Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Mar. 01, 2018 | Jun. 30, 2017 | |
Entity Information [Line Items] | |||
Entity Registrant Name | BEL FUSE INC /NJ | ||
Entity Central Index Key | 729,580 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Public Float | $ 273.5 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2017 | ||
Class A Common Stock [Member] | |||
Entity Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 2,174,912 | ||
Class B Common Stock [Member] | |||
Entity Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 9,859,352 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 69,354 | $ 73,411 |
Accounts receivable - less allowance for doubtful accounts of $1,745 and $1,781 at December 31, 2017 and 2016, respectively | 78,808 | 74,416 |
Inventories | 107,719 | 98,871 |
Other current assets | 10,218 | 8,744 |
Total current assets | 266,099 | 255,442 |
Property, plant and equipment, net | 43,495 | 48,755 |
Intangible assets, net | 69,366 | 74,828 |
Goodwill | 20,177 | 17,951 |
Deferred income taxes | 4,155 | 3,410 |
Other assets | 27,973 | 26,354 |
Total assets | 431,265 | 426,740 |
Current liabilities: | ||
Accounts payable | 47,947 | 47,235 |
Accrued expenses | 30,508 | 31,549 |
Current maturities of long-term debt | 2,641 | 11,395 |
Other current liabilities | 6,204 | 2,148 |
Total current liabilities | 87,300 | 92,327 |
Long-term liabilities: | ||
Long-term debt | 120,053 | 129,850 |
Liability for uncertain tax positions | 27,948 | 27,458 |
Minimum pension obligation and unfunded pension liability | 19,134 | 16,900 |
Deferred income taxes | 1,567 | 1,460 |
Other long-term liabilities | 17,303 | 311 |
Total liabilities | 273,305 | 268,306 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Preferred stock, no par value, 1,000,000 shares authorized; none issued | 0 | 0 |
Additional paid-in capital | 28,575 | 27,242 |
Retained earnings | 147,807 | 161,287 |
Accumulated other comprehensive loss | (19,625) | (31,297) |
Total stockholders' equity | 157,960 | 158,434 |
Total liabilities and stockholders' equity | 431,265 | 426,740 |
Class A Common Stock [Member] | ||
Stockholders' equity: | ||
Common Stock | 217 | 217 |
Class B Common Stock [Member] | ||
Stockholders' equity: | ||
Common Stock | $ 986 | $ 985 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Current Assets | ||
Accounts receivable, allowance for doubtful accounts | $ 1,745 | $ 1,781 |
Stockholders' Equity: | ||
Preferred stock, par value (in dollars per share) | $ 0 | $ 0 |
Preferred stock, authorized (in shares) | 1,000,000 | 1,000,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Class A Common Stock [Member] | ||
Stockholders' Equity: | ||
Common stock, par value (in dollars per share) | $ 0.10 | $ 0.10 |
Common stock, authorized (in shares) | 10,000,000 | 10,000,000 |
Common stock, outstanding (in shares) | 2,174,912 | 2,174,912 |
Common stock, treasury shares (in shares) | 1,072,769 | 1,072,769 |
Class B Common Stock [Member] | ||
Stockholders' Equity: | ||
Common stock, par value (in dollars per share) | $ 0.10 | $ 0.10 |
Common stock, authorized (in shares) | 30,000,000 | 30,000,000 |
Common stock, outstanding (in shares) | 9,859,352 | 9,851,652 |
Common stock, treasury shares (in shares) | 3,218,307 | 3,218,307 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Net sales | $ 491,611 | $ 500,153 | $ 567,080 | [1] |
Cost of sales | 389,601 | 400,245 | 458,253 | |
Gross profit | 102,010 | 99,908 | 108,827 | |
Selling, general and administrative expenses | 85,067 | 71,005 | 77,952 | |
Impairment of goodwill and other intangible assets | 0 | 105,972 | 0 | |
Loss (gain) on disposal of property, plant and equipment | 297 | (2,644) | 161 | |
Restructuring charges | 308 | 2,087 | 2,114 | |
Income (loss) from operations | 16,338 | (76,512) | 28,600 | [1] |
Interest expense | (6,802) | (6,662) | (7,588) | |
Interest income and other, net | 107 | 622 | 4,720 | |
Earnings (loss) before provision for (benefit from) income taxes | 9,643 | (82,552) | 25,732 | |
Provision for (benefit from) income taxes | 21,540 | (17,718) | 6,535 | |
Net (loss) earnings available to common shareholders | (11,897) | (64,834) | 19,197 | |
Class A Common Stock [Member] | ||||
Net (loss) earnings available to common shareholders | $ (2,113) | $ (11,408) | $ 3,331 | |
Net (loss) earnings per common share: | ||||
Common shares - basic and diluted (in dollars per share) | $ (0.97) | $ (5.25) | $ 1.53 | |
Weighted-average shares outstanding: | ||||
Common shares - basic and diluted (in shares) | 2,175 | 2,175 | 2,175 | |
Dividends paid per common share: | ||||
Common shares (in dollars per share) | $ 0.24 | $ 0.24 | $ 0.24 | |
Class B Common Stock [Member] | ||||
Net (loss) earnings available to common shareholders | $ (9,784) | $ (53,426) | $ 15,866 | |
Net (loss) earnings per common share: | ||||
Common shares - basic and diluted (in dollars per share) | $ (0.99) | $ (5.48) | $ 1.64 | |
Weighted-average shares outstanding: | ||||
Common shares - basic and diluted (in shares) | 9,857 | 9,749 | 9,698 | |
Dividends paid per common share: | ||||
Common shares (in dollars per share) | $ 0.28 | $ 0.28 | $ 0.28 | |
[1] | (Revised) |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME [Abstract] | |||
Net (loss) earnings | $ (11,897) | $ (64,834) | $ 19,197 |
Other comprehensive income (loss): | |||
Currency translation adjustment, net of taxes of $183, ($648) and ($194) | 12,439 | (9,671) | (9,954) |
Unrealized holding (losses) gains on marketable securities arising during the period, net of taxes of ($177), ($2) and $5 | (279) | (10) | 5 |
Change in unfunded SERP liability, net of taxes of $237, $71 and $2, respectively | (488) | 260 | 21 |
Other comprehensive income (loss): | 11,672 | (9,421) | (9,928) |
Comprehensive (loss) income | $ (225) | $ (74,255) | $ 9,269 |
CONSOLIDATED STATEMENTS OF COM6
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Other comprehensive income (loss): | |||
Currency translation adjustment, tax | $ 183 | $ (648) | $ (194) |
Unrealized (losses) gains on marketable securities arising during the period, tax | (177) | (2) | 5 |
Change in unfunded SERP liability, tax | $ 237 | $ 71 | $ 2 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Class A Common Stock [Member] | Class B Common Stock [Member] | Retained Earnings [Member] | Retained Earnings [Member]Class A Common Stock [Member] | Retained Earnings [Member]Class B Common Stock [Member] | Accumulated Other Comprehensive (Loss) Income [Member] | Common Stock [Member]Class A Common Stock [Member] | Common Stock [Member]Class B Common Stock [Member] | Additional Paid-in Capital [Member] |
Balance at Dec. 31, 2014 | $ 224,273 | $ 213,409 | $ (11,948) | $ 217 | $ 969 | $ 21,626 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Cash dividends declared on common stock | $ (522) | $ (2,713) | $ (522) | $ (2,713) | ||||||
Issuance of restricted common stock | 0 | 8 | (8) | |||||||
Forfeiture of restricted common stock | 0 | (7) | 7 | |||||||
Foreign currency translation adjustment, net of taxes | (9,954) | (9,954) | ||||||||
Unrealized holding gains on marketable securities arising during the year net of taxes | 5 | 5 | ||||||||
Stock-based compensation expense | 2,815 | 2,815 | ||||||||
Change in unfunded SERP liability, net of taxes | 21 | 21 | ||||||||
Net (loss) earnings | 19,197 | 3,331 | 15,866 | 19,197 | ||||||
Balance at Dec. 31, 2015 | 233,122 | 229,371 | (21,876) | 217 | 970 | 24,440 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Cash dividends declared on common stock | (522) | (2,728) | (522) | (2,728) | ||||||
Issuance of restricted common stock | 0 | 18 | (18) | |||||||
Forfeiture of restricted common stock | 0 | (3) | 3 | |||||||
Foreign currency translation adjustment, net of taxes | (9,671) | (9,671) | ||||||||
Unrealized holding gains on marketable securities arising during the year net of taxes | (10) | (10) | ||||||||
Stock-based compensation expense | 2,817 | 2,817 | ||||||||
Change in unfunded SERP liability, net of taxes | 260 | 260 | ||||||||
Net (loss) earnings | (64,834) | (11,408) | (53,426) | (64,834) | ||||||
Balance at Dec. 31, 2016 | 158,434 | 161,287 | (31,297) | 217 | 985 | 27,242 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Reclassification of APIC pool upon adoption of ASU 2016-09 | ASU 2016-09 [Member] | 0 | 1,696 | (1,696) | |||||||
Cash dividends declared on common stock | (522) | (2,757) | $ (522) | $ (2,757) | ||||||
Issuance of restricted common stock | 0 | 5 | (5) | |||||||
Forfeiture of restricted common stock | 0 | (4) | 4 | |||||||
Foreign currency translation adjustment, net of taxes | 12,439 | 12,439 | ||||||||
Unrealized holding gains on marketable securities arising during the year net of taxes | (279) | (279) | ||||||||
Stock-based compensation expense | 3,030 | 3,030 | ||||||||
Change in unfunded SERP liability, net of taxes | (488) | (488) | ||||||||
Net (loss) earnings | (11,897) | $ (2,113) | $ (9,784) | (11,897) | ||||||
Balance at Dec. 31, 2017 | $ 157,960 | $ 147,807 | $ (19,625) | $ 217 | $ 986 | $ 28,575 |
CONSOLIDATED STATEMENTS OF STO8
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY [Abstract] | |||
Foreign currency translation adjustment, tax effect | $ 183 | $ (648) | $ (194) |
Unrealized holding gains (losses) on marketable securities, tax effect | (177) | (2) | 5 |
Change in unfunded SERP liability, tax | $ 237 | $ 71 | $ 2 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Cash flows from operating activities: | ||||
Net (loss) earnings | $ (11,897) | $ (64,834) | $ 19,197 | |
Adjustments to reconcile net (loss) earnings to net cash provided by operating activities: | ||||
Impairment of goodwill and other intangible assets | 0 | 105,972 | 0 | |
Depreciation and amortization | 20,718 | 21,778 | 23,009 | [1] |
Stock-based compensation | 3,030 | 2,817 | 2,815 | |
Amortization of deferred financing costs | 2,259 | 1,804 | 1,432 | |
Deferred income taxes | (315) | (6,401) | (356) | |
Unrealized losses (gains) on foreign currency revaluation | 2,770 | (3,063) | (5,095) | |
Loss (gain) on disposal of property, plant and equipment | 109 | (2,583) | 426 | |
Other, net | 1,897 | 864 | 3,209 | |
Changes in operating assets and liabilities: | ||||
Accounts receivable | (2,948) | 10,803 | 12,187 | |
Inventories | (6,160) | (2,794) | 12,951 | |
Other current assets | (2,423) | (670) | 846 | |
Other assets | (1,621) | 297 | 2,161 | |
Accounts payable | (1,426) | (588) | (10,022) | |
Accrued expenses | (1,861) | (6,120) | (3,113) | |
Other liabilities | 16,566 | (16,565) | (295) | |
Income taxes payable | 5,422 | (2,114) | 6,437 | |
Net cash provided by operating activities | 24,120 | 38,603 | 65,789 | |
Cash flows from investing activities: | ||||
Purchase of property, plant and equipment | (6,425) | (8,223) | (9,891) | [1] |
Purchase of company-owned life insurance | 0 | (2,164) | (2,820) | |
Proceeds from sale of marketable securities | 0 | 2,164 | 2,820 | |
Proceeds from disposal/sale of property, plant and equipment | 76 | 5,839 | 77 | |
Net cash used in investing activities | (6,349) | (2,384) | (9,814) | |
Cash flows from financing activities: | ||||
Dividends paid to common shareholders | (3,281) | (3,245) | (3,238) | |
Deferred financing costs | (2,012) | (718) | (15) | |
Borrowings under revolving credit line | 6,000 | 0 | 12,500 | |
Repayments under revolving credit line | (6,000) | 0 | (35,500) | |
Reduction in notes payable | (225) | (126) | (123) | |
Proceeds from long-term debt | 125,000 | 0 | 0 | |
Repayments of long-term debt | (143,799) | (43,389) | (22,438) | |
Net cash used in financing activities | (24,317) | (47,478) | (48,814) | |
Effect of exchange rate changes on cash | 2,489 | (370) | 741 | |
Net (decrease) increase in cash and cash equivalents | (4,057) | (11,629) | 7,902 | |
Cash and cash equivalents - beginning of year | 73,411 | 85,040 | 77,138 | |
Cash and cash equivalents - end of year | 69,354 | 73,411 | 85,040 | |
Cash paid during the year for: | ||||
Income tax payments, net of refunds received | 756 | 2,459 | 580 | |
Interest payments | $ 4,353 | $ 4,843 | $ 6,153 | |
[1] | (Revised) |
DESCRIPTION OF BUSINESS AND SUM
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2017 | |
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 1. DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Bel Fuse Inc. and subsidiaries ("Bel," the "Company," ) design, manufacture and sell a broad array of products that power, protect and connect electronic circuits. These products are used in the networking, telecommunication, high-speed data transmission, commercial aerospace, military, broadcasting, transportation and consumer electronic industries around the world. We manage our operations geographically through our three reportable operating segments: North America, Asia and Europe. All amounts included in the tables to these notes to consolidated financial statements, except per share amounts, are in thousands. Principles of Consolidation - Use of Estimates - to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. On an on-going basis, we evaluate our estimates, including but not limited to those related to product returns, provisions for bad debt, inventories, goodwill, intangible assets, investments, Supplemental Executive Retirement Plan ("SERP") expense, income taxes, contingencies, litigation and the impact related to tax reform. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions. Cash Equivalents Allowance for Doubtful Accounts Effects of Foreign Currency – In non-U.S. locations that are not considered highly inflationary, we translate the balance sheets at the end of period exchange rates with translation adjustments accumulated within stockholders' equity on our consolidated balance sheets. We translate the statements of operations at the average exchange rates during the applicable period. In connection with foreign currency denominated transactions, including multi-currency intercompany payable and receivable transactions and loans, the Company incurred net realized and unrealized currency exchange (losses) gains of ($2.8) million, $3.1 million and $5.1 million for the years ended December 31, 2017, 2016 and 2015, respectively, were included in SG&A expenses on the consolidated statements of operations. Concentration of Credit Risk - We place temporary cash investments with quality financial institutions and commercial issuers of short-term paper and, by policy, limit the amount of credit exposure in any one financial Inventories Revenue Recognition For certain customers, we provide consigned inventory, either at the customer's facility or at a third-party warehouse. Sales of consigned inventory are recorded when the customer withdraws inventory from consignment . The Company is not contractually obligated to accept returns except for defective product or in instances where the product does not meet the Company's product specifications. However, the Company may permit its customers to return product for other reasons. In these instances, the Company would generally require a significant cancellation penalty payment by the customer. The Company estimates such returns, where applicable, based upon management's evaluation of historical experience, market acceptance of products produced and known negotiations with customers. Such estimates are deducted from sales and provided for at the time revenue is recognized. Product Warranties Goodwill and Identifiable Intangible Assets Identifiable intangible assets consist primarily of patents, licenses, trademarks, trade names, customer lists and relationships, non-compete agreements and technology based intangibles and other contractual agreements. We amortize finite lived identifiable intangible assets over the shorter of their stated or statutory duration or their estimated useful lives, ranging from 2 to 19 years, on a straight-line basis to their estimated residual values and periodically review them for impairment. Total identifiable intangible assets comprise 16.1% and 17.5% in 2017 and 2016, respectively, of our consolidated total assets. We use the acquisition method of accounting for all business combinations and do not amortize goodwill or intangible assets with indefinite useful lives. Goodwill and intangible assets with indefinite useful lives are tested for possible impairment annually during the fourth quarter of each fiscal year or more frequently if events or changes in circumstances indicate that the asset might be impaired. Impairment and Disposal of Long-Lived Assets For indefinite-lived intangible assets, such as trademarks and trade names, each year and whenever impairment indicators are present, we determine the fair value of the asset and record an impairment loss for the excess of book value over the fair value, if any. In addition, in all cases of an impairment review we re-evaluate whether continuing to characterize the asset as indefinite-lived is appropriate. See Note 4, "Goodwill and Other Intangible Assets," for additional details. Depreciation - Income Taxes - We record net deferred tax assets to the extent we believe these assets will more-likely-than-not be realized. In making such determination, we consider all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax planning strategies and recent financial operations. We have established valuation allowances for deferred tax assets that are not likely to be realized. In the event we were to determine that we would be able to realize our deferred income tax assets in the future in excess of our net recorded amount, we would adjust the valuation allowance, which would reduce the provision for income taxes. We establish reserves for tax contingencies when, despite the belief that our tax return positions are fully supported, it is probable that certain positions may be challenged and may not be fully sustained. The tax contingency reserves are analyzed on a quarterly basis and adjusted based upon changes in facts and circumstances, such as the conclusion of federal and state audits, expiration of the statute of limitations for the assessment of tax, case law and emerging legislation. Our effective tax rate includes the effect of tax contingency reserves and changes to the reserves as considered appropriate by management. Earnings per Share The earnings and weighted average shares outstanding used in the computation of basic and diluted earnings per share are as follows: 2017 2016 2015 Numerator: Net (loss) earnings $ (11,897 ) $ (64,834 ) $ 19,197 Less dividends declared: Class A 522 522 522 Class B 2,757 2,728 2,713 Undistributed (loss) earnings $ (15,176 ) $ (68,084 ) $ 15,962 Undistributed (loss) earnings allocation - basic and diluted: Class A undistributed (loss) earnings $ (2,635 ) $ (11,930 ) $ 2,809 Class B undistributed (loss) earnings (12,541 ) (56,154 ) 13,153 Total undistributed (loss) earnings $ (15,176 ) $ (68,084 ) $ 15,962 Net (loss) earnings allocation - basic and diluted: Class A net (loss) earnings $ (2,113 ) $ (11,408 ) $ 3,331 Class B net (loss) earnings (9,784 ) (53,426 ) 15,866 Net (loss) earnings $ (11,897 ) $ (64,834 ) $ 19,197 Denominator: Weighted average shares outstanding: Class A - basic and diluted 2,175 2,175 2,175 Class B - basic and diluted 9,857 9,749 9,698 Net (loss) earnings per share: Class A - basic and diluted $ (0.97 ) $ (5.25 ) $ 1.53 Class B - basic and diluted $ (0.99 ) $ (5.48 ) $ 1.64 Research and Development ("R&D") Fair Value Measurements Level 1 Level 2 Level 3 For financial instruments such as cash and cash equivalents, accounts receivable, accounts payable, accrued expenses and notes payable, the carrying amount approximates fair value because of the short maturities of such instruments. See Note 5, "Fair Value Measurements," for additional disclosures related to fair value measurements. Recently Issued Accounting Standards Recently Adopted Accounting Standards In March 2016, the FASB Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting excess tax benefits and tax deficiencies (including tax benefits of dividends on share-based payment awards) should be recognized as income tax expense or benefit on the statements of operations. Under current GAAP, excess tax benefits are recognized in additional paid-in capital while tax deficiencies are recognized either as an offset to accumulated excess tax benefits, if any, or on the statements of operations. The Company adopted this guidance effective January 1, 2017. Certain provisions required retrospective/modified retrospective transition while others were applied prospectively. In July 2015, the FASB issued ASU 2015-11, Simplifying the Measurement of Inventory In June 2014, the FASB issued ASU 2014-12, Compensation – Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period . The amendment requires that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. A reporting entity should apply existing guidance in Topic 718 as it relates to awards with performance conditions that affect vesting to account for such awards. Compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered. This guidance was adopted by the Company effective January 1, 2016 and it did not In January 2015, the FASB issued ASU 2015-01, Income Statement – Extraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items This guidance was adopted by the Company effective January 1, 2016 and it did not In April 2015, the FASB issued ASU 2015-03, Interest – Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs In September 2015, the FASB issued ASU 2015-16, Simplifying the Accounting for Measurement-Period Adjustments In November 2015, the FASB issued ASU 2015-17, Balance Sheet Classification of Deferred Taxes In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements – Going Concern (Subtopic - 205-40) Accounting Standards Issued But Not Yet Adopted In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) In preparation for adoption of the new guidance, we have reviewed representative samples of contracts and other forms of agreements with customers globally and have evaluated the provisions under the five-step model specified by the new revenue standards. The Company has completed its assessment and identified changes with respect to timing of revenue recognition in arrangements for which the customer takes the Company's products from a facility holding consignment inventory. We will adopt the guidance under the new revenue standards effective January 1, 2018 using the modified retrospective approach by recognizing the cumulative effect of initially applying the new standard as an increase to the opening balance of retained earnings. We expect this adjustment to retained earnings to approximate $2.8 million, with an immaterial impact to our net earnings on an ongoing basis. Apart from this adjustment and the inclusion of additional required disclosures beginning in the Company's Quarterly Report on Form 10-Q for the period ended March 31, 2018, the Company does not expect the adoption of the new revenue standards to have a material impact on its consolidated financial statements. In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory . Current U.S. GAAP prohibits the recognition of current and deferred income taxes for intra-entity asset transfer until the asset has been sold to an is effective for annual reporting periods beginning after December 15, 2017, including interim reporting periods within those annual reporting periods, and should be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. This guidance is not expected to have a material impact on our condensed consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) , to provide a new comprehensive model for lease accounting. Under In January 2016, the FASB issued ASU 2016-01, Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business In January 2017, the FASB issued Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment In March 2017, the FASB issued ASU 2017-07, Compensation – Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost In May 2017, the FASB issued ASU 2017-09, Compensation – Stock Compensation (Topic 718): Scope of Modification Accounting ("ASU 2017-09") |
