Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Feb. 29, 2016 | Jun. 30, 2015 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | ALAMO GROUP INC | ||
Entity Central Index Key | 897,077 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 11,429,852 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 601,953,308 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 26,922 | $ 39,533 |
Accounts receivable, net | 178,305 | 175,008 |
Inventories | 150,758 | 166,088 |
Deferred income taxes | 0 | 4,712 |
Prepaid expenses | 5,410 | 4,415 |
Income tax receivable | 1,491 | 3,546 |
Total current assets | 362,886 | 393,302 |
Rental equipment, net | 37,564 | 33,631 |
Property, plant and equipment | 178,044 | 171,667 |
Less: Accumulated depreciation | (107,094) | (100,497) |
Property, plant and equipment, net | 70,950 | 71,170 |
Goodwill | 75,509 | 75,691 |
Intangible assets, net | 52,950 | 56,984 |
Deferred income taxes | 1,475 | 642 |
Other assets | 2,169 | 1,466 |
Total assets | 603,503 | 632,886 |
Current liabilities: | ||
Trade accounts payable | 45,486 | 47,741 |
Income taxes payable | 1,320 | 52 |
Accrued liabilities | 38,141 | 41,002 |
Current maturities of long-term debt and capital lease obligations | 77 | 551 |
Deferred income taxes | 0 | 21 |
Total current liabilities | 85,024 | 89,367 |
Long-term debt and capital lease obligation, net of current maturities | 144,006 | 190,024 |
Accrued pension liabilities | 4,499 | 5,714 |
Other long-term liabilities | 5,782 | 5,656 |
Deferred income taxes | 3,723 | 4,455 |
Stockholders’ equity: | ||
Common stock, $.10 par value, 20,000,000 shares authorized; 11,392,236 and 11,306,650 issued at December 31, 2015 and December 31, 2014, respectively | 1,139 | 1,130 |
Additional paid-in capital | 96,778 | 93,849 |
Treasury stock, at cost; 42,600 shares at December 31, 2015 and December 31, 2014 | (426) | (426) |
Retained earnings | 299,057 | 259,476 |
Accumulated other comprehensive loss | (36,079) | (16,359) |
Total stockholders’ equity | 360,469 | 337,670 |
Total liabilities and stockholders’ equity | $ 603,503 | $ 632,886 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2015 | Dec. 31, 2014 |
Stockholders' equity: | ||
Common stock, par value | $ 0.1 | $ 0.1 |
Common stock, shares authorized | 20,000,000 | 20,000,000 |
Common stock, shares issued | 11,392,236 | 11,306,650 |
Treasury stock, shares | 42,600 | 42,600 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Net sales: | |||
Net sales: | $ 879,577 | $ 839,055 | $ 682,090 |
Cost of sales | 677,129 | 649,827 | 523,580 |
Gross profit | 202,448 | 189,228 | 158,510 |
Selling, general and administrative expenses | 135,920 | 126,564 | 107,773 |
Income from operations | 66,528 | 62,664 | 50,737 |
Interest expense | (6,724) | (4,037) | (1,161) |
Interest income | 189 | 211 | 186 |
Other income (expense), net | 6,874 | 1,767 | 1,626 |
Income before income taxes | 66,867 | 60,605 | 51,388 |
Provision for income taxes | 23,658 | 19,454 | 15,294 |
Net income | $ 43,209 | $ 41,151 | $ 36,094 |
Net income per common share: | |||
Basic (in dollars per share) | $ 3.81 | $ 3.47 | $ 3 |
Diluted (in dollars per share) | $ 3.76 | $ 3.42 | $ 2.96 |
Average common shares: | |||
Basic (in shares) | 11,349 | 11,875 | 12,050 |
Diluted (in shares) | 11,482 | 12,039 | 12,212 |
Industrial | |||
Net sales: | |||
Net sales: | $ 498,761 | $ 436,018 | $ 297,857 |
Income from operations | 42,194 | 39,377 | 25,743 |
Agricultural | |||
Net sales: | |||
Net sales: | 208,257 | 214,326 | 219,354 |
Income from operations | 17,295 | 11,714 | 17,880 |
European | |||
Net sales: | |||
Net sales: | 172,559 | 188,711 | 164,879 |
Income from operations | $ 7,039 | $ 11,573 | $ 7,114 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 43,209 | $ 41,151 | $ 36,094 |
Other comprehensive (loss) income: | |||
Foreign currency translation adjustment | (20,112) | (16,331) | 479 |
Net gain (loss) on pension and other postretirement benefits | 544 | (4,938) | 6,706 |
Other comprehensive (loss) income before income tax (benefit) expense | (19,568) | (21,269) | 7,185 |
Income tax (expense) benefit related to items of other comprehensive (loss) income | (152) | 1,872 | (2,516) |
Other comprehensive (loss) income | (19,720) | (19,397) | 4,669 |
Comprehensive income | $ 23,489 | $ 21,754 | $ 40,763 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Treasury Stock | Retained Earnings | Accumulated Other Comprehensive Income |
Balance at Dec. 31, 2012 | $ 310,286 | $ 1,203 | $ 88,660 | $ (426) | $ 222,480 | $ (1,631) |
Balance (shares) at Dec. 31, 2012 | 11,986 | |||||
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 | |||||
Exercise of stock options | 1,286 | $ 8 | 1,278 | |||
Dividends paid | (3,371) | (3,371) | ||||
Balance (shares) at Dec. 31, 2013 | 12,071 | |||||
Balance at Dec. 31, 2013 | 350,465 | $ 1,211 | 91,439 | (426) | 255,203 | 3,038 |
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 | |||||
Exercise of stock options | 903 | $ 4 | 899 | |||
Repurchased shares | (34,204) | (34,204) | ||||
Retirement of shares (shares) | (850) | |||||
Retirement of shares | 0 | $ (85) | (569) | 34,204 | (33,550) | |
Dividends paid | (3,328) | (3,328) | ||||
Balance (shares) at Dec. 31, 2014 | 11,264 | |||||
Balance at Dec. 31, 2014 | 337,670 | $ 1,130 | 93,849 | (426) | 259,476 | (16,359) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 43,209 | 43,209 | ||||
Translation adjustment | (20,112) | (20,112) | ||||
Net actuarial loss arising during period net of taxes | 392 | 392 | ||||
Tax effect of exercised non-qualified stock options | (142) | (142) | ||||
Stock-based compensation | 1,057 | 1,057 | ||||
Exercise of stock options, shares | 86 | |||||
Exercise of stock options | 2,023 | $ 9 | 2,014 | |||
Dividends paid | (3,628) | (3,628) | ||||
Balance (shares) at Dec. 31, 2015 | 11,350 | |||||
Balance at Dec. 31, 2015 | $ 360,469 | $ 1,139 | $ 96,778 | $ (426) | $ 299,057 | $ (36,079) |
Consolidated Statements of Sto7
Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statement of Stockholders' Equity [Abstract] | |||
Dividends paid (in dollars per share) | $ 0.32 | $ 0.28 | $ 0.28 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Operating Activities | |||
Net income | $ 43,209 | $ 41,151 | $ 36,094 |
Adjustments to reconcile net income to cash provided by operating activities: | |||
Provision for doubtful accounts | 965 | 469 | 31 |
Depreciation | 18,988 | 10,645 | 8,898 |
Amortization of intangibles | 3,113 | 2,005 | 0 |
Amortization of debt issuance | 214 | 183 | 126 |
Stock-based compensation expense | 1,057 | 1,986 | 1,501 |
Excess tax expense (benefit) from stock-based payment arrangements | 142 | (94) | 0 |
Provision for deferred income tax expense (benefit) | 2,804 | (108) | (877) |
Gain on sale of property, plant and equipment | (4,046) | (911) | (237) |
Changes in operating assets and liabilities, net of effect of acquisitions: | |||
Accounts receivable | (9,657) | (12,596) | (10,515) |
Inventories | 9,759 | (10,993) | 776 |
Rental equipment | (11,699) | (5,184) | 0 |
Prepaid expenses and other | (3,521) | 6,661 | (925) |
Trade accounts payable and accrued liabilities | (1,708) | 1,202 | 4,420 |
Income taxes payable | 3,700 | (3,075) | (4,565) |
Other assets and liabilities, net | (760) | (1,131) | (3,100) |
Net cash provided by operating activities | 52,560 | 30,210 | 31,627 |
Investing Activities | |||
Acquisitions, net of cash acquired | (3,465) | (196,467) | (1,002) |
Purchase of property, plant and equipment | (15,479) | (9,806) | (13,639) |
Proceeds from sale of property, plant and equipment | 4,246 | 1,442 | 475 |
Net cash used in investing activities | (14,698) | (204,831) | (14,166) |
Financing Activities | |||
Borrowings on bank revolving credit facility | 79,000 | 273,000 | 0 |
Repayment on bank revolving credit facility | (125,000) | (83,000) | 0 |
Principal payments on long-term debt and capital leases | (449) | (682) | (399) |
Proceeds from issuance of long-term debt | 0 | 767 | 0 |
Debt issuance cost | 0 | (818) | 0 |
Dividends paid | (3,628) | (3,328) | (3,371) |
Proceeds from exercise of stock options | 2,023 | 903 | 1,286 |
Treasury stock repurchased | 0 | (34,204) | 0 |
Excess tax (benefit) expense from stock-based payment arrangements | (142) | 94 | 0 |
Net cash (used in) provided by financing activities | (48,196) | 152,732 | (2,484) |
Effect of exchange rate changes on cash | (2,277) | (2,538) | 692 |
Net change in cash and cash equivalents | (12,611) | (24,427) | 15,669 |
Cash and cash equivalents at beginning of the year | 39,533 | 63,960 | 48,291 |
Cash and cash equivalents at end of the year | 26,922 | 39,533 | 63,960 |
Cash paid during the year for: | |||
Interest | 6,936 | 3,320 | 1,118 |
Income taxes | $ 18,709 | $ 22,243 | $ 21,580 |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
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: Agricultural, Industrial and European, which are discussed in Note 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. 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. Such estimates include, but are not limited to, allowance for doubtful accounts, reserve for sales discounts, estimated realizable value on obsolete and slow-moving inventory; warranty reserve, estimates related to pension accounting; estimates related to fair value for purposes of assessing goodwill, long-lived assets and intangible assets for impairment; estimates related to income taxes; and estimates related to contingencies. 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 limit its exposure to certain foreign currency transactions. The Company does not hold or issue financial instruments for trading purposes. On December 31, 2015 , the Company had a notional amount of $ 4,309,000 in outstanding forward exchange contracts related to sales. 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, 2015 and December 31, 2014 , 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. Inventory costs include those costs directly attributable to products, including raw materials, labor and overhead. 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. Long-lived assets Long-lived assets, such as property, plant and equipment, rental equipment, and purchased intangibles subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If circumstances require a long-lived asset or asset group to be tested for possible impairment, the Company first compares non-discounted cash flows expected to be generated by that asset group to its carrying amount. If the carrying amount of the long-lived asset or asset group is not recoverable on an non-discounted cash flow basis, an impairment is recognized to the extent that the carrying amount exceeds fair value. Fair value is determined through various valuation techniques including discounted cash flow models, quoted market values and third-party independent appraisals, as considered necessary. Goodwill Goodwill consists of the excess of the purchase price over the fair value of identifiable net assets of businesses acquired. We test goodwill and intangible assets for impairment annually, at the reporting unit level, and whenever events or circumstances make it likely that an impairment may have occurred, such as a significant adverse change in the business climate or a decision to sell all or a portion of a reporting unit. During the third quarter of 2015, the Company changed its annual goodwill and intangible assets impairment testing date from December 31 to October 1. Management considers this accounting change preferable because it allows the Company additional time to complete the annual goodwill test. This change does not accelerate, delay, avoid, or cause an impairment charge, nor does this change result in adjustments to previously issued financial statements. We perform our annual goodwill and intangible assets impairment test 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 and intangible assets 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 and intangible assets. If the fair value of the reporting unit exceeds its carrying value, the goodwill and intangible assets are 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 and intangible assets are 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 and intangible assets are 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, 2015 , goodwill was $ 75,509,000 , which represents 13% of total assets. The Company recognized no goodwill impairment in 2015 , 2014 , or 2013 . During the 2015 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 October 1, 2015 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, 2015 was $47,450,000 and $51,484,000 at December 31, 2014 . 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, 2015 and December 31, 2014 . 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 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 The Company records annual amounts relating to its pension and post-retirement plans based on calculations that incorporate various actuarial and other assumptions, including discount rates, mortality, assumed rates of return, compensation increases, turnover rates and health care cost trend rates. The Company reviews its assumptions on an annual basis and makes modifications to the assumptions based on current rates and trends when it is appropriate to do so. The effect of modifications to those assumptions is recorded in accumulated other comprehensive income and amortized to net periodic cost over future periods using the corridor method. The Company believes that the assumptions utilized in recording its obligations under its plans are reasonable based on its experience and market conditions. The net periodic costs are recognized as employees render the services necessary to earn the post-retirement benefits. Related Party Transactions There were no reportable relationships or related party transactions for the years ended December 31, 2015 , 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. The Company enters into operating lease agreements with customers related to the rental of certain equipment. The rental income is recognized ratably over the term of the leases. Sales taxes collected from customers and remitted to governmental authorities are accounted for on a net basis and therefore are excluded from revenues in the consolidated statements of operations. Rental Equipment The Company enters into operating lease agreements with customers related to the rental of certain equipment. 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 $8,322,000 and $3,435,000 on of December 31, 2015 and December 31, 2014 . 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 2015 , 2014 , and 2013 was approximately $ 7,670,000 , $ 7,368,000 and $ 6,646,000 , 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 $ 8,590,000 , $ 8,427,000 , and $ 7,164,000 for the years ended December 31, 2015 , 2014 , and 2013 , respectively. Commitments, Contingencies and Legal Costs Liabilities for loss contingencies arising from claims, assessments, litigation, fines and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount can be reasonably estimated. 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. Excess tax benefits or awards that are recognized in equity related to stock option exercises are reflected as cash flows from financing activities in the statement of cash flows. 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 2015 , 2014 , and 2013 : December 31, 2015 2014 2013 Risk-free interest rate 2.00 % 2.24 % 1.38 % Dividend yield 0.6 % 0.5 % 0.8 % Volatility factors 48.8 % 48.2 % 47.9 % Weighted-average expected life 8.0 years 8.0 years 8.0 years Earnings per common share (“EPS”) Basic EPS is computed using the weighted-average number of common shares outstanding during the year. The treasury stock method is used to compute diluted EPS which gives effect to the potential dilution of earnings that could have occurred if additional shares were issued for awards granted under the Company’s incentive stock option plans. The treasury stock method assumes proceeds that would be obtained upon exercise of awards granted under the incentive stock option plans are used to purchase outstanding common stock at the average market price during the period. Fair Value of Financial Instruments 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. 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, 2015 and 2014 , 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, 2015 | |
