Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Jan. 01, 2016 | Jun. 30, 2015 | |
Entity Registrant Name | GORMAN RUPP CO | ||
Entity Central Index Key | 42,682 | ||
Trading Symbol | grc | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Accelerated Filer | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Common Stock, Shares Outstanding (in shares) | 26,083,623 | ||
Entity Public Float | $ 468,847,646 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Net sales | $ 406,150 | $ 434,925 | $ 391,665 |
Cost of products sold | 313,570 | 327,366 | 298,010 |
Gross profit | 92,580 | 107,559 | 93,655 |
Selling, general and administrative expenses | 56,189 | 54,254 | 51,734 |
Operating income | 36,391 | 53,305 | 41,921 |
Other income | 1,157 | 940 | 3,050 |
Other expense | (282) | (511) | (694) |
Income before income taxes | 37,266 | 53,734 | 44,277 |
Income tax | 12,157 | 17,593 | 14,173 |
Net income | $ 25,109 | $ 36,141 | $ 30,104 |
Earnings per share (in dollars per share) | $ 0.96 | $ 1.38 | $ 1.15 |
Average number of shares outstanding (in shares) | 26,192,072 | 26,256,824 | 26,249,324 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Net income | $ 25,109 | $ 36,141 | $ 30,104 |
Cumulative translation adjustments | (4,719) | (3,276) | (1,381) |
Pension and postretirement medical liability adjustments, net of tax | (370) | (5,589) | 9,202 |
Other comprehensive (loss) income | (5,089) | (8,865) | 7,821 |
Comprehensive income | $ 20,020 | $ 27,276 | $ 37,925 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 23,724 | $ 24,491 |
Accounts receivable – net | 76,758 | 70,734 |
Inventories – net | $ 82,818 | 94,760 |
Deferred income taxes | 4,694 | |
Prepaid and other | $ 6,091 | 6,030 |
Total current assets | 189,391 | 200,709 |
Property, plant and equipment: | ||
Land | 3,736 | 3,562 |
Buildings | 104,128 | 100,943 |
Machinery and equipment | 163,875 | 162,155 |
Total | 271,739 | 266,660 |
Accumulated depreciation | (141,852) | (132,696) |
Property, plant and equipment – net | 129,887 | 133,964 |
Other assets | 3,860 | 6,313 |
Goodwill and other intangible assets – net | 41,063 | 39,918 |
Total assets | 364,201 | 380,904 |
Current liabilities: | ||
Accounts payable | $ 14,529 | 17,908 |
Short-term debt | 12,000 | |
Payroll and employee related liabilities | $ 10,871 | 11,355 |
Commissions payable | 7,950 | 9,448 |
Deferred revenue | 1,741 | 4,166 |
Accrued expenses | 8,369 | 9,469 |
Total current liabilities | 43,460 | 64,346 |
Noncurrent liabilities | 9,309 | 4,496 |
Postretirement benefits | 20,784 | 21,297 |
Deferred and other income taxes | 3,627 | 8,798 |
Total liabilities | 77,180 | 98,937 |
Equity: | ||
Outstanding – 26,083,623 shares at December 31, 2015 and 26,260,543 shares at December 31, 2014 (after deducting treasury shares of 965,173 and 788,253 in 2014, respectively), at stated capital amount | $ 5,095 | 5,133 |
Additional paid-in capital | 3,059 | |
Retained earnings | $ 304,341 | 291,101 |
Accumulated other comprehensive loss | (22,415) | (17,326) |
Total equity | 287,021 | 281,967 |
Liabilities and equity | $ 364,201 | $ 380,904 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - $ / shares | Dec. 31, 2015 | Dec. 31, 2014 |
Authorized (in shares) | 35,000,000 | 35,000,000 |
Par value (in dollars per share) | $ 0 | $ 0 |
Outstanding (in shares) | 26,083,623 | 26,260,543 |
Treasury shares (in shares) | 965,173 | 788,253 |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Total |
Balances (in shares) at Dec. 31, 2012 | 26,245,543 | ||||
Balances at Dec. 31, 2012 | $ 5,130 | $ 2,693 | $ 243,178 | $ (16,282) | $ 234,719 |
Net income | $ 30,104 | 30,104 | |||
Other comprehensive income | $ 7,821 | 7,821 | |||
Issuance of treasury shares (in shares) | 7,500 | ||||
Issuance of treasury shares | $ 1 | $ 129 | $ 28 | 158 | |
Cash dividends - $0.330 a share | (8,662) | (8,662) | |||
Balances (in shares) at Dec. 31, 2013 | 26,253,043 | ||||
Balances at Dec. 31, 2013 | $ 5,131 | $ 2,822 | 264,648 | $ (8,461) | 264,140 |
Issuance of treasury shares (in shares) | 7,500 | ||||
Net income | $ 36,141 | 36,141 | |||
Other comprehensive income | $ (8,865) | (8,865) | |||
Issuance of treasury shares (in shares) | 7,500 | ||||
Issuance of treasury shares | $ 2 | $ 237 | $ 27 | 266 | |
Cash dividends - $0.330 a share | (9,715) | (9,715) | |||
Balances (in shares) at Dec. 31, 2014 | 26,260,543 | ||||
Balances at Dec. 31, 2014 | $ 5,133 | $ 3,059 | 291,101 | $ (17,326) | 281,967 |
Issuance of treasury shares (in shares) | 7,500 | ||||
Net income | $ 25,109 | 25,109 | |||
Other comprehensive income | $ (5,089) | (5,089) | |||
Issuance of treasury shares (in shares) | 7,500 | ||||
Issuance of treasury shares | $ 2 | $ 184 | $ 26 | 212 | |
Cash dividends - $0.330 a share | (10,599) | (10,599) | |||
Balances (in shares) at Dec. 31, 2015 | 26,083,623 | ||||
Balances at Dec. 31, 2015 | $ 5,095 | 304,341 | $ (22,415) | 287,021 | |
Issuance of treasury shares (in shares) | 7,500 | ||||
Treasury shares repurchased (in shares) | (184,420) | ||||
Treasury shares repurchased | $ (40) | $ (3,243) | $ (1,296) | $ (4,579) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Cash flows from operating activities: | |||
Net income | $ 25,109 | $ 36,141 | $ 30,104 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 15,282 | 14,615 | 13,588 |
Pension expense | 7,657 | 2,708 | 7,164 |
Contributions to pension plan | (4,000) | (2,500) | (4,200) |
Deferred income taxes | (563) | (1,367) | 241 |
Gain on sale of property, plant and equipment | (88) | (343) | (2,535) |
Changes in operating assets and liabilities, net of effects of acquisitions: | |||
Accounts receivable – net | (4,750) | (8,529) | (662) |
Inventories – net | 12,576 | (2,987) | (48) |
Accounts payable | (4,123) | (693) | 2,985 |
Commissions payable | (1,498) | 3,367 | (1,487) |
Deferred revenue | (2,425) | (3,024) | 7,112 |
Accrued expenses | (2,436) | (3,700) | 6,947 |
Benefit obligations and other | (58) | (4,685) | (8,823) |
Net cash provided by operating activities | 40,683 | 29,003 | 50,386 |
Cash flows from investing activities: | |||
Capital additions – net | (8,260) | (13,278) | (21,014) |
Proceeds from sale of property, plant and equipment | 466 | 681 | $ 2,905 |
Payments for acquisitions, net of cash acquired | (3,386) | (16,667) | |
Net cash used for investing activities | (11,180) | (29,264) | $ (18,109) |
Cash flows from financing activities: | |||
Cash dividends | (10,599) | $ (9,715) | $ (8,662) |
Treasury shares repurchased | (4,579) | ||
Proceeds from bank borrowings | $ 18,000 | $ 6,000 | |
Payments to bank for borrowings | (13,912) | (15,000) | (19,000) |
Net cash used for financing activities | (29,090) | (6,715) | (21,662) |
Effect of exchange rate changes on cash | (1,180) | 344 | 389 |
Net (decrease) increase in cash and cash equivalents | (767) | (6,632) | 11,004 |
Cash and cash equivalents: | |||
Beginning of year | 24,491 | 31,123 | 20,119 |
End of period | $ 23,724 | $ 24,491 | $ 31,123 |
Note A - Summary of Significant
Note A - Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Significant Accounting Policies [Text Block] | Note A – Summa r y of Significant Accounting P olicies General Info r mation and Basis of P r esentation The Gorman-Rupp Company is a leading designer, manufacturer and international marketer of pumps and pump systems for use in diverse water, wastewater, construction, dewatering, industrial, petroleum, original equipment, agriculture, fire protection, heating, ventilating and air conditioning (HVAC), military and other liquid- handling applications. The consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles and include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany transactions and balances have been eliminated. Earnings per share are calculated based on the weighted-average number of common shares outstanding. Cash Equ i v alents and Sho r t- T e r m I n v estments The Company considers highly liquid instruments with maturities of 90 days or less to be cash equivalents. The Company periodically makes short-term investments for which cost approximates fair value. Short-term investments at December 31, 2015 and 2014 consist primarily of certificates of deposit, and are classified as prepaid and other on the Consolidated Balance Sheets. Accounts Rece i v a ble and All o w ance for Doubtful Accounts Accounts receivable are stated at the historical carrying amount net of allowance for doubtful accounts. The Company maintains an allowance for doubtful accounts for estimated losses from the failure of its customers to make required payments for products delivered. The Company estimates this allowance based on knowledge of the financial condition of customers, review of historical receivables and reserve trends and other relevant information. I n v ento r ies Inventories are stated at the lower of cost or market. The costs for approximately 73% of inventories at December 31, 2015 and 75% of inventories at December 31, 2014 are determined using the last-in, first-out (LIFO) method, with the remainder determined using the first-in, first-out (FIFO) method. Cost components include materials, inbound freight costs, labor and allocations of fixed and variable overheads on an absorption costing basis. Long-L i v ed Assets Property, plant and equipment are stated on the basis of cost. Repairs and maintenance costs are expensed as incurred. Depreciation for property, plant and equipment and amortization for finite-lived intangible assets are computed using the straight-line method over the estimated useful lives of the assets and are included in cost of products sold and selling, general and administrative expenses based on the use of the assets. Depreciation expense was $13.8 million, $13.2 million and $12.4 million during 2015, 2014 and 2013, respectively. Depreciation of property, plant and equipment is determined based on the following lives: Buildings (in years) 20 - 50 Machinery and equipment (in years) 5 - 15 Software (in years) 3 - 5 Amortization of finite-lived intangible assets is determined based on the following lives: Technology and drawings (in years) 13 - 20 Customer relationships (in years) 9 - 15 Other intangibles (in years) 2 - 18 Long-lived assets, except goodwill and indefinite-lived intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate the carrying amount may not be recovered through future net cash flows generated by the assets. Impairment losses may be recorded when the undiscounted cash flows estimated to be generated by those assets are less than the assets’ carrying amounts based on the excess of the carrying amounts over the estimated fair value of the assets. Goodwill and Indefinite-L i v ed Intan g ible Assets Goodwill and other indefinite-lived intangible assets are not amortized but are reviewed annually for impairment as of