Document and Entity Information
Document and Entity Information Document - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Feb. 26, 2021 | Jun. 30, 2020 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2020 | ||
Document Transition Report | false | ||
Entity File Number | 1-12936 | ||
Entity Registrant Name | TITAN INTERNATIONAL, INC. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 36-3228472 | ||
Entity Address, Address Line One | 2701 Spruce Street | ||
Entity Address, City or Town | Quincy | ||
Entity Address, State or Province | IL | ||
Entity Address, Postal Zip Code | 62301 | ||
City Area Code | 217 | ||
Local Phone Number | 228-6011 | ||
Title of 12(b) Security | Common stock, $0.0001 par value | ||
Trading Symbol | TWI | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 89,000,000 | ||
Entity Common Stock, Shares Outstanding | 61,460,936 | ||
Amendment Flag | false | ||
Entity Central Index Key | 0000899751 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --12-31 | ||
ICFR Auditor Attestation Flag | true |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenue from Contract with Customer, Excluding Assessed Tax | $ 1,259,313 | $ 1,448,666 | $ 1,602,408 |
Cost of Goods and Services Sold | 1,130,194 | 1,319,662 | 1,404,142 |
Asset Impairment Cost | 14,800 | 0 | 0 |
Gross profit | 114,319 | 129,004 | 198,266 |
Selling, general and administrative expenses | 130,942 | 137,697 | 134,789 |
Research and development expenses | 9,013 | 9,859 | 11,146 |
Royalty expense | 9,715 | 9,880 | 10,087 |
Loss from operations | (35,351) | (28,432) | 42,244 |
Interest expense | (30,554) | (32,004) | (28,349) |
Loss on senior note repurchase | 8,657 | 0 | 0 |
Foreign exchange (loss) gain | (11,025) | 3,999 | (11,179) |
Other income | 18,799 | 8,393 | 17,091 |
(Loss) income before income taxes | (58,131) | (48,044) | 19,807 |
Provision for income taxes | 6,946 | 3,475 | 6,762 |
Net loss | (65,077) | (51,519) | 13,045 |
Net loss attributable to noncontrolling interests | 4,689 | 3,094 | 3,042 |
Net (loss) income attributable to Titan | (60,388) | (48,425) | 16,087 |
Redemption value adjustment | 0 | (1,928) | (12,207) |
Net (loss) income applicable to common shareholders | $ (60,388) | $ (50,353) | $ 3,880 |
Earnings (loss) per common share: | |||
Earnings Per Share, Basic | $ (0.99) | $ (0.84) | $ 0.06 |
Earnings Per Share, Diluted | $ (0.99) | $ (0.84) | $ 0.06 |
Average common shares outstanding: | |||
Basic | 60,818 | 60,100 | 59,820 |
Diluted | 60,818 | 60,100 | 59,909 |
Dividends declared per common share: | $ 0.01 | $ 0.02 | $ 0.02 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Net (loss) income | $ (65,077) | $ (51,519) | $ 13,045 |
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Tax | (413) | 0 | 0 |
Currency translation adjustment | (4,140) | (8,949) | (41,966) |
Pension liability adjustments, net of tax of $43, $133, and $(104), respectively | 3,454 | 6,566 | (3,650) |
Comprehensive loss | (66,176) | (53,902) | (32,571) |
Net comprehensive loss attributable to redeemable and noncontrolling interests | (7,185) | (1,533) | (6,488) |
Comprehensive loss attributable to Titan | $ (58,991) | $ (52,369) | $ (26,083) |
(Parenthetical)
(Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | |||
Unrealized gain (loss) on investments, tax | $ 0 | $ 0 | $ 0 |
Noncash Titan Europe Plc gain, tax | 0 | 0 | 0 |
Pension liaiblity adjustments, tax | $ 43 | $ 133 | $ (104) |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Current assets | ||
Cash and cash equivalents | $ 117,431 | $ 66,799 |
Accounts receivable (net of allowance of $3,782 and $3,714, respectively) | 193,014 | 185,238 |
Inventories | 293,679 | 333,356 |
Disposal Group, Including Discontinued Operation, Other Assets, Current | 0 | 7,203 |
Prepaid and other current assets | 54,475 | 58,869 |
Total current assets | 658,599 | 651,465 |
Property, plant and equipment, net | 319,854 | 367,595 |
Operating Lease, Right-of-Use Asset | 24,356 | 23,914 |
Deferred income taxes | 2,591 | 2,331 |
Other long-term assets | 26,484 | 69,002 |
Total assets | 1,031,884 | 1,114,307 |
Current liabilities | ||
Short-term debt | 31,119 | 61,253 |
Accounts payable | 167,210 | 158,647 |
Other current liabilities | 131,382 | 107,253 |
Total current liabilities | 329,711 | 327,153 |
Long-term debt | 433,584 | 438,469 |
Deferred income taxes | 3,895 | 6,672 |
Other long-term liabilities | 63,429 | 78,025 |
Total liabilities | 830,619 | 850,319 |
Redeemable noncontrolling interest | 25,000 | 25,000 |
Titan stockholders' equity | ||
Common stock ($0.0001 par, 120,000,000 shares authorized, 61,466,593 issued at December 2020 and 60,710,983 at December 2019) | 0 | 0 |
Additional paid-in capital | 532,742 | 532,070 |
Retained deficit | (135,025) | (74,334) |
Treasury stock (at cost, 89,612 shares at December 2020 and 427,771 shares at December 2019) | (1,199) | (4,234) |
Accumulated other comprehensive loss | (217,254) | (218,651) |
Total Titan stockholders’ equity | 179,264 | 234,851 |
Noncontrolling interests | (2,999) | 4,137 |
Total equity | 176,265 | 238,988 |
Total liabilities and equity | $ 1,031,884 | $ 1,114,307 |
(Parentheticals)
(Parentheticals) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Assets [Abstract] | ||
Accounts Receivable, Allowance for Credit Loss, Current | $ 3,782 | $ 3,714 |
Liabilities and Equity [Abstract] | ||
Common Stock, No Par Value | $ 0 | $ 0 |
Common Stock, Shares Authorized | 120,000,000 | 120,000,000 |
Treasury Stock, Shares | 89,612 | 427,771 |
Common Stock, Shares, Issued | 61,466,593 | 60,710,983 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Thousands | Total | Revision of Prior Period, Accounting Standards Update, Adjustment | Common Stock [Member] | Additional paid-in capital [Member] | Retained earnings [Member] | Treasury stock [Member] | Treasury stock reserved for contractual obligations | Accumulated other comprehensive income (loss) [Member] | Parent [Member] | Noncontrolling interest [Member] | AOCI, Derivative Qualifying as Hedge, Excluded Component, Parent |
Stock Issued During Period, Value, Acquisitions | $ (149) | $ 1,032 | $ 4,325 | $ 5,357 | $ (5,208) | ||||||
Balance, Beginning at Dec. 31, 2017 | 310,084 | $ 0 | 531,708 | $ (44,022) | $ (8,606) | $ (1,075) | (157,076) | 320,929 | (10,845) | ||
Balance, Beginning (in shares) at Dec. 31, 2017 | 59,800,559 | ||||||||||
Net (loss) income | 13,045 | 16,087 | 16,087 | (1,951) | |||||||
Net Income (Loss) Attributable to Nonredeemable Noncontrolling Interest | 14,136 | ||||||||||
CTA, net of tax | (41,966) | (38,520) | (38,520) | 1,050 | |||||||
Temporary Equity, Foreign Currency Translation Adjustments | (37,470) | ||||||||||
Pension liability adjustments, net of tax | (3,650) | (3,650) | (3,650) | ||||||||
Dividends declared | (1,201) | ||||||||||
Note conversion | (1,201) | (1,201) | |||||||||
Prior Period Reclassification Adjustment | $ (123) | ||||||||||
Restricted stock awards (in shares) | 376,500 | ||||||||||
Redemption value adjustment | $ (12,207) | (12,207) | (12,207) | ||||||||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 61,897 | ||||||||||
Stock-based compensation | 1,130 | 844 | 286 | 1,130 | |||||||
Variable Interest Entity, Members Draw | (2,448) | 0 | (2,448) | ||||||||
Issuance of treasury stock under 401(k) plan | 561 | 72 | 489 | 561 | |||||||
Issuance of treasury stock under 401(k) plan (in shares) | 54,517 | ||||||||||
Balance, Ending at Dec. 31, 2018 | 270,097 | 519,498 | (29,048) | (7,831) | 0 | (203,571) | 279,048 | (8,951) | |||
Balance, Ending (in shares) at Dec. 31, 2018 | 59,916,973 | ||||||||||
Noncontrolling interests | $ 35 | ||||||||||
Titan stockholders' equity | (88) | ||||||||||
Retained deficit | (88) | ||||||||||
Common Stock, Shares Held in Employee Trust | 1,188 | 113 | 1,075 | 1,188 | |||||||
Stock Issued During Period, Value, Acquisitions | 0 | (6,203) | 6,203 | 0 | |||||||
Change During Period Common Stock Shares Held In Employee Trust | (2,008) | 0 | |||||||||
Net (loss) income | (51,519) | (48,425) | (48,425) | (2,275) | |||||||
Net Income (Loss) Attributable to Nonredeemable Noncontrolling Interest | (50,700) | ||||||||||
CTA, net of tax | (8,949) | (10,510) | (10,510) | 878 | |||||||
Temporary Equity, Foreign Currency Translation Adjustments | (9,632) | ||||||||||
Pension liability adjustments, net of tax | 6,566 | 6,566 | 6,566 | ||||||||
Dividends declared | (1,207) | (1,207) | (1,207) | ||||||||
Prior Period Reclassification Adjustment | $ 587 | ||||||||||
Restricted stock awards (in shares) | 355,201 | ||||||||||
Noncontrolling Interest, Period Increase (Decrease) | 9,437 | 9,437 | 15,445 | ||||||||
Redemption value adjustment | $ (1,928) | (1,928) | (1,928) | ||||||||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 100,118 | ||||||||||
Stock-based compensation | 1,381 | 213 | 1,168 | 1,381 | |||||||
Variable Interest Entity, Members Draw | (2,968) | 0 | (2,968) | ||||||||
Issuance of treasury stock under 401(k) plan | 1,076 | (1,353) | 2,429 | 1,076 | |||||||
Issuance of treasury stock under 401(k) plan (in shares) | 266,121 | ||||||||||
Balance, Ending at Dec. 31, 2019 | 238,988 | $ 0 | 532,070 | (74,334) | (4,234) | 0 | (218,651) | 234,851 | 4,137 | ||
Balance, Ending (in shares) at Dec. 31, 2019 | 60,283,212 | ||||||||||
Loss attributable to redeemable noncontrolling interest | (1,091) | ||||||||||
Currency translation | (4,496) | ||||||||||
AOCI before Tax, Attributable to Parent | (4,933) | ||||||||||
Noncontrolling interests | 4,137 | ||||||||||
Titan stockholders' equity | 234,851 | 587 | |||||||||
Retained deficit | (74,334) | $ (4,346) | |||||||||
Common Stock, Shares Held in Employee Trust | 2,008 | ||||||||||
Change During Period Common Stock Shares Held In Employee Trust | 608 | 0 | (608) | ||||||||
Net (loss) income | (65,077) | (60,388) | (60,388) | (4,689) | |||||||
Net Income (Loss) Attributable to Nonredeemable Noncontrolling Interest | (65,077) | ||||||||||
CTA, net of tax | (4,140) | (1,644) | (1,644) | (2,496) | |||||||
Temporary Equity, Foreign Currency Translation Adjustments | (4,140) | ||||||||||
Pension liability adjustments, net of tax | 3,454 | 3,454 | 3,454 | ||||||||
Derivative, Loss on Derivative | (413) | 413 | $ 413 | ||||||||
Dividends declared | $ (303) | (303) | (303) | ||||||||
Restricted stock awards (in shares) | 1,026,946 | ||||||||||
Exercise of stock options (in shares) | 0 | ||||||||||
Redemption value adjustment | $ 0 | ||||||||||
Stock-based compensation | 2,462 | 1,562 | 900 | 2,462 | |||||||
Variable Interest Entity, Members Draw | (559) | 0 | (559) | ||||||||
Issuance of treasury stock under 401(k) plan | 1,245 | (890) | 2,135 | 1,245 | |||||||
Issuance of treasury stock under 401(k) plan (in shares) | 653,211 | ||||||||||
Balance, Ending at Dec. 31, 2020 | 176,265 | $ 0 | $ 532,742 | $ (135,025) | $ (1,199) | $ 0 | $ (217,254) | $ 179,264 | $ (2,999) | ||
Balance, Ending (in shares) at Dec. 31, 2020 | 61,376,981 | ||||||||||
Loss attributable to redeemable noncontrolling interest | (819) | ||||||||||
Currency translation | 683 | ||||||||||
Noncontrolling interests | (2,999) | ||||||||||
Titan stockholders' equity | 179,264 | ||||||||||
Retained deficit | $ (135,025) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cash flows from operating activities: | |||
Net (loss) income | $ (65,077) | $ (51,519) | $ 13,045 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 54,655 | 54,376 | 57,618 |
Asset impairment | 20,823 | 0 | 0 |
Deferred income tax provision | (3,007) | (2,300) | (2,291) |
Gain on building and investment sale | 4,152 | 4,695 | 0 |
Loss on senior note repurchase | (8,657) | 0 | 0 |
Stock-based compensation | 2,462 | 1,381 | 1,130 |
Issuance of treasury stock under 401(k) plan | 1,245 | 1,076 | 561 |
Foreign currency translation loss (gain) | 12,444 | (4,657) | 3,149 |
(Increase) decrease in assets: | |||
Accounts receivable | (15,236) | 56,832 | (36,092) |
Inventories | 37,747 | 63,654 | (77,919) |
Prepaid and other current assets | 2,312 | 1,912 | (5,377) |
Other long-term assets | (1,071) | (1,842) | (13,054) |
Increase (decrease) in liabilities: | |||
Accounts payable | 11,942 | (53,183) | 29,364 |
Other current liabilities | 24,025 | (10,155) | (2,866) |
Other liabilities | (13,226) | (5,438) | (3,444) |
Net cash provided by (used for) operating activities | 57,229 | 45,442 | (36,176) |
Cash flows from investing activities: | |||
Capital expenditures | (21,680) | (36,414) | (39,000) |
Proceeds from Sale of Equity Method Investments | 32,852 | 19,021 | 0 |
Proceeds from Insurance Settlement, Investing Activities | 8,657 | 0 | 0 |
Payment related to redeemable noncontrolling interest agreement | 0 | (71,722) | 0 |
Other | 13,392 | (3,476) | 2,069 |
Net cash provided by (used for) investing activities | 33,221 | (92,591) | (36,931) |
Cash flows from financing activities: | |||
Proceeds from borrowings | 91,639 | 134,227 | 57,294 |
Payment on debt | (126,393) | (100,901) | (38,557) |
Dividends paid | (603) | (1,204) | (1,201) |
Proceeds from (Payments for) Other Financing Activities | (3,208) | 0 | 0 |
Net cash used for financing activities | (38,565) | 32,122 | 17,536 |
Effect of exchange rate changes on cash | (1,253) | 141 | (6,314) |
Net increase (decrease) in cash and cash equivalents | 50,632 | (14,886) | (61,885) |
Cash and cash equivalents, beginning of year | 66,799 | 81,685 | 143,570 |
Cash and cash equivalents, end of year | 117,431 | 66,799 | 81,685 |
Supplemental Cash Flow Information [Abstract] | |||
Interest Paid, Excluding Capitalized Interest, Operating Activities | 29,233 | 32,498 | 30,800 |
Income taxes paid, net of refunds received | 12,355 | 10,416 | 12,435 |
Cash Flow, Noncash Investing and Financing Activities Disclosure [Abstract] | |||
Transfer from Investments | $ 0 | $ 0 | 14,268 |
Stockholders' Equity, Other | $ (1,201) |
DESCRIPTION OF BUSINESS AND SIG
DESCRIPTION OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
DESCRIPTION OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES | DESCRIPTION OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES Business Titan International, Inc. and its subsidiaries (Titan or the Company) are leading manufacturers of wheels, tires, and undercarriage systems and components for off-highway vehicles used in the agricultural, earthmoving/construction, and consumer segments. Titan manufactures both wheels and tires for the majority of these market applications, allowing the Company to provide the value-added service of delivering complete wheel and tire assemblies. The Company offers a broad range of products that are manufactured to meet the specifications of original equipment manufacturers (OEMs) and/or the requirements of aftermarket customers. Principles of consolidation The consolidated financial statements include the accounts of all majority-owned subsidiaries and variable interest entities in which Titan is the primary beneficiary. Investments in companies in which Titan does not own a majority interest, but which Titan has the ability to exercise significant influence over operating and financial policies are accounted for using the equity method. Investments in other companies are carried at cost. All significant intercompany accounts and transactions have been eliminated. COVID-19 pandemic The COVID-19 pandemic had an impact on the Company in 2020. Titan's workforce and operations were curtailed during March through May 2020 in some of the countries where the Company has operations and where COVID-19 has been widespread (such as the Company’s European and Latin America locations). The Company’s operations resumed and improved over the course of the year, while additional sanitary and other protective health measures increased operating costs. The Company's operations will continue to be impacted, depending on the duration and severity of the COVID-19 pandemic, the length of time it takes for more normal economic and operating conditions to resume, additional governmental actions that may be taken and/or extensions of time for restrictions that have been imposed to date and numerous other uncertainties. Cash and cash equivalents The Company considers short-term debt securities with an original maturity of three months or less to be cash equivalents. The cash in the Company's U.S. banks is not fully insured by the Federal Deposit Insurance Corporation. The Company had $100.4 million and $60.6 million of cash in foreign bank accounts at December 31, 2020 and 2019, respectively. The Company's cash in its foreign bank accounts is not fully insured. Accounts receivable and allowance for doubtful accounts The Company carries its accounts receivable at their face amounts less an allowance for doubtful accounts. An allowance for uncollectible receivables is recorded based upon known bad debt risks and past loss history. Actual collection experience may differ from the current estimate of net receivables. 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. Fixed assets Property, plant, and equipment have been recorded at cost. Depreciation is provided using the straight-line method over the following estimated useful lives of the related assets: Years Building and improvements 25 - 40 Machinery and equipment 7 - 20 Tools, dies, and molds 2 - 9 Maintenance and repairs are expensed as incurred. When property, plant, and equipment are retired or otherwise disposed of, the related cost and accumulated depreciation are eliminated, and any gain or loss on disposition is included in the accompanying Consolidated Statements of Operations. Interest is capitalized on fixed asset projects which are constructed over a period of time. The amount of interest capitalized is determined by applying a weighted average interest rate to the average amount of accumulated expenditures for the asset during the period. The interest rate used is based on the rates applicable to borrowings outstanding during the period. No interest was capitalized in 2020, 2019 or 2018. Fair value of financial instruments The Company records all financial instruments, including cash and cash equivalents, accounts receivable, notes receivable, accounts payable, 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 6.50% senior secured notes due 2023, issued on November 20, 2017 (senior secured notes) were carried at cost of $396.9 million at December 31, 2020. The fair value of the senior secured notes due 2023 at December 31, 2020, as obtained through an independent pricing source, was approximately $370.5 million. Investments The Company sold its remaining equity method investment in Wheels India Limited (Wheels India) during 2020 resulting in net proceeds of $32.9 million and net loss of $0.7 million for the year ended December 31, 2020. This equity method investment was included in other long-term assets in the Consolidated Balance Sheets for the year ended December 31, 2019. The Company assesses the carrying value of its equity method investments whenever events and circumstances indicate that the carrying values may not be recoverable. Investment write-downs, if necessary, are recognized in operating results when expected undiscounted future cash flows are less than the carrying value of the asset. These write-downs, if any, are measured as the excess of the carrying value of the asset over the discounted expected future cash flows or the estimated fair value of the asset. The Company uses the cost method to account for investments in entities that are not consolidated or accounted for under the equity method. Under the cost method, investments are reported at cost in other long-term assets on the Consolidated Balance Sheets. The fair values of cost method investments are not estimated if there are no identified events or changes in circumstances that may have a significant adverse effect on the fair values of the investments. Foreign currency translation The financial statements of the Company’s foreign subsidiaries are translated to United States currency. Assets and liabilities are translated to United States dollars at period-end exchange rates. Income and expense items are translated at average rates of exchange prevailing during the period. Translation adjustments are included in “Accumulated other comprehensive loss” in stockholders’ equity. Gains and losses that result from foreign currency transactions are included in the accompanying Consolidated Statements of Operations. Revenue recognition The Company records sales revenue when products are shipped to customers and when our performance obligations with our customer are satisfied. Our obligations under the contracts are satisfied when we transfer control of our products to our customer which is generally upon shipment. Provisions are established for sales returns and uncollectible accounts based on historical experience. Should trends change, adjustments would be necessary to the estimated provisions. Cost of sales Cost of sales is comprised primarily of direct materials and supplies consumed in the manufacturing of the Company’s products, as well as manufacturing labor, depreciation expense, and overhead expense necessary to acquire and convert the purchased materials and supplies into a finished product. Cost of sales also includes all purchasing, receiving, inspection, internal transfers, and related distribution costs. Selling, general, and administrative expense Selling, general, and administrative (SG&A) expense is comprised primarily of sales commissions, marketing expense, selling, and administrative wages, information system costs, legal fees, bank charges, professional fees, depreciation and amortization expense on non-manufacturing assets, and other administrative items. Research and development expense Research and development (R&D) expenses are expensed as incurred. R&D costs were $9.0 million, $9.9 million, and $11.1 million for the years ended December 31, 2020, 2019, and 2018, respectively. Advertising Advertising expenses are included in SG&A expense and are expensed as incurred. Advertising costs were approximately $2.3 million, $3.7 million and $3.1 million for the years ended December 31, 2020, 2019 and 2018, respectively. Warranty costs The Company provides limited warranties on workmanship on its products in all market segments. The provision for estimated warranty costs is made in the period when such costs become probable and is based on past warranty experience. See Note 9 for additional information. Income taxes Deferred income tax provisions are determined using the liability method to recognize deferred tax assets and liabilities. This method is based upon differences between the financial statement carrying amounts and the respective tax basis of assets and liabilities using enacted tax rates that are expected to apply in the years the temporary differences are expected to be settled or realized. Valuation allowances are recorded where it is considered more likely than not that some portion or all of the deferred tax assets will not be realized. Tax benefits are recognized only for tax positions that are more likely than not to be sustained upon examination by tax authorities. Earnings per share Basic earnings per share (EPS) is computed by dividing consolidated net earnings applicable to common shareholders by the weighted average number of common shares outstanding. Diluted EPS is computed by dividing adjusted consolidated net earnings applicable to common shareholders by the sum of the weighted average number of common shares outstanding and the weighted average number of potential common shares outstanding. Potential common shares consist of outstanding options under the Company’s stock compensation plans. Environmental liabilities Environmental expenditures that relate to current operations are expensed or capitalized as appropriate. Expenditures that relate to an existing condition caused by past operations and that do not contribute to current or future revenue are expensed. Liabilities are recorded when environmental assessments and/or remedial efforts are probable and can be reasonably estimated. Stock-based compensation The Company has one stock-based compensation plan, which is described in Note 24. Compensation expense for stock-based compensation is recognized over the requisite service period at the estimated fair value of the award at the grant date. The Company granted 80,000 stock options in 2018. The Company did not grant stock options in 2020 and 2019. The Company granted 1,026,946, 355,201 and 376,500 restricted stock awards in 2020, 2019 and 2018, respectively. Use of estimates The policies utilized by the Company in the preparation of the financial statements conform to United States generally accepted accounting principles (US GAAP or GAAP) 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. Reclassifications Certain reclassifications have been made to prior year financial statements to conform to classifications used in the current year. These reclassifications had no impact on net loss, shareholders’ equity or cash flows as previously reported. Adoption of new accounting standards In June 2016, the Financial Accounting Standards Board (the FASB) issued Accounting Standards Update (ASU) No. 2016-13, "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments", which amends the current accounting guidance and requires the measurement of all