Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2018 | May 01, 2018 | |
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 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2018 | |
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 | 9,847,102 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Current Assets: | ||
Cash and cash equivalents | $ 66,852 | $ 69,354 |
Accounts receivable, net of allowance for doubtful accounts of $1,709 in 2018 and $1,745 in 2017 | 76,787 | 78,808 |
Unbilled receivables | 13,643 | 0 |
Inventories | 102,693 | 107,719 |
Other current assets | 10,004 | 10,218 |
Total current assets | 269,979 | 266,099 |
Property, plant and equipment, net | 43,322 | 43,495 |
Intangible assets, net | 68,286 | 69,366 |
Goodwill | 20,419 | 20,177 |
Deferred income taxes | 4,980 | 4,155 |
Other assets | 28,408 | 27,973 |
Total assets | 435,394 | 431,265 |
Current Liabilities: | ||
Accounts payable | 48,169 | 47,947 |
Accrued expenses | 27,409 | 30,508 |
Current portion of long-term debt | 2,642 | 2,641 |
Other current liabilities | 7,664 | 6,204 |
Total current liabilities | 85,884 | 87,300 |
Long-term Liabilities: | ||
Long-term debt | 119,390 | 120,053 |
Liability for uncertain tax positions | 28,788 | 27,948 |
Minimum pension obligation and unfunded pension liability | 19,403 | 19,134 |
Deferred income taxes | 1,778 | 1,567 |
Other liabilities | 15,976 | 17,303 |
Total liabilities | 271,219 | 273,305 |
Commitments and contingencies | ||
Stockholders' Equity: | ||
Preferred stock, no par value, 1,000,000 shares authorized; none issued | 0 | 0 |
Additional paid-in capital | 29,355 | 28,575 |
Retained earnings | 149,171 | 147,807 |
Accumulated other comprehensive loss | (15,553) | (19,625) |
Total stockholders' equity | 164,175 | 157,960 |
Total liabilities and stockholders' equity | 435,394 | 431,265 |
Class A Common Stock [Member] | ||
Stockholders' Equity: | ||
Common Stock | 217 | 217 |
Class B Common Stock [Member] | ||
Stockholders' Equity: | ||
Common Stock | $ 985 | $ 986 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Current Assets | ||
Accounts receivable, allowance for doubtful accounts | $ 1,709 | $ 1,745 |
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) | 9,847,102 | 9,859,352 |
Common stock, treasury shares (in shares) | 3,218,307 | 3,218,307 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Net sales | $ 118,251 | $ 113,668 |
Cost of sales | 97,118 | 90,305 |
Gross profit | 21,133 | 23,363 |
Selling, general and administrative expense | 20,692 | 20,975 |
Restructuring charges | 4 | 33 |
Income from operations | 437 | 2,355 |
Interest expense | (1,177) | (1,424) |
Other income/expense, net | (238) | (208) |
(Loss) earnings before provision for (benefit from) income taxes | (978) | 723 |
Provision for (benefit from) income taxes | 325 | (23) |
Net (loss) earnings available to common stockholders | (1,303) | 746 |
Class A Common Share [Member] | ||
Net (loss) earnings available to common stockholders | $ (240) | $ 116 |
Net (loss) earnings per common share: | ||
Common share - basic and diluted (in dollars per share) | $ (0.11) | $ 0.05 |
Weighted-average number of shares outstanding: | ||
Common share - basic and diluted (in shares) | 2,175 | 2,175 |
Dividends paid per common share: | ||
Common share (in dollars per share) | $ 0.06 | $ 0.06 |
Class B Common Share [Member] | ||
Net (loss) earnings available to common stockholders | $ (1,063) | $ 630 |
Net (loss) earnings per common share: | ||
Common share - basic and diluted (in dollars per share) | $ (0.11) | $ 0.06 |
Weighted-average number of shares outstanding: | ||
Common share - basic and diluted (in shares) | 9,856 | 9,845 |
Dividends paid per common share: | ||
Common share (in dollars per share) | $ 0.07 | $ 0.07 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME [Abstract] | ||
Net (loss) earnings available to common stockholders | $ (1,303) | $ 746 |
Other comprehensive income: | ||
Currency translation adjustment, net of taxes of $25 in 2018 and ($32) in 2017 | 4,017 | 1,910 |
Unrealized holding gains on marketable securities arising during the period, net of taxes of $20 in 2018 and $178 and 2017 | (31) | (279) |
Change in unfunded SERP liability, net of taxes of ($25) in 2018 and ($32) in 2017 | 86 | 62 |
Other comprehensive income | 4,072 | 1,693 |
Comprehensive income | $ 2,769 | $ 2,439 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Other comprehensive income: | ||
Currency translation adjustment, tax | $ 25 | $ (32) |
Unrealized holding gains on marketable securities arising during the period, tax | 20 | 178 |
Change in unfunded SERP liability, tax | $ (25) | $ (32) |
CONDENSED CONSOLIDATED STATEME7
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Cash flows from operating activities: | ||
Net (loss) earnings | $ (1,303) | $ 746 |
Adjustments to reconcile net (loss) earnings to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 4,776 | 5,227 |
Stock-based compensation | 777 | 785 |
Amortization of deferred financing costs | 120 | 277 |
Deferred income taxes | (505) | (535) |
Net unrealized losses on foreign currency revaluation | 1,002 | 532 |
Other, net | 520 | 56 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 2,528 | 1,985 |
Unbilled receivables | 893 | 0 |
Inventories | (4,734) | (2,384) |
Account payable | (777) | (932) |
Accrued expenses | (3,616) | (4,651) |
Other operating assets/liabilities, net | 645 | (1,822) |
Net cash provided by (used in) operating activities | 326 | (716) |
Cash flows from investing activities: | ||
Purchases of property, plant and equipment | (2,216) | (1,009) |
Proceeds from disposal/sale of property, plant and equipment | 48 | 9 |
Net cash used in investing activities | (2,168) | (1,000) |
Cash flows from financing activities: | ||
Dividends paid to common stockholders | (791) | (781) |
Borrowings under revolving credit line | 0 | 6,000 |
Repayments of revolving credit line | 0 | (2,000) |
Reduction in notes payable | 0 | (203) |
Repayments of long-term debt | (781) | (2,544) |
Net cash (used in) provided by financing activities | (1,572) | 472 |
Effect of exchange rate changes on cash and cash equivalents | 912 | 114 |
Net decrease in cash and cash equivalents | (2,502) | (1,130) |
Cash and cash equivalents - beginning of period | 69,354 | 73,411 |
Cash and cash equivalents - end of period | 66,852 | 72,281 |
Cash paid during the period for: | ||
Income taxes, net of refunds received | 1,040 | 478 |
Interest payment | $ 1,079 | $ 1,143 |
BASIS OF PRESENTATION AND ACCOU
BASIS OF PRESENTATION AND ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2018 | |
BASIS OF PRESENTATION AND ACCOUNTING POLICIES [Abstract] | |
BASIS OF PRESENTATION AND ACCOUNTING POLICIES | 1. BASIS OF PRESENTATION AND ACCOUNTING POLICIES The condensed consolidated balance sheets, statements of operations, comprehensive income (loss) and cash flows for the periods presented herein have been prepared by the Company and are unaudited. In the opinion of management, all adjustments (consisting solely of normal recurring adjustments) necessary to present fairly the consolidated financial position, results of operations and cash flows for all periods presented have been made. The results for the three months ended March 31, 2018 are not necessarily indicative of the results to be expected for the full year. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and footnotes thereto included in the Bel Fuse Annual Report on Form 10-K for the year ended December 31, 2017. Certain information and footnote disclosures required under accounting principles generally accepted in the United States of America ("U.S. GAAP") have been condensed or omitted from the following condensed consolidated financial statements pursuant to the rules and regulations, including the interim reporting requirements, of the SEC. The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts and the disclosure of contingent amounts in our condensed consolidated financial statements and accompanying notes. Actual results could differ from these estimates. The Company's significant accounting policies are summarized in Note 1 of the Company's Annual Report on Form 10-K for the year ended December 31, 2017. There were no significant changes to these accounting policies during the three months ended March 31, 2018, except as discussed in Note 2, Revenue, related to the adoption of the new revenue standards. All amounts included in the tables to these notes to condensed consolidated financial statements, except per share amounts, are in thousands. Recently Adopted Accounting Standards In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) Upon adoption, the new revenue standards replaced most existing revenue recognition guidance in U.S. GAAP. Based on our review of representative samples of contracts and other forms of agreements with customers globally and our evaluation of the provisions under the five-step model specified by the new revenue standards, the Company has implemented changes with respect to timing of revenue recognition primarily related to arrangements for which the customer takes the Company's products from a facility holding consignment inventory. In connection with the modified retrospective application of the new revenue standards, we recorded an adjustment to increase retained earnings of $3.4 million upon the January 1, 2018 adoption date. Apart from this adjustment and the inclusion of additional required disclosures in Note 2, the adoption of the new revenue standards did not have a material impact on the Company's condensed consolidated financial statements. 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 August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments guidance was adopted by the Company effective January 1, 2018 and it did not have any impact on the Company's condensed consolidated statement of cash flows in the periods presented. 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 was 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 was adopted by the Company effective January 1, 2018 and it did not have a material impact on the Company's condensed consolidated financial position or results of operations. In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business 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") Accounting Standards Issued But Not Yet Adopted In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) , to provide a new comprehensive model for lease accounting. Under In January 2017, the FASB issued Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment In February 2018, the FASB issued ASU 2018-02, Income Statement – Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income We are currently in the process of evaluating this new standard update. |
REVENUE
REVENUE | 3 Months Ended |
Mar. 31, 2018 | |
REVENUE [Abstract] | |
REVENUE | 2. REVENUE Significant Accounting Policy On January 1, 2018, the Company adopted ASC 606 using the modified retrospective method applied to those contracts which were not completed as of January 1, 2018. Results for reporting periods beginning after January 1, 2018 are presented under ASC 606, while prior period amounts are not adjusted and continue to be reported in accordance with our historical accounting under ASC 605. The adoption of ASC 606 represents a change in accounting principle that will more closely align revenue recognition with the transfer of control of the Company's goods and services and provides financial statement readers with enhanced disclosures related to the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. In accordance with ASC 606, revenue is recognized when a customer obtains control of promised goods or services. The amount of revenue recognized reflects the consideration to which the Company expects to be entitled to receive in exchange for these goods and services. Taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction, that are collected by the Company from a customer, are excluded from revenue. Shipping and handling costs associated with outbound freight after control over a product has transferred to a customer are accounted for as a fulfillment cost and are included in cost of sales. Nature of Goods and Services Our revenues are substantially derived from sales of our products. In our connectivity solutions product group, we provide high-quality and reliable high-performance connectors and cable assemblies to the aerospace, military/defense, commercial, rugged harsh environment and communication markets. This group also includes passive jacks, plugs and cable assemblies that provide connectivity in networking equipment, as well as modular plugs and cable assemblies used within the structured cabling system, known as premise wiring. In our power solutions and protection group, we provide intelligent, efficient and reliable AC-DC and DC-DC power conversion devices and circuit protection products. Applications range from board-mount power to system-level architectures for servers, storage, networking, industrial and transportation. In our magnetic solutions group, we provide an extensive line of integrated connector modules (ICM), where an Ethernet magnetic solution is integrated into a connector package. Products within the Company's magnetic solutions group are primarily used in networking and industrial applications. The Company also provides incremental services to our customers in the form of training, technical support, special tooling, and other support as deemed necessary from time to time. For purposes of ASC 606, all such incremental services were concluded to be immaterial in the context of the contracts. Types of Contracts Substantially all of the Company's revenue is derived from contracts with its customers under one of the following types of contracts: · Direct with customer: · Distributor: · Consignment: · Licensing Agreements: Warranties Warranties vary by product line and are competitive for the markets in which the Company operates. Warranties generally extend for one to three years from the date of sale, providing customers with assurance that the related product will function as intended. The Company reviews its warranty liability quarterly based on an analysis of actual expenses and failure rates accompanied with estimated future costs and projected failure rate trends. Factors taken into consideration when evaluating our warranty reserve are (i) historical claims for each product, (ii) volume increases, (iii) life of warranty, (iv) historical warranty repair costs and (v) other factors. To the extent that actual experience differs from our estimate, the provision for product warranties will be adjusted in future periods. Actual warranty repair costs are charged against the reserve balance as incurred. See Note 11, "Accrued Expenses." Product Returns We estimate product returns, including product exchanges under warranty, based on historical experience. In general, 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 certain 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. Distribution customers often receive what is referred to as "ship and debit" arrangements, whereby Bel will invoice them at an agreed upon unit price upon shipment of product and a price reduction may be granted if the market price of the product declines after shipment. Distributors may also be entitled to special pricing discount credits, and certain customers are entitled to return allowances based on previous sales volumes. Bel deducts estimates for anticipated credits, refunds and returns from sales each quarter based on historical experience. Significant Payment Terms Contracts with customers indicate the general terms and conditions in which business will be conducted for a set period of time. Individual purchase orders state the description, quantity and price of each product purchased. Payment for products sold under direct contracts with customers or contracts with distributors is typically due in full within 30-90 days from the transfer of title to customer. Payment for products sold under consignment contracts is typically due within 60 days of the customer pulling the product from the hub. Payment due related to our licensing agreements is generally within 30 days of receiving the licensee sales data, which