Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2018 | Jul. 27, 2018 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 | |
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 | 36,462,906 |
Consolidated Condensed Balance
Consolidated Condensed Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Current Assets: | ||
Cash and cash equivalents | $ 65,357 | $ 103,172 |
Accounts receivable, less allowance of $1,165 and $973, respectively | 200,024 | 185,058 |
Inventory: | ||
Raw materials | 65,686 | 64,175 |
Work in process | 13,251 | 16,139 |
Finished goods | 39,426 | 41,095 |
Inventory, net | 118,363 | 121,409 |
Derivative financial instruments | 213 | |
Prepaid expenses and other assets | 62,828 | 51,217 |
Total current assets | 446,572 | 461,069 |
Property and equipment, net | 203,949 | 200,294 |
Goodwill | 68,845 | 69,685 |
Other intangible assets, net | 73,574 | 83,286 |
Deferred financing costs | 811 | 936 |
Deferred income tax assets | 82,762 | 30,152 |
Other non-current assets | 13,500 | 37,983 |
Total assets | 890,013 | 883,405 |
Current Liabilities: | ||
Accounts payable | 95,022 | 89,596 |
Accrued liabilities | 72,781 | 77,209 |
Current maturities of long-term debt | 3,433 | 3,460 |
Derivative financial instruments | 454 | 1,050 |
Total current liabilities | 171,690 | 171,315 |
Pension benefit obligation | 7,372 | 7,913 |
Other liabilities | 7,422 | 2,747 |
Long-term debt, less current maturities | 109,467 | 141,209 |
Deferred income tax liabilities | 5,636 | 6,347 |
Total liabilities | 301,587 | 329,531 |
Common Stock: | ||
No par value; 55,000,000 shares authorized, 36,400,971 and 36,761,362 issued and outstanding at June 30, 2018 and December 31, 2017, respectively | 252,740 | 265,048 |
Paid-in capital | 15,838 | 15,625 |
Accumulated other comprehensive loss | (31,843) | (20,444) |
Accumulated earnings | 351,691 | 293,645 |
Total shareholders’ equity | 588,426 | 553,874 |
Total liabilities and shareholders’ equity | $ 890,013 | $ 883,405 |
Consolidated Condensed Balance3
Consolidated Condensed Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Statement Of Financial Position [Abstract] | ||
Accounts receivable, allowance | $ 1,165 | $ 973 |
Common Stock, par value | ||
Common Stock, shares authorized | 55,000,000 | 55,000,000 |
Common Stock, shares issued | 36,400,971 | 36,761,362 |
Common Stock, shares outstanding | 36,400,971 | 36,761,362 |
Consolidated Condensed Statemen
Consolidated Condensed Statements of Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Income Statement [Abstract] | ||||
Product revenues | $ 263,779 | $ 243,378 | $ 525,668 | $ 492,645 |
Cost of sales | 189,308 | 165,060 | 372,652 | 329,176 |
Gross margin | 74,471 | 78,318 | 153,016 | 163,469 |
Operating expenses: | ||||
Net research and development expenses | 21,022 | 21,407 | 44,326 | 40,912 |
Selling, general and administrative expenses | 31,641 | 31,775 | 65,368 | 62,581 |
Restructuring expenses | 6,215 | 7,080 | ||
Total operating expenses | 58,878 | 53,182 | 116,774 | 103,493 |
Operating income | 15,593 | 25,136 | 36,242 | 59,976 |
Interest expense | (1,240) | (1,261) | (2,420) | (2,383) |
Foreign currency gain (loss) | 5,174 | (13,251) | 596 | (14,580) |
Other income | 215 | 260 | 1,326 | 505 |
Earnings before income tax | 19,742 | 10,884 | 35,744 | 43,518 |
Income tax expense | 3,083 | 2,371 | 6,119 | 9,603 |
Net income | $ 16,659 | $ 8,513 | $ 29,625 | $ 33,915 |
Basic earnings per share | $ 0.46 | $ 0.23 | $ 0.81 | $ 0.92 |
Diluted earnings per share | $ 0.45 | $ 0.23 | $ 0.81 | $ 0.92 |
Weighted average number of shares – basic | 36,523,742 | 36,776,545 | 36,560,193 | 36,698,618 |
Weighted average number of shares – diluted | 36,666,999 | 36,840,371 | 36,663,226 | 36,796,168 |
Consolidated Condensed Stateme5
Consolidated Condensed Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net income | $ 16,659 | $ 8,513 | $ 29,625 | $ 33,915 |
Other comprehensive income (loss), gross of tax: | ||||
Foreign currency translation adjustments (loss) gain | (22,994) | 23,285 | (11,253) | 28,800 |
Unrealized (loss) gain on foreign currency derivative securities | (1,561) | 815 | 551 | 3,775 |
Unrealized gain (loss) on commodity derivative securities | 16 | (218) | 48 | |
Other comprehensive (loss) income, gross of tax | (24,555) | 24,116 | (10,920) | 32,623 |
Other comprehensive income (loss), related tax effect: | ||||
Cumulative effect of accounting change due to ASU 2018-02 | (40) | |||
Foreign currency translation adjustments (loss) gain | (156) | (106) | (232) | (109) |
Unrealized (loss) gain on foreign currency derivative securities | 419 | (219) | (148) | (1,014) |
Unrealized gain (loss) on commodity derivative securities | (6) | (59) | (17) | |
Other comprehensive (loss) income, related tax effect | 263 | (331) | (479) | (1,140) |
Other comprehensive (loss) income, net of tax | (24,292) | 23,785 | (11,399) | 31,483 |
Comprehensive (loss) income | $ (7,633) | $ 32,298 | $ 18,226 | $ 65,398 |
Consolidated Condensed Stateme6
Consolidated Condensed Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Operating Activities: | ||
Net income | $ 29,625 | $ 33,915 |
Adjustments to reconcile net income to cash provided by operating activities: | ||
Depreciation and amortization | 25,823 | 21,191 |
Deferred income taxes | (1,799) | (2,278) |
Stock compensation | 4,063 | 4,761 |
Defined benefit plan expense | (103) | 94 |
Provision of doubtful accounts | 204 | 6 |
Loss on sale of property and equipment | 2,156 | 249 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (17,469) | (6,949) |
Inventory | 1,631 | 1,149 |
Prepaid expenses and other assets | (12,094) | (5,147) |
Accounts payable | 10,540 | (2,932) |
Accrued liabilities | (10,034) | (37,944) |
Net cash provided by operating activities | 32,543 | 6,115 |
Investing Activities: | ||
Proceeds from the sale of property and equipment | 698 | 34 |
Final payment for acquisition of subsidiary, net of cash acquired | (15) | (2,000) |
Purchases of property and equipment | (22,138) | (25,750) |
Net cash used in investing activities | (21,455) | (27,716) |
Financing Activities: | ||
Borrowing of debt | 15,000 | |
Repayments of debt | (46,742) | (8,428) |
Cash paid for the cancellation of restricted stock | (882) | (1,100) |
Proceeds from the exercise of Common Stock options | 4,966 | 2,061 |
Repurchase of Common Stock | (20,241) | (53) |
Net cash used in financing activities | (47,899) | (7,520) |
Foreign currency effect | (1,004) | 16,111 |
Net decrease in cash and cash equivalents | (37,815) | (13,010) |
Cash and cash equivalents at beginning of period | 103,172 | 177,187 |
Cash and cash equivalents at end of period | 65,357 | 164,177 |
Supplemental disclosure of cash flow information: | ||
Cash paid for taxes | 18,100 | 58,831 |
Cash paid for interest | 2,608 | 2,190 |
Supplemental disclosure of non-cash transactions: | ||
Common Stock issued to Board of Directors and employees | $ 2,419 | $ 2,229 |
The Company and Subsequent Even
The Company and Subsequent Events | 6 Months Ended |
Jun. 30, 2018 | |
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 provide solutions for automotive passenger comfort and convenience, battery thermal management, remote power generation, patient temperature management, environmental product testing and other consumer and industrial temperature control needs. Our automotive products can be found on the vehicles of nearly all major automotive manufacturers operating in North America, Europe and Asia. We operate in locations aligned with our major customers’ product strategies 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 and new applications from existing technologies to create product and market opportunities for a wide array of thermal management solutions. New Strategic Plan On June 25, 2018, Gentherm announced a new strategic plan intended to improve business performance and position the Company to deliver above-market growth and improved profitability to its shareholders. An important element of the strategy is the Fit-for-Growth initiative that focuses on purchasing excellence, rationalization of research and development activities, reducing selling, general and administrative expense, minimization or elimination of investments in non-core areas and developing a manufacturing footprint commensurate with the new plan. Non-core areas of investment so far identified under the Fit-for-Growth initiative are concentrated in the following areas of Gentherm’s industrial segment: California Advanced Research and Development, Gentherm Global Power Technologies (GPT) and Cincinnati Sub Zero’s Industrial Chamber business (CSZ-IC). The strategy also identified several product categories the Company will exit, including furniture, aviation, battery management electronics, industrial battery packs, automotive thermoelectric generators and other non-core electronics. Fit-for-Growth The Fit-for-Growth cost savings initiative began in January 2018. Consultant costs associated with the initiative, some of which were incurred during the first quarter of 2018, were reported in restructuring expenses for both the three and six-month periods ended June 30, 2018. The total amount of consultant costs incurred during the six-month period ended June 30, 2018 is $1,499. We expect to incur an additional $840 in consultant costs during the second half of 2018. Gentherm recognized $1,737 in one-time employee termination costs in restructuring expenses pertaining to Fit-for-Growth during the three and six-months ended June 30, 2018. Management cannot reasonably estimate the total amount of employee termination costs expected to be incurred from implementing Fit-for-Growth. Lastly, management recognized $11 in contract termination costs in restructuring expenses and does not anticipate additional contract termination costs in the future from implementing Fit-for-Growth. Advanced Research and Development Rationalization and Site Consolidation In June, Gentherm completed a sale of its battery management systems division located in Irvine, California. A loss on the sale of $1,107 was recognized in restructuring expenses during the three and six-month periods ended June 30, 2018. Gentherm also initiated a plan to consolidate advanced research and development