Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | Apr. 24, 2019 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | GENTEX CORPORATION | |
Entity Central Index Key | 0000355811 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Common Stock, Shares Outstanding | 255,581,668 |
Unaudited Condensed Consolidate
Unaudited Condensed Consolidated Balance Sheets - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | |
CURRENT ASSETS | ||||
Cash and cash equivalents | $ 221,688,575 | $ 217,025,278 | [1] | |
Short-term investments | 180,313,222 | 169,412,999 | [1] | |
Accounts receivable, net | 244,266,296 | 213,537,799 | [1] | |
Inventories | 225,303,042 | 225,281,599 | [1] | |
Prepaid expenses and other | 14,824,876 | 25,672,579 | [1] | |
Total current assets | 886,396,011 | 850,930,254 | [1] | |
PLANT AND EQUIPMENT—NET | 492,613,112 | 498,473,766 | ||
OTHER ASSETS | ||||
Goodwill | 307,365,845 | 307,365,845 | [1] | |
Long-term investments | 126,528,508 | 137,979,082 | [1] | |
Intangible assets, net | 264,850,000 | 269,675,000 | [1] | |
Patents and other assets, net | 22,612,152 | 21,010,121 | [1] | |
Total other assets | 721,356,505 | 736,030,048 | [1] | |
Total assets | 2,100,365,628 | 2,085,434,068 | [1] | |
CURRENT LIABILITIES | ||||
Accounts payable | 90,117,496 | 92,810,316 | [1] | |
Accrued liabilities | 94,376,376 | 76,350,603 | [1] | |
Total current liabilities | 184,493,872 | 169,160,919 | [1] | |
OTHER NON-CURRENT LIABILITIES | 5,509,373 | 0 | [1] | |
DEFERRED INCOME TAXES | 53,287,636 | 54,521,489 | [1] | |
Total liabilities | 243,290,881 | 223,682,408 | ||
SHAREHOLDERS’ INVESTMENT | ||||
Common stock | 15,335,060 | 15,559,717 | [1] | |
Additional paid-in capital | 748,641,461 | 745,324,144 | [1] | |
Retained earnings | 1,093,373,960 | 1,102,468,137 | [1] | |
Accumulated other comprehensive (loss) income | (275,734) | (1,600,338) | [1] | $ 2,212,989 |
Total shareholders’ investment | 1,857,074,747 | 1,861,751,660 | [1] | $ 1,969,977,496 |
Total liabilities and shareholders’ investment | $ 2,100,365,628 | $ 2,085,434,068 | [1] | |
[1] | The condensed consolidated balance sheet at December 31, 2018 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. |
Unaudited Condensed Consolida_2
Unaudited Condensed Consolidated Statements of Income - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Income Statement [Abstract] | ||
NET SALES | $ 468,588,997 | $ 465,420,105 |
COST OF GOODS SOLD | 298,944,494 | 292,791,704 |
Gross profit | 169,644,503 | 172,628,401 |
OPERATING EXPENSES: | ||
Engineering, research and development | 28,089,181 | 26,049,258 |
Selling, general & administrative | 19,958,991 | 18,063,810 |
Total operating expenses | 48,048,172 | 44,113,068 |
Income from operations | 121,596,331 | 128,515,333 |
OTHER INCOME (LOSS) | ||
Investment income | 3,262,741 | 2,037,605 |
Other income (loss), net | 49,469 | 1,206,993 |
Total Other Income | 3,312,210 | 3,244,598 |
INCOME BEFORE PROVISION FOR INCOME TAXES | 124,908,541 | 131,759,931 |
PROVISION FOR INCOME TAXES | 20,628,130 | 20,511,188 |
NET INCOME | $ 104,280,411 | $ 111,248,743 |
EARNINGS PER SHARE: | ||
Basic (in dollars per share) | $ 0.40 | $ 0.40 |
Diluted (in dollars per share) | 0.40 | 0.40 |
Cash Dividends Declared per Share (in dollars per share) | $ 0.115 | $ 0.110 |
Unaudited Condensed Consolida_3
Unaudited Condensed Consolidated Statements of Comprehensive Income - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 104,280,411 | $ 111,248,743 |
Other comprehensive income (loss) before tax: | ||
Foreign currency translation adjustments | 298,999 | 1,626,178 |
Unrealized gains on derivatives | 0 | 67,047 |
Unrealized gains (losses) on debt securities, net | 1,298,236 | (21,280) |
Other comprehensive income, before tax | 1,597,235 | 1,671,945 |
Expense for income taxes related to components of other comprehensive income | 272,631 | 9,611 |
Other comprehensive income, net of tax | 1,324,604 | 1,662,334 |
Comprehensive Income | $ 105,605,015 | $ 112,911,077 |
Unaudited Condensed Consolida_4
Unaudited Condensed Consolidated Statements of Shareholders' Investment - USD ($) | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning balance | $ 1,861,751,660 | [1] | $ 2,049,518,261 |
Issuance of common stock and the tax benefit of stock plan transactions | $ 10,514,554 | 36,267,047 | |
Repurchases of common stock (in shares) | (4,700,000) | ||
Repurchases of common stock | $ (96,267,229) | (202,572,378) | |
Stock-based compensation expense related to stock options, employee stock purchases and restricted stock | 4,862,947 | 3,977,471 | |
Impact of ASU 2016-01 adoption | 0 | ||
Dividends declared | (29,392,200) | (30,123,981) | |
Net income | 104,280,411 | 111,248,743 | |
Other comprehensive income | 1,324,604 | 1,662,333 | |
Ending balance | $ 1,857,074,747 | $ 1,969,977,496 | |
Common Stock | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning balance (in shares) | 259,328,613 | 280,281,321 | |
Beginning balance | $ 15,559,717 | $ 16,816,879 | |
Issuance of common stock and the tax benefit of stock plan transactions (in shares) | 980,670 | 2,904,555 | |
Issuance of common stock and the tax benefit of stock plan transactions | $ 58,840 | $ 174,274 | |
Repurchases of common stock (in shares) | (4,724,938) | (9,331,499) | |
Repurchases of common stock | $ (283,497) | $ (559,890) | |
Ending balance (in shares) | 255,584,345 | 273,854,377 | |
Ending balance | $ 15,335,060 | $ 16,431,263 | |
Additional Paid-In Capital | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning balance | 745,324,144 | 723,510,672 | |
Issuance of common stock and the tax benefit of stock plan transactions | 10,455,714 | 36,092,773 | |
Repurchases of common stock | (12,001,344) | (21,089,188) | |
Stock-based compensation expense related to stock options, employee stock purchases and restricted stock | 4,862,947 | 3,977,471 | |
Ending balance | 748,641,461 | 742,491,728 | |
Retained Earnings | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning balance | 1,102,468,137 | 1,301,997,327 | |
Repurchases of common stock | (83,982,388) | (180,923,300) | |
Impact of ASU 2016-01 adoption | 6,642,727 | ||
Dividends declared | (29,392,200) | (30,123,981) | |
Net income | 104,280,411 | 111,248,743 | |
Ending balance | 1,093,373,960 | 1,208,841,516 | |
Accumulated Other Comprehensive Income (Loss) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning balance | (1,600,338) | 7,193,383 | |
Impact of ASU 2016-01 adoption | (6,642,727) | ||
Other comprehensive income | 1,324,604 | 1,662,333 | |
Ending balance | $ (275,734) | $ 2,212,989 | |
[1] | The condensed consolidated balance sheet at December 31, 2018 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. |
Unaudited Condensed Consolida_5
Unaudited Condensed Consolidated Statements of Shareholders' Investment (Parenthetical) - $ / shares | 1 Months Ended | 3 Months Ended | |
Jan. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Statement of Stockholders' Equity [Abstract] | |||
Dividends declared (in dollars per share) | $ 0.110 | $ 0.115 | $ 0.110 |
Unaudited Condensed Consolida_6
Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 104,280,411 | $ 111,248,743 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 28,098,804 | 28,046,434 |
(Gain) on disposal of assets | (43,338) | (4,374) |
Loss on disposal of assets | 122,296 | 8,677 |
(Gain) on sale of investments | (88,576) | (1,245,075) |
Loss on sale of investments | 0 | 529,484 |
Deferred income taxes | (1,233,853) | (2,746,797) |
Stock-based compensation expense related to employee stock options, employee stock purchases and restricted stock | 4,862,947 | 3,977,471 |
Change in operating assets and liabilities: | ||
Accounts receivable, net | (30,728,497) | (15,305,451) |
Inventories | (21,443) | 9,532,631 |
Prepaid expenses and other | 10,847,705 | 2,872,873 |
Accounts payable | (2,692,820) | (12,590,570) |
Accrued liabilities, excluding dividends declared and short-term debt | 20,436,582 | 23,125,002 |
Net cash provided by operating activities | 133,840,218 | 147,449,048 |
Activity in available-for-sale securities: | ||
Sales proceeds | 17,139,689 | 53,822,052 |
Maturities and calls | 3,000,000 | 3,000,000 |
Purchases | (18,475,158) | (1,213,405) |
Plant and equipment additions | (16,844,301) | (26,247,890) |
Proceeds from sale of plant and equipment | 117,455 | 67,400 |
Decrease in other assets | 164,215 | 45,322 |
Net cash (used for) provided by investing activities | (14,898,100) | 29,473,479 |
CASH FLOWS (USED FOR) FINANCING ACTIVITIES: | ||
Repayment of debt | 0 | (28,000,000) |
Issuance of common stock from stock plan transactions | 10,514,554 | 36,267,047 |
Cash dividends paid | (28,526,146) | (28,028,132) |
Repurchases of common stock | (96,267,229) | (202,572,378) |
Net cash (used for) financing activities | (114,278,821) | (222,333,463) |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 4,663,297 | (45,410,936) |
CASH AND CASH EQUIVALENTS, beginning of period | 217,025,278 | 569,734,496 |
CASH AND CASH EQUIVALENTS, end of period | $ 221,688,575 | $ 524,323,560 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of PresentationThe unaudited condensed consolidated financial statements included herein have been prepared by the Company, 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 accounting principles generally accepted in the United States have been condensed or omitted pursuant to such rules and regulations, although the Company believes that the disclosures are adequate to make the information presented not misleading. It is suggested that these unaudited condensed consolidated financial statements be read in conjunction with the financial statements and notes thereto included in the Company's 2018 annual report on Form 10-K. In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all adjustments, consisting of only a normal and recurring nature, necessary to present fairly the financial position of the Company as of March 31, 2019, and the results of operations and cash flows for the interim periods presented. |
