Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Feb. 27, 2015 | Jun. 30, 2014 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | ALAMO GROUP INC | ||
Entity Central Index Key | 897077 | ||
Current Fiscal Year End Date | -19 | ||
Entity Filer Category | Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | FALSE | ||
Entity Common Stock, Shares Outstanding | 11,321,093 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $629,639,351 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $39,533 | $63,960 |
Accounts receivable, net | 175,008 | 151,396 |
Inventories | 166,088 | 109,104 |
Deferred income taxes | 4,712 | 5,741 |
Prepaid expenses | 4,415 | 5,129 |
Income tax receivable | 3,546 | 1,623 |
Total current assets | 393,302 | 336,953 |
Rental equipment, net | 33,631 | 0 |
Property, plant and equipment | 171,667 | 158,376 |
Less: Accumulated depreciation | -100,497 | -96,472 |
Property, Plant and Equipment, Net | 71,170 | 61,904 |
Goodwill | 72,407 | 32,073 |
Intangible assets, net | 56,984 | 5,500 |
Deferred income taxes | 642 | 457 |
Other assets | 1,466 | 1,589 |
Total assets | 629,602 | 438,476 |
Current liabilities: | ||
Trade accounts payable | 47,741 | 45,593 |
Income taxes payable | 52 | 1,126 |
Accrued liabilities | 41,002 | 33,482 |
Current maturities of long-term debt and capital lease obligations | 551 | 420 |
Deferred income taxes | 21 | 0 |
Total current liabilities | 89,367 | 80,621 |
Long-term debt and capital lease obligation, net of current maturities | 190,024 | 8 |
Accrued pension liabilities | 5,714 | 2,538 |
Other long-term liabilities | 5,656 | 3,494 |
Deferred income taxes | 1,171 | 1,350 |
Stockholders’ equity: | ||
Common stock, $.10 par value, 20,000,000 shares authorized; 11,306,650 and 12,113,109 issued at December 31, 2014 and December 31, 2013, respectively | 1,130 | 1,211 |
Additional paid-in capital | 93,849 | 91,439 |
Treasury stock, at cost; 42,600 shares at December 31, 2014 and December 31, 2013 | -426 | -426 |
Retained earnings | 259,476 | 255,203 |
Accumulated other comprehensive (loss) income | -16,359 | 3,038 |
Total stockholders’ equity | 337,670 | 350,465 |
Total liabilities and stockholders’ equity | $629,602 | $438,476 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Stockholders' equity: | ||
Common stock, par value | $0.10 | $0.10 |
Common stock, shares authorized | 20,000,000 | 20,000,000 |
Common stock, shares issued | 11,306,650 | 12,113,109 |
Treasury stock, at cost | 42,600 | 42,600 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (USD $) | 12 Months Ended | ||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
Net sales: | |||||
Net sales: | $839,055 | $682,090 | [1] | $633,031 | [1] |
Cost of sales | 649,827 | 523,580 | 489,519 | ||
Gross profit | 189,228 | 158,510 | 143,512 | ||
Selling, general and administrative expenses | 126,564 | 107,773 | 97,507 | ||
Goodwill impairment | 0 | 0 | 656 | ||
Income from operations | 62,664 | 50,737 | [1] | 45,349 | [1] |
Interest expense | -4,037 | -1,161 | -1,620 | ||
Interest income | 211 | 186 | 234 | ||
Other income (expense), net | 1,767 | 1,626 | -517 | ||
Income before income taxes | 60,605 | 51,388 | 43,446 | ||
Provision for income taxes | 19,454 | 15,294 | 14,543 | ||
Net income | 41,151 | 36,094 | 28,903 | ||
Net income per common share: | |||||
Basic (in dollars per share) | $3.47 | $3 | $2.43 | ||
Diluted (in dollars per share) | $3.42 | $2.96 | $2.40 | ||
Average common shares: | |||||
Basic (in shares) | 11,875 | 12,050 | 11,899 | ||
Diluted (in shares) | 12,039 | 12,212 | 12,058 | ||
North American Industrial | |||||
Net sales: | |||||
Net sales: | 436,018 | 297,857 | [1] | 264,504 | [1] |
Income from operations | 39,377 | 25,743 | [1] | 19,313 | [1] |
North American Agricultural | |||||
Net sales: | |||||
Net sales: | 214,326 | 219,354 | [1] | 203,945 | [1] |
Income from operations | 11,714 | 17,880 | [1] | 18,319 | [1] |
European | |||||
Net sales: | |||||
Net sales: | 188,711 | 164,879 | [1] | 164,582 | [1] |
Income from operations | $11,573 | $7,114 | [1] | $7,717 | [1] |
[1] | As adjusted for the immaterial correction. See Note 1. |
Consolidated_Statements_of_Sto
Consolidated Statements of Stockholders' Equity (USD $) | Total | Common Stock | Additional Paid-in Capital | Treasury Stock | Retained Earnings | Accumulated Other Comprehensive Income |
In Thousands, except Share data, unless otherwise specified | ||||||
Balance at Dec. 31, 2011 | $277,276 | $1,190 | $85,704 | ($426) | $196,431 | ($5,623) |
Balance (shares) at Dec. 31, 2011 | 11,860,000 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 28,903 | 28,903 | ||||
Translation adjustment | 4,445 | 4,445 | ||||
Net actuarial loss arising during period net of taxes | -453 | -453 | ||||
Tax effect of exercised non-qualified stock options | -102 | -102 | ||||
Stock-based compensation | 940 | 940 | ||||
Exercise of stock options, shares | 126,000 | |||||
Exercise of stock options | 2,131 | 13 | 2,118 | |||
Dividends paid | -2,854 | -2,854 | ||||
Balance at Dec. 31, 2012 | 310,286 | 1,203 | 88,660 | -426 | 222,480 | -1,631 |
Balance (shares) at Dec. 31, 2012 | 11,986,000 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 36,094 | 36,094 | ||||
Translation adjustment | 479 | 479 | ||||
Net actuarial loss arising during period net of taxes | 4,190 | 4,190 | ||||
Stock-based compensation | 1,501 | 1,501 | ||||
Exercise of stock options, shares | 85,000 | |||||
Exercise of stock options | 1,286 | 8 | 1,278 | |||
Dividends paid | -3,371 | -3,371 | ||||
Balance at Dec. 31, 2013 | 350,465 | 1,211 | 91,439 | -426 | 255,203 | 3,038 |
Balance (shares) at Dec. 31, 2013 | 12,071,000 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 41,151 | 41,151 | ||||
Translation adjustment | -16,331 | -16,331 | ||||
Net actuarial loss arising during period net of taxes | -3,066 | -3,066 | ||||
Tax effect of exercised non-qualified stock options | 94 | 94 | ||||
Stock-based compensation | 1,986 | 1,986 | ||||
Exercise of stock options, shares | 43,000 | |||||
Exercise of stock options | 903 | 4 | 899 | |||
Repurchased shares | -34,204 | -34,204 | ||||
Retirement of shares (shares) | -850,000 | |||||
Retirement of shares | 0 | -85 | -569 | 34,204 | -33,550 | |
Dividends paid | -3,328 | -3,328 | ||||
Balance at Dec. 31, 2014 | $337,670 | $1,130 | $93,849 | ($426) | $259,476 | ($16,359) |
Balance (shares) at Dec. 31, 2014 | 11,264,000 |
Consolidated_Statements_of_Sto1
Consolidated Statements of Stockholders' Equity (Parenthetical) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Statement of Stockholders' Equity [Abstract] | |||||||||||
Dividends per share (in dollars per share) | $0.07 | $0.07 | $0.07 | $0.07 | $0.07 | $0.07 | $0.07 | $0.07 | $0.28 | $0.28 | $0.24 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Statement of Comprehensive Income [Abstract] | |||
Net income | $41,151 | $36,094 | $28,903 |
Other comprehensive income (loss): | |||
Foreign currency translation adjustment | -16,331 | 479 | 4,445 |
Net (loss) gain on pension and other postretirement benefits | -4,938 | 6,706 | -574 |
Other comprehensive (loss) income before income tax (benefit) expense | -21,269 | 7,185 | 3,871 |
Income tax benefit (expense) related to items of other comprehensive income (loss) | 1,872 | -2,516 | 121 |
Other comprehensive (loss) income | -19,397 | 4,669 | 3,992 |
Comprehensive income | $21,754 | $40,763 | $32,895 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Operating Activities | |||
Net income | $41,151 | $36,094 | $28,903 |
Adjustments to reconcile net income to cash provided by operating activities: | |||
Provision for doubtful accounts | 469 | 31 | 253 |
Depreciation | 10,645 | 8,898 | 9,948 |
Amortization of intangibles | 2,005 | 0 | 0 |
Amortization of debt issuance | 183 | 126 | 126 |
Goodwill impairment | 0 | 0 | 656 |
Stock-based compensation | 1,986 | 1,501 | 940 |
Excess tax expense (benefit) from stock-based payment arrangements | -94 | 0 | 102 |
Provision for deferred income tax (benefit) expense | -108 | -877 | -405 |
(Gain) Loss on sale of property, plant and equipment | -911 | -237 | 155 |
Changes in operating assets and liabilities, net of effect of acquisitions: | |||
Accounts receivable | -12,596 | -10,515 | 4,770 |
Inventories | -10,993 | 776 | 6,932 |
Rental equipment | -5,184 | 0 | 0 |
Prepaid expenses and other | 6,661 | -925 | -2,376 |
Trade accounts payable and accrued liabilities | 1,202 | 4,420 | 960 |
Income taxes payable | -3,075 | -4,565 | 2,338 |
Other assets and liabilities, net | -1,131 | -3,100 | -2,039 |
Net cash provided by operating activities | 30,210 | 31,627 | 51,263 |
Investing Activities | |||
Acquisitions, net of cash acquired | -196,467 | -1,002 | 0 |
Purchase of property, plant and equipment | -9,806 | -13,639 | -4,654 |
Proceeds from sale of property, plant and equipment | 1,442 | 475 | 564 |
Net cash used in investing activities | -204,831 | -14,166 | -4,090 |
Financing Activities | |||
Borrowings on bank revolving credit facility | 273,000 | 0 | -7,000 |
Repayment on bank revolving credit facility | -83,000 | 0 | 0 |
Principal payments on long-term debt and capital leases | -682 | -399 | -2,117 |
Proceeds from issuance of long-term debt | 767 | 0 | 0 |
Debt issuance cost | -818 | 0 | 0 |
Dividends paid | -3,328 | -3,371 | -2,854 |
Proceeds from exercise of stock options | 903 | 1,286 | 2,131 |
Treasury stock | -34,204 | 0 | 0 |
Excess tax expense (benefit) from stock-based payment arrangements | 94 | 0 | -102 |
Net cash provided by (used in) financing activities | 152,732 | -2,484 | -9,942 |
Effect of exchange rate changes on cash | -2,538 | 692 | 772 |
Net change in cash and cash equivalents | -24,427 | 15,669 | 38,003 |
Cash and cash equivalents at beginning of the year | 63,960 | 48,291 | 10,288 |
Cash and cash equivalents at end of the year | 39,533 | 63,960 | 48,291 |
Cash paid during the year for: | |||
Interest | 3,320 | 1,118 | 1,837 |
Income taxes | $22,243 | $21,580 | $13,533 |
Significant_Accounting_Policie
Significant Accounting Policies | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Accounting Policies [Abstract] | ||||||||||
Significant Accounting Policies | SIGNIFICANT ACCOUNTING POLICIES | |||||||||
Description of the Business and Segments | ||||||||||
The Company manufactures, distributes and services high quality tractor-mounted mowing and other vegetation maintenance equipment, street sweepers, excavators, vacuum trucks, snow removal equipment, pothole patchers, zero turn radius mowers, agricultural implements and related aftermarket parts and services. | ||||||||||
The Company manages its business through three principal reporting segments: North American Agricultural, North American Industrial and European, which are discussed in Notes 16. | ||||||||||
Basis of Presentation and Principles of Consolidation | ||||||||||
The accompanying consolidated financial statements include the accounts of Alamo Group Inc. and its subsidiaries (the “Company” or “Alamo Group”), all of which are wholly owned. All intercompany accounts and transactions have been eliminated in consolidation. | ||||||||||
Certain reclassifications have been made to 2013 and 2012 to conform to the current presentation. The accompanying statement of income reflects the correction of a misclassification of freight revenue for the periods. Freight allowance given to customers was previously recorded as a reduction of cost of sales and has been reclassified to increase net sales and cost of sales in accordance with ASC 605-45-45-20. The reclassification of net sales and cost of sales for the years ended December 31, 2013 and 2012 resulted in an increase of approximately $5.3 million and $4.6 million, respectively, with no impact on reported net income. These freight allowances for 2014 were $5.5 million. | ||||||||||
Use of Estimates | ||||||||||
The preparation of financial statements in conformity with U.S. Generally Accepted Accounting Principles requires management to make estimates and assumptions that affect the amount of assets, liabilities, revenues, and expenses reported in the financial statements and accompanying notes. Judgments related to asset impairment and certain reserves are particularly subject to change. Actual results could differ from those estimates. | ||||||||||
Foreign Currency | ||||||||||
The Company translates the assets and liabilities of foreign-owned subsidiaries at rates in effect at the end of the year. Revenues and expenses are translated at average rates in effect during the reporting period. Translation adjustments are included in accumulated other comprehensive income (loss). | ||||||||||
The Company enters into foreign currency forward contracts to hedge its exposure to certain foreign currency transactions. The Company does not hold or issue financial instruments for trading purposes. Changes in the market value of the foreign currency instruments are recognized in the financial statements upon settlement of the hedged transaction. On December 31, 2014, the Company had a notional amount of $2,527,000 in outstanding forward exchange contracts related to sales. The unrealized loss of the December 31, 2014 contracts that the Company expects to incur during the first quarter of 2015 is approximately $27,000, net of taxes. Foreign currency transaction gains or losses are included in Other income (expense), net. For 2014, 2013 and 2012, such transactions netted gains of $503,000 and $921,000, and a loss of $476,000, respectively. | ||||||||||
Cash Equivalents | ||||||||||
The Company considers all highly liquid investments with original maturities of three months or less to be cash equivalents. As of December 31, 2014 and December 31, 2013, there was no restricted cash. | ||||||||||
Concentrations of Credit Risk | ||||||||||
Financial instruments which potentially subject the Company to concentrations of credit risk consist principally of accounts receivable. The credit risk is limited because of the large numbers and types of customers and their geographic dispersion. | ||||||||||
Inventories | ||||||||||
Inventories of U.S. operating subsidiaries are stated at the lower of cost (last-in, first-out method) (“LIFO”) or market, and the Company’s international subsidiaries’ inventories are stated at the lower of cost (first-in, first-out) (“FIFO”) or market. | ||||||||||
Property, Plant and Equipment | ||||||||||
Property, plant, and equipment are stated on the basis of cost. Major renewals and betterments are charged to the property accounts while replacements, maintenance and repairs, which do not improve or extend the lives of the respective assets, are expensed to the current period. Depreciation is provided at amounts calculated to amortize the cost of the assets over their estimated useful economic lives using the straight-line method. | ||||||||||
Goodwill | ||||||||||
Goodwill consists of the excess of the purchase price over the fair value of identifiable net assets of businesses acquired. We perform our annual goodwill impairment test as of December 31 and monitor for interim triggering events on an ongoing basis. Goodwill is reviewed for impairment utilizing a qualitative assessment or a two-step process. We have an option to make a qualitative assessment of a reporting unit's goodwill for impairment. If we choose to perform a qualitative assessment and determine the fair value more likely than not exceeds the carrying value, no further evaluation is necessary. For reporting units where we perform the two-step process, the first step requires us to compare the fair value of each reporting unit, which we primarily determine using an income approach based on the present value of discounted cash flows, to the respective carrying value, which includes goodwill. If the fair value of the reporting unit exceeds its carrying value, the goodwill is not considered impaired. If the carrying value is higher than the fair value, there is an indication that an impairment may exist and the second step is required. In step two, the implied fair value of goodwill is calculated as the excess of the fair value of a reporting unit over the fair values assigned to its assets and liabilities. If the implied fair value of goodwill is less than the carrying value of the reporting unit's goodwill, the difference is recognized as an impairment loss. | ||||||||||
The Company estimates the fair value of its reporting units using a discounted cash flow analysis. This analysis requires the Company to make significant assumptions and estimates about the extent and timing of future cash flows, discount rates and growth rates. The cash flows are estimated over a significant future period of time, which makes those estimates and assumptions subject to an even higher degree of uncertainty. The Company also utilizes market valuation models and other financial ratios, which require the Company to make certain assumptions and estimates regarding the applicability of those models to its assets and businesses. As of December 31, 2014, goodwill was $72,407,000, which represents 12% of total assets. | ||||||||||
The Company recognized no goodwill impairment in 2014 or 2013. The Company recognized goodwill impairment at one of its French operations, Faucheux, of $656,000 in 2012. The primary reason for the goodwill impairment in 2012 was the general economic downturn that affected the Company's European operations. This caused the Company to revise its expectations about future revenue, which is a significant factor in the discounted cash flow analysis used to estimate the fair value of the Company's reporting units. During the 2014 impairment analysis review, we performed a sensitivity analysis for goodwill impairment with respect to each of our reporting units and determined that a hypothetical 15% decline in the fair value of each reporting unit as of December 31, 2014 would not result in an impairment of goodwill for any of the reporting units. | ||||||||||
Management believes that the estimated valuations it arrived at are reasonable and consistent with what other marketplace participants would use in valuing the Company's components. However, management cannot give any assurance that these market values will not change in the future. For example, if discount rates demanded by the market increase, this could lead to reduced valuations under the income approach. If the Company's projections are not achieved in the future, this could lead management to reassess their assumptions and lead to reduced valuations under the income approach. If the market price of the Company's stock decreases, this could cause the Company to reassess the reasonableness of the implied control premium, which might cause management to assume a higher discount rate under the income approach which could lead to reduced valuations. If future similar transactions exhibit lower multiples than those observed in the past, this could lead to reduced valuations under the similar transactions approach. And finally, if there is a general decline in the stock market and particularly in those companies selected as comparable to the Company's components, this could lead to reduced valuations under the public company market multiple approach. The Company's annual impairment test is performed during the fourth quarter of each fiscal year. Given the current market conditions and continued economic uncertainty, the fair value of the Company's components could deteriorate which could result in the need to record impairment charges in future periods. The Company also monitors potential triggering events including changes in the business climate in which it operates, attrition of key personnel, volatility in the capital markets, the Company's market capitalization compared to its book value, the Company's recent operating performance, and the Company's financial projections. The occurrence of one or more triggering events could require additional impairment testing, which could result in future impairment charges. | ||||||||||
See Note 7 to the Consolidated Financial Statements for more information regarding goodwill. | ||||||||||
Intangible Assets | ||||||||||
The Company has intangible assets with both definite and indefinite useful lives. The definite-lived assets are trade names and trademarks, customer and dealer relationships, and patents and drawings that are subject to amortization with useful lives ranging from 12 years to 25 years. The net book value of these assets at December 31, 2014 was $51,484,000 and zero at December 31, 2013. | ||||||||||
The indefinite-lived assets not subject to amortization consist of trade names. The net book value of these trade names was $5,500,000 as of December 31, 2014 and December 31, 2013. This consisted of the Gradall trade name with a carrying value of $3,600,000 and the Bush Hog trade name with a carrying value of $1,900,000. The Company will tests its indefinite-lived intangible assets for impairment on an annual basis at year-end, or more frequently if an event occurs or circumstances change that indicate that the fair value of an indefinite-lived intangible asset could be below its carrying amount. The impairment test consists of comparing the fair value of the indefinite-lived intangible asset, determined using the relief from royalty method, with its carrying amount. An impairment loss would be recognized for the carrying amount in excess of its fair value. | ||||||||||
Pensions | ||||||||||
In connection with the February 3, 2006 purchase of all the net assets of the Gradall excavator business, the Company assumed sponsorship of two Gradall non-contributory defined benefit pension plans, both of which were frozen with respect to both future benefit accruals and future new entrants. | ||||||||||
The Gradall Company Hourly Employees’ Pension Plan covers approximately 331 former employees and 125 current employees who (i) were formerly employed by JLG Industries, Inc., (ii) were covered by a collective bargaining agreement and (iii) first participated in the plan before April 6, 1997. An amendment ceasing all future benefit accruals was effective April 6, 1997. | ||||||||||
The Gradall Company Employees’ Retirement Plan covers approximately 238 former employees and 83 current employees who (i) were formerly employed by JLG Industries, Inc., (ii) were not covered by a collective bargaining agreement, and (iii) first participated in the plan before December 31, 2004. An amendment ceasing future benefit accruals for certain participants was effective December 31, 2004. A second amendment discontinued all future benefit accruals for all participants effective April 24, 2006. | ||||||||||
The Company recognizes the funded status of the defined benefit pension plans as a liability in its statement of financial position and recognizes any changes in that funded status in the year in which the changes occur through other comprehensive income (loss). | ||||||||||
Related Party Transactions | ||||||||||
There were no reportable relationships or related party transactions for the years ended December 31, 2014 and 2013. | ||||||||||
Revenue Recognition | ||||||||||
The Company recognizes revenue when each of the following four criteria are met: 1) a contract or sales arrangement exists; 2) products have been shipped per agreed terms and title has been transferred or services have been rendered; 3) the prices of the products or services are fixed or determinable; and 4) collectability is reasonably assured. Pre-season sales orders are solicited in the fall in advance of the dealer’s sales season in the spring and summer. Pre-season sales orders are shipped beginning in the fall and continuing through the spring and represent an opportunity for the Company’s factories to level their production/shipping volumes through the winter months. These pre-season shipments carry descending discounts in conjunction with delayed payment terms of up to six months from the dealer’s requested delivery date. Revenue from sales is recorded net of a provision for discounts that are anticipated to be earned and deducted at time of payment by the customer. These approximated discounts are estimated using an average of historical discounts taken and are adjusted as program terms are changed. The reserves for discounts are reviewed and adjusted quarterly. From time to time, revenue is recognized under a bill and hold arrangement. Revenue recognized under bill and hold arrangements for 2014, 2013, and 2012 was immaterial. | ||||||||||
Rental Equipment | ||||||||||
The Company enters into lease agreements with customers related to the rental of certain equipment. All of these leasing agreements are classified as operating leases, and are for periods not to exceed two years. In accounting for these leases, the cost of the equipment purchased or manufactured by the Company is recorded as an asset, and is depreciated over its estimated useful life. Accumulated depreciation relating to the rental equipment was $3,435,000 as of December 31, 2014. The rental income is recognized ratably over the term of the leases. | ||||||||||
Accounting for Internal Use Software | ||||||||||
The Company capitalizes certain costs associated with the development and installation of internal use software. Internal use software costs are expensed or capitalized depending on whether they are incurred in the preliminary project stage, application development stage or the post-implementation stage. Amounts capitalized are amortized over the estimated useful lives of the software. | ||||||||||
The book value of capitalized software net of amortization was approximately $1,370,000 and $944,000 on December 31, 2014 and December 31, 2013, respectively. Software amortization expense was $556,000, $488,000 and $676,000 in 2014, 2013 and 2012, respectively. Internal use software is amortized for financial reporting purposes using the straight-line method over the estimated life of three to seven years. | ||||||||||
Shipping and Handling Costs | ||||||||||
The Company’s policy is to include shipping and handling costs in costs of goods sold. | ||||||||||
Advertising | ||||||||||
We charge advertising costs to expense as incurred. Advertising and marketing expense related to operations for fiscal years 2014, 2013 and 2012 was approximately $7,368,000, $6,646,000 and $6,353,000, respectively. Advertising and marketing expenses are included in Selling, General and Administrative expenses (“SG&A”). | ||||||||||
Research and Development | ||||||||||
Product development and engineering costs charged to SG&A amounted to $8,427,000, $7,164,000, and $5,686,000 for the years ended December 31, 2014, 2013 and 2012, respectively. | ||||||||||
Legal Costs | ||||||||||
The Company’s policy is to accrue for legal costs expected to be incurred in connection with loss contingencies. | ||||||||||
Federal Income Taxes | ||||||||||
Deferred tax assets and liabilities are determined based on differences between the financial reporting basis and tax basis of assets and liabilities, and are measured by applying enacted statutory tax rates applicable to the future years in which deferred tax assets or liabilities are expected to be settled or realized. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversals of deferred tax liabilities, projected future taxable income, available tax carrybacks and tax planning strategies in making this assessment other than those which we have reserved. Based upon projections of future taxable income over the periods in which the deferred tax assets are deductible, management believes it is more likely than not that we will realize the benefits of these deductible differences. | ||||||||||
