Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2020 | Oct. 23, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2020 | |
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 Central Index Key | 0000026058 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 32,267,951 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS - UNAUDITED - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Income Statement [Abstract] | ||||
Net sales | $ 113,777 | $ 115,651 | $ 301,049 | $ 353,959 |
Cost of goods sold | 76,871 | 78,594 | 204,677 | 235,084 |
Gross Margin | 36,906 | 37,057 | 96,372 | 118,875 |
Selling, general and administrative expenses | 16,883 | 17,774 | 48,310 | 52,371 |
Research and development expenses | 5,723 | 6,806 | 18,653 | 19,854 |
Restructuring charges | 1,041 | 2,342 | 1,416 | 5,337 |
Loss (gain) on sale of assets | 0 | 11 | 0 | (111) |
Operating earnings | 13,259 | 10,124 | 27,993 | 41,424 |
Other (expense) income: | ||||
Interest expense | (857) | (812) | (2,617) | (1,745) |
Interest income | 217 | 524 | 852 | 1,396 |
Other income (expense), net | 1,617 | (2,636) | (109) | (3,646) |
Total other income (expense), net | 977 | (2,924) | (1,874) | (3,995) |
Earnings before income taxes | 14,236 | 7,200 | 26,119 | 37,429 |
Income tax expense | 3,163 | 4,478 | 6,381 | 11,345 |
Net earnings | $ 11,073 | $ 2,722 | $ 19,738 | $ 26,084 |
Earnings per share: | ||||
Basic | $ 0.34 | $ 0.08 | $ 0.61 | $ 0.80 |
Diluted | $ 0.34 | $ 0.08 | $ 0.61 | $ 0.79 |
Basic weighted – average common shares outstanding: | 32,268 | 32,642 | 32,331 | 32,748 |
Effect of dilutive securities | 241 | 425 | 270 | 417 |
Diluted weighted – average common shares outstanding: | 32,509 | 33,067 | 32,601 | 33,165 |
Cash dividends declared per share | $ 0.04 | $ 0.04 | $ 0.12 | $ 0.12 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS - UNAUDITED - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net earnings | $ 11,073 | $ 2,722 | $ 19,738 | $ 26,084 |
Other comprehensive earnings: | ||||
Changes in fair market value of derivatives, net of tax | 909 | (740) | (2,861) | (956) |
Changes in unrealized pension cost, net of tax | 1,239 | 1,017 | 3,733 | 3,065 |
Cumulative translation adjustment, net of tax | 99 | (92) | (54) | (88) |
Other comprehensive earnings | 2,247 | 185 | 818 | 2,021 |
Comprehensive earnings | $ 13,320 | $ 2,907 | $ 20,556 | $ 28,105 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Current Assets | ||
Cash and cash equivalents | $ 131,740 | $ 100,241 |
Accounts receivable, net | 76,431 | 78,008 |
Inventories, net | 41,492 | 42,237 |
Other current assets | 14,020 | 16,992 |
Total current assets | 263,683 | 237,478 |
Property, plant and equipment, net | 97,777 | 105,038 |
Operating lease assets, net | 23,727 | 24,644 |
Other Assets | ||
Prepaid pension asset | 65,115 | 62,082 |
Goodwill | 106,056 | 106,056 |
Other intangible assets, net | 76,126 | 85,215 |
Deferred income taxes | 20,595 | 19,795 |
Other | 2,774 | 3,046 |
Total other assets | 270,666 | 276,194 |
Total Assets | 655,853 | 643,354 |
Current Liabilities | ||
Accounts payable | 46,739 | 48,219 |
Operating lease obligations | 3,149 | 2,787 |
Accrued payroll and benefits | 12,437 | 9,564 |
Accrued expenses and other liabilities | 32,794 | 36,378 |
Total current liabilities | 95,119 | 96,948 |
Long-term debt | 106,300 | 99,700 |
Long-term operating lease obligations | 23,747 | 24,926 |
Long-term pension obligations | 6,446 | 6,632 |
Deferred income taxes | 6,223 | 5,637 |
Other long-term obligations | 4,052 | 4,292 |
Total Liabilities | 241,887 | 238,135 |
Commitments and Contingencies (Note 10) | ||
Shareholders’ Equity | ||
Common stock | 310,976 | 307,932 |
Additional contributed capital | 40,796 | 43,689 |
Retained earnings | 525,624 | 509,766 |
Accumulated other comprehensive loss | (90,908) | (91,726) |
Total shareholders’ equity before treasury stock | 786,488 | 769,661 |
Treasury stock | (372,522) | (364,442) |
Total shareholders’ equity | 413,966 | 405,219 |
Total Liabilities and Shareholders’ Equity | $ 655,853 | $ 643,354 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - UNAUDITED - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net earnings | $ 19,738 | $ 26,084 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||
Depreciation and amortization | 19,819 | 18,038 |
Pension and other post-retirement plan expense | 2,023 | 752 |
Stock-based compensation | 2,164 | 3,950 |
Asset impairment charges | 1,016 | 0 |
Restructuring non-cash charges | 300 | 1,100 |
Deferred income taxes | (627) | 466 |
Gain on sales of fixed assets | 0 | (111) |
(Gain) loss on foreign currency hedges, net of cash | (58) | 79 |
Changes in assets and liabilities, net of acquisition: | ||
Accounts receivable | 2,085 | 385 |
Inventories | 960 | 1,925 |
Operating lease assets | 917 | (2,454) |
Other assets | 2,446 | (3,153) |
Accounts payable | 1,423 | (3,534) |
Accrued payroll and benefits | 2,928 | (3,921) |
Income taxes payable | (2,454) | 2,540 |
Operating lease liabilities | (818) | 2,764 |
Accrued expenses and other liabilities | (2,372) | (3,962) |
Pension and other post-retirement plans | (193) | (213) |
Net cash provided by operating activities | 49,297 | 40,735 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Capital expenditures | (10,441) | (15,299) |
Proceeds from sale of assets | 0 | 137 |
Payments for acquisitions, net of cash acquired | 0 | (73,588) |
Net cash used in investing activities | (10,441) | (88,750) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Payments of long-term debt | (3,322,550) | (995,500) |
Proceeds from borrowings of long-term debt | 3,329,150 | 1,058,200 |
Purchase of treasury stock | (8,080) | (8,045) |
Dividends paid | (3,888) | (3,934) |
Taxes paid on behalf of equity award participants | (1,911) | (2,653) |
Net cash (used) in provided by financing activities | (7,279) | 48,068 |
Effect of exchange rate changes on cash and cash equivalents | (78) | 213 |
Net increase (decrease) in cash and cash equivalents | 31,499 | 266 |
Cash and cash equivalents at beginning of period | 100,241 | 100,933 |
Cash and cash equivalents at end of period | 131,740 | 101,199 |
Supplemental cash flow information: | ||
Cash paid for interest | 2,124 | 1,208 |
Cash paid for income taxes, net | 8,295 | 7,622 |
Capital expenditures incurred but not yet paid | $ 816 | $ 3,711 |
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 Earnings/(Loss) | Treasury Stock |
Beginning Balance at Dec. 31, 2018 | $ 377,929 | $ 306,697 | $ 42,820 | $ 478,847 | $ (97,739) | $ (352,696) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net earnings | 11,419 | 11,419 | ||||
Changes in fair market value of derivatives, net of tax | 78 | 78 | ||||
Changes in unrealized pension cost, net of tax | 1,022 | 1,022 | ||||
Cumulative translation adjustment, net of tax | 91 | 91 | ||||
Cash dividends | (1,315) | (1,315) | ||||
Acquired shares for treasury stock | (849) | (849) | ||||
Issued shares on vesting of restricted stock units | (2,636) | 967 | (3,603) | |||
Stock compensation | 1,154 | 1,154 | ||||
Ending Balance at Mar. 31, 2019 | 386,893 | 307,664 | 40,371 | 488,951 | (96,548) | (353,545) |
Beginning Balance at Dec. 31, 2018 | 377,929 | 306,697 | 42,820 | 478,847 | (97,739) | (352,696) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net earnings | 26,084 | |||||
Changes in fair market value of derivatives, net of tax | (956) | |||||
Changes in unrealized pension cost, net of tax | 3,065 | |||||
Cumulative translation adjustment, net of tax | (88) | |||||
Acquired shares for treasury stock | (8,045) | |||||
Ending Balance at Sep. 30, 2019 | 395,194 | 307,801 | 42,849 | 501,003 | (95,718) | (360,741) |
Beginning Balance at Mar. 31, 2019 | 386,893 | 307,664 | 40,371 | 488,951 | (96,548) | (353,545) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net earnings | 11,943 | 11,943 | ||||
Changes in fair market value of derivatives, net of tax | (294) | (294) | ||||
Changes in unrealized pension cost, net of tax | 1,026 | 1,026 | ||||
Cumulative translation adjustment, net of tax | (87) | (87) | ||||
Cash dividends | (1,309) | (1,309) | ||||
Acquired shares for treasury stock | (4,153) | (4,153) | ||||
Issued shares on vesting of restricted stock units | 111 | (111) | ||||
Stock compensation | 1,526 | 1,526 | ||||
Ending Balance at Jun. 30, 2019 | 395,545 | 307,775 | 41,786 | 499,585 | (95,903) | (357,698) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net earnings | 2,722 | 2,722 | ||||
Changes in fair market value of derivatives, net of tax | (740) | (740) | ||||
Changes in unrealized pension cost, net of tax | 1,017 | 1,017 | ||||
Cumulative translation adjustment, net of tax | (92) | (92) | ||||
Cash dividends | (1,304) | (1,304) | ||||
Acquired shares for treasury stock | (3,043) | (3,043) | ||||
Issued shares on vesting of restricted stock units | (15) | 26 | (41) | |||
Stock compensation | 1,104 | 1,104 | ||||
Ending Balance at Sep. 30, 2019 | 395,194 | 307,801 | 42,849 | 501,003 | (95,718) | (360,741) |
Beginning Balance at Dec. 31, 2019 | 405,219 | 307,932 | 43,689 | 509,766 | (91,726) | (364,442) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net earnings | 3,808 | 3,808 | ||||
Changes in fair market value of derivatives, net of tax | (4,414) | (4,414) | ||||
Changes in unrealized pension cost, net of tax | 1,285 | 1,285 | ||||
Cumulative translation adjustment, net of tax | (139) | (139) | ||||
Cash dividends | (1,298) | (1,298) | ||||
Acquired shares for treasury stock | (5,304) | (5,304) | ||||
Issued shares on vesting of restricted stock units | (1,903) | 2,166 | (4,069) | |||
Stock compensation | 212 | 212 | ||||
Ending Balance at Mar. 31, 2020 | 397,466 | 310,098 | 39,832 | 512,276 | (94,994) | (369,746) |
Beginning Balance at Dec. 31, 2019 | 405,219 | 307,932 | 43,689 | 509,766 | (91,726) | (364,442) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net earnings | 19,738 | |||||
Changes in fair market value of derivatives, net of tax | (2,861) | |||||
Changes in unrealized pension cost, net of tax | 3,733 | |||||
Cumulative translation adjustment, net of tax | (54) | |||||
Acquired shares for treasury stock | (8,080) | |||||
Ending Balance at Sep. 30, 2020 | 413,966 | 310,976 | 40,796 | 525,624 | (90,908) | (372,522) |
Beginning Balance at Mar. 31, 2020 | 397,466 | 310,098 | 39,832 | 512,276 | (94,994) | (369,746) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net earnings | 4,857 | 4,857 | ||||
Changes in fair market value of derivatives, net of tax | 644 | 644 | ||||
Changes in unrealized pension cost, net of tax | 1,209 | 1,209 | ||||
Cumulative translation adjustment, net of tax | (14) | (14) | ||||
Cash dividends | (1,292) | (1,292) | ||||
Acquired shares for treasury stock | (2,776) | (2,776) | ||||
Issued shares on vesting of restricted stock units | 855 | (855) | ||||
Stock compensation | 798 | 798 | ||||
Ending Balance at Jun. 30, 2020 | 400,892 | 310,953 | 39,775 | 515,841 | (93,155) | (372,522) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net earnings | 11,073 | 11,073 | ||||
Changes in fair market value of derivatives, net of tax | 909 | 909 | ||||
Changes in unrealized pension cost, net of tax | 1,239 | 1,239 | ||||
Cumulative translation adjustment, net of tax | 99 | 99 | ||||
Cash dividends | (1,290) | (1,290) | ||||
Issued shares on vesting of restricted stock units | (8) | 23 | (31) | |||
Stock compensation | 1,052 | 1,052 | ||||
Ending Balance at Sep. 30, 2020 | $ 413,966 | $ 310,976 | $ 40,796 | $ 525,624 | $ (90,908) | $ (372,522) |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - UNAUDITED (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Statement Of Stockholders Equity [Abstract] | ||||||||
Cash dividends declared per share (in dollars per share) | $ 0.04 | $ 0.04 | $ 0.04 | $ 0.04 | $ 0.04 | $ 0.04 | $ 0.12 | $ 0.12 |
Treasury stock, shares, acquired | 122,000 | 220,731 | 106,760 | 148,466 | 31,500 | 342,731 | 286,726 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2020 | |
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, 2019. 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. Certain reclassifications have been made to prior year amounts to conform to the current year presentation. The reclassifications had no impact on previously reported net earnings. |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Sep. 30, 2020 | |
Revenue From Contract With Customer [Abstract] | |
Revenue Recognition | NOTE 2 – Revenue Recognition The core principle of Topic 606 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 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 September 30, 2020 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 Nine months ended September 30, 2020 September 30, 2019 September 30, 2020 September 30, 2019 Transportation $ 65,277 $ 71,559 $ 164,940 $ 230,743 Industrial 24,204 19,750 65,260 57,406 Medical 10,201 10,537 32,609 29,176 Aerospace & Defense 11,038 9,025 29,416 23,536 Telecom & IT 3,057 4,780 8,824 13,098 Total $ 113,777 $ 115,651 $ 301,049 $ 353,959 |
Accounts Receivable
Accounts Receivable | 9 Months Ended |
Sep. 30, 2020 | |
Receivables [Abstract] | |
Accounts Receivable | NOTE 3 – Accounts Receivable The components of accounts receivable, net are as follows: As of September 30, December 31, 2020 2019 Accounts receivable, gross $ 77,250 $ 78,269 Less: Allowance for credit losses (819 ) (261 ) Accounts receivable, net $ 76,431 $ 78,008 |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories | NOTE 4 – Inventories Inventories, net consists of the following: As of September 30, December 31, 2020 2019 Finished goods $ 9,046 $ 9,447 Work-in-process 15,237 14,954 Raw materials 23,607 23,363 Less: Inventory reserves (6,398 ) (5,527 ) Inventories, net $ 41,492 $ 42,237 |
Property, Plant and Equipment
