Document and Entitiy Informatio
Document and Entitiy Information - shares | 9 Months Ended | |
Sep. 30, 2017 | Oct. 24, 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 | Sep. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 59,713,184 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Net sales | $ 370,988 | $ 306,195 | $ 1,092,888 | $ 958,203 |
Cost of sales | 331,323 | 271,275 | 969,932 | 851,268 |
Gross profit | 39,665 | 34,920 | 122,956 | 106,935 |
Selling, general and administrative expenses | 39,753 | 36,348 | 115,553 | 107,712 |
Research and development expenses | 2,457 | 2,597 | 7,908 | 7,790 |
Royalty expense | 2,596 | 2,285 | 7,739 | 6,688 |
Loss from operations | (5,141) | (6,310) | (8,244) | (15,255) |
Interest expense | (7,537) | (8,714) | (22,578) | (25,208) |
Foreign exchange gain | 815 | 398 | 48 | 7,403 |
Other income | 3,041 | 3,578 | 8,398 | 10,532 |
Loss before income taxes | (8,822) | (11,048) | (22,376) | (22,528) |
Provision (benefit) for income taxes | 2,396 | (2,074) | 5,964 | 2,578 |
Net loss | (11,218) | (8,974) | (28,340) | (25,106) |
Net income (loss) attributable to noncontrolling interests | 800 | (966) | 1,424 | (1,099) |
Net loss attributable to Titan | (12,018) | (8,008) | (29,764) | (24,007) |
Redemption value adjustment | 882 | 1,367 | 3,981 | 8,475 |
Net loss applicable to common shareholders | $ (12,900) | $ (9,375) | $ (33,745) | $ (32,482) |
Earnings per common share: | ||||
Basic | $ (0.22) | $ (0.17) | $ (0.57) | $ (0.60) |
Diluted | $ (0.22) | $ (0.17) | $ (0.57) | $ (0.60) |
Average common shares and equivalents outstanding: | ||||
Basic | 59,600 | 53,946 | 59,247 | 53,895 |
Diluted | 59,600 | 53,946 | 59,247 | 53,895 |
Dividends declared per common share: | $ 0.005 | $ 0.005 | $ 0.015 | $ 0.015 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Net loss | $ (11,218) | $ (8,974) | $ (28,340) | $ (25,106) |
Currency translation adjustment | 14,015 | (386) | 33,040 | 21,545 |
Pension liability adjustments, net of tax of $166, $(126), $55, and $(430), respectively | (180) | (465) | (1,902) | (1,200) |
Comprehensive income (loss) | 2,977 | (8,895) | 6,602 | (2,361) |
Net comprehensive income (loss) attributable to redeemable and noncontrolling interests | 1,436 | (679) | 2,657 | 5,427 |
Comprehensive income (loss) attributable to Titan | $ 1,541 | $ (8,216) | $ 3,945 | $ (7,788) |
CONSOLIDATED STATEMENTS OF COM4
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, Tax | $ 166 | $ (126) | $ 55 | $ (430) |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Current assets | ||
Cash and cash equivalents | $ 155,675 | $ 147,827 |
Certificates of deposit | 0 | 50,000 |
Accounts receivable, net | 236,216 | 179,384 |
Inventories | 331,378 | 272,236 |
Prepaid and other current assets | 62,632 | 79,734 |
Total current assets | 785,901 | 729,181 |
Property, plant and equipment, net | 440,078 | 437,201 |
Deferred income taxes | 9,259 | 4,663 |
Other assets | 94,672 | 94,851 |
Total assets | 1,329,910 | 1,265,896 |
Current liabilities | ||
Short-term debt | 36,174 | 97,412 |
Accounts payable | 184,330 | 148,255 |
Other current liabilities | 133,631 | 120,437 |
Total current liabilities | 354,135 | 366,104 |
Long-term debt | 411,230 | 408,760 |
Deferred income taxes | 17,807 | 13,183 |
Other long-term liabilities | 84,611 | 80,161 |
Total liabilities | 867,783 | 868,208 |
Redeemable noncontrolling interest | 111,016 | 104,809 |
Titan stockholders' equity | ||
Common stock ($0.0001 par value, 120,000,000 shares authorized, 60,715,356 issued, 59,700,839 outstanding) | 0 | 0 |
Additional paid-in capital | 534,522 | 479,075 |
Retained earnings (deficit) | (13,445) | 17,214 |
Treasury stock (at cost, 1,014,517 and 1,083,212 shares, respectively) | (9,502) | (10,119) |
Stock reserved for deferred compensation | (1,075) | (1,075) |
Accumulated other comprehensive loss | (154,569) | (188,278) |
Total Titan shareholders’ equity | 355,931 | 296,817 |
Noncontrolling interests | (4,820) | (3,938) |
Total equity | 351,111 | 292,879 |
Total liabilities and equity | $ 1,329,910 | $ 1,265,896 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Sep. 30, 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 | |
Common Stock, shares, outstanding (in shares) | 59,657,340 | |
Treasury Stock, shares (in shares) | 1,014,517 | 1,083,212 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - 9 months ended Sep. 30, 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] |
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 | (28,340) | (29,764) | (29,764) | ||||||
Currency translation adjustment, net | 33,040 | 31,807 | 31,807 | ||||||
Pension liability adjustments, net of tax | 1,902 | 1,902 | 1,902 | ||||||
Dividends declared | (895) | (895) | (895) | ||||||
Note conversion | 5,462,264 | ||||||||
Note conversion | 58,460 | 58,460 | 58,460 | ||||||
Restricted stock awards | 31,798 | ||||||||
Restricted stock awards | 0 | 286 | 286 | 0 | |||||
Redemption value adjustment | 3,981 | (3,981) | (3,981) | ||||||
Stock-based compensation | 1,173 | 1,173 | 1,173 | ||||||
VIE distributions | (1,313) | 0 | (1,313) | ||||||
Issuance of treasury stock under 401(k) plan | 36,897 | ||||||||
Issuance of treasury stock under 401(k) plan | (412) | (81) | 331 | (412) | |||||
Net Income (Loss) Attributable to Nonredeemable Noncontrolling Interest | (28,611) | 1,153 | |||||||
Temporary Equity, Foreign Currency Translation Adjustments | $ 31,085 | (722) | |||||||
Balance, Ending (in shares) at Sep. 30, 2017 | 59,657,340 | 59,700,839 | |||||||
Balance, Ending at Sep. 30, 2017 | $ (351,111) | $ (534,522) | $ 13,445 | $ (9,502) | $ (1,075) | $ 154,569 | $ (355,931) | $ 4,820 | |
Net Income (Loss) Attributable to Redeemable Noncontrolling Interest | 271 | ||||||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, before Tax, Portion Attributable to Noncontrolling Interest | $ 1,955 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Cash flows from operating activities: | ||
Net loss | $ (28,340) | $ (25,106) |
Adjustments to reconcile net loss to net cash provided by (used for) operating activities: | ||
Depreciation and amortization | 44,029 | 44,889 |
Deferred income tax provision | (476) | 172 |
Stock-based compensation | 1,173 | 1,164 |
Issuance of treasury stock under 401(k) plan | 413 | 422 |
Foreign currency translation loss | 1,061 | 9,822 |
(Increase) decrease in assets: | ||
Accounts receivable | (46,715) | 2,788 |
Inventories | (46,083) | 4,805 |
Prepaid and other current assets | 20,046 | (12,314) |
Other assets | 2,948 | 25 |
Increase (decrease) in liabilities: | ||
Accounts payable | 26,372 | 21,344 |
Other current liabilities | 8,821 | 11,315 |
Other liabilities | 1,539 | (5,342) |
Net cash provided by (used for) operating activities | (15,212) | 53,984 |
Cash flows from investing activities: | ||
Capital expenditures | (23,580) | (30,846) |
Certificates of deposit | 50,000 | 0 |
Other | 1,293 | 1,687 |
Net cash provided by (used for) investing activities | 27,713 | (29,159) |
Cash flows from financing activities: | ||
Proceeds from borrowings | 33,540 | 2,390 |
Payment on debt | (41,003) | (14,042) |
Dividends paid | (868) | (810) |
Net cash used for financing activities | (8,331) | (12,462) |
Effect of exchange rate changes on cash | 3,678 | 2,958 |
Net increase in cash and cash equivalents | 7,848 | 15,321 |
Cash and cash equivalents, beginning of period | 147,827 | 200,188 |
Cash and cash equivalents, end of period | 155,675 | 215,509 |
Supplemental information: | ||
Interest paid | 18,360 | 19,827 |
Income taxes paid, net of refunds received | 550 | 4,316 |
Stock Issued During Period, Value, Conversion of Convertible Securities | $ 58,460 | $ 0 |
ACCOUNTING POLICIES
ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
ACCOUNTING POLICIES | ACCOUNTING POLICIES In the opinion of Titan International, Inc. (Titan or the Company), the accompanying unaudited condensed consolidated financial statements contain all adjustments which are normal, recurring, and necessary for a fair statement of the Company's financial position as of September 30, 2017 , and the results of operations and cash flows for the three and nine months ended September 30, 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. Net realizable 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 Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2016, were adjusted as follows: Three Months Ended September 30, 2016 As originally reported Effect of change As adjusted Cost of sales $ 273,219 $ (1,944 ) $ 271,275 Income (loss) from operations (8,254 ) 1,944 (6,310 ) Net income (loss) (10,918 ) 1,944 (8,974 ) Basic and diluted loss per share $ (0.21 ) $ 0.04 $ (0.17 ) Nine Months Ended September 30, 2016 As originally reported Effect of change As adjusted Cost of sales $ 848,264 $ 3,004 $ 851,268 Loss from operations (12,251 ) (3,004 ) (15,255 ) Net loss (22,102 ) (3,004 ) (25,106 ) Basic and diluted loss per share $ (0.55 ) $ (0.05 ) $ (0.60 ) 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 Net sales Sales are presented net of allowances, discounts, and sales 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) were carried at cost of $396.6 million at September 30, 2017 . The fair value of the senior secured notes at September 30, 2017 , as obtained through an independent pricing source, was approximately $410.5 million . Cash dividends The Company declared cash dividends of $0.005 and $0.015 per share of common stock for each of the three and nine months ended September 30, 2017 and 2016 , respectively. The third quarter 2017 cash dividend of $0.005 per share of common stock was paid October 13, 2017, to shareholders of record on September 29, 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, accordingly, Titan has not yet reached a conclusion 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 has determined that it will adopt the guidance using a cumulative-effect adjustment as of the date of adoption. 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, as previously discussed above, 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, as discussed above, 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 reporting 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 adopted this guidance early, effective January 1, 2017. The adoption of this guidance did not have a material effect on the Company's consolidated financial statements. In March 2017, the FASB issued ASU No. 2017-07, "Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost." This update requires an employer to report the service cost component of defined benefit pension cost and postretirement benefit cost in the same line item of the income statement as other compensation costs arising from services rendered by the pertinent employees during the period. The amendments in this update are effective for annual reporting periods beginning after December 15, 2017, including interim periods within those annual reporting periods. The adoption of this guidance is not expected to have a material effect on the Company's consolidated financial statements. |
ACCOUNTS RECEIVABLE
ACCOUNTS RECEIVABLE | 9 Months Ended |
Sep. 30, 2017 | |
Receivables [Abstract] | |
ACCOUNTS RECEIVABLE | ACCOUNTS RECEIVABLE Accounts receivable consisted of the following as of the dates set forth below (amounts in thousands): September 30, December 31, Accounts receivable $ 239,095 $ 182,728 Allowance for doubtful accounts (2,879 ) (3,344 ) Accounts receivable, net $ 236,216 $ 179,384 |
INVENTORIES
INVENTORIES | 9 Months Ended |
Sep. 30, 2017 | |
Inventory Disclosure [Abstract] | |
Inventory Disclosure [Text Block] | INVENTORIES Inventories consisted of the following as of the dates set forth below (amounts in thousands): September 30, December 31, Raw material $ 88,036 $ 76,380 Work-in-process 41,960 32,395 Finished goods 201,382 163,461 $ 331,378 $ 272,236 |
PROPERTY, PLANT AND EQUIPMENT,
PROPERTY, PLANT AND EQUIPMENT, NET | 9 Months Ended |
Sep. 30, 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): September 30, December 31, Land and improvements $ 47,215 $ 43,871 Buildings and improvements 259,087 239,036 Machinery and equipment 604,617 573,717 Tools, dies and molds 112,650 106,695 Construction-in-process 16,956 43,080 1,040,525 1,006,399 Less accumulated depreciation (600,447 ) (569,198 ) $ 440,078 $ 437,201 Depreciation on fixed assets for the nine months ended September 30, 2017 and 2016 , totaled $41.0 million and $42.1 million , respectively. Capital leases included in property, plant, and equipment consisted of the following as of the dates set forth below (amounts in thousands): September 30, December 31, Buildings and improvements $ 4,002 $ 3,565 Less accumulated amortization (2,213 ) (1,923 ) $ 1,789 $ 1,642 Machinery and equipment $ 34,230 $ 31,331 Less accumulated amortization (29,091 ) (26,502 ) $ 5,139 $ 4,829 |
INTANGIBLE ASSETS
INTANGIBLE ASSETS | 9 Months Ended |
Sep. 30, 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) September 30, 2017 September 30, December 31, Amortizable intangible assets: Customer relationships 9.9 $ 13,956 $ 13,171 Patents, trademarks and other 7.5 15,180 14,629 Total at cost 29,136 27,800 Less accumulated amortization (13,338 ) (11,399 ) $ 15,798 $ 16,401 Amortization related to intangible assets for the nine months ended September 30, 2017 and 2016 , totaled $2.2 million and $2.1 million , respectively. Intangible assets are included as a component of other assets in the Condensed Consolidated Balance Sheet. The estimated aggregate amortization expense at September 30, 2017 , for each of the years (or other periods) set forth below was as follows (amounts in thousands): October 1 - December 31, 2017 $ 604 2018 2,257 2019 2,237 2020 2,237 2021 1,563 Thereafter 6,900 $ 15,798 |
