Cover
Cover - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 21, 2020 | Jun. 28, 2019 | |
Cover page. | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Transition Report | false | ||
Entity File Number | 0-21220 | ||
Entity Registrant Name | ALAMO GROUP INC. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 74-1621248 | ||
Entity Address, Address Line One | 1627 East Walnut | ||
Entity Address, City or Town | Seguin | ||
Entity Address, State or Province | TX | ||
Entity Address, Postal Zip Code | 78155 | ||
City Area Code | 830 | ||
Local Phone Number | 379-1480 | ||
Title of 12(b) Security | Common Stock, par value$.10 per share | ||
Trading Symbol | ALG | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 972,944,961 | ||
Entity Common Stock, Shares Outstanding | 11,834,714 | ||
Documents Incorporated by Reference | Portions of the registrant’s proxy statement relating to the 2020 Annual Meeting of Stockholders have been incorporated by reference herein in response to Part III. | ||
Entity Central Index Key | 0000897077 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 42,311 | $ 34,043 |
Accounts receivable, net | 237,837 | 228,098 |
Inventories, net | 267,674 | 176,630 |
Prepaid expenses and other current assets | 10,099 | 5,327 |
Income tax receivable | 12,907 | 8,745 |
Total current assets | 570,828 | 452,843 |
Rental equipment, net | 56,467 | 43,978 |
Property, plant and equipment | 302,113 | |
Property, plant and equipment, at cost | 219,135 | |
Less: Accumulated depreciation | (141,388) | |
Less: Accumulated depreciation | (131,905) | |
Total property, plant and equipment, net | 160,725 | |
Total property, plant and equipment, net | 87,230 | |
Goodwill | 198,022 | 83,243 |
Intangible assets, net | 206,272 | 48,857 |
Deferred income taxes | 1,078 | 1,783 |
Other non-current assets | 19,371 | 3,699 |
Total assets | 1,212,763 | 721,633 |
Current liabilities: | ||
Trade accounts payable | 81,986 | 54,083 |
Income taxes payable | 2,362 | 2,865 |
Accrued liabilities | 59,686 | 43,785 |
Current maturities of long-term debt and finance lease obligations | 18,840 | 119 |
Total current liabilities | 162,874 | 100,852 |
Long-term debt and finance lease obligations, net of current maturities | 425,141 | 85,179 |
Long-term tax liability | 7,432 | 6,120 |
Deferred pension liability | 1,844 | 1,944 |
Other long-term liabilities | 19,254 | 8,436 |
Deferred income taxes | 26,461 | 11,731 |
Stockholders’ equity: | ||
Common stock, $.10 par value, 20,000,000 shares authorized; 11,752,509 and 11,662,688 outstanding at December 31, 2019 and December 31, 2018, respectively | 1,175 | 1,166 |
Additional paid-in capital | 113,666 | 108,422 |
Treasury stock, at cost; 82,600 and 42,600 shares at December 31, 2019 and December 31, 2018, respectively | (4,566) | (426) |
Retained earnings | 500,320 | 443,040 |
Accumulated other comprehensive loss | (40,838) | (44,831) |
Total stockholders’ equity | 569,757 | 507,371 |
Total liabilities and stockholders’ equity | $ 1,212,763 | $ 721,633 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.10 | $ 0.10 |
Common stock, shares authorized (in shares) | 20,000,000 | 20,000,000 |
Common stock, shares outstanding (in shares) | 11,752,509 | 11,662,688 |
Treasury stock (in shares) | 82,600 | 42,600 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Net sales: | |||
Net sales | $ 1,119,138 | $ 1,008,822 | $ 912,380 |
Cost of sales | 845,911 | 752,707 | 677,687 |
Gross profit | 273,227 | 256,115 | 234,693 |
Selling, general and administrative expenses | 172,921 | 151,522 | 142,638 |
Amortization expense | 5,658 | 3,505 | 3,317 |
Income from operations | 94,648 | 101,088 | 88,738 |
Interest expense | (10,747) | (5,493) | (4,839) |
Interest income | 1,229 | 410 | 336 |
Other income | (795) | (1,474) | (1,868) |
Income before income taxes | 84,335 | 94,531 | 82,367 |
Provision for income taxes | 21,429 | 21,045 | 38,052 |
Net income | $ 62,906 | $ 73,486 | $ 44,315 |
Net income per common share: | |||
Basic (in dollars per share) | $ 5.36 | $ 6.30 | $ 3.84 |
Diluted (in dollars per share) | $ 5.33 | $ 6.25 | $ 3.79 |
Average common shares: | |||
Basic (in shares) | 11,729 | 11,660 | 11,549 |
Diluted (in shares) | 11,800 | 11,761 | 11,682 |
Industrial | |||
Net sales: | |||
Net sales | $ 768,454 | $ 638,198 | $ 563,599 |
Income from operations | 65,262 | 65,077 | 55,752 |
Agricultural | |||
Net sales: | |||
Net sales | 350,684 | 370,624 | 348,781 |
Income from operations | $ 29,386 | $ 36,011 | $ 32,986 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 62,906 | $ 73,486 | $ 44,315 |
Other comprehensive income (loss): | |||
Foreign currency translation adjustment | 3,363 | (13,347) | 16,966 |
Unrealized gains on derivative instruments | 610 | 0 | 0 |
Net (loss) gain on pension and other post-retirement benefits | (683) | (1,667) | 987 |
Other comprehensive income (loss) before income tax benefit (expense) | 3,290 | (15,014) | 17,953 |
Income tax benefit (expense) related to items of other comprehensive income (loss) | 703 | 349 | (363) |
Other comprehensive income (loss) | 3,993 | (14,665) | 17,590 |
Comprehensive income | $ 66,899 | $ 58,821 | $ 61,905 |
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 |
Beginning balance (in shares) at Dec. 31, 2016 | 11,420 | |||||
Beginning balance at Dec. 31, 2016 | $ 387,717 | $ 1,146 | $ 99,765 | $ (426) | $ 334,988 | $ (47,756) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Other comprehensive income | 61,905 | 44,315 | 17,590 | |||
Stock-based compensation expense | 1,869 | 1,869 | ||||
Stock-based compensation transactions (in shares) | 114 | |||||
Stock-based compensation transactions | 2,231 | $ 12 | 2,219 | |||
Other | 0 | 11 | (11) | |||
Dividends paid | (4,614) | (4,614) | ||||
Ending balance (in shares) at Dec. 31, 2017 | 11,534 | |||||
Ending balance at Dec. 31, 2017 | 449,108 | $ 1,158 | 103,864 | (426) | 374,678 | (30,166) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Other comprehensive income | 58,821 | 73,486 | (14,665) | |||
Stock-based compensation expense | 2,450 | 2,450 | ||||
Stock-based compensation transactions (in shares) | 86 | |||||
Stock-based compensation transactions | 2,116 | $ 8 | 2,108 | |||
Dividends paid | (5,124) | (5,124) | ||||
Ending balance (in shares) at Dec. 31, 2018 | 11,620 | |||||
Ending balance at Dec. 31, 2018 | 507,371 | $ 1,166 | 108,422 | (426) | 443,040 | (44,831) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Other comprehensive income | 66,899 | 62,906 | 3,993 | |||
Stock-based compensation expense | 3,269 | 3,269 | ||||
Stock-based compensation transactions (in shares) | 90 | |||||
Stock-based compensation transactions | 1,984 | $ 9 | 1,975 | |||
Repurchased shares (in shares) | (40) | |||||
Repurchased shares | (4,140) | (4,140) | ||||
Dividends paid | (5,626) | (5,626) | ||||
Ending balance (in shares) at Dec. 31, 2019 | 11,670 | |||||
Ending balance at Dec. 31, 2019 | $ 569,757 | $ 1,175 | $ 113,666 | $ (4,566) | $ 500,320 | $ (40,838) |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Stockholders' Equity [Abstract] | |||
Dividends paid (in dollars per share) | $ 0.48 | $ 0.44 | $ 0.40 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Operating Activities | |||
Net income | $ 62,906 | $ 73,486 | $ 44,315 |
Adjustments to reconcile net income to cash provided by operating activities: | |||
Provision for doubtful accounts | 575 | 71 | 187 |
Depreciation - PP&E | 14,934 | 12,884 | 11,616 |
Depreciation - Rental | 9,373 | 6,725 | 5,531 |
Amortization of intangibles | 5,658 | 3,505 | 3,317 |
Amortization of debt issuance | 295 | 221 | 203 |
Stock-based compensation expense | 3,269 | 2,450 | 1,869 |
Provision for deferred income tax expense | 3,316 | 2,052 | 1,328 |
Gain on sale of property, plant and equipment | (912) | (361) | (341) |
Changes in operating assets and liabilities, net of acquisitions: | |||
Accounts receivable | 11,447 | (27,029) | (23,134) |
Inventories | 657 | (25,991) | 142 |
Rental equipment | (20,729) | (22,424) | (3,054) |
Prepaid expenses and other | (4,633) | (583) | 2,845 |
Trade accounts payable and accrued liabilities | 6,397 | 4,130 | 11,688 |
Income taxes payable | (4,861) | (10,332) | 2,357 |
Long term tax payable | (1,082) | (6,196) | 12,478 |
Other assets and liabilities, net | 2,203 | 302 | (543) |
Net cash provided by operating activities | 88,813 | 12,910 | 70,804 |
Investing Activities | |||
Acquisitions, net of cash acquired | (400,784) | 0 | (38,553) |
Purchase of property, plant and equipment | (31,337) | (26,587) | (13,490) |
Proceeds from sale of property, plant and equipment | 2,277 | 1,341 | 767 |
Purchase of patents | (96) | (112) | 0 |
Net cash used in investing activities | (429,940) | (25,358) | (51,276) |
Financing Activities | |||
Borrowings on bank revolving credit facility | 217,000 | 159,000 | 143,000 |
Repayment on bank revolving credit facility | (157,000) | (134,000) | (153,000) |
Principal payments on long-term debt and capital leases | (122) | 216 | (17) |
Proceeds from issuance of long-term debt | 300,002 | 0 | 0 |
Debt issuance cost | (2,875) | 0 | 0 |
Dividends paid | (5,626) | (5,124) | (4,614) |
Proceeds from exercise of stock options | 2,573 | 2,552 | 2,397 |
Treasury stock repurchased | (4,140) | 0 | 0 |
Common stock repurchased | (589) | (436) | (166) |
Net cash provided (used in) in financing activities | 349,223 | 22,208 | (12,400) |
Effect of exchange rate changes on cash | 172 | (1,090) | 1,452 |
Net change in cash and cash equivalents | 8,268 | 8,670 | 8,580 |
Cash and cash equivalents at beginning of the year | 34,043 | 25,373 | 16,793 |
Cash and cash equivalents at end of the year | 42,311 | 34,043 | 25,373 |
Cash paid during the year for: | |||
Interest | 9,455 | 5,199 | 5,217 |
Income taxes | $ 23,099 | $ 30,295 | $ 23,175 |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
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, forestry and tree maintenance equipment, snow removal equipment, leaf collection equipment, pothole patchers, zero turn radius mowers, agricultural implements and related aftermarket parts and services. The Company manages its business through two principal reporting segments: Industrial and Agricultural which are discussed in Note 18 . 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. Reclassifications At the beginning of the fourth quarter of 2019, the Company began reporting operating results on the basis of two segments, the Industrial Division and the Agricultural Division. Prior to the fourth quarter of 2019, the Company had been reporting its operating results on the basis of three segments which included the Company's European Division. The Company's European Division was a mixture of industrial and agricultural products similar to those within the other two segments. The prior period segment information has been retrospectively adjusted to reflect the current segment presentation in Note 1 8 to the Consolidated Financial Statements. 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). Cash Equivalents The Company considers all highly liquid investments with original maturities of three months or less from the date of purchase to be cash equivalents. As of December 31, 2019 and December 31, 2018, 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. Impairment of 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 a 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 represents the excess of the purchase price over the estimated fair value of the identifiable net assets acquired. Goodwill is not amortized but is instead tested for impairment at least annually, or whenever events or circumstances change between the annual impairment tests that 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. The Company performs its annual test for goodwill impairment related to its reporting units on October 1 of each fiscal year. Impairment testing for goodwill is done at the reporting unit level. A reporting unit is an operating segment or one level below an operating segment (also known as a component). A component of an operating segment is a reporting unit if the component constitutes a business for which discrete financial information is available, and segment management regularly reviews the operating results of that component. We perform a qualitative assessment for all of our reporting units to determine whether it is more likely than not that an impairment exists. Factors considered include macroeconomic, industry and competitive conditions, legal and regulatory environment, historical financial performance and significant changes in the reporting unit. If the qualitative assessment indicates that it is more likely than not that an impairment exists, then a quantitative assessment is performed. Alternatively, we may also bypass the qualitative assessment and go ahead and perform step 1 to determine if the carrying amount exceeds the reporting unit’s fair value. If the fair value of the reporting unit is lower than its carrying amount, goodwill is written down for the amount by which the carrying amount exceeds the fair value. However, the loss recognized cannot exceed the carrying amount of goodwill. We typically use discounted cash flow models to determine the fair value of a reporting unit. The assumptions used in these models are consistent with those we believe a hypothetical marketplace participant would use. See Note 8 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 3 years to 25 years. Impairment of definite-lived assets is discussed as part of the Impairment of Long-Lived Assets paragraph above. The indefinite-lived assets not subject to amortization consist of trade names. 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. See Note 9 to the Consolidated Financial Statements for more information regarding intangible assets. Leases We determine if an arrangement is a lease at inception. Operating leases are included in other non-current assets, accrued liabilities, and other long-term liabilities on our consolidated balance sheets. Finance leases are included in property, plant and equipment, accrued liabilities, and other long-term liabilities on our consolidated balance sheets. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The operating lease ROU asset also includes any lease payments made and excludes lease incentives. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. We have elected to not account for the lease and non-lease components separately for most of our asset classes with the exception of real-estate. We have also elected to exclude all lease agreements with an initial term of 12 months or less from the lease recognition requirements as allowed by ASC. See Note 10 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 (loss) 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. Revenue Recognition The majority of the Company's revenue is recognized from product sales under contracts with customers. The Company presents two reportable operating segments within its financial statements: Industrial and Agricultural. Contract terms and performance obligations within each contractual agreement are generally consistent for both divisions, with small differences that do not have a significant impact on the revenue recognition considerations under Topic 606. Revenues are recognized when we satisfy our performance obligation to transfer product to our customers, which typically occurs at a point in time upon shipment or delivery of the product, and for an amount that reflects the transaction price that is allocated to the performance obligation. Our contracts with customers state the final terms of sale, including the description, quantity and price for goods sold. In the normal course of business, we generally do not accept product returns. The transaction price is the consideration that we expect to be entitled to in exchange for our products. Some of our contracts contain variable consideration in the form of sales incentives to our customers, such as discounts and rebates. For contracts that include variable consideration, we estimate the factors that determine the variable consideration in order to establish the transaction price. We have elected that any taxes collected from customers and remitted to government authorities (i.e., sales tax, use tax, etc.) are excluded from the measurement of the transaction price and therefore are excluded from net sales in the consolidated statements of operations. There are instances where we provide shipping services in relation to the goods sold to our customers. Shipping and handling costs that occur before the customer obtains control of the goods are deemed to be fulfillment activities and are included in cost of goods sold. We have elected to account for shipping and handling activities that occur after the customer has obtained control of a good as fulfillment activities (i.e., an expense) rather than as a promised service. 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 $14,587,000 and $11,145,000 on December 31, 2019 and December 31, 2018, respectively. 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 2019, 2018, and 2017 was approximately $12,177,000, $11,773,000 and $9,566,000, 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 $11,984,000, $10,429,000, and $9,849,000 for the years ended December 31, 2019, 2018, and 2017, respectively. Commitments and Contingencies 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. 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 carry backs and tax planning strategies in making this assessment other than those which we have reserved. We have elected to treat the global intangible low-taxed income (GILTI) tax as a period expense. We previously considered substantially all of the earnings in our foreign subsidiaries to be permanently reinvested and, accordingly, recorded no deferred income taxes on such earnings. As a result of the fundamental changes to the taxation of multinational corporations as a result of TCJA, we no longer intend to permanently reinvest all of the historical undistributed earnings of our foreign subsidiaries. We will distribute earnings from our European subsidiaries, while maintaining our permanent reinvestment for our other foreign subsidiaries. GAAP requires recognition of a deferred tax liability in the reporting period in which its intent to no longer permanently reinvest its historical undistributed foreign earnings is made. There will generally be no U.S. federal taxes imposed on such future distributions of European foreign earnings. 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 that 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 2019, 2018, and 2017: Fair Value Calculation Assumptions for Stock Compensation December 31, 2019 2018 2017 Risk-free interest rate 2.43 % 2.94 % 2.23 % Dividend yield 0.5 % 0.5 % 0.5 % Volatility factors 31.2 % 34.5 % 37.6 % 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 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. |
Accounting Pronouncements
Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Changes and Error Corrections [Abstract] | |
