Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2017 | Oct. 17, 2017 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | LDL | |
Entity Common Stock, Shares Outstanding | 17,241,883 | |
Entity Registrant Name | LYDALL INC /DE/ | |
Entity Central Index Key | 60,977 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Income Statement [Abstract] | ||||
Net sales | $ 180,041 | $ 155,725 | $ 520,407 | $ 422,660 |
Cost of sales | 140,061 | 117,532 | 396,750 | 316,100 |
Gross profit | 39,980 | 38,193 | 123,657 | 106,560 |
Selling, product development and administrative expenses | 24,819 | 19,896 | 73,697 | 59,062 |
Operating income | 15,161 | 18,297 | 49,960 | 47,498 |
Interest expense | 705 | 389 | 2,106 | 643 |
Other expense (income), net | 408 | (218) | 1,147 | (884) |
Income before income taxes | 14,048 | 18,126 | 46,707 | 47,739 |
Income tax expense | 3,404 | 5,392 | 11,201 | 15,023 |
Loss (income) from equity method investment | (31) | (51) | 37 | (51) |
Net income | $ 10,675 | $ 12,785 | $ 35,469 | $ 32,767 |
Earnings per share: | ||||
Basic (in USD per share) | $ 0.63 | $ 0.76 | $ 2.08 | $ 1.94 |
Diluted (in USD per share) | $ 0.62 | $ 0.75 | $ 2.05 | $ 1.92 |
Weighted average number of common shares outstanding: | ||||
Basic (shares) | 17,055 | 16,888 | 17,028 | 16,859 |
Diluted (shares) | 17,267 | 17,138 | 17,270 | 17,084 |
CONDENSED CONSOLIDATED STATEME3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 10,675 | $ 12,785 | $ 35,469 | $ 32,767 |
Other comprehensive income: | ||||
Foreign currency translation adjustments | 9,438 | (1,056) | 23,951 | (2,324) |
Pension liability adjustment, net of tax | 172 | 142 | 516 | 427 |
Unrealized gain/(loss) on hedging activities, net of tax | 37 | 0 | (7) | 0 |
Comprehensive income | $ 20,322 | $ 11,871 | $ 59,929 | $ 30,870 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 64,706 | $ 71,934 |
Accounts receivable, less allowances (2017 - $1,406; 2016 - $1,429) | 120,606 | 103,316 |
Inventories | 80,685 | 66,146 |
Taxes receivable | 6,724 | 3,883 |
Prepaid expenses | 3,439 | 4,085 |
Other current assets | 6,505 | 6,242 |
Total current assets | 282,665 | 255,606 |
Property, plant and equipment, at cost | 386,383 | 359,961 |
Accumulated depreciation | (220,995) | (199,166) |
Net, property, plant and equipment | 165,388 | 160,795 |
Goodwill | 68,777 | 63,606 |
Other intangible assets, net | 41,538 | 41,447 |
Other assets, net | 7,136 | 5,575 |
Total assets | 565,504 | 527,029 |
Current liabilities: | ||
Current portion of long-term debt | 257 | 634 |
Accounts payable | 72,505 | 56,346 |
Accrued payroll and other compensation | 16,862 | 14,016 |
Accrued taxes | 4,088 | 6,460 |
Other accrued liabilities | 12,249 | 12,988 |
Total current liabilities | 105,961 | 90,444 |
Long-term debt | 92,993 | 128,141 |
Deferred tax liabilities | 16,918 | 15,849 |
Benefit plan liabilities | 11,104 | 14,729 |
Other long-term liabilities | 4,192 | 4,410 |
Commitments and Contingencies (Note 14) | ||
Stockholders’ equity: | ||
Preferred stock | 0 | 0 |
Common stock | 249 | 249 |
Capital in excess of par value | 85,930 | 82,387 |
Retained earnings | 360,935 | 325,466 |
Accumulated other comprehensive loss | (23,490) | (47,950) |
Treasury stock, at cost | (89,288) | (86,696) |
Total stockholders’ equity | 334,336 | 273,456 |
Total liabilities and stockholders’ equity | $ 565,504 | $ 527,029 |
CONDENSED CONSOLIDATED BALANCE5
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Allowances of accounts receivable | $ 1,406 | $ 1,429 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Cash flows from operating activities: | ||
Net income | $ 35,469 | $ 32,767 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 19,386 | 14,064 |
Long-lived asset impairment charge | 772 | 0 |
Inventory step-up amortization | 1,108 | 1,607 |
Deferred income taxes | (466) | (719) |
Stock-based compensation | 3,240 | 3,070 |
Income (Loss) from equity method investment | 37 | (51) |
Changes in operating assets and liabilities: | ||
Accounts receivable | (12,138) | (15,380) |
Inventories | (11,795) | (150) |
Accounts payable | 18,071 | 10,930 |
Accrued payroll and other compensation | 2,044 | 2,652 |
Accrued taxes | (2,826) | 2,096 |
Other, net | (6,710) | (3,464) |
Net cash provided by operating activities | 46,192 | 47,422 |
Cash flows from investing activities: | ||
Business acquisitions, net of cash acquired | (335) | (101,099) |
Capital expenditures | (19,918) | (19,032) |
Net cash used for investing activities | (20,253) | (120,131) |
Cash flows from financing activities: | ||
Proceeds from borrowings | 0 | 85,000 |
Debt repayments | (35,674) | (10,320) |
Common stock issued | 409 | 611 |
Common stock repurchased | (2,592) | (809) |
Net cash (used for) provided by financing activities | (37,857) | 74,482 |
Effect of exchange rate changes on cash | 4,690 | (565) |
(Decrease) Increase in cash and cash equivalents | (7,228) | 1,208 |
Cash and cash equivalents at beginning of period | 71,934 | 75,909 |
Cash and cash equivalents at end of period | $ 64,706 | $ 77,117 |
CONDENSED CONSOLIDATED STATEME7
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Statement of Cash Flows [Abstract] | ||
Non-cash capital expenditures incurred but not yet paid | $ 3.6 | $ 4.2 |
Basis of Financial Statement Pr
Basis of Financial Statement Presentation | 9 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Basis of Financial Statement Presentation | Basis of Financial Statement Presentation Description of Business Lydall, Inc. and its subsidiaries (the “Company” or “Lydall”) design and manufacture specialty engineered nonwoven filtration media, industrial thermal insulating solutions, and thermal and acoustical barriers for filtration/separation and heat abatement and sound dampening applications. On July 7, 2016, the Company completed an acquisition of the nonwoven and coating materials businesses primarily operating under the Texel (“Texel”) brand from ADS, Inc. (“ADS”), a Canadian based corporation. The Texel operations manufacture nonwoven needle punch materials and predominantly serve the geosynthetic, liquid filtration, and other industrial markets. The acquired businesses are included in the Company's Technical Nonwovens reporting segment. On December 31, 2016, the Company completed an acquisition of the nonwoven needle punch materials businesses, operating under the Gutsche (“Gutsche”) brand, a German based corporation. The Gutsche operations manufacture nonwoven needle punch materials and predominantly serve the industrial filtration and high performance nonwoven markets. The acquired businesses are included in the Company's Technical Nonwovens reporting segment. Basis of Presentation The accompanying Condensed Consolidated Financial Statements include the accounts of Lydall, Inc. and its subsidiaries. All financial information is unaudited for the interim periods reported. All significant intercompany transactions have been eliminated in the Condensed Consolidated Financial Statements. The Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The operating results of Texel and Gutsche have been included in the Consolidated Statements of Operations beginning on their respective dates of acquisition. As part of the acquisition of Texel, the Company acquired a fifty percent interest in a joint venture, Afitex Texel Geosynthetiques Inc., which is accounted for under the equity method of accounting. The year-end Condensed Consolidated Balance Sheet was derived from the December 31, 2016 audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America. Management believes that all adjustments, which include only normal recurring adjustments necessary for a fair statement of the Company’s condensed consolidated financial position, results of operations and cash flows for the periods reported, have been included. For further information, refer to the audited consolidated financial statements and accompanying notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016 . Recent Accounting Pronouncements In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606)." The objective of this standard update is to remove inconsistent practices with regard to revenue recognition between US GAAP and IFRS. The standard intends to improve comparability of revenue recognition practices across entities, industries, jurisdictions and capital markets. ASU 2014-09 is effective for the Company’s interim and annual reporting periods beginning January 1, 2018, and is to be adopted using either a full retrospective or modified retrospective transition method with early adoption permitted for annual periods beginning after December 15, 2016. The Company anticipates adopting ASU 2014-09 under the modified retrospective transition method, with the cumulative effect of initially adopting this standard recognized through retained earnings at the date of adoption. The new standard requires new comprehensive qualitative and quantitative disclosures relating to the nature, amount, timing and uncertainty of revenue arising from contracts with customers, including significant judgments and estimates used when applying the guidance. The Company is executing a project plan that includes a phased approach to implementing ASU 2014-09. During the remainder of 2017, the Company is completing the second phase which includes conversion activities, such as establishing policies, identifying system impacts, integration of the standard update into financial reporting processes and systems, and developing an understanding of the financial impact of this standard on the Company’s consolidated financial statements, including the cumulative effect adjustment to be recorded upon implementation of this standard The Company continues to assess potential impacts to all of its segments under the new standard and has identified a potential impact to the timing of revenue recognition across all segments. The Company currently generally recognizes revenue at a point in time typically when products are shipped and risk of loss has transferred to the customer, whereas the implementation of the new standard will result in certain revenue streams moving to an over-time revenue recognition model. Under the new standard, the customized nature of some of our products combined with contractual provisions that provide us with an enforceable right to payment will likely require the Company to recognize revenue related to certain revenue streams prior to the product being shipped to the customer. The Company anticipates the transition to the new standard will result in changes to revenue recognition practices, including areas described above, but the Company will be unable to quantify that impact until the second phase of the project has been completed. Subsequent to the issuance of ASU No. 2014-09, the FASB has issued the following update; ASU No. 2016-20, “Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers”. The amendments in this update affects the guidance contained within ASU 2014-09 and will be assessed as part of the Company's revenue recognition project plan. In July 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2015-11, “Inventory” (Topic 330): Simplifying the Measurement of Inventory." This ASU requires an entity to measure inventory at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Subsequent measurement is unchanged for inventory measured using last-in, first-out (“LIFO”) or the retail inventory method. This ASU is effective for fiscal years beginning after December 15, 2016. The adoption of this ASU did not have any impact on the Company’s consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, "Leases (Topic 842)". This ASU requires entities that lease assets with lease terms of more than 12 months to recognize right-of-use assets and lease liabilities created by those leases on their balance sheets. This ASU will also require new qualitative and quantitative disclosures to help investors and other financial statement users better understand the amount, timing, and uncertainty of cash flows arising from leases. This ASU is effective for fiscal years beginning after December 15, 2018, with early adoption permitted. The Company is currently evaluating the method and impact the adoption of ASU 2016-02 will have on the Company’s consolidated financial statements and disclosures. In May 2017, the FASB issued ASU No. 2017-09, "Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting". This ASU requires an entity to apply modification accounting in Topic 718 when there are changes to the terms or conditions of a share-based payment award, unless the fair value, vesting conditions, and classification of the modified award are the same as the original award immediately before the original award is modified. This ASU is effective for fiscal years beginning after December 15, 2017, with early adoption permitted. The Company is currently evaluating the method and impact the adoption of ASU 2017-09 will have on the Company’s consolidated financial statements and disclosures. In August 2017, the FASB issued ASU No. 2017-12, "Derivatives and Hedging (Topic 815): Targeted Improvements to Account for Hedging Activities". This ASU provides various improvements revolving around the financial reporting of hedging relationships that will require an entity to amend the presentation and disclosure of hedging activities to better portray the economic results of an entity's risk management activities in its financial statements. This ASU will also require an entity with cash flow and net investment hedges existing at the date of the adoption to apply a cumulative-effect adjustment related to eliminating the separate measurement of ineffectiveness to accumulated other comprehensive income with a corresponding adjustment to the opening balance of retained earnings as of the beginning of the fiscal year that the entity adopts this ASU. This ASU is effective for fiscal years beginning after December 15, 2018, with early adoption permitted. The Company is currently evaluating the method and impact the adoption of ASU 2017-12 will have on the Company’s consolidated financial statements and disclosures. |
Acquisitions
Acquisitions | 9 Months Ended |
