Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2014 | Apr. 24, 2014 | |
Document And Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 31-Mar-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Trading Symbol | 'SLI | ' |
Entity Registrant Name | 'SL INDUSTRIES INC | ' |
Entity Central Index Key | '0000089270 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Common Stock, Shares Outstanding | ' | 4,130,000 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Current assets: | ' | ' |
Cash and cash equivalents | $9,692,000 | $7,163,000 |
Receivables, net | 32,383,000 | 30,765,000 |
Inventories, net | 22,708,000 | 22,963,000 |
Other current assets | 6,017,000 | 7,168,000 |
Deferred income taxes, net | 2,956,000 | 2,804,000 |
Total current assets | 73,756,000 | 70,863,000 |
Property, plant and equipment, net | 10,818,000 | 10,790,000 |
Deferred income taxes, net | 9,261,000 | 10,239,000 |
Goodwill | 17,669,000 | 17,666,000 |
Other intangible assets, net | 2,237,000 | 2,346,000 |
Other assets and deferred charges, net | 1,384,000 | 1,430,000 |
Total assets | 115,125,000 | 113,334,000 |
Current liabilities: | ' | ' |
Short-term borrowings and current portion of long-term debt | 48,000 | 1,048,000 |
Accounts payable | 19,211,000 | 17,112,000 |
Accrued income taxes | ' | 20,000 |
Accrued liabilities: | ' | ' |
Payroll and related costs | 3,781,000 | 5,373,000 |
Other | 14,137,000 | 10,259,000 |
Total current liabilities | 37,177,000 | 33,812,000 |
Long-term debt, less current maturities | 175,000 | 187,000 |
Deferred compensation and supplemental retirement benefits | 1,629,000 | 1,695,000 |
Other long-term liabilities | 14,596,000 | 18,465,000 |
Total liabilities | 53,577,000 | 54,159,000 |
Commitments and contingencies | ' | ' |
SHAREHOLDERS' EQUITY | ' | ' |
Preferred stock, no par value; authorized, 6,000,000 shares; none issued | ' | ' |
Common stock, $.20 par value; authorized, 25,000,000 shares; issued, 6,656,000 and 6,656,000 shares, respectively | 1,331,000 | 1,331,000 |
Capital in excess of par value | 22,204,000 | 22,153,000 |
Retained earnings | 63,047,000 | 60,520,000 |
Accumulated other comprehensive gain, net of tax | 592,000 | 822,000 |
Treasury stock at cost, 2,525,000 and 2,530,000 shares, respectively | -25,626,000 | -25,651,000 |
Total shareholders' equity | 61,548,000 | 59,175,000 |
Total liabilities and shareholders' equity | $115,125,000 | $113,334,000 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Statement Of Financial Position [Abstract] | ' | ' |
Preferred stock, no par value | $0 | $0 |
Preferred stock, shares authorized | 6,000,000 | 6,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value | $0.20 | $0.20 |
Common stock, shares authorized | 25,000,000 | 25,000,000 |
Common stock, shares issued | 6,656,000 | 6,656,000 |
Treasury stock, shares | 2,525,000 | 2,530,000 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Income Statement [Abstract] | ' | ' |
Net sales | $52,585,000 | $49,095,000 |
Cost and expenses: | ' | ' |
Cost of products sold | 35,177,000 | 32,199,000 |
Engineering and product development | 3,298,000 | 3,503,000 |
Selling, general and administrative | 8,624,000 | 8,807,000 |
Depreciation and amortization | 614,000 | 600,000 |
Restructuring charges | 463,000 | ' |
Total cost and expenses | 48,176,000 | 45,109,000 |
Income from operations | 4,409,000 | 3,986,000 |
Other income (expense): | ' | ' |
Amortization of deferred financing costs | -21,000 | -19,000 |
Interest income | 2,000 | 1,000 |
Interest expense | -35,000 | -35,000 |
Other (loss), net | -250,000 | -26,000 |
Income from continuing operations before income taxes | 4,105,000 | 3,907,000 |
Income tax provision | 1,440,000 | 923,000 |
Income from continuing operations | 2,665,000 | 2,984,000 |
(Loss) from discontinued operations, net of tax | -138,000 | -218,000 |
Net income | $2,527,000 | $2,766,000 |
Basic net income (loss) per common share | ' | ' |
Income from continuing operations | $0.64 | $0.72 |
(Loss) from discontinued operations, net of tax | ($0.03) | ($0.05) |
Net income | $0.61 | $0.67 |
Diluted net income (loss) per common share | ' | ' |
Income from continuing operations | $0.64 | $0.71 |
(Loss) from discontinued operations, net of tax | ($0.03) | ($0.05) |
Net income | $0.61 | $0.66 |
Shares used in computing basic net income (loss) per common share | 4,128,000 | 4,139,000 |
Shares used in computing diluted net income (loss) per common share | 4,161,000 | 4,172,000 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Statement Of Income And Comprehensive Income [Abstract] | ' | ' |
Net income | $2,527,000 | $2,766,000 |
Other comprehensive (loss) income, net of tax: | ' | ' |
Foreign currency translation | -34,000 | 76,000 |
Net unrealized loss on available-for-sale securities | -130,000 | ' |
Net gain reclassified into income on sale of available-for-sale securities | -66,000 | ' |
Comprehensive income | $2,297,000 | $2,842,000 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
OPERATING ACTIVITIES: | ' | ' |
Net income | $2,527,000 | $2,766,000 |
Adjustment for losses from discontinued operations | 138,000 | 218,000 |
Income from continuing operations | 2,665,000 | 2,984,000 |
Adjustments to reconcile income from continuing operations to net cash provided by operating activities: | ' | ' |
Depreciation | 456,000 | 453,000 |
Amortization | 158,000 | 147,000 |
Amortization of deferred financing costs | 21,000 | 19,000 |
Stock-based compensation | 109,000 | 122,000 |
Loss on foreign exchange contracts | 363,000 | 26,000 |
(Recoveries of) provisions for losses on accounts receivable | -168,000 | 27,000 |
Deferred compensation and supplemental retirement benefits | 64,000 | 42,000 |
Deferred compensation and supplemental retirement benefit payments | -126,000 | -135,000 |
Deferred income taxes | 826,000 | 62,000 |
(Gain) on sale of available-for-sale securities | -106,000 | ' |
Changes in operating assets and liabilities, excluding effects of business combinations: | ' | ' |
Accounts receivable | -1,438,000 | -552,000 |
Inventories | 236,000 | -927,000 |
Other assets | 817,000 | -464,000 |
Accounts payable | 2,122,000 | -960,000 |
Other accrued liabilities | -1,833,000 | 159,000 |
Accrued income taxes | 82,000 | -30,000 |
Net cash provided by operating activities from continuing operations | 4,248,000 | 973,000 |
Net cash (used in) operating activities from discontinued operations | -362,000 | -348,000 |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 3,886,000 | 625,000 |
INVESTING ACTIVITIES: | ' | ' |
Purchases of property, plant and equipment | -501,000 | -419,000 |
Proceeds from sale of available-for-sale securities | 241,000 | ' |
Purchases of other assets | -26,000 | -15,000 |
NET CASH (USED IN) INVESTING ACTIVITIES | -286,000 | -434,000 |
FINANCING ACTIVITIES: | ' | ' |
Proceeds from Senior Revolving Credit Facility | ' | 3,460,000 |
Payments of Senior Revolving Credit Facility | -1,000,000 | -3,460,000 |
Payments of Capital Leases | -12,000 | ' |
Payments of deferred financing costs | ' | -13,000 |
Treasury stock purchases | -46,000 | ' |
NET CASH (USED IN) FINANCING ACTIVITIES | -1,058,000 | -13,000 |
Effect of exchange rate changes on cash | -13,000 | 17,000 |
NET CHANGE IN CASH AND CASH EQUIVALENTS | 2,529,000 | 195,000 |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 7,163,000 | 3,196,000 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 9,692,000 | 3,391,000 |
Cash paid during the period for: | ' | ' |
Interest | 36,000 | 37,000 |
Income taxes | $950,000 | $757,000 |
Basis_of_Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2014 | |
Accounting Policies [Abstract] | ' |
Basis of Presentation | ' |
1. Basis Of Presentation | |
The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions for Form 10-Q and Article 10 of Regulation S-X promulgated under the Securities Exchange Act of 1934, as amended. Accordingly, they do not include all the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, the accompanying financial statements contain all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation. Operating results for interim periods are not necessarily indicative of the results that may be expected for the year ending December 31, 2014. These financial statements should be read in conjunction with the Company’s audited financial statements and notes thereon included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013. Unless the context requires otherwise, the terms the “Company,” “SL Industries,” “we,” “us” and “our” mean SL Industries, Inc., a Delaware corporation, and its consolidated subsidiaries. |
Receivables
Receivables | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Receivables [Abstract] | ' | ||||||||
Receivables | ' | ||||||||
2. Receivables | |||||||||
Receivables consist of the following: | |||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
(in thousands) | |||||||||
Trade receivables | $ | 32,087 | $ | 30,766 | |||||
Less: allowance for doubtful accounts | (350 | ) | (581 | ) | |||||
Trade receivables, net | 31,737 | 30,185 | |||||||
Recoverable income taxes | 273 | 344 | |||||||
Other | 373 | 236 | |||||||
Receivables, net | $ | 32,383 | $ | 30,765 | |||||
Inventories
Inventories | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Inventories | ' | ||||||||
3. Inventories | |||||||||
Inventories consist of the following: | |||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
(in thousands) | |||||||||
Raw materials | $ | 16,646 | $ | 16,198 | |||||
Work in process | 5,051 | 4,842 | |||||||
Finished goods | 3,597 | 4,124 | |||||||
Gross inventory | 25,294 | 25,164 | |||||||
Less: allowances | (2,586 | ) | (2,201 | ) | |||||
Inventories, net | $ | 22,708 | $ | 22,963 | |||||
Income_Per_Share
Income Per Share | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Earnings Per Share [Abstract] | ' | ||||||||
Income Per Share | ' | ||||||||
4. Income Per Share | |||||||||
The Company has presented net income (loss) per common share pursuant to Accounting Standards Codification (“ASC”) 260 “Earnings Per Share.” Basic net income (loss) per common share is computed by dividing reported net income (loss) available to common shareholders by the weighted-average number of shares outstanding for the period. | |||||||||
Diluted net income (loss) per common share is computed by dividing reported net income (loss) available to common shareholders by the weighted-average shares outstanding for the period, adjusted for the dilutive effect of common stock equivalents, which consist of stock options, using the treasury stock method. | |||||||||
The table below sets forth the computation of basic and diluted net income (loss) per share: | |||||||||
Three Months Ended March 31, | |||||||||
2014 | 2013 | ||||||||
(in thousands, except per share amounts) | |||||||||
Basic net income available to common shareholders: | |||||||||
Net income available to common shareholders from continuing operations | $ | 2,665 | $ | 2,984 | |||||
Diluted net income available to common shareholders from continuing operations | $ | 2,665 | $ | 2,984 | |||||
Shares: | |||||||||
Basic weighted average number of common shares outstanding | 4,128 | 4,139 | |||||||
Common shares assumed upon exercise of stock options | 33 | 33 | |||||||
Diluted weighted average number of common shares outstanding | 4,161 | 4,172 | |||||||
Basic net income (loss) per common share: | |||||||||
Income from continuing operations | $ | 0.64 | $ | 0.72 | |||||
(Loss) from discontinued operations (net of tax) | (0.03 | ) | (0.05 | ) | |||||
Net income | $ | 0.61 | $ | 0.67 | |||||
Diluted net income (loss) per common share: | |||||||||
Income from continuing operations | $ | 0.64 | $ | 0.71 | |||||
(Loss) from discontinued operations (net of tax) | (0.03 | ) | (0.05 | ) | |||||
Net income | $ | 0.61 | $ | 0.66 | |||||
For the three months ended March 31, 2014 and March 31, 2013, 7,000 and 1,000 stock options were excluded from the dilutive computation, respectively, because the option exercise prices were greater than the average market price of the Company’s common stock. |
StockBased_Compensation
Stock-Based Compensation | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ||||||||||||||||
Stock-Based Compensation | ' | ||||||||||||||||
5. Stock-Based Compensation | |||||||||||||||||
At March 31, 2014, the Company had stock-based employee compensation plans as described below. For the three months ended March 31, 2014 and March 31, 2013, the total compensation expense (included in selling, general and administrative expense) related to these plans was $109,000 and $122,000 ($71,000 and $93,000 net of tax), respectively. | |||||||||||||||||
During the first quarter of 2014, the Company implemented a Long-Term Incentive Plan (the “2014 LTIP”) pursuant to the 2008 Incentive Stock Plan (the “2008 Plan”) which awarded restricted stock units (“RSUs”) to eligible executives. Under the terms of the 2014 LTIP, the number of RSUs that may vest, if any, will be based on, among other things, the Company achieving certain sales and return on invested capital (“ROIC”), as defined, targets during the January 2014 to December 2016 performance period. Earned RSUs, if any, cliff vest at the end of fiscal 2016 (100% of earned RSUs vest at December 31, 2016). The final value of these RSUs will be determined by the number of shares earned. The value of these RSUs is charged to compensation expense on a straight-line basis over the three year vesting period with periodic adjustments to account for changes in anticipated award amounts. The weighted-average price for these RSUs was $26.24 per share based on the grant date of March 3, 2014. During the three months ended March 31, 2014, $17,000 was charged to compensation expense. As of March 31, 2014, total unamortized compensation expense for this grant was $381,000. As of March 31, 2014, the maximum number of achievable RSUs under the 2014 LTIP was 22,000 RSUs. | |||||||||||||||||
During the first quarter of 2014, the Company granted 91,000 stock options to two officers of the Company under the 2008 Incentive Stock Plan (the “2008 Plan”). The options issued vest in two equal installments each on the second and third anniversary of the grant date. The options granted are exercisable no later than 5 years after the grant date. Compensation expense is recognized straight-line over the vesting period of the options. | |||||||||||||||||
During the first quarter of 2014, the Company granted 10,000 stock options to a key executive under the 2008 Plan. The options issued vest in three equal installments each on the first, second and third anniversary of the grant date. The options granted are exercisable no later than 10 years after the grant date. Compensation expense is recognized straight-line over the vesting period of the options. | |||||||||||||||||
The Company uses the Black-Scholes option pricing model to value all stock options. Volatility is determined using changes in historical stock prices. The weighted average expected life computation is based on historical exercise patterns and post-vesting termination behavior. The interest rate for periods within the expected life of the award is based on the U.S. Treasury yield curve in effect at the time of grant. | |||||||||||||||||
The fair value of all option grants was estimated using the Black-Scholes option pricing model with the following assumptions and weighted average fair values as follows: | |||||||||||||||||
Three Months Ended | |||||||||||||||||
31-Mar-14 | |||||||||||||||||
Weighted average fair value of grants | $ | 9 | |||||||||||||||
Valuation assumptions: | |||||||||||||||||
Expected dividend yield | 0 | % | |||||||||||||||
Expected volatility | 47.62 | ||||||||||||||||
Expected life (in years) | 3.35 | ||||||||||||||||
Risk-free interest rate | 0.83 | % | |||||||||||||||
No stock options were granted during the three months ended March 31, 2013. | |||||||||||||||||
Stock Options | |||||||||||||||||
Option activity under the principal option plans as of March 31, 2014 and changes during the three months ended March 31, 2014 were as follows: | |||||||||||||||||
Outstanding | Weighted Average | Weighted Average | Aggregate Intrinsic | ||||||||||||||
Options | Exercise Price | Remaining Life | Value | ||||||||||||||
(in thousands) | (in years) | (in thousands) | |||||||||||||||
Outstanding as of December 31, 2013 | 83 | $ | 11.99 | 3.28 | $ | 1,247 | |||||||||||
Granted | 101 | 26.02 | |||||||||||||||
Exercised | — | — | |||||||||||||||
Forfeited | — | — | |||||||||||||||
Expired | — | — | |||||||||||||||
Outstanding as of March 31, 2014 | 184 | $ | 19.71 | 4.35 | $ | 1,066 | |||||||||||
Exercisable as of March 31, 2014 | 83 | $ | 11.99 | 3.04 | $ | 1,058 | |||||||||||