Adoption of New Accounting Pron
Adoption of New Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2019 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Adoption of New Accounting Pronouncements | Adoption of New Accounting Pronouncements New Accounting Pronouncements Adopted in Fiscal Year 2019 Effective January 1, 2019, the Company adopted Accounting Standards Update ("ASU") 2016-02, Leases , which provides guidance for lease accounting. The new guidance contained in the ASU stipulates that lessees will need to recognize a right-of-use ("ROU") asset and a lease liability for substantially all leases (other than leases that meet the definition of a short-term lease). The liability will be equal to the present value of lease payments. Treatment in the consolidated statements of income will be similar to the historical treatment of operating and capital leases. The adoption of this standard did not have a material impact on the Company's consolidated balance sheet or consolidated income statement. Disclosures are now required to meet the objective of enabling users of financial statements to assess the amount, timing, and uncertainty of cash flows arising from leases. New Accounting Pronouncements Not Yet Adopted In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instrument s. The standard requires a change in the measurement approach for credit losses on financial assets measured on an amortized cost basis from an incurred loss method to an expected loss method, thereby eliminating the requirement that a credit loss be considered probable to impact the valuation of a financial asset measured on an amortized cost basis. The standard requires the measurement of expected credit losses to be based on relevant information about past events, including historical experience, current conditions, and a reasonable and supportable forecast that affects the collectability of the related financial asset. The Company will be required to adopt ASU 2016-13 as of January 1, 2020. Early adoption is permitted. The Company is currently evaluating the impact of ASU 2016-13 on the Company’s consolidated financial statements. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 3 Months Ended |
Mar. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill represents the cost of an acquisition in excess of the fair values assigned to identifiable net assets acquired. The Company recorded Goodwill of $307.4 million as part of the HomeLink ® acquisition. The carrying value of Goodwill as of December 31, 2018 and March 31, 2019 was $307.4 million. In addition to annual impairment testing, which is performed as of the first day of the fourth quarter, the Company continuously monitors for events and circumstances that could negatively impact the key assumptions in determining fair value thus resulting in the need for interim impairment testing, including long-term revenue growth projections, profitability, discount rates, recent market valuations from transactions by comparable companies, volatility in the Company's market capitalization, and general industry, market and macroeconomic conditions. No such events or circumstances in the most recently completed quarter indicated the need for interim impairment testing. The patents and intangible assets and related change in carrying values are set forth in the tables below: As of March 31, 2019: Other Intangible Assets Gross Accumulated Amortization Net Assumed Useful Life Gentex Patents $ 36,767,886 $ (21,456,037) $ 15,311,849 various Other Intangible Assets HomeLink ® Trade Names and Trademarks $ 52,000,000 $ — $ 52,000,000 Indefinite HomeLink ® Technology 180,000,000 (82,500,000) 97,500,000 12 years Existing Customer Platforms 43,000,000 (23,650,000) 19,350,000 10 years Exclusive Licensing Agreement 96,000,000 — 96,000,000 Indefinite Total Other Intangible Assets $ 371,000,000 $ (106,150,000) $ 264,850,000 Total Patents & Other Intangible Assets $ 407,767,886 $ (127,606,037) $ 280,161,849 As of December 31, 2018: Other Intangible Assets Gross Accumulated Amortization Net Assumed Useful Life Gentex Patents $ 36,737,434 $ (21,014,168) $ 15,723,266 various Other Intangible Assets HomeLink ® Trade Names and Trademarks $ 52,000,000 $ — $ 52,000,000 Indefinite HomeLink ® Technology 180,000,000 (78,750,000) 101,250,000 12 years Existing Customer Platforms 43,000,000 (22,575,000) 20,425,000 10 years Exclusive Licensing Agreement 96,000,000 — 96,000,000 Indefinite Total Other Intangible Assets $ 371,000,000 $ (101,325,000) $ 269,675,000 Total Patents & Other Intangible Assets $ 407,737,434 $ (122,339,168) $ 285,398,266 Amortization expense on patents and intangible assets was approximately $5.6 million during the three ended March 31, 2019, compared to approximately $5.7 million for the same period ended March 31, 2018, . Excluding the impact of any future acquisitions, the Company continues to estimate amortization expense for each of the years ended December 31, 2019, 2020, and 2021 to be approximately $22 million annually, approximately $21 million for 2022, and approximately $19 million for the year ended December 31, 2023. |
Investments
Investments | 3 Months Ended |
Mar. 31, 2019 | |
Investments [Abstract] | |
Investments | The Company follows the provisions of ASC 820, “Fair Value Measurements and Disclosures” for its financial assets and liabilities, and for its non-financial assets and liabilities subject to fair value measurements. ASC 820 provides a framework for measuring the fair value of assets and liabilities. This framework is intended to provide increased consistency in how fair value determinations are made under various existing accounting standards that permit, or in some cases, require estimates of fair-market value. This standard also expanded financial statement disclosure requirements about a company’s use of fair-value measurements, including the effect of such measurement on earnings. The cost of securities sold is based on the specific identification method. The Company determines the fair value of its government securities, municipal bonds, and corporate bonds by utilizing monthly valuation statements that are provided by its broker. The broker determines the investment valuation by utilizing the bid price in the market and also refers to third party sources to validate valuations, and as such are classified as Level 2 assets. The Company's certificates of deposit have remaining maturities of less than one year and are considered as Level 1 assets. These investments are carried at cost, which approximates fair value. The Company will also periodically make technology investments in certain non-consolidated third-parties for ownership interests of less than 20%. These investments do not have readily determinable fair values, and the Company has not identified any observable events that would cause adjustment of the valuation to date, and therefore these investments were held at cost at a total of $4.1 million and $3.85 million as of March 31, 2019 and December 31, 2018, respectively. These investments are classified within Long-Term Investments in the consolidated balance sheet. Assets or liabilities that have recurring fair value measurements are shown below as of March 31, 2019 and December 31, 2018: As of March 31, 2019 Fair Value Measurements at Reporting Date Using Total as of Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Description March 31, 2019 (Level 1) (Level 2) (Level 3) Cash & Cash Equivalents $ 221,688,575 $ 221,688,575 $ — $ — Short-Term Investments: Certificate of Deposit 150,299,384 150,299,384 — — Government Securities 21,109,868 — 21,109,868 — Corporate Bonds 5,982,688 — 5,982,688 — Other 2,921,282 2,921,282 — — Long-Term Investments: Corporate Bonds 66,610,295 — 66,610,295 — Municipal Bonds 21,283,707 — 21,283,707 — Government Securities 34,534,506 — 34,534,506 — Total $ 524,430,305 $ 374,909,241 $ 149,521,064 $ — As of December 31, 2018 Fair Value Measurements at Reporting Date Using Total as of Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Description December 31, 2018 (Level 1) (Level 2) (Level 3) Cash & Cash Equivalents $ 217,025,278 $ 217,025,278 $ — $ — Short-Term Investments: Certificate of Deposit 150,299,384 150,299,384 — — Government Securities 9,176,227 — 9,176,227 — Corporate Bonds 6,967,700 — 6,967,700 — Other 2,219,688 2,219,688 — — Long-Term Investments: Corporate Bonds 60,369,930 — 60,369,930 — Municipal Bonds 18,025,432 — 18,025,432 — Government Securities 56,483,720 — 56,483,720 — Total $ 520,567,359 $ 369,544,350 $ 151,023,009 $ — The amortized cost, unrealized gains and losses, and market value of investment securities are shown as of March 31, 2019 and December 31, 2018: As of March 31, 2019 Unrealized Cost Gains Losses Market Value Short-Term Investments: Certificate of Deposit $ 150,299,384 $ — $ — $ 150,299,384 Government Securities 21,101,631 9,901 (1,664) 21,109,868 Corporate Bonds 5,979,056 4,095 (463) 5,982,688 Other 2,921,282 — — 2,921,282 Long-Term Investments: Corporate Bonds 66,172,642 504,809 (67,156) 66,610,295 Municipal Bonds 