Sep. 30, 2017 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions On December 31, 2016, the Company completed an acquisition of the nonwoven needle punch materials businesses, which include MGF Gutsche & Co GmbH KG, FRG and Gutsche Environmental Technology (Yixing) Co. Ltd., China, operating under Gutsche (“Gutsche”), a German based corporation. The Gutsche operations manufacture nonwoven needle punch materials and predominantly serve the industrial filtration and high performance nonwoven markets. The Company acquired one hundred percent of Gutsche for $57.6 million , net of a receivable of $3.0 million related to an estimated post-closing purchase price adjustment. In the second quarter of 2017, the Company finalized the post closing adjustment resulting in an increase in the purchase price of $0.4 million resulting in a final purchase price of $58.0 million . The purchase price was financed with a combination of cash on hand and $31.6 million of borrowings from the Company's amended $175 million credit facility. The assets and liabilities of Gutsche have been included in the Consolidated Balance Sheet at December 31, 2016. The acquired businesses are included in the Company's Technical Nonwovens reporting segment. For the quarter ended September 30, 2017, Gutsche reported net sales and operating income of $13.9 million and $1.2 million , respectively. Operating income for the quarter ended September 30, 2017 included $0.1 million of purchase accounting inventory fair value step-up adjustments in cost of sales upon the sale of inventory. There were no sales or operating income for Gutsche during the quarter ended September 30, 2016 as the acquisition occurred on December 31, 2016. For the nine months ended September 30, 2017, Gutsche reported net sales and operating income of $37.2 million and $2.1 million , respectively. Operating income for the nine months ended September 30, 2017 included $0.6 million of purchase accounting inventory fair value step-up adjustments in cost of sales upon the sale of inventory and $0.1 million of restructuring expenses. There were no sales or operating income for Gutsche during the nine months ended September 30, 2016 as the acquisition occurred on December 31, 2016. On July 7, 2016, the Company completed an acquisition of the nonwoven and coating materials businesses primarily operating under Texel from ADS, a Canadian based corporation. The Texel operations manufacture nonwoven needle punch materials and predominantly serve the geosynthetic, liquid filtration, and other industrial markets. The Company acquired one hundred percent of Texel for $102.7 million in cash, including a post-closing working capital adjustment. The purchase price was financed with a combination of cash on hand and $85.0 million of borrowings from the Company’s amended $175 million credit facility. As part of the acquisition, the Company acquired a fifty percent interest in a joint venture, Afitex Texel Geosynthetiques, Inc., with a fair value of $0.6 million . The joint venture is accounted for under the equity method of accounting. The operating results of the Texel business are reported within the Technical Nonwovens segment. For the quarter ended September 30, 2017, Texel reported net sales and operating income of $26.5 million and $3.2 million , respectively. For the quarter ended September 30, 2016, Texel reported net sales and operating income of $23.2 million and $1.7 million , respectively. Operating income for the quarter ended September 30, 2016 included $1.6 million of purchase accounting inventory fair value step-up adjustments in cost of sales upon the sale of inventory. For the nine months ended September 30, 2017, Texel reported net sales and operating income of $62.3 million and $5.1 million , respectively. Operating income for the nine months ended September 30, 2017 included $0.5 million of purchase accounting inventory fair value step-up adjustments in cost of sales upon the sale of inventory. For the nine months ended September 30, 2016, Texel reported net sales and operating income of $23.2 million and $1.7 million , respectively. Operating income for the nine months ended September 30, 2016 included $1.6 million of purchase accounting inventory fair value step-up adjustments in cost of sales upon the sale of inventory. The following table summarizes the fair values of identifiable assets acquired and liabilities assumed at the date of the acquisitions: In thousands Texel Gutsche Cash and cash equivalents $ 1,610 $ 9,400 Accounts receivable 13,355 7,736 Inventories 17,525 6,417 Prepaid expenses and other current assets 2,469 1,125 Non-current environmental indemnification receivable (Note 14) 925 — Property, plant and equipment, net 31,525 7,969 Investment in joint venture 616 — Goodwill (Note 4) 28,655 19,729 Other intangible assets, net (Note 4) 22,887 15,622 Other long term assets — 1,545 Total assets acquired $ 119,567 $ 69,543 Current liabilities $ (8,520 ) $ (8,376 ) Long-term environmental remediation liability (Note 14) (925 ) — Deferred tax liabilities (7,413 ) (470 ) Other long-term liabilities — (2,742 ) Total liabilities assumed (16,858 ) (11,588 ) Net assets acquired $ 102,709 $ 57,955 The final purchase price allocation related to Texel reflects post-closing adjustments pursuant to the terms of the Texel Stock Purchase Agreement. The final purchase price allocation related to Gutsche reflects post-closing adjustments pursuant to the terms of the Gutsche Share Purchase Agreement. The following table reflects the actual operating results of the Company for the quarter and nine months ended September 30, 2017 and the unaudited pro forma operating results of the Company for the quarter and nine months ended September 30, 2016, which give effect to the acquisitions of Texel and Gutsche as if they had occurred on January 1, 2015. The pro forma information includes the historical financial results of the Company and the acquired businesses. The pro forma results are not necessarily indicative of the operating results that would have occurred had the acquisitions been effective January 1, 2015, nor are they intended to be indicative of results that may occur in the future. The pro forma information does not include the effects of any synergies related to the acquisitions. Quarter Ended Nine Months Ended (Actual) (Unaudited Pro Forma) (Actual) (Unaudited Pro Forma) In thousands 2017 2016 2017 2016 Net sales $ 180,041 169,126 $ 520,407 $ 499,875 Net income $ 10,675 14,206 $ 35,469 $ 37,532 Earnings per share: Basic $ 0.63 $ 0.84 $ 2.08 $ 2.23 Diluted $ 0.62 $ 0.83 $ 2.05 $ 2.20 Included in earnings during the quarter ended September 30, 2017 was $1.0 million of amortization expense and $0.1 million of fair value step-up adjustments to inventory related to Texel and Gutsche. Pro forma earnings during the quarter ended September 30, 2016 were adjusted to exclude non-recurring items such as fair value step-up adjustments to inventory of $1.6 million and acquisition related expenses of $0.8 million . Pro forma earnings during the quarter ended September 30, 2016 were adjusted to include $0.8 million of additional amortization expense of the acquired intangible assets recognized at fair value in purchase accounting and additional depreciation expense of $0.2 million resulting from increased basis of property, plant and equipment. Included in earnings during the nine months ended September 30, 2017 was $3.0 million of amortization expense, $1.1 million of fair value step-up adjustments to inventory and acquisition related expenses of $0.1 million related to Texel and Gutsche. Pro forma earnings during the nine months ended September 30, 2016 were adjusted to exclude non-recurring items such as acquisition related expenses of $3.2 million and fair value step-up adjustments to inventory of $1.6 million . Pro forma earnings during the nine months ended September 30, 2016 were adjusted to include $3.1 million of additional amortization expense of the acquired intangible assets recognized at fair value in purchase accounting, additional depreciation expense of $1.1 million resulting from increased basis of property, plant and equipment, as well as $0.5 million of interest expense associated with borrowings under the Company's Amended Credit Facility. Customer freight billings of $0.9 million were reclassed from costs of sales to net sales for the nine months ended September 30, 2016 . |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2017 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories as of September 30, 2017 and December 31, 2016 were as follows: In thousands September 30, December 31, Raw materials $ 32,194 $ 24,518 Work in process 26,191 17,161 Finished goods 23,984 25,360 82,369 67,039 Less: Progress billings (1,684 ) (893 ) Total inventories $ 80,685 $ 66,146 Included in work in process is gross tooling inventory of $17.0 million and $10.3 million at September 30, 2017 and December 31, 2016 , respectively. Tooling inventory, net of progress billings, was $15.4 million and $9.4 million at September 30, 2017 and December 31, 2016 , respectively. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 9 Months Ended |
Sep. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill: The Company tests its goodwill for impairment annually in the fourth quarter, and whenever events or changes in circumstances indicate that the carrying value may exceed its fair value. The changes in the carrying amount of goodwill by segment as of and for the quarter ended September 30, 2017 were as follows: December 31, Currency translation adjustments Additions September 30, 2017 In thousands Performance Materials $ 12,777 $ 462 $ — $ 13,239 Technical Nonwovens 50,829 4,386 323 55,538 Total goodwill $ 63,606 $ 4,848 $ 323 $ 68,777 Goodwill Associated with Acquisitions and Divestitures The goodwill addition of $0.3 million within the Technical Nonwovens segment is the result of the final post-closing adjustments related to the acquisition of Gutsche on December 31, 2016. Other Intangible Assets: The table below presents the gross carrying amount and, as applicable, the accumulated amortization of the Company’s acquired intangible assets other than goodwill included in “Other intangible assets, net” in the Condensed Consolidated Balance Sheets as of September 30, 2017 and December 31, 2016 : September 30, 2017 December 31, 2016 In thousands Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Amortized intangible assets Customer Relationships $ 39,383 $ (3,689 ) $ 36,131 $ (1,284 ) Patents 4,443 (3,738 ) 4,028 (3,300 ) Technology 2,500 (602 ) 2,500 (477 ) Trade Names 4,275 (1,199 ) 3,912 (394 ) License Agreements 632 (632 ) 583 (583 ) Other 577 (412 ) 536 (205 ) Total amortized intangible assets $ 51,810 $ (10,272 ) $ 47,690 $ (6,243 ) |
Long-term Debt and Financing Ar
Long-term Debt and Financing Arrangements | 9 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Long-term Debt and Financing Arrangements | Long-term Debt and Financing Arrangements On July 7, 2016, the Company amended its $100 million senior secured revolving credit facility (“Amended Credit Facility”) which increased the available borrowing from $100 million to $175 million , added a fourth lender and extended the maturity date to July 7, 2021. The Amended Credit Facility is secured by substantially all of the assets of the Company. Under the terms of the Amended Credit Facility, the lenders are providing a $175 million revolving credit facility to the Company, under which the lenders may make revolving loans and issue letters of credit to or for the benefit of the Company and its subsidiaries. The Company may request the Amended Credit Facility be increased by an aggregate amount not to exceed $50 million through an accordion feature, subject to specified conditions set forth in the Amended Credit Facility. The Amended Credit Facility contains a number of affirmative and negative covenants, including financial and operational covenants. The Company is required to meet a minimum interest coverage ratio. The interest coverage ratio requires that, at the end of each fiscal quarter, the ratio of consolidated EBIT to Consolidated Interest Charges, both as defined in the Amended Credit Facility, may not be less than 2.0 to 1.0 for the immediately preceding 12 month period. In addition, the Company must maintain a Consolidated Leverage Ratio, as defined in the Amended Credit Facility, as of the end of each fiscal quarter of no greater than 3.0 to 1.0 . The Company must also meet minimum consolidated EBITDA as of the end of each fiscal quarter for the preceding 12 month period of $30 million . The Company was in compliance with all covenants at September 30, 2017 and December 31, 2016. Interest is charged on borrowings at the Company’s option of either: (i) Base Rate plus the Applicable Rate, or (ii) the Eurodollar Rate plus the Applicable Rate. The Base Rate is a fluctuating rate equal to the highest of (a) the federal funds rate plus 0.50% , (b) the prime rate as set by Bank of America, and (c) the Eurocurrency Rate plus 1.00% . The Eurocurrency Rate means (i) if denominated in LIBOR quoted currency, a fluctuating LIBOR per annum rate equal to the London Interbank Offered Rate; (ii) if denominated in Canadian Dollars, the rate per annum equal to the Canadian Dealer Offered Rate; or (iii) the rate per annum as designated with respect to such alternative currency at the time such alternative currency is approved by the Lenders. The Applicable Rate is determined based on the Company’s Consolidated Leverage Ratio (as defined in the Amended Credit Agreement). The Applicable Rate added to the Base Rate Committed Loans ranges from 15 basis points to 100 basis points, and the Applicable Rate added to Eurocurrency Rate Committed Loans and Letters of Credit ranges from 75 basis points to 175 basis points. The Company pays a quarterly fee ranging from 17.5 basis points to 30 basis points on the unused portion of the $175 million available under the Amended Credit Facility. In April 2017, the Company entered into a three -year interest rate swap agreement transacted with a bank which converts the interest on the first notional $60.0 million of the Company's one-month LIBOR-based borrowings under its Amended Credit Facility from a variable rate, plus the borrowing spread, to a fixed rate of 1.58% plus the borrowing spread. The notional amount reduces quarterly by $5.0 million through March 31, 2020. The Company is accounting for the interest rate swap agreement as a cash flow hedge. Effectiveness of this derivative agreement is assessed quarterly by ensuring that the critical terms of the swap continue to match the critical terms of the hedged debt. At September 30, 2017 , the Company had borrowing availability of $78.4 million under the Amended Credit Facility, net of $92.6 million of borrowings outstanding and standby letters of credit outstanding of $4.0 million . In addition to the amounts outstanding under the Amended Credit Facility, the Company has various acquired foreign credit facilities totaling approximately $11.6 million . At September 30, 2017 , the Company's foreign subsidiaries had $0.1 million in borrowings outstanding as well as $3.0 million in standby letters of credit outstanding. Total outstanding debt consists of: September 30, December 31, In thousands Effective Rate Maturity 2017 2016 Revolver Loan, due July 7, 2021 2.24 % 2021 $ 92,600 $ 126,600 Other Foreign Bank Borrowings 0.80% - 3.40% 2017 - 2024 — 1,430 Capital Leases 1.65% - 2.09% 2019 - 2020 650 745 93,250 128,775 Less portion due within one year (257 ) (634 ) Total long-term debt $ 92,993 $ 128,141 The carrying value of the Company’s $175 million Amended Credit Facility approximates fair value given the variable rate nature of the debt. The fair values of the Company’s long-term debt are determined using discounted cash flows based upon the Company’s estimated current interest cost for similar type borrowings or current market value, which falls under Level 2 of the fair value hierarchy. The carrying values of the long-term debt approximate fair market value. The weighted average interest rate on long-term debt was 2.1% for the nine months ended September 30, 2017 and 1.4% for the year ended December 31, 2016 . |
Derivatives
Derivatives | 9 Months Ended |
