Document and Entity Information
Document and Entity Information Document - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Feb. 20, 2024 | Jun. 30, 2023 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
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 | ||
City Area Code | 630 | ||
City Area Code | 377-0486 | ||
Entity Address, State or Province | IL | ||
Entity Address, City or Town | West Chicago, | ||
Entity Address, Address Line One | 1525 Kautz Road, Suite 600, | ||
Entity Address, Postal Zip Code | 60185 | ||
Title of 12(b) Security | Common stock, $0.0001 par value | ||
Trading Symbol | TWI | ||
Security Exchange Name | NYSE | ||
Entity Interactive Data Current | Yes | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 720,000,000 | ||
Entity Common Stock, Shares Outstanding | 60,645,378 | ||
Amendment Flag | false | ||
Entity Central Index Key | 0000899751 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
ICFR Auditor Attestation Flag | true | ||
Auditor Firm ID | 248 | ||
Auditor Name | Grant Thornton LLP | ||
Auditor Location | Southfield, Michigan | ||
Related Party Transaction, Purchases from Related Party | Large Accelerated Filer | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Document Period End Date | Dec. 31, 2023 | ||
Entity Well-known Seasoned Issuer | No | ||
Current Fiscal Year End Date | --12-31 | ||
Document Financial Statement Error Correction [Flag] | false |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Net sales | $ 1,821,800 | $ 2,169,380 | $ 1,780,215 |
Cost of sales | 1,515,951 | 1,808,670 | 1,542,673 |
Gross profit | 305,849 | 360,710 | 237,542 |
Selling, general and administrative expenses | 134,938 | 132,792 | 131,772 |
Research and development expenses | 12,539 | 10,404 | 10,104 |
Royalty expense | 9,645 | 11,712 | 10,491 |
Income from operations | 148,727 | 205,802 | 85,175 |
Interest expense, net | (18,785) | (29,796) | (32,221) |
Loss on senior note repurchase | 0 | 0 | (16,020) |
Foreign exchange (loss) gain | (22,822) | 927 | 12,020 |
Other income | 2,628 | 25,420 | 2,086 |
Income before income taxes | 109,748 | 202,353 | 51,040 |
Provision for income taxes | 26,042 | 23,167 | 1,149 |
Net income | 83,706 | 179,186 | 49,891 |
Net income attributable to noncontrolling interests | (4,946) | (2,884) | (305) |
Net income applicable to common shareholders | $ 78,760 | $ 176,302 | $ 49,586 |
Earnings (loss) per common share: | |||
Basic | $ 1.26 | $ 2.80 | $ 0.80 |
Diluted | $ 1.25 | $ 2.77 | $ 0.79 |
Average common shares outstanding: | |||
Basic | 62,452 | 63,040 | 62,100 |
Diluted | 62,961 | 63,691 | 62,685 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Net income | $ 83,706 | $ 179,186 | $ 49,891 |
Derivative, Gain on Derivative | 1,263 | 374 | |
Derivative, Loss on Derivative | (484) | ||
Currency translation adjustment, net | 22,267 | (6,507) | (42,338) |
Pension liability adjustments, net of tax of $(2,663), $(383), and $39, respectively | 6,939 | 1,115 | 12,308 |
Comprehensive income | 112,428 | 175,057 | 20,235 |
Net comprehensive income (loss) attributable to noncontrolling interests | 956 | 4,030 | (125) |
Comprehensive income attributable to Titan | $ 111,472 | $ 171,027 | $ 20,360 |
Statement of Comprehensive Inco
Statement of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | |||
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, Tax | $ (2,663) | $ (383) | $ 39 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Current assets | ||
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents, Including Disposal Group and Discontinued Operations | $ 220,251 | $ 159,577 |
Accounts receivable, net | 219,145 | 266,758 |
Inventories | 365,156 | 397,223 |
Prepaid and other current assets | 72,229 | 86,070 |
Total current assets | 876,781 | 909,628 |
Property, plant and equipment, net | 321,694 | 296,605 |
Operating Lease, Right-of-Use Asset | 11,955 | 8,932 |
Deferred income taxes | 38,033 | 38,736 |
Other long-term assets | 40,782 | 30,729 |
Total assets | 1,289,245 | 1,284,630 |
Current liabilities | ||
Short-term debt | 16,913 | 30,857 |
Accounts payable | 201,201 | 263,376 |
Other current liabilities | 154,261 | 151,928 |
Total current liabilities | 372,375 | 446,161 |
Long-term debt | 409,178 | 414,761 |
Deferred income taxes | 2,234 | 3,425 |
Other long-term liabilities | 38,043 | 37,145 |
Total liabilities | 821,830 | 901,492 |
Titan stockholders' equity | ||
Common stock ($0.0001 par, 120,000,000 shares authorized, 66,525,269 issued at December 2023 and 66,525,269 at December 2022) | 0 | 0 |
Additional paid-in capital | 569,065 | 565,546 |
Retained earnings | 169,623 | 90,863 |
Treasury stock (at cost, 5,809,414 shares at December 2023 and 3,681,308 shares at December 2022) | (52,585) | (23,418) |
Accumulated other comprehensive loss | (219,043) | (251,755) |
Total Titan stockholders’ equity | 467,060 | 381,236 |
Noncontrolling interests | 355 | 1,902 |
Total equity | 467,415 | 383,138 |
Total liabilities and equity | 1,289,245 | 1,284,630 |
Accounts Receivable, Allowance for Credit Loss, Current | $ 5,340 | $ 6,170 |
Common Stock, Shares, Issued | 66,525,269 | 66,525,269 |
Common Stock, No Par Value | $ 0.0001 | |
Common Stock, Shares Authorized | 120,000,000 | |
Treasury Stock, Shares | 5,809,414 | 3,681,308 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional paid-in capital [Member] | Retained earnings [Member] | Treasury Stock, Common | Accumulated other comprehensive income (loss) [Member] | Parent [Member] | Noncontrolling interest [Member] |
Balance, Beginning (in shares) at Dec. 31, 2020 | 61,376,981 | |||||||
Balance, Beginning at Dec. 31, 2020 | $ 176,265 | $ 0 | $ 532,742 | $ (135,025) | $ (1,199) | $ (217,254) | $ 179,264 | $ (2,999) |
Net income | 49,891 | 49,586 | 49,586 | 305 | ||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, before Tax | (41,908) | |||||||
CTA, net of tax | (42,338) | (41,908) | (430) | |||||
Temporary Equity, Foreign Currency Translation Adjustments | (42,338) | |||||||
Pension liability adjustments, net of tax of $(2,663), $(383), and $39, respectively | 12,308 | (12,308) | 12,308 | |||||
Derivative, Gain on Derivative | 374 | 374 | 374 | |||||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 827,277 | |||||||
Stock-based compensation | 3,441 | 3,363 | 78 | 3,441 | ||||
Issuance of treasury stock under 401(k) plan (in shares) | 175,267 | |||||||
Issuance of treasury stock under 401(k) plan | 1,235 | 1,235 | 1,235 | |||||
Stock Issued During Period, Shares, Other | 4,032,259 | |||||||
Stock Issued During Period, Value, Other | 25,000 | 25,000 | 25,000 | |||||
Variable Interest Entity, Members Draw | 996 | 0 | 996 | |||||
Balance, Ending (in shares) at Dec. 31, 2021 | 66,411,784 | |||||||
Balance, Ending at Dec. 31, 2021 | $ 227,172 | $ 0 | 562,340 | (85,439) | (1,121) | (246,480) | 229,300 | (2,128) |
Restricted stock awards (in shares) | 438,195 | |||||||
Net income | $ 179,186 | 176,302 | 176,302 | 2,884 | ||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, before Tax | (7,653) | |||||||
CTA, net of tax | (6,507) | (7,653) | 1,146 | |||||
Temporary Equity, Foreign Currency Translation Adjustments | (6,507) | |||||||
Pension liability adjustments, net of tax of $(2,663), $(383), and $39, respectively | 1,115 | (1,115) | 1,115 | |||||
Derivative, Gain on Derivative | 1,263 | 1,263 | 1,263 | |||||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 339,791 | |||||||
Stock-based compensation | 4,282 | 2,151 | 2,131 | 4,282 | ||||
Issuance of treasury stock under 401(k) plan (in shares) | 124,645 | |||||||
Issuance of treasury stock under 401(k) plan | $ 1,627 | 1,055 | 572 | 1,627 | ||||
Treasury Stock, Shares, Acquired | (4,032,259) | (4,032,259) | ||||||
Treasury Stock, Value, Acquired, Cost Method | $ (25,000) | (25,000) | (25,000) | |||||
Balance, Ending (in shares) at Dec. 31, 2022 | 62,843,961 | |||||||
Balance, Ending at Dec. 31, 2022 | $ 383,138 | $ 0 | 565,546 | 90,863 | (23,418) | (251,755) | 381,236 | 1,902 |
Restricted stock awards (in shares) | 552,992 | |||||||
Titan stockholders' equity | $ 381,236 | |||||||
Retained earnings | 90,863 | |||||||
Net income | 83,706 | 78,760 | 78,760 | 4,946 | ||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, before Tax | 26,257 | |||||||
CTA, net of tax | 22,267 | 26,257 | (3,990) | |||||
Temporary Equity, Foreign Currency Translation Adjustments | 22,267 | |||||||
Pension liability adjustments, net of tax of $(2,663), $(383), and $39, respectively | 6,939 | (6,939) | 6,939 | |||||
Derivative, Loss on Derivative | (484) | (484) | (484) | |||||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 381,241 | |||||||
Stock-based compensation | 5,235 | 2,819 | 2,416 | 5,235 | ||||
Issuance of treasury stock under 401(k) plan (in shares) | 144,439 | |||||||
Issuance of treasury stock under 401(k) plan | $ 1,776 | 780 | 996 | 1,776 | ||||
Treasury Stock, Shares, Acquired | (2,653,786) | (2,653,786) | ||||||
Treasury Stock, Value, Acquired, Cost Method | $ (32,579) | (32,579) | (32,579) | |||||
Variable Interest Entity, Members Draw | (2,135) | 0 | (2,135) | |||||
Noncontrolling Interest, Period Increase (Decrease) | (448) | (80) | (80) | (368) | ||||
Balance, Ending (in shares) at Dec. 31, 2023 | 60,715,855 | |||||||
Balance, Ending at Dec. 31, 2023 | $ 467,415 | $ 0 | $ 569,065 | $ 169,623 | $ (52,585) | $ (219,043) | $ 467,060 | $ 355 |
Restricted stock awards (in shares) | 571,530 | |||||||
Exercise of stock options (in shares) | 0 | |||||||
Titan stockholders' equity | $ 467,060 | |||||||
Retained earnings | $ 169,623 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash flows from operating activities: | |||
Net income | $ 83,706 | $ 179,186 | $ 49,891 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 42,434 | 42,747 | 47,991 |
Loss on sale of the Australian wheel business | 0 | 10,890 | 0 |
Loss on senior note repurchase | 0 | 0 | 16,020 |
Income Tax Credits and Adjustments | (3,096) | (32,043) | 0 |
Gain on fixed asset and investment sale | 644 | 216 | 569 |
Stock-based compensation | 5,235 | 4,282 | 3,441 |
Issuance of stock under 401(k) plan | 1,776 | 1,627 | 1,235 |
Foreign currency loss (gain) | 19,734 | 2,661 | (8,930) |
(Increase) decrease in assets: | |||
Accounts receivable | 42,871 | (27,201) | (74,736) |
Inventories | 31,635 | (19,598) | (112,850) |
Prepaid and other current assets | 17,596 | 11,366 | (15,671) |
Other assets | (2) | (1,288) | (5,298) |
Increase (decrease) in liabilities: | |||
Accounts payable | (62,725) | (7,754) | 121,189 |
Other current liabilities | 872 | 18,888 | 14,781 |
Other liabilities | 2,039 | 516 | (11,588) |
Net cash provided by (used for) operating activities | 179,350 | 160,678 | 10,726 |
Cash flows from investing activities: | |||
Capital expenditures | (60,799) | (46,974) | (38,802) |
Proceeds from sale of investments | 2,085 | 9,293 | 0 |
Other investing activities | 1,791 | 930 | 1,203 |
Net cash provided by (used for) investing activities | (56,923) | (36,751) | (37,599) |
Cash flows from financing activities: | |||
Proceeds from borrowings | 6,666 | 88,940 | 497,149 |
Repurchase of senior secured notes | 0 | 0 | 413,000 |
Payment on debt | (27,608) | (124,739) | (69,182) |
Repurchase of common stock | (32,579) | (25,000) | 0 |
Proceeds from (Payments for) Other Financing Activities | (2,495) | (511) | (1,021) |
Net cash used for financing activities | (56,016) | (61,310) | 13,946 |
Effect of Exchange Rate on Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents, Continuing Operations | (5,737) | (1,148) | (6,396) |
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect, Total | 60,674 | 61,469 | (19,323) |
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents, Including Disposal Group and Discontinued Operations | 220,251 | 159,577 | 98,108 |
Supplemental Cash Flow Information [Abstract] | |||
Interest Paid, Excluding Capitalized Interest, Operating Activities | 30,269 | 31,604 | 34,578 |
Income taxes paid, net of refunds received | 21,801 | 24,105 | 16,263 |
Cash Flow, Noncash Investing and Financing Activities Disclosure [Abstract] | |||
Deferred Income Tax Expense (Benefit) | $ (2,081) | $ (23,385) | $ (14,180) |
DESCRIPTION OF BUSINESS AND SIG
DESCRIPTION OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2023 | |
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. 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 $186.1 million and $132.8 million of cash in foreign bank accounts at December 31, 2023 and 2022, respectively. The Company's cash in its foreign bank accounts is not fully insured. Accounts receivable and allowance for credit loss The Company carries its accounts receivable at their face amounts less an allowance for credit loss. An allowance for credit loss is recorded based upon the best estimate of credit losses in accounts receivable. In order to monitor credit risks associated with our customer base, credit worthiness of our existing customer base is reviewed on a periodic basis. At the end of each reporting period, the allowance for credit loss is reviewed relative to management's collectability assessment and adjusted if deemed necessary. The factors considered in this review include known bad debt risks and past loss history. Actual collection experience may differ from the current estimate of net receivables. Concentration of Credit Risk Titan’s 10 largest customers accounted for 40% of net sales for the year ended December 31, 2023, and 43% of net sales for the year ended December 31, 2022. Net sales to Deere & Company in Titan's agricultural, earthmoving/construction, and consumer segments combined represented 13% and 15% of the Company's consolidated net sales for the years ended December 31, 2023 and 2022, respectively. No other customer accounted for 10% or more of Titan's net sales in 2023 and 2022. 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. Impairment of Long-Lived Assets The Company reviews fixed assets to assess recoverability from future operations whenever events and circumstances indicate that the carrying values may not be recoverable. Factors that could result in an impairment review include, but are not limited to, a current period cash flow loss combined with a history of cash flow losses, current cash flows that may be insufficient to recover the investment in the property over the remaining useful life, or a projection that demonstrates continuing losses associated with the use of a long-lived asset, significant changes in the manner of use of the assets, or significant changes in business strategies. Impairment losses are recognized in operating results when expected undiscounted cash flows are less than the carrying value of the asset. Impairment losses 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. 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. Our 7.0% senior secured notes due 2028 (the senior secured notes due 2028) were carried at cost of $396.3 million at December 31, 2023. The fair value of the senior secured notes due 2028 at December 31, 2023, as obtained through an independent pricing source, was approximately $401.4 million. Investments 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 carrying value of these investments was $7.1 million and $6.9 million as of December 31, 2023, and December 31, 2022, respectively. 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. Russia-Ukraine Military Conflict In February 2022, in response to the military conflict between Russia and Ukraine, the United States, other North Atlantic Treaty Organization member states, as well as non-member states, announced targeted economic sanctions on Russia, certain Russian citizens and enterprises. The continuation of the conflict has triggered additional economic and other sanctions enacted by the United States and other countries throughout the world. The Company currently owns 64.3% of the Voltyre-Prom, a leading producer of agricultural and industrial tires in Volgograd, Russia, which represents approximately 7% of consolidated assets of Titan as of both December 31, 2023 and December 31, 2022. The Russian operations represent approximately 6% of consolidated global sales for both years ended December 31, 2023 and December 31, 2022. The impact of the military conflict between Russia and Ukraine has not had a significant impact on global operations. The Company continues to monitor the potential impacts on the business including the increased cost of energy in Europe and the ancillary impacts that the military conflict could have on other global operations. Sale of Australian wheel business On March 29, 2022, the Company entered into a definitive agreement (the Agreement) for the sale of its Australian wheel business, to OTR Tyres, a leading Australian tire, wheel and service provider. The closing date of the transaction was March 31, 2022. The Agreement contains customary representations, warranties and covenants for transactions of this type. The sale included gross proceeds and cash repatriated of approximately $17.5 million, and the assumption by OTR Tyres of all liabilities, including employee and lease obligations. Refer to footnote 16 for additional information on the loss on sale of the Australian wheel business. Foreign currency translation The financial statements of the Company’s foreign subsidiaries are translated to United States dollars. 