Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2016 | Jul. 31, 2016 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | FUEL TECH, INC. | |
Document Type | 10-Q | |
Current Fiscal Year End Date | --12-31 | |
Entity Common Stock, Shares Outstanding | 23,324,298 | |
Amendment Flag | false | |
Entity Central Index Key | 846,913 | |
Entity Filer Category | Smaller Reporting Company | |
Document Period End Date | Jun. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus (Q1,Q2,Q3,FY) | Q2 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 12,426 | $ 21,684 |
Restricted cash | 7,020 | 0 |
Marketable securities | 7 | 19 |
Accounts receivable, net of allowance for doubtful accounts of $1,687 and $1,772, respectively | 22,429 | 23,060 |
Inventories | 1,498 | 1,653 |
Prepaid expenses and other current assets | 2,390 | 3,889 |
Prepaid income taxes | 659 | 1,857 |
Deferred income taxes | 0 | 239 |
Total current assets | 46,429 | 52,401 |
Property and equipment, net of accumulated depreciation of $23,921 and $23,414, respectively | 11,247 | 12,001 |
Goodwill | 2,116 | 2,116 |
Other intangible assets, net of accumulated amortization of $7,886 and $7,452, respectively | 6,381 | 7,144 |
Deferred income taxes | 1,205 | 992 |
Other assets | 1,320 | 1,357 |
Total assets | 68,698 | 76,011 |
Current liabilities: | ||
Accounts payable | 7,267 | 8,942 |
Accrued liabilities: | ||
Employee compensation | 1,556 | 1,645 |
Other accrued liabilities | 4,487 | 5,949 |
Total current liabilities | 13,310 | 16,536 |
Other liabilities | 503 | 501 |
Total liabilities | 13,813 | 17,037 |
Commitments and Contingencies | ||
Shareholders’ equity: | ||
Common stock, $.01 par value, 40,000,000 shares authorized, 23,539,342 and 23,419,008 shares issued, and 23,257,804, and 23,167,216 shares outstanding, respectively | 238 | 234 |
Additional paid-in capital | 136,429 | 135,394 |
Accumulated deficit | (79,398) | (74,132) |
Accumulated other comprehensive loss | (1,246) | (1,556) |
Nil coupon perpetual loan notes | 76 | 76 |
Treasury stock, at cost | (1,214) | (1,042) |
Total shareholders’ equity | 54,885 | 58,974 |
Total liabilities and shareholders’ equity | $ 68,698 | $ 76,011 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 1,687 | $ 1,772 |
Accumulated depreciation | 23,921 | 23,414 |
Accumulated amortization | $ 7,886 | $ 7,452 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 40,000,000 | 40,000,000 |
Common stock, shares issued (in shares) | 23,539,342 | 23,419,008 |
Common stock outstanding (in shares) | 23,257,804 | 23,167,216 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Income Statement [Abstract] | ||||
Revenues | $ 15,175 | $ 18,683 | $ 32,997 | $ 33,786 |
Costs and expenses: | ||||
Cost of sales | 9,595 | 11,547 | 21,369 | 19,984 |
Selling, general and administrative | 6,760 | 8,400 | 14,239 | 16,603 |
Research and development | 1,122 | 982 | 2,280 | 1,854 |
Costs and expenses: | 17,477 | 20,929 | 37,888 | 38,441 |
Operating (loss) | (2,302) | (2,246) | (4,891) | (4,655) |
Interest expense | 0 | (3) | 0 | (30) |
Interest income | 6 | 7 | 16 | 14 |
Other expense | (221) | (65) | (484) | (161) |
(Loss) before income taxes | (2,517) | (2,307) | (5,359) | (4,832) |
Income tax benefit | (111) | 936 | 94 | 1,807 |
Net (loss) | $ (2,628) | $ (1,371) | $ (5,265) | $ (3,025) |
Net (loss) per common share: | ||||
Basic (in dollars per share) | $ (0.11) | $ (0.06) | $ (0.23) | $ (0.13) |
Diluted (in dollars per share) | $ (0.11) | $ (0.06) | $ (0.23) | $ (0.13) |
Weighted-average number of common shares outstanding: | ||||
Basic (in shares) | 23,381 | 23,140 | 23,283 | 23,034 |
Diluted (in shares) | 23,381 | 23,140 | 23,283 | 23,034 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Statement of Comprehensive Income [Abstract] | ||||
Net (loss) | $ (2,628) | $ (1,371) | $ (5,265) | $ (3,025) |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustments | (111) | 97 | 318 | (64) |
Unrealized (losses) from marketable securities, net of tax | (5) | 0 | (8) | 0 |
Total other comprehensive income (loss) | (116) | 97 | 310 | (64) |
Comprehensive (loss) | $ (2,744) | $ (1,274) | $ (4,955) | $ (3,089) |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Operating Activities | ||
Net (loss) | $ (5,265) | $ (3,025) |
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | ||
Depreciation | 926 | 1,049 |
Amortization | 861 | 1,075 |
Loss (Gain) on disposal of equipment | 26 | (26) |
Allowance for doubtful accounts | 151 | 0 |
Deferred income taxes | (10) | (167) |
Stock-based compensation | 1,041 | 833 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 173 | 2,378 |
Inventories | 149 | (279) |
Prepaid expenses, other current assets and other non-current assets | 2,861 | 183 |
Accounts payable | (1,630) | 1,674 |
Accrued liabilities and other non-current liabilities | (1,482) | (5,002) |
Net cash (used in) provided by operating activities | (2,199) | (1,307) |
Investing Activities | ||
Purchases of property, equipment and patents | (302) | (383) |
Proceeds from the sale of equipment | 1 | 26 |
Net cash (used in) investing activities | (301) | (357) |
Financing Activities | ||
Change in restricted cash | (7,020) | 0 |
Payments on short-term borrowings | 0 | (1,636) |
Treasury shares withheld | (172) | (252) |
Net cash (used in) financing activities | (7,192) | (1,888) |
Effect of exchange rate fluctuations on cash | 434 | (118) |
Net decrease in cash and cash equivalents | (9,258) | (3,670) |
Cash and cash equivalents at beginning of period | 21,684 | 18,637 |
Cash and cash equivalents at end of period | $ 12,426 | $ 14,967 |
General
General | 6 Months Ended |
Jun. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
General | Organization Fuel Tech, Inc. and subsidiaries ("Fuel Tech", the "Company", "we", "us" or "our") provides advanced engineered solutions for the optimization of combustion systems in utility and industrial applications. Our primary focus is on the worldwide marketing and sale of NO x reduction technologies as well as our FUEL CHEM program. The Company’s NO x reduction technologies reduce nitrogen oxide emissions from boilers, furnaces and other stationary combustion sources. Our FUEL CHEM program is based on proprietary TIFI ® Targeted In-Furnace™ Injection technology, in combination with advanced Computational Fluid Dynamics (CFD) and Chemical Kinetics Modeling (CKM) boiler modeling, in the unique application of specialty chemicals to improve the efficiency, reliability and environmental status of combustion units by controlling slagging, fouling, corrosion, opacity and other sulfur trioxide-related issues in the boiler. Our business is materially dependent on the continued existence and enforcement of air quality regulations, particularly in the United States. We have expended significant resources in the research and development of new technologies in building our proprietary portfolio of air pollution control, fuel and boiler treatment chemicals, computer modeling and advanced visualization technologies. Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X of the Exchange Act. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, the financial statements reflect all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation of the statements for the periods presented. All significant intercompany transactions and balances have been eliminated. The results of operations for the three and six months ended June 30, 2016 are not necessarily indicative of the results to be expected for the full year ending December 31, 2016. For further information, refer to the audited consolidated financial statements and footnotes thereto included in Fuel Tech’s Annual Report on Form 10-K for the year ended December 31, 2015 as filed with the Securities and Exchange Commission. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Restricted cash Restricted cash represents funds that are restricted to satisfy any amount borrowed against the Company's existing revolving credit facility (the Facility) with JPMorgan Chase Bank, N.A. The amount of restricted cash was reduced by $1,000 on July 31, 2016 and became unrestricted cash and cash equivalents. The remaining balance of restricted cash totaling $6,020 will remain through the Maturity Date of the Facility. Refer to Note 8 Debt Financing for further information on the Facility. Revenue Recognition Revenues from the sales of chemical products are recorded when title transfers, either at the point of shipment or at the point of destination, depending on the contract with the customer. Fuel Tech uses the percentage of completion method of accounting for equipment construction and license contracts that are sold within the Air Pollution Control technology segment. Under the percentage of completion method, revenues are recognized as work is performed based on the relationship between actual construction costs incurred and total estimated costs at completion. Construction costs include all direct costs such as materials, labor, and subcontracting costs, and indirect costs allocable to the particular contract such as indirect labor, tools and equipment, and supplies. Revisions in completion estimates and contract values are made in the period in which the facts giving rise to the revisions become known and can influence the timing of when revenues are recognized under the percentage of completion method of accounting. Such revisions have historically not had a material effect on the amount of revenue recognized. The completed contract method is used for certain contracts