Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Oct. 29, 2015 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | THRM | |
Entity Registrant Name | GENTHERM INC | |
Entity Central Index Key | 903,129 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 36,210,905 |
Consolidated Condensed Balance
Consolidated Condensed Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Current Assets: | ||
Cash and cash equivalents | $ 129,172 | $ 85,700 |
Accounts receivable, less allowance of $3,055 and $2,847, respectively | 155,922 | 136,183 |
Inventory: | ||
Raw materials | 47,350 | 48,678 |
Work in process | 4,503 | 4,009 |
Finished goods | 26,070 | 24,956 |
Inventory, net | 77,923 | 77,643 |
Derivative financial instruments | 1,556 | 145 |
Deferred income tax assets | 5,714 | 6,247 |
Prepaid expenses and other assets | 27,117 | 29,107 |
Total current assets | 397,404 | 335,025 |
Property and equipment, net | 108,539 | 91,727 |
Goodwill | 28,523 | 30,398 |
Other intangible assets | 52,977 | 68,129 |
Deferred financing costs | 333 | 406 |
Deferred income tax assets | 22,902 | 18,843 |
Derivative financial instruments | 2,647 | 1,345 |
Other non-current assets | 12,363 | 12,019 |
Total assets | 625,688 | 557,892 |
Current Liabilities: | ||
Accounts payable | 70,386 | 71,434 |
Accrued liabilities | 66,067 | 68,387 |
Current maturities of long-term debt | 4,510 | 5,306 |
Deferred tax liabilities | 20 | |
Derivative financial instruments | 5,543 | 2,466 |
Total current liabilities | 146,526 | 147,593 |
Pension benefit obligation | 9,977 | 10,321 |
Other liabilities | 5,502 | 2,788 |
Long-term debt, less current maturities | 94,781 | 85,469 |
Derivative financial instruments | 5,941 | 6,698 |
Deferred income tax liabilities | 10,579 | 10,804 |
Total liabilities | 273,306 | 263,673 |
Common Stock: | ||
No par value; 55,000,000 shares authorized, 36,210,905 and 35,696,334 issued and outstanding at September 30, 2015 and December 31, 2014, respectively | 252,621 | 243,255 |
Paid-in capital | (6,690) | (8,224) |
Accumulated other comprehensive loss | (45,459) | (25,743) |
Accumulated earnings | 151,910 | 84,931 |
Total shareholders’ equity | 352,382 | 294,219 |
Total liabilities and shareholders’ equity | $ 625,688 | $ 557,892 |
Consolidated Condensed Balance3
Consolidated Condensed Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Statement Of Financial Position [Abstract] | ||
Accounts receivable, allowance | $ 3,055 | $ 2,847 |
Common Stock, par value | ||
Common Stock, shares authorized | 55,000,000 | 55,000,000 |
Common Stock, shares issued | 36,210,905 | 35,696,334 |
Common Stock, shares outstanding | 36,210,905 | 35,696,334 |
Consolidated Condensed Statemen
Consolidated Condensed Statements of Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Income Statement [Abstract] | ||||
Product revenues | $ 223,818 | $ 206,012 | $ 644,168 | $ 606,132 |
Cost of sales | 148,892 | 144,427 | 436,967 | 426,765 |
Gross margin | 74,926 | 61,585 | 207,201 | 179,367 |
Operating expenses: | ||||
Net research and development expenses | 14,934 | 15,278 | 44,459 | 42,873 |
Acquisition transaction expenses | 1,075 | |||
Selling, general and administrative | 22,543 | 22,181 | 71,546 | 61,741 |
Total operating expenses | 37,477 | 37,459 | 116,005 | 105,689 |
Operating income | 37,449 | 24,126 | 91,196 | 73,678 |
Interest expense | (759) | (857) | (1,867) | (2,758) |
Debt retirement expense | (730) | (730) | ||
Revaluation of derivatives | (134) | 294 | (1,151) | (293) |
Foreign currency gain (loss) | 420 | 938 | 748 | (905) |
Gain from equity investment | 785 | |||
Other income | 487 | 369 | 944 | 169 |
Earnings before income tax | 37,463 | 24,140 | 89,870 | 69,946 |
Income tax expense | 9,798 | 6,852 | 22,891 | 19,656 |
Net income | $ 27,665 | $ 17,288 | $ 66,979 | $ 50,290 |
Basic earnings per share | $ 0.77 | $ 0.49 | $ 1.86 | $ 1.42 |
Diluted earnings per share | $ 0.76 | $ 0.48 | $ 1.84 | $ 1.40 |
Weighted average number of shares – basic | 36,110,360 | 35,522,407 | 35,951,430 | 35,317,359 |
Weighted average number of shares – diluted | 36,481,711 | 36,271,280 | 36,390,042 | 35,942,811 |
Consolidated Condensed Stateme5
Consolidated Condensed Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net income | $ 27,665 | $ 17,288 | $ 66,979 | $ 50,290 |
Other comprehensive loss, gross of tax: | ||||
Foreign currency translation adjustments loss | (4,429) | (13,178) | (19,312) | (16,533) |
Unrealized loss on foreign currency derivative securities | (460) | (529) | (1,237) | (330) |
Unrealized loss on commodity derivative securities | (373) | (421) | ||
Other comprehensive loss, gross of tax | (5,262) | (13,707) | (20,970) | (16,863) |
Other comprehensive loss, related tax effect: | ||||
Foreign currency translation adjustments loss | 51 | 8 | 764 | 862 |
Unrealized loss on foreign currency derivative securities | 125 | 335 | ||
Unrealized loss on commodity derivative securities | 155 | 155 | ||
Other comprehensive loss, related tax effect | 331 | 8 | 1,254 | 862 |
Other comprehensive loss, net of tax | (4,931) | (13,699) | (19,716) | (16,001) |
Comprehensive income | $ 22,734 | $ 3,589 | $ 47,263 | $ 34,289 |
Consolidated Condensed Stateme6
Consolidated Condensed Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Operating Activities: | ||
Net income | $ 66,979 | $ 50,290 |
Adjustments to reconcile net income to cash provided by operating activities: | ||
Depreciation and amortization | 23,123 | 24,565 |
Deferred income tax benefit | (4,262) | (6,294) |
Stock compensation | 4,687 | 3,449 |
Defined benefit plan expense (income) | 284 | (33) |
Provision of doubtful accounts | 309 | 500 |
Gain on revaluation of financial derivatives | (951) | (1,264) |
Gain from equity investment | (785) | |
Loss on write-off of intangible assets | 358 | |
(Gain) loss on sale of property and equipment | (41) | 202 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (24,442) | (25,190) |
Inventory | (3,829) | (4,000) |
Prepaid expenses and other assets | (1,313) | (8,240) |
Accounts payable | 1,722 | 8,039 |
Accrued liabilities | 3,712 | 4,212 |
Net cash provided by operating activities | 66,336 | 45,451 |
Investing Activities: | ||
Acquisition and investment in subsidiary, net of cash acquired | (47) | (31,739) |
Proceeds from the sale of property and equipment | 226 | 96 |
Purchases of property and equipment | (35,728) | (26,990) |
Net cash used in investing activities | (35,549) | (58,633) |
Financing Activities: | ||
Borrowing of debt | 15,000 | 91,592 |
Repayments of debt | (4,156) | (76,904) |
Excess tax benefit from equity awards | 1,220 | 4,004 |
Cash paid for the cancellation of restricted stock | (1,475) | |
Proceeds from the exercise of Common Stock options | 6,468 | 6,282 |
Net cash provided by financing activities | 17,057 | 24,974 |
Foreign currency effect | (4,372) | (1,508) |
Net increase in cash and cash equivalents | 43,472 | 10,284 |
Cash and cash equivalents at beginning of period | 85,700 | 54,885 |
Cash and cash equivalents at end of period | 129,172 | 65,169 |
Supplemental disclosure of cash flow information: | ||
Cash paid for taxes | 23,870 | 13,181 |
Cash paid for interest | 1,420 | 1,990 |
Supplemental disclosure of non-cash transactions: | ||