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. Hyperinflation in Argentina and Turkey In July 2018 and March 2022, the three-year cumulative rate of inflation for consumer prices and wholesale prices reached a level in excess of 100% for Argentina and Turkey, respectively. As a result, in accordance with ASC 830 Foreign Currency Matters, Argentina and Turkey were considered hyperinflationary economies and the Company applied the standard for the year ended December 31, 2023. The impacts of hyperinflation in Argentina and Turkey were not material in the prior periods since Argentina and Turkey became hyperinflationary economies. In accordance with ASC 830, the Argentine and Turkish subsidiary's nonmonetary assets and liabilities, as well as related expenses such as depreciation, are remeasured into US dollars by applying the foreign exchange rate as of the date each respective entity became hyperinflationary. Monetary assets and liabilities are remeasured into US dollars using the current exchange rates as of December 31, 2023. Any resulting gains or losses on these monetary assets and liabilities are reported in net income within the consolidated statements of operations. Upon the application of ASC 830 during the year ended December 31, 2023, the Company recognized a net monetary loss of $15.5 million recorded in foreign exchange (loss) gain in the consolidated statements of operations. Of the $15.5 million recorded, $7.3 million relates to the foreign exchange loss with the offset to accumulated other comprehensive income (loss) for the prior period's impact of the application of hyperinflation accounting in Argentina and Turkey. The Company recorded the prior period impact in the current year financial statements as the impact of this out of period adjustment, individually and in the aggregate, was not material to any previously reported quarterly or annual financial statements and is not material to the 2023 annual financial statements. Revenue recognition The Company derives revenues primarily from the sale of wheels, tires, tires/wheels assemblies, and undercarriage systems and components. The Company follows the five-step model to determine when to recognize revenue: (1) identify the contract(s) with the customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; (5) recognize revenue when the entity satisfies a performance obligation. In most arrangements within the Company, contracts with the customer are identified through the receipt of a purchase order, which also define the terms of the contract including the performance obligations or products to be sold, and specific transaction prices associated with the products. In some other arrangements, a master agreement exists that defines pertinent contract terms such as products and price. Purchase orders are then issued under the master agreement for specific quantities of products, which are fulfilled at the specified price at a given point in time. Generally, the Company’s performance obligations under the contracts are satisfied when there is transfer of control of the products to our customers, which is primarily upon shipment or, in certain instances, upon delivery of the products to the named customer location. The payment terms and conditions in our contracts vary and are customary within the geographies that we serve. As the Company’s standard payment terms are less than one year, the Company has elected the practical expedient under ASC 606-10-32-18 to not assess whether a contract has a significant financing component. Revenues are stated net of returns, discounts and allowances, which are determined based on historical experience. Customer discounts and allowances, consisting primarily of volume discounts and other short-term incentive programs, are recorded as a reduction of revenue at the time of sale because these allowances reflect a reduction in the transaction price. Costs to obtain or fulfill a contract with a customer, such as sales commissions to agents and internal sales employees, are recognized as an expense when incurred since the amortization period would be one year or less. Shipping and handling costs are included as a component of cost of sales. Revenue derived from shipping and handling costs billed to customers is included in 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 (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 $12.5 million, $10.4 million, and $10.1 million for the years ended December 31, 2023, 2022, and 2021, respectively. Advertising Advertising expenses are included in SG&A expense and are expensed as incurred. Advertising costs were approximately $3.3 million, $3.0 million and $2.7 million for the years ended December 31, 2023, 2022, and 2021, 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 8 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 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 571,530, 552,992 and 438,195 restricted stock shares in 2023, 2022 and 2021, respectively. See Note 19 for additional information. 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. Supplier financing program A subsidiary of Titan participates in supplier financing programs pursuant to credit agreements between certain suppliers and financial institutions. The program enables those suppliers to receive payment from participating financial institutions prior to the payment date specified in the terms between Titan and the supplier. Titan does not incur annual service fees associated with its enrollment in the supplier financing program. The transactions are at the sole discretion of both the suppliers and the financial institution, and Titan is not a party to the agreement and has no economic interest in the supplier's decision to receive payment prior to the payment date. The terms between Titan and a supplier, including the amount due and scheduled payment dates, are not impacted by a supplier's participation in the program. Amounts due to suppliers who participate in the program are included in the accounts payable line item in Titan's Consolidated Balance Sheets and Titan’s payments made under the program are reflected in cash flows from operating activities in Titan's Consolidated Statements of Cash Flows. For suppliers who participate in a supplier financing program, Titan will pay the financial institution directly rather than the supplier. The confirmed obligations under the supplier financing programs included in the accounts payable line item in Titan's Consolidated Balance Sheet were $7.4 million at December 31, 2023, and $11.8 million at December 31, 2022. Adoption of new accounting standards In September 2022, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2022-04, Liabilities—Supplier Finance Programs (Subtopic 405-50) Disclosure of Supplier Finance Program Obligations ("ASU No. 2022-04"). The ASU requires that a buyer in a supplier finance program disclose sufficient information about the program to allow a user of financial statements to understand the program’s nature, activity during the period, and potential magnitude. The amendments in this ASU will be applied retrospectively to each period in which a balance sheet is presented, with the exception of a new requirement to disclose a rollforward of program activity, which will be applied prospectively. The amendments in the ASU are effective for fiscal years beginning after December 15, 2022, with early adoption permitted. The Company adopted the impact of this ASU effective March 31, 2023 and incorporated the required disclosures within Note 1 to condensed consolidated financial statements. New accounting pronouncements to be adopted in future periods In November 2023, the FASB issued ASU 2023-07, Improvements to Reportable Segment Disclosures, which expands reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The amendments in the ASU require, among other things, disclosure of significant segment expenses that are regularly provided to an entity's chief operating decision maker (“CODM”) and a description of other segment items (the difference between segment revenue less the segment expenses disclosed under the significant expense principle and each reported measure of segment profit or loss) by reportable segment, as well as disclosure of the title and position of the CODM, and an explanation of how the CODM uses the reported measure(s) of segment profit or loss in assessing segment performance and deciding how to allocate resources. Annual disclosures are required for fiscal years beginning after December 15, 2023 and interim disclosures are required for periods within fiscal years beginning after December 15, 2024. Retrospective application is required, and early adoption is permitted. These requirements are not expected to have an impact on our financial statements, but will result in significantly expanded reportable segment disclosures. In December 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosures, which requires disclosure of disaggregated income taxes paid, prescribes standard categories for the components of the effective tax rate reconciliation, and modifies other income tax-related disclosures. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024, may be applied prospectively or retrospectively, and allows for early adoption. These requirements will impact our income tax disclosures. |
ACCOUNTS RECEIVABLE
ACCOUNTS RECEIVABLE | 12 Months Ended |
Dec. 31, 2023 | |
Receivables [Abstract] | |
ACCOUNTS RECEIVABLE | ACCOUNTS RECEIVABLE, NET Accounts receivable at December 31, 2023 and 2022, consisted of the following (amounts in thousands): 2023 2022 Accounts receivable $ 224,485 $ 272,928 Allowance for credit losses (5,340) (6,170) Accounts receivable, net $ 219,145 $ 266,758 Accounts receivable are reduced by an estimated allowance for credit losses which is based on known risks and historical losses. |
INVENTORIES
INVENTORIES | 12 Months Ended |
Dec. 31, 2023 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | INVENTORIES Inventories at December 31, 2023 and 2022, consisted of the following (amounts in thousands): 2023 2022 Raw material $ 108,504 $ 128,170 Work-in-process 39,921 42,468 Finished goods 216,731 226,585 $ 365,156 $ 397,223 Inventories are reduced by estimated provisions for slow-moving and obsolete inventory. |
PREPAID AND OTHER CURRENT ASSET
PREPAID AND OTHER CURRENT ASSETS | 12 Months Ended |
Dec. 31, 2023 | |
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, 2023 and 2022, consisted of the following (amounts in thousands): 2023 2022 Value added tax and duty receivable, including tax credits $ 15,255 $ 38,604 Factory supplies 24,472 22,553 Prepaid expense 20,783 19,062 Prepaid taxes 2,144 2,596 Deposits 1,338 1,388 Contract receivable 1,213 578 Other 7,024 1,289 $ 72,229 $ 86,070 |
PROPERTY, PLANT AND EQUIPMENT,
PROPERTY, PLANT AND EQUIPMENT, NET | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT | PROPERTY, PLANT, AND EQUIPMENT, NET Property, plant, and equipment at December 31, 2023 and 2022, consisted of the following (amounts in thousands): 2023 2022 Land and improvements $ 42,140 $ 40,330 Buildings and improvements 243,241 237,507 Machinery and equipment 628,975 588,857 Tools, dies, and molds 116,328 112,990 Construction-in-process 29,744 29,291 1,060,428 1,008,975 Less accumulated depreciation (738,734) (712,370) $ 321,694 $ 296,605 Depreciation, including depreciation on capital leases, related to property, plant, and equipment for the years ended December 31, 2023, 2022 and 2021 totaled $41.0 million, $41.5 million, and $46.4 million, respectively. |
OTHER ASSETS
OTHER ASSETS | 12 Months Ended |
Dec. 31, 2023 | |
Other Assets, Noncurrent Disclosure [Abstract] | |
OTHER ASSETS | OTHER LONG-TERM ASSETS Other long-term assets at December 31, 2023 and 2022, consisted of the following (amounts in thousands): 2023 2022 Net pension asset $ 19,566 $ 11,241 Prepaid software 5,879 5,468 Investments in nonconsolidated affiliates 7,127 6,948 Manufacturing spares 2,089 1,683 Amortizable intangibles 1,387 1,610 Deferred financing costs 195 264 Other 4,539 3,515 $ 40,782 $ 30,729 |
OTHER CURRENT LIABILITIES
OTHER CURRENT LIABILITIES | 12 Months Ended |
Dec. 31, 2023 | |
Other Liabilities, Current [Abstract] | |
OTHER CURRENT LIABILITIES | OTHER CURRENT LIABILITIES Other current liabilities at December 31, 2023 and 2022, consisted of the following (amounts in thousands): 2023 2022 Compensation and benefits $ 47,543 $ 45,389 Warranty 21,710 19,914 Accrued insurance benefits 19,162 21,154 Customer rebates and deposits 15,490 16,279 Accrued other taxes 13,762 18,549 Operating lease current liabilities 5,021 3,850 Accrued interest 4,955 5,040 Foreign government grant (a) 4,509 1,888 Settlement of legal matter (b) — 1,260 Other 22,109 18,605 $ 154,261 $ 151,928 (a) For the year ended December 31, 2023, the Company received government subsidies associated with current year capital expenditure investments in technological and digital innovation in Europe. The amount of the government subsidy is used to offset existing payables to government in the future. In addition, during August 2014, the Company received an approximately $17.0 million capital grant from the Italian government for asset damages related to the earthquake that occurred in May 2012 at one of our Italian subsidiaries. The grant was recorded as deferred income in non-current liabilities which is being amortized over the life of the reconstructed building. There are no specific stipulations associated with the government grant. |
WARRANTY
WARRANTY | 12 Months Ended |
Dec. 31, 2023 | |
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): 2023 2022 Warranty liability, January 1 $ 19,914 $ 16,628 Provision for warranty liabilities 14,478 14,656 Warranty payments made (12,682) (11,370) Warranty liability, December 31 $ 21,710 $ 19,914 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. |
REVOLVING CREDIT FACILITY AND L
REVOLVING CREDIT FACILITY AND LONG-TERM DEBT | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
REVOLVING CREDIT FACILITY AND LONG-TERM DEBT | DEBT Long-term debt consisted of the following as of the dates set forth below (amounts in thousands): December 31, 2023 Principal Balance Unamortized Debt Issuance Net Carrying Amount 7.00% senior secured notes due 2028 $ 400,000 $ (3,723) $ 396,277 Titan Europe credit facilities 22,568 — 22,568 Other debt 7,246 — 7,246 Total debt 429,814 (3,723) 426,091 Less amounts due within one year 16,913 — 16,913 Total long-term debt $ 412,901 $ (3,723) $ 409,178 December 31, 2022 Principal Balance Unamortized Debt Issuance Net Carrying Amount 7.00% senior secured notes due 2028 $ 400,000 $ (4,599) $ 395,401 Titan Europe credit facilities 37,362 — 37,362 Other debt 12,855 — 12,855 Total debt 450,217 (4,599) 445,618 Less amounts due within one year 30,857 — 30,857 Total long-term debt $ 419,360 $ (4,599) $ 414,761 The weighted-average interest rates on total short-term borrowings, at December 31, 2023 and December 31, 2022, were approximately 6.8% for both years. Aggregate maturities of total debt at December 31, 2023, for each of the years (or other periods) set forth below were as follows (amounts in thousands): 2024 $ 16,956 2025 3,362 2026 3,607 2027 1,388 2028 400,613 Thereafter 3,888 $ 429,814 7.00% senior secured notes due 2028 On April 22, 2021, the Company issued $400.0 million aggregate principal amount of 7.00% senior secured notes due April 2028 (the senior secured notes due 2028), guaranteed by certain of the Company's subsidiaries. Including the impact of debt issuance costs, these notes had an effective yield of 7.27% at issuance. These notes are secured by the land and buildings of the following subsidiaries of the Company: Titan Wheel Corporation of Illinois, Titan Tire Corporation, Titan Tire Corporation of Freeport, and Titan Tire Corporation of Bryan. In connection with the issuance of the senior secured notes due 2028, the Company satisfied and discharged the indenture related to the 6.50% senior secured notes due 2023 (senior secured notes due 2023) by completing a call and redemption of all of its outstanding $400.0 million principal amount of the senior secured notes due 2023. In connection with this call and redemption in 2021, the Company recorded $16.0 million of expenses for the year ended December 31, 2021, which was included within the loss on senior note repurchase line item within the Consolidated Statements of Operations. Titan Europe credit facilities The Titan Europe credit facilities included borrowings from various institutions totaling $22.6 million in aggregate principal amount at December 31, 2023. Maturity dates on this primarily unsecured debt range from less than one year to five years. The interest rates range from 0.5% to 6.5%. 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 on October 28, 2026. The credit facility can be expanded by up to $50 million through an accordion provision within the agreement. 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. Based on eligible accounts receivable and inventory balances, the Company's amount available for borrowing totaled $96.2 million at December 31, 2023. With outstanding letters of credit totaling $6.2 million, the net amount available for borrowing under the credit facility totaled $90.0 million at December 31, 2023. There were no borrowings under the revolving credit facility at December 31, 2023. Other Debt The Company has a working capital loan at Titan Pneus do Brasil Ltda at varying interest rates from approximately 5% to 6.5%, which totaled $7.2 million at December 31, 2023. The maturity date on this loan is one year or less. The Company expects to negotiate an extension of the maturity date on this loan with the respective financial institution or repay, as needed. |
OTHER LONG-TERM LIABILITIES
OTHER LONG-TERM LIABILITIES | 12 Months Ended |
Dec. 31, 2023 | |
Other Liabilities, Noncurrent [Abstract] | |
OTHER LONG-TERM LIABILITIES | OTHER LONG-TERM LIABILITIES Other long-term liabilities at December 31, 2023 and 2022, consisted of the following (amounts in thousands): 2023 2022 Accrued pension liabilities $ 12,795 $ 13,877 Foreign government grant (a) 12,383 11,797 Operating lease long-term liabilities 6,153 2,409 Income tax liabilities 35 43 Other 6,677 9,019 $ 38,043 $ 37,145 |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2023 | |
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. Periodically, the Company enters into derivative transactions to hedge against fluctuations in commodity prices in North America. These derivative financial instruments are recognized at their fair value. The fair value of the hedges is recorded on the balance sheet as either an asset or liability, depending on whether the value of the hedge is positive or negative. These derivatives are designated as cash flow hedges. Any changes in fair value are recognized in other comprehensive income (OCI) until the hedged item affects earnings. When the hedged item impacts earnings, the accumulated gains or losses in OCI are reclassified to the income statement in the same period or periods during which the hedged item affects earnings. The amount of unrealized gains and losses from cash flow hedges that are expected to be reclassified to earnings in the next twelve months, is not significant; therefore, additional disclosures are not presented. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 12 Months Ended |
Dec. 31, 2023 | |