Property, Plant and Equipment | 9 Months Ended |
Sep. 30, 2020 | |
Property Plant And Equipment [Abstract] | |
Property, Plant and Equipment | NOTE 5 – Property, Plant and Equipment Property, plant and equipment, net is comprised of the following: As of September 30, December 31, 2020 2019 Land and land improvements $ 1,095 $ 1,095 Buildings and improvements 69,007 68,350 Machinery and equipment 228,584 224,312 Less: Accumulated depreciation (200,909 ) (188,719 ) Property, plant and equipment, net $ 97,777 $ 105,038 Depreciation expense for the nine months ended September 30, 2020 $ 13,003 Depreciation expense for the nine months ended September 30, 2019 $ 12,657 |
Retirement Plans
Retirement Plans | 9 Months Ended |
Sep. 30, 2020 | |
Compensation And Retirement Disclosure [Abstract] | |
Retirement Plans | NOTE 6 – Retirement Plans Pension Plans Net pension expense for our domestic and foreign plans included in other income (expense) in the Condensed Consolidated Statement of Earnings is as follows: Three months ended Nine months ended September 30, September 30, September 30, September 30, 2020 2019 2020 2019 Net pension expense $ 666 $ 250 $ 1,996 $ 749 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 September 30, September 30, September 30, September 30, 2020 2019 2020 2019 Service cost $ — $ — $ 8 $ 9 Interest cost 1,443 1,931 6 8 Expected return on plan assets (1) (2,454 ) (3,046 ) (3 ) (4 ) Amortization of loss 1,622 1,311 44 41 Total expense, net $ 611 $ 196 $ 55 $ 54 (1) Expected return on plan assets is net of expected investment expenses and certain administrative expenses. Domestic Pension Plans Foreign Pension Plans Nine Months Ended Nine Months Ended September 30, September 30, September 30, September 30, 2020 2019 2020 2019 Service cost $ — $ — $ 23 $ 27 Interest cost 4,329 5,793 19 23 Expected return on plan assets (1) (7,362 ) (9,140 ) (10 ) (13 ) Amortization of loss 4,866 3,934 131 125 Total expense, net $ 1,833 $ 587 $ 163 $ 162 (1) Expected return on plan assets is net of expected investment expenses and certain administrative expenses. In February 2020, the CTS Board of Directors authorized management to explore termination of our U.S. based pension plan ("Plan") at management's discretion, subject to certain conditions. On June 1, 2020, we entered the Fifth Amendment to the Plan whereby we set an effective termination date of July 31, 2020. The Plan termination process is expected to take twelve to eighteen months and requires certain approvals from both the Internal Revenue Service and Pension Benefit Guaranty Corporation. Once we receive such approvals, an insurance company will be selected to purchase annuities and fulfill the obligations of the Plan including administering payments to participants. Upon settlement of the pension liabilities, we will reclassify the related pension losses currently recorded in accumulated other comprehensive loss into earnings. We do not expect any cash contributions from the Company to the Plan as a result of this termination because plan assets exceed estimated liabilities. Other Post-retirement Benefit Plan Net post-retirement expense for our other post-retirement plan includes the following components: Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, 2020 2019 2020 2019 Service cost $ 1 $ — $ 1 $ 1 Interest cost 30 42 90 127 Amortization of gain (20 ) (42 ) (64 ) (125 ) Total expense, net $ 11 $ — $ 27 $ 3 |
Other Intangible Assets
Other Intangible Assets | 9 Months Ended |
Sep. 30, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Other Intangible Assets | NOTE 7 – Other Intangible Assets Other intangible assets, net consist of the following components: As of September 30, 2020 Gross Carrying Amount Accumulated Amortization Net Amount Customer lists/relationships $ 92,194 $ (42,753 ) $ 49,441 Technology and other intangibles 47,925 (21,240 ) 26,685 In process research and development 2,200 (2,200 ) — Other intangible assets, net $ 142,319 $ (66,193 ) $ 76,126 Amortization expense for the three months ended September 30, 2020 $ 2,253 Amortization expense for the nine months ended September 30, 2020 $ 6,816 In the third quarter of 2020, due to the restructuring actions further outlined in Note 8, we performed an interim impairment assessment. This resulted in the recognition of $2,200 of impairment charges related to in process research and development, and a revaluation of associated contingent liabilities totaling $1,900. The net impact of $300 was recorded as restructuring expense in the Condensed Consolidated Statements of Earnings. As of December 31, 2019 Gross Carrying Amount Accumulated Amortization Net Amount Customer lists/relationships $ 92,194 $ (38,682 ) $ 53,512 Technology and other intangibles 47,925 (18,422 ) 29,503 In process research and development 2,200 — 2,200 Other intangible assets, net $ 142,319 $ (57,104 ) $ 85,215 Amortization expense for the three months ended September 30, 2019 $ 1,999 Amortization expense for the nine months ended September 30, 2019 $ 5,381 Remaining amortization expense for other intangible assets as of September 30, 2020 is as follows: Amortization expense 2020 $ 2,243 2021 8,893 2022 8,657 2023 6,651 2024 6,489 Thereafter 43,193 Total amortization expense $ 76,126 |
Costs Associated with Exit and
Costs Associated with Exit and Restructuring Activities | 9 Months Ended |
Sep. 30, 2020 | |
Restructuring And Related Activities [Abstract] | |
Costs Associated with Exit and Restructuring Activities | NOTE 8 – Costs Associated with Exit and Restructuring Activities Restructuring charges are reported as a separate line within operating earnings in the Condensed Consolidated Statement of Earnings. Total restructuring charges are as follows: Three Months Ended September 30, 2020 September 30, 2019 Restructuring charges $ 1,041 $ 2,342 Nine Months Ended September 30, 2020 September 30, 2019 Restructuring charges $ 1,416 $ 5,337 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. This plan includes transitioning certain administrative functions to a shared service center, realignment of manufacturing locations, and certain other efficiency improvement actions ("September 2020 Plan"). The restructuring cost of the plan is estimated to range between $5,000 and $6,000, including workforce reduction charges, building and equipment relocation charges, other contract and asset related costs. In addition to these charges, we expect an additional $5,000 to $6,000 of other costs to be incurred related to the initiatives that would not qualify as restructuring charges. These costs would include certain related employee resource overlap and training costs as well as additional capital expenditures. Restructuring charges under this plan were $1,008 during the three and nine months ended September 30, 2020. The total restructuring liability related to the September 2020 Plan was $583 at September 30, 2020. June 2016 Plan In June 2016, we announced plans to restructure operations by phasing out production at our Elkhart, IN facility and transitioning it into a research and development center supporting our global operations ("June 2016 Plan"). Additional organizational changes were also implemented in various other locations. In 2017, we revised this plan to include an additional $1,100 in planned costs related to the relocation of our corporate headquarters in Lisle, IL and our plant in Bolingbrook, IL, both of which have now been consolidated into a single facility. Restructuring charges under this plan, which is substantially complete, were $0 and $671 during the three months ended September 30, 2020 and 2019, respectively. Restructuring charges under this plan were $(32) and $3,914 during the nine months ended September 30, 2020 and 2019, respectively. The total restructuring liability related to the June 2016 Plan was $23 at September 30, 2020 and $233 at December 31, 2019. Additional costs related to production line movements, equipment charges, and other costs will be expensed as incurred. The following table displays the planned restructuring charges associated with the June 2016 Plan as well as a summary of the actual costs incurred through September 30, 2020: Actual costs Planned incurred through June 2016 Plan Costs September 30, 2020 Workforce reduction $ 3,075 $ 3,312 Building and equipment relocation 9,025 10,530 Other charges (1) 1,300 2,156 Total restructuring charges $ 13,400 $ 15,998 (1) Other charges includes the effects of currency translation, non-cash asset write-downs and other charges. April 2014 Plan In April 2014, we announced plans to restructure our operations and consolidate our Canadian operations into other existing facilities as part of our overall plan to simplify our business model and rationalize our global footprint (“April 2014 Plan”). These restructuring actions were completed in 2015. Restructuring charges associated with this plan were $ (248) Other Restructuring Activities From time to time we undertake other restructuring activities that are not part of a formal plan. During the three and nine months ended September 30, 2020, we incurred restructuring charges of $33 and $440, respectively, primarily relating to workforce reduction actions. During the three and nine months ended September 30, 2019, we incurred restructuring charges of $1,671 for exit and disposal activities at three facilities, of which $800 was related to a lease termination charge resulting from our acquisition of Quality Thermistor, Inc. (see Note 19, “Business Acquisitions”) and $871 was related to workforce and building relocation costs at two foreign facilities. The total remaining restructuring liability associated with these actions was $14 at September 30, 2020 and $1,057 at December 31, 2019. The following table displays the restructuring liability activity included in Accrued expenses and other liabilities for all plans for the nine months ended September 30, 2020: Restructuring liability at January 1, 2020 $ 1,993 Restructuring charges 1,416 Cost paid (1,382 ) Other activity (1) (533 ) Restructuring liability at September 30, 2020 $ 1,494 (1) Other activity includes the effects of currency translation, non-cash asset write-downs and other charges that do not flow through restructuring expense. |
Accrued Liabilities
Accrued Liabilities | 9 Months Ended |
Sep. 30, 2020 | |
Accrued Liabilities Current [Abstract] | |
Accrued Liabilities | NOTE 9 – Accrued Liabilities The components of Accrued expenses and other liabilities are as follows: As of September 30, December 31, 2020 2019 Accrued product related costs $ 3,661 $ 2,950 Accrued income taxes 5,564 7,903 Accrued property and other taxes 1,914 1,574 Accrued professional fees 1,242 1,599 Accrued customer related liabilities 4,144 4,391 Dividends payable 1,291 1,299 Remediation reserves 9,337 11,444 Derivative liabilities 1,287 — Other accrued liabilities 4,354 5,218 Total accrued expenses and other liabilities $ 32,794 $ 36,378 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 10 – Commitments and Contingencies Certain processes in the manufacture of our current and past products create by-products classified as hazardous waste. We have been notified by the U.S. Environmental Protection Agency, state environmental agencies, and in some cases, groups of potentially responsible parties, that we may be potentially liable for environmental contamination at several sites currently and formerly owned or operated by us. Two of those sites, Asheville, North Carolina and Mountain View, California, are designated National Priorities List sites under the U.S. Environmental Protection Agency’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 September 30, December 31, 2020 2019 Balance at beginning of period $ 11,444 $ 11,274 Remediation expense 1,265 2,602 Net remediation payments (3,408 ) (2,455 ) Other activity (1) 36 23 Balance at end of the period $ 9,337 $ 11,444 (1) 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 | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Debt | NOTE 11 - Debt Long-term debt was comprised of the following: As of September 30, December 31, 2020 2019 Total credit facility $ 300,000 $ 300,000 Balance outstanding 106,300 99,700 Standby letters of credit 1,740 1,800 Amount available, subject to covenant restrictions $ 191,960 $ 198,500 Weighted-average interest rate 2.00 % 3.25 % Commitment fee percentage per annum 0.25 % 0.23 % On February 12, 2019, we entered an amended and restated five-year The revolving credit facility includes a swing line sublimit of $15,000 and a letter of credit sublimit of $10,000. Borrowings under the revolving credit facility bear interest at the base rate defined in the Credit Agreement. We also pay a quarterly commitment fee on the unused portion of the revolving credit facility. The commitment fee ranges from 0.20% to 0.30% based on our total leverage ratio. The Credit Agreement requires, among other things, that we comply with a maximum total leverage ratio and a minimum fixed charge coverage ratio. Failure to comply with these covenants could reduce the borrowing availability under the credit facility. We were compliant with all debt covenants at September 30, 2020. The Credit Agreement 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, it contains restrictions limiting our ability to: dispose of assets; incur certain additional debt; repay other debt or amend subordinated debt instruments; create liens on assets; make investments, loans or advances; make acquisitions or engage in mergers or consolidations; engage in certain transactions with our subsidiaries and affiliates; and make stock repurchases and dividend payments. Interest rates on the credit facility fluctuate based upon the LIBOR and the Company’s quarterly total leverage ratio. We have debt issuance costs related to our long-term debt that are being amortized using the straight-line method over the life of the debt. Amortization expense for three and nine months ended September 30, 2020 and 2019 was approximately $42 and $126 and $42 and $121, respectively. These costs are included in interest expense in our Condensed Consolidated Statement of Earnings. We use interest rate swaps to convert the revolving credit facility's variable rate of interest into a fixed rate on a portion of the debt as described more fully in Note 12 "Derivative Financial Instruments". These swaps are treated as cash flow hedges and consequently, the changes in fair value were recorded in other comprehensive earnings. |