Common Stock issued to Board of Directors and employees | $ 2,287 | $ 2,026 |
Consolidated Condensed Stateme7
Consolidated Condensed Statement of Changes In Shareholders' Equity - 9 months ended Sep. 30, 2015 - USD ($) $ in Thousands | Total | Common Stock | Paid-in Capital | Accumulated Earnings | Accumulated Other Comprehensive Loss |
Beginning Balance at Dec. 31, 2014 | $ 294,219 | $ 243,255 | $ (8,224) | $ 84,931 | $ (25,743) |
Beginning Balance (in shares) at Dec. 31, 2014 | 35,696,334 | 35,697,000 | |||
Exercise of Common Stock options for cash | $ 6,468 | $ 8,554 | (2,086) | ||
Exercise of Common Stock options for cash (in shares) | 436,000 | ||||
Tax benefit from exercises of Common Stock options | 1,220 | 1,220 | |||
Cancellation of restricted stock | (1,475) | $ (1,475) | |||
Cancelation of restricted stock (in shares) | (30,000) | ||||
Stock option compensation | 2,400 | 2,400 | |||
Common Stock issued to Board of Directors and employees | 2,287 | $ 2,287 | |||
Common Stock issued to Board of Directors and employees (in shares) | 108,000 | ||||
Currency translation, net | (18,548) | (18,548) | |||
Foreign currency hedge, net | (902) | (902) | |||
Commodity hedge, net | (266) | (266) | |||
Net income | 66,979 | 66,979 | |||
Ending Balance at Sep. 30, 2015 | $ 352,382 | $ 252,621 | $ (6,690) | $ 151,910 | $ (45,459) |
Ending Balance (in shares) at Sep. 30, 2015 | 36,210,905 | 36,211,000 |
The Company and Subsequent Even
The Company and Subsequent Events | 9 Months Ended |
Sep. 30, 2015 | |
Company And Subsequent Events [Abstract] | |
The Company and Subsequent Events | Note 1 – The Company and Subsequent Events Gentherm Incorporated is a global technology and industry leader in the design, development, and manufacturing of innovative thermal management technologies. Unless the context otherwise requires, the terms “Company”, “we”, “us” and “our” used herein refer to Gentherm Incorporated and its consolidated subsidiaries. Our products can be found on the vehicles of nearly all major automotive manufacturers, spanning all major automotive markets. We operate in locations aligned with our major customers’ product strategies in order to provide locally enhanced design, integration and production capabilities and to identify future thermal technology product opportunities in both automotive and other markets. We concentrate our research on the development of new technologies that will improve overall product effectiveness and customer satisfaction. We also focus on developing new design applications from our existing technologies to create products and market opportunities for thermal comfort solutions. In September 2015, we wrote off $317 related to patents because certain claims made under specific patents we own were determined to be unpatentable by the United States Patent and Trademark Office. We determined, however, that the loss of this patent protection did not cause a significant change in our projected future cash flows, and therefore determined that no other assets were impaired due to the ruling. The write-off was recorded to other intangible assets on Gentherm’s Consolidated Condensed Balance Sheet. Subsequent Events We have evaluated subsequent events through the date that our consolidated condensed financial statements are issued. No events have occurred that would require adjustment to or disclosure in the consolidated condensed financial statements. |
Basis of Presentation and New A
Basis of Presentation and New Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2015 | |
Basis Of Presentation And New Accounting Pronouncements [Abstract] | |
Basis of Presentation and New Accounting Pronouncements | Note 2 – Basis of Presentation and New Accounting Pronouncements The accompanying unaudited consolidated condensed financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and note disclosures normally included in the audited annual consolidated financial statements prepared in accordance with generally accepted accounting principles in the United States of America have been condensed or omitted pursuant to those rules and regulations. In the opinion of management, all adjustments, consisting of normal recurring items, considered necessary for a fair presentation of our results of operations, financial position and cash flows have been included. The balance sheet as of December 31, 2014 was derived from audited annual consolidated financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America. Operating results for the nine months ended September 30, 2015 is not necessarily indicative of the results that may be expected for the year ending December 31, 2015. These consolidated condensed financial statements should be read in conjunction with the financial statements and the notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2014. Debt Issuance Costs In April 2015, the Financial Accounting Standards Board (FASB) issued ASU 2015-03, “Interest – Imputation of Interest: Simplifying the Presentation of Debt Issuance Costs.” To simplify the presentation of debt issuance costs and improve consistency with International Financial Reporting Standards, ASU 2015-03 requires that debt issuance costs be presented in the balance sheet as a deduction from the carrying amount of a Company’s corresponding debt liability, similar to the current presentation of a debt discount or premium. Amortization of debt issuance costs will be reported as interest expense. In August, ASU 2015-15, “Interest – Imputation of Interest: Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements” was issued to incorporate a Securities and Exchange Commission (SEC) Staff Announcement regarding ASU 2015-03. The SEC staff noted that because ASU 2015-03 does not address the presentation or subsequent measurement of debt issuance costs related to line-of-credit arrangements, it would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. ASU 2015-03 and 2015-15 are effective for fiscal and interim periods beginning after December 15, 2015. Early adoption of the amendments in these updates is permitted. Entities are required to comply with the applicable disclosures for a change in an accounting principle, including a description of prior period information that has been retrospectively adjusted. We believe adoption of ASU 2015-03 and 2015-15 will have an immaterial impact on the presentation of debt on the Company’s consolidated condensed balance sheet. Note 2 – Basis of Presentation and New Accounting Pronouncements – Continued Revenue from Contracts with Customers In May, 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers.” ASU 2014-09 was developed to enable financial statement users to better understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. The update’s core principal is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Companies are to use a five-step contract review model to ensure revenue gets recognized, measured and disclosed in accordance with this principle. ASU 2014-09 was to be effective for fiscal years and interim periods beginning after December 15, 2016. On July 9, 2015, the FASB decided to defer by one year the effective date for both public and nonpublic entities. As a result, ASU 2014-09 is now effective for fiscal years and interim periods beginning after December 15, 2017. The amendments in this update will be applied retrospectively either to each prior reporting period presented or to disclose the cumulative effect recognized at the date of initial application. Gentherm has developed a plan to complete the five-step contract review process for all existing contracts with customers. We are still in the process of determining the impact the implementation of ASU 2014-09 will have on the Company’s financial statements. |
