Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 14, 2020 | Jun. 30, 2019 | |
Cover page. | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity Registrant Name | LCI INDUSTRIES | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Central Index Key | 0000763744 | ||
Trading Symbol | LCII | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Common Stock, Shares Outstanding | 25,046,413 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 1,663,932,960 | ||
Entity File Number | 001-13646 | ||
Entity Tax Identification Number | 13-3250533 | ||
Entity Address, Address Line One | 3501 County Road 6 East | ||
Entity Address, City or Town | Elkhart, | ||
Entity Address, State or Province | IN | ||
Entity Address, Postal Zip Code | 46514 | ||
City Area Code | 574 | ||
Local Phone Number | 535-1125 | ||
Title of 12(b) Security | Common Stock, $.01 par value | ||
Security Exchange Name | NYSE | ||
Documents Incorporated by Reference | Portions of the Proxy Statement for the 2020 Annual Meeting of Stockholders to be held on May 21, 2020 are incorporated by reference into Part III of this Annual Report on Form 10-K. |
Consolidated Statements Of Inco
Consolidated Statements Of Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Statement [Abstract] | |||
Net sales | $ 2,371,482 | $ 2,475,807 | $ 2,147,770 |
Cost of sales | 1,832,280 | 1,955,463 | 1,654,656 |
Gross profit | 539,202 | 520,344 | 493,114 |
Selling, general and administrative expenses | 338,992 | 321,556 | 278,833 |
Operating profit | 200,210 | 198,788 | 214,281 |
Interest expense, net | 8,796 | 6,436 | 1,437 |
Income before income taxes | 191,414 | 192,352 | 212,844 |
Provision for income taxes | 44,905 | 43,801 | 79,960 |
Net income | $ 146,509 | $ 148,551 | $ 132,884 |
Net income per common share: | |||
Basic (in usd per share) | $ 5.86 | $ 5.90 | $ 5.31 |
Diluted (in usd per share) | $ 5.84 | $ 5.83 | $ 5.24 |
Weighted average common shares outstanding: | |||
Basic (in shares) | 24,998 | 25,178 | 25,020 |
Diluted (in shares) | 25,093 | 25,463 | 25,375 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income Statement - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 146,509 | $ 148,551 | $ 132,884 |
Other comprehensive (loss) income: | |||
Net foreign currency translation adjustment | 4,262 | (3,936) | 4,237 |
Derivative instrument adjustment | (534) | (1,108) | 0 |
Total comprehensive income | $ 150,237 | $ 143,507 | $ 137,121 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) shares in Thousands, $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets | ||
Cash and cash equivalents | $ 35,359 | $ 14,928 |
Accounts receivable, net of allowances of $1,895 and $1,536 at December 31, 2018 and 2017, respectively | 199,976 | 121,812 |
Inventories, net | 393,607 | 340,615 |
Prepaid expenses and other current assets | 41,849 | 49,296 |
Total current assets | 670,791 | 526,651 |
Fixed assets, net | 366,309 | 322,876 |
Goodwill | 351,114 | 180,168 |
Other intangible assets, net | 341,426 | 176,342 |
Operating lease right-of-use assets | 98,774 | 0 |
Deferred taxes | 0 | 10,948 |
Other assets | 34,181 | 26,908 |
Total assets | 1,862,595 | 1,243,893 |
Current liabilities | ||
Current maturities of long-term indebtedness | 17,883 | 596 |
Accounts payable, trade | 99,262 | 78,354 |
Current portion of operating lease obligations | 21,693 | 0 |
Accrued expenses and other current liabilities | 132,420 | 98,632 |
Total current liabilities | 271,258 | 177,582 |
Long-term indebtedness | 612,906 | 293,528 |
Operating lease obligations | 79,848 | 0 |
Deferred taxes | 35,740 | 8,501 |
Other long-term liabilities | 62,171 | 58,027 |
Total liabilities | 1,061,923 | 537,638 |
Stockholders’ equity | ||
Common stock, par value $.01 per share: authorized 75,000 shares; issued 27,948 shares at December 31, 2018 and 27,674 shares at December 31, 2017 | 281 | 280 |
Paid-in capital | 212,485 | 203,246 |
Retained earnings | 644,945 | 563,496 |
Accumulated other comprehensive (loss) income | 1,123 | (2,605) |
Stockholders’ equity before treasury stock | 858,834 | 764,417 |
Treasury stock, at cost, 3,087 shares at December 31, 2018 and 2,648 shares at December 31, 2017 | (58,162) | (58,162) |
Total stockholders’ equity | 800,672 | 706,255 |
Total liabilities and stockholders’ equity | 1,862,595 | 1,243,893 |
Allowance for Doubtful Accounts Receivable, Current | $ 3,144 | $ 1,895 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, authorized | 75,000 | 75,000 |
Common stock, shares issued | 28,133 | 27,948 |
Treasury stock, shares | 3,087 | 3,087 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Thousands, $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Allowance for Doubtful Accounts Receivable, Current | $ 3,144 | $ 1,895 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, authorized | 75,000 | 75,000 |
Common stock, shares issued | 28,133 | 27,948 |
Treasury stock, shares | 3,087 | 3,087 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities: | |||
Net income | $ 146,509 | $ 148,551 | $ 132,884 |
Adjustments to reconcile net income to cash flows provided by operating activities: | |||
Depreciation and amortization | 75,358 | 67,526 | 54,727 |
Stock-based compensation expense | 16,077 | 14,065 | 20,036 |
Deferred taxes | 3,416 | 13,874 | 6,808 |
Other non-cash items | (1,553) | (13) | 4,371 |
Changes in assets and liabilities, net of acquisitions of businesses: | |||
Accounts receivable, net | (25,452) | (11,352) | (12,601) |
Inventories, net | 57,790 | (34,730) | (78,698) |
Prepaid expenses and other assets | 6,882 | (17,691) | (10,898) |
Accounts payable, trade | (12,189) | (17,335) | 20,727 |
Accrued expenses and other liabilities | 2,687 | (6,287) | 15,346 |
Net cash flows provided by operating activities | 269,525 | 156,608 | 152,702 |
Cash flows from investing activities: | |||
Capital expenditures | (58,202) | (119,827) | (87,221) |
Acquisitions of businesses, net of cash acquired | (447,764) | (184,792) | (60,588) |
Other investing activities | 2,132 | 1,824 | 1,934 |
Net cash flows used in investing activities | (503,834) | (302,795) | (145,875) |
Cash flows from financing activities: | |||
Exercise of stock-based awards, net of shares tendered for payment of taxes | (8,084) | (16,097) | (10,531) |
Proceeds from line of credit borrowings | 655,387 | 1,387,013 | 28,130 |
Repayments under line of credit borrowings | (628,891) | (1,146,953) | (28,130) |
Proceeds from term loan borrowings | 300,000 | 0 | 0 |
Proceeds from other borrowings | 0 | 4,509 | 0 |
Payment of dividends | (63,813) | (59,270) | (51,057) |
Payment of contingent consideration related to acquisitions | (10) | (3,068) | (5,301) |
Repurchases of common stock | 0 | (28,695) | 0 |
Other financing activities | 382 | (2,373) | (59) |
Net cash flows provided by (used in) financing activities | 254,971 | 135,066 | (66,948) |
Effect of exchange rate changes on cash and cash equivalents | (231) | 0 | 0 |
Net increase (decrease) in cash and cash equivalents | 20,431 | (11,121) | (60,121) |
Cash and cash equivalents at beginning of period | 14,928 | 26,049 | 86,170 |
Cash and cash equivalents at end of period | 35,359 | 14,928 | 26,049 |
Supplemental disclosure of cash flow information: | |||
Cash paid during the period for interest | 9,143 | 5,645 | 1,650 |
Cash paid during the period for income taxes, net of refunds | 37,836 | 39,991 | 53,620 |
Purchase of property and equipment in accrued expenses | $ 3,417 | $ 385 | $ 2,640 |
Consolidated Statement Of Stock
Consolidated Statement Of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive (Loss) Income | Treasury Stock |
Beginning Balance at Dec. 31, 2016 | $ 550,269 | $ 274 | $ 185,981 | $ 395,279 | $ (1,798) | $ (29,467) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 132,884 | 132,884 | ||||
Issuance of common stock pursuant to stock-based awards, net of shares tendered for payment of taxes | (10,531) | 3 | (10,534) | |||
Stock-based compensation expense | 20,036 | 20,036 | ||||
Issuance of deferred stock units relating to prior year compensation | 6,907 | 6,907 | ||||
Other comprehensive income (loss) | 4,237 | 4,237 | ||||
Cash dividends | (51,057) | (51,057) | ||||
Dividend equivalents on stock-based awards | 0 | 1,600 | (1,600) | |||
Ending 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 | 148,551 | 148,551 | ||||
Issuance of common stock pursuant to stock-based awards, net of shares tendered for payment of taxes | (16,097) | 3 | (16,100) | |||
Stock-based compensation expense | 14,065 | 14,065 | ||||
Repurchases of common stock | (28,695) | |||||
Other comprehensive income (loss) | (5,044) | (5,044) | ||||
Cash dividends | (59,270) | (59,270) | ||||
Dividend equivalents on stock-based awards | 0 | 1,291 | (1,291) | |||
Ending 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 | 146,509 | 146,509 | ||||
Issuance of common stock pursuant to stock-based awards, net of shares tendered for payment of taxes | (8,084) | 1 | (8,085) | |||
Stock-based compensation expense | 16,077 | 16,077 | ||||
Repurchases of common stock | (28,700) | |||||
Other comprehensive income (loss) | 3,728 | 3,728 | ||||
Cash dividends | (63,813) | (63,813) | ||||
Dividend equivalents on stock-based awards | 0 | 1,247 | (1,247) | |||
Ending Balance at Dec. 31, 2019 | $ 800,672 | $ 281 | $ 212,485 | $ 644,945 | $ 1,123 | $ (58,162) |
Consolidated Statement Of Sto_2
Consolidated Statement Of Stockholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Stockholders' Equity [Abstract] | |||
Issuance of common stock (in shares) | 185,020 | 274,177 | 239,854 |
Issuance of deferred stock units (in shares) | 63,677 | ||
Repurchases of common stock (in shares) | 402,570 | 402,570 | |
Special cash dividend, per share | $ 2.55 | $ 2.35 | $ 2.05 |
Basis of Presentation
Basis of Presentation | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | BASIS OF PRESENTATION The 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 transportation 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 December 31, 2019, the Company operated over 90 manufacturing and distribution facilities located throughout North America and Europe. 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 recreation and transportation 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 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 Consolidated Financial Statements. All significant intercompany balances and transactions have been eliminated. Certain prior year balances have been reclassified to conform to the current year presentation. 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 | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Cash and Cash Equivalents The Company considers all highly liquid investments with a maturity of three months or less at the time of purchase to be cash equivalents. Accounts Receivable Accounts receivable are stated at historical carrying value, net of write-offs and allowances. The Company establishes allowances based upon historical experience and any specific customer collection issues identified by the Company. Uncollectible accounts receivable are written off when a settlement is reached or when the Company has determined the balance will not be collected. Inventories Inventories are stated at the lower of cost (using the first-in, first-out (FIFO) method) or net realizable value. Cost includes material, labor, and overhead. Fixed Assets Fixed assets which are owned are stated at cost less accumulated depreciation, and are depreciated on a straight-line basis over the estimated useful lives of the properties and equipment. Leasehold improvements and leased equipment are amortized over the shorter of the lives of the leases or the underlying assets. Maintenance and repair costs that do not improve service potential or extend economic life are expensed as incurred. Warranty The Company provides warranty terms based upon the type of product sold. The Company estimates the warranty accrual based upon various factors, including historical warranty costs, current trends, product mix, and sales. The accounting for warranty accruals requires the Company to make assumptions and judgments, and to the extent actual results differ from original estimates, adjustments to recorded accruals may be required. See Note 6 - Accrued Expenses and Other Current Liabilities for further detail. Income Taxes Deferred tax assets and liabilities are determined based on the temporary differences between the financial reporting and tax basis of assets and liabilities, applying enacted statutory tax rates in effect for the year in which the differences are expected to reverse. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all the deferred tax assets will not be realized. The Tax Cuts and Jobs Act (the “TCJA”), enacted in 2017, created a new requirement that certain income earned by foreign subsidiaries, known as global intangible low-tax income (“GILTI”), must be included in the gross income of their U.S. shareholder. We have elected to account for GILTI tax in the year the tax is incurred. The Company accounts for uncertainty in tax positions by recognizing in its financial statements the impact of a tax position only if that position is more likely than not of being sustained on audit, based on the technical merits of the position. Further, the Company assesses the tax benefits of the tax positions in its financial statements based on experience with similar tax positions, information obtained during the examination process and the advice of experts. The Company recognizes previously unrecognized tax benefits upon the earlier of the expiration of the period to assess tax in the applicable taxing jurisdiction or when the matter is constructively settled and upon changes in statutes or regulations and new case law or rulings. The Company classifies interest and penalties related to income taxes as a component of income tax expense in its Consolidated Statements of Income. Goodwill 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. In 2019 and 2018, the Company assessed qualitative factors of its reporting units to determine whether it was more likely than not the fair value of the reporting unit was less than its carrying amount, including goodwill. The qualitative impairment test consists of an assessment of qualitative factors, including general economic and industry conditions, market share and input costs. Other Intangible Assets Intangible assets with estimable useful lives are amortized over their respective estimated useful lives to their estimated residual values, and reviewed for impairment. Intangible assets are amortized using either an accelerated or straight-line method, whichever best reflects the pattern in which the estimated future economic benefits of the asset will be consumed. The useful lives of intangible assets are determined after considering the expected cash flows and other specific facts and circumstances related to each intangible asset. Intangible assets with indefinite lives are not amortized, but instead are tested for impairment annually in November, or more frequently if certain circumstances indicate a possible impairment may exist. Impairment of Long-Lived Assets Long-lived assets, other than goodwill, are tested for impairment when changes in circumstances indicate their carrying value may not be recoverable. A determination of impairment, if any, is made based on the undiscounted value of estimated future cash flows, salvage value or expected net sales proceeds, depending on the circumstances. Impairment is measured as the excess of the carrying value over the estimated fair value of such assets. Environmental Liabilities Accruals for environmental matters are recorded when it is probable a liability has been incurred and the amount of the liability can be reasonably estimated, based upon current law and existing technologies. These amounts, which are not discounted and are exclusive of claims against potentially responsible third parties, are adjusted periodically as assessment and remediation efforts progress or additional technical or legal information becomes available. Environmental exposures are difficult to assess for numerous reasons, including the identification of new sites, developments at sites resulting from investigatory studies and remedial activities, advances in technology, changes in environmental laws and regulations and their application, the scarcity of reliable data pertaining to identified sites, the difficulty in assessing the involvement and financial capability of other potentially responsible parties and the Company’s ability to obtain contributions from other parties, and the lengthy time periods over which site remediation occurs. It is possible some of these matters (the outcomes of which are subject to various uncertainties) may be resolved unfavorably against the Company, and could materially affect operating results when resolved in future periods. Foreign Currency Translation The financial statements of the Company’s international subsidiaries generally are measured using the local currency as the functional currency. The translation from the applicable foreign currency to U.S. Dollars is performed for balance sheet accounts using exchange rates in effect at the balance sheet date and for revenue and expense accounts using the weighted average exchange rate for the period. The resulting translation adjustments are recorded in accumulated other comprehensive income (loss) as a component of stockholders’ equity. The Company reflects net foreign exchange transaction gains and losses resulting from the conversion of the transaction currency to functional currency as a component of foreign currency exchange gains or losses in selling, general and administrative expenses in the Consolidated Statements of Income. Financial Instruments The carrying values of cash and cash equivalents, accounts receivable, derivative instruments, and accounts payable approximate their fair value due to the short-term nature of these instruments. Stock-Based Compensation All stock-based compensation awards are expensed over their vesting period, based on fair value. For awards having a service-only vesting condition, the Company recognizes stock-based compensation expense on a straight-line basis over the requisite service periods. For awards with a performance vesting condition, which are subject to certain pre-established performance targets, the Company recognizes stock-based compensation expense on a graded-vesting basis to the extent it is probable the performance targets will be met. The fair values of deferred stock units, restricted stock units, restricted stock, and stock awards are based on the market price of the Company’s common stock, all on the date the stock-based awards are granted. Revenue Recognition The Company recognizes revenue when performance obligations under the terms of contracts with customers are satisfied, which occurs with the transfer of control of the Company’s products. Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring its products to its customers. Sales, value added and other taxes collected concurrent with revenue-producing activities are excluded from revenue. For the majority of product sales, the Company transfers control and recognizes revenue when it ships the product from its facility to its customer. The amount of consideration the Company receives and the revenue recognized varies with sales discounts, volume rebate programs and indexed material pricing. When the Company offers customers retrospective volume rebates, it estimates the expected rebates based on an analysis of historical experience. The Company adjusts its estimate of revenue related to volume rebates at the earlier of when the most likely amount of consideration expected to be received changes or when the consideration becomes fixed. When the Company offers customers prompt pay sales discounts or agrees to variable pricing based on material indices, it estimates the expected discounts or pricing adjustments based on an analysis of historical experience. The Company adjusts its estimate of revenue related to sales discounts and indexed material pricing to the expected value of the consideration to which the Company will be entitled. The Company includes the variable consideration in the transaction price to the extent that it is probable that a significant reversal of cumulative revenue will not occur when the volume, discount or indexed material price uncertainties are resolved. See Note 14 - Segment Reporting for the Company’s disclosures of disaggregated revenue. Shipping and Handling Costs The Company recognizes shipping and handling costs as fulfillment costs when control over products has transferred to the customer, and records the expense within selling, general and administrative expenses. Such costs aggregated $77.3 million, $83.2 million, and $68.6 million in the years ended December 31, 2019, 2018, and 2017, respectively. Legal Costs The Company expenses all legal costs associated with litigation as incurred. Legal expenses are included in selling, general and administrative expenses in the Consolidated Statements of Income. Fair Value Measurements Fair value is determined using a hierarchy that has three levels based on the reliability of the inputs used to determine fair value. Level 1 refers to fair values determined based on quoted prices in active markets for identical assets. Level 2 refers to fair values estimated using significant other observable inputs, and Level 3 includes fair values estimated using significant unobservable inputs. 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 ASU in the first quarter of 2020 and does not expect the adoption of this ASU to have a material impact on its 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 ASU in the first quarter of 2020 and does not expect the adoption of this ASU to have a material impact on its consolidated financial statements. Recently adopted accounting pronouncements In February 2016, the FASB issued ASU 2016-02, Leases, and all related amendments, which established ASC Topic 842 (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 are 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 Consolidated Balance Sheet and recognize the associated lease payments in its 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 10 of the Notes to Consolidated Financial Statements for expanded disclosures required under Topic 842. |
Acquisitions, Goodwill And Othe
Acquisitions, Goodwill And Other Intangible Assets | 12 Months Ended |
Dec. 31, 2019 | |
Acquisitions, Goodwill And Other Intangible Assets [Abstract] | |
Acquisitions, Goodwill and Other Intangible Assets | ACQUISITIONS, GOODWILL AND OTHER INTANGIBLE ASSETS Subsequent Event Polyplastic In January 2020, the Company acquired 100 percent of the equity interests of Polyplastic Group B.V. (with its subsidiaries “Polyplastic”), a premier window supplier to the caravaning industry, headquartered in Rotterdam, Netherlands. The purchase price was $97.6 million, net of cash acquired, plus contingent consideration up to $7.7 million, based on future sales by this operation. The results of the acquired business will be included primarily in the Company’s OEM Segment. The Company is in the process of determining the fair value of the assets acquired and liabilities assumed for the opening balance sheet. Acquisitions in 2019 CURT In December 2019, the Company acquired 100 percent of the equity interests of CURT Acquisition Holdings, Inc. (with its subsidiaries “CURT”), a leading manufacturer and distributor of branded towing products and truck accessories for the aftermarket, headquartered in Eau Claire, Wisconsin. The purchase price was $337.6 million, net of cash acquired, and is subject to potential post-closing adjustments related to net working capital. The results of the acquired business have been included in the Consolidated Statements of Income since the acquisition date, primarily in the Company’s Aftermarket Segment. 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 $ 337,640 Assets Acquired Accounts receivable $ 28,611 Inventories 88,765 Fixed assets 24,036 Customer relationship 112,000 Tradename and other identifiable intangible assets 37,705 Operating lease right-of-use assets 27,925 Other tangible assets 4,060 Liabilities Assumed Accounts payable (18,577) Current portion of operating lease obligations (5,360) Accrued expenses and other current liabilities (10,002) Operating lease obligations (22,565) Deferred taxes (31,877) Total fair value of net assets acquired $ 234,721 Goodwill (not tax deductible) $ 102,919 The fair values of the customer relationship and tradename intangible assets are being amortized over their estimated useful lives of 17 years and 20 years, respectively. The fair values of these assets were determined using a discounted cash flow model, which is a level 3 input in the fair value hierarchy. 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. The results of CURT are included in the Company’s Consolidated Statements of Income since the December 19, 2019 acquisition date and were not material to the consolidated results. The following unaudited pro forma information represents the Company’s results of operations as if the 2019 acquisition of CURT had occurred at the beginning of 2018. The disclosure of pro forma net sales and earnings does not purport to indicate the results that would actually have been obtained had the acquisition been completed on the assumed date for the periods presented, or which may be realized in the future. The unaudited pro forma information combines the reported results of the Company and CURT but does not reflect any operating efficiencies, cost savings, financing costs, step-up of assets, or other accounting related adjustments resulting from the acquisition. (unaudited) Year Ended December 31, (In thousands, except per share amounts) 2019 2018 Net sales $ 2,639,761 $ 2,735,378 Net income $ 144,878 $ 147,878 Basic net income per common share $ 5.80 $ 5.87 Diluted net income per common share $ 5.77 $ 5.81 The pro forma earnings for the year ended December 31, 2019 were adjusted to exclude $20.2 million of costs incurred directly attributable to the acquisition. Nonrecurring expenses for goodwill amortization of $5.2 million and $5.0 million were excluded from pro forma earnings for the years ended December 31, 2019 and 2018, respectively. The pro forma earnings do not reflect adjustments for any changes in CURT's historical capital structure, which included interest charges of $14.8 million and $14.0 million for the years ended December 31, 2019 and 2018, respectively. The Company incurred costs during the year ended December, 31 2019 related specifically to this acquisition of $1.0 million, which are included in selling, general, and administrative expenses in the Consolidated Statements of Income. PWR-ARM In November 2019, the Company acquired the PWR-ARM brand and electric powered Bimini business assets of Schwintek, Inc. (“PWR-ARM”), a premier electric sunshade solution for pontoon and smaller power boats. The purchase price was $45.0 million, which includes holdback payments of $5.0 million to be paid over the next two years. The results of the acquired business have been included in the Consolidated Statements of Income since the acquisition date, primarily in the Company’s OEM Segment. As the acquisition of PWR-ARM is not considered to have a material impact on the Company’s financial statements, pro forma results of operations and other disclosures are not presented. 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 $ 40,000 Holdback payment 5,000 Total value of consideration given $ 45,000 Customer relationship and other identifiable intangible assets $ 7,030 Net tangible assets 520 Total fair value of net assets acquired $ 7,550 Goodwill (tax deductible) $ 37,450 The customer relationship intangible asset is being amortized over its estimated useful life of 5 years. The consideration given was greater than the fair value of the net assets acquired, resulting in goodwill, because the Company anticipates an increase in the markets for the acquired products. Lewmar Marine Ltd. In August 2019, the Company acquired 100 percent of the equity interests of Lewmar Marine Ltd. and related entities (collectively, “Lewmar”), a supplier of leisure marine equipment, headquartered in Havant, United Kingdom. The purchase price was $43.2 million, net of cash acquired. The results of the acquired business have been included in the Consolidated Statements of Income since the acquisition date, primarily in the Company’s OEM Segment. The Company is validating account balances and finalizing the valuation for the acquisition. As the acquisition of Lewmar is not considered to have a material impact on the Company’s financial statements, pro forma results of operations and other disclosures are not presented. The acquisition of this business was preliminarily recorded on the acquisition date as follows (in thousands) : Cash consideration, net of cash acquired $ 43,224 Customer relationship and other identifiable intangible assets $ 19,579 Net tangible assets 3,287 Total fair value of net assets acquired $ 22,866 Goodwill (not tax deductible) $ 20,358 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. Other Acquisitions in 2019 During fiscal 2019, the Company completed four other acquisitions totaling $28.3 million of purchase consideration, net of cash acquired, and subject to potential post-closing adjustments related to net working capital. The preliminary purchase price allocations resulted in $11.6 million of goodwill, of which $5.8 million is not deductible for tax purposes, and $9.2 million of acquired identifiable intangible assets. The accounting for these acquisitions is incomplete at December 31, 2019. The estimated fair values of assets acquired and liabilities assumed are based on preliminary allocations and will be finalized during the respective measurement periods which will not exceed 12 months from the respective acquisition dates. As these acquisitions are not considered to have a material impact on the Company’s financial statements, pro forma results of operations and other disclosures are not presented. Acquisitions in 2018 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 in the Consolidated Statements of Income since the acquisition date, primarily in the Company’s OEM Segment. 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. The results of the acquired business have been included in the Consolidated Statements of Income since the acquisition date, primarily in the Company’s OEM Segment. Hehr In February 2018, the Company acquired substantially all of the business assets of Hehr International Inc., (“Hehr”), a manufacturer of windows and tempered and laminated glass for the RV, transit, specialty vehicle, and other adjacent industries, headquartered in Los Angeles, California. The purchase price was $51.5 million paid at closing. The results of the acquired business have been included in the Consolidated Statements of Income since the acquisition date, primarily in the Company’s OEM Segment. Taylor Made In January 2018, the Company acquired 100 percent of the equity interests of Taylor Made Group, LLC, (“Taylor Made”), a marine supplier to boat builders and the aftermarket, as well as a key supplier to a host of other industrial end markets, headquartered in Gloversville, New York. The purchase price was $90.4 million, net of cash acquired, paid at closing. The results of the acquired business have been included in the Consolidated Statements of Income since the acquisition date, primarily in the Company’s OEM Segment. Acquisitions in 2017 Metallarte S.r.l. In June 2017, the Company acquired 100 percent of the equity interests of Metallarte S.r.l., (“Metallarte”), a manufacturer of entry and compartment doors for the European caravan market located near Siena, Italy, and its subsidiary, RV Doors, S.r.l., a manufacturer of driver-side doors located near Venice, Italy. The purchase price was $14.1 million paid at closing, plus contingent consideration based on future sales by this operation. The results of the acquired business have been included in the Consolidated Statements of Income since the acquisition date, primarily in the Company’s OEM Segment. Lexington In May 2017, the Company acquired the business and certain assets of Lexington LLC, (“Lexington”), a manufacturer of high quality seating solutions for the marine, RV, transportation, medical and office furniture industries located in Elkhart, Indiana. The purchase price was $40.1 million paid at closing. The results of the acquired business have been included in the Consolidated Statements of Income since the acquisition date, primarily in the Company’s OEM Segment. SessaKlein S.p.A. In February 2017, the Company acquired 100 percent of the outstanding shares of SessaKlein S.p.A., (“SessaKlein”), a manufacturer of highly engineered side window systems for both high speed and commuter trains, located near Varese, Italy. The purchase price was $6.5 million paid at closing, net of cash acquired, plus contingent consideration based on future sales by this operation. The results of the acquired business have been included in the Consolidated Statements of Income since the acquisition date, primarily in the Company’s OEM Segment. Goodwill Changes in the carrying amount of goodwill by reportable segment were as follows: (In thousands) OEM Segment Aftermarket Segment Total Net balance – December 31, 2017 $ 109,641 $ 14,542 $ 124,183 Acquisitions – 2018 50,698 5,369 56,067 Other (82) — (82) Net balance – December 31, 2018 160,257 19,911 180,168 Acquisitions – 2019 57,245 115,178 172,423 Other (1,882) 405 (1,477) Net balance – December 31, 2019 $ 215,620 $ 135,494 $ 351,114 The Company performed its annual goodwill impairment procedures for all of its reporting units as of November 30, 2019, 2018, and 2017, and concluded no goodwill impairment existed at that time. The Company plans to update its assessment as of November 30, 2020, or sooner if events occur or circumstances change that could more likely than not reduce the fair value of a reporting unit below its carrying value. The goodwill balance as of each of December 31, 2019, 2018, and 2017 included $50.5 million of accumulated impairment, which occurred prior to December 31, 2017. 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, by segment, at December 31 were as follows: (In thousands) 2019 2018 OEM Segment $ 164,047 $ 159,803 Aftermarket Segment 177,379 16,539 Other intangible assets $ 341,426 $ 176,342 Other intangible assets consisted of the following at December 31, 2019: (In thousands) Gross Accumulated Net Estimated Useful Customer relationships $ 319,934 $ 69,008 $ 250,926 6 to 17 Patents 76,206 44,611 31,595 3 to 19 Trade names (finite life) 50,917 7,086 43,831 3 to 20 Trade names (indefinite life) 7,600 — 7,600 Indefinite Non-compete agreements 7,598 4,947 2,651 3 to 6 Other 309 173 136 2 to 12 Purchased research and development 4,687 — 4,687 Indefinite Other intangible assets $ 467,251 $ 125,825 $ 341,426 The Company performed its annual impairment test for indefinite lived intangible assets as of November 30, 2019, 2018, and 2017, and concluded no impairment existed at that time. 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 Amortization expense related to other intangible assets was as follows for the years ended December 31: (In thousands) 2019 2018 2017 Cost of sales $ 5,200 $ 5,350 $ 5,631 Selling, general and administrative expense 18,558 15,912 13,942 Amortization expense $ 23,758 $ 21,262 $ 19,573 Estimated amortization expense for other intangible assets for the next five years is as follows: (In thousands) 2020 2021 2022 2023 2024 Cost of sales $ 4,469 $ 4,393 $ 4,180 $ 3,321 $ 2,566 Selling, general and administrative expense 28,887 28,372 28,227 27,484 27,038 Amortization expense $ 33,356 $ 32,765 $ 32,407 $ 30,805 $ 29,604 |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | INVENTORIES Inventories consisted of the following at December 31: (In thousands) 2019 2018 Raw materials $ 256,850 $ 284,467 Work in process 23,653 12,291 Finished goods 113,104 43,857 Inventories, net $ 393,607 $ 340,615 |
Fixed Assets
Fixed Assets | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Fixed Assets | FIXED ASSETS Fixed assets consisted of the following at December 31: Estimated Useful Life (In thousands) 2019 2018 in Years Land $ 23,868 $ 22,962 Buildings and improvements 185,744 159,805 10 to 40 Leasehold improvements 23,012 16,132 3 to 12 Machinery and equipment 311,554 251,995 3 to 15 Furniture and fixtures 85,901 51,893 3 to 8 Construction in progress 48,288 56,447 Fixed assets, at cost 678,367 559,234 Less accumulated depreciation and amortization 312,058 236,358 Fixed assets, net $ 366,309 $ 322,876 Depreciation and amortization of fixed assets was as follows for the years ended December 31: (In thousands) 2019 2018 2017 Cost of sales $ 39,442 $ 35,656 $ 27,042 Selling, general and administrative expenses 12,158 10,608 7,798 Total $ 51,600 $ 46,264 $ 34,840 |
Accrued Expenses And Other Curr
Accrued Expenses And Other Current Liabilities | 12 Months Ended |
Dec. 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 December 31: (In thousands) 2019 2018 Employee compensation and benefits $ 45,612 $ 33,835 Current portion of accrued warranty 29,898 32,180 Customer rebates 14,129 6,193 Other 42,781 26,424 Accrued expenses and other current liabilities $ 132,420 $ 98,632 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 historical warranty costs, current trends, product mix, and 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 years ended December 31: (In thousands) 2019 2018 2017 Balance at beginning of period $ 46,530 $ 38,502 $ 32,393 Provision for warranty expense 30,520 31,819 25,399 Warranty liability from acquired businesses 287 760 150 Warranty costs paid (30,170) (24,551) (19,440) Balance at end of period 47,167 46,530 38,502 Less long-term portion 17,269 14,350 15,447 Current portion of accrued warranty at end of period $ 29,898 $ 32,180 $ 23,055 |
