Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2020 | Apr. 24, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2020 | |
Document Transition Report | false | |
Entity File Number | 0-10235 | |
Entity Registrant Name | GENTEX CORPORATION | |
Entity Central Index Key | 0000355811 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Incorporation, State or Country Code | MI | |
Entity Tax Identification Number | 38-2030505 | |
Entity Address, Address Line One | 600 N. Centennial | |
Entity Address, City or Town | Zeeland | |
Entity Address, State or Province | MI | |
Entity Address, Postal Zip Code | 49464 | |
City Area Code | 616 | |
Local Phone Number | 772-1800 | |
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 | |
Title of 12(b) Security | Common Stock, par value $0.06 per share | |
Trading Symbol | GNTX | |
Security Exchange Name | NASDAQ | |
Entity Common Stock, Shares Outstanding | 244,871,910 |
Unaudited Condensed Consolidate
Unaudited Condensed Consolidated Balance Sheets - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 | [1] |
CURRENT ASSETS | |||
Cash and cash equivalents | $ 278,524,928 | $ 296,321,622 | |
Short-term investments | 131,078,039 | 140,384,053 | |
Accounts receivable, net | 233,578,125 | 235,410,326 | |
Inventories | 251,006,414 | 248,941,855 | |
Prepaid expenses and other | 16,539,990 | 29,319,036 | |
Total current assets | 910,727,496 | 950,376,892 | |
PLANT AND EQUIPMENT—NET | 493,114,501 | 498,316,100 | |
OTHER ASSETS | |||
Goodwill | 307,365,845 | 307,365,845 | |
Long-term investments | 177,794,760 | 139,909,323 | |
Intangible assets, net | 245,550,000 | 250,375,000 | |
Patents and other assets, net | 23,550,490 | 22,460,033 | |
Total other assets | 754,261,095 | 720,110,201 | |
Total assets | 2,158,103,092 | 2,168,803,193 | |
CURRENT LIABILITIES | |||
Accounts payable | 100,099,191 | 97,553,917 | |
Current portion of long-term debt | 75,000,000 | 0 | |
Accrued liabilities | 88,858,713 | 74,292,883 | |
Total current liabilities | 263,957,904 | 171,846,800 | |
OTHER NON-CURRENT LIABILITIES | 9,091,509 | 7,414,424 | |
DEFERRED INCOME TAXES | 50,448,046 | 51,454,149 | |
Total liabilities | 323,497,459 | 230,715,373 | |
SHAREHOLDERS’ INVESTMENT | |||
Common stock | 14,691,939 | 15,076,651 | |
Additional paid-in capital | 801,388,454 | 807,928,139 | |
Retained earnings | 1,018,310,446 | 1,116,372,133 | |
Accumulated other comprehensive income (loss) | 214,794 | (1,289,103) | |
Total shareholders’ investment | 1,834,605,633 | 1,938,087,820 | |
Total liabilities and shareholders’ investment | $ 2,158,103,092 | $ 2,168,803,193 | |
[1] | The condensed consolidated balance sheet at December 31, 2019 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, 2020 | Mar. 31, 2019 | ||
Income Statement [Abstract] | |||
NET SALES | $ 453,761,726 | $ 468,588,997 | |
COST OF GOODS SOLD | 297,174,245 | 298,944,494 | |
Gross profit | 156,587,481 | 169,644,503 | |
OPERATING EXPENSES: | |||
Engineering, research and development | 29,615,422 | 28,089,181 | |
Selling, general & administrative | 21,944,892 | 19,958,991 | |
Total operating expenses | 51,560,314 | 48,048,172 | |
Income from operations | 105,027,167 | 121,596,331 | |
OTHER INCOME (LOSS) | |||
Investment income | 2,446,649 | 3,262,741 | |
Other income (loss), net | (199,167) | 49,469 | |
Total other income | 2,247,482 | 3,312,210 | |
INCOME BEFORE PROVISION FOR INCOME TAXES | 107,274,649 | 124,908,541 | |
PROVISION FOR INCOME TAXES | 17,768,848 | 20,628,130 | |
NET INCOME | $ 89,505,801 | $ 104,280,411 | |
EARNINGS PER SHARE: | |||
Basic (in dollars per share) | [1] | $ 0.36 | $ 0.40 |
Diluted (in dollars per share) | [1] | 0.36 | 0.40 |
Cash Dividends Declared per Share (in dollars per share) | $ 0.12 | $ 0.115 | |
[1] | (1) Earnings Per Share has been adjusted to exclude the portion of net income allocated to participating securities as a result of share-based payment awards. |
Unaudited Condensed Consolida_3
Unaudited Condensed Consolidated Statements of Comprehensive Income - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | ||
Net Income | $ 89,505,801 | $ 104,280,411 |
Other comprehensive income before tax: | ||
Foreign currency translation adjustments | (692,090) | 298,999 |
Unrealized gains on debt securities, net | 2,779,730 | 1,298,236 |
Other comprehensive income, before tax | 2,087,640 | 1,597,235 |
Income tax impact related to components of other comprehensive income | 583,743 | 272,631 |
Other comprehensive income, net of tax | 1,503,897 | 1,324,604 |
Net current-period change | $ 91,009,698 | $ 105,605,015 |
Unaudited Condensed Consolida_4
Unaudited Condensed Consolidated Statements of Shareholders' Investment - USD ($) | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Balance at beginning of period | $ 1,938,087,820 | [1] | $ 1,861,751,660 |
Issuance of common stock from stock plan transactions | $ 7,355,488 | 10,514,554 | |
Repurchases of common stock (in shares) | (7,000,000) | ||
Repurchases of common stock | $ (178,819,584) | (96,267,228) | |
Stock-based compensation expense related to stock options, employee stock purchases and restricted stock | 6,356,070 | 4,862,947 | |
Dividends declared | (29,383,859) | (29,392,200) | |
Net Income | 89,505,801 | 104,280,411 | |
Other comprehensive loss | 1,503,897 | 1,324,604 | |
Balance at end of period | $ 1,834,605,633 | $ 1,857,074,748 | |
Common Stock | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning balance (in shares) | 251,277,515 | 259,328,613 | |
Balance at beginning of period | $ 15,076,651 | $ 15,559,717 | |
Issuance of common stock from stock plan transactions (in shares) | 607,175 | 980,670 | |
Issuance of common stock from stock plan transactions | $ 36,431 | $ 58,840 | |
Repurchases of common stock (in shares) | (7,019,032) | (4,724,938) | |
Repurchases of common stock | $ (421,143) | $ (283,496) | |
Ending balance (in shares) | 244,865,658 | 255,584,345 | |
Balance at end of period | $ 14,691,939 | $ 15,335,061 | |
Additional Paid-In Capital | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Balance at beginning of period | 807,928,139 | 745,324,144 | |
Issuance of common stock from stock plan transactions | 7,319,057 | 10,455,714 | |
Repurchases of common stock | (20,214,812) | (12,001,344) | |
Stock-based compensation expense related to stock options, employee stock purchases and restricted stock | 6,356,070 | 4,862,947 | |
Balance at end of period | 801,388,454 | 748,641,461 | |
Retained Earnings | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Balance at beginning of period | 1,116,372,133 | 1,102,468,137 | |
Repurchases of common stock | (158,183,629) | (83,982,388) | |
Dividends declared | (29,383,859) | (29,392,200) | |
Net Income | 89,505,801 | 104,280,411 | |
Balance at end of period | 1,018,310,446 | 1,093,373,960 | |
Accumulated Other Comprehensive Income (Loss) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Balance at beginning of period | (1,289,103) | (1,600,338) | |
Other comprehensive loss | 1,503,897 | 1,324,604 | |
Balance at end of period | $ 214,794 | $ (275,734) | |
[1] | The condensed consolidated balance sheet at December 31, 2019 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 | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Stockholders' Equity [Abstract] | ||
Dividends declared (in dollars per share) | $ 0.12 | $ 0.115 |
Unaudited Condensed Consolida_6
Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net Income | $ 89,505,801 | $ 104,280,411 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 26,295,146 | 28,098,804 |
(Gain) on disposal of assets | (151,910) | (43,338) |
Loss on disposal of assets | 54,279 | 122,296 |
(Gain) on sale of investments | (42,461) | (88,576) |
Loss on sale of investments | 5,487 | 0 |
Change in deferred income taxes | (1,589,855) | (1,233,853) |
Stock-based compensation expense related to employee stock options, employee stock purchases and restricted stock | 6,356,070 | 4,862,947 |
Change in operating assets and liabilities: | ||
