Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2018 | Apr. 16, 2018 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | LDL | |
Entity Common Stock, Shares Outstanding | 17,374,320 | |
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 | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Income Statement [Abstract] | ||
Net sales | $ 191,660 | $ 165,487 |
Cost of sales | 152,153 | 124,989 |
Gross profit | 39,507 | 40,498 |
Selling, product development and administrative expenses | 25,471 | 25,350 |
Operating income | 14,036 | 15,148 |
Interest expense | 540 | 606 |
Other expense, net | 315 | 333 |
Income before income taxes | 13,181 | 14,209 |
Income tax expense | 2,123 | 2,494 |
Loss from equity method investment | 4 | 46 |
Net income | $ 11,054 | $ 11,669 |
Earnings per share: | ||
Basic (USD per share) | $ 0.64 | $ 0.69 |
Diluted (USD per share) | $ 0.64 | $ 0.68 |
Weighted average number of common shares outstanding: | ||
Basic (shares) | 17,164 | 16,983 |
Diluted (shares) | 17,339 | 17,284 |
CONDENSED CONSOLIDATED STATEME3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 11,054 | $ 11,669 |
Other comprehensive income: | ||
Foreign currency translation adjustments | 2,545 | 2,729 |
Pension liability adjustment, net of tax | 198 | 172 |
Unrealized gain on hedging activities, net of tax | 102 | 0 |
Comprehensive income | $ 13,899 | $ 14,570 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 49,103 | $ 59,875 |
Accounts receivable, less allowances (2018 - $1,463; 2017 - $1,507) | 136,078 | 116,712 |
Contract assets | 25,005 | 0 |
Inventories | 74,263 | 80,339 |
Taxes receivable | 5,263 | 5,525 |
Prepaid expenses | 4,016 | 4,858 |
Other current assets | 6,765 | 6,186 |
Total current assets | 300,493 | 273,495 |
Property, plant and equipment, at cost | 405,428 | 397,152 |
Accumulated depreciation | (234,699) | (226,820) |
Net, property, plant and equipment | 170,729 | 170,332 |
Goodwill | 68,958 | 68,969 |
Other intangible assets, net | 39,031 | 40,543 |
Other assets, net | 7,131 | 7,532 |
Total assets | 586,342 | 560,871 |
Current liabilities: | ||
Current portion of long-term debt | 283 | 277 |
Accounts payable | 80,405 | 71,931 |
Accrued payroll and other compensation | 13,678 | 15,978 |
Accrued taxes | 3,162 | 2,230 |
Other accrued liabilities | 14,470 | 11,690 |
Total current liabilities | 111,998 | 102,106 |
Long-term debt | 76,862 | 76,913 |
Deferred tax liabilities | 15,542 | 14,714 |
Benefit plan liabilities | 8,489 | 9,743 |
Other long-term liabilities | 3,618 | 3,999 |
Commitments and Contingencies (Note 14) | ||
Stockholders’ equity: | ||
Preferred stock | 0 | 0 |
Common stock | 251 | 250 |
Capital in excess of par value | 89,768 | 88,006 |
Retained earnings | 387,435 | 374,783 |
Accumulated other comprehensive loss | (17,303) | (20,148) |
Treasury stock, at cost | (90,318) | (89,495) |
Total stockholders’ equity | 369,833 | 353,396 |
Total liabilities and stockholders’ equity | $ 586,342 | $ 560,871 |
CONDENSED CONSOLIDATED BALANCE5
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
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 | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Cash flows from operating activities: | ||
Net income | $ 11,054 | $ 11,669 |
Adjustments to reconcile net income to net cash (used for) provided by operating activities: | ||
Depreciation and amortization | 7,220 | 6,517 |
Long-lived asset impairment charge | 0 | 772 |
Inventory step-up amortization | 0 | 481 |
Deferred income taxes | 601 | 185 |
Stock-based compensation | 1,201 | 1,231 |
Loss from equity method investment | 4 | 46 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (18,626) | (7,780) |
Contract assets | (5,745) | 0 |
Inventories | (8,796) | (12,015) |
Accounts payable | 9,471 | 13,686 |
Accrued payroll and other compensation | (2,432) | (1,154) |
Accrued taxes | 877 | 574 |
Other, net | 1,209 | (1,854) |
Net cash (used for) provided by operating activities | (3,962) | 12,358 |
Cash flows from investing activities: | ||
Capital expenditures | (7,676) | (9,560) |
Net cash used for investing activities | (7,676) | (9,560) |
Cash flows from financing activities: | ||
Debt repayments | (57) | (10,467) |
Common stock issued | 666 | 155 |
Common stock repurchased | (823) | (2,497) |
Net cash used for financing activities | (214) | (12,809) |
Effect of exchange rate changes on cash | 1,080 | 616 |
Decrease in cash and cash equivalents | (10,772) | (9,395) |
Cash and cash equivalents at beginning of period | 59,875 | 71,934 |
Cash and cash equivalents at end of period | $ 49,103 | $ 62,539 |
CONDENSED CONSOLIDATED STATEME7
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Statement of Cash Flows [Abstract] | ||
Non-cash capital expenditures incurred but not yet paid | $ 4.2 | $ 4.1 |
CONDENSED CONSOLIDATED STATEME8
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Unaudited) - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Capital in Excess of Par Value | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock |
Balance at beginning of period at Dec. 31, 2016 | $ (47,950) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | $ 11,669 | |||||
Balance at end of period at Mar. 31, 2017 | (45,049) | |||||
Balance at beginning of period (shares) at Dec. 31, 2017 | 25,018 | |||||
Balance at beginning of period at Dec. 31, 2017 | 353,396 | $ 250 | $ 88,006 | $ 374,783 | (20,148) | $ (89,495) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 11,054 | 11,054 | ||||
Other comprehensive income, net of tax | 2,845 | 2,845 | ||||
Stock repurchased | (823) | (823) | ||||
Stock issued under employee plans (shares) | 50 | |||||
Stock issued under employee plans | 667 | $ 1 | 666 | |||
Stock-based compensation expense | 1,096 | 1,096 | ||||
Balance at end of period (shares) at Mar. 31, 2018 | 25,068 | |||||
Balance at end of period at Mar. 31, 2018 | 369,833 | $ 251 | $ 89,768 | 387,435 | $ (17,303) | $ (90,318) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Adoption of ASC 606 | $ 1,598 | $ 1,598 |
Basis of Financial Statement Pr
Basis of Financial Statement Presentation | 3 Months Ended |
Mar. 31, 2018 | |
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. 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 year-end Condensed Consolidated Balance Sheet was derived from the December 31, 2017 audited financial statements, but does not include all disclosures required by U.S. GAAP. 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, 2017 . Effective January 1, 2018, the Company combined 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. Refer to Note 13 "Segment Information" for further information. Prior period segment amounts throughout the Notes to the Condensed Consolidated Financial Statements have been recast to reflect the new segment structure. The recast of historical business segment information had no impact on the Company’s consolidated financial results. Effective January 1, 2018 the Company adopted the requirements of Accounting Standards Update ("ASU") No. 2014-09 (“ASC 606”) using the modified retrospective method. Therefore, the comparative information has not been adjusted and continues to be reported under the prior guidance of ASC 605. The details of the significant changes and quantitative impact of the changes are disclosed in Note 2 “Revenue from Contracts with Customers.” Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board ("FASB") issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606)”. The amended guidance establishes a single comprehensive model for companies to use in accounting for revenue arising from contracts with customers and will supersede most of the existing revenue recognition guidance, including industry-specific guidance. The amended guidance clarifies that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In applying the amended guidance, an entity will (1) identify the contract(s) with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the contract’s performance obligations; and (5) recognize revenue when (or as) the entity satisfies a performance obligation. ASC 606 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. The Company adopted the amended guidance and all related amendments using the modified retrospective approach on January 1, 2018, at which time it became effective for the Company. The Company recognized the cumulative effect of initially applying the new revenue standard to all contracts that were not completed on the date of adoption as an adjustment to the opening balance of retained earnings. (See Note 2. “Revenue from Contracts with Customers”). At the adoption date, the cumulative impact of revenue that would have been recognized over time, was $19.6 million . The impact was primarily driven by tooling net sales of $16.3 million from customer contracts within the Thermal Acoustical Solutions ("TAS") segment. The related adoption impact to retained earnings was $1.6 million , net of tax. The impact to net sales and net income as a result of applying ASC 606 was an increase of $6.3 million and $0.2 million , respectively, for the quarter ended March 31, 2018. In January 2016, the FASB issued ASU No. 2016-01, "Financial Instruments - Overall" (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities". This ASU revises an entity’s accounting related to (1) the classification and measurement of investments in equity securities and (2) the presentation of certain fair value changes for financial liabilities measured at fair value. It also amends certain disclosure requirements associated with the fair value of financial instruments. This ASU is effective for fiscal years beginning after December 15, 2017. In February 2018, the FASB issued ASU 2018-03, "Technical Corrections and Improvements to Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities", which clarifies various aspects of the guidance issued in ASU 2016-01. The adoption of these amendments is not required for public business entities with fiscal years beginning between December 15, 2017 and June 15, 2018 until the interim period beginning after June 15, 2018, however early adoption is permitted. The Company adopted both ASUs effective January 1, 2018. The adoption of these ASUs did not have any impact on the Company’s consolidated financial statements and disclosures. In August 2016, the FASB issued ASU No. 2016-15, "Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments", which provides guidance on eight specific cash flow classification issues. Prior to this ASU, GAAP did not include specific guidance on these eight cash flow classification issues. This ASU is effective for fiscal years beginning after December 15, 2017, with early adoption permitted. The adoption of this ASU did not have any impact on the Company’s consolidated financial statements and disclosures. In October 2016, the FASB issued ASU 2016-16, “Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory” as part of the Board’s initiative to reduce complexity in accounting standards. This ASU eliminates an exception in ASC 740, which prohibits the immediate recognition of income tax consequences of intra-entity asset transfers other than inventory. This ASU requires entities to recognize the immediate current and deferred income tax effects of intra-entity asset transfers. This ASU is effective for fiscal years beginning after December 15, 2017, with early adoption permitted. The adoption of this ASU did not have any impact on the Company’s consolidated financial statements and disclosures. In November 2016, the FASB issued ASU No. 2016-18, "Statement of Cash Flows (Topic 230): Restricted Cash", which clarifies guidance and presentation related to restricted cash in the statement of cash flows, including stating that restricted cash should be included within cash and cash equivalents on the statement of cash flows. The ASU was effective for fiscal years beginning after December 15, 2017, with early adoption permitted. The Company adopted this ASU effective January 1, 2018. The adoption of this ASU did not have any impact on the Company’s consolidated financial statements and disclosures. In January 2017, the FASB issued ASU No. 2017-01, "Business Combinations (Topic 805): Clarifying the Definition of a Business", which adds guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The definition of a business affects many areas of accounting including acquisitions, disposals, goodwill, and consolidation. The amendments of this ASU provide a screen to determine when an integrated set of assets and activities is not a business. This ASU was effective for fiscal years beginning after December 15, 2017. The adoption of this ASU did not have any impact on the Company’s consolidated financial statements and disclosures. In March 2017, the FASB issued ASU No. 2017-07, "Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost". This ASU requires an entity to report the service cost component of net benefit costs in the same line item(s) as other compensation costs arising from services rendered by the pertinent employees during the period. This ASU also requires the other components of net benefit cost, which includes interest costs and actual return on plan assets to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations. This ASU was effective for fiscal year beginning after December 15, 2017. As required for retrospective adoption, the Company reclassified net benefit costs of $0.1 million from cost of sales and $0.1 million from the selling, product development and administrative expenses to other expense, net, in the Consolidated Statement of Operations for the quarter ended March 31, 2017. The adoption of this ASU had minimal impact on the Company's consolidated financial statements and disclosures for the quarter ended March 31, 2018. 