Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Mar. 01, 2019 | Jun. 30, 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 Shell Company | false | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Ex Transition Period | false | ||
Entity Public Float | $ 237.6 | ||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
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 | 10,089,852 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Current Assets: | ||
Cash and cash equivalents | $ 53,911 | $ 69,354 |
Accounts receivable - less allowance for doubtful accounts of $1,638 and $1,745 at December 31, 2018 and 2017, respectively | 91,939 | 78,808 |
Inventories | 120,068 | 107,719 |
Unbilled receivables | 15,799 | 0 |
Other current assets | 8,792 | 10,218 |
Total current assets | 290,509 | 266,099 |
Property, plant and equipment, net | 43,932 | 43,495 |
Intangible assets, net | 62,689 | 69,366 |
Goodwill | 19,817 | 20,177 |
Deferred income taxes | 496 | 4,155 |
Other assets | 26,081 | 27,973 |
Total assets | 443,524 | 431,265 |
Current Liabilities: | ||
Accounts payable | 56,171 | 47,947 |
Accrued expenses | 32,290 | 30,508 |
Current maturities of long-term debt | 2,508 | 2,641 |
Other current liabilities | 15,061 | 6,204 |
Total current liabilities | 106,030 | 87,300 |
Long-term Liabilities: | ||
Long-term debt | 111,705 | 120,053 |
Liability for uncertain tax positions | 27,553 | 27,948 |
Minimum pension obligation and unfunded pension liability | 18,683 | 19,134 |
Deferred income taxes | 1,161 | 1,567 |
Other long-term liabilities | 1,922 | 17,303 |
Total liabilities | 267,054 | 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 | 31,387 | 28,575 |
Retained earnings | 168,695 | 147,807 |
Accumulated other comprehensive loss | (24,838) | (19,625) |
Total stockholders' equity | 176,470 | 157,960 |
Total liabilities and stockholders' equity | 443,524 | 431,265 |
Class A Common Stock [Member] | ||
Stockholders' equity: | ||
Common Stock | 217 | 217 |
Class B Common Stock [Member] | ||
Stockholders' equity: | ||
Common Stock | $ 1,009 | $ 986 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Current Assets: | ||
Accounts receivable, allowance for doubtful accounts | $ 1,638 | $ 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) | 10,092,352 | 9,859,352 |
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, 2018 | Dec. 31, 2017 | |
Net sales | $ 548,184 | $ 491,611 |
Cost of sales | 438,414 | 389,262 |
Gross profit | 109,770 | 102,349 |
Selling, general and administrative expenses | 79,937 | 84,655 |
Restructuring charges | 222 | 308 |
Income from operations | 29,611 | 17,386 |
Interest expense | (5,317) | (6,802) |
Interest income and other expense, net | (678) | (941) |
Earnings before provision for income taxes | 23,616 | 9,643 |
Provision for income taxes | 2,907 | 21,540 |
Net earnings (loss) available to common shareholders | 20,709 | (11,897) |
Class A Common Stock [Member] | ||
Net earnings (loss) available to common shareholders | $ 3,521 | $ (2,113) |
Net earnings (loss) per common share: | ||
Common shares - basic and diluted (in dollars per share) | $ 1.62 | $ (0.97) |
Weighted-average shares outstanding: | ||
Common shares - basic and diluted (in shares) | 2,175 | 2,175 |
Dividends paid per common share: | ||
Common shares (in dollars per share) | $ 0.24 | $ 0.24 |
Class B Common Stock [Member] | ||
Net earnings (loss) available to common shareholders | $ 17,188 | $ (9,784) |
Net earnings (loss) per common share: | ||
Common shares - basic and diluted (in dollars per share) | $ 1.73 | $ (0.99) |
Weighted-average shares outstanding: | ||
Common shares - basic and diluted (in shares) | 9,939 | 9,857 |
Dividends paid per common share: | ||
Common shares (in dollars per share) | $ 0.28 | $ 0.28 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) [Abstract] | ||
Net earnings (loss) | $ 20,709 | $ (11,897) |
Other comprehensive (loss) income: | ||
Currency translation adjustment, net of taxes | (6,098) | 12,439 |
Unrealized holding losses on marketable securities arising during the period, net of taxes | (133) | (279) |
Change in unfunded SERP liability, net of taxes | 1,018 | (488) |
Other comprehensive (loss) income: | (5,213) | 11,672 |
Comprehensive income (loss) | $ 15,496 | $ (225) |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Other comprehensive (loss) income: | ||
Foreign currency translation adjustment, tax expense | $ 51 | $ 183 |
Unrealized holding losses on marketable securities arising during the period, tax (benefit) | (85) | (177) |
Change in unfunded SERP liability, tax expense (benefit) | $ 954 | $ (237) |
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, 2016 | $ 158,434 | $ 161,287 | $ (31,297) | $ 217 | $ 985 | $ 27,242 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
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 losses 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) | ||||||||
Reclassification of APIC pool upon adoption of ASU 2016-09 | ASU 2016-09 [Member] | 0 | 1,696 | (1,696) | |||||||
Net earnings (loss) | (11,897) | (2,113) | (9,784) | (11,897) | ||||||
Balance at Dec. 31, 2017 | 157,960 | 147,807 | (19,625) | 217 | 986 | 28,575 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Effect of adoption of ASU 2014-09 (Topic 606) | ASU 2014-09 [Member] | 3,497 | 3,497 | ||||||||
Cash dividends declared on common stock | (522) | (2,796) | $ (522) | $ (2,796) | ||||||
Issuance of restricted common stock | 0 | 26 | (26) | |||||||
Forfeiture of restricted common stock | 0 | (3) | 3 | |||||||
Foreign currency translation adjustment, net of taxes | (6,098) | (6,098) | ||||||||
Unrealized holding losses on marketable securities arising during the year, net of taxes | (133) | (133) | ||||||||
Stock-based compensation expense | 2,835 | 2,835 | ||||||||
Change in unfunded SERP liability, net of taxes | 1,018 | 1,018 | ||||||||
Net earnings (loss) | 20,709 | $ 3,521 | $ 17,188 | 20,709 | ||||||
Balance at Dec. 31, 2018 | $ 176,470 | $ 168,695 | $ (24,838) | $ 217 | $ 1,009 | $ 31,387 |
CONSOLIDATED STATEMENTS OF ST_2
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY [Abstract] | ||
Foreign currency translation adjustment, tax expense | $ 51 | $ 183 |
Unrealized holding losses on marketable securities arising during the period, tax (benefit) | (85) | (177) |
Change in unfunded SERP liability, tax (benefit) expense | $ 954 | $ (237) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS $ in Thousands | 12 Months Ended | |
Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Cash flows from operating activities: | ||
Net earnings (loss) | $ 20,709 | $ (11,897) |
Adjustments to reconcile net earnings (loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 18,207 | 20,718 |
Stock-based compensation | 2,835 | 3,030 |
Amortization of deferred financing costs | 531 | 2,259 |
Deferred income taxes | 2,490 | (315) |
Unrealized (gains) losses on foreign currency revaluation | (2,663) | 2,770 |
Loss on disposal of property, plant and equipment | 141 | 109 |
Other, net | 795 | 1,897 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (13,004) | (2,948) |
Unbilled receivables | (1,263) | 0 |
Inventories | (24,735) | (6,160) |
Other current assets | 966 | (2,423) |
Other assets | 922 | (1,621) |
Account payable | 8,995 | (1,426) |
Accrued expenses | 1,911 | (1,861) |
Other liabilities | (15,708) | 16,566 |
Income taxes payable | 8,968 | 5,422 |
Net cash provided by operating activities | 10,097 | 24,120 |
Cash flows from investing activities: | ||
Purchase of property, plant and equipment | (11,594) | (6,425) |
Payment for acquisition, net of cash acquired | (2,177) | 0 |
Proceeds from surrender of company-owned life insurance | 433 | 0 |
Purchase of company-owned life insurance | (433) | 0 |
Proceeds from sale of marketable securities within rabbi trust | 1,348 | 0 |
Purchase of marketable securities within rabbi trust | (1,348) | 0 |
Proceeds from disposal/sale of property, plant and equipment | 77 | 76 |
Net cash used in investing activities | (13,694) | (6,349) |
Cash flows from financing activities: | ||
Dividends paid to common shareholders | (3,295) | (3,281) |
Deferred financing costs | 0 | (2,012) |
Borrowings under revolving credit line | 7,500 | 6,000 |
Repayments under revolving credit line | (7,500) | (6,000) |
Reduction in notes payable | 0 | (225) |
Proceeds from long-term debt | 0 | 125,000 |
Repayments of long-term debt | (9,012) | (143,799) |
Net cash used in financing activities | (12,307) | (24,317) |
Effect of exchange rate changes on cash | 461 | 2,489 |
Net decrease in cash and cash equivalents | (15,443) | (4,057) |
Cash and cash equivalents - beginning of year | 69,354 | 73,411 |
Cash and cash equivalents - end of year | 53,911 | 69,354 |
Cash paid during the year for: | ||
Income tax payments, net of refunds received | 7,483 | 756 |
Interest payments | 4,775 | 4,353 |
Details of acquisition: | ||
Goodwill | 19,817 | 20,177 |
Cash paid for acquisition, net of cash acquired | 2,177 | 0 |
BCMZ [Member] | ||
Cash flows from investing activities: | ||
Payment for acquisition, net of cash acquired | (2,177) | 0 |
Details of acquisition: | ||
Fair value of identifiable net assets acquired | 1,298 | 0 |
Goodwill | 1,290 | 0 |
Net assets acquired | 2,588 | 0 |
Fair value of consideration transferred | 2,588 | 0 |
Less: Cash acquired in acquisition | (411) | 0 |
Cash paid for acquisition, net of cash acquired | $ 2,177 | $ 0 |
DESCRIPTION OF BUSINESS AND SUM
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2018 | |
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 gains (losses) of $2.7 million and ($2.8) million for the years ended December 31, 2018 and 2017, 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 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. Product Warranties – Product Returns 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 1 to 16 years, on a straight-line basis to their estimated residual values and periodically review them for impairment. Total identifiable intangible assets comprise 14.1% and 16.1% in 2018 and 2017, 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: Years Ended December 31, 2018 2017 Numerator: Net earnings (loss) $ 20,709 $ (11,897 ) Less dividends declared: Class A 522 522 Class B 2,796 2,757 Undistributed earnings (loss) $ 17,391 $ (15,176 ) Undistributed earnings (loss) allocation - basic and diluted: Class A undistributed earnings (loss) $ 2,999 $ (2,635 ) Class B undistributed earnings (loss) 14,392 (12,541 ) Total undistributed earnings (loss) $ 17,391 $ (15,176 ) Net earnings (loss) allocation - basic and diluted: Class A net earnings (loss) $ 3,521 $ (2,113 ) Class B net earnings (loss) 17,188 (9,784 ) Net earnings (loss) $ 20,709 $ (11,897 ) Denominator: Weighted average shares outstanding: Class A - basic and diluted 2,175 2,175 Class B - basic and diluted 9,939 9,857 Net earnings (loss) per share: Class A - basic and diluted $ 1.62 $ (0.97 ) Class B - basic and diluted $ 1.73 $ (0.99 ) 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 and accrued expenses, 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 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 3, the adoption of the new revenue standards did not have a material impact on the Company's 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 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 . Prior U.S. GAAP prohibited 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 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") 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 prior GAAP, excess tax benefits were recognized in additional paid-in capital while tax deficiencies were 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 Accounting Standards Issued But Not Yet Adopted In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) ("ASU 2016-02") The Company will adopt ASU 2016-02 effective January 1, 2019 using the modified retrospective approach. In connection with the adoption, we will elect to utilize the Comparatives Under 840 Option whereby the Company will continue to present prior period financial statements and disclosures under ASC 840. In addition, we will elect the transition package of three practical expedients permitted within the standard, which eliminates the requirements to reassess prior conclusions about lease identification, lease classification and initial direct costs. Further, we will elect a short-term lease exception policy, permitting us to not apply the recognition requirements of this standard to short-term leases (i.e. leases with terms of 12 months or less) and an accounting policy to account for lease and non-lease components as a single component for certain classes of assets. We are finalizing the necessary changes to our accounting policies, processes, disclosures and internal control over financial reporting, and have implemented a new lease system to facilitate the requirements of the new standard. Adoption of the new standard is expected to result in the recording of right-of-use assets and lease liabilities related to our operating leases, each in an amount ranging from $18-$22 million, on our consolidated balance sheet as of January 1, 2019. The difference between the lease assets and lease liabilities, which is expected to be immaterial, will be recorded as an adjustment to retained earnings. The standard is not expected to materially affect the Company's consolidated net earnings or have any impact on cash flows. 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. In May 2018, the FASB issued ASU 2018-07, Compensation – Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement In August 2018, the FASB issued ASU 2018-14, Compensation-Retirement Benefits-Defined Benefit Plans-General (Subtopic 715-20): Disclosure Framework – Changes to the Disclosure Requirements for Defined Benefit Plans ("ASU 2018-14") In August 2018, the FASB issued ASU 2018-15, Intangibles – Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Cost |
ACQUISITION
ACQUISITION | 12 Months Ended |
Dec. 31, 2018 | |
ACQUISITION [Abstract] | |