Earnings per Share
Earnings per Share | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Earnings per Share | Note 3 – Basic earnings per share are computed by dividing net income by the weighted average number of shares of stock outstanding during the period. The Company’s diluted earnings per share give effect to all potential Common Stock outstanding during a period that do not have an anti-dilutive impact to the calculation. In computing the diluted earnings per share, the treasury stock method is used in determining the number of shares assumed to be issued from the exercise of Common Stock equivalents. The following summarizes the Common Stock included in the basic and diluted shares, as disclosed on the face of the consolidated condensed statements of income: Three Months Nine Months 2015 2014 2015 2014 Weighted average number of shares for calculation of basic EPS 36,110,360 35,522,407 35,951,430 35,317,359 Stock options under the 2006, 2011 and 2013 equity plans 371,351 748,873 438,612 625,452 Weighted average number of shares for calculation of diluted EPS 36,481,711 36,271,280 36,390,042 35,942,811 The accompanying table represents Common Stock issuable upon the exercise of certain stock options that have been excluded from the diluted earnings calculation because the effect of their inclusion would be anti-dilutive. Three Months Nine Months 2015 2014 2015 2014 Stock options outstanding under the 2006, 2011 and 2013 Equity Incentive Plans 5,534 — 5,534 — 5,534 — 5,534 — |
Segment Reporting
Segment Reporting | 9 Months Ended |
Sep. 30, 2015 | |
Segment Reporting [Abstract] | |
Segment Reporting | Note 4 – Segment Reporting Segment information is used by management for making operating decisions for the Company. Management evaluates the performance of the Company’s segments based primarily on operating income or loss. The Company’s reportable segments are as follows: ● Automotive ● Industrial ● Reconciling Items – The tables below present segment information about the reported product revenues, depreciation and amortization and operating income (loss) of the Company for three and nine month periods ended September 30, 2015 and 2014. With the exception of goodwill, asset information by segment is not reported since the Company does not manage assets at a segment level. As of September 30, 2015, goodwill assigned to our Automotive and Industrial segments were $22,218 and $6,305, respectively. Three Months Ended September 30, Automotive Industrial Reconciling Consolidated 2015: Product revenues $ 202,734 $ 21,084 $ — $ 223,818 Depreciation and amortization 6,956 450 394 7,800 Operating income (loss) 42,123 3,871 (8,545 ) 37,449 2014: Product revenues $ 197,480 $ 8,532 $ — $ 206,012 Depreciation and amortization 6,974 879 781 8,634 Operating income (loss) 32,087 (716 ) (7,245 ) 24,126 Nine Months Ended September 30, Automotive Industrial Reconciling Consolidated 2015: Product revenues $ 603,131 $ 41,037 $ — $ 644,168 Depreciation and amortization 20,157 1,343 1,623 23,123 Operating income (loss) 124,875 959 (34,638 ) 91,196 2014: Product revenues $ 589,426 $ 16,706 $ — $ 606,132 Depreciation and amortization 20,374 1,650 2,541 24,565 Operating income (loss) 105,786 (5,317 ) (26,791 ) 73,678 Note 4 – Segment Reporting – Continued Total product revenues information by geographic area is as follows: Three Months Ended September 30, 2015 2014 United States $ 99,833 45 % $ 96,680 47 % China 24,092 11 % 17,557 9 % Germany 18,449 8 % 22,529 11 % South Korea 18,271 8 % 21,339 10 % Mexico 12,441 6 % 4,991 2 % Japan 10,965 5 % 11,970 6 % Czech Republic 7,522 3 % 6,457 3 % Canada 7,353 3 % 4,811 2 % United Kingdom 6,199 3 % 5,363 3 % Other 18,693 8 % 14,315 7 % Total Non U.S. 123,985 55 % 109,332 53 % $ 223,818 100 % $ 206,012 100 % Nine Months Ended September 30, 2015 2014 United States $ 293,904 45 % $ 270,597 45 % South Korea 62,347 10 % 67,293 11 % China 58,452 9 % 50,850 8 % Germany 56,088 9 % 70,491 12 % Japan 33,482 5 % 34,291 6 % Mexico 23,200 4 % 14,752 2 % Czech Republic 20,757 3 % 19,398 3 % United Kingdom 19,825 3 % 18,162 3 % Canada 18,928 3 % 12,542 2 % Other 57,185 9 % 47,756 8 % Total Non U.S. 350,264 55 % 335,535 55 % $ 644,168 100 % $ 606,132 100 % |
Debt
Debt | 9 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
Debt | Note 5 – Debt Credit Agreement The Company, together with certain direct and indirect subsidiaries have an outstanding Credit Agreement (the “Credit Agreement”) with a syndicate of banks led by Bank of America, N.A. The Credit Agreement provides for a $50,000 secured term loan facility for Gentherm (the “US Term Loan”), and a €20,000 secured term loan facility for Gentherm GmbH (the “Europe Term Loan”), and a $100,000 secured revolving credit facility (the “US Revolving Note”) with specific borrowing limits for foreign subsidiaries party to such agreement. The Credit Agreement allows the Company to increase the revolving credit facility or incur additional secured term loans in an aggregate amount of $50,000, subject to specific conditions. Note 5 – Debt – Continued All obligations under the Credit Agreement (including all the obligations of any US or non-US loan party) are unconditionally guaranteed by Gentherm and specified US subsidiaries. Additionally, such parties entered into a pledge and security agreement, granting a security interest in substantially all of their personal property to secure their respective obligations under the Credit Agreement, including the stock and membership interests of specified subsidiaries (limited to 66% of the stock in the case of certain non-US subsidiaries). Further, specified foreign subsidiaries guarantee all obligations of the non-US loan parties under the Credit Agreement. The Company must maintain certain financial ratios consisting of a minimum Consolidated Fixed Charge Coverage Ratio and a maximum Consolidated Leverage Ratio as defined by the Credit Agreement. The Credit Agreement places specific restrictions on the amount of dividend payments to shareholders. Under the Credit Agreement, US Dollar denominated loans bear interest at either a base rate (“Base Rate Loans”) or Eurocurrency rate (“Eurocurrency Rate Loans”), plus a margin (“Applicable Rate”). Base Rate Loans are equal to the highest of the Federal Funds Rate (0.07% at September 30, 2015) plus 0.50%, Bank of America’s prime rate (3.25% as of September 30, 2015), or a one month Eurocurrency rate plus 1.00%. Eurocurrency Rate Loans denominated in US Dollars or European Euros (“Euros”) are equal to the London Interbank Offered Rate and the Canadian Dealer Offered Rate for Canadian Dollar denominations. All loans denominated in a currency other than the US Dollar, including the Europe Term Loan, must be Eurocurrency Rate Loans. Interest is payable at