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 was effective for fiscal years beginning after December 15, 2017. The adoption of this ASU did not have any impact on the Company’s consolidated financial statements and disclosures. 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 developing a plan to evaluate the method and impact the adoption of ASU 2016-02 will have on the Company’s consolidated financial statements and disclosures. Significant Accounting Policies The Company’s significant accounting policies are detailed in Note 1 “Significant Accounting Policies” within Part IV Item 15 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2017. Significant changes to these accounting policies as a result of adopting ASC 606 “Revenue from Contracts with Customers” are discussed within Note 2, “Revenue from Contracts with Customers.” |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 3 Months Ended |
Mar. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | Revenue from Contracts with Customers The Company accounts for revenue in accordance with ASC 606, Revenue from Contracts from Customers. These revenues are generated from the design and manufacture of specialty engineered filtration media, industrial thermal insulating solutions, automotive thermal and acoustical barriers for filtration/separation and thermal/acoustical applications. The Company’s revenue recognition policies require the Company to make significant judgments and estimates. In applying the Company’s revenue recognition policy, determinations must be made as to when control of products passes to the Company’s customers which can be either at a point in time or over time. Revenue is generally recognized at a point in time when control passes to customers upon shipment of the Company’s products and revenue is generally recognized over time when control of the Company’s products transfers to customers during the manufacturing process (see description below). The Company analyzes several factors, including but not limited to, the nature of the products being sold and contractual terms and conditions in contracts with customers to help the Company make such judgments about revenue recognition. The Company accounts for revenue from contracts with customers when there is approval and commitment from both parties, the rights of the parties are identified, payment terms are identified, the contract has commercial substance and collectability of consideration is probable. Revenue is primarily derived from customer purchase orders, master sales agreements, and negotiated contracts, all of which represent contracts with customers. The Company next identifies the performance obligations in the contract. A performance obligation is a promise to provide distinct goods or services. Performance obligations are the unit of account for purposes of applying the revenue standard and therefore determines when and how revenue is recognized. The Company determines the performance obligations at contract inception based on the goods that are promised in a contract with a customer. Typical performance obligations include automotive parts, automotive tooling, rolled good media and filter bags. The transaction price in the contract is determined based on the consideration to which the Company will be entitled in exchange for transferring products to the customer, excluding amounts collected on behalf of third parties (for example, sales taxes). The transaction price is typically stated on the purchase order or in a negotiated agreement. Certain contracts may include variable consideration in the transaction price, such as rebates, pricing discounts, price concessions, sales incentives, index pricing or other provisions that can decrease the transaction price. Estimates of variable consideration and determination of whether to include estimated amounts in the transaction price are based on reasonably available information (customer historical, current and forecasted data). In certain circumstances where a particular outcome is probable, the Company utilizes the most likely amount to which the Company expects to be entitled. The Company accounts for consideration payable to a customer as a reduction of the transaction price thereby reducing the amount of revenue recognized. Consideration payable to a customer includes cash amounts that the Company pays, or expects to pay, to a customer based on certain contract requirements. The Company recognizes revenue as performance obligations are satisfied, which can be either over time or at a point in time, depending on when control of the Company’s products transfers to its customers. In circumstances when control transfers over time, revenue is recognized based on the extent of progress towards completion of the performance obligation. Due to the nature of the work required to be performed on many of the Company’s performance obligations, the estimation of total revenue and cost at completion is complex, subject to many variables and requires significant judgment. The selection of the method to measure progress towards completion requires judgment and is based on the nature of the products to be provided. The Company generally uses the cost-to-cost measure of progress for contracts because it best depicts the transfer of control to the customer which occurs as costs are incurred on contracts. Under the cost-to-cost measure of progress, the extent of progress towards completion is measured based on the ratio of costs incurred to date to the total estimated costs at completion of the performance obligation. Revenues are recorded proportionally as costs are incurred. For tooling revenue recognized over time, the Company makes significant judgments which includes, but not limited to, estimated costs to completion, costs incurred to date, and assesses risks related to changes in estimates of revenues and costs. In doing so, management must make assumptions regarding the work required to fulfill the performance obligations, which is dependent upon the execution by the Company's subcontractors, among other variables and contract requirements. Changes in estimates for revenue recognized over time are recorded by the Company in the period they become known. Changes are recognized on a cumulative catch-up basis in net sales, costs of sales, and operating income. The cumulative catch up adjustment recognizes in the current period the cumulative effect of changes in estimates on current and prior periods. Performance Obligations The following is a description of products and performance obligations, separated by reportable segments, from which the Company generates its revenue. For more detailed information about reportable segments, see Note 13 “Segment Information.” Segment Performance Materials Products Products for this segment include filtration media solutions, thermal insulation solutions primarily for air, fluid power, and industrial applications, thermal insulation solutions for building products, appliances, and energy and industrial markets and air and liquid life science applications. Performance Obligations These contracts typically have distinct performance obligations, which is the promise to transfer the media solutions to the Company’s customers. The Company recognizes revenue at a point in time or over time, based upon when control of the underlying product transfers to the customer. If revenue is recognized at a point in time, the performance obligation is typically satisfied upon shipment and in accordance with shipping terms. In circumstances when control transfers over time, revenue is recognized based on the extent of progress towards completion of the performance obligation. Customer payment terms are negotiated on a contract-by-contract basis and typically range from 30 to 90 days. Segment Technical Nonwovens Products This segment produces needle punch nonwoven solutions including industrial filtration and advanced materials products. Industrial Filtration products include nonwoven rolled-good felt media and filter bags used primarily in industrial air and liquid filtration applications. Advanced materials products include nonwoven rolled good media used in commercial applications and predominantly serves the geosynthetic, automotive, industrial, medical, and safety apparel markets. The automotive media is provided to tier-one suppliers as well as the Company’s Thermal Acoustical Solutions segment. Performance Obligations These contracts typically have distinct performance obligations, which is the promise to transfer the industrial filtration or advanced materials products to the Company’s customers. The Company recognizes revenue at a point in time or over time, based upon when control transfers to the customer. If revenue is recognized at a point in time, the performance obligation is typically satisfied upon shipment and in accordance with shipping terms. In circumstances when control transfers over time, revenue is recognized based on the extent of progress towards completion of the performance obligation. Customer payment terms are negotiated on a contract-by-contract basis and typically range from 30 to 90 days. For filter bag sales, the Company may enter into warranty agreements that are implied or sold with the product to provide assurance that a product will function as expected and in accordance with certain specifications. Therefore, this type of warranty is not a separate performance obligation. Segment Thermal Acoustical Solutions Products Parts - The segment produces 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 noise vibration and harshness. The majority of products are sold to original equipment manufacturers and tier-one suppliers. Tooling - The Company enters into contractual agreements with certain customers within the automotive industry, to design and develop molds, dies and tools (collectively, “tooling”). Performance Obligations Parts - Customer contracts typically have distinct performance obligations, which is the promise to transfer manufactured parts to these customers. The Company recognizes parts revenue at a point in time or over time, based upon when control transfers to the customer. If revenue is recognized at a point in time, the performance obligation is typically satisfied upon shipment and in accordance with shipping terms. In circumstances when control transfers over time, revenue is recognized based on the extent of progress towards completion of the performance obligation. Customer payment terms are negotiated on a contract-by-contract