operations, including the closure of two leased facilities located in Azusa, California. One of these facilities was vacated in June; the other facility is expected to be vacated at the end of the 2018 third quarter. During the three and six-month periods ended June 30,2018, Gentherm recognized $435 in contract termination costs in restructuring expenses related to the vacated facility, and expects to incur an additional $537 in contract termination costs related to the second facility during the third quarter. Gentherm recognized $881 in one-time employee termination costs in restructuring expenses for employees whose termination was effective on or before June 30, 2018. We expect to incur $166 in additional one-time employee termination costs for employees whose termination benefits are contingent on a continuation of service through October 2018. Note 1 – The Company and Subsequent Events – Continued Lastly, during the three and six-month periods ended June 30, 2018, Gentherm recognized $1,200 in restructuring expenses for the disposal of long-lived assets controlled and used in Azusa, California. We do not expect to incur additional asset disposal costs from our exit from Azusa, California. GPT and CSZ-IC Gentherm is in the early stages of developing a program to identify potential buyers for GPT and CSZ-IC. For the six-month period ended June 30, 2018, Gentherm recognized $210 in one-time employee termination costs in restructuring expenses relating to the planned divestitures. An estimate of the total cost expected from the divestitures could not be determined as of June 30, 2018. Restructuring Liability A reconciliation of the beginning and ending restructuring liability is as follows: One-Time Employee Termination Benefit Costs Contract Termination Costs Consulting Costs Asset Disposal Costs Total Six Months Ended June 30, 2018 Balance, beginning of period $ — $ — $ — $ — $ — Additions, charged to costs 2,828 446 1,499 2,307 7,080 Payments and impairments (1,951 ) (18 ) (867 ) (2,307 ) (5,143 ) Balance, end of period $ 877 $ 428 $ 632 $ — $ 1,937 The cumulative amount of restructuring expenses incurred and recognized in the automotive and industrial segments during the six months ended June 30, 2018 was $3,247 and $3,833, respectively. See Note 5 to our consolidated condensed financial statements for a description of our reportable segments as well as their proportional contribution to the Company’s reported product revenues and operating income. U.S. Tax Reform The Tax Cuts and Jobs Act (the “Tax Act”) was enacted on December 22, 2017. The Tax Act reduces the U.S. federal corporate tax rate from 35% to 21%, requires companies to pay a one-time transition tax on all offshore earnings that were previously tax deferred and creates new taxes on certain foreign sourced earnings. As of December 31, 2017, and in accordance with guidance provided by Staff Accounting Bulletin No. 118 (SAB 118), the Company had not completed its accounting for the tax effects of the Tax Act; however, in certain cases, as described below the Company made a provisional estimate of the effects on our existing deferred tax balances and the one-time transition tax. For the year ended December 31, 2017, the provision for income taxes includes a provisional income tax expense of $20,153 related to items for which the Company was able to determine a reasonable estimate. For the six-month period ended June 30, 2018, there have been no changes to the provisional income tax expenses booked in 2017. In all cases, we will continue to make and refine our calculations as additional analysis is completed. In addition, the Company’s estimates may be affected as additional regulatory guidance is issued with respect to the Tax Act. Any adjustments to the provisional amounts will be recognized as a component of the provision for income taxes in the period in which such adjustments are determined, but in any event, no later than the fourth quarter of 2018, in accordance with SAB 118. Deferred tax assets and liabilities The Company remeasured its U.S. deferred tax assets and liabilities at 21%. However, the Company is still analyzing certain aspects of the Tax Act and refining the calculations, which could potentially affect the measurement of these balances or potentially give rise to new deferred tax amounts. In the year ended December 31, 2017, the provision for income taxes included provisional income tax expense of $5,808 related to the remeasurement of deferred tax balances. For the six-month period ended June 30, 2018, there have been no changes to the provisional income tax expenses in 2017. Note 1 – The Company and Subsequent Events – Continued Transition Tax on Deferred Foreign Earnings The one-time transition tax is based on the Company’s post-1986 earnings and profits (“E&P”) that were previously deferred from U.S. income taxes. In the year ended December 31, 2017, the provision for income taxes included provisional income tax expense of $23,923 related to the one-time transition tax liability of the Company’s foreign subsidiaries. The Company has not completed its calculation of the total post-1986 E&P for these foreign subsidiaries. Further, the transition tax is based in part on the amount of those earnings held in cash and other specified assets. This amount may change when the Company finalizes the calculation of post-1986 E&P previously deferred from U.S. income taxes and the amounts held in cash or other specified assets. For the six-month period ended June 30, 2018, there have been no changes to the provisional income tax expenses booked in 2017. A benefit of $9,578 was included in the provision for income taxes for the year-ended December 31, 2017 to offset the one-time transition tax related to the previous deferred tax liability that existed for the undistributed foreign earnings that were not permanently reinvested. For the three and six-month periods ended June 30, 2018, there have been no changes to the provisional income tax benefit booked in 2017 related to this item. However, we continue to recognize a deferred tax liability related to foreign withholding tax that will be incurred for undistributed foreign earnings that are not permanently reinvested. Subsequent Events We have evaluated subsequent events through the date that our consolidated condensed financial statements are issued. No events have taken place that meet the definition of a subsequent event requiring adjustments to or disclosures in this Form 10-Q. |
Basis of Presentation and New A
Basis of Presentation and New Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation and New Accounting Pronouncements | Note 2 – Basis of Presentation and New Accounting Pronouncements Accounting Principles Our unaudited consolidated condensed financial statements and accompanying notes 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, 2017 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. Certain reclassifications of prior year’s amounts have been made to conform with the current year’s presentation. Notably, results from asset disposals during the six-month period ended June 30, 2017 were reclassified from other income to cost of sales. Operating results for the six-month period ended June 30, 2018 are not necessarily indicative of the results that may be expected for the year ending December 31, 2018. 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, 2017. Consolidation The consolidated financial statements at June 30, 2018 and December 31, 2017 and for the six-month period ended June 30, 2018 and 2017, reflect the consolidated financial position and consolidated operating results of the Company. Investments in affiliates in which Gentherm would not have control, but would have the ability to exercise significant influence over operating and financial policies, would be accounted for under the equity method. Investment for which Gentherm is not able to exercise significant influence over the investee and which do not have readily determinable fair values are accounted for under the cost method. Intercompany accounts have been eliminated in consolidation. Use of Estimates The presentation of financial statements in conformity with generally accepted accounting principles in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses. Actual results could differ from those estimates and assumptions. Note 2 – Basis of Presentation and New Accounting Pronouncements – Continued Revenue Recognition Revenue is recognized from agreements containing enforceable rights and obligations when promised goods are delivered or services are completed, the price is fixed or determinable, and payment has been received or is collectable. The amount of revenue recognized is net of the Company’s obligation for returns, rebates, discounts, taxes, if any, collected from customers, and consideration that is paid to a customer, unless such payment is in exchange for a distinct good or service. The amount of revenue recognized from a contract with a customer reflects the amount of consideration expected to be received in exchange for the transfer of good or services. Automotive Revenues The Company sells automotive seat comfort systems, specialized automotive cable systems and automotive thermal convenience products under long-term supply agreements (“LTAs”) and, for arrangements that are less than one year in length, purchase orders. LTAs are multiple-year business awards to provide custom designed parts for a particular automotive vehicle program in quantities and at intervals of the customer’s choosing. LTAs are often multiple-element agreements. The main element in LTAs are production parts; distinct promises from which the customer can benefit separately from other promises or elements in the contract. A second element in LTAs are production part purchase options that provide customers the ability to purchase additional parts at set prices in the future. Judgement is used to determine whether a production part purchase option represents a material right to the customer and should be accounted for as a separate performance obligation. LTAs that provide customers with a purchase option discount incrementally higher than the range discounts typically given to automotive customers contain a