We do not provide for a U.S. income tax liability on undistributed earnings of our foreign subsidiaries. The earnings of non-U.S. subsidiaries, which reflect full provision for non-U.S. income taxes, are currently indefinitely reinvested in non-U.S. operations. | ||||||||||
Stock-Based Compensation | ||||||||||
The Company has granted options to purchase its common stock to certain employees and directors of the Company and its affiliates under various stock option plans at no less than the fair market value of the underlying stock on the date of grant. These options are granted for a term not exceeding ten years and are forfeited in the event the employee or director terminates his or her employment or relationship with the Company or one of its affiliates other than by retirement or death. These options generally vest over five years. All option plans contain anti-dilutive provisions that permit an adjustment of the number of shares of the Company’s common stock represented by each option for any change in capitalization. | ||||||||||
The fair value of each stock option is estimated on the date of grant using the Black-Scholes valuation method with the following assumptions noted: | ||||||||||
1 | The risk-free rate is based on the U.S. Treasury rate over the expected life of the option at the time of the grant. | |||||||||
2 | The dividend yield is calculated as the ratio of dividends paid per share of common stock to the stock price on the date of the grant. | |||||||||
3 | The expected volatility factors are based on the historical movement of the Company’s common stock price over the expected life of the option. | |||||||||
4 | The expected life is the average length of time in which officers, other employees, and non-employee directors are expected to exercise their options, and which are primarily based on historical experience. | |||||||||
The Company calculated the fair value for options with the following weighted-average assumptions for 2014, 2013, and 2012: | ||||||||||
December 31, | ||||||||||
2014 | 2013 | 2012 | ||||||||
Risk-free interest rate | 2.24 | % | 1.38 | % | 1.44 | % | ||||
Dividend yield | 0.5 | % | 0.8 | % | 1.2 | % | ||||
Volatility factors | 48.2 | % | 47.9 | % | 46.7 | % | ||||
Weighted-average expected life | 8.0 years | 8.0 years | 8.0 years | |||||||
Fair Value of Financial Instruments | ||||||||||
The carrying values of certain financial instruments, including cash and cash equivalents, accounts receivable, accounts payable, and accrued expenses, approximate fair value because of the short-term nature of these items. The carrying value of our debt approximates the fair value as of December 31, 2014 and 2013, as the floating rates on our outstanding balances approximate current market rates. This conclusion was made based on Level 2 inputs. |
Acquisitions_and_Investments
Acquisitions and Investments | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Business Combinations [Abstract] | |||||||||
Acquisitions and Investments | ACQUISITIONS AND INVESTMENTS | ||||||||
Specialized | |||||||||
On May 13, 2014 the "Closing Date", the Company acquired all of the operating units of Specialized Industries LP, a portfolio company of ELB Capital Management, LLC. The purchase included the businesses of Super Products LLC, Wausau-Everest LP and Howard P. Fairfield LLC as well as several related entities ("Specialized"), including all brand names and related product names and trademarks (the "Acquisition") pursuant to the terms of the Membership Interests and Partnership Interests Purchase Agreement dated February 24, 2014 (the “Agreement”). The purchase price consideration was $193 million, on a debt-free basis which included certain post-closing adjustments that were made within 90 days from the Acquisition date per the agreement. | |||||||||
In connection with the Acquisition on May 13, 2014, Alamo Group amended its revolving credit facility and increased its line of credit from $100 million to $250 million. Alamo Group financed the Acquisition through $190 million of new borrowings under the amended credit facility. | |||||||||
The Acquisition was accounted for in accordance with ASC Topic 805 Business Combinations (“ASC Topic 805”). Accordingly, the total purchase price has been allocated to assets acquired and liabilities assumed in connection with the Acquisition, based on their fair values as of May 12, 2014. | |||||||||
The primary reason for the Specialized acquisition was to broaden the Company's existing equipment lines. This acquisition broadens our product offering and enhances our market position both in vacuum trucks and snow removal equipment. | |||||||||
The Company completed its evaluation of the purchase price allocation during the fourth quarter of 2014, which included the fair value of accounts receivable, inventory, rental equipment, property, plant and equipment, intangibles, accrued liabilities and deferred taxes. This required the Company to adjust the recorded goodwill. | |||||||||
The following table summarizes the fair value of the assets acquired and liabilities assumed as of the Acquisition date (in thousands): | |||||||||
Cash | $ | 2,025 | |||||||
Accounts receivable | 16,290 | ||||||||
Inventory | 47,500 | ||||||||
Prepaid expenses | 3,223 | ||||||||
Deferred income tax assets | 1,554 | ||||||||
Rental equipment | 28,446 | ||||||||
Property, plant & equipment | 13,214 | ||||||||
Intangible assets | 53,900 | ||||||||
Other assets | 675 | ||||||||
Deferred income tax liabilities | (4,293 | ) | |||||||
Other liabilities assumed | (10,962 | ) | |||||||
Net assets assumed | 151,572 | ||||||||
Goodwill | 41,327 | ||||||||
Acquisition Price | $ | 192,899 | |||||||
Intangible assets determined to be definite-lived assets and are broken down as follows: | |||||||||
(in thousands) | Estimated Useful Lives | Value at Acquisition | |||||||
Definite: | |||||||||
Trade names and trademarks | 25 | $ | 22,200 | ||||||
Customer and dealer relationships | 14 | 29,700 | |||||||
Patents and drawings | 12 | 2,000 | |||||||
Total | $ | 53,900 | |||||||
The valuation did not identify indefinite-lived assets during the analysis. | |||||||||
Other liabilities consisted of Accounts payable of $4.1 million and the remaining amount consisted of various assumed accrued liabilities. | |||||||||
This allocation resulted in goodwill of $41.3 million, all of which has been assigned to the Company's Industrial reporting segment. $6.5 million of goodwill is tax deductible the remaining balance is not. The recognized goodwill is primarily attributable to expected synergies in both the vacuum truck and snow removal product lines. | |||||||||
Under ASC Topic 805-10, acquisition related costs (i.e., advisory, legal, valuation and other professional fees) are not included as a component of consideration transferred, but are accounted for as expenses in the periods in which the costs are incurred. The Company incurred $1.8 million of acquisition related costs, which have been recorded in Selling, general and administrative expenses on the consolidated statement of income. The Company will incur integration expenses during 2015 and 2016 relating to manufacturing process changes and computer conversion. They are expected to be immaterial. | |||||||||
In the period between the Acquisition Date and December 31, 2014, the Specialized business units generated approximately $107.4 million of net sales and $5.1 million of net income. The Company has included the operating results of Specialized in its consolidated financial statements since the Acquisition Date. | |||||||||
The following table presents the unaudited pro forma combined results of operations of the Company and the acquired business units of Specialized as if the acquisition had occurred on January 1, 2013 for the years ended December 31, 2014 and December 31, 2013. This includes certain pro forma adjustments including: (i) recognition of the costs related to the step-up in fair value of the Specialized inventory, (ii) amortization of acquired intangible assets, (iii) the impact of certain fair value adjustments such as depreciation on the acquired rental equipment and property, plant and equipment, and (iv) interest expense for historical long-term debt of Specialized that was repaid and interest expense on additional borrowings by the Company to fund the acquisition. The unaudited pro forma statement of income of the Company is as follows: | |||||||||
(Unaudited) Year Ended | |||||||||
December 31, | |||||||||
(In thousands, except per share amounts) | 2014 | 2013 | |||||||
Net sales | $ | 882,568 | $ | 828,809 | |||||
Net income | $ | 42,575 | $ | 37,306 | |||||
Diluted earnings per share | $ | 3.54 | $ | 3.05 | |||||
The unaudited pro forma financial information is presented for informational purposes only and is not intended to represent or be indicative of the consolidated results of operations of the Company that would have been reported had the acquisition been completed as of the beginning of the periods presented, and should not be taken as being representative of the future consolidated results of operations of the Company. | |||||||||
Other Acquisitions | |||||||||
The Company also completed two smaller acquisitions during the second quarter of 2014. Kellands Agricultural Ltd. was acquired on April 2, 2014 and Fieldquip Australia PTY LTD was acquired on April 7, 2014. Both acquisitions were on a debt free basis and subject to certain post-closing adjustments with total consideration of $5,594,000. | |||||||||
These acquisitions are being accounted for in accordance with ASC Topic 805. Accordingly, the total purchase price has been allocated on a preliminary basis to assets acquired and liabilities assumed based on their estimated fair values as of the completion of the acquisitions. These allocations reflect various provisional estimates that were available at the time and are subject to change during the purchase price allocation period as valuations are finalized. | |||||||||
The primary reason for the Kellands acquisition was to increase the Company's presence in the manufacturing and distribution of agricultural machinery in the UK. This acquisition broadens our product offering and allows the Company to enter the self-propelled sprayer market. | |||||||||
The primary reason for the Fieldquip acquisition was to broaden the Company's presence in the manufacturing and distribution of agricultural machinery in Australia. |
Earnings_Per_Share
Earnings Per Share | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Earnings Per Share [Abstract] | ||||||||||||
Earnings Per Share | EARNINGS PER SHARE | |||||||||||
The following table sets forth the reconciliation from basic to diluted average common shares and the calculations of net income per common share. Net income for basic and diluted calculations does not differ. | ||||||||||||
(in thousands, except per share amounts) | 2014 | 2013 | 2012 | |||||||||
Net income | $ | 41,151 | $ | 36,094 | $ | 28,903 | ||||||
Average common shares: | ||||||||||||
Basic (weighted-average outstanding shares) | 11,875 | 12,050 | 11,899 | |||||||||
Dilutive potential common shares from stock options | 164 | 162 | 159 | |||||||||
12,039 | 12,212 | 12,058 | ||||||||||
Diluted (weighted-average outstanding shares) | ||||||||||||
Basic earnings per share | $ | 3.47 | $ | 3 | $ | 2.43 | ||||||
Diluted earnings per share | $ | 3.42 | $ | 2.96 | $ | 2.4 | ||||||
Stock options totaling 37,261 shares in 2014, 3,831 shares in 2013, and 38,954 shares in 2012 were not included in the diluted earnings per share calculation because the effect would have been anti-dilutive. |
Valuation_and_Qualifying_Accou
Valuation and Qualifying Accounts | 12 Months Ended | |||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||
Receivables [Abstract] | ||||||||||||||||||||||
Valuation and Qualifying Accounts | VALUATION AND QUALIFYING ACCOUNTS | |||||||||||||||||||||
Valuation and qualifying accounts included the following: | ||||||||||||||||||||||
Balance | Net | Translations, | Net Write-Offs or | Balance | ||||||||||||||||||
Beginning of | Charged to | Reclassifications | Discounts Taken | End of | ||||||||||||||||||
Year | Costs and | and Acquisitions | Year | |||||||||||||||||||
(in thousands) | Expenses | |||||||||||||||||||||
2014 | ||||||||||||||||||||||
Allowance for doubtful accounts | $ | 2,738 | $ | 469 | $ | (153 | ) | $ | (201 | ) | $ | 2,853 | ||||||||||
Reserve for sales discounts | 16,724 | 79,877 | (98 | ) | (80,504 | ) | 15,999 | |||||||||||||||
Reserve for inventory obsolescence | 8,596 | 2,938 | (297 | ) | (3,636 | ) | 7,601 | |||||||||||||||
Reserve for warranty | 4,994 | 7,467 | 843 | (7,391 | ) | 5,913 | ||||||||||||||||
2013 | ||||||||||||||||||||||
Allowance for doubtful accounts | $ | 3,077 | $ | 31 | $ | 62 | $ | (432 | ) | $ | 2,738 | |||||||||||
Reserve for sales discounts | 15,005 | 76,184 | — | (74,465 | ) | 16,724 | ||||||||||||||||
Reserve for inventory obsolescence | 9,099 | 2,586 | (157 | ) | (2,932 | ) | 8,596 | |||||||||||||||
Reserve for warranty | 5,007 | 6,410 | 80 | (6,503 | ) | 4,994 | ||||||||||||||||
2012 | ||||||||||||||||||||||
Allowance for doubtful accounts | $ | 3,215 | $ | 253 | $ | 113 | $ | (504 | ) | $ | 3,077 | |||||||||||
Reserve for sales discounts | 14,567 | 65,481 | (16 | ) | (65,027 | ) | 15,005 | |||||||||||||||
Reserve for inventory obsolescence | 7,630 | 2,998 | 79 | (1,608 | ) | 9,099 | ||||||||||||||||
Reserve for warranty | 5,083 | 6,646 | 82 | (6,804 | ) | 5,007 | ||||||||||||||||
Allowance for Doubtful Accounts | ||||||||||||||||||||||
The Company evaluates the collectability of its accounts receivable based on a combination of factors. In circumstances where it is aware of a specific customer’s inability to meet its financial obligations, the Company records a specific reserve to reduce the amounts recorded to what it believes will be collected. | ||||||||||||||||||||||
The Company evaluates all receivables that are over 60 days old and will reserve specifically on a 90-day basis. The Company has a secured or insured interest on most of its wholegoods that each customer purchases. This allows the Company, in times of a difficult economy when the customer is unable to pay or has filed for bankruptcy, to repossess its inventory. This also allows Alamo Group in certain instances, to maintain only a reserve over its cost, which usually represents the margin on the original sales price. | ||||||||||||||||||||||
The allowance for doubtful accounts balance was $2,853,000 on December 31, 2014, and $2,738,000 on December 31, 2013. The increase was primarily from the acquisition of Specialized. | ||||||||||||||||||||||
Sales Discounts | ||||||||||||||||||||||
On December 31, 2014, the Company had $15,999,000 in reserves for sales discounts compared to $16,724,000 on December 31, 2013 on product shipped to our customers under various promotional programs. The decrease was due primarily to lower sales volume of the Company’s agricultural products during the 2014 pre-season, which runs during the third and fourth quarters of each year with orders shipped through the second quarter of 2015. The Company reviews the reserve quarterly based on analysis made on each program outstanding at the time. | ||||||||||||||||||||||
The Company bases its reserves on historical data relating to discounts taken by the customer under each program. Historically, between 90% and 95% of the Company’s customers who qualify for each program actually take the discount that is available. | ||||||||||||||||||||||
Inventories – Obsolete and Slow Moving | ||||||||||||||||||||||
The Company had a reserve of $7,601,000 on December 31, 2014 and $8,596,000 on December 31, 2013 to cover obsolete and slow moving inventory. The decrease in the reserve was mainly from the Company's Agricultural Division. The obsolete and slow moving inventory policy states that the reserve is to be calculated as follows: 1) no inventory usage over a three-year period is deemed obsolete and reserved at 100 percent; and 2) slow moving inventory with little usage requires a 100 percent reserve on items that have a quantity greater than a three-year supply. There are exceptions to the obsolete and slow moving classifications if approved by an officer of the Company, based on specific identification of an item or items that are deemed to be either included or excluded from this classification. In cases where there is no historical data, management makes a judgment based on a specific review of the inventory in question to determine what reserves, if any, are appropriate. New products or parts are generally excluded from the reserve policy until a three-year history has been established. | ||||||||||||||||||||||
Warranty | ||||||||||||||||||||||
The Company’s warranty policy is generally to provide its customers warranty for up to one year on all wholegood units and 90 days on parts, though some components can have warranty for longer terms. | ||||||||||||||||||||||
Warranty reserve, as a percentage of sales, is generally calculated by looking at the current twelve months’ expenses and prorating that amount based on twelve months’ sales with a ninety-day to six-month lag period. The Company’s historical experience is that an end-user takes approximately 90 days to six months from the receipt of the unit to file a warranty claim. A warranty reserve is established for each different marketing group. Reserve balances are evaluated on a quarterly basis and adjustments made when required. | ||||||||||||||||||||||
The current liability warranty reserve balance was $5,913,000 on December 31, 2014 and $4,994,000 on December 31, 2013 and are included in Note 9. The increase was primarily from the acquisition of the Specialized in the amount of $1,006,000. |
Inventories
Inventories | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Inventory Disclosure [Abstract] | |||||||||
Inventories | INVENTORIES | ||||||||
Inventories valued at LIFO represented 37% and 55% of total inventory for the years ended December 31, 2014 and 2013, respectively. The excess of current costs over LIFO-valued inventories was $10,230,000 and $9,483,000 on December 31, 2014 and December 31, 2013, respectively. (The $747,000 increase in LIFO reserve during 2014 came from reductions in inventory levels within U.S. operations. The impact of the application of the LIFO method on the Statement of Income for the years ended December 31, 2014, was an increase to cost of sales of $747,000, and an increase in 2013 of $508,000 and an decrease in 2012 of $484,000.) Inventories consisted of the following on a cost basis, net of reserves: | |||||||||
December 31, | |||||||||
(in thousands) | 2014 | 2013 | |||||||
Finished goods and parts | $ | 112,197 | $ | 84,548 | |||||
Work in process | 18,635 | 9,906 | |||||||
Raw materials | 35,256 | 14,650 | |||||||
$ | 166,088 | $ | 109,104 | ||||||
Property_Plant_and_Equipment
Property Plant and Equipment | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||
Property, Plant and Equipment | PROPERTY, PLANT AND EQUIPMENT | ||||||||||
Property, plant and equipment consist of the following: | |||||||||||
December 31, | |||||||||||
2014 | 2013 | Useful | |||||||||
(in thousands) | Lives | ||||||||||
Land | $ | 9,181 | $ | 8,708 | |||||||
Buildings and improvements | 72,514 | 62,169 | 5-20 yrs. | ||||||||
Machinery and equipment | 66,799 | 65,451 | 3-10 yrs. | ||||||||
Office furniture and equipment | 6,254 | 6,705 | 3-7 yrs. | ||||||||
Computer software | 11,283 | 10,557 | 3-7 yrs. | ||||||||
Transportation equipment | 5,636 | 4,786 | 3 yrs. | ||||||||
171,667 | 158,376 | ||||||||||
Accumulated depreciation | (100,497 | ) | (96,472 | ) | |||||||
$ | 71,170 | $ | 61,904 | ||||||||
Property, plant and equipment on December 31, 2014 and December 31, 2013 include capital leases in the amount of $412,000 and $7,246,000, respectively, which are included in the listings above. Accumulated depreciation relating to the capital leases on December 31, 2014 and 2013 was $308,000 and $4,749,000, respectively. Amortization related to the capital lease is included in depreciation expense. The decrease in capital leases in 2014 was due to the purchase of previously leased property. |
Goodwill
Goodwill | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Goodwill | GOODWILL | |||
The changes in the carrying amount of goodwill for the twelve months ended December 31, 2012, 2013 and 2014 are as follows: | ||||
(in thousands) | ||||
Balance at December 31, 2011 | $ | 31,751 | ||
Translation adjustment | 553 | |||
Goodwill impairment | (656 | ) | ||
Balance at December 31, 2012 | $ | 31,648 | ||
Translation adjustment | 425 | |||
Goodwill impairment | $ | — | ||
Balance at December 31, 2013 | $ | 32,073 | ||
Translation adjustment | (2,217 | ) | ||
Goodwill acquired | 42,551 | |||
Balance at December 31, 2014 | $ | 72,407 | ||
Definite_and_Indefinite_Lived_
Definite and Indefinite Lived Intangible Assets | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||
Definite and Indefinite lived Intangible Assets | DEFINITE AND INDEFINITE LIVED INTANGIBLE ASSETS | |||||||||||
The Company has determined the value of the definite and indefinite-lived assets as of December 31, 2014 and December 31, 2013. The addition of the definite-lived assets related to the Specialized acquisition made during the second quarter of 2014. The following is a summary of both the Company's definite and indefinite-lived intangible assets net of the accumulated amortization: | ||||||||||||
(in thousands) | Estimated Useful Lives | December 31, | December 31, 2013 | |||||||||
2014 | ||||||||||||
Definite: | ||||||||||||
Trade names and trademarks | 25 years | $ | 22,104 | — | ||||||||
Customer and dealer relationships | 14 years | 29,404 | — | |||||||||
Patents and drawings | 12 years | 1,968 | — | |||||||||
Total at cost | 53,476 | — | ||||||||||
Less accumulated amortization | 1,992 | — | ||||||||||
Total net | 51,484 | — | ||||||||||
Indefinite: | ||||||||||||
Trade names and trademarks | 5,500 | 5,500 | ||||||||||
Total Intangible Assets | $ | 56,984 | $ | 5,500 | ||||||||
The Company's net carrying value of intangible assets with definite useful lives consists of trade names and trademarks at $21,548,000, customer and dealer relationships at$28,068,000 and patents and drawings at $1,868,000 . As of December 31, 2014, the related accumulated amortization balance for the definite lived assets were $556,000 for trade names and trademarks, $1,336,000 for customer and dealer relationships, and $100,000 for Patents and drawings. The Company estimates amortization expense to be $3,176,000 for each of the next five years. |
Accrued_Liabilities
Accrued Liabilities | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Payables and Accruals [Abstract] | |||||||||
Accrued Liabilities | ACCRUED LIABILITIES | ||||||||
Accrued liabilities consist of the following balances: | |||||||||
December 31, | |||||||||
(in thousands) | 2014 | 2013 | |||||||
Salaries, wages and bonuses | $ | 20,635 | $ | 15,509 | |||||
Warranty | 5,913 | 4,994 | |||||||
State taxes | 3,997 | 5,217 | |||||||
Other | 10,457 | 7,762 | |||||||
$ | 41,002 | $ | 33,482 | ||||||
LongTerm_Debt
Long-Term Debt | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Debt Disclosure [Abstract] | |||||||||
Long-Term Debt | LONG-TERM DEBT | ||||||||
The components of long-term debt are as follows: | |||||||||
December 31, | |||||||||
(in thousands) | 2014 | 2013 | |||||||
Bank revolving credit facility | $ | 190,000 | $ | — | |||||
Capital lease obligations | 59 | 120 | |||||||
Other notes payable | 516 | 308 | |||||||
Total debt | 190,575 | 428 | |||||||
Less current maturities | 551 | 420 | |||||||
Total long-term debt | $ | 190,024 | $ | 8 | |||||
Effective May 12, 2014, the Company amended its revolving credit facility and increased its line of credit from $100,000,000 to $250,000,000 to accommodate the acquisition of the Specialized business units and meet the ongoing needs of the combined entities. | |||||||||
The Company maintains a revolving credit facility with certain lenders under its Amended and Restated Revolving Credit Agreement. The aggregate commitments from lenders under such revolving credit facility total $250,000,000 and, subject to certain conditions, the Company has the option to request an increase in aggregate commitments of up to an additional $50,000,000. The revolving credit agreement requires us to maintain various financial covenants including a minimum earnings before interest and taxes (EBIT) to interest expense ratio, a minimum leverage ratio and a minimum asset coverage ratio. The agreement also contains various covenants relating to limitations on indebtedness, limitations on investments and acquisitions, limitations on sale of properties, and limitations on liens and capital expenditures. The revolving credit agreement also contains other customary covenants, representations and events of defaults. As of December 31, 2014, the Company was in compliance with the covenants under the revolving credit facility. The termination date of the revolving credit facility is May 12, 2019. As of December 31, 2014, $190,000,000 was outstanding under the revolving credit facility with a weighted average interest rate of 2.5%. On December 31, 2014, $1,090,000 of the revolver capacity was committed to irrevocable standby letters of credit issued in the ordinary course of business as required by vendors’ contracts resulting in $58,910,000 in available borrowings. | |||||||||
The aggregate maturities of long-term debt, as of December 31, 2014, are as follows: $516,000 in 2015; zero in 2016, 2017 and 2018; $190,000,000 in 2019 and zero thereafter. | |||||||||
The fair value of the Company’s debt is based on secondary market indicators. Since the Company’s debt is not quoted, estimates are based on each obligation’s characteristics, including remaining maturities, interest rate, credit rating, collateral, amortization schedule and liquidity. The carrying value of our debt approximates the fair value as of December 31, 2014 and 2013, as the floating rates on our outstanding balances approximate current market rates. This conclusion was made based on Level 2 inputs. |
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2014 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | FAIR VALUE MEASUREMENTS |
Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. There is a three-tier fair value hierarchy based upon the observability of inputs used in valuation techniques. Observable inputs (highest level) reflect market data obtained from independent sources, while unobservable inputs (lowest level) reflect internally developed market assumptions. In fair value, measurements are classified under the following hierarchy: | |
Level 1 – Quoted prices for identical assets or liabilities in active markets. | |
Level 2 – Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs or significant value-drivers are observable in active markets. | |
Level 3 – Model-derived valuations in which one or more significant inputs or significant value-drivers are unobservable. | |
The Company uses quoted market prices, when available, to determine fair value, and the Company classifies such measurements within Level 1. In some cases where market prices are not available, the Company makes use of observable market-based inputs to calculate fair value, in which case the measurements are classified with Level 2. If quoted or observable market prices are not available, fair value is based upon internally developed models that use, where possible, current market-based parameters such as interest rates, yield curves, currency rates, etc. These measurements are classified within Level 3. | |