least quarterly. The Applicable Rate varies based on the Consolidated Leverage Ratio of the Company, as defined by the Credit Agreement. As long as the Company is not in default of the terms and conditions of the Credit Agreement, the lowest and highest possible Applicable Rate is 1.50% and 2.00%, respectively, for Eurocurrency Rate Loans and 0.50% and 1.00%, respectively, for Base Rate Loans. Our leverage ratio as of September 30, 2015 qualified us for the lowest Applicable Rate available. DEG China Loan The Company has two fixed interest rate loans with the German Investment Corporation, a subsidiary of KfW banking group (“DEG”), a German government-owned development bank. The first, a loan we used to fund capital investments in China (the “DEG China Loan”), is subject to semi-annual principal payments beginning March, 2015 and ending September, 2019. Under the terms of the DEG China Loan, the Company must maintain a minimum Debt-to-Equity Ratio, Current Ratio and Debt Service Coverage Ratio based on the financial statements of Gentherm’s wholly owned subsidiary, Gentherm Automotive Systems (China) Limited, as defined by the DEG China Loan agreement. DEG Vietnam Loan On June 24, 2015, we entered into the second loan agreement with DEG for a long-term senior loan in an amount of $15,000 to finance the construction and set up of the Vietnam production facility (“DEG Vietnam Loan”). On August 27, 2015, the entire $15,000 was drawn and interest was fixed at 5.21% for the duration of the loan. The DEG Vietnam Loan is subject to semi-annual principal payments beginning November, 2017 and ending May, 2023. Under the terms of the DEG Vietnam Loan, the Company must maintain a minimum Current Ratio, Equity Ratio and Enhanced Equity Ratio based on the financial statements of Gentherm’s wholly owned subsidiary, Gentherm Vietnam Co. LTD, each as defined by the DEG Vietnam Loan agreement. Note 5 – Debt – Continued The following table summarizes the Company’s debt at September 30, 2015 and at December 31, 2014. September 30, 2015 December 31, Interest Principal Principal Credit Agreement: US Term Loan 1.83 % $ 47,500 $ 49,375 Europe Term Loan 1.50 % 21,217 23,963 US Revolving Note 1.69 % 12,000 12,000 DEG China Loan 4.25 % 3,574 4,805 DEG Vietnam Loan 5.21 % 15,000 — Capital leases — 632 Total debt 99,291 90,775 Current portion (4,510 ) (5,306 ) Long-term debt, less current maturities $ 94,781 $ 85,469 As of September 30, 2015, we were in compliance with all terms as outlined in the Credit Agreement, DEG China Loan and DEG Vietnam Loan. |
Derivative Financial Instrument
Derivative Financial Instruments | 9 Months Ended |
Sep. 30, 2015 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Note 6 – Derivative Financial Instruments We are exposed to market risk from changes in foreign currency exchange rates, short-term interest rates and price fluctuations of certain material commodities such as copper. Market risks for changes in interest rates relate primarily to our debt obligations under our Credit Agreement and obligations from currency related interest rate swaps. Foreign currency exchange risks are attributable to sales to foreign customers and purchases from foreign suppliers not denominated in the location’s functional currency, foreign plant operations, intercompany indebtedness, and intercompany investments and include exposures to the Euro, Mexican Peso, Canadian Dollar, Hungarian Forint, Ukrainian Hryvnia, Japanese Yen, Chinese Renminbi, Korean Won, Vietnamese Dong, and Macedonian Denar. The Company regularly enters into derivative contracts with the objective of managing its financial and operational exposure arising from these risks by offsetting gains and losses on the underlying exposures with gains and losses on the financial instruments used to hedge them. The maximum length of time over which we hedge our exposure to foreign currency exchange risks is one year. The maximum length of time over which we hedge our exposure to price fluctuations in material commodities is two years. We do not enter into derivative financial instruments for speculative or trading purposes. Our hedging relationships are formally documented at the inception of the hedge, and hedges must be highly effective in offsetting changes to future cash flows on hedged transactions both at the inception of a hedge and on an ongoing basis to be designated for hedge accounting treatment. We record the ineffective portion of foreign currency hedging instruments, if any, to foreign currency (loss) gain in the consolidated condensed statements of income. Though we continuously monitor the hedging program, derivative positions and hedging strategies, foreign currency forward exchange agreements have not always been designated as hedging instruments for accounting purposes. The Company uses an income approach to value derivative instruments, analyzing quoted market prices to calculate the forward values and then discounts such forward values to the present value In March, 2008, Gentherm GmbH, entered into a 10 year currency related interest rate swap (“CRS”) having a notional value of €10,000, or $11,167 as of September 30, 2015, in order to offset the interest rate risk associated with a debt financing which was repaid prior to our acquisition of Gentherm GmbH in 2011. The counterparty to the CRS was HypoVereinsbank AG (now UniCredit Bank AG, “UniCredit”), its main bank at the time. Under this agreement, Gentherm GmbH receives interest equal to the six month Euro Interbank Offered Rate (“EURIBOR”), 0.03% at September 30, 2015, plus 1.40% and pays interest equal to the six month EURIBOR when the exchange rate between the European Euro (“EUR”) and the Swiss Franc (“CHF”) equals or exceeds 1.46 EUR to the CHF. When the exchange rate is less than 1.46 (it was 1.09 at September 30, 2015), Gentherm GmbH pays interest equal to the six month EURIBOR plus a premium. The premium is calculated as [(1.46 – current EUR/CHF rate)/current EUR/CHF rate] x 100. Note 6 – Derivative Financial Instruments – Continued In 2011, Gentherm GmbH brought forth a lawsuit against UniCredit, because of the recommendation to enter into the CRS. On March 25, 2013, the District Court in Munich, Germany ruled in favor of Gentherm GmbH, asserting that UniCredit had a conflict of interest as financial advisor and counterparty to the CRS and violated its duty to disclose the initial negative market value of the CRS. The Munich District Court ruled that UniCredit must (1) pay €144 to Gentherm GmbH and (2) bear the costs of all future obligations under the CRS, which were €8,751 or $9,773 as of September 30, 2015, plus additional accrued liabilities for past due payments under the CRS of approximately €10,803, or $12,064 as of September 30, 2015. UniCredit has appealed the decision. The appeal is pending. As a result, the Company cannot be certain that any portion of the award by the Munich District Court will be upheld. Gentherm GmbH has entered into an offsetting derivative contract designed to limit the market risk of payments due under the CRS through the end of the CRS agreement, in 2018. Information related to the recurring fair value measurement of derivative instruments in our consolidated condensed balance sheet as of