Sep. 30, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | Derivatives The Company selectively uses financial instruments to manage market risk associated with exposure to fluctuations in interest rates. These financial exposures are monitored and managed by the Company as an integral part of its risk management program. The Company’s interest rate exposure is most sensitive to fluctuations in interest rates in the United States and Europe, which impact interest paid on its debt. The Company has debt with variable rates of interest based generally on LIBOR. From time to time, the Company may enter into interest rate swap agreements to manage interest rate risk. These instruments are designated as cash flow hedges and are recorded at fair value using Level 2 observable market inputs. Derivative instruments are recognized as either assets or liabilities on the balance sheet in either current or non-current other assets or other accrued liabilities or other long-term liabilities depending upon maturity and commitment. For derivative instruments that are designated and qualify as a cash flow hedge, the effective portion of the gain or loss on the derivative is reported as a component of other comprehensive income and reclassified into earnings in the same period or periods in which the hedge transaction affects earnings. Any ineffective portion, or amounts related to contracts that are not designated as hedges, are recorded directly to earnings. The Company's policy for classifying cash flows from derivatives is to report the cash flows consistent with the underlying hedged item. The Company does not use derivatives for speculative or trading purposes or to manage commodity exposures. In April 2017, the Company entered into a three -year interest rate swap agreement transacted with a bank which converts the interest on the first notional $60.0 million of the Company's one-month LIBOR-based borrowings under its Amended Credit Facility from a variable rate, plus the borrowing spread, to a fixed rate of 1.58% plus the borrowing spread. The notional amount reduces quarterly by $5.0 million through March 31, 2020. The interest rate swap agreement was accounted for as cash flow hedge. Effectiveness of this derivative agreement is assessed quarterly by ensuring that the critical terms of the swap continue to match the critical terms of the hedged debt. The following table sets forth the fair value amounts of derivative instruments held by the Company: September 30, 2017 December 31, 2016 In thousands Asset Derivatives Liability Derivatives Asset Derivatives Liability Derivatives Derivatives designated as hedging instruments: Interest rate contract $ — $ (11 ) $ — $ — Total derivatives $ — $ (11 ) $ — $ — The following table sets forth the income (loss), recorded in accumulated other comprehensive income (loss), net of tax, for the quarters and nine months ended September 30, 2017 and 2016 for derivatives held by the Company and designated as hedging instruments: Quarter Ended Nine Months Ended 2017 2016 2017 2016 Cash flow hedges: Interest rate contract $ 37 $ — $ (7 ) $ — $ 37 — $ (7 ) $ — |
Equity Compensation Plans
Equity Compensation Plans | 9 Months Ended |
Sep. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Equity Compensation Plans | Equity Compensation Plans As of September 30, 2017 , the Company’s equity compensation plans consisted of the 2003 Stock Incentive Compensation Plan (the “2003 Plan”) and the 2012 Stock Incentive Plan (the “2012 Plan” and together with the 2003 Plan, the “Plans”) under which incentive and non-qualified stock options and time and performance based restricted shares have been granted to employees and directors from authorized but unissued shares of common stock or treasury shares. The 2003 Plan is not active, but continues to govern all outstanding awards granted under the plan until the awards themselves are exercised or terminate in accordance with their terms. The 2012 Plan, approved by shareholders on April 27, 2012, authorizes 1.75 million shares of common stock for awards. The 2012 Plan also authorizes an additional 1.2 million shares of common stock to the extent awards granted under prior stock plans that were outstanding as of April 27, 2012 are forfeited. The 2012 Plan provides for the following types of awards: options, restricted stock, restricted stock units and other stock-based awards. The Company accounts for the expense of all share-based compensation by measuring the awards at fair value on the date of grant. The Company recognizes expense on a straight-line basis over the vesting period of the entire award. Options issued by the Company under its stock option plans have a term of ten years and generally vest ratably over a period of three to four years. Time-based restricted stock grants are expensed over the vesting period of the award, which is typically two to four years. The number of performance based restricted shares that vest or forfeit depend upon achievement of certain targets during the performance period. Prior to January 1, 2016, stock compensation expense included estimated effects of forfeitures. Upon adoption of ASU 2016-09, Improvements to Employee Share-Based Payment Accounting , in the first quarter of 2016, an accounting policy election was made to account for forfeitures as they occur. Compensation expense for performance based awards is recorded based upon the service period and management’s assessment of the probability of achieving the performance goals and will be adjusted based upon actual achievement. The Company incurred equity compensation expense of $1.0 million for each of the quarters ended September 30, 2017 and September 30, 2016 , and $3.2 million and $3.1 million for the nine months ended September 30, 2017 and September 30, 2016, respectively, for the Plans, including restricted stock awards. No equity compensation costs were capitalized as part of inventory. Stock Options The following table is a summary of outstanding and exercisable options as of September 30, 2017 : In thousands except per share amounts and years Shares Weighted- Average Exercise Price Aggregate Intrinsic Value Outstanding at September 30, 2017 393 $ 26.51 $ 12,350 Exercisable at September 30, 2017 214 $ 16.51 $ 8,700 Unvested at September 30, 2017 179 $ 38.41 $ 3,650 There were no stock options granted and 6,170 stock options exercised during the quarter ended September 30, 2017 and no stock options granted and 34,634 stock options exercised during the nine months ended September 30, 2017. The amount of cash received from the exercise of stock options was $0.1 million during the quarter ended September 30, 2017 and $ 0.4 million during the nine months ended September 30, 2017. The intrinsic value of stock options exercised was $0.2 million with a tax benefit of $0.1 million during the quarter ended September 30, 2017 and the intrinsic value of stock options exercised was $1.4 million with a tax benefit of $0.4 million during the nine months ended September 30, 2017. There were no stock options granted and 18,863 stock options exercised during the quarter ended September 30, 2016 and 18,300 stock options granted and 46,502 stock options exercised during the nine months ended September 30, 2016. The amount of cash received from the exercise of stock options was $0.2 million during the quarter ended September 30, 2016 and $0.6 million during the nine months ended September 30, 2016. The intrinsic value of stock options exercised was $0.7 million with a tax benefit of $0.2 million during the quarter ended September 30, 2016 and the intrinsic value of stock options exercised was $1.3 million with a tax benefit of $0.3 million during the nine months ended September 30, 2016. At September 30, 2017 , the total unrecognized compensation cost related to non-vested stock option awards was approximately $1.8 million , with a weighted average expected amortization period of 2.6 years . Restricted Stock Restricted stock includes both performance-based and time-based awards. There were no time-based restricted stock shares granted during the quarter and nine month period ended September 30, 2017 . There were no performance-based restricted shares granted during the quarter ended September 30, 2017 and 18,100 performance-based restricted shares granted for the nine months ended September 30, 2017. There were no performance-based restricted shares that vested during the quarter ended September 30, 2017 and 108,600 performance-based restricted shares that vested during the nine months ended September 30, 2017 in accordance with plan provisions. There were 6,000 time-based restricted shares that vested during the quarter ended September 30, 2017 and 15,288 time-based restricted shares that vested during the nine months ended September 30, 2017. There were 8,570 time-based restricted shares granted during the quarter ended September 30, 2016 and 16,500 time-based restricted shares granted during the nine months ended June 30, 2016. There were no performance-based restricted shares granted during the quarter ended September 30, 2016 and 7,380 performance-based shares granted in the nine months ended September 30, 2016, which have a 2018 earnings per share target. There were no performance-based restricted shares that vested during the quarter ended September 30, 2016 and there were 65,087 performance-based restricted shares that vested during the nine months ended September 30, 2016 in accordance with Plan provisions. There were 6,000 time-based restricted shares that vested during the quarter ended September 30, 2016 and there were 14,129 time-based restricted shares that vested during the nine months ended September 30, 2016. At September 30, 2017 , there were 187,620 unvested restricted stock awards with total unrecognized compensation cost related to these awards of $3.7 million with a weighted average expected amortization period of 1.8 years . Compensation expense for performance based awards is recorded based on the service period and management’s assessment of the probability of achieving the performance goals. |
Stock Repurchases
Stock Repurchases | 9 Months Ended |
Sep. 30, 2017 | |
Equity [Abstract] | |
Stock Repurchases | Stock Repurchases During the nine months ended September 30, 2017 , the Company purchased 44,352 shares of common stock valued at $2.6 million , through withholding, pursuant to provisions in agreements with recipients of restricted stock granted under the Company’s equity compensation plans, in which the Company withholds that number of shares having fair value equal to each recipient’s minimum tax withholding due. |
Restructuring
Restructuring | 9 Months Ended |
Sep. 30, 2017 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | Restructuring In April 2017, the Company commenced a restructuring plan in the Technical Nonwovens segment which will include plant consolidations and transfer of equipment to other facilities within the segment's Europe and China operations. The consolidation of certain plants, which is expected to conclude in the second quarter of 2019, is expected to reduce operating costs, increase efficiency and enhance the Company’s flexibility by better aligning its manufacturing footprint with the segment's customer base. Accordingly, the Company expects to record pre-tax expenses of approximately $5.0 million , in connection with this restructuring plan, of which approximately $4.8 million is expected to result in cash expenditures over the period of consolidation. The Company also expects to incur cash expenditures of approximately $3.5 million for capital expenditures associated with this plan. During the quarter ended September 30, 2017 , the Company recorded pre-tax restructuring expenses of $0.2 million as part of this restructuring plan in cost of sales for the quarter. During the nine months ended September 30, 2017, the Company recorded pre-tax restructuring expenses of $0.4 million as part of this restructuring plan. Restructuring expenses of $0.2 million were recorded in both cost of sales and selling, product development and administrative expenses for the nine months ended September 30, 2017. The Company expects to record approximately $0.7 million of restructuring expenses in the fourth quarter of 2017. Actual pre-tax expenses incurred and total estimated pre-tax expenses for the restructuring program by type are as follows: In thousands Severance and Related Expenses Contract Termination Expenses Facility Exit, Move and Set-up Expenses Total Expense incurred during quarter ended: June 30, 2017 $ 74 $ 185 $ 34 $ 293 September 30, 2017 87 (49 ) 116 154 Total pre-tax expense incurred $ 161 $ 136 $ 150 $ 447 Estimated remaining expense at September 30, 2017 1,000 150 3,400 4,550 Total estimated pre-tax expense $ 1,161 $ 286 $ 3,550 $ 4,997 There were cash outflows of $0.1 million for the restructuring program for the quarter and nine months ended September 30, 2017. Accrued restructuring costs were as follows at September 30, 2017 : In thousands Total Balance as of March 31, 2017 $ — Pre-tax restructuring expenses 293 Cash paid — Balance as of June 30, 2017 $ 293 Pre-tax restructuring expenses 71 Cash paid (54 ) Balance as of September 30, 2017 $ 310 |
Employer Sponsored Benefit Plan
Employer Sponsored Benefit Plans | 9 Months Ended |
Sep. 30, 2017 | |
Retirement Benefits [Abstract] | |