material right. The magnitude of change in the year-over-year option prices and the total number of units expected to be ordered are important factors in the calculation of the option’s fair value and the allocation of transaction price. The price for parts is set at the point in time the customer exercises its option to purchase additional parts from the Company. A firm order, stating the number of each production part to be delivered, is an independent contract with a discrete transaction price. Revenues are allocated to production parts based on the relative standalone selling prices observed on the LTAs. As a practical alternative to estimating the standalone selling price of an option that provides a customer with a material right, the Company allocates transaction price to options by reference to the production part volumes expected to be ordered and the consideration expected to be received. The Company satisfies its obligation to provide product parts to the customer upon shipment. When an option to purchase additional production parts in the future represents a material right, the customer effectively is paying Gentherm in advance for production parts each time it exercises the option by placing a firm order commitment. Revenue from options containing a material right are recognized on the basis of direct measurement of the value of production parts transferred to date relative to the total number of production parts expected to be delivered over the life of the vehicle program. Judgement is required to determine the pattern and timing with which an option containing a material right is satisfied and the production part is transferred to a customer. Industrial Revenues Our industrial business unit generates revenue from the sale of products and services by our wholly-owned subsidiaries Cincinnati Sub-Zero (“CSZ”) and GPT. Industrial business unit revenues and medical business unit revenues discussed below are reported within the Company’s industrial reportable segment (see Note 5). Industrial business unit customers commonly enter into multiple-element agreements for the purchase of products and services. Installation services, for example, are separate and distinct performance obligations that are often included in contracts to purchase customized environmental test chambers. Depending on the application, delivery of an environmental test chamber or remote power generation system to the customer’s place of business can range from two weeks to nine months from commencement of the contract. Installation services, while reliant on the specifications and timing from the customer, rarely remain incomplete more than two months after delivery. Note 2 – Basis of Presentation and New Accounting Pronouncements – Continued Revenues allocated to environmental test chambers or remote power systems are based on the stand alone selling price of products themselves. Judgement is used to determine the degree to which early pay discounts and other credits are utilized in the calculation of standalone selling price, and only included to the extent it is probable that a significant reversal of any incremental revenue will not occur. Revenues are recognized at the point in time the chamber or power system is shipped to the customer. For contracts that also include a promise for installation, the portion of total transaction price allocated to the installation is recognized as revenue at the point in time the installation is complete. Revenues from our medical business unit are generated from the sale of products and equipment. Our medical product and equipment focus on body and blood temperature management. The Company sells medical products and equipment primarily through distributor and group purchasing organization agreements. These agreements allow member participants to the distributor or group purchasing organization to make purchases at discounted prices negotiated by the distributor or group purchasing organization. A rebate is incurred at the point in time a member participant purchases product covered under these types of agreements. Rebates are accounted for as variable consideration, using an expected value, probability weighted approach, based on the level of sales to the distributor and the time lag between the initial sale and the rebate claim in determining the transaction price of a contract. Revenue is recognized at the point in time the medical products or equipment is transferred to the customer. Contract Balances We record a receivable when revenue is recognized at the time of invoicing and unearned revenue when revenue is recognized subsequent to invoicing. For contracts where control of the goods or service is transferred to the customer over time, or whose terms require the customer to make milestone payments throughout the fulfillment period, the timing of revenue recognition is likely to differ from the timing of invoicing to customers. The opening balance of our accounts receivable, net of allowance for doubtful accounts, was $185,058 as of January 1, 2018. We record an allowance for doubtful accounts once exposure to collection risk of an account receivable is specifically identified. We analyze the length of time an account receivable is outstanding, as well as a customer’s payment history and ability to pay to determine the need to record an allowance for doubtful accounts. Activity in the allowance for doubtful accounts was as follows: Six Months Ended June 30, 2018 Balance, beginning of period $ 973 Additions charged to costs 615 Recoveries recognized in costs (411 ) Currency impact $ (12 ) Balance, end of period $ 1,165 Most of Gentherm’s unearned revenue pertains to LTAs containing a material right. In the early periods of an LTA containing a material right, when payments collected from the customer are greater than the standalone selling price of the production parts, revenue associated with the material right is deferred. In future periods, when amounts collected from customers as payment is less than the standalone selling price of the production parts delivered, the deferred revenue is reversed into revenue. For LTAs containing a material right and, thus, the timing of revenue recognition is likely to differ from the timing of invoicing to customer, the aggregate amount of transaction price allocated to material rights that remain unsatisfied as of June 30, 2018 is $2,681. We expect to recognize into revenue, 33% of this balance in the next 12 months, and the remaining 52%, 11% and 4% in 2019, 2020 and 2021, respectively. Gentherm often requires milestone payments for contracts to provide environmental test chambers or remote power systems to customers. Milestone payments do not provide the Company with a right to payment for the work completed to date and do not represent the satisfaction of a performance obligation. Milestone payments are deferred and reported within unearned revenue until construction is complete and the unit has been delivered or is installed. If the environmental test chamber contract includes a separate promise to provide installation services, any installation-related payments received from the customer are deferred until the point in time the installation is complete. Note 2 – Basis of Presentation and New Accounting Pronouncements – Continued The total amount of unearned revenue associated with environmental chamber and remote power system contracts, including environmental chamber contracts that include a separate obligation to provide installation, as of June 30, 2018 is $3,087. This entire balance is expected to be recognized into revenue during the next 12 months. See Note 10 for information regarding the unearned revenue associated with these arrangements, including unearned revenue by segment and amounts recognized into revenue during the most recent six-month period ending June 30, 2018. Payment terms for contracts with customers generally range from 30 to 120 days from the date of shipment of goods or completion of service or, if applicable, the scheduled milestone payment due date, and do not include components designed to provide customers with financing. Assets Recognized from the Costs to Obtain a Contract with a Customer We recognize an asset for the incremental costs of obtaining a contract with a customer if the benefits of those costs are expected to be realized for a period greater than one year. Total capitalized costs to obtain a contract were immaterial during the periods presented and are included in prepaid expenses and other assets and other non-current assets. Recently Adopted Accounting Pronouncements Revenue from Contracts with Customers In May 2014, the FASB issued Accounting Standard Update (“ASU”) 2014-09, “Revenue from Contracts with Customers.” ASU 2014-09 was developed to enable financial statement users a 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 good or services. Issuers are to use a five-step contract review model to ensure revenue is measured, recognized, and disclosed in accordance with this principle. The FASB issued several amendments to the update, including a one-year deferral of the original effective date, and new methods for identifying performance obligations that are intended to reduce the cost and complexity of compliance. We adopted ASU 2014-09 and related amendments effective January 1, 2018 using the cumulative catch-up transition method, which required us to disclose the cumulative effect of initially applying the update recognized at the date of initial application. We elected to apply the guidance in ASU 2014-09 to contracts that were not completed at January 1, 2018. The most significant impact from adoption of ASU 2014-09 occurred within our Automotive segment and relates to our accounting for production part purchase options that grant customers a material right to purchase additional parts under long-term supply agreements in the future. Due to the complexity of certain of our automotive supply contracts, the actual revenue recognition treatment for customer purchase options will depend on contract-specific terms and could vary from other contracts that are similar in nature. Revenue recognition related to goods and services reported in the Industrial segment remains substantially unchanged. The