20,851,133 432,574 — 21,283,707 Government Securities 34,316,447 218,059 $ — 34,534,506 Total $ 301,641,575 $ 1,169,438 $ (69,283) $ 302,741,730 As of December 31, 2018 Unrealized Cost Gains Losses Market Value Short-Term Investments: Certificate of Deposit $ 150,299,384 $ — $ — $ 150,299,384 Government Securities 9,186,586 — (10,359) 9,176,227 Corporate Bonds 6,981,305 — (13,605) 6,967,700 Other 2,219,688 — — 2,219,688 Long-Term Investments: Corporate Bonds 60,659,498 50,340 (339,908) 60,369,930 Municipal Bonds 17,840,518 184,914 — 18,025,432 Government Securities 56,280,552 205,553 (2,385) 56,483,720 Total $ 303,467,531 $ 440,807 $ (366,257) $ 303,542,081 Unrealized losses on investments as of March 31, 2019, are as follows: Aggregate Unrealized Losses Aggregate Fair Value Less than one year $ 69,283 $ 20,786,455 Greater than one year — — Total $ 69,283 $ 20,786,455 Unrealized losses on investments as of December 31, 2018, are as follows: Aggregate Unrealized Losses Aggregate Fair Value Less than one year $ 365,824 $ 68,722,980 Greater than one year 433 3,000,000 Total $ 366,257 $ 71,722,980 ASC 320, “Accounting for Certain Investments in Debt and Equity Securities”, as amended, provides guidance on determining when an investment is other than temporarily impaired. No investment losses were considered to be other than temporary during the periods presented. The Company has the intention and current ability to hold its debt investments until the amortized cost basis has been recovered. Fixed income securities as of March 31, 2019 have contractual maturities as follows: Due within one year $ 177,391,940 Due between one and five years 111,377,100 Due over five years 11,051,408 $ 299,820,448 |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories consisted of the following at the respective balance sheet dates: March 31, 2019 December 31, 2018 Raw materials $ 143,533,414 $ 139,058,541 Work-in-process 35,811,334 35,386,615 Finished goods 45,958,294 50,836,443 Total Inventory $ 225,303,042 $ 225,281,599 |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The Company has unvested share-based payment awards with a right to receive non-forfeitable dividends, which are considered participating securities under ASC Topic 260, Earnings Per Share . The Company allocates earnings to participating securities and computes earnings per share using the two-class method. Under the two-class method, net income per share is computed by dividing net income allocated to common shareholders by the weighted average number of common shares outstanding for the period. In applying the two-class method, net income is allocated to both common shares and participating securities based on their respective weighted average shares outstanding for the period. The following table sets forth the computation of basic and diluted net income per common share under the two-class method for the three months ended March 31, 2019 and March 31, 2018, respectively: Three months ended March 31, 2019 2018 Basic Earnings Per Share Net Income $ 104,280,411 $ 111,248,743 Less: Allocated to participating securities 1,081,933 833,316 Net Income available to common shareholders $ 103,198,478 $ 110,415,427 Basic weighted average shares outstanding 257,822,836 274,759,516 Net Income per share - Basic $ 0.40 $ 0.40 Diluted Earnings Per Share Allocation of Net Income used in basic computation $ 103,198,478 $ 110,415,427 Reallocation of undistributed earnings 3,813 6,011 Net Income per share - Diluted $ 103,202,291 $ 110,421,438 Number of shares used in basic computation 257,822,836 274,759,516 Additional dilutive common stock equivalents 1,282,396 2,749,912 Diluted weighted average shares outstanding 259,105,232 277,509,428 Net income per share - Diluted $ 0.40 $ 0.40 Shares related to stock plans not included in diluted average common shares outstanding because their effect would be anti-dilutive 1,799,477 156,467 |
Stock-Based Compensation Plans
Stock-Based Compensation Plans | 3 Months Ended |
Mar. 31, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation Plans | Stock-Based Compensation Plans As of March 31, 2019, the Company had four equity incentive plans, which include two stock option plans, a restricted stock plan and an employee stock purchase plan. Those plans and any prior material amendments thereto have previously been approved by shareholders. In February 2019, the Company's Compensation Committee and Board of Directors approved the Gentex Corporation 2019 Omnibus Incentive Plan or 2019 Omnibus Plan, subject to shareholder approval. The 2019 Omnibus Plan provides for the potential awards to: i) employees; and ii) nonemployee directors of the Company or its subsidiaries, which awards may be stock options, both incentive stock options and non-qualified stock options, appreciation rights, restricted stock, restricted stock units, performance shares awards and performance units, and other awards that are stock-based, cash-based or a combination of both. The 2019 Omnibus Plan is intended to replace the Company's shareholder approved Employee Stock Option Plan, Second Restricted Stock Plan, and Amended and Restated Non-Employee Director Stock Option Plan (the "Prior Plans"), upon shareholder approval, though first quarter 2019 grants to non-officer employees were made under the Prior Plans since the 2019 Omnibus Plan has not yet been approved by Shareholders. Any existing awards previously granted under the Prior Plans, including those made to non-officers in the first quarter of 2019, will continue to remain outstanding in accordance with their terms and be governed thereby. If, however, the 2019 Omnibus Plan is approved by the shareholders, all future awards thereafter will be made under the 2019 Omnibus Plan, including those made to officers in the first quarter of 2019. If the 2019 Omnibus Plan is not approved by shareholders, it will not be adopted and the Company will continue to operate under the Prior Plans until their expiration. Readers should refer to Note 5 of the consolidated financial statements in the Company's Annual Report on Form 10-K for the calendar year ended December 31, 2018, for additional information related to the Prior Plans. The Company recognized compensation expense for share-based payments of $4,786,794 for the three months ended March 31, 2019, and $3,901,316 for the three months ended March 31, 2018. Compensation cost for share based payment awards capitalized as part of inventory as of March 31, 2019 and March 31, 2018 was $295,973 and $258,651, respectively. Employee Stock Option Plan The Company has an employee stock option plan covering 24,000,000 shares of common stock. The purpose of the plan is to provide an opportunity to use stock options as a means of recruiting new managerial and technical personnel and as a means for retaining certain employees of the Company by allowing them to purchase shares of common stock of the Corporation and thereby having an additional incentive to contribute to the prosperity of the Company. The fair value of each option grant in the employee stock option plan was estimated on the date of grant using the Black-Scholes option pricing model with the following weighted-average assumptions for the indicated periods: Three months ended March 31, 2019 2018 Dividend Yield (1) 2.03 % 2.02 % Expected volatility (2) 23.56 % 23.26 % Risk-free interest rate (3) 2.23 % 2.56 % Expected term of options (years) (4) 4.19 4.19 Weighted-avg. grant date fair value $3.69 $4.18 1. Represents the Company’s estimated cash dividend yield over the expected term of option grant. 2. Amount is determined based on analysis of historical price volatility of the Company’s common stock. The expected volatility is based on the daily percentage change in the price of the stock over a period equal to the expected term of the option grant. 3. Represents the U.S. Treasury yield over the expected term of the option grant. 4. Represents the period of time that options granted are expected to be outstanding. Based on analysis of historical option exercise activity, the Company has determined that all employee groups exhibit similar exercise and post-vesting termination behavior. Under the employee stock option plan, the option exercise price equals the stock’s market price on the date of grant. The options vest after one to five years, and expire after five to ten years. As of March 31, 2019, there was $7,650,472 of unrecognized compensation cost related to share-based payments, which is expected to be recognized over the remaining vesting periods. Non-employee Director Stock Option Plan The Company has a non-employee director stock option plan covering 1,000,000 shares of common stock. As of March 31, 2019, there was $4,302 of unrecognized compensation cost under the non-employee director plan related to share-based payments. The Company has granted options on 483,940 shares under the non-employee director plan through March 31, 2019. Under the non-employee director plan, the option exercise price equals the stock’s market price on the date of grant. The options vest after six months, and expire after ten years. Employee Stock Purchase Plan The Company has an employee stock purchase plan covering 2,000,000 shares of common stock. Under the plan, the Company sells shares at 85% of the stock’s market price at date of purchase. Under ASC 718, the 15% discounted value is recognized as compensation expense. As of March 31, 2019, the Company has granted 1,026,404 shares under this plan. Restricted Stock Plan The Company has a restricted stock plan covering 9,000,000 shares of common stock. The purpose of the restricted stock plan is to permit grants of shares, subject to restrictions, to employees of the Company as a means of retaining and rewarding them for performance and to increase their ownership in the Company. Shares awarded under the restricted stock plan entitle the shareholder to all rights of common stock ownership except that the shares may not be sold, transferred, pledged, exchanged or otherwise disposed of during the restriction period. The restriction period is determined by the Compensation Committee, appointed by the Board of Directors, but may not exceed ten years under the terms of the plan. As of March 31, 2019, the Company had unearned stock-based compensation of $36,944,099 associated with these restricted stock grants. The unearned stock-based compensation related to these grants is being amortized to compensation expense over the applicable restriction periods. Amortization expense from restricted stock grants in the three months ended March 31, 2019 was $2,723,579, and for the three months ended March 31, 2018 was $1,643,060. 2019 Omnibus Incentive Plan |