Employer Sponsored Benefit Plans | Employer Sponsored Benefit Plans As of September 30, 2017 , the Company maintains a defined benefit pension plan that covers certain domestic Lydall employees (“domestic pension plan”) that is closed to new employees and benefits are no longer accruing. The domestic pension plan is noncontributory and benefits are based on either years of service or eligible compensation paid while a participant is in the plan. The Company’s funding policy is to fund not less than the ERISA minimum funding standard and not more than the maximum amount that can be deducted for federal income tax purposes. Contributions of $1.2 million and $3.6 million were made during the quarter and nine months ended September 30, 2017, respectively. The Company does not expect to make any further contributions in the fourth quarter of 2017. Contributions of $3.6 million were made during the quarter and nine months ended September 30, 2016. The following is a summary of the components of net periodic benefit cost, which is recorded primarily within selling, product development and administrative expenses, for the domestic pension plan for the quarters and nine months ended September 30, 2017 and 2016 : Quarter Ended Nine Months Ended In thousands 2017 2016 2017 2016 Components of net periodic benefit cost Interest cost $ 514 $ 535 $ 1,543 $ 1,605 Expected return on assets (594 ) (605 ) (1,782 ) (1,815 ) Amortization of actuarial loss 273 233 819 700 Net periodic benefit cost $ 193 $ 163 $ 580 $ 490 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company’s effective tax rate was 24.2% and 29.7% for the quarters ended September 30, 2017 and 2016, and 24.0% and 31.5% for the nine months ended September 30, 2017 and 2016, respectively. The difference in the Company’s effective tax rate for the quarter ended September 30, 2017 compared to the quarter ended September 30, 2016 was primarily related to a net tax benefit of $1.4 million from the completion of a tax audit in the third quarter of 2017, partially offset by $0.4 million of tax expense related to a repatriation of foreign cash back into the United States. The difference in the Company's effective tax rate for the nine months ended September 30, 2017 compared to the nine months ended September 30, 2016 was primarily related to tax benefits from stock compensation of $1.7 million for the nine months ended September 30, 2017 compared to $0.4 million for the nine months ended September 30, 2016, the net tax benefit of $1.4 million in the third quarter of 2017 related to the completion of a tax audit and a more favorable mix of income in lower taxed jurisdictions during the nine months ended September 30, 2017. The Company and its subsidiaries file a consolidated federal income tax return, as well as returns required by various state and foreign jurisdictions. In the normal course of business, the Company is subject to examination by taxing authorities, including such major jurisdictions as the United States, France, Germany, China, the United Kingdom, the Netherlands and Canada. With few exceptions, the Company is no longer subject to U.S. federal examinations for years before 2015, state and local examinations for years before 2012, and non-U.S. income tax examinations for years before 2003. The Company’s effective tax rates in future periods could be affected by earnings being higher or lower in countries where tax rates differ from the United States federal tax rate, the relative impact of permanent tax adjustments on higher or lower earnings from domestic operations, changes in net deferred tax asset valuation allowances, stock vesting, the completion of acquisitions or divestitures, changes in tax rates or tax laws and the completion of tax projects and audits. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share For the quarters and nine months ended September 30, 2017 and 2016 , basic earnings per share were computed by dividing net income by the weighted average number of shares of common stock outstanding during the period. Unexercised stock options and unvested restricted shares are excluded from this calculation but are included in the diluted earnings per share calculation using the treasury stock method as long as their effect is not antidilutive. The following table provides a reconciliation of weighted-average shares used to determine basic and diluted earnings per share: Quarter Ended Nine Months Ended In thousands 2017 2016 2017 2016 Basic average common shares outstanding 17,055 16,888 17,028 16,859 Effect of dilutive options and restricted stock awards 212 250 242 225 Diluted average common shares outstanding 17,267 17,138 17,270 17,084 For each of the quarters ended September 30, 2017 and 2016, stock options for 38,280 shares and 91,900 shares of Common Stock were not considered in computing diluted earnings per common share because they were antidilutive. For the nine months ended September 30, 2017 and 2016, stock options for 38,280 shares and 96,455 shares of common stock, respectively, were not considered in computing diluted earnings per share because they were antidilutive. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information As of September 30, 2017, the Company’s reportable segments are Performance Materials, Technical Nonwovens, Thermal/Acoustical Metals, and Thermal/Acoustical Fibers. On December 31, 2016, the Company completed an acquisition of the nonwoven needle punch materials businesses, which include MGF Gutsche & Co GmbH KG, FRG and Gutsche Environmental Technology (Yixing) Co. Ltd., China, operating under Gutsche (“Gutsche”), a German based corporation. The Gutsche operations manufacture nonwoven needle punch materials and predominantly serve the industrial filtration and high performance nonwoven markets. The acquired businesses are included in the Company's Technical Nonwovens reporting segment. On July 7, 2016, the Company completed an acquisition of the nonwoven and coating materials businesses primarily operating under the Texel brand (“Texel”) from ADS, Inc. (“ADS”), a Canadian based corporation. The Texel operations manufacture nonwoven needle punch materials and predominantly serve the geosynthetic, liquid filtration, and other industrial markets. The acquired businesses are included in the Company's Technical Nonwovens reporting segment. During the third quarter of 2017, the Company announced its plan to combine the Thermal/Acoustical Metals and Thermal/Acoustical Fibers operating segments into a single operating segment named Thermal Acoustical Solutions. Combining these automotive segments into one segment is expected to allow the Company to better serve its customers, leverage operating disciplines and drive efficiencies across the global automotive operations. Through the balance of the year these two segments will continue to operate independently as the Company defines the future global structure and strategies of the combined businesses and expects to commence the reporting of the two businesses as a single consolidated operating segment effective January 1, 2018. Performance Materials Segment The Performance Materials segment includes filtration media solutions primarily for air, fluid power, and industrial applications (“Filtration”), thermal insulation solutions for building products, appliances, and energy and industrial markets (“Thermal Insulation”) and air and liquid life science applications (“Life Sciences Filtration”). Filtration products include LydAir® MG (Micro-Glass) Air Filtration Media, LydAir® MB (Melt Blown) Air Filtration Media, LydAir® SC (Synthetic Composite) Air Filtration Media, and Arioso™ Membrane Composite Media. These products constitute the critical media component of clean-air systems for applications in clean-space, commercial, industrial and residential HVAC, power generation, and industrial processes. Lydall has leveraged its extensive technical expertise and applications knowledge into a suite of media products covering the vast liquid filtration landscape across the engine and industrial fields. The LyPore® Liquid Filtration Media series address a variety of application needs in fluid power including hydraulic filters, air-water and air-oil coalescing, industrial fluid processes and diesel fuel filtration. Thermal Insulation products are high performance nonwoven veils, papers, mats and specialty composites for the building products, appliance, and energy and industrial markets. The Manniglas® Thermal Insulation brand is diverse in its product application ranging from high temperature seals and gaskets in ovens and ranges to specialty veils for HVAC and cavity wall insulation. The appLY® Mat Needled Glass Mats have been developed to expand Lydall’s high temperature technology portfolio for broad application into the appliance market and supplements the Lytherm® Insulation Media product brand, traditionally utilized in the industrial market for kilns and furnaces used in metal processing. Lydall’s Cryotherm® Super-Insulating Media, CRS-Wrap® Super-Insulating Media and Cryo-Lite™ Cryogenic Insulation products are industry standards for state-of-the-art cryogenic insulation designs used by manufacturers of cryogenic equipment for liquid gas storage, piping, and transportation. Life Sciences is comprised of products which have been designed to meet the stringent requirements of critical applications including biopharmaceutical pre-filtration and clarification, lateral flow diagnostic and analytical testing, respiratory protection, potable water filtration and high purity process filtration such as that found in food and beverage and medical applications. Lydall also offers ultra-high molecular weight polyethylene membranes under the Solupor® trade name. These specialty microporous membranes are utilized in various markets and applications including air and liquid filtration and transdermal drug delivery. Solupor® membranes incorporate a unique combination of high mechanical strength, chemical inertness, gamma stability and very high porosity making them ideal for many applications. Technical Nonwovens Segment The Technical Nonwovens segment primarily produces needle punch nonwoven solutions for myriad industries and applications. Products are manufactured and sold globally under the leading brands of Lydall Industrial Filtration, Southern Felt, Gutsche, and Texel. Industrial Filtration products include nonwoven rolled-good felt media and filter bags used primarily in industrial air and liquid filtration applications. Nonwoven filter media is the most effective solution to satisfy increasing emission control regulations in a wide range of industries, including power, cement, steel, asphalt, incineration, mining, food, and pharmaceutical. Advanced Materials products include nonwoven rolled-good media used in commercial applications and predominantly serves the geosynthetics, automotive, industrial,medical, and safety apparel markets. Automotive media is provided to Tier I/II suppliers and as well as the Company's Thermal/Acoustical Fibers segment. Technical Nonwovens segment products include air and liquid filtration media sold under the brand names Fiberlox® high performance filtration felts, Checkstatic™ conductive filtration felts, Microfelt® high efficiency filtration felts, Pleatlox® pleatable filtration felts, Ultratech™ PTFE filtration felts, Powertech® and Powerlox® power generation filtration felts, Microcap® high efficiency liquid filtration felts, Duotech membrane composite filtration felts, along with our porotex® family of high temperature filtration felts including microvel® and optivel® products. Technical Nonwovens Advanced Materials products are sold under the brand names Thermofit® thermo-formable products, Ecoduo® recycled content materials, Duotex® floor protection products, and Versaflex® composite molding materials. Technical Nonwovens also offers extensive finishing and coating capabilities which provide custom engineered properties tailored to meet the most demanding applications. The business leverages a wide range of fiber types and extensive technical capabilities to provide products that meet our customers’ needs across a variety of applications providing both high performance and durability. Thermal/Acoustical Metals Segment The Thermal/Acoustical Metals segment offers a full range of innovative engineered products tailored for the transportation sector to thermally shield sensitive components from high heat, improve exhaust gas treatment and lower harmful emissions as well as assist in the reduction of powertrain and road noise. Lydall products are found in the underbody (tunnel, fuel tank, rear muffler, spare tire) and underhood (outer dash, powertrain, catalytic converter, turbo charger, manifolds) of cars, trucks, SUVs, heavy duty trucks and recreational vehicles. Thermal/Acoustical Metals segment products are formed on production lines capable of efficiently combining multiple layers of metal and thermal - acoustical insulation media to provide an engineered thermal and acoustical shielding solution for an array of application areas in the global automotive and truck markets. The flux® product family in Thermal/Acoustical Metals includes several patented or IP-rich products that address applications which include: Direct Exhaust Mount heat shields, which are assembled to high temperature components like catalytic converters, turbochargers or exhaust manifolds using aluminized and stainless steel and high performance and high temperature heat insulating materials; Powertrain heat shields that absorb noise at the source and do not contribute to the engine's noise budget; and durable, thermally robust solutions for temperature sensitive plastic components such as fuel tanks that are in proximity to high temperature heat sources. Thermal/Acoustical Fibers Segment The Thermal/Acoustical Fibers segment offers innovative engineered products to assist primarily in noise vibration and harshness (NVH) abatement within the transportation sector. Lydall products are found in the interior (dash insulators, cabin flooring), underbody (wheel well, aerodynamic belly pan, fuel tank, exhaust) and under hood (engine compartment) of cars, trucks, SUVs, heavy duty trucks and recreational vehicles. Thermal/Acoustical Fibers segment products offer thermal and acoustical insulating solutions comprised of organic and inorganic fiber composites for the automotive and truck markets primarily in North America. Lydall’s dBCore® is a lightweight acoustical composite that emphasizes absorption principles over heavy-mass type systems. Lydall’s dBLyte® is a high-performance acoustical barrier with sound absorption and blocking properties and can be used throughout a vehicle’s interior to minimize intrusive noise from an engine compartment and road. Lydall’s ZeroClearance® is an innovative thermal solution that utilizes an adhesive backing for attachment and is used to protect vehicle components from excessive heat. Lydall’s specially engineered products provide a solution that provides weight reduction, superior noise suppression, and increased durability over conventional designs. Thermal/Acoustical Metals segment and Thermal/Acoustical Fibers segment operating results include allocations of certain costs shared between the segments. The tables below present net sales and operating income by segment for the quarters and nine months ended September 30, 2017 and 2016 , and also a reconciliation of total segment net sales and operating income to total consolidated net sales and operating income. Consolidated net sales by segment: Quarter Ended Nine Months Ended In thousands 2017 2016 2017 2016 Performance Materials Segment: Filtration $ 19,946 $ 18,045 $ 58,047 $ 53,861 Thermal Insulation 7,283 7,081 22,116 20,570 Life Sciences Filtration 2,318 3,705 7,436 10,749 Performance Materials Segment net sales 29,547 28,831 87,599 85,180 Technical Nonwovens Segment (1) : Industrial Filtration 38,346 25,414 108,884 67,805 Advanced Materials (2) 34,960 26,870 90,438 43,526 Technical Nonwovens net sales 73,306 52,284 199,322 111,331 Thermal/Acoustical Metals Segment: Metal parts 41,522 39,807 124,043 117,578 Tooling 8,297 4,830 13,441 14,301 Thermal/Acoustical Metals Segment net sales 49,819 44,637 137,484 131,879 Thermal/Acoustical Fibers Segment: Fiber parts 34,739 35,073 116,430 107,629 Tooling 884 1,356 4,064 4,829 Thermal/Acoustical Fibers Segment net sales 35,623 36,429 120,494 112,458 Eliminations and Other (2) (8,254 ) (6,456 ) (24,492 ) (18,188 ) Consolidated Net Sales $ 180,041 $ 155,725 $ 520,407 $ 422,660 Operating income by segment: Quarter Ended Nine Months Ended In thousands 2017 2016 2017 2016 Performance Materials $ 3,063 $ 3,283 $ 8,516 $ 10,102 Technical Nonwovens (1) 8,589 5,662 19,792 12,807 Thermal/Acoustical Metals 1,836 5,451 7,453 13,090 Thermal/Acoustical Fibers 8,716 10,026 33,162 30,980 Corporate Office Expenses (7,043 ) (6,125 ) (18,963 ) (19,481 ) Consolidated Operating Income $ 15,161 $ 18,297 $ 49,960 $ 47,498 (1) The Technical Nonwovens segment reports results of Texel and Gutsche for the period following the dates of acquisition of July 7, 2016 and December 31, 2016, respectively. (2) Included in the Technical Nonwovens segment and Eliminations and Other is $6.5 million and $4.5 million in intercompany sales to the T/A Fibers segment for the quarters ended September 30, 2017 and 2016 , respectively, and $19.5 million and $13.6 million for the nine months ended September 30, 2017 and 2016 , respectively. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies The Company is subject to legal proceedings, claims, investigations and inquiries that arise in the ordinary course of business such as, but not limited to, actions with respect to commercial, intellectual property, employment, personal injury, and environmental matters. The Company believes that it has meritorious defenses against the claims currently asserted against it and intends to defend them vigorously. While the outcome of litigation is inherently uncertain and the Company cannot be sure that it will prevail in any of the cases, subject to the matter referenced below, the Company is not aware of any matters pending that are expected to have a material adverse effect on the Company’s business, financial position, results of operations or cash flows. Lydall Gerhardi GmbH Co. & KG (“Lydall Gerhardi”), an indirect wholly-owned subsidiary of the Company and part of Lydall’s Thermal/Acoustical Metals reporting segment, has cooperated with the German Federal Cartel Office, Bundeskartellamt (“German Cartel Office”) since May 2014 in connection with an investigation related to violations of German anti-trust laws by and among certain European automotive heat shield manufacturers, including Lydall Gerhardi. In December 2016, Lydall Gerhardi agreed in principle with the German Cartel Office to pay a settlement amount of €3.3 million . The Company recorded the expense of €3.3 million (approximately $3.5 million U.S. Dollars) in December 2016. In July 2017, Lydall Gerhardi entered into a formal settlement agreement with the German Cartel Office, and remitted payment in full in August 2017 of €3.3 million (approximately $3.9 million U.S. Dollars), definitively concluding this matter. Environmental Remediation The Company has elected to remediate environmental contamination discovered prior to the closing of the Texel acquisition at a certain property in the province of Quebec, Canada (“the Property”) that was acquired by Lydall. The Company records accruals for environmental costs when such losses are probable and reasonably estimable. In 2016, the Company, through the engagement of a third-party environmental service firm, determined the final scope and timing of the remediation project and estimated the cost of the remediation project to range between $0.9 million and $1.5 million . Based upon this range of estimated remediation costs, the Company recorded an environmental liability of $0.9 million within other long-term liabilities on the Company's balance sheet at December 31, 2016. In July, 2017, the third-party environmental service firm completed its initial investigatory work and, based on information provided from the results of such work, the Company increased its environmental liability by $0.6 million at June 30, 2017. During the nine months ended September 30, 2017, the environmental liability was reduced by $0.2 million , reflecting payments made to vendors, resulting in a balance of $1.3 million at September 30, 2017. The remaining balance for the environmental liability of $1.3 million (which remains fully offset as described below) is included within other long-term liabilities on the Company's balance sheet at September 30, 2017. Pursuant to the Share Purchase Agreement, ADS has agreed to indemnify the Company from all costs and liabilities associated with the contamination and remediation work, including the costs of preparation and approval of the remediation plan and other reports in relation therewith. This indemnity was secured by an environmental escrow account, which was established in the amount of $3.0 million Canadian Dollars (approximately $2.4 million U.S. Dollars as of September 30, 2017). Should the costs and liabilities exceed the environmental escrow amount, the Company also has access to the general indemnity escrow account, which was originally established in the amount of $14.0 million Canadian Dollars (approximately $11.2 million U.S. Dollars as of September 30, 2017), and based on the Share Purchase Agreement was reduced to approximately $7.0 million Canadian Dollars (approximately $5.6 million U.S. Dollars as of September 30, 2017). Based on the foregoing, an indemnification asset of $0.9 million was also recorded in other assets at December 31, 2016 as the Company believed, and still believes collection from ADS is probable. This indemnification asset was increased by $0.6 million to reflect the most current estimate of $1.5 million at June 30, 2017. The indemnification asset was decreased by $0.2 million reflecting indemnification from ADS for payments made by the Company to its vendors during the nine months ended September 30, 2017. The resulting indemnification asset balance is $1.3 million at September 30, 2017. The accrual for remediation costs will be adjusted as further information develops, estimates change and payments to vendors are made for remediation, with an off-setting adjustment to the indemnification asset from ADS if collection is deemed probable. In the fourth quarter of 2016, as part of a groundwater discharging permitting process, water samples collected from wells and process water basins at the Company’s Rochester New Hampshire manufacturing facility, within the Performance Materials segment, showed concentrations of Perfluorinated Compounds (“PFCs”) in excess of state ambient groundwater quality standards. In January 2017, the Company received a notification from the State of New Hampshire Department of Environmental Services (“NHDES”) naming Lydall Performance Materials, Inc. a responsible party with respect to the discharge of regulated contaminants and, as such, is required to take action to investigate and remediate the impacts in accordance with standards established by the NHDES. The Company is conducting a site investigation, the scope of which has been reviewed by the NHDES, in order to assess the extent of potential soil and groundwater contamination and develop a remedial action. Based on input received from NHDES in March 2017 with regard to the scope of the site investigation, the Company recorded $0.2 million of expense in the first quarter of 2017 associated with the expected costs of conducting this site investigation. Based on additional information obtained through the results of its site investigation and correspondence with NHDES in September 2017, no additional expense was recorded in the third quarter of 2017. In the fourth quarter of 2017, the Company expects to submit its final site investigation report to the NHDES. The Company does not know the scope or extent of its future obligations, if any, that may arise from the NHDES review of the site investigation report and therefore is unable to estimate the cost of any required future corrective actions. During the nine months ended September 30, 2017, the environmental liability of $0.2 million has been reduced by $0.1 million reflecting payments made to vendors, resulting in a balance of $0.1 million at September 30, 2017. While the site investigation is nearly complete, the Company cannot assure that costs will not exceed the current estimates nor that any future corrective action at this location would not have a material effect on the Company’s financial condition, results of operations or liquidity. Provisions for such matters are charged to expense when it is probable that a liability has been incurred and reasonable estimates of the liability can be made. Estimates of environmental liabilities are based on a variety of matters, including, but not limited to, the stage of investigation, the stage of the remedial design, evaluation of existing remediation technologies, and presently enacted laws and regulations. In future periods, a number of factors could significantly impact any estimates of environmental remediation costs. |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Income (Loss) | 9 Months Ended |
Sep. 30, 2017 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Changes in Accumulated Other Comprehensive Income (Loss) | Changes in Accumulated Other Comprehensive Income (Loss) The following table discloses the changes by classification within accumulated other comprehensive income (loss) for the periods ended September 30, 2017 and 2016 : In thousands Foreign Currency Translation Adjustment Defined Benefit Pension Adjustment Gains and Losses on Cash Flow Hedges Total Accumulated Other Comprehensive (Loss) Income Balance at December 31, 2015 $ (16,920 ) $ (17,665 ) $ — $ (34,585 ) Other Comprehensive loss (2,324 ) — — (2,324 ) Amounts reclassified from accumulated other comprehensive loss — 427 (a) — 427 Balance at September 30, 2016 (19,244 ) (17,238 ) — (36,482 ) Balance at December 31, 2016 (27,885 ) (20,065 ) — (47,950 ) Other Comprehensive Income/(loss) 23,951 — (7 ) (b) 23,944 Amounts reclassified from accumulated other comprehensive loss — 516 (a) — 516 Balance at September 30, 2017 $ (3,934 ) $ (19,549 ) $ (7 ) $ (23,490 ) (a) Amount represents amortization of actuarial losses, a component of net periodic benefit cost. This amount was $0.5 million , net of $0.3 million tax benefit for the nine months ended September 30, 2017 and 2016 . (b) Amount represents unrealized losses on the fair value of hedging activities, net of taxes, for the nine months ended September 30, 2017 . |
Basis of Financial Statement 23
Basis of Financial Statement Presentation (Policies) | 9 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying Condensed Consolidated Financial Statements include the accounts of Lydall, Inc. and its subsidiaries. All financial information is unaudited for the interim periods reported. All significant intercompany transactions have been eliminated in the Condensed Consolidated Financial Statements. The Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The operating results of Texel and Gutsche have been included in the Consolidated Statements of Operations beginning on their respective dates of acquisition. As part of the acquisition of Texel, the Company acquired a fifty percent interest in a joint venture, Afitex Texel Geosynthetiques Inc., which is accounted for under the equity method of accounting. The year-end Condensed Consolidated Balance Sheet was derived from the December 31, 2016 audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America. Management believes that all adjustments, which include only normal recurring adjustments necessary for a fair statement of the Company’s condensed consolidated financial position, results of operations and cash flows for the periods reported, have been included. For further information, refer to the audited consolidated financial statements and accompanying notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016 . |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606)." The objective of this standard update is to remove inconsistent practices with regard to revenue recognition between US GAAP and IFRS. The standard intends to improve comparability of revenue recognition practices across entities, industries, jurisdictions and capital markets. ASU 2014-09 is effective for the Company’s interim and annual reporting periods beginning January 1, 2018, and is to be adopted using either a full retrospective or modified retrospective transition method with early adoption permitted for annual periods beginning after December 15, 2016. The Company anticipates adopting ASU 2014-09 under the modified retrospective transition method, with the cumulative effect of initially adopting this standard recognized through retained earnings at the date of adoption. The new standard requires new comprehensive qualitative and quantitative disclosures relating to the nature, amount, timing and uncertainty of revenue arising from contracts with customers, including significant judgments and estimates used when applying the guidance. The Company is executing a project plan that includes a phased approach to implementing ASU 2014-09. During the remainder of 2017, the Company is completing the second phase which includes conversion activities, such as establishing policies, identifying system impacts, integration of the standard update into financial reporting processes and systems, and developing an understanding of the financial impact of this standard on the Company’s consolidated financial statements, including the cumulative effect adjustment to be recorded upon implementation of this standard The Company continues to assess potential impacts to all of its segments under the new standard and has identified a potential impact to the timing of revenue recognition across all segments. The Company currently generally recognizes revenue at a point in time typically when products are shipped and risk of loss has transferred to the customer, whereas the implementation of the new standard will result in certain revenue streams moving to an over-time revenue recognition model. Under the new standard, the customized nature of some of our products combined with contractual provisions that provide us with an enforceable right to payment will likely require the Company to recognize revenue related to certain revenue streams prior to the product being shipped to the customer. The Company anticipates the transition to the new standard will result in changes to revenue recognition practices, including areas described above, but the Company will be unable to quantify that impact until the second phase of the project has been completed. Subsequent to the issuance of ASU No. 2014-09, the FASB has issued the following update; ASU No. 2016-20, “Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers”. The amendments in this update affects the guidance contained within ASU 2014-09 and will be assessed as part of the Company's revenue recognition project plan. In July 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2015-11, “Inventory” (Topic 330): Simplifying the Measurement of Inventory." This ASU requires an entity to measure inventory at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Subsequent measurement is unchanged for inventory measured using last-in, first-out (“LIFO”) or the retail inventory method. This ASU is effective for fiscal years beginning after December 15, 2016. The adoption of this ASU did not have any impact on the Company’s consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, "Leases (Topic 842)". This ASU requires entities that lease assets with lease terms of more than 12 months to recognize right-of-use assets and lease liabilities created by those leases on their balance sheets. This ASU will also require new qualitative and quantitative disclosures to help investors and other financial statement users better understand the amount, timing, and uncertainty of cash flows arising from leases. This ASU is effective for fiscal years beginning after December 15, 2018, with early adoption permitted. The Company is currently evaluating the method and impact the adoption of ASU 2016-02 will have on the Company’s consolidated financial statements and disclosures. In May 2017, the FASB issued ASU No. 2017-09, "Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting". This ASU requires an entity to apply modification accounting in Topic 718 when there are changes to the terms or conditions of a share-based payment award, unless the fair value, vesting conditions, and classification of the modified award are the same as the original award immediately before the original award is modified. This ASU is effective for fiscal years beginning after December 15, 2017, with early adoption permitted. The Company is currently evaluating the method and impact the adoption of ASU 2017-09 will have on the Company’s consolidated financial statements and disclosures. In August 2017, the FASB issued ASU No. 2017-12, "Derivatives and Hedging (Topic 815): Targeted Improvements to Account for Hedging Activities". This ASU provides various improvements revolving around the financial reporting of hedging relationships that will require an entity to amend the presentation and disclosure of hedging activities to better portray the economic results of an entity's risk management activities in its financial statements. This ASU will also require an entity with cash flow and net investment hedges existing at the date of the adoption to apply a cumulative-effect adjustment related to eliminating the separate measurement of ineffectiveness to accumulated other comprehensive income with a corresponding adjustment to the opening balance of retained earnings as of the beginning of the fiscal year that the entity adopts this ASU. This ASU is effective for fiscal years beginning after December 15, 2018, with early adoption permitted. The Company is currently evaluating the method and impact the adoption of ASU 2017-12 will have on the Company’s consolidated financial statements and disclosures. |