September 30, 2015 is as follows: Asset Derivatives Liability Derivatives Net Asset/ Hedge Fair Value Balance Sheet Fair Balance Sheet Fair CRS Not a hedge Level 2 Current liabilities $ (3,832 ) Non-current (5,941 ) Total CRS $ (9,773 ) $ (9,773 ) Foreign currency derivatives Cash flow hedge Level 2 Current assets $ 46 Current liabilities $ (1,290 ) $ (1,244 ) Foreign currency derivatives Not a hedge Level 2 Current assets $ 1,510 $ 1,510 Non-current 2,647 2,647 Total foreign currency derivatives $ 4,203 $ (1,290 ) $ 2,913 Commodity derivatives Cash flow hedge Level 2 Current liabilities $ (421 ) $ (421 ) Information relating to the effect of derivative instruments on our consolidated condensed statements of income is as follows: Location Three Months Nine Months Three Months Nine Months Foreign currency derivatives Revaluation of derivatives $ (2,526 ) $ 3,752 $ 557 $ 398 Product Revenues — — (129 ) (129 ) Cost of sales (694 ) (1,014 ) 64 94 Selling, general and administrative (235 ) (189 ) (73 ) (141 ) Other comprehensive income (460 ) (1,237 ) (571 ) (411 ) Foreign currency (loss) gain 31 320 (606 ) (1,054 ) Total foreign currency derivatives $ (3,884 ) $ 1,632 $ (758 ) $ (1,243 ) CRS Revaluation of derivatives $ 2,392 $ (4,903 ) $ (263 ) $ (690 ) Interest rate derivatives Revaluation of derivatives $ — $ — $ — $ (1 ) Other comprehensive income — — 42 81 Commodity derivatives Other comprehensive income $ (373 ) $ (421 ) $ — $ — We did not incur any hedge ineffectiveness during the nine months ended September 30, 2015 and 2014. |
Fair Value Measurement
Fair Value Measurement | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | Note 7 – The Company bases fair value on a price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. We have adopted a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value into three broad levels, which are described below: Level 1: Quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs. Level 2: Inputs, other than quoted market prices included in Level 1, that are observable either directly or indirectly for the asset or liability. Level 3: Unobservable inputs that are used when little or no market data is available. The fair value hierarchy gives the lowest priority to Level 3 inputs. In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible and also considers counterparty credit risk in its assessment of fair value. Except for derivative instruments (see Note 6), the Company has no financial assets and liabilities that are carried at fair value at September 30, 2015 and December 31, 2014. The carrying amounts of financial instruments comprising cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities approximate their fair values due to the relatively short maturity of such instruments. The Company uses an income valuation technique to measure the fair values of its debt instruments by converting amounts of future cash flows to a single present value amount using rates based on current market expectations (Level 2 inputs). As of September 30, 2015 and December 31, 2014, the carrying values of the Company’s Credit Agreement indebtedness were not materially different than their estimated fair values because the interest rates on variable rate debt approximated rates currently available to the Company (see Note 5). Discount rates used to measure the fair value of Gentherm’s DEG Vietnam Loan and DEG China Loan are based on quoted swap rates. As of September 30, 2015, the carrying values of the DEG Vietnam Loan and DEG China Loan were $15,000 and $3,574, respectively, as compared to an estimated fair value of $15,269 and $3,666, respectively. As of December 31, 2014, the carrying value of the DEG China Loan was $4,805, as compared to an estimated aggregate fair value of $4,937. Certain Company assets are required to be recorded at fair value on a non-recurring basis when events and circumstances indicate that the carrying value may not be recoverable. As of September 30, 2015 and December 31, 2014, the Company did not realize any changes to the fair value of these assets due to the non-occurrence of events or circumstances that could negatively impact their recoverability. |
Basis of Presentation and New15
Basis of Presentation and New Accounting Pronouncements (Policies) | 9 Months Ended |
Sep. 30, 2015 | |
Basis Of Presentation And New Accounting Pronouncements [Abstract] | |
Debt Issuance Costs | Debt Issuance Costs In April 2015, the Financial Accounting Standards Board (FASB) issued ASU 2015-03, “Interest – Imputation of Interest: Simplifying the Presentation of Debt Issuance Costs.” To simplify the presentation of debt issuance costs and improve consistency with International Financial Reporting Standards, ASU 2015-03 requires that debt issuance costs be presented in the balance sheet as a deduction from the carrying amount of a Company’s corresponding debt liability, similar to the current presentation of a debt discount or premium. Amortization of debt issuance costs will be reported as interest expense. In August, ASU 2015-15, “Interest – Imputation of Interest: Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements” was issued to incorporate a Securities and Exchange Commission (SEC) Staff Announcement regarding ASU 2015-03. The SEC staff noted that because ASU 2015-03 does not address the presentation or subsequent measurement of debt issuance costs related to line-of-credit arrangements, it would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. ASU 2015-03 and 2015-15 are effective for fiscal and interim periods beginning after December 15, 2015. Early adoption of the amendments in these updates is permitted. Entities are required to comply with the applicable disclosures for a change in an accounting principle, including a description of prior period information that has been retrospectively adjusted. We believe adoption of ASU 2015-03 and 2015-15 will have an immaterial impact on the presentation of debt on the Company’s consolidated condensed balance sheet. |
Revenue from Contracts with Customers | Note 2 – Basis of Presentation and New Accounting Pronouncements – Continued Revenue from Contracts with Customers In May, 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers.” ASU 2014-09 was developed to enable financial statement users to better understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. The update’s core principal is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Companies are to use a five-step contract review model to ensure revenue gets recognized, measured and disclosed in accordance with this principle. ASU 2014-09 was to be effective for fiscal years and interim periods beginning after December 15, 2016. On July 9, 2015, the FASB decided to defer by one year the effective date for both public and nonpublic entities. As a result, ASU 2014-09 is now effective for fiscal years and interim periods beginning after December 15, 2017. The amendments in this update will be applied retrospectively either to each prior reporting period presented or to disclose the cumulative effect recognized at the date of initial application. Gentherm has developed a plan to complete the five-step contract review process for all existing contracts with customers. We are still in the process of determining the impact the implementation of ASU 2014-09 will have on the Company’s financial statements. |