ACCOUNTING PRONOUNCEMENTS | ACCOUNTING PRONOUNCEMENTS Accounting Pronouncements Adopted on January 1, 2019 In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842)". This update requires that a lessee recognize in the statement of financial position a liability to make lease payments and a right-of-use asset representing its right to use the underlying asset for the lease term. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and lease liabilities. Similar to current guidance, the update continues to differentiate between finance leases and operating leases, however this distinction now primarily relates to differences in the manner of expense recognition over time and in the classification of lease payments in the statement of cash flows. The updated guidance leaves the accounting for leases by lessors largely unchanged from existing GAAP. The guidance became effective for us on January 1, 2019. As a lessee, this standard primarily impacted our accounting for long-term real estate and equipment leases, for which we recognized right-of-use assets of $7,747,000 and a corresponding lease liability of $7,868,000 on our consolidated balance sheet. We adopted these provisions on January 1, 2019 using the optional transition method that permits us to apply the new disclosure requirements in 2019 and continue to present comparative period information as required under FASB ASC Topic 840, "Leases". We did not have a cumulative-effect adjustment to the opening balance of retained earnings at the date of adoption. We elected the package of practical expedients permitted under the transition guidance within the new standard, which, among other things, allowed us to not account for lease and non-lease components separately for most of our asset classes and to exclude leases with an initial term of 12 months or less from the right-of-use assets and liabilities. Adoption of the standards had no impact on results of operations or liquidity. In February 2018, the FASB issued ASU 2018-02, “Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income", to allow reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act ("TCJA"). Upon adoption of the ASU, entities will be required to disclose a description of the accounting policy for releasing income tax effects from accumulated other comprehensive income. The standard is required to be adopted for periods beginning after December 15, 2018, with early adoption available for any set of financial statements that have yet to be issued or made available for issuance including retrospectively for any period in which the effect of the change is the U.S. corporate income tax rate in the TCJA is recognized. The adoption of this ASU did not have a material impact on the Company's consolidated financial statements. Accounting Pronouncements Not Yet Adopted In August 2018, the FASB issued Accounting Statement Update (ASU) No. 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement”, which modifies the disclosures requirements on fair value measurements. Among other things, the amendments add disclosures for changes in unrealized gains and losses on Level 3 fair value measurements and requires additional disclosures on unobservable inputs associated with Level 3 assets. The guidance will become effective for us on January 1, 2020. The Company does not expect the adoption of this ASU to have a material impact on its consolidated financial statements. In August 2018, the FASB issued Accounting Statement Update (ASU) No. 2018-14, “Compensation, Defined Benefit Plans", which modifies the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. The update removes certain disclosures that are no longer considered cost beneficial and adds disclosure requirements identified as relevant. The guidance will become effective for us on January 1, 2021 with early adoption permitted for any financial statements that have not been issued. The impacts that adoption of the ASU is expected to have on our financial disclosures is being evaluated. In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments - Credit Losses,” to improve information on credit losses for financial instruments. The ASU replaces the current incurred loss impairment methodology with a methodology that reflects expected credit losses. The ASU is effective for the Company for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted beginning in fiscal years beginning after December 15, 2018. The Company does not expect the adoption of this ASU to have a material impact on its consolidated financial statements. In December 2019, the FASB issued ASU No. 2019-12, “Income Taxes” to simplify the accounting for income taxes. The amendments in this Update simplify the accounting for income taxes by removing certain exceptions to |
Business Combinations
Business Combinations | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
BUSINESS COMBINATIONS | BUSINESS COMBINATIONS Dutch Power Company B.V. On March 4, 2019, the Company acquired 100% of the issued and outstanding equity interests of Dutch Power Company B.V. (" Dutch Power "). Dutch Power designs, manufactures and sells a variety of landscape and vegetation management machines primarily in Europe. The primary reason for the Dutch Power acquisition was to enhance the Company's platform for growth by increasing both the Company's product portfolio and capabilities in the European market. The acquisition price was approximately $53,000,000. The total purchase price has been allocated on a preliminary basis to assets acquired and liabilities assumed, including estimated deferred taxes. Certain estimated values are not yet finalized and are subject to change. The Company will finalize the amounts once the necessary information is obtained and the analysis is complete. This allocation resulted in goodwill of $12,097,000, all of which has been assigned to the Company's Industrial reporting segment, with none of the goodwill being tax deductible. In the period between the date of acquisition and December 31, 2019, Dutch Power generated approximately $36,400,000 of net sales and $100,000 of net income. The Company has included the operating results of Dutch Power in its consolidated financial statements since the date of acquisition. The following table reflects the estimated fair value of the assets acquired and liabilities assumed as of the acquisition date (in thousands): Cash $ 87 Accounts receivable 6,278 Inventory 17,731 Prepaid and other assets 1,451 Property, plant and equipment 13,439 Intangible assets 14,095 Deferred tax liability (4,265) Other liabilities assumed (8,302) Net assets assumed $ 40,514 Goodwill 12,097 Acquisition Price $ 52,611 Morbark, LLC. On October 24, 2019, the Company completed the acquisition of 100% of the outstanding capital shares of Morbark, LLC. (" Morbark ") a former portfolio company of Stellex Capital Management. Morbark manufacturers equipment and aftermarket parts for forestry, tree maintenance, biomass, land management and recycling markets. These products are marketed under the Morbark, Rayco, Denis Cimaf and Boxer Equipment brand names. The total consideration for the purchase was approximately $354,000,000 on a debt free basis and subject to certain post-closing adjustments. In connection with this acquisition, Alamo Group expanded its credit facility from $250,000,000 to $650,000,000 to accommodate this event and the ongoing needs of the combined entities. The new credit facility has a five The primary reason for the acquisition is to expand and complement our range of vegetation maintenance equipment in an adjacent market along with accelerating Morbark's international growth using the Company's existing presence in Europe, Brazil and Australia. This allocation resulted in goodwill of $102,662,000, all of which has been assigned to the Company's Industrial reporting segment. $73,963,000 of goodwill is tax deductible, the remaining balance is not. The acquisition was accounted for in accordance with ASC Topic 805 Business Combinations ("ASC Topic 805"). The total purchase price has been allocated on a preliminary basis to assets acquired and liabilities assumed, including deferred taxes, based on their estimated fair values as of October 24, 2019. Certain estimated values are not yet finalized and are subject to change. The Company will finalize the amounts once the necessary information is obtained and the analysis is complete. In the period between the date of acquisition and December 31, 2019, Morbark generated approximately $35,100,000 of net sales and $1,500,000 of net loss. The Company has included the operating results of Morbark in its consolidated financial statements since the date of acquisition. The following table reflects the estimated fair value of the assets acquired and liabilities assumed as of the acquisition date (in thousands): Accounts receivable $ 13,966 Inventory 72,972 Prepaid and other assets 5,180 Rental Equipment 1,133 Property, plant and equipment 44,552 Intangible assets 149,015 Deferred tax liability (7,628) Other liabilities assumed (32,275) Net assets assumed $ 246,915 Goodwill 102,662 Total Acquisition Price net cash 349,577 Plus: Cash 4,735 Total Consideration 354,312 The following table presents the unaudited pro forma combined results of operations of the Company and the acquired business units of Morbark as if the acquisition had occurred on January 1, 2018 for the years ended December 31, 2018 and December 31, 2019. This includes certain pro forma adjustments including: (i) recognition of the costs related to the step-up in fair value of the Morbark inventory, (ii) amortization of acquired intangible assets, (iii) the impact of certain fair value adjustments such as depreciation on the acquired property, plant and equipment, and (iv) interest expense for historical long-term debt of Morbark that was repaid and interest expense on additional borrowings by the Company to fund the acquisition. The unaudited pro forma statement of income of the Company is as follows: (Unaudited) (In thousands, except per share amounts) 2019 2018 Net sales $ 1,329,901 $ 1,214,285 Net income $ 69,417 $ 56,697 Diluted earnings per share $ 5.88 $ 4.82 |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2019 | |
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) 2019 2018 2017 Net income $ 62,906 $ 73,486 $ 44,315 Average common shares: Basic (weighted-average outstanding shares) 11,729 11,660 11,549 Dilutive potential common shares from stock options 71 101 133 Diluted (weighted-average outstanding shares) 11,800 11,761 11,682 Basic earnings per share $ 5.36 $ 6.30 $ 3.84 Diluted earnings per share $ 5.33 $ 6.25 $ 3.79 Stock options totaling 4,244 shares in 2019, 4,850 shares in 2018, and 1,565 shares in 2017 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, 2019 | |
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 2019 Reserve for sales discounts $ 18,123 $ 91,962 $ 39 $ (93,241) $ 16,883 Reserve for inventory obsolescence 7,194 5,711 6,467 (11,139) 8,233 Reserve for warranty 4,992 8,273 4,343 (7,359) 10,249 2018 Reserve for sales discounts $ 15,652 $ 91,082 $ (48) $ (88,563) $ 18,123 Reserve for inventory obsolescence 6,932 3,773 (116) (3,395) 7,194 Reserve for warranty 5,335 5,815 (144) (6,014) 4,992 2017 Reserve for sales discounts $ 13,488 $ 82,724 $ 166 $ (80,726) $ 15,652 Reserve for inventory obsolescence 7,262 3,007 886 (4,223) 6,932 Reserve for warranty 5,262 7,224 567 (7,718) 5,335 Sales Discounts On December 31, 2019, the Company had $16,883,000 in reserves for sales discounts compared to $18,123,000 on December 31, 2018 on product shipped to our customers under various promotional programs. The most common programs provide a discount when the customer pays within a specified period of time. The Company reviews the reserve quarterly based on analysis made on each program outstanding at the time. The cost of these discounts is estimated based on historical experience and known changes in promotional programs and is reported as a reduction to sales when the product sale is recognized. The reserve is adjusted if discounts paid differ from those estimated. Historically, those adjustments have not been material. Inventories – Obsolete and Slow Moving The Company had a reserve of $8,233,000 on December 31, 2019 and $7,194,000 on December 31, 2018 to cover obsolete and slow moving inventory. The increase in the reserve was primarily attributable to the Company's Industrial Division. The obsolete and slow moving inventory reserve is calculated as follows: 1) no inventory usage over a three three 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 90 day to six The current liability warranty reserve balance was $10,249,000 on December 31, 2019 and $4,992,000 on December 31, 2018 and is included in Note 11 |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | INVENTORIES Inventories valued at LIFO represented 42% and 60% of total inventory for the years ended December 31, 2019 and 2018, respectively. The excess of current costs (market value) over LIFO-valued inventories was $10,910,000 and $10,646,000 on December 31, 2019 and December 31, 2018, respectively. Inventories consisted of the following on a cost basis, net of reserves for obsolescence and LIFO: December 31, (in thousands) 2019 2018 Finished goods and parts $ 227,823 $ 149,298 Work in process 21,918 12,732 Raw materials 17,933 14,600 Inventory, net $ 267,674 $ 176,630 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2019 | |
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) 2019 2018 Useful Lives Land $ 13,876 $ 11,970 Buildings and improvements 135,474 90,065 5-20 yrs. Machinery and equipment 121,870 88,806 3-10 yrs. Office furniture and equipment 10,749 10,290 3-7 yrs. Computer software 12,665 11,410 3-7 yrs. Transportation equipment 7,479 6,594 3 yrs. Property, plant and equipment, at cost 302,113 219,135 Accumulated depreciation (141,388) (131,905) Property, plant and equipment, net $ 160,725 $ 87,230 |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL | GOODWILL The changes in the carrying amount of goodwill for the year ended December 31, 2017, 2018, and 2019 are as follows: Industrial Agricultural Consolidated (in thousands) Balance at December 31, 2016 $ 63,152 $ 11,673 $ 74,825 Translation adjustment 1,506 689 2,195 Goodwill acquired 4,846 2,895 7,741 Balance at December 31, 2017 $ 69,504 $ 15,257 $ 84,761 Translation adjustment (916) (1,460) (2,376) Goodwill adjustment 84 774 858 Balance at December 31, 2018 $ 68,672 $ 14,571 $ 83,243 Translation adjustment (124) 144 20 Goodwill acquired 114,759 — 114,759 Balance at December 31, 2019 $ 183,307 $ 14,715 $ 198,022 |
Definite- and Indefinite-Lived
Definite- and Indefinite-Lived Intangible Assets | 12 Months Ended |
Dec. 31, 2019 | |
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, 2018 Definite: Trade names and trademarks 15-25 years $ 67,222 $ 23,938 Customer and dealer relationships 8-15 years 121,508 32,260 Patents and developed technologies 3-12 years 28,485 2,061 Favorable leasehold interests 7 years 4,200 — Total at cost 221,415 58,259 Less accumulated amortization (20,643) (14,902) Total net 200,772 43,357 Indefinite: Trade names and trademarks 5,500 5,500 Total Intangible Assets $ 206,272 $ 48,857 The Company's net carrying value at December 31, 2019 of intangible assets with definite useful lives consists of trade names and trademarks at $61,588,000, customer and dealer relationships at $108,023,000, patents and drawings at $26,961,000, and favorable leasehold interests at $4,200,000. As of December 31, 2019, the related accumulated amortization balance for the definite-lived assets were $5,634,000 for trade names and trademarks, $13,485,000 for customer and dealer relationships, $1,524,000 for patents and drawings, and zero for favorable leasehold interests. The Company estimates amortization expense to be $14,500,000 for each of the next five years. Indefinite-lived trade names and trademarks consisted of the Gradall trade name with a carrying value of $3,600,000 and the Bush Hog |
Leases
Leases | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
LEASES | LEASES Leases The Company leases office space and equipment under various operating and capital leases, which generally are expected to be renewed or replaced by other leases. As of December 31, 2019, the components of lease cost were as follows: Components of Lease Cost Twelve Months Ended December 31, (in thousands) 2019 Finance lease cost: Amortization of right-of-use assets $ 125 Interest on lease liabilities 10 Operating lease cost 4,457 Short-term lease cost 594 Variable lease cost 464 Total lease cost $ 5,650 As of December 31, 2019, future minimum lease payments under these non-cancelable leases are: Future Minimum Lease Payments December 31, 2019 (in thousands) Operating Leases Finance Leases 2020 $ 4,305 $ 97 2021 2,718 83 2022 2,051 45 2023 1,459 22 2024 941 19 Thereafter 2,587 14 Total minimum lease payments $ 14,061 $ 280 Less imputed interest (1,100) (16) Total lease liabilities $ 12,961 $ 264 As of December 31, 2018, prior to the adoption of ASU 2016-02, the approximate future minimum rental payments required under operating leases that have initial or remaining non-cancelable lease terms in excess of one year were: December 31, 2018 (in thousands) Operating Leases Capital Leases 2019 $ 3,310 $ 125 2020 2,453 97 2021 1,308 62 2022 743 24 2023 419 1 Thereafter 79 — Total minimum lease payments $ 8,312 $ 309 Less imputed interest — (11) Total lease liabilities $ 8,312 $ 298 Rental expense for operating leases was $5,515,000 for 2019, $5,087,000 for 2018, and $4,788,000 for 2017. Future Lease Commencements As of December 31, 2019, we have additional operating leases, that have not yet commenced in the amount of $116,000. These operating leases will commence in fiscal year 2020. Supplemental balance sheet information related to leases was as follows: Operating Leases (in thousands) December 31, 2019 Other non-current assets $ 12,858 Accrued liabilities 3,972 Other long-term liabilities 8,989 Total operating lease liabilities $ 12,961 Finance Leases (in thousands) December 31, 2019 Property, plant and equipment, gross $ 524 Accumulated Depreciation (265) Property, plant and equipment, net $ 259 Current maturities of long-term debt and finance lease obligations $ 90 Long-term debt and finance lease obligations, net of current maturities 174 Total finance lease liabilities $ 264 Weighted Average Remaining Lease Term Operating leases 5.10 years Finance leases 3.47 years Weighted Average Discount Rate Operating leases 3.29 % Finance leases 3.39 % Supplemental Cash Flow information related to leases was as follows: Twelve Months Ended December 31, (in thousands) 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from finance leases $ 10 Operating cash flows from operating leases 4,507 Financing cash flows from finance leases 122 |
LEASES | LEASES Leases The Company leases office space and equipment under various operating and capital leases, which generally are expected to be renewed or replaced by other leases. As of December 31, 2019, the components of lease cost were as follows: Components of Lease Cost Twelve Months Ended December 31, (in thousands) 2019 Finance lease cost: Amortization of right-of-use assets $ 125 Interest on lease liabilities 10 Operating lease cost 4,457 Short-term lease cost 594 Variable lease cost 464 Total lease cost $ 5,650 As of December 31, 2019, future minimum lease payments under these non-cancelable leases are: Future Minimum Lease Payments December 31, 2019 (in thousands) Operating Leases Finance Leases 2020 $ 4,305 $ 97 2021 2,718 83 2022 2,051 45 2023 1,459 22 2024 941 19 Thereafter 2,587 14 Total minimum lease payments $ 14,061 $ 280 Less imputed interest (1,100) (16) Total lease liabilities $ 12,961 $ 264 As of December 31, 2018, prior to the adoption of ASU 2016-02, the approximate future minimum rental payments required under operating leases that have initial or remaining non-cancelable lease terms in excess of one year were: December 31, 2018 (in thousands) Operating Leases Capital Leases 2019 $ 3,310 $ 125 2020 2,453 97 2021 1,308 62 2022 743 24 2023 419 1 Thereafter 79 — Total minimum lease payments $ 8,312 $ 309 Less imputed interest — (11) Total lease liabilities $ 8,312 $ 298 Rental expense for operating leases was $5,515,000 for 2019, $5,087,000 for 2018, and $4,788,000 for 2017. Future Lease Commencements As of December 31, 2019, we have additional operating leases, that have not yet commenced in the amount of $116,000. These operating leases will commence in fiscal year 2020. Supplemental balance sheet information related to leases was as follows: Operating Leases (in thousands) December 31, 2019 Other non-current assets $ 12,858 Accrued liabilities 3,972 Other long-term liabilities 8,989 Total operating lease liabilities $ 12,961 Finance Leases (in thousands) December 31, 2019 Property, plant and equipment, gross $ 524 Accumulated Depreciation (265) Property, plant and equipment, net $ 259 Current maturities of long-term debt and finance lease obligations $ 90 Long-term debt and finance lease obligations, net of current maturities 174 Total finance lease liabilities $ 264 Weighted Average Remaining Lease Term Operating leases 5.10 years Finance leases 3.47 years Weighted Average Discount Rate Operating leases 3.29 % Finance leases 3.39 % Supplemental Cash Flow information related to leases was as follows: Twelve Months Ended December 31, (in thousands) 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from finance leases $ 10 Operating cash flows from operating leases 4,507 Financing cash flows from finance leases 122 |