DISPOSITION - SALE OF NPS
DISPOSITION - SALE OF NPS | 12 Months Ended |
Dec. 31, 2017 | |
DISPOSITION - SALE OF NPS [Abstract] | |
DISPOSITION - SALE OF NPS | 2. DISPOSITION – SALE OF NPS On January 23, 2015, the Company completed the sale of the Network Power Systems ("NPS") product line and related transactions of the acquired Power Solutions business to Unipower LLC ("Unipower") for $9.0 million in cash. The sale also included $1.0 million of escrow pending Unipower's realization of certain sales targets. The net proceeds of $9.0 million from the sale were used to repay outstanding borrowings in accordance with the provisions of the Credit and Security Agreement (see Note 10, "Debt"). The transaction provided that Bel would move processes and people to Unipower under an interim transition services agreement and that Bel would also continue to manufacture the NPS products for up to 24 months under a manufacturing services agreement. As a result of the sale and related transactions, the Company recorded deferred revenue of $9.0 million. Of this amount, the Company has recognized net sales of $4.5 million during each of 2016 and 2015. None of the $1.0 million of escrow was recognized as Unipower did not achieve the sales targets specified in the agreement. In January 2017, the Company extended the manufacturing services agreement with Unipower through mid-2018 at renegotiated pricing by product for that term. |
RESTRUCTURING ACTIVITIES
RESTRUCTURING ACTIVITIES | 12 Months Ended |
Dec. 31, 2017 | |
RESTRUCTURING ACTIVITIES [Abstract] | |
RESTRUCTURING ACTIVITIES | 3. RESTRUCTURING ACTIVITIES Activity and liability balances related to restructuring costs for the years ended December 31, 2016 and 2017 are as follows: 2016 2017 Liability at Cash Payments Liability at Cash Payments Liability at December 31, New and Other December 31, New and Other December 31, 2015 Charges Settlements 2016 Charges Settlements 2017 Severance costs $ 110 $ 1,407 $ (929 ) $ 588 $ 86 $ (674 ) $ - Other restructuring costs - 2 (2 ) - 51 (51 ) - Total $ 110 $ 1,409 $ (931 ) $ 588 $ 137 $ (725 ) $ - |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2017 | |
GOODWILL AND OTHER INTANGIBLE ASSETS [Abstract] | |
GOODWILL AND OTHER INTANGIBLE ASSETS | 4. GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill Goodwill represents the excess of the purchase price and related acquisition costs over the fair value assigned to the net tangible and other intangible assets acquired in a business acquisition. The changes in the carrying value of goodwill classified by our segment reporting structure for the years ended December 31, 2017 and 2016 are as follows: Total North America Asia Europe Balance at January 1, 2016: Goodwill, gross 148,575 63,364 54,532 30,679 Accumulated impairment charges (26,941 ) (14,066 ) (12,875 ) - Goodwill, net $ 121,634 $ 49,298 $ 41,657 $ 30,679 Impairment charge (101,650 ) (40,408 ) (41,633 ) (19,609 ) Foreign currency translation (2,033 ) - (24 ) (2,009 ) Balance at December 31, 2016: Goodwill, gross 146,542 63,364 54,508 28,670 Accumulated impairment charges (128,591 ) (54,474 ) (54,508 ) (19,609 ) Goodwill, net $ 17,951 $ 8,890 $ - $ 9,061 Foreign currency translation 2,226 - - 2,226 Balance at December 31, 2017: Goodwill, gross 148,768 63,364 54,508 30,896 Accumulated impairment charges (128,591 ) (54,474 ) (54,508 ) (19,609 ) Goodwill, net $ 20,177 $ 8,890 $ - $ 11,287 As discussed in Note 5, Fair Value Measurements, goodwill is reviewed for impairment on a reporting unit basis annually during the fourth quarter of each year and whenever events or changes in circumstances indicate the carrying value of goodwill may not be recoverable. The goodwill impairment test involves a two-step process. In the first step, the fair value of each reporting unit is compared to its carrying value. If the fair value of the reporting unit exceeds its carrying value, goodwill is not impaired and no further testing is required. If the fair value of the reporting unit is less than the carrying value, the second step of the impairment test must be performed to measure the amount of impairment loss. In the second step, the reporting unit's fair value is allocated to all of the assets and liabilities of the reporting unit, including any unrecognized intangible assets, in a hypothetical analysis that calculates the implied fair value of goodwill in the same manner as if the reporting unit was being acquired in a business combination. If the implied fair value of the reporting unit's goodwill is less than the carrying value, the difference is recorded as an impairment loss and a reduction to goodwill. We estimated the fair value of these reporting units using a weighting of fair values derived from income and market approaches. Under the income approach, we determine the fair value of a reporting unit based on the present value of estimated future cash flows. Cash flow projections are based on management's estimates of revenue growth rates and operating margins, taking into consideration industry and market conditions. The discount rate used is based on a weighted average cost of capital adjusted for the relevant risk associated with the characteristics of the business and the projected cash flows. The market approach estimates fair value based on market multiples of revenue and earnings derived from comparable publicly traded companies with similar operating and investment characteristics as the reporting unit. 2017 Annual Impairment Test During the fourth quarter of 2017, the Company completed step one of our annual goodwill impairment test for our reporting units. We concluded that the fair value of each of the Company's reporting units exceeded the respective carrying values and that there was no indication of impairment. The excess of estimated fair values over carrying value, including goodwill for each of our reporting units that had goodwill as of the 2017 annual impairment test were as follows: Reporting Unit % by Which Estimated Fair Value Exceeds Carrying Value North America 10.2% Europe 8.9% 2016 Interim Impairment Test During the first quarter of 2016, management determined that sufficient indicators of potential impairment existed to require an interim goodwill impairment analysis for all of the Company's reporting units. These indicators included the recent business performance of those reporting units, combined with the long-term market conditions and business trends within the reporting units. Detailed below is a table of key underlying assumptions utilized in the Level 3 fair value estimate calculation for the interim test performed as of March 31, 2016 as compared to those assumptions utilized during the annual valuation performed as of October 1, 2015. Assumptions may vary by reporting unit. The table below shows the range of assumptions utilized across the various reporting units. Goodwill Impairment Analysis Key Assumptions 2016 - Interim 2015 - Annual Income Approach - Discounted Cash Flows (a): Revenue 5-year compound annual growth rate (CAGR) (9.0%) - (0.6%) 2.6% - 2.7% 2016 EBITDA margins (b) 5.1% - 6.6% 7.2% - 8.4% Cost of equity capital 11.6% - 14.7% 12.3% - 16.5% Cost of debt capital 3.6% - 8.5% 2.4% - 5.9% Weighted average cost of capital 10.0% - 14.0% 11.0% - 15.0% Market Approach - Multiples of Guideline Companies (a): Net operating revenue multiples used 0.4 - 0.6 0.4 - 0.5 Operating EBITDA multiples used (b) 5.9 - 6.3 5.0 - 5.3 Invested capital control premium 25% 25% Weighting of Valuation Methods: Income Approach - Discounted Cash Flows 75% 75% Market Approach - Multiples of Guideline Companies 25% 25% (a) Ranges noted reflect assumptions and multiples used throughout the North America, Asia and Europe reporting units (b) EBITDA represents earnings before interest, taxes, depreciation and amortization. EBITDA margin is calculated by dividing EBITDA by net sales. The March 31, 2016 interim impairment test related to the Company's goodwill was performed by reporting unit (North America, Asia and Europe). The valuation test, which heavily weights future discounted cash flow projections, indicated impairment of the goodwill associated with all three of the Company's reporting units. As a result, the Company recorded a provisional non-cash goodwill impairment charges totaling $104.3 million during the first quarter of 2016. During the second quarter of 2016, the Company finalized its interim impairment test, which resulted in a $2.6 million reduction to the provisional impairment charge recorded during the first quarter of 2016. The Company's goodwill associated with its reporting units originated from several of Bel's prior acquisitions, primarily Power Solutions acquired in 2014 and Connectivity Solutions acquired in 2014 (which represented $55.5 million and $55.0 million, respectively, of the carrying value of goodwill at the testing date). The carrying value of the Company's goodwill was $121.6 million at December 31, 2015. As noted above, the fair value determined under step one of the goodwill impairment test completed in the fourth quarter of 2017 exceeded the carrying value for each reporting unit. Therefore, there was no impairment of goodwill. However, if the fair value decreases in future periods, the Company may fail step one of the goodwill impairment test and be required to perform step two. In performing step two, the fair value would have to be allocated to all of the assets and liabilities of the reporting unit. Therefore, any potential goodwill impairment charge would be dependent upon the estimated fair value of the reporting unit at that time and the outcome of step two of the impairment test. The fair values of the assets and liabilities of the reporting unit, including the intangible assets, could vary depending on various factors. The future occurrence of a potential indicator of impairment, such as a decrease in expected net earnings, adverse equity market conditions, a decline in current market multiples, a decline in our common stock price, a significant adverse change in legal factors or business climates, an adverse action or assessment by a regulator, unanticipated competition, strategic decisions made in response to economic or competitive conditions, or a more-likely-than-not expectation that a reporting unit or a significant portion of a reporting unit will be sold or disposed of, could require an interim assessment for some or all of the reporting units before the next required annual assessment. In the event of significant adverse changes of the nature described above, it may be necessary for us to recognize an additional non-cash impairment of goodwill, which could have a material adverse effect on our consolidated financial condition and results of operations. Based on annual impairment tests performed in prior years, there was no indication of goodwill impairment at the October 1, 2015 or the October 1, 2016 testing dates. Other Intangible Assets Other identifiable intangible assets include patents, technology, license agreements, non-compete agreements and trademarks. Amounts assigned to these intangible assets have been determined by management. Management considered a number of factors in determining the allocations, including valuations and independent appraisals. Trademarks have indefinite lives and are reviewed for impairment on an annual basis. Other intangible assets, excluding trademarks, are being amortized over 2 to 19 years. The Company tests indefinite-lived intangible assets for impairment using a fair value approach, the relief-from-royalty method (a form of the income approach). At December 31, 2017, the Company's indefinite-lived intangible assets related to the trademarks acquired in the Power Solutions, Connectivity Solutions, Cinch and Fibreco acquisitions. The components of definite and indefinite-lived intangible assets are as follows: December 31, 2017 December 31, 2016 Gross Carrying Accumulated Net Carrying Gross Carrying Accumulated Net Carrying Amount Amortization Amount Amount Amortization Amount Patents, licenses and technology $ 39,218 $ 14,926 $ 24,292 $ 38,658 $ 11,276 $ 27,382 Customer relationships 44,704 11,478 33,226 43,821 8,302 35,519 Non-compete agreements 2,711 2,711 - 2,667 2,376 291 Trademarks 11,888 40 11,848 11,677 41 11,636 $ 98,521 $ 29,155 $ 69,366 $ 96,823 $ 21,995 $ 74,828 Amortization expense was $6.7 million, $7.0 million and $7.0 million in 2017, 2016 and 2015, respectively. Estimated amortization expense for intangible assets for the next five years is as follows: December 31, Amortization Expense 2018 $ 6,290 2019 6,288 2020 6,251 2021 6,281 2022 4,685 2017 Annual Impairment Test The Company completed its annual indefinite-lived intangible assets impairment test during the fourth quarter of 2017, noting no further impairment. Management has concluded that the fair value of these trademarks exceeded the related carrying values at December 31, 2017 and that there was no indication of impairment. 2016 Interim Impairment Test During the first quarter of 2016, management determined that sufficient indicators of potential impairment existed to require an interim impairment review of our trademarks. Based on the Company's analysis, the fair values of all of the Company's trademarks were lower than the respective carrying values. As a result, in 2016, the Company recorded a non-cash impairment of $4.3 million which is included in impairment of goodwill and other intangible assets on the consolidated statements of operations. Detailed below is a table of key underlying assumptions utilized in the Level 3 fair value estimate calculation of the Company's trademarks for the interim test performed as of March 31, 2016 as compared to those assumptions utilized during the annual valuation performed as of October 1, 2015. Assumptions may vary by individual trademark. The table below shows the range of assumptions utilized across the Company's various trademarks. Trademark Impairment Analysis Key Assumptions 2016 - Interim 2015 - Annual Revenue 5-year compound annual growth rate (CAGR) (0.4%) - 2.7% 0.2% - 4.0% Estimated fair royalty rate 0.25% - 1.5% 0.5% - 2.0% Discount rate 11.0% - 15.0% 12.0% - 14.0% Based on annual impairment tests performed in prior years, there was no indication of indefinite-lived intangible assets impairment at the October 1, 2015 or the October 1, 2016 testing dates. The future occurrence of a potential indicator of impairment, such as those described above, could require an interim assessment for some or all of the Company's trademarks. In such a case, it may be necessary for us to recognize an additional non-cash impairment charge related to our trademarks, which could have a material adverse effect on our consolidated financial condition and results of operations. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2017 | |
FAIR VALUE MEASUREMENTS [Abstract] | |
FAIR VALUE MEASUREMENTS | 5. FAIR VALUE MEASUREMENTS As of December 31, 2017 and 2016, the Company held certain financial assets that are measured at fair value on a recurring basis. These consisted of securities that are among the Company's investments in a rabbi trust which are intended to fund the Company's Supplemental Executive Retirement Plan ("SERP") obligations, and other marketable securities described below. The securities that are held in the rabbi trust are categorized as available-for-sale securities and are included as other assets in the accompanying consolidated balance sheets at December 31, 2017 and 2016. The gross unrealized gains associated with the investments held in the rabbi trust were $0.2 million and $0.7 million at December 31, 2017 and 2016, respectively. Such unrealized gains are included, net of tax, in accumulated other comprehensive income. As of December 31, 2017 and 2016, our available-for-sale securities, which primarily consist of investments held in a rabbi trust of $1.5 million and $1.7 million, respectively, are measured at fair value using quoted prices in active markets for identical assets (Level 1) inputs. The Company does not have any financial assets measured at fair value on a recurring basis categorized as Level 3, and there were no transfers in or out of Level 1, Level 2 or Level 3 during 2017 or 2016. There were no changes to the Company's valuation techniques used to measure asset fair values on a recurring or nonrecurring basis during 2017. There were no financial assets accounted for at fair value on a nonrecurring basis as of December 31, 2017 or 2016. The Company has other financial instruments, such as cash and cash equivalents, accounts receivable, restricted cash, accounts payable, accrued expenses and notes payable, which are not measured at fair value on a recurring basis but are recorded at amounts that approximate fair value due to their liquid or short-term nature. The fair value of the Company's long-term debt is estimated using a discounted cash flow method based on interest rates that are currently available for debt issuances with similar terms and maturities. At December 31, 2017 and 2016, the estimated fair value of total debt was $124.8 million and $144.3 million, respectively, compared to a carrying amount of $122.7 million and $141.2 million, respectively. The Company did not have any other financial liabilities within the scope of the fair value disclosure requirements as of December 31, 2017. Nonfinancial assets and liabilities, such as goodwill, indefinite-lived intangible assets and long-lived assets, are accounted for at fair value on a nonrecurring basis. These items are tested for impairment upon the occurrence of a triggering event or in the case of goodwill, on at least an annual basis. See Note 4, "Goodwill and Other Intangible Assets," for further information about goodwill and other indefinite-lived intangible assets. |
OTHER ASSETS
OTHER ASSETS | 12 Months Ended |
Dec. 31, 2017 | |
OTHER ASSETS [Abstract] | |
OTHER ASSETS | 6. OTHER ASSETS At December 31, 2017 and 2016, the Company has obligations of $19.1 million and $16.9 million, respectively, associated with its SERP. As a means of informally funding these obligations, the Company has invested in life insurance policies related to certain employees and marketable securities held in a rabbi trust. At December 31, 2017 and 2016, these assets had a combined value of $14.0 million and $12.7 million, respectively. Company-Owned Life Insurance Investments in company-owned life insurance policies ("COLI") were made with the intention of utilizing them as a long-term funding source for the Company's SERP obligations. However, the cash surrender value of the COLI does not represent a committed funding source for these obligations. Any proceeds from these policies are subject to claims from creditors. The cash surrender value of the COLI of $12.3 million and $10.9 million at December 31, 2017 and 2016, respectively, is included in other assets in the accompanying consolidated balance sheets. During 2016, the Company sold $2.2 million of marketable securities within the rabbi trust and utilized the proceeds to purchase additional COLI. The volatility in global equity markets in recent years has also had an effect on the cash surrender value of the COLI policies. The Company recorded income (expense) to account for the increase (decrease) in cash surrender value in the amount of $1.3 million, $0.5 million and ($0.1) million during the years ended December 31, 2017, 2016 and 2015, respectively. These fluctuations in the cash surrender value were allocated between cost of sales and selling, general and administrative expenses on the consolidated statements of operations for the years ended December 31, 2017, 2016 and 2015. The allocation is consistent with the costs associated with the long-term employee benefit obligations that the COLI is intended to fund. Other Investments At December 31, 2017 and 2016, the Company held, in the aforementioned rabbi trust, available-for-sale investments at a cost of $1.3 million and $1.0 million, respectively. Together with the COLI described above, these investments are intended to fund the Company's SERP obligations and are classified as other assets in the accompanying consolidated balance sheets. The Company monitors these investments for impairment on an ongoing basis. As discussed above, the Company sold $2.2 million of its SERP investments during 2016. At December 31, 2017 and 2016, the fair market value of these investments was $1.5 million and $1.7 million, respectively. The gross unrealized gain of $0.2 million and $0.7 million at December 31, 2017 and 2016, respectively, has been included, net of tax, in accumulated other comprehensive income (loss). |
INVENTORIES
INVENTORIES | 12 Months Ended |
Dec. 31, 2017 | |
INVENTORIES [Abstract] | |
INVENTORIES | 7. INVENTORIES The components of inventories are as follows: December 31, 2017 2016 Raw materials $ 46,712 $ 43,376 Work in progress 17,688 18,008 Finished goods 43,319 37,487 Inventories $ 107,719 $ 98,871 |
PROPERTY, PLANT AND EQUIPMENT,
PROPERTY, PLANT AND EQUIPMENT, NET | 12 Months Ended |
Dec. 31, 2017 | |
PROPERTY, PLANT AND EQUIPMENT, NET [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT, NET | 8. PROPERTY, PLANT AND EQUIPMENT, NET Property, plant and equipment, net consist of the following: December 31, 2017 2016 Land $ 2,259 $ 2,234 Buildings and improvements 30,761 30,061 Machinery and equipment 122,773 113,780 Construction in progress 1,511 3,029 157,304 149,104 Accumulated depreciation (113,809 ) (100,349 ) Property, plant and equipment, net $ 43,495 $ 48,755 Depreciation expense for the years ended December 31, 2017, 2016 and 2015 was $14.0 million, $14.8 million and $16.0 million, respectively. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2017 | |
INCOME TAXES [Abstract] | |