The aggregate intrinsic value in the table above represents the total pretax intrinsic value (the difference between the Company’s closing stock price on the last trading day of the first quarter of fiscal 2014 and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their options on March 31, 2014. This amount changes based on the fair market value of the Company’s stock. During the three months ended March 31, 2014, and March 31, 2013, no options to purchase common stock were exercised by option holders. | |||||||||||||||||
As of March 31, 2014, $885,000 of total unrecognized compensation cost related to stock options is expected to be recognized over a weighted-average period of 2.9 years. | |||||||||||||||||
Tax benefits resulting from tax deductions in excess of the compensation cost recognized for those options are classified as financing cash flows. No options were exercised during the three months ended March 31, 2014 and March 31, 2013. The Company has applied the “Short-cut” method in calculating the historical windfall tax benefits. All tax shortfalls will be applied against this windfall before being charged to earnings. |
Income_Tax
Income Tax | 3 Months Ended |
Mar. 31, 2014 | |
Income Tax Disclosure [Abstract] | ' |
Income Tax | ' |
6. Income Tax | |
The Company calculates its interim tax provision in accordance with the provisions of ASC 740-270 “Income Taxes – Interim Reporting.” For each interim period the Company estimates its annual effective income tax rate and applies the estimated rate to its year-to-date income or loss before income taxes. The Company also computes the tax provision or benefit related to items separately reported, such as discontinued operations, and recognizes the items net of their related tax effect in the interim periods in which they occur. The Company also recognizes the effect of changes in enacted tax laws or rates in the interim periods in which the changes occur. | |
For the three months ended March 31, 2014 and March 31, 2013, the estimated income tax rate from continuing operations was 35% and 24%, respectively. The increase in the effective tax rate was primarily due to the expiration of the federal research and development tax credits in 2014 as compared to the first quarter of 2013. In the first quarter of 2013, the Company recorded a research and development tax benefit for the quarter, plus the retroactive reinstatement of the federal research and development tax credits from the enactment of the American Tax Relief Act of 2012. | |
During the three months ended March 31, 2014, the Company recorded additional benefits from state research and development tax credits of $61,000. During the three months ended March 31, 2013, the Company recorded additional benefits from federal and state research and development tax credits of $300,000 and $33,000, respectively. | |
As of March 31, 2014, the Company’s gross research and development tax credit carryforwards totaled approximately $1,187,000. Of these credits, approximately $469,000 can be carried forward for 15 years and will expire between 2015 and 2029, and approximately $718,000 of state credits can be carried forward indefinitely. | |
The Company has recorded gross unrecognized tax benefits, excluding interest and penalties, as of March 31, 2014 and December 31, 2013 of $834,000. Tax benefits are recorded pursuant to the provisions of ASC 740 “Income Taxes.” If such unrecognized tax benefits are ultimately recorded in any period, the Company’s effective tax rate would be reduced accordingly for such period. | |
The Company has adopted FASB Accounting Standard 2013-11 effective during the first quarter of 2014. The pronouncement requires the Company to offset its uncertain tax positions against certain deferred tax assets in the same jurisdiction. During the first quarter, the Company has reclassified $322,000 of its uncertain tax positions against its related deferred tax assets. | |
The Company has been examined by the Internal Revenue Service (the “IRS”) through the calendar year 2010. State income tax statutes are generally open for periods back to and including the calendar year 2009. | |
It is reasonably possible that the Company’s gross unrecognized tax benefits, including interest, may change within the next twelve months due to the expiration of the statutes of limitation of the federal government and various state governments by a range of zero to $322,000. The Company records such unrecognized tax benefits upon the expiration of the applicable statute of limitations or the settlement with tax authorities. As of March 31, 2014, the Company has a liability for unrecognized benefits of $512,000 and $322,000 for federal and state taxes, respectively. Such benefits relate primarily to expenses incurred in those jurisdictions. | |
The Company classifies interest and penalties related to unrecognized tax benefits as income tax expense. At March 31, 2014, and December 31, 2013, the Company has accrued approximately $112,000 and $100,000 for the payment of interest and penalties, respectively. |
Recently_Adopted_and_Issued_Ac
Recently Adopted and Issued Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2014 | |
Accounting Changes And Error Corrections [Abstract] | ' |
Recently Adopted and Issued Accounting Pronouncements | ' |
7. Recently Adopted and Issued Accounting Pronouncements | |
In March 2013, the FASB issued ASU No. 2013-05, “Foreign Currency Matter (Topic 830): Parent’s Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity a consensus of the FASB Emerging Issues Task Force,” which permits an entity to release cumulative translation adjustments into net income when a reporting entity (parent) ceases to have a controlling financial interest in a subsidiary or group of assets that is a business within a foreign entity. Accordingly, the cumulative translation adjustment should be released into net income only if the sale or transfer results in the complete or substantially complete liquidation of the foreign entity in which the subsidiary or group of assets had resided, or, if a controlling financial interest is no longer held. ASU 2013-05 is effective for fiscal periods beginning after December 15, 2013. The implementation of this guidance did not have a material impact on the Company’s consolidated financial statements. | |
In July 2013, the FASB issued ASU No. 2013-11, “Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists (a consensus of the FASB Emerging Issues Task Force),” which provides guidance on financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. ASU 2013-11 is effective for fiscal periods beginning after December 15, 2013. The implementation of this guidance did not have a material impact on the Company’s consolidated financial statements. | |
In March 2014, the FASB issued ASU No. 2014-06, “Technical Corrections and Improvements Related to Glossary Terms,” which amends the FASB Accounting Standards Codification Master Glossary to clarify the Master Glossary of the Codification, consolidate multiple instances of the same term into a single definition, and makes minor improvements to the Master Glossary. The amendments are not expected to result in substantive changes to the application of existing guidance. ASU 2014-06 is effective upon issuance. The implementation of this guidance did not have a material impact on the Company’s consolidated financial statements. | |
In April 2014, the FASB issued ASU No. 2014-08, “Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of an Entity,” which amends the guidance for reporting discontinued operations and disposals of components of an entity. The amended guidance requires that a disposal representing a strategic shift that has (or will have) a major effect on an entity’s financial results or a business activity classified as held for sale should be reported as discontinued operations. The amendments also expand the disclosure requirements for discontinued operations and add new disclosures for individually significant dispositions that do not qualify as discontinued operations. ASU 2014-08 is effective prospectively for fiscal periods beginning after December 15, 2014 (early adoption is permitted only for disposals that have not been previously reported). The implementation of this guidance is not expected to have a material impact on the Company’s consolidated financial statements. |
Goodwill_and_Intangible_Assets
Goodwill and Intangible Assets | 3 Months Ended | ||||||||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||||||||
Goodwill And Intangible Assets Disclosure [Abstract] | ' | ||||||||||||||||||||||||||
Goodwill and Intangible Assets | ' | ||||||||||||||||||||||||||
8. Goodwill And Intangible Assets | |||||||||||||||||||||||||||
Acquisition in Fiscal 2012 | |||||||||||||||||||||||||||
On February 27, 2012, the Company purchased certain assets of Pro-Dex Astromec, Inc. (“Astromec”), a subsidiary of Pro-Dex Inc. (“Pro-Dex”), for approximately $1,050,000, which includes the assumption of liabilities for an estimated earn-out of $294,000. The total liability for the earn-out as of March 31, 2014 and December 31, 2013 was $85,000 and $116,000, respectively. During the three month periods ended March 31, 2014, and March 31, 2013, $42,000 and $45,000 were paid related to the earn-out, respectively. The results from the acquisition date through March 31, 2014 are included in the SL Montevideo Technology, Inc. (“SL-MTI”) segment. | |||||||||||||||||||||||||||
Goodwill And Intangible Assets | |||||||||||||||||||||||||||
Intangible assets consist of the following: | |||||||||||||||||||||||||||
March 31, 2014 | December 31, 2013 | ||||||||||||||||||||||||||
Amortizable | Gross Value | Accumulated | Net Value | Gross Value | Accumulated | Net Value | |||||||||||||||||||||
Life (years) | Amortization | Amortization | |||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||
Finite-lived intangible assets: | |||||||||||||||||||||||||||
Customer relationships | 5 to 8 | $ | 3,868 | $ | 3,526 | $ | 342 | $ | 3,868 | $ | 3,436 | $ | 432 | ||||||||||||||
Patents | 5 to 20 | 1,302 | 1,212 | 90 | 1,302 | 1,212 | 90 | ||||||||||||||||||||
Developed technology | 5 to 6 | 1,700 | 1,700 | — | 1,700 | 1,700 | — | ||||||||||||||||||||
Licensing fees | 5 to 10 | 550 | 417 | 133 | 550 | 398 | 152 | ||||||||||||||||||||
Total amortized finite-lived intangible assets | 7,420 | 6,855 | 565 | 7,420 | 6,746 | 674 | |||||||||||||||||||||
Indefinite-lived intangible assets: | |||||||||||||||||||||||||||
Trademarks | 1,672 | — | 1,672 | 1,672 | — | 1,672 | |||||||||||||||||||||
Other intangible assets, net | $ | 9,092 | $ | 6,855 | $ | 2,237 | $ | 9,092 | $ | 6,746 | $ | 2,346 | |||||||||||||||
In accordance with ASC 350 “Intangibles – Goodwill and Other,” goodwill and other indefinite-lived intangible assets are not amortized, but are tested for impairment. Such impairment testing is undertaken annually, or more frequently upon the occurrence of some indication that an impairment has taken place. The Company conducted an annual impairment test as of December 31, 2013. | |||||||||||||||||||||||||||
A two-step process is utilized to determine if goodwill has been impaired. In the first step, the fair value of each reporting unit is compared to the net asset value recorded for such unit. If the fair value exceeds the net asset value, the goodwill of the reporting unit is not adjusted. However, if the recorded net asset value exceeds the fair value, the Company performs a second step to measure the amount of impairment loss, if any. In the second step, the implied fair value of the reporting unit’s goodwill is compared with the goodwill recorded for such unit. If the recorded amount of goodwill exceeds the implied fair value, an impairment loss is recognized in the amount of the excess. | |||||||||||||||||||||||||||
Going forward there can be no assurance that economic conditions or other events may not have a negative material impact on the long-term business prospects of any of the Company’s reporting units. In such case, the Company may need to record an impairment loss, as stated above. The next annual impairment test will be conducted as of December 31, 2014, unless management identifies a triggering event in the interim. | |||||||||||||||||||||||||||
Management has not identified any triggering events, as defined by ASC 350, during the three months ended March 31, 2014. Accordingly, no interim impairment test has been performed. | |||||||||||||||||||||||||||
Estimated future amortization expense for intangible assets subject to amortization in each of the next five fiscal years is as follows: | |||||||||||||||||||||||||||
Amortization | |||||||||||||||||||||||||||
Expense | |||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||
2014 | $ | 418 | |||||||||||||||||||||||||
2015 | $ | 79 | |||||||||||||||||||||||||
2016 | $ | 60 | |||||||||||||||||||||||||
2017 | $ | 32 | |||||||||||||||||||||||||
2018 | $ | 26 | |||||||||||||||||||||||||
Total amortization expense, excluding the amortization of deferred financing costs, consists of amortization expense related to intangible assets and software. Amortization expense related to intangible assets for the three months ended March 31, 2014 and March 31, 2013 was $109,000 and $111,000 respectively. Amortization expense related to software for the three months ended March 31, 2014 and March 31, 2013 was $49,000 and $36,000, respectively. | |||||||||||||||||||||||||||
There were no changes in goodwill balances by segment for the three months ended March 31, 2014. | |||||||||||||||||||||||||||
The following table reflects the components of goodwill as of March 31, 2014, and December 31, 2013: | |||||||||||||||||||||||||||
March 31, 2014 | December 31, 2013 | ||||||||||||||||||||||||||
Accumulated | Accumulated | ||||||||||||||||||||||||||
Gross | Impairment | Goodwill, | Gross | Impairment | Goodwill, | ||||||||||||||||||||||
Amount | Losses | Net | Amount | Losses | Net | ||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||
SL Power Electronics Corp. | $ | 4,231 | — | $ | 4,231 | $ | 4,228 | — | $ | 4,228 | |||||||||||||||||
High Power Group: | |||||||||||||||||||||||||||
MTE Corporation | 8,189 | — | 8,189 | 8,189 | — | 8,189 | |||||||||||||||||||||
TEAL Electronics Corp. | 5,055 | 5,055 | — | 5,055 | 5,055 | — | |||||||||||||||||||||
RFL Electronics Inc. | 5,249 | — | 5,249 | 5,249 | — | 5,249 | |||||||||||||||||||||
Goodwill | $ | 22,724 | $ | 5,055 | $ | 17,669 | $ | 22,721 | $ | 5,055 | $ | 17,666 | |||||||||||||||
Investments
Investments | 3 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||||||
Investments Debt And Equity Securities [Abstract] | ' | ||||||||||||||||||||||||
Investments | ' | ||||||||||||||||||||||||
9. Investments | |||||||||||||||||||||||||
Investments in publicly traded equity securities (which include equity interests of less than 20%) are classified as available-for-sale securities. These investments are carried at fair value using quoted market prices and are included in other current assets in the Company’s Consolidated Balance Sheets. Unrealized gains and losses, net of tax, are included in the determination of comprehensive income and reported in shareholders’ equity. | |||||||||||||||||||||||||
Available-for-sale securities consist of the following: | |||||||||||||||||||||||||
March 31, 2014 | December 31, 2013 | ||||||||||||||||||||||||
(in thousands) | (in thousands) | ||||||||||||||||||||||||
Gains in | Gains in | ||||||||||||||||||||||||
Accumulated | Accumulated | ||||||||||||||||||||||||
Other | Other | ||||||||||||||||||||||||
Comprehensive | Estimated | Comprehensive | Estimated | ||||||||||||||||||||||
Cost | Income | Fair Value | Cost | Income | Fair Value | ||||||||||||||||||||
Common stock | $ | 2,226 | $ | 1,429 | $ | 3,655 | $ | 2,362 | $ | 1,739 | $ | 4,101 | |||||||||||||
During the three months ended March 31, 2014, available-for-sale securities were sold for total proceeds of $241,000. The gross realized gains on these sales totaled $106,000 ($66,000 net of tax). For purpose of determining gross realized gains, the cost of securities sold is based on the first in, first out (FIFO) method. Gross unrealized holding gains on available-for-sale securities for the three months ended March 31, 2014 were $205,000 ($130,000 net of tax), and have been included in accumulated other comprehensive income. The Company had no available-for-sale securities during the three months ended March, 31, 2013. |
Debt
Debt | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
Debt | ' | ||||||||
10. Debt | |||||||||
Debt as of March 31, 2014 and December 31, 2013 consisted of the following: | |||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