Accrued Liabilities
Accrued Liabilities | 12 Months Ended |
Dec. 31, 2019 | |
Payables and Accruals [Abstract] | |
ACCRUED LIABILITIES | ACCRUED LIABILITIES Accrued liabilities consist of the following balances: December 31, (in thousands) 2019 2018 Salaries, wages and bonuses $ 28,296 $ 22,598 Taxes 5,130 6,621 Warranty 10,249 4,992 Retirement Provision 2,795 2,646 Customer Deposits 2,430 2,520 Other 10,786 4,408 Accrued Liabilities $ 59,686 $ 43,785 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | FAIR VALUE OF FINANCIAL INSTRUMENTS U.S. GAAP requires or permits certain assets or liabilities to be measured at fair value on a recurring or non- recurring basis in our balance sheets. U.S. GAAP also requires the disclosure of the fair values of financial instruments when on option to elect fair value accounting has been provided but such election has not been made. A debt obligation is an example of such a financial instrument. 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. When measuring fair value, the Company maximizes use of observable inputs and minimizes the use of unobservable inputs. 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 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, 2019 and 2018, as the floating rates on our outstanding balances approximate current market rates. This conclusion was made based on Level 2 inputs. Fair values determined by Level 2 utilize inputs that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active. Other than the investments held by the retirement benefit plans, as described in Note 17 to the Consolidated Financial Statements, the Company does not have any other significant financial assets or liabilities measured at fair value on a recurring basis. The Company has no recurring nor nonrecurring valuations that fall under Level 3 of the fair value hierarchy as of December 31, 2019 and 2018. |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
LONG-TERM DEBT | LONG-TERM DEBT The components of long-term debt are as follows: December 31, (in thousands) 2019 2018 Bank revolving credit facility $ 145,000 $ 85,000 Term debt 298,717 — Capital lease obligations 264 298 Total debt 443,981 85,298 Less current maturities 18,840 119 Total long-term debt $ 425,141 $ 85,179 On October 24, 2019, the Company, as Borrower, and each of its domestic subsidiaries as guarantors, entered into a Second Amended and Restated Credit Agreement (the Credit Agreement ) with Bank of America, N.A., as Administrative Agent. The Credit Agreement provides the Company with the ability to request loans and other financial obligations in an aggregate amount of up to $650,000,000 and, subject to certain conditions, the Company has the option to request an increase in aggregate commitments of up to an additional $200,000,000. Pursuant to the Credit Agreement, the Company has borrowed $300,000,000 pursuant to a Term Facility repayable with interest quarterly at a percentage of the initial principal amount of the Term Facility of 5.0% per year with the remaining principal due in 5 years. Up to $350,000,000 is available under the Credit Agreement pursuant to a Revolver Facility which terminates in 5 years. The Agreement requires the Company to maintain two financial covenants, 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 Term Facility and the Revolver Facility is October 24, 2024. As of December 31, 2019, $443,717,000 was outstanding under the Credit Agreement. Of the total outstanding, $298,717,000 was on the Term Facility at a rate of 4.19% and $145,000,000 was on the Revolver Facility at a weighted average rate of 4.32%. On December 31, 2019, $3,025,000 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 $201,975,000 in available borrowings. The Company is in compliance with the covenants under the Agreement. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Income Statement Components The jurisdictional components of income before taxes consist of the following: December 31, (in thousands) 2019 2018 2017 Income before income taxes: Domestic $ 54,566 $ 66,858 $ 61,329 Foreign 29,769 27,673 21,038 $ 84,335 $ 94,531 $ 82,367 The components of income tax expense (benefit) consist of the following: December 31, (in thousands) 2019 2018 2017 Current: Domestic $ 6,403 $ 6,771 $ 26,713 Foreign 8,419 7,391 6,222 State 3,291 4,831 3,789 18,113 18,993 36,724 Deferred: Domestic 3,800 2,542 1,711 Foreign (280) (390) (155) State (204) (100) (228) 3,316 2,052 1,328 Total income taxes $ 21,429 $ 21,045 $ 38,052 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 21% in 2019 and 2018 and 35% in 2017 to income before income taxes consists of the following: December 31, (in thousands) 2019 2018 2017 Income tax expense at statutory rates $ 17,710 $ 19,851 $ 28,828 Increase (reduction) from: Jurisdictional rate differences 988 719 (1,863) Valuation allowance 460 (267) 308 Stock based compensation (358) (205) (778) U.S. state taxes 3,125 3,917 2,463 Domestic production deduction — — (1,039) R&D credit (699) (531) (500) GILTI 872 673 — Previously unrecognized tax benefit (1,504) — — Other, net 835 219 397 Provision for income taxes before tax reform $ 21,429 $ 24,376 $ 27,816 Effective tax rate before effects of tax reform 25 % 26 % 34 % Tax Reform: Rate change of deferreds — 1,200 (3,334) Transition tax on deemed repatriation — (4,531) 13,104 Other — — 466 Impact of tax reform $ — $ (3,331) $ 10,236 Provision for income tax $ 21,429 $ 21,045 $ 38,052 Effective tax rate 25 % 22 % 46 % Deferred Income Tax Assets and Liabilities 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) 2019 2018 Deferred income tax assets: Inventory basis difference $ 4,351 $ 1,825 Accounts receivable reserve 384 251 Rental equipment and Property, plant and equipment 73 56 Stock based compensation 391 672 Pension liability 2,874 3,204 Employee benefit accrual 1,669 1,911 Product liability and warranty reserves 2,526 1,294 Foreign net operating loss 4,485 4,164 Lease liability 3,046 — State net operating loss 148 148 Other 190 (156) Total deferred income tax assets $ 20,137 $ 13,369 Less: Valuation allowance (4,156) (3,696) Net deferred income tax assets $ 15,981 $ 9,673 Deferred income tax liabilities: Inventory basis differences $ (122) $ — Rental equipment and Property, plant and equipment (17,327) (9,928) Lease asset (3,022) — Intangible assets (18,897) (8,944) Expenses not currently deductible for book purposes (1,996) (749) Total deferred income tax liabilities $ (41,364) $ (19,621) Net deferred income taxes $ (25,383) $ (9,948) As of December 31, 2019, 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 carry-forwards are approximately $10,519,000 with an unlimited carry-forward period, and $5,363,000 with a carry-forward expiring in 2036. The Company also has U.S. state net operating loss carry-forwards in the amount of $4,602,000 which will expire between 2020 and 2030. We have recorded a valuation allowance as of December 31, 2019 and 2018 due to uncertainties related to our ability to utilize some of the deferred income tax assets, primarily consisting of international operating losses and foreign tax credits generated by the transition tax, 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. During 2019, the valuation allowance increased $460,000 related to operating losses generated by foreign affiliates. Unrecognized Tax Benefits Unrecognized tax benefits in the amount of $262,000 and $236,000 for 2019 and 2018, 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. Unrecognized Tax Benefits December 31, 2019 2018 Balance as of beginning of year $ 236,000 $ 234,000 Increases for tax positions related to the current year 88,000 63,000 Increases in tax positions taken related to liabilities assumed in acquisitions 2,219,000 — Decreases in tax positions taken related to liabilities assumed in acquisitions (1,504,000) — Decreases as a result of settlements with taxing authorities related to liabilities assumed in acquisitions (715,000) — Decreases due to lapse of statute of limitations (62,000) (61,000) Balance as of end of year $ 262,000 $ 236,000 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, 2019, no interest or penalties has been accrued. The Company’s open tax years for its federal and state income tax returns are for the tax years ended 2015 through 2019. The Company’s open tax years for its foreign income tax returns are for the tax years ended 2013 through 2019. The Company previously considered substantially all of the earnings in our foreign subsidiaries to be permanently reinvested and, accordingly, recorded no deferred income taxes on such earnings. As a result of the fundamental changes to the taxation of multinational corporations created by TCJA, we no longer intend to permanently reinvest all of the historical undistributed earnings of our foreign affiliates. We will distribute earnings from our European subsidiaries, while maintaining our permanent reinvestment for our other foreign subsidiaries. There will generally be no U.S. corporate taxes imposed on such future distributions of foreign earnings or foreign withholding and other local taxes. For the amounts we continue to assert permanent reinvestment, if the amounts were distributed, the company would be subject to approximately $3,965,000 in withholding taxes. |
Common Stock
Common Stock | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
COMMON STOCK | COMMON STOCKOn January 2, 2020, the Board of Directors of the Company declared a quarterly dividend of $0.13 per share which was paid on January 29, 2020 to holders of record as of January 16, 2020. The Company also has a share repurchase program under which the Company is authorized to repurchase, in the aggregate, up to $30 million of its outstanding common stock. During 2019, the Company purchased 40,000 shares. |
Stock Options
Stock Options | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
STOCK OPTIONS | STOCK OPTIONS Incentive Stock Option Plan 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. 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. We also maintain other incentive option plans that have expired, under which previously granted awards remain outstanding. No additional grants may be awarded under these plans. Following is a summary of activity in the Incentive Stock Option Plans for the periods indicated: 2019 2018 2017 Shares Exercise Price* Shares Exercise Price* Shares Exercise Price* Options outstanding at beginning of year 140,170 $ 49.78 172,875 $ 43.91 220,820 $ 37.39 Granted 12,150 105.56 9,500 92.50 10,750 83.99 Exercised (28,100) 38.93 (41,205) 34.89 (54,945) 24.83 Canceled (4,500) 58.57 (1,000) 54.49 (3,750) 54.57 Options outstanding at end of year 119,720 57.65 140,170 49.78 172,875 43.91 Options exercisable at end of year 85,070 $ 47.10 96,320 $ 41.56 111,875 $ 36.44 Options available for grant at end of year 327,250 336,450 344,950 *Weighted Averages Options outstanding and exercisable at December 31, 2019 were as follows: Qualified Stock Options Options Outstanding Options Exercisable Shares Remaining Contractual Life (yrs)* Exercise Price* Shares Exercise Price* Range of Exercise Price $26.45 - $42.70 39,820 2.57 $ 35.89 39,820 $ 35.89 $49.44 - $83.99 59,800 5.60 $ 57.89 43,600 $ 55.62 $92.50 - $105.56 20,100 8.94 $ 100.07 1,650 $ 92.50 Total 119,720 85,070 *Weighted Averages The weighted-average grant-date fair values of options granted during 2019, 2018, and 2017 were $39.85, $38.77 and $36.00, respectively. Stock option expense was $451,000, $482,000 and $597,000 for years ending 2019, 2018, and 2017, respectively. As of December 31, 2019, there was $755,000 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. Equity Incentive Plan On May 2, 2019, the stockholders of the Company approved the 2019 Equity Incentive Plan and the Company reserved 500,000 shares of common stock for issuance of equity awards including the issuance of non-qualified options for the purchase of shares of our common stock which may be granted to Company officers and non-employee directors. 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. 2019 (1) 2018 (2) 2017 (2) Options available for grant at end of year 499,640 146,075 176,294 1. In 2019, options available are from the 2019 Equity Incentive Plan. 2. In 2018 and 2017, options available are from the 2009 Equity Incentive Plan. We also maintain other incentive option plans that have expired, under which previously granted awards remain outstanding. No additional grants may be awarded under these plans. Non-Qualified Options Following is a summary of activity in the Non-Qualified Stock Option Plans for the periods indicated: 2019 2018 2017 Shares Exercise Price* Shares Exercise Price* Shares Exercise Price* Options outstanding at beginning of year 40,200 $ 42.99 67,000 $ 42.43 112,400 $ 34.48 Granted — — — — — — Exercised (34,900) 42.40 (26,800) 41.61 (45,400) 22.73 Canceled — — — — — — Options outstanding at end of year 5,300 46.87 40,200 42.99 67,000 42.43 Options exercisable at end of year 5,300 $ 46.87 34,400 $ 41.21 50,400 $ 39.86 *Weighted Averages Options outstanding and exercisable as of December 31, 2019 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 $26.45 - $42.70 1,300 1.36 26.45 1,300 26.45 $49.44 - $83.99 4,000 4.37 $ 53.51 4,000 $ 53.51 Total 5,300 5,300 *Weighted Averages There were no options granted in 2017 , 2018 or 2019. Stock option expense was $8,000, $22,000 and $22,000 for years ending 2019, 2018, and 2017, respectively. As of December 31, 2019, there was zero 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 2019, 2018, and 2017, 34,900, 26,800, and 45,400 non-qualified options were exercised, respectively, $1,480,000, $1,115,000, and $1,032,000 of cash receipts were received, respectively. Restricted Stock Awards/Units Following is a summary of activity in the Restricted Stock Awards for the periods indicated: 2019 2018 2017 Shares Grant-Date Fair Value* Shares Grant-Date Fair Value* Shares Grant-Date Fair Value* Awards outstanding at beginning of year 75,636 $ 81.39 63,052 $ 70.08 45,621 $ 54.58 Granted 36,060 105.69 35,300 92.50 33,620 84.34 Exercised (32,466) 69.94 (22,266) 66.91 (16,189) 56.03 Canceled (525) 99.96 (450) 83.99 — — Awards outstanding at end of year 78,705 94.34 75,636 81.39 63,052 70.08 *Weighted Averages Restricted stock awards 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 |
Retirement Benefit Plans
Retirement Benefit Plans | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [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 Employees’ Retirement Plan covers approximately 245 former employees and 64 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 Gradall Company Hourly Employees’ Pension Plan covered former employees and 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. On April 6, 2016, the Company notified all participants in the Gradall Company Hourly Employees’ Pension Plan of our decision to terminate the plan. Participants in the plan did not lose any benefits but were given a choice between obtaining certain continued annuity benefits that match the benefits offered under the plan or receiving an immediate one-time lump sum payment in total settlement of benefits. The Company made a final contribution of $622,000 and met all legal requirements to effectuate a proper termination of the plan before December 31, 2016. The Company expensed $2,889,000 related to accumulative pension actuarial losses relating to the closure of the Gradall Hourly Employees' Savings and Investment Plan that had been previously deferred in Other comprehensive income and deferred taxes. The following table sets 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 the plan. The measurement dates of the assets and liabilities of the plan were December 31 of the respective years presented. Reconciliation of Funded Status Year Ended December 31, (in thousands) 2019 2018 Change in projected benefit obligation Benefit obligation at beginning of year $ 20,050 $ 21,552 Service cost 3 4 Interest cost 819 757 Liability actuarial (gain) loss 2,604 (1,270) Benefits paid (1,027) (993) Benefit obligation at end of year 22,449 20,050 Change in fair value of plan assets Fair value of plan assets at beginning of year 18,106 20,327 Return on plan assets 3,526 (1,228) Employer contributions — — Benefits paid (1,027) (993) Fair value of plan assets at end of year 20,605 18,106 Funded status (1,844) $ (1,944) 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 plan of $1,844,000 and $1,944,000 as of December 31, 2019 and 2018, 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 plan 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: Rates to Determine Benefit Obligation Year Ended December 31, 2019 2018 Discount rate 3.15% 4.20% Composite rate of compensation increase N/A N/A Rates to Determine Net Periodic Benefit Cost Year Ended December 31, 2019 2018 Discount rate 4.20% 3.60% Long-term rate of return on plan assets 7.25% 7.25% Composite rate of compensation increase 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 table presents the components of net periodic benefit cost (gains are denoted with parentheses and losses are not): Components of Net Periodic Benefit Cost Year Ended December 31, (in thousands) 2019 2018 Service cost $ 3 $ 4 Interest cost 819 757 Expected return on plan assets (1,273) (1,454) Amortization of net loss 542 346 Net periodic benefit cost $ 91 $ (347) The Company estimates that $508,000 of unrecognized actuarial expense will be amortized from Accumulated other comprehensive income (loss) into net periodic benefit costs during 2020. 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 capitalization. 