expected losses based on historical experience, current conditions and reasonable and supportable forecasts. For trade receivables, loans, and other financial instruments, we are required to use a forward-looking expected loss model that reflects losses that are probable rather than the incurred loss model for recognizing credit losses. The standard became effective for interim and annual periods beginning after December 15, 2019. In addition, the FASB issued ASU 2019-04, Codification Improvements to Topic 326, which provides clarity on certain aspects of the amendments in ASU 2016-13. The Company adopted this guidance prospectively on January 1, 2020 and it did not have a material effect on the Company's condensed consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-13, "Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement." The amendments in this update modify the disclosure requirements on fair value measurements in Topic 820, Fair Value Measurement. The amendments in this update are effective for fiscal years beginning after December 15, 2019. We adopted this ASU on January 1, 2020 and it did not have a material effect on the Company's condensed consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-14, "Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans." The amendments in this update modify the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. The amendments in this update are effective for fiscal years ending after December 15, 2020. We adopted this ASU on December 31, 2020 and it did not have a material effect on the Company's condensed consolidated financial statements. See Note 23 for the adopted disclosure requirements as prescribed under ASU No. 2018-14. In March 2020, the SEC issued a final rule that amends the disclosure requirements related to certain registered securities under SEC Regulation S-X Rule 3-10 with respect to the disclosure requirements related to issuers and guarantors of guaranteed debt securities. The final rule allows registrants to provide alternative financial disclosures in either the registrant’s MD&A or financial statements, rather than the previous requirement under Rule 3-10, which required condensed consolidating financial information within the financial statements. It also simplifies the requirements in Rule 3-10 that currently must be met for a parent company to qualify for exceptions allowing it to provide alternative disclosures rather than full audited financial statements. The final rule also reduces the periods for which summarized financial information is required to be presented to the most recent (1) annual period and (2) year-to-date interim period. The final rule applies to annual reports on Form 10-K for fiscal years ending after January 4, 2021 and quarterly reports on Form 10-Q for quarterly periods ending after January 4, 2021 and registrants may voluntarily comply with the final rule before the effective date. The Company adopted the disclosure requirements as of December 31, 2020 and it did not have a material effect on the Company’s consolidated financial statements. Accounting standards issued but not yet adopted In December 2019, the FASB issued ASU 2019-12, Simplifying the Accounting for Income Taxes, as part of its simplification initiative to reduce the cost and complexity in accounting for income taxes. ASU 2019-12 removes certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period, and the recognition of deferred tax liabilities for outside basis differences. ASU 2019-12 also amends other aspects of the guidance to help simplify and promote consistent application of GAAP. The guidance is effective for interim and annual periods beginning after December 15, 2020, with early adoption permitted. We do not believe this will have a material impact on our financial statements. |
ACCOUNTS RECEIVABLE
ACCOUNTS RECEIVABLE | 12 Months Ended |
Dec. 31, 2020 | |
Receivables [Abstract] | |
ACCOUNTS RECEIVABLE | ACCOUNTS RECEIVABLE Accounts receivable at December 31, 2020 and 2019, consisted of the following (amounts in thousands): 2020 2019 Accounts receivable $ 196,796 $ 188,952 Allowance for doubtful accounts (3,782) (3,714) Accounts receivable, net $ 193,014 $ 185,238 Accounts receivable are reduced by an estimated allowance for doubtful accounts which is based on known risks and historical losses. |
INVENTORIES
INVENTORIES | 12 Months Ended |
Dec. 31, 2020 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | INVENTORIES Inventories at December 31, 2020 and 2019, consisted of the following (amounts in thousands): 2020 2019 Raw material $ 78,733 $ 83,569 Work-in-process 36,485 48,369 Finished goods 178,461 201,418 $ 293,679 $ 333,356 |
PREPAID AND OTHER CURRENT ASSET
PREPAID AND OTHER CURRENT ASSETS | 12 Months Ended |
Dec. 31, 2020 | |
Prepaid Expense and Other Assets, Current [Abstract] | |
PREPAID AND OTHER CURRENT ASSETS | PREPAID AND OTHER CURRENT ASSETS Prepaid and other current assets at December 31, 2020 and 2019, consisted of the following (amounts in thousands): 2020 2019 Factory supplies $ 24,006 $ 27,742 Value added tax 9,579 11,755 Prepaid expense 11,930 10,357 Contract receivable 528 2,753 Prepaid insurance 1,411 1,843 Deposits 651 578 Prepaid taxes 2,403 1,951 Duty receivable 1,545 1,545 Other 2,422 342 $ 54,475 $ 58,869 |
PROPERTY, PLANT AND EQUIPMENT,
PROPERTY, PLANT AND EQUIPMENT, NET | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT | PROPERTY, PLANT, AND EQUIPMENT Property, plant, and equipment at December 31, 2020 and 2019, consisted of the following (amounts in thousands): 2020 2019 Land and improvements $ 43,943 $ 44,386 Buildings and improvements 245,619 249,168 Machinery and equipment 583,847 605,205 Tools, dies, and molds 111,189 113,603 Construction-in-process 11,282 16,237 995,880 1,028,599 Less accumulated depreciation (676,026) (661,004) $ 319,854 $ 367,595 Depreciation, including depreciation on capital leases, related to property, plant, and equipment for the years 2020, 2019 and 2018 totaled $51.3 million, $50.9 million, and $53.9 million, respectively. The Company recorded a $13.8 million asset impairment charge during the year ended December 31, 2020 related to certain machinery and equipment located at Titan Tire Reclamation Corporation (TTRC) in Canada as a result of market declines, which indicated the remaining book value of the equipment is more than the fair market value. During 2020, the Company took steps towards the finalization of the closure of its wheel operations in Saltville, Virginia, with plans for completion by the first half of 2021. As a part of this process, the Company expects to incur disposal costs related to the closure but an estimated amount or range of amounts has not yet been determined. There are approximately $0.5 million of net property, plant and equipment at this location. |
OTHER ASSETS
OTHER ASSETS | 12 Months Ended |
Dec. 31, 2020 | |
Other Assets, Noncurrent Disclosure [Abstract] | |
OTHER ASSETS | OTHER LONG-TERM ASSETS Other long-term assets at December 31, 2020 and 2019, consisted of the following (amounts in thousands): 2020 2019 Prepaid software $ 10,792 $ 10,809 Other equity investments 5,601 4,973 Amortizable intangibles 1,975 9,766 Manufacturing spares 1,964 2,456 Deferred financing costs 141 264 Investment in Wheels India Limited — 33,982 Notes receivable — 2,000 Other 6,011 4,752 $ 26,484 $ 69,002 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2020 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
Intangible Assets | INTANGIBLE ASSETS The components of intangible assets for each of the years ended December 31, 2020 and 2019, were as follows (amounts in thousands): Weighted- Average Useful Lives (in Years) 2020 2019 Amortizable intangible assets: Customer relationships 0 $ — $ 12,629 Patents, trademarks, and other 10.43 10,181 11,598 Total at cost 10,181 24,227 Less accumulated amortization (8,206) (14,461) $ 1,975 $ 9,766 During the fourth quarter of 2020, the Company recorded an impairment charge of $6.0 million related to the customer relationships intangible asset in Australia as a result of attrition of several customers since the business was initially acquired in 2012. Amortization related to intangible assets for the years 2020, 2019, and 2018 totaled $2.3 million, $2.2 million, and $2.3 million, respectively. The estimated aggregate amortization expense at December 31, 2020, for each of the years (or other periods) set forth below was as follows (amounts in thousands): 2021 $ 472 2022 144 2023 144 2024 139 2025 123 Thereafter 953 $ 1,975 |
OTHER CURRENT LIABILITIES
OTHER CURRENT LIABILITIES | 12 Months Ended |
Dec. 31, 2020 | |
Other Liabilities, Current [Abstract] | |
OTHER CURRENT LIABILITIES | OTHER CURRENT LIABILITIES Other current liabilities at December 31, 2020 and 2019, consisted of the following (amounts in thousands): 2020 2019 Wages and benefits $ 34,654 $ 24,979 Warranty 15,040 14,334 Insurance 11,964 12,358 Accrued other taxes 10,071 4,912 Incentive compensation 9,449 6,878 Settlement of legal matter (see footnote 25) 9,327 — Operating lease liability 7,533 6,729 Customer rebates 6,299 5,812 Foreign government grant (1) 4,799 1,217 Accrued interest 2,338 2,374 Customer deposits 1,945 6,396 Other 17,963 21,264 $ 131,382 $ 107,253 (1) The amount relates foreign government grant programs related to certain capital development projects in Italy and Spain. The grants were recorded as deferred income which will be amortized over the life of the capital development projects. |
WARRANTY
WARRANTY | 12 Months Ended |
Dec. 31, 2020 | |
Product Warranties Disclosures [Abstract] | |
WARRANTY COSTS | WARRANTY Changes in the warranty liability for the periods set forth below consisted of the following (amounts in thousands): 2020 2019 Warranty liability, January 1 $ 14,334 $ 16,328 Provision for warranty liabilities 6,853 4,965 Warranty payments made (6,147) (6,959) Warranty liability, December 31 $ 15,040 $ 14,334 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 years, with certain product warranties being prorated after the first year. The Company calculates a provision for warranty expense based on past warranty experience. Warranty accruals are included as a component of other current liabilities on the Consolidated Balance Sheets. |
OTHER LONG-TERM LIABILITIES
OTHER LONG-TERM LIABILITIES | 12 Months Ended |
Dec. 31, 2020 | |
Other Liabilities, Noncurrent [Abstract] | |
OTHER LONG-TERM LIABILITIES | OTHER LONG-TERM LIABILITIES Other long-term liabilities at December 31, 2020 and 2019, consisted of the following (amounts in thousands): 2020 2019 Accrued pension liabilities $ 24,326 $ 31,080 Operating lease liability 17,137 17,360 Foreign government grant (1) 10,279 8,227 Contingencies 2,694 6,500 Income tax liabilities 804 4,503 Other 8,189 10,355 $ 63,429 $ 78,025 (1) The amount relates foreign government grant programs related to certain capital development projects in Italy and Spain. The grants were recorded as deferred income which will be amortized over the life of the capital development projects. |
REVOLVING CREDIT FACILITY AND L
REVOLVING CREDIT FACILITY AND LONG-TERM DEBT | 12 Months Ended |
Dec. 31, 2020 | |
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): December 31, 2020 Principal Balance Unamortized Debt Issuance Net Carrying Amount 6.50% senior secured notes due 2023 $ 400,000 $ (3,124) $ 396,876 Titan Europe credit facilities 49,583 — 49,583 Other debt 18,244 — 18,244 Total debt 467,827 (3,124) 464,703 Less amounts due within one year 31,119 — 31,119 Total long-term debt $ 436,708 $ (3,124) $ 433,584 December 31, 2019 Principal Balance Unamortized Debt Issuance Net Carrying Amount 6.50% senior secured notes due 2023 $ 400,000 $ (4,040) $ 395,960 Titan Europe credit facilities 43,591 — 43,591 Revolving credit facility 36,000 — 36,000 Other debt 24,171 — 24,171 Total debt 503,762 (4,040) 499,722 Less amounts due within one year 61,253 — 61,253 Total long-term debt $ 442,509 $ (4,040) $ 438,469 The weighted-average interest rates on total short-term borrowings, excluding current maturities of long-term debt, at December 31, 2020 and December 31, 2019, were approximately 6.5% for both periods. Aggregate maturities of long-term debt at December 31, 2020, for each of the years (or other periods) set forth below were as follows (amounts in thousands): 2021 $ 31,119 2022 12,378 2023 410,257 2024 6,287 2025 2,684 Thereafter 5,102 $ 467,827 6.50% senior secured notes due 2023 The Company’s 6.50% senior secured notes (senior secured notes due 2023) were issued on November 20, 2017, and are due November 2023. Including the impact of debt issuance costs, these notes had an effective yield of 6.79% at issuance. 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. Titan Europe credit facilities The Titan Europe credit facilities included borrowings from various institutions totaling $49.6 million in aggregate principal amount at December 31, 2020. Maturity dates on this debt range from less than one year to five years. The Titan Europe facilities are primarily secured by the assets of Titan's subsidiaries in Italy, Spain, Germany, and Brazil. Revolving credit facility The Company has a $125 million revolving credit facility (credit facility) with agent BMO Harris Bank N.A. and other financial institutions party thereto. The credit facility is collateralized by accounts receivable and inventory of certain of the Company’s domestic subsidiaries and is scheduled to mature in February 2022. See Note 32 for additional information related to the amendment to this credit facility. From time to time Titan's availability under this credit facility may be less than $125 million as a result of outstanding letters of credit and eligible accounts receivable and inventory balances at certain of its domestic subsidiaries. At December 31, 2020, there were no borrowings under the credit facility, an $19.7 million letter of credit and the amount available under the facility totaled $50.9 million based on eligible accounts receivable and inventory balances. Other Debt |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE FINANCIAL INSTRUMENTS | 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. For the year ended December 31, 2020, the Company recorded derivative loss of $0.4 million related to certain derivative contracts entered into during the year. The Company has designated these financial instruments as hedging instruments. Any gain or loss on the re-measurement of the fair value is included within the Consolidated Statements of Comprehensive Income. For the year ended December 31, 2019, the Company recorded currency exchange gain of $0.9 million related to these derivatives. 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. |
REDEEMABLE NONCONTROLLING INTER
REDEEMABLE NONCONTROLLING INTEREST (Notes) | 12 Months Ended |
Dec. 31, 2020 | |
Noncontrolling Interest [Abstract] | |
Noncontrolling Interest Disclosure [Text Block] | REDEEMABLE NONCONTROLLING INTERESTThe Company, in partnership with One Equity Partners (OEP) and the Russian Direct Investment Fund (RDIF), owned 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 (Shareholders' Agreement) which was entered into in connection with the acquisition of Voltyre-Prom. The agreement contains a settlement put option which was exercisable during a six-month period beginning July 9, 2018. The settlement put option required Titan to purchase the equity interests from OEP and RDIF in Voltyre-Prom with cash or Titan common stock, at a value set by the agreement. The value set by the agreement was the greater of: the aggregate of the investment of the selling party and an amount representing an internal rate of return of 8%, or the last twelve months of EBITDA multiplied by 5.5 less net debt times the selling party's ownership percentage. On November 14, 2018, the Company received notification of exercise of the put option from RDIF. On February 11, 2019, the Company entered into a definitive agreement (the "Agreement") with an affiliate of RDIF relating to the put option that was exercised by RDIF. The transactions contemplated by the Agreement closed on February 22, 2019. Under the terms of the Agreement, in full satisfaction of the settlement put option that was exercised by RDIF, Titan paid to RDIF $25 million in cash at the closing of the transaction, and agreed, subject to the completion of regulatory approval, to issue to RDIF in a private placement 4,032,259 restricted shares of Titan common stock. Due to pending regulatory approval, the issuance of the restricted shares of Titan common stock pursuant to the Agreement was not completed as of December 31, 2019. Immediately following the closing, RDIF continued to own the same interest in Voltyre-Prom, subject to the terms of the Agreement and the Shareholders’ Agreement. Titan has retained the right to buy back the Titan shares from RDIF for $25 million until February 12, 2022, the three-year anniversary of the signing of the Agreement, and, if the stock buyback is consummated within the first year of the closing under the Agreement at the time of such buyback, RDIF would be required to convey to Titan, based on current ownership, a 10.71% interest in Voltyre-Prom, resulting in RDIF reducing its interest in Voltyre-Prom from 35.7% to 25%. On January 8, 2019, the Company received notification of exercise of the put option from OEP. During the second quarter of 2019, the Company made a payment to OEP in the amount of $16.0 million representing the majority of the interest on the amount due to OEP with respect to the put option. On July 30, 2019, Titan Luxembourg S.à r.l. (the “Titan Purchaser”), a subsidiary of the Company, entered into a sale purchase agreement (the “OEP Agreement”) with subsidiaries of OEP, relating to the settlement put option under the Shareholders’ Agreement that was exercised by OEP. Pursuant to the terms of the OEP Agreement, on July 31, 2019, the Titan Purchaser paid to OEP $30.7 million in cash, which, together with the Titan Purchaser’s prior payment to OEP of $16.0 million during the second quarter of 2019, were made in full satisfaction of the settlement put option exercised by OEP under the Shareholders’ Agreement. Immediately following the closing, OEP ceased to have any ownership interests in, and the Titan Purchaser and RDIF owned 64.3% and 35.7%, respectively, of, Voltyre-Prom. The following is a reconciliation of redeemable noncontrolling interest as of December 31, 2019 (amounts in thousands): Balance at January 1, 2019 $ 119,813 Reclassification as a result of Agreement regarding put option (49,883) Payment of redeemable noncontrolling interest (46,722) Loss attributable to redeemable noncontrolling interest (819) Currency translation 683 Redemption value adjustment 1,928 Balance at December 31, 2019 $ 25,000 As of December 31, 2020, the value of the redeemable noncontrolling interest held by RDIF remained at $25 million, the value of the shares of restricted stock to be issued pursuant to the terms of the Agreement. This obligation represents the value of the restricted shares of Titan common stock due to RDIF on December 31, 2020, and is presented in the Condensed Consolidated Balance Sheet in redeemable noncontrolling interest, which is treated as mezzanine equity. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 12 Months Ended |
Dec. 31, 2020 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | ACCUMULATED OTHER COMPREHENSIVE LOSS Accumulated other comprehensive loss consisted of the following at the dates set forth below (amounts in thousands): Currency Loss on Derivatives Unrecognized Total Balance at January 1, 2019 $ (175,794) $ — $ (27,777) $ (203,571) Currency translation adjustments (10,510) — (10,510) Defined benefit pension plan entries: Amortization of unrecognized losses and prior service cost, net of tax of $133 — 6,566 6,566 Reclassification as result of ownership change (6,203) — (6,203) Reclassification from AOCI to retained earnings - adoption of ASU 2018-02 — (4,933) (4,933) Balance at December 31, 2019 (192,507) — (26,144) (218,651) Currency translation adjustments (1,644) — (1,644) Defined benefit pension plan entries: Amortization of unrecognized losses and prior service cost, net of tax of $43 — 3,454 3,454 Derivative loss — (413) — (413) Balance at December 31, 2020 $ (194,151) $ (413) $ (22,690) $ (217,254) |
STOCKHOLDERS EQUITY
STOCKHOLDERS EQUITY | 12 Months Ended |
Dec. 31, 2020 | |
Stockholders' Equity Attributable to Parent [Abstract] | |
STOCKHOLDERS’ EQUITY | STOCKHOLDERS’ EQUITYThe Company did not repurchase any shares of Titan common stock in 2020, 2019, or 2018. The Company records treasury stock using the cost method. On June 11, 2020, the Board of Directors unanimously approved the suspension of the Company’s quarterly common stock dividend until further notice. Titan paid aggregate cash dividends of $.005 per share of common stock for the first quarter of 2020 and then the Company's quarterly stock dividend was suspended for the remainder of 2020. Titan paid $.02 per share in 2019 and 2018. Dividends declared totaled $0.3 million for 2020 and $1.2 million for 2019 and 2018. |
VARIABLE INTEREST ENTITIES (Not
VARIABLE INTEREST ENTITIES (Notes) | 12 Months Ended |
Dec. 31, 2020 | |
Variable Interest Entity, Nonconsolidated, Comparison of Carrying Amount of Assets and Liabilities to Maximum Loss Exposure [Abstract] | |
Variable Interest Entity Disclosure [Text Block] | VARIABLE INTEREST ENTITIES The Company holds a variable interest in two joint ventures for which the Company is the primary beneficiary. Both of the joint ventures operate distribution facilities that primarily distribute mining products. Titan is the 50% owner of one of these distribution facilities, which is located in Canada, and the 40% owner of the other such facility, which is located in Australia. The Company’s variable interests in these two joint ventures relate to sales of Titan product to these entities, consigned inventory, and working capital loans. Titan also is party to a joint venture that is the consortium that owns Voltyre-Prom, of which Titan originally was a 43% owner. On July 31, 2019, Titan purchased additional shares resulting in Titan having a 64.3% ownership in the consortium and the joint venture became a majority owned entity and is no longer a variable interest entity. See Note 13 for additional information. The Company also held a variable interest in two other entities for which Titan was the primary beneficiary. Each of these entities provided specific manufacturing related services at the Company's Tennessee facility. Titan's variable interest in these entities relates to financial support to the entities through providing many of the assets used by these entities in their business. The Company owns no equity in these entities. In March 2020, the Company delivered a notice of termination of the supply agreement with these entities and the Company no longer holds a variable interest in them. As the primary beneficiary of these variable interest entities (VIEs), the VIEs’ assets, liabilities, and results of operations are included in the Company’s consolidated financial statements as of, and for the year ended, December 31, 2020. The other equity holders’ interests are reflected in “Net loss attributable to noncontrolling interests” in the Consolidated Statements of Operations and “Noncontrolling interests” in the Consolidated Balance Sheets. The following table summarizes the carrying amount of the VIEs’ assets and liabilities included in the Company’s Consolidated Balance Sheets at December 31, 2020 and 2019 (amounts in thousands): 2020 2019 Cash and cash equivalents $ 1,431 $ 2,190 Inventory 971 1,070 Other current assets 2,156 1,027 Property, plant, and equipment, net 1,253 1,327 Other noncurrent assets — — Total assets $ 5,811 $ 5,614 Current liabilities 557 1,110 Noncurrent liabilities 1,899 579 Total liabilities $ 2,456 $ 1,689 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 non-recourse 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 were as follows at December 31, 2020 and 2019 (amounts in thousands): 2020 2019 Investments $ 5,623 $ 4,973 Other current assets — — Total VIE assets 5,623 4,973 Accounts payable 3,377 2,006 Maximum exposure to loss $ 9,000 $ 6,979 |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS ASC 820 Fair Value Measurements establishes 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. Fair value, nonrecurring, Level 2 and 3 measurements from impairments consisted of the following (amounts in thousands): Fair Value Level 2 Level 3 Impairment Charges December 31, 2020 2020 Property, plant and equipment $ 1,874 $ — $ 13,793 Customer relationship — — 6,023 Total $ 1,874 $ — $ 19,816 Inventory impairment (1) 1,007 Total $ 20,823 (1) As part of the closure of the Saltville, Virginia wheel operations, the Company recorded an inventory impairment charge of $1.0 million for the year ended December 31, 2020. The fair value measurements and impairment charges shown above for property, plant and equipment pertain to certain machinery and equipment located at Titan Tire Reclamation Corporation (TTRC) in Canada as a result of market declines. See Note 19 for additional information for the impairment of the property, plant and equipment for TTRC and impairment of the customer relationships intangible asset. |