WARRANTY
WARRANTY | 9 Months Ended |
Sep. 30, 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 5,377 4,950 Warranty payments made (5,693 ) (8,882 ) Warranty liability, September 30 $ 17,610 $ 19,188 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 | 9 Months Ended |
Sep. 30, 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): September 30, 2017 Principal Balance Unamortized Discount Net Carrying Amount 6.875% senior secured notes due 2020 $ 400,000 $ (3,406 ) $ 396,594 Titan Europe credit facilities 33,541 — 33,541 Other debt 16,296 — 16,296 Capital leases 973 — 973 Total debt 450,810 (3,406 ) 447,404 Less amounts due within one year 36,174 — 36,174 Total long-term debt $ 414,636 $ (3,406 ) $ 411,230 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 principal maturities of long-term debt at September 30, 2017 , for each of the years (or other periods) set forth below were as follows (amounts in thousands): October 1 - December 31, 2017 $ 22,169 2018 11,704 2019 14,082 2020 402,259 2021 455 Thereafter 141 $ 450,810 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 (2017 Notes), which matured on January 15, 2017, into shares of Titan common stock. Immediately prior to maturity, $60.2 million in aggregate principal amount of the 2017 Notes was outstanding, of which holders of $58.5 million in aggregate principal amount of the 2017 Notes, or 97.1% , converted their 2017 Notes into shares of Titan common stock pursuant to the terms of the indenture governing the 2017 Notes. The $58.5 million in principal amount of converted 2017 Notes was converted into 5,462,264 shares of Titan common stock, representing approximately 10% of Titan’s common stock outstanding prior to conversion. Each $1,000 principal amount of the 2017 Notes was convertible into 93.436 shares of Titan common stock. The remaining $1.7 million principal amount of the 2017 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 $33.5 million at September 30, 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 In February 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 the scheduled maturity of the Company’s senior secured notes. From time to time 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 September 30, 2017 , an outstanding letter of credit under the credit facility totaled $12.5 million and the amount available under the facility totaled $62.5 million based upon eligible accounts receivable and inventory balances. During the first nine months of 2017 and at September 30, 2017 , there were no borrowings under the credit facility. Other debt The Company has working capital loans at Titan Pneus do Brasil Ltda and Voltyre-Prom at various interest rates, which totaled $8.9 million and $7.4 million at September 30, 2017 |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS (Notes) | 9 Months Ended |
Sep. 30, 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 and nine months ended September 30, 2017 , the Company recorded currency exchange loss related to these derivatives of $0.2 million and $0.5 million |
REDEEMABLE NONCONTROLLING INTER
REDEEMABLE NONCONTROLLING INTEREST (Notes) | 9 Months Ended |
Sep. 30, 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 the 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 September 30, 2017 . The redemption features of the settlement put option are not solely within the Company’s control and the noncontrolling interest is presented as a redeemable noncontrolling interest separately from total equity in the Condensed Consolidated 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 September 30, 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 271 1,775 Currency translation 1,955 3,330 Redemption value adjustment 3,981 8,475 Balance at September 30 $ 111,016 $ 102,793 This obligation with respect to the settlement put option approximates the cost if all remaining shares in the consortium owning Voltyre-Prom were purchased by the Company on September 30, 2017 |
LEASE COMMITMENTS
LEASE COMMITMENTS | 9 Months Ended |
Sep. 30, 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 September 30, 2017 , future minimum rental commitments under noncancellable operating leases with initial terms of at least one year were as follows (amounts in thousands): October 1 - December 31, 2017 $ 1,960 2018 5,489 2019 4,478 2020 2,599 2021 1,908 Thereafter 1,952 Total future minimum lease payments $ 18,386 At September 30, 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 September 30, 2017 , total future capital lease obligations relating to these leases were as follows (amounts in thousands): October 1 - December 31, 2017 $ 139 2018 662 2019 150 2020 20 2021 2 Total future capital lease obligation payments 973 Less amount representing interest (12 ) Present value of future capital lease obligation payments $ 961 |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 9 Months Ended |
Sep. 30, 2017 | |
Retirement Benefits [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 $2.1 million to the pension plans during the nine months ended September 30, 2017 , and expects to contribute approximately $1.2 million to the pension plans during the remainder of 2017. The components of net periodic pension cost consisted of the following for the periods set forth below (amounts in thousands): Three months ended Nine months ended September 30, September 30, 2017 2016 2017 2016 Service cost $ 129 $ 74 $ 482 $ 386 Interest cost 1,197 1,230 3,531 3,700 Expected return on assets (1,372 ) (1,396 ) (4,109 ) (4,184 ) Amortization of unrecognized prior service cost 34 35 102 103 Amortization of net unrecognized loss 663 762 1,992 2,289 Net periodic pension cost $ 651 $ 705 $ 1,998 $ 2,294 |
VARIABLE INTEREST ENTITIES (Not
VARIABLE INTEREST ENTITIES (Notes) | 9 Months Ended |
Sep. 30, 2017 | |
Variable Interest Entity, Consolidated, Carrying Amount, Assets and Liabilities, Net [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 (loss) attributable to noncontrolling interests” in the Condensed Consolidated Statements of Operations and “Noncontrolling interests” in the Condensed Consolidated Balance Sheets. The following table summarizes the carrying amount of the entities’ assets and liabilities included in the Company’s Condensed Consolidated Balance Sheets at September 30, 2017 , and December 31, 2016 (amounts in thousands): September 30, December 31, 2016 Cash and cash equivalents $ 12,251 $ 9,396 Inventory 13,862 11,445 Other current assets 22,099 23,301 Property, plant and equipment, net 34,131 30,448 Other noncurrent assets 8,431 4,955 Total assets $ 90,774 $ 79,545 Current liabilities $ 23,744 $ 22,068 Noncurrent liabilities 9,759 5,350 Total liabilities $ 33,503 $ 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): September 30, December 31, 2016 Investments $ 3,505 $ 4,738 Other current assets 1,224 1,039 Total VIE assets 4,729 5,777 Accounts payable 1,706 932 Maximum exposure to loss $ 6,435 $ 6,709 |
ROYALTY EXPENSE
ROYALTY EXPENSE | 9 Months Ended |
Sep. 30, 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 three months ended September 30, 2017 and 2016 , respectively. Royalty expenses recorded were $7.7 million and $6.7 million for the nine months ended September 30, 2017 and 2016 |
OTHER INCOME
OTHER INCOME | 9 Months Ended |
Sep. 30, 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 Nine months ended September 30, September 30, 2017 2016 2017 2016 Equity investment income $ 1,391 $ 840 $ 2,741 $ 2,423 Interest income 872 929 2,646 2,182 Investment gain related to investments for deferred compensation 480 560 1,827 52 Building rental income 594 557 1,789 1,528 Discount amortization on prepaid royalty 180 389 689 1,168 Gain (loss) on sale of assets (542 ) (71 ) (734 ) 2,271 Other income (expense) 66 374 (560 ) 908 $ 3,041 $ 3,578 $ 8,398 $ 10,532 |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The Company recorded income tax expense (benefit) of $2.4 million and $(2.1) million for the quarters ended September 30, 2017 and 2016 , respectively. For the nine months ended September 30, 2017 and 2016 , the Company recorded income tax expense of $6.0 million and $2.6 million , respectively. The Company's effective income tax rate was (27)% and 16% for the quarters ended September 30, 2017 and 2016 , and (27)% and (13)% for the nine months ended September 30, 2017 and 2016 , respectively. The Company’s 2017 income tax expense and rate differed 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 were non-deductible royalty expenses and statutorily required income adjustments made in certain foreign jurisdictions that negatively impacted the tax rate for the three and nine months ended September 30, 2017 . During the second quarter of 2017, the IRS income tax audit for tax years 2010 through 2014 was settled, which did not result in any material change to income tax expense. The Company’s 2016 income tax expense and rate differed 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, the Company adjusted its net uncertain tax positions which resulted in a tax benefit of $2.5 million . |
EARNINGS PER SHARE
EARNINGS PER SHARE | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE Earnings per share (EPS) were as follows for the periods presented below (amounts in thousands, except per share data): Three months ended Nine months ended September 30, September 30, 2017 2016 2017 2016 Net loss attributable to Titan $ (12,018 ) $ (8,008 ) $ (29,764 ) $ (24,007 ) Redemption value adjustment (882 ) (1,367 ) (3,981 ) (8,475 ) Net loss applicable to common shareholders $ (12,900 ) $ (9,375 ) $ (33,745 ) $ (32,482 ) Determination of shares: Weighted average shares outstanding (basic and diluted) 59,600 53,946 59,247 53,895 Earnings per share: Basic and diluted (0.22 ) (0.17 ) (0.57 ) (0.60 ) The effect of stock options, shares held by certain trusts, and convertible notes has been excluded for the nine months ended September 30, 2017 and 2016, as the effect would have been antidilutive. The weighted average share amount excluded for stock options and shares held by certain trusts was 0.2 million for each of the three and nine months ended September 30, 2017 , and 0.3 million and 0.2 million for the three and nine months ended September 30, 2016 , respectively. The weighted average share amount excluded for convertible notes totaled 0.3 million shares for the nine months ended September 30, 2017 , and 5.6 million shares for each of the three and nine months ended and September 30, 2016 |
LITIGATION
LITIGATION | 9 Months Ended |
Sep. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
LITIGATION | LITIGATION The Company is a party to routine legal proceedings arising out of the normal course of business. Although it is not possible to predict with certainty the outcome of these unresolved legal actions or the range of possible loss, the Company believes at this time that none of these actions, individually or in the aggregate, will have a material adverse effect on the consolidated financial condition, results of operations, or cash flows of the Company. However, due to the difficult nature of predicting unresolved and future legal claims, the Company cannot anticipate or predict the material adverse effect on its consolidated financial condition, results of operations, or cash flows as a result of efforts to comply with, or liabilities pertaining to, legal judgments. Two of Titan’s subsidiaries are currently involved in litigation concerning environmental laws and regulations. In October 2010, the United States of America, on behalf of the Environmental Protection Agency (EPA), filed a complaint against Dico, Inc. (Dico) and Titan Tire Corporation (Titan Tire) in the U.S. District Court for the Southern District of Iowa, wherein the EPA sought civil penalties, punitive damages, and response costs against Dico and Titan Tire pursuant to the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (CERCLA). In June 2015, Titan Tire and Dico, Inc. appealed the U.S. District Court’s order granting the EPA’s motion for summary judgment that found Dico and Titan Tire liable for civil penalties and response costs for violating CERCLA and Dico liable for civil penalties and punitive damages for violating an EPA Administrative Order. In December 2015, the United States Court of Appeals for the Eighth Circuit reversed the District Court’s summary judgment order with respect to “arranger” liability for Titan Tire and Dico under CERCLA and the imposition of punitive damages against Dico for violating the EPA Administrative Order, but affirmed the summary judgment order imposing civil penalties in the amount of $1.62 million against Dico for violating the EPA Administrative Order. The case was remanded to the District Court for a new trial on the remaining issues. The trial was held in April 2017. On September 5, 2017, the District Court issued an order: (a) concluding Titan Tire and Dico arranged for the disposal of a hazardous substance in violation of 42 U.S.C. § 9607(a); (b) holding Titan Tire and Dico jointly and severally liable for $5.45 million in response costs previously incurred and reported by the United States relating to the alleged violation, including enforcement costs and attorney’s fees; and (c) awarding a declaratory judgment holding Titan Tire and Dico jointly and severally liable for all additional response costs previously incurred but not yet reported or to be incurred in the future, including enforcement costs and attorney’s fees. The District Court also held Dico liable for $5.45 million in punitive damages under 42 U.S.C. § 9607(c)(3) for violating a unilateral administrative order. The punitive damages award does not apply to Titan Tire. The Company accrued a contingent liability of $6.5 million , representing $5.45 million in costs incurred by the United States and $1.05 million |