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 allocation as a percentage of plan assets at December 31 are as follows: Asset Allocation as a Percentage of the Plan Year Ended December 31, 2019 2018 Equity securities 56% 55% Debt securities 37% 38% Short-term investments 2% 2% Other 5% 5% Total 100% 100% The following table presents the hierarchy levels for our postretirement benefit plan investments as of December 31 as described in Note 1 to the Consolidated Financial Statements: December 31, 2019 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 $ 2,239 $ 2,239 $ — $ — Large Cap 2,574 2,574 — — International 1,879 1,879 — — Common/Collective Trusts: Wells Fargo Liability Driven Solution 2,866 — 2,866 — Wells Fargo BlackRock International Equity 861 — 861 — Wells Fargo Core Bond 1,413 — 1,413 — Wells Fargo/Causeway International 864 — 864 — Wells Fargo BlackRock Large Cap Growth Index Fund 1,153 — 1,153 — Wells Fargo BlackRock Large Cap Value Index Fund 1,159 — 1,159 — Wells Fargo Multi-Manager Small Cap 1,434 — 1,434 — Wells Fargo BlackRock Russell 2000 Index Fund 667 — 667 — Wells Fargo BlackRock S&P Mid Cap Index Fund 732 — 732 — Wells Fargo/MFS Value CIT F 599 — 599 — Wells Fargo/T. Rowe Price Large-Cap Growth Managed CIT 602 — 602 — Wells Fargo/T. Rowe Price Equity Income 590 — 590 — Wells Fargo Voya Large Cap Growth CIT F 605 — 605 — Cash & Short-term Investments 368 368 — — Total $ 20,605 $ 7,060 $ 13,545 $ — December 31, 2018 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 $ 1,176 $ 1,176 $ — $ — Large Cap 2,618 2,618 — — International 2,051 2,051 — — Common/Collective Trusts: Wells Fargo Liability Driven Solution 2,532 — 2,532 — Wells Fargo BlackRock International Equity 765 — 765 — Wells Fargo Core Bond 1,266 — 1,266 — Wells Fargo/Causeway International 766 — 766 — Wells Fargo BlackRock Large Cap Growth Index Fund 1,026 — 1,026 — Wells Fargo BlackRock Large Cap Value Index Fund 1,025 — 1,025 — Wells Fargo Multi-Manager Small Cap 1,246 — 1,246 — Wells Fargo BlackRock Russell 2000 Index Fund 573 — 573 — Wells Fargo BlackRock S&P Mid Cap Index Fund 641 — 641 — Wells Fargo/MFS Value CIT F 516 — 516 — Wells Fargo/T. Rowe Price Large-Cap Growth Managed CIT 516 — 516 — T. Rowe Price Equity Income 515 — 515 — Wells Fargo Voya Large Cap Growth CIT F 516 — 516 — Cash & Short-term Investments 358 358 — — Total $ 18,106 $ 6,203 $ 11,903 $ — 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, 2019 were obtained from the custodian and are based on quoted market prices of individual investments; however, since the fund itself does not have 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, 2019. The following table illustrates the estimated pension benefit payments that are projected to be paid: Projected Future Benefit Payments (in thousands) Employees’ Retirement Plan 2020 $ 1,152 2021 1,237 2022 1,267 2023 1,286 2024 1,294 Years 2025 through 2029 6,407 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 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 expectancy. The net periodic costs are recognized as employees render the services necessary to earn the SERP benefits. In May of 2015, the Board amended the SERP to allow the Board to modify the retirement benefit percentage either higher or lower than 20%. In May of 2016, the Board added additional highly compensated employees to the plan. As of December 31, 2019, the current retirement benefit (as defined in the plan) for the participants ranges from 10% to 20%. The change in the Projected Benefit Obligation (PBO) as of December 31, 2019 and 2018, is shown below: Reconciliation of Benefit Obligation Year Ended December 31, (in thousands) 2019 2018 Benefit obligation at January 1, $ 7,446 $ 5,945 Service cost 240 249 Interest cost 298 248 Liability actuarial loss (gain) 1,193 (328) Benefits paid (155) (98) Plan amendments — 1,430 Benefit obligation at December 31, $ 9,022 $ 7,446 The components of net periodic pension expense were as follows: Components of Net Periodic Benefit Cost Year Ended December 31, (in thousands) 2019 2018 Service cost $ 240 $ 249 Interest cost 298 248 Amortization of prior service cost 318 501 Net periodic benefit cost $ 856 $ 998 The Company estimates that $475,000 of unrecognized actuarial expense will be amortized from accumulated other comprehensive income into net periodic benefit costs during 2020. 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: Rates to Determine Benefit Obligation 2019 2018 Discount rate 2.95% 4.10% Composite rate of compensation increase 3.00% 3.00% Assumptions used to determine net periodic benefit cost for the years ended December 31: Rates to Determine Net Periodic Benefit Cost 2019 2018 Discount rate 4.10% 3.45% 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: Projected Future Benefit Payments (in thousands) SERP 2020 $ 1,205 2021 350 2022 450 2023 453 2024 480 Years 2025 through 2029 3,258 Defined Contribution Plans The Company has two defined contribution plans, The Gradall Salaried Employees’ Savings and Investment Plan (“Salary Plan”) and The International Association of Machinist and Aerospace Workers Retirement Plan (“IAM Plan”). The Company contributed $557,000, $418,000, and $408,000 to the IAM Plan for the plan years ended December 31, 2019, 2018 and 2017, 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 2019, 2018 and 2017 were $2,806,000, $2,340,000, and $1,942,000, 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 0% and 10% of the participant’s salary up to a specific limit. Total contributions made to the above plans were $861,000, $850,000, and $716,000 for the years ended December 31, 2019, 2018 and 2017, respectively. |
Revenue and Segment Reporting
Revenue and Segment Reporting | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
REVENUE AND SEGMENT REPORTING | REVENUE AND SEGMENT REPORTING Disaggregation of revenue is presented in the tables below by product type. Management has determined that this level of disaggregation would be beneficial to users of the financial statements. Revenue by Product Type December 31, (in thousands) 2019 2018 2017 Net Sales Wholegoods $ 875,805 $ 802,403 $ 714,862 Parts 207,766 186,979 182,412 Other 35,567 19,440 15,106 Consolidated $ 1,119,138 $ 1,008,822 $ 912,380 Other includes rental sales, extended warranty sales and service sales as it is considered immaterial. Effective for the fourth quarter of 2019, the Company began reporting its operating results on the basis of two segments, the Industrial Division and Agricultural Division. Prior to the fourth quarter of 2019, the Company had been reporting its operating results on the basis of three segments which included the Company's European Division. The Company's European Division was a mixture of industrial and agricultural products similar to those within the other two segments. The Company's prior period segment information has been retrospectively adjusted to reflect the current segment presentation. The Company has included a summary of the financial information by reporting segment. The following table presents the revenue and income from operations by reporting segment for the years ended December 31, 2019, 2018, and 2017: December 31, (in thousands) 2019 2018 2017 Net Revenue Industrial $ 768,454 $ 638,198 $ 563,599 Agricultural 350,684 370,624 348,781 Consolidated $ 1,119,138 $ 1,008,822 $ 912,380 Income from Operations Industrial $ 65,262 $ 65,077 $ 55,752 Agricultural 29,386 36,011 32,986 Consolidated $ 94,648 $ 101,088 $ 88,738 The following table presents the goodwill and total identifiable assets by reporting segment for the years ended December 31, 2019 and 2018: December 31, (in thousands) 2019 2018 Goodwill Industrial $ 183,307 $ 68,672 Agricultural 14,715 14,571 Consolidated $ 198,022 $ 83,243 Identifiable Assets Industrial $ 922,738 $ 440,729 Agricultural 290,025 280,904 Consolidated $ 1,212,763 $ 721,633 |
International Operations and Ge
International Operations and Geographic Information | 12 Months Ended |
Dec. 31, 2019 | |
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: International Operations Financial Information December 31, (in thousands) 2019 2018 2017 Net sales $ 357,602 $ 297,246 $ 254,144 Income from operations 32,518 28,301 23,110 Income before income taxes 31,975 29,254 22,476 Identifiable assets 333,392 244,888 227,758 Following is other selected geographic financial information on the Company’s operations: Geographic Financial Information December 31, (in thousands) 2019 2018 2017 Geographic net sales: United States $ 774,854 $ 726,582 $ 663,600 France 99,145 90,956 86,443 Canada 72,950 62,077 52,332 United Kingdom 52,098 51,043 44,416 Brazil 17,919 16,829 9,321 Netherlands 23,462 3,983 4,312 China 16,384 9,479 2,071 Germany 7,825 1,600 2,811 Australia 7,550 9,055 12,778 Other 46,951 37,218 34,296 Total net sales $ 1,119,138 $ 1,008,822 $ 912,380 Geographic location of long-lived assets: United States $ 515,189 $ 191,958 $ 171,048 Netherlands 37,930 — — Canada 32,606 21,647 24,302 United Kingdom 19,840 19,270 18,948 France 19,513 18,650 19,324 Brazil 15,096 15,701 11,558 Australia 1,021 815 917 Total long-lived assets $ 641,195 $ 268,041 $ 246,097 Net sales are attributed to countries based on the location of customers. |
Other Commitments and Contingen
Other Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
OTHER COMMITMENTS AND CONTINGENCIES | OTHER COMMITMENTS AND CONTINGENCIES The Company is subject to various unresolved legal actions that arise in the ordinary course of its business. The most significant of such actions relates to product liability, which is generally covered by insurance after various self-insured retention amounts. While amounts claimed might be substantial and the liability with respect to such litigation cannot be determined at this time, the Company believes that the outcome of these matters will not have a material adverse effect on the Company’s consolidated financial position or results of operations; however, the ultimate resolution cannot be determined at this time. Also, 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. |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
QUARTERLY FINANCIAL DATA (Unaudited) | QUARTERLY FINANCIAL DATA (Unaudited) Summarized quarterly financial data for 2019 and 2018 are presented below. Seasonal influences affect the Company’s sales and profits, with heavier business occurring in May through August. (in thousands, except per share amounts) 2019 2018 First Second Third Fourth First Second Third Fourth Sales $ 261,934 $ 285,186 $ 271,829 $ 300,189 $ 238,087 $ 257,125 $ 257,572 $ 256,038 Gross profit 63,308 73,133 68,710 68,076 60,257 66,454 66,772 62,632 Net income 15,253 20,667 17,418 9,568 14,583 18,771 23,543 16,589 Earnings per share Diluted $ 1.30 $ 1.75 $ 1.47 $ 0.81 $ 1.24 $ 1.60 $ 2.00 $ 1.41 Average shares Diluted 11,777 11,798 11,813 11,811 11,739 11,759 11,777 11,768 Dividends per share $ 0.12 $ 0.12 $ 0.12 $ 0.12 $ 0.11 $ 0.11 $ 0.11 $ 0.11 Market price of common stock High $ 101.58 $ 106.19 $ 124.33 $ 129.74 $ 120.22 $ 118.93 $ 102.29 $ 93.45 Low $ 74.74 $ 93.00 $ 93.11 $ 103.60 $ 103.38 $ 88.60 $ 88.13 $ 72.85 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. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
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). |
Cash Equivalents | Cash EquivalentsThe Company considers all highly liquid investments with original maturities of three months or less from the date of purchase to be cash equivalents. |
Concentrations 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 | InventoriesInventories 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. |
Impairment of Long-lived assets | Impairment of Long-Lived Assets |
Goodwill | Goodwill Goodwill represents the excess of the purchase price over the estimated fair value of the identifiable net assets acquired. Goodwill is not amortized but is instead tested for impairment at least annually, or whenever events or circumstances change between the annual impairment tests that 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. The Company performs its annual test for goodwill impairment related to its reporting units on October 1 of each fiscal year. Impairment testing for goodwill is done at the reporting unit level. A reporting unit is an operating segment or one level below an operating segment (also known as a component). A component of an operating segment is a reporting unit if the component constitutes a business for which discrete financial information is available, and segment management regularly reviews the operating results of that component. We perform a qualitative assessment for all of our reporting units to determine whether it is more likely than not that an impairment exists. Factors considered include macroeconomic, industry and competitive conditions, legal and regulatory environment, historical financial performance and significant changes in the reporting unit. If the qualitative assessment indicates that it is more likely than not that an impairment exists, then a quantitative assessment is performed. Alternatively, we may also bypass the qualitative assessment and go ahead and perform step 1 to determine if the carrying amount exceeds the reporting unit’s fair value. If the fair value of the reporting unit is lower than its carrying amount, goodwill is written down for the amount by which the carrying amount exceeds the fair value. However, the loss recognized cannot exceed the carrying amount of goodwill. We typically use discounted cash flow models to determine the fair value of a reporting unit. The assumptions used in these models are consistent with those we believe a hypothetical marketplace participant would use. |
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 3 years to 25 years. Impairment of definite-lived assets is discussed as part of the Impairment of Long-Lived Assets paragraph above. The indefinite-lived assets not subject to amortization consist of trade names. 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. |
Leases | Leases We determine if an arrangement is a lease at inception. Operating leases are included in other non-current assets, accrued liabilities, and other long-term liabilities on our consolidated balance sheets. Finance leases are included in property, plant and equipment, accrued liabilities, and other long-term liabilities on our consolidated balance sheets. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The operating lease ROU asset also includes any lease payments made and excludes lease incentives. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. We have elected to not account for the lease and non-lease components separately for most of our asset classes with the exception of real-estate. We have also elected to exclude all lease agreements with an initial term of 12 months or less from the lease recognition requirements as allowed by ASC. |
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 (loss) 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. |
Revenue Recognition | Revenue Recognition The majority of the Company's revenue is recognized from product sales under contracts with customers. The Company presents two reportable operating segments within its financial statements: Industrial and Agricultural. Contract terms and performance obligations within each contractual agreement are generally consistent for both divisions, with small differences that do not have a significant impact on the revenue recognition considerations under Topic 606. Revenues are recognized when we satisfy our performance obligation to transfer product to our customers, which typically occurs at a point in time upon shipment or delivery of the product, and for an amount that reflects the transaction price that is allocated to the performance obligation. Our contracts with customers state the final terms of sale, including the description, quantity and price for goods sold. In the normal course of business, we generally do not accept product returns. The transaction price is the consideration that we expect to be entitled to in exchange for our products. Some of our contracts contain variable consideration in the form of sales incentives to our customers, such as discounts and rebates. For contracts that include variable consideration, we estimate the factors that determine the variable consideration in order to establish the transaction price. We have elected that any taxes collected from customers and remitted to government authorities (i.e., sales tax, use tax, etc.) are excluded from the measurement of the transaction price and therefore are excluded from net sales in the consolidated statements of operations. There are instances where we provide shipping services in relation to the goods sold to our customers. Shipping and handling costs that occur before the customer obtains control of the goods are deemed to be fulfillment activities and are included in cost of goods sold. We have elected to account for shipping and handling activities that occur after the customer has obtained control of a good as fulfillment activities (i.e., an expense) rather than as a promised service. |
Rental Equipment | Leases We determine if an arrangement is a lease at inception. Operating leases are included in other non-current assets, accrued liabilities, and other long-term liabilities on our consolidated balance sheets. Finance leases are included in property, plant and equipment, accrued liabilities, and other long-term liabilities on our consolidated balance sheets. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The operating lease ROU asset also includes any lease payments made and excludes lease incentives. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. We have elected to not account for the lease and non-lease components separately for most of our asset classes with the exception of real-estate. We have also elected to exclude all lease agreements with an initial term of 12 months or less from the lease recognition requirements as allowed by ASC. |
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. Advertising and marketing expense related to operations for fiscal years 2019, 2018, and 2017 was approximately $12,177,000, $11,773,000 and $9,566,000, respectively. Advertising and marketing expenses are included in Selling, General and Administrative expenses (“SG&A”). |
Research and Development | Research and DevelopmentProduct development and engineering costs charged to SG&A |
Commitments and Contingencies | Commitments and Contingencies 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. |
Income Taxes | 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 carry backs and tax planning strategies in making this assessment other than those which we have reserved. We have elected to treat the global intangible low-taxed income (GILTI) tax as a period expense. |
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 that 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 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. |
Accounting Pronouncements | Accounting Pronouncements Adopted on January 1, 2019 In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842)". This update requires that a lessee recognize in the statement of financial position a liability to make lease payments and a right-of-use asset representing its right to use the underlying asset for the lease term. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and lease liabilities. Similar to current guidance, the update continues to differentiate between finance leases and operating leases, however this distinction now primarily relates to differences in the manner of expense recognition over time and in the classification of lease payments in the statement of cash flows. The updated guidance leaves the accounting for leases by lessors largely unchanged from existing GAAP. The guidance became effective for us on January 1, 2019. As a lessee, this standard primarily impacted our accounting for long-term real estate and equipment leases, for which we recognized right-of-use assets of $7,747,000 and a corresponding lease liability of $7,868,000 on our consolidated balance sheet. We adopted these provisions on January 1, 2019 using the optional transition method that permits us to apply the new disclosure requirements in 2019 and continue to present comparative period information as required under FASB ASC Topic 840, "Leases". We did not have a cumulative-effect adjustment to the opening balance of retained earnings at the date of adoption. We elected the package of practical expedients permitted under the transition guidance within the new standard, which, among other things, allowed us to not account for lease and non-lease components separately for most of our asset classes and to exclude leases with an initial term of 12 months or less from the right-of-use assets and liabilities. Adoption of the standards had no impact on results of operations or liquidity. In February 2018, the FASB issued ASU 2018-02, “Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income", to allow reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act ("TCJA"). Upon adoption of the ASU, entities will be required to disclose a description of the accounting policy for releasing income tax effects from accumulated other comprehensive income. The standard is required to be adopted for periods beginning after December 15, 2018, with early adoption available for any set of financial statements that have yet to be issued or made available for issuance including retrospectively for any period in which the effect of the change is the U.S. corporate income tax rate in the TCJA is recognized. The adoption of this ASU did not have a material impact on the Company's consolidated financial statements. Accounting Pronouncements Not Yet Adopted In August 2018, the FASB issued Accounting Statement Update (ASU) No. 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement”, which modifies the disclosures requirements on fair value measurements. Among other things, the amendments add disclosures for changes in unrealized gains and losses on Level 3 fair value measurements and requires additional disclosures on unobservable inputs associated with Level 3 assets. The guidance will become effective for us on January 1, 2020. The Company does not expect the adoption of this ASU to have a material impact on its consolidated financial statements. In August 2018, the FASB issued Accounting Statement Update (ASU) No. 2018-14, “Compensation, Defined Benefit Plans", which modifies the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. The update removes certain disclosures that are no longer considered cost beneficial and adds disclosure requirements identified as relevant. The guidance will become effective for us on January 1, 2021 with early adoption permitted for any financial statements that have not been issued. The impacts that adoption of the ASU is expected to have on our financial disclosures is being evaluated. In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments - Credit Losses,” to improve information on credit losses for financial instruments. The ASU replaces the current incurred loss impairment methodology with a methodology that reflects expected credit losses. The ASU is effective for the Company for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted beginning in fiscal years beginning after December 15, 2018. The Company does not expect the adoption of this ASU to have a material impact on its consolidated financial statements. In December 2019, the FASB issued ASU No. 2019-12, “Income Taxes” to simplify the accounting for income taxes. The amendments in this Update simplify the accounting for income taxes by removing certain exceptions to |