Derivatives | Derivatives The Company selectively uses financial instruments to manage market risk associated with exposure to fluctuations in interest rates. These financial exposures are monitored and managed by the Company as an integral part of its risk management program. The Company’s interest rate exposure is most sensitive to fluctuations in interest rates in the United States and Europe, which impact interest paid on its debt. The Company has debt with variable rates of interest based generally on LIBOR. From time to time, the Company may enter into interest rate swap agreements to manage interest rate risk. These instruments are designated as cash flow hedges and are recorded at fair value using Level 2 observable market inputs. Derivative instruments are recognized as either assets or liabilities on the balance sheet in either current or non-current other assets or other accrued liabilities or other long-term liabilities depending upon maturity and commitment. For derivative instruments that are designated and qualify as a cash flow hedge, the effective portion of the gain or loss on the derivative is reported as a component of other comprehensive income and reclassified into earnings in the same period or periods in which the hedge transaction affects earnings. Any ineffective portion, or amounts related to contracts that are not designated as hedges, are recorded directly to earnings. The Company's policy for classifying cash flows from derivatives is to report the cash flows consistent with the underlying hedged item. The Company does not use derivatives for speculative or trading purposes or to manage commodity exposures. |
Acquisitions (Tables)
Acquisitions (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table summarizes the fair values of identifiable assets acquired and liabilities assumed at the date of the acquisitions: In thousands Texel Gutsche Cash and cash equivalents $ 1,610 $ 9,400 Accounts receivable 13,355 7,736 Inventories 17,525 6,417 Prepaid expenses and other current assets 2,469 1,125 Non-current environmental indemnification receivable (Note 14) 925 — Property, plant and equipment, net 31,525 7,969 Investment in joint venture 616 — Goodwill (Note 4) 28,655 19,729 Other intangible assets, net (Note 4) 22,887 15,622 Other long term assets — 1,545 Total assets acquired $ 119,567 $ 69,543 Current liabilities $ (8,520 ) $ (8,376 ) Long-term environmental remediation liability (Note 14) (925 ) — Deferred tax liabilities (7,413 ) (470 ) Other long-term liabilities — (2,742 ) Total liabilities assumed (16,858 ) (11,588 ) Net assets acquired $ 102,709 $ 57,955 |
Schedule of Unaudited Pro Forma Operating Results | The following table reflects the actual operating results of the Company for the quarter and nine months ended September 30, 2017 and the unaudited pro forma operating results of the Company for the quarter and nine months ended September 30, 2016, which give effect to the acquisitions of Texel and Gutsche as if they had occurred on January 1, 2015. The pro forma information includes the historical financial results of the Company and the acquired businesses. The pro forma results are not necessarily indicative of the operating results that would have occurred had the acquisitions been effective January 1, 2015, nor are they intended to be indicative of results that may occur in the future. The pro forma information does not include the effects of any synergies related to the acquisitions. Quarter Ended Nine Months Ended (Actual) (Unaudited Pro Forma) (Actual) (Unaudited Pro Forma) In thousands 2017 2016 2017 2016 Net sales $ 180,041 169,126 $ 520,407 $ 499,875 Net income $ 10,675 14,206 $ 35,469 $ 37,532 Earnings per share: Basic $ 0.63 $ 0.84 $ 2.08 $ 2.23 Diluted $ 0.62 $ 0.83 $ 2.05 $ 2.20 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories as of September 30, 2017 and December 31, 2016 were as follows: In thousands September 30, December 31, Raw materials $ 32,194 $ 24,518 Work in process 26,191 17,161 Finished goods 23,984 25,360 82,369 67,039 Less: Progress billings (1,684 ) (893 ) Total inventories $ 80,685 $ 66,146 |
Goodwill and Other Intangible26
Goodwill and Other Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Changes in Carrying Amount of Goodwill by Segment | The changes in the carrying amount of goodwill by segment as of and for the quarter ended September 30, 2017 were as follows: December 31, Currency translation adjustments Additions September 30, 2017 In thousands Performance Materials $ 12,777 $ 462 $ — $ 13,239 Technical Nonwovens 50,829 4,386 323 55,538 Total goodwill $ 63,606 $ 4,848 $ 323 $ 68,777 |
Schedule of Impaired Intangible Assets | The table below presents the gross carrying amount and, as applicable, the accumulated amortization of the Company’s acquired intangible assets other than goodwill included in “Other intangible assets, net” in the Condensed Consolidated Balance Sheets as of September 30, 2017 and December 31, 2016 : September 30, 2017 December 31, 2016 In thousands Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Amortized intangible assets Customer Relationships $ 39,383 $ (3,689 ) $ 36,131 $ (1,284 ) Patents 4,443 (3,738 ) 4,028 (3,300 ) Technology 2,500 (602 ) 2,500 (477 ) Trade Names 4,275 (1,199 ) 3,912 (394 ) License Agreements 632 (632 ) 583 (583 ) Other 577 (412 ) 536 (205 ) Total amortized intangible assets $ 51,810 $ (10,272 ) $ 47,690 $ (6,243 ) |
Long-term Debt and Financing 27
Long-term Debt and Financing Arrangements (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Maturities of Long-term Debt | Total outstanding debt consists of: September 30, December 31, In thousands Effective Rate Maturity 2017 2016 Revolver Loan, due July 7, 2021 2.24 % 2021 $ 92,600 $ 126,600 Other Foreign Bank Borrowings 0.80% - 3.40% 2017 - 2024 — 1,430 Capital Leases 1.65% - 2.09% 2019 - 2020 650 745 93,250 128,775 Less portion due within one year (257 ) (634 ) Total long-term debt $ 92,993 $ 128,141 |
Derivatives (Tables)
Derivatives (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Assets at Fair Value | The following table sets forth the fair value amounts of derivative instruments held by the Company: September 30, 2017 December 31, 2016 In thousands Asset Derivatives Liability Derivatives Asset Derivatives Liability Derivatives Derivatives designated as hedging instruments: Interest rate contract $ — $ (11 ) $ — $ — Total derivatives $ — $ (11 ) $ — $ — |
Schedule of Derivative Liabilities at Fair Value | The following table sets forth the fair value amounts of derivative instruments held by the Company: September 30, 2017 December 31, 2016 In thousands Asset Derivatives Liability Derivatives Asset Derivatives Liability Derivatives Derivatives designated as hedging instruments: Interest rate contract $ — $ (11 ) $ — $ — Total derivatives $ — $ (11 ) $ — $ — |
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) | The following table sets forth the income (loss), recorded in accumulated other comprehensive income (loss), net of tax, for the quarters and nine months ended September 30, 2017 and 2016 for derivatives held by the Company and designated as hedging instruments: Quarter Ended Nine Months Ended 2017 2016 2017 2016 Cash flow hedges: Interest rate contract $ 37 $ — $ (7 ) $ — $ 37 — $ (7 ) $ — |
Equity Compensation Plans (Tabl
Equity Compensation Plans (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary Of Outstanding And Exercisable Options | The following table is a summary of outstanding and exercisable options as of September 30, 2017 : In thousands except per share amounts and years Shares Weighted- Average Exercise Price Aggregate Intrinsic Value Outstanding at September 30, 2017 393 $ 26.51 $ 12,350 Exercisable at September 30, 2017 214 $ 16.51 $ 8,700 Unvested at September 30, 2017 179 $ 38.41 $ 3,650 |
Restructuring (Tables)
Restructuring (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring and Related Costs | Actual pre-tax expenses incurred and total estimated pre-tax expenses for the restructuring program by type are as follows: In thousands Severance and Related Expenses Contract Termination Expenses Facility Exit, Move and Set-up Expenses Total Expense incurred during quarter ended: June 30, 2017 $ 74 $ 185 $ 34 $ 293 September 30, 2017 87 (49 ) 116 154 Total pre-tax expense incurred $ 161 $ 136 $ 150 $ 447 Estimated remaining expense at September 30, 2017 1,000 150 3,400 4,550 Total estimated pre-tax expense $ 1,161 $ 286 $ 3,550 $ 4,997 |
Schedule of Restructuring Reserve by Type of Cost | Accrued restructuring costs were as follows at September 30, 2017 : In thousands Total Balance as of March 31, 2017 $ — Pre-tax restructuring expenses 293 Cash paid — Balance as of June 30, 2017 $ 293 Pre-tax restructuring expenses 71 Cash paid (54 ) Balance as of September 30, 2017 $ 310 |
Employer Sponsored Benefit Pl31
Employer Sponsored Benefit Plans (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Retirement Benefits [Abstract] | |
Summary of the Components of Net Periodic Benefit Cost for the Domestic Pension Plan | The following is a summary of the components of net periodic benefit cost, which is recorded primarily within selling, product development and administrative expenses, for the domestic pension plan for the quarters and nine months ended September 30, 2017 and 2016 : Quarter Ended Nine Months Ended In thousands 2017 2016 2017 2016 Components of net periodic benefit cost Interest cost $ 514 $ 535 $ 1,543 $ 1,605 Expected return on assets (594 ) (605 ) (1,782 ) (1,815 ) Amortization of actuarial loss 273 233 819 700 Net periodic benefit cost $ 193 $ 163 $ 580 $ 490 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of Reconciliation of Weighted Average Shares Used to Determine Basic and Diluted Earnings Per Share | The following table provides a reconciliation of weighted-average shares used to determine basic and diluted earnings per share: Quarter Ended Nine Months Ended In thousands 2017 2016 2017 2016 Basic average common shares outstanding 17,055 16,888 17,028 16,859 Effect of dilutive options and restricted stock awards 212 250 242 225 Diluted average common shares outstanding 17,267 17,138 17,270 17,084 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Schedule of Consolidated Net Sales by Segment | (1) The Technical Nonwovens segment reports results of Texel and Gutsche for the period following the dates of acquisition of July 7, 2016 and December 31, 2016, respectively. (2) Included in the Technical Nonwovens segment and Eliminations and Other is $6.5 million and $4.5 million in intercompany sales to the T/A Fibers segment for the quarters ended September 30, 2017 and 2016 , respectively, and $19.5 million and $13.6 million for the nine months ended September 30, 2017 and 2016 , respectively. The tables below present net sales and operating income by segment for the quarters and nine months ended September 30, 2017 and 2016 , and also a reconciliation of total segment net sales and operating income to total consolidated net sales and operating income. Consolidated net sales by segment: Quarter Ended Nine Months Ended In thousands 2017 2016 2017 2016 Performance Materials Segment: Filtration $ 19,946 $ 18,045 $ 58,047 $ 53,861 Thermal Insulation 7,283 7,081 22,116 20,570 Life Sciences Filtration 2,318 3,705 7,436 10,749 Performance Materials Segment net sales 29,547 28,831 87,599 85,180 Technical Nonwovens Segment (1) : Industrial Filtration 38,346 25,414 108,884 67,805 Advanced Materials (2) 34,960 26,870 90,438 43,526 Technical Nonwovens net sales 73,306 52,284 199,322 111,331 Thermal/Acoustical Metals Segment: Metal parts 41,522 39,807 124,043 117,578 Tooling 8,297 4,830 13,441 14,301 Thermal/Acoustical Metals Segment net sales 49,819 44,637 137,484 131,879 Thermal/Acoustical Fibers Segment: Fiber parts 34,739 35,073 116,430 107,629 Tooling 884 1,356 4,064 4,829 Thermal/Acoustical Fibers Segment net sales 35,623 36,429 120,494 112,458 Eliminations and Other (2) (8,254 ) (6,456 ) (24,492 ) (18,188 ) Consolidated Net Sales $ 180,041 $ 155,725 $ 520,407 $ 422,660 |
Schedule of Operating Income by Segment | Operating income by segment: Quarter Ended Nine Months Ended In thousands 2017 2016 2017 2016 Performance Materials $ 3,063 $ 3,283 $ 8,516 $ 10,102 Technical Nonwovens (1) 8,589 5,662 19,792 12,807 Thermal/Acoustical Metals 1,836 5,451 7,453 13,090 Thermal/Acoustical Fibers 8,716 10,026 33,162 30,980 Corporate Office Expenses (7,043 ) (6,125 ) (18,963 ) (19,481 ) Consolidated Operating Income $ 15,161 $ 18,297 $ 49,960 $ 47,498 (1) The Technical Nonwovens segment reports results of Texel and Gutsche for the period following the dates of acquisition of July 7, 2016 and December 31, 2016, respectively. (2) Included in the Technical Nonwovens segment and Eliminations and Other is $6.5 million and $4.5 million in intercompany sales to the T/A Fibers segment for the quarters ended September 30, 2017 and 2016 , respectively, and $19.5 million and $13.6 million for the nine months ended September 30, 2017 and 2016 , respectively. |
Changes in Accumulated Other 34
Changes in Accumulated Other Comprehensive Income (Loss) (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Changes By Classification within Accumulated Other Comprehensive Income (Loss) | The following table discloses the changes by classification within accumulated other comprehensive income (loss) for the periods ended September 30, 2017 and 2016 : In thousands Foreign Currency Translation Adjustment Defined Benefit Pension Adjustment Gains and Losses on Cash Flow Hedges Total Accumulated Other Comprehensive (Loss) Income Balance at December 31, 2015 $ (16,920 ) $ (17,665 ) $ — $ (34,585 ) Other Comprehensive loss (2,324 ) — — (2,324 ) Amounts reclassified from accumulated other comprehensive loss — 427 (a) — 427 Balance at September 30, 2016 (19,244 ) (17,238 ) — (36,482 ) Balance at December 31, 2016 (27,885 ) (20,065 ) — (47,950 ) Other Comprehensive Income/(loss) 23,951 — (7 ) (b) 23,944 Amounts reclassified from accumulated other comprehensive loss — 516 (a) — 516 Balance at September 30, 2017 $ (3,934 ) $ (19,549 ) $ (7 ) $ (23,490 ) (a) Amount represents amortization of actuarial losses, a component of net periodic benefit cost. This amount was $0.5 million , net of $0.3 million tax benefit for the nine months ended September 30, 2017 and 2016 . (b) Amount represents unrealized losses on the fair value of hedging activities, net of taxes, for the nine months ended September 30, 2017 . |