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 Gain (Loss) on Derivatives Unrecognized Total Balance at January 1, 2022 $ (236,059) $ (39) $ (10,382) $ (246,480) Currency translation adjustments (7,653) — — (7,653) Reclassification adjustments: Defined benefit pension plan adjustments, net of tax of $(383) — — 1,115 1,115 Derivative gain — 1,263 — 1,263 Balance at December 31, 2022 (243,712) 1,224 (9,267) (251,755) Currency translation adjustments 26,257 — — 26,257 Reclassification adjustments: Defined benefit pension plan adjustments, net of tax of $(2,663) — — 6,939 6,939 Derivative loss — (484) — (484) Balance at December 31, 2023 $ (217,455) $ 740 $ (2,328) $ (219,043) |
STOCKHOLDERS EQUITY
STOCKHOLDERS EQUITY | 12 Months Ended |
Dec. 31, 2023 | |
Equity, Attributable to Parent [Abstract] | |
STOCKHOLDERS’ EQUITY | STOCKHOLDERS’ EQUITY On December 16, 2022, the Board of Directors authorized a share repurchase program allowing for the expenditure of up to $50.0 million (the “Share Repurchase Program”) for the repurchase of the Company's common stock. This authorization took effect immediately and will remain in place for up to three years. Under the Share Repurchase Program Titan repurchased 2,653,786 shares of its common stock totaling $32.6 million during 2023. As of December 31, 2023, $17.4 million remains available for future share repurchases under this program. The Company records treasury stock using the cost method. The Company and the Russian Direct Investment Fund (RDIF) own all of the equity interests in Voltyre-Prom, a leading producer of agricultural and industrial tires in Volgograd, Russia. On February 11, 2019, the Company entered into a definitive agreement (the Agreement) with an affiliate of the RDIF relating to the put option included in the Voltyre-Prom Shareholders' Agreement that was exercised by RDIF. In November 2021, Titan received regulatory approval for the issuance of restricted Titan common stock to RDIF. On December 17, 2021, the Company issued 4,032,259 shares of restricted Titan common stock to the RDIF equity holders subject to the Company's right to repurchase the shares for $25.0 million until February 12, 2022. On February 1, 2022, the Company entered into a Stock Purchase Agreement with the RDIF equity holders to buy back the restricted Titan common stock for the previously agreed amount of $25.0 million. The transaction was completed on February 1, 2022. Following the transaction, the Company and RDIF's ownership remained at 64.3% and 35.7%, respectively, of Voltyre-Prom. |
VARIABLE INTEREST ENTITIES (Not
VARIABLE INTEREST ENTITIES (Notes) | 12 Months Ended |
Dec. 31, 2023 | |
Variable Interest Entity, Measure of Activity [Abstract] | |
Variable Interest Entity Disclosure [Text Block] | VARIABLE INTEREST ENTITIES The Company holds a variable interest in one joint venture at the end of December 31, 2023 and two joint ventures at the end of December 31, 2022 for which Titan is the primary beneficiary. In November 2023, Titan sold its 50% ownership in a joint venture that operates distribution facilities in Canada. At December 31, 2023, Titan is a 50% owner of a manufacturer of undercarriage components and complete track systems for earthmoving machines in India. The Company’s variable interests in these joint ventures relate to sales of Titan products to these entities, consigned inventory, and working capital loans. 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. The other equity holders’ interests are reflected in “Net income 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, 2023 and 2022 (amounts in thousands): 2023 2022 Cash and cash equivalents $ 355 $ 1,729 Inventory 1,431 2,581 Other current assets 2,364 4,179 Property, plant, and equipment, net 2,477 4,657 Other non-current assets 222 465 Total assets $ 6,849 $ 13,611 Current liabilities 1,117 2,077 Other long-term liabilities 869 1,062 Total liabilities $ 1,986 $ 3,139 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 variable interests in certain VIEs that 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 related to 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, 2023 and 2022 (amounts in thousands): 2023 2022 Investments $ 7,127 $ 6,827 Total VIE assets 7,127 6,827 Accounts payable to the non-consolidated VIEs 3,578 3,936 Maximum exposure to loss $ 10,705 $ 10,763 |
ROYALTY EXPENSE
ROYALTY EXPENSE | 12 Months Ended |
Dec. 31, 2023 | |
Other Income and Expenses [Abstract] | |
ROYALTY EXPENSE | ROYALTY EXPENSE The Company has trademark license agreements with The Goodyear Tire & Rubber Company to manufacture and sell certain farm tires under the Goodyear name. These agreements cover sales in North America, Latin America, Europe, the Middle East, Africa, Russia, and other Commonwealth of Independent States countries. Each of these agreements is scheduled to expire in 2025. Royalty expenses recorded for the years ended December 31, 2023, 2022, and 2021, were $9.6 million, $11.7 million, and $10.5 million, respectively. |
OTHER INCOME
OTHER INCOME | 12 Months Ended |
Dec. 31, 2023 | |
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): 2023 2022 2021 Income on indirect taxes (a) $ 475 $ 32,043 $ — Loss on sale of Australia wheel business (b) — (10,890) — Proceeds from government grant (c) 319 1,324 — Gain on legal settlement (d) — — 1,750 Equity investment income 1,158 859 806 Gain on sale of assets 246 216 257 Other income (expense) 430 1,868 (727) $ 2,628 $ 25,420 $ 2,086 (a) In May 2022 and September 2022, the Brazilian tax authorities approved indirect tax credits to be applied against future tax obligations. Refer to Footnote 17 for additional information. (b) The loss on sale of the Australian wheel business is comprised primarily of the release of the cumulative translation adjustment of approximately $10.0 million and closing costs associated with the completion of the transaction of approximately $0.9 million. Refer to Footnote 1 for additional information. (c) For the year ended December 31, 2023, the Company received government subsidies associated with current year capital expenditure investments in technological and digital innovation in Europe, of which $0.3 million was recorded as other income. In addition, during August 2014, the Company received approximately $17.0 million capital grant from the Italian government for asset damages related to the earthquake that occurred in May 2012 at one of our Italian subsidiaries. The grant was recorded as deferred income in non-current liabilities which is being amortized over the life of the reconstructed building. There are no specific stipulations associated with the government grant. The Company received proceeds of an additional $1.9 million from the grant for the year ended December 31, 2022, of which $1.3 million was recorded as other income to match to the historical depreciation recorded on the underlying assets. Refer to Footnote 7 for additional information. (d) The gain on legal settlement relates to proceeds received from a steel supplier for the year ended December 31, 2021. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Income before income taxes, consisted of the following for the years set forth below (amounts in thousands): 2023 2022 2021 Domestic $ 20,809 $ 73,361 $ (5,862) Foreign 88,939 128,992 56,902 $ 109,748 $ 202,353 $ 51,040 The income tax provision was as follows for the years set forth below (amounts in thousands): 2023 2022 2021 Current Federal $ (217) $ (55) $ (933) State 1,341 1,897 (160) Foreign 26,999 44,710 16,422 28,123 46,552 15,329 Deferred Federal (2,513) (14,953) — State 1,186 (10,959) — Foreign (754) 2,527 (14,180) (2,081) (23,385) (14,180) Income tax provision $ 26,042 $ 23,167 $ 1,149 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 income as a result of the following: 2023 2022 2021 Statutory U.S. federal tax rate 21.0 % 21.0 % 21.0 % Unrecognized tax positions — (0.3) (1.1) Foreign tax rate and income differential 9.6 11.7 13.0 Valuation allowance (3.5) (23.4) (33.9) State taxes, net 1.2 2.0 3.7 Nondeductible royalty 0.8 0.5 1.9 Federal Benefit of Notice 2023-55 (5.2) — — Equity based compensation — (0.3) (1.0) Nondeductible interest — — 1.5 Other, net (0.2) 0.2 (2.8) Effective tax rate 23.7 % 11.4 % 2.3 % The effective tax rate for the year ended December 31, 2023, was 23.7% compared to 11.4% for the year ended December 31, 2022. The effective rate for 2023 was negatively affected by the impacts of foreign income and state income taxes, which resulted in a net $10.5 million and $1.3 million tax expense, respectively. For 2023, the rate was positively impacted by the release of Notice 2023-55, resulting in a federal benefit of $5.7 million. After giving consideration to these items, the effective tax rate for 2023 of 23.7% was higher than the 21% U.S. federal statutory rate. In December 2021, the U.S. Treasury Department released final regulations concerning the U.S foreign tax credit. In November 2022, the U.S. Treasury Department and IRS released proposed regulations which provided additional guidance relating to the credits for foreign taxes. As a result, for 2022 the Company did not expect to receive a credit for Brazilian income taxes paid for U.S. tax purposes. This resulted in US tax associated with the Brazilian income, which led to a higher impact of foreign income in the rate for 2022. In July 2023, the IRS released Notice 2023-55. This notice generally allows a taxpayer that determined foreign taxes were creditable prior to the 2022 FTC final regulations to continue to treat such foreign income taxes as creditable during 2022 and 2023. Thus, this notice allows Titan to continue to take the position Brazilian income taxes are creditable taxes for 2023. Furthermore, it allowed Titan to take the position on its 2022 tax return that the Brazilian income taxes are creditable, resulting in a $5.7 million federal benefit. In jurisdictions where the Company operates, management continues to monitor the realizability of the deferred tax assets arising from losses in its cyclical business, taking into account multiple factors. As of each reporting date, management considers new evidence, both positive and negative, that could affect its view of the future realization of deferred tax assets. The Company continues to record a valuation allowance in several major jurisdictions, including various U.S. states, Italy, and Luxembourg as these amounts remain more likely than not that the deferred tax assets would not be utilized. The Company released a valuation allowance of $0.6 million and $53.3 million on the net deferred tax asset in 2023 and 2022, respectively. These amounts are 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 these 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, 2023 and 2022, were as follows (amounts in thousands): 2023 2022 Deferred tax assets: Net operating loss carryforwards $ 115,336 $ 117,646 Inventory 8,492 7,001 Warranty 6,496 5,587 Employee benefits and related costs 8,130 8,394 Prepaid royalties 1,576 2,145 Interest limitation 17,851 16,361 Lease liability 4,390 3,951 Intangible assets 1,592 1,105 Other 15,322 14,045 Deferred tax assets 179,185 176,235 Deferred tax liabilities: Fixed assets (11,577) (11,978) Lease assets (4,384) (3,869) Pension (3,740) (1,169) Other (4,150) (2,851) Deferred tax liabilities (23,851) (19,867) Subtotal 155,334 156,368 Valuation allowance (119,535) (121,057) Net deferred tax asset (liability) $ 35,799 $ 35,311 As of December 31, 2023 and 2022, certain net tax loss carryforwards of $115.3 million and $117.6 million were available with $1.7 million expiring between 2023 and 2028 and $113.6 million expiring after 2028. At December 31, 2023, a valuation allowance of $119.5 million has been established. The net change in the valuation allowance was $(1.5) million and $(52.1) million for 2023 and 2022, respectively. The majority of the valuation allowance is related to deferred tax assets in the U.S., Italy, and Luxembourg. As of December 31, 2023, the Company has $61.6 million of gross federal net operating loss carryforward, a portion of which expires starting in 2035 and a portion of which does not expire. Additionally, the Company has $290.7 million of gross state net operating losses and $356.5 million of gross foreign loss carryforwards. The Company has not changed its indefinite reinvestment assertion during the year 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. 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., Brazil, and Italy. Open tax years for the U.S. are from 2020-2023, Brazil has open tax years from 2017-2023, and Italy has open tax years from 2017-2023. The Company has applied the provisions of ASC 740, “Income Taxes” related to unrecognized tax benefits. At December 31, 2023, 2022, and 2021, the unrecognized tax benefits were $0.0 million, $0.0 million, and $0.1 million, respectively. As of December 31, 2023, $0.0 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 $0.0 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): 2023 2022 2021 Balance at January 1 $ 30 $ 540 $ 1,012 Increases to tax positions taken during the current year — — — Increases to tax positions taken during the prior years — — — Decreases to tax positions taken during prior years — — — Decreases due to lapse of statutes of limitations (7) (506) (473) Settlements — — — Foreign exchange — (4) 1 Balance at December 31 $ 23 $ 30 $ 540 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 $0.0 million, $0.0 million, and $(0.2) million at December 31, 2023, 2022 and 2021, respectively. There were no accrued interest and penalties excluded at December 31, 2023, 2022, and 2021. Brazilian Tax Credits In June 2021, the Company’s Brazilian subsidiaries received a notice that they had prevailed on an existing legal claim in regards to certain non-income (indirect) taxes that had been previously charged and paid. The matter specifically relates to companies’ rights to exclude the state tax on goods circulation (a value-added-tax or VAT equivalent, known in Brazil as “ICMS”) from the calculation of certain additional indirect taxes (specifically the program of social integration (“PIS”) and contribution for financing of social security (“COFINS”) levied by the Brazilian States on the sale of goods. During the second quarter of 2023, one of the Company’s Brazilian subsidiaries received a notice that they had prevailed on an additional legal claim in regards to the non-income (indirect) taxes credits that had been granted in a prior year ruling. The most recent ruling exempted from taxes, the interest benefit on the indirect tax credits granted in prior year. For the year ended December 31, 2023, the Company recorded indirect tax credits of $0.5 million within other income in the consolidated statements of operations. The Company also recorded a $2.6 million benefit within the provision for income taxes in the consolidated statements of operations for the year ended December 31, 2023. During the second and third quarter of 2022, the Company submitted the related supporting documentation and received the approval from the Brazilian tax authorities for two of its Brazilian subsidiaries. For the year ended December 31, 2022, the Company recorded $32.0 million within other income in the consolidated statements of operations. The Company also recorded $16.1 million of income tax expense associated with the recognition of these indirect tax credits for the year ended December 31, 2022. Of the $16.1 million income tax expense recorded, $9.4 million was recorded locally in Brazil, while the remaining $6.7 million was recorded to the US in accordance with the GILTI income tax requirements. The Company has fully utilized the credits against future PIS/COFINS and income tax obligations by the end of 2023. |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 12 Months Ended |
Dec. 31, 2023 | |