October 1 or whenever events or changes in circumstances indicate there may be a possible permanent loss of value using either a quantitative or qualitative analysis. The Company uses a market-based approach to estimate the fair value of our reporting units and performs a quantitative analysis using a discounted cash flow model and other valuation techniques, but may elect to perform a qualitative analysis when deemed appropriate. For 2015, the Company used a quantitative analysis for substantially all of its goodwill impairment testing under which the fair value for each reporting unit was estimated using a discounted cash flow model, which considered forecasted cash flows discounted at an estimated weighted- average cost of capital. The forecasted cash flows were based on the Company’s long-term operating plan and a terminal value was used to estimate the cash flows beyond the period covered by the operating plan. The weighted- average cost of capital is an estimate of the overall after-tax rate of return required by equity and debt market holders of a business enterprise. These analyses require the exercise of significant judgments, including judgments about appropriate discount rates, perpetual growth rates and the timing of expected future cash flows. Sensitivity analyses were performed around these assumptions in order to assess the reasonableness of the assumptions and the resulting estimated fair values. For 2015, based on the quantitative analysis, the fair values of the Company’s reporting units continue to exceed the respective carrying amounts. See Note J for additional information. A qualitative analysis may be performed by assessing certain trends and factors, including projected market outlook and growth rates, forecasted and actual sales and operating profit margins, discount rates, industry data and other relevant qualitative factors. These trends and factors are compared to, and based on, the assumptions used in the most recent quantitative assessment. Indefinite-lived intangible assets primarily consist of trademarks and trade names. The fair value of these assets is determined using a royalty relief methodology similar to that employed when the associated assets were acquired, but using updated estimates of future sales, cash flows and profitability. For 2015 and 2014, the fair value of indefinite lived intangible assets exceeded their carrying value. For additional information about goodwill and other intangible assets, see Note H. R e v e n ue Rec o gnition The Company’s revenues from product sales are recognized when all of the following criteria are met: persuasive evidence of a sale arrangement exists, the price is fixed or determinable, product delivery has occurred or services have been rendered, there are no further obligations to customers and collectability is probable. Product delivery occurs when the risks and rewards of ownership and title pass, which normally occurs upon shipment to the customer. Concentration of C r edit Risk The Company generally does not require collateral from its customers and has a very good collection history. There were no sales to a single customer that exceeded 10% of total net sales for the years ended December 31, 2015, 2014 or 2013. Shipping and Handling Costs The Company classifies all amounts billed to customers for shipping and handling as revenue and reflects related shipping and handling costs in cost of products sold. Ad v e r tising The Company expenses all advertising costs as incurred, which for the years ended December 31, 2015, 2014 and 2013 totaled $3.2 million, $3.5 million, and $3.4 million, respectively. P r oduct W a r ranties A liability is established for estimated future warranty and service claims based on historical claims experience and specific product failures.The Company expenses warranty costs directly to cost of products sold. Changes in the Company’s product warranty liability are: 2015 2014 2013 Balance at beginning of year $ 1,166 $ 1,170 $ 1,133 Provision 1,732 1,607 1,220 Claims (1,518 ) (1,611 ) (1,183 ) Balance at end of year $ 1,380 $ 1,166 $ 1,170 F o r eign Cu r r ency T ranslation Assets and liabilities of the Company’s operations outside the United States which are accounted for in a functional currency other than U.S. dollars are translated into U.S. dollars using year-end exchange rates. Revenues and expenses are translated at weighted-average exchange rates effective during the year. Foreign currency translation gains and losses are included as a component of accumulated other comprehensive loss within equity. Gains and losses resulting from foreign currency transactions, the amounts of which are not material, are included in other income and expense. F air V alue The carrying value of cash and cash equivalents, accounts receivable, accounts payable and short-term debt approximates their fair value. Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Reclassification Certain amounts for 2014 and 2014 have been reclassified to conform to the 2015 presentation. N e w Accounting P r onouncements The Company considers the applicability and impact of all Accounting Standard Updates (“ASUs”). ASUs not listed below were assessed and determined to be either not applicable or are expected to have minimal impact on the Company’s consolidated financial statements. In November 2015 the FASB issued ASU 2015-17, “ Income T a x es ( T opic 740): Balance Sheet Classification of Defe r red T a x es In May 2014, the FASB issued ASU 2014-09, “ Re v enue from Cont r acts with Customers ( T opic 606), |
Note B - Allowance for Doubtful
Note B - Allowance for Doubtful Accounts | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Allowance for Credit Losses [Text Block] | Note B – All o w ance for Doubtful Accounts The allowance for doubtful accounts was $917,000 and $474,000 at December 31, 2015 and 2014, respectively. |
Note C - Inventories
Note C - Inventories | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Inventory Disclosure [Text Block] | Note C – I n v ento r ies Inventories are stated at the lower of cost or market. Replacement cost approximates current cost and the excess over LIFO cost is approximately $59.1 million and $57.9 million at December 31, 2015 and 2014, respectively. Some inventory quantities were reduced during 2015, resulting in liquidation of some LIFO quantities carried at lower costs from earlier years versus current year costs. The related effect increased net income by $363,000. Allowances for excess and obsolete inventory totaled $5.0 million and $4.6 million at December 31, 2015 and 2014, respectively. I n v ento r ies-net 2015 2014 Raw materials and in-process $ 25,652 $ 16,217 Finished parts 46,270 42,414 Finished products 10,896 36,129 Total net inventories $ 82,818 $ 94,760 |
Note D - Financing Arrangements
Note D - Financing Arrangements | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | Note D – Financing A r ran g ements In May 2014, the Company borrowed $18.0 million under an unsecured bank loan agreement to finance the acquisition of Bayou City Pump, Inc. The loan bore interest at LIBOR plus 0.75%, adjustable and payable monthly with annual renewal. At December 31, 2015, there was no balance outstanding on the loan. The Company may borrow up to $20.0 million with interest at LIBOR plus 0.75% or at alternative rates as selected by the Company under an unsecured bank line of credit which matures in November 2017. At December 31, 2015 and 2014, $19.99 million and $20.0 million, respectively, were available for borrowing after deducting $6,000 in outstanding letters of credit in 2015. The Company also has an $8.0 million unsecured bank line of credit with interest at LIBOR plus 0.75% payable monthly which matures in May 2016. At December 31, 2015 and 2014, $3.9 million and $6.0 million, respectively, was available for borrowing after deducting $4.1 million and $4.0 million in outstanding letters of credit, respectively. The Company also has a $3.0 million bank guarantee with interest at 1.75% in an agreement dated June 2015. At December 31, 2015, $600,000 was available for borrowing after deducting $2.4 million in outstanding letters of credit. The financing arrangements described above contain nominal restrictive covenants, including limits on additional borrowings and maintenance of certain operating and financial ratios. At December 31, 2015 and 2014, the Company was in compliance with all requirements. Interest expense, which approximates interest paid, was $122,000, $134,000 and $146,000 in 2015, 2014 and 2013, respectively. The Company has operating leases for certain offices, manufacturing facilities, land, office equipment and automobiles. Rental expense relating to operating leases was $1.0 million in 2015 and $1.1 million in 2014 and 2013. The future minimum lease payments due under these operating leases as of December 31, 2015 are: 2016 2017 2018 2019 2020 The r eafter T otal $ 838 $ 551 $ 416 $ 168 $ 44 $ 10 $ 2,027 |
Note E - Accumulated Other Comp
Note E - Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Accumulated Other Comprehensive Loss [Text Block] | Note E – Accu m ulated Other Comp r ehens i v e Loss The reclassifications out of accumulated other comprehensive loss as reported in the Consolidated Statement of Income are: P ension and other post r eti r ement benefits: 2015 2014 2013 Recognized actuarial loss (a) $ 1,581 $ 483 $ 1,357 Settlement loss (b) 2,584 – 2,756 Settlement loss © 1,199 – 1,413 Total before income tax 5,364 483 5,526 Income tax (1,749 ) (177 ) (2,006 ) Net of income tax $ 3,615 $ 306 $ 3,520 (a) The recognized actuarial loss is included in the computation of net periodic benefit cost. See Note G for additional details. (b) This portion of the settlement loss is included in cost of products sold in the Consolidated Statements of Income. (c) This portion of the settlement loss is included in selling, general and administrative expenses in the Consolidated Statements of Income. The components of accumulated other comprehensive loss as reported in the Consolidated Balance Sheets are: Currency Pension and Accumulated Balance at January 1, 2013 $ 319 (16,601 ) (16,282 ) Reclassifications adjustments — 5,526 5,526 Current period credit (charge) (1,381 ) 8,925 7,544 Income tax benefit — (5,249 ) (5,249 ) Balance at December 31, 2013 (1,062 ) (7,399 ) (8,461 ) Reclassifications adjustments — 483 483 Current period (charge) credit (3,276 ) (9,294 ) (12,570 ) Income tax charge — 3,222 3,222 Balance at December 31, 2014 (4,338 ) $ (12,988 ) $ (17,326 ) Reclassifications adjustments — 5,364 5,364 Current period charge (4,719 ) (6,038 ) (10,757 ) Income tax benefit — 304 304 Balance at December 31, 201 5 $ (9,037 ) (13,358 ) (22,415 ) |
Note F - Income Taxes
