the amount of variable consideration that should be included in the transaction price utilizing the most likely amount method based on an analysis of historical experience and current facts and circumstances, which requires significant judgment. Variable consideration is included in the transaction price if, in our judgment, it is probable that a significant future reversal of cumulative revenue under the contract will not occur. Disaggregated Revenue The following table presents revenues disaggregated by the major markets we serve: Three months ended Six months ended June 30, 2024 June 30, 2023 June 30, 2024 June 30, 2023 Transportation $ 64,221 $ 82,021 $ 130,738 $ 156,310 Industrial 32,175 34,082 63,238 74,331 Medical 17,832 17,083 34,733 34,115 Aerospace & Defense 15,934 11,996 27,203 26,420 Total $ 130,162 $ 145,182 $ 255,912 $ 291,176 The end-market sales for 2023 were adjusted by immaterial amounts to align the classification of certain customers in connection with our most recent acquisitions with our enterprise-level end market information. |
Business Acquisitions
Business Acquisitions | 6 Months Ended |
Jun. 30, 2024 | |
Business Combinations [Abstract] | |
Business Acquisitions | NOTE 3 – Business Acquisitions Maglab AG Acquisition On February 6, 2023, we acquired 100 % of the outstanding shares of Maglab AG (“Maglab”). Maglab has deep expertise in magnetic system design and current measurement solutions for use in e-mobility, industrial automation, and renewable energy applications. Maglab's domain expertise coupled with CTS’ commercial, technical and operational capabilities position us to advance our status as a recognized innovator in electric motor sensing and controls markets. The final purchase price of $ 7,717 has been allocated to the fair values of assets and liabilities acquired as of February 6, 2023. The purchase price was increased by $ 3 for the final settlement of net working capital during the second quarter of 2023. The following table summarizes the final purchase price, the fair values of the assets acquired, and the liabilities assumed as of the date of acquisition: Consideration Paid Cash paid, net of cash acquired of $ 14 $ 4,153 Contingent consideration 3,564 Purchase price $ 7,717 Fair Values at Accounts receivable $ 348 Inventory 43 Other current assets 41 Property, plant and equipment 35 Goodwill 4,997 Intangible assets 2,860 Fair value of assets acquired 8,324 Less fair value of liabilities acquired ( 607 ) Purchase price $ 7,717 Goodwill represents value the Company expects to be created by combining the operations of the acquired business with the Company's operations, including the expansion of customer relationships, access to new customers, and potential cost savings and synergies. Goodwill related to the 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 Weighted Customer lists/relationships $ 2,800 13.0 Technology and other intangibles 60 3.0 Total $ 2,860 All contingent consideration is payable in cash and is based on success factors related to the integration process as well as upon the achievement of annual revenue and customer order targets through the fiscal year ending December 31, 2025. The Company recorded $ 3,564 as the acquisition date fair value of the contingent consideration based on the estimate of the probability of achieving the performance targets. This amount is also reflected as an addition to the purchase price. The contingent consideration has a maximum payout of $ 6,300 . Supplemental pro forma disclosures are not included as the amounts are deemed to be immaterial. SyQwest, LLC Acquisition On July 29, 2024, we acquired substantially all of the assets of SyQwest, LLC (“SyQwest”), a leading designer and manufacturer of a broad set of sonar and acoustic sensing solutions primarily for naval applications, for $ 125 million, net of cash and debt and up to $15 million in future contingent consideration. The SyQwest acquisition will strengthen our strategy and scale in the defense end market. |
Accounts Receivable, Net
Accounts Receivable, Net | 6 Months Ended |
Jun. 30, 2024 | |
Receivables [Abstract] | |
Accounts Receivable, Net | NOTE 4 – Accounts Receivable, net The components of accounts receivable, net are as follows: As of June 30, December 31, 2024 2023 Accounts receivable, gross $ 86,092 $ 79,500 Less: Allowance for credit losses ( 712 ) ( 931 ) Accounts receivable, net $ 85,380 $ 78,569 |
Inventories, Net
Inventories, Net | 6 Months Ended |
Jun. 30, 2024 | |
Inventory Disclosure [Abstract] | |
Inventories, Net | NOTE 5 – Inventories, net Inventories, net consists of the following: As of June 30, December 31, 2024 2023 Finished goods $ 13,645 $ 20,279 Work-in-process 20,628 19,213 Raw materials 32,232 33,187 Less: Inventory reserves ( 14,835 ) ( 12,648 ) Inventories, net $ 51,670 $ 60,031 |
Property, Plant and Equipment,
Property, Plant and Equipment, Net | 6 Months Ended |
Jun. 30, 2024 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment, Net | NOTE 6 – Property, Plant and Equipment, net Property, plant and equipment, net is comprised of the following: As of June 30, December 31, 2024 2023 Land and land improvements $ 536 $ 536 Buildings and improvements 74,178 74,188 Machinery and equipment 265,155 261,435 Less: Accumulated depreciation ( 248,110 ) ( 243,567 ) Property, plant and equipment, net $ 91,759 $ 92,592 Depreciation expense for the three months ended June 30, 2024 and June 30, 2023 was $ 4,518 and $ 4,400 , respectively. Depreciation expense for the six months ended June 30, 2024 and June 30, 2023 was $ 9,018 and $ 8,807 , respectively. |
Retirement Plans
Retirement Plans | 6 Months Ended |
Jun. 30, 2024 | |
Retirement Benefits [Abstract] | |
Retirement Plans | NOTE 7 – Retirement Plans Pension Plans Net pension expense for our domestic and foreign plans included in other expense, net in the Condensed Consolidated Statements of Earnings is as follows: Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, 2024 2023 2024 2023 Net pension expense $ 54 $ 66 $ 106 $ 133 The components of net pension expense for our domestic and foreign plans include the following: Domestic Pension Plans Foreign Pension Plans Three Months Ended Three Months Ended June 30, June 30, June 30, June 30, 2024 2023 2024 2023 Service cost $ — $ — $ 4 $ 5 Interest cost 9 10 6 9 Expected return on plan assets (1) — — ( 5 ) ( 6 ) Amortization of loss 6 5 34 43 Total expense, net $ 15 $ 15 $ 39 $ 51 (1) Expected return on plan assets is net of expected investment expenses and certain administrative expenses. Domestic Pension Plans Foreign Pension Plans Six Months Ended Six Months Ended June 30, June 30, June 30, June 30, 2024 2023 2024 2023 Service cost $ — $ — $ 7 $ 11 Interest cost 18 19 12 19 Expected return on plan assets (1) — — ( 10 ) ( 13 ) Amortization of loss 12 11 67 86 Total expense, net $ 30 $ 30 $ 76 $ 103 (1) Expected return on plan assets is net of expected investment expenses and certain administrative expenses. Other Post-retirement Benefit Plan Net post-retirement expense for our other post-retirement plan includes the following components: Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, 2024 2023 2024 2023 Service cost $ — $ — $ — $ — Interest cost 48 48 96 96 Amortization of gain ( 16 ) ( 84 ) ( 31 ) ( 168 ) Total expense (income), net $ 32 $ ( 36 ) $ 65 $ ( 72 ) |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 6 Months Ended |
Jun. 30, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | NOTE 8 – Goodwill and Other Intangible Assets Goodwill Changes in the net carrying amount of goodwill were as follows: Total Goodwill as of December 31, 2023 $ 157,638 Foreign exchange impact ( 1,577 ) Goodwill as of June 30, 2024 $ 156,061 Other Intangible Assets Other intangible assets, net consist of the following components: As of June 30, 2024 Gross Accumulated Net Amount Customer lists/relationships $ 143,337 $ ( 66,956 ) $ 76,381 Technology and other intangibles 53,855 ( 33,409 ) 20,446 Other intangible assets, net $ 197,192 $ ( 100,365 ) $ 96,827 As of December 31, 2023 Gross Accumulated Net Amount Customer lists/relationships $ 144,671 $ ( 63,006 ) $ 81,665 Technology and other intangibles 54,052 ( 31,760 ) 22,292 Other intangible assets, net $ 198,723 $ ( 94,766 ) $ 103,957 Amortization expense for the three months ended June 30, 2024 and June 30, 2023 was $ 2,807 and $ 2,857 , respectively. Amortization expense for the six months ended June 30, 2024 and June 30, 2023 was $ 5,633 and $ 5,368 , respectively. The changes in the gross carrying amounts of intangible assets are due to foreign exchange impacts in the quarter. Future amortization expense for other intangible assets as of June 30, 2024 is as follows: Amortization Remaining 2024 $ 5,476 2025 10,613 2026 10,458 2027 10,399 2028 10,364 Thereafter 49,517 Total amortization expense $ 96,827 |
Costs Associated with Exit and
Costs Associated with Exit and Restructuring Activities | 6 Months Ended |
Jun. 30, 2024 | |
Restructuring and Related Activities [Abstract] | |
Costs Associated with Exit and Restructuring Activities | NOTE 9 – Costs Associated with Exit and Restructuring Activities Restructuring charges are reported as a separate line within operating earnings in the Condensed Consolidated Statements of Earnings. Total restructuring charges are as follows: Three Months Ended June 30, 2024 June 30, 2023 Restructuring charges $ 1,190 $ 1,895 Six Months Ended June 30, 2024 June 30, 2023 Restructuring charges $ 2,884 $ 2,807 September 2020 Plan In September 2020, we initiated a restructuring plan focused on optimizing our manufacturing footprint and improving operational efficiency by better utilizing our systems capabilities (the “September 2020 Plan”). This plan includes transitioning certain administrative functions to a shared service center, realignment of manufacturing locations, and certain other efficiency improvement actions. The restructuring cost of the September 2020 Plan is estimated to be in the range of $ 4,100 to $ 4,200 , including workforce reduction charges, building and equipment relocation charges and other contract and asset-related costs. We have incurred $ 4,024 in program costs to date. During the three months ended June 30, 2024, we recorded $ 112 in restructuring charges comprised of building and equipment relocation charges. During the six months ended June 30, 2024, we recorded $ 128 in restructuring charges, comprised of $ 7 and $ 121 in workforce reduction and building and equipment relocation charges, respectively. The total restructuring liability associated with these actions was $ 100 as of June 30, 2024. The total restructuring liability associated with these actions was $ 83 as of December 31, 2023. Closure and Consolidation of Juarez Manufacturing Facility and Operations During the first quarter of 2023, we announced the shutdown of our Juarez manufacturing facility. As a part of this activity, operations from the Juarez plant are being consolidated into our expanded Matamoros facility (collectively, the “Matamoros Consolidation”). The Matamoros Consolidation is substantially complete as of June 30, 2024 with remaining activity expected to be completed later this year. The total restructuring cost of the Matamoros Consolidation is now estimated to be in the range of $ 5,100 and $ 5,500 , including workforce reduction charges, building and equipment relocation charges and other contract and asset-related costs. The total restructuring costs incurred as part of the Matamoros Consolidation are $ 5,009 to date. During the three months ended June 30, 2024, we incurred $ 322 in restructuring charges associated with the Matamoros Consolidation, comprised of $ 55 , $ 135 , and $ 132 in workforce reduction, building and equipment relocation costs and asset impairment and other charges, respectively. During the six months ended June 30, 2024, we incurred $ 1,310 in restructuring costs associated with the Matamoros Consolidation, comprised of $ 270 , $ 885 , and $ 155 in workforce reduction, building and equipment relocation costs and asset impairment and other charges, respectively. The restructuring liability associated with the Matamoros Consolidation was $ 54 and $ 194 as of June 30, 2024 and December 31, 2023, respectively. In addition to these charges, we have incurred an additional $ 1,268 of other costs relating to the Matamoros Consolidation that would not qualify as restructuring charges, but represent duplicative expenses arising from the transition process, such as excess rent, utilities, personnel-related expenses and other costs. This includes $ 217 in the second quarter and $ 697 in the first six months of 2024 with the remaining incurred in the 2nd half of 2023. Other Restructuring Activities During the three month period ended June 30, 2024, we incurred total other restructuring charges of $ 757 , comprised of $ 690 and $ 66 in workforce reduction and asset impairment and other charges, respectively. During the six month period ended June 30, 2024, we incurred total other restructuring charges of $ 1,477 , comprised of $ 1,075 , $ 287 , and $ 85 in workforce reduction, building and equipment relocation costs, and asset impairment and other charges, respectively. The workforce reduction charges incurred are for restructuring activities used to adjust our business in response to reduced demand across certain locations and products, while charges incurred in relation to building and equipment relocation costs and other charges are for activities intended to consolidate operations across our site locations. The remaining liability associated with our other restructuring actions was $ 697 and $ 246 at June 30, 2024 and December 31, 2023, respectively. The following table displays the restructuring liability activity included in accrued expenses and other liabilities for all plans for the six months ended June 30, 2024: Restructuring liability at January 1, 2024 $ 523 Restructuring charges 2,884 Costs paid ( 2,544 ) Other activity (1) ( 12 ) Restructuring liability at June 30, 2024 $ 851 (1) Other charges include the effects of currency translation, non-cash asset write-downs, travel, legal and other charges. |