basis and typically range from 30 to 90 days. Tooling - Customer contracts typically have distinct performance obligations and are generally completed within one year. The Company periodically enters into multiple contracts with a customer at or near the same time which may be combined for purposes of determining the appropriate transaction price. The Company allocates the transaction price to each performance obligation in the contract based on a relative stand-alone selling price using costs incurred plus expected margin. The corresponding revenues are recognized over time as the related performance obligations are satisfied. Tooling customer payment terms typically range from 30 to 90 days after title transfers to the customer. Occasionally customers make progress payments as the tool is constructed. Practical Expedients and Exemptions The Company has elected to adopt the contract cost practical expedient. This expedient allows the Company to recognize its incremental costs of obtaining contracts, such as sales commissions, as an expense when incurred if the related contract revenue is expected to be recognized in one year or less. These costs are included in selling, product development and administrative expenses. The Company has made an accounting policy election to record shipping and handling activities occurring after control has passed to the customer to be treated as a fulfillment cost rather than as a distinct performance obligation. Shipping and handling expenses consist primarily of costs incurred to deliver products to customers and internal costs related to preparing products for shipment and are recorded as a cost of sales. Amounts billed to customers as shipping and handling are classified as revenue when services are performed. ASC 606 requires the disclosure of unsatisfied performance obligations related to contracts from customers at the end of each reporting period. The Company has elected the practical expedient because the Company’s contracts generally have a duration of one year or less, therefore no disclosure is required. The Company has elected to adopt the practical expedient to disregard the need to adjust the promised amount of consideration for the effects of a significant financing component as the Company expects that the period of time between when the products are transferred to the customer and when the Company is paid for those products will be one year or less. Contract Assets and Liabilities The Company’s contract assets primarily include unbilled amounts typically resulting from sales under contracts when the over time method of revenue recognition is utilized and revenue recognized exceeds the amount billed to the customer. These unbilled accounts receivable in contract assets are transferred to accounts receivable upon invoicing, typically when the right to payment becomes unconditional in which case payment is due based only upon the passage of time. The Company’s contract liabilities primarily relate to billings and advance payments received from customers, and deferred revenue. These contract liabilities represent the Company’s obligation to transfer its products to its customers for which the Company has received, or is owed consideration from its customers. Contract liabilities are included in other accrued liabilities on the Company’s Condensed Consolidated Balance Sheets. Contract assets and liabilities consisted of the following (in thousands): March 31, 2018 January 1, 2018 Dollar Change Contract assets $ 25,005 $ 19,125 $ 5,880 Contract liabilities $ 3,198 $ 2,820 $ 378 The $5.9 million increase in contract assets from January 1, 2018 to March 31, 2018 was primarily due to timing of billings to customers. The $0.4 million increase in contract liabilities from January 1, 2018 to March 31, 2018 was primarily due to an increase in customer deposits partially offset by revenue recognized of $1.3 million in the first quarter related to contract liabilities at January 1, 2018. Impacts on Financial Statements The cumulative effect of the changes made to the Company’s Condensed Consolidated January 1, 2018 Balance Sheet for the adoption of ASC 606 was as follows: In thousands December 31, 2017 Adjustments for Adoption of ASC606 January 1, 2018 Assets: Contract assets $ — $ 19,125 $ 19,125 Inventories $ 80,339 $ (15,184 ) $ 65,155 Liabilities: Accounts payable $ 71,931 $ 663 $ 72,594 Other accrued liabilities $ 11,690 $ 1,209 $ 12,899 Deferred tax liabilities $ 14,714 $ 471 $ 15,185 Stockholders' equity: Retained earnings $ 374,783 $ 1,598 $ 376,381 The cumulative effect of the changes made to the Company’s Condensed Consolidated Balance Sheet for the adoption of ASC 606 was as follows: March 31, 2018 In thousands Balances Without Adoption of ASC 606 ASC 606 Adjustments As Reported Assets: Contract assets $ — $ 25,005 $ 25,005 Inventories $ 94,176 $ (19,913 ) $ 74,263 Liabilities: Accounts payable $ 76,742 $ 3,663 $ 80,405 Other accrued liabilities $ 15,402 $ (932 ) $ 14,470 Deferred tax liabilities $ 15,015 $ 527 $ 15,542 Stockholders' equity: Retained earnings $ 385,601 $ 1,834 $ 387,435 The cumulative effect of the changes made to the Company’s Condensed Consolidated Statement of Operations for the adoption of ASC 606 was as follows: Quarter Ended March 31, 2018 In thousands Results Without Adoption of ASC606 Effect of Change As Reported Net sales $ 185,406 $ 6,254 $ 191,660 Cost of sales 146,191 5,962 152,153 Gross profit 39,215 292 39,507 Selling, product development and administrative expenses 25,471 — 25,471 Operating income 13,744 292 14,036 Interest expense 540 — 540 Other expense, net 315 — 315 Income before income taxes 12,889 292 13,181 Income tax expense 2,067 56 2,123 Loss from equity method investment 4 — 4 Net income $ 10,818 $ 236 $ 11,054 Earnings per share: Basic $ 0.63 $ 0.01 $ 0.64 Diluted $ 0.62 $ 0.02 $ 0.64 Weighted average number of common shares outstanding: Basic 17,164 — 17,164 Diluted 17,339 — 17,339 Disaggregated Revenue The Company disaggregates revenue from customers by geographic region, as it believes this disclosure best depicts how the nature, amount, timing and uncertainty of the Company's revenue and cash flows are affected by economic factors. Disaggregated revenue by geographical region for the three months ended March 31, 2018 was as follows: Quarter Ended March 31, 2018 In thousands Performance Materials Technical Nonwovens Thermal Acoustical Solutions Eliminations and Other Consolidated Net Sales North America $ 19,161 $ 39,133 $ 69,979 $ (7,826 ) $ 120,447 Europe 11,532 19,386 28,055 (185 ) 58,788 Asia — 9,022 3,403 — 12,425 Total Net Sales $ 30,693 $ 67,541 $ 101,437 $ (8,011 ) $ 191,660 |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories as of March 31, 2018 and December 31, 2017 were as follows: In thousands March 31, December 31, Raw materials $ 34,023 $ 28,672 Work in process 16,013 29,427 Finished goods 24,227 23,901 74,263 82,000 Less: Progress billings — (1,661 ) Total inventories $ 74,263 $ 80,339 Included in work in process is gross tooling inventory of $6.5 million and $20.2 million at March 31, 2018 and December 31, 2017 , respectively. Tooling inventory, net of progress billings, was $18.5 million at December 31, 2017 . Effective January 1, 2018 the Company adopted ASC 606, Revenue from Contracts from Customers, under the modified retrospective transition method. The adoption of ASC 606 resulted in the reclassification of progress billings to contract liabilities. See Note 2, Revenue from Contracts with Customers, for further discussion of contract liabilities. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 3 Months Ended |
Mar. 31, 2018 | |
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 March 31, 2018 were as follows: December 31, Currency translation adjustments Additions March 31, 2018 In thousands Performance Materials $ 13,307 $ 115 $ — $ 13,422 Technical Nonwovens 55,662 (126 ) — 55,536 Total goodwill $ 68,969 $ (11 ) $ — $ 68,958 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 March 31, 2018 and December 31, 2017 : March 31, 2018 December 31, 2017 In thousands Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Amortized intangible assets Customer Relationships $ 39,399 $ (5,606 ) $ 39,474 $ (4,460 ) Patents 4,607 (3,942 ) 4,504 (3,821 ) Technology 2,500 (685 ) 2,500 (644 ) Trade Names 4,285 (1,689 ) 4,288 (1,461 ) License Agreements 652 (652 ) 640 (640 ) Other 601 (439 ) 586 (423 ) Total amortized intangible assets $ 52,044 $ (13,013 ) $ 51,992 $ (11,449 ) |
Long-term Debt and Financing Ar
Long-term Debt and Financing Arrangements | 3 Months Ended |
Mar. 31, 2018 | |
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 March 31, 2018 and December 31, 2017. 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 March 31, 2018 , the Company had borrowing availability of $94.5 million under the Amended Credit Facility, net of $76.6 million of borrowings outstanding and standby letters of credit outstanding of $3.9 million . In addition to the amounts outstanding under the Amended Credit Facility, the Company has various acquired foreign credit facilities totaling approximately $10.0 million . At March 31, 2018 , 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: March 31, December 31, In thousands Effective Rate Maturity 2018 2017 Revolver Loan, due July 7, 2021 2.88 % 2021 $ 76,600 $ 76,600 Capital Leases 1.65% - 2.09% 2019 - 2020 545 590 77,145 77,190 Less portion due within one year (283 ) (277 ) Total long-term debt $ 76,862 $ 76,913 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 2.6% for the three months ended March 31, 2018 and 2.2% for the year ended December 31, 2017 . |
Derivatives
Derivatives | 3 Months Ended |
Mar. 31, 2018 | |
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 enters 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. 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: March 31, 2018 December 31, 2017 In thousands Asset Derivatives Liability Derivatives Asset Derivatives Liability Derivatives Derivatives designated as hedging instruments: Interest rate contract $ 289 $ — $ 157 $ — Total derivatives $ 289 $ — $ 157 $ — The following table sets forth the income recorded in accumulated other comprehensive income (loss), net of tax, for the quarters ended March 31, 2018 and 2017 for derivatives held by the Company and designated as hedging instruments: Quarter Ended 2018 2017 Cash flow hedges: Interest rate contract $ 102 $ — $ 102 — |
Equity Compensation Plans
Equity Compensation Plans | 3 Months Ended |
Mar. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Equity Compensation Plans | Equity Compensation Plans As of March 31, 2018 , 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. The Company accounts 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 $1.2 million for each of the quarters ended March 31, 2018 and March 31, 2017 , 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 March 31, 2018 : In thousands except per share amounts Shares Weighted- Average Exercise Price Aggregate Intrinsic Value Outstanding at March 31, 2018 417 $ 34.36 $ 6,732 Exercisable at March 31, 2018 207 $ 21.90 $ 5,611 Unvested at March 31, 2018 210 $ 46.64 $ 1,121 There were 11,180 stock options granted and 27,041 stock options exercised during the quarter ended March 31, 2018 . The amount of cash received from the exercise of stock options was $0.7 million during the quarter ended March 31, 2018 . The intrinsic value of stock options exercised was $0.6 million with a tax benefit of $0.1 million during the quarter ended March 31, 2018 . There were no stock options granted and 12,164 stock options exercised during the quarter ended March 31, 2017. The amount of cash received from the exercise of stock options was $0.2 million during the quarter ended March 31,2017. The intrinsic value of stock options exercised was $0.5 million with a tax benefit of $0.2 million during the quarter ended March 31, 2017. At March 31, 2018 , the total unrecognized compensation cost related to non-vested stock option awards was approximately $3.3 million , with a weighted average expected amortization period of 3.0 years . Restricted Stock Restricted stock includes both performance-based and time-based awards. There were 8,106 time-based restricted stock shares granted during the quarter ended March 31, 2018 . There were 15,190 performance-based restricted shares granted during the quarter ended March 31, 2018 . There were 48,035 performance-based restricted shares that vested during the quarter ended March 31, 2018 in accordance with plan provisions. There were 5,164 time-based restricted shares that vested during the quarter ended March 31, 2018. There were no time-based restricted shares granted during the quarter ended March 31, 2017. There were 18,100 performance-based restricted shares granted during the quarter ended March 31, 2017. There were 108,600 performance-based restricted shares that vested during the quarter ended March 31, 2017 in accordance with Plan provisions. There were 9,288 time-based restricted shares that vested during the quarter ended March 31, 2017. At March 31, 2018 , there were 187,902 unvested restricted stock awards with total unrecognized compensation cost related to these awards of $5.6 million with a weighted average expected amortization period of 2.1 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 | 3 Months Ended |