that are not long-term in nature or when reasonably dependable estimates of the percentage of completion cannot be made. When the completed contract method is used, revenue and costs are deferred until the contract is substantially complete, which usually occurs upon customer acceptance of the installed product. Provisions are made for estimated losses on uncompleted contracts in the period in which such losses are determined. As of June 30, 2016 and December 31, 2015 , the Company had two contracts in progress that were identified as loss contracts, and a provision for loss in the amount of $3 was recorded in other accrued liabilities on the consolidated balance sheets. Fuel Tech’s APC contracts are typically eight to sixteen months in length. A typical contract will have three or four critical operational measurements that, when achieved, serve as the basis for us to invoice the customer via progress billings. At a minimum, these measurements will include the generation of engineering drawings, the shipment of equipment and the completion of a system performance test. As part of most of its contractual APC project agreements, Fuel Tech will agree to customer-specific acceptance criteria that relate to the operational performance of the system that is being sold. These criteria are determined based on mathematical modeling that is performed by Fuel Tech personnel, which is based on operational inputs that are provided by the customer. The customer will warrant that these operational inputs are accurate as they are specified in the binding contractual agreement. Further, the customer is solely responsible for the accuracy of the operating condition information; typically all performance guarantees and equipment warranties granted by us are voidable if the operating condition information is inaccurate or is not met. Accounts receivable includes unbilled receivables, representing revenues recognized in excess of billings on uncompleted contracts under the percentage of completion method of accounting. At June 30, 2016 and December 31, 2015 , unbilled receivables were approximately $7,292 and $7,312 , respectively, and are included in accounts receivable on the consolidated balance sheets. Billings in excess of costs and estimated earnings on uncompleted contracts were $1,206 and $1,858 , at June 30, 2016 and December 31, 2015 , respectively, and are included in other accrued liabilities on the consolidated balance sheets. Fuel Tech has installed over 1,000 units with APC technology and normally provides performance guarantees to our customers based on the operating conditions for the project. As part of the project implementation process, we perform system start-up and optimization services that effectively serve as a test of actual project performance. We believe that this test, combined with the accuracy of the modeling that is performed, enables revenue to be recognized prior to the receipt of formal customer acceptance. Recently Adopted Accounting Pronouncements In November 2015, the FASB issued ASU 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes. The amendments in this Update require that deferred tax liabilities and assets be classified as non-current in a classified statement of financial position. Current accounting principles require an entity to separate deferred income tax liabilities and assets into current and non-current amounts in a classified statement of financial position. ASU 2015-17 is effective for interim and annual periods beginning after December 15, 2016. The Company elected to early adopt ASU 2015-17 prospectively for the interim period beginning in the second quarter of 2016; thus, the prior reporting period was not retrospectively adjusted. See Note 11, Income Taxes, for further discussion. Recently Issued Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (FASB) issued ASU 2014-09 "Revenue from Contracts with Customers" (Topic 606). This new accounting guidance on revenue recognition provides for a single five-step model to be applied to all revenue contracts with customers. The new standard also requires additional financial statement disclosures that will enable users to understand the nature, amount, timing and uncertainty of revenue and cash flows relating to customer contracts. In August 2015, the FASB approved a one-year deferral to January 1, 2018. Early adoption is permitted as of the original effective date. The standard may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of adoption. We are currently evaluating the impact of the new guidance on our financial statements and have not yet selected a transition approach to implement the standard. In July 2015, the FASB issued ASU 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory. This new accounting guidance more clearly articulates the requirements for the measurement and disclosure of inventory. Topic 330, Inventory, currently requires an entity to measure inventory at the lower of cost or market. Market could be replacement cost, net realizable value, or net realizable value less an approximately normal profit margin. This new accounting guidance requires the measurement of inventory at lower of cost and net realizable value. ASU 2015-11 will be effective for the Company beginning on January 1, 2017. The adoption of this guidance in not expected to have a material impact on the Company’s consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). The amendments in this Update increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. ASU 2016-02 will be effective for the Company beginning on January 1, 2019. We are currently evaluating the impact of the new guidance on our financial statements and have not yet selected a transition approach to implement the standard. In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. The amendments in this Update simplify the income tax effects, minimum statutory tax withholding requirements and impact of forfeitures related to how share-based payments are accounted for and presented in the financial statements. ASU 2016-09 will be effective for the Company beginning on January 1, 2017. We are currently evaluating the impact of the new guidance on our financial statements and have not yet selected a transition approach to implement the statement. |
Available-for-Sale Marketable S
Available-for-Sale Marketable Securities | 6 Months Ended |
Jun. 30, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Available-for-Sale Marketable Securities | Available-for-Sale Marketable Securities At the time of purchase, marketable securities are classified as available-for-sale as management has the intent and ability to hold such securities for an indefinite period of time, but not necessarily to maturity. Any decision to sell available-for-sale securities would be based on various factors, including, but not limited to asset/liability management strategies, changes in interest rates or prepayment risks, and liquidity needs. Available-for-sale securities are carried at fair value with unrealized gains and losses, net of related deferred income taxes, recorded in equity as a separate component of other comprehensive income (OCI). Our marketable securities consist of a single equity investment with a fair value of $ 7 and $ 19 and no cost basis at June 30, 2016 and December 31, 2015 , respectively. Purchases and sales of securities are recognized on a trade date basis. Realized securities gains or losses are reported in other income/(expense) in the Consolidated Statements of Operations. The cost of securities sold is based on the specific identification method. On a quarterly basis, we make an assessment to determine if there have been any events or circumstances to indicate whether a security with an unrealized loss is impaired on an other-than-temporary (OTTI) basis. This determination requires significant judgment. OTTI is considered to have occurred (1) if management intends to sell the security; (2) if it is more likely than not we will be required to sell the security before recovery of its amortized cost basis; or (3) the present value of the expected cash flows is not sufficient to recover the entire amortized cost basis. The credit-related OTTI, represented by the expected loss in principal, is recognized in non-interest income, while noncredit-related OTTI is recognized in OCI. For securities which we do expect to sell, all OTTI is recognized in earnings. Presentation of OTTI is made in the income statement on a gross basis with a reduction for the amount of OTTI recognized in OCI. Once an other-than-temporary impairment is recorded, when future cash flows can be reasonably estimated, future cash flows are re-allocated between interest and principal cash flows to provide for a level-yield on the security. We have not experienced any other-than-temporary impairments during the periods ended June 30, 2016 and 2015 . |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 6 Months Ended |
Jun. 30, 2016 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss The changes in accumulated other comprehensive loss by component were as follows: Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 Foreign currency translation Balance at beginning of period $ (1,139 ) $ (632 ) $ (1,568 ) $ (471 ) Other comprehensive loss: Foreign currency translation adjustments (1) (111 ) 97 318 (64 ) Balance at end of period $ (1,250 ) $ (535 ) $ (1,250 ) $ (535 ) Available-for-sale marketable securities Balance at beginning of period $ 9 $ 23 $ 12 $ 23 Other comprehensive income: Net unrealized holding (loss) gain (2) (5 ) — (8 ) — Deferred income taxes (2) — — — Total other comprehensive (loss) income (5 ) — (8 ) — Balance at end of period $ 4 $ 23 $ 4 $ 23 Total accumulated other comprehensive loss $ (1,246 ) $ (512 ) $ (1,246 ) $ (512 ) (1) In all periods presented, there were no tax impacts related to rate changes and no amounts were reclassified to earnings. (2) In all periods presented, there were no realized holding gains or losses and therefore no amounts were reclassified to earnings. |