amount by which each financial statement line item was affected by application of ASU 2014-09 and related amendments during the three and six-month periods ended June 30, 2018 is as follows: Note 2 – Basis of Presentation and New Accounting Pronouncements – Continued Revenue Based on Previously Effective Guidance New Revenue Standard Adjustment Revenue Based on New Revenue Standard Three Months Ended June 30, 2018 Product revenues $ 263,058 $ 721 $ 263,779 Income tax expense 3,232 (149 ) 3,083 Net income 16,087 572 16,659 Basic earnings per share 0.44 0.02 0.46 Diluted earnings per share 0.44 0.02 0.45 Six Months Ended June 30, 2018 Product revenues $ 524,267 $ 1,401 $ 525,668 Income tax expense 6,409 (290 ) 6,119 Net income 28,514 1,111 29,625 Basic earnings per share 0.78 0.03 0.81 Diluted earnings per share 0.78 0.03 0.81 Revenue Based on Previously Effective Guidance New Revenue Standard Adjustment Revenue Based on New Revenue Standard Balance Sheet June 30, 2018 Accounts receivable, net of allowance for doubtful accounts $ 200,024 $ — $ 200,024 Accrued liabilities $ 70,100 $ 2,681 $ 72,781 Unearned Revenue $ 3,087 $ 2,681 $ 5,768 Deferred income taxes, net $ 76,578 $ 548 $ 77,126 Accumulated earnings $ 353,824 $ (2,133 ) $ 351,691 Adoption of ASU 2014-09 and related amendments had no impact to cash from or used in operating, investing or financing activities on our consolidated condensed statements of cash flows. Statement of Cash Flows In August 2016, the FASB issued ASU 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments.” ASU 2016-15 provides guidance on the classification of eight specific cash receipt and cash payment transactions in the statement of cash flows. The Company focused its evaluation on the following transactions to determine the effect ASU 2016-15 will have on the Company’s Consolidated Statements of Cash Flows: 1) Debt extinguishment payments and debt prepayments are to be shown as cash outflows for financing activities. Presently, Gentherm classifies debt extinguishment payments within operating activities. 2) Payments made to settle contingent consideration liabilities not made soon after the acquisition date of a business combination should be recognized as cash outflows for financing activities up to the amount of the liability recognized at the acquisition date. Payments, or the portion of a payment, to settle contingent consideration liabilities that exceed the amount of the liability recognized at the acquisition date will be recognized as cash outflows for operating activities. 3) Cash receipts from the settlement of insurance claims, excluding those related to corporate-owned life insurance policies shall be classified on the basis of the related insurance coverage. For example, proceeds received to cover claims issued under product recall liability insurance would be classified as cash inflows from operating activities. 4) Cash receipts from the settlement of corporate-owned life insurance policies shall be classified as cash inflows from investing activities. Note 2 – Basis of Presentation and New Accounting Pronouncements – Continued We have adopted ASU 2016-15 and related amendments effective January 1, 2018. None of the cash receipt and cash payment transactions addressed by the update, including those that were not the focus of management’s evaluation, occurred during any of the periods presented in this report. Adoption of this update and related amendments did not have a material impact on the cash flows of the Company. Income Taxes In October 2016, the FASB issued ASU 2016-16, “Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory.” ASU 2016-16 modifies the current prohibition to recognize deferred income taxes from differences between the tax basis of assets in the buyer’s tax jurisdiction and their cost resulting from an intra-entity transfer from one tax-paying component to another tax-paying component of the same consolidated group. Under current GAAP, deferred income taxes for intra-entity asset transfers are not recognized until the asset is sold to an outside party. ASU 2016-16 allows entities to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. ASU 2016-16 is effective for fiscal years and interim periods beginning after December 15, 2017. The amendments in ASU 2016-16 should be applied on a modified retrospective basis through a cumulative-effect adjustment directly to accumulated earnings as of the beginning of the period of adoption. We adopted ASU 2016-16 and related amendments effective January 1, 2018 on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of such adoption date. As a result of the amendments in ASU 2016-16, a favorable adjustment of $31,645 was recorded directly to retained earnings during the six-month period ending June 30, 2018. The new deferred tax assets will be recognized ratably over the useful life the applicable assets. Accumulated Other Comprehensive Income In February 2018, the FASB issued ASU 2018-02, “Income Statement – Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.” ASU 2018-02 provides a remedy to a narrow-scope financial reporting issue created by the Tax Act. The Tax Act required entities to adjust deferred tax assets and liabilities to reflect the impact from newly enacted lower corporate income tax rates, and recognize the effect in income from continuing operations. This requirement applied to all deferred tax assets and liabilities, even those which arose from transactions originally recognized in other comprehensive income. The amendments in ASU 2018-02 allow adjustments to deferred tax assets and liabilities due to newly enacted lower corporate income tax rates to be recognized in retained earnings, if those deferred tax balances arose from transactions originally recognized in other comprehensive income. Income tax effects are released from accumulated other comprehensive income and recorded against the deferred tax balance in the consolidated balance sheet when the underlying activity is realized. ASU 2018-02 is effective for annual and interim periods beginning after December 15, 2018. Early adoption of the amendments in this update is permitted, including adoption in any interim period for which financial statements have not yet been issued. The amendments in ASU 2018-02 must be applied in the period of adoption or retrospectively to each period in which the effect of the change in U.S. federal corporate income tax rate in the Tax Act is recognized. We elected to early adopt ASU 2018-02 and related amendments effective January 1, 2018. An adjustment of $40 was recognized against retained earnings for effect of the change in the federal corporate income tax rate on deferred tax amounts. There are no related adjustments to the Company’s valuation allowance and no other income tax effects from the Tax Act on balances that remain in accumulated other comprehensive income were reclassified. Tax Act In January 2018, the FASB released guidance on the accounting for tax on the global intangible low-taxed income (“GILTI”) provisions of the Tax Act. The GILTI provisions impose a tax on foreign income in excess of deemed return on tangible assets of foreign corporations. During the first quarter of 2018, the Company elected to treat any potential GILTI inclusions as a period cost. Note 2 – Basis of Presentation and New Accounting Pronouncements – Continued Recently Issued Accounting Pronouncements Not Yet Adopted Goodwill Impairment In January 2017, the FASB issued ASU 2017-04, “Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment.” ASU 2017-04 modified the concept of impairment of goodwill to be a condition that exists when the carrying value of a reporting unit that includes goodwill exceeds its fair value. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value, limited to the total amount of goodwill allocated to that reporting unit. Entities no longer will determine goodwill impairment by calculating the implied fair value of goodwill by assigning the fair value of a reporting unit to all of its assets and liabilities as if the reporting unit had been acquired in a business combination. ASU 2017-04 is effective for annual and any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption of the amendments in this update is permitted. The amendments in ASU 2017-04 must be applied on a prospective basis and in the initial period of adoption, entities must disclose the nature of and reason for the change in accounting principle. The Company expects adoption of ASU 2017-04 will reduce the complexity of evaluating goodwill for impairment. Leases In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842).” ASU 2016-02 requires lessees to recognize on their balance sheet a liability to make lease payments and a right-of-use asset representing its right to use the underlying asset for the lease term. Payments to be made in optional periods should be included in the measurement of lease assets and liabilities if the lessee is reasonably certain it will exercise an option to extend the lease or not exercise an option to terminate the lease. While ASU 2016-02 continues to differentiate between finance or capital leases and operating leases, the principal change from current lease accounting guidance is that lease assets and liabilities arising from operating leases will be recognized on the balance sheet. ASU 2016-02 is effective for fiscal years and interim periods beginning after December 15, 2018. Early adoption of the amendments in this update are permitted. Lessees are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach which includes a number of practical expedients, including the ability to use hindsight in evaluating lessee options to extend or terminate a lease. An entity that elects to apply the practical expedients will be required to recognize a right-of-use asset and lease liability for all operating leases at each reporting date based on the present value of the remaining minimum rental payment that were tracked and disclosed under previous GAAP. We are currently in the process of determining the impact the implementation of ASU 2016-02 will have on the Company’s financial statements. |
Etratech Acquisition
Etratech Acquisition | 6 Months Ended |
Jun. 30, 2018 | |