Basis of Financial Statement 35
Basis of Financial Statement Presentation (Details) | Jul. 07, 2016 |
Afitex Texel Geosynthetiques, Inc. | Texel | |
New Accounting Pronouncement, Early Adoption [Line Items] | |
Interest in joint venture as part of acquisition | 50.00% |
Acquisitions - Narrative (Detai
Acquisitions - Narrative (Details) - USD ($) | Dec. 31, 2016 | Jul. 07, 2016 | Dec. 31, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Jul. 06, 2016 |
Business Acquisition [Line Items] | ||||||||
Amortization expense | $ 3,000,000 | |||||||
Fair value step-up adjustments to inventory related to acquisitions | 1,100,000 | |||||||
Net income | $ 10,675,000 | $ 12,785,000 | 35,469,000 | $ 32,767,000 | ||||
Acquisition related expenses | 100,000 | |||||||
Revolving Credit Facility | Amended Credit Facility | ||||||||
Business Acquisition [Line Items] | ||||||||
Maximum borrowing capacity | $ 175,000,000 | |||||||
Revolving Credit Facility | Amended Credit Facility | ||||||||
Business Acquisition [Line Items] | ||||||||
Maximum borrowing capacity | $ 175,000,000 | 175,000,000 | 175,000,000 | $ 100,000,000 | ||||
Gutsche | ||||||||
Business Acquisition [Line Items] | ||||||||
Percentage of voting interest acquired | 100.00% | 100.00% | ||||||
Purchase price | $ 57,600,000 | |||||||
Post closing working capital adjustment, estimated | $ 3,000,000 | |||||||
Post closing working capital adjustment | 400,000 | |||||||
Purchase price including post closing adjustment | 58,000,000 | |||||||
Purchase price borrowings | 31,600,000 | 31,600,000 | ||||||
Investment in joint venture | $ 0 | $ 0 | ||||||
Gutsche | Subsidiaries | ||||||||
Business Acquisition [Line Items] | ||||||||
Net sales of acquiree since acquisition date | 13,900,000 | 37,200,000 | ||||||
Operating income of acquiree since acquisition date | 1,200,000 | 2,100,000 | ||||||
Purchase accounting inventory fair value step-up adjustment | 100,000 | 600,000 | ||||||
Pre-tax restructuring expenses | 100,000 | |||||||
Texel | ||||||||
Business Acquisition [Line Items] | ||||||||
Percentage of voting interest acquired | 100.00% | |||||||
Purchase price borrowings | $ 85,000,000 | |||||||
Net sales of acquiree since acquisition date | 26,500,000 | 23,200,000 | 62,300,000 | 23,200,000 | ||||
Operating income of acquiree since acquisition date | 3,200,000 | 1,700,000 | 5,100,000 | 1,700,000 | ||||
Purchase accounting inventory fair value step-up adjustment | 1,600,000 | $ 500,000 | 1,600,000 | |||||
Payments to acquire business | 102,700,000 | |||||||
Investment in joint venture | $ 616,000 | |||||||
Reclassification from cost of sales | 900,000 | |||||||
Reclassification to net sales | 500,000 | |||||||
Texel | Afitex Texel Geosynthetiques, Inc. | ||||||||
Business Acquisition [Line Items] | ||||||||
Interest in joint venture as part of acquisition | 50.00% | |||||||
Investment in joint venture | $ 600,000 | |||||||
Texel Brand and Gutsche | ||||||||
Business Acquisition [Line Items] | ||||||||
Amortization expense | 1,000,000 | |||||||
Fair value step-up adjustments to inventory related to acquisitions | $ 100,000 | 1,600,000 | 1,600,000 | |||||
Amortization expense | 800,000 | 3,100,000 | ||||||
Depreciation expense | 200,000 | 1,100,000 | ||||||
Interest expense | 500,000 | |||||||
Texel Brand and Gutsche | Acquisition-related Costs | ||||||||
Business Acquisition [Line Items] | ||||||||
Net income | $ 800,000 | $ 3,200,000 |
Acquisitions - Identifiable Ass
Acquisitions - Identifiable Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 | Jul. 07, 2016 |
Business Acquisition [Line Items] | |||
Goodwill (Note 4) | $ 68,777 | $ 63,606 | |
Texel | |||
Business Acquisition [Line Items] | |||
Cash and cash equivalents | $ 1,610 | ||
Accounts receivable | 13,355 | ||
Inventories | 17,525 | ||
Prepaid expenses and other current assets | 2,469 | ||
Non-current environmental indemnification receivable (Note 14) | 925 | ||
Property, plant and equipment, net | 31,525 | ||
Investment in joint venture | 616 | ||
Goodwill (Note 4) | 28,655 | ||
Other intangible assets, net (Note 4) | 22,887 | ||
Other long term assets | 0 | ||
Total assets acquired | 119,567 | ||
Current liabilities | (8,520) | ||
Long-term environmental remediation liability (Note 14) | (925) | ||
Deferred tax liabilities | (7,413) | ||
Other long-term liabilities | 0 | ||
Total liabilities assumed | (16,858) | ||
Net assets acquired | $ 102,709 | ||
Gutsche | |||
Business Acquisition [Line Items] | |||
Cash and cash equivalents | 9,400 | ||
Accounts receivable | 7,736 | ||
Inventories | 6,417 | ||
Prepaid expenses and other current assets | 1,125 | ||
Non-current environmental indemnification receivable (Note 14) | 0 | ||
Property, plant and equipment, net | 7,969 | ||
Investment in joint venture | 0 | ||
Goodwill (Note 4) | 19,729 | ||
Other intangible assets, net (Note 4) | 15,622 | ||
Other long term assets | 1,545 | ||
Total assets acquired | 69,543 | ||
Current liabilities | (8,376) | ||
Long-term environmental remediation liability (Note 14) | 0 | ||
Deferred tax liabilities | (470) | ||
Other long-term liabilities | (2,742) | ||
Total liabilities assumed | (11,588) | ||
Net assets acquired | $ 57,955 |
Acquisitions - Unaudited Pro Fo
Acquisitions - Unaudited Pro Forma Operating Results (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Business Combinations [Abstract] | ||||
Net sales | $ 180,041 | $ 155,725 | $ 520,407 | $ 422,660 |
Net income | $ 10,675 | 12,785 | $ 35,469 | 32,767 |
(Unaudited Pro Forma) | ||||
Net sales | 169,126 | 499,875 | ||
Net income | $ 14,206 | $ 37,532 | ||
Earnings per share: | ||||
Basic (in USD per share) | $ 0.63 | $ 0.76 | $ 2.08 | $ 1.94 |
Diluted (in USD per share) | $ 0.62 | 0.75 | $ 2.05 | 1.92 |
Earnings per share: | ||||
Basic (in dollars per share) | 0.84 | 2.23 | ||
Diluted (in dollars per share) | $ 0.83 | $ 2.20 |
Inventories - Inventories (Deta
Inventories - Inventories (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Inventory, Net [Abstract] | ||
Raw materials | $ 32,194 | $ 24,518 |
Work in process | 26,191 | 17,161 |
Finished goods | 23,984 | 25,360 |
Gross inventory total | 82,369 | 67,039 |
Less: Progress billings | (1,684) | (893) |
Total inventories | $ 80,685 | $ 66,146 |
Inventories - Additional Inform
Inventories - Additional Information (Detail) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Inventory Disclosure [Abstract] | ||
Gross tooling inventory | $ 17 | $ 10.3 |
Tooling inventory net of progress billings | $ 15.4 | $ 9.4 |
Goodwill and Other Intangible41
Goodwill and Other Intangible Assets - Changes in Carrying Amount of Goodwill by Segment (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Sep. 30, 2017 |
Goodwill [Roll Forward] | ||
Beginning Balance, December 31, 2016 | $ 63,606 | |
Currency translation adjustments | 4,848 | |
Additions | 323 | |
Ending Balance, September 30, 2017 | $ 63,606 | 68,777 |
Gutsche | ||
Goodwill [Roll Forward] | ||
Beginning Balance, December 31, 2016 | 19,729 | |
Ending Balance, September 30, 2017 | 19,729 | |
Performance Materials | ||
Goodwill [Roll Forward] | ||
Beginning Balance, December 31, 2016 | 12,777 | |
Currency translation adjustments | 462 | |
Additions | 0 | |
Ending Balance, September 30, 2017 | 12,777 | 13,239 |
Technical Nonwovens | ||
Goodwill [Roll Forward] | ||
Beginning Balance, December 31, 2016 | 50,829 | |
Currency translation adjustments | 4,386 | |
Additions | 323 | |
Ending Balance, September 30, 2017 | 50,829 | $ 55,538 |
Technical Nonwovens | Gutsche | ||
Goodwill [Roll Forward] | ||
Additional goodwill as a result of final post-closing adjustment | $ 300 |
Goodwill and Other Intangible42
Goodwill and Other Intangible Assets - Amortization of the Company's Acquired Intangible Assets other than Goodwill (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Amortized intangible assets | ||
Gross Carrying Amount | $ 51,810 | $ 47,690 |
Accumulated Amortization | (10,272) | (6,243) |
Customer Relationships | ||
Amortized intangible assets | ||
Gross Carrying Amount | 39,383 | 36,131 |
Accumulated Amortization | (3,689) | (1,284) |
Patents | ||
Amortized intangible assets | ||
Gross Carrying Amount | 4,443 | 4,028 |
Accumulated Amortization | (3,738) | (3,300) |
Technology | ||
Amortized intangible assets | ||
Gross Carrying Amount | 2,500 | 2,500 |
Accumulated Amortization | (602) | (477) |
Trade Names | ||
Amortized intangible assets | ||
Gross Carrying Amount | 4,275 | 3,912 |
Accumulated Amortization | (1,199) | (394) |
License Agreements | ||
Amortized intangible assets | ||
Gross Carrying Amount | 632 | 583 |
Accumulated Amortization | (632) | (583) |
Other | ||
Amortized intangible assets | ||
Gross Carrying Amount | 577 | 536 |
Accumulated Amortization | $ (412) | $ (205) |
Long-term Debt and Financing 43
Long-term Debt and Financing Arrangements - Additional Information (Detail) | Jul. 07, 2016USD ($) | Apr. 30, 2017USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2017USD ($) | Dec. 31, 2016 | Jul. 06, 2016USD ($) |
Debt Instrument [Line Items] | ||||||
Debt, weighted average interest rate percentage | 2.10% | 2.10% | 1.40% | |||
Interest Rate Swap | ||||||
Debt Instrument [Line Items] | ||||||
Derivative agreement term | 3 years | |||||
Derivative notional amount | $ 60,000,000 | |||||
Derivative, fixed rate | 1.58% | |||||
Quarterly reduction to notional amount | $ 5,000,000 | |||||
Amended Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Standby letters of credit, outstanding | 4,000,000 | $ 4,000,000 | ||||
Revolving Credit Facility | Amended Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | $ 175,000,000 | $ 175,000,000 | $ 175,000,000 | $ 100,000,000 | ||
Maximum borrowing capacity possible value of increase (not to exceed) | $ 50,000,000 | |||||
Credit facility fixed charge coverage ratio (not less than) | 2 | |||||
Required consolidated leverage ratio as of end of each fiscal quarter (no greater than) | 3 | 3 | ||||
Minimum required Consolidated EBITDA for preceding 12 month period | $ 30,000,000 | |||||
Line of credit facility, remaining borrowing capacity | $ 78,400,000 | 78,400,000 | ||||
Borrowings outstanding | 92,600,000 | $ 92,600,000 | ||||
Revolving Credit Facility | Amended Credit Facility | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Quarterly commitment fee percentage | 0.175% | |||||
Revolving Credit Facility | Amended Credit Facility | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Quarterly commitment fee percentage | 0.30% | |||||
Revolving Credit Facility | Amended Credit Facility | Base Rate | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 0.15% | |||||
Revolving Credit Facility | Amended Credit Facility | Base Rate | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 1.00% | |||||
Revolving Credit Facility | Amended Credit Facility | Federal Funds Effective Swap Rate | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 0.50% | |||||
Revolving Credit Facility | Amended Credit Facility | Eurocurrency Rate | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 1.00% | |||||
Revolving Credit Facility | Amended Credit Facility | Eurocurrency Rate | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 0.75% | |||||
Revolving Credit Facility | Amended Credit Facility | Eurocurrency Rate | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 1.75% | |||||
Foreign Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit facility, remaining borrowing capacity | 11,600,000 | $ 11,600,000 | ||||
Borrowings outstanding | 100,000 | 100,000 | ||||
Standby letters of credit, outstanding | $ 3,000,000 | $ 3,000,000 | ||||
Foreign Credit Facility | Other Foreign Bank Borrowings | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, interest rate, effective percentage | 0.80% | 0.80% | ||||
Foreign Credit Facility | Other Foreign Bank Borrowings | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, interest rate, effective percentage | 3.40% | 3.40% | ||||
Capital Leases | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, interest rate, effective percentage | 1.65% | 1.65% | ||||
Capital Leases | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, interest rate, effective percentage | 2.09% | 2.09% |
Long-term Debt and Financing 44
Long-term Debt and Financing Arrangements - Schedule of Maturities of Long-term Debt (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||
Long-term debt | $ 93,250 | $ 128,775 |
Less portion due within one year | (257) | (634) |
Long-term Debt | 92,993 | 128,141 |
Foreign Credit Facility | Other Foreign Bank Borrowings | ||
Debt Instrument [Line Items] | ||
Long-term debt | 0 | 1,430 |
Capital Leases | Capital Leases | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 650 | 745 |
Revolving Credit Facility | Revolver Loan, due July 7, 2021 | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate, effective percentage | 2.24% | |
Long-term debt | $ 92,600 | $ 126,600 |
Derivatives - Additional Inform
Derivatives - Additional Information (Details) - Interest Rate Swap - USD ($) | 1 Months Ended | 3 Months Ended |
Apr. 30, 2017 | Sep. 30, 2017 | |
Derivative [Line Items] | ||
Derivative agreement term | 3 years | |
Derivative notional amount | $ 60,000,000 | |
Derivative, fixed rate | 1.58% | |
Quarterly reduction to notional amount | $ 5,000,000 |
Derivatives - Fair Value Amount
Derivatives - Fair Value Amounts of Derivative Instruments (Details) - Derivatives designated as hedging instruments - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | $ 0 | $ 0 |
Liability Derivatives | (11) | 0 |
Interest rate contract | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 0 | 0 |
Liability Derivatives | $ (11) | $ 0 |
Derivatives - Loss Recorded in
Derivatives - Loss Recorded in Accumulated Other Comprehensive Income (Loss) (Details) - Derivatives designated as hedging instruments - Cash flow hedges - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) recognized in other comprehensive income | $ 37 | $ 0 | $ (7) | $ 0 |
Interest rate contract | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) recognized in other comprehensive income | $ 37 | $ 0 | $ (7) | $ 0 |
Equity Compensation Plans - Add
Equity Compensation Plans - Additional Information (Detail) - USD ($) | Apr. 27, 2012 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock based compensation expense | $ 1,000,000 | $ 1,000,000 | $ 3,200,000 | $ 3,100,000 | |
Equity compensation costs capitalized as part of inventory | $ 0 | ||||
Stock options granted (shares) | 0 | 0 | 0 | 18,300 | |
Stock options exercised (shares) | 6,170 | 18,863 | 34,634 | 46,502 | |
Cash received from exercise of stock option | $ 100,000 | $ 200,000 | $ 400,000 | $ 600,000 | |
Number of options exercised, intrinsic value | 200,000 | 700,000 | 1,400,000 | 1,300,000 | |