is either on a quarterly or annual basis. Since the customer agrees to a stated price for each product on each purchase order, the majority of contracts are not subject to variable consideration, except as discussed above related to product returns. However, the "ship and debit" arrangements with distributors, royalty income associated with our licensing agreements, and the product returns described above are each deemed to be variable consideration which requires the Company to make constrained estimates based on historical data. Disaggregation of Revenue The following table provides information about disaggregated revenue by product group and sales channel, and includes a reconciliation of the disaggregated revenue to our reportable segments: Three Months Ended March 31, 2018 North America Asia Europe Consolidated By Product Group: Connectivity solutions $ 31,046 $ 3,420 $ 8,453 $ 42,919 Magnetic solutions 8,051 27,825 2,352 38,228 Power solutions and protection 20,360 7,375 9,369 37,104 $ 59,457 $ 38,620 $ 20,174 $ 118,251 By Sales Channel: Direct to customer $ 37,897 $ 32,927 $ 14,193 $ 85,017 Through distribution 21,560 5,693 5,981 33,234 $ 59,457 $ 38,620 $ 20,174 $ 118,251 The cumulative effect of the changes made to our consolidated January 1, 2018 balance sheet for the adoption of ASC 606 were as follows: Balance at Adjustments Balance at December 31, Due to January 1, 2017 ASC 606 2018 Balance Sheet Unbilled receivables $ - $ 14,536 $ 14,536 Inventory 107,719 (11,044 ) 96,675 Other current liabilities 6,204 43 6,247 Retained earnings 147,807 3,449 151,256 In accordance with the new revenue standard requirements, the disclosure of the impact of adoption on our balance sheet as of March 31, 2018 and consolidated statement of operations for the period ended March 31, 2018 was as follows: As of March 31, 2018 Balances Effect of As Without Adoption Change Reported of ASC 606 Higher/(Lower) Balance Sheet Assets Unbilled receivables $ 13,643 $ - $ 13,643 Inventories 102,693 112,650 (9,957 ) Liabilities Other current liabilities 7,664 7,553 111 Equity Retained earnings 149,171 145,596 3,575 Three Months Ended March 31, 2018 Balances Effect of As Without Adoption Change Reported of ASC 606 Higher/(Lower) Statement of Operations Net sales $ 118,251 $ 119,092 $ (841 ) Cost of sales 97,118 98,205 (1,087 ) Operating income 437 191 246 Provision for income taxes 325 260 65 Net earnings $ (1,303 ) $ (1,484 ) $ 181 Contract Assets and Contract Liabilities A contract asset results when goods or services have been transferred to the customer but payment is contingent upon a future event, other than passage of time. In the case of our consignment arrangements, we are unable to invoice the customer until product is pulled from the hub by the customer, which generates an unbilled receivable (a contract asset) when revenue is initially recognized. A contract liability results when cash payments are received or due in advance of our performance obligation being met. We have certain customers who provide payment in advance of product being shipped, which results in deferred revenue (a contract liability). The balances of the Company's contract assets and contract liabilities at March 31, 2018 are as follows: March 31, January 1, 2018 2018 Contract assets - current (unbilled receivable) $ 13,643 $ 14,536 Contract liabilities - current (deferred revenue) $ 1,829 $ 855 The change in balance of our unbilled receivables from January 1, 2018 to March 31, 2018 primarily relates to a timing difference between the Company's performance (i.e. when our product is shipped to a customer-controlled hub) and the point at which the Company can invoice the customer per the terms of the customer contract (i.e. when the customer pulls our product from the customer-controlled hub). Of the $0.9 million of deferred revenue at January 1, 2018, $0.5 million was recognized as revenue during the three months ended March 31, 2018. Transaction Price Allocated to Future Obligations The aggregate amount of transaction price allocated to remaining performance obligations that have not been satisfied as of March 31, 2018 related to contracts that exceed one year in duration amounted to $17.4 million, with expected contract expiration dates that range from 2019 - 2024. It is expected that 36% of this aggregate amount will be recognized in 2019, 61% will be recognized in 2020 and the remainder will be recognized in years beyond 2020. The majority of the Company's total backlog of orders at March 31, 2018 is related to contracts that have an original expected duration of one year or less, for which the Company is electing to utilize the practical expedient available within the guidance, and are excluded from the transaction price related to these future obligations. The Company will generally satisfy the remaining performance obligations as we transfer control of the products ordered to our customers. The transaction price related to these future obligations also excludes variable consideration consisting of sales or usage-based royalties earned on licensing agreements. The variability related to these sales or usage-based royalties will be resolved in the periods when the licensee generates sales related to the licensed intellectual property. Other Practical Expedients: In the application of the recognition and measurement principles of ASC 606, the Company elected to utilize the following additional practical expedients which are provided for within the guidance: · Financing Components · Costs to Obtain a Contract |
(LOSS) EARNINGS PER SHARE
(LOSS) EARNINGS PER SHARE | 3 Months Ended |
Mar. 31, 2018 | |
(LOSS) EARNINGS PER SHARE [Abstract] | |
(LOSS) EARNINGS PER SHARE | 3. (LOSS) EARNINGS PER SHARE The following table sets forth the calculation of basic and diluted net (loss) earnings per common share under the two-class method for the three months ended March 31, 2018 and 2017: Three Months Ended March 31, 2018 2017 Numerator: Net (loss) earnings $ (1,303 ) $ 746 Less dividends declared: Class A 130 130 Class B 700 699 Undistributed loss $ (2,133 ) $ (83 ) Undistributed loss allocation - basic and diluted: Class A undistributed loss $ (370 ) $ (14 ) Class B undistributed loss (1,763 ) (69 ) Total undistributed loss $ (2,133 ) $ (83 ) Net earnings (loss) allocation - basic and diluted: Class A net (loss) earnings $ (240 ) $ 116 Class B net (loss) earnings (1,063 ) 630 Net (loss) earnings $ (1,303 ) $ 746 Denominator: Weighted-average shares outstanding: Class A - basic and diluted 2,175 2,175 Class B - basic and diluted 9,856 9,845 Net (loss) earnings per share: Class A - basic and diluted $ (0.11 ) $ 0.05 Class B - basic and diluted $ (0.11 ) $ 0.06 |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 3 Months Ended |
Mar. 31, 2018 | |
FAIR VALUE MEASUREMENTS [Abstract] | |
FAIR VALUE MEASUREMENTS | 4. FAIR VALUE MEASUREMENTS F Level 1 Level 2 Level 3 As of March 31, 2018 and December 31, 2017, 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. 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 condensed consolidated balance sheets at March 31, 2018 and December 31, 2017. The gross unrealized gains associated with the investment securities held in the rabbi trust were $0.2 million at each of March 31, 2018 and December 31, 2017. Such unrealized gains are included, net of tax, in accumulated other comprehensive loss. As of March 31, 2018 and December 31, 2017, our available-for-sale securities, which primarily consist of investments held in a rabbi trust of $1.5 million at each date, 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 the three months ended March 31, 2018 or March 31, 2017. There were no changes to the Company's valuation techniques used to measure asset fair values on a recurring or nonrecurring basis during the three months ended March 31, 2018. There were no financial assets accounted for at fair value on a nonrecurring basis as of March 31, 2018 or December 31, 2017. 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 March 31, 2018 and December 31, 2017, the estimated fair value of total debt was $123.5 million and $124.8 million, respectively, compared to a carrying amount of $122.0 million and $122.7 million, respectively. The Company did not have any other financial liabilities within the scope of the fair value disclosure requirements as of March 31, 2018. 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. There were no triggering events that occurred during the three months ended March 31, 2018 that would warrant interim impairment testing. |