Accounts receivable, net | 1,832,201 | (30,728,497) |
Inventories | (2,064,558) | (21,443) |
Prepaid expenses and other | 12,779,046 | 10,847,705 |
Accounts payable | 2,545,274 | (2,692,820) |
Accrued liabilities, excluding dividends declared and short-term debt | 15,755,950 | 20,436,582 |
Net cash provided by operating activities | 151,280,470 | 133,840,218 |
Activity in available-for-sale securities: | ||
Sales proceeds | 3,124,008 | 17,139,689 |
Maturities and calls | 19,720,000 | 3,000,000 |
Purchases | (48,606,718) | (18,475,158) |
Plant and equipment additions | (15,574,443) | (16,844,301) |
Proceeds from sale of plant and equipment | 165,533 | 117,455 |
Decrease in other assets | (2,544,554) | 164,215 |
Net cash (used for) investing activities | (43,716,174) | (14,898,100) |
CASH FLOWS (USED FOR) FINANCING ACTIVITIES: | ||
Proceeds from borrowings on Credit Agreement | 75,000,000 | 0 |
Issuance of common stock from stock plan transactions | 7,355,488 | 10,514,554 |
Cash dividends paid | (28,896,894) | (28,526,146) |
Repurchases of common stock | (178,819,584) | (96,267,229) |
Net cash (used for) financing activities | (125,360,990) | (114,278,821) |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (17,796,694) | 4,663,297 |
CASH AND CASH EQUIVALENTS, beginning of period | 296,321,622 | 217,025,278 |
CASH AND CASH EQUIVALENTS, end of period | $ 278,524,928 | $ 221,688,575 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2020 | |
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 2019 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, 2020, 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, 2020 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Adoption of New Accounting Pronouncements | Adoption of New Accounting Pronouncements Effective January 1, 2020, the Company adopted Accounting Standards Update ("ASU") 2016-13, Financial Instruments - Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instrument s. This guidance must be adopted using a modified retrospective transition method through a cumulative-effect adjustment to retained earnings in the period of adoption. Based on the insignificant impact of this ASU on the Company's financial statements, a cumulative-effect adjustment to retained earnings was not deemed necessary. 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. It also modifies the impairment model for available-for-sale debt securities and provides a simplified accounting model for purchased financial assets with credit deterioration since their origination. The adoption of this standard did not have a material impact on the Company's consolidated balance sheet, consolidated income statement, or consolidated statement of cash flows. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 3 Months Ended |
Mar. 31, 2020 | |
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 both March 31, 2020 and December 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. The impact of COVID-19 was considered in the most recently completed quarter, but did not indicate 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, 2020: Other Intangible Assets Gross Accumulated Amortization Net Assumed Useful Life Gentex Patents $ 37,496,822 $ (23,003,239) $ 14,493,583 Various Other Intangible Assets HomeLink ® Trade Names and Trademarks $ 52,000,000 $ — $ 52,000,000 Indefinite HomeLink ® Technology 180,000,000 (97,500,000) 82,500,000 12 years Existing Customer Platforms 43,000,000 (27,950,000) 15,050,000 10 years Exclusive Licensing Agreement 96,000,000 — 96,000,000 Indefinite Total Other Intangible Assets $ 371,000,000 $ (125,450,000) $ 245,550,000 Total Patents & Other Intangible Assets $ 408,496,822 $ (148,453,239) $ 260,043,583 As of December 31, 2019: Other Intangible Assets Gross Accumulated Amortization Net Assumed Useful Life Gentex Patents $ 37,328,963 $ (22,491,010) $ 14,837,953 Various Other Intangible Assets HomeLink ® Trade Names and Trademarks $ 52,000,000 $ — $ 52,000,000 Indefinite HomeLink ® Technology 180,000,000 (93,750,000) 86,250,000 12 years Existing Customer Platforms 43,000,000 (26,875,000) 16,125,000 10 years Exclusive Licensing Agreement 96,000,000 — 96,000,000 Indefinite Total Other Intangible Assets $ 371,000,000 $ (120,625,000) $ 250,375,000 Total Patents & Other Intangible Assets $ 408,328,963 $ (143,116,010) $ 265,212,953 Amortization expense on patents and intangible assets was approximately $5.6 million during the three months ended March 31, 2020, compared to approximately $5.6 million for the same quarter ended March 31, 2019. |
Investments
Investments | 3 Months Ended |
Mar. 31, 2020 | |
Investments [Abstract] | |
Investments | Investments The Company follows the provisions of Accounting Standards Codification ("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 with respect to a company’s use of fair-value measurements, including the effect of such measurements on earnings. The cost of securities sold is based on the specific identification method. The Company determines the fair value of its government securities, asset-backed 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 are classified as available for sale and are considered as Level 1 assets. These investments are carried at cost, which approximates fair value. The Company also periodically makes technology investments in certain non-consolidated third-parties. These equity investments are accounted for in accordance with ASC 321, Investments - Equity Securities . Equity investments that do not have readily determinable fair values, and where the Company has not identified any observable events that would cause adjustment of the valuation to date, such equity investments are held at cost. These technology investments totaled approximately $9.0 million as of March 31, 2020 and December 31, 2019. 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, 2020 and December 31, 2019: As of March 31, 2020: 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, 2020 (Level 1) (Level 2) (Level 3) Cash & Cash Equivalents $ 278,524,928 $ 278,524,928 $ — $ — Short-Term Investments: Certificate of Deposit 50,099,795 50,099,795 — — Corporate Bonds 29,122,402 — 29,122,402 — Government Securities 46,903,815 — 46,903,815 — Municipal Bonds 2,084,121 — 2,084,121 — Other 2,867,906 2,867,906 — — Long-Term Investments: Asset Backed Securities 43,628,702 — 43,628,702 — Certificate of Deposit 5,086,858 5,086,858 — — Corporate Bonds 20,397,525 — 20,397,525 — Government Securities 7,308,584 — 7,308,584 — Municipal Bonds 92,358,822 — 92,358,822 — Total $ 578,383,458 $ 336,579,487 $ 241,803,971 $ — As of December 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 December 31, 2019 (Level 1) (Level 2) (Level 3) Cash & Cash Equivalents $ 296,321,622 $ 296,321,622 $ — $ — Short-Term Investments: Certificate of Deposit 50,099,795 50,099,795 — — Corporate Bonds 29,219,685 — 29,219,685 — Government Securities 58,432,823 — 58,432,823 — Other 2,631,750 2,631,750 — — Long-Term Investments: Asset-backed Securities 25,791,029 — 25,791,029 — Certificate of Deposit 3,557,798 3,557,798 — Corporate Bonds 22,815,998 — 22,815,998 — Governmental Securities 6,088,190 — 6,088,190 — Municipal Bonds 72,638,690 — 72,638,690 — Total $ 567,597,380 $ 352,610,965 $ 214,986,415 $ — The amortized cost, unrealized gains and losses, and market value of investment securities are shown as of March 31, 2020 and December 31, 2019: As of March 31, 2020: Unrealized Cost Gains Losses Market Value Short-Term Investments: Certificate of Deposit $ 50,099,795 $ — $ — $ 50,099,795 Corporate Bonds 29,047,745 84,838 (10,181) 29,122,402 Government Securities 46,564,204 339,611 — 46,903,815 Municipal Bonds 2,079,998 4,123 — 2,084,121 Other 2,867,906 — — 2,867,906 Long-Term Investments: Asset Backed Securities 43,046,638 988,808 (406,744) 43,628,702 Certificate of Deposit 5,007,454 87,617 (8,213) 5,086,858 Corporate Bonds 20,271,904 330,691 (205,070) 20,397,525 Government Securities 7,150,365 158,219 — 7,308,584 Municipal Bonds 89,556,097 2,905,405 (102,680) 92,358,822 