Mar. 31, 2018 | |
Equity [Abstract] | |
Stock Repurchases | Stock Repurchases During the three months ended March 31, 2018 , the Company purchased 18,561 shares of common stock valued at $0.8 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 | 3 Months Ended |
Mar. 31, 2018 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | Restructuring In April 2017, the Company commenced a restructuring plan in the Technical Nonwovens segment which includes 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 total 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 March 31, 2018 , the Company recorded pre-tax restructuring expenses of $0.5 million . Restructuring expenses of $0.4 million , primarily related to severance and equipment move costs, were recorded in selling, product development and administrative expenses and $0.1 million of severance and engineering costs were recorded in cost of sales during the quarter ended March 31, 2018. The Company expects to record approximately $1.5 million of restructuring expenses in the second quarter of 2018 and $3.5 million for the year ended December 31, 2018. 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 Total estimated expenses 1,200 300 3,500 5,000 Expenses incurred through December 31, 2017 181 154 327 662 Estimated remaining expense at December 31, 2017 1,019 146 3,173 4,338 Expense incurred during quarter ended: March 31, 2018 $ 315 $ — $ 219 $ 534 Total pre-tax expense incurred $ 496 $ 154 $ 546 $ 1,196 Estimated remaining expense at March 31, 2018 704 146 2,954 3,804 There were cash outflows of $0.3 million for the restructuring program for the quarter ended March 31, 2018. Accrued restructuring costs were as follows at March 31, 2018 : In thousands Total Balance as of December 31, 2017 $ 333 Pre-tax restructuring expenses, excluding depreciation 469 Cash paid (320 ) Balance as of March 31, 2018 $ 482 |
Employer Sponsored Benefit Plan
Employer Sponsored Benefit Plans | 3 Months Ended |
Mar. 31, 2018 | |
Retirement Benefits [Abstract] | |
Employer Sponsored Benefit Plans | Employer Sponsored Benefit Plans As of March 31, 2018 , 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. As of January 1, 2018 the Company adopted ASU No. 2017-07, "Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost". This ASU required the other components of net benefit cost, which includes interest costs, expected return on plan assets, and amortization of actuarial loss be presented in the income statement outside a subtotal of income from operations for the quarter ended March 31, 2018. The retrospective adoption of this ASU resulted in the reclassification of net benefit costs of $0.1 million from cost of sales and $0.1 million from the selling, product development and administrative expenses to the other expense, net line in the Consolidated Statement of Operations for the quarter ended March 31, 2017. The Company expects to contribute approximately $3.0 million to $4.0 million in cash for the domestic pension plan in 2018, and is evaluating this strategy as a result of the recent changes to U.S. tax law enacted on December 22, 2017. Contributions of $1.2 million were made during the quarter ended March 31, 2018 and during the quarter ended March 31, 2017. The following is a summary of the components of net periodic benefit cost, which is recorded in other expense, net, for the domestic pension plan for the quarters ended March 31, 2018 and 2017 : Quarter Ended In thousands 2018 2017 Components of net periodic benefit cost Interest cost $ 470 $ 514 Expected return on assets (650 ) (594 ) Amortization of actuarial loss 256 273 Net periodic benefit cost $ 76 $ 193 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes On December 22, 2017, the United States enacted significant changes to U.S. tax law following the passage and signing of the Tax Cuts and Jobs Act (the "Tax Reform Act"). The Company has followed guidance in Staff Accounting Bulletin No.118 ("SAB 118"), which provides a measurement period, not to exceed one year from the enactment of the Tax Reform Act, and recorded provisional items related to the one-time mandatory repatriation of foreign earnings and the revaluation of deferred tax assets and liabilities for the year ended December 31, 2017. For the quarter ended March 31, 2018, the Company continued to perform analysis and evaluate interpretations and additional regulatory guidance, but did not record any adjustments to these provisional items, nor deemed any of them as complete. The Company’s effective tax rate for the first quarter of 2018 was 16.1% compared to an effective tax rate of 17.6% for the first quarter of 2017. The effective tax rate in the first quarter of 2018 was impacted by the reduction of the U.S. corporate tax rate from 35% to 21% under the Tax Reform Act, tax benefits of $0.3 million related to stock vesting and the geographical mix of earnings. The effective rate in the first quarter of 2017 of 17.6% was favorably impacted by a tax benefit of $1.6 million related to stock vesting as well as the geographical mix of earnings. 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, Canada and the Netherlands. 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 2013, 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 | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share For the quarters ended March 31, 2018 and 2017 , 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 In thousands 2018 2017 Basic average common shares outstanding 17,164 16,983 Effect of dilutive options and restricted stock awards 175 301 Diluted average common shares outstanding 17,339 17,284 For each of the quarters ended March 31, 2018 and 2017 , stock options for 137,709 shares and 38,280 shares of Common Stock were not considered in computing diluted earnings per common share because they were antidilutive. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information As of March 31, 2018 , the Company’s reportable segments are Performance Materials, Technical Nonwovens, and Thermal Acoustical Solutions. Effective January 1, 2018, the Thermal/Acoustical Metals and Thermal/Acoustical Fibers operating segments were combined into a single operating segment named Thermal Acoustical Solutions. These automotive segments were combined into one segment to allow the Company to better serve its customers, leverage operating disciplines and drive efficiencies across the global automotive operations. Prior period segment amounts throughout the Notes to the Condensed Consolidated Financial Statements have been recast to reflect the results of the new segment structure. The recast of historical business segment information had no impact on the consolidated financial results. 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 Lytherm® Insulation Media product brand services Lydall’s high temperature technology portfolio, 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 Filtration 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 Solutions 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 Solutions Segment The Thermal Acoustical Solutions 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 noise vibration and harshness (NVH). Lydall products are found in the interior (dash insulators, cabin flooring), underbody (wheel well, aerodynamic belly pan, fuel tank, exhaust, tunnel, spare tire) and under hood (engine compartment, outer dash, powertrain, catalytic converter, turbo charger, manifolds) of cars, trucks, SUVs, heavy duty trucks and recreational vehicles. Thermal Acoustical Solutions segment products offer thermal and acoustical insulating solutions comprised of organic and inorganic fiber composites that provide weight reduction, superior noise suppression and increased durability over conventional designs, as well as products that efficiently combine multiple layers of metal and thermal - acoustical insulation media to provide an engineered shielding solution for an array of application areas for the automotive and truck markets. 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 flux® product family 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. The tables below present net sales and operating income by segment for the quarters ended March 31, 2018 and 2017 , 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 In thousands 2018 2017 Performance Materials Segment: Filtration $ 20,690 $ 18,846 Thermal Insulation 7,507 7,425 Life Sciences Filtration 2,496 2,480 Performance Materials Segment net sales 30,693 28,751 Technical Nonwovens Segment: Industrial Filtration 40,231 34,214 Advanced Materials (1) 27,310 24,704 Technical Nonwovens net sales 67,541 58,918 Thermal Acoustical Solutions Segment: Parts 88,122 81,814 Tooling 13,315 2,971 Thermal Acoustical Solutions Segment net sales 101,437 84,785 Eliminations and Other (1) (8,011 ) (6,967 ) Consolidated Net Sales $ 191,660 $ 165,487 Operating income by segment: Quarter Ended In thousands 2018 2017 (2) Performance Materials $ 2,641 $ 1,658 Technical Nonwovens 5,006 4,668 Thermal Acoustical Solutions 12,614 14,796 Corporate Office Expenses (6,225 ) (5,974 ) Consolidated Operating Income $ 14,036 $ 15,148 (1) Included in the Technical Nonwovens segment and Eliminations and Other is $7.1 million and $6.3 million in intercompany sales to the Thermal Acoustical Solutions segment for the quarters ended March 31, 2018 and 2017 , respectively. (2) First quarter 2017 segment operating income amounts of $0.2 million have been reclassified to other expense, net, to give effect to the adoption of ASU No. 2017-07, "Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost". |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Environmental Remediation The Company elected to remediate environmental contamination discovered prior to the closing of the Texel acquisition in 2016 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 , which was further refined in July of 2017 to the top end of this range at $1.5 million and remains as the Company's best estimate as of March 31, 2018. During 2017, the environmental liability was reduced by $0.7 million , reflecting payments made to vendors, resulting in a balance of $0.8 million at December 31, 2017. During the three months ended March 31, 2018, the environmental liability was further reduced by $0.4 million , reflecting payments to vendors. The remaining balance for the environmental liability of $0.4 million (which remains fully offset as described below) is included within other long-term liabilities on the Company's balance sheet at March 31, 2018. Pursuant to the Share Purchase Agreement, ADS, Inc. ("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 $2.3 million U.S. Dollars as of March 31, 2018). 