Restructuring, Impairment, and Other Activities Disclosure | RESTRUCTURING ACTIVITIES As part of the North American and Corporate Restructuring plan, which was approved in the second quarter of 2020, certain positions have been eliminated to continue ongoing operational improvement initiatives designed to prioritize resource allocation, reduce costs and drive profitability for the Company on a global basis. The Company incurred $1.7 million during the year ended December 31, 2020, respectively, for severance costs related to the rationalization of certain Corporate and European positions. The Company paid the severance amounts during the third and fourth quarters of 2020. The severance costs are primarily recorded in cost of sales line item in the Consolidated Statement of Operations. As part of the closure of the Saltville, Virginia wheel operations, the Company recorded an inventory impairment charge of $1.0 million for the year ended December 31, 2020. The Company expects the closure of Saltville, Virginia wheel operations to be completed by the first half of 2021. The inventory impairment charge is included in cost of sales in the Consolidated Statement of Operations. |
ASSET IMPAIRMENT (Notes)
ASSET IMPAIRMENT (Notes) | 12 Months Ended |
Dec. 31, 2020 | |
Asset Impairment Charges [Abstract] | |
Asset Impairment Charges [Text Block] | ASSET IMPAIRMENT On September 21, 2017, a fire occurred at a facility of Titan Tire Reclamation Corporation (TTRC), a subsidiary of the Company, located in Fort McMurray, AB. The TTRC facility contains six thermal vacuum recovery (TVR) units, which are large, contained capsules used to recycle large mining tires. The fire started within one of the TVR units and was contained to a building housing three of the TVR units. As a result of the damage caused by the fire, Titan recorded an asset impairment of $9.9 million. Titan carries both casualty and property insurance for its facilities and equipment, as well as business interruption insurance. The asset impairment amount was partially offset by an initial insurance advance received in the amount of $1.6 million. The Company received additional insurance proceeds during 2020 totaling $8.6 million which is recorded in other income line item within the Consolidated Statements of Operations. See Note 21 for further detail. The Company recorded a $13.8 million asset impairment charge during the year ended December 31, 2020 related to certain machinery and equipment located at TTRC as a result of market declines, which indicated the remaining book value of the equipment is more than the fair market value. The TTRC asset impairment charge is recorded in cost of sales line item in the Consolidated Statement of Operations. During the fourth quarter of 2020, the Company recorded an impairment charge of $6.0 million related to the customer relationships intangible asset in Australia as a result of attrition of several customers since the business was initially acquired in 2012. This impairment charge is recorded in the selling, general and administrative expenses line item in the Consolidated Statement of Operations. |
ROYALTY EXPENSE
ROYALTY EXPENSE | 12 Months Ended |
Dec. 31, 2020 | |
Other Income and Expenses [Abstract] | |
ROYALTY EXPENSE | ROYALTY EXPENSEThe 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. Each of these agreements is scheduled to expire in 2025. Royalty expenses recorded for the years ended December 31, 2020, 2019, and 2018, were $9.7 million, $9.9 million, and $10.1 million, respectively. |
OTHER INCOME
OTHER INCOME | 12 Months Ended |
Dec. 31, 2020 | |
Other Income and Expenses [Abstract] | |
OTHER INCOME, NET | OTHER INCOME Other income consisted of the following for the years set forth below (amounts in thousands): 2020 2019 2018 Gain on property insurance settlement (1) $ 8,600 $ — $ — Gain on sale of Brownsville, Texas facility 4,855 — — Building rental income 2,336 1,697 1,804 Equity investment income 720 2,394 3,993 Gain on sale of assets 440 871 428 Investment gain related to investments for deferred compensation — — 687 (Loss) gain on sale of Wheels India Limited shares (703) 4,695 — Other (expense) income 2,551 (1,264) 10,179 $ 18,799 $ 8,393 $ 17,091 (1) The gain on property insurance settlement relates to the receipt of insurance proceeds for the year ended December 31, 2020 for a 2017 fire that occurred at a facility of TTRC, a subsidiary of the Company, located in Fort McMurray in Alberta, Canada. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES (Loss) income before income taxes, consisted of the following for the years set forth below (amounts in thousands): 2020 2019 2018 Domestic $ (36,761) $ (52,234) $ (298) Foreign (21,370) 4,190 20,105 $ (58,131) $ (48,044) $ 19,807 The income tax provision was as follows for the years set forth below (amounts in thousands): 2020 2019 2018 Current Federal $ (4,050) $ (4,599) $ (2,379) State 326 622 (65) Foreign 13,677 9,752 11,497 9,953 5,775 9,053 Deferred Federal — — — State — — — Foreign (3,007) (2,300) (2,291) (3,007) (2,300) (2,291) Income tax provision $ 6,946 $ 3,475 $ 6,762 The income tax provision differs from the amount of income tax determined by applying the statutory U.S. federal income tax rate to pre-tax (loss) income as a result of the following: 2020 2019 2018 Statutory U.S. federal tax rate 21.0 % 21.0 % 21.0 % Unrecognized tax positions 5.9 6.1 (12.4) Impact of foreign income (8.2) (2.2) (8.8) Valuation allowance (38.4) (29.0) (0.2) State taxes, net (0.7) (0.9) 0.3 Nondeductible royalty (1.2) (1.5) 3.8 Tax Cuts and Jobs Act — — 26.6 Sale of investment 8.7 — — Other, net 1.0 (0.7) 3.8 Effective tax rate (11.9) % (7.2) % 34.1 % The effective tax rate for the year ended December 31, 2020, was (11.9)% compared to (7.2)% for the year ended December 31, 2019. For 2020 and 2019, the Company recorded a pre-tax loss and had a negative effective tax rate which represents tax expense in the consolidated financial statements. In jurisdictions where the Company operates its businesses, management analyzes the ability to utilize its deferred tax assets arising from losses in its cyclical business. The Company continues to record a valuation allowance in several jurisdictions, including the U.S., various U.S. states, Italy, Australia, and Luxembourg as these amounts remain more likely than not that the deferred tax assets would not be utilized. The Company recorded a valuation allowance of $22.3 million and $13.9 million on the net deferred tax asset in 2020 and 2019, respectively. This amount is primarily related to net operating losses generated from operations in these certain countries. The Company is involved in various tax matters, for some of which the outcome is uncertain. The Company believes that it has adequate tax reserves to address open tax matters acknowledging that the outcome and timing of these events are uncertain. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s deferred tax assets and liabilities at December 31, 2020 and 2019, were as follows (amounts in thousands): 2020 2019 Deferred tax assets: Net operating loss carryforwards $ 151,597 $ 129,599 Pension 3,904 5,026 Inventory 6,758 6,673 Warranty 5,648 4,004 Employee benefits and related costs 9,819 8,255 Prepaid royalties 3,755 4,092 Interest limitation 16,067 11,067 Lease liability 7,734 7,164 Other 19,633 17,847 Deferred tax assets 224,915 193,727 Deferred tax liabilities: Fixed assets (15,603) (21,846) Intangible assets (1,012) (3,136) Lease assets (7,759) (7,047) Other (2,669) (1,359) Deferred tax liabilities (27,043) (33,388) Subtotal 197,872 160,339 Valuation allowance (199,176) (164,680) Net deferred tax liability $ (1,304) $ (4,341) As of December 31, 2020 and 2019, certain tax loss carryforwards of $151.6 million and $129.6 million were available with $3.3 million expiring between 2020 and 2025 and $148.3 million expiring after 2025. At December 31, 2020, a valuation allowance of $199.2 million has been established. The net change in the valuation allowance was $34.5 million and $13.1 million for 2020 and 2019, respectively. The majority of the valuation allowance is related to deferred tax assets in the U.S., Italy, Australia, and Luxembourg. The Company has $193.2 million of Federal net operating loss carryforward, a portion of which expires starting in 2034. Additionally, the Company has $299.1 million of state net operating losses and $378.1 million of foreign loss carryforwards. The Tax Cuts and Jobs Act was enacted on December 22, 2017. The Tax Cuts and Jobs Act included a number of changes in existing tax law impacting businesses, including a one-time deemed repatriation of cumulative undistributed foreign earnings and a permanent reduction in the U.S. federal statutory rate from 35% to 21%, effective on January 1, 2018. Under U.S. GAAP, changes in tax rates and tax law are accounted for in the period of enactment and deferred tax assets and liabilities are re-measured at the enacted tax rate. The re-measured U.S. net deferred asset was fully offset by a change in the valuation allowance. The Company’s net cumulative undistributed foreign earnings were a cumulative loss and therefore no additional income tax expense related to the one-time deemed repatriation toll charge was recorded in 2017. As a result of the Tax Cuts and Jobs Act, the Company can repatriate future foreign earnings back to the U.S. when needed with minimal additional taxes other than state income and foreign withholding tax. The Company has not changed its indefinite reinvestment assertion in light of the Tax Cuts and Jobs Act and has not accrued any potential incremental taxes which could be incurred if any foreign earnings are repatriated. The Company has not calculated the potential foreign withholding taxes as the Company does not expect to repatriate those earnings. On March 27, 2020, the U.S. government passed the CARES Act (the "CARES Act"), which provides tax relief to assist companies dealing with the effects of COVID-19. The Company does not expect the impact of the CARES Act to be material to the Company’s financial position or results of operations, except for the deferral of Social Security payroll taxes, which will benefit the Company's operating cash flows through the end of calendar year 2020. On December 27, 2020 the Consolidated Appropriations Act of 2021 (“the Appropriations Act”) was signed into law. The Appropriations Act, among other things includes provisions related to the deductibility of PPP expenses paid with PPP loan proceeds, payroll tax credits, modifications to the meals and entertainment deduction, increased limitations on charitable deductions for corporate taxpayers, and enhancements of expiring tax “extender” provisions. The Company has completed its assessment of the impact of the legislation, and there is no significant impact to the consolidated financial statements. The Company or one of its subsidiaries files income tax returns in the U.S., Federal and State, and various foreign jurisdictions. The Company’s major locations are in the U.S., Italy, Australia, Russia, and Brazil. Open tax years for the U.S. are from 2017-2020, for Italy open tax years are from 2015-2020, and for Russia open tax years are from 2017-2020. Australia has open tax years from 2016-2020 and Brazil has open tax years from 2014-2020. The Company has applied the provisions of ASC 740, “Income Taxes” related to unrecognized tax benefits. At December 31, 2020, 2019, and 2018, the unrecognized tax benefits were $0.8 million, $4.5 million, and $8.9 million, respectively. As of December 31, 2020, $0.8 million of unrecognized tax benefits would have affected income tax expense if the tax benefits were recognized. The majority of the accrual in unrecognized tax benefits relates to potential state tax exposures. Although management cannot predict with any degree of certainty the timing of ultimate resolution of matters under review by various taxing jurisdictions, it is possible that the Company’s gross unrecognized tax benefits balance will decrease by approximately $0.6 million within the next twelve months. A reconciliation of the total amounts of unrecognized tax benefits at December 31 were as follows (amounts in thousands): 2020 2019 2018 Balance at January 1 $ 4,097 $ 7,406 $ 9,365 Increases to tax positions taken during the current year — — 19 Increases to tax positions taken during the prior years 13 973 — Decreases to tax positions taken during prior years — (350) (1,336) Decreases due to lapse of statutes of limitations (3,099) (3,429) (637) Settlements — (506) — Foreign exchange 1 3 (5) Balance at December 31 $ 1,012 $ 4,097 $ 7,406 The Company accrues interest and penalties related to unrecognized tax benefits in income tax expense. The amount of interest and penalties related to unrecognized tax benefits recorded in income tax expense was $(1.1) million, $(1.0) million, and $(0.5) million at December 31, 2020, 2019 and 2018. The reconciliation of unrecognized tax benefits above does not include accrued interest and penalties of $0.3 million, $1.4 million, and $2.4 million, at December 31, 2020, 2019, and 2018, respectively. |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 12 Months Ended |
Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |
EMPLOYEE BENEFIT PLANS | EMPLOYEE BENEFIT PLANS Pension 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’s policy is to fund pension costs as required by law, which is consistent with the funding requirements of federal laws and regulations. Certain foreign subsidiaries maintain unfunded pension plans consistent with local practices and requirements. The Company’s recorded liability for pensions is based on a number of assumptions, including discount rates, rates of return on investments, mortality rates, and other factors. Certain of these assumptions are determined by the Company with the assistance of outside actuaries. Assumptions are based on past experience and anticipated future trends. These assumptions are reviewed on a regular basis and revised when appropriate. In 2020, the Company changed the assumptions related to the mortality projection scale to better reflect anticipated plan experience and adjusted the discount rate to reflect market conditions as of the measurement date. The following table provides the change in benefit obligation, change in plan assets, funded status, and amounts recognized in the Consolidated Balance Sheet of the defined benefit pension plans as of December 31, 2020 and 2019 (amounts in thousands): Change in benefit obligation: 2020 2019 Benefit obligation at beginning of year $ 113,559 $ 108,513 Plan amendments — (1,087) Service cost 801 765 Interest cost 3,496 4,385 Actuarial assumption changes 5,589 — Actuarial loss 1,237 9,114 Benefits paid (8,634) (8,516) Foreign currency translation (1,108) 385 Benefit obligation at end of year $ 114,940 $ 113,559 Change in plan assets: Fair value of plan assets at beginning of year $ 81,375 $ 72,496 Actual return on plan assets 12,749 15,446 Employer contributions 3,433 1,943 Benefits paid (7,740) (8,516) Foreign currency translation (73) 6 Fair value of plan assets at end of year $ 89,744 $ 81,375 Unfunded status at end of year $ (25,196) $ (32,184) Amounts recognized in Consolidated Balance Sheet: Noncurrent assets $ 1,740 $ 1,016 Current liabilities (1,529) (2,120) Noncurrent liabilities (25,407) (31,080) Net amount recognized in the Consolidated Balance Sheet $ (25,196) $ (32,184) The change in the benefit obligation was mainly driven by the benefits paid from the plans and negative impact of foreign currency translation due to unfavorable exchange rates offset by actuarial losses and interest costs positively impacting the benefit obligation. The change in the benefit obligation was favorably impacted by the actuarial assumption changes primarily related to discount rate and mortality projection scale table to better reflect the market conditions and anticipated plan experience. The pension benefit obligation included $96.8 million of pension benefit obligation for the three frozen plans in the U.S. and $18.1 million of pension benefit obligation for plans at foreign subsidiaries. The fair value of plan assets included $88.4 million of plan assets for the three frozen plans in the U.S. and $1.3 million of plan assets for foreign plans. Amounts recognized in accumulated other comprehensive loss: 2020 2019 Unrecognized prior service cost $ 779 $ 1,087 Unrecognized net loss (33,877) (38,183) Deferred tax effect of unrecognized items 11,181 10,952 Net amount recognized in accumulated other comprehensive loss $ (21,917) $ (26,144) The weighted-average assumptions used in the actuarial computation that derived the benefit obligations at December 31 were as follows: 2020 2019 Discount rate 2.5 % 3.2 % Expected long-term return on plan assets 7.0 % 6.9 % The following table provides the components of net periodic pension cost for the plans, settlement cost, and the assumptions used in the measurement of the Company’s benefit obligation for the years ended December 31, 2020, 2019, and 2018 (amounts in thousands): Components of net periodic benefit cost and other Net periodic benefit cost: 2020 2019 2018 Service cost $ 801 $ 765 $ 626 Interest cost 3,496 4,385 4,330 Assumed return on assets (5,463) (4,737) (5,959) Amortization of unrecognized prior service cost (69) 49 137 Amortization of net unrecognized loss 2,840 3,238 2,784 Net periodic pension cost $ 1,605 $ 3,700 $ 1,918 Service cost is recorded as cost of sales in the Consolidated Statement of Operations while all other components are recorded in other income. The weighted-average assumptions used in the actuarial computation that derived net periodic pension cost for the years ended December 31, 2020, 2019, and 2018 were as follows: 2020 2019 2018 Discount rate 3.6 % 5.0 % 5.3 % Expected long-term return on plan assets 6.9 % 6.9 % 7.4 % The allocation of the fair value of plan assets was as follows: Percentage of Plan Assets Target Asset Category 2020 2019 2020 U.S. equities (a) 61 % 62 % 40% - 80% Fixed income 20 % 22 % 20% - 50% Cash and cash equivalents 10 % 7 % 0% - 20% International equities (a) 7 % 7 % 0% - 16% REITs 2 % 2 % 100 % 100 % (a) Total equities may not exceed 80% of total plan assets. The majority of the Company's foreign plans do not have plan assets. The foreign plans which have plan assets holds these plan assets in an insurance or money market fund. The fair value of the plan assets by asset categories consisted of the following as of the dates set forth below (amounts in thousands): Fair Value Measurements as of December 31, 2020 Total Level 1 Level 2 Level 3 Money market funds $ 8,916 $ 8,916 $ — $ — Common stock 35,951 35,951 — — Bonds and securities 3,638 3,638 — — Mutual and insurance funds 41,239 40,410 829 — Totals $ 89,744 $ 88,915 $ 829 $ — Assets measured at net asset value (a) — $ 89,744 Fair Value Measurements as of December 31, 2019 Total Level 1 Level 2 Level 3 Money market funds $ 5,453 $ 5,453 $ — $ — Common stock 33,675 33,675 — — Bonds and securities 4,592 4,592 — — Mutual and insurance funds 37,655 36,656 999 — Totals $ 81,375 $ 80,376 $ 999 $ — Assets measured at net asset value (a) — $ 81,375 (a) Assets measured at net asset value consist of common / collective trusts. The Company invests in a diversified portfolio consisting of an array of asset classes in an attempt to maximize returns while minimizing risk. These asset classes include U.S. equities, fixed income, cash and cash equivalents, international equities and REITs. The investment objectives are to provide for the growth and preservation of plan assets on a long-term basis through investments in: investment grade securities that provide investment returns that meet or exceed the Standard & Poor’s 500 Index and investment grade fixed income securities that provide investment returns that meet or exceed the Barclays Capital Aggregate Bond Index. The U.S. equities asset category included the Company’s common stock in the amount of $0.8 million (approximately one of total plan assets) at December 31, 2020, and $0.6 million (approximately one of total plan assets) at December 31, 2019. The fair value of money market funds, stock, bonds, U.S. government securities and mutual funds is determined based on valuation for identical instruments in active markets. The long-term rate of return for plan assets is determined using a weighted-average of long-term historical approximate returns on cash and cash equivalents, fixed income securities, and equity securities considering the anticipated investment allocation within the plans. The expected return on plan assets is anticipated to be 7.0% over the long-term. This rate assumes long-term historical returns of approximately 8.5% for equities and approximately 4.0% for fixed income securities using the plans’ target allocation percentages. Professional investment firms, none of which are Titan employees, manage the plan assets. Although the 2021 minimum pension funding calculations are not finalized, the Company estimates those funding requirements will be approximately $3.2 million. Projected benefit payments from the plans as of December 31, 2020, are estimated as follows (amounts in thousands): 2021 $ 9,180 2022 8,088 2023 8,032 2024 7,889 2025 7,669 2026-2030 35,111 401(k)/Defined contribution plans The Company sponsors two 401(k) retirement savings plans in the U.S. and a number of defined contribution plans at foreign subsidiaries. One U.S. plan is for the benefit of substantially all employees who are not covered by a collective bargaining arrangement. Titan provides a 50% matching contribution in the form of the Company’s common stock on the first 6% of the employee’s contribution in this plan. The Company issued 653,211 shares, 266,121 shares and 54,517 shares of treasury stock in connection with this 401(k) plan during 2020, 2019, and 2018, respectively. Expenses to the Company related to this common stock matching contribution were $1.2 million, $1.2 million, and $0.6 million for 2020, 2019, and 2018, respectively. The other U.S. 401(k) plan is for employees covered by collective bargaining agreements and does not include a Company matching contribution. Expenses related to foreign defined contribution plans were $3.7 million, $3.9 million, and $4.1 million for 2020, 2019, and 2018, respectively. |
STOCK COMPENSATION
STOCK COMPENSATION | 12 Months Ended |
Dec. 31, 2020 | |
STOCK OPTION PLANS [Abstract] | |
STOCK OPTION PLANS | STOCK COMPENSATION The Company recorded stock compensation of $2.5 million, $1.5 million, and $1.1 million in 2020, 2019, and 2018, respectively. Options to the Board of Directors vest immediately. All options outstanding at December 31, 2020 are scheduled to expire 10 years from the grant date. The restricted stock awards vest over a period of three years. 2005 Equity Incentive Plan The Company adopted the 2005 Equity Incentive Plan to provide stock compensation as a means of attracting and retaining qualified independent directors and employees for the Company. A total of 0.5 million shares are available for future issuance under the equity incentive plan at December 31, 2020. The exercise price of stock options may not be less than the fair market value of the common stock on the date of the grant. The vesting and term of each option is set by the Board of Directors. The Company granted no stock options under this plan in 2020, and 2019, and 80,000 stock options under this plan in 2018. The Company granted 1,026,946 restricted stock awards under this plan in 2020, 355,201 restricted stock awards under this plan in 2019 and 376,500 restricted stock awards under this plan in 2018. Stock Options The following is a summary of activity in stock options during the year ended December 31, 2020: Shares Subject Weighted- Average Weighted- Average Remaining Contractual Life (in Years) Aggregate Intrinsic Value (in thousands) Outstanding, December 31, 2019 861,738 $ 16.79 Granted — — Exercised — — Forfeited/Expired (201,038) 16.21 Outstanding, December 31, 2020 660,700 16.97 3.55 $ — Exercisable, December 31, 2020 660,700 16.97 3.55 $ — Additional Stock Option Information (all amounts in thousands, except for per share data): 2020 2019 2018 Weighted-average fair value per share of stock options granted $ — $ — $ 5.85 Grant date fair value of stock options vested — — 468 No options were exercised in 2020, 2019 and 2018. The Company currently uses treasury shares to satisfy any stock option exercises. At December 31, 2020 and 2019, the Company had 0.1 million and 0.4 million shares of treasury stock, respectively. Valuation Assumptions The Company uses the Black-Scholes option pricing model to determine the fair value of its stock options. The determination of the fair value of stock option awards on the date of grant using option pricing models is affected by the Company’s stock price, as well as assumptions regarding a number of complex and subjective variables. These variables include the Company’s expected stock price volatility over the expected term of the awards, actual and projected stock option exercise behaviors, risk-free interest rates, and expected dividends. The expected term of options represents the period of time over which options are expected to be outstanding and is estimated based on historical experience. Expected volatility is based on the historical volatility of the Company’s common stock calculated over the expected term of the option. The risk-free interest rate is based on U.S. Treasury yields in effect at the date of grant. Weighted average assumptions used for stock options issued in 2020, 2019, and 2018: 2020 2019 2018 Expected life (in years) 0 0 6.0 Expected volatility — % — % 50.7 % Expected dividends — % — % 0.2 % Risk-free interest rate — % — % 2.88 % Restricted Stock Shares Weighted Average Grant Date Fair Value Unvested at December 31, 2019 585,071 $ 5.52 Granted 1,026,946 1.80 Vested (457,640) 4.54 Forfeited/Expired (10,000) 9.16 Unvested at December 31, 2020 1,144,377 2.54 Pre-tax unrecognized compensation expense for unvested restricted stock was $1.7 million at December 31, 2020, and will be recognized as an expense over a weighted-average period of 1.2 years. The fair value of restricted stock vested, based on the stock's fair value on the vesting date, was $1.3 million, $0.6 million, and $0.3 million for the years ended December 31, 2020, 2019, and 2018, respectively. |