INVENTORIES
INVENTORIES | 3 Months Ended |
Mar. 31, 2018 | |
INVENTORIES [Abstract] | |
INVENTORIES | 5. INVENTORIES The components of inventories are as follows: March 31, December 31, 2018 2017 Raw materials $ 52,315 $ 46,712 Work in progress 19,949 17,688 Finished goods 30,429 43,319 Inventories $ 102,693 $ 107,719 |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 3 Months Ended |
Mar. 31, 2018 | |
PROPERTY, PLANT AND EQUIPMENT [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT | 6. PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment consist of the following: March 31, December 31, 2018 2017 Land $ 2,266 $ 2,259 Buildings and improvements 31,362 30,761 Machinery and equipment 122,984 122,773 Construction in progress 2,209 1,511 158,821 157,304 Accumulated depreciation (115,499 ) (113,809 ) Property, plant and equipment, net $ 43,322 $ 43,495 Depreciation expense for the three months ended March 31, 2018 and 2017 was $3.2 million and $3.5 million, respectively. |
ACCRUED EXPENSES
ACCRUED EXPENSES | 3 Months Ended |
Mar. 31, 2018 | |
ACCRUED EXPENSES [Abstract] | |
ACCRUED EXPENSES | 7. ACCRUED EXPENSES Accrued expenses consist of the following: March 31, December 31, 2018 2017 Sales commissions $ 2,321 $ 2,461 Subcontracting labor 1,221 1,408 Salaries, bonuses and related benefits 14,097 16,531 Warranty accrual 1,606 1,769 Other 8,164 8,339 $ 27,409 $ 30,508 A tabular presentation of the activity within the warranty accrual account for the three months ended March 31, 2018 and 2017 is presented below: Three Months Ended March 31, 2018 2017 Balance, January 1 $ 1,769 $ 2,718 Adjustments related to pre-existing warranties (including changes in estimates) (143 ) (158 ) Less repair costs incurred (61 ) (50 ) Currency translation 41 30 Balance, March 31 $ 1,606 $ 2,540 |
DEBT
DEBT | 3 Months Ended |
Mar. 31, 2018 | |
DEBT [Abstract] | |
DEBT | 8. DEBT The Company has a Credit and Security Agreement with KeyBank National Association (as amended, the "CSA"). The CSA consists of (i) a term loan, with outstanding borrowings of $124.2 million and $125.0 million at March 31, 2018 and December 31, 2017, respectively and (ii) a $75 million revolving credit facility ("Revolver"), with no outstanding borrowings at March 31, 2018 or December 31, 2017. The CSA has a maturity date of December 11, 2022. At March 31, 2018 and December 31, 2017, the carrying value of the debt on the condensed consolidated balance sheet is reflected net of $2.2 million and $2.3 million, respectively, of deferred financing costs. The weighted-average interest rate in effect was 3.69% at March 31, 2018 and 3.38% at December 31, 2017 and consisted of LIBOR plus the Company's credit spread, as determined per the terms of the CSA. The Company incurred $1.2 million and $1.4 million of interest expense during the three months ended March 31, 2018 and March 31, 2017, respectively. The 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. 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 March 31, 2018, the Company was in compliance with its debt covenants, including its most restrictive covenant, the Leverage Ratio. |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Mar. 31, 2018 | |
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. 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 March 31, 2018. The Company's liabilities for uncertain tax positions totaled $31.3 million and $30.4 million at March 31, 2018 and December 31, 2017, respectively, of which $2.5 million is included in other current liabilities at each date. These amounts, if recognized, would reduce the Company's effective tax rate. As of March 31, 2018, approximately $2.5 million of the Company's liabilities for uncertain tax positions are expected to be resolved during 2018 by way of expiration of the related statute of limitations. 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 three months ended March 31, 2018 and 2017, the Company recognized $0.2 million and $0.3 million, respectively, in interest and penalties in the consolidated statements of operations. During the three months ended March 31, 2018 and 2017, the Company recognized zero and a benefit of 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 $3.4 million and $3.2 million accrued for the payment of interest and penalties at March 31, 2018 and December 31, 2017, respectively, which is included in both income taxes payable and liability for uncertain tax positions in the consolidated balance sheets. Tax Reform The Tax Cuts and Jobs Act (the "Act") was enacted on December 22, 2017. The Act reduces the U.S. federal corporate tax rate from 35% to 21%, requires companies to pay a one-time transition tax on earnings of certain foreign subsidiaries that were previously tax deferred and creates new taxes on certain foreign sourced earnings. At December 31, 2017, we had not completed our accounting for the tax effects of enactment of the Act; however, we had made a reasonable estimate of the effects on our existing deferred tax balances and the one-time transition tax in which we recognized a provisional amount of $18.1 million, which was included as a component of income tax expense from continuing operations. During the three months ended March 31, 2018, we continue to refine our calculations as additional analysis is completed. In addition, our estimates may also be affected as we gain a more thorough understanding of the tax law. Effective January 1, 2018, the Act subjects a U.S. shareholder to current tax on global intangible low-taxed income (GILTI) earned by certain foreign subsidiaries. The Company has elected an accounting policy to provide for the tax expense related to the GILTI in the period the tax is incurred. |
RETIREMENT FUND AND PROFIT SHAR
RETIREMENT FUND AND PROFIT SHARING PLAN | 3 Months Ended |
Mar. 31, 2018 | |
RETIREMENT FUND AND PROFIT SHARING PLAN [Abstract] | |
RETIREMENT FUND AND PROFIT SHARING PLAN | 10. 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 expense for the three months ended March 31, 2018 and 2017 amounted to $0.3 million in both periods. The Company's matching contribution is made in the form of Bel Fuse Inc. Class A common stock. As of March 31, 2018, the plan owned 71,616 and 141,652 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. The expense for the three months ended March 31, 2018 and 2017 amounted to approximately $0.1 million in both periods. As of March 31, 2018, 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. As discussed in Note 3 above, the Company has investments in a rabbi trust which are intended to fund the obligations of the SERP. The components of SERP expense are as follows: Three Months Ended March 31, 2018 2017 Service cost $ 183 $ 175 Interest cost 166 168 Net amortization 111 94 Net periodic benefit cost $ 460 $ 437 The service cost component of net benefit cost is presented within cost of sales or selling, general and administrative expense on the accompanying statements of operations, in accordance with where compensation cost for the related associate is reported. All other components of net benefit cost, including interest cost and net amortization noted above, are presented within other income/expense, net in the accompanying statements of operations. The following amounts are recognized net of tax in accumulated other comprehensive loss: March 31, December 31, 2018 2017 Prior service cost $ 1,071 $ 1,135 Net loss 3,685 3,732 $ 4,756 $ 4,867 |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE LOSS | 3 Months Ended |
Mar. 31, 2018 | |