Derivative Financial Instrument
Derivative Financial Instruments | 9 Months Ended |
Sep. 30, 2020 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Note 12 - 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 and interest rate swaps to manage our exposure to these risks. The use of derivative financial instruments exposes the Company to credit risk, which relates to the risk of nonperformance by a counterparty to the derivative contracts. We manage our credit risk by entering 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 (loss) income 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 (loss) income to other income (expense). 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. 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 September 30, 2020, we had a net unrealized loss of $458 in accumulated other comprehensive (loss) income, of which $425 is expected to be reclassified to earnings within the next 12 months. At September 30, 2019 we had a net unrealized gain of $507 in accumulated other comprehensive (loss) income. The notional amount of foreign currency forward contracts outstanding was $17,015 at September 30, 2020. 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 September 30, 2020, we have agreements to fix interest rates on $50,000 of long-term debt through February 2024. 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 losses that are reported in accumulated other comprehensive (loss) income that are expected to be reclassified into earnings within the next twelve months is approximately $517. The location and fair values of derivative instruments designated as hedging instruments in the Condensed Consolidated Balance Sheets as of September 30, 2020, are shown in the following table: As of September 30, December 31, 2020 2019 Interest rate swaps reported in Other current assets $ — $ 82 Interest rate swaps reported in Accrued liabilities $ (671 ) $ — Interest rate swaps reported in Other long-term obligations $ (1,789 ) $ (78 ) Foreign currency hedges reported in Other current assets $ — $ 580 Foreign currency hedges reported in Accrued liabilities $ (615 ) $ — 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 The effect of derivative instruments on the Condensed Consolidated Statements of Earnings is as follows: Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, 2020 2019 2020 2019 Foreign Exchange Contracts: Amounts reclassified from AOCI to earnings: Net sales $ (78 ) $ — $ (5 ) $ — Cost of goods sold (407 ) 286 (678 ) 562 Selling, general and administrative expense — 23 (5 ) 62 Total (loss) gain reclassified from AOCI to earnings (485 ) 309 (688 ) 624 Gain recognized in other expense for hedge ineffectiveness — — 3 — Total derivative (loss) gain on foreign exchange contracts recognized in earnings $ (485 ) $ 309 $ (685 ) $ 624 Interest Rate Swaps: (Expense) benefit recorded in Interest expense $ (171 ) $ 117 $ (242 ) $ 430 Total (losses) gains on derivatives $ (656 ) $ 426 $ (927 ) $ 1,054 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive (Loss) Income | 9 Months Ended |
Sep. 30, 2020 | |
Equity [Abstract] | |
Accumulated Other Comprehensive (Loss) Income | NOTE 13 – Accumulated Other Comprehensive (Loss) Income Shareholders’ equity includes certain items classified as accumulated other comprehensive (loss) income (“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 and foreign currency forward contracts used to hedge our exposure to changes in exchange rates affecting certain revenues and costs denominated in foreign currencies. These hedges are designated as cash flow hedges, and we have deferred income statement recognition of gains and losses until the hedged transactions occur, at which time amounts are reclassified into earnings. Further information related to our derivative financial instruments is included in Note 12 - Derivative Financial Instruments and Note 16 – 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 6 – 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. 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 gains for the three and nine months ended September 30, 2020 were $2,326 and $1,947, respectively and transaction losses for the three and nine months ended September 30, 2019 were $2,473 and $2,828, respectively, which have been included in other income (expense) in the Condensed Consolidated Statement of Earnings. The components of accumulated other comprehensive (loss) income for the three months ended September 30, 2020 are as follows: Loss As of Gain (Loss) Reclassified As of June 30, Recognized from AOCI September 30, 2020 in OCI to Earnings 2020 Changes in fair market value of hedges: Gross $ (4,239 ) $ 525 $ 656 $ (3,058 ) Income tax benefit (expense) 978 (122 ) (150 ) 706 Net (3,261 ) 403 506 (2,352 ) Changes in unrealized pension cost: Gross (120,906 ) — 1,606 (119,300 ) Income tax benefit (expense) 33,278 — (367 ) 32,911 Net (87,628 ) — 1,239 (86,389 ) Cumulative translation adjustment: Gross (2,266 ) 99 — (2,167 ) Income tax benefit — — — — Net (2,266 ) 99 — (2,167 ) Total accumulated other comprehensive (loss) income $ (93,155 ) $ 502 $ 1,745 $ (90,908 ) The components of accumulated other comprehensive (loss) income for the three months ended September 30, 2019, are as follows: (Gain) Loss As of Gain (Loss) Reclassified As of June 30, Recognized from AOCI September 30, 2019 in OCI to Earnings 2019 Changes in fair market value of hedges: Gross $ 1,036 $ (529 ) $ (426 ) $ 81 Income tax (expense) benefit (234 ) 119 96 (19 ) Net 802 (410 ) (330 ) 62 Changes in unrealized pension cost: Gross (129,810 ) — 1,313 (128,497 ) Income tax benefit (expense) 35,297 — (296 ) 35,001 Net (94,513 ) — 1,017 (93,496 ) Cumulative translation adjustment: Gross (2,287 ) (89 ) — (2,376 ) Income tax benefit (expense) 95 (3 ) — 92 Net (2,192 ) (92 ) — (2,284 ) Total accumulated other comprehensive (loss) income $ (95,903 ) $ (502 ) $ 687 $ (95,718 ) The components of accumulated other comprehensive (loss) income for the nine months ended September 30, 2020 , are as follows: Loss As of Loss Reclassified As of December 31, Recognized from AOCI September 30, 2019 in OCI to Earnings 2020 Changes in fair market value of hedges: Gross $ 659 $ (4,647 ) 930 $ (3,058 ) Income tax (expense) benefit (150 ) 1,059 (203 ) 706 Net 509 (3,588 ) 727 (2,352 ) Changes in unrealized pension cost: Gross (124,140 ) — 4,840 (119,300 ) Income tax benefit (expense) 34,018 — (1,107 ) 32,911 Net (90,122 ) — 3,733 (86,389 ) Cumulative translation adjustment: Gross (2,211 ) 44 — (2,167 ) Income tax benefit (expense) 98 (98 ) — — Net (2,113 ) (54 ) — (2,167 ) Total accumulated other comprehensive (loss) income $ (91,726 ) $ (3,642 ) $ 4,460 $ (90,908 ) The components of accumulated other comprehensive (loss) income for the nine months ended September 30, 2019, are as follows: Loss As of Gain Reclassified As of December 31, Recognized from AOCI September 30, 2018 in OCI to Earnings 2019 Changes in fair market value of hedges: Gross $ 1,316 $ (181 ) $ (1,054 ) $ 81 Income tax (expense) benefit (298 ) 41 238 (19 ) Net 1,018 (140 ) (816 ) 62 Changes in unrealized pension cost: Gross (132,454 ) — 3,957 (128,497 ) Income tax benefit (expense) 35,893 — (892 ) 35,001 Net (96,561 ) — 3,065 (93,496 ) Cumulative translation adjustment: Gross (2,291 ) (85 ) — (2,376 ) Income tax benefit 95 (3 ) — 92 Net (2,196 ) (88 ) — (2,284 ) Total accumulated other comprehensive (loss) income $ (97,739 ) $ (228 ) $ 2,249 $ (95,718 ) |
Shareholders' Equity
Shareholders' Equity | 9 Months Ended |
Sep. 30, 2020 | |
Stockholders Equity Note [Abstract] | |
Shareholders' Equity | NOTE 14 – Shareholders’ Equity Share count and par value data related to shareholders’ equity are as follows: As of September 30, December 31, 2020 2019 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 57,067,574 56,929,298 Shares outstanding 32,267,951 32,472,406 Treasury stock Shares held 24,799,623 24,456,892 On February 7, 2019, the Board of Directors authorized a new stock repurchase program with a maximum dollar limit of $25,000 in stock repurchases, which replaced the previous program. During the nine months ended September 30, 2020 and 2019, 342,731 and 286,726 shares of common stock were repurchased for $8,080 and $8,045, respectively. Approximately $5,740 is available for future purchases. A roll-forward of common shares outstanding is as follows: Nine months ended September 30, September 30, 2020 2019 Balance at the beginning of the year 32,472,406 32,750,727 Repurchases (342,731 ) (286,726 ) Restricted share issuances 138,276 137,888 Balance at the end of the period 32,267,951 32,601,889 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 nine months ended September 30, 2020 and 2019 were 68,198 and 20,273, respectively. There were no anti-dilutive awards outstanding for the three months ended September 30, 2020 and the three months ended September 30, 2019. |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | NOTE 15 - Stock-Based Compensation At September 30, 2020, 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 & Incentive 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 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 Nine months ended September 30, September 30, September 30, September 30, 2020 2019 2020 2019 Service-based RSUs $ 580 $ 618 $ 1,939 $ 1,712 Performance-based RSUs 472 486 123 2,072 Cash-settled RSUs 67 53 102 166 Total $ 1,119 $ 1,157 $ 2,164 $ 3,950 Income tax benefit 257 262 497 893 Net expense $ 862 $ 895 $ 1,667 $ 3,057 The following table summarizes the unrecognized compensation expense related to non-vested RSUs by type and the weighted-average period in which the expense is to be recognized: Unrecognized Compensation Weighted- Expense at Average September 30, 2020 Period Service-based RSUs $ 1,989 1.43 Performance-based RSUs 2,311 1.90 Total $ 4,300 1.68 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 September 30, 2020: 2018 Plan 2014 Plan 2009 Plan 2004 Plan Directors' Plan Awards originally available 2,500,000 1,500,000 3,400,000 6,500,000 N/A Performance-based options outstanding — — — — — Maximum potential RSU and cash settled awards outstanding 495,246 179,528 75,200 35,952 5,522 Maximum potential awards outstanding 495,246 179,528 75,200 35,952 5,522 RSUs and cash settled awards vested and released 36,471 — — — — Awards available for grant 1,968,283 — — — — Service-Based Restricted Stock Units The following table summarizes the service-based RSU activity for the nine months ended September 30, 2020: Units Weighted Average Grant Date Fair Value Outstanding at December 31, 2019 364,396 $ 19.87 Granted 92,996 27.73 Vested and released (91,762 ) 22.76 Forfeited (13,997 ) 28.70 Outstanding at September 30, 2020 351,633 $ 20.84 Releasable at September 30, 2020 185,974 $ 14.63 Performance and Market-Based Restricted Stock Units The following table summarizes the performance and market-based RSU activity for the nine months ended September 30, 2020: Units Weighted Average Grant Date Fair Value Outstanding at December 31, 2019 217,229 $ 27.73 Granted 126,521 28.37 Attained by performance 38,820 23.84 Released (111,838 ) 23.74 Forfeited (40,673 ) 29.34 Outstanding at September 30, 2020 230,059 $ 28.94 Releasable at September 30, 2020 — $ — The following table summarizes each grant of performance awards outstanding at September 30, 2020. Description Grant Date Vesting Year Vesting Dependency Target Units Outstanding Maximum Number of Units to be Granted 2018 - 2020 Performance RSUs February 8, 2018 2020 35% RTSR, 35% sales growth, 30% operating cash flow 22,082 44,164 2018 - 2020 Performance RSUs February 16, 2018 2020 35% RTSR, 35% sales growth, 30% operating cash flow 31,820 63,640 2019 - 2021 Performance RSUs February 7, 2019 2021 35% RTSR, 35% sales growth, 30% operating cash flow 50,456 100,912 2019 Supplemental Performance RSUs February 7, 2019 2021 Succession Planning Targets 6,945 13,890 2020 - 2022 QTI Performance RSUs September 24, 2019 2022 50% EBITDA growth, 50% Sales growth 1,750 3,500 2020 - 2022 Performance RSUs February 6, 2020 2022 25% RTSR, 40% sales growth, 35% operating cash flow 63,006 126,012 Focus 2025 Performance RSUs April 23, 2020 2024 Cumulative revenues of $750 million over a trailing four-quarter period 54,000 54,000 Total 230,059 406,118 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 September 30, 2020 and December 31, 2019 we had 33,697 and 17,271 cash-settled RSUs outstanding, respectively. At September 30, 2020 and December 31, 2019, liabilities of $221 and $353, respectively, were included in Accrued expenses and other liabilities on our Condensed Consolidated Balance Sheets. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | NOTE 16 — Fair Value Measurements 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. These derivative financial instruments are measured at fair value on a recurring basis. Due to changes in interest rates and foreign exchange rates, these fair values fluctuated significantly during the second and third quarters and may continue to fluctuate based on market conditions and other factors. The table below summarizes our financial liabilities that were measured at fair value on a recurring basis at September 30, 2020: Quoted Prices Liability in Active Significant Carrying Markets for Other Significant Value at Identical Observable Unobservable September 30, Instruments Inputs Inputs 2020 (Level 1) (Level 2) (Level 3) Interest rate swaps $ (2,460 ) $ — $ (2,460 ) $ — Foreign currency hedges $ (615 ) $ — $ (615 ) $ — The table below summarizes the financial assets that were measured at fair value on a recurring basis as of December 31, 2019: Quoted Prices Asset in Active Significant Carrying Markets for Other Significant Value at Identical Observable Unobservable December 31, Instruments Inputs Inputs 2019 (Level 1) (Level 2) (Level 3) Interest rate swaps $ 4 $ — $ 4 $ — Foreign currency hedges $ 580 $ — $ 580 $ — 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. 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 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. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 17 — Income Taxes The effective tax rates for the three and nine months ended September 30, 2020 and 2019 are as follows: Three months ended Nine months ended September 30, September 30, September 30, September 30, 2020 2019 2020 2019 Effective tax rate 22.2 % 62.2 % 24.4 % 30.3 % Our effective income tax rate was 22.2% and 62.2% in the third quarters of 2020 and 2019, respectively. This decrease is primarily attributed to the change in the mix of earnings by jurisdiction and the 2019 increase to reserves for uncertain tax position associated with the company’s operations in China. The third quarter 2020 tax rate was higher than the U.S. statutory federal tax rate primarily due to foreign withholding taxes, state taxes and foreign earnings that are taxed at higher rates. Our effective income tax rate was 24.4%% and 30.3% in the first nine months of 2020 and 2019, respectively. This decrease is primarily attributed to the change in the mix of earnings by jurisdiction, decreases in uncertain tax position offset by the establishment of valuation allowance on certain U.S. tax credits and the Company’s decision to no longer permanently reinvest the earnings of its Taiwan subsidiary. The tax rate in the first nine months of 2020 was higher than the U.S statutory federal tax rate primarily due to the establishment of valuation allowances on certain U.S. tax credits and the Company’s decision to no longer permanently reinvest the earnings of its Taiwan subsidiary. The tax rate in the first nine months of 2019 was higher than the U.S. statutory federal tax rate primarily due to an increase to reserves for uncertain tax positions associated with the Company’s operations in China and foreign earnings that are taxed at higher rates. |
Leases
Leases | 9 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Leases | NOTE 18 — Leases We lease certain land, buildings and equipment under non-cancellable operating leases used in our operations. Operating lease assets represent our right to use an underlying asset for the lease term. Operating lease liabilities represent the present value of lease payments over the lease term, discounted using an estimate of our secured incremental borrowing rate because none of our leases contain a rate implicit in the lease arrangement. In accordance with FASB Staff Q&A - Topic 842 and Topic 840: Accounting for Lease Concessions Related to the Effects of the COVID-19 Pandemic ("FASB Staff Q&A") issued in April 2020, we have elected to account for any lease concessions resulting directly from COVID-19 as if the enforceable rights and obligations for the concessions existed in the respective contracts at lease inception and as such we will not account for any concession as a lease modification. Guidance from the FASB Staff Q&A provided methods to account for rent deferrals which include the option to treat the lease as if no changes to the lease contract were made or to treat deferred payments as variable lease payments. The FASB Staff Q&A allows entities to select the most practical approach and does not require the same approach be applied consistently to all leases. As a result, we have accounted for lease deferrals as if no changes to the lease contract were made and will continue to recognize lease expense, on a straight-line basis, during the deferral periods. During the three and nine months ended September 30, 2020, these rent concessions related to COVID-19 were not material. Components of lease expense for the three and nine months ended September 30, 2020 were as follows: Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, 2020 2019 2020 2019 Operating lease cost $ 1,189 $ 1,128 $ 3,578 $ 3,197 Short-term lease cost 471 43 808 292 Total lease cost $ 1,660 $ 1,171 $ 4,386 $ 3,489 Supplemental cash flow information related to leases was as follows: Nine Months Ended September 30, September 30, 2020 2019 Cash paid for amounts included in the measurement of lease liabilities $ 3,476 $ 2,887 Leased assets obtained in exchange for new operating lease liabilities $ 1,299 $ 2,961 Supplemental balance sheet information related to leases was as follows: As of September 30, December 31, 2020 2019 Balance Sheet Classification: Operating lease obligations $ 3,149 $ 2,787 Long-term operating lease obligations 23,747 24,926 Total lease liabilities $ 26,896 $ 27,713 Weighted-average remaining lease terms (years) 8.16 9.04 Weighted-average discount rate 6.45 % 6.54 % Remaining maturity of our existing lease liabilities as of September 30, 2020 is as follows: Operating Leases (1) 2020 $ 1,183 2021 4,728 2022 4,589 2023 4,213 2024 4,075 Thereafter 16,950 Total $ 35,738 Less: interest (8,842 ) Present value of lease liabilities $ 26,896 (1) |
Business Acquisitions
Business Acquisitions | 9 Months Ended |
Sep. 30, 2020 | |
Business Combinations [Abstract] | |
Business Acquisitions | NOTE 19 – Business Acquisitions On July 31, 2019, we acquired 100% of the outstanding shares of Quality Thermistor, Inc. ("QTI") for $75 million plus a contingent earn out of up to $5 million based on sales performance objectives. The purchase price included adjustments for debt assumed and changes in working capital. QTI, doing business as QTI Sensing Solutions, is a leading designer and manufacturer of high-quality temperature sensors serving original equipment manufacturers with mission-critical applications in the industrial, aerospace, defense and medical markets. This acquisition provided us with a new core temperature sensing technology that expands our sensing product portfolio, while increasing our presence in the industrial and medical markets. The final purchase price of $73,906 was allocated to the fair values of assets and liabilities acquired as of July 31, 2019. The following table summarizes the consideration paid and 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 $567 $ 72,850 Contingent consideration 1,056 Purchase price $ 73,906 Fair Values at July 31, 2019 Current assets $ 6,221 Property, plant and equipment 2,567 Other assets 29 Goodwill 34,999 Intangible assets 32,800 Fair value of assets acquired 76,616 Less fair value of liabilities acquired (2,710 ) Purchase price $ 73,906 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 within our existing business, access to new customers, and potential cost savings and synergies. Goodwill related to the acquisition is expected to be deductible for tax purposes. The contingent earn out was payable in cash upon the achievement of a revenue performance target for the year ending December 31, 2019. The Company recorded contingent consideration for the earn out of $1,056 based on the achievement performance target for the full year 2019 results. This amount is reflected as an addition to the purchase price. The following table summarizes the carrying amounts and weighted average lives of the acquired intangible assets: Carrying Value Weighted Average Amortization Period Customer lists/relationships $ 31,000 15.0 Technology and other intangibles 1,800 5.0 Total $ 32,800 |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2020 | |
Recent Accounting Pronouncements [Abstract] | |
Recent Accounting Pronouncements | NOTE 20 — Recent Accounting Pronouncements Accounting Pronouncements Recently Adopted ASU No. 2018-13 "Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement" In August 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update ("ASU") No. 2018-13 " Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement ASU No. 2016-16 "Income Taxes (Topic 740) Intra-Entity Transfers of Assets Other Than Inventory" In October 2016, the FASB issued ASU No. 2016-16, " Intra-Entity Transfers of Assets Other Than Inventory ASU 2016-13 " Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments Recently Issued Accounting Pronouncements ASU No. 2020-04 "Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting" In March 2020, the FASB issued ASU 2020-04, “ Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting 12, 2020 through December 31, 2022, and an entity may elect to apply ASU 2020-04 for contract modifications by Topic or Industry Subtopic as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020, or prospectively from a date within an interim period that includes or is subsequent to March 12, 2020, up to the date that the financial statements are available to be issued. We are currently evaluating the potential impact of adopting this guidance on our consolidated financial statements. ASU No. 2019-12 "Simplifying the Accounting for Income Taxes" In December 2019, the FASB issued ASU 2019-12, Simplifying the Accounting for Income Taxes ASU No. 2018-14 "Compensation - Retirement Benefits - Defined Benefit Plans - General" In August 2018, the FASB issued ASU No. 2018-14, " Compensation - Retirement Benefits - Defined Benefit Plans - General |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
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, 2019. 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. Certain reclassifications have been made to prior year amounts to conform to the current year presentation. The reclassifications had no impact on previously reported net earnings. |
Recent Accounting Pronouncements | Accounting Pronouncements Recently Adopted ASU No. 2018-13 "Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement" In August 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update ("ASU") No. 2018-13 " Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement ASU No. 2016-16 "Income Taxes (Topic 740) Intra-Entity Transfers of Assets Other Than Inventory" In October 2016, the FASB issued ASU No. 2016-16, " Intra-Entity Transfers of Assets Other Than Inventory ASU 2016-13 " Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments Recently Issued Accounting Pronouncements ASU No. 2020-04 "Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting" In March 2020, the FASB issued ASU 2020-04, “ Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting 12, 2020 through December 31, 2022, and an entity may elect to apply ASU 2020-04 for contract modifications by Topic or Industry Subtopic as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020, or prospectively from a date within an interim period that includes or is subsequent to March 12, 2020, up to the date that the financial statements are available to be issued. We are currently evaluating the potential impact of adopting this guidance on our consolidated financial statements. ASU No. 2019-12 "Simplifying the Accounting for Income Taxes" In December 2019, the FASB issued ASU 2019-12, Simplifying the Accounting for Income Taxes ASU No. 2018-14 "Compensation - Retirement Benefits - Defined Benefit Plans - General" In August 2018, the FASB issued ASU No. 2018-14, " Compensation - Retirement Benefits - Defined Benefit Plans - General |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Revenue From Contract With Customer [Abstract] | |
Summary of Disaggregated Revenue | The following table presents revenues disaggregated by the major markets we serve: Three months ended Nine months ended September 30, 2020 September 30, 2019 September 30, 2020 September 30, 2019 Transportation $ 65,277 $ 71,559 $ 164,940 $ 230,743 Industrial 24,204 19,750 65,260 57,406 Medical 10,201 10,537 32,609 29,176 Aerospace & Defense 11,038 9,025 29,416 23,536 Telecom & IT 3,057 4,780 8,824 13,098 Total $ 113,777 $ 115,651 $ 301,049 $ 353,959 |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Receivables [Abstract] | |
Summary of Components of Accounts Receivable | The components of accounts receivable, net are as follows: As of September 30, December 31, 2020 2019 Accounts receivable, gross $ 77,250 $ 78,269 Less: Allowance for credit losses (819 ) (261 ) Accounts receivable, net $ 76,431 $ 78,008 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Inventory Disclosure [Abstract] | |
Summary of Inventories | Inventories, net consists of the following: As of September 30, December 31, 2020 2019 Finished goods $ 9,046 $ 9,447 Work-in-process 15,237 14,954 Raw materials 23,607 23,363 Less: Inventory reserves (6,398 ) (5,527 ) Inventories, net $ 41,492 $ 42,237 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Property Plant And Equipment [Abstract] | |
Summary of Property, Plant and Equipment, Net | Property, plant and equipment, net is comprised of the following: As of September 30, December 31, 2020 2019 Land and land improvements $ 1,095 $ 1,095 Buildings and improvements 69,007 68,350 Machinery and equipment 228,584 224,312 Less: Accumulated depreciation (200,909 ) (188,719 ) Property, plant and equipment, net $ 97,777 $ 105,038 Depreciation expense for the nine months ended September 30, 2020 $ 13,003 Depreciation expense for the nine months ended September 30, 2019 $ 12,657 |