ACQUISITION | 2. ACQUISITION On October 1, 2018, the Company completed the acquisition of BCMZ Precision Engineering Limited ("BCMZ"), a UK manufacturer of precision machined components, for approximately $2.6 million in cash. The transaction was funded with cash on hand. BCMZ has a diversified portfolio of customers in the automotive, aerospace, defense, telecommunication, fibre-optic and medical industrial sectors and has been a long-term key supplier of precision machined components for our Cinch Connectivity Solutions UK business. BCMZ is additionally expected to give Cinch the capability to continue to support key defense and industrial customers across Europe with localized in-house machining ability. The results of operations of BCMZ have been included in the Company's consolidated financial statements for the period subsequent to its acquisition date. During the year ended December 31, 2018, BCMZ contributed revenue of $0.5 million and an immaterial amount to operating income within the Company's consolidated financial results. During the year ended December 31, 2018, the Company incurred less than $0.1 million of acquisition-related costs relating to BCMZ. These costs are included in selling, general and administrative expense in the accompanying consolidated statement of operations for the year ended December 31, 2018. As of the acquisition date, balances recorded approximated fair value. The identifiable assets acquired included $0.4 million assigned to customer relationships which will be amortized over its estimated future life of 10 years utilizing the straight-line method. As of October 1, 2018 Acquisition Date Identifiable assets acquired $ 2,986 Liabilities assumed (1,688 ) Net identifiable assets acquired 1,298 Goodwill 1,290 Net assets acquired $ 2,588 Fair value of consideration transferred $ 2,588 The goodwill noted above related to the BCMZ acquisition will be allocated to the Company's Europe operating segment. The Company is uncertain at this time how much of the goodwill, if any, will be deductible for tax purposes. The inclusion of BCMZ's results, assuming the acquisition of BCMZ was completed as of January 1, 2017, would not have had a material impact on the Company's consolidated results of operations during 2017 or 2018. |
REVENUE
REVENUE | 12 Months Ended |
Dec. 31, 2018 | |
REVENUE [Abstract] | |
REVENUE | 3. REVENUE Nature of Goods and Services Our revenues are substantially derived from sales of our products. In our connectivity solutions product group, we provide 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 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: e.g., · Distributor: · Consignment: · Licensing Agreements: 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. 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: Year Ended December 31, 2018 North America Asia Europe Consolidated By Product Group: Connectivity solutions $ 135,454 $ 17,140 $ 34,130 $ 186,724 Magnetic solutions 37,805 137,998 9,604 185,407 Power solutions and protection 98,432 32,065 45,556 176,053 $ 271,691 $ 187,203 $ 89,290 $ 548,184 By Sales Channel: Direct to customer $ 175,290 $ 161,114 $ 62,255 $ 398,659 Through distribution 96,401 26,089 27,035 149,525 $ 271,691 $ 187,203 $ 89,290 $ 548,184 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 December 31, 2018 and consolidated statement of operations for the year ended December 31, 2018 was as follows: As of December 31, 2018 Balances Effect of As Without Adoption Change Reported of ASC 606 Higher/(Lower) Balance Sheet Assets Unbilled receivables $ 15,799 $ - $ 15,799 Inventories 120,068 131,885 (11,817 ) Liabilities Other current liabilities 15,061 15,041 20 Equity Retained earnings 168,695 164,734 3,961 Year Ended December 31, 2018 Balances Effect of As Without Adoption Change Reported of ASC 606 Higher/(Lower) Statement of Operations Net sales $ 548,184 $ 546,922 $ 1,262 Cost of sales 438,414 437,641 773 Operating income 29,611 29,122 489 Provision for income taxes 2,907 2,930 (23 ) Net earnings 20,709 20,197 512 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 December 31, 2018 and January 1, 2018 are as follows: December 31, January 1, 2018 2018 Contract assets - current (unbilled receivable) $ 15,799 $ 14,536 Contract liabilities - current (deferred revenue) $ 1,036 $ 855 The change in balance of our unbilled receivables from January 1, 2018 to December 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). A tabular presentation of the activity within the deferred revenue account for the year ended December 31, 2018 is presented below: Year Ended December 31, 2018 Balance, January 1 $ 855 New advance payments received 6,517 Recognized as revenue during period (6,322 ) Currency translation (14 ) Balance, December 31 $ 1,036 Transaction Price Allocated to Future Obligations The aggregate amount of transaction price allocated to remaining performance obligations that have not been satisfied as of December 31, 2018 related to contracts that exceed one year in duration amounted to $18.2 million, with expected contract expiration dates that range from 2020 - 2024. It is expected that 78% of this aggregate amount will be recognized in 2020, 20% will be recognized in 2021 and the remainder will be recognized in years beyond 2021. The majority of the Company's total backlog of orders at December 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 |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 and 2017 are as follows: Total North America Asia Europe Balance at January 1, 2017: Goodwill, gross $ 146,542 S 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 Goodwill allocation related to acquisition 1,290 - - 1,290 Foreign currency translation (1,650 ) - - (1,650 ) Balance at December 31, 2018: Goodwill, gross 148,408 63,364 54,508 30,536 Accumulated impairment charges (128,591 ) (54,474 ) (54,508 ) (19,609 ) Goodwill, net $ 19,817 $ 8,890 $ - $ 10,927 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. 2018 Annual Impairment Test During the fourth quarter of 2018, 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 2018 annual impairment test were as follows: Reporting Unit % by Which Estimated Fair Value Exceeds Carrying Value North America 20.3 % Europe 23.8 % As noted above, the fair value determined under step one of the goodwill impairment test completed in the fourth quarter of 2018 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. 2017 Annual Impairment Test Based on annual impairment tests performed in the prior year, there was no indication of goodwill impairment at the October 1, 2017 testing date. 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 1 to 16 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, 2018, 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, 2018 December 31, 2017 Gross Carrying Accumulated Net Carrying Gross Carrying Accumulated Net Carrying Amount Amortization Amount Amount Amortization Amount Patents, licenses and technology $ 38,845 $ 18,281 $ 20,564 $ 39,218 $ 14,926 $ 24,292 Customer relationships 44,588 14,193 30,395 44,704 11,478 33,226 Non-compete agreements 2,683 2,683 - 2,711 2,711 - Trademarks 11,770 40 11,730 11,888 40 11,848 $ 97,886 $ 35,197 $ 62,689 $ 98,521 $ 29,155 $ 69,366 Amortization expense was $6.4 million and $6.7 million in 2018 and 2017, respectively. Estimated amortization expense for intangible assets for the next five years is as follows: December 31, Amortization Expense 2019 $ 6,289 2020 6,263 2021 6,248 2022 4,877 2023 3,621 2018 Annual Impairment Test The Company completed its annual indefinite-lived intangible assets impairment test during the fourth quarter of 2018, noting no impairment. Management has concluded that the fair value of these trademarks exceeded the related carrying values at December 31, 2018 and that there was no indication of impairment. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2018 | |
FAIR VALUE MEASUREMENTS [Abstract] | |
FAIR VALUE MEASUREMENTS | 5. FAIR VALUE MEASUREMENTS As of 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, 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. The gross unrealized gains associated with the investments held in the rabbi trust were $0.2 million at December 31, 2017. Such unrealized gains are included, net of tax, in accumulated other comprehensive income. During 2018, the Company sold its securities and realized a gain on sale of $0.2 million. The proceeds of $1.3 million were reinvested in other securities within the rabbi trust. As of December 31, 2018 and 2017, our available-for-sale securities, which primarily consist of investments held in a rabbi trust of $1.4 million and $1.5 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 2018 or 2017. There were no changes to the Company's valuation techniques used to measure asset fair values on a recurring or nonrecurring basis during 2018. There were no financial assets accounted for at fair value on a nonrecurring basis as of December 31, 2018 or 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 December 31, 2018 and 2017, the estimated fair value of total debt was $117.9 million and $124.8 million, respectively, compared to a carrying amount of $114.2 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 December 31, 2018 and 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, 2018 | |
OTHER ASSETS [Abstract] | |
OTHER ASSETS | 6. OTHER ASSETS At December 31, 2018 and 2017, the Company has obligations of $18.7 million and $19.1 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, 2018 and 2017, these assets had a combined value of $13.0 million and $14.0 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 $11.6 million and $12.3 million at December 31, 2018 and 2017, respectively, is included in other assets in the accompanying consolidated balance sheets. 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 (expense) income to account for the (decrease) increase in cash surrender value in the amount of ($0.4) million and $1.3 million during the years ended December 31, 2018 and 2017, 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, 2018 and 2017. 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, 2018 and 2017, the Company held, in the aforementioned rabbi trust, available-for-sale investments at a cost of $1.4 million and $1.3 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. At December 31, 2018 and 2017, the fair market value of these investments was $1.4 million and $1.5 million, respectively. The gross unrealized gain of $0 and $0.2 million at December 31, 2018 and 2017, respectively, has been included, net of tax, in accumulated other comprehensive income (loss). |
INVENTORIES
INVENTORIES | 12 Months Ended |
Dec. 31, 2018 | |
INVENTORIES [Abstract] | |
INVENTORIES | 7. INVENTORIES The components of inventories are as follows: December 31, 2018 2017 Raw materials $ 63,348 $ 46,712 Work in progress 21,441 17,688 Finished goods 35,279 43,319 Inventories $ 120,068 $ 107,719 |
PROPERTY, PLANT AND EQUIPMENT,
PROPERTY, PLANT AND EQUIPMENT, NET | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 2017 Land $ 2,251 $ 2,259 Buildings and improvements 30,119 30,761 Machinery and equipment 126,747 122,773 Construction in progress 4,687 1,511 163,804 157,304 Accumulated depreciation (119,872 ) (113,809 ) Property, plant and equipment, net $ 43,932 $ 43,495 Depreciation expense for the years ended December 31, 2018 and 2017 was $11.8 million and $14.0 million, respectively. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 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 2015 and for state examinations before 2012. Regarding foreign subsidiaries, the Company is no longer subject to examination by tax authorities for years before 2008 in Asia and generally 2010 in Europe. At December 31, 2018 and 2017, the Company has approximately $28.9 million and $30.4 million, respectively, of liabilities for uncertain tax positions ($1.4 million and $2.5 million, respectively, is included in other current liabilities on the consolidated balance sheets and $27.5 million and $27.9 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, 2018, approximately $1.1 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, 2018. A total of $1.1 million of the liability for uncertain tax positions, of which $1.0 million related to the 2008 tax year is scheduled to expire on June 1, 2019. The remaining $0.1 million relates to the 2015 tax year and is scheduled to expire on September 15, 2019. A total of $2.5 million of the liability for uncertain tax positions December 31, 2018, of which $1.1 million related to the 2006 tax year and . 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 : Year Ended December 31, 2018 2017 Liability for uncertain tax positions - January 1 $ 30,430 $ 27,828 Additions based on tax positions related to the current year 1,703 2,168 Additions relating to acquisitions - - Translation adjustment (657 ) 804 Settlement/expiration of statutes of limitations (2,525 ) (370 ) Liability for uncertain tax positions - December 31 $ 28,951 $ 30,430 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, 2018 and 2017, the Company recognized $1.3 million and $0.9 million, respectively, in interest and penalties in the consolidated statements of operations. During the years ended December 31, 2018 and 2017, the Company recognized a benefit of $0.3 million and zero, respectively, for the reversal of such interest and penalties, relating to the expiration of statues of limitations and settlement of a liability for uncertain tax positions, respectively. The Company has approximately $3.8 million and $3.2 million accrued for the payment of interest and penalties at December 31, 2018 and 2017, respectively, which is included in both income taxes payable and liability for uncertain tax positions in the consolidated balance sheets. The Company's total earnings (loss) before provision (benefit) for income taxes included earnings (loss) from domestic operations of $0.3 million and ($2.0) million for 2018 and 2017, respectively, and earnings (loss) before provision (benefit) for income taxes from foreign operations of $23.3 million and $11.7 million for 2018 and 2017, respectively. The provision (benefit) for income taxes consists of the following: Years Ended December 31, 2018 2017 Current: Federal $ (3,517 ) $ 16,055 State 152 115 Foreign 3,782 5,685 417 21,855 Deferred: Federal 2,895 (1,312 ) State 196 (329 ) Foreign (601 ) 1,326 2,490 (315 ) $ 2,907 $ 21,540 A reconciliation of taxes on income computed at the U.S. federal statutory rate to amounts provided is as follows: Years Ended December 31, 2018 2017 $ % $ % Tax provision computed at the federal statutory rate $ 4,959 21 % $ 3,375 35 % Increase (decrease) in taxes resulting from: Different tax rates applicable to foreign operations 1,231 5 % (2,531 ) (26 %) (Reversal of) increase in liability for uncertain tax positions - net (822 ) (3 %) 1,082 11 % Impact of U.S. Tax Reform (2,628 ) (11 %) 19,171 199 % Utilization of research and experimentation, solar and foreign tax credits (300 ) (1 %) (272 ) (3 %) State taxes, net of federal benefit 322 1 % (261 ) (3 %) Foreign tax on gain, net of federal benefit - 0 % 1,223 13 % Other, including qualified production activity credits, SERP/COLI income, under/(over) accruals, unrealized foreign exchange gains and amortization of purchase accounting intangibles 145 1 % (247 ) (3 %) Tax provision computed at the Company's effective tax rate $ 2,907 12 % $ 21,540 223 % 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%. On September 21, 2018, the Executive Council of the Macao SAR Government proposed to abolish the existing Offshore Law. It is proposed that the existing law and the relevant regulations related to the offshore business will be abolished, and that the operating permit to carry on offshore business will be terminated on January 1, 2021. The Company is currently looking at other options for the Company's operations. 