LITIGATION
LITIGATION | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
LITIGATION | LITIGATION The Company is a party to routine legal proceedings arising out of the normal course of business. 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. At December 31, 2020, two of Titan’s subsidiaries were involved in litigation concerning environmental laws and regulations. In June 2015, Titan Tire Corporation (Titan Tire) and Dico, Inc. (Dico) appealed an order from the U.S. District Court for the South District of Iowa granting the federal government’s motion for summary judgment that found Dico liable for violating the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (CERCLA) and an Environmental Protection Agency (EPA) Administrative Order and awarded response costs, civil penalties, and punitive damages. In December 2015, the U.S. 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 occurred 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 of additional response costs, for this order in the quarter ended September 30, 2017. Titan Tire and Dico appealed the case to the United States Court of Appeals for the Eighth Circuit. On April 11, 2019, the U.S. Court of Appeals for the Eighth Circuit affirmed the District Court’s September 5, 2017, order. Thereafter, Dico and Titan Tire filed a petition for rehearing with the U.S. Court of Appeals for the Eighth Circuit, which was denied in August 2019. As a result of the current judgment in favor of the United States, and pursuant to Iowa Code § 624.23, a judgment lien exists over Titan Tire’s real property in the State of Iowa. Titan Tire maintains a supersedeas bond in the amount of $6 million relating to the judgment. During the third quarter of 2020, the Company accrued an incremental contingent legal accrual of $5.0 million related to the anticipated settlement of the Dico case. As of December 31, 2020, the $11.5 million contingent liability remained outstanding. Following settlement negotiations with the U.S. federal government and the City of Des Moines, an agreement was reached in September 2020 which has been reduced to a Consent Decree that was executed by all parties on February 1, 2021. The Consent Decree prescribes total cash payments by Titan Tire to the federal government in the amount of $11.5 million, with $9.0 million due and payable within 30 days of the settlement becoming final, $1.5 million (plus interest at a rate of 2.22% per annum) due and payable within one year of the settlement becoming final and $1.0 million (plus interest at a rate of 2.22% per annum) due and payable within two years of the settlement becoming final. The Company made the payment to the federal government of $9.2 million including accrued interest on February 25, 2021 and is accrued within the other current liabilities line item within the Consolidated Balance Sheets as of December 31, 2020. The remaining amounts due are accrued within the other long-term liabilities line item within the Consolidated Balance Sheets. |
LEASE COMMITMENTS
LEASE COMMITMENTS | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
LEASE COMMITMENTS | LEASES The Company leases certain buildings and equipment under both operating and finance leases. Certain lease agreements provide for renewal options, fair value purchase options, and payment of property taxes, maintenance, and insurance by the Company. Under ASC 842, the Company made an accounting policy election, by class of underlying asset, not to separate non-lease components such as those previously stated from lease components and instead will treat the lease agreement as a single lease component for all asset classes. Operating right-of-use (ROU) assets represent the Company's right to use an underlying asset for the lease term and lease liabilities represent Titan's obligations to make lease payments arising from the lease. The majority of Titan's leases are operating leases. Operating lease ROU assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. As most of Titan's leases do not provide an implicit interest rate, the Company used its incremental borrowing rate (6.79%), based on the information available at the lease commencement date, in determining the present value of lease payments. Operating lease expense is recognized on a straight-line basis over the lease term and is included in cost of sales and selling, general and administrative expenses on the Consolidated Statement of Operations. Amortization expense associated with finance leases is included in cost of sales and selling, general and administrative expenses, and interest expense associated with finance leases is included in interest expense in the Consolidated Statement of Operations. Short-term operating leases, which have an initial term of twelve months or less, are not recorded on the balance sheet. Supplemental balance sheet information related to leases was as follows (amounts in thousands): Balance Sheet Classification 2020 Operating lease ROU assets Operating lease assets $ 24,356 Operating lease current liabilities Other current liabilities $ 7,533 Operating lease long-term liabilities Other long-term liabilities 17,137 Total operating lease liabilities $ 24,670 Finance lease, gross Property, plant & equipment, net $ 6,785 Finance lease accumulated depreciation Property, plant & equipment, net (3,279) Finance lease, net $ 3,506 Finance lease current liabilities Other current liabilities $ 608 Finance lease long-term liabilities Other long-term liabilities 2,072 Total finance lease liabilities $ 2,680 At December 31, 2020, maturity of lease liabilities were as follows (amounts in thousands): Operating Leases Finance Leases 2021 $ 9,241 $ 1,051 2022 7,174 1,000 2023 4,796 739 2024 2,494 307 2025 1,266 103 Thereafter 3,186 39 Total future minimum lease payments $ 28,157 $ 3,239 Less imputed interest 3,487 559 $ 24,670 $ 2,680 Weighted average remaining lease term (in years) 4.22 3.36 Supplemental cash flow information related to leases for year ended December 31, 2020 were as follows: operating cash flows from operating leases were $8.7 million and operating cash flows from finance leases were $0.3 million. |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Notes) | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | PURCHASE OBLIGATIONS At December 31, 2020, the Company's expected cash outflow resulting from non-cancellable purchase obligations are summarized by year in the table below (amounts in thousands): 2021 $ 13,504 2022 2,384 2023 661 2024 433 Total non-cancellable purchase obligations $ 16,982 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2020 | |
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 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: Blacksmith OTR, LLC; F.B.T. Enterprises; Green Carbon, Inc; Silverstone, Inc.; and OTR Wheel Engineering, Inc. During 2020, 2019, and 2018, sales of Titan product to these companies were approximately $0.7 million, $1.1 million, and $1.2 million, respectively. Titan had trade receivables due from these companies of approximately $0.0 million and $0.1 million at December 31, 2020, and 2019. On other sales referred to Titan from these manufacturing representative companies, commissions were approximately $1.3 million, $1.5 million, and $1.7 million during 2020, 2019, and 2018, respectively. Titan had purchases from these companies of approximately$0.0 million, $0.0 million, and $0.4 million during 2020, 2019, and 2018, respectively. In July 2013, the Company entered into a Shareholders’ Agreement with OEP and RDIF to acquire Voltyre-Prom. Mr. Richard M. Cashin Jr., a director of the Company, is the President of OEP, which owned 21.4% of the joint venture at June 30, 2019. The Shareholders’ Agreement contained a settlement put option which potentially required the Company to purchase equity interests in the joint venture from OEP and RDIF at a value set by the agreement. On January 8, 2019, the Company received notification of exercise of the put option from OEP. During the second quarter of 2019, the Company made a payment to OEP in the amount of $16 million representing the majority of the interest on the amount due to OEP. On July 30, 2019, the Titan Purchaser entered into the OEP Agreement with subsidiaries of OEP, relating to the settlement put option under the Shareholders’ Agreement that was exercised by OEP. Pursuant to the terms of the OEP Agreement, on July 31, 2019, the Titan Purchaser paid to OEP $30.7 million in cash, which, together with the Titan Purchaser’s prior payment to OEP of $16 million during the second quarter of 2019, were made in full satisfaction of the settlement put option exercised by OEP under the Shareholders’ Agreement. Immediately following the closing, OEP ceased to have any ownership interests in, and the Titan Purchaser and RDIF owned 64.3% and 35.7%, respectively, of, Voltyre-Prom. See Note 13 for additional information. In July of 2018, a deferred compensation obligation with the Chairman of the Company, Mr. Maurice Taylor, was paid through the transfer of $14.3 million of assets held in a trust. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Segment Information | SEGMENT AND GEOGRAPHICAL 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. The accounting policies of the segments are the same as those described in Note 1, “Description of Business and Significant Accounting Policies.” Segment external revenues, expenses, and income from operations are determined on the basis of the results of operations 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’ goodwill and property, plant, and equipment balances are carried at the corporate level. Titan is organized primarily on the basis of products being included in three marketing 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 of segments as reviewed by the chief operating decision maker of the Company as of and for the years ended December 31, 2020, 2019, and 2018 (amounts in thousands): 2020 2019 2018 Revenues from external customers Agricultural $ 634,652 $ 652,558 $ 694,268 Earthmoving/construction 510,150 648,753 741,733 Consumer 114,511 147,355 166,407 $ 1,259,313 $ 1,448,666 $ 1,602,408 Gross profit Agricultural $ 65,408 $ 55,971 $ 94,217 Earthmoving/construction 37,885 57,678 80,056 Consumer 11,026 15,355 23,993 $ 114,319 $ 129,004 $ 198,266 Income (loss) from operations Agricultural $ 9,838 $ 10,991 $ 62,065 Earthmoving/construction (21,620) (1,892) 31,141 Consumer 1,085 1,849 11,994 Corporate & Unallocated (24,654) (39,380) (62,956) Income (loss) from operations (35,351) (28,432) 42,244 Interest expense (30,554) (33,137) (30,456) Foreign exchange gain (loss) (11,025) 3,999 (11,179) Other income, net 18,799 9,526 19,198 Income (loss) before income taxes $ (58,131) $ (48,044) $ 19,807 Capital expenditures Agricultural $ 10,869 $ 16,500 $ 15,770 Earthmoving/construction 8,859 16,229 19,889 Consumer 1,952 3,685 3,334 Corporate & Unallocated — — 7 $ 21,680 $ 36,414 $ 39,000 Depreciation & amortization Agricultural $ 26,534 $ 23,478 $ 26,299 Earthmoving/construction 21,328 23,235 23,823 Consumer 4,785 5,277 5,129 Corporate & Unallocated 2,008 2,386 2,367 $ 54,655 $ 54,376 $ 57,618 Total assets Agricultural $ 444,843 $ 423,955 $ 464,828 Earthmoving/construction 478,264 496,988 543,927 Consumer 86,752 123,320 129,994 Corporate & Unallocated (a) 22,025 70,044 112,507 $ 1,031,884 $ 1,114,307 $ 1,251,256 (a) Unallocated assets included cash of approximately $13 million, $9 million, and $32 million at year-end 2020, 2019, and 2018, respectively. The table below presents information by geographic area. Revenues from external customers were determined based on the location of the selling subsidiary. Geographic information as of and for the years ended December 31, 2020, 2019, and 2018 was as follows (amounts in thousands): 2020 2019 2018 Net Sales United States $ 583,400 $ 672,556 $ 711,887 Europe / CIS 343,452 400,059 469,322 Latin America 218,258 254,375 271,374 Other international 114,203 121,676 149,825 $ 1,259,313 $ 1,448,666 $ 1,602,408 Long-Lived Assets United States $ 103,748 $ 121,022 $ 137,410 Europe / CIS 163,265 162,817 165,827 Latin America 38,531 50,358 52,393 Other international 14,310 33,398 29,242 $ 319,854 $ 367,595 $ 384,872 |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE Earnings per share for 2020, 2019, and 2018 were as follows (amounts in thousands, except per share data): 2020 2019 2018 Net (loss) income attributable to Titan $ (60,388) $ (48,425) $ 16,087 Redemption value adjustment — (1,928) (12,207) Net (loss) income applicable to common shareholders $ (60,388) $ (50,353) $ 3,880 Determination of Shares: Weighted average shares outstanding (basic) 60,818 60,100 59,820 Effect of stock options/trusts — — 89 Weighted average shares outstanding (diluted) 60,818 60,100 59,909 Earnings per share: Basic and Diluted $ (0.99) $ (0.84) $ 0.06 |
SUBSEQUENT EVENTS (Notes)
SUBSEQUENT EVENTS (Notes) | 12 Months Ended |
Dec. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | SUBSEQUENT EVENTS On February 25, 2021, the Company amended and extended the credit and security agreement with respect to the $125 million revolving credit facility (credit facility) with agent BMO Harris Bank N.A. and other financial institutions party thereto. The amended credit facility was extended for one year with the new maturity occurring on February 16, 2023. The amount available to be borrowed under the amended credit facility was reduced to $100 million at the Company’s request to better align with the current borrowing base consisting of eligible accounts receivable and inventory balances at certain of its domestic subsidiaries. The amended credit facility can be expanded through an accordion provision within the agreement by up to $50 million. The amended agreement otherwise has terms substantially similar to those contained in the agreement prior to the amendment. The Company made the payment to the federal government of $9.2 million including accrued interest on February 25, 2021 for the agreement reached on the Dico case. See Note 25 for additional information. The Company has evaluated subsequent events through the filing of this Form 10-K and determined that there have been no additional subsequent events that have occurred that would require adjustments to our disclosures in the consolidated financial statements. |
SUBSIDIARY GUARANTOR FINANCIAL
SUBSIDIARY GUARANTOR FINANCIAL INFORMATION | 12 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Condensed Financial Information of Parent Company Only Disclosure [Text Block] | SUBSIDIARY GUARANTOR FINANCIAL INFORMATIONThe Company's 6.50% senior secured notes due 2023 are guaranteed by the following 100% 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. The following condensed consolidating financial statements are presented using the equity method of accounting. Certain sales & marketing expenses recorded by non-guarantor subsidiaries have not been allocated to the guarantor subsidiaries. (Amounts in thousands) Consolidating Condensed Statements of Operations Titan Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net sales $ — $ 526,499 $ 1,261,019 $ (528,205) $ 1,259,313 Cost of sales 821 474,191 1,183,387 (528,205) 1,130,194 Asset impairment 1,007 — 13,793 — 14,800 Gross (loss) profit (1,828) 52,308 63,839 — 114,319 Selling, general, and administrative expenses 24,291 10,682 95,969 — 130,942 Research and development expenses 859 2,885 5,269 — 9,013 Royalty expense 2,844 3,473 3,398 — 9,715 (Loss) income from operations (29,822) 35,268 (40,797) — (35,351) Interest expense (28,144) (12) (2,398) — (30,554) Intercompany interest income (expense) 2,071 2,225 (4,296) — — Foreign exchange loss — (905) (10,120) — (11,025) Other income (expense) 865 (248) 18,182 — 18,799 (Loss) income before income taxes (55,030) 36,328 (39,429) — (58,131) (Benefit) provision for income taxes (3,509) 334 10,121 — 6,946 Equity in (loss) earnings of subsidiaries (13,556) — 18,097 (4,541) — Net (loss) income (65,077) 35,994 (31,453) (4,541) (65,077) Net loss attributable to noncontrolling interests — — (4,689) — (4,689) Net (loss) income attributable to Titan $ (65,077) $ 35,994 $ (26,764) $ (4,541) $ (60,388) (Amounts in thousands) Consolidating Condensed Statements of Comprehensive Income (Loss) Titan Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net (loss) income $ (65,077) $ 35,994 $ (31,453) $ (4,541) $ (65,077) Derivative loss (413) — (413) 413 (413) Currency translation adjustment, net (4,140) — (4,140) 4,140 (4,140) Pension liability adjustments, net of tax 3,454 2,668 786 (3,454) 3,454 Comprehensive (loss) income (66,176) 38,662 (35,220) (3,442) (66,176) Net comprehensive loss attributable to noncontrolling interests — — (7,185) — (7,185) Comprehensive (loss) income attributable to Titan $ (66,176) $ 38,662 $ (28,035) $ (3,442) $ (58,991) (Amounts in thousands) Consolidating Condensed Balance Sheets Titan Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Assets Cash and cash equivalents $ 10,998 $ 4 $ 106,429 $ — $ 117,431 Accounts receivable — 1 193,013 — 193,014 Inventories — 31,927 261,752 — 293,679 Prepaid and other current assets 3,955 16,842 33,678 — 54,475 Total current assets 14,953 48,774 594,872 — 658,599 Property, plant, and equipment, net 2,117 83,321 234,416 — 319,854 Investment in subsidiaries 610,405 — 71,326 (681,731) — Other long-term assets 1,865 5,503 46,063 — 53,431 Total assets $ 629,340 $ 137,598 $ 946,677 $ (681,731) $ 1,031,884 Liabilities and Stockholders’ Equity Short-term debt $ — $ — $ 31,119 $ — $ 31,119 Accounts payable 3,409 19,584 144,217 — 167,210 Other current liabilities 21,158 23,091 87,133 — 131,382 Total current liabilities 24,567 42,675 262,469 — 329,711 Long-term debt 396,876 — 36,708 — 433,584 Other long-term liabilities 791 14,359 52,174 — 67,324 Intercompany accounts (13,127) (447,970) 461,097 — — Redeemable noncontrolling interest — — 25,000 — 25,000 Titan stockholders' equity 220,233 528,534 112,228 (681,731) 179,264 Noncontrolling interests — — (2,999) — (2,999) Total liabilities and stockholders’ equity $ 629,340 $ 137,598 $ 946,677 $ (681,731) $ 1,031,884 (Amounts in thousands) Consolidating Condensed Statements of Cash Flows Titan Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidated Net cash provided by operating activities $ 46,306 $ 5,866 $ 5,057 $ 57,229 Cash flows from investing activities: Capital expenditures (183) (6,050) (15,447) (21,680) Sale of Wheels India shares — — 32,852 32,852 Insurance proceeds — — 8,657 8,657 Other, net 283 — 13,109 13,392 Net cash provided by (used for) investing activities 100 (6,050) 39,171 33,221 Cash flows from financing activities: Proceeds from borrowings 32,264 300 59,075 91,639 Payment on debt (67,348) (98) (58,947) (126,393) Dividends paid (603) — — (603) Other financing activities (2,564) (18) (626) (3,208) Net cash (used for) provided by financing activities (38,251) 184 (498) (38,565) Effect of exchange rate change on cash — — (1,253) (1,253) Net increase in cash and cash equivalents 8,155 — 42,477 50,632 Cash and cash equivalents, beginning of period 2,843 4 63,952 66,799 Cash and cash equivalents, end of period $ 10,998 $ 4 $ 106,429 $ 117,431 |
SCHEDULE II - VALUATION RESERVE
SCHEDULE II - VALUATION RESERVES | 12 Months Ended |
Dec. 31, 2020 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
SCHEDULE II – VALUATION RESERVES | Description Balance at beginning Additions to costs and expenses Deductions Balance Year ended December 31, 2020 Reserve deducted in the balance sheet from the assets to which it applies Allowance for doubtful accounts $ 3,714 $ 815 $ (747) $ 3,782 Year ended December 31, 2019 Reserve deducted in the balance sheet from the assets to which it applies Allowance for doubtful accounts $ 3,404 $ 821 $ (511) $ 3,714 Year ended December 31, 2018 Reserve deducted in the balance sheet from the assets to which it applies Allowance for doubtful accounts $ 2,974 $ 541 $ (111) $ 3,404 |
DESCRIPTION OF BUSINESS AND S_2
DESCRIPTION OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Principles of consolidation | Principles of consolidation The consolidated financial statements include the accounts of all majority-owned subsidiaries and variable interest entities in which Titan is the primary beneficiary. Investments in companies in which Titan does not own a majority interest, but which Titan has the ability to exercise significant influence over operating and financial policies are accounted for using the equity method. Investments in other companies are carried at cost. All significant intercompany accounts and transactions have been eliminated. |
Cash equivalents | Cash and cash equivalents The Company considers short-term debt securities with an original maturity of three months or less to be cash equivalents. The cash in the Company's U.S. banks is not fully insured by the Federal Deposit Insurance Corporation. The Company had $100.4 million and $60.6 million of cash in foreign bank accounts at December 31, 2020 and 2019, respectively. The Company's cash in its foreign bank accounts is not fully insured. |
Accounts Receivable and Allowance for Doubtful Accounts | Accounts receivable and allowance for doubtful accountsThe Company carries its accounts receivable at their face amounts less an allowance for doubtful accounts. An allowance for uncollectible receivables is recorded based upon known bad debt risks and past loss history. Actual collection experience may differ from the current estimate of net receivables. |
Inventories | 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. |
Fixed assets | Fixed assets Property, plant, and equipment have been recorded at cost. Depreciation is provided using the straight-line method over the following estimated useful lives of the related assets: Years Building and improvements 25 - 40 Machinery and equipment 7 - 20 Tools, dies, and molds 2 - 9 Maintenance and repairs are expensed as incurred. When property, plant, and equipment are retired or otherwise disposed of, the related cost and accumulated depreciation are eliminated, and any gain or loss on disposition is included in the accompanying Consolidated Statements of Operations. |
Fair value of financial instruments | Fair value of financial instruments The Company records all financial instruments, including cash and cash equivalents, accounts receivable, notes receivable, accounts payable, 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 6.50% senior secured notes due 2023, issued on November 20, 2017 (senior secured notes) were carried at cost of $396.9 million at December 31, 2020. The fair value of the senior secured notes due 2023 at December 31, 2020, as obtained through an independent pricing source, was approximately $370.5 million. |
Equity Method Investments [Policy Text Block] | Investments The Company sold its remaining equity method investment in Wheels India Limited (Wheels India) during 2020 resulting in net proceeds of $32.9 million and net loss of $0.7 million for the year ended December 31, 2020. This equity method investment was included in other long-term assets in the Consolidated Balance Sheets for the year ended December 31, 2019. The Company assesses the carrying value of its equity method investments whenever events and circumstances indicate that the carrying values may not be recoverable. Investment write-downs, if necessary, are recognized in operating results when expected undiscounted future cash flows are less than the carrying value of the asset. These write-downs, if any, are measured as the excess of the carrying value of the asset over the discounted expected future cash flows or the estimated fair value of the asset. The Company uses the cost method to account for investments in entities that are not consolidated or accounted for under the equity method. Under the cost method, investments are reported at cost in other long-term assets on the Consolidated Balance Sheets. The fair values of cost method investments are not estimated if there are no identified events or changes in circumstances that may have a significant adverse effect on the fair values of the investments. |