Comprehensive Income
Comprehensive Income | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Comprehensive Income | Comprehensive IncomeComprehensive income reflects the change in equity of a business enterprise during a period from transactions and other events and circumstances from non-owner sources. For the Company, comprehensive income represents net income adjusted for unrealized gains and losses on certain debt investments, foreign currency translation adjustments, and derivatives. The following table presents the net changes in the Company's accumulated other comprehensive income (loss) by component: (All amounts shown are net of tax). Three months ended March 31, 2019 2018 Foreign currency translation adjustments: Balance at beginning of period $ (1,674,887) $ 645,030 Other Comprehensive income before reclassifications 298,999 1,626,178 Net current-period change 298,999 1,626,178 Balance at end of period (1,375,888) 2,271,208 Unrealized gains (losses) on available-for-sale debt securities: Balance at beginning of period 74,549 (16,349) Other Comprehensive income before reclassifications 1,095,581 548,506 Amounts reclassified from accumulated other comprehensive income (69,976) (565,317) Net current-period change 1,025,605 (16,811) Balance at end of period 1,100,154 (33,160) Unrealized gains (losses) on derivatives: Balance at beginning of period — (78,026) Other comprehensive income before reclassifications — 43,173 Amounts reclassified from accumulated other comprehensive income — 9,794 Net current-period change — 52,967 Balance at end of period — (25,059) Accumulated other comprehensive (loss) income, end of period $ (275,734) $ 2,212,989 The following table presents details of reclassifications out of accumulated other comprehensive income for the three months ended March 31, 2019 and 2018. Details about Accumulated Other Comprehensive Income Components Affected Line item in the Statement of Consolidated Income Three Months Ended March 31, 2019 2018 Unrealized gains on available-for-sale debt securities Realized gain on sale of securities $ 88,576 $ 715,591 Other income (loss), net Provision for income taxes (18,600) (150,274) Provision for income taxes $ 69,976 $ 565,317 Net of tax Unrealized losses on derivatives Realized loss on interest rate swap $ — $ (12,398) Other income (loss), net Provision for income taxes — 2,604 Provision for income taxes $ — $ (9,794) Net of tax Total net reclassifications for the period $ 69,976 $ 555,523 Net of tax |
Debt and Financing Arrangements
Debt and Financing Arrangements | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt and Financing Arrangements | Debt and Financing Arrangements On October 15, 2018, as previously disclosed, the Company entered into a new Credit Agreement (“Credit Agreement”) with PNC as the administrative agent and sole lender. Pursuant to this new Credit Agreement, the Company has access to a $150 million senior revolving credit facility (“Revolver”). Under the terms of the Credit Agreement, the Company is entitled to further request an additional aggregate principal amount of up to $100 million, subject to the satisfaction of certain conditions. In addition, the Company is entitled to the benefit of swing loans from amounts otherwise available under the Revolver in the aggregate principal amount of up to $20 million and to request Letters of Credit from amounts otherwise available under the Revolver in the aggregate principle amount up to $20 million, both subject to certain conditions. The obligations of the Company under the Credit Agreement are not secured, but are subject to certain covenants. As of March 31, 2019, there was no outstanding balance on the Revolver. The Revolver expires on October 15, 2023. The Credit Agreement contains customary representations and warranties and certain covenants that place certain limitations on the Company. As of March 31, 2019, the Company was in compliance with its covenants under the Credit Agreement. During the three months ended March 31, 2018, under a previous credit facility, interest expense was $0.5 million, which was netted with the "Other, net" section of the Unaudited Consolidated Statements of Income . |
Equity
Equity | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Equity | Equity The decrease in common stock during the three months ended March 31, 2019, was primarily due to the repurchases of 4.7 million shares, partially offset by the issuance of 1.0 million shares of the Company’s common stock under the Company’s stock-based compensation plans. The total net decrease was 3.7 million shares. The Company announced a $0.005 (1/2 cent) per share increase in its quarterly cash dividend rate during the first quarter of 2019. As such, the Company recorded a cash dividend of $0.115 during the first quarter of 2019 as compared to a cash dividend of $0.110 per share during the first quarter of 2018. The first quarter 2019 dividend of $29.4 million was declared on March 8, 2019, and was paid on April 24, 2019. |
Contingencies
Contingencies | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | ContingenciesThe Company is periodically involved in legal proceedings, legal actions and claims arising in the normal course of business, including proceedings relating to product liability, intellectual property, safety and health, employment and other matters. Such matters are subject to many uncertainties and outcomes are not predictable. The Company does not believe, however, that at the current time any of these matters constitute material pending legal proceedings that will have a material adverse effect on the financial position or future results of operations or cash flows of the Company. |
Segment Reporting
Segment Reporting | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment ReportingThe Company's automotive segment develops and manufactures digital vision and connected car products and electronics, including: automatic-dimming rearview mirrors with and without electronic features; non-auto dimming rearview mirrors with and without electronic features; and other electronics. The Company also develops and manufactures variably dimming windows for the aerospace industry and fire protection products for the commercial construction industry, which are combined into the "Other" segment shown below. Three months ended March 31, 2019 2018 Revenue: Automotive Products $ 455,798,643 $ 454,965,374 Other 12,790,354 10,454,731 Total $ 468,588,997 $ 465,420,105 Income from operations: Automotive Products $ 116,952,700 $ 124,962,159 Other 4,643,631 3,553,174 Total $ 121,596,331 $ 128,515,333 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income TaxesThe effective tax rate was 16.5% in the three months ended March 31, 2019 compared to 15.6% for the same period in 2018. Generally, effective tax rates for these periods differ from statutory federal income tax rates, due to provisions for state and local income taxes, permanent tax differences, and the foreign-derived intangible income tax deduction. The increase in the effective tax rate for the three months ended March 31, 2019 compared to the same period of 2018 was primarily due to a decrease in discrete tax benefits related to stock-based compensation in the current year. |
Revenue
Revenue | 3 Months Ended |
Mar. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue The following table shows the Company’s Automotive and Other Products revenue disaggregated by geographical location for Automotive Products for the three month period ended March 31, 2019 and 2018: Revenue Three Months Ended March 31, 2019 Three Months Ended Automotive Products U.S. $ 141,383,064 $ 140,312,987 Germany 78,449,927 91,793,541 Japan 56,333,694 49,832,997 Mexico 44,410,388 23,098,810 Other 135,221,570 149,927,039 Total Automotive Products $ 455,798,643 $ 454,965,374 Other Products (U.S.) 12,790,354 10,454,731 Total Revenue $ 468,588,997 $ 465,420,105 Revenue by geographic area may fluctuate based on many factors, including exposure to local economic, political and labor conditions; unexpected changes in laws, regulations, trade or monetary or fiscal policy, including interest rates, foreign currency exchange rates and changes in the rate of inflation in the U.S. and other foreign countries; and tariffs, quotas, customs and other import or export restrictions and other trade barriers. The following table disaggregates the Company’s Automotive and Other revenue by major source for the three month period ended March 31, 2019 and 2018: Revenue Three Months Ended March 31, 2019 Three Months Ended Automotive Segment Automotive Mirrors & Electronics $ 408,971,666 $ 404,241,628 HomeLink Modules* 46,826,977 50,723,746 Total Automotive Products $ 455,798,643 $ 454,965,374 Other Segment Fire Protection Products 5,852,232 5,279,658 Windows Products 6,938,122 5,175,073 Total Other $ 12,790,354 $ 10,454,731 *Excludes HomeLink revenue related to HomeLink modules integrated into automotive mirrors |