Note F - Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | Note F – Income Taxes The components of income before income taxes are: 2015 2014 2013 United States $ 35,391 $ 49,692 $ 40,374 Foreign countries 1,875 4,042 3,903 Total $ 37,266 $ 53,734 $ 44,277 The components of income tax expense are: 2015 2014 2013 Current expense: Federal $ 11,465 $ 16,638 $ 12,159 Foreign 292 946 792 ) State and local 963 1,376 981 12,720 18,960 13,932 Deferred (benefit) expense: Federal (443 ) (1,181 ) 108 Foreign (112 ) (114 ) (38 ) State and local (8 ) (72 ) 171 (563 ) (1,367 ) 241 Income tax expense $ 12,157 $ 17,593 $ 14,173 The reconciliation between income tax expense and the amount computed by applying the statutory federal income tax rate of 35% to income before income taxes is: 2015 2014 2013 Income taxes at statutory rate $ 13,043 $ 18,807 $ 15,497 State and local income taxes, net of federal tax benefit 680 674 587 Research and development tax credits (380 ) (371 ) (740 ) Domestic production activities deduction (964 ) (1,324 ) (952 ) Lower foreign taxes differential (476 ) (583 ) (612 ) Uncertain tax positions 26 53 94 Valuation allowance (59 ) 174 162 Other 287 163 137 Income tax expense $ 12,157 $ 17,593 $ 14,173 The Company made income tax payments of $13.5 million, $19.4 million and $13.2 million in 2015, 2014 and 2013, respectively. Deferred income tax assets and liabilities consist of: 2015 2014 2013 Deferred tax assets: Inventories 1,664 $ 1,030 $ 1,688 Accrued liabilities 2,450 2,538 2,341 Postretirement health benefits obligation 7,547 7,602 6,545 Pension 3,443 1,649 — Deferred revenue - 1,267 — Other 292 550 101 Total deferred tax assets 15,396 14,636 10,675 Valuation allowance (277 ) (336 ) (162 ) Net deferred tax assets 15,119 14,300 10,513 Deferred tax liabilities: Depreciation and amortization (18,059 ) (17,711 ) (16,858 ) Pension - — (1,634 ) Total deferred tax liabilities (18,059 ) (17,711 ) (18,492 ) Net deferred tax liabilities (2,940 ) $ (3,411 ) $ (7,979 ) The Company has a valuation allowance as of December 31, 2015 of $277,000 against certain of its deferred tax assets. The comparable amount of valuation allowance at December 31, 2014 was $336,000. ASC 740 requires that a valuation allowance be recorded against deferred tax assets when it is more likely than not that some or all of a Company’s deferred tax assets will not be realized based on available positive and negative evidence. At December 31, 2015, total unrecognized tax benefits were $567,000. Of the total, $447,000 of unrecognized tax benefits, if ultimately recognized, would reduce the Company’s annual effective tax rate. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: 2015 201 4 2013 Balance at beginning of year $ 576 $ 516 $ 421 Additions based on tax positions related to the current year 113 158 189 Reductions due to lapse of applicable statute of limitations (101 ) (98 ) (46 ) Settlements (21 ) — (48 ) Balance at end of year $ 567 $ 576 $ 516 The Company is subject to income taxes in the U.S. federal and various state, local and foreign jurisdictions. Income tax regulations within each jurisdiction are subject to the interpretation of the related tax laws and regulations and require significant judgment to apply. With few exceptions, the Company is no longer subject to U.S. federal, state and local, or non-U.S. income tax examinations by tax authorities for the years before 2011. The Company has $56,000 of unrecognized tax benefits recorded for periods which the relevant statutes of limitations expire in the next 12 months. The Company is currently under examination by the Internal Revenue Service for its tax year ending December 31, 2013. Any adjustment from this examination is not expected to have a material impact on the consolidated financial position or results of operations of the Company. Management anticipates this examination will be resolved within the next 12 months. The Company has state tax credit carryforwards of $533,000 and $545,000 as of December 31, 2015 and 2014, respectively, set to expire between 2018 and 2025. The Company recognizes interest and penalties related to unrecognized tax benefits in income tax expense for all periods presented. The Company accrued approximately $116,000 and $99,000 for the payment of interest and penalties at December 31, 2015 and 2014, respectively. The Company did not provide taxes with respect to $19.8 million of undistributed earnings at December 31, 2015, since the earnings are considered by the Company to be permanently reinvested. In an unanticipated future event where these earnings are distributed or deemed distributed in a taxable transaction, the Company may be subject to United States income tax and foreign withholding taxes, the net tax liability of which is estimated to be $1.4 million. In September 2013, the Internal Revenue Service issued final regulations governing the income tax treatment of acquisitions, dispositions, and repairs of tangible property. Taxpayers are required to follow the new regulations in impact of the regulations is not material to the Company’s consolidated financial statements. |
Note G - Pension and Other Post
Note G - Pension and Other Postretirement Benefits | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Pension and Other Postretirement Benefits Disclosure [Text Block] | Note G – Pensions and Other Postretirement Benefits The Company sponsors a defined benefit pension plan (“Plan”) covering certain domestic employees. Benefits are based on each covered employee’s years of service and compensation. The Plan is funded in conformity with the funding requirements of applicable U.S. regulations. The Plan was closed to new participants effective January 1, 2008. Employees hired after this date, in eligible locations, participate in an enhanced 401(k) plan instead of the defined benefit pension plan. Employees hired prior to this date continue to accrue benefits. Additionally, the Company sponsors defined contribution pension plans made available to all domestic and Canadian employees. Total contributions to the plans in 2015 and 2014 were $1.6 million and were $1.3 million in 2013. The Company also sponsors a non-contributory defined benefit health care plan that provides health benefits to certain domestic and Canadian retirees and their spouses. The Company funds the cost of these benefits as incurred. For measurement purposes, and based on maximum benefits as defined by the plan, a zero percent annual rate of increase in the per capita cost of covered health care benefits for retirees age 65 and over was assumed for 2015 and is expected to remain constant going forward. A 5% rate of increase for retirees under age 65 was assumed. The Company recognizes the obligations associated with its defined benefit pension plan and defined benefit health care plan in its consolidated financial statements. The following table presents the plans’ funded status as of the measurement date reconciled with amounts recognized in the Company’s consolidated balance sheets: Pension Plan Postretirement Plan 2015 2014 2015 2014 Accumulated benefit obligation at end of year $ 63,830 $ 65,454 $ 22,430 $ 22,813 Change in projected benefit obligation: Benefit obligation at beginning of year $ 80,069 $ 70,635 $ 22,813 $ 19,794 Service cost 3,064 2,904 1,194 907 Interest cost 2,640 2,895 790 845 Settlement 1,431 — — — Benefits paid (10,069 ) (3,584 ) (1,094 ) (1,736 ) Effect of foreign exchange — — (94 ) (49 ) Actuarial loss (gain) 465 7,219 (1,179 ) 3,052 Benefit obligation at end of year $ 77,600 $ 80,069 $ 22,430 $ 22,813 Change in plan assets: Plan assets at beginning of year $ 75,573 $ 70,889 $ — $ — Actual return on plan assets (1,213 ) 5,768 — — Employer contributions 4,000 2,500 1,094 1,736 Benefits paid (10,069 ) (3,584 ) (1,094 ) (1,736 ) Plan assets at end of year 68,291 75,573 — — Funded status at end of year $ (9,309 ) $ (4,496 ) $ (22,430 ) $ (22,813 ) Amounts recognized in the Consolidated Balance Sheets consist of: Current liabilities $ — $ — $ (1,646 ) $ (1,516 ) Noncurrent liabilities (9,309 ) (4,496 ) (20,784 ) (21,297 ) Total liabilities $ (9,309 ) $ (4,496 ) $ (22,430 ) $ (22,813 ) Amounts recognized in accumulated other comprehensive loss consist of: Net actuarial loss (gain) $ 29,992 $ 28,836 $ (8,082 ) $ (7,601 ) Deferred tax (benefit) expense (11,590 ) (11,162 ) 3,038 2,915 After tax actuarial loss (gain) $ 18,402 $ 17,674 $ (5,044 ) $ (4,686 ) Components of net periodic benefit cost: 2015 2014 2013 Pension Plan Service cost $ 3,064 $ 2,904 $ 3,144 Interest cost 2,640 2,895 2,851 Expected return on plan assets (4,060 ) (4,755 ) (5,080 ) Recognized actuarial loss 2,230 1,664 2,080 Settlement loss 3,783 — 4,169 Net periodic benefit cost $ 7,657 $ 2,708 $ 7,164 Other changes in pension plan assets and benefit obligations recognized in other comprehensive loss: Net loss (gain) $ 1,156 $ 4,541 $ (10,734 ) Total expense (income) recognized in net periodic benefit cost and other comprehensive income $ 8,813 $ 7,249 $ (3,570 ) Postretirement Plan Service cost $ 1,194 $ 907 $ 1,153 Interest cost 790 845 724 Recognized actuarial gain (649 ) (1,181 ) (723 ) Net periodic benefit cost $ 1,335 $ 571 $ 1,154 Other changes in post retirement plan assets and benefit obligations recognized in other comprehensive loss: Net loss (gain) $ (529 ) $ 4,233 $ (3,717 ) Total expense (income) recognized in net periodic benefit cost and other comprehensive income $ 806 $ 4,804 $ (2,563 ) During 2015 and 2013, the Company recorded settlement losses relating to retirees that received lump-sum distributions from the Company’s defined benefit pension plan totaling $3.8 million and $4.2 million, respectively. These charges were the result of lump-sum payments to retirees which exceeded the Plan’s actuarial service and interest cost thresholds in each of 2015 and 2013. The cost threshold was not exceeded in 2014. The prior service cost is amortized on a straight-line basis over the average estimated remaining service period of active participants. The unrecognized actuarial gain or loss in excess of the greater of 10% of the benefit obligation or the market value of plan assets is also amortized on a straight-line basis over the average estimated remaining service period of active participants. Pension Postretirement 2015 2014 2015 2014 Weighted-average assumptions used to determine benefit obligations at December 31: Discount rate 3.70 % 3.45 % 3.90 % 3.60 % Rate of compensation increase 3.50 % 3.50 % — — Weighted-average assumptions used to determine net periodic benefit cost for years ended December 31: Discount rate 3.67 % 4.30 % 3.60 % 4.50 % Expected long-term rate of return on plan assets 6.00 % 7.00 % — — Rate of compensation increase 3.50 % 3.50 % — — To enhance the Company’s efforts to mitigate the impact of the defined benefit pension plan on its financial