(in thousands) | |||||||||
2012 Credit Facility: | |||||||||
$40 million variable interest rate senior revolving credit facility maturing in 2016 | $ | — | $ | 1,000 | |||||
Other capital leases with maturities through 2018 | 223 | 235 | |||||||
Total debt | 223 | 1,235 | |||||||
Less current portion | (48 | ) | (1,048 | ) | |||||
Total long-term portion | $ | 175 | $ | 187 | |||||
On August 9, 2012, the Company entered into a Credit Agreement with PNC Bank, National Association, as administrative agent and lender (“PNC Bank”), and the lenders from time to time party thereto, as amended (the “2012 Credit Facility). The 2012 Credit Facility was amended on March 11, 2013 and June 20, 2013. | |||||||||
The 2012 Credit Facility provides for borrowings up to $40,000,000 and under certain conditions maximum borrowings up to $70,000,000. The 2012 Credit Facility includes a sublimit for letters of credit and provides for a separate $10,700,000 letter of credit which expires one year from the date of closing, with annual extensions. The sublimit for letters of credit equals the lesser of (i) an amount equal to $5,000,000 plus the aggregate amount of Designated Usage LC issued and outstanding under the Designated Usage LC sublimit or (ii) $25,000,000. The 2012 Credit Facility expires on August 9, 2016. | |||||||||
Borrowings under the 2012 Credit Facility bear interest, at the Company’s option, at the London interbank offering rate (“LIBOR”) plus a margin rate ranging from 1.25% to 2.0%, or the higher of a Base Rate plus a margin rate ranging from 0.25% to 1.0%. The Base Rate is equal to the highest of (i) the Federal Funds Open Rate plus 0.5% and (ii) the Prime Rate and (iii) the Daily Libor Rate plus 1%. The margin rates are based on certain leverage ratios, as defined. The Company is subject to compliance with certain financial covenants set forth in the 2012 Credit Facility, including, but not limited to, indebtedness to EBITDA, as defined, minimum levels of fixed charges and limitations on capital expenditures, as defined. Availability under the 2012 Credit Facility is based upon the Company’s trailing twelve month EBITDA, as defined. | |||||||||
The Company’s obligations under the 2012 Credit Facility are secured by the grant of security interests in substantially all of its assets. | |||||||||
On May 28, 2013 a letter of credit in the amount of $8,564,000 was issued in favor of the Environmental Protection Agency (“EPA”) to provide financial assurance related to the Company’s environmental payments in accordance with the terms of the Consent Decree reached with the United States Department of Justice (“DOJ”) and EPA related to its liability under the terms of the Consent Decree (see Note 13 for additional information). The letter of credit expires on May 28, 2014, and requires an annual commitment fee of 0.125% and standby commission of 1%, and does not reduce amounts available under the 2012 Credit Facility. | |||||||||
As of March 31, 2014, the Company had no outstanding balance under the 2012 Credit Facility. As of December 31, 2013, the Company had an outstanding balance $1,000,000 under the 2012 Credit Facility. At March 31, 2014, and December 31, 2013, the Company had total availability under the 2012 Credit Facility of $39,526,000 and $38,526,000, respectively. | |||||||||
The aggregate maturities on all long-term debt (including current portion) are: | |||||||||
Capital | |||||||||
Leases | |||||||||
(in thousands) | |||||||||
2014 | $ | 36 | |||||||
2015 | 48 | ||||||||
2016 | 48 | ||||||||
2017 | 48 | ||||||||
2018 | 43 | ||||||||
Total | $ | 223 | |||||||
Accrued_Liabilities_Other
Accrued Liabilities - Other | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Text Block [Abstract] | ' | ||||||||
Accrued Liabilities - Other | ' | ||||||||
11. Accrued Liabilities – Other | |||||||||
Accrued liabilities – other consist of the following: | |||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
(in thousands) | |||||||||
Taxes (other than income) and insurance | $ | 669 | $ | 769 | |||||
Commissions | 619 | 645 | |||||||
Litigation and legal fees | 155 | 121 | |||||||
Other professional fees | 530 | 624 | |||||||
Environmental | 8,028 | 4,589 | |||||||
Warranty | 1,246 | 1,145 | |||||||
Deferred revenue | 222 | 54 | |||||||
Acquisition earn-out, current | 85 | 107 | |||||||
Other | 2,583 | 2,205 | |||||||
Accrued liabilities – other | $ | 14,137 | $ | 10,259 | |||||
Included in the environmental accrual are estimates for all known costs believed to be probable and reasonably estimable for sites that the Company currently operates or operated at one time (see Note 13 for additional information). | |||||||||
A liability is established for estimated future warranty and service claims that relate to current and prior period sales. The Company estimates warranty costs based on historical claim experience and other factors including evaluating specific product warranty issues. | |||||||||
The following is a summary of activity in accrued warranty and service liabilities: | |||||||||
March 31, | |||||||||
2014 | |||||||||
(in thousands) | |||||||||
Liability, beginning of year | $ | 1,145 | |||||||
Expense for new warranties issued | 244 | ||||||||
Warranty claims paid | (143 | ) | |||||||
Liability, end of period | $ | 1,246 | |||||||
Other_LongTerm_Liabilities
Other Long-Term Liabilities | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Other Liabilities Disclosure [Abstract] | ' | ||||||||
Other Long-Term Liabilities | ' | ||||||||
12. Other Long-Term Liabilities | |||||||||
Other long-term liabilities consist of the following: | |||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
(in thousands) | |||||||||
Environmental | $ | 13,622 | $ | 17,200 | |||||
Unrecognized tax benefits, interest and penalties | 624 | 934 | |||||||
Long-term incentive plan | 350 | 322 | |||||||
Acquisition earn-out, long-term | — | 9 | |||||||
Other long-term liabilities | $ | 14,596 | $ | 18,465 | |||||
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2014 | |
Commitments And Contingencies Disclosure [Abstract] | ' |
Commitments and Contingencies | ' |
13. Commitments and Contingencies | |
The Company is involved in certain legal and regulatory actions. Management believes that the ultimate resolution of such matters is unlikely to have a material adverse effect on the Company’s financial condition or results of operations, except as described below. | |
Litigation: The Company has been and is the subject of administrative actions that arise from its ownership of SL Surface Technologies, Inc. (“SurfTech”), a wholly-owned subsidiary, the assets of which were sold in November 2003. SurfTech formerly operated chrome-plating facilities in Pennsauken Township, New Jersey (the “Pennsauken Site”) and Camden, New Jersey (the “Camden Site”). | |
In 2006 the United States Environmental Protection Agency (the “EPA”) named the Company as a potential responsible party (a “PRP”) in connection with the remediation of the Puchack Well Field, which has been designated as a Superfund Site. The EPA is remediating the Puchack Well Field Superfund Site in two separate operable units. The first operable unit (“OU-1”) consists of an area of chromium groundwater contamination in three aquifers that exceeds the selected cleanup standard. The second operable unit (“OU-2”) pertains to sites that are allegedly the sources of contamination for the first operable unit. | |
The Company has reached an agreement with both the United States Department of Justice (“DOJ”) and EPA effective April 30, 2013 related to its liability for both OU-1 and OU-2 and has entered into a Consent Decree which governs the agreement, the terms of which are described below. The Company has agreed to perform the remediation for OU-2. Also, the Company has agreed to pay a fixed sum for the EPA’s past cost for OU-2 and a portion of the EPA’s past cost for OU-1. The payments are to be made in five equal payments of $2,141,000, for a total $10,705,000, plus interest. The Company has also agreed to pay the EPA’s costs for oversight of the OU-2 remediation. The United States District Court judge signed the Consent Decree effective April 30, 2013, thereby triggering the Company’s obligation under the Consent Decree. On May 10, 2013, the Company made the first payment related to its obligation under the Consent Decree in the amount of $2,185,000, which included interest. The next four payments will be made on the anniversary of the first payment plus ten days in the same amount of $2,141,000, plus interest. In 2013, the Company had obtained financial assurances for remediation and fixed payments as required by the terms of the Consent Decree. The financial instruments did not affect the Company’s availability under its Credit facility (see Note 10 Debt). | |
On December 3, 2012, the Company received a demand letter from the State of New Jersey. The demand is for $1,300,000 for past and future cleanup costs and $500,000 for natural resource damages (“NRD”) for a total of $1,800,000 (the “New Jersey Claim”). Although the Company and its counsel believe that it has meritorious defenses to any claim for reimbursement, on February 13, 2013 the Company offered to pay $250,000 to fully resolve the claim presented by the State of New Jersey for past costs, future costs and NRD at the Puchack Well Field Superfund site. The State of New Jersey has not responded to the Company’s s counter-offer. Based on the current available information, the Company has estimated a total combined potential liability for OU-1 and OU-2 and the New Jersey Claim to be $17,477,000 related to its combined liability related to this site. The current estimated cost for the OU-2 remediation liability is based upon the EPA’s plan for the remediation as provided in its Record of Decision for OU-2 and the results of pre-design work by the Company’s environmental consultants. The project is currently in the remedial design phase with the remedial activities to commence in the fall 2014 for expected completion in 2015. The total liability for OU-1 and OU-2 is established by the terms and understandings of the Consent Decree. | |
Other | |
During 2012, the Company conducted an investigation to determine whether certain employees of SL Xianghe Power Electronics Corporation, SL Shanghai Power Electronics Corporation and SL Shanghai International Trading Corporation, three of the Company’s indirect wholly-owned subsidiaries incorporated and operating exclusively in China, may have improperly provided gifts and entertainment to government officials (the “China Investigation”). The Company had retained outside counsel and forensic accountants to assist in the China Investigation. Based upon the China Investigation, the estimated amounts of such gifts and entertainment were not material to the Company’s financial statements. Such estimates did not take into account the costs to the Company of the China Investigation itself, or any other additional costs. | |
The China Investigation included determining whether there were any violations of laws, including the U.S. Foreign Corrupt Practices Act. The Company’s outside counsel contacted the DOJ and the Securities and Exchange Commission (the “SEC”) voluntarily to disclose that the Company conducted an internal investigation, and agreed to cooperate fully. On September 26, 2013, the DOJ notified the Company that it had closed its inquiry into this matter without filing criminal charges. The Company has not received an update from the SEC regarding the status of its inquiry. The Company cannot predict at this time whether any action may be taken by the SEC. | |
In the ordinary course of its business the Company is and may be subject to other loss contingencies pursuant to foreign and domestic federal, state and local governmental laws and regulations and may be party to certain legal actions, frequently involving complaints by terminated employees and disputes with customers, suppliers and others. In the opinion of management, any such other loss contingencies are not expected to have a material adverse effect on the financial condition or results of operations of the Company. | |
Environmental Matters: Loss contingencies include potential obligations to investigate and eliminate or mitigate the effects on the environment of the disposal or release of certain chemical substances at various sites, such as Superfund sites and other facilities, whether or not they are currently in operation. The Company is currently participating in environmental assessments and cleanups at a number of sites and in the future may be involved in additional environmental assessments and cleanups. Based upon investigations completed to date by the Company and its independent engineering-consulting firms, management has provided an estimated accrual for all known costs believed to be probable and costs that can be reasonably estimated in the amount of $21,650,000, of which $13,622,000 is included as other long-term liabilities, with the remainder recorded as other short-term accrued liabilities, as of March 31, 2014. However, it is the nature of environmental contingencies that other circumstances might arise, the costs of which are indeterminable at this time due to such factors as changing government regulations and stricter standards, the unknown magnitude of cleanup costs, and the unknown timing and extent of the remedial actions that may be required. These other circumstances could result in additional expenses or judgments, or offsets thereto. The adverse resolution of any one or more of these other circumstances could have a material adverse effect on the business, operating results, financial condition or cash flows of the Company. The Company’s environmental costs primarily relate to discontinued operations and such costs have been recorded in discontinued operations, net of tax. | |
There are three sites on which the Company may incur material environmental costs in the future as a result of past activities of its former subsidiary, SurfTech. There are two Company owned sites related to its former subsidiary, SurfTech. These sites are located in Pennsauken, New Jersey (the “Pennsauken Site”) and in Camden, New Jersey (the “Camden Site”). There is also a third site, which is not owned by the Company, referred to as the “Puchack Well Field Site.” The Puchack Well Field Site and the Pennsauken Site are part of the Puchack Well Field Superfund Site. | |
With respect to the Camden Site, the Company has reported soil contamination and a groundwater contamination plume emanating from the site. The New Jersey Department of Environmental Protection (“NJDEP”) approved, and the Company implemented in 2010, an interim remedial action pilot study to inject neutralizing chemicals into the unsaturated soil. Based on an assessment of post-injection data, our consultants believe the pilot study can be implemented as a full scale soil remedy to treat unsaturated contaminated soil. A Remedial Action Workplan for soils (“RAWP”) is being developed. The RAWP will select the injection remedy as the site wide remedy for unsaturated soils, along with demolition and proper disposal of the former concrete building slab and targeted excavation and disposal of impacted soil immediately underlying the slab. Additionally, the RAWP will address a small area of impacted soil off the property. The RAWP for soils will be submitted to the NJDEP in the second quarter of 2014, by the Licensed Site Remediation Professional (“LSRP”) for the site. The RAWP is scheduled to be implemented in the fourth quarter of 2014. Also, the Company’s environmental consultants finalized an interim remedial action pilot study to treat on-site contaminated groundwater, consisting of injecting food-grade product, into the groundwater at the down gradient property boundary, to create a “bio-barrier.” The pilot study includes post-injection monitoring to assess the bio-barrier’s ability to treat contaminated groundwater. Implementation of the groundwater pilot study is currently underway with post-injection effectiveness monitoring expected to continue through the third quarter of 2015. | |
