Document and Entitiy Informatio
Document and Entitiy Information - shares | 3 Months Ended | |
Mar. 31, 2017 | Apr. 25, 2017 | |
Document Information [Line Items] | ||
Entity Registrant Name | TITAN INTERNATIONAL INC | |
Entity Central Index Key | 899,751 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 59,657,340 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Net sales | $ 357,501 | $ 321,794 |
Cost of sales | 317,772 | 293,497 |
Gross profit (loss) | 39,729 | 28,297 |
Selling, general & administrative expenses | 41,338 | 35,062 |
Research and development expenses | 2,843 | 2,479 |
Royalty expense | 2,609 | 2,294 |
Operating Income (Loss) | (7,061) | (11,538) |
Interest expense | (7,721) | (8,512) |
Foreign exchange gain | 4,490 | 4,823 |
Other income | 3,149 | 3,905 |
Loss before income taxes | (7,143) | (11,322) |
Provision for income taxes | 3,442 | 1,004 |
Net loss | (10,585) | (12,326) |
Net income attributable to noncontrolling interests | 868 | 417 |
Net loss attributable to Titan | (11,453) | (12,743) |
Noncontrolling Interest, Change in Redemption Value | (941) | 5,208 |
Net loss Available to Common Stockholders, Basic | $ (10,512) | $ (17,951) |
Earnings (loss) per common share: | ||
Basic (in dollars per share) | $ (0.18) | $ (0.33) |
Diluted (in dollars per share) | $ (0.18) | $ (0.33) |
Average common shares outstanding: | ||
Basic (in shares) | 58,572 | 53,854 |
Diluted (in shares) | 58,572 | 53,854 |
Dividends declared per common share: | $ 0.005 | $ 0.005 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Net loss | $ (10,585) | $ (12,326) |
Currency translation adjustment, net | 11,019 | 17,584 |
Pension liability adjustments, net of tax of $(706), $(123), $(806), and $(506), respectively | 733 | 287 |
Comprehensive income (loss) | 1,167 | 5,545 |
Net comprehensive income, attributable to noncontrolling interests | 2,783 | 5,400 |
Comprehensive income (loss) attributable to Titan | $ (1,616) | $ 145 |
CONSOLIDATED STATEMENTS OF COM4
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | ||
Unrealized gain (loss) on investments, tax | $ 0 | $ 0 |
Pension liability adjustments, tax | $ (14) | $ (171) |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Current assets | ||
Cash and cash equivalents | $ 131,158 | $ 147,827 |
Certificates of Deposit, at Carrying Value | 50,000 | 50,000 |
Accounts receivable, net | 232,244 | 179,384 |
Inventories | 292,401 | 272,236 |
Prepaid and other current assets | 78,291 | 79,734 |
Total current assets | 784,094 | 729,181 |
Property, plant and equipment, net | 439,333 | 437,201 |
Deferred Income Taxes | 6,758 | 4,663 |
Investments and Other Noncurrent Assets | 96,048 | 94,851 |
Total assets | 1,326,233 | 1,265,896 |
Current liabilities | ||
Short-term debt | 46,244 | 97,412 |
Long-term Debt, Current Maturities | 46,244 | 97,412 |
Accounts payable | 186,163 | 148,255 |
Other current liabilities | 129,281 | 120,437 |
Total current liabilities | 361,688 | 366,104 |
Long-term debt | 409,706 | 408,760 |
Deferred income taxes | 16,362 | 13,183 |
Other long-term liabilities | 81,225 | 80,161 |
Total liabilities | 868,981 | 868,208 |
Redeemable Noncontrolling Interest, Equity, Carrying Amount | 106,825 | 104,809 |
Titan stockholders' equity | ||
Common stock ($0.0001 par value, 120,000,000 shares authorized, 55,253,092 issued, 53,984,344 outstanding) | 0 | 0 |
Additional paid-in capital | 538,707 | 479,075 |
Retained earnings | 5,463 | 17,214 |
Treasury stock (at cost, 1,268,748 and 1,339,583 shares, respectively) | (10,015) | (10,119) |
Deferred Compensation Equity | (1,075) | (1,075) |
Accumulated other comprehensive loss | (178,441) | (188,278) |
Total Titan stockholders' equity | 354,639 | 296,817 |
Noncontrolling interests | (4,212) | (3,938) |
Total equity | 350,427 | 292,879 |
Total liabilities and equity | $ 1,326,233 | $ 1,265,896 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 31, 2017 | Dec. 31, 2016 |
Liabilities and Equity [Abstract] | ||
Common Stock, par value | $ 0.0001 | $ 0 |
Common Stock, shares authorized (in shares) | 120,000,000 | 120,000,000 |
Common Stock, shares issued (in shares) | 60,715,336 | 55,253,092 |
Common Stock, shares, outstanding (in shares) | 59,643,711 | |
Treasury Stock, shares (in shares) | 1,071,645 | 1,083,212 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - 3 months ended Mar. 31, 2017 - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional paid-in capital [Member] | Retained earnings [Member] | Treasury stock [Member] | Deferred Compensation, Share-based Payments [Member] | Accumulated other comprehensive income (loss) [Member] | Parent [Member] | Noncontrolling interest [Member] |
Variable Interest Entity, Members Draw | $ (101) | $ 0 | $ (101) | ||||||
Balance, Beginning (in shares) at Dec. 31, 2016 | 54,169,880 | ||||||||
Balance, Beginning at Dec. 31, 2016 | 292,879 | 479,075 | $ 17,214 | $ (10,119) | $ (1,075) | $ (188,278) | 296,817 | (3,938) | |
Net loss | (10,585) | (11,453) | (11,453) | ||||||
Currency translation adjustment | 11,019 | 9,104 | 9,104 | ||||||
Pension liability adjustments, net of tax | 733 | 733 | 733 | ||||||
Dividends | (298) | (298) | (298) | ||||||
Noncontrolling Interest, Period Increase (Decrease) | 0 | ||||||||
Noncontrolling Interest, Change in Redemption Value | (941) | 941 | 941 | ||||||
Stock-based compensation | 204 | 204 | 204 | ||||||
Issuance of treasury stock under 401(k) plan (in shares) | 11,567 | ||||||||
Issuance of treasury stock under 401(k) plan | 131 | 27 | 104 | 131 | |||||
Net Income (Loss) Attributable to Nonredeemable Noncontrolling Interest | (11,205) | 248 | |||||||
Temporary Equity, Foreign Currency Translation Adjustments | $ 8,683 | (421) | |||||||
Balance, Ending (in shares) at Mar. 31, 2017 | 59,643,711 | 59,643,711 | |||||||
Balance, Ending at Mar. 31, 2017 | $ 350,427 | 538,707 | $ 5,463 | $ (10,015) | $ (1,075) | $ (178,441) | 354,639 | $ (4,212) | |
Net Income (Loss) Attributable to Redeemable Noncontrolling Interest | 620 | ||||||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, before Tax, Portion Attributable to Noncontrolling Interest | 2,337 | ||||||||
Stockholders' Equity, Other Shares | 5,462,264 | ||||||||
Stockholders' Equity, Other | $ 58,460 | $ (58,460) | $ (58,460) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Cash flows from operating activities: | ||
Net loss | $ (10,585) | $ (12,326) |
Adjustments to reconcile net income to net cash provided by (used for) operating activities: | ||
Depreciation and amortization | 14,466 | 15,249 |
Deferred income tax provision | 715 | (278) |
Stock-based compensation | 204 | 370 |
Issuance of treasury stock under 401(k) plan | 131 | 136 |
Non-cash foreign currency translation loss | (1,342) | (4,000) |
(Increase) decrease in assets: | ||
Accounts receivable | (48,180) | (32,150) |
Inventories | (14,547) | 15,610 |
Prepaid and other current assets | 2,641 | 3,335 |
Other assets | (251) | (1,119) |
Increase (decrease) in liabilities: | ||
Accounts payable | 34,313 | 9,747 |
Other current liabilities | 7,425 | 7,796 |
Other liabilities | 471 | (37) |
Net cash provided by operating activities | (14,539) | 2,333 |
Cash flows from investing activities: | ||
Capital expenditures | (8,389) | (7,149) |
Other | 574 | 771 |
Net cash used for investing activities | (7,815) | (6,378) |
Cash flows from financing activities: | ||
Proceeds from borrowings | 14,635 | 110 |
Payment on debt | (10,216) | (7,288) |
Dividends paid | (271) | (270) |
Net cash provided by (used for) financing activities | 4,148 | (7,448) |
Effect of exchange rate changes on cash | 1,537 | 2,402 |
Net increase (decrease) in cash and cash equivalents | (16,669) | (9,091) |
Cash and cash equivalents, beginning of period | 147,827 | 200,188 |
Cash and cash equivalents, end of period | 131,158 | 191,097 |
Supplemental Cash Flow Information [Abstract] | ||
Interest paid | 2,458 | 2,179 |
Income taxes paid | 648 | 1,137 |
Stockholders' Equity, Other | $ 58,460 | $ 0 |
ACCOUNTING POLICIES
ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
ACCOUNTING POLICIES | ACCOUNTING POLICIES In the opinion of Titan International, Inc. (Titan or the Company), the accompanying unaudited consolidated condensed financial statements contain all adjustments which are normal and recurring and necessary for a fair statement of the Company's financial position as of March 31, 2017 , and the results of operations and cash flows for three months ended March 31, 2017 and 2016 . Accounting policies have continued without significant change and are described in Note 1: Description of Business and Significant Accounting Policies contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2016. These interim financial statements have been prepared pursuant to the Securities and Exchange Commission's rules applicable to Form 10-Q and, therefore, certain information and footnote disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2016. Inventories Inventories are valued at the lower of cost or net realizable value. The Company’s inventories are valued under the first in, first out (FIFO) method or average cost method. Market value is estimated based on current selling prices. Estimated provisions are established for slow-moving and obsolete inventory. Prior to 2017, the Company used the last in, first out (LIFO) inventory cost method at its Titan Wheel Corporation of Illinois subsidiary. Effective January 1, 2017, the Company elected to change its method of inventory accounting at this subsidiary to the FIFO method. The Company believes that the FIFO method is preferable as it results in increased uniformity across the Company’s global operations with respect to the method of inventory accounting as no other subsidiaries were using the LIFO method. The Company also believes that the switch to FIFO at Titan Wheel Corporation of Illinois will improve financial reporting by better reflecting the current value of inventory, more closely aligning the flow of physical inventory with the accounting for the inventory, and providing better matching of revenues and expenses. The Company applied this change in method of inventory accounting by retrospectively adjusting the prior period financial statements. The cumulative effect of this accounting change resulted in a $6.6 million increase in retained earnings as of January 1, 2016. As a result of the retrospective adjustment of the change in accounting principle, certain amounts in the Company's Consolidated Condensed Statements of Operations for the quarter ended March 31, 2016, were adjusted as follows: Three Months Ended March 31, 2016 As originally reported Effect of change As adjusted Cost of sales $ 289,906 $ 3,591 $ 293,497 Loss from operations (7,947 ) (3,591 ) (11,538 ) Net Loss (8,735 ) (3,591 ) (12,326 ) Basic and diluted loss per share $ (0.27 ) $ (0.06 ) $ (0.33 ) The Consolidated Balance Sheet at December 31, 2016, was adjusted as follows: December 31, 2016 As originally reported Effect of change As adjusted Inventories $ 269,291 $ 2,945 $ 272,236 Retained Earnings 14,269 2,945 17,214 Sales Sales and revenues are presented net of sales taxes and other related taxes. Fair value of financial instruments The Company records all financial instruments, including cash and cash equivalents, certificates of deposit, accounts receivable, notes receivable, accounts payable, other accruals, and notes payable at cost, which approximates fair value due to their short term or stated rates. Investments in marketable equity securities are recorded at fair value. The 6.875% senior secured notes due 2020 (senior secured notes) are carried at cost of $396.1 million at March 31, 2017 . The fair value of the senior secured notes at March 31, 2017 , as obtained through an independent pricing source, was approximately $407.6 million . Cash dividends The Company declared cash dividends of $0.005 per share of common stock for each of the three months ended March 31, 2017 and 2016 . The first quarter 2017 cash dividend of $0.005 per share of common stock was paid April 13, 2017, to shareholders of record on March 31, 2017. Use of estimates The policies utilized by the Company in the preparation of the financial statements conform to accounting principles generally accepted in the United States of America and require management to make estimates, assumptions, and judgments that affect the reported amount of assets and liabilities, and disclosure of contingent assets and liabilities, at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual amounts could differ from these estimates and assumptions. Recently issued accounting standards In May 2014, the Financial Accounting Standards Board (FASB) issued ASU No. 2014-09, "Revenue from Contracts with Customers (Topic 606)." This update supersedes the revenue recognition requirements in Topic 605, Revenue Recognition. The core principle of this guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This guidance also requires disclosure about the nature, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The amendments in this update were deferred by ASU No. 2015-14, "Revenue form Contracts with Customers (Topic 606) Deferral of Effective Date," and are now effective for annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. The Company is in the process of comparing its current revenue recognition policies to the requirements of ASU No. 2014-09. For the majority of Titan’s revenue arrangements, no significant impacts are expected as these transactions are not accounted for under industry-specific guidance that will be superseded by ASU No. 2014-09 and generally consist of a single performance obligation to transfer promised goods or services. While the Company has not identified any material differences in the amount and timing of revenue recognition related to ASU No. 2014-09, the evaluation is not complete and Titan has not concluded on the overall impacts of adopting ASU No. 2014-09. The guidance provides for adoption either retrospectively to each prior reporting period or as a cumulative-effect adjustment as of the date of adoption. The Company plans to make a determination as to its method of adoption once it more fully completes its evaluation of the impacts of the standard on its revenue recognition and it is better able to evaluate the cost-benefit of each method. The Company believes it is following an appropriate timeline to allow for proper recognition, presentation, and disclosure upon adoption in the year beginning on January 1, 2018. In April 2016, the FASB issued ASU No. 2016-10, "Identifying Performance Obligations and Licensing." This ASU clarifies the following aspects of Topic 606: identifying performance obligations and the licensing implementation guidance. In May 2016, the FASB issued ASU No. 2016-12, "Narrow-Scope Improvements and Practical Expedients." This ASU affects only narrow aspects of Topic 606 related to assessing the collectability criterion; presentation of sales tax; noncash consideration; and contract modifications and completed contracts at transition. The amendments in these updates affect the guidance in ASU No. 2014-09, and the effective dates are the same as those for ASU No. 2014-09. In December 2016, the FASB issued ASU No. 2016-20, "Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers." The amendments in this update affect narrow aspects of the guidance issued in ASU No. 2014-09, and the effective dates are the same as those for ASU No. 2014-09. In January 2016, the FASB issued ASU No. 2016-01, "Recognition and Measurement of Financial Assets and Financial Liabilities." This update addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. This guidance is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The adoption of this guidance is not expected to have a material effect on the Company's consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, "Leases (Topic 842)." This update was issued to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The amendments in this update are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company is currently assessing the impact that adopting this new accounting guidance will have on the Company's consolidated financial statements. In August 2016, the FASB issued ASU No. 2016-15, "Classification of Certain Cash Receipts and Cash Payments." This update addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice. The amendments in this update are effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted in any interim or annual period. The adoption of this guidance is not expected to have a material effect on the Company's consolidated financial statements. In October 2016, the FASB issued ASU No. 2016-16, "Intra-Entity Transfers of Assets other than Inventory." This update requires the recognition of income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. The amendments in this update are effective for fiscal years beginning after December 15, 2017, including interim reporting periods within those annual reporting periods. The Company early adopted this guidance effective January 1, 2017. The adoption of this guidance did not have a material effect on the Company's consolidated financial statements. |