Earnings per Share (Tables)
Earnings per Share (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Shares of Consolidated Condensed Statements of Income | The following summarizes the Common Stock included in the basic and diluted shares, as disclosed on the face of the consolidated condensed statements of income: Three Months Nine Months 2015 2014 2015 2014 Weighted average number of shares for calculation of basic EPS 36,110,360 35,522,407 35,951,430 35,317,359 Stock options under the 2006, 2011 and 2013 equity plans 371,351 748,873 438,612 625,452 Weighted average number of shares for calculation of diluted EPS 36,481,711 36,271,280 36,390,042 35,942,811 |
Common Stock Issuable upon Exercise of Certain Stock Options | The accompanying table represents Common Stock issuable upon the exercise of certain stock options that have been excluded from the diluted earnings calculation because the effect of their inclusion would be anti-dilutive. Three Months Nine Months 2015 2014 2015 2014 Stock options outstanding under the 2006, 2011 and 2013 Equity Incentive Plans 5,534 — 5,534 — 5,534 — 5,534 — |
Segment Reporting (Tables)
Segment Reporting (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Segment Reporting [Abstract] | |
Segment Information about Reported Product Revenues, Depreciation and Amortization and Operating Income (Loss) | The tables below present segment information about the reported product revenues, depreciation and amortization and operating income (loss) of the Company for three and nine month periods ended September 30, 2015 and 2014. With the exception of goodwill, asset information by segment is not reported since the Company does not manage assets at a segment level. As of September 30, 2015, goodwill assigned to our Automotive and Industrial segments were $22,218 and $6,305, respectively. Three Months Ended September 30, Automotive Industrial Reconciling Consolidated 2015: Product revenues $ 202,734 $ 21,084 $ — $ 223,818 Depreciation and amortization 6,956 450 394 7,800 Operating income (loss) 42,123 3,871 (8,545 ) 37,449 2014: Product revenues $ 197,480 $ 8,532 $ — $ 206,012 Depreciation and amortization 6,974 879 781 8,634 Operating income (loss) 32,087 (716 ) (7,245 ) 24,126 Nine Months Ended September 30, Automotive Industrial Reconciling Consolidated 2015: Product revenues $ 603,131 $ 41,037 $ — $ 644,168 Depreciation and amortization 20,157 1,343 1,623 23,123 Operating income (loss) 124,875 959 (34,638 ) 91,196 2014: Product revenues $ 589,426 $ 16,706 $ — $ 606,132 Depreciation and amortization 20,374 1,650 2,541 24,565 Operating income (loss) 105,786 (5,317 ) (26,791 ) 73,678 |
Product Revenues Information by Geographic Area | Total product revenues information by geographic area is as follows: Three Months Ended September 30, 2015 2014 United States $ 99,833 45 % $ 96,680 47 % China 24,092 11 % 17,557 9 % Germany 18,449 8 % 22,529 11 % South Korea 18,271 8 % 21,339 10 % Mexico 12,441 6 % 4,991 2 % Japan 10,965 5 % 11,970 6 % Czech Republic 7,522 3 % 6,457 3 % Canada 7,353 3 % 4,811 2 % United Kingdom 6,199 3 % 5,363 3 % Other 18,693 8 % 14,315 7 % Total Non U.S. 123,985 55 % 109,332 53 % $ 223,818 100 % $ 206,012 100 % Nine Months Ended September 30, 2015 2014 United States $ 293,904 45 % $ 270,597 45 % South Korea 62,347 10 % 67,293 11 % China 58,452 9 % 50,850 8 % Germany 56,088 9 % 70,491 12 % Japan 33,482 5 % 34,291 6 % Mexico 23,200 4 % 14,752 2 % Czech Republic 20,757 3 % 19,398 3 % United Kingdom 19,825 3 % 18,162 3 % Canada 18,928 3 % 12,542 2 % Other 57,185 9 % 47,756 8 % Total Non U.S. 350,264 55 % 335,535 55 % $ 644,168 100 % $ 606,132 100 % |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
Summary of Company's Debt | Note 5 – Debt – Continued The following table summarizes the Company’s debt at September 30, 2015 and at December 31, 2014. September 30, 2015 December 31, Interest Principal Principal Credit Agreement: US Term Loan 1.83 % $ 47,500 $ 49,375 Europe Term Loan 1.50 % 21,217 23,963 US Revolving Note 1.69 % 12,000 12,000 DEG China Loan 4.25 % 3,574 4,805 DEG Vietnam Loan 5.21 % 15,000 — Capital leases — 632 Total debt 99,291 90,775 Current portion (4,510 ) (5,306 ) Long-term debt, less current maturities $ 94,781 $ 85,469 |
Derivative Financial Instrume19
Derivative Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Information Related to Recurring Fair Value Measurement of Derivative Instruments in Our Consolidated Condensed Balance Sheet | Information related to the recurring fair value measurement of derivative instruments in our consolidated condensed balance sheet as of September 30, 2015 is as follows: Asset Derivatives Liability Derivatives Net Asset/ Hedge Fair Value Balance Sheet Fair Balance Sheet Fair CRS Not a hedge Level 2 Current liabilities $ (3,832 ) Non-current (5,941 ) Total CRS $ (9,773 ) $ (9,773 ) Foreign currency derivatives Cash flow hedge Level 2 Current assets $ 46 Current liabilities $ (1,290 ) $ (1,244 ) Foreign currency derivatives Not a hedge Level 2 Current assets $ 1,510 $ 1,510 Non-current 2,647 2,647 Total foreign currency derivatives $ 4,203 $ (1,290 ) $ 2,913 Commodity derivatives Cash flow hedge Level 2 Current liabilities $ (421 ) $ (421 ) |
Information Related to Effect of Derivative Instruments on Our Consolidated Condensed Statements of Income | Information relating to the effect of derivative instruments on our consolidated condensed statements of income is as follows: Location Three Months Nine Months Three Months Nine Months Foreign currency derivatives Revaluation of derivatives $ (2,526 ) $ 3,752 $ 557 $ 398 Product Revenues — — (129 ) (129 ) Cost of sales (694 ) (1,014 ) 64 94 Selling, general and administrative (235 ) (189 ) (73 ) (141 ) Other comprehensive income (460 ) (1,237 ) (571 ) (411 ) Foreign currency (loss) gain 31 320 (606 ) (1,054 ) Total foreign currency derivatives $ (3,884 ) $ 1,632 $ (758 ) $ (1,243 ) CRS Revaluation of derivatives $ 2,392 $ (4,903 ) $ (263 ) $ (690 ) Interest rate derivatives Revaluation of derivatives $ — $ — $ — $ (1 ) Other comprehensive income — — 42 81 Commodity derivatives Other comprehensive income $ (373 ) $ (421 ) $ — $ — |
The Company and Subsequent Ev20
The Company and Subsequent Events - Additional Information (Detail) - USD ($) $ in Thousands | 1 Months Ended | 9 Months Ended |
Sep. 30, 2015 | Sep. 30, 2015 | |
Nature Of Company [Line Items] | ||
Loss on write-off of intangible assets | $ 358 | |
Patents | ||
Nature Of Company [Line Items] | ||
Loss on write-off of intangible assets | $ 317 |
Earnings per Share (Detail)
Earnings per Share (Detail) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Weighted average number of shares for calculation of basic EPS | 36,110,360 | 35,522,407 | 35,951,430 | 35,317,359 |
Stock options under the 2006, 2011 and 2013 equity plans | 371,351 | 748,873 | 438,612 | 625,452 |
Weighted average number of shares for calculation of diluted EPS | 36,481,711 | 36,271,280 | 36,390,042 | 35,942,811 |
Common stock that have been excluded from the diluted shares calculation | 5,534 | 5,534 | ||