Business Combinations [Abstract] | |
Etratech Acquisition | Note 3 — Etratech Acquisition Etratech designs, develops, manufactures and sells electronic control modules and control systems to customers across a range of industries, including automotive, recreational vehicles and marine, HVAC systems and medical, amongst others. Each function is part of an integrated, customer-focused process designed to exceed customer expectations for product quality, reliability and cost. Etratech’s global manufacturing footprint will enable us to provide customers with scalable and flexible manufacturing solutions across a variety of application and geographies. Results of operations for Etratech are included in the Company’s consolidated condensed financial statements beginning November 1, 2017. Etratech contributed $15,201 and $30,389 in product revenues and $678 and $426 in net income for the three and six-month periods ended June 30, 2018, respectively. Note 3 – Etratech Acquisition – Continued Purchase Price Allocation The purchase price of $65,009, net of cash acquired of $670, has been allocated to the values of assets acquired and liabilities assumed as of November 1, 2017. The purchase price allocation was finalized March 31, 2018. The purchase price allocation as of November 1, 2017 was as follows: Accounts receivable $ 12,654 Inventory 7,014 Prepaid expenses and other assets 535 Property and equipment 6,205 Customer relationships 24,774 Technology 8,588 Goodwill 14,881 Assumed liabilities (9,642 ) Net assets acquired 65,009 Cash acquired 670 Purchase price $ 65,679 The gross contractual amount due of accounts receivable is $12,654, all of which is expected to be collectible. Supplemental Pro Forma Information The unaudited pro forma combined historical results including the amounts of Etratech revenue and earnings that would have been included in the Company’s consolidated statements of income had the acquisition date been January 1, 2017 is as follows: Three Months Ended Six Months Ended 2017 2017 Product revenues $ 257,526 $ 519,476 Net income $ 9,072 $ 34,846 Basic earnings per share $ 0.25 $ 0.95 Diluted earnings per share $ 0.25 $ 0.95 The pro forma information includes adjustments for the effect of the amortization of intangible assets recognized in the acquisition. This pro forma information is not indicative of future operating results. Goodwill We recorded goodwill of approximately $14,881 arising from the acquisition. The acquired goodwill represents intangible assets that do not qualify for separate recognition. It is estimated that approximately $8,651 of the goodwill recognized will not be deductible for income tax purposes. Intangible Assets In conjunction with the acquisition, intangible assets of $33,362 were recorded. The Company’s estimate of the fair value of these assets at the time of the acquisition was determined with the assistance of an independent third-party valuation firm. As part of the estimated valuation, an estimated useful life for the assets was determined. Note 3 – Etratech Acquisition – Continued Intangible assets, net consisted of the following (balances are lower as of June 30, 2018 than as of November 1, 2017, the acquisition date, due to fluctuations in foreign currency exchange rates totaling $1,027): June 30, 2018 Gross Value Accumulated Net Value Useful Life Customer relationships $ 24,006 $ 1,378 $ 22,628 8 -12 yrs Technology 8,329 1,084 7,245 5 -6 yrs Total $ 32,335 $ 2,462 $ 29,873 Amortization expenses of $889 and $1,847 during the three and six months ended June 30, 2018, respectively, were recognized in our consolidated condensed statement of income as follows: Three Months Ended Six Months Ended Product revenues $ 498 $ 1,034 Cost of sales 391 813 Amortization expense for the prospective five years is expected to be as follows: July 1, 2018 through December 31, 2018 $ 1,844 2019 $ 3,688 2020 $ 3,688 2021 $ 3,627 2022 $ 3,208 2023 $ 2,546 Property, Plant & Equipment Property and equipment consist of the following: Asset category Useful life Amount Leasehold improvements 10 yrs $ 342 Machinery and equipment 4-11 yrs 5,248 Furniture and fittings 4 yrs 230 Motor vehicles 3 yrs 25 Computer hardware and software 1 yrs 360 $ 6,205 |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Earnings per Share | Note 4 – 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 Six Months 2018 2017 2018 2017 Weighted average number of shares for calculation of basic EPS 36,523,742 36,776,545 36,560,193 36,698,618 Stock options under equity incentive plans 143,257 63,826 103,033 97,550 Weighted average number of shares for calculation of diluted EPS 36,666,999 36,840,371 36,663,226 36,796,168 The following 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 Six Months 2018 2017 2018 2017 Stock options under equity incentive plans 1,530,000 1,857,284 1,742,500 1,857,284 |
Segment Reporting
Segment Reporting | 6 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Segment Reporting | Note 5 – Segment Reporting Segment information is used by management for making strategic 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 – the combined operating results of GPT, CSZ and Gentherm’s advanced research and development division. Advanced research and development includes efforts focused on improving the efficiency of thermoelectric technologies and advanced heating wire technology as well as other applications. Unlike research and development that relates to a specific program application for a customer, advanced research and development activities affect products and technologies that are not currently generating product revenue. The segment includes government sponsored research projects. 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 six-month periods ended June 30, 2018 and 2017. 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 June 30, 2018, goodwill assigned to our Automotive and Industrial segments were $38,072 and $30,773, respectively. As of June 30, 2017, goodwill assigned to our Automotive and Industrial segments were $22,724 and $30,773, respectively. Note 5 – Segment Reporting – Continued Three Months Ended June 30, Automotive Industrial Reconciling Consolidated 2018: Product revenues $ 240,823 $ 22,956 $ — $ 263,779 Depreciation and amortization 10,970 1,301 660 12,931 Restructuring expenses 2,529 3,686 — 6,215 Operating income (loss) 37,240 (7,881 ) (13,766 ) 15,593 2017: Product revenues $ 215,812 $ 27,566 $ — $ 243,378 Depreciation and amortization 9,048 1,288 663 10,999 Operating income (loss) 40,066 (2,719 ) (12,211 ) 25,136 Six Months Ended June 30, Automotive Industrial Reconciling Consolidated 2018: Product revenues $ 480,842 $ 44,826 $ — $ 525,668 Depreciation and amortization 21,779 2,652 1,392 25,823 Restructuring expenses 3,247 3,833 — 7,080 Operating income (loss) 78,404 (14,561 ) (27,601 ) 36,242 2017: Product revenues $ 437,645 $ 55,000 $ — $ 492,645 Depreciation and amortization 17,179 2,706 1,306 21,191 Operating income (loss) 90,743 (5,134 ) (25,633 ) 59,976 Total product revenues information by geographic area is as follows: Three Months Ended June 30, 2018 2017 United States $ 123,512 47 % $ 114,141 47 % China 24,927 9 % 19,962 8 % Germany 23,626 9 % 17,694 7 % South Korea 15,783 6 % 17,754 7 % Japan 13,275 5 % 13,093 5 % Canada 12,590 5 % 11,113 5 % Czech Republic 11,106 4 % 9,944 4 % United Kingdom 8,467 3 % 8,439 4 % Mexico 4,848 2 % 5,322 2 % Other 25,645 10 % 25,916 11 % Total Non-U.S. 140,267 53 % 129,237 53 % $ 263,779 100 % $ 243,378 100 % Note 5 – Segment Reporting – Continued Six Months Ended June 30, 2018 2017 United States $ 243,862 46 % $ 233,664 47 % China 49,131 9 % 40,427 8 % Germany 45,988 9 % 35,562 7 % South Korea 29,605 6 % 34,145 7 % Japan 26,848 5 % 27,376 6 % Canada 25,703 5 % 22,042 5 % Czech Republic 22,821 4 % 20,651 4 % United Kingdom 19,312 4 % 18,107 4 % Mexico 11,146 2 % 10,692 2 % Other 51,252 10 % 49,979 10 % Total Non-U.S. 281,806 54 % 258,981 53 % $ 525,668 100 % $ 492,645 100 % |
Debt
Debt | 6 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Debt | Note 6 – Debt Amended Credit Agreement The Company, together with certain direct and indirect subsidiaries, have an outstanding credit agreement (as amended, the “Credit Agreement”) with a consortium of lenders and Bank of America, N.A., as administrative agent. The Credit Agreement provides the Company a revolving credit note (“U.S. Revolving Note”) with a maximum borrowing capacity of $350,000. All subsidiary borrowers and guarantors participating in the Credit Agreement have entered into a related pledge and security agreement. The security agreement grants a security interest to the lenders in substantially all of the personal property of subsidiaries designated as borrowers 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). The Credit Agreement restricts the amount of dividend payments the Company can make to shareholders. The Credit Agreement requires the Company to maintain a minimum Consolidated Interest Coverage Ratio and Consolidated Leverage Ratio. Definitions for these financial ratios are provided in the Credit Agreement. Under the Credit Agreement, U.S. Dollar denominated loans bear interest at either a base rate (“Base Rate Loans”) or Eurocurrency rate (“Eurocurrency Rate Loans”), plus a margin (“Applicable Rate”). The rate for Base Rate Loans is equal to the highest of the Federal Funds Rate (1.91% at June 30, 2018) plus 0.50%, Bank of America’s prime rate (5.0% at June 30, 2018), or a one-month Eurocurrency rate (0.00% at June 30, 2018) plus 1.00%. The rate for Eurocurrency Rate Loans denominated in U.S. Dollars is equal to the London Interbank Offered Rate (2.09% at June 30, 2018). All loans denominated in a currency other than the U.S. Dollar must be Eurocurrency Rate Loans. Interest is payable at least quarterly. The Applicable Rate varies based on the Consolidated Leverage Ratio reported by the Company. 