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, 2018, the Company has gross foreign income tax net operating losses ("NOL") of $35.6 million, foreign tax credits of $0.3 million and capital loss carryforwards of $0.2 million which amount to a total of $8.2 million of deferred tax assets. The Company has established valuation allowances totaling $8.2 million against these deferred tax assets. In addition, the Company has gross federal and state income tax NOLs of $2.1 million, including $1.8 million of NOLs acquired from Array, which amount to $0.4 million of deferred tax assets and tax credit carryforwards of $1.5 million. The Company has established valuation allowances of $1.0 million 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 state NOL's expire at various times during – 2032 and the tax credit carryforwards expire at various times during 2025 - 2034. The Company's intention is to repatriate certain amounts of cash from its China operations, which include its wholly owned PRC subsidiary, Dongguan Transpower Electric Products Co., Ltd, a Chinese Limited Liability Company, to the U.S. Applicable income and dividend withholding taxes of $0.4 million have been reflected in the accompanying consolidated statements of operations for the year ended December 31, 2018. During the fourth quarter of 2018, the Company completed the analysis of the impacts of the U.S. tax reform and recognized the tax consequences of all unremitted foreign earnings. At December 31, 2017, 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. On the basis of revised earnings and profit computations that were completed during the year ended December 31, 2018, the Company recognized a measurement-period adjustment reducing the deemed repatriation tax by $2.6 million, resulting in the reduction of the Company's provisional estimate from $18.1 million to $15.5 million. After payments made during 2018, the remaining deemed repatriation taxes payable of $10.8 million is included in other current liabilities Except for the distribution noted above, management's intention is to permanently reinvest the remaining unremitted earnings of our foreign subsidiaries as of December 31, 2018. Due to the practicality of determining the deferred taxes on outside basis differences in our investments in our foreign subsidiaries, we have not provided for deferred taxes on outside basis differences and determined that these basis differences will be indefinitely reinvested. Components of deferred income tax assets are as follows: December 31, 2018 2017 Tax Effect Tax Effect Deferred tax assets: State tax credits $ 1,000 $ 1,033 Unfunded pension liability 605 1,139 Reserves and accruals 2,483 2,828 Federal, state and foreign net operating loss and credit carryforwards 8,370 10,524 Depreciation 850 917 Other accruals 5,641 4,915 Total deferred tax assets 18,949 21,356 Deferred tax liabilities: Depreciation 1,666 989 Amortization 7,930 8,490 Other accruals 893 946 Total deferred tax liabilities 10,489 10,425 Valuation allowance 9,200 8,343 Net deferred tax (liabilities)/assets $ (740 ) $ 2,588 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, 2018 | |
DEBT [Abstract] | |
DEBT | 10. DEBT At December 31, 2018 and 2017, borrowings outstanding related to the respective term loans described below were $116.0 million and $125.0 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 each of December 31, 2018 and December 31, 2017. At December 31, 2018 and 2017, the carrying value of the debt on the consolidated balance sheets is reflected net of $1.8 million and $2.3 million, respectively, of deferred financing costs. The interest rate in effect at December 31, 2018 was 4.31%, which consisted of LIBOR of 2.56% plus the Company's margin of 1.75%. 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%. In connection with its outstanding borrowings and amortization of the deferred financing costs described below, the Company incurred $5.3 million and $6.8 million of interest expense during the years ended December 31, 2018 and 2017, 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 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 "2017 CSA"). Concurrent with its entry into the 2017 CSA, the Company's outstanding balances due under the DDTL and Revolver were paid in full. In connection with 2017 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 2017 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 2017 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 2017 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 2017 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, 2018, the Company was in compliance with its debt covenants, including its most restrictive covenant, the Fixed Charge Coverage Ratio. Scheduled principal payments of the total debt outstanding at December 31, 2018 are as follows (in thousands): 2019 $ 2,974 2020 5,948 2021 5,948 2022 101,118 Total long-term debt 115,988 Less: Current maturities of long-term debt (2,974 ) Noncurrent portion of long-term debt $ 113,014 |
ACCRUED EXPENSES
ACCRUED EXPENSES | 12 Months Ended |
Dec. 31, 2018 | |
ACCRUED EXPENSES [Abstract] | |
ACCRUED EXPENSES | 11. ACCRUED EXPENSES Accrued expenses consist of the following: December 31, 2018 2017 Sales commissions $ 2,609 $ 2,461 Subcontracting labor 1,550 1,408 Salaries, bonuses and related benefits 18,275 16,531 Warranty accrual 1,078 1,769 Other 8,778 8,339 $ 32,290 $ 30,508 The change in warranty accrual during 2018 primarily related to repair costs incurred and adjustments to pre-existing warranties. There were no new material warranty charges incurred during 2018. |
SEGMENTS
SEGMENTS | 12 Months Ended |
Dec. 31, 2018 | |
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: Years Ended December 31, 2018 2017 Net Sales to External Customers: North America $ 271,691 $ 245,834 Asia 187,203 167,680 Europe 89,290 78,097 $ 548,184 $ 491,611 Net Sales: North America $ 284,245 $ 257,541 Asia 279,965 249,506 Europe 103,853 89,765 Less intercompany net sales (119,879 ) (105,201 ) $ 548,184 $ 491,611 Income from Operations: North America $ 6,769 $ 6,195 Asia 16,621 8,964 Europe 6,221 2,227 $ 29,611 $ 17,386 Total Assets: North America $ 177,902 $ 172,674 Asia 175,713 152,447 Europe 89,909 106,144 $ 443,524 $ 431,265 Capital Expenditures: North America $ 4,836 $ 1,734 Asia 5,661 2,617 Europe 1,097 2,074 $ 11,594 $ 6,425 Depreciation and Amortization Expense: North America $ 8,906 $ 10,641 Asia 5,842 6,728 Europe 3,459 3,349 $ 18,207 $ 20,718 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: 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. Years Ended December 31, 2018 2017 Net Sales by Geographic Location: United States $ 271,691 $ 245,834 Macao 187,204 167,681 United Kingdom 26,340 24,110 Slovakia 24,123 14,194 Germany 15,298 13,857 Switzerland 13,279 15,366 All other foreign countries 10,249 10,569 Consolidated net sales $ 548,184 $ 491,611 Net Sales by Major Product Line: Connectivity solutions $ 186,724 $ 170,337 Magnetic solutions 185,407 161,011 Power solutions and protection 176,053 160,263 Consolidated net sales $ 548,184 $ 491,611 The following is a summary of long-lived assets by geographic area as of December 31, 2018 and 2017: December 31, 2018 2017 Long-lived Assets by Geographic Location: United States $ 27,505 $ 27,594 People's Republic of China (PRC) 29,563 30,151 Slovakia 6,475 7,625 Switzerland 3,023 3,632 United Kingdom 2,330 1,345 All other foreign countries 1,117 1,121 Consolidated long-lived assets $ 70,013 $ 71,468 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 41.3% 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 2018 and 2017. The net sales associated with this customer was $67.7 million in 2018 (12.3% of sales) and $57.7 million in 2017 (11.7% of sales). Net sales related to this significant customer were primarily reflected in the Asia operating segment during each of the two years discussed. |
RETIREMENT FUND AND PROFIT SHAR
RETIREMENT FUND AND PROFIT SHARING PLAN | 12 Months Ended |
Dec. 31, 2018 | |
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. The Company's matching contribution is made in the form of Bel Fuse Inc. Class A common stock. 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, 2018 and 2017 amounted to $1.3 million and $1.2 million, respectively. As of December 31, 2018, the plan owned 114,839 and 127,733 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, 2018 and 2017 amounted to approximately $0.3 million in each year. As of December 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. . 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, 2018 and 2017 amounted to $1.8 million and $1.7 million, respectively. Net Periodic Benefit Cost The net periodic benefit cost related to the SERP consisted of the following components during the years ended December 31, 2018 and 2017: Years Ended December 31, 2018 2017 Service Cost $ 732 $ 700 Interest Cost 664 673 Net amortization 443 375 Net periodic benefit cost $ 1,839 $ 1,748 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. Obligations and Funded Status Summarized information about the changes in plan assets and benefit obligation, the funded status and the amounts recorded at December 31, 2018 and 2017 are as follows: Years Ended December 31, 2018 2017 Fair value of plan assets, January 1 $ - $ - Company contributions 325 240 Benefits paid (325 ) (240 ) Fair value of plan assets, December 31 $ - $ - Benefit obligation, January 1 $ 19,134 $ 16,900 Service cost 732 700 Interest cost 664 673 Benefits paid (325 ) (240 ) Plan amendments 39 198 Actuarial (gains) losses (1,568 ) 903 Benefit obligation, December 31 18,676 19,134 Underfunded status, December 31 $ (18,676 ) $ (19,134 ) The Company has recorded the 2018 and 2017 underfunded status as a long-term liability on the consolidated balance sheets. The accumulated benefit obligation for the SERP was $16.5 million as of December 31, 2018 and $16.1 million as of December 31, 2017. The estimated net loss and prior service cost for the SERP that will be amortized from accumulated other comprehensive loss into net periodic benefit cost over the next fiscal year is $0.2 million. The Company expects to make contributions of $0.3 million to the SERP in 2019. 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 2019, as the plan has no assets. The following benefit payments, which reflect expected future service, are expected to be paid: Years Ending December 31, 2019 $ 379 2020 659 2021 679 2022 902 2023 941 2024 - 2028 5,409 The following gross amounts are recognized net of tax in accumulated other comprehensive loss: December 31, 2018 2017 Prior service cost $ 918 $ 1,135 Net loss 1,977 3,732 $ 2,895 $ 4,867 Actuarial Assumptions The weighted average assumptions used in determining the periodic net cost and benefit obligation information related to the SERP are as follows: Years Ended December 31, 2018 2017 Net periodic benefit cost Discount rate 3.50 % 4.00 % Rate of compensation increase 3.00 % 3.00 % Benefit obligation Discount rate 4.00 % 3.50 % Rate of compensation increase 2.50 % 3.00 % |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018, 359,100 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 $2.8 million and $3.0 million for 2018 and 2017, 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 2018 and 2017, the Company issued 262,000 shares and 46,400 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 for the year ended December 31, 2018 is presented below: Weighted Average Restricted Stock Weighted Average Remaining Awards Shares Award Price Contractual Term Outstanding at January 1, 2018 424,500 $ 23.23 3.0 years Granted 262,000 24.68 Vested (129,600 ) 21.88 Forfeited (29,000 ) 21.69 Outstanding at December 31, 2018 527,900 $ 24.37 3.5 years As of December 31, 2018, there was $8.7 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 3.8 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, 2018 | |
COMMON STOCK [Abstract] | |
COMMON STOCK | 15. COMMON STOCK As of December 31, 2018, 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, 2018, 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, 2018, to the Company's knowledge, this shareholder owned 23.6% 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 2018 and 2017, 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 each of 2018 and 2017. 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, 2018 | |