Foreign currency translation | Foreign currency translation The financial statements of the Company’s foreign subsidiaries are translated to United States currency. Assets and liabilities are translated to United States dollars at period-end exchange rates. Income and expense items are translated at average rates of exchange prevailing during the period. Translation adjustments are included in “Accumulated other comprehensive loss” in stockholders’ equity. Gains and losses that result from foreign currency transactions are included in the accompanying Consolidated Statements of Operations. |
Revenue recognition | Revenue recognition The Company records sales revenue when products are shipped to customers and when our performance obligations with our customer are satisfied. Our obligations under the contracts are satisfied when we transfer control of our products to our customer which is generally upon shipment. Provisions are established for sales returns and uncollectible accounts based on historical experience. Should trends change, adjustments would be necessary to the estimated provisions. |
Cost of sales | Cost of sales Cost of sales is comprised primarily of direct materials and supplies consumed in the manufacturing of the Company’s products, as well as manufacturing labor, depreciation expense, and overhead expense necessary to acquire and convert the purchased materials and supplies into a finished product. Cost of sales also includes all purchasing, receiving, inspection, internal transfers, and related distribution costs. |
Selling, general and administrative expense | Selling, general, and administrative expenseSelling, general, and administrative (SG&A) expense is comprised primarily of sales commissions, marketing expense, selling, and administrative wages, information system costs, legal fees, bank charges, professional fees, depreciation and amortization expense on non-manufacturing assets, and other administrative items |
Research and development expense | Research and development expenseResearch and development (R&D) expenses are expensed as incurred. R&D costs were $9.0 million, $9.9 million, and $11.1 million for the years ended December 31, 2020, 2019, and 2018, respectively. |
Advertising | Advertising Advertising expenses are included in SG&A expense and are expensed as incurred. Advertising costs were approximately $2.3 million, $3.7 million and $3.1 million for the years ended December 31, 2020, 2019 and 2018, respectively. |
Warranty costs | Warranty costs The Company provides limited warranties on workmanship on its products in all market segments. The provision for estimated warranty costs is made in the period when such costs become probable and is based on past warranty experience. See Note 9 for additional information. |
Income taxes | Income taxes Deferred income tax provisions are determined using the liability method to recognize deferred tax assets and liabilities. This method is based upon differences between the financial statement carrying amounts and the respective tax basis of assets and liabilities using enacted tax rates that are expected to apply in the years the temporary differences are expected to be settled or realized. Valuation allowances are recorded where it is considered more likely than not that some portion or all of the deferred tax assets will not be realized. Tax benefits are recognized only for tax positions that are more likely than not to be sustained upon examination by tax authorities. |
Earnings per share | Earnings per share Basic earnings per share (EPS) is computed by dividing consolidated net earnings applicable to common shareholders by the weighted average number of common shares outstanding. Diluted EPS is computed by dividing adjusted consolidated net earnings applicable to common shareholders by the sum of the weighted average number of common shares outstanding and the weighted average number of potential common shares outstanding. Potential common shares consist of outstanding options under the Company’s stock compensation plans. |
Environmental liabilities | Environmental liabilitiesEnvironmental expenditures that relate to current operations are expensed or capitalized as appropriate. Expenditures that relate to an existing condition caused by past operations and that do not contribute to current or future revenue are expensed. Liabilities are recorded when environmental assessments and/or remedial efforts are probable and can be reasonably estimated |
Stock-based compensation | Stock-based compensation The Company has one stock-based compensation plan, which is described in Note 24. Compensation expense for stock-based compensation is recognized over the requisite service period at the estimated fair value of the award at the grant date. The Company granted 80,000 stock options in 2018. The Company did not grant stock options in 2020 and 2019. The Company granted 1,026,946, 355,201 and 376,500 restricted stock awards in 2020, 2019 and 2018, respectively. |
Use of estimates | Use of estimatesThe policies utilized by the Company in the preparation of the financial statements conform to United States generally accepted accounting principles (US GAAP or GAAP) 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] | Adoption of new accounting standards In June 2016, the Financial Accounting Standards Board (the FASB) issued Accounting Standards Update (ASU) No. 2016-13, "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments", which amends the current accounting guidance and requires the measurement of all expected losses based on historical experience, current conditions and reasonable and supportable forecasts. For trade receivables, loans, and other financial instruments, we are required to use a forward-looking expected loss model that reflects losses that are probable rather than the incurred loss model for recognizing credit losses. The standard became effective for interim and annual periods beginning after December 15, 2019. In addition, the FASB issued ASU 2019-04, Codification Improvements to Topic 326, which provides clarity on certain aspects of the amendments in ASU 2016-13. The Company adopted this guidance prospectively on January 1, 2020 and it did not have a material effect on the Company's condensed consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-13, "Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement." The amendments in this update modify the disclosure requirements on fair value measurements in Topic 820, Fair Value Measurement. The amendments in this update are effective for fiscal years beginning after December 15, 2019. We adopted this ASU on January 1, 2020 and it did not have a material effect on the Company's condensed consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-14, "Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans." The amendments in this update modify the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. The amendments in this update are effective for fiscal years ending after December 15, 2020. We adopted this ASU on December 31, 2020 and it did not have a material effect on the Company's condensed consolidated financial statements. See Note 23 for the adopted disclosure requirements as prescribed under ASU No. 2018-14. In March 2020, the SEC issued a final rule that amends the disclosure requirements related to certain registered securities under SEC Regulation S-X Rule 3-10 with respect to the disclosure requirements related to issuers and guarantors of guaranteed debt securities. The final rule allows registrants to provide alternative financial disclosures in either the registrant’s MD&A or financial statements, rather than the previous requirement under Rule 3-10, which required condensed consolidating financial information within the financial statements. It also simplifies the requirements in Rule 3-10 that currently must be met for a parent company to qualify for exceptions allowing it to provide alternative disclosures rather than full audited financial statements. The final rule also reduces the periods for which summarized financial information is required to be presented to the most recent (1) annual period and (2) year-to-date interim period. The final rule applies to annual reports on Form 10-K for fiscal years ending after January 4, 2021 and quarterly reports on Form 10-Q for quarterly periods ending after January 4, 2021 and registrants may voluntarily comply with the final rule before the effective date. The Company adopted the disclosure requirements as of December 31, 2020 and it did not have a material effect on the Company’s consolidated financial statements. Accounting standards issued but not yet adopted In December 2019, the FASB issued ASU 2019-12, Simplifying the Accounting for Income Taxes, as part of its simplification initiative to reduce the cost and complexity in accounting for income taxes. ASU 2019-12 removes certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period, and the recognition of deferred tax liabilities for outside basis differences. ASU 2019-12 also amends other aspects of the guidance to help simplify and promote consistent application of GAAP. The guidance is effective for interim and annual periods beginning after December 15, 2020, with early adoption permitted. We do not believe this will have a material impact on our financial statements. |
DESCRIPTION OF BUSINESS AND S_3
DESCRIPTION OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Property, Plant and Equipment [Table Text Block] | Property, plant, and equipment have been recorded at cost. Depreciation is provided using the straight-line method over the following estimated useful lives of the related assets: Years Building and improvements 25 - 40 Machinery and equipment 7 - 20 Tools, dies, and molds 2 - 9 Property, plant, and equipment at December 31, 2020 and 2019, consisted of the following (amounts in thousands): 2020 2019 Land and improvements $ 43,943 $ 44,386 Buildings and improvements 245,619 249,168 Machinery and equipment 583,847 605,205 Tools, dies, and molds 111,189 113,603 Construction-in-process 11,282 16,237 995,880 1,028,599 Less accumulated depreciation (676,026) (661,004) $ 319,854 $ 367,595 |
ACCOUNTS RECEIVABLE (Tables)
ACCOUNTS RECEIVABLE (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Receivables [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | Accounts receivable at December 31, 2020 and 2019, consisted of the following (amounts in thousands): 2020 2019 Accounts receivable $ 196,796 $ 188,952 Allowance for doubtful accounts (3,782) (3,714) Accounts receivable, net $ 193,014 $ 185,238 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current [Table Text Block] | Inventories at December 31, 2020 and 2019, consisted of the following (amounts in thousands): 2020 2019 Raw material $ 78,733 $ 83,569 Work-in-process 36,485 48,369 Finished goods 178,461 201,418 $ 293,679 $ 333,356 |
PREPAID AND OTHER CURRENT ASS_2
PREPAID AND OTHER CURRENT ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Prepaid Expense and Other Assets, Current [Abstract] | |
Schedule of Other Assets [Table Text Block] | Prepaid and other current assets at December 31, 2020 and 2019, consisted of the following (amounts in thousands): 2020 2019 Factory supplies $ 24,006 $ 27,742 Value added tax 9,579 11,755 Prepaid expense 11,930 10,357 Contract receivable 528 2,753 Prepaid insurance 1,411 1,843 Deposits 651 578 Prepaid taxes 2,403 1,951 Duty receivable 1,545 1,545 Other 2,422 342 $ 54,475 $ 58,869 |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment [Table Text Block] | Property, plant, and equipment have been recorded at cost. Depreciation is provided using the straight-line method over the following estimated useful lives of the related assets: Years Building and improvements 25 - 40 Machinery and equipment 7 - 20 Tools, dies, and molds 2 - 9 Property, plant, and equipment at December 31, 2020 and 2019, consisted of the following (amounts in thousands): 2020 2019 Land and improvements $ 43,943 $ 44,386 Buildings and improvements 245,619 249,168 Machinery and equipment 583,847 605,205 Tools, dies, and molds 111,189 113,603 Construction-in-process 11,282 16,237 995,880 1,028,599 Less accumulated depreciation (676,026) (661,004) $ 319,854 $ 367,595 |
OTHER ASSETS (Tables)
OTHER ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Other Assets, Noncurrent Disclosure [Abstract] | |
Schedule of Other Assets, Noncurrent [Table Text Block] | Other long-term assets at December 31, 2020 and 2019, consisted of the following (amounts in thousands): 2020 2019 Prepaid software $ 10,792 $ 10,809 Other equity investments 5,601 4,973 Amortizable intangibles 1,975 9,766 Manufacturing spares 1,964 2,456 Deferred financing costs 141 264 Investment in Wheels India Limited — 33,982 Notes receivable — 2,000 Other 6,011 4,752 $ 26,484 $ 69,002 |
INTANGIBLE ASSETS (Tables)
INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
Schedule of Intangible Assets and Goodwill [Table Text Block] | The components of intangible assets for each of the years ended December 31, 2020 and 2019, were as follows (amounts in thousands): Weighted- Average Useful Lives (in Years) 2020 2019 Amortizable intangible assets: Customer relationships 0 $ — $ 12,629 Patents, trademarks, and other 10.43 10,181 11,598 Total at cost 10,181 24,227 Less accumulated amortization (8,206) (14,461) $ 1,975 $ 9,766 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | The estimated aggregate amortization expense at December 31, 2020, for each of the years (or other periods) set forth below was as follows (amounts in thousands): 2021 $ 472 2022 144 2023 144 2024 139 2025 123 Thereafter 953 $ 1,975 |
OTHER CURRENT LIABILITIES (Tabl
OTHER CURRENT LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Other Liabilities, Current [Abstract] | |
Schedule of Accrued Liabilities [Table Text Block] | Other current liabilities at December 31, 2020 and 2019, consisted of the following (amounts in thousands): 2020 2019 Wages and benefits $ 34,654 $ 24,979 Warranty 15,040 14,334 Insurance 11,964 12,358 Accrued other taxes 10,071 4,912 Incentive compensation 9,449 6,878 Settlement of legal matter (see footnote 25) 9,327 — Operating lease liability 7,533 6,729 Customer rebates 6,299 5,812 Foreign government grant (1) 4,799 1,217 Accrued interest 2,338 2,374 Customer deposits 1,945 6,396 Other 17,963 21,264 $ 131,382 $ 107,253 (1) The amount relates foreign government grant programs related to certain capital development projects in Italy and Spain. The grants were recorded as deferred income which will be amortized over the life of the capital development projects. |
WARRANTY (Tables)
WARRANTY (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Product Warranties Disclosures [Abstract] | |
Schedule of Product Warranty Liability [Table Text Block] | Changes in the warranty liability for the periods set forth below consisted of the following (amounts in thousands): 2020 2019 Warranty liability, January 1 $ 14,334 $ 16,328 Provision for warranty liabilities 6,853 4,965 Warranty payments made (6,147) (6,959) Warranty liability, December 31 $ 15,040 $ 14,334 |
OTHER LONG-TERM LIABILITIES (Ta
OTHER LONG-TERM LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Other Liabilities, Noncurrent [Abstract] | |
Schedule of Other Assets and Other Liabilities [Table Text Block] | Other long-term liabilities at December 31, 2020 and 2019, consisted of the following (amounts in thousands): 2020 2019 Accrued pension liabilities $ 24,326 $ 31,080 Operating lease liability 17,137 17,360 Foreign government grant (1) 10,279 8,227 Contingencies 2,694 6,500 Income tax liabilities 804 4,503 Other 8,189 10,355 $ 63,429 $ 78,025 (1) The amount relates foreign government grant programs related to certain capital development projects in Italy and Spain. The grants were recorded as deferred income which will be amortized over the life of the capital development projects. |
REVOLVING CREDIT FACILITY AND_2
REVOLVING CREDIT FACILITY AND LONG-TERM DEBT (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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): December 31, 2020 Principal Balance Unamortized Debt Issuance Net Carrying Amount 6.50% senior secured notes due 2023 $ 400,000 $ (3,124) $ 396,876 Titan Europe credit facilities 49,583 — 49,583 Other debt 18,244 — 18,244 Total debt 467,827 (3,124) 464,703 Less amounts due within one year 31,119 — 31,119 Total long-term debt $ 436,708 $ (3,124) $ 433,584 December 31, 2019 Principal Balance Unamortized Debt Issuance Net Carrying Amount 6.50% senior secured notes due 2023 $ 400,000 $ (4,040) $ 395,960 Titan Europe credit facilities 43,591 — 43,591 Revolving credit facility 36,000 — 36,000 Other debt 24,171 — 24,171 Total debt 503,762 (4,040) 499,722 Less amounts due within one year 61,253 — 61,253 Total long-term debt $ 442,509 $ (4,040) $ 438,469 |
Schedule of Maturities of Long-term Debt [Table Text Block] | Aggregate maturities of long-term debt at December 31, 2020, for each of the years (or other periods) set forth below were as follows (amounts in thousands): 2021 $ 31,119 2022 12,378 2023 410,257 2024 6,287 2025 2,684 Thereafter 5,102 $ 467,827 |
REDEEMABLE NONCONTROLLING INT_2
REDEEMABLE NONCONTROLLING INTEREST (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Noncontrolling Interest [Abstract] | |
Redeemable Noncontrolling Interest [Table Text Block] | The following is a reconciliation of redeemable noncontrolling interest as of December 31, 2019 (amounts in thousands): Balance at January 1, 2019 $ 119,813 Reclassification as a result of Agreement regarding put option (49,883) Payment of redeemable noncontrolling interest (46,722) Loss attributable to redeemable noncontrolling interest (819) Currency translation 683 Redemption value adjustment 1,928 Balance at December 31, 2019 $ 25,000 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | Accumulated other comprehensive loss consisted of the following at the dates set forth below (amounts in thousands): Currency Loss on Derivatives Unrecognized Total Balance at January 1, 2019 $ (175,794) $ — $ (27,777) $ (203,571) Currency translation adjustments (10,510) — (10,510) Defined benefit pension plan entries: Amortization of unrecognized losses and prior service cost, net of tax of $133 — 6,566 6,566 Reclassification as result of ownership change (6,203) — (6,203) Reclassification from AOCI to retained earnings - adoption of ASU 2018-02 — (4,933) (4,933) Balance at December 31, 2019 (192,507) — (26,144) (218,651) Currency translation adjustments (1,644) — (1,644) Defined benefit pension plan entries: Amortization of unrecognized losses and prior service cost, net of tax of $43 — 3,454 3,454 Derivative loss — (413) — (413) Balance at December 31, 2020 $ (194,151) $ (413) $ (22,690) $ (217,254) |
VARIABLE INTEREST ENTITIES (Tab
VARIABLE INTEREST ENTITIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure [Abstract] | |
Schedule of Variable Interest Entities [Table Text Block] | The following table summarizes the carrying amount of the VIEs’ assets and liabilities included in the Company’s Consolidated Balance Sheets at December 31, 2020 and 2019 (amounts in thousands): 2020 2019 Cash and cash equivalents $ 1,431 $ 2,190 Inventory 971 1,070 Other current assets 2,156 1,027 Property, plant, and equipment, net 1,253 1,327 Other noncurrent assets — — Total assets $ 5,811 $ 5,614 Current liabilities 557 1,110 Noncurrent liabilities 1,899 579 Total liabilities $ 2,456 $ 1,689 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 non-recourse 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 were as follows at December 31, 2020 and 2019 (amounts in thousands): 2020 2019 Investments $ 5,623 $ 4,973 Other current assets — — Total VIE assets 5,623 4,973 Accounts payable 3,377 2,006 Maximum exposure to loss $ 9,000 $ 6,979 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value, Assets Measured on Recurring and Nonrecurring Basis | Fair value, nonrecurring, Level 2 and 3 measurements from impairments consisted of the following (amounts in thousands): Fair Value Level 2 Level 3 Impairment Charges December 31, 2020 2020 Property, plant and equipment $ 1,874 $ — $ 13,793 Customer relationship — — 6,023 Total $ 1,874 $ — $ 19,816 Inventory impairment (1) 1,007 Total $ 20,823 |
OTHER INCOME (EXPENSE) (Tables)
OTHER INCOME (EXPENSE) (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Other Income and Expenses [Abstract] | |
Interest and Other Income [Table Text Block] | Other income consisted of the following for the years set forth below (amounts in thousands): 2020 2019 2018 Gain on property insurance settlement (1) $ 8,600 $ — $ — Gain on sale of Brownsville, Texas facility 4,855 — — Building rental income 2,336 1,697 1,804 Equity investment income 720 2,394 3,993 Gain on sale of assets 440 871 428 Investment gain related to investments for deferred compensation — — 687 (Loss) gain on sale of Wheels India Limited shares (703) 4,695 — Other (expense) income 2,551 (1,264) 10,179 $ 18,799 $ 8,393 $ 17,091 (1) The gain on property insurance settlement relates to the receipt of insurance proceeds for the year ended December 31, 2020 for a 2017 fire that occurred at a facility of TTRC, a subsidiary of the Company, located in Fort McMurray in Alberta, Canada. |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block] | (Loss) income before income taxes, consisted of the following for the years set forth below (amounts in thousands): 2020 2019 2018 Domestic $ (36,761) $ (52,234) $ (298) Foreign (21,370) 4,190 20,105 $ (58,131) $ (48,044) $ 19,807 |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | The income tax provision was as follows for the years set forth below (amounts in thousands): 2020 2019 2018 Current Federal $ (4,050) $ (4,599) $ (2,379) State 326 622 (65) Foreign 13,677 9,752 11,497 9,953 5,775 9,053 Deferred Federal — — — State — — — Foreign (3,007) (2,300) (2,291) (3,007) (2,300) (2,291) Income tax provision $ 6,946 $ 3,475 $ 6,762 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | The income tax provision differs from the amount of income tax determined by applying the statutory U.S. federal income tax rate to pre-tax (loss) income as a result of the following: 2020 2019 2018 Statutory U.S. federal tax rate 21.0 % 21.0 % 21.0 % Unrecognized tax positions 5.9 6.1 (12.4) Impact of foreign income (8.2) (2.2) (8.8) Valuation allowance (38.4) (29.0) (0.2) State taxes, net (0.7) (0.9) 0.3 Nondeductible royalty (1.2) (1.5) 3.8 Tax Cuts and Jobs Act — — 26.6 Sale of investment 8.7 — — Other, net 1.0 (0.7) 3.8 Effective tax rate (11.9) % (7.2) % 34.1 % |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s deferred tax assets and liabilities at December 31, 2020 and 2019, were as follows (amounts in thousands): 2020 2019 Deferred tax assets: Net operating loss carryforwards $ 151,597 $ 129,599 Pension 3,904 5,026 Inventory 6,758 6,673 Warranty 5,648 4,004 Employee benefits and related costs 9,819 8,255 Prepaid royalties 3,755 4,092 Interest limitation 16,067 11,067 Lease liability 7,734 7,164 Other 19,633 17,847 Deferred tax assets 224,915 193,727 Deferred tax liabilities: Fixed assets (15,603) (21,846) Intangible assets (1,012) (3,136) Lease assets (7,759) (7,047) Other (2,669) (1,359) Deferred tax liabilities (27,043) (33,388) Subtotal 197,872 160,339 Valuation allowance (199,176) (164,680) Net deferred tax liability $ (1,304) $ (4,341) |
Schedule of Unrecognized Tax Benefits Roll Forward [Table Text Block] | A reconciliation of the total amounts of unrecognized tax benefits at December 31 were as follows (amounts in thousands): 2020 2019 2018 Balance at January 1 $ 4,097 $ 7,406 $ 9,365 Increases to tax positions taken during the current year — — 19 Increases to tax positions taken during the prior years 13 973 — Decreases to tax positions taken during prior years — (350) (1,336) Decreases due to lapse of statutes of limitations (3,099) (3,429) (637) Settlements — (506) — Foreign exchange 1 3 (5) Balance at December 31 $ 1,012 $ 4,097 $ 7,406 |
EMPLOYEE BENEFIT PLANS (Tables)
EMPLOYEE BENEFIT PLANS (Tables) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Retirement Benefits [Abstract] | ||
Schedule of Changes in Accumulated Postemployment Benefit Obligations [Table Text Block] | The following table provides the change in benefit obligation, change in plan assets, funded status, and amounts recognized in the Consolidated Balance Sheet of the defined benefit pension plans as of December 31, 2020 and 2019 (amounts in thousands): Change in benefit obligation: 2020 2019 Benefit obligation at beginning of year $ 113,559 $ 108,513 Plan amendments — (1,087) Service cost 801 765 Interest cost 3,496 4,385 Actuarial assumption changes 5,589 — Actuarial loss 1,237 9,114 Benefits paid (8,634) (8,516) Foreign currency translation (1,108) 385 Benefit obligation at end of year $ 114,940 $ 113,559 Change in plan assets: Fair value of plan assets at beginning of year $ 81,375 $ 72,496 Actual return on plan assets 12,749 15,446 Employer contributions 3,433 1,943 Benefits paid (7,740) (8,516) Foreign currency translation (73) 6 Fair value of plan assets at end of year $ 89,744 $ 81,375 Unfunded status at end of year $ (25,196) $ (32,184) Amounts recognized in Consolidated Balance Sheet: Noncurrent assets $ 1,740 $ 1,016 Current liabilities (1,529) (2,120) Noncurrent liabilities (25,407) (31,080) Net amount recognized in the Consolidated Balance Sheet $ (25,196) $ (32,184) | |