Total $ 295,692,106 $ 4,899,312 $ (732,888) $ 299,858,530 As of December 31, 2019: Unrealized Cost Gains Losses Market Value Short-Term Investments: Certificate of Deposit $ 50,099,795 $ — $ — $ 50,099,795 Corporate Bonds 29,025,624 194,061 — 29,219,685 Government Securities 58,343,911 99,917 (11,005) 58,432,823 Other 2,631,750 — — 2,631,750 Long-Term Investments: Asset-backed Securities 25,971,156 — (180,127) 25,791,029 Certificate of Deposit 3,500,000 58,808 (1,010) 3,557,798 Corporate Bonds 22,306,130 509,868 — 22,815,998 Government Securities 6,012,705 75,485 — 6,088,190 Municipal Bonds 71,997,996 1,036,116 (395,422) 72,638,690 Total $ 269,889,067 $ 1,974,255 $ (587,564) $ 271,275,758 Unrealized losses on investments as of March 31, 2020, are as follows: Aggregate Unrealized Losses Aggregate Fair Value Loss duration of less than one year $ 732,888 $ 36,159,819 Loss duration of greater than one year — — Total $ 732,888 $ 36,159,819 Unrealized losses on investments as of December 31, 2019, are as follows: Aggregate Unrealized Losses Aggregate Fair Value Loss duration of less than one year $ 587,564 $ 90,721,081 Loss duration of greater than one year — — Total $ 587,564 $ 90,721,081 Effective January 1, 2020, the Company adopted Accounting Standards Update ("ASU") 2016-13, Financial Instruments - Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instrument s. The guidance modifies the impairment model for available-for-sale debt securities and provides a simplified accounting model for purchased financial assets with credit deterioration since their origination. The Company utilized the guidance provided by ASC 326 to determine whether any of the available-for-sale debt securities held by the Company were impaired. No investments were considered to be impaired 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, 2020 have contractual maturities as follows: Due within one year $ 128,210,132 Due between one and five years 52,232,126 Due over five years 116,548,364 $ 296,990,622 |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories consisted of the following at the respective balance sheet dates: March 31, 2020 December 31, 2019 Raw materials $ 170,585,611 $ 164,974,553 Work-in-process 33,033,321 33,069,255 Finished goods 47,387,482 50,898,047 Total Inventory $ 251,006,414 $ 248,941,855 |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2020 | |
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 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, 2020 and March 31, 2019, respectively: Three Months Ended March 31, 2020 2019 Basic Earnings Per Share Net Income $ 89,505,801 $ 104,280,411 Less: Allocated to participating securities 1,221,016 1,081,933 Net Income available to common shareholders $ 88,284,785 $ 103,198,478 Basic weighted average shares outstanding 246,309,869 257,822,836 Net Income per share - Basic $ 0.36 $ 0.40 Diluted Earnings Per Share Allocation of Net Income used in basic computation $ 88,284,785 $ 103,198,478 Reallocation of undistributed earnings 4,184 3,813 Net Income available to common shareholders - Diluted $ 88,288,969 $ 103,202,291 Number of shares used in basic computation 246,309,869 257,822,836 Additional weighted average dilutive common stock equivalents 1,306,574 1,282,396 Diluted weighted average shares outstanding 247,616,443 259,105,232 Net income per share - Diluted $ 0.36 $ 0.40 Shares related to stock plans not included in diluted average common shares outstanding because their effect would be anti-dilutive 177,966 1,799,477 |
Stock-Based Compensation Plans
Stock-Based Compensation Plans | 3 Months Ended |
Mar. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation Plans | Stock-Based Compensation Plans As of March 31, 2020, the Company had two equity incentive plans, which include the Gentex Corporation 2019 Omnibus Incentive Plan ("2019 Omnibus Plan"), and an employee stock purchase plan. Those plans and any prior material amendments thereto have previously been approved by shareholders. The 2019 Omnibus Plan provides for the potential awards to: i) employees; and ii) non-employee directors of the Company or its subsidiaries, which potential awards may be stock options, both incentive stock options and non-qualified stock options, appreciation rights, restricted stock, restricted stock units, performance share awards and performance units, and other awards that are stock-based, cash-based or a combination of both. The 2019 Omnibus Plan replaced the Company's Employee Stock Option Plan, Second Restricted Stock Plan, and Amended and Restated Non-Employee Director Stock Option Plan (the "Prior Plans"), which were also approved by shareholders. Any existing awards previously granted under the Prior Plans, including those made to non-officers in the first quarter of 2019, remain outstanding in accordance with their terms and are governed by the Prior Plans as applicable. 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, 2019, for additional information related to the Prior Plans. The Company recognized compensation expense for share-based payments of $6,356,070 for the three months ended March 31, 2020, and $4,786,794 for the three months ended March 31, 2019. A portion of the compensation cost for share based payment awards is capitalized as part of inventory. 2019 Omnibus Incentive Plan The 2019 Omnibus Incentive Plan covers 45,000,000 shares of common stock. The purpose of the 2019 Omnibus Incentive Plan is to attract and retain employees, officers, and directors of the Company and its subsidiaries and to motivate and provide such persons incentives and rewards for performance. As of March 31, 2020, 6,748,255 shares (net of shares from canceled/expired options) have been issued under the 2019 Omnibus Plan, which includes stock options (at a set conversion rate), restricted shares, and performance share awards. Employee Stock Options Under the 2019 Omnibus Plan and 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 five The fair value of each option grant 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, 2020 2019 Dividend Yield (1) 2.00 % 2.03 % Expected volatility (2) 26.52 % 23.56 % Risk-free interest rate (3) 0.37 % 2.23 % Expected term of options (years) (4) 4.16 4.19 Weighted-avg. grant date fair value $3.82 $3.69 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. Restricted Shares Restricted shares awarded under the 2019 Omnibus Plan and the Second 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 such plans. As of March 31, 2020, the Company had unearned stock-based compensation of $46,788,371 associated with the restricted stock grants issued under the 2019 Omnibus Plan and the prior plan. 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, 2020 was $4,362,318, and for the three months ended March 31, 2019 was $2,723,579. Performance Shares Performance shares awarded under the 2019 Omnibus Plan are considered performance condition awards as attainment is based on the Company's performance relative to pre-established metrics. The fair value of such performance share awards was determined using the Company's closing stock price on the date of grant. The expected attainment of the metrics for these awards is then analyzed each reporting period, and the related expense is adjusted based on expected attainment, if the then expected attainment differs from previous expectations. The cumulative effect on current and prior periods of a change in expected attainment is recognized in the period of change. As of March 31, 2020, the Company had unearned stock-based compensation of $5,486,425 associated with these performance share grants. The unearned stock-based compensation related to these grants is being amortized to compensation expense over the applicable performance periods. Amortization expense from performance share grants in the three months ended March 31, 2020 was $393,777. No amortization expense for performance share grants was incurred in 2018, as no such awards were issued and outstanding. 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, Compensation - Stock Compensation , the 15% discounted value is recognized as compensation expense. As of March 31, 2020, the Company has issued 1,232,705 shares under this plan. |