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. 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, 2023 and 2022 (amounts in thousands): Change in benefit obligation: 2023 2022 Benefit obligation at beginning of year $ 79,379 $ 106,587 Plan amendments 1,391 — Service cost 606 590 Interest cost 4,331 2,872 Disposition of Australia benefit obligation — (853) Actuarial gain (632) (19,991) Benefits paid (7,588) (8,866) Foreign currency translation (279) (960) Benefit obligation at end of year $ 77,208 $ 79,379 Change in plan assets: Fair value of plan assets at beginning of year $ 75,025 $ 97,007 Actual return on plan assets 14,558 (14,179) Employer contributions 442 436 Benefits paid (7,294) (8,228) Foreign currency translation 38 (11) Fair value of plan assets at end of year $ 82,769 $ 75,025 Funded (unfunded) status at end of year $ 5,561 $ (4,354) Amounts recognized in Consolidated Balance Sheet: Noncurrent assets $ 19,566 $ 11,241 Current liabilities (1,210) (1,718) Noncurrent liabilities (12,795) (13,877) Net amount recognized in the Consolidated Balance Sheet $ 5,561 $ (4,354) The pension benefit obligation included $63.7 million of pension benefit obligation for the three frozen plans in the U.S. and $13.5 million of pension benefit obligation for plans at foreign subsidiaries. The fair value of plan assets included $82.0 million of plan assets for the three frozen plans in the U.S. and $0.8 million of plan assets for foreign plans. Information for pension plans with accumulated benefit obligations and projected benefit obligations in excess of plan assets were (amounts in thousands): 2023 2022 Pension Plans in which Accumulated Benefit Obligation Exceeds Plan Assets at December 31, Accumulated benefit obligation $ 44,976 $ 45,225 Fair value of plan assets $ 31,903 $ 30,558 Accumulated Benefit Obligation at December 31 $ 76,746 $ 78,853 Pension Plans in which Projected Benefit Obligation Exceeds Plan Assets at December 31, Projected benefit obligation $ 45,439 $ 45,751 Fair value of plan assets $ 31,903 $ 30,558 Projected Benefit Obligation at December 31 $ 77,208 $ 79,379 Amounts recognized in accumulated other comprehensive loss: 2023 2022 Unrecognized prior service cost $ 634 $ 643 Unrecognized net loss (11,480) (21,091) Deferred tax effect of unrecognized items 8,518 11,181 Net amount recognized in accumulated other comprehensive loss $ (2,328) $ (9,267) The weighted-average assumptions used in the actuarial computation that derived the benefit obligations at December 31 were as follows: 2023 2022 Discount rate 5.2 % 5.8 % Expected long-term return on plan assets 6.5 % 6.5 % 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, 2023, 2022, and 2021 (amounts in thousands): Components of net periodic benefit cost and other Net periodic benefit cost: 2023 2022 2021 Service cost $ 606 $ 590 $ 655 Interest cost 4,331 2,872 2,880 Assumed return on assets (4,669) (6,071) (6,024) Amortization of unrecognized prior service cost (114) (85) (95) Amortization of net unrecognized loss 1,004 1,426 2,805 Net periodic pension cost (benefit) $ 1,158 $ (1,268) $ 221 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, 2023, 2022, and 2021 were as follows: 2023 2022 2021 Discount rate 5.8 % 2.7 % 1.4 % The allocation of the fair value of plan assets was as follows: Percentage of Plan Assets Target Asset Category 2023 2022 2023 U.S. equities (a) 57 % 62 % 40% - 80% Fixed income 21 % 23 % 20% - 50% Cash and cash equivalents 10 % 8 % 0% - 20% International equities (a) 12 % 7 % 0% - 16% 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, 2023 Total Level 1 Level 2 Level 3 Money market funds $ 8,186 $ 8,186 $ — $ — Common stock 27,658 27,658 — — Bonds and securities 10,302 10,302 — — Mutual and insurance funds 36,623 35,828 795 — Totals $ 82,769 $ 81,974 $ 795 $ — Fair Value Measurements as of December 31, 2022 Total Level 1 Level 2 Level 3 Money market funds $ 5,377 $ 5,377 $ — $ — Common stock 29,759 29,759 — — Bonds and securities 4,891 4,891 — — Mutual and insurance funds 34,998 34,084 914 — Totals $ 75,025 $ 74,111 $ 914 $ — 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 $1.9 million (approximately two percent of total plan assets) at December 31, 2023, and $2.6 million (approximately three percent of total plan assets) at December 31, 2022. 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 6.5% 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. Based on the 2023 minimum pension funding calculations, the Company does not anticipate any minimum funding requirements. Projected benefit payments from the plans as of December 31, 2023, are estimated as follows (amounts in thousands): 2024 $ 8,235 2025 7,471 2026 7,273 2027 6,793 2028 7,006 2029-2033 29,080 401(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 144,439 shares, 124,645 shares and 175,267 shares of common stock in connection with this 401(k) plan during 2023, 2022, and 2021, respectively. Expenses to the Company related to this common stock matching contribution were $1.8 million, $1.7 million, and $1.4 million for 2023, 2022, and 2021, 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, $4.1 million, and $3.8 million for 2023, 2022, and 2021, respectively. |
STOCK COMPENSATION
STOCK COMPENSATION | 12 Months Ended |
Dec. 31, 2023 | |
STOCK OPTION PLANS [Abstract] | |
STOCK OPTION PLANS | STOCK COMPENSATION The Company recorded stock compensation of $6.0 million, $4.3 million, and $4.3 million in 2023, 2022, and 2021, respectively. Titan International, Inc. Equity and Incentive Compensation Plan The Company adopted a new Titan International, Inc. Equity and Incentive Compensation Plan at the 2021 Annual Meeting of Stockholders to provide stock compensation as a means of attracting and retaining qualified independent directors and employees for the Company. A total of 3.0 million shares are available for future issuance under the equity incentive plan at December 31, 2023. Stock Options Under the Company's Equity Incentive plan (or its predecessor plan), the Company granted no stock options in 2023, 2022, and 2021. 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. All options outstanding at December 31, 2023 are fully vested and expire 10 years from the grant date. The following is a summary of activity in stock options during the year ended December 31, 2023: Shares Subject Weighted-Average Aggregate Intrinsic Value (in thousands) Exercise Price Remaining Contractual Life (in Years) Outstanding, December 31, 2022 408,200 $ 13.45 3.16 Granted — — Exercised — — Forfeited/Expired (60,000) 24.07 Outstanding, December 31, 2023 348,200 $ 11.62 2.64 $ 1,223 Exercisable, December 31, 2023 348,200 $ 11.62 2.64 $ 1,223 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. Restricted Stock Units and Performance Stock Units Under the Company's Equity Incentive plan (or its predecessor plan), the Company granted restricted stock units (RSU) to eligible employee and the members of the Company's Board of Directors. The restricted stock units to employees vest over a period of three years. The restricted stock units to the members of the Company's Board of Directors vest over a period of one year. During 2023, 2022 and 2021, 571,530, 552,992, and 438,195 RSU shares were granted, respectively. The Company recorded $5.1 million, $3.4 million and $3.4 million stock compensation expense associated with RSUs for the year ended December 31, 2023, 2022, and 2021, respectively. On December 28, 2021, the Company awarded certain named executive officers grants of long-term performance stock units (PSU) based on the achievement of certain adjusted-EBITDA targets for the fiscal years commencing January 1, 2021 and ending December 31, 2024. The number of shares earned could range between 0% and 125% of the target amount depending upon performance achieved over the four year vesting period. The Company recorded $0.9 million, $0.9 million and $0.9 million of stock compensation expense associated with PSUs for the year ended December 31, 2023, 2022, and 2021, respectively. A summary of RSU and PSU activity for the year ended December 31, 2023, is presented in the following table: RSU PSU Total Shares Weighted-Average Grant Date Fair Value Unvested at December 31, 2022 (a) 876,888 328,948 1,205,836 $ 10.37 Granted 571,530 — 571,530 11.50 Vested (453,439) — (453,439) 8.99 Forfeited/Expired (21,333) — (21,333) 11.54 Unvested at December 31, 2023 973,646 328,948 1,302,594 $ 11.33 (a) PSU awards are presented at maximum payout of 125% of the target amount at grant date. Pre-tax unrecognized compensation expense for unvested RSUs and PSUs was $8.3 million at December 31, 2023, and will be recognized as an expense over a weighted-average period of 1.2 years. The fair value of shares vested, based on the stock's fair value on the vesting date, was $5.1 million, $6.0 million, and $7.5 million for the years ended December 31, 2023, 2022, and 2021, respectively. |
LITIGATION
LITIGATION | 12 Months Ended |
Dec. 31, 2023 | |
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. In the opinion of management, the Company is not currently involved in any legal proceedings which, individually or in the aggregate, could have a material effect on its financial position, results of operations, or cash flows. |
LEASE COMMITMENTS
LEASE COMMITMENTS | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Lessee, Operating Leases | 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 (7.27%), 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. For the years ended December 31, 2023, 2022, and 2021, operating lease expense was $5.6 million, $5.1 million, and $6.1 million, respectively, and finance lease amortization expense was $3.0 million, $2.6 million, and $3.8 million, respectively. Supplemental balance sheet information related to leases was as follows (amounts in thousands): Balance Sheet Classification 2023 Operating lease ROU assets Operating lease assets $ 11,955 Operating lease current liabilities Other current liabilities $ 5,021 Operating lease long-term liabilities Other long-term liabilities 6,153 Total operating lease liabilities $ 11,174 Finance lease, gross Property, plant & equipment, net $ 5,175 Finance lease accumulated depreciation Property, plant & equipment, net (3,489) Finance lease, net $ 1,686 Finance lease current liabilities Other current liabilities $ 1,093 Finance lease long-term liabilities Other long-term liabilities 1,321 Total finance lease liabilities $ 2,414 At December 31, 2023, maturity of lease liabilities were as follows (amounts in thousands): Operating Leases Finance Leases 2024 $ 5,302 $ 1,185 2025 3,315 787 2026 2,592 528 2027 533 83 2028 251 14 Thereafter 411 — Total future minimum lease payments $ 12,404 $ 2,597 Less imputed interest 1,230 183 $ 11,174 $ 2,414 Weighted average remaining lease term (in years) 3.18 2.41 Supplemental cash flow information related to leases for the year ended December 31, 2023 were as follows: operating cash flows from operating leases were $6.8 million and operating cash flows from finance leases were $0.2 million. Supplemental cash flow information related to leases for the year ended December 31, 2022 were as follows: payments on operating leases were $9.2 million and payments on finance leases were $0.2 million. |
Lessee, Finance Leases | 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 (7.27%), 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. For the years ended December 31, 2023, 2022, and 2021, operating lease expense was $5.6 million, $5.1 million, and $6.1 million, respectively, and finance lease amortization expense was $3.0 million, $2.6 million, and $3.8 million, respectively. Supplemental balance sheet information related to leases was as follows (amounts in thousands): Balance Sheet Classification 2023 Operating lease ROU assets Operating lease assets $ 11,955 Operating lease current liabilities Other current liabilities $ 5,021 Operating lease long-term liabilities Other long-term liabilities 6,153 Total operating lease liabilities $ 11,174 Finance lease, gross Property, plant & equipment, net $ 5,175 Finance lease accumulated depreciation Property, plant & equipment, net (3,489) Finance lease, net $ 1,686 Finance lease current liabilities Other current liabilities $ 1,093 Finance lease long-term liabilities Other long-term liabilities 1,321 Total finance lease liabilities $ 2,414 At December 31, 2023, maturity of lease liabilities were as follows (amounts in thousands): Operating Leases Finance Leases 2024 $ 5,302 $ 1,185 2025 3,315 787 2026 2,592 528 2027 533 83 2028 251 14 Thereafter 411 — Total future minimum lease payments $ 12,404 $ 2,597 Less imputed interest 1,230 183 $ 11,174 $ 2,414 Weighted average remaining lease term (in years) 3.18 2.41 Supplemental cash flow information related to leases for the year ended December 31, 2023 were as follows: operating cash flows from operating leases were $6.8 million and operating cash flows from finance leases were $0.2 million. Supplemental cash flow information related to leases for the year ended December 31, 2022 were as follows: payments on operating leases were $9.2 million and payments on finance leases were $0.2 million. |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Notes) | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | PURCHASE OBLIGATIONS The purchase obligations mainly consist of commitments for raw material purchases and equipment associated with our global manufacturing operations. At December 31, 2023, the Company's expected cash outflow resulting from non-cancellable purchase obligations are summarized by year in the table below (amounts in thousands): 2024 $ 37,688 2025 869 2026 4 Total non-cancellable purchase obligations $ 38,561 |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Dec. 31, 2023 | |
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 an allocation of the tangible assets located at such operating units’ manufacturing facilities and the intangible assets associated with the acquisitions of such operating units. However, certain operating units’ property, plant, and equipment balances are carried at the corporate level. Titan is organized primarily on the basis of products being included in three marketing segments, with each reportable segment including wheels, tires, wheel/tire assemblies, and undercarriage systems and components. Given the integrated manufacturing operations and common administrative and marketing support, a substantial number of allocations primarily based on segment sales data must be made to determine operating segment data. 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, 2023, 2022, and 2021 (amounts in thousands): 2023 2022 2021 Revenues from external customers Agricultural $ 980,537 $ 1,192,239 $ 949,400 Earthmoving/construction 687,758 807,356 693,350 Consumer 153,505 169,785 137,465 $ 1,821,800 $ 2,169,380 $ 1,780,215 Gross profit Agricultural $ 163,026 $ 193,585 $ 135,807 Earthmoving/construction 110,690 135,788 83,705 Consumer 32,133 31,337 18,030 $ 305,849 $ 360,710 $ 237,542 Income from operations Agricultural $ 100,642 $ 130,474 $ 77,666 Earthmoving/construction 55,122 79,810 27,809 Consumer 22,380 22,843 9,553 Corporate & Unallocated (29,417) (27,325) (29,853) Income from operations 148,727 205,802 85,175 Interest expense (18,785) (29,796) (32,221) Loss on senior note repurchase — — (16,020) Foreign exchange (loss) gain (22,822) 927 12,020 Other income, net 2,628 25,420 2,086 Income before income taxes $ 109,748 $ 202,353 $ 51,040 Capital expenditures Agricultural $ 32,306 $ 25,738 $ 20,749 Earthmoving/construction 23,249 17,576 15,014 Consumer 5,244 3,660 3,039 $ 60,799 $ 46,974 $ 38,802 Depreciation & amortization Agricultural $ 21,405 $ 22,645 $ 25,082 Earthmoving/construction 15,185 15,337 18,428 Consumer 3,404 3,226 3,621 Corporate & Unallocated 2,440 1,539 860 $ 42,434 $ 42,747 $ 47,991 Total assets Agricultural $ 559,607 $ 548,523 $ 517,528 Earthmoving/construction 497,508 538,064 502,373 Consumer 155,602 133,213 133,906 Corporate & Unallocated (a) 76,528 64,830 28,878 $ 1,289,245 $ 1,284,630 $ 1,182,685 (a) Unallocated assets included cash of approximately $32 million, $20 million, and $7 million as of December 31, 2023, 2022, and 2021, 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, 2023, 2022, and 2021 was as follows (amounts in thousands): 2023 2022 2021 Net Sales United States $ 814,676 $ 1,074,715 $ 835,985 Europe / CIS 558,677 577,877 479,724 Latin America 354,979 422,439 318,879 Other international 93,468 94,349 145,627 $ 1,821,800 $ 2,169,380 $ 1,780,215 Long-Lived Assets United States $ 107,639 $ 97,112 $ 98,307 Europe / CIS 142,749 138,617 146,547 Latin America 61,169 49,714 42,599 Other international 10,137 11,162 13,656 $ 321,694 $ 296,605 $ 301,109 The table below presents information by products and reportable segments as of and for the years ended December 31, 2023, 2022 and 2021 (amounts in thousands): 2023 Agricultural Segment Earthmoving/Construction Segment Consumer Segment Total Revenues from external customers Wheels and Tires [including assemblies] $ 935,274 $ 258,709 $ 130,297 $ 1,324,280 Undercarriage systems and components 45,263 429,049 23,208 497,520 Total $ 980,537 $ 687,758 $ 153,505 $ 1,821,800 2022 Agricultural Segment Earthmoving/Construction Segment Consumer Segment Total Revenues from external customers Wheels and Tires [including assemblies] $ 1,152,933 $ 329,403 $ 147,307 $ 1,629,643 Undercarriage systems and components 39,306 477,953 22,478 539,737 Total $ 1,192,239 $ 807,356 $ 169,785 $ 2,169,380 2021 Agricultural Segment Earthmoving/Construction Segment Consumer Segment Total Revenues from external customers Wheels and Tires [including assemblies] $ 913,065 $ 292,553 $ 116,405 $ 1,322,023 Undercarriage systems and components 36,335 400,797 21,060 458,192 Total $ 949,400 $ 693,350 $ 137,465 $ 1,780,215 |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE Earnings per share for 2023, 2022, and 2021 were as follows (amounts in thousands, except per share data): 2023 2022 2021 Net income applicable to common shareholders $ 78,760 $ 176,302 $ 49,586 Determination of shares: Weighted average shares outstanding (basic) 62,452 63,040 62,100 Effect of restricted stock and stock options 509 651 585 Weighted average shares outstanding (diluted) 62,961 63,691 62,685 Earnings per share: Basic $ 1.26 $ 2.80 $ 0.80 Diluted $ 1.25 $ 2.77 $ 0.79 |
SUBSEQUENT EVENTS (Notes)
SUBSEQUENT EVENTS (Notes) | 12 Months Ended |
Dec. 31, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | SUBSEQUENT EVENTS Acquisition of The Carlstar Group Subsequent to Year-End On February 29, 2024, Titan International, Inc. acquired 100% of the Carlstar Group ("Carlstar") stock for a purchase price of $296.2 million consisting of $168.7 million in Titan International, Inc.’s stock based on the previous 45-day average price and $127.5 million in cash pursuant to an agreement dated February 29, 2024, and subject to agreed upon working capital target and escrow provisions. Carlstar is a global manufacturer and distributor of wheels and tires for a variety of end-market verticals including outdoor power equipment, power sports, trailers, and small to midsize agricultural and construction equipment. Carlstar employs over 3,400 associates in 17 manufacturing and distribution facilities located in four countries and provides solutions to customers in North America, Europe and China. In connection with the acquisition, Titan completed a new domestic credit facility which was effective on February 29, 2024. The new credit facility, with Bank of America as agent, was increased to $225.0 million (previously $125.0 million) with the amount available under the credit facility determined based upon cash, eligible accounts receivable and eligible inventory balances at certain domestic and Canadian subsidiaries. The credit facility has a five-year term and can be expanded by up to $50.0 million through an accordion provision within the agreement. The new facility has terms similar to those contained in the previous credit facility as well as other enhancements to further improve the availability within the borrowing base. The acquisition qualifies as a business combination and will be accounted for using the acquisition method of accounting. |
SCHEDULE II - VALUATION RESERVE
SCHEDULE II - VALUATION RESERVES | 12 Months Ended |
Dec. 31, 2023 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