Inventories - Obsolete and Slow Moving | Inventories – Obsolete and Slow Moving The Company had a reserve of $8,233,000 on December 31, 2019 and $7,194,000 on December 31, 2018 to cover obsolete and slow moving inventory. The increase in the reserve was primarily attributable to the Company's Industrial Division. The obsolete and slow moving inventory reserve is calculated as follows: 1) no inventory usage over a three three |
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. six |
Fair Value of Financial Instruments | U.S. GAAP requires or permits certain assets or liabilities to be measured at fair value on a recurring or non- recurring basis in our balance sheets. U.S. GAAP also requires the disclosure of the fair values of financial instruments when on option to elect fair value accounting has been provided but such election has not been made. A debt obligation is an example of such a financial instrument. 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. When measuring fair value, the Company maximizes use of observable inputs and minimizes the use of unobservable inputs. 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 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, 2019 and 2018, as the floating rates on our outstanding balances approximate current market rates. This conclusion was made based on Level 2 inputs. Fair values determined by Level 2 utilize inputs that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active. Other than the investments held by the retirement benefit plans, as described in Note 17 to the Consolidated Financial Statements, the Company does not have any other significant financial assets or liabilities measured at fair value on a recurring basis. The Company has no recurring nor nonrecurring valuations that fall under Level 3 of the fair value hierarchy as of December 31, 2019 and 2018. |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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 2019, 2018, and 2017: Fair Value Calculation Assumptions for Stock Compensation December 31, 2019 2018 2017 Risk-free interest rate 2.43 % 2.94 % 2.23 % Dividend yield 0.5 % 0.5 % 0.5 % Volatility factors 31.2 % 34.5 % 37.6 % Weighted-average expected life 8.0 years 8.0 years 8.0 years |
Business Combinations (Tables)
Business Combinations (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Schedule of Assets Acquired and Liabilities Assumed | The following table reflects the estimated fair value of the assets acquired and liabilities assumed as of the acquisition date (in thousands): Cash $ 87 Accounts receivable 6,278 Inventory 17,731 Prepaid and other assets 1,451 Property, plant and equipment 13,439 Intangible assets 14,095 Deferred tax liability (4,265) Other liabilities assumed (8,302) Net assets assumed $ 40,514 Goodwill 12,097 Acquisition Price $ 52,611 The following table reflects the estimated fair value of the assets acquired and liabilities assumed as of the acquisition date (in thousands): Accounts receivable $ 13,966 Inventory 72,972 Prepaid and other assets 5,180 Rental Equipment 1,133 Property, plant and equipment 44,552 Intangible assets 149,015 Deferred tax liability (7,628) Other liabilities assumed (32,275) Net assets assumed $ 246,915 Goodwill 102,662 Total Acquisition Price net cash 349,577 Plus: Cash 4,735 Total Consideration 354,312 |
Schedule of Business Acquisition, Pro Forma Information | The unaudited pro forma statement of income of the Company is as follows: (Unaudited) (In thousands, except per share amounts) 2019 2018 Net sales $ 1,329,901 $ 1,214,285 Net income $ 69,417 $ 56,697 Diluted earnings per share $ 5.88 $ 4.82 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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) 2019 2018 2017 Net income $ 62,906 $ 73,486 $ 44,315 Average common shares: Basic (weighted-average outstanding shares) 11,729 11,660 11,549 Dilutive potential common shares from stock options 71 101 133 Diluted (weighted-average outstanding shares) 11,800 11,761 11,682 Basic earnings per share $ 5.36 $ 6.30 $ 3.84 Diluted earnings per share $ 5.33 $ 6.25 $ 3.79 |
Valuation and Qualifying Acco_2
Valuation and Qualifying Accounts (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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 2019 Reserve for sales discounts $ 18,123 $ 91,962 $ 39 $ (93,241) $ 16,883 Reserve for inventory obsolescence 7,194 5,711 6,467 (11,139) 8,233 Reserve for warranty 4,992 8,273 4,343 (7,359) 10,249 2018 Reserve for sales discounts $ 15,652 $ 91,082 $ (48) $ (88,563) $ 18,123 Reserve for inventory obsolescence 6,932 3,773 (116) (3,395) 7,194 Reserve for warranty 5,335 5,815 (144) (6,014) 4,992 2017 Reserve for sales discounts $ 13,488 $ 82,724 $ 166 $ (80,726) $ 15,652 Reserve for inventory obsolescence 7,262 3,007 886 (4,223) 6,932 Reserve for warranty 5,262 7,224 567 (7,718) 5,335 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories consisted of the following on a cost basis, net of reserves for obsolescence and LIFO: December 31, (in thousands) 2019 2018 Finished goods and parts $ 227,823 $ 149,298 Work in process 21,918 12,732 Raw materials 17,933 14,600 Inventory, net $ 267,674 $ 176,630 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | Property, plant and equipment consist of the following: December 31, (in thousands) 2019 2018 Useful Lives Land $ 13,876 $ 11,970 Buildings and improvements 135,474 90,065 5-20 yrs. Machinery and equipment 121,870 88,806 3-10 yrs. Office furniture and equipment 10,749 10,290 3-7 yrs. Computer software 12,665 11,410 3-7 yrs. Transportation equipment 7,479 6,594 3 yrs. Property, plant and equipment, at cost 302,113 219,135 Accumulated depreciation (141,388) (131,905) Property, plant and equipment, net $ 160,725 $ 87,230 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The changes in the carrying amount of goodwill for the year ended December 31, 2017, 2018, and 2019 are as follows: Industrial Agricultural Consolidated (in thousands) Balance at December 31, 2016 $ 63,152 $ 11,673 $ 74,825 Translation adjustment 1,506 689 2,195 Goodwill acquired 4,846 2,895 7,741 Balance at December 31, 2017 $ 69,504 $ 15,257 $ 84,761 Translation adjustment (916) (1,460) (2,376) Goodwill adjustment 84 774 858 Balance at December 31, 2018 $ 68,672 $ 14,571 $ 83,243 Translation adjustment (124) 144 20 Goodwill acquired 114,759 — 114,759 Balance at December 31, 2019 $ 183,307 $ 14,715 $ 198,022 |
Definite- and Indefinite-Live_2
Definite- and Indefinite-Lived Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2018 Definite: Trade names and trademarks 15-25 years $ 67,222 $ 23,938 Customer and dealer relationships 8-15 years 121,508 32,260 Patents and developed technologies 3-12 years 28,485 2,061 Favorable leasehold interests 7 years 4,200 — Total at cost 221,415 58,259 Less accumulated amortization (20,643) (14,902) Total net 200,772 43,357 Indefinite: Trade names and trademarks 5,500 5,500 Total Intangible Assets $ 206,272 $ 48,857 |
Schedule of 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, 2018 Definite: Trade names and trademarks 15-25 years $ 67,222 $ 23,938 Customer and dealer relationships 8-15 years 121,508 32,260 Patents and developed technologies 3-12 years 28,485 2,061 Favorable leasehold interests 7 years 4,200 — Total at cost 221,415 58,259 Less accumulated amortization (20,643) (14,902) Total net 200,772 43,357 Indefinite: Trade names and trademarks 5,500 5,500 Total Intangible Assets $ 206,272 $ 48,857 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Components of Lease Expense | As of December 31, 2019, the components of lease cost were as follows: Components of Lease Cost Twelve Months Ended December 31, (in thousands) 2019 Finance lease cost: Amortization of right-of-use assets $ 125 Interest on lease liabilities 10 Operating lease cost 4,457 Short-term lease cost 594 Variable lease cost 464 Total lease cost $ 5,650 |
Operating Lease Maturity | As of December 31, 2019, future minimum lease payments under these non-cancelable leases are: Future Minimum Lease Payments December 31, 2019 (in thousands) Operating Leases Finance Leases 2020 $ 4,305 $ 97 2021 2,718 83 2022 2,051 45 2023 1,459 22 2024 941 19 Thereafter 2,587 14 Total minimum lease payments $ 14,061 $ 280 Less imputed interest (1,100) (16) Total lease liabilities $ 12,961 $ 264 |
Finance Lease Maturity | As of December 31, 2019, future minimum lease payments under these non-cancelable leases are: Future Minimum Lease Payments December 31, 2019 (in thousands) Operating Leases Finance Leases 2020 $ 4,305 $ 97 2021 2,718 83 2022 2,051 45 2023 1,459 22 2024 941 19 Thereafter 2,587 14 Total minimum lease payments $ 14,061 $ 280 Less imputed interest (1,100) (16) Total lease liabilities $ 12,961 $ 264 |
Schedule of Future Minimum Operating Lease Payments | s of December 31, 2018, prior to the adoption of ASU 2016-02, the approximate future minimum rental payments required under operating leases that have initial or remaining non-cancelable lease terms in excess of one year were: December 31, 2018 (in thousands) Operating Leases Capital Leases 2019 $ 3,310 $ 125 2020 2,453 97 2021 1,308 62 2022 743 24 2023 419 1 Thereafter 79 — Total minimum lease payments $ 8,312 $ 309 Less imputed interest — (11) Total lease liabilities $ 8,312 $ 298 |
Schedule of Future Minimum Capital Lease Payments | s of December 31, 2018, prior to the adoption of ASU 2016-02, the approximate future minimum rental payments required under operating leases that have initial or remaining non-cancelable lease terms in excess of one year were: December 31, 2018 (in thousands) Operating Leases Capital Leases 2019 $ 3,310 $ 125 2020 2,453 97 2021 1,308 62 2022 743 24 2023 419 1 Thereafter 79 — Total minimum lease payments $ 8,312 $ 309 Less imputed interest — (11) Total lease liabilities $ 8,312 $ 298 |
Supplemental Balance Sheet Information Related to Leases | Supplemental balance sheet information related to leases was as follows: Operating Leases (in thousands) December 31, 2019 Other non-current assets $ 12,858 Accrued liabilities 3,972 Other long-term liabilities 8,989 Total operating lease liabilities $ 12,961 Finance Leases (in thousands) December 31, 2019 Property, plant and equipment, gross $ 524 Accumulated Depreciation (265) Property, plant and equipment, net $ 259 Current maturities of long-term debt and finance lease obligations $ 90 Long-term debt and finance lease obligations, net of current maturities 174 Total finance lease liabilities $ 264 Weighted Average Remaining Lease Term Operating leases 5.10 years Finance leases 3.47 years Weighted Average Discount Rate Operating leases 3.29 % Finance leases 3.39 % |
Supplemental Cash Flow Information Related to Leases | Supplemental Cash Flow information related to leases was as follows: Twelve Months Ended December 31, (in thousands) 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from finance leases $ 10 Operating cash flows from operating leases 4,507 Financing cash flows from finance leases 122 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Liabilities | Accrued liabilities consist of the following balances: December 31, (in thousands) 2019 2018 Salaries, wages and bonuses $ 28,296 $ 22,598 Taxes 5,130 6,621 Warranty 10,249 4,992 Retirement Provision 2,795 2,646 Customer Deposits 2,430 2,520 Other 10,786 4,408 Accrued Liabilities $ 59,686 $ 43,785 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Components of Long-Term Debt | The components of long-term debt are as follows: December 31, (in thousands) 2019 2018 Bank revolving credit facility $ 145,000 $ 85,000 Term debt 298,717 — Capital lease obligations 264 298 Total debt 443,981 85,298 Less current maturities 18,840 119 Total long-term debt $ 425,141 $ 85,179 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax, Domestic and Foreign | The jurisdictional components of income before taxes consist of the following: December 31, (in thousands) 2019 2018 2017 Income before income taxes: Domestic $ 54,566 $ 66,858 $ 61,329 Foreign 29,769 27,673 21,038 $ 84,335 $ 94,531 $ 82,367 |
Schedule of Components of Income Tax Expense (Benefit) | The components of income tax expense (benefit) consist of the following: December 31, (in thousands) 2019 2018 2017 Current: Domestic $ 6,403 $ 6,771 $ 26,713 Foreign 8,419 7,391 6,222 State 3,291 4,831 3,789 18,113 18,993 36,724 Deferred: Domestic 3,800 2,542 1,711 Foreign (280) (390) (155) State (204) (100) (228) 3,316 2,052 1,328 Total income taxes $ 21,429 $ 21,045 $ 38,052 |
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 21% in 2019 and 2018 and 35% in 2017 to income before income taxes consists of the following: December 31, (in thousands) 2019 2018 2017 Income tax expense at statutory rates $ 17,710 $ 19,851 $ 28,828 Increase (reduction) from: Jurisdictional rate differences 988 719 (1,863) Valuation allowance 460 (267) 308 Stock based compensation (358) (205) (778) U.S. state taxes 3,125 3,917 2,463 Domestic production deduction — — (1,039) R&D credit (699) (531) (500) GILTI 872 673 — Previously unrecognized tax benefit (1,504) — — Other, net 835 219 397 Provision for income taxes before tax reform $ 21,429 $ 24,376 $ 27,816 Effective tax rate before effects of tax reform 25 % 26 % 34 % Tax Reform: Rate change of deferreds — 1,200 (3,334) Transition tax on deemed repatriation — (4,531) 13,104 Other — — 466 Impact of tax reform $ — $ (3,331) $ 10,236 Provision for income tax $ 21,429 $ 21,045 $ 38,052 Effective tax rate 25 % 22 % 46 % |
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) 2019 2018 Deferred income tax assets: Inventory basis difference $ 4,351 $ 1,825 Accounts receivable reserve 384 251 Rental equipment and Property, plant and equipment 73 56 Stock based compensation 391 672 Pension liability 2,874 3,204 Employee benefit accrual 1,669 1,911 Product liability and warranty reserves 2,526 1,294 Foreign net operating loss 4,485 4,164 Lease liability 3,046 — State net operating loss 148 148 Other 190 (156) Total deferred income tax assets $ 20,137 $ 13,369 Less: Valuation allowance (4,156) (3,696) Net deferred income tax assets $ 15,981 $ 9,673 Deferred income tax liabilities: Inventory basis differences $ (122) $ — Rental equipment and Property, plant and equipment (17,327) (9,928) Lease asset (3,022) — Intangible assets (18,897) (8,944) Expenses not currently deductible for book purposes (1,996) (749) Total deferred income tax liabilities $ (41,364) $ (19,621) Net deferred income taxes $ (25,383) $ (9,948) |
Schedule of Unrecognized Tax Benefits Roll Forward | We do not expect our unrecognized tax benefits disclosed above to change significantly over the next 12 months. Unrecognized Tax Benefits December 31, 2019 2018 Balance as of beginning of year $ 236,000 $ 234,000 Increases for tax positions related to the current year 88,000 63,000 Increases in tax positions taken related to liabilities assumed in acquisitions 2,219,000 — Decreases in tax positions taken related to liabilities assumed in acquisitions (1,504,000) — Decreases as a result of settlements with taxing authorities related to liabilities assumed in acquisitions (715,000) — Decreases due to lapse of statute of limitations (62,000) (61,000) Balance as of end of year $ 262,000 $ 236,000 |
Stock Options (Tables)
Stock Options (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Share-based Compensation, Stock Options, Activity | 2019 (1) 2018 (2) 2017 (2) Options available for grant at end of year 499,640 146,075 176,294 1. In 2019, options available are from the 2019 Equity Incentive Plan. 2. In 2018 and 2017, options available are from the 2009 Equity Incentive Plan. |
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity | Following is a summary of activity in the Restricted Stock Awards for the periods indicated: 2019 2018 2017 Shares Grant-Date Fair Value* Shares Grant-Date Fair Value* Shares Grant-Date Fair Value* Awards outstanding at beginning of year 75,636 $ 81.39 63,052 $ 70.08 45,621 $ 54.58 Granted 36,060 105.69 35,300 92.50 33,620 84.34 Exercised (32,466) 69.94 (22,266) 66.91 (16,189) 56.03 Canceled (525) 99.96 (450) 83.99 — — Awards outstanding at end of year 78,705 94.34 75,636 81.39 63,052 70.08 *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: 2019 2018 2017 Shares Exercise Price* Shares Exercise Price* Shares Exercise Price* Options outstanding at beginning of year 140,170 $ 49.78 172,875 $ 43.91 220,820 $ 37.39 Granted 12,150 105.56 9,500 92.50 10,750 83.99 Exercised (28,100) 38.93 (41,205) 34.89 (54,945) 24.83 Canceled (4,500) 58.57 (1,000) 54.49 (3,750) 54.57 Options outstanding at end of year 119,720 57.65 140,170 49.78 172,875 43.91 Options exercisable at end of year 85,070 $ 47.10 96,320 $ 41.56 111,875 $ 36.44 Options available for grant at end of year 327,250 336,450 344,950 *Weighted Averages |
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range | Options outstanding and exercisable at December 31, 2019 were as follows: Qualified Stock Options Options Outstanding Options Exercisable Shares Remaining Contractual Life (yrs)* Exercise Price* Shares Exercise Price* Range of Exercise Price $26.45 - $42.70 39,820 2.57 $ 35.89 39,820 $ 35.89 $49.44 - $83.99 59,800 5.60 $ 57.89 43,600 $ 55.62 $92.50 - $105.56 20,100 8.94 $ 100.07 1,650 $ 92.50 Total 119,720 85,070 *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: 2019 2018 2017 Shares Exercise Price* Shares Exercise Price* Shares Exercise Price* Options outstanding at beginning of year 40,200 $ 42.99 67,000 $ 42.43 112,400 $ 34.48 Granted — — — — — — Exercised (34,900) 42.40 (26,800) 41.61 (45,400) 22.73 Canceled — — — — — — Options outstanding at end of year 5,300 46.87 40,200 42.99 67,000 42.43 Options exercisable at end of year 5,300 $ 46.87 34,400 $ 41.21 50,400 $ 39.86 *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, 2019 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 $26.45 - $42.70 1,300 1.36 26.45 1,300 26.45 $49.44 - $83.99 4,000 4.37 $ 53.51 4,000 $ 53.51 Total 5,300 5,300 *Weighted Averages |
Retirement Benefit Plans (Table