Business Combinations [Abstract] | |
ACQUISITIONS AND INVESTMENTS | ACQUISITIONS AND INVESTMENTS On March 9, 2015, the Company acquired Herder Implementos e Maquinas Agricolas Ltda. ("Herder") on a debt free basis for a total consideration of approximately $4.0 million subject to certain post-closing adjustments. This acquisition is being accounted for in accordance with ASC Topic 805 Business Combinations (“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 acquisition date. These allocations reflect provisional estimates that were available at the time and are subject to change during the measurement period as valuations are finalized. The primary reason for the Herder acquisition was to establish a presence in South America which is a major global agricultural market; therefore, Herder will be reported as part of the Company's Agricultural Division. The revenue and earnings of Herder from the date of acquisition to December 31, 2015 were not material to the Company’s consolidated results of operations. In addition, assuming the acquisition had occurred as of January 1, 2014, the results of operations of Herder would not have had a material pro forma effect on the Company’s revenues, earnings or earnings per share for the periods ended December 31, 2015. Other Acquisitions 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 pursuant to the terms of the Membership Interests and Partnership Interests Purchase Agreement dated February 24, 2014. 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 Specialized acquisition on May 13, 2014, the Company amended its revolving credit facility and increased its line of credit from $100 million to $250 million . The Company financed the acquisition through $190 million of new borrowings under the amended credit facility. The Specialized acquisition was accounted for in accordance with 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. During Q2 2015, the Company completed its valuation of the acquired assets and liabilities. In connection with preparing information needed for the associated tax returns, the Company identified an error in the pre-acquisition financial statements of Specialized Industries. In particular, a previously unrecognized deferred tax liability approximating $3.3 million related to intangible assets was identified. This resulted in an adjustment to the preliminary purchase price allocation disclosed in Note 2 of the Notes to Consolidated Financial Statements included in our annual report on Form 10-K for the year ended December 31, 2014. The Company adjusted the purchase price allocation associated with the Specialized acquisition to record the $3.3 million deferred tax liability with an associated increase in goodwill. Pursuant to ASC 805-10-25-17, this adjustment has been reflected as of the acquisition date, and accordingly, the recorded amounts for deferred income tax liabilities and goodwill in the December 31, 2014 financial statements included herein have been adjusted to reflect the revised amounts. The final amounts assigned to the assets acquired and liabilities assumed in the Specialized acquisition were recognized at their acquisition-date fair values and are as follows (in thousands): Cash $ 2,025 Accounts receivable 16,290 Inventory 47,500 Prepaid expenses 3,223 Rental equipment 28,446 Property, plant & equipment 13,214 Intangible assets 53,900 Other assets 675 Deferred income tax (6,023 ) Other liabilities assumed (10,962 ) Net assets assumed $ 148,288 Goodwill 44,611 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. This allocation resulted in goodwill of $44.6 million , all of which has been assigned to the Company's Industrial reporting segment. $31.5 million of goodwill is tax deductible. 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. 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. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2015 | |
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) 2015 2014 2013 Net income $ 43,209 $ 41,151 $ 36,094 Average common shares: Basic (weighted-average outstanding shares) 11,349 11,875 12,050 Dilutive potential common shares from stock options 133 164 162 Diluted (weighted-average outstanding shares) 11,482 12,039 12,212 Basic earnings per share $ 3.81 $ 3.47 $ 3.00 Diluted earnings per share $ 3.76 $ 3.42 $ 2.96 Stock options totaling 61,690 shares in 2015 , 37,261 shares in 2014 , and 3,831 shares in 2013 were not included in the diluted earnings per share calculation because the effect would have been anti-dilutive. |
Valuation and Qualifying Accoun
Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2015 | |
Receivables [Abstract] | |
VALUATION AND QUALIFYING ACCOUNTS | VALUATION AND QUALIFYING ACCOUNTS Valuation and qualifying accounts included the following: (in thousands) Balance Beginning of Year Net Charged to Costs and Expenses Translations, Reclassifications and Acquisitions Net Write-Offs or Discounts Taken Balance End of Year 2015 Allowance for doubtful accounts $ 2,853 $ 965 $ (185 ) $ (149 ) $ 3,484 Reserve for sales discounts 15,999 78,304 (145 ) (79,064 ) 15,094 Reserve for inventory obsolescence 7,601 5,209 (454 ) (2,681 ) 9,675 Reserve for warranty 5,913 7,732 (325 ) (7,754 ) 5,566 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 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 $ 3,484,000 on December 31, 2015 , and $ 2,853,000 on December 31, 2014 . The increase was primarily from the Company's U.S. operations. Sales Discounts On December 31, 2015 , the Company had $ 15,094,000 in reserves for sales discounts compared to $ 15,999,000 on December 31, 2014 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 $ 9,675,000 on December 31, 2015 and $ 7,601,000 on December 31, 2014 to cover obsolete and slow moving inventory. The increase in the reserve was mainly from the Company's Industrial 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 $ 5,566,000 on December 31, 2015 and $ 5,913,000 on December 31, 2014 and are included in Note 9. The decrease was primarily in the Company's U.S. operations. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2015 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | INVENTORIES Inventories valued at LIFO represented 45% and 37% of total inventory for the years ended December 31, 2015 and 2014 , respectively. The excess of current costs over LIFO-valued inventories was $ 8,712,000 and $ 10,230,000 on December 31, 2015 and December 31, 2014 , respectively. Inventories consisted of the following on a cost basis, net of reserves: December 31, (in thousands) 2015 2014 Finished goods and parts $ 129,995 $ 112,197 Work in process 9,561 18,635 Raw materials 11,202 35,256 $ 150,758 $ 166,088 |
Property Plant and Equipment
Property Plant and Equipment | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT | PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment consist of the following: December 31, (in thousands) 2015 2014 Useful Lives Land $ 9,478 $ 9,181 Buildings and improvements 73,828 72,514 5-20 yrs. Machinery and equipment 70,791 66,799 3-10 yrs. Office furniture and equipment 7,128 6,254 3-7 yrs. Computer software 11,298 11,283 3-7 yrs. Transportation equipment 5,521 5,636 3 yrs. 178,044 171,667 Accumulated depreciation (107,094 ) (100,497 ) $ 70,950 $ 71,170 Property, plant and equipment on December 31, 2015 and December 31, 2014 include capital leases in the amount of $ 182,000 and $ 412,000 , respectively, which are included in the listings above. Accumulated depreciation relating to the capital leases on December 31, 2015 and 2014 was $ 92,000 and $ 308,000 , respectively. Amortization related to the capital lease is included in depreciation expense. The decrease in capital leases in 2015 was due to the purchase of previously leased property. |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL | GOODWILL The changes in the carrying amount of goodwill for the twelve months ended December 31, 2013 , 2014 , and 2015 are as follows: (in thousands) Balance at December 31, 2012 $ 31,648 Translation adjustment 425 Balance at December 31, 2013 $ 32,073 Translation adjustment (2,217 ) Goodwill acquired $ 45,835 Balance at December 31, 2014 $ 75,691 Translation adjustment (3,181 ) Goodwill acquired 2,999 Balance at December 31, 2015 $ 75,509 |
Definite and Indefinite Lived I
Definite and Indefinite Lived Intangible Assets | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
DEFINITE AND INDEFINITE LIVED INTANGIBLE ASSETS | DEFINITE AND INDEFINITE 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, 2014 Definite: Trade names and trademarks 25 years $ 21,878 $ 22,104 Customer and dealer relationships 14 years 28,715 29,404 Patents and drawings 12 years 1,893 1,968 Total at cost 52,486 53,476 Less accumulated amortization 5,036 1,992 Total net 47,450 51,484 Indefinite: Trade names and trademarks 5,500 5,500 Total Intangible Assets $ 52,950 $ 56,984 The Company's net carrying value at December 31, 2015 of intangible assets with definite useful lives consists of trade names and trademarks at $20,452,000 , customer and dealer relationships at $25,360,000 and patents and drawings at $1,638,000 . As of December 31, 2015 , the related accumulated amortization balance for the definite lived assets were $1,427,000 for trade names and trademarks, $3,354,000 for customer and dealer relationships, and $255,000 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, 2015 | |
Payables and Accruals [Abstract] | |
ACCRUED LIABILITIES | ACCRUED LIABILITIES Accrued liabilities consist of the following balances: December 31, (in thousands) 2015 2014 Salaries, wages and bonuses $ 19,270 $ 20,635 Warranty 5,566 5,913 State taxes 2,180 3,997 Other 11,125 10,457 $ 38,141 $ 41,002 |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
LONG-TERM DEBT | LONG-TERM DEBT The components of long-term debt are as follows: December 31, (in thousands) 2015 2014 Bank revolving credit facility $ 144,000 $ 190,000 Capital lease obligations 23 59 Other notes payable 60 516 Total debt 144,083 190,575 Less current maturities 77 551 Total long-term debt $ 144,006 $ 190,024 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 an unsecured revolving credit facility with certain lenders under its Amended and Restated Revolving Credit Agreement ("Agreement"). The aggregate commitments from lenders under this Agreement are $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 Agreement requires us to maintain various financial covenants including a minimum earnings before interest and tax to interest expense ratio, a maximum 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 Agreement also contains other customary covenants, representations and events of defaults. The expiration date of the revolving credit facility is May 12, 2019 . As of December 31, 2015 , $144,000,000 was outstanding under the Agreement. On December 31, 2015 , $2,303,000 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 $103,697,000 in available borrowings. As of December 31, 2015 , the Company is in compliance with the terms and conditions of the Agreement. The aggregate maturities of long-term debt, as of December 31, 2015 , are as follows: $ 60,000 in 2016 ; zero in 2017 and 2018 ; $144,000,000 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, 2015 and 2014 , 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, 2015 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS 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 that are recognized and measured on a fair value 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, 2015 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The jurisdictional components of income before taxes consist of the following: December 31, (in thousands) 2015 2014 2013 Income before income taxes: Domestic $ 52,313 $ 43,345 $ 35,146 Foreign 14,554 17,260 16,242 $ 66,867 $ 60,605 $ 51,388 The components of income tax expense (benefit) consist of the following: December 31, (in thousands) 2015 2014 2013 Current: Domestic $ 13,293 $ 13,495 $ 10,605 Foreign 4,614 3,382 3,200 State 2,947 2,685 2,366 20,854 19,562 16,171 Deferred: Domestic 3,481 (600 ) (1,074 ) Foreign (718 ) 540 249 State 41 (48 ) (52 ) 2,804 (108 ) (877 ) Total income taxes $ 23,658 $ 19,454 $ 15,294 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) 2015 2014 2013 Domestic statutory rate at 35% $ 23,403 $ 21,212 $ 17,985 Increase (reduction) from: Jurisdictional rate differences (2,192 ) (2,119 ) (1,959 ) Valuation allowance 797 353 (114 ) Stock based compensation 257 199 136 U.S. state taxes 1,942 1,649 1,496 Domestic production deduction (518 ) (1,321 ) (1,162 ) R&D credit (475 ) (614 ) (856 ) Other, net 444 95 (232 ) Provision for income taxes $ 23,658 $ 19,454 $ 15,294 Effective tax rate 35 % 32 % 30 % 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) 2015 2014 Deferred income tax assets: Inventory basis difference $ 2,241 $ 1,051 Accounts receivable reserve 529 394 Depreciation 110 — Stock based compensation 968 1,284 Pension liability 2,481 3,018 Employee benefit accrual 2,038 1,448 Product liability and warranty reserves 1,517 1,480 Expenses not currently deductible for tax purposes 60 410 Foreign net operating loss 2,726 1,379 State net operating loss 49 10 Other 194 — Total deferred income tax assets $ 12,913 $ 10,474 Less: Valuation allowance (1,651 ) (1,064 ) Net deferred income tax assets $ 11,262 $ 9,410 Deferred income tax liabilities: Inventory basis differences $ (310 ) $ — Depreciation (4,624 ) (2,786 ) Intangible assets (7,934 ) (2,144 ) Deferred revenue — 38 Expenses not currently deductible for tax purposes (642 ) (356 ) Total deferred income tax liabilities $ (13,510 ) $ (5,248 ) Net deferred income tax liabilities and assets $ (2,248 ) $ 4,162 As of December 31, 2015 , 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 carryforwards are in the approximate amount of $7,400,000 with an unlimited carryforward period, and $1,700,000 with a carry forward expiring in 2035. The Company also has U.S. state net operating loss carryforwards in the amount of $100,000 which will expire between 2015 to 2028. The company recorded a valuation allowance as of December 31, 2015 and 2014 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, 2015 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, 2015 , the cumulative undistributed earnings of these subsidiaries approximated $ 162,526,000 . 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. In November 2015, the FASB issued ASU No. 2015-17, Balance Sheet Classification of Deferred Taxes, which requires that the net of deferred tax assets and liabilities be classified as non-current on the balance sheet by jurisdiction rather than being separately presented as current and non-current portions. We are required to adopt the new standard beginning with our first quarterly filing in 2017; however, early adoption is permitted and the standard may be applied either retrospectively or on a prospective basis to all deferred tax assets and liabilities. On December 31, 2015, we elected to early adopt ASU No. 2015-17 prospectively, thus reclassifying $6,500,000 of current deferred tax assets and $300,000 of current deferred tax liabilities to non-current on the accompanying consolidated balance sheet. The prior reporting period was not retrospectively adjusted. 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 $301,000 and $388,000 for 2015 and 2014 , respectively, are included in other non-current 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, 2015 2014 Balance as of beginning of year $ 388,000 $ 146,000 Additions for tax positions related to the current year 63,000 63,000 Additions for tax positions related to prior years — 262,000 Reduction due to lapse of statute of limitations (150,000 ) (83,000 ) Balance as of end of year $ 301,000 $ 388,000 The Company adopted the policy to include interest and penalty expense related to income taxes as interest and other expense, respectively. As of December 31, 2015, $36,000 of interest and penalties have been accrued. We operate in multiple tax jurisdictions, both inside and outside the United States and are currently under audit by certain state and foreign tax authorities. In general, the tax years 2012 through 2015 remain open in the major taxing jurisdictions, with some state and foreign jurisdictions remaining open longer, as the result of net operating losses and longer statutes of limitation periods. |