COMMITMENTS AND CONTINGENCIES [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 16. COMMITMENTS AND CONTINGENCIES Leases The Company leases various facilities under operating leases expiring 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, 2019 $ 7,363 2020 6,017 2021 4,967 2022 3,338 2023 1,194 Thereafter 442 $ 23,321 Rental expense for all leases was approximately $8.0 million and $8.2 million for the years ended December 31, 2018 and 2017, 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 $58.9 million and $45.4 million at December 31, 2018 and December 31, 2017, respectively. The Company also had outstanding purchase orders related to capital expenditures in the amount of $5.2 million and $3.0 million at December 31, 2018 and December 31, 2017, 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 December 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 the Regional Court of 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 final judgment in the infringement case pending resolution of the nullity lawsuit in the Federal Patents Courts in Munich, Germany. The Federal Patents Courts issued its preliminary opinion regarding the patent-in-suit on March 29, 2018, stating that it considers the patent-in-suit to not be novel over the prior art documents presented in the case. The parties agreed to withdraw from the pending infringement and nullity proceedings and entered into a settlement agreement on June 29, 2018. The Company paid Setec 75,000 Euro in exchange for a perpetual, worldwide royalty-free license to the patent-in-suit and all its counterparts. 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 People Court of Dongguan ruled and provided an unfavorable judgment against Dongguan Transpower and two of the other defendants requiring payment of the aforementioned amount. The defendants were held to be jointly and severally liable for approximately $3.2 million in costs. Due to the fact that none of the other defendants had sufficient funds to pay the damages amount, the Court ordered the entire amount (CNY 20,133,174) to be paid by Dongguan Transpower. On May 25, 2018, the Court enforced its order and withdrew the damages amount from Dongguan Transpower's bank accounts. On May 31, 2018, Dongguan Transpower filed an action against the other defendants in CP Court to recoup the damages amount paid pursuant to an indemnification letter dated October 16, 2015. The Court heard arguments on July 2, 2018 and rendered a verdict on July 9, 2018 ordering the Jinmei entities (defendants) to pay CNY 20,133,174 back to Dongguan Transpower together with the incurred interest. On August 27, 2018, Dongguan Transpower received payment of CNY 20,430,203 (approximately $3.2 million) from the defendants and this case was closed. On June 1, 2018, the Company filed an action against Unipower, LLC in the United States District Court for the Southern District of New York for breach of contract. Specifically, the Company alleges in its Complaint that Unipower has willfully violated the Master Services Agreement ("MSA") entered into by the parties on January 23, 2015 by failing to make payment for the products it contracted for under the MSA. The parties entered into a settlement agreement on December 17, 2018 resolving all outstanding claims and a Stipulation of Dismissal was filed and entered on January 10, 2019. 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, 2018 | |
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, 2018 and 2017 are summarized below: December 31, 2018 2017 Foreign currency translation adjustment $ (22,635 ) $ (16,537 ) Unrealized holding gain on available-for-sale securities, net of taxes of $0 and $85 as of December 31, 2018 and 2017 12 145 Unfunded SERP liability, net of taxes of ($680) and ($1,635) as of December 31, 2018 and 2017 (2,215 ) (3,233 ) Accumulated other comprehensive loss $ (24,838 ) $ (19,625 ) Changes in accumulated other comprehensive (loss) income by component during the years ended December 31, 2018 and 2017 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, 2017 $ (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 ) Other comprehensive income (loss) before reclassifications (6,098 ) 37 679 (5,382 ) Amounts reclassified from accumulated other comprehensive income (loss) - (170 ) 339 (a) 169 Net current period other comprehensive income (loss) (6,098 ) (133 ) 1,018 (5,213 ) Balance at December 31, 2018 $ (22,635 ) $ 12 $ (2,215 ) $ (24,838 ) (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, 2018 | |
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 did not purchase any inventory from the joint venture during 2017. During the fourth quarter of 2017, the Company divested its 49% interest in the joint venture in exchange for an extinguishment of an 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. |
DESCRIPTION OF BUSINESS AND S_2
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
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 gains (losses) of $2.7 million and ($2.8) million for the years ended December 31, 2018 and 2017, 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 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. |
Product Warranties | Product Warranties – |
Product Returns | Product Returns |
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 1 to 16 years, on a straight-line basis to their estimated residual values and periodically review them for impairment. Total identifiable intangible assets comprise 14.1% and 16.1% in 2018 and 2017, 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: Years Ended December 31, 2018 2017 Numerator: Net earnings (loss) $ 20,709 $ (11,897 ) Less dividends declared: Class A 522 522 Class B 2,796 2,757 Undistributed earnings (loss) $ 17,391 $ (15,176 ) Undistributed earnings (loss) allocation - basic and diluted: Class A undistributed earnings (loss) $ 2,999 $ (2,635 ) Class B undistributed earnings (loss) 14,392 (12,541 ) Total undistributed earnings (loss) $ 17,391 $ (15,176 ) Net earnings (loss) allocation - basic and diluted: Class A net earnings (loss) $ 3,521 $ (2,113 ) Class B net earnings (loss) 17,188 (9,784 ) Net earnings (loss) $ 20,709 $ (11,897 ) Denominator: Weighted average shares outstanding: Class A - basic and diluted 2,175 2,175 Class B - basic and diluted 9,939 9,857 Net earnings (loss) per share: Class A - basic and diluted $ 1.62 $ (0.97 ) Class B - basic and diluted $ 1.73 $ (0.99 ) |
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 and accrued expenses, 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 Adopted Accounting Standards | Recently Issued 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 3, the adoption of the new revenue standards did not have a material impact on the Company's 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 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 . Prior U.S. GAAP prohibited 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 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") 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 prior GAAP, excess tax benefits were recognized in additional paid-in capital while tax deficiencies were 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 Accounting Standards Issued But Not Yet Adopted In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) ("ASU 2016-02") The Company will adopt ASU 2016-02 effective January 1, 2019 using the modified retrospective approach. In connection with the adoption, we will elect to utilize the Comparatives Under 840 Option whereby the Company will continue to present prior period financial statements and disclosures under ASC 840. In addition, we will elect the transition package of three practical expedients permitted within the standard, which eliminates the requirements to reassess prior conclusions about lease identification, lease classification and initial direct costs. Further, we will elect a short-term lease exception policy, permitting us to not apply the recognition requirements of this standard to short-term leases (i.e. leases with terms of 12 months or less) and an accounting policy to account for lease and non-lease components as a single component for certain classes of assets. We are finalizing the necessary changes to our accounting policies, processes, disclosures and internal control over financial reporting, and have implemented a new lease system to facilitate the requirements of the new standard. Adoption of the new standard is expected to result in the recording of right-of-use assets and lease liabilities related to our operating leases, each in an amount ranging from $18-$22 million, on our consolidated balance sheet as of January 1, 2019. The difference between the lease assets and lease liabilities, which is expected to be immaterial, will be recorded as an adjustment to retained earnings. The standard is not expected to materially affect the Company's consolidated net earnings or have any impact on cash flows. 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. In May 2018, the FASB issued ASU 2018-07, Compensation – Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement In August 2018, the FASB issued ASU 2018-14, Compensation-Retirement Benefits-Defined Benefit Plans-General (Subtopic 715-20): Disclosure Framework – Changes to the Disclosure Requirements for Defined Benefit Plans ("ASU 2018-14") In August 2018, the FASB issued ASU 2018-15, Intangibles – Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Cost |
DESCRIPTION OF BUSINESS AND S_3
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
Earnings and Weighted Average Shares Outstanding used in Computation of Basic and Diluted Earnings Per Share | The earnings and weighted average shares outstanding used in the computation of basic and diluted earnings per share are as follows: Years Ended December 31, 2018 2017 Numerator: Net earnings (loss) $ 20,709 $ (11,897 ) Less dividends declared: Class A 522 522 Class B 2,796 2,757 Undistributed earnings (loss) $ 17,391 $ (15,176 ) Undistributed earnings (loss) allocation - basic and diluted: Class A undistributed earnings (loss) $ 2,999 $ (2,635 ) Class B undistributed earnings (loss) 14,392 (12,541 ) Total undistributed earnings (loss) $ 17,391 $ (15,176 ) Net earnings (loss) allocation - basic and diluted: Class A net earnings (loss) $ 3,521 $ (2,113 ) Class B net earnings (loss) 17,188 (9,784 ) Net earnings (loss) $ 20,709 $ (11,897 ) Denominator: Weighted average shares outstanding: Class A - basic and diluted 2,175 2,175 Class B - basic and diluted 9,939 9,857 Net earnings (loss) per share: Class A - basic and diluted $ 1.62 $ (0.97 ) Class B - basic and diluted $ 1.73 $ (0.99 ) |
ACQUISITION (Tables)
ACQUISITION (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
ACQUISITION [Abstract] | |
Fair Values of Consideration Transferred and Identifiable Net Assets Acquired | As of October 1, 2018 Acquisition Date Identifiable assets acquired $ 2,986 Liabilities assumed (1,688 ) Net identifiable assets acquired 1,298 Goodwill 1,290 Net assets acquired $ 2,588 Fair value of consideration transferred $ 2,588 |
REVENUE (Tables)
REVENUE (Tables) | 12 Months Ended |
Dec. 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: Year Ended December 31, 2018 North America Asia Europe Consolidated By Product Group: Connectivity solutions $ 135,454 $ 17,140 $ 34,130 $ 186,724 Magnetic solutions 37,805 137,998 9,604 185,407 Power solutions and protection 98,432 32,065 45,556 176,053 $ 271,691 $ 187,203 $ 89,290 $ 548,184 By Sales Channel: Direct to customer $ 175,290 $ 161,114 $ 62,255 $ 398,659 Through distribution 96,401 26,089 27,035 149,525 $ 271,691 $ 187,203 $ 89,290 $ 548,184 |
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 December 31, 2018 and consolidated statement of operations for the year ended December 31, 2018 was as follows: As of December 31, 2018 Balances Effect of As Without Adoption Change Reported of ASC 606 Higher/(Lower) Balance Sheet Assets Unbilled receivables $ 15,799 $ - $ 15,799 Inventories 120,068 131,885 (11,817 ) Liabilities Other current liabilities 15,061 15,041 20 Equity Retained earnings 168,695 164,734 3,961 Year Ended December 31, 2018 Balances Effect of As Without Adoption Change Reported of ASC 606 Higher/(Lower) Statement of Operations Net sales $ 548,184 $ 546,922 $ 1,262 Cost of sales 438,414 437,641 773 Operating income 29,611 29,122 489 Provision for income taxes 2,907 2,930 (23 ) Net earnings 20,709 20,197 512 |
Contract Assets and Contract Liabilities | The balances of the Company's contract assets and contract liabilities at December 31, 2018 and January 1, 2018 are as follows: December 31, January 1, 2018 2018 Contract assets - current (unbilled receivable) $ 15,799 $ 14,536 Contract liabilities - current (deferred revenue) $ 1,036 $ 855 |
Deferred Revenue | A tabular presentation of the activity within the deferred revenue account for the year ended December 31, 2018 is presented below: Year Ended December 31, 2018 Balance, January 1 $ 855 New advance payments received 6,517 Recognized as revenue during period (6,322 ) Currency translation (14 ) Balance, December 31 $ 1,036 |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 and 2017 are as follows: Total North America Asia Europe Balance at January 1, 2017: Goodwill, gross $ 146,542 S 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 Goodwill allocation related to acquisition 1,290 - - 1,290 Foreign currency translation (1,650 ) - - (1,650 ) Balance at December 31, 2018: Goodwill, gross 148,408 63,364 54,508 30,536 Accumulated impairment charges (128,591 ) (54,474 ) (54,508 ) (19,609 ) Goodwill, net $ 19,817 $ 8,890 $ - $ 10,927 |
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 2018 annual impairment test were as follows: Reporting Unit % by Which Estimated Fair Value Exceeds Carrying Value North America 20.3 % Europe 23.8 % |
Components of Definite and Indefinite-Lived Intangible Assets | The components of definite and indefinite-lived intangible assets are as follows: December 31, 2018 December 31, 2017 Gross Carrying Accumulated Net Carrying Gross Carrying Accumulated Net Carrying Amount Amortization Amount Amount Amortization Amount Patents, licenses and technology $ 38,845 $ 18,281 $ 20,564 $ 39,218 $ 14,926 $ 24,292 Customer relationships 44,588 14,193 30,395 44,704 11,478 33,226 Non-compete agreements 2,683 2,683 - 2,711 2,711 - Trademarks 11,770 40 11,730 11,888 40 11,848 $ 97,886 $ 35,197 $ 62,689 $ 98,521 $ 29,155 $ 69,366 |
Estimated Amortization Expense for Intangible Assets | Estimated amortization expense for intangible assets for the next five years is as follows: December 31, Amortization Expense 2019 $ 6,289 2020 6,263 2021 6,248 2022 4,877 2023 3,621 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
INVENTORIES [Abstract] | |
Components of Inventories | The components of inventories are as follows: December 31, 2018 2017 Raw materials $ 63,348 $ 46,712 Work in progress 21,441 17,688 Finished goods 35,279 43,319 Inventories $ 120,068 $ 107,719 |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