INCOME TAXES | 9. INCOME TAXES The Company and its subsidiaries file income tax returns in the U.S. federal jurisdiction and various states and foreign jurisdictions. The Company is no longer subject to U.S. federal examinations by tax authorities for years before 2014 and for state examinations before 2011. Regarding foreign subsidiaries, the Company is no longer subject to examination by tax authorities for years before 2007 in Asia and generally 2010 in Europe. At December 31, 2015, the Company was under examination by the taxing authorities in Germany for the tax years 2011 through 2013. This audit concluded in April 2016 and resulted in an immaterial amount of incremental tax expense. At December 31, 2017 and 2016, the Company has approximately $30.4 million and $27.8 million, respectively, of liabilities for uncertain tax positions ($2.5 million and $0.4 million, respectively, is included in other current liabilities on the consolidated balance sheets and $27.9 million and $27.4 million, respectively, is included in liability for uncertain tax positions on the consolidated balance sheets). These amounts, if recognized, would reduce the Company's effective tax rate. As of December 31, 2017, approximately $2.5 In connection with the acquisition of the Power Solutions business in 2014, the Company acquired a liability for additional uncertain tax positions related to various tax matters for the years 2007 through 2013. During the year ended December 31, 2016, a portion of these tax matters was resolved with the taxing authorities which resulted in a reduction of $13.9 million in the liability for uncertain tax positions, of which $11.1 million related to interest and penalties. The Company is actively pursuing resolution of the remaining tax matters. From the date of acquisition through December 31, 2017, the Company has recorded $5.3 million of interest and penalties pertaining to this issue, of which $2.6 million was reversed during 2016 in relation to the settlement of the exposure. The Company will continue to accrue interest and penalties until the issues are resolved. As part of the acquisition of Power Solutions, the Company acquired a $12.0 million liability for uncertain tax positions relating to an ongoing claim by the Arezzo Revenue Agency in Italy concerning certain tax matters related to what was then Power-One Asia Pacific Electronics Shenzhen Co. Ltd. (now Bel Power Solutions Asia Pacific Electronics Shenzhen Co. Ltd.) for the years 2004 through 2006, as further described in Note 16, "Commitments and Contingencies." As a result of the expiration of the statutes of limitations for specific jurisdictions, it is reasonably possible that the related unrecognized benefits for tax positions taken regarding previously filed tax returns may change materially from those recorded as liabilities for uncertain tax positions in the Company's consolidated financial statements at December 31, 2017. A total of $2.5 million of the liability for uncertain tax positions is expected to expire in 2018. Of this amount, and $1.1 million relates to the 2006 tax year and is scheduled to expire on December 31, 2018. A total of $0.4 million of the acquired liability for uncertain tax positions relating to the 2006 tax year was reversed during the year ended December 31, 2017. Additionally, A reconciliation of the beginning and ending amount of the liability for uncertain tax positions, including the portion included in income taxes payable, is as follows : 2017 2016 2015 Liability for uncertain tax positions - January 1 $ 27,828 $ 42,158 $ 39,970 Additions based on tax positions related to the current year 2,168 2,483 3,241 Translation adjustment 804 (881 ) (844 ) Settlement/expiration of statutes of limitations (370 ) (15,932 ) (209 ) Liability for uncertain tax positions - December 31 $ 30,430 $ 27,828 $ 42,158 The Company's policy is to recognize interest and penalties related to uncertain tax positions as a component of the current provision for income taxes. During the years ended December 31, 2017, 2016 and 2015, the Company recognized $0.9 million, $1.3 million and $2.5 million, respectively, in interest and penalties in the consolidated statements of operations. During the years ended December 31, 2017, 2016 and 2015, the Company recognized zero, a benefit of $3.1 million, and less than $0.1 million, respectively, for the reversal of such interest and penalties, relating to the expiration of statues of limitations and settlement of the acquired liability for uncertain tax positions, respectively. The Company has approximately $3.2 million and $2.2 million accrued for the payment of interest and penalties at December 31, 2017 and 2016, respectively, which is included in both income taxes payable and liability for uncertain tax positions in the consolidated balance sheets. The Company's total (loss) earnings before (benefit) provision for income taxes included (loss) earnings from domestic operations of ($2.0) million, ($43.3) million and $6.1 million for 2017, 2016 and 2015, respectively, and earnings (loss) before provision (benefit) for income taxes from foreign operations of $11.7 million, ($39.2) million and $19.6 million for 2017, 2016 and 2015, respectively. The provision (benefit) for income taxes consists of the following: Years Ended December 31, 2017 2016 2015 Current: Federal $ 16,055 $ (1,163 ) $ 1,494 State 115 18 70 Foreign 5,685 (10,172 ) 5,327 21,855 (11,317 ) 6,891 Deferred: Federal (1,312 ) (6,272 ) 1,019 State (329 ) (464 ) (64 ) Foreign 1,326 335 (1,311 ) (315 ) (6,401 ) (356 ) $ 21,540 $ (17,718 ) $ 6,535 A reconciliation of taxes on income computed at the U.S. federal statutory rate to amounts provided is as follows: Years Ended December 31, 2017 2016 2015 $ % $ % $ % Tax (benefit) provision computed at the federal statutory rate $ 3,375 35 % $ (28,893 ) 35 % $ 9,006 35 % Increase (decrease) in taxes resulting from: Different tax rates applicable to foreign operations (2,531 ) (26 %) (4,427 ) 5 % (5,353 ) (21 %) Impairment of goodwill & intangibles - 0 % 30,445 (37 %) - 0 % Increase in (reversal of) liability for uncertain tax positions - net 1,082 11 % (13,974 ) 17 % 3,032 12 % Impact of U.S. Tax Reform 19,171 199 % - 0 % - 0 % Utilization of research and experimentation, solar and foreign tax credits (272 ) (3 %) (349 ) 0 % (349 ) (1 %) State taxes, net of federal benefit (261 ) (3 %) (420 ) 1 % 56 0 % Foreign tax on gain, net of federal benefit 1,223 13 % - 0 % - 0 % Current year (reversal) increase in U.S. valuation allowances - 0 % - 0 % (343 ) (1 %) Federal tax on profit of foreign disregarded entities net of deferred tax - 0 % - 0 % 872 3 % Other, including qualified production activity credits, SERP/COLI income, under/(over) accruals, unrealized foreign exchange gains and amortization of purchase accounting intangibles (247 ) (3 %) (100 ) 0 % (386 ) (2 %) Tax (benefit) provision computed at the Company's effective tax rate $ 21,540 223 % $ (17,718 ) 21 % $ 6,535 25 % The Company holds an offshore business license from the government of Macao. With this license, a Macao offshore company named Bel Fuse (Macao Commercial Offshore) Limited has been established to handle the Company's sales to third-party customers in Asia. Sales by this company consist of products manufactured in the PRC. This company is not subject to Macao corporate profit taxes which are imposed at a tax rate of 12%. Additionally, the Company established TRP International, a China Business Trust ("CBT"), when it acquired the TRP group, as previously discussed. Sales by the CBT consists of products manufactured in the PRC and sold to third-party customers inside and outside Asia. The CBT is not subject to PRC income taxes, which are generally imposed at a tax rate of 25%. As of December 31, 2017, the Company has gross foreign income tax net operating losses ("NOL") of $32.2 million, foreign tax credits of $0.3 million and capital loss carryforwards of $0.2 million which amount to a total of $7.6 million of deferred tax assets. The Company has established valuation allowances totaling $7.3 million against these deferred tax assets. In addition, the Company has gross federal and state income tax NOLs of $14.4 million, including $3.7 million of NOLs acquired from Array and $9.0 million of NOLs acquired from Connectivity Solutions, which amount to $5.3 million of deferred tax assets and tax credit carryforwards of $1.1 million. The Company has established valuation allowances of $0.2 million and $1.0 million, respectively, against these deferred tax assets. The foreign NOL's can be carried forward indefinitely, the NOL acquired from Array expires at various times during 2026 – 2027, the NOL acquired from Connectivity Solutions expire at various times during 2022-2033, the state NOL's expire at various times during – 2031 and the tax credit carryforwards expire at various times during 2025 - 2034. It is the Company's intention to repatriate substantially all net income from its wholly owned PRC subsidiary, Dongguan Transpower Electric Products Co., Ltd, a Chinese Limited Liability Company, to its direct Hong Kong parent Transpower Technologies (Hong Kong) Ltd. Applicable income and dividend withholding taxes have been reflected in the accompanying consolidated statements of operations for the year ended December 31, 2017. However, U.S. deferred taxes need not be provided on these or the majority of the remaining earnings of foreign subsidiaries as we are currently analyzing our global working capital and cash requirements and the potential tax liabilities attributable to a repatriation, including calculating any excess of the amount for financial reporting over the tax basis in our foreign subsidiaries, and have yet to determine whether we plan to repatriate earnings and profits in the future. Due to the enactment of the Tax Act, the Company recorded a U.S. tax expense for the estimate of the one-time deemed repatriation on post 1986 untaxed accumulated foreign earnings and revalued the deferred tax assets and liabilities at the reduced corporate tax rate of 21%. Preliminary calculations of the one-time deemed repatriation estimate the post 1986 untaxed accumulated earnings at $199.9 million which is subject to U.S. income tax of 8% on illiquid assets and 15.5% on liquid assets. The estimated calculation of the transition tax is $17.5 million, of which $16.0 million is payable after tax credits, which is recorded as an incremental U.S. tax expense at December 31, 2017. The Company will elect to pay the transition tax, interest free, over 8 years, which is payable at 8% for each of the first 5 years, 15% in year 6, 20% in year 7 and 25% in year 8. The Company has also recorded a decrease related to deferred tax assets and deferred tax liabilities of $6.3 million and $4.2 million, respectively, with a corresponding net adjustment to deferred income tax expense of $2.1 million for the year ended December 31, 2017 due to the reduction of the corporate tax rate to 21%. The Company's estimates of the adjustments to deferred tax assets and deferred tax liabilities and the calculation of the transition tax are provisional amounts and were calculated using currently available information and a preliminary review of the Tax Act; however, the Company is continuing to evaluate the underlying documentation and revisions to the current calculations may occur. We will recognize any changes to the provisional amounts as we refine our estimates of our cumulative temporary differences, finalize the calculation of the total post 1986 untaxed accumulated foreign earnings and complete our interpretations of the application of the Tax Act. Components of deferred income tax assets are as follows: December 31, 2017 2016 Tax Effect Tax Effect Deferred tax assets: State tax credits $ 1,033 $ 902 Unfunded pension liability 1,139 1,398 Reserves and accruals 2,828 4,335 Federal, state and foreign net operating loss and credit carryforwards 10,524 12,891 Depreciation 917 1,057 Amortization - - Other accruals 4,915 8,278 Total deferred tax assets 21,356 28,861 Deferred tax liabilities: Reserves and accruals - 64 Depreciation 989 3,028 Amortization 8,490 15,361 Other accruals 946 973 Total deferred tax liabilities 10,425 19,426 Valuation allowance 8,343 7,485 Net deferred tax assets/(liabilities) $ 2,588 $ 1,950 The Company continues to monitor proposed legislation affecting the taxation of transfers of U.S. intangible property and other potential tax law changes. |
DEBT
DEBT | 12 Months Ended |
Dec. 31, 2017 | |
DEBT [Abstract] | |
DEBT | 10. DEBT At December 31, 2017 and 2016, borrowings outstanding related to the respective term loans described below were $125.0 million and $143.8 million, respectively, with no borrowings outstanding under the applicable revolver at either date. The unused credit available under the applicable credit facility was $75.0 million at December 31, 2017 and $50.0 million at December 31, 2016. At December 31, 2017 and 2016, the carrying value of the debt on the consolidated balance sheets is reflected net of $2.3 million and $2.6 million, respectively, of deferred financing costs. The interest rate in effect at December 31, 2017 was 3.38%, which consisted of LIBOR of 1.63% plus the Company's margin of 1.75%. The interest rate in effect at December 31, 2016 was 3.06%, which consisted of LIBOR of 0.81% plus the Company's margin of 2.25%. In connection with its outstanding borrowings and amortization of the deferred financing costs described below, the Company incurred $6.8 million and $6.7 million of interest expense during the years ended December 31, 2017 and 2016, respectively. 2014 Credit and Security Agreement On June 19, 2014, the Company entered into a senior Credit and Security Agreement with KeyBank National Association ("KeyBank"), as administrative agent and lender, which was amended on June 30, 2014 principally to add a syndicate of additional lenders (as so amended, the "2014 Credit and Security Agreement" or "2014 CSA"). The 2014 CSA consisted of (i) a $50 million revolving credit facility ("Revolver"), (ii) a $145 million term loan facility ("Term Loan") and (iii) a $70 million delayed draw term loan ("DDTL"). The maturity date of the 2014 CSA was June 18, 2019. The Company recorded $5.8 million of deferred financing costs associated with the 2014 CSA, to be amortized through interest expense over the 5-year term of the agreement. 2016 Amendment In March 2016, the Company amended the terms of the 2014 CSA to modify (i) the date by which the Company was obligated to make excess cash flow prepayments in 2016 on account of excess cash flow achieved for fiscal year 2015, (ii) the method of application of mandatory and voluntary prepayments related to the Company's loans, and (iii) the maximum Leverage Ratio of the Company allowed under the 2014 CSA for the period from the effective date of the amendment through September 2016. In connection with this amendment to the 2014 CSA, the Company paid $0.7 million of deferred financing costs, and the modification to the amortization schedule resulted in $0.5 million of existing deferred financing costs to be accelerated and recorded as interest expense during the first quarter of 2016. 2017 Amendment and Refinancing On December 11, 2017, the Company refinanced the borrowings under the 2014 CSA and further amended its terms as follows: (i) extended the maturity date to December 11, 2022, (ii) revised the amount of the Term Loan to $125.0 million, (iii) increased the amount available under the Revolver to $75.0 million, (iv) reduced mandatory amortization payments over the first four years of the new 5-year term; and (v) reduced the pricing grid related to interest expense, among other items (the "Amended CSA"). Concurrent with its entry into the Amended CSA, the Company's outstanding balances due under the DDTL and Revolver were paid in full. In connection with Amended CSA and related refinancing, the Company paid $1.8 million of deferred financing costs. Due to the magnitude of the modifications to the 2014 CSA, including a reduction in the number of lenders within the syndicate, this modification was deemed an extinguishment of the balances outstanding related to the Term Loan and DDTL that originated under the 2014 CSA. As a result, $1.0 million of existing deferred financing costs were accelerated and recorded as interest expense during the fourth quarter of 2017. Under the terms of the Amended CSA, the Company is entitled, subject to the satisfaction of certain conditions, to request additional commitments under the revolving credit facility or term loans in the aggregate principal amount of up to $75 million to the extent that existing or new lenders agree to provide such additional commitments and/or term loans. The obligations of the Company under the Amended CSA (and previously under the 2014 CSA) are guaranteed by certain of the Company's material U.S. subsidiaries (together with the Company, the "Loan Parties") and are secured by a first priority security interest in substantially all of the existing and future personal property of the Loan Parties, certain material real property of the Loan Parties and certain of the Loan Parties' material U.S. subsidiaries, including 65% of the voting capital stock of certain of the Loan Parties' direct foreign subsidiaries. The borrowings under the 2014 CSA bore interest at a rate equal to, at the Company's option, either (1) LIBOR, plus a margin ranging from 1.75% per annum to 3.00% per annum depending on the Company's leverage ratio, or (2)(a) an "Alternate Base Rate," which is the highest of (i) the federal funds rate plus 0.50%, (ii) KeyBank's prime rate and (iii) the LIBOR rate with a maturity of one month plus 1.00%, plus (b) a margin ranging from 0.75% per annum to 2.00% per annum, depending on the Company's leverage ratio. The borrowings under the Amended CSA bear interest at a rate equal to, at the Company's option, either (1) LIBOR, plus a margin ranging from 1.375% per annum to 2.75% per annum depending on the Company's leverage ratio, or (2)(a) an "Alternate Base Rate," which is the highest of (i) the federal funds rate plus 0.50%, (ii) KeyBank's prime rate and (iii) the LIBOR rate with a maturity of one month plus 1.00%, plus (b) a margin ranging from 0.375% per annum to 1.75% per annum, depending on the Company's leverage ratio. The Amended CSA (and previously, the 2014 CSA) contains customary representations and warranties, covenants and events of default and financial covenants that measure (i) the ratio of the Company's total funded indebtedness, on a consolidated basis, to the amount of the Company's consolidated EBITDA, as defined, ("Leverage Ratio") and (ii) the ratio of the amount of the Company's consolidated EBITDA to the Company's consolidated fixed charges ("Fixed Charge Coverage Ratio"). If an event of default occurs, the lenders under the CSA would be entitled to take various actions, including the acceleration of amounts due thereunder and all actions permitted to be taken by a secured creditor. At December 31, 2017, the Company was in compliance with its debt covenants, including its most restrictive covenant, the Leverage Ratio. Scheduled principal payments of the total debt outstanding at December 31, 2017 are as follows (in thousands): 2018 $ 3,125 2019 3,125 2020 6,250 2021 6,250 2022 106,250 Total long-term debt 125,000 Less: Current maturities of long-term debt (3,125 ) Noncurrent portion of long-term debt $ 121,875 |
ACCRUED EXPENSES
ACCRUED EXPENSES | 12 Months Ended |
Dec. 31, 2017 | |
ACCRUED EXPENSES [Abstract] | |
ACCRUED EXPENSES | 11. ACCRUED EXPENSES Accrued expenses consist of the following: Year Ended December 31, 2017 2016 Sales commissions $ 2,461 $ 2,066 Subcontracting labor 1,408 1,370 Salaries, bonuses and related benefits 16,531 17,587 Warranty accrual 1,769 2,718 Other 8,339 7,808 $ 30,508 $ 31,549 A tabular presentation of the activity within the warranty accrual account for the years ended December 31, 2017 and 2016 is presented below: Year Ended December 31, 2017 2016 Balance, beginning of year $ 2,718 $ 3,659 Charges and costs accrued 268 761 Adjustments related to pre-existing warranties (including changes in estimates) (969 ) (1,063 ) Less: Repair costs incurred (311 ) (544 ) Currency translation 63 (95 ) Balance, end of year $ 1,769 $ 2,718 |
SEGMENTS
SEGMENTS | 12 Months Ended |
Dec. 31, 2017 | |
SEGMENTS [Abstract] | |
SEGMENTS | 12. SEGMENTS The Company operates in one industry with three reportable operating segments, which are geographic in nature. The segments consist of North America, Asia and Europe. The primary criteria by which financial performance is evaluated and resources are allocated are net sales and income from operations. The following is a summary of key financial data: 2017 2016 2015 Net Sales to External Customers: (Revised) North America $ 245,834 $ 256,760 $ 304,328 Asia 167,680 168,458 188,146 Europe 78,097 74,935 74,606 $ 491,611 $ 500,153 $ 567,080 Net Sales: North America $ 257,541 $ 268,935 $ 329,304 Asia 249,506 256,202 295,751 Europe 89,765 86,750 148,735 Less intercompany net sales (105,201 ) (111,734 ) (206,710 ) $ 491,611 $ 500,153 $ 567,080 Income (Loss) from Operations: North America $ 5,147 $ (35,722 ) $ 11,012 Asia 8,964 (24,360 ) 8,175 Europe 2,227 (16,430 ) 9,413 $ 16,338 $ (76,512 ) $ 28,600 Total Assets: North America $ 172,674 $ 168,061 $ 238,930 Asia 152,447 166,028 231,063 Europe 106,144 92,651 108,512 $ 431,265 $ 426,740 $ 578,505 Capital Expenditures: North America $ 1,734 $ 2,641 $ 2,425 Asia 2,617 4,329 4,888 Europe 2,074 1,253 2,578 $ 6,425 $ 8,223 $ 9,891 Depreciation and Amortization Expense: North America $ 10,641 $ 10,522 $ 10,841 Asia 6,728 7,976 8,706 Europe 3,349 3,280 3,462 $ 20,718 $ 21,778 $ 23,009 Net Sales – Segment net sales are attributed to individual segments based on the geographic source of the billing for such customer sales. Intercompany sales include finished products manufactured in foreign countries which are then transferred to the United States and Europe for sale; finished goods manufactured in the United States which are transferred to Europe and Asia for sale; and semi-finished components manufactured in the United States are sold to Asia for further processing. Income from operations represents net sales less operating costs and expenses and does not include any amounts related to intercompany transactions. The following items are included in the segment data presented above: Restructuring Charges 2017 2016 2015 North America $ 4 $ 692 $ 1,452 Asia 167 1,305 352 Europe 137 90 310 $ 308 $ 2,087 $ 2,114 Impairment Charges Entity-Wide Information The following is a summary of entity-wide information related to the Company's net sales to external customers by geographic area and by major product line. 2017 2016 2015 Net Sales by Geographic Location: United States $ 245,834 $ 256,760 $ 304,328 Macao 167,681 163,971 182,248 United Kingdom 24,110 21,953 27,552 Switzerland 15,366 14,048 18,050 Slovakia 14,194 17,622 2,807 Germany 13,857 14,104 16,314 All other foreign countries 10,569 11,695 15,781 Consolidated net sales $ 491,611 $ 500,153 $ 567,080 Net Sales by Major Product Line: Connectivity solutions $ 170,337 $ 168,845 $ 181,697 Magnetic solutions 161,011 155,232 166,182 Power solutions and protection 160,263 176,076 219,201 Consolidated net sales $ 491,611 $ 500,153 $ 567,080 The following is a summary of long-lived assets by geographic area as of December 31, 2017 and 2016: 2017 2016 Long-lived Assets by Geographic Location: United States $ 27,594 $ 29,740 People's Republic of China (PRC) 30,151 32,666 Slovakia 7,625 6,574 Switzerland 3,632 3,593 United Kingdom 1,345 1,419 All other foreign countries 1,121 1,117 Consolidated long-lived assets $ 71,468 $ 75,109 Long-lived assets consist of property, plant and equipment, net and other assets of the Company that are identified with the operations of each geographic area. The territory of Hong Kong became a Special Administrative Region ("SAR") of the PRC in the middle of 1997. The territory of Macao became a SAR of the PRC at the end of 1999. Management cannot presently predict what future impact this will have on the Company, if any, or how the political climate in the PRC will affect the Company's contractual arrangements in the PRC. A significant portion of the Company's manufacturing operations and approximately 36.9% of its identifiable assets are located in Asia. Net Sales to Major Customers The Company had net sales to one customer in excess of ten percent of consolidated net sales in each of 2017, 2016 and 2015. The net sales associated with this customer was $57.7 million in 2017 (11.7% of sales), $59.8 million in 2016 (12.0% of sales) and $74.8 million in 2015 (13.2% of sales). Net sales related to this significant customer were primarily reflected in the Asia operating segment during each of the three years discussed. |
