Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | Apr. 30, 2019 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Entity Registrant Name | LCI INDUSTRIES | |
Entity Central Index Key | 0000763744 | |
Trading Symbol | LCII | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Common Stock, Shares Outstanding | 25,014,667 |
Condensed Consolidated Statemen
Condensed Consolidated Statements Of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Income Statement [Abstract] | ||
Net sales | $ 592,172 | $ 650,492 |
Cost of sales | 459,578 | 509,759 |
Gross profit | 132,594 | 140,733 |
Selling, general and administrative expenses | 84,839 | 80,913 |
Operating profit | 47,755 | 59,820 |
Interest expense, net | 2,507 | 1,101 |
Income before income taxes | 45,248 | 58,719 |
Provision for income taxes | 10,882 | 11,383 |
Net income | $ 34,366 | $ 47,336 |
Net income per common share: | ||
Basic (in usd per share) | $ 1.38 | $ 1.88 |
Diluted (in usd per share) | $ 1.38 | $ 1.86 |
Weighted average common shares outstanding: | ||
Basic (in shares) | 24,914 | 25,149 |
Diluted (in shares) | 24,929 | 25,465 |
Condensed Consolidated Statem_2
Condensed Consolidated Statement Of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 34,366 | $ 47,336 |
Other comprehensive (loss) income: | ||
Net foreign currency translation adjustment | (1,175) | 1,110 |
Unrealized loss on fair value of derivative instruments | (153) | |
Total comprehensive income | $ 33,038 | $ 48,446 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Current assets | ||
Cash and cash equivalents | $ 14,317,000 | $ 14,928,000 |
Accounts receivable, net of allowances of $2,451 and $1,895 at March 31, 2019 and December 31, 2018, respectively | 179,417,000 | 121,812,000 |
Inventories, net | 324,522,000 | 340,615,000 |
Prepaid expenses and other current assets | 34,840,000 | 49,296,000 |
Total current assets | 553,096,000 | 526,651,000 |
Fixed assets, net | 335,049,000 | 322,876,000 |
Goodwill | 178,336,000 | 180,168,000 |
Other intangible assets, net | 171,267,000 | 176,342,000 |
Operating lease right-of-use assets | 65,373,000 | 0 |
Deferred taxes | 8,393,000 | 10,948,000 |
Other assets | 31,037,000 | 26,908,000 |
Total assets | 1,342,551,000 | 1,243,893,000 |
Current liabilities | ||
Accounts payable, trade | 89,805,000 | 78,354,000 |
Current portion of operating lease obligations | 14,801,000 | 0 |
Accrued expenses and other current liabilities | 110,605,000 | 99,228,000 |
Total current liabilities | 215,211,000 | 177,582,000 |
Long-term indebtedness | 286,311,000 | 293,528,000 |
Operating lease obligations | 53,455,000 | 0 |
Other long-term liabilities | 65,895,000 | 66,528,000 |
Total liabilities | 620,872,000 | 537,638,000 |
Stockholders’ equity | ||
Common stock, par value $.01 per share | 281,000 | 280,000 |
Paid-in capital | 200,934,000 | 203,246,000 |
Retained earnings | 582,559,000 | 563,496,000 |
Accumulated other comprehensive income | (3,933,000) | (2,605,000) |
Stockholders’ equity before treasury stock | 779,841,000 | 764,417,000 |
Treasury stock, at cost | (58,162,000) | (58,162,000) |
Total stockholders’ equity | 721,679,000 | 706,255,000 |
Total liabilities and stockholders’ equity | $ 1,342,551,000 | $ 1,243,893,000 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowances | $ 2,451 | $ 1,895 |
Common stock, par value | $ 0.01 | $ 0.01 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements Of Cash Flows - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Cash flows from operating activities: | ||
Net income | $ 34,366,000 | $ 47,336,000 |
Adjustments to reconcile net income to cash flows provided by operating activities: | ||
Depreciation and amortization | 18,449,000 | 15,275,000 |
Stock-based compensation expense | 3,733,000 | 5,543,000 |
Other non-cash items | 611,000 | (1,127,000) |
Changes in assets and liabilities, net of acquisitions of businesses: | ||
Accounts receivable, net | (57,753,000) | (71,073,000) |
Inventories, net | 16,052,000 | (17,232,000) |
Prepaid expenses and other assets | 10,268,000 | (3,185,000) |
Accounts payable, trade | 11,581,000 | 8,114,000 |
Accrued expenses and other liabilities | 15,278,000 | 11,246,000 |
Net cash flows provided by operating activities | 52,585,000 | (5,103,000) |
Cash flows from investing activities: | ||
Capital expenditures | (24,442,000) | (26,004,000) |
Acquisitions of businesses, net of cash acquired | 0 | (138,570,000) |
Proceeds from note receivable | 0 | 155,000 |
Other investing activities | 61,000 | (35,000) |
Net cash flows used in investing activities | (24,381,000) | (164,454,000) |
Cash flows from financing activities: | ||
Exercise of stock-based awards, net of shares tendered for payment of taxes | (6,348,000) | (14,085,000) |
Proceeds from line of credit borrowings | 175,660,000 | 474,000,000 |
Repayments under line of credit borrowings | (182,720,000) | (297,000,000) |
Payment of dividends | 14,999,000 | 13,858,000 |
Other financing activities | (157,000) | (556,000) |
Net cash flows provided by (used in) financing activities | (28,564,000) | 148,501,000 |
Effect of exchange rate changes on cash and cash equivalents | (251,000) | 0 |
Net decrease in cash and cash equivalents | (611,000) | (21,056,000) |
Cash and cash equivalents at beginning of period | 14,928,000 | 26,049,000 |
Cash and cash equivalents at end of period | 14,317,000 | 4,993,000 |
Supplemental disclosure of cash flow information: | ||
Cash paid during the period for interest | 2,394,000 | 1,012,000 |
Cash paid during the period for income taxes, net of refunds | 59,000 | (11,000) |
Purchase of property and equipment in accrued expenses | $ 1,202,000 | $ 3,711,000 |
Condensed Consolidated Statem_4
Condensed Consolidated Statement Of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income | Treasury Stock |
Beginning balance at Dec. 31, 2017 | $ 652,745 | $ 277 | $ 203,990 | $ 475,506 | $ 2,439 | $ (29,467) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 47,336 | 47,336 | ||||
Issuance of shares of common stock pursuant to stock-based awards, net of shares tendered for payment of taxes | (14,085) | 2 | (14,087) | |||
Stock-based compensation expense | 5,543 | 5,543 | ||||
Other comprehensive income (loss) | 1,110 | |||||
Cash dividends | (13,858) | (13,858) | ||||
Dividend equivalents on stock-based awards | 319 | (319) | ||||
Ending balance at Mar. 31, 2018 | 678,791 | 279 | 195,765 | 508,665 | 3,549 | (29,467) |
Beginning balance at Dec. 31, 2018 | 706,255 | 280 | 203,246 | 563,496 | (2,605) | (58,162) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 34,366 | 34,366 | ||||
Issuance of shares of common stock pursuant to stock-based awards, net of shares tendered for payment of taxes | (6,348) | 1 | (6,349) | |||
Stock-based compensation expense | 3,733 | 3,733 | ||||
Other comprehensive income (loss) | (1,328) | |||||
Cash dividends | (14,999) | (14,999) | ||||
Dividend equivalents on stock-based awards | 304 | (304) | ||||
Ending balance at Mar. 31, 2019 | $ 721,679 | $ 281 | $ 200,934 | $ 582,559 | $ (3,933) | $ (58,162) |
Condensed Consolidated Statem_5
Condensed Consolidated Statement Of Stockholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Statement of Stockholders' Equity [Abstract] | ||
Issuance of common stock (in shares) | 137,040 | 223,768 |
Cash dividend (in usd per share) | $ 0.60 | $ 0.55 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis Of Presentation | BASIS OF PRESENTATION The Condensed Consolidated Financial Statements include the accounts of LCI Industries and its wholly-owned subsidiaries (“LCII” and collectively with its subsidiaries, the “Company”). LCII has no unconsolidated subsidiaries. LCII, through its wholly-owned subsidiary, Lippert Components, Inc. and its subsidiaries (collectively, “Lippert Components” or “LCI”), supplies, domestically and internationally, a broad array of engineered components for the leading original equipment manufacturers (“OEMs”) in the recreation and industrial product markets, consisting of recreational vehicles (“RVs”) and adjacent industries including buses; trailers used to haul boats, livestock, equipment and other cargo; trucks; boats; trains; manufactured homes; and modular housing. The Company also supplies engineered components to the related aftermarkets of these industries, primarily by selling to retail dealers, wholesale distributors and service centers. At March 31, 2019, the Company operated over 65 manufacturing and distribution facilities located throughout the United States and in Canada, Ireland, Italy and the United Kingdom. Most industries where the Company sells products or where its products are used historically have been seasonal and are generally at the highest levels when the weather is moderate. Accordingly, the Company’s sales and profits have generally been the highest in the second quarter and lowest in the fourth quarter. However, because of fluctuations in dealer inventories, the impact of international, national and regional economic conditions and consumer confidence on retail sales of RVs and other products for which the Company sells its components, the timing of dealer orders, and the impact of severe weather conditions on the timing of industry-wide shipments from time to time, current and future seasonal industry trends may be different than in prior years. Additionally, sales of certain engineered components to the aftermarket channels of these industries tend to be counter-seasonal. The Company is not aware of any significant events, except as disclosed in the Notes to Condensed Consolidated Financial Statements, which occurred subsequent to the balance sheet date but prior to the filing of this report that would have a material impact on the Condensed Consolidated Financial Statements. In the opinion of management, the information furnished in this Form 10-Q reflects all adjustments necessary for a fair statement of the financial position and results of operations for the interim periods presented. The Condensed Consolidated Financial Statements have been prepared in accordance with the instructions to Form 10-Q, and therefore do not include some information necessary to conform to annual reporting requirements. Results for interim periods should not be considered indicative of results for the full year. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires the Company to make estimates and judgments that affect the reported amounts of assets, liabilities, net sales and expenses, and related disclosure of contingent assets and liabilities. On an ongoing basis, the Company evaluates its estimates, including, but not limited to, those related to product returns, sales and purchase rebates, accounts receivable, inventories, goodwill and other intangible assets, net assets of acquired businesses, income taxes, warranty and product recall obligations, self-insurance obligations, operating lease right-of-use assets and obligations, asset retirement obligations, long-lived assets, post-retirement benefits, stock-based compensation, segment allocations, contingent consideration, environmental liabilities, contingencies and litigation. The Company bases its estimates on historical experience, other available information and various other assumptions 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 not readily apparent from other resources. Actual results and events could differ significantly from management estimates. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The Condensed Consolidated Financial Statements presented herein have been prepared by the Company in accordance with the accounting policies described in its December 31, 2018 Annual Report on Form 10-K and should be read in conjunction with the Notes to Consolidated Financial Statements which appear in that report. All significant intercompany balances and transactions have been eliminated. Recent Accounting Pronouncements Recently issued accounting pronouncements not yet adopted In January 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2017-04, Simplifying the Test for Goodwill Impairment, which amends Accounting Standards Codification (“ASC”) 350, Intangibles - Goodwill and Other. This ASU simplifies how an entity is required to test goodwill for impairment by eliminating step 2 from the goodwill impairment test. Step 2 measures goodwill impairment loss by comparing the implied fair value of a reporting unit’s goodwill with the carrying amount of that goodwill. This ASU is effective for interim and annual reporting periods, beginning after December 15, 2019, and early adoption is permitted. The Company will adopt this guidance in the first quarter of 2020 and does not expect the adoption of this ASU to have a material impact on the Company’s consolidated financial statements. In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which changes the methodology for measuring credit losses on financial instruments and the timing of when such losses are recorded. This ASU is effective for interim and annual reporting periods, beginning after December 15, 2019, and early adoption is permitted. The Company will adopt this guidance in the first quarter of 2020 and is currently assessing the impact of this ASU on its consolidated financial statements. Recently adopted accounting pronouncements In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) , which requires, in most instances, a lessee to recognize on its balance sheet a liability to make lease payments (the lease liability) and also a right-of-use asset representing its right to use the underlying asset for the lease term. Leases will be classified as finance or operating, with classification affecting the pattern and classification of expense recognition in the income statement. The Company adopted Topic 842 on January 1, 2019, using the cumulative-effect adjustment transition method, which applies the new standard at the effective date without adjusting the comparative periods presented. The Company elected the package of practical expedients permitted under the transition guidance, which allowed the carryforward of historical lease classification, the assessment of whether a contract is or contains a lease, and initial direct costs for any leases that existed prior to adoption of the new standard. The Company also elected to keep leases with an initial term of 12 months or less off its Condensed Consolidated Balance Sheet and recognize the associated lease payments in its Condensed Consolidated Statements of Income on a straight-line basis over the lease term. The adoption of Topic 842 resulted in the recognition of right-of-use assets of $66.4 million and operating lease obligations of $69.0 million at January 1, 2019. The adoption did not result in a cumulative effect adjustment to beginning retained earnings and is not expected to materially impact the Company’s Consolidated Statements of Income or Cash Flows. See Note 8 of the Notes to Condensed Consolidated Financial Statements for expanded disclosures required under Topic 842. |
Acquisitions, Goodwill And Othe
Acquisitions, Goodwill And Other Intangible Assets | 3 Months Ended |
Mar. 31, 2019 | |
Acquisitions, Goodwill And Other Intangible Assets [Abstract] | |
Goodwill And Other Intangible Assets | ACQUISITIONS, GOODWILL AND OTHER INTANGIBLE ASSETS Smoker Craft Furniture In November 2018, the Company acquired the business and certain assets of the furniture manufacturing operation of Smoker Craft Inc., a leading pontoon, aluminum fishing, and fiberglass boat manufacturer located in New Paris, Indiana. The purchase price was $28.1 million paid at closing. The results of the acquired business have been included primarily in the Company’s OEM Segment and in the Consolidated Statements of Income since the acquisition date. The Company is validating account balances and finalizing the valuation for the acquisition. The acquisition of this business was preliminarily recorded on the acquisition date as follows (in thousands) : Cash consideration $ 28,091 Customer relationship and other identifiable intangible assets $ 16,730 Net tangible assets 1,357 Total fair value of net assets acquired $ 18,087 Goodwill (tax deductible) $ 10,004 The customer relationship intangible asset is being amortized over its estimated useful life of 15 years. The consideration given was greater than the fair value of the net assets acquired, resulting in goodwill, because the Company anticipates the attainment of synergies and an increase in the markets for the acquired products. ST.LA. S.r.l. In June 2018, the Company acquired 100 percent of the equity interests of ST.LA. S.r.l., a manufacturer of bed lifts and other RV components for the European caravan market, headquartered in Pontedera, Italy. The purchase price was $14.8 million, net of cash acquired, paid at closing, and is subject to potential post-closing adjustments related to net working capital. The results of the acquired business have been included primarily in the Company’s OEM Segment and in the Consolidated Statements of Income since the acquisition date. The Company is validating account balances and finalizing the valuation for the acquisition. The acquisition of this business was preliminarily recorded on the acquisition date as follows (in thousands) : Cash consideration, net of cash acquired $ 14,845 Customer relationships and other identifiable intangible assets $ 7,000 Net tangible assets 351 Total fair value of net assets acquired $ 7,351 Goodwill (not tax deductible) $ 7,494 The customer relationships intangible asset is being amortized over its estimated useful life of 15 years. The consideration given was greater than the fair value of the net assets acquired, resulting in goodwill, because the Company anticipates the attainment of synergies and an increase in the markets for the acquired products. Goodwill Goodwill by reportable segment was as follows: (In thousands) OEM Segment Aftermarket Segment Total Net balance – December 31, 2018 $ 160,257 $ 19,911 $ 180,168 Other (1,732) (100) (1,832) Net balance – March 31, 2019 $ 158,525 $ 19,811 $ 178,336 Goodwill represents the excess of the total consideration given in an acquisition of a business over the fair value of the net tangible and identifiable intangible assets acquired. Goodwill is not amortized, but instead is tested at the reporting unit level for impairment annually in November, or more frequently if certain circumstances indicate a possible impairment may exist. Any change in the goodwill amounts resulting from foreign currency translations and purchase accounting adjustments are presented as “Other” in the above table. Other Intangible Assets Other intangible assets consisted of the following at March 31, 2019: (In thousands) Gross Accumulated Net Estimated Useful Customer relationships $ 192,853 $ 58,682 $ 134,171 6 to 16 Patents 58,730 41,350 17,380 3 to 19 Trade names (finite life) 10,832 5,847 4,985 3 to 15 Trade names (indefinite life) 7,600 — 7,600 Indefinite Non-compete agreements 6,864 4,580 2,284 3 to 6 Other 309 149 160 2 to 12 Purchased research and development 4,687 — 4,687 Indefinite Other intangible assets $ 281,875 $ 110,608 $ 171,267 Other intangible assets consisted of the following at December 31, 2018: (In thousands) Gross Accumulated Net Estimated Useful Customer relationships $ 191,919 $ 54,889 $ 137,030 6 to 16 Patents 58,787 40,079 18,708 3 to 19 Trade names (finite life) 10,885 5,507 5,378 3 to 15 Trade names (indefinite life) 7,600 — 7,600 Indefinite Non-compete agreements 6,919 4,148 2,771 3 to 6 Other 309 141 168 2 to 12 Purchased research and development 4,687 — 4,687 Indefinite Other intangible assets $ 281,106 $ 104,764 $ 176,342 |
Acquisitions | ACQUISITIONS, GOODWILL AND OTHER INTANGIBLE ASSETS Smoker Craft Furniture In November 2018, the Company acquired the business and certain assets of the furniture manufacturing operation of Smoker Craft Inc., a leading pontoon, aluminum fishing, and fiberglass boat manufacturer located in New Paris, Indiana. The purchase price was $28.1 million paid at closing. The results of the acquired business have been included primarily in the Company’s OEM Segment and in the Consolidated Statements of Income since the acquisition date. The Company is validating account balances and finalizing the valuation for the acquisition. The acquisition of this business was preliminarily recorded on the acquisition date as follows (in thousands) : Cash consideration $ 28,091 Customer relationship and other identifiable intangible assets $ 16,730 Net tangible assets 1,357 Total fair value of net assets acquired $ 18,087 Goodwill (tax deductible) $ 10,004 The customer relationship intangible asset is being amortized over its estimated useful life of 15 years. The consideration given was greater than the fair value of the net assets acquired, resulting in goodwill, because the Company anticipates the attainment of synergies and an increase in the markets for the acquired products. ST.LA. S.r.l. In June 2018, the Company acquired 100 percent of the equity interests of ST.LA. S.r.l., a manufacturer of bed lifts and other RV components for the European caravan market, headquartered in Pontedera, Italy. The purchase price was $14.8 million, net of cash acquired, paid at closing, and is subject to potential post-closing adjustments related to net working capital. The results of the acquired business have been included primarily in the Company’s OEM Segment and in the Consolidated Statements of Income since the acquisition date. The Company is validating account balances and finalizing the valuation for the acquisition. The acquisition of this business was preliminarily recorded on the acquisition date as follows (in thousands) : Cash consideration, net of cash acquired $ 14,845 Customer relationships and other identifiable intangible assets $ 7,000 Net tangible assets 351 Total fair value of net assets acquired $ 7,351 Goodwill (not tax