Comprehensive Income
Comprehensive Income | 3 Months Ended |
Mar. 31, 2020 | |
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, 2020 2019 Foreign currency translation adjustments: Balance at beginning of period $ (2,384,589) $ (1,674,887) Other Comprehensive (loss) income before reclassifications (692,090) 298,999 Net current-period change (692,090) 298,999 Balance at end of period (3,076,679) (1,375,888) Unrealized gains on available-for-sale debt securities: Balance at beginning of period 1,095,486 74,549 Other Comprehensive income before reclassifications 2,225,196 1,095,581 Amounts reclassified from accumulated other comprehensive income (29,209) (69,976) Net current-period change 2,195,987 1,025,605 Balance at end of period 3,291,473 1,100,154 Accumulated other comprehensive gain (loss), end of period $ 214,794 $ (275,734) The following table presents details of reclassifications out of accumulated other comprehensive income for the three months ended March 31, 2020 and 2019. Details about Accumulated Other Comprehensive Income Components Amounts Reclassified from Other Comprehensive Income Affected Line item in the Statement of Consolidated Income Three Months Ended March 31, 2020 2019 Unrealized gains on available-for-sale debt securities Realized gain on sale $ 36,974 $ 88,576 Other income (loss), net Provision for income taxes (7,765) (18,600) Provision for income taxes Total net reclassifications for the period $ 29,209 $ 69,976 Net of tax |
Debt and Financing Arrangements
Debt and Financing Arrangements | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Debt and Financing Arrangements | Debt and Financing Arrangements On October 15, 2018, the Company entered into a Credit Agreement (“Credit Agreement”) with PNC as the administrative agent and sole lender. Pursuant to this 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, 2020, there was an outstanding balance of $75 million on the Revolver. In the next twelve months, the Company has the ability and intent to repay the full outstanding balance using cash; therefore, this balance has been classified as a current liability. The Revolver expires on October 15, 2023. As of March 31, 2020, the borrowing rate on its Revolver is derived from the one month LIBOR, and based on the Company's leverage ratio as of March 31, 2020, the interest rate on its borrowings is equal to 1.81%. During the three months ended March 31, 2020, interest expense was less than $0.1 million, which was netted with the "Other income (loss), net" section of the Unaudited Consolidated Statements of Income . Based on loan balances as of March 31, 2020, a one percent increase in the Company's borrowing rate would increase net interest expense paid by the Company on its borrowings by approximately $0.8 million dollars on an annual basis. The Credit Agreement contains customary representations and warranties and certain covenants that place certain limitations on the Company. As of March 31, 2020, the Company is in compliance with its covenants under the Credit Agreement. |
Equity
Equity | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Equity | Equity The decrease in common stock during the three months ended March 31, 2020, was primarily due to the repurchases of 7.0 million shares, partially offset by the issuance of 0.6 million shares of the Company’s common stock under the Company’s stock-based compensation plans. The total net decrease was 6.4 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 2020. As such, the Company recorded a cash dividend of $0.120 per share during the first quarter of 2020 as compared to a cash dividend of $0.115 per share during the first quarter of 2019. The first quarter 2020 dividend of $29.4 million was declared on March 9, 2020, and was paid on April 22, 2020. |
Contingencies
Contingencies | 3 Months Ended |
Mar. 31, 2020 | |
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, regulatory, 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, 2020 | |
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, 2020 2019 Revenue: Automotive Products $ 439,855,587 $ 455,798,643 Other 13,906,139 12,790,354 Total $ 453,761,726 $ 468,588,997 Income from operations: Automotive Products $ 100,775,544 $ 116,952,700 Other 4,251,623 4,643,631 Total $ 105,027,167 $ 121,596,331 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income TaxesThe effective tax rate was 16.6% in the three months ended March 31, 2020 compared to 16.5% for the same period in 2019. 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 and research and development tax credits. |
Revenue
Revenue | 3 Months Ended |
Mar. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue The following table shows the Company’s Automotive revenue and Other Products revenue disaggregated by geographical location for Automotive Products for the three month periods ended March 31, 2020 and March 31, 2019: Revenue Three Months Ended March 31, 2020 Three Months Ended March 31, 2019 Automotive Products U.S. $ 135,581,918 $ 141,383,064 Germany 72,785,724 78,449,927 Japan 51,136,933 56,333,694 Mexico 45,950,481 44,410,388 Other 134,400,531 135,221,570 Total Automotive Products $ 439,855,587 $ 455,798,643 Other Products (U.S.) 13,906,139 12,790,354 Total Revenue $ 453,761,726 $ 468,588,997 Revenue by geographic area may fluctuate based on many factors, including: exposure to local economic, political and labor conditions; a pandemic; 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 revenue and Other revenue by major source for the three month periods ended March 31, 2020 and March 31, 2019: Revenue Three Months Ended March 31, 2020 Three Months Ended March 31, 2019 Automotive Segment Automotive Mirrors & Electronics $ 401,085,314 $ 408,971,666 HomeLink Modules* 38,770,273 46,826,977 Total Automotive Products $ 439,855,587 $ 455,798,643 Other Segment Fire Protection Products 6,168,751 5,852,232 Windows Products 7,737,388 6,938,122 Total Other $ 13,906,139 $ 12,790,354 *Excludes HomeLink revenue where HomeLink electronics are integrated into interior auto-dimming mirrors. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Leases | Leases The Company has operating leases for corporate offices, warehouses, vehicles, and other equipment, which are included within "Plant and Equipment - Net" section of the Condensed Consolidated Balance Sheets. The leases have remaining lease terms of 1 year to 6 years. The weighted average remaining lease term for operating leases as of March 31, 2020 was 2 years, with a weighted average discount rate of 1.9%. Future minimum lease payments for operating leases as of March 31, 2020 were as follows: Year ending December 31, 2020 (excluding the three months ended March 31, 2020) $ 712,710 2021 615,756 2022 401,144 2023 159,027 2024 12,438 Thereafter 2,668 Total future minimum lease payments 1,903,743 Less imputed interest (91,048) Total $ 1,812,695 Reported as of March 31, 2020 Accrued Liabilities $ 844,330 Other Non-Current Liabilities 968,365 Total $ 1,812,695 |
Subsequent Event
Subsequent Event | 3 Months Ended |
Mar. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent Event On April 8, 2020, the Company acquired Vaporsens, Inc (“Vaporsens”) for $10.5 million, which was in addition to the previous $3.0 million equity investment by the Company in Vaporsens. The Company funded the acquisition with $7.1 million in cash payments, with the remaining $3.4 million of consideration paid with restricted common stock of the Company. Vaporsens specializes in nanofiber chemical sensing research and development, which the Company anticipates using to complement and expand its product offerings. Vaporsens is now a 100% owned subsidiary of the Company, and will be classified within the “Other” segment. The Company is in the process of gathering relevant information needed to complete the initial accounting of the acquisition. As a result, the initial accounting for the acquisition is incomplete, and therefore the Company is unable to disclose the information required by ASC 805, Business Combinations . Such information will be included in the Company’s quarterly Report on Form 10-Q for the second quarter of 2020. |