Accrued Expenses and Other Liab
Accrued Expenses and Other Liabilities | 6 Months Ended |
Jun. 30, 2024 | |
Payables and Accruals [Abstract] | |
Accrued Expenses and Other Liabilities | NOTE 10 – Accrued Expenses and Other Liabilities The components of accrued expenses and other liabilities are as follows: As of June 30, December 31, 2024 2023 Accrued product-related costs $ 1,971 $ 2,183 Accrued income taxes 5,911 6,899 Accrued property and other taxes 1,273 1,542 Accrued professional fees 1,894 1,232 Accrued customer-related liabilities 1,562 2,167 Dividends payable 1,217 1,233 Remediation reserves 12,130 12,044 Derivative liabilities 463 747 Other accrued liabilities 5,505 6,514 Total accrued expenses and other liabilities $ 31,926 $ 34,561 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | NOTE 11 – Commitments and Contingencies Certain processes in the manufacture of our current and past products may create by-products classified as hazardous waste. As a result, we have been notified by the U.S. Environmental Protection Agency (“EPA”), state environmental agencies and in some cases, groups of potentially responsible parties, that we may be potentially liable for environmental contamination at several sites currently or formerly owned or operated by us. Currently, none of these costs and accruals relate to sites that provide revenue generating activities for the Company. Two of those sites, Asheville, North Carolina (the “Asheville Site”) and Mountain View, California, are designated National Priorities List sites under the EPA’s Superfund program. We accrue a liability for probable remediation activities, claims, and proceedings against us with respect to environmental matters if the amount can be reasonably estimated, and provide disclosures including the nature of a loss whenever it is probable or reasonably possible that a potentially material loss may have occurred but cannot be estimated. We record contingent loss accruals on an undiscounted basis. A roll-forward of remediation reserves included in accrued expenses and other liabilities on the Condensed Consolidated Balance Sheets is comprised of the following: As of June 30, December 31, 2024 2023 Balance at beginning of period $ 12,044 $ 11,048 Remediation expense 749 3,502 Net remediation payments ( 664 ) ( 2,497 ) Other activity (1) 1 ( 9 ) Balance at end of the period $ 12,130 $ 12,044 (1) Other activity includes currency translation adjustments not recorded through remediation expense. The Company operates under and in accordance with a federal consent decree, dated March 7, 2017, with the EPA for the Asheville Site. On February 8, 2023, the Company received a letter from the EPA (the “EPA Letter”) seeking reimbursement of its past response costs and interest thereon relating to any release or threatened release of hazardous substances at the Asheville Site in the aggregate amount of $ 9,955 from the three potentially responsible parties associated with the Asheville Site, including the Company. The Company expects its potential exposure to be between $ 1,900 and $ 9,955 . We have determined that no point within this range is more likely than another and therefore we have recorded a loss estimate of $ 1,900 as of June 30, 2024 and December 31, 2023 in the Consolidated Balance Sheets. 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. We provide product warranties when we sell our products and accrue for estimated liabilities at the time of sale. Warranty estimates are forecasts based on the best available information and historical claims experience. We accrue for specific warranty claims if we believe that the facts of a specific claim make it probable that a liability in excess of our historical experience has been incurred, and provide disclosures for specific claims whenever it is reasonably possible that a material loss may be incurred which cannot be estimated. We cannot provide assurance that the ultimate disposition of environmental, legal, and product warranty claims will not materially exceed the amount of our accrued losses and adversely impact our consolidated financial position, results of operations, or cash flows. Our accrued liabilities and disclosures will be adjusted accordingly if additional information becomes available in the future. |
Debt
Debt | 6 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
Debt | NOTE 12 - Debt Long-term debt is comprised of the following: As of June 30, December 31, 2024 2023 Total credit facility $ 400,000 $ 400,000 Balance outstanding 65,000 67,500 Standby letters of credit 1,640 1,640 Amount available, subject to covenant restrictions $ 333,360 $ 330,860 Weighted-average interest rate 6.59 % 6.07 % On December 15, 2021, we entered into a second amended and restated five-year credit agreement with a group of banks (the “Revolving Credit Facility”) to (i) increase the total credit facility to $ 400,000 , which may be increased by $ 200,000 at the request of the Company, subject to the administrative agent's approval, (ii) extend the maturity of the Revolving Credit Facility from February 12, 2024 to December 15, 2026 , (iii) replace LIBOR with SOFR as the primary reference rate used to calculate interest on the loans under the Revolving Credit Facility, (iv) increase available sublimits for letters of credit and swing line loans as well as providing for additional alternative currency borrowing capabilities, and (v) modify the financial and non-financial covenants to provide the Company additional flexibility. This unsecured credit facility replaced the prior $ 300,000 unsecured credit facility, which would have expired February 12, 2024. Borrowings in U.S. dollars under the Revolving Credit Facility bear interest, at a per annum rate equal to the applicable Term SOFR rate (but not less than 0.0 %), plus the Term SOFR adjustment, and plus an applicable margin, which ranges from 1.00 % to 1.75 %, based on our net leverage ratio. Similarly, borrowings of alternative currencies under the Revolving Credit Facility bear interest equal to a defined risk-free reference rate, plus the applicable risk-free rate adjustment and plus an applicable margin, which ranges from 1.00 % to 1.75 %, based on our net leverage ratio. We use interest rate swaps to convert a portion of our revolving credit facility’s outstanding balance from a variable rate of interest to a fixed rate. The contractual rate of these arrangements ranges from 1.49 % to 2.49 %. Refer to Note 13, “Derivative Financial Instruments,” for further discussion on the impact of interest rate swaps. The Revolving Credit Facility includes a swing line sublimit of $ 20,000 and a letter of credit sublimit of $ 20,000 . We also pay a quarterly commitment fee on the unused portion of the Revolving Credit Facility. The commitment fee ranges from 0.175 % to 0.25 % based on our net leverage ratio. The Revolving Credit Facility requires, in addition to customary representations and warranties, that we comply with a maximum net leverage ratio and a minimum interest 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 at June 30, 2024. The Revolving Credit Facility requires that we deliver quarterly financial statements, annual financial statements, auditor 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. 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, which approximates the effective interest method. Amortization expense for the three and six months ended June 30, 2024 was $ 48 and $ 97 , respectively. Amortization expense for the three and six months ended June 30, 2023 was $ 48 and $ 97 , respectively. These costs are included in interest expense in our Consolidated Statements of Earnings. |
Derivative Financial Instrument
Derivative Financial Instruments | 6 Months Ended |
Jun. 30, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Note 13 - Derivative Financial Instruments 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 as well as interest rate and cross-currency 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. The effective portion of derivative gains and losses are recorded in accumulated other comprehensive income (loss) until the hedged transaction affects earnings upon settlement, at which time they are reclassified to cost of goods sold or net sales. If it is probable that an anticipated hedged transaction 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 income (loss) to other income (expense), net. We assess hedge effectiveness qualitatively by verifying that the critical terms of the hedging instrument and the forecasted transaction continue to match, and that there have been no adverse developments that have increased the risk that the counterparty will default. No recognition of ineffectiveness was recorded in our Condensed Consolidated Statements of Earnings for the three and six months ended June 30, 2024. Foreign Currency Hedges We use forward contracts to mitigate currency risk related to a portion of our forecasted foreign currency revenues and costs. The currency forward contracts are designed as cash flow hedges and are recorded in the Condensed Consolidated Balance Sheets at fair value. We continue to monitor the Company’s overall currency exposure and may elect to add cash flow hedges in the future. At June 30, 2024 , we had a net unrealized loss of $ 216 in accumulated other comprehensive (loss) income, $ 63 of which is expected to be reclassified to earnings within the next 12 months. The notional amount of foreign currency forward contracts outstanding was $ 35,383 at June 30, 2024. Interest Rate Swaps We use interest rate swaps to convert a portion of our Revolving Credit Facility’s outstanding balance from a variable rate of interest to a fixed rate. As of June 30, 2024 , we have agreements to fix interest rates on $ 50,000 of long-term debt until December 2026. 