RETIREMENT FUND AND PROFIT SHAR
RETIREMENT FUND AND PROFIT SHARING PLAN | 12 Months Ended |
Dec. 31, 2017 | |
RETIREMENT FUND AND PROFIT SHARING PLAN [Abstract] | |
RETIREMENT FUND AND PROFIT SHARING PLAN | 13. RETIREMENT FUND AND PROFIT SHARING PLAN The Company maintains the Bel Fuse Inc. Employees' Savings Plan, a defined contribution plan that is intended to meet the applicable requirements for tax-qualification under sections 401(a) and (k) of the Internal Revenue Code of 1986, as amended (the "Code"). The Employees' Savings Plan allows eligible employees to voluntarily contribute a percentage of their eligible compensation, subject to Code limitations, which contributions are matched by the Company in an amount equal to 100% of the first 1% of compensation contributed by participants, and 50% of the next 5% of compensation contributed by participants. Effective January 1, 2017, the Company's matching contribution is made in the form of Bel Fuse Inc. Class A common stock. For plan years beginning on January 1, 2012 through December 31, 2016, the Company's matching contributions were made in cash. Prior to January 1, 2012, the Company's matching and profit sharing contributions were made in the form of shares of Bel Fuse Inc. Class A and Class B common stock. The expense for the years ended December 31, 2017, 2016 and 2015 amounted to $1.2 million, $1.1 million and $1.2 million, respectively. As of December 31, 2017, the plan owned 67,891 and 144,276 shares of Bel Fuse Inc. Class A and Class B common stock, respectively. The Company's subsidiaries in Asia have a retirement fund covering substantially all of their Hong Kong based full-time employees. Eligible employees contribute up to 5% of salary to the fund. In addition, the Company must contribute a minimum of 5% of eligible salary, as determined by Hong Kong government regulations. The Company currently contributes 7% of eligible salary in cash or Company stock. The expense for the years ended December 31, 2017, 2016 and 2015 amounted to approximately $0.3 million in each year. As of December 31, 2017, the plan owned 3,323 and 17,342 shares of Bel Fuse Inc. Class A and Class B common stock, respectively. The Company maintains a SERP, which is designed to provide a limited group of key management and other key employees of the Company supplemental retirement and death benefits. . The SERP initially became effective in The Plan is unfunded. Benefits under the SERP are payable from the general assets of the Company, but the Company has established a rabbi trust which includes certain life insurance policies in effect on participants as well as other investments to partially cover the Company's obligations under the Plan. See Note 6, "Other Assets," for further information on these assets. The benefits available under the SERP vary according to when and how the participant terminates employment with the Company. If a participant retires (with the prior written consent of the Company) on his normal retirement date (65 years old, 20 years of service, and 5 years of Plan participation), his normal retirement benefit under the Plan would be annual payments equal to 40% of his average base compensation (calculated using compensation from the highest five consecutive calendar years of Plan participation), payable in monthly installments for the remainder of his life. If a participant retires early from the Company (55 years old, 20 years of service, and five years of Plan participation), his early retirement benefit under the Plan would be an amount (i) calculated as if his early retirement date were in fact his normal retirement date, (ii) multiplied by a fraction, with the numerator being the actual years of service the participant has with the Company and the denominator being the years of service the participant would have had if he had retired at age 65, and (iii) actuarially reduced to reflect the early retirement date. If a participant dies prior to receiving 120 monthly payments under the Plan, his beneficiary would be entitled to continue receiving benefits for the shorter of (i) the time necessary to complete 120 monthly payments or (ii) 60 months. If a participant dies while employed by the Company, his beneficiary would receive, as a survivor benefit, an annual amount equal to (i) 100% of the participant's annual base salary at date of death for one year, and (ii) 50% of the participant's annual base salary at date of death for each of the following four years, each payable in monthly installments. The Plan also provides for disability benefits, and a forfeiture of benefits if a participant terminates employment for reasons other than those contemplated under the Plan. The expense related to the Plan for the years ended December 31, 2017, 2016 and 2015 amounted to $1.7 million, $1.6 million and $1.5 million, respectively. Net Periodic Benefit Cost 2017 2016 2015 Service Cost $ 700 $ 593 $ 552 Interest Cost 673 659 567 Net amortization 375 391 366 Net periodic benefit cost $ 1,748 $ 1,643 $ 1,485 Obligations and Funded Status 2017 2016 Fair value of plan assets, January 1 $ - $ - Company contributions 240 129 Benefits paid (240 ) (129 ) Fair value of plan assets, December 31 - - Benefit obligation, January 1 16,900 15,576 Service cost 700 593 Interest cost 673 659 Benefits paid (240 ) (129 ) Plan amendments 198 487 Actuarial (gains) losses 903 (286 ) Benefit obligation, December 31 19,134 16,900 Underfunded status, December 31 $ (19,134 ) $ (16,900 ) The Company has recorded the 2017 and 2016 underfunded status as a long-term liability on the consolidated balance sheets. The accumulated benefit obligation for the SERP was $16.1 million as of December 31, 2017 and $13.8 million as of December 31, 2016. The estimated net loss and prior service cost for the defined benefit pension plan that will be amortized from accumulated other comprehensive loss into net periodic benefit cost over the next fiscal year is $0.4 million. The Company expects to make contributions of $0.3 million to the SERP in 2018. The Company had no net transition assets or obligations recognized as an adjustment to other comprehensive income and does not anticipate any plan assets being returned to the Company during 2018, as the plan has no assets. The following benefit payments, which reflect expected future service, are expected to be paid: Years Ending December 31, 2018 $ 317 2019 564 2020 622 2021 622 2222 909 2023 - 2027 5,193 The following gross amounts are recognized net of tax in accumulated other comprehensive loss: 2017 2016 Prior service cost $ 1,135 $ 1,172 Net loss 3,732 2,970 $ 4,867 $ 4,142 Actuarial Assumptions The weighted average assumptions used in determining the periodic net cost and benefit obligation information related to the SERP are as follows: 2017 2016 2015 Net periodic benefit cost Discount rate 4.00% 4.25% 4.00% Rate of compensation increase 3.00% 3.00% 3.00% Benefit obligation Discount rate 3.50% 4.00% 4.25% Rate of compensation increase 3.00% 3.00% 3.00% |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2017 | |
SHARE-BASED COMPENSATION [Abstract] | |
SHARE-BASED COMPENSATION | 14. SHARE-BASED COMPENSATION The Company has (the " ") which provides for the granting of "Incentive Stock Options" within the meaning of Section 422 of the Internal Revenue Code of 1986, as amended The Company believes that such awards better align the interest of its employees with those of its shareholders. The 2011 Equity Compensation Plan provides for the issuance of 1.4 million shares of the Company's Class B common stock. At December 31, 2017, 592,100 shares remained available for future issuance under the 2011 Equity Compensation Plan. The Company records compensation expense in its consolidated statements of operations related to employee stock-based options and awards. The aggregate pretax compensation cost recognized for stock-based compensation amounted to approximately $3.0 million, $2.8 million and $2.8 million for 2017, 2016 and 2015, respectively, and related solely to restricted stock awards Restricted Stock Awards The Company provides common stock awards to certain officers and key employees. The Company grants these awards, at its discretion, from the shares available under the Program. Unless otherwise provided at the date of grant or unless subsequently accelerated, the shares awarded are typically earned in 25% increments on the second, third, fourth and fifth anniversaries of the award and are distributed provided the employee has remained employed by the Company through such anniversary dates; otherwise the unearned shares are forfeited. The market value of these shares at the date of award is recorded as compensation expense on the straight-line method over the applicable vesting period from the respective award dates, as adjusted for forfeitures of unvested awards. During 2017, 2016 and 2015, the Company issued 46,400 shares, 180,000 shares and 84,000 shares of the Company's Class B common stock, respectively, under a restricted stock plan to various officers and employees. A summary of the restricted stock activity under the Program as of December 31, 2017 is presented below: Weighted Average Restricted Stock Weighted Average Remaining Awards Shares Award Price Contractual Term Outstanding at January 1, 2017 558,600 $ 22.64 3.1 years Granted 46,400 24.05 Vested (141,800 ) 21.59 Forfeited (38,700 ) 21.70 Outstanding at December 31, 2017 424,500 $ 23.23 3.0 years As of December 31, 2017, there was $6.6 million of total pretax unrecognized compensation cost included within additional paid-in capital related to non-vested stock based compensation arrangements granted under the restricted stock award plan. That cost is expected to be recognized over a period of 4.9 years. This expense is recorded in cost of sales and SG&A expense based upon the employment classification of the award recipients. The Company's policy is to issue new shares to satisfy restricted stock awards. Currently the Company believes that substantially all restricted stock awards will vest. |
COMMON STOCK
COMMON STOCK | 12 Months Ended |
Dec. 31, 2017 | |
COMMON STOCK [Abstract] | |
COMMON STOCK | 15. COMMON STOCK As of December 31, 2017, according to regulatory filings, there was one shareholder of the Company's common stock (other than shareholders subject to specific exceptions) with ownership in excess of 10% of Class A outstanding shares with no ownership of the Company's Class B common stock. In accordance with the Company's certificate of incorporation, the Class B Protection clause is triggered if a shareholder owns 10% or more of the outstanding Class A common stock and does not own an equal or greater percentage of all then outstanding shares of both Class A and Class B common stock (all of which common stock must have been acquired after the date of the 1998 recapitalization). In such a circumstance, such shareholder must, within 90 days of the trigger date, purchase Class B common shares, in an amount and at a price determined in accordance with a formula described in the Company's certificate of incorporation, or forfeit its right to vote its Class A common shares. As of December 31, 2017, to the Company's knowledge, this shareholder had not purchased any Class B shares to comply with these requirements. In order to vote its shares at Bel's next shareholders' meeting, this shareholder must either purchase the required number of Class B common shares or sell or otherwise transfer Class A common shares until its Class A holdings are under 10%. As of December 31, 2017, to the Company's knowledge, this shareholder owned 23.2% of the Company's Class A common stock in the aggregate and had not taken steps to either purchase the required number of Class B common shares or sell or otherwise transfer Class A common shares until its Class A holdings fall below 10%. Unless and until this situation is satisfied in a manner permitted by the Company's Restated Certificate of Incorporation, the subject shareholder will not be permitted to vote its shares of common stock. Throughout 2017, 2016 and 2015, the Company declared cash dividends on a quarterly basis at a rate of $0.06 per Class A share of common stock and $0.07 per Class B share of common stock. The Company declared and paid cash dividends totaling $3.3 million in 2017 and $3.2 million in each of 2016 and 2015. There are no contractual restrictions on the Company's ability to pay dividends, provided that the Company is not in default under its credit agreements immediately before such payment and after giving effect to such payment. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2017 | |
COMMITMENTS AND CONTINGENCIES [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 16. COMMITMENTS AND CONTINGENCIES Leases The Company leases various facilities under operating leases expiring through August 2027. Some of these leases require the Company to pay certain executory costs (such as insurance and maintenance). Future minimum lease payments for operating leases are approximately as follows: Year Ending December 31, 2018 $ 5,819 2019 4,194 2020 3,717 2021 3,112 2022 1,357 Thereafter 448 $ 18,647 Rental expense for all leases was approximately $8.2 million, $7.9 million and $8.8 million for the years ended December 31, 2017, 2016 and 2015, respectively. Other Commitments The Company submits purchase orders for raw materials to various vendors throughout the year for current production requirements, as well as forecasted requirements. Certain of these purchase orders relate to special purpose material and, as such, the Company may incur penalties if an order is cancelled. The Company had outstanding purchase orders related to raw materials in the amount of $45.4 million and $31.0 million at December 31, 2017 and December 31, 2016, respectively. The Company also had outstanding purchase orders related to capital expenditures in the amount of $3.0 million and $2.8 million at December 31, 2017 and December 31, 2016, respectively. Legal Proceedings The Company is party to a number of legal actions and claims, none of which individually or in the aggregate, in the opinion of management, are expected to have a material adverse effect on the Company's consolidated results of operations or financial position. In connection with the acquisition of Power Solutions, there is an ongoing claim by the Arezzo Revenue Agency in Italy concerning certain tax matters related to what was then Power-One Asia Pacific Electronics Shenzhen Co. Ltd. (now Bel Power Solutions Asia Pacific Electronics Shenzhen Co. Ltd, or "BPS China") for the years 2004 to 2006. In September 2012, the Tax Court of Arezzo ruled in favor of BPS China and cancelled the claim. In February 2013, the Arezzo Revenue Agency filed an appeal of the Tax Court's ruling. The hearing of the appeal was held on October 2, 2014. On October 13, 2014, BPS China was informed of the Regional Tax Commission of Florence ruling which was in favor of the Arezzo Revenue Agency and against BPS China. An appeal was filed on July 18, 2015 before the Regional Tax Commission of Florence and rejected. On December 5, 2016, the Arezzo Revenue Agency filed an appeal with the Supreme Court and BPS China filed a counter-appeal on January 4, 2017. The Supreme Court has yet to render its judgment. The estimated liability related to this matter is approximately $12.0 million and has been included as a liability for uncertain tax positions on the accompanying consolidated balance sheets. As Bel is fully indemnified in this matter per the terms of the stock purchase agreement with ABB, a corresponding other asset for indemnification is also included in other assets on the accompanying consolidated balance sheets at September 30, 2017 and December 31, 2016. In 2015, the Company was provided notice of a potential patent infringement claim by Setec Netzwerke AG ("Setec"), a German company, for the alleged infringement of their patent EP 306 934 B1. Setec subsequently filed a lawsuit against the Company and three of its subsidiaries in Dusseldorf, Germany on January 29, 2016 for patent infringement. The Company filed its defense to Setec's complaint and a nullity lawsuit against Setec's patent on August 31, 2016. The Court hearing on infringement took place on March 23, 2017. Upon hearing argument from both parties, the Court issued a decision on April 6, 2017 staying the infringement case pending resolution of the nullity lawsuit. The nullity lawsuit is currently pending before the Patent Court in Munich, Germany. The Company does not have enough information at this time in order to make any further conclusions or assessments as to infringement or any potential damages. The Company is not a party to any other legal proceeding, the adverse outcome of which is likely to have a material adverse effect on the Company's consolidated financial condition or results of operations. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE LOSS | 12 Months Ended |
Dec. 31, 2017 | |
ACCUMULATED OTHER COMPREHENSIVE LOSS [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE LOSS | 17. ACCUMULATED OTHER COMPREHENSIVE LOSS The components of accumulated other comprehensive loss as of December 31, 2017, 2016 and 2015 are summarized below: 2017 2016 2015 Foreign currency translation adjustment $ (16,537 ) $ (28,976 ) $ (19,305 ) Unrealized holding gain on available-for-sale securities, net of taxes of $85, $263 and $265 as of December 31, 2017, 2016 and 2015 145 424 434 Unfunded SERP liability, net of taxes of ($1,635), ($1,398) and ($1,327) as of December 31, 2017, 2016 and 2015 (3,233 ) (2,745 ) (3,005 ) Accumulated other comprehensive loss $ (19,625 ) $ (31,297 ) $ (21,876 ) Changes in accumulated other comprehensive (loss) income by component during the years ended December 31, 2017 and 2016 are as follows. All amounts are net of tax. Unrealized Holding Foreign Currency Gains on Translation Available-for- Unfunded Adjustment Sale Securities SERP Liability Total Balance at January 1, 2016 $ (19,305 ) $ 434 $ (3,005 ) $ (21,876 ) Other comprehensive income (loss) before reclassifications (9,671 ) (10 ) 5 (9,676 ) Amounts reclassified from accumulated other comprehensive income (loss) - - 255 (a) 255 Net current period other comprehensive income (loss) (9,671 ) (10 ) 260 (9,421 ) Balance at December 31, 2016 (28,976 ) 424 (2,745 ) (31,297 ) Other comprehensive income (loss) before reclassifications 12,439 (279 ) (733 ) 11,427 Amounts reclassified from accumulated other comprehensive income (loss) - - 245 (a) 245 Net current period other comprehensive income (loss) 12,439 (279 ) (488 ) 11,672 Balance at December 31, 2017 $ (16,537 ) $ 145 $ (3,233 ) $ (19,625 ) (a) This reclassification relates to the amortization of prior service costs and gains/losses associated with the Company's SERP plan. This expense is allocated between cost of sales and selling, general and administrative expense based upon the employment classification of the plan participants. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2017 | |
RELATED PARTY TRANSACTIONS [Abstract] | |
RELATED PARTY TRANSACTIONS | 18. RELATED PARTY TRANSACTIONS In connection with its acquisition of Power Solutions, the Company acquired a 49% interest in a joint venture in the People's Republic of China ("PRC"). The joint venture purchased raw components and other goods from the Company and sold finished goods to the Company as well as to other third parties. The Company purchased $1.5 million of inventory from the joint venture during the year ended December 31, 2015. The Company did not purchase any inventory from the joint venture during 2016 or 2017. At December 31, 2016, the Company owed the joint venture approximately $0.5 million, which is included in accounts payable on the accompanying consolidated balance sheet. During the fourth quarter of 2017, the Company divested its 49% interest in the joint venture in exchange for an extinguishment of the accounts payable balance of $0.5 million. As the interest in the joint venture had a carrying value of zero, a $0.5 million gain was recorded within cost of sales during 2017 related to this divestiture. |
SELECTED QUARTERLY DATA (UNAUDI
SELECTED QUARTERLY DATA (UNAUDITED) | 12 Months Ended |
Dec. 31, 2017 | |
SELECTED QUARTERLY DATA (UNAUDITED) [Abstract] | |
SELECTED QUARTERLY DATA (UNAUDITED) | 19. SELECTED QUARTERLY DATA (UNAUDITED) Quarterly results for the year ended December 31, 2017 and 2016 are summarized as follows: 2017 First Second Third Fourth Quarter Quarter Quarter Quarter Net sales $ 113,668 $ 131,617 $ 126,386 $ 119,940 Gross profit 23,278 29,042 27,617 22,075 Net earnings (loss) 746 3,120 5,024 (20,787 ) (a) Net earnings (loss) per share: Class A common share - basic and diluted $ 0.05 $ 0.24 $ 0.40 $ (1.66 ) Class B common share - basic and diluted $ 0.06 $ 0.26 $ 0.42 $ (1.74 ) 2016 First Second Third Fourth Quarter Quarter Quarter Quarter Net sales $ 121,182 $ 131,622 $ 128,809 $ 118,539 Gross profit 23,074 25,692 26,575 24,579 Net (loss) earnings (100,696 ) (b) 22,776 (b) 9,710 3,377 Net (loss) earnings per share: Class A common share - basic and diluted $ (8.15 ) $ 1.83 $ 0.78 $ 0.27 Class B common share - basic and diluted $ (8.55 ) $ 1.93 $ 0.82 $ 0.29 (a) The provision for income taxes in the fourth quarter of 2017 included an $18 million impact from the U.S. Tax Cuts and Jobs Act which was enacted on December 22, 2017. This consisted of an estimated transition tax on foreign earnings of approximately $16 million after the utilization of foreign tax credits and $2 million related to the revaluation of the Company's deferred tax assets. (b) In connection with an interim impairment test related to the Company's goodwill and other intangible assets, provisional non-cash impairment charges totaling $104.3 million were recorded during the first quarter of 2016. During the second quarter of 2016, the Company finalized its interim impairment test, which resulted in a $2.6 million reduction to the provisional impairment charge recorded during the first quarter. |