statements, the Company has recently moved towards a liability driven investing model to more closely align assets with liabilities based on when the liabilities are expected to come due. Currently, based on 2015 funding levels, equities may comprise between 14% and 34% of the Plan’s market value. Fixed income investments may comprise between 60% and 80% of the Plan’s market value. Alternative investments may comprise between 0% and 12% of the Plan’s market value. Cash and cash equivalents (including all senior debt securities with less than one year to maturity) may comprise between 0% and 10% of the Plan’s market value. Financial instruments included in pension plan assets are categorized into a fair value hierarchy of three levels, based on the degree of subjectivity inherent in the valuation methodology. Level 1 assets are based on unadjusted quoted prices in active markets that are accessible to the reporting entity at the measurement date for identical assets. Level 2 assets are valued at inputs other than quoted prices in active markets for identical assets that are observable either directly or indirectly for substantially the full term of the assets. Level 3 assets are valued based on unobservable inputs for the asset (i.e., supported by little or no market activity).These inputs include management’s own assessments about the assumptions that market participants would use in pricing assets (including assumptions about risk).The level in the fair value hierarchy within which the fair value measurement is classified is determined based on the lowest level input that is significant to the fair value measure in its entirety. All of the Plan’s assets are in level 1 or level 2 within the fair value hierarchy and the following table sets forth by asset class the Plan’s fair value of assets. Plan fair value asset allocation by category: 2015 $ % Level 1 Equity $ 16,908 25 % Fixed Income 1,468 2 % Mutual Funds 3,476 5 % Money Fund and Cash 1,011 1 % Total Level 1 22,863 33 % Level 2 Fixed Income 41,984 62 % Money Fund 3,428 5 % Total Level 2 45,412 67 % Level 3 Total Level 3 — — Total fair value of Plan assets $ 68,275 100 % 2014 $ % Level 1 Equity $ 17,819 23 % Fixed Income 2,169 3 % Mutual Funds 3,598 5 % Money Fund and Cash 1,901 3 % Total Level 1 25,487 34 % Level 2 Fixed Income 47,716 63 % Money Fund 2,362 3 % Total Level 2 50,078 66 % Level 3 Total Level 3 — — Total fair value of Plan assets $ 75,565 100 % Contributions The Company may contribute $2 million to $6 million to its pension plan in 2016. Expected futu r e benefit p a yments The following benefit payments are expected to be paid as follows based on actuarial calculations: 2016 2017 2018 2019 2020 Thereafter Pension $ 5,524 $ 7,498 $ 7,544 $ 6,055 $ 7,205 $ 29,274 Postretirement 1,678 1,677 1,651 1,656 1,666 8,757 A one percentage point increase in the assumed health care trend rate would increase postretirement expense by approximately $274,000, changing the benefit obligation by approximately $2.1 million; while a one percentage point decrease in the assumed health care trend rate would decrease postretirement expense by approximately $232,000, changing the benefit obligation by approximately $1.8 million. The assumed trend rates for healthcare costs are a 5% increase per year for retirees prior to the age 65 and 0% for retirees post age 65. A one percentage point change in the assumed rate of return on the defined benefit pension plan assets is estimated to have an approximate $677,000 effect on pension expense. Additionally, a one percentage point increase in the discount rate is estimated to have a $1.6 million decrease in pension expense, while a one percentage point decrease in the discount rate is estimated to have a $1.9 million increase in pension expense. |
Note H - Goodwill and Other Int
Note H - Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Goodwill and Intangible Assets Disclosure [Text Block] | Note H – Goodwill and Other Intan g ible Assets Changes in the carrying value of goodwill during the years ended December 31, 2015 and 2014 are as follows: Goodwill Balance at January 1, 2014 $ 18,046 Acquisition 4,725 Foreign currency (156 ) Balance at December 31, 2014 22,615 Acquisition 2,428 Foreign currency (484 ) Balance at December 31, 2015 $ 24,559 The major components of goodwill and other intangible assets are: 2015 2014 Historical Accumulated Historical Accumulated Finite-lived intangible assets: Customer relationships $ 12,706 $ 4,430 $ 12,175 $ 3,372 Technology & drawings 6,745 2,412 6,620 2,035 Other intangibles 2,406 1,577 1,544 1,517 Total finite-lived intangible assets 21,857 8,419 20,339 6,924 Goodwill 24,559 — 22,615 — Trade names & trademarks 3,066 — 3,888 — Total $ 49,482 $ 8,419 $ 46,842 $ 6,924 Amortization of intangible assets in 2015, 2014 and 2013 was $1.5 million, $1.4 million and $1.2 million, respectively. Amortization of these intangible assets for 2016 through 2020 is expected to approximate $1.5 million per year. |
Note I - Business Segment Infor
Note I - Business Segment Information | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | Note I – Business S e gment Info r mation The Company operates in one business segment comprising the design, manufacture and sale of pumps and pump systems. The Company’s products are used in water, wastewater, construction, industrial, petroleum, original equipment, agriculture, fire protection, heating, ventilation and air conditioning (HVAC), military and other liquid- handling applications. The pumps and pump systems are marketed in the United States and worldwide through a network of more than 1,000 distributors, through manufacturers’ representatives (for sales to many original equipment manufacturers), through third-party distributor catalogs, and by direct sales. International sales are made primarily through foreign distributors and representatives. The Company sells to more than 150 countries around the world. The components of customer sales, determined based on the location of customers are: 2015 % 2014 % 2013 % United States $ 269,628 66 $ 298,338 69 $ 257,038 66 Foreign countries 136,522 34 136,587 31 134,627 34 Total $ 406,150 100 $ 434,925 100 $ 391,665 100 Net sales from external customers by product category are: 201 5 2014 2013 Pumps and pump systems $ 352,652 $ 379,626 $ 336,779 Repairs of pumps and pump systems and other 53,498 55,299 54,886 Total $ 406,150 $ 434,925 $ 391,665 As of December 31, 2015 and 2014, 94% and 95% of the Company’s long-lived assets were located in the United States, respectively. |
Note J - Acquisition
Note J - Acquisition | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Business Combination Disclosure [Text Block] | Note J – Acquisitions As of August 2015, the Company’s subsidiary, Gorman-Rupp Europe B.V., acquired substantially all of the assets and certain liabilities of Hydro+ SA (Hydro) and Hydro+ Rental SPRL (Hydro Rental), subsequently renamed Gorman-Rupp Rental SPRL, based near Namur, Belgium.The Company assumed $1.9 million in bank debt, which was subsequently paid off in 2015. Hydro has been the Company’s Belgian pump and pump systems distributor since 1998, and in 2011 formed Hydro Rental to expand pump and pump system rentals in the same region. Hydro’s principal products are centrifugal pumps supplied by the Company, and Hydro has begun converting some of these pumps into packaged pump station systems tailored for its European market. As of the acquisition date, combined annual revenues of the Hydro companies were expected to be $4 million U.S. dollars. The Company recognized customer relationships of $748,000, technology and drawings of $130,000, tradenames and trademarks of $70,000 and goodwill of $2.4 million related to the asset acquisition of Hydro and Hydro Rental. The results of operations of the acquired businesses have been included in Gorman-Rupp’s consolidated results since August 2015. Supplemental pro forma information has not been provided as the acquisition did not have a material impact on the Company’s consolidated results of operations. In June 2014, the Company, through its wholly-owned subsidiary National Pump Company, acquired substantially all of the assets and certain liabilities of Bayou City Pump, Inc. (“BCP”). Founded in 1973, BCP is a leading manufacturer of and service provider for highly-reliable and energy-efficient vertical turbine pumping systems primarily for the inland and coastal marine liquid petroleum and chemical transportation market. BCP has steadily expanded its product designs and service capabilities in recent years to become a significant provider in North American marine transportation. BCP also has developed and manufactures a specialty sludge pumping system for use in a variety of industrial applications. BCP’s strong customer relationships and long history will help expand sales in targeted niche markets complementary to National Pump Company’s significant and growing vertical turbine products leadership position. In addition, its Houston Texas base will provide additional capacity and machining capabilities in combination with National Pump’s existing location acquired late in 2012. The Company recognized customer relationships of $4.1 million, technology and drawings of $830,000, tradenames and trademarks of $370,000 and goodwill of $4.7 million related to the asset acquisition of Bayou City Pump, Inc. The results of operations of the acquired business have been included in Gorman-Rupp’s consolidated results since June 2014. Supplemental pro forma information has not been provided as the acquisition did not have a material impact on the Company’s consolidated results of operations. Goodwill relating to the National Pump Company reporting unit comprising recent acquisitions (NPC) represents 4.5% of the Company’s December 31, 2015 total assets. Our annual impairment analysis performed as of October 1, 2015 concluded that NPC’s fair value was within 10% of its carrying value. If recently depressed U.S. agricultural conditions continue for an extended time, this market’s related growth and profitability assumptions may reduce NPC’s indicated fair value to require a potential future impairment charge. |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Consolidation, Policy [Policy Text Block] | General Info r mation and Basis of P r esentation The Gorman-Rupp Company is a leading designer, manufacturer and international marketer of pumps and pump systems for use in diverse water, wastewater, construction, dewatering, industrial, petroleum, original equipment, agriculture, fire protection, heating, ventilating and air conditioning (HVAC), military and other liquid- handling applications. The consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles and include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany transactions and balances have been eliminated. Earnings per share are calculated based on the weighted-average number of common shares outstanding. |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash Equ i v alents and Sho r t- T e r m I n v estments The Company considers highly liquid instruments with maturities of 90 days or less to be cash equivalents. The Company periodically makes short-term investments for which cost approximates fair value. Short-term investments at December 31, 2015 and 2014 consist primarily of certificates of deposit, and are classified as prepaid and other on the Consolidated Balance Sheets. |