Common Stock
Common Stock | 12 Months Ended |
Dec. 31, 2015 | |
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 2015 or 2014 under this authorization. The authorization to repurchase up to 1,000,000 shares was revoked by the Board of Directors on August 6, 2015. 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 4, 2016, the Board of Directors of the Company declared a quarterly dividend of $0.09 per share which was paid on January 29, 2016 to holders of record as of January 15, 2016. |
Stock Options
Stock Options | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
STOCK OPTIONS | STOCK OPTIONS Incentive Options On May 7, 2015, the stockholders of the Company approved the 2015 Incentive Stock Option Plan (“2015 ISO Plan”) and the Company reserved 400,000 shares of common stock for options to be issued under the 2015 ISO Plan. During the year ended December 31, 2015 , options to purchase 29,500 shares 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. 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, 2015 , 2014 , and 2013 , options to purchase zero shares, 48,250 shares and 49,000 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. No further option grants can be made under this plan as of 2015. Following is a summary of activity in the Incentive Stock Option Plans for the periods indicated: 2015 2014 2013 Shares Exercise Price* Shares Exercise Price* Shares Exercise Price* Options outstanding at beginning of year 301,800 $ 30.73 292,350 $ 26.68 330,730 $ 21.82 Granted 29,500 53.95 48,250 52.67 49,000 42.70 Exercised (75,355 ) 26.11 (27,700 ) 24.33 (81,880 ) 16.77 Canceled (1,750 ) 53.61 (11,100 ) 35.42 (5,500 ) 24.24 Options outstanding at end of year 254,195 34.64 301,800 30.73 292,350 26.68 Options exercisable at end of year 143,345 $ 25.69 172,450 $ 22.30 154,950 $ 21.57 Options available for grant at end of year 370,750 28,950 66,100 *Weighted Averages Options outstanding and exercisable at December 31, 2015 were as follows: Qualified Stock Options Options Outstanding Options Exercisable Shares Remaining Contractual Life (yrs)* Exercise Price* Shares Exercise Price* Range of Exercise Price $11.45 - $22.39 43,225 2.99 $ 12.72 43,225 $ 12.72 $22.55 - $42.70 138,970 5.40 $ 31.88 91,570 $ 29.30 $49.44 - $54.24 72,000 8.83 $ 53.12 8,550 $ 52.56 Total 254,195 143,345 *Weighted Averages The weighted-average grant-date fair values of options granted during 2015 , 2014 , and 2013 were $ 27.63 , $ 27.23 and $ 20.56 , respectively. As of December 31, 2015 , there was $ 1,713,000 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 as of 2009. 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: 2015 2014 2013 Shares Exercise Price* Shares Exercise Price* Shares Exercise Price* Options outstanding at beginning of year 132,100 $ 31.30 114,700 $ 24.87 89,700 $ 19.91 Granted — — 29,000 53.51 25,000 42.70 Exercised (4,800 ) 11.45 (11,600 ) 23.29 — — Cancelled — — — — — — Options outstanding at end of year 127,300 32.05 132,100 31.30 114,700 24.87 Options exercisable at end of year 83,100 $ 24.54 71,100 $ 19.85 57,900 $ 19.89 Options available for grant at end of year 232,522 258,526 293,526 *Weighted Averages Options outstanding and exercisable as of December 31, 2015 were as follows: Non-Qualified Stock Options Options Outstanding Options Exercisable Shares Remaining Contractual Life (yrs)* Exercise Price* Shares Exercise Price* Range of Exercise Price $11.45 - $22.39 30,800 3.36 $ 11.45 30,800 $ 11.45 $22.55 - $42.70 67,500 5.33 32.23 46,500 29.59 $49.44 - $54.24 29,000 8.37 $ 53.51 5,800 $ 53.51 Total 127,300 83,100 *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 2015 . As of December 31, 2015 , there was $ 80,000 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 2015 , 2014 , and 2013 , 4,800 , 11,600 , and zero non-qualified options were exercised, respectively, $ 55,000 , $ 270,000 , and $ 0 of cash receipts were received, respectively, and tax deductions of $ 187,000 , $ 262,000 , and $ 0 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: 2015 2014 2013 Shares Exercise Price* Shares Exercise Price* Shares Exercise Price* Options outstanding at beginning of year 12,043 $ 44.10 10,724 $ 32.49 11,375 $ 24.24 Granted 26,004 54.14 6,000 53.51 4,224 42.70 Exercised (5,431 ) 36.85 (4,681 ) 29.56 (4,875 ) 22.07 Cancelled — — — — — — Options outstanding at end of year 32,616 53.31 12,043 44.10 10,724 32.49 *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 2015 , 2014 , and 2013 were 3.11 , 2.39 and 2.09 , respectively. As of December 31, 2015 , there was $ 1,242,000 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, 2015 | |
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 332 former employees and 115 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 241 former employees and 80 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, 2015 (in thousands) Hourly Employees’ Retirement Plan Total Change in projected benefit obligation Benefit obligation at beginning of year $ 10,456 $ 21,595 $ 32,051 Service cost 9 4 13 Interest cost 405 868 1,273 Liability actuarial loss (gain) (574 ) (1,125 ) (1,699 ) Benefits paid (647 ) (781 ) (1,428 ) Benefit obligation at end of year 9,649 20,561 30,210 Change in fair value of plan assets Fair value of plan assets at beginning of year 9,223 17,114 26,337 Return on plan assets (149 ) (273 ) (422 ) Employer contributions 592 632 1,224 Benefits paid (647 ) (781 ) (1,428 ) Fair value of plan assets at end of year 9,019 16,692 25,711 Underfunded status – December 31, 2015 $ (630 ) $ (3,869 ) $ (4,499 ) Year Ended December 31, 2014 (in thousands) Hourly Employees’ Pension Plan Employees’ Retirement Plan Total 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 (gain) loss 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 ) 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 $4,499,000 and $5,714,000 as of December 31, 2015 and 2014 , 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’ Pension Plan Employees’ Retirement Plan 2015 2014 2015 2014 Discount rate 4.30% 4.00% 4.40% 4.10% 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’ Pension Plan Employees’ Retirement Plan 2015 2014 2015 2014 Discount rate 4.00% 4.60% 4.10% 4.75% 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, 2015 (in thousands) Hourly Employees’ Pension Plan Employees’ Retirement Plan Total Service cost $ 9 $ 4 $ 13 Interest cost 405 868 1,273 Expected return on plan assets (661 ) (1,229 ) (1,890 ) Amortization of net loss (gain) 248 401 649 Net periodic benefit cost $ 1 $ 44 $ 45 Year Ended December 31, 2014 (in thousands) Hourly Employees’ Pension Plan Employees’ Retirement Plan Total 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 ) The Company estimates that $ 724,000 of unrecognized actuarial expense will be amortized from accumulated other comprehensive income (loss) into net periodic benefit costs during 2016 . 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’ Pension Plan Employees’ Retirement Plan 2015 2014 2015 2014 Equity securities 55% 53% 55% 55% Debt securities 37% 38% 37% 38% Short-term investments 3% 5% 3% 3% Other 5% 4% 5% 4% Total 100% 100% 100% 100% As of December 31, 2015 , we used the following valuation techniques to measure fair value for assets. There were no changes to these methodologies during 2015 : 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: (in thousands) December 31, 2015 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Mutual Funds: Mid Cap $ 1,623 $ 1,623 $ — $ — Large Cap 4,411 4,411 International 2,915 2,915 Common/Collective: Liability Driven Solution 3,543 3,543 Wells Fargo International Equity Index Fund 1,080 1,080 Wells Fargo Core Bond 1,774 1,774 Wells Fargo/Causeway 1,112 1,112 Wells Fargo Large Cap Growth Index Fund 1,429 1,429 Wells Fargo Large Cap Value Index Fund 1,415 1,415 Wells Fargo Multi-Manager Small Cap 1,707 1,707 Wells Fargo Russell 2000 Index Fund 800 800 Wells Fargo S&P Mid Cap Index Fund 942 942 Wells Fargo/MFS Value CIT F 736 736 Wells Fargo/T Rowe Price I Large-Cap Growth Managed CIT 749 749 T. Rowe Price Equity Income 738 738 Cash & Short-term Investments 737 737 Total $ 25,711 $ 9,686 $ 16,025 $ — (in thousands) December 31, 2014 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) 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 $ — 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, 2015 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, 2015 . The following table illustrates the estimated pension benefit payments that are projected to be paid: (in thousands) Hourly Employees’ Employees’ Retirement Plan Total 2016 $ 635 $ 926 $ 1,561 2017 640 1,036 1,676 2018 648 1,132 1,780 2019 655 1,165 1,820 2020 655 1,207 1,862 Years 2021 through 2025 $ 3,156 $ 6,512 $ 9,668 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, 2015 and 2014 , is shown below, in thousands: Year Ended December 31, (in thousands) 2015 2014 Benefit obligation at January 1, $ 3,732 $ 3,021 Service cost 121 152 Interest cost 137 138 Liability actuarial loss (gain) (24 ) 421 Benefits Paid (4 ) — Plan amendments — — Benefit obligation at December 31, $ 3,962 $ 3,732 The components of net periodic pension expense were as follows, in thousands: Year Ended December 31, (in thousands) 2015 2014 Service cost $ 121 $ 152 Interest cost 137 138 Amortization of prior service cost 342 270 Net periodic benefit cost $ 600 $ 560 The Company estimates that $311,000 of unrecognized actuarial expense will be amortized from accumulated other comprehensive income into net periodic benefit costs during 2016 . 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: 2015 2014 Discount rate 4.05% 3.70% Composite rate of compensation increase 3.00% 3.00% Assumptions used to determine net periodic benefit cost for the years ended December 31: 2015 2014 Discount rate 3.70% 4.60% 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: 2016 $ 108 2017 151 2018 261 2019 262 2020 264 Years 2021 through 2025 $ 1,522 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 $ 414,000 and $ 378,000 to the IAM Plan for the plan years ended December 31, 2015 and 2014 , 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 2015 , 2014 and 2013 were $ 1,871,000 , $ 1,466,000 , and $ 1,331,000 , 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 $ 864,000 , $ 806,000 , and $ 697,000 for the years ended December 31, 2015 , 2014 and 2013 , respectively. |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | SEGMENT REPORTING The Company reports three business segments: Industrial, 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, 2015 , 2014 , and 2013 : December 31, (in thousands) 2015 2014 2013 Net Revenue Industrial $ 498,761 $ 436,018 $ 297,857 Agricultural 208,257 214,326 219,354 European 172,559 188,711 164,879 Consolidated $ 879,577 $ 839,055 $ 682,090 Income from Operations Industrial $ 42,194 $ 39,377 $ 25,743 Agricultural 17,295 11,714 17,880 European 7,039 11,573 7,114 Consolidated $ 66,528 $ 62,664 $ 50,737 The following table presents the goodwill and total identifiable assets by reporting segment for the years ended December 31, 2015 and 2014 : (in thousands) December 31, 2015 December 31, 2014 Goodwill Industrial $ 56,293 $ 57,320 Agricultural 2,984 695 European 16,232 17,676 Consolidated $ 75,509 $ 75,691 Total Identifiable Assets Industrial $ 370,642 $ 367,096 Agricultural 110,489 113,286 European 122,372 152,504 Consolidated $ 603,503 $ 632,886 |
International Operations and Ge
International Operations and Geographic Information | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
INTERNATIONAL OPERATIONS AND GEOGRAPHIC INFORMATION | 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) 2015 2014 2013 Net sales $ 243,108 $ 260,874 $ 236,839 Income from operations 9,682 15,840 14,822 Income before income taxes 15,840 17,315 16,241 Identifiable assets $ 194,839 $ 219,036 $ 205,317 Following is other selected geographic financial information on the Company’s operations: December 31, (in thousands) 2015 2014 2013 Geographic net sales: United States $ 635,923 $ 571,817 $ 449,119 United Kingdom 59,621 58,976 36,892 France 80,762 93,699 97,959 Canada 44,388 54,087 45,212 Australia 13,801 13,702 11,519 Other 45,082 46,774 41,389 Total net sales $ 879,577 $ 839,055 $ 682,090 Geographic location of long-lived assets: United States $ 174,811 $ 168,404 $ 42,053 United Kingdom 20,338 20,840 19,718 France 18,755 21,728 25,751 Canada 21,466 23,354 12,562 Australia 1,189 1,358 768 Brazil 2,742 — — Total long-lived assets $ 239,301 $ 235,684 $ 100,852 Net sales are attributed to countries based on the location of customers. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 , future minimum lease payments under these non-cancelable leases and the present value of the net minimum lease payments for the capitalized leases are: (in thousands) Operating Leases Capitalized Leases 2016 $ 3,046 $ 18 2017 2,301 6 2018 1,535 — 2019 905 — 2020 354 — Thereafter 195 — Total minimum lease payments $ 8,336 $ 24 Less amount representing interest 1 Present value of net minimum lease payments $ 23 Less current portion 17 Long-term portion $ 6 Rental expense for operating leases was $ 4,295,000 for 2015 , $ 3,666,000 for 2014 , and $ 2,293,000 for 2013 . Purchase obligations of $ 117,180,000 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. The remediation process has been completed. On August 6, 2015, Bush Hog received a letter of concurrence from the Alabama Department of Environmental Management concluding that Bush Hog had successfully remediated that property and that the site was eligible for liability protection under the Land Recycling and Economic Redevelopment Act for contamination discovered and addressed under Bush Hog's voluntary cleanup plan. 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 requested a new trial. A hearing on the appeal was held on October 8, 2015. A final ruling on the appeal is expected in 2016. Certain assets 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 Information