ACCUMULATED OTHER COMPREHENSIVE LOSS [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE LOSS | 11. ACCUMULATED OTHER COMPREHENSIVE LOSS The components of accumulated other comprehensive loss at March 31, 2018 and December 31, 2017 are summarized below: March 31, December 31, 2018 2017 Foreign currency translation adjustment, net of taxes of ($826) at March 31, 2018 and ($801) at December 31, 2017 $ (12,520 ) $ (16,537 ) Unrealized holding gains on available-for-sale securities, net of taxes of $65 at March 31, 2018 and $85 at December 31, 2017 114 145 Unfunded SERP liability, net of taxes of ($1,609) at March 31, 2018 and ($1,635) at December 31, 2017 (3,147 ) (3,233 ) Accumulated other comprehensive loss $ (15,553 ) $ (19,625 ) Changes in accumulated other comprehensive loss by component during the three months ended March 31, 2018 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, 2018 $ (16,537 ) $ 145 $ (3,233 ) $ (19,625 ) Other comprehensive income before reclassifications 4,017 (31 ) 14 4,000 Amount reclassified from accumulated other comprehensive loss - - 72 (a) 72 Net current period other comprehensive income 4,017 (31 ) 86 4,072 Balance at March 31, 2018 $ (12,520 ) $ 114 $ (3,147 ) $ (15,553 ) (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. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 31, 2018 | |
COMMITMENTS AND CONTINGENCIES [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 12. COMMITMENTS AND CONTINGENCIES 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 condensed 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 March 31, 2018 and December 31, 2017. 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. In 2015, one of the Company’s subsidiaries in the PRC, Dongguan Transpower Electric Products Co., Ltd. (“Dongguan Transpower”), was provided notice of a claim by DG Yu Shing Industrial Development Company Limited against Dongguan Transpower and three other defendants for past due construction costs of approximately $3.2 million. In April 2018, the 3 rd 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. |
SEGMENTS
SEGMENTS | 3 Months Ended |
Mar. 31, 2018 | |
SEGMENTS [Abstract] | |
SEGMENTS | 13. 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: Three Months Ended March 31, 2018 2017 Net Sales to External Customers: North America $ 59,457 $ 60,430 Asia 38,620 35,812 Europe 20,174 17,426 $ 118,251 $ 113,668 Net Sales: North America $ 62,570 $ 63,155 Asia 56,139 56,411 Europe 24,312 20,385 Less intercompany net sales (24,770 ) (26,283 ) $ 118,251 $ 113,668 Income from Operations: North America $ (302 ) $ 992 Asia (85 ) 1,036 Europe 824 327 $ 437 $ 2,355 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. |
BASIS OF PRESENTATION AND ACC21
BASIS OF PRESENTATION AND ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2018 | |
BASIS OF PRESENTATION AND ACCOUNTING POLICIES [Abstract] | |
Recently Adopted Accounting Standards | Recently Adopted Accounting Standards In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) Upon adoption, the new revenue standards replaced most existing revenue recognition guidance in U.S. GAAP. Based on our review of representative samples of contracts and other forms of agreements with customers globally and our evaluation of the provisions under the five-step model specified by the new revenue standards, the Company has implemented changes with respect to timing of revenue recognition primarily related to arrangements for which the customer takes the Company's products from a facility holding consignment inventory. In connection with the modified retrospective application of the new revenue standards, we recorded an adjustment to increase retained earnings of $3.4 million upon the January 1, 2018 adoption date. Apart from this adjustment and the inclusion of additional required disclosures in Note 2, the adoption of the new revenue standards did not have a material impact on the Company's condensed consolidated financial statements. 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 August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments guidance was adopted by the Company effective January 1, 2018 and it did not have any impact on the Company's condensed consolidated statement of cash flows in the periods presented. 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 was 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 was adopted by the Company effective January 1, 2018 and it did not have a material impact on the Company's condensed consolidated financial position or results of operations. In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business 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") |
Accounting Standards Issued But Not Yet Adopted | Accounting Standards Issued But Not Yet Adopted In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) , to provide a new comprehensive model for lease accounting. Under In January 2017, the FASB issued Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment In February 2018, the FASB issued ASU 2018-02, Income Statement – Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income We are currently in the process of evaluating this new standard update. |
REVENUE (Tables)
REVENUE (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
REVENUE [Abstract] | |
Disaggregation of Revenue | The following table provides information about disaggregated revenue by product group and sales channel, and includes a reconciliation of the disaggregated revenue to our reportable segments: Three Months Ended March 31, 2018 North America Asia Europe Consolidated By Product Group: Connectivity solutions $ 31,046 $ 3,420 $ 8,453 $ 42,919 Magnetic solutions 8,051 27,825 2,352 38,228 Power solutions and protection 20,360 7,375 9,369 37,104 $ 59,457 $ 38,620 $ 20,174 $ 118,251 By Sales Channel: Direct to customer $ 37,897 $ 32,927 $ 14,193 $ 85,017 Through distribution 21,560 5,693 5,981 33,234 $ 59,457 $ 38,620 $ 20,174 $ 118,251 |
Cumulative Effect of Changes Made to Consolidated Balance Sheet | The cumulative effect of the changes made to our consolidated January 1, 2018 balance sheet for the adoption of ASC 606 were as follows: Balance at Adjustments Balance at December 31, Due to January 1, 2017 ASC 606 2018 Balance Sheet Unbilled receivables $ - $ 14,536 $ 14,536 Inventory 107,719 (11,044 ) 96,675 Other current liabilities 6,204 43 6,247 Retained earnings 147,807 3,449 151,256 |
Impact of Adoption of Balance Sheet and Consolidated Statement of Operations | In accordance with the new revenue standard requirements, the disclosure of the impact of adoption on our balance sheet as of March 31, 2018 and consolidated statement of operations for the period ended March 31, 2018 was as follows: As of March 31, 2018 Balances Effect of As Without Adoption Change Reported of ASC 606 Higher/(Lower) Balance Sheet Assets Unbilled receivables $ 13,643 $ - $ 13,643 Inventories 102,693 112,650 (9,957 ) Liabilities Other current liabilities 7,664 7,553 111 Equity Retained earnings 149,171 145,596 3,575 Three Months Ended March 31, 2018 Balances Effect of As Without Adoption Change Reported of ASC 606 Higher/(Lower) Statement of Operations Net sales $ 118,251 $ 119,092 $ (841 ) Cost of sales 97,118 98,205 (1,087 ) Operating income 437 191 246 Provision for income taxes 325 260 65 Net earnings $ (1,303 ) $ (1,484 ) $ 181 |
Contract Assets and Contract Liabilities | The balances of the Company's contract assets and contract liabilities at March 31, 2018 are as follows: March 31, January 1, 2018 2018 Contract assets - current (unbilled receivable) $ 13,643 $ 14,536 Contract liabilities - current (deferred revenue) $ 1,829 $ 855 |
(LOSS) EARNINGS PER SHARE (Tabl
(LOSS) EARNINGS PER SHARE (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
(LOSS) EARNINGS PER SHARE [Abstract] | |