deductible) $ 7,494 The customer relationships intangible asset is being amortized over its estimated useful life of 15 years. The consideration given was greater than the fair value of the net assets acquired, resulting in goodwill, because the Company anticipates the attainment of synergies and an increase in the markets for the acquired products. Goodwill Goodwill by reportable segment was as follows: (In thousands) OEM Segment Aftermarket Segment Total Net balance – December 31, 2018 $ 160,257 $ 19,911 $ 180,168 Other (1,732) (100) (1,832) Net balance – March 31, 2019 $ 158,525 $ 19,811 $ 178,336 Goodwill represents the excess of the total consideration given in an acquisition of a business over the fair value of the net tangible and identifiable intangible assets acquired. Goodwill is not amortized, but instead is tested at the reporting unit level for impairment annually in November, or more frequently if certain circumstances indicate a possible impairment may exist. Any change in the goodwill amounts resulting from foreign currency translations and purchase accounting adjustments are presented as “Other” in the above table. Other Intangible Assets Other intangible assets consisted of the following at March 31, 2019: (In thousands) Gross Accumulated Net Estimated Useful Customer relationships $ 192,853 $ 58,682 $ 134,171 6 to 16 Patents 58,730 41,350 17,380 3 to 19 Trade names (finite life) 10,832 5,847 4,985 3 to 15 Trade names (indefinite life) 7,600 — 7,600 Indefinite Non-compete agreements 6,864 4,580 2,284 3 to 6 Other 309 149 160 2 to 12 Purchased research and development 4,687 — 4,687 Indefinite Other intangible assets $ 281,875 $ 110,608 $ 171,267 Other intangible assets consisted of the following at December 31, 2018: (In thousands) Gross Accumulated Net Estimated Useful Customer relationships $ 191,919 $ 54,889 $ 137,030 6 to 16 Patents 58,787 40,079 18,708 3 to 19 Trade names (finite life) 10,885 5,507 5,378 3 to 15 Trade names (indefinite life) 7,600 — 7,600 Indefinite Non-compete agreements 6,919 4,148 2,771 3 to 6 Other 309 141 168 2 to 12 Purchased research and development 4,687 — 4,687 Indefinite Other intangible assets $ 281,106 $ 104,764 $ 176,342 |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | INVENTORIES Inventories, valued at the lower of cost (first-in, first-out (FIFO) method) or market, consisted of the following at: March 31, December 31, (In thousands) 2019 2018 Raw materials $ 270,119 $ 284,467 Work in process 11,597 12,291 Finished goods 42,806 43,857 Inventories, net $ 324,522 $ 340,615 |
Fixed Assets
Fixed Assets | 3 Months Ended |
Mar. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Fixed Assets | FIXED ASSETS Fixed assets consisted of the following at: March 31, December 31, (In thousands) 2019 2018 Fixed assets, at cost $ 584,039 $ 559,234 Less accumulated depreciation and amortization 248,990 236,358 Fixed assets, net $ 335,049 $ 322,876 |
Accrued Expenses And Other Curr
Accrued Expenses And Other Current Liabilities | 3 Months Ended |
Mar. 31, 2019 | |
Payables and Accruals [Abstract] | |
Accrued Expenses And Other Current Liabilities | ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES Accrued expenses and other current liabilities consisted of the following at: March 31, December 31, (In thousands) 2019 2018 Employee compensation and benefits $ 31,298 $ 33,835 Current portion of accrued warranty 34,862 32,180 Other 44,445 33,213 Accrued expenses and other current liabilities $ 110,605 $ 99,228 Estimated costs related to product warranties are accrued at the time products are sold. In estimating its future warranty obligations, the Company considers various factors, including the Company’s (i) historical warranty costs, (ii) current trends, (iii) product mix, and (iv) sales. The following table provides a reconciliation of the activity related to the Company’s accrued warranty, including both the current and long-term portions, for the three months ended March 31, 2019: (In thousands) Balance at beginning of period $ 46,530 Provision for warranty expense 9,616 Warranty costs paid (6,734) Balance at end of period 49,412 Less long-term portion 14,550 Current portion of accrued warranty at end of period $ 34,862 |
Long-Term Indebtedness
Long-Term Indebtedness | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Long-Term Indebtedness | LONG-TERM INDEBTEDNESS Long-term indebtedness consisted of the following at: March 31, December 31, (In thousands) 2019 2018 Revolving Credit Facility $ 233,000 $ 240,060 Shelf-Loan Facility 50,000 50,000 Other 4,083 4,425 Unamortized deferred financing fees (339) (361) 286,744 294,124 Less current portion (433) (596) Long-term indebtedness $ 286,311 $ 293,528 On December 14, 2018, the Company refinanced its credit agreement with JPMorgan Chase, N.A., Wells Fargo Bank, N.A., Bank of America, N.A., and other bank lenders (the “Amended Credit Agreement”). The Amended Credit Agreement amended and restated an existing credit agreement dated April 27, 2016 and now expires on December 14, 2023. The Amended Credit Agreement increased the revolving credit facility from $325.0 million to $600.0 million, and permits the Company to borrow up to $250.0 million in approved foreign currencies, including Australian dollars, Canadian dollars, pounds sterling and euros. The maximum borrowings under the credit facility may be further increased by $300.0 million in additional revolving loans or incremental term loans, subject to the consent of the lenders providing such incremental facilities and certain other conditions. Interest on borrowings under the revolving credit facility is designated from time to time by the Company as either (i) the Alternate Base Rate (defined in the Amended Credit Agreement as the greatest of (a) the Prime Rate of JPMorgan Chase Bank, N.A., (b) the federal funds effective rate plus 0.5 percent and (c) the Adjusted LIBO Rate (as defined in the Amended Credit Agreement) for a one month interest period plus 1.0 percent), plus additional interest ranging from 0.0 percent to 0.625 percent (0.0 percent at March 31, 2019) depending on the Company’s total net leverage ratio, or (ii) the Adjusted LIBO Rate for a period equal to one, two, three, six or twelve months (with the consent of each lender) as selected by the Company, plus additional interest ranging from 0.875 percent to 1.625 percent (0.875 percent at March 31, 2019) depending on the Company’s total net leverage ratio. At March 31, 2019, the Company had $2.6 million in issued, but undrawn, standby letters of credit under the revolving credit facility. Availability under the Company’s revolving credit facility was $364.4 million at March 31, 2019. On February 24, 2014, the Company entered into a $150.0 million shelf-loan facility (as amended, the “Shelf-Loan Facility”) with PGIM, Inc. (formerly Prudential Investment Management, Inc.) and its affiliates (“Prudential”). On March 20, 2015, the Company issued $50.0 million of Senior Promissory Notes (“Series A Notes”) to Prudential for a term of five The Shelf-Loan Facility provides for Prudential to consider purchasing, at the Company’s request, in one or a series of transactions, Senior Promissory Notes of the Company in the aggregate principal amount of up to $150.0 million (excluding the Company’s Series B Notes already outstanding). Prudential has no obligation to purchase the Senior Promissory Notes. Interest payable on the Senior Promissory Notes will be at rates determined by Prudential within five business days after the Company issues a request to Prudential. Borrowings under both the Amended Credit Agreement and the Shelf-Loan Facility are secured on a pari-passu basis by first priority liens on the capital stock or other equity interests of the Company’s direct and indirect subsidiaries (including up to 65 percent of the equity interest of certain “controlled foreign corporations”). Pursuant to the Amended Credit Agreement and Shelf-Loan Facility, the Company shall not permit its net leverage ratio to exceed certain limits, shall maintain minimum debt service coverage ratio and must meet certain other financial requirements. At March 31, 2019, the Company was in compliance with all such requirements, and expects to remain in compliance for the next twelve months. Availability under the Amended Credit Agreement and the Shelf-Loan Facility is subject to a maximum net leverage ratio covenant which limits the amount of consolidated outstanding indebtedness on a trailing twelve-month EBITDA, as defined. This limitation did not impact the Company’s borrowing availability at March 31, 2019. The remaining availability under these facilities was $514.4 million at March 31, 2019. The Company believes the availability under the Amended Credit Agreement and Shelf-Loan Facility is adequate to finance the Company’s anticipated cash requirements for the next twelve months. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Leases | LEASES The Company leases certain manufacturing and warehouse facilities, administrative office space, semi-tractors, trailers, forklifts, and other equipment through operating leases with unrelated third parties. The operating leases have remaining terms of up to 12 years and some leases include options to purchase, terminate or extend for one or more years. The options are included in the lease term when it is reasonably certain that the option will be exercised. Leases with an initial term of 12 months or less are recognized in lease expense on a straight-line basis over the lease term and not recorded on the Condensed Consolidated Balance Sheet. The Company uses its incremental borrowing rate based on information available at lease inception in determining the present value of the lease payments. The Company applies a portfolio approach for determining the incremental borrowing rate based on applicable lease terms and the current economic environment. Certain of the Company’s lease arrangements contain lease components (such as minimum rent payments) and non-lease components (such as common-area or other maintenance costs and taxes). The Company generally accounts for each component separately based on the estimated standalone price of each component. Some of the Company’s lease arrangements include rental payments that are adjusted periodically for an index rate. These leases are initially measured using the projected payments in effect at the inception of the lease. Certain of the Company’s leased semi-tractors, trailers and forklifts include variable costs for usage or mileage. Such variable costs are expensed as incurred and included in the variable lease cost item noted in the table below. The Company’s lease agreements do not contain any significant residual value guarantees or restrictive covenants. The components of lease cost for the three months ended March 31, 2019 were as follows: (in thousands) Operating lease cost $4,909 Short-term lease cost 798 Variable lease cost 406 Total lease