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 $10.9 million U.S. Dollars as of March 31, 2018), and based on the Share Purchase Agreement was reduced to approximately $7.0 million Canadian Dollars (approximately $5.4 million U.S. Dollars as of March 31, 2018). Based on the foregoing, an indemnification asset of $0.9 million was also recorded in other assets at December 31, 2016, and subsequently increased to $1.5 million in July of 2017, as the Company believed, and still believes collection from ADS is probable. The indemnification asset was decreased by $0.7 million , reflecting indemnification from ADS for payments made by the Company to its vendors during 2017. During the three months ended March 31, 2018, the indemnification asset was further reduced by $0.4 million , reflecting indemnification from ADS for payments made by the Company to its vendors The resulting indemnification asset balance was $0.4 million at March 31, 2018. 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 conducted a site investigation, the scope of which was 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. In the fourth quarter of 2017, the Company completed its state-approved site investigation report and submitted it to the NHDES. During the year ended December 31, 2017, the environmental liability of $0.2 million was reduced by $0.2 million reflecting payments made to vendors, resulting in no balance at December 31, 2017. In the first quarter of 2018, the Company received a response from the NHDES to the site investigation report outlining proposed remedial actions. The Company recorded $0.1 million of expense in the first quarter of 2018 associated with the expected costs to remediate the impacts of the discharge of regulated contaminants in accordance with standards established by the NHDES. Additionally, the Company expects to incur approximately $0.2 million of capital expenditures in 2018, which will be recorded as incurred, in relation to the lining of the Company's fresh water waste lagoons. While the site investigation is complete, the Company cannot be sure that costs will not exceed the current estimates until this matter is closed with the NHDES, 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) | 3 Months Ended |
Mar. 31, 2018 | |
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 March 31, 2018 and 2017 : 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, 2016 $ (27,885 ) $ (20,065 ) $ — $ (47,950 ) Other Comprehensive Income 2,729 — — 2,729 Amounts reclassified from accumulated other comprehensive loss — 172 (a) — 172 Balance at March 31, 2017 (25,156 ) (19,893 ) — (45,049 ) Balance at December 31, 2017 (2,221 ) (18,049 ) 122 (20,148 ) Other Comprehensive Income 2,545 — 102 (b) 2,647 Amounts reclassified from accumulated other comprehensive loss — 198 (a) — 198 Balance at March 31, 2018 $ 324 $ (17,851 ) $ 224 $ (17,303 ) (a) Amount represents amortization of actuarial losses, a component of net periodic benefit cost. This amount was $0.2 million , net of $0.1 million tax benefit for the quarters ended March 31, 2018 and 2017 . (b) Amount represents unrealized gains on the fair value of hedging activities, net of taxes, for the quarter ended March 31, 2018 . |
Basis of Financial Statement 24
Basis of Financial Statement Presentation (Policies) | 3 Months Ended |
Mar. 31, 2018 | |
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 year-end Condensed Consolidated Balance Sheet was derived from the December 31, 2017 audited financial statements, but does not include all disclosures required by U.S. GAAP. 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, 2017 . |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board ("FASB") issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606)”. The amended guidance establishes a single comprehensive model for companies to use in accounting for revenue arising from contracts with customers and will supersede most of the existing revenue recognition guidance, including industry-specific guidance. The amended guidance clarifies that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In applying the amended guidance, an entity will (1) identify the contract(s) with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the contract’s performance obligations; and (5) recognize revenue when (or as) the entity satisfies a performance obligation. ASC 606 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. The Company adopted the amended guidance and all related amendments using the modified retrospective approach on January 1, 2018, at which time it became effective for the Company. The Company recognized the cumulative effect of initially applying the new revenue standard to all contracts that were not completed on the date of adoption as an adjustment to the opening balance of retained earnings. (See Note 2. “Revenue from Contracts with Customers”). At the adoption date, the cumulative impact of revenue that would have been recognized over time, was $19.6 million . The impact was primarily driven by tooling net sales of $16.3 million from customer contracts within the Thermal Acoustical Solutions ("TAS") segment. The related adoption impact to retained earnings was $1.6 million , net of tax. The impact to net sales and net income as a result of applying ASC 606 was an increase of $6.3 million and $0.2 million , respectively, for the quarter ended March 31, 2018. In January 2016, the FASB issued ASU No. 2016-01, "Financial Instruments - Overall" (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities". This ASU revises an entity’s accounting related to (1) the classification and measurement of investments in equity securities and (2) the presentation of certain fair value changes for financial liabilities measured at fair value. It also amends certain disclosure requirements associated with the fair value of financial instruments. This ASU is effective for fiscal years beginning after December 15, 2017. In February 2018, the FASB issued ASU 2018-03, "Technical Corrections and Improvements to Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities", which clarifies various aspects of the guidance issued in ASU 2016-01. The adoption of these amendments is not required for public business entities with fiscal years beginning between December 15, 2017 and June 15, 2018 until the interim period beginning after June 15, 2018, however early adoption is permitted. The Company adopted both ASUs effective January 1, 2018. The adoption of these ASUs did not have any impact on the Company’s consolidated financial statements and disclosures. In August 2016, the FASB issued ASU No. 2016-15, "Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments", which provides guidance on eight specific cash flow classification issues. Prior to this ASU, GAAP did not include specific guidance on these eight cash flow classification issues. This ASU is effective for fiscal years beginning after December 15, 2017, with early adoption permitted. The adoption of this ASU did not have any impact on the Company’s consolidated financial statements and disclosures. In October 2016, the FASB issued ASU 2016-16, “Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory” as part of the Board’s initiative to reduce complexity in accounting standards. This ASU eliminates an exception in ASC 740, which prohibits the immediate recognition of income tax consequences of intra-entity asset transfers other than inventory. This ASU requires entities to recognize the immediate current and deferred income tax effects of intra-entity asset transfers. This ASU is effective for fiscal years beginning after December 15, 2017, with early adoption permitted. The adoption of this ASU did not have any impact on the Company’s consolidated financial statements and disclosures. In November 2016, the FASB issued ASU No. 2016-18, "Statement of Cash Flows (Topic 230): Restricted Cash", which clarifies guidance and presentation related to restricted cash in the statement of cash flows, including stating that restricted cash should be included within cash and cash equivalents on the statement of cash flows. The ASU was effective for fiscal years beginning after December 15, 2017, with early adoption permitted. The Company adopted this ASU effective January 1, 2018. The adoption of this ASU did not have any impact on the Company’s consolidated financial statements and disclosures. In January 2017, the FASB issued ASU No. 2017-01, "Business Combinations (Topic 805): Clarifying the Definition of a Business", which adds guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The definition of a business affects many areas of accounting including acquisitions, disposals, goodwill, and consolidation. The amendments of this ASU provide a screen to determine when an integrated set of assets and activities is not a business. This ASU was effective for fiscal years beginning after December 15, 2017. The adoption of this ASU did not have any impact on the Company’s consolidated financial statements and disclosures. In March 2017, the FASB issued ASU No. 2017-07, "Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost". This ASU requires an entity to report the service cost component of net benefit costs in the same line item(s) as other compensation costs arising from services rendered by the pertinent employees during the period. This ASU also requires the other components of net benefit cost, which includes interest costs and actual return on plan assets to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations. This ASU was effective for fiscal year beginning after December 15, 2017. As required for retrospective adoption, the Company reclassified net benefit costs of $0.1 million from cost of sales and $0.1 million from the selling, product development and administrative expenses to other expense, net, in the Consolidated Statement of Operations for the quarter ended March 31, 2017. The adoption of this ASU had minimal impact on the Company's consolidated financial statements and disclosures for the quarter ended March 31, 2018. 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 was effective for fiscal years beginning after December 15, 2017. The adoption of this ASU did not have any impact on the Company’s consolidated financial statements and disclosures. 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 developing a plan to evaluate the method and impact the adoption of ASU 2016-02 will have on the Company’s consolidated financial statements and disclosures. Significant Accounting Policies The Company’s significant accounting policies are detailed in Note 1 “Significant Accounting Policies” within Part IV Item 15 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2017. Significant changes to these accounting policies as a result of adopting ASC 606 “Revenue from Contracts with Customers” are discussed within Note 2, “Revenue from Contracts with Customers.” |
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 enters 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. |
Revenue from Contracts with C25
Revenue from Contracts with Customers (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Contract Assets and Liabilities | Contract assets and liabilities consisted of the following (in thousands): March 31, 2018 January 1, 2018 Dollar Change Contract assets $ 25,005 $ 19,125 $ 5,880 Contract liabilities $ 3,198 $ 2,820 $ 378 |