Schedule of earnings and weighted average shares outstanding used in the computation of basic and diluted (loss) earnings per share | The following table sets forth the calculation of basic and diluted net (loss) earnings per common share under the two-class method for the three months ended March 31, 2018 and 2017: Three Months Ended March 31, 2018 2017 Numerator: Net (loss) earnings $ (1,303 ) $ 746 Less dividends declared: Class A 130 130 Class B 700 699 Undistributed loss $ (2,133 ) $ (83 ) Undistributed loss allocation - basic and diluted: Class A undistributed loss $ (370 ) $ (14 ) Class B undistributed loss (1,763 ) (69 ) Total undistributed loss $ (2,133 ) $ (83 ) Net earnings (loss) allocation - basic and diluted: Class A net (loss) earnings $ (240 ) $ 116 Class B net (loss) earnings (1,063 ) 630 Net (loss) earnings $ (1,303 ) $ 746 Denominator: Weighted-average shares outstanding: Class A - basic and diluted 2,175 2,175 Class B - basic and diluted 9,856 9,845 Net (loss) earnings per share: Class A - basic and diluted $ (0.11 ) $ 0.05 Class B - basic and diluted $ (0.11 ) $ 0.06 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
INVENTORIES [Abstract] | |
Components of inventories | The components of inventories are as follows: March 31, December 31, 2018 2017 Raw materials $ 52,315 $ 46,712 Work in progress 19,949 17,688 Finished goods 30,429 43,319 Inventories $ 102,693 $ 107,719 |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
PROPERTY, PLANT AND EQUIPMENT [Abstract] | |
Property, plant and equipment | Property, plant and equipment consist of the following: March 31, December 31, 2018 2017 Land $ 2,266 $ 2,259 Buildings and improvements 31,362 30,761 Machinery and equipment 122,984 122,773 Construction in progress 2,209 1,511 158,821 157,304 Accumulated depreciation (115,499 ) (113,809 ) Property, plant and equipment, net $ 43,322 $ 43,495 |
ACCRUED EXPENSES (Tables)
ACCRUED EXPENSES (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
ACCRUED EXPENSES [Abstract] | |
Accrued expenses | Accrued expenses consist of the following: March 31, December 31, 2018 2017 Sales commissions $ 2,321 $ 2,461 Subcontracting labor 1,221 1,408 Salaries, bonuses and related benefits 14,097 16,531 Warranty accrual 1,606 1,769 Other 8,164 8,339 $ 27,409 $ 30,508 |
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 three months ended March 31, 2018 and 2017 is presented below: Three Months Ended March 31, 2018 2017 Balance, January 1 $ 1,769 $ 2,718 Adjustments related to pre-existing warranties (including changes in estimates) (143 ) (158 ) Less repair costs incurred (61 ) (50 ) Currency translation 41 30 Balance, March 31 $ 1,606 $ 2,540 |
RETIREMENT FUND AND PROFIT SH27
RETIREMENT FUND AND PROFIT SHARING PLAN (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
RETIREMENT FUND AND PROFIT SHARING PLAN [Abstract] | |
Components of SERP expense | The components of SERP expense are as follows: Three Months Ended March 31, 2018 2017 Service cost $ 183 $ 175 Interest cost 166 168 Net amortization 111 94 Net periodic benefit cost $ 460 $ 437 |
Gross amounts recognized in accumulated other comprehensive loss, net of tax | The following amounts are recognized net of tax in accumulated other comprehensive loss: March 31, December 31, 2018 2017 Prior service cost $ 1,071 $ 1,135 Net loss 3,685 3,732 $ 4,756 $ 4,867 |
ACCUMULATED OTHER COMPREHENSI28
ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
ACCUMULATED OTHER COMPREHENSIVE LOSS [Abstract] | |
Components of accumulated other comprehensive loss | The components of accumulated other comprehensive loss at March 31, 2018 and December 31, 2017 are summarized below: March 31, December 31, 2018 2017 Foreign currency translation adjustment, net of taxes of ($826) at March 31, 2018 and ($801) at December 31, 2017 $ (12,520 ) $ (16,537 ) Unrealized holding gains on available-for-sale securities, net of taxes of $65 at March 31, 2018 and $85 at December 31, 2017 114 145 Unfunded SERP liability, net of taxes of ($1,609) at March 31, 2018 and ($1,635) at December 31, 2017 (3,147 ) (3,233 ) Accumulated other comprehensive loss $ (15,553 ) $ (19,625 ) |
Changes in accumulated other comprehensive loss by component | Changes in accumulated other comprehensive loss by component during the three months ended March 31, 2018 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, 2018 $ (16,537 ) $ 145 $ (3,233 ) $ (19,625 ) Other comprehensive income before reclassifications 4,017 (31 ) 14 4,000 Amount reclassified from accumulated other comprehensive loss - - 72 (a) 72 Net current period other comprehensive income 4,017 (31 ) 86 4,072 Balance at March 31, 2018 $ (12,520 ) $ 114 $ (3,147 ) $ (15,553 ) (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. |
SEGMENTS (Tables)
SEGMENTS (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
SEGMENTS [Abstract] | |
Key financial data | The following is a summary of key financial data: Three Months Ended March 31, 2018 2017 Net Sales to External Customers: North America $ 59,457 $ 60,430 Asia 38,620 35,812 Europe 20,174 17,426 $ 118,251 $ 113,668 Net Sales: North America $ 62,570 $ 63,155 Asia 56,139 56,411 Europe 24,312 20,385 Less intercompany net sales (24,770 ) (26,283 ) $ 118,251 $ 113,668 Income from Operations: North America $ (302 ) $ 992 Asia (85 ) 1,036 Europe 824 327 $ 437 $ 2,355 |
BASIS OF PRESENTATION AND ACC30
BASIS OF PRESENTATION AND ACCOUNTING POLICIES (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Retained earnings | $ 149,171 | $ 147,807 |
ASU 2014-09 [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Retained earnings | 151,256 | |
Adjustments Due to ASC 606 [Member] | ASU 2014-09 [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Retained earnings | $ 3,575 | $ 3,449 |
REVENUE, Significant Payment Te
REVENUE, Significant Payment Terms (Details) | 3 Months Ended |
Mar. 31, 2018 | |
Significant Payment Terms [Abstract] | |
Period of payment for products sold under consignment contracts due from customer pulling the product from the hub | 60 days |
Minimum [Member] | |
Warranties [Abstract] | |
Standard warranty period of product | 1 year |
Significant Payment Terms [Abstract] | |
Period of payment for products sold under consignment contracts due from customer pulling the product from the hub | 20 days |
Maximum [Member] | |
Warranties [Abstract] | |
Standard warranty period of product | 3 years |
Significant Payment Terms [Abstract] | |
Period of payment for products sold under consignment contracts due from customer pulling the product from the hub | 30 days |
Direct to Customer [Member] | Minimum [Member] | |
Significant Payment Terms [Abstract] | |
Period of payment for products sold due | 30 days |
Direct to Customer [Member] | Maximum [Member] | |
Significant Payment Terms [Abstract] | |
Period of payment for products sold due | 90 days |
Through Distribution [Member] | Minimum [Member] | |
Significant Payment Terms [Abstract] | |
Period of payment for products sold due | 30 days |
Through Distribution [Member] | Maximum [Member] | |
Significant Payment Terms [Abstract] | |
Period of payment for products sold due | 90 days |
Power Solutions and Protection [Member] | Maximum [Member] | |
Licensing Agreements [Abstract] | |
Payment received on reporting date, quarterly or annual | 30 days |
REVENUE, Disaggregation of Reve
REVENUE, Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Disaggregation of Revenue [Line Items] | ||
Disaggregation of revenue | $ 118,251 | $ 113,668 |
Direct to Customer [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregation of revenue | 85,017 | |
Through Distribution [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregation of revenue | 33,234 | |
Connectivity Solutions [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregation of revenue | 42,919 | |
Magnetic Solutions [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregation of revenue | 38,228 | |
Power Solutions and Protection [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregation of revenue | 37,104 | |
North America [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregation of revenue | 59,457 | |
North America [Member] | Direct to Customer [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregation of revenue | 37,897 | |
North America [Member] | Through Distribution [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregation of revenue | 21,560 | |
North America [Member] | Connectivity Solutions [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregation of revenue | 31,046 | |
North America [Member] | Magnetic Solutions [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregation of revenue | 8,051 | |