As previously reported, the Company is currently participating in environmental assessments and cleanups at a number of sites. One of these sites is a commercial facility, located in Wayne, New Jersey. Contaminated soil and groundwater has undergone remediation with NJDEP oversight, but contaminants of concern (“COCs”) in groundwater and surface water, which extend off-site, still remain above applicable NJDEP remediation standards. A soil remedial action plan will be required in order to remove the new soil source contamination that continues to impact groundwater. Our consultants have reviewed data to determine what supplemental remedial action is necessary for soils, and whether to modify or expand the groundwater remedy that will likely consist of additional in-situ injections of food grade product into the groundwater. Estimates have been developed by the Company’s consultants, which includes costs to enhance the existing vapor intrusion system, remedial injections, soil excavation and additional tests and remedial activities. Costs related to this site are recorded as part of discontinued operations, net of tax. The “Remedial Investigation” deadline for this site has been extended to May 7, 2016. | |
The Company has reported soil and groundwater contamination at the facility of SL-MTI located on its property in Montevideo, Minnesota. An analysis of the contamination has been completed and a remediation plan has been implemented at the site pursuant to the remedial action plan approved by the Minnesota Pollution Control Agency. A soil vapor extraction system has been operating at the site since October 2008. In 2013 the regulatory and screening levels for soil vapor and groundwater were lowered for some of the contaminants at the site. In response to this regulatory change, SL-MTI’s consultants are conducting additional testing to delineate site impacts and update the site conceptual model. Costs related to this site are recorded as a component of continuing operations. | |
As of March 31, 2014 and December 31, 2013, environmental accruals of $21,650,000 and $21,789,000, respectively, have been recorded by the Company in accrued liabilities – other and in other long-term liabilities, as appropriate (see Notes 11 and 12 for additional information). |
Segment_Information
Segment Information | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Segment Reporting [Abstract] | ' | ||||||||
Segment Information | ' | ||||||||
14. Segment Information | |||||||||
The Company currently operates under four business segments: SL Power Electronics Corp. (“SLPE”), the High Power Group, SL-MTI and RFL Electronics Inc. (“RFL”). TEAL Electronics Corp (“TEAL”) and MTE Corporation (“MTE”) are combined into one business segment, which is reported as the High Power Group. The Company aggregates operating business subsidiaries into a single segment for financial reporting purposes if aggregation is consistent with the objectives of ASC 280 “Segment Reporting.” Business units are also combined if they have similar characteristics in each of the following areas: | |||||||||
• | nature of products and services | ||||||||
• | nature of production process | ||||||||
• | type or class of customer | ||||||||
• | methods of distribution | ||||||||
SLPE designs, manufactures and markets high-reliability power conversion products in internal and external footprints. The Company’s power supplies provide a reliable and safe power source for the customer’s specific equipment needs. SLPE, which sells products under three brand names (SL Power Electronics, Condor and Ault), is a major supplier to the original equipment manufacturers (“OEMs”) of medical, industrial/instrumentation, military and information technology equipment. The High Power Group sells products under two brand names (TEAL and MTE). TEAL designs and manufactures custom power conditioning and distribution units for OEMs of medical imaging, medical treatment, military aerospace, semiconductor, solar and advanced simulation systems. MTE designs and manufactures power quality products used to protect equipment from power surges, bring harmonics into compliance and improve the efficiency of variable speed motor drive systems. SL-MTI designs and manufactures high power density precision motors that are used in numerous applications, including military and commercial aerospace, oil and gas, and medical and industrial products. RFL designs and manufactures communication and power protection products/systems that are used to protect electric utility transmission lines and apparatus by isolating faulty transmission lines from a transmission grid. The Unallocated Corporate Expenses segment includes corporate related items, financing activities and other costs not allocated to reportable segments, which includes but is not limited to certain treasury, risk management, legal, litigation and public reporting charges and certain legacy costs. The accounting policies for the business units are the same as those described in the summary of significant accounting policies. For additional information, see Note 1 of the Notes to the Consolidated Financial Statements included in Part IV of the Company’s Annual Report on Form 10-K for the year ended December 31, 2013. | |||||||||
Business segment operations are conducted through domestic subsidiaries. For all periods presented, sales between business segments were not material. Each of the segments has certain major customers, the loss of any of which would have a material adverse effect on such segment. | |||||||||
The unaudited comparative results for the three month periods ended March 31, 2014 and March 31, 2013 are as follows: | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
(in thousands) | |||||||||
Net sales | |||||||||
SLPE | $ | 17,584 | $ | 17,594 | |||||
High Power Group | 20,310 | 17,093 | |||||||
SL-MTI | 10,852 | 9,094 | |||||||
RFL | 3,839 | 5,314 | |||||||
Net sales | $ | 52,585 | $ | 49,095 | |||||
Three Months Ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
(in thousands) | |||||||||
Income from operations | |||||||||
SLPE | $ | 939 | $ | 1,050 | |||||
High Power Group | 2,917 | 2,114 | |||||||
SL-MTI | 2,095 | 1,313 | |||||||
RFL | (39 | ) | 936 | ||||||
Unallocated Corporate Expenses (1) | (1,503 | ) | (1,427 | ) | |||||
Income from operations | $ | 4,409 | $ | 3,986 | |||||
-1 | Unallocated Corporate Expenses includes corporate related items, financing activities and other costs not allocated to reportable segments, which includes but is not limited to certain legal, litigation and public reporting charges and certain legacy costs. | ||||||||
Total assets as of March 31, 2014 and December 31, 2013 are as follows: | |||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
(in thousands) | |||||||||
Total assets | |||||||||
SLPE | $ | 33,387 | $ | 36,835 | |||||
High Power Group | 31,009 | 29,506 | |||||||
SL-MTI | 15,541 | 14,601 | |||||||
RFL | 12,831 | 13,503 | |||||||
Unallocated Corporate Assets | 22,357 | 18,889 | |||||||
Total assets | $ | 115,125 | $ | 113,334 | |||||
Goodwill and other intangible assets, net, as of March 31, 2014 and December 31, 2013 are as follows: | |||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
(in thousands) | |||||||||
Goodwill and other intangible assets, net | |||||||||
SLPE | $ | 4,531 | $ | 4,528 | |||||
High Power Group | 9,894 | 9,976 | |||||||
SL-MTI | 98 | 106 | |||||||
RFL | 5,383 | 5,402 | |||||||
Goodwill and other intangible assets, net | $ | 19,906 | $ | 20,012 | |||||
Retirement_Plans_and_Deferred_
Retirement Plans and Deferred Compensation | 3 Months Ended |
Mar. 31, 2014 | |
Compensation And Retirement Disclosure [Abstract] | ' |
Retirement Plans and Deferred Compensation | ' |
15. Retirement Plans and Deferred Compensation | |
During the three months ended March 31, 2014 and March 31, 2013, the Company maintained a defined contribution pension plan covering all full-time, U.S. employees of SLPE, the High Power Group, including TEAL and MTE, SL-MTI, RFL, and the corporate office. The Company’s contributions to this plan are based on a percentage of employee contributions and/or plan year gross wages, as defined. Costs incurred under these plans amounted to $229,000 during the three months ended March 31, 2014 compared to $187,000 during the three months ended March 31, 2013. | |
The Company has agreements with certain retired directors, officers and key employees providing for supplemental retirement benefits. The liability for supplemental retirement benefits is based on the most recent mortality tables available and discount rates ranging from 6% to 12%. The amount charged to expense in connection with these agreements amounted to $64,000 for the three months ended March 31, 2014 compared to $42,000 for the three months ended March 31, 2013. |
Discontinued_Operations
Discontinued Operations | 3 Months Ended |
Mar. 31, 2014 | |
Discontinued Operations And Disposal Groups [Abstract] | ' |
Discontinued Operations | ' |
16. Discontinued Operations | |
For the three months ended March 31, 2014 and March 31, 2013, total loss from discontinued operations before income taxes was $226,000 and $358,000 ($138,000 and $218,000, net of tax), respectively. The loss from discontinued operations during 2014 and 2013 relates to environmental remediation costs, consulting fees, and legal expenses associated with the past operations of the Company’s five environmental sites (See Note 13 – Commitments and Contingencies for further information concerning the environmental sites). |
Fair_Value_Measurement_and_Fin
Fair Value Measurement and Financial Instruments | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
Fair Value Measurement and Financial Instruments | ' | ||||||||||||||||
17. Fair Value Measurement and Financial Instruments | |||||||||||||||||
ASC 820 defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. ASC 820 applies to reported balances that are required or permitted to be measured at fair value under existing accounting pronouncements; accordingly, the standard does not require any new fair value measurements of reported balances. | |||||||||||||||||
ASC 820 emphasizes that fair value is a market-based measurement, not an entity-specific measurement. Therefore, a fair value measurement should be determined based on the assumptions that market participants would use in pricing the asset or liability. As a basis for considering market participant assumptions in fair value measurements, ASC 820 establishes a fair value hierarchy that distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity (observable inputs that are classified within Levels 1 and 2 of the hierarchy) and the reporting entity’s own assumptions about market participant assumptions (unobservable inputs classified within Level 3 of the hierarchy). | |||||||||||||||||
Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access. Level 2 inputs are inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs may include quoted prices for similar assets and liabilities in active markets, as well as inputs that are observable for the asset or liability (other than quoted prices), such as interest rates, foreign exchange rates, and yield curves that are observable at commonly quoted intervals. Level 3 inputs are unobservable inputs for the asset or liability, which is typically based on an entity’s own assumptions, as there is little, if any, related market activity. In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset or liability. | |||||||||||||||||
Currently, the Company uses foreign currency forward contracts to hedge its foreign currency risk. The valuation of these instruments is determined using widely accepted valuation techniques including discounted cash flow analysis on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including spot rates and market forward points. The fair value of the foreign currency forward contracts is based on interest differentials between the currencies being traded, spot rates and market forward points. | |||||||||||||||||
To comply with the provisions of ASC 820, the Company incorporates credit valuation adjustments to appropriately reflect both its own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. In adjusting the fair value of its derivative contracts for the effect of nonperformance risk, the Company has considered the impact of netting and any applicable credit enhancements, such as collateral postings, thresholds, mutual puts, and guarantees, where applicable. | |||||||||||||||||
Although the Company has determined that the majority of the inputs used to value its derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with its derivatives utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by itself and its counterparties. However, as of March 31, 2014, the Company has assessed the significance of the impact of the credit valuation adjustments on the overall valuation of its derivative positions and has determined that the credit valuation adjustments are not significant to the overall valuation of its derivatives. As a result, the Company has determined that its derivative valuations in their entirety are classified in Level 2 of the fair value hierarchy. | |||||||||||||||||
In conjunction with its implementation of updates to the fair value measurements guidance, the Company made an accounting policy election to measure derivative financial instruments subject to master netting agreements on a net basis. | |||||||||||||||||
During the third quarter of 2013, the Company purchased publicly traded equity securities which are classified as available-for-sale securities. Fair values for these investments are based on closing stock prices from active markets for identical assets and therefore are classified within Level 1 of the fair value hierarchy. The fair value of available-for-sale securities is included in other current assets in the Company’s Consolidated Balance Sheets (see Note 9 for additional information). | |||||||||||||||||
The following table presents the Company’s assets and liabilities measured at fair value on a recurring basis as of March 31, 2014 and December 31, 2013, aggregated by the level in the fair value hierarchy within which those measurements fall: | |||||||||||||||||
Quoted Prices in Active | Significant Other | Significant Unobservable | Balance at | ||||||||||||||
Markets for Identical Assets | Observable | Inputs (Level 3) | March 31, 2014 | ||||||||||||||
and Liabilities (Level 1) | Inputs (Level 2) | ||||||||||||||||
(in thousands) | |||||||||||||||||
Assets | |||||||||||||||||
Available-for-sale securities | $ | 3,655 | $ | — | $ | — | $ | 3,655 | |||||||||
Liabilities | |||||||||||||||||
Derivative financial instruments | $ | — | $ | 211 | $ | — | $ | 211 | |||||||||
Quoted Prices in Active | Significant Other | Significant Unobservable | Balance at | ||||||||||||||
Markets for Identical Assets | Observable | Inputs (Level 3) | December 31, 2013 | ||||||||||||||
and Liabilities (Level 1) | Inputs (Level 2) | ||||||||||||||||
(in thousands) | |||||||||||||||||
Assets | |||||||||||||||||
Available-for-sale securities | $ | 4,101 | $ | — | $ | — | $ | 4,101 | |||||||||
Derivative financial instruments | — | 152 | — | 152 | |||||||||||||
Total Assets | $ | 4,101 | $ | 152 | $ | — | $ | 4,253 | |||||||||
The Company believes that the fair values of its current assets and current liabilities (cash and cash equivalents, receivables, net, short-term borrowings and current portion of long-term debt, accounts payable, and accrued liabilities) and the fair value of its long-term debt, less current maturities, approximate their reported carrying amounts. | |||||||||||||||||
The Company does not have any fair value measurements using significant unobservable inputs (Level 3) as of March 31, 2014. | |||||||||||||||||
As of December 31, 2013, the Company used significant unobservable inputs (Level 3) in connection with the Company’s annual goodwill impairment test. During 2013, goodwill with a carrying amount of $5,055,000 was written down to its implied fair value of zero. This resulted in a $5,055,000 goodwill impairment charge that was recorded in goodwill impairment expense in the High Power Group segment on the Consolidated Statements of Income. The fair value was computed using a combination of a discounted cash flow valuation methodology and comparative market multiples methodology. | |||||||||||||||||
Credit Risk Contingent Features | |||||||||||||||||
The Company has agreements with its derivative counterparties that contain a provision where if the Company defaults or is capable of being declared in default on any of its indebtedness, then the Company could also be declared in default on its derivative obligations. |
Derivative_Instruments_and_Hed
Derivative Instruments and Hedging Activities | 3 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Derivative Instruments And Hedging Activities Disclosure [Abstract] | ' | ||||||||||||
Derivative Instruments and Hedging Activities | ' | ||||||||||||
18. Derivative Instruments and Hedging Activities | |||||||||||||