Adoption of New Accounting Pr_2
Adoption of New Accounting Pronouncements (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Adoption of New Accounting Pronouncements | Effective January 1, 2020, the Company adopted Accounting Standards Update ("ASU") 2016-13, Financial Instruments - Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instrument s. This guidance must be adopted using a modified retrospective transition method through a cumulative-effect adjustment to retained earnings in the period of adoption. Based on the insignificant impact of this ASU on the Company's financial statements, a cumulative-effect adjustment to retained earnings was not deemed necessary. 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. It also modifies the impairment model for available-for-sale debt securities and provides a simplified accounting model for purchased financial assets with credit deterioration since their origination. The adoption of this standard did not have a material impact on the Company's consolidated balance sheet, consolidated income statement, or consolidated statement of cash flows. |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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, 2020: Other Intangible Assets Gross Accumulated Amortization Net Assumed Useful Life Gentex Patents $ 37,496,822 $ (23,003,239) $ 14,493,583 Various Other Intangible Assets HomeLink ® Trade Names and Trademarks $ 52,000,000 $ — $ 52,000,000 Indefinite HomeLink ® Technology 180,000,000 (97,500,000) 82,500,000 12 years Existing Customer Platforms 43,000,000 (27,950,000) 15,050,000 10 years Exclusive Licensing Agreement 96,000,000 — 96,000,000 Indefinite Total Other Intangible Assets $ 371,000,000 $ (125,450,000) $ 245,550,000 Total Patents & Other Intangible Assets $ 408,496,822 $ (148,453,239) $ 260,043,583 As of December 31, 2019: Other Intangible Assets Gross Accumulated Amortization Net Assumed Useful Life Gentex Patents $ 37,328,963 $ (22,491,010) $ 14,837,953 Various Other Intangible Assets HomeLink ® Trade Names and Trademarks $ 52,000,000 $ — $ 52,000,000 Indefinite HomeLink ® Technology 180,000,000 (93,750,000) 86,250,000 12 years Existing Customer Platforms 43,000,000 (26,875,000) 16,125,000 10 years Exclusive Licensing Agreement 96,000,000 — 96,000,000 Indefinite Total Other Intangible Assets $ 371,000,000 $ (120,625,000) $ 250,375,000 Total Patents & Other Intangible Assets $ 408,328,963 $ (143,116,010) $ 265,212,953 |
Investments (Tables)
Investments (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Investments [Abstract] | |
Investment Securities Stated at Fair Value | Assets or liabilities that have recurring fair value measurements are shown below as of March 31, 2020 and December 31, 2019: As of March 31, 2020: 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, 2020 (Level 1) (Level 2) (Level 3) Cash & Cash Equivalents $ 278,524,928 $ 278,524,928 $ — $ — Short-Term Investments: Certificate of Deposit 50,099,795 50,099,795 — — Corporate Bonds 29,122,402 — 29,122,402 — Government Securities 46,903,815 — 46,903,815 — Municipal Bonds 2,084,121 — 2,084,121 — Other 2,867,906 2,867,906 — — Long-Term Investments: Asset Backed Securities 43,628,702 — 43,628,702 — Certificate of Deposit 5,086,858 5,086,858 — — Corporate Bonds 20,397,525 — 20,397,525 — Government Securities 7,308,584 — 7,308,584 — Municipal Bonds 92,358,822 — 92,358,822 — Total $ 578,383,458 $ 336,579,487 $ 241,803,971 $ — As of December 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 December 31, 2019 (Level 1) (Level 2) (Level 3) Cash & Cash Equivalents $ 296,321,622 $ 296,321,622 $ — $ — Short-Term Investments: Certificate of Deposit 50,099,795 50,099,795 — — Corporate Bonds 29,219,685 — 29,219,685 — Government Securities 58,432,823 — 58,432,823 — Other 2,631,750 2,631,750 — — Long-Term Investments: Asset-backed Securities 25,791,029 — 25,791,029 — Certificate of Deposit 3,557,798 3,557,798 — Corporate Bonds 22,815,998 — 22,815,998 — Governmental Securities 6,088,190 — 6,088,190 — Municipal Bonds 72,638,690 — 72,638,690 — Total $ 567,597,380 $ 352,610,965 $ 214,986,415 $ — |
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, 2020 and December 31, 2019: As of March 31, 2020: Unrealized Cost Gains Losses Market Value Short-Term Investments: Certificate of Deposit $ 50,099,795 $ — $ — $ 50,099,795 Corporate Bonds 29,047,745 84,838 (10,181) 29,122,402 Government Securities 46,564,204 339,611 — 46,903,815 Municipal Bonds 2,079,998 4,123 — 2,084,121 Other 2,867,906 — — 2,867,906 Long-Term Investments: Asset Backed Securities 43,046,638 988,808 (406,744) 43,628,702 Certificate of Deposit 5,007,454 87,617 (8,213) 5,086,858 Corporate Bonds 20,271,904 330,691 (205,070) 20,397,525 Government Securities 7,150,365 158,219 — 7,308,584 Municipal Bonds 89,556,097 2,905,405 (102,680) 92,358,822 Total $ 295,692,106 $ 4,899,312 $ (732,888) $ 299,858,530 As of December 31, 2019: Unrealized Cost Gains Losses Market Value Short-Term Investments: Certificate of Deposit $ 50,099,795 $ — $ — $ 50,099,795 Corporate Bonds 29,025,624 194,061 — 29,219,685 Government Securities 58,343,911 99,917 (11,005) 58,432,823 Other 2,631,750 — — 2,631,750 Long-Term Investments: Asset-backed Securities 25,971,156 — (180,127) 25,791,029 Certificate of Deposit 3,500,000 58,808 (1,010) 3,557,798 Corporate Bonds 22,306,130 509,868 — 22,815,998 Government Securities 6,012,705 75,485 — 6,088,190 Municipal Bonds 71,997,996 1,036,116 (395,422) 72,638,690 Total $ 269,889,067 $ 1,974,255 $ (587,564) $ 271,275,758 |
Schedule of Unrealized Loss on Investments | Unrealized losses on investments as of March 31, 2020, are as follows: Aggregate Unrealized Losses Aggregate Fair Value Loss duration of less than one year $ 732,888 $ 36,159,819 Loss duration of greater than one year — — Total $ 732,888 $ 36,159,819 Unrealized losses on investments as of December 31, 2019, are as follows: Aggregate Unrealized Losses Aggregate Fair Value Loss duration of less than one year $ 587,564 $ 90,721,081 Loss duration of greater than one year — — Total $ 587,564 $ 90,721,081 |
Investments Classified by Contractual Maturity Date | Fixed income securities as of March 31, 2020 have contractual maturities as follows: Due within one year $ 128,210,132 Due between one and five years 52,232,126 Due over five years 116,548,364 $ 296,990,622 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories consisted of the following at the respective balance sheet dates: March 31, 2020 December 31, 2019 Raw materials $ 170,585,611 $ 164,974,553 Work-in-process 33,033,321 33,069,255 Finished goods 47,387,482 50,898,047 Total Inventory $ 251,006,414 $ 248,941,855 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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, 2020 and March 31, 2019, respectively: Three Months Ended March 31, 2020 2019 Basic Earnings Per Share Net Income $ 89,505,801 $ 104,280,411 Less: Allocated to participating securities 1,221,016 1,081,933 Net Income available to common shareholders $ 88,284,785 $ 103,198,478 Basic weighted average shares outstanding 246,309,869 257,822,836 Net Income per share - Basic $ 0.36 $ 0.40 Diluted Earnings Per Share Allocation of Net Income used in basic computation $ 88,284,785 $ 103,198,478 Reallocation of undistributed earnings 4,184 3,813 Net Income available to common shareholders - Diluted $ 88,288,969 $ 103,202,291 Number of shares used in basic computation 246,309,869 257,822,836 Additional weighted average dilutive common stock equivalents 1,306,574 1,282,396 Diluted weighted average shares outstanding 247,616,443 259,105,232 Net income per share - Diluted $ 0.36 $ 0.40 Shares related to stock plans not included in diluted average common shares outstanding because their effect would be anti-dilutive 177,966 1,799,477 |