SEGMENT INFORMATION
SEGMENT INFORMATION | 9 Months Ended |
Sep. 30, 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 sales, expenses, and income from operations are determined based on the results of operations for the operating units of the Company's 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 and nine months ended September 30, 2017 and 2016 (amounts in thousands): Three months ended Nine months ended September 30, September 30, 2017 2016 2017 2016 Net sales Agricultural $ 170,895 $ 138,568 $ 524,335 $ 438,108 Earthmoving/construction 156,442 128,917 443,030 401,649 Consumer 43,651 38,710 125,523 118,446 $ 370,988 $ 306,195 $ 1,092,888 $ 958,203 Gross profit Agricultural $ 18,930 $ 18,592 $ 63,542 $ 57,684 Earthmoving/construction 14,534 11,553 41,170 36,354 Consumer 6,201 4,775 18,244 12,897 $ 39,665 $ 34,920 $ 122,956 $ 106,935 Income (loss) from operations Agricultural $ 10,056 $ 9,891 $ 36,721 $ 32,718 Earthmoving/construction 2,985 807 5,853 4,060 Consumer 3,060 1,331 8,001 2,072 Corporate & Unallocated (21,242 ) (18,339 ) (58,819 ) (54,105 ) Loss from operations (5,141 ) (6,310 ) (8,244 ) (15,255 ) Interest expense (7,537 ) (8,714 ) (22,578 ) (25,208 ) Foreign exchange gain 815 398 48 7,403 Other income, net 3,041 3,578 8,398 10,532 Loss before income taxes $ (8,822 ) $ (11,048 ) $ (22,376 ) $ (22,528 ) Assets by segment were as follows as of the dates set forth below (amounts in thousands): September 30, December 31, Total assets Agricultural $ 482,958 $ 439,371 Earthmoving/construction 533,112 443,879 Consumer 141,496 140,293 Corporate & Unallocated 172,344 242,353 $ 1,329,910 $ 1,265,896 |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 9 Months Ended |
Sep. 30, 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): September 30, 2017 December 31, 2016 Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Contractual obligation investments $ 11,494 $ 11,494 $ — $ — $ 9,668 $ 9,668 $ — $ — Derivative financial instruments asset 566 — 566 — 988 — 988 — Preferred stock 145 — — 145 181 — — 181 Total $ 12,205 $ 11,494 $ 566 $ 145 $ 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 (36 ) Balance as of September 30, 2017 $ 145 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 9 Months Ended |
Sep. 30, 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 the 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; F.B.T. Enterprises, Inc.; Green Carbon, Inc.; Silverstone, Inc.; and OTR Wheel Engineering, Inc. Sales of Titan products to these companies were approximately $0.3 million and $1.3 million for the three and nine months ended September 30, 2017 , respectively, as compared to $0.2 million and $0.6 million for the three and nine months ended September 30, 2016 , respectively. Titan had trade receivables due from these companies of approximately $0.2 million at September 30, 2017 , and approximately $0.1 million at December 31, 2016 . Titan had product purchases from these companies of approximately $0.2 million and $0.4 million for the three and nine months ended September 30, 2017 , respectively, as compared to purchases of approximately $0.1 million and $0.3 million for the three and nine months ended September 30, 2016 , respectively. Sales commissions paid to the above companies were approximately $0.7 million and $1.4 million for the three and nine months ended September 30, 2017 , respectively, as compared to $0.4 million and $1.4 million for the three and nine months ended September 30, 2016 , respectively. The Company sells products to Valuepart and Track Solutions Pty Ltd., which is controlled by relatives of a member of management of a Titan subsidiary. Sales of Titan products to this company were approximately $0.1 million and $0.2 million for the three and nine months ended September 30, 2017 , respectively. 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 Shareholders’ 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 September 30, 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 $1.7 million at September 30, 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) | 9 Months Ended |
Sep. 30, 2017 | |
Stockholders' Equity Note [Abstract] | |
Comprehensive Loss Note | 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 July 1, 2017 $ (144,200 ) $ (23,928 ) $ (168,128 ) Currency translation adjustments 13,379 — 13,379 Defined benefit pension plan entries: Amortization of unrecognized losses and prior service cost, net of tax of $166 — 180 180 Balance at September 30, 2017 $ (130,821 ) $ (23,748 ) $ (154,569 ) Currency Translation Adjustments Unrecognized Losses and Prior Service Cost Total Balance at January 1, 2017 $ (162,628 ) $ (25,650 ) $ (188,278 ) Currency translation adjustments 31,807 — 31,807 Defined benefit pension plan entries: Amortization of unrecognized losses and prior service cost, net of tax of $55 — 1,902 1,902 Balance at September 30, 2017 $ (130,821 ) $ (23,748 ) $ (154,569 ) |
OTHER EVENTS (Notes)
OTHER EVENTS (Notes) | 9 Months Ended |
Sep. 30, 2017 | |
Unusual or Infrequent Items, or Both [Abstract] | |
Unusual or Infrequent Items, or Both, Disclosure [Text Block] | OTHER EVENTS |
SUBSIDIARY GUARANTOR FINANCIAL
SUBSIDIARY GUARANTOR FINANCIAL INFORMATION | 9 Months Ended |
Sep. 30, 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) Condensed Consolidating Statements of Operations For the Three Months Ended September 30, 2017 Titan Intl., Inc. (Parent) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net sales $ — $ 138,557 $ 232,431 $ — $ 370,988 Cost of sales 99 122,129 209,095 — 331,323 Gross profit (loss) (99 ) 16,428 23,336 — 39,665 Selling, general and administrative expenses 2,100 12,594 25,059 — 39,753 Research and development expenses — 972 1,485 — 2,457 Royalty expense 217 1,435 944 — 2,596 Income (loss) from operations (2,416 ) 1,427 (4,152 ) — (5,141 ) Interest expense (7,231 ) — (306 ) — (7,537 ) Intercompany interest income (expense) 606 983 (1,589 ) — — Foreign exchange gain (loss) (2 ) 71 746 — 815 Other income (expense) 968 (33 ) 2,106 — 3,041 Income (loss) before income taxes (8,075 ) 2,448 (3,195 ) — (8,822 ) Provision for income taxes 889 994 513 — 2,396 Equity in earnings of subsidiaries (2,252 ) — (2,306 ) 4,558 — Net income (loss) (11,216 ) 1,454 (6,014 ) 4,558 (11,218 ) Net income noncontrolling interests — — 800 — 800 Net income (loss) attributable to Titan $ (11,216 ) $ 1,454 $ (6,814 ) $ 4,558 $ (12,018 ) (Amounts in thousands) Condensed Consolidating Statements of Operations For the Three Months Ended September 30, 2016 Titan Intl., Inc. (Parent) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net sales $ — $ 114,743 $ 191,452 $ — $ 306,195 Cost of sales 87 99,573 171,615 — 271,275 Gross profit (loss) (87 ) 15,170 19,837 — 34,920 Selling, general and administrative expenses 2,556 15,407 18,385 — 36,348 Research and development expenses — 776 1,821 — 2,597 Royalty expense 125 1,296 864 — 2,285 Loss from operations (2,768 ) (2,309 ) (1,233 ) — (6,310 ) Interest expense (8,288 ) — (426 ) — (8,714 ) Intercompany interest income (expense) 470 — (470 ) — — Foreign exchange gain — — 398 398 Other income 1,256 62 2,260 — 3,578 Income (loss) before income taxes (9,330 ) (2,247 ) 529 — (11,048 ) Provision (benefit) for income taxes (1,935 ) (1,448 ) 1,309 — (2,074 ) Equity in earnings of subsidiaries (3,523 ) — (4,037 ) 7,560 — Net income (loss) (10,918 ) (799 ) (4,817 ) 7,560 (8,974 ) Net loss noncontrolling interests — — (966 ) — (966 ) Net income (loss) attributable to Titan $ (10,918 ) $ (799 ) $ (3,851 ) $ 7,560 $ (8,008 ) (Amounts in thousands) Condensed Consolidating Statements of Operations For the Nine Months Ended September 30, 2017 Titan Intl., Inc. (Parent) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net sales $ — $ 429,636 $ 663,252 $ — $ 1,092,888 Cost of sales 256 378,875 590,801 — 969,932 Gross profit (loss) (256 ) 50,761 72,451 — 122,956 Selling, general and administrative expenses 10,038 43,906 61,609 — 115,553 Research and development expenses — 2,825 5,083 — 7,908 Royalty expense 883 4,140 2,716 — 7,739 Income (loss) from operations (11,177 ) (110 ) 3,043 — (8,244 ) Interest expense (21,909 ) — (669 ) — (22,578 ) Intercompany interest income (expense) 1,775 2,930 (4,705 ) — — Foreign exchange gain (loss) (2 ) 30 20 — 48 Other income (expense) 3,179 (203 ) 5,422 — 8,398 Income (loss) before income taxes (28,134 ) 2,647 3,111 — (22,376 ) Provision (benefit) for income taxes (620 ) 2,489 4,095 — 5,964 Equity in earnings of subsidiaries 2,120 — (10,715 ) 8,595 — Net income (loss) (25,394 ) 158 (11,699 ) 8,595 (28,340 ) Net income noncontrolling interests — — 1,424 — 1,424 Net income (loss) attributable to Titan $ (25,394 ) $ 158 $ (13,123 ) $ 8,595 $ (29,764 ) (Amounts in thousands) Condensed Consolidating Statements of Operations For the Nine Months Ended September 30, 2016 Titan Intl., Inc. (Parent) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net sales $ — $ 384,917 $ 573,286 $ — $ 958,203 Cost of sales 659 334,044 516,565 — 851,268 Gross profit (loss) (659 ) 50,873 56,721 — 106,935 Selling, general and administrative expenses 7,907 47,879 51,926 — 107,712 Research and development expenses — 2,221 5,569 — 7,790 Royalty expense 542 3,573 2,573 — 6,688 Loss from operations (9,108 ) (2,800 ) (3,347 ) — (15,255 ) Interest expense (24,382 ) — (826 ) — (25,208 ) Intercompany interest income (expense) 1,122 — (1,122 ) — — Foreign exchange gain — 202 7,201 7,403 Other income 1,864 220 8,448 — 10,532 Income (loss) before income taxes (30,504 ) (2,378 ) 10,354 — (22,528 ) Provision (benefit) for income taxes (2,205 ) 417 4,366 — 2,578 Equity in earnings of subsidiaries 6,197 — (6,243 ) 46 — Net income (loss) (22,102 ) (2,795 ) (255 ) 46 (25,106 ) Net loss noncontrolling interests — — (1,099 ) — (1,099 ) Net income (loss) attributable to Titan $ (22,102 ) $ (2,795 ) $ 844 $ 46 $ (24,007 ) (Amounts in thousands) Condensed Consolidating Statements of Comprehensive Income (Loss) For the Three Months Ended September 30, 2017 Titan Intl., Inc. (Parent) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net income (loss) $ (11,216 ) $ 1,454 $ (6,014 ) $ 4,558 $ (11,218 ) Currency translation adjustment 14,015 — 14,015 (14,015 ) 14,015 Pension liability adjustments, net of tax 180 625 (445 ) (180 ) 180 Comprehensive income (loss) 2,979 2,079 7,556 (9,637 ) 2,977 Net comprehensive income attributable to redeemable and noncontrolling interests — — 1,436 — 1,436 Comprehensive income (loss) attributable to Titan $ 2,979 $ 2,079 $ 6,120 $ (9,637 ) $ 1,541 (Amounts in thousands) Condensed Consolidating Statements of Comprehensive Income (Loss) For the Three Months Ended September 30, 2016 Titan Intl., Inc. (Parent) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net income (loss) $ (10,918 ) $ (799 ) $ (4,817 ) $ 7,560 $ (8,974 ) Currency translation adjustment (386 ) — (386 ) 386 (386 ) Pension liability adjustments, net of tax 465 734 (269 ) (465 ) 465 Comprehensive income (loss) (10,839 ) (65 ) (5,472 ) 7,481 (8,895 ) Net comprehensive loss attributable to redeemable and noncontrolling interests — — (679 ) — (679 ) Comprehensive income (loss) attributable to Titan $ (10,839 ) $ (65 ) $ (4,793 ) $ 7,481 $ (8,216 ) (Amounts in thousands) Condensed Consolidating Statements of Comprehensive Income (Loss) For the Nine Months Ended September 30, 2017 Titan Intl., Inc. (Parent) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net income (loss) $ (25,394 ) $ 158 $ (11,699 ) $ 8,595 $ (28,340 ) Currency translation adjustment 33,040 — 33,040 (33,040 ) 33,040 Pension liability adjustments, net of tax 1,902 1,875 27 (1,902 ) 1,902 Comprehensive income (loss) 9,548 2,033 21,368 (26,347 ) 6,602 Net comprehensive income attributable to redeemable and noncontrolling interests — — 2,657 — 2,657 Comprehensive income (loss) attributable to Titan $ 9,548 $ 2,033 $ 18,711 $ (26,347 ) $ 3,945 (Amounts in thousands) Condensed Consolidating Statements of Comprehensive Income (Loss) For the Nine Months Ended September 30, 2016 Titan Intl., Inc. (Parent) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net income (loss) $ (22,102 ) $ (2,795 ) $ (255 ) $ 46 $ (25,106 ) Currency translation adjustment 21,545 — (21,545 ) 21,545 21,545 Pension liability adjustments, net of tax 1,200 2,202 (1,002 ) (1,200 ) 1,200 Comprehensive income (loss) 643 (593 ) (22,802 ) 20,391 (2,361 ) Net comprehensive income attributable to redeemable and noncontrolling interests — — 5,427 — 5,427 Comprehensive income (loss) attributable to Titan $ 643 $ (593 ) $ (28,229 ) $ 20,391 $ (7,788 ) (Amounts in thousands) Condensed Consolidating Balance Sheets September 30, 2017 Titan Intl., Inc. (Parent) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Assets Cash and cash equivalents $ 77,903 $ 10 $ 77,762 $ — $ 155,675 Accounts receivable, net — 65,141 171,075 — 236,216 Inventories — 90,857 240,521 — 331,378 Prepaid and other current assets 6,652 21,131 34,849 — 62,632 Total current assets 84,555 177,139 524,207 — 785,901 Property, plant and equipment, net 2,771 112,878 324,429 — 440,078 Investment in subsidiaries 772,243 — 75,145 (847,388 ) — Other assets 19,155 969 83,807 — 103,931 Total assets $ 878,724 $ 290,986 $ 1,007,588 $ (847,388 ) $ 1,329,910 Liabilities and Equity Short-term debt $ — $ — $ 36,174 $ — $ 36,174 Accounts payable (973 ) 21,547 163,756 — 184,330 Other current liabilities 33,431 31,579 68,621 — 133,631 Total current liabilities 32,458 53,126 268,551 — 354,135 Long-term debt 396,594 — 14,636 — 411,230 Other long-term liabilities 23,524 16,516 62,378 — 102,418 Intercompany accounts 61,666 (278,187 ) 216,521 — — Redeemable noncontrolling interest — — 111,016 — 111,016 Titan shareholders' equity 364,482 499,531 339,306 (847,388 ) 355,931 Noncontrolling interests — — (4,820 ) — (4,820 ) Total liabilities and equity $ 878,724 $ 290,986 $ 1,007,588 $ (847,388 ) $ 1,329,910 (Amounts in thousands) Condensed Consolidating 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) Condensed Consolidating Statements of Cash Flows For the Nine Months Ended September 30, 2017 Titan Intl., Inc. (Parent) Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidated Net cash provided by (used for) operating activities $ (53,211 ) $ 4,107 $ 33,892 $ (15,212 ) Cash flows from investing activities: Capital expenditures (815 ) (4,472 ) (18,293 ) (23,580 ) Certificates of deposit 50,000 — — 50,000 Other, net — 366 927 1,293 Net cash provided by (used for) investing activities 49,185 (4,106 ) (17,366 ) 27,713 Cash flows from financing activities: Proceeds from borrowings — — 33,540 33,540 Payment on debt (3,393 ) — (37,610 ) (41,003 ) Dividends paid (868 ) — — (868 ) Net cash used for financing activities (4,261 ) — (4,070 ) (8,331 ) Effect of exchange rate change on cash — — 3,678 3,678 Net increase (decrease) in cash and cash equivalents (8,287 ) 1 16,134 7,848 Cash and cash equivalents, beginning of period 86,190 9 61,628 147,827 Cash and cash equivalents, end of period $ 77,903 $ 10 $ 77,762 $ 155,675 (Amounts in thousands) Condensed Consolidating Statements of Cash Flows For the Nine Months Ended September 30, 2016 Titan Intl., Inc. (Parent) Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidated Net cash provided by operating activities $ 4,154 $ 5,553 $ 44,277 $ 53,984 Cash flows from investing activities: Capital expenditures (657 ) (5,616 ) (24,573 ) (30,846 ) Other, net — 73 1,614 1,687 Net cash used for investing activities (657 ) (5,543 ) (22,959 ) (29,159 ) Cash flows from financing activities: Proceeds from borrowings — — 2,390 2,390 Payment on debt — — (14,042 ) (14,042 ) Dividends paid (810 ) — — (810 ) Net cash used for financing activities (810 ) — (11,652 ) (12,462 ) Effect of exchange rate change on cash — — 2,958 2,958 Net increase in cash and cash equivalents 2,687 10 12,624 15,321 Cash and cash equivalents, beginning of period 142,401 4 57,783 200,188 Cash and cash equivalents, end of period $ 145,088 $ 14 $ 70,407 $ 215,509 |
ACCOUNTING POLICIES (Policies)
ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 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. Net realizable 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 Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2016, were adjusted as follows: Three Months Ended September 30, 2016 As originally reported Effect of change As adjusted Cost of sales $ 273,219 $ (1,944 ) $ 271,275 Income (loss) from operations (8,254 ) 1,944 (6,310 ) Net income (loss) (10,918 ) 1,944 (8,974 ) Basic and diluted loss per share $ (0.21 ) $ 0.04 $ (0.17 ) Nine Months Ended September 30, 2016 As originally reported Effect of change As adjusted Cost of sales $ 848,264 $ 3,004 $ 851,268 Loss from operations (12,251 ) (3,004 ) (15,255 ) Net loss (22,102 ) (3,004 ) (25,106 ) Basic and diluted loss per share $ (0.55 ) $ (0.05 ) $ (0.60 ) 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] | alesSales are presented net of allowances, discounts, and sales 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) were carried at cost of $396.6 million at September 30, 2017 . The fair value of the senior secured notes at September 30, 2017 , as obtained through an independent pricing source, was approximately $410.5 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, accordingly, Titan has not yet reached a conclusion 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 has determined that it will adopt the guidance using a cumulative-effect adjustment as of the date of adoption. 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, as previously discussed above, 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, as discussed above, 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 reporting 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 adopted this guidance early, effective January 1, 2017. The adoption of this guidance did not have a material effect on the Company's consolidated financial statements. In March 2017, the FASB issued ASU No. 2017-07, "Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost." This update requires an employer to report the service cost component of defined benefit pension cost and postretirement benefit cost in the same line item of the income statement as other compensation costs arising from services rendered by the pertinent employees during the period. The amendments in this update are effective for annual reporting periods beginning after December 15, 2017, including interim periods within those annual reporting periods. The adoption of this guidance is not expected to have a material effect on the Company's consolidated financial statements. |
ACCOUNTING POLICIES (Tables)
ACCOUNTING POLICIES (Tables) | 9 Months Ended |
Sep. 30, 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 Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2016, were adjusted as follows: Three Months Ended September 30, 2016 As originally reported Effect of change As adjusted Cost of sales $ 273,219 $ (1,944 ) $ 271,275 Income (loss) from operations (8,254 ) 1,944 (6,310 ) Net income (loss) (10,918 ) 1,944 (8,974 ) Basic and diluted loss per share $ (0.21 ) $ 0.04 $ (0.17 ) Nine Months Ended September 30, 2016 As originally reported Effect of change As adjusted Cost of sales $ 848,264 $ 3,004 $ 851,268 Loss from operations (12,251 ) (3,004 ) (15,255 ) Net loss (22,102 ) (3,004 ) (25,106 ) Basic and diluted loss per share $ (0.55 ) $ (0.05 ) $ (0.60 ) 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) | 9 Months Ended |
Sep. 30, 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): September 30, December 31, Accounts receivable $ 239,095 $ 182,728 Allowance for doubtful accounts (2,879 ) (3,344 ) Accounts receivable, net $ 236,216 $ 179,384 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 9 Months Ended |
Sep. 30, 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): September 30, December 31, Raw material $ 88,036 $ 76,380 Work-in-process 41,960 32,395 Finished goods 201,382 163,461 $ 331,378 $ 272,236 |
PROPERTY, PLANT AND EQUIPMENT36
PROPERTY, PLANT AND EQUIPMENT, NET (Tables) | 9 Months Ended |
Sep. 30, 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): September 30, December 31, Land and improvements $ 47,215 $ 43,871 Buildings and improvements 259,087 239,036 Machinery and equipment 604,617 573,717 Tools, dies and molds 112,650 106,695 Construction-in-process 16,956 43,080 1,040,525 1,006,399 Less accumulated depreciation (600,447 ) (569,198 ) $ 440,078 $ 437,201 Depreciation on fixed assets for the nine months ended September 30, 2017 and 2016 , totaled $41.0 million and $42.1 million , respectively. Capital leases included in property, plant, and equipment consisted of the following as of the dates set forth below (amounts in thousands): September 30, December 31, Buildings and improvements $ 4,002 $ 3,565 Less accumulated amortization (2,213 ) (1,923 ) $ 1,789 $ 1,642 Machinery and equipment $ 34,230 $ 31,331 Less accumulated amortization (29,091 ) (26,502 ) $ 5,139 $ 4,829 |
INTANGIBLE ASSETS (Tables)
INTANGIBLE ASSETS (Tables) | 9 Months Ended |
Sep. 30, 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) September 30, 2017 September 30, December 31, Amortizable intangible assets: Customer relationships 9.9 $ 13,956 $ 13,171 Patents, trademarks and other 7.5 15,180 14,629 Total at cost 29,136 27,800 Less accumulated amortization (13,338 ) (11,399 ) $ 15,798 $ 16,401 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | The estimated aggregate amortization expense at September 30, 2017 , for each of the years (or other periods) set forth below was as follows (amounts in thousands): October 1 - December 31, 2017 $ 604 2018 2,257 2019 2,237 2020 2,237 2021 1,563 Thereafter 6,900 $ 15,798 |
WARRANTY (Tables)
WARRANTY (Tables) | 9 Months Ended |
Sep. 30, 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 5,377 4,950 Warranty payments made (5,693 ) (8,882 ) Warranty liability, September 30 $ 17,610 $ 19,188 |
REVOLVING CREDIT FACILITY AND39
REVOLVING CREDIT FACILITY AND LONG-TERM DEBT (Tables) | 9 Months Ended |
Sep. 30, 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): September 30, 2017 Principal Balance Unamortized Discount Net Carrying Amount 6.875% senior secured notes due 2020 $ 400,000 $ (3,406 ) $ 396,594 Titan Europe credit facilities 33,541 — 33,541 Other debt 16,296 — 16,296 Capital leases 973 — 973 Total debt 450,810 (3,406 ) 447,404 Less amounts due within one year 36,174 — 36,174 Total long-term debt $ 414,636 $ (3,406 ) $ 411,230 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 principal maturities of long-term debt at September 30, 2017 , for each of the years (or other periods) set forth below were as follows (amounts in thousands): October 1 - December 31, 2017 $ 22,169 2018 11,704 2019 14,082 2020 402,259 2021 455 Thereafter 141 $ 450,810 |
REDEEMABLE NONCONTROLLING INT40
REDEEMABLE NONCONTROLLING INTEREST (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Noncontrolling Interest [Abstract] | |
Redeemable Noncontrolling Interest [Table Text Block] | The following is a reconciliation of redeemable noncontrolling interest as of September 30, 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 271 1,775 Currency translation 1,955 3,330 Redemption value adjustment 3,981 8,475 Balance at September 30 $ 111,016 $ 102,793 |
LEASE COMMITMENTS (Tables)
LEASE COMMITMENTS (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Leases [Abstract] | |
Lessee, Operating Lease, Disclosure [Table Text Block] | At September 30, 2017 , future minimum rental commitments under noncancellable operating leases with initial terms of at least one year were as follows (amounts in thousands): October 1 - December 31, 2017 $ 1,960 2018 5,489 2019 4,478 2020 2,599 2021 1,908 Thereafter 1,952 Total future minimum lease payments $ 18,386 |
Schedule of Future Minimum Lease Payments for Capital Leases [Table Text Block] | At September 30, 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 September 30, 2017 , total future capital lease obligations relating to these leases were as follows (amounts in thousands): October 1 - December 31, 2017 $ 139 2018 662 2019 150 2020 20 2021 2 Total future capital lease obligation payments 973 Less amount representing interest (12 ) Present value of future capital lease obligation payments $ 961 |
EMPLOYEE BENEFIT PLANS (Tables)
EMPLOYEE BENEFIT PLANS (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Retirement Benefits [Abstract] | |
Schedule of Defined Benefit Plans Disclosures [Table Text Block] | The components of net periodic pension cost consisted of the following for the periods set forth below (amounts in thousands): Three months ended Nine months ended September 30, September 30, 2017 2016 2017 2016 Service cost $ 129 $ 74 $ 482 $ 386 Interest cost 1,197 1,230 3,531 3,700 Expected return on assets (1,372 ) (1,396 ) (4,109 ) (4,184 ) Amortization of unrecognized prior service cost 34 35 102 103 Amortization of net unrecognized loss 663 762 1,992 2,289 Net periodic pension cost $ 651 $ 705 $ 1,998 $ 2,294 |
VARIABLE INTEREST ENTITIES (Tab
VARIABLE INTEREST ENTITIES (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Variable Interest Entity, Consolidated, Carrying Amount, Assets and Liabilities, Net [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 Condensed Consolidated Balance Sheets at September 30, 2017 , and December 31, 2016 (amounts in thousands): September 30, December 31, 2016 Cash and cash equivalents $ 12,251 $ 9,396 Inventory 13,862 11,445 Other current assets 22,099 23,301 Property, plant and equipment, net 34,131 30,448 Other noncurrent assets 8,431 4,955 Total assets $ 90,774 $ 79,545 Current liabilities $ 23,744 $ 22,068 Noncurrent liabilities 9,759 5,350 Total liabilities $ 33,503 $ 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): September 30, December 31, 2016 Investments $ 3,505 $ 4,738 Other current assets 1,224 1,039 Total VIE assets 4,729 5,777 Accounts payable 1,706 932 Maximum exposure to loss $ 6,435 $ 6,709 |
OTHER INCOME (Tables)
OTHER INCOME (Tables) | 9 Months Ended |