ASC Topic 815, as amended and interpreted, establishes accounting and reporting standards for derivative instruments, including certain derivative instruments embedded in other contracts, and for hedging activities. As required by ASC Topic 815, the Company records all derivatives on the balance sheet at fair value. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative and the resulting designation. Derivatives used to hedge the exposure to variability in expected future cash flows related to forecasted foreign exchange-based risk are considered economic hedges of the Company’s forecasted cash flows. | |||||||||||||
Risk Management Objective of Using Derivatives | |||||||||||||
The Company is a U.S. dollars (USD) functional currency entity that manufactures products in the USA, Mexico and China. The Company’s sales are priced in USD and its costs and expenses are priced in USD, Mexican pesos (MXN) and Chinese Yuan (CNH). As a result, the Company has exposure to changes in exchange rates between the time when expenses in the non-functional currencies are initially incurred and the time when the expenses are ultimately paid. The Company’s objective in using derivatives is to add stability and to manage its exposure to foreign exchange risks. To accomplish this objective, the Company uses foreign currency forward contracts to manage its exposure to fluctuations in the exchange rates. Foreign currency forward contracts involve fixing the USD-MXN and USD-CNH exchange rates for delivery of a specified amount of foreign currency on a specified date. | |||||||||||||
During 2013 and 2014, the Company entered into a series of foreign currency forward contracts to hedge its exposure to foreign exchange rate movements in its forecasted expenses in China and Mexico. The foreign currency forwards are not speculative and are being used to manage the Company’s exposure to foreign exchange rate movements. Foreign currency forward contracts involve fixing the USD-MXN and USD-CNH exchange rates for delivery of a specified amount of foreign currency on a specified date. The Company has elected not to apply hedge accounting to these derivatives and they are marked to market through earnings. Therefore, gains and losses resulting from changes in the fair value of these contracts are recognized at the end of each reporting period directly in earnings. The losses associated with the foreign currency forward contracts are included in other (loss), net on the Consolidated Statements of Income. As of March 31, 2014, the fair value of the foreign currency forward contracts was recorded as a $211,000 liability in other current liabilities on the Consolidated Balance Sheets. As of December 31, 2013, the fair value of the foreign currency forward contracts was recorded as a $152,000 asset in other current assets on the Consolidated Balance Sheets. | |||||||||||||
Non-designated Hedges of Foreign Exchange Risk | |||||||||||||
The notional amounts are used to measure the volume of foreign currency forward contracts and do not represent exposure to foreign currency losses. The following table summarizes the notional values of the Company’s derivative financial instruments as of March 31, 2014. | |||||||||||||
Product | Number of Instruments | Notional | |||||||||||
(in thousands) | |||||||||||||
Mexican Peso (MXN) Forward Contracts | 20 | MXN 83,081 | |||||||||||
Chinese Yuan (CNH) Forward Contracts | 18 | CNH 91,442 | |||||||||||
The following table details the location in the financial statements of the gain or loss recognized on foreign currency forward contracts that are marked to market for the three months ended March 31, 2014 and March 31, 2013: | |||||||||||||
Three Months Ended | Three Months Ended | ||||||||||||
31-Mar-14 | 31-Mar-13 | ||||||||||||
Derivatives Not Designated as Hedging | Location of (Loss) | Amount of (Loss) | Location of (Loss) | Amount of (Loss) | |||||||||
Instruments | Recognized in Income on | Recognized in Income | Recognized in Income | Recognized in Income | |||||||||
Derivative | on Derivative | on Derivative | on Derivative | ||||||||||
(in thousands) | (in thousands) | ||||||||||||
Foreign Exchange Contracts | Other (loss), net | $ | (363 | ) | Other (loss), net | $ | (26 | ) |
Foreign_Operations
Foreign Operations | 3 Months Ended |
Mar. 31, 2014 | |
Text Block [Abstract] | ' |
Foreign Operations | ' |
19. Foreign Operations | |
As a result of a work stoppage at the Company’s Xianghe manufacturing facilities from March 7, 2013 through March 20, 2013, revenues for the quarter ended March 31, 2013 were adversely impacted by approximately $900,000. The Company realized those sales during the second quarter of 2013. Additionally, certain incremental costs were incurred during the three months ended March 31, 2013 related to the work stoppage, including employee, travel, consulting and legal costs of $734,000. No incremental costs were incurred during the three months ended March 31, 2014. |
Shareholders_Equity
Shareholders' Equity | 3 Months Ended |
Mar. 31, 2014 | |
Equity [Abstract] | ' |
Shareholders' Equity | ' |
20. Shareholders’ Equity | |
On November 16, 2010, the Board of Directors authorized a plan that allows for the repurchase up to an aggregate of 470,000 shares of the Company’s outstanding common stock (the “2010 Repurchase Plan”). Any repurchases pursuant to the 2010 Repurchase Plan would be made in the open market or in negotiated transactions. During the first three months of 2014, the Company purchased approximately 2,000 shares of Company stock at an average price of $24.52 a share. As a result, as of March 31, 2014, approximately 241,000 shares remained available for purchase under the 2010 Repurchase Plan. |
Related_Party_Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2014 | |
Related Party Transactions [Abstract] | ' |
Related Party Transactions | ' |
21. Related Party Transactions | |
On May 1, 2013, the Company entered into a Management Services Agreement (“Management Services Agreement”) with SP Corporate Services LLC (“SP Corporate”). SP Corporate is an affiliate of SPH Group Holdings LLC (“SPHG”). A member of the Company’s Board of Directors, Warren G. Lichtenstein, is affiliated with SPHG. Also, the Company’s Chairman of the Board, Glen M. Kassan is affiliated with SPHG. Pursuant to the Management Services Agreement, SP Corporate agreed to provide, at the direction of the Company’s Chief Executive Officer, non-exclusive services to support the Company’s growth strategy, business development, planning, execution assistance and related support services. The monthly fee for these services is $10,400 paid in advance. The Management Services Agreement has a term of one year and has been approved by the Audit Committee of the Board of Directors and a majority of the disinterested directors of the Company. |
Restructuring_Costs
Restructuring Costs | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Restructuring And Related Activities [Abstract] | ' | ||||||||||||||||
Restructuring Costs | ' | ||||||||||||||||
22. Restructuring Costs | |||||||||||||||||
Restructuring activity for the period ended March 31, 2014 was as follows: | |||||||||||||||||
Accrual at | Charged to | Cash | Accrual at | ||||||||||||||
Beginning of | Earnings | Payments | March 31, 2014 | ||||||||||||||
the Year | |||||||||||||||||
(in thousands) | |||||||||||||||||
2014 Plan | |||||||||||||||||
Severance and otheremployee-related charges | $ | — | $ | 463 | $ | 378 | $ | 85 | |||||||||
No restructuring activity was recognized during 2013. | |||||||||||||||||
2014 Restructuring Plan | |||||||||||||||||
During the first quarter of 2014, the Company announced to its employees a restructuring plan (“2014 Plan”) to align its costs with current and projected sales activity. The costs reductions were primarily production, engineering, selling and administration employees at the High Power Group. As of March 31, 2014, there was a consolidated charge to earnings of $463,000, which was composed of severance and other employee related charges. The total number of employees affected by the restructuring plan was 11, all of which had been terminated as of March 31, 2014. |
Basis_of_Presentation_Policies
Basis of Presentation (Policies) | 3 Months Ended | |||
Mar. 31, 2014 | ||||
Accounting Policies [Abstract] | ' | |||
Basis of Presentation | ' | |||
Basis Of Presentation | ||||
The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions for Form 10-Q and Article 10 of Regulation S-X promulgated under the Securities Exchange Act of 1934, as amended. Accordingly, they do not include all the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, the accompanying financial statements contain all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation. Operating results for interim periods are not necessarily indicative of the results that may be expected for the year ending December 31, 2014. These financial statements should be read in conjunction with the Company’s audited financial statements and notes thereon included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013. Unless the context requires otherwise, the terms the “Company,” “SL Industries,” “we,” “us” and “our” mean SL Industries, Inc., a Delaware corporation, and its consolidated subsidiaries. | ||||
Income Per Share | ' | |||
Income Per Share | ||||
The Company has presented net income (loss) per common share pursuant to Accounting Standards Codification (“ASC”) 260 “Earnings Per Share.” Basic net income (loss) per common share is computed by dividing reported net income (loss) available to common shareholders by the weighted-average number of shares outstanding for the period. | ||||
Diluted net income (loss) per common share is computed by dividing reported net income (loss) available to common shareholders by the weighted-average shares outstanding for the period, adjusted for the dilutive effect of common stock equivalents, which consist of stock options, using the treasury stock method. | ||||
Income Tax | ' | |||
Income Tax | ||||
The Company calculates its interim tax provision in accordance with the provisions of ASC 740-270 “Income Taxes – Interim Reporting.” For each interim period the Company estimates its annual effective income tax rate and applies the estimated rate to its year-to-date income or loss before income taxes. The Company also computes the tax provision or benefit related to items separately reported, such as discontinued operations, and recognizes the items net of their related tax effect in the interim periods in which they occur. The Company also recognizes the effect of changes in enacted tax laws or rates in the interim periods in which the changes occur. | ||||
Recently Adopted and Issued Accounting Pronouncements | ' | |||
Recently Adopted and Issued Accounting Pronouncements | ||||
In March 2013, the FASB issued ASU No. 2013-05, “Foreign Currency Matter (Topic 830): Parent’s Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity a consensus of the FASB Emerging Issues Task Force,” which permits an entity to release cumulative translation adjustments into net income when a reporting entity (parent) ceases to have a controlling financial interest in a subsidiary or group of assets that is a business within a foreign entity. Accordingly, the cumulative translation adjustment should be released into net income only if the sale or transfer results in the complete or substantially complete liquidation of the foreign entity in which the subsidiary or group of assets had resided, or, if a controlling financial interest is no longer held. ASU 2013-05 is effective for fiscal periods beginning after December 15, 2013. The implementation of this guidance did not have a material impact on the Company’s consolidated financial statements. | ||||
In July 2013, the FASB issued ASU No. 2013-11, “Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists (a consensus of the FASB Emerging Issues Task Force),” which provides guidance on financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. ASU 2013-11 is effective for fiscal periods beginning after December 15, 2013. The implementation of this guidance did not have a material impact on the Company’s consolidated financial statements. | ||||
In March 2014, the FASB issued ASU No. 2014-06, “Technical Corrections and Improvements Related to Glossary Terms,” which amends the FASB Accounting Standards Codification Master Glossary to clarify the Master Glossary of the Codification, consolidate multiple instances of the same term into a single definition, and makes minor improvements to the Master Glossary. The amendments are not expected to result in substantive changes to the application of existing guidance. ASU 2014-06 is effective upon issuance. The implementation of this guidance did not have a material impact on the Company’s consolidated financial statements. | ||||
In April 2014, the FASB issued ASU No. 2014-08, “Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of an Entity,” which amends the guidance for reporting discontinued operations and disposals of components of an entity. The amended guidance requires that a disposal representing a strategic shift that has (or will have) a major effect on an entity’s financial results or a business activity classified as held for sale should be reported as discontinued operations. The amendments also expand the disclosure requirements for discontinued operations and add new disclosures for individually significant dispositions that do not qualify as discontinued operations. ASU 2014-08 is effective prospectively for fiscal periods beginning after December 15, 2014 (early adoption is permitted only for disposals that have not been previously reported). The implementation of this guidance is not expected to have a material impact on the Company’s consolidated financial statements. | ||||
Goodwill And Intangible Assets | ' | |||
In accordance with ASC 350 “Intangibles – Goodwill and Other,” goodwill and other indefinite-lived intangible assets are not amortized, but are tested for impairment. Such impairment testing is undertaken annually, or more frequently upon the occurrence of some indication that an impairment has taken place. The Company conducted an annual impairment test as of December 31, 2013. | ||||
A two-step process is utilized to determine if goodwill has been impaired. In the first step, the fair value of each reporting unit is compared to the net asset value recorded for such unit. If the fair value exceeds the net asset value, the goodwill of the reporting unit is not adjusted. However, if the recorded net asset value exceeds the fair value, the Company performs a second step to measure the amount of impairment loss, if any. In the second step, the implied fair value of the reporting unit’s goodwill is compared with the goodwill recorded for such unit. If the recorded amount of goodwill exceeds the implied fair value, an impairment loss is recognized in the amount of the excess. | ||||
Going forward there can be no assurance that economic conditions or other events may not have a negative material impact on the long-term business prospects of any of the Company’s reporting units. In such case, the Company may need to record an impairment loss, as stated above. The next annual impairment test will be conducted as of December 31, 2014, unless management identifies a triggering event in the interim. | ||||
Management has not identified any triggering events, as defined by ASC 350, during the three months ended March 31, 2014. Accordingly, no interim impairment test has been performed. | ||||
Segment Information | ' | |||
Segment Information | ||||
The Company currently operates under four business segments: SL Power Electronics Corp. (“SLPE”), the High Power Group, SL-MTI and RFL Electronics Inc. (“RFL”). TEAL Electronics Corp (“TEAL”) and MTE Corporation (“MTE”) are combined into one business segment, which is reported as the High Power Group. The Company aggregates operating business subsidiaries into a single segment for financial reporting purposes if aggregation is consistent with the objectives of ASC 280 “Segment Reporting.” Business units are also combined if they have similar characteristics in each of the following areas: | ||||
• | nature of products and services | |||
• | nature of production process | |||
• | type or class of customer | |||
• | methods of distribution | |||
Fair Value Measurement and Financial Instruments | ' | |||
Fair Value Measurement and Financial Instruments | ||||
ASC 820 defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. ASC 820 applies to reported balances that are required or permitted to be measured at fair value under existing accounting pronouncements; accordingly, the standard does not require any new fair value measurements of reported balances. | ||||