Quarterly Financial Information (Unaudited) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
QUARTERLY FINANCIAL DATA (Unaudited) | QUARTERLY FINANCIAL DATA (Unaudited) Summarized quarterly financial data for 2015 and 2014 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) 2015 2014 First Second Third Fourth First Second Third Fourth Sales $ 207,798 $ 215,734 $ 231,614 $ 224,431 $ 172,610 $ 207,751 $ 234,783 $ 223,911 Gross profit 45,537 50,665 57,509 48,737 38,130 47,286 55,440 48,372 Net income 7,359 9,710 14,756 11,384 7,238 9,195 13,367 11,351 Earnings per share Diluted $ 0.64 $ 0.84 $ 1.28 $ 0.99 $ 0.59 $ 0.75 $ 1.10 $ 1.00 Average shares Diluted 11,436 11,498 11,496 11,500 12,270 12,276 12,205 11,403 Dividends per share $ 0.08 0.08 $ 0.08 $ 0.08 $ 0.07 $ 0.07 $ 0.07 $ 0.07 Market price of common stock High $ 63.39 $ 64.45 $ 55.12 $ 57.51 $ 60.65 $ 57.86 $ 55.84 $ 52.13 Low $ 44.74 $ 48.10 $ 44.48 $ 43.98 $ 46.87 $ 49.50 $ 40.75 $ 37.93 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. |
Significant Accounting Polici28
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
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. Such estimates include, but are not limited to, allowance for doubtful accounts, reserve for sales discounts, estimated realizable value on obsolete and slow-moving inventory; warranty reserve, estimates related to pension accounting; estimates related to fair value for purposes of assessing goodwill, long-lived assets and intangible assets for impairment; estimates related to income taxes; and estimates related to contingencies. |
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 limit its exposure to certain foreign currency transactions. The Company does not hold or issue financial instruments for trading purposes. |
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. Inventory costs include those costs directly attributable to products, including raw materials, labor and overhead. |
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. |
Long-lived assets | Long-lived assets Long-lived assets, such as property, plant and equipment, rental equipment, and purchased intangibles subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If circumstances require a long-lived asset or asset group to be tested for possible impairment, the Company first compares non-discounted cash flows expected to be generated by that asset group to its carrying amount. If the carrying amount of the long-lived asset or asset group is not recoverable on an non-discounted cash flow basis, an impairment is recognized to the extent that the carrying amount exceeds fair value. Fair value is determined through various valuation techniques including discounted cash flow models, quoted market values and third-party independent appraisals, as considered necessary. |
Goodwill | Goodwill Goodwill consists of the excess of the purchase price over the fair value of identifiable net assets of businesses acquired. We test goodwill and intangible assets for impairment annually, at the reporting unit level, and whenever events or circumstances make it likely that an impairment may have occurred, such as a significant adverse change in the business climate or a decision to sell all or a portion of a reporting unit. During the third quarter of 2015, the Company changed its annual goodwill and intangible assets impairment testing date from December 31 to October 1. Management considers this accounting change preferable because it allows the Company additional time to complete the annual goodwill test. This change does not accelerate, delay, avoid, or cause an impairment charge, nor does this change result in adjustments to previously issued financial statements. We perform our annual goodwill and intangible assets impairment test 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 and intangible assets 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 and intangible assets. If the fair value of the reporting unit exceeds its carrying value, the goodwill and intangible assets are 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 and intangible assets are 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 and intangible assets are 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, 2015 , goodwill was $ 75,509,000 , which represents 13% of total assets. The Company recognized no goodwill impairment in 2015 , 2014 , or 2013 . During the 2015 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 October 1, 2015 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, 2015 was $47,450,000 and $51,484,000 at December 31, 2014 . 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, 2015 and December 31, 2014 . 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 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 The Company records annual amounts relating to its pension and post-retirement plans based on calculations that incorporate various actuarial and other assumptions, including discount rates, mortality, assumed rates of return, compensation increases, turnover rates and health care cost trend rates. The Company reviews its assumptions on an annual basis and makes modifications to the assumptions based on current rates and trends when it is appropriate to do so. The effect of modifications to those assumptions is recorded in accumulated other comprehensive income and amortized to net periodic cost over future periods using the corridor method. The Company believes that the assumptions utilized in recording its obligations under its plans are reasonable based on its experience and market conditions. The net periodic costs are recognized as employees render the services necessary to earn the post-retirement benefits. |
Related Party Transactions | Related Party Transactions There were no reportable relationships or related party transactions for the years ended December 31, 2015 , 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. The Company enters into operating lease agreements with customers related to the rental of certain equipment. The rental income is recognized ratably over the term of the leases. Sales taxes collected from customers and remitted to governmental authorities are accounted for on a net basis and therefore are excluded from revenues in the consolidated statements of operations. |
Rental Equipment | Rental Equipment The Company enters into operating lease agreements with customers related to the rental of certain equipment. 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. |
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. |
Commitments, Contingencies and Legal Costs | Commitments, Contingencies and Legal Costs Liabilities for loss contingencies arising from claims, assessments, litigation, fines and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount can be reasonably estimated. 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. Excess tax benefits or awards that are recognized in equity related to stock option exercises are reflected as cash flows from financing activities in the statement of cash flows. 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. |
Earnings per common share (EPS) | Earnings per common share (“EPS”) Basic EPS is computed using the weighted-average number of common shares outstanding during the year. The treasury stock method is used to compute diluted EPS which gives effect to the potential dilution of earnings that could have occurred if additional shares were issued for awards granted under the Company’s incentive stock option plans. The treasury stock method assumes proceeds that would be obtained upon exercise of awards granted under the incentive stock option plans are used to purchase outstanding common stock at the average market price during the period. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments 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. 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, 2015 and 2014 , 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 $ 9,675,000 on December 31, 2015 and $ 7,601,000 on December 31, 2014 to cover obsolete and slow moving inventory. The increase in the reserve was mainly from the Company's Industrial 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 Polici29
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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 2015 , 2014 , and 2013 : December 31, 2015 2014 2013 Risk-free interest rate 2.00 % 2.24 % 1.38 % Dividend yield 0.6 % 0.5 % 0.8 % Volatility factors 48.8 % 48.2 % 47.9 % Weighted-average expected life 8.0 years 8.0 years 8.0 years |
Acquisitions and Investments (T
Acquisitions and Investments (Tables) - Specialized Industries LP | 12 Months Ended |
Dec. 31, 2015 | |
Business Acquisition [Line Items] | |
Schedule of Business Acquisitions, by Acquisition | The final amounts assigned to the assets acquired and liabilities assumed in the Specialized acquisition were recognized at their acquisition-date fair values and are as follows (in thousands): Cash $ 2,025 Accounts receivable 16,290 Inventory 47,500 Prepaid expenses 3,223 Rental equipment 28,446 Property, plant & equipment 13,214 Intangible assets 53,900 Other assets 675 Deferred income tax (6,023 ) Other liabilities assumed (10,962 ) Net assets assumed $ 148,288 Goodwill 44,611 Acquisition Price $ 192,899 |
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 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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) 2015 2014 2013 Net income $ 43,209 $ 41,151 $ 36,094 Average common shares: Basic (weighted-average outstanding shares) 11,349 11,875 12,050 Dilutive potential common shares from stock options 133 164 162 Diluted (weighted-average outstanding shares) 11,482 12,039 12,212 Basic earnings per share $ 3.81 $ 3.47 $ 3.00 Diluted earnings per share $ 3.76 $ 3.42 $ 2.96 |
Valuation and Qualifying Acco32
Valuation and Qualifying Accounts (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Receivables [Abstract] | |
Schedule Of Valuation And Qualifying Accounts | Valuation and qualifying accounts included the following: (in thousands) Balance Beginning of Year Net Charged to Costs and Expenses Translations, Reclassifications and Acquisitions Net Write-Offs or Discounts Taken Balance End of Year 2015 Allowance for doubtful accounts $ 2,853 $ 965 $ (185 ) $ (149 ) $ 3,484 Reserve for sales discounts 15,999 78,304 (145 ) (79,064 ) 15,094 Reserve for inventory obsolescence 7,601 5,209 (454 ) (2,681 ) 9,675 Reserve for warranty 5,913 7,732 (325 ) (7,754 ) 5,566 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 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current | Inventories consisted of the following on a cost basis, net of reserves: December 31, (in thousands) 2015 2014 Finished goods and parts $ 129,995 $ 112,197 Work in process 9,561 18,635 Raw materials 11,202 35,256 $ 150,758 $ 166,088 |
Property Plant and Equipment (T
Property Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, plant and equipment consist of the following: December 31, (in thousands) 2015 2014 Useful Lives Land $ 9,478 $ 9,181 Buildings and improvements 73,828 72,514 5-20 yrs. Machinery and equipment 70,791 66,799 3-10 yrs. Office furniture and equipment 7,128 6,254 3-7 yrs. Computer software 11,298 11,283 3-7 yrs. Transportation equipment 5,521 5,636 3 yrs. 178,044 171,667 Accumulated depreciation (107,094 ) (100,497 ) $ 70,950 $ 71,170 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The changes in the carrying amount of goodwill for the twelve months ended December 31, 2013 , 2014 , and 2015 are as follows: (in thousands) Balance at December 31, 2012 $ 31,648 Translation adjustment 425 Balance at December 31, 2013 $ 32,073 Translation adjustment (2,217 ) Goodwill acquired $ 45,835 Balance at December 31, 2014 $ 75,691 Translation adjustment (3,181 ) Goodwill acquired 2,999 Balance at December 31, 2015 $ 75,509 |
Definite and Indefinite Lived36
Definite and Indefinite Lived Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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, 2014 Definite: Trade names and trademarks 25 years $ 21,878 $ 22,104 Customer and dealer relationships 14 years 28,715 29,404 Patents and drawings 12 years 1,893 1,968 Total at cost 52,486 53,476 Less accumulated amortization 5,036 1,992 Total net 47,450 51,484 Indefinite: Trade names and trademarks 5,500 5,500 Total Intangible Assets $ 52,950 $ 56,984 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Liabilities | Accrued liabilities consist of the following balances: December 31, (in thousands) 2015 2014 Salaries, wages and bonuses $ 19,270 $ 20,635 Warranty 5,566 5,913 State taxes 2,180 3,997 Other 11,125 10,457 $ 38,141 $ 41,002 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of Components of Long-Term Debt | The components of long-term debt are as follows: December 31, (in thousands) 2015 2014 Bank revolving credit facility $ 144,000 $ 190,000 Capital lease obligations 23 59 Other notes payable 60 516 Total debt 144,083 190,575 Less current maturities 77 551 Total long-term debt $ 144,006 $ 190,024 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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) 2015 2014 2013 Income before income taxes: Domestic $ 52,313 $ 43,345 $ 35,146 Foreign 14,554 17,260 16,242 $ 66,867 $ 60,605 $ 51,388 |
Schedule of Components of Income Tax Expense (Benefit) | The components of income tax expense (benefit) consist of the following: December 31, (in thousands) 2015 2014 2013 Current: Domestic $ 13,293 $ 13,495 $ 10,605 Foreign 4,614 3,382 3,200 State 2,947 2,685 2,366 20,854 19,562 16,171 Deferred: Domestic 3,481 (600 ) (1,074 ) Foreign (718 ) 540 249 State 41 (48 ) (52 ) 2,804 (108 ) (877 ) Total income taxes $ 23,658 $ 19,454 $ 15,294 |
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) 2015 2014 2013 Domestic statutory rate at 35% $ 23,403 $ 21,212 $ 17,985 Increase (reduction) from: Jurisdictional rate differences (2,192 ) (2,119 ) (1,959 ) Valuation allowance 797 353 (114 ) Stock based compensation 257 199 136 U.S. state taxes 1,942 1,649 1,496 Domestic production deduction (518 ) (1,321 ) (1,162 ) R&D credit (475 ) (614 ) (856 ) Other, net 444 95 (232 ) Provision for income taxes $ 23,658 $ 19,454 $ 15,294 Effective tax rate 35 % 32 % 30 % |