SCHEDULE II – VALUATION RESERVES | SCHEDULE II – VALUATION AND QUALIFYING ACCOUNTS Reserves deducted in the balance sheet from the assets to which it applies (amounts in thousands): Additions Deductions Description Balance at Beginning Charged to Costs and Expenses Charged to Other Accounts Charged to Costs and Expenses Charged to Other Accounts Balance Year ended December 31, 2023 Allowance for credit loss $ 6,170 $ 50 $ — $ (880) $ — $ 5,340 Deferred income tax valuation allowance: Domestic 41,671 — — (3,117) — 38,554 Foreign 79,386 94 2,369 (868) — 80,981 Year ended December 31, 2022 Allowance for credit loss $ 4,550 $ 1,646 $ — $ (26) $ — $ 6,170 Deferred income tax valuation allowance: Domestic 94,747 — — (53,076) — 41,671 Foreign 78,425 19,503 — (13,833) (4,709) 79,386 Year ended December 31, 2021 Allowance for credit loss $ 3,782 $ 826 $ — $ (58) $ — $ 4,550 Deferred income tax valuation allowance: Domestic 98,051 — — (1,034) (2,270) 94,747 Foreign 101,125 3,712 — (20,108) (6,304) 78,425 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Pay vs Performance Disclosure | |||
Net income applicable to common shareholders | $ 78,760 | $ 176,302 | $ 49,586 |
Insider Trading Arrangements
Insider Trading Arrangements | 12 Months Ended |
Dec. 31, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
DESCRIPTION OF BUSINESS AND S_2
DESCRIPTION OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
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 $186.1 million and $132.8 million of cash in foreign bank accounts at December 31, 2023 and 2022, 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 credit loss The Company carries its accounts receivable at their face amounts less an allowance for credit loss. An allowance for credit loss is recorded based upon the best estimate of credit losses in accounts receivable. In order to monitor credit risks associated with our customer base, credit worthiness of our existing customer base is reviewed on a periodic basis. At the end of each reporting period, the allowance for credit loss is reviewed relative to management's collectability assessment and adjusted if deemed necessary. The factors considered in this review include 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. Our 7.0% senior secured notes due 2028 (the senior secured notes due 2028) were carried at cost of $396.3 million at December 31, 2023. The fair value of the senior secured notes due 2028 at December 31, 2023, as obtained through an independent pricing source, was approximately $401.4 million. |
Equity Method Investments [Policy Text Block] | Investments 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 carrying value of these investments was $7.1 million and $6.9 million as of December 31, 2023, and December 31, 2022, respectively. 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 dollars. 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. Hyperinflation in Argentina and Turkey In July 2018 and March 2022, the three-year cumulative rate of inflation for consumer prices and wholesale prices reached a level in excess of 100% for Argentina and Turkey, respectively. As a result, in accordance with ASC 830 Foreign Currency Matters, Argentina and Turkey were considered hyperinflationary economies and the Company applied the standard for the year ended December 31, 2023. The impacts of hyperinflation in Argentina and Turkey were not material in the prior periods since Argentina and Turkey became hyperinflationary economies. In accordance with ASC 830, the Argentine and Turkish subsidiary's nonmonetary assets and liabilities, as well as related expenses such as depreciation, are remeasured into US dollars by applying the foreign exchange rate as of the date each respective entity became hyperinflationary. Monetary assets and liabilities are remeasured into US dollars using the current exchange rates as of December 31, 2023. Any resulting gains or losses on these monetary assets and liabilities are reported in net income within the consolidated statements of operations. Upon the application of ASC 830 during the year ended December 31, 2023, the Company recognized a net monetary loss of $15.5 million recorded in foreign exchange (loss) gain in the consolidated statements of operations. Of the $15.5 million recorded, $7.3 million relates to the foreign exchange loss with the offset to accumulated other comprehensive income (loss) for the prior period's impact of the application of hyperinflation accounting in Argentina and Turkey. The Company recorded the prior period impact in the current year financial statements as the impact of this out of period adjustment, individually and in the aggregate, was not material to any previously reported quarterly or annual financial statements and is not material to the 2023 annual financial statements. |
Revenue recognition | Revenue recognition The Company derives revenues primarily from the sale of wheels, tires, tires/wheels assemblies, and undercarriage systems and components. The Company follows the five-step model to determine when to recognize revenue: (1) identify the contract(s) with the customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; (5) recognize revenue when the entity satisfies a performance obligation. In most arrangements within the Company, contracts with the customer are identified through the receipt of a purchase order, which also define the terms of the contract including the performance obligations or products to be sold, and specific transaction prices associated with the products. In some other arrangements, a master agreement exists that defines pertinent contract terms such as products and price. Purchase orders are then issued under the master agreement for specific quantities of products, which are fulfilled at the specified price at a given point in time. Generally, the Company’s performance obligations under the contracts are satisfied when there is transfer of control of the products to our customers, which is primarily upon shipment or, in certain instances, upon delivery of the products to the named customer location. The payment terms and conditions in our contracts vary and are customary within the geographies that we serve. As the Company’s standard payment terms are less than one year, the Company has elected the practical expedient under ASC 606-10-32-18 to not assess whether a contract has a significant financing component. Revenues are stated net of returns, discounts and allowances, which are determined based on historical experience. Customer discounts and allowances, consisting primarily of volume discounts and other short-term incentive programs, are recorded as a reduction of revenue at the time of sale because these allowances reflect a reduction in the transaction price. Costs to obtain or fulfill a contract with a customer, such as sales commissions to agents and internal sales employees, are recognized as an expense when incurred since the amortization period would be one year or less. Shipping and handling costs are included as a component of cost of sales. Revenue derived from shipping and handling costs billed to customers is included in sales. |
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 expense |
Research and development expense | Research and development expense |
Advertising | Advertising Advertising expenses are included in SG&A expense and are expensed as incurred. Advertising costs were approximately $3.3 million, $3.0 million and $2.7 million for the years ended December 31, 2023, 2022, and 2021, 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 8 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 liabilities |
Stock-based compensation | Stock-based compensation 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 571,530, 552,992 and 438,195 restricted stock shares in 2023, 2022 and 2021, respectively. See Note 19 for additional information. |
Use of estimates | Use of estimates |
New Accounting Pronouncements, Policy [Policy Text Block] | Adoption of new accounting standards In September 2022, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2022-04, Liabilities—Supplier Finance Programs (Subtopic 405-50) Disclosure of Supplier Finance Program Obligations ("ASU No. 2022-04"). The ASU requires that a buyer in a supplier finance program disclose sufficient information about the program to allow a user of financial statements to understand the program’s nature, activity during the period, and potential magnitude. The amendments in this ASU will be applied retrospectively to each period in which a balance sheet is presented, with the exception of a new requirement to disclose a rollforward of program activity, which will be applied prospectively. The amendments in the ASU are effective for fiscal years beginning after December 15, 2022, with early adoption permitted. The Company adopted the impact of this ASU effective March 31, 2023 and incorporated the required disclosures within Note 1 to condensed consolidated financial statements. New accounting pronouncements to be adopted in future periods In November 2023, the FASB issued ASU 2023-07, Improvements to Reportable Segment Disclosures, which expands reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The amendments in the ASU require, among other things, disclosure of significant segment expenses that are regularly provided to an entity's chief operating decision maker (“CODM”) and a description of other segment items (the difference between segment revenue less the segment expenses disclosed under the significant expense principle and each reported measure of segment profit or loss) by reportable segment, as well as disclosure of the title and position of the CODM, and an explanation of how the CODM uses the reported measure(s) of segment profit or loss in assessing segment performance and deciding how to allocate resources. Annual disclosures are required for fiscal years beginning after December 15, 2023 and interim disclosures are required for periods within fiscal years beginning after December 15, 2024. Retrospective application is required, and early adoption is permitted. These requirements are not expected to have an impact on our financial statements, but will result in significantly expanded reportable segment disclosures. In December 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosures, which requires disclosure of disaggregated income taxes paid, prescribes standard categories for the components of the effective tax rate reconciliation, and modifies other income tax-related disclosures. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024, may be applied prospectively or retrospectively, and allows for early adoption. These requirements will impact our income tax disclosures. |
DESCRIPTION OF BUSINESS AND S_3
DESCRIPTION OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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, 2023 and 2022, consisted of the following (amounts in thousands): 2023 2022 Land and improvements $ 42,140 $ 40,330 Buildings and improvements 243,241 237,507 Machinery and equipment 628,975 588,857 Tools, dies, and molds 116,328 112,990 Construction-in-process 29,744 29,291 1,060,428 1,008,975 Less accumulated depreciation (738,734) (712,370) $ 321,694 $ 296,605 |
ACCOUNTS RECEIVABLE (Tables)
ACCOUNTS RECEIVABLE (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Receivables [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | Accounts receivable at December 31, 2023 and 2022, consisted of the following (amounts in thousands): 2023 2022 Accounts receivable $ 224,485 $ 272,928 Allowance for credit losses (5,340) (6,170) Accounts receivable, net $ 219,145 $ 266,758 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current [Table Text Block] | Inventories at December 31, 2023 and 2022, consisted of the following (amounts in thousands): 2023 2022 Raw material $ 108,504 $ 128,170 Work-in-process 39,921 42,468 Finished goods 216,731 226,585 $ 365,156 $ 397,223 |
PREPAID AND OTHER CURRENT ASS_2
PREPAID AND OTHER CURRENT ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Prepaid Expense and Other Assets, Current [Abstract] | |
Schedule of Other Assets [Table Text Block] | Prepaid and other current assets at December 31, 2023 and 2022, consisted of the following (amounts in thousands): 2023 2022 Value added tax and duty receivable, including tax credits $ 15,255 $ 38,604 Factory supplies 24,472 22,553 Prepaid expense 20,783 19,062 Prepaid taxes 2,144 2,596 Deposits 1,338 1,388 Contract receivable 1,213 578 Other 7,024 1,289 $ 72,229 $ 86,070 |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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, 2023 and 2022, consisted of the following (amounts in thousands): 2023 2022 Land and improvements $ 42,140 $ 40,330 Buildings and improvements 243,241 237,507 Machinery and equipment 628,975 588,857 Tools, dies, and molds 116,328 112,990 Construction-in-process 29,744 29,291 1,060,428 1,008,975 Less accumulated depreciation (738,734) (712,370) $ 321,694 $ 296,605 |
OTHER ASSETS (Tables)
OTHER ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Other Assets, Noncurrent Disclosure [Abstract] | |
Schedule of Other Assets, Noncurrent [Table Text Block] | Other long-term assets at December 31, 2023 and 2022, consisted of the following (amounts in thousands): 2023 2022 Net pension asset $ 19,566 $ 11,241 Prepaid software 5,879 5,468 Investments in nonconsolidated affiliates 7,127 6,948 Manufacturing spares 2,089 1,683 Amortizable intangibles 1,387 1,610 Deferred financing costs 195 264 Other 4,539 3,515 $ 40,782 $ 30,729 |
OTHER CURRENT LIABILITIES (Tabl
OTHER CURRENT LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Other Liabilities, Current [Abstract] | |
Schedule of Accrued Liabilities [Table Text Block] | Other current liabilities at December 31, 2023 and 2022, consisted of the following (amounts in thousands): 2023 2022 Compensation and benefits $ 47,543 $ 45,389 Warranty 21,710 19,914 Accrued insurance benefits 19,162 21,154 Customer rebates and deposits 15,490 16,279 Accrued other taxes 13,762 18,549 Operating lease current liabilities 5,021 3,850 Accrued interest 4,955 5,040 Foreign government grant (a) 4,509 1,888 Settlement of legal matter (b) — 1,260 Other 22,109 18,605 $ 154,261 $ 151,928 (a) For the year ended December 31, 2023, the Company received government subsidies associated with current year capital expenditure investments in technological and digital innovation in Europe. The amount of the government subsidy is used to offset existing payables to government in the future. In addition, during August 2014, the Company received an approximately $17.0 million capital grant from the Italian government for asset damages related to the earthquake that occurred in May 2012 at one of our Italian subsidiaries. The grant was recorded as deferred income in non-current liabilities which is being amortized over the life of the reconstructed building. There are no specific stipulations associated with the government grant. |
WARRANTY (Tables)
WARRANTY (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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): 2023 2022 Warranty liability, January 1 $ 19,914 $ 16,628 Provision for warranty liabilities 14,478 14,656 Warranty payments made (12,682) (11,370) Warranty liability, December 31 $ 21,710 $ 19,914 |
REVOLVING CREDIT FACILITY AND_2
REVOLVING CREDIT FACILITY AND LONG-TERM DEBT (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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, 2023 Principal Balance Unamortized Debt Issuance Net Carrying Amount 7.00% senior secured notes due 2028 $ 400,000 $ (3,723) $ 396,277 Titan Europe credit facilities 22,568 — 22,568 Other debt 7,246 — 7,246 Total debt 429,814 (3,723) 426,091 Less amounts due within one year 16,913 — 16,913 Total long-term debt $ 412,901 $ (3,723) $ 409,178 December 31, 2022 Principal Balance Unamortized Debt Issuance Net Carrying Amount 7.00% senior secured notes due 2028 $ 400,000 $ (4,599) $ 395,401 Titan Europe credit facilities 37,362 — 37,362 Other debt 12,855 — 12,855 Total debt 450,217 (4,599) 445,618 Less amounts due within one year 30,857 — 30,857 Total long-term debt $ 419,360 $ (4,599) $ 414,761 |
Schedule of Maturities of Long-term Debt [Table Text Block] | Aggregate maturities of total debt at December 31, 2023, for each of the years (or other periods) set forth below were as follows (amounts in thousands): 2024 $ 16,956 2025 3,362 2026 3,607 2027 1,388 2028 400,613 Thereafter 3,888 $ 429,814 |
OTHER LONG-TERM LIABILITIES (Ta
OTHER LONG-TERM LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Other Liabilities, Noncurrent [Abstract] | |
Schedule of Other Assets and Other Liabilities [Table Text Block] | Other long-term liabilities at December 31, 2023 and 2022, consisted of the following (amounts in thousands): 2023 2022 Accrued pension liabilities $ 12,795 $ 13,877 Foreign government grant (a) 12,383 11,797 Operating lease long-term liabilities 6,153 2,409 Income tax liabilities 35 43 Other 6,677 9,019 $ 38,043 $ 37,145 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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 Gain (Loss) on Derivatives Unrecognized Total Balance at January 1, 2022 $ (236,059) $ (39) $ (10,382) $ (246,480) Currency translation adjustments (7,653) — — (7,653) Reclassification adjustments: Defined benefit pension plan adjustments, net of tax of $(383) — — 1,115 1,115 Derivative gain — 1,263 — 1,263 Balance at December 31, 2022 (243,712) 1,224 (9,267) (251,755) Currency translation adjustments 26,257 — — 26,257 Reclassification adjustments: Defined benefit pension plan adjustments, net of tax of $(2,663) — — 6,939 6,939 Derivative loss — (484) — (484) Balance at December 31, 2023 $ (217,455) $ 740 $ (2,328) $ (219,043) |
VARIABLE INTEREST ENTITIES (Tab
VARIABLE INTEREST ENTITIES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Variable Interest Entity, Measure of Activity [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, 2023 and 2022 (amounts in thousands): 2023 2022 Cash and cash equivalents $ 355 $ 1,729 Inventory 1,431 2,581 Other current assets 2,364 4,179 Property, plant, and equipment, net 2,477 4,657 Other non-current assets 222 465 Total assets $ 6,849 $ 13,611 Current liabilities 1,117 2,077 Other long-term liabilities 869 1,062 Total liabilities $ 1,986 $ 3,139 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 variable interests in certain VIEs that 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 related to 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, 2023 and 2022 (amounts in thousands): 2023 2022 Investments $ 7,127 $ 6,827 Total VIE assets 7,127 6,827 Accounts payable to the non-consolidated VIEs 3,578 3,936 Maximum exposure to loss $ 10,705 $ 10,763 |
OTHER INCOME (EXPENSE) (Tables)