Schedule of Amounts in Accumulated Other Comprehensive Income (Loss) to be Recognized over Next Fiscal Year [Table Text Block] | Amounts recognized in accumulated other comprehensive loss: 2020 2019 Unrecognized prior service cost $ 779 $ 1,087 Unrecognized net loss (33,877) (38,183) Deferred tax effect of unrecognized items 11,181 10,952 Net amount recognized in accumulated other comprehensive loss $ (21,917) $ (26,144) | |
Defined Benefit Plan, Assumptions [Table Text Block] | The weighted-average assumptions used in the actuarial computation that derived the benefit obligations at December 31 were as follows: 2020 2019 Discount rate 2.5 % 3.2 % Expected long-term return on plan assets 7.0 % 6.9 % The weighted-average assumptions used in the actuarial computation that derived net periodic pension cost for the years ended December 31, 2020, 2019, and 2018 were as follows: 2020 2019 2018 Discount rate 3.6 % 5.0 % 5.3 % Expected long-term return on plan assets 6.9 % 6.9 % 7.4 % | |
Schedule of Net Benefit Costs [Table Text Block] | The following table provides the components of net periodic pension cost for the plans, settlement cost, and the assumptions used in the measurement of the Company’s benefit obligation for the years ended December 31, 2020, 2019, and 2018 (amounts in thousands): Components of net periodic benefit cost and other Net periodic benefit cost: 2020 2019 2018 Service cost $ 801 $ 765 $ 626 Interest cost 3,496 4,385 4,330 Assumed return on assets (5,463) (4,737) (5,959) Amortization of unrecognized prior service cost (69) 49 137 Amortization of net unrecognized loss 2,840 3,238 2,784 Net periodic pension cost $ 1,605 $ 3,700 $ 1,918 | |
Schedule of Allocation of Plan Assets [Table Text Block] | The allocation of the fair value of plan assets was as follows: Percentage of Plan Assets Target Asset Category 2020 2019 2020 U.S. equities (a) 61 % 62 % 40% - 80% Fixed income 20 % 22 % 20% - 50% Cash and cash equivalents 10 % 7 % 0% - 20% International equities (a) 7 % 7 % 0% - 16% REITs 2 % 2 % 100 % 100 % (a) Total equities may not exceed 80% of total plan assets. The fair value of the plan assets by asset categories consisted of the following as of the dates set forth below (amounts in thousands): Fair Value Measurements as of December 31, 2020 Total Level 1 Level 2 Level 3 Money market funds $ 8,916 $ 8,916 $ — $ — Common stock 35,951 35,951 — — Bonds and securities 3,638 3,638 — — Mutual and insurance funds 41,239 40,410 829 — Totals $ 89,744 $ 88,915 $ 829 $ — Assets measured at net asset value (a) — $ 89,744 | Fair Value Measurements as of December 31, 2019 Total Level 1 Level 2 Level 3 Money market funds $ 5,453 $ 5,453 $ — $ — Common stock 33,675 33,675 — — Bonds and securities 4,592 4,592 — — Mutual and insurance funds 37,655 36,656 999 — Totals $ 81,375 $ 80,376 $ 999 $ — Assets measured at net asset value (a) — $ 81,375 (a) Assets measured at net asset value consist of common / collective trusts. |
Schedule of Expected Benefit Payments [Table Text Block] | Projected benefit payments from the plans as of December 31, 2020, are estimated as follows (amounts in thousands): 2021 $ 9,180 2022 8,088 2023 8,032 2024 7,889 2025 7,669 2026-2030 35,111 |
STOCK COMPENSATION (Tables)
STOCK COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
STOCK OPTION PLANS [Abstract] | |
Share-based Payment Arrangement, Option, Activity [Table Text Block] | The following is a summary of activity in stock options during the year ended December 31, 2020: Shares Subject Weighted- Average Weighted- Average Remaining Contractual Life (in Years) Aggregate Intrinsic Value (in thousands) Outstanding, December 31, 2019 861,738 $ 16.79 Granted — — Exercised — — Forfeited/Expired (201,038) 16.21 Outstanding, December 31, 2020 660,700 16.97 3.55 $ — Exercisable, December 31, 2020 660,700 16.97 3.55 $ — Additional Stock Option Information (all amounts in thousands, except for per share data): 2020 2019 2018 Weighted-average fair value per share of stock options granted $ — $ — $ 5.85 Grant date fair value of stock options vested — — 468 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | Weighted average assumptions used for stock options issued in 2020, 2019, and 2018: 2020 2019 2018 Expected life (in years) 0 0 6.0 Expected volatility — % — % 50.7 % Expected dividends — % — % 0.2 % Risk-free interest rate — % — % 2.88 % |
Share-based Payment Arrangement, Restricted Stock Unit, Activity [Table Text Block] | Restricted Stock Shares Weighted Average Grant Date Fair Value Unvested at December 31, 2019 585,071 $ 5.52 Granted 1,026,946 1.80 Vested (457,640) 4.54 Forfeited/Expired (10,000) 9.16 Unvested at December 31, 2020 1,144,377 2.54 |
LEASE COMMITMENTS (Tables)
LEASE COMMITMENTS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Lease, Cost [Table Text Block] | Supplemental balance sheet information related to leases was as follows (amounts in thousands): Balance Sheet Classification 2020 Operating lease ROU assets Operating lease assets $ 24,356 Operating lease current liabilities Other current liabilities $ 7,533 Operating lease long-term liabilities Other long-term liabilities 17,137 Total operating lease liabilities $ 24,670 Finance lease, gross Property, plant & equipment, net $ 6,785 Finance lease accumulated depreciation Property, plant & equipment, net (3,279) Finance lease, net $ 3,506 Finance lease current liabilities Other current liabilities $ 608 Finance lease long-term liabilities Other long-term liabilities 2,072 Total finance lease liabilities $ 2,680 |
Lessee, Operating Lease, Disclosure [Table Text Block] | At December 31, 2020, maturity of lease liabilities were as follows (amounts in thousands): Operating Leases Finance Leases 2021 $ 9,241 $ 1,051 2022 7,174 1,000 2023 4,796 739 2024 2,494 307 2025 1,266 103 Thereafter 3,186 39 Total future minimum lease payments $ 28,157 $ 3,239 Less imputed interest 3,487 559 $ 24,670 $ 2,680 Weighted average remaining lease term (in years) 4.22 3.36 |
Finance Lease, Liability, Maturity [Table Text Block] | Operating Leases Finance Leases 2021 $ 9,241 $ 1,051 2022 7,174 1,000 2023 4,796 739 2024 2,494 307 2025 1,266 103 Thereafter 3,186 39 Total future minimum lease payments $ 28,157 $ 3,239 Less imputed interest 3,487 559 $ 24,670 $ 2,680 Weighted average remaining lease term (in years) 4.22 3.36 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Other Commitments [Line Items] | |
Other Commitments [Table Text Block] | At December 31, 2020, the Company's expected cash outflow resulting from non-cancellable purchase obligations are summarized by year in the table below (amounts in thousands): 2021 $ 13,504 2022 2,384 2023 661 2024 433 Total non-cancellable purchase obligations $ 16,982 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting Information [Line Items] | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | The table below presents information about certain operating results of segments as reviewed by the chief operating decision maker of the Company as of and for the years ended December 31, 2020, 2019, and 2018 (amounts in thousands): 2020 2019 2018 Revenues from external customers Agricultural $ 634,652 $ 652,558 $ 694,268 Earthmoving/construction 510,150 648,753 741,733 Consumer 114,511 147,355 166,407 $ 1,259,313 $ 1,448,666 $ 1,602,408 Gross profit Agricultural $ 65,408 $ 55,971 $ 94,217 Earthmoving/construction 37,885 57,678 80,056 Consumer 11,026 15,355 23,993 $ 114,319 $ 129,004 $ 198,266 Income (loss) from operations Agricultural $ 9,838 $ 10,991 $ 62,065 Earthmoving/construction (21,620) (1,892) 31,141 Consumer 1,085 1,849 11,994 Corporate & Unallocated (24,654) (39,380) (62,956) Income (loss) from operations (35,351) (28,432) 42,244 Interest expense (30,554) (33,137) (30,456) Foreign exchange gain (loss) (11,025) 3,999 (11,179) Other income, net 18,799 9,526 19,198 Income (loss) before income taxes $ (58,131) $ (48,044) $ 19,807 Capital expenditures Agricultural $ 10,869 $ 16,500 $ 15,770 Earthmoving/construction 8,859 16,229 19,889 Consumer 1,952 3,685 3,334 Corporate & Unallocated — — 7 $ 21,680 $ 36,414 $ 39,000 Depreciation & amortization Agricultural $ 26,534 $ 23,478 $ 26,299 Earthmoving/construction 21,328 23,235 23,823 Consumer 4,785 5,277 5,129 Corporate & Unallocated 2,008 2,386 2,367 $ 54,655 $ 54,376 $ 57,618 Total assets Agricultural $ 444,843 $ 423,955 $ 464,828 Earthmoving/construction 478,264 496,988 543,927 Consumer 86,752 123,320 129,994 Corporate & Unallocated (a) 22,025 70,044 112,507 $ 1,031,884 $ 1,114,307 $ 1,251,256 |
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area [Table Text Block] | The table below presents information by geographic area. Revenues from external customers were determined based on the location of the selling subsidiary. Geographic information as of and for the years ended December 31, 2020, 2019, and 2018 was as follows (amounts in thousands): 2020 2019 2018 Net Sales United States $ 583,400 $ 672,556 $ 711,887 Europe / CIS 343,452 400,059 469,322 Latin America 218,258 254,375 271,374 Other international 114,203 121,676 149,825 $ 1,259,313 $ 1,448,666 $ 1,602,408 Long-Lived Assets United States $ 103,748 $ 121,022 $ 137,410 Europe / CIS 163,265 162,817 165,827 Latin America 38,531 50,358 52,393 Other international 14,310 33,398 29,242 $ 319,854 $ 367,595 $ 384,872 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Earnings per share for 2020, 2019, and 2018 were as follows (amounts in thousands, except per share data): 2020 2019 2018 Net (loss) income attributable to Titan $ (60,388) $ (48,425) $ 16,087 Redemption value adjustment — (1,928) (12,207) Net (loss) income applicable to common shareholders $ (60,388) $ (50,353) $ 3,880 Determination of Shares: Weighted average shares outstanding (basic) 60,818 60,100 59,820 Effect of stock options/trusts — — 89 Weighted average shares outstanding (diluted) 60,818 60,100 59,909 Earnings per share: Basic and Diluted $ (0.99) $ (0.84) $ 0.06 |
SUBSIDIARY GUARANTOR FINANCIA_2
SUBSIDIARY GUARANTOR FINANCIAL INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Condensed Income Statement [Table Text Block] | (Amounts in thousands) Consolidating Condensed Statements of Operations Titan Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net sales $ — $ 526,499 $ 1,261,019 $ (528,205) $ 1,259,313 Cost of sales 821 474,191 1,183,387 (528,205) 1,130,194 Asset impairment 1,007 — 13,793 — 14,800 Gross (loss) profit (1,828) 52,308 63,839 — 114,319 Selling, general, and administrative expenses 24,291 10,682 95,969 — 130,942 Research and development expenses 859 2,885 5,269 — 9,013 Royalty expense 2,844 3,473 3,398 — 9,715 (Loss) income from operations (29,822) 35,268 (40,797) — (35,351) Interest expense (28,144) (12) (2,398) — (30,554) Intercompany interest income (expense) 2,071 2,225 (4,296) — — Foreign exchange loss — (905) (10,120) — (11,025) Other income (expense) 865 (248) 18,182 — 18,799 (Loss) income before income taxes (55,030) 36,328 (39,429) — (58,131) (Benefit) provision for income taxes (3,509) 334 10,121 — 6,946 Equity in (loss) earnings of subsidiaries (13,556) — 18,097 (4,541) — Net (loss) income (65,077) 35,994 (31,453) (4,541) (65,077) Net loss attributable to noncontrolling interests — — (4,689) — (4,689) Net (loss) income attributable to Titan $ (65,077) $ 35,994 $ (26,764) $ (4,541) $ (60,388) |
Condensed Statement of Comprehensive Income [Table Text Block] | (Amounts in thousands) Consolidating Condensed Statements of Comprehensive Income (Loss) Titan Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net (loss) income $ (65,077) $ 35,994 $ (31,453) $ (4,541) $ (65,077) Derivative loss (413) — (413) 413 (413) Currency translation adjustment, net (4,140) — (4,140) 4,140 (4,140) Pension liability adjustments, net of tax 3,454 2,668 786 (3,454) 3,454 Comprehensive (loss) income (66,176) 38,662 (35,220) (3,442) (66,176) Net comprehensive loss attributable to noncontrolling interests — — (7,185) — (7,185) Comprehensive (loss) income attributable to Titan $ (66,176) $ 38,662 $ (28,035) $ (3,442) $ (58,991) |
Condensed Balance Sheet [Table Text Block] | (Amounts in thousands) Consolidating Condensed Balance Sheets Titan Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Assets Cash and cash equivalents $ 10,998 $ 4 $ 106,429 $ — $ 117,431 Accounts receivable — 1 193,013 — 193,014 Inventories — 31,927 261,752 — 293,679 Prepaid and other current assets 3,955 16,842 33,678 — 54,475 Total current assets 14,953 48,774 594,872 — 658,599 Property, plant, and equipment, net 2,117 83,321 234,416 — 319,854 Investment in subsidiaries 610,405 — 71,326 (681,731) — Other long-term assets 1,865 5,503 46,063 — 53,431 Total assets $ 629,340 $ 137,598 $ 946,677 $ (681,731) $ 1,031,884 Liabilities and Stockholders’ Equity Short-term debt $ — $ — $ 31,119 $ — $ 31,119 Accounts payable 3,409 19,584 144,217 — 167,210 Other current liabilities 21,158 23,091 87,133 — 131,382 Total current liabilities 24,567 42,675 262,469 — 329,711 Long-term debt 396,876 — 36,708 — 433,584 Other long-term liabilities 791 14,359 52,174 — 67,324 Intercompany accounts (13,127) (447,970) 461,097 — — Redeemable noncontrolling interest — — 25,000 — 25,000 Titan stockholders' equity 220,233 528,534 112,228 (681,731) 179,264 Noncontrolling interests — — (2,999) — (2,999) Total liabilities and stockholders’ equity $ 629,340 $ 137,598 $ 946,677 $ (681,731) $ 1,031,884 |
Condensed Cash Flow Statement [Table Text Block] | (Amounts in thousands) Consolidating Condensed Statements of Cash Flows Titan Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidated Net cash provided by operating activities $ 46,306 $ 5,866 $ 5,057 $ 57,229 Cash flows from investing activities: Capital expenditures (183) (6,050) (15,447) (21,680) Sale of Wheels India shares — — 32,852 32,852 Insurance proceeds — — 8,657 8,657 Other, net 283 — 13,109 13,392 Net cash provided by (used for) investing activities 100 (6,050) 39,171 33,221 Cash flows from financing activities: Proceeds from borrowings 32,264 300 59,075 91,639 Payment on debt (67,348) (98) (58,947) (126,393) Dividends paid (603) — — (603) Other financing activities (2,564) (18) (626) (3,208) Net cash (used for) provided by financing activities (38,251) 184 (498) (38,565) Effect of exchange rate change on cash — — (1,253) (1,253) Net increase in cash and cash equivalents 8,155 — 42,477 50,632 Cash and cash equivalents, beginning of period 2,843 4 63,952 66,799 Cash and cash equivalents, end of period $ 10,998 $ 4 $ 106,429 $ 117,431 |
DESCRIPTION OF BUSINESS AND S_4
DESCRIPTION OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2020 | Jul. 31, 2019 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Deposits, Foreign | $ 100,400 | $ 60,600 | |||
Retained deficit | (135,025) | (74,334) | |||
Loss from operations | (35,351) | (28,432) | $ 42,244 | ||
Provision (benefit) for income tax | 6,946 | 3,475 | 6,762 | ||
Net income (loss) | $ (65,077) | $ (51,519) | $ 13,045 | ||
Earnings Per Share, Basic | $ (0.99) | $ (0.84) | $ 0.06 | ||
Inventory | $ 293,679 | $ 333,356 | |||
Senior Notes | 396,900 | ||||
Debt Instrument, Fair Value Disclosure | 370,500 | ||||
Investment in subsidiaries | 0 | ||||
Equity Method Investment, Ownership Percentage | 21.40% | 64.30% | |||
Research and development expenses | 9,013 | 9,859 | $ 11,146 | ||
Advertising Expense | $ 2,300 | 3,700 | $ 3,100 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures | 0 | 80,000 | |||
Other current liabilities | $ 131,382 | 107,253 | |||
Noncontrolling interests | $ (2,999) | $ 4,137 | |||
Restricted stock awards (in shares) | 1,026,946 | 355,201 | 376,500 | ||
Proceeds from Sale of Equity Method Investments | $ 32,852 | $ 19,021 | $ 0 | ||
Senior Secured Notes 6.50 Percent [Member] [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Debt Instrument, Interest Rate, Stated Percentage | 6.50% | ||||
Senior Notes | $ 400,000 | ||||
Wheels India [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Investment in subsidiaries | $ 0 | $ 33,982 | |||
Minimum [Member] | Building and Building Improvements [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Property, Plant and Equipment, Useful Life, Maximum | 25 years | ||||
Minimum [Member] | Machinery and Equipment [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Property, Plant and Equipment, Useful Life, Maximum | 7 years | ||||
Minimum [Member] | Tools, Dies and Molds [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Property, Plant and Equipment, Useful Life, Maximum | 2 years | ||||
Maximum [Member] | Building and Building Improvements [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Property, Plant and Equipment, Useful Life, Maximum | 25 years | ||||
Maximum [Member] | Machinery and Equipment [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Property, Plant and Equipment, Useful Life, Maximum | 7 years | ||||
Maximum [Member] | Tools, Dies and Molds [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Property, Plant and Equipment, Useful Life, Maximum | 2 years |
ACCOUNTS RECEIVABLE (Details)
ACCOUNTS RECEIVABLE (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2016 |
Receivables [Abstract] | ||||
Accounts receivable | $ 196,796 | $ 188,952 | ||
Allowance for doubtful accounts | (3,782) | (3,714) | $ (3,404) | $ (2,974) |
Accounts receivable, net | $ 193,014 | $ 185,238 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Inventory Disclosure [Abstract] | ||
Raw material | $ 78,733 | $ 83,569 |
Work-in-process | 36,485 | 48,369 |
Finished goods | 178,461 | 201,418 |
Inventory, Net | $ 293,679 | $ 333,356 |
PREPAID AND OTHER CURRENT ASS_3
PREPAID AND OTHER CURRENT ASSETS (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Prepaid Expense and Other Assets, Current [Abstract] | ||
Factory supplies | $ 24,006 | $ 27,742 |
Value added tax | 9,579 | 11,755 |
Prepaid expense | 11,930 | 10,357 |
Investments for deferred compensation | 528 | 2,753 |
Prepaid insurance | 1,411 | 1,843 |
Deposits | 651 | 578 |
Prepaid taxes | 2,403 | 1,951 |
Duty receivable | 1,545 | 1,545 |
Other | 2,422 | 342 |
Prepaid and other current assets | $ 54,475 | $ 58,869 |
PROPERTY, PLANT AND EQUIPMENT_3
PROPERTY, PLANT AND EQUIPMENT, NET (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Line Items] | ||||
Property, Plant and Equipment, Gross | $ 995,880 | $ 1,028,599 | ||
Less accumulated depreciation | (676,026) | (661,004) | ||
Property, Plant and Equipment, Net | 319,854 | 367,595 | ||
Depreciation | 51,300 | 50,900 | $ 53,900 | |
Asset impairment | 20,823 | 0 | 0 | $ 9,900 |
Proceeds from Sale of Buildings | 11,400 | |||
Gain (Loss) on Sale of Properties | 4,855 | |||
Total assets | 1,031,884 | 1,114,307 | 1,251,256 | |
Disposal Group, Including Discontinued Operation, Other Assets, Current | 0 | 7,203 | ||
Asset Impairment Cost | 14,800 | 0 | $ 0 | |
Titan Tire Reclamation Corporation [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Total assets | 500 | |||
Asset Impairment Cost | 13,800 | |||
Land and Land Improvements [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, Plant and Equipment, Gross | 43,943 | 44,386 | ||
Building and Building Improvements [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, Plant and Equipment, Gross | 245,619 | 249,168 | ||
Machinery and Equipment [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, Plant and Equipment, Gross | 583,847 | 605,205 | ||
Tools, Dies and Molds [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, Plant and Equipment, Gross | 111,189 | 113,603 | ||
Construction in Progress [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, Plant and Equipment, Gross | $ 11,282 | $ 16,237 |
OTHER ASSETS (Details)
OTHER ASSETS (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Other Assets, Noncurrent [Abstract] | ||
Equity Method Investments | $ 0 | |
Prepaid software | 10,792 | $ 10,809 |
Manufacturing spares | 1,975 | 9,766 |
Investment in Wheels India Limited | 1,964 | 2,456 |
Deferred financing costs | 0 | 2,000 |
Notes receivable | 141 | 264 |
Other | 6,011 | 4,752 |
Other noncurrent assets | 26,484 | 69,002 |
Equity Method Investments [Member] | ||
Other Assets, Noncurrent [Abstract] | ||
Equity Method Investments | 5,601 | 4,973 |
Wheels India [Member] | ||
Other Assets, Noncurrent [Abstract] | ||
Equity Method Investments | $ 0 | $ 33,982 |
INTANGIBLE ASSETS (Details)
INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 0 years | ||
Finite-Lived Intangible Asset, Useful Life | 10 years 5 months 4 days | ||
Finite-Lived Customer Relationships, Gross | $ 0 | $ 12,629 | |
Finite-Lived Trademarks, Gross | 10,181 | 11,598 | |
Finite-Lived Intangible Assets, Gross | 10,181 | 24,227 | |
Finite-Lived Intangible Assets, Accumulated Amortization | (8,206) | (14,461) | |
Intangible Assets, Net (Excluding Goodwill) | 1,975 | 9,766 | |
Amortization of Intangible Assets | 2,300 | $ 2,200 | $ 2,300 |
2021 | 472 | ||
2022 | 144 | ||
2023 | 144 | ||
2024 | 139 | ||
2025 | 123 | ||
Thereafter | 953 | ||
Impairment of Intangible Assets (Excluding Goodwill) | $ 6,000 |
OTHER CURRENT LIABILITIES (Deta
OTHER CURRENT LIABILITIES (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Other Liabilities, Current [Abstract] | ||
Wages and benefits | $ 34,654 | $ 24,979 |
Warranty | 15,040 | 14,334 |
Insurance | 11,964 | 12,358 |
Incentive compensation | 9,449 | 6,878 |
Loss Contingency Accrual | 9,327 | 0 |
Operating Lease, Liability, Current | 7,533 | 6,729 |
Customer deposits | 1,945 | 6,396 |
Customer rebates | 6,299 | 5,812 |
Accrued other taxes | 10,071 | 4,912 |
Accrued interest | 2,338 | 2,374 |
Italian government grant | 4,799 | 1,217 |
Other | 17,963 | 21,264 |
Other current liabilities | $ 131,382 | $ 107,253 |
WARRANTY (Details)
WARRANTY (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Product Warranties Disclosures [Abstract] | ||
Warranty liability, January 1 | $ 14,334 | $ 16,328 |
Provision for warranty liabilities | 6,853 | 4,965 |
Warranty payments made | (6,147) | (6,959) |
Warranty liability, December 31 | $ 15,040 | $ 14,334 |
OTHER LONG-TERM LIABILITIES (De
OTHER LONG-TERM LIABILITIES (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Other Liabilities, Noncurrent [Abstract] | ||
Accrued pension liabilities | $ 24,326 | $ 31,080 |
Operating Lease, Liability, Noncurrent | 17,137 | 17,360 |
Foreign government grant (1) | 10,279 | 8,227 |
Contingencies | 2,694 | 6,500 |
Income tax liabilities | 804 | 4,503 |
Other | 8,189 | 10,355 |
Other Liabilities, Noncurrent | $ 63,429 | $ 78,025 |
REVOLVING CREDIT FACILITY AND_3
REVOLVING CREDIT FACILITY AND LONG-TERM DEBT (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Instruments [Abstract] | ||
Senior Notes | $ 396,900 | |
Debt Instrument, Unamortized Discount | (3,124) | $ (4,040) |
Debt Instrument, Unamortized Discount (Premium), Net | 3,124 | 4,040 |
Long-term Debt | 464,703 | 499,722 |
Long-term Debt, Gross | $ 467,827 | 503,762 |
Long-term Line of Credit, Noncurrent | 36,000 | |
Short-term Debt, Weighted Average Interest Rate, at Point in Time | 6.50% | |
Maturities of Long-term Debt [Abstract] | ||
2021 | $ 31,119 | |
2022 | 12,378 | |
2023 | 410,257 | |
2024 | 6,287 | |
2025 | 2,684 | |
Thereafter | 5,102 | |
Letters of Credit Outstanding, Amount | 19,700 | |
Line of Credit Facility, Current Borrowing Capacity | 50,900 | |
Short-term debt | 31,119 | 61,253 |
Debt Instrument, Unamortized Discount, Current | 0 | 0 |
Long-term Debt and Lease Obligation | 433,584 | 438,469 |
Senior Secured Notes 6.50 Percent [Member] [Member] | ||
Debt Instruments [Abstract] | ||
Senior Notes | 400,000 | |
Debt Instrument, Unamortized Discount | (3,124) | (4,040) |
Long-term Debt | $ 396,876 | 395,960 |
Maturities of Long-term Debt [Abstract] | ||
Debt Instrument, Interest Rate, Stated Percentage | 6.50% | |
Debt Instrument, Interest Rate, Effective Percentage | 6.79% | |
Titan Europe [Member] | ||
Debt Instruments [Abstract] | ||
Debt Instrument, Unamortized Discount | $ 0 | 0 |
Other Borrowings | 49,583 | 43,591 |
Other Debt Obligations [Member] | ||
Debt Instruments [Abstract] | ||
Debt Instrument, Unamortized Discount | 0 | 0 |
Maturities of Long-term Debt [Abstract] | ||
Other Long-term Debt | 18,244 | 24,171 |
Voltyre-Prom [Member] | ||
Maturities of Long-term Debt [Abstract] | ||
Other Long-term Debt | 5,300 | |
Titan Brazil [Member] | ||
Maturities of Long-term Debt [Abstract] | ||
Other Long-term Debt | 11,800 | |
BMO Harris Bank N.A. [Member] | Line of Credit [Member] | ||
Maturities of Long-term Debt [Abstract] | ||
Line of Credit Facility, Maximum Borrowing Capacity | 125,000 | |
Long-term Debt [Member] | ||
Maturities of Long-term Debt [Abstract] | ||
Long-term Debt and Lease Obligation | $ 436,708 | $ 442,509 |
DERIVATIVE FINANCIAL INSTRUME_2
DERIVATIVE FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Derivative, Gain (Loss) on Derivative, Net | $ 0.4 | $ 0.9 |
REDEEMABLE NONCONTROLLING INT_3
REDEEMABLE NONCONTROLLING INTEREST (Details) - USD ($) $ in Thousands | Jul. 31, 2019 | Sep. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Noncontrolling Interest [Line Items] | ||||||
Payment related to redeemable noncontrolling interest agreement | $ 30,700 | $ 30,700 | $ 16,000 | $ 0 | $ 71,722 | $ 0 |