PROPERTY, PLANT AND EQUIPMENT, NET [Abstract] | |
Property, Plant and Equipment | Property, plant and equipment, net consist of the following: December 31, 2018 2017 Land $ 2,251 $ 2,259 Buildings and improvements 30,119 30,761 Machinery and equipment 126,747 122,773 Construction in progress 4,687 1,511 163,804 157,304 Accumulated depreciation (119,872 ) (113,809 ) Property, plant and equipment, net $ 43,932 $ 43,495 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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 : Year Ended December 31, 2018 2017 Liability for uncertain tax positions - January 1 $ 30,430 $ 27,828 Additions based on tax positions related to the current year 1,703 2,168 Additions relating to acquisitions - - Translation adjustment (657 ) 804 Settlement/expiration of statutes of limitations (2,525 ) (370 ) Liability for uncertain tax positions - December 31 $ 28,951 $ 30,430 |
Provision (Benefit) for Income Taxes | The provision (benefit) for income taxes consists of the following: Years Ended December 31, 2018 2017 Current: Federal $ (3,517 ) $ 16,055 State 152 115 Foreign 3,782 5,685 417 21,855 Deferred: Federal 2,895 (1,312 ) State 196 (329 ) Foreign (601 ) 1,326 2,490 (315 ) $ 2,907 $ 21,540 |
Reconciliation of Taxes on Income Computed at 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, 2018 2017 $ % $ % Tax provision computed at the federal statutory rate $ 4,959 21 % $ 3,375 35 % Increase (decrease) in taxes resulting from: Different tax rates applicable to foreign operations 1,231 5 % (2,531 ) (26 %) (Reversal of) increase in liability for uncertain tax positions - net (822 ) (3 %) 1,082 11 % Impact of U.S. Tax Reform (2,628 ) (11 %) 19,171 199 % Utilization of research and experimentation, solar and foreign tax credits (300 ) (1 %) (272 ) (3 %) State taxes, net of federal benefit 322 1 % (261 ) (3 %) Foreign tax on gain, net of federal benefit - 0 % 1,223 13 % Other, including qualified production activity credits, SERP/COLI income, under/(over) accruals, unrealized foreign exchange gains and amortization of purchase accounting intangibles 145 1 % (247 ) (3 %) Tax provision computed at the Company's effective tax rate $ 2,907 12 % $ 21,540 223 % |
Deferred Income Tax Assets | Components of deferred income tax assets are as follows: December 31, 2018 2017 Tax Effect Tax Effect Deferred tax assets: State tax credits $ 1,000 $ 1,033 Unfunded pension liability 605 1,139 Reserves and accruals 2,483 2,828 Federal, state and foreign net operating loss and credit carryforwards 8,370 10,524 Depreciation 850 917 Other accruals 5,641 4,915 Total deferred tax assets 18,949 21,356 Deferred tax liabilities: Depreciation 1,666 989 Amortization 7,930 8,490 Other accruals 893 946 Total deferred tax liabilities 10,489 10,425 Valuation allowance 9,200 8,343 Net deferred tax (liabilities)/assets $ (740 ) $ 2,588 |
DEBT (Tables)
DEBT (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
DEBT [Abstract] | |
Principal Payments of Total Debt Outstanding | Scheduled principal payments of the total debt outstanding at December 31, 2018 are as follows (in thousands): 2019 $ 2,974 2020 5,948 2021 5,948 2022 101,118 Total long-term debt 115,988 Less: Current maturities of long-term debt (2,974 ) Noncurrent portion of long-term debt $ 113,014 |
ACCRUED EXPENSES (Tables)
ACCRUED EXPENSES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
ACCRUED EXPENSES [Abstract] | |
Accrued Expenses | Accrued expenses consist of the following: December 31, 2018 2017 Sales commissions $ 2,609 $ 2,461 Subcontracting labor 1,550 1,408 Salaries, bonuses and related benefits 18,275 16,531 Warranty accrual 1,078 1,769 Other 8,778 8,339 $ 32,290 $ 30,508 |
SEGMENTS (Tables)
SEGMENTS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
SEGMENTS [Abstract] | |
Key Financial Data | The following is a summary of key financial data: Years Ended December 31, 2018 2017 Net Sales to External Customers: North America $ 271,691 $ 245,834 Asia 187,203 167,680 Europe 89,290 78,097 $ 548,184 $ 491,611 Net Sales: North America $ 284,245 $ 257,541 Asia 279,965 249,506 Europe 103,853 89,765 Less intercompany net sales (119,879 ) (105,201 ) $ 548,184 $ 491,611 Income from Operations: North America $ 6,769 $ 6,195 Asia 16,621 8,964 Europe 6,221 2,227 $ 29,611 $ 17,386 Total Assets: North America $ 177,902 $ 172,674 Asia 175,713 152,447 Europe 89,909 106,144 $ 443,524 $ 431,265 Capital Expenditures: North America $ 4,836 $ 1,734 Asia 5,661 2,617 Europe 1,097 2,074 $ 11,594 $ 6,425 Depreciation and Amortization Expense: North America $ 8,906 $ 10,641 Asia 5,842 6,728 Europe 3,459 3,349 $ 18,207 $ 20,718 |
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. Years Ended December 31, 2018 2017 Net Sales by Geographic Location: United States $ 271,691 $ 245,834 Macao 187,204 167,681 United Kingdom 26,340 24,110 Slovakia 24,123 14,194 Germany 15,298 13,857 Switzerland 13,279 15,366 All other foreign countries 10,249 10,569 Consolidated net sales $ 548,184 $ 491,611 Net Sales by Major Product Line: Connectivity solutions $ 186,724 $ 170,337 Magnetic solutions 185,407 161,011 Power solutions and protection 176,053 160,263 Consolidated net sales $ 548,184 $ 491,611 |
Long-Lived Assets by Geographic Area | The following is a summary of long-lived assets by geographic area as of December 31, 2018 and 2017: December 31, 2018 2017 Long-lived Assets by Geographic Location: United States $ 27,505 $ 27,594 People's Republic of China (PRC) 29,563 30,151 Slovakia 6,475 7,625 Switzerland 3,023 3,632 United Kingdom 2,330 1,345 All other foreign countries 1,117 1,121 Consolidated long-lived assets $ 70,013 $ 71,468 |
RETIREMENT FUND AND PROFIT SH_2
RETIREMENT FUND AND PROFIT SHARING PLAN (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
RETIREMENT FUND AND PROFIT SHARING PLAN [Abstract] | |
SERP Expense | The net periodic benefit cost related to the SERP consisted of the following components during the years ended December 31, 2018 and 2017: Years Ended December 31, 2018 2017 Service Cost $ 732 $ 700 Interest Cost 664 673 Net amortization 443 375 Net periodic benefit cost $ 1,839 $ 1,748 |
Changes in Plan Assets and Benefit Obligation, Funded Status | Summarized information about the changes in plan assets and benefit obligation, the funded status and the amounts recorded at December 31, 2018 and 2017 are as follows: Years Ended December 31, 2018 2017 Fair value of plan assets, January 1 $ - $ - Company contributions 325 240 Benefits paid (325 ) (240 ) Fair value of plan assets, December 31 $ - $ - Benefit obligation, January 1 $ 19,134 $ 16,900 Service cost 732 700 Interest cost 664 673 Benefits paid (325 ) (240 ) Plan amendments 39 198 Actuarial (gains) losses (1,568 ) 903 Benefit obligation, December 31 18,676 19,134 Underfunded status, December 31 $ (18,676 ) $ (19,134 ) |
Expected Benefit Payments | The following benefit payments, which reflect expected future service, are expected to be paid: Years Ending December 31, 2019 $ 379 2020 659 2021 679 2022 902 2023 941 2024 - 2028 5,409 |
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: December 31, 2018 2017 Prior service cost $ 918 $ 1,135 Net loss 1,977 3,732 $ 2,895 $ 4,867 |
Weighted Average Assumptions Used in Determining 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: Years Ended December 31, 2018 2017 Net periodic benefit cost Discount rate 3.50 % 4.00 % Rate of compensation increase 3.00 % 3.00 % Benefit obligation Discount rate 4.00 % 3.50 % Rate of compensation increase 2.50 % 3.00 % |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
SHARE-BASED COMPENSATION [Abstract] | |
Restricted Stock Activity | A summary of the restricted stock activity under the Program for the year ended December 31, 2018 is presented below: Weighted Average Restricted Stock Weighted Average Remaining Awards Shares Award Price Contractual Term Outstanding at January 1, 2018 424,500 $ 23.23 3.0 years Granted 262,000 24.68 Vested (129,600 ) 21.88 Forfeited (29,000 ) 21.69 Outstanding at December 31, 2018 527,900 $ 24.37 3.5 years |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2019 $ 7,363 2020 6,017 2021 4,967 2022 3,338 2023 1,194 Thereafter 442 $ 23,321 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
ACCUMULATED OTHER COMPREHENSIVE LOSS [Abstract] | |
Accumulated Other Comprehensive Loss | The components of accumulated other comprehensive loss as of December 31, 2018 and 2017 are summarized below: December 31, 2018 2017 Foreign currency translation adjustment $ (22,635 ) $ (16,537 ) Unrealized holding gain on available-for-sale securities, net of taxes of $0 and $85 as of December 31, 2018 and 2017 12 145 Unfunded SERP liability, net of taxes of ($680) and ($1,635) as of December 31, 2018 and 2017 (2,215 ) (3,233 ) Accumulated other comprehensive loss $ (24,838 ) $ (19,625 ) |
Changes in Accumulated Other Comprehensive Loss by Component | Changes in accumulated other comprehensive (loss) income by component during the years ended December 31, 2018 and 2017 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, 2017 $ (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 ) Other comprehensive income (loss) before reclassifications (6,098 ) 37 679 (5,382 ) Amounts reclassified from accumulated other comprehensive income (loss) - (170 ) 339 (a) 169 Net current period other comprehensive income (loss) (6,098 ) (133 ) 1,018 (5,213 ) Balance at December 31, 2018 $ (22,635 ) $ 12 $ (2,215 ) $ (24,838 ) (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. |
DESCRIPTION OF BUSINESS AND S_4
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) | 12 Months Ended |
Dec. 31, 2018Segment | |
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
Number of reportable segments | 3 |
DESCRIPTION OF BUSINESS AND S_5
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Cash Equivalents, Effects of Foreign Currency, Product Warranties, Depreciation and Goodwill and Identifiable Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | ||
Net realized and unrealized currency exchange (losses) gains | $ 2,663 | $ (2,770) |
Goodwill and Identifiable Intangible Assets [Abstract] | ||
Percentage of identifiable intangible assets | 14.10% | 16.10% |
Maximum [Member] | ||
Cash Equivalents [Abstract] | ||
Amount insured by FDIC in each institutions | $ 250 | |
Product Warranty Liability [Line Items] | ||
Standard warranty period of product | 3 years | |
Goodwill and Identifiable Intangible Assets [Abstract] | ||
Other intangible assets amortization period | 16 years | |
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 | 1 year | |
Buildings and Leasehold Improvements [Member] | Maximum [Member] | ||
Depreciation [Abstract] | ||
Property, plant and equipment, useful life | 33 years | |
Buildings and Leasehold Improvements [Member] | Minimum [Member] | ||
Depreciation [Abstract] | ||
Property, plant and equipment, useful life | 2 years | |
Machinery and Equipment [Member] | Maximum [Member] | ||
Depreciation [Abstract] | ||
Property, plant and equipment, useful life | 15 years | |
Machinery and Equipment [Member] | Minimum [Member] | ||
Depreciation [Abstract] | ||
Property, plant and equipment, useful life | 3 years |
DESCRIPTION OF BUSINESS AND S_6
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
EARNINGS PER SHARE [Abstract] | ||
Anti-dilutive securities excluded from earnings per share calculation (in shares) | 0 | 0 |
Numerator [Abstract] | ||
Net earnings (loss) | $ 20,709 | $ (11,897) |
Undistributed earnings (loss) | 17,391 | (15,176) |
Class A [Member] | ||
Numerator [Abstract] | ||
Net earnings (loss) | 3,521 | (2,113) |
Less dividends declared | 522 | 522 |
Undistributed earnings (loss) | $ 2,999 | $ (2,635) |
Weighted average shares outstanding [Abstract] | ||
Weighted average shares outstanding (in shares) | 2,175 | 2,175 |
Net earnings (loss) per share [Abstract] | ||
Basic and diluted (in dollars per share) | $ 1.62 | $ (0.97) |
Class B [Member] | ||
EARNINGS PER SHARE [Abstract] | ||
Dividend rate Class B common stock in excess of dividend rate of Class A common stock | 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% |
Numerator [Abstract] | ||
Net earnings (loss) | $ 17,188 | $ (9,784) |
Less dividends declared | 2,796 | 2,757 |
Undistributed earnings (loss) | $ 14,392 | $ (12,541) |
Weighted average shares outstanding [Abstract] | ||
Weighted average shares outstanding (in shares) | 9,939 | 9,857 |
Net earnings (loss) per share [Abstract] | ||
Basic and diluted (in dollars per share) | $ 1.73 | $ (0.99) |
DESCRIPTION OF BUSINESS AND S_7
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Research and Development (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Research and Development ("R&D") [Abstract] | |||
Research and development costs | $ 29,400 | $ 28,800 | $ 26,700 |
DESCRIPTION OF BUSINESS AND S_8
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Recently Adopted Accounting Standards (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2018 | |
Summary of Adjustments to Conform to New Guidance [Abstract] | ||
Retained earnings | $ 147,807 | $ 168,695 |
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 2016-09 [Member] | Adjustments Due to ASC 606 [Member] | ||
Summary of Adjustments to Conform to New Guidance [Abstract] | ||
Retained earnings | $ 3,400 | |
ASU 2016-02 [Member] | Plan [Member] | Minimum [Member] | ||
Summary of Adjustments to Conform to New Guidance [Abstract] | ||
Right-of-use assets | 18,000 | |
Lease liabilities | 18,000 | |
ASU 2016-02 [Member] | Plan [Member] | Maximum [Member] | ||
Summary of Adjustments to Conform to New Guidance [Abstract] | ||
Right-of-use assets | 22,000 | |
Lease liabilities | $ 22,000 |
ACQUISITION (Details)
ACQUISITION (Details) - USD ($) $ in Thousands | Oct. 01, 2018 | Dec. 31, 2018 | Dec. 31, 2017 |
Details of Acquisition [Abstract] | |||
Net sales | $ 548,184 | $ 491,611 | |
BCMZ [Member] | |||
Details of Acquisition [Abstract] | |||
Purchase price in cash | $ 2,600 | ||
Net sales | 500 | ||
Identifiable assets acquired | 2,986 | ||
BCMZ [Member] | Maximum [Member] | |||
Details of Acquisition [Abstract] | |||
Acquisition-related costs | $ 100 | ||
BCMZ [Member] | Customer Relationships [Member] | |||
Details of Acquisition [Abstract] | |||
Identifiable assets acquired | $ 400 | ||
Estimated future life | 10 years |
ACQUISITION, Fair Values of Con