ACCOUNTS RECEIVABLE
ACCOUNTS RECEIVABLE | 3 Months Ended |
Mar. 31, 2017 | |
Receivables [Abstract] | |
ACCOUNTS RECEIVABLE | ACCOUNTS RECEIVABLE Accounts receivable consisted of the following as of the dates set forth below (amounts in thousands): March 31, December 31, Accounts receivable $ 235,123 $ 182,728 Allowance for doubtful accounts (2,879 ) (3,344 ) Accounts receivable, net $ 232,244 $ 179,384 |
INVENTORIES
INVENTORIES | 3 Months Ended |
Mar. 31, 2017 | |
Inventory Disclosure [Abstract] | |
Inventory Disclosure [Text Block] | INVENTORIES Inventories consisted of the following as of the dates set forth below (amounts in thousands): March 31, December 31, Raw material $ 81,372 $ 76,380 Work-in-process 39,031 32,395 Finished goods 171,998 163,461 $ 292,401 $ 272,236 |
PROPERTY, PLANT AND EQUIPMENT,
PROPERTY, PLANT AND EQUIPMENT, NET | 3 Months Ended |
Mar. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT | PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment, net consisted of the following as of the dates set forth below (amounts in thousands): March 31, December 31, Land and improvements $ 44,704 $ 43,871 Buildings and improvements 243,450 239,036 Machinery and equipment 582,708 573,717 Tools, dies and molds 108,228 106,695 Construction-in-process 44,444 43,080 1,023,534 1,006,399 Less accumulated depreciation (584,201 ) (569,198 ) $ 439,333 $ 437,201 Depreciation on fixed assets for the three months ended March 31, 2017 and 2016 , totaled $13.5 million and $14.2 million , respectively. Capital leases included in property, plant, and equipment consisted of the following as of the dates set forth below (amounts in thousands): March 31, December 31, Buildings and improvements $ 3,623 $ 3,565 Less accumulated amortization (1,977 ) (1,923 ) $ 1,646 $ 1,642 Machinery and equipment $ 31,699 $ 31,331 Less accumulated amortization (26,415 ) (26,502 ) $ 5,284 $ 4,829 |
INTANGIBLE ASSETS
INTANGIBLE ASSETS | 3 Months Ended |
Mar. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets Disclosure [Text Block] | INTANGIBLE ASSETS The components of intangible assets consisted of the following as of the dates set forth below (amounts in thousands): Weighted Average Useful Lives (in Years) March 31, 2017 March 31, December 31, Amortizable intangible assets: Customer relationships 10.4 $ 13,731 $ 13,171 Patents, trademarks and other 7.6 15,798 14,629 Total at cost 29,529 27,800 Less accumulated amortization (12,500 ) (11,399 ) $ 17,029 $ 16,401 Amortization related to intangible assets for the three months ended March 31, 2017 and 2016 , totaled $0.7 million and $0.7 million , respectively. Intangible assets are included as a component of other assets in the Consolidated Condensed Balance Sheet. The estimated aggregate amortization expense at March 31, 2017 , for each of the years (or other periods) set forth below is as follows (amounts in thousands): April 1 - December 31, 2017 $ 1,799 2018 2,375 2019 2,237 2020 2,237 2021 1,695 Thereafter 6,686 $ 17,029 |
WARRANTY
WARRANTY | 3 Months Ended |
Mar. 31, 2017 | |
Product Warranties Disclosures [Abstract] | |
WARRANTY COSTS | WARRANTY Changes in the warranty liability consisted of the following (amounts in thousands): 2017 2016 Warranty liability, January 1 $ 17,926 $ 23,120 Provision for warranty liabilities 1,864 1,813 Warranty payments made (1,589 ) (2,790 ) Warranty liability, March 31 $ 18,201 $ 22,143 The Company provides limited warranties on workmanship on its products in all market segments. The majority of the Company’s products are subject to a limited warranty that ranges between less than one year and ten |
REVOLVING CREDIT FACILITY AND L
REVOLVING CREDIT FACILITY AND LONG-TERM DEBT | 3 Months Ended |
Mar. 31, 2017 | |
Debt Disclosure [Abstract] | |
REVOLVING CREDIT FACILITY AND LONG-TERM DEBT | REVOLVING CREDIT FACILITY AND LONG-TERM DEBT Long-term debt consisted of the following as of the dates set forth below (amounts in thousands): March 31, 2017 Principal Balance Unamortized Discount Net Carrying Amount 6.875% senior secured notes due 2020 $ 400,000 $ (3,906 ) $ 396,094 Titan Europe credit facilities 35,858 — 35,858 Other debt 23,240 — 23,240 Capital leases 758 — 758 Total debt 459,856 (3,906 ) 455,950 Less amounts due within one year 46,244 — 46,244 Total long-term debt $ 413,612 $ (3,906 ) $ 409,706 December 31, 2016 Principal Balance Unamortized Discount Net Carrying Amount 6.875% senior secured notes due 2020 $ 400,000 $ (4,148 ) $ 395,852 5.625% convertible senior subordinated notes due 2017 60,161 (13 ) 60,148 Titan Europe credit facilities 33,710 — 33,710 Other debt 15,560 — 15,560 Capital leases 902 — 902 Total debt 510,333 (4,161 ) 506,172 Less amounts due within one year 97,425 (13 ) 97,412 Total long-term debt $ 412,908 $ (4,148 ) $ 408,760 Aggregate maturities of long-term debt at March 31, 2017 , were as follows (amounts in thousands): April 1 - December 31, 2017 $ 46,170 2018 4,062 2019 6,726 2020 402,225 2021 529 Thereafter 144 $ 459,856 6.875% senior secured notes due 2020 The senior secured notes are due October 2020. These notes are secured by the land and buildings of the following subsidiaries of the Company: Titan Tire Corporation, Titan Tire Corporation of Bryan, Titan Tire Corporation of Freeport, and Titan Wheel Corporation of Illinois. 5.625% convertible senior subordinated notes due 2017 In January 2017, the Company converted 97.1% of the principal balance of its 5.625% convertible senior subordinated notes (Notes), which matured on January 15, 2017, into shares of Titan common stock. Prior to maturity, $60.2 million in aggregate principal amount of the Notes was outstanding, of which holders of $58.5 million in aggregate principal amount of the Notes, or 97.1% , converted their Notes into shares of Titan common stock pursuant to the terms of the indenture governing the Notes. The $58.5 million in principal amount of converted Notes were converted into 5,462,264 shares of Titan common stock, representing approximately 10% of Titan’s outstanding common stock prior to conversion. Each $1,000 principal amount of the Notes was convertible into 93.436 shares of Titan common stock. The remaining $1.7 million principal amount of the Notes that was not converted was paid in cash at maturity. Titan Europe credit facilities The Titan Europe credit facilities contain borrowings from various institutions totaling $35.9 million at March 31, 2017 . Maturity dates on this debt range from less than one year to nine years and interest rates range from 5% to 6.9% . The Titan Europe facilities are secured by the assets of its subsidiaries in Italy, Spain, Germany, and Brazil. Revolving credit facility On February 17, 2017, the Company entered into a credit and security agreement with respect to a new $75 million revolving credit facility (credit facility) with agent BMO Harris Bank N.A. and other financial institutions party thereto. This credit facility replaced the Company's $150 million revolving credit facility which was previously scheduled to terminate in December 2017. The credit facility is collateralized by accounts receivable and inventory of certain of the Company’s domestic subsidiaries and includes a maturity of the earlier of five years or six months prior to maturity of the Company’s senior secured notes. Titan's availability under this credit facility may be less than $75 million as a result of outstanding letters of credit and eligible accounts receivable and inventory balances at certain of its domestic subsidiaries. At March 31, 2017 , an outstanding letter of credit under the credit facility totaled $11.6 million and the amount available under the facility totaled $63.4 million based upon eligible accounts receivable and inventory balances. During the first three months of 2017 and at March 31, 2017 , there were no borrowings under the credit facility. Other debt Titan Pneus do Brasil Ltda has working capital loans for the Sao Paulo, Brazil, manufacturing facility totaling $8.1 million at March 31, 2017 . Maturity dates on this debt range from less than one year to two years and interest rates range from 5.5% to 8% . Voltyre-Prom had working capital loans totaling $15.1 million at March 31, 2017 . Maturity dates on this debt range from less than one year to three years and interest rates range from 11.2% to 11.3% |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS (Notes) | 3 Months Ended |
Mar. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities Disclosure [Text Block] | DERIVATIVE FINANCIAL INSTRUMENTS The Company uses financial derivatives to mitigate its exposure to volatility in foreign currency exchange rates. These derivative financial instruments are recognized at fair value. The Company has not designated these financial instruments as hedging instruments. Any gain or loss on the re-measurement of the fair value is recorded as an offset to currency exchange gain/loss. For the three months ended March 31, 2017 , the Company recorded currency exchange loss of $0.1 million |
REDEEMABLE NONCONTROLLING INTER
REDEEMABLE NONCONTROLLING INTEREST (Notes) | 3 Months Ended |
Mar. 31, 2017 | |
Noncontrolling Interest [Abstract] | |
Noncontrolling Interest Disclosure [Text Block] | REDEEMABLE NONCONTROLLING INTEREST The Company, in partnership with One Equity Partners (OEP) and the Russian Direct Investment Fund (RDIF), owns all of the equity interests in Voltyre-Prom, a leading producer of agricultural and industrial tires in Volgograd, Russia. The Company is party to a shareholders' agreement with OEP and RDIF which was entered into in connection with acquisition of Voltyre-Prom. The agreement contains a settlement put option which is exercisable beginning in July 2018 through December of 2018 and may require Titan to purchase the indirect equity interests in Voltyre-Prom of OEP and RDIF with cash or Titan common stock, at a value set by the agreement. The value set by the agreement is the greater of: (i) the aggregate of the investment of the selling party and an amount representing an internal rate of return of 8%; or (ii) the last twelve months of EBITDA times 5.5 less net debt times the ownership percentage. The value of the redeemable noncontrolling interest held by OEP and RDIF has been recorded at the aggregate of the investment of the selling party and an amount representing an internal rate of return of 8%, which was greater than the result of the calculation in clause (ii) above at March 31, 2017. The redemption features of the settlement put option are not solely within the Company’s control and the noncontrolling interest is presented as redeemable noncontrolling interest separately from total equity in the Consolidated Condensed Balance Sheet at the redemption value of the settlement put option. If the redemption value is greater than the carrying value of the noncontrolling interest, the increase in the redemption value is adjusted directly to retained earnings of the affected entity, or additional paid-in capital if there are no available retained earnings applicable to the redeemable noncontrolling interest. In the first quarter of 2016, the Company acquired $25 million of additional shares in the consortium owning Voltyre-Prom, increasing Titan's ownership to 43% from 30% . The acquisition of shares was transacted through the conversion of an intercompany note previously held by Titan. As a result of the ownership change, the balance of the redeemable noncontrolling interest increased by $12 million at the time of such conversion of the intercompany note, which is comprised of a $3.5 million reclassification of currency translation and an $8.5 million reclassification of other equity. The following is a reconciliation of redeemable noncontrolling interest as of March 31, 2017 and 2016 (amounts in thousands): 2017 2016 Balance at January 1 $ 104,809 $ 77,174 Reclassification as a result of ownership change — 12,039 Income attributable to redeemable noncontrolling interest 620 580 Currency translation 2,337 1,773 Redemption value adjustment (941 ) 5,208 Balance at March 31 $ 106,825 $ 96,774 This obligation with respect to the settlement put option approximates the cost if all remaining shares were purchased by the Company on March 31, 2017 |
LEASE COMMITMENTS
LEASE COMMITMENTS | 3 Months Ended |
Mar. 31, 2017 | |
Leases [Abstract] | |
LEASE COMMITMENTS | LEASE COMMITMENTS The Company leases certain buildings and equipment under operating leases. Certain lease agreements provide for renewal options, fair value purchase options, and payment of property taxes, maintenance, and insurance by the Company. At March 31, 2017 , future minimum rental commitments under noncancellable operating leases with initial terms of at least one year were as follows (amounts in thousands): April 1 - December 31, 2017 $ 4,970 2018 4,571 2019 3,612 2020 2,297 2021 2,354 Thereafter 1,365 Total future minimum lease payments $ 19,169 At March 31, 2017 , the Company had assets held as capital leases with a net book value of $6.9 million included in property, plant and equipment. At March 31, 2017 , total future capital lease obligations relating to these leases were as follows (amounts in thousands): April 1 - December 31, 2017 $ 365 2018 212 2019 162 2020 18 2021 2 Total future capital lease obligation payments 759 Less amount representing interest (11 ) Present value of future capital lease obligation payments $ 748 |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 3 Months Ended |