Stock-Based Compensation Plans
Stock-Based Compensation Plans (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Weighted-Average Assumptions For The Employee Stock Option Plan | The fair value of each option grant 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, 2020 2019 Dividend Yield (1) 2.00 % 2.03 % Expected volatility (2) 26.52 % 23.56 % Risk-free interest rate (3) 0.37 % 2.23 % Expected term of options (years) (4) 4.16 4.19 Weighted-avg. grant date fair value $3.82 $3.69 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, 2020 | |
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, 2020 2019 Foreign currency translation adjustments: Balance at beginning of period $ (2,384,589) $ (1,674,887) Other Comprehensive (loss) income before reclassifications (692,090) 298,999 Net current-period change (692,090) 298,999 Balance at end of period (3,076,679) (1,375,888) Unrealized gains on available-for-sale debt securities: Balance at beginning of period 1,095,486 74,549 Other Comprehensive income before reclassifications 2,225,196 1,095,581 Amounts reclassified from accumulated other comprehensive income (29,209) (69,976) Net current-period change 2,195,987 1,025,605 Balance at end of period 3,291,473 1,100,154 Accumulated other comprehensive gain (loss), end of period $ 214,794 $ (275,734) |
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, 2020 and 2019. Details about Accumulated Other Comprehensive Income Components Amounts Reclassified from Other Comprehensive Income Affected Line item in the Statement of Consolidated Income Three Months Ended March 31, 2020 2019 Unrealized gains on available-for-sale debt securities Realized gain on sale $ 36,974 $ 88,576 Other income (loss), net Provision for income taxes (7,765) (18,600) Provision for income taxes Total net reclassifications for the period $ 29,209 $ 69,976 Net of tax |
Segment Reporting (Tables)
Segment Reporting (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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, 2020 2019 Revenue: Automotive Products $ 439,855,587 $ 455,798,643 Other 13,906,139 12,790,354 Total $ 453,761,726 $ 468,588,997 Income from operations: Automotive Products $ 100,775,544 $ 116,952,700 Other 4,251,623 4,643,631 Total $ 105,027,167 $ 121,596,331 |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table shows the Company’s Automotive revenue and Other Products revenue disaggregated by geographical location for Automotive Products for the three month periods ended March 31, 2020 and March 31, 2019: Revenue Three Months Ended March 31, 2020 Three Months Ended March 31, 2019 Automotive Products U.S. $ 135,581,918 $ 141,383,064 Germany 72,785,724 78,449,927 Japan 51,136,933 56,333,694 Mexico 45,950,481 44,410,388 Other 134,400,531 135,221,570 Total Automotive Products $ 439,855,587 $ 455,798,643 Other Products (U.S.) 13,906,139 12,790,354 Total Revenue $ 453,761,726 $ 468,588,997 Revenue by geographic area may fluctuate based on many factors, including: exposure to local economic, political and labor conditions; a pandemic; 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 revenue and Other revenue by major source for the three month periods ended March 31, 2020 and March 31, 2019: Revenue Three Months Ended March 31, 2020 Three Months Ended March 31, 2019 Automotive Segment Automotive Mirrors & Electronics $ 401,085,314 $ 408,971,666 HomeLink Modules* 38,770,273 46,826,977 Total Automotive Products $ 439,855,587 $ 455,798,643 Other Segment Fire Protection Products 6,168,751 5,852,232 Windows Products 7,737,388 6,938,122 Total Other $ 13,906,139 $ 12,790,354 *Excludes HomeLink revenue where HomeLink electronics are integrated into interior auto-dimming mirrors. |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Future minimum lease payments | Future minimum lease payments for operating leases as of March 31, 2020 were as follows: Year ending December 31, 2020 (excluding the three months ended March 31, 2020) $ 712,710 2021 615,756 2022 401,144 2023 159,027 2024 12,438 Thereafter 2,668 Total future minimum lease payments 1,903,743 Less imputed interest (91,048) Total $ 1,812,695 |
Lease liabilities | Reported as of March 31, 2020 Accrued Liabilities $ 844,330 Other Non-Current Liabilities 968,365 Total $ 1,812,695 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets (Narrative) (Details) - USD ($) | 3 Months Ended | ||||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | [1] | Sep. 27, 2013 | |
Finite-Lived Intangible Assets [Line Items] | |||||
Goodwill | $ 307,365,845 | $ 307,365,845 | |||
Amortization expense | 5,600,000 | $ 5,600,000 | |||
Amortization expense, 2020 | 22,000,000 | ||||
Amortization expense, 2021 | 22,000,000 | ||||
Amortization expense, 2022 | 21,000,000 | ||||
Amortization expense, 2023 | 19,000,000 | ||||
Amortization expense, 2024 | $ 16,000,000 | ||||
HomeLink® | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Goodwill | $ 307,400,000 | ||||
[1] | The condensed consolidated balance sheet at December 31, 2019 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, 2020 | Dec. 31, 2019 | ||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets, accumulated amortization | $ (125,450,000) | $ (120,625,000) | |
Intangible assets, gross | 371,000,000 | 371,000,000 | |
Intangible assets, net | 245,550,000 | 250,375,000 | [1] |
Gentex Patents | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets, gross | 37,496,822 | 37,328,963 | |
Finite-lived intangible assets, accumulated amortization | (23,003,239) | (22,491,010) | |
Finite-lived intangible assets, net | 14,493,583 | 14,837,953 | |
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 | (97,500,000) | (93,750,000) | |
Finite-lived intangible assets, net | $ 82,500,000 | $ 86,250,000 | |
Finite-lived intangible asset, useful life (in years) | 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 | (27,950,000) | (26,875,000) | |
Finite-lived intangible assets, net | $ 15,050,000 | $ 16,125,000 | |
Finite-lived intangible asset, useful life (in years) | 10 years | 10 years | |
Patents and Other Intangible Assets | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets, accumulated amortization | $ (148,453,239) | $ (143,116,010) | |
Intangible assets, gross | 408,496,822 | 408,328,963 | |
Intangible assets, net | 260,043,583 | 265,212,953 | |
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, 2019 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) | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Investments, Debt and Equity Securities [Abstract] | |
Technology investments | $ 9,000,000 |
Equity investment losses were considered to be other than temporary | $ 0 |
Investments (Schedule of Assets
Investments (Schedule of Assets or Liabilities, Recurring Fair Value Measurements) (Details) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash & Cash Equivalents | $ 278,524,928 | $ 296,321,622 |
Market Value | 299,858,530 | 271,275,758 |
Investments and Cash | 578,383,458 | 567,597,380 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash & Cash Equivalents | 278,524,928 | 296,321,622 |
Investments and Cash | 336,579,487 | 352,610,965 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash & Cash Equivalents | 0 | 0 |
Investments and Cash | 241,803,971 | 214,986,415 |
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 | 50,099,795 | 50,099,795 |
Short-Term Investments | Certificates of Deposit | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Market Value | 50,099,795 | 50,099,795 |
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 | Government Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Market Value | 46,903,815 | 58,432,823 |
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 | 46,903,815 | 58,432,823 |
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 | Corporate Bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Market Value | 29,122,402 | 29,219,685 |