Receivables, Policy [Policy Text Block] | Accounts Rece i v a ble and All o w ance for Doubtful Accounts Accounts receivable are stated at the historical carrying amount net of allowance for doubtful accounts. The Company maintains an allowance for doubtful accounts for estimated losses from the failure of its customers to make required payments for products delivered. The Company estimates this allowance based on knowledge of the financial condition of customers, review of historical receivables and reserve trends and other relevant information. |
Inventory, Policy [Policy Text Block] | I n v ento r ies Inventories are stated at the lower of cost or market. The costs for approximately 73% of inventories at December 31, 2015 and 75% of inventories at December 31, 2014 are determined using the last-in, first-out (LIFO) method, with the remainder determined using the first-in, first-out (FIFO) method. Cost components include materials, inbound freight costs, labor and allocations of fixed and variable overheads on an absorption costing basis. |
Property, Plant and Equipment, Policy [Policy Text Block] | Long-L i v ed Assets Property, plant and equipment are stated on the basis of cost. Repairs and maintenance costs are expensed as incurred. Depreciation for property, plant and equipment and amortization for finite-lived intangible assets are computed using the straight-line method over the estimated useful lives of the assets and are included in cost of products sold and selling, general and administrative expenses based on the use of the assets. Depreciation expense was $13.8 million, $13.2 million and $12.4 million during 2015, 2014 and 2013, respectively. Depreciation of property, plant and equipment is determined based on the following lives: Buildings (in years) 20 - 50 Machinery and equipment (in years) 5 - 15 Software (in years) 3 - 5 Amortization of finite-lived intangible assets is determined based on the following lives: Technology and drawings (in years) 13 - 20 Customer relationships (in years) 9 - 15 Other intangibles (in years) 2 - 18 Long-lived assets, except goodwill and indefinite-lived intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate the carrying amount may not be recovered through future net cash flows generated by the assets. Impairment losses may be recorded when the undiscounted cash flows estimated to be generated by those assets are less than the assets’ carrying amounts based on the excess of the carrying amounts over the estimated fair value of the assets. |
Goodwill and Intangible Assets, Goodwill, Policy [Policy Text Block] | Goodwill and Indefinite-L i v ed Intan g ible Assets Goodwill and other indefinite-lived intangible assets are not amortized but are reviewed annually for impairment as of October 1 or whenever events or changes in circumstances indicate there may be a possible permanent loss of value using either a quantitative or qualitative analysis. The Company uses a market-based approach to estimate the fair value of our reporting units and performs a quantitative analysis using a discounted cash flow model and other valuation techniques, but may elect to perform a qualitative analysis when deemed appropriate. For 2015, the Company used a quantitative analysis for substantially all of its goodwill impairment testing under which the fair value for each reporting unit was estimated using a discounted cash flow model, which considered forecasted cash flows discounted at an estimated weighted- average cost of capital. The forecasted cash flows were based on the Company’s long-term operating plan and a terminal value was used to estimate the cash flows beyond the period covered by the operating plan. The weighted- average cost of capital is an estimate of the overall after-tax rate of return required by equity and debt market holders of a business enterprise. These analyses require the exercise of significant judgments, including judgments about appropriate discount rates, perpetual growth rates and the timing of expected future cash flows. Sensitivity analyses were performed around these assumptions in order to assess the reasonableness of the assumptions and the resulting estimated fair values. For 2015, based on the quantitative analysis, the fair values of the Company’s reporting units continue to exceed the respective carrying amounts. See Note J for additional information. A qualitative analysis may be performed by assessing certain trends and factors, including projected market outlook and growth rates, forecasted and actual sales and operating profit margins, discount rates, industry data and other relevant qualitative factors. These trends and factors are compared to, and based on, the assumptions used in the most recent quantitative assessment. Indefinite-lived intangible assets primarily consist of trademarks and trade names. The fair value of these assets is determined using a royalty relief methodology similar to that employed when the associated assets were acquired, but using updated estimates of future sales, cash flows and profitability. For 2015 and 2014, the fair value of indefinite lived intangible assets exceeded their carrying value. For additional information about goodwill and other intangible assets, see Note H. |
Revenue Recognition, Policy [Policy Text Block] | R e v e n ue Rec o gnition The Company’s revenues from product sales are recognized when all of the following criteria are met: persuasive evidence of a sale arrangement exists, the price is fixed or determinable, product delivery has occurred or services have been rendered, there are no further obligations to customers and collectability is probable. Product delivery occurs when the risks and rewards of ownership and title pass, which normally occurs upon shipment to the customer. |
Concentration Risk, Credit Risk, Policy [Policy Text Block] | Concentration of C r edit Risk The Company generally does not require collateral from its customers and has a very good collection history. There were no sales to a single customer that exceeded 10% of total net sales for the years ended December 31, 2015, 2014 or 2013. |
Shipping and Handling Cost, Policy [Policy Text Block] | Shipping and Handling Costs The Company classifies all amounts billed to customers for shipping and handling as revenue and reflects related shipping and handling costs in cost of products sold. |
Advertising Costs, Policy [Policy Text Block] | Ad v e r tising The Company expenses all advertising costs as incurred, which for the years ended December 31, 2015, 2014 and 2013 totaled $3.2 million, $3.5 million, and $3.4 million, respectively. |
Standard Product Warranty, Policy [Policy Text Block] | P r oduct W a r ranties A liability is established for estimated future warranty and service claims based on historical claims experience and specific product failures.The Company expenses warranty costs directly to cost of products sold. Changes in the Company’s product warranty liability are: 2015 2014 2013 Balance at beginning of year $ 1,166 $ 1,170 $ 1,133 Provision 1,732 1,607 1,220 Claims (1,518 ) (1,611 ) (1,183 ) Balance at end of year $ 1,380 $ 1,166 $ 1,170 |
Foreign Currency Transactions and Translations Policy [Policy Text Block] | F o r eign Cu r r ency T ranslation Assets and liabilities of the Company’s operations outside the United States which are accounted for in a functional currency other than U.S. dollars are translated into U.S. dollars using year-end exchange rates. Revenues and expenses are translated at weighted-average exchange rates effective during the year. Foreign currency translation gains and losses are included as a component of accumulated other comprehensive loss within equity. Gains and losses resulting from foreign currency transactions, the amounts of which are not material, are included in other income and expense. |
Fair Value of Financial Instruments, Policy [Policy Text Block] | F air V alue The carrying value of cash and cash equivalents, accounts receivable, accounts payable and short-term debt approximates their fair value. |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. |
Reclassification, Policy [Policy Text Block] | Reclassification Certain amounts for 2014 and 2014 have been reclassified to conform to the 2015 presentation. |
New Accounting Pronouncements, Policy [Policy Text Block] | N e w Accounting P r onouncements The Company considers the applicability and impact of all Accounting Standard Updates (“ASUs”). ASUs not listed below were assessed and determined to be either not applicable or are expected to have minimal impact on the Company’s consolidated financial statements. In November 2015 the FASB issued ASU 2015-17, “ Income T a x es ( T opic 740): Balance Sheet Classification of Defe r red T a x es In May 2014, the FASB issued ASU 2014-09, “ Re v enue from Cont r acts with Customers ( T opic 606), |
Note A - Summary of Significa19
Note A - Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Notes Tables | |
Property, Plant and Equipment [Table Text Block] | Buildings (in years) 20 - 50 Machinery and equipment (in years) 5 - 15 Software (in years) 3 - 5 |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | Technology and drawings (in years) 13 - 20 Customer relationships (in years) 9 - 15 Other intangibles (in years) 2 - 18 |
Schedule of Product Warranty Liability [Table Text Block] | 2015 2014 2013 Balance at beginning of year $ 1,166 $ 1,170 $ 1,133 Provision 1,732 1,607 1,220 Claims (1,518 ) (1,611 ) (1,183 ) Balance at end of year $ 1,380 $ 1,166 $ 1,170 |
Note C - Inventories (Tables)
Note C - Inventories (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | I n v ento r ies-net 2015 2014 Raw materials and in-process $ 25,652 $ 16,217 Finished parts 46,270 42,414 Finished products 10,896 36,129 Total net inventories $ 82,818 $ 94,760 |
Note D - Financing Arrangemen21
Note D - Financing Arrangements (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Notes Tables | |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | 2016 2017 2018 2019 2020 The r eafter T otal $ 838 $ 551 $ 416 $ 168 $ 44 $ 10 $ 2,027 |
Note E - Accumulated Other Co22