Mar. 31, 2017 | |
Compensation and Retirement Disclosure [Abstract] | |
Pension and Other Postretirement Benefits Disclosure [Text Block] | EMPLOYEE BENEFIT PLANS The Company has three frozen defined benefit pension plans covering certain employees or former employees of three U.S. subsidiaries. The Company also has pension plans covering certain employees of several foreign subsidiaries. The Company also sponsors a number of defined contribution plans in the U.S. and at foreign subsidiaries. The Company contributed approximately $0.5 million to the pension plans during the three months ended March 31, 2017 , and expects to contribute approximately $2.7 million to the pension plans during the remainder of 2017. The components of net periodic pension cost consisted of the following as of the dates set forth below (amounts in thousands): Three months ended March 31, 2017 2016 Service cost $ 225 $ 106 Interest cost 1,171 1,237 Expected return on assets (1,369 ) (1,393 ) Amortization of unrecognized prior service cost 34 34 Amortization of net unrecognized loss 674 765 Net periodic pension cost $ 735 $ 749 |
VARIABLE INTEREST ENTITIES (Not
VARIABLE INTEREST ENTITIES (Notes) | 3 Months Ended |
Mar. 31, 2017 | |
VARIABLE INTEREST ENTITIES [Abstract] | |
Variable Interest Entities Disclosure [Text Block] | VARIABLE INTEREST ENTITIES The Company holds a variable interest in three joint ventures for which the Company is the primary beneficiary. Two of the joint ventures operate distribution facilities which primarily distribute mining products. One of these facilities is located in Canada and the other is located in Australia. The Company’s variable interest in these joint ventures relates to sales of Titan product to these entities, consigned inventory, and working capital loans. The third joint venture is the consortium which owns Voltyre-Prom. (See Note 9 for additional information.) Titan is acting as operating partner with responsibility for Voltyre-Prom’s daily operations. The Company has also provided working capital loans to Voltyre-Prom. As the primary beneficiary of these variable interest entities (VIEs), the entities’ assets, liabilities, and results of operations are included in the Company’s consolidated financial statements. The other equity holders’ interests are reflected in “Net income attributable to noncontrolling interests” in the Consolidated Condensed Statements of Operations and “Noncontrolling interests” in the Consolidated Condensed Balance Sheets. The following table summarizes the carrying amount of the entities’ assets and liabilities included in the Company’s Consolidated Condensed Balance Sheets at March 31, 2017 , and December 31, 2016 (amounts in thousands): March 31, December 31, 2016 Cash and cash equivalents $ 13,188 $ 9,396 Inventory 15,573 11,445 Other current assets 32,723 23,301 Property, plant and equipment, net 34,434 30,448 Other noncurrent assets 5,430 4,955 Total assets $ 101,348 $ 79,545 Current liabilities $ 37,322 $ 22,068 Noncurrent liabilities 5,991 5,350 Total liabilities $ 43,313 $ 27,418 All assets in the above table can only be used to settle obligations of the consolidated VIE to which the respective assets relate. Liabilities are nonrecourse obligations. Amounts presented in the table above are adjusted for intercompany eliminations. The Company holds a variable interest in certain VIEs which are not consolidated because Titan is not the primary beneficiary. The Company's involvement with these entities is in the form of direct equity interests and prepayments and purchases of materials. The maximum exposure to loss represents the loss of assets recognized by Titan relating to non-consolidated entities and amounts due to the non-consolidated assets. The assets and liabilities recognized in Titan's Consolidated Balance Sheets related to Titan's interest in these non-consolidated VIEs and the Company's maximum exposure to loss relating to non-consolidated VIEs as of the dates set forth below were as follows (amounts in thousands): March 31, December 31, 2016 Investments $ 4,762 $ 4,738 Other current assets 1,072 1,039 Total VIE assets 5,834 5,777 Accounts payable 1,121 932 Maximum exposure to loss $ 6,955 $ 6,709 |
ROYALTY EXPENSE
ROYALTY EXPENSE | 3 Months Ended |
Mar. 31, 2017 | |
Other Income and Expenses [Abstract] | |
ROYALTY EXPENSE | ROYALTY EXPENSE The Company has trademark license agreements with The Goodyear Tire & Rubber Company to manufacture and sell certain farm tires under the Goodyear name. These agreements cover sales in North America, Latin America, Europe, the Middle East, Africa, Russia, and other Commonwealth of Independent States countries. The North American and Latin American farm tire royalties were prepaid through March 2018 as a part of the 2011 Goodyear Latin American farm tire acquisition. The Company also has a trademark license agreement with Goodyear to manufacture and sell certain non-farm tire products in Latin America. Royalty expenses recorded were $2.6 million and $2.3 million for the quarters ended March 31, 2017 and 2016 |
OTHER INCOME
OTHER INCOME | 3 Months Ended |
Mar. 31, 2017 | |
Other Income and Expenses [Abstract] | |
OTHER INCOME, NET | OTHER INCOME Other income consisted of the following for the periods set forth below (amounts in thousands): Three months ended March 31, 2017 2016 Interest income $ 973 $ 411 Investment gain (loss) related to investments for deferred compensation 850 (217 ) Wheels India Limited equity income 849 497 Building rental income 600 362 Discount amortization on prepaid royalty 328 459 Gain (loss) on sale of assets (262 ) 2,342 Other income (expense) (189 ) 51 $ 3,149 $ 3,905 |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The Company recorded income tax expense of $3.4 million and $1.0 million for the quarters ended March 31, 2017 and 2016 , respectively. The Company's effective income tax rate was (48)% and (9)% for the three months ended March 31, 2017 and 2016 , respectively. The Company’s 2017 income tax expense and rate differs from the amount of income tax determined by applying the U.S. Federal income tax rate to pre-tax income primarily as a result of U.S. and certain foreign jurisdictions that incurred a full valuation allowance on deferred tax assets created by current year projected losses. In addition, there are non-deductible royalty expenses and statutory required income adjustments made in certain foreign jurisdictions that negatively impacted the tax rate for the period. The Company’s 2016 income tax expense and rate differs from the amount of income tax determined by applying the U.S. Federal income tax rate to pre-tax income primarily as a result of U.S. and certain foreign jurisdictions that incurred a full valuation allowance on deferred tax assets created by current year projected losses. In addition, certain profitable foreign jurisdictions have lower statutory rates as compared to the U.S. tax rate. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 3 Months Ended |
Mar. 31, 2017 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE Earnings per share (EPS) were as follows as of the dates below (amounts in thousands, except per share data): Three months ended March 31, 2017 2016 Net loss attributable to Titan $ (11,453 ) $ (12,743 ) Redemption value adjustment 941 (5,208 ) Net loss applicable to common shareholders $ (10,512 ) $ (17,951 ) Determination of shares: Weighted average shares outstanding (basic and diluted) 58,572 53,854 Earnings per share: Basic and diluted (0.18 ) (0.33 ) The effect of stock options/trusts and convertible notes has been excluded for the three months ended March 31, 2017 and 2016, as the effect would have been antidilutive. The weighted average share amount excluded for stock options/trusts was 0.2 million for each of the three months ended March 31, 2017 and 2016. The weighted average share amount excluded for convertible notes totaled 1.0 million shares for the three months ended March 31, 2017 and 5.6 million shares for the three months ended and March 31, 2016 |
LITIGATION
LITIGATION | 3 Months Ended |
Mar. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
LITIGATION | LITIGATION |
SEGMENT INFORMATION
SEGMENT INFORMATION | 3 Months Ended |
Mar. 31, 2017 | |
Segment Reporting [Abstract] | |
Segment information | SEGMENT INFORMATION The Company has aggregated its operating units into reportable segments based on its three customer markets: agricultural, earthmoving/construction, and consumer. These segments are based on the information used by the chief executive officer to make certain operating decisions, allocate portions of capital expenditures, and assess segment performance. Segment external revenues, expenses, and income from operations are determined on the basis of the results of operations of operating units of manufacturing facilities. Expenses and income from operations are allocated to appropriate segments based on the sales of operating units of manufacturing facilities. Segment assets are generally determined on the basis of the tangible assets located at such operating units’ manufacturing facilities and the intangible assets associated with the acquisitions of such operating units. However, certain operating units’ property, plant and equipment balances are carried at the corporate level. Titan is organized primarily on the basis of products being included in three market segments, with each reportable segment including wheels, tires, wheel/tire assemblies, and undercarriage systems and components. The table below presents information about certain operating results, separated by market segments for the three months ended March 31, 2017 and 2016 (amounts in thousands): Three months ended March 31, 2017 2016 Revenues from external customers Agricultural $ 180,516 $ 152,825 Earthmoving/construction 135,619 131,704 Consumer 41,366 37,265 $ 357,501 $ 321,794 Gross profit Agricultural $ 21,716 $ 16,140 Earthmoving/construction 12,649 9,429 Consumer 5,364 2,728 $ 39,729 $ 28,297 Income (loss) from operations Agricultural $ 12,584 $ 8,220 Earthmoving/construction 812 (1,016 ) Consumer 1,454 (850 ) Corporate & Unallocated (21,911 ) (17,892 ) Loss from operations (7,061 ) (11,538 ) Interest expense (7,721 ) (8,512 ) Foreign exchange gain 4,490 4,823 Other income, net 3,149 3,905 Loss before income taxes $ (7,143 ) $ (11,322 ) Assets by segment were as follows as of the dates set forth below (amounts in thousands): March 31, December 31, Total assets Agricultural $ 484,971 $ 439,371 Earthmoving/construction 485,997 443,879 Consumer 129,619 140,293 Corporate & Unallocated 225,646 242,353 $ 1,326,233 $ 1,265,896 |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 3 Months Ended |
Mar. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS Accounting standards for fair value measurements establish a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers are defined as: Level 1 – Quoted prices in active markets for identical instruments. Level 2 – Inputs other than quoted prices in active markets that are either directly or indirectly observable. Level 3 – Unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. Assets and liabilities measured at fair value on a recurring basis consisted of the following as of the dates set forth below (amounts in thousands): March 31, 2017 December 31, 2016 Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Contractual obligation investments $ 10,518 $ 10,518 $ — $ — $ 9,668 $ 9,668 $ — $ — Derivative financial instruments asset 891 — 891 — 988 — 988 — Preferred stock 171 — — 171 181 — — 181 Total $ 11,580 $ 10,518 $ 891 $ 171 $ 10,837 $ 9,668 $ 988 $ 181 The following table presents the changes, during the periods presented, in Titan's Level 3 investments that are measured at fair value on a recurring basis (amounts in thousands): Preferred stock Balance at December 31, 2016 $ 181 Total unrealized losses (10 ) Balance as of March 31, 2017 $ 171 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 3 Months Ended |
Mar. 31, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | RELATED PARTY TRANSACTIONS The Company sells products and pays commissions to companies controlled by persons related to the Chairman of Board of Directors of the Company, Mr. Maurice Taylor. The related party is Mr. Fred Taylor, who is Mr. Maurice Taylor’s brother. The companies which Mr. Fred Taylor is associated with that do business with Titan include the following: Blackstone OTR, LLC; FBT Enterprises; Green Carbon, INC; Silverstone, Inc.; and OTR Wheel Engineering. Sales of Titan products to these companies were approximately $0.5 million for three months ended March 31, 2017 , as compared to $0.3 million for the three months ended March 31, 2016 . Titan had trade receivables due from these companies of approximately $0.4 million at March 31, 2017 , and approximately $0.1 million at December 31, 2016 . Titan had purchases from these companies of approximately $0.1 million for the three months ended March 31, 2017 , as compared to no purchases for the three months ended March 31, 2016 . Sales commissions paid to the above companies were approximately $0.4 million for the three months ended March 31, 2017 , as compared to $0.6 million for the three months ended March 31, 2016 . In July 2013, the Company entered into a Shareholders’ Agreement between OEP and RDIF to acquire Voltyre-Prom. Mr. Richard M. Cashin Jr., a director of the Company, is the President of OEP, which owns 21.4% of the joint venture. The Shareholder’s Agreement contains a settlement put option which may require the Company to purchase equity interests in the joint venture from OEP and RDIF at a value set by the agreement. See Note 9 for additional information. The Company has a 34.2% equity stake in Wheels India Limited, a company incorporated in India and listed on the National Stock Exchange in India. The Company had trade payables due to Wheels India Limited of approximately $0.1 million at March 31, 2017 , and approximately $0.1 million at December 31, 2016 . The Company has a 19.5% equity stake in Titan-Yuxiang Wheel (Liuzhou) Co., Ltd, a company incorporated in China. The Company had trade payables due to Titan-Yuxiang Wheel (Liuzhou) Co., Ltd of approximately $1.1 million at March 31, 2017 , and approximately $0.9 million at December 31, 2016 . The Company has a 49.0% |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Notes) | 3 Months Ended |
Mar. 31, 2017 | |
Stockholders' Equity Note [Abstract] | |
Comprehensive Income (Loss) Note [Text Block] | ACCUMULATED OTHER COMPREHENSIVE LOSS Accumulated other comprehensive loss consisted of the following (amounts in thousands): Currency Translation Adjustments Unrecognized Losses and Prior Service Cost Total Balance at January 1, 2017 $ (162,628 ) $ (25,650 ) $ (188,278 ) Currency translation adjustments 9,104 — 9,104 Defined benefit pension plan entries: Amortization of unrecognized losses and prior service cost, net of tax of $(14) — 733 733 Balance at March 31, 2017 $ (153,524 ) $ (24,917 ) $ (178,441 ) |
SUBSIDIARY GUARANTOR FINANCIAL