Noncontrolling Interest, Ownership Percentage by Parent | 64.30% | |||||
Redeemable noncontrolling interest | 25,000 | 25,000 | 119,813 | |||
Noncontrolling interest, reclassification | (49,883) | |||||
Loss attributable to redeemable noncontrolling interest | (819) | (1,091) | ||||
Currency translation | 683 | (4,496) | ||||
Redemption value adjustment | 0 | 1,928 | 12,207 | |||
Equity Method Investment, Ownership Percentage | 64.30% | 21.40% | ||||
Additional paid-in capital [Member] | ||||||
Noncontrolling Interest [Line Items] | ||||||
Noncontrolling Interest, Period Increase (Decrease) | 9,437 | |||||
Redemption value adjustment | $ 1,928 | $ 12,207 | ||||
RDIF [Member] | ||||||
Noncontrolling Interest [Line Items] | ||||||
Equity Method Investment, Ownership Percentage | 35.70% | |||||
One Equity Partners [Member] | ||||||
Noncontrolling Interest [Line Items] | ||||||
Payment related to redeemable noncontrolling interest agreement | $ (46,722) |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||
Currency Translation Adjustments beginning of year | $ (192,507) | $ (175,794) | |
Accumulated Other Comprehensive (Income) Loss, Defined Benefit Plan, after Tax | (26,144) | (27,777) | |
Accumulated Other Comprehensive Income (Loss), Net of Tax | (218,651) | (203,571) | |
Currency translation adjustments | (1,644) | (10,510) | |
Unrecognized net loss, net of tax of $(439), $215 | 3,454 | 6,566 | |
Derivative, Loss on Derivative | (413) | ||
Reclassification of CTA from Redeemable Noncontrolling interest | (6,203) | ||
Currency Translation Adjustments end of year | (194,151) | (192,507) | $ (175,794) |
Other Comprehensive Income (Loss), Securities, Available-for-sale, Tax | 0 | 0 | 0 |
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss), Reclassification Adjustment from AOCI, Tax | 0 | 0 | |
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss) Arising During Period, Tax | 43 | 133 | |
Tax Cuts and Jobs Act, Reclassification from AOCI to Retained Earnings, Tax Effect | (4,933) | ||
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Tax | $ (413) | $ 0 | $ 0 |
STOCKHOLDERS EQUITY (Details)
STOCKHOLDERS EQUITY (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Stockholders' Equity Attributable to Parent [Abstract] | ||
Common Stock, Dividends, Per Share, Cash Paid | $ 0.005 | $ 0.02 |
Dividends on common stock | $ 303 | $ 1,207 |
VARIABLE INTEREST ENTITIES (Det
VARIABLE INTEREST ENTITIES (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2020 | Jul. 31, 2019 | Dec. 31, 2017 | |
Variable Interest Entity [Line Items] | ||||||
Noncontrolling Interest, Ownership Percentage by Parent | 64.30% | |||||
Cash and cash equivalents | $ 117,431 | $ 66,799 | $ 81,685 | $ 143,570 | ||
Inventory | 293,679 | 333,356 | ||||
Other current assets | 2,422 | 342 | ||||
Property, plant, and equipment, net | 319,854 | 367,595 | ||||
Other noncurrent assets | 26,484 | 69,002 | ||||
Total assets | 1,031,884 | 1,114,307 | 1,251,256 | |||
Current liabilities | 329,711 | 327,153 | ||||
Liabilities | 830,619 | 850,319 | ||||
Accounts payable | 167,210 | 158,647 | ||||
Increase (Decrease) in Inventories | (37,747) | (63,654) | $ 77,919 | |||
Fair Value, Nonrecurring | ||||||
Variable Interest Entity [Line Items] | ||||||
Increase (Decrease) in Inventories | 1,007 | |||||
Variable Interest Entity, Primary Beneficiary [Member] | ||||||
Variable Interest Entity [Line Items] | ||||||
Cash and cash equivalents | 1,431 | 2,190 | ||||
Inventory | 971 | 1,070 | ||||
Other current assets | 2,156 | 1,027 | ||||
Property, plant, and equipment, net | 1,253 | 1,327 | ||||
Other noncurrent assets | 0 | 0 | ||||
Total assets | 5,811 | 5,614 | ||||
Current liabilities | 557 | 1,110 | ||||
Noncurrent liabilities | 1,899 | 579 | ||||
Liabilities | 2,456 | 1,689 | ||||
Variable Interest Entity, Not Primary Beneficiary [Member] | ||||||
Variable Interest Entity [Line Items] | ||||||
Other current assets | 0 | 0 | ||||
Total assets | 5,623 | 4,973 | ||||
Investments | 5,623 | 4,973 | ||||
Accounts payable | 3,377 | 2,006 | ||||
Maximum exposure to loss | $ 9,000 | $ 6,979 | ||||
Titan National Australia Holdings [Member] | ||||||
Variable Interest Entity [Line Items] | ||||||
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 40.00% | |||||
Titan Tire Reclamation Corporation [Member] | ||||||
Variable Interest Entity [Line Items] | ||||||
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 50.00% | |||||
Total assets | $ 500 | |||||
Titan Tire Russia B.V. [Member] | ||||||
Variable Interest Entity [Line Items] | ||||||
Noncontrolling Interest, Ownership Percentage by Parent | 43.00% |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Severance Costs | $ 1,700 | |||
Property, plant, and equipment, net | 319,854 | $ 367,595 | ||
Finite-Lived Customer Relationships, Gross | 0 | 12,629 | ||
Increase (Decrease) in Inventories | (37,747) | (63,654) | $ 77,919 | |
Asset impairment | 20,823 | 0 | 0 | $ 9,900 |
Asset Impairment Cost | 14,800 | $ 0 | 0 | |
Unusual or Infrequent Item, or Both, Insurance Proceeds | 8,600 | $ 1,600 | ||
Impairment of Intangible Assets (Excluding Goodwill) | 6,000 | |||
Inventory Write-down | 1,000 | |||
Titan Tire Reclamation Corporation [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Asset Impairment Cost | 13,800 | |||
Fair Value, Nonrecurring | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Increase (Decrease) in Inventories | 1,007 | |||
Fair Value, Inputs, Level 2 [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Property, plant, and equipment, net | 1,874 | |||
Finite-Lived Customer Relationships, Gross | 0 | |||
Assets, Fair Value Disclosure | 1,874 | |||
Fair Value, Inputs, Level 3 [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Property, plant, and equipment, net | 0 | |||
Finite-Lived Customer Relationships, Gross | 0 | |||
Assets, Fair Value Disclosure | 0 | |||
Fair Value, Nonrecurring | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Property, plant, and equipment, net | 13,793 | |||
Finite-Lived Customer Relationships, Gross | 6,023 | |||
Assets, Fair Value Disclosure | $ 19,816 |
ASSET IMPAIRMENT (Details)
ASSET IMPAIRMENT (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Asset Impairment Charges [Abstract] | ||||
Unusual or Infrequent Item, or Both, Insurance Proceeds | $ 8,600 | $ 1,600 | ||
Impairment of Intangible Assets (Excluding Goodwill) | 6,000 | |||
Property, plant, and equipment, net | 319,854 | $ 367,595 | ||
Asset Impairment Cost | $ 14,800 | 0 | 0 | |
Asset Impairment Charges [Text Block] | ASSET IMPAIRMENT On September 21, 2017, a fire occurred at a facility of Titan Tire Reclamation Corporation (TTRC), a subsidiary of the Company, located in Fort McMurray, AB. The TTRC facility contains six thermal vacuum recovery (TVR) units, which are large, contained capsules used to recycle large mining tires. The fire started within one of the TVR units and was contained to a building housing three of the TVR units. As a result of the damage caused by the fire, Titan recorded an asset impairment of $9.9 million. Titan carries both casualty and property insurance for its facilities and equipment, as well as business interruption insurance. The asset impairment amount was partially offset by an initial insurance advance received in the amount of $1.6 million. The Company received additional insurance proceeds during 2020 totaling $8.6 million which is recorded in other income line item within the Consolidated Statements of Operations. See Note 21 for further detail. The Company recorded a $13.8 million asset impairment charge during the year ended December 31, 2020 related to certain machinery and equipment located at TTRC as a result of market declines, which indicated the remaining book value of the equipment is more than the fair market value. The TTRC asset impairment charge is recorded in cost of sales line item in the Consolidated Statement of Operations. During the fourth quarter of 2020, the Company recorded an impairment charge of $6.0 million related to the customer relationships intangible asset in Australia as a result of attrition of several customers since the business was initially acquired in 2012. This impairment charge is recorded in the selling, general and administrative expenses line item in the Consolidated Statement of Operations. | |||
Asset impairment | $ 20,823 | $ 0 | $ 0 | $ 9,900 |
ROYALTY EXPENSE (Details)
ROYALTY EXPENSE (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Other Income and Expenses [Abstract] | |||
Royalty Expense | $ 9,715 | $ 9,880 | $ 10,087 |
OTHER INCOME (EXPENSE) (Details
OTHER INCOME (EXPENSE) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Other Income and Expenses [Abstract] | |||
Gain (Loss) on Sale of Investments | $ (703) | $ 4,695 | |
Gain (Loss) on Investments | 0 | 0 | $ 687 |
Equity investment income | 720 | 2,394 | 3,993 |
Gain on sale of assets | 440 | 871 | 428 |
Rental Income, Nonoperating | 2,336 | 1,697 | 1,804 |
Gain on building and investment sale | 4,152 | 4,695 | 0 |
Other (expense) income | 2,551 | (1,264) | 10,179 |
Other income | 18,799 | 8,393 | 17,091 |
Gain (Loss) Related to Litigation Settlement | 8,600 | ||
Gain (Loss) on Sale of Properties | 4,855 | ||
Proceeds from Noncontrolling Interests | 24,882 | ||
Common Stock, Shares Held in Employee Trust | 1,188 | ||
Variable Interest Entity, Members Draw | (559) | $ (2,968) | (2,448) |
Unusual or Infrequent Item, or Both, Insurance Proceeds | 8,600 | $ 1,600 | |
Production Related Impairments or Charges | $ 13,800 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest [Abstract] | |||||
Domestic | $ (36,761) | $ (52,234) | $ (298) | ||
Foreign | (21,370) | 4,190 | 20,105 | ||
(Loss) income before income taxes | (58,131) | (48,044) | 19,807 | ||
Income Tax Expense (Benefit), Continuing Operations [Abstract] | |||||
Current Federal Tax Expense (Benefit) | (4,050) | (4,599) | (2,379) | ||
Current State and Local Tax Expense (Benefit) | 326 | 622 | (65) | ||
Current Foreign Tax Expense (Benefit) | 13,677 | 9,752 | 11,497 | ||
Current Income Tax Expense (Benefit) | 9,953 | 5,775 | 9,053 | ||
Deferred Federal Income Tax Expense (Benefit) | 0 | 0 | 0 | ||
Deferred State and Local Income Tax Expense (Benefit) | 0 | 0 | 0 | ||
Deferred Foreign Income Tax Expense (Benefit) | (3,007) | (2,300) | (2,291) | ||
Deferred Income Tax Expense (Benefit) | (3,007) | (2,300) | (2,291) | ||
Income Tax Expense (Benefit) | $ 6,946 | $ 3,475 | $ 6,762 | ||
Effective Income Tax Rate, Continuing Operations, Tax Rate Reconciliation [Abstract] | |||||
Statutory U.S. federal tax rate | 21.00% | 21.00% | 21.00% | 21.00% | 35.00% |
Unrecognized tax positions | 5.90% | 6.10% | (12.40%) | ||
Impact of foreign income | (8.20%) | (2.20%) | (8.80%) | ||
Valuation allowance | (38.40%) | (29.00%) | (0.20%) | ||
State taxes, net | (0.70%) | (0.90%) | 0.30% | ||
Nondeductible royalty | (1.20%) | (1.50%) | 3.80% | ||
Tax Cuts and Jobs Act | 0.00% | 0.00% | 26.60% | ||
Other, net | 1.00% | (0.70%) | 3.80% | ||
Effective tax rate | (11.90%) | (7.20%) | 34.10% | ||
SEC Schedule, 12-09, Valuation Allowances and Reserves, Period Increase (Decrease) | $ 22,300 | $ 13,900 | |||
Components of Deferred Tax Assets and Liabilities [Abstract] | |||||
Net operating loss carryforwards | 151,597 | 129,599 | |||
Pension | 3,904 | 5,026 | |||
Inventory | 6,758 | 6,673 | |||
Warranty | 5,648 | 4,004 | |||
Employee benefits and related costs | 9,819 | 8,255 | |||
Prepaid royalties | 3,755 | 4,092 | |||
Deferred Tax Asset, Interest Limitation | 16,067 | 11,067 | |||
Deferred Tax Assets, Leasing Arrangements | 7,734 | 7,164 | |||
Deferred Tax Liabilities, Leasing Arrangements | (7,759) | (7,047) | |||
Other | 19,633 | 17,847 | |||
Deferred tax assets | 224,915 | 193,727 | |||
Fixed assets | (15,603) | (21,846) | |||
Intangible assets | (1,012) | (3,136) | |||
Other | (2,669) | (1,359) | |||
Deferred tax liabilities | 27,043 | 33,388 | |||
Subtotal | 197,872 | 160,339 | |||
Valuation allowance | (199,176) | (164,680) | |||
Net deferred tax liability | (1,304) | (4,341) | |||
Deferred Tax Assets, Operating Loss Carryforwards, Subject to Expiration | 3,300 | ||||
Deferred Tax Assets, Operating Loss Carryforwards, Not Subject to Expiration | 148,300 | ||||
SEC Schedule, 12-09, Valuation Allowances and Reserves, Increase (Decrease) Adjustment | 34,500 | 13,100 | |||
Deferred Tax Assets, Operating Loss Carryforwards, Domestic | 193,200 | ||||
Deferred Tax Assets, Operating Loss Carryforwards, State and Local | 299,100 | ||||
Deferred Tax Assets, Operating Loss Carryforwards, Foreign | 378,100 | ||||
Unrecognized Tax Benefits, Gross | 800 | 4,500 | $ 8,900 | ||
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 800 | ||||
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||||
Balance at January 1 | 1,012 | 4,097 | 7,406 | $ 9,365 | |
Increases to tax positions taken during the current year | 0 | 0 | 19 | ||
Increases to tax positions taken during the prior years | 13 | 973 | 0 | ||
Decreases to tax positions taken during prior years | 0 | (350) | (1,336) | ||
Decreases due to lapse of statutes of limitations | (3,099) | (3,429) | (637) | ||
Settlements | 0 | (506) | 0 | ||
Unrecognized Tax Benefits, Decrease Resulting from Foreign Currency Translation | 3 | 5 | |||
Unrecognized Tax Benefits, Increase Resulting from Foreign Currency Translation | 1 | ||||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense | (1,100) | (1,000) | 500 | ||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | $ 300 | $ 1,400 | $ 2,400 |
EMPLOYEE BENEFIT PLANS (Details
EMPLOYEE BENEFIT PLANS (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020USD ($)shares | Dec. 31, 2019USD ($)shares | Dec. 31, 2018USD ($)shares | ||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Plan Assets, Amount | $ 89,744 | $ 81,375 | ||
Liability, Defined Benefit Pension Plan, Noncurrent | (24,326) | (31,080) | ||
Accumulated Other Comprehensive (Income) Loss, Defined Benefit Plan, after Tax | $ (22,690) | $ (26,144) | $ (27,777) | |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Rate of Return on Plan Assets | 7.00% | |||
Defined Benefit Plan, Equity Securities | 100.00% | 100.00% | ||
Defined Benefit Plan, Plan Assets, Employer, Related Party, Amount | $ 800 | $ 600 | ||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Historical Rate of Return, Equities | 8.50% | |||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Historical Rate of Return, Fixed Income Securities | 4.00% | |||
Defined Benefit Plan, Expected Future Benefit Payments in Year One | $ 9,180 | |||
Defined Benefit Plan, Expected Future Benefit Payments in Year Two | 8,088 | |||
Defined Benefit Plan, Expected Future Benefit Payments in Year Three | 8,032 | |||
Defined Benefit Plan, Expected Future Benefit Payments in Year Four | 7,889 | |||
Defined Benefit Plan, Expected Future Benefit Payments in Year Five | 7,669 | |||
Defined Benefit Plan, Expected Future Benefit Payments in Five Fiscal Years Thereafter | $ 35,111 | |||
Defined Contribution Plan, Employer's Matching Contribution of Employee's Gross Pay Allowed to be Matched, Percent | 50.00% | |||
Defined Contribution Plan, Employer Matching Contribution, Percent | 6.00% | |||
Stock Issued During Period, Shares, Employee Benefit Plan | shares | 653,211 | 266,121 | 54,517 | |
Defined Contribution Plan, Cost | $ 1,200 | $ 1,200 | $ 600 | |
Defined Benefit Plan, Expected Future Employer Contributions, Next Fiscal Year | 3,200 | |||
Money Market Funds [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Plan Assets, Amount | $ 8,916 | $ 5,453 | ||
Equity Securities, U.S. [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Equity Securities | [1] | 61.00% | 62.00% | |
Fixed Income Funds [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Equity Securities | 20.00% | 22.00% | ||
Cash and Cash Equivalents [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Equity Securities | 10.00% | 7.00% | ||
Equity Securites, International [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Equity Securities | [1] | 7.00% | 7.00% | |
Equity Securites, REITs [Member] [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Equity Securities | [1] | 2.00% | 2.00% | |
Domestic Common Stock [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Plan Assets, Amount | $ 35,951 | $ 33,675 | ||
Debt Security, Corporate, US [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Plan Assets, Amount | 3,638 | 4,592 | ||
525190 Other Insurance Funds [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Plan Assets, Amount | 41,239 | 37,655 | ||
Common Collective Trusts [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Plan Assets, Amount | $ 0 | $ 0 | ||
Parent Common Stock [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Equity Securities | 1.00% | 1.00% | ||
Maximum [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Equity Securities | 80.00% | |||
Maximum [Member] | Equity Securities, U.S. [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Target Allocation Percentage of Assets, Equity Securities | 80.00% | |||
Maximum [Member] | Fixed Income Funds [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Target Allocation Percentage of Assets, Equity Securities | 50.00% | |||
Maximum [Member] | Cash and Cash Equivalents [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Target Allocation Percentage of Assets, Equity Securities | 20.00% | |||
Maximum [Member] | Equity Securites, International [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Target Allocation Percentage of Assets, Equity Securities | [1] | 16.00% | ||
Minimum [Member] | Equity Securities, U.S. [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Target Allocation Percentage of Assets, Equity Securities | [1] | 40.00% | ||
Minimum [Member] | Fixed Income Funds [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Target Allocation Percentage of Assets, Equity Securities | 20.00% | |||
Minimum [Member] | Cash and Cash Equivalents [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Target Allocation Percentage of Assets, Equity Securities | 0.00% | |||
Minimum [Member] | Equity Securites, International [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Target Allocation Percentage of Assets, Equity Securities | [1] | 0.00% | ||
Fair Value, Inputs, Level 1 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Plan Assets, Amount | $ 88,915 | $ 80,376 | ||
Fair Value, Inputs, Level 1 [Member] | Money Market Funds [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Plan Assets, Amount | 8,916 | 5,453 | ||
Fair Value, Inputs, Level 1 [Member] | Domestic Common Stock [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Plan Assets, Amount | 35,951 | 33,675 | ||
Fair Value, Inputs, Level 1 [Member] | Debt Security, Corporate, US [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Plan Assets, Amount | 3,638 | 4,592 | ||
Fair Value, Inputs, Level 1 [Member] | 525190 Other Insurance Funds [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Plan Assets, Amount | 40,410 | 36,656 | ||
Fair Value, Inputs, Level 2 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Plan Assets, Amount | 829 | 999 | ||
Fair Value, Inputs, Level 2 [Member] | Money Market Funds [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | ||
Fair Value, Inputs, Level 2 [Member] | Domestic Common Stock [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | ||
Fair Value, Inputs, Level 2 [Member] | Debt Security, Corporate, US [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | ||
Fair Value, Inputs, Level 2 [Member] | 525190 Other Insurance Funds [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Plan Assets, Amount | 829 | 999 | ||
Fair Value, Inputs, Level 3 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | ||
Fair Value, Inputs, Level 3 [Member] | Money Market Funds [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | ||
Fair Value, Inputs, Level 3 [Member] | Domestic Common Stock [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | ||
Fair Value, Inputs, Level 3 [Member] | Debt Security, Corporate, US [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | ||
Fair Value, Inputs, Level 3 [Member] | 525190 Other Insurance Funds [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | ||
Titan Tire, Bryan and Walcott Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Benefit Obligation | 96,800 | |||
Defined Benefit Plan, Plan Assets, Amount | $ 88,400 | |||
Defined Contribution/401k Plans, Total [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Contribution/401k Plans, Number Sponsored by the Company | 2 | |||
Pension Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Benefit Obligation | $ 114,940 | 113,559 | 108,513 | |
Defined Benefit Plan, Benefit Obligation, Increase (Decrease) for Plan Amendment | 0 | (1,087) | ||
Defined Benefit Plan, Service Cost | 801 | 765 | 626 | |
Defined Benefit Plan, Interest Cost | 3,496 | 4,385 | 4,330 | |
Defined Benefit Plan, Accumulated Benefit Obligation, Increase (Decrease) for Plan Amendment | 5,589 | |||
Defined Benefit Plan, Actuarial Net (Gains) Losses | 1,237 | 9,114 | ||
Defined Benefit Plan, Benefit Obligation, Benefits Paid | 8,634 | 8,516 | ||
Defined Benefit Plan, Foreign Currency Exchange Rate Changes, Benefit Obligation | (1,108) | 385 | ||
Defined Benefit Plan, Plan Assets, Amount | 89,744 | 81,375 | 72,496 | |
Defined Benefit Plan, Plan Assets, Increase (Decrease) for Actual Return (Loss) | 12,749 | 15,446 | ||
Defined Benefit Plan, Plan Assets, Contributions by Employer | 3,433 | 1,943 | ||
Defined Benefit Plan, Benefits Paid (Deprecated 2017-01-31) | (7,740) | (8,516) | ||
Defined Benefit Plan, Plan Assets, Foreign Currency Translation Gain (Loss) | (73) | 6 | ||
Defined Benefit Plan, Funded (Unfunded) Status of Plan | (25,196) | (32,184) | ||
Assets for Plan Benefits, Defined Benefit Plan | 1,740 | 1,016 | ||
Liability, Defined Benefit Pension Plan, Current | (1,529) | (2,120) | ||
Liability, Defined Benefit Pension Plan, Noncurrent | (25,407) | (31,080) | ||
Defined Benefit Plan, Amounts for Asset (Liability) Recognized in Statement of Financial Position | (25,196) | (32,184) | ||
Defined Benefit Plan, Accumulated Other Comprehensive (Income) Loss, Prior Service Cost (Credit), before Tax | 779 | 1,087 | ||
Defined Benefit Plan, Accumulated Other Comprehensive Income (Loss), Gain (Loss), before Tax | (33,877) | (38,183) | ||
Deferred Tax Assets, Tax Deferred Expense, Compensation and Benefits, Postretirement Benefits | 11,181 | 10,952 | ||
Accumulated Other Comprehensive (Income) Loss, Defined Benefit Plan, after Tax | $ (21,917) | $ (26,144) | ||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 2.50% | 3.20% | ||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Benefit Obligations | 7.00% | 6.90% | ||
Defined Benefit Plan, Expected Return (Loss) on Plan Assets | $ (5,463) | $ (4,737) | (5,959) | |
Other Comprehensive Income (Loss), Amortization, Pension and Other Postretirement Benefit Plans, Net Prior Service Cost (Credit) Recognized in Net Periodic Benefit Cost, before Tax | (69) | 49 | 137 | |
Defined Benefit Plan, Amortization of Gain (Loss) | 2,840 | 3,238 | 2,784 | |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) | $ 1,605 | $ 3,700 | $ 1,918 | |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate | 3.60% | 5.00% | 5.30% | |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Rate of Return on Plan Assets | 6.90% | 6.90% | 7.40% | |
Foreign Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Benefit Obligation | $ 18,100 | |||
Defined Benefit Plan, Plan Assets, Amount | 1,300 | |||
Defined Contribution Plan, Cost | $ 3,700 | $ 3,900 | $ 4,100 | |
Defined Contribution/401k Plans, Employees Covered by Collective Bargaining Arrangements [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Contribution/401k Plans, Number Sponsored by the Company | 3 | |||
[1] | Total equities may not exceed 80% of total plan assets. |
STOCK COMPENSATION (Details)
STOCK COMPENSATION (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation | $ 2,500,000 | $ 1,500,000 | $ 1,100,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Shares Subject to Option, beginning of year | 861,738 | ||
Granted | 0 | 80,000 | |
Exercised | 0 | ||
Forfeited/Expired | (201,038) | ||
Shares Subject to Option, end of year | 660,700 | 861,738 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | 660,700 | ||
Weighted-Average Exercise Price, beginning of year | $ 16.79 | ||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | 0 | ||
Exercised | 0 | ||
Forfeited/Expired | $ 16.21 | ||
Weighted-Average Exercise Price, end of year | 16.97 | $ 16.79 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price | $ 16.97 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 3 years 6 months 18 days | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | 3 years 6 months 18 days | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | $ 0 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value | $ 0 | ||
Granted | $ 0 | $ 0 | $ 5.85 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Granted in Period, Grant Date Fair Value | $ 0 | $ 0 | $ 468,000 |