Leases
Leases | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Leases | Leases The Company has operating leases for corporate offices, warehouses, vehicles, and other equipment. Our leases have remaining lease terms of 1 year to 5 years. The weighted average remaining lease term for operating leases as of March 31, 2019 was 2 years, with a weighted average discount rate of 3.2%. Future minimum lease payments for operating leases as of March 31, 2019 were as follows: Year ending December 31, 2019 (excluding the three months ended March 31, 2019) $ 1,154,357 2020 558,695 2021 181,979 2022 53,786 2023 13,687 Thereafter 15,982 Total future minimum lease payments 1,978,486 Less imputed interest (29,772) Total $ 1,948,714 Reported as of March 31, 2019 Accrued Liabilities $ 1,305,696 Other Non-Current Liabilities 643,018 Total $ 1,948,714 |
Adoption of New Accounting Pr_2
Adoption of New Accounting Pronouncements (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Adoption of New Accounting Pronouncements | New Accounting Pronouncements Adopted in Fiscal Year 2019 Effective January 1, 2019, the Company adopted Accounting Standards Update ("ASU") 2016-02, Leases , which provides guidance for lease accounting. The new guidance contained in the ASU stipulates that lessees will need to recognize a right-of-use ("ROU") asset and a lease liability for substantially all leases (other than leases that meet the definition of a short-term lease). The liability will be equal to the present value of lease payments. Treatment in the consolidated statements of income will be similar to the historical treatment of operating and capital leases. The adoption of this standard did not have a material impact on the Company's consolidated balance sheet or consolidated income statement. Disclosures are now required to meet the objective of enabling users of financial statements to assess the amount, timing, and uncertainty of cash flows arising from leases. New Accounting Pronouncements Not Yet Adopted In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instrument s. The standard requires a change in the measurement approach for credit losses on financial assets measured on an amortized cost basis from an incurred loss method to an expected loss method, thereby eliminating the requirement that a credit loss be considered probable to impact the valuation of a financial asset measured on an amortized cost basis. The standard requires the measurement of expected credit losses to be based on relevant information about past events, including historical experience, current conditions, and a reasonable and supportable forecast that affects the collectability of the related financial asset. The Company will be required to adopt ASU 2016-13 as of January 1, 2020. Early adoption is permitted. The Company is currently evaluating the impact of ASU 2016-13 on the Company’s consolidated financial statements. |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets | The patents and intangible assets and related change in carrying values are set forth in the tables below: As of March 31, 2019: Other Intangible Assets Gross Accumulated Amortization Net Assumed Useful Life Gentex Patents $ 36,767,886 $ (21,456,037) $ 15,311,849 various Other Intangible Assets HomeLink ® Trade Names and Trademarks $ 52,000,000 $ — $ 52,000,000 Indefinite HomeLink ® Technology 180,000,000 (82,500,000) 97,500,000 12 years Existing Customer Platforms 43,000,000 (23,650,000) 19,350,000 10 years Exclusive Licensing Agreement 96,000,000 — 96,000,000 Indefinite Total Other Intangible Assets $ 371,000,000 $ (106,150,000) $ 264,850,000 Total Patents & Other Intangible Assets $ 407,767,886 $ (127,606,037) $ 280,161,849 As of December 31, 2018: Other Intangible Assets Gross Accumulated Amortization Net Assumed Useful Life Gentex Patents $ 36,737,434 $ (21,014,168) $ 15,723,266 various Other Intangible Assets HomeLink ® Trade Names and Trademarks $ 52,000,000 $ — $ 52,000,000 Indefinite HomeLink ® Technology 180,000,000 (78,750,000) 101,250,000 12 years Existing Customer Platforms 43,000,000 (22,575,000) 20,425,000 10 years Exclusive Licensing Agreement 96,000,000 — 96,000,000 Indefinite Total Other Intangible Assets $ 371,000,000 $ (101,325,000) $ 269,675,000 Total Patents & Other Intangible Assets $ 407,737,434 $ (122,339,168) $ 285,398,266 |
Investments (Tables)
Investments (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Investments [Abstract] | |
Investment Securities Stated at Fair Value | Assets or liabilities that have recurring fair value measurements are shown below as of March 31, 2019 and December 31, 2018: As of March 31, 2019 Fair Value Measurements at Reporting Date Using Total as of Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Description March 31, 2019 (Level 1) (Level 2) (Level 3) Cash & Cash Equivalents $ 221,688,575 $ 221,688,575 $ — $ — Short-Term Investments: Certificate of Deposit 150,299,384 150,299,384 — — Government Securities 21,109,868 — 21,109,868 — Corporate Bonds 5,982,688 — 5,982,688 — Other 2,921,282 2,921,282 — — Long-Term Investments: Corporate Bonds 66,610,295 — 66,610,295 — Municipal Bonds 21,283,707 — 21,283,707 — Government Securities 34,534,506 — 34,534,506 — Total $ 524,430,305 $ 374,909,241 $ 149,521,064 $ — As of December 31, 2018 Fair Value Measurements at Reporting Date Using Total as of Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Description December 31, 2018 (Level 1) (Level 2) (Level 3) Cash & Cash Equivalents $ 217,025,278 $ 217,025,278 $ — $ — Short-Term Investments: Certificate of Deposit 150,299,384 150,299,384 — — Government Securities 9,176,227 — 9,176,227 — Corporate Bonds 6,967,700 — 6,967,700 — Other 2,219,688 2,219,688 — — Long-Term Investments: Corporate Bonds 60,369,930 — 60,369,930 — Municipal Bonds 18,025,432 — 18,025,432 — Government Securities 56,483,720 — 56,483,720 — Total $ 520,567,359 $ 369,544,350 $ 151,023,009 $ — |
Schedule of Amortized Cost, Unrealized Gains And Losses, And Market Value of Investment Securities | The amortized cost, unrealized gains and losses, and market value of investment securities are shown as of March 31, 2019 and December 31, 2018: As of March 31, 2019 Unrealized Cost Gains Losses Market Value Short-Term Investments: Certificate of Deposit $ 150,299,384 $ — $ — $ 150,299,384 Government Securities 21,101,631 9,901 (1,664) 21,109,868 Corporate Bonds 5,979,056 4,095 (463) 5,982,688 Other 2,921,282 — — 2,921,282 Long-Term Investments: Corporate Bonds 66,172,642 504,809 (67,156) 66,610,295 Municipal Bonds 20,851,133 432,574 — 21,283,707 Government Securities 34,316,447 218,059 $ — 34,534,506 Total $ 301,641,575 $ 1,169,438 $ (69,283) $ 302,741,730 As of December 31, 2018 Unrealized Cost Gains Losses Market Value Short-Term Investments: Certificate of Deposit $ 150,299,384 $ — $ — $ 150,299,384 Government Securities 9,186,586 — (10,359) 9,176,227 Corporate Bonds 6,981,305 — (13,605) 6,967,700 Other 2,219,688 — — 2,219,688 Long-Term Investments: Corporate Bonds 60,659,498 50,340 (339,908) 60,369,930 Municipal Bonds 17,840,518 184,914 — 18,025,432 Government Securities 56,280,552 205,553 (2,385) 56,483,720 Total $ 303,467,531 $ 440,807 $ (366,257) $ 303,542,081 |
Schedule of Unrealized Loss on Investments | Unrealized losses on investments as of March 31, 2019, are as follows: Aggregate Unrealized Losses Aggregate Fair Value Less than one year $ 69,283 $ 20,786,455 Greater than one year — — Total $ 69,283 $ 20,786,455 Unrealized losses on investments as of December 31, 2018, are as follows: Aggregate Unrealized Losses Aggregate Fair Value Less than one year $ 365,824 $ 68,722,980 Greater than one year 433 3,000,000 Total $ 366,257 $ 71,722,980 |
Investments Classified by Contractual Maturity Date | Fixed income securities as of March 31, 2019 have contractual maturities as follows: Due within one year $ 177,391,940 Due between one and five years 111,377,100 Due over five years 11,051,408 $ 299,820,448 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories consisted of the following at the respective balance sheet dates: March 31, 2019 December 31, 2018 Raw materials $ 143,533,414 $ 139,058,541 Work-in-process 35,811,334 35,386,615 Finished goods 45,958,294 50,836,443 Total Inventory $ 225,303,042 $ 225,281,599 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share Basic And Diluted | The following table sets forth the computation of basic and diluted net income per common share under the two-class method for the three months ended March 31, 2019 and March 31, 2018, respectively: Three months ended March 31, 2019 2018 Basic Earnings Per Share Net Income $ 104,280,411 $ 111,248,743 Less: Allocated to participating securities 1,081,933 833,316 Net Income available to common shareholders $ 103,198,478 $ 110,415,427 Basic weighted average shares outstanding 257,822,836 274,759,516 Net Income per share - Basic $ 0.40 $ 0.40 Diluted Earnings Per Share Allocation of Net Income used in basic computation $ 103,198,478 $ 110,415,427 Reallocation of undistributed earnings 3,813 6,011 Net Income per share - Diluted $ 103,202,291 $ 110,421,438 Number of shares used in basic computation 257,822,836 274,759,516 Additional dilutive common stock equivalents 1,282,396 2,749,912 Diluted weighted average shares outstanding 259,105,232 277,509,428 Net income per share - Diluted $ 0.40 $ 0.40 Shares related to stock plans not included in diluted average common shares outstanding because their effect would be anti-dilutive 1,799,477 156,467 |