Fair value measurements are classified to the lowest level input or value-driver that is significant to the valuation. A measurement may therefore be classified within Level 3 even though there may be significant inputs that are readily observable. The Company does not currently have any assets or liabilities recorded at fair value on a recurring basis. Fair value measurements are also used in connection with nonrecurring valuations performed in connection with impairment assessments and acquisition accounting. In completing the analysis of the fair values of certain of the acquired assets in the current year acquisitions, discounted cash flow models were used, which were principally based upon internal assumptions. In valuing certain of the acquired intangible assets we used an excess earnings methodology, which is a form of a discounted cash flow analysis. Tangible assets were valued using a replacement or reproduction cost approach, considering factors such as current prices of the same or similar equipment, the age of the equipment and economic obsolescence. The implied value of goodwill is determined by allocating the acquisition cost to all of the assets and liabilities of the acquired entity, with the residual amount allocated to goodwill. All of our nonrecurring valuations use significant unobservable inputs and therefore fall under Level 3 of the fair value hierarchy. |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||
Income Taxes | INCOME TAXES | ||||||||||||
The jurisdictional components of income before taxes consist of the following: | |||||||||||||
December 31, | |||||||||||||
(in thousands) | 2014 | 2013 | 2012 | ||||||||||
Income before income taxes: | |||||||||||||
Domestic | $ | 43,345 | $ | 35,146 | $ | 29,390 | |||||||
Foreign | 17,260 | 16,242 | 14,056 | ||||||||||
$ | 60,605 | $ | 51,388 | $ | 43,446 | ||||||||
The components of income tax expense (benefit) consist of the following: | |||||||||||||
December 31, | |||||||||||||
(in thousands) | 2014 | 2013 | 2012 | ||||||||||
Current: | |||||||||||||
Domestic | $ | 13,495 | $ | 10,605 | $ | 9,273 | |||||||
Foreign | 3,382 | 3,200 | 4,919 | ||||||||||
State | 2,685 | 2,366 | 756 | ||||||||||
19,562 | 16,171 | 14,948 | |||||||||||
Deferred: | |||||||||||||
Domestic | (600 | ) | (1,074 | ) | (192 | ) | |||||||
Foreign | 540 | 249 | (363 | ) | |||||||||
State | (48 | ) | (52 | ) | 150 | ||||||||
(108 | ) | (877 | ) | (405 | ) | ||||||||
Total income taxes | $ | 19,454 | $ | 15,294 | $ | 14,543 | |||||||
The difference between income tax expense (benefit) for financial statement purposes and the amount of income tax expense computed by applying the domestic statutory income tax rate of 35% to income before income taxes consist of the following: | |||||||||||||
December 31, | |||||||||||||
(in thousands) | 2014 | 2013 | 2012 | ||||||||||
Domestic statutory rate at 35% | $ | 21,212 | $ | 17,985 | $ | 15,206 | |||||||
Increase (reduction) from: | |||||||||||||
Jurisdictional rate differences | (2,119 | ) | (1,959 | ) | (1,477 | ) | |||||||
Goodwill impairment | — | — | 157 | ||||||||||
Valuation allowance | 353 | (114 | ) | 825 | |||||||||
Stock based compensation | 199 | 136 | 214 | ||||||||||
U.S. state taxes | 1,649 | 1,496 | 589 | ||||||||||
Domestic production deduction | (1,321 | ) | (1,162 | ) | (948 | ) | |||||||
R&E credit | (614 | ) | (856 | ) | (130 | ) | |||||||
Other, net | 95 | (232 | ) | 107 | |||||||||
Provision for income taxes | $ | 19,454 | $ | 15,294 | $ | 14,543 | |||||||
Effective tax rate | 32 | % | 30 | % | 33 | % | |||||||
Deferred income taxes arise from temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. The components of the Company’s deferred income tax assets and liabilities consist of the following: | |||||||||||||
December 31, | |||||||||||||
(in thousands) | 2014 | 2013 | |||||||||||
Deferred income tax assets: | |||||||||||||
Inventory basis difference | $ | 1,051 | $ | 1,576 | |||||||||
Accounts receivable reserve | 394 | 201 | |||||||||||
Stock based compensation | 1,284 | 904 | |||||||||||
Pension liability | 3,018 | 1,604 | |||||||||||
Employee benefit accrual | 1,448 | 601 | |||||||||||
Product liability and warranty reserves | 1,480 | 1,417 | |||||||||||
Expenses not currently deductible for tax purposes | 410 | 1,064 | |||||||||||
Foreign net operating loss | 1,379 | 2,954 | |||||||||||
State net operating loss | 10 | 76 | |||||||||||
Other | — | 34 | |||||||||||
Total deferred income tax assets | $ | 10,474 | $ | 10,431 | |||||||||
Less: Valuation allowance | (1,064 | ) | (711 | ) | |||||||||
Net deferred income tax assets | $ | 9,410 | $ | 9,720 | |||||||||
Deferred income tax liabilities: | |||||||||||||
Depreciation | (2,786 | ) | (3,068 | ) | |||||||||
Intangible assets | (2,144 | ) | (1,277 | ) | |||||||||
Deferred revenue | 38 | (66 | ) | ||||||||||
Expenses not currently deductible for tax purposes | (356 | ) | (461 | ) | |||||||||
Total deferred income tax liabilities | $ | (5,248 | ) | $ | (4,872 | ) | |||||||
Net deferred income tax assets | $ | 4,162 | $ | 4,848 | |||||||||
As of December 31, 2014, the Company had foreign deferred tax assets consisting of foreign net operating losses and other tax benefits available to reduce future taxable income in a foreign jurisdiction. These foreign jurisdictions' net operating loss (NOL) carryforwards are in the approximate amount of $4.6 million with an unlimited carryforward period. The Company also has U.S. state net operating loss carryforwards in the amount of $27,000 which will expire between 2015 to 2028. | |||||||||||||
The company recorded a valuation allowance as of December 31, 2014 and 2013 due to uncertainties related to the ability to utilize some of the deferred income tax assets, primarily consisting of certain U.S. state NOLs and income tax credits, and international NOLs, before they expire. The valuation allowance is based on estimates of taxable income in the various jurisdictions in which we operate and the period over which deferred income tax assets will be recoverable. The realization of net deferred income tax assets recorded as of December 31, 2014 is primarily dependent upon the ability to generate future taxable income in certain U.S. states and international jurisdictions. | |||||||||||||
Deferred income taxes have not been provided on the future tax consequences attributable to differences between the financial statements carrying amounts of existing assets and liabilities and the respective tax bases of the Company’s foreign subsidiaries, based on the determination that such differences are essentially permanent in duration in that the earnings of the subsidiaries are expected to be indefinitely reinvested in foreign operations. As of December 31, 2014, the cumulative undistributed earnings of these subsidiaries approximated $151,868,000. If these earnings were not considered indefinitely reinvested, deferred income taxes would have been recorded after the consideration of foreign tax credits. At this time, it is not practicable to estimate the amount of additional income taxes that might be payable on those earnings, if distributed. | |||||||||||||
The Company adopted the provisions of FASB ASC Section 740-10-25 (formerly FASB Interpretation No. 48, “Accounting for Uncertainty in Income Taxes”) on January 1, 2007. Unrecognized tax benefits in the amount of | |||||||||||||
$388,000 and $146,000 for 2014 and 2013, respectively, are included in other noncurrent liabilities on the balance sheet. The unrecognized tax benefits, if recognized, would favorably impact our effective tax rate in a future period. We do not expect our unrecognized tax benefits disclosed above to change significantly over the next 12 months. | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Balance as of beginning of year | $ | 146,000 | $ | 257,000 | |||||||||
Additions for tax positions related to the current year | 63,000 | 56,000 | |||||||||||
Additions for tax positions related to prior years | 262,000 | 27,000 | |||||||||||
Reduction due to lapse of statute of limitations | (83,000 | ) | (194,000 | ) | |||||||||
Balance as of end of year | $ | 388,000 | $ | 146,000 | |||||||||
The Company's policy is to include interest and penalty expense related to income taxes as interest and other expense, respectively. As of December 31, 2014, no interest or penalties has been accrued. The Company’s open tax years for its federal and state income tax returns are for the tax years ended 2010 through 2014. The Company's open tax years for its foreign income tax returns are for the tax years ended 2010 through 2014. |
Common_Stock
Common Stock | 12 Months Ended |
Dec. 31, 2014 | |
Equity [Abstract] | |
Common Stock | COMMON STOCK |
The Company was authorized by its Board of Directors in 1997 to repurchase up to 1,000,000 shares of the Company’s common stock to be funded through working capital and credit facility borrowings. No shares were repurchased in 2014 or 2013 under this authorization. The authorization to repurchase up to 1,000,000 shares remains available less 42,600 shares, previously purchased. | |
On September 24, 2014, the Company was authorized by its Board of Directors to enter into a Share Repurchase Agreement with Capital Southwest Corporation and Capital Southwest Venture Corporation (“Capital Southwest”). Pursuant to the Repurchase Agreement, the Company repurchased 849,690 shares of the Company’s common stock owned by Capital Southwest at a purchase price of $40.255 per share . The closing price of the Company’s common stock on the New York Stock Exchange on September 24, 2014 was $41.50 per share. The Company financed the repurchase through borrowings under its revolving credit facility. The Company completed the transaction on September 25, 2014 and subsequently retired all 849,690 shares. In November 2014, the Company successfully completed a public offering of our shares on behalf of Capital Southwest Corporation. | |
On January 2, 2015, the Board of Directors of the Company declared a quarterly dividend of $0.08 per share which was paid on January 30, 2015 to holders of record as of January 16, 2015. |
Stock_Options
Stock Options | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||||
Stock Options | STOCK OPTIONS | |||||||||||||||
Incentive Options | ||||||||||||||||
On May 3, 2005, the stockholders of the Company approved the 2005 Incentive Stock Option Plan (“2005 ISO Plan”) and the Company reserved 500,000 shares of common stock for options to be issued under the 2005 ISO Plan . During the years ended December 31, 2014, 2013 and 2012, options to purchase 48,250 shares, 49,000 shares and 61,000 shares, respectively, were granted under this plan. Each option becomes vested and exercisable for up to 20% of the total optioned shares one year following the grant of the option and for an additional 20% of the total optioned shares after each succeeding year until the option is fully exercisable at the end of the fifth year. | ||||||||||||||||
Following is a summary of activity in the Incentive Stock Option Plans for the periods indicated: | ||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
Shares | Exercise | Shares | Exercise | Shares | Exercise | |||||||||||
Price* | Price* | Price* | ||||||||||||||
Options outstanding at beginning of year | 292,350 | $ | 26.68 | 330,730 | $ | 21.82 | 377,480 | $ | 19.27 | |||||||
Granted | 48,250 | 52.67 | 49,000 | 42.7 | 61,000 | 32.76 | ||||||||||
Exercised | (27,700 | ) | 24.33 | (81,880 | ) | 16.77 | (99,650 | ) | 19.26 | |||||||
Canceled | (11,100 | ) | 35.42 | (5,500 | ) | 24.24 | (8,100 | ) | 17.2 | |||||||
Options outstanding at end of year | 301,800 | 30.73 | 292,350 | 26.68 | 330,730 | 21.82 | ||||||||||
Options exercisable at end of year | 172,450 | $ | 22.3 | 154,950 | $ | 21.57 | 192,830 | $ | 19.48 | |||||||
Options available for grant at end of year | 28,950 | 66,100 | 109,600 | |||||||||||||
*Weighted Averages | ||||||||||||||||
Options outstanding and exercisable at December 31, 2014 were as follows: | ||||||||||||||||
Qualified Stock Options | Options Outstanding | Options Exercisable | ||||||||||||||
Remaining | Exercise | |||||||||||||||
Contractual | Price* | Exercise | ||||||||||||||
Shares | Life (yrs)* | Shares | Price* | |||||||||||||
Range of Exercise Price | ||||||||||||||||
$11.45 - $19.79 | 56,550 | 3.93 | $ | 12.33 | 56,550 | $ | 12.33 | |||||||||
$22.39 - $42.70 | 197,500 | 5.74 | $ | 30.7 | 115,900 | $ | 27.16 | |||||||||
$49.44 - $53.51 | 47,750 | 9.42 | $ | 52.66 | — | $ | — | |||||||||
Total | 301,800 | 172,450 | ||||||||||||||
*Weighted Averages | ||||||||||||||||
The weighted-average grant-date fair values of options granted during 2014, 2013, and 2012 were $27.23, $20.56 and $14.76, respectively. As of December 31, 2014, there was $1,673,000 of total unrecognized compensation cost related to non-vested share-based compensation arrangements granted under the plans. That cost is expected to be recognized over a period of five years. | ||||||||||||||||
Non-Qualified Options | ||||||||||||||||
On May 3, 2001, the stockholders of the Company approved the First Amended and Restated 1999 Non-Qualified Stock Option Plan ("FAR 1999 NQSO Plan") to add non-employee directors as eligible persons to receive grants of stock options. The Company reserved 400,000 shares of common stock for options to be issued under this plan. Options become vested and exercisable for up to 20% of the total optioned shares one year following the grant of the option and for an additional 20% of the total optioned shares after each succeeding year until the option is fully exercisable at the end of the fifth year. No further option grants can be made under this plan. | ||||||||||||||||
On May 7, 2009, the stockholders of the Company approved the 2009 Equity Incentive Plan and the Company reserved 400,000 shares of common stock for this plan. Options become vested and exercisable for up to 20% of the total optioned shares one year following the grant of the option and for an additional 20% of the total optioned shares after each succeeding year until the option is fully exercisable at the end of the fifth year. | ||||||||||||||||
Following is a summary of activity in the Non-Qualified Stock Option Plans for the periods indicated: | ||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
Shares | Exercise | Shares | Exercise | Shares | Exercise | |||||||||||
Price* | Price* | Price* | ||||||||||||||
Options outstanding at beginning of year | 114,700 | $ | 24.87 | 89,700 | $ | 19.91 | 112,800 | $ | 18.62 | |||||||
Granted | 29,000 | 53.51 | 25,000 | 42.7 | — | — | ||||||||||
Exercised | (11,600 | ) | 23.29 | — | — | (23,100 | ) | 13.62 | ||||||||
Cancelled | — | — | — | — | — | — | ||||||||||
Options outstanding at end of year | 132,100 | 31.3 | 114,700 | 24.87 | 89,700 | 19.91 | ||||||||||
Options exercisable at end of year | 71,100 | $ | 19.85 | 57,900 | $ | 19.89 | 38,100 | $ | 21.91 | |||||||
Options available for grant at end of year | 258,526 | 293,526 | 322,750 | |||||||||||||
*Weighted Averages | ||||||||||||||||
Options outstanding and exercisable as of December 31, 2014 were as follows: | ||||||||||||||||
Non-Qualified Stock Options | Options Outstanding | Options Exercisable | ||||||||||||||
Remaining | ||||||||||||||||
Contractual | Exercise | Exercise | ||||||||||||||
Shares | Life (yrs)* | Price* | Shares | Price* | ||||||||||||
Range of Exercise Price | ||||||||||||||||
$11.45 | 35,600 | 4.36 | $ | 11.45 | 35,600 | $ | 11.45 | |||||||||
$22.39 - $42.70 | 67,500 | 6.33 | 32.23 | 35,500 | 28.28 | |||||||||||
$53.51 | 29,000 | 9.37 | $ | 53.51 | — | $ | — | |||||||||
Total | 132,100 | 71,100 | ||||||||||||||
*Weighted Averages | ||||||||||||||||
The weighted-average grant-date fair values of options granted during 2014 and 2013 were $27.72 and $20.56, respectively. There were no options granted in 2012. As of December 31, 2014, there was $115,000 of total unrecognized compensation cost related to non-vested share-based compensation arrangements granted under the plans. That cost is expected to be recognized over a period of five years. | ||||||||||||||||
During 2014, 2013 and 2012, 11,600, 0, and 23,100 non-qualified options were exercised, respectively, $270,000, $0, and $315,000 of cash receipts were received, respectively, and tax deductions of $262,000, $0, and $284,000 were realized, respectively, for the tax deductions from option exercises. | ||||||||||||||||
Restricted Stock Units | ||||||||||||||||
Following is a summary of activity in the Restricted Stock Units for the periods indicated: | ||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
Shares | Exercise | Shares | Exercise | Shares | Exercise | |||||||||||
Price* | Price* | Price* | ||||||||||||||
Options outstanding at beginning of year | 10,724 | $ | 32.49 | 11,375 | $ | 24.24 | 19,750 | $ | 22.96 | |||||||
Granted | 6,000 | 53.51 | 4,224 | 42.7 | — | — | ||||||||||
Exercised | (4,681 | ) | 29.56 | (4,875 | ) | 22.07 | (6,125 | ) | 21.13 | |||||||
Cancelled | — | — | — | — | (2,250 | ) | 21.45 | |||||||||
Options outstanding at end of year | 12,043 | 44.1 | 10,724 | 32.49 | 11,375 | 24.24 | ||||||||||
*Weighted Averages | ||||||||||||||||
Restricted stock units vest 25% after one year following the award date and for an additional 25% of total awarded shares each succeeding year until fully vested. The weighted-average remaining contractual life in years for 2014, 2013, and 2012 were 2.39, 2.09 and 2.65, respectively. As of December 31, 2014, there was $121,000 of total unrecognized compensation cost related to non-vested share-based compensation arrangements granted under the plans. That cost is expected to be recognized over a period of four years. |
Retirement_Benefit_Plans
Retirement Benefit Plans | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ||||||||||||||||||||
Retirement Benefit Plans | RETIREMENT BENEFIT PLANS | |||||||||||||||||||
Defined Benefit Plans | ||||||||||||||||||||
In connection with the February 3, 2006 purchase of all the net assets of the Gradall excavator business, the Company assumed sponsorship of two Gradall non-contributory defined benefit pension plans, both of which are frozen with respect to both future benefit accruals and future new entrants. | ||||||||||||||||||||
The Gradall Company Hourly Employees’ Pension Plan covers approximately 331 former employees and 125 current employees who (i) were formerly employed by JLG Industries, Inc., (ii) were covered by a collective bargaining agreement and (iii) first participated in the plan before April 6, 1997. An amendment ceasing all future benefit accruals was effective April 6, 1997. | ||||||||||||||||||||
The Gradall Company Employees’ Retirement Plan covers approximately 238 former employees and 83 current employees who (i) were formerly employed by JLG Industries, Inc., (ii) were not covered by a collective bargaining agreement and (iii) first participated in the plan before December 31, 2004. An amendment ceasing future benefit accruals for certain participants was effective December 31, 2004. A second amendment discontinued all future benefit accruals for all participants effective April 24, 2006. | ||||||||||||||||||||
The following tables set forth the change in plan assets, change in projected benefit obligation, rate assumptions and components of net periodic benefit cost as of December 31 with respect to these plans. The measurement dates of the assets and liabilities of both plans were December 31 of the respective years presented. | ||||||||||||||||||||
Year Ended December 31, 2014 | ||||||||||||||||||||
(in thousands) | Hourly | Employees’ | Total | |||||||||||||||||
Employees’ | Retirement | |||||||||||||||||||
Pension Plan | Plan | |||||||||||||||||||
Change in projected benefit obligation | ||||||||||||||||||||
Benefit obligation at beginning of year | $ | 9,477 | $ | 18,335 | $ | 27,812 | ||||||||||||||
Service cost | 8 | 4 | 12 | |||||||||||||||||
Interest cost | 422 | 852 | 1,274 | |||||||||||||||||
Liability actuarial loss (gain) | 1,189 | 3,163 | 4,352 | |||||||||||||||||
Benefits paid | (640 | ) | (759 | ) | (1,399 | ) | ||||||||||||||
Benefit obligation at end of year | 10,456 | 21,595 | 32,051 | |||||||||||||||||
Change in fair value of plan assets | ||||||||||||||||||||
Fair value of plan assets at beginning of year | 8,873 | 16,401 | 25,274 | |||||||||||||||||
Return on plan assets | 442 | 820 | 1,262 | |||||||||||||||||
Employer contributions | 548 | 652 | 1,200 | |||||||||||||||||
Benefits paid | (640 | ) | (759 | ) | (1,399 | ) | ||||||||||||||
Fair value of plan assets at end of year | 9,223 | 17,114 | 26,337 | |||||||||||||||||
Underfunded status – December 31, 2014 | $ | (1,233 | ) | $ | (4,481 | ) | $ | (5,714 | ) | |||||||||||
Year Ended December 31, 2013 | ||||||||||||||||||||
(in thousands) | Hourly | Employees’ | Total | |||||||||||||||||
Employees’ | Retirement | |||||||||||||||||||
Pension Plan | Plan | |||||||||||||||||||
Change in projected benefit obligation | ||||||||||||||||||||
Benefit obligation at beginning of year | $ | 10,786 | $ | 20,923 | $ | 31,709 | ||||||||||||||
Service cost | 11 | 5 | 16 | |||||||||||||||||
Interest cost | 371 | 760 | 1,131 | |||||||||||||||||
Liability actuarial (gain) loss | (1,060 | ) | (2,620 | ) | (3,680 | ) | ||||||||||||||
Benefits paid | (631 | ) | (733 | ) | (1,364 | ) | ||||||||||||||
Benefit obligation at end of year | 9,477 | 18,335 | 27,812 | |||||||||||||||||
Change in fair value of plan assets | ||||||||||||||||||||
Fair value of plan assets at beginning of year | 7,690 | 14,148 | 21,838 | |||||||||||||||||
Return on plan assets | 1,136 | 2,090 | 3,226 | |||||||||||||||||
Employer contributions | 678 | 896 | 1,574 | |||||||||||||||||
Benefits paid | (631 | ) | (733 | ) | (1,364 | ) | ||||||||||||||
Fair value of plan assets at end of year | 8,873 | 16,401 | 25,274 | |||||||||||||||||
Underfunded status – December 31, 2013 | $ | (604 | ) | $ | (1,934 | ) | $ | (2,538 | ) | |||||||||||
The Company recognizes the overfunded or underfunded status (i.e., the difference between the fair value of plan assets and the projected benefit obligations) of defined benefit postretirement plans as an asset or liability in its consolidated balance sheet and recognizes changes in the funded status in the year in which the changes occur. The Company measures the funded status of a plan as of the date of the year-end consolidated balance sheet. | ||||||||||||||||||||
The underfunded status of the plans of $5,714,000 and $2,538,000 as of December 31, 2014 and 2013, respectively, is recognized in the accompanying consolidated balance sheets as long-term accrued pension liability because plan assets are less than the value of benefit obligations expected to be paid. | ||||||||||||||||||||
The accumulated benefit obligation for our pension plans represents the actuarial present value of benefits based on employee service and compensation as of a certain date and does not include an assumption about future compensation levels. | ||||||||||||||||||||
In determining the projected benefit obligation and the net pension cost, we used the following significant weighted-average assumptions: | ||||||||||||||||||||
Assumptions used to determine benefit obligations at December 31: | ||||||||||||||||||||
Hourly Employees’ | Employees’ | |||||||||||||||||||
Pension Plan | Retirement Plan | |||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||
Discount rate | 4.00% | 4.60% | 4.10% | 4.75% | ||||||||||||||||
Composite rate of compensation increase | N/A | N/A | N/A | N/A | ||||||||||||||||
Assumptions used to determine net periodic benefit cost for the years ended December 31: | ||||||||||||||||||||
Hourly Employees’ | Employees’ | |||||||||||||||||||
Pension Plan | Retirement Plan | |||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||
Discount rate | 4.60% | 3.55% | 4.75% | 3.70% | ||||||||||||||||
Long-term rate of return on plan assets | 7.25% | 7.25% | 7.25% | 7.25% | ||||||||||||||||
Composite rate of compensation increase | N/A | N/A | N/A | N/A | ||||||||||||||||
The Company employs a building block approach in determining the expected long-term rate of return on plan assets. Historical markets are studied and long-term historical relationships between equities and fixed income are preserved consistent with the widely accepted capital market principle that assets with higher volatility generate a greater return over the long run. Current market factors such as inflation and interest rates are evaluated before long-term market assumptions are determined. The long-term portfolio return is established via a building block approach with proper consideration of diversification and rebalancing. Peer data and historical returns are reviewed to check for reasonability and appropriateness. | ||||||||||||||||||||
The following tables present the components of net periodic benefit cost (gains are denoted with parentheses and losses are not): | ||||||||||||||||||||
Year Ended December 31, 2014 | ||||||||||||||||||||
Hourly Employees’ | Employees’ | Total | ||||||||||||||||||
(in thousands) | Pension Plan | Retirement Plan | ||||||||||||||||||
Service cost | $ | 8 | $ | 4 | $ | 12 | ||||||||||||||
Interest cost | 422 | 852 | 1,274 | |||||||||||||||||
Expected return on plan assets | (637 | ) | (1,180 | ) | (1,817 | ) | ||||||||||||||
Amortization of net loss (gain) | 72 | 60 | 132 | |||||||||||||||||
Net periodic benefit cost | $ | (135 | ) | $ | (264 | ) | $ | (399 | ) | |||||||||||
Year Ended December 31, 2013 | ||||||||||||||||||||
Hourly Employees’ | Employees’ | Total | ||||||||||||||||||
(in thousands) | Pension Plan | Retirement Plan | ||||||||||||||||||
Service cost | $ | 11 | $ | 5 | $ | 16 | ||||||||||||||
Interest cost | 371 | 760 | 1,131 | |||||||||||||||||
Expected return on plan assets | (549 | ) | (1,018 | ) | (1,567 | ) | ||||||||||||||
Amortization of net loss (gain) | 285 | 418 | 703 | |||||||||||||||||
Net periodic benefit cost | $ | 118 | $ | 165 | $ | 283 | ||||||||||||||
The Company estimates that $649,000 of unrecognized actuarial expense will be amortized from accumulated other comprehensive income (loss) into net periodic benefit costs during 2015. | ||||||||||||||||||||
The Company employs a total return investment approach whereby a mix of equities and fixed income investments are used to maximize the long-term return of plan assets for a prudent level of risk. Risk tolerance is established through careful consideration of plan liabilities, plan funded status, and corporate financial condition. The investment portfolio contains a diversified blend of equity and fixed income investments. Furthermore, equity investments are diversified across U.S. and non-U.S. stocks, as well as growth, value, and small and large capitalizations. Other assets such as real estate, private equity, and hedge funds are used judiciously to enhance long-term returns while improving portfolio diversification. Derivatives may be used to gain market exposure in an efficient and timely manner; however, derivatives may not be used to leverage the portfolio beyond the market value of the underlying investments. Investment risk is measured and monitored on an ongoing basis through quarterly investment portfolio reviews, annual liability measurements, and periodic asset/liability studies. Our current asset allocations are consistent with our targeted allocations. | ||||||||||||||||||||
The pension plans' weighted-average asset allocations as a percentage of plan assets at December 31 are as follows: | ||||||||||||||||||||
Hourly Employees’ | Employees’ Retirement | |||||||||||||||||||