SCHEDULE II - VALUATION AND QUA
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Dec. 31, 2017 | |
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS [Abstract] | |
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | BEL FUSE INC. AND SUBSIDIARIES SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS (Amounts in thousands) Column A Column B Column C Column D Column E Additions Balance at (1) (2) Balance beginning Charged to costs Charged to other Deductions at end Description of period and expenses accounts (b) (a) of period Year ended December 31, 2017: Allowance for doubtful accounts $ 1,781 $ 139 $ (132 ) $ (43 ) $ 1,745 Allowance for excess and obsolete inventory $ 6,263 $ 3,893 $ 661 $ (2,521 ) $ 8,296 Deferred tax assets - valuation allowances $ 7,485 $ 1,599 $ - $ (739 ) $ 8,345 Year ended December 31, 2016: Allowance for doubtful accounts $ 1,747 $ (163 ) $ 281 $ (84 ) $ 1,781 Allowance for excess and obsolete inventory $ 5,268 $ 3,513 $ 185 $ (2,703 ) $ 6,263 Deferred tax assets - valuation allowances $ 6,635 $ 887 $ - $ (37 ) $ 7,485 Year ended December 31, 2015: Allowance for doubtful accounts $ 1,989 $ 295 $ 303 $ (840 ) $ 1,747 Allowance for excess and obsolete inventory $ 6,809 $ 2,186 $ (59 ) $ (3,668 ) $ 5,268 Deferred tax assets - valuation allowances $ 6,692 $ 456 $ - $ (513 ) $ 6,635 (a) Write-offs (b) Includes foreign currency translation adjustments |
DESCRIPTION OF BUSINESS AND S30
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
Principles of Consolidation | Principles of Consolidation - |
Use of Estimates | Use of Estimates - to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. On an on-going basis, we evaluate our estimates, including but not limited to those related to product returns, provisions for bad debt, inventories, goodwill, intangible assets, investments, Supplemental Executive Retirement Plan ("SERP") expense, income taxes, contingencies, litigation and the impact related to tax reform. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions. |
Cash Equivalents | Cash Equivalents |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts |
Effects of Foreign Currency | Effects of Foreign Currency – In non-U.S. locations that are not considered highly inflationary, we translate the balance sheets at the end of period exchange rates with translation adjustments accumulated within stockholders' equity on our consolidated balance sheets. We translate the statements of operations at the average exchange rates during the applicable period. In connection with foreign currency denominated transactions, including multi-currency intercompany payable and receivable transactions and loans, the Company incurred net realized and unrealized currency exchange (losses) gains of ($2.8) million, $3.1 million and $5.1 million for the years ended December 31, 2017, 2016 and 2015, respectively, were included in SG&A expenses on the consolidated statements of operations. |
Concentration of Credit Risk | Concentration of Credit Risk - We place temporary cash investments with quality financial institutions and commercial issuers of short-term paper and, by policy, limit the amount of credit exposure in any one financial |
Inventories | Inventories |
Revenue Recognition | Revenue Recognition For certain customers, we provide consigned inventory, either at the customer's facility or at a third-party warehouse. Sales of consigned inventory are recorded when the customer withdraws inventory from consignment . The Company is not contractually obligated to accept returns except for defective product or in instances where the product does not meet the Company's product specifications. However, the Company may permit its customers to return product for other reasons. In these instances, the Company would generally require a significant cancellation penalty payment by the customer. The Company estimates such returns, where applicable, based upon management's evaluation of historical experience, market acceptance of products produced and known negotiations with customers. Such estimates are deducted from sales and provided for at the time revenue is recognized. |
Product Warranties | Product Warranties |
Goodwill and Identifiable Intangible Assets | Goodwill and Identifiable Intangible Assets Identifiable intangible assets consist primarily of patents, licenses, trademarks, trade names, customer lists and relationships, non-compete agreements and technology based intangibles and other contractual agreements. We amortize finite lived identifiable intangible assets over the shorter of their stated or statutory duration or their estimated useful lives, ranging from 2 to 19 years, on a straight-line basis to their estimated residual values and periodically review them for impairment. Total identifiable intangible assets comprise 16.1% and 17.5% in 2017 and 2016, respectively, of our consolidated total assets. We use the acquisition method of accounting for all business combinations and do not amortize goodwill or intangible assets with indefinite useful lives. Goodwill and intangible assets with indefinite useful lives are tested for possible impairment annually during the fourth quarter of each fiscal year or more frequently if events or changes in circumstances indicate that the asset might be impaired. |
Impairment and Disposal of Long-Lived Assets | Impairment and Disposal of Long-Lived Assets For indefinite-lived intangible assets, such as trademarks and trade names, each year and whenever impairment indicators are present, we determine the fair value of the asset and record an impairment loss for the excess of book value over the fair value, if any. In addition, in all cases of an impairment review we re-evaluate whether continuing to characterize the asset as indefinite-lived is appropriate. See Note 4, "Goodwill and Other Intangible Assets," for additional details. |
Depreciation | Depreciation - |
Income Taxes | Income Taxes - We record net deferred tax assets to the extent we believe these assets will more-likely-than-not be realized. In making such determination, we consider all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax planning strategies and recent financial operations. We have established valuation allowances for deferred tax assets that are not likely to be realized. In the event we were to determine that we would be able to realize our deferred income tax assets in the future in excess of our net recorded amount, we would adjust the valuation allowance, which would reduce the provision for income taxes. We establish reserves for tax contingencies when, despite the belief that our tax return positions are fully supported, it is probable that certain positions may be challenged and may not be fully sustained. The tax contingency reserves are analyzed on a quarterly basis and adjusted based upon changes in facts and circumstances, such as the conclusion of federal and state audits, expiration of the statute of limitations for the assessment of tax, case law and emerging legislation. Our effective tax rate includes the effect of tax contingency reserves and changes to the reserves as considered appropriate by management. |
Earnings per Share | Earnings per Share The earnings and weighted average shares outstanding used in the computation of basic and diluted earnings per share are as follows: 2017 2016 2015 Numerator: Net (loss) earnings $ (11,897 ) $ (64,834 ) $ 19,197 Less dividends declared: Class A 522 522 522 Class B 2,757 2,728 2,713 Undistributed (loss) earnings $ (15,176 ) $ (68,084 ) $ 15,962 Undistributed (loss) earnings allocation - basic and diluted: Class A undistributed (loss) earnings $ (2,635 ) $ (11,930 ) $ 2,809 Class B undistributed (loss) earnings (12,541 ) (56,154 ) 13,153 Total undistributed (loss) earnings $ (15,176 ) $ (68,084 ) $ 15,962 Net (loss) earnings allocation - basic and diluted: Class A net (loss) earnings $ (2,113 ) $ (11,408 ) $ 3,331 Class B net (loss) earnings (9,784 ) (53,426 ) 15,866 Net (loss) earnings $ (11,897 ) $ (64,834 ) $ 19,197 Denominator: Weighted average shares outstanding: Class A - basic and diluted 2,175 2,175 2,175 Class B - basic and diluted 9,857 9,749 9,698 Net (loss) earnings per share: Class A - basic and diluted $ (0.97 ) $ (5.25 ) $ 1.53 Class B - basic and diluted $ (0.99 ) $ (5.48 ) $ 1.64 |
Research and Development ("R&D") | Research and Development ("R&D") |
Fair Value Measurements | Fair Value Measurements Level 1 Level 2 Level 3 For financial instruments such as cash and cash equivalents, accounts receivable, accounts payable, accrued expenses and notes payable, the carrying amount approximates fair value because of the short maturities of such instruments. See Note 5, "Fair Value Measurements," for additional disclosures related to fair value measurements. |
Recently Issued Accounting Standards | Recently Issued Accounting Standards Recently Adopted Accounting Standards In March 2016, the FASB Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting excess tax benefits and tax deficiencies (including tax benefits of dividends on share-based payment awards) should be recognized as income tax expense or benefit on the statements of operations. Under current GAAP, excess tax benefits are recognized in additional paid-in capital while tax deficiencies are recognized either as an offset to accumulated excess tax benefits, if any, or on the statements of operations. The Company adopted this guidance effective January 1, 2017. Certain provisions required retrospective/modified retrospective transition while others were applied prospectively. In July 2015, the FASB issued ASU 2015-11, Simplifying the Measurement of Inventory In June 2014, the FASB issued ASU 2014-12, Compensation – Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period . The amendment requires that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. A reporting entity should apply existing guidance in Topic 718 as it relates to awards with performance conditions that affect vesting to account for such awards. Compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered. This guidance was adopted by the Company effective January 1, 2016 and it did not In January 2015, the FASB issued ASU 2015-01, Income Statement – Extraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items This guidance was adopted by the Company effective January 1, 2016 and it did not In April 2015, the FASB issued ASU 2015-03, Interest – Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs In September 2015, the FASB issued ASU 2015-16, Simplifying the Accounting for Measurement-Period Adjustments In November 2015, the FASB issued ASU 2015-17, Balance Sheet Classification of Deferred Taxes In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements – Going Concern (Subtopic - 205-40) Accounting Standards Issued But Not Yet Adopted In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) In preparation for adoption of the new guidance, we have reviewed representative samples of contracts and other forms of agreements with customers globally and have evaluated the provisions under the five-step model specified by the new revenue standards. The Company has completed its assessment and identified changes with respect to timing of revenue recognition in arrangements for which the customer takes the Company's products from a facility holding consignment inventory. We will adopt the guidance under the new revenue standards effective January 1, 2018 using the modified retrospective approach by recognizing the cumulative effect of initially applying the new standard as an increase to the opening balance of retained earnings. We expect this adjustment to retained earnings to approximate $2.8 million, with an immaterial impact to our net earnings on an ongoing basis. Apart from this adjustment and the inclusion of additional required disclosures beginning in the Company's Quarterly Report on Form 10-Q for the period ended March 31, 2018, the Company does not expect the adoption of the new revenue standards to have a material impact on its consolidated financial statements. In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory . Current U.S. GAAP prohibits the recognition of current and deferred income taxes for intra-entity asset transfer until the asset has been sold to an is effective for annual reporting periods beginning after December 15, 2017, including interim reporting periods within those annual reporting periods, and should be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. This guidance is not expected to have a material impact on our condensed consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) , to provide a new comprehensive model for lease accounting. Under In January 2016, the FASB issued ASU 2016-01, Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business In January 2017, the FASB issued Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment In March 2017, the FASB issued ASU 2017-07, Compensation – Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost In May 2017, the FASB issued ASU 2017-09, Compensation – Stock Compensation (Topic 718): Scope of Modification Accounting ("ASU 2017-09") |
DESCRIPTION OF BUSINESS AND S31
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
Schedule of earnings and weighted average shares outstanding used in the computation of basic and diluted earnings (loss) per share | The earnings and weighted average shares outstanding used in the computation of basic and diluted earnings per share are as follows: 2017 2016 2015 Numerator: Net (loss) earnings $ (11,897 ) $ (64,834 ) $ 19,197 Less dividends declared: Class A 522 522 522 Class B 2,757 2,728 2,713 Undistributed (loss) earnings $ (15,176 ) $ (68,084 ) $ 15,962 Undistributed (loss) earnings allocation - basic and diluted: Class A undistributed (loss) earnings $ (2,635 ) $ (11,930 ) $ 2,809 Class B undistributed (loss) earnings (12,541 ) (56,154 ) 13,153 Total undistributed (loss) earnings $ (15,176 ) $ (68,084 ) $ 15,962 Net (loss) earnings allocation - basic and diluted: Class A net (loss) earnings $ (2,113 ) $ (11,408 ) $ 3,331 Class B net (loss) earnings (9,784 ) (53,426 ) 15,866 Net (loss) earnings $ (11,897 ) $ (64,834 ) $ 19,197 Denominator: Weighted average shares outstanding: Class A - basic and diluted 2,175 2,175 2,175 Class B - basic and diluted 9,857 9,749 9,698 Net (loss) earnings per share: Class A - basic and diluted $ (0.97 ) $ (5.25 ) $ 1.53 Class B - basic and diluted $ (0.99 ) $ (5.48 ) $ 1.64 |
RESTRUCTURING ACTIVITIES (Table
RESTRUCTURING ACTIVITIES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
RESTRUCTURING ACTIVITIES [Abstract] | |
Activity and liability balances related to restructuring charges | Activity and liability balances related to restructuring costs for the years ended December 31, 2016 and 2017 are as follows: 2016 2017 Liability at Cash Payments Liability at Cash Payments Liability at December 31, New and Other December 31, New and Other December 31, 2015 Charges Settlements 2016 Charges Settlements 2017 Severance costs $ 110 $ 1,407 $ (929 ) $ 588 $ 86 $ (674 ) $ - Other restructuring costs - 2 (2 ) - 51 (51 ) - Total $ 110 $ 1,409 $ (931 ) $ 588 $ 137 $ (725 ) $ - |
GOODWILL AND OTHER INTANGIBLE33
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
GOODWILL AND OTHER INTANGIBLE ASSETS [Abstract] | |
Changes in carrying value of goodwill classified by segment reporting structure | The changes in the carrying value of goodwill classified by our segment reporting structure for the years ended December 31, 2017 and 2016 are as follows: Total North America Asia Europe Balance at January 1, 2016: Goodwill, gross 148,575 63,364 54,532 30,679 Accumulated impairment charges (26,941 ) (14,066 ) (12,875 ) - Goodwill, net $ 121,634 $ 49,298 $ 41,657 $ 30,679 Impairment charge (101,650 ) (40,408 ) (41,633 ) (19,609 ) Foreign currency translation (2,033 ) - (24 ) (2,009 ) Balance at December 31, 2016: Goodwill, gross 146,542 63,364 54,508 28,670 Accumulated impairment charges (128,591 ) (54,474 ) (54,508 ) (19,609 ) Goodwill, net $ 17,951 $ 8,890 $ - $ 9,061 Foreign currency translation 2,226 - - 2,226 Balance at December 31, 2017: Goodwill, gross 148,768 63,364 54,508 30,896 Accumulated impairment charges (128,591 ) (54,474 ) (54,508 ) (19,609 ) Goodwill, net $ 20,177 $ 8,890 $ - $ 11,287 |
Excess of estimated fair values over carrying value including goodwill | The excess of estimated fair values over carrying value, including goodwill for each of our reporting units that had goodwill as of the 2017 annual impairment test were as follows: Reporting Unit % by Which Estimated Fair Value Exceeds Carrying Value North America 10.2% Europe 8.9% |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Components of definite and indefinite-lived intangible assets | The components of definite and indefinite-lived intangible assets are as follows: December 31, 2017 December 31, 2016 Gross Carrying Accumulated Net Carrying Gross Carrying Accumulated Net Carrying Amount Amortization Amount Amount Amortization Amount Patents, licenses and technology $ 39,218 $ 14,926 $ 24,292 $ 38,658 $ 11,276 $ 27,382 Customer relationships 44,704 11,478 33,226 43,821 8,302 35,519 Non-compete agreements 2,711 2,711 - 2,667 2,376 291 Trademarks 11,888 40 11,848 11,677 41 11,636 $ 98,521 $ 29,155 $ 69,366 $ 96,823 $ 21,995 $ 74,828 |
Estimated amortization expense for intangible assets | Estimated amortization expense for intangible assets for the next five years is as follows: December 31, Amortization Expense 2018 $ 6,290 2019 6,288 2020 6,251 2021 6,281 2022 4,685 |
Goodwill [Member] | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Schedule of underlying assumptions utilized in fair value | The table below shows the range of assumptions utilized across the various reporting units. Goodwill Impairment Analysis Key Assumptions 2016 - Interim 2015 - Annual Income Approach - Discounted Cash Flows (a): Revenue 5-year compound annual growth rate (CAGR) (9.0%) - (0.6%) 2.6% - 2.7% 2016 EBITDA margins (b) 5.1% - 6.6% 7.2% - 8.4% Cost of equity capital 11.6% - 14.7% 12.3% - 16.5% Cost of debt capital 3.6% - 8.5% 2.4% - 5.9% Weighted average cost of capital 10.0% - 14.0% 11.0% - 15.0% Market Approach - Multiples of Guideline Companies (a): Net operating revenue multiples used 0.4 - 0.6 0.4 - 0.5 Operating EBITDA multiples used (b) 5.9 - 6.3 5.0 - 5.3 Invested capital control premium 25% 25% Weighting of Valuation Methods: Income Approach - Discounted Cash Flows 75% 75% Market Approach - Multiples of Guideline Companies 25% 25% (a) Ranges noted reflect assumptions and multiples used throughout the North America, Asia and Europe reporting units (b) EBITDA represents earnings before interest, taxes, depreciation and amortization. EBITDA margin is calculated by dividing EBITDA by net sales. |
Trademarks [Member] | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Schedule of underlying assumptions utilized in fair value | The table below shows the range of assumptions utilized across the Company's various trademarks. Trademark Impairment Analysis Key Assumptions 2016 - Interim 2015 - Annual Revenue 5-year compound annual growth rate (CAGR) (0.4%) - 2.7% 0.2% - 4.0% Estimated fair royalty rate 0.25% - 1.5% 0.5% - 2.0% Discount rate 11.0% - 15.0% 12.0% - 14.0% |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
INVENTORIES [Abstract] | |
Components of inventories | The components of inventories are as follows: December 31, 2017 2016 Raw materials $ 46,712 $ 43,376 Work in progress 17,688 18,008 Finished goods 43,319 37,487 Inventories $ 107,719 $ 98,871 |
PROPERTY, PLANT AND EQUIPMENT35
PROPERTY, PLANT AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
PROPERTY, PLANT AND EQUIPMENT, NET [Abstract] | |
Property, plant and equipment | Property, plant and equipment, net consist of the following: December 31, 2017 2016 Land $ 2,259 $ 2,234 Buildings and improvements 30,761 30,061 Machinery and equipment 122,773 113,780 Construction in progress 1,511 3,029 157,304 149,104 Accumulated depreciation (113,809 ) (100,349 ) Property, plant and equipment, net $ 43,495 $ 48,755 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
INCOME TAXES [Abstract] | |
Reconciliation of beginning and ending amount of liability for uncertain tax positions | A reconciliation of the beginning and ending amount of the liability for uncertain tax positions, including the portion included in income taxes payable, is as follows : 2017 2016 2015 Liability for uncertain tax positions - January 1 $ 27,828 $ 42,158 $ 39,970 Additions based on tax positions related to the current year 2,168 2,483 3,241 Translation adjustment 804 (881 ) (844 ) Settlement/expiration of statutes of limitations (370 ) (15,932 ) (209 ) Liability for uncertain tax positions - December 31 $ 30,430 $ 27,828 $ 42,158 |
Provision (benefit) for income taxes | The provision (benefit) for income taxes consists of the following: Years Ended December 31, 2017 2016 2015 Current: Federal $ 16,055 $ (1,163 ) $ 1,494 State 115 18 70 Foreign 5,685 (10,172 ) 5,327 21,855 (11,317 ) 6,891 Deferred: Federal (1,312 ) (6,272 ) 1,019 State (329 ) (464 ) (64 ) Foreign 1,326 335 (1,311 ) (315 ) (6,401 ) (356 ) $ 21,540 $ (17,718 ) $ 6,535 |
Reconciliation of taxes on income computed at the federal statutory rate | A reconciliation of taxes on income computed at the U.S. federal statutory rate to amounts provided is as follows: Years Ended December 31, 2017 2016 2015 $ % $ % $ % Tax (benefit) provision computed at the federal statutory rate $ 3,375 35 % $ (28,893 ) 35 % $ 9,006 35 % Increase (decrease) in taxes resulting from: Different tax rates applicable to foreign operations (2,531 ) (26 %) (4,427 ) 5 % (5,353 ) (21 %) Impairment of goodwill & intangibles - 0 % 30,445 (37 %) - 0 % Increase in (reversal of) liability for uncertain tax positions - net 1,082 11 % (13,974 ) 17 % 3,032 12 % Impact of U.S. Tax Reform 19,171 199 % - 0 % - 0 % Utilization of research and experimentation, solar and foreign tax credits (272 ) (3 %) (349 ) 0 % (349 ) (1 %) State taxes, net of federal benefit (261 ) (3 %) (420 ) 1 % 56 0 % Foreign tax on gain, net of federal benefit 1,223 13 % - 0 % - 0 % Current year (reversal) increase in U.S. valuation allowances - 0 % - 0 % (343 ) (1 %) Federal tax on profit of foreign disregarded entities net of deferred tax - 0 % - 0 % 872 3 % Other, including qualified production activity credits, SERP/COLI income, under/(over) accruals, unrealized foreign exchange gains and amortization of purchase accounting intangibles (247 ) (3 %) (100 ) 0 % (386 ) (2 %) Tax (benefit) provision computed at the Company's effective tax rate $ 21,540 223 % $ (17,718 ) 21 % $ 6,535 25 % |