Intrinsic value of stock options exercised, tax benefit | 100,000 | $ 200,000 | $ 400,000 | $ 300,000 | |
Employee Stock Option | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award, term | 10 years | ||||
Total unrecognized compensation cost | 1,800,000 | $ 1,800,000 | |||
Weighted average expected amortization period | 2 years 7 months 10 days | ||||
Employee Stock Option | Minimum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award, vesting period | 3 years | ||||
Employee Stock Option | Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award, vesting period | 4 years | ||||
Restricted Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Total unrecognized compensation cost | $ 3,700,000 | $ 3,700,000 | |||
Weighted average expected amortization period | 1 year 9 months 18 days | ||||
Unvested restricted stock awards (shares) | 187,620 | 187,620 | |||
Time Based Restricted Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Restricted shares granted (shares) | 0 | 8,570 | 0 | 16,500 | |
Restricted shares vested (shares) | 6,000 | 6,000 | 15,288 | 14,129 | |
Time Based Restricted Stock | Minimum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award, vesting period | 2 years | ||||
Time Based Restricted Stock | Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award, vesting period | 4 years | ||||
Performance Based Restricted Stock Awards | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Restricted shares granted (shares) | 0 | 0 | 7,380 | ||
Restricted shares vested (shares) | 0 | 0 | 108,600 | 65,087 | |
Performance Based Restricted Stock Awards | Earnings Target in 2019 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Restricted shares granted (shares) | 18,100 | ||||
Stock Option Plan 2012 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share options and restricted shares authorized (shares) | 1,750,000 | ||||
Additional shares authorized under the plan (shares) | 1,200,000 |
Equity Compensation Plans - Opt
Equity Compensation Plans - Options (Detail) $ / shares in Units, shares in Thousands, $ in Thousands | Sep. 30, 2017USD ($)$ / sharesshares |
Shares | |
Outstanding (shares) | shares | 393 |
Exercisable (shares) | shares | 214 |
Unvested (shares) | shares | 179 |
Weighted- Average Exercise Price | |
Outstanding (in dollars per share) | $ / shares | $ 26.51 |
Exercisable (in dollars per share) | $ / shares | 16.51 |
Unvested (in dollars per share) | $ / shares | $ 38.41 |
Aggregate Intrinsic Value | |
Outstanding | $ | $ 12,350 |
Exercisable | $ | 8,700 |
Unvested | $ | $ 3,650 |
Stock Repurchases (Details)
Stock Repurchases (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2017USD ($)shares | |
Equity [Abstract] | |
Stock repurchased during period (shares) | shares | 44,352 |
Aggregate purchase price of shares repurchased | $ | $ 2.6 |
Restructuring - Additional Info
Restructuring - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Dec. 31, 2017 | Sep. 30, 2017 | Apr. 30, 2017 | |
Restructuring Cost and Reserve [Line Items] | ||||||
Cash paid | $ 100 | |||||
Technical Nonwovens | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Estimated pre-tax restructuring expense | 4,997 | $ 4,997 | ||||
Restructuring, expected costs resulting in future cash expenditures | $ 4,800 | |||||
Cash paid | (54) | $ 0 | 100 | |||
Pre-tax restructuring expenses | $ 71 | $ 293 | 400 | |||
Technical Nonwovens | Forecast | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Cash paid | $ 3,500 | |||||
Pre-tax restructuring expenses | $ 700 | |||||
Technical Nonwovens | Selling, Product Development and Administrative Expenses | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Pre-tax restructuring expenses | $ 200 |
Restructuring - Actual and Esti
Restructuring - Actual and Estimated Pre-tax Expenses (Details) - Technical Nonwovens - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Sep. 30, 2017 | Jun. 30, 2017 | Sep. 30, 2017 | |
Restructuring Cost and Reserve [Line Items] | |||
Total pre-tax expense incurred | $ 154 | $ 293 | $ 447 |
Estimated remaining expense at September 30, 2017 | 4,550 | 4,550 | |
Total estimated pre-tax expense | 4,997 | 4,997 | |
Severance and Related Expenses | |||
Restructuring Cost and Reserve [Line Items] | |||
Total pre-tax expense incurred | 87 | 74 | 161 |
Estimated remaining expense at September 30, 2017 | 1,000 | 1,000 | |
Total estimated pre-tax expense | 1,161 | 1,161 | |
Contract Termination Expenses | |||
Restructuring Cost and Reserve [Line Items] | |||
Total pre-tax expense incurred | (49) | 185 | 136 |
Estimated remaining expense at September 30, 2017 | 150 | 150 | |
Total estimated pre-tax expense | 286 | 286 | |
Facility Exit, Move and Set-up Expenses | |||
Restructuring Cost and Reserve [Line Items] | |||
Total pre-tax expense incurred | 116 | $ 34 | 150 |
Estimated remaining expense at September 30, 2017 | 3,400 | 3,400 | |
Total estimated pre-tax expense | $ 3,550 | $ 3,550 |
Restructuring - Accrued Restruc
Restructuring - Accrued Restructuring Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2017 | Jun. 30, 2017 | Sep. 30, 2017 | |
Restructuring Reserve [Roll Forward] | |||
Cash paid | $ 100 | ||
Technical Nonwovens | |||
Restructuring Reserve [Roll Forward] | |||
Balance | 293 | $ 0 | |
Pre-tax restructuring expenses | 71 | 293 | $ 400 |
Cash paid | (54) | 0 | 100 |
Balance | $ 310 | $ 293 | $ 310 |
Employer Sponsored Benefit Pl54
Employer Sponsored Benefit Plans - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Retirement Benefits [Abstract] | ||||
Contributions made by company to domestic pension plan | $ 1.2 | $ 3.6 | $ 3.6 | $ 3.6 |
Employer Sponsored Benefit Pl55
Employer Sponsored Benefit Plans - Components of Net Periodic Benefit Cost (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Components of net periodic benefit cost | ||||
Interest cost | $ 514 | $ 535 | $ 1,543 | $ 1,605 |
Expected return on assets | (594) | (605) | (1,782) | (1,815) |
Amortization of actuarial loss | 273 | 233 | 819 | 700 |
Net periodic benefit cost | $ 193 | $ 163 | $ 580 | $ 490 |
Income Taxes (Detail)
Income Taxes (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | ||||
Effective tax rate for income from continuing operations (as a percent) | 24.20% | 29.70% | 24.00% | 31.50% |
Tax settlement, amount | $ 1.4 | |||
Foreign earnings repatriated | $ 0.4 | |||
Tax benefits from stock compensation | $ 1.7 | $ 0.4 |
Earnings Per Share - Summary (D
Earnings Per Share - Summary (Detail) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Earnings Per Share [Abstract] | ||||
Basic average common shares outstanding | 17,055 | 16,888 | 17,028 | 16,859 |
Effect of dilutive options and restricted stock awards (shares) | 212 | 250 | 242 | 225 |
Diluted average common shares outstanding | 17,267 | 17,138 | 17,270 | 17,084 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Earnings Per Share [Abstract] | ||||
Shares excluded from computation of diluted earnings per share (shares) | 38,280 | 91,900 | 38,280 | 96,455 |
Segment Information - Consolida
Segment Information - Consolidated Net Sales by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||
Net sales | $ 180,041 | $ 155,725 | $ 520,407 | $ 422,660 | |
Operating Segments | Performance Materials | |||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||
Net sales | 29,547 | 28,831 | 87,599 | 85,180 | |
Operating Segments | Performance Materials | Filtration | |||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||
Net sales | 19,946 | 18,045 | 58,047 | 53,861 | |
Operating Segments | Performance Materials | Thermal Insulation | |||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||
Net sales | 7,283 | 7,081 | 22,116 | 20,570 | |
Operating Segments | Performance Materials | Life Sciences Filtration | |||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||
Net sales | 2,318 | 3,705 | 7,436 | 10,749 | |
Operating Segments | Technical Nonwovens | |||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||
Net sales | [1] | 73,306 | 52,284 | 199,322 | 111,331 |
Operating Segments | Technical Nonwovens | Industrial Filtration | |||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||
Net sales | [1] | 38,346 | 25,414 | 108,884 | 67,805 |
Operating Segments | Technical Nonwovens | Advanced Materials | |||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||
Net sales | [1],[2] | 34,960 | 26,870 | 90,438 | 43,526 |
Operating Segments | Thermal/Acoustical Metals | |||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||
Net sales | 49,819 | 44,637 | 137,484 | 131,879 | |
Operating Segments | Thermal/Acoustical Metals | Metal parts | |||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||
Net sales | 41,522 | 39,807 | 124,043 | 117,578 | |
Operating Segments | Thermal/Acoustical Metals | Tooling | |||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||
Net sales | 8,297 | 4,830 | 13,441 | 14,301 | |
Operating Segments | Thermal/Acoustical Fibers | |||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||
Net sales | 35,623 | 36,429 | 120,494 | 112,458 | |
Operating Segments | Thermal/Acoustical Fibers | Fiber parts | |||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||
Net sales | 34,739 | 35,073 | 116,430 | 107,629 | |
Operating Segments | Thermal/Acoustical Fibers | Tooling | |||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||
Net sales | 884 | 1,356 | 4,064 | 4,829 | |
Eliminations and Other | |||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||
Net sales | [2] | $ (8,254) | $ (6,456) | $ (24,492) | $ (18,188) |
[1] | The Technical Nonwovens segment reports results of Texel and Gutsche for the period following the dates of acquisition of July 7, 2016 and December 31, 2016, respectively. | ||||
[2] | Included in the Technical Nonwovens segment and Eliminations and Other is $6.5 million and $4.5 million in intercompany sales to the T/A Fibers segment for the quarters ended September 30, 2017 and 2016, respectively, and $19.5 million and $13.6 million for the nine months ended September 30, 2017 and 2016, respectively. |
Segment Information - Operating
Segment Information - Operating Income by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||
Consolidated Operating Income | $ 15,161 | $ 18,297 | $ 49,960 | $ 47,498 | |
Operating Segments | Performance Materials | |||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||
Consolidated Operating Income | 3,063 | 3,283 | 8,516 | 10,102 | |
Operating Segments | Technical Nonwovens | |||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||
Consolidated Operating Income | [1] | 8,589 | 5,662 | 19,792 | 12,807 |
Operating Segments | Thermal/Acoustical Metals | |||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||
Consolidated Operating Income | 1,836 | 5,451 | 7,453 | 13,090 | |
Operating Segments | Thermal/Acoustical Fibers | |||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||
Consolidated Operating Income | 8,716 | 10,026 | 33,162 | 30,980 | |
Corporate Office Expenses | |||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||
Consolidated Operating Income | $ (7,043) | $ (6,125) | $ (18,963) | $ (19,481) | |
[1] | The Technical Nonwovens segment reports results of Texel and Gutsche for the period following the dates of acquisition of July 7, 2016 and December 31, 2016, respectively. |
Segment Information - Narrative
Segment Information - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Technical Nonwovens | ||||
Segment Reporting Information [Line Items] | ||||
Intercompany revenue | $ 6.5 | $ 4.5 | $ 19.5 | $ 13.6 |
Commitments and Contingencies (
Commitments and Contingencies (Details) € in Millions, CAD in Millions, $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | 9 Months Ended | |||||
Aug. 31, 2017EUR (€) | Aug. 31, 2017USD ($) | Dec. 31, 2016EUR (€) | Dec. 31, 2016USD ($) | Mar. 31, 2017USD ($) | Jun. 30, 2017USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2017CAD | Jul. 07, 2016USD ($) | |
Rochester, New Hampshire | |||||||||
Loss Contingencies [Line Items] | |||||||||
Expense associated with expected costs of site investigation | $ 0.2 | ||||||||
Rochester, New Hampshire | Environmental Contamination | |||||||||
Loss Contingencies [Line Items] | |||||||||
Accrual for environmental liability | $ 0.1 | ||||||||
Reduction to accrual for environmental liability, payments | 0.1 | ||||||||
Accrual for environmental liability, including revision (fully offset) | 0.2 | ||||||||
Texel | Quebec, Canada | |||||||||
Loss Contingencies [Line Items] | |||||||||
Indemnification assets, minimum estimated outcome | $ 0.9 | ||||||||
Indemnification assets, maximum estimated outcome | $ 1.5 | ||||||||
Environment remediation indemnity secured by environmental escrow account | 2.4 | CAD 3 | |||||||
Environmental remediation indemnity secured by general escrow account | 11.2 | 14 | |||||||
Environmental remediation indemnity secured by general escrow account, reduced amount after share purchase agreement | 5.6 | CAD 7 | |||||||
Texel | Quebec, Canada | Environmental Contamination | |||||||||
Loss Contingencies [Line Items] | |||||||||
Accrual for environmental liability | $ 0.9 | 1.3 | |||||||
Accrual for environmental liability, revision of estimate | $ 0.6 | ||||||||
Reduction to accrual for environmental liability, payments | 0.2 | ||||||||
Accrual for environmental liability, including revision (fully offset) | $ 1.5 | $ 1.3 | |||||||
Lydall Gerhardi | German Federal Cartel Office, Bundeskartellamt | |||||||||
Loss Contingencies [Line Items] | |||||||||
Litigation settlement amount awarded to other party | € 3.3 | $ 3.9 | € 3.3 | ||||||
Litigation settlement expense | € 3.3 | $ 3.5 |
Changes in Accumulated Other 63
Changes in Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | $ 273,456 | |||
Other Comprehensive loss | 23,944 | $ (2,324) | ||
Amounts reclassified from accumulated other comprehensive loss | 516 | 427 | ||
Ending balance | 334,336 | |||
Loss reclassified from AOCI for defined benefit pension plans | 500 | 500 | ||
Tax benefit reclassified from AOCI for defined benefit pension plans | 300 | 300 | ||
Total Accumulated Other Comprehensive (Loss) Income | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | (47,950) | (34,585) | ||
Ending balance | (23,490) | (36,482) | ||
Foreign Currency Translation Adjustment | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | (27,885) | (16,920) | ||
Other Comprehensive loss | 23,951 | (2,324) | ||
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 | ||
Ending balance | (3,934) | (19,244) | ||
Defined Benefit Pension Adjustment | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | (20,065) | (17,665) | ||
Other Comprehensive loss | 0 | 0 | ||
Amounts reclassified from accumulated other comprehensive loss | [1] | 516 | 427 | |
Ending balance | (19,549) | (17,238) | ||
Gains and Losses on Cash Flow Hedges | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | 0 | 0 | ||
Other Comprehensive loss | (7) | [2] | 0 | |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 | ||
Ending balance | $ (7) | $ 0 | ||
[1] | Amount represents amortization of actuarial losses, a component of net periodic benefit cost. This amount was $0.5 million, net of $0.3 million tax benefit for the nine months ended September 30, 2017 and 2016. | |||
[2] | Amount represents unrealized losses on the fair value of hedging activities, net of taxes, for the nine months ended September 30, 2017. |