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 are recorded in other comprehensive (loss) income. The estimated net amount of the existing gains that are reported in accumulated other comprehensive income (loss) that are expected to be reclassified into earnings within the next twelve months is approximately $ 1,183 . Cross-Currency Swap The Company has operations and investments in various international locations and is subject to risks associated with changing foreign exchange rates. In order to hedge the Krone-based purchase price for the acquisition of Ferroperm Piezoceramics, A.S. (“Ferroperm”), the Company entered into a cross-currency interest rate swap agreement on June 27, 2022 that synthetically swapped $ 25,000 of variable rate debt to Krone denominated variable rate debt. Upon completion of the Ferroperm acquisition on June 30, 2022, the transaction was designated as a net investment hedge for accounting purposes and will mature on June 30, 2027 . Accordingly, any gains or losses on this derivative instrument are included in the foreign currency translation component of other comprehensive income (loss) until the net investment is sold, diluted or liquidated. At June 30, 2024, we had a net unrealized loss of $ 567 in accumulated other comprehensive income (loss). Interest payments received for the cross-currency swap are excluded from the net investment hedge effectiveness assessment and are recorded in interest expense in the Condensed Consolidated Statements of Earnings. The assumptions used in measuring fair value of the cross-currency swap are considered level 2 inputs, which are based upon the Krone to U.S. Dollar exchange rate market. The location and fair values of derivative instruments designated as hedging instruments in the Condensed Consolidated Balance Sheets as of June 30, 2024, are shown in the following table: As of June 30, December 31, 2024 2023 Interest rate swaps reported in Other current assets $ 1,183 $ 1,121 Interest rate swaps reported in Other assets $ 1,061 $ 706 Cross-currency swap reported in Accrued expenses and other liabilities $ ( 146 ) $ ( 747 ) Foreign currency hedges reported in Other current assets $ — $ 1,087 Foreign currency hedges reported in Accrued expenses and other liabilities $ ( 319 ) $ — 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 foreign currency derivative assets of $ 188 and foreign currency derivative liabilities of $ 507 at June 30, 2024. The effect of derivative instruments on the Condensed Consolidated Statements of Earnings is as follows: Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, 2024 2023 2024 2023 Foreign Exchange Contracts: Amounts reclassified from AOCI to earnings: Net sales $ 70 $ ( 63 ) $ 96 $ ( 97 ) Cost of goods sold 384 589 1,141 844 Total net gain reclassified from AOCI to earnings 454 526 1,237 747 Total derivative gain on foreign exchange contracts recognized in earnings $ 454 $ 526 $ 1,237 $ 747 Interest Rate Swaps: Income recorded in Interest expense $ 371 $ 441 $ 776 $ 817 Cross-Currency Swap: Income recorded in Interest expense $ 95 $ 136 $ 189 $ 295 Total net gains on derivatives $ 920 $ 1,103 $ 2,202 $ 1,859 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 6 Months Ended |
Jun. 30, 2024 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | NOTE 14 – Accumulated Other Comprehensive Income (Loss) Shareholders’ equity includes certain items classified as accumulated other comprehensive income (loss) (“AOCI”) in the Condensed Consolidated Balance Sheets, including: • Unrealized gains (losses) on hedges relate to interest rate swaps to convert a portion of our Revolving Credit Facility's outstanding balance from a variable rate of interest into a fixed rate, foreign currency forward contracts used to hedge our exposure to changes in exchange rates affecting certain revenues and costs denominated in foreign currencies, as well as a cross-currency swap that synthetically converts our U.S. Dollar variable rate debt to Krone denominated variable rate debt. These hedges are designated as cash flow hedges, and we have deferred income statement recognition of gains and losses until the hedged transactions occur, at which time amounts are reclassified into earnings. Further information related to our derivative financial instruments is included in Note 13 – “Derivative Financial Instruments” and Note 17 – “Fair Value Measurements”. • 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 income (expense). Further information related to our pension obligations is included in Note 7 – “Retirement Plans”. • Cumulative translation adjustments relate to our non-U.S. subsidiary companies 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 (loss). Changes in exchange rates between the functional currency and the currency in which a transaction is denominated are foreign exchange transaction gains or losses. Transaction losses for the three and six months ended June 30, 2024 were $ 629 and $ 2,136 , respectively. Transaction losses for the three and six months ended June 30, 2023 were $ 2,750 and $ 2,683 , respectively. The impact of these changes are included in other income (expense) in the Condensed Consolidated Statements of Earnings. The components of accumulated other comprehensive income (loss) for the three months ended June 30, 2024, are as follows: (Gain) Loss As of Gain (Loss) Reclassified As of March 31, Recognized from AOCI June 30, 2024 in OCI to Earnings 2024 Changes in fair market value of derivatives: Gross $ 4,201 $ ( 1,350 ) $ ( 825 ) $ 2,026 Income tax benefit (expense) ( 967 ) 310 190 ( 467 ) Net 3,234 ( 1,040 ) ( 635 ) 1,559 Changes in unrealized pension cost: Gross ( 1,057 ) — 40 ( 1,017 ) Income tax benefit (expense) 437 — ( 5 ) 432 Net ( 620 ) — 35 ( 585 ) Cumulative translation adjustment: Gross 324 ( 523 ) — ( 199 ) Income tax benefit (expense) — — — — Net 324 ( 523 ) — ( 199 ) Total accumulated other comprehensive income (loss) $ 2,938 $ ( 1,563 ) $ ( 600 ) $ 775 The components of accumulated other comprehensive income (loss) for the three months ended June 30, 2023 are as follows: (Gain) Loss As of Gain (Loss) Reclassified As of March 31, Recognized from AOCI June 30, 2023 in OCI to Earnings 2023 Changes in fair market value of derivatives: Gross $ 4,403 $ 2,046 $ ( 967 ) $ 5,482 Income tax benefit (expense) ( 1,012 ) ( 471 ) 222 ( 1,261 ) Net 3,391 1,575 ( 745 ) 4,221 Changes in unrealized pension cost: Gross ( 1,226 ) — 7 ( 1,219 ) Income tax benefit (expense) 389 — ( 3 ) 386 Net ( 837 ) — 4 ( 833 ) Cumulative translation adjustment: Gross ( 1,856 ) 2,159 — 303 Income tax benefit (expense) — — — — Net ( 1,856 ) 2,159 — 303 Total accumulated other comprehensive income (loss) $ 698 $ 3,734 $ ( 741 ) $ 3,691 The components of accumulated other comprehensive income (loss) for the six months ended June 30, 2024 are as follows: (Gain) Loss As of Gain (Loss) Reclassified As of December 31, Recognized from AOCI June 30, 2023 in OCI to Earnings 2024 Changes in fair market value of derivatives: Gross $ 3,252 $ 788 ( 2,014 ) $ 2,026 Income tax benefit (expense) ( 749 ) ( 181 ) 463 ( 467 ) Net 2,503 607 ( 1,551 ) 1,559 Changes in unrealized pension cost: Gross ( 1,126 ) — 109 ( 1,017 ) Income tax benefit (expense) 442 — ( 10 ) 432 Net ( 684 ) — 99 ( 585 ) Cumulative translation adjustment: Gross 2,445 ( 2,644 ) — ( 199 ) Income tax benefit (expense) — — — — Net 2,445 ( 2,644 ) — ( 199 ) Total accumulated other comprehensive (loss) income $ 4,264 $ ( 2,037 ) $ ( 1,452 ) $ 775 The components of accumulated other comprehensive income (loss) for the six months ended June 30, 2023 are as follows: (Gain) Loss As of Gain (Loss) Reclassified As of December 31, Recognized from AOCI June 30, 2022 in OCI to Earnings 2023 Changes in fair market value of derivatives: Gross $ 3,911 $ 3,135 ( 1,564 ) $ 5,482 Income tax benefit (expense) ( 899 ) ( 721 ) 359 ( 1,261 ) Net 3,012 2,414 ( 1,205 ) 4,221 Changes in unrealized pension cost: Gross ( 1,179 ) — ( 40 ) ( 1,219 ) Income tax benefit (expense) 376 — 10 386 Net ( 803 ) — ( 30 ) ( 833 ) Cumulative translation adjustment: Gross ( 2,880 ) 3,183 — 303 Income tax benefit (expense) — — — — Net ( 2,880 ) 3,183 — 303 Total accumulated other comprehensive (loss) income $ ( 671 ) $ 5,597 $ ( 1,235 ) $ 3,691 |
Shareholders' Equity
Shareholders' Equity | 6 Months Ended |
Jun. 30, 2024 | |
Stockholders' Equity Note [Abstract] | |
Shareholders' Equity | NOTE 15 – Shareholders’ Equity Share count and par value data related to shareholders’ equity are as follows: As of June 30, December 31, 2024 2023 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 57,541,709 57,444,228 Shares outstanding 30,421,790 30,824,248 Treasury stock Shares held 27,119,919 26,619,980 On February 9, 2023, the Board of Directors approved a share repurchase program that authorized the Company to repurchase up to $ 50,000 of the Company’s common stock. The repurchase program had no set expiration date and replaced the repurchase program approved by the Board of Directors on May 13, 2021. The purchases under the program were made from time to time in the open market (including, without limitation, through the use of Rule 10b5-1 plans), depending on a number of factors, including our evaluation of general market and economic conditions, our financial condition and the trading price of our common stock. On February 2, 2024, our Board of Directors approved a new share repurchase program that authorizes the Company to repurchase up to $ 100,000 of its common stock. The repurchase program has no set expiration date and supersedes and replaces the repurchase program approved by the Board of Directors in February 2023. The purchases may be made from time to time in the open market (including, without limitation, through the use of Rule 10b5-1 plans), depending on a number of factors, including our evaluation of general market and economic conditions, our financial condition and the trading price of our common stock. The repurchase program may be extended, modified, suspended or discontinued at any time. During the three and six months ended June 30, 2024, 228,000 and 499,939 shares of common stock were repurchased for $ 11,129 and $ 23,207 , respectively, across both share repurchase programs. During the three and six months ended June 30, 2023, 197,716 and 395,987 shares of common stock were repurchased for $ 8,760 and $ 17,562 , respectively. As of June 30, 2024, approximately $ 81,241 remains available for future purchases. As of 2023, we are subject to a 1% excise tax on stock repurchases under the United States Inflation Reduction Act of 2022 which we include in the cost of stock repurchases as a reduction of shareholders’ equity. As of June 30, 2024 and December 31, 2023, we had $ 460 a nd $ 359 , respectively, recorded in Accrued expenses and other liabilities in the Consolidated Balance Sheet. A roll-forward of common shares outstanding is as follows: Six Months Ended June 30, June 30, 2024 2023 Balance at the beginning of the year 30,824,248 31,680,890 Repurchases ( 499,939 ) ( 395,987 ) Restricted share issuances 97,481 109,474 Balance at the end of the period 30,421,790 31,394,377 Certain potentially dilutive restricted stock units are excluded from diluted earnings per share because they are anti-dilutive. The number of outstanding awards that were anti-dilutive for the three and six months ended June 30, 2024 was 2,391 and 6,461 , respectively. The number of outstanding awards that were anti-dilutive for the six months ended June 30, 2023 was 5,000 . There were no anti-dilutive shares for the three months ended June 30, 2023. |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | NOTE 16- Stock-Based Compensation At June 30, 2024, we had five active 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”), the 2014 Performance and Incentive Compensation Plan (“2014 Plan”), and the 2018 Equity and Incentive Compensation Plan (“2018 Plan”). Future grants can only be made under the 2018 Plan. These plans allow or allowed (as applicable) for grants of stock options, stock appreciation rights, restricted stock, restricted stock units (“RSUs”), performance shares, performance units, and other stock awards subject to the terms of the specific plans under which the awards are granted. The following table summarizes the compensation expense included in selling, general and administrative expenses in the Condensed Consolidated Statements of Earnings related to stock-based compensation plans: Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, 2024 2023 2024 2023 Service-based RSUs $ 981 $ 765 $ 1,875 $ 1,535 Performance and Market-based RSUs 215 723 370 1,357 Cash-settled RSUs 136 161 299 343 Total $ 1,332 $ 1,649 $ 2,544 $ 3,235 Income tax benefit 306 379 585 744 Net expense $ 1,026 $ 1,270 $ 1,959 $ 2,491 The following table summarizes the unrecognized compensation expense related to unvested RSUs by type and the weighted-average period in which the expense is to be recognized: Unrecognized Compensation Weighted- Expense at Average June 30, 2024 Period (years) Service-based RSUs $ 4,260 1.50 Performance and Market-based RSUs 3,708 2.15 Total $ 7,968 1.80 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 June 30, 2024: 2018 Plan 2014 Plan 2009 Plan 2004 Plan Directors' Awards originally available 2,500,000 1,500,000 3,400,000 6,500,000 N/A Maximum potential awards outstanding 723,377 35,100 30,000 14,545 4,722 RSUs and cash-settled awards vested and released 621,161 — — — — Awards available for grant 1,155,462 — — — — Service-Based Restricted Stock Units The following table summarizes the service-based RSU activity for the six months ended June 30, 2024: Units Weighted Outstanding at December 31, 2023 280,966 $ 30.36 Granted 92,296 43.70 Vested and released ( 55,417 ) 37.19 Forfeited ( 5,357 ) 42.11 Outstanding at June 30, 2024 312,488 $ 32.89 Releasable at June 30, 2024 141,167 $ 21.76 Performance and Market-Based Restricted Stock Units The following table summarizes the performance and market-based RSU activity for the six months ended June 30, 2024: Units Weighted Outstanding at December 31, 2023 220,656 $ 36.96 Granted 75,498 43.77 Attained by performance 55,272 33.37 Released ( 112,907 ) 33.85 Forfeited ( 10,395 ) 37.33 Outstanding at June 30, 2024 228,124 $ 39.96 Releasable at June 30, 2024 — $ — 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 June 30, 2024 and December 31, 2023, we had 48,372 and 42,062 cash-settled RSUs outstanding, respectively. At June 30, 2024 and December 31, 2023, liabilities of $ 717 and $ 676 , respectively, were included in accrued expenses and other liabilities on our Condensed Consolidated Balance Sheets. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | NOTE 17 — Fair Value Measurements The table below summarizes our financial assets and liabilities that were measured at fair value on a recurring basis as of June 30, 2024: Asset (Liability) Carrying Quoted Prices Significant Significant Interest rate swaps $ 2,244 $ — $ 2,244 $ — Foreign currency hedges $ ( 319 ) $ — $ ( 319 ) $ — Cross-currency swap $ ( 146 ) $ — $ ( 146 ) $ — Qualified replacement plan assets $ 12,600 $ 12,600 $ — $ — Contingent consideration $ ( 2,116 ) $ — $ — $ ( 2,116 ) The table below summarizes the financial assets and liabilities that were measured at fair value on a recurring basis as of December 31, 2023: Asset (Liability) Carrying Quoted Prices Significant Significant Interest rate swaps $ 1,827 $ — $ 1,827 $ — Foreign currency hedges $ 1,087 $ — $ 1,087 $ — Cross-currency swap $ ( 747 ) $ — $ ( 747 ) $ — Qualified replacement plan assets $ 13,392 $ 13,392 $ — $ — Contingent consideration $ ( 3,764 ) $ — $ — $ ( 3,764 ) We use interest rate swaps to convert a portion of our Revolving Credit Facility’s outstanding balance from a variable rate of interest into a fixed rate and foreign currency forward contracts to hedge the effect of foreign currency changes on certain revenues and costs denominated in foreign currencies. The Company entered into a cross-currency swap agreement in order to manage its exposure to changes in interest rates related to foreign debt. These derivative financial instruments are measured at fair value on a recurring basis. 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 that market is not active and therefore they are classified within Level 2 of the fair value hierarchy. The fair value of the contingent consideration requires significant judgment. The Company's fair value estimates used in the contingent consideration valuation are considered Level 3 fair value measurements. The fair value estimates were based on assumptions management believes to be reasonable, but that are inherently uncertain, including estimates of future revenues and timing of events and activities that are expected to take place. Refer to Note 3 “Business Acquisitions” for further discussion on contingent consideration. A roll-forward of the contingent consideration is as follows: Contingent Balance at December 31, 2023 $ 3,764 Change in fair value ( 572 ) Cash paid ( 1,076 ) Balance at June 30, 2024 $ 2,116 As of June 30, 2024, approximately $ 1,268 was recorded in accrued expenses and other liabilities with the remainder in other long-term obligations. Our long-term debt consists of the Revolving Credit Facility, which is recorded at its carrying value. There is a readily determinable market for our long-term 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 its carrying value and was determined by valuing a similar hypothetical coupon bond and attributing that value to our long-term debt under the Revolving Credit Facility. The qualified replacement plan assets consist of investment funds maintained for future contributions to the Company’s U.S. 401(k) program. The investments are Level 1 marketable securities and are recorded in Other Assets on our Condensed Consolidated Balance Sheets. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 18 — Income Taxes The effective income tax rates for the three and six months ended June 30, 2024 and 2023 are as follows: Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, 2024 2023 2024 2023 Effective tax rate 17.2 % 19.8 % 17.8 % 19.5 % Our effective income tax rate was 17.2 % and 19.8 % in the second quarters of 2024 and 2023, respectively. The decrease in the effective income tax rate is primarily attributable to a mix of earnings taxed at lower rates. The second quarter 2024 effective income tax rate was lower than the U.S. statutory federal tax rate for the same reason as noted above. The second quarter 2023 effective income tax rate was lower than the U.S. statutory federal tax rate primarily due to tax benefits from amended U.S. federal income tax returns. Our effective income tax rate was 17.8 % and 19.5 % in the six months ended June 30, 2024 and 2023, respectively. The decrease in the effective income tax rate is primarily attributable to a mix of earnings taxed at lower rates. The effective income tax rate in the first six months of 2024 was lower than the U.S. statutory federal tax rate for the same reason as noted above. The effective income tax rate in the first six months of 2023 was lower than the U.S. statutory federal tax rate primarily due to tax benefits recorded upon vesting of restricted stock units and tax benefits from amended U.S. federal income tax returns. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Basis of Presentation | The accompanying condensed consolidated financial statements have been prepared by CTS Corporation (“CTS”, “we”, “our”, “us” or the “Company”), without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been omitted pursuant to such rules and regulations. The unaudited condensed consolidated financial statements should be read in conjunction with the financial statements, notes thereto, and other information included in the Company’s Annual Report on Form 10‑K for the year ended December 31, 2023. The accompanying unaudited condensed consolidated financial statements reflect, in the opinion of management, all adjustments (consisting of normal recurring items) necessary for a fair statement, in all material respects, of the financial position and results of operations for the periods presented. The preparation of financial statements in conformity with generally accepted accounting principles 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 reported period. Actual results could differ materially from those estimates. The results of operations for the interim periods are not necessarily indicative of the results for the entire year. There have been no material changes in the Company’s significant accounting policies as compared to the significant accounting policies described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023. |
Accounting Pronouncements Recently Adopted | Recently issued accounting pronouncements not yet adopted ASU No. 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosure” In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which requires public entities to disclose information about their reportable segments' significant expenses and other segment items on an interim and annual basis. Public entities with a single reportable segment are required to apply the disclosure requirements in ASU 2023-07, as well as existing segment disclosures and reconciliation required under ASC 280 on an interim and annual basis. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and for the interim periods beginning after December 15, 2024, with early adoption permitted. The Company is currently evaluating the impact of adopting ASU 2023-07. ASU No. 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures” In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures , which requires public entities, on an annual basis, to provide disclosure of specific categories in the reconciliation of the effective tax rate, as well as disclosure of income taxes paid, disaggregated by jurisdiction. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024, with early adoption permitted. The Company is currently evaluating the impact of adopting ASU 2023-09. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Summary of Disaggregated Revenues | The following table presents revenues disaggregated by the major markets we serve: Three months ended Six months ended June 30, 2024 June 30, 2023 June 30, 2024 June 30, 2023 Transportation $ 64,221 $ 82,021 $ 130,738 $ 156,310 Industrial 32,175 34,082 63,238 74,331 Medical 17,832 17,083 34,733 34,115 Aerospace & Defense 15,934 11,996 27,203 26,420 Total $ 130,162 $ 145,182 $ 255,912 $ 291,176 The end-market sales for 2023 were adjusted by immaterial amounts to align the classification of certain customers in connection with our most recent acquisitions with our enterprise-level end market information. |
Business Acquisitions (Tables)
Business Acquisitions (Tables) - Maglab AG Acquisition | 6 Months Ended |
Jun. 30, 2024 | |
Business Acquisition [Line Items] | |
Summary of Consideration Paid and Fair Values of Assets Acquired and Liabilities Assumed | The following table summarizes the final purchase price, the fair values of the assets acquired, and the liabilities assumed as of the date of acquisition: Consideration Paid Cash paid, net of cash acquired of $ 14 $ 4,153 Contingent consideration 3,564 Purchase price $ 7,717 Fair Values at Accounts receivable $ 348 Inventory 43 Other current assets 41 Property, plant and equipment 35 Goodwill 4,997 Intangible assets 2,860 Fair value of assets acquired 8,324 Less fair value of liabilities acquired ( 607 ) Purchase price $ 7,717 |
Summary of Carrying Amounts and Weighted Average Lives of Acquired Intangible Assets | The following table summarizes the carrying amounts and weighted average lives of the acquired intangible assets: Carrying Weighted Customer lists/relationships $ 2,800 13.0 Technology and other intangibles 60 3.0 Total $ 2,860 |
Accounts Receivable, Net (Table
Accounts Receivable, Net (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Receivables [Abstract] | |
Components of Accounts Receivable, Net | The components of accounts receivable, net are as follows: As of June 30, December 31, 2024 2023 Accounts receivable, gross $ 86,092 $ 79,500 Less: Allowance for credit losses ( 712 ) ( 931 ) Accounts receivable, net $ 85,380 $ 78,569 |
Inventories, Net (Tables)
Inventories, Net (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Inventory Disclosure [Abstract] | |
Summary of Inventories, Net | Inventories, net consists of the following: As of June 30, December 31, 2024 2023 Finished goods $ 13,645 $ 20,279 Work-in-process 20,628 19,213 Raw materials 32,232 33,187 Less: Inventory reserves ( 14,835 ) ( 12,648 ) Inventories, net $ 51,670 $ 60,031 |
Property, Plant and Equipment_2
Property, Plant and Equipment, Net (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Property, Plant and Equipment [Abstract] | |
Summary of Property, Plant and Equipment, Net | Property, plant and equipment, net is comprised of the following: As of June 30, December 31, 2024 2023 Land and land improvements $ 536 $ 536 Buildings and improvements 74,178 74,188 Machinery and equipment 265,155 261,435 Less: Accumulated depreciation ( 248,110 ) ( 243,567 ) Property, plant and equipment, net $ 91,759 $ 92,592 |
Retirement Plans (Tables)
Retirement Plans (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Pension Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Net Pension (Income) Expense or Postretirement Expense | Net pension expense for our domestic and foreign plans included in other expense, net in the Condensed Consolidated Statements of Earnings is as follows: Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, 2024 2023 2024 2023 Net pension expense $ 54 $ 66 $ 106 $ 133 The components of net pension expense for our domestic and foreign plans include the following: Domestic Pension Plans Foreign Pension Plans Three Months Ended Three Months Ended June 30, June 30, June 30, June 30, 2024 2023 2024 2023 Service cost $ — $ — $ 4 $ 5 Interest cost 9 10 6 9 Expected return on plan assets (1) — — ( 5 ) ( 6 ) Amortization of loss 6 5 34 43 Total expense, net $ 15 $ 15 $ 39 $ 51 (1) Expected return on plan assets is net of expected investment expenses and certain administrative expenses. Domestic Pension Plans Foreign Pension Plans Six Months Ended Six Months Ended June 30, June 30, June 30, June 30, 2024 2023 2024 2023 Service cost $ — $ — $ 7 $ 11 Interest cost 18 19 12 19 Expected return on plan assets (1) — — ( 10 ) ( 13 ) Amortization of loss 12 11 67 86 Total expense, net $ 30 $ 30 $ 76 $ 103 (1) Expected return on plan assets is net of expected investment expenses and certain administrative expenses. |