Retirement Plans (Tables)
Retirement Plans (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Pension Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Net Pension Income or Postretirement Expense | Net pension expense for our domestic and foreign plans included in other income (expense) in the Condensed Consolidated Statement of Earnings is as follows: Three months ended Nine months ended September 30, September 30, September 30, September 30, 2020 2019 2020 2019 Net pension expense $ 666 $ 250 $ 1,996 $ 749 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 September 30, September 30, September 30, September 30, 2020 2019 2020 2019 Service cost $ — $ — $ 8 $ 9 Interest cost 1,443 1,931 6 8 Expected return on plan assets (1) (2,454 ) (3,046 ) (3 ) (4 ) Amortization of loss 1,622 1,311 44 41 Total expense, net $ 611 $ 196 $ 55 $ 54 (1) Expected return on plan assets is net of expected investment expenses and certain administrative expenses. Domestic Pension Plans Foreign Pension Plans Nine Months Ended Nine Months Ended September 30, September 30, September 30, September 30, 2020 2019 2020 2019 Service cost $ — $ — $ 23 $ 27 Interest cost 4,329 5,793 19 23 Expected return on plan assets (1) (7,362 ) (9,140 ) (10 ) (13 ) Amortization of loss 4,866 3,934 131 125 Total expense, net $ 1,833 $ 587 $ 163 $ 162 (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 or Postretirement Expense | Net post-retirement expense for our other post-retirement plan includes the following components: Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, 2020 2019 2020 2019 Service cost $ 1 $ — $ 1 $ 1 Interest cost 30 42 90 127 Amortization of gain (20 ) (42 ) (64 ) (125 ) Total expense, net $ 11 $ — $ 27 $ 3 |
Other Intangible Assets (Tables
Other Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Summary of other intangible assets | Other intangible assets, net consist of the following components: As of September 30, 2020 Gross Carrying Amount Accumulated Amortization Net Amount Customer lists/relationships $ 92,194 $ (42,753 ) $ 49,441 Technology and other intangibles 47,925 (21,240 ) 26,685 In process research and development 2,200 (2,200 ) — Other intangible assets, net $ 142,319 $ (66,193 ) $ 76,126 Amortization expense for the three months ended September 30, 2020 $ 2,253 Amortization expense for the nine months ended September 30, 2020 $ 6,816 As of December 31, 2019 Gross Carrying Amount Accumulated Amortization Net Amount Customer lists/relationships $ 92,194 $ (38,682 ) $ 53,512 Technology and other intangibles 47,925 (18,422 ) 29,503 In process research and development 2,200 — 2,200 Other intangible assets, net $ 142,319 $ (57,104 ) $ 85,215 Amortization expense for the three months ended September 30, 2019 $ 1,999 Amortization expense for the nine months ended September 30, 2019 $ 5,381 |
Summary of amortization expense remaining for other intangible assets | Remaining amortization expense for other intangible assets as of September 30, 2020 is as follows: Amortization expense 2020 $ 2,243 2021 8,893 2022 8,657 2023 6,651 2024 6,489 Thereafter 43,193 Total amortization expense $ 76,126 |
Costs Associated with Exit an_2
Costs Associated with Exit and Restructuring Activities (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Schedule of Restructuring Charges | Total restructuring charges are as follows: Three Months Ended September 30, 2020 September 30, 2019 Restructuring charges $ 1,041 $ 2,342 Nine Months Ended September 30, 2020 September 30, 2019 Restructuring charges $ 1,416 $ 5,337 |
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 nine months ended September 30, 2020: Restructuring liability at January 1, 2020 $ 1,993 Restructuring charges 1,416 Cost paid (1,382 ) Other activity (1) (533 ) Restructuring liability at September 30, 2020 $ 1,494 (1) Other activity includes the effects of currency translation, non-cash asset write-downs and other charges that do not flow through restructuring expense. |
June 2016 Plan | |
Schedule of Restructuring Charges | The following table displays the planned restructuring charges associated with the June 2016 Plan as well as a summary of the actual costs incurred through September 30, 2020: Actual costs Planned incurred through June 2016 Plan Costs September 30, 2020 Workforce reduction $ 3,075 $ 3,312 Building and equipment relocation 9,025 10,530 Other charges (1) 1,300 2,156 Total restructuring charges $ 13,400 $ 15,998 (1) Other charges includes the effects of currency translation, non-cash asset write-downs and other charges. |
Accrued expenses and other liab
Accrued expenses and other liabilities (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Accrued Liabilities Current [Abstract] | |
Components of Accrued Liabilities | The components of Accrued expenses and other liabilities are as follows: As of September 30, December 31, 2020 2019 Accrued product related costs $ 3,661 $ 2,950 Accrued income taxes 5,564 7,903 Accrued property and other taxes 1,914 1,574 Accrued professional fees 1,242 1,599 Accrued customer related liabilities 4,144 4,391 Dividends payable 1,291 1,299 Remediation reserves 9,337 11,444 Derivative liabilities 1,287 — Other accrued liabilities 4,354 5,218 Total accrued expenses and other liabilities $ 32,794 $ 36,378 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Summary of Remediation Reserve Activity | 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 September 30, December 31, 2020 2019 Balance at beginning of period $ 11,444 $ 11,274 Remediation expense 1,265 2,602 Net remediation payments (3,408 ) (2,455 ) Other activity (1) 36 23 Balance at end of the period $ 9,337 $ 11,444 (1) |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Summary of Long-Term Debt | Long-term debt was comprised of the following: As of September 30, December 31, 2020 2019 Total credit facility $ 300,000 $ 300,000 Balance outstanding 106,300 99,700 Standby letters of credit 1,740 1,800 Amount available, subject to covenant restrictions $ 191,960 $ 198,500 Weighted-average interest rate 2.00 % 3.25 % Commitment fee percentage per annum 0.25 % 0.23 % |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Schedule of Fair Value of Derivative Instruments | The location and fair values of derivative instruments designated as hedging instruments in the Condensed Consolidated Balance Sheets as of September 30, 2020, are shown in the following table: As of September 30, December 31, 2020 2019 Interest rate swaps reported in Other current assets $ — $ 82 Interest rate swaps reported in Accrued liabilities $ (671 ) $ — Interest rate swaps reported in Other long-term obligations $ (1,789 ) $ (78 ) Foreign currency hedges reported in Other current assets $ — $ 580 Foreign currency hedges reported in Accrued liabilities $ (615 ) $ — |
Summary of Derivative Instruments, Gain (Loss) | The effect of derivative instruments on the Condensed Consolidated Statements of Earnings is as follows: Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, 2020 2019 2020 2019 Foreign Exchange Contracts: Amounts reclassified from AOCI to earnings: Net sales $ (78 ) $ — $ (5 ) $ — Cost of goods sold (407 ) 286 (678 ) 562 Selling, general and administrative expense — 23 (5 ) 62 Total (loss) gain reclassified from AOCI to earnings (485 ) 309 (688 ) 624 Gain recognized in other expense for hedge ineffectiveness — — 3 — Total derivative (loss) gain on foreign exchange contracts recognized in earnings $ (485 ) $ 309 $ (685 ) $ 624 Interest Rate Swaps: (Expense) benefit recorded in Interest expense $ (171 ) $ 117 $ (242 ) $ 430 Total (losses) gains on derivatives $ (656 ) $ 426 $ (927 ) $ 1,054 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive (Loss) Income (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive (Loss) Income | The components of accumulated other comprehensive (loss) income for the three months ended September 30, 2020 are as follows: Loss As of Gain (Loss) Reclassified As of June 30, Recognized from AOCI September 30, 2020 in OCI to Earnings 2020 Changes in fair market value of hedges: Gross $ (4,239 ) $ 525 $ 656 $ (3,058 ) Income tax benefit (expense) 978 (122 ) (150 ) 706 Net (3,261 ) 403 506 (2,352 ) Changes in unrealized pension cost: Gross (120,906 ) — 1,606 (119,300 ) Income tax benefit (expense) 33,278 — (367 ) 32,911 Net (87,628 ) — 1,239 (86,389 ) Cumulative translation adjustment: Gross (2,266 ) 99 — (2,167 ) Income tax benefit — — — — Net (2,266 ) 99 — (2,167 ) Total accumulated other comprehensive (loss) income $ (93,155 ) $ 502 $ 1,745 $ (90,908 ) The components of accumulated other comprehensive (loss) income for the three months ended September 30, 2019, are as follows: (Gain) Loss As of Gain (Loss) Reclassified As of June 30, Recognized from AOCI September 30, 2019 in OCI to Earnings 2019 Changes in fair market value of hedges: Gross $ 1,036 $ (529 ) $ (426 ) $ 81 Income tax (expense) benefit (234 ) 119 96 (19 ) Net 802 (410 ) (330 ) 62 Changes in unrealized pension cost: Gross (129,810 ) — 1,313 (128,497 ) Income tax benefit (expense) 35,297 — (296 ) 35,001 Net (94,513 ) — 1,017 (93,496 ) Cumulative translation adjustment: Gross (2,287 ) (89 ) — (2,376 ) Income tax benefit (expense) 95 (3 ) — 92 Net (2,192 ) (92 ) — (2,284 ) Total accumulated other comprehensive (loss) income $ (95,903 ) $ (502 ) $ 687 $ (95,718 ) The components of accumulated other comprehensive (loss) income for the nine months ended September 30, 2020 , are as follows: Loss As of Loss Reclassified As of December 31, Recognized from AOCI September 30, 2019 in OCI to Earnings 2020 Changes in fair market value of hedges: Gross $ 659 $ (4,647 ) 930 $ (3,058 ) Income tax (expense) benefit (150 ) 1,059 (203 ) 706 Net 509 (3,588 ) 727 (2,352 ) Changes in unrealized pension cost: Gross (124,140 ) — 4,840 (119,300 ) Income tax benefit (expense) 34,018 — (1,107 ) 32,911 Net (90,122 ) — 3,733 (86,389 ) Cumulative translation adjustment: Gross (2,211 ) 44 — (2,167 ) Income tax benefit (expense) 98 (98 ) — — Net (2,113 ) (54 ) — (2,167 ) Total accumulated other comprehensive (loss) income $ (91,726 ) $ (3,642 ) $ 4,460 $ (90,908 ) The components of accumulated other comprehensive (loss) income for the nine months ended September 30, 2019, are as follows: Loss As of Gain Reclassified As of December 31, Recognized from AOCI September 30, 2018 in OCI to Earnings 2019 Changes in fair market value of hedges: Gross $ 1,316 $ (181 ) $ (1,054 ) $ 81 Income tax (expense) benefit (298 ) 41 238 (19 ) Net 1,018 (140 ) (816 ) 62 Changes in unrealized pension cost: Gross (132,454 ) — 3,957 (128,497 ) Income tax benefit (expense) 35,893 — (892 ) 35,001 Net (96,561 ) — 3,065 (93,496 ) Cumulative translation adjustment: Gross (2,291 ) (85 ) — (2,376 ) Income tax benefit 95 (3 ) — 92 Net (2,196 ) (88 ) — (2,284 ) Total accumulated other comprehensive (loss) income $ (97,739 ) $ (228 ) $ 2,249 $ (95,718 ) |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
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 September 30, December 31, 2020 2019 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 57,067,574 56,929,298 Shares outstanding 32,267,951 32,472,406 Treasury stock Shares held 24,799,623 24,456,892 |
Summary of Common Shares Outstanding | A roll-forward of common shares outstanding is as follows: Nine months ended September 30, September 30, 2020 2019 Balance at the beginning of the year 32,472,406 32,750,727 Repurchases (342,731 ) (286,726 ) Restricted share issuances 138,276 137,888 Balance at the end of the period 32,267,951 32,601,889 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [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 Nine months ended September 30, September 30, September 30, September 30, 2020 2019 2020 2019 Service-based RSUs $ 580 $ 618 $ 1,939 $ 1,712 Performance-based RSUs 472 486 123 2,072 Cash-settled RSUs 67 53 102 166 Total $ 1,119 $ 1,157 $ 2,164 $ 3,950 Income tax benefit 257 262 497 893 Net expense $ 862 $ 895 $ 1,667 $ 3,057 |
Summary of Unrecognized Compensation Expense related to Non-Vested RSUs | The following table summarizes the unrecognized compensation expense related to non-vested RSUs by type and the weighted-average period in which the expense is to be recognized: Unrecognized Compensation Weighted- Expense at Average September 30, 2020 Period Service-based RSUs $ 1,989 1.43 Performance-based RSUs 2,311 1.90 Total $ 4,300 1.68 |
Summary of Status of Plans | The following table summarizes the status of these plans as of September 30, 2020: 2018 Plan 2014 Plan 2009 Plan 2004 Plan Directors' Plan Awards originally available 2,500,000 1,500,000 3,400,000 6,500,000 N/A Performance-based options outstanding — — — — — Maximum potential RSU and cash settled awards outstanding 495,246 179,528 75,200 35,952 5,522 Maximum potential awards outstanding 495,246 179,528 75,200 35,952 5,522 RSUs and cash settled awards vested and released 36,471 — — — — Awards available for grant 1,968,283 — — — — |
Summary of Service-Based Restricted Stock Units | The following table summarizes the service-based RSU activity for the nine months ended September 30, 2020: Units Weighted Average Grant Date Fair Value Outstanding at December 31, 2019 364,396 $ 19.87 Granted 92,996 27.73 Vested and released (91,762 ) 22.76 Forfeited (13,997 ) 28.70 Outstanding at September 30, 2020 351,633 $ 20.84 Releasable at September 30, 2020 185,974 $ 14.63 |