ACQUISITION, Fair Values of Consideration Transferred and Identifiable Net assets Acquired (Details) - USD ($) $ in Thousands | Oct. 01, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Fair Values of Consideration Transferred and Identifiable Net assets Acquired [Abstract] | ||||
Goodwill | $ 19,817 | $ 20,177 | $ 17,951 | |
BCMZ [Member] | ||||
Fair Values of Consideration Transferred and Identifiable Net assets Acquired [Abstract] | ||||
Identifiable assets acquired | $ 2,986 | |||
Liabilities assumed | (1,688) | |||
Net identifiable assets acquired | 1,298 | 1,298 | 0 | |
Goodwill | 1,290 | 1,290 | 0 | |
Net assets acquired | 2,588 | 2,588 | 0 | |
Fair value of consideration transferred | $ 2,588 | $ 2,588 | $ 0 |
REVENUE, Significant Payment Te
REVENUE, Significant Payment Terms (Details) | 12 Months Ended |
Dec. 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 |
Maximum [Member] | |
Warranties [Abstract] | |
Standard warranty period of product | 3 years |
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 | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disaggregation of Revenue [Abstract] | ||
Net sales | $ 548,184 | $ 491,611 |
Direct to Customer [Member] | ||
Disaggregation of Revenue [Abstract] | ||
Net sales | 398,659 | |
Through Distribution [Member] | ||
Disaggregation of Revenue [Abstract] | ||
Net sales | 149,525 | |
Connectivity Solutions [Member] | ||
Disaggregation of Revenue [Abstract] | ||
Net sales | 186,724 | 170,337 |
Magnetic Solutions [Member] | ||
Disaggregation of Revenue [Abstract] | ||
Net sales | 185,407 | 161,011 |
Power Solutions and Protection [Member] | ||
Disaggregation of Revenue [Abstract] | ||
Net sales | 176,053 | 160,263 |
North America [Member] | ||
Disaggregation of Revenue [Abstract] | ||
Net sales | 271,691 | 245,834 |
North America [Member] | Direct to Customer [Member] | ||
Disaggregation of Revenue [Abstract] | ||
Net sales | 175,290 | |
North America [Member] | Through Distribution [Member] | ||
Disaggregation of Revenue [Abstract] | ||
Net sales | 96,401 | |
North America [Member] | Connectivity Solutions [Member] | ||
Disaggregation of Revenue [Abstract] | ||
Net sales | 135,454 | |
North America [Member] | Magnetic Solutions [Member] | ||
Disaggregation of Revenue [Abstract] | ||
Net sales | 37,805 | |
North America [Member] | Power Solutions and Protection [Member] | ||
Disaggregation of Revenue [Abstract] | ||
Net sales | 98,432 | |
Asia [Member] | ||
Disaggregation of Revenue [Abstract] | ||
Net sales | 187,203 | 167,680 |
Asia [Member] | Direct to Customer [Member] | ||
Disaggregation of Revenue [Abstract] | ||
Net sales | 161,114 | |
Asia [Member] | Through Distribution [Member] | ||
Disaggregation of Revenue [Abstract] | ||
Net sales | 26,089 | |
Asia [Member] | Connectivity Solutions [Member] | ||
Disaggregation of Revenue [Abstract] | ||
Net sales | 17,140 | |
Asia [Member] | Magnetic Solutions [Member] | ||
Disaggregation of Revenue [Abstract] | ||
Net sales | 137,998 | |
Asia [Member] | Power Solutions and Protection [Member] | ||
Disaggregation of Revenue [Abstract] | ||
Net sales | 32,065 | |
Europe [Member] | ||
Disaggregation of Revenue [Abstract] | ||
Net sales | 89,290 | $ 78,097 |
Europe [Member] | Direct to Customer [Member] | ||
Disaggregation of Revenue [Abstract] | ||
Net sales | 62,255 | |
Europe [Member] | Through Distribution [Member] | ||
Disaggregation of Revenue [Abstract] | ||
Net sales | 27,035 | |
Europe [Member] | Connectivity Solutions [Member] | ||
Disaggregation of Revenue [Abstract] | ||
Net sales | 34,130 | |
Europe [Member] | Magnetic Solutions [Member] | ||
Disaggregation of Revenue [Abstract] | ||
Net sales | 9,604 | |
Europe [Member] | Power Solutions and Protection [Member] | ||
Disaggregation of Revenue [Abstract] | ||
Net sales | $ 45,556 |
REVENUE, Cumulative Effect of C
REVENUE, Cumulative Effect of Changes made to Consolidated Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Balance Sheet [Abstract] | ||
Unbilled receivables | $ 15,799 | $ 0 |
Inventory | 120,068 | 107,719 |
Other current liabilities | 15,061 | 6,204 |
Retained earnings | 168,695 | 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 | 15,799 | 14,536 |
Inventory | (11,817) | (11,044) |
Other current liabilities | 20 | 43 |
Retained earnings | 3,961 | $ 3,449 |
Balances Without Adoption of ASC 606 [Member] | ASU 2014-09 [Member] | ||
Balance Sheet [Abstract] | ||
Unbilled receivables | 0 | |
Inventory | 131,885 | |
Other current liabilities | 15,041 | |
Retained earnings | $ 164,734 |
REVENUE, Impact of Adoption on
REVENUE, Impact of Adoption on Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Assets [Abstract] | ||
Unbilled receivables | $ 15,799 | $ 0 |
Inventories | 120,068 | 107,719 |
Liabilities [Abstract] | ||
Other current liabilities | 15,061 | 6,204 |
Equity [Abstract] | ||
Retained earnings | 168,695 | 147,807 |
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 | 131,885 | |
Liabilities [Abstract] | ||
Other current liabilities | 15,041 | |
Equity [Abstract] | ||
Retained earnings | 164,734 | |
Effect of Change Higher/(Lower) [Member] | ASU 2014-09 [Member] | ||
Assets [Abstract] | ||
Unbilled receivables | 15,799 | 14,536 |
Inventories | (11,817) | (11,044) |
Liabilities [Abstract] | ||
Other current liabilities | 20 | 43 |
Equity [Abstract] | ||
Retained earnings | $ 3,961 | $ 3,449 |
REVENUE, Impact of Adoption o_2
REVENUE, Impact of Adoption on Consolidated Statement of Operations (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Operations [Abstract] | ||
Net sales | $ 548,184 | $ 491,611 |
Cost of sales | 438,414 | 389,262 |
Operating income | 29,611 | 17,386 |
Provision for income taxes | 2,907 | 21,540 |
Net earnings | 20,709 | $ (11,897) |
Balances Without Adoption of ASC 606 [Member] | ASU 2014-09 [Member] | ||
Statement of Operations [Abstract] | ||
Net sales | 546,922 | |
Cost of sales | 437,641 | |
Operating income | 29,122 | |
Provision for income taxes | 2,930 | |
Net earnings | 20,197 | |
Effect of Change Higher/(Lower) [Member] | ASU 2014-09 [Member] | ||
Statement of Operations [Abstract] | ||
Net sales | 1,262 | |
Cost of sales | 773 | |
Operating income | 489 | |
Provision for income taxes | (23) | |
Net earnings | $ 512 |
REVENUE, Contract Assets and Co
REVENUE, Contract Assets and Contract Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Contract with Customer, Asset and Liability [Abstract] | ||
Contract assets - current (unbilled receivable) | $ 15,799 | $ 0 |
Contract liabilities - current (deferred revenue) | 1,036 | |
Deferred Revenue [Roll Forward] | ||
Balance, beginning of period | 855 | |
New advance payments received | 6,517 | |
Recognized as revenue during period | (6,322) | |
Currency translation | (14) | |
Balance, end of period | $ 1,036 | |
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) $ in Millions | Dec. 31, 2018USD ($) |
REVENUE [Abstract] | |
Revenue, remaining performance obligation | $ 18.2 |
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 | 78.00% |
Remaining performance satisfaction period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Transaction Price Allocated to Future Obligations [Abstract] | |
Remaining performance obligation percentage | 20.00% |
Remaining performance satisfaction period |
GOODWILL AND OTHER INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLE ASSETS, Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Goodwill [Roll Forward] | ||
Goodwill, gross beginning of period | $ 148,768 | $ 146,542 |
Accumulated impairment charges, beginning of period | (128,591) | (128,591) |
Goodwill, net beginning of period | 20,177 | 17,951 |
Goodwill allocation related to acquisition | 1,290 | |
Foreign currency translation | (1,650) | 2,226 |
Goodwill, gross end of period | 148,408 | 148,768 |
Accumulated impairment charges, end of period | (128,591) | (128,591) |
Goodwill, net end of period | 19,817 | 20,177 |
North America [Member] | ||
Goodwill [Roll Forward] | ||
Goodwill, gross beginning of period | 63,364 | 63,364 |
Accumulated impairment charges, beginning of period | (54,474) | (54,474) |
Goodwill, net beginning of period | 8,890 | 8,890 |
Goodwill allocation related to acquisition | 0 | |
Foreign currency translation | 0 | 0 |
Goodwill, gross end of period | 63,364 | 63,364 |
Accumulated impairment charges, end of period | (54,474) | (54,474) |
Goodwill, net end of period | $ 8,890 | 8,890 |
Reporting unit, percentage of fair value in excess of carrying amount | 20.30% | |
Asia [Member] | ||
Goodwill [Roll Forward] | ||
Goodwill, gross beginning of period | $ 54,508 | 54,508 |
Accumulated impairment charges, beginning of period | (54,508) | (54,508) |
Goodwill, net beginning of period | 0 | 0 |
Goodwill allocation related to acquisition | 0 | |
Foreign currency translation | 0 | 0 |
Goodwill, gross end of period | 54,508 | 54,508 |
Accumulated impairment charges, end of period | (54,508) | (54,508) |
Goodwill, net end of period | 0 | 0 |
Europe [Member] | ||
Goodwill [Roll Forward] | ||
Goodwill, gross beginning of period | 30,896 | 28,670 |
Accumulated impairment charges, beginning of period | (19,609) | (19,609) |
Goodwill, net beginning of period | 11,287 | 9,061 |
Goodwill allocation related to acquisition | 1,290 | |
Foreign currency translation | (1,650) | 2,226 |
Goodwill, gross end of period | 30,536 | 30,896 |
Accumulated impairment charges, end of period | (19,609) | (19,609) |
Goodwill, net end of period | $ 10,927 | $ 11,287 |
Reporting unit, percentage of fair value in excess of carrying amount | 23.80% |
GOODWILL AND OTHER INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLE ASSETS, Other Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Components of definite and indefinite-lived intangible assets [Abstract] | ||
Gross Carrying Amount | $ 97,886 | $ 98,521 |
Accumulated Amortization | 35,197 | 29,155 |
Net Carrying Amount | 62,689 | 69,366 |
Amortization expense | 6,400 | 6,700 |
Estimated amortization expense for intangible assets [Abstract] | ||
2,019 | 6,289 | |
2,020 | 6,263 | |
2,021 | 6,248 | |
2,022 | 4,877 | |
2,023 | $ 3,621 | |
Minimum [Member] | ||
Other intangible assets [Abstract] | ||
Other intangible assets amortization period | 1 year | |
Maximum [Member] | ||
Other intangible assets [Abstract] | ||
Other intangible assets amortization period | 16 years | |
Patents, Licenses and Technology [Member] | ||
Components of definite and indefinite-lived intangible assets [Abstract] | ||
Gross Carrying Amount | $ 38,845 | 39,218 |
Accumulated Amortization | 18,281 | 14,926 |
Net Carrying Amount | 20,564 | 24,292 |
Customer Relationships [Member] | ||
Components of definite and indefinite-lived intangible assets [Abstract] | ||
Gross Carrying Amount | 44,588 | 44,704 |
Accumulated Amortization | 14,193 | 11,478 |
Net Carrying Amount | 30,395 | 33,226 |
Non-compete Agreements [Member] | ||
Components of definite and indefinite-lived intangible assets [Abstract] | ||
Gross Carrying Amount | 2,683 | 2,711 |
Accumulated Amortization | 2,683 | 2,711 |
Net Carrying Amount | 0 | 0 |
Trademarks [Member] | ||
Components of definite and indefinite-lived intangible assets [Abstract] | ||
Gross Carrying Amount | 11,770 | 11,888 |
Accumulated Amortization | 40 | 40 |
Net Carrying Amount | $ 11,730 | $ 11,848 |
Other Intangible Assets Excluding Trademarks [Member] | Minimum [Member] | ||
Other intangible assets [Abstract] | ||
Other intangible assets amortization period | 1 year | |
Other Intangible Assets Excluding Trademarks [Member] | Maximum [Member] | ||
Other intangible assets [Abstract] | ||
Other intangible assets amortization period | 16 years |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Fair Value Measurement [Abstract] | ||
Proceeds from sale of marketable securities within rabbi trust | $ 1,348 | $ 0 |
Transfers in out between levels | 0 | 0 |
Fair value of total debt | 117,900 | 124,800 |
Carrying amount of long-term debt | 114,200 | 122,700 |
Investments held in Rabbi Trust [Member] | ||
Fair Value Measurement [Abstract] | ||
Available-for-sale securities measured at fair value | 1,400 | 1,500 |
Investments held in Rabbi Trust [Member] | SERP [Member] | ||
Fair Value Measurement [Abstract] | ||
Gross unrealized gains associated with the investment held in the rabbi trust | 200 | |
Realized gains on sale of securities | 200 | |
Proceeds from sale of marketable securities within rabbi trust | 1,300 | |
Nonrecurring [Member] | ||
Fair Value Measurement [Abstract] | ||
Financial assets accounted at fair value | $ 0 | $ 0 |
OTHER ASSETS (Details)
OTHER ASSETS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Other assets [Abstract] | |||
Cash surrender value of the COLI | $ 11,600 | $ 12,300 | |
Increase (decrease) in cash surrender value | (400) | 1,300 | |
Investments held in Rabbi Trust [Member] | |||
Other assets [Abstract] | |||
Cost of investments | 1,400 | 1,300 | |
Securities measured at fair value | 1,400 | 1,500 | |
Unrealized gain on investments | 0 | 200 | |
Supplemental Employee Retirement Plans [Member] | |||
Other assets [Abstract] | |||
Benefit obligation | 18,676 | 19,134 | $ 16,900 |
Value of assets earmarked for SERP use but not restricted to that use | $ 13,000 | $ 14,000 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Components of inventories [Abstract] | ||
Raw materials | $ 63,348 | $ 46,712 |
Work in progress | 21,441 | 17,688 |
Finished goods | 35,279 | 43,319 |
Inventories | $ 120,068 | $ 107,719 |
PROPERTY, PLANT AND EQUIPMENT_3
PROPERTY, PLANT AND EQUIPMENT, NET (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Property, plant and equipment [Abstract] | ||
Property, plant and equipment, gross | $ 163,804 | $ 157,304 |
Accumulated depreciation | (119,872) | (113,809) |
Property, plant and equipment, net | 43,932 | 43,495 |
Depreciation expense | 11,800 | 14,000 |
Land [Member] | ||
Property, plant and equipment [Abstract] | ||
Property, plant and equipment, gross | 2,251 | 2,259 |
Buildings and Improvements [Member] | ||
Property, plant and equipment [Abstract] | ||
Property, plant and equipment, gross | 30,119 | 30,761 |
Machinery and Equipment [Member] | ||
Property, plant and equipment [Abstract] | ||
Property, plant and equipment, gross | 126,747 | 122,773 |
Construction in Progress [Member] | ||
Property, plant and equipment [Abstract] | ||
Property, plant and equipment, gross | $ 4,687 | $ 1,511 |
INCOME TAXES, Uncertain Tax Pos