Note E - Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Notes Tables | |
Reclassification out of Accumulated Other Comprehensive Income [Table Text Block] | P ension and other post r eti r ement benefits: 2015 2014 2013 Recognized actuarial loss (a) $ 1,581 $ 483 $ 1,357 Settlement loss (b) 2,584 – 2,756 Settlement loss © 1,199 – 1,413 Total before income tax 5,364 483 5,526 Income tax (1,749 ) (177 ) (2,006 ) Net of income tax $ 3,615 $ 306 $ 3,520 |
Comprehensive Income (Loss) [Table Text Block] | Currency Pension and Accumulated Balance at January 1, 2013 $ 319 (16,601 ) (16,282 ) Reclassifications adjustments — 5,526 5,526 Current period credit (charge) (1,381 ) 8,925 7,544 Income tax benefit — (5,249 ) (5,249 ) Balance at December 31, 2013 (1,062 ) (7,399 ) (8,461 ) Reclassifications adjustments — 483 483 Current period (charge) credit (3,276 ) (9,294 ) (12,570 ) Income tax charge — 3,222 3,222 Balance at December 31, 2014 (4,338 ) $ (12,988 ) $ (17,326 ) Reclassifications adjustments — 5,364 5,364 Current period charge (4,719 ) (6,038 ) (10,757 ) Income tax benefit — 304 304 Balance at December 31, 201 5 $ (9,037 ) (13,358 ) (22,415 ) |
Note F - Income Taxes (Tables)
Note F - Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Notes Tables | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | 2015 2014 2013 United States $ 35,391 $ 49,692 $ 40,374 Foreign countries 1,875 4,042 3,903 Total $ 37,266 $ 53,734 $ 44,277 2015 2014 2013 Current expense: Federal $ 11,465 $ 16,638 $ 12,159 Foreign 292 946 792 ) State and local 963 1,376 981 12,720 18,960 13,932 Deferred (benefit) expense: Federal (443 ) (1,181 ) 108 Foreign (112 ) (114 ) (38 ) State and local (8 ) (72 ) 171 (563 ) (1,367 ) 241 Income tax expense $ 12,157 $ 17,593 $ 14,173 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | 2015 2014 2013 Income taxes at statutory rate $ 13,043 $ 18,807 $ 15,497 State and local income taxes, net of federal tax benefit 680 674 587 Research and development tax credits (380 ) (371 ) (740 ) Domestic production activities deduction (964 ) (1,324 ) (952 ) Lower foreign taxes differential (476 ) (583 ) (612 ) Uncertain tax positions 26 53 94 Valuation allowance (59 ) 174 162 Other 287 163 137 Income tax expense $ 12,157 $ 17,593 $ 14,173 |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | 2015 2014 2013 Deferred tax assets: Inventories 1,664 $ 1,030 $ 1,688 Accrued liabilities 2,450 2,538 2,341 Postretirement health benefits obligation 7,547 7,602 6,545 Pension 3,443 1,649 — Deferred revenue - 1,267 — Other 292 550 101 Total deferred tax assets 15,396 14,636 10,675 Valuation allowance (277 ) (336 ) (162 ) Net deferred tax assets 15,119 14,300 10,513 Deferred tax liabilities: Depreciation and amortization (18,059 ) (17,711 ) (16,858 ) Pension - — (1,634 ) Total deferred tax liabilities (18,059 ) (17,711 ) (18,492 ) Net deferred tax liabilities (2,940 ) $ (3,411 ) $ (7,979 ) |
Schedule of Unrecognized Tax Benefits Roll Forward [Table Text Block] | 2015 201 4 2013 Balance at beginning of year $ 576 $ 516 $ 421 Additions based on tax positions related to the current year 113 158 189 Reductions due to lapse of applicable statute of limitations (101 ) (98 ) (46 ) Settlements (21 ) — (48 ) Balance at end of year $ 567 $ 576 $ 516 |
Note G - Pension and Other Po24
Note G - Pension and Other Postretirement Benefits (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Notes Tables | |
Schedule of Changes in Projected Benefit Obligations [Table Text Block] | Pension Plan Postretirement Plan 2015 2014 2015 2014 Accumulated benefit obligation at end of year $ 63,830 $ 65,454 $ 22,430 $ 22,813 Change in projected benefit obligation: Benefit obligation at beginning of year $ 80,069 $ 70,635 $ 22,813 $ 19,794 Service cost 3,064 2,904 1,194 907 Interest cost 2,640 2,895 790 845 Settlement 1,431 — — — Benefits paid (10,069 ) (3,584 ) (1,094 ) (1,736 ) Effect of foreign exchange — — (94 ) (49 ) Actuarial loss (gain) 465 7,219 (1,179 ) 3,052 Benefit obligation at end of year $ 77,600 $ 80,069 $ 22,430 $ 22,813 Change in plan assets: Plan assets at beginning of year $ 75,573 $ 70,889 $ — $ — Actual return on plan assets (1,213 ) 5,768 — — Employer contributions 4,000 2,500 1,094 1,736 Benefits paid (10,069 ) (3,584 ) (1,094 ) (1,736 ) Plan assets at end of year 68,291 75,573 — — Funded status at end of year $ (9,309 ) $ (4,496 ) $ (22,430 ) $ (22,813 ) Amounts recognized in the Consolidated Balance Sheets consist of: Current liabilities $ — $ — $ (1,646 ) $ (1,516 ) Noncurrent liabilities (9,309 ) (4,496 ) (20,784 ) (21,297 ) Total liabilities $ (9,309 ) $ (4,496 ) $ (22,430 ) $ (22,813 ) Amounts recognized in accumulated other comprehensive loss consist of: Net actuarial loss (gain) $ 29,992 $ 28,836 $ (8,082 ) $ (7,601 ) Deferred tax (benefit) expense (11,590 ) (11,162 ) 3,038 2,915 After tax actuarial loss (gain) $ 18,402 $ 17,674 $ (5,044 ) $ (4,686 ) |
Schedule of Costs of Retirement Plans [Table Text Block] | 2015 2014 2013 Pension Plan Service cost $ 3,064 $ 2,904 $ 3,144 Interest cost 2,640 2,895 2,851 Expected return on plan assets (4,060 ) (4,755 ) (5,080 ) Recognized actuarial loss 2,230 1,664 2,080 Settlement loss 3,783 — 4,169 Net periodic benefit cost $ 7,657 $ 2,708 $ 7,164 Other changes in pension plan assets and benefit obligations recognized in other comprehensive loss: Net loss (gain) $ 1,156 $ 4,541 $ (10,734 ) Total expense (income) recognized in net periodic benefit cost and other comprehensive income $ 8,813 $ 7,249 $ (3,570 ) Postretirement Plan Service cost $ 1,194 $ 907 $ 1,153 Interest cost 790 845 724 Recognized actuarial gain (649 ) (1,181 ) (723 ) Net periodic benefit cost $ 1,335 $ 571 $ 1,154 Other changes in post retirement plan assets and benefit obligations recognized in other comprehensive loss: Net loss (gain) $ (529 ) $ 4,233 $ (3,717 ) Total expense (income) recognized in net periodic benefit cost and other comprehensive income $ 806 $ 4,804 $ (2,563 ) |
Schedule of Assumptions Used [Table Text Block] | Pension Postretirement 2015 2014 2015 2014 Weighted-average assumptions used to determine benefit obligations at December 31: Discount rate 3.70 % 3.45 % 3.90 % 3.60 % Rate of compensation increase 3.50 % 3.50 % — — Weighted-average assumptions used to determine net periodic benefit cost for years ended December 31: Discount rate 3.67 % 4.30 % 3.60 % 4.50 % Expected long-term rate of return on plan assets 6.00 % 7.00 % — — Rate of compensation increase 3.50 % 3.50 % — — |
Schedule of Allocation of Plan Assets [Table Text Block] | 2015 $ % Level 1 Equity $ 16,908 25 % Fixed Income 1,468 2 % Mutual Funds 3,476 5 % Money Fund and Cash 1,011 1 % Total Level 1 22,863 33 % Level 2 Fixed Income 41,984 62 % Money Fund 3,428 5 % Total Level 2 45,412 67 % Level 3 Total Level 3 — — Total fair value of Plan assets $ 68,275 100 % 2014 $ % Level 1 Equity $ 17,819 23 % Fixed Income 2,169 3 % Mutual Funds 3,598 5 % Money Fund and Cash 1,901 3 % Total Level 1 25,487 34 % Level 2 Fixed Income 47,716 63 % Money Fund 2,362 3 % Total Level 2 50,078 66 % Level 3 Total Level 3 — — Total fair value of Plan assets $ 75,565 100 % |
Schedule of Expected Benefit Payments [Table Text Block] | 2016 2017 2018 2019 2020 Thereafter Pension $ 5,524 $ 7,498 $ 7,544 $ 6,055 $ 7,205 $ 29,274 Postretirement 1,678 1,677 1,651 1,656 1,666 8,757 |
Note H - Goodwill and Other I25
Note H - Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Notes Tables | |
Schedule of Goodwill [Table Text Block] | Goodwill Balance at January 1, 2014 $ 18,046 Acquisition 4,725 Foreign currency (156 ) Balance at December 31, 2014 22,615 Acquisition 2,428 Foreign currency (484 ) Balance at December 31, 2015 $ 24,559 |
Schedule of Intangible Assets and Goodwill [Table Text Block] | 2015 2014 Historical Accumulated Historical Accumulated Finite-lived intangible assets: Customer relationships $ 12,706 $ 4,430 $ 12,175 $ 3,372 Technology & drawings 6,745 2,412 6,620 2,035 Other intangibles 2,406 1,577 1,544 1,517 Total finite-lived intangible assets 21,857 8,419 20,339 6,924 Goodwill 24,559 — 22,615 — Trade names & trademarks 3,066 — 3,888 — Total $ 49,482 $ 8,419 $ 46,842 $ 6,924 |
Note I - Business Segment Inf26
Note I - Business Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Notes Tables | |
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area [Table Text Block] | 2015 % 2014 % 2013 % United States $ 269,628 66 $ 298,338 69 $ 257,038 66 Foreign countries 136,522 34 136,587 31 134,627 34 Total $ 406,150 100 $ 434,925 100 $ 391,665 100 |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | 201 5 2014 2013 Pumps and pump systems $ 352,652 $ 379,626 $ 336,779 Repairs of pumps and pump systems and other 53,498 55,299 54,886 Total $ 406,150 $ 434,925 $ 391,665 |
Note A - Summary of Significa27
Note A - Summary of Significant Accounting Policies (Details Textual) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Percentage of LIFO Inventory | 73.00% | 75.00% | |
Depreciation | $ 13.8 | $ 13.2 | $ 12.4 |
Advertising Expense | $ 3.2 | $ 3.5 | $ 3.4 |
Note A - Property, Plant and Eq
Note A - Property, Plant and Equipment Useful Lives (Details) | 12 Months Ended |
Dec. 31, 2015 | |
Building [Member] | Minimum [Member] | |
Lives | 20 years |
Building [Member] | Maximum [Member] | |
Lives | 50 years |
Machinery and Equipment [Member] | Minimum [Member] | |
Lives | 5 years |
Machinery and Equipment [Member] | Maximum [Member] | |
Lives | 15 years |
Software Development [Member] | Minimum [Member] | |
Lives | 3 years |
Software Development [Member] | Maximum [Member] | |
Lives | 5 years |
Note A - Amortization of Intang
Note A - Amortization of Intangible Assets Lives (Details) | 12 Months Ended |
Dec. 31, 2015 | |
Technology and Drawings [Member] | Minimum [Member] | |
Intangible assets lives | 13 years |
Technology and Drawings [Member] | Maximum [Member] | |
Intangible assets lives | 20 years |
Customer Relationships [Member] | Minimum [Member] | |
Intangible assets lives | 9 years |
Customer Relationships [Member] | Maximum [Member] | |
Intangible assets lives | 15 years |
Other Intangible Assets [Member] | Minimum [Member] | |
Intangible assets lives | 2 years |
Other Intangible Assets [Member] | Maximum [Member] | |
Intangible assets lives | 18 years |
Note A - Product Warranties (De
Note A - Product Warranties (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Balance at beginning of year | $ 1,166 | $ 1,170 | $ 1,133 |
Provision | 1,732 | 1,607 | 1,220 |
Claims | (1,518) | (1,611) | (1,183) |
Balance at end of year | $ 1,380 | $ 1,166 | $ 1,170 |
Note B - Allowance for Doubtf31
Note B - Allowance for Doubtful Accounts (Details Textual) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Allowance for Doubtful Accounts Receivable | $ 917,000 | $ 474,000 |
Note C - Inventories (Details T