cost $6,113 Future minimum lease payments under operating leases as of March 31, 2019 were as follows: (in thousands) Year Ending December 31, 2019 (excluding the three months ended March 31, 2019) $ 18,002 2020 14,632 2021 11,597 2022 8,354 2023 6,428 Thereafter 23,855 Total future minimum lease payments (a) 82,868 Less: Interest (14,612) Present value of operating lease liabilities $ 68,256 ( a ) Refer to the Company’s Annual Report on Form 10-K for disclosure of future minimum lease payments at December 31, 2018 under ASC Topic 840, the accounting standard applicable to leases prior to the adoption of Topic 842. At March 31, 2019, the Company’s operating leases had a weighted-average remaining lease term of 6.7 years and a weighted-average discount rate of 5.7 percent. Cash Flows The initial right-of-use assets of $66.4 million were recognized as non-cash asset additions upon adoption of Topic 842. Additional right-of use assets of $3.1 million were recognized as non-cash asset additions that resulted from new operating lease obligations during the three months ended March 31, 2019. Cash paid for amounts included in the present value of operating lease obligations and included in cash flows from operations was $5.0 million for the three months ended March 31, 2019. Finance Leases The Company has various leases classified as finance leases, which are included in fixed assets, net and long-term indebtedness on the Condensed Consolidated Balance Sheets. These leases are not material to the Condensed Consolidated Financial Statements as of March 31, 2019. Lessor The Company has various lease arrangements to lease office space and other real estate under which the Company is the lessor. These leases are classified as operating leases and income associated with these leases is not materialThe operating leases have remaining terms of up to 12 years and some leases include options to purchase, terminate or extend for one or more years.The operating leases have remaining terms of up to 12 years and some leases include options to purchase, terminate or extend for one or more years.. |
Commitments And Contingencies
Commitments And Contingencies | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments And Contingencies | COMMITMENTS AND CONTINGENCIES Contingent Consideration In connection with several business acquisitions, if certain sales targets for the acquired products are achieved, the Company would pay additional cash consideration. The Company has recorded a liability for the fair value of this contingent consideration at March 31, 2019, based on the present value of the expected future cash flows using a market participant’s weighted average cost of capital of 12.1 percent. As required, the liability for this contingent consideration is measured at fair value quarterly, considering actual sales of the acquired products, updated sales projections and the updated market participant weighted average cost of capital. Depending upon the weighted average costs of capital and future sales of the products which are subject to contingent consideration, the Company could record adjustments in future periods. The following table provides a reconciliation of the Company’s contingent consideration liability for the three months ended March 31, 2019: (In thousands) Balance at beginning of period $ 7,302 Payments (1) Accretion (a) 201 Net foreign currency translation adjustment (82) Balance at end of the period (b) 7,420 Less current portion in accrued expenses and other current liabilities (39) Total long-term portion in other long-term liabilities $ 7,381 (a) Recorded in selling, general and administrative expenses in the Condensed Consolidated Statements of Income. (b) Amounts represent the fair value of estimated remaining payments. The total estimated remaining undiscounted payments as of March 31, 2019 were $9.1 million. The liability for contingent consideration expires at various dates through September 2029. Certain of the contingent consideration arrangements are subject to a maximum payment amount, while the remaining arrangements have no maximum contingent consideration. Furrion Distribution and Supply Agreement In July 2015, the Company entered into a six In connection with this agreement, the Company entered into minimum purchase obligations (“MPOs”), which Furrion and the Company agreed to review after the first year on an annual basis and adjust as necessary based upon current economic and industry conditions, the development and customer acceptance of new Furrion products, competition and other factors which impact demand for Furrion products. Subject to agreed upon revisions to the MPOs, Furrion has the right to either terminate the distribution agreement with six months’ notice or remove exclusivity from the Company if the Company misses an MPO in any given year by more than ten percent, after taking into account excess purchases from the previous year. If exclusivity is withdrawn, the Company at its election may terminate the distribution agreement with six months’ notice. Upon termination of the agreement, Furrion has agreed to purchase from the Company any non-obsolete stocks of Furrion products at the cost paid by the Company. Product Recalls From time to time, the Company cooperates with and assists its customers on their product recalls and inquiries, and occasionally receives inquiries directly from the National Highway Traffic Safety Administration regarding reported incidents involving the Company’s products. As a result, the Company has incurred expenses associated with product recalls from time to time, and may incur expenditures for future investigations or product recalls. Environmental The Company’s operations are subject to certain Federal, state and local regulatory requirements relating to the use, storage, discharge and disposal of hazardous materials used during the manufacturing processes. Although the Company believes its operations have been consistent with prevailing industry standards, and are in substantial compliance with applicable environmental laws and regulations, one or more of the Company’s current or former operating sites, or adjacent sites owned by third-parties, have been affected, and may in the future be affected, by releases of hazardous materials. As a result, the Company may incur expenditures for future investigation and remediation of these sites, including in conjunction with voluntary remediation programs or third-party claims. Litigation In the normal course of business, the Company is subject to proceedings, lawsuits, regulatory agency inquiries and other claims. All such matters are subject to uncertainties and outcomes that are not predictable with assurance. While these matters could materially affect operating results when resolved in future periods, management believes that, after final disposition, including anticipated insurance recoveries in certain cases, any monetary liability or financial impact to the Company beyond that provided in the Condensed Consolidated Balance Sheet as of March 31, 2019, would not be material to the Company’s financial position or annual results of operations. |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2019 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | STOCKHOLDERS’ EQUITY The following table summarizes information about shares of the Company’s common stock at: March 31, December 31, (In thousands) 2019 2018 Common stock authorized 75,000 75,000 Common stock issued 28,085 27,948 Treasury stock 3,087 3,087 The following reconciliation details the denominator used in the computation of basic and diluted earnings per share at March 31, 2019: (In thousands) Weighted average shares outstanding for basic earnings per share 24,914 Common stock equivalents pertaining to stock-based awards 15 Weighted average shares outstanding for diluted earnings per share 24,929 Equity instruments excluded from diluted net earnings per share calculation as the effect would have been anti-dilutive 122 The table below summarizes the regular quarterly dividends declared and paid during the periods ended March 31, 2019 and December 31, 2018: (In thousands, except per share data) Per Share Record Date Payment Date Total Paid First Quarter 2018 $ 0.55 03/16/18 03/29/18 $ 13,858 Second Quarter 2018 0.60 06/04/18 06/15/18 15,127 Third Quarter 2018 0.60 08/31/18 09/14/18 15,129 Fourth Quarter 2018 0.60 11/26/18 12/07/18 15,156 Total 2018 $ 2.35 $ 59,270 First Quarter 2019 $ 0.60 03/08/19 03/22/19 $ 14,999 Deferred and Restricted Stock Units The LCI Industries 2018 Omnibus Incentive Plan (“the 2018 Plan”) provides for the grant or issuance of stock units, including those that have deferral periods, such as deferred stock units (“DSUs”), those with time-based vesting provisions, such as restricted stock units (“RSUs”), to directors, employees and other eligible persons. Recipients of DSUs and RSUs are entitled to receive shares at the end of a specified vesting or deferral period. Holders of DSUs and RSUs receive dividend equivalents based on dividends granted to holders of the common stock, which dividend equivalents are payable in additional DSUs and RSUs, and are subject to the same vesting criteria as the original grant. DSUs vest (i) ratably over the service period, (ii) at a specified future date, or (iii) for certain officers, based on achievement of specified performance conditions. RSUs vest (i) ratably over the service period or (ii) at a specified future date. In addition, DSUs are issued in lieu of certain cash compensation. Transactions in DSUs and RSUs under the LCI Industries Equity Award and Incentive Plan, as Amended and Restated (“the 2011 Plan”) or the 2018 Plan, as applicable, are summarized as follows: Number of Shares Weighted Average Price Outstanding at December 31, 2018 264,406 $ 83.84 Granted 232,287 80.40 Dividend equivalents 3,046 73.70 Forfeited (3,615) 93.74 Vested (111,548) 81.32 Outstanding at March 31, 2019 384,576 $ 81.42 Stock Awards and Performance Stock Units The 2011 Plan provides for stock awards and the 2018 Plan provides for performance stock units (“PSUs”) that vest at a specific future date based on achievement of specified performance conditions. Transactions in performance-based stock awards and PSUs under the 2011 Plan or the 2018 Plan, as applicable, are summarized as follows: Number of Shares Stock Price Outstanding at December 31, 2018 187,368 $ 91.39 Granted 48,995 78.11 Dividend equivalents 1,090 73.70 Forfeited (8,459) 106.10 Vested (102,434) 77.93 Outstanding at March 31, 2019 126,560 $ 96.21 |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | FAIR VALUE MEASUREMENTS Recurring The following table presents the Company’s assets and liabilities measured at fair value on a recurring basis at: March 31, 2019 December 31, 2018 (In thousands) Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Assets Derivative assets $ 80 $ — $ 80 $ — $ — $ — $ — $ — Liabilities Contingent consideration $ 7,420 $ — $ — 7,420 $ 7,302 $ — $ — $ 7,302 Derivative liabilities 1,125 — 1,125 — 1,108 — 1,108 — Contingent Consideration Related to Acquisitions Liabilities for contingent consideration related to acquisitions were estimated at fair value using management’s projections for long-term sales forecasts, including assumptions regarding market share gains and future industry-specific economic and market conditions, and a market participant’s weighted average cost of capital. Over the next six years, the Company’s long-term sales growth forecasts for products subject to contingent consideration arrangements average approximately 13 percent per year. For further information on the inputs used in determining the fair value, and a roll-forward of the contingent consideration liability, see Note 9 of the Notes to Condensed Consolidated Financial Statements. Changes in either of the inputs in isolation would result in a change in the fair value measurement. A change in the assumptions used for sales forecasts would result in a directionally similar change in the fair value liability, while a change in the weighted average cost of capital would result in a directionally opposite change in the fair value liability. If there is an increase in the fair value liability, the Company would record a charge to selling, general and administrative expenses, and if there is a decrease in the fair value liability, the Company would record a benefit in selling, general and administrative expenses. Derivative Instruments The Company’s objectives in using commodity derivatives are to add stability to expense and to manage its exposure to certain commodity price movements. To accomplish this objective, the Company uses commodity swaps as part of its commodity risk management strategy. Commodity swaps designated as cash flow hedges involve fixing the price on a fixed volume of a commodity on specified dates. The commodity swaps are typically cash settled for their fair value at or close to their settlement dates. At March 31, 2019, the Company had six commodity swap derivative instruments for a total of 52.6 million pounds of steel used to hedge its commodity price risk on a portion of the exposure to movements associated with steel costs at an average steel price of $0.37 per pound. These derivatives expire at various dates through April 2020. At December 31, 2018, the Company had five commodity swap derivative instruments for a total of 34.4 million pounds of steel at an average steel price of $0.39 per pound. These derivatives are designated and qualify as cash flow hedges of commodity price risk; therefore, the gain or loss on the derivative is recorded in accumulated other comprehensive income (loss) and subsequently reclassified in the period during which the hedged transactions affects earnings within the same income statement line item as the earnings effect of the hedged transaction. These derivative instruments were valued at fair value using a market approach based on the quoted market prices of similar instruments at the end of the reporting period. At March 31, 2019, the $0.1 million corresponding asset was recorded in prepaid expenses and other current assets, the $1.1 million corresponding liability was recorded in accrued expenses and other current liabilities ($1.1 million) as reflected in the Condensed Consolidated Balance Sheets. At December 31, 2018, the $1.1 million corresponding liability was recorded in accrued expenses and other current liabilities ($0.9 million) and other long-term liabilities ($0.2 million) as reflected in the Consolidated Balance Sheets. |
Segment Reporting
Segment Reporting | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment Reporting | SEGMENT REPORTING The Company has two reportable segments, the OEM Segment and the Aftermarket Segment. Intersegment sales are insignificant. The OEM Segment, which accounted for 90 percent and 92 percent of consolidated net sales for the three months ended March 31, 2019 and 2018, respectively, manufactures or distributes a broad array of engineered components for the leading OEMs in the recreation and industrial product markets, consisting of RVs and adjacent industries, including buses; trailers used to haul boats, livestock, equipment and other cargo; trucks; pontoon boats; trains; manufactured homes; and modular housing. Approximately 60 percent of the Company’s OEM Segment net sales for the three months ended March 31, 2019 were of components for travel trailer and fifth-wheel RVs. The Aftermarket Segment, which accounted for ten percent and eight percent of consolidated net sales for the three months ended March 31, 2019 and 2018, respectively, supplies engineered components to the related aftermarket channels of the recreation and industrial product markets, primarily to retail dealers, wholesale distributors and service centers. The Aftermarket Segment also includes the sale of replacement glass and awnings to fulfill insurance claims. Decisions concerning the allocation of the Company’s resources are made by the Company’s chief operating decision maker (“CODM”), with oversight by the Board of Directors. The CODM evaluates the performance of each segment based upon segment operating profit or loss, generally defined as income or loss before interest and income taxes. Decisions concerning the allocation of resources are also based on each segment’s utilization of assets. Management of debt is a corporate function. The accounting policies of the OEM and Aftermarket Segments are the same as those described in Note 2 of the Notes to Consolidated Financial Statements of the Company’s Annual Report on Form 10-K for the year ended December 31, 2018. The following table presents the Company’s revenues disaggregated by segment and geography based on the billing address of the Company’s customers: Three Months Ended March 31, 2019 Three Months Ended March 31, 2018 (In thousands) U.S. (a) Int’l (b) Total U.S. (a) Int’l (b) Total OEM Segment: RV OEMs: Travel trailers and fifth-wheels $ 313,367 $ 3,504 $ 316,871 $ 403,742 $ 1,215 $ 404,957 Motorhomes 31,921 13,079 45,000 43,406 9,509 52,915 Adjacent Industries OEMs 156,736 13,173 169,909 133,408 8,899 142,307 Total OEM Segment net sales 502,024 29,756 531,780 580,556 19,623 600,179 Aftermarket Segment: Total Aftermarket Segment net sales 56,532 3,860 60,392 47,346 2,967 50,313 Total net sales $ 558,556 $ 33,616 $ 592,172 $ 627,902 $ 22,590 $ 650,492 (a) Net sales to customers in the United States of America (b) Net sales to customers in countries domiciled outside of the United States of America The following table presents the Company’s operating profit by segment: Three Months Ended (In thousands) 2019 2018 Operating profit: OEM Segment $ 40,408 $ 53,940 Aftermarket Segment 7,347 5,880 Total operating profit $ 47,755 $ 59,820 The following table presents the Company’s revenue disaggregated by product: Three Months Ended (In thousands) 2019 2018 OEM Segment: Chassis, chassis parts and slide-out mechanisms $ 204,383 $ 252,702 Windows and doors 151,919 149,520 Furniture and mattresses 91,357 105,518 Axles and suspension solutions 32,235 33,605 Other 51,886 58,834 Total OEM Segment net sales 531,780 600,179 Total Aftermarket Segment net sales 60,392 50,313 Total net sales $ 592,172 $ 650,492 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires the Company to make estimates and judgments that affect the reported amounts of assets, liabilities, net sales and expenses, and related disclosure of contingent assets and liabilities. On an ongoing basis, the Company evaluates its estimates, including, but not limited to, those related to product returns, sales and purchase rebates, accounts receivable, inventories, goodwill and other intangible assets, net assets of acquired businesses, income taxes, warranty and product recall obligations, self-insurance obligations, operating lease right-of-use assets and obligations, asset retirement obligations, long-lived assets, post-retirement benefits, stock-based compensation, segment allocations, contingent consideration, environmental liabilities, contingencies and litigation. The Company bases its estimates on historical experience, other available information and various other assumptions 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 not readily apparent from other resources. Actual results and events could differ significantly from management estimates. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Recently issued accounting pronouncements not yet adopted In January 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2017-04, Simplifying the Test for Goodwill Impairment, which amends Accounting Standards Codification (“ASC”) 350, Intangibles - Goodwill and Other. This ASU simplifies how an entity is required to test goodwill for impairment by eliminating step 2 from the goodwill impairment test. Step 2 measures goodwill impairment loss by comparing the implied fair value of a reporting unit’s goodwill with the carrying amount of that goodwill. This ASU is effective for interim and annual reporting periods, beginning after December 15, 2019, and early adoption is permitted. The Company will adopt this guidance in the first quarter of 2020 and does not expect the adoption of this ASU to have a material impact on the Company’s consolidated financial statements. In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which changes the methodology for measuring credit losses on financial instruments and the timing of when such losses are recorded. This ASU is effective for interim and annual reporting periods, beginning after December 15, 2019, and early adoption is permitted. The Company will adopt this guidance in the first quarter of 2020 and is currently assessing the impact of this ASU on its consolidated financial statements. Recently adopted accounting pronouncements In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) , which requires, in most instances, a lessee to recognize on its balance sheet a liability to make lease payments (the lease liability) and also a right-of-use asset representing its right to use the underlying asset for the lease term. Leases will be classified as finance or operating, with classification affecting the pattern and classification of expense recognition in the income statement. The Company adopted Topic 842 on January 1, 2019, using the cumulative-effect adjustment transition method, which applies the new standard at the effective date without adjusting the comparative periods presented. The Company elected the package of practical expedients permitted under the transition guidance, which allowed the carryforward of historical lease classification, the assessment of whether a contract is or contains a lease, and initial direct costs for any leases that existed prior to adoption of the new standard. The Company also elected to keep leases with an initial term of 12 months or less off its Condensed Consolidated Balance Sheet and recognize the associated lease payments in its Condensed Consolidated Statements of Income on a straight-line basis over the lease term. The adoption of Topic 842 resulted in the recognition of right-of-use assets of $66.4 million and operating lease obligations of $69.0 million at January 1, 2019. The adoption did not result in a cumulative effect adjustment to beginning retained earnings and is not expected to materially impact the Company’s Consolidated Statements of Income or Cash Flows. See Note 8 of the Notes to Condensed Consolidated Financial Statements for expanded disclosures required under Topic 842. |