OTHER INCOME (EXPENSE) (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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): 2023 2022 2021 Income on indirect taxes (a) $ 475 $ 32,043 $ — Loss on sale of Australia wheel business (b) — (10,890) — Proceeds from government grant (c) 319 1,324 — Gain on legal settlement (d) — — 1,750 Equity investment income 1,158 859 806 Gain on sale of assets 246 216 257 Other income (expense) 430 1,868 (727) $ 2,628 $ 25,420 $ 2,086 (a) In May 2022 and September 2022, the Brazilian tax authorities approved indirect tax credits to be applied against future tax obligations. Refer to Footnote 17 for additional information. (b) The loss on sale of the Australian wheel business is comprised primarily of the release of the cumulative translation adjustment of approximately $10.0 million and closing costs associated with the completion of the transaction of approximately $0.9 million. Refer to Footnote 1 for additional information. (c) For the year ended December 31, 2023, the Company received government subsidies associated with current year capital expenditure investments in technological and digital innovation in Europe, of which $0.3 million was recorded as other income. In addition, during August 2014, the Company received approximately $17.0 million capital grant from the Italian government for asset damages related to the earthquake that occurred in May 2012 at one of our Italian subsidiaries. The grant was recorded as deferred income in non-current liabilities which is being amortized over the life of the reconstructed building. There are no specific stipulations associated with the government grant. The Company received proceeds of an additional $1.9 million from the grant for the year ended December 31, 2022, of which $1.3 million was recorded as other income to match to the historical depreciation recorded on the underlying assets. Refer to Footnote 7 for additional information. (d) The gain on legal settlement relates to proceeds received from a steel supplier for the year ended December 31, 2021. |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block] | Income before income taxes, consisted of the following for the years set forth below (amounts in thousands): 2023 2022 2021 Domestic $ 20,809 $ 73,361 $ (5,862) Foreign 88,939 128,992 56,902 $ 109,748 $ 202,353 $ 51,040 |
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): 2023 2022 2021 Current Federal $ (217) $ (55) $ (933) State 1,341 1,897 (160) Foreign 26,999 44,710 16,422 28,123 46,552 15,329 Deferred Federal (2,513) (14,953) — State 1,186 (10,959) — Foreign (754) 2,527 (14,180) (2,081) (23,385) (14,180) Income tax provision $ 26,042 $ 23,167 $ 1,149 |
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 income as a result of the following: 2023 2022 2021 Statutory U.S. federal tax rate 21.0 % 21.0 % 21.0 % Unrecognized tax positions — (0.3) (1.1) Foreign tax rate and income differential 9.6 11.7 13.0 Valuation allowance (3.5) (23.4) (33.9) State taxes, net 1.2 2.0 3.7 Nondeductible royalty 0.8 0.5 1.9 Federal Benefit of Notice 2023-55 (5.2) — — Equity based compensation — (0.3) (1.0) Nondeductible interest — — 1.5 Other, net (0.2) 0.2 (2.8) Effective tax rate 23.7 % 11.4 % 2.3 % |
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, 2023 and 2022, were as follows (amounts in thousands): 2023 2022 Deferred tax assets: Net operating loss carryforwards $ 115,336 $ 117,646 Inventory 8,492 7,001 Warranty 6,496 5,587 Employee benefits and related costs 8,130 8,394 Prepaid royalties 1,576 2,145 Interest limitation 17,851 16,361 Lease liability 4,390 3,951 Intangible assets 1,592 1,105 Other 15,322 14,045 Deferred tax assets 179,185 176,235 Deferred tax liabilities: Fixed assets (11,577) (11,978) Lease assets (4,384) (3,869) Pension (3,740) (1,169) Other (4,150) (2,851) Deferred tax liabilities (23,851) (19,867) Subtotal 155,334 156,368 Valuation allowance (119,535) (121,057) Net deferred tax asset (liability) $ 35,799 $ 35,311 |
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): 2023 2022 2021 Balance at January 1 $ 30 $ 540 $ 1,012 Increases to tax positions taken during the current year — — — Increases to tax positions taken during the prior years — — — Decreases to tax positions taken during prior years — — — Decreases due to lapse of statutes of limitations (7) (506) (473) Settlements — — — Foreign exchange — (4) 1 Balance at December 31 $ 23 $ 30 $ 540 |
EMPLOYEE BENEFIT PLANS (Tables)
EMPLOYEE BENEFIT PLANS (Tables) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
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, 2023 and 2022 (amounts in thousands): Change in benefit obligation: 2023 2022 Benefit obligation at beginning of year $ 79,379 $ 106,587 Plan amendments 1,391 — Service cost 606 590 Interest cost 4,331 2,872 Disposition of Australia benefit obligation — (853) Actuarial gain (632) (19,991) Benefits paid (7,588) (8,866) Foreign currency translation (279) (960) Benefit obligation at end of year $ 77,208 $ 79,379 Change in plan assets: Fair value of plan assets at beginning of year $ 75,025 $ 97,007 Actual return on plan assets 14,558 (14,179) Employer contributions 442 436 Benefits paid (7,294) (8,228) Foreign currency translation 38 (11) Fair value of plan assets at end of year $ 82,769 $ 75,025 Funded (unfunded) status at end of year $ 5,561 $ (4,354) Amounts recognized in Consolidated Balance Sheet: Noncurrent assets $ 19,566 $ 11,241 Current liabilities (1,210) (1,718) Noncurrent liabilities (12,795) (13,877) Net amount recognized in the Consolidated Balance Sheet $ 5,561 $ (4,354) | |
Schedule of Accumulated and Projected Benefit Obligations | Information for pension plans with accumulated benefit obligations and projected benefit obligations in excess of plan assets were (amounts in thousands): 2023 2022 Pension Plans in which Accumulated Benefit Obligation Exceeds Plan Assets at December 31, Accumulated benefit obligation $ 44,976 $ 45,225 Fair value of plan assets $ 31,903 $ 30,558 Accumulated Benefit Obligation at December 31 $ 76,746 $ 78,853 Pension Plans in which Projected Benefit Obligation Exceeds Plan Assets at December 31, Projected benefit obligation $ 45,439 $ 45,751 Fair value of plan assets $ 31,903 $ 30,558 Projected Benefit Obligation at December 31 $ 77,208 $ 79,379 | |
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: 2023 2022 Unrecognized prior service cost $ 634 $ 643 Unrecognized net loss (11,480) (21,091) Deferred tax effect of unrecognized items 8,518 11,181 Net amount recognized in accumulated other comprehensive loss $ (2,328) $ (9,267) | |
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: 2023 2022 Discount rate 5.2 % 5.8 % Expected long-term return on plan assets 6.5 % 6.5 % The weighted-average assumptions used in the actuarial computation that derived net periodic pension cost for the years ended December 31, 2023, 2022, and 2021 were as follows: 2023 2022 2021 Discount rate 5.8 % 2.7 % 1.4 % | |
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, 2023, 2022, and 2021 (amounts in thousands): Components of net periodic benefit cost and other Net periodic benefit cost: 2023 2022 2021 Service cost $ 606 $ 590 $ 655 Interest cost 4,331 2,872 2,880 Assumed return on assets (4,669) (6,071) (6,024) Amortization of unrecognized prior service cost (114) (85) (95) Amortization of net unrecognized loss 1,004 1,426 2,805 Net periodic pension cost (benefit) $ 1,158 $ (1,268) $ 221 | |
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 2023 2022 2023 U.S. equities (a) 57 % 62 % 40% - 80% Fixed income 21 % 23 % 20% - 50% Cash and cash equivalents 10 % 8 % 0% - 20% International equities (a) 12 % 7 % 0% - 16% 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, 2023 Total Level 1 Level 2 Level 3 Money market funds $ 8,186 $ 8,186 $ — $ — Common stock 27,658 27,658 — — Bonds and securities 10,302 10,302 — — Mutual and insurance funds 36,623 35,828 795 — Totals $ 82,769 $ 81,974 $ 795 $ — Fair Value Measurements as of December 31, 2022 Total Level 1 Level 2 Level 3 Money market funds $ 5,377 $ 5,377 $ — $ — Common stock 29,759 29,759 — — Bonds and securities 4,891 4,891 — — Mutual and insurance funds 34,998 34,084 914 — Totals $ 75,025 $ 74,111 $ 914 $ — | Fair Value Measurements as of December 31, 2022 Total Level 1 Level 2 Level 3 Money market funds $ 5,377 $ 5,377 $ — $ — Common stock 29,759 29,759 — — Bonds and securities 4,891 4,891 — — Mutual and insurance funds 34,998 34,084 914 — Totals $ 75,025 $ 74,111 $ 914 $ — |
Schedule of Expected Benefit Payments [Table Text Block] | Projected benefit payments from the plans as of December 31, 2023, are estimated as follows (amounts in thousands): 2024 $ 8,235 2025 7,471 2026 7,273 2027 6,793 2028 7,006 2029-2033 29,080 |
STOCK COMPENSATION (Tables)
STOCK COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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, 2023: Shares Subject Weighted-Average Aggregate Intrinsic Value (in thousands) Exercise Price Remaining Contractual Life (in Years) Outstanding, December 31, 2022 408,200 $ 13.45 3.16 Granted — — Exercised — — Forfeited/Expired (60,000) 24.07 Outstanding, December 31, 2023 348,200 $ 11.62 2.64 $ 1,223 Exercisable, December 31, 2023 348,200 $ 11.62 2.64 $ 1,223 |
Share-based Payment Arrangement, Restricted Stock Unit, Activity [Table Text Block] | A summary of RSU and PSU activity for the year ended December 31, 2023, is presented in the following table: RSU PSU Total Shares Weighted-Average Grant Date Fair Value Unvested at December 31, 2022 (a) 876,888 328,948 1,205,836 $ 10.37 Granted 571,530 — 571,530 11.50 Vested (453,439) — (453,439) 8.99 Forfeited/Expired (21,333) — (21,333) 11.54 Unvested at December 31, 2023 973,646 328,948 1,302,594 $ 11.33 |
LEASE COMMITMENTS (Tables)
LEASE COMMITMENTS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Lease, Cost [Table Text Block] | Supplemental balance sheet information related to leases was as follows (amounts in thousands): Balance Sheet Classification 2023 Operating lease ROU assets Operating lease assets $ 11,955 Operating lease current liabilities Other current liabilities $ 5,021 Operating lease long-term liabilities Other long-term liabilities 6,153 Total operating lease liabilities $ 11,174 Finance lease, gross Property, plant & equipment, net $ 5,175 Finance lease accumulated depreciation Property, plant & equipment, net (3,489) Finance lease, net $ 1,686 Finance lease current liabilities Other current liabilities $ 1,093 Finance lease long-term liabilities Other long-term liabilities 1,321 Total finance lease liabilities $ 2,414 |
Finance Lease, Liability, Maturity [Table Text Block] | At December 31, 2023, maturity of lease liabilities were as follows (amounts in thousands): Operating Leases Finance Leases 2024 $ 5,302 $ 1,185 2025 3,315 787 2026 2,592 528 2027 533 83 2028 251 14 Thereafter 411 — Total future minimum lease payments $ 12,404 $ 2,597 Less imputed interest 1,230 183 $ 11,174 $ 2,414 Weighted average remaining lease term (in years) 3.18 2.41 |
Lessee, Operating Lease, Liability, Maturity | At December 31, 2023, maturity of lease liabilities were as follows (amounts in thousands): Operating Leases Finance Leases 2024 $ 5,302 $ 1,185 2025 3,315 787 2026 2,592 528 2027 533 83 2028 251 14 Thereafter 411 — Total future minimum lease payments $ 12,404 $ 2,597 Less imputed interest 1,230 183 $ 11,174 $ 2,414 Weighted average remaining lease term (in years) 3.18 2.41 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Other Commitments [Line Items] | |
Other Commitments [Table Text Block] | At December 31, 2023, the Company's expected cash outflow resulting from non-cancellable purchase obligations are summarized by year in the table below (amounts in thousands): 2024 $ 37,688 2025 869 2026 4 Total non-cancellable purchase obligations $ 38,561 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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, 2023, 2022, and 2021 (amounts in thousands): 2023 2022 2021 Revenues from external customers Agricultural $ 980,537 $ 1,192,239 $ 949,400 Earthmoving/construction 687,758 807,356 693,350 Consumer 153,505 169,785 137,465 $ 1,821,800 $ 2,169,380 $ 1,780,215 Gross profit Agricultural $ 163,026 $ 193,585 $ 135,807 Earthmoving/construction 110,690 135,788 83,705 Consumer 32,133 31,337 18,030 $ 305,849 $ 360,710 $ 237,542 Income from operations Agricultural $ 100,642 $ 130,474 $ 77,666 Earthmoving/construction 55,122 79,810 27,809 Consumer 22,380 22,843 9,553 Corporate & Unallocated (29,417) (27,325) (29,853) Income from operations 148,727 205,802 85,175 Interest expense (18,785) (29,796) (32,221) Loss on senior note repurchase — — (16,020) Foreign exchange (loss) gain (22,822) 927 12,020 Other income, net 2,628 25,420 2,086 Income before income taxes $ 109,748 $ 202,353 $ 51,040 Capital expenditures Agricultural $ 32,306 $ 25,738 $ 20,749 Earthmoving/construction 23,249 17,576 15,014 Consumer 5,244 3,660 3,039 $ 60,799 $ 46,974 $ 38,802 Depreciation & amortization Agricultural $ 21,405 $ 22,645 $ 25,082 Earthmoving/construction 15,185 15,337 18,428 Consumer 3,404 3,226 3,621 Corporate & Unallocated 2,440 1,539 860 $ 42,434 $ 42,747 $ 47,991 Total assets Agricultural $ 559,607 $ 548,523 $ 517,528 Earthmoving/construction 497,508 538,064 502,373 Consumer 155,602 133,213 133,906 Corporate & Unallocated (a) 76,528 64,830 28,878 $ 1,289,245 $ 1,284,630 $ 1,182,685 |
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, 2023, 2022, and 2021 was as follows (amounts in thousands): 2023 2022 2021 Net Sales United States $ 814,676 $ 1,074,715 $ 835,985 Europe / CIS 558,677 577,877 479,724 Latin America 354,979 422,439 318,879 Other international 93,468 94,349 145,627 $ 1,821,800 $ 2,169,380 $ 1,780,215 Long-Lived Assets United States $ 107,639 $ 97,112 $ 98,307 Europe / CIS 142,749 138,617 146,547 Latin America 61,169 49,714 42,599 Other international 10,137 11,162 13,656 $ 321,694 $ 296,605 $ 301,109 The table below presents information by products and reportable segments as of and for the years ended December 31, 2023, 2022 and 2021 (amounts in thousands): 2023 Agricultural Segment Earthmoving/Construction Segment Consumer Segment Total Revenues from external customers Wheels and Tires [including assemblies] $ 935,274 $ 258,709 $ 130,297 $ 1,324,280 Undercarriage systems and components 45,263 429,049 23,208 497,520 Total $ 980,537 $ 687,758 $ 153,505 $ 1,821,800 2022 Agricultural Segment Earthmoving/Construction Segment Consumer Segment Total Revenues from external customers Wheels and Tires [including assemblies] $ 1,152,933 $ 329,403 $ 147,307 $ 1,629,643 Undercarriage systems and components 39,306 477,953 22,478 539,737 Total $ 1,192,239 $ 807,356 $ 169,785 $ 2,169,380 2021 Agricultural Segment Earthmoving/Construction Segment Consumer Segment Total Revenues from external customers Wheels and Tires [including assemblies] $ 913,065 $ 292,553 $ 116,405 $ 1,322,023 Undercarriage systems and components 36,335 400,797 21,060 458,192 Total $ 949,400 $ 693,350 $ 137,465 $ 1,780,215 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Earnings per share for 2023, 2022, and 2021 were as follows (amounts in thousands, except per share data): 2023 2022 2021 Net income applicable to common shareholders $ 78,760 $ 176,302 $ 49,586 Determination of shares: Weighted average shares outstanding (basic) 62,452 63,040 62,100 Effect of restricted stock and stock options 509 651 585 Weighted average shares outstanding (diluted) 62,961 63,691 62,685 Earnings per share: Basic $ 1.26 $ 2.80 $ 0.80 Diluted $ 1.25 $ 2.77 $ 0.79 |
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, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Deposits, Foreign | $ 186,100 | $ 132,800 | |
Retained earnings | 169,623 | 90,863 | |
Loss from operations | 148,727 | 205,802 | $ 85,175 |
Provision (benefit) for income tax | 26,042 | 23,167 | 1,149 |
Net income (loss) | $ 83,706 | $ 179,186 | $ 49,891 |
Basic | $ 1.26 | $ 2.80 | $ 0.80 |
Inventory | $ 365,156 | $ 397,223 | |
Senior Notes | 396,300 | ||
Debt Instrument, Fair Value Disclosure | 401,400 | ||
Research and Development Expense | 12,539 | 10,404 | $ 10,104 |
Advertising Expense | $ 3,300 | 3,000 | $ 2,700 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures | 0 | ||
Other current liabilities | $ 154,261 | 151,928 | |
Noncontrolling interests | $ 355 | $ 1,902 | |
Restricted stock awards (in shares) | 571,530 | 552,992 | 438,195 |
Equity Method Investments | $ 7,100 | $ 6,900 | |
Percent of Consolidated Assets | 7% | ||
Percent of Consolidated Sales | 6% | ||
Concentration Risk, Customer | 40 | 43 | |
Amount Recognized in Income Due to Inflationary Accounting | $ 15,500 | ||
Obligation under Supplier Finance Agreement | 7,400 | $ 11,800 | |
Revision of Prior Period, Adjustment | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Amount Recognized in Income Due to Inflationary Accounting | $ 7,300 | ||
John Deere | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Concentration Risk, Customer | 13 | 15 | |
Senior Secured Notes 7.00 Percent | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Debt Instrument, Interest Rate, Stated Percentage | 7% | ||
Senior Notes | $ 400,000 | $ 400,000 | |
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 | 40 years | ||
Maximum [Member] | Machinery and Equipment [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Property, Plant and Equipment, Useful Life, Maximum | 20 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 | 9 years |
ACCOUNTS RECEIVABLE (Details)
ACCOUNTS RECEIVABLE (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Receivables [Abstract] | ||
Accounts receivable | $ 224,485 | $ 272,928 |
Allowance for credit losses | (5,340) | (6,170) |
Accounts receivable, net | $ 219,145 | $ 266,758 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Inventory Disclosure [Abstract] | ||
Raw material | $ 108,504 | $ 128,170 |
Work-in-process | 39,921 | 42,468 |
Finished goods | 216,731 | 226,585 |
Inventory, Net, Total | $ 365,156 | $ 397,223 |
PREPAID AND OTHER CURRENT ASS_3
PREPAID AND OTHER CURRENT ASSETS (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Prepaid Expense and Other Assets, Current [Abstract] | ||
Value added tax | $ 15,255 | $ 38,604 |
Factory supplies | 24,472 | 22,553 |
Prepaid expense | 20,783 | 19,062 |
Prepaid taxes | 2,144 | 2,596 |
Deposits | 1,338 | 1,388 |