Sep. 30, 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 Nine months ended September 30, September 30, 2017 2016 2017 2016 Equity investment income $ 1,391 $ 840 $ 2,741 $ 2,423 Interest income 872 929 2,646 2,182 Investment gain related to investments for deferred compensation 480 560 1,827 52 Building rental income 594 557 1,789 1,528 Discount amortization on prepaid royalty 180 389 689 1,168 Gain (loss) on sale of assets (542 ) (71 ) (734 ) 2,271 Other income (expense) 66 374 (560 ) 908 $ 3,041 $ 3,578 $ 8,398 $ 10,532 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Earnings per share (EPS) were as follows for the periods presented below (amounts in thousands, except per share data): Three months ended Nine months ended September 30, September 30, 2017 2016 2017 2016 Net loss attributable to Titan $ (12,018 ) $ (8,008 ) $ (29,764 ) $ (24,007 ) Redemption value adjustment (882 ) (1,367 ) (3,981 ) (8,475 ) Net loss applicable to common shareholders $ (12,900 ) $ (9,375 ) $ (33,745 ) $ (32,482 ) Determination of shares: Weighted average shares outstanding (basic and diluted) 59,600 53,946 59,247 53,895 Earnings per share: Basic and diluted (0.22 ) (0.17 ) (0.57 ) (0.60 ) |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Segment Reporting Information [Line Items] | |
Reconciliation of Revenue from Segments to Consolidated [Table Text Block] | he table below presents information about certain operating results, separated by market segments, for the three and nine months ended September 30, 2017 and 2016 (amounts in thousands): Three months ended Nine months ended September 30, September 30, 2017 2016 2017 2016 Net sales Agricultural $ 170,895 $ 138,568 $ 524,335 $ 438,108 Earthmoving/construction 156,442 128,917 443,030 401,649 Consumer 43,651 38,710 125,523 118,446 $ 370,988 $ 306,195 $ 1,092,888 $ 958,203 Gross profit Agricultural $ 18,930 $ 18,592 $ 63,542 $ 57,684 Earthmoving/construction 14,534 11,553 41,170 36,354 Consumer 6,201 4,775 18,244 12,897 $ 39,665 $ 34,920 $ 122,956 $ 106,935 Income (loss) from operations Agricultural $ 10,056 $ 9,891 $ 36,721 $ 32,718 Earthmoving/construction 2,985 807 5,853 4,060 Consumer 3,060 1,331 8,001 2,072 Corporate & Unallocated (21,242 ) (18,339 ) (58,819 ) (54,105 ) Loss from operations (5,141 ) (6,310 ) (8,244 ) (15,255 ) Interest expense (7,537 ) (8,714 ) (22,578 ) (25,208 ) Foreign exchange gain 815 398 48 7,403 Other income, net 3,041 3,578 8,398 10,532 Loss before income taxes $ (8,822 ) $ (11,048 ) $ (22,376 ) $ (22,528 ) |
Reconciliation of Assets from Segment to Consolidated [Table Text Block] | Assets by segment were as follows as of the dates set forth below (amounts in thousands): September 30, December 31, Total assets Agricultural $ 482,958 $ 439,371 Earthmoving/construction 533,112 443,879 Consumer 141,496 140,293 Corporate & Unallocated 172,344 242,353 $ 1,329,910 $ 1,265,896 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 9 Months Ended |
Sep. 30, 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): September 30, 2017 December 31, 2016 Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Contractual obligation investments $ 11,494 $ 11,494 $ — $ — $ 9,668 $ 9,668 $ — $ — Derivative financial instruments asset 566 — 566 — 988 — 988 — Preferred stock 145 — — 145 181 — — 181 Total $ 12,205 $ 11,494 $ 566 $ 145 $ 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 (36 ) Balance as of September 30, 2017 $ 145 |
ACCUMULATED OTHER COMPREHENSI48
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Stockholders' Equity Note [Abstract] | |
Schedule of 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 July 1, 2017 $ (144,200 ) $ (23,928 ) $ (168,128 ) Currency translation adjustments 13,379 — 13,379 Defined benefit pension plan entries: Amortization of unrecognized losses and prior service cost, net of tax of $166 — 180 180 Balance at September 30, 2017 $ (130,821 ) $ (23,748 ) $ (154,569 ) Currency Translation Adjustments Unrecognized Losses and Prior Service Cost Total Balance at January 1, 2017 $ (162,628 ) $ (25,650 ) $ (188,278 ) Currency translation adjustments 31,807 — 31,807 Defined benefit pension plan entries: Amortization of unrecognized losses and prior service cost, net of tax of $55 — 1,902 1,902 Balance at September 30, 2017 $ (130,821 ) $ (23,748 ) $ (154,569 ) |
SUBSIDIARY GUARANTOR FINANCIA49
SUBSIDIARY GUARANTOR FINANCIAL INFORMATION (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Condensed Income Statement [Table Text Block] | (Amounts in thousands) Condensed Consolidating Statements of Operations For the Three Months Ended September 30, 2017 Titan Intl., Inc. (Parent) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net sales $ — $ 138,557 $ 232,431 $ — $ 370,988 Cost of sales 99 122,129 209,095 — 331,323 Gross profit (loss) (99 ) 16,428 23,336 — 39,665 Selling, general and administrative expenses 2,100 12,594 25,059 — 39,753 Research and development expenses — 972 1,485 — 2,457 Royalty expense 217 1,435 944 — 2,596 Income (loss) from operations (2,416 ) 1,427 (4,152 ) — (5,141 ) Interest expense (7,231 ) — (306 ) — (7,537 ) Intercompany interest income (expense) 606 983 (1,589 ) — — Foreign exchange gain (loss) (2 ) 71 746 — 815 Other income (expense) 968 (33 ) 2,106 — 3,041 Income (loss) before income taxes (8,075 ) 2,448 (3,195 ) — (8,822 ) Provision for income taxes 889 994 513 — 2,396 Equity in earnings of subsidiaries (2,252 ) — (2,306 ) 4,558 — Net income (loss) (11,216 ) 1,454 (6,014 ) 4,558 (11,218 ) Net income noncontrolling interests — — 800 — 800 Net income (loss) attributable to Titan $ (11,216 ) $ 1,454 $ (6,814 ) $ 4,558 $ (12,018 ) (Amounts in thousands) Condensed Consolidating Statements of Operations For the Three Months Ended September 30, 2016 Titan Intl., Inc. (Parent) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net sales $ — $ 114,743 $ 191,452 $ — $ 306,195 Cost of sales 87 99,573 171,615 — 271,275 Gross profit (loss) (87 ) 15,170 19,837 — 34,920 Selling, general and administrative expenses 2,556 15,407 18,385 — 36,348 Research and development expenses — 776 1,821 — 2,597 Royalty expense 125 1,296 864 — 2,285 Loss from operations (2,768 ) (2,309 ) (1,233 ) — (6,310 ) Interest expense (8,288 ) — (426 ) — (8,714 ) Intercompany interest income (expense) 470 — (470 ) — — Foreign exchange gain — — 398 398 Other income 1,256 62 2,260 — 3,578 Income (loss) before income taxes (9,330 ) (2,247 ) 529 — (11,048 ) Provision (benefit) for income taxes (1,935 ) (1,448 ) 1,309 — (2,074 ) Equity in earnings of subsidiaries (3,523 ) — (4,037 ) 7,560 — Net income (loss) (10,918 ) (799 ) (4,817 ) 7,560 (8,974 ) Net loss noncontrolling interests — — (966 ) — (966 ) Net income (loss) attributable to Titan $ (10,918 ) $ (799 ) $ (3,851 ) $ 7,560 $ (8,008 ) (Amounts in thousands) Condensed Consolidating Statements of Operations For the Nine Months Ended September 30, 2017 Titan Intl., Inc. (Parent) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net sales $ — $ 429,636 $ 663,252 $ — $ 1,092,888 Cost of sales 256 378,875 590,801 — 969,932 Gross profit (loss) (256 ) 50,761 72,451 — 122,956 Selling, general and administrative expenses 10,038 43,906 61,609 — 115,553 Research and development expenses — 2,825 5,083 — 7,908 Royalty expense 883 4,140 2,716 — 7,739 Income (loss) from operations (11,177 ) (110 ) 3,043 — (8,244 ) Interest expense (21,909 ) — (669 ) — (22,578 ) Intercompany interest income (expense) 1,775 2,930 (4,705 ) — — Foreign exchange gain (loss) (2 ) 30 20 — 48 Other income (expense) 3,179 (203 ) 5,422 — 8,398 Income (loss) before income taxes (28,134 ) 2,647 3,111 — (22,376 ) Provision (benefit) for income taxes (620 ) 2,489 4,095 — 5,964 Equity in earnings of subsidiaries 2,120 — (10,715 ) 8,595 — Net income (loss) (25,394 ) 158 (11,699 ) 8,595 (28,340 ) Net income noncontrolling interests — — 1,424 — 1,424 Net income (loss) attributable to Titan $ (25,394 ) $ 158 $ (13,123 ) $ 8,595 $ (29,764 ) (Amounts in thousands) Condensed Consolidating Statements of Operations For the Nine Months Ended September 30, 2016 Titan Intl., Inc. (Parent) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net sales $ — $ 384,917 $ 573,286 $ — $ 958,203 Cost of sales 659 334,044 516,565 — 851,268 Gross profit (loss) (659 ) 50,873 56,721 — 106,935 Selling, general and administrative expenses 7,907 47,879 51,926 — 107,712 Research and development expenses — 2,221 5,569 — 7,790 Royalty expense 542 3,573 2,573 — 6,688 Loss from operations (9,108 ) (2,800 ) (3,347 ) — (15,255 ) Interest expense (24,382 ) — (826 ) — (25,208 ) Intercompany interest income (expense) 1,122 — (1,122 ) — — Foreign exchange gain — 202 7,201 7,403 Other income 1,864 220 8,448 — 10,532 Income (loss) before income taxes (30,504 ) (2,378 ) 10,354 — (22,528 ) Provision (benefit) for income taxes (2,205 ) 417 4,366 — 2,578 Equity in earnings of subsidiaries 6,197 — (6,243 ) 46 — Net income (loss) (22,102 ) (2,795 ) (255 ) 46 (25,106 ) Net loss noncontrolling interests — — (1,099 ) — (1,099 ) Net income (loss) attributable to Titan $ (22,102 ) $ (2,795 ) $ 844 $ 46 $ (24,007 ) |
Condensed Statement of Comprehensive Income [Table Text Block] | (Amounts in thousands) Condensed Consolidating Statements of Comprehensive Income (Loss) For the Three Months Ended September 30, 2017 Titan Intl., Inc. (Parent) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net income (loss) $ (11,216 ) $ 1,454 $ (6,014 ) $ 4,558 $ (11,218 ) Currency translation adjustment 14,015 — 14,015 (14,015 ) 14,015 Pension liability adjustments, net of tax 180 625 (445 ) (180 ) 180 Comprehensive income (loss) 2,979 2,079 7,556 (9,637 ) 2,977 Net comprehensive income attributable to redeemable and noncontrolling interests — — 1,436 — 1,436 Comprehensive income (loss) attributable to Titan $ 2,979 $ 2,079 $ 6,120 $ (9,637 ) $ 1,541 (Amounts in thousands) Condensed Consolidating Statements of Comprehensive Income (Loss) For the Three Months Ended September 30, 2016 Titan Intl., Inc. (Parent) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net income (loss) $ (10,918 ) $ (799 ) $ (4,817 ) $ 7,560 $ (8,974 ) Currency translation adjustment (386 ) — (386 ) 386 (386 ) Pension liability adjustments, net of tax 465 734 (269 ) (465 ) 465 Comprehensive income (loss) (10,839 ) (65 ) (5,472 ) 7,481 (8,895 ) Net comprehensive loss attributable to redeemable and noncontrolling interests — — (679 ) — (679 ) Comprehensive income (loss) attributable to Titan $ (10,839 ) $ (65 ) $ (4,793 ) $ 7,481 $ (8,216 ) (Amounts in thousands) Condensed Consolidating Statements of Comprehensive Income (Loss) For the Nine Months Ended September 30, 2017 Titan Intl., Inc. (Parent) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net income (loss) $ (25,394 ) $ 158 $ (11,699 ) $ 8,595 $ (28,340 ) Currency translation adjustment 33,040 — 33,040 (33,040 ) 33,040 Pension liability adjustments, net of tax 1,902 1,875 27 (1,902 ) 1,902 Comprehensive income (loss) 9,548 2,033 21,368 (26,347 ) 6,602 Net comprehensive income attributable to redeemable and noncontrolling interests — — 2,657 — 2,657 Comprehensive income (loss) attributable to Titan $ 9,548 $ 2,033 $ 18,711 $ (26,347 ) $ 3,945 (Amounts in thousands) Condensed Consolidating Statements of Comprehensive Income (Loss) For the Nine Months Ended September 30, 2016 Titan Intl., Inc. (Parent) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net income (loss) $ (22,102 ) $ (2,795 ) $ (255 ) $ 46 $ (25,106 ) Currency translation adjustment 21,545 — (21,545 ) 21,545 21,545 Pension liability adjustments, net of tax 1,200 2,202 (1,002 ) (1,200 ) 1,200 Comprehensive income (loss) 643 (593 ) (22,802 ) 20,391 (2,361 ) Net comprehensive income attributable to redeemable and noncontrolling interests — — 5,427 — 5,427 Comprehensive income (loss) attributable to Titan $ 643 $ (593 ) $ (28,229 ) $ 20,391 $ (7,788 ) |
Condensed Balance Sheet [Table Text Block] | (Amounts in thousands) Condensed Consolidating Balance Sheets September 30, 2017 Titan Intl., Inc. (Parent) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Assets Cash and cash equivalents $ 77,903 $ 10 $ 77,762 $ — $ 155,675 Accounts receivable, net — 65,141 171,075 — 236,216 Inventories — 90,857 240,521 — 331,378 Prepaid and other current assets 6,652 21,131 34,849 — 62,632 Total current assets 84,555 177,139 524,207 — 785,901 Property, plant and equipment, net 2,771 112,878 324,429 — 440,078 Investment in subsidiaries 772,243 — 75,145 (847,388 ) — Other assets 19,155 969 83,807 — 103,931 Total assets $ 878,724 $ 290,986 $ 1,007,588 $ (847,388 ) $ 1,329,910 Liabilities and Equity Short-term debt $ — $ — $ 36,174 $ — $ 36,174 Accounts payable (973 ) 21,547 163,756 — 184,330 Other current liabilities 33,431 31,579 68,621 — 133,631 Total current liabilities 32,458 53,126 268,551 — 354,135 Long-term debt 396,594 — 14,636 — 411,230 Other long-term liabilities 23,524 16,516 62,378 — 102,418 Intercompany accounts 61,666 (278,187 ) 216,521 — — Redeemable noncontrolling interest — — 111,016 — 111,016 Titan shareholders' equity 364,482 499,531 339,306 (847,388 ) 355,931 Noncontrolling interests — — (4,820 ) — (4,820 ) Total liabilities and equity $ 878,724 $ 290,986 $ 1,007,588 $ (847,388 ) $ 1,329,910 (Amounts in thousands) Condensed Consolidating 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) Condensed Consolidating Statements of Cash Flows For the Nine Months Ended September 30, 2017 Titan Intl., Inc. (Parent) Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidated Net cash provided by (used for) operating activities $ (53,211 ) $ 4,107 $ 33,892 $ (15,212 ) Cash flows from investing activities: Capital expenditures (815 ) (4,472 ) (18,293 ) (23,580 ) Certificates of deposit 50,000 — — 50,000 Other, net — 366 927 1,293 Net cash provided by (used for) investing activities 49,185 (4,106 ) (17,366 ) 27,713 Cash flows from financing activities: Proceeds from borrowings — — 33,540 33,540 Payment on debt (3,393 ) — (37,610 ) (41,003 ) Dividends paid (868 ) — — (868 ) Net cash used for financing activities (4,261 ) — (4,070 ) (8,331 ) Effect of exchange rate change on cash — — 3,678 3,678 Net increase (decrease) in cash and cash equivalents (8,287 ) 1 16,134 7,848 Cash and cash equivalents, beginning of period 86,190 9 61,628 147,827 Cash and cash equivalents, end of period $ 77,903 $ 10 $ 77,762 $ 155,675 (Amounts in thousands) Condensed Consolidating Statements of Cash Flows For the Nine Months Ended September 30, 2016 Titan Intl., Inc. (Parent) Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidated Net cash provided by operating activities $ 4,154 $ 5,553 $ 44,277 $ 53,984 Cash flows from investing activities: Capital expenditures (657 ) (5,616 ) (24,573 ) (30,846 ) Other, net — 73 1,614 1,687 Net cash used for investing activities (657 ) (5,543 ) (22,959 ) (29,159 ) Cash flows from financing activities: Proceeds from borrowings — — 2,390 2,390 Payment on debt — — (14,042 ) (14,042 ) Dividends paid (810 ) — — (810 ) Net cash used for financing activities (810 ) — (11,652 ) (12,462 ) Effect of exchange rate change on cash — — 2,958 2,958 Net increase in cash and cash equivalents 2,687 10 12,624 15,321 Cash and cash equivalents, beginning of period 142,401 4 57,783 200,188 Cash and cash equivalents, end of period $ 145,088 $ 14 $ 70,407 $ 215,509 |