Other Postretirement Benefits Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
Net Pension (Income) Expense or Postretirement Expense | Net post-retirement expense for our other post-retirement plan includes the following components: Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, 2024 2023 2024 2023 Service cost $ — $ — $ — $ — Interest cost 48 48 96 96 Amortization of gain ( 16 ) ( 84 ) ( 31 ) ( 168 ) Total expense (income), net $ 32 $ ( 36 ) $ 65 $ ( 72 ) |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary Changes in Net Carrying Amount of Goodwill | Changes in the net carrying amount of goodwill were as follows: Total Goodwill as of December 31, 2023 $ 157,638 Foreign exchange impact ( 1,577 ) Goodwill as of June 30, 2024 $ 156,061 |
Summary of Other Intangible Assets | Other intangible assets, net consist of the following components: As of June 30, 2024 Gross Accumulated Net Amount Customer lists/relationships $ 143,337 $ ( 66,956 ) $ 76,381 Technology and other intangibles 53,855 ( 33,409 ) 20,446 Other intangible assets, net $ 197,192 $ ( 100,365 ) $ 96,827 As of December 31, 2023 Gross Accumulated Net Amount Customer lists/relationships $ 144,671 $ ( 63,006 ) $ 81,665 Technology and other intangibles 54,052 ( 31,760 ) 22,292 Other intangible assets, net $ 198,723 $ ( 94,766 ) $ 103,957 |
Summary of Amortization Expense Remaining for Other Intangible Assets | amortization expense for other intangible assets as of June 30, 2024 is as follows: Amortization Remaining 2024 $ 5,476 2025 10,613 2026 10,458 2027 10,399 2028 10,364 Thereafter 49,517 Total amortization expense $ 96,827 |
Costs Associated with Exit an_2
Costs Associated with Exit and Restructuring Activities (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Charges | Total restructuring charges are as follows: Three Months Ended June 30, 2024 June 30, 2023 Restructuring charges $ 1,190 $ 1,895 Six Months Ended June 30, 2024 June 30, 2023 Restructuring charges $ 2,884 $ 2,807 |
Schedule of Restructuring Liability Activity | The following table displays the restructuring liability activity included in accrued expenses and other liabilities for all plans for the six months ended June 30, 2024: Restructuring liability at January 1, 2024 $ 523 Restructuring charges 2,884 Costs paid ( 2,544 ) Other activity (1) ( 12 ) Restructuring liability at June 30, 2024 $ 851 (1) Other charges include the effects of currency translation, non-cash asset write-downs, travel, legal and other charges. |
Accrued Expenses and Other Li_2
Accrued Expenses and Other Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Payables and Accruals [Abstract] | |
Components of Accrued Expenses and Other Liabilities | The components of accrued expenses and other liabilities are as follows: As of June 30, December 31, 2024 2023 Accrued product-related costs $ 1,971 $ 2,183 Accrued income taxes 5,911 6,899 Accrued property and other taxes 1,273 1,542 Accrued professional fees 1,894 1,232 Accrued customer-related liabilities 1,562 2,167 Dividends payable 1,217 1,233 Remediation reserves 12,130 12,044 Derivative liabilities 463 747 Other accrued liabilities 5,505 6,514 Total accrued expenses and other liabilities $ 31,926 $ 34,561 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Roll-forward of Remediation Reserves Included in Accrued Expenses and Other Liabilities | A roll-forward of remediation reserves included in accrued expenses and other liabilities on the Condensed Consolidated Balance Sheets is comprised of the following: As of June 30, December 31, 2024 2023 Balance at beginning of period $ 12,044 $ 11,048 Remediation expense 749 3,502 Net remediation payments ( 664 ) ( 2,497 ) Other activity (1) 1 ( 9 ) Balance at end of the period $ 12,130 $ 12,044 (1) Other activity includes currency translation adjustments not recorded through remediation expense. |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
Summary of Long-Term Debt | Long-term debt is comprised of the following: As of June 30, December 31, 2024 2023 Total credit facility $ 400,000 $ 400,000 Balance outstanding 65,000 67,500 Standby letters of credit 1,640 1,640 Amount available, subject to covenant restrictions $ 333,360 $ 330,860 Weighted-average interest rate 6.59 % 6.07 % |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Location and Fair Values of Derivative Instruments | The location and fair values of derivative instruments designated as hedging instruments in the Condensed Consolidated Balance Sheets as of June 30, 2024, are shown in the following table: As of June 30, December 31, 2024 2023 Interest rate swaps reported in Other current assets $ 1,183 $ 1,121 Interest rate swaps reported in Other assets $ 1,061 $ 706 Cross-currency swap reported in Accrued expenses and other liabilities $ ( 146 ) $ ( 747 ) Foreign currency hedges reported in Other current assets $ — $ 1,087 Foreign currency hedges reported in Accrued expenses and other liabilities $ ( 319 ) $ — |
Schedule of Effect of Derivative Instruments on Consolidated Statements of Earnings | The effect of derivative instruments on the Condensed Consolidated Statements of Earnings is as follows: Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, 2024 2023 2024 2023 Foreign Exchange Contracts: Amounts reclassified from AOCI to earnings: Net sales $ 70 $ ( 63 ) $ 96 $ ( 97 ) Cost of goods sold 384 589 1,141 844 Total net gain reclassified from AOCI to earnings 454 526 1,237 747 Total derivative gain on foreign exchange contracts recognized in earnings $ 454 $ 526 $ 1,237 $ 747 Interest Rate Swaps: Income recorded in Interest expense $ 371 $ 441 $ 776 $ 817 Cross-Currency Swap: Income recorded in Interest expense $ 95 $ 136 $ 189 $ 295 Total net gains on derivatives $ 920 $ 1,103 $ 2,202 $ 1,859 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Equity [Abstract] | |
Components of Accumulated Other Comprehensive Income (Loss) | The components of accumulated other comprehensive income (loss) for the three months ended June 30, 2024, are as follows: (Gain) Loss As of Gain (Loss) Reclassified As of March 31, Recognized from AOCI June 30, 2024 in OCI to Earnings 2024 Changes in fair market value of derivatives: Gross $ 4,201 $ ( 1,350 ) $ ( 825 ) $ 2,026 Income tax benefit (expense) ( 967 ) 310 190 ( 467 ) Net 3,234 ( 1,040 ) ( 635 ) 1,559 Changes in unrealized pension cost: Gross ( 1,057 ) — 40 ( 1,017 ) Income tax benefit (expense) 437 — ( 5 ) 432 Net ( 620 ) — 35 ( 585 ) Cumulative translation adjustment: Gross 324 ( 523 ) — ( 199 ) Income tax benefit (expense) — — — — Net 324 ( 523 ) — ( 199 ) Total accumulated other comprehensive income (loss) $ 2,938 $ ( 1,563 ) $ ( 600 ) $ 775 The components of accumulated other comprehensive income (loss) for the three months ended June 30, 2023 are as follows: (Gain) Loss As of Gain (Loss) Reclassified As of March 31, Recognized from AOCI June 30, 2023 in OCI to Earnings 2023 Changes in fair market value of derivatives: Gross $ 4,403 $ 2,046 $ ( 967 ) $ 5,482 Income tax benefit (expense) ( 1,012 ) ( 471 ) 222 ( 1,261 ) Net 3,391 1,575 ( 745 ) 4,221 Changes in unrealized pension cost: Gross ( 1,226 ) — 7 ( 1,219 ) Income tax benefit (expense) 389 — ( 3 ) 386 Net ( 837 ) — 4 ( 833 ) Cumulative translation adjustment: Gross ( 1,856 ) 2,159 — 303 Income tax benefit (expense) — — — — Net ( 1,856 ) 2,159 — 303 Total accumulated other comprehensive income (loss) $ 698 $ 3,734 $ ( 741 ) $ 3,691 The components of accumulated other comprehensive income (loss) for the six months ended June 30, 2024 are as follows: (Gain) Loss As of Gain (Loss) Reclassified As of December 31, Recognized from AOCI June 30, 2023 in OCI to Earnings 2024 Changes in fair market value of derivatives: Gross $ 3,252 $ 788 ( 2,014 ) $ 2,026 Income tax benefit (expense) ( 749 ) ( 181 ) 463 ( 467 ) Net 2,503 607 ( 1,551 ) 1,559 Changes in unrealized pension cost: Gross ( 1,126 ) — 109 ( 1,017 ) Income tax benefit (expense) 442 — ( 10 ) 432 Net ( 684 ) — 99 ( 585 ) Cumulative translation adjustment: Gross 2,445 ( 2,644 ) — ( 199 ) Income tax benefit (expense) — — — — Net 2,445 ( 2,644 ) — ( 199 ) Total accumulated other comprehensive (loss) income $ 4,264 $ ( 2,037 ) $ ( 1,452 ) $ 775 The components of accumulated other comprehensive income (loss) for the six months ended June 30, 2023 are as follows: (Gain) Loss As of Gain (Loss) Reclassified As of December 31, Recognized from AOCI June 30, 2022 in OCI to Earnings 2023 Changes in fair market value of derivatives: Gross $ 3,911 $ 3,135 ( 1,564 ) $ 5,482 Income tax benefit (expense) ( 899 ) ( 721 ) 359 ( 1,261 ) Net 3,012 2,414 ( 1,205 ) 4,221 Changes in unrealized pension cost: Gross ( 1,179 ) — ( 40 ) ( 1,219 ) Income tax benefit (expense) 376 — 10 386 Net ( 803 ) — ( 30 ) ( 833 ) Cumulative translation adjustment: Gross ( 2,880 ) 3,183 — 303 Income tax benefit (expense) — — — — Net ( 2,880 ) 3,183 — 303 Total accumulated other comprehensive (loss) income $ ( 671 ) $ 5,597 $ ( 1,235 ) $ 3,691 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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 June 30, December 31, 2024 2023 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 57,541,709 57,444,228 Shares outstanding 30,421,790 30,824,248 Treasury stock Shares held 27,119,919 26,619,980 |
Summary of Common Shares Outstanding | A roll-forward of common shares outstanding is as follows: Six Months Ended June 30, June 30, 2024 2023 Balance at the beginning of the year 30,824,248 31,680,890 Repurchases ( 499,939 ) ( 395,987 ) Restricted share issuances 97,481 109,474 Balance at the end of the period 30,421,790 31,394,377 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of Compensation Expense | The following table summarizes the compensation expense included in selling, general and administrative expenses in the Condensed Consolidated Statements of Earnings related to stock-based compensation plans: Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, 2024 2023 2024 2023 Service-based RSUs $ 981 $ 765 $ 1,875 $ 1,535 Performance and Market-based RSUs 215 723 370 1,357 Cash-settled RSUs 136 161 299 343 Total $ 1,332 $ 1,649 $ 2,544 $ 3,235 Income tax benefit 306 379 585 744 Net expense $ 1,026 $ 1,270 $ 1,959 $ 2,491 |
Summary of Unrecognized Compensation Expense related to Unvested RSUs | The following table summarizes the unrecognized compensation expense related to unvested RSUs by type and the weighted-average period in which the expense is to be recognized: Unrecognized Compensation Weighted- Expense at Average June 30, 2024 Period (years) Service-based RSUs $ 4,260 1.50 Performance and Market-based RSUs 3,708 2.15 Total $ 7,968 1.80 |
Summary of Status of Plans | The following table summarizes the status of these plans as of June 30, 2024: 2018 Plan 2014 Plan 2009 Plan 2004 Plan Directors' Awards originally available 2,500,000 1,500,000 3,400,000 6,500,000 N/A Maximum potential awards outstanding 723,377 35,100 30,000 14,545 4,722 RSUs and cash-settled awards vested and released 621,161 — — — — Awards available for grant 1,155,462 — — — — |
Summary of Service-Based Restricted Stock Units | The following table summarizes the service-based RSU activity for the six months ended June 30, 2024: Units Weighted Outstanding at December 31, 2023 280,966 $ 30.36 Granted 92,296 43.70 Vested and released ( 55,417 ) 37.19 Forfeited ( 5,357 ) 42.11 Outstanding at June 30, 2024 312,488 $ 32.89 Releasable at June 30, 2024 141,167 $ 21.76 |
Summary of Performance and Market Based RSUs | The following table summarizes the performance and market-based RSU activity for the six months ended June 30, 2024: Units Weighted Outstanding at December 31, 2023 220,656 $ 36.96 Granted 75,498 43.77 Attained by performance 55,272 33.37 Released ( 112,907 ) 33.85 Forfeited ( 10,395 ) 37.33 Outstanding at June 30, 2024 228,124 $ 39.96 Releasable at June 30, 2024 — $ — |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