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 1.25% and 2.00%, respectively, for Eurocurrency Rate Loans and 0.25% and 1.00%, respectively, for Base Rate Loans. The Company also has two fixed interest rate loans with the German Investment Corporation (“DEG”), a subsidiary of KfW Banking Group, a Germany government-owned development bank: DEG China Loan The first DEG loan, a loan we used to fund capital investments in China (the “DEG China Loan”), is subject to semi-annual principal payments that began March, 2015 and will end 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, as defined by the DEG China Loan agreement, based on the financial statements of Gentherm’s wholly owned subsidiary, Gentherm Automotive Systems (China) Ltd. Note 6 – Debt – Continued DEG Vietnam Loan The Company’s second fixed interest rate loan agreement with DEG was used to finance the construction and set up of the Vietnam production facility (“DEG Vietnam Loan”). The DEG Vietnam Loan is subject to semi-annual principal payments that began November, 2017 and will end May, 2023. Under the terms of the DEG Vietnam Loan, the Company must maintain a minimum Current Ratio, Equity Ratio and Enhanced Equity Ratio, as defined by the DEG Vietnam Loan agreement, based on the financial statements of Gentherm’s wholly owned subsidiary, Gentherm Vietnam Co. Ltd. Undrawn borrowing capacity under the U.S. Revolving Note was $250,934 as of June 30, 2018. The following table summarizes the Company’s debt at June 30, 2018 and at December 31, 2017. June 30, 2018 December 31, Interest Principal Principal Credit Agreement: Revolving Note (U.S. Dollar Denominations) 3.59 % $ 99,000 $ 129,000 DEG China Loan 4.25 % 1,400 1,919 DEG Vietnam Loan 5.21 % 12,500 13,750 Total debt 112,900 144,669 Current portion (3,433 ) (3,460 ) Long-term debt, less current maturities $ 109,467 $ 141,209 The scheduled principal maturities of our debt as of June 30, 2018 are as follows: Year Revolving (U.S. Dollar) DEG DEG Total Remainder of 2018 $ — $ 467 $ 1,250 $ 1,717 2019 — 933 2,500 3,433 2020 — — 2,500 2,500 2021 99,000 — 2,500 101,500 2022 — — 2,500 2,500 2023 — — 1,250 1,250 Total $ 99,000 $ 1,400 $ 12,500 $ 112,900 Principal outstanding under the U.S. Revolving Note will be due and payable in full on March 17, 2021. As of June 30, 2018, we were in compliance, in all material respects, with all terms as outlined in the Credit Agreement, DEG China Loan and DEG Vietnam Loan. |
Derivative Financial Instrument
Derivative Financial Instruments | 6 Months Ended |
Jun. 30, 2018 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Note 7 – 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. 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, intercompany investments and include exposures to the European Euro, Mexican Peso, Canadian Dollar, Hungarian Forint, Macedonian Denar, Ukrainian Hryvnia, Japanese Yen, Chinese Renminbi, Korean Won and Vietnamese Dong. 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. We had foreign currency derivative contracts with a notional value of $22,397 and $29,273 outstanding as of June 30, 2018 and December 31, 2017, respectively. Note 7 – Derivative Financial Instruments – Continued The maximum length of time over which we hedge our exposure to price fluctuations in material commodities is two years. We had copper commodity swap contracts with a notional value of $0 and $404 outstanding at June 30, 2018 and December 31, 2017, respectively. We do not enter into derivative financial instrument arrangements 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. For derivative contracts which can be classified as a cash flow hedge, the effective portion of the change in the fair value of the derivative is recorded to accumulated other comprehensive income (loss) in the consolidated condensed balance sheet. When the underlying hedge transaction is realized, the gain or loss included in accumulated other comprehensive income (loss) is recorded in earnings in the consolidated condensed statements of income on the same line as the gain or loss on the hedged item attributable to the hedged risk. We record the ineffective portion of foreign currency hedging instruments, if any, to foreign currency gain (loss) in the consolidated condensed statements of income. See Note 9 for unrealized gains (losses) associated with derivatives reported in accumulated other comprehensive income as of December 31, 2017 that was reclassified into earnings during 2018. 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 using benchmark rates at commonly quoted intervals for the instrument’s full term. Information related to the recurring fair value measurement of derivative instruments in our consolidated condensed balance sheet as of June 30, 2018 is as follows: Asset Derivatives Liability Derivatives Net Asset/ Hedge Designation Fair Value Hierarchy Balance Sheet Fair Balance Sheet Fair Foreign currency derivatives Cash flow hedge Level 2 Current assets $ — Current liabilities $ (454 ) $ (454 ) Information relating to the effect of derivative instruments on our consolidated condensed statements of income is as follows: Location Three Months Ended June 30, 2018 Three Months Ended June 30, 2017 Six Months Ended June 30, 2018 Six Months Ended June 30, 2017 Foreign currency derivatives Cost of sales $ (524 ) $ 351 $ (605 ) $ (121 ) Selling, general and administrative 22 — 75 (216 ) Other comprehensive income (1,561 ) 815 551 3,775 Foreign currency (loss) gain 10 (20 ) 47 (77 ) Total foreign currency derivatives $ (2,053 ) $ 1,146 68 $ 3,361 Commodity derivatives Cost of sales $ — $ 10 145 $ 29 Other comprehensive income — 16 (218 ) 48 Total commodity derivatives $ — $ 26 (73 ) $ 77 We did not incur any hedge ineffectiveness during the three and six-month periods ended June 30, 2018 and 2017. |
Fair Value Measurement
Fair Value Measurement | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | Note 8 – Fair Value Measurement 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. Note 8 – Fair Value Measurement – Continued 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 7), pension liabilities, pension plan assets and a corporate owned life insurance policy, the Company had no material financial assets and liabilities that are carried at fair value at June 30, 2018 and December 31, 2017. 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 June 30, 2018 and December 31, 2017, the carrying values of the 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 6). Discount rates used to measure the fair value of the DEG Vietnam Loan and DEG China Loan are based on quoted swap rates. As of June 30, 2018, the carrying values of the DEG Vietnam Loan and DEG China Loan was $12,500 and $1,400, respectively, as compared to an estimated fair value of $12,200 and $1,400, respectively. As of December 31, 2017, the carrying value of the DEG Vietnam Loan and DEG China Loan was $13,750 and $1,919, respectively, as compared to an estimated fair value of $13,600 and $2,000, respectively. 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 June 30, 2018 and December 31, 2017, 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. |
Reclassifications Out of Accumu
Reclassifications Out of Accumulated Other Comprehensive Income (Loss) | 6 Months Ended |
Jun. 30, 2018 | |
Equity [Abstract] | |
Reclassifications Out of Accumulated Other Comprehensive Income (Loss) | Note 9 – Reclassifications Out of Accumulated Other Comprehensive Income (Loss) Reclassification adjustments and other activities impacting accumulated other comprehensive income (loss) during the three and six-month periods ended June 30, 2018 and June 30, 2017 are as follows: Defined Benefit Pension Plans Foreign Currency Translation Adjustments Foreign Currency Hedge Derivatives Total Balance at March 31, 2018 $ (2,406 ) $ (5,890 ) $ 745 $ (7,551 ) Other comprehensive income (loss) before reclassifications — (22,994 ) (1,392 ) (24,386 ) Income tax effect of other comprehensive income before reclassifications — (156 ) 374 218 Amounts reclassified from accumulated other comprehensive income into net income (loss) — — (169 ) a (169 ) Income taxes reclassified into net income (loss) — — 45 45 Net current period other comprehensive income (loss) — (23,150 ) (1,142 ) (24,292 ) Balance at June 30, 2018 $ (2,406 ) $ (29,040 ) $ (397 ) $ (31,843 ) (a) The amounts reclassified from accumulated other comprehensive income (loss) are included in cost of sales. Note 9 – Reclassifications Out of Accumulated Other Comprehensive Income (Loss) – Continued Defined Benefit Pension Plans Foreign Currency Translation Adjustments Commodity Hedge Derivatives Foreign Currency Hedge Derivatives Total Balance at March 31, 2017 $ (2,550 ) $ (60,250 ) $ 262 $ 1,145 $ (61,393 ) Other comprehensive income (loss) before reclassifications — 23,285 28 1,092 24,405 Income tax effect of other comprehensive income (loss) before reclassifications — (106 ) (10 ) (293 ) (409 ) Amounts reclassified from accumulated other comprehensive (income) loss into net income — — (12 ) a (277 ) a (289 ) Income taxes reclassified into net income — — 4 74 78 Net current period other comprehensive income — 23,179 10 596 23,785 Balance at June 30, 2017 $ (2,550 ) $ (37,071 ) $ 272 $ 1,741 $ (37,608 ) (a) Defined Benefit Pension Plans Foreign Currency Translation Adjustments Commodity Hedge Derivatives Foreign Currency Hedge Derivatives Total Balance at December 31, 2017 $ (2,366 ) $ (17,555 ) $ 277 $ (800 ) $ (20,444 ) Cumulative effect of accounting change due to adoption of ASU 2018-02 (40 ) — — — (40 ) Other comprehensive income (loss) before reclassifications — (11,253 ) — 462 (10,791 ) Income tax effect of other comprehensive income before reclassifications — (232 ) — (124 ) (356 ) Amounts reclassified from accumulated other comprehensive income into net income (loss) — — (218 ) a 89 a (129 ) Income taxes reclassified into net income (loss) — — (59 ) (24 ) (83 ) Net current period other comprehensive income (loss) (40 ) (11,485 ) (277 ) 403 (11,399 ) Balance at June 30, 2018 $ (2,406 ) $ (29,040 ) $ — $ (397 ) $ (31,843 ) (a) The amounts reclassified from accumulated other comprehensive income (loss) are included in cost of sales. Note 9 – Reclassifications Out of Accumulated Other Comprehensive Income (Loss) – Continued Defined Benefit Pension Plans Foreign Currency Translation Adjustments Commodity Hedge Derivatives Foreign Currency Hedge Derivatives Total Balance at December 31, 2016 $ (2,550 ) $ (65,762 ) $ 241 $ (1,020 ) $ (69,091 ) Other comprehensive income (loss) before reclassifications — 28,800 78 2,965 31,843 Income tax effect of other comprehensive income before reclassifications — (109 ) (28 ) (796 ) (933 ) Amounts reclassified from accumulated other comprehensive income into net income (loss) — — (30 ) a 810 a 780 Income taxes reclassified into net income (loss) — — 11 (218 ) (207 ) Net current period other comprehensive income (loss) — 28,691 31 2,761 31,483 Balance at June 30, 2017 $ (2,550 ) $ (37,071 ) $ 272 $ 1,741 $ (37,608 ) (a) The amounts reclassified from accumulated other comprehensive income (loss) are included in cost of sales. We expect all of the existing gains and losses related to foreign currency derivatives and commodity derivatives reported in accumulated other comprehensive income as of June 30, 2018 to be reclassified into earnings during the next twelve months. See Note 7 for additional information about derivative financial instruments and the effects from reclassification to net income. |