Stock-Based Compensation Plans
Stock-Based Compensation Plans (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Weighted-Average Assumptions For The Employee Stock Option Plan | The fair value of each option grant in the employee stock option plan was estimated on the date of grant using the Black-Scholes option pricing model with the following weighted-average assumptions for the indicated periods: Three months ended March 31, 2019 2018 Dividend Yield (1) 2.03 % 2.02 % Expected volatility (2) 23.56 % 23.26 % Risk-free interest rate (3) 2.23 % 2.56 % Expected term of options (years) (4) 4.19 4.19 Weighted-avg. grant date fair value $3.69 $4.18 1. Represents the Company’s estimated cash dividend yield over the expected term of option grant. 2. Amount is determined based on analysis of historical price volatility of the Company’s common stock. The expected volatility is based on the daily percentage change in the price of the stock over a period equal to the expected term of the option grant. 3. Represents the U.S. Treasury yield over the expected term of the option grant. 4. Represents the period of time that options granted are expected to be outstanding. Based on analysis of historical option exercise activity, the Company has determined that all employee groups exhibit similar exercise and post-vesting termination behavior. |
Comprehensive Income (Tables)
Comprehensive Income (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Schedule of AOCI | The following table presents the net changes in the Company's accumulated other comprehensive income (loss) by component: (All amounts shown are net of tax). Three months ended March 31, 2019 2018 Foreign currency translation adjustments: Balance at beginning of period $ (1,674,887) $ 645,030 Other Comprehensive income before reclassifications 298,999 1,626,178 Net current-period change 298,999 1,626,178 Balance at end of period (1,375,888) 2,271,208 Unrealized gains (losses) on available-for-sale debt securities: Balance at beginning of period 74,549 (16,349) Other Comprehensive income before reclassifications 1,095,581 548,506 Amounts reclassified from accumulated other comprehensive income (69,976) (565,317) Net current-period change 1,025,605 (16,811) Balance at end of period 1,100,154 (33,160) Unrealized gains (losses) on derivatives: Balance at beginning of period — (78,026) Other comprehensive income before reclassifications — 43,173 Amounts reclassified from accumulated other comprehensive income — 9,794 Net current-period change — 52,967 Balance at end of period — (25,059) Accumulated other comprehensive (loss) income, end of period $ (275,734) $ 2,212,989 |
Reclassifications out of other comprehensive income | The following table presents details of reclassifications out of accumulated other comprehensive income for the three months ended March 31, 2019 and 2018. Details about Accumulated Other Comprehensive Income Components Affected Line item in the Statement of Consolidated Income Three Months Ended March 31, 2019 2018 Unrealized gains on available-for-sale debt securities Realized gain on sale of securities $ 88,576 $ 715,591 Other income (loss), net Provision for income taxes (18,600) (150,274) Provision for income taxes $ 69,976 $ 565,317 Net of tax Unrealized losses on derivatives Realized loss on interest rate swap $ — $ (12,398) Other income (loss), net Provision for income taxes — 2,604 Provision for income taxes $ — $ (9,794) Net of tax Total net reclassifications for the period $ 69,976 $ 555,523 Net of tax |
Segment Reporting (Tables)
Segment Reporting (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Automotive and Other Segment Reporting | The Company's automotive segment develops and manufactures digital vision and connected car products and electronics, including: automatic-dimming rearview mirrors with and without electronic features; non-auto dimming rearview mirrors with and without electronic features; and other electronics. The Company also develops and manufactures variably dimming windows for the aerospace industry and fire protection products for the commercial construction industry, which are combined into the "Other" segment shown below. Three months ended March 31, 2019 2018 Revenue: Automotive Products $ 455,798,643 $ 454,965,374 Other 12,790,354 10,454,731 Total $ 468,588,997 $ 465,420,105 Income from operations: Automotive Products $ 116,952,700 $ 124,962,159 Other 4,643,631 3,553,174 Total $ 121,596,331 $ 128,515,333 |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table shows the Company’s Automotive and Other Products revenue disaggregated by geographical location for Automotive Products for the three month period ended March 31, 2019 and 2018: Revenue Three Months Ended March 31, 2019 Three Months Ended Automotive Products U.S. $ 141,383,064 $ 140,312,987 Germany 78,449,927 91,793,541 Japan 56,333,694 49,832,997 Mexico 44,410,388 23,098,810 Other 135,221,570 149,927,039 Total Automotive Products $ 455,798,643 $ 454,965,374 Other Products (U.S.) 12,790,354 10,454,731 Total Revenue $ 468,588,997 $ 465,420,105 Revenue by geographic area may fluctuate based on many factors, including exposure to local economic, political and labor conditions; unexpected changes in laws, regulations, trade or monetary or fiscal policy, including interest rates, foreign currency exchange rates and changes in the rate of inflation in the U.S. and other foreign countries; and tariffs, quotas, customs and other import or export restrictions and other trade barriers. The following table disaggregates the Company’s Automotive and Other revenue by major source for the three month period ended March 31, 2019 and 2018: Revenue Three Months Ended March 31, 2019 Three Months Ended Automotive Segment Automotive Mirrors & Electronics $ 408,971,666 $ 404,241,628 HomeLink Modules* 46,826,977 50,723,746 Total Automotive Products $ 455,798,643 $ 454,965,374 Other Segment Fire Protection Products 5,852,232 5,279,658 Windows Products 6,938,122 5,175,073 Total Other $ 12,790,354 $ 10,454,731 *Excludes HomeLink revenue related to HomeLink modules integrated into automotive mirrors |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Future minimum lease payments | Future minimum lease payments for operating leases as of March 31, 2019 were as follows: Year ending December 31, 2019 (excluding the three months ended March 31, 2019) $ 1,154,357 2020 558,695 2021 181,979 2022 53,786 2023 13,687 Thereafter 15,982 Total future minimum lease payments 1,978,486 Less imputed interest (29,772) Total $ 1,948,714 |
Lease liabilities | Reported as of March 31, 2019 Accrued Liabilities $ 1,305,696 Other Non-Current Liabilities 643,018 Total $ 1,948,714 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets (Narrative) (Details) - USD ($) | 3 Months Ended | ||||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | [1] | Sep. 27, 2013 | |
Finite-Lived Intangible Assets [Line Items] | |||||
Goodwill | $ 307,365,845 | $ 307,365,845 | |||
Amortization expense | 5,600,000 | $ 5,700,000 | |||
Amortization expense, 2019 | 22,000,000 | ||||
Amortization expense, 2020 | 22,000,000 | ||||
Amortization expense, 2021 | 22,000,000 | ||||
Amortization expense, 2022 | 21,000,000 | ||||
Amortization expense, 2023 | $ 19,000,000 | ||||
HomeLink® | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Goodwill | $ 307,400,000 | ||||
[1] | The condensed consolidated balance sheet at December 31, 2018 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets (Schedule of Intangible Assets) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | ||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets, accumulated amortization | $ (106,150,000) | $ (101,325,000) | |
Intangible assets, gross | 371,000,000 | 371,000,000 | |
Intangible assets, net | 264,850,000 | 269,675,000 | [1] |
Gentex Patents | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets, gross | 36,767,886 | 36,737,434 | |
Finite-lived intangible assets, accumulated amortization | (21,456,037) | (21,014,168) | |
Finite-lived intangible assets, net | 15,311,849 | 15,723,266 | |
Homelink Technology | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets, gross | 180,000,000 | 180,000,000 | |
Finite-lived intangible assets, accumulated amortization | (82,500,000) | (78,750,000) | |
Finite-lived intangible assets, net | $ 97,500,000 | $ 101,250,000 | |
Finite-lived intangible asset, useful life | 12 years | 12 years | |
Existing Customer Platforms | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets, gross | $ 43,000,000 | $ 43,000,000 | |
Finite-lived intangible assets, accumulated amortization | (23,650,000) | (22,575,000) | |
Finite-lived intangible assets, net | $ 19,350,000 | $ 20,425,000 | |
Finite-lived intangible asset, useful life | 10 years | 10 years | |
Patents and Other Intangible Assets | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets, accumulated amortization | $ (127,606,037) | $ (122,339,168) | |
Intangible assets, gross | 407,767,886 | 407,737,434 | |