INCOME TAXES, Uncertain Tax Positions and Interest and Penalties (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Income Taxes Uncertain Tax Positions and Tax Reform [Abstract] | ||
Liabilities for uncertain tax positions - current | $ 1,400 | $ 2,500 |
Liability for uncertain tax positions - noncurrent | 27,553 | 27,948 |
Liability for uncertain positions expected to be resolved in next fiscal year | 1,100 | |
Interest and penalties uncertain tax positions recognized | 1,300 | 900 |
Reconciliation of beginning and ending amount of liability for uncertain tax positions [Roll Forward] | ||
Liability for uncertain tax positions - beginning of period | 30,430 | 27,828 |
Additions based on tax positions related to the current year | 1,703 | 2,168 |
Additions relating to acquisitions | 0 | 0 |
Translation adjustment - increase | 804 | |
Translation adjustment - decrease | (657) | |
Settlement/expiration of statutes of limitations | (2,525) | (370) |
Liability for uncertain tax positions - end of period | 28,951 | 30,430 |
Interest and Penalties [Abstract] | ||
(Benefit) on reversal of interest and penalties | (300) | 0 |
Accrued interest and penalties uncertain tax positions | 3,800 | 3,200 |
Tax Year 2008 [Member] | ||
Income Taxes Uncertain Tax Positions and Tax Reform [Abstract] | ||
Liabilities for uncertain tax positions - current | 1,000 | |
Tax Year 2006 [Member] | ||
Income Taxes Uncertain Tax Positions and Tax Reform [Abstract] | ||
Liabilities for uncertain tax positions - current | 1,100 | |
Tax Year 2014 [Member] | ||
Income Taxes Uncertain Tax Positions and Tax Reform [Abstract] | ||
Liabilities for uncertain tax positions - current | $ 1,400 | |
Tax Year 2015 [Member] | ||
Income Taxes Uncertain Tax Positions and Tax Reform [Abstract] | ||
Liabilities for uncertain tax positions - current | $ 100 |
INCOME TAXES, Provision (Benefi
INCOME TAXES, Provision (Benefit) for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Income (Loss) Before income Taxes [Abstract] | ||
(Loss) earnings before (benefit) provision for income taxes included (loss) earnings from domestic operations | $ 300 | $ (2,000) |
(Loss) earnings before (benefit) provision for income taxes from foreign operations | 23,300 | 11,700 |
Current [Abstract] | ||
Federal | (3,517) | 16,055 |
State | 152 | 115 |
Foreign | 3,782 | 5,685 |
Total | 417 | 21,855 |
Deferred [Abstract] | ||
Federal | 2,895 | (1,312) |
State | 196 | (329) |
Foreign | (601) | 1,326 |
Total | 2,490 | (315) |
Tax provision computed at the Company's effective tax rate | 2,907 | 21,540 |
Reconciliation of taxes on income computed at the federal statutory rate [Abstract] | ||
Tax provision computed at the federal statutory rate | 4,959 | 3,375 |
Increase (decrease) in taxes resulting from [Abstract] | ||
Different tax rates applicable to foreign operations | 1,231 | (2,531) |
(Reversal of) increase in liability for uncertain tax positions - net | (822) | 1,082 |
Impact of U.S. Tax Reform | (2,628) | 19,171 |
Utilization of research and experimentation, solar and foreign tax credits | (300) | (272) |
State taxes, net of federal benefit | 322 | (261) |
Foreign tax on gain, net of federal benefit | 0 | 1,223 |
Other, including qualified production activity credits, SERP/COLI income, under/(over) accruals, unrealized foreign exchange gains and amortization of purchase accounting intangibles | 145 | (247) |
Tax provision computed at the Company's effective tax rate | $ 2,907 | $ 21,540 |
Increase (decrease) in effective tax rate resulting from [Abstract] | ||
Federal statutory income tax rate | 21.00% | 35.00% |
Different tax rates applicable to foreign operations, percentage | 5.00% | (26.00%) |
(Reversal of) increase in liability for uncertain tax positions - net, percentage | (3.00%) | 11.00% |
Impact of U.S. Tax Reform, percentage | (11.00%) | 199.00% |
Utilization of research and development, solar and foreign tax credits, percentage | (1.00%) | (3.00%) |
State taxes, net of federal benefit, percentage | 1.00% | (3.00%) |
Foreign tax on gain, net of federal benefit, percentage | 0.00% | 13.00% |
Other, including qualified production activity credits, SERP/COLI income, under/(over) accruals, unrealized foreign exchange gains and amortization of purchase accounting intangibles, percentage | 1.00% | (3.00%) |
Tax provision computed at the Company's effective tax rate, percentage | 12.00% | 223.00% |
INCOME TAXES, Tax Credits and N
INCOME TAXES, Tax Credits and Net Operating Losses (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Additional Income Tax Information [Abstract] | ||
Federal statutory income tax rate | 21.00% | 35.00% |
Deferred tax assets, net operating loss carryforwards | $ 8,370 | $ 10,524 |
Income and dividend withholding taxes | 400 | |
One-time provisional transition tax expense | $ 18,100 | |
Transitional tax expense | 15,500 | |
Deemed repatriation tax | (2,600) | |
Other Current Liabilities [Member] | ||
Additional Income Tax Information [Abstract] | ||
Tax Cuts And Jobs Act Of2017 Transition Tax For Accumulated Foreign Earnings Liability | 10,800 | |
Federal and State Jurisdiction [Member] | ||
Additional Income Tax Information [Abstract] | ||
Operating loss carryforwards | 2,100 | |
Tax credit carryforward | 1,500 | |
Tax credit carryforward, valuation allowance | (1,000) | |
Deferred tax assets, net operating loss carryforwards | 400 | |
Federal and State Jurisdiction [Member] | Array [Member] | ||
Additional Income Tax Information [Abstract] | ||
Operating loss carryforwards | 1,800 | |
Foreign Jurisdictions [Member] | ||
Additional Income Tax Information [Abstract] | ||
Operating loss carryforwards | 35,600 | |
Tax credit carryforward | 300 | |
Operating loss carryforwards, valuation allowance | (8,200) | |
Deferred tax assets, net operating loss carryforwards | 8,200 | |
Foreign Jurisdictions [Member] | Capital Loss Carryforward [Member] | ||
Additional Income Tax Information [Abstract] | ||
Tax credit carryforward | $ 200 | |
Macao [Member] | ||
Additional Income Tax Information [Abstract] | ||
Federal statutory income tax rate | 12.00% | |
People's Republic of China (PRC) [Member] | ||
Additional Income Tax Information [Abstract] | ||
Federal statutory income tax rate | 25.00% |
INCOME TAXES, Deferred Income T
INCOME TAXES, Deferred Income Tax Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred tax assets [Abstract] | ||
State tax credits | $ 1,000 | $ 1,033 |
Unfunded pension liability | 605 | 1,139 |
Reserves and accruals | 2,483 | 2,828 |
Federal, state and foreign net operating loss credit carryforwards | 8,370 | 10,524 |
Depreciation | 850 | 917 |
Other accruals | 5,641 | 4,915 |
Total deferred tax assets | 18,949 | 21,356 |
Deferred tax liabilities [Abstract] | ||
Depreciation | 1,666 | 989 |
Amortization | 7,930 | 8,490 |
Other accruals | 893 | 946 |
Total deferred tax liabilities | 10,489 | 10,425 |
Valuation allowance | 9,200 | 8,343 |
Net deferred tax assets | $ 2,588 | |
Net deferred tax liabilities | $ (740) |
DEBT (Details)
DEBT (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2016 | Jun. 19, 2014 | |
Credit and Security Agreement [Abstract] | ||||||
Deferred financing costs | $ 2,300 | $ 1,800 | $ 2,300 | |||
Debt issuance cost payment | 0 | 2,012 | ||||
Amortization of deferred financing costs | 531 | 2,259 | ||||
Scheduled principal payments [Abstract] | ||||||
Total long-term debt | 122,700 | 114,200 | 122,700 | |||
Less: Current maturities of long-term debt | (2,641) | (2,508) | (2,641) | |||
Noncurrent portion of long-term debt | $ 120,053 | $ 111,705 | $ 120,053 | |||
KeyBank [Member] | ||||||
Credit and Security Agreement [Abstract] | ||||||
Interest rate on borrowings outstanding | 3.38% | 4.31% | 3.38% | |||
Effective LIBOR rate | 2.56% | 1.63% | ||||
Basis spread on variable rate | 1.75% | 1.75% | ||||
Interest expense incurred | $ 5,300 | $ 6,800 | ||||
Scheduled principal payments [Abstract] | ||||||
2,019 | 2,974 | |||||
2,020 | 5,948 | |||||
2,021 | 5,948 | |||||
2,022 | 101,118 | |||||
Total long-term debt | $ 125,000 | 115,988 | 125,000 | |||
Less: Current maturities of long-term debt | (2,974) | |||||
Noncurrent portion of long-term debt | 113,014 | |||||
KeyBank [Member] | Revolving Credit Facility [Member] | ||||||
Credit and Security Agreement [Abstract] | ||||||
Line of credit, amount outstanding | 0 | 0 | 0 | |||
Unused borrowing capacity | 75,000 | $ 75,000 | $ 75,000 | |||
KeyBank [Member] | 2014 Credit and Security Agreement [Member] | ||||||
Credit and Security Agreement [Abstract] | ||||||
Deferred financing costs | $ 5,800 | |||||
Deferred financing costs amortization period | 5 years | |||||
KeyBank [Member] | 2014 Credit and Security Agreement [Member] | Revolving Credit Facility [Member] | ||||||
Credit and Security Agreement [Abstract] | ||||||
Maximum borrowing capacity | $ 50,000 | |||||
KeyBank [Member] | 2014 Credit and Security Agreement [Member] | Term Loan [Member] | ||||||
Credit and Security Agreement [Abstract] | ||||||
Maximum borrowing capacity | 145,000 | |||||
KeyBank [Member] | 2014 Credit and Security Agreement [Member] | Delayed Draw Term Loan [Member] | ||||||
Credit and Security Agreement [Abstract] | ||||||
Maximum borrowing capacity | 70,000 | |||||
KeyBank [Member] | 2016 Amendment [Member] | ||||||
Credit and Security Agreement [Abstract] | ||||||
Deferred financing costs | $ 500 | |||||
Debt issuance cost payment | $ 700 | |||||
KeyBank [Member] | 2017 Amendment and Refinancing [Member] | ||||||
Credit and Security Agreement [Abstract] | ||||||
Debt issuance cost payment | $ 1,800 | |||||
Line of credit facility, maturity date | Dec. 11, 2022 | |||||
Mandatory amortization payment period | 4 years | |||||
Amortization of deferred financing costs | $ 1,000 | |||||
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] | ||||||
Credit and Security Agreement [Abstract] | ||||||
Basis spread on variable rate | 1.00% | |||||
Term of variable rate | 1 month | |||||
KeyBank [Member] | 2017 Amendment and Refinancing [Member] | LIBOR [Member] | Minimum [Member] | ||||||
Credit and Security Agreement [Abstract] | ||||||
Basis spread on variable rate | 1.375% | |||||
KeyBank [Member] | 2017 Amendment and Refinancing [Member] | LIBOR [Member] | Maximum [Member] | ||||||
Credit and Security Agreement [Abstract] | ||||||
Basis spread on variable rate | 2.75% | |||||
KeyBank [Member] | 2017 Amendment and Refinancing [Member] | Federal Funds Rate [Member] | ||||||
Credit and Security Agreement [Abstract] | ||||||
Basis spread on variable rate | 0.50% | |||||
KeyBank [Member] | 2017 Amendment and Refinancing [Member] | Alternate Base Rate [Member] | Minimum [Member] | ||||||
Credit and Security Agreement [Abstract] | ||||||
Basis spread on variable rate | 0.375% | |||||
KeyBank [Member] | 2017 Amendment and Refinancing [Member] | Alternate Base Rate [Member] | Maximum [Member] | ||||||
Credit and Security Agreement [Abstract] | ||||||
Basis spread on variable rate | 1.75% | |||||
KeyBank [Member] | 2017 Amendment and Refinancing [Member] | Revolving Credit Facility [Member] | ||||||
Credit and Security Agreement [Abstract] | ||||||
Maximum borrowing capacity | $ 75,000 | |||||
KeyBank [Member] | 2017 Amendment and Refinancing [Member] | Term Loan [Member] | ||||||
Credit and Security Agreement [Abstract] | ||||||
Maximum borrowing capacity | $ 125,000 |
ACCRUED EXPENSES (Details)
ACCRUED EXPENSES (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
ACCRUED EXPENSES [Abstract] | ||
Sales commissions | $ 2,609 | $ 2,461 |
Subcontracting labor | 1,550 | 1,408 |
Salaries, bonuses and related benefits | 18,275 | 16,531 |
Warranty accrual | 1,078 | 1,769 |
Other | 8,778 | 8,339 |
Accrued expenses | $ 32,290 | $ 30,508 |
SEGMENTS, Key Financial Data (D
SEGMENTS, Key Financial Data (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018USD ($)SegmentIndustry | Dec. 31, 2017USD ($) | |
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 | $ 548,184 | $ 491,611 |
Income from operations | 29,611 | 17,386 |
Total assets | 443,524 | 431,265 |
Purchases of property, plant and equipment | 11,594 | 6,425 |
Depreciation and amortization expense | 18,207 | 20,718 |
Restructuring charges | 222 | 308 |
North America [Member] | ||
Summary of key financial data [Abstract] | ||
Net sales | 271,691 | 245,834 |
Asia [Member] | ||
Summary of key financial data [Abstract] | ||
Net sales | 187,203 | 167,680 |
Europe [Member] | ||
Summary of key financial data [Abstract] | ||
Net sales | 89,290 | 78,097 |
Reportable Operating Segments [Member] | North America [Member] | ||
Summary of key financial data [Abstract] | ||
Net sales | 284,245 | 257,541 |
Income from operations | 6,769 | 6,195 |
Total assets | 177,902 | 172,674 |
Purchases of property, plant and equipment | 4,836 | 1,734 |
Depreciation and amortization expense | 8,906 | 10,641 |
Reportable Operating Segments [Member] | Asia [Member] | ||
Summary of key financial data [Abstract] | ||
Net sales | 279,965 | 249,506 |
Income from operations | 16,621 | 8,964 |
Total assets | 175,713 | 152,447 |
Purchases of property, plant and equipment | 5,661 | 2,617 |
Depreciation and amortization expense | 5,842 | 6,728 |
Reportable Operating Segments [Member] | Europe [Member] | ||
Summary of key financial data [Abstract] | ||
Net sales | 103,853 | 89,765 |
Income from operations | 6,221 | 2,227 |
Total assets | 89,909 | 106,144 |
Purchases of property, plant and equipment | 1,097 | 2,074 |
Depreciation and amortization expense | 3,459 | 3,349 |
Intersegment Eliminations [Member] | ||
Summary of key financial data [Abstract] | ||
Net sales | $ (119,879) | $ (105,201) |
SEGMENTS, Entity Wide Informati
SEGMENTS, Entity Wide Information (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018USD ($)Customer | Dec. 31, 2017USD ($)Customer | |
Segment Information by Geographic Area [Abstract] | ||
Net sales | $ 548,184 | $ 491,611 |
Long-lived assets | 70,013 | 71,468 |
Net Sales [Member] | Customer Concentration Risk [Member] | ||
Segment Information by Geographic Area [Abstract] | ||
Net sales | $ 67,700 | $ 57,700 |
Number of customers representing sales in excess of ten percent | Customer | 1 | 1 |
Concentration risk percentage | 12.30% | 11.70% |
Connectivity Solutions [Member] | ||
Segment Information by Geographic Area [Abstract] | ||
Net sales | $ 186,724 | $ 170,337 |
Magnetic Solutions [Member] | ||
Segment Information by Geographic Area [Abstract] | ||
Net sales | 185,407 | 161,011 |