Acquisitions, Goodwill And Ot_2
Acquisitions, Goodwill And Other Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Acquisitions, Goodwill And Other Intangible Assets [Abstract] | |
Schedule of Goodwill | Goodwill by reportable segment was as follows: (In thousands) OEM Segment Aftermarket Segment Total Net balance – December 31, 2018 $ 160,257 $ 19,911 $ 180,168 Other (1,732) (100) (1,832) Net balance – March 31, 2019 $ 158,525 $ 19,811 $ 178,336 |
Schedule of Other Intangible Assets | Other intangible assets consisted of the following at March 31, 2019: (In thousands) Gross Accumulated Net Estimated Useful Customer relationships $ 192,853 $ 58,682 $ 134,171 6 to 16 Patents 58,730 41,350 17,380 3 to 19 Trade names (finite life) 10,832 5,847 4,985 3 to 15 Trade names (indefinite life) 7,600 — 7,600 Indefinite Non-compete agreements 6,864 4,580 2,284 3 to 6 Other 309 149 160 2 to 12 Purchased research and development 4,687 — 4,687 Indefinite Other intangible assets $ 281,875 $ 110,608 $ 171,267 Other intangible assets consisted of the following at December 31, 2018: (In thousands) Gross Accumulated Net Estimated Useful Customer relationships $ 191,919 $ 54,889 $ 137,030 6 to 16 Patents 58,787 40,079 18,708 3 to 19 Trade names (finite life) 10,885 5,507 5,378 3 to 15 Trade names (indefinite life) 7,600 — 7,600 Indefinite Non-compete agreements 6,919 4,148 2,771 3 to 6 Other 309 141 168 2 to 12 Purchased research and development 4,687 — 4,687 Indefinite Other intangible assets $ 281,106 $ 104,764 $ 176,342 |
Smoker Craft Inc. | |
Business Acquisition [Line Items] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The acquisition of this business was preliminarily recorded on the acquisition date as follows (in thousands) : Cash consideration $ 28,091 Customer relationship and other identifiable intangible assets $ 16,730 Net tangible assets 1,357 Total fair value of net assets acquired $ 18,087 Goodwill (tax deductible) $ 10,004 |
STLA | |
Business Acquisition [Line Items] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The acquisition of this business was preliminarily recorded on the acquisition date as follows (in thousands) : Cash consideration, net of cash acquired $ 14,845 Customer relationships and other identifiable intangible assets $ 7,000 Net tangible assets 351 Total fair value of net assets acquired $ 7,351 Goodwill (not tax deductible) $ 7,494 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule Of Inventories | Inventories, valued at the lower of cost (first-in, first-out (FIFO) method) or market, consisted of the following at: March 31, December 31, (In thousands) 2019 2018 Raw materials $ 270,119 $ 284,467 Work in process 11,597 12,291 Finished goods 42,806 43,857 Inventories, net $ 324,522 $ 340,615 |
Fixed Assets (Tables)
Fixed Assets (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Schedule Of Fixed Assets | Fixed assets consisted of the following at: March 31, December 31, (In thousands) 2019 2018 Fixed assets, at cost $ 584,039 $ 559,234 Less accumulated depreciation and amortization 248,990 236,358 Fixed assets, net $ 335,049 $ 322,876 |
Accrued Expenses And Other Cu_2
Accrued Expenses And Other Current Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Payables and Accruals [Abstract] | |
Schedule Of Accrued Expenses And Other Current Liabilities | Accrued expenses and other current liabilities consisted of the following at: March 31, December 31, (In thousands) 2019 2018 Employee compensation and benefits $ 31,298 $ 33,835 Current portion of accrued warranty 34,862 32,180 Other 44,445 33,213 Accrued expenses and other current liabilities $ 110,605 $ 99,228 |
Schedule Of Reconciliation Of The Activity Related To Accrued Warranty | The following table provides a reconciliation of the activity related to the Company’s accrued warranty, including both the current and long-term portions, for the three months ended March 31, 2019: (In thousands) Balance at beginning of period $ 46,530 Provision for warranty expense 9,616 Warranty costs paid (6,734) Balance at end of period 49,412 Less long-term portion 14,550 Current portion of accrued warranty at end of period $ 34,862 |
Long-Term Indebtedness (Tables)
Long-Term Indebtedness (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt | Long-term indebtedness consisted of the following at: March 31, December 31, (In thousands) 2019 2018 Revolving Credit Facility $ 233,000 $ 240,060 Shelf-Loan Facility 50,000 50,000 Other 4,083 4,425 Unamortized deferred financing fees (339) (361) 286,744 294,124 Less current portion (433) (596) Long-term indebtedness $ 286,311 $ 293,528 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Components of Lease Cost | The components of lease cost for the three months ended March 31, 2019 were as follows: (in thousands) Operating lease cost $4,909 Short-term lease cost 798 Variable lease cost 406 Total lease cost $6,113 |
Future Minimum Lease Payments | Future minimum lease payments under operating leases as of March 31, 2019 were as follows: (in thousands) Year Ending December 31, 2019 (excluding the three months ended March 31, 2019) $ 18,002 2020 14,632 2021 11,597 2022 8,354 2023 6,428 Thereafter 23,855 Total future minimum lease payments (a) 82,868 Less: Interest (14,612) Present value of operating lease liabilities $ 68,256 ( a ) Refer to the Company’s Annual Report on Form 10-K for disclosure of future minimum lease payments at December 31, 2018 under ASC Topic 840, the accounting standard applicable to leases prior to the adoption of Topic 842. |
Commitments And Contingencies (
Commitments And Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Reconciliation Of Contingent Consideration Liability | The following table provides a reconciliation of the Company’s contingent consideration liability for the three months ended March 31, 2019: (In thousands) Balance at beginning of period $ 7,302 Payments (1) Accretion (a) 201 Net foreign currency translation adjustment (82) Balance at end of the period (b) 7,420 Less current portion in accrued expenses and other current liabilities (39) Total long-term portion in other long-term liabilities $ 7,381 (a) Recorded in selling, general and administrative expenses in the Condensed Consolidated Statements of Income. (b) Amounts represent the fair value of estimated remaining payments. The total estimated remaining undiscounted payments as of March 31, 2019 were $9.1 million. The liability for contingent consideration expires at various dates through September 2029. Certain of the contingent consideration arrangements are subject to a maximum payment amount, while the remaining arrangements have no maximum contingent consideration. |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Stockholders' Equity Note [Abstract] | |
Summary Of Common Stock Information | The following table summarizes information about shares of the Company’s common stock at: March 31, December 31, (In thousands) 2019 2018 Common stock authorized 75,000 75,000 Common stock issued 28,085 27,948 Treasury stock 3,087 3,087 |
Schedule Of Computation Of Basic And Diluted Earnings Per Share | The following reconciliation details the denominator used in the computation of basic and diluted earnings per share at March 31, 2019: (In thousands) Weighted average shares outstanding for basic earnings per share 24,914 Common stock equivalents pertaining to stock-based awards 15 Weighted average shares outstanding for diluted earnings per share 24,929 Equity instruments excluded from diluted net earnings per share calculation as the effect would have been anti-dilutive 122 |
Schedule of Dividends Declared | The table below summarizes the regular quarterly dividends declared and paid during the periods ended March 31, 2019 and December 31, 2018: (In thousands, except per share data) Per Share Record Date Payment Date Total Paid First Quarter 2018 $ 0.55 03/16/18 03/29/18 $ 13,858 Second Quarter 2018 0.60 06/04/18 06/15/18 15,127 Third Quarter 2018 0.60 08/31/18 09/14/18 15,129 Fourth Quarter 2018 0.60 11/26/18 12/07/18 15,156 Total 2018 $ 2.35 $ 59,270 First Quarter 2019 $ 0.60 03/08/19 03/22/19 $ 14,999 |
Deferred And Restricted Stock Units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock Awards and Units Activity | Transactions in DSUs and RSUs under the LCI Industries Equity Award and Incentive Plan, as Amended and Restated (“the 2011 Plan”) or the 2018 Plan, as applicable, are summarized as follows: Number of Shares Weighted Average Price Outstanding at December 31, 2018 264,406 $ 83.84 Granted 232,287 80.40 Dividend equivalents 3,046 73.70 Forfeited (3,615) 93.74 Vested (111,548) 81.32 Outstanding at March 31, 2019 384,576 $ 81.42 |
Stock Awards and Performance Stock Units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock Awards and Units Activity | Transactions in performance-based stock awards and PSUs under the 2011 Plan or the 2018 Plan, as applicable, are summarized as follows: Number of Shares Stock Price Outstanding at December 31, 2018 187,368 $ 91.39 Granted 48,995 78.11 Dividend equivalents 1,090 73.70 Forfeited (8,459) 106.10 Vested (102,434) 77.93 Outstanding at March 31, 2019 126,560 $ 96.21 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Assets And Liabilities Measured At Fair Value On A Recurring Basis | The following table presents the Company’s assets and liabilities measured at fair value on a recurring basis at: March 31, 2019 December 31, 2018 (In thousands) Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Assets Derivative assets $ 80 $ — $ 80 $ — $ — $ — $ — $ — Liabilities Contingent consideration $ 7,420 $ — $ — 7,420 $ 7,302 $ — $ — $ 7,302 Derivative liabilities 1,125 — 1,125 — 1,108 — 1,108 — |
Segment Reporting (Tables)
Segment Reporting (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Disaggregation of Revenue | The following table presents the Company’s revenues disaggregated by segment and geography based on the billing address of the Company’s customers: Three Months Ended March 31, 2019 Three Months Ended March 31, 2018 (In thousands) U.S. (a) Int’l (b) Total U.S. (a) Int’l (b) Total OEM Segment: RV OEMs: Travel trailers and fifth-wheels $ 313,367 $ 3,504 $ 316,871 $ 403,742 $ 1,215 $ 404,957 Motorhomes 31,921 13,079 45,000 43,406 9,509 52,915 Adjacent Industries OEMs 156,736 13,173 169,909 133,408 8,899 142,307 Total OEM Segment net sales 502,024 29,756 531,780 580,556 19,623 600,179 Aftermarket Segment: Total Aftermarket Segment net sales 56,532 3,860 60,392 47,346 2,967 50,313 Total net sales $ 558,556 $ 33,616 $ 592,172 $ 627,902 $ 22,590 $ 650,492 (a) Net sales to customers in the United States of America (b) Net sales to customers in countries domiciled outside of the United States of America |