Stock options outstanding under the 2006, 2011 and 2013 Equity Incentive Plans | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Common stock that have been excluded from the diluted shares calculation | 5,534 | 5,534 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Segment Reporting Information [Line Items] | ||
Goodwill | $ 28,523 | $ 30,398 |
Automotive Segments | ||
Segment Reporting Information [Line Items] | ||
Goodwill | 22,218 | |
Industrial Segments | ||
Segment Reporting Information [Line Items] | ||
Goodwill | $ 6,305 |
Segment Information about Repor
Segment Information about Reported Product Revenues, Depreciation and Amortization and Operating Income (Loss) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Segment Reporting Information [Line Items] | ||||
Product revenues | $ 223,818 | $ 206,012 | $ 644,168 | $ 606,132 |
Depreciation and amortization | 7,800 | 8,634 | 23,123 | 24,565 |
Operating income (loss) | 37,449 | 24,126 | 91,196 | 73,678 |
Operating Segments | Automotive Segments | ||||
Segment Reporting Information [Line Items] | ||||
Product revenues | 202,734 | 197,480 | 603,131 | 589,426 |
Depreciation and amortization | 6,956 | 6,974 | 20,157 | 20,374 |
Operating income (loss) | 42,123 | 32,087 | 124,875 | 105,786 |
Operating Segments | Industrial Segments | ||||
Segment Reporting Information [Line Items] | ||||
Product revenues | 21,084 | 8,532 | 41,037 | 16,706 |
Depreciation and amortization | 450 | 879 | 1,343 | 1,650 |
Operating income (loss) | 3,871 | (716) | 959 | (5,317) |
Reconciling Items | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation and amortization | 394 | 781 | 1,623 | 2,541 |
Operating income (loss) | $ (8,545) | $ (7,245) | $ (34,638) | $ (26,791) |
Segment Reporting (Detail)
Segment Reporting (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Segment Reporting Information [Line Items] | ||||
Product revenues | $ 223,818 | $ 206,012 | $ 644,168 | $ 606,132 |
Sales Revenue, Net | Geographic Concentration Risk | ||||
Segment Reporting Information [Line Items] | ||||
Total product revenues in percentage | 100.00% | 100.00% | 100.00% | 100.00% |
United States | ||||
Segment Reporting Information [Line Items] | ||||
Product revenues | $ 99,833 | $ 96,680 | $ 293,904 | $ 270,597 |
United States | Sales Revenue, Net | Geographic Concentration Risk | ||||
Segment Reporting Information [Line Items] | ||||
Total product revenues in percentage | 45.00% | 47.00% | 45.00% | 45.00% |
China | ||||
Segment Reporting Information [Line Items] | ||||
Product revenues | $ 24,092 | $ 17,557 | $ 58,452 | $ 50,850 |
China | Sales Revenue, Net | Geographic Concentration Risk | ||||
Segment Reporting Information [Line Items] | ||||
Total product revenues in percentage | 11.00% | 9.00% | 9.00% | 8.00% |
Germany | ||||
Segment Reporting Information [Line Items] | ||||
Product revenues | $ 18,449 | $ 22,529 | $ 56,088 | $ 70,491 |
Germany | Sales Revenue, Net | Geographic Concentration Risk | ||||
Segment Reporting Information [Line Items] | ||||
Total product revenues in percentage | 8.00% | 11.00% | 9.00% | 12.00% |
South Korea | ||||
Segment Reporting Information [Line Items] | ||||
Product revenues | $ 18,271 | $ 21,339 | $ 62,347 | $ 67,293 |
South Korea | Sales Revenue, Net | Geographic Concentration Risk | ||||
Segment Reporting Information [Line Items] | ||||
Total product revenues in percentage | 8.00% | 10.00% | 10.00% | 11.00% |
Mexico | ||||
Segment Reporting Information [Line Items] | ||||
Product revenues | $ 12,441 | $ 4,991 | $ 23,200 | $ 14,752 |
Mexico | Sales Revenue, Net | Geographic Concentration Risk | ||||
Segment Reporting Information [Line Items] | ||||
Total product revenues in percentage | 6.00% | 2.00% | 4.00% | 2.00% |
Japan | ||||
Segment Reporting Information [Line Items] | ||||
Product revenues | $ 10,965 | $ 11,970 | $ 33,482 | $ 34,291 |
Japan | Sales Revenue, Net | Geographic Concentration Risk | ||||
Segment Reporting Information [Line Items] | ||||
Total product revenues in percentage | 5.00% | 6.00% | 5.00% | 6.00% |
Czech Republic | ||||
Segment Reporting Information [Line Items] | ||||
Product revenues | $ 7,522 | $ 6,457 | $ 20,757 | $ 19,398 |
Czech Republic | Sales Revenue, Net | Geographic Concentration Risk | ||||
Segment Reporting Information [Line Items] | ||||
Total product revenues in percentage | 3.00% | 3.00% | 3.00% | 3.00% |
Canada | ||||
Segment Reporting Information [Line Items] | ||||
Product revenues | $ 7,353 | $ 4,811 | $ 18,928 | $ 12,542 |
Canada | Sales Revenue, Net | Geographic Concentration Risk | ||||
Segment Reporting Information [Line Items] | ||||
Total product revenues in percentage | 3.00% | 2.00% | 3.00% | 2.00% |
United Kingdom | ||||
Segment Reporting Information [Line Items] | ||||
Product revenues | $ 6,199 | $ 5,363 | $ 19,825 | $ 18,162 |
United Kingdom | Sales Revenue, Net | Geographic Concentration Risk | ||||
Segment Reporting Information [Line Items] | ||||
Total product revenues in percentage | 3.00% | 3.00% | 3.00% | 3.00% |
Other | ||||
Segment Reporting Information [Line Items] | ||||
Product revenues | $ 18,693 | $ 14,315 | $ 57,185 | $ 47,756 |
Other | Sales Revenue, Net | Geographic Concentration Risk | ||||
Segment Reporting Information [Line Items] | ||||
Total product revenues in percentage | 8.00% | 7.00% | 9.00% | 8.00% |
Non U.S. | ||||
Segment Reporting Information [Line Items] | ||||
Product revenues | $ 123,985 | $ 109,332 | $ 350,264 | $ 335,535 |
Non U.S. | Sales Revenue, Net | Geographic Concentration Risk | ||||
Segment Reporting Information [Line Items] | ||||
Total product revenues in percentage | 55.00% | 53.00% | 55.00% | 55.00% |
Debt - Additional Information (
Debt - Additional Information (Detail) | Jun. 24, 2015 | Sep. 30, 2015USD ($) | Sep. 30, 2015EUR (€) | Aug. 27, 2015USD ($) | Dec. 31, 2014USD ($) |
Debt Instrument [Line Items] | |||||
Maximum percentage of stock of non US subsidiaries pledge to secure obligation | 66.00% | 66.00% | |||
Semi-annual principal payments earliest date | 2015-03 | ||||
Semi-annual principal payments latest date | 2019-09 | ||||
Total debt | $ 99,291,000 | $ 90,775,000 | |||
Federal Funds Rate | Minimum | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 0.07% | ||||
Federal Funds Rate | Maximum | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 0.50% | ||||
Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Secured long-term debt | $ 100,000,000 | ||||
Line of credit facility | 50,000,000 | ||||
US Term Note | |||||
Debt Instrument [Line Items] | |||||
Loan borrowing capacity | $ 50,000,000 | ||||
Fixed interest rate | 1.83% | 1.83% | |||
Total debt | $ 47,500,000 | 49,375,000 | |||
Europe Term Loan | |||||
Debt Instrument [Line Items] | |||||
Loan borrowing capacity | € | € 20,000,000 | ||||
Fixed interest rate | 1.50% | 1.50% | |||
Total debt | $ 21,217,000 | $ 23,963,000 | |||
United State Bank Of America Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 3.25% | ||||
Euro Currency Rate Loans | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 1.00% | ||||
Euro Currency Rate Loans | Minimum | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 1.50% | ||||
Euro Currency Rate Loans | Maximum | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 2.00% | ||||
Base Rate Loans | Minimum | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 0.50% | ||||