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 | 29,122,402 | 29,219,685 |
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 | Other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Market Value | 2,867,906 | 2,631,750 |
Short-Term Investments | Other | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Market Value | 2,867,906 | 2,631,750 |
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 |
Short-Term Investments | Municipal Bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Market Value | 2,084,121 | |
Short-Term Investments | Municipal Bonds | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Market Value | 0 | |
Short-Term Investments | Municipal Bonds | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Market Value | 2,084,121 | |
Short-Term Investments | Municipal Bonds | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Market Value | 0 | |
Long-Term Investments | Certificates of Deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Market Value | 5,086,858 | 3,557,798 |
Long-Term Investments | Certificates of Deposit | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Market Value | 5,086,858 | 3,557,798 |
Long-Term Investments | Certificates of Deposit | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Market Value | 0 | |
Long-Term Investments | Certificates of Deposit | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Market Value | 0 | 0 |
Long-Term Investments | Asset-backed Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Market Value | 43,628,702 | 25,791,029 |
Long-Term Investments | Asset-backed Securities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Market Value | 0 | 0 |
Long-Term Investments | Asset-backed Securities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Market Value | 43,628,702 | 25,791,029 |
Long-Term Investments | Asset-backed Securities | 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 | 7,308,584 | 6,088,190 |
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 | 7,308,584 | 6,088,190 |
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 | Corporate Bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Market Value | 20,397,525 | 22,815,998 |
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 | 20,397,525 | 22,815,998 |
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 | Municipal Bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Market Value | 92,358,822 | 72,638,690 |
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 | 92,358,822 | 72,638,690 |
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, 2020 | Dec. 31, 2019 |
Debt Securities, Available-for-sale [Line Items] | ||
Cost | $ 295,692,106 | $ 269,889,067 |
Unrealized Gains | 4,899,312 | 1,974,255 |
Unrealized Losses | (732,888) | (587,564) |
Market Value | 299,858,530 | 271,275,758 |
Short-Term Investments | Certificates of Deposit | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost | 50,099,795 | 50,099,795 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Market Value | 50,099,795 | 50,099,795 |
Short-Term Investments | Government Securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost | 46,564,204 | 58,343,911 |
Unrealized Gains | 339,611 | 99,917 |
Unrealized Losses | 0 | (11,005) |
Market Value | 46,903,815 | 58,432,823 |
Short-Term Investments | Corporate Bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost | 29,047,745 | 29,025,624 |
Unrealized Gains | 84,838 | 194,061 |
Unrealized Losses | (10,181) | 0 |
Market Value | 29,122,402 | 29,219,685 |
Short-Term Investments | Other | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost | 2,867,906 | 2,631,750 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Market Value | 2,867,906 | 2,631,750 |
Short-Term Investments | Municipal Bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost | 2,079,998 | |
Unrealized Gains | 4,123 | |
Unrealized Losses | 0 | |
Market Value | 2,084,121 | |
Long-Term Investments | Certificates of Deposit | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost | 5,007,454 | 3,500,000 |
Unrealized Gains | 87,617 | 58,808 |
Unrealized Losses | (8,213) | (1,010) |
Market Value | 5,086,858 | 3,557,798 |
Long-Term Investments | Asset-backed Securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost | 43,046,638 | 25,971,156 |
Unrealized Gains | 988,808 | 0 |
Unrealized Losses | (406,744) | (180,127) |
Market Value | 43,628,702 | 25,791,029 |
Long-Term Investments | Government Securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost | 7,150,365 | 6,012,705 |
Unrealized Gains | 158,219 | 75,485 |
Unrealized Losses | 0 | 0 |
Market Value | 7,308,584 | 6,088,190 |
Long-Term Investments | Corporate Bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost | 20,271,904 | 22,306,130 |
Unrealized Gains | 330,691 | 509,868 |
Unrealized Losses | (205,070) | 0 |
Market Value | 20,397,525 | 22,815,998 |
Long-Term Investments | Municipal Bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost | 89,556,097 | 71,997,996 |
Unrealized Gains | 2,905,405 | 1,036,116 |
Unrealized Losses | (102,680) | (395,422) |
Market Value | $ 92,358,822 | $ 72,638,690 |
Investments (Schedule of Unreal
Investments (Schedule of Unrealized Loss on Investments) (Details) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
Investments [Abstract] | ||
Aggregate Unrealized Losses, Loss duration less than one year | $ 732,888 | $ 587,564 |
Aggregate Fair Value, Loss duration less than one year | 36,159,819 | 90,721,081 |
Aggregate Unrealized Losses, Loss duration greater than one year | 0 | 0 |
Aggregate Fair Value, Loss duration greater than one year | 0 | 0 |
Aggregate Unrealized Losses, Total | 732,888 | 587,564 |
Aggregate Fair Value, Total | $ 36,159,819 | $ 90,721,081 |
Investments (Investments Classi
Investments (Investments Classified by Contractual Maturity Date) (Details) - Fixed Income Securities | Mar. 31, 2020USD ($) |
Debt Securities, Available-for-sale [Line Items] | |
Due within one year | $ 128,210,132 |
Due between one and five years | 52,232,126 |
Due over five years | 116,548,364 |
Total | $ 296,990,622 |
Inventories (Schedule of Invent
Inventories (Schedule of Inventories) (Details) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |||
Raw materials | $ 170,585,611 | $ 164,974,553 | |
Work-in-process | 33,033,321 | 33,069,255 | |
Finished goods | 47,387,482 | 50,898,047 | |
Total Inventory | $ 251,006,414 | $ 248,941,855 | [1] |
[1] | The condensed consolidated balance sheet at December 31, 2019 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, 2020 | Mar. 31, 2019 | ||
Earnings Per Share [Abstract] | |||
NET INCOME | $ 89,505,801 | $ 104,280,411 | |
Less: Allocated to participating securities | 1,221,016 | 1,081,933 | |
Net Income available to common shareholders | $ 88,284,785 | $ 103,198,478 | |
Basic weighted average shares outstanding (in shares) | 246,309,869 | 257,822,836 | |
Net Income per share - Basic (in dollars per share) | [1] | $ 0.36 | $ 0.40 |
Reallocation of undistributed earnings | $ 4,184 | $ 3,813 | |
Net Income available to common shareholders - Diluted | $ 88,288,969 | $ 103,202,291 | |
Additional weighted average dilutive common stock equivalents (in shares) | 1,306,574 | 1,282,396 | |
Diluted weighted average shares outstanding (in shares) | 247,616,443 | 259,105,232 | |
Net Income per share - Diluted (in dollars per share) | [1] | $ 0.36 | $ 0.40 |
Shares related to stock plans not included in diluted average common shares outstanding because their effect would be anti-dilutive (in shares) | 177,966 | 1,799,477 | |
[1] | (1) Earnings Per Share has been adjusted to exclude the portion of net income allocated to participating securities as a result of share-based payment awards. |
Stock-Based Compensation Plan_2
Stock-Based Compensation Plans (Narrative) (Details) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2020USD ($)planshares | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Jun. 30, 2019shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share based compensation expense | $ 6,356,070 | $ 4,862,947 | ||