ASC 820 emphasizes that fair value is a market-based measurement, not an entity-specific measurement. Therefore, a fair value measurement should be determined based on the assumptions that market participants would use in pricing the asset or liability. As a basis for considering market participant assumptions in fair value measurements, ASC 820 establishes a fair value hierarchy that distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity (observable inputs that are classified within Levels 1 and 2 of the hierarchy) and the reporting entity’s own assumptions about market participant assumptions (unobservable inputs classified within Level 3 of the hierarchy). | ||||
Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access. Level 2 inputs are inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs may include quoted prices for similar assets and liabilities in active markets, as well as inputs that are observable for the asset or liability (other than quoted prices), such as interest rates, foreign exchange rates, and yield curves that are observable at commonly quoted intervals. Level 3 inputs are unobservable inputs for the asset or liability, which is typically based on an entity’s own assumptions, as there is little, if any, related market activity. In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset or liability. | ||||
Currently, the Company uses foreign currency forward contracts to hedge its foreign currency risk. The valuation of these instruments is determined using widely accepted valuation techniques including discounted cash flow analysis on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including spot rates and market forward points. The fair value of the foreign currency forward contracts is based on interest differentials between the currencies being traded, spot rates and market forward points. | ||||
To comply with the provisions of ASC 820, the Company incorporates credit valuation adjustments to appropriately reflect both its own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. In adjusting the fair value of its derivative contracts for the effect of nonperformance risk, the Company has considered the impact of netting and any applicable credit enhancements, such as collateral postings, thresholds, mutual puts, and guarantees, where applicable. | ||||
Although the Company has determined that the majority of the inputs used to value its derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with its derivatives utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by itself and its counterparties. However, as of March 31, 2014, the Company has assessed the significance of the impact of the credit valuation adjustments on the overall valuation of its derivative positions and has determined that the credit valuation adjustments are not significant to the overall valuation of its derivatives. As a result, the Company has determined that its derivative valuations in their entirety are classified in Level 2 of the fair value hierarchy. | ||||
In conjunction with its implementation of updates to the fair value measurements guidance, the Company made an accounting policy election to measure derivative financial instruments subject to master netting agreements on a net basis. | ||||
Derivative Instruments and Hedging Activities | ' | |||
Derivative Instruments and Hedging Activities | ||||
ASC Topic 815, as amended and interpreted, establishes accounting and reporting standards for derivative instruments, including certain derivative instruments embedded in other contracts, and for hedging activities. As required by ASC Topic 815, the Company records all derivatives on the balance sheet at fair value. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative and the resulting designation. Derivatives used to hedge the exposure to variability in expected future cash flows related to forecasted foreign exchange-based risk are considered economic hedges of the Company’s forecasted cash flows. |
Receivables_Tables
Receivables (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Receivables [Abstract] | ' | ||||||||
Receivables | ' | ||||||||
Receivables consist of the following: | |||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
(in thousands) | |||||||||
Trade receivables | $ | 32,087 | $ | 30,766 | |||||
Less: allowance for doubtful accounts | (350 | ) | (581 | ) | |||||
Trade receivables, net | 31,737 | 30,185 | |||||||
Recoverable income taxes | 273 | 344 | |||||||
Other | 373 | 236 | |||||||
Receivables, net | $ | 32,383 | $ | 30,765 | |||||
Inventories_Tables
Inventories (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Inventories | ' | ||||||||
Inventories consist of the following: | |||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
(in thousands) | |||||||||
Raw materials | $ | 16,646 | $ | 16,198 | |||||
Work in process | 5,051 | 4,842 | |||||||
Finished goods | 3,597 | 4,124 | |||||||
Gross inventory | 25,294 | 25,164 | |||||||
Less: allowances | (2,586 | ) | (2,201 | ) | |||||
Inventories, net | $ | 22,708 | $ | 22,963 | |||||
Income_Per_Share_Tables
Income Per Share (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Earnings Per Share [Abstract] | ' | ||||||||
Computation of Basic and Diluted Net Income (Loss) Per Share | ' | ||||||||
The table below sets forth the computation of basic and diluted net income (loss) per share: | |||||||||
Three Months Ended March 31, | |||||||||
2014 | 2013 | ||||||||
(in thousands, except per share amounts) | |||||||||
Basic net income available to common shareholders: | |||||||||
Net income available to common shareholders from continuing operations | $ | 2,665 | $ | 2,984 | |||||
Diluted net income available to common shareholders from continuing operations | $ | 2,665 | $ | 2,984 | |||||
Shares: | |||||||||
Basic weighted average number of common shares outstanding | 4,128 | 4,139 | |||||||
Common shares assumed upon exercise of stock options | 33 | 33 | |||||||
Diluted weighted average number of common shares outstanding | 4,161 | 4,172 | |||||||
Basic net income (loss) per common share: | |||||||||
Income from continuing operations | $ | 0.64 | $ | 0.72 | |||||
(Loss) from discontinued operations (net of tax) | (0.03 | ) | (0.05 | ) | |||||
Net income | $ | 0.61 | $ | 0.67 | |||||
Diluted net income (loss) per common share: | |||||||||
Income from continuing operations | $ | 0.64 | $ | 0.71 | |||||
(Loss) from discontinued operations (net of tax) | (0.03 | ) | (0.05 | ) | |||||
Net income | $ | 0.61 | $ | 0.66 | |||||
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ||||||||||||||||
Assumptions and Weighted Average Fair Values | ' | ||||||||||||||||
The fair value of all option grants was estimated using the Black-Scholes option pricing model with the following assumptions and weighted average fair values as follows: | |||||||||||||||||
Three Months Ended | |||||||||||||||||
31-Mar-14 | |||||||||||||||||
Weighted average fair value of grants | $ | 9 | |||||||||||||||
Valuation assumptions: | |||||||||||||||||
Expected dividend yield | 0 | % | |||||||||||||||
Expected volatility | 47.62 | ||||||||||||||||
Expected life (in years) | 3.35 | ||||||||||||||||
Risk-free interest rate | 0.83 | % | |||||||||||||||
Option Activity under Principal Option Plans | ' | ||||||||||||||||
Option activity under the principal option plans as of March 31, 2014 and changes during the three months ended March 31, 2014 were as follows: | |||||||||||||||||
Outstanding | Weighted Average | Weighted Average | Aggregate Intrinsic | ||||||||||||||
Options | Exercise Price | Remaining Life | Value | ||||||||||||||
(in thousands) | (in years) | (in thousands) | |||||||||||||||
Outstanding as of December 31, 2013 | 83 | $ | 11.99 | 3.28 | $ | 1,247 | |||||||||||
Granted | 101 | 26.02 | |||||||||||||||
Exercised | — | — | |||||||||||||||
Forfeited | — | — | |||||||||||||||
Expired | — | — | |||||||||||||||
Outstanding as of March 31, 2014 | 184 | $ | 19.71 | 4.35 | $ | 1,066 | |||||||||||
Exercisable as of March 31, 2014 | 83 | $ | 11.99 | 3.04 | $ | 1,058 | |||||||||||
Goodwill_and_Intangible_Assets1
Goodwill and Intangible Assets (Tables) | 3 Months Ended | ||||||||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||||||||
Goodwill And Intangible Assets Disclosure [Abstract] | ' | ||||||||||||||||||||||||||
Schedule of Intangible Assets | ' | ||||||||||||||||||||||||||
Intangible assets consist of the following: | |||||||||||||||||||||||||||
March 31, 2014 | December 31, 2013 | ||||||||||||||||||||||||||
Amortizable | Gross Value | Accumulated | Net Value | Gross Value | Accumulated | Net Value | |||||||||||||||||||||
Life (years) | Amortization | Amortization | |||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||
Finite-lived intangible assets: | |||||||||||||||||||||||||||
Customer relationships | 5 to 8 | $ | 3,868 | $ | 3,526 | $ | 342 | $ | 3,868 | $ | 3,436 | $ | 432 | ||||||||||||||
Patents | 5 to 20 | 1,302 | 1,212 | 90 | 1,302 | 1,212 | 90 | ||||||||||||||||||||
Developed technology | 5 to 6 | 1,700 | 1,700 | — | 1,700 | 1,700 | — | ||||||||||||||||||||
Licensing fees | 5 to 10 | 550 | 417 | 133 | 550 | 398 | 152 | ||||||||||||||||||||
Total amortized finite-lived intangible assets | 7,420 | 6,855 | 565 | 7,420 | 6,746 | 674 | |||||||||||||||||||||
Indefinite-lived intangible assets: | |||||||||||||||||||||||||||
Trademarks | 1,672 | — | 1,672 | 1,672 | — | 1,672 | |||||||||||||||||||||
Other intangible assets, net | $ | 9,092 | $ | 6,855 | $ | 2,237 | $ | 9,092 | $ | 6,746 | $ | 2,346 | |||||||||||||||
Amortization Expense for Intangible Assets Subject to Amortization | ' | ||||||||||||||||||||||||||
Estimated future amortization expense for intangible assets subject to amortization in each of the next five fiscal years is as follows: | |||||||||||||||||||||||||||
Amortization | |||||||||||||||||||||||||||
Expense | |||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||
2014 | $ | 418 | |||||||||||||||||||||||||
2015 | $ | 79 | |||||||||||||||||||||||||
2016 | $ | 60 | |||||||||||||||||||||||||
2017 | $ | 32 | |||||||||||||||||||||||||
2018 | $ | 26 | |||||||||||||||||||||||||
Components of Goodwill | ' | ||||||||||||||||||||||||||
The following table reflects the components of goodwill as of March 31, 2014, and December 31, 2013: | |||||||||||||||||||||||||||
March 31, 2014 | December 31, 2013 | ||||||||||||||||||||||||||
Accumulated | Accumulated | ||||||||||||||||||||||||||
Gross | Impairment | Goodwill, | Gross | Impairment | Goodwill, | ||||||||||||||||||||||
Amount | Losses | Net | Amount | Losses | Net | ||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||
SL Power Electronics Corp. | $ | 4,231 | — | $ | 4,231 | $ | 4,228 | — | $ | 4,228 | |||||||||||||||||
High Power Group: | |||||||||||||||||||||||||||
MTE Corporation | 8,189 | — | 8,189 | 8,189 | — | 8,189 | |||||||||||||||||||||
TEAL Electronics Corp. | 5,055 | 5,055 | — | 5,055 | 5,055 | — | |||||||||||||||||||||
RFL Electronics Inc. | 5,249 | — | 5,249 | 5,249 | — | 5,249 | |||||||||||||||||||||
Goodwill | $ | 22,724 | $ | 5,055 | $ | 17,669 | $ | 22,721 | $ | 5,055 | $ | 17,666 | |||||||||||||||
Investments_Tables
Investments (Tables) | 3 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||||||
Investments Debt And Equity Securities [Abstract] | ' | ||||||||||||||||||||||||
Schedule of Available-for-Sale Securities | ' | ||||||||||||||||||||||||
Available-for-sale securities consist of the following: | |||||||||||||||||||||||||
March 31, 2014 | December 31, 2013 | ||||||||||||||||||||||||
(in thousands) | (in thousands) | ||||||||||||||||||||||||
Gains in | Gains in | ||||||||||||||||||||||||
Accumulated | Accumulated | ||||||||||||||||||||||||
Other | Other | ||||||||||||||||||||||||
Comprehensive | Estimated | Comprehensive | Estimated | ||||||||||||||||||||||
Cost | Income | Fair Value | Cost | Income | Fair Value | ||||||||||||||||||||
Common stock | $ | 2,226 | $ | 1,429 | $ | 3,655 | $ | 2,362 | $ | 1,739 | $ | 4,101 | |||||||||||||
Debt_Tables
Debt (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
Schedule of Debt | ' | ||||||||
Debt as of March 31, 2014 and December 31, 2013 consisted of the following: | |||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
(in thousands) | |||||||||
2012 Credit Facility: | |||||||||
$40 million variable interest rate senior revolving credit facility maturing in 2016 | $ | — | $ | 1,000 | |||||
Other capital leases with maturities through 2018 | 223 | 235 | |||||||
Total debt | 223 | 1,235 | |||||||
Less current portion | (48 | ) | (1,048 | ) | |||||
Total long-term portion | $ | 175 | $ | 187 | |||||
Summary of Aggregate Maturities on All Long-term Debt | ' | ||||||||
The aggregate maturities on all long-term debt (including current portion) are: | |||||||||
Capital | |||||||||
Leases | |||||||||
(in thousands) | |||||||||
2014 | $ | 36 | |||||||
2015 | 48 | ||||||||
2016 | 48 | ||||||||
2017 | 48 | ||||||||
2018 | 43 | ||||||||
Total | $ | 223 | |||||||
Accrued_Liabilities_Other_Tabl
Accrued Liabilities - Other (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Text Block [Abstract] | ' | ||||||||
Accrued Liabilities - Other | ' | ||||||||
Accrued liabilities – other consist of the following: | |||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
(in thousands) | |||||||||
Taxes (other than income) and insurance | $ | 669 | $ | 769 | |||||
Commissions | 619 | 645 | |||||||
Litigation and legal fees | 155 | 121 | |||||||
Other professional fees | 530 | 624 | |||||||
Environmental | 8,028 | 4,589 | |||||||
Warranty | 1,246 | 1,145 | |||||||
Deferred revenue | 222 | 54 | |||||||
Acquisition earn-out, current | 85 | 107 | |||||||
Other | 2,583 | 2,205 | |||||||
Accrued liabilities – other | $ | 14,137 | $ | 10,259 | |||||
Summary of Activity in Accrued Warranty and Service Liabilities | ' | ||||||||
The following is a summary of activity in accrued warranty and service liabilities: | |||||||||
March 31, | |||||||||
2014 | |||||||||
(in thousands) | |||||||||
Liability, beginning of year | $ | 1,145 | |||||||
Expense for new warranties issued | 244 | ||||||||
Warranty claims paid | (143 | ) | |||||||
Liability, end of period | $ | 1,246 | |||||||
Other_LongTerm_Liabilities_Tab
Other Long-Term Liabilities (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Other Liabilities Disclosure [Abstract] | ' | ||||||||
Other Long-Term Liabilities | ' | ||||||||
Other long-term liabilities consist of the following: | |||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
(in thousands) | |||||||||
Environmental | $ | 13,622 | $ | 17,200 | |||||
Unrecognized tax benefits, interest and penalties | 624 | 934 | |||||||
Long-term incentive plan | 350 | 322 | |||||||
Acquisition earn-out, long-term | — | 9 | |||||||
Other long-term liabilities | $ | 14,596 | $ | 18,465 | |||||
Segment_Information_Tables
Segment Information (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Segment Reporting [Abstract] | ' | ||||||||
Comparative Results of Segment Information | ' | ||||||||
The unaudited comparative results for the three month periods ended March 31, 2014 and March 31, 2013 are as follows: | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
(in thousands) | |||||||||
Net sales | |||||||||
SLPE | $ | 17,584 | $ | 17,594 | |||||
High Power Group | 20,310 | 17,093 | |||||||
SL-MTI | 10,852 | 9,094 | |||||||
RFL | 3,839 | 5,314 | |||||||
Net sales | $ | 52,585 | $ | 49,095 | |||||
Three Months Ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
(in thousands) | |||||||||
Income from operations | |||||||||
SLPE | $ | 939 | $ | 1,050 | |||||
High Power Group | 2,917 | 2,114 | |||||||
SL-MTI | 2,095 | 1,313 | |||||||
RFL | (39 | ) | 936 | ||||||
Unallocated Corporate Expenses (1) | (1,503 | ) | (1,427 | ) | |||||
Income from operations | $ | 4,409 | $ | 3,986 | |||||
-1 | Unallocated Corporate Expenses includes corporate related items, financing activities and other costs not allocated to reportable segments, which includes but is not limited to certain legal, litigation and public reporting charges and certain legacy costs. | ||||||||
Total Assets by Segment | ' | ||||||||
Total assets as of March 31, 2014 and December 31, 2013 are as follows: | |||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
(in thousands) | |||||||||
Total assets | |||||||||
SLPE | $ | 33,387 | $ | 36,835 | |||||
High Power Group | 31,009 | 29,506 | |||||||
SL-MTI | 15,541 | 14,601 | |||||||
RFL | 12,831 | 13,503 | |||||||
Unallocated Corporate Assets | 22,357 | 18,889 | |||||||
Total assets | $ | 115,125 | $ | 113,334 | |||||
Goodwill and Other Intangible Assets, Net by Segment | ' | ||||||||