Pension Plan | Plan | |||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||
Equity securities | 53% | 55% | 55% | 55% | ||||||||||||||||
Debt securities | 38% | 38% | 38% | 38% | ||||||||||||||||
Short-term investments | 5% | 2% | 3% | 2% | ||||||||||||||||
Other | 4% | 5% | 4% | 5% | ||||||||||||||||
Total | 100% | 100% | 100% | 100% | ||||||||||||||||
As of December 31, 2014, we used the following valuation techniques to measure fair value for assets. There were no changes to these methodologies during 2014: Level 1 - Assets were valued using the closing price reported in the active market in which the individual security was traded. Level 2 - Assets were valued using quoted prices in markets that are not active, broker dealer quotations, net asset value of shares held by the plans, and other methods by which all significant input was observable at the measurement date. Level 3 - Assets were valued using valuation reports from the respective institutions at the measurement date. The following table presents the hierarchy levels for our postretirement benefit plan investments as of December 31: | ||||||||||||||||||||
December 31, 2014 | Quoted | |||||||||||||||||||
Prices in Active | Significant | Significant | ||||||||||||||||||
Markets for | Other | Unobservable | ||||||||||||||||||
Identical Assets | Observable | Inputs | ||||||||||||||||||
(in thousands) | (Level 1) | Inputs | (Level 3) | |||||||||||||||||
(Level 2) | ||||||||||||||||||||
Mutual Funds: | ||||||||||||||||||||
Mid Cap | $ | 1,642 | $ | 1,642 | $ | — | $ | — | ||||||||||||
Large Cap | 5,162 | 5,162 | ||||||||||||||||||
International | 2,985 | 2,985 | ||||||||||||||||||
Common/Collective: | ||||||||||||||||||||
Liability Driven Solution | 3,702 | 3,702 | ||||||||||||||||||
Wells Fargo International Equity Index Fund | 1,098 | 1,098 | ||||||||||||||||||
Wells Fargo Core Bond | 1,810 | 1,810 | ||||||||||||||||||
Wells Fargo/Causeway | 1,118 | 1,118 | ||||||||||||||||||
Wells Fargo Large Cap Growth Index Fund | 1,473 | 1,473 | ||||||||||||||||||
Wells Fargo Large Cap Value Index Fund | 1,476 | 1,476 | ||||||||||||||||||
Wells Fargo Multi-Manager Small Cap | 1,783 | 1,783 | ||||||||||||||||||
Wells Fargo Russell 2000 Index Fund | 860 | 860 | ||||||||||||||||||
Wells Fargo S&P Mid Cap Index Fund | 990 | 990 | ||||||||||||||||||
T. Rowe Price Equity Income | 1,310 | 1,310 | ||||||||||||||||||
Cash & Short-term Investments | 928 | 928 | ||||||||||||||||||
Total | $ | 26,337 | $ | 10,717 | $ | 15,620 | $ | — | ||||||||||||
December 31, 2013 | Quoted | |||||||||||||||||||
Prices in Active | Significant | |||||||||||||||||||
Markets for | Other | Significant | ||||||||||||||||||
Identical Assets | Observable | Unobservable | ||||||||||||||||||
(in thousands) | (Level 1) | Inputs | Inputs | |||||||||||||||||
(Level 2) | (Level 3) | |||||||||||||||||||
Mutual Funds: | ||||||||||||||||||||
Mid Cap | $ | 1,577 | $ | 1,577 | $ | — | $ | — | ||||||||||||
Large Cap | 6,826 | 6,826 | ||||||||||||||||||
International | 2,531 | 2,531 | ||||||||||||||||||
Common/Collective: | ||||||||||||||||||||
Wells Fargo Liability Driven Solution Fund | 3,521 | 3,521 | ||||||||||||||||||
Wells Fargo International Equity Index Fund | 1,286 | 1,286 | ||||||||||||||||||
Wells Fargo Thornburg International | 1,273 | 1,273 | ||||||||||||||||||
Wells Fargo Large Cap Growth Index Fund | 1,423 | 1,423 | ||||||||||||||||||
Wells Fargo Large Cap Value Index Fund | 1,427 | 1,427 | ||||||||||||||||||
Wells Fargo Multi-Manager Small Cap | 1,683 | 1,683 | ||||||||||||||||||
Wells Fargo Russell 2000 Index Fund | 841 | 841 | ||||||||||||||||||
Wells Fargo S&P Mid Cap Index Fund | 950 | 950 | ||||||||||||||||||
T Rowe Price Equity Income | 1,424 | 1,424 | ||||||||||||||||||
Cash & Short-term Investments | 512 | 512 | ||||||||||||||||||
Total | $ | 25,274 | $ | 11,446 | $ | 13,828 | $ | — | ||||||||||||
Our interests in the common collective trust investments are managed by one custodian. Consistent with our investment policy, the custodian has invested the assets across a widely diversified portfolio of U.S. and international equity and fixed income securities. Fair values of each security within the collective trust as of December 31, 2014 were obtained from the custodian and are based on quoted market prices of individual investments; however, since the fund itself does not have immediate liquidity or a quoted market price, these assets are considered Level 2. | ||||||||||||||||||||
The common collective funds noted in the above table have estimated fair value using the net asset value per share of investments. Investments can be redeemed immediately at the current net asset value per share based on the fair value of the underlying assets. Redemption frequency is daily. The categories contain investments in equity securities of smaller growing companies, medium-sized U.S. companies, large value-oriented and growth-oriented companies, and foreign companies traded on international markets. | ||||||||||||||||||||
Expected benefit payments are estimated using the same assumptions used in determining our benefit obligation as of December 31, 2014. The following table illustrates the estimated pension benefit payments which reflect expected future service, as appropriate, that are projected to be paid: | ||||||||||||||||||||
Hourly Employees’ | Employees’ | |||||||||||||||||||
(in thousands) | Pension Plan | Retirement Plan | Total | |||||||||||||||||
2015 | $ | 639 | $ | 887 | $ | 1,526 | ||||||||||||||
2016 | 641 | 933 | 1,574 | |||||||||||||||||
2017 | 648 | 1,026 | 1,674 | |||||||||||||||||
2018 | 656 | 1,120 | 1,776 | |||||||||||||||||
2019 | 665 | 1,153 | 1,818 | |||||||||||||||||
Years 2020 through 2024 | $ | 3,269 | $ | 6,368 | $ | 9,637 | ||||||||||||||
Supplemental Retirement Plan | ||||||||||||||||||||
The Board of Directors of the Company adopted the Alamo Group Inc. Supplemental Executive Retirement Plan (the “SERP”), effective as of January 3, 2011. The SERP will benefit certain key management or other highly compensated employees of the Company and/or certain subsidiaries who are selected by the Compensation Committee and approved by the Board to participate. | ||||||||||||||||||||
The SERP is intended to provide a benefit from the Company upon retirement, death or disability, or a change in control of the Company. Accordingly, the SERP obligates the Company to pay to a participant a Retirement Benefit (as defined in the SERP) upon the occurrence of certain payment events to the extent a participant has a vested right thereto. A participant’s right to his or her Retirement Benefit becomes vested in the Company’s contributions upon 10 years of Credited Service (as defined in the SERP) or a change in control of the Company. The Retirement Benefit is based on 20% of the final three-year average salary of each participant on or after his or her normal retirement age (65 years of age). In the event of the participant’s death or a change in control, the participant’s vested retirement benefit will be paid in a lump sum to the participant or his or her estate, as applicable, within 90 days after the participant’s death or a change in control, as applicable. In the event the participant is entitled to a benefit from the SERP due to disability, retirement or other termination of employment, the benefit will be paid in monthly installments over a period of fifteen years. | ||||||||||||||||||||
The Company records amounts relating to the SERP based on calculations that incorporate various actuarial and other assumptions, including discount rates, rate of compensation increases, retirement dates and life expectancies. The net periodic costs are recognized as employees render the services necessary to earn the SERP benefits. | ||||||||||||||||||||
In connection with the initiation of the SERP, the Company had an unfunded long-term liability of $1,964,301, a deferred tax asset of $746,000, and $1,218,301 in accumulated other comprehensive income. The $1,964,301 includes prior service cost which will be amortized over the average remaining service periods of the employees. The prior service cost is included as a component of net periodic pension cost. | ||||||||||||||||||||
The change in the Projected Benefit Obligation (PBO) as of December 31, 2014 and 2013, is shown below, in thousands: | ||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||
(in thousands) | 2014 | 2013 | ||||||||||||||||||
Benefit obligation at January 1, | $ | 3,021 | $ | 3,057 | ||||||||||||||||
Service cost | 152 | 114 | ||||||||||||||||||
Interest cost | 138 | 102 | ||||||||||||||||||
Liability actuarial loss (gain) | 421 | (252 | ) | |||||||||||||||||
Plan amendments | — | — | ||||||||||||||||||
Benefit obligation at December 31, | $ | 3,732 | $ | 3,021 | ||||||||||||||||
The components of net periodic pension expense were as follows, in thousands: | ||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||
(in thousands) | 2014 | 2013 | ||||||||||||||||||
Service cost | $ | 152 | $ | 114 | ||||||||||||||||
Interest cost | 138 | 102 | ||||||||||||||||||
Amortization of prior service cost | 270 | 327 | ||||||||||||||||||
Net periodic benefit cost | $ | 560 | $ | 543 | ||||||||||||||||
The Company estimates that $342,000 of unrecognized actuarial expense will be amortized from accumulated other comprehensive income into net periodic benefit costs during 2015. | ||||||||||||||||||||
In determining the projected benefit obligation and the net pension cost, we used the following significant weighted-average assumptions: | ||||||||||||||||||||
Assumptions used to determine benefit obligations at December 31: | ||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||
Discount rate | 3.70% | 4.60% | ||||||||||||||||||
Composite rate of compensation increase | 3.00% | 3.00% | ||||||||||||||||||
Assumptions used to determine net periodic benefit cost for the years ended December 31: | ||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||
Discount rate | 4.60% | 3.37% | ||||||||||||||||||
Composite rate of compensation increase | 3.00% | 3.00% | ||||||||||||||||||
Long-term rate of return on plan assets | N/A | N/A | ||||||||||||||||||
Future estimated benefits expected to be paid from the plan over the next ten years as follows in thousands: | ||||||||||||||||||||
2015 | $ | 62 | ||||||||||||||||||
2016 | 110 | |||||||||||||||||||
2017 | 149 | |||||||||||||||||||
2018 | 251 | |||||||||||||||||||
2019 | 252 | |||||||||||||||||||
Years 2020 through 2024 | $ | 1,411 | ||||||||||||||||||
Defined Contribution Plans | ||||||||||||||||||||
The Company has three defined contribution plans, The Gradall Salaried Employees’ Savings and Investment Plan (“Salary Plan”), The Gradall Hourly Employees’ Savings and Investment Plan (“Hourly Plan”) and The International Association of Machinist and Aerospace Workers Retirement Plan (“IAM Plan”). The Company contributed $378,000 and $422,000 to the IAM Plan for the plan years ended December 31, 2014 and 2013, respectively. The Company converted the Salary Plan into its 401(k) retirement and savings plan and put the Hourly Plan into a separate 401(k) retirement and savings plan. | ||||||||||||||||||||
The Company provides a defined contribution 401(k) retirement and savings plan for eligible U.S. employees. Company matching contributions are based on a percentage of employee contributions. Company contributions to the plan during 2014, 2013 and 2012 were $1,466,000, $1,331,000, and $1,678,000, respectively. | ||||||||||||||||||||
Three of the Company’s international subsidiaries also participate in a defined contribution and savings plan covering eligible employees. The Company’s international subsidiaries contribute between 3% and 10% of the participant’s salary up to a specific limit. Total contributions made to the above plans were $806,000, $697,000, and $696,000 for the years ended December 31, 2014, 2013 and 2012, respectively. |
Segment_Reporting
Segment Reporting | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Segment Reporting [Abstract] | ||||||||||||
Segment Reporting | SEGMENT REPORTING | |||||||||||
The Company reports three business segments: North American Industrial, North American Agricultural and European. The Company’s sales are principally within the United States, United Kingdom, France, Canada and Australia. The Company sells its products primarily through a network of independent dealers and distributors to governmental end-users, related independent contractors, as well as to the agricultural and commercial turf markets. | ||||||||||||
The Company has included a summary of the financial information by reporting segment. The following table presents the revenues and income from operations by reporting segment for the years ended December 31, 2014, 2013 and 2012: | ||||||||||||
December 31, | ||||||||||||
(in thousands) | 2014 | 2013 (1) | 2012 (1) | |||||||||
Net Revenue | ||||||||||||
North American Industrial | $ | 436,018 | $ | 297,857 | $ | 264,504 | ||||||
North American Agricultural | 214,326 | 219,354 | 203,945 | |||||||||
European | 188,711 | 164,879 | 164,582 | |||||||||
Consolidated | $ | 839,055 | $ | 682,090 | $ | 633,031 | ||||||
Income from Operations | ||||||||||||
North American Industrial | $ | 39,377 | $ | 25,743 | $ | 19,313 | ||||||
North American Agricultural | 11,714 | 17,880 | 18,319 | |||||||||
European | 11,573 | 7,114 | 7,717 | |||||||||
Consolidated | $ | 62,664 | $ | 50,737 | $ | 45,349 | ||||||
(1) As adjusted for the immaterial correction. See Note 1. | ||||||||||||
The following table presents the goodwill and total identifiable assets by reporting segment for the years ended December 31, 2014 and 2013: | ||||||||||||
(in thousands) | December 31, 2014 | December 31, 2013 | ||||||||||
Goodwill | ||||||||||||
Industrial | $ | 54,036 | $ | 13,176 | ||||||||
Agricultural | 695 | — | ||||||||||
European | 17,676 | 18,897 | ||||||||||
Consolidated | $ | 72,407 | $ | 32,073 | ||||||||
Total Identifiable Assets | ||||||||||||
Industrial | $ | 363,812 | $ | 161,080 | ||||||||
Agricultural | 113,286 | 123,352 | ||||||||||
European | 152,504 | 154,044 | ||||||||||
Consolidated | $ | 629,602 | $ | 438,476 | ||||||||
INTERNATIONAL OPERATIONS AND GEOGRAPHIC INFORMATION | ||||||||||||
Following is selected financial information on the Company’s international operations which include Europe, Canada and Australia: | ||||||||||||
December 31, | ||||||||||||
(in thousands) | 2014 | 2013 | 2012 | |||||||||
Net sales | $ | 260,874 | $ | 236,839 | $ | 227,568 | ||||||
Income from operations | 15,840 | 14,822 | 14,470 | |||||||||
Income before income taxes | 17,315 | 16,241 | 13,731 | |||||||||
Identifiable assets | $ | 219,036 | $ | 205,317 | $ | 179,263 | ||||||
Following is other selected geographic financial information on the Company’s operations: | ||||||||||||
December 31, | ||||||||||||
(in thousands) | 2014 | 2013 | 2012 | |||||||||
Geographic net sales: | ||||||||||||
United States | $ | 571,817 | $ | 449,119 | $ | 405,761 | ||||||
United Kingdom | 58,976 | 36,892 | 40,735 | |||||||||
France | 93,699 | 97,959 | 92,964 | |||||||||
Canada | 54,087 | 45,212 | 36,366 | |||||||||
Australia | 13,702 | 11,519 | 10,232 | |||||||||
Other | 46,774 | 41,389 | 46,973 | |||||||||
Total net sales | $ | 839,055 | $ | 682,090 | $ | 633,031 | ||||||
Geographic location of long-lived assets: | ||||||||||||
United States | $ | 168,404 | $ | 42,053 | $ | 46,749 | ||||||
United Kingdom | 20,840 | 19,718 | 13,809 | |||||||||
France | 21,728 | 25,751 | 25,166 | |||||||||
Canada | 23,354 | 12,562 | 11,719 | |||||||||
Australia | 1,358 | 768 | 190 | |||||||||
Total long-lived assets | $ | 235,684 | $ | 100,852 | $ | 97,633 | ||||||
Net sales are attributed to countries based on the location of customers. |
International_Operations_and_G
International Operations and Geographic Information | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Segment Reporting [Abstract] | ||||||||||||
International Operations and Geographic Information | SEGMENT REPORTING | |||||||||||
The Company reports three business segments: North American Industrial, North American Agricultural and European. The Company’s sales are principally within the United States, United Kingdom, France, Canada and Australia. The Company sells its products primarily through a network of independent dealers and distributors to governmental end-users, related independent contractors, as well as to the agricultural and commercial turf markets. | ||||||||||||
The Company has included a summary of the financial information by reporting segment. The following table presents the revenues and income from operations by reporting segment for the years ended December 31, 2014, 2013 and 2012: | ||||||||||||
December 31, | ||||||||||||
(in thousands) | 2014 | 2013 (1) | 2012 (1) | |||||||||
Net Revenue | ||||||||||||
North American Industrial | $ | 436,018 | $ | 297,857 | $ | 264,504 | ||||||
North American Agricultural | 214,326 | 219,354 | 203,945 | |||||||||
European | 188,711 | 164,879 | 164,582 | |||||||||
Consolidated | $ | 839,055 | $ | 682,090 | $ | 633,031 | ||||||
Income from Operations | ||||||||||||
North American Industrial | $ | 39,377 | $ | 25,743 | $ | 19,313 | ||||||
North American Agricultural | 11,714 | 17,880 | 18,319 | |||||||||
European | 11,573 | 7,114 | 7,717 | |||||||||
Consolidated | $ | 62,664 | $ | 50,737 | $ | 45,349 | ||||||
(1) As adjusted for the immaterial correction. See Note 1. | ||||||||||||
The following table presents the goodwill and total identifiable assets by reporting segment for the years ended December 31, 2014 and 2013: | ||||||||||||
(in thousands) | December 31, 2014 | December 31, 2013 | ||||||||||
Goodwill | ||||||||||||
Industrial | $ | 54,036 | $ | 13,176 | ||||||||
Agricultural | 695 | — | ||||||||||
European | 17,676 | 18,897 | ||||||||||
Consolidated | $ | 72,407 | $ | 32,073 | ||||||||
Total Identifiable Assets | ||||||||||||
Industrial | $ | 363,812 | $ | 161,080 | ||||||||
Agricultural | 113,286 | 123,352 | ||||||||||
European | 152,504 | 154,044 | ||||||||||
Consolidated | $ | 629,602 | $ | 438,476 | ||||||||
INTERNATIONAL OPERATIONS AND GEOGRAPHIC INFORMATION | ||||||||||||
Following is selected financial information on the Company’s international operations which include Europe, Canada and Australia: | ||||||||||||
December 31, | ||||||||||||
(in thousands) | 2014 | 2013 | 2012 | |||||||||
Net sales | $ | 260,874 | $ | 236,839 | $ | 227,568 | ||||||
Income from operations | 15,840 | 14,822 | 14,470 | |||||||||
Income before income taxes | 17,315 | 16,241 | 13,731 | |||||||||
Identifiable assets | $ | 219,036 | $ | 205,317 | $ | 179,263 | ||||||
Following is other selected geographic financial information on the Company’s operations: | ||||||||||||
December 31, | ||||||||||||
(in thousands) | 2014 | 2013 | 2012 | |||||||||
Geographic net sales: | ||||||||||||
United States | $ | 571,817 | $ | 449,119 | $ | 405,761 | ||||||
United Kingdom | 58,976 | 36,892 | 40,735 | |||||||||
France | 93,699 | 97,959 | 92,964 | |||||||||
Canada | 54,087 | 45,212 | 36,366 | |||||||||
Australia | 13,702 | 11,519 | 10,232 | |||||||||
Other | 46,774 | 41,389 | 46,973 | |||||||||
Total net sales | $ | 839,055 | $ | 682,090 | $ | 633,031 | ||||||
Geographic location of long-lived assets: | ||||||||||||
United States | $ | 168,404 | $ | 42,053 | $ | 46,749 | ||||||
United Kingdom | 20,840 | 19,718 | 13,809 | |||||||||
France | 21,728 | 25,751 | 25,166 | |||||||||
Canada | 23,354 | 12,562 | 11,719 | |||||||||
Australia | 1,358 | 768 | 190 | |||||||||
Total long-lived assets | $ | 235,684 | $ | 100,852 | $ | 97,633 | ||||||
Net sales are attributed to countries based on the location of customers. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES | ||||||||
Leases | |||||||||
The Company leases office space and equipment under various operating leases, which generally are expected to be renewed or replaced by other leases. The Company has certain capitalized leases consisting principally of leases of buildings. As of December 31, 2014, future minimum lease payments under these non-cancelable leases and the present value of the net minimum lease payments for the capitalized leases are: | |||||||||
Operating | Capitalized | ||||||||
(in thousands) | Leases | Leases | |||||||
2015 | $ | 3,471 | $ | 37 | |||||
2016 | 2,680 | 19 | |||||||
2017 | 1,925 | 6 | |||||||
2018 | 1,061 | — | |||||||
2019 | 544 | — | |||||||
Thereafter | 513 | — | |||||||
Total minimum lease payments | $ | 10,194 | $ | 62 | |||||
Less amount representing interest | 3 | ||||||||
Present value of net minimum lease payments | $ | 59 | |||||||
Less current portion | 35 | ||||||||
Long-term portion | $ | 24 | |||||||
Rental expense for operating leases was $3,666,000 for 2014, $2,293,000 for 2013, and $2,088,000 for 2012. | |||||||||
Purchase obligations of $98,238,000 represent an estimate of goods and services to be purchased under outstanding purchase orders not reflected on the Company’s balance sheet. New purchase obligations should be received and paid for during the current fiscal year. | |||||||||
Other | |||||||||
Like other manufacturers, the Company is subject to a broad range of federal, state, local and foreign laws and requirements, including those concerning air emissions, discharges into waterways, and the generation, handling, storage, transportation, treatment and disposal of hazardous substances and waste materials, as well as the remediation of contamination associated with releases of hazardous substances at the Company’s facilities and off-site disposal locations, workplace safety and equal employment opportunities. These laws and regulations are constantly changing, and it is impossible to predict with accuracy the effect that changes to such laws and regulations may have on the Company in the future. Like other industrial concerns, the Company’s manufacturing operations entail the risk of noncompliance, and there can be no assurance that the Company will not incur material costs or other liabilities as a result thereof. | |||||||||
The Company knows that its Indianola, Iowa property is contaminated with chromium which most likely resulted from chrome plating operations which were discontinued before the Company purchased the property. Chlorinated volatile organic compounds have also been detected in water samples on the property, though the source is unknown at this time. The Company voluntarily worked with an environmental consultant and the state of Iowa with respect to these issues and believes it completed its remediation program in June 2006. The work was accomplished within the Company’s environmental liability reserve balance. We requested a “no further action” classification from the state. We received a conditional “no further action” letter in January of 2009. When we demonstrate stable or improving conditions below residential standards for a certain period of time by monitoring existing wells, we will request an unconditional “no further action” letter. | |||||||||
The Company knows that Bush Hog’s main manufacturing property in Selma, Alabama was contaminated with chlorinated volatile organic compounds which most likely resulted from painting and cleaning operations during the 1960s and 1970s. The contaminated areas were primarily in the location of underground storage tanks and underneath the former waste storage area. Under the Asset Purchase Agreement, Bush Hog’s prior owner agreed to and has removed the underground storage tanks at its cost and has remediated the identified contamination in accordance with the regulations of the Alabama Department of Environmental Management. An environmental consulting firm was retained by the prior owner to administer the cleanup and monitor the site on an ongoing basis until the remediation program is complete and approved by the applicable authorities. | |||||||||
In December of 2012, a federal district court jury in Louisiana found that Gradall was unjustly enriched in the amount of $1,000,000 plus interest when it sold several telescopic fire apparatuses after properly terminating what the jury determined to be an enforceable contract with the plaintiff, a fire truck manufacturer. Gradall appealed the decision and reserved the full amount. In September of 2014, the case was overturned by the Fifth Circuit Court of Appeals which found in Gradall's favor. The plaintiff's final option was to appeal to the U.S. Supreme Court which it did not, affirming the Court of Appeals decision in favor of Gradall. During the fourth quarter of 2014, the Company returned $1,250,000 it had previously reserved to the income statement. | |||||||||
Alamo Group Inc. and Bush Hog, Inc. were added as defendants in 2013 to ongoing litigation by Deere & Company as plaintiff against Bush Hog, LLC (now Duroc, LLC) and Great Plains Manufacturing Incorporated, in which Deere alleged infringement of a mower-related patent. The jury concluded that not only did the defendants not infringe the patent but that the patent was invalid as well. The Company expensed $2,100,000 in legal fees related to this lawsuit in 2013. Deere & Company has appealed and is requesting a new trial. | |||||||||
Certain properties of the Company contain asbestos that may have to be remediated over time. The Company believes that any subsequent change in the liability associated with the asbestos removal will not have a material adverse effect on the Company’s consolidated financial position or results of operations. | |||||||||
The Company is subject to various other federal, state, and local laws affecting its business, as well as a variety of regulations relating to such matters as working conditions, equal employment opportunities, and product safety. A variety of state laws regulate the Company’s contractual relationships with its dealers, some of which impose restrictive standards on the relationship between the Company and its dealers, including events of default, grounds for termination, non-renewal of dealer contracts, and equipment repurchase requirements. The Company believes it is currently in material compliance with all such applicable laws and regulations. |
Quarterly_Financial_Informatio
Quarterly Financial Information (Unaudited) | 12 Months Ended | |||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||||||||||||
Quarterly Financial Data (Unaudited) | QUARTERLY FINANCIAL DATA (Unaudited) | |||||||||||||||||||||||||
Summarized quarterly financial data for 2014 and 2013 are presented below. Seasonal influences affect the Company’s sales and profits, with peak business occurring in May through August. | ||||||||||||||||||||||||||
(in thousands, except per share amounts) | ||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||
First | Second | Third | Fourth | First | Second | Third | Fourth | |||||||||||||||||||
Sales | $ | 172,610 | $ | 207,751 | $ | 234,783 | $ | 223,911 | $ | 159,786 | $ | 179,380 | $ | 176,182 | $ | 166,742 | ||||||||||
Gross profit | 38,130 | 47,286 | 55,440 | 48,372 | 34,912 | 44,091 | 43,156 | 36,351 | ||||||||||||||||||
Net income | 7,238 | 9,195 | 13,367 | 11,351 | 6,950 | 11,787 | 11,333 | 6,024 | ||||||||||||||||||
Earnings per share | ||||||||||||||||||||||||||
Diluted | $ | 0.59 | $ | 0.75 | $ | 1.1 | $ | 1 | $ | 0.57 | $ | 0.97 | $ | 0.93 | $ | 0.49 | ||||||||||
Average shares | ||||||||||||||||||||||||||
Diluted | 12,270 | 12,276 | 12,205 | 11,403 | 12,158 | 12,200 | 12,229 | 12,262 | ||||||||||||||||||
Dividends per share | $ | 0.07 | 0.07 | $ | 0.07 | $ | 0.07 | $ | 0.07 | $ | 0.07 | $ | 0.07 | $ | 0.07 | |||||||||||
Market price of | ||||||||||||||||||||||||||
common stock | ||||||||||||||||||||||||||