Summary of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis | The table below summarizes our financial assets and liabilities that were measured at fair value on a recurring basis as of June 30, 2024: Asset (Liability) Carrying Quoted Prices Significant Significant Interest rate swaps $ 2,244 $ — $ 2,244 $ — Foreign currency hedges $ ( 319 ) $ — $ ( 319 ) $ — Cross-currency swap $ ( 146 ) $ — $ ( 146 ) $ — Qualified replacement plan assets $ 12,600 $ 12,600 $ — $ — Contingent consideration $ ( 2,116 ) $ — $ — $ ( 2,116 ) The table below summarizes the financial assets and liabilities that were measured at fair value on a recurring basis as of December 31, 2023: Asset (Liability) Carrying Quoted Prices Significant Significant Interest rate swaps $ 1,827 $ — $ 1,827 $ — Foreign currency hedges $ 1,087 $ — $ 1,087 $ — Cross-currency swap $ ( 747 ) $ — $ ( 747 ) $ — Qualified replacement plan assets $ 13,392 $ 13,392 $ — $ — Contingent consideration $ ( 3,764 ) $ — $ — $ ( 3,764 ) |
Roll-forward of the Contingent Consideration | A roll-forward of the contingent consideration is as follows: Contingent Balance at December 31, 2023 $ 3,764 Change in fair value ( 572 ) Cash paid ( 1,076 ) Balance at June 30, 2024 $ 2,116 |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Income Tax Disclosure [Abstract] | |
Schedule of Effective Income Tax Rate | The effective income tax rates for the three and six months ended June 30, 2024 and 2023 are as follows: Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, 2024 2023 2024 2023 Effective tax rate 17.2 % 19.8 % 17.8 % 19.5 % |
Revenue Recognition - Summary o
Revenue Recognition - Summary of Disaggregated Revenues (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 130,162 | $ 145,182 | $ 255,912 | $ 291,176 |
Transportation | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 64,221 | 82,021 | 130,738 | 156,310 |
Industrial | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 32,175 | 34,082 | 63,238 | 74,331 |
Medical | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 17,832 | 17,083 | 34,733 | 34,115 |
Aerospace and Defense | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 15,934 | $ 11,996 | $ 27,203 | $ 26,420 |
Business Acquisitions - Additio
Business Acquisitions - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jul. 29, 2024 | Feb. 06, 2023 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Business Acquisition [Line Items] | |||||
Increased (Reduced) in purchase price for final settlement | $ (572) | ||||
Business acquired net of cash | $ 3,359 | ||||
Maglab AG Acquisition | |||||
Business Acquisition [Line Items] | |||||
Percentage of outstanding shares acquired | 100% | ||||
Purchase price of fair values of assets and liabilities acquired | $ 7,717 | ||||
Cash acquired from acquisition | 14 | ||||
Increased (Reduced) in purchase price for final settlement | $ 3 | ||||
Intangible assets provisional value | 2,860 | ||||
Contingent consideration | 3,564 | ||||
Business acquired net of cash | 4,153 | ||||
Maglab AG Acquisition | Customer lists/relationships | |||||
Business Acquisition [Line Items] | |||||
Intangible assets provisional value | $ 2,800 | ||||
Estimated weighted average amortization period | 13 years | ||||
Maglab AG Acquisition | Maximum | |||||
Business Acquisition [Line Items] | |||||
Contingent consideration | $ 6,300 | ||||
SyQwest, LLC. Acquisition | Subsequent Event | |||||
Business Acquisition [Line Items] | |||||
Business acquired net of cash | $ 125,000 |
Business Acquisitions - Summary
Business Acquisitions - Summary of Consideration Paid and Fair Values of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | 6 Months Ended | |||
Feb. 06, 2023 | Jun. 30, 2023 | Jun. 30, 2024 | Dec. 31, 2023 | |
Consideration Paid | ||||
Cash paid, net of cash acquired of $14 | $ 3,359 | |||
Fair Values | ||||
Goodwill | $ 156,061 | $ 157,638 | ||
Maglab AG Acquisition | ||||
Consideration Paid | ||||
Cash paid, net of cash acquired of $14 | $ 4,153 | |||
Contingent consideration | 3,564 | |||
Fair Values | ||||
Accounts receivable | 348 | |||
Inventory | 43 | |||
Other current assets | 41 | |||
Property, plant and equipment | 35 | |||
Goodwill | 4,997 | |||
Intangible assets | 2,860 | |||
Fair value of assets acquired | 8,324 | |||
Less fair value of liabilities acquired | (607) | |||
Purchase price | $ 7,717 |
Business Acquisitions - Summa_2
Business Acquisitions - Summary of Consideration Paid and Fair Values of Assets Acquired and Liabilities Assumed (Parenthetical) (Details) $ in Thousands | Feb. 06, 2023 USD ($) |
Maglab AG Acquisition | |
Business Acquisition [Line Items] | |
Cash acquired from acquisition | $ 14 |
Business Acquisitions - Summa_3
Business Acquisitions - Summary of Carrying Amounts and Weighted Average Lives of Acquired Intangible Assets (Details) - Maglab AG Acquisition $ in Thousands | Feb. 06, 2023 USD ($) |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Carrying Value | $ 2,860 |
Customer lists/relationships | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Carrying Value | $ 2,800 |
Weighted Average Amortization Period | 13 years |
Technology and other intangibles | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Carrying Value | $ 60 |
Weighted Average Amortization Period | 3 years |
Accounts Receivable, Net - Comp
Accounts Receivable, Net - Components of Accounts Receivable, Net (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Receivables [Abstract] | ||
Accounts receivable, gross | $ 86,092 | $ 79,500 |
Less: Allowance for credit losses | (712) | (931) |
Accounts receivable, net | $ 85,380 | $ 78,569 |
Inventories, Net - Summary of I
Inventories, Net - Summary of Inventories, Net (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 13,645 | $ 20,279 |
Work-in-process | 20,628 | 19,213 |
Raw materials | 32,232 | 33,187 |
Less: Inventory reserves | (14,835) | (12,648) |
Inventories, net | $ 51,670 | $ 60,031 |
Property, Plant and Equipment_3
Property, Plant and Equipment, Net - Summary of Property, Plant and Equipment, Net (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Property, Plant and Equipment [Line Items] | ||
Less: Accumulated depreciation | $ (248,110) | $ (243,567) |
Property, plant and equipment, net | 91,759 | 92,592 |
Land and Land Improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment gross | 536 | 536 |
Buildings and Improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment gross | 74,178 | 74,188 |
Machinery and Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment gross | $ 265,155 | $ 261,435 |
Property, Plant and Equipment_4
Property, Plant and Equipment, Net - Additional Information - (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Property, Plant and Equipment [Abstract] | ||||
Depreciation expense | $ 4,518 | $ 4,400 | $ 9,018 | $ 8,807 |
Impairment of specific asset group | $ 0 | $ 1,324 |
Retirement Plans - Net Pension
Retirement Plans - Net Pension Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Pension Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Net pension expense | $ 54 | $ 66 | $ 106 | $ 133 |
Retirement Plans - Net Pensio_2
Retirement Plans - Net Pension Expense Domestic and Foreign (Details) - Pension Plans - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Net pension expense (income) | ||||
Total expense, net | $ 54 | $ 66 | $ 106 | $ 133 |
UNITED STATES | ||||
Net pension expense (income) | ||||
Service cost | 0 | 0 | 0 | 0 |
Interest cost | 9 | 10 | 18 | 19 |
Expected return on plan assets | 0 | 0 | 0 | 0 |
Amortization of loss | 6 | 5 | 12 | 11 |
Total expense, net | 15 | 15 | 30 | 30 |
Foreign Plan | ||||
Net pension expense (income) | ||||
Service cost | 4 | 5 | 7 | 11 |
Interest cost | 6 | 9 | 12 | 19 |
Expected return on plan assets | (5) | (6) | (10) | (13) |
Amortization of loss | 34 | 43 | 67 | 86 |
Total expense, net | $ 39 | $ 51 | $ 76 | $ 103 |
Retirement Plans - Other Postre
Retirement Plans - Other Postretirement Benefit Plan (Details) - Other Postretirement Benefits Plan - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 0 | $ 0 | $ 0 | $ 0 |
Interest cost | 48 | 48 | 96 | 96 |
Amortization of gain | (16) | (84) | (31) | (168) |
Total expense, net | $ 32 | $ (36) | $ 65 | $ (72) |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Summary Changes in Net Carrying Amount of Goodwill (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2024 USD ($) | |
Goodwill Roll Forward | |
Beginning balance | $ 157,638 |
Foreign exchange impact | (1,577) |
Ending balance | $ 156,061 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Summary of Intangible Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 197,192 | $ 198,723 |
Accumulated Amortization | (100,365) | (94,766) |
Net Amount | 96,827 | 103,957 |
Customer lists/relationships | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 143,337 | 144,671 |
Accumulated Amortization | (66,956) | (63,006) |
Net Amount | 76,381 | 81,665 |
Technology and other intangibles | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 53,855 | 54,052 |
Accumulated Amortization | (33,409) | (31,760) |
Net Amount | $ 20,446 | $ 22,292 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization expense | $ 2,807 | $ 2,857 | $ 5,633 | $ 5,368 |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets - Summary of Amortization Expense (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Finite-Lived Intangible Assets, Amortization Expense, Maturity Schedule | ||
Remaining 2024 | $ 5,476 | |
2025 | 10,613 | |
2026 | 10,458 | |
2027 | 10,399 | |
2028 | 10,364 | |
Thereafter | 49,517 | |
Net Amount | $ 96,827 | $ 103,957 |
Costs Associated with Exit an_3
Costs Associated with Exit and Restructuring Activities - Schedule of Restructuring Charges (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Restructuring and Related Activities [Abstract] | ||||
Restructuring charges | $ 1,190 | $ 1,895 | $ 2,884 | $ 2,807 |
Costs Associated with Exit an_4
Costs Associated with Exit and Restructuring Activities -Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | 46 Months Ended | |||||
Jun. 30, 2024 | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Dec. 31, 2023 | Jun. 30, 2024 | Sep. 30, 2020 | |
Restructuring Cost And Reserve [Line Items] | |||||||||
Restructuring charges | $ 1,190 | $ 1,895 | $ 2,884 | $ 2,807 | |||||
Restructuring reserve | 851 | 851 | $ 851 | $ 523 | $ 851 | ||||
Asset impairment charges | 0 | $ 1,324 | |||||||
September 2020 Plan | |||||||||
Restructuring Cost And Reserve [Line Items] | |||||||||
Restructuring charges | 4,024 | ||||||||
Restructuring reserve | 100 | 100 | 100 | 83 | 100 | ||||
Restructuring costs | 128 | ||||||||
Other costs | 217 | 697 | 1,268 | ||||||
September 2020 Plan | Minimum | |||||||||
Restructuring Cost And Reserve [Line Items] | |||||||||
Restructuring and related cost, expected cost of plan | 5,100 | 5,100 | 5,100 | 5,100 | $ 4,100 | ||||
September 2020 Plan | Maximum | |||||||||
Restructuring Cost And Reserve [Line Items] | |||||||||
Restructuring and related cost, expected cost of plan | 5,500 | 5,500 | $ 5,500 | $ 5,500 | $ 4,200 | ||||
Matamoros Consolidation | |||||||||
Restructuring Cost And Reserve [Line Items] | |||||||||
Restructuring costs | 322 | $ 5,009 | 1,310 | ||||||
Exit and Disposal Activities, Building and Equipment Relocation and Workforce Reduction | |||||||||
Restructuring Cost And Reserve [Line Items] | |||||||||
Restructuring charges | 697 | 246 | |||||||
Workforce Reduction | |||||||||
Restructuring Cost And Reserve [Line Items] | |||||||||
Other restructuring costs and asset impairment charges | 757 | 1,477 | |||||||
Workforce Reduction | September 2020 Plan | |||||||||
Restructuring Cost And Reserve [Line Items] | |||||||||
Restructuring costs | 7 | ||||||||
Workforce Reduction | Matamoros Consolidation | |||||||||
Restructuring Cost And Reserve [Line Items] | |||||||||
Restructuring costs | 55 | 270 | |||||||
Building and Equipment Relocation | |||||||||
Restructuring Cost And Reserve [Line Items] | |||||||||
Other restructuring costs and asset impairment charges | 1,075 | ||||||||
Building and Equipment Relocation | September 2020 Plan | |||||||||
Restructuring Cost And Reserve [Line Items] | |||||||||
Restructuring costs | 112 | 121 | |||||||
Building and Equipment Relocation | Matamoros Consolidation | |||||||||
Restructuring Cost And Reserve [Line Items] | |||||||||
Restructuring costs | 135 | 885 | |||||||
Asset Impairment | |||||||||
Restructuring Cost And Reserve [Line Items] | |||||||||
Restructuring costs | 690 | 287 | |||||||
Other Charges | |||||||||
Restructuring Cost And Reserve [Line Items] | |||||||||
Asset impairment charges | 66 | 85 | |||||||
Asset Impairment And Other Chargers | Matamoros Consolidation | |||||||||
Restructuring Cost And Reserve [Line Items] | |||||||||
Restructuring costs | $ 132 | 155 | |||||||
Shutdown | Matamoros Consolidation | |||||||||
Restructuring Cost And Reserve [Line Items] | |||||||||
Restructuring charges | $ 54 | $ 194 |
Costs Associated with Exit an_5