Goodwill and other intangible assets, net, as of March 31, 2014 and December 31, 2013 are as follows: | |||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
(in thousands) | |||||||||
Goodwill and other intangible assets, net | |||||||||
SLPE | $ | 4,531 | $ | 4,528 | |||||
High Power Group | 9,894 | 9,976 | |||||||
SL-MTI | 98 | 106 | |||||||
RFL | 5,383 | 5,402 | |||||||
Goodwill and other intangible assets, net | $ | 19,906 | $ | 20,012 | |||||
Fair_Value_Measurement_and_Fin1
Fair Value Measurement and Financial Instruments (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
Assets and Liabilities Measured at Fair Value on Recurring Basis | ' | ||||||||||||||||
The following table presents the Company’s assets and liabilities measured at fair value on a recurring basis as of March 31, 2014 and December 31, 2013, aggregated by the level in the fair value hierarchy within which those measurements fall: | |||||||||||||||||
Quoted Prices in Active | Significant Other | Significant Unobservable | Balance at | ||||||||||||||
Markets for Identical Assets | Observable | Inputs (Level 3) | March 31, 2014 | ||||||||||||||
and Liabilities (Level 1) | Inputs (Level 2) | ||||||||||||||||
(in thousands) | |||||||||||||||||
Assets | |||||||||||||||||
Available-for-sale securities | $ | 3,655 | $ | — | $ | — | $ | 3,655 | |||||||||
Liabilities | |||||||||||||||||
Derivative financial instruments | $ | — | $ | 211 | $ | — | $ | 211 | |||||||||
Quoted Prices in Active | Significant Other | Significant Unobservable | Balance at | ||||||||||||||
Markets for Identical Assets | Observable | Inputs (Level 3) | December 31, 2013 | ||||||||||||||
and Liabilities (Level 1) | Inputs (Level 2) | ||||||||||||||||
(in thousands) | |||||||||||||||||
Assets | |||||||||||||||||
Available-for-sale securities | $ | 4,101 | $ | — | $ | — | $ | 4,101 | |||||||||
Derivative financial instruments | — | 152 | — | 152 | |||||||||||||
Total Assets | $ | 4,101 | $ | 152 | $ | — | $ | 4,253 | |||||||||
Derivative_Instruments_and_Hed1
Derivative Instruments and Hedging Activities (Tables) | 3 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Derivative Instruments And Hedging Activities Disclosure [Abstract] | ' | ||||||||||||
Notional Values of Company's Derivative Financial Instruments | ' | ||||||||||||
The notional amounts are used to measure the volume of foreign currency forward contracts and do not represent exposure to foreign currency losses. The following table summarizes the notional values of the Company’s derivative financial instruments as of March 31, 2014. | |||||||||||||
Product | Number of Instruments | Notional | |||||||||||
(in thousands) | |||||||||||||
Mexican Peso (MXN) Forward Contracts | 20 | MXN 83,081 | |||||||||||
Chinese Yuan (CNH) Forward Contracts | 18 | CNH 91,442 | |||||||||||
Gain or Loss Recognized on Foreign Currency Forward Contracts | ' | ||||||||||||
The following table details the location in the financial statements of the gain or loss recognized on foreign currency forward contracts that are marked to market for the three months ended March 31, 2014 and March 31, 2013: | |||||||||||||
Three Months Ended | Three Months Ended | ||||||||||||
31-Mar-14 | 31-Mar-13 | ||||||||||||
Derivatives Not Designated as Hedging | Location of (Loss) | Amount of (Loss) | Location of (Loss) | Amount of (Loss) | |||||||||
Instruments | Recognized in Income on | Recognized in Income | Recognized in Income | Recognized in Income | |||||||||
Derivative | on Derivative | on Derivative | on Derivative | ||||||||||
(in thousands) | (in thousands) | ||||||||||||
Foreign Exchange Contracts | Other (loss), net | $ | (363 | ) | Other (loss), net | $ | (26 | ) |
Restructuring_Costs_Tables
Restructuring Costs (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Restructuring And Related Activities [Abstract] | ' | ||||||||||||||||
Schedule of Restructuring Costs | ' | ||||||||||||||||
Restructuring activity for the period ended March 31, 2014 was as follows: | |||||||||||||||||
Accrual at | Charged to | Cash | Accrual at | ||||||||||||||
Beginning of | Earnings | Payments | March 31, 2014 | ||||||||||||||
the Year | |||||||||||||||||
(in thousands) | |||||||||||||||||
2014 Plan | |||||||||||||||||
Severance and otheremployee-related charges | $ | — | $ | 463 | $ | 378 | $ | 85 | |||||||||
Receivables_Receivables_Detail
Receivables - Receivables (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Receivables [Abstract] | ' | ' |
Trade receivables | $32,087,000 | $30,766,000 |
Less: allowance for doubtful accounts | -350,000 | -581,000 |
Trade receivables, net | 31,737,000 | 30,185,000 |
Recoverable income taxes | 273,000 | 344,000 |
Other | 373,000 | 236,000 |
Receivables, net | $32,383,000 | $30,765,000 |
Inventories_Inventories_Detail
Inventories - Inventories (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Inventory Disclosure [Abstract] | ' | ' |
Raw materials | $16,646,000 | $16,198,000 |
Work in process | 5,051,000 | 4,842,000 |
Finished goods | 3,597,000 | 4,124,000 |
Gross inventory | 25,294,000 | 25,164,000 |
Less: allowances | -2,586,000 | -2,201,000 |
Inventories, net | $22,708,000 | $22,963,000 |
Income_Per_Share_Computation_o
Income Per Share - Computation of Basic and Diluted Net Income (Loss) Per Share (Detail) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Basic net income available to common shareholders: | ' | ' |
Net income available to common shareholders from continuing operations | $2,665,000 | $2,984,000 |
Diluted net income available to common shareholders from continuing operations | $2,665,000 | $2,984,000 |
Shares: | ' | ' |
Basic weighted average number of common shares outstanding | 4,128,000 | 4,139,000 |
Common shares assumed upon exercise of stock options | 33,000 | 33,000 |
Diluted weighted average number of common shares outstanding | 4,161,000 | 4,172,000 |
Basic net income (loss) per common share: | ' | ' |
Income from continuing operations | $0.64 | $0.72 |
(Loss) from discontinued operations (net of tax) | ($0.03) | ($0.05) |
Net income | $0.61 | $0.67 |
Diluted net income (loss) per common share: | ' | ' |
Income from continuing operations | $0.64 | $0.71 |
(Loss) from discontinued operations (net of tax) | ($0.03) | ($0.05) |
Net income | $0.61 | $0.66 |
Income_Per_Share_Additional_In
Income Per Share - Additional Information (Detail) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Earnings Per Share [Abstract] | ' | ' |
Anti-dilutive common share equivalents | 7,000 | 1,000 |
StockBased_Compensation_Additi
Stock-Based Compensation - Additional Information (Detail) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Stock-based compensation | $109,000 | $122,000 |
Stock-based compensation cost, net of tax | 71,000 | 93,000 |
Stock options granted | 101,000 | 0 |
Option exercised | ' | ' |
Total unrecognized compensation cost related to stock options | 885,000 | ' |
Weighted-average period of total unrecognized compensation cost related to stock options | '2 years 10 months 24 days | ' |
2014 Long Term Incentive Plan [Member] | Restricted Stock Units (RSUs) [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Stock-based compensation | 17,000 | ' |
Share based award vesting period | '3 years | ' |
Grant date | 3-Mar-14 | ' |
Weighted-average price of restricted stock | $26.24 | ' |
Maximum number of achievable RSUs | 22,000 | ' |
Total unrecognized compensation cost related to restricted stock units | $381,000 | ' |
Incentive Stock Plan (2008 Plan) [Member] | Executive Officers [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Share based award vesting period | '3 years | ' |
Stock options granted | 91,000 | ' |
Number of officers entitled for granting of stock options | 2 | ' |
Options granted contractual term | '5 years | ' |
Incentive Stock Plan (2008 Plan) [Member] | Key Executive [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Share based award vesting period | '3 years | ' |
Stock options granted | 10,000 | ' |
Options granted contractual term | '10 years | ' |
StockBased_Compensation_Assump
Stock-Based Compensation - Assumptions and Weighted Average Fair Values (Detail) (USD $) | 3 Months Ended |
Mar. 31, 2014 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' |
Weighted average fair value of grants | $9 |
Valuation assumptions: | ' |
Expected dividend yield | 0.00% |
Expected volatility | 47.62% |
Expected life (in years) | '3 years 4 months 6 days |
Risk-free interest rate | 0.83% |
StockBased_Compensation_Option
Stock-Based Compensation - Option Activity under Principal Option Plans (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ' | ' |
Shares, Beginning Balance | 83,000 | ' | ' |
Shares, Granted | 101,000 | 0 | ' |
Shares, Exercised | ' | ' | ' |
Shares, Forfeited | ' | ' | ' |
Shares, Expired | ' | ' | ' |
Shares, Ending Balance | 184,000 | ' | 83,000 |
Shares, Exercisable | 83,000 | ' | ' |
Weighted-Average Exercise Price, Beginning Balance | $11.99 | ' | ' |
Weighted-Average Exercise Price, Granted | $26.02 | ' | ' |
Weighted-Average Exercise Price, Exercised | ' | ' | ' |
Weighted-Average Exercise Price, Forfeited | ' | ' | ' |
Weighted-Average Exercise Price, Expired | ' | ' | ' |
Weighted-Average Exercise Price, Ending Balance | $19.71 | ' | $11.99 |
Weighted-Average Exercise Price, Exercisable | $11.99 | ' | ' |
Weighted-Average Remaining Contractual Term, Outstanding | '4 years 4 months 6 days | ' | '3 years 3 months 11 days |
Weighted-Average Remaining Contractual Term, Exercisable | '3 years 15 days | ' | ' |
Aggregate Intrinsic Value, Beginning Balance | $1,247 | ' | ' |
Aggregate Intrinsic Value, Ending Balance | 1,066 | ' | 1,247 |
Aggregate Intrinsic Value, Exercisable | $1,058 | ' | ' |
Income_Tax_Additional_Informat
Income Tax - Additional Information (Detail) (USD $) | 3 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | |
Income Taxes [Line Items] | ' | ' | ' |
Effective income tax rate from continuing operations | 35.00% | 24.00% | ' |
Additional benefits from state research and development | $61,000 | $33,000 | ' |
Additional benefits from federal research and development | ' | 300,000 | ' |
Company's gross research and development tax credit carry forwards | 1,187,000 | ' | ' |
Gross research and development tax credit indefinite carry forward | 718,000 | ' | ' |
Gross unrecognized tax benefits, excluding interest and penalties | 834,000 | ' | 834,000 |
Uncertain tax positions reclassified against related deferred tax assets | 322,000 | ' | ' |
Examination by IRS | 'The Company has been examined by the Internal Revenue Service (the "IRS") through the calendar year 2010. State income tax statutes are generally open for periods back to and including the calendar year 2009 | ' | ' |
Gross unrecognized tax benefits balance, Minimum | 0 | ' | ' |
Gross unrecognized tax benefits balance, Maximum | 322,000 | ' | ' |
Liability for interest and penalties related to unrecognized tax benefits | 112,000 | ' | 100,000 |
Federal Tax [Member] | ' | ' | ' |
Income Taxes [Line Items] | ' | ' | ' |
Gross unrecognized tax benefits, excluding interest and penalties | 512,000 | ' | ' |
State Tax [Member] | ' | ' | ' |
Income Taxes [Line Items] | ' | ' | ' |
Gross unrecognized tax benefits, excluding interest and penalties | 322,000 | ' | ' |
Research Definite Carry Forward [Member] | ' | ' | ' |
Income Taxes [Line Items] | ' | ' | ' |
Company's research and development tax credit carry forwards | $469,000 | ' | ' |
Period of company's gross research and development tax credit carry forward | '15 years | ' | ' |
Expiration of company's gross research and development tax credit carry forward, Minimum | '2015 | ' | ' |
Expiration of company's gross research and development tax credit carry forward, Maximum | '2029 | ' | ' |
Goodwill_and_Intangible_Assets2
Goodwill and Intangible Assets - Additional Information (Detail) (USD $) | 3 Months Ended | |||
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | Feb. 27, 2012 | |
Goodwill And Intangible Assets Disclosure [Abstract] | ' | ' | ' | ' |
Purchase price for assets purchased | ' | ' | ' | $1,050,000 |
Amount of earn-out liabilities | ' | ' | ' | 294,000 |
Earn-out liability | 85,000 | ' | 116,000 | ' |
Payments related to earn-out | 42,000 | 45,000 | ' | ' |
Amortization expense for intangible assets | 109,000 | 111,000 | ' | ' |
Amortization expense for software | $49,000 | $36,000 | ' | ' |
Goodwill_and_Intangible_Assets3
Goodwill and Intangible Assets - Schedule of Intangible Assets (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 |
Customer Relationships [Member] | Customer Relationships [Member] | Customer Relationships [Member] | Customer Relationships [Member] | Patents [Member] | Patents [Member] | Patents [Member] | Patents [Member] | Developed Technology [Member] | Developed Technology [Member] | Developed Technology [Member] | Developed Technology [Member] | Licensing Fees [Member] | Licensing Fees [Member] | Licensing Fees [Member] | Licensing Fees [Member] | Trademarks [Member] | Trademarks [Member] | |||
Minimum [Member] | Maximum [Member] | Minimum [Member] | Maximum [Member] | Minimum [Member] | Maximum [Member] | Minimum [Member] | Maximum [Member] | |||||||||||||
Other Intangibles [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Finite-lived intangible assets, Gross Value | $7,420,000 | $7,420,000 | $3,868,000 | $3,868,000 | ' | ' | $1,302,000 | $1,302,000 | ' | ' | $1,700,000 | $1,700,000 | ' | ' | $550,000 | $550,000 | ' | ' | ' | ' |
Other intangible assets, Gross | 9,092,000 | 9,092,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Finite-lived intangible assets, Accumulated Amortization | 6,855,000 | 6,746,000 | 3,526,000 | 3,436,000 | ' | ' | 1,212,000 | 1,212,000 | ' | ' | 1,700,000 | 1,700,000 | ' | ' | 417,000 | 398,000 | ' | ' | ' | ' |
Finite-lived intangible assets, Net Value | 565,000 | 674,000 | 342,000 | 432,000 | ' | ' | 90,000 | 90,000 | ' | ' | ' | ' | ' | ' | 133,000 | 152,000 | ' | ' | ' | ' |
Indefinite-lived intangible assets, Net Value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,672,000 | 1,672,000 |
Other intangible assets, net | $2,237,000 | $2,346,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amortizable Life (Years) | ' | ' | ' | ' | '5 years | '8 years | ' | ' | '5 years | '20 years | ' | ' | '5 years | '6 years | ' | ' | '5 years | '10 years | ' | ' |
Goodwill_and_Intangible_Assets4
Goodwill and Intangible Assets - Amortization Expense for Intangible Assets Subject to Amortization (Detail) (USD $) | Mar. 31, 2014 |
In Thousands, unless otherwise specified | |
Goodwill And Intangible Assets Disclosure [Abstract] | ' |
2014 | $418 |
2015 | 79 |
2016 | 60 |
2017 | 32 |
2018 | $26 |
Goodwill_and_Intangible_Assets5
Goodwill and Intangible Assets - Components of Goodwill (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Goodwill [Line Items] | ' | ' |
Goodwill, Gross Amount | $22,724,000 | $22,721,000 |
Goodwill, Accumulated Impairment Losses | 5,055,000 | 5,055,000 |
Goodwill, Net | 17,669,000 | 17,666,000 |
SLPE [Member] | ' | ' |
Goodwill [Line Items] | ' | ' |
Goodwill, Gross Amount | 4,231,000 | 4,228,000 |
Goodwill, Accumulated Impairment Losses | ' | ' |
Goodwill, Net | 4,231,000 | 4,228,000 |
High Power Group [Member] | MTE Corporation [Member] | ' | ' |
Goodwill [Line Items] | ' | ' |
Goodwill, Gross Amount | 8,189,000 | 8,189,000 |
Goodwill, Accumulated Impairment Losses | ' | ' |
Goodwill, Net | 8,189,000 | 8,189,000 |
High Power Group [Member] | TEAL Electronics Corp. [Member] | ' | ' |
Goodwill [Line Items] | ' | ' |
Goodwill, Gross Amount | 5,055,000 | 5,055,000 |
Goodwill, Accumulated Impairment Losses | 5,055,000 | 5,055,000 |
Goodwill, Net | ' | ' |
RFL [Member] | ' | ' |
Goodwill [Line Items] | ' | ' |
Goodwill, Gross Amount | 5,249,000 | 5,249,000 |
Goodwill, Accumulated Impairment Losses | ' | ' |
Goodwill, Net | $5,249,000 | $5,249,000 |
Investments_Additional_Informa
Investments - Additional Information (Detail) (USD $) | 3 Months Ended | ||
Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2013 | |
Investment [Line Items] | ' | ' | ' |
Proceeds from sale of available-for-sale securities | $241,000 | ' | ' |
Gross realized gains on available-for-sale securities | 106,000 | ' | ' |
Net realized gains on available-for-sale securities | 66,000 | ' | ' |
Gross unrealized holding gains on available-for-sale securities | 205,000 | ' | ' |
Net unrealized holding gains on available-for-sale securities | 130,000 | ' | ' |
Available-for-sale securities | $3,655,000 | $4,101,000 | $0 |
Maximum [Member] | ' | ' | ' |
Investment [Line Items] | ' | ' | ' |
Percentage of equity interests on investments in publicly traded equity securities | 20.00% | ' | ' |
Investments_Schedule_of_Availa