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) 2015 2014 Deferred income tax assets: Inventory basis difference $ 2,241 $ 1,051 Accounts receivable reserve 529 394 Depreciation 110 — Stock based compensation 968 1,284 Pension liability 2,481 3,018 Employee benefit accrual 2,038 1,448 Product liability and warranty reserves 1,517 1,480 Expenses not currently deductible for tax purposes 60 410 Foreign net operating loss 2,726 1,379 State net operating loss 49 10 Other 194 — Total deferred income tax assets $ 12,913 $ 10,474 Less: Valuation allowance (1,651 ) (1,064 ) Net deferred income tax assets $ 11,262 $ 9,410 Deferred income tax liabilities: Inventory basis differences $ (310 ) $ — Depreciation (4,624 ) (2,786 ) Intangible assets (7,934 ) (2,144 ) Deferred revenue — 38 Expenses not currently deductible for tax purposes (642 ) (356 ) Total deferred income tax liabilities $ (13,510 ) $ (5,248 ) Net deferred income tax liabilities and assets $ (2,248 ) $ 4,162 |
Schedule of Unrecognized Tax Benefits Roll Forward | December 31, 2015 2014 Balance as of beginning of year $ 388,000 $ 146,000 Additions for tax positions related to the current year 63,000 63,000 Additions for tax positions related to prior years — 262,000 Reduction due to lapse of statute of limitations (150,000 ) (83,000 ) Balance as of end of year $ 301,000 $ 388,000 |
Stock Options (Tables)
Stock Options (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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: 2015 2014 2013 Shares Exercise Price* Shares Exercise Price* Shares Exercise Price* Options outstanding at beginning of year 12,043 $ 44.10 10,724 $ 32.49 11,375 $ 24.24 Granted 26,004 54.14 6,000 53.51 4,224 42.70 Exercised (5,431 ) 36.85 (4,681 ) 29.56 (4,875 ) 22.07 Cancelled — — — — — — Options outstanding at end of year 32,616 53.31 12,043 44.10 10,724 32.49 *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: 2015 2014 2013 Shares Exercise Price* Shares Exercise Price* Shares Exercise Price* Options outstanding at beginning of year 301,800 $ 30.73 292,350 $ 26.68 330,730 $ 21.82 Granted 29,500 53.95 48,250 52.67 49,000 42.70 Exercised (75,355 ) 26.11 (27,700 ) 24.33 (81,880 ) 16.77 Canceled (1,750 ) 53.61 (11,100 ) 35.42 (5,500 ) 24.24 Options outstanding at end of year 254,195 34.64 301,800 30.73 292,350 26.68 Options exercisable at end of year 143,345 $ 25.69 172,450 $ 22.30 154,950 $ 21.57 Options available for grant at end of year 370,750 28,950 66,100 *Weighted Averages |
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range | Options outstanding and exercisable at December 31, 2015 were as follows: Qualified Stock Options Options Outstanding Options Exercisable Shares Remaining Contractual Life (yrs)* Exercise Price* Shares Exercise Price* Range of Exercise Price $11.45 - $22.39 43,225 2.99 $ 12.72 43,225 $ 12.72 $22.55 - $42.70 138,970 5.40 $ 31.88 91,570 $ 29.30 $49.44 - $54.24 72,000 8.83 $ 53.12 8,550 $ 52.56 Total 254,195 143,345 *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: 2015 2014 2013 Shares Exercise Price* Shares Exercise Price* Shares Exercise Price* Options outstanding at beginning of year 132,100 $ 31.30 114,700 $ 24.87 89,700 $ 19.91 Granted — — 29,000 53.51 25,000 42.70 Exercised (4,800 ) 11.45 (11,600 ) 23.29 — — Cancelled — — — — — — Options outstanding at end of year 127,300 32.05 132,100 31.30 114,700 24.87 Options exercisable at end of year 83,100 $ 24.54 71,100 $ 19.85 57,900 $ 19.89 Options available for grant at end of year 232,522 258,526 293,526 *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, 2015 were as follows: Non-Qualified Stock Options Options Outstanding Options Exercisable Shares Remaining Contractual Life (yrs)* Exercise Price* Shares Exercise Price* Range of Exercise Price $11.45 - $22.39 30,800 3.36 $ 11.45 30,800 $ 11.45 $22.55 - $42.70 67,500 5.33 32.23 46,500 29.59 $49.44 - $54.24 29,000 8.37 $ 53.51 5,800 $ 53.51 Total 127,300 83,100 *Weighted Averages |
Retirement Benefit Plans (Table
Retirement Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 (in thousands) Hourly Employees’ Retirement Plan Total Change in projected benefit obligation Benefit obligation at beginning of year $ 10,456 $ 21,595 $ 32,051 Service cost 9 4 13 Interest cost 405 868 1,273 Liability actuarial loss (gain) (574 ) (1,125 ) (1,699 ) Benefits paid (647 ) (781 ) (1,428 ) Benefit obligation at end of year 9,649 20,561 30,210 Change in fair value of plan assets Fair value of plan assets at beginning of year 9,223 17,114 26,337 Return on plan assets (149 ) (273 ) (422 ) Employer contributions 592 632 1,224 Benefits paid (647 ) (781 ) (1,428 ) Fair value of plan assets at end of year 9,019 16,692 25,711 Underfunded status – December 31, 2015 $ (630 ) $ (3,869 ) $ (4,499 ) Year Ended December 31, 2014 (in thousands) Hourly Employees’ Pension Plan Employees’ Retirement Plan Total 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 (gain) loss 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 ) |
Schedule of Assumptions Used | Assumptions used to determine benefit obligations at December 31: Hourly Employees’ Pension Plan Employees’ Retirement Plan 2015 2014 2015 2014 Discount rate 4.30% 4.00% 4.40% 4.10% 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’ Pension Plan Employees’ Retirement Plan 2015 2014 2015 2014 Discount rate 4.00% 4.60% 4.10% 4.75% 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, 2015 (in thousands) Hourly Employees’ Pension Plan Employees’ Retirement Plan Total Service cost $ 9 $ 4 $ 13 Interest cost 405 868 1,273 Expected return on plan assets (661 ) (1,229 ) (1,890 ) Amortization of net loss (gain) 248 401 649 Net periodic benefit cost $ 1 $ 44 $ 45 Year Ended December 31, 2014 (in thousands) Hourly Employees’ Pension Plan Employees’ Retirement Plan Total 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 ) |
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’ Pension Plan Employees’ Retirement Plan 2015 2014 2015 2014 Equity securities 55% 53% 55% 55% Debt securities 37% 38% 37% 38% Short-term investments 3% 5% 3% 3% Other 5% 4% 5% 4% 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: (in thousands) December 31, 2015 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Mutual Funds: Mid Cap $ 1,623 $ 1,623 $ — $ — Large Cap 4,411 4,411 International 2,915 2,915 Common/Collective: Liability Driven Solution 3,543 3,543 Wells Fargo International Equity Index Fund 1,080 1,080 Wells Fargo Core Bond 1,774 1,774 Wells Fargo/Causeway 1,112 1,112 Wells Fargo Large Cap Growth Index Fund 1,429 1,429 Wells Fargo Large Cap Value Index Fund 1,415 1,415 Wells Fargo Multi-Manager Small Cap 1,707 1,707 Wells Fargo Russell 2000 Index Fund 800 800 Wells Fargo S&P Mid Cap Index Fund 942 942 Wells Fargo/MFS Value CIT F 736 736 Wells Fargo/T Rowe Price I Large-Cap Growth Managed CIT 749 749 T. Rowe Price Equity Income 738 738 Cash & Short-term Investments 737 737 Total $ 25,711 $ 9,686 $ 16,025 $ — (in thousands) December 31, 2014 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) 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 $ — |
Schedule of Expected Benefit Payments | The following table illustrates the estimated pension benefit payments that are projected to be paid: (in thousands) Hourly Employees’ Employees’ Retirement Plan Total 2016 $ 635 $ 926 $ 1,561 2017 640 1,036 1,676 2018 648 1,132 1,780 2019 655 1,165 1,820 2020 655 1,207 1,862 Years 2021 through 2025 $ 3,156 $ 6,512 $ 9,668 |
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: 2015 2014 Discount rate 4.05% 3.70% Composite rate of compensation increase 3.00% 3.00% Assumptions used to determine net periodic benefit cost for the years ended December 31: 2015 2014 Discount rate 3.70% 4.60% 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) 2015 2014 Service cost $ 121 $ 152 Interest cost 137 138 Amortization of prior service cost 342 270 Net periodic benefit cost $ 600 $ 560 |
Schedule of Expected Benefit Payments | Future estimated benefits expected to be paid from the plan over the next ten years as follows in thousands: 2016 $ 108 2017 151 2018 261 2019 262 2020 264 Years 2021 through 2025 $ 1,522 |
Schedule of Defined Benefit Plans Disclosures | The change in the Projected Benefit Obligation (PBO) as of December 31, 2015 and 2014 , is shown below, in thousands: Year Ended December 31, (in thousands) 2015 2014 Benefit obligation at January 1, $ 3,732 $ 3,021 Service cost 121 152 Interest cost 137 138 Liability actuarial loss (gain) (24 ) 421 Benefits Paid (4 ) — Plan amendments — — Benefit obligation at December 31, $ 3,962 $ 3,732 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 , 2014 , and 2013 : December 31, (in thousands) 2015 2014 2013 Net Revenue Industrial $ 498,761 $ 436,018 $ 297,857 Agricultural 208,257 214,326 219,354 European 172,559 188,711 164,879 Consolidated $ 879,577 $ 839,055 $ 682,090 Income from Operations Industrial $ 42,194 $ 39,377 $ 25,743 Agricultural 17,295 11,714 17,880 European 7,039 11,573 7,114 Consolidated $ 66,528 $ 62,664 $ 50,737 The following table presents the goodwill and total identifiable assets by reporting segment for the years ended December 31, 2015 and 2014 : (in thousands) December 31, 2015 December 31, 2014 Goodwill Industrial $ 56,293 $ 57,320 Agricultural 2,984 695 European 16,232 17,676 Consolidated $ 75,509 $ 75,691 Total Identifiable Assets Industrial $ 370,642 $ 367,096 Agricultural 110,489 113,286 European 122,372 152,504 Consolidated $ 603,503 $ 632,886 |
International Operations and 43
International Operations and Geographic Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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) 2015 2014 2013 Net sales $ 243,108 $ 260,874 $ 236,839 Income from operations 9,682 15,840 14,822 Income before income taxes 15,840 17,315 16,241 Identifiable assets $ 194,839 $ 219,036 $ 205,317 |
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) 2015 2014 2013 Geographic net sales: United States $ 635,923 $ 571,817 $ 449,119 United Kingdom 59,621 58,976 36,892 France 80,762 93,699 97,959 Canada 44,388 54,087 45,212 Australia 13,801 13,702 11,519 Other 45,082 46,774 41,389 Total net sales $ 879,577 $ 839,055 $ 682,090 Geographic location of long-lived assets: United States $ 174,811 $ 168,404 $ 42,053 United Kingdom 20,338 20,840 19,718 France 18,755 21,728 25,751 Canada 21,466 23,354 12,562 Australia 1,189 1,358 768 Brazil 2,742 — — Total long-lived assets $ 239,301 $ 235,684 $ 100,852 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contractual Obligation, Fiscal Year Maturity Schedule | As of December 31, 2015 , future minimum lease payments under these non-cancelable leases and the present value of the net minimum lease payments for the capitalized leases are: (in thousands) Operating Leases Capitalized Leases 2016 $ 3,046 $ 18 2017 2,301 6 2018 1,535 — 2019 905 — 2020 354 — Thereafter 195 — Total minimum lease payments $ 8,336 $ 24 Less amount representing interest 1 Present value of net minimum lease payments $ 23 Less current portion 17 Long-term portion $ 6 |
Quarterly Financial Informati45
Quarterly Financial Information (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | Summarized quarterly financial data for 2015 and 2014 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) 2015 2014 First Second Third Fourth First Second Third Fourth Sales $ 207,798 $ 215,734 $ 231,614 $ 224,431 $ 172,610 $ 207,751 $ 234,783 $ 223,911 Gross profit 45,537 50,665 57,509 48,737 38,130 47,286 55,440 48,372 Net income 7,359 9,710 14,756 11,384 7,238 9,195 13,367 11,351 Earnings per share Diluted $ 0.64 $ 0.84 $ 1.28 $ 0.99 $ 0.59 $ 0.75 $ 1.10 $ 1.00 Average shares Diluted 11,436 11,498 11,496 11,500 12,270 12,276 12,205 11,403 Dividends per share $ 0.08 0.08 $ 0.08 $ 0.08 $ 0.07 $ 0.07 $ 0.07 $ 0.07 Market price of common stock High $ 63.39 $ 64.45 $ 55.12 $ 57.51 $ 60.65 $ 57.86 $ 55.84 $ 52.13 Low $ 44.74 $ 48.10 $ 44.48 $ 43.98 $ 46.87 $ 49.50 $ 40.75 $ 37.93 |
Significant Accounting Polici46
Significant Accounting Policies (Narrative) (Details) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2015USD ($)Reportable_Segment | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Oct. 01, 2015 | Dec. 31, 2012USD ($) | |
Accounting Policies [Line Items] | |||||
Number of principal reporting segments | Reportable_Segment | 3 | ||||
Goodwill | $ 75,509 | $ 75,691 | $ 32,073 | $ 31,648 | |
Goodwill percentage of total assets | 13.00% | ||||
Hypothetical percentage decline in fair value of each reporting unit | 15.00% | ||||
Net book value of assets | $ 47,450 | 51,484 | |||
Accumulated depreciation relating to rental equipment | $ 107,094 | 100,497 | |||
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 | ||||
Rental Equipment | |||||
Accounting Policies [Line Items] | |||||
Accumulated depreciation relating to rental equipment | $ 8,322 | 3,435 | |||
Trade names and trademarks | |||||
Accounting Policies [Line Items] | |||||
Indefinite: | 5,500 | 5,500 | |||
Trade Names | Gradall | |||||
Accounting Policies [Line Items] | |||||
Indefinite: | 3,600 | ||||
Trade Names | Bush Hog | |||||
Accounting Policies [Line Items] | |||||
Indefinite: | 1,900 | ||||
Selling, General and Administrative expenses | |||||
Accounting Policies [Line Items] | |||||
Advertising expense | 7,670 | 7,368 | 6,646 | ||
Product development and engineering costs | 8,590 | $ 8,427 | $ 7,164 | ||
Foreign Currency Forward | |||||
Accounting Policies [Line Items] | |||||
Outstanding forward exchange contracts related to sales | $ 4,309 |
Significant Accounting Polici47
Significant Accounting Policies (Schedule of Fair Value Assumptions and Methodology) (Details) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Accounting Policies [Abstract] | |||
Risk-free interest rate | 2.00% | 2.24% | 1.38% |
Dividend yield | 0.60% | 0.50% | 0.80% |
Volatility factors | 48.80% | 48.20% | 47.90% |
Weighted-average expected life | 8 years | 8 years | 8 years |
Acquisitions and Investments (N
Acquisitions and Investments (Narrative) (Details) - USD ($) | Mar. 09, 2015 | May. 13, 2014 | Jun. 30, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | May. 12, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Business Acquisition [Line Items] | ||||||||
Goodwill | $ 75,691,000 | $ 75,509,000 | $ 32,073,000 | $ 31,648,000 | ||||
Industrial | ||||||||
Business Acquisition [Line Items] | ||||||||
Goodwill | 57,320,000 | 56,293,000 | ||||||
Herder Implementos e Maquinas Agricolas Ltda [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Total consideration transferred | $ 4,000,000 | |||||||
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 | |||||||
Purchase price allocation adjustment for unrecognized deferred tax liability related to intangible assets | $ 3,300,000 | |||||||
Increase in goodwill, adjustment to purchase price allocation | $ 3,300,000 | |||||||
Goodwill | 44,611,000 | |||||||
Goodwill that is tax deductible | 31,500,000 | |||||||
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 | Industrial | ||||||||
Business Acquisition [Line Items] | ||||||||
Goodwill | 44,600,000 | |||||||
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 ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | May. 13, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Business Acquisition [Line Items] | |||||
Goodwill | $ 75,509 | $ 75,691 | $ 32,073 | $ 31,648 | |
Specialized Industries LP | |||||
Business Acquisition [Line Items] | |||||
Cash | $ 2,025 | ||||
Accounts receivable | 16,290 | ||||
Inventory | 47,500 | ||||
Prepaid expenses | 3,223 | ||||
Rental equipment | 28,446 | ||||
Property, plant & equipment | 13,214 | ||||
Intangible assets | 53,900 | ||||
Other assets | 675 | ||||
Deferred income tax | (6,023) | ||||
Other liabilities assumed | (10,962) | ||||