Retirement And Other Benefit Pl
Retirement And Other Benefit Plans | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
Retirement and Other Benefit Plans | RETIREMENT AND OTHER BENEFIT PLANS Defined Contribution Plan The Company maintains a discretionary defined contribution 401(k) profit sharing plan covering all eligible employees. The Company contributed $7.7 million, $6.8 million, and $4.2 million to this plan during the years ended December 31, 2019, 2018, and 2017, respectively. Deferred Compensation Plan |
Long-Term Indebtedness
Long-Term Indebtedness | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Long-Term Indebtedness | LONG-TERM INDEBTEDNESS Long-term debt consisted of the following at December 31: (In thousands) 2019 2018 Term Loan $ 300,000 $ — Revolving Credit Loan 266,214 240,060 Shelf-Loan Facility 50,000 50,000 Other 16,349 4,425 Unamortized deferred financing fees (1,774) (361) 630,789 294,124 Less current portion (17,883) (596) Long-term indebtedness $ 612,906 $ 293,528 Amended Credit Agreement 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 (as amended, 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 ($45.0 million, or €40.0 million drawn at December 31, 2019). On December 19, 2019, the Company entered into an Incremental Joinder and Amendment No. 1 (“Amendment No. 1”) of the Amended Credit Agreement with several banks, which provided an incremental term loan in the amount of $300.0 million, which the Company borrowed to fund a portion of the purchase price for the acquisition of CURT. The term loan is required to be repaid in an amount equal to 1.25% of original principal amount of the term loan for the first eight quarterly periods commencing March 31, 2020, and then 1.875% of the original principal amount of the term loan for each quarter thereafter, until the maturity date of December 14, 2023. In addition, Amendment No. 1 modified the credit agreement to allow the Company to request an increase to the facility of up to an additional $300.0 million as an increase to the revolving credit facility or one, or more, incremental term loan facilities upon approval of the lenders and the Company receiving certain other consents. As a result of the new incremental term loan, the total borrowing capacity under the Amended Credit Agreement was increased from $600.0 million to $900.0 million. Interest on borrowings under the revolving credit facility and incremental term loan are 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 (0.375 percent at December 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 (1.375 percent at December 31, 2019) depending on the Company’s total net leverage ratio. At December 31, 2019 and 2018, the Company had $2.5 million and $2.2 million, respectively, in issued, but undrawn, standby letters of credit under the revolving credit facility. Availability under the Company’s revolving credit facility was $331.8 million at December 31, 2019. Shelf-Loan Facility 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 years, at a fixed interest rate of 3.35 percent per annum, payable quarterly in arrears. On March 29, 2019, the Company issued $50.0 million of Series B Senior Notes (the “Series B Notes”) to certain affiliates of Prudential for a term of three years, at a fixed interest rate of 3.8 percent per annum, payable quarterly in arrears, of which the entire amount was outstanding at December 31, 2019. The net proceeds of the Series B Notes were used to repay the Series A Notes. On November 11, 2019, the Company further amended the Shelf-Loan Facility to provide for a new $200.0 million shelf facility pursuant to which the Series B Notes are currently outstanding. The Shelf-Loan Facility expires on November 11, 2022. The Shelf-Loan Facility provides for Prudential to consider purchasing, at the Company’s request, in one or a series of transactions, additional 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. General At December 31, 2019, the fair value of the Company’s long-term debt under the Amended Credit Agreement and the Shelf-Loan Facility approximates the carrying value, as estimated using quoted market prices and discounted future cash flows based on similar borrowing arrangements. 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 a minimum debt service coverage ratio and must meet certain other financial requirements. At December 31, 2019 and 2018, the Company was in compliance with all such requirements, and expects to remain in compliance for the next twelve months. The Amended Credit Agreement and the Shelf-Loan Facility include a maximum net leverage ratio covenant which limits the amount of consolidated outstanding indebtedness that the Company may incur on a trailing twelve-month EBITDA, as defined. This limitation did not impact the Company’s ability to incur additional indebtedness under its revolving credit facility at December 31, 2019. The remaining availability under the revolving credit facility was $481.8 million at December 31, 2019. The Company believes the availability under the revolving credit facility under the Amended Credit Agreement, along with its cash flows from operations, are adequate to finance the Company’s anticipated cash requirements for the next twelve months. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES The components of earnings before income taxes consisted of the following for the years ended December 31: (In thousands) 2019 2018 2017 United States $ 189,834 $ 191,095 $ 213,967 Foreign 1,580 1,257 (1,123) Total earnings before income taxes $ 191,414 $ 192,352 $ 212,844 The provision for income taxes in the Consolidated Statements of Income was as follows for the years ended December 31: (In thousands) 2019 2018 2017 Current: Federal $ 33,655 $ 22,297 $ 62,274 State and local 6,764 6,416 10,720 Foreign 1,070 1,214 158 Total current provision 41,489 29,927 73,152 Deferred: Federal 5,923 12,478 7,614 State and local (969) 1,639 (806) Foreign (1,538) (243) — Total deferred provision 3,416 13,874 6,808 Provision for income taxes $ 44,905 $ 43,801 $ 79,960 On December 22, 2017, the TCJA was signed into law making significant changes to the Internal Revenue Code (“IRC”). The TCJA changes included a reduction of the corporate income tax rate from 35 percent to 21 percent effective for tax years beginning after December 31, 2017, a provision that allows for full expensing of certain qualified property, repeal of the manufacturing deduction, and further limitations on the deductibility of certain executive compensation. The TCJA contains other provisions that have not materially affected the Company, including a one-time transition tax on certain unrepatriated earnings of foreign subsidiaries, limitations on the deductibility of interest expense, and the creation of U.S. tax base erosion provisions. Following the enactment of the TCJA, the Securities and Exchange Commission issued Staff Accounting Bulletin No. 118 (“SAB 118”) to provide guidance on the accounting and reporting impacts of the TCJA. For the year ended December 31, 2018, the Company finalized its tax accounting for the TCJA and pursuant to SAB 118 recorded a one-time non-cash charge of $0.6 million related to adjustments to deferred tax amounts provisionally recorded in the prior year. During the year ended December 31, 2017, the Company recorded a provisional one-time non-cash charge of $13.2 million related to the enactment of the TCJA, which resulted from the re-measurement of certain deferred tax assets using the lower U.S. corporate income tax rate. The Company has historically reinvested all unremitted earnings of our foreign subsidiaries and affiliates, and therefore has not recognized any U.S. deferred tax liability on those earnings. However, the TCJA change in the U.S. taxation of foreign income has led the Company to reassess its position as it relates to permanent reinvestment and it has now determined that it will only assert permanent reinvestment in its Canadian subsidiaries. The Company examined the potential liabilities related to investments in foreign subsidiaries and concluded that there is no material deferred tax liabilities that should be recorded. The provision for income taxes differs from the amount computed by applying the federal statutory rate of 21 percent for 2019 and 2018 and 35 percent for 2017 to income before income taxes for the following reasons for the years ended December 31: (In thousands) 2019 2018 2017 Income tax at federal statutory rate $ 40,197 $ 40,394 $ 74,495 State income tax, net of federal income tax impact 4,578 6,261 6,011 Domestic production deduction — — (5,511) Share-based payment compensation excess tax benefit (1,579) (2,914) (7,683) Changes in tax law (TCJA) — 612 13,210 Other 1,709 (552) (562) Provision for income taxes $ 44,905 $ 43,801 $ 79,960 At December 31, 2019, the Company had domestic federal income taxes receivable of $7.1 million, domestic state income taxes receivable of $4.6 million, and foreign taxes payable of $0.5 million recorded. At December 31, 2018, the Company had domestic federal income taxes receivable of $10.2 million, domestic state income taxes receivable of $0.4 million, and foreign taxes payable of $0.6 million recorded. Deferred Income Tax Assets and Liabilities and Valuation Allowances The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities were as follows at December 31: (In thousands) 2019 2018 Deferred tax assets: Goodwill and other intangible assets $ — $ 3,854 Stock-based compensation 2,290 2,956 Deferred compensation 5,976 6,710 Warranty 11,246 10,931 Inventory 8,001 6,375 Other 2,585 3,454 Lease obligation asset 25,055 822 Net operating loss and interest carryforwards 7,352 1,467 Total deferred tax assets before valuation allowance 62,505 36,569 Less: Valuation allowance (1,662) (1,261) Total deferred tax assets net of valuation allowance 60,843 35,308 Deferred tax liabilities: Lease obligation liability (24,368) — Fixed assets (27,898) (24,360) Intangible assets (44,317) (8,501) Total deferred tax liabilities (96,583) (32,861) Net deferred tax (liabilities) assets $ (35,740) $ 2,447 At December 31, 2019 and 2018, the Company had net foreign deferred tax liabilities of $9.7 million and $8.5 million, respectively, related to goodwill and other intangible assets included in other long-term liabilities on the Consolidated Balance Sheets. As of December 31, 2019, the Company had deferred tax assets recorded related to foreign net operating losses and tax credit carryforwards of $2.6 million, net. This includes $1.7 million related to UK entities and $0.9 million related to Italian entities. The net operating losses and tax credit carryforwards have indefinite lives. The valuation allowance for deferred tax assets as of December 31, 2019 and 2018 was $1.7 million and $1.3 million, respectively. The valuation allowance at 2019 and 2018 was related to net operating losses and tax credit carryforwards related to the UK entities. The net change in the total valuation allowance for the year ended December 31, 2019 was an increase of $0.4 million. The increase in the valuation allowance relates to the current year losses in the UK. Based upon historical results and estimated future results, it is the judgment of management that these tax carryforward attributes related to the UK entities are not likely to be realized. As of December 31, 2019, the Company had a domestic deferred tax asset recorded related to net operating losses acquired during the year of $0.3 million which will begin to expire as of December 31, 2029. Additionally, the Company had a domestic deferred tax asset recorded related to interest expense limitation of $4.4 million net, which has an indefinite life carry forward. No valuation allowance has been established against these net operating losses and interest carryforwards as they are more likely than not to be realized prior to expiration. Certain tax attributes are subject to annual limitations as defined under Internal Revenue Code Section 382 as a result of the stock acquisitions in 2019. The Company has concluded it is more likely than not that it will realize the benefit of all other existing deferred tax assets, net of the valuation allowances mentioned above. Unrecognized Tax Benefits The following table reconciles the total amounts of unrecognized tax benefits, at December 31: (In thousands) 2019 2018 2017 Balance at beginning of period $ 4,325 $ 4,145 $ 3,747 Changes in tax positions of prior years 480 114 (174) Additions based on tax positions related to the current year 4,288 802 1,255 Payments — — (211) Closure of tax years (879) (736) (472) Balance at end of period $ 8,214 $ 4,325 $ 4,145 In addition, the total amount of accrued interest and penalties related to taxes, recognized as a liability, was $0.4 million, $0.2 million, and $0.2 million at December 31, 2019, 2018, and 2017, respectively. The total amount of unrecognized tax benefits, net of federal income tax benefits, of $7.9 million, $3.9 million, and $3.7 million at December 31, 2019, 2018, and 2017, respectively, would, if recognized, increase the Company’s earnings, and lower the Company’s annual effective tax rate in the year of recognition. The Company is subject to taxation in the United States and various states and foreign jurisdictions. In the normal course of business, the Company is subject to examinations by taxing authorities in these jurisdictions. For U.S. federal and state income tax purposes, tax years 2018, 2017, and 2016 remain subject to examination. The Company has assessed its risks associated with all tax return positions, and believes its tax reserve estimates reflect its best estimate of the deductions and positions it will be able to sustain, or it may be willing to concede as part of a settlement. At this time, the Company does not anticipate any change in its tax reserves in the next twelve months. The Company will continue to monitor the progress and conclusion of all audits and will adjust its estimated liability as necessary. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Leases | LEASES The Company leases certain manufacturing and distribution 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 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 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 year ended December 31, 2019 were as follows: (in thousands) Operating lease cost $ 21,899 Short-term lease cost 2,611 Variable lease cost 1,781 Total lease cost $ 26,291 Rent expense for operating leases was $24.2 million and $15.2 million for the years ended December 31, 2018 and 2017, respectively. Future minimum lease payments under operating leases as of December 31, 2019 were as follows: (in thousands) Year Ending December 31, 2020 $ 26,764 2021 23,042 2022 17,031 2023 11,951 2024 10,477 Thereafter 33,077 Total future minimum lease payments (a) 122,342 Less: Interest (20,801) Present value of operating lease liabilities $ 101,541 (a) Refer to the Company’s 2018 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 December 31, 2019, the Company’s operating leases had a weighted-average remaining lease term of 6.6 years and a weighted-average discount rate of 5.5 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 $50.5 million were recognized as non-cash asset additions that resulted from new operating lease obligations during the twelve months ended December 31, 2019, which includes $34.3 million of right-of-use assets from acquisitions. Cash paid for amounts included in the present value of operating lease obligations and included in cash flows from operations was $21.8 million for the twelve months ended December 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 Consolidated Balance Sheets. These leases were not material to the Consolidated Financial Statements as of December 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 material. |
Commitments And Contingencies
Commitments And Contingencies | 12 Months Ended |