Treasury Stock
Treasury Stock | 6 Months Ended |
Jun. 30, 2016 | |
Equity [Abstract] | |
Treasury Stock | Treasury Stock Common stock held in treasury totaled 354,889 and 251,792 with a cost of $1,214 and $1,042 at June 30, 2016 and December 31, 2015 , respectively. These shares were withheld from employees to settle personal tax withholding obligations that arose as a result of restricted stock units that have vested since 2012. |
Earnings per Share
Earnings per Share | 6 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |
Earnings per Share | Earnings per Share Basic earnings per share excludes the dilutive effects of stock options, restricted stock units (RSUs), and the nil coupon non-redeemable convertible unsecured loan notes. Diluted earnings per share includes the dilutive effect of the nil coupon non-redeemable convertible unsecured loan notes, RSUs, and unexercised in-the-money stock options, except in periods of net loss where the effect of these instruments is anti-dilutive. Out-of-money stock options are excluded from diluted earnings per share because they are anti-dilutive. For the three and six months ended June 30, 2016 and 2015, basic earnings per share is equal to diluted earnings per share because all outstanding stock awards and convertible loan notes are considered anti-dilutive during periods of net loss. The following table sets forth the weighted-average shares used in calculating the earnings per share for the three and six month periods ended June 30, 2016 and 2015 . Three Months Ended Six Months Ended 2016 2015 2016 2015 Basic weighted-average shares 23,381,000 23,140,000 23,283,000 23,034,000 Conversion of unsecured loan notes — — — — Unexercised options and unvested RSUs — — — — Diluted weighted-average shares 23,381,000 23,140,000 23,283,000 23,034,000 Fuel Tech had 2,149,000 and 1,895,000 weighted average equity awards outstanding at June 30, 2016 and 2015 , respectively, that were not dilutive for the purposes of inclusion in the calculation of diluted earnings per share but could potentially become dilutive in future periods. |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation Under our stock-based employee compensation plan, referred to as the Fuel Tech, Inc. 2014 Long-Term Incentive Plan (Incentive Plan), awards may be granted to participants in the form of Non-Qualified Stock Options, Incentive Stock Options, Stock Appreciation Rights, Restricted Stock, Restricted Stock Units (“RSUs”), Performance Awards, Bonuses or other forms of share-based or non-share-based awards or combinations thereof. Participants in the Incentive Plan may be our directors, officers, employees, consultants or advisors (except consultants or advisors in capital-raising transactions) as the directors determine are key to the success of our business. There are a maximum of 4,400,676 shares that may be issued or reserved for awards to participants under the Incentive Plan. As of June 30, 2016 , Fuel Tech had 594,208 shares available for share-based awards under the 2014 Plan. Stock-based compensation is included in selling, general, and administrative costs in our Consolidated Statements of Operations. The components of stock-based compensation for the three and six month periods ended June 30, 2016 and 2015 were as follows: Three Months Ended Six Months Ended 2016 2015 2016 2015 Stock options and restricted stock units $ 580 $ 561 $ 1,041 $ 833 Tax benefit of stock-based compensation expense — (217 ) — (320 ) After-tax effect of stock-based compensation $ 580 $ 344 $ 1,041 $ 513 Stock Options Stock options granted to employees under the Incentive Plans have a 10 -year life and they vest as follows: 50% after the second anniversary of the award date, 25% after the third anniversary, and the final 25% after the fourth anniversary of the award date. Fuel Tech calculates stock compensation expense for employee option awards based on the grant date fair value of the award, less expected annual forfeitures, and recognizes expense on a straight-line basis over the four -year service period of the award. Stock options granted to members of our board of directors vest immediately. Stock compensation for these awards is based on the grant date fair value of the award and is recognized in expense immediately. Fuel Tech uses the Black-Scholes option pricing model to estimate the grant date fair value of employee stock options. The principal variable assumptions utilized in valuing options and the methodology for estimating such model inputs include: (1) risk-free interest rate – an estimate based on the yield of zero–coupon treasury securities with a maturity equal to the expected life of the option; (2) expected volatility – an estimate based on the historical volatility of Fuel Tech’s Common Stock for a period equal to the expected life of the option; and (3) expected life of the option – an estimate based on historical experience including the effect of employee terminations. Stock option activity for Fuel Tech’s Incentive Plans for the six months ended June 30, 2016 was as follows: Number of Options Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term Aggregate Intrinsic Value Outstanding on January 1, 2016 1,191,125 $ 10.48 Granted 81,000 1.58 Exercised — — Expired or forfeited (150,375 ) 15.79 Outstanding on June 30, 2016 1,121,750 $ 9.12 4.74 $ — Exercisable on June 30, 2016 1,121,750 $ 9.12 4.74 $ — As of June 30, 2016 , there was no unrecognized compensation cost related to non-vested stock options granted under the Incentive Plans. Restricted Stock Units Restricted stock units (RSUs) granted to employees vest over time based on continued service (typically vesting over a period between two and four years). Such time-vested RSUs are valued at the date of grant using the intrinsic value method based on the closing price of the Common Shares on the grant date. Compensation cost, adjusted for estimated forfeitures, is amortized on a straight-line basis over the requisite service period. In addition to the time vested RSUs described above, performance-based RSU agreements (the Agreements) are issued annually to our Executive Chairman; President/Chief Executive Officer; Senior Vice President, Fuel Conversion Marketing; Senior Vice President, Treasurer/Chief Financial Officer; and Senior Vice President, General Counsel and Corporate Secretary. The Agreements provide each participating executive the opportunity to earn three types of awards with each award type specifying a targeted number of RSUs that may be granted to each executive based on either the individual performance of the executive or our relative performance compared to a peer group, as determined by the award type. The Compensation Committee of our Board of Directors (the Committee) determines the extent to which, if any, RSUs will be granted based on the achievement of the applicable performance criteria specified in the Agreement. This determination will be made following the completion of the applicable performance period (each a Determination Date). Such performance based awards include the following: • The first type of award is based on individual performance during the respective calendar year as determined by the Committee based on performance criteria specified in the Agreement. These awards will vest over a three year period beginning on the Determination Date. We estimated the fair value of these performance-based RSU awards on the date of the Agreement using the trading price of the Company’s stock and our estimate of the probability that the specified performance criteria will be met. The fair value measurement and probability estimate will be re-measured each reporting date until the Determination Date, at which time the final award amount will be known. For these job performance-based awards, we amortize compensation costs over the requisite service period, adjusted for estimated forfeitures, for each separately vesting tranche of the award. • The second type of RSU award contains a targeted number of RSUs to be granted based on the Company’s revenue growth relative to a specified peer group during a period of two calendar years. These awards vest 67% on the second anniversary of the Agreement date and 33% on the third anniversary of the Agreement date. We estimated the fair value of these performance-based RSU awards on the Agreement date using the trading price of the Company’s stock on the date of determination and our estimate of the probability that the specified performance criteria will be met. For these revenue growth performance-based awards, we amortize compensation costs over the requisite service period, adjusted for estimated forfeitures, for each separately vesting tranche of the award. • The third type of RSU award contains a targeted number of RSUs to be granted based on the total shareholder return (TSR) of the Company’s common stock relative to a specified peer group during a period of two calendar years. These awards vest 67% on the second anniversary of the Agreement date and 