Net assets assumed | 148,288 | ||||
Goodwill | 44,611 | ||||
Acquisition Price | $ 192,899 |
Acquisitions and Investments 50
Acquisitions and Investments (Schedule of Definite Lived Intangible Assets Acquired) (Details) - USD ($) $ in Thousands | May. 13, 2014 | Dec. 31, 2015 |
Specialized Industries LP | ||
Business Acquisition [Line Items] | ||
Value at Acquisition | $ 53,900 | |
Trade names and trademarks | ||
Business Acquisition [Line Items] | ||
Value at Acquisition | $ 20,452 | |
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 | 25,360 | |
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 | $ 1,638 | |
Patents and drawings | Specialized Industries LP | ||
Business Acquisition [Line Items] | ||
Estimated Useful Lives | 12 years | |
Value at Acquisition | $ 2,000 |
Earnings Per Share (Calculation
Earnings Per Share (Calculation of Basic and Diluted EPS) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Earnings Per Share [Abstract] | |||||||||||
Net income | $ 11,384 | $ 14,756 | $ 9,710 | $ 7,359 | $ 11,351 | $ 13,367 | $ 9,195 | $ 7,238 | $ 43,209 | $ 41,151 | $ 36,094 |
Average common shares: | |||||||||||
Basic (weighted-average outstanding shares) | 11,349,000 | 11,875,000 | 12,050,000 | ||||||||
Dilutive potential common shares from stock options, shares | 133,000 | 164,000 | 162,000 | ||||||||
Diluted (weighted-average outstanding shares) | 11,500,000 | 11,496,000 | 11,498,000 | 11,436,000 | 11,403,000 | 12,205,000 | 12,276,000 | 12,270,000 | 11,482,000 | 12,039,000 | 12,212,000 |
Basic earnings per share (in dollars per share) | $ 3.81 | $ 3.47 | $ 3 | ||||||||
Diluted earnings per share (in dollars per share) | $ 0.99 | $ 1.28 | $ 0.84 | $ 0.64 | $ 1 | $ 1.10 | $ 0.75 | $ 0.59 | $ 3.76 | $ 3.42 | $ 2.96 |
Stock options excluded from diluted earnings per share calculation (shares) | 61,690 | 37,261 | 3,831 |
Valuation and Qualifying Acco52
Valuation and Qualifying Accounts (Schedule of Valuation and Qualifying Accounts) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Allowance for doubtful accounts | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance Beginning of Year | $ 2,853 | $ 2,738 | $ 3,077 |
Net Charged to Costs and Expenses | 965 | 469 | 31 |
Translations, Reclassifications and Acquisitions | (185) | (153) | 62 |
Net Write-Offs or Discounts Taken | (149) | (201) | (432) |
Balance End of Year | 3,484 | 2,853 | 2,738 |
Reserve for sales discounts | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance Beginning of Year | 15,999 | 16,724 | 15,005 |
Net Charged to Costs and Expenses | 78,304 | 79,877 | 76,184 |
Translations, Reclassifications and Acquisitions | (145) | (98) | 0 |
Net Write-Offs or Discounts Taken | (79,064) | (80,504) | (74,465) |
Balance End of Year | 15,094 | 15,999 | 16,724 |
Reserve for inventory obsolescence | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance Beginning of Year | 7,601 | 8,596 | 9,099 |
Net Charged to Costs and Expenses | 5,209 | 2,938 | 2,586 |
Translations, Reclassifications and Acquisitions | (454) | (297) | (157) |
Net Write-Offs or Discounts Taken | (2,681) | (3,636) | (2,932) |
Balance End of Year | 9,675 | 7,601 | 8,596 |
Reserve for warranty | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance Beginning of Year | 5,913 | 4,994 | 5,007 |
Net Charged to Costs and Expenses | 7,732 | 7,467 | 6,410 |
Translations, Reclassifications and Acquisitions | (325) | 843 | 80 |
Net Write-Offs or Discounts Taken | (7,754) | (7,391) | (6,503) |
Balance End of Year | $ 5,566 | $ 5,913 | $ 4,994 |
Valuation and Qualifying Acco53
Valuation and Qualifying Accounts (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Receivables aging period | 60 days | |
Accounts receivable reserve period | 90 days | |
Allowance for doubtful accounts | $ 3,484 | $ 2,853 |
Reserves for sales discounts | 15,094 | 15,999 |
Inventory obsolescence reserves | $ 9,675 | 7,601 |
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 | $ 5,566 | $ 5,913 |
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) (Detail
Inventories (Narrative) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Inventory Disclosure [Abstract] | ||
Percentage of LIFO inventory | 45.00% | 37.00% |
Excess of current costs over stated LIFO value | $ 8,712 | $ 10,230 |
Inventories (Schedule of Invent
Inventories (Schedule of Inventory, Current) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Inventory Disclosure [Abstract] | ||
Finished goods and parts | $ 129,995 | $ 112,197 |
Work in process | 9,561 | 18,635 |
Raw materials | 11,202 | 35,256 |
Inventory, Net | $ 150,758 | $ 166,088 |
Property Plant and Equipment (S
Property Plant and Equipment (Schedule of Property Plant and Equipment) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | $ 178,044 | $ 171,667 |
Less: Accumulated depreciation | (107,094) | (100,497) |
Property, plant and equipment, net | 70,950 | 71,170 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | 9,478 | 9,181 |
Buildings and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | $ 73,828 | 72,514 |
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 | $ 70,791 | 66,799 |
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 | $ 7,128 | 6,254 |
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 | $ 11,298 | 11,283 |
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 | $ 5,521 | $ 5,636 |
Useful Lives | 3 years |
Property Plant and Equipment (N
Property Plant and Equipment (Narrative) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Property, Plant and Equipment [Abstract] | ||
Capital leases | $ 182 | $ 412 |
Accumulated depreciation related to capital leases | $ (92) | $ (308) |
Goodwill (Schedule of Goodwill)
Goodwill (Schedule of Goodwill) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Goodwill [Roll Forward] | |||
Goodwill, balance at the beginning of the period | $ 75,691 | $ 32,073 | $ 31,648 |
Translation adjustment | (3,181) | (2,217) | 425 |
Goodwill acquired | 2,999 | 45,835 | |
Goodwill, balance at the end of the period | $ 75,509 | $ 75,691 | $ 32,073 |
Definite and Indefinite Lived59
Definite and Indefinite Lived Intangible Assets (Schedule of Definite and Indefinite Lived Intangible Assets) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Schedule of Acquired Indefinite-lived and Finite Intangible Assets by Major Class [Line Items] | ||
Definite: | $ 52,486 | $ 53,476 |
Less accumulated amortization | 5,036 | 1,992 |
Total net | 47,450 | 51,484 |
Intangible assets, net | 52,950 | 56,984 |
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: | $ 21,878 | 22,104 |
Less accumulated amortization | $ 1,427 | |
Customer and dealer relationships | ||
Schedule of Acquired Indefinite-lived and Finite Intangible Assets by Major Class [Line Items] | ||
Estimated Useful Lives | 14 years | |
Definite: | $ 28,715 | 29,404 |
Less accumulated amortization | $ 3,354 | |
Patents and drawings | ||
Schedule of Acquired Indefinite-lived and Finite Intangible Assets by Major Class [Line Items] | ||
Estimated Useful Lives | 12 years | |
Definite: | $ 1,893 | $ 1,968 |
Less accumulated amortization | $ 255 |
Definite and Indefinite Lived60
Definite and Indefinite Lived Intangible Assets (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Schedule of Acquired Indefinite-lived and Finite Intangible Assets by Major Class [Line Items] | ||
Accumulated amortization | $ 5,036 | $ 1,992 |
2,016 | 3,176 | |
2,017 | 3,176 | |
2,018 | 3,176 | |
2,019 | 3,176 | |
2,020 | 3,176 | |
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] | ||
Net carrying value of intangibles with definite useful lives | 20,452 | |
Accumulated amortization | 1,427 | |
Customer and dealer relationships | ||
Schedule of Acquired Indefinite-lived and Finite Intangible Assets by Major Class [Line Items] | ||
Net carrying value of intangibles with definite useful lives | 25,360 | |
Accumulated amortization | 3,354 | |
Patents and drawings | ||
Schedule of Acquired Indefinite-lived and Finite Intangible Assets by Major Class [Line Items] | ||
Net carrying value of intangibles with definite useful lives | 1,638 | |
Accumulated amortization | $ 255 |
Accrued Liabilities (Details)
Accrued Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Payables and Accruals [Abstract] | ||
Salaries, wages and bonuses | $ 19,270 | $ 20,635 |
Warranty | 5,566 | 5,913 |
State taxes | 2,180 | 3,997 |
Other | 11,125 | 10,457 |
Accrued liabilities | $ 38,141 | $ 41,002 |
Long-Term Debt (Schedule of Lon
Long-Term Debt (Schedule of Long-Term Debt) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Debt Instrument [Line Items] | ||
Total debt | $ 144,083 | $ 190,575 |
Current maturities of long-term debt and capital lease obligations | 77 | 551 |
Long-term debt and capital lease obligation, net of current maturities | 144,006 | 190,024 |
Bank revolving credit facility | Amended and Restated Revolving Credit Agreement | ||
Debt Instrument [Line Items] | ||
Total debt | 144,000 | 190,000 |
Capital lease obligations | ||
Debt Instrument [Line Items] | ||
Total debt | 23 | 59 |
Other notes payable | ||
Debt Instrument [Line Items] | ||
Total debt | $ 60 | $ 516 |
Long-Term Debt (Narrative) (Det
Long-Term Debt (Narrative) (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 | May. 13, 2014 | May. 12, 2014 |
Debt Instrument [Line Items] | ||||
Amount outstanding under revolving credit facility | $ 144,083,000 | $ 190,575,000 | ||
2,016 | 60,000 | |||
2,017 | 0 | |||
2,018 | 0 | |||
2,019 | 144,000,000 | |||
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 | 144,000,000 | $ 190,000,000 | ||
Available borrowings | 103,697,000 | |||
Bank revolving credit facility | Amended and Restated Revolving Credit Agreement | Standby Letters of Credit | ||||
Debt Instrument [Line Items] | ||||
Amount of capacity | $ 2,303,000 | |||
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 ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ 52,313 | $ 43,345 | $ 35,146 |
Foreign | 14,554 | 17,260 | 16,242 |
Income before income taxes | $ 66,867 | $ 60,605 | $ 51,388 |
Income Taxes (Schedule of Compo
Income Taxes (Schedule of Components of Income Tax Expense (Benefit)) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Current: | |||
Domestic | $ 13,293 | $ 13,495 | $ 10,605 |
Foreign | 4,614 | 3,382 | 3,200 |
State | 2,947 | 2,685 | 2,366 |
Provision for current income tax expense (benefit) | 20,854 | 19,562 | 16,171 |
Deferred: | |||
Domestic | 3,481 | (600) | (1,074) |
Foreign | (718) | 540 | 249 |
State | 41 | (48) | (52) |
Provision for deferred income tax expense (benefit) | 2,804 | (108) | (877) |
Total income taxes | $ 23,658 | $ 19,454 | $ 15,294 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Operating Loss Carryforwards [Line Items] | |||
Federal statutory rate | 35.00% | 35.00% | 35.00% |
Undistributed earnings of foreign subsidiaries | $ 162,526 | ||
Reclassification of current deferred tax liability | 0 | $ (21) | |
Additional unrecognized tax benefit that would affect our annual effective tax rate | 301 | $ 388 | |
Interest and penalties accrued | 36 | ||
Accounting Standards Update 2015-17 | New Accounting Pronouncement, Early Adoption, Effect | |||
Operating Loss Carryforwards [Line Items] | |||
Reclassification of current deferred tax assets | 6,500 | ||
Reclassification of current deferred tax liability | $ 300 | ||
Federal | |||
Operating Loss Carryforwards [Line Items] | |||
Federal statutory rate | 35.00% | ||
Foreign | |||
Operating Loss Carryforwards [Line Items] | |||
Net operating loss carryforwards with unlimited carryfoward period | $ 7,400 | ||
Net operating loss carryforwards expiring in 2035 | 1,700 | ||
State | |||
Operating Loss Carryforwards [Line Items] | |||
Net operating loss carryforwards | $ 100 |
Income Taxes (Income Tax Reconc
Income Taxes (Income Tax Reconciliation) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
Federal statutory rate | 35.00% | 35.00% | 35.00% |
Domestic statutory rate at 35% | $ 23,403,000 | $ 21,212,000 | $ 17,985,000 |
Increase (reduction) from: | |||
Jurisdictional rate differences | (2,192,000) | (2,119,000) | (1,959,000) |
Valuation allowance | 797,000 | 353,000 | (114,000) |
Stock based compensation | 257,000 | 199,000 | 136,000 |
U.S. state taxes | 1,942,000 | 1,649,000 | 1,496,000 |
Domestic production deduction | (518,000) | (1,321,000) | (1,162,000) |
R&D credit | (475,000) | (614,000) | (856,000) |
Other, net | 444,000 | 95,000 | (232,000) |
Total income taxes | $ 23,658,000 | $ 19,454,000 | $ 15,294,000 |
Effective tax rate | 35.00% | 32.00% | 30.00% |
Income Taxes (Schedule of Defer
Income Taxes (Schedule of Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred income tax assets: | ||
Inventory basis difference | $ 2,241 | $ 1,051 |
Accounts receivable reserve | 529 | 394 |
Depreciation | 110 | 0 |
Stock based compensation | 968 | 1,284 |
Pension liability | 2,481 | 3,018 |
Employee benefit accrual | 2,038 | 1,448 |
Product liability and warranty reserves | 1,517 | 1,480 |
Expenses not currently deductible for tax purposes | 60 | 410 |
Foreign net operating loss | 2,726 | 1,379 |
State net operating loss | 49 | 10 |
Other | 194 | 0 |
Total deferred income tax assets | 12,913 | 10,474 |
Less: Valuation allowance | (1,651) | (1,064) |
Net deferred income tax assets | 11,262 | 9,410 |
Deferred income tax liabilities: | ||
Inventory basis differences | (310) | 0 |
Depreciation | (4,624) | (2,786) |
Intangible assets | (7,934) | (2,144) |
Deferred revenue | 0 | 38 |
Expenses not currently deductible for tax purposes | (642) | (356) |
Total deferred income tax liabilities | (13,510) | (5,248) |
Net deferred income tax liabilities and assets | $ (2,248) | |
Net deferred income tax liabilities and assets | $ 4,162 |
Income Taxes Income Taxes (Sche
Income Taxes Income Taxes (Schedule of Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Balance as of beginning of year | $ 388 | $ 146 |
Additions for tax positions related to the current year | 63 | 63 |
Additions for tax positions related to prior years | 0 | 262 |
Reduction due to lapse of statute of limitations | (150) | (83) |
Balance as of end of year | $ 301 | $ 388 |
Common Stock (Details)
Common Stock (Details) - $ / shares | Jan. 29, 2016 | Jan. 04, 2016 | Sep. 25, 2014 | Sep. 24, 2014 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Aug. 06, 2015 |
Class of Stock [Line Items] | ||||||||||||||||
Authorized shares to be repurchased | 1,000,000 | |||||||||||||||
Dividends declared (in dollars per share) | $ 0.08 | $ 0.08 | $ 0.08 | $ 0.08 | $ 0.07 | $ 0.07 | $ 0.07 | $ 0.07 | ||||||||
Dividends paid (in dollars per share) | $ 0.32 | $ 0.28 | $ 0.28 | |||||||||||||
Subsequent Event | ||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||
Dividends declared (in dollars per share) | $ 0.09 | |||||||||||||||
Dividends paid (in dollars per share) | $ 0.09 | |||||||||||||||
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 | $ 40.255 | |||||||||||||||
Share Price (in dollars per share) | $ 41.50 | |||||||||||||||
Retirement of shares (shares) | 849,690 |
Stock Options (Narrative) (Deta
Stock Options (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | May. 07, 2015 | May. 07, 2009 | May. 03, 2005 | May. 03, 2001 | |
Qualified Stock Options | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Granted | 29,500 | 48,250 | 49,000 | ||||
Weighted average grant date fair value of options granted | $ 27.63 | $ 27.23 | $ 20.56 | ||||