Components of deferred income tax assets | Components of deferred income tax assets are as follows: December 31, 2017 2016 Tax Effect Tax Effect Deferred tax assets: State tax credits $ 1,033 $ 902 Unfunded pension liability 1,139 1,398 Reserves and accruals 2,828 4,335 Federal, state and foreign net operating loss and credit carryforwards 10,524 12,891 Depreciation 917 1,057 Amortization - - Other accruals 4,915 8,278 Total deferred tax assets 21,356 28,861 Deferred tax liabilities: Reserves and accruals - 64 Depreciation 989 3,028 Amortization 8,490 15,361 Other accruals 946 973 Total deferred tax liabilities 10,425 19,426 Valuation allowance 8,343 7,485 Net deferred tax assets/(liabilities) $ 2,588 $ 1,950 |
DEBT (Tables)
DEBT (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
DEBT [Abstract] | |
Scheduled principal payments of the total debt outstanding | Scheduled principal payments of the total debt outstanding at December 31, 2017 are as follows (in thousands): 2018 $ 3,125 2019 3,125 2020 6,250 2021 6,250 2022 106,250 Total long-term debt 125,000 Less: Current maturities of long-term debt (3,125 ) Noncurrent portion of long-term debt $ 121,875 |
ACCRUED EXPENSES (Tables)
ACCRUED EXPENSES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
ACCRUED EXPENSES [Abstract] | |
Accrued expenses | Accrued expenses consist of the following: Year Ended December 31, 2017 2016 Sales commissions $ 2,461 $ 2,066 Subcontracting labor 1,408 1,370 Salaries, bonuses and related benefits 16,531 17,587 Warranty accrual 1,769 2,718 Other 8,339 7,808 $ 30,508 $ 31,549 |
Schedule of warranty accrual account for the period from the acquisition date | A tabular presentation of the activity within the warranty accrual account for the years ended December 31, 2017 and 2016 is presented below: Year Ended December 31, 2017 2016 Balance, beginning of year $ 2,718 $ 3,659 Charges and costs accrued 268 761 Adjustments related to pre-existing warranties (including changes in estimates) (969 ) (1,063 ) Less: Repair costs incurred (311 ) (544 ) Currency translation 63 (95 ) Balance, end of year $ 1,769 $ 2,718 |
SEGMENTS (Tables)
SEGMENTS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
SEGMENTS [Abstract] | |
Key financial data | The following is a summary of key financial data: 2017 2016 2015 Net Sales to External Customers: (Revised) North America $ 245,834 $ 256,760 $ 304,328 Asia 167,680 168,458 188,146 Europe 78,097 74,935 74,606 $ 491,611 $ 500,153 $ 567,080 Net Sales: North America $ 257,541 $ 268,935 $ 329,304 Asia 249,506 256,202 295,751 Europe 89,765 86,750 148,735 Less intercompany net sales (105,201 ) (111,734 ) (206,710 ) $ 491,611 $ 500,153 $ 567,080 Income (Loss) from Operations: North America $ 5,147 $ (35,722 ) $ 11,012 Asia 8,964 (24,360 ) 8,175 Europe 2,227 (16,430 ) 9,413 $ 16,338 $ (76,512 ) $ 28,600 Total Assets: North America $ 172,674 $ 168,061 $ 238,930 Asia 152,447 166,028 231,063 Europe 106,144 92,651 108,512 $ 431,265 $ 426,740 $ 578,505 Capital Expenditures: North America $ 1,734 $ 2,641 $ 2,425 Asia 2,617 4,329 4,888 Europe 2,074 1,253 2,578 $ 6,425 $ 8,223 $ 9,891 Depreciation and Amortization Expense: North America $ 10,641 $ 10,522 $ 10,841 Asia 6,728 7,976 8,706 Europe 3,349 3,280 3,462 $ 20,718 $ 21,778 $ 23,009 |
Schedule of restructuring charges included in income (loss) from operation | The following restructuring charges are included in income (loss) from operations by segment. See Note 3, "Restructuring Activities," for further information on the Company's restructuring efforts. 2017 2016 2015 North America $ 4 $ 692 $ 1,452 Asia 167 1,305 352 Europe 137 90 310 $ 308 $ 2,087 $ 2,114 |
Entity-wide information net sales to external customers by geographic area and by major product line | The following is a summary of entity-wide information related to the Company's net sales to external customers by geographic area and by major product line. 2017 2016 2015 Net Sales by Geographic Location: United States $ 245,834 $ 256,760 $ 304,328 Macao 167,681 163,971 182,248 United Kingdom 24,110 21,953 27,552 Switzerland 15,366 14,048 18,050 Slovakia 14,194 17,622 2,807 Germany 13,857 14,104 16,314 All other foreign countries 10,569 11,695 15,781 Consolidated net sales $ 491,611 $ 500,153 $ 567,080 Net Sales by Major Product Line: Connectivity solutions $ 170,337 $ 168,845 $ 181,697 Magnetic solutions 161,011 155,232 166,182 Power solutions and protection 160,263 176,076 219,201 Consolidated net sales $ 491,611 $ 500,153 $ 567,080 |
Long-lived assets by geographic area | The following is a summary of long-lived assets by geographic area as of December 31, 2017 and 2016: 2017 2016 Long-lived Assets by Geographic Location: United States $ 27,594 $ 29,740 People's Republic of China (PRC) 30,151 32,666 Slovakia 7,625 6,574 Switzerland 3,632 3,593 United Kingdom 1,345 1,419 All other foreign countries 1,121 1,117 Consolidated long-lived assets $ 71,468 $ 75,109 |
RETIREMENT FUND AND PROFIT SH40
RETIREMENT FUND AND PROFIT SHARING PLAN (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
RETIREMENT FUND AND PROFIT SHARING PLAN [Abstract] | |
Net periodic benefit cost related to the SERP | The net periodic benefit cost related to the SERP consisted of the following components during the years ended December 31, 2017, 2016 and 2015: 2017 2016 2015 Service Cost $ 700 $ 593 $ 552 Interest Cost 673 659 567 Net amortization 375 391 366 Net periodic benefit cost $ 1,748 $ 1,643 $ 1,485 |
Information about changes in plan assets and benefit obligation, the funded status | Summarized information about the changes in plan assets and benefit obligation, the funded status and the amounts recorded at December 31, 2017 and 2016 are as follows: 2017 2016 Fair value of plan assets, January 1 $ - $ - Company contributions 240 129 Benefits paid (240 ) (129 ) Fair value of plan assets, December 31 - - Benefit obligation, January 1 16,900 15,576 Service cost 700 593 Interest cost 673 659 Benefits paid (240 ) (129 ) Plan amendments 198 487 Actuarial (gains) losses 903 (286 ) Benefit obligation, December 31 19,134 16,900 Underfunded status, December 31 $ (19,134 ) $ (16,900 ) |
Expected benefit payments | The following benefit payments, which reflect expected future service, are expected to be paid: Years Ending December 31, 2018 $ 317 2019 564 2020 622 2021 622 2222 909 2023 - 2027 5,193 |
Gross amounts recognized in accumulated other comprehensive loss, net of tax | The following gross amounts are recognized net of tax in accumulated other comprehensive loss: 2017 2016 Prior service cost $ 1,135 $ 1,172 Net loss 3,732 2,970 $ 4,867 $ 4,142 |
Weighted average assumptions used in determining the periodic net cost and benefit obligation related to SERP | The weighted average assumptions used in determining the periodic net cost and benefit obligation information related to the SERP are as follows: 2017 2016 2015 Net periodic benefit cost Discount rate 4.00% 4.25% 4.00% Rate of compensation increase 3.00% 3.00% 3.00% Benefit obligation Discount rate 3.50% 4.00% 4.25% Rate of compensation increase 3.00% 3.00% 3.00% |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
SHARE-BASED COMPENSATION [Abstract] | |
Summary of the restricted stock activity | A summary of the restricted stock activity under the Program as of December 31, 2017 is presented below: Weighted Average Restricted Stock Weighted Average Remaining Awards Shares Award Price Contractual Term Outstanding at January 1, 2017 558,600 $ 22.64 3.1 years Granted 46,400 24.05 Vested (141,800 ) 21.59 Forfeited (38,700 ) 21.70 Outstanding at December 31, 2017 424,500 $ 23.23 3.0 years |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
COMMITMENTS AND CONTINGENCIES [Abstract] | |
Future minimum lease payments for operating leases | Future minimum lease payments for operating leases are approximately as follows: Year Ending December 31, 2018 $ 5,819 2019 4,194 2020 3,717 2021 3,112 2022 1,357 Thereafter 448 $ 18,647 |
ACCUMULATED OTHER COMPREHENSI43
ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
ACCUMULATED OTHER COMPREHENSIVE LOSS [Abstract] | |
Components of accumulated other comprehensive loss | The components of accumulated other comprehensive loss as of December 31, 2017, 2016 and 2015 are summarized below: 2017 2016 2015 Foreign currency translation adjustment $ (16,537 ) $ (28,976 ) $ (19,305 ) Unrealized holding gain on available-for-sale securities, net of taxes of $85, $263 and $265 as of December 31, 2017, 2016 and 2015 145 424 434 Unfunded SERP liability, net of taxes of ($1,635), ($1,398) and ($1,327) as of December 31, 2017, 2016 and 2015 (3,233 ) (2,745 ) (3,005 ) Accumulated other comprehensive loss $ (19,625 ) $ (31,297 ) $ (21,876 ) |
Changes in accumulated other comprehensive (loss) income by component | Changes in accumulated other comprehensive (loss) income by component during the years ended December 31, 2017 and 2016 are as follows. All amounts are net of tax. Unrealized Holding Foreign Currency Gains on Translation Available-for- Unfunded Adjustment Sale Securities SERP Liability Total Balance at January 1, 2016 $ (19,305 ) $ 434 $ (3,005 ) $ (21,876 ) Other comprehensive income (loss) before reclassifications (9,671 ) (10 ) 5 (9,676 ) Amounts reclassified from accumulated other comprehensive income (loss) - - 255 (a) 255 Net current period other comprehensive income (loss) (9,671 ) (10 ) 260 (9,421 ) Balance at December 31, 2016 (28,976 ) 424 (2,745 ) (31,297 ) Other comprehensive income (loss) before reclassifications 12,439 (279 ) (733 ) 11,427 Amounts reclassified from accumulated other comprehensive income (loss) - - 245 (a) 245 Net current period other comprehensive income (loss) 12,439 (279 ) (488 ) 11,672 Balance at December 31, 2017 $ (16,537 ) $ 145 $ (3,233 ) $ (19,625 ) (a) This reclassification relates to the amortization of prior service costs and gains/losses associated with the Company's SERP plan. This expense is allocated between cost of sales and selling, general and administrative expense based upon the employment classification of the plan participants. |
SELECTED QUARTERLY DATA (UNAU44
SELECTED QUARTERLY DATA (UNAUDITED) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
SELECTED QUARTERLY DATA (UNAUDITED) [Abstract] | |
Quarterly results (unaudited) | Quarterly results for the year ended December 31, 2017 and 2016 are summarized as follows: 2017 First Second Third Fourth Quarter Quarter Quarter Quarter Net sales $ 113,668 $ 131,617 $ 126,386 $ 119,940 Gross profit 23,278 29,042 27,617 22,075 Net earnings (loss) 746 3,120 5,024 (20,787 ) (a) Net earnings (loss) per share: Class A common share - basic and diluted $ 0.05 $ 0.24 $ 0.40 $ (1.66 ) Class B common share - basic and diluted $ 0.06 $ 0.26 $ 0.42 $ (1.74 ) 2016 First Second Third Fourth Quarter Quarter Quarter Quarter Net sales $ 121,182 $ 131,622 $ 128,809 $ 118,539 Gross profit 23,074 25,692 26,575 24,579 Net (loss) earnings (100,696 ) (b) 22,776 (b) 9,710 3,377 Net (loss) earnings per share: Class A common share - basic and diluted $ (8.15 ) $ 1.83 $ 0.78 $ 0.27 Class B common share - basic and diluted $ (8.55 ) $ 1.93 $ 0.82 $ 0.29 (a) The provision for income taxes in the fourth quarter of 2017 included an $18 million impact from the U.S. Tax Cuts and Jobs Act which was enacted on December 22, 2017. This consisted of an estimated transition tax on foreign earnings of approximately $16 million after the utilization of foreign tax credits and $2 million related to the revaluation of the Company's deferred tax assets. (b) In connection with an interim impairment test related to the Company's goodwill and other intangible assets, provisional non-cash impairment charges totaling $104.3 million were recorded during the first quarter of 2016. During the second quarter of 2016, the Company finalized its interim impairment test, which resulted in a $2.6 million reduction to the provisional impairment charge recorded during the first quarter. |
DESCRIPTION OF BUSINESS AND S45
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) | 12 Months Ended |
Dec. 31, 2017Segment | |
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
Number of reportable segments | 3 |
DESCRIPTION OF BUSINESS AND S46
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Effects of Foreign Currency, Product Warranties, Depreciation and Goodwill and Identifiable Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |||
Net realized and unrealized currency exchange (losses) gains | $ (2,770) | $ 3,063 | $ 5,095 |
Goodwill and Identifiable Intangible Assets [Abstract] | |||
Percentage of identifiable intangible assets | 16.10% | 17.50% | |
Minimum [Member] | |||
Product Warranty Liability [Line Items] | |||
Standard warranty period of product | 1 year | ||
Goodwill and Identifiable Intangible Assets [Abstract] | |||
Other intangible assets amortization period | 2 years | ||
Maximum [Member] | |||
Product Warranty Liability [Line Items] | |||
Standard warranty period of product | 3 years | ||
Goodwill and Identifiable Intangible Assets [Abstract] | |||
Other intangible assets amortization period | 19 years | ||
Buildings and Leasehold Improvements [Member] | Minimum [Member] | |||
Depreciation [Abstract] | |||
Property, plant and equipment, useful life | 2 years | ||
Buildings and Leasehold Improvements [Member] | Maximum [Member] | |||
Depreciation [Abstract] | |||
Property, plant and equipment, useful life | 33 years | ||
Machinery and Equipment [Member] | Minimum [Member] | |||
Depreciation [Abstract] | |||
Property, plant and equipment, useful life | 3 years | ||
Machinery and Equipment [Member] | Maximum [Member] | |||
Depreciation [Abstract] | |||
Property, plant and equipment, useful life | 15 years |
DESCRIPTION OF BUSINESS AND S47
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||||||||||||
Anti-dilutive securities excluded from earnings per share calculation (in shares) | 0 | 0 | 0 | |||||||||||
Numerator [Abstract] | ||||||||||||||
Net (loss) earnings | $ (20,787) | [1] | $ 5,024 | $ 3,120 | $ 746 | $ 3,377 | $ 9,710 | $ 22,776 | [2] | $ (100,696) | [2] | $ (11,897) | $ (64,834) | $ 19,197 |
Undistributed (loss) earnings | (15,176) | (68,084) | 15,962 | |||||||||||
Class A [Member] | ||||||||||||||
Numerator [Abstract] | ||||||||||||||
Net (loss) earnings | (2,113) | (11,408) | 3,331 | |||||||||||
Less dividends declared | 522 | 522 | 522 | |||||||||||
Undistributed (loss) earnings | $ (2,635) | $ (11,930) | $ 2,809 | |||||||||||
Weighted average shares outstanding [Abstract] | ||||||||||||||
Weighted average shares outstanding (in shares) | 2,175 | 2,175 | 2,175 | |||||||||||
Net (loss) earnings per share [Abstract] | ||||||||||||||
Common share - basic and diluted (in dollars per share) | $ (1.66) | $ 0.40 | $ 0.24 | $ 0.05 | $ 0.27 | $ 0.78 | $ 1.83 | $ (8.15) | $ (0.97) | $ (5.25) | $ 1.53 | |||
Class B [Member] | ||||||||||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||||||||||||
Dividend rate Class B common stock in excess of dividend rate of Class A common stock | 5.00% | 5.00% | 5.00% | |||||||||||
Undistributed earning allocation rate of Class B common stock in excess of Class A common stock, percentage | 5.00% | 5.00% | 5.00% | |||||||||||
Numerator [Abstract] | ||||||||||||||
Net (loss) earnings | $ (9,784) | $ (53,426) | $ 15,866 | |||||||||||
Less dividends declared | 2,757 | 2,728 | 2,713 | |||||||||||
Undistributed (loss) earnings | $ (12,541) | $ (56,154) | $ 13,153 | |||||||||||
Weighted average shares outstanding [Abstract] | ||||||||||||||
Weighted average shares outstanding (in shares) | 9,857 | 9,749 | 9,698 | |||||||||||
Net (loss) earnings per share [Abstract] | ||||||||||||||
Common share - basic and diluted (in dollars per share) | $ (1.74) | $ 0.42 | $ 0.26 | $ 0.06 | $ 0.29 | $ 0.82 | $ 1.93 | $ (8.55) | $ (0.99) | $ (5.48) | $ 1.64 | |||
[1] | The provision for income taxes in the fourth quarter of 2017 included an $18 million impact from the U.S. Tax Cuts and Jobs Act which was enacted on December 22, 2017. This consisted of an estimated transition tax on foreign earnings of approximately $16 million after the utilization of foreign tax credits and $2 million related to the revaluation of the Company's deferred tax assets. | |||||||||||||
[2] | In connection with an interim impairment test related to the Company's goodwill and other intangible assets, provisional non-cash impairment charges totaling $104.3 million were recorded during the first quarter of 2016. During the second quarter of 2016, the Company finalized its interim impairment test, which resulted in a $2.6 million reduction to the provisional impairment charge recorded during the first quarter. |
DESCRIPTION OF BUSINESS AND S48
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Research and Development (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Research and Development ("R&D") [Abstract] | |||
Research and development costs | $ 28.8 | $ 26.7 | $ 27.7 |
DESCRIPTION OF BUSINESS AND S49
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Recently Adopted Accounting Standards (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
ASU 2016-09 [Member] | ||
Summary of Adjustments to Conform to New Guidance [Abstract] | ||
Cumulative effect adjustment | $ 0 | |
ASU 2016-09 [Member] | Retained Earnings [Member] | ||
Summary of Adjustments to Conform to New Guidance [Abstract] | ||
Cumulative effect adjustment | 1,696 | |
ASU 2016-09 [Member] | Additional Paid-in Capital [Member] | ||
Summary of Adjustments to Conform to New Guidance [Abstract] | ||
Cumulative effect adjustment | (1,696) | |
ASU 2015-03 [Member] | ||
Summary of Adjustments to Conform to New Guidance [Abstract] | ||
Deferred financing costs | $ 2,300 | $ 2,600 |
ASU 2014-09 [Member] | Retained Earnings [Member] | Plan [Member] | ||
Summary of Adjustments to Conform to New Guidance [Abstract] | ||
Cumulative effect adjustment | $ 2,800 |
DISPOSITION - SALE OF NPS (Deta
DISPOSITION - SALE OF NPS (Details) - Network Power Systems [Member] - USD ($) $ in Millions | Jan. 23, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Disposition Sale of NPS [Abstract] | ||||
Number of months of manufacturing service agreement | 24 months | |||
Deferred revenue | $ 9 | |||
Disposal of assets, net sales | $ 4.5 | $ 4.5 | ||
Unipower LLC [Member] | ||||
Disposition Sale of NPS [Abstract] | ||||
Proceeds from sale of business | 9 | |||
Escrow on sale of business assets | $ 1 |
RESTRUCTURING ACTIVITIES (Detai
RESTRUCTURING ACTIVITIES (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Activity and liability balances related to restructuring costs [Roll Forward] | ||
Liability, beginning balance | $ 588 | $ 110 |
New charges | 137 | 1,409 |
Cash payment and other settlements | (725) | (931) |
Liability, ending balance | 0 | 588 |
Other restructuring costs | 200 | 700 |
Severance Costs [Member] | ||
Activity and liability balances related to restructuring costs [Roll Forward] | ||
Liability, beginning balance | 588 | 110 |
New charges | 86 | 1,407 |
Cash payment and other settlements | (674) | (929) |
Liability, ending balance | 0 | 588 |
Other Restructuring Costs [Member] | ||
Activity and liability balances related to restructuring costs [Roll Forward] | ||
Liability, beginning balance | 0 | 0 |
New charges | 51 | 2 |
Cash payment and other settlements | (51) | (2) |
Liability, ending balance | $ 0 | $ 0 |
GOODWILL AND OTHER INTANGIBLE52
GOODWILL AND OTHER INTANGIBLE ASSETS, Goodwill (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||
Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |||
Goodwill [Roll Forward] | |||||||
Goodwill, gross beginning of period | $ 148,575 | $ 146,542 | $ 148,575 | ||||
Accumulated impairment charges, beginning of period | (26,941) | (128,591) | (26,941) | ||||
Goodwill, net beginning of period | 121,634 | 17,951 | 121,634 | ||||
Impairment charge | (104,300) | (101,650) | |||||
Foreign currency translation | 2,226 | (2,033) | |||||
Goodwill, gross end of period | 148,768 | 146,542 | $ 148,575 | ||||
Accumulated impairment charges, end of period | (128,591) | (128,591) | (26,941) | ||||
Goodwill, net end of period | 20,177 | $ 17,951 | $ 121,634 | ||||
Fair Value Inputs [Abstract] | |||||||
Decrease in impairment charge | $ (2,600) | ||||||
Trademarks [Member] | Minimum [Member] | |||||||
Fair Value Inputs [Abstract] | |||||||
Revenue 5-year compound annual growth rate (CAGR) | [1] | (0.40%) | [2] | 0.20% | |||
Estimated fair royalty rate | [1] | 0.25% | [2] | 0.50% | |||
Discount rate of fair value inputs | [1] | 11.00% | [2] | 12.00% | |||
Trademarks [Member] | Maximum [Member] | |||||||
Fair Value Inputs [Abstract] | |||||||
Revenue 5-year compound annual growth rate (CAGR) | [1] | 2.70% | [2] | 4.00% | |||
Estimated fair royalty rate | [1] | 1.50% | [2] | 2.00% | |||
Discount rate of fair value inputs | [1] | 15.00% | [2] | 14.00% | |||
Power Solutions [Member] | |||||||
Goodwill [Roll Forward] | |||||||
Goodwill, net beginning of period | 55,500 | ||||||
Goodwill, net end of period | 55,500 | ||||||
Connectivity Solutions [Member] | |||||||
Goodwill [Roll Forward] | |||||||
Goodwill, net beginning of period | $ 55,000 | ||||||
Goodwill, net end of period | 55,000 | ||||||
Income Approach - Discounted Cash Flows [Member] | Goodwill [Member] | |||||||
Fair Value Inputs [Abstract] | |||||||
Weighting of valuation method | [1] | 75.00% | [2] | 75.00% | |||
Income Approach - Discounted Cash Flows [Member] | Goodwill [Member] | Minimum [Member] | |||||||
Fair Value Inputs [Abstract] | |||||||
Revenue 5-year compound annual growth rate (CAGR) | [1],[3] | (9.00%) | [2] | 2.60% | |||
2016 EBITDA margins | [1],[3],[4] | 5.10% | [2] | 7.20% | |||
Cost of equity capital | [1],[3] | 11.60% | [2] | 12.30% | |||
Cost of debt capital | [1],[3] | 3.60% | [2] | 2.40% | |||
Weighted average cost of capital | [1],[3] | 10.00% | [2] | 11.00% | |||
Income Approach - Discounted Cash Flows [Member] | Goodwill [Member] | Maximum [Member] | |||||||
Fair Value Inputs [Abstract] | |||||||
Revenue 5-year compound annual growth rate (CAGR) | [1],[3] | (0.60%) | [2] | 2.70% | |||
2016 EBITDA margins | [1],[3],[4] | 6.60% | [2] | 8.40% | |||
Cost of equity capital | [1],[3] | 14.70% | [2] | 16.50% | |||
Cost of debt capital | [1],[3] | 8.50% | [2] | 5.90% | |||
Weighted average cost of capital | [1],[3] | 14.00% | [2] | 15.00% | |||
Market Approach - Multiples of Guideline Companies [Member] | Goodwill [Member] | |||||||
Fair Value Inputs [Abstract] | |||||||
Invested capital control premium | [1],[3] | 25.00% | [2] | 25.00% | |||
Weighting of valuation method | [1] | 25.00% | [2] | 25.00% | |||
Market Approach - Multiples of Guideline Companies [Member] | Goodwill [Member] | Minimum [Member] | |||||||
Fair Value Inputs [Abstract] | |||||||
Net operating revenue multiples used | [1],[3] | 0.4 | [2] | 0.4 | |||
Operating EBITDA multiples used | [1],[3],[4] | 5.9 | [2] | 5 | |||
Market Approach - Multiples of Guideline Companies [Member] | Goodwill [Member] | Maximum [Member] | |||||||
Fair Value Inputs [Abstract] | |||||||
Net operating revenue multiples used | [1],[3] | 0.6 | [2] | 0.5 | |||
Operating EBITDA multiples used | [1],[3],[4] | 6.3 | [2] | 5.3 | |||
North America [Member] | |||||||
Goodwill [Roll Forward] | |||||||
Goodwill, gross beginning of period | 63,364 | 63,364 | $ 63,364 | ||||
Accumulated impairment charges, beginning of period | (14,066) | (54,474) | (14,066) | ||||