SUBSIDIARY GUARANTOR FINANCIAL INFORMATION | 3 Months Ended |
Mar. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Condensed Financial Information of Parent Company Only Disclosure [Text Block] | SUBSIDIARY GUARANTOR FINANCIAL INFORMATION The senior secured notes are guaranteed by the following wholly-owned subsidiaries of the Company: Titan Tire Corporation, Titan Tire Corporation of Bryan, Titan Tire Corporation of Freeport, and Titan Wheel Corporation of Illinois. The note guarantees are full and unconditional, joint and several obligations of the guarantors. The guarantees of the guarantor subsidiaries are subject to release in limited circumstances only upon the occurrence of certain customary conditions. See the indenture incorporated by reference to the Company's most recent Form 10-K for additional information. The following condensed consolidating financial statements are presented using the equity method of accounting. Certain sales and marketing expenses recorded by non-guarantor subsidiaries have not been allocated to the guarantor subsidiaries. (Amounts in thousands) Consolidating Condensed Statements of Operations For the Three Months Ended March 31, 2017 Titan Intl., Inc. (Parent) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net sales $ — $ 143,836 $ 213,665 $ — $ 357,501 Cost of sales 69 126,712 190,991 — 317,772 Gross profit (loss) (69 ) 17,124 22,674 — 39,729 Selling, general and administrative expenses 4,871 17,271 19,196 — 41,338 Research and development expenses — 903 1,940 — 2,843 Royalty expense 417 1,294 898 — 2,609 Income (loss) from operations (5,357 ) (2,344 ) 640 — (7,061 ) Interest expense (7,445 ) — (276 ) — (7,721 ) Intercompany interest income (expense) 581 — (581 ) — — Foreign exchange gain — — 4,490 — 4,490 Other income (loss) 1,280 (145 ) 2,014 — 3,149 Income (loss) before income taxes (10,941 ) (2,489 ) 6,287 — (7,143 ) Provision for income taxes 1,676 174 1,592 — 3,442 Equity in earnings of subsidiaries 4,976 — (4,723 ) (253 ) — Net loss (7,641 ) (2,663 ) (28 ) (253 ) (10,585 ) Net income noncontrolling interests — — 868 — 868 Net loss attributable to Titan $ (7,641 ) $ (2,663 ) $ (896 ) $ (253 ) $ (11,453 ) (Amounts in thousands) Consolidating Condensed Statements of Operations For the Three Months Ended March 31, 2016 Titan Intl., Inc. (Parent) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net sales $ — $ 144,034 $ 177,760 $ — $ 321,794 Cost of sales 494 128,737 164,266 — 293,497 Gross profit (loss) (494 ) 15,297 13,494 — 28,297 Selling, general and administrative expenses 2,382 16,685 15,995 — 35,062 Research and development expenses — 768 1,711 — 2,479 Royalty expense 292 1,196 806 — 2,294 Loss from operations (3,168 ) (3,352 ) (5,018 ) — (11,538 ) Interest expense (8,283 ) — (229 ) — (8,512 ) Intercompany interest income (expense) 290 — (290 ) — — Foreign exchange gain (loss) — (2 ) 4,825 4,823 Other income 362 85 3,458 — 3,905 Income (loss) before income taxes (10,799 ) (3,269 ) 2,746 — (11,322 ) Provision for income taxes 379 191 434 — 1,004 Equity in earnings of subsidiaries 2,443 — (2,005 ) (438 ) — Net income (loss) (8,735 ) (3,460 ) 307 (438 ) (12,326 ) Net income noncontrolling interests — — 417 — 417 Net loss attributable to Titan $ (8,735 ) $ (3,460 ) $ (110 ) $ (438 ) $ (12,743 ) (Amounts in thousands) Consolidating Condensed Statements of Comprehensive Income (Loss) For the Three Months Ended March 31, 2017 Titan Intl., Inc. (Parent) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net loss $ (7,641 ) $ (2,663 ) $ (28 ) $ (253 ) $ (10,585 ) Currency translation adjustment 11,019 — 11,019 (11,019 ) 11,019 Pension liability adjustments, net of tax 733 625 108 (733 ) 733 Comprehensive income (loss) 4,111 (2,038 ) 11,099 (12,005 ) 1,167 Net comprehensive income attributable to redeemable and noncontrolling interests — — 2,783 — 2,783 Comprehensive income (loss) attributable to Titan $ 4,111 $ (2,038 ) $ 8,316 $ (12,005 ) $ (1,616 ) (Amounts in thousands) Consolidating Condensed Statements of Comprehensive Income (Loss) For the Three Months Ended March 31, 2016 Titan Intl., Inc. (Parent) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net income (loss) $ (8,735 ) $ (3,460 ) $ 307 $ (438 ) $ (12,326 ) Currency translation adjustment 17,584 — 17,584 (17,584 ) 17,584 Pension liability adjustments, net of tax 287 265 22 (287 ) 287 Comprehensive income (loss) 9,136 (3,195 ) 17,913 (18,309 ) 5,545 Net comprehensive income attributable to redeemable and noncontrolling interests — — 5,400 — 5,400 Comprehensive income (loss) attributable to Titan $ 9,136 $ (3,195 ) $ 12,513 $ (18,309 ) $ 145 (Amounts in thousands) Consolidating Condensed Balance Sheets March 31, 2017 Titan Intl., Inc. (Parent) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Assets Cash and cash equivalents $ 72,160 $ 9 $ 58,989 $ — $ 131,158 Certificates of deposit 50,000 — — 50,000 Accounts receivable, net — 64,629 167,615 — 232,244 Inventories — 81,963 210,438 — 292,401 Prepaid and other current assets 8,886 20,655 48,750 — 78,291 Total current assets 131,046 167,256 485,792 — 784,094 Property, plant and equipment, net 4,629 120,311 314,393 — 439,333 Investment in subsidiaries 751,660 — 82,907 (834,567 ) — Other assets 23,174 1,013 78,619 — 102,806 Total assets $ 910,509 $ 288,580 $ 961,711 $ (834,567 ) $ 1,326,233 Liabilities and Equity Short-term debt $ — $ — $ 46,244 $ — $ 46,244 Accounts payable 5,809 22,796 157,558 — 186,163 Other current liabilities 39,261 31,851 58,169 — 129,281 Total current liabilities 45,070 54,647 261,971 — 361,688 Long-term debt 396,094 — 13,612 — 409,706 Other long-term liabilities 28,259 17,958 51,370 — 97,587 Intercompany accounts 77,899 (282,576 ) 204,677 — — Redeemable noncontrolling interest — — 106,825 — 106,825 Titan shareholders' equity 363,187 498,551 327,468 (834,567 ) 354,639 Noncontrolling interests — — (4,212 ) — (4,212 ) Total liabilities and equity $ 910,509 $ 288,580 $ 961,711 $ (834,567 ) $ 1,326,233 (Amounts in thousands) Consolidating Condensed Balance Sheets December 31, 2016 Titan Intl., Inc. (Parent) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Assets Cash and cash equivalents $ 86,190 $ 9 $ 61,628 $ — $ 147,827 Certificates of deposit 50,000 — — — 50,000 Accounts receivable, net — 43,485 135,899 — 179,384 Inventories — 76,823 195,413 — 272,236 Prepaid and other current assets 11,965 21,901 45,868 — 79,734 Total current assets 148,155 142,218 438,808 — 729,181 Property, plant and equipment, net 4,898 124,049 308,254 — 437,201 Investment in subsidiaries 742,679 — 87,385 (830,064 ) — Other assets 23,627 1,118 74,769 — 99,514 Total assets $ 919,359 $ 267,385 $ 909,216 $ (830,064 ) $ 1,265,896 Liabilities and Equity Short-term debt $ 60,148 $ — $ 37,264 $ — $ 97,412 Accounts payable 4,187 14,398 129,670 — 148,255 Other current liabilities 34,140 34,475 51,822 — 120,437 Total current liabilities 98,475 48,873 218,756 — 366,104 Long-term debt 395,852 — 12,908 — 408,760 Other long-term liabilities 27,636 18,473 47,235 — 93,344 Intercompany accounts 94,977 (300,823 ) 205,846 — — Redeemable noncontrolling interest — — 104,809 — 104,809 Titan shareholders' equity 302,419 500,862 323,600 (830,064 ) 296,817 Noncontrolling interests — — (3,938 ) — (3,938 ) Total liabilities and equity $ 919,359 $ 267,385 $ 909,216 $ (830,064 ) $ 1,265,896 (Amounts in thousands) Consolidating Condensed Statements of Cash Flows For the Three Months Ended March, 2017 Titan Intl., Inc. (Parent) Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidated Net cash provided by (used for) operating activities $ (10,008 ) $ 1,541 $ (6,072 ) $ (14,539 ) Cash flows from investing activities: Capital expenditures (358 ) (1,588 ) (6,443 ) (8,389 ) Other, net — 47 527 574 Net cash used for investing activities (358 ) (1,541 ) (5,916 ) (7,815 ) Cash flows from financing activities: Proceeds from borrowings — — 14,635 14,635 Payment on debt (3,393 ) — (6,823 ) (10,216 ) Dividends paid (271 ) — — (271 ) Net cash provided by (used for) financing activities (3,664 ) — 7,812 4,148 Effect of exchange rate change on cash — — 1,537 1,537 Net decrease in cash and cash equivalents (14,030 ) — (2,639 ) (16,669 ) Cash and cash equivalents, beginning of period 86,190 9 61,628 147,827 Cash and cash equivalents, end of period $ 72,160 $ 9 $ 58,989 $ 131,158 (Amounts in thousands) Consolidating Condensed Statements of Cash Flows For the Three Months Ended March 31, 2016 Titan Intl., Inc. (Parent) Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidated Net cash provided by (used for) operating activities $ (11,182 ) $ 1,969 $ 11,546 $ 2,333 Cash flows from investing activities: Capital expenditures 365 (1,969 ) (5,545 ) (7,149 ) Other, net — — 771 771 Net cash provided by (used for) investing activities 365 (1,969 ) (4,774 ) (6,378 ) Cash flows from financing activities: Proceeds from borrowings — — 110 110 Payment on debt — — (7,288 ) (7,288 ) Dividends paid (270 ) — — (270 ) Net cash used for financing activities (270 ) — (7,178 ) (7,448 ) Effect of exchange rate change on cash — — 2,402 2,402 Net increase (decrease) in cash and cash equivalents (11,087 ) — 1,996 (9,091 ) Cash and cash equivalents, beginning of period 142,401 4 57,783 200,188 Cash and cash equivalents, end of period $ 131,314 $ 4 $ 59,779 $ 191,097 |
ACCOUNTING POLICIES (Policies)
ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
Inventory, Policy [Policy Text Block] | Inventories Inventories are valued at the lower of cost or net realizable value. The Company’s inventories are valued under the first in, first out (FIFO) method or average cost method. Market value is estimated based on current selling prices. Estimated provisions are established for slow-moving and obsolete inventory. |
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | Prior to 2017, the Company used the last in, first out (LIFO) inventory cost method at its Titan Wheel Corporation of Illinois subsidiary. Effective January 1, 2017, the Company elected to change its method of inventory accounting at this subsidiary to the FIFO method. The Company believes that the FIFO method is preferable as it results in increased uniformity across the Company’s global operations with respect to the method of inventory accounting as no other subsidiaries were using the LIFO method. The Company also believes that the switch to FIFO at Titan Wheel Corporation of Illinois will improve financial reporting by better reflecting the current value of inventory, more closely aligning the flow of physical inventory with the accounting for the inventory, and providing better matching of revenues and expenses. The Company applied this change in method of inventory accounting by retrospectively adjusting the prior period financial statements. The cumulative effect of this accounting change resulted in a $6.6 million increase in retained earnings as of January 1, 2016. As a result of the retrospective adjustment of the change in accounting principle, certain amounts in the Company's Consolidated Condensed Statements of Operations for the quarter ended March 31, 2016, were adjusted as follows: Three Months Ended March 31, 2016 As originally reported Effect of change As adjusted Cost of sales $ 289,906 $ 3,591 $ 293,497 Loss from operations (7,947 ) (3,591 ) (11,538 ) Net Loss (8,735 ) (3,591 ) (12,326 ) Basic and diluted loss per share $ (0.27 ) $ (0.06 ) $ (0.33 ) The Consolidated Balance Sheet at December 31, 2016, was adjusted as follows: December 31, 2016 As originally reported Effect of change As adjusted Inventories $ 269,291 $ 2,945 $ 272,236 Retained Earnings 14,269 2,945 17,214 |
Revenue Recognition, Sales of Goods [Policy Text Block] | SalesSales and revenues are presented net of sales taxes and other related taxes. |
Fair value of financial instruments | Fair value of financial instruments The Company records all financial instruments, including cash and cash equivalents, certificates of deposit, accounts receivable, notes receivable, accounts payable, other accruals, and notes payable at cost, which approximates fair value due to their short term or stated rates. Investments in marketable equity securities are recorded at fair value. The 6.875% senior secured notes due 2020 (senior secured notes) are carried at cost of $396.1 million at March 31, 2017 . The fair value of the senior secured notes at March 31, 2017 , as obtained through an independent pricing source, was approximately $407.6 million |
Use of Estimates, Policy [Policy Text Block] | Use of estimatesThe policies utilized by the Company in the preparation of the financial statements conform to accounting principles generally accepted in the United States of America and require management to make estimates, assumptions, and judgments that affect the reported amount of assets and liabilities, and disclosure of contingent assets and liabilities, at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual amounts could differ from these estimates and assumptions. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recently issued accounting standards In May 2014, the Financial Accounting Standards Board (FASB) issued ASU No. 2014-09, "Revenue from Contracts with Customers (Topic 606)." This update supersedes the revenue recognition requirements in Topic 605, Revenue Recognition. The core principle of this guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This guidance also requires disclosure about the nature, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The amendments in this update were deferred by ASU No. 2015-14, "Revenue form Contracts with Customers (Topic 606) Deferral of Effective Date," and are now effective for annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. The Company is in the process of comparing its current revenue recognition policies to the requirements of ASU No. 2014-09. For the majority of Titan’s revenue arrangements, no significant impacts are expected as these transactions are not accounted for under industry-specific guidance that will be superseded by ASU No. 2014-09 and generally consist of a single performance obligation to transfer promised goods or services. While the Company has not identified any material differences in the amount and timing of revenue recognition related to ASU No. 2014-09, the evaluation is not complete and Titan has not concluded on the overall impacts of adopting ASU No. 2014-09. The guidance provides for adoption either retrospectively to each prior reporting period or as a cumulative-effect adjustment as of the date of adoption. The Company plans to make a determination as to its method of adoption once it more fully completes its evaluation of the impacts of the standard on its revenue recognition and it is better able to evaluate the cost-benefit of each method. The Company believes it is following an appropriate timeline to allow for proper recognition, presentation, and disclosure upon adoption in the year beginning on January 1, 2018. In April 2016, the FASB issued ASU No. 2016-10, "Identifying Performance Obligations and Licensing." This ASU clarifies the following aspects of Topic 606: identifying performance obligations and the licensing implementation guidance. In May 2016, the FASB issued ASU No. 2016-12, "Narrow-Scope Improvements and Practical Expedients." This ASU affects only narrow aspects of Topic 606 related to assessing the collectability criterion; presentation of sales tax; noncash consideration; and contract modifications and completed contracts at transition. The amendments in these updates affect the guidance in ASU No. 2014-09, and the effective dates are the same as those for ASU No. 2014-09. In December 2016, the FASB issued ASU No. 2016-20, "Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers." The amendments in this update affect narrow aspects of the guidance issued in ASU No. 2014-09, and the effective dates are the same as those for ASU No. 2014-09. In January 2016, the FASB issued ASU No. 2016-01, "Recognition and Measurement of Financial Assets and Financial Liabilities." This update addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. This guidance is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The adoption of this guidance is not expected to have a material effect on the Company's consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, "Leases (Topic 842)." This update was issued to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The amendments in this update are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company is currently assessing the impact that adopting this new accounting guidance will have on the Company's consolidated financial statements. In August 2016, the FASB issued ASU No. 2016-15, "Classification of Certain Cash Receipts and Cash Payments." This update addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice. The amendments in this update are effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted in any interim or annual period. The adoption of this guidance is not expected to have a material effect on the Company's consolidated financial statements. In October 2016, the FASB issued ASU No. 2016-16, "Intra-Entity Transfers of Assets other than Inventory." This update requires the recognition of income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. The amendments in this update are effective for fiscal years beginning after December 15, 2017, including interim reporting periods within those annual reporting periods. The Company early adopted this guidance effective January 1, 2017. The adoption of this guidance did not have a material effect on the Company's consolidated financial statements. |
ACCOUNTING POLICIES (Tables)
ACCOUNTING POLICIES (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block] | As a result of the retrospective adjustment of the change in accounting principle, certain amounts in the Company's Consolidated Condensed Statements of Operations for the quarter ended March 31, 2016, were adjusted as follows: Three Months Ended March 31, 2016 As originally reported Effect of change As adjusted Cost of sales $ 289,906 $ 3,591 $ 293,497 Loss from operations (7,947 ) (3,591 ) (11,538 ) Net Loss (8,735 ) (3,591 ) (12,326 ) Basic and diluted loss per share $ (0.27 ) $ (0.06 ) $ (0.33 ) The Consolidated Balance Sheet at December 31, 2016, was adjusted as follows: December 31, 2016 As originally reported Effect of change As adjusted Inventories $ 269,291 $ 2,945 $ 272,236 Retained Earnings 14,269 2,945 17,214 |
ACCOUNTS RECEIVABLE (Tables)
ACCOUNTS RECEIVABLE (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Receivables [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | Accounts receivable consisted of the following as of the dates set forth below (amounts in thousands): March 31, December 31, Accounts receivable $ 235,123 $ 182,728 Allowance for doubtful accounts (2,879 ) (3,344 ) Accounts receivable, net $ 232,244 $ 179,384 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current [Table Text Block] | Inventories consisted of the following as of the dates set forth below (amounts in thousands): March 31, December 31, Raw material $ 81,372 $ 76,380 Work-in-process 39,031 32,395 Finished goods 171,998 163,461 $ 292,401 $ 272,236 |
PROPERTY, PLANT AND EQUIPMENT35
PROPERTY, PLANT AND EQUIPMENT, NET (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment [Table Text Block] | Property, plant and equipment, net consisted of the following as of the dates set forth below (amounts in thousands): March 31, December 31, Land and improvements $ 44,704 $ 43,871 Buildings and improvements 243,450 239,036 Machinery and equipment 582,708 573,717 Tools, dies and molds 108,228 106,695 Construction-in-process 44,444 43,080 1,023,534 1,006,399 Less accumulated depreciation (584,201 ) (569,198 ) $ 439,333 $ 437,201 Depreciation on fixed assets for the three months ended March 31, 2017 and 2016 , totaled $13.5 million and $14.2 million , respectively. Capital leases included in property, plant, and equipment consisted of the following as of the dates set forth below (amounts in thousands): March 31, December 31, Buildings and improvements $ 3,623 $ 3,565 Less accumulated amortization (1,977 ) (1,923 ) $ 1,646 $ 1,642 Machinery and equipment $ 31,699 $ 31,331 Less accumulated amortization (26,415 ) (26,502 ) $ 5,284 $ 4,829 |
INTANGIBLE ASSETS (Tables)
INTANGIBLE ASSETS (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets and Goodwill [Table Text Block] | The components of intangible assets consisted of the following as of the dates set forth below (amounts in thousands): Weighted Average Useful Lives (in Years) March 31, 2017 March 31, December 31, Amortizable intangible assets: Customer relationships 10.4 $ 13,731 $ 13,171 Patents, trademarks and other 7.6 15,798 14,629 Total at cost 29,529 27,800 Less accumulated amortization (12,500 ) (11,399 ) $ 17,029 $ 16,401 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | The estimated aggregate amortization expense at March 31, 2017 , for each of the years (or other periods) set forth below is as follows (amounts in thousands): April 1 - December 31, 2017 $ 1,799 2018 2,375 2019 2,237 2020 2,237 2021 1,695 Thereafter 6,686 $ 17,029 |
WARRANTY (Tables)
WARRANTY (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Product Warranties Disclosures [Abstract] | |
Schedule of Product Warranty Liability [Table Text Block] | Changes in the warranty liability consisted of the following (amounts in thousands): 2017 2016 Warranty liability, January 1 $ 17,926 $ 23,120 Provision for warranty liabilities 1,864 1,813 Warranty payments made (1,589 ) (2,790 ) Warranty liability, March 31 $ 18,201 $ 22,143 |
REVOLVING CREDIT FACILITY AND38
REVOLVING CREDIT FACILITY AND LONG-TERM DEBT (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Debt Instrument [Line Items] | |
Schedule of Long-term Debt Instruments [Table Text Block] | Long-term debt consisted of the following as of the dates set forth below (amounts in thousands): March 31, 2017 Principal Balance Unamortized Discount Net Carrying Amount 6.875% senior secured notes due 2020 $ 400,000 $ (3,906 ) $ 396,094 Titan Europe credit facilities 35,858 — 35,858 Other debt 23,240 — 23,240 Capital leases 758 — 758 Total debt 459,856 (3,906 ) 455,950 Less amounts due within one year 46,244 — 46,244 Total long-term debt $ 413,612 $ (3,906 ) $ 409,706 December 31, 2016 Principal Balance Unamortized Discount Net Carrying Amount 6.875% senior secured notes due 2020 $ 400,000 $ (4,148 ) $ 395,852 5.625% convertible senior subordinated notes due 2017 60,161 (13 ) 60,148 Titan Europe credit facilities 33,710 — 33,710 Other debt 15,560 — 15,560 Capital leases 902 — 902 Total debt 510,333 (4,161 ) 506,172 Less amounts due within one year 97,425 (13 ) 97,412 Total long-term debt $ 412,908 $ (4,148 ) $ 408,760 |
Schedule of Maturities of Long-term Debt [Table Text Block] | Aggregate maturities of long-term debt at March 31, 2017 , were as follows (amounts in thousands): April 1 - December 31, 2017 $ 46,170 2018 4,062 2019 6,726 2020 402,225 2021 529 Thereafter 144 $ 459,856 |
REDEEMABLE NONCONTROLLING INT39
REDEEMABLE NONCONTROLLING INTEREST (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Noncontrolling Interest [Abstract] | |
Redeemable Noncontrolling Interest [Table Text Block] | The following is a reconciliation of redeemable noncontrolling interest as of March 31, 2017 and 2016 (amounts in thousands): 2017 2016 Balance at January 1 $ 104,809 $ 77,174 Reclassification as a result of ownership change — 12,039 Income attributable to redeemable noncontrolling interest 620 580 Currency translation 2,337 1,773 Redemption value adjustment (941 ) 5,208 Balance at March 31 $ 106,825 $ 96,774 |
LEASE COMMITMENTS (Tables)
LEASE COMMITMENTS (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Leases [Abstract] | |
Operating Leases of Lessee Disclosure [Table Text Block] | At March 31, 2017 , future minimum rental commitments under noncancellable operating leases with initial terms of at least one year were as follows (amounts in thousands): April 1 - December 31, 2017 $ 4,970 2018 4,571 2019 3,612 2020 2,297 2021 2,354 Thereafter 1,365 Total future minimum lease payments $ 19,169 |
Schedule of Future Minimum Lease Payments for Capital Leases [Table Text Block] | At March 31, 2017 , the Company had assets held as capital leases with a net book value of $6.9 million included in property, plant and equipment. At March 31, 2017 , total future capital lease obligations relating to these leases were as follows (amounts in thousands): April 1 - December 31, 2017 $ 365 2018 212 2019 162 2020 18 2021 2 Total future capital lease obligation payments 759 Less amount representing interest (11 ) Present value of future capital lease obligation payments $ 748 |
EMPLOYEE BENEFIT PLANS (Tables)
EMPLOYEE BENEFIT PLANS (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Compensation and Retirement Disclosure [Abstract] | |
Schedule of Defined Benefit Plans Disclosures [Table Text Block] | The components of net periodic pension cost consisted of the following as of the dates set forth below (amounts in thousands): Three months ended March 31, 2017 2016 Service cost $ 225 $ 106 Interest cost 1,171 1,237 Expected return on assets (1,369 ) (1,393 ) Amortization of unrecognized prior service cost 34 34 Amortization of net unrecognized loss 674 765 Net periodic pension cost $ 735 $ 749 |
VARIABLE INTEREST ENTITIES (Tab
VARIABLE INTEREST ENTITIES (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
VARIABLE INTEREST ENTITIES [Abstract] | |
Schedule of Variable Interest Entities [Table Text Block] | The following table summarizes the carrying amount of the entities’ assets and liabilities included in the Company’s Consolidated Condensed Balance Sheets at March 31, 2017 , and December 31, 2016 (amounts in thousands): March 31, December 31, 2016 Cash and cash equivalents $ 13,188 $ 9,396 Inventory 15,573 11,445 Other current assets 32,723 23,301 Property, plant and equipment, net 34,434 30,448 Other noncurrent assets 5,430 4,955 Total assets $ 101,348 $ 79,545 Current liabilities $ 37,322 $ 22,068 Noncurrent liabilities 5,991 5,350 Total liabilities $ 43,313 $ 27,418 All assets in the above table can only be used to settle obligations of the consolidated VIE to which the respective assets relate. Liabilities are nonrecourse obligations. Amounts presented in the table above are adjusted for intercompany eliminations. The Company holds a variable interest in certain VIEs which are not consolidated because Titan is not the primary beneficiary. The Company's involvement with these entities is in the form of direct equity interests and prepayments and purchases of materials. The maximum exposure to loss represents the loss of assets recognized by Titan relating to non-consolidated entities and amounts due to the non-consolidated assets. The assets and liabilities recognized in Titan's Consolidated Balance Sheets related to Titan's interest in these non-consolidated VIEs and the Company's maximum exposure to loss relating to non-consolidated VIEs as of the dates set forth below were as follows (amounts in thousands): March 31, December 31, 2016 Investments $ 4,762 $ 4,738 Other current assets 1,072 1,039 Total VIE assets 5,834 5,777 Accounts payable 1,121 932 Maximum exposure to loss $ 6,955 $ 6,709 |
OTHER INCOME (Tables)
OTHER INCOME (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Other Income and Expenses [Abstract] | |
Other Income [Table Text Block] | Other income consisted of the following for the periods set forth below (amounts in thousands): Three months ended March 31, 2017 2016 Interest income $ 973 $ 411 Investment gain (loss) related to investments for deferred compensation 850 (217 ) Wheels India Limited equity income 849 497 Building rental income 600 362 Discount amortization on prepaid royalty 328 459 Gain (loss) on sale of assets (262 ) 2,342 Other income (expense) (189 ) 51 $ 3,149 $ 3,905 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Earnings per share (EPS) were as follows as of the dates below (amounts in thousands, except per share data): Three months ended March 31, 2017 2016 Net loss attributable to Titan $ (11,453 ) $ (12,743 ) Redemption value adjustment 941 (5,208 ) Net loss applicable to common shareholders $ (10,512 ) $ (17,951 ) Determination of shares: Weighted average shares outstanding (basic and diluted) 58,572 53,854 Earnings per share: Basic and diluted (0.18 ) (0.33 ) |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Segment Reporting Information [Line Items] | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | he table below presents information about certain operating results, separated by market segments for the three months ended March 31, 2017 and 2016 (amounts in thousands): Three months ended March 31, 2017 2016 Revenues from external customers Agricultural $ 180,516 $ 152,825 Earthmoving/construction 135,619 131,704 Consumer 41,366 37,265 $ 357,501 $ 321,794 Gross profit Agricultural $ 21,716 $ 16,140 Earthmoving/construction 12,649 9,429 Consumer 5,364 2,728 $ 39,729 $ 28,297 Income (loss) from operations Agricultural $ 12,584 $ 8,220 Earthmoving/construction 812 (1,016 ) Consumer 1,454 (850 ) Corporate & Unallocated (21,911 ) (17,892 ) Loss from operations (7,061 ) (11,538 ) Interest expense (7,721 ) (8,512 ) Foreign exchange gain 4,490 4,823 Other income, net 3,149 3,905 Loss before income taxes $ (7,143 ) $ (11,322 ) March 31, December 31, Total assets Agricultural $ 484,971 $ 439,371 Earthmoving/construction 485,997 443,879 Consumer 129,619 140,293 Corporate & Unallocated 225,646 242,353 $ 1,326,233 $ 1,265,896 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value, Measurement Inputs, Disclosure [Table Text Block] | Assets and liabilities measured at fair value on a recurring basis consisted of the following as of the dates set forth below (amounts in thousands): March 31, 2017 December 31, 2016 Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Contractual obligation investments $ 10,518 $ 10,518 $ — $ — $ 9,668 $ 9,668 $ — $ — Derivative financial instruments asset 891 — 891 — 988 — 988 — Preferred stock 171 — — 171 181 — — 181 Total $ 11,580 $ 10,518 $ 891 $ 171 $ 10,837 $ 9,668 $ 988 $ 181 |
Fair Value, Assets and Liabilities Measured on Recurring Basis, Gain (Loss) Included in Earnings [Table Text Block] | The following table presents the changes, during the periods presented, in Titan's Level 3 investments that are measured at fair value on a recurring basis (amounts in thousands): Preferred stock Balance at December 31, 2016 $ 181 Total unrealized losses (10 ) Balance as of March 31, 2017 $ 171 |