Total unrecognized compensation cost related to non-vested share-based compensation arrangements | $ 1,713 | ||||||
Period cost is expected to be recognized (years) | 5 years | ||||||
Exercise of stock options, shares | 75,355 | 27,700 | 81,880 | ||||
Non Qualified Options | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Granted | 0 | 29,000 | 25,000 | ||||
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 | $ 80 | ||||||
Period cost is expected to be recognized (years) | 5 years | ||||||
Exercise of stock options, shares | 4,800 | 11,600 | 0 | ||||
Proceeds from stock options exercised | $ 55 | $ 270 | $ 0 | ||||
Tax deductions from the exercise of stock options | 187 | $ 262 | $ 0 | ||||
Restricted Stock Units (RSUs) | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Total unrecognized compensation cost related to non-vested share-based compensation arrangements | $ 1,242 | ||||||
Period cost is expected to be recognized (years) | 4 years | ||||||
Weighted average remaining contractual life (years) | 3 years 1 month 10 days | 2 years 4 months 21 days | 2 years 1 month 2 days | ||||
Restricted Stock Units (RSUs) | Year One after Grant Date | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Annual vesting percentage of award | 25.00% | ||||||
Award vesting period (years) | 1 year | ||||||
Restricted Stock Units (RSUs) | Year Two after Grant Date | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Annual vesting percentage of award | 25.00% | ||||||
Restricted Stock Units (RSUs) | Year Three after Grant Date | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Annual vesting percentage of award | 25.00% | ||||||
Restricted Stock Units (RSUs) | Year Four after Grant Date | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Annual vesting percentage of award | 25.00% | ||||||
2015 ISO 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 | 400,000 | ||||||
Granted | 29,500 | ||||||
2015 ISO Plan | Qualified Stock Options | Year One after Grant Date | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Annual vesting percentage of award | 20.00% | ||||||
Award vesting period (years) | 1 year | ||||||
2015 ISO Plan | Qualified Stock Options | Year Two after Grant Date | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Annual vesting percentage of award | 20.00% | ||||||
2015 ISO Plan | Qualified Stock Options | Year Three after Grant Date | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Annual vesting percentage of award | 20.00% | ||||||
2015 ISO Plan | Qualified Stock Options | Year Four after Grant Date | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Annual vesting percentage of award | 20.00% | ||||||
2015 ISO Plan | Qualified Stock Options | Year Five after Grant Date | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
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 | ||||||
Granted | 0 | 48,250 | 49,000 | ||||
2005 Incentive Stock Option Plan | Qualified Stock Options | Year One after Grant Date | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Annual vesting percentage of award | 20.00% | ||||||
Award vesting period (years) | 1 year | ||||||
2005 Incentive Stock Option Plan | Qualified Stock Options | Year Two after Grant Date | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Annual vesting percentage of award | 20.00% | ||||||
2005 Incentive Stock Option Plan | Qualified Stock Options | Year Three after Grant Date | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Annual vesting percentage of award | 20.00% | ||||||
2005 Incentive Stock Option Plan | Qualified Stock Options | Year Four after Grant Date | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Annual vesting percentage of award | 20.00% | ||||||
2005 Incentive Stock Option Plan | Qualified Stock Options | Year Five after Grant Date | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Annual vesting percentage of award | 20.00% | ||||||
FAR 1999 NQSO 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 | ||||||
FAR 1999 NQSO Plan | Non Qualified Options | Year One after Grant Date | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Annual vesting percentage of award | 20.00% | ||||||
Award vesting period (years) | 1 year | ||||||
FAR 1999 NQSO Plan | Non Qualified Options | Year Two after Grant Date | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Annual vesting percentage of award | 20.00% | ||||||
FAR 1999 NQSO Plan | Non Qualified Options | Year Three after Grant Date | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Annual vesting percentage of award | 20.00% | ||||||
FAR 1999 NQSO Plan | Non Qualified Options | Year Four after Grant Date | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Annual vesting percentage of award | 20.00% | ||||||
FAR 1999 NQSO Plan | Non Qualified Options | Year Five after Grant Date | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Annual vesting percentage of award | 20.00% | ||||||
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 | ||||||
2009 Equity Incentive Plan | Non Qualified Options | Year One after Grant Date | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Annual vesting percentage of award | 20.00% | ||||||
Award vesting period (years) | 1 year | ||||||
2009 Equity Incentive Plan | Non Qualified Options | Year Two after Grant Date | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Annual vesting percentage of award | 20.00% | ||||||
2009 Equity Incentive Plan | Non Qualified Options | Year Three after Grant Date | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Annual vesting percentage of award | 20.00% | ||||||
2009 Equity Incentive Plan | Non Qualified Options | Year Four after Grant Date | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Annual vesting percentage of award | 20.00% | ||||||
2009 Equity Incentive Plan | Non Qualified Options | Year Five after Grant Date | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Annual vesting percentage of award | 20.00% |
Stock Options (Schedule of Qual
Stock Options (Schedule of Qualified Stock Option Activity) (Details) - Qualified Stock Options - $ / shares | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||
Options outstanding at beginning of year | 301,800 | 292,350 | 330,730 | |
Granted | 29,500 | 48,250 | 49,000 | |
Exercised | (75,355) | (27,700) | (81,880) | |
Canceled | (1,750) | (11,100) | (5,500) | |
Options outstanding at end of year | 254,195 | 301,800 | 292,350 | |
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 | [1] | $ 30.73 | $ 26.68 | $ 21.82 |
Granted, Exercise Price, in dollars per share | [1] | 53.95 | 52.67 | 42.70 |
Exercised, Exercise Price, in dollars per share | [1] | 26.11 | 24.33 | 16.77 |
Cancelled, Exercise Price, in dollars per share | [1] | 53.61 | 35.42 | 24.24 |
Outstanding at end of year, Exercise Price, in dollars per share | [1] | $ 34.64 | $ 30.73 | $ 26.68 |
Options exercisable at end of year | 143,345 | 172,450 | 154,950 | |
Exercisable at end of year, Exercise Price, in dollars per share | [1] | $ 25.69 | $ 22.30 | $ 21.57 |
Options available for grant at end of year | 370,750 | 28,950 | 66,100 | |
[1] | Weighted Averages |
Stock Options (Schedule of Qu73
Stock Options (Schedule of Qualified Stock Options Outstanding and Exercisable) (Details) - Qualified Stock Options - $ / shares | 12 Months Ended | ||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||||
Options Outstanding, Shares, Total | 254,195 | 301,800 | 292,350 | 330,730 | |
Options Exercisable, Shares, Total | 143,345 | 172,450 | 154,950 | ||
$11.45 - $22.39 | |||||
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 | $ 22.39 | ||||
Options Outstanding, Shares | 43,225 | ||||
Options Outstanding, Remaining Contractual Life | [1] | 2 years 11 months 27 days | |||
Options, Outstanding, Exercise Price | [1] | $ 12.72 | |||
Options Exercisable, Shares | 43,225 | ||||
Options Exercisable, Exercise Price | [1] | $ 12.72 | |||
$22.55 - $42.70 | |||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||||
Range of Exercise Price, Lower Range Limit | 22.55 | ||||
Range of Exercise Price, Upper Range Limit | $ 42.70 | ||||
Options Outstanding, Shares | 138,970 | ||||
Options Outstanding, Remaining Contractual Life | [1] | 5 years 4 months 24 days | |||
Options, Outstanding, Exercise Price | [1] | $ 31.88 | |||
Options Exercisable, Shares | 91,570 | ||||
Options Exercisable, Exercise Price | [1] | $ 29.30 | |||
$49.44 - $54.24 | |||||
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 | $ 54.24 | ||||
Options Outstanding, Shares | 72,000 | ||||
Options Outstanding, Remaining Contractual Life | [1] | 8 years 9 months 29 days | |||
Options, Outstanding, Exercise Price | [1] | $ 53.12 | |||
Options Exercisable, Shares | 8,550 | ||||
Options Exercisable, Exercise Price | [1] | $ 52.56 | |||
[1] | Weighted Averages |
Stock Options (Schedule of Non-
Stock Options (Schedule of Non-Qualified Stock Options Activity) (Details) - Non Qualified Options - $ / shares | 12 Months Ended | ||||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||||||
Options outstanding at beginning of year | 132,100 | 114,700 | 89,700 | ||||
Granted | 0 | 29,000 | 25,000 | ||||
Exercised | (4,800) | (11,600) | 0 | ||||
Canceled | 0 | 0 | 0 | ||||
Options outstanding at end of year | 127,300 | 132,100 | 114,700 | ||||
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 | [1] | $ 31.30 | $ 24.87 | $ 19.91 | |||
Granted, Exercise Price, in dollars per share | [1] | 0 | 53.51 | 42.70 | |||
Exercised, Exercise Price, in dollars per share | [1] | 11.45 | 23.29 | 0 | |||
Cancelled, Exercise Price, in dollars per share | [1] | 0 | 0 | 0 | |||
Outstanding at end of year, Exercise Price, in dollars per share | [1] | $ 31.30 | $ 24.87 | $ 19.91 | $ 32.05 | $ 31.30 | $ 24.87 |
Options exercisable at end of year | 83,100 | 71,100 | 57,900 | ||||
Exercisable at end of year, Exercise Price, in dollars per share | [1] | $ 24.54 | $ 19.85 | $ 19.89 | |||
Options available for grant at end of year | 232,522 | 258,526 | 293,526 | ||||
[1] | Weighted Averages |
Stock Options (Schedule of No75
Stock Options (Schedule of Non-Qualified Stock Options Outstanding and Exercisable) (Details) - Non Qualified Options - $ / shares | 12 Months Ended | ||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||||
Options Outstanding, Shares, Total | 127,300 | 132,100 | 114,700 | 89,700 | |
Options Exercisable, Shares, Total | 83,100 | 71,100 | 57,900 | ||
$11.45 - $22.39 | |||||
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 | $ 22.39 | ||||
Options Outstanding, Shares | 30,800 | ||||
Options Outstanding, Remaining Contractual Life | [1] | 3 years 4 months 10 days | |||
Options Outstanding, Exercise Price | [1] | $ 11.45 | |||
Options Exercisable, Shares | 30,800 | ||||
Options Exercisable, Exercise Price | [1] | $ 11.45 | |||
$22.55 - $42.70 | |||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||||
Range of Exercise Price, Lower Range Limit | 22.55 | ||||
Range of Exercise Price, Upper Range Limit | $ 42.70 | ||||
Options Outstanding, Shares | 67,500 | ||||
Options Outstanding, Remaining Contractual Life | [1] | 5 years 3 months 29 days | |||
Options Outstanding, Exercise Price | [1] | $ 32.23 | |||
Options Exercisable, Shares | 46,500 | ||||
Options Exercisable, Exercise Price | [1] | $ 29.59 | |||
$49.44 - $54.24 | |||||
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 | $ 54.24 | ||||
Options Outstanding, Shares | 29,000 | ||||
Options Outstanding, Remaining Contractual Life | [1] | 8 years 4 months 13 days | |||
Options Outstanding, Exercise Price | [1] | $ 53.51 | |||
Options Exercisable, Shares | 5,800 | ||||
Options Exercisable, Exercise Price | [1] | $ 53.51 | |||
[1] | Weighted Averages |
Stock Options (Schedule of Rest
Stock Options (Schedule of Restricted Stock Award Activity) (Details) - Restricted Stock - $ / shares | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
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 | 12,043 | 10,724 | 11,375 | |
Granted, Shares | 26,004 | 6,000 | 4,224 | |
Exercised, Shares | (5,431) | (4,681) | (4,875) | |
Cancelled, Shares | 0 | 0 | 0 | |
Outstanding at end of year, Shares | 32,616 | 12,043 | 10,724 | |
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 | [1] | $ 44.10 | $ 32.49 | $ 24.24 |
Granted, Price | [1] | 54.14 | 53.51 | 42.70 |
Exercised, Price | [1] | 36.85 | 29.56 | 22.07 |
Cancelled, Price | [1] | 0 | 0 | 0 |
Outstanding at end of year, Price | [1] | $ 53.31 | $ 44.10 | $ 32.49 |
[1] | Weighted Averages |
Retirement Benefit Plans (Narra
Retirement Benefit Plans (Narrative) (Details) | 12 Months Ended | |||
Dec. 31, 2015USD ($)Defined_Contribution_PlanEmployee | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Feb. 03, 2006Defined_Benefit_Plan | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Number of non-contributory defined benefit pension plans | Defined_Benefit_Plan | 2 | |||
Estimate of amount of unrecognized actuarial expense | $ 724,000 | |||
Other | 194,000 | $ 0 | ||
Accumulated other comprehensive income | $ (36,079,000) | (16,359,000) | ||
Number of defined contribution plans | Defined_Contribution_Plan | 3 | |||
United States | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Annual contribution amount | $ 1,871,000 | 1,466,000 | $ 1,331,000 | |
Non-US | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Number of defined contribution plans | Defined_Contribution_Plan | 3 | |||
Annual contribution amount | $ 864,000 | 806,000 | $ 697,000 | |
IAM Plan | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Annual contribution amount | $ 414,000 | $ 378,000 | ||
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% | |||
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 | $ 311,000 | |||
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 | Employee | 332 | |||
Current employees | Employee | 115 | |||
Employees’ Retirement Plan | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Former employees | Employee | 241 | |||
Current employees | Employee | 80 |
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 ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Change in fair value of plan assets | ||
Fair value of plan assets at beginning of year | $ 26,337 | |
Fair value of plan assets at end of year | 25,711 | $ 26,337 |
Pension Plans, Defined Benefit | ||
Change in projected benefit obligation | ||
Benefit obligation at beginning of year | 32,051 | 27,812 |
Service cost | 13 | 12 |
Interest cost | 1,273 | 1,274 |
Liability actuarial loss (gain) | (1,699) | 4,352 |
Benefits paid | (1,428) | (1,399) |
Benefit obligation at end of year | 30,210 | 32,051 |
Change in fair value of plan assets | ||
Fair value of plan assets at beginning of year | 26,337 | 25,274 |
Return on plan assets | (422) | 1,262 |
Employer contributions | 1,224 | 1,200 |
Benefits paid | (1,428) | (1,399) |
Fair value of plan assets at end of year | 25,711 | 26,337 |
Underfunded status – December 31, 2015 | (4,499) | (5,714) |
Supplemental Employee Retirement Plans, Defined Benefit | ||
Change in projected benefit obligation | ||
Benefit obligation at beginning of year | 3,732 | 3,021 |
Service cost | 121 | 152 |
Interest cost | 137 | 138 |
Liability actuarial loss (gain) | (24) | 421 |
Benefits paid | (4) | 0 |
Plan amendments | 0 | 0 |
Benefit obligation at end of year | 3,962 | 3,732 |
Change in fair value of plan assets | ||
Benefits paid | (4) | 0 |
Hourly Employees’ Pension Plan | Pension Plans, Defined Benefit | ||