Retirement Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of Defined Benefit Plans Disclosures | The following table sets 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 the plan. The measurement dates of the assets and liabilities of the plan were December 31 of the respective years presented. Reconciliation of Funded Status Year Ended December 31, (in thousands) 2019 2018 Change in projected benefit obligation Benefit obligation at beginning of year $ 20,050 $ 21,552 Service cost 3 4 Interest cost 819 757 Liability actuarial (gain) loss 2,604 (1,270) Benefits paid (1,027) (993) Benefit obligation at end of year 22,449 20,050 Change in fair value of plan assets Fair value of plan assets at beginning of year 18,106 20,327 Return on plan assets 3,526 (1,228) Employer contributions — — Benefits paid (1,027) (993) Fair value of plan assets at end of year 20,605 18,106 Funded status (1,844) $ (1,944) |
Schedule of Allocation of Plan Assets | The pension plans' weighted-average asset allocation as a percentage of plan assets at December 31 are as follows: Asset Allocation as a Percentage of the Plan Year Ended December 31, 2019 2018 Equity securities 56% 55% Debt securities 37% 38% Short-term investments 2% 2% Other 5% 5% Total 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 as described in Note 1 to the Consolidated Financial Statements: December 31, 2019 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 $ 2,239 $ 2,239 $ — $ — Large Cap 2,574 2,574 — — International 1,879 1,879 — — Common/Collective Trusts: Wells Fargo Liability Driven Solution 2,866 — 2,866 — Wells Fargo BlackRock International Equity 861 — 861 — Wells Fargo Core Bond 1,413 — 1,413 — Wells Fargo/Causeway International 864 — 864 — Wells Fargo BlackRock Large Cap Growth Index Fund 1,153 — 1,153 — Wells Fargo BlackRock Large Cap Value Index Fund 1,159 — 1,159 — Wells Fargo Multi-Manager Small Cap 1,434 — 1,434 — Wells Fargo BlackRock Russell 2000 Index Fund 667 — 667 — Wells Fargo BlackRock S&P Mid Cap Index Fund 732 — 732 — Wells Fargo/MFS Value CIT F 599 — 599 — Wells Fargo/T. Rowe Price Large-Cap Growth Managed CIT 602 — 602 — Wells Fargo/T. Rowe Price Equity Income 590 — 590 — Wells Fargo Voya Large Cap Growth CIT F 605 — 605 — Cash & Short-term Investments 368 368 — — Total $ 20,605 $ 7,060 $ 13,545 $ — December 31, 2018 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 $ 1,176 $ 1,176 $ — $ — Large Cap 2,618 2,618 — — International 2,051 2,051 — — Common/Collective Trusts: Wells Fargo Liability Driven Solution 2,532 — 2,532 — Wells Fargo BlackRock International Equity 765 — 765 — Wells Fargo Core Bond 1,266 — 1,266 — Wells Fargo/Causeway International 766 — 766 — Wells Fargo BlackRock Large Cap Growth Index Fund 1,026 — 1,026 — Wells Fargo BlackRock Large Cap Value Index Fund 1,025 — 1,025 — Wells Fargo Multi-Manager Small Cap 1,246 — 1,246 — Wells Fargo BlackRock Russell 2000 Index Fund 573 — 573 — Wells Fargo BlackRock S&P Mid Cap Index Fund 641 — 641 — Wells Fargo/MFS Value CIT F 516 — 516 — Wells Fargo/T. Rowe Price Large-Cap Growth Managed CIT 516 — 516 — T. Rowe Price Equity Income 515 — 515 — Wells Fargo Voya Large Cap Growth CIT F 516 — 516 — Cash & Short-term Investments 358 358 — — Total $ 18,106 $ 6,203 $ 11,903 $ — |
Schedule of Changes in Projected Benefit Obligations | The change in the Projected Benefit Obligation (PBO) as of December 31, 2019 and 2018, is shown below: Reconciliation of Benefit Obligation Year Ended December 31, (in thousands) 2019 2018 Benefit obligation at January 1, $ 7,446 $ 5,945 Service cost 240 249 Interest cost 298 248 Liability actuarial loss (gain) 1,193 (328) Benefits paid (155) (98) Plan amendments — 1,430 Benefit obligation at December 31, $ 9,022 $ 7,446 |
Pension Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of Assumptions Used | In determining the projected benefit obligation and the net pension cost, we used the following significant weighted-average assumptions: Rates to Determine Benefit Obligation Year Ended December 31, 2019 2018 Discount rate 3.15% 4.20% Composite rate of compensation increase N/A N/A Rates to Determine Net Periodic Benefit Cost Year Ended December 31, 2019 2018 Discount rate 4.20% 3.60% Long-term rate of return on plan assets 7.25% 7.25% Composite rate of compensation increase N/A N/A |
Schedule of Net Periodic Benefit Cost | The following table presents the components of net periodic benefit cost (gains are denoted with parentheses and losses are not): Components of Net Periodic Benefit Cost Year Ended December 31, (in thousands) 2019 2018 Service cost $ 3 $ 4 Interest cost 819 757 Expected return on plan assets (1,273) (1,454) Amortization of net loss 542 346 Net periodic benefit cost $ 91 $ (347) |
Schedule of Expected Benefit Payments | The following table illustrates the estimated pension benefit payments that are projected to be paid: Projected Future Benefit Payments (in thousands) Employees’ Retirement Plan 2020 $ 1,152 2021 1,237 2022 1,267 2023 1,286 2024 1,294 Years 2025 through 2029 6,407 |
Supplemental Employee Retirement Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of Assumptions Used | 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: Rates to Determine Benefit Obligation 2019 2018 Discount rate 2.95% 4.10% Composite rate of compensation increase 3.00% 3.00% Assumptions used to determine net periodic benefit cost for the years ended December 31: Rates to Determine Net Periodic Benefit Cost 2019 2018 Discount rate 4.10% 3.45% Composite rate of compensation increase 3.00% 3.00% Long-term rate of return on plan assets N/A N/A |
Schedule of Net Periodic Benefit Cost | The components of net periodic pension expense were as follows: Components of Net Periodic Benefit Cost Year Ended December 31, (in thousands) 2019 2018 Service cost $ 240 $ 249 Interest cost 298 248 Amortization of prior service cost 318 501 Net periodic benefit cost $ 856 $ 998 |
Schedule of Expected Benefit Payments | Future estimated benefits expected to be paid from the plan over the next ten years as follows: Projected Future Benefit Payments (in thousands) SERP 2020 $ 1,205 2021 350 2022 450 2023 453 2024 480 Years 2025 through 2029 3,258 |
Revenue and Segment Reporting (
Revenue and Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Disaggregation of Revenue | Management has determined that this level of disaggregation would be beneficial to users of the financial statements. Revenue by Product Type December 31, (in thousands) 2019 2018 2017 Net Sales Wholegoods $ 875,805 $ 802,403 $ 714,862 Parts 207,766 186,979 182,412 Other 35,567 19,440 15,106 Consolidated $ 1,119,138 $ 1,008,822 $ 912,380 |
Schedule of Segment Reporting Information, by Segment | The following table presents the revenue and income from operations by reporting segment for the years ended December 31, 2019, 2018, and 2017: December 31, (in thousands) 2019 2018 2017 Net Revenue Industrial $ 768,454 $ 638,198 $ 563,599 Agricultural 350,684 370,624 348,781 Consolidated $ 1,119,138 $ 1,008,822 $ 912,380 Income from Operations Industrial $ 65,262 $ 65,077 $ 55,752 Agricultural 29,386 36,011 32,986 Consolidated $ 94,648 $ 101,088 $ 88,738 The following table presents the goodwill and total identifiable assets by reporting segment for the years ended December 31, 2019 and 2018: December 31, (in thousands) 2019 2018 Goodwill Industrial $ 183,307 $ 68,672 Agricultural 14,715 14,571 Consolidated $ 198,022 $ 83,243 Identifiable Assets Industrial $ 922,738 $ 440,729 Agricultural 290,025 280,904 Consolidated $ 1,212,763 $ 721,633 |
International Operations and _2
International Operations and Geographic Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule of International Operations | Following is selected financial information on the Company’s international operations, which include Europe, Canada and Australia: International Operations Financial Information December 31, (in thousands) 2019 2018 2017 Net sales $ 357,602 $ 297,246 $ 254,144 Income from operations 32,518 28,301 23,110 Income before income taxes 31,975 29,254 22,476 Identifiable assets 333,392 244,888 227,758 |
Schedule of Selected Geographic Financial Information | Following is other selected geographic financial information on the Company’s operations: Geographic Financial Information December 31, (in thousands) 2019 2018 2017 Geographic net sales: United States $ 774,854 $ 726,582 $ 663,600 France 99,145 90,956 86,443 Canada 72,950 62,077 52,332 United Kingdom 52,098 51,043 44,416 Brazil 17,919 16,829 9,321 Netherlands 23,462 3,983 4,312 China 16,384 9,479 2,071 Germany 7,825 1,600 2,811 Australia 7,550 9,055 12,778 Other 46,951 37,218 34,296 Total net sales $ 1,119,138 $ 1,008,822 $ 912,380 Geographic location of long-lived assets: United States $ 515,189 $ 191,958 $ 171,048 Netherlands 37,930 — — Canada 32,606 21,647 24,302 United Kingdom 19,840 19,270 18,948 France 19,513 18,650 19,324 Brazil 15,096 15,701 11,558 Australia 1,021 815 917 Total long-lived assets $ 641,195 $ 268,041 $ 246,097 |
Quarterly Financial Data (Una_2
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | Summarized quarterly financial data for 2019 and 2018 are presented below. Seasonal influences affect the Company’s sales and profits, with heavier business occurring in May through August. (in thousands, except per share amounts) 2019 2018 First Second Third Fourth First Second Third Fourth Sales $ 261,934 $ 285,186 $ 271,829 $ 300,189 $ 238,087 $ 257,125 $ 257,572 $ 256,038 Gross profit 63,308 73,133 68,710 68,076 60,257 66,454 66,772 62,632 Net income 15,253 20,667 17,418 9,568 14,583 18,771 23,543 16,589 Earnings per share Diluted $ 1.30 $ 1.75 $ 1.47 $ 0.81 $ 1.24 $ 1.60 $ 2.00 $ 1.41 Average shares Diluted 11,777 11,798 11,813 11,811 11,739 11,759 11,777 11,768 Dividends per share $ 0.12 $ 0.12 $ 0.12 $ 0.12 $ 0.11 $ 0.11 $ 0.11 $ 0.11 Market price of common stock High $ 101.58 $ 106.19 $ 124.33 $ 129.74 $ 120.22 $ 118.93 $ 102.29 $ 93.45 Low $ 74.74 $ 93.00 $ 93.11 $ 103.60 $ 103.38 $ 88.60 $ 88.13 $ 72.85 |
Significant Accounting Polici_4
Significant Accounting Policies (Narrative) (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Dec. 31, 2019USD ($)segment | Sep. 30, 2019segment | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Accounting Policies [Line Items] | |||||
Number of principal reporting segments | segment | 2 | 3 | |||
Restricted cash | $ 0 | $ 0 | $ 0 | ||
Accumulated depreciation relating to rental equipment | 131,905,000 | ||||
Options | |||||
Accounting Policies [Line Items] | |||||
Award vesting period (years) | 5 years | ||||
Minimum | |||||
Accounting Policies [Line Items] | |||||
Estimated useful lives | 3 years | ||||
Maximum | |||||
Accounting Policies [Line Items] | |||||
Estimated useful lives | 25 years | ||||
Option term (years) | 10 years | ||||
Rental Equipment | |||||
Accounting Policies [Line Items] | |||||
Accumulated depreciation relating to rental equipment | $ 14,587,000 | $ 14,587,000 | 11,145,000 | ||
Selling, General and Administrative expenses | |||||
Accounting Policies [Line Items] | |||||
Advertising expense | 12,177,000 | 11,773,000 | $ 9,566,000 | ||
Product development and engineering costs | $ 11,984,000 | $ 10,429,000 | $ 9,849,000 |
Significant Accounting Polici_5
Significant Accounting Policies (Schedule of Fair Value Assumptions and Methodology) (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accounting Policies [Abstract] | |||
Risk-free interest rate | 2.43% | 2.94% | 2.23% |
Dividend yield | 0.50% | 0.50% | 0.50% |
Volatility factors | 31.20% | 34.50% | 37.60% |
Weighted-average expected life | 8 years | 8 years | 8 years |
Accounting Pronouncements (Deta
Accounting Pronouncements (Details) - Accounting Standards Update 2016-02 $ in Thousands | Jan. 01, 2019USD ($) |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Right-of-use asset recognized | $ 7,747 |
Lease liability recognized | $ 7,868 |
Business Combinations - Additio
Business Combinations - Additional Information (Details) - USD ($) | Oct. 24, 2019 | Mar. 04, 2019 | Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Oct. 23, 2019 |
Business Acquisition [Line Items] | ||||||||
Borrowings on bank revolving credit facility | $ 217,000,000 | $ 159,000,000 | $ 143,000,000 | |||||
Line of Credit | Amended and Restated Revolving Credit Agreement | Bank revolving credit facility | ||||||||
Business Acquisition [Line Items] | ||||||||
Aggregate commitments | $ 650,000,000 | $ 250,000,000 | ||||||
Credit facility, term | 5 years | |||||||
Borrowings on bank revolving credit facility | $ 355,000,000 | |||||||
Term debt | Amended and Restated Revolving Credit Agreement | Bank revolving credit facility | ||||||||
Business Acquisition [Line Items] | ||||||||
Aggregate commitments | 300,000,000 | |||||||
Revolving Credit Facility | Amended and Restated Revolving Credit Agreement | Bank revolving credit facility | ||||||||
Business Acquisition [Line Items] | ||||||||
Aggregate commitments | $ 350,000,000 | |||||||
Dutch Power | ||||||||
Business Acquisition [Line Items] | ||||||||
Percentage of outstanding capital shares acquired | 100.00% | |||||||
Total Consideration | $ 53,000,000 | |||||||
Goodwill resulted from allocation | 12,097,000 | |||||||
Goodwill, tax deductible | $ 0 | |||||||
Net sales | $ 36,400,000 | |||||||
Net income (loss) | $ 100,000 | |||||||
Morbark | ||||||||
Business Acquisition [Line Items] | ||||||||
Percentage of outstanding capital shares acquired | 100.00% | |||||||
Total Consideration | $ 354,312,000 | |||||||
Goodwill resulted from allocation | 102,662,000 | |||||||
Goodwill, tax deductible | $ 73,963,000 | |||||||
Net sales | $ 35,100,000 | |||||||
Net income (loss) | $ (1,500,000) |
Business Combinations - Schedul
Business Combinations - Schedule of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Oct. 24, 2019 | Mar. 04, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Business Acquisition [Line Items] | ||||||
Goodwill | $ 198,022 | $ 83,243 | $ 84,761 | $ 74,825 | ||
Dutch Power | ||||||
Business Acquisition [Line Items] | ||||||
Cash | $ 87 | |||||
Accounts receivable | 6,278 | |||||
Inventory | 17,731 | |||||
Prepaid and other assets | 1,451 | |||||
Property, plant and equipment | 13,439 | |||||
Intangible assets | 14,095 | |||||
Deferred tax liability | (4,265) | |||||
Other liabilities assumed | (8,302) | |||||
Net assets assumed | 40,514 | |||||
Goodwill | 12,097 | |||||
Acquisition Price | 52,611 | |||||
Total Consideration | $ 53,000 | |||||
Morbark | ||||||
Business Acquisition [Line Items] | ||||||
Accounts receivable | $ 13,966 | |||||
Inventory | 72,972 | |||||
Prepaid and other assets | 5,180 | |||||
Rental Equipment | 1,133 | |||||
Property, plant and equipment | 44,552 | |||||
Intangible assets | 149,015 | |||||
Deferred tax liability | (7,628) | |||||
Other liabilities assumed | (32,275) | |||||
Net assets assumed | 246,915 | |||||
Goodwill | 102,662 | |||||
Acquisition Price | 349,577 | |||||
Plus: Cash | 4,735 | |||||
Total Consideration | $ 354,312 |
Business Combinations - Sched_2
Business Combinations - Schedule of Business Acquisition, Pro Forma Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Text Block [Abstract] | ||
Net sales | $ 1,329,901,000 | $ 1,214,285,000 |
Net income | $ 69,417,000 | $ 56,697,000 |
Diluted earnings per share (in dollars per share) | $ 5.88 | $ 4.82 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |||||||||||
Net income | $ 9,568 | $ 17,418 | $ 20,667 | $ 15,253 | $ 16,589 | $ 23,543 | $ 18,771 | $ 14,583 | $ 62,906 | $ 73,486 | $ 44,315 |
Average common shares: | |||||||||||
Basic (weighted-average outstanding shares) (in shares) | 11,729,000 | 11,660,000 | 11,549,000 | ||||||||
Dilutive potential common shares from stock options (in shares) | 71,000 | 101,000 | 133,000 | ||||||||
Diluted (weighted-average outstanding shares) (in shares) | 11,811,000 | 11,813,000 | 11,798,000 | 11,777,000 | 11,768,000 | 11,777,000 | 11,759,000 | 11,739,000 | 11,800,000 | 11,761,000 | 11,682,000 |
Basic earnings per share (in dollars per share) | $ 5.36 | $ 6.30 | $ 3.84 | ||||||||
Diluted earnings per share (in dollars per share) | $ 0.81 | $ 1.47 | $ 1.75 | $ 1.30 | $ 1.41 | $ 2 | $ 1.60 | $ 1.24 | $ 5.33 | $ 6.25 | $ 3.79 |
Stock options excluded from diluted earnings per share calculation (in shares) | 4,244 | 4,850 | 1,565 |
Valuation and Qualifying Acco_3
Valuation and Qualifying Accounts (Schedule of Valuation and Qualifying Accounts) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reserve for sales discounts | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance Beginning of Year | $ 18,123 | $ 15,652 | $ 13,488 |
Net Charged to Costs and Expenses | 91,962 | 91,082 | 82,724 |
Translations, Reclassifications and Acquisitions | 39 | (48) | 166 |
Net Write-Offs or Discounts Taken | (93,241) | (88,563) | (80,726) |
Balance End of Year | 16,883 | 18,123 | 15,652 |
Reserve for inventory obsolescence | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance Beginning of Year | 7,194 | 6,932 | 7,262 |
Net Charged to Costs and Expenses | 5,711 | 3,773 | 3,007 |
Translations, Reclassifications and Acquisitions | 6,467 | (116) | 886 |
Net Write-Offs or Discounts Taken | (11,139) | (3,395) | (4,223) |
Balance End of Year | 8,233 | 7,194 | 6,932 |
Reserve for warranty | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance Beginning of Year | 4,992 | 5,335 | 5,262 |
Net Charged to Costs and Expenses | 8,273 | 5,815 | 7,224 |
Translations, Reclassifications and Acquisitions | 4,343 | (144) | 567 |
Net Write-Offs or Discounts Taken | (7,359) | (6,014) | (7,718) |
Balance End of Year | $ 10,249 | $ 4,992 | $ 5,335 |
Valuation and Qualifying Acco_4
Valuation and Qualifying Accounts (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Inventory obsolescence reserves | $ 8,233 | $ 7,194 | ||
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 | $ 10,249 | 4,992 | ||
Parts | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Product warranty period | 90 days | |||
Minimum | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Product warranty accrual lag period | 90 days | |||
Maximum | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Product warranty accrual lag period | 6 months | |||
Maximum | Wholegoods | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Product warranty period | 1 year | |||
Reserve for sales discounts | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Reserves for sales discounts on products shipped under promotional programs | $ 16,883 | $ 18,123 | $ 15,652 | $ 13,488 |
Inventories (Narrative) (Detail
Inventories (Narrative) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Percentage of LIFO inventory | 42.00% | 60.00% |
Excess of current costs over stated LIFO value | $ 10,910 | $ 10,646 |
Inventories (Schedule of Invent
Inventories (Schedule of Inventory, Current) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Finished goods and parts | $ 227,823 | $ 149,298 |
Work in process | 21,918 | 12,732 |
Raw materials | 17,933 | 14,600 |
Inventory, net | $ 267,674 | $ 176,630 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, at cost | $ 302,113 | |
Property, plant and equipment, at cost | $ 219,135 | |
Accumulated depreciation | (141,388) | |
Accumulated depreciation | (131,905) | |
Total property, plant and equipment, net | 160,725 | |
Total property, plant and equipment, net | 87,230 | |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, at cost | 13,876 | |
Property, plant and equipment, at cost | 11,970 | |
Buildings and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, at cost | $ 135,474 | |
Property, plant and equipment, at cost | 90,065 | |
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, at cost | $ 121,870 | |
Property, plant and equipment, at cost | 88,806 | |
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, at cost | $ 10,749 | |
Property, plant and equipment, at cost | 10,290 | |
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, at cost | $ 12,665 | |
Property, plant and equipment, at cost | 11,410 | |
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, at cost | $ 7,479 | |
Property, plant and equipment, at cost | $ 6,594 | |
Useful Lives | 3 years |
Goodwill (Details)
Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Goodwill [Roll Forward] | |||
Goodwill, balance at the beginning of the period | $ 83,243 | $ 84,761 | $ 74,825 |
Translation adjustment | 20 | (2,376) | 2,195 |