Investments for deferred compensation | 1,213 | 578 |
Other | 7,024 | 1,289 |
Prepaid and other current assets | $ 72,229 | $ 86,070 |
PROPERTY, PLANT AND EQUIPMENT_3
PROPERTY, PLANT AND EQUIPMENT, NET (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | $ 1,060,428 | $ 1,008,975 | |
Less accumulated depreciation | (738,734) | (712,370) | |
Property, Plant and Equipment, Net | 321,694 | 296,605 | |
Depreciation | 41,000 | 41,500 | $ 46,400 |
Total assets | 1,289,245 | 1,284,630 | $ 1,182,685 |
Land and Land Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 42,140 | 40,330 | |
Building and Building Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 243,241 | 237,507 | |
Machinery and Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 628,975 | 588,857 | |
Tools, Dies and Molds [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 116,328 | 112,990 | |
Construction in Progress [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | $ 29,744 | $ 29,291 |
OTHER ASSETS (Details)
OTHER ASSETS (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Other Assets, Noncurrent [Abstract] | ||
Equity Method Investments | $ 7,100 | $ 6,900 |
Prepaid software | 5,879 | 5,468 |
Manufacturing spares | 1,387 | 1,610 |
Investment in Wheels India Limited | 2,089 | 1,683 |
Notes receivable | 195 | 264 |
Other | 4,539 | 3,515 |
Assets for Plan Benefits, Defined Benefit Plan | 19,566 | 11,241 |
Other long-term assets | 40,782 | 30,729 |
Equity Method Investments [Member] | ||
Other Assets, Noncurrent [Abstract] | ||
Equity Method Investments | $ 7,127 | $ 6,948 |
OTHER CURRENT LIABILITIES (Deta
OTHER CURRENT LIABILITIES (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Other Liabilities, Current [Abstract] | ||
Employee-related Liabilities, Current | $ 47,543 | $ 45,389 |
Product Warranty Accrual, Current | 21,710 | 19,914 |
Accrued Insurance, Current | 19,162 | 21,154 |
Contract with Customer, Liability | 15,490 | 16,279 |
Accrued other taxes | 13,762 | 18,549 |
Operating Lease, Liability, Current | 5,021 | 3,850 |
Accrued interest | 4,955 | 5,040 |
Deferred Revenue, Current | 4,509 | 1,888 |
Loss Contingency Accrual | 0 | 1,260 |
Other Accrued Liabilities, Current | 22,109 | 18,605 |
Other current liabilities | $ 154,261 | $ 151,928 |
WARRANTY (Details)
WARRANTY (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Product Warranties Disclosures [Abstract] | ||
Warranty liability, January 1 | $ 19,914 | $ 16,628 |
Provision for warranty liabilities | 14,478 | 14,656 |
Warranty payments made | (12,682) | (11,370) |
Warranty liability, December 31 | $ 21,710 | $ 19,914 |
REVOLVING CREDIT FACILITY AND_3
REVOLVING CREDIT FACILITY AND LONG-TERM DEBT (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Debt Instruments [Abstract] | |||
Senior Notes | $ 396,300 | ||
Debt Instrument, Unamortized Discount | (3,723) | $ (4,599) | |
Debt Instrument, Unamortized Discount (Premium), Net | 3,723 | 4,599 | |
Long-term Debt | 426,091 | 445,618 | |
Long-term Debt, Gross | $ 429,814 | ||
Short-term Debt, Weighted Average Interest Rate, at Point in Time | 6.80% | ||
Maturities of Long-term Debt [Abstract] | |||
2024 | $ 16,956 | ||
2025 | 3,362 | ||
2026 | 3,607 | ||
2027 | 1,388 | ||
2028 | 400,613 | ||
Thereafter | $ 3,888 | ||
Debt Instrument, Interest Rate, Effective Percentage | 7% | ||
Letters of Credit Outstanding, Amount | $ 6,200 | ||
Line of Credit Facility, Current Borrowing Capacity | 90,000 | ||
Short-term debt | 16,913 | 30,857 | |
Debt Instrument, Unamortized Discount, Current | 0 | 0 | |
Long-term Debt and Lease Obligation | 409,178 | 414,761 | |
Loss on senior note repurchase | 0 | 0 | $ 16,020 |
Senior Secured Notes 6.50 Percent [Member] [Member] | |||
Debt Instruments [Abstract] | |||
Senior Notes | $ 400,000 | ||
Titan Europe [Member] | |||
Debt Instruments [Abstract] | |||
Debt Instrument, Unamortized Discount | 0 | 0 | |
Other Borrowings | 22,568 | 37,362 | |
Other Debt Obligations [Member] | |||
Debt Instruments [Abstract] | |||
Debt Instrument, Unamortized Discount | 0 | 0 | |
Maturities of Long-term Debt [Abstract] | |||
Other Long-term Debt | 7,246 | 12,855 | |
Titan Brazil [Member] | |||
Maturities of Long-term Debt [Abstract] | |||
Other Long-term Debt | 7,200 | ||
Senior Secured Notes 7.00 Percent | |||
Debt Instruments [Abstract] | |||
Senior Notes | 400,000 | 400,000 | |
Debt Instrument, Unamortized Discount | (3,723) | (4,599) | |
Long-term Debt | $ 396,277 | 395,401 | |
Maturities of Long-term Debt [Abstract] | |||
Debt Instrument, Interest Rate, Stated Percentage | 7% | ||
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] | |||
Debt Instruments [Abstract] | |||
Long-term Debt, Gross | 412,901 | 419,360 | |
Maturities of Long-term Debt [Abstract] | |||
Debt, Long-Term and Short-Term, Combined Amount | $ 429,814 | $ 450,217 |
OTHER LONG-TERM LIABILITIES (De
OTHER LONG-TERM LIABILITIES (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Other Liabilities, Noncurrent [Abstract] | ||
Accrued pension liabilities | $ 12,795 | $ 13,877 |
Foreign government grant (a) | 12,383 | 11,797 |
Operating lease long-term liabilities | 6,153 | 2,409 |
Income tax liabilities | 35 | 43 |
Other | 6,677 | 9,019 |
Other Liabilities, Noncurrent | $ 38,043 | $ 37,145 |
DERIVATIVE FINANCIAL INSTRUME_2
DERIVATIVE FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification and Tax | $ (0.5) | $ (1.3) | $ 0.4 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||
Currency Translation Adjustments beginning of year | $ (243,712) | $ (236,059) | |
Accumulated Other Comprehensive (Income) Loss, Defined Benefit Plan, after Tax | (9,267) | (10,382) | |
Accumulated Other Comprehensive Income (Loss), Net of Tax | (251,755) | (246,480) | |
Currency translation adjustments | 26,257 | (7,653) | |
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, Tax | (2,663) | (383) | $ 39 |
Unrecognized net gain (loss), net of tax | 6,939 | 1,115 | |
Derivative, Gain on Derivative | 1,263 | 374 | |
Derivative, Loss on Derivative | (484) | ||
Currency Translation Adjustments end of year | (217,455) | (243,712) | (236,059) |
AOCI, Derivative Qualifying as Hedge, Excluded Component, after Tax | $ (740) | $ (1,224) | $ 39 |
STOCKHOLDERS EQUITY (Details)
STOCKHOLDERS EQUITY (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Equity, Attributable to Parent [Abstract] | ||
Stock Repurchase Program, Authorized Amount | $ 50,000 | |
Treasury Stock, Shares, Acquired | 2,653,786 | 4,032,259 |
Treasury Stock, Value, Acquired, Cost Method | $ 32,579 | $ 25,000 |
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 17,400 | |
Payments for Repurchase of Redeemable Noncontrolling Interest | $ 25,000 | |
RDIF [Member] | ||
Equity, Attributable to Parent [Abstract] | ||
Noncontrolling Interest, Ownership Percentage by Parent | 64.30% | |
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 35.70% | |
Noncontrolling Interest [Line Items] | ||
Noncontrolling Interest, Ownership Percentage by Parent | 64.30% | |
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 35.70% |
VARIABLE INTEREST ENTITIES (Det
VARIABLE INTEREST ENTITIES (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Variable Interest Entity [Line Items] | ||||
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents, Including Disposal Group and Discontinued Operations | $ 220,251 | $ 159,577 | $ 98,108 | $ 117,431 |
Inventory | 365,156 | 397,223 | ||
Other current assets | 7,024 | 1,289 | ||
Property, plant, and equipment, net | 321,694 | 296,605 | ||
Total assets | 1,289,245 | 1,284,630 | $ 1,182,685 | |
Current liabilities | 372,375 | 446,161 | ||
Total liabilities | 821,830 | 901,492 | ||
Accounts payable to the non-consolidated VIEs | 201,201 | 263,376 | ||
Variable Interest Entity, Primary Beneficiary [Member] | ||||
Variable Interest Entity [Line Items] | ||||
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents, Including Disposal Group and Discontinued Operations | 355 | 1,729 | ||
Inventory | 1,431 | 2,581 | ||
Other current assets | 2,364 | 4,179 | ||
Property, plant, and equipment, net | 2,477 | 4,657 | ||
Other non-current assets | 222 | 465 | ||
Total assets | 6,849 | 13,611 | ||
Current liabilities | 1,117 | 2,077 | ||
Other long-term liabilities | 869 | 1,062 | ||
Total liabilities | 1,986 | 3,139 | ||
Variable Interest Entity, Not Primary Beneficiary [Member] | ||||
Variable Interest Entity [Line Items] | ||||
Total assets | 7,127 | 6,827 | ||
Investments | 7,127 | 6,827 | ||
Accounts payable to the non-consolidated VIEs | 3,578 | 3,936 | ||
Maximum exposure to loss | $ 10,705 | $ 10,763 | ||
Titan Tire Reclamation Corporation [Member] | ||||
Variable Interest Entity [Line Items] | ||||
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 50% | |||
Wheels India [Member] | ||||
Variable Interest Entity [Line Items] | ||||
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 50% |
ROYALTY EXPENSE (Details)
ROYALTY EXPENSE (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Other Income and Expenses [Abstract] | |||
Royalty Expense | $ 9,645 | $ 11,712 | $ 10,491 |
OTHER INCOME (EXPENSE) (Details
OTHER INCOME (EXPENSE) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Aug. 31, 2014 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Other Income and Expenses [Abstract] | ||||
Brazil Income Tax Adjustment | $ 475 | $ 32,043 | $ 0 | |
Gain (Loss) on Disposition of Business | 0 | (10,890) | 0 | |
Other Nonrecurring Income | 319 | 1,324 | 0 | |
Gain (Loss) Related to Litigation Settlement | 0 | 0 | 1,750 | |
Equity investment income | 1,158 | 859 | 806 | |
Gain on sale of assets | 246 | 216 | 257 | |
Other income (expense) | 430 | 1,868 | (727) | |
Other income | $ 2,628 | 25,420 | $ 2,086 | |
Government Grant | $ 17,000 | $ 1,900 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest [Abstract] | ||||
Domestic | $ 20,809 | $ 73,361 | $ (5,862) | |
Foreign | 88,939 | 128,992 | 56,902 | |
Income before income taxes | 109,748 | 202,353 | 51,040 | |
Income Tax Expense (Benefit), Continuing Operations [Abstract] | ||||
Current Federal Tax Expense (Benefit) | (217) | (55) | (933) | |
Current State and Local Tax Expense (Benefit) | 1,341 | 1,897 | (160) | |
Current Foreign Tax Expense (Benefit) | 26,999 | 44,710 | 16,422 | |
Current Income Tax Expense (Benefit) | 28,123 | 46,552 | 15,329 | |
Deferred Federal Income Tax Expense (Benefit) | (2,513) | (14,953) | 0 | |
Deferred State and Local Income Tax Expense (Benefit) | 1,186 | (10,959) | 0 | |
Deferred Foreign Income Tax Expense (Benefit) | (754) | 2,527 | (14,180) | |
Deferred Federal, State and Local, Tax Expense (Benefit), Total | (2,081) | (23,385) | (14,180) | |
Provision (benefit) for income tax | $ 26,042 | $ 23,167 | $ 1,149 | |
Effective Income Tax Rate, Continuing Operations, Tax Rate Reconciliation [Abstract] | ||||
Statutory U.S. federal tax rate | 21% | 21% | 21% | |
Unrecognized tax positions | 0% | (0.30%) | (1.10%) | |
Foreign tax rate and income differential | 9.60% | 11.70% | 13% | |
Valuation allowance | (3.50%) | (23.40%) | (33.90%) | |
State taxes, net | 1.20% | 2% | 3.70% | |
Nondeductible royalty | 0.80% | 0.50% | 1.90% | |
Federal Benefit of Notice 2023-55 | (5.20%) | 0% | 0% | |
Effective Income Tax Rate Reconciliation, Tax Expense (Benefit), Share-based Payment Arrangement, Percent | 0% | (0.30%) | (1.00%) | |
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Other, Percent | 0% | 0% | 1.50% | |
Other, net | (0.20%) | 0.20% | (2.80%) | |
Effective tax rate | 23.70% | 11.40% | 2.30% | |
Components of Deferred Tax Assets and Liabilities [Abstract] | ||||
Net operating loss carryforwards | $ 115,336 | $ 117,646 | ||
Inventory | 8,492 | 7,001 | ||
Warranty | 6,496 | 5,587 | ||
Employee benefits and related costs | 8,130 | 8,394 | ||
Prepaid royalties | 1,576 | 2,145 | ||
Deferred Tax Asset, Interest Limitation | 17,851 | 16,361 | ||
Deferred Tax Assets, Leasing Arrangements | 4,390 | 3,951 | ||
Deferred Tax Assets, Goodwill and Intangible Assets | 1,592 | 1,105 | ||
Other | 15,322 | 14,045 | ||
Deferred tax assets | 179,185 | 176,235 | ||
Fixed assets | (11,577) | (11,978) | ||
Deferred Tax Liabilities, Leasing Arrangements | (4,384) | (3,869) | ||
Deferred Tax Liability Pension | (3,740) | (1,169) | ||
Other | (4,150) | (2,851) | ||
Deferred tax liabilities | 23,851 | 19,867 | ||
Subtotal | 155,334 | 156,368 | ||
Valuation allowance | (119,535) | (121,057) | ||
Net deferred tax asset (liability) | 35,799 | 35,311 | ||
Deferred Tax Assets, Operating Loss Carryforwards, Subject to Expiration | 1,700 | |||
Deferred Tax Assets, Operating Loss Carryforwards, Not Subject to Expiration | 113,600 | |||
SEC Schedule, 12-09, Valuation Allowances and Reserves, Increase (Decrease) Adjustment | (1,500) | (52,100) | ||
Deferred Tax Assets, Operating Loss Carryforwards, Domestic | 61,600 | |||
Deferred Tax Assets, Operating Loss Carryforwards, State and Local | 290,700 | |||
Deferred Tax Assets, Operating Loss Carryforwards, Foreign | 356,500 | |||
Unrecognized Tax Benefits, Gross | 0 | 0 | $ 100 | |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 0 | |||
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||||
Balance at January 1 | 23 | 30 | 540 | $ 1,012 |
Increases to tax positions taken during the current year | 0 | 0 | 0 | |
Increases to tax positions taken during the prior years | 0 | 0 | 0 | |
Decreases to tax positions taken during prior years | 0 | 0 | 0 | |
Decreases due to lapse of statutes of limitations | (7) | (506) | (473) | |
Settlements | 0 | 0 | 0 | |
Unrecognized Tax Benefits, Increase Resulting from Foreign Currency Translation | 0 | 1 | ||
Unrecognized Tax Benefits, Decrease Resulting from Foreign Currency Translation | (4) | |||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense | 0 | 0 | $ (200) | |
Brazil Income Tax Provision/Expense | $ 2,600 | 16,100 | ||
BRAZIL | ||||
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||||
Brazil Income Tax Provision/Expense | 9,400 | |||
UNITED STATES | ||||
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||||
Brazil Income Tax Provision/Expense | $ 6,700 |
EMPLOYEE BENEFIT PLANS (Details
EMPLOYEE BENEFIT PLANS (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 USD ($) shares | Dec. 31, 2022 USD ($) shares | Dec. 31, 2021 USD ($) shares | ||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Plan Assets, Amount | $ 82,769 | $ 75,025 | ||
Assets for Plan Benefits, Defined Benefit Plan | 19,566 | 11,241 | ||
Liability, Defined Benefit Pension Plan, Noncurrent | (12,795) | (13,877) | ||
Accumulated Other Comprehensive (Income) Loss, Defined Benefit Plan, after Tax | $ (2,328) | $ (9,267) | $ (10,382) | |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Rate of Return on Plan Assets | 6.50% | |||
Defined Benefit Plan, Equity Securities | 100% | 100% | ||
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% | |||
2024 | $ 8,235 | |||
2025 | 7,471 | |||
2026 | 7,273 | |||
2027 | 6,793 | |||
2028 | 7,006 | |||
2029-2033 | $ 29,080 | |||
Defined Contribution Plan, Employer's Matching Contribution of Employee's Gross Pay Allowed to be Matched, Percent | 50% | |||
Defined Contribution Plan, Employer Matching Contribution, Percent | 6% | |||
Stock Issued During Period, Shares, Employee Benefit Plan | shares | 144,439 | 124,645 | 175,267 | |
Defined Contribution Plan, Cost | $ 1,800 | $ 1,700 | $ 1,400 | |
Equity Securities, U.S. [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Equity Securities | [1] | 57% | 62% | |
Fixed Income Funds [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Equity Securities | 21% | 23% | ||
Cash and Cash Equivalents [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Equity Securities | 10% | 8% | ||
Equity Securites, International [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Equity Securities | [1] | 12% | 7% | |
Money Market Funds [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Plan Assets, Amount | $ 8,186 | $ 5,377 | ||
Domestic Common Stock [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Plan Assets, Amount | 27,658 | 29,759 | ||
Debt Security, Corporate, US [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Plan Assets, Amount | 10,302 | 4,891 | ||
525190 Other Insurance Funds [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Plan Assets, Amount | $ 36,623 | $ 34,998 | ||
Parent Common Stock [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Equity Securities | 2% | 3% | ||
Defined Benefit Plan, Equity Securities, Common Stock, Employer, Related Party | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Plan Assets, Employer, Related Party, Amount | $ 1,900 | $ 2,600 | ||
Maximum [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Equity Securities | 80% | |||
Maximum [Member] | Equity Securities, U.S. [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Target Allocation Percentage of Assets, Equity Securities | 80% | |||
Maximum [Member] | Fixed Income Funds [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Target Allocation Percentage of Assets, Equity Securities | 50% | |||
Maximum [Member] | Cash and Cash Equivalents [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Target Allocation Percentage of Assets, Equity Securities | 20% | |||
Maximum [Member] | Equity Securites, International [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Target Allocation Percentage of Assets, Equity Securities | 16% | |||
Minimum [Member] | Equity Securities, U.S. [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Target Allocation Percentage of Assets, Equity Securities | 40% | |||
Minimum [Member] | Fixed Income Funds [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Target Allocation Percentage of Assets, Equity Securities | 20% | |||
Minimum [Member] | Cash and Cash Equivalents [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Target Allocation Percentage of Assets, Equity Securities | 0% | |||
Minimum [Member] | Equity Securites, International [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Target Allocation Percentage of Assets, Equity Securities | 0% | |||
Fair Value, Inputs, Level 1 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Plan Assets, Amount | $ 81,974 | 74,111 | ||
Fair Value, Inputs, Level 1 [Member] | Money Market Funds [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Plan Assets, Amount | 8,186 | 5,377 | ||
Fair Value, Inputs, Level 1 [Member] | Domestic Common Stock [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Plan Assets, Amount | 27,658 | 29,759 | ||