Dec. 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 December 31, 2019 and 2018, based on the present value of the expected future cash flows using a market participant’s weighted average cost of capital of 11.4 percent and 12.1 percent, respectively. 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 years ended December 31: (In thousands) 2019 2018 2017 Balance at beginning of period $ 7,302 $ 12,545 $ 9,241 Acquisitions — 43 7,288 Payments (10) (4,803) (7,682) Accretion (a) 792 951 1,652 Fair value adjustments (a) (b) (3,691) (944) 1257 Net foreign currency translation adjustment 3 (490) 789 Balance at end of the period (c) 4,396 7,302 12,545 Less current portion in accrued expenses and other current liabilities (2,351) (17) (4,658) Total long-term portion in other long-term liabilities $ 2,045 $ 7,285 $ 7,887 g. Recorded in selling, general and administrative expenses in the Consolidated Statements of Income. h. Includes adjustments to assumptions on weighted average cost of capital and relevant sales projections. i. Amounts represent the fair value of estimated remaining payments. The total estimated remaining undiscounted payments as of December 31, 2019 were $5.6 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 August 2019, the Company and Furrion agreed to terminate the agreement effective December 31, 2019, and transition all sale and distribution of Furrion products then handled by the Company to Furrion. Effective January 1, 2020, Furrion is responsible for distributing its products directly to the customer and assumed all responsibilities previously carried out by the Company relating to Furrion products. Upon termination of the agreement, Furrion has agreed to purchase from the Company all non-obsolete stock and certain obsolete and slow-moving stock of Furrion products at the cost paid by the Company. At December 31, 2019, the Company had receivables of $40.0 million recorded for purchases of inventory stock by Furrion. 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 Consolidated Balance Sheet as of December 31, 2019, would not be material to the Company’s financial position or annual results of operations. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2019 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | STOCKHOLDERS’ EQUITY Dividends In 2016, the Company initiated the payment of regular quarterly dividends. The table below summarizes the regular quarterly dividends declared and paid during the years ended December 31, 2019, 2018, and 2017: (In thousands, except per share data) Per Share Record Date Payment Date Total Paid First Quarter 2017 $ 0.50 03/06/17 03/17/17 $ 12,442 Second Quarter 2017 0.50 05/19/17 06/02/17 12,445 Third Quarter 2017 0.50 08/18/17 09/01/17 12,459 Fourth Quarter 2017 0.55 11/17/17 12/01/17 13,711 Total 2017 $ 2.05 $ 51,057 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 Second Quarter 2019 0.65 06/07/19 06/21/19 16,267 Third Quarter 2019 0.65 09/06/19 09/20/19 16,267 Fourth Quarter 2019 0.65 12/06/19 12/20/19 16,280 Total 2019 $ 2.55 $ 63,813 Stock-Based Awards Prior to stockholder approval of the LCI Industries 2018 Omnibus Incentive Plan (the “2018 Plan) in May 2018, the Company granted to its directors, employees, and other eligible persons common stock-based awards, such as stock options, deferred and restricted stock units, restricted stock, and stock awards pursuant to the LCI Industries Equity Award and Incentive Plan, as Amended and Restated (the “2011 Plan”), which was approved by stockholders in May 2011. On May 24, 2018, the Company’s stockholders approved the 2018 Plan, which provides that the number of shares of common stock that may be the subject of awards and issued under the 2018 Plan is 1,500,000, plus shares subject to any awards outstanding as of May 24, 2018 under the 2011 Plan that subsequently expire, are forfeited or canceled, are settled for cash, are not issued in shares, or are tendered or withheld to pay the exercise price or satisfy any tax withholding obligations related to the award. Following the stockholders’ approval of the 2018 Plan, no further awards may be made under the 2011 Plan. Executive officers and other employees of the Company and its subsidiaries and affiliates, and independent directors, consultants, and others who provide substantial services to the Company and its subsidiaries and affiliates, are eligible to be granted awards under the 2018 Plan. Under the 2018 Plan, the Compensation Committee of LCII’s Board of Directors is authorized to grant stock options, stock appreciation rights, restricted stock awards, stock unit awards, other stock-based awards, and cash incentive awards. The number of shares available for future awards under the 2018 Plan and 2011 Plan, as applicable, was 1,361,748, 1,570,274, and 737,689 at December 31, 2019, 2018, and 2017, respectively. Stock-based compensation resulted in charges to operations as follows for the years ended December 31: (In thousands) 2019 2018 2017 Deferred and restricted stock units $ 14,342 $ 12,427 $ 10,696 Restricted stock — 590 1,191 Stock awards 1,735 1,048 8,149 Stock-based compensation expense $ 16,077 $ 14,065 $ 20,036 Stock-based compensation expense is recorded in the Consolidated Statements of Income in the same line as cash compensation to those employees is recorded, primarily in selling, general and administrative expenses. In addition, the Company issued deferred stock units to certain executive officers in lieu of cash for a portion of prior year incentive compensation, in accordance with their compensation arrangements, of $6.9 million, for the year ended December 31, 2017. Deferred and Restricted Stock Units The 2018 Plan provides for the grant or issuance of stock units, including those that have deferral periods, such as deferred stock units (“DSUs”), and 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. As a result of the Company’s executive succession and corporate relocation, the vesting of certain deferred stock units was accelerated pursuant to contractual obligations with certain employees whose employment terminated. In addition, DSUs are issued in lieu of certain cash compensation. Transactions in DSUs and RSUs under the 2011 Plan or the 2018 Plan, as applicable, are summarized as follows: Number of Shares Weighted Average Price Outstanding at December 31, 2016 506,447 $ 50.00 Issued 68,340 108.61 Granted 95,079 109.50 Dividend equivalents 9,799 104.12 Forfeited (3,094) 72.96 Vested (227,516) 40.39 Outstanding at December 31, 2017 449,055 $ 72.55 Issued 5,354 106.10 Granted 101,650 103.20 Dividend equivalents 8,036 89.66 Forfeited (9,557) 76.71 Vested (290,132) 74.83 Outstanding at December 31, 2018 264,406 $ 83.84 Issued 6,073 89.82 Granted 252,068 81.07 Dividend equivalents 10,243 89.65 Forfeited (9,079) 89.67 Vested (177,563) 69.65 Outstanding at December 31, 2019 346,148 $ 87.54 As of December 31, 2019, there was $18.3 million of total unrecognized compensation cost related to DSUs and RSUs, which is expected to be recognized over a weighted average remaining period of 1.4 years. Stock Awards and Performance Stock Units The 2011 Plan provided 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 under the 2011 Plan or the 2018 Plan, as applicable, are summarized as follows: Number of Shares Stock Price Outstanding at December 31, 2016 232,622 $ 55.60 Granted 103,382 90.36 Dividend equivalents 5,249 104.93 Vested (69,434) 51.20 Outstanding at December 31, 2017 271,819 $ 70.29 Issued 5,641 106.10 Granted 111,246 106.10 Dividend equivalents 6,280 90.47 Forfeited (71,618) 86.65 Vested (136,000) 64.32 Outstanding at December 31, 2018 187,368 $ 91.39 Granted 48,995 78.11 Dividend equivalents 3,658 67.03 Forfeited (8,459) 106.10 Vested (102,434) 77.93 Outstanding at December 31, 2019 129,128 $ 96.21 As of December 31, 2019, there was $2.9 million of total unrecognized compensation cost related to outstanding stock awards and PSUs, which is expected to be recognized over a weighted average remaining period of 0.9 years. Weighted Average Common Shares Outstanding The following reconciliation details the denominator used in the computation of basic and diluted earnings per share for the years ended December 31: (In thousands) 2019 2018 2017 Weighted average shares outstanding for basic earnings per share 24,998 25,178 25,020 Common stock equivalents pertaining to stock-based awards 95 285 355 Weighted average shares outstanding for diluted earnings per share 25,093 25,463 25,375 The weighted average diluted shares outstanding for the years ended December 31, 2019, 2018, and 2017, exclude the effect of 122,775, 94,747, and 104,073 shares of common stock, respectively, subject to stock-based awards. Such shares were excluded from total diluted shares because they were anti-dilutive or the specified performance conditions that those shares were subject to were not yet achieved. Stock Repurchase Program On October 31, 2018, the Company’s Board of Directors authorized a new stock repurchase program granting the Company authority to repurchase up to $150.0 million of the Company’s common stock over a three |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | FAIR VALUE MEASUREMENTS Recurring The following table presents the Company’s liabilities measured at fair value on a recurring basis at December 31: 2019 2018 (In thousands) Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Liabilities Contingent consideration $ 4,396 $ — $ — $ 4,396 $ 7,302 $ — $ — $ 7,302 Derivative liabilities 679 — 679 — 1,108 — 1,108 — The Company did not have any assets measured at fair value on a recurring basis at December 31, 2019 or 2018. 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 December 31, 2019, the Company had six commodity swap derivative instruments for a total of 11.2 million pounds of steel used to hedge its commodity price risk on a portion of the exposure to movements associated with steel costs. These derivatives expire at various dates through April 2020, at an average steel price of $0.37 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 December 31, 2019, the $0.7 million corresponding liability was recorded in accrued expenses and other current liabilities as reflected in the Consolidated Balance Sheets. At December 31, 2018, the Company had five commodity swap derivative instruments for a total of 34.4 million pounds of steel used to hedge its commodity price risk on a portion of the exposure to movements associated with steel costs. These derivatives expire at various dates through February 2020, 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 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. 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 |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 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 88 percent, 91 percent, and 92 percent of consolidated net sales for each of the years ended December 31, 2019, 2018, and 2017, respectively, manufactures and 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; boats; trains; manufactured homes; and modular housing. Approximately 61 percent, 64 percent, and 71 percent of the Company’s OEM Segment net sales in 2019, 2018, and 2017, respectively, were of components for travel trailer and fifth-wheel RVs. The Aftermarket Segment, which accounted for 12 percent, 9 percent, and 8 percent of consolidated net sales for each of the years ended December 31, 2019, 2018, and 2017, respectively, supplies engineered components to the related aftermarket channels of the RV and adjacent industries, 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, biminis, covers, buoys, and fenders to the marine industry, and towing products and truck accessories. 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. The following tables presents the Company’s revenues disaggregated by segment and geography based on the billing address of the Company’s customers for the years ended December 31: 2019 (In thousands) U.S. (a) Int’l (b) Total OEM Segment: RV OEMs: Travel trailers and fifth-wheels $ 1,264,404 $ 12,314 $ 1,276,718 Motorhomes 110,405 45,218 155,623 Adjacent Industries OEMs 587,521 72,039 659,560 Total OEM Segment net sales 1,962,330 129,571 2,091,901 Aftermarket Segment: Total Aftermarket Segment net sales 263,382 16,199 279,581 Total net sales $ 2,225,712 $ 145,770 $ 2,371,482 2018 (In thousands) U.S. (a) Int’l (b) Total OEM Segment: RV OEMs: Travel trailers and fifth-wheels $ 1,431,574 $ 9,156 $ 1,440,730 Motorhomes 143,488 43,809 187,297 Adjacent Industries OEMs 574,100 40,489 614,589 Total OEM Segment net sales 2,149,162 93,454 2,242,616 Aftermarket Segment: Total Aftermarket Segment net sales 222,588 10,603 233,191 Total net sales $ 2,371,750 $ 104,057 $ 2,475,807 2017 (In thousands) U.S. (a) Int’l (b) Total OEM Segment: RV OEMs: Travel trailers and fifth-wheels $ 1,403,079 $ 2,904 $ 1,405,983 Motorhomes 138,895 20,522 159,417 Adjacent Industries OEMs 398,919 12,304 411,223 Total OEM Segment net sales 1,940,893 35,730 1,976,623 Aftermarket Segment: Total Aftermarket Segment net sales 160,637 10,510 171,147 Total net sales $ 2,101,530 $ 46,240 $ 2,147,770 (a) Net sales to customers in the United States of America (b) Net sales to customers domiciled in countries outside of the United States of America Corporate expenses are allocated between the segments based upon net sales. Accretion related to contingent consideration and other non-segment items are included in the segment to which they relate. Information relating to segments follows for the years ended December 31: Segments Corporate (In thousands) OEM Aftermarket Subtotal and Other Total 2019 Net sales to external customers (a) $ 2,091,901 $ 279,581 $ 2,371,482 $ — $ 2,371,482 Operating profit (b) 165,290 34,920 200,210 — 200,210 Total assets (c) 1,167,899 595,688 1,763,587 99,008 1,862,595 Expenditures for long-lived assets (d) 166,331 302,857 469,188 — 469,188 Depreciation and amortization 70,136 5,222 75,358 — 75,358 Segments Corporate (In thousands) OEM Aftermarket Subtotal and Other Total 2018 Net sales to external customers (a) $ 2,242,616 $ 233,191 $ 2,475,807 $ — $ 2,475,807 Operating profit (b) 167,459 31,329 198,788 — 198,788 Total assets (c) 1,034,254 129,776 1,164,030 79,863 1,243,893 Expenditures for long-lived assets (d) 247,895 20,544 268,439 — 268,439 Depreciation and amortization 63,447 4,079 67,526 — 67,526 2017 Net sales to external customers (a) $ 1,976,623 $ 171,147 $ 2,147,770 $ — $ 2,147,770 Operating profit (b) 190,276 24,005 214,281 — 214,281 Total assets (c) 785,926 76,309 862,235 83,623 945,858 Expenditures for long-lived assets (d) 148,570 4,875 153,445 — 153,445 Depreciation and amortization 50,751 3,662 54,413 314 54,727 (a) Thor Industries, Inc. (“Thor”), a customer of both segments, accounted for 27 percent, 31 percent, and 38 percent of the Company’s consolidated net sales for the years ended December 31, 2019, 2018, and 2017, respectively. Berkshire Hathaway Inc. (through its subsidiaries Forest River, Inc. and Clayton Homes, Inc.), a customer of both segments, accounted for 21 percent, 23 percent, and 25 percent of the Company’s consolidated net sales for the years ended December 31, 2019, 2018, and 2017, respectively. No other customer accounted for more than 10 percent of consolidated net sales in the years ended December 31, 2019, 2018, and 2017. (b) Certain general and administrative expenses are allocated between the segments based upon net sales or operating profit, depending upon the nature of the expense. (c) Segment assets include accounts receivable, inventories, fixed assets, goodwill and other intangible assets. Corporate and other assets include cash and cash equivalents, prepaid expenses and other current assets, deferred taxes, and other assets. (d) Expenditures for long-lived assets include capital expenditures, as well as fixed assets, goodwill and other intangible assets purchased as part of the acquisition of businesses. The Company purchased $395.6 million, $150.9 million, and $65.0 million of long-lived assets, as part of the acquisitions of businesses in the years ended December 31, 2019, 2018, and 2017, respectively. Net sales by OEM Segment product were as follows for the years ended December 31: (In thousands) 2019 2018 2017 OEM Segment: Chassis, chassis parts, and slide-out mechanisms $ 796,434 $ 908,065 $ 914,397 Windows and doors 585,464 615,644 424,625 Furniture and mattresses 342,691 380,514 342,680 Axles and suspension solutions 129,471 122,897 123,513 Other 237,841 215,496 171,408 Total OEM Segment net sales 2,091,901 2,242,616 1,976,623 Total Aftermarket Segment net sales 279,581 233,191 171,147 Total net sales $ 2,371,482 $ 2,475,807 $ 2,147,770 |
Quarterly Results Of Operations
Quarterly Results Of Operations (Unaudited) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Results of Operations (Unaudited) | QUARTERLY RESULTS OF OPERATIONS (UNAUDITED) Interim unaudited financial information follows: (In thousands, except per share amounts) First Quarter Second Quarter Third Quarter Fourth Quarter Year Year ended December 31, 2019 Net sales $ 592,172 $ 629,068 $ 586,221 $ 564,021 $ 2,371,482 Gross profit 132,594 148,653 135,473 122,482 539,202 Income before income taxes 45,248 63,558 47,253 35,355 191,414 Net income 34,366 47,527 35,809 28,807 146,509 Net income per common share: Basic $ 1.38 $ 1.90 $ 1.43 $ 1.15 $ 5.86 Diluted $ 1.38 $ 1.89 $ 1.42 $ 1.14 $ 5.84 Stock market price: High $ 86.13 $ 97.77 $ 95.52 $ 109.79 $ 109.79 Low $ 64.70 $ 75.59 $ 92.93 $ 87.15 $ 64.70 Close (at end of quarter) $ 76.82 $ 90.00 $ 91.85 $ 107.13 $ 107.13 Year ended December 31, 2018 Net sales $ 650,492 $ 684,455 $ 604,244 $ 536,616 $ 2,475,807 Gross profit 140,733 150,456 125,901 103,254 520,344 Income before income taxes 58,719 62,428 43,633 27,572 192,352 Net income 47,336 47,224 33,812 20,179 148,551 Net income per common share: Basic $ 1.88 $ 1.87 $ 1.34 $ 0.80 $ 5.90 Diluted $ 1.86 $ 1.86 $ 1.33 $ 0.80 $ 5.83 Stock market price: High $ 132.30 $ 104.90 $ 102.23 $ 80.89 $ 132.30 Low $ 99.46 $ 80.95 $ 98.40 $ 59.68 $ 59.68 Close (at end of quarter) $ 104.15 $ 90.15 $ 69.35 $ 66.80 $ 66.80 The sum of per share amounts for the four quarters may not equal the total per share amounts for the year as a result of changes in the weighted average common shares outstanding or rounding. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | The 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 transportation 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 December 31, 2019, the Company operated over 90 manufacturing and distribution facilities located throughout North America and Europe. 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 recreation and transportation 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 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 Consolidated Financial Statements. All significant intercompany balances and transactions have been eliminated. Certain prior year balances have been reclassified to conform to the current year presentation. |
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. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid investments with a maturity of three months or less at the time of purchase to be cash equivalents. |
Accounts Receivable | Accounts Receivable Accounts receivable are stated at historical carrying value, net of write-offs and allowances. The Company establishes allowances based upon historical experience and any specific customer collection issues identified by the Company. Uncollectible accounts receivable are written off when a settlement is reached or when the Company has determined the balance will not be collected. |
Inventories | Inventories Inventories are stated at the lower of cost (using the first-in, first-out (FIFO) method) or net realizable value. Cost includes material, labor, and overhead. |
Fixed Assets | Fixed Assets Fixed assets which are owned are stated at cost less accumulated depreciation, and are depreciated on a straight-line basis over the estimated useful lives of the properties and equipment. Leasehold improvements and leased equipment are amortized over the shorter of the lives of the leases or the underlying assets. Maintenance and repair costs that do not improve service potential or extend economic life are expensed as incurred. |
Warranty | Warranty The Company provides warranty terms based upon the type of product sold. The Company estimates the warranty accrual based upon various factors, including historical warranty costs, current trends, product mix, and sales. The accounting for warranty accruals requires the Company to make assumptions and judgments, and to the extent actual results differ from original estimates, adjustments to recorded accruals may be required. See Note 6 - Accrued Expenses and Other Current Liabilities for further detail. |