33% on the third anniversary of the Agreement date. We estimated the fair value of these market-based RSU awards on the Agreement date using a Monte Carlo valuation methodology and amortize the fair value over the requisite service period for each separately vesting tranche of the award. The principal variable assumptions utilized in valuing these RSUs under this valuation methodology include the risk-free interest rate, stock volatility, and correlations between our stock price and the stock prices of a peer group of companies. At June 30, 2016 , there is $2,837 of unrecognized compensation costs related to restricted stock unit awards to be recognized over a weighted average period of 1.88 years. A summary of restricted stock unit activity for the six months ended June 30, 2016 is as follows: Shares Weighted Average Grant Date Fair Value Unvested restricted stock units at January 1, 2016 1,204,883 $ 4.21 Granted 845,862 1.88 Forfeited (132,499 ) 5.11 Vested (381,916 ) 4.36 Unvested restricted stock units at June 30, 2016 1,536,330 $ 2.81 The fair value of restricted stock that vested during the six month period ending June 30, 2016 was $644 . Deferred Directors Fees In addition to the Incentive Plans, Fuel Tech has a Deferred Compensation Plans for Directors (Deferred Plan). Under the terms of the Deferred Plan, Directors can elect to defer Directors’ fees for shares of Fuel Tech Common Stock that are issuable at a future date as defined in the agreement. In accordance with ASC 718, Fuel Tech accounts for these awards as equity awards. In the six -month periods ended June 30, 2016 and 2015 , Fuel Tech recorded no stock-based compensation expense under the Deferred Plan. |
Debt Financing
Debt Financing | 6 Months Ended |
Jun. 30, 2016 | |
Debt Disclosure [Abstract] | |
Debt Financing | Debt Financing On June 30, 2015, Fuel Tech amended its existing revolving credit facility (the Facility) with JPMorgan Chase Bank, N.A. (JPM Chase) to extend the maturity date through June 30, 2017. The total availability under the facility was $15,000 and contained a provision to increase the facility up to a total principal amount of $25,000 upon approval from JPM Chase. The Facility was unsecured, bears interest at a rate of LIBOR plus 300 basis points , and has the Company’s Italian subsidiary, Fuel Tech S.r.l., as a guarantor. Fuel Tech can use this Facility for cash advances and standby letters of credit. As of June 30, 2016 and December 31, 2015 , there were no outstanding borrowings on the credit facility. The Facility contained several debt covenants with which the Company must comply on a quarterly or annual basis. The Facility required a minimum trailing-twelve month EBITDA of $500 for the quarters ending March 31, 2016 and June 30, 2016; Beginning with the fiscal quarter ended September 30, 2016, the Facility required a minimum EBITDA for the trailing twelve-month period then ended of not less than $1,000 . EBITDA includes after tax earnings with add backs for interest expense, income taxes, depreciation and amortization, stock-based compensation expense, and other non-cash items. This covenant was waived by our bank through the period ending December 31, 2015. In addition, the Facility required a minimum working capital requirement of $35,000 , starting as of December 31, 2015. Finally, the Facility had an annual capital expenditure limit of $5,000 . On May 9, 2016, the Company amended its existing U.S. Domestic credit facility with JPM Chase such that the financial covenants as set forth in the credit agreement would not be measured for the period ending as of March 31, 2016, and were removed in their entirety from the Facility. The credit availability under the Facility has been reduced from $15,000 to $7,000 with this amendment, and further, JPM Chase's then current Revolving Commitment under the Facility is now secured by cash held by the Company in a separate restricted use designated JPM Chase deposit account. The amount of credit available to the Company under the Facility was $7,000 from the date of the effective date of the amended facility through May 31, 2016, at which time the credit available to the Company under the Facility was reduced to $6,000 from June 1, 2016 through July 31, 2016, at which time the credit available to the Company under the Facility was reduced to $5,000 and will remain as such until the Maturity Date of the Facility on June 30, 2017. During the entire period of the Facility the Company must maintain sufficient cash balances in a segregated deposit account equal to the amount of the Facility and will fully pledge such cash as collateral to the bank to support the credit available to the Company under the Facility. At June 30, 2016 and December 31, 2015 , the Company had outstanding standby letters of credit and bank guarantees totaling approximately $5,012 and $7,803 , respectively, under the Facility in connection with contracts in process. Fuel Tech is committed to reimbursing the issuing bank for any payments made by the bank under these instruments. At June 30, 2016 and December 31, 2015 , there were no cash borrowings under the domestic revolving credit facility. The Company pays a commitment fee of 0.25% per year on the unused portion of the revolving credit facility. At June 30, 2016 and December 31, 2015, approximately $988 and $7,197 was available for future borrowings under the Facility. On June 24, 2016, Beijing Fuel Tech Environmental Technologies Company, Ltd. (Beijing Fuel Tech), a wholly-owned subsidiary of Fuel Tech, entered into a new revolving credit facility (the China Facility) agreement with JPM Chase for RMB 6.5 million (approximately $979 ), which expires on June 23, 2017. The Company intends to renew the China Facility at its maturity. This new credit facility replaced the previous RMB 35 million facility that expired on June 24, 2016. The facility is unsecured, bears interest at a rate of 125% of the People’s Bank of China (PBOC) Base Rate, and is guaranteed by Fuel Tech. Beijing Fuel Tech can use this facility for cash advances and bank guarantees. As of June 30, 2016 and December 31, 2015, Beijing Fuel Tech had no cash borrowings under the China Facility. At June 30, 2016 and December 31, 2015 , the Company had outstanding standby letters of credit and bank guarantees totaling approximately $103 and $57 , respectively, on its Beijing Fuel Tech revolving credit facility in connection with contracts in process. At June 30, 2016 and December 31, 2015 , approximately $876 and $5,335 was available for future borrowings. In the event of default on either the domestic facility or the China facility, the cross default feature in each allows the lending bank to accelerate the payments of any amounts outstanding and may, under certain circumstances, allow the bank to cancel the facility. If the Company were unable to obtain a waiver for a breach of covenant and the bank accelerated the payment of any outstanding amounts, such acceleration may cause the Company’s cash position to deteriorate or, if cash on hand were insufficient to satisfy the payment due, may require the Company to obtain alternate financing to satisfy the accelerated payment. Interest payments in the amount of $0 and $30 were made during the six -month period ended June 30, 2016 and 2015 , and $0 and $3 for the three-month periods then ended. |
Business Segment and Geographic
Business Segment and Geographic Financial Data | 6 Months Ended |
Jun. 30, 2016 | |
Segment Reporting [Abstract] | |
Business Segment and Geographic Financial Data | Business Segment and Geographic Financial Data Business Segment Financial Data We segregate our financial results into three reportable segments representing three broad technology segments as follows: • The Air Pollution Control technology segment includes technologies to reduce NO x emissions in flue gas from boilers, incinerators, furnaces and other stationary combustion sources. These include Low and Ultra Low NO x Burners (LNB and ULNB), Over-Fire Air (OFA) systems, NO x OUT ® and HERT™ Selective Non-Catalytic Reduction (SNCR) systems, and Advanced Selective Catalytic Reduction (ASCR ™ ) systems. Our ASCR systems include ULNB, OFA, and SNCR components, along with a downsized SCR catalyst, Ammonia Injection Grid (AIG), and Graduated Straightening Grid GSG™ systems to provide high NO x reductions at significantly lower capital and operating costs than conventional SCR systems. The NO x OUT CASCADE ® and NO x OUT-SCR ® processes are more basic, using just SNCR and SCR catalyst components. ULTRA™ technology creates ammonia at a plant site using safe urea for use with any SCR application. Flue Gas Conditioning systems are chemical injection systems offered in markets outside the U.S. and Canada to enhance electrostatic precipitator and fabric filter performance in controlling particulate emissions. • The FUEL CHEM ® technology segment, which uses chemical processes in combination with advanced CFD and CKM boiler modeling, for the control of slagging, fouling, corrosion, opacity and other sulfur trioxide-related issues in furnaces and boilers through the addition of chemicals into the furnace using TIFI ® Targeted In-Furnace Injection™ technology. • The Fuel Conversion segment represents a new business initiative we commenced in 2014. We acquired intellectual property rights and know-how related to the CARBONITE® fuel conversion process and technology. This process can convert coals of various grades into value-added products that are high in energy