North America [Member] | Power Solutions and Protection [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregation of revenue | 20,360 | |
Asia [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregation of revenue | 38,620 | |
Asia [Member] | Direct to Customer [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregation of revenue | 32,927 | |
Asia [Member] | Through Distribution [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregation of revenue | 5,693 | |
Asia [Member] | Connectivity Solutions [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregation of revenue | 3,420 | |
Asia [Member] | Magnetic Solutions [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregation of revenue | 27,825 | |
Asia [Member] | Power Solutions and Protection [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregation of revenue | 7,375 | |
Europe [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregation of revenue | 20,174 | |
Europe [Member] | Direct to Customer [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregation of revenue | 14,193 | |
Europe [Member] | Through Distribution [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregation of revenue | 5,981 | |
Europe [Member] | Connectivity Solutions [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregation of revenue | 8,453 | |
Europe [Member] | Magnetic Solutions [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregation of revenue | 2,352 | |
Europe [Member] | Power Solutions and Protection [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregation of revenue | $ 9,369 |
REVENUE, Cumulative Effect of C
REVENUE, Cumulative Effect of Changes made to Consolidated Balance Sheet (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Balance Sheet [Abstract] | ||
Unbilled receivables | $ 13,643 | $ 0 |
Inventory | 102,693 | 107,719 |
Other current liabilities | 7,664 | 6,204 |
Retained earnings | 149,171 | 147,807 |
ASU 2014-09 [Member] | ||
Balance Sheet [Abstract] | ||
Unbilled receivables | 14,536 | |
Inventory | 96,675 | |
Other current liabilities | 6,247 | |
Retained earnings | 151,256 | |
Adjustments Due to ASC 606 [Member] | ASU 2014-09 [Member] | ||
Balance Sheet [Abstract] | ||
Unbilled receivables | 13,643 | 14,536 |
Inventory | (9,957) | (11,044) |
Other current liabilities | 111 | 43 |
Retained earnings | 3,575 | $ 3,449 |
Balances Without Adoption of ASC 606 [Member] | ASU 2014-09 [Member] | ||
Balance Sheet [Abstract] | ||
Unbilled receivables | 0 | |
Inventory | 112,650 | |
Other current liabilities | 7,553 | |
Retained earnings | $ 145,596 |
REVENUE, Disclosure of Impact o
REVENUE, Disclosure of Impact of Adoption on Balance Sheet and Consolidated Statement of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Assets [Abstract] | |||
Unbilled receivables | $ 13,643 | $ 0 | |
Inventories | 102,693 | 107,719 | |
Liabilities [Abstract] | |||
Other current liabilities | 7,664 | 6,204 | |
Equity [Abstract] | |||
Retained earnings | 149,171 | 147,807 | |
Statement of Operations [Abstract] | |||
Net sales | 118,251 | $ 113,668 | |
Cost of sales | 97,118 | 90,305 | |
Operating income | 437 | 2,355 | |
Provision for income taxes | 325 | (23) | |
Net earnings | (1,303) | $ 746 | |
ASU 2014-09 [Member] | |||
Assets [Abstract] | |||
Unbilled receivables | 14,536 | ||
Inventories | 96,675 | ||
Liabilities [Abstract] | |||
Other current liabilities | 6,247 | ||
Equity [Abstract] | |||
Retained earnings | 151,256 | ||
Balances Without Adoption of ASC 606 [Member] | ASU 2014-09 [Member] | |||
Assets [Abstract] | |||
Unbilled receivables | 0 | ||
Inventories | 112,650 | ||
Liabilities [Abstract] | |||
Other current liabilities | 7,553 | ||
Equity [Abstract] | |||
Retained earnings | 145,596 | ||
Statement of Operations [Abstract] | |||
Net sales | 119,092 | ||
Cost of sales | 98,205 | ||
Operating income | 191 | ||
Provision for income taxes | 260 | ||
Net earnings | (1,484) | ||
Effect of Change Higher/(Lower) [Member] | ASU 2014-09 [Member] | |||
Assets [Abstract] | |||
Unbilled receivables | 13,643 | 14,536 | |
Inventories | (9,957) | (11,044) | |
Liabilities [Abstract] | |||
Other current liabilities | 111 | 43 | |
Equity [Abstract] | |||
Retained earnings | 3,575 | $ 3,449 | |
Statement of Operations [Abstract] | |||
Net sales | (841) | ||
Cost of sales | (1,087) | ||
Operating income | 246 | ||
Provision for income taxes | 65 | ||
Net earnings | $ 181 |
REVENUE, Contract Assets and Co
REVENUE, Contract Assets and Contract Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2017 | |
Contract with Customer, Asset and Liability [Abstract] | ||
Contract assets - current (unbilled receivable) | $ 13,643 | $ 0 |
Contract liabilities - current (deferred revenue) | 1,829 | |
Deferred revenue | 900 | |
Revenues | 500 | |
Revenue, remaining performance obligation | $ 17,400 | |
ASU 2014-09 [Member] | ||
Contract with Customer, Asset and Liability [Abstract] | ||
Contract assets - current (unbilled receivable) | 14,536 | |
Contract liabilities - current (deferred revenue) | $ 855 |
REVENUE, Transaction Price Allo
REVENUE, Transaction Price Allocated to Future Obligations (Details) | 3 Months Ended |
Mar. 31, 2018 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-01-01 | |
Transaction Price Allocated to Future Obligations [Abstract] | |
Remaining performance obligation percentage | 36.00% |
Remaining performance satisfaction period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |
Transaction Price Allocated to Future Obligations [Abstract] | |
Remaining performance obligation percentage | 61.00% |
Remaining performance satisfaction period | 1 year |
(LOSS) EARNINGS PER SHARE (Deta
(LOSS) EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Numerator [Abstract] | ||
Net (loss) earnings | $ (1,303) | $ 746 |
Undistributed loss | (2,133) | (83) |
Class A [Member] | ||
Numerator [Abstract] | ||
Net (loss) earnings | (240) | 116 |
Less dividends declared | 130 | 130 |
Undistributed loss | $ (370) | $ (14) |
Weighted-average shares outstanding [Abstract] | ||
Basic and diluted (in shares) | 2,175 | 2,175 |
Net (loss) earnings per share [Abstract] | ||
Basic and diluted (in dollars per share) | $ (0.11) | $ 0.05 |
Class B [Member] | ||
Numerator [Abstract] | ||
Net (loss) earnings | $ (1,063) | $ 630 |
Less dividends declared | 700 | 699 |
Undistributed loss | $ (1,763) | $ (69) |
Weighted-average shares outstanding [Abstract] | ||
Basic and diluted (in shares) | 9,856 | 9,845 |
Net (loss) earnings per share [Abstract] | ||
Basic and diluted (in dollars per share) | $ (0.11) | $ 0.06 |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | |
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 | 123.5 | $ 124.8 | |
Carrying amount of long-term debt | 122 | 122.7 | |
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 | 1.5 | |
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 | 0.2 | |
Nonrecurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Financial assets accounted at fair value | $ 0 | $ 0 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Components of inventories [Abstract] | ||
Raw materials | $ 52,315 | $ 46,712 |
Work in progress | 19,949 | 17,688 |
Finished goods | 30,429 | 43,319 |
Inventories | $ 102,693 | $ 107,719 |
PROPERTY, PLANT AND EQUIPMENT40
PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Property, plant and equipment [Abstract] | |||
Property, plant and equipment, gross | $ 158,821 | $ 157,304 | |
Accumulated depreciation | (115,499) | (113,809) | |
Property, plant and equipment, net | 43,322 | 43,495 | |
Depreciation expense | 3,200 | $ 3,500 | |
Land [Member] | |||
Property, plant and equipment [Abstract] | |||
Property, plant and equipment, gross | 2,266 | 2,259 | |
Buildings and Improvements [Member] | |||
Property, plant and equipment [Abstract] | |||
Property, plant and equipment, gross | 31,362 | 30,761 | |
Machinery and Equipment [Member] | |||
Property, plant and equipment [Abstract] | |||
Property, plant and equipment, gross | 122,984 | 122,773 | |
Construction in Progress [Member] | |||
Property, plant and equipment [Abstract] | |||
Property, plant and equipment, gross | $ 2,209 | $ 1,511 |
ACCRUED EXPENSES (Details)