ACCUMULATED OTHER COMPREHENSI47
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | Accumulated other comprehensive loss consisted of the following (amounts in thousands): Currency Translation Adjustments Unrecognized Losses and Prior Service Cost Total Balance at January 1, 2017 $ (162,628 ) $ (25,650 ) $ (188,278 ) Currency translation adjustments 9,104 — 9,104 Defined benefit pension plan entries: Amortization of unrecognized losses and prior service cost, net of tax of $(14) — 733 733 Balance at March 31, 2017 $ (153,524 ) $ (24,917 ) $ (178,441 ) |
SUBSIDIARY GUARANTOR FINANCIA48
SUBSIDIARY GUARANTOR FINANCIAL INFORMATION (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Condensed Income Statement [Table Text Block] | (Amounts in thousands) Consolidating Condensed Statements of Operations For the Three Months Ended March 31, 2017 Titan Intl., Inc. (Parent) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net sales $ — $ 143,836 $ 213,665 $ — $ 357,501 Cost of sales 69 126,712 190,991 — 317,772 Gross profit (loss) (69 ) 17,124 22,674 — 39,729 Selling, general and administrative expenses 4,871 17,271 19,196 — 41,338 Research and development expenses — 903 1,940 — 2,843 Royalty expense 417 1,294 898 — 2,609 Income (loss) from operations (5,357 ) (2,344 ) 640 — (7,061 ) Interest expense (7,445 ) — (276 ) — (7,721 ) Intercompany interest income (expense) 581 — (581 ) — — Foreign exchange gain — — 4,490 — 4,490 Other income (loss) 1,280 (145 ) 2,014 — 3,149 Income (loss) before income taxes (10,941 ) (2,489 ) 6,287 — (7,143 ) Provision for income taxes 1,676 174 1,592 — 3,442 Equity in earnings of subsidiaries 4,976 — (4,723 ) (253 ) — Net loss (7,641 ) (2,663 ) (28 ) (253 ) (10,585 ) Net income noncontrolling interests — — 868 — 868 Net loss attributable to Titan $ (7,641 ) $ (2,663 ) $ (896 ) $ (253 ) $ (11,453 ) (Amounts in thousands) Consolidating Condensed Statements of Operations For the Three Months Ended March 31, 2016 Titan Intl., Inc. (Parent) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net sales $ — $ 144,034 $ 177,760 $ — $ 321,794 Cost of sales 494 128,737 164,266 — 293,497 Gross profit (loss) (494 ) 15,297 13,494 — 28,297 Selling, general and administrative expenses 2,382 16,685 15,995 — 35,062 Research and development expenses — 768 1,711 — 2,479 Royalty expense 292 1,196 806 — 2,294 Loss from operations (3,168 ) (3,352 ) (5,018 ) — (11,538 ) Interest expense (8,283 ) — (229 ) — (8,512 ) Intercompany interest income (expense) 290 — (290 ) — — Foreign exchange gain (loss) — (2 ) 4,825 4,823 Other income 362 85 3,458 — 3,905 Income (loss) before income taxes (10,799 ) (3,269 ) 2,746 — (11,322 ) Provision for income taxes 379 191 434 — 1,004 Equity in earnings of subsidiaries 2,443 — (2,005 ) (438 ) — Net income (loss) (8,735 ) (3,460 ) 307 (438 ) (12,326 ) Net income noncontrolling interests — — 417 — 417 Net loss attributable to Titan $ (8,735 ) $ (3,460 ) $ (110 ) $ (438 ) $ (12,743 ) |
Condensed Statement of Comprehensive Income [Table Text Block] | (Amounts in thousands) Consolidating Condensed Statements of Comprehensive Income (Loss) For the Three Months Ended March 31, 2017 Titan Intl., Inc. (Parent) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net loss $ (7,641 ) $ (2,663 ) $ (28 ) $ (253 ) $ (10,585 ) Currency translation adjustment 11,019 — 11,019 (11,019 ) 11,019 Pension liability adjustments, net of tax 733 625 108 (733 ) 733 Comprehensive income (loss) 4,111 (2,038 ) 11,099 (12,005 ) 1,167 Net comprehensive income attributable to redeemable and noncontrolling interests — — 2,783 — 2,783 Comprehensive income (loss) attributable to Titan $ 4,111 $ (2,038 ) $ 8,316 $ (12,005 ) $ (1,616 ) (Amounts in thousands) Consolidating Condensed Statements of Comprehensive Income (Loss) For the Three Months Ended March 31, 2016 Titan Intl., Inc. (Parent) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net income (loss) $ (8,735 ) $ (3,460 ) $ 307 $ (438 ) $ (12,326 ) Currency translation adjustment 17,584 — 17,584 (17,584 ) 17,584 Pension liability adjustments, net of tax 287 265 22 (287 ) 287 Comprehensive income (loss) 9,136 (3,195 ) 17,913 (18,309 ) 5,545 Net comprehensive income attributable to redeemable and noncontrolling interests — — 5,400 — 5,400 Comprehensive income (loss) attributable to Titan $ 9,136 $ (3,195 ) $ 12,513 $ (18,309 ) $ 145 |
Condensed Balance Sheet [Table Text Block] | (Amounts in thousands) Consolidating Condensed Balance Sheets March 31, 2017 Titan Intl., Inc. (Parent) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Assets Cash and cash equivalents $ 72,160 $ 9 $ 58,989 $ — $ 131,158 Certificates of deposit 50,000 — — 50,000 Accounts receivable, net — 64,629 167,615 — 232,244 Inventories — 81,963 210,438 — 292,401 Prepaid and other current assets 8,886 20,655 48,750 — 78,291 Total current assets 131,046 167,256 485,792 — 784,094 Property, plant and equipment, net 4,629 120,311 314,393 — 439,333 Investment in subsidiaries 751,660 — 82,907 (834,567 ) — Other assets 23,174 1,013 78,619 — 102,806 Total assets $ 910,509 $ 288,580 $ 961,711 $ (834,567 ) $ 1,326,233 Liabilities and Equity Short-term debt $ — $ — $ 46,244 $ — $ 46,244 Accounts payable 5,809 22,796 157,558 — 186,163 Other current liabilities 39,261 31,851 58,169 — 129,281 Total current liabilities 45,070 54,647 261,971 — 361,688 Long-term debt 396,094 — 13,612 — 409,706 Other long-term liabilities 28,259 17,958 51,370 — 97,587 Intercompany accounts 77,899 (282,576 ) 204,677 — — Redeemable noncontrolling interest — — 106,825 — 106,825 Titan shareholders' equity 363,187 498,551 327,468 (834,567 ) 354,639 Noncontrolling interests — — (4,212 ) — (4,212 ) Total liabilities and equity $ 910,509 $ 288,580 $ 961,711 $ (834,567 ) $ 1,326,233 (Amounts in thousands) Consolidating Condensed Balance Sheets December 31, 2016 Titan Intl., Inc. (Parent) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Assets Cash and cash equivalents $ 86,190 $ 9 $ 61,628 $ — $ 147,827 Certificates of deposit 50,000 — — — 50,000 Accounts receivable, net — 43,485 135,899 — 179,384 Inventories — 76,823 195,413 — 272,236 Prepaid and other current assets 11,965 21,901 45,868 — 79,734 Total current assets 148,155 142,218 438,808 — 729,181 Property, plant and equipment, net 4,898 124,049 308,254 — 437,201 Investment in subsidiaries 742,679 — 87,385 (830,064 ) — Other assets 23,627 1,118 74,769 — 99,514 Total assets $ 919,359 $ 267,385 $ 909,216 $ (830,064 ) $ 1,265,896 Liabilities and Equity Short-term debt $ 60,148 $ — $ 37,264 $ — $ 97,412 Accounts payable 4,187 14,398 129,670 — 148,255 Other current liabilities 34,140 34,475 51,822 — 120,437 Total current liabilities 98,475 48,873 218,756 — 366,104 Long-term debt 395,852 — 12,908 — 408,760 Other long-term liabilities 27,636 18,473 47,235 — 93,344 Intercompany accounts 94,977 (300,823 ) 205,846 — — Redeemable noncontrolling interest — — 104,809 — 104,809 Titan shareholders' equity 302,419 500,862 323,600 (830,064 ) 296,817 Noncontrolling interests — — (3,938 ) — (3,938 ) Total liabilities and equity $ 919,359 $ 267,385 $ 909,216 $ (830,064 ) $ 1,265,896 |
Condensed Cash Flow Statement [Table Text Block] | (Amounts in thousands) Consolidating Condensed Statements of Cash Flows For the Three Months Ended March, 2017 Titan Intl., Inc. (Parent) Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidated Net cash provided by (used for) operating activities $ (10,008 ) $ 1,541 $ (6,072 ) $ (14,539 ) Cash flows from investing activities: Capital expenditures (358 ) (1,588 ) (6,443 ) (8,389 ) Other, net — 47 527 574 Net cash used for investing activities (358 ) (1,541 ) (5,916 ) (7,815 ) Cash flows from financing activities: Proceeds from borrowings — — 14,635 14,635 Payment on debt (3,393 ) — (6,823 ) (10,216 ) Dividends paid (271 ) — — (271 ) Net cash provided by (used for) financing activities (3,664 ) — 7,812 4,148 Effect of exchange rate change on cash — — 1,537 1,537 Net decrease in cash and cash equivalents (14,030 ) — (2,639 ) (16,669 ) Cash and cash equivalents, beginning of period 86,190 9 61,628 147,827 Cash and cash equivalents, end of period $ 72,160 $ 9 $ 58,989 $ 131,158 (Amounts in thousands) Consolidating Condensed Statements of Cash Flows For the Three Months Ended March 31, 2016 Titan Intl., Inc. (Parent) Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidated Net cash provided by (used for) operating activities $ (11,182 ) $ 1,969 $ 11,546 $ 2,333 Cash flows from investing activities: Capital expenditures 365 (1,969 ) (5,545 ) (7,149 ) Other, net — — 771 771 Net cash provided by (used for) investing activities 365 (1,969 ) (4,774 ) (6,378 ) Cash flows from financing activities: Proceeds from borrowings — — 110 110 Payment on debt — — (7,288 ) (7,288 ) Dividends paid (270 ) — — (270 ) Net cash used for financing activities (270 ) — (7,178 ) (7,448 ) Effect of exchange rate change on cash — — 2,402 2,402 Net increase (decrease) in cash and cash equivalents (11,087 ) — 1,996 (9,091 ) Cash and cash equivalents, beginning of period 142,401 4 57,783 200,188 Cash and cash equivalents, end of period $ 131,314 $ 4 $ 59,779 $ 191,097 |
ACCOUNTING POLICIES (Details)
ACCOUNTING POLICIES (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | |
Organization And Accounting Policies [Line Items] | ||||
Cost of Goods Sold | $ 317,772 | $ 293,497 | ||
Operating Income (Loss) | (7,061) | (11,538) | ||
Net loss | $ (10,585) | $ (12,326) | ||
Basic (in dollars per share) | $ (0.18) | $ (0.33) | ||
Inventory, Net | $ 292,401 | $ 272,236 | ||
Retained earnings | 5,463 | 17,214 | ||
Debt Instrument, Unamortized Discount (Premium), Net | 3,906 | |||
Senior Notes | 396,100 | |||
Long-term Debt | $ 455,950 | 506,172 | ||
Debt Instrument, Interest Rate, Stated Percentage | 5.625% | |||
Debt Instrument, Fair Value Disclosure | $ 407,600 | |||
Common Stock, Dividends, Per Share, Declared | $ 0.005 | $ 0.005 | ||
Senior Secured Notes 6.875 Percent [Member] | ||||
Organization And Accounting Policies [Line Items] | ||||
Senior Notes | $ 400,000 | 400,000 | ||
Long-term Debt | $ 396,094 | 395,852 | ||
Debt Instrument, Interest Rate, Stated Percentage | 6.875% | |||
5.625% convertible senior subordinated notes [Member] | ||||
Organization And Accounting Policies [Line Items] | ||||
Long-term Debt | 60,148 | |||
Accounting Standards Update 2015-03 [Member] | ||||
Organization And Accounting Policies [Line Items] | ||||
Debt Instrument, Unamortized Discount (Premium), Net | 4,148 | |||
Scenario, Previously Reported [Member] | ||||
Organization And Accounting Policies [Line Items] | ||||
Cost of Goods Sold | $ 289,906 | |||
Operating Income (Loss) | (7,947) | |||
Net loss | $ (8,735) | |||
Basic (in dollars per share) | $ (0.27) | |||
Inventory, Net | 269,291 | |||
Retained earnings | 14,269 | |||
Restatement Adjustment [Member] | ||||
Organization And Accounting Policies [Line Items] | ||||
Cost of Goods Sold | $ 3,591 | |||
Operating Income (Loss) | (3,591) | |||
Net loss | $ (3,591) | |||
Basic (in dollars per share) | $ (0.06) | |||
Inventory, Net | 2,945 | |||
Retained earnings | $ 2,945 | $ 6,600 |
ACCOUNTS RECEIVABLE (Details)
ACCOUNTS RECEIVABLE (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Receivables [Abstract] | ||
Accounts Receivable, Gross | $ 235,123 | $ 182,728 |
Allowance for Doubtful Accounts Receivable | 2,879 | 3,344 |
Accounts Receivable, Net | $ 232,244 | $ 179,384 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Inventory Disclosure [Abstract] | ||
Inventory, Raw Materials, Net of Reserves | $ 81,372 | $ 76,380 |
Inventory, Work in Process, Net of Reserves | 39,031 | 32,395 |
Inventory, Finished Goods, Net of Reserves | 171,998 | 163,461 |
Inventory, Gross | 292,401 | 272,236 |
Inventory, Net | $ 292,401 | $ 272,236 |
PROPERTY, PLANT AND EQUIPMENT52
PROPERTY, PLANT AND EQUIPMENT, NET (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | $ 1,023,534 | $ 1,006,399 | |
Less accumulated depreciation | (584,201) | (569,198) | |
Property, Plant and Equipment, Net | 439,333 | 437,201 | |
Depreciation | 13,500 | $ 14,200 | |
Land and Land Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 44,704 | 43,871 | |
Building and Building Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 243,450 | 239,036 | |
Capital Leased Assets, Gross | 3,623 | 3,565 | |
Capital Leases, Lessee Balance Sheet, Assets by Major Class, Accumulated Depreciation | (1,977) | (1,923) | |
Capital Leases, Balance Sheet, Assets by Major Class, Net | 1,646 | 1,642 | |
Machinery and Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 582,708 | 573,717 | |
Capital Leased Assets, Gross | 31,699 | 31,331 | |
Capital Leases, Lessee Balance Sheet, Assets by Major Class, Accumulated Depreciation | (26,415) | (26,502) | |
Capital Leases, Balance Sheet, Assets by Major Class, Net | 5,284 | 4,829 | |
Tools, Dies and Molds [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 108,228 | 106,695 | |
Construction in Progress [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | $ 44,444 | $ 43,080 |
INTANGIBLE ASSETS (Details)
INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 10 years 4 months 24 days | ||
Finite-Lived Customer Relationships, Gross | $ 13,731 | $ 13,171 | |
Finite-Lived Intangible Asset, Useful Life | 7 years 7 months 6 days | ||
Finite-Lived Trademarks, Gross | $ 15,798 | 14,629 | |
Finite-Lived Intangible Assets, Gross | 29,529 | 27,800 | |
Finite-Lived Intangible Assets, Accumulated Amortization | (12,500) | (11,399) | |
Intangible Assets, Net (Excluding Goodwill) | 17,029 | 16,401 | |
Amortization of Intangible Assets | 700 | $ 700 | |
Finite-Lived Intangible Assets, Amortization Expense, Maturity Schedule [Abstract] | |||
April 1 - December 31, 2017 | 1,799 | ||
2,018 | 2,375 | ||
2,019 | 2,237 | ||
2,020 | 2,237 | ||
2,021 | 1,695 | ||
Thereafter | 6,686 | ||
Intangible Assets, Net (Excluding Goodwill) | $ 17,029 | $ 16,401 |
WARRANTY (Details)
WARRANTY (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Product Warranty Liability [Line Items] | ||
Warranty liability at January 1 | $ 17,926 | $ 23,120 |
Provision for warranty liabilities | 1,864 | 1,813 |
Warranty payments made | (1,589) | (2,790) |
Warranty liability at September 30 | $ 18,201 | $ 22,143 |
REVOLVING CREDIT FACILITY AND55
REVOLVING CREDIT FACILITY AND LONG-TERM DEBT (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Debt Instrument [Line Items] | |||
Document Period End Date | Mar. 31, 2017 | ||
Debt Instruments [Abstract] | |||
Senior Notes | $ 396,100,000 | ||
Long-term Debt | 455,950,000 | $ 506,172,000 | |
Capital leases | 758,000 | 902,000 | |
Long-term Debt, Gross | 459,856,000 | 510,333,000 | |
Long-term Debt, Maturities, Repayments of Principal in Next Rolling Twelve Months | 46,244,000 | 97,425,000 | |
Debt Instrument, Unamortized Discount, Noncurrent | 0 | 0 | |
Debt Instrument, Unamortized Discount | (3,906,000) | (4,161,000) | |
Debt Instrument, Unamortized Discount, Current | 0 | (13,000) | |
Debt Instrument, Unamortized Discount (Premium), Net | (3,906,000) | ||
Long-term Debt, Current Maturities | 46,244,000 | 97,412,000 | |