Unearned Revenue
Unearned Revenue | 6 Months Ended |
Jun. 30, 2018 | |
Revenue Recognition And Deferred Revenue [Abstract] | |
Unearned Revenue | Note 10 – Unearned Revenue Unearned revenue by segment was as follows: June 30, 2018 December 31, 2017 Automotive $ 2,681 $ — Industrial 3,087 4,889 Total $ 5,768 $ 4,889 Changes in unearned revenue were as follows: Six Months Ended June 30, 2018 Balance, beginning of period $ 4,889 Additions to unearned revenue 10,456 Reclassified to revenue (9,551 ) Currency Impacts (26 ) Balance, end of period $ 5,768 Revenue allocated to remaining performance obligations represent contracted revenue that has not yet been recognized, which includes unearned revenue and amounts that will be invoiced and recognized as revenue in future periods. |
Basis of Presentation and New17
Basis of Presentation and New Accounting Pronouncements (Policies) | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Accounting Principles | Accounting Principles Our unaudited consolidated condensed financial statements and accompanying notes 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, 2017 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. Certain reclassifications of prior year’s amounts have been made to conform with the current year’s presentation. Notably, results from asset disposals during the six-month period ended June 30, 2017 were reclassified from other income to cost of sales. Operating results for the six-month period ended June 30, 2018 are not necessarily indicative of the results that may be expected for the year ending December 31, 2018. 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, 2017. |
Consolidation | Consolidation The consolidated financial statements at June 30, 2018 and December 31, 2017 and for the six-month period ended June 30, 2018 and 2017, reflect the consolidated financial position and consolidated operating results of the Company. Investments in affiliates in which Gentherm would not have control, but would have the ability to exercise significant influence over operating and financial policies, would be accounted for under the equity method. Investment for which Gentherm is not able to exercise significant influence over the investee and which do not have readily determinable fair values are accounted for under the cost method. Intercompany accounts have been eliminated in consolidation. |
Use of Estimates | Use of Estimates The presentation of financial statements in conformity with generally accepted accounting principles in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses. Actual results could differ from those estimates and assumptions. |
Revenue Recognition | Note 2 – Basis of Presentation and New Accounting Pronouncements – Continued Revenue Recognition Revenue is recognized from agreements containing enforceable rights and obligations when promised goods are delivered or services are completed, the price is fixed or determinable, and payment has been received or is collectable. The amount of revenue recognized is net of the Company’s obligation for returns, rebates, discounts, taxes, if any, collected from customers, and consideration that is paid to a customer, unless such payment is in exchange for a distinct good or service. The amount of revenue recognized from a contract with a customer reflects the amount of consideration expected to be received in exchange for the transfer of good or services. Automotive Revenues The Company sells automotive seat comfort systems, specialized automotive cable systems and automotive thermal convenience products under long-term supply agreements (“LTAs”) and, for arrangements that are less than one year in length, purchase orders. LTAs are multiple-year business awards to provide custom designed parts for a particular automotive vehicle program in quantities and at intervals of the customer’s choosing. LTAs are often multiple-element agreements. The main element in LTAs are production parts; distinct promises from which the customer can benefit separately from other promises or elements in the contract. A second element in LTAs are production part purchase options that provide customers the ability to purchase additional parts at set prices in the future. Judgement is used to determine whether a production part purchase option represents a material right to the customer and should be accounted for as a separate performance obligation. LTAs that provide customers with a purchase option discount incrementally higher than the range discounts typically given to automotive customers contain a material right. The magnitude of change in the year-over-year option prices and the total number of units expected to be ordered are important factors in the calculation of the option’s fair value and the allocation of transaction price. The price for parts is set at the point in time the customer exercises its option to purchase additional parts from the Company. A firm order, stating the number of each production part to be delivered, is an independent contract with a discrete transaction price. Revenues are allocated to production parts based on the relative standalone selling prices observed on the LTAs. As a practical alternative to estimating the standalone selling price of an option that provides a customer with a material right, the Company allocates transaction price to options by reference to the production part volumes expected to be ordered and the consideration expected to be received. The Company satisfies its obligation to provide product parts to the customer upon shipment. When an option to purchase additional production parts in the future represents a material right, the customer effectively is paying Gentherm in advance for production parts each time it exercises the option by placing a firm order commitment. Revenue from options containing a material right are recognized on the basis of direct measurement of the value of production parts transferred to date relative to the total number of production parts expected to be delivered over the life of the vehicle program. Judgement is required to determine the pattern and timing with which an option containing a material right is satisfied and the production part is transferred to a customer. Industrial Revenues Our industrial business unit generates revenue from the sale of products and services by our wholly-owned subsidiaries Cincinnati Sub-Zero (“CSZ”) and GPT. Industrial business unit revenues and medical business unit revenues discussed below are reported within the Company’s industrial reportable segment (see Note 5). Industrial business unit customers commonly enter into multiple-element agreements for the purchase of products and services. Installation services, for example, are separate and distinct performance obligations that are often included in contracts to purchase customized environmental test chambers. Depending on the application, delivery of an environmental test chamber or remote power generation system to the customer’s place of business can range from two weeks to nine months from commencement of the contract. Installation services, while reliant on the specifications and timing from the customer, rarely remain incomplete more than two months after delivery. Note 2 – Basis of Presentation and New Accounting Pronouncements – Continued Revenues allocated to environmental test chambers or remote power systems are based on the stand alone selling price of products themselves. Judgement is used to determine the degree to which early pay discounts and other credits are utilized in the calculation of standalone selling price, and only included to the extent it is probable that a significant reversal of any incremental revenue will not occur. Revenues are recognized at the point in time the chamber or power system is shipped to the customer. For contracts that also include a promise for installation, the portion of total transaction price allocated to the installation is recognized as revenue at the point in time the installation is complete. Revenues from our medical business unit are generated from the sale of products and equipment. Our medical product and equipment focus on body and blood temperature management. The Company sells medical products and equipment primarily through distributor and group purchasing organization agreements. These agreements allow member participants to the distributor or group purchasing organization to make purchases at discounted prices negotiated by the distributor or group purchasing organization. A rebate is incurred at the point in time a member participant purchases product covered under these types of agreements. Rebates are accounted for as variable consideration, using an expected value, probability weighted approach, based on the level of sales to the distributor and the time lag between the initial sale and the rebate claim in determining the transaction price of a contract. Revenue is recognized at the point in time the medical products or equipment is transferred to the customer. Contract Balances We record a receivable when revenue is recognized at the time of invoicing and unearned revenue when revenue is recognized subsequent to invoicing. For contracts where control of the goods or service is transferred to the customer over time, or whose terms require the