Schedule Of Information Relating To Segments | The following table presents the Company’s operating profit by segment: Three Months Ended (In thousands) 2019 2018 Operating profit: OEM Segment $ 40,408 $ 53,940 Aftermarket Segment 7,347 5,880 Total operating profit $ 47,755 $ 59,820 |
Revenue Disaggregated by Product | The following table presents the Company’s revenue disaggregated by product: Three Months Ended (In thousands) 2019 2018 OEM Segment: Chassis, chassis parts and slide-out mechanisms $ 204,383 $ 252,702 Windows and doors 151,919 149,520 Furniture and mattresses 91,357 105,518 Axles and suspension solutions 32,235 33,605 Other 51,886 58,834 Total OEM Segment net sales 531,780 600,179 Total Aftermarket Segment net sales 60,392 50,313 Total net sales $ 592,172 $ 650,492 |
Basis of Presentation (Details)
Basis of Presentation (Details) | Mar. 31, 2019 |
Manufacturing Facility | |
Property, Plant and Equipment | |
Manufacturing Facilities | 65 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) - USD ($) | Mar. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating lease right-of-use assets | $ 65,373,000 | $ 66,400,000 | $ 0 |
Operating lease liabilities | $ 68,256 | ||
Accounting Standards Update 2016-02 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating lease right-of-use assets | 66,400,000 | ||
Operating lease liabilities | $ 69,000,000 |
Acquisitions, Goodwill And Ot_3
Acquisitions, Goodwill And Other Intangible Assets (Narrative) (Details) - USD ($) $ in Thousands | 1 Months Ended | |
Nov. 30, 2018 | Jun. 30, 2018 | |
Smoker Craft Inc. | ||
Business Acquisition [Line Items] | ||
Total purchase price | $ 28,100 | |
Cash consideration | $ 28,091 | |
Smoker Craft Inc. | Customer Relationships | ||
Business Acquisition [Line Items] | ||
Acquired intangible assets useful life | 15 years | |
STLA | ||
Business Acquisition [Line Items] | ||
Percentage of interests acquired | 100.00% | |
Cash consideration | $ 14,800 | |
STLA | Customer Relationships | ||
Business Acquisition [Line Items] | ||
Acquired intangible assets useful life | 15 years |
Acquisitions, Goodwill And Ot_4
Acquisitions, Goodwill And Other Intangible Assets (Schedule Of Business Acquisitions) (Details) - USD ($) $ in Thousands | 1 Months Ended | |||
Nov. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2019 | Dec. 31, 2018 | |
Business Acquisition [Line Items] | ||||
Goodwill | $ 178,336 | $ 180,168 | ||
Smoker Craft Inc. | ||||
Business Acquisition [Line Items] | ||||
Cash consideration | $ 28,091 | |||
Identifiable intangible assets | 16,730 | |||
Net tangible assets | 1,357 | |||
Total fair value of net assets acquired | 18,087 | |||
Goodwill | $ 10,004 | |||
STLA | ||||
Business Acquisition [Line Items] | ||||
Cash consideration | $ 14,800 | |||
Identifiable intangible assets | 7,000 | |||
Net tangible assets | 351 | |||
Total fair value of net assets acquired | 7,351 | |||
Goodwill | $ 7,494 |
Acquisitions, Goodwill And Ot_5
Acquisitions, Goodwill And Other Intangible Assets (Schedule Of Goodwill By Reportable Segment) (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Segment Reporting Information | |
Net balance – beginning of period | $ 180,168 |
Other | (1,832) |
Net balance – end of period | 178,336 |
OEM Segment | |
Segment Reporting Information | |
Net balance – beginning of period | 160,257 |
Other | (1,732) |
Net balance – end of period | 158,525 |
Aftermarket Segment | |
Segment Reporting Information | |
Net balance – beginning of period | 19,911 |
Other | (100) |
Net balance – end of period | $ 19,811 |
Acquisitions, Goodwill And Ot_6
Acquisitions, Goodwill And Other Intangible Assets (Schedule Of Other Intangible Assets) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Acquired Intangible Assets | ||
Accumulated Amortization | $ 110,608 | $ 104,764 |
Intangible Assets, Gross (Excluding Goodwill) | 281,875 | 281,106 |
Intangible Assets, Net (Excluding Goodwill) | 171,267 | 176,342 |
Tradenames | ||
Acquired Intangible Assets | ||
Indefinite-Lived Intangible Assets | 7,600 | 7,600 |
Purchased research and development | ||
Acquired Intangible Assets | ||
Indefinite-Lived Intangible Assets | 4,687 | 4,687 |
Customer Relationships | ||
Acquired Intangible Assets | ||
Finite-Lived Intangible Assets, Gross | 192,853 | 191,919 |
Accumulated Amortization | 58,682 | 54,889 |
Net Balance | $ 134,171 | $ 137,030 |
Customer Relationships | Minimum | ||
Acquired Intangible Assets | ||
Estimated Useful Life in Years | 6 years | 6 years |
Customer Relationships | Maximum | ||
Acquired Intangible Assets | ||
Estimated Useful Life in Years | 16 years | 16 years |
Patents | ||
Acquired Intangible Assets | ||
Finite-Lived Intangible Assets, Gross | $ 58,730 | $ 58,787 |
Accumulated Amortization | 41,350 | 40,079 |
Net Balance | $ 17,380 | $ 18,708 |
Patents | Minimum | ||
Acquired Intangible Assets | ||
Estimated Useful Life in Years | 3 years | 3 years |
Patents | Maximum | ||
Acquired Intangible Assets | ||
Estimated Useful Life in Years | 19 years | 19 years |
Tradenames | ||
Acquired Intangible Assets | ||
Finite-Lived Intangible Assets, Gross | $ 10,832 | $ 10,885 |
Accumulated Amortization | 5,847 | 5,507 |
Net Balance | $ 4,985 | $ 5,378 |
Tradenames | Minimum | ||
Acquired Intangible Assets | ||
Estimated Useful Life in Years | 3 years | 3 years |
Tradenames | Maximum | ||
Acquired Intangible Assets | ||
Estimated Useful Life in Years | 15 years | 15 years |
Non-compete Agreements | ||
Acquired Intangible Assets | ||
Finite-Lived Intangible Assets, Gross | $ 6,864 | $ 6,919 |
Accumulated Amortization | 4,580 | 4,148 |
Net Balance | $ 2,284 | $ 2,771 |
Non-compete Agreements | Minimum | ||
Acquired Intangible Assets | ||
Estimated Useful Life in Years | 3 years | 3 years |
Non-compete Agreements | Maximum | ||
Acquired Intangible Assets | ||
Estimated Useful Life in Years | 6 years | 6 years |
Other | ||
Acquired Intangible Assets | ||
Finite-Lived Intangible Assets, Gross | $ 309 | $ 309 |
Accumulated Amortization | 149 | 141 |
Net Balance | $ 160 | $ 168 |
Other | Minimum | ||
Acquired Intangible Assets | ||
Estimated Useful Life in Years | 2 years | 2 years |
Other | Maximum | ||
Acquired Intangible Assets | ||
Estimated Useful Life in Years | 12 years | 12 years |
Inventories (Schedule Of Invent
Inventories (Schedule Of Inventories) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 270,119 | $ 284,467 |
Work in process | 11,597 | 12,291 |
Finished goods | 42,806 | 43,857 |
Inventories, net | $ 324,522 | $ 340,615 |
Fixed Assets (Schedule Of Fixed
Fixed Assets (Schedule Of Fixed Assets) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Property, Plant and Equipment [Abstract] | ||
Fixed assets, at cost | $ 584,039 | $ 559,234 |
Less accumulated depreciation and amortization | 248,990 | 236,358 |
Fixed assets, net | $ 335,049 | $ 322,876 |
Accrued Expenses And Other Cu_3
Accrued Expenses And Other Current Liabilities (Schedule Of Accrued Expenses And Other Current Liabilities) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Payables and Accruals [Abstract] | ||
Employee compensation and benefits | $ 31,298 | $ 33,835 |
Current portion of accrued warranty | 34,862 | 32,180 |
Other | 44,445 | 33,213 |
Accrued expenses and other current liabilities | $ 110,605 | $ 99,228 |
Accrued Expenses And Other Cu_4
Accrued Expenses And Other Current Liabilities (Schedule Of Reconciliation Of The Activity Related To Accrued Warranty) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | |
Movement in Standard and Extended Product Warranty Accrual, Increase (Decrease) [Roll Forward] | ||
Balance at beginning of period | $ 46,530 | |
Provision for warranty expense | 9,616 | |
Warranty costs paid | (6,734) | |
Balance at end of period | 49,412 | |
Less long-term portion | 14,550 | |
Current portion of accrued warranty | $ 34,862 | $ 32,180 |
Long-Term Indebtedness (Schedul
Long-Term Indebtedness (Schedule of Long-term Debt) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Unamortized deferred financing fees | $ (339) | $ (361) |
Long-term debt | 286,744 | 294,124 |
Less current portion | (433) | (596) |
Long-term debt, excluding current maturities | 286,311 | 293,528 |
Line of Credit | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 233,000 | 240,060 |
Shelf Loan | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 50,000 | 50,000 |
Other | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 4,083 | $ 4,425 |
Long-Term Indebtedness (Narrati
Long-Term Indebtedness (Narrative) (Details) - USD ($) | Mar. 29, 2019 | Dec. 14, 2018 | Apr. 27, 2016 | Mar. 20, 2015 | Feb. 24, 2014 | Mar. 31, 2019 | Dec. 31, 2018 |
Line of Credit Facility | |||||||
Long-term indebtedness | $ 286,311,000 | $ 293,528,000 | |||||
Remaining availability under the facilities | $ 514,400,000 | ||||||
Percentage of equity interests used as security | 65.00% | ||||||
Amended Credit Agreement | |||||||
Line of Credit Facility | |||||||
Maximum borrowings under line of credit | $ 300,000,000 | ||||||
JPMorgan Chase Bank And Wells Fargo Bank | Line of Credit | |||||||
Line of Credit Facility | |||||||
Maximum borrowings under line of credit | $ 325,000,000 | ||||||
Letter Of Credit | $ 2,600,000 | ||||||
Remaining availability under the facilities | $ 364,400,000 | ||||||
JPMorgan Chase Bank And Wells Fargo Bank | Line of Credit | Prime Rate | |||||||
Line of Credit Facility | |||||||
Basis spread on variable rate | 1.00% | ||||||
JPMorgan Chase Bank And Wells Fargo Bank | Line of Credit | Prime Rate | Minimum | |||||||
Line of Credit Facility | |||||||
Basis spread on variable rate | 0.875% | ||||||
Prudential Investment Management Inc | Line of Credit | |||||||
Line of Credit Facility | |||||||
Long-term indebtedness | 250,000,000 | $ 50,000,000 | |||||
Remaining availability under the facilities | $ 150,000,000 | ||||||
Debt term | 3 years | 5 years | |||||
Interest rate during period | 3.80% | 3.35% | |||||
Period after request is issued, by company, for interest payable rate to be determined by Prudential | 5 days | ||||||
JPMorgan Chase Bank, N.A., Wells Fargo Bank, N.A., Bank of America, N.A., and 1st Source Bank | Line of Credit | |||||||
Line of Credit Facility | |||||||
Maximum borrowings under line of credit | $ 600,000,000 | ||||||
Option One | JPMorgan Chase Bank, N.A., Wells Fargo Bank, N.A., Bank of America, N.A., and 1st Source Bank | Line of Credit | LIBOR | Minimum | |||||||
Line of Credit Facility | |||||||
Debt instrument, additional margin interest rate | 0.00% | 0.00% | |||||