Summary of Performance and Market Based RSUs | The following table summarizes the performance and market-based RSU activity for the nine months ended September 30, 2020: Units Weighted Average Grant Date Fair Value Outstanding at December 31, 2019 217,229 $ 27.73 Granted 126,521 28.37 Attained by performance 38,820 23.84 Released (111,838 ) 23.74 Forfeited (40,673 ) 29.34 Outstanding at September 30, 2020 230,059 $ 28.94 Releasable at September 30, 2020 — $ — The following table summarizes each grant of performance awards outstanding at September 30, 2020. Description Grant Date Vesting Year Vesting Dependency Target Units Outstanding Maximum Number of Units to be Granted 2018 - 2020 Performance RSUs February 8, 2018 2020 35% RTSR, 35% sales growth, 30% operating cash flow 22,082 44,164 2018 - 2020 Performance RSUs February 16, 2018 2020 35% RTSR, 35% sales growth, 30% operating cash flow 31,820 63,640 2019 - 2021 Performance RSUs February 7, 2019 2021 35% RTSR, 35% sales growth, 30% operating cash flow 50,456 100,912 2019 Supplemental Performance RSUs February 7, 2019 2021 Succession Planning Targets 6,945 13,890 2020 - 2022 QTI Performance RSUs September 24, 2019 2022 50% EBITDA growth, 50% Sales growth 1,750 3,500 2020 - 2022 Performance RSUs February 6, 2020 2022 25% RTSR, 40% sales growth, 35% operating cash flow 63,006 126,012 Focus 2025 Performance RSUs April 23, 2020 2024 Cumulative revenues of $750 million over a trailing four-quarter period 54,000 54,000 Total 230,059 406,118 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Summary of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis | The table below summarizes our financial liabilities that were measured at fair value on a recurring basis at September 30, 2020: Quoted Prices Liability in Active Significant Carrying Markets for Other Significant Value at Identical Observable Unobservable September 30, Instruments Inputs Inputs 2020 (Level 1) (Level 2) (Level 3) Interest rate swaps $ (2,460 ) $ — $ (2,460 ) $ — Foreign currency hedges $ (615 ) $ — $ (615 ) $ — The table below summarizes the financial assets that were measured at fair value on a recurring basis as of December 31, 2019: Quoted Prices Asset in Active Significant Carrying Markets for Other Significant Value at Identical Observable Unobservable December 31, Instruments Inputs Inputs 2019 (Level 1) (Level 2) (Level 3) Interest rate swaps $ 4 $ — $ 4 $ — Foreign currency hedges $ 580 $ — $ 580 $ — |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of Effective Income Tax Rate | The effective tax rates for the three and nine months ended September 30, 2020 and 2019 are as follows: Three months ended Nine months ended September 30, September 30, September 30, September 30, 2020 2019 2020 2019 Effective tax rate 22.2 % 62.2 % 24.4 % 30.3 % |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Components of Lease Expense | Components of lease expense for the three and nine months ended September 30, 2020 were as follows: Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, 2020 2019 2020 2019 Operating lease cost $ 1,189 $ 1,128 $ 3,578 $ 3,197 Short-term lease cost 471 43 808 292 Total lease cost $ 1,660 $ 1,171 $ 4,386 $ 3,489 |
Summary of Supplemental Cash Flow Information Related to Leases | Supplemental cash flow information related to leases was as follows: Nine Months Ended September 30, September 30, 2020 2019 Cash paid for amounts included in the measurement of lease liabilities $ 3,476 $ 2,887 Leased assets obtained in exchange for new operating lease liabilities $ 1,299 $ 2,961 |
Summary of Supplemental Balance Sheet Information Related to Leases | Supplemental balance sheet information related to leases was as follows: As of September 30, December 31, 2020 2019 Balance Sheet Classification: Operating lease obligations $ 3,149 $ 2,787 Long-term operating lease obligations 23,747 24,926 Total lease liabilities $ 26,896 $ 27,713 Weighted-average remaining lease terms (years) 8.16 9.04 Weighted-average discount rate 6.45 % 6.54 % |
Summary of Remaining Maturity of Existing Lease Liabilities | Remaining maturity of our existing lease liabilities as of September 30, 2020 is as follows: Operating Leases (1) 2020 $ 1,183 2021 4,728 2022 4,589 2023 4,213 2024 4,075 Thereafter 16,950 Total $ 35,738 Less: interest (8,842 ) Present value of lease liabilities $ 26,896 (1) |
Business Acquisitions (Tables)
Business Acquisitions (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Business Combinations [Abstract] | |
Summary of Consideration Paid and Fair Values of Assets Acquired and Liabilities Assumed | The following table summarizes the consideration paid and 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 $567 $ 72,850 Contingent consideration 1,056 Purchase price $ 73,906 Fair Values at July 31, 2019 Current assets $ 6,221 Property, plant and equipment 2,567 Other assets 29 Goodwill 34,999 Intangible assets 32,800 Fair value of assets acquired 76,616 Less fair value of liabilities acquired (2,710 ) Purchase price $ 73,906 |
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 Value Weighted Average Amortization Period Customer lists/relationships $ 31,000 15.0 Technology and other intangibles 1,800 5.0 Total $ 32,800 |
Revenue Recognition - Summary o
Revenue Recognition - Summary of Disaggregated Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 113,777 | $ 115,651 | $ 301,049 | $ 353,959 |
Transportation | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 65,277 | 71,559 | 164,940 | 230,743 |
Industrial | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 24,204 | 19,750 | 65,260 | 57,406 |
Medical | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 10,201 | 10,537 | 32,609 | 29,176 |
Aerospace and Defense | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 11,038 | 9,025 | 29,416 | 23,536 |
Telecom & IT | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 3,057 | $ 4,780 | $ 8,824 | $ 13,098 |
Accounts Receivable - Summary o
Accounts Receivable - Summary of Components of Accounts Receivable (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Receivables [Abstract] | ||
Accounts receivable, gross | $ 77,250 | $ 78,269 |
Less: Allowance for credit losses | (819) | (261) |
Accounts receivable, net | $ 76,431 | $ 78,008 |
Inventories - Summary of Invent
Inventories - Summary of Inventories (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 9,046 | $ 9,447 |
Work-in-process | 15,237 | 14,954 |
Raw materials | 23,607 | 23,363 |
Less: Inventory reserves | (6,398) | (5,527) |
Inventories, net | $ 41,492 | $ 42,237 |
Property, Plant and Equipment -
Property, Plant and Equipment - Summary of Property, Plant and Equipment, Net (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Property, Plant and Equipment [Line Items] | |||
Less: Accumulated depreciation | $ (200,909) | $ (188,719) | |
Property, plant and equipment, net | 97,777 | 105,038 | |
Depreciation expense | 13,003 | $ 12,657 | |
Land and Land Improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment gross | 1,095 | 1,095 | |
Buildings and Improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment gross | 69,007 | 68,350 | |
Machinery and Equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment gross | $ 228,584 | $ 224,312 |
Retirement Plans - Net Pension
Retirement Plans - Net Pension Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Pension Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Net pension expense | $ 666 | $ 250 | $ 1,996 | $ 749 |
Retirement Plans - Net Pensio_2
Retirement Plans - Net Pension Income Domestic and Foreign (Details) - Pension Plans - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Net pension expense (income) | ||||
Total expense, net | $ 666 | $ 250 | $ 1,996 | $ 749 |
UNITED STATES | ||||
Net pension expense (income) | ||||
Service cost | 0 | 0 | 0 | 0 |
Interest cost | 1,443 | 1,931 | 4,329 | 5,793 |
Expected return on plan assets | (2,454) | (3,046) | (7,362) | (9,140) |
Amortization of loss | 1,622 | 1,311 | 4,866 | 3,934 |
Total expense, net | 611 | 196 | 1,833 | 587 |
Foreign Plan | ||||
Net pension expense (income) | ||||
Service cost | 8 | 9 | 23 | 27 |
Interest cost | 6 | 8 | 19 | 23 |
Expected return on plan assets | (3) | (4) | (10) | (13) |
Amortization of loss | 44 | 41 | 131 | 125 |
Total expense, net | $ 55 | $ 54 | $ 163 | $ 162 |
Retirement Plans - Additional I
Retirement Plans - Additional Information (Details) - Pension Plans - UNITED STATES | Jun. 01, 2020 |
Defined Benefit Plan Disclosure [Line Items] | |
Defined benefit plan, termination date | Jul. 31, 2020 |
Minimum | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined benefit plan, termination process term | 12 months |
Maximum | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined benefit plan, termination process term | 18 months |
Retirement Plans - Other Postre
Retirement Plans - Other Postretirement Benefit Plan (Details) - Other Postretirement Benefits Plan - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 1 | $ 0 | $ 1 | $ 1 |
Interest cost | 30 | 42 | 90 | 127 |
Amortization of gain | (20) | (42) | (64) | (125) |
Total expense, net | $ 11 | $ 0 | $ 27 | $ 3 |
Other Intangible Assets - Summa
Other Intangible Assets - Summary of Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Finite Lived Intangible Assets [Line Items] | |||||
Gross Carrying Amount | $ 142,319 | $ 142,319 | $ 142,319 | ||
Accumulated Amortization | (66,193) | (66,193) | (57,104) | ||
Total amortization expense | 76,126 | 76,126 | 85,215 | ||
Amortization expense | 2,253 | $ 1,999 | 6,816 | $ 5,381 | |
Customer lists/relationships | |||||
Finite Lived Intangible Assets [Line Items] | |||||
Gross Carrying Amount | 92,194 | 92,194 | 92,194 | ||
Accumulated Amortization | (42,753) | (42,753) | (38,682) | ||
Total amortization expense | 49,441 | 49,441 | 53,512 | ||
Technology and other intangibles | |||||
Finite Lived Intangible Assets [Line Items] | |||||
Gross Carrying Amount | 47,925 | 47,925 | 47,925 | ||
Accumulated Amortization | (21,240) | (21,240) | (18,422) | ||
Total amortization expense | 26,685 | 26,685 | 29,503 | ||
In process research and development | |||||
Finite Lived Intangible Assets [Line Items] | |||||
Gross Carrying Amount | 2,200 | 2,200 | 2,200 | ||
Accumulated Amortization | $ (2,200) | $ (2,200) | |||
Total amortization expense | $ 2,200 |
Other Intangible Assets - Addit
Other Intangible Assets - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | |
Infinite Lived Intangible Assets [Line Items] | |||
Revaluation of contingent liabilities | $ 1,900 | ||
Restructuring expense | 300 | $ 300 | $ 1,100 |
In process research and development | |||
Infinite Lived Intangible Assets [Line Items] | |||
Impairment charges | $ 2,200 |
Other Intangible Assets - Sum_2
Other Intangible Assets - Summary of Amortization Expense (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Finite-Lived Intangible Assets, Amortization Expense, Maturity Schedule | ||
2020 | $ 2,243 | |
2021 | 8,893 | |
2022 | 8,657 | |
2023 | 6,651 | |
2024 | 6,489 | |
Thereafter | 43,193 | |
Total amortization expense | $ 76,126 | $ 85,215 |
Costs Associated with Exit an_3
Costs Associated with Exit and Restructuring Activities - Schedule of Restructuring Charges (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Restructuring Cost And Reserve [Line Items] | ||||
Restructuring charges | $ 1,041 | $ 2,342 | $ 1,416 | $ 5,337 |
Workforce Reduction | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Restructuring charges | 33 | 440 | ||
June 2016 Plan | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Restructuring charges | 0 | $ 671 | (32) | $ 3,914 |
Planned Costs | 13,400 | 13,400 | ||
Actual costs incurred | 15,998 | 15,998 | ||
June 2016 Plan | Workforce Reduction | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Planned Costs | 3,075 | 3,075 | ||
Actual costs incurred | 3,312 | 3,312 | ||
June 2016 Plan | Building and Equipment Relocation | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Planned Costs | 9,025 | 9,025 | ||
Actual costs incurred | 10,530 | 10,530 | ||
June 2016 Plan | Other Charges | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Planned Costs | 1,300 | 1,300 | ||
Actual costs incurred | $ 2,156 | $ 2,156 |
Costs Associated with Exit an_4
Costs Associated with Exit and Restructuring Activities -Additional Information (Details) | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($)Facility | Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($)Facility | Dec. 31, 2019USD ($) | Dec. 31, 2017USD ($) | |
Restructuring Cost And Reserve [Line Items] | ||||||
Restructuring charges | $ 1,041,000 | $ 2,342,000 | $ 1,416,000 | $ 5,337,000 | ||
Restructuring reserve | 1,494,000 | 1,494,000 | $ 1,993,000 | |||
Workforce Reduction | ||||||
Restructuring Cost And Reserve [Line Items] | ||||||
Restructuring charges | 33,000 | 440,000 | ||||
Facilities | ||||||
Restructuring Cost And Reserve [Line Items] | ||||||
Restructuring charges | $ 1,671,000 | $ 1,671,000 | ||||
Restructuring and related cost, number of facilities | Facility | 3 | 3 | ||||
Lease Termination | Quality Thermistor, Inc. | ||||||
Restructuring Cost And Reserve [Line Items] | ||||||
Restructuring charges | $ 800,000 | $ 800,000 | ||||
Workforce and Building Relocation | ||||||
Restructuring Cost And Reserve [Line Items] | ||||||
Restructuring charges | $ 871,000 | $ 871,000 | ||||
Workforce and Building Relocation | Foreign | ||||||
Restructuring Cost And Reserve [Line Items] | ||||||
Restructuring and related cost, number of facilities | Facility | 2 | 2 | ||||
Other Charges | ||||||
Restructuring Cost And Reserve [Line Items] | ||||||
Restructuring reserve | 14,000 | 14,000 | 1,057,000 | |||
September 2020 Plan | ||||||
Restructuring Cost And Reserve [Line Items] | ||||||
Restructuring charges | 1,008,000 | 1,008,000 | ||||
Restructuring reserve | 583,000 | 583,000 | ||||
September 2020 Plan | Minimum | ||||||
Restructuring Cost And Reserve [Line Items] | ||||||
Restructuring and related cost, expected cost of plan | 5,000,000 | 5,000,000 | ||||