Goodwill acquired | 114,759 | 858 | 7,741 |
Goodwill, balance at the end of the period | 198,022 | 83,243 | 84,761 |
Industrial | |||
Goodwill [Roll Forward] | |||
Goodwill, balance at the beginning of the period | 68,672 | 69,504 | 63,152 |
Translation adjustment | (124) | (916) | 1,506 |
Goodwill acquired | 114,759 | 84 | 4,846 |
Goodwill, balance at the end of the period | 183,307 | 68,672 | 69,504 |
Agricultural | |||
Goodwill [Roll Forward] | |||
Goodwill, balance at the beginning of the period | 14,571 | 15,257 | 11,673 |
Translation adjustment | 144 | (1,460) | 689 |
Goodwill acquired | 0 | 774 | 2,895 |
Goodwill, balance at the end of the period | $ 14,715 | $ 14,571 | $ 15,257 |
Definite- and Indefinite-Live_3
Definite- and Indefinite-Lived Intangible Assets (Schedule of Definite and Indefinite Lived Intangible Assets) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Schedule of Acquired Indefinite-lived and Finite Intangible Assets by Major Class [Line Items] | ||
Definite | $ 221,415 | $ 58,259 |
Less accumulated amortization | (20,643) | (14,902) |
Total net | 200,772 | 43,357 |
Total Intangible Assets | 206,272 | 48,857 |
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] | ||
Definite | 67,222 | 23,938 |
Less accumulated amortization | (5,634) | |
Total net | 61,588 | |
Customer and dealer relationships | ||
Schedule of Acquired Indefinite-lived and Finite Intangible Assets by Major Class [Line Items] | ||
Definite | 121,508 | 32,260 |
Less accumulated amortization | (13,485) | |
Total net | 108,023 | |
Patents and developed technologies | ||
Schedule of Acquired Indefinite-lived and Finite Intangible Assets by Major Class [Line Items] | ||
Definite | 28,485 | 2,061 |
Less accumulated amortization | (1,524) | |
Total net | $ 26,961 | |
Favorable leasehold interests | ||
Schedule of Acquired Indefinite-lived and Finite Intangible Assets by Major Class [Line Items] | ||
Estimated Useful Lives | 7 years | |
Definite | $ 4,200 | $ 0 |
Less accumulated amortization | 0 | |
Total net | $ 4,200 | |
Minimum | ||
Schedule of Acquired Indefinite-lived and Finite Intangible Assets by Major Class [Line Items] | ||
Estimated Useful Lives | 3 years | |
Minimum | Trade names and trademarks | ||
Schedule of Acquired Indefinite-lived and Finite Intangible Assets by Major Class [Line Items] | ||
Estimated Useful Lives | 15 years | |
Minimum | Customer and dealer relationships | ||
Schedule of Acquired Indefinite-lived and Finite Intangible Assets by Major Class [Line Items] | ||
Estimated Useful Lives | 8 years | |
Minimum | Patents and developed technologies | ||
Schedule of Acquired Indefinite-lived and Finite Intangible Assets by Major Class [Line Items] | ||
Estimated Useful Lives | 3 years | |
Maximum | ||
Schedule of Acquired Indefinite-lived and Finite Intangible Assets by Major Class [Line Items] | ||
Estimated Useful Lives | 25 years | |
Maximum | Trade names and trademarks | ||
Schedule of Acquired Indefinite-lived and Finite Intangible Assets by Major Class [Line Items] | ||
Estimated Useful Lives | 25 years | |
Maximum | Customer and dealer relationships | ||
Schedule of Acquired Indefinite-lived and Finite Intangible Assets by Major Class [Line Items] | ||
Estimated Useful Lives | 15 years | |
Maximum | Patents and developed technologies | ||
Schedule of Acquired Indefinite-lived and Finite Intangible Assets by Major Class [Line Items] | ||
Estimated Useful Lives | 12 years |
Definite- and Indefinite-Live_4
Definite- and Indefinite-Lived Intangible Assets (Narrative) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Schedule of Acquired Indefinite-lived and Finite Intangible Assets by Major Class [Line Items] | ||
Net carrying value of intangibles with definite useful lives | $ 200,772 | $ 43,357 |
Accumulated amortization | 20,643 | $ 14,902 |
2020 | 14,500 | |
2021 | 14,500 | |
2022 | 14,500 | |
2023 | 14,500 | |
2024 | 14,500 | |
Trade Names | Gradall | ||
Schedule of Acquired Indefinite-lived and Finite Intangible Assets by Major Class [Line Items] | ||
Carrying values of indefinite lived trade names | 3,600 | |
Trade Names | Bush Hog | ||
Schedule of Acquired Indefinite-lived and Finite Intangible Assets by Major Class [Line Items] | ||
Carrying values of indefinite lived trade names | 1,900 | |
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 | 61,588 | |
Accumulated amortization | 5,634 | |
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 | 108,023 | |
Accumulated amortization | 13,485 | |
Patents and developed technologies | ||
Schedule of Acquired Indefinite-lived and Finite Intangible Assets by Major Class [Line Items] | ||
Net carrying value of intangibles with definite useful lives | 26,961 | |
Accumulated amortization | 1,524 | |
Favorable leasehold interests | ||
Schedule of Acquired Indefinite-lived and Finite Intangible Assets by Major Class [Line Items] | ||
Net carrying value of intangibles with definite useful lives | 4,200 | |
Accumulated amortization | $ 0 |
Leases - Lease Cost (Details)
Leases - Lease Cost (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Leases [Abstract] | |
Amortization of right-of-use assets | $ 125 |
Interest on lease liabilities | 10 |
Operating lease cost | 4,457 |
Short-term lease cost | 594 |
Variable lease cost | 464 |
Total lease cost | $ 5,650 |
Leases - Maturity Schedule (Det
Leases - Maturity Schedule (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Operating Lease | ||
2020 | $ 4,305 | |
2021 | 2,718 | |
2022 | 2,051 | |
2023 | 1,459 | |
2024 | 941 | |
Thereafter | 2,587 | |
Total minimum lease payments | 14,061 | |
Less imputed interest | (1,100) | |
Total lease liabilities | 12,961 | |
Finance Lease | ||
2020 | 97 | |
2021 | 83 | |
2022 | 45 | |
2023 | 22 | |
2024 | 19 | |
Thereafter | 14 | |
Total minimum lease payments | 280 | |
Less imputed interest | (16) | |
Total lease liabilities | $ 264 | |
Operating Leases | ||
2019 | $ 3,310 | |
2020 | 2,453 | |
2021 | 1,308 | |
2022 | 743 | |
2023 | 419 | |
Thereafter | 79 | |
Total minimum lease payments | 8,312 | |
Finance Leases | ||
2019 | 125 | |
2020 | 97 | |
2021 | 62 | |
2022 | 24 | |
2023 | 1 | |
Thereafter | 0 | |
Total minimum lease payments | 309 | |
Less imputed interest | (11) | |
Total lease liabilities | $ 298 |
Leases - Additional Information
Leases - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Leases [Abstract] | |||
Operating lease expense | $ 5,515 | ||
Rental expense for operating leases | $ 5,087 | $ 4,788 | |
Additional operating lease not yet commenced | $ 116 |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Lessee, Operating Lease, Description [Abstract] | |
Other non-current assets | $ 12,858 |
Accrued liabilities | 3,972 |
Other long-term liabilities | 8,989 |
Total operating lease liabilities | 12,961 |
Lessee, Finance Lease, Description [Abstract] | |
Property, plant and equipment, gross | 524 |
Accumulated Depreciation | (265) |
Property, plant and equipment, net | 259 |
Current maturities of long-term debt and finance lease obligations | 90 |
Long-term debt and finance lease obligations, net of current maturities | 174 |
Total finance lease liabilities | $ 264 |
Operating leases, weighted average remaining lease term | 5 years 1 month 6 days |
Finance leases, weighted average remaining lease term | 3 years 5 months 19 days |
Operating leases, weighted average remaining discount rate | 3.29% |
Finance leases, weighted average remaining discount rate | 3.39% |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating cash flows from finance leases | $ 10 |
Operating cash flows from operating leases | 4,507 |
Financing cash flows from finance leases | $ 122 |
Accrued Liabilities (Details)
Accrued Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Payables and Accruals [Abstract] | ||
Salaries, wages and bonuses | $ 28,296 | $ 22,598 |
Taxes | 5,130 | 6,621 |
Warranty | 10,249 | 4,992 |
Retirement Provision | 2,795 | 2,646 |
Customer Deposits | 2,430 | 2,520 |
Other | 10,786 | 4,408 |
Accrued liabilities | $ 59,686 | $ 43,785 |
Long-Term Debt (Schedule of Lon
Long-Term Debt (Schedule of Long-Term Debt) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Total debt | $ 443,981 | $ 85,298 |
Less current maturities | 18,840 | 119 |
Total long-term debt | 425,141 | 85,179 |
Term debt | ||
Debt Instrument [Line Items] | ||
Total debt | 298,717 | 0 |
Finance lease liability | ||
Debt Instrument [Line Items] | ||
Total debt | 264 | |
Capital lease obligations | ||
Debt Instrument [Line Items] | ||
Total debt | 298 | |
Line of Credit | Bank revolving credit facility | ||
Debt Instrument [Line Items] | ||
Total debt | $ 145,000 | $ 85,000 |
Long-Term Debt (Narrative) (Det
Long-Term Debt (Narrative) (Details) - USD ($) | Oct. 24, 2019 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
2020 | $ 18,840,000 | |
2021 | 15,078,000 | |
2022 | 15,043,000 | |
2023 | 15,021,000 | |
2024 | 379,985,000 | |
Thereafter | 14,000 | |
the Credit Agreement | Line of Credit | Bank revolving credit facility | ||
Debt Instrument [Line Items] | ||
Aggregate commitments | $ 650,000,000 | |
Maximum amount of aggregate commitments | 200,000,000 | |
Fair value of amount outstanding | 443,717,000 | |
the Credit Agreement | Term Facility | Bank revolving credit facility | ||
Debt Instrument [Line Items] | ||
Aggregate commitments | $ 300,000,000 | |
Interest rate during period | 5.00% | |
Expiration period | 5 years | |
Fair value of amount outstanding | $ 298,717,000 | |
Interest rate at period end | 4.19% | |
the Credit Agreement | Standby Letters of Credit | Bank revolving credit facility | ||
Debt Instrument [Line Items] | ||
Aggregate commitments | $ 350,000,000 | |
Expiration period | 5 years | |
Fair value of amount outstanding | $ 145,000,000 | |
Interest rate at period end | 4.32% | |
Amount of capacity | $ 3,025,000 | |
Available borrowings | $ 201,975,000 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Operating Loss Carryforwards [Line Items] | ||
Increase in valuation allowance | $ 460 | |
Additional unrecognized tax benefit that would affect our annual effective tax rate | 262 | $ 236 |
Withholding taxes | 3,965 | |
Foreign | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carryforwards with unlimited carryforward period | 10,519 | |
Net operating loss carryforwards expiring in 2035 | 5,363 | |
State | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carryforwards | $ 4,602 |
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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ 54,566 | $ 66,858 | $ 61,329 |
Foreign | 29,769 | 27,673 | 21,038 |
Income before income taxes | $ 84,335 | $ 94,531 | $ 82,367 |
Income Taxes (Schedule of Compo
Income Taxes (Schedule of Components of Income Tax Expense (Benefit)) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Current: | |||
Domestic | $ 6,403 | $ 6,771 | $ 26,713 |
Foreign | 8,419 | 7,391 | 6,222 |
State | 3,291 | 4,831 | 3,789 |
Provision for current income tax expense (benefit) | 18,113 | 18,993 | 36,724 |
Deferred: | |||
Domestic | 3,800 | 2,542 | 1,711 |
Foreign | (280) | (390) | (155) |
State | (204) | (100) | (228) |
Provision for deferred income tax expense (benefit) | 3,316 | 2,052 | 1,328 |
Provision for income tax | $ 21,429 | $ 21,045 | $ 38,052 |
Income Taxes (Income Tax Reconc
Income Taxes (Income Tax Reconciliation) (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | ||||
Income tax expense at statutory rates | $ 17,710,000 | $ 19,851,000 | $ 28,828,000 | |
Increase (reduction) from: | ||||
Jurisdictional rate differences | 988,000 | 719,000 | (1,863,000) | |
Valuation allowance | 460,000 | (267,000) | 308,000 | |
Stock based compensation | (358,000) | (205,000) | (778,000) | |
U.S. state taxes | 3,125,000 | 3,917,000 | 2,463,000 | |
Domestic production deduction | 0 | 0 | (1,039,000) | |
R&D credit | (699,000) | (531,000) | (500,000) | |
GILTI | 872,000 | 673,000 | 0 | |
FIN 48 at acquisition | (1,504,000) | 0 | 0 | |
Other, net | 835,000 | 219,000 | 397,000 | |
Provision for income taxes before tax reform | $ 21,429,000 | $ 24,376,000 | 27,816,000 | |
Effective tax rate before effects of tax reform | 25.00% | 26.00% | 34.00% | |
Tax Reform: | ||||
Rate change of deferreds | $ 0 | $ 1,200,000 | (3,334,000) | |
Transition tax on deemed repatriation | 0 | (4,531,000) | 13,104,000 | |
Other | 0 | 0 | 466,000 | |
Impact of tax reform | 0 | (3,331,000) | 10,236,000 | |
Provision for income tax | $ 21,429,000 | $ 21,045,000 | $ 38,052,000 | |
Effective tax rate | 25.00% | 22.00% | 46.00% |
Income Taxes (Schedule of Defer
Income Taxes (Schedule of Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred income tax assets: | ||
Inventory basis difference | $ 4,351 | $ 1,825 |
Accounts receivable reserve | 384 | 251 |
Rental equipment and Property, plant and equipment | 73 | 56 |
Stock based compensation | 391 | 672 |
Pension liability | 2,874 | 3,204 |
Employee benefit accrual | 1,669 | 1,911 |
Product liability and warranty reserves | 2,526 | 1,294 |
Foreign net operating loss | 4,485 | 4,164 |
Lease liability | 3,046 | 0 |
State net operating loss | 148 | 148 |
Other | 190 | (156) |
Total deferred income tax assets | 20,137 | 13,369 |
Less: Valuation allowance | (4,156) | (3,696) |
Net deferred income tax assets | 15,981 | 9,673 |
Deferred income tax liabilities: | ||
Inventory basis differences | (122) | 0 |
Rental equipment and Property, plant and equipment | (17,327) | (9,928) |
Lease asset | (3,022) | 0 |
Intangible assets | (18,897) | (8,944) |
Expenses not currently deductible for tax purposes | (1,996) | (749) |
Total deferred income tax liabilities | (41,364) | (19,621) |
Net deferred income taxes | $ (25,383) | $ (9,948) |
Income Taxes (Schedule of Unrec
Income Taxes (Schedule of Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Balance as of beginning of year | $ 236 | $ 234 |
Increases for tax positions related to the current year | 88 | 63 |
Increases in tax positions taken related to liabilities assumed in acquisitions | 2,219 | 0 |
Decreases in tax positions taken related to liabilities assumed in acquisitions | (1,504) | 0 |
Decreases as a result of settlements with taxing authorities related to liabilities assumed in acquisitions | (715) | 0 |
Decreases due to lapse of statute of limitations | (62) | (61) |
Balance as of end of year | $ 262 | $ 236 |
Common Stock - Additional Infor
Common Stock - Additional Information (Details) - USD ($) | Jan. 29, 2020 | Jan. 02, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Class of Stock [Line Items] | |||||||||||||
Dividends per share (in dollars per share) | $ 0.12 | $ 0.12 | $ 0.12 | $ 0.12 | $ 0.11 | $ 0.11 | $ 0.11 | $ 0.11 | |||||
Dividends paid (in dollars per share) | $ 0.48 | $ 0.44 | $ 0.40 | ||||||||||
Common stock repurchased (in shares) | 40,000 | ||||||||||||
Subsequent Event | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Dividends per share (in dollars per share) | $ 0.13 | ||||||||||||
Dividends paid (in dollars per share) | $ 0.13 | ||||||||||||
Stock repurchase program, authorized amount | $ 30,000,000 |
Stock Options (Narrative) (Deta
Stock Options (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | May 07, 2015 | May 07, 2009 | |
Qualified Stock Options | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Weighted average grant date fair value of options granted (in dollars per share) | $ 39.85 | $ 38.77 | $ 36 | ||
Stock option expense | $ 451 | $ 482 | $ 597 | ||
Total unrecognized compensation cost related to non-vested share-based compensation arrangements | $ 755 | ||||
Period cost is expected to be recognized (years) | 5 years | ||||
Granted (in shares) | 12,150 | 9,500 | 10,750 | ||
Exercise of stock options (in shares) | 28,100 | 41,205 | 54,945 | ||
Non Qualified Options | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock option expense | $ 8 | $ 22 | $ 22 | ||
Total unrecognized compensation cost related to non-vested share-based compensation arrangements | $ 0 | ||||
Period cost is expected to be recognized (years) | 5 years | ||||
Granted (in shares) | 0 | 0 | 0 | ||
Exercise of stock options (in shares) | 34,900 | 26,800 | 45,400 | ||
Proceeds from stock options exercised | $ 1,480 | $ 1,115 | $ 1,032 | ||
Restricted Stock Units (RSUs) | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock option expense | 2,810 | $ 1,946 | $ 1,250 | ||
Total unrecognized compensation cost related to non-vested share-based compensation arrangements | $ 5,775 | ||||
Period cost is expected to be recognized (years) | 4 years | ||||
Weighted average remaining contractual life (years) | 2 years 5 months 23 days | 2 years 6 months 10 days | 2 years 8 months 8 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 (in shares) | 400,000 | ||||
2015 ISO Plan | Qualified Stock Options | Year One after Grant Date | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting period (years) | 1 year | ||||
2015 ISO Plan | Qualified Stock Options | Year One after Grant Date | Maximum | |||||
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 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% | ||||
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 (in shares) | 500,000 | ||||
2009 Equity Incentive Plan | Non Qualified Options | Year One after Grant Date | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting period (years) | 1 year | ||||
2009 Equity Incentive Plan | Non Qualified Options | Year One after Grant Date | Maximum | |||||
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 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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Shares | |||
Options outstanding at beginning of year (in shares) | 140,170 | 172,875 | 220,820 |
Granted (in shares) | 12,150 | 9,500 | 10,750 |
Exercised (in shares) | (28,100) | (41,205) | (54,945) |
Canceled (in shares) | (4,500) | (1,000) | (3,750) |
Options outstanding at end of year (in shares) | 119,720 | 140,170 | 172,875 |
Exercise Price | |||
Outstanding at beginning of year, exercise price (in dollars per share) | $ 49.78 | $ 43.91 | $ 37.39 |
Granted, exercise price (in dollars per share) | 105.56 | 92.50 | 83.99 |
Exercised, exercise price (in dollars per share) | 38.93 | 34.89 | 24.83 |
Canceled, exercise price (in dollars per share) | 58.57 | 54.49 | 54.57 |
Outstanding at end of year, exercise price (in dollars per share) | $ 57.65 | $ 49.78 | $ 43.91 |
Options exercisable at end of year (in shares) | 85,070 | 96,320 | 111,875 |
Exercisable at end of year, exercise price (in dollars per share) | $ 47.10 | $ 41.56 | $ 36.44 |
Options available for grant at end of year (in shares) | 327,250 | 336,450 | 344,950 |
Stock Options (Schedule of Qu_2
Stock Options (Schedule of Qualified Stock Options Outstanding and Exercisable) (Details) - Qualified Stock Options - $ / shares | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Options outstanding (in shares) | 119,720 | 140,170 | 172,875 | 220,820 |
Options exercisable (in shares) | 85,070 | 96,320 | 111,875 | |
$26.45 - $42.70 | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Range of exercise price, lower range limit (in dollars per share) | $ 26.45 | |||
Range of exercise price, upper range limit (in dollars per share) | $ 42.70 | |||
Options outstanding, exercise price range (in shares) | 39,820 | |||
Options outstanding, remaining contractual life | 2 years 6 months 25 days | |||
Options outstanding, exercise price (in dollars per share) | $ 35.89 | |||
Options exercisable, exercise price range (in shares) | 39,820 | |||
Options exercisable, exercise price (in dollars per share) | $ 35.89 | |||
$49.44 - $83.99 | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Range of exercise price, lower range limit (in dollars per share) | 49.44 | |||
Range of exercise price, upper range limit (in dollars per share) | $ 83.99 | |||
Options outstanding, exercise price range (in shares) | 59,800 | |||
Options outstanding, remaining contractual life | 5 years 7 months 6 days | |||
Options outstanding, exercise price (in dollars per share) | $ 57.89 | |||
Options exercisable, exercise price range (in shares) | 43,600 | |||
Options exercisable, exercise price (in dollars per share) | $ 55.62 | |||