Schedule of Impact on Consolidated Income Statement and Consolidated Balance Sheet | The cumulative effect of the changes made to the Company’s Condensed Consolidated January 1, 2018 Balance Sheet for the adoption of ASC 606 was as follows: In thousands December 31, 2017 Adjustments for Adoption of ASC606 January 1, 2018 Assets: Contract assets $ — $ 19,125 $ 19,125 Inventories $ 80,339 $ (15,184 ) $ 65,155 Liabilities: Accounts payable $ 71,931 $ 663 $ 72,594 Other accrued liabilities $ 11,690 $ 1,209 $ 12,899 Deferred tax liabilities $ 14,714 $ 471 $ 15,185 Stockholders' equity: Retained earnings $ 374,783 $ 1,598 $ 376,381 The cumulative effect of the changes made to the Company’s Condensed Consolidated Balance Sheet for the adoption of ASC 606 was as follows: March 31, 2018 In thousands Balances Without Adoption of ASC 606 ASC 606 Adjustments As Reported Assets: Contract assets $ — $ 25,005 $ 25,005 Inventories $ 94,176 $ (19,913 ) $ 74,263 Liabilities: Accounts payable $ 76,742 $ 3,663 $ 80,405 Other accrued liabilities $ 15,402 $ (932 ) $ 14,470 Deferred tax liabilities $ 15,015 $ 527 $ 15,542 Stockholders' equity: Retained earnings $ 385,601 $ 1,834 $ 387,435 The cumulative effect of the changes made to the Company’s Condensed Consolidated Statement of Operations for the adoption of ASC 606 was as follows: Quarter Ended March 31, 2018 In thousands Results Without Adoption of ASC606 Effect of Change As Reported Net sales $ 185,406 $ 6,254 $ 191,660 Cost of sales 146,191 5,962 152,153 Gross profit 39,215 292 39,507 Selling, product development and administrative expenses 25,471 — 25,471 Operating income 13,744 292 14,036 Interest expense 540 — 540 Other expense, net 315 — 315 Income before income taxes 12,889 292 13,181 Income tax expense 2,067 56 2,123 Loss from equity method investment 4 — 4 Net income $ 10,818 $ 236 $ 11,054 Earnings per share: Basic $ 0.63 $ 0.01 $ 0.64 Diluted $ 0.62 $ 0.02 $ 0.64 Weighted average number of common shares outstanding: Basic 17,164 — 17,164 Diluted 17,339 — 17,339 |
Schedule of Disaggregation of Revenue by Geographical Location | Disaggregated revenue by geographical region for the three months ended March 31, 2018 was as follows: Quarter Ended March 31, 2018 In thousands Performance Materials Technical Nonwovens Thermal Acoustical Solutions Eliminations and Other Consolidated Net Sales North America $ 19,161 $ 39,133 $ 69,979 $ (7,826 ) $ 120,447 Europe 11,532 19,386 28,055 (185 ) 58,788 Asia — 9,022 3,403 — 12,425 Total Net Sales $ 30,693 $ 67,541 $ 101,437 $ (8,011 ) $ 191,660 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories as of March 31, 2018 and December 31, 2017 were as follows: In thousands March 31, December 31, Raw materials $ 34,023 $ 28,672 Work in process 16,013 29,427 Finished goods 24,227 23,901 74,263 82,000 Less: Progress billings — (1,661 ) Total inventories $ 74,263 $ 80,339 |
Goodwill and Other Intangible27
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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 March 31, 2018 were as follows: December 31, Currency translation adjustments Additions March 31, 2018 In thousands Performance Materials $ 13,307 $ 115 $ — $ 13,422 Technical Nonwovens 55,662 (126 ) — 55,536 Total goodwill $ 68,969 $ (11 ) $ — $ 68,958 |
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 March 31, 2018 and December 31, 2017 : March 31, 2018 December 31, 2017 In thousands Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Amortized intangible assets Customer Relationships $ 39,399 $ (5,606 ) $ 39,474 $ (4,460 ) Patents 4,607 (3,942 ) 4,504 (3,821 ) Technology 2,500 (685 ) 2,500 (644 ) Trade Names 4,285 (1,689 ) 4,288 (1,461 ) License Agreements 652 (652 ) 640 (640 ) Other 601 (439 ) 586 (423 ) Total amortized intangible assets $ 52,044 $ (13,013 ) $ 51,992 $ (11,449 ) |
Long-term Debt and Financing 28
Long-term Debt and Financing Arrangements (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Maturities of Long-term Debt | Total outstanding debt consists of: March 31, December 31, In thousands Effective Rate Maturity 2018 2017 Revolver Loan, due July 7, 2021 2.88 % 2021 $ 76,600 $ 76,600 Capital Leases 1.65% - 2.09% 2019 - 2020 545 590 77,145 77,190 Less portion due within one year (283 ) (277 ) Total long-term debt $ 76,862 $ 76,913 |
Derivatives (Tables)
Derivatives (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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: March 31, 2018 December 31, 2017 In thousands Asset Derivatives Liability Derivatives Asset Derivatives Liability Derivatives Derivatives designated as hedging instruments: Interest rate contract $ 289 $ — $ 157 $ — Total derivatives $ 289 $ — $ 157 $ — |
Schedule of Derivative Liabilities at Fair Value | The following table sets forth the fair value amounts of derivative instruments held by the Company: March 31, 2018 December 31, 2017 In thousands Asset Derivatives Liability Derivatives Asset Derivatives Liability Derivatives Derivatives designated as hedging instruments: Interest rate contract $ 289 $ — $ 157 $ — Total derivatives $ 289 $ — $ 157 $ — |
Schedule of Cash Flow Hedges included in Accumulated Other Comprehensive Income (Loss) | The following table sets forth the income recorded in accumulated other comprehensive income (loss), net of tax, for the quarters ended March 31, 2018 and 2017 for derivatives held by the Company and designated as hedging instruments: Quarter Ended 2018 2017 Cash flow hedges: Interest rate contract $ 102 $ — $ 102 — |
Equity Compensation Plans (Tabl
Equity Compensation Plans (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Outstanding and Exercisable Options | The following table is a summary of outstanding and exercisable options as of March 31, 2018 : In thousands except per share amounts Shares Weighted- Average Exercise Price Aggregate Intrinsic Value Outstanding at March 31, 2018 417 $ 34.36 $ 6,732 Exercisable at March 31, 2018 207 $ 21.90 $ 5,611 Unvested at March 31, 2018 210 $ 46.64 $ 1,121 |
Restructuring (Tables)
Restructuring (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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 Total estimated expenses 1,200 300 3,500 5,000 Expenses incurred through December 31, 2017 181 154 327 662 Estimated remaining expense at December 31, 2017 1,019 146 3,173 4,338 Expense incurred during quarter ended: March 31, 2018 $ 315 $ — $ 219 $ 534 Total pre-tax expense incurred $ 496 $ 154 $ 546 $ 1,196 Estimated remaining expense at March 31, 2018 704 146 2,954 3,804 |
Schedule of Restructuring Reserve by Type of Cost | Accrued restructuring costs were as follows at March 31, 2018 : In thousands Total Balance as of December 31, 2017 $ 333 Pre-tax restructuring expenses, excluding depreciation 469 Cash paid (320 ) Balance as of March 31, 2018 $ 482 |
Employer Sponsored Benefit Pl32
Employer Sponsored Benefit Plans (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Retirement Benefits [Abstract] | |
Schedule 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 in other expense, net, for the domestic pension plan for the quarters ended March 31, 2018 and 2017 : Quarter Ended In thousands 2018 2017 Components of net periodic benefit cost Interest cost $ 470 $ 514 Expected return on assets (650 ) (594 ) Amortization of actuarial loss 256 273 Net periodic benefit cost $ 76 $ 193 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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 In thousands 2018 2017 Basic average common shares outstanding 17,164 16,983 Effect of dilutive options and restricted stock awards 175 301 Diluted average common shares outstanding 17,339 17,284 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Consolidated Net Sales by Segment | Consolidated net sales by segment: Quarter Ended In thousands 2018 2017 Performance Materials Segment: Filtration $ 20,690 $ 18,846 Thermal Insulation 7,507 7,425 Life Sciences Filtration 2,496 2,480 Performance Materials Segment net sales 30,693 28,751 Technical Nonwovens Segment: Industrial Filtration 40,231 34,214 Advanced Materials (1) 27,310 24,704 Technical Nonwovens net sales 67,541 58,918 Thermal Acoustical Solutions Segment: Parts 88,122 81,814 Tooling 13,315 2,971 Thermal Acoustical Solutions Segment net sales 101,437 84,785 Eliminations and Other (1) (8,011 ) (6,967 ) Consolidated Net Sales $ 191,660 $ 165,487 |
Schedule of Operating Income by Segment | Operating income by segment: Quarter Ended In thousands 2018 2017 (2) Performance Materials $ 2,641 $ 1,658 Technical Nonwovens 5,006 4,668 Thermal Acoustical Solutions 12,614 14,796 Corporate Office Expenses (6,225 ) (5,974 ) Consolidated Operating Income $ 14,036 $ 15,148 (1) Included in the Technical Nonwovens segment and Eliminations and Other is $7.1 million and $6.3 million in intercompany sales to the Thermal Acoustical Solutions segment for the quarters ended March 31, 2018 and 2017 , respectively. (2) First quarter 2017 segment operating income amounts of $0.2 million have been reclassified to other expense, net, to give effect to the adoption of ASU No. 2017-07, "Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost". |
Changes in Accumulated Other 35
Changes in Accumulated Other Comprehensive Income (Loss) (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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 March 31, 2018 and 2017 : 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, 2016 $ (27,885 ) $ (20,065 ) $ — $ (47,950 ) Other Comprehensive Income 2,729 — — 2,729 Amounts reclassified from accumulated other comprehensive loss — 172 (a) — 172 Balance at March 31, 2017 (25,156 ) (19,893 ) — (45,049 ) Balance at December 31, 2017 (2,221 ) (18,049 ) 122 (20,148 ) Other Comprehensive Income 2,545 — 102 (b) 2,647 Amounts reclassified from accumulated other comprehensive loss — 198 (a) — 198 Balance at March 31, 2018 $ 324 $ (17,851 ) $ 224 $ (17,303 ) (a) Amount represents amortization of actuarial losses, a component of net periodic benefit cost. This amount was $0.2 million , net of $0.1 million tax benefit for the quarters ended March 31, 2018 and 2017 . (b) Amount represents unrealized gains on the fair value of hedging activities, net of taxes, for the quarter ended March 31, 2018 . |
Basis of Financial Statement 36
Basis of Financial Statement Presentation - Narrative (Details) - USD ($) $ in Thousands | Jan. 01, 2018 | Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 |
New Accounting Pronouncement, Early Adoption [Line Items] | ||||
Effect on revenue | $ 191,660 | |||
Effect on net sales | 191,660 | $ 165,487 | ||
Effect on net income | 11,054 | 11,669 | ||
Effect on retained earnings | $ 376,381 | 387,435 | $ 374,783 | |
Cost of sales | 152,153 | 124,989 | ||
Selling, product development and administrative expenses | 25,471 | $ 25,350 | ||
Accounting Standards Update 2014-09 | Difference between Revenue Guidance in Effect before and after Topic 606 | ||||
New Accounting Pronouncement, Early Adoption [Line Items] | ||||
Effect on revenue | 19,600 | |||
Effect on net sales | 16,300 | 6,254 | ||
Effect on net income | 236 | |||
Effect on retained earnings | $ 1,598 | 1,834 | ||
Cost of sales | 5,962 | |||
Selling, product development and administrative expenses | 0 | |||
Accounting Standards Update 2017-07 | ||||
New Accounting Pronouncement, Early Adoption [Line Items] | ||||
Cost of sales | 100 | |||
Selling, product development and administrative expenses | $ 100 |
Revenue from Contracts with C37
Revenue from Contracts with Customers - Narrative (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Revenue from Contract with Customer [Abstract] | |
Increase in net contract assets | $ 5.9 |
Increase in contract liabilities | 0.4 |
Revenue recognized from contracts with customers | $ 1.3 |
Revenue from Contracts with C38
Revenue from Contracts with Customers - Contract Assets and Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
Disaggregation of Revenue [Line Items] | |||
Contract assets | $ 25,005 | $ 19,125 | $ 0 |
Contract liabilities | $ 3,198 | 2,820 | |
Accounting Standards Update 2014-09 | |||
Disaggregation of Revenue [Line Items] | |||
Contract assets | 5,880 | ||
Contract liabilities | $ 378 |
Revenue from Contracts with C39
Revenue from Contracts with Customers - Impact on Consolidated Income Statement and Consolidated Balance Sheet (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | Jan. 01, 2018 | Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 |
Assets: | ||||
Contract assets | $ 19,125 | $ 25,005 | $ 0 | |
Inventories | 65,155 | 74,263 | 80,339 | |
Liabilities: | ||||
Accounts payable | 72,594 | 80,405 | 71,931 | |
Other accrued liabilities | 12,899 | 14,470 | 11,690 | |
Deferred tax liabilities | 15,185 | 15,542 | 14,714 | |
Stockholders' equity: | ||||
Retained earnings | 376,381 | 387,435 | 374,783 | |
Income Statement | ||||
Net sales | 191,660 | $ 165,487 | ||
Cost of sales | 152,153 | 124,989 | ||
Gross profit | 39,507 | 40,498 | ||
Selling, product development and administrative expenses | 25,471 | 25,350 | ||
Operating income | 14,036 | 15,148 | ||
Interest expense | 540 | 606 | ||