Base Rate Loans | Maximum | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 1.00% | ||||
DEG Vietnam Loan | |||||
Debt Instrument [Line Items] | |||||
Loan borrowing capacity | $ 15,000,000 | ||||
Semi-annual principal payments earliest date | 2017-11 | ||||
Semi-annual principal payments latest date | 2023-05 | ||||
Fixed interest rate | 5.21% | 5.21% | 5.21% | ||
Total debt | $ 15,000,000 | $ 15,000,000 |
Summary of Company's Debt (Deta
Summary of Company's Debt (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Aug. 27, 2015 | Dec. 31, 2014 |
Debt Instrument [Line Items] | |||
Total debt | $ 99,291 | $ 90,775 | |
Current portion | (4,510) | (5,306) | |
Long-term debt, less current maturities | $ 94,781 | 85,469 | |
US Term Note | |||
Debt Instrument [Line Items] | |||
Interest Rate | 1.83% | ||
Total debt | $ 47,500 | 49,375 | |
Europe Term Loan | |||
Debt Instrument [Line Items] | |||
Interest Rate | 1.50% | ||
Total debt | $ 21,217 | 23,963 | |
US Revolving Note | |||
Debt Instrument [Line Items] | |||
Interest Rate | 1.69% | ||
Total debt | $ 12,000 | 12,000 | |
DEG China Loan | |||
Debt Instrument [Line Items] | |||
Interest Rate | 4.25% | ||
Total debt | $ 3,574 | 4,805 | |
DEG Vietnam Loan | |||
Debt Instrument [Line Items] | |||
Interest Rate | 5.21% | 5.21% | |
Total debt | $ 15,000 | $ 15,000 | |
Capital Lease | |||
Debt Instrument [Line Items] | |||
Total debt | $ 632 |
Derivative Financial Instrume27
Derivative Financial Instruments - Additional Information (Detail) | Mar. 25, 2013EUR (€) | Mar. 31, 2008 | Sep. 30, 2015USD ($)€ / SFr | Sep. 30, 2015EUR (€) | Sep. 30, 2014USD ($) | Sep. 30, 2015EUR (€)€ / SFr |
Derivative [Line Items] | ||||||
Maximum length of time to hedge exposure to foreign currency exchange risk | 1 year | 1 year | ||||
Maximum length of time to hedge exposure to price fluctuations in material commodities | 2 years | 2 years | ||||
Interest Rate Swap | ||||||
Derivative [Line Items] | ||||||
Hedge Ineffectiveness Incurred | $ | $ 0 | $ 0 | ||||
Automotive Segments | ||||||
Derivative [Line Items] | ||||||
Variable Rate | six month EURIBOR | six month EURIBOR | ||||
Fixed interest rate | 0.03% | 0.03% | ||||
Basis spread on variable rate | 1.40% | 1.40% | ||||
Exchange rate | 1.09 | 1.09 | ||||
Derivative exchange rate | 1.46 | 1.46 | ||||
Automotive Segments | Interest Rate Swap | ||||||
Derivative [Line Items] | ||||||
Derivative maturity period | 10 years | |||||
Notional Value | $ 11,167,000 | € 10,000,000 | ||||
Unicredit Bank | ||||||
Derivative [Line Items] | ||||||
Legal settlement for CRS | € | € 144,000 | |||||
Costs of all future obligations under CRS | 9,773,000 | € 8,751,000 | ||||
Past due payments under CRS | $ 12,064,000 | € 10,803,000 |
Information Related to Recurrin
Information Related to Recurring Fair Value Measurement of Derivative Instruments in Our Consolidated Condensed Balance Sheet (Detail) - Fair Value, Inputs, Level 2 $ in Thousands | Sep. 30, 2015USD ($) |
Currency Related Swap | Not a Hedge | |
Derivatives Fair Value [Line Items] | |
Net Asset/(Liabilities) | $ (9,773) |
Liability Derivatives, Fair value | (9,773) |
Currency Related Swap | Not a Hedge | Current Liabilities | |
Derivatives Fair Value [Line Items] | |
Liability Derivatives, Fair value | (3,832) |
Currency Related Swap | Not a Hedge | Noncurrent Liabilities | |
Derivatives Fair Value [Line Items] | |
Liability Derivatives, Fair value | (5,941) |
Foreign Currency Derivatives | Not a Hedge | |
Derivatives Fair Value [Line Items] | |
Net Asset/(Liabilities) | 2,913 |
Asset Derivatives, Fair Value, Total | 4,203 |
Liability Derivatives, Fair value | (1,290) |
Foreign Currency Derivatives | Not a Hedge | Current Assets | |
Derivatives Fair Value [Line Items] | |
Net Asset/(Liabilities) | 1,510 |
Asset Derivatives, Fair Value, Total | 1,510 |
Foreign Currency Derivatives | Not a Hedge | Non-current Assets | |
Derivatives Fair Value [Line Items] | |
Net Asset/(Liabilities) | 2,647 |
Asset Derivatives, Fair Value, Total | 2,647 |
Foreign Currency Derivatives | Cash Flow Hedge | Current Liabilities | |
Derivatives Fair Value [Line Items] | |
Net Asset/(Liabilities) | (1,244) |
Liability Derivatives, Fair value | (1,290) |
Foreign Currency Derivatives | Cash Flow Hedge | Current Assets | |
Derivatives Fair Value [Line Items] | |
Asset Derivatives, Fair Value, Total | 46 |
Commodity Derivatives | Cash Flow Hedge | Current Liabilities | |
Derivatives Fair Value [Line Items] | |
Net Asset/(Liabilities) | (421) |
Liability Derivatives, Fair value | $ (421) |
Information Related to Effect o
Information Related to Effect of Derivative Instruments on Our Consolidated Condensed Statements of Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Derivative Instruments Gain Loss [Line Items] | ||||
Gain (loss) on derivatives | $ (3,884) | $ (758) | $ 1,632 | $ (1,243) |
Other Comprehensive Income (Loss) | Foreign Currency Derivatives | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Gain (loss) on derivatives | (460) | (571) | (1,237) | (411) |
Other Comprehensive Income (Loss) | Interest Rate Swap | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Gain (loss) on derivatives | 42 | 81 | ||
Other Comprehensive Income (Loss) | Commodity Derivatives | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Gain (loss) on derivatives | (373) | (421) | ||
Revaluation of Derivatives | Foreign Currency Derivatives | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Gain (loss) on derivatives | (2,526) | 557 | 3,752 | 398 |
Revaluation of Derivatives | Currency Related Swap | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Gain (loss) on derivatives | 2,392 | (263) | (4,903) | (690) |
Revaluation of Derivatives | Interest Rate Swap | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Gain (loss) on derivatives | (1) | |||
Product Revenues | Foreign Currency Derivatives | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Gain (loss) on derivatives | (129) | (129) | ||
Cost of Sales | Foreign Currency Derivatives | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Gain (loss) on derivatives | (694) | 64 | (1,014) | 94 |
Selling, General and Administrative Expense | Foreign Currency Derivatives | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Gain (loss) on derivatives | (235) | (73) | (189) | (141) |
Foreign Currency (Loss) Gain | Foreign Currency Derivatives | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Gain (loss) on derivatives | $ 31 | $ (606) | $ 320 | $ (1,054) |
Fair Value Measurement - Additi
Fair Value Measurement - Additional Information (Detail) - USD ($) | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2015 | Dec. 31, 2014 | Aug. 27, 2015 | |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Financial assets, fair value | $ 0 | $ 0 | |
Financial liabilities, fair value | 0 | 0 | |
Carrying value | 99,291,000 | 90,775,000 | |
Changes to fair value of assets, realized | 0 | 0 | |
DEG Vietnam Loan | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Carrying value | 15,000,000 | $ 15,000,000 | |
Fair value | 15,269,000 | ||
DEG China Loan | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Carrying value | 3,574,000 | 4,805,000 | |
Fair value | $ 3,666,000 | $ 4,937,000 |