$92.50 - $105.56 | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Range of exercise price, lower range limit (in dollars per share) | 92.50 | |||
Range of exercise price, upper range limit (in dollars per share) | $ 105.56 | |||
Options outstanding, exercise price range (in shares) | 20,100 | |||
Options outstanding, remaining contractual life | 8 years 11 months 8 days | |||
Options outstanding, exercise price (in dollars per share) | $ 100.07 | |||
Options exercisable, exercise price range (in shares) | 1,650 | |||
Options exercisable, exercise price (in dollars per share) | $ 92.50 |
Stock Options (Equity Incentive
Stock Options (Equity Incentive Plan) (Details) - shares | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Non Qualified Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options available for grant at end of year (in shares) | 499,640 | 146,075 | 176,294 |
Stock Options (Schedule of Non-
Stock Options (Schedule of Non-Qualified Stock Options Activity) (Details) - Non Qualified Options - $ / shares | 12 Months Ended | |||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Shares | ||||||
Options outstanding at beginning of year (in shares) | 40,200 | 67,000 | 112,400 | |||
Granted (in shares) | 0 | 0 | 0 | |||
Exercised (in shares) | (34,900) | (26,800) | (45,400) | |||
Canceled (in shares) | 0 | 0 | 0 | |||
Options outstanding at end of year (in shares) | 5,300 | 40,200 | 67,000 | |||
Exercise Price | ||||||
Outstanding at beginning of year, exercise price (in dollars per share) | $ 42.99 | $ 42.43 | $ 34.48 | |||
Granted, exercise price (in dollars per share) | 0 | 0 | 0 | |||
Exercised, exercise price (in dollars per share) | 42.40 | 41.61 | 22.73 | |||
Canceled, exercise price (in dollars per share) | 0 | 0 | 0 | |||
Outstanding at end of year, exercise price (in dollars per share) | $ 42.99 | $ 42.43 | $ 34.48 | $ 46.87 | $ 42.99 | $ 42.43 |
Options exercisable at end of year (in shares) | 5,300 | 34,400 | 50,400 | |||
Exercisable at end of year, exercise price (in dollars per share) | $ 46.87 | $ 41.21 | $ 39.86 |
Stock Options (Schedule of No_2
Stock Options (Schedule of Non-Qualified Stock Options Outstanding and Exercisable) (Details) - Non Qualified Options - $ / shares | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Options outstanding (in shares) | 5,300 | 40,200 | 67,000 | 112,400 |
Options exercisable (in shares) | 5,300 | 34,400 | 50,400 | |
$26.45 - $42.70 | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Range of exercise price, lower range limit (in dollars per share) | $ 26.45 | |||
Range of exercise price, upper range limit (in dollars per share) | $ 42.70 | |||
Options outstanding, exercise price range (in shares) | 1,300 | |||
Options outstanding, remaining contractual life | 1 year 4 months 9 days | |||
Options outstanding, exercise price (in dollars per share) | $ 26.45 | |||
Options exercisable, exercise price range (in shares) | 1,300 | |||
Options exercisable, exercise price (in dollars per share) | $ 26.45 | |||
$49.44 - $83.99 | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Range of exercise price, lower range limit (in dollars per share) | 49.44 | |||
Range of exercise price, upper range limit (in dollars per share) | $ 83.99 | |||
Options outstanding, exercise price range (in shares) | 4,000 | |||
Options outstanding, remaining contractual life | 4 years 4 months 13 days | |||
Options outstanding, exercise price (in dollars per share) | $ 53.51 | |||
Options exercisable, exercise price range (in shares) | 4,000 | |||
Options exercisable, exercise price (in dollars per share) | $ 53.51 |
Stock Options (Schedule of Rest
Stock Options (Schedule of Restricted Stock Award Activity) (Details) - Restricted Stock - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Shares | |||
Outstanding at beginning of year (in shares) | 75,636 | 63,052 | 45,621 |
Granted (in shares) | 36,060 | 35,300 | 33,620 |
Exercised (in shares) | (32,466) | (22,266) | (16,189) |
Canceled (in shares) | (525) | (450) | 0 |
Outstanding at end of year (in shares) | 78,705 | 75,636 | 63,052 |
Grant-Date Fair Value | |||
Outstanding at beginning of year (in dollars per share) | $ 81.39 | $ 70.08 | $ 54.58 |
Granted (in dollars per share) | 105.69 | 92.50 | 84.34 |
Exercised (in dollars per share) | 69.94 | 66.91 | 56.03 |
Canceled (in dollars per share) | 99.96 | 83.99 | 0 |
Outstanding at end of year (in dollars per share) | $ 94.34 | $ 81.39 | $ 70.08 |
Retirement Benefit Plans (Narra
Retirement Benefit Plans (Narrative) (Details) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2019USD ($)subsidiaryemployeeplan | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Feb. 03, 2006plan | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Number of non-contributory defined benefit pension plans | plan | 2 | ||||
Estimate of amount of unrecognized actuarial expense | $ 508 | ||||
Number of defined contribution plans | plan | 2 | ||||
IAM Plan | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Annual contribution amount | $ 557 | $ 418 | $ 408 | ||
Pension Plan | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Underfunded status | (1,844) | (1,944) | |||
Supplemental Employee Retirement Plan | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Estimate of amount of unrecognized actuarial expense | $ 475 | ||||
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 | ||||
Supplemental Employee Retirement Plan | Minimum | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Current retirement benefit percentage | 10.00% | ||||
Supplemental Employee Retirement Plan | Maximum | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Current retirement benefit percentage | 20.00% | ||||
Employees’ Retirement Plan | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Former employees | employee | 245 | ||||
Current employees | employee | 64 | ||||
Hourly Employees’ Pension Plan | Pension Plan | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Amount of final contribution | $ 622 | ||||
Amount expenses of accumulated pension actuarial losses | $ 2,889 | ||||
United States | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Annual contribution amount | $ 2,806 | 2,340 | 1,942 | ||
Foreign Plan | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Annual contribution amount | $ 861 | $ 850 | $ 716 | ||
Number of international subsidiaries that participate in defined contribution and savings plan | subsidiary | 3 | ||||
Foreign Plan | Minimum | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Employer contribution percentage | 0.00% | ||||
Foreign Plan | Maximum | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Employer contribution percentage | 10.00% |
Retirement Benefit Plans (Sched
Retirement Benefit Plans (Schedule of Defined Benefit Plans Disclosures) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Change in fair value of plan assets | ||
Fair value of plan assets at beginning of year | $ 18,106 | |
Fair value of plan assets at end of year | 20,605 | $ 18,106 |
Pension Plan | ||
Change in projected benefit obligation | ||
Benefit obligation at beginning of year | 20,050 | 21,552 |
Service cost | 3 | 4 |
Interest cost | 819 | 757 |
Liability actuarial (gain) loss | 2,604 | (1,270) |
Benefits paid | (1,027) | (993) |
Benefit obligation at end of year | 22,449 | 20,050 |
Change in fair value of plan assets | ||
Fair value of plan assets at beginning of year | 18,106 | 20,327 |
Return on plan assets | 3,526 | (1,228) |
Employer contributions | 0 | 0 |
Benefits paid | (1,027) | (993) |
Fair value of plan assets at end of year | 20,605 | 18,106 |
Funded status | (1,844) | (1,944) |
Supplemental Employee Retirement Plan | ||
Change in projected benefit obligation | ||
Benefit obligation at beginning of year | 7,446 | 5,945 |
Service cost | 240 | 249 |
Interest cost | 298 | 248 |
Liability actuarial (gain) loss | 1,193 | (328) |
Benefits paid | (155) | (98) |
Plan amendments | 0 | 1,430 |
Benefit obligation at end of year | $ 9,022 | $ 7,446 |
Retirement Benefit Plans (Sch_2
Retirement Benefit Plans (Schedule of Assumptions Used) (Details) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Pension Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 3.15% | 4.20% |
Discount rate | 4.20% | 3.60% |
Long-term rate of return on plan assets | 7.25% | 7.25% |
Supplemental Employee Retirement Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 2.95% | 4.10% |
Composite rate of compensation increase | 3.00% | 3.00% |
Discount rate | 4.10% | 3.45% |
Composite rate of compensation increase | 3.00% | 3.00% |
Retirement Benefit Plans (Sch_3
Retirement Benefit Plans (Schedule of Net Periodic Benefit Cost) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Pension Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $ 3 | $ 4 |
Interest cost | 819 | 757 |
Expected return on plan assets | (1,273) | (1,454) |
Amortization of net loss | 542 | 346 |
Net periodic benefit cost | 91 | (347) |
Supplemental Employee Retirement Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 240 | 249 |
Interest cost | 298 | 248 |
Amortization of prior service cost | 318 | 501 |
Net periodic benefit cost | $ 856 | $ 998 |
Retirement Benefit Plans (Weigh
Retirement Benefit Plans (Weighted Average Asset Allocations) (Details) - Pension Plan | Dec. 31, 2019 | Dec. 31, 2018 |
Defined Benefit Plan Disclosure [Line Items] | ||
Asset allocations as a percentage of plan assets | 100.00% | 100.00% |
Equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Asset allocations as a percentage of plan assets | 56.00% | 55.00% |
Debt securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Asset allocations as a percentage of plan assets | 37.00% | 38.00% |
Short-term investments | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Asset allocations as a percentage of plan assets | 2.00% | 2.00% |
Other | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Asset allocations as a percentage of plan assets | 5.00% | 5.00% |
Retirement Benefit Plans (Sch_4
Retirement Benefit Plans (Schedule of Fair Value of Plan Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 20,605 | $ 18,106 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 7,060 | 6,203 |
Significant Other Observable Inputs (Level 2) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 13,545 | 11,903 |
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 | 2,239 | 1,176 |
Mid Cap | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 2,239 | 1,176 |
Large Cap | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 2,574 | 2,618 |
Large Cap | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 2,574 | 2,618 |
International | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 1,879 | 2,051 |
International | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 1,879 | 2,051 |
Wells Fargo Liability Driven Solution | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 2,866 | 2,532 |
Wells Fargo Liability Driven Solution | Significant Other Observable Inputs (Level 2) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 2,866 | 2,532 |
Wells Fargo BlackRock International Equity | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 861 | 765 |
Wells Fargo BlackRock International Equity | Significant Other Observable Inputs (Level 2) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 861 | 765 |
Wells Fargo Core Bond | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 1,413 | 1,266 |
Wells Fargo Core Bond | Significant Other Observable Inputs (Level 2) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 1,413 | 1,266 |
Wells Fargo/Causeway International | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 864 | 766 |
Wells Fargo/Causeway International | Significant Other Observable Inputs (Level 2) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 864 | 766 |
Wells Fargo BlackRock Large Cap Growth Index Fund | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 1,153 | 1,026 |
Wells Fargo BlackRock Large Cap Growth Index Fund | Significant Other Observable Inputs (Level 2) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 1,153 | 1,026 |
Wells Fargo BlackRock Large Cap Value Index Fund | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 1,159 | 1,025 |
Wells Fargo BlackRock Large Cap Value Index Fund | Significant Other Observable Inputs (Level 2) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 1,159 | 1,025 |
Wells Fargo Multi-Manager Small Cap | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 1,434 | 1,246 |
Wells Fargo Multi-Manager Small Cap | Significant Other Observable Inputs (Level 2) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 1,434 | 1,246 |
Wells Fargo BlackRock Russell 2000 Index Fund | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 667 | 573 |
Wells Fargo BlackRock Russell 2000 Index Fund | Significant Other Observable Inputs (Level 2) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 667 | 573 |
Wells Fargo BlackRock S&P Mid Cap Index Fund | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 732 | 641 |
Wells Fargo BlackRock S&P Mid Cap Index Fund | Significant Other Observable Inputs (Level 2) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 732 | 641 |
Wells Fargo/MFS Value CIT F | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 599 | 516 |
Wells Fargo/MFS Value CIT F | Significant Other Observable Inputs (Level 2) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 599 | 516 |
Wells Fargo/T. Rowe Price Large-Cap Growth Managed CIT | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 602 | 516 |
Wells Fargo/T. Rowe Price Large-Cap Growth Managed CIT | Significant Other Observable Inputs (Level 2) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 602 | 516 |
Wells Fargo/T. Rowe Price Equity Income | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 590 | 515 |
Wells Fargo/T. Rowe Price Equity Income | Significant Other Observable Inputs (Level 2) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 590 | 515 |
Wells Fargo Voya Large Cap Growth CIT F | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 605 | 516 |
Wells Fargo Voya Large Cap Growth CIT F | Significant Other Observable Inputs (Level 2) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 605 | 516 |
Cash & Short-term Investments | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 368 | 358 |
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 | $ 368 | $ 358 |
Retirement Benefit Plans (Sch_5
Retirement Benefit Plans (Schedule of Expected Benefit Payments) (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Pension Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
2020 | $ 1,152 |
2021 | 1,237 |
2022 | 1,267 |
2023 | 1,286 |
2024 | 1,294 |
Years 2025 through 2029 | 6,407 |
Supplemental Employee Retirement Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
2020 | 1,205 |
2021 | 350 |
2022 | 450 |
2023 | 453 |
2024 | 480 |
Years 2025 through 2029 | $ 3,258 |
Revenue and Segment Reporting_2
Revenue and Segment Reporting (Narrative) (Details) - segment | 3 Months Ended | 9 Months Ended |
Dec. 31, 2019 | Sep. 30, 2019 | |
Segment Reporting [Abstract] | ||
Number of principal reporting segments | 2 | 3 |
Revenue and Segment Reporting_3
Revenue and Segment Reporting (Schedule of Segment Reporting) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | ||||||||||||
Net Revenue | $ 300,189 | $ 271,829 | $ 285,186 | $ 261,934 | $ 256,038 | $ 257,572 | $ 257,125 | $ 238,087 | $ 1,119,138 | $ 1,008,822 | $ 912,380 | |
Income from Operations | 94,648 | 101,088 | 88,738 | |||||||||
Goodwill | 198,022 | 83,243 | 198,022 | 83,243 | 84,761 | $ 74,825 | ||||||
Identifiable Assets | 1,212,763 | 721,633 | 1,212,763 | 721,633 | ||||||||
Industrial | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net Revenue | 768,454 | 638,198 | 563,599 | |||||||||
Income from Operations | 65,262 | 65,077 | 55,752 | |||||||||
Goodwill | 183,307 | 68,672 | 183,307 | 68,672 | 69,504 | 63,152 | ||||||
Identifiable Assets | 922,738 | 440,729 | 922,738 | 440,729 | ||||||||
Agricultural | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net Revenue | 350,684 | 370,624 | 348,781 | |||||||||
Income from Operations | 29,386 | 36,011 | 32,986 | |||||||||
Goodwill | 14,715 | 14,571 | 14,715 | 14,571 | 15,257 | $ 11,673 | ||||||
Identifiable Assets | $ 290,025 | $ 280,904 | 290,025 | 280,904 | ||||||||
Wholegoods | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net Revenue | 875,805 | 802,403 | 714,862 | |||||||||
Parts | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net Revenue | 207,766 | 186,979 | 182,412 | |||||||||
Other | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net Revenue | $ 35,567 | $ 19,440 | $ 15,106 |
International Operations and _3
International Operations and Geographic Information (Schedule of International Operations) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||
Net sales | $ 1,119,138 | $ 1,008,822 | $ 912,380 |
Income from operations | 94,648 | 101,088 | 88,738 |
Identifiable assets | 1,212,763 | 721,633 | |
Non-US | |||
Segment Reporting Information [Line Items] | |||
Net sales | 357,602 | 297,246 | 254,144 |
Income from operations | 32,518 | 28,301 | 23,110 |
Income before income taxes | 31,975 | 29,254 | 22,476 |
Identifiable assets | $ 333,392 | $ 244,888 | $ 227,758 |
International Operations and _4
International Operations and Geographic Information (Schedule of Selected Geographic Financial Information) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | $ 1,119,138 | $ 1,008,822 | $ 912,380 |
Long-lived assets | 641,195 | 268,041 | 246,097 |
United States | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 774,854 | 726,582 | 663,600 |
Long-lived assets | 515,189 | 191,958 | 171,048 |
France | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 99,145 | 90,956 | 86,443 |
Long-lived assets | 19,513 | 18,650 | 19,324 |
Canada | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 72,950 | 62,077 | 52,332 |
Long-lived assets | 32,606 | 21,647 | 24,302 |
United Kingdom | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 52,098 | 51,043 | 44,416 |
Long-lived assets | 19,840 | 19,270 | 18,948 |
Brazil | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 17,919 | 16,829 | 9,321 |
Long-lived assets | 15,096 | 15,701 | 11,558 |
Netherlands | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 23,462 | 3,983 | 4,312 |
Long-lived assets | 37,930 | 0 | 0 |
China | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 16,384 | 9,479 | 2,071 |
Germany | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 7,825 | 1,600 | 2,811 |
Australia | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 7,550 | 9,055 | 12,778 |
Long-lived assets | 1,021 | 815 | 917 |
Other | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | $ 46,951 | $ 37,218 | $ 34,296 |
Quarterly Financial Data (Una_3
Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Schedule of Quarterly Financial Information Disclosure [Line Items] | |||||||||||
Sales | $ 300,189 | $ 271,829 | $ 285,186 | $ 261,934 | $ 256,038 | $ 257,572 | $ 257,125 | $ 238,087 | $ 1,119,138 | $ 1,008,822 | $ 912,380 |
Gross profit | 68,076 | 68,710 | 73,133 | 63,308 | 62,632 | 66,772 | 66,454 | 60,257 | 273,227 | 256,115 | 234,693 |
Net income | $ 9,568 | $ 17,418 | $ 20,667 | $ 15,253 | $ 16,589 | $ 23,543 | $ 18,771 | $ 14,583 | $ 62,906 | $ 73,486 | $ 44,315 |
Earnings per share | |||||||||||
Diluted (in dollars per share) | $ 0.81 | $ 1.47 | $ 1.75 | $ 1.30 | $ 1.41 | $ 2 | $ 1.60 | $ 1.24 | $ 5.33 | $ 6.25 | $ 3.79 |
Average shares | |||||||||||
Diluted (in shares) | 11,811 | 11,813 | 11,798 | 11,777 | 11,768 | 11,777 | 11,759 | 11,739 | 11,800 | 11,761 | 11,682 |
Dividends per share (in dollars per share) | $ 0.12 | $ 0.12 | $ 0.12 | $ 0.12 | $ 0.11 | $ 0.11 | $ 0.11 | $ 0.11 | |||
High | |||||||||||
Market price of common stock | |||||||||||
Share Price (in dollars per share) | 129.74 | 124.33 | 106.19 | 101.58 | 93.45 | 102.29 | 118.93 | 120.22 | $ 129.74 | $ 93.45 | |
Low | |||||||||||
Market price of common stock | |||||||||||
Share Price (in dollars per share) | $ 103.60 | $ 93.11 | $ 93 | $ 74.74 | $ 72.85 | $ 88.13 | $ 88.60 | $ 103.38 | $ 103.60 | $ 72.85 |