content, carbon-rich and less pollutive. This technology has a number of potential applications including certain coal replacement, electric arc furnace (EAF) reductant, ferro-alloy feedstock, absorbent and Hg reduced carbon stock. During 2015 and 2016, we have been testing and developing the engineered carbon products for specific markets. We are in the process of evaluating the commercialization of these product offerings with prospective customers and considering alternatives. We have earned no significant revenue other than for test products from perspective customers for the six -month period ended June 30, 2016 and 2015 . The “Other” classification includes those profit and loss items not allocated to either reportable segment. There are no inter-segment sales that require elimination. We evaluate performance and allocates resources based on reviewing gross margin by reportable segment. The accounting policies of the reportable segments are the same as those described in the summary of significant accounting policies (Note 1 in our annual report on Form 10-K). We do not review assets by reportable segment, but rather, in aggregate for the Company as a whole. Information about reporting segment net sales and gross margin are provided below: Three months ended June 30, 2016 Air Pollution Control Segment FUEL CHEM Segment Fuel Conversion Segment Other Total Revenues from external customers $ 10,031 $ 5,144 $ — $ — $ 15,175 Cost of sales (7,152 ) (2,443 ) — — (9,595 ) Gross margin 2,879 2,701 — — 5,580 Selling, general and administrative — — — (6,760 ) (6,760 ) Research and development — — (827 ) (295 ) (1,122 ) Operating income (loss) $ 2,879 $ 2,701 $ (827 ) $ (7,055 ) $ (2,302 ) Three months ended June 30, 2015 Air Pollution Control Segment FUEL CHEM Segment Fuel Conversion Segment Other Total Revenues from external customers $ 11,087 $ 7,596 $ — $ — $ 18,683 Cost of sales (7,769 ) (3,778 ) — — (11,547 ) Gross margin 3,318 3,818 — — 7,136 Selling, general and administrative — — — (8,400 ) (8,400 ) Research and development — — (629 ) (353 ) (982 ) Operating income (loss) $ 3,318 $ 3,818 $ (629 ) $ (8,753 ) $ (2,246 ) Six months ended June 30, 2016 Air Pollution Control Segment FUEL CHEM Segment Fuel Conversion Segment Other Total Revenues from external customers $ 23,021 $ 9,976 $ — $ — $ 32,997 Cost of sales (16,471 ) (4,898 ) — — (21,369 ) Gross margin 6,550 5,078 — — 11,628 Selling, general and administrative — — — (14,239 ) (14,239 ) Research and development — — (1,514 ) (766 ) (2,280 ) Operating income (loss) $ 6,550 $ 5,078 $ (1,514 ) $ (15,005 ) $ (4,891 ) Six months ended June 30, 2015 Air Pollution Control Segment FUEL CHEM Segment Fuel Conversion Segment Other Total Revenues from external customers $ 17,944 $ 15,842 $ — $ — $ 33,786 Cost of sales (12,090 ) (7,894 ) — — (19,984 ) Gross margin 5,854 7,948 — — 13,802 Selling, general and administrative — — — (16,603 ) (16,603 ) Research and development — — (1,101 ) (753 ) (1,854 ) Operating income (loss) $ 5,854 $ 7,948 $ (1,101 ) $ (17,356 ) $ (4,655 ) Geographic Segment Financial Data Information concerning our operations by geographic area is provided below. Revenues are attributed to countries based on the location of the customer. Assets are those directly associated with operations of the geographic area. Three Months Ended Six Months Ended 2016 2015 2016 2015 Revenues: United States $ 12,255 $ 11,901 $ 26,685 $ 24,476 Foreign 2,920 6,782 6,312 9,310 $ 15,175 $ 18,683 $ 32,997 $ 33,786 June 30, December 31, Assets: United States $ 46,093 $ 47,437 Foreign 22,605 28,574 $ 68,698 $ 76,011 |
Contingencies
Contingencies | 6 Months Ended |
Jun. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies Fuel Tech issues a standard product warranty with the sale of its products to customers. Our recognition of warranty liability is based primarily on analyses of warranty claims experienced in the preceding years as the nature of our historical product sales for which we offer a warranty are substantially unchanged. This approach provides an aggregate warranty accrual that is historically aligned with actual warranty claims experienced. Changes in the warranty liability for the six months June 30, 2016 and 2015 , are summarized below: Six Months Ended 2016 2015 Aggregate product warranty liability at beginning of period $ 268 $ 268 Net aggregate expense (benefit) related to product warranties (109 ) 8 Aggregate reductions for payments — (8 ) Aggregate product warranty liability at end of period $ 159 $ 268 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company’s effective tax rate is 2% and 37% for the six-month periods ended June 30, 2016 and 2015 , respectively. The Company's effective tax rate differs from the statutory federal tax rate of 34% for the three-month period ended June 30, 2016 primarily due to a full valuation allowance recorded on our United States deferred tax assets since we cannot anticipate when or if we will have sufficient taxable income to utilize the deferred tax assets in the future. Further, our effective tax rate differs from the statutory federal tax rate due to state taxes, differences between U.S. and foreign tax rates, foreign losses incurred with no related tax benefit, non-deductible commissions, and non-deductible meals and entertainment expenses for the three-month periods ended June 30, 2016 and 2015 , respectively. Fuel Tech had unrecognized tax benefits of $140 as of both June 30, 2016 and December 31, 2015 , all of which, if ultimately recognized, will reduce Fuel Tech's annual effective tax rate. Effective beginning April 1, 2016, Fuel Tech prospectively adopted ASU 2015-17, "Balance Sheet Classification of Deferred Taxes" and as a result classified all deferred tax assets and liabilities as non-current. |
Goodwill and Other Intangibles
Goodwill and Other Intangibles | 6 Months Ended |
Jun. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangibles | Goodwill and Other Intangibles Goodwill is allocated among and evaluated for impairment at the reporting unit level, which is defined as an operating segment or one level below an operating segment. Fuel Tech has two reporting units for goodwill evaluation purposes: the FUEL CHEM ® technology segment and the APC technology segment. There is no goodwill associated with our APC or Fuel Conversion segments. At both June 30, 2016 and December 31, 2015 , our entire goodwill balance of $2,116 was allocated to the FUEL CHEM ® technology segment. Goodwill is allocated to each of our reporting units after considering the nature of the net assets giving rise to the goodwill and how each reporting unit would enjoy the benefits and synergies of the net assets acquired. There were no indications of goodwill impairment in the six months ended June 30, 2016 and 2015 . Fuel Tech reviews other intangible assets, which include customer lists and relationships, covenants not to compete, patent assets, tradenames, and acquired technologies, for impairment on a recurring basis or when events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. In the event that impairment indicators exist, a further analysis is performed and if the sum of the expected undiscounted future cash flows resulting from the use of the asset is less than the carrying amount of the asset, an impairment loss equal to the excess of the asset’s carrying value over its fair value is recorded. Management considers historical experience and all available information at the time the estimates of future cash flows are made, however, the actual cash values that could be realized may differ from those that are estimated. There were no indications of intangible asset impairment in the six -month periods ended June 30, 2016 and 2015 . |
Fair Value
Fair Value | 6 Months Ended |
Jun. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value | Fair Value Measurements The Company applies authoritative accounting guidance for fair value measurements of financial and nonfinancial assets and liabilities. This guidance defines fair value, establishes a consistent framework for measuring fair value and expands disclosure for each major asset and liability category measured at fair value on either a recurring or nonrecurring basis and clarifies that fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, the standard establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: • Level 1 – Observable inputs to the valuation methodology such as quoted prices in active markets for identical assets or liabilities • Level 2 – Inputs to the valuation methodology including quoted prices for similar assets or liabilities in active markets, quoted prices for identical assets of liabilities in inactive markets, inputs other than quoted prices that are observable for the asset or liability, and inputs that are derived principally from or corroborated by observable market data by correlation or other means • Level 3 – Significant unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own estimates and assumptions or those expected to be used by market participants. Generally, these fair value measures are model-based valuation techniques such as discounted cash flows, option pricing models, and other commonly used valuation techniques The fair value of our marketable securities was $ 7 and $ 19 at June 30, 2016 and December 31, 2015 , respectively, and was determined using quoted prices in active markets for identical assets (Level 1 fair value measurements). Transfers between levels of the fair value hierarchy are recognized based on the actual date of the event or change in circumstances that caused the transfer. We had no assets or liabilities that were valued using level 2 or level 3 inputs and therefore there were no transfers between levels of the fair value hierarchy during the six -month periods ended June 30, 2016 and 2015 . |