Power Solutions and Protection [Member] | ||
Segment Information by Geographic Area [Abstract] | ||
Net sales | 176,053 | 160,263 |
United States [Member] | ||
Segment Information by Geographic Area [Abstract] | ||
Net sales | 271,691 | 245,834 |
Long-lived assets | 27,505 | 27,594 |
Macao [Member] | ||
Segment Information by Geographic Area [Abstract] | ||
Net sales | 187,204 | 167,681 |
United Kingdom [Member] | ||
Segment Information by Geographic Area [Abstract] | ||
Net sales | 26,340 | 24,110 |
Long-lived assets | 2,330 | 1,345 |
Slovakia [Member] | ||
Segment Information by Geographic Area [Abstract] | ||
Net sales | 24,123 | 14,194 |
Long-lived assets | 6,475 | 7,625 |
Germany [Member] | ||
Segment Information by Geographic Area [Abstract] | ||
Net sales | 15,298 | 13,857 |
Switzerland [Member] | ||
Segment Information by Geographic Area [Abstract] | ||
Net sales | 13,279 | 15,366 |
Long-lived assets | 3,023 | 3,632 |
All Other Foreign Countries [Member] | ||
Segment Information by Geographic Area [Abstract] | ||
Net sales | 10,249 | 10,569 |
Long-lived assets | 1,117 | 1,121 |
Asia [Member] | ||
Segment Information by Geographic Area [Abstract] | ||
Net sales | $ 187,203 | 167,680 |
Asia [Member] | Assets [Member] | Geographic Concentration Risk [Member] | ||
Segment Information by Geographic Area [Abstract] | ||
Concentration risk percentage | 41.30% | |
Asia [Member] | Connectivity Solutions [Member] | ||
Segment Information by Geographic Area [Abstract] | ||
Net sales | $ 17,140 | |
Asia [Member] | Magnetic Solutions [Member] | ||
Segment Information by Geographic Area [Abstract] | ||
Net sales | 137,998 | |
Asia [Member] | Power Solutions and Protection [Member] | ||
Segment Information by Geographic Area [Abstract] | ||
Net sales | 32,065 | |
People's Republic of China (PRC) [Member] | ||
Segment Information by Geographic Area [Abstract] | ||
Long-lived assets | $ 29,563 | $ 30,151 |
RETIREMENT FUND AND PROFIT SH_3
RETIREMENT FUND AND PROFIT SHARING PLAN, Employees' Savings Plan (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Compensation Expenses [Abstract] | ||
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] | ||
Compensation Expenses [Abstract] | ||
Shares owned by plan (in shares) | 114,839 | |
UNITED STATES | Common Class B [Member] | ||
Compensation Expenses [Abstract] | ||
Shares owned by plan (in shares) | 127,733 | |
HONG KONG | ||
Compensation Expenses [Abstract] | ||
Employer matching contribution, percentage | 7.00% | |
HONG KONG | Minimum [Member] | ||
Compensation Expenses [Abstract] | ||
Employer matching contribution, percentage | 5.00% | |
HONG KONG | Maximum [Member] | ||
Compensation Expenses [Abstract] | ||
Employee matching contribution per participant under prior plan | 5.00% | |
Retirement Fund [Member] | HONG KONG | ||
Compensation Expenses [Abstract] | ||
Compensation expenses | $ 0.3 | $ 0.3 |
Retirement Fund [Member] | HONG KONG | Common Class A [Member] | ||
Compensation Expenses [Abstract] | ||
Shares owned by plan (in shares) | 3,323 | |
Retirement Fund [Member] | HONG KONG | Common Class B [Member] | ||
Compensation Expenses [Abstract] | ||
Shares owned by plan (in shares) | 17,342 | |
401K Plan [Member] | UNITED STATES | ||
Compensation Expenses [Abstract] | ||
Compensation expenses | $ 1.3 | $ 1.2 |
RETIREMENT FUND AND PROFIT SH_4
RETIREMENT FUND AND PROFIT SHARING PLAN, SERP (Details) - SERP [Member] - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan, Additional Information [Abstract] | ||
Pension expense | $ 1.8 | $ 1.7 |
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 | |
Minimum [Member] | ||
Defined Benefit Plan, Additional Information [Abstract] | ||
Number of monthly payments entitled to beneficiary in case participant dies prior to receiving one hundred twenty monthly payments | 60 months |
RETIREMENT FUND AND PROFIT SH_5
RETIREMENT FUND AND PROFIT SHARING PLAN, SERP, Net Periodic Benefit Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | ||
us-gaap_SupplementalEmployeeRetirementPlanDefinedBenefitMember | us-gaap:DefinedBenefitPlanTypeExtensibleList | |
SERP [Member] | ||
Components of SERP expense [Abstract] | ||
Service cost | $ 732 | $ 700 |
Interest cost | 664 | 673 |
Net amortization | 443 | 375 |
Net periodic benefit cost | $ 1,839 | $ 1,748 |
RETIREMENT FUND AND PROFIT SH_6
RETIREMENT FUND AND PROFIT SHARING PLAN, SERP, Obligations and Funded Status (Details) - SERP [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Change in fair value of plan assets [Roll Forward] | ||
Fair value of plan assets, beginning of period | $ 0 | $ 0 |
Company contributions | 325 | 240 |
Benefits paid | (325) | (240) |
Fair value of plan assets, end of period | 0 | 0 |
Change in benefit obligation [Roll Forward] | ||
Benefit obligation, beginning of period | 19,134 | 16,900 |
Service cost | 732 | 700 |
Interest cost | 664 | 673 |
Benefits paid | (325) | (240) |
Plan amendments | 39 | 198 |
Actuarial (gains) losses | (1,568) | 903 |
Benefit obligation, end of period | 18,676 | 19,134 |
Funded (unfunded) status of plan [Abstract] | ||
Underfunded status, December 31 | (18,676) | (19,134) |
Other disclosures [Abstract] | ||
Accumulated benefit obligation | 16,500 | 16,100 |
Fair value of life insurance policies and marketable securities held in a rabbi trust | 13,000 | 14,000 |
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 | 200 | |
Expected employer contributions in next fiscal year | 300 | |
Expected future benefit payments [Abstract] | ||
2,019 | 379 | |
2,020 | 659 | |
2,021 | 679 | |
2,022 | 902 | |
2,023 | 941 | |
2024 - 2028 | 5,409 | |
Amounts recognized in accumulated other comprehensive loss, pretax [Abstract] | ||
Prior service cost | 918 | 1,135 |
Net loss | 1,977 | 3,732 |
Total amounts recognized in accumulated other comprehensive loss | $ 2,895 | $ 4,867 |
RETIREMENT FUND AND PROFIT SH_7
RETIREMENT FUND AND PROFIT SHARING PLAN, SERP, Actuarial Assumptions (Details) - SERP [Member] | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Net periodic benefit cost [Abstract] | ||
Discount rate | 3.50% | 4.00% |
Rate of compensation increase | 3.00% | 3.00% |
Benefit obligation [Abstract] | ||
Discount rate | 4.00% | 3.50% |
Rate of compensation increase | 2.50% | 3.00% |
SHARE-BASED COMPENSATION (Detai
SHARE-BASED COMPENSATION (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Employee Service Share-based Compensation, Aggregate Disclosures [Abstract] | ||
Pretax stock based compensation cost | $ 2,835 | $ 3,030 |
Percentage of increments earned for share awards | 25.00% | |
Restricted Stock [Member] | ||
Shares [Roll Forward] | ||
Outstanding, beginning of period (in shares) | 424,500 | |
Granted (in shares) | 262,000 | |
Vested (in shares) | (129,600) | |
Forfeited (in shares) | (29,000) | |
Outstanding, end of period (in shares) | 527,900 | 424,500 |
Weighted Average Award Price [Roll Forward] | ||
Outstanding, beginning of period (in dollars per share) | $ 23.23 | |
Granted (in dollars per share) | 24.68 | |
Vested (in dollars per share) | 21.88 | |
Forfeited (in dollars per share) | 21.69 | |
Outstanding, end of period (in dollars per share) | $ 24.37 | $ 23.23 |
Weighted Average Remaining Contractual Term [Abstract] | ||
Outstanding | 3 years 6 months | 3 years |
Pretax unrecognized compensation cost | $ 8,700 | |
Period over which compensation cost is expected to be recognized | 3 years 9 months 18 days | |
Restricted Stock [Member] | Common Class B [Member] | ||
Employee Service Share-based Compensation, Aggregate Disclosures [Abstract] | ||
Number of shares issued (in shares) | 262,000 | 46,400 |
2011 Equity Compensation Plan [Member] | Restricted Stock [Member] | Common Class B [Member] | ||
Employee Service Share-based Compensation, Aggregate Disclosures [Abstract] | ||
Number of shares authorized under the plan (in shares) | 1,400,000 | |
Common shares available for future issuance (in shares) | 359,100 |
COMMON STOCK (Details)
COMMON STOCK (Details) $ / shares in Units, $ in Millions | 12 Months Ended | |
Dec. 31, 2018USD ($)Shareholder$ / shares | Dec. 31, 2017USD ($)$ / shares | |
Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ||
Number of days from trigger date to purchase Class B common shares | 90 days | |
Percentage of common stock held by shareholder one | 23.60% | |
Common stock dividends declared | $ | $ 3.3 | $ 3.3 |
Minimum [Member] | ||
Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ||
Percentage of outstanding common stock held by shareholders | 10.00% | |
Threshold to be met to trigger the Class B protection clause | 10.00% | |
Maximum [Member] | ||
Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ||
Percentage shareholding of class B considered as per class B Protection clause | 10.00% | |
Class A [Member] | ||
Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ||
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 |
Class B [Member] | ||
Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ||
Common stock dividends declared each quarter (in dollars per share) | $ 0.07 | $ 0.07 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details) $ in Thousands | Aug. 27, 2018USD ($) | Aug. 27, 2018CNY (¥) | Jul. 09, 2018CNY (¥) | Dec. 31, 2018USD ($)Defendant | Dec. 31, 2018EUR (€)Defendant | Dec. 31, 2018CNY (¥)Defendant | Dec. 31, 2017USD ($) | Dec. 31, 2015Subsidiary |
Future minimum lease payments for operating leases [Abstract] | ||||||||
2,019 | $ 7,363 | |||||||
2,020 | 6,017 | |||||||
2,021 | 4,967 | |||||||
2,022 | 3,338 | |||||||
2,023 | 1,194 | |||||||
Thereafter | 442 | |||||||
Total future minimum lease payments for operating leases | 23,321 | |||||||
Rent expense for leases | 8,000 | $ 8,200 | ||||||
Other commitments [Abstract] | ||||||||
Outstanding purchase orders related to raw materials | 58,900 | 45,400 | ||||||
Outstanding purchase orders related to capital expenditures | 5,200 | $ 3,000 | ||||||
Dongguan Transpower [Member] | ||||||||
Loss Contingency, Estimate [Abstract] | ||||||||
Damages received with incurred interest | $ 3,200 | ¥ 20,430,203 | ||||||
Arezzo Revenue Agency [Member] | ||||||||
Loss Contingency, Estimate [Abstract] | ||||||||
Estimated liability | $ 12,000 | |||||||
Setec [Member] | ||||||||
Loss Contingency, Estimate [Abstract] | ||||||||
Number of subsidiaries named in the lawsuit | Subsidiary | 3 | |||||||
Setec [Member] | Dongguan Transpower [Member] | ||||||||
Loss Contingency, Estimate [Abstract] | ||||||||
Amount paid in exchange for perpetual, worldwide royalty-free license to patent-in-suit | € | € 75,000 | |||||||
DG Yu Shing Industrial Development Company Limited [Member] | Dongguan Transpower [Member] | ||||||||
Loss Contingency, Estimate [Abstract] | ||||||||
Number of defendants | Defendant | 3 | 3 | 3 | |||||
Damages sought | $ 3,200 | |||||||
Damages awarded | ¥ | ¥ 20,133,174.10 | |||||||
Jinmei Entities [Member] | ||||||||
Loss Contingency, Estimate [Abstract] | ||||||||
Damages received with incurred interest | ¥ | ¥ 20,133,174 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE LOSS, Components of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Accumulated other comprehensive loss [Abstract] | ||
Foreign currency translation adjustment | $ (22,635) | $ (16,537) |
Unrealized holding gain on available-for-sale securities, net of taxes of $0 and $85 as of December 31, 2018 and 2017 | 12 | 145 |
Unfunded SERP liability, net of taxes of ($680) and ($1,635) as of December 31, 2018 and 2017 | (2,215) | (3,233) |
Accumulated other comprehensive loss | (24,838) | (19,625) |
Accumulated other comprehensive loss, tax [Abstract] | ||
Unrealized holding gains on available-for-sale securities, tax | 0 | 85 |
Change in unfunded SERP liability, tax | $ (680) | $ (1,635) |
ACCUMULATED OTHER COMPREHENSI_4
ACCUMULATED OTHER COMPREHENSIVE LOSS, Changes in Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Changes in Accumulated Other Comprehensive (Loss) Income by Component [Roll Forward] | ||||
Balance | $ 157,960 | $ 158,434 | ||
Other comprehensive income (loss) before reclassifications | (5,382) | 11,427 | ||
Amounts reclassified from accumulated other comprehensive income (loss) | 169 | 245 | ||
Net current period other comprehensive income (loss) | (5,213) | 11,672 | $ 0 | |
Balance | 176,470 | 157,960 | 158,434 | |
Accumulated Other Comprehensive Income (Loss) [Member] | ||||
Changes in Accumulated Other Comprehensive (Loss) Income by Component [Roll Forward] | ||||
Balance | (19,625) | (31,297) | ||
Balance | (24,838) | (19,625) | (31,297) | |
Foreign Currency Translation Adjustment [Member] | ||||
Changes in Accumulated Other Comprehensive (Loss) Income by Component [Roll Forward] | ||||
Balance | (16,537) | (28,976) | ||
Other comprehensive income (loss) before reclassifications | (6,098) | 12,439 | ||
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | 0 | ||
Net current period other comprehensive income (loss) | (6,098) | 12,439 | ||
Balance | (22,635) | (16,537) | (28,976) | |
Unrealized Holding Gains on Available-for-Sale Securities [Member] | ||||
Changes in Accumulated Other Comprehensive (Loss) Income by Component [Roll Forward] | ||||
Balance | 145 | 424 | ||
Other comprehensive income (loss) before reclassifications | 37 | (279) | ||
Amounts reclassified from accumulated other comprehensive income (loss) | (170) | 0 | ||
Net current period other comprehensive income (loss) | (133) | (279) | ||
Balance | 12 | 145 | 424 | |
Unfunded SERP Liability [Member] | ||||
Changes in Accumulated Other Comprehensive (Loss) Income by Component [Roll Forward] | ||||
Balance | (3,233) | (2,745) | ||
Other comprehensive income (loss) before reclassifications | 679 | (733) | ||
Amounts reclassified from accumulated other comprehensive income (loss) | [1] | 339 | 245 | |
Net current period other comprehensive income (loss) | 1,018 | (488) | ||
Balance | $ (2,215) | $ (3,233) | $ (2,745) | |
[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 | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2018 | |
Related Party Transaction [Abstract] | |||
Gain from divestiture of business | $ 0.5 | ||
Power Solutions [Member] | |||
Related Party Transaction [Abstract] | |||
Minority interest ownership percentage | 49.00% | ||
People's Republic of China Joint Venture [Member] | |||
Related Party Transaction [Abstract] | |||
Inventory purchase payment from joint venture | $ 0 | ||
Extinguishment of debt | $ 0.5 |