Change in projected benefit obligation | ||
Benefit obligation at beginning of year | 10,456 | 9,477 |
Service cost | 9 | 8 |
Interest cost | 405 | 422 |
Liability actuarial loss (gain) | (574) | 1,189 |
Benefits paid | (647) | (640) |
Benefit obligation at end of year | 9,649 | 10,456 |
Change in fair value of plan assets | ||
Fair value of plan assets at beginning of year | 9,223 | 8,873 |
Return on plan assets | (149) | 442 |
Employer contributions | 592 | 548 |
Benefits paid | (647) | (640) |
Fair value of plan assets at end of year | 9,019 | 9,223 |
Underfunded status – December 31, 2015 | (630) | (1,233) |
Employees’ Retirement Plan | Pension Plans, Defined Benefit | ||
Change in projected benefit obligation | ||
Benefit obligation at beginning of year | 21,595 | 18,335 |
Service cost | 4 | 4 |
Interest cost | 868 | 852 |
Liability actuarial loss (gain) | (1,125) | 3,163 |
Benefits paid | (781) | (759) |
Benefit obligation at end of year | 20,561 | 21,595 |
Change in fair value of plan assets | ||
Fair value of plan assets at beginning of year | 17,114 | 16,401 |
Return on plan assets | (273) | 820 |
Employer contributions | 632 | 652 |
Benefits paid | (781) | (759) |
Fair value of plan assets at end of year | 16,692 | 17,114 |
Underfunded status – December 31, 2015 | $ (3,869) | $ (4,481) |
Retirement Benefit Plans (Sch79
Retirement Benefit Plans (Schedule of Assumptions Used) (Details) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
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 | 4.05% | 3.70% |
Composite rate of compensation increase | 3.00% | 3.00% |
Net periodic pension expense, discount rate | 3.70% | 4.60% |
Hourly Employees’ Pension Plan | Pension Plans, Defined Benefit | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 4.30% | 4.00% |
Net periodic pension expense, discount rate | 4.00% | 4.60% |
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 | 4.40% | 4.10% |
Net periodic pension expense, discount rate | 4.10% | 4.75% |
Net periodic pension expense, Long-term rate of return on plan assets | 7.25% | 7.25% |
Retirement Benefit Plans (Sch80
Retirement Benefit Plans (Schedule of Net Periodic Benefit Cost) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Pension Plans, Defined Benefit | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $ 13 | $ 12 |
Interest cost | 1,273 | 1,274 |
Expected return on plan assets | (1,890) | (1,817) |
Amortization of net loss (gain) | 649 | 132 |
Net periodic benefit cost | 45 | (399) |
Supplemental Employee Retirement Plans, Defined Benefit | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 121 | 152 |
Interest cost | 137 | 138 |
Amortization of prior service cost | 342 | 270 |
Net periodic benefit cost | 600 | 560 |
Hourly Employees’ Pension Plan | Pension Plans, Defined Benefit | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 9 | 8 |
Interest cost | 405 | 422 |
Expected return on plan assets | (661) | (637) |
Amortization of net loss (gain) | 248 | 72 |
Net periodic benefit cost | 1 | (135) |
Employees’ Retirement Plan | Pension Plans, Defined Benefit | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 4 | 4 |
Interest cost | 868 | 852 |
Expected return on plan assets | (1,229) | (1,180) |
Amortization of net loss (gain) | 401 | 60 |
Net periodic benefit cost | $ 44 | $ (264) |
Retirement Benefit Plans (Weigh
Retirement Benefit Plans (Weighted Average Asset Allocations) (Details) - Pension Plans, Defined Benefit | Dec. 31, 2015 | Dec. 31, 2014 |
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 | 55.00% | 53.00% |
Hourly Employees’ Pension Plan | Debt securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Asset allocations as a percentage of plan assets | 37.00% | 38.00% |
Hourly Employees’ Pension Plan | Short-term investments | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Asset allocations as a percentage of plan assets | 3.00% | 5.00% |
Hourly Employees’ Pension Plan | Other | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Asset allocations as a percentage of plan assets | 5.00% | 4.00% |
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 | 37.00% | 38.00% |
Employees’ Retirement Plan | Short-term investments | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Asset allocations as a percentage of plan assets | 3.00% | 3.00% |
Employees’ Retirement Plan | Other | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Asset allocations as a percentage of plan assets | 5.00% | 4.00% |
Retirement Benefit Plans (Sch82
Retirement Benefit Plans (Schedule of Fair Value of Plan Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 25,711 | $ 26,337 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 9,686 | 10,717 |
Significant Other Observable Inputs (Level 2) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 16,025 | 15,620 |
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 | 1,623 | 1,642 |
Mid Cap | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 1,623 | 1,642 |
Large Cap | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 4,411 | 5,162 |
Large Cap | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 4,411 | 5,162 |
International | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 2,915 | 2,985 |
International | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 2,915 | 2,985 |
Liability Driven Solution | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 3,543 | $ 3,702 |
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 | 3,543 | $ 3,702 |
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 | 1,080 | $ 1,098 |
Wells Fargo International Equity Index Fund | Significant Other Observable Inputs (Level 2) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 1,080 | 1,098 |
Wells Fargo Core Bond | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 1,774 | |
Wells Fargo Core Bond | Significant Other Observable Inputs (Level 2) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 1,774 | |
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/Causeway | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 1,112 | 1,118 |
Wells Fargo/Causeway | Significant Other Observable Inputs (Level 2) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 1,112 | 1,118 |
Wells Fargo Large Cap Growth Index Fund | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 1,429 | 1,473 |
Wells Fargo Large Cap Growth Index Fund | Significant Other Observable Inputs (Level 2) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 1,429 | 1,473 |
Wells Fargo Large Cap Value Index Fund | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 1,415 | 1,476 |
Wells Fargo Large Cap Value Index Fund | Significant Other Observable Inputs (Level 2) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 1,415 | 1,476 |
Wells Fargo Multi-Manager Small Cap | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 1,707 | 1,783 |
Wells Fargo Multi-Manager Small Cap | Significant Other Observable Inputs (Level 2) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 1,707 | 1,783 |
Wells Fargo Russell 2000 Index Fund | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 800 | 860 |
Wells Fargo Russell 2000 Index Fund | Significant Other Observable Inputs (Level 2) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 800 | 860 |
Wells Fargo S&P Mid Cap Index Fund | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 942 | 990 |
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 | 942 | 990 |
Wells Fargo/MFS Value CIT F | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 736 | |
Wells Fargo/MFS Value CIT F | Significant Other Observable Inputs (Level 2) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 736 | |
Wells Fargo/T Rowe Price I Large-Cap Growth Managed CIT | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 749 | |
Wells Fargo/T Rowe Price I Large-Cap Growth Managed CIT | Significant Other Observable Inputs (Level 2) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 749 | |
T. Rowe Price Equity Income | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 738 | 1,310 |
T. Rowe Price Equity Income | Significant Other Observable Inputs (Level 2) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 738 | 1,310 |
Cash & Short-term Investments | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 737 | 928 |
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 | $ 737 | $ 928 |
Retirement Benefit Plans (Sch83
Retirement Benefit Plans (Schedule of Expected Benefit Payments) (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Pension Plans, Defined Benefit | |
Defined Benefit Plan Disclosure [Line Items] | |
2,016 | $ 1,561 |
2,017 | 1,676 |
2,018 | 1,780 |
2,019 | 1,820 |
2,020 | 1,862 |
Years 2021 through 2025 | 9,668 |
Supplemental Employee Retirement Plans, Defined Benefit | |
Defined Benefit Plan Disclosure [Line Items] | |
2,016 | 108 |
2,017 | 151 |
2,018 | 261 |
2,019 | 262 |
2,020 | 264 |
Years 2021 through 2025 | 1,522 |
Hourly Employees’ Pension Plan | Pension Plans, Defined Benefit | |
Defined Benefit Plan Disclosure [Line Items] | |
2,016 | 635 |
2,017 | 640 |
2,018 | 648 |
2,019 | 655 |
2,020 | 655 |
Years 2021 through 2025 | 3,156 |
Employees’ Retirement Plan | Pension Plans, Defined Benefit | |
Defined Benefit Plan Disclosure [Line Items] | |
2,016 | 926 |
2,017 | 1,036 |
2,018 | 1,132 |
2,019 | 1,165 |
2,020 | 1,207 |
Years 2021 through 2025 | $ 6,512 |
Segment Reporting (Details)
Segment Reporting (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015USD ($)Reportable_Segment | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2012USD ($) | |
Segment Reporting Information [Line Items] | ||||
Number of principal reporting segments | Reportable_Segment | 3 | |||
Net Revenue | $ 879,577 | $ 839,055 | $ 682,090 | |
Income from Operations | 66,528 | 62,664 | 50,737 | |
Goodwill | 75,509 | 75,691 | 32,073 | $ 31,648 |
Total Identifiable Assets | 603,503 | 632,886 | ||
Industrial | ||||
Segment Reporting Information [Line Items] | ||||
Net Revenue | 498,761 | 436,018 | 297,857 | |
Income from Operations | 42,194 | 39,377 | 25,743 | |
Goodwill | 56,293 | 57,320 | ||
Total Identifiable Assets | 370,642 | 367,096 | ||
Agricultural | ||||
Segment Reporting Information [Line Items] | ||||
Net Revenue | 208,257 | 214,326 | 219,354 | |
Income from Operations | 17,295 | 11,714 | 17,880 | |
Goodwill | 2,984 | 695 | ||
Total Identifiable Assets | 110,489 | 113,286 | ||
European | ||||
Segment Reporting Information [Line Items] | ||||
Net Revenue | 172,559 | 188,711 | 164,879 | |
Income from Operations | 7,039 | 11,573 | $ 7,114 | |
Goodwill | 16,232 | 17,676 | ||
Total Identifiable Assets | $ 122,372 | $ 152,504 |
International Operations and 85
International Operations and Geographic Information (Schedule of Selected Financial Information for International Operations) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Segment Reporting Information [Line Items] | |||
Net sales | $ 879,577 | $ 839,055 | $ 682,090 |
Income from operations | 66,528 | 62,664 | 50,737 |
Identifiable assets | 603,503 | 632,886 | |
Other | |||
Segment Reporting Information [Line Items] | |||
Net sales | 243,108 | 260,874 | 236,839 |
Income from operations | 9,682 | 15,840 | 14,822 |
Income before income taxes | 15,840 | 17,315 | 16,241 |
Identifiable assets | $ 194,839 | $ 219,036 | $ 205,317 |
International Operations and 86
International Operations and Geographic Information (Schedule of Geographic Net Sales and Location of Long-lived assets) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | $ 879,577 | $ 839,055 | $ 682,090 |
Long-lived assets | 239,301 | 235,684 | 100,852 |
United States | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 635,923 | 571,817 | 449,119 |
Long-lived assets | 174,811 | 168,404 | 42,053 |
United Kingdom | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 59,621 | 58,976 | 36,892 |
Long-lived assets | 20,338 | 20,840 | 19,718 |
France | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 80,762 | 93,699 | 97,959 |
Long-lived assets | 18,755 | 21,728 | 25,751 |
Canada | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 44,388 | 54,087 | 45,212 |
Long-lived assets | 21,466 | 23,354 | 12,562 |
Australia | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 13,801 | 13,702 | 11,519 |
Long-lived assets | 1,189 | 1,358 | 768 |
Other | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 45,082 | 46,774 | 41,389 |
Brazil | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-lived assets | $ 2,742 | $ 0 | $ 0 |
Commitments and Contingencies87
Commitments and Contingencies (Schedule of Future Commitments) (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Operating Leases, 2016 | $ 3,046 |
Capital Leases, 2016 | 18 |
Operating Leases, 2017 | 2,301 |
Capital Leases, 2017 | 6 |
Operating Leases, 2018 | 1,535 |
Capital Leases, 2018 | 0 |
Operating Leases, 2019 | 905 |
Capital Leases, 2019 | 0 |
Operating Leases, 2020 | 354 |
Capital Leases, 2020 | 0 |
Operating Leases, Thereafter | 195 |
Capital Leases, Thereafter | 0 |
Operating Leases, Total minimum lease payments | 8,336 |
Capital Leases, Total minimum lease payments | 24 |
Less amount representing interest | 1 |
Present value of net minimum lease payments | 23 |
Less current portion | 17 |
Long-term portion | $ 6 |
Commitments and Contingencies88
Commitments and Contingencies (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Loss Contingencies [Line Items] | |||
Rental expense for operating leases | $ 4,295 | $ 3,666 | $ 2,293 |
Purchase obligations | $ 117,180 | ||
Deere and Company v Bush Hog LLC and Great Plains Manufacturing Inc | |||
Loss Contingencies [Line Items] | |||
Legal fees incurred | $ 2,100 |
Quarterly Financial Informati89
Quarterly Financial Information (Unaudited) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Schedule of Quarterly Financial Information Disclosure [Line Items] | |||||||||||
Sales | $ 224,431 | $ 231,614 | $ 215,734 | $ 207,798 | $ 223,911 | $ 234,783 | $ 207,751 | $ 172,610 | |||
Gross profit | 48,737 | 57,509 | 50,665 | 45,537 | 48,372 | 55,440 | 47,286 | 38,130 | $ 202,448 | $ 189,228 | $ 158,510 |
Net income | $ 11,384 | $ 14,756 | $ 9,710 | $ 7,359 | $ 11,351 | $ 13,367 | $ 9,195 | $ 7,238 | $ 43,209 | $ 41,151 | $ 36,094 |
Per common share - diluted | |||||||||||
Diluted (in dollars per share) | $ 0.99 | $ 1.28 | $ 0.84 | $ 0.64 | $ 1 | $ 1.10 | $ 0.75 | $ 0.59 | $ 3.76 | $ 3.42 | $ 2.96 |
Average shares | |||||||||||
Diluted (in shares) | 11,500 | 11,496 | 11,498 | 11,436 | 11,403 | 12,205 | 12,276 | 12,270 | 11,482 | 12,039 | 12,212 |
Dividends per share (in dollars per share) | $ 0.08 | $ 0.08 | $ 0.08 | $ 0.08 | $ 0.07 | $ 0.07 | $ 0.07 | $ 0.07 | |||
High | |||||||||||
Market price of common stock | |||||||||||
Share Price (in dollars per share) | 57.51 | 55.12 | 64.45 | 63.39 | 52.13 | 55.84 | 57.86 | 60.65 | $ 57.51 | $ 52.13 | |
Low | |||||||||||
Market price of common stock | |||||||||||
Share Price (in dollars per share) | $ 43.98 | $ 44.48 | $ 48.1 | $ 44.74 | $ 37.93 | $ 40.75 | $ 49.50 | $ 46.87 | $ 43.98 | $ 37.93 |
Quarterly Financial Informati90
Quarterly Financial Information (Unaudited) (Narrative) (Details) $ in Thousands | 3 Months Ended |
Dec. 31, 2015USD ($) | |
Effect of Fourth Quarter Events [Line Items] | |
Recapitalization Costs | $ 700 |
Unfavorable litigation action | |
Effect of Fourth Quarter Events [Line Items] | |
Amount returned that was previously reserved to the income statement | $ 1,250 |