General (Policies)
General (Policies) | 6 Months Ended |
Jun. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X of the Exchange Act. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, the financial statements reflect all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation of the statements for the periods presented. All significant intercompany transactions and balances have been eliminated. The results of operations for the three and six months ended June 30, 2016 are not necessarily indicative of the results to be expected for the full year ending December 31, 2016. For further information, refer to the audited consolidated financial statements and footnotes thereto included in Fuel Tech’s Annual Report on Form 10-K for the year ended December 31, 2015 as filed with the Securities and Exchange Commission. |
Summary of Significant Accoun21
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
Revenue Recognition Policy | Revenues from the sales of chemical products are recorded when title transfers, either at the point of shipment or at the point of destination, depending on the contract with the customer. Fuel Tech uses the percentage of completion method of accounting for equipment construction and license contracts that are sold within the Air Pollution Control technology segment. Under the percentage of completion method, revenues are recognized as work is performed based on the relationship between actual construction costs incurred and total estimated costs at completion. Construction costs include all direct costs such as materials, labor, and subcontracting costs, and indirect costs allocable to the particular contract such as indirect labor, tools and equipment, and supplies. Revisions in completion estimates and contract values are made in the period in which the facts giving rise to the revisions become known and can influence the timing of when revenues are recognized under the percentage of completion method of accounting. Such revisions have historically not had a material effect on the amount of revenue recognized. The completed contract method is used for certain contracts that are not long-term in nature or when reasonably dependable estimates of the percentage of completion cannot be made. When the completed contract method is used, revenue and costs are deferred until the contract is substantially complete, which usually occurs upon customer acceptance of the installed product. Provisions are made for estimated losses on uncompleted contracts in the period in which such losses are determined. A typical contract will have three or four critical operational measurements that, when achieved, serve as the basis for us to invoice the customer via progress billings. At a minimum, these measurements will include the generation of engineering drawings, the shipment of equipment and the completion of a system performance test. As part of most of its contractual APC project agreements, Fuel Tech will agree to customer-specific acceptance criteria that relate to the operational performance of the system that is being sold. These criteria are determined based on mathematical modeling that is performed by Fuel Tech personnel, which is based on operational inputs that are provided by the customer. The customer will warrant that these operational inputs are accurate as they are specified in the binding contractual agreement. Further, the customer is solely responsible for the accuracy of the operating condition information; typically all performance guarantees and equipment warranties granted by us are voidable if the operating condition information is inaccurate or is not met. Accounts receivable includes unbilled receivables, representing revenues recognized in excess of billings on uncompleted contracts under the percentage of completion method of accounting. |
Cost of Sales, Policy | . |
Selling, General and Administrative Expenses, Policy | . |
New Accounting Pronouncements | In November 2015, the FASB issued ASU 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes. The amendments in this Update require that deferred tax liabilities and assets be classified as non-current in a classified statement of financial position. Current accounting principles require an entity to separate deferred income tax liabilities and assets into current and non-current amounts in a classified statement of financial position. ASU 2015-17 is effective for interim and annual periods beginning after December 15, 2016. The Company elected to early adopt ASU 2015-17 prospectively for the interim period beginning in the second quarter of 2016; thus, the prior reporting period was not retrospectively adjusted. See Note 11, Income Taxes, for further discussion. Recently Issued Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (FASB) issued ASU 2014-09 "Revenue from Contracts with Customers" (Topic 606). This new accounting guidance on revenue recognition provides for a single five-step model to be applied to all revenue contracts with customers. The new standard also requires additional financial statement disclosures that will enable users to understand the nature, amount, timing and uncertainty of revenue and cash flows relating to customer contracts. In August 2015, the FASB approved a one-year deferral to January 1, 2018. Early adoption is permitted as of the original effective date. The standard may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of adoption. We are currently evaluating the impact of the new guidance on our financial statements and have not yet selected a transition approach to implement the standard. In July 2015, the FASB issued ASU 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory. This new accounting guidance more clearly articulates the requirements for the measurement and disclosure of inventory. Topic 330, Inventory, currently requires an entity to measure inventory at the lower of cost or market. Market could be replacement cost, net realizable value, or net realizable value less an approximately normal profit margin. This new accounting guidance requires the measurement of inventory at lower of cost and net realizable value. ASU 2015-11 will be effective for the Company beginning on January 1, 2017. The adoption of this guidance in not expected to have a material impact on the Company’s consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). The amendments in this Update increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. ASU 2016-02 will be effective for the Company beginning on January 1, 2019. We are currently evaluating the impact of the new guidance on our financial statements and have not yet selected a transition approach to implement the standard. In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. The amendments in this Update simplify the income tax effects, minimum statutory tax withholding requirements and impact of forfeitures related to how share-based payments are accounted for and presented in the financial statements. ASU 2016-09 will be effective for the Company beginning on January 1, 2017. We are currently evaluating the impact of the new guidance on our financial statements and have not yet selected a transition approach to implement the statement. |
Available-for-Sale Marketable22
Available-for-Sale Marketable Securities (Policies) | 6 Months Ended |
Jun. 30, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Marketable Securities, Available-for-sale Securities, Policy | Available-for-Sale Marketable Securities At the time of purchase, marketable securities are classified as available-for-sale as management has the intent and ability to hold such securities for an indefinite period of time, but not necessarily to maturity. Any decision to sell available-for-sale securities would be based on various factors, including, but not limited to asset/liability management strategies, changes in interest rates or prepayment risks, and liquidity needs. Available-for-sale securities are carried at fair value with unrealized gains and losses, net of related deferred income taxes, recorded in equity as a separate component of other comprehensive income (OCI). Our marketable securities consist of a single equity investment with a fair value of $ 7 and $ 19 and no cost basis at June 30, 2016 and December 31, 2015 , respectively. Purchases and sales of securities are recognized on a trade date basis. Realized securities gains or losses are reported in other income/(expense) in the Consolidated Statements of Operations. The cost of securities sold is based on the specific identification method. On a quarterly basis, we make an assessment to determine if there have been any events or circumstances to indicate whether a security with an unrealized loss is impaired on an other-than-temporary (OTTI) basis. This determination requires significant judgment. OTTI is considered to have occurred (1) if management intends to sell the security; (2) if it is more likely than not we will be required to sell the security before recovery of its amortized cost basis; or (3) the present value of the expected cash flows is not sufficient to recover the entire amortized cost basis. The credit-related OTTI, represented by the expected loss in principal, is recognized in non-interest income, while noncredit-related OTTI is recognized in OCI. For securities which we do expect to sell, all OTTI is recognized in earnings. Presentation of OTTI is made in the income statement on a gross basis with a reduction for the amount of OTTI recognized in OCI. Once an other-than-temporary impairment is recorded, when future cash flows can be reasonably estimated, future cash flows are re-allocated between interest and principal cash flows to provide for a level-yield on the security. We have not experienced any other-than-temporary impairments during the periods ended June 30, 2016 and 2015 . |