High | $ | 60.65 | $ | 57.86 | $ | 55.84 | $ | 52.13 | $ | 40.64 | $ | 44.13 | $ | 49.45 | $ | 61.27 | ||||||||||
Low | $ | 46.87 | $ | 49.5 | $ | 40.75 | $ | 37.93 | $ | 33.12 | $ | 37.39 | $ | 40.48 | $ | 45.51 | ||||||||||
The sum of quarterly earnings per share may not equal total year earnings per share due to rounding of earnings per share amounts, and differences in weighted-average shares and equivalent shares outstanding for each of the periods presented. | ||||||||||||||||||||||||||
The fourth quarter 2014 results include the reversal of a $1.25 million liability the Company had previously reserved relating to a lawsuit which was appealed and overturned in the Company's favor and $.7 million in pretax costs related to the repurchase agreement with Capital Southwest and the subsequent secondary offering of the remaining Capital Southwest shares. | ||||||||||||||||||||||||||
The fourth quarter 2013 results include $1.8 million in pretax legal expenses related to the patent infringement lawsuit filed against the Company. |
Significant_Accounting_Policie1
Significant Accounting Policies (Policies) | 12 Months Ended | |
Dec. 31, 2014 | ||
Accounting Policies [Abstract] | ||
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation | |
The accompanying consolidated financial statements include the accounts of Alamo Group Inc. and its subsidiaries (the “Company” or “Alamo Group”), all of which are wholly owned. All intercompany accounts and transactions have been eliminated in consolidation. | ||
Use of Estimates | Use of Estimates | |
The preparation of financial statements in conformity with U.S. Generally Accepted Accounting Principles requires management to make estimates and assumptions that affect the amount of assets, liabilities, revenues, and expenses reported in the financial statements and accompanying notes. Judgments related to asset impairment and certain reserves are particularly subject to change. Actual results could differ from those estimates. | ||
Foreign Currency | Foreign Currency | |
The Company translates the assets and liabilities of foreign-owned subsidiaries at rates in effect at the end of the year. Revenues and expenses are translated at average rates in effect during the reporting period. Translation adjustments are included in accumulated other comprehensive income (loss). | ||
The Company enters into foreign currency forward contracts to hedge its exposure to certain foreign currency transactions. The Company does not hold or issue financial instruments for trading purposes. Changes in the market value of the foreign currency instruments are recognized in the financial statements upon settlement of the hedged transaction. | ||
Cash Equivalents | Cash Equivalents | |
The Company considers all highly liquid investments with original maturities of three months or less to be cash equivalents. | ||
Concentration of Credit Risk | Concentrations of Credit Risk | |
Financial instruments which potentially subject the Company to concentrations of credit risk consist principally of accounts receivable. The credit risk is limited because of the large numbers and types of customers and their geographic dispersion. | ||
Inventories | Inventories | |
Inventories of U.S. operating subsidiaries are stated at the lower of cost (last-in, first-out method) (“LIFO”) or market, and the Company’s international subsidiaries’ inventories are stated at the lower of cost (first-in, first-out) (“FIFO”) or market. | ||
Property, Plant and Equipment | Property, Plant and Equipment | |
Property, plant, and equipment are stated on the basis of cost. Major renewals and betterments are charged to the property accounts while replacements, maintenance and repairs, which do not improve or extend the lives of the respective assets, are expensed to the current period. Depreciation is provided at amounts calculated to amortize the cost of the assets over their estimated useful economic lives using the straight-line method. | ||
Goodwill | Goodwill | |
Goodwill consists of the excess of the purchase price over the fair value of identifiable net assets of businesses acquired. We perform our annual goodwill impairment test as of December 31 and monitor for interim triggering events on an ongoing basis. Goodwill is reviewed for impairment utilizing a qualitative assessment or a two-step process. We have an option to make a qualitative assessment of a reporting unit's goodwill for impairment. If we choose to perform a qualitative assessment and determine the fair value more likely than not exceeds the carrying value, no further evaluation is necessary. For reporting units where we perform the two-step process, the first step requires us to compare the fair value of each reporting unit, which we primarily determine using an income approach based on the present value of discounted cash flows, to the respective carrying value, which includes goodwill. If the fair value of the reporting unit exceeds its carrying value, the goodwill is not considered impaired. If the carrying value is higher than the fair value, there is an indication that an impairment may exist and the second step is required. In step two, the implied fair value of goodwill is calculated as the excess of the fair value of a reporting unit over the fair values assigned to its assets and liabilities. If the implied fair value of goodwill is less than the carrying value of the reporting unit's goodwill, the difference is recognized as an impairment loss. | ||
The Company estimates the fair value of its reporting units using a discounted cash flow analysis. This analysis requires the Company to make significant assumptions and estimates about the extent and timing of future cash flows, discount rates and growth rates. The cash flows are estimated over a significant future period of time, which makes those estimates and assumptions subject to an even higher degree of uncertainty. The Company also utilizes market valuation models and other financial ratios, which require the Company to make certain assumptions and estimates regarding the applicability of those models to its assets and businesses. As of December 31, 2014, goodwill was $72,407,000, which represents 12% of total assets. | ||
The Company recognized no goodwill impairment in 2014 or 2013. The Company recognized goodwill impairment at one of its French operations, Faucheux, of $656,000 in 2012. The primary reason for the goodwill impairment in 2012 was the general economic downturn that affected the Company's European operations. This caused the Company to revise its expectations about future revenue, which is a significant factor in the discounted cash flow analysis used to estimate the fair value of the Company's reporting units. During the 2014 impairment analysis review, we performed a sensitivity analysis for goodwill impairment with respect to each of our reporting units and determined that a hypothetical 15% decline in the fair value of each reporting unit as of December 31, 2014 would not result in an impairment of goodwill for any of the reporting units. | ||
Management believes that the estimated valuations it arrived at are reasonable and consistent with what other marketplace participants would use in valuing the Company's components. However, management cannot give any assurance that these market values will not change in the future. For example, if discount rates demanded by the market increase, this could lead to reduced valuations under the income approach. If the Company's projections are not achieved in the future, this could lead management to reassess their assumptions and lead to reduced valuations under the income approach. If the market price of the Company's stock decreases, this could cause the Company to reassess the reasonableness of the implied control premium, which might cause management to assume a higher discount rate under the income approach which could lead to reduced valuations. If future similar transactions exhibit lower multiples than those observed in the past, this could lead to reduced valuations under the similar transactions approach. And finally, if there is a general decline in the stock market and particularly in those companies selected as comparable to the Company's components, this could lead to reduced valuations under the public company market multiple approach. The Company's annual impairment test is performed during the fourth quarter of each fiscal year. Given the current market conditions and continued economic uncertainty, the fair value of the Company's components could deteriorate which could result in the need to record impairment charges in future periods. The Company also monitors potential triggering events including changes in the business climate in which it operates, attrition of key personnel, volatility in the capital markets, the Company's market capitalization compared to its book value, the Company's recent operating performance, and the Company's financial projections. The occurrence of one or more triggering events could require additional impairment testing, which could result in future impairment charges. | ||
See Note 7 to the Consolidated Financial Statements for more information regarding goodwill. | ||
Intangible Assets | Intangible Assets | |
The Company has intangible assets with both definite and indefinite useful lives. The definite-lived assets are trade names and trademarks, customer and dealer relationships, and patents and drawings that are subject to amortization with useful lives ranging from 12 years to 25 years. The net book value of these assets at December 31, 2014 was $51,484,000 and zero at December 31, 2013. | ||
The indefinite-lived assets not subject to amortization consist of trade names. The net book value of these trade names was $5,500,000 as of December 31, 2014 and December 31, 2013. This consisted of the Gradall trade name with a carrying value of $3,600,000 and the Bush Hog trade name with a carrying value of $1,900,000. The Company will tests its indefinite-lived intangible assets for impairment on an annual basis at year-end, or more frequently if an event occurs or circumstances change that indicate that the fair value of an indefinite-lived intangible asset could be below its carrying amount. The impairment test consists of comparing the fair value of the indefinite-lived intangible asset, determined using the relief from royalty method, with its carrying amount. An impairment loss would be recognized for the carrying amount in excess of its fair value. | ||
Pensions | Pensions | |
In connection with the February 3, 2006 purchase of all the net assets of the Gradall excavator business, the Company assumed sponsorship of two Gradall non-contributory defined benefit pension plans, both of which were frozen with respect to both future benefit accruals and future new entrants. | ||
The Gradall Company Hourly Employees’ Pension Plan covers approximately 331 former employees and 125 current employees who (i) were formerly employed by JLG Industries, Inc., (ii) were covered by a collective bargaining agreement and (iii) first participated in the plan before April 6, 1997. An amendment ceasing all future benefit accruals was effective April 6, 1997. | ||
The Gradall Company Employees’ Retirement Plan covers approximately 238 former employees and 83 current employees who (i) were formerly employed by JLG Industries, Inc., (ii) were not covered by a collective bargaining agreement, and (iii) first participated in the plan before December 31, 2004. An amendment ceasing future benefit accruals for certain participants was effective December 31, 2004. A second amendment discontinued all future benefit accruals for all participants effective April 24, 2006. | ||
The Company recognizes the funded status of the defined benefit pension plans as a liability in its statement of financial position and recognizes any changes in that funded status in the year in which the changes occur through other comprehensive income (loss). | ||
Related Party Transactions | Related Party Transactions | |
There were no reportable relationships or related party transactions for the years ended December 31, 2014 and 2013. | ||
Revenue Recognition | Revenue Recognition | |
The Company recognizes revenue when each of the following four criteria are met: 1) a contract or sales arrangement exists; 2) products have been shipped per agreed terms and title has been transferred or services have been rendered; 3) the prices of the products or services are fixed or determinable; and 4) collectability is reasonably assured. Pre-season sales orders are solicited in the fall in advance of the dealer’s sales season in the spring and summer. Pre-season sales orders are shipped beginning in the fall and continuing through the spring and represent an opportunity for the Company’s factories to level their production/shipping volumes through the winter months. These pre-season shipments carry descending discounts in conjunction with delayed payment terms of up to six months from the dealer’s requested delivery date. Revenue from sales is recorded net of a provision for discounts that are anticipated to be earned and deducted at time of payment by the customer. These approximated discounts are estimated using an average of historical discounts taken and are adjusted as program terms are changed. The reserves for discounts are reviewed and adjusted quarterly. From time to time, revenue is recognized under a bill and hold arrangement. Revenue recognized under bill and hold arrangements for 2014, 2013, and 2012 was immaterial. | ||
Rental Equipment | Rental Equipment | |
The Company enters into lease agreements with customers related to the rental of certain equipment. All of these leasing agreements are classified as operating leases, and are for periods not to exceed two years. In accounting for these leases, the cost of the equipment purchased or manufactured by the Company is recorded as an asset, and is depreciated over its estimated useful life. Accumulated depreciation relating to the rental equipment was $3,435,000 as of December 31, 2014. The rental income is recognized ratably over the term of the leases. | ||
Accounting for Internal Use Software | Accounting for Internal Use Software | |
The Company capitalizes certain costs associated with the development and installation of internal use software. Internal use software costs are expensed or capitalized depending on whether they are incurred in the preliminary project stage, application development stage or the post-implementation stage. Amounts capitalized are amortized over the estimated useful lives of the software. | ||
Shipping and Handling Costs | Shipping and Handling Costs | |
The Company’s policy is to include shipping and handling costs in costs of goods sold. | ||
Advertising | Advertising | |
We charge advertising costs to expense as incurred. | ||
Research and Development | Research and Development | |
Product development and engineering costs charged to SG&A amounted to $8,427,000, $7,164,000, and $5,686,000 for the years ended December 31, 2014, 2013 and 2012, respectively. | ||
Legal Costs | Legal Costs | |
The Company’s policy is to accrue for legal costs expected to be incurred in connection with loss contingencies. | ||
Federal Income Taxes | Federal Income Taxes | |
Deferred tax assets and liabilities are determined based on differences between the financial reporting basis and tax basis of assets and liabilities, and are measured by applying enacted statutory tax rates applicable to the future years in which deferred tax assets or liabilities are expected to be settled or realized. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversals of deferred tax liabilities, projected future taxable income, available tax carrybacks and tax planning strategies in making this assessment other than those which we have reserved. Based upon projections of future taxable income over the periods in which the deferred tax assets are deductible, management believes it is more likely than not that we will realize the benefits of these deductible differences. | ||
We do not provide for a U.S. income tax liability on undistributed earnings of our foreign subsidiaries. The earnings of non-U.S. subsidiaries, which reflect full provision for non-U.S. income taxes, are currently indefinitely reinvested in non-U.S. operations. | ||
Stock-based Compensation | Stock-Based Compensation | |
The Company has granted options to purchase its common stock to certain employees and directors of the Company and its affiliates under various stock option plans at no less than the fair market value of the underlying stock on the date of grant. These options are granted for a term not exceeding ten years and are forfeited in the event the employee or director terminates his or her employment or relationship with the Company or one of its affiliates other than by retirement or death. These options generally vest over five years. All option plans contain anti-dilutive provisions that permit an adjustment of the number of shares of the Company’s common stock represented by each option for any change in capitalization. | ||
The fair value of each stock option is estimated on the date of grant using the Black-Scholes valuation method with the following assumptions noted: | ||
1 | The risk-free rate is based on the U.S. Treasury rate over the expected life of the option at the time of the grant. | |
2 | The dividend yield is calculated as the ratio of dividends paid per share of common stock to the stock price on the date of the grant. | |
3 | The expected volatility factors are based on the historical movement of the Company’s common stock price over the expected life of the option. | |
4 | The expected life is the average length of time in which officers, other employees, and non-employee directors are expected to exercise their options, and which are primarily based on historical experience. | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments | |
The carrying values of certain financial instruments, including cash and cash equivalents, accounts receivable, accounts payable, and accrued expenses, approximate fair value because of the short-term nature of these items. The carrying value of our debt approximates the fair value as of December 31, 2014 and 2013, as the floating rates on our outstanding balances approximate current market rates. This conclusion was made based on Level 2 inputs. | ||
Inventories - Obsolete and Slow Moving | Inventories – Obsolete and Slow Moving | |
The Company had a reserve of $7,601,000 on December 31, 2014 and $8,596,000 on December 31, 2013 to cover obsolete and slow moving inventory. The decrease in the reserve was mainly from the Company's Agricultural Division. The obsolete and slow moving inventory policy states that the reserve is to be calculated as follows: 1) no inventory usage over a three-year period is deemed obsolete and reserved at 100 percent; and 2) slow moving inventory with little usage requires a 100 percent reserve on items that have a quantity greater than a three-year supply. There are exceptions to the obsolete and slow moving classifications if approved by an officer of the Company, based on specific identification of an item or items that are deemed to be either included or excluded from this classification. In cases where there is no historical data, management makes a judgment based on a specific review of the inventory in question to determine what reserves, if any, are appropriate. New products or parts are generally excluded from the reserve policy until a three-year history has been established. | ||
Warranty | Warranty | |
The Company’s warranty policy is generally to provide its customers warranty for up to one year on all wholegood units and 90 days on parts, though some components can have warranty for longer terms. | ||
Warranty reserve, as a percentage of sales, is generally calculated by looking at the current twelve months’ expenses and prorating that amount based on twelve months’ sales with a ninety-day to six-month lag period. The Company’s historical experience is that an end-user takes approximately 90 days to six months from the receipt of the unit to file a warranty claim. A warranty reserve is established for each different marketing group. Reserve balances are evaluated on a quarterly basis and adjustments made when required. |
Significant_Accounting_Policie2
Significant Accounting Policies (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Accounting Policies [Abstract] | ||||||||||
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The Company calculated the fair value for options with the following weighted-average assumptions for 2014, 2013, and 2012: | |||||||||
December 31, | ||||||||||
2014 | 2013 | 2012 | ||||||||
Risk-free interest rate | 2.24 | % | 1.38 | % | 1.44 | % | ||||
Dividend yield | 0.5 | % | 0.8 | % | 1.2 | % | ||||
Volatility factors | 48.2 | % | 47.9 | % | 46.7 | % | ||||
Weighted-average expected life | 8.0 years | 8.0 years | 8.0 years | |||||||
Acquisitions_and_Investments_T
Acquisitions and Investments (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Business Acquisition [Line Items] | |||||||||
Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination | Intangible assets determined to be definite-lived assets and are broken down as follows: | ||||||||
(in thousands) | Estimated Useful Lives | Value at Acquisition | |||||||
Definite: | |||||||||
Trade names and trademarks | 25 | $ | 22,200 | ||||||
Customer and dealer relationships | 14 | 29,700 | |||||||
Patents and drawings | 12 | 2,000 | |||||||
Total | $ | 53,900 | |||||||
Specialized Industries LP | |||||||||
Business Acquisition [Line Items] | |||||||||
Schedule of Business Acquisitions, by Acquisition | The following table summarizes the fair value of the assets acquired and liabilities assumed as of the Acquisition date (in thousands): | ||||||||
Cash | $ | 2,025 | |||||||
Accounts receivable | 16,290 | ||||||||
Inventory | 47,500 | ||||||||
Prepaid expenses | 3,223 | ||||||||
Deferred income tax assets | 1,554 | ||||||||
Rental equipment | 28,446 | ||||||||
Property, plant & equipment | 13,214 | ||||||||
Intangible assets | 53,900 | ||||||||
Other assets | 675 | ||||||||
Deferred income tax liabilities | (4,293 | ) | |||||||
Other liabilities assumed | (10,962 | ) | |||||||
Net assets assumed | 151,572 | ||||||||
Goodwill | 41,327 | ||||||||
Acquisition Price | $ | 192,899 | |||||||
Business Acquisition, Pro Forma Information | The following table presents the unaudited pro forma combined results of operations of the Company and the acquired business units of Specialized as if the acquisition had occurred on January 1, 2013 for the years ended December 31, 2014 and December 31, 2013. This includes certain pro forma adjustments including: (i) recognition of the costs related to the step-up in fair value of the Specialized inventory, (ii) amortization of acquired intangible assets, (iii) the impact of certain fair value adjustments such as depreciation on the acquired rental equipment and property, plant and equipment, and (iv) interest expense for historical long-term debt of Specialized that was repaid and interest expense on additional borrowings by the Company to fund the acquisition. The unaudited pro forma statement of income of the Company is as follows: | ||||||||
(Unaudited) Year Ended | |||||||||
December 31, | |||||||||
(In thousands, except per share amounts) | 2014 | 2013 | |||||||
Net sales | $ | 882,568 | $ | 828,809 | |||||
Net income | $ | 42,575 | $ | 37,306 | |||||
Diluted earnings per share | $ | 3.54 | $ | 3.05 | |||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Earnings Per Share [Abstract] | ||||||||||||
Schedule of Earnings Per Share, Basic and Diluted | The following table sets forth the reconciliation from basic to diluted average common shares and the calculations of net income per common share. Net income for basic and diluted calculations does not differ. | |||||||||||
(in thousands, except per share amounts) | 2014 | 2013 | 2012 | |||||||||
Net income | $ | 41,151 | $ | 36,094 | $ | 28,903 | ||||||
Average common shares: | ||||||||||||
Basic (weighted-average outstanding shares) | 11,875 | 12,050 | 11,899 | |||||||||
Dilutive potential common shares from stock options | 164 | 162 | 159 | |||||||||
12,039 | 12,212 | 12,058 | ||||||||||
Diluted (weighted-average outstanding shares) | ||||||||||||
Basic earnings per share | $ | 3.47 | $ | 3 | $ | 2.43 | ||||||
Diluted earnings per share | $ | 3.42 | $ | 2.96 | $ | 2.4 | ||||||
Valuation_and_Qualifying_Accou1
Valuation and Qualifying Accounts (Tables) | 12 Months Ended | |||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||
Receivables [Abstract] | ||||||||||||||||||||||
Schedule Of Valuation And Qualifying Accounts | Valuation and qualifying accounts included the following: | |||||||||||||||||||||
Balance | Net | Translations, | Net Write-Offs or | Balance | ||||||||||||||||||
Beginning of | Charged to | Reclassifications | Discounts Taken | End of | ||||||||||||||||||
Year | Costs and | and Acquisitions | Year | |||||||||||||||||||
(in thousands) | Expenses | |||||||||||||||||||||
2014 | ||||||||||||||||||||||
Allowance for doubtful accounts | $ | 2,738 | $ | 469 | $ | (153 | ) | $ | (201 | ) | $ | 2,853 | ||||||||||
Reserve for sales discounts | 16,724 | 79,877 | (98 | ) | (80,504 | ) | 15,999 | |||||||||||||||
Reserve for inventory obsolescence | 8,596 | 2,938 | (297 | ) | (3,636 | ) | 7,601 | |||||||||||||||
Reserve for warranty | 4,994 | 7,467 | 843 | (7,391 | ) | 5,913 | ||||||||||||||||
2013 | ||||||||||||||||||||||
Allowance for doubtful accounts | $ | 3,077 | $ | 31 | $ | 62 | $ | (432 | ) | $ | 2,738 | |||||||||||
Reserve for sales discounts | 15,005 | 76,184 | — | (74,465 | ) | 16,724 | ||||||||||||||||
Reserve for inventory obsolescence | 9,099 | 2,586 | (157 | ) | (2,932 | ) | 8,596 | |||||||||||||||
Reserve for warranty | 5,007 | 6,410 | 80 | (6,503 | ) | 4,994 | ||||||||||||||||
2012 | ||||||||||||||||||||||
Allowance for doubtful accounts | $ | 3,215 | $ | 253 | $ | 113 | $ | (504 | ) | $ | 3,077 | |||||||||||
Reserve for sales discounts | 14,567 | 65,481 | (16 | ) | (65,027 | ) | 15,005 | |||||||||||||||
Reserve for inventory obsolescence | 7,630 | 2,998 | 79 | (1,608 | ) | 9,099 | ||||||||||||||||
Reserve for warranty | 5,083 | 6,646 | 82 | (6,804 | ) | 5,007 | ||||||||||||||||
Inventories_Tables
Inventories (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Inventory Disclosure [Abstract] | |||||||||
Schedule of Inventory, Current | Inventories consisted of the following on a cost basis, net of reserves: | ||||||||
December 31, | |||||||||
(in thousands) | 2014 | 2013 | |||||||
Finished goods and parts | $ | 112,197 | $ | 84,548 | |||||
Work in process | 18,635 | 9,906 | |||||||
Raw materials | 35,256 | 14,650 | |||||||
$ | 166,088 | $ | 109,104 | ||||||
Property_Plant_and_Equipment_T
Property Plant and Equipment (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||
Property, Plant and Equipment | Property, plant and equipment consist of the following: | ||||||||||
December 31, | |||||||||||
2014 | 2013 | Useful | |||||||||
(in thousands) | Lives | ||||||||||
Land | $ | 9,181 | $ | 8,708 | |||||||
Buildings and improvements | 72,514 | 62,169 | 5-20 yrs. | ||||||||
Machinery and equipment | 66,799 | 65,451 | 3-10 yrs. | ||||||||
Office furniture and equipment | 6,254 | 6,705 | 3-7 yrs. | ||||||||
Computer software | 11,283 | 10,557 | 3-7 yrs. | ||||||||
Transportation equipment | 5,636 | 4,786 | 3 yrs. | ||||||||
171,667 | 158,376 | ||||||||||
Accumulated depreciation | (100,497 | ) | (96,472 | ) | |||||||
$ | 71,170 | $ | 61,904 | ||||||||