Expected initiatives cost incurred not qualify as restructuring charges | 5,000,000 | 5,000,000 | ||||
September 2020 Plan | Maximum | ||||||
Restructuring Cost And Reserve [Line Items] | ||||||
Restructuring and related cost, expected cost of plan | 6,000,000 | 6,000,000 | ||||
Expected initiatives cost incurred not qualify as restructuring charges | 6,000,000 | 6,000,000 | ||||
June 2016 Plan | ||||||
Restructuring Cost And Reserve [Line Items] | ||||||
Restructuring and related cost, expected cost of plan | 13,400,000 | 13,400,000 | ||||
Restructuring charges | 0 | $ 671,000 | (32,000) | $ 3,914,000 | ||
Restructuring reserve | 23,000 | 23,000 | 233,000 | |||
Restructuring and related cost additional cost | $ 1,100,000 | |||||
June 2016 Plan | Workforce Reduction | ||||||
Restructuring Cost And Reserve [Line Items] | ||||||
Restructuring and related cost, expected cost of plan | 3,075,000 | 3,075,000 | ||||
June 2016 Plan | Other Charges | ||||||
Restructuring Cost And Reserve [Line Items] | ||||||
Restructuring and related cost, expected cost of plan | 1,300,000 | 1,300,000 | ||||
April 2014 Plan | ||||||
Restructuring Cost And Reserve [Line Items] | ||||||
Restructuring charges | 0 | $ (248,000) | 0 | $ (248,000) | ||
Restructuring reserve | $ 874,000 | $ 874,000 | $ 703,000 |
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 | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Restructuring And Related Activities [Abstract] | ||||
Restructuring liability | $ 1,993 | |||
Restructuring charges | $ 1,041 | $ 2,342 | 1,416 | $ 5,337 |
Cost paid | (1,382) | |||
Other activity | (533) | |||
Restructuring liability | $ 1,494 | $ 1,494 |
Accrued Liabilities - Component
Accrued Liabilities - Components of Accrued Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Accrued Liabilities Current [Abstract] | |||
Accrued product related costs | $ 3,661 | $ 2,950 | |
Accrued income taxes | 5,564 | 7,903 | |
Accrued property and other taxes | 1,914 | 1,574 | |
Accrued professional fees | 1,242 | 1,599 | |
Accrued customer related liabilities | 4,144 | 4,391 | |
Dividends payable | 1,291 | 1,299 | |
Remediation reserves | 9,337 | 11,444 | $ 11,274 |
Derivative liabilities | 1,287 | ||
Other accrued liabilities | 4,354 | 5,218 | |
Total accrued expenses and other liabilities | $ 32,794 | $ 36,378 |
Commitments and Contingencies -
Commitments and Contingencies - Summary of Remediation Reserve Activity (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Loss Contingencies [Line Items] | ||
Balance at beginning of period | $ 11,444 | $ 11,274 |
Remediation expense | 1,265 | 2,602 |
Net remediation payments | (3,408) | (2,455) |
Other activity | 36 | 23 |
Balance at end of the period | $ 9,337 | $ 11,444 |
Debt - Summary of Long-Term Deb
Debt - Summary of Long-Term Debt (Details) - USD ($) | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2020 | Dec. 31, 2019 | Feb. 12, 2019 | May 23, 2016 | |
Long-term debt | ||||
Total credit facility | $ 300,000,000 | $ 300,000,000 | ||
Balance outstanding | 106,300,000 | 99,700,000 | ||
Standby letters of credit | 1,740,000 | 1,800,000 | ||
Amount available, subject to covenant restrictions | 191,960,000 | 198,500,000 | ||
Line of Credit | Revolving Credit Facility Due 2024 | ||||
Long-term debt | ||||
Total credit facility | $ 300,000,000 | $ 300,000,000 | ||
Balance outstanding | $ 106,300,000 | $ 99,700,000 | $ 50,000,000 | |
Weighted-average interest rate | 2.00% | 3.25% | ||
Commitment fee percentage per annum | 0.25% | 0.23% |
Debt - Additional Information (
Debt - Additional Information (Details) - USD ($) | Feb. 12, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | May 23, 2016 |
Line of Credit Facility | |||||||
Line of credit maximum borrowing amount | $ 300,000,000 | $ 300,000,000 | $ 300,000,000 | ||||
Outstanding borrowings | 106,300,000 | 106,300,000 | 99,700,000 | ||||
Debt amortization expense | 42,000 | $ 42,000 | 126,000 | $ 121,000 | |||
Line of Credit | Revolving Credit Facility Due 2024 | |||||||
Line of Credit Facility | |||||||
Debt instrument, term | 5 years | ||||||
Line of credit maximum borrowing amount | $ 300,000,000 | $ 300,000,000 | |||||
Line of credit facility contingent increase to maximum borrowing capacity | 150,000,000 | ||||||
Outstanding borrowings | $ 50,000,000 | $ 106,300,000 | $ 106,300,000 | $ 99,700,000 | |||
Commitment fee percentage per annum | 0.25% | 0.23% | |||||
Line of Credit | Revolving Credit Facility Due 2024 | Minimum | |||||||
Line of Credit Facility | |||||||
Commitment fee percentage per annum | 0.20% | ||||||
Line of Credit | Revolving Credit Facility Due 2024 | Maximum | |||||||
Line of Credit Facility | |||||||
Commitment fee percentage per annum | 0.30% | ||||||
Line of Credit | Revolving Credit Facility Due 2024 Swingline Sublimit | |||||||
Line of Credit Facility | |||||||
Line of credit maximum borrowing amount | $ 15,000,000 | ||||||
Line of Credit | Revolving Credit Facility Due 2024 Letter Of Credit Sublimit | |||||||
Line of Credit Facility | |||||||
Line of credit maximum borrowing amount | $ 10,000,000 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Additional Information (Details) - USD ($) $ in Thousands | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | Feb. 12, 2019 | |
Derivative [Line Items] | ||||
Unrealized Gain (Loss) on Foreign Currency Derivatives, Net, before Tax | $ (458) | $ 507 | ||
Long-term debt | 106,300 | $ 99,700 | ||
Derivative liability | 1,287 | |||
Foreign Currency Derivatives | ||||
Derivative [Line Items] | ||||
Derivative asset | 0 | |||
Derivative liability | 615 | |||
Line of Credit | Revolving Credit Facility Due 2024 | ||||
Derivative [Line Items] | ||||
Long-term debt | 106,300 | $ 99,700 | $ 50,000 | |
Cash Flow Hedging | Designated As Hedging | Foreign Currency Forward Contracts | ||||
Derivative [Line Items] | ||||
Foreign currency cash flow hedge gain to be reclassified during next 12 months | (425) | |||
Derivative, notional amount | 17,015 | |||
Cash Flow Hedging | Designated As Hedging | Interest Rate Swap | ||||
Derivative [Line Items] | ||||
Interest rate cash flow hedge gain (loss) to be reclassified during next 12 months | $ (517) |
Derivative Financial Instrume_4
Derivative Financial Instruments - Schedule of Fair Value of Derivative Instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Derivative Liabilities | ||
Derivative liabilities | $ (1,287) | |
Other Current Assets | Interest Rate Swap | Cash Flow Hedging | ||
Derivative Assets | ||
Derivative assets | 0 | $ 82 |
Other Current Assets | Foreign Currency Hedges | Cash Flow Hedging | ||
Derivative Assets | ||
Derivative assets | 0 | 580 |
Accrued Liabilities | Interest Rate Swap | Cash Flow Hedging | ||
Derivative Liabilities | ||
Derivative liabilities | (671) | 0 |
Accrued Liabilities | Foreign Currency Hedges | Cash Flow Hedging | ||
Derivative Liabilities | ||
Derivative liabilities | (615) | 0 |
Other Long-Term Obligations | Interest Rate Swap | Cash Flow Hedging | ||
Derivative Liabilities | ||
Derivative liabilities | $ (1,789) | $ (78) |
Derivative Financial Instrume_5
Derivative Financial Instruments - Summary of Derivative Instruments, Gain (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Derivative, Gain (Loss) on Derivative, Net | ||||
Total (losses) gains on derivatives | $ (656) | $ 426 | $ (927) | $ 1,054 |
Foreign Currency Derivatives | Designated As Hedging | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total (loss) gain reclassified from AOCI to earnings | (485) | 309 | (688) | 624 |
Derivative, Gain (Loss) on Derivative, Net | ||||
Total (losses) gains on derivatives | (485) | 309 | (685) | 624 |
Foreign Currency Derivatives | Designated As Hedging | Net Sales | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total (loss) gain reclassified from AOCI to earnings | (78) | 0 | (5) | 0 |
Foreign Currency Derivatives | Designated As Hedging | Cost of Goods Sold | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total (loss) gain reclassified from AOCI to earnings | (407) | 286 | (678) | 562 |
Foreign Currency Derivatives | Designated As Hedging | Selling, General and Administrative Expenses | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total (loss) gain reclassified from AOCI to earnings | 0 | 23 | (5) | 62 |
Foreign Currency Derivatives | Designated As Hedging | Other Income and Expenses | ||||
Derivative, Gain (Loss) on Derivative, Net | ||||
Gain recognized in other expense for hedge ineffectiveness | 0 | 0 | 3 | 0 |
Interest Rate Swap | Designated As Hedging | Interest Expense | ||||
Derivative, Gain (Loss) on Derivative, Net | ||||
Total (losses) gains on derivatives | $ (171) | $ 117 | $ (242) | $ 430 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive (Loss) Income - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Foreign currency transaction loss | ||||
Foreign currency transaction gain (loss) | $ 2,326 | $ (2,473) | $ 1,947 | $ (2,828) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive (Loss) Income - Schedule of Accumulated Other Comprehensive (Loss) Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
AOCI Attributable to Parent, Net of Tax | ||||
Total accumulated other comprehensive (loss) income, beginning of period | $ (91,726) | |||
Total accumulated other comprehensive (loss) income, end of period | $ (90,908) | (90,908) | ||
Changes in Fair Market Value of Hedges | ||||
Changes in AOCI, Gross | ||||
Gross, beginning of the period | (4,239) | $ 1,036 | 659 | $ 1,316 |
Gross, gain (loss) recognized in OCI | 525 | (529) | (4,647) | (181) |
Gross, gain (loss) reclassified from AOCI to Earnings | 656 | (426) | 930 | (1,054) |
Gross, ending balance | (3,058) | 81 | (3,058) | 81 |
Changes in AOCI, Income tax benefit (expense) | ||||
Income tax benefit (expense), beginning of period | 978 | (234) | (150) | (298) |
Income tax benefit (expense), gain (loss) recognized in OCI | (122) | 119 | 1,059 | 41 |
Income tax benefit (expense), gain (loss) reclassified from AOCI to Earnings | (150) | 96 | (203) | 238 |
Income tax benefit (expense), ending of period | 706 | (19) | 706 | (19) |
AOCI Attributable to Parent, Net of Tax | ||||
Total accumulated other comprehensive (loss) income, beginning of period | (3,261) | 802 | 509 | 1,018 |
Gain (loss) recognized in OCI, net | 403 | (410) | (3,588) | (140) |
Gain (loss) reclassified from AOCI to Earnings, net | 506 | (330) | 727 | (816) |
Total accumulated other comprehensive (loss) income, end of period | (2,352) | 62 | (2,352) | 62 |
Changes in Unrealized Pension Cost | ||||
Changes in AOCI, Gross | ||||
Gross, beginning of the period | (120,906) | (129,810) | (124,140) | (132,454) |
Gross, gain (loss) recognized in OCI | 0 | 0 | 0 | 0 |
Gross, gain (loss) reclassified from AOCI to Earnings | 1,606 | 1,313 | 4,840 | 3,957 |
Gross, ending balance | (119,300) | (128,497) | (119,300) | (128,497) |
Changes in AOCI, Income tax benefit (expense) | ||||
Income tax benefit (expense), beginning of period | 33,278 | 35,297 | 34,018 | 35,893 |
Income tax benefit (expense), gain (loss) recognized in OCI | 0 | 0 | 0 | 0 |
Income tax benefit (expense), gain (loss) reclassified from AOCI to Earnings | (367) | (296) | (1,107) | (892) |
Income tax benefit (expense), ending of period | 32,911 | 35,001 | 32,911 | 35,001 |
AOCI Attributable to Parent, Net of Tax | ||||
Total accumulated other comprehensive (loss) income, beginning of period | (87,628) | (94,513) | (90,122) | (96,561) |
Gain (loss) recognized in OCI, net | 0 | 0 | 0 | 0 |
Gain (loss) reclassified from AOCI to Earnings, net | 1,239 | 1,017 | 3,733 | 3,065 |
Total accumulated other comprehensive (loss) income, end of period | (86,389) | (93,496) | (86,389) | (93,496) |
Cumulative Translation Adjustment | ||||
Changes in AOCI, Gross | ||||
Gross, beginning of the period | (2,266) | (2,287) | (2,211) | (2,291) |
Gross, gain (loss) recognized in OCI | 99 | (89) | 44 | (85) |
Gross, gain (loss) reclassified from AOCI to Earnings | 0 | 0 | 0 | 0 |
Gross, ending balance | (2,167) | (2,376) | (2,167) | (2,376) |
Changes in AOCI, Income tax benefit (expense) | ||||
Income tax benefit (expense), beginning of period | 0 | 95 | 98 | 95 |
Income tax benefit (expense), gain (loss) recognized in OCI | 0 | (3) | (98) | (3) |
Income tax benefit (expense), gain (loss) reclassified from AOCI to Earnings | 0 | 0 | 0 | 0 |
Income tax benefit (expense), ending of period | 0 | 92 | 0 | 92 |
AOCI Attributable to Parent, Net of Tax | ||||
Total accumulated other comprehensive (loss) income, beginning of period | (2,266) | (2,192) | (2,113) | (2,196) |
Gain (loss) recognized in OCI, net | 99 | (92) | (54) | (88) |
Gain (loss) reclassified from AOCI to Earnings, net | 0 | 0 | 0 | 0 |
Total accumulated other comprehensive (loss) income, end of period | (2,167) | (2,284) | (2,167) | (2,284) |
Accumulated Other Comprehensive Earnings/(Loss) | ||||
AOCI Attributable to Parent, Net of Tax | ||||
Total accumulated other comprehensive (loss) income, beginning of period | (93,155) | (95,903) | (91,726) | (97,739) |
Gain (loss) recognized in OCI, net | 502 | (502) | (3,642) | (228) |
Gain (loss) reclassified from AOCI to Earnings, net | 1,745 | 687 | 4,460 | 2,249 |
Total accumulated other comprehensive (loss) income, end of period | $ (90,908) | $ (95,718) | $ (90,908) | $ (95,718) |
Shareholders' Equity - Summary
Shareholders' Equity - Summary of Share Count and Par Value Data Related to Shareholders' Equity (Details) - $ / shares | Sep. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Dec. 31, 2018 |
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 | 57,067,574 | 56,929,298 | ||
Common stock, shares outstanding | 32,267,951 | 32,472,406 | 32,601,889 | 32,750,727 |
Treasury stock | ||||