Accumulated Other Comprehensi23
Accumulated Other Comprehensive Loss (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The changes in accumulated other comprehensive loss by component were as follows: Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 Foreign currency translation Balance at beginning of period $ (1,139 ) $ (632 ) $ (1,568 ) $ (471 ) Other comprehensive loss: Foreign currency translation adjustments (1) (111 ) 97 318 (64 ) Balance at end of period $ (1,250 ) $ (535 ) $ (1,250 ) $ (535 ) Available-for-sale marketable securities Balance at beginning of period $ 9 $ 23 $ 12 $ 23 Other comprehensive income: Net unrealized holding (loss) gain (2) (5 ) — (8 ) — Deferred income taxes (2) — — — Total other comprehensive (loss) income (5 ) — (8 ) — Balance at end of period $ 4 $ 23 $ 4 $ 23 Total accumulated other comprehensive loss $ (1,246 ) $ (512 ) $ (1,246 ) $ (512 ) (1) In all periods presented, there were no tax impacts related to rate changes and no amounts were reclassified to earnings. (2) In all periods presented, there were no realized holding gains or losses and therefore no amounts were reclassified to earnings. |
Earnings per Share (Tables)
Earnings per Share (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table sets forth the weighted-average shares used in calculating the earnings per share for the three and six month periods ended June 30, 2016 and 2015 . Three Months Ended Six Months Ended 2016 2015 2016 2015 Basic weighted-average shares 23,381,000 23,140,000 23,283,000 23,034,000 Conversion of unsecured loan notes — — — — Unexercised options and unvested RSUs — — — — Diluted weighted-average shares 23,381,000 23,140,000 23,283,000 23,034,000 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs | The components of stock-based compensation for the three and six month periods ended June 30, 2016 and 2015 were as follows: Three Months Ended Six Months Ended 2016 2015 2016 2015 Stock options and restricted stock units $ 580 $ 561 $ 1,041 $ 833 Tax benefit of stock-based compensation expense — (217 ) — (320 ) After-tax effect of stock-based compensation $ 580 $ 344 $ 1,041 $ 513 |
Schedule of Share-based Compensation, Stock Options, Activity | Stock option activity for Fuel Tech’s Incentive Plans for the six months ended June 30, 2016 was as follows: Number of Options Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term Aggregate Intrinsic Value Outstanding on January 1, 2016 1,191,125 $ 10.48 Granted 81,000 1.58 Exercised — — Expired or forfeited (150,375 ) 15.79 Outstanding on June 30, 2016 1,121,750 $ 9.12 4.74 $ — Exercisable on June 30, 2016 1,121,750 $ 9.12 4.74 $ — |
Schedule of Nonvested Restricted Stock Units Activity | A summary of restricted stock unit activity for the six months ended June 30, 2016 is as follows: Shares Weighted Average Grant Date Fair Value Unvested restricted stock units at January 1, 2016 1,204,883 $ 4.21 Granted 845,862 1.88 Forfeited (132,499 ) 5.11 Vested (381,916 ) 4.36 Unvested restricted stock units at June 30, 2016 1,536,330 $ 2.81 |
Business Segment and Geograph26
Business Segment and Geographic Financial Data (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Information about reporting segment net sales and gross margin are provided below: Three months ended June 30, 2016 Air Pollution Control Segment FUEL CHEM Segment Fuel Conversion Segment Other Total Revenues from external customers $ 10,031 $ 5,144 $ — $ — $ 15,175 Cost of sales (7,152 ) (2,443 ) — — (9,595 ) Gross margin 2,879 2,701 — — 5,580 Selling, general and administrative — — — (6,760 ) (6,760 ) Research and development — — (827 ) (295 ) (1,122 ) Operating income (loss) $ 2,879 $ 2,701 $ (827 ) $ (7,055 ) $ (2,302 ) Three months ended June 30, 2015 Air Pollution Control Segment FUEL CHEM Segment Fuel Conversion Segment Other Total Revenues from external customers $ 11,087 $ 7,596 $ — $ — $ 18,683 Cost of sales (7,769 ) (3,778 ) — — (11,547 ) Gross margin 3,318 3,818 — — 7,136 Selling, general and administrative — — — (8,400 ) (8,400 ) Research and development — — (629 ) (353 ) (982 ) Operating income (loss) $ 3,318 $ 3,818 $ (629 ) $ (8,753 ) $ (2,246 ) Six months ended June 30, 2016 Air Pollution Control Segment FUEL CHEM Segment Fuel Conversion Segment Other Total Revenues from external customers $ 23,021 $ 9,976 $ — $ — $ 32,997 Cost of sales (16,471 ) (4,898 ) — — (21,369 ) Gross margin 6,550 5,078 — — 11,628 Selling, general and administrative — — — (14,239 ) (14,239 ) Research and development — — (1,514 ) (766 ) (2,280 ) Operating income (loss) $ 6,550 $ 5,078 $ (1,514 ) $ (15,005 ) $ (4,891 ) |
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area | Information concerning our operations by geographic area is provided below. Revenues are attributed to countries based on the location of the customer. Assets are those directly associated with operations of the geographic area. Three Months Ended Six Months Ended 2016 2015 2016 2015 Revenues: United States $ 12,255 $ 11,901 $ 26,685 $ 24,476 Foreign 2,920 6,782 6,312 9,310 $ 15,175 $ 18,683 $ 32,997 $ 33,786 |
Schedule of Disclosure on Geographic Areas, Long-Lived Assets in Individual Foreign Countries by Country | June 30, December 31, Assets: United States $ 46,093 $ 47,437 Foreign 22,605 28,574 $ 68,698 $ 76,011 |
Contingencies (Tables)
Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Product Warranty Liability | Changes in the warranty liability for the six months June 30, 2016 and 2015 , are summarized below: Six Months Ended 2016 2015 Aggregate product warranty liability at beginning of period $ 268 $ 268 Net aggregate expense (benefit) related to product warranties (109 ) 8 Aggregate reductions for payments — (8 ) Aggregate product warranty liability at end of period $ 159 $ 268 |
Summary of Significant Accoun28
Summary of Significant Accounting Policies (Detail) $ in Thousands | Jul. 31, 2016USD ($) | Jun. 30, 2016USD ($)contractmeasurementunit | Dec. 31, 2015USD ($)contract |
Number of contracts in progress that were identified as a loss contract (in contracts) | contract | 2 | 2 | |
Loss on contract termination | $ 3 | $ 3 | |
Unbilled receivables, current | 7,292 | 7,312 | |
Billings in excess of cost, current | $ 1,206 | $ 1,858 | |
Number of units with APC technology (in units) | unit | 1,000 | ||
Minimum | |||
Contract term (in months) | 8 months | ||
Critical operational measurements (in measurements) | measurement | 3 | ||
Maximum | |||
Contract term (in months) | 16 months | ||
Critical operational measurements (in measurements) | measurement | 4 | ||
Scenario, Forecast | |||
Decrease in Restricted Cash | $ 1,000 |
Available-for-Sale Marketable29
Available-for-Sale Marketable Securities (Detail) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Investments, Debt and Equity Securities [Abstract] | ||
Marketable securities, fair value | $ 7 | $ 19 |
Accumulated Other Comprehensi30
Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Increase (Decrease) in Accumulated Other Comprehensive Loss [Roll Forward] | ||||
Balance at beginning of period | $ 58,974 | |||
Balance at end of period | $ 54,885 | 54,885 | ||
Foreign currency translation | ||||
Increase (Decrease) in Accumulated Other Comprehensive Loss [Roll Forward] | ||||
Balance at beginning of period | (632) | $ (1,139) | (1,568) | $ (471) |
Total other comprehensive (loss) income | (111) | 97 | 318 | (64) |
Balance at end of period | (1,250) | (535) | (1,250) | (535) |
Available-for-sale marketable securities | ||||
Increase (Decrease) in Accumulated Other Comprehensive Loss [Roll Forward] | ||||
Balance at beginning of period | 23 | 9 | 12 | 23 |
Other comprehensive (loss) income | (5) | 0 | (8) | 0 |
Deferred income taxes | 0 | 0 | 0 | |
Total other comprehensive (loss) income | (5) | 0 | (8) | 0 |
Balance at end of period | 4 | 23 | 4 | 23 |
Total accumulated other comprehensive loss | ||||
Increase (Decrease) in Accumulated Other Comprehensive Loss [Roll Forward] | ||||
Balance at end of period | $ (1,246) | $ (512) | $ (1,246) | $ (512) |
Treasury Stock (Detail)
Treasury Stock (Detail) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Equity [Abstract] | ||
Treasury stock (in shares) | 354,889 | 251,792 |
Cost of common stock held in treasury | $ 1,214 | $ 1,042 |
Earnings per Share (Detail) - B
Earnings per Share (Detail) - Basic Earnings Per Share - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Earnings Per Share [Abstract] | ||||
Basic weighted-average shares (in shares) | 23,381 | 23,140 | 23,283 | 23,034 |
Conversion of unsecured loan notes (in shares) | 0 | 0 | 0 | 0 |
Unexercised options and unvested RSUs (in shares) | 0 | 0 | 0 | 0 |
Diluted weighted-average shares (in shares) | 23,381 | 23,140 | 23,283 | 23,034 |
Earnings per Share (Detail)