Goodwill_Tables
Goodwill (Tables) | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Schedule of Goodwill | The changes in the carrying amount of goodwill for the twelve months ended December 31, 2012, 2013 and 2014 are as follows: | |||
(in thousands) | ||||
Balance at December 31, 2011 | $ | 31,751 | ||
Translation adjustment | 553 | |||
Goodwill impairment | (656 | ) | ||
Balance at December 31, 2012 | $ | 31,648 | ||
Translation adjustment | 425 | |||
Goodwill impairment | $ | — | ||
Balance at December 31, 2013 | $ | 32,073 | ||
Translation adjustment | (2,217 | ) | ||
Goodwill acquired | 42,551 | |||
Balance at December 31, 2014 | $ | 72,407 | ||
Definite_and_Indefinite_Lived_1
Definite and Indefinite Lived Intangible Assets (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||
Schedule of Finite Lived Intangible Assets | The following is a summary of both the Company's definite and indefinite-lived intangible assets net of the accumulated amortization: | |||||||||||
(in thousands) | Estimated Useful Lives | December 31, | December 31, 2013 | |||||||||
2014 | ||||||||||||
Definite: | ||||||||||||
Trade names and trademarks | 25 years | $ | 22,104 | — | ||||||||
Customer and dealer relationships | 14 years | 29,404 | — | |||||||||
Patents and drawings | 12 years | 1,968 | — | |||||||||
Total at cost | 53,476 | — | ||||||||||
Less accumulated amortization | 1,992 | — | ||||||||||
Total net | 51,484 | — | ||||||||||
Indefinite: | ||||||||||||
Trade names and trademarks | 5,500 | 5,500 | ||||||||||
Total Intangible Assets | $ | 56,984 | $ | 5,500 | ||||||||
Accrued_Liabilities_Tables
Accrued Liabilities (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Payables and Accruals [Abstract] | |||||||||
Schedule of Accrued Liabilities | Accrued liabilities consist of the following balances: | ||||||||
December 31, | |||||||||
(in thousands) | 2014 | 2013 | |||||||
Salaries, wages and bonuses | $ | 20,635 | $ | 15,509 | |||||
Warranty | 5,913 | 4,994 | |||||||
State taxes | 3,997 | 5,217 | |||||||
Other | 10,457 | 7,762 | |||||||
$ | 41,002 | $ | 33,482 | ||||||
LongTerm_Debt_Tables
Long-Term Debt (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Debt Disclosure [Abstract] | |||||||||
Schedule of Components of Long-Term Debt | The components of long-term debt are as follows: | ||||||||
December 31, | |||||||||
(in thousands) | 2014 | 2013 | |||||||
Bank revolving credit facility | $ | 190,000 | $ | — | |||||
Capital lease obligations | 59 | 120 | |||||||
Other notes payable | 516 | 308 | |||||||
Total debt | 190,575 | 428 | |||||||
Less current maturities | 551 | 420 | |||||||
Total long-term debt | $ | 190,024 | $ | 8 | |||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||
Schedule of Income before Income Tax, Domestic and Foreign | The jurisdictional components of income before taxes consist of the following: | ||||||||||||
December 31, | |||||||||||||
(in thousands) | 2014 | 2013 | 2012 | ||||||||||
Income before income taxes: | |||||||||||||
Domestic | $ | 43,345 | $ | 35,146 | $ | 29,390 | |||||||
Foreign | 17,260 | 16,242 | 14,056 | ||||||||||
$ | 60,605 | $ | 51,388 | $ | 43,446 | ||||||||
Schedule of Components of Income Tax Expense (Benefit) | The components of income tax expense (benefit) consist of the following: | ||||||||||||
December 31, | |||||||||||||
(in thousands) | 2014 | 2013 | 2012 | ||||||||||
Current: | |||||||||||||
Domestic | $ | 13,495 | $ | 10,605 | $ | 9,273 | |||||||
Foreign | 3,382 | 3,200 | 4,919 | ||||||||||
State | 2,685 | 2,366 | 756 | ||||||||||
19,562 | 16,171 | 14,948 | |||||||||||
Deferred: | |||||||||||||
Domestic | (600 | ) | (1,074 | ) | (192 | ) | |||||||
Foreign | 540 | 249 | (363 | ) | |||||||||
State | (48 | ) | (52 | ) | 150 | ||||||||
(108 | ) | (877 | ) | (405 | ) | ||||||||
Total income taxes | $ | 19,454 | $ | 15,294 | $ | 14,543 | |||||||
Schedule of Effective Income Tax Rate Reconciliation | The difference between income tax expense (benefit) for financial statement purposes and the amount of income tax expense computed by applying the domestic statutory income tax rate of 35% to income before income taxes consist of the following: | ||||||||||||
December 31, | |||||||||||||
(in thousands) | 2014 | 2013 | 2012 | ||||||||||
Domestic statutory rate at 35% | $ | 21,212 | $ | 17,985 | $ | 15,206 | |||||||
Increase (reduction) from: | |||||||||||||
Jurisdictional rate differences | (2,119 | ) | (1,959 | ) | (1,477 | ) | |||||||
Goodwill impairment | — | — | 157 | ||||||||||
Valuation allowance | 353 | (114 | ) | 825 | |||||||||
Stock based compensation | 199 | 136 | 214 | ||||||||||
U.S. state taxes | 1,649 | 1,496 | 589 | ||||||||||
Domestic production deduction | (1,321 | ) | (1,162 | ) | (948 | ) | |||||||
R&E credit | (614 | ) | (856 | ) | (130 | ) | |||||||
Other, net | 95 | (232 | ) | 107 | |||||||||
Provision for income taxes | $ | 19,454 | $ | 15,294 | $ | 14,543 | |||||||
Effective tax rate | 32 | % | 30 | % | 33 | % | |||||||
Schedule of Deferred Tax Assets and Liabilities | The components of the Company’s deferred income tax assets and liabilities consist of the following: | ||||||||||||
December 31, | |||||||||||||
(in thousands) | 2014 | 2013 | |||||||||||
Deferred income tax assets: | |||||||||||||
Inventory basis difference | $ | 1,051 | $ | 1,576 | |||||||||
Accounts receivable reserve | 394 | 201 | |||||||||||
Stock based compensation | 1,284 | 904 | |||||||||||
Pension liability | 3,018 | 1,604 | |||||||||||
Employee benefit accrual | 1,448 | 601 | |||||||||||
Product liability and warranty reserves | 1,480 | 1,417 | |||||||||||
Expenses not currently deductible for tax purposes | 410 | 1,064 | |||||||||||
Foreign net operating loss | 1,379 | 2,954 | |||||||||||
State net operating loss | 10 | 76 | |||||||||||
Other | — | 34 | |||||||||||
Total deferred income tax assets | $ | 10,474 | $ | 10,431 | |||||||||
Less: Valuation allowance | (1,064 | ) | (711 | ) | |||||||||
Net deferred income tax assets | $ | 9,410 | $ | 9,720 | |||||||||
Deferred income tax liabilities: | |||||||||||||
Depreciation | (2,786 | ) | (3,068 | ) | |||||||||
Intangible assets | (2,144 | ) | (1,277 | ) | |||||||||
Deferred revenue | 38 | (66 | ) | ||||||||||
Expenses not currently deductible for tax purposes | (356 | ) | (461 | ) | |||||||||
Total deferred income tax liabilities | $ | (5,248 | ) | $ | (4,872 | ) | |||||||
Net deferred income tax assets | $ | 4,162 | $ | 4,848 | |||||||||
Schedule of Unrecognized Tax Benefits Roll Forward | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Balance as of beginning of year | $ | 146,000 | $ | 257,000 | |||||||||
Additions for tax positions related to the current year | 63,000 | 56,000 | |||||||||||
Additions for tax positions related to prior years | 262,000 | 27,000 | |||||||||||
Reduction due to lapse of statute of limitations | (83,000 | ) | (194,000 | ) | |||||||||
Balance as of end of year | $ | 388,000 | $ | 146,000 | |||||||||
Stock_Options_Tables
Stock Options (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity | Following is a summary of activity in the Restricted Stock Units for the periods indicated: | |||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
Shares | Exercise | Shares | Exercise | Shares | Exercise | |||||||||||
Price* | Price* | Price* | ||||||||||||||
Options outstanding at beginning of year | 10,724 | $ | 32.49 | 11,375 | $ | 24.24 | 19,750 | $ | 22.96 | |||||||
Granted | 6,000 | 53.51 | 4,224 | 42.7 | — | — | ||||||||||
Exercised | (4,681 | ) | 29.56 | (4,875 | ) | 22.07 | (6,125 | ) | 21.13 | |||||||
Cancelled | — | — | — | — | (2,250 | ) | 21.45 | |||||||||
Options outstanding at end of year | 12,043 | 44.1 | 10,724 | 32.49 | 11,375 | 24.24 | ||||||||||
*Weighted Averages | ||||||||||||||||
Qualified Stock Options | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||
Schedule of Share-based Compensation, Stock Options, Activity | Following is a summary of activity in the Incentive Stock Option Plans for the periods indicated: | |||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
Shares | Exercise | Shares | Exercise | Shares | Exercise | |||||||||||
Price* | Price* | Price* | ||||||||||||||
Options outstanding at beginning of year | 292,350 | $ | 26.68 | 330,730 | $ | 21.82 | 377,480 | $ | 19.27 | |||||||
Granted | 48,250 | 52.67 | 49,000 | 42.7 | 61,000 | 32.76 | ||||||||||
Exercised | (27,700 | ) | 24.33 | (81,880 | ) | 16.77 | (99,650 | ) | 19.26 | |||||||
Canceled | (11,100 | ) | 35.42 | (5,500 | ) | 24.24 | (8,100 | ) | 17.2 | |||||||
Options outstanding at end of year | 301,800 | 30.73 | 292,350 | 26.68 | 330,730 | 21.82 | ||||||||||
Options exercisable at end of year | 172,450 | $ | 22.3 | 154,950 | $ | 21.57 | 192,830 | $ | 19.48 | |||||||
Options available for grant at end of year | 28,950 | 66,100 | 109,600 | |||||||||||||
*Weighted Averages | ||||||||||||||||
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range | Options outstanding and exercisable at December 31, 2014 were as follows: | |||||||||||||||
Qualified Stock Options | Options Outstanding | Options Exercisable | ||||||||||||||
Remaining | Exercise | |||||||||||||||
Contractual | Price* | Exercise | ||||||||||||||
Shares | Life (yrs)* | Shares | Price* | |||||||||||||
Range of Exercise Price | ||||||||||||||||
$11.45 - $19.79 | 56,550 | 3.93 | $ | 12.33 | 56,550 | $ | 12.33 | |||||||||
$22.39 - $42.70 | 197,500 | 5.74 | $ | 30.7 | 115,900 | $ | 27.16 | |||||||||
$49.44 - $53.51 | 47,750 | 9.42 | $ | 52.66 | — | $ | — | |||||||||
Total | 301,800 | 172,450 | ||||||||||||||
*Weighted Averages | ||||||||||||||||
Non Qualified Options | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||
Schedule of Share-based Compensation, Stock Options, Activity | Following is a summary of activity in the Non-Qualified Stock Option Plans for the periods indicated: | |||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
Shares | Exercise | Shares | Exercise | Shares | Exercise | |||||||||||
Price* | Price* | Price* | ||||||||||||||
Options outstanding at beginning of year | 114,700 | $ | 24.87 | 89,700 | $ | 19.91 | 112,800 | $ | 18.62 | |||||||
Granted | 29,000 | 53.51 | 25,000 | 42.7 | — | — | ||||||||||
Exercised | (11,600 | ) | 23.29 | — | — | (23,100 | ) | 13.62 | ||||||||
Cancelled | — | — | — | — | — | — | ||||||||||
Options outstanding at end of year | 132,100 | 31.3 | 114,700 | 24.87 | 89,700 | 19.91 | ||||||||||
Options exercisable at end of year | 71,100 | $ | 19.85 | 57,900 | $ | 19.89 | 38,100 | $ | 21.91 | |||||||
Options available for grant at end of year | 258,526 | 293,526 | 322,750 | |||||||||||||
*Weighted Averages | ||||||||||||||||
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range | Options outstanding and exercisable as of December 31, 2014 were as follows: | |||||||||||||||
Non-Qualified Stock Options | Options Outstanding | Options Exercisable | ||||||||||||||
Remaining | ||||||||||||||||
Contractual | Exercise | Exercise | ||||||||||||||
Shares | Life (yrs)* | Price* | Shares | Price* | ||||||||||||
Range of Exercise Price | ||||||||||||||||
$11.45 | 35,600 | 4.36 | $ | 11.45 | 35,600 | $ | 11.45 | |||||||||
$22.39 - $42.70 | 67,500 | 6.33 | 32.23 | 35,500 | 28.28 | |||||||||||
$53.51 | 29,000 | 9.37 | $ | 53.51 | — | $ | — | |||||||||
Total | 132,100 | 71,100 | ||||||||||||||
*Weighted Averages |
Retirement_Benefit_Plans_Table
Retirement Benefit Plans (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||||||||||
Schedule of Defined Benefit Plans Disclosures | The following tables set forth the change in plan assets, change in projected benefit obligation, rate assumptions and components of net periodic benefit cost as of December 31 with respect to these plans. The measurement dates of the assets and liabilities of both plans were December 31 of the respective years presented. | |||||||||||||||||||
Year Ended December 31, 2014 | ||||||||||||||||||||
(in thousands) | Hourly | Employees’ | Total | |||||||||||||||||
Employees’ | Retirement | |||||||||||||||||||
Pension Plan | Plan | |||||||||||||||||||
Change in projected benefit obligation | ||||||||||||||||||||
Benefit obligation at beginning of year | $ | 9,477 | $ | 18,335 | $ | 27,812 | ||||||||||||||
Service cost | 8 | 4 | 12 | |||||||||||||||||
Interest cost | 422 | 852 | 1,274 | |||||||||||||||||
Liability actuarial loss (gain) | 1,189 | 3,163 | 4,352 | |||||||||||||||||
Benefits paid | (640 | ) | (759 | ) | (1,399 | ) | ||||||||||||||
Benefit obligation at end of year | 10,456 | 21,595 | 32,051 | |||||||||||||||||
Change in fair value of plan assets | ||||||||||||||||||||
Fair value of plan assets at beginning of year | 8,873 | 16,401 | 25,274 | |||||||||||||||||
Return on plan assets | 442 | 820 | 1,262 | |||||||||||||||||
Employer contributions | 548 | 652 | 1,200 | |||||||||||||||||
Benefits paid | (640 | ) | (759 | ) | (1,399 | ) | ||||||||||||||
Fair value of plan assets at end of year | 9,223 | 17,114 | 26,337 | |||||||||||||||||
Underfunded status – December 31, 2014 | $ | (1,233 | ) | $ | (4,481 | ) | $ | (5,714 | ) | |||||||||||
Year Ended December 31, 2013 | ||||||||||||||||||||
(in thousands) | Hourly | Employees’ | Total | |||||||||||||||||
Employees’ | Retirement | |||||||||||||||||||
Pension Plan | Plan | |||||||||||||||||||
Change in projected benefit obligation | ||||||||||||||||||||
Benefit obligation at beginning of year | $ | 10,786 | $ | 20,923 | $ | 31,709 | ||||||||||||||
Service cost | 11 | 5 | 16 | |||||||||||||||||
Interest cost | 371 | 760 | 1,131 | |||||||||||||||||
Liability actuarial (gain) loss | (1,060 | ) | (2,620 | ) | (3,680 | ) | ||||||||||||||
Benefits paid | (631 | ) | (733 | ) | (1,364 | ) | ||||||||||||||
Benefit obligation at end of year | 9,477 | 18,335 | 27,812 | |||||||||||||||||
Change in fair value of plan assets | ||||||||||||||||||||
Fair value of plan assets at beginning of year | 7,690 | 14,148 | 21,838 | |||||||||||||||||
Return on plan assets | 1,136 | 2,090 | 3,226 | |||||||||||||||||
Employer contributions | 678 | 896 | 1,574 | |||||||||||||||||
Benefits paid | (631 | ) | (733 | ) | (1,364 | ) | ||||||||||||||
Fair value of plan assets at end of year | 8,873 | 16,401 | 25,274 | |||||||||||||||||
Underfunded status – December 31, 2013 | $ | (604 | ) | $ | (1,934 | ) | $ | (2,538 | ) | |||||||||||
Schedule of Assumptions Used | Assumptions used to determine benefit obligations at December 31: | |||||||||||||||||||
Hourly Employees’ | Employees’ | |||||||||||||||||||
Pension Plan | Retirement Plan | |||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||
Discount rate | 4.00% | 4.60% | 4.10% | 4.75% | ||||||||||||||||
Composite rate of compensation increase | N/A | N/A | N/A | N/A | ||||||||||||||||
Assumptions used to determine net periodic benefit cost for the years ended December 31: | ||||||||||||||||||||
Hourly Employees’ | Employees’ | |||||||||||||||||||
Pension Plan | Retirement Plan | |||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||
Discount rate | 4.60% | 3.55% | 4.75% | 3.70% | ||||||||||||||||
Long-term rate of return on plan assets | 7.25% | 7.25% | 7.25% | 7.25% | ||||||||||||||||
Composite rate of compensation increase | N/A | N/A | N/A | N/A | ||||||||||||||||
Schedule of Net Benefit Costs | The following tables present the components of net periodic benefit cost (gains are denoted with parentheses and losses are not): | |||||||||||||||||||
Year Ended December 31, 2014 | ||||||||||||||||||||
Hourly Employees’ | Employees’ | Total | ||||||||||||||||||
(in thousands) | Pension Plan | Retirement Plan | ||||||||||||||||||
Service cost | $ | 8 | $ | 4 | $ | 12 | ||||||||||||||
Interest cost | 422 | 852 | 1,274 | |||||||||||||||||
Expected return on plan assets | (637 | ) | (1,180 | ) | (1,817 | ) | ||||||||||||||
Amortization of net loss (gain) | 72 | 60 | 132 | |||||||||||||||||
Net periodic benefit cost | $ | (135 | ) | $ | (264 | ) | $ | (399 | ) | |||||||||||
Year Ended December 31, 2013 | ||||||||||||||||||||
Hourly Employees’ | Employees’ | Total | ||||||||||||||||||
(in thousands) | Pension Plan | Retirement Plan | ||||||||||||||||||
Service cost | $ | 11 | $ | 5 | $ | 16 | ||||||||||||||
Interest cost | 371 | 760 | 1,131 | |||||||||||||||||
Expected return on plan assets | (549 | ) | (1,018 | ) | (1,567 | ) | ||||||||||||||
Amortization of net loss (gain) | 285 | 418 | 703 | |||||||||||||||||
Net periodic benefit cost | $ | 118 | $ | 165 | $ | 283 | ||||||||||||||
Schedule of Allocation of Plan Assets | The pension plans' weighted-average asset allocations as a percentage of plan assets at December 31 are as follows: | |||||||||||||||||||
Hourly Employees’ | Employees’ Retirement | |||||||||||||||||||
Pension Plan | Plan | |||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||
Equity securities | 53% | 55% | 55% | 55% | ||||||||||||||||
Debt securities | 38% | 38% | 38% | 38% | ||||||||||||||||
Short-term investments | 5% | 2% | 3% | 2% | ||||||||||||||||
Other | 4% | 5% | 4% | 5% | ||||||||||||||||
Total | 100% | 100% | 100% | 100% | ||||||||||||||||
Fair Value, Assets Measured on Recurring Basis | The following table presents the hierarchy levels for our postretirement benefit plan investments as of December 31: | |||||||||||||||||||
December 31, 2014 | Quoted | |||||||||||||||||||
Prices in Active | Significant | Significant | ||||||||||||||||||
Markets for | Other | Unobservable | ||||||||||||||||||
Identical Assets | Observable | Inputs | ||||||||||||||||||
(in thousands) | (Level 1) | Inputs | (Level 3) | |||||||||||||||||
(Level 2) | ||||||||||||||||||||
Mutual Funds: | ||||||||||||||||||||
Mid Cap | $ | 1,642 | $ | 1,642 | $ | — | $ | — | ||||||||||||
Large Cap | 5,162 | 5,162 | ||||||||||||||||||
International | 2,985 | 2,985 | ||||||||||||||||||
Common/Collective: | ||||||||||||||||||||
Liability Driven Solution | 3,702 | 3,702 | ||||||||||||||||||
Wells Fargo International Equity Index Fund | 1,098 | 1,098 | ||||||||||||||||||
Wells Fargo Core Bond | 1,810 | 1,810 | ||||||||||||||||||
Wells Fargo/Causeway | 1,118 | 1,118 | ||||||||||||||||||
Wells Fargo Large Cap Growth Index Fund | 1,473 | 1,473 | ||||||||||||||||||
Wells Fargo Large Cap Value Index Fund | 1,476 | 1,476 | ||||||||||||||||||
Wells Fargo Multi-Manager Small Cap | 1,783 | 1,783 | ||||||||||||||||||
Wells Fargo Russell 2000 Index Fund | 860 | 860 | ||||||||||||||||||
Wells Fargo S&P Mid Cap Index Fund | 990 | 990 | ||||||||||||||||||
T. Rowe Price Equity Income | 1,310 | 1,310 | ||||||||||||||||||
Cash & Short-term Investments | 928 | 928 | ||||||||||||||||||
Total | $ | 26,337 | $ | 10,717 | $ | 15,620 | $ | — | ||||||||||||
December 31, 2013 | Quoted | |||||||||||||||||||
Prices in Active | Significant | |||||||||||||||||||
Markets for | Other | Significant | ||||||||||||||||||
Identical Assets | Observable | Unobservable | ||||||||||||||||||
(in thousands) | (Level 1) | Inputs | Inputs | |||||||||||||||||
(Level 2) | (Level 3) | |||||||||||||||||||
Mutual Funds: | ||||||||||||||||||||
Mid Cap | $ | 1,577 | $ | 1,577 | $ | — | $ | — | ||||||||||||
Large Cap | 6,826 | 6,826 | ||||||||||||||||||
International | 2,531 | 2,531 | ||||||||||||||||||
Common/Collective: | ||||||||||||||||||||
Wells Fargo Liability Driven Solution Fund | 3,521 | 3,521 | ||||||||||||||||||
Wells Fargo International Equity Index Fund | 1,286 | 1,286 | ||||||||||||||||||
Wells Fargo Thornburg International | 1,273 | 1,273 | ||||||||||||||||||
Wells Fargo Large Cap Growth Index Fund | 1,423 | 1,423 | ||||||||||||||||||
Wells Fargo Large Cap Value Index Fund | 1,427 | 1,427 | ||||||||||||||||||
Wells Fargo Multi-Manager Small Cap | 1,683 | 1,683 | ||||||||||||||||||
Wells Fargo Russell 2000 Index Fund | 841 | 841 | ||||||||||||||||||
Wells Fargo S&P Mid Cap Index Fund | 950 | 950 | ||||||||||||||||||
T Rowe Price Equity Income | 1,424 | 1,424 | ||||||||||||||||||
Cash & Short-term Investments | 512 | 512 | ||||||||||||||||||
Total | $ | 25,274 | $ | 11,446 | $ | 13,828 | $ | — | ||||||||||||
Schedule of Expected Benefit Payments | The following table illustrates the estimated pension benefit payments which reflect expected future service, as appropriate, that are projected to be paid: | |||||||||||||||||||
Hourly Employees’ | Employees’ | |||||||||||||||||||
(in thousands) | Pension Plan | Retirement Plan | Total | |||||||||||||||||
2015 | $ | 639 | $ | 887 | $ | 1,526 | ||||||||||||||
2016 | 641 | 933 | 1,574 | |||||||||||||||||
2017 | 648 | 1,026 | 1,674 | |||||||||||||||||
2018 | 656 | 1,120 | 1,776 | |||||||||||||||||
2019 | 665 | 1,153 | 1,818 | |||||||||||||||||
Years 2020 through 2024 | $ | 3,269 | $ | 6,368 | $ | 9,637 | ||||||||||||||
Supplemental Employee Retirement Plans, Defined Benefit | ||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||||||||||
Schedule of Assumptions Used | Assumptions used to determine benefit obligations at December 31: | |||||||||||||||||||
2014 | 2013 | |||||||||||||||||||
Discount rate | 3.70% | 4.60% | ||||||||||||||||||
Composite rate of compensation increase | 3.00% | 3.00% | ||||||||||||||||||
Assumptions used to determine net periodic benefit cost for the years ended December 31: | ||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||
Discount rate | 4.60% | 3.37% | ||||||||||||||||||
Composite rate of compensation increase | 3.00% | 3.00% | ||||||||||||||||||
Long-term rate of return on plan assets | N/A | N/A | ||||||||||||||||||
Schedule of Net Benefit Costs | The components of net periodic pension expense were as follows, in thousands: | |||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||
(in thousands) | 2014 | 2013 | ||||||||||||||||||
Service cost | $ | 152 | $ | 114 | ||||||||||||||||
Interest cost | 138 | 102 | ||||||||||||||||||
Amortization of prior service cost | 270 | 327 | ||||||||||||||||||
Net periodic benefit cost | $ | 560 | $ | 543 | ||||||||||||||||
Schedule of Expected Benefit Payments | Future estimated benefits expected to be paid from the plan over the next ten years as follows in thousands: | |||||||||||||||||||
2015 | $ | 62 | ||||||||||||||||||
2016 | 110 | |||||||||||||||||||
2017 | 149 | |||||||||||||||||||
2018 | 251 | |||||||||||||||||||
2019 | 252 | |||||||||||||||||||
Years 2020 through 2024 | $ | 1,411 | ||||||||||||||||||
Schedule of Defined Benefit Plans Disclosures | The change in the Projected Benefit Obligation (PBO) as of December 31, 2014 and 2013, is shown below, in thousands: | |||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||
(in thousands) | 2014 | 2013 | ||||||||||||||||||
Benefit obligation at January 1, | $ | 3,021 | $ | 3,057 | ||||||||||||||||
Service cost | 152 | 114 | ||||||||||||||||||
Interest cost | 138 | 102 | ||||||||||||||||||
Liability actuarial loss (gain) | 421 | (252 | ) | |||||||||||||||||
Plan amendments | — | — | ||||||||||||||||||
Benefit obligation at December 31, | $ | 3,732 | $ | 3,021 | ||||||||||||||||
Segment_Reporting_Tables
Segment Reporting (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Segment Reporting [Abstract] | ||||||||||||
Schedule of Segment Reporting Information, by Segment | The following table presents the revenues and income from operations by reporting segment for the years ended December 31, 2014, 2013 and 2012: | |||||||||||
December 31, | ||||||||||||
(in thousands) | 2014 | 2013 (1) | 2012 (1) | |||||||||
Net Revenue | ||||||||||||
North American Industrial | $ | 436,018 | $ | 297,857 | $ | 264,504 | ||||||
North American Agricultural | 214,326 | 219,354 | 203,945 | |||||||||
European | 188,711 | 164,879 | 164,582 | |||||||||
Consolidated | $ | 839,055 | $ | 682,090 | $ | 633,031 | ||||||
Income from Operations | ||||||||||||
North American Industrial | $ | 39,377 | $ | 25,743 | $ | 19,313 | ||||||
North American Agricultural | 11,714 | 17,880 | 18,319 | |||||||||
European | 11,573 | 7,114 | 7,717 | |||||||||
Consolidated | $ | 62,664 | $ | 50,737 | $ | 45,349 | ||||||
(1) As adjusted for the immaterial correction. See Note 1. | ||||||||||||
The following table presents the goodwill and total identifiable assets by reporting segment for the years ended December 31, 2014 and 2013: | ||||||||||||
(in thousands) | December 31, 2014 | December 31, 2013 | ||||||||||
Goodwill | ||||||||||||
Industrial | $ | 54,036 | $ | 13,176 | ||||||||
Agricultural | 695 | — | ||||||||||
European | 17,676 | 18,897 | ||||||||||
Consolidated | $ | 72,407 | $ | 32,073 | ||||||||
Total Identifiable Assets | ||||||||||||
Industrial | $ | 363,812 | $ | 161,080 | ||||||||
Agricultural | 113,286 | 123,352 | ||||||||||
European | 152,504 | 154,044 | ||||||||||
Consolidated | $ | 629,602 | $ | 438,476 | ||||||||
International_Operations_and_G1
International Operations and Geographic Information (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Segment Reporting [Abstract] | ||||||||||||
Reconciliation of Operating Profit (Loss) from Segments to Consolidated | Following is selected financial information on the Company’s international operations which include Europe, Canada and Australia: | |||||||||||
December 31, | ||||||||||||
(in thousands) | 2014 | 2013 | 2012 | |||||||||
Net sales | $ | 260,874 | $ | 236,839 | $ | 227,568 | ||||||
Income from operations | 15,840 | 14,822 | 14,470 | |||||||||
Income before income taxes | 17,315 | 16,241 | 13,731 | |||||||||
Identifiable assets | $ | 219,036 | $ | 205,317 | $ | 179,263 | ||||||
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas | Following is other selected geographic financial information on the Company’s operations: | |||||||||||
December 31, | ||||||||||||
(in thousands) | 2014 | 2013 | 2012 | |||||||||
Geographic net sales: | ||||||||||||
United States | $ | 571,817 | $ | 449,119 | $ | 405,761 | ||||||
United Kingdom | 58,976 | 36,892 | 40,735 | |||||||||
France | 93,699 | 97,959 | 92,964 | |||||||||
Canada | 54,087 | 45,212 | 36,366 | |||||||||
Australia | 13,702 | 11,519 | 10,232 | |||||||||
Other | 46,774 | 41,389 | 46,973 | |||||||||
Total net sales | $ | 839,055 | $ | 682,090 | $ | 633,031 | ||||||
Geographic location of long-lived assets: | ||||||||||||
United States | $ | 168,404 | $ | 42,053 | $ | 46,749 | ||||||
United Kingdom | 20,840 | 19,718 | 13,809 | |||||||||
France | 21,728 | 25,751 | 25,166 | |||||||||
Canada | 23,354 | 12,562 | 11,719 | |||||||||
Australia | 1,358 | 768 | 190 | |||||||||
Total long-lived assets | $ | 235,684 | $ | 100,852 | $ | 97,633 | ||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||
Contractual Obligation, Fiscal Year Maturity Schedule | As of December 31, 2014, future minimum lease payments under these non-cancelable leases and the present value of the net minimum lease payments for the capitalized leases are: | ||||||||
Operating | Capitalized | ||||||||
(in thousands) | Leases | Leases | |||||||
2015 | $ | 3,471 | $ | 37 | |||||
2016 | 2,680 | 19 | |||||||
2017 | 1,925 | 6 | |||||||
2018 | 1,061 | — | |||||||
2019 | 544 | — | |||||||
Thereafter | 513 | — | |||||||
Total minimum lease payments | $ | 10,194 | $ | 62 | |||||
Less amount representing interest | 3 | ||||||||
Present value of net minimum lease payments | $ | 59 | |||||||
Less current portion | 35 | ||||||||
Long-term portion | $ | 24 | |||||||
Quarterly_Financial_Informatio1
Quarterly Financial Information (Unaudited) (Tables) | 12 Months Ended | |||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||||||||||||
Schedule of Quarterly Financial Information | Summarized quarterly financial data for 2014 and 2013 are presented below. Seasonal influences affect the Company’s sales and profits, with peak business occurring in May through August. | |||||||||||||||||||||||||
(in thousands, except per share amounts) | ||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||
First | Second | Third | Fourth | First | Second | Third | Fourth | |||||||||||||||||||