Fair Value, Inputs, Level 1 [Member] | Debt Security, Corporate, US [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Plan Assets, Amount | 10,302 | 4,891 | ||
Fair Value, Inputs, Level 1 [Member] | 525190 Other Insurance Funds [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Plan Assets, Amount | 35,828 | 34,084 | ||
Fair Value, Inputs, Level 2 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Plan Assets, Amount | 795 | 914 | ||
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 | 795 | 914 | ||
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 | ||
Pension Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Benefit Obligation | 77,208 | 79,379 | 106,587 | |
Defined Benefit Plan, Benefit Obligation, Increase (Decrease) for Plan Amendment | 1,391 | 0 | ||
Defined Benefit Plan, Service Cost | 606 | 590 | 655 | |
Defined Benefit Plan, Interest Cost | 4,331 | 2,872 | 2,880 | |
Defined Benefit Plan, Accumulated Benefit Obligation, Increase (Decrease) for Plan Amendment | 0 | (853) | ||
Defined Benefit Plan, Actuarial Net (Gains) Losses | (632) | (19,991) | ||
Defined Benefit Plan, Benefit Obligation, Benefits Paid | 7,588 | 8,866 | ||
Defined Benefit Plan, Foreign Currency Exchange Rate Changes, Benefit Obligation | (279) | (960) | ||
Defined Benefit Plan, Plan Assets, Amount | 82,769 | 75,025 | 97,007 | |
Defined Benefit Plan, Plan Assets, Increase (Decrease) for Actual Return (Loss) | 14,558 | (14,179) | ||
Defined Benefit Plan, Plan Assets, Contributions by Employer | 442 | 436 | ||
Defined Benefit Plan, Benefits Paid (Deprecated 2017-01-31) | (7,294) | (8,228) | ||
Defined Benefit Plan, Plan Assets, Foreign Currency Translation Gain (Loss) | 38 | (11) | ||
Defined Benefit Plan, Funded (Unfunded) Status of Plan | 5,561 | (4,354) | ||
Assets for Plan Benefits, Defined Benefit Plan | 19,566 | 11,241 | ||
Liability, Defined Benefit Pension Plan, Current | (1,210) | (1,718) | ||
Liability, Defined Benefit Pension Plan, Noncurrent | (12,795) | (13,877) | ||
Defined Benefit Plan, Amounts for Asset (Liability) Recognized in Statement of Financial Position | 5,561 | (4,354) | ||
Defined Benefit Plan, Plan with Accumulated Benefit Obligation in Excess of Plan Assets, Accumulated Benefit Obligation | 44,976 | 45,225 | ||
Defined Benefit Plan, Plan with Accumulated Benefit Obligation in Excess of Plan Assets, Plan Assets | 31,903 | 30,558 | ||
Defined Benefit Plan, Accumulated Benefit Obligation | 76,746 | 78,853 | ||
Defined Benefit Plan, Pension Plan with Projected Benefit Obligation in Excess of Plan Assets, Projected Benefit Obligation | 45,439 | 45,751 | ||
Defined Benefit Plan, Pension Plan with Projected Benefit Obligation in Excess of Plan Assets, Plan Assets | 31,903 | 30,558 | ||
Defined Benefit Plan, Accumulated Other Comprehensive (Income) Loss, Prior Service Cost (Credit), before Tax | 634 | 643 | ||
Defined Benefit Plan, Accumulated Other Comprehensive Income (Loss), Gain (Loss), before Tax | (11,480) | (21,091) | ||
Deferred Tax Assets, Tax Deferred Expense, Compensation and Benefits, Postretirement Benefits | 8,518 | 11,181 | ||
Accumulated Other Comprehensive (Income) Loss, Defined Benefit Plan, after Tax | $ (2,328) | $ (9,267) | ||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 5.20% | 5.80% | ||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Benefit Obligations | 6.50% | 6.50% | ||
Defined Benefit Plan, Expected Return (Loss) on Plan Assets | $ (4,669) | $ (6,071) | (6,024) | |
Other Comprehensive Income (Loss), Amortization, Pension and Other Postretirement Benefit Plans, Net Prior Service Cost (Credit) Recognized in Net Periodic Benefit Cost, before Tax | (114) | (85) | (95) | |
Defined Benefit Plan, Amortization of Gain (Loss) | 1,004 | 1,426 | 2,805 | |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) | $ 1,158 | $ (1,268) | $ 221 | |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate | 5.80% | 2.70% | 1.40% | |
Foreign Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Benefit Obligation | $ 13,500 | |||
Defined Benefit Plan, Plan Assets, Amount | 800 | |||
Defined Contribution Plan, Cost | $ 3,700 | $ 4,100 | $ 3,800 | |
Defined Contribution/401k Plans, Total [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Contribution/401k Plans, Number Sponsored by the Company | 2 | |||
Titan Tire, Bryan and Walcott Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Benefit Obligation | $ 63,700 | |||
Defined Benefit Plan, Plan Assets, Amount | $ 82,000 | |||
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 ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation | $ 6,000 | $ 4,300 | $ 4,300 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Shares Subject to Option, beginning of year | 408,200 | ||
Granted | 0 | ||
Exercised | 0 | ||
Forfeited/Expired | (60,000) | ||
Shares Subject to Option, end of year | 348,200 | 408,200 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | 348,200 | ||
Weighted-Average Exercise Price, beginning of year | $ 13.45 | ||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | 0 | ||
Exercised | 0 | ||
Forfeited/Expired | 24.07 | ||
Weighted-Average Exercise Price, end of year | 11.62 | $ 13.45 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price | $ 11.62 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 2 years 7 months 20 days | 3 years 1 month 28 days | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | 2 years 7 months 20 days | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | $ 1,223 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value | $ 1,223 | ||
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 | 1,205,836 | ||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period | 571,530 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | (453,439) | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | (21,333) | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 1,302,594 | 1,205,836 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Intrinsic Value | $ 10.37 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | 11.50 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | 8.99 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | 11.54 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Intrinsic Value | $ 11.33 | $ 10.37 | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Rights, Percentage | 125% | ||
Restricted stock awards (in shares) | 571,530 | 552,992 | 438,195 |
Restricted Stock or Unit Expense | $ 5,100 | $ 3,400 | $ 3,400 |
Deferred Compensation Arrangement with Individual, Allocated Share-based Compensation Expense | 900 | 900 | 900 |
Deferred Compensation Share-based Arrangements, Liability, Current | $ 8,300 | ||
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 | $ 5,100 | $ 6,000 | $ 7,500 |
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 | 3,000,000 | ||
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 | 876,888 | ||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period | 571,530 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | (453,439) | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | (21,333) | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 973,646 | 876,888 | |
Performance Shares | |||
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 | 328,948 | ||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period | 0 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 0 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | 0 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 328,948 | 328,948 |
LITIGATION (Details)
LITIGATION (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Loss Contingencies [Line Items] | ||
Loss Contingency Accrual | $ 0 | $ 1,260 |
LEASE COMMITMENTS (Details)
LEASE COMMITMENTS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Operating Leased Assets [Line Items] | |||
Operating Lease, Expense | $ 5,600 | $ 5,100 | $ 6,100 |
Finance Lease, Right-of-Use Asset, Amortization | 3,000 | 2,600 | $ 3,800 |
Operating Lease, Right-of-Use Asset | 11,955 | 8,932 | |
Operating Lease, Liability, Current | 5,021 | 3,850 | |
Operating lease long-term liabilities | 6,153 | $ 2,409 | |
Operating Lease, Liability | 11,174 | ||
Finance lease, gross | 5,175 | ||
Finance lease accumulated depreciation | 3,489 | ||
Finance lease, net | 1,686 | ||
Finance Lease, Liability, Current | 1,093 | ||
Finance Lease, Liability, Noncurrent | 1,321 | ||
Finance Lease, Liability | $ 2,414 | ||
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Other Liabilities, Current | Other Liabilities, Current | |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Other long-term liabilities | Other long-term liabilities | |
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Other Liabilities | ||
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Property, plant, and equipment, net | ||
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Other Liabilities, Current | ||
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Other long-term liabilities | ||
Finance Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Other Liabilities | ||
Lessee, Operating Lease, Liability, Payment, Due | |||
2024 | $ 5,302 | ||
2025 | 3,315 | ||
2026 | 2,592 | ||
2027 | 533 | ||
2028 | 251 | ||
Thereafter | 411 | ||
Total future minimum lease payments | 12,404 | ||
Less imputed interest | $ 1,230 | ||
Operating Lease, Weighted Average Remaining Lease Term | 3 years 2 months 4 days | ||
Finance Lease, Liability, Payment, Due [Abstract] | |||
2024 | $ 1,185 | ||
2025 | 787 | ||
2026 | 528 | ||
2027 | 83 | ||
2028 | 14 | ||
Thereafter | 0 | ||
Total future minimum lease payments | 2,597 | ||
Less imputed interest | $ 183 | ||
Finance Lease, Weighted Average Remaining Lease Term | 2 years 4 months 28 days | ||
Operating Lease, Payments | $ 6,800 | ||
Finance Lease, Interest Payment on Liability | $ 200 |
COMMITMENTS AND CONTINGENCIES_3
COMMITMENTS AND CONTINGENCIES (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Other Commitments [Line Items] | |
2024 | $ 37,688 |
2025 | 869 |
2026 | 4 |
Total non-cancellable purchase obligations | $ 38,561 |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Segment Reporting Information [Line Items] | ||||
Net sales | $ 1,821,800 | $ 2,169,380 | $ 1,780,215 | |
Gross profit | 305,849 | 360,710 | 237,542 | |
Income (loss) from operations | 148,727 | 205,802 | 85,175 | |
Interest expense | (18,785) | (29,796) | (32,221) | |
Loss on senior note repurchase | 0 | 0 | (16,020) | |
Foreign exchange (loss) gain | (22,822) | 927 | 12,020 | |
Other income | 2,628 | 25,420 | 2,086 | |
Loss before income taxes | 109,748 | 202,353 | 51,040 | |
Segment, Expenditure, Addition to Long-Lived Assets | 60,799 | 46,974 | 38,802 | |
Payments to Acquire Property, Plant, and Equipment | 60,799 | 46,974 | 38,802 | |
Depreciation & amortization | 42,434 | 42,747 | 47,991 | |
Total assets | 1,289,245 | 1,284,630 | 1,182,685 | |
Long-lived Assets | 321,694 | 296,605 | 301,109 | |
Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 1,821,800 | 2,169,380 | 1,780,215 | |
Gross profit | 305,849 | 360,710 | 237,542 | |
Interest expense | (18,785) | (29,796) | (32,221) | |
Foreign exchange (loss) gain | (22,822) | 927 | 12,020 | |
Other income | 2,628 | 25,420 | 2,086 | |
Loss before income taxes | 109,748 | 202,353 | 51,040 | |
Operating Segments [Member] | Wheels and Tires (including assemblies) | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 1,324,280 | 1,629,643 | 1,322,023 | |
Operating Segments [Member] | Undercarriage systems and components | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 497,520 | 539,737 | 458,192 | |
Operating Segments [Member] | Agricultural [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 980,537 | 1,192,239 | 949,400 | |
Gross profit | 163,026 | 193,585 | 135,807 | |
Income (loss) from operations | 100,642 | 130,474 | 77,666 | |
Segment, Expenditure, Addition to Long-Lived Assets | 32,306 | 25,738 | 20,749 | |
Depreciation & amortization | 21,405 | 22,645 | 25,082 | |
Total assets | 559,607 | 548,523 | 517,528 | |
Operating Segments [Member] | Agricultural [Member] | Wheels and Tires (including assemblies) | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 935,274 | 1,152,933 | 913,065 | |
Operating Segments [Member] | Agricultural [Member] | Undercarriage systems and components | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 45,263 | 39,306 | 36,335 | |
Operating Segments [Member] | Earthmoving/construction [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 687,758 | 807,356 | 693,350 | |
Gross profit | 110,690 | 135,788 | 83,705 | |
Income (loss) from operations | 55,122 | 79,810 | 27,809 | |
Segment, Expenditure, Addition to Long-Lived Assets | 23,249 | 17,576 | 15,014 | |
Depreciation & amortization | 15,185 | 15,337 | 18,428 | |
Total assets | 497,508 | 538,064 | 502,373 | |
Operating Segments [Member] | Earthmoving/construction [Member] | Wheels and Tires (including assemblies) | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 258,709 | 329,403 | 292,553 | |
Operating Segments [Member] | Earthmoving/construction [Member] | Undercarriage systems and components | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 429,049 | 477,953 | 400,797 | |
Operating Segments [Member] | Consumer [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 153,505 | 169,785 | 137,465 | |
Gross profit | 32,133 | 31,337 | 18,030 | |
Income (loss) from operations | 22,380 | 22,843 | 9,553 | |
Segment, Expenditure, Addition to Long-Lived Assets | 5,244 | 3,660 | 3,039 | |
Depreciation & amortization | 3,404 | 3,226 | 3,621 | |
Total assets | 155,602 | 133,213 | 133,906 | |
Operating Segments [Member] | Consumer [Member] | Wheels and Tires (including assemblies) | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 130,297 | 147,307 | 116,405 | |
Operating Segments [Member] | Consumer [Member] | Undercarriage systems and components | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 23,208 | 22,478 | 21,060 | |
Operating Segments [Member] | Corporate & Unallocated | ||||
Segment Reporting Information [Line Items] | ||||
Income (loss) from operations | (29,417) | (27,325) | (29,853) | |
Depreciation & amortization | 2,440 | 1,539 | 860 | |
Total assets | [1] | 76,528 | 64,830 | 28,878 |
Cash and cash equivalents | $ 32,000 | $ 20,000 | $ 7,000 | |
[1]Unallocated assets included cash of approximately $32 million, $20 million, and $7 million as of December 31, 2023, 2022, and 2021, respectively |
SEGMENT INFORMATION GEOGRAPHIC
SEGMENT INFORMATION GEOGRAPHIC INFORMATION (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | $ 1,821,800 | $ 2,169,380 | $ 1,780,215 |
Long-Lived Assets | 321,694 | 296,605 | 301,109 |
UNITED STATES | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 814,676 | 1,074,715 | 835,985 |
Long-Lived Assets | 107,639 | 97,112 | 98,307 |
Europe [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 558,677 | 577,877 | 479,724 |
Long-Lived Assets | 142,749 | 138,617 | 146,547 |
Latin America [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 354,979 | 422,439 | 318,879 |
Long-Lived Assets | 61,169 | 49,714 | 42,599 |
Other Countries [Domain] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 93,468 | 94,349 | 145,627 |
Long-Lived Assets | $ 10,137 | $ 11,162 | $ 13,656 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Net income applicable to common shareholders | $ 78,760 | $ 176,302 | $ 49,586 |
Weighted Average Number of Shares Outstanding, Basic | 62,452 | 63,040 | 62,100 |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 509 | 651 | 585 |
Weighted Average Number of Shares Outstanding, Diluted | 62,961 | 63,691 | 62,685 |
Basic | $ 1.26 | $ 2.80 | $ 0.80 |
Diluted | $ 1.25 | $ 2.77 | $ 0.79 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - USD ($) $ in Millions | Feb. 29, 2024 | Dec. 31, 2023 |
Line of Credit [Member] | BMO Harris Bank N.A. [Member] | ||
Subsequent Event [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 125 | |
Subsequent Event [Member] | Line of Credit [Member] | BMO Harris Bank N.A. [Member] | ||
Subsequent Event [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 225 | |
Subsequent Event [Member] | The Carlstar Group | ||
Subsequent Event [Line Items] | ||
Business Combination, Consideration Transferred | 296.2 | |
Payments to Acquire Businesses, Gross | 127.5 | |
Business Combination, Consideration Transferred, Equity Interests Issued and Issuable | $ 168.7 |
SCHEDULE II - VALUATION RESER_2
SCHEDULE II - VALUATION RESERVES (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
SEC Schedule, 12-09, Allowance, Credit Loss | ||||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
SEC Schedule, 12-09, Valuation Allowances and Reserves, Amount | $ 5,340 | $ 6,170 | $ 4,550 | $ 3,782 |
SEC Schedule, 12-09, Valuation Allowances and Reserves, Additions, Charge to Cost and Expense | 50 | 1,646 | 826 | |
SEC Schedule, 12-09, Valuation Allowances and Reserves, Additions, Charge to Other Account | 0 | 0 | 0 | |
Valuation Allowances and Reserves, Deductions, Charge to Cost and Expense | (880) | (26) | (58) | |
SEC Schedule, 12-09, Valuation Allowances and Reserves, Deduction | 0 | 0 | 0 | |
Valuation Allowance Of Deferred Tax Domestic Member | ||||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
SEC Schedule, 12-09, Valuation Allowances and Reserves, Amount | 38,554 | 41,671 | 94,747 | 98,051 |
SEC Schedule, 12-09, Valuation Allowances and Reserves, Additions, Charge to Cost and Expense | 0 | 0 | 0 | |
SEC Schedule, 12-09, Valuation Allowances and Reserves, Additions, Charge to Other Account | 0 | 0 | 0 | |
Valuation Allowances and Reserves, Deductions, Charge to Cost and Expense | (3,117) | (53,076) | (1,034) | |
SEC Schedule, 12-09, Valuation Allowances and Reserves, Deduction | 0 | 0 | (2,270) | |
Valuation Allowance Of Deferred Tax Foreign Member | ||||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
SEC Schedule, 12-09, Valuation Allowances and Reserves, Amount | 80,981 | 79,386 | 78,425 | $ 101,125 |
SEC Schedule, 12-09, Valuation Allowances and Reserves, Additions, Charge to Cost and Expense | 94 | 19,503 | 3,712 | |
SEC Schedule, 12-09, Valuation Allowances and Reserves, Additions, Charge to Other Account | 2,369 | 0 | 0 | |
Valuation Allowances and Reserves, Deductions, Charge to Cost and Expense | (868) | (13,833) | (20,108) | |
SEC Schedule, 12-09, Valuation Allowances and Reserves, Deduction | $ 0 | $ (4,709) | $ (6,304) |