Treasury Stock, Shares | 89,612 | 427,771 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Remaining Contractual Term | 0 days | 0 days | 6 years |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 0.00% | 0.00% | 50.70% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 0.00% | 0.00% | 0.20% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 0.00% | 0.00% | 2.88% |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Intrinsic Value | $ 5.52 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | 1.80 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | 4.54 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Intrinsic Value | $ 2.54 | $ 5.52 | |
Deferred Compensation Share-based Arrangements, Liability, Current | $ 1,700,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Weighted Average Remaining Contractual Term | 1 year 2 months 12 days | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value | $ 1,300,000 | $ 600,000 | $ 300,000 |
Restricted stock awards (in shares) | 1,026,946 | 355,201 | 376,500 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $ 9.16 | ||
Equity Incentive Plan 2005 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 500,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Granted | 80,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 585,071 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Granted | 1,026,946 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | (457,640) | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 1,144,377 | 585,071 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | 10,000 |
LITIGATION (Details)
LITIGATION (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2018 | Dec. 31, 2019 | Dec. 31, 2020 | Jun. 30, 2020 | Dec. 31, 2016 | |
Loss Contingencies [Line Items] | |||||
Loss Contingency Accrual | $ 0 | $ 9,327 | |||
Accrual for Environmental Loss Contingencies, Revision in Estimates | 1,050 | ||||
Accrual for Environmental Loss Contingencies | $ 11,500 | ||||
Legal Appeal Bond | $ 6,000 | ||||
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 |
LEASE COMMITMENTS (Details)
LEASE COMMITMENTS (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | ||
Operating Lease, Right-of-Use Asset | $ 24,356 | $ 23,914 |
Operating Lease, Liability, Current | 7,533 | 6,729 |
Operating Lease, Liability, Noncurrent | 17,137 | 17,360 |
Operating Lease, Liability | 24,670 | |
Finance Lease, Gross | 6,785 | |
Finance Lease Accumulated Depreciation | 3,279 | |
Finance Lease, Right-of-Use Asset | 3,506 | |
Finance Lease, Liability, Current | 608 | |
Finance Lease, Liability, Noncurrent | 2,072 | |
Finance Lease, Liability | $ 2,680 | |
Operating Lease, Weighted Average Remaining Lease Term | 4 years 2 months 19 days | |
Lessee, Operating Lease, Liability, Payment, Due | ||
2021 | $ 9,241 | |
2022 | 7,174 | |
2023 | 4,796 | |
2024 | 2,494 | |
2025 | 1,266 | |
Thereafter | 3,186 | |
Total future minimum lease payments | 28,157 | |
Less imputed interest | 3,487 | |
Finance Lease, Liability, Payment, Due [Abstract] | ||
2021 | 1,051 | |
2022 | 1,000 | |
2023 | 739 | |
2024 | 307 | |
2025 | 103 | |
Thereafter | 39 | |
Total future minimum lease payments | 3,239 | |
Less imputed interest | $ 559 | |
Finance Lease, Weighted Average Remaining Lease Term | 3 years 4 months 9 days | |
Operating Lease, Payments | $ 8,700 | |
Finance Lease, Interest Payment on Liability | $ 300 |
COMMITMENTS AND CONTINGENCIES_3
COMMITMENTS AND CONTINGENCIES (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Other Commitments [Line Items] | |
2020 | $ 13,504 |
2021 | 2,384 |
2022 | 661 |
2023 | 433 |
Total non-cancellable purchase obligations | $ 16,982 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - USD ($) $ in Thousands | Jul. 31, 2019 | Sep. 30, 2020 | Jun. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Related Party Transaction [Line Items] | |||||||
Related Party Transaction, Revenues from Transactions with Related Party | $ 700 | $ 1,100 | $ 1,200 | ||||
Related Party Transaction, Due from (to) Related Party | 0 | ||||||
Related Party Transaction, Expenses from Transactions with Related Party | 1,300 | 1,500 | 1,700 | ||||
Related Party Transaction, Purchases from Related Party | 0 | 400 | |||||
Equity Method Investment, Ownership Percentage | 64.30% | 21.40% | |||||
Transfer from Investments | $ 14,300 | 0 | 0 | 14,268 | |||
Payment of interest on redeemable noncontrolling interest | $ 16,000 | ||||||
Payment related to redeemable noncontrolling interest agreement | $ 30,700 | $ 30,700 | $ 16,000 | $ 0 | $ 71,722 | $ 0 | |
Noncontrolling Interest, Ownership Percentage by Parent | 64.30% | ||||||
RDIF [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 35.70% | ||||||
Equity Method Investment, Ownership Percentage | 35.70% |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Segment Reporting Information [Line Items] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 1,259,313 | $ 1,448,666 | $ 1,602,408 | ||
Gross profit | 114,319 | 129,004 | 198,266 | ||
Income (loss) from operations | (35,351) | (28,432) | 42,244 | ||
Interest expense | (30,554) | (32,004) | (28,349) | ||
Loss on senior note repurchase | 8,657 | 0 | 0 | ||
Foreign exchange (loss) gain | (11,025) | 3,999 | (11,179) | ||
Other income | 18,799 | 8,393 | 17,091 | ||
Loss before income taxes | (58,131) | (48,044) | 19,807 | ||
Payments to Acquire Property, Plant, and Equipment | 21,680 | 36,414 | 39,000 | ||
Depreciation & amortization | 54,655 | 54,376 | 57,618 | ||
Total assets | 1,031,884 | 1,114,307 | 1,251,256 | ||
Cash and cash equivalents | 117,431 | 66,799 | 81,685 | $ 143,570 | |
Long-lived Assets | 319,854 | 367,595 | 384,872 | ||
Operating Segments [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | 1,259,313 | 1,448,666 | 1,602,408 | ||
Gross profit | 114,319 | 129,004 | 198,266 | ||
Operating Segments [Member] | Agricultural [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | 634,652 | 652,558 | 694,268 | ||
Gross profit | 65,408 | 55,971 | 94,217 | ||
Income (loss) from operations | 9,838 | 10,991 | 62,065 | ||
Payments to Acquire Property, Plant, and Equipment | 10,869 | 16,500 | 15,770 | ||
Depreciation & amortization | 26,534 | 23,478 | 26,299 | ||
Total assets | 444,843 | 423,955 | 464,828 | ||
Operating Segments [Member] | Earthmoving/construction [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | 510,150 | 648,753 | 741,733 | ||
Gross profit | 37,885 | 57,678 | 80,056 | ||
Income (loss) from operations | (21,620) | (1,892) | 31,141 | ||
Payments to Acquire Property, Plant, and Equipment | 8,859 | 16,229 | 19,889 | ||
Depreciation & amortization | 21,328 | 23,235 | 23,823 | ||
Total assets | 478,264 | 496,988 | 543,927 | ||
Operating Segments [Member] | Consumer [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | 114,511 | 147,355 | 166,407 | ||
Gross profit | 11,026 | 15,355 | 23,993 | ||
Income (loss) from operations | 1,085 | 1,849 | 11,994 | ||
Payments to Acquire Property, Plant, and Equipment | 1,952 | 3,685 | 3,334 | ||
Depreciation & amortization | 4,785 | 5,277 | 5,129 | ||
Total assets | 86,752 | 123,320 | 129,994 | ||
Operating Segments [Member] | Unallocated Amount to Segment [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Income (loss) from operations | (24,654) | (39,380) | (62,956) | ||
Payments to Acquire Property, Plant, and Equipment | 0 | 0 | 7 | ||
Depreciation & amortization | 2,008 | 2,386 | 2,367 | ||
Total assets | [1] | 22,025 | 70,044 | 112,507 | |
Cash and cash equivalents | 13,000 | 9,000 | 32,000 | ||
Unallocated Amount to Segment [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Interest expense | (30,554) | (33,137) | (30,456) | ||
Foreign exchange (loss) gain | (11,025) | 3,999 | (11,179) | ||
Other income | 18,799 | 9,526 | 19,198 | ||
Loss before income taxes | $ (58,131) | $ (48,044) | $ 19,807 | ||
[1] | Unallocated assets included cash of approximately $13 million, $9 million, and $32 million at year-end 2020, 2019, and 2018, respectively |
SEGMENT INFORMATION GEOGRAPHIC
SEGMENT INFORMATION GEOGRAPHIC INFORMATION (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 1,259,313 | $ 1,448,666 | $ 1,602,408 |
Long-Lived Assets | 319,854 | 367,595 | 384,872 |
UNITED STATES | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 583,400 | 672,556 | 711,887 |
Long-Lived Assets | 103,748 | 121,022 | 137,410 |
Europe [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 343,452 | 400,059 | 469,322 |
Long-Lived Assets | 163,265 | 162,817 | 165,827 |
Latin America [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 218,258 | 254,375 | 271,374 |
Long-Lived Assets | 38,531 | 50,358 | 52,393 |
Other Countries [Domain] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 114,203 | 121,676 | 149,825 |
Long-Lived Assets | $ 14,310 | $ 33,398 | $ 29,242 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 400 | ||
Net (loss) income attributable to Titan | $ (60,388) | $ (48,425) | $ 16,087 |
Redemption value adjustment | 0 | (1,928) | (12,207) |
Net (loss) income applicable to common shareholders | $ (60,388) | $ (50,353) | $ 3,880 |
Weighted Average Number of Shares Outstanding, Basic | 60,818 | 60,100 | 59,820 |
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements | 0 | 0 | 89 |
Earnings Per Share, Basic and Diluted | $ (0.99) | $ (0.84) | $ 0.06 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2020 | Jul. 31, 2019 | |
Subsequent Event [Line Items] | |||||
Equity Method Investment, Ownership Percentage | 21.40% | 64.30% | |||
Proceeds from Sale of Equity Method Investments | $ 32,852 | $ 19,021 | $ 0 |
SUBSIDIARY GUARANTOR FINANCIA_3
SUBSIDIARY GUARANTOR FINANCIAL INFORMATION (Details) - USD ($) $ in Thousands | Jul. 31, 2019 | Sep. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Condensed Financial Statements, Captions [Line Items] | |||||||
Proceeds from Sale of Equity Method Investments | $ 32,852 | $ 19,021 | $ 0 | ||||
Income Statement [Abstract] | |||||||
Revenue from Contract with Customer, Excluding Assessed Tax | 1,259,313 | 1,448,666 | 1,602,408 | ||||
Cost of Goods and Services Sold | 1,130,194 | 1,319,662 | 1,404,142 | ||||
Asset Impairment Cost | 14,800 | 0 | 0 | ||||
Asset impairment | 20,823 | 0 | 0 | $ 9,900 | |||
Gross profit (loss) | 114,319 | 129,004 | 198,266 | ||||
Selling, general, and administrative expenses | 130,942 | 137,697 | 134,789 | ||||
Research and development expenses | 9,013 | 9,859 | 11,146 | ||||
Royalty Expense | 9,715 | 9,880 | 10,087 | ||||
Income (loss) from operations | (35,351) | (28,432) | 42,244 | ||||
Interest expense | (30,554) | (32,004) | (28,349) | ||||
Loss on senior note repurchase | 8,657 | 0 | 0 | ||||
Intercompany interest income (expense) | 0 | ||||||
Foreign exchange (loss) gain | (11,025) | 3,999 | (11,179) | ||||
Other income (expense) | 18,799 | 8,393 | 17,091 | ||||
Loss before income taxes | (58,131) | (48,044) | 19,807 | ||||
Provision (benefit) for income tax | 6,946 | 3,475 | 6,762 | ||||
Equity in (loss) earnings of subsidiaries | 0 | ||||||
Net income (loss) | (65,077) | (51,519) | 13,045 | ||||
Net loss attributable to noncontrolling interests | (4,689) | (3,094) | (3,042) | ||||
Net income (loss) attributable to Titan | (60,388) | (48,425) | 16,087 | ||||
Comprehensive Income Statement [Abstract] | |||||||
Net income (loss) | (65,077) | (51,519) | 13,045 | ||||
Currency translation adjustment | (4,140) | (8,949) | (41,966) | ||||
Pension liability adjustments, net of tax | 3,454 | 6,566 | (3,650) | ||||
Comprehensive income (loss) | (66,176) | (53,902) | (32,571) | ||||
Net comprehensive income (loss) attributable to noncontrolling interests | (7,185) | (1,533) | (6,488) | ||||
Comprehensive income (loss) attributable to Titan | (58,991) | (52,369) | (26,083) | ||||
Statement of Financial Position [Abstract] | |||||||
Cash and cash equivalents | 117,431 | 66,799 | 81,685 | $ 143,570 | |||
Accounts Receivable | 193,014 | 185,238 | |||||
Inventory | 293,679 | 333,356 | |||||
Prepaid and other current assets | 54,475 | 58,869 | |||||
Total current assets | 658,599 | 651,465 | |||||
Property, plant, and equipment, net | 319,854 | 367,595 | |||||
Investment in subsidiaries | 0 | ||||||
Other long-term assets | 26,484 | 69,002 | |||||
Assets, Noncurrent | 53,431 | ||||||
Assets | 1,031,884 | 1,114,307 | 1,251,256 | ||||
Short-term debt | 31,119 | 61,253 | |||||
Accounts payable | 167,210 | 158,647 | |||||
Other current liabilities | 131,382 | 107,253 | |||||
Current liabilities | 329,711 | 327,153 | |||||
Long-term debt | 433,584 | 438,469 | |||||
Other long-term liabilities | 67,324 | ||||||
Intercompany accounts | 0 | ||||||
Redeemable noncontrolling interest | 25,000 | 25,000 | 119,813 | ||||
Titan stockholders' equity | 179,264 | 234,851 | |||||
Noncontrolling interests | (2,999) | 4,137 | |||||
Liabilities and Equity | 1,031,884 | 1,114,307 | |||||
Statement of Cash Flows [Abstract] | |||||||
Net Cash provided by (used for) operating Activities | 57,229 | 45,442 | (36,176) | ||||
Capital expenditures | (21,680) | (36,414) | (39,000) | ||||
Other, net | (13,392) | 3,476 | (2,069) | ||||
Net Cash provided by (used for) investing Activities | 33,221 | (92,591) | (36,931) | ||||
Proceeds from borrowings | 91,639 | 134,227 | 57,294 | ||||
Payment on debt | (126,393) | (100,901) | (38,557) | ||||
Dividends paid | (603) | (1,204) | (1,201) | ||||
Net Cash provided by (used for) financing Activities | (38,565) | 32,122 | 17,536 | ||||
Effect of Exchange Rate on Cash and Cash Equivalents | (1,253) | 141 | (6,314) | ||||
Net increase in cash and cash equivalents | 50,632 | (14,886) | (61,885) | ||||
Payment related to redeemable noncontrolling interest agreement | $ 30,700 | $ 30,700 | $ 16,000 | 0 | 71,722 | 0 | |
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Tax | (413) | 0 | $ 0 | ||||
Parent Company [Member] | |||||||
Condensed Financial Statements, Captions [Line Items] | |||||||
Proceeds from Sale of Equity Method Investments | 0 | ||||||
Income Statement [Abstract] | |||||||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | ||||||
Cost of Goods and Services Sold | 821 | ||||||
Asset impairment | 1,007 | ||||||
Gross profit (loss) | (1,828) | ||||||
Selling, general, and administrative expenses | 24,291 | ||||||
Research and development expenses | 859 | ||||||
Royalty Expense | 2,844 | ||||||
Income (loss) from operations | (29,822) | ||||||
Interest expense | (28,144) | ||||||
Intercompany interest income (expense) | 2,071 | ||||||
Foreign exchange (loss) gain | 0 | ||||||
Other income (expense) | 865 | ||||||
Loss before income taxes | (55,030) | ||||||
Provision (benefit) for income tax | (3,509) | ||||||
Equity in (loss) earnings of subsidiaries | (13,556) | ||||||
Net income (loss) | (65,077) | ||||||
Net loss attributable to noncontrolling interests | 0 | ||||||
Net income (loss) attributable to Titan | (65,077) | ||||||
Comprehensive Income Statement [Abstract] | |||||||
Net income (loss) | (65,077) | ||||||
Currency translation adjustment | (4,140) | ||||||
Pension liability adjustments, net of tax | 3,454 | ||||||
Comprehensive income (loss) | (66,176) | ||||||
Net comprehensive income (loss) attributable to noncontrolling interests | 0 | ||||||
Comprehensive income (loss) attributable to Titan | (66,176) | ||||||
Statement of Financial Position [Abstract] | |||||||
Cash and cash equivalents | 10,998 | 2,843 | |||||
Accounts Receivable | 0 | ||||||
Inventory | 0 | ||||||
Prepaid and other current assets | 3,955 | ||||||
Total current assets | 14,953 | ||||||
Property, plant, and equipment, net | 2,117 | ||||||
Investment in subsidiaries | 610,405 | ||||||
Other long-term assets | 1,865 | ||||||
Assets | 629,340 | ||||||
Short-term debt | 0 | ||||||
Accounts payable | 3,409 | ||||||
Other current liabilities | 21,158 | ||||||
Current liabilities | 24,567 | ||||||
Long-term debt | 396,876 | ||||||
Other long-term liabilities | 791 | ||||||
Intercompany accounts | (13,127) | ||||||
Redeemable noncontrolling interest | 0 | ||||||
Titan stockholders' equity | 220,233 | ||||||
Noncontrolling interests | 0 | ||||||
Liabilities and Equity | 629,340 | ||||||
Statement of Cash Flows [Abstract] | |||||||
Net Cash provided by (used for) operating Activities | 46,306 | ||||||
Capital expenditures | (183) | ||||||
Other, net | (283) | ||||||
Net Cash provided by (used for) investing Activities | 100 | ||||||
Proceeds from borrowings | (32,264) | ||||||
Payment on debt | (67,348) | ||||||
Dividends paid | (603) | ||||||
Net Cash provided by (used for) financing Activities | (38,251) | ||||||
Effect of Exchange Rate on Cash and Cash Equivalents | 0 | ||||||
Net increase in cash and cash equivalents | 8,155 | ||||||
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Tax | (413) | ||||||
Guarantor Subsidiaries [Member] | |||||||
Condensed Financial Statements, Captions [Line Items] | |||||||
Proceeds from Sale of Equity Method Investments | 0 | ||||||
Income Statement [Abstract] | |||||||
Revenue from Contract with Customer, Excluding Assessed Tax | 526,499 | ||||||
Cost of Goods and Services Sold | 474,191 | ||||||
Asset impairment | 0 | ||||||
Gross profit (loss) | 52,308 | ||||||
Selling, general, and administrative expenses | 10,682 | ||||||
Research and development expenses | 2,885 | ||||||
Royalty Expense | 3,473 | ||||||
Income (loss) from operations | 35,268 | ||||||
Interest expense | (12) | ||||||
Intercompany interest income (expense) | 2,225 | ||||||
Foreign exchange (loss) gain | (905) | ||||||
Other income (expense) | (248) | ||||||
Loss before income taxes | 36,328 | ||||||
Provision (benefit) for income tax | 334 | ||||||
Equity in (loss) earnings of subsidiaries | 0 | ||||||
Net income (loss) | 35,994 | ||||||
Net loss attributable to noncontrolling interests | 0 | ||||||
Net income (loss) attributable to Titan | 35,994 | ||||||
Comprehensive Income Statement [Abstract] | |||||||
Net income (loss) | 35,994 | ||||||
Currency translation adjustment | 0 | ||||||
Pension liability adjustments, net of tax | 2,668 | ||||||
Comprehensive income (loss) | 38,662 | ||||||
Net comprehensive income (loss) attributable to noncontrolling interests | 0 | ||||||
Comprehensive income (loss) attributable to Titan | 38,662 | ||||||
Statement of Financial Position [Abstract] | |||||||
Cash and cash equivalents | 4 | 4 | |||||
Accounts Receivable | 1 | ||||||
Inventory | 31,927 | ||||||
Prepaid and other current assets | 16,842 | ||||||
Total current assets | 48,774 | ||||||
Property, plant, and equipment, net | 83,321 | ||||||
Investment in subsidiaries | 0 | ||||||
Other long-term assets | 5,503 | ||||||
Assets | 137,598 | ||||||
Short-term debt | 0 | ||||||
Accounts payable | 19,584 | ||||||
Other current liabilities | 23,091 | ||||||
Current liabilities | 42,675 | ||||||
Long-term debt | 0 | ||||||
Other long-term liabilities | 14,359 | ||||||
Intercompany accounts | (447,970) | ||||||
Redeemable noncontrolling interest | 0 | ||||||
Titan stockholders' equity | 528,534 | ||||||
Noncontrolling interests | 0 | ||||||
Liabilities and Equity | 137,598 | ||||||
Statement of Cash Flows [Abstract] | |||||||
Net Cash provided by (used for) operating Activities | 5,866 | ||||||
Capital expenditures | (6,050) | ||||||
Other, net | 0 | ||||||
Net Cash provided by (used for) investing Activities | (6,050) | ||||||
Proceeds from borrowings | (300) | ||||||
Payment on debt | (98) | ||||||
Dividends paid | 0 | ||||||
Net Cash provided by (used for) financing Activities | 184 | ||||||
Effect of Exchange Rate on Cash and Cash Equivalents | 0 | ||||||
Net increase in cash and cash equivalents | 0 | ||||||
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Tax | 0 | ||||||
Non-Guarantor Subsidiaries [Member] | |||||||
Condensed Financial Statements, Captions [Line Items] | |||||||
Proceeds from Sale of Equity Method Investments | 32,852 | ||||||
Income Statement [Abstract] | |||||||
Revenue from Contract with Customer, Excluding Assessed Tax | 1,261,019 | ||||||
Cost of Goods and Services Sold | 1,183,387 | ||||||
Asset impairment | 13,793 | ||||||
Gross profit (loss) | 63,839 | ||||||
Selling, general, and administrative expenses | 95,969 | ||||||
Research and development expenses | 5,269 | ||||||
Royalty Expense | 3,398 | ||||||
Income (loss) from operations | (40,797) | ||||||
Interest expense | (2,398) | ||||||
Intercompany interest income (expense) | (4,296) | ||||||
Foreign exchange (loss) gain | (10,120) | ||||||
Other income (expense) | 18,182 | ||||||
Loss before income taxes | (39,429) | ||||||
Provision (benefit) for income tax | 10,121 | ||||||
Equity in (loss) earnings of subsidiaries | 18,097 | ||||||
Net income (loss) | (31,453) | ||||||
Net loss attributable to noncontrolling interests | (4,689) | ||||||
Net income (loss) attributable to Titan | (26,764) | ||||||
Comprehensive Income Statement [Abstract] | |||||||
Net income (loss) | (31,453) | ||||||
Currency translation adjustment | (4,140) | ||||||
Pension liability adjustments, net of tax | 786 | ||||||
Comprehensive income (loss) | (35,220) | ||||||
Net comprehensive income (loss) attributable to noncontrolling interests | (7,185) | ||||||
Comprehensive income (loss) attributable to Titan | (28,035) | ||||||
Statement of Financial Position [Abstract] | |||||||
Cash and cash equivalents | 106,429 | $ 63,952 | |||||
Accounts Receivable | 193,013 | ||||||
Inventory | 261,752 | ||||||
Prepaid and other current assets | 33,678 | ||||||
Total current assets | 594,872 | ||||||
Property, plant, and equipment, net | 234,416 | ||||||
Investment in subsidiaries | 71,326 | ||||||
Other long-term assets | 46,063 | ||||||
Assets | 946,677 | ||||||
Short-term debt | 31,119 | ||||||
Accounts payable | 144,217 | ||||||
Other current liabilities | 87,133 | ||||||
Current liabilities | 262,469 | ||||||
Long-term debt | 36,708 | ||||||
Other long-term liabilities | 52,174 | ||||||
Intercompany accounts | 461,097 | ||||||
Redeemable noncontrolling interest | 25,000 | ||||||
Titan stockholders' equity | 112,228 | ||||||
Noncontrolling interests | (2,999) | ||||||
Liabilities and Equity | 946,677 | ||||||
Statement of Cash Flows [Abstract] | |||||||
Net Cash provided by (used for) operating Activities | 5,057 | ||||||
Capital expenditures | (15,447) | ||||||
Other, net | (13,109) | ||||||
Net Cash provided by (used for) investing Activities | 39,171 | ||||||
Proceeds from borrowings | 59,075 | ||||||
Payment on debt | (58,947) | ||||||
Dividends paid | 0 | ||||||
Net Cash provided by (used for) financing Activities | (498) | ||||||
Effect of Exchange Rate on Cash and Cash Equivalents | (1,253) | ||||||
Net increase in cash and cash equivalents | 42,477 | ||||||
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Tax | (413) | ||||||
Consolidation, Eliminations [Member] | |||||||
Income Statement [Abstract] | |||||||
Asset impairment | 0 | ||||||
Statement of Cash Flows [Abstract] | |||||||
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Tax | 413 | ||||||
Consolidation, Eliminations [Member] | |||||||
Income Statement [Abstract] | |||||||
Revenue from Contract with Customer, Excluding Assessed Tax | (528,205) | ||||||
Cost of Goods and Services Sold | (528,205) | ||||||
Gross profit (loss) | 0 | ||||||
Selling, general, and administrative expenses | 0 | ||||||
Research and development expenses | 0 | ||||||
Royalty Expense | 0 | ||||||
Income (loss) from operations | 0 | ||||||
Interest expense | 0 | ||||||
Intercompany interest income (expense) | 0 | ||||||
Foreign exchange (loss) gain | 0 | ||||||
Other income (expense) | 0 | ||||||
Loss before income taxes | 0 | ||||||
Provision (benefit) for income tax | 0 | ||||||
Equity in (loss) earnings of subsidiaries | (4,541) | ||||||
Net income (loss) | (4,541) | ||||||
Net loss attributable to noncontrolling interests | 0 | ||||||
Net income (loss) attributable to Titan | (4,541) | ||||||
Comprehensive Income Statement [Abstract] | |||||||
Net income (loss) | (4,541) | ||||||
Currency translation adjustment | 4,140 | ||||||
Pension liability adjustments, net of tax | (3,454) | ||||||
Comprehensive income (loss) | (3,442) | ||||||
Net comprehensive income (loss) attributable to noncontrolling interests | 0 | ||||||
Comprehensive income (loss) attributable to Titan | (3,442) | ||||||
Statement of Financial Position [Abstract] | |||||||
Cash and cash equivalents | 0 | ||||||
Accounts Receivable | 0 | ||||||
Inventory | 0 | ||||||
Prepaid and other current assets | 0 | ||||||
Total current assets | 0 | ||||||
Property, plant, and equipment, net | 0 | ||||||
Investment in subsidiaries | (681,731) | ||||||
Other long-term assets | 0 | ||||||
Assets | (681,731) | ||||||
Short-term debt | 0 | ||||||
Accounts payable | 0 | ||||||
Other current liabilities | 0 | ||||||
Current liabilities | 0 | ||||||
Long-term debt | 0 | ||||||
Other long-term liabilities | 0 | ||||||
Intercompany accounts | 0 | ||||||
Redeemable noncontrolling interest | 0 | ||||||
Titan stockholders' equity | (681,731) | ||||||
Noncontrolling interests | 0 | ||||||
Liabilities and Equity | $ (681,731) |
SCHEDULE II - VALUATION RESER_2
SCHEDULE II - VALUATION RESERVES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |||
Balance at beginning of year | $ 3,714 | $ 3,404 | |
Accounts Receivable, Credit Loss Expense (Reversal) | 815 | 821 | $ 541 |
SEC Schedule, 12-09, Valuation Allowances and Reserves, Deduction | (747) | (511) | (111) |
Balance at end of year | $ 3,782 | $ 3,714 | $ 3,404 |
Uncategorized Items - twi-20201
Label | Element | Value |
Common Stock [Member] | ||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | us-gaap_StockIssuedDuringPeriodSharesRestrictedStockAwardGross | 440,558 |