Sales | $ | 172,610 | $ | 207,751 | $ | 234,783 | $ | 223,911 | $ | 159,786 | $ | 179,380 | $ | 176,182 | $ | 166,742 | ||||||||||
Gross profit | 38,130 | 47,286 | 55,440 | 48,372 | 34,912 | 44,091 | 43,156 | 36,351 | ||||||||||||||||||
Net income | 7,238 | 9,195 | 13,367 | 11,351 | 6,950 | 11,787 | 11,333 | 6,024 | ||||||||||||||||||
Earnings per share | ||||||||||||||||||||||||||
Diluted | $ | 0.59 | $ | 0.75 | $ | 1.1 | $ | 1 | $ | 0.57 | $ | 0.97 | $ | 0.93 | $ | 0.49 | ||||||||||
Average shares | ||||||||||||||||||||||||||
Diluted | 12,270 | 12,276 | 12,205 | 11,403 | 12,158 | 12,200 | 12,229 | 12,262 | ||||||||||||||||||
Dividends per share | $ | 0.07 | 0.07 | $ | 0.07 | $ | 0.07 | $ | 0.07 | $ | 0.07 | $ | 0.07 | $ | 0.07 | |||||||||||
Market price of | ||||||||||||||||||||||||||
common stock | ||||||||||||||||||||||||||
High | $ | 60.65 | $ | 57.86 | $ | 55.84 | $ | 52.13 | $ | 40.64 | $ | 44.13 | $ | 49.45 | $ | 61.27 | ||||||||||
Low | $ | 46.87 | $ | 49.5 | $ | 40.75 | $ | 37.93 | $ | 33.12 | $ | 37.39 | $ | 40.48 | $ | 45.51 | ||||||||||
Significant_Accounting_Policie3
Significant Accounting Policies (Narrative) (Details) (USD $) | 12 Months Ended | 3 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2015 | Feb. 03, 2006 | |
Reportable_Segment | Operation | Defined_Benefit_Plan | |||
Accounting Policies [Line Items] | |||||
Number of principal reporting segments | 3 | ||||
Outstanding forward exchange contracts related to sales | $2,527,000 | ||||
Goodwill, Balance at the beginning of the period | 32,073,000 | 31,648,000 | 31,751,000 | ||
Goodwill percentage of total assets | 12.00% | ||||
Goodwill impairment | 0 | 0 | 656,000 | ||
Number of operations | 1 | ||||
Hypothetical percentage decline in fair value of each reporting unit | 15.00% | ||||
Net book value of assets | 51,484,000 | 0 | |||
Number of defined benefit pension plans | 2 | ||||
Accumulated depreciation relating to rental equipment | 100,497,000 | 96,472,000 | |||
Book value of capitalized software | 1,370,000 | 944,000 | |||
Option term (years) | 10 years | ||||
Options | |||||
Accounting Policies [Line Items] | |||||
Award vesting period (years) | 5 years | ||||
Low | |||||
Accounting Policies [Line Items] | |||||
Estimated Useful Lives | 12 years | ||||
High | |||||
Accounting Policies [Line Items] | |||||
Estimated Useful Lives | 25 years | ||||
Period of lease agreement | 2 years | ||||
Rental Equipment | |||||
Accounting Policies [Line Items] | |||||
Accumulated depreciation relating to rental equipment | 3,435,000 | ||||
Software Development | |||||
Accounting Policies [Line Items] | |||||
Software depreciation | 556,000 | 488,000 | 676,000 | ||
Software Development | Low | |||||
Accounting Policies [Line Items] | |||||
Useful Lives | 3 years | ||||
Software Development | High | |||||
Accounting Policies [Line Items] | |||||
Useful Lives | 7 years | ||||
Hourly Employees’ Pension Plan | |||||
Accounting Policies [Line Items] | |||||
Former employees | 331 | ||||
Current employees | 125 | ||||
Employees’ Retirement Plan | |||||
Accounting Policies [Line Items] | |||||
Former employees | 238 | ||||
Current employees | 83 | ||||
Trade Names | |||||
Accounting Policies [Line Items] | |||||
Indefinite: | 5,500,000 | 5,500,000 | |||
Trade Names | Gradall | |||||
Accounting Policies [Line Items] | |||||
Indefinite: | 3,600,000 | ||||
Trade Names | Bush Hog | |||||
Accounting Policies [Line Items] | |||||
Indefinite: | 1,900,000 | ||||
Other income (expense) | |||||
Accounting Policies [Line Items] | |||||
Foreign currency transaction gains | 503,000 | 921,000 | -476,000 | ||
Selling, General and Administrative expenses | |||||
Accounting Policies [Line Items] | |||||
Advertising expense | 7,368,000 | 6,646,000 | 6,353,000 | ||
Product development and engineering costs | 8,427,000 | 7,164,000 | 5,686,000 | ||
Scenario, Forecast | |||||
Accounting Policies [Line Items] | |||||
Unrealized gain of contracts | -27,000 | ||||
Correction of Misclassification of Freight Revenue | |||||
Accounting Policies [Line Items] | |||||
Increase in sales and cost of sales | 5,300,000 | 4,600,000 | |||
Freight allowances | $5,500,000 |
Significant_Accounting_Policie4
Significant Accounting Policies (Schedule of Fair Value Assumptions and Methodology) (Details) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Accounting Policies [Abstract] | |||
Risk-free interest rate | 2.24% | 1.38% | 1.44% |
Dividend yield | 0.50% | 0.80% | 1.20% |
Volatility factors | 48.20% | 47.90% | 46.70% |
Weighted-average expected life | 8 years | 8 years | 8 years |
Acquisitions_and_Investments_N
Acquisitions and Investments (Narrative) (Details) (USD $) | 0 Months Ended | 8 Months Ended | 3 Months Ended | ||||
13-May-14 | Dec. 31, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | 12-May-14 | |
Aquisition | |||||||
Business Acquisition [Line Items] | |||||||
Goodwill | $72,407,000 | $32,073,000 | $31,648,000 | $31,751,000 | |||
North American Industrial | |||||||
Business Acquisition [Line Items] | |||||||
Goodwill | 54,036,000 | 13,176,000 | |||||
Specialized Industries LP | |||||||
Business Acquisition [Line Items] | |||||||
Total consideration transferred | 193,000,000 | ||||||
Period for post closing adjustments | 90 days | ||||||
New borrowings under the amended credit facility | 190,000,000 | ||||||
Accounts payable | 4,100,000 | ||||||
Goodwill | 41,327,000 | ||||||
Goodwill that is tax deductible | 6,500,000 | ||||||
Acquisition costs incurred | 1,800,000 | ||||||
Net sales generated by Specialized business units | 107,400,000 | ||||||
Net income generated by Specialized business units | 5,100,000 | ||||||
Specialized Industries LP | North American Industrial | |||||||
Business Acquisition [Line Items] | |||||||
Goodwill | 41,300,000 | ||||||
Series of Individually Immaterial Business Acquisitions | |||||||
Business Acquisition [Line Items] | |||||||
Total consideration transferred | 5,594,000 | ||||||
Number of acquisitions | 2 | ||||||
Revolving Credit Facility | Amended and Restated Revolving Credit Agreement | Specialized Industries LP | |||||||
Business Acquisition [Line Items] | |||||||
Line of credit | $250,000,000 | $100,000,000 |
Acquisitions_and_Investments_S
Acquisitions and Investments (Schedule of Assets Acquired and Liabilities Assumed) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | 13-May-14 |
In Thousands, unless otherwise specified | |||||
Business Acquisition [Line Items] | |||||
Goodwill | $72,407 | $32,073 | $31,648 | $31,751 | |
Specialized Industries LP | |||||
Business Acquisition [Line Items] | |||||
Cash | 2,025 | ||||
Accounts receivable | 16,290 | ||||
Inventory | 47,500 | ||||
Prepaid expenses | 3,223 | ||||
Deferred income tax assets | 1,554 | ||||
Rental equipment | 28,446 | ||||
Property, plant & equipment | 13,214 | ||||
Intangible assets | 53,900 | ||||
Other assets | 675 | ||||
Deferred income tax liabilities | -4,293 | ||||
Other liabilities assumed | -10,962 | ||||
Net assets assumed | 151,572 | ||||
Goodwill | 41,327 | ||||
Acquisition Price | $192,899 |
Acquisitions_and_Investments_S1
Acquisitions and Investments (Schedule of Definite Lived Intangible Assets Acquired) (Details) (USD $) | 0 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | 13-May-14 | Dec. 31, 2014 |
Specialized Industries LP | ||
Business Acquisition [Line Items] | ||
Value at Acquisition | $53,900 | |
Trade names and trademarks | ||
Business Acquisition [Line Items] | ||
Value at Acquisition | 21,548 | |
Trade names and trademarks | Specialized Industries LP | ||
Business Acquisition [Line Items] | ||
Estimated Useful Lives | 25 years | |
Value at Acquisition | 22,200 | |
Customer and dealer relationships | ||
Business Acquisition [Line Items] | ||
Value at Acquisition | 28,068 | |
Customer and dealer relationships | Specialized Industries LP | ||
Business Acquisition [Line Items] | ||
Estimated Useful Lives | 14 years | |
Value at Acquisition | 29,700 | |
Patents and drawings | ||
Business Acquisition [Line Items] | ||
Value at Acquisition | 1,868 | |
Patents and drawings | Specialized Industries LP | ||
Business Acquisition [Line Items] | ||
Estimated Useful Lives | 12 years | |
Value at Acquisition | $2,000 |
Acquisitions_and_Investments_S2
Acquisitions and Investments (Schedule of Unaudited Proforma Information) (Details) (Specialized Industries LP, USD $) | 12 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Specialized Industries LP | ||
Business Acquisition [Line Items] | ||
Net sales | $882,568 | $828,809 |
Net income | $42,575 | $37,306 |
Diluted earnings per share | $3.54 | $3.05 |
Earnings_Per_Share_Calculation
Earnings Per Share (Calculation of Basic and Diluted EPS) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Earnings Per Share [Abstract] | |||||||||||
Net income | $11,351 | $13,367 | $9,195 | $7,238 | $6,024 | $11,333 | $11,787 | $6,950 | $41,151 | $36,094 | $28,903 |
Average common shares: | |||||||||||
Basic (weighted-average outstanding shares) | 11,875,000 | 12,050,000 | 11,899,000 | ||||||||
Dilutive potential common shares from stock options, shares | 164,000 | 162,000 | 159,000 | ||||||||
Diluted (weighted-average outstanding shares) | 11,403,000 | 12,205,000 | 12,276,000 | 12,270,000 | 12,262,000 | 12,229,000 | 12,200,000 | 12,158,000 | 12,039,000 | 12,212,000 | 12,058,000 |
Basic earnings per share (in dollars per share) | $3.47 | $3 | $2.43 | ||||||||
Diluted earnings per share (in dollars per share) | $1 | $1.10 | $0.75 | $0.59 | $0.49 | $0.93 | $0.97 | $0.57 | $3.42 | $2.96 | $2.40 |
Stock options excluded from diluted earnings per share calculation (shares) | 37,261 | 3,831 | 38,954 |
Valuation_and_Qualifying_Accou2
Valuation and Qualifying Accounts (Schedule of Valuation and Qualifying Accounts) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Allowance for doubtful accounts | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance Beginning of Year | $2,738 | $3,077 | $3,215 |
Net Charged to Costs and Expenses | 469 | 31 | 253 |
Translations, Reclassifications and Acquisitions | -153 | 62 | 113 |
Net Write-Offs or Discounts Taken | -201 | -432 | -504 |
Balance End of Year | 2,853 | 2,738 | 3,077 |
Reserve for sales discounts | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance Beginning of Year | 16,724 | 15,005 | 14,567 |
Net Charged to Costs and Expenses | 79,877 | 76,184 | 65,481 |
Translations, Reclassifications and Acquisitions | -98 | 0 | -16 |
Net Write-Offs or Discounts Taken | -80,504 | -74,465 | -65,027 |
Balance End of Year | 15,999 | 16,724 | 15,005 |
Reserve for inventory obsolescence | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance Beginning of Year | 8,596 | 9,099 | 7,630 |
Net Charged to Costs and Expenses | 2,938 | 2,586 | 2,998 |
Translations, Reclassifications and Acquisitions | -297 | -157 | 79 |
Net Write-Offs or Discounts Taken | -3,636 | -2,932 | -1,608 |
Balance End of Year | 7,601 | 8,596 | 9,099 |
Reserve for warranty | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance Beginning of Year | 4,994 | 5,007 | 5,083 |
Net Charged to Costs and Expenses | 7,467 | 6,410 | 6,646 |
Translations, Reclassifications and Acquisitions | 843 | 80 | 82 |
Net Write-Offs or Discounts Taken | -7,391 | -6,503 | -6,804 |
Balance End of Year | $5,913 | $4,994 | $5,007 |
Valuation_and_Qualifying_Accou3
Valuation and Qualifying Accounts (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | 13-May-14 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Receivables aging period | 60 days | ||
Accounts receivable reserve period | 90 days | ||
Allowance for doubtful accounts | $2,853 | $2,738 | |
Reserves for sales discounts | 15,999 | 16,724 | |
Inventory obsolescence reserves | 7,601 | 8,596 | |
Inventory usage period | 3 years | ||
Inventory reserve percentage | 100.00% | ||
Product warranty accrual period of expenses used in calculation | 12 months | ||
Product warranty accrual period for sales used in calculation | 12 months | ||
Warranty | 5,913 | 4,994 | |
Specialized Industries LP | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Increase in warranty reserve from acquisition of Specialized | $1,006 | ||
Wholegood Units | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Product warranty period | 1 year | ||
Parts | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Product warranty period | 90 days | ||
Minimum | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Sales discount percentage of customers who qualify for each program that discount available | 90.00% | ||
Product warranty accrual lag period | 90 days | ||
Maximum | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Sales discount percentage of customers who qualify for each program that discount available | 95.00% | ||
Product warranty accrual lag period | 6 months |
Inventories_Narrative_Details
Inventories (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Inventory Disclosure [Abstract] | |||
Percentage of LIFO inventory | 37.00% | 55.00% | |
Excess of current costs over stated LIFO value | $10,230 | $9,483 | |
LIFO reserve impact on earnings | ($747) | ($508) | $484 |
Inventories_Schedule_of_Invent
Inventories (Schedule of Inventory, Current) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ||
Finished goods and parts | $112,197 | $84,548 |
Work in process | 18,635 | 9,906 |
Raw materials | 35,256 | 14,650 |
Inventory, Net | $166,088 | $109,104 |
Property_Plant_and_Equipment_S
Property Plant and Equipment (Schedule of Property Plant and Equipment) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | $171,667 | $158,376 |
Less: Accumulated depreciation | -100,497 | -96,472 |
Property, Plant and Equipment, Net | 71,170 | 61,904 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | 9,181 | 8,708 |
Buildings and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | 72,514 | 62,169 |
Buildings and improvements | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Useful Lives | 5 years | |
Buildings and improvements | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Useful Lives | 20 years | |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | 66,799 | 65,451 |
Machinery and equipment | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Useful Lives | 3 years | |
Machinery and equipment | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Useful Lives | 10 years | |
Office furniture and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | 6,254 | 6,705 |
Office furniture and equipment | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Useful Lives | 3 years | |
Office furniture and equipment | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Useful Lives | 7 years | |
Computer software | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | 11,283 | 10,557 |
Computer software | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Useful Lives | 3 years | |
Computer software | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Useful Lives | 7 years | |
Transportation equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | $5,636 | $4,786 |
Useful Lives | 3 years |
Property_Plant_and_Equipment_N
Property Plant and Equipment (Narrative) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Abstract] | ||
Capital leases | $412 | $7,246 |
Accumulated depreciation related to capital leases | ($308) | ($4,749) |
Goodwill_Schedule_of_Goodwill_
Goodwill (Schedule of Goodwill) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Goodwill [Roll Forward] | |||
Goodwill, Balance at the beginning of the period | $32,073 | $31,648 | $31,751 |
Translation adjustment | -2,217 | 425 | 553 |
Goodwill impairment | 0 | 0 | -656 |
Goodwill acquired | 42,551 | ||
Goodwill, balance at the end of the period | $72,407 | $32,073 | $31,648 |
Definite_and_Indefinite_Lived_2
Definite and Indefinite Lived Intangible Assets (Schedule of Definite and Indefinite Lived Intangible Assets) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Schedule of Acquired Indefinite-lived and Finite Intangible Assets by Major Class [Line Items] | ||
Definite: | $53,476 | $0 |
Less accumulated amortization | 1,992 | 0 |
Total net | 51,484 | 0 |
Intangible assets, net | 56,984 | 5,500 |
Trade names and trademarks | ||
Schedule of Acquired Indefinite-lived and Finite Intangible Assets by Major Class [Line Items] | ||
Indefinite: | 5,500 | 5,500 |
Trade names and trademarks | ||
Schedule of Acquired Indefinite-lived and Finite Intangible Assets by Major Class [Line Items] | ||
Estimated Useful Lives | 25 years | |
Definite: | 22,104 | 0 |
Less accumulated amortization | 556 | |
Customer and dealer relationships | ||
Schedule of Acquired Indefinite-lived and Finite Intangible Assets by Major Class [Line Items] | ||
Estimated Useful Lives | 14 years | |
Definite: | 29,404 | 0 |
Less accumulated amortization | 1,336 | |
Patents and drawings | ||
Schedule of Acquired Indefinite-lived and Finite Intangible Assets by Major Class [Line Items] | ||
Estimated Useful Lives | 12 years | |
Definite: | 1,968 | 0 |
Less accumulated amortization | $100 |
Definite_and_Indefinite_Lived_3
Definite and Indefinite Lived Intangible Assets (Narrative) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Schedule of Acquired Indefinite-lived and Finite Intangible Assets by Major Class [Line Items] | ||
Less accumulated amortization | $1,992 | $0 |
2015 | 3,176 | |
2016 | 3,176,000 | |
2017 | 3,176,000 | |
2018 | 3,176,000 | |
2019 | 3,176,000 | |
Trade names and trademarks | ||
Schedule of Acquired Indefinite-lived and Finite Intangible Assets by Major Class [Line Items] | ||
Indefinite: | 5,500 | 5,500 |
Trade names and trademarks | ||
Schedule of Acquired Indefinite-lived and Finite Intangible Assets by Major Class [Line Items] | ||
Value at Acquisition | 21,548 | |
Less accumulated amortization | 556 | |
Customer and dealer relationships | ||
Schedule of Acquired Indefinite-lived and Finite Intangible Assets by Major Class [Line Items] | ||
Value at Acquisition | 28,068 | |
Less accumulated amortization | 1,336 | |
Patents and drawings | ||
Schedule of Acquired Indefinite-lived and Finite Intangible Assets by Major Class [Line Items] | ||
Value at Acquisition | 1,868 | |
Less accumulated amortization | $100 |
Accrued_Liabilities_Details
Accrued Liabilities (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Payables and Accruals [Abstract] | ||
Salaries, wages and bonuses | $20,635 | $15,509 |
Warranty | 5,913 | 4,994 |
State taxes | 3,997 | 5,217 |
Other | 10,457 | 7,762 |
Accrued liabilities | $41,002 | $33,482 |
LongTerm_Debt_Schedule_of_Long
Long-Term Debt (Schedule of Long Term Debt) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Debt Instrument [Line Items] | ||
Total debt | $190,575 | $428 |
Current maturities of long-term debt and capital lease obligations | 551 | 420 |
Long-term debt and capital lease obligation, net of current maturities | 190,024 | 8 |
Bank revolving credit facility | Amended and Restated Revolving Credit Agreement | ||
Debt Instrument [Line Items] | ||
Total debt | 190,000 | 0 |
Capital lease obligations | ||
Debt Instrument [Line Items] | ||
Total debt | 59 | 120 |
Other notes payable | ||
Debt Instrument [Line Items] | ||
Total debt | $516 | $308 |
LongTerm_Debt_Narrative_Detail
Long-Term Debt (Narrative) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | 13-May-14 | 12-May-14 |
Debt Instrument [Line Items] | ||||
Amount outstanding under revolving credit facility | $190,575,000 | $428,000 | ||
2015 | 516,000 | |||
2016 | 0 | |||
2017 | 0 | |||
2018 | 0 | |||
2019 | 190,000,000 | |||
Thereafter | 0 | |||
Bank revolving credit facility | Amended and Restated Revolving Credit Agreement | ||||
Debt Instrument [Line Items] | ||||
Aggregate commitments | 250,000,000 | |||
Maximum amount of aggregate commitments (up to $50,000,000) | 50,000,000 | |||
Amount outstanding under revolving credit facility | 190,000,000 | 0 | ||
Weighted average interest rate | 2.50% | |||
Available borrowings | 58,910,000 | |||
Bank revolving credit facility | Amended and Restated Revolving Credit Agreement | Standby Letters of Credit | ||||
Debt Instrument [Line Items] | ||||
Amount of capacity | 1,090,000 | |||
Specialized Industries LP | Amended and Restated Revolving Credit Agreement | Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Line of credit | $250,000,000 | $100,000,000 |
Income_Taxes_Schedule_of_Incom
Income Taxes (Schedule of Income (loss) before Provision for Income Taxes) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||
Domestic | $43,345 | $35,146 | $29,390 |
Foreign | 17,260 | 16,242 | 14,056 |
Income before income taxes | $60,605 | $51,388 | $43,446 |
Income_Taxes_Schedule_of_Compo
Income Taxes (Schedule of Components of Income Tax Expense (Benefit)) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Current: | |||
Domestic | $13,495 | $10,605 | $9,273 |
Foreign | 3,382 | 3,200 | 4,919 |
State | 2,685 | 2,366 | 756 |
Provision for current income tax expense (benefit) | 19,562 | 16,171 | 14,948 |
Deferred: | |||
Domestic | -600 | -1,074 | -192 |
Foreign | 540 | 249 | -363 |
State | -48 | -52 | 150 |
Provision for deferred income tax expense (benefit) | -108 | -877 | -405 |
Total income taxes | $19,454 | $15,294 | $14,543 |
Income_Taxes_Narrative_Details
Income Taxes (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Operating Loss Carryforwards [Line Items] | |||
Federal statutory rate | 35.00% | 35.00% | 35.00% |
Undistributed earnings of foreign subsidiaries | $151,868 | ||
Additional unrecognized tax benefit that would affect our annual effective tax rate | 388 | 146 | |
Federal | |||
Operating Loss Carryforwards [Line Items] | |||
Federal statutory rate | 35.00% | ||
Foreign | |||
Operating Loss Carryforwards [Line Items] | |||
Net operating loss carryforwards | 4,600 | ||
State | |||
Operating Loss Carryforwards [Line Items] | |||
Net operating loss carryforwards | $27 |
Income_Taxes_Income_Tax_Reconc
Income Taxes (Income Tax Reconciliation) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Income Tax Disclosure [Abstract] | |||
Federal statutory rate | 35.00% | 35.00% | 35.00% |
Domestic statutory rate at 35% | $21,212,000 | $17,985,000 | $15,206,000 |
Increase (reduction) from: | |||
Jurisdictional rate differences | -2,119,000 | -1,959,000 | -1,477,000 |
Goodwill impairment | 0 | 0 | 157,000 |
Valuation allowance | 353,000 | -114,000 | 825,000 |
Stock based compensation | 199,000 | 136,000 | 214,000 |
U.S. state taxes | 1,649,000 | 1,496,000 | 589,000 |
Domestic production deduction | -1,321,000 | -1,162,000 | -948,000 |
R&E credit | -614,000 | -856,000 | -130,000 |
Other, net | 95,000 | -232,000 | 107,000 |
Total income taxes | $19,454,000 | $15,294,000 | $14,543,000 |
Effective tax rate | 32.00% | 30.00% | 33.00% |
Income_Taxes_Schedule_of_Defer
Income Taxes (Schedule of Deferred Tax Assets and Liabilities) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Deferred income tax assets: | ||
Inventory basis difference | $1,051 | $1,576 |
Accounts receivable reserve | 394 | 201 |
Stock based compensation | 1,284 | 904 |
Pension liability | 3,018 | 1,604 |
Employee benefit accrual | 1,448 | 601 |
Product liability and warranty reserves | 1,480 | 1,417 |
Expenses not currently deductible for tax purposes | 410 | 1,064 |
Foreign net operating loss | 1,379 | 2,954 |
State net operating loss | 10 | 76 |
Other | 0 | 34 |
Total deferred income tax assets | 10,474 | 10,431 |
Less: Valuation allowance | -1,064 | -711 |
Net deferred income tax assets | 9,410 | 9,720 |
Deferred income tax liabilities: | ||
Depreciation | -2,786 | -3,068 |
Intangible assets | -2,144 | -1,277 |
Deferred revenue | 38 | -66 |
Expenses not currently deductible for tax purposes | -356 | -461 |
Total deferred income tax liabilities | -5,248 | -4,872 |
Net deferred income tax assets | $4,162 | $4,848 |
Income_Taxes_Income_Taxes_Sche
Income Taxes Income Taxes (Schedule of Unrecognized Tax Benefits) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Balance as of beginning of year | $146 | $257 |
Additions for tax positions related to the current year | 63 | 56 |
Additions for tax positions related to prior years | 262 | 27 |
Reduction due to lapse of statute of limitations | -83 | -194 |
Balance as of end of year | $388 | $146 |
Common_Stock_Details
Common Stock (Details) (USD $) | 3 Months Ended | 12 Months Ended | 0 Months Ended | ||||||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jan. 30, 2015 | Jan. 02, 2015 | Sep. 25, 2014 | Sep. 24, 2014 | |
Class of Stock [Line Items] | |||||||||||||||
Authorized shares to be repurchased | 1,000,000 | 1,000,000 | |||||||||||||
Shares previously purchased | 42,600 | ||||||||||||||
Dividends declared (in dollars per share) | $0.07 | $0.07 | $0.07 | $0.07 | $0.07 | $0.07 | $0.07 | $0.07 | $0.28 | $0.28 | $0.24 | ||||
Subsequent Event | |||||||||||||||
Class of Stock [Line Items] | |||||||||||||||
Dividends declared (in dollars per share) | $0.08 | ||||||||||||||
Dividends paid (in dollars per share) | $0.08 | ||||||||||||||
Share Repurchase Agreement with Capital Southwest Corporation and Capital Southwest Venture Corporation | |||||||||||||||
Class of Stock [Line Items] | |||||||||||||||
Authorized shares to be repurchased | 849,690 | ||||||||||||||
Purchase price per share | $40.26 | ||||||||||||||
Share Price (in dollars per share) | $41.50 | ||||||||||||||
Retirement of shares (shares) | 849,690 |
Stock_Options_Narrative_Detail
Stock Options (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period (years) | 1 year | ||
Qualified Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted | 48,250 | 49,000 | 61,000 |
Weighted average grant date fair value of options granted | $27.23 | $20.56 | $14.76 |
Total unrecognized compensation cost related to non-vested share-based compensation arrangements | $1,673 | ||
Period cost is expected to be recognized (years) | 5 years | ||
Exercise of stock options, shares | 27,700 | 81,880 | 99,650 |
Non Qualified Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted | 29,000 | 25,000 | 0 |
Award vesting period (years) | 1 year | ||
Weighted average grant date fair value of options granted | $27.72 | $20.56 | |
Total unrecognized compensation cost related to non-vested share-based compensation arrangements | 115 | ||
Period cost is expected to be recognized (years) | 5 years | ||
Exercise of stock options, shares | 11,600 | 0 | 23,100 |
Proceeds from stock options exercised | 270 | 0 | 315 |
Tax deductions from the exercise of stock options | 262 | 0 | 284 |
Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Annual vesting percentage of award | 25.00% | ||
Total unrecognized compensation cost related to non-vested share-based compensation arrangements | $121 | ||
Period cost is expected to be recognized (years) | 4 years | ||
Weighted average remaining contractual life (years) | 2 years 4 months 21 days | 2 years 1 month 2 days | 2 years 7 months 24 days |
2005 Incentive Stock Option Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted | 48,250 | 49,000 | 61,000 |
Annual vesting percentage of award | 20.00% | ||
2005 Incentive Stock Option Plan | Qualified Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares of common stock reserved for options to be issued | 500,000 | ||
2009 Equity Incentive Plan | Non Qualified Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares of common stock reserved for options to be issued | 400,000 | ||
Annual vesting percentage of award | 20.00% |
Stock_Options_Schedule_of_Qual
Stock Options (Schedule of Qualified Stock Option Activity) (Details) (Qualified Stock Options, USD $) | 12 Months Ended | |||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||||
Qualified Stock Options | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||||