Intangible assets, net | 280,161,849 | 285,398,266 | |
HomeLink Trade Names and Trademarks | |||
Finite-Lived Intangible Assets [Line Items] | |||
Indefinite-lived intangible assets | 52,000,000 | 52,000,000 | |
Exclusive Licensing Agreement | |||
Finite-Lived Intangible Assets [Line Items] | |||
Indefinite-lived intangible assets | $ 96,000,000 | $ 96,000,000 | |
[1] | The condensed consolidated balance sheet at December 31, 2018 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. |
Investments (Narrative) (Detail
Investments (Narrative) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2015 | Dec. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Technology investments in non-consolidated affiliates (less than) | 20.00% | |||
Technology investments in non-consolidated affiliates | $ 4,100,000 | $ 3,850,000 | ||
Equity investment losses were considered to be other than temporary | $ 0 | $ 0 |
Investments (Schedule of Assets
Investments (Schedule of Assets or Liabilities, Recurring Fair Value Measurements) (Details) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash & Cash Equivalents | $ 221,688,575 | $ 217,025,278 |
Market Value | 302,741,730 | 303,542,081 |
Investments and Cash | 524,430,305 | 520,567,359 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash & Cash Equivalents | 221,688,575 | 217,025,278 |
Investments and Cash | 374,909,241 | 369,544,350 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash & Cash Equivalents | 0 | 0 |
Investments and Cash | 149,521,064 | 151,023,009 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash & Cash Equivalents | 0 | 0 |
Investments and Cash | 0 | 0 |
Short-Term Investments | Certificates of Deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Market Value | 150,299,384 | 150,299,384 |
Short-Term Investments | Certificates of Deposit | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Market Value | 150,299,384 | 150,299,384 |
Short-Term Investments | Certificates of Deposit | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Market Value | 0 | 0 |
Short-Term Investments | Certificates of Deposit | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Market Value | 0 | 0 |
Short-Term Investments | Corporate Bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Market Value | 5,982,688 | 6,967,700 |
Short-Term Investments | Corporate Bonds | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Market Value | 0 | 0 |
Short-Term Investments | Corporate Bonds | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Market Value | 5,982,688 | 6,967,700 |
Short-Term Investments | Corporate Bonds | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Market Value | 0 | 0 |
Short-Term Investments | Government Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Market Value | 21,109,868 | 9,176,227 |
Short-Term Investments | Government Securities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Market Value | 0 | 0 |
Short-Term Investments | Government Securities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Market Value | 21,109,868 | 9,176,227 |
Short-Term Investments | Government Securities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Market Value | 0 | 0 |
Short-Term Investments | Other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Market Value | 2,921,282 | 2,219,688 |
Short-Term Investments | Other | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Market Value | 2,921,282 | 2,219,688 |
Short-Term Investments | Other | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Market Value | 0 | 0 |
Short-Term Investments | Other | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Market Value | 0 | 0 |
Long-Term Investments | Corporate Bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Market Value | 66,610,295 | 60,369,930 |
Long-Term Investments | Corporate Bonds | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Market Value | 0 | 0 |
Long-Term Investments | Corporate Bonds | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Market Value | 66,610,295 | 60,369,930 |
Long-Term Investments | Corporate Bonds | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Market Value | 0 | 0 |
Long-Term Investments | Government Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Market Value | 34,534,506 | 56,483,720 |
Long-Term Investments | Government Securities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Market Value | 0 | 0 |
Long-Term Investments | Government Securities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Market Value | 34,534,506 | 56,483,720 |
Long-Term Investments | Government Securities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Market Value | 0 | 0 |
Long-Term Investments | Municipal Bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Market Value | 21,283,707 | 18,025,432 |
Long-Term Investments | Municipal Bonds | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Market Value | 0 | 0 |
Long-Term Investments | Municipal Bonds | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Market Value | 21,283,707 | 18,025,432 |
Long-Term Investments | Municipal Bonds | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Market Value | $ 0 | $ 0 |
Investments (Schedule of Amorti
Investments (Schedule of Amortized Cost, Unrealized Gains And Losses, And Market Value of Investment Securities) (Details) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Debt Securities, Available-for-sale [Line Items] | ||
Cost | $ 301,641,575 | $ 303,467,531 |
Unrealized Gains | 1,169,438 | 440,807 |
Unrealized Losses | (69,283) | (366,257) |
Market Value | 302,741,730 | 303,542,081 |
Short-Term Investments | Certificates of Deposit | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost | 150,299,384 | 150,299,384 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Market Value | 150,299,384 | 150,299,384 |
Short-Term Investments | Government Securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost | 21,101,631 | 9,186,586 |
Unrealized Gains | 9,901 | 0 |
Unrealized Losses | (1,664) | (10,359) |
Market Value | 21,109,868 | 9,176,227 |
Short-Term Investments | Corporate Bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost | 5,979,056 | 6,981,305 |
Unrealized Gains | 4,095 | 0 |
Unrealized Losses | (463) | (13,605) |
Market Value | 5,982,688 | 6,967,700 |
Short-Term Investments | Other | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost | 2,921,282 | 2,219,688 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Market Value | 2,921,282 | 2,219,688 |
Long-Term Investments | Government Securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost | 34,316,447 | 56,280,552 |
Unrealized Gains | 218,059 | 205,553 |
Unrealized Losses | 0 | (2,385) |
Market Value | 34,534,506 | 56,483,720 |
Long-Term Investments | Corporate Bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost | 66,172,642 | 60,659,498 |
Unrealized Gains | 504,809 | 50,340 |
Unrealized Losses | (67,156) | (339,908) |
Market Value | 66,610,295 | 60,369,930 |
Long-Term Investments | Municipal Bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost | 20,851,133 | 17,840,518 |
Unrealized Gains | 432,574 | 184,914 |
Unrealized Losses | 0 | 0 |
Market Value | $ 21,283,707 | $ 18,025,432 |
Investments (Schedule of Unreal
Investments (Schedule of Unrealized Loss on Investments) (Details) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Investments [Abstract] | ||
Aggregate Unrealized Losses, Less than one year | $ 69,283 | $ 365,824 |
Aggregate Fair Value, Less than one year | 20,786,455 | 68,722,980 |
Aggregate Unrealized Losses, Greater than one year | 0 | 433 |
Aggregate Fair Value, Greater than one year | 0 | 3,000,000 |
Aggregate Unrealized Losses, Total | 69,283 | 366,257 |
Aggregate Fair Value, Total | $ 20,786,455 | $ 71,722,980 |
Investments (Investments Classi
Investments (Investments Classified by Contractual Maturity Date) (Details) - Fixed Income Securities | Mar. 31, 2019USD ($) |
Debt Securities, Available-for-sale [Line Items] | |
Due within one year | $ 177,391,940 |
Due between one and five years | 111,377,100 |
Due over five years | 11,051,408 |
Total | $ 299,820,448 |
Inventories (Schedule of Invent
Inventories (Schedule of Inventories) (Details) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 | |
Inventory Disclosure [Abstract] | |||
Raw materials | $ 143,533,414 | $ 139,058,541 | |
Work-in-process | 35,811,334 | 35,386,615 | |
Finished goods | 45,958,294 | 50,836,443 | |
Total Inventory | $ 225,303,042 | $ 225,281,599 | [1] |
[1] | The condensed consolidated balance sheet at December 31, 2018 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. |
Earnings Per Share (Schedule of
Earnings Per Share (Schedule of Earnings Per Share, Basic And Diluted) (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Earnings Per Share [Abstract] | ||
Net income | $ 104,280,411 | $ 111,248,743 |
Less: Allocated to participating securities | 1,081,933 | 833,316 |
Net Income available to common shareholders | $ 103,198,478 | $ 110,415,427 |
Basic weighted average shares outstanding | 257,822,836 | 274,759,516 |
Basic (in dollars per share) | $ 0.40 | $ 0.40 |
Reallocation of undistributed earnings | $ 3,813 | $ 6,011 |
Net Income per share - Diluted | $ 103,202,291 | $ 110,421,438 |
Additional dilutive common stock equivalents | 1,282,396 | 2,749,912 |
Diluted weighted average shares outstanding | 259,105,232 | 277,509,428 |
Diluted (in dollars per share) | $ 0.40 | $ 0.40 |
Shares related to stock plans not included in diluted average common shares outstanding because their effect would be anti-dilutive | 1,799,477 | 156,467 |
Stock-Based Compensation Plan_2