Other expense, net | 315 | 333 | ||
Income before income taxes | 13,181 | 14,209 | ||
Income tax expense | 2,123 | 2,494 | ||
Loss from equity method investment | 4 | 46 | ||
Net income | $ 11,054 | $ 11,669 | ||
Earnings per share: | ||||
Basic (USD per share) | $ 0.64 | $ 0.69 | ||
Diluted (USD per share) | $ 0.64 | $ 0.68 | ||
Weighted average number of common shares outstanding: | ||||
Basic average common shares outstanding | 17,164 | 16,983 | ||
Diluted average common shares outstanding | 17,339 | 17,284 | ||
Calculated under Revenue Guidance in Effect before Topic 606 | ||||
Assets: | ||||
Contract assets | $ 0 | 0 | ||
Inventories | 94,176 | 80,339 | ||
Liabilities: | ||||
Accounts payable | 76,742 | 71,931 | ||
Other accrued liabilities | 15,402 | 11,690 | ||
Deferred tax liabilities | 15,015 | 14,714 | ||
Stockholders' equity: | ||||
Retained earnings | 385,601 | $ 374,783 | ||
Income Statement | ||||
Net sales | 185,406 | |||
Cost of sales | 146,191 | |||
Gross profit | 39,215 | |||
Selling, product development and administrative expenses | 25,471 | |||
Operating income | 13,744 | |||
Interest expense | 540 | |||
Other expense, net | 315 | |||
Income before income taxes | 12,889 | |||
Income tax expense | 2,067 | |||
Loss from equity method investment | 4 | |||
Net income | $ 10,818 | |||
Earnings per share: | ||||
Basic (USD per share) | $ 0.63 | |||
Diluted (USD per share) | $ 0.62 | |||
Weighted average number of common shares outstanding: | ||||
Basic average common shares outstanding | 17,164 | |||
Diluted average common shares outstanding | 17,339 | |||
Accounting Standards Update 2014-09 | ||||
Assets: | ||||
Contract assets | 5,880 | |||
Accounting Standards Update 2014-09 | Difference between Revenue Guidance in Effect before and after Topic 606 | ||||
Assets: | ||||
Contract assets | 19,125 | $ 25,005 | ||
Inventories | (15,184) | (19,913) | ||
Liabilities: | ||||
Accounts payable | 663 | 3,663 | ||
Other accrued liabilities | 1,209 | (932) | ||
Deferred tax liabilities | 471 | 527 | ||
Stockholders' equity: | ||||
Retained earnings | 1,598 | 1,834 | ||
Income Statement | ||||
Net sales | $ 16,300 | 6,254 | ||
Cost of sales | 5,962 | |||
Gross profit | 292 | |||
Selling, product development and administrative expenses | 0 | |||
Operating income | 292 | |||
Interest expense | 0 | |||
Other expense, net | 0 | |||
Income before income taxes | 292 | |||
Income tax expense | 56 | |||
Loss from equity method investment | 0 | |||
Net income | $ 236 | |||
Earnings per share: | ||||
Basic (USD per share) | $ 0.01 | |||
Diluted (USD per share) | $ 0.02 | |||
Weighted average number of common shares outstanding: | ||||
Basic average common shares outstanding | 0 | |||
Diluted average common shares outstanding | 0 |
Revenue from Contracts with C40
Revenue from Contracts with Customers - Disaggregation of Revenue by Geographical Location (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Disaggregation of Revenue [Line Items] | |
Total Net Sales | $ 191,660 |
North America | |
Disaggregation of Revenue [Line Items] | |
Total Net Sales | 120,447 |
Europe | |
Disaggregation of Revenue [Line Items] | |
Total Net Sales | 58,788 |
Asia | |
Disaggregation of Revenue [Line Items] | |
Total Net Sales | 12,425 |
Operating Segments | Performance Materials | |
Disaggregation of Revenue [Line Items] | |
Total Net Sales | 30,693 |
Operating Segments | Performance Materials | North America | |
Disaggregation of Revenue [Line Items] | |
Total Net Sales | 19,161 |
Operating Segments | Performance Materials | Europe | |
Disaggregation of Revenue [Line Items] | |
Total Net Sales | 11,532 |
Operating Segments | Performance Materials | Asia | |
Disaggregation of Revenue [Line Items] | |
Total Net Sales | 0 |
Operating Segments | Technical Nonwovens | |
Disaggregation of Revenue [Line Items] | |
Total Net Sales | 67,541 |
Operating Segments | Technical Nonwovens | North America | |
Disaggregation of Revenue [Line Items] | |
Total Net Sales | 39,133 |
Operating Segments | Technical Nonwovens | Europe | |
Disaggregation of Revenue [Line Items] | |
Total Net Sales | 19,386 |
Operating Segments | Technical Nonwovens | Asia | |
Disaggregation of Revenue [Line Items] | |
Total Net Sales | 9,022 |
Operating Segments | Thermal Acoustical Solutions | |
Disaggregation of Revenue [Line Items] | |
Total Net Sales | 101,437 |
Operating Segments | Thermal Acoustical Solutions | North America | |
Disaggregation of Revenue [Line Items] | |
Total Net Sales | 69,979 |
Operating Segments | Thermal Acoustical Solutions | Europe | |
Disaggregation of Revenue [Line Items] | |
Total Net Sales | 28,055 |
Operating Segments | Thermal Acoustical Solutions | Asia | |
Disaggregation of Revenue [Line Items] | |
Total Net Sales | 3,403 |
Eliminations and Other | |
Disaggregation of Revenue [Line Items] | |
Total Net Sales | (8,011) |
Eliminations and Other | North America | |
Disaggregation of Revenue [Line Items] | |
Total Net Sales | (7,826) |
Eliminations and Other | Europe | |
Disaggregation of Revenue [Line Items] | |
Total Net Sales | (185) |
Eliminations and Other | Asia | |
Disaggregation of Revenue [Line Items] | |
Total Net Sales | $ 0 |
Inventories - Narrative (Detail
Inventories - Narrative (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Inventory Disclosure [Abstract] | ||
Gross tooling inventory | $ 6.5 | $ 20.2 |
Tooling inventory net of progress billings | $ 18.5 |
Inventories - Summary (Details)
Inventories - Summary (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Inventory, Net [Abstract] | ||
Raw materials | $ 34,023 | $ 28,672 |
Work in process | 16,013 | 29,427 |
Finished goods | 24,227 | 23,901 |
Gross inventory total | 74,263 | 82,000 |
Less: Progress billings | 0 | (1,661) |
Total inventories | $ 74,263 | $ 80,339 |
Goodwill and Other Intangible43
Goodwill and Other Intangible Assets - Changes in Carrying Amount of Goodwill by Segment (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Goodwill [Roll Forward] | |
Balance at beginning of period | $ 68,969 |
Currency translation adjustments | (11) |
Additions | 0 |
Balance at end of period | 68,958 |
Performance Materials | |
Goodwill [Roll Forward] | |
Balance at beginning of period | 13,307 |
Currency translation adjustments | 115 |
Additions | 0 |
Balance at end of period | 13,422 |
Technical Nonwovens | |
Goodwill [Roll Forward] | |
Balance at beginning of period | 55,662 |
Currency translation adjustments | (126) |
Additions | 0 |
Balance at end of period | $ 55,536 |
Goodwill and Other Intangible44
Goodwill and Other Intangible Assets - Amortization of the Company's Acquired Intangible Assets Other than Goodwill (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Amortized intangible assets | ||
Gross Carrying Amount | $ 52,044 | $ 51,992 |
Accumulated Amortization | (13,013) | (11,449) |
Customer Relationships | ||
Amortized intangible assets | ||
Gross Carrying Amount | 39,399 | 39,474 |
Accumulated Amortization | (5,606) | (4,460) |
Patents | ||
Amortized intangible assets | ||
Gross Carrying Amount | 4,607 | 4,504 |
Accumulated Amortization | (3,942) | (3,821) |
Technology | ||
Amortized intangible assets | ||
Gross Carrying Amount | 2,500 | 2,500 |
Accumulated Amortization | (685) | (644) |
Trade Names | ||
Amortized intangible assets | ||
Gross Carrying Amount | 4,285 | 4,288 |
Accumulated Amortization | (1,689) | (1,461) |
License Agreements | ||
Amortized intangible assets | ||
Gross Carrying Amount | 652 | 640 |
Accumulated Amortization | (652) | (640) |
Other | ||
Amortized intangible assets | ||
Gross Carrying Amount | 601 | 586 |
Accumulated Amortization | $ (439) | $ (423) |
Long-term Debt and Financing 45
Long-term Debt and Financing Arrangements - Narrative (Details) | Jul. 07, 2016USD ($) | Apr. 30, 2017USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2017 | Jul. 06, 2016USD ($) |
Debt Instrument [Line Items] | |||||
Debt, weighted average interest rate (as a percent) | 2.60% | 2.20% | |||
Interest Rate Swap | |||||
Debt Instrument [Line Items] | |||||
Derivative agreement term | 3 years | ||||
Derivative notional amount | $ 60,000,000 | ||||
Fixed rate of derivatives (as a percent) | 1.58% | ||||
Quarterly reduction to notional amount | $ 5,000,000 | ||||
Amended Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Outstanding standby letters of credit | 3,900,000 | ||||
Revolving Credit Facility | Amended Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | $ 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 | ||||
Minimum required Consolidated EBITDA for preceding 12 month period | $ 30,000,000 | ||||
Remaining borrowing capacity | 94,500,000 | ||||
Outstanding borrowings | $ 76,600,000 | ||||
Revolving Credit Facility | Amended Credit Facility | Minimum | |||||
Debt Instrument [Line Items] | |||||
Quarterly commitment fee (as a percent) | 0.175% | ||||
Revolving Credit Facility | Amended Credit Facility | Maximum | |||||
Debt Instrument [Line Items] | |||||
Quarterly commitment fee (as a percent) | 0.30% | ||||
Revolving Credit Facility | Amended Credit Facility | Base Rate | Minimum | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate (as a percent) | 0.15% | ||||
Revolving Credit Facility | Amended Credit Facility | Base Rate | Maximum | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate (as a percent) | 1.00% | ||||
Revolving Credit Facility | Amended Credit Facility | Federal Funds Effective Swap Rate | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate (as a percent) | 0.50% | ||||
Revolving Credit Facility | Amended Credit Facility | Eurocurrency Rate | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate (as a percent) | 1.00% | ||||
Revolving Credit Facility | Amended Credit Facility | Eurocurrency Rate | Minimum | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate (as a percent) | 0.75% | ||||
Revolving Credit Facility | Amended Credit Facility | Eurocurrency Rate | Maximum | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate (as a percent) | 1.75% | ||||
Foreign Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Remaining borrowing capacity | $ 10,000,000 | ||||
Outstanding borrowings | 100,000 | ||||
Outstanding standby letters of credit | $ 3,000,000 |
Long-term Debt and Financing 46
Long-term Debt and Financing Arrangements - Maturities of Long-term Debt (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Long-term debt | $ 77,145 | $ 77,190 |
Less portion due within one year | (283) | (277) |
Total long-term debt | 76,862 | 76,913 |
Capital Leases | Capital Leases | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 545 | 590 |
Revolving Credit Facility | Revolver Loan, due July 7, 2021 | ||
Debt Instrument [Line Items] | ||
Debt instrument, effective interest rate (as a percent) | 2.88% | |
Long-term debt | $ 76,600 | $ 76,600 |
Minimum | Capital Leases | ||
Debt Instrument [Line Items] | ||
Debt instrument, effective interest rate (as a percent) | 1.65% | |
Maximum | Capital Leases | ||
Debt Instrument [Line Items] | ||
Debt instrument, effective interest rate (as a percent) | 2.09% |
Derivatives - Narrative (Detail
Derivatives - Narrative (Details) - Interest Rate Swap - USD ($) | 1 Months Ended | 3 Months Ended |
Apr. 30, 2017 | Mar. 31, 2018 | |
Derivative [Line Items] | ||
Derivative agreement term | 3 years | |
Derivative notional amount | $ 60,000,000 | |
Fixed rate of derivatives (as a percent) | 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 | Mar. 31, 2018 | Dec. 31, 2017 |
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | $ 289 | $ 157 |
Liability Derivatives | 0 | 0 |
Interest rate contract | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 289 | 157 |
Liability Derivatives | $ 0 | $ 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 | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) recognized in other comprehensive income | $ 102 | $ 0 |
Interest rate contract | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) recognized in other comprehensive income | $ 102 | $ 0 |
Equity Compensation Plans - Nar
Equity Compensation Plans - Narrative (Details) - USD ($) $ in Millions | Apr. 27, 2012 | Mar. 31, 2018 | Mar. 31, 2017 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock based compensation expense | $ 1.2 | $ 1.2 | |