Income Taxes | Income Taxes Deferred tax assets and liabilities are determined based on the temporary differences between the financial reporting and tax basis of assets and liabilities, applying enacted statutory tax rates in effect for the year in which the differences are expected to reverse. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all the deferred tax assets will not be realized. The Tax Cuts and Jobs Act (the “TCJA”), enacted in 2017, created a new requirement that certain income earned by foreign subsidiaries, known as global intangible low-tax income (“GILTI”), must be included in the gross income of their U.S. shareholder. We have elected to account for GILTI tax in the year the tax is incurred. The Company accounts for uncertainty in tax positions by recognizing in its financial statements the impact of a tax position only if that position is more likely than not of being sustained on audit, based on the technical merits of the position. Further, the Company assesses the tax benefits of the tax positions in its financial statements based on experience with similar tax positions, information obtained during the examination process and the advice of experts. The Company recognizes previously unrecognized tax benefits upon the earlier of the expiration of the period to assess tax in the applicable taxing jurisdiction or when the matter is constructively settled and upon changes in statutes or regulations and new case law or rulings. The Company classifies interest and penalties related to income taxes as a component of income tax expense in its Consolidated Statements of Income. |
Goodwill | Goodwill 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. In 2019 and 2018, the Company assessed qualitative factors of its reporting units to determine whether it was more likely than not the fair value of the reporting unit was less than its carrying amount, including goodwill. The qualitative impairment test consists of an assessment of qualitative factors, including general economic and industry conditions, market share and input costs. |
Other Intangible Assets | Other Intangible Assets Intangible assets with estimable useful lives are amortized over their respective estimated useful lives to their estimated residual values, and reviewed for impairment. Intangible assets are amortized using either an accelerated or straight-line method, whichever best reflects the pattern in which the estimated future economic benefits of the asset will be consumed. The useful lives of intangible assets are determined after considering the expected cash flows and other specific facts and circumstances related to each intangible asset. Intangible assets with indefinite lives are not amortized, but instead are tested for impairment annually in November, or more frequently if certain circumstances indicate a possible impairment may exist. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets Long-lived assets, other than goodwill, are tested for impairment when changes in circumstances indicate their carrying value may not be recoverable. A determination of impairment, if any, is made based on the undiscounted value of estimated future cash flows, salvage value or expected net sales proceeds, depending on the circumstances. Impairment is measured as the excess of the carrying value over the estimated fair value of such assets. |
Environmental Liabilities | Environmental Liabilities Accruals for environmental matters are recorded when it is probable a liability has been incurred and the amount of the liability can be reasonably estimated, based upon current law and existing technologies. These amounts, which are not discounted and are exclusive of claims against potentially responsible third parties, are adjusted periodically as assessment and remediation efforts progress or additional technical or legal information becomes available. Environmental exposures are difficult to assess for numerous reasons, including the identification of new sites, developments at sites resulting from investigatory studies and remedial activities, advances in technology, changes in environmental laws and regulations and their application, the scarcity of reliable data pertaining to identified sites, the difficulty in assessing the involvement and financial capability of other potentially responsible parties and the Company’s ability to obtain contributions from other parties, and the lengthy time periods over which site remediation occurs. It is possible some of these matters (the outcomes of which are subject to various uncertainties) may be resolved unfavorably against the Company, and could materially affect operating results when resolved in future periods. |
Foreign Currency Translation | Foreign Currency Translation The financial statements of the Company’s international subsidiaries generally are measured using the local currency as the functional currency. The translation from the applicable foreign currency to U.S. Dollars is performed for balance sheet accounts using exchange rates in effect at the balance sheet date and for revenue and expense accounts using the weighted average exchange rate for the period. The resulting translation adjustments are recorded in accumulated other comprehensive income (loss) as a component of stockholders’ equity. The Company reflects net foreign exchange transaction gains and losses resulting from the conversion of the transaction currency to functional currency as a component of foreign currency exchange gains or losses in selling, general and administrative expenses in the Consolidated Statements of Income. |
Financial Instruments | Financial Instruments The carrying values of cash and cash equivalents, accounts receivable, derivative instruments, and accounts payable approximate their fair value due to the short-term nature of these instruments. |
Stock-Based Compensation | Stock-Based Compensation All stock-based compensation awards are expensed over their vesting period, based on fair value. For awards having a service-only vesting condition, the Company recognizes stock-based compensation expense on a straight-line basis over the requisite service periods. For awards with a performance vesting condition, which are subject to certain pre-established performance targets, the Company recognizes stock-based compensation expense on a graded-vesting basis to the extent it is probable the performance targets will be met. The fair values of deferred stock units, restricted stock units, restricted stock, and stock awards are based on the market price of the Company’s common stock, all on the date the stock-based awards are granted. |
Revenue recognition | Revenue Recognition The Company recognizes revenue when performance obligations under the terms of contracts with customers are satisfied, which occurs with the transfer of control of the Company’s products. Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring its products to its customers. Sales, value added and other taxes collected concurrent with revenue-producing activities are excluded from revenue. For the majority of product sales, the Company transfers control and recognizes revenue when it ships the product from its facility to its customer. The amount of consideration the Company receives and the revenue recognized varies with sales discounts, volume rebate programs and indexed material pricing. When the Company offers customers retrospective volume rebates, it estimates the expected rebates based on an analysis of historical experience. The Company adjusts its estimate of revenue related to volume rebates at the earlier of when the most likely amount of consideration expected to be received changes or when the consideration becomes fixed. When the Company offers customers prompt pay sales discounts or agrees to variable pricing based on material indices, it estimates the expected discounts or pricing adjustments based on an analysis of historical experience. The Company adjusts its estimate of revenue related to sales discounts and indexed material pricing to the expected value of the consideration to which the Company will be entitled. The Company includes the variable consideration in the transaction price to the extent that it is probable that a significant reversal of cumulative revenue will not occur when the volume, discount or indexed material price uncertainties are resolved. See Note 14 - Segment Reporting for the Company’s disclosures of disaggregated revenue. Shipping and Handling Costs |
Legal Costs | Legal Costs The Company expenses all legal costs associated with litigation as incurred. Legal expenses are included in selling, general and administrative expenses in the Consolidated Statements of Income. |
Fair Value Measurements | Fair Value Measurements Fair value is determined using a hierarchy that has three levels based on the reliability of the inputs used to determine fair value. Level 1 refers to fair values determined based on quoted prices in active markets for identical assets. Level 2 refers to fair values estimated using significant other observable inputs, and Level 3 includes fair values estimated using significant unobservable inputs. |
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 ASU in the first quarter of 2020 and does not expect the adoption of this ASU to have a material impact on its 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 ASU in the first quarter of 2020 and does not expect the adoption of this ASU to have a material impact on its consolidated financial statements. Recently adopted accounting pronouncements In February 2016, the FASB issued ASU 2016-02, Leases, and all related amendments, which established ASC Topic 842 (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 are 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 Consolidated Balance Sheet and recognize the associated lease payments in its 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 10 of the Notes to Consolidated Financial Statements for expanded disclosures required under Topic 842. |
Acquisitions, Goodwill And Ot_2
Acquisitions, Goodwill And Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Acquisitions, Goodwill And Other Intangible Assets [Abstract] | |
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 $ 337,640 Assets Acquired Accounts receivable $ 28,611 Inventories 88,765 Fixed assets 24,036 Customer relationship 112,000 Tradename and other identifiable intangible assets 37,705 Operating lease right-of-use assets 27,925 Other tangible assets 4,060 Liabilities Assumed Accounts payable (18,577) Current portion of operating lease obligations (5,360) Accrued expenses and other current liabilities (10,002) Operating lease obligations (22,565) Deferred taxes (31,877) Total fair value of net assets acquired $ 234,721 Goodwill (not tax deductible) $ 102,919 (in thousands) : Cash consideration $ 40,000 Holdback payment 5,000 Total value of consideration given $ 45,000 Customer relationship and other identifiable intangible assets $ 7,030 Net tangible assets 520 Total fair value of net assets acquired $ 7,550 Goodwill (tax deductible) $ 37,450 (in thousands) : Cash consideration, net of cash acquired $ 43,224 Customer relationship and other identifiable intangible assets $ 19,579 Net tangible assets 3,287 Total fair value of net assets acquired $ 22,866 Goodwill (not tax deductible) $ 20,358 |
Summary of Pro Forma Information | The unaudited pro forma information combines the reported results of the Company and CURT but does not reflect any operating efficiencies, cost savings, financing costs, step-up of assets, or other accounting related adjustments resulting from the acquisition. (unaudited) Year Ended December 31, (In thousands, except per share amounts) 2019 2018 Net sales $ 2,639,761 $ 2,735,378 Net income $ 144,878 $ 147,878 Basic net income per common share $ 5.80 $ 5.87 Diluted net income per common share $ 5.77 $ 5.81 |
Schedule of Goodwill | Changes in the carrying amount of goodwill by reportable segment were as follows: (In thousands) OEM Segment Aftermarket Segment Total Net balance – December 31, 2017 $ 109,641 $ 14,542 $ 124,183 Acquisitions – 2018 50,698 5,369 56,067 Other (82) — (82) Net balance – December 31, 2018 160,257 19,911 180,168 Acquisitions – 2019 57,245 115,178 172,423 Other (1,882) 405 (1,477) Net balance – December 31, 2019 $ 215,620 $ 135,494 $ 351,114 |
Schedule of Finite-Lived Intangible Assets | Other intangible assets, by segment, at December 31 were as follows: (In thousands) 2019 2018 OEM Segment $ 164,047 $ 159,803 Aftermarket Segment 177,379 16,539 Other intangible assets $ 341,426 $ 176,342 Other intangible assets consisted of the following at December 31, 2019: (In thousands) Gross Accumulated Net Estimated Useful Customer relationships $ 319,934 $ 69,008 $ 250,926 6 to 17 Patents 76,206 44,611 31,595 3 to 19 Trade names (finite life) 50,917 7,086 43,831 3 to 20 Trade names (indefinite life) 7,600 — 7,600 Indefinite Non-compete agreements 7,598 4,947 2,651 3 to 6 Other 309 173 136 2 to 12 Purchased research and development 4,687 — 4,687 Indefinite Other intangible assets $ 467,251 $ 125,825 $ 341,426 |
Schedule of Finite-Lived Intangible Assets | 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 |
Schedule of Indefinite-Lived Intangible Assets | Other intangible assets, by segment, at December 31 were as follows: (In thousands) 2019 2018 OEM Segment $ 164,047 $ 159,803 Aftermarket Segment 177,379 16,539 Other intangible assets $ 341,426 $ 176,342 Other intangible assets consisted of the following at December 31, 2019: (In thousands) Gross Accumulated Net Estimated Useful Customer relationships $ 319,934 $ 69,008 $ 250,926 6 to 17 Patents 76,206 44,611 31,595 3 to 19 Trade names (finite life) 50,917 7,086 43,831 3 to 20 Trade names (indefinite life) 7,600 — 7,600 Indefinite Non-compete agreements 7,598 4,947 2,651 3 to 6 Other 309 173 136 2 to 12 Purchased research and development 4,687 — 4,687 Indefinite Other intangible assets $ 467,251 $ 125,825 $ 341,426 |
Schedule of Indefinite-lived Intangible Assets | 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 |
Schedule of Estimated Amortization Expense | Amortization expense related to other intangible assets was as follows for the years ended December 31: (In thousands) 2019 2018 2017 Cost of sales $ 5,200 $ 5,350 $ 5,631 Selling, general and administrative expense 18,558 15,912 13,942 Amortization expense $ 23,758 $ 21,262 $ 19,573 Estimated amortization expense for other intangible assets for the next five years is as follows: (In thousands) 2020 2021 2022 2023 2024 Cost of sales $ 4,469 $ 4,393 $ 4,180 $ 3,321 $ 2,566 Selling, general and administrative expense 28,887 28,372 28,227 27,484 27,038 Amortization expense $ 33,356 $ 32,765 $ 32,407 $ 30,805 $ 29,604 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories consisted of the following at December 31: (In thousands) 2019 2018 Raw materials $ 256,850 $ 284,467 Work in process 23,653 12,291 Finished goods 113,104 43,857 Inventories, net $ 393,607 $ 340,615 |
Fixed Assets (Tables)
Fixed Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Fixed Assets | Fixed assets consisted of the following at December 31: Estimated Useful Life (In thousands) 2019 2018 in Years Land $ 23,868 $ 22,962 Buildings and improvements 185,744 159,805 10 to 40 Leasehold improvements 23,012 16,132 3 to 12 Machinery and equipment 311,554 251,995 3 to 15 Furniture and fixtures 85,901 51,893 3 to 8 Construction in progress 48,288 56,447 Fixed assets, at cost 678,367 559,234 Less accumulated depreciation and amortization 312,058 236,358 Fixed assets, net $ 366,309 $ 322,876 |
Schedule of Depreciation and Amortization of Fixed Assets | Depreciation and amortization of fixed assets was as follows for the years ended December 31: (In thousands) 2019 2018 2017 Cost of sales $ 39,442 $ 35,656 $ 27,042 Selling, general and administrative expenses 12,158 10,608 7,798 Total $ 51,600 $ 46,264 $ 34,840 |
Accrued Expenses And Other Cu_2
Accrued Expenses And Other Current Liabilities (Tables) | 12 Months Ended |
Dec. 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 December 31: (In thousands) 2019 2018 Employee compensation and benefits $ 45,612 $ 33,835 Current portion of accrued warranty 29,898 32,180 Customer rebates 14,129 6,193 Other 42,781 26,424 Accrued expenses and other current liabilities $ 132,420 $ 98,632 |
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 years ended December 31: (In thousands) 2019 2018 2017 Balance at beginning of period $ 46,530 $ 38,502 $ 32,393 Provision for warranty expense 30,520 31,819 25,399 Warranty liability from acquired businesses 287 760 150 Warranty costs paid (30,170) (24,551) (19,440) Balance at end of period 47,167 46,530 38,502 Less long-term portion 17,269 14,350 15,447 Current portion of accrued warranty at end of period $ 29,898 $ 32,180 $ 23,055 |
Long-Term Indebtedness (Tables)
Long-Term Indebtedness (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt | Long-term debt consisted of the following at December 31: (In thousands) 2019 2018 Term Loan $ 300,000 $ — Revolving Credit Loan 266,214 240,060 Shelf-Loan Facility 50,000 50,000 Other 16,349 4,425 Unamortized deferred financing fees (1,774) (361) 630,789 294,124 Less current portion (17,883) (596) Long-term indebtedness $ 612,906 $ 293,528 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax, Domestic and Foreign | The components of earnings before income taxes consisted of the following for the years ended December 31: (In thousands) 2019 2018 2017 United States $ 189,834 $ 191,095 $ 213,967 Foreign 1,580 1,257 (1,123) Total earnings before income taxes $ 191,414 $ 192,352 $ 212,844 |
Schedule of Provisions of Income Taxes | The provision for income taxes in the Consolidated Statements of Income was as follows for the years ended December 31: (In thousands) 2019 2018 2017 Current: Federal $ 33,655 $ 22,297 $ 62,274 State and local 6,764 6,416 10,720 Foreign 1,070 1,214 158 Total current provision 41,489 29,927 73,152 Deferred: Federal 5,923 12,478 7,614 State and local (969) 1,639 (806) Foreign (1,538) (243) — Total deferred provision 3,416 13,874 6,808 Provision for income taxes $ 44,905 $ 43,801 $ 79,960 |
Schedule of Income Tax Reconciliation | The provision for income taxes differs from the amount computed by applying the federal statutory rate of 21 percent for 2019 and 2018 and 35 percent for 2017 to income before income taxes for the following reasons for the years ended December 31: (In thousands) 2019 2018 2017 Income tax at federal statutory rate $ 40,197 $ 40,394 $ 74,495 State income tax, net of federal income tax impact 4,578 6,261 6,011 Domestic production deduction — — (5,511) Share-based payment compensation excess tax benefit (1,579) (2,914) (7,683) Changes in tax law (TCJA) — 612 13,210 Other 1,709 (552) (562) Provision for income taxes $ 44,905 $ 43,801 $ 79,960 |
Schedule of Deferred Tax Assets and Liabilities | The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities were as follows at December 31: (In thousands) 2019 2018 Deferred tax assets: Goodwill and other intangible assets $ — $ 3,854 Stock-based compensation 2,290 2,956 Deferred compensation 5,976 6,710 Warranty 11,246 10,931 Inventory 8,001 6,375 Other 2,585 3,454 Lease obligation asset 25,055 822 Net operating loss and interest carryforwards 7,352 1,467 Total deferred tax assets before valuation allowance 62,505 36,569 Less: Valuation allowance (1,662) (1,261) Total deferred tax assets net of valuation allowance 60,843 35,308 Deferred tax liabilities: Lease obligation liability (24,368) — Fixed assets (27,898) (24,360) Intangible assets (44,317) (8,501) Total deferred tax liabilities (96,583) (32,861) Net deferred tax (liabilities) assets $ (35,740) $ 2,447 |