Note C - Inventories (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Excess of Replacement or Current Costs over Stated LIFO Value | $ 59,100,000 | $ 57,900,000 |
Inventory, LIFO Reserve, Effect on Income, Net | (363,000) | |
Inventory Valuation Reserves | $ 5,000,000 | $ 4,600,000 |
Note C - Inventories - Inventor
Note C - Inventories - Inventories (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Raw materials and in-process | $ 25,652 | $ 16,217 |
Finished parts | 46,270 | 42,414 |
Finished products | 10,896 | 36,129 |
Total net inventories | $ 82,818 | $ 94,760 |
Note D - Financing Arrangemen34
Note D - Financing Arrangements (Details Textual) - USD ($) | 1 Months Ended | 12 Months Ended | |||
May. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Jun. 30, 2015 | |
Bank Line of Credit Maturing August 2015 [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||
Debt Instrument, Basis Spread on Variable Rate | 0.75% | ||||
Bank Line of Credit Maturing August 2015 [Member] | |||||
Unsecured Debt | $ 18,000,000 | $ 0 | |||
London Interbank Offered Rate (LIBOR) [Member] | Line of Credit Maturing November 2017 [Member] | |||||
Debt Instrument, Basis Spread on Variable Rate | 0.75% | ||||
London Interbank Offered Rate (LIBOR) [Member] | Line of Credit Maturing May 2016 [Member] | |||||
Debt Instrument, Basis Spread on Variable Rate | 0.75% | ||||
Line of Credit Maturing November 2017 [Member] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 20,000,000 | ||||
Line of Credit Facility, Remaining Borrowing Capacity | 19,990,000 | $ 20,000,000 | |||
Long-term Line of Credit | 6,000 | ||||
Line of Credit Maturing May 2016 [Member] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | 8,000,000 | ||||
Line of Credit Facility, Remaining Borrowing Capacity | 3,900,000 | 6,000,000 | |||
Letters of Credit Outstanding, Amount | 4,100,000 | 4,000,000 | |||
Bank Guarantee [Member] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 3,000,000 | ||||
Line of Credit Facility, Remaining Borrowing Capacity | 600,000 | ||||
Letters of Credit Outstanding, Amount | 2,400,000 | ||||
Line of Credit Facility, Interest Rate at Period End | 1.75% | ||||
Operating Leases, Rent Expense | 1,000,000 | 1,100,000 | $ 1,100,000 | ||
Interest Expense, Debt | $ 122,000 | $ 134,000 | $ 146,000 |
Note D - Future Minimum Lease P
Note D - Future Minimum Lease Payments (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Label 0 | $ 838 |
Label 0 | 551 |
Label 0 | 416 |
Label 0 | 168 |
Label 0 | 44 |
Label 0 | 10 |
Label 0 | $ 2,027 |
Note E - Accumulated Other Co36
Note E - Accumulated Other Comprehensive Income (Loss) - Reclassification out of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | Cost of Sales [Member] | ||||
Settlement loss | [1] | $ 2,584 | $ 2,756 | |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | ||||
Recognized actuarial loss (a) | [2] | 1,581 | $ 483 | 1,357 |
Total before income tax | 5,364 | 483 | 5,526 | |
Income tax | (1,749) | (177) | (2,006) | |
Net of income tax | 3,615 | $ 306 | 3,520 | |
Reclassification out of Accumulated Other Comprehensive Income [Member] | AOCI Attributable to Parent [Member] | General and Administrative Expense [Member] | ||||
Settlement loss | [3] | 1,199 | 1,413 | |
Total before income tax | (37,266) | $ (53,734) | (44,277) | |
Income tax | $ 12,157 | $ 17,593 | $ 14,173 | |
[1] | This portion of the settlement loss is included in cost of products sold in the Consolidated Statements of Income. | |||
[2] | The recognized actuarial loss is included in the computation of net periodic benefit cost. See Note G for additional details. | |||
[3] | This portion of the settlement loss is included in selling, general and administrative expenses in the Consolidated Statements of Income. |
Note E - Accumulated Other Co37
Note E - Accumulated Other Comprehensive Income (Loss) - Components of Accumulated Other Comprehensive Income (Loss) as Reported in the Consolidated Balance Sheets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Currency Translation Adjustments [Member] | |||
Balance | $ (4,338) | $ (1,062) | $ 319 |
Reclassifications adjustments | |||
Current period credit (charge) | $ (4,719) | $ (3,276) | $ (1,381) |
Income tax benefit | |||
Balance | $ (9,037) | $ (4,338) | $ (1,062) |
Pension And O P E B Adjustments [Member] | |||
Balance | (12,988) | (7,399) | (16,601) |
Reclassifications adjustments | 5,364 | 483 | 5,526 |
Current period credit (charge) | (6,038) | (9,294) | 8,925 |
Income tax benefit | 304 | 3,222 | (5,249) |
Balance | (13,358) | (12,988) | (7,399) |
Accumulated Other Comprehensive Income Loss [Member] | |||
Balance | (17,326) | (8,461) | (16,282) |
Reclassifications adjustments | 5,364 | 483 | 5,526 |
Current period credit (charge) | (10,757) | (12,570) | 7,544 |
Income tax benefit | 304 | 3,222 | (5,249) |
Balance | (22,415) | (17,326) | $ (8,461) |
Balance | (17,326) | ||
Balance | $ (22,415) | $ (17,326) |
Note F - Income Taxes (Details
Note F - Income Taxes (Details Textual) - USD ($) | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 35.00% | |||
Income Taxes Paid | $ 13,500,000 | $ 19,400,000 | $ 13,200,000 | |
Deferred Tax Assets, Valuation Allowance | 277,000 | 336,000 | 162,000 | |
Unrecognized Tax Benefits | 567,000 | 576,000 | $ 516,000 | $ 421,000 |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 447,000 | |||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Amount of Unrecorded Benefit | 56,000 | |||
Tax Credit Carryforward, Amount | 533,000 | 545,000 | ||
Income Tax Examination, Penalties and Interest Accrued | 116,000 | $ 99,000 | ||
Undistributed Earnings of Foreign Subsidiaries | 19,800,000 | |||
Deferred Tax Liability Not Recognized, Amount of Unrecognized Deferred Tax Liability, Undistributed Earnings of Foreign Subsidiaries | $ 1,400,000 |
Note F - Components of Income T
Note F - Components of Income Tax Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
UNITED STATES | |||
United States | $ 35,391 | $ 49,692 | $ 40,374 |
Foreign Countries [Member] | |||
United States | 1,875 | 4,042 | 3,903 |
United States | 37,266 | 53,734 | 44,277 |
Current expense: | |||
Federal | 11,465 | 16,638 | 12,159 |
Foreign | 292 | 946 | 792 |
State and local | 963 | 1,376 | 981 |
Total current | 12,720 | 18,960 | 13,932 |
Deferred (benefit) expense: | |||
Federal | (443) | (1,181) | 108 |
Foreign | (112) | (114) | (38) |
State and local | (8) | (72) | 171 |
Total deferred | (563) | (1,367) | 241 |
Income tax expense | $ 12,157 | $ 17,593 | $ 14,173 |
Note F - Reconciliation of Inco
Note F - Reconciliation of Income Tax Expense By Applying The Statutory Federal Rate (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income taxes at statutory rate | $ 13,043 | $ 18,807 | $ 15,497 |
State and local income taxes, net of federal tax benefit | 680 | 674 | 587 |
Research and development tax credits | (380) | (371) | (740) |
Domestic production activities deduction | (964) | (1,324) | (952) |
Lower foreign taxes differential | (476) | (583) | (612) |
Uncertain tax positions | 26 | 53 | 94 |
Valuation allowance | (59) | 174 | 162 |
Other | 287 | 163 | 137 |
Income tax expense | $ 12,157 | $ 17,593 | $ 14,173 |
Note F - Deferred Tax Assets an
Note F - Deferred Tax Assets and Liabilities (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Deferred tax assets: | |||
Inventories | $ 1,664,000 | $ 1,030,000 | $ 1,688,000 |
Accrued liabilities | 2,450,000 | 2,538,000 | 2,341,000 |
Postretirement health benefits obligation | 7,547,000 | 7,602,000 | $ 6,545,000 |
Pension | $ 3,443,000 | 1,649,000 | |
Deferred revenue | 1,267,000 | ||
Other | $ 292,000 | 550,000 | $ 101,000 |
Total deferred tax assets | 15,396,000 | 14,636,000 | 10,675,000 |
Valuation allowance | (277,000) | (336,000) | (162,000) |
Net deferred tax assets | 15,119,000 | 14,300,000 | 10,513,000 |
Deferred tax liabilities: | |||
Depreciation and amortization | $ (18,059,000) | $ (17,711,000) | (16,858,000) |
Pension | (1,634,000) | ||
Total deferred tax liabilities | $ (18,059,000) | $ (17,711,000) | (18,492,000) |
Net deferred tax liabilities | $ (2,940,000) | $ (3,411,000) | $ (7,979,000) |
Note F - Reconciliation of the
Note F - Reconciliation of the Beginning and Ending Amount Of Unrecognized Tax Benefits (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Balance at beginning of year | $ 576,000 | $ 516,000 | $ 421,000 |
Additions based on tax positions related to the current year | 113,000 | 158,000 | 189,000 |
Reductions due to lapse of applicable statute of limitations | (101,000) | $ (98,000) | (46,000) |
Settlements | (21,000) | (48,000) | |
Balance at end of year | $ 567,000 | $ 576,000 | $ 516,000 |
Note G - Pension and Other Po43
Note G - Pension and Other Postretirement Benefits (Details Textual) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Pension Plan [Member] | Minimum [Member] | |||
Defined Benefit Plans, Estimated Future Employer Contributions in Next Fiscal Year | $ 2,000,000 | ||
Pension Plan [Member] | Maximum [Member] | |||
Defined Benefit Plans, Estimated Future Employer Contributions in Next Fiscal Year | 6,000,000 | ||
Pension Plan [Member] | |||
Defined Contribution Plan, Employer Discretionary Contribution Amount | $ 1,600,000 | $ 1,600,000 | $ 1,300,000 |
Postretirement Health Coverage [Member] | Retirees Age65 And Over [Member] | |||
Defined Benefit Plan, Ultimate Health Care Cost Trend Rate | 0.00% | ||
Postretirement Health Coverage [Member] | Retirees Under Age65 [Member] | |||
Defined Benefit Plan, Ultimate Health Care Cost Trend Rate | 5.00% | ||
One Percentage Point Change in Assumed Rate of Return [Member] | |||
Defined Benefit Plan Effect On Pension Expense | $ 677,000 | ||
One Percentage Point Increase in Discount Rate [Member] | |||
Defined Benefit Plan Effect On Pension Expense | 1,600,000 | ||
One Percentage Point Decrease in Discount Rate [Member] | |||
Defined Benefit Plan Effect On Pension Expense | $ 1,900,000 | ||
Equity Securities [Member] | |||
Defined Benefit Plan, Target Plan Asset Allocations Range Minimum | 14.00% | ||
Defined Benefit Plan, Target Plan Asset Allocations Range Maximum | 34.00% | ||
Fixed Income Securities [Member] | |||
Defined Benefit Plan, Target Plan Asset Allocations Range Minimum | 60.00% | ||
Defined Benefit Plan, Target Plan Asset Allocations Range Maximum | 80.00% | ||
Alternative Investments [Member] | |||
Defined Benefit Plan, Target Plan Asset Allocations Range Minimum | 0.00% | ||
Defined Benefit Plan, Target Plan Asset Allocations Range Maximum | 12.00% | ||
Cash and Cash Equivalents [Member] | |||
Defined Benefit Plan, Target Plan Asset Allocations Range Minimum | 0.00% | ||
Defined Benefit Plan, Target Plan Asset Allocations Range Maximum | 10.00% | ||
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Settlements | $ 3,800,000 | $ 4,200,000 | |
Unrecognized Actuarial Gain (Loss) in Excess of Benefit Obligation, Percentage | 10.00% | ||