Earnings per Share (Detail) - shares shares in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Earnings Per Share [Abstract] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 2,149 | 1,895 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Detail) $ in Thousands | 6 Months Ended |
Jun. 30, 2016USD ($)shares | |
Stock Options | |
Award vesting period | 10 years |
Award service period (in years) | 4 years |
Restricted Stock Units (RSUs) | |
Award vesting period | 3 years |
Unrecognized compensation cost | $ | $ 2,837 |
Unrecognized compensation cost, period of recognition (in years) | 1 year 320 days |
Restricted Stock | |
Fair value of stock vested | $ | $ 644 |
2014 Plan | |
Number of shares originally reserved | shares | 4,400,676 |
Number of shares available for grant | shares | 594,208 |
Second Anniversary of Award Date | Stock Options | |
Percent of options vesting | 50.00% |
Second Anniversary of Award Date | Restricted Stock Units (RSUs) | |
Percentage of restricted stock units vesting | 67.00% |
Peer company review period (in years) | 2 years |
Second Anniversary of Award Date | Restricted Stock Units TSR | |
Percentage of restricted stock units vesting | 67.00% |
Peer company review period (in years) | 2 years |
Third Anniversary of Award Date | Stock Options | |
Percent of options vesting | 25.00% |
Third Anniversary of Award Date | Restricted Stock Units (RSUs) | |
Percentage of restricted stock units vesting | 33.00% |
Third Anniversary of Award Date | Restricted Stock Units TSR | |
Percentage of restricted stock units vesting | 33.00% |
Fourth Anniversary of Award Date | Stock Options | |
Percent of options vesting | 25.00% |
Minimum | Restricted Stock Units (RSUs) | |
Award vesting period | 2 years |
Maximum | Restricted Stock Units (RSUs) | |
Award vesting period | 4 years |
Stock-Based Compensation - Expe
Stock-Based Compensation - Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||
Stock options and restricted stock units | $ 580 | $ 561 | $ 1,041 | $ 833 |
Tax benefit of stock-based compensation expense | 0 | (217) | 0 | (320) |
After-tax effect of stock-based compensation | $ 580 | $ 344 | $ 1,041 | $ 513 |
Stock-Based Compensation (Det36
Stock-Based Compensation (Detail) - Stock Option Activity $ / shares in Units, $ in Thousands | 6 Months Ended |
Jun. 30, 2016USD ($)$ / sharesshares | |
Number of Options (in shares): | |
Beginning balance (in shares) | shares | 1,191,125 |
Granted (in shares) | shares | 81,000 |
Exercised (in shares) | shares | 0 |
Expired or forfeited (in shares) | shares | (150,375) |
Ending balance (in shares) | shares | 1,121,750 |
Exercisable (in shares) | shares | 1,121,750 |
Weighted-Average Exercise Price (in dollars per share): | |
Beginning balance (in dollars per share) | $ / shares | $ 10.48 |
Granted (in dollars per share) | $ / shares | 1.58 |
Exercised (in dollars per share) | $ / shares | 0 |
Expired or forfeited (in dollars per share) | $ / shares | 15.79 |
Ending balance (in dollars per share) | $ / shares | 9.12 |
Exercisable (in dollars per share) | $ / shares | $ 9.12 |
Outstanding, Weighted Average Remaining Contractual Term (in years) | 4 years 8 months 26 days |
Exercisable, Weighted Average Remaining Contractual Term (in years) | 4 years 8 months 26 days |
Outstanding, Aggregate Intrinsic Value | $ | $ 0 |
Exercisable, Aggregate Intrinsic Value | $ | $ 0 |
Stock-Based Compensation (Det37
Stock-Based Compensation (Detail) - Restricted Stock Unit Activity - Restricted Stock | 6 Months Ended |
Jun. 30, 2016$ / sharesshares | |
Shares (in shares) | |
Beginning balance (in shares) | shares | 1,204,883 |
Granted (in shares) | shares | 845,862 |
Forfeited (in shares) | shares | (132,499) |
Vested (in shares) | shares | (381,916) |
Ending balance (in shares) | shares | 1,536,330 |
Weighted Average Grant Date Fair Value (in Dollars per share) | |
Beginning balance (in dollars per share) | $ / shares | $ 4.21 |
Granted (in dollars per share) | $ / shares | 1.88 |
Forfeited (in dollars per share) | $ / shares | 5.11 |
Vested (in dollars per share) | $ / shares | 4.36 |
Ending balance (in dollars per share) | $ / shares | $ 2.81 |
Debt Financing (Detail)
Debt Financing (Detail) | Jun. 26, 2015CNY (¥) | Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Jul. 31, 2017USD ($) | Jun. 24, 2016CNY (¥) | Jun. 24, 2016USD ($) | May 31, 2016USD ($) | May 09, 2016USD ($) | Dec. 31, 2015USD ($) |
Basis spread on variable rate (as percent) | 3.00% | ||||||||
Annual capital expenditure limit | $ 5,000,000 | ||||||||
Domestic Line of Credit | |||||||||
Letters of credit, amount outstanding | $ 5,012,000 | $ 7,803,000 | |||||||
Line of credit, commitment fee percentage | 0.25% | ||||||||
China Facility | |||||||||
Line of credit, maximum borrowing capacity | ¥ 35,000,000 | ¥ 6,500,000 | $ 979,000 | ||||||
Line of credit, amount outstanding | $ 0 | ||||||||
Interest paid | 0 | $ 30,000 | |||||||
Standby Letters of Credit | |||||||||
Letters of credit, amount outstanding | 103,000 | 57,000 | |||||||
Line of credit, remaining borrowing capacity | 876,000 | $ 5,335,000 | |||||||
Amended Amount | |||||||||
Line of credit, maximum borrowing capacity | 15,000,000 | $ 6,000,000 | $ 7,000,000 | ||||||
Amount Available for Increase Upon Approval of Lender | |||||||||
Line of credit, maximum borrowing capacity | 25,000,000 | ||||||||
Base Rate | China Facility | |||||||||
Basis spread on variable rate (as percent) | 125.00% | ||||||||
Debt Instrument, Redemption, Period One | Revolving Credit Facility | |||||||||
Minimum EBITDA | 500,000 | ||||||||
Debt Instrument, Redemption, Period Two | Revolving Credit Facility | |||||||||
Minimum EBITDA | 1,000,000 | ||||||||
Minimum working capital | $ 35,000 | ||||||||
Scenario, Forecast | Subsequent Event | Amended Amount | |||||||||
Line of credit, maximum borrowing capacity | $ 5,000,000 |
Business Segment and Geograph39
Business Segment and Geographic Financial Data (Detail) | 6 Months Ended |
Jun. 30, 2016segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 3 |
Business Segment and Geograph40
Business Segment and Geographic Financial Data (Detail) - Reporting Segment Net Sales and Gross Margin - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Revenues from external customers | $ 15,175 | $ 18,683 | $ 32,997 | $ 33,786 |
Cost of sales | (9,595) | (11,547) | (21,369) | (19,984) |
Gross margin | 5,580 | 7,136 | 11,628 | 13,802 |
Selling, general and administrative | (6,760) | (8,400) | (14,239) | (16,603) |
Research and development | (1,122) | (982) | (2,280) | (1,854) |
Operating (loss) | (2,302) | (2,246) | (4,891) | (4,655) |
Air Pollution Control Segment | ||||
Revenues from external customers | 10,031 | 11,087 | 23,021 | 17,944 |
Cost of sales | (7,152) | (7,769) | (16,471) | (12,090) |
Gross margin | 2,879 | 3,318 | 6,550 | 5,854 |
Selling, general and administrative | 0 | 0 | 0 | 0 |
Research and development | 0 | 0 | 0 | 0 |
Operating (loss) | 2,879 | 3,318 | 6,550 | 5,854 |
FUEL CHEM Segment | ||||
Revenues from external customers | 5,144 | 7,596 | 9,976 | 15,842 |
Cost of sales | (2,443) | (3,778) | (4,898) | (7,894) |
Gross margin | 2,701 | 3,818 | 5,078 | 7,948 |
Selling, general and administrative | 0 | 0 | 0 | 0 |
Research and development | 0 | 0 | 0 | 0 |
Operating (loss) | 2,701 | 3,818 | 5,078 | 7,948 |
Fuel Conversion Segment | ||||
Selling, general and administrative | 0 | 0 | ||
Research and development | (827) | (629) | (1,514) | (1,101) |
Operating (loss) | (827) | (629) | (1,514) | (1,101) |
Other | ||||
Selling, general and administrative | (6,760) | (8,400) | (14,239) | (16,603) |
Research and development | (295) | (353) | (766) | (753) |
Operating (loss) | $ (7,055) | $ (8,753) | $ (15,005) | $ (17,356) |
Business Segment and Geograph41
Business Segment and Geographic Financial Data (Detail) - Operations by Geographic Area - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Revenues: | ||||
Revenues | $ 15,175 | $ 18,683 | $ 32,997 | $ 33,786 |
United States | ||||
Revenues: | ||||
Revenues | 12,255 | 11,901 | 26,685 | 24,476 |
Foreign | ||||
Revenues: | ||||
Revenues | $ 2,920 | $ 6,782 | $ 6,312 | $ 9,310 |
Business Segment and Geograph42
Business Segment and Geographic Financial Data (Detail) - Assets by Geographic Area - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Assets | ||
Assets | $ 68,698 | $ 76,011 |
United States | ||
Assets | ||
Assets | 46,093 | 47,437 |
Foreign | ||
Assets | ||
Assets | $ 22,605 | $ 28,574 |
Contingencies (Detail) - Warran
Contingencies (Detail) - Warranty Liability - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Change in Warranty Liability | ||
Aggregate product warranty liability at beginning of period | $ 268 | $ 268 |
Net aggregate expense (benefit) related to product warranties | (109) | 8 |
Aggregate reductions for payments | 0 | (8) |
Aggregate product warranty liability at end of period | $ 159 | $ 268 |
Income Taxes (Detail)
Income Taxes (Detail) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Effective tax rate (as a percent) | 2.00% | 37.00% | |
Federal tax rate (as a percent) | 34.00% | 34.00% | |
Unrecognized tax benefits | $ 140 | $ 140 |
Goodwill and Other Intangibles
Goodwill and Other Intangibles (Detail) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016USD ($)reporting_unit | Dec. 31, 2015USD ($) | |
Goodwill | $ 2,116 | $ 2,116 |
FUEL CHEM And APC Technology Segments | ||
Number of reporting units | reporting_unit | 2 | |
Fuel Chem Technology Segment | ||
Goodwill | $ 2,116 |
Fair Value (Detail)
Fair Value (Detail) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Fair Value Disclosures [Abstract] | ||
Marketable securities | $ 7 | $ 19 |