Schedule of Unrecognized Tax Benefits | The following table reconciles the total amounts of unrecognized tax benefits, at December 31: (In thousands) 2019 2018 2017 Balance at beginning of period $ 4,325 $ 4,145 $ 3,747 Changes in tax positions of prior years 480 114 (174) Additions based on tax positions related to the current year 4,288 802 1,255 Payments — — (211) Closure of tax years (879) (736) (472) Balance at end of period $ 8,214 $ 4,325 $ 4,145 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Components of Lease Cost | The components of lease cost for the year ended December 31, 2019 were as follows: (in thousands) Operating lease cost $ 21,899 Short-term lease cost 2,611 Variable lease cost 1,781 Total lease cost $ 26,291 |
Schedule of Operating Lease Liability Maturity | Future minimum lease payments under operating leases as of December 31, 2019 were as follows: (in thousands) Year Ending December 31, 2020 $ 26,764 2021 23,042 2022 17,031 2023 11,951 2024 10,477 Thereafter 33,077 Total future minimum lease payments (a) 122,342 Less: Interest (20,801) Present value of operating lease liabilities $ 101,541 (a) Refer to the Company’s 2018 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) | 12 Months Ended |
Dec. 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 years ended December 31: (In thousands) 2019 2018 2017 Balance at beginning of period $ 7,302 $ 12,545 $ 9,241 Acquisitions — 43 7,288 Payments (10) (4,803) (7,682) Accretion (a) 792 951 1,652 Fair value adjustments (a) (b) (3,691) (944) 1257 Net foreign currency translation adjustment 3 (490) 789 Balance at end of the period (c) 4,396 7,302 12,545 Less current portion in accrued expenses and other current liabilities (2,351) (17) (4,658) Total long-term portion in other long-term liabilities $ 2,045 $ 7,285 $ 7,887 g. Recorded in selling, general and administrative expenses in the Consolidated Statements of Income. h. Includes adjustments to assumptions on weighted average cost of capital and relevant sales projections. i. Amounts represent the fair value of estimated remaining payments. The total estimated remaining undiscounted payments as of December 31, 2019 were $5.6 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) | 12 Months Ended |
Dec. 31, 2019 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Dividends Declared and Paid | The table below summarizes the regular quarterly dividends declared and paid during the years ended December 31, 2019, 2018, and 2017: (In thousands, except per share data) Per Share Record Date Payment Date Total Paid First Quarter 2017 $ 0.50 03/06/17 03/17/17 $ 12,442 Second Quarter 2017 0.50 05/19/17 06/02/17 12,445 Third Quarter 2017 0.50 08/18/17 09/01/17 12,459 Fourth Quarter 2017 0.55 11/17/17 12/01/17 13,711 Total 2017 $ 2.05 $ 51,057 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 Second Quarter 2019 0.65 06/07/19 06/21/19 16,267 Third Quarter 2019 0.65 09/06/19 09/20/19 16,267 Fourth Quarter 2019 0.65 12/06/19 12/20/19 16,280 Total 2019 $ 2.55 $ 63,813 |
Schedule of Stock-Based Compensation | Stock-based compensation resulted in charges to operations as follows for the years ended December 31: (In thousands) 2019 2018 2017 Deferred and restricted stock units $ 14,342 $ 12,427 $ 10,696 Restricted stock — 590 1,191 Stock awards 1,735 1,048 8,149 Stock-based compensation expense $ 16,077 $ 14,065 $ 20,036 |
Schedule of Deferred Stock Units Transactions | Transactions in DSUs and RSUs under the 2011 Plan or the 2018 Plan, as applicable, are summarized as follows: Number of Shares Weighted Average Price Outstanding at December 31, 2016 506,447 $ 50.00 Issued 68,340 108.61 Granted 95,079 109.50 Dividend equivalents 9,799 104.12 Forfeited (3,094) 72.96 Vested (227,516) 40.39 Outstanding at December 31, 2017 449,055 $ 72.55 Issued 5,354 106.10 Granted 101,650 103.20 Dividend equivalents 8,036 89.66 Forfeited (9,557) 76.71 Vested (290,132) 74.83 Outstanding at December 31, 2018 264,406 $ 83.84 Issued 6,073 89.82 Granted 252,068 81.07 Dividend equivalents 10,243 89.65 Forfeited (9,079) 89.67 Vested (177,563) 69.65 Outstanding at December 31, 2019 346,148 $ 87.54 |
Schedule of Stock Awards | Transactions under the 2011 Plan or the 2018 Plan, as applicable, are summarized as follows: Number of Shares Stock Price Outstanding at December 31, 2016 232,622 $ 55.60 Granted 103,382 90.36 Dividend equivalents 5,249 104.93 Vested (69,434) 51.20 Outstanding at December 31, 2017 271,819 $ 70.29 Issued 5,641 106.10 Granted 111,246 106.10 Dividend equivalents 6,280 90.47 Forfeited (71,618) 86.65 Vested (136,000) 64.32 Outstanding at December 31, 2018 187,368 $ 91.39 Granted 48,995 78.11 Dividend equivalents 3,658 67.03 Forfeited (8,459) 106.10 Vested (102,434) 77.93 Outstanding at December 31, 2019 129,128 $ 96.21 |
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 for the years ended December 31: (In thousands) 2019 2018 2017 Weighted average shares outstanding for basic earnings per share 24,998 25,178 25,020 Common stock equivalents pertaining to stock-based awards 95 285 355 Weighted average shares outstanding for diluted earnings per share 25,093 25,463 25,375 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following table presents the Company’s liabilities measured at fair value on a recurring basis at December 31: 2019 2018 (In thousands) Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Liabilities Contingent consideration $ 4,396 $ — $ — $ 4,396 $ 7,302 $ — $ — $ 7,302 Derivative liabilities 679 — 679 — 1,108 — 1,108 — |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Net Sales by Product | The following tables presents the Company’s revenues disaggregated by segment and geography based on the billing address of the Company’s customers for the years ended December 31: 2019 (In thousands) U.S. (a) Int’l (b) Total OEM Segment: RV OEMs: Travel trailers and fifth-wheels $ 1,264,404 $ 12,314 $ 1,276,718 Motorhomes 110,405 45,218 155,623 Adjacent Industries OEMs 587,521 72,039 659,560 Total OEM Segment net sales 1,962,330 129,571 2,091,901 Aftermarket Segment: Total Aftermarket Segment net sales 263,382 16,199 279,581 Total net sales $ 2,225,712 $ 145,770 $ 2,371,482 2018 (In thousands) U.S. (a) Int’l (b) Total OEM Segment: RV OEMs: Travel trailers and fifth-wheels $ 1,431,574 $ 9,156 $ 1,440,730 Motorhomes 143,488 43,809 187,297 Adjacent Industries OEMs 574,100 40,489 614,589 Total OEM Segment net sales 2,149,162 93,454 2,242,616 Aftermarket Segment: Total Aftermarket Segment net sales 222,588 10,603 233,191 Total net sales $ 2,371,750 $ 104,057 $ 2,475,807 2017 (In thousands) U.S. (a) Int’l (b) Total OEM Segment: RV OEMs: Travel trailers and fifth-wheels $ 1,403,079 $ 2,904 $ 1,405,983 Motorhomes 138,895 20,522 159,417 Adjacent Industries OEMs 398,919 12,304 411,223 Total OEM Segment net sales 1,940,893 35,730 1,976,623 Aftermarket Segment: Total Aftermarket Segment net sales 160,637 10,510 171,147 Total net sales $ 2,101,530 $ 46,240 $ 2,147,770 (a) Net sales to customers in the United States of America (b) Net sales to customers domiciled in countries outside of the United States of America |
Schedule of Net Sales by Geographic Areas | The following tables presents the Company’s revenues disaggregated by segment and geography based on the billing address of the Company’s customers for the years ended December 31: 2019 (In thousands) U.S. (a) Int’l (b) Total OEM Segment: RV OEMs: Travel trailers and fifth-wheels $ 1,264,404 $ 12,314 $ 1,276,718 Motorhomes 110,405 45,218 155,623 Adjacent Industries OEMs 587,521 72,039 659,560 Total OEM Segment net sales 1,962,330 129,571 2,091,901 Aftermarket Segment: Total Aftermarket Segment net sales 263,382 16,199 279,581 Total net sales $ 2,225,712 $ 145,770 $ 2,371,482 2018 (In thousands) U.S. (a) Int’l (b) Total OEM Segment: RV OEMs: Travel trailers and fifth-wheels $ 1,431,574 $ 9,156 $ 1,440,730 Motorhomes 143,488 43,809 187,297 Adjacent Industries OEMs 574,100 40,489 614,589 Total OEM Segment net sales 2,149,162 93,454 2,242,616 Aftermarket Segment: Total Aftermarket Segment net sales 222,588 10,603 233,191 Total net sales $ 2,371,750 $ 104,057 $ 2,475,807 2017 (In thousands) U.S. (a) Int’l (b) Total OEM Segment: RV OEMs: Travel trailers and fifth-wheels $ 1,403,079 $ 2,904 $ 1,405,983 Motorhomes 138,895 20,522 159,417 Adjacent Industries OEMs 398,919 12,304 411,223 Total OEM Segment net sales 1,940,893 35,730 1,976,623 Aftermarket Segment: Total Aftermarket Segment net sales 160,637 10,510 171,147 Total net sales $ 2,101,530 $ 46,240 $ 2,147,770 (a) Net sales to customers in the United States of America (b) Net sales to customers domiciled in countries outside of the United States of America |
Schedule of Information Relating to Segments | Information relating to segments follows for the years ended December 31: Segments Corporate (In thousands) OEM Aftermarket Subtotal and Other Total 2019 Net sales to external customers (a) $ 2,091,901 $ 279,581 $ 2,371,482 $ — $ 2,371,482 Operating profit (b) 165,290 34,920 200,210 — 200,210 Total assets (c) 1,167,899 595,688 1,763,587 99,008 1,862,595 Expenditures for long-lived assets (d) 166,331 302,857 469,188 — 469,188 Depreciation and amortization 70,136 5,222 75,358 — 75,358 Segments Corporate (In thousands) OEM Aftermarket Subtotal and Other Total 2018 Net sales to external customers (a) $ 2,242,616 $ 233,191 $ 2,475,807 $ — $ 2,475,807 Operating profit (b) 167,459 31,329 198,788 — 198,788 Total assets (c) 1,034,254 129,776 1,164,030 79,863 1,243,893 Expenditures for long-lived assets (d) 247,895 20,544 268,439 — 268,439 Depreciation and amortization 63,447 4,079 67,526 — 67,526 2017 Net sales to external customers (a) $ 1,976,623 $ 171,147 $ 2,147,770 $ — $ 2,147,770 Operating profit (b) 190,276 24,005 214,281 — 214,281 Total assets (c) 785,926 76,309 862,235 83,623 945,858 Expenditures for long-lived assets (d) 148,570 4,875 153,445 — 153,445 Depreciation and amortization 50,751 3,662 54,413 314 54,727 (a) Thor Industries, Inc. (“Thor”), a customer of both segments, accounted for 27 percent, 31 percent, and 38 percent of the Company’s consolidated net sales for the years ended December 31, 2019, 2018, and 2017, respectively. Berkshire Hathaway Inc. (through its subsidiaries Forest River, Inc. and Clayton Homes, Inc.), a customer of both segments, accounted for 21 percent, 23 percent, and 25 percent of the Company’s consolidated net sales for the years ended December 31, 2019, 2018, and 2017, respectively. No other customer accounted for more than 10 percent of consolidated net sales in the years ended December 31, 2019, 2018, and 2017. (b) Certain general and administrative expenses are allocated between the segments based upon net sales or operating profit, depending upon the nature of the expense. (c) Segment assets include accounts receivable, inventories, fixed assets, goodwill and other intangible assets. Corporate and other assets include cash and cash equivalents, prepaid expenses and other current assets, deferred taxes, and other assets. (d) Expenditures for long-lived assets include capital expenditures, as well as fixed assets, goodwill and other intangible assets purchased as part of the acquisition of businesses. The Company purchased $395.6 million, $150.9 million, and $65.0 million of long-lived assets, as part of the acquisitions of businesses in the years ended December 31, 2019, 2018, and 2017, respectively. |
Schedule of Net Sales by Segment Product | Net sales by OEM Segment product were as follows for the years ended December 31: (In thousands) 2019 2018 2017 OEM Segment: Chassis, chassis parts, and slide-out mechanisms $ 796,434 $ 908,065 $ 914,397 Windows and doors 585,464 615,644 424,625 Furniture and mattresses 342,691 380,514 342,680 Axles and suspension solutions 129,471 122,897 123,513 Other 237,841 215,496 171,408 Total OEM Segment net sales 2,091,901 2,242,616 1,976,623 Total Aftermarket Segment net sales 279,581 233,191 171,147 Total net sales $ 2,371,482 $ 2,475,807 $ 2,147,770 |
Quarterly Results Of Operatio_2
Quarterly Results Of Operations (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Results of Operations | Interim unaudited financial information follows: (In thousands, except per share amounts) First Quarter Second Quarter Third Quarter Fourth Quarter Year Year ended December 31, 2019 Net sales $ 592,172 $ 629,068 $ 586,221 $ 564,021 $ 2,371,482 Gross profit 132,594 148,653 135,473 122,482 539,202 Income before income taxes 45,248 63,558 47,253 35,355 191,414 Net income 34,366 47,527 35,809 28,807 146,509 Net income per common share: Basic $ 1.38 $ 1.90 $ 1.43 $ 1.15 $ 5.86 Diluted $ 1.38 $ 1.89 $ 1.42 $ 1.14 $ 5.84 Stock market price: High $ 86.13 $ 97.77 $ 95.52 $ 109.79 $ 109.79 Low $ 64.70 $ 75.59 $ 92.93 $ 87.15 $ 64.70 Close (at end of quarter) $ 76.82 $ 90.00 $ 91.85 $ 107.13 $ 107.13 Year ended December 31, 2018 Net sales $ 650,492 $ 684,455 $ 604,244 $ 536,616 $ 2,475,807 Gross profit 140,733 150,456 125,901 103,254 520,344 Income before income taxes 58,719 62,428 43,633 27,572 192,352 Net income 47,336 47,224 33,812 20,179 148,551 Net income per common share: Basic $ 1.88 $ 1.87 $ 1.34 $ 0.80 $ 5.90 Diluted $ 1.86 $ 1.86 $ 1.33 $ 0.80 $ 5.83 Stock market price: High $ 132.30 $ 104.90 $ 102.23 $ 80.89 $ 132.30 Low $ 99.46 $ 80.95 $ 98.40 $ 59.68 $ 59.68 Close (at end of quarter) $ 104.15 $ 90.15 $ 69.35 $ 66.80 $ 66.80 |
Basis of Presentation (Details)
Basis of Presentation (Details) | 12 Months Ended |
Dec. 31, 2019subsidiary | |
Property, Plant and Equipment [Line Items] | |
Number of unconsolidated subsidiaries | 0 |
Manufacturing Facility | |
Property, Plant and Equipment [Line Items] | |
Number of manufacturing facilities | 90 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2019 | |
Property, Plant and Equipment [Line Items] | ||||
Operating lease right-of-use assets | $ 98,774 | $ 0 | $ 66,400 | |
Present value of operating lease liabilities | 101,541 | 69,000 | ||
Cash outflow from operations | 269,525 | 156,608 | $ 152,702 | |
Cash outflow from financing activities | 254,971 | 135,066 | (66,948) | |
Accounting Standards Update 2016-15 | ||||
Property, Plant and Equipment [Line Items] | ||||
Cash outflow from operations | 2,400 | 1,700 | ||
Cash outflow from financing activities | (2,400) | (1,700) | ||
Selling, General and Administrative Expenses | ||||
Property, Plant and Equipment [Line Items] | ||||
Shipping, and handling costs | $ 77,300 | $ 83,200 | $ 68,600 | |
Minimum | Accounting Standards Update 2016-02 | ||||
Property, Plant and Equipment [Line Items] | ||||
Operating lease right-of-use assets | 65,000 | |||
Present value of operating lease liabilities | 60,000 | |||
Maximum | Accounting Standards Update 2016-02 | ||||
Property, Plant and Equipment [Line Items] | ||||
Operating lease right-of-use assets | 75,000 | |||
Present value of operating lease liabilities | $ 75,000 |
Acquisitions, Goodwill And Ot_3
Acquisitions, Goodwill And Other Intangible Assets (Narrative) (Details) $ in Thousands | Nov. 30, 2018USD ($) | Jan. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Nov. 30, 2019USD ($) | Aug. 31, 2019USD ($) | Jun. 30, 2018USD ($) | Feb. 28, 2018USD ($) | Jan. 31, 2018USD ($) | Jun. 30, 2017USD ($) | May 31, 2017USD ($) | Feb. 28, 2017USD ($) | Dec. 31, 2019USD ($)businessAcquired | Dec. 31, 2018USD ($) | Jun. 30, 2019 | Dec. 31, 2017USD ($) |
Business Acquisition | |||||||||||||||
Acquisition related costs expensed | $ 1,000 | ||||||||||||||
Goodwill | $ 351,114 | $ 351,114 | $ 180,168 | $ 124,183 | |||||||||||
Polyplastic | Subsequent Event | |||||||||||||||
Business Acquisition | |||||||||||||||
Percentage of outstanding shares acquired | 100.00% | ||||||||||||||
Purchase price | $ 97,600 | ||||||||||||||
CURT | |||||||||||||||
Business Acquisition | |||||||||||||||
Percentage of outstanding shares acquired | 100.00% | 100.00% | |||||||||||||
Purchase price | $ 337,600 | ||||||||||||||
Acquisition related costs | 20,200 | $ 20,200 | |||||||||||||
Goodwill | $ 102,919 | 102,919 | |||||||||||||
CURT | Customer relationships | |||||||||||||||
Business Acquisition | |||||||||||||||
Weighted average useful life of acquired intangible assets | 17 years | ||||||||||||||
CURT | Trade name | |||||||||||||||
Business Acquisition | |||||||||||||||
Weighted average useful life of acquired intangible assets | 20 years | ||||||||||||||
PWR-ARM | |||||||||||||||
Business Acquisition | |||||||||||||||
Purchase price | $ 45,000 | ||||||||||||||
Weighted average useful life of acquired intangible assets | 5 years | ||||||||||||||
Holdback payment | $ 5,000 | ||||||||||||||
Goodwill | 37,450 | ||||||||||||||
Cash consideration | $ 40,000 | ||||||||||||||
Lewmar Marine Limited | |||||||||||||||
Business Acquisition | |||||||||||||||
Percentage of outstanding shares acquired | 100.00% | ||||||||||||||
Purchase price | $ 43,200 | ||||||||||||||
Weighted average useful life of acquired intangible assets | 15 years | ||||||||||||||
Goodwill | $ 20,358 | ||||||||||||||
Other Acquisitions | |||||||||||||||
Business Acquisition | |||||||||||||||
Purchase price | $ 28,300 | ||||||||||||||
Number of Businesses Acquired | businessAcquired | 4 | ||||||||||||||
Goodwill | $ 11,600 | $ 11,600 | |||||||||||||
Goodwill, not tax deductible | 5,800 | 5,800 | |||||||||||||
Smoker Craft | |||||||||||||||
Business Acquisition | |||||||||||||||
Purchase price | $ 28,100 | ||||||||||||||
STLA | |||||||||||||||
Business Acquisition | |||||||||||||||
Percentage of outstanding shares acquired | 100.00% | ||||||||||||||
Purchase price | $ 14,800 | ||||||||||||||
Hehr | |||||||||||||||
Business Acquisition | |||||||||||||||
Cash consideration | $ 51,500 | ||||||||||||||
Taylor Made | |||||||||||||||
Business Acquisition | |||||||||||||||
Percentage of outstanding shares acquired | 100.00% | ||||||||||||||
Cash consideration | $ 90,400 | ||||||||||||||
Metallarte S.r.l. | |||||||||||||||
Business Acquisition | |||||||||||||||
Percentage of outstanding shares acquired | 100.00% | ||||||||||||||
Cash consideration | $ 14,100 | ||||||||||||||
Lexington | |||||||||||||||
Business Acquisition | |||||||||||||||
Purchase price | $ 40,100 | ||||||||||||||
Sessa Klein S.p.A. | |||||||||||||||
Business Acquisition | |||||||||||||||
Percentage of outstanding shares acquired | 100.00% | ||||||||||||||
Cash consideration | $ 6,500 | ||||||||||||||
OEM Segment | |||||||||||||||
Business Acquisition | |||||||||||||||
Goodwill | 215,620 | 215,620 | 160,257 | 109,641 | |||||||||||