Option One | JPMorgan Chase Bank, N.A., Wells Fargo Bank, N.A., Bank of America, N.A., and 1st Source Bank | Line of Credit | LIBOR | Maximum | |||||||
Line of Credit Facility | |||||||
Debt instrument, additional margin interest rate | 0.625% | ||||||
Option One | JPMorgan Chase Bank, N.A., Wells Fargo Bank, N.A., Bank of America, N.A., and 1st Source Bank | Line of Credit | Federal Funds Effective Rate | |||||||
Line of Credit Facility | |||||||
Basis spread on variable rate | 0.50% | ||||||
Option Two | JPMorgan Chase Bank, N.A., Wells Fargo Bank, N.A., Bank of America, N.A., and 1st Source Bank | Line of Credit | LIBOR | Maximum | |||||||
Line of Credit Facility | |||||||
Basis spread on variable rate | 1.625% |
Leases (Narrative) (Details)
Leases (Narrative) (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | |
Leases [Abstract] | |||
Term of contract | 12 years | ||
Weighted average remaining lease term | 6 years 8 months 12 days | ||
Weighted average discount rate | 5.70% | ||
Operating lease right-of-use assets | $ 65,373,000 | $ 66,400,000 | $ 0 |
Additional right-of use assets in exchange of operating lease obligations | 3,100,000 | ||
Cash flows from operations | $ 5,000,000 |
Leases (Components of Lease Cos
Leases (Components of Lease Cost) (Details) | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating lease cost | $ 4,909 |
Short-term lease cost | 798 |
Variable lease cost | 406 |
Total lease cost | $ 6,113 |
Leases (Future Minimum Lease Pa
Leases (Future Minimum Lease Payments) (Details) | Mar. 31, 2019USD ($) |
Leases [Abstract] | |
2019 (excluding the three months ended March 31, 2019) | $ 18,002 |
2020 | 14,632 |
2021 | 11,597 |
2022 | 8,354 |
2023 | 6,428 |
Thereafter | 23,855 |
Total future minimum lease payments | 82,868 |
Less: Interest | (14,612) |
Present value of operating lease liabilities | $ 68,256 |
Commitments And Contingencies_2
Commitments And Contingencies (Narrative) (Details) | 1 Months Ended | |
Jul. 31, 2015 | Mar. 31, 2019 | |
Furrion Limited | ||
Loss Contingencies | ||
Long-term purchase commitment, time period | 6 years | |
Weighted Average Cost of Capital | ||
Loss Contingencies | ||
Weighted average cost of capital | 0.121 |
Commitments And Contingencies_3
Commitments And Contingencies (Reconciliation Of Contingent Consideration Liability) (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Business Combination, Contingent Consideration, Reconciliation of Change in Liability [Roll Forward] | |
Balance at beginning of period | $ 7,302 |
Payments | (1) |
Accretion | 201 |
Net foreign currency translation adjustment | (82) |
Balance at end of the period | 7,420 |
Less current portion in accrued expenses and other current liabilities | (39) |
Total long-term portion in other long-term liabilities | 7,381 |
Contingent consideration, total remaining estimated payments | $ 9,100 |
Stockholders' Equity (Summary O
Stockholders' Equity (Summary Of Common Stock Information) (Details) - shares shares in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Stockholders' Equity Note [Abstract] | ||
Common stock authorized (in shares) | 75,000 | 75,000 |
Common stock issued (in shares) | 28,085 | 27,948 |
Treasury stock (in shares) | 3,087 | 3,087 |
Stockholders' Equity (Schedule
Stockholders' Equity (Schedule Of Computation Of Basic And Diluted Earnings Per Share) (Details) - shares | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Stockholders' Equity Note [Abstract] | ||
Weighted average shares outstanding for basic earnings per share (in shares) | 24,914,000 | 25,149,000 |
Common stock equivalents pertaining to stock options and deferred stock units (in shares) | 15,000 | |
Weighted average shares outstanding for diluted earnings per share (in shares) | 24,929,000 | 25,465,000 |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 122,000 |
Stockholders' Equity (Summary_2
Stockholders' Equity (Summary of Regular Quarterly Dividend) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Cash dividend (in usd per share) | $ 0.60 | $ 0.60 | $ 0.60 | $ 0.60 | $ 0.55 | $ 2.35 |
Payment of dividends | $ 14,999 | $ 13,858 | ||||
Common Stock | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Payment of dividends | $ 14,999 | $ 15,156 | $ 15,129 | $ 15,127 | $ 13,858 | $ 59,270 |
Stockholders' Equity (Stock Awa
Stockholders' Equity (Stock Awards and Units Activity) (Details) | 3 Months Ended |
Mar. 31, 2019$ / sharesshares | |
Deferred And Restricted Stock Units | |
Number of Shares | |
Outstanding at beginning of period (in shares) | shares | 264,406 |
Granted (in shares) | shares | 232,287 |
Dividend equivalents (in shares) | shares | 3,046 |
Forfeited (in shares) | shares | (3,615) |
Vested (in shares) | shares | 111,548 |
Outstanding at end of period (in shares) | shares | 384,576 |
Weighted Average Price | |
Outstanding at beginning of period (in usd per share) | $ / shares | $ 83.84 |
Granted (in usd per share) | $ / shares | 80.40 |
Dividend equivalents (in usd per share) | $ / shares | 73.70 |
Forfeited (in usd per share) | $ / shares | 93.74 |
Vested (in usd per share) | $ / shares | 81.32 |
Outstanding at end of period (in usd per share) | $ / shares | $ 81.42 |
Stock Awards and Performance Stock Units | |
Number of Shares | |
Outstanding at beginning of period (in shares) | shares | 187,368 |
Granted (in shares) | shares | 48,995 |
Dividend equivalents (in shares) | shares | 1,090 |
Forfeited (in shares) | shares | (8,459) |
Vested (in shares) | shares | 102,434 |
Outstanding at end of period (in shares) | shares | 126,560 |
Weighted Average Price | |
Outstanding at beginning of period (in usd per share) | $ / shares | $ 91.39 |
Granted (in usd per share) | $ / shares | 78.11 |
Dividend equivalents (in usd per share) | $ / shares | 73.70 |
Forfeited (in usd per share) | $ / shares | 106.10 |
Vested (in usd per share) | $ / shares | 77.93 |
Outstanding at end of period (in usd per share) | $ / shares | $ 96.21 |
Fair Value Measurements (Assets
Fair Value Measurements (Assets And Liabilities Measured At Fair Value On A Recurring Basis) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 |
Assets | |||
Derivative instruments | $ 80 | $ 0 | |
Liabilities | |||
Contingent consideration | 7,420 | 7,302 | |
Derivative liabilities | 1,125 | $ 1,108 | 1,100 |
Level 1 | |||
Assets | |||
Derivative instruments | 0 | 0 | |
Liabilities | |||
Contingent consideration | 0 | 0 | |
Derivative liabilities | 0 | 0 | |
Level 2 | |||
Assets | |||
Derivative instruments | 80 | 0 | |
Liabilities | |||
Contingent consideration | 0 | 0 | |
Derivative liabilities | 1,125 | 1,108 | |
Level 3 | |||
Assets | |||
Derivative instruments | 0 | 0 | |
Liabilities | |||
Contingent consideration | $ 7,302 | ||
Derivative liabilities | $ 0 | $ 0 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) $ in Thousands, lb in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019USD ($)derivative_instrumentlb$ / lb | Dec. 31, 2018USD ($)derivative_instrumentlb$ / lb | Mar. 31, 2018USD ($) | |
Fair Value Disclosures [Abstract] | |||
Number of years long-term sales growth forecasted over | 6 years | ||
Average long-term sales growth forecast, over next 4 years, percent per year | 13.00% | ||
Derivative, number of instruments held | derivative_instrument | 6 | 5 | |
Underlying, derivative mass | $ / lb | 0.37 | 0.39 | |
Derivative, nonmonetary notional amount, mass | lb | 52.6 | 34.4 | |
Derivative instruments | $ 80 | $ 0 | |
Derivative liability | $ 1,125 | $ 1,108 | 1,100 |
Derivative liability, current | 900 | ||
Derivative liability, noncurrent | $ 200 | $ 100 |
Segment Reporting (Narrative) (
Segment Reporting (Narrative) (Details) - segment | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Segment Reporting Information | ||
Number of reportable segments | 2 | |
Net sales | OEM Segment | ||
Segment Reporting Information | ||
Concentration risk, percentage | 90.00% | 92.00% |
Net sales | Aftermarket Segment | ||
Segment Reporting Information | ||
Concentration risk, percentage | 10.00% | 8.00% |
Product Concentration Risk | Net sales | Travel trailers and fifth-wheels | ||
Segment Reporting Information | ||
Concentration risk, percentage | 60.00% |
Segment Reporting (Disaggregati
Segment Reporting (Disaggregation of Revenue) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 592,172 | $ 650,492 |
OEM Segment | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 531,780 | 600,179 |
Travel trailers and fifth-wheels | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 316,871 | 404,957 |
Motorhomes | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 45,000 | 52,915 |
Adjacent industries OEMs | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 169,909 | 142,307 |
Aftermarket Segment | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 60,392 | 50,313 |
Chassis, chassis parts and slide-out mechanisms | OEM Segment | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 204,383 | 252,702 |
Windows and doors | OEM Segment | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 151,919 | 149,520 |
Furniture and mattresses | OEM Segment | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 91,357 | 105,518 |
Axles and suspension solutions | OEM Segment | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 32,235 | 33,605 |
Other | OEM Segment | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 51,886 | 58,834 |
U.S. | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 558,556 | 627,902 |
U.S. | OEM Segment | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 502,024 | 580,556 |
U.S. | Travel trailers and fifth-wheels | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 313,367 | 403,742 |
U.S. | Motorhomes | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 31,921 | 43,406 |
U.S. | Adjacent industries OEMs | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 156,736 | 133,408 |
U.S. | Aftermarket Segment | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 56,532 | 47,346 |
International | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 33,616 | 22,590 |
International | OEM Segment | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 29,756 | 19,623 |
International | Travel trailers and fifth-wheels | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 3,504 | 1,215 |
International | Motorhomes | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 13,079 | 9,509 |
International | Adjacent industries OEMs | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 13,173 | 8,899 |
International | Aftermarket Segment | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 3,860 | $ 2,967 |
Segment Reporting (Schedule of
Segment Reporting (Schedule of Operating Profit by Segment) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Segment Reporting Information | ||
Operating profit | $ 47,755 | $ 59,820 |
Operating Segments | OEM Segment | ||
Segment Reporting Information | ||
Operating profit | 40,408 | 53,940 |
Operating Segments | Aftermarket Segment | ||
Segment Reporting Information | ||
Operating profit | $ 7,347 | $ 5,880 |