Compensation expense for share-based payments | 4,786,794 | |||
Employee Stock Option Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation cost | $ 6,999,332 | |||
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 | |||
Employee Stock Purchase Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares approved (in shares) | shares | 2,000,000 | |||
ESPP discount rate | 85.00% | |||
ESPP discount rate recognized as compensation expense | 15.00% | |||
Shares granted (in shares) | shares | 1,232,705 | |||
Restricted Stock Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation cost | $ 46,788,371 | |||
Restricted period, maximum, in years | 10 years | |||
Amortization expense | $ 4,362,318 | $ 2,723,579 | ||
Omnibus Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares authorized (in shares) | shares | 45,000,000 | |||
Shares issued under the Omnibus plan | shares | 6,748,255 | |||
Equity Incentive Plans | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of plans | plan | 2 | |||
Performance Shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation cost | $ 5,486,425 | |||
Amortization expense | $ 393,777 | $ 0 |
Stock-Based Compensation Plan_3
Stock-Based Compensation Plans (Weighted-Average Assumptions for the ESOP) (Details) - $ / shares | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | ||
Dividend yield | 2.00% | 2.03% |
Expected volatility | 26.52% | 23.56% |
Risk-free interest rate | 0.37% | 2.23% |
Expected term of options | 4 years 1 month 28 days | 4 years 2 months 8 days |
Weighted average grant-date fair value (in dollars per share) | $ 3.82 | $ 3.69 |
Comprehensive Income (AOCI Roll
Comprehensive Income (AOCI Rollforward) (Details) - USD ($) | 3 Months Ended | ||||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | [1] | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Balance at beginning of period | $ 1,938,087,820 | [1] | $ 1,861,751,660 | ||
Net current-period change | 91,009,698 | 105,605,015 | |||
Balance at end of period | 1,834,605,633 | 1,857,074,748 | |||
Accumulated other comprehensive gain (loss), end of period | 214,794 | $ (1,289,103) | |||
Accumulated Other Comprehensive Income (Loss) | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Balance at beginning of period | (1,289,103) | (1,600,338) | |||
Balance at end of period | 214,794 | (275,734) | |||
Accumulated other comprehensive gain (loss), end of period | 214,794 | (275,734) | |||
Foreign currency translation adjustments | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Balance at beginning of period | (2,384,589) | (1,674,887) | |||
Other Comprehensive (loss) income before reclassifications | (692,090) | 298,999 | |||
Net current-period change | (692,090) | 298,999 | |||
Balance at end of period | (3,076,679) | (1,375,888) | |||
Unrealized gains (losses) on available-for-sale debt securities | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Balance at beginning of period | 1,095,486 | 74,549 | |||
Other Comprehensive (loss) income before reclassifications | 2,225,196 | 1,095,581 | |||
Amounts reclassified from accumulated other comprehensive income | (29,209) | (69,976) | |||
Net current-period change | 2,195,987 | 1,025,605 | |||
Balance at end of period | $ 3,291,473 | $ 1,100,154 | |||
[1] | The condensed consolidated balance sheet at December 31, 2019 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, 2020 | Mar. 31, 2019 | |
Reclassification Out of Accumulated Other Comprehensive Income [Line Items] | ||
Provision for income taxes | $ (17,768,848) | $ (20,628,130) |
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 | 36,974 | 88,576 |
Provision for income taxes | (7,765) | (18,600) |
Total net reclassifications for the period | $ 29,209 | $ 69,976 |
Debt and Financing Arrangemen_2
Debt and Financing Arrangements (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Oct. 15, 2018 | |
Debt Instrument [Line Items] | ||
interest rate | 1.81% | |
Interest expense | $ 100,000 | |
Increase in borrowing rate | 1.00% | |
Interest expense annual increase | $ 800,000 | |
Revolving Facility | ||
Debt Instrument [Line Items] | ||
Principal amount | $ 150,000,000 | |
Long-term debt | $ 75,000,000 | |
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 | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Equity [Abstract] | ||
Stock repurchased (in shares) | 7 | |
Common stock issued under stock compensation plan (in shares) | 0.6 | |
Net decrease in period (in shares) | 6.4 | |
Increase in quarterly dividend rate (in dollars per share) | $ 0.005 | |
Dividends declared (in dollars per share) | $ 0.12 | $ 0.115 |
Dividends declared | $ 29.4 |
Segment Reporting (Schedule of
Segment Reporting (Schedule of Automotive and Other Segment Reporting) (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Segment Reporting Information [Line Items] | ||
Revenue | $ 453,761,726 | $ 468,588,997 |
Income from operations | 105,027,167 | 121,596,331 |
Automotive Products | ||
Segment Reporting Information [Line Items] | ||
Revenue | 439,855,587 | 455,798,643 |
Income from operations | 100,775,544 | 116,952,700 |
Other | ||
Segment Reporting Information [Line Items] | ||
Revenue | 13,906,139 | 12,790,354 |
Income from operations | $ 4,251,623 | $ 4,643,631 |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||
Effective income tax rate | 16.60% | 16.50% |
Revenue (Details)
Revenue (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 453,761,726 | $ 468,588,997 |
Automotive Segment | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 439,855,587 | 455,798,643 |
Other Segment | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 13,906,139 | 12,790,354 |
Automotive Products | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 439,855,587 | 455,798,643 |
Automotive Mirrors & Electronics | Automotive Segment | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 401,085,314 | 408,971,666 |
HomeLink Modules | Automotive Segment | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 38,770,273 | 46,826,977 |
Fire Protection Products | Other Segment | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 6,168,751 | 5,852,232 |
Windows Products | Other Segment | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 7,737,388 | 6,938,122 |
U.S. | Automotive Products | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 135,581,918 | 141,383,064 |
U.S. | Other Products | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 13,906,139 | 12,790,354 |
Germany | Automotive Products | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 72,785,724 | 78,449,927 |
Japan | Automotive Products | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 51,136,933 | 56,333,694 |
Mexico | Automotive Products | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 45,950,481 | 44,410,388 |
Other | Automotive Products | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 134,400,531 | $ 135,221,570 |
Leases (Details)
Leases (Details) | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Lessee, Lease, Description [Line Items] | |
Weighted average remaining lease term | 2 years |
Weighted average discount rate | 1.90% |
2020 (excluding the three months ended March 31, 2020) | $ 712,710 |
2021 | 615,756 |
2022 | 401,144 |
2023 | 159,027 |
2024 | 12,438 |
Thereafter | 2,668 |
Total future minimum lease payments | 1,903,743 |
Less imputed interest | (91,048) |
Total | 1,812,695 |
Accrued Liabilities | 844,330 |
Other Non-Current Liabilities | $ 968,365 |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Remaining lease terms | 1 year |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Remaining lease terms | 6 years |
Subsequent Event (Details)
Subsequent Event (Details) - Vaporsens Inc - Subsequent Event $ in Millions | Apr. 08, 2020USD ($) |
Business Acquisition [Line Items] | |
Purchase price of acquisition | $ 10.5 |
Initial investment in Vaporsens | 3 |
Cash paid to acquire business | 7.1 |
Restricted Stock | Common Stock | |
Business Acquisition [Line Items] | |
Equity interest investment | $ 3.4 |