Goodwill, net beginning of period | 49,298 | 8,890 | 49,298 | ||||
Impairment charge | (40,408) | ||||||
Foreign currency translation | 0 | 0 | |||||
Goodwill, gross end of period | 63,364 | 63,364 | $ 63,364 | ||||
Accumulated impairment charges, end of period | (54,474) | (54,474) | (14,066) | ||||
Goodwill, net end of period | $ 8,890 | 8,890 | 49,298 | ||||
Reporting unit, percentage of fair value in excess of carrying amount | 10.20% | ||||||
Asia [Member] | |||||||
Goodwill [Roll Forward] | |||||||
Goodwill, gross beginning of period | 54,532 | $ 54,508 | 54,532 | ||||
Accumulated impairment charges, beginning of period | (12,875) | (54,508) | (12,875) | ||||
Goodwill, net beginning of period | 41,657 | 0 | 41,657 | ||||
Impairment charge | (41,633) | ||||||
Foreign currency translation | 0 | (24) | |||||
Goodwill, gross end of period | 54,508 | 54,508 | 54,532 | ||||
Accumulated impairment charges, end of period | (54,508) | (54,508) | (12,875) | ||||
Goodwill, net end of period | 0 | 0 | 41,657 | ||||
Europe [Member] | |||||||
Goodwill [Roll Forward] | |||||||
Goodwill, gross beginning of period | 30,679 | 28,670 | 30,679 | ||||
Accumulated impairment charges, beginning of period | 0 | (19,609) | 0 | ||||
Goodwill, net beginning of period | $ 30,679 | 9,061 | 30,679 | ||||
Impairment charge | (19,609) | ||||||
Foreign currency translation | 2,226 | (2,009) | |||||
Goodwill, gross end of period | 30,896 | 28,670 | 30,679 | ||||
Accumulated impairment charges, end of period | (19,609) | (19,609) | 0 | ||||
Goodwill, net end of period | $ 11,287 | $ 9,061 | $ 30,679 | ||||
Reporting unit, percentage of fair value in excess of carrying amount | 8.90% | ||||||
[1] | Annual | ||||||
[2] | Interim | ||||||
[3] | Ranges noted reflect assumptions and multiples used throughout the North America, Asia and Europe reporting units | ||||||
[4] | EBITDA represents earnings before interest, taxes, depreciation and amortization. EBITDA margin is calculated by dividing EBITDA by net sales. |
GOODWILL AND OTHER INTANGIBLE53
GOODWILL AND OTHER INTANGIBLE ASSETS, Other Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization expense | $ 6,700 | $ 7,000 | $ 7,000 | |
Intangible assets, impairment charges | $ 4,300 | |||
Components of definite and indefinite-lived intangible assets [Abstract] | ||||
Gross Carrying Amount | 98,521 | 96,823 | ||
Accumulated Amortization | 29,155 | 21,995 | ||
Net Carrying Amount | 69,366 | 74,828 | ||
Estimated amortization expense for intangible assets [Abstract] | ||||
2,018 | 6,290 | |||
2,019 | 6,288 | |||
2,020 | 6,251 | |||
2,021 | 6,281 | |||
2,022 | $ 4,685 | |||
Minimum [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Other intangible assets amortization period | 2 years | |||
Maximum [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Other intangible assets amortization period | 19 years | |||
Patents, Licenses and Technology [Member] | ||||
Components of definite and indefinite-lived intangible assets [Abstract] | ||||
Gross Carrying Amount | $ 39,218 | 38,658 | ||
Accumulated Amortization | 14,926 | 11,276 | ||
Net Carrying Amount | 24,292 | 27,382 | ||
Customer Relationships [Member] | ||||
Components of definite and indefinite-lived intangible assets [Abstract] | ||||
Gross Carrying Amount | 44,704 | 43,821 | ||
Accumulated Amortization | 11,478 | 8,302 | ||
Net Carrying Amount | 33,226 | 35,519 | ||
Non-compete Agreements [Member] | ||||
Components of definite and indefinite-lived intangible assets [Abstract] | ||||
Gross Carrying Amount | 2,711 | 2,667 | ||
Accumulated Amortization | 2,711 | 2,376 | ||
Net Carrying Amount | 0 | 291 | ||
Trademarks [Member] | ||||
Components of definite and indefinite-lived intangible assets [Abstract] | ||||
Gross Carrying Amount | 11,888 | 11,677 | ||
Accumulated Amortization | 40 | 41 | ||
Net Carrying Amount | $ 11,848 | $ 11,636 |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Transfers in out between levels | $ 0 | $ 0 |
Fair value of total debt | 124.8 | 144.3 |
Carrying amount of long-term debt | 122.7 | 141.2 |
Investments held in Rabbi Trust [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities measured at fair value | 1.5 | 1.7 |
Investments held in Rabbi Trust [Member] | SERP [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Gross unrealized gains associated with the investment held in the rabbi trust | 0.2 | 0.7 |
Nonrecurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets accounted at fair value | $ 0 | $ 0 |
OTHER ASSETS (Details)
OTHER ASSETS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Cash surrender value of the COLI | $ 12,300 | $ 10,900 | |
Increase (decrease) in cash surrender value | 1,300 | 500 | $ (100) |
Proceeds from sale of marketable securities | 0 | 2,164 | 2,820 |
Investments held in Rabbi Trust [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Cost of investments | 1,300 | 1,000 | |
Fair value of investments | 1,500 | 1,700 | |
Unrealized gain on investments | 200 | 700 | |
Proceeds from sale of marketable securities | 2,200 | ||
Supplemental Employee Retirement Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Benefit obligation | 19,134 | 16,900 | $ 15,576 |
Value of assets earmarked for SERP use but not restricted to that use | $ 14,000 | 12,700 | |
Proceeds from sale of marketable securities | $ 2,200 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Components of inventories [Abstract] | ||
Raw materials | $ 46,712 | $ 43,376 |
Work in progress | 17,688 | 18,008 |
Finished goods | 43,319 | 37,487 |
Inventories | $ 107,719 | $ 98,871 |
PROPERTY, PLANT AND EQUIPMENT57
PROPERTY, PLANT AND EQUIPMENT, NET (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Property, plant and equipment [Abstract] | |||
Property, plant and equipment, gross | $ 157,304 | $ 149,104 | |
Accumulated depreciation | (113,809) | (100,349) | |
Property, plant and equipment, net | 43,495 | 48,755 | |
Depreciation expense | 14,000 | 14,800 | $ 16,000 |
Land [Member] | |||
Property, plant and equipment [Abstract] | |||
Property, plant and equipment, gross | 2,259 | 2,234 | |
Buildings and Improvements [Member] | |||
Property, plant and equipment [Abstract] | |||
Property, plant and equipment, gross | 30,761 | 30,061 | |
Machinery and Equipment [Member] | |||
Property, plant and equipment [Abstract] | |||
Property, plant and equipment, gross | 122,773 | 113,780 | |
Construction in Progress [Member] | |||
Property, plant and equipment [Abstract] | |||
Property, plant and equipment, gross | $ 1,511 | $ 3,029 |
INCOME TAXES, Uncertain Tax Pos
INCOME TAXES, Uncertain Tax Positions and Interest and Penalties (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Contingency [Line Items] | ||||
Liabilities for uncertain tax positions current | $ 2,500 | $ 400 | ||
Liability for uncertain tax positions noncurrent | 27,948 | 27,458 | ||
Liability for uncertain positions expected to be resolved in next fiscal year | 2,500 | |||
Interest and penalties uncertain tax positions recognized | 900 | 1,300 | $ 2,500 | |
Reconciliation of beginning and ending amount of liability for uncertain tax positions [Roll Forward] | ||||
Liability for uncertain tax positions - beginning of period | 27,828 | 42,158 | 39,970 | |
Additions based on tax positions related to the current year | 2,168 | 2,483 | 3,241 | |
Translation adjustment - increase | 804 | |||
Translation adjustment - decrease | (881) | (844) | ||
Settlement/expiration of statutes of limitations | (370) | (15,932) | (209) | |
Liability for uncertain tax positions - end of period | 30,430 | 27,828 | 42,158 | $ 39,970 |
Interest and Penalties [Abstract] | ||||
Benefit on reversal of interest and penalties | 0 | (3,100) | ||
Accrued interest and penalties uncertain tax positions | 3,200 | 2,200 | ||
Maximum [Member] | ||||
Interest and Penalties [Abstract] | ||||
Benefit on reversal of interest and penalties | $ (100) | |||
Tax Year 2014 [Member] | ||||
Income Tax Contingency [Line Items] | ||||
Liabilities for uncertain tax positions current | 1,400 | |||
Tax Year 2006 [Member] | ||||
Income Tax Contingency [Line Items] | ||||
Liabilities for uncertain tax positions current | 1,100 | |||
Power Solutions [Member] | ||||
Income Tax Contingency [Line Items] | ||||
Reduction relating to settlement with taxing authorities | (13,900) | |||
Reduction relating to interest and penalties uncertain tax positions | (11,100) | |||
Interest and penalties uncertain tax positions recognized | $ 5,300 | |||
Interest and penalties uncertain tax positions recognized reversal | 2,600 | |||
Reconciliation of beginning and ending amount of liability for uncertain tax positions [Roll Forward] | ||||
Additions relating to acquisitions | $ 12,000 | |||
Interest and Penalties [Abstract] | ||||
Interest and penalties uncertain tax positions recognized until various tax matters are resolved | $ 2,100 | |||
Asia [Member] | Power Solutions [Member] | Minimum [Member] | ||||
Income Tax Contingency [Line Items] | ||||
Income tax audit, years under examination | 2,004 | |||
Asia [Member] | Power Solutions [Member] | Maximum [Member] | ||||
Income Tax Contingency [Line Items] | ||||
Income tax audit, years under examination | 2,006 |
INCOME TAXES, Provision (Benefi
INCOME TAXES, Provision (Benefit) for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income (Loss) Before income Taxes [Abstract] | |||
(Loss) earnings before (benefit) provision for income taxes included (loss) earnings from domestic operations | $ (2,000) | $ (43,300) | $ 6,100 |
(Loss) earnings before (benefit) provision for income taxes from foreign operations | 11,700 | (39,200) | 19,600 |
Current [Abstract] | |||
Federal | 16,055 | (1,163) | 1,494 |
State | 115 | 18 | 70 |
Foreign | 5,685 | (10,172) | 5,327 |
Total | 21,855 | (11,317) | 6,891 |
Deferred [Abstract] | |||
Federal | (1,312) | (6,272) | 1,019 |
State | (329) | (464) | (64) |
Foreign | 1,326 | 335 | (1,311) |
Total | (315) | (6,401) | (356) |
Tax (benefit) provision computed at the Company's effective tax rate | 21,540 | (17,718) | 6,535 |
Reconciliation of taxes on income computed at the federal statutory rate [Abstract] | |||
Tax (benefit) provision computed at the federal statutory rate | 3,375 | (28,893) | 9,006 |
Increase (decrease) in taxes resulting from [Abstract] | |||
Different tax rates applicable to foreign operations | (2,531) | (4,427) | (5,353) |
Impairment of goodwill & intangibles | 0 | 30,445 | 0 |
Increase in (reversal of) liability for uncertain tax positions - net | 1,082 | (13,974) | 3,032 |
Impact of U.S. Tax Reform | 19,171 | 0 | 0 |
Utilization of research and experimentation, solar and foreign tax credits | (272) | (349) | (349) |
State taxes, net of federal benefit | (261) | (420) | 56 |
Foreign tax on gain, net of federal benefit | 1,223 | 0 | 0 |
Current year (reversal) increase in U.S. valuation allowances | 0 | 0 | (343) |
Federal tax on profit of foreign disregarded entities net of deferred tax | 0 | 0 | 872 |
Other, including qualified production activity credits, SERP/COLI income, under/(over) accruals, unrealized foreign exchange gains and amortization of purchase accounting intangibles | (247) | (100) | (386) |
Tax (benefit) provision computed at the Company's effective tax rate | $ 21,540 | $ (17,718) | $ 6,535 |
Increase (decrease) in effective tax rate resulting from [Abstract] | |||
Tax provision computed at the federal statutory rate, percentage | 35.00% | 35.00% | 35.00% |
Different tax rates applicable to foreign operations, percentage | (26.00%) | 5.00% | (21.00%) |
Impairment of goodwill & intangibles, percentage | 0.00% | (37.00%) | 0.00% |
Increase in (reversal of) liability for uncertain tax positions - net, percentage | 11.00% | 17.00% | 12.00% |
Impact of U.S. Tax Reform, percentage | 199.00% | 0.00% | 0.00% |
Utilization of research and development, solar and foreign tax credits, percentage | (3.00%) | 0.00% | (1.00%) |
State taxes, net of federal benefit, percentage | (3.00%) | 1.00% | 0.00% |
Foreign tax on gain, net of federal benefit, percentage | 13.00% | 0.00% | 0.00% |
Current year (reversal) increase in U.S. valuation allowance, percentage | 0.00% | 0.00% | (1.00%) |
Federal tax on profit of foreign disregarded entities net of deferred tax, percentage | 0.00% | 0.00% | 3.00% |
Other, including qualified production activity credits, SERP/COLI income, under/(over) accruals, unrealized foreign exchange gains and amortization of purchase accounting intangibles, percentage | (3.00%) | 0.00% | (2.00%) |
Tax (benefit) provision computed at the Company's effective tax rate, percentage | 223.00% | 21.00% | 25.00% |
INCOME TAXES, Tax Credits and N
INCOME TAXES, Tax Credits and Net Operating Losses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Tax Credit Carryforward [Line Items] | |||
Tax provision computed at the federal statutory rate, percentage | 35.00% | 35.00% | 35.00% |
Additional Income Tax Information [Abstract] | |||
Deferred tax assets, net operating loss carryforwards | $ 10,524 | $ 12,891 | |
Federal and State Jurisdiction [Member] | |||
Additional Income Tax Information [Abstract] | |||
Operating loss carryforwards | 14,400 | ||
Tax credit carryforward | 1,100 | ||
Tax credit carryforward, valuation allowance | (1,000) | ||
Federal and State Jurisdiction [Member] | Capital Loss Carryforward [Member] | |||
Additional Income Tax Information [Abstract] | |||
Operating loss carryforwards, valuation allowance | (200) | ||
Federal and State Jurisdiction [Member] | Array [Member] | |||
Additional Income Tax Information [Abstract] | |||
Operating loss carryforwards | 3,700 | ||
Federal and State Jurisdiction [Member] | Connectivity Solutions [Member] | |||
Additional Income Tax Information [Abstract] | |||
Operating loss carryforwards | 9,000 | ||
Deferred tax assets, net operating loss carryforwards | 5,300 | ||
Foreign Jurisdictions [Member] | |||
Additional Income Tax Information [Abstract] | |||
Operating loss carryforwards | 32,200 | ||
Tax credit carryforward | 300 | ||
Operating loss carryforwards, valuation allowance | (7,300) | ||
Deferred tax assets, net operating loss carryforwards | 7,600 | ||
Foreign Jurisdictions [Member] | Capital Loss Carryforward [Member] | |||
Additional Income Tax Information [Abstract] | |||
Tax credit carryforward | $ 200 | ||
Macao [Member] | |||
Tax Credit Carryforward [Line Items] | |||
Tax provision computed at the federal statutory rate, percentage | 12.00% | ||
People's Republic of China (PRC) [Member] | |||
Tax Credit Carryforward [Line Items] | |||
Tax provision computed at the federal statutory rate, percentage | 25.00% |
INCOME TAXES, Income Tax Reform
INCOME TAXES, Income Tax Reform (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Line Items] | |||||
Tax provision computed at the federal statutory rate, percentage | 35.00% | 35.00% | 35.00% | ||
Untaxed accumulated earnings | $ 199.9 | $ 199.9 | |||
Income tax rate on illiquid assets | 8.00% | ||||
Income tax rate on liquid assets | 15.50% | ||||
Estimated transition tax | 17.5 | ||||
Estimated transition tax, after tax credits | 16 | ||||
Number of years of transition tax payable | 8 years | ||||
Transition tax, interest free, payable in first five year | 8.00% | ||||
Transition tax, interest free, payable in sixth year | 15.00% | ||||
Transition tax, interest free, payable in seventh year | 20.00% | ||||
Transition tax, interest free, payable in eighth year | 25.00% | ||||
Decrease related to deferred tax assets | $ 2 | $ 6.3 | |||
Decrease related to deferred tax liabilities | 4.2 | ||||
Net adjustment to deferred income tax expense | $ 2.1 | ||||
Plan [Member] | |||||
Income Tax Disclosure [Line Items] | |||||
Tax provision computed at the federal statutory rate, percentage | 21.00% |
INCOME TAXES, Deferred Income T
INCOME TAXES, Deferred Income Tax Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred tax assets [Abstract] | ||
State tax credits | $ 1,033 | $ 902 |
Unfunded pension liability | 1,139 | 1,398 |
Reserves and accruals | 2,828 | 4,335 |
Deferred tax assets, net operating loss carryforwards | 10,524 | 12,891 |
Depreciation | 917 | 1,057 |
Amortization | 0 | 0 |
Other accruals | 4,915 | 8,278 |
Total deferred tax assets | 21,356 | 28,861 |
Deferred tax liabilities [Abstract] | ||
Reserves and accruals | 0 | 64 |
Depreciation | 989 | 3,028 |
Amortization | 8,490 | 15,361 |
Other accruals | 946 | 973 |
Total deferred tax liabilities | 10,425 | 19,426 |
Valuation allowance | 8,343 | 7,485 |
Net deferred tax assets/(liabilities) | $ 2,588 | $ 1,950 |
DEBT (Details)
DEBT (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2016 | |
Line of Credit Facility [Line Items] | |||||
Deferred financing costs | $ 2,300 | $ 2,300 | $ 2,600 | ||
Amortization of deferred financing costs | 2,259 | 1,804 | $ 1,432 | ||
Debt issuance cost payment | 2,012 | 718 | $ 15 | ||
Scheduled principal payments [Abstract] | |||||
Total long-term debt | 122,700 | 122,700 | 141,200 | ||
Less: Current maturities of long-term debt | (2,641) | (2,641) | (11,395) | ||
Noncurrent portion of long-term debt | $ 120,053 | $ 120,053 | $ 129,850 | ||
KeyBank [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Interest rate on borrowings outstanding | 3.38% | 3.38% | 3.06% | ||
Effective LIBOR rate | 1.63% | 0.81% | |||
Basis spread on variable rate | 1.75% | 2.25% | |||
Interest expense incurred | $ 6,800 | $ 6,700 | |||
Scheduled principal payments [Abstract] | |||||
2,018 | $ 3,125 | 3,125 | |||
2,019 | 3,125 | 3,125 | |||
2,020 | 6,250 | 6,250 | |||
2,021 | 6,250 | 6,250 | |||
2,022 | 106,250 | 106,250 | |||
Total long-term debt | 125,000 | 125,000 | 143,798 | ||
Less: Current maturities of long-term debt | (3,125) | (3,125) | |||
Noncurrent portion of long-term debt | 121,875 | 121,875 | |||
KeyBank [Member] | Revolving Credit Facility [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Line of credit, amount outstanding | 0 | 0 | 0 | ||
Unused borrowing capacity | 75,000 | 75,000 | 50,000 | ||
KeyBank [Member] | 2014 Credit and Security Agreement [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Deferred financing costs | 5,800 | $ 5,800 | |||
Deferred financing costs amortization period | 5 years | ||||
KeyBank [Member] | 2014 Credit and Security Agreement [Member] | LIBOR [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread on variable rate | 1.00% | ||||
Term of variable rate | 1 month | ||||
KeyBank [Member] | 2014 Credit and Security Agreement [Member] | LIBOR [Member] | Minimum [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread on variable rate | 1.75% | ||||
KeyBank [Member] | 2014 Credit and Security Agreement [Member] | LIBOR [Member] | Maximum [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread on variable rate | 3.00% | ||||
KeyBank [Member] | 2014 Credit and Security Agreement [Member] | Federal Funds Rate [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread on variable rate | 0.50% | ||||
KeyBank [Member] | 2014 Credit and Security Agreement [Member] | Alternate Base Rate [Member] | Minimum [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread on variable rate | 0.75% | ||||
KeyBank [Member] | 2014 Credit and Security Agreement [Member] | Alternate Base Rate [Member] | Maximum [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread on variable rate | 2.00% | ||||
KeyBank [Member] | 2014 Credit and Security Agreement [Member] | Revolving Credit Facility [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Maximum borrowing capacity | 50,000 | ||||
KeyBank [Member] | 2014 Credit and Security Agreement [Member] | Term Loan [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Maximum borrowing capacity | 145,000 | ||||
KeyBank [Member] | 2014 Credit and Security Agreement [Member] | Delayed Draw Term Loan [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Maximum borrowing capacity | 70,000 | ||||
KeyBank [Member] | 2016 Amendment [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Deferred financing costs | $ 500 | ||||
Debt issuance cost payment | $ 700 | ||||
KeyBank [Member] | 2017 Amendment and Refinancing [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Amortization of deferred financing costs | 1,000 | ||||
Line of credit facility, maturity date | Dec. 11, 2022 | ||||
Debt issuance cost payment | $ 1,800 | ||||
Mandatory amortization payment period | 4 years | ||||
Additional borrowings | 75,000 | $ 75,000 | |||
Percentage of capital stock of foreign subsidiaries given as collateralized security to line of credit | 65.00% | ||||
KeyBank [Member] | 2017 Amendment and Refinancing [Member] | LIBOR [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread on variable rate | 1.00% | ||||
Term of variable rate | 1 month | ||||
KeyBank [Member] | 2017 Amendment and Refinancing [Member] | LIBOR [Member] | Minimum [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread on variable rate | 1.375% | ||||
KeyBank [Member] | 2017 Amendment and Refinancing [Member] | LIBOR [Member] | Maximum [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread on variable rate | 2.75% | ||||
KeyBank [Member] | 2017 Amendment and Refinancing [Member] | Federal Funds Rate [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread on variable rate | 0.50% | ||||
KeyBank [Member] | 2017 Amendment and Refinancing [Member] | Alternate Base Rate [Member] | Minimum [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread on variable rate | 0.375% | ||||
KeyBank [Member] | 2017 Amendment and Refinancing [Member] | Alternate Base Rate [Member] | Maximum [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread on variable rate | 1.75% | ||||
KeyBank [Member] | 2017 Amendment and Refinancing [Member] | Revolving Credit Facility [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Maximum borrowing capacity | 75,000 | $ 75,000 | |||
KeyBank [Member] | 2017 Amendment and Refinancing [Member] | Term Loan [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Maximum borrowing capacity | $ 125,000 | $ 125,000 |
ACCRUED EXPENSES (Details)
ACCRUED EXPENSES (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
ACCRUED EXPENSES [Abstract] | ||
Sales commissions | $ 2,461 | $ 2,066 |
Subcontracting labor | 1,408 | 1,370 |
Salaries, bonuses and related benefits | 16,531 | 17,587 |
Warranty accrual | 1,769 | 2,718 |
Other | 8,339 | 7,808 |
Accrued expenses | 30,508 | 31,549 |
Warranty Accrual Activity Account [Roll Forward] | ||
Balance, beginning of year | 2,718 | 3,659 |
Charges and costs accrued | 268 | 761 |
Adjustments related to pre-existing warranties (including changes in estimates) | (969) | (1,063) |
Less: Repair costs incurred | (311) | (544) |
Currency translation | 63 | (95) |
Balance, end of year | $ 1,769 | $ 2,718 |
SEGMENTS (Details)
SEGMENTS (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2017USD ($)SegmentIndustry | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | ||
SEGMENTS [Abstract] | ||||||||||||
Number of industry in which entity operates | Industry | 1 | |||||||||||
Number of reportable operating segments | Segment | 3 | |||||||||||
Summary of key financial data [Abstract] | ||||||||||||
Net sales to external customers | $ 491,611 | $ 500,153 | $ 567,080 | [1] | ||||||||