Long-term debt | 409,706,000 | 408,760,000 | |
Maturities of Long-term Debt [Abstract] | |||
April 1 - December 31, 2017 | 46,170,000 | ||
2,018 | 4,062,000 | ||
2,019 | 6,726,000 | ||
2,020 | 402,225,000 | ||
2,021 | 529,000 | ||
Thereafter | $ 144,000 | ||
Debt Instrument, Interest Rate, Stated Percentage | 5.625% | ||
Repayments of Other Debt | $ 10,216,000 | $ 7,288,000 | |
Variable Interest Entity, Members Draw | (101,000) | ||
Line of Credit Facility, Maximum Borrowing Capacity | 75,000,000 | 150,000,000 | |
Letters of Credit Outstanding, Amount | 11,600,000 | ||
Short-term Debt | 46,244,000 | 97,412,000 | |
Debt Conversion, Original Debt, Amount | 60,200,000 | ||
Debt Conversion, Converted Instrument, Amount | $ 58,500,000 | ||
Conversion of Stock, Shares Converted | 5,462,264 | ||
Voltyre-Prom [Member] | |||
Debt Instruments [Abstract] | |||
Other debt | $ 15,100,000 | ||
Senior Secured Notes 6.875 Percent [Member] | |||
Debt Instruments [Abstract] | |||
Senior Notes | 400,000,000 | 400,000,000 | |
Long-term Debt | 396,094,000 | 395,852,000 | |
Debt Instrument, Unamortized Discount | $ (3,906,000) | (4,148,000) | |
Maturities of Long-term Debt [Abstract] | |||
Debt Instrument, Interest Rate, Stated Percentage | 6.875% | ||
5.625% convertible senior subordinated notes [Member] | |||
Debt Instruments [Abstract] | |||
5.625% convertible senior subordinated notes due 2017 | 60,161,000 | ||
Long-term Debt | 60,148,000 | ||
Debt Instrument, Unamortized Discount | (13,000) | ||
Maturities of Long-term Debt [Abstract] | |||
Debt Conversion, Initial Base Conversion Rate, Shares | 93.436 | ||
Repayments of Other Debt | $ 1,700,000 | ||
Debt Conversion, Initial Base Conversion, Amount | 1,000 | ||
Titan Europe [Member] | |||
Debt Instruments [Abstract] | |||
Other Borrowings | 35,858,000 | 33,710,000 | |
Debt Instrument, Unamortized Discount, Noncurrent | $ 0 | 0 | |
Titan Europe [Member] | Minimum [Member] | |||
Maturities of Long-term Debt [Abstract] | |||
Debt Instrument, Interest Rate, Stated Percentage | 5.00% | ||
Titan Europe [Member] | Maximum [Member] | |||
Maturities of Long-term Debt [Abstract] | |||
Debt Instrument, Interest Rate, Stated Percentage | 6.90% | ||
Other Debt Obligations [Member] | |||
Debt Instruments [Abstract] | |||
Other debt | $ 23,240,000 | 15,560,000 | |
Debt Instrument, Unamortized Discount, Noncurrent | 0 | 0 | |
Titan Brazil [Member] | |||
Maturities of Long-term Debt [Abstract] | |||
Short-term Debt | $ 8,100,000 | ||
Voltyre-Prom [Member] | Minimum [Member] | |||
Maturities of Long-term Debt [Abstract] | |||
Debt Instrument, Interest Rate, Stated Percentage | 11.20% | ||
Voltyre-Prom [Member] | Maximum [Member] | |||
Maturities of Long-term Debt [Abstract] | |||
Debt Instrument, Interest Rate, Stated Percentage | 11.30% | ||
Bank of America [Member] | Line of Credit [Member] | |||
Maturities of Long-term Debt [Abstract] | |||
Line of Credit Facility, Current Borrowing Capacity | $ 63,400,000 | ||
Titan Brazil [Member] | Minimum [Member] | |||
Maturities of Long-term Debt [Abstract] | |||
Debt Instrument, Interest Rate, Stated Percentage | 5.50% | ||
Titan Brazil [Member] | Maximum [Member] | |||
Maturities of Long-term Debt [Abstract] | |||
Debt Instrument, Interest Rate, Stated Percentage | 8.00% | ||
Long-term Debt [Member] | |||
Debt Instruments [Abstract] | |||
Long-term debt | $ 413,612,000 | $ 412,908,000 | |
Noncontrolling interest [Member] | |||
Maturities of Long-term Debt [Abstract] | |||
Variable Interest Entity, Members Draw | $ (101,000) |
DERIVATIVE FINANCIAL INSTRUME56
DERIVATIVE FINANCIAL INSTRUMENTS (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2017USD ($) | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative, Gain (Loss) on Derivative, Net | $ 0.1 |
REDEEMABLE NONCONTROLLING INT57
REDEEMABLE NONCONTROLLING INTEREST (Details) - USD ($) $ in Thousands | 3 Months Ended | |||||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | Feb. 08, 2016 | Dec. 31, 2015 | Oct. 04, 2013 | |
Redeemable Noncontrolling Interest [Line Items] | ||||||
Payments to Acquire Additional Interest in Subsidiaries | $ 25,000 | |||||
Noncontrolling Interest, Ownership Percentage by Parent | 43.00% | 30.00% | ||||
Redeemable Noncontrolling Interest, Equity, Carrying Amount | $ 106,825 | 96,774 | $ 104,809 | $ 77,174 | ||
Noncontrolling Interest, Period Increase (Decrease) | 0 | (12,039) | ||||
Net Income (Loss) Attributable to Redeemable Noncontrolling Interest | 620 | 580 | ||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, before Tax, Portion Attributable to Noncontrolling Interest | 2,337 | 1,773 | ||||
Noncontrolling Interest, Change in Redemption Value | (941) | 5,208 | ||||
AOCI Attributable to Parent [Member] | ||||||
Redeemable Noncontrolling Interest [Line Items] | ||||||
Noncontrolling Interest, Period Increase (Decrease) | 3,500 | |||||
Additional paid-in capital [Member] | ||||||
Redeemable Noncontrolling Interest [Line Items] | ||||||
Noncontrolling Interest, Period Increase (Decrease) | $ 8,500 | |||||
Noncontrolling Interest, Change in Redemption Value | $ 941 |
LEASE COMMITMENTS (Details)
LEASE COMMITMENTS (Details) $ in Thousands | Mar. 31, 2017USD ($) |
Operating Leases, Future Minimum Payments Due [Abstract] | |
April 1 - December 31, 2017 | $ 4,970 |
2,018 | 4,571 |
2,019 | 3,612 |
2,020 | 2,297 |
2,021 | 2,354 |
Thereafter | 1,365 |
Total future minimum lease payments | 19,169 |
Capital Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
April 1 - December 31, 2017 | 365 |
2,018 | 212 |
2,019 | 162 |
2,020 | 18 |
2,021 | 2 |
Total future capital lease obligation payments | 759 |
Less amount representing interest | (11) |
Present value of future capital lease obligation payments | $ 748 |
EMPLOYEE BENEFIT PLANS (Details
EMPLOYEE BENEFIT PLANS (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | ||
Defined Benefit Plan, Contributions by Employer | $ 500 | |
Defined Benefit Plan, Estimated Future Employer Contributions in Current Fiscal Year | 2,700 | |
Defined Benefit Plan, Service Cost | 225 | $ 106 |
Defined Benefit Plan, Interest Cost | 1,171 | 1,237 |
Defined Benefit Plan, Expected Return on Plan Assets | (1,369) | (1,393) |
Defined Benefit Plan, Amortization of Prior Service Cost (Credit) | 34 | 34 |
Defined Benefit Plan, Amortization of Gains (Losses) | 674 | 765 |
Defined Benefit Plan, Net Periodic Benefit Cost | $ 735 | $ 749 |
VARIABLE INTEREST ENTITIES (Det
VARIABLE INTEREST ENTITIES (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2016 | Dec. 31, 2015 |
Variable Interest Entity [Line Items] | ||||
Cash and Cash Equivalents, at Carrying Value | $ 131,158 | $ 147,827 | $ 191,097 | $ 200,188 |
Inventory, Net | 292,401 | 272,236 | ||
Property, Plant and Equipment, Net | 439,333 | 437,201 | ||
Other Assets, Noncurrent | 102,806 | 99,514 | ||
Total assets | 1,326,233 | 1,265,896 | ||
Liabilities, Current | 361,688 | 366,104 | ||
Other long-term liabilities | 81,225 | 80,161 | ||
Total liabilities | 868,981 | 868,208 | ||
Accounts Payable, Current | 186,163 | 148,255 | ||
Variable Interest Entity, Not Primary Beneficiary [Member] | ||||
Variable Interest Entity [Line Items] | ||||
Investments | 4,762 | 4,738 | ||
Other Assets, Current | 1,072 | 1,039 | ||
Variable Interest Entity, Nonconsolidated, Carrying Amount, Assets | 5,834 | 5,777 | ||
Accounts Payable, Current | 1,121 | 932 | ||
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount | 6,955 | 6,709 | ||
Variable Interest Entity, Primary Beneficiary [Member] | ||||
Variable Interest Entity [Line Items] | ||||
Cash and Cash Equivalents, at Carrying Value | 13,188 | 9,396 | ||
Inventory, Net | 15,573 | 11,445 | ||
Other Assets, Current | 32,723 | 23,301 | ||
Property, Plant and Equipment, Net | 34,434 | 30,448 | ||
Other Assets, Noncurrent | 5,430 | 4,955 | ||
Total assets | 101,348 | 79,545 | ||
Liabilities, Current | 37,322 | 22,068 | ||
Other long-term liabilities | 5,991 | 5,350 | ||
Total liabilities | $ 43,313 | $ 27,418 |
ROYALTY EXPENSE (Details)
ROYALTY EXPENSE (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Other Income and Expenses [Abstract] | ||
Royalty expense | $ 2,609 | $ 2,294 |
OTHER INCOME (Details)
OTHER INCOME (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Other Income and Expenses [Abstract] | ||
Interest Income, Other | $ 973 | $ 411 |
Gain (Loss) on Investments | 850 | (217) |
Income (Loss) from Equity Method Investments | 849 | 497 |
Rental Income, Nonoperating | 600 | 362 |
Amortization of Prepaid Royalty Discount | 328 | 459 |
Gain (Loss) on Disposition of Assets | (262) | 2,342 |
Other Nonoperating Income (Expense) | (189) | 51 |
Nonoperating Income (Expense) | $ 3,149 | $ 3,905 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Income Tax Disclosure [Abstract] | ||
Provision for income taxes | $ 3,442 | $ 1,004 |
Effective Income Tax Rate, Continuing Operations | (48.00%) | (9.00%) |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Net loss attributable to Titan | $ (11,453) | $ (12,743) |
Noncontrolling Interest, Change in Redemption Value | 941 | (5,208) |
Net loss Available to Common Stockholders, Basic | $ (10,512) | $ (17,951) |
Weighted Average Number of Shares Outstanding, Basic and Diluted | 58,572 | 53,854 |
Earnings Per Share, Basic and Diluted | $ (0.18) | $ (0.33) |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 200 | |
5.625% convertible senior subordinated notes [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 1,000 | 5,600 |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Segment Reporting Information [Line Items] | ||
Revenues | $ 357,501 | $ 321,794 |
Gross profit (loss) | 39,729 | 28,297 |
Operating Income (Loss) | (7,061) | (11,538) |
Interest expense | (7,721) | (8,512) |
Foreign Currency Transaction Gain (Loss), before Tax | 4,490 | 4,823 |
Other income, net | 3,149 | 3,905 |
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | (7,143) | (11,322) |
Agricultural [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 180,516 | 152,825 |
Gross profit (loss) | 21,716 | 16,140 |
Operating Income (Loss) | 12,584 | 8,220 |
Earthmoving/construction [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 135,619 | 131,704 |
Gross profit (loss) | 12,649 | 9,429 |
Operating Income (Loss) | 812 | (1,016) |
Consumer [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 41,366 | 37,265 |
Gross profit (loss) | 5,364 | 2,728 |
Operating Income (Loss) | 1,454 | (850) |
Unallocated Amount to Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Operating Income (Loss) | $ (21,911) | $ (17,892) |
SEGMENT INFORMATION ASSETS (det
SEGMENT INFORMATION ASSETS (details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Segment Reporting Information [Line Items] | ||
Assets | $ 1,326,233 | $ 1,265,896 |
Agricultural [Member] | ||
Segment Reporting Information [Line Items] | ||
Assets | 484,971 | 439,371 |
Earthmoving/construction [Member] | ||
Segment Reporting Information [Line Items] | ||
Assets | 485,997 | 443,879 |
Consumer [Member] | ||
Segment Reporting Information [Line Items] | ||
Assets | 129,619 | 140,293 |
Unallocated Amount to Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Assets | $ 225,646 | $ 242,353 |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Investments for contractual obligations | $ 10,518 | $ 9,668 | |
Derivative Asset | 891 | 988 | |
Other Assets, Fair Value Disclosure | $ 171 | 171 | 181 |
Assets, Fair Value Disclosure | 11,580 | 10,837 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Preferred stock at beginning of period | 181 | ||
Preferred stock at end of period | 171 | ||
Fair Value, Inputs, Level 1 [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Investments for contractual obligations | 10,518 | 9,668 | |
Derivative Asset | 0 | 0 | |
Other Assets, Fair Value Disclosure | 0 | 0 | 0 |
Assets, Fair Value Disclosure | 10,518 | 9,668 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Preferred stock at beginning of period | 0 | ||
Preferred stock at end of period | 0 | ||
Fair Value, Inputs, Level 2 [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Investments for contractual obligations | 0 | 0 | |
Derivative Asset | 891 | 988 | |
Other Assets, Fair Value Disclosure | 0 | 0 | 0 |
Assets, Fair Value Disclosure | 891 | 988 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Preferred stock at beginning of period | 0 | ||
Preferred stock at end of period | 0 | ||
Fair Value, Inputs, Level 3 [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Investments for contractual obligations | 0 | 0 | |
Derivative Asset | 0 | 0 | |
Other Assets, Fair Value Disclosure | 171 | 171 | 181 |
Assets, Fair Value Disclosure | $ 171 | $ 181 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Preferred stock at beginning of period | 181 | ||
Assets, Fair Value Adjustment | (10) | ||
Preferred stock at end of period | $ 171 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - USD ($) $ in Millions | 3 Months Ended | ||||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | Feb. 08, 2016 | Oct. 04, 2013 | |
Related Party Transaction [Line Items] | |||||
Related Party Transaction, Revenues from Transactions with Related Party | $ 0.5 | $ 0.3 | |||
Related Party Transaction, Due from (to) Related Party | 0.4 | $ 0.1 | |||
Related Party Transaction, Expenses from Transactions with Related Party | $ 0.4 | $ 0.6 | |||
Noncontrolling Interest, Ownership Percentage by Parent | 43.00% | 30.00% | |||
Equity Method Investment, Ownership Percentage | 21.40% | ||||
Accounts Payable, Related Parties, Current | $ 0.1 | 0.1 | |||
OTR Group [Member] | |||||
Related Party Transaction [Line Items] | |||||
Related Party Transaction, Purchases from Related Party | $ 0.1 | ||||
Wheels India [Member] | |||||
Related Party Transaction [Line Items] | |||||
Equity Method Investment, Ownership Percentage | 34.20% | ||||
Titan-Yuxiang Wheel [Member] | |||||
Related Party Transaction [Line Items] | |||||
Equity Method Investment, Ownership Percentage | 19.50% | ||||
Accounts Payable, Related Parties, Current | $ 1.1 | $ 0.9 | |||
CITEC [Member] | |||||
Related Party Transaction [Line Items] | |||||
Equity Method Investment, Ownership Percentage | 49.00% |
ACCUMULATED OTHER COMPREHENSI69
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Stockholders' Equity Note [Abstract] | |||
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax | $ (153,524) | $ (162,628) | |
Accumulated Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net of Tax | (24,917) | (25,650) | |
Accumulated other comprehensive loss | (178,441) | (188,278) | $ (188,278) |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax, Portion Attributable to Parent | 9,104 | ||
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Adjustment, Net of Tax | (733) | $ (287) | |
Other Comprehensive (Income) Loss, Amortization Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, for Net Prior Service Cost (Credit), Net of Tax | $ (733) |
SUBSIDIARY GUARANTOR FINANCIA70
SUBSIDIARY GUARANTOR FINANCIAL INFORMATION (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Statement [Abstract] | ||||
Net sales | $ 357,501 | $ 321,794 | ||
Cost of Goods Sold | 317,772 | 293,497 | ||
Gross profit (loss) | 39,729 | 28,297 | ||
Selling, General and Administrative Expense | 41,338 | 35,062 | ||