Operating Segments | OEM Segment | |||||||||||||||
Business Acquisition | |||||||||||||||
Accumulated impairment | $ 50,500 | 50,500 | 50,500 | $ 50,500 | |||||||||||
Acquisition-related Costs | CURT | |||||||||||||||
Business Acquisition | |||||||||||||||
Goodwill adjustment | 5,200 | 5,000 | |||||||||||||
Interest expense | $ 14,800 | $ 14,000 |
Acquisitions, Goodwill And Ot_4
Acquisitions, Goodwill And Other Intangible Assets (Schedule of Business Acquisitions) (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||||
Dec. 31, 2019 | Nov. 30, 2019 | Aug. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Business Acquisition | ||||||
Cash consideration, net of cash acquired | $ 447,764 | $ 184,792 | $ 60,588 | |||
Assets Acquired | ||||||
Operating lease right-of-use assets | $ 34,300 | 34,300 | ||||
Liabilities Assumed | ||||||
Goodwill | 351,114 | 351,114 | $ 180,168 | $ 124,183 | ||
CURT | ||||||
Business Acquisition | ||||||
Cash consideration, net of cash acquired | 337,640 | |||||
Total value of consideration given | 337,600 | |||||
Assets Acquired | ||||||
Accounts receivable | 28,611 | 28,611 | ||||
Inventories | 88,765 | 88,765 | ||||
Fixed assets | 24,036 | 24,036 | ||||
Operating lease right-of-use assets | 27,925 | 27,925 | ||||
Other tangible assets | 4,060 | 4,060 | ||||
Liabilities Assumed | ||||||
Accounts payable | (18,577) | (18,577) | ||||
Current portion of operating lease obligations | (5,360) | (5,360) | ||||
Accrued expenses and other current liabilities | (10,002) | (10,002) | ||||
Operating lease obligations | (22,565) | (22,565) | ||||
Deferred taxes | (31,877) | (31,877) | ||||
Total fair value of net assets acquired | 234,721 | 234,721 | ||||
Goodwill | 102,919 | 102,919 | ||||
PWR-ARM | ||||||
Business Acquisition | ||||||
Cash consideration | $ 40,000 | |||||
Holdback payment | 5,000 | |||||
Total value of consideration given | 45,000 | |||||
Assets Acquired | ||||||
Identifiable intangible assets | 7,030 | |||||
Other tangible assets | 520 | |||||
Liabilities Assumed | ||||||
Total fair value of net assets acquired | 7,550 | |||||
Goodwill | $ 37,450 | |||||
Lewmar Marine Limited | ||||||
Business Acquisition | ||||||
Cash consideration, net of cash acquired | $ 43,224 | |||||
Total value of consideration given | 43,200 | |||||
Assets Acquired | ||||||
Identifiable intangible assets | 19,579 | |||||
Other tangible assets | 3,287 | |||||
Liabilities Assumed | ||||||
Total fair value of net assets acquired | 22,866 | |||||
Goodwill | $ 20,358 | |||||
Customer relationships | CURT | ||||||
Assets Acquired | ||||||
Identifiable intangible assets | 112,000 | 112,000 | ||||
Trade name | CURT | ||||||
Assets Acquired | ||||||
Identifiable intangible assets | $ 37,705 | $ 37,705 |
Acquisitions, Goodwill And Ot_5
Acquisitions, Goodwill And Other Intangible Assets (Pro Forma Information) (Details) - CURT - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Business Acquisition | ||
Net sales | $ 2,639,761 | $ 2,735,378 |
Net income | $ 144,878 | $ 147,878 |
Basic net income per common share (in dollars per share) | $ 5.80 | $ 5.87 |
Diluted net income per common share (in dollars per share) | $ 5.77 | $ 5.81 |
Acquisitions, Goodwill And Ot_6
Acquisitions, Goodwill And Other Intangible Assets (Schedule of Goodwill) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill | ||
Net balance, Beginning | $ 180,168 | $ 124,183 |
Acquisitions | 172,423 | 56,067 |
Other | (1,477) | (82) |
Net balance, Ending | 351,114 | 180,168 |
OEM Segment | ||
Goodwill | ||
Net balance, Beginning | 160,257 | 109,641 |
Acquisitions | 57,245 | 50,698 |
Other | (1,882) | (82) |
Net balance, Ending | 215,620 | 160,257 |
Aftermarket Segment | ||
Goodwill | ||
Net balance, Beginning | 19,911 | 14,542 |
Acquisitions | 115,178 | 5,369 |
Other | 405 | 0 |
Net balance, Ending | $ 135,494 | $ 19,911 |
Acquisitions, Goodwill And Ot_7
Acquisitions, Goodwill And Other Intangible Assets (Schedule of Other Intangible Assets) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Finite-Lived Intangible Assets | ||
Accumulated amortization | $ 125,825 | $ 104,764 |
Total gross cost | 467,251 | 281,106 |
Total net balance | 341,426 | 176,342 |
OEM Segment | ||
Finite-Lived Intangible Assets | ||
Total net balance | 164,047 | 159,803 |
Aftermarket Segment | ||
Finite-Lived Intangible Assets | ||
Total net balance | 177,379 | 16,539 |
Purchased Research and Development | ||
Finite-Lived Intangible Assets | ||
Gross cost and net balance | 4,687 | 4,687 |
Trade name | ||
Finite-Lived Intangible Assets | ||
Gross cost and net balance | 7,600 | 7,600 |
Customer relationships | ||
Finite-Lived Intangible Assets | ||
Gross cost | 319,934 | 191,919 |
Accumulated amortization | 69,008 | 54,889 |
Net balance | $ 250,926 | $ 137,030 |
Customer relationships | Minimum | ||
Finite-Lived Intangible Assets | ||
Estimated useful life in years | 6 years | 6 years |
Customer relationships | Maximum | ||
Finite-Lived Intangible Assets | ||
Estimated useful life in years | 17 years | 16 years |
Patents | ||
Finite-Lived Intangible Assets | ||
Gross cost | $ 76,206 | $ 58,787 |
Accumulated amortization | 44,611 | 40,079 |
Net balance | $ 31,595 | $ 18,708 |
Patents | Minimum | ||
Finite-Lived Intangible Assets | ||
Estimated useful life in years | 3 years | 3 years |
Patents | Maximum | ||
Finite-Lived Intangible Assets | ||
Estimated useful life in years | 19 years | 19 years |
Trade name | ||
Finite-Lived Intangible Assets | ||
Gross cost | $ 50,917 | $ 10,885 |
Accumulated amortization | 7,086 | 5,507 |
Net balance | $ 43,831 | $ 5,378 |
Trade name | Minimum | ||
Finite-Lived Intangible Assets | ||
Estimated useful life in years | 3 years | 3 years |
Trade name | Maximum | ||
Finite-Lived Intangible Assets | ||
Estimated useful life in years | 20 years | 15 years |
Non-compete agreements | ||
Finite-Lived Intangible Assets | ||
Gross cost | $ 7,598 | $ 6,919 |
Accumulated amortization | 4,947 | 4,148 |
Net balance | $ 2,651 | $ 2,771 |
Non-compete agreements | Minimum | ||
Finite-Lived Intangible Assets | ||
Estimated useful life in years | 3 years | 3 years |
Non-compete agreements | Maximum | ||
Finite-Lived Intangible Assets | ||
Estimated useful life in years | 6 years | 6 years |
Other | ||
Finite-Lived Intangible Assets | ||
Gross cost | $ 309 | $ 309 |
Accumulated amortization | 173 | 141 |
Net balance | $ 136 | $ 168 |
Other | Minimum | ||
Finite-Lived Intangible Assets | ||
Estimated useful life in years | 2 years | 2 years |
Other | Maximum | ||
Finite-Lived Intangible Assets | ||
Estimated useful life in years | 12 years | 12 years |
Acquisitions, Goodwill And Ot_8
Acquisitions, Goodwill And Other Intangible Assets (Summary of Estimated Amortization Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Finite-Lived Intangible Assets | |||
Amortization expense | $ 23,758 | $ 21,262 | $ 19,573 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity | |||
2019 | 33,356 | ||
2020 | 32,765 | ||
2021 | 32,407 | ||
2022 | 30,805 | ||
2023 | 29,604 | ||
Cost of Sales | |||
Finite-Lived Intangible Assets | |||
Amortization expense | 5,200 | 5,350 | 5,631 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity | |||
2019 | 4,469 | ||
2020 | 4,393 | ||
2021 | 4,180 | ||
2022 | 3,321 | ||
2023 | 2,566 | ||
Selling, General and Administrative Expenses | |||
Finite-Lived Intangible Assets | |||
Amortization expense | 18,558 | $ 15,912 | $ 13,942 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity | |||
2019 | 28,887 | ||
2020 | 28,372 | ||
2021 | 28,227 | ||
2022 | 27,484 | ||
2023 | $ 27,038 |
Inventories (Schedule of Invent
Inventories (Schedule of Inventories) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 256,850 | $ 284,467 |
Work in process | 23,653 | 12,291 |
Finished goods | 113,104 | 43,857 |
Inventories, net | $ 393,607 | $ 340,615 |
Fixed Assets (Schedule of Fixed
Fixed Assets (Schedule of Fixed Assets) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Property, Plant and Equipment [Line Items] | ||
Fixed assets, at cost | $ 678,367 | $ 559,234 |
Less accumulated depreciation and amortization | 312,058 | 236,358 |
Fixed assets, net | 366,309 | 322,876 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Fixed assets, at cost | 23,868 | 22,962 |
Buildings and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Fixed assets, at cost | 185,744 | 159,805 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Fixed assets, at cost | 23,012 | 16,132 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Fixed assets, at cost | 311,554 | 251,995 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Fixed assets, at cost | 85,901 | 51,893 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Fixed assets, at cost | $ 48,288 | $ 56,447 |
Minimum | Buildings and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life in years | 10 years | |
Minimum | Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life in years | 3 years | |
Minimum | Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life in years | 3 years | |
Minimum | Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life in years | 3 years | |
Maximum | Buildings and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life in years | 40 years | |
Maximum | Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life in years | 10 years | |
Maximum | Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life in years | 15 years | |
Maximum | Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life in years | 8 years |
Fixed Assets (Schedule of Depre
Fixed Assets (Schedule of Depreciation and Amortization of Fixed Assets) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |||
Cost of sales | $ 39,442 | $ 35,656 | $ 27,042 |
Selling, general and administrative expenses | 12,158 | 10,608 | 7,798 |
Total | $ 51,600 | $ 46,264 | $ 34,840 |
Accrued Expenses And Other Cu_3
Accrued Expenses And Other Current Liabilities (Schedule of Accrued Expenses and Other Current Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Payables and Accruals [Abstract] | |||
Employee compensation and benefits | $ 45,612 | $ 33,835 | |
Current portion of accrued warranty | 29,898 | 32,180 | $ 23,055 |
Customer rebates | 14,129 | 6,193 | |
Other | 42,781 | 26,424 | |
Accrued expenses and other current liabilities | $ 132,420 | $ 98,632 |
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 | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Movement in Standard and Extended Product Warranty, Increase (Decrease) | |||
Balance at beginning of period | $ 46,530 | $ 38,502 | $ 32,393 |
Provision for warranty expense | 30,520 | 31,819 | 25,399 |
Warranty liability from acquired businesses | 287 | 760 | 150 |
Warranty costs paid | (30,170) | (24,551) | (19,440) |
Balance at end of period | 47,167 | 46,530 | 38,502 |
Less long-term portion | 17,269 | 14,350 | 15,447 |
Current portion of accrued warranty | $ 29,898 | $ 32,180 | $ 23,055 |
Retirement And Other Benefit _2
Retirement And Other Benefit Plans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Retirement Benefits [Abstract] | |||
Employer contributions to defined contribution plan | $ 7,700 | $ 6,800 | $ 4,200 |
Deferred Compensation Arrangement with Individual, Postretirement Benefits | |||
Other long-term liabilities | 62,171 | 58,027 | |
Accrued expenses and other current liabilities | $ 42,781 | 26,424 | |
Deferred compensation, percentage of funds invested | 99.00% | ||
Deferred Compensation | |||
Deferred Compensation Arrangement with Individual, Postretirement Benefits | |||
Compensation deferred by participants | $ 900 | 6,900 | 4,900 |
Amount withdrawn from the Plan by participants | 1,700 | 200 | $ 200 |
Other long-term liabilities | 30,300 | 25,900 | |
Accrued expenses and other current liabilities | 200 | 400 | |
Life insurance contract assets | $ 30,100 | $ 22,200 |
Long-Term Indebtedness (Schedul
Long-Term Indebtedness (Schedule) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Unamortized deferred financing fees | $ (1,774) | $ (361) |
Long-term debt, net | 630,789 | 294,124 |
Less current portion | 17,883 | 596 |
Long-term debt | 612,906 | 293,528 |
Term Loan | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 300,000 | 0 |
Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 266,214 | 240,060 |
Shelf-Loan Facility | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 50,000 | 50,000 |
Other Debt | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 16,349 | $ 4,425 |
Long-Term Indebtedness (Narrati
Long-Term Indebtedness (Narrative) (Details) € in Millions | Dec. 19, 2019USD ($) | Mar. 29, 2019USD ($) | Apr. 27, 2016USD ($) | Mar. 20, 2015USD ($) | Dec. 31, 2019EUR (€) | Dec. 31, 2019USD ($) | Nov. 11, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 14, 2018USD ($) | Mar. 30, 2017USD ($) | Feb. 24, 2014USD ($) |
Line of Credit Facility | |||||||||||
Long-term indebtedness | $ 612,906,000 | $ 293,528,000 | |||||||||
Long-term debt, net | $ 630,789,000 | 294,124,000 | |||||||||
Term Loan | |||||||||||
Line of Credit Facility | |||||||||||
Face amount | $ 300,000,000 | ||||||||||
Term Loan | Period One | |||||||||||
Line of Credit Facility | |||||||||||
Stated rate | 1.25% | ||||||||||
Debt instrument term (in years) | 2 years | ||||||||||
Term Loan | Period Two | |||||||||||
Line of Credit Facility | |||||||||||
Stated rate | 1.875% | ||||||||||
Maximum | |||||||||||
Line of Credit Facility | |||||||||||
Ownership percentage | 65.00% | 65.00% | |||||||||
Line of Credit | |||||||||||
Line of Credit Facility | |||||||||||
Remaining availability under the facilities | $ 481,800,000 | ||||||||||
JPMorgan Chase Bank And Wells Fargo Bank | Line of Credit | |||||||||||
Line of Credit Facility | |||||||||||
Maximum borrowings under line of credit | $ 325,000,000 | ||||||||||
Long-term debt, net | € 40 | 45,000,000 | |||||||||
Letter of credit | 2,500,000 | $ 2,200,000 | |||||||||
Remaining availability under the facilities | $ 331,800,000 | ||||||||||
JPMorgan Chase Bank And Wells Fargo Bank | Line of Credit | Prime Rate | |||||||||||
Line of Credit Facility | |||||||||||
Interest rate | 1.00% | ||||||||||
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 | $ 900,000,000 | $ 600,000,000 | |||||||||
Additional maximum borrowing capacity upon approval | $ 300,000,000 | ||||||||||
Prudential Investment Management Inc | Line of Credit | |||||||||||
Line of Credit Facility | |||||||||||
Long-term indebtedness | $ 50,000,000 | $ 50,000,000 | $ 200,000,000 | $ 250,000,000 | |||||||
Remaining availability under the facilities | $ 150,000,000 | $ 150,000,000 | |||||||||
Weighted average interest rate | 380.00% | 3.35% | |||||||||
Debt instrument term (in years) | 3 years | 5 years | |||||||||
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 additional margin interest rate | 0.00% | 0.375% | |||||||||
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 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 | |||||||||||
Interest 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 | |||||||||||
Line of Credit Facility | |||||||||||
Interest rate | 1.375% | ||||||||||
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 | Minimum | |||||||||||
Line of Credit Facility | |||||||||||
Interest rate | 0.875% | ||||||||||
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 | |||||||||||
Interest rate | 1.625% |
Income Taxes (Schedule of Compo
Income Taxes (Schedule of Components of Earnings before Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||||||||||
United States | $ 189,834 | $ 191,095 | $ 213,967 | ||||||||
Foreign | 1,580 | 1,257 | (1,123) | ||||||||
Income before income taxes | $ 35,355 | $ 47,253 | $ 63,558 | $ 45,248 | $ 27,572 | $ 43,633 | $ 62,428 | $ 58,719 | $ 191,414 | $ 192,352 | $ 212,844 |
Income Taxes (Schedule of Provi
Income Taxes (Schedule of Provisions of Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Current Income Tax Expense (Benefit), Continuing Operations | |||
Federal | $ 33,655 | $ 22,297 | $ 62,274 |
State and local | 6,764 | 6,416 | 10,720 |
Foreign | 1,070 | 1,214 | 158 |
Total current provision | 41,489 | 29,927 | 73,152 |
Deferred Income Tax Expense (Benefit), Continuing Operations | |||
Federal | 5,923 | 12,478 | 7,614 |
State and local | (969) | 1,639 | (806) |
Foreign | (1,538) | (243) | 0 |
Total deferred provision | 3,416 | 13,874 | 6,808 |
Provision for income taxes | $ 44,905 | $ 43,801 | $ 79,960 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Examination | |||
One-time non-cash charge related to TCJA | $ 600 | ||
Provisional income tax expense related to TCJA | $ 13,200 | ||
Deferred tax liabilities | 35,740 | ||
Net operating loss carryforwards - foreign | 2,600 | ||
Valuation allowance | 1,662 | 1,261 | |
Increase in deferred tax assets, valuation allowance | 400 | ||
Net operating loss carryforwards - domestic | 300 | ||
Deferred tax asset, interest limitation | 4,400 | ||
Accrued interest and penalties related to taxes | 400 | 200 | $ 200 |
Unrecognized tax benefits, net of federal income tax benefits | 7,900 | 3,900 | $ 3,700 |
Federal | |||
Income Tax Examination | |||
Income taxes receivable | 7,100 | ||
Taxes payable | 10,200 | ||
State | |||
Income Tax Examination | |||
Income taxes receivable | 4,600 | ||
Taxes payable | 400 | ||
Foreign | |||
Income Tax Examination | |||
Income taxes receivable | 600 | ||
Taxes payable | 500 | ||
Deferred tax liabilities | 9,700 | 8,500 | |
Valuation allowance | 1,700 | $ 1,300 | |
Tax Authority, UK | |||
Income Tax Examination | |||
Net operating loss carryforwards - foreign | 1,700 | ||
Tax Authority, Italy | |||
Income Tax Examination | |||
Net operating loss carryforwards - foreign | $ 900 |
Income Taxes (Schedule of Incom
Income Taxes (Schedule of Income Taxes Reconciliation) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Income tax at federal statutory rate | $ 40,197 | $ 40,394 | $ 74,495 |
State income tax, net of federal income tax impact | 4,578 | 6,261 | 6,011 |
Domestic production deduction | 0 | 0 | (5,511) |
Share-based payment compensation excess tax benefit | (1,579) | (2,914) | (7,683) |
Changes in tax law (TCJA) | 0 | 612 | 13,210 |
Other | 1,709 | (552) | (562) |
Provision for income taxes | $ 44,905 | $ 43,801 | $ 79,960 |
Income Taxes (Schedule of Defer
Income Taxes (Schedule of Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Income Tax Disclosure [Abstract] | ||
Goodwill and other intangible assets | $ 0 | $ 3,854 |
Stock-based compensation | 2,290 | 2,956 |
Deferred compensation | 5,976 | 6,710 |
Warranty | 11,246 | 10,931 |
Inventory | 8,001 | 6,375 |
Other | 2,585 | 3,454 |
Lease obligation asset | 25,055 | 822 |
Net operating loss and interest carryforwards | 7,352 | 1,467 |
Total deferred tax assets | 62,505 | 36,569 |
Less: Valuation allowance - foreign | (1,662) | (1,261) |
Total deferred tax assets net of valuation allowance | 60,843 | 35,308 |
Lease obligation liability | (24,368) | 0 |
Fixed assets | (27,898) | (24,360) |