Investments - Schedule of Available-for-Sale Securities (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2013 |
In Thousands, unless otherwise specified | |||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' |
Estimated Fair Value | $3,655 | $4,101 | $0 |
Common Stock [Member] | ' | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' |
Cost | 2,226 | 2,362 | ' |
Gains in Accumulated Other Comprehensive Income | 1,429 | 1,739 | ' |
Estimated Fair Value | $3,655 | $4,101 | ' |
Debt_Schedule_of_Debt_Detail
Debt - Schedule of Debt (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Schedule of Debt | ' | ' |
$40 million variable interest rate senior revolving credit facility maturing in 2016 | ' | $1,000,000 |
Other capital leases with maturities through 2018 | 223,000 | 235,000 |
Total debt | 223,000 | 1,235,000 |
Less current portion | -48,000 | -1,048,000 |
Total long-term portion | $175,000 | $187,000 |
Debt_Schedule_of_Debt_Parenthe
Debt - Schedule of Debt (Parenthetical) (Detail) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2014 |
Debt Disclosure [Abstract] | ' |
Revolving credit facility, borrowing capacity | $40 |
Revolving credit facility, maturity date | 9-Aug-16 |
Other capital leases, maturity period | '2018 |
Debt_Additional_Information_De
Debt - Additional Information (Detail) (USD $) | 3 Months Ended | 3 Months Ended | 3 Months Ended | ||||||||||||
Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Aug. 09, 2012 | Aug. 09, 2012 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Aug. 09, 2012 | |
2012 Credit Facility [Member] | 2012 Credit Facility [Member] | 2012 Credit Facility [Member] | 2012 Credit Facility [Member] | 2012 Credit Facility [Member] | 2012 Credit Facility [Member] | Minimum [Member] | Minimum [Member] | Maximum [Member] | Maximum [Member] | Maximum [Member] | Maximum [Member] | Maximum [Member] | |||
Standby Letters of Credit Due May 28, 2014 [Member] | PNC Bank, National Association (PNC Bank) [Member] | PNC Bank, National Association (PNC Bank) [Member] | PNC Bank, National Association (PNC Bank) [Member] | London Interbank Offered Rate (LIBOR) [Member] | Base Rate [Member] | London Interbank Offered Rate (LIBOR) [Member] | Base Rate [Member] | Federal Funds Open Rate [Member] | Daily Libor Rate [Member] | 2012 Credit Facility [Member] | |||||
Letter of Credit [Member] | PNC Bank, National Association (PNC Bank) [Member] | ||||||||||||||
Line of Credit Facility [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum borrowings | $40,000,000 | ' | ' | ' | ' | ' | $40,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum borrowings under certain conditions | ' | ' | ' | ' | ' | ' | 70,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Standby and commercial letter of credit sublimit | ' | ' | ' | ' | ' | ' | 5,000,000 | 10,700,000 | ' | ' | ' | ' | ' | ' | 25,000,000 |
Maturity date of expiration | 9-Aug-16 | ' | ' | ' | 28-May-14 | 9-Aug-16 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Letter of credit, expiration period from the date of closing | ' | ' | ' | ' | ' | '1 year | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Margin rate range | ' | ' | ' | ' | ' | ' | ' | ' | 1.25% | 0.25% | 2.00% | 1.00% | 0.50% | 1.00% | ' |
Balance of letter of credit under Credit Facility | ' | ' | ' | ' | 8,564,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Annual commitment fee | ' | ' | ' | ' | 0.13% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Standby commission | ' | ' | ' | ' | 1.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Credit availability under Credit Facility | ' | ' | 39,526,000 | 38,526,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance under the Credit Facility | ' | $1,000,000 | $0 | $1,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt_Summary_of_Aggregate_Matu
Debt - Summary of Aggregate Maturities on All Long-term Debt (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Debt Disclosure [Abstract] | ' | ' |
Capital Leases, 2014 | $36 | ' |
Capital Leases, 2015 | 48 | ' |
Capital Leases, 2016 | 48 | ' |
Capital Leases, 2017 | 48 | ' |
Capital Leases, 2018 | 43 | ' |
Capital Leases, Total | $223 | $235 |
Accrued_Liabilities_Other_Accr
Accrued Liabilities - Other - Accrued Liabilities - Other (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Payables And Accruals [Abstract] | ' | ' |
Taxes (other than income) and insurance | $669,000 | $769,000 |
Commissions | 619,000 | 645,000 |
Litigation and legal fees | 155,000 | 121,000 |
Other professional fees | 530,000 | 624,000 |
Environmental | 8,028,000 | 4,589,000 |
Warranty | 1,246,000 | 1,145,000 |
Deferred revenue | 222,000 | 54,000 |
Acquisition earn-out, current | 85,000 | 107,000 |
Other | 2,583,000 | 2,205,000 |
Accrued liabilities - other | $14,137,000 | $10,259,000 |
Accrued_Liabilities_Other_Summ
Accrued Liabilities - Other - Summary of Activity in Accrued Warranty and Service Liabilities (Detail) (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2014 |
Payables And Accruals [Abstract] | ' |
Liability, beginning of year | $1,145 |
Expense for new warranties issued | 244 |
Warranty claims paid | -143 |
Liability, end of period | $1,246 |
Other_LongTerm_Liabilities_Oth
Other Long-Term Liabilities - Other Long-Term Liabilities (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Other Liabilities Disclosure [Abstract] | ' | ' |
Environmental | $13,622,000 | $17,200,000 |
Unrecognized tax benefits, interest and penalties | 624,000 | 934,000 |
Long-term incentive plan | 350,000 | 322,000 |
Acquisition earn-out, long-term | ' | 9,000 |
Other long-term liabilities | $14,596,000 | $18,465,000 |
Commitments_and_Contingencies_
Commitments and Contingencies - Additional Information (Detail) (USD $) | 3 Months Ended | 0 Months Ended | 3 Months Ended | 3 Months Ended | ||
Mar. 31, 2014 | Dec. 31, 2013 | Feb. 13, 2013 | Mar. 31, 2014 | 10-May-13 | Mar. 31, 2014 | |
Operable_Unit | Pennsauken Site (OU-1 and OU-2) [Member] | Pennsauken Site (OU-1 and OU-2) [Member] | Pennsauken Site (OU-1 and OU-2) [Member] | SurfTech [Member] | ||
site | ||||||
Contingencies And Commitments [Line Items] | ' | ' | ' | ' | ' | ' |
Number of operable units | 2 | ' | ' | ' | ' | ' |
Payment for past cost as per agreement installment amount | ' | ' | ' | $2,141,000 | ' | ' |
Payment for past cost as per agreement aggregate amount | ' | ' | ' | 10,705,000 | ' | ' |
Payment related to obligation | ' | ' | ' | ' | 2,185,000 | ' |
Description of payment period | ' | ' | ' | 'The next four payments will be made on the anniversary of the first payment plus ten days | ' | ' |
State of NJ total claim for certain costs | ' | ' | ' | 1,800,000 | ' | ' |
State of NJ total claim for past and future cleanup costs | ' | ' | ' | 1,300,000 | ' | ' |
State of NJ total claim for natural resource damages | ' | ' | ' | 500,000 | ' | ' |
Company offer to resolve State of NJ claim | ' | ' | 250,000 | ' | ' | ' |
Company's estimated potential liability | ' | ' | ' | 17,477,000 | ' | ' |
Total environmental accruals | 21,650,000 | 21,789,000 | ' | ' | ' | ' |
Environmental accrual, long-term portion | $13,622,000 | $17,200,000 | ' | ' | ' | ' |
Number of sites | ' | ' | ' | ' | ' | 3 |
Number of sites owned by the company | ' | ' | ' | ' | ' | 2 |
Segment_Information_Additional
Segment Information - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2014 | |
Segment | |
Segment Reporting [Abstract] | ' |
Number of business segments | 4 |
Segment_Information_Comparativ
Segment Information - Comparative Results of Segment Information (Detail) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Net sales | ' | ' |
Net sales | $52,585,000 | $49,095,000 |
Income from operations | ' | ' |
Income from operations | 4,409,000 | 3,986,000 |
SLPE [Member] | ' | ' |
Net sales | ' | ' |
Net sales | 17,584,000 | 17,594,000 |
High Power Group [Member] | ' | ' |
Net sales | ' | ' |
Net sales | 20,310,000 | 17,093,000 |
SL-MTI [Member] | ' | ' |
Net sales | ' | ' |
Net sales | 10,852,000 | 9,094,000 |
RFL [Member] | ' | ' |
Net sales | ' | ' |
Net sales | 3,839,000 | 5,314,000 |
Operating Segments [Member] | SLPE [Member] | ' | ' |
Income from operations | ' | ' |
Income from operations | 939,000 | 1,050,000 |
Operating Segments [Member] | High Power Group [Member] | ' | ' |
Income from operations | ' | ' |
Income from operations | 2,917,000 | 2,114,000 |
Operating Segments [Member] | SL-MTI [Member] | ' | ' |
Income from operations | ' | ' |
Income from operations | 2,095,000 | 1,313,000 |
Operating Segments [Member] | RFL [Member] | ' | ' |
Income from operations | ' | ' |
Income from operations | -39,000 | 936,000 |
Unallocated Corporate [Member] | ' | ' |
Income from operations | ' | ' |
Income from operations | ($1,503,000) | ($1,427,000) |
Segment_Information_Total_Asse
Segment Information - Total Assets by Segment (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Total assets | ' | ' |
Total assets | $115,125,000 | $113,334,000 |
Operating Segments [Member] | SLPE [Member] | ' | ' |
Total assets | ' | ' |
Total assets | 33,387,000 | 36,835,000 |
Operating Segments [Member] | High Power Group [Member] | ' | ' |
Total assets | ' | ' |
Total assets | 31,009,000 | 29,506,000 |
Operating Segments [Member] | SL-MTI [Member] | ' | ' |
Total assets | ' | ' |
Total assets | 15,541,000 | 14,601,000 |
Operating Segments [Member] | RFL [Member] | ' | ' |
Total assets | ' | ' |
Total assets | 12,831,000 | 13,503,000 |
Unallocated Corporate [Member] | ' | ' |
Total assets | ' | ' |
Total assets | $22,357,000 | $18,889,000 |
Segment_Information_Goodwill_a
Segment Information - Goodwill and Other Intangible Assets, Net by Segment (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Goodwill and other intangible assets, net | ' | ' |
Goodwill and other intangible assets, net | $19,906 | $20,012 |
SLPE [Member] | ' | ' |
Goodwill and other intangible assets, net | ' | ' |
Goodwill and other intangible assets, net | 4,531 | 4,528 |
High Power Group [Member] | ' | ' |
Goodwill and other intangible assets, net | ' | ' |
Goodwill and other intangible assets, net | 9,894 | 9,976 |
SL-MTI [Member] | ' | ' |
Goodwill and other intangible assets, net | ' | ' |
Goodwill and other intangible assets, net | 98 | 106 |
RFL [Member] | ' | ' |
Goodwill and other intangible assets, net | ' | ' |
Goodwill and other intangible assets, net | $5,383 | $5,402 |
Retirement_Plans_and_Deferred_1
Retirement Plans and Deferred Compensation - Additional Information (Detail) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | ' | ' |
Costs incurred under defined contribution pension plan | $229,000 | $187,000 |
Amount charged to expenses in connection with agreements for supplemental benefits plans | $64,000 | $42,000 |
Minimum [Member] | ' | ' |
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | ' | ' |
Discount rates for supplemental retirement benefits plans | 6.00% | ' |
Maximum [Member] | ' | ' |
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | ' | ' |
Discount rates for supplemental retirement benefits plans | 12.00% | ' |
Discontinued_Operations_Additi
Discontinued Operations - Additional Information (Detail) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
site | ||
Discontinued Operations And Disposal Groups [Abstract] | ' | ' |
(Loss) income from discontinued operations before income taxes | $226,000 | $358,000 |
(Loss) income from discontinued operations, net of tax | $138,000 | $218,000 |
Number of environmental sites | 5 | ' |
Fair_Value_Measurement_and_Fin2
Fair Value Measurement and Financial Instruments - Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2013 |
In Thousands, unless otherwise specified | |||
Assets | ' | ' | ' |
Available-for-sale securities | $3,655 | $4,101 | $0 |
Derivative financial instruments | ' | 152 | ' |
Total Assets | ' | 4,253 | ' |
Liabilities | ' | ' | ' |
Derivative financial instruments | 211 | ' | ' |
Quoted Prices in Active Markets for Identical Assets and Liabilities (Level 1) [Member] | ' | ' | ' |
Assets | ' | ' | ' |
Available-for-sale securities | 3,655 | 4,101 | ' |
Derivative financial instruments | ' | ' | ' |
Total Assets | ' | 4,101 | ' |
Liabilities | ' | ' | ' |
Derivative financial instruments | ' | ' | ' |
Significant Other Observable Inputs (Level 2) [Member] | ' | ' | ' |
Assets | ' | ' | ' |
Available-for-sale securities | ' | ' | ' |
Derivative financial instruments | ' | 152 | ' |
Total Assets | ' | 152 | ' |
Liabilities | ' | ' | ' |
Derivative financial instruments | 211 | ' | ' |
Significant Unobservable Inputs (Level 3) [Member] | ' | ' | ' |
Assets | ' | ' | ' |
Available-for-sale securities | ' | ' | ' |
Derivative financial instruments | ' | ' | ' |
Total Assets | ' | ' | ' |
Liabilities | ' | ' | ' |
Derivative financial instruments | ' | ' | ' |
Fair_Value_Measurement_and_Fin3
Fair Value Measurement and Financial Instruments - Additional Information (Detail) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Fair Value Disclosures [Abstract] | ' |
Goodwill carrying amount before impairment | $5,055,000 |
Goodwill implied fair value | 0 |
Goodwill impairment charge | $5,055,000 |
Derivative_Instruments_and_Hed2
Derivative Instruments and Hedging Activities - Additional Information (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | ' | ' |
Fair value of the foreign currency forward contracts, (liability) assets | ($211,000) | $152,000 |
Derivative_Instruments_and_Hed3
Derivative Instruments and Hedging Activities - Notional Values of Company's Derivative Financial Instruments (Detail) (Not Designated as Hedging Instrument [Member]) | Mar. 31, 2014 | Mar. 31, 2014 |
In Thousands, unless otherwise specified | Mexican Peso (MXN) Forward Contracts [Member] | Chinese Yuan (CNH) Forward Contracts [Member] |
MXN | CNY | |
Derivative [Line Items] | ' | ' |
Number of Foreign Currency Forward Contracts Held | 20 | 18 |
Notional Amount of Foreign Currency Forward Contracts | 83,081 | 91,442 |
Derivative_Instruments_and_Hed4
Derivative Instruments and Hedging Activities - Gain or Loss Recognized on Foreign Currency Forward Contracts (Detail) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Gain or loss recognized on foreign currency forward contracts | ($363,000) | ($26,000) |
Not Designated as Hedging Instrument [Member] | Foreign Exchange Contracts [Member] | Other (Loss), Net [Member] | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Gain or loss recognized on foreign currency forward contracts | ($363,000) | ($26,000) |
Foreign_Operations_Additional_
Foreign Operations - Additional Information (Detail) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Foreign Operations [Abstract] | ' | ' |
Initiation date of manufacturing work stoppage | ' | 7-Mar-13 |
End date of manufacturing work stoppage | ' | 20-Mar-13 |
Adverse impact of work stoppage on revenues | ' | $900,000 |
Incremental costs of work stoppage | $0 | $734,000 |
Shareholders_Equity_Additional
Shareholders' Equity - Additional Information (Detail) (2010 Repurchase Plan [Member], USD $) | 3 Months Ended | |
Mar. 31, 2014 | Nov. 16, 2010 | |
2010 Repurchase Plan [Member] | ' | ' |
Equity, Class of Treasury Stock [Line Items] | ' | ' |
Stock Repurchase Program, number of shares authorized to be repurchased | ' | 470,000 |
Repurchase of common stock number of shares purchased | 2,000 | ' |
Treasury stock acquired, average cost per share | $24.52 | ' |
Stock Repurchase Program, remaining number of shares authorized to be repurchased | 241,000 | ' |
Related_Party_Transactions_Add
Related Party Transactions - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2014 | |
Related Party Transactions [Abstract] | ' |
Management Services Agreement effective date | 1-May-13 |
Management Services Agreement monthly fee | 10,400 |
Management Services Agreement term | '1 year |
Restructuring_Costs_Schedule_o
Restructuring Costs - Schedule of Restructuring Costs (Detail) (USD $) | 3 Months Ended |
Mar. 31, 2014 | |
Restructuring Cost and Reserve [Line Items] | ' |
Charged to Earnings | $463,000 |
Restructuring Plan 2014 [Member] | ' |
Restructuring Cost and Reserve [Line Items] | ' |
Accrual beginning balance | ' |
Charged to Earnings | 463,000 |
Cash Payments | 378,000 |
Accrual ending balance | $85,000 |
Restructuring_Costs_Additional
Restructuring Costs - Additional Information (Detail) (USD $) | 3 Months Ended |
Mar. 31, 2014 | |
Restructuring Cost and Reserve [Line Items] | ' |
Consolidated charge to earnings | $463,000 |
Restructuring Plan 2014 [Member] | ' |
Restructuring Cost and Reserve [Line Items] | ' |
Consolidated charge to earnings | $463,000 |
Number of employees terminated by the restructuring plan | 11 |
The total number of employees affected by the restructuring plan | 11 |