Costs Associated with Exit and Restructuring Activities - Schedule of Restructuring Liability Activities (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | ||
Restructuring and Related Activities [Abstract] | |||||
Restructuring liability | $ 523 | ||||
Restructuring charges | $ 1,190 | $ 1,895 | 2,884 | $ 2,807 | |
Cost paid | (2,544) | ||||
Other activity | [1] | (12) | |||
Restructuring liability | $ 851 | $ 851 | |||
[1] Other charges include the effects of currency translation, non-cash asset write-downs, travel, legal and other charges. |
Accrued Expenses and Other Li_3
Accrued Expenses and Other Liabilities - Components of Accrued Expenses and Other Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 | Dec. 31, 2022 |
Payables and Accruals [Abstract] | |||
Accrued product-related costs | $ 1,971 | $ 2,183 | |
Accrued income taxes | 5,911 | 6,899 | |
Accrued property and other taxes | 1,273 | 1,542 | |
Accrued professional fees | 1,894 | 1,232 | |
Accrued customer-related liabilities | 1,562 | 2,167 | |
Dividends payable | 1,217 | 1,233 | |
Remediation reserves | 12,130 | 12,044 | $ 11,048 |
Derivative liabilities | 463 | 747 | |
Other accrued liabilities | 5,505 | 6,514 | |
Total accrued expenses and other liabilities | $ 31,926 | $ 34,561 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) $ in Thousands | 6 Months Ended | ||
Feb. 08, 2023 USD ($) | Jun. 30, 2024 USD ($) Site | Dec. 31, 2023 USD ($) | |
Loss Contingencies [Line Items] | |||
Estimate loss | $ 1,900 | $ 1,900 | |
U.S. Environmental Protection Agency | |||
Loss Contingencies [Line Items] | |||
Number of sites under National Priorities List of Superfund program | Site | 2 | ||
Reimbursement costs and interest | $ 9,955 | ||
U.S. Environmental Protection Agency | Minimum | |||
Loss Contingencies [Line Items] | |||
Reimbursement expect to potential exposure | 1,900 | ||
U.S. Environmental Protection Agency | Maximum | |||
Loss Contingencies [Line Items] | |||
Reimbursement expect to potential exposure | $ 9,955 |
Commitments and Contingencies_2
Commitments and Contingencies - Roll-forward of Remediation Reserves Included in Accrued Expenses and Other Liabilities (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2024 | Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Balance at beginning of period | $ 12,044 | $ 11,048 |
Remediation expense | 749 | 3,502 |
Net remediation payments | (664) | (2,497) |
Other activity | 1 | (9) |
Balance at end of the period | $ 12,130 | $ 12,044 |
Debt - Summary of Long-Term Deb
Debt - Summary of Long-Term Debt (Details) - USD ($) | Jun. 30, 2024 | Dec. 31, 2023 | Dec. 15, 2021 | May 23, 2016 |
Long-term debt | ||||
Total credit facility | $ 400,000,000 | $ 400,000,000 | ||
Balance outstanding | 65,000,000 | 67,500,000 | ||
Standby letters of credit | 1,640,000 | 1,640,000 | ||
Amount available, subject to covenant restrictions | 333,360,000 | 330,860,000 | ||
Revolving Credit Facility Due 2024 | ||||
Long-term debt | ||||
Total credit facility | $ 400,000,000 | $ 300,000,000 | ||
Balance outstanding | $ 65,000,000 | $ 67,500,000 | ||
Weighted-average interest rate | 6.59% | 6.07% |
Debt - Additional Information (
Debt - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||||
Dec. 15, 2021 | May 23, 2016 | Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Line of Credit Facility | |||||||
Line of credit maximum borrowing amount | $ 400,000,000 | $ 400,000,000 | $ 400,000,000 | ||||
Debt amortization expense | $ 48,000 | $ 48,000 | $ 97,000 | $ 97,000 | |||
Revolving Credit Facility Due 2024 | |||||||
Line of Credit Facility | |||||||
Line of credit maximum borrowing amount | $ 400,000,000 | $ 300,000,000 | |||||
Line of credit facility contingent increase to maximum borrowing capacity | $ 200,000,000 | ||||||
Maturity date | Dec. 15, 2026 | Feb. 12, 2024 | |||||
Revolving Credit Facility Due 2024 | Minimum | |||||||
Line of Credit Facility | |||||||
Commitment fee percentage per annum | 0.175% | ||||||
Revolving Credit Facility Due 2024 | Maximum | |||||||
Line of Credit Facility | |||||||
Commitment fee percentage per annum | 0.25% | ||||||
Revolving Credit Facility | Minimum | |||||||
Line of Credit Facility | |||||||
Interest rate | 0% | ||||||
Contractual rate | 1.49% | 1.49% | |||||
Revolving Credit Facility | Maximum | |||||||
Line of Credit Facility | |||||||
Contractual rate | 2.49% | 2.49% | |||||
Revolving Credit Facility | U S Dollar Denominated Debt | Minimum | |||||||
Line of Credit Facility | |||||||
Interest rate plus an applicable margin | 1% | ||||||
Revolving Credit Facility | U S Dollar Denominated Debt | Maximum | |||||||
Line of Credit Facility | |||||||
Interest rate plus an applicable margin | 1.75% | ||||||
Revolving Credit Facility | Foreign Currency Denominated Debt | Minimum | |||||||
Line of Credit Facility | |||||||
Interest rate plus an applicable margin | 1% | ||||||
Revolving Credit Facility | Foreign Currency Denominated Debt | Maximum | |||||||
Line of Credit Facility | |||||||
Interest rate plus an applicable margin | 1.75% | ||||||
Revolving Credit Facility Due 2024 Swingline Sublimit | |||||||
Line of Credit Facility | |||||||
Line of credit maximum borrowing amount | $ 20,000,000 | ||||||
Revolving Credit Facility Due 2024 Letter Of Credit Sublimit | |||||||
Line of Credit Facility | |||||||
Line of credit maximum borrowing amount | $ 20,000,000 | ||||||
Line of Credit | Revolving Credit Facility Due 2024 | |||||||
Line of Credit Facility | |||||||
Debt instrument, term | 5 years |
Derivative Financial Instrume_3
Derivative Financial Instruments - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2024 | Dec. 31, 2023 | Jun. 27, 2022 | |
Derivative [Line Items] | ||||
Derivative hedge, Ineffectiveness recognized | $ 0 | $ 0 | ||
Unrealized gain (loss) on foreign currency derivatives, net, before tax | (216,000) | |||
Derivative liabilities | 463,000 | 463,000 | $ 747,000 | |
Foreign Currency Derivatives | ||||
Derivative [Line Items] | ||||
Derivative liabilities | 507,000 | 507,000 | ||
Cross-Currency Swap | ||||
Derivative [Line Items] | ||||
Unrealized gain (loss) on foreign currency derivatives, net, before tax | (567,000) | |||
Derivative liabilities | 146,000 | 146,000 | 747,000 | |
Cross-Currency Swap | Krone | ||||
Derivative [Line Items] | ||||
Variable Rate debt | $ 25,000,000 | |||
Foreign Currency Forward Contracts | ||||
Derivative [Line Items] | ||||
Derivative asset | 188,000 | 188,000 | ||
Cash Flow Hedging | ||||
Derivative [Line Items] | ||||
Derivative asset | 0 | 0 | 1,087,000 | |
Derivative liabilities | 319,000 | $ 319,000 | $ 0 | |
Designated As Net Investment Hedge | Ferroperm Acquisition | ||||
Derivative [Line Items] | ||||
Derivative maturity date | Jun. 30, 2027 | |||
Designated As Hedging | Cash Flow Hedging | Interest Rate Swap | ||||
Derivative [Line Items] | ||||
Derivative, notional amount | 50,000,000 | $ 50,000,000 | ||
Interest rate cash flow hedge gain (loss) to be reclassified during next 12 months | 1,183,000 | 1,183,000 | ||
Designated As Hedging | Cash Flow Hedging | Foreign Currency Forward Contracts | ||||
Derivative [Line Items] | ||||
Foreign currency cash flow hedge (loss) gain to be reclassified during next 12 months | 63,000 | 63,000 | ||
Derivative, notional amount | $ 35,383,000 | $ 35,383,000 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Schedule of Location and Fair Values of Derivative Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Derivatives Fair Value [Line Items] | ||
Derivative liabilities | $ (463) | $ (747) |
Cash Flow Hedging | ||
Derivatives Fair Value [Line Items] | ||
Derivative asset | $ 0 | $ 1,087 |
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Other Assets, Current | Other Assets, Current |
Derivative liabilities | $ (319) | $ 0 |
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Accrued Liabilities, Current | Accrued Liabilities, Current |
Interest Rate Swap | Cash Flow Hedging | Other Current Assets | ||
Derivatives Fair Value [Line Items] | ||
Derivative asset | $ 1,183 | $ 1,121 |
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Other Assets, Current | Other Assets, Current |
Interest Rate Swap | Cash Flow Hedging | Other Assets | ||
Derivatives Fair Value [Line Items] | ||
Derivative asset | $ 1,061 | $ 706 |
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Other Assets, Noncurrent | Other Assets, Noncurrent |
Cross-Currency Swap | ||
Derivatives Fair Value [Line Items] | ||
Derivative liabilities | $ (146) | $ (747) |
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Accrued Liabilities, Current | Accrued Liabilities, Current |
Derivative Financial Instrume_5
Derivative Financial Instruments - Schedule of Effect of Derivative Instruments on Consolidated Statements of Earnings (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, Gain on Derivative, Net | $ 920 | $ 1,103 | $ 2,202 | $ 1,859 |
Foreign Currency Derivatives | Designated As Hedging | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total net gain reclassified from AOCI to earnings | 454 | 526 | 1,237 | 747 |
Derivative, Gain on Derivative, Net | 454 | 526 | 1,237 | 747 |
Foreign Currency Derivatives | Net Sales | Designated As Hedging | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total net gain reclassified from AOCI to earnings | $ 70 | $ (63) | $ 96 | $ (97) |
Derivative Instrument, Gain (Loss) Reclassified from AOCI into Income, Effective Portion, Statement of Income or Comprehensive Income [Extensible Enumeration] | Revenues | Revenues | Revenues | Revenues |
Foreign Currency Derivatives | Cost of Goods Sold | Designated As Hedging | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total net gain reclassified from AOCI to earnings | $ 384 | $ 589 | $ 1,141 | $ 844 |
Derivative Instrument, Gain (Loss) Reclassified from AOCI into Income, Effective Portion, Statement of Income or Comprehensive Income [Extensible Enumeration] | Cost of Goods and Services Sold | Cost of Goods and Services Sold | Cost of Goods and Services Sold | Cost of Goods and Services Sold |
Interest Rate Swap | Designated As Hedging | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, Gain on Derivative, Net | $ 371 | $ 441 | $ 776 | $ 817 |
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Interest Expense, Operating and Nonoperating | Interest Expense, Operating and Nonoperating | Interest Expense, Operating and Nonoperating | Interest Expense, Operating and Nonoperating |
Cross-Currency Swap | Designated As Hedging | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, Gain on Derivative, Net | $ 95 | $ 136 | $ 189 | $ 295 |
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Interest Expense, Operating and Nonoperating | Interest Expense, Operating and Nonoperating | Interest Expense, Operating and Nonoperating | Interest Expense, Operating and Nonoperating |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Foreign currency transaction loss | ||||
Foreign currency transaction losses | $ 629 | $ 2,750 | $ 2,136 | $ 2,683 |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) - Components of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Changes in AOCI, Net | ||||
Total accumulated other comprehensive income (loss), beginning of period | $ 4,264 | |||
Total accumulated other comprehensive income (loss), end of period | $ 775 | 775 | ||
Changes in Fair Market Value of Derivatives | ||||
Changes in AOCI, Gross | ||||
Gross, beginning of the period | 4,201 | $ 4,403 | 3,252 | $ 3,911 |
Gross, gain (loss) recognized in OCI | (1,350) | 2,046 | 788 | 3,135 |
Gross, (gain) loss reclassified from AOCI to earnings | (825) | (967) | (2,014) | (1,564) |
Gross, ending balance | 2,026 | 5,482 | 2,026 | 5,482 |
Changes in AOCI, Income tax benefit (expense) | ||||
Income tax benefit (expense), beginning of period | (967) | (1,012) | (749) | (899) |
Income tax benefit (expense), gain (loss) recognized in OCI | 310 | (471) | (181) | (721) |
Income tax benefit (expense), (gain) loss reclassified from AOCI to earnings | 190 | 222 | 463 | 359 |
Income tax benefit (expense), ending of period | (467) | (1,261) | (467) | (1,261) |
Changes in AOCI, Net | ||||
Total accumulated other comprehensive income (loss), beginning of period | 3,234 | 3,391 | 2,503 | 3,012 |
Gain (loss) recognized in OCI, net | (1,040) | 1,575 | 607 | 2,414 |
(Gain) Loss reclassified from AOCI to earnings, net | (635) | (745) | (1,551) | (1,205) |
Total accumulated other comprehensive income (loss), end of period | 1,559 | 4,221 | 1,559 | 4,221 |
Changes in Unrealized Pension Cost | ||||
Changes in AOCI, Gross | ||||
Gross, beginning of the period | (1,057) | (1,226) | (1,126) | (1,179) |