Intangible assets | (44,317) | (8,501) |
Total deferred tax liabilities | (96,583) | (32,861) |
Net deferred tax assets | $ 2,447 | |
Deferred Tax Liabilities, Net | $ (35,740) |
Income Taxes (Schedule of Unrec
Income Taxes (Schedule of Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns | |||
Balance at beginning of period | $ 4,325 | $ 4,145 | $ 3,747 |
Changes in tax positions of prior years | 480 | 114 | (174) |
Additions based on tax positions related to the current year | 4,288 | 802 | 1,255 |
Payments | 0 | 0 | (211) |
Closure of tax years | (879) | (736) | (472) |
Balance at end of period | $ 8,214 | $ 4,325 | $ 4,145 |
Leases (Narrative) (Details)
Leases (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2019 | |
Leases [Abstract] | ||||
Lease term | 12 years | |||
Rent expense | $ 24,200 | $ 15,200 | ||
Remaining lease term | 6 years 7 months 6 days | |||
Discount rate | 5.50% | |||
Operating lease right-of-use assets | $ 98,774 | $ 0 | $ 66,400 | |
Right-of-use asset obtained in exchange for operating lease | 50,500 | |||
Operating lease right-of-use assets | 34,300 | |||
Operating lease payments | $ 21,800 |
Leases (Components of Lease Cos
Leases (Components of Lease Cost) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating lease cost | $ 21,899 |
Short-term lease cost | 2,611 |
Variable lease cost | 1,781 |
Total lease cost | $ 26,291 |
Leases (Future Minimum Lease Pa
Leases (Future Minimum Lease Payments) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Jan. 01, 2019 |
Leases [Abstract] | ||
2020 | $ 26,764 | |
2021 | 23,042 | |
2022 | 17,031 | |
2023 | 11,951 | |
2024 | 10,477 | |
Thereafter | 33,077 | |
Total future minimum lease payments | 122,342 | |
Less: Interest | (20,801) | |
Present value of operating lease liabilities | $ 101,541 | $ 69,000 |
Commitments And Contingencies_2
Commitments And Contingencies (Narrative) (Details) $ in Millions | 1 Months Ended | ||
Jul. 31, 2015 | Dec. 31, 2019USD ($) | Dec. 31, 2018 | |
Contract termination | |||
Long-term Purchase Commitment [Line Items] | |||
Receivables | $ 40 | ||
Furrion Limited | |||
Long-term Purchase Commitment [Line Items] | |||
Long-term purchase commitment, time period | 6 years | ||
Weighted Average Cost of Capital | |||
Long-term Purchase Commitment [Line Items] | |||
Percentage of weighted average cost of capital | 0.114 | 0.121 |
Commitments And Contingencies_3
Commitments And Contingencies (Reconciliation Of Contingent Consideration Liability) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Business Combination, Contingent Consideration, Reconciliation of Change in Liability | |||
Balance at beginning of period | $ 7,302 | $ 12,545 | $ 9,241 |
Acquisitions | 0 | 43 | 7,288 |
Payments | (10) | (4,803) | (7,682) |
Accretion | 792 | 951 | 1,652 |
Fair value adjustments | (3,691) | (944) | 1,257 |
Net foreign currency translation adjustment | 3 | (490) | 789 |
Balance at end of the period | 4,396 | 7,302 | 12,545 |
Less current portion in accrued expenses and other current liabilities | (2,351) | (17) | (4,658) |
Total long-term portion in other long-term liabilities | 2,045 | $ 7,285 | $ 7,887 |
Contingent consideration, total remaining estimated payments | $ 5,600 |
Stockholders' Equity (Schedule
Stockholders' Equity (Schedule of Quarterly Dividends Declared and Paid) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Class of Stock [Line Items] | |||||||||||||||
Dividends paid per share (in usd per share) | $ 0.65 | $ 0.65 | $ 0.65 | $ 0.60 | $ 0.60 | $ 0.60 | $ 0.60 | $ 0.55 | $ 0.55 | $ 0.50 | $ 0.50 | $ 0.50 | $ 2.55 | $ 2.35 | $ 2.05 |
Payment of dividends | $ 63,813 | $ 59,270 | $ 51,057 | ||||||||||||
Common Stock | |||||||||||||||
Class of Stock [Line Items] | |||||||||||||||
Payment of dividends | $ 16,280 | $ 16,267 | $ 16,267 | $ 14,999 | $ 15,156 | $ 15,129 | $ 15,127 | $ 13,858 | $ 13,711 | $ 12,459 | $ 12,445 | $ 12,442 | $ 63,813 | $ 59,270 | $ 51,057 |
Stockholders' Equity (Narrative
Stockholders' Equity (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Oct. 31, 2018 | May 24, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Number of shares of common stock subject to awards | 1,500,000 | ||||
Shares available for grant | 1,361,748 | 1,570,274 | 737,689 | ||
Amount of compensation exchanged for deferred stock units | $ 6,900 | ||||
Weighted average diluted shares outstanding excludes shares of common stock subject to stock options | 122,775 | 94,747 | 104,073 | ||
Number of shares authorized to be repurchased (in shares) | 150,000,000 | ||||
Stock repurchase program, period in force | 3 years | ||||
Stock repurchased during period (in shares) | 402,570 | 402,570 | |||
Weighted average price (in usd per share) | $ 71.28 | ||||
Stock repurchased during period | $ 28,700 | $ 28,695 | |||
Deferred and Restricted Stock Unit | |||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Unrecognized compensation costs | $ 18,300 | ||||
Unrecognized compensation costs, weighted-average recognition period | 1 year 4 months 24 days | ||||
Stock Awards | |||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Unrecognized compensation costs | $ 2,900 | ||||
Unrecognized compensation costs, weighted-average recognition period | 10 months 24 days |
Stockholders' Equity (Schedul_2
Stockholders' Equity (Schedule of Stock-Based Compensation) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award | |||
Stock-based compensation expense | $ 16,077 | $ 14,065 | $ 20,036 |
Deferred and Restricted Stock Unit | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Stock-based compensation expense | 14,342 | 12,427 | 10,696 |
Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Stock-based compensation expense | 0 | 590 | 1,191 |
Stock Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Stock-based compensation expense | $ 1,735 | $ 1,048 | $ 8,149 |
Stockholders' Equity (Schedul_3
Stockholders' Equity (Schedule of Deferred and Restricted Stock Units Transactions) (Details) - Deferred and Restricted Stock Unit - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Number of Shares | |||
Balance at beginning of the period (in shares) | 264,406 | 449,055 | 506,447 |
Issued (in shares) | 6,073 | 5,354 | 68,340 |
Granted (in shares) | 252,068 | 101,650 | 95,079 |
Dividend equivalents (in shares) | 10,243 | 8,036 | 9,799 |
Forfeited (in shares) | (9,079) | (9,557) | (3,094) |
Vested (in shares) | (177,563) | (290,132) | (227,516) |
Balance at end of the period (in shares) | 346,148 | 264,406 | 449,055 |
Weighted Average Price | |||
Outstanding exercise price (in usd per share) | $ 83.84 | $ 72.55 | $ 50 |
Issued (in usd per share) | 89.82 | 106.10 | 108.61 |
Granted (in usd per share) | 81.07 | 103.20 | 109.50 |
Dividend equivalent (in usd per share) | 89.65 | 89.66 | 104.12 |
Forfeited (in usd per share) | 89.67 | 76.71 | 72.96 |
Exercised (in usd per share) | 69.65 | 74.83 | 40.39 |
Outstanding exercise price (in usd per share) | $ 87.54 | $ 83.84 | $ 72.55 |
Stockholders' Equity (Schedul_4
Stockholders' Equity (Schedule of Stock Awards) (Details) - Stock Awards - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Number of Shares | |||
Balance at beginning of the period (in shares) | 187,368 | 271,819 | 232,622 |
Issued (in shares) | 5,641 | ||
Granted (in shares) | 48,995 | 111,246 | 103,382 |
Dividend equivalents (in shares) | 3,658 | 6,280 | 5,249 |
Forfeited (in shares) | (8,459) | (71,618) | |
Vested (in shares) | (102,434) | (136,000) | (69,434) |
Balance at end of the period (in shares) | 129,128 | 187,368 | 271,819 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Outstanding exercise price (in usd per share) | $ 91.39 | $ 70.29 | $ 55.60 |
Issued (in usd per share) | 106.10 | ||
Granted (in usd per share) | 78.11 | 106.10 | 90.36 |
Dividend equivalents (in usd per share) | 67.03 | 90.47 | 104.93 |
Forfeited (in usd per share) | 106.10 | 86.65 | |
Vested (in usd per share) | 77.93 | 64.32 | 51.20 |
Outstanding exercise price (in usd per share) | $ 96.21 | $ 91.39 | $ 70.29 |
Stockholders' Equity (Schedul_5
Stockholders' Equity (Schedule of Computation of Basic and Diluted Earnings Per Share) (Details) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Stockholders' Equity Note [Abstract] | |||
Weighted average shares outstanding for basic earnings per share | 24,998 | 25,178 | 25,020 |
Common stock equivalents pertaining to stock options and deferred stock units | 95 | 285 | 355 |
Weighted average shares outstanding for diluted earnings per share | 25,093 | 25,463 | 25,375 |
Fair Value Measurements (Assets
Fair Value Measurements (Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Liabilities | ||
Derivative liabilities | $ 1,100 | |
Recurring | ||
Liabilities | ||
Contingent consideration | $ 4,396 | 7,302 |
Derivative liabilities | 679 | 1,108 |
Recurring | Level 1 | ||
Liabilities | ||
Contingent consideration | 0 | 0 |
Derivative liabilities | 0 | 0 |
Recurring | Level 2 | ||
Liabilities | ||
Contingent consideration | 0 | 0 |
Derivative liabilities | 679 | 1,108 |
Recurring | Level 3 | ||
Liabilities | ||
Contingent consideration | 4,396 | 7,302 |
Derivative liabilities | $ 0 | $ 0 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) lb in Millions, $ in Millions | 12 Months Ended | |
Dec. 31, 2019USD ($)derivative_instrumentlb$ / lb | Dec. 31, 2018USD ($)derivative_instrumentlb$ / lb | |
Fair Value Disclosures [Abstract] | ||
Number of derivative instruments | derivative_instrument | 6 | 5 |
Derivative nonmonetary notional amount, mass | lb | 11.2 | 34.4 |
Underlying derivative mass | $ / lb | 0.37 | 0.39 |
Derivative liabilities | $ 1.1 | |
Derivative liability, current | $ 0.7 | 0.9 |
Derivative liability, noncurrent | $ 0.2 | |
Average long-term sales growth forecast, over next 4 years, percent per year | 14.00% | |
Number of years long-term sales growth forecasted over | 6 years |
Segment Reporting (Narrative) (
Segment Reporting (Narrative) (Details) - segment | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information | |||
Number of reportable segments | 2 | ||
Aftermarket Segment | Net sales | |||
Segment Reporting Information | |||
Consolidated risk, percentage | 12.00% | 9.00% | 8.00% |
OEM Segment | Net sales | |||
Segment Reporting Information | |||
Consolidated risk, percentage | 88.00% | 91.00% | 92.00% |
Product Concentration Risk | Travel Trailer and Fifth Wheels | Net sales | |||
Segment Reporting Information | |||
Consolidated risk, percentage | 61.00% | 64.00% | 71.00% |
Segment Reporting (Schedule of
Segment Reporting (Schedule of Net Sales by Segment) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information | |||||||||||
Net sales | $ 564,021 | $ 586,221 | $ 629,068 | $ 592,172 | $ 536,616 | $ 604,244 | $ 684,455 | $ 650,492 | $ 2,371,482 | $ 2,475,807 | $ 2,147,770 |
OEM Segment | |||||||||||
Segment Reporting Information | |||||||||||
Net sales | 2,091,901 | 2,242,616 | 1,976,623 | ||||||||
Travel Trailer and Fifth Wheels | |||||||||||
Segment Reporting Information | |||||||||||
Net sales | 1,276,718 | 1,440,730 | 1,405,983 | ||||||||
Motorhomes | |||||||||||
Segment Reporting Information | |||||||||||
Net sales | 155,623 | 187,297 | 159,417 | ||||||||
OEMs Adjacent Industries | |||||||||||
Segment Reporting Information | |||||||||||
Net sales | 659,560 | 614,589 | 411,223 | ||||||||
Aftermarket Segment | |||||||||||
Segment Reporting Information | |||||||||||
Net sales | 279,581 | 233,191 | 171,147 | ||||||||
U.S. | |||||||||||
Segment Reporting Information | |||||||||||
Net sales | 2,225,712 | 2,371,750 | 2,101,530 | ||||||||
U.S. | OEM Segment | |||||||||||
Segment Reporting Information | |||||||||||
Net sales | 1,962,330 | 2,149,162 | 1,940,893 | ||||||||
U.S. | Travel Trailer and Fifth Wheels | |||||||||||
Segment Reporting Information | |||||||||||
Net sales | 1,264,404 | 1,431,574 | 1,403,079 | ||||||||
U.S. | Motorhomes | |||||||||||
Segment Reporting Information | |||||||||||
Net sales | 110,405 | 143,488 | 138,895 | ||||||||
U.S. | OEMs Adjacent Industries | |||||||||||
Segment Reporting Information | |||||||||||
Net sales | 587,521 | 574,100 | 398,919 | ||||||||
U.S. | Aftermarket Segment | |||||||||||
Segment Reporting Information | |||||||||||
Net sales | 263,382 | 222,588 | 160,637 | ||||||||
Int'l | |||||||||||
Segment Reporting Information | |||||||||||
Net sales | 145,770 | 104,057 | 46,240 | ||||||||
Int'l | OEM Segment | |||||||||||
Segment Reporting Information | |||||||||||
Net sales | 129,571 | 93,454 | 35,730 | ||||||||
Int'l | Travel Trailer and Fifth Wheels | |||||||||||
Segment Reporting Information | |||||||||||
Net sales | 12,314 | 9,156 | 2,904 | ||||||||
Int'l | Motorhomes | |||||||||||
Segment Reporting Information | |||||||||||
Net sales | 45,218 | 43,809 | 20,522 | ||||||||
Int'l | OEMs Adjacent Industries | |||||||||||
Segment Reporting Information | |||||||||||
Net sales | 72,039 | 40,489 | 12,304 | ||||||||
Int'l | Aftermarket Segment | |||||||||||
Segment Reporting Information | |||||||||||
Net sales | $ 16,199 | $ 10,603 | $ 10,510 |
Segment Reporting (Schedule o_2
Segment Reporting (Schedule of Information Relating to Segments) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information | |||||||||||
Net sales | $ 564,021 | $ 586,221 | $ 629,068 | $ 592,172 | $ 536,616 | $ 604,244 | $ 684,455 | $ 650,492 | $ 2,371,482 | $ 2,475,807 | $ 2,147,770 |
Operating profit (loss) | 200,210 | 198,788 | 214,281 | ||||||||
Total assets | 1,862,595 | 1,243,893 | 1,862,595 | 1,243,893 | 945,858 | ||||||
Expenditures for long-lived assets | 469,188 | 268,439 | 153,445 | ||||||||
Depreciation and amortization | 75,358 | 67,526 | 54,727 | ||||||||
Purchase of long-lived assets as part of business acquisition | 395,600 | 150,900 | 65,000 | ||||||||
OEM Segment | |||||||||||
Segment Reporting Information | |||||||||||
Net sales | 2,091,901 | 2,242,616 | 1,976,623 | ||||||||
Aftermarket Segment | |||||||||||
Segment Reporting Information | |||||||||||
Net sales | 279,581 | 233,191 | 171,147 | ||||||||
Corporate and Other | |||||||||||
Segment Reporting Information | |||||||||||
Operating profit (loss) | 0 | 0 | 0 | ||||||||
Total assets | 99,008 | 79,863 | 99,008 | 79,863 | 83,623 | ||||||
Depreciation and amortization | $ 0 | $ 0 | $ 314 | ||||||||
Net sales | OEM Segment | |||||||||||
Segment Reporting Information | |||||||||||
Consolidated risk, percentage | 88.00% | 91.00% | 92.00% | ||||||||
Net sales | Aftermarket Segment | |||||||||||
Segment Reporting Information | |||||||||||
Consolidated risk, percentage | 12.00% | 9.00% | 8.00% | ||||||||
Customer Concentration Risk | Net sales | Thor Industries, Inc. | |||||||||||
Segment Reporting Information | |||||||||||
Consolidated risk, percentage | 27.00% | 31.00% | 38.00% | ||||||||
Customer Concentration Risk | Net sales | Berkshire Hathaway Inc. | |||||||||||
Segment Reporting Information | |||||||||||
Consolidated risk, percentage | 21.00% | 23.00% | 25.00% | ||||||||
Operating Segments | |||||||||||
Segment Reporting Information | |||||||||||
Net sales | $ 2,371,482 | $ 2,475,807 | $ 2,147,770 | ||||||||
Operating profit (loss) | 200,210 | 198,788 | 214,281 | ||||||||
Total assets | 1,763,587 | 1,164,030 | 1,763,587 | 1,164,030 | 862,235 | ||||||
Expenditures for long-lived assets | 469,188 | 268,439 | 153,445 | ||||||||
Depreciation and amortization | 75,358 | 67,526 | 54,413 | ||||||||
Operating Segments | OEM Segment | |||||||||||
Segment Reporting Information | |||||||||||
Net sales | 2,091,901 | 2,242,616 | 1,976,623 | ||||||||
Operating profit (loss) | 165,290 | 167,459 | 190,276 | ||||||||
Total assets | 1,167,899 | 1,034,254 | 1,167,899 | 1,034,254 | 785,926 | ||||||
Expenditures for long-lived assets | 166,331 | 247,895 | 148,570 | ||||||||
Depreciation and amortization | 70,136 | 63,447 | 50,751 | ||||||||
Operating Segments | Aftermarket Segment | |||||||||||
Segment Reporting Information | |||||||||||
Net sales | 279,581 | 233,191 | 171,147 | ||||||||
Operating profit (loss) | 34,920 | 31,329 | 24,005 | ||||||||
Total assets | $ 595,688 | $ 129,776 | 595,688 | 129,776 | 76,309 | ||||||
Expenditures for long-lived assets | 302,857 | 20,544 | 4,875 | ||||||||
Depreciation and amortization | $ 5,222 | $ 4,079 | $ 3,662 |
Segment Reporting (Schedule o_3
Segment Reporting (Schedule of Net Sales by Product) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information | |||||||||||
Total net sales | $ 564,021 | $ 586,221 | $ 629,068 | $ 592,172 | $ 536,616 | $ 604,244 | $ 684,455 | $ 650,492 | $ 2,371,482 | $ 2,475,807 | $ 2,147,770 |
OEM Segment | |||||||||||
Segment Reporting Information | |||||||||||
Total net sales | 2,091,901 | 2,242,616 | 1,976,623 | ||||||||
Aftermarket Segment | |||||||||||
Segment Reporting Information | |||||||||||
Total net sales | 279,581 | 233,191 | 171,147 | ||||||||
Chassis, Chassis Parts and Slide-out Mechanisms | OEM Segment | |||||||||||
Segment Reporting Information | |||||||||||
Total net sales | 796,434 | 908,065 | 914,397 | ||||||||
Windows and Doors | OEM Segment | |||||||||||
Segment Reporting Information | |||||||||||
Total net sales | 585,464 | 615,644 | 424,625 | ||||||||
Furniture and Mattresses | OEM Segment | |||||||||||
Segment Reporting Information | |||||||||||
Total net sales | 342,691 | 380,514 | 342,680 | ||||||||
Axles and Suspension Solutions | OEM Segment | |||||||||||
Segment Reporting Information | |||||||||||
Total net sales | 129,471 | 122,897 | 123,513 | ||||||||
Other Products | OEM Segment | |||||||||||
Segment Reporting Information | |||||||||||
Total net sales | $ 237,841 | $ 215,496 | $ 171,408 |
Quarterly Results Of Operatio_3
Quarterly Results Of Operations (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net sales | $ 564,021 | $ 586,221 | $ 629,068 | $ 592,172 | $ 536,616 | $ 604,244 | $ 684,455 | $ 650,492 | $ 2,371,482 | $ 2,475,807 | $ 2,147,770 |
Gross profit | 122,482 | 135,473 | 148,653 | 132,594 | 103,254 | 125,901 | 150,456 | 140,733 | 539,202 | 520,344 | 493,114 |
Income before income taxes | 35,355 | 47,253 | 63,558 | 45,248 | 27,572 | 43,633 | 62,428 | 58,719 | 191,414 | 192,352 | 212,844 |
Net income | $ 28,807 | $ 35,809 | $ 47,527 | $ 34,366 | $ 20,179 | $ 33,812 | $ 47,224 | $ 47,336 | $ 146,509 | $ 148,551 | $ 132,884 |
Net income per common share: | |||||||||||
Basic (in usd per share) | $ 1.15 | $ 1.43 | $ 1.90 | $ 1.38 | $ 0.80 | $ 1.34 | $ 1.87 | $ 1.88 | $ 5.86 | $ 5.90 | $ 5.31 |
Diluted (in usd per share) | 1.14 | 1.42 | 1.89 | 1.38 | 0.80 | 1.33 | 1.86 | 1.86 | 5.84 | 5.83 | $ 5.24 |
Stock market price, High (in usd per share) | 109.79 | 95.52 | 97.77 | 86.13 | 80.89 | 102.23 | 104.90 | 132.30 | 109.79 | 132.30 | |
Stock market price, Low (in usd per share) | 87.15 | 92.93 | 75.59 | 64.70 | 59.68 | 98.40 | 80.95 | 99.46 | 64.70 | 59.68 | |
Close (at end of quarter) (in usd per share) | $ 107.13 | $ 91.85 | $ 90 | $ 76.82 | $ 66.80 | $ 69.35 | $ 90.15 | $ 104.15 | $ 107.13 | $ 66.80 |