Stock options granted (shares) | 11,180 | 0 | |
Stock options exercised (shares) | 27,041 | 12,164 | |
Cash received from exercise of stock option | $ 0.7 | $ 0.2 | |
Intrinsic value of options exercised | 0.6 | 0.5 | |
Intrinsic value of stock options exercised, tax benefit | $ 0.1 | $ 0.2 | |
Employee Stock Option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award, term | 10 years | ||
Total unrecognized compensation cost | $ 3.3 | ||
Weighted average expected amortization period | 3 years | ||
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 | $ 5.6 | ||
Weighted average expected amortization period | 2 years 1 month 18 days | ||
Unvested restricted stock awards (shares) | 187,902 | ||
Time Based Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted shares granted (shares) | 8,106 | 0 | |
Restricted shares vested (shares) | 5,164 | 9,288 | |
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) | 15,190 | 18,100 | |
Restricted shares vested (shares) | 48,035 | 108,600 | |
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 - Out
Equity Compensation Plans - Outstanding and Exercisable Options (Details) $ / shares in Units, shares in Thousands, $ in Thousands | Mar. 31, 2018USD ($)$ / sharesshares |
Shares | |
Outstanding (shares) | shares | 417 |
Exercisable (shares) | shares | 207 |
Unvested (shares) | shares | 210 |
Weighted- Average Exercise Price | |
Outstanding (USD per share) | $ / shares | $ 34.36 |
Exercisable (USD per share) | $ / shares | 21.90 |
Unvested (USD per share) | $ / shares | $ 46.64 |
Aggregate Intrinsic Value | |
Outstanding | $ | $ 6,732 |
Exercisable | $ | 5,611 |
Unvested | $ | $ 1,121 |
Stock Repurchases - Narrative (
Stock Repurchases - Narrative (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2018USD ($)shares | |
Equity [Abstract] | |
Stock repurchased during period (shares) | shares | 18,561 |
Aggregate purchase price of shares repurchased | $ | $ 0.8 |
Restructuring - Narrative (Deta
Restructuring - Narrative (Details) - Technical Nonwovens - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Apr. 30, 2017 | |
Restructuring Cost and Reserve [Line Items] | |||||
Estimated pre-tax restructuring expense | $ 5,000 | ||||
Restructuring, expected costs resulting in future cash expenditures | $ 4,800 | ||||
Cash paid | 320 | $ 3,500 | |||
Pre-tax restructuring expenses, excluding depreciation | 400 | ||||
Selling, Product Development and Administrative Expenses | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Pre-tax restructuring expenses, excluding depreciation | 500 | ||||
Cost of Sales | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Pre-tax restructuring expenses, excluding depreciation | $ 100 | ||||
Forecast | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Pre-tax restructuring expenses, excluding depreciation | $ 1,500 | $ 3,500 |
Restructuring - Actual and Esti
Restructuring - Actual and Estimated Pre-Tax Expenses (Details) - Technical Nonwovens - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Restructuring Cost and Reserve [Line Items] | |||
Total estimated expenses | $ 534 | $ 5,000 | |
Total pre-tax expense incurred | $ 1,196 | 662 | |
Estimated remaining expense at March 31, 2018 | 3,804 | 4,338 | |
Severance and Related Expenses | |||
Restructuring Cost and Reserve [Line Items] | |||
Total estimated expenses | 315 | 1,200 | |
Total pre-tax expense incurred | 496 | 181 | |
Estimated remaining expense at March 31, 2018 | 704 | 1,019 | |
Contract Termination Expenses | |||
Restructuring Cost and Reserve [Line Items] | |||
Total estimated expenses | 0 | 300 | |
Total pre-tax expense incurred | 154 | 154 | |
Estimated remaining expense at March 31, 2018 | 146 | 146 | |
Facility Exit, Move and Set-up Expenses | |||
Restructuring Cost and Reserve [Line Items] | |||
Total estimated expenses | 219 | $ 3,500 | |
Total pre-tax expense incurred | 546 | 327 | |
Estimated remaining expense at March 31, 2018 | $ 2,954 | $ 3,173 |
Restructuring - Accrued Restruc
Restructuring - Accrued Restructuring Costs (Details) - Technical Nonwovens - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Restructuring Reserve [Roll Forward] | ||
Balance | $ 333 | |
Pre-tax restructuring expenses, excluding depreciation | 469 | |
Cash paid | (320) | $ (3,500) |
Balance | $ 482 | $ 333 |
Employer Sponsored Benefit Pl56
Employer Sponsored Benefit Plans - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Cost of sales | $ 152,153 | $ 124,989 |
Selling, product development and administrative expenses | 25,471 | 25,350 |
Contributions made by company to domestic pension plan | 1,200 | $ 1,200 |
Accounting Standards Update 2017-07 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Cost of sales | 100 | |
Selling, product development and administrative expenses | 100 | |
Minimum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Expected employer contributions during remainder of fiscal year | 3,000 | |
Maximum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Expected employer contributions during remainder of fiscal year | $ 4,000 |
Employer Sponsored Benefit Pl57
Employer Sponsored Benefit Plans - Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Components of net periodic benefit cost | ||
Interest cost | $ 470 | $ 514 |
Expected return on assets | (650) | (594) |
Amortization of actuarial loss | 256 | 273 |
Net periodic benefit cost | $ 76 | $ 193 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | ||
Effective tax rate for income from continuing operations (as a percent) | 16.10% | 17.60% |
Tax benefits from stock compensation | $ (0.3) | $ (1.6) |
Earnings Per Share - Narrative
Earnings Per Share - Narrative (Details) - shares | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Earnings Per Share [Abstract] | ||
Stock excluded from computation of diluted earnings per share (shares) | 137,709 | 38,280 |
Earnings Per Share - Reconcilia
Earnings Per Share - Reconciliation for Basic and Diluted Earnings Per Share (Details) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Earnings Per Share [Abstract] | ||
Basic average common shares outstanding | 17,164 | 16,983 |
Effect of dilutive options and restricted stock awards (shares) | 175 | 301 |
Diluted average common shares outstanding | 17,339 | 17,284 |
Segment Information - Consolida
Segment Information - Consolidated Net Sales by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Net sales | $ 191,660 | $ 165,487 |
Operating Segments | Performance Materials | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Net sales | 30,693 | 28,751 |
Operating Segments | Performance Materials | Filtration | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Net sales | 20,690 | 18,846 |
Operating Segments | Performance Materials | Thermal Insulation | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Net sales | 7,507 | 7,425 |
Operating Segments | Performance Materials | Life Sciences Filtration | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Net sales | 2,496 | 2,480 |
Operating Segments | Technical Nonwovens | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Net sales | 67,541 | 58,918 |
Operating Segments | Technical Nonwovens | Industrial Filtration | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Net sales | 40,231 | 34,214 |
Operating Segments | Technical Nonwovens | Advanced Materials | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Net sales | 27,310 | 24,704 |
Operating Segments | Thermal Acoustical Solutions | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Net sales | 101,437 | 84,785 |
Operating Segments | Thermal Acoustical Solutions | Parts | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Net sales | 88,122 | 81,814 |
Operating Segments | Thermal Acoustical Solutions | Tooling | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Net sales | 13,315 | 2,971 |
Eliminations and Other | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Net sales | $ (8,011) | $ (6,967) |
Segment Information - Operating
Segment Information - Operating Income by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Consolidated Operating Income | $ 14,036 | $ 15,148 |
Technical Nonwovens | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Intercompany revenue | 7,100 | 6,300 |
Operating Segments | Performance Materials | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Consolidated Operating Income | 2,641 | 1,658 |
Operating Segments | Technical Nonwovens | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Consolidated Operating Income | 5,006 | 4,668 |
Operating Segments | Thermal Acoustical Solutions | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Consolidated Operating Income | 12,614 | 14,796 |
Corporate Office Expenses | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Consolidated Operating Income | $ (6,225) | (5,974) |
Accounting Standards Update 2017-07 | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Other expense, net | $ 200 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) $ in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||
Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2017CAD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Dec. 31, 2016USD ($) | Jul. 07, 2016USD ($) | |
Rochester, New Hampshire | |||||||||
Loss Contingencies [Line Items] | |||||||||
Expense associated with expected costs of site investigation | $ 0.1 | $ 0.2 | |||||||
Rochester, New Hampshire | Environmental Contamination | |||||||||
Loss Contingencies [Line Items] | |||||||||
Accrual for environmental liability | $ 0 | ||||||||
Reduction to accrual for environmental liability, payments | 0.2 | ||||||||
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 | $ 3 | $ 2.3 | |||||||
Environmental remediation indemnity secured by general escrow account | 14 | 10.9 | |||||||
Environmental remediation indemnity secured by general escrow account, reduced amount after share purchase agreement | $ 7 | $ 5.4 | |||||||
Texel | Quebec, Canada | Environmental Contamination | |||||||||
Loss Contingencies [Line Items] | |||||||||
Accrual for environmental liability | 0.4 | $ 0.9 | |||||||
Accrual for environmental liability, revision of estimate | 0.4 | ||||||||
Reduction to accrual for environmental liability, payments | $ 0.4 | 0.7 | |||||||
Accrual for environmental liability, including revision (fully offset) | $ 0.8 | $ 1.5 | |||||||
Forecast | Rochester, New Hampshire | |||||||||
Loss Contingencies [Line Items] | |||||||||
Expense associated with expected costs of site investigation | $ 0.2 |
Changes in Accumulated Other 64
Changes in Accumulated Other Comprehensive Income (Loss) - Summary (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Balance at beginning of period | $ 353,396 | |
Other Comprehensive Income | 2,647 | $ 2,729 |
Amounts reclassified from accumulated other comprehensive loss | 198 | 172 |
Balance at end of period | 369,833 | |
Loss reclassified from AOCI for defined benefit pension plans | 200 | 200 |
Tax benefit reclassified from AOCI for defined benefit pension plans | 100 | 100 |
Total Accumulated Other Comprehensive (Loss) Income | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Balance at beginning of period | (20,148) | (47,950) |
Balance at end of period | (17,303) | (45,049) |
Foreign Currency Translation Adjustment | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Balance at beginning of period | (2,221) | (27,885) |
Other Comprehensive Income | 2,545 | 2,729 |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 |
Balance at end of period | 324 | (25,156) |
Defined Benefit Pension Adjustment | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Balance at beginning of period | (18,049) | (20,065) |
Other Comprehensive Income | 0 | 0 |
Amounts reclassified from accumulated other comprehensive loss | 198 | 172 |
Balance at end of period | (17,851) | (19,893) |
Gains and Losses on Cash Flow Hedges | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Balance at beginning of period | 122 | 0 |
Other Comprehensive Income | 102 | 0 |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 |
Balance at end of period | $ 224 | $ 0 |