Treasury stock, shares held | 24,799,623 | 24,456,892 |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Feb. 07, 2019 | |
Stockholders Equity Note [Abstract] | |||||||||
Treasury shares authorized to be purchased | $ 25,000,000 | ||||||||
Common stock repurchased, shares | 122,000 | 220,731 | 106,760 | 148,466 | 31,500 | 342,731 | 286,726 | ||
Common stock repurchased, value | $ 2,776,000 | $ 5,304,000 | $ 3,043,000 | $ 4,153,000 | $ 849,000 | $ 8,080,000 | $ 8,045,000 | ||
Shares are available for future issuances | $ 5,740,000 | $ 5,740,000 | |||||||
Antidilutive securities excluded from computation of earnings per share (shares) | 0 | 0 | 68,198 | 20,273 |
Shareholders' Equity - Summar_2
Shareholders' Equity - Summary of Common Shares Outstanding (Details) - shares | 3 Months Ended | 9 Months Ended | |||||
Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Roll forward of common shares outstanding | |||||||
Balance at the beginning of the year | 32,472,406 | 32,750,727 | 32,472,406 | 32,750,727 | |||
Repurchases | (122,000) | (220,731) | (106,760) | (148,466) | (31,500) | (342,731) | (286,726) |
Restricted share issuances | 138,276 | 137,888 | |||||
Balance at the end of the period | 32,601,889 | 32,267,951 | 32,601,889 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) $ in Thousands | Sep. 30, 2020USD ($)planshares | Dec. 31, 2019USD ($)shares |
Share-based Compensation | ||
Number of equity based compensation plan | plan | 5 | |
Other accrued liabilities | $ 4,354 | $ 5,218 |
Cash Settled Awards | ||
Share-based Compensation | ||
Outstanding shares | shares | 33,697 | 17,271 |
Other accrued liabilities | $ 221 | $ 353 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation | $ 2,164 | $ 3,950 | ||
Stock-based compensation, net | $ 862 | $ 895 | 1,667 | 3,057 |
Service-Based RSUs | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation | 580 | 618 | 1,939 | 1,712 |
Performance-Based RSUs | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation | 472 | 486 | 123 | 2,072 |
Cash Settled Awards | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation | 67 | 53 | 102 | 166 |
RSUs | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation | 1,119 | 1,157 | 2,164 | 3,950 |
Income tax benefit | $ 257 | $ 262 | $ 497 | $ 893 |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of Unrecognized Compensation Expense related to Non-Vested RSUs (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2020USD ($) | |
Service-Based RSUs | |
Share-based Compensation | |
Unrecognized Compensation Expense | $ 1,989 |
Weighted-Average Period | 1 year 5 months 4 days |
Performance-Based RSUs | |
Share-based Compensation | |
Unrecognized Compensation Expense | $ 2,311 |
Weighted-Average Period | 1 year 10 months 24 days |
RSUs | |
Share-based Compensation | |
Unrecognized Compensation Expense | $ 4,300 |
Weighted-Average Period | 1 year 8 months 4 days |
Stock-Based Compensation - Su_3
Stock-Based Compensation - Summary of Status of Plans (Details) | 9 Months Ended |
Sep. 30, 2020shares | |
2018 Plan | |
Summary of Status of Equity-Based Compensation Plans | |
Awards originally available | 2,500,000 |
Stock options outstanding | 495,246 |
RSUs and cash settled awards vested and released | 36,471 |
Awards available for grant | 1,968,283 |
2014 Plan | |
Summary of Status of Equity-Based Compensation Plans | |
Awards originally available | 1,500,000 |
Stock options outstanding | 179,528 |
2009 Plan | |
Summary of Status of Equity-Based Compensation Plans | |
Awards originally available | 3,400,000 |
Stock options outstanding | 75,200 |
2004 Plan | |
Summary of Status of Equity-Based Compensation Plans | |
Awards originally available | 6,500,000 |
Stock options outstanding | 35,952 |
Directors' Plan | |
Summary of Status of Equity-Based Compensation Plans | |
Stock options outstanding | 5,522 |
RSUs | 2018 Plan | |
Summary of Status of Equity-Based Compensation Plans | |
Shares outstanding | 495,246 |
RSUs | 2014 Plan | |
Summary of Status of Equity-Based Compensation Plans | |
Shares outstanding | 179,528 |
RSUs | 2009 Plan | |
Summary of Status of Equity-Based Compensation Plans | |
Shares outstanding | 75,200 |
RSUs | 2004 Plan | |
Summary of Status of Equity-Based Compensation Plans | |
Shares outstanding | 35,952 |
RSUs | Directors' Plan | |
Summary of Status of Equity-Based Compensation Plans | |
Shares outstanding | 5,522 |
Stock-Based Compensation - Su_4
Stock-Based Compensation - Summary of Service-Based Restricted Stock Units (Details) - Officers, key employees, and non-employee directors - Service-Based RSUs | 9 Months Ended |
Sep. 30, 2020$ / sharesshares | |
Units | |
Outstanding at beginning of year - Units | shares | 364,396 |
Granted - Units | shares | 92,996 |
Vested and released - Units | shares | (91,762) |
Forfeited - Units | shares | (13,997) |
Outstanding at end of year - Units | shares | 351,633 |
Releasable - Units | shares | 185,974 |
Weighted Average Grant Date Fair Value | |
Beginning of year - Weighted Average Grant Date Fair Value | $ / shares | $ 19.87 |
Granted - Weighted Average Grant Date Fair Value | $ / shares | 27.73 |
Vested and released - Weighted Average Grant Date Fair Value | $ / shares | 22.76 |
Forfeited - Weighted Average Grant Date Fair Value | $ / shares | 28.70 |
End of year - Weighted Average Grant Date Fair Value | $ / shares | 20.84 |
Releasable - Weighted Average Grant Date Fair Value | $ / shares | $ 14.63 |
Stock-Based Compensation - Su_5
Stock-Based Compensation - Summary of Performance and Market Based RSUs (Details) - Performance and Market-based Restricted Stock Units | 9 Months Ended |
Sep. 30, 2020$ / sharesshares | |
Units | |
Outstanding at beginning of year - Units | shares | 217,229 |
Granted - Units | shares | 126,521 |
Attained by performance - Units | shares | 38,820 |
Released - Units | shares | (111,838) |
Forfeited - Units | shares | (40,673) |
Outstanding at end of year - Units | shares | 230,059 |
Weighted Average Grant Date Fair Value | |
Beginning of year - Weighted Average Grant Date Fair Value | $ / shares | $ 27.73 |
Granted - Weighted Average Grant Date Fair Value | $ / shares | 28.37 |
Attained by performance - Weighted Average Grant Date Fair Value | $ / shares | 23.84 |
Vested and released - Weighted Average Grant Date Fair Value | $ / shares | 23.74 |
Forfeited - Weighted Average Grant Date Fair Value | $ / shares | 29.34 |
End of year - Weighted Average Grant Date Fair Value | $ / shares | $ 28.94 |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Performance-Based Awards (Details) - shares | Sep. 30, 2020 | Apr. 23, 2020 | Feb. 06, 2020 | Sep. 24, 2019 | Feb. 07, 2019 | Feb. 16, 2018 | Feb. 08, 2018 |
Performance-Based RSUs | |||||||
Share-based Compensation | |||||||
Target Units Outstanding | 50,456 | 31,820 | 22,082 | ||||
Maximum Number of Units to be Granted | 100,912 | 63,640 | 44,164 | ||||
Performance Goal [Member] | |||||||
Share-based Compensation | |||||||
Target Units Outstanding | 230,059 | 54,000 | 63,006 | 1,750 | 6,945 | ||
Maximum Number of Units to be Granted | 406,118 | 54,000 | 126,012 | 3,500 | 13,890 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Financial liabilities, measured at fair value | ||
Derivative liabilities | $ (1,287) | |
Recurring | Interest Rate Swaps | Carrying Value | Designated As Hedging | Cash Flow Hedge | ||
Financial liabilities, measured at fair value | ||
Derivative liabilities | (2,460) | |
Financial assets, measured at fair value | ||
Derivative assets | $ 4 | |
Recurring | Foreign Currency Hedges | Carrying Value | Designated As Hedging | Cash Flow Hedge | ||
Financial liabilities, measured at fair value | ||
Derivative liabilities | (615) | |
Financial assets, measured at fair value | ||
Derivative assets | 580 | |
Recurring | Significant Other Observable Inputs (Level 2) | Interest Rate Swaps | Designated As Hedging | Cash Flow Hedge | ||
Financial liabilities, measured at fair value | ||
Derivative liabilities | (2,460) | |
Financial assets, measured at fair value | ||
Derivative assets | 4 | |
Recurring | Significant Other Observable Inputs (Level 2) | Foreign Currency Hedges | Designated As Hedging | Cash Flow Hedge | ||
Financial liabilities, measured at fair value | ||
Derivative liabilities | $ (615) | |
Financial assets, measured at fair value | ||
Derivative assets | $ 580 |
Income Taxes - Schedule of Effe
Income Taxes - Schedule of Effective Income Tax Rate (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | ||||
Effective tax rate | 22.20% | 62.20% | 24.40% | 30.30% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | ||||
Effective income tax rate | 22.20% | 62.20% | 24.40% | 30.30% |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Leases [Abstract] | ||||
Operating lease cost | $ 1,189 | $ 1,128 | $ 3,578 | $ 3,197 |
Short-term lease cost | 471 | 43 | 808 | 292 |
Total lease cost | $ 1,660 | $ 1,171 | $ 4,386 | $ 3,489 |
Leases - Summary of Supplementa
Leases - Summary of Supplemental Cash Flow Information Related to Leases (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Supplemental Cash Flow Information [Abstract] | ||
Cash paid for amounts included in the measurement of lease liabilities | $ 3,476 | $ 2,887 |
Leased assets obtained in exchange for new operating lease liabilities | $ 1,299 | $ 2,961 |
Leases - Summary of Supplemen_2
Leases - Summary of Supplemental Balance Sheet Information Related to Leases (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
Operating lease obligations | $ 3,149 | $ 2,787 |
Long-term operating lease obligations | 23,747 | 24,926 |
Total lease liabilities | $ 26,896 | $ 27,713 |
Weighted-average remaining lease terms (years) | 8 years 1 month 28 days | 9 years 14 days |
Weighted-average discount rate | 6.45% | 6.54% |
Leases - Summary of Remaining M
Leases - Summary of Remaining Maturity of Existing Lease Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
2020 | $ 1,183 | |
2021 | 4,728 | |
2022 | 4,589 | |
2023 | 4,213 | |
2024 | 4,075 | |
Thereafter | 16,950 | |
Total | 35,738 | |
Less: interest | (8,842) | |
Present value of lease liabilities | $ 26,896 | $ 27,713 |
Leases - Summary of Remaining_2
Leases - Summary of Remaining Maturity of Existing Lease Liabilities (Parenthetical) (Details) $ in Thousands | Sep. 30, 2020USD ($) |
Leases [Abstract] | |
Operating lease payment on extension option | $ 3,822 |
Business Acquisitions - Additio
Business Acquisitions - Additional Information (Details) - USD ($) | 1 Months Ended | 12 Months Ended |
Jul. 31, 2019 | Dec. 31, 2019 | |
Business Acquisition [Line Items] | ||
Purchase price of fair values of assets and liabilities acquired | $ 73,906,000 | |
Contingent consideration | $ 1,056,000 | $ 1,056,000 |
Quality Thermistor, Inc. | ||
Business Acquisition [Line Items] | ||
Percentage of outstanding shares acquired | 100.00% | |
Purchase price | $ 75,000,000 | |
Quality Thermistor, Inc. | Maximum | ||
Business Acquisition [Line Items] | ||
Contingent earn out based on sales performance objectives | $ 5,000,000 |
Business Acquisitions - Summary
Business Acquisitions - Summary of Consideration Paid and Fair Values of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | 1 Months Ended | 9 Months Ended | 12 Months Ended | |
Jul. 31, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Consideration Paid | ||||
Cash paid, net of cash acquired of $567 | $ 72,850 | |||
Contingent consideration | 1,056 | $ 1,056 | ||
Purchase price | 73,906 | $ 0 | $ 73,588 | |
Fair Values | ||||
Current assets | 6,221 | |||
Property, plant and equipment | 2,567 | |||
Other assets | 29 | |||
Goodwill | 34,999 | $ 106,056 | $ 106,056 | |
Intangible assets | 32,800 | |||
Fair value of assets acquired | 76,616 | |||
Less fair value of liabilities acquired | (2,710) | |||
Purchase price | $ 73,906 |
Business Acquisitions - Summa_2
Business Acquisitions - Summary of Consideration Paid and Fair Values of Assets Acquired and Liabilities Assumed (Parenthetical) (Details) $ in Thousands | 1 Months Ended |
Jul. 31, 2019USD ($) | |
Business Combinations [Abstract] | |
Cash acquired from acquisition | $ 567 |
Business Acquisitions - Summa_3
Business Acquisitions - Summary of Carrying Amounts and Weighted Average Lives of Acquired Intangible Assets (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2020USD ($) | |
Acquired Finite Lived Intangible Assets [Line Items] | |
Carrying Value | $ 32,800 |
Customer lists/relationships | |
Acquired Finite Lived Intangible Assets [Line Items] | |
Carrying Value | $ 31,000 |
Weighted Average Amortization Period | 15 years |
Technology and other intangibles | |
Acquired Finite Lived Intangible Assets [Line Items] | |
Carrying Value | $ 1,800 |
Weighted Average Amortization Period | 5 years |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements - Additional Information (Details) | Sep. 30, 2020 |
ASU No. 2018-13 | |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |
Change in Accounting Principle, Accounting Standards Update, Adopted | true |
Change in Accounting Principle, Accounting Standards Update, Adoption Date | Jan. 1, 2020 |
Change in Accounting Principle, Accounting Standards Update, Immaterial Effect | true |
ASU No. 2016-16 | |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |
Change in Accounting Principle, Accounting Standards Update, Adopted | true |
Change in Accounting Principle, Accounting Standards Update, Adoption Date | Jan. 1, 2020 |
Change in Accounting Principle, Accounting Standards Update, Immaterial Effect | true |
ASU No. 2016-13 | |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |
Change in Accounting Principle, Accounting Standards Update, Adopted | true |
Change in Accounting Principle, Accounting Standards Update, Adoption Date | Jan. 1, 2020 |
Change in Accounting Principle, Accounting Standards Update, Immaterial Effect | true |