ACCOUNTING POLICIES (Details)
ACCOUNTING POLICIES (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Cost of sales | $ 331,323 | $ 271,275 | $ 969,932 | $ 851,268 | ||
Income (loss) from operations | (5,141) | (6,310) | (8,244) | (15,255) | ||
Net loss | $ (11,218) | $ (8,974) | $ (28,340) | $ (25,106) | ||
Basic | $ (0.22) | $ (0.17) | $ (0.57) | $ (0.60) | ||
Inventory, Net | $ 331,378 | $ 331,378 | $ 272,236 | |||
Retained earnings (deficit) | (13,445) | (13,445) | 17,214 | |||
Debt Instrument, Unamortized Discount (Premium), Net | 3,406 | 3,406 | ||||
Long-term Debt | $ 396,600 | $ 396,600 | ||||
Debt Instrument, Interest Rate, Stated Percentage | 5.625% | 5.625% | ||||
Debt Instrument, Fair Value Disclosure | $ 410,500 | $ 410,500 | ||||
Common Stock, Dividends, Per Share, Declared | $ 0.005 | $ 0.005 | $ 0.015 | $ 0.015 | ||
Senior Secured Notes 6.875 Percent [Member] | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Long-term Debt | $ 400,000 | $ 400,000 | 400,000 | |||
Debt Instrument, Interest Rate, Stated Percentage | 6.875% | 6.875% | ||||
Scenario, Previously Reported [Member] | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Cost of sales | $ 273,219 | $ 848,264 | ||||
Income (loss) from operations | (8,254) | (12,251) | ||||
Net loss | $ (10,918) | $ (22,102) | ||||
Basic | $ (0.21) | $ (0.55) | ||||
Inventory, Net | 269,291 | |||||
Retained earnings (deficit) | 14,269 | |||||
Restatement Adjustment [Member] | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Cost of sales | $ (1,944) | $ 3,004 | ||||
Income (loss) from operations | 1,944 | (3,004) | ||||
Net loss | $ 1,944 | $ (3,004) | ||||
Basic | $ 0.04 | $ (0.05) | ||||
Inventory, Net | 2,945 | |||||
Retained earnings (deficit) | $ 2,945 | $ 6,600 |
ACCOUNTS RECEIVABLE (Details)
ACCOUNTS RECEIVABLE (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Receivables [Abstract] | ||
Accounts receivable | $ 239,095 | $ 182,728 |
Allowance for doubtful accounts | 2,879 | 3,344 |
Accounts receivable, net | $ 236,216 | $ 179,384 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Inventory Disclosure [Abstract] | ||
Raw material | $ 88,036 | $ 76,380 |
Work-in-process | 41,960 | 32,395 |
Finished goods | 201,382 | 163,461 |
Inventory, Gross | $ 331,378 | $ 272,236 |
PROPERTY, PLANT AND EQUIPMENT53
PROPERTY, PLANT AND EQUIPMENT, NET (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | $ 1,040,525 | $ 1,006,399 | |
Less accumulated depreciation | (600,447) | (569,198) | |
Property, Plant and Equipment, Net | 440,078 | 437,201 | |
Depreciation | 41,000 | $ 42,100 | |
Capital Leases, Balance Sheet, Assets by Major Class, Net | 6,900 | ||
Land and Land Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 47,215 | 43,871 | |
Building and Building Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 259,087 | 239,036 | |
Capital Leased Assets, Gross | 4,002 | 3,565 | |
Capital Leases, Lessee Balance Sheet, Assets by Major Class, Accumulated Depreciation | (2,213) | (1,923) | |
Capital Leases, Balance Sheet, Assets by Major Class, Net | 1,789 | 1,642 | |
Machinery and Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 604,617 | 573,717 | |
Capital Leased Assets, Gross | 34,230 | 31,331 | |
Capital Leases, Lessee Balance Sheet, Assets by Major Class, Accumulated Depreciation | (29,091) | (26,502) | |
Capital Leases, Balance Sheet, Assets by Major Class, Net | 5,139 | 4,829 | |
Tools, Dies and Molds [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 112,650 | 106,695 | |
Construction in Progress [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | $ 16,956 | $ 43,080 |
INTANGIBLE ASSETS (Details)
INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2017 | Dec. 31, 2016 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 9 years 10 months 24 days | ||
Finite-Lived Customer Relationships, Gross | $ 13,956 | $ 13,171 | |
Finite-Lived Intangible Asset, Useful Life | 7 years 6 months | ||
Finite-Lived Trademarks, Gross | $ 15,180 | 14,629 | |
Finite-Lived Intangible Assets, Gross | 29,136 | 27,800 | |
Finite-Lived Intangible Assets, Accumulated Amortization | (13,338) | (11,399) | |
Intangible Assets, Net (Excluding Goodwill) | 15,798 | $ 16,401 | |
Amortization of Intangible Assets | $ 2,100 | 2,200 | |
Finite-Lived Intangible Assets, Amortization Expense, Maturity Schedule [Abstract] | |||
October 1 - December 31, 2017 | 604 | ||
2,018 | 2,257 | ||
2,019 | 2,237 | ||
2,020 | 2,237 | ||
2,021 | 1,563 | ||
Thereafter | $ 6,900 |
WARRANTY (Details)
WARRANTY (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Product Warranty Liability [Line Items] | ||
Warranty liability at January 1 | $ 17,926 | $ 23,120 |
Provision for warranty liabilities | 5,377 | 4,950 |
Warranty payments made | (5,693) | (8,882) |
Warranty liability at September 30 | $ 17,610 | $ 19,188 |
REVOLVING CREDIT FACILITY AND56
REVOLVING CREDIT FACILITY AND LONG-TERM DEBT (Details) - USD ($) | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Debt Instruments [Abstract] | |||
6.875% senior secured notes due 2020 | $ 396,600,000 | ||
Capital leases | 973,000 | $ 902,000 | |
Long-term Debt and Capital Lease Obligations, Including Current Maturities | 447,404,000 | 506,172,000 | |
Short-term debt | 36,174,000 | 97,412,000 | |
Long-term debt | 411,230,000 | 408,760,000 | |
Debt Instrument, Unamortized Discount | (3,406,000) | (4,161,000) | |
Debt Instrument, Unamortized Discount, Noncurrent | 0 | 0 | |
Debt Instrument, Unamortized Discount, Current | 0 | (13,000) | |
Debt Instrument, Unamortized Discount (Premium), Net | (3,406,000) | ||
Maturities of Long-term Debt [Abstract] | |||
October 1 - December 31, 2017 | 22,169,000 | ||
2,018 | 11,704,000 | ||
2,019 | 14,082,000 | ||
2,020 | 402,259,000 | ||
2,021 | 455,000 | ||
Thereafter | $ 141,000 | ||
Debt Instrument, Interest Rate, Stated Percentage | 5.625% | ||
Debt Conversion, Original Debt, Amount | $ 60,200,000 | ||
Debt Conversion, Converted Instrument, Amount | $ 58,500,000 | ||
Conversion of Stock, Shares Converted | 5,462,264 | ||
Repayments of Other Debt | $ 41,003,000 | $ 14,042,000 | |
Line of Credit Facility, Maximum Borrowing Capacity | 75,000,000 | 150,000,000 | |
Letters of Credit Outstanding, Amount | 12,500,000 | ||
Line of Credit Facility, Current Borrowing Capacity | 62,500,000 | ||
Senior Secured Notes 6.875 Percent [Member] | |||
Debt Instruments [Abstract] | |||
6.875% senior secured notes due 2020 | 400,000,000 | 400,000,000 | |
Long-term Debt | 396,594,000 | 395,852,000 | |
Debt Instrument, Unamortized Discount | $ (3,406,000) | (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 | 33,541,000 | 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 | $ 16,296,000 | 15,560,000 | |
Debt Instrument, Unamortized Discount, Noncurrent | 0 | 0 | |
Titan Brazil [Member] | |||
Debt Instruments [Abstract] | |||
Other debt | 8,900,000 | ||
Voltyre-Prom [Member] | |||
Debt Instruments [Abstract] | |||
Other debt | 7,400,000 | ||
Long-term Debt [Member] | |||
Debt Instruments [Abstract] | |||
Long-term Debt and Capital Lease Obligations, Including Current Maturities | 450,810,000 | 510,333,000 | |
Short-term debt | 97,425,000 | ||
Long-term debt | $ 414,636,000 | 412,908,000 | |
Accounting Standards Update 2015-03 [Member] | |||
Debt Instruments [Abstract] | |||
Debt Instrument, Unamortized Discount (Premium), Net | $ (4,148,000) |
DERIVATIVE FINANCIAL INSTRUME57
DERIVATIVE FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Derivative, Gain (Loss) on Derivative, Net | $ 0.2 | $ 0.5 |
REDEEMABLE NONCONTROLLING INT58
REDEEMABLE NONCONTROLLING INTEREST (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2017 | Sep. 30, 2016 | Mar. 31, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Feb. 08, 2016 | 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% | |||||
Balance at January 1 | 77,174 | $ 104,809 | $ 77,174 | ||||
Noncontrolling Interest, Period Increase (Decrease) | 12,000 | 0 | 12,039 | ||||
Net Income (Loss) Attributable to Redeemable Noncontrolling Interest | 271 | 1,775 | |||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, before Tax, Portion Attributable to Noncontrolling Interest | 1,955 | 3,330 | |||||
Redemption value adjustment | $ 882 | $ 1,367 | 3,981 | 8,475 | |||
Balance at September 30 | $ 111,016 | $ 102,793 | 111,016 | $ 102,793 | |||
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 | ||||||
Redemption value adjustment | $ (3,981) |
LEASE COMMITMENTS (Details)
LEASE COMMITMENTS (Details) $ in Thousands | Sep. 30, 2017USD ($) |
Operating Leases, Future Minimum Payments Due [Abstract] | |
October 1 - December 31, 2017 | $ 1,960 |
2,018 | 5,489 |
2,019 | 4,478 |
2,020 | 2,599 |
2,021 | 1,908 |
Thereafter | 1,952 |
Total future minimum lease payments | 18,386 |
Capital Leases, Balance Sheet, Assets by Major Class, Net | 6,900 |
Capital Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
October 1 - December 31, 2017 | 139 |
2,018 | 662 |
2,019 | 150 |
2,020 | 20 |
2,021 | 2 |
Total future capital lease obligation payments | 973 |
Less amount representing interest | (12) |
Present value of future capital lease obligation payments | $ 961 |
EMPLOYEE BENEFIT PLANS (Details
EMPLOYEE BENEFIT PLANS (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Plan Assets, Contributions by Employer | $ 2,100 | |||
Defined Benefit Plan, Estimated Future Employer Contributions in Current Fiscal Year | 1,200 | $ 1,200 | ||
Pension Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Service Cost | 129 | $ 74 | 482 | $ 386 |
Defined Benefit Plan, Interest Cost | 1,197 | 1,230 | 3,531 | 3,700 |
Defined Benefit Plan, Expected Return (Loss) on Plan Assets | (1,372) | (1,396) | (4,109) | (4,184) |
Defined Benefit Plan, Amortization of Prior Service Cost (Credit) | 34 | 35 | 102 | 103 |
Defined Benefit Plan, Amortization of Gain (Loss) | 663 | 762 | 1,992 | 2,289 |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) | $ 651 | $ 705 | $ 1,998 | $ 2,294 |
VARIABLE INTEREST ENTITIES (Det
VARIABLE INTEREST ENTITIES (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Dec. 31, 2015 |
Variable Interest Entity [Line Items] | ||||
Cash and Cash Equivalents, at Carrying Value | $ 155,675 | $ 147,827 | $ 215,509 | $ 200,188 |
Inventories | 331,378 | 272,236 | ||
Property, Plant and Equipment, Net | 440,078 | 437,201 | ||
Other Assets, Noncurrent | 103,931 | 99,514 | ||
Total assets | 1,329,910 | 1,265,896 | ||
Total current liabilities | 354,135 | 366,104 | ||
Other long-term liabilities | 84,611 | 80,161 | ||
Total liabilities | 867,783 | 868,208 | ||
Accounts payable | 184,330 | 148,255 | ||
Variable Interest Entity, Primary Beneficiary [Member] | ||||
Variable Interest Entity [Line Items] | ||||
Cash and Cash Equivalents, at Carrying Value | 12,251 | 9,396 | ||
Inventories | 13,862 | 11,445 | ||
Other Assets, Current | 22,099 | 23,301 | ||
Property, Plant and Equipment, Net | 34,131 | 30,448 | ||
Other Assets, Noncurrent | 8,431 | 4,955 | ||
Total assets | 90,774 | 79,545 | ||
Total current liabilities | 23,744 | 22,068 | ||
Liabilities, Noncurrent | 9,759 | 5,350 | ||
Total liabilities | 33,503 | 27,418 | ||
Variable Interest Entity, Not Primary Beneficiary [Member] | ||||
Variable Interest Entity [Line Items] | ||||
Other Assets, Current | 1,224 | 1,039 | ||
Investments | 3,505 | 4,738 | ||
Variable Interest Entity, Nonconsolidated, Carrying Amount, Assets | 4,729 | 5,777 | ||
Accounts payable | 1,706 | 932 | ||
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount | $ 6,435 | $ 6,709 |
ROYALTY EXPENSE (Details)
ROYALTY EXPENSE (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Other Income and Expenses [Abstract] | ||||
Royalty expense | $ 2,596 | $ 2,285 | $ 7,739 | $ 6,688 |
OTHER INCOME (Details)
OTHER INCOME (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Other Income and Expenses [Abstract] | ||||
Income (Loss) from Equity Method Investments | $ 1,391 | $ 840 | $ 2,741 | $ 2,423 |
Interest Income, Other | 872 | 929 | 2,646 | 2,182 |
Gain (Loss) on Investments | 480 | 560 | 1,827 | 52 |
Rental Income, Nonoperating | 594 | 557 | 1,789 | 1,528 |
Amortization of Prepaid Royalty Discount | 180 | 389 | 689 | 1,168 |
Gain (Loss) on Disposition of Assets | (542) | (71) | (734) | 2,271 |
Other Nonoperating Income (Expense) | 66 | 374 | (560) | 908 |
Nonoperating Income (Expense) | $ 3,041 | $ 3,578 | $ 8,398 | $ 10,532 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | ||||
Provision (benefit) for income taxes | $ 2,396 | $ (2,074) | $ 5,964 | $ 2,578 |