Options outstanding at beginning of year | 292,350 | 330,730 | 377,480 | |||
Granted | 48,250 | 49,000 | 61,000 | |||
Exercised | -27,700 | -81,880 | -99,650 | |||
Canceled | -11,100 | -5,500 | -8,100 | |||
Options outstanding at end of year | 301,800 | 292,350 | 330,730 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | ||||||
Outstanding at beginning of year, Exercise Price, in dollars per share | $26.68 | [1] | $21.82 | [1] | $19.27 | [1] |
Granted, Exercise Price, in dollars per share | $52.67 | [1] | $42.70 | [1] | $32.76 | [1] |
Exercised, Exercise Price, in dollars per share | $24.33 | [1] | $16.77 | [1] | $19.26 | [1] |
Cancelled, Exercise Price, in dollars per share | $35.42 | [1] | $24.24 | [1] | $17.20 | [1] |
Outstanding at end of year, Exercise Price, in dollars per share | $30.73 | [1] | $26.68 | [1] | $21.82 | [1] |
Options exercisable at end of year | 172,450 | 154,950 | 192,830 | |||
Exercisable at end of year, Exercise Price, in dollars per share | $22.30 | [1] | $21.57 | [1] | $19.48 | [1] |
Options available for grant at end of year | 28,950 | 66,100 | 109,600 | |||
[1] | Weighted Averages |
Stock_Options_Schedule_of_Qual1
Stock Options (Schedule of Qualified Stock Options Outstanding and Exercisable) (Details) (Qualified Stock Options, USD $) | 12 Months Ended | ||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||||
Options Outstanding, Shares, Total | 301,800 | 292,350 | 330,730 | 377,480 | |
Options Exercisable, Shares, Total | 172,450 | 154,950 | 192,830 | ||
$11.45 - $19.79 | |||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||||
Range of Exercise Price, Lower Range Limit | $11.45 | ||||
Range of Exercise Price, Upper Range Limit | $19.79 | ||||
Options Outstanding, Shares | 56,550 | ||||
Options Outstanding, Remaining Contractual Life | 3 years 11 months 5 days | [1] | |||
Options, Outstanding, Exercise Price | $12.33 | [1] | |||
Options Exercisable, Shares | 56,550 | ||||
Options Exercisable, Exercise Price | $12.33 | [1] | |||
$22.39 - $42.70 | |||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||||
Range of Exercise Price, Lower Range Limit | $22.39 | ||||
Range of Exercise Price, Upper Range Limit | $42.70 | ||||
Options Outstanding, Shares | 197,500 | ||||
Options Outstanding, Remaining Contractual Life | 5 years 8 months 27 days | [1] | |||
Options, Outstanding, Exercise Price | $30.70 | [1] | |||
Options Exercisable, Shares | 115,900 | ||||
Options Exercisable, Exercise Price | $27.16 | [1] | |||
$49.44 - $53.51 | |||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||||
Range of Exercise Price, Lower Range Limit | $49.44 | ||||
Range of Exercise Price, Upper Range Limit | $53.51 | ||||
Options Outstanding, Shares | 47,750 | ||||
Options Outstanding, Remaining Contractual Life | 9 years 5 months 1 day | [1] | |||
Options, Outstanding, Exercise Price | $52.66 | [1] | |||
Options Exercisable, Shares | 0 | ||||
Options Exercisable, Exercise Price | $0 | [1] | |||
[1] | Weighted Averages |
Stock_Options_Schedule_of_NonQ
Stock Options (Schedule of Non-Qualified Stock Options Activity) (Details) (Non Qualified Options, USD $) | 12 Months Ended | |||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||||
Non Qualified Options | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||||
Options outstanding at beginning of year | 114,700 | 89,700 | 112,800 | |||
Granted | 29,000 | 25,000 | 0 | |||
Exercised | -11,600 | 0 | -23,100 | |||
Canceled | 0 | 0 | 0 | |||
Options outstanding at end of year | 132,100 | 114,700 | 89,700 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | ||||||
Outstanding at beginning of year, Exercise Price, in dollars per share | $24.87 | [1] | $19.91 | [1] | $18.62 | [1] |
Granted, Exercise Price, in dollars per share | $53.51 | [1] | $42.70 | [1] | $0 | [1] |
Exercised, Exercise Price, in dollars per share | $23.29 | [1] | $0 | [1] | $13.62 | [1] |
Cancelled, Exercise Price, in dollars per share | $0 | [1] | $0 | [1] | $0 | [1] |
Outstanding at end of year, Exercise Price, in dollars per share | $31.30 | [1] | $24.87 | [1] | $19.91 | [1] |
Options exercisable at end of year | 71,100 | 57,900 | 38,100 | |||
Exercisable at end of year, Exercise Price, in dollars per share | $19.85 | [1] | $19.89 | [1] | $21.91 | [1] |
Options available for grant at end of year | 258,526 | 293,526 | 322,750 | |||
[1] | Weighted Averages |
Stock_Options_Schedule_of_NonQ1
Stock Options (Schedule of Non-Qualified Stock Options Outstanding and Exercisable) (Details) (Non Qualified Options, USD $) | 12 Months Ended | ||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||||
Options Outstanding, Shares, Total | 132,100 | 114,700 | 89,700 | 112,800 | |
Options Exercisable, Shares, Total | 71,100 | 57,900 | 38,100 | ||
$11.45 | |||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||||
Range of Exercise Price, Lower Range Limit | $11.45 | ||||
Options Outstanding, Shares | 35,600 | ||||
Options Outstanding, Remaining Contractual Life | 4 years 4 months 10 days | [1] | |||
Options Outstanding, Exercise Price | $11.45 | [1] | |||
Options Exercisable, Shares | 35,600 | ||||
Options Exercisable, Exercise Price | $11.45 | [1] | |||
$22.39 - $42.70 | |||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||||
Range of Exercise Price, Lower Range Limit | $22.39 | ||||
Range of Exercise Price, Upper Range Limit | $42.70 | ||||
Options Outstanding, Shares | 67,500 | ||||
Options Outstanding, Remaining Contractual Life | 6 years 3 months 29 days | [1] | |||
Options Outstanding, Exercise Price | $32.23 | [1] | |||
Options Exercisable, Shares | 35,500 | ||||
Options Exercisable, Exercise Price | $28.28 | [1] | |||
$53.51 | |||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||||
Range of Exercise Price, Upper Range Limit | $53.51 | ||||
Options Outstanding, Shares | 29,000 | ||||
Options Outstanding, Remaining Contractual Life | 9 years 4 months 13 days | [1] | |||
Options Outstanding, Exercise Price | $53.51 | [1] | |||
Options Exercisable, Shares | 0 | ||||
Options Exercisable, Exercise Price | $0 | [1] | |||
[1] | Weighted Averages |
Stock_Options_Schedule_of_Rest
Stock Options (Schedule of Restricted Stock Award Activity) (Details) (Restricted Stock, USD $) | 12 Months Ended | |||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||||
Restricted Stock | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||||
Outstanding at beginning of year, Shares | 10,724 | 11,375 | 19,750 | |||
Granted, Shares | 6,000 | 4,224 | 0 | |||
Exercised, Shares | -4,681 | -4,875 | -6,125 | |||
Cancelled, Shares | 0 | 0 | -2,250 | |||
Outstanding at end of year, Shares | 12,043 | 10,724 | 11,375 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Intrinsic Value [Roll Forward] | ||||||
Outstanding at beginning of year, Price | $32.49 | [1] | $24.24 | [1] | $22.96 | [1] |
Granted, Price | $53.51 | [1] | $42.70 | [1] | $0 | [1] |
Exercised, Price | $29.56 | [1] | $22.07 | [1] | $21.13 | [1] |
Cancelled, Price | $0 | [1] | $0 | [1] | $21.45 | [1] |
Outstanding at end of year, Price | $44.10 | [1] | $32.49 | [1] | $24.24 | [1] |
[1] | Weighted Averages |
Retirement_Benefit_Plans_Narra
Retirement Benefit Plans (Narrative) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Estimate of amount of unrecognized actuarial expense | $649,000 | ||
Other | 0 | 34,000 | |
Accumulated other comprehensive income | -16,359,000 | 3,038,000 | |
Number of defined contribution plans | 3 | ||
United States | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Annual contribution amount | 1,466,000 | 1,331,000 | 1,678,000 |
Non-US | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Number of defined contribution plans | 3 | ||
Annual contribution amount | 806,000 | 697,000 | 696,000 |
IAM Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Annual contribution amount | 378,000 | 422,000 | |
Supplemental Employee Retirement Plans, Defined Benefit | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Estimate of amount of unrecognized actuarial expense | 342,000 | ||
SERP credited service period | 10 years | ||
Percentage of final 3 year average salary in which retirement benefit is based (percentage) | 20.00% | ||
Number of final years in which the Retirement Benefit is based | 3 years | ||
Retirement age | 65 years | ||
Period of time that vested retirement benefit will be paid after death or change in control | 90 days | ||
Years of monthly installments associated with SERP disability | 15 years | ||
SERP unfunded long-term liability | 1,964,301 | ||
Other | 746,000 | ||
Accumulated other comprehensive income | 1,218,301 | ||
Prior service cost that will be amortized over the remaining service periods | $1,964,301 | ||
Hourly Employees’ Pension Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Former employees | 331 | ||
Current employees | 125 | ||
Employees’ Retirement Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Former employees | 238 | ||
Current employees | 83 | ||
Minimum | Non-US | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Employer contribution percentage | 3.00% | ||
Maximum | Non-US | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Employer contribution percentage | 10.00% |
Retirement_Benefit_Plans_Sched
Retirement Benefit Plans (Schedule of Changes in Plan Assets, Changes in Projected Benefit Obligation, Rate Assumptions, and Components of Net Periodic Benefit Costs) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Change in fair value of plan assets | ||
Fair value of plan assets at end of year | $26,337 | $25,274 |
Pension Plans, Defined Benefit | ||
Change in projected benefit obligation | ||
Benefit obligation at beginning of year | 27,812 | 31,709 |
Service cost | 12 | 16 |
Interest cost | 1,274 | 1,131 |
Liability actuarial loss (gain) | 4,352 | -3,680 |
Benefits paid | -1,399 | -1,364 |
Benefit obligation at end of year | 32,051 | 27,812 |
Change in fair value of plan assets | ||
Fair value of plan assets at beginning of year | 25,274 | 21,838 |
Return on plan assets | 1,262 | 3,226 |
Employer contributions | 1,200 | 1,574 |
Benefits paid | -1,399 | -1,364 |
Fair value of plan assets at end of year | 26,337 | 25,274 |
Underfunded status – December 31, 2014 | -5,714 | -2,538 |
Supplemental Employee Retirement Plans, Defined Benefit | ||
Change in projected benefit obligation | ||
Benefit obligation at beginning of year | 3,021 | 3,057 |
Service cost | 152 | 114 |
Interest cost | 138 | 102 |
Liability actuarial loss (gain) | 421 | -252 |
Plan amendments | 0 | 0 |
Benefit obligation at end of year | 3,732 | 3,021 |
Hourly Employees’ Pension Plan | Pension Plans, Defined Benefit | ||
Change in projected benefit obligation | ||
Benefit obligation at beginning of year | 9,477 | 10,786 |
Service cost | 8 | 11 |
Interest cost | 422 | 371 |
Liability actuarial loss (gain) | 1,189 | -1,060 |
Benefits paid | -640 | -631 |
Benefit obligation at end of year | 10,456 | 9,477 |
Change in fair value of plan assets | ||
Fair value of plan assets at beginning of year | 8,873 | 7,690 |
Return on plan assets | 442 | 1,136 |
Employer contributions | 548 | 678 |
Benefits paid | -640 | -631 |
Fair value of plan assets at end of year | 9,223 | 8,873 |
Underfunded status – December 31, 2014 | -1,233 | -604 |
Employees’ Retirement Plan | Pension Plans, Defined Benefit | ||
Change in projected benefit obligation | ||
Benefit obligation at beginning of year | 18,335 | 20,923 |
Service cost | 4 | 5 |
Interest cost | 852 | 760 |
Liability actuarial loss (gain) | 3,163 | -2,620 |
Benefits paid | -759 | -733 |
Benefit obligation at end of year | 21,595 | 18,335 |
Change in fair value of plan assets | ||
Fair value of plan assets at beginning of year | 16,401 | 14,148 |
Return on plan assets | 820 | 2,090 |
Employer contributions | 652 | 896 |
Benefits paid | -759 | -733 |
Fair value of plan assets at end of year | 17,114 | 16,401 |
Underfunded status – December 31, 2014 | ($4,481) | ($1,934) |
Retirement_Benefit_Plans_Sched1
Retirement Benefit Plans (Schedule of Assumptions Used) (Details) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Net periodic pension expense, rate of compensation increase | 3.00% | 3.00% |
Supplemental Employee Retirement Plans, Defined Benefit | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 3.70% | 4.60% |
Composite rate of compensation increase | 3.00% | 3.00% |
Net periodic pension expense, discount rate | 4.60% | 3.37% |
Hourly Employees’ Pension Plan | Pension Plans, Defined Benefit | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 4.00% | 4.60% |
Net periodic pension expense, discount rate | 4.60% | 3.55% |
Net periodic pension expense, Long-term rate of return on plan assets | 7.25% | 7.25% |
Employees’ Retirement Plan | Pension Plans, Defined Benefit | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 4.10% | 4.75% |
Net periodic pension expense, discount rate | 4.75% | 3.70% |
Net periodic pension expense, Long-term rate of return on plan assets | 7.25% | 7.25% |
Retirement_Benefit_Plans_Sched2
Retirement Benefit Plans (Schedule of Net Periodic Benefit Cost) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Pension Plans, Defined Benefit | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $12 | $16 |
Interest cost | 1,274 | 1,131 |
Expected return on plan assets | -1,817 | -1,567 |
Amortization of net loss (gain) | 132 | 703 |
Net periodic benefit cost | -399 | 283 |
Supplemental Employee Retirement Plans, Defined Benefit | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 152 | 114 |
Interest cost | 138 | 102 |
Amortization of prior service cost | 270 | 327 |
Net periodic benefit cost | 560 | 543 |
Hourly Employees’ Pension Plan | Pension Plans, Defined Benefit | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 8 | 11 |
Interest cost | 422 | 371 |
Expected return on plan assets | -637 | -549 |
Amortization of net loss (gain) | 72 | 285 |
Net periodic benefit cost | -135 | 118 |
Employees’ Retirement Plan | Pension Plans, Defined Benefit | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 4 | 5 |
Interest cost | 852 | 760 |
Expected return on plan assets | -1,180 | -1,018 |
Amortization of net loss (gain) | 60 | 418 |
Net periodic benefit cost | ($264) | $165 |
Retirement_Benefit_Plans_Weigh
Retirement Benefit Plans (Weighted Average Asset Allocations) (Details) (Pension Plans, Defined Benefit) | Dec. 31, 2014 | Dec. 31, 2013 |
Hourly Employees’ Pension Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Asset allocations as a percentage of plan assets | 100.00% | 100.00% |
Hourly Employees’ Pension Plan | Equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Asset allocations as a percentage of plan assets | 53.00% | 55.00% |
Hourly Employees’ Pension Plan | Debt securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Asset allocations as a percentage of plan assets | 38.00% | 38.00% |
Hourly Employees’ Pension Plan | Short-term investments | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Asset allocations as a percentage of plan assets | 5.00% | 2.00% |
Hourly Employees’ Pension Plan | Other | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Asset allocations as a percentage of plan assets | 4.00% | 5.00% |
Employees’ Retirement Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Asset allocations as a percentage of plan assets | 100.00% | 100.00% |
Employees’ Retirement Plan | Equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Asset allocations as a percentage of plan assets | 55.00% | 55.00% |
Employees’ Retirement Plan | Debt securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Asset allocations as a percentage of plan assets | 38.00% | 38.00% |
Employees’ Retirement Plan | Short-term investments | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Asset allocations as a percentage of plan assets | 3.00% | 2.00% |
Employees’ Retirement Plan | Other | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Asset allocations as a percentage of plan assets | 4.00% | 5.00% |
Retirement_Benefit_Plans_Sched3
Retirement Benefit Plans (Schedule of Fair Value of Plan Assets) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $26,337 | $25,274 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 10,717 | 11,446 |
Significant Other Observable Inputs (Level 2) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 15,620 | 13,828 |
Significant Unobservable Inputs (Level 3) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Mid Cap | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 1,642 | 1,577 |
Mid Cap | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 1,642 | 1,577 |
Large Cap | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 5,162 | 6,826 |
Large Cap | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 5,162 | 6,826 |
International | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 2,985 | 2,531 |
International | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 2,985 | 2,531 |
Liability Driven Solution | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 3,702 | 3,521 |
Liability Driven Solution | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | ||
Liability Driven Solution | Significant Other Observable Inputs (Level 2) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 3,702 | 3,521 |
Liability Driven Solution | Significant Unobservable Inputs (Level 3) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | ||
Wells Fargo International Equity Index Fund | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 1,098 | 1,286 |
Wells Fargo International Equity Index Fund | Significant Other Observable Inputs (Level 2) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 1,098 | 1,286 |
Wells Fargo Core Bond | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 1,810 | |
Wells Fargo Core Bond | Significant Other Observable Inputs (Level 2) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 1,810 | |
Wells Fargo Thornburg International | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 1,273 | |
Wells Fargo Thornburg International | Significant Other Observable Inputs (Level 2) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 1,273 | |
Wells Fargo/Causeway | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 1,118 | |
Wells Fargo/Causeway | Significant Other Observable Inputs (Level 2) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 1,118 | |
Wells Fargo Large Cap Growth Index Fund | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 1,473 | 1,423 |
Wells Fargo Large Cap Growth Index Fund | Significant Other Observable Inputs (Level 2) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 1,473 | 1,423 |
Wells Fargo Large Cap Value Index Fund | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 1,476 | 1,427 |
Wells Fargo Large Cap Value Index Fund | Significant Other Observable Inputs (Level 2) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 1,476 | 1,427 |
Wells Fargo Multi-Manager Small Cap | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 1,783 | 1,683 |
Wells Fargo Multi-Manager Small Cap | Significant Other Observable Inputs (Level 2) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 1,783 | 1,683 |
Wells Fargo Russell 2000 Index Fund | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 860 | 841 |
Wells Fargo Russell 2000 Index Fund | Significant Other Observable Inputs (Level 2) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 860 | 841 |
Wells Fargo S&P Mid Cap Index Fund | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 990 | 950 |
Wells Fargo S&P Mid Cap Index Fund | Significant Other Observable Inputs (Level 2) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 990 | 950 |
T. Rowe Price Equity Income | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 1,310 | 1,424 |
T. Rowe Price Equity Income | Significant Other Observable Inputs (Level 2) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 1,310 | 1,424 |
Cash & Short-term Investments | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 928 | 512 |
Cash & Short-term Investments | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $928 | $512 |
Retirement_Benefit_Plans_Sched4
Retirement Benefit Plans (Schedule of Expected Benefit Payments) (Details) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Pension Plans, Defined Benefit | |
Defined Benefit Plan Disclosure [Line Items] | |
2015 | $1,526 |
2016 | 1,574 |
2017 | 1,674 |
2018 | 1,776 |
2019 | 1,818 |
Years 2020 through 2024 | 9,637 |
Supplemental Employee Retirement Plans, Defined Benefit | |
Defined Benefit Plan Disclosure [Line Items] | |
2015 | 62 |
2016 | 110 |
2017 | 149 |
2018 | 251 |
2019 | 252 |
Years 2020 through 2024 | 1,411 |
Hourly Employees’ Pension Plan | Pension Plans, Defined Benefit | |
Defined Benefit Plan Disclosure [Line Items] | |
2015 | 639 |
2016 | 641 |
2017 | 648 |
2018 | 656 |
2019 | 665 |
Years 2020 through 2024 | 3,269 |
Employees’ Retirement Plan | Pension Plans, Defined Benefit | |
Defined Benefit Plan Disclosure [Line Items] | |
2015 | 887 |
2016 | 933 |
2017 | 1,026 |
2018 | 1,120 |
2019 | 1,153 |
Years 2020 through 2024 | $6,368 |
Segment_Reporting_Details
Segment Reporting (Details) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||
Reportable_Segment | ||||||
Segment Reporting Information [Line Items] | ||||||
Number of principal reporting segments | 3 | |||||
Net Revenue | $839,055 | $682,090 | [1] | $633,031 | [1] | |
Income from Operations | 62,664 | 50,737 | [1] | 45,349 | [1] | |
Goodwill | 72,407 | 32,073 | 31,648 | 31,751 | ||
Total Identifiable Assets | 629,602 | 438,476 | ||||
North American Industrial | ||||||
Segment Reporting Information [Line Items] | ||||||
Net Revenue | 436,018 | 297,857 | [1] | 264,504 | [1] | |
Income from Operations | 39,377 | 25,743 | [1] | 19,313 | [1] | |
Goodwill | 54,036 | 13,176 | ||||
Total Identifiable Assets | 363,812 | 161,080 | ||||
North American Agricultural | ||||||
Segment Reporting Information [Line Items] | ||||||
Net Revenue | 214,326 | 219,354 | [1] | 203,945 | [1] | |
Income from Operations | 11,714 | 17,880 | [1] | 18,319 | [1] | |
Goodwill | 695 | 0 | ||||
Total Identifiable Assets | 113,286 | 123,352 | ||||
European | ||||||
Segment Reporting Information [Line Items] | ||||||
Net Revenue | 188,711 | 164,879 | [1] | 164,582 | [1] | |
Income from Operations | 11,573 | 7,114 | [1] | 7,717 | [1] | |
Goodwill | 17,676 | 18,897 | ||||
Total Identifiable Assets | $152,504 | $154,044 | ||||
[1] | As adjusted for the immaterial correction. See Note 1. |
International_Operations_and_G2
International Operations and Geographic Information (Schedule of Selected Financial Information for International Operations) (Details) (USD $) | 12 Months Ended | ||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
Segment Reporting Information [Line Items] | |||||
Net sales | $839,055 | $682,090 | $633,031 | ||
Income from operations | 62,664 | 50,737 | [1] | 45,349 | [1] |
Identifiable assets | 629,602 | 438,476 | |||
Other | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 260,874 | 236,839 | 227,568 | ||
Income from operations | 15,840 | 14,822 | 14,470 | ||
Income before income taxes | 17,315 | 16,241 | 13,731 | ||
Identifiable assets | $219,036 | $205,317 | $179,263 | ||
[1] | As adjusted for the immaterial correction. See Note 1. |
International_Operations_and_G3
International Operations and Geographic Information (Schedule of Geographic Net Sales and Location of Long-lived assets) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | $839,055 | $682,090 | $633,031 |
Long-Lived Assets | 235,684 | 100,852 | 97,633 |
United States | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 571,817 | 449,119 | 405,761 |
Long-Lived Assets | 168,404 | 42,053 | 46,749 |
United Kingdom | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 58,976 | 36,892 | 40,735 |
Long-Lived Assets | 20,840 | 19,718 | 13,809 |
France | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 93,699 | 97,959 | 92,964 |
Long-Lived Assets | 21,728 | 25,751 | 25,166 |
Canada | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 54,087 | 45,212 | 36,366 |
Long-Lived Assets | 23,354 | 12,562 | 11,719 |
Australia | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 13,702 | 11,519 | 10,232 |
Long-Lived Assets | 1,358 | 768 | 190 |
Other | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | $46,774 | $41,389 | $46,973 |
Commitments_and_Contingencies_1
Commitments and Contingencies (Schedule of Future Commitments) (Details) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Commitments and Contingencies Disclosure [Abstract] | |
Operating Leases, 2015 | $3,471 |
Capital Leases, 2015 | 37 |
Operating Leases, 2016 | 2,680 |
Capital Leases, 2016 | 19 |
Operating Leases, 2017 | 1,925 |
Capital Leases, 2017 | 6 |
Operating Leases, 2018 | 1,061 |
Capital Leases, 2018 | 0 |
Operating Leases, 2019 | 544 |
Capital Leases, 2019 | 0 |
Operating Leases, Thereafter | 513 |
Capital Leases, Thereafter | 0 |
Operating Leases, Total minimum lease payments | 10,194 |
Capital Leases, Total minimum lease payments | 62 |
Less amount representing interest | 3 |
Present value of net minimum lease payments | 59 |
Less current portion | 35 |
Long-term portion | $24 |
Commitments_and_Contingencies_2
Commitments and Contingencies (Narrative) (Details) (USD $) | 12 Months Ended | 1 Months Ended | 3 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2014 | |
Loss Contingencies [Line Items] | |||||
Rental expense for operating leases | $3,666,000 | $2,293,000 | $2,088,000 | ||
Purchase obligations | 98,238,000 | 98,238,000 | |||
Deere and Company v Bush Hog LLC and Great Plains Manufacturing Inc | |||||
Loss Contingencies [Line Items] | |||||
Legal fees incurred | 2,100,000 | ||||
Unfavorable litigation action | |||||
Loss Contingencies [Line Items] | |||||
Amount of unjust enrichment per federal district court | 1,000,000 | ||||
Amount returned that was previously reserved to the income statement | $1,250,000 |
Quarterly_Financial_Informatio2
Quarterly Financial Information (Unaudited) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Schedule of Quarterly Financial Information Disclosure [Line Items] | |||||||||||
Sales | $223,911 | $234,783 | $207,751 | $172,610 | $166,742 | $176,182 | $179,380 | $159,786 | |||
Gross profit | 48,372 | 55,440 | 47,286 | 38,130 | 36,351 | 43,156 | 44,091 | 34,912 | 189,228 | 158,510 | 143,512 |
Net income | $11,351 | $13,367 | $9,195 | $7,238 | $6,024 | $11,333 | $11,787 | $6,950 | $41,151 | $36,094 | $28,903 |
Per common share - diluted | |||||||||||
Diluted (in dollars per share) | $1 | $1.10 | $0.75 | $0.59 | $0.49 | $0.93 | $0.97 | $0.57 | $3.42 | $2.96 | $2.40 |
Average shares | |||||||||||
Diluted (in shares) | 11,403 | 12,205 | 12,276 | 12,270 | 12,262 | 12,229 | 12,200 | 12,158 | 12,039 | 12,212 | 12,058 |
Dividends per share (in dollars per share) | $0.07 | $0.07 | $0.07 | $0.07 | $0.07 | $0.07 | $0.07 | $0.07 | $0.28 | $0.28 | $0.24 |
High | |||||||||||
Market price of common stock | |||||||||||
Share Price (in dollars per share) | $52.13 | $55.84 | $57.86 | $60.65 | $61.27 | $49.45 | $44.13 | $40.64 | $52.13 | $61.27 | |
Low | |||||||||||
Market price of common stock | |||||||||||
Share Price (in dollars per share) | $37.93 | $40.75 | $49.50 | $46.87 | $45.51 | $40.48 | $37.39 | $33.12 | $37.93 | $45.51 |
Quarterly_Financial_Informatio3
Quarterly Financial Information (Unaudited) (Narrative) (Details) (USD $) | 3 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Effect of Fourth Quarter Events [Line Items] | ||
Recapitalization Costs | $700,000 | |
Unfavorable litigation action | ||
Effect of Fourth Quarter Events [Line Items] | ||
Amount returned that was previously reserved to the income statement | 1,250,000 | |
Patent Infringement | ||
Effect of Fourth Quarter Events [Line Items] | ||
Charge relating to various litigation matters | $1,800,000 |