Research and Development Expense | 2,843 | 2,479 | ||
Royalty expense | 2,609 | 2,294 | ||
Operating Income (Loss) | (7,061) | (11,538) | ||
Interest expense | (7,721) | (8,512) | ||
Intercompany Interest Expense Income | 0 | 0 | ||
Foreign Currency Transaction Gain (Loss), before Tax | 4,490 | 4,823 | ||
Other income (expense) | (3,149) | (3,905) | ||
Income (loss) before income taxes | (7,143) | (11,322) | ||
Provision for income taxes | 3,442 | 1,004 | ||
Income (Loss) from Subsidiaries, Net of Tax | 0 | 0 | ||
Net income (loss) | (10,585) | (12,326) | ||
Net loss attributable to noncontrolling interests | 868 | 417 | ||
Net income (loss) attributable to Titan | (11,453) | (12,743) | ||
Comprehensive Income Statement [Abstract] | ||||
Net income (loss) | (10,585) | (12,326) | ||
Currency translation adjustment, net | 11,019 | 17,584 | ||
Pension liability adjustments, net of tax | 733 | 287 | ||
Comprehensive income (loss) | 1,167 | 5,545 | ||
Net comprehensive (loss), attributable to noncontrolling interests | 2,783 | 5,400 | ||
Comprehensive income (loss) attributable to Titan | (1,616) | 145 | ||
Statement of Financial Position [Abstract] | ||||
Cash and Cash Equivalents, at Carrying Value | 131,158 | 191,097 | $ 147,827 | $ 200,188 |
Certificates of Deposit, at Carrying Value | 50,000 | 50,000 | ||
Accounts Receivable, Net, Current | 232,244 | 179,384 | ||
Inventory, Net | 292,401 | 272,236 | ||
Prepaid Expense and Other Assets, Current | 78,291 | 79,734 | ||
Total current assets | 784,094 | 729,181 | ||
Property, Plant and Equipment, Net | 439,333 | 437,201 | ||
Equity Method Investments | 0 | 0 | ||
Other Assets, Noncurrent | 102,806 | 99,514 | ||
Total assets | 1,326,233 | 1,265,896 | ||
Short-term debt | 46,244 | 97,412 | ||
Accounts Payable, Current | 186,163 | 148,255 | ||
Other Liabilities | 129,281 | 120,437 | ||
Total current liabilities | 361,688 | 366,104 | ||
Long-term debt | 409,706 | 408,760 | ||
Liabilities, Other than Long-term Debt, Noncurrent | 97,587 | 93,344 | ||
Due to Related Parties | 0 | 0 | ||
Redeemable Noncontrolling Interest, Equity, Carrying Amount | 106,825 | 96,774 | 104,809 | 77,174 |
Stockholders' Equity Attributable to Parent | 354,639 | 296,817 | ||
Stockholders' Equity Attributable to Noncontrolling Interest | (4,212) | (3,938) | ||
Total liabilities and equity | 1,326,233 | 1,265,896 | ||
Statement of Cash Flows [Abstract] | ||||
Net cash provided by (used for) operating activities | (14,539) | 2,333 | ||
Capital expenditures | (8,389) | (7,149) | ||
Payments for (Proceeds from) Other Investing Activities | 574 | 771 | ||
Net cash used for investing activities | (7,815) | (6,378) | ||
Proceeds from borrowings | 14,635 | 110 | ||
Repayments of Other Debt | (10,216) | (7,288) | ||
Payments of Dividends, Common Stock | (271) | (270) | ||
Net cash provided by (used for) financing activities | 4,148 | (7,448) | ||
Effect of Exchange Rate on Cash and Cash Equivalents | 1,537 | 2,402 | ||
Cash and Cash Equivalents, Period Increase (Decrease) | (16,669) | (9,091) | ||
Cash and Cash Equivalents, at Carrying Value | 131,158 | 191,097 | 147,827 | 200,188 |
Parent Company [Member] | ||||
Income Statement [Abstract] | ||||
Net sales | 0 | 0 | ||
Cost of Goods Sold | 69 | 494 | ||
Gross profit (loss) | (69) | (494) | ||
Selling, General and Administrative Expense | 4,871 | 2,382 | ||
Research and Development Expense | 0 | 0 | ||
Royalty expense | 417 | 292 | ||
Operating Income (Loss) | (5,357) | (3,168) | ||
Interest expense | (7,445) | (8,283) | ||
Intercompany Interest Expense Income | 581 | 290 | ||
Foreign Currency Transaction Gain (Loss), before Tax | 0 | 0 | ||
Other income (expense) | (1,280) | (362) | ||
Income (loss) before income taxes | (10,941) | (10,799) | ||
Provision for income taxes | 1,676 | 379 | ||
Income (Loss) from Subsidiaries, Net of Tax | 4,976 | 2,443 | ||
Net income (loss) | (7,641) | (8,735) | ||
Net loss attributable to noncontrolling interests | 0 | 0 | ||
Net income (loss) attributable to Titan | (7,641) | (8,735) | ||
Comprehensive Income Statement [Abstract] | ||||
Net income (loss) | (7,641) | (8,735) | ||
Currency translation adjustment, net | 11,019 | 17,584 | ||
Pension liability adjustments, net of tax | 733 | 287 | ||
Comprehensive income (loss) | 4,111 | 9,136 | ||
Net comprehensive (loss), attributable to noncontrolling interests | 0 | 0 | ||
Comprehensive income (loss) attributable to Titan | 4,111 | 9,136 | ||
Statement of Financial Position [Abstract] | ||||
Cash and Cash Equivalents, at Carrying Value | 72,160 | 131,314 | 86,190 | 142,401 |
Certificates of Deposit, at Carrying Value | 50,000 | 50,000 | ||
Accounts Receivable, Net, Current | 0 | 0 | ||
Inventory, Net | 0 | 0 | ||
Prepaid Expense and Other Assets, Current | 8,886 | 11,965 | ||
Total current assets | 131,046 | 148,155 | ||
Property, Plant and Equipment, Net | 4,629 | 4,898 | ||
Equity Method Investments | 751,660 | 742,679 | ||
Other Assets, Noncurrent | 23,174 | 23,627 | ||
Total assets | 910,509 | 919,359 | ||
Short-term debt | 0 | 60,148 | ||
Accounts Payable, Current | 5,809 | 4,187 | ||
Other Liabilities | 39,261 | 34,140 | ||
Total current liabilities | 45,070 | 98,475 | ||
Long-term debt | 396,094 | 395,852 | ||
Liabilities, Other than Long-term Debt, Noncurrent | 28,259 | 27,636 | ||
Due to Related Parties | 77,899 | 94,977 | ||
Redeemable Noncontrolling Interest, Equity, Carrying Amount | 0 | 0 | ||
Stockholders' Equity Attributable to Parent | 363,187 | 302,419 | ||
Stockholders' Equity Attributable to Noncontrolling Interest | 0 | 0 | ||
Total liabilities and equity | 910,509 | 919,359 | ||
Statement of Cash Flows [Abstract] | ||||
Net cash provided by (used for) operating activities | (10,008) | (11,182) | ||
Capital expenditures | (358) | 365 | ||
Payments for (Proceeds from) Other Investing Activities | 0 | 0 | ||
Net cash used for investing activities | (358) | 365 | ||
Proceeds from borrowings | 0 | 0 | ||
Repayments of Other Debt | (3,393) | 0 | ||
Payments of Dividends, Common Stock | (271) | (270) | ||
Net cash provided by (used for) financing activities | (3,664) | (270) | ||
Effect of Exchange Rate on Cash and Cash Equivalents | 0 | 0 | ||
Cash and Cash Equivalents, Period Increase (Decrease) | (14,030) | (11,087) | ||
Cash and Cash Equivalents, at Carrying Value | 72,160 | 131,314 | 86,190 | 142,401 |
Guarantor Subsidiaries [Member] | ||||
Income Statement [Abstract] | ||||
Net sales | 143,836 | 144,034 | ||
Cost of Goods Sold | 126,712 | 128,737 | ||
Gross profit (loss) | 17,124 | 15,297 | ||
Selling, General and Administrative Expense | 17,271 | 16,685 | ||
Research and Development Expense | 903 | 768 | ||
Royalty expense | 1,294 | 1,196 | ||
Operating Income (Loss) | (2,344) | (3,352) | ||
Interest expense | 0 | 0 | ||
Intercompany Interest Expense Income | 0 | 0 | ||
Foreign Currency Transaction Gain (Loss), before Tax | 0 | (2) | ||
Other income (expense) | 145 | (85) | ||
Income (loss) before income taxes | (2,489) | (3,269) | ||
Provision for income taxes | 174 | 191 | ||
Income (Loss) from Subsidiaries, Net of Tax | 0 | 0 | ||
Net income (loss) | (2,663) | (3,460) | ||
Net loss attributable to noncontrolling interests | 0 | 0 | ||
Net income (loss) attributable to Titan | (2,663) | (3,460) | ||
Comprehensive Income Statement [Abstract] | ||||
Net income (loss) | (2,663) | (3,460) | ||
Currency translation adjustment, net | 0 | 0 | ||
Pension liability adjustments, net of tax | 625 | 265 | ||
Comprehensive income (loss) | (2,038) | (3,195) | ||
Net comprehensive (loss), attributable to noncontrolling interests | 0 | 0 | ||
Comprehensive income (loss) attributable to Titan | (2,038) | (3,195) | ||
Statement of Financial Position [Abstract] | ||||
Cash and Cash Equivalents, at Carrying Value | 9 | 4 | 9 | 4 |
Certificates of Deposit, at Carrying Value | 0 | 0 | ||
Accounts Receivable, Net, Current | 64,629 | 43,485 | ||
Inventory, Net | 81,963 | 76,823 | ||
Prepaid Expense and Other Assets, Current | 20,655 | 21,901 | ||
Total current assets | 167,256 | 142,218 | ||
Property, Plant and Equipment, Net | 120,311 | 124,049 | ||
Equity Method Investments | 0 | 0 | ||
Other Assets, Noncurrent | 1,013 | 1,118 | ||
Total assets | 288,580 | 267,385 | ||
Short-term debt | 0 | 0 | ||
Accounts Payable, Current | 22,796 | 14,398 | ||
Other Liabilities | 31,851 | 34,475 | ||
Total current liabilities | 54,647 | 48,873 | ||
Long-term debt | 0 | 0 | ||
Liabilities, Other than Long-term Debt, Noncurrent | 17,958 | 18,473 | ||
Due to Related Parties | (282,576) | (300,823) | ||
Redeemable Noncontrolling Interest, Equity, Carrying Amount | 0 | 0 | ||
Stockholders' Equity Attributable to Parent | 498,551 | 500,862 | ||
Stockholders' Equity Attributable to Noncontrolling Interest | 0 | 0 | ||
Total liabilities and equity | 288,580 | 267,385 | ||
Statement of Cash Flows [Abstract] | ||||
Net cash provided by (used for) operating activities | 1,541 | 1,969 | ||
Capital expenditures | (1,588) | (1,969) | ||
Payments for (Proceeds from) Other Investing Activities | 47 | 0 | ||
Net cash used for investing activities | (1,541) | (1,969) | ||
Proceeds from borrowings | 0 | 0 | ||
Repayments of Other Debt | 0 | 0 | ||
Payments of Dividends, Common Stock | 0 | 0 | ||
Net cash provided by (used for) financing activities | 0 | 0 | ||
Effect of Exchange Rate on Cash and Cash Equivalents | 0 | 0 | ||
Cash and Cash Equivalents, Period Increase (Decrease) | 0 | 0 | ||
Cash and Cash Equivalents, at Carrying Value | 9 | 4 | 9 | 4 |
Non-Guarantor Subsidiaries [Member] | ||||
Income Statement [Abstract] | ||||
Net sales | 213,665 | 177,760 | ||
Cost of Goods Sold | 190,991 | 164,266 | ||
Gross profit (loss) | 22,674 | 13,494 | ||
Selling, General and Administrative Expense | 19,196 | 15,995 | ||
Research and Development Expense | 1,940 | 1,711 | ||
Royalty expense | 898 | 806 | ||
Operating Income (Loss) | 640 | (5,018) | ||
Interest expense | (276) | (229) | ||
Intercompany Interest Expense Income | (581) | (290) | ||
Foreign Currency Transaction Gain (Loss), before Tax | 4,490 | 4,825 | ||
Other income (expense) | (2,014) | (3,458) | ||
Income (loss) before income taxes | 6,287 | 2,746 | ||
Provision for income taxes | 1,592 | 434 | ||
Income (Loss) from Subsidiaries, Net of Tax | (4,723) | (2,005) | ||
Net income (loss) | (28) | 307 | ||
Net loss attributable to noncontrolling interests | 868 | 417 | ||
Net income (loss) attributable to Titan | (896) | (110) | ||
Comprehensive Income Statement [Abstract] | ||||
Net income (loss) | (28) | 307 | ||
Currency translation adjustment, net | 11,019 | 17,584 | ||
Pension liability adjustments, net of tax | 108 | 22 | ||
Comprehensive income (loss) | 11,099 | 17,913 | ||
Net comprehensive (loss), attributable to noncontrolling interests | 2,783 | 5,400 | ||
Comprehensive income (loss) attributable to Titan | 8,316 | 12,513 | ||
Statement of Financial Position [Abstract] | ||||
Cash and Cash Equivalents, at Carrying Value | 58,989 | 59,779 | 61,628 | 57,783 |
Certificates of Deposit, at Carrying Value | 0 | 0 | ||
Accounts Receivable, Net, Current | 167,615 | 135,899 | ||
Inventory, Net | 210,438 | 195,413 | ||
Prepaid Expense and Other Assets, Current | 48,750 | 45,868 | ||
Total current assets | 485,792 | 438,808 | ||
Property, Plant and Equipment, Net | 314,393 | 308,254 | ||
Equity Method Investments | 82,907 | 87,385 | ||
Other Assets, Noncurrent | 78,619 | 74,769 | ||
Total assets | 961,711 | 909,216 | ||
Short-term debt | 46,244 | 37,264 | ||
Accounts Payable, Current | 157,558 | 129,670 | ||
Other Liabilities | 58,169 | 51,822 | ||
Total current liabilities | 261,971 | 218,756 | ||
Long-term debt | 13,612 | 12,908 | ||
Liabilities, Other than Long-term Debt, Noncurrent | 51,370 | 47,235 | ||
Due to Related Parties | 204,677 | 205,846 | ||
Redeemable Noncontrolling Interest, Equity, Carrying Amount | 106,825 | 104,809 | ||
Stockholders' Equity Attributable to Parent | 327,468 | 323,600 | ||
Stockholders' Equity Attributable to Noncontrolling Interest | (4,212) | (3,938) | ||
Total liabilities and equity | 961,711 | 909,216 | ||
Statement of Cash Flows [Abstract] | ||||
Net cash provided by (used for) operating activities | (6,072) | 11,546 | ||
Capital expenditures | (6,443) | (5,545) | ||
Payments for (Proceeds from) Other Investing Activities | 527 | 771 | ||
Net cash used for investing activities | (5,916) | (4,774) | ||
Proceeds from borrowings | 14,635 | 110 | ||
Repayments of Other Debt | (6,823) | (7,288) | ||
Payments of Dividends, Common Stock | 0 | 0 | ||
Net cash provided by (used for) financing activities | 7,812 | (7,178) | ||
Effect of Exchange Rate on Cash and Cash Equivalents | 1,537 | 2,402 | ||
Cash and Cash Equivalents, Period Increase (Decrease) | (2,639) | 1,996 | ||
Cash and Cash Equivalents, at Carrying Value | 58,989 | 59,779 | 61,628 | $ 57,783 |
Consolidation, Eliminations [Member] | ||||
Income Statement [Abstract] | ||||
Net sales | 0 | 0 | ||
Cost of Goods Sold | 0 | 0 | ||
Gross profit (loss) | 0 | 0 | ||
Selling, General and Administrative Expense | 0 | 0 | ||
Research and Development Expense | 0 | 0 | ||
Royalty expense | 0 | 0 | ||
Operating Income (Loss) | 0 | 0 | ||
Interest expense | 0 | 0 | ||
Intercompany Interest Expense Income | 0 | 0 | ||
Foreign Currency Transaction Gain (Loss), before Tax | 0 | |||
Other income (expense) | 0 | 0 | ||
Income (loss) before income taxes | 0 | 0 | ||
Provision for income taxes | 0 | 0 | ||
Income (Loss) from Subsidiaries, Net of Tax | (253) | (438) | ||
Net income (loss) | (253) | (438) | ||
Net loss attributable to noncontrolling interests | 0 | 0 | ||
Net income (loss) attributable to Titan | (253) | (438) | ||
Comprehensive Income Statement [Abstract] | ||||
Net income (loss) | (253) | (438) | ||
Currency translation adjustment, net | (11,019) | (17,584) | ||
Pension liability adjustments, net of tax | (733) | (287) | ||
Comprehensive income (loss) | (12,005) | (18,309) | ||
Net comprehensive (loss), attributable to noncontrolling interests | 0 | 0 | ||
Comprehensive income (loss) attributable to Titan | (12,005) | $ (18,309) | ||
Statement of Financial Position [Abstract] | ||||
Cash and Cash Equivalents, at Carrying Value | 0 | 0 | ||
Certificates of Deposit, at Carrying Value | 0 | |||
Accounts Receivable, Net, Current | 0 | 0 | ||
Inventory, Net | 0 | 0 | ||
Prepaid Expense and Other Assets, Current | 0 | 0 | ||
Total current assets | 0 | 0 | ||
Property, Plant and Equipment, Net | 0 | 0 | ||
Equity Method Investments | (834,567) | (830,064) | ||
Other Assets, Noncurrent | 0 | 0 | ||
Total assets | (834,567) | (830,064) | ||
Short-term debt | 0 | 0 | ||
Accounts Payable, Current | 0 | 0 | ||
Other Liabilities | 0 | 0 | ||
Total current liabilities | 0 | 0 | ||
Long-term debt | 0 | 0 | ||
Liabilities, Other than Long-term Debt, Noncurrent | 0 | 0 | ||
Due to Related Parties | 0 | 0 | ||
Redeemable Noncontrolling Interest, Equity, Carrying Amount | 0 | 0 | ||
Stockholders' Equity Attributable to Parent | (834,567) | (830,064) | ||
Stockholders' Equity Attributable to Noncontrolling Interest | 0 | 0 | ||
Total liabilities and equity | (834,567) | (830,064) | ||
Statement of Cash Flows [Abstract] | ||||
Cash and Cash Equivalents, at Carrying Value | $ 0 | $ 0 |