Effective Income Tax Rate, Continuing Operations | (27.00%) | 16.00% | (27.00%) | (13.00%) |
Unrecognized Tax Benefits, Period Increase (Decrease) | $ 2,500 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Net loss attributable to Titan | $ (12,018) | $ (8,008) | $ (29,764) | $ (24,007) |
Redemption value adjustment | (882) | (1,367) | (3,981) | (8,475) |
Net loss applicable to common shareholders | $ (12,900) | $ (9,375) | $ (33,745) | $ (32,482) |
Weighted Average Number of Shares Outstanding, Basic and Diluted | 59,600 | 53,946 | 59,247 | 53,895 |
Earnings Per Share, Basic and Diluted | $ (0.22) | $ (0.17) | $ (0.57) | $ (0.60) |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 300 | 200 | 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 | 300 | 5,600 |
LITIGATION (Details)
LITIGATION (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Dec. 31, 2015 | |
Loss Contingencies [Line Items] | ||
Accrual for Environmental Loss Contingencies | $ 6,500 | |
Accrual for Environmental Loss Contingencies, Revision in Estimates | 1,050 | |
Judicial Ruling [Member] | ||
Loss Contingencies [Line Items] | ||
Loss Contingency Accrual | $ 1,620 | |
Accrual for Environmental Loss Contingencies, Revision in Estimates | 5,450 | |
Unfavorable Regulatory Action [Member] | ||
Loss Contingencies [Line Items] | ||
Loss Contingency Accrual | $ 5,450 |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||||
Assets | $ 1,329,910 | $ 1,329,910 | $ 1,265,896 | ||
Gross profit (loss) | 39,665 | $ 34,920 | 122,956 | $ 106,935 | |
Loss from operations | (5,141) | (6,310) | (8,244) | (15,255) | |
Interest expense | (7,537) | (8,714) | (22,578) | (25,208) | |
Foreign Currency Transaction Gain (Loss), before Tax | 815 | 398 | 48 | 7,403 | |
Other income, net | 3,041 | 3,578 | 8,398 | 10,532 | |
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | (8,822) | (11,048) | (22,376) | (22,528) | |
Agricultural [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Assets | 482,958 | 482,958 | 439,371 | ||
Earthmoving/construction [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Assets | 533,112 | 533,112 | 443,879 | ||
Consumer [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Assets | 141,496 | 141,496 | 140,293 | ||
Operating Segments [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 370,988 | 306,195 | 1,092,888 | 958,203 | |
Gross profit (loss) | 39,665 | 34,920 | 122,956 | 106,935 | |
Loss from operations | (5,141) | (6,310) | (8,244) | (15,255) | |
Operating Segments [Member] | Agricultural [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 170,895 | 138,568 | 524,335 | 438,108 | |
Gross profit (loss) | 18,930 | 18,592 | 63,542 | 57,684 | |
Loss from operations | 10,056 | 9,891 | 36,721 | 32,718 | |
Operating Segments [Member] | Earthmoving/construction [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 156,442 | 128,917 | 443,030 | 401,649 | |
Gross profit (loss) | 14,534 | 11,553 | 41,170 | 36,354 | |
Loss from operations | 2,985 | 807 | 5,853 | 4,060 | |
Operating Segments [Member] | Consumer [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 43,651 | 38,710 | 125,523 | 118,446 | |
Gross profit (loss) | 6,201 | 4,775 | 18,244 | 12,897 | |
Loss from operations | 3,060 | 1,331 | 8,001 | 2,072 | |
Operating Segments [Member] | Unallocated Amount to Segment [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Loss from operations | (21,242) | (18,339) | (58,819) | (54,105) | |
Unallocated Amount to Segment [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Assets | 172,344 | 172,344 | $ 242,353 | ||
Interest expense | (7,537) | (8,714) | (22,578) | (25,208) | |
Foreign Currency Transaction Gain (Loss), before Tax | 815 | 398 | 48 | 7,403 | |
Other income, net | $ 3,041 | $ 3,578 | $ 8,398 | $ 10,532 |
SEGMENT INFORMATION ASSETS (det
SEGMENT INFORMATION ASSETS (details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Segment Reporting Information [Line Items] | ||
Assets | $ 1,329,910 | $ 1,265,896 |
Agricultural [Member] | ||
Segment Reporting Information [Line Items] | ||
Assets | 482,958 | 439,371 |
Earthmoving/construction [Member] | ||
Segment Reporting Information [Line Items] | ||
Assets | 533,112 | 443,879 |
Consumer [Member] | ||
Segment Reporting Information [Line Items] | ||
Assets | 141,496 | 140,293 |
Unallocated Amount to Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Assets | $ 172,344 | $ 242,353 |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands | 3 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2017 | Dec. 31, 2016 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Investments for contractual obligations | $ 11,494 | $ 9,668 | |
Derivative Asset | 566 | 988 | |
Other Assets, Fair Value Disclosure | $ 145 | 145 | 181 |
Assets, Fair Value Disclosure | 12,205 | 10,837 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Preferred stock at end of period | 145 | ||
Fair Value, Inputs, Level 1 [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Investments for contractual obligations | 11,494 | 9,668 | |
Derivative Asset | 0 | 0 | |
Other Assets, Fair Value Disclosure | 0 | 0 | 0 |
Assets, Fair Value Disclosure | 11,494 | 9,668 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
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 | 566 | 988 | |
Other Assets, Fair Value Disclosure | 0 | 0 | 0 |
Assets, Fair Value Disclosure | 566 | 988 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
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 | 145 | 145 | 181 |
Assets, Fair Value Disclosure | $ 145 | $ 181 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Assets, Fair Value Adjustment | (36) | ||
Preferred stock at end of period | $ 145 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Related Party Transaction [Line Items] | |||||
Related Party Transaction, Revenues from Transactions with Related Party | $ 0.3 | $ 0.2 | $ 1.3 | $ 0.6 | |
Related Party Transaction, Due from (to) Related Party | 0.2 | 0.2 | $ 0.1 | ||
Related Party Transaction, Expenses from Transactions with Related Party | $ 0.7 | 0.4 | $ 1.4 | 1.4 | |
Equity Method Investment, Ownership Percentage | 21.40% | 21.40% | |||
Accounts Payable, Related Parties, Current | $ 0.1 | $ 0.1 | 0.1 | ||
OTR Group [Member] | |||||
Related Party Transaction [Line Items] | |||||
Related Party Transaction, Purchases from Related Party | 0.2 | $ 0.1 | 0.4 | $ 0.3 | |
Valuepart and Track Solutions PTY Ltd. [Member] | |||||
Related Party Transaction [Line Items] | |||||
Related Party Transaction, Revenues from Transactions with Related Party | $ 0.1 | $ 0.2 | |||
Wheels India [Member] | |||||
Related Party Transaction [Line Items] | |||||
Equity Method Investment, Ownership Percentage | 34.20% | 34.20% | |||
Titan-Yuxiang Wheel [Member] | |||||
Related Party Transaction [Line Items] | |||||
Equity Method Investment, Ownership Percentage | 19.50% | 19.50% | |||
Accounts Payable, Related Parties, Current | $ 1.7 | $ 1.7 | $ 0.9 | ||
CITEC [Member] | |||||
Related Party Transaction [Line Items] | |||||
Equity Method Investment, Ownership Percentage | 49.00% | 49.00% |
ACCUMULATED OTHER COMPREHENSI71
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Mar. 31, 2017 | Dec. 31, 2016 | |
Stockholders' Equity Note [Abstract] | ||||||
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax | $ (130,821) | $ (130,821) | $ (144,200) | $ (162,628) | ||
Accumulated Other Comprehensive (Income) Loss, Defined Benefit Plan, after Tax | (23,748) | (23,748) | (23,928) | (25,650) | ||
Accumulated other comprehensive loss | (154,569) | (154,569) | $ (168,128) | $ (188,278) | ||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax, Portion Attributable to Parent | 13,379 | 31,807 | ||||
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, after Tax | 180 | $ 465 | 1,902 | $ 1,200 | ||
Other Comprehensive (Income) Loss, Defined Benefit Plan, Prior Service Cost (Credit), Reclassification Adjustment from AOCI, after Tax | $ 180 | $ 1,902 |
SUBSIDIARY GUARANTOR FINANCIA72
SUBSIDIARY GUARANTOR FINANCIAL INFORMATION (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Statement [Abstract] | ||||||
Net sales | $ 370,988 | $ 306,195 | $ 1,092,888 | $ 958,203 | ||
Cost of sales | 331,323 | 271,275 | 969,932 | 851,268 | ||
Gross profit (loss) | 39,665 | 34,920 | 122,956 | 106,935 | ||
Selling, General and Administrative Expense | 39,753 | 36,348 | 115,553 | 107,712 | ||
Research and Development Expense | 2,457 | 2,597 | 7,908 | 7,790 | ||
Royalty expense | 2,596 | 2,285 | 7,739 | 6,688 | ||
Loss from operations | (5,141) | (6,310) | (8,244) | (15,255) | ||
Interest expense | (7,537) | (8,714) | (22,578) | (25,208) | ||
Intercompany Interest Expense Income | 0 | 0 | 0 | 0 | ||
Foreign Currency Transaction Gain (Loss), before Tax | 815 | 398 | 48 | 7,403 | ||
Other income (expense) | (3,041) | (3,578) | (8,398) | (10,532) | ||
Loss before income taxes | (8,822) | (11,048) | (22,376) | (22,528) | ||
Provision (benefit) for income taxes | 2,396 | (2,074) | 5,964 | 2,578 | ||
Equity in Net Earnings (Loss) of Subsidiaries | 0 | 0 | 0 | 0 | ||
Net income (loss) | (11,218) | (8,974) | (28,340) | (25,106) | ||
Net income (loss) attributable to noncontrolling interests | 800 | (966) | 1,424 | (1,099) | ||
Net income (loss) attributable to Titan | (12,018) | (8,008) | (29,764) | (24,007) | ||
Comprehensive Income Statement [Abstract] | ||||||
Net income (loss) | (11,218) | (8,974) | (28,340) | (25,106) | ||
Currency translation adjustment | 14,015 | (386) | 33,040 | 21,545 | ||
Pension liability adjustments, net of tax | 180 | 465 | 1,902 | 1,200 | ||
Comprehensive income (loss) | 2,977 | (8,895) | 6,602 | (2,361) | ||
Net comprehensive income (loss) attributable to redeemable and noncontrolling interests | 1,436 | (679) | 2,657 | 5,427 | ||
Comprehensive income (loss) attributable to Titan | 1,541 | (8,216) | 3,945 | (7,788) | ||
Statement of Financial Position [Abstract] | ||||||
Cash and cash equivalents, end of period | 155,675 | 215,509 | 155,675 | 215,509 | ||
Certificates of deposit | 0 | 0 | $ 50,000 | |||
Accounts Receivable, Net, Current | 236,216 | 236,216 | 179,384 | |||
Inventory, Net | 331,378 | 331,378 | 272,236 | |||
Prepaid Expense and Other Assets, Current | 62,632 | 62,632 | 79,734 | |||
Total current assets | 785,901 | 785,901 | 729,181 | |||
Property, Plant and Equipment, Net | 440,078 | 440,078 | 437,201 | |||
Equity Method Investments | 0 | 0 | 0 | |||
Other Assets, Noncurrent | 103,931 | 103,931 | 99,514 | |||
Total assets | 1,329,910 | 1,329,910 | 1,265,896 | |||
Short-term debt | 36,174 | 36,174 | 97,412 | |||
Accounts payable | 184,330 | 184,330 | 148,255 | |||
Other current liabilities | 133,631 | 133,631 | 120,437 | |||
Total current liabilities | 354,135 | 354,135 | 366,104 | |||
Long-term debt | 411,230 | 411,230 | 408,760 | |||
Liabilities, Other than Long-term Debt, Noncurrent | 102,418 | 102,418 | 93,344 | |||
Intercompany Accounts, Net | 0 | 0 | 0 | |||
Redeemable noncontrolling interest | 111,016 | 102,793 | 111,016 | 102,793 | 104,809 | $ 77,174 |
Stockholders' Equity Attributable to Parent | 355,931 | 355,931 | 296,817 | |||
Stockholders' Equity Attributable to Noncontrolling Interest | (4,820) | (4,820) | (3,938) | |||
Total liabilities and equity | 1,329,910 | 1,329,910 | 1,265,896 | |||
Statement of Cash Flows [Abstract] | ||||||
Net cash provided by (used for) operating activities | (15,212) | 53,984 | ||||
Capital expenditures | (23,580) | (30,846) | ||||
Certificates of deposit | 50,000 | 0 | ||||
Payments for (Proceeds from) Other Investing Activities | 1,293 | 1,687 | ||||
Net cash provided by (used for) investing activities | 27,713 | (29,159) | ||||
Proceeds from borrowings | 33,540 | 2,390 | ||||
Repayments of Other Debt | (41,003) | (14,042) | ||||
Payments of Dividends, Common Stock | (868) | (810) | ||||
Net cash provided by (used for) financing activities | (8,331) | (12,462) | ||||
Effect of Exchange Rate on Cash and Cash Equivalents | 3,678 | 2,958 | ||||
Cash and Cash Equivalents, Period Increase (Decrease) | 7,848 | 15,321 | ||||
Cash and cash equivalents, end of period | 155,675 | 215,509 | 155,675 | 215,509 | ||
Parent Company [Member] | ||||||
Income Statement [Abstract] | ||||||
Net sales | 0 | 0 | 0 | 0 | ||
Cost of sales | 99 | 87 | 256 | 659 | ||
Gross profit (loss) | (99) | (87) | (256) | (659) | ||
Selling, General and Administrative Expense | 2,100 | 2,556 | 10,038 | 7,907 | ||
Research and Development Expense | 0 | 0 | 0 | 0 | ||
Royalty expense | 217 | 125 | 883 | 542 | ||
Loss from operations | (2,416) | (2,768) | (11,177) | (9,108) | ||
Interest expense | (7,231) | (8,288) | (21,909) | (24,382) | ||
Intercompany Interest Expense Income | 606 | 470 | 1,775 | 1,122 | ||
Foreign Currency Transaction Gain (Loss), before Tax | (2) | 0 | (2) | 0 | ||
Other income (expense) | (968) | (1,256) | (3,179) | (1,864) | ||
Loss before income taxes | (8,075) | (9,330) | (28,134) | (30,504) | ||
Provision (benefit) for income taxes | 889 | (1,935) | (620) | (2,205) | ||
Equity in Net Earnings (Loss) of Subsidiaries | (2,252) | (3,523) | 2,120 | 6,197 | ||
Net income (loss) | (11,216) | (10,918) | (25,394) | (22,102) | ||
Net income (loss) attributable to noncontrolling interests | 0 | 0 | 0 | 0 | ||
Net income (loss) attributable to Titan | (11,216) | (10,918) | (25,394) | (22,102) | ||
Comprehensive Income Statement [Abstract] | ||||||
Net income (loss) | (11,216) | (10,918) | (25,394) | (22,102) | ||
Currency translation adjustment | 14,015 | (386) | 33,040 | 21,545 | ||
Pension liability adjustments, net of tax | 180 | 465 | 1,902 | 1,200 | ||