ACCRUED EXPENSES (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
ACCRUED EXPENSES [Abstract] | |||
Sales commissions | $ 2,321 | $ 2,461 | |
Subcontracting labor | 1,221 | 1,408 | |
Salaries, bonuses and related benefits | 14,097 | 16,531 | |
Warranty accrual | 1,606 | 1,769 | |
Other | 8,164 | 8,339 | |
Accrued expenses | 27,409 | $ 30,508 | |
Warranty Accrual Activity Account [Roll Forward] | |||
Balance | 1,769 | $ 2,718 | |
Adjustments related to pre-existing warranties (including changes in estimates) | (143) | (158) | |
Less repair costs incurred | (61) | (50) | |
Currency translation | 41 | 30 | |
Balance | $ 1,606 | $ 2,540 |
DEBT (Details)
DEBT (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Line of Credit Facility [Line Items] | |||
Deferred finance cost net | $ 2.2 | $ 2.3 | |
KeyBank [Member] | |||
Line of Credit Facility [Line Items] | |||
Line of credit facility, maturity date | Dec. 11, 2022 | ||
Weighted average interest rate | 3.69% | 3.38% | |
Interest expense incurred | $ 1.2 | $ 1.4 | |
KeyBank [Member] | Revolving Credit Facility [Member] | |||
Line of Credit Facility [Line Items] | |||
Outstanding borrowings | 0 | $ 0 | |
Available line of credit | 75 | 75 | |
KeyBank [Member] | Term Loan [Member] | |||
Line of Credit Facility [Line Items] | |||
Outstanding borrowings | $ 124.2 | $ 125 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Income Tax Contingency [Line Items] | |||
Liability for uncertain tax positions | $ 31.3 | $ 30.4 | |
Liability for uncertain tax positions - current | 2.5 | 2.5 | |
Liability for uncertain positions expected to be resolved in next fiscal year | 2.5 | ||
Interest and penalties uncertain tax positions recognized | 0.2 | $ 0.3 | |
Benefit on reversal of interest and penalties | 0 | ||
Accrued interest and penalties uncertain tax positions | $ 3.4 | $ 3.2 | |
Federal statutory income tax rate | 21.00% | 35.00% | |
One-time transition tax | $ 18.1 | ||
Maximum [Member] | |||
Income Tax Contingency [Line Items] | |||
Benefit on reversal of interest and penalties | $ (0.1) |
RETIREMENT FUND AND PROFIT SH44
RETIREMENT FUND AND PROFIT SHARING PLAN (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Class A Common Stock [Member] | UNITED STATES | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Shares owned by plan (in shares) | 71,616 | ||
Class B Common Stock [Member] | UNITED STATES | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Shares owned by plan (in shares) | 141,652 | ||
401K Plan [Member] | UNITED STATES | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Compensation expense | $ 300 | $ 300 | |
Retirement Fund [Member] | HONG KONG | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Compensation expense | $ 100 | 100 | |
Retirement Fund [Member] | Class A Common Stock [Member] | HONG KONG | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Shares owned by plan (in shares) | 3,323 | ||
Retirement Fund [Member] | Class B Common Stock [Member] | HONG KONG | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Shares owned by plan (in shares) | 17,342 | ||
SERP [Member] | |||
Components of SERP expense [Abstract] | |||
Service cost | $ 183 | 175 | |
Interest cost | 166 | 168 | |
Net amortization | 111 | 94 | |
Net periodic benefit cost | 460 | $ 437 | |
Amounts recognized in accumulated other comprehensive loss, pretax [Abstract] | |||
Prior service cost | 1,071 | $ 1,135 | |
Net loss | 3,685 | 3,732 | |
Total amounts recognized in accumulated other comprehensive loss | $ 4,756 | $ 4,867 |
ACCUMULATED OTHER COMPREHENSI45
ACCUMULATED OTHER COMPREHENSIVE LOSS, Components of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Accumulated other comprehensive loss [Abstract] | ||
Foreign currency translation adjustment, net of taxes of ($826) at March 31, 2018 and ($801) at December 31, 2017 | $ (12,520) | $ (16,537) |
Unrealized holding gains on available-for-sale securities, net of taxes of $65 at March 31, 2018 and $85 at December 31, 2017 | 114 | 145 |
Unfunded SERP liability, net of taxes of ($1,609) at March 31, 2018 and ($1,635) at December 31, 2017 | (3,147) | (3,233) |
Accumulated other comprehensive loss | (15,553) | (19,625) |
Accumulated other comprehensive loss, tax [Abstract] | ||
Foreign currency translation adjustment, tax | (826) | (801) |
Unrealized holding gains on available-for-sale securities, tax | 65 | 85 |
Change in unfunded SERP liability, tax | $ (1,609) | $ (1,635) |
ACCUMULATED OTHER COMPREHENSI46
ACCUMULATED OTHER COMPREHENSIVE LOSS, Changes in Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | ||
Changes in Accumulated Other Comprehensive Loss by Component [Roll Forward] | |||
Balance | $ 157,960 | ||
Other comprehensive income before reclassifications | 4,000 | ||
Amount reclassified from accumulated other comprehensive loss | 72 | ||
Net current period other comprehensive income | 4,072 | $ 1,693 | |
Balance | 164,175 | ||
Accumulated Other Comprehensive Income (Loss) [Member] | |||
Changes in Accumulated Other Comprehensive Loss by Component [Roll Forward] | |||
Balance | (19,625) | ||
Balance | (15,553) | ||
Foreign Currency Translation Adjustment [Member] | |||
Changes in Accumulated Other Comprehensive Loss by Component [Roll Forward] | |||
Balance | (16,537) | ||
Other comprehensive income before reclassifications | 4,017 | ||
Amount reclassified from accumulated other comprehensive loss | 0 | ||
Net current period other comprehensive income | 4,017 | ||
Balance | (12,520) | ||
Unrealized Holding Gains on Available-for-Sale Securities [Member] | |||
Changes in Accumulated Other Comprehensive Loss by Component [Roll Forward] | |||
Balance | 145 | ||
Other comprehensive income before reclassifications | (31) | ||
Amount reclassified from accumulated other comprehensive loss | 0 | ||
Net current period other comprehensive income | (31) | ||
Balance | 114 | ||
Unfunded SERP Liability [Member] | |||
Changes in Accumulated Other Comprehensive Loss by Component [Roll Forward] | |||
Balance | (3,233) | ||
Other comprehensive income before reclassifications | 14 | ||
Amount reclassified from accumulated other comprehensive loss | [1] | 72 | |
Net current period other comprehensive income | 86 | ||
Balance | $ (3,147) | ||
[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. |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018USD ($)Defendant | Dec. 31, 2015Subsidiary | |
Arezzo Revenue Agency [Member] | ||
Loss Contingencies [Line Items] | ||
Estimated liability | $ 12 | |
Setec [Member] | ||
Loss Contingencies [Line Items] | ||
Number of subsidiaries named in the lawsuit | Subsidiary | 3 | |
DG Yu Shing Industrial Development Company Limited [Member] | Dongguan Transpower [Member] | ||
Loss Contingencies [Line Items] | ||
Damges sought | $ 3.2 | |
Number of defendants | Defendant | 3 |
SEGMENTS (Details)
SEGMENTS (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018USD ($)IndustrySegment | Mar. 31, 2017USD ($) | |
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 | $ 118,251 | $ 113,668 |
Net sales | 118,251 | 113,668 |
Income from operations | 437 | 2,355 |
North America [Member] | ||
Summary of key financial data [Abstract] | ||
Net sales | 59,457 | |
Asia [Member] | ||
Summary of key financial data [Abstract] | ||
Net sales | 38,620 | |
Europe [Member] | ||
Summary of key financial data [Abstract] | ||
Net sales | 20,174 | |
Reportable Operating Segments [Member] | North America [Member] | ||
Summary of key financial data [Abstract] | ||
Net sales to external customers | 59,457 | 60,430 |
Net sales | 62,570 | 63,155 |
Income from operations | (302) | 992 |
Reportable Operating Segments [Member] | Asia [Member] | ||
Summary of key financial data [Abstract] | ||
Net sales to external customers | 38,620 | 35,812 |
Net sales | 56,139 | 56,411 |
Income from operations | (85) | 1,036 |
Reportable Operating Segments [Member] | Europe [Member] | ||
Summary of key financial data [Abstract] | ||
Net sales to external customers | 20,174 | 17,426 |
Net sales | 24,312 | 20,385 |
Income from operations | 824 | 327 |
Intersegment Elimination [Member] | ||
Summary of key financial data [Abstract] | ||
Net sales | $ (24,770) | $ (26,283) |