Net sales | $ 119,940 | $ 126,386 | $ 131,617 | $ 113,668 | $ 118,539 | $ 128,809 | $ 131,622 | $ 121,182 | 491,611 | 500,153 | 567,080 | [1] |
Income (loss) from operations | 16,338 | (76,512) | 28,600 | [1] | ||||||||
Total assets | 431,265 | 426,740 | 431,265 | 426,740 | 578,505 | [1] | ||||||
Capital expenditures | 6,425 | 8,223 | 9,891 | [1] | ||||||||
Depreciation and amortization expense | 20,718 | 21,778 | 23,009 | [1] | ||||||||
Restructuring charges | 308 | 2,087 | 2,114 | |||||||||
Impairment charges | $ 104,300 | 106,000 | ||||||||||
North America [Member] | ||||||||||||
Summary of key financial data [Abstract] | ||||||||||||
Impairment charges | 44,000 | |||||||||||
Asia [Member] | ||||||||||||
Summary of key financial data [Abstract] | ||||||||||||
Impairment charges | 41,700 | |||||||||||
Europe [Member] | ||||||||||||
Summary of key financial data [Abstract] | ||||||||||||
Impairment charges | 20,300 | |||||||||||
Reportable Operating Segments [Member] | North America [Member] | ||||||||||||
Summary of key financial data [Abstract] | ||||||||||||
Net sales to external customers | 245,834 | 256,760 | 304,328 | [1] | ||||||||
Net sales | 257,541 | 268,935 | 329,304 | [1] | ||||||||
Income (loss) from operations | 5,147 | (35,722) | 11,012 | [1] | ||||||||
Total assets | 172,674 | 168,061 | 172,674 | 168,061 | 238,930 | [1] | ||||||
Capital expenditures | 1,734 | 2,641 | 2,425 | [1] | ||||||||
Depreciation and amortization expense | 10,641 | 10,522 | 10,841 | [1] | ||||||||
Restructuring charges | 4 | 692 | 1,452 | |||||||||
Reportable Operating Segments [Member] | Asia [Member] | ||||||||||||
Summary of key financial data [Abstract] | ||||||||||||
Net sales to external customers | 167,680 | 168,458 | 188,146 | [1] | ||||||||
Net sales | 249,506 | 256,202 | 295,751 | [1] | ||||||||
Income (loss) from operations | 8,964 | (24,360) | 8,175 | [1] | ||||||||
Total assets | 152,447 | 166,028 | 152,447 | 166,028 | 231,063 | [1] | ||||||
Capital expenditures | 2,617 | 4,329 | 4,888 | [1] | ||||||||
Depreciation and amortization expense | 6,728 | 7,976 | 8,706 | [1] | ||||||||
Restructuring charges | 167 | 1,305 | 352 | |||||||||
Reportable Operating Segments [Member] | Europe [Member] | ||||||||||||
Summary of key financial data [Abstract] | ||||||||||||
Net sales to external customers | 78,097 | 74,935 | 74,606 | [1] | ||||||||
Net sales | 89,765 | 86,750 | 148,735 | [1] | ||||||||
Income (loss) from operations | 2,227 | (16,430) | 9,413 | [1] | ||||||||
Total assets | $ 106,144 | $ 92,651 | 106,144 | 92,651 | 108,512 | [1] | ||||||
Capital expenditures | 2,074 | 1,253 | 2,578 | [1] | ||||||||
Depreciation and amortization expense | 3,349 | 3,280 | 3,462 | [1] | ||||||||
Restructuring charges | 137 | 90 | 310 | |||||||||
Intersegment Eliminations [Member] | ||||||||||||
Summary of key financial data [Abstract] | ||||||||||||
Net sales | $ (105,201) | $ (111,734) | $ (206,710) | [1] | ||||||||
[1] | (Revised) |
SEGMENTS, Entity Wide Informati
SEGMENTS, Entity Wide Information (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2017USD ($)Customer | Dec. 31, 2016USD ($)Customer | Dec. 31, 2015USD ($)Customer | ||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales to external customers | $ 491,611 | $ 500,153 | $ 567,080 | [1] | ||||||||
Long-Lived Assets | $ 71,468 | $ 75,109 | 71,468 | 75,109 | ||||||||
Net sales to external customers | 119,940 | $ 126,386 | $ 131,617 | $ 113,668 | 118,539 | $ 128,809 | $ 131,622 | $ 121,182 | $ 491,611 | $ 500,153 | $ 567,080 | [1] |
Net Sales [Member] | Customer Concentration Risk [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Number of customers representing sales in excess of ten percent | Customer | 1 | 1 | 1 | |||||||||
Net sales to external customers | $ 57,700 | $ 59,800 | $ 74,800 | |||||||||
Concentration risk percentage | 11.70% | 12.00% | 13.20% | |||||||||
Connectivity Solutions [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales to external customers | $ 170,337 | $ 168,845 | $ 181,697 | |||||||||
Magnetic Solutions [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales to external customers | 161,011 | 155,232 | 166,182 | |||||||||
Power Solutions and Protection [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales to external customers | $ 160,263 | 176,076 | 219,201 | |||||||||
Asia [Member] | Geographic Concentration Risk [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Concentration risk percentage | 36.90% | |||||||||||
United States [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales to external customers | $ 245,834 | 256,760 | 304,328 | |||||||||
Long-Lived Assets | 27,594 | 29,740 | 27,594 | 29,740 | ||||||||
People's Republic of China (PRC) [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Long-Lived Assets | 30,151 | 32,666 | 30,151 | 32,666 | ||||||||
Macao [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales to external customers | 167,681 | 163,971 | 182,248 | |||||||||
United Kingdom [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales to external customers | 24,110 | 21,953 | 27,552 | |||||||||
Long-Lived Assets | 1,345 | 1,419 | 1,345 | 1,419 | ||||||||
Switzerland [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales to external customers | 15,366 | 14,048 | 18,050 | |||||||||
Long-Lived Assets | 3,632 | 3,593 | 3,632 | 3,593 | ||||||||
Slovakia [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales to external customers | 14,194 | 17,622 | 2,807 | |||||||||
Long-Lived Assets | 7,625 | 6,574 | 7,625 | 6,574 | ||||||||
Germany [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales to external customers | 13,857 | 14,104 | 16,314 | |||||||||
All Other Foreign Countries [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales to external customers | 10,569 | 11,695 | 15,781 | |||||||||
Long-Lived Assets | $ 1,121 | $ 1,117 | 1,121 | 1,117 | ||||||||
Reportable Operating Segments [Member] | North America [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales to external customers | 245,834 | 256,760 | 304,328 | [1] | ||||||||
Net sales to external customers | 257,541 | 268,935 | 329,304 | [1] | ||||||||
Reportable Operating Segments [Member] | Asia [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales to external customers | 167,680 | 168,458 | 188,146 | [1] | ||||||||
Net sales to external customers | 249,506 | 256,202 | 295,751 | [1] | ||||||||
Reportable Operating Segments [Member] | Europe [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales to external customers | 78,097 | 74,935 | 74,606 | [1] | ||||||||
Net sales to external customers | $ 89,765 | $ 86,750 | $ 148,735 | [1] | ||||||||
[1] | (Revised) |
RETIREMENT FUND AND PROFIT SH67
RETIREMENT FUND AND PROFIT SHARING PLAN (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Contribution Plan Disclosure [Line Items] | |||
Employer match of the first 1% of compensation contributed by participants | 100.00% | ||
Percentage of participant contribution under condition one | 1.00% | ||
Employer match of the next 5% compensation contributed by participants, percentage | 50.00% | ||
Percentage of employee deferrals under condition two | 5.00% | ||
UNITED STATES | Common Class A [Member] | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Shares owned by plan (in shares) | 67,891 | ||
UNITED STATES | Common Class B [Member] | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Shares owned by plan (in shares) | 144,276 | ||
HONG KONG | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Employer matching contribution, percentage | 7.00% | ||
HONG KONG | Minimum [Member] | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Employer matching contribution, percentage | 5.00% | ||
HONG KONG | Maximum [Member] | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Employee matching contribution per participant under prior plan | 5.00% | ||
Retirement Fund [Member] | HONG KONG | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Compensation expenses | $ 300 | $ 300 | $ 300 |
Retirement Fund [Member] | HONG KONG | Common Class A [Member] | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Shares owned by plan (in shares) | 3,323 | ||
Retirement Fund [Member] | HONG KONG | Common Class B [Member] | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Shares owned by plan (in shares) | 17,342 | ||
401K Plan [Member] | UNITED STATES | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Compensation expenses | $ 1,200 | 1,100 | 1,200 |
SERP [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension expense | $ 1,700 | 1,600 | 1,500 |
Normal retirement age | 65 years | ||
Number of years of service | 20 years | ||
Number of years of plan participation | 5 years | ||
Percentage of average base compensation payable as normal retirement benefit under the plan | 40.00% | ||
Early retirement age | 55 years | ||
Number of consecutive calendar years of plan participation to calculate average base compensation | 20 years | ||
Number of monthly payments under the death benefit of the plan | 120 months | ||
Period for which beneficiary is entitled to receive benefit | shorter of (i) the time necessary to complete 120 monthly payments or (ii) 60 months | ||
Percentage of participant's annual base salary received by beneficiary for one year from date of death | 100.00% | ||
Period for which beneficiary will receive hundred percent annual base salary | 1 year | ||
Percentage of participant's annual base salary received by beneficiary for years two through five following date of death | 50.00% | ||
Period for which beneficiary will receive fifty percent annual base salary | 4 years | ||
Components of SERP expense [Abstract] | |||
Service Cost | $ 700 | 593 | 552 |
Interest Cost | 673 | 659 | 567 |
Net amortization | 375 | 391 | 366 |
Net periodic benefit cost | 1,748 | 1,643 | 1,485 |
Summary of information about changes in plan assets, benefit obligation, and the funded status [Abstract] | |||
Fair value of plan assets, beginning of period | 0 | 0 | |
Company contributions | 240 | 129 | |
Benefits paid | (240) | (129) | |
Fair value of plan assets, end of period | 0 | 0 | 0 |
Benefit obligation January 1 | 16,900 | 15,576 | |
Service cost | 700 | 593 | 552 |
Interest cost | 673 | 659 | 567 |
Benefits paid | (240) | (129) | |
Plan amendments | 198 | 487 | |
Actuarial (gains) losses | 903 | (286) | |
Benefit obligation, December 31 | 19,134 | 16,900 | $ 15,576 |
Underfunded status, December 31 | (19,134) | (16,900) | |
Accumulated benefit obligation | 16,100 | 13,800 | |
Fair value of life insurance policies and marketable securities held in a rabbi trust | 14,000 | 12,700 | |
Estimated net loss and prior service cost that will be amortized from accumulated other comprehensive income into net periodic benefit cost over the next fiscal year | 400 | ||
Expected employer contributions in next fiscal year | 300 | ||
Expected future benefit payments [Abstract] | |||
2,018 | 317 | ||
2,019 | 564 | ||
2,020 | 622 | ||
2,021 | 622 | ||
2,222 | 909 | ||
2023 - 2027 | 5,193 | ||
Amounts recognized in accumulated other comprehensive loss, pretax [Abstract] | |||
Prior service cost | 1,135 | 1,172 | |
Net loss | 3,732 | 2,970 | |
Total amounts recognized in accumulated other comprehensive loss | $ 4,867 | $ 4,142 | |
Net periodic benefit cost [Abstract] | |||
Discount rate | 4.00% | 4.25% | 4.00% |
Rate of compensation increase | 3.00% | 3.00% | 3.00% |
Benefit obligation [Abstract] | |||
Discount rate | 3.50% | 4.00% | 4.25% |
Rate of compensation increase | 3.00% | 3.00% | 3.00% |
SERP [Member] | Minimum [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Number of monthly payments entitled to beneficiary in case participant dies prior to receiving one hundred twenty monthly payments | 60 months |
SHARE-BASED COMPENSATION (Detai
SHARE-BASED COMPENSATION (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Pretax stock based compensation cost | $ 3,030 | $ 2,817 | $ 2,815 |
Percentage of increments earned for share awards | 25.00% | ||
Restricted Stock [Member] | |||
Shares [Roll Forward] | |||
Outstanding, beginning of period (in shares) | 558,600 | ||
Granted (in shares) | 46,400 | ||
Vested (in shares) | (141,800) | ||
Forfeited (in shares) | (38,700) | ||
Outstanding, end of period (in shares) | 424,500 | 558,600 | |
Weighted Average Award Price [Roll Forward] | |||
Outstanding, beginning of period (in dollars per share) | $ 22.64 | ||
Granted (in dollars per share) | 24.05 | ||
Vested (in dollars per share) | 21.59 | ||
Forfeited (in dollars per share) | 21.70 | ||
Outstanding, end of period (in dollars per share) | $ 23.23 | $ 22.64 | |
Weighted Average Remaining Contractual Term [Abstract] | |||
Outstanding | 3 years | 3 years 1 month 6 days | |
Pretax unrecognized compensation cost | $ 6,600 | ||
Period over which compensation cost is expected to be recognized | 4 years 10 months 24 days | ||
Restricted Stock [Member] | Common Class B [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares issued (in shares) | 46,400 | 180,000 | 84,000 |
2011 Equity Compensation Plan [Member] | Restricted Stock [Member] | Common Class B [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares authorized under the plan (in shares) | 1,400,000 | ||
Common shares available for future issuance (in shares) | 592,100 |
COMMON STOCK (Details)
COMMON STOCK (Details) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2017USD ($)Shareholder$ / shares | Dec. 31, 2016USD ($)$ / shares | Dec. 31, 2015USD ($)$ / shares | |
Class of Stock [Line Items] | |||
Number of days from trigger date to purchase Class B common shares | 90 days | ||
Percentage of common stock held by shareholder one | 23.20% | ||
Common stock dividends declared | $ | $ 3.3 | $ 3.2 | $ 3.2 |
Minimum [Member] | |||
Class of Stock [Line Items] | |||
Percentage of outstanding common stock held by two shareholders | 10.00% | ||
Percentage of common stock needs to held by shareholders having more than ten percent of Class A common stock as per class B Protection clause | 10.00% | ||
Maximum [Member] | |||
Class of Stock [Line Items] | |||
Percentage shareholding of class B considered as per class B Protection clause | 10.00% | ||
Class A [Member] | |||
Class of Stock [Line Items] | |||
Number of shareholders with ownership in excess of ten percent | Shareholder | 1 | ||
Common stock dividends declared each quarter (in dollars per share) | $ 0.06 | $ 0.06 | $ 0.06 |
Class B [Member] | |||
Class of Stock [Line Items] | |||
Common stock dividends declared each quarter (in dollars per share) | $ 0.07 | $ 0.07 | $ 0.07 |
COMMITMENTS AND CONTINGENCIES70
COMMITMENTS AND CONTINGENCIES (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($)Subsidiary | |
Future minimum lease payments for operating leases [Abstract] | |||
2,018 | $ 5,819 | ||
2,019 | 4,194 | ||
2,020 | 3,717 | ||
2,021 | 3,112 | ||
2,022 | 1,357 | ||
Thereafter | 448 | ||
Total future minimum lease payments for operating leases | 18,647 | ||
Rent expense for leases | 8,200 | $ 7,900 | $ 8,800 |
Other commitments [Abstract] | |||
Outstanding purchase orders related to raw materials | 45,400 | 31,000 | |
Outstanding purchase orders related to capital expenditures | 3,000 | $ 2,800 | |
Arezzo Revenue Agency [Member] | |||
Loss Contingencies [Line Items] | |||
Noncurrent liability and offsetting indemnification asset | $ 12,000 | ||
Setec [Member] | |||
Loss Contingencies [Line Items] | |||
Number of subsidiaries named in the lawsuit | Subsidiary | 3 |
ACCUMULATED OTHER COMPREHENSI71
ACCUMULATED OTHER COMPREHENSIVE LOSS, Components of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Accumulated other comprehensive loss [Abstract] | |||
Foreign currency translation adjustment | $ (16,537) | $ (28,976) | $ (19,305) |
Unrealized holding gain on available-for-sale securities, net of taxes of $85, $263 and $265 as of December 31, 2017, 2016 and 2015 | 145 | 424 | 434 |
Unfunded SERP liability, net of taxes of ($1,635), ($1,398) and ($1,327) as of December 31, 2017, 2016 and 2015 | (3,233) | (2,745) | (3,005) |
Accumulated other comprehensive loss | (19,625) | (31,297) | (21,876) |
Accumulated other comprehensive loss, tax [Abstract] | |||
Unrealized holding gains on available-for-sale securities, tax | 85 | 263 | 265 |
Change in unfunded SERP liability, tax | $ (1,635) | $ (1,398) | $ (1,327) |
ACCUMULATED OTHER COMPREHENSI72
ACCUMULATED OTHER COMPREHENSIVE LOSS, Changes in Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Changes in Accumulated Other Comprehensive (Loss) Income by Component [Roll Forward] | ||||
Balance | $ 158,434 | $ 233,122 | $ 224,273 | |
Other comprehensive income (loss) before reclassifications | 11,427 | (9,676) | ||
Amounts reclassified from accumulated other comprehensive income (loss) | 245 | 255 | ||
Net current period other comprehensive income (loss) | 11,672 | (9,421) | (9,928) | |
Balance | 157,960 | 158,434 | 233,122 | |
Accumulated Other Comprehensive Income (Loss) [Member] | ||||
Changes in Accumulated Other Comprehensive (Loss) Income by Component [Roll Forward] | ||||
Balance | (31,297) | (21,876) | (11,948) | |
Balance | (19,625) | (31,297) | (21,876) | |
Foreign Currency Translation Adjustment [Member] | ||||
Changes in Accumulated Other Comprehensive (Loss) Income by Component [Roll Forward] | ||||
Balance | (28,976) | (19,305) | ||
Other comprehensive income (loss) before reclassifications | 12,439 | (9,671) | ||
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | 0 | ||
Net current period other comprehensive income (loss) | 12,439 | (9,671) | ||
Balance | (16,537) | (28,976) | (19,305) | |
Unrealized Holding Gains on Available-for-Sale Securities [Member] | ||||
Changes in Accumulated Other Comprehensive (Loss) Income by Component [Roll Forward] | ||||
Balance | 424 | 434 | ||
Other comprehensive income (loss) before reclassifications | (279) | (10) | ||
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | 0 | ||
Net current period other comprehensive income (loss) | (279) | (10) | ||
Balance | 145 | 424 | 434 | |
Unfunded SERP Liability [Member] | ||||
Changes in Accumulated Other Comprehensive (Loss) Income by Component [Roll Forward] | ||||
Balance | (2,745) | (3,005) | ||
Other comprehensive income (loss) before reclassifications | (733) | 5 | ||
Amounts reclassified from accumulated other comprehensive income (loss) | [1] | 245 | 255 | |
Net current period other comprehensive income (loss) | (488) | 260 | ||
Balance | $ (3,233) | $ (2,745) | $ (3,005) | |
[1] | This reclassification relates to the amortization of prior service costs and gains/losses associated with the Company's SERP plan. This expense is allocated between cost of sales and selling, general and administrative expense based upon the employment classification of the plan participants. |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Related Party Transaction [Line Items] | |||
Gain from divestiture of business | $ 0.5 | ||
Power Solutions [Member] | |||
Related Party Transaction [Line Items] | |||
Minority interest ownership percentage | 49.00% | ||
People's Republic of China Joint Venture [Member] | |||
Related Party Transaction [Line Items] | |||
Inventory purchase payment from joint venture | $ 0 | $ 0 | $ 1.5 |
Extinguishment of debt | $ 0.5 |
SELECTED QUARTERLY DATA (UNAU74
SELECTED QUARTERLY DATA (UNAUDITED) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |||||
Selected quarterly financial data [Abstract] | |||||||||||||||
Net sales | $ 119,940 | $ 126,386 | $ 131,617 | $ 113,668 | $ 118,539 | $ 128,809 | $ 131,622 | $ 121,182 | $ 491,611 | $ 500,153 | $ 567,080 | [1] | |||
Gross profit | 22,075 | 27,617 | 29,042 | 23,278 | 24,579 | 26,575 | 25,692 | 23,074 | 102,010 | 99,908 | 108,827 | ||||
Net (loss) earnings | (20,787) | [2] | $ 5,024 | $ 3,120 | $ 746 | $ 3,377 | $ 9,710 | 22,776 | [3] | (100,696) | [3] | (11,897) | (64,834) | 19,197 | |
Net (loss) earnings per share: | |||||||||||||||
Estimated transition tax | 17,500 | ||||||||||||||
Estimated transition tax, after tax credits | 16,000 | ||||||||||||||
Revaluation company's deferred tax assets | $ 2,000 | 6,300 | |||||||||||||
Impairment charges | $ 104,300 | 106,000 | |||||||||||||
Reversal of provisional non-cash impairment charges | $ (2,600) | ||||||||||||||
Class A Common Stock [Member] | |||||||||||||||
Selected quarterly financial data [Abstract] | |||||||||||||||
Net (loss) earnings | $ (2,113) | $ (11,408) | $ 3,331 | ||||||||||||
Net (loss) earnings per share: | |||||||||||||||
Common share - basic and diluted (in dollars per share) | $ (1.66) | $ 0.40 | $ 0.24 | $ 0.05 | $ 0.27 | $ 0.78 | $ 1.83 | $ (8.15) | $ (0.97) | $ (5.25) | $ 1.53 | ||||
Class B Common Stock [Member] | |||||||||||||||
Selected quarterly financial data [Abstract] | |||||||||||||||
Net (loss) earnings | $ (9,784) | $ (53,426) | $ 15,866 | ||||||||||||
Net (loss) earnings per share: | |||||||||||||||
Common share - basic and diluted (in dollars per share) | $ (1.74) | $ 0.42 | $ 0.26 | $ 0.06 | $ 0.29 | $ 0.82 | $ 1.93 | $ (8.55) | $ (0.99) | $ (5.48) | $ 1.64 | ||||
[1] | (Revised) | ||||||||||||||
[2] | The provision for income taxes in the fourth quarter of 2017 included an $18 million impact from the U.S. Tax Cuts and Jobs Act which was enacted on December 22, 2017. This consisted of an estimated transition tax on foreign earnings of approximately $16 million after the utilization of foreign tax credits and $2 million related to the revaluation of the Company's deferred tax assets. | ||||||||||||||
[3] | In connection with an interim impairment test related to the Company's goodwill and other intangible assets, provisional non-cash impairment charges totaling $104.3 million were recorded during the first quarter of 2016. During the second quarter of 2016, the Company finalized its interim impairment test, which resulted in a $2.6 million reduction to the provisional impairment charge recorded during the first quarter. |
SCHEDULE II - VALUATION AND Q75
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Allowance for Doubtful Accounts [Member] | ||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
Balance at beginning of period | $ 1,781 | $ 1,747 | $ 1,989 | |
Charged to costs and expenses | 139 | (163) | 295 | |
Charged to other accounts | [1] | (132) | 281 | 303 |
Deductions | [2] | (43) | (84) | (840) |
Balance at end of period | 1,745 | 1,781 | 1,747 | |
Allowance for Excess and Obsolete Inventory [Member] | ||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
Balance at beginning of period | 6,263 | 5,268 | 6,809 | |
Charged to costs and expenses | 3,893 | 3,513 | 2,186 | |
Charged to other accounts | [1] | 661 | 185 | (59) |
Deductions | [2] | (2,521) | (2,703) | (3,668) |
Balance at end of period | 8,296 | 6,263 | 5,268 | |
Deferred Tax Assets - Valuation Allowances [Member] | ||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
Balance at beginning of period | 7,485 | 6,635 | 6,692 | |
Charged to costs and expenses | 1,599 | 887 | 456 | |
Charged to other accounts | [1] | 0 | 0 | 0 |
Deductions | [2] | (739) | (37) | (513) |
Balance at end of period | $ 8,345 | $ 7,485 | $ 6,635 | |
[1] | Includes foreign currency translation adjustments | |||
[2] | Write offs |