Stock-Based Compensation Plans (Narrative) (Details) | 3 Months Ended | |
Mar. 31, 2019USD ($)planshares | Mar. 31, 2018USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Compensation expense for share-based payments | $ | $ 4,786,794 | $ 3,901,316 |
Compensation cost capitalized as part of inventory | $ | $ 295,973 | 258,651 |
Employee Stock Option Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares available for grant (in shares) | 24,000,000 | |
Unrecognized compensation cost | $ | $ 7,650,472 | |
Employee Stock Option Plan | Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Option vesting period | 1 year | |
Option expiration period | 5 years | |
Employee Stock Option Plan | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Option vesting period | 5 years | |
Option expiration period | 10 years | |
Non Employee Director Stock Option Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Option vesting period | 6 months | |
Option expiration period | 10 years | |
Unrecognized compensation cost | $ | $ 4,302 | |
Number of shares authorized (in shares) | 1,000,000 | |
Granted (in shares) | 483,940 | |
Employee Stock Purchase Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares approved (in shares) | 2,000,000 | |
ESPP discount rate | 85.00% | |
ESPP discount rate recognized as compensation expense | 15.00% | |
Shares granted (in shares) | 1,026,404 | |
Restricted Stock Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares authorized (in shares) | 9,000,000 | |
Restricted period, maximum, in years | 10 years | |
Unearned stock-based compensation | $ | $ 36,944,099 | |
Amortization expense | $ | $ 2,723,579 | $ 1,643,060 |
Omnibus Incentive Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares authorized (in shares) | 45,000,000 | |
Restricted period, maximum, in years | 3 years | |
Equity Incentive Plans | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of plans | plan | 4 | |
Stock Options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of plans | plan | 2 |
Stock-Based Compensation Plan_3
Stock-Based Compensation Plans (Weighted-Average Assumptions for the ESOP) (Details) - $ / shares | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Dividend yield | 2.03% | 2.02% |
Expected volatility | 23.56% | 23.26% |
Risk-free interest rate | 2.23% | 2.56% |
Expected term of options | 4 years 2 months 8 days | 4 years 2 months 8 days |
Weighted-avg. grant-date fair value (in dollars per share) | $ 3.69 | $ 4.18 |
Comprehensive Income (AOCI Roll
Comprehensive Income (AOCI Rollforward) (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | $ 1,861,751,660 | [1] | $ 2,049,518,261 |
Comprehensive Income | 105,605,015 | 112,911,077 | |
Ending balance | 1,857,074,747 | 1,969,977,496 | |
Accumulated Other Comprehensive Income (Loss) | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (1,600,338) | 7,193,383 | |
Ending balance | (275,734) | 2,212,989 | |
Foreign currency translation adjustments | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (1,674,887) | 645,030 | |
Other Comprehensive income (loss) before reclassifications | 298,999 | 1,626,178 | |
Comprehensive Income | 298,999 | 1,626,178 | |
Ending balance | (1,375,888) | 2,271,208 | |
Unrealized gains (losses) on available-for-sale debt securities | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | 74,549 | (16,349) | |
Other Comprehensive income (loss) before reclassifications | 1,095,581 | 548,506 | |
Amounts reclassified from accumulated other comprehensive income | (69,976) | (565,317) | |
Comprehensive Income | 1,025,605 | (16,811) | |
Ending balance | 1,100,154 | (33,160) | |
Unrealized gains (losses) on derivatives | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | 0 | (78,026) | |
Other Comprehensive income (loss) before reclassifications | 0 | 43,173 | |
Amounts reclassified from accumulated other comprehensive income | 0 | 9,794 | |
Comprehensive Income | 0 | 52,967 | |
Ending balance | $ 0 | $ (25,059) | |
[1] | The condensed consolidated balance sheet at December 31, 2018 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. |
Comprehensive Income (Reclassif
Comprehensive Income (Reclassification Out of Accumulated Other Comprehensive Income) (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Reclassification Out of Accumulated Other Comprehensive Income [Line Items] | ||
Provision for income taxes | $ (20,628,130) | $ (20,511,188) |
Amounts Reclassified from Other Comprehensive Income | ||
Reclassification Out of Accumulated Other Comprehensive Income [Line Items] | ||
Total net reclassifications for the period | 69,976 | 555,523 |
Amounts Reclassified from Other Comprehensive Income | Unrealized gains (losses) on available-for-sale debt securities | ||
Reclassification Out of Accumulated Other Comprehensive Income [Line Items] | ||
Realized gain (loss) on sale of securities and interest rate swap | 88,576 | 715,591 |
Provision for income taxes | (18,600) | (150,274) |
Total net reclassifications for the period | 69,976 | 565,317 |
Amounts Reclassified from Other Comprehensive Income | Unrealized gains (losses) on derivatives | ||
Reclassification Out of Accumulated Other Comprehensive Income [Line Items] | ||
Realized gain (loss) on sale of securities and interest rate swap | 0 | (12,398) |
Provision for income taxes | 0 | 2,604 |
Total net reclassifications for the period | $ 0 | $ (9,794) |
Debt and Financing Arrangemen_2
Debt and Financing Arrangements (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2019 | Oct. 15, 2018 | |
Debt Instrument [Line Items] | |||
Interest expense | $ 500,000 | ||
Revolving Facility | |||
Debt Instrument [Line Items] | |||
Principal amount | $ 150,000,000 | ||
Long-term debt | $ 0 | ||
Credit Agreement | |||
Debt Instrument [Line Items] | |||
Additional borrowings available | 100,000,000 | ||
Swing Loans | |||
Debt Instrument [Line Items] | |||
Additional borrowings available | 20,000,000 | ||
Letter of Credit | |||
Debt Instrument [Line Items] | |||
Additional borrowings available | $ 20,000,000 |
Equity (Details)
Equity (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 1 Months Ended | 3 Months Ended | |
Jan. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Equity [Abstract] | |||
Stock repurchased (in shares) | 4.7 | ||
Common stock issued under stock compensation plan (in shares) | 1 | ||
Net decrease in period (in shares) | 3.7 | ||
Increase in quarterly dividend rate (in dollars per share) | $ 0.005 | ||
Dividends declared (in dollars per share) | $ 0.110 | $ 0.115 | $ 0.110 |
Dividends declared | $ 29.4 |
Segment Reporting (Schedule Of
Segment Reporting (Schedule Of Automotive And Other Segment Reporting) (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Segment Reporting Information [Line Items] | ||
Revenue | $ 468,588,997 | $ 465,420,105 |
Income from operations | 121,596,331 | 128,515,333 |
Automotive Products | ||
Segment Reporting Information [Line Items] | ||
Revenue | 455,798,643 | 454,965,374 |
Income from operations | 116,952,700 | 124,962,159 |
Other | ||
Segment Reporting Information [Line Items] | ||
Revenue | 12,790,354 | 10,454,731 |
Income from operations | $ 4,643,631 | $ 3,553,174 |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | ||
Effective income tax rate | 16.50% | 15.60% |
Revenue (Details)
Revenue (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 468,588,997 | $ 465,420,105 |
Automotive Segment | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 455,798,643 | 454,965,374 |
Other Segment | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 12,790,354 | 10,454,731 |
Automotive Products | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 455,798,643 | 454,965,374 |
Automotive Mirrors & Electronics | Automotive Segment | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 408,971,666 | 404,241,628 |
HomeLink Modules | Automotive Segment | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 46,826,977 | 50,723,746 |
Fire Protection Products | Other Segment | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 5,852,232 | 5,279,658 |
Windows Products | Other Segment | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 6,938,122 | 5,175,073 |
U.S. | Automotive Products | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 141,383,064 | 140,312,987 |
U.S. | Other Products | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 12,790,354 | 10,454,731 |
Germany | Automotive Products | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 78,449,927 | 91,793,541 |
Japan | Automotive Products | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 56,333,694 | 49,832,997 |
Mexico | Automotive Products | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 44,410,388 | 23,098,810 |
Other | Automotive Products | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 135,221,570 | $ 149,927,039 |
Leases (Details)
Leases (Details) | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Lessee, Lease, Description [Line Items] | |
Weighted average remaining lease term | 2 years |
Weighted average discount rate | 3.20% |
2019 (excluding the three months ended March 31, 2019) | $ 1,154,357 |
2020 | 558,695 |
2021 | 181,979 |
2022 | 53,786 |
2023 | 13,687 |
Thereafter | 15,982 |
Total future minimum lease payments | 1,978,486 |
Less imputed interest | (29,772) |
Total | 1,948,714 |
Accrued Liabilities | 1,305,696 |
Other Non-Current Liabilities | $ 643,018 |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Remaining lease terms | 1 year |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Remaining lease terms | 5 years |