Comprehensive income (loss) | 2,979 | (10,839) | 9,548 | 643 | ||
Net comprehensive income (loss) attributable to redeemable and noncontrolling interests | 0 | 0 | 0 | 0 | ||
Comprehensive income (loss) attributable to Titan | 2,979 | (10,839) | 9,548 | 643 | ||
Statement of Financial Position [Abstract] | ||||||
Cash and cash equivalents, end of period | 77,903 | 145,088 | 77,903 | 145,088 | ||
Certificates of deposit | 0 | 0 | 50,000 | |||
Accounts Receivable, Net, Current | 0 | 0 | 0 | |||
Inventory, Net | 0 | 0 | 0 | |||
Prepaid Expense and Other Assets, Current | 6,652 | 6,652 | 11,965 | |||
Total current assets | 84,555 | 84,555 | 148,155 | |||
Property, Plant and Equipment, Net | 2,771 | 2,771 | 4,898 | |||
Equity Method Investments | 772,243 | 772,243 | 742,679 | |||
Other Assets, Noncurrent | 19,155 | 19,155 | 23,627 | |||
Total assets | 878,724 | 878,724 | 919,359 | |||
Short-term debt | 0 | 0 | 60,148 | |||
Accounts payable | (973) | (973) | 4,187 | |||
Other current liabilities | 33,431 | 33,431 | 34,140 | |||
Total current liabilities | 32,458 | 32,458 | 98,475 | |||
Long-term debt | 396,594 | 396,594 | 395,852 | |||
Liabilities, Other than Long-term Debt, Noncurrent | 23,524 | 23,524 | 27,636 | |||
Intercompany Accounts, Net | 61,666 | 61,666 | 94,977 | |||
Redeemable noncontrolling interest | 0 | 0 | 0 | |||
Stockholders' Equity Attributable to Parent | 364,482 | 364,482 | 302,419 | |||
Stockholders' Equity Attributable to Noncontrolling Interest | 0 | 0 | 0 | |||
Total liabilities and equity | 878,724 | 878,724 | 919,359 | |||
Statement of Cash Flows [Abstract] | ||||||
Net cash provided by (used for) operating activities | (53,211) | 4,154 | ||||
Capital expenditures | (815) | (657) | ||||
Certificates of deposit | 50,000 | |||||
Payments for (Proceeds from) Other Investing Activities | 0 | 0 | ||||
Net cash provided by (used for) investing activities | 49,185 | (657) | ||||
Proceeds from borrowings | 0 | 0 | ||||
Repayments of Other Debt | (3,393) | 0 | ||||
Payments of Dividends, Common Stock | (868) | (810) | ||||
Net cash provided by (used for) financing activities | (4,261) | (810) | ||||
Effect of Exchange Rate on Cash and Cash Equivalents | 0 | 0 | ||||
Cash and Cash Equivalents, Period Increase (Decrease) | (8,287) | 2,687 | ||||
Cash and cash equivalents, end of period | 77,903 | 145,088 | 77,903 | 145,088 | ||
Guarantor Subsidiaries [Member] | ||||||
Income Statement [Abstract] | ||||||
Net sales | 138,557 | 114,743 | 429,636 | 384,917 | ||
Cost of sales | 122,129 | 99,573 | 378,875 | 334,044 | ||
Gross profit (loss) | 16,428 | 15,170 | 50,761 | 50,873 | ||
Selling, General and Administrative Expense | 12,594 | 15,407 | 43,906 | 47,879 | ||
Research and Development Expense | 972 | 776 | 2,825 | 2,221 | ||
Royalty expense | 1,435 | 1,296 | 4,140 | 3,573 | ||
Loss from operations | 1,427 | (2,309) | (110) | (2,800) | ||
Interest expense | 0 | 0 | 0 | 0 | ||
Intercompany Interest Expense Income | 983 | 0 | 2,930 | 0 | ||
Foreign Currency Transaction Gain (Loss), before Tax | 71 | 0 | 30 | 202 | ||
Other income (expense) | 33 | (62) | 203 | (220) | ||
Loss before income taxes | 2,448 | (2,247) | 2,647 | (2,378) | ||
Provision (benefit) for income taxes | 994 | (1,448) | 2,489 | 417 | ||
Equity in Net Earnings (Loss) of Subsidiaries | 0 | 0 | 0 | 0 | ||
Net income (loss) | 1,454 | (799) | 158 | (2,795) | ||
Net income (loss) attributable to noncontrolling interests | 0 | 0 | 0 | 0 | ||
Net income (loss) attributable to Titan | 1,454 | (799) | 158 | (2,795) | ||
Comprehensive Income Statement [Abstract] | ||||||
Net income (loss) | 1,454 | (799) | 158 | (2,795) | ||
Currency translation adjustment | 0 | 0 | 0 | 0 | ||
Pension liability adjustments, net of tax | 625 | 734 | 1,875 | 2,202 | ||
Comprehensive income (loss) | 2,079 | (65) | 2,033 | (593) | ||
Net comprehensive income (loss) attributable to redeemable and noncontrolling interests | 0 | 0 | 0 | 0 | ||
Comprehensive income (loss) attributable to Titan | 2,079 | (65) | 2,033 | (593) | ||
Statement of Financial Position [Abstract] | ||||||
Cash and cash equivalents, end of period | 10 | 14 | 10 | 14 | ||
Certificates of deposit | 0 | 0 | 0 | |||
Accounts Receivable, Net, Current | 65,141 | 65,141 | 43,485 | |||
Inventory, Net | 90,857 | 90,857 | 76,823 | |||
Prepaid Expense and Other Assets, Current | 21,131 | 21,131 | 21,901 | |||
Total current assets | 177,139 | 177,139 | 142,218 | |||
Property, Plant and Equipment, Net | 112,878 | 112,878 | 124,049 | |||
Equity Method Investments | 0 | 0 | 0 | |||
Other Assets, Noncurrent | 969 | 969 | 1,118 | |||
Total assets | 290,986 | 290,986 | 267,385 | |||
Short-term debt | 0 | 0 | 0 | |||
Accounts payable | 21,547 | 21,547 | 14,398 | |||
Other current liabilities | 31,579 | 31,579 | 34,475 | |||
Total current liabilities | 53,126 | 53,126 | 48,873 | |||
Long-term debt | 0 | 0 | 0 | |||
Liabilities, Other than Long-term Debt, Noncurrent | 16,516 | 16,516 | 18,473 | |||
Intercompany Accounts, Net | (278,187) | (278,187) | (300,823) | |||
Redeemable noncontrolling interest | 0 | 0 | 0 | |||
Stockholders' Equity Attributable to Parent | 499,531 | 499,531 | 500,862 | |||
Stockholders' Equity Attributable to Noncontrolling Interest | 0 | 0 | 0 | |||
Total liabilities and equity | 290,986 | 290,986 | 267,385 | |||
Statement of Cash Flows [Abstract] | ||||||
Net cash provided by (used for) operating activities | 4,107 | 5,553 | ||||
Capital expenditures | (4,472) | (5,616) | ||||
Certificates of deposit | 0 | |||||
Payments for (Proceeds from) Other Investing Activities | 366 | 73 | ||||
Net cash provided by (used for) investing activities | (4,106) | (5,543) | ||||
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) | 1 | 10 | ||||
Cash and cash equivalents, end of period | 10 | 14 | 10 | 14 | ||
Non-Guarantor Subsidiaries [Member] | ||||||
Income Statement [Abstract] | ||||||
Net sales | 232,431 | 191,452 | 663,252 | 573,286 | ||
Cost of sales | 209,095 | 171,615 | 590,801 | 516,565 | ||
Gross profit (loss) | 23,336 | 19,837 | 72,451 | 56,721 | ||
Selling, General and Administrative Expense | 25,059 | 18,385 | 61,609 | 51,926 | ||
Research and Development Expense | 1,485 | 1,821 | 5,083 | 5,569 | ||
Royalty expense | 944 | 864 | 2,716 | 2,573 | ||
Loss from operations | (4,152) | (1,233) | 3,043 | (3,347) | ||
Interest expense | (306) | (426) | (669) | (826) | ||
Intercompany Interest Expense Income | (1,589) | (470) | (4,705) | (1,122) | ||
Foreign Currency Transaction Gain (Loss), before Tax | 746 | 398 | 20 | 7,201 | ||
Other income (expense) | (2,106) | (2,260) | (5,422) | (8,448) | ||
Loss before income taxes | (3,195) | 529 | 3,111 | 10,354 | ||
Provision (benefit) for income taxes | 513 | 1,309 | 4,095 | 4,366 | ||
Equity in Net Earnings (Loss) of Subsidiaries | (2,306) | (4,037) | (10,715) | (6,243) | ||
Net income (loss) | (6,014) | (4,817) | (11,699) | (255) | ||
Net income (loss) attributable to noncontrolling interests | 800 | (966) | 1,424 | (1,099) | ||
Net income (loss) attributable to Titan | (6,814) | (3,851) | (13,123) | 844 | ||
Comprehensive Income Statement [Abstract] | ||||||
Net income (loss) | (6,014) | (4,817) | (11,699) | (255) | ||
Currency translation adjustment | 14,015 | (386) | 33,040 | (21,545) | ||
Pension liability adjustments, net of tax | (445) | (269) | 27 | (1,002) | ||
Comprehensive income (loss) | 7,556 | (5,472) | 21,368 | (22,802) | ||
Net comprehensive income (loss) attributable to redeemable and noncontrolling interests | 1,436 | (679) | 2,657 | 5,427 | ||
Comprehensive income (loss) attributable to Titan | 6,120 | (4,793) | 18,711 | (28,229) | ||
Statement of Financial Position [Abstract] | ||||||
Cash and cash equivalents, end of period | 77,762 | 70,407 | 77,762 | 70,407 | ||
Certificates of deposit | 0 | 0 | 0 | |||
Accounts Receivable, Net, Current | 171,075 | 171,075 | 135,899 | |||
Inventory, Net | 240,521 | 240,521 | 195,413 | |||
Prepaid Expense and Other Assets, Current | 34,849 | 34,849 | 45,868 | |||
Total current assets | 524,207 | 524,207 | 438,808 | |||
Property, Plant and Equipment, Net | 324,429 | 324,429 | 308,254 | |||
Equity Method Investments | 75,145 | 75,145 | 87,385 | |||
Other Assets, Noncurrent | 83,807 | 83,807 | 74,769 | |||
Total assets | 1,007,588 | 1,007,588 | 909,216 | |||
Short-term debt | 36,174 | 36,174 | 37,264 | |||
Accounts payable | 163,756 | 163,756 | 129,670 | |||
Other current liabilities | 68,621 | 68,621 | 51,822 | |||
Total current liabilities | 268,551 | 268,551 | 218,756 | |||
Long-term debt | 14,636 | 14,636 | 12,908 | |||
Liabilities, Other than Long-term Debt, Noncurrent | 62,378 | 62,378 | 47,235 | |||
Intercompany Accounts, Net | 216,521 | 216,521 | 205,846 | |||
Redeemable noncontrolling interest | 111,016 | 111,016 | 104,809 | |||
Stockholders' Equity Attributable to Parent | 339,306 | 339,306 | 323,600 | |||
Stockholders' Equity Attributable to Noncontrolling Interest | (4,820) | (4,820) | (3,938) | |||
Total liabilities and equity | 1,007,588 | 1,007,588 | 909,216 | |||
Statement of Cash Flows [Abstract] | ||||||
Net cash provided by (used for) operating activities | 33,892 | 44,277 | ||||
Capital expenditures | (18,293) | (24,573) | ||||
Certificates of deposit | 0 | |||||
Payments for (Proceeds from) Other Investing Activities | 927 | 1,614 | ||||
Net cash provided by (used for) investing activities | (17,366) | (22,959) | ||||
Proceeds from borrowings | 33,540 | 2,390 | ||||
Repayments of Other Debt | (37,610) | (14,042) | ||||
Payments of Dividends, Common Stock | 0 | 0 | ||||
Net cash provided by (used for) financing activities | (4,070) | (11,652) | ||||
Effect of Exchange Rate on Cash and Cash Equivalents | 3,678 | 2,958 | ||||
Cash and Cash Equivalents, Period Increase (Decrease) | 16,134 | 12,624 | ||||
Cash and cash equivalents, end of period | 77,762 | 70,407 | 77,762 | 70,407 | ||
Consolidation, Eliminations [Member] | ||||||
Income Statement [Abstract] | ||||||
Net sales | 0 | 0 | 0 | 0 | ||
Cost of sales | 0 | 0 | 0 | 0 | ||
Gross profit (loss) | 0 | 0 | 0 | 0 | ||
Selling, General and Administrative Expense | 0 | 0 | 0 | 0 | ||
Research and Development Expense | 0 | 0 | 0 | 0 | ||
Royalty expense | 0 | 0 | 0 | 0 | ||
Loss from operations | 0 | 0 | 0 | 0 | ||
Interest expense | 0 | 0 | 0 | 0 | ||
Intercompany Interest Expense Income | 0 | 0 | 0 | 0 | ||
Foreign Currency Transaction Gain (Loss), before Tax | 0 | 0 | ||||
Other income (expense) | 0 | 0 | 0 | 0 | ||
Loss before income taxes | 0 | 0 | 0 | 0 | ||
Provision (benefit) for income taxes | 0 | 0 | 0 | 0 | ||
Equity in Net Earnings (Loss) of Subsidiaries | 4,558 | 7,560 | 8,595 | 46 | ||
Net income (loss) | 4,558 | 7,560 | 8,595 | 46 | ||
Net income (loss) attributable to noncontrolling interests | 0 | 0 | 0 | 0 | ||
Net income (loss) attributable to Titan | 4,558 | 7,560 | 8,595 | 46 | ||
Comprehensive Income Statement [Abstract] | ||||||
Net income (loss) | 4,558 | 7,560 | 8,595 | 46 | ||
Currency translation adjustment | (14,015) | 386 | (33,040) | 21,545 | ||
Pension liability adjustments, net of tax | (180) | (465) | (1,902) | (1,200) | ||
Comprehensive income (loss) | (9,637) | 7,481 | (26,347) | 20,391 | ||
Net comprehensive income (loss) attributable to redeemable and noncontrolling interests | 0 | 0 | 0 | 0 | ||
Comprehensive income (loss) attributable to Titan | (9,637) | $ 7,481 | (26,347) | $ 20,391 | ||
Statement of Financial Position [Abstract] | ||||||
Cash and cash equivalents, end of period | 0 | 0 | ||||
Certificates of deposit | 0 | |||||
Accounts Receivable, Net, Current | 0 | 0 | 0 | |||
Inventory, Net | 0 | 0 | 0 | |||
Prepaid Expense and Other Assets, Current | 0 | 0 | 0 | |||
Total current assets | 0 | 0 | 0 | |||
Property, Plant and Equipment, Net | 0 | 0 | 0 | |||
Equity Method Investments | (847,388) | (847,388) | (830,064) | |||
Other Assets, Noncurrent | 0 | 0 | 0 | |||
Total assets | (847,388) | (847,388) | (830,064) | |||
Short-term debt | 0 | 0 | 0 | |||
Accounts payable | 0 | 0 | 0 | |||
Other current liabilities | 0 | 0 | 0 | |||
Total current liabilities | 0 | 0 | 0 | |||
Long-term debt | 0 | 0 | 0 | |||
Liabilities, Other than Long-term Debt, Noncurrent | 0 | 0 | 0 | |||
Intercompany Accounts, Net | 0 | 0 | 0 | |||
Redeemable noncontrolling interest | 0 | 0 | 0 | |||
Stockholders' Equity Attributable to Parent | (847,388) | (847,388) | (830,064) | |||
Stockholders' Equity Attributable to Noncontrolling Interest | 0 | 0 | 0 | |||
Total liabilities and equity | (847,388) | (847,388) | $ (830,064) | |||
Statement of Cash Flows [Abstract] | ||||||
Cash and cash equivalents, end of period | $ 0 | $ 0 |
Uncategorized Items - twi093020
Label | Element | Value |
Consolidation, Eliminations [Member] | ||
Cash and Cash Equivalents, at Carrying Value | us-gaap_CashAndCashEquivalentsAtCarryingValue | $ 0 |
Guarantor Subsidiaries [Member] | ||
Cash and Cash Equivalents, at Carrying Value | us-gaap_CashAndCashEquivalentsAtCarryingValue | 4,000 |
Cash and Cash Equivalents, at Carrying Value | us-gaap_CashAndCashEquivalentsAtCarryingValue | 9,000 |
Parent Company [Member] | ||
Cash and Cash Equivalents, at Carrying Value | us-gaap_CashAndCashEquivalentsAtCarryingValue | 86,190,000 |
Cash and Cash Equivalents, at Carrying Value | us-gaap_CashAndCashEquivalentsAtCarryingValue | 142,401,000 |
Non-Guarantor Subsidiaries [Member] | ||
Cash and Cash Equivalents, at Carrying Value | us-gaap_CashAndCashEquivalentsAtCarryingValue | 61,628,000 |
Cash and Cash Equivalents, at Carrying Value | us-gaap_CashAndCashEquivalentsAtCarryingValue | $ 57,783,000 |