Gross, gain (loss) recognized in OCI | 0 | 0 | 0 | 0 |
Gross, (gain) loss reclassified from AOCI to earnings | 40 | 7 | 109 | (40) |
Gross, ending balance | (1,017) | (1,219) | (1,017) | (1,219) |
Changes in AOCI, Income tax benefit (expense) | ||||
Income tax benefit (expense), beginning of period | 437 | 389 | 442 | 376 |
Income tax benefit (expense), gain (loss) recognized in OCI | 0 | 0 | 0 | 0 |
Income tax benefit (expense), (gain) loss reclassified from AOCI to earnings | (5) | (3) | (10) | (10) |
Income tax benefit (expense), ending of period | 432 | 386 | 432 | 386 |
Changes in AOCI, Net | ||||
Total accumulated other comprehensive income (loss), beginning of period | (620) | (837) | (684) | (803) |
Gain (loss) recognized in OCI, net | 0 | 0 | 0 | 0 |
(Gain) Loss reclassified from AOCI to earnings, net | 35 | 4 | 99 | (30) |
Total accumulated other comprehensive income (loss), end of period | (585) | (833) | (585) | (833) |
Cumulative Translation Adjustment | ||||
Changes in AOCI, Gross | ||||
Gross, beginning of the period | 324 | (1,856) | 2,445 | (2,880) |
Gross, gain (loss) recognized in OCI | (523) | 2,159 | (2,644) | 3,183 |
Gross, (gain) loss reclassified from AOCI to earnings | 0 | 0 | 0 | 0 |
Gross, ending balance | (199) | 303 | (199) | 303 |
Changes in AOCI, Income tax benefit (expense) | ||||
Income tax benefit (expense), beginning of period | 0 | 0 | 0 | 0 |
Income tax benefit (expense), gain (loss) recognized in OCI | 0 | 0 | 0 | 0 |
Income tax benefit (expense), (gain) loss reclassified from AOCI to earnings | 0 | 0 | 0 | 0 |
Income tax benefit (expense), ending of period | 0 | 0 | 0 | 0 |
Changes in AOCI, Net | ||||
Total accumulated other comprehensive income (loss), beginning of period | 324 | (1,856) | 2,445 | (2,880) |
Gain (loss) recognized in OCI, net | (523) | 2,159 | (2,644) | 3,183 |
(Gain) Loss reclassified from AOCI to earnings, net | 0 | 0 | 0 | 0 |
Total accumulated other comprehensive income (loss), end of period | (199) | 303 | (199) | 303 |
Accumulated Other Comprehensive (Loss) Income | ||||
Changes in AOCI, Net | ||||
Total accumulated other comprehensive income (loss), beginning of period | 2,938 | 698 | 4,264 | (671) |
Gain (loss) recognized in OCI, net | (1,563) | 3,734 | (2,037) | 5,597 |
(Gain) Loss reclassified from AOCI to earnings, net | (600) | (741) | (1,452) | (1,235) |
Total accumulated other comprehensive income (loss), end of period | $ 775 | $ 3,691 | $ 775 | $ 3,691 |
Shareholders' Equity - Summary
Shareholders' Equity - Summary of Share Count and Par Value Data Related to Shareholders' Equity (Details) - $ / shares | Jun. 30, 2024 | Dec. 31, 2023 | Jun. 30, 2023 | Dec. 31, 2022 |
Preferred Stock | ||||
Preferred stock, par value per share | ||||
Preferred stock, shares authorized | 25,000,000 | 25,000,000 | ||
Preferred stock, shares outstanding | 0 | 0 | ||
Common Stock | ||||
Common stock, par value per share | ||||
Common stock, shares authorized | 75,000,000 | 75,000,000 | ||
Common stock, shares issued | 57,541,709 | 57,444,228 | ||
Common stock, shares outstanding | 30,421,790 | 30,824,248 | 31,394,377 | 31,680,890 |
Treasury stock | ||||
Treasury stock, shares held | 27,119,919 | 26,619,980 |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||||||
Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Feb. 02, 2024 | Dec. 31, 2023 | Feb. 09, 2023 | |
Equity Class Of Treasury Stock [Line Items] | |||||||||
Common stock repurchased, shares | 228,000 | 271,939 | 197,716 | 198,271 | 499,939 | 395,987 | |||
Common stock repurchased, value | $ 11,129,000 | $ 8,760,000 | $ 23,207,000 | $ 17,562,000 | |||||
Accrued repurchase | 460,000 | 460,000 | $ 359,000 | ||||||
Shares available for future purchases | $ 81,241,000 | $ 81,241,000 | |||||||
Antidilutive securities excluded from computation of earnings per share (shares) | 2,391 | 0 | 6,461 | 5,000 | |||||
Maximum | |||||||||
Equity Class Of Treasury Stock [Line Items] | |||||||||
Treasury shares authorized to be purchased | $ 100,000,000 | $ 50,000,000 |
Shareholders' Equity - Summar_2
Shareholders' Equity - Summary of Common Shares Outstanding (Details) - shares | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Roll forward of common shares outstanding | ||||||
Balance at the beginning of the year | 30,824,248 | 31,680,890 | 30,824,248 | 31,680,890 | ||
Repurchases | (228,000) | (271,939) | (197,716) | (198,271) | (499,939) | (395,987) |
Restricted share issuances | 97,481 | 109,474 | ||||
Balance at the end of the period | 30,421,790 | 31,394,377 | 30,421,790 | 31,394,377 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) $ in Thousands | Jun. 30, 2024 USD ($) Plan shares | Dec. 31, 2023 USD ($) shares |
Share-based Compensation | ||
Number of equity based compensation plans | Plan | 5 | |
Other accrued liabilities | $ 5,505 | $ 6,514 |
Cash Settled Awards | ||
Share-based Compensation | ||
Outstanding shares | shares | 48,372 | 42,062 |
Other accrued liabilities | $ 717 | $ 676 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation | $ 2,544 | $ 3,235 | ||
Service-Based RSUs | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation | $ 981 | $ 765 | 1,875 | 1,535 |
Performance and Market-based RSUs | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation | 215 | 723 | 370 | 1,357 |
Cash Settled Awards | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation | 136 | 161 | 299 | 343 |
RSUs | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation | 1,332 | 1,649 | 2,544 | 3,235 |
Income tax benefit | 306 | 379 | 585 | 744 |
Net expense | $ 1,026 | $ 1,270 | $ 1,959 | $ 2,491 |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of Unrecognized Compensation Expense related to Unvested RSUs (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2024 USD ($) | |
Service-Based RSUs | |
Share-based Compensation | |
Unrecognized compensation expense | $ 4,260 |
Weighted-average period (years) | 1 year 6 months |
Performance and Market-based RSUs | |
Share-based Compensation | |
Unrecognized compensation expense | $ 3,708 |
Weighted-average period (years) | 2 years 1 month 24 days |
RSUs | |
Share-based Compensation | |
Unrecognized compensation expense | $ 7,968 |
Weighted-average period (years) | 1 year 9 months 18 days |
Stock-Based Compensation - Su_3
Stock-Based Compensation - Summary of Status of Plans (Details) | 6 Months Ended |
Jun. 30, 2024 shares | |
2018 Plan | |
Summary of Status of Equity-Based Compensation Plans | |
Awards originally available | 2,500,000 |
Maximum potential awards outstanding | 723,377 |
RSUs and cash settled awards vested and released | 621,161 |
Awards available for grant | 1,155,462 |
2014 Plan | |
Summary of Status of Equity-Based Compensation Plans | |
Awards originally available | 1,500,000 |
Maximum potential awards outstanding | 35,100 |
2009 Plan | |
Summary of Status of Equity-Based Compensation Plans | |
Awards originally available | 3,400,000 |
Maximum potential awards outstanding | 30,000 |
2004 Plan | |
Summary of Status of Equity-Based Compensation Plans | |
Awards originally available | 6,500,000 |
Maximum potential awards outstanding | 14,545 |
Directors' Plan | |
Summary of Status of Equity-Based Compensation Plans | |
Maximum potential awards outstanding | 4,722 |
Stock-Based Compensation - Su_4
Stock-Based Compensation - Summary of Service-Based Restricted Stock Units (Details) - Service-Based RSUs | 6 Months Ended |
Jun. 30, 2024 $ / shares shares | |
Units | |
Outstanding at beginning of year - Units | shares | 280,966 |
Granted - Units | shares | 92,296 |
Vested and released - Units | shares | (55,417) |
Forfeited - Units | shares | (5,357) |
Outstanding at end of year - Units | shares | 312,488 |
Releasable - Units | shares | 141,167 |
Weighted Average Grant Date Fair Value | |
Beginning of year - Weighted Average Grant Date Fair Value | $ / shares | $ 30.36 |
Granted - Weighted Average Grant Date Fair Value | $ / shares | 43.7 |
Vested and released - Weighted Average Grant Date Fair Value | $ / shares | 37.19 |
Forfeited - Weighted Average Grant Date Fair Value | $ / shares | 42.11 |
End of year - Weighted Average Grant Date Fair Value | $ / shares | 32.89 |
Releasable - Weighted Average Grant Date Fair Value | $ / shares | $ 21.76 |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Performance and Market-Based RSUs (Details) - Performance and Market-based RSUs | 6 Months Ended |
Jun. 30, 2024 $ / shares shares | |
Units | |
Outstanding at beginning of year - Units | shares | 220,656 |
Granted - Units | shares | 75,498 |
Attained by performance - Units | shares | 55,272 |
Released - Units | shares | (112,907) |
Forfeited - Units | shares | (10,395) |
Outstanding at end of year - Units | shares | 228,124 |
Releasable - Units | shares | 0 |
Weighted Average Grant Date Fair Value | |
Beginning of year - Weighted Average Grant Date Fair Value | $ / shares | $ 36.96 |
Granted - Weighted Average Grant Date Fair Value | $ / shares | 43.77 |
Attained by performance - Weighted Average Grant Date Fair Value | $ / shares | 33.37 |
Vested and released - Weighted Average Grant Date Fair Value | $ / shares | 33.85 |
Forfeited - Weighted Average Grant Date Fair Value | $ / shares | 37.33 |
End of year - Weighted Average Grant Date Fair Value | $ / shares | 39.96 |
Releasable - Weighted Average Grant Date Fair Value | $ / shares | $ 0 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Financial assets (liabilities), measured at fair value | ||
Derivative liabilities | $ (463) | $ (747) |
Cash Flow Hedge | ||
Financial assets (liabilities), measured at fair value | ||
Derivative asset | 0 | 1,087 |
Derivative liabilities | (319) | 0 |
Foreign Currency Forward Contracts | ||
Financial assets (liabilities), measured at fair value | ||
Derivative asset | 188 | |
Recurring | Carrying Value | Designated As Hedging | Cash Flow Hedge | ||
Financial assets (liabilities), measured at fair value | ||
Contingent consideration | (2,116) | (3,764) |
Qualified replacement plan assets | 12,600 | 13,392 |
Recurring | Interest Rate Swaps | Carrying Value | Designated As Hedging | Cash Flow Hedge | ||
Financial assets (liabilities), measured at fair value | ||
Derivative asset | 2,244 | 1,827 |
Recurring | Foreign Currency Forward Contracts | Carrying Value | Designated As Hedging | Cash Flow Hedge | ||
Financial assets (liabilities), measured at fair value | ||
Derivative asset | (319) | 1,087 |
Recurring | Cross-currency Swap | Carrying Value | Designated As Hedging | Cash Flow Hedge | ||
Financial assets (liabilities), measured at fair value | ||
Derivative liabilities | (146) | (747) |
Recurring | Quoted Prices in Active Markets for Identical (Level 1) | Designated As Hedging | Cash Flow Hedge | ||
Financial assets (liabilities), measured at fair value | ||
Qualified replacement plan assets | 12,600 | 13,392 |
Recurring | Significant Other Observable Inputs (Level 2) | Interest Rate Swaps | Designated As Hedging | Cash Flow Hedge | ||
Financial assets (liabilities), measured at fair value | ||
Derivative asset | 2,244 | 1,827 |
Recurring | Significant Other Observable Inputs (Level 2) | Foreign Currency Forward Contracts | Designated As Hedging | Cash Flow Hedge | ||
Financial assets (liabilities), measured at fair value | ||
Derivative asset | (319) | 1,087 |
Recurring | Significant Other Observable Inputs (Level 2) | Cross-currency Swap | Designated As Hedging | Cash Flow Hedge | ||
Financial assets (liabilities), measured at fair value | ||
Derivative liabilities | (146) | (747) |
Recurring | Significant Unobservable Inputs (Level 3) | Designated As Hedging | Cash Flow Hedge | ||
Financial assets (liabilities), measured at fair value | ||
Contingent consideration | $ (2,116) | $ (3,764) |
Fair Value Measurements - Roll-
Fair Value Measurements - Roll-forward of the Contingent Consideration (Details) - Contingent Consideration $ in Thousands | 6 Months Ended |
Jun. 30, 2024 USD ($) | |
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |
Balance at December 31, 2023 | $ 3,764 |
Change in fair value | (572) |
Cash Paid | (1,076) |
Balance at June 30, 2024 | $ 2,116 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other long-term obligations | $ 3,786 | $ 5,457 |
Accrued Expenses and Other Liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other long-term obligations | $ 1,268 |
Income Taxes - Schedule of Effe
Income Taxes - Schedule of Effective Income Tax Rate (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | ||||
Effective tax rate | 17.20% | 19.80% | 17.80% | 19.50% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | ||||
Effective income tax rate | 17.20% | 19.80% | 17.80% | 19.50% |