Defined Benefit Plan, Effect of One Percentage Point Increase on Service and Interest Cost Components | $ 274,000 | ||
Defined Benefit Plan, Effect of One Percentage Point Increase on Accumulated Postretirement Benefit Obligation | 2,100,000 | ||
Defined Benefit Plan, Effect of One Percentage Point Decrease on Service and Interest Cost Components | 232,000 | ||
Defined Benefit Plan, Effect of One Percentage Point Decrease on Accumulated Postretirement Benefit Obligation | $ 1,800,000 |
Note G - Amounts Recognized in
Note G - Amounts Recognized in the Company's Consolidated Balance Sheets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Pension Plan [Member] | |||
Accumulated benefit obligation at end of year | $ 63,830 | $ 65,454 | |
Change in projected benefit obligation: | |||
Benefit obligation at beginning of year | 80,069 | 70,635 | |
Service cost | 3,064 | 2,904 | $ 3,144 |
Interest cost | 2,640 | $ 2,895 | 2,851 |
Settlement | 1,431 | ||
Benefits paid | $ (10,069) | $ (3,584) | |
Effect of foreign exchange | |||
Actuarial loss (gain) | $ 465 | $ 7,219 | |
Benefit obligation at end of year | 77,600 | 80,069 | 70,635 |
Change in plan assets: | |||
Plan assets at beginning of year | 75,573 | 70,889 | |
Actual return on plan assets | (1,213) | 5,768 | |
Employer contributions | 4,000 | 2,500 | |
Benefits paid | (10,069) | (3,584) | |
Plan assets at end of year | 68,291 | 75,573 | 70,889 |
Funded status at end of year | $ (9,309) | $ (4,496) | |
Amounts recognized in the Consolidated Balance Sheets consist of: | |||
Current liabilities | |||
Noncurrent liabilities | $ (9,309) | $ (4,496) | |
Total liabilities | (9,309) | (4,496) | |
Net actuarial loss (gain) | 29,992 | 28,836 | |
Deferred tax (benefit) expense | (11,590) | (11,162) | |
After tax actuarial loss (gain) | 18,402 | 17,674 | |
Postretirement Plan [Member] | |||
Accumulated benefit obligation at end of year | 22,430 | 22,813 | |
Change in projected benefit obligation: | |||
Benefit obligation at beginning of year | 22,813 | 19,794 | |
Service cost | 1,194 | 907 | 1,153 |
Interest cost | $ 790 | $ 845 | 724 |
Settlement | |||
Benefits paid | $ (1,094) | $ (1,736) | |
Effect of foreign exchange | (94) | (49) | |
Actuarial loss (gain) | (1,179) | 3,052 | |
Benefit obligation at end of year | $ 22,430 | $ 22,813 | $ 19,794 |
Change in plan assets: | |||
Plan assets at beginning of year | |||
Actual return on plan assets | |||
Employer contributions | $ 1,094 | $ 1,736 | |
Benefits paid | $ (1,094) | $ (1,736) | |
Plan assets at end of year | |||
Funded status at end of year | $ (22,430) | $ (22,813) | |
Amounts recognized in the Consolidated Balance Sheets consist of: | |||
Current liabilities | (1,646) | (1,516) | |
Noncurrent liabilities | (20,784) | (21,297) | |
Total liabilities | (22,430) | (22,813) | |
Net actuarial loss (gain) | (8,082) | (7,601) | |
Deferred tax (benefit) expense | 3,038 | 2,915 | |
After tax actuarial loss (gain) | (5,044) | (4,686) | |
Plan assets at beginning of year | 75,565 | ||
Plan assets at end of year | 68,275 | 75,565 | |
Noncurrent liabilities | $ 9,309 | $ 4,496 |
Note G - Components of Net Peri
Note G - Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Pension Plan [Member] | |||
Service cost | $ 3,064 | $ 2,904 | $ 3,144 |
Interest cost | 2,640 | 2,895 | 2,851 |
Expected return on plan assets | (4,060) | (4,755) | (5,080) |
Recognized actuarial loss | 2,230 | $ 1,664 | 2,080 |
Settlement loss | 3,783 | 4,169 | |
Net periodic benefit cost | 7,657 | $ 2,708 | 7,164 |
Net loss (gain) | 1,156 | 4,541 | (10,734) |
Total expense (income) recognized in net periodic benefit cost and other comprehensive income | 8,813 | 7,249 | (3,570) |
Postretirement Plan [Member] | |||
Service cost | 1,194 | 907 | 1,153 |
Interest cost | 790 | 845 | 724 |
Recognized actuarial loss | (649) | (1,181) | (723) |
Net periodic benefit cost | 1,335 | 571 | 1,154 |
Net loss (gain) | (529) | 4,233 | (3,717) |
Total expense (income) recognized in net periodic benefit cost and other comprehensive income | $ 806 | $ 4,804 | $ (2,563) |
Note G - Assumptions Used (Deta
Note G - Assumptions Used (Details) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Pension Plan [Member] | ||
Discount rate | 3.70% | 3.45% |
Rate of compensation increase | 3.50% | 3.50% |
Discount rate | 3.67% | 4.30% |
Expected long-term rate of return on plan assets | 6.00% | 7.00% |
Rate of compensation increase | 3.50% | 3.50% |
Postretirement Plan [Member] | ||
Discount rate | 3.90% | 3.60% |
Rate of compensation increase | ||
Discount rate | 3.60% | 4.50% |
Expected long-term rate of return on plan assets | ||
Rate of compensation increase |
Note G - Allocation of Plan Ass
Note G - Allocation of Plan Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Equity Securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Plan Fair Value Assets | $ 16,908 | $ 17,819 |
Plan Fair Value Assets, Percentage | 25.00% | 23.00% |
Fixed Income Securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Plan Fair Value Assets | $ 1,468 | $ 2,169 |
Plan Fair Value Assets, Percentage | 2.00% | 3.00% |
Fixed Income Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Plan Fair Value Assets | $ 41,984 | $ 47,716 |
Plan Fair Value Assets, Percentage | 62.00% | 63.00% |
Mutual Funds [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Plan Fair Value Assets | $ 3,476 | $ 3,598 |
Plan Fair Value Assets, Percentage | 5.00% | 5.00% |
Cash [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Plan Fair Value Assets | $ 1,011 | $ 1,901 |
Plan Fair Value Assets, Percentage | 1.00% | 3.00% |
Money Market Funds [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Plan Fair Value Assets | $ 3,428 | $ 2,362 |
Plan Fair Value Assets, Percentage | 5.00% | 3.00% |
Fair Value, Inputs, Level 1 [Member] | ||
Plan Fair Value Assets | $ 22,863 | $ 25,487 |
Plan Fair Value Assets, Percentage | 33.00% | 34.00% |
Fair Value, Inputs, Level 2 [Member] | ||
Plan Fair Value Assets | $ 45,412 | $ 50,078 |
Plan Fair Value Assets, Percentage | 67.00% | 66.00% |
Fair Value, Inputs, Level 3 [Member] | ||
Plan Fair Value Assets | ||
Plan Fair Value Assets, Percentage | ||
Plan Fair Value Assets | $ 68,275 | $ 75,565 |
Plan Fair Value Assets, Percentage | 100.00% | 100.00% |
Note G - Expected Future Benefi
Note G - Expected Future Benefit Payments (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Pension Plan [Member] | |
2,016 | $ 5,524 |
2,017 | 7,498 |
2,018 | 7,544 |
2,019 | 6,055 |
2,020 | 7,205 |
Thereafter | 29,274 |
Postretirement Plan [Member] | |
2,016 | 1,678 |
2,017 | 1,677 |
2,018 | 1,651 |
2,019 | 1,656 |
2,020 | 1,666 |
Thereafter | $ 8,757 |
Note H - Goodwill and Other I49
Note H - Goodwill and Other Intangible Assets (Details Textual) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Two | $ 1.5 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 1.5 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 1.5 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Five | 1.5 | ||
Amortization of Intangible Assets | 1.5 | $ 1.4 | $ 1.2 |
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | $ 1.5 |
Note H - Changes in Carrying Va
Note H - Changes in Carrying Value of Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Balance | $ 22,615 | $ 18,046 |
Acquisition | 2,428 | 4,725 |
Foreign currency | (484) | (156) |
Balance | $ 24,559 | $ 22,615 |
Note H - Major Components of Go
Note H - Major Components of Goodwill and Other Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Customer Relationships [Member] | ||
Customer relationships | $ 12,706 | $ 12,175 |
Customer relationships | 4,430 | 3,372 |
Technology and Drawings [Member] | ||
Customer relationships | 6,745 | 6,620 |
Customer relationships | 2,412 | 2,035 |
Other Intangible Assets [Member] | ||
Customer relationships | 2,406 | 1,544 |
Customer relationships | 1,577 | 1,517 |
Trademarks and Trade Names [Member] | ||
Trade names & trademarks | 3,066 | 3,888 |
Customer relationships | 21,857 | 20,339 |
Customer relationships | 8,419 | 6,924 |
Goodwill | 24,559 | 22,615 |
Total | $ 49,482 | $ 46,842 |
Note I - Business Segment Inf52
Note I - Business Segment Information (Details Textual) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
UNITED STATES | ||
Long Lived Assets, Percent | 94.00% | 95.00% |
Number of Reportable Segments | 1 | |
Number of Countries in which Entity Operates | 150 |
Note I - Components of Customer
Note I - Components of Customer Sales Determined Based on the Location of Customers (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
UNITED STATES | |||
Revenues | $ 269,628 | $ 298,338 | $ 257,038 |
Revenues, Percent | 66.00% | 69.00% | 66.00% |
Foreign Countries [Member] | |||
Revenues | $ 136,522 | $ 136,587 | $ 134,627 |
Revenues, Percent | 34.00% | 31.00% | 34.00% |
Revenues | $ 406,150 | $ 434,925 | $ 391,665 |
Revenues, Percent | 100.00% | 100.00% | 100.00% |
Note I - Net Sales from Externa
Note I - Net Sales from External Customers by Product Category (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Pumps and Pump Systems [Member] | |||
Revenues | $ 352,652 | $ 379,626 | $ 336,779 |
Repairs and Other [Member] | |||
Revenues | 53,498 | 55,299 | 54,886 |
Revenues | $ 406,150 | $ 434,925 | $ 391,665 |
Note J - Acquisition (Details T
Note J - Acquisition (Details Textual) - USD ($) | 1 Months Ended | ||||
Aug. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | |
Hydro Companies [Member] | Customer Relationships [Member] | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 748,000 | ||||
Hydro Companies [Member] | Technology and Drawings [Member] | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 130,000 | ||||
Hydro Companies [Member] | Trademarks and Trade Names [Member] | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Indefinite-Lived Intangible Assets | 70,000 | ||||
Hydro Companies [Member] | |||||
Business Combination, Consideration Transferred, Liabilities Incurred | 1,900,000 | ||||
Approximate Annual Revenues | 4,000,000 | ||||
Goodwill | $ 2,400,000 | ||||
Bayou City Pump Inc [Member] | Customer Relationships [Member] | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 4,100,000 | ||||
Bayou City Pump Inc [Member] | Technology and Drawings [Member] | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 830,000 | ||||
Bayou City Pump Inc [Member] | Trademarks and Trade Names [Member] | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Indefinite-Lived Intangible Assets | 370,000 | ||||
Bayou City Pump Inc [Member] | |||||
Goodwill | $ 4,700,000 | ||||
National Pump Company [Member] | |||||
Reporting Unit, Goodwill as Percentage of Total Assets | 4.50% | ||||
Reporting Unit, Percentage of Fair Value in Excess of Carrying Amount | 10.00% | ||||
Goodwill | $ 24,559,000 | $ 22,615,000 | $ 18,046,000 |