customer to make milestone payments throughout the fulfillment period, the timing of revenue recognition is likely to differ from the timing of invoicing to customers. The opening balance of our accounts receivable, net of allowance for doubtful accounts, was $185,058 as of January 1, 2018. We record an allowance for doubtful accounts once exposure to collection risk of an account receivable is specifically identified. We analyze the length of time an account receivable is outstanding, as well as a customer’s payment history and ability to pay to determine the need to record an allowance for doubtful accounts. Activity in the allowance for doubtful accounts was as follows: Six Months Ended June 30, 2018 Balance, beginning of period $ 973 Additions charged to costs 615 Recoveries recognized in costs (411 ) Currency impact $ (12 ) Balance, end of period $ 1,165 Most of Gentherm’s unearned revenue pertains to LTAs containing a material right. In the early periods of an LTA containing a material right, when payments collected from the customer are greater than the standalone selling price of the production parts, revenue associated with the material right is deferred. In future periods, when amounts collected from customers as payment is less than the standalone selling price of the production parts delivered, the deferred revenue is reversed into revenue. For LTAs containing a material right and, thus, the timing of revenue recognition is likely to differ from the timing of invoicing to customer, the aggregate amount of transaction price allocated to material rights that remain unsatisfied as of June 30, 2018 is $2,681. We expect to recognize into revenue, 33% of this balance in the next 12 months, and the remaining 52%, 11% and 4% in 2019, 2020 and 2021, respectively. Gentherm often requires milestone payments for contracts to provide environmental test chambers or remote power systems to customers. Milestone payments do not provide the Company with a right to payment for the work completed to date and do not represent the satisfaction of a performance obligation. Milestone payments are deferred and reported within unearned revenue until construction is complete and the unit has been delivered or is installed. If the environmental test chamber contract includes a separate promise to provide installation services, any installation-related payments received from the customer are deferred until the point in time the installation is complete. Note 2 – Basis of Presentation and New Accounting Pronouncements – Continued The total amount of unearned revenue associated with environmental chamber and remote power system contracts, including environmental chamber contracts that include a separate obligation to provide installation, as of June 30, 2018 is $3,087. This entire balance is expected to be recognized into revenue during the next 12 months. See Note 10 for information regarding the unearned revenue associated with these arrangements, including unearned revenue by segment and amounts recognized into revenue during the most recent six-month period ending June 30, 2018. Payment terms for contracts with customers generally range from 30 to 120 days from the date of shipment of goods or completion of service or, if applicable, the scheduled milestone payment due date, and do not include components designed to provide customers with financing. Assets Recognized from the Costs to Obtain a Contract with a Customer We recognize an asset for the incremental costs of obtaining a contract with a customer if the benefits of those costs are expected to be realized for a period greater than one year. Total capitalized costs to obtain a contract were immaterial during the periods presented and are included in prepaid expenses and other assets and other non-current assets. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements Revenue from Contracts with Customers In May 2014, the FASB issued Accounting Standard Update (“ASU”) 2014-09, “Revenue from Contracts with Customers.” ASU 2014-09 was developed to enable financial statement users a 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 good or services. Issuers are to use a five-step contract review model to ensure revenue is measured, recognized, and disclosed in accordance with this principle. The FASB issued several amendments to the update, including a one-year deferral of the original effective date, and new methods for identifying performance obligations that are intended to reduce the cost and complexity of compliance. We adopted ASU 2014-09 and related amendments effective January 1, 2018 using the cumulative catch-up transition method, which required us to disclose the cumulative effect of initially applying the update recognized at the date of initial application. We elected to apply the guidance in ASU 2014-09 to contracts that were not completed at January 1, 2018. The most significant impact from adoption of ASU 2014-09 occurred within our Automotive segment and relates to our accounting for production part purchase options that grant customers a material right to purchase additional parts under long-term supply agreements in the future. Due to the complexity of certain of our automotive supply contracts, the actual revenue recognition treatment for customer purchase options will depend on contract-specific terms and could vary from other contracts that are similar in nature. Revenue recognition related to goods and services reported in the Industrial segment remains substantially unchanged. The amount by which each financial statement line item was affected by application of ASU 2014-09 and related amendments during the three and six-month periods ended June 30, 2018 is as follows: Note 2 – Basis of Presentation and New Accounting Pronouncements – Continued Revenue Based on Previously Effective Guidance New Revenue Standard Adjustment Revenue Based on New Revenue Standard Three Months Ended June 30, 2018 Product revenues $ 263,058 $ 721 $ 263,779 Income tax expense 3,232 (149 ) 3,083 Net income 16,087 572 16,659 Basic earnings per share 0.44 0.02 0.46 Diluted earnings per share 0.44 0.02 0.45 Six Months Ended June 30, 2018 Product revenues $ 524,267 $ 1,401 $ 525,668 Income tax expense 6,409 (290 ) 6,119 Net income 28,514 1,111 29,625 Basic earnings per share 0.78 0.03 0.81 Diluted earnings per share 0.78 0.03 0.81 Revenue Based on Previously Effective Guidance New Revenue Standard Adjustment Revenue Based on New Revenue Standard Balance Sheet June 30, 2018 Accounts receivable, net of allowance for doubtful accounts $ 200,024 $ — $ 200,024 Accrued liabilities $ 70,100 $ 2,681 $ 72,781 Unearned Revenue $ 3,087 $ 2,681 $ 5,768 Deferred income taxes, net $ 76,578 $ 548 $ 77,126 Accumulated earnings $ 353,824 $ (2,133 ) $ 351,691 Adoption of ASU 2014-09 and related amendments had no impact to cash from or used in operating, investing or financing activities on our consolidated condensed statements of cash flows. Statement of Cash Flows In August 2016, the FASB issued ASU 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments.” ASU 2016-15 provides guidance on the classification of eight specific cash receipt and cash payment transactions in the statement of cash flows. The Company focused its evaluation on the following transactions to determine the effect ASU 2016-15 will have on the Company’s Consolidated Statements of Cash Flows: 1) Debt extinguishment payments and debt prepayments are to be shown as cash outflows for financing activities. Presently, Gentherm classifies debt extinguishment payments within operating activities. 2) Payments made to settle contingent consideration liabilities not made soon after the acquisition date of a business combination should be recognized as cash outflows for financing activities up to the amount of the liability recognized at the acquisition date. Payments, or the portion of a payment, to settle contingent consideration liabilities that exceed the amount of the liability recognized at the acquisition date will be recognized as cash outflows for operating activities. 3) Cash receipts from the settlement of insurance claims, excluding those related to corporate-owned life insurance policies shall be classified on the basis of the related insurance coverage. For example, proceeds received to cover claims issued under product recall liability insurance would be classified as cash inflows from operating activities. 4) Cash receipts from the settlement of corporate-owned life insurance policies shall be classified as cash inflows from investing activities. Note 2 – Basis of Presentation and New Accounting Pronouncements – Continued We have adopted ASU 2016-15 and related amendments effective January 1, 2018. None of the cash receipt and cash payment transactions addressed by the update, including those that were not the focus of management’s evaluation, occurred during any of the periods presented in this report. Adoption of this update and related amendments did not have a material impact on the cash flows of the Company. Income Taxes In October 2016, the FASB issued ASU 2016-16, “Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory.” ASU 2016-16 modifies the current prohibition to recognize deferred income taxes from differences between the tax basis of assets in the buyer’s tax jurisdiction and their cost resulting from an intra-entity transfer from one tax-paying component to another tax-paying component of the same consolidated group. Under current GAAP, deferred income taxes for intra-entity asset transfers are not recognized until the asset is sold to an outside party. ASU 2016-16 allows entities to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. ASU 2016-16 is effective for fiscal years and interim periods beginning after December 15, 2017. The amendments in ASU 2016-16 should be applied on a modified retrospective basis through a cumulative-effect adjustment directly to accumulated earnings as of the beginning of the period of adoption. We adopted ASU 2016-16 and related amendments effective January 1, 2018 on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of such adoption date. As a result of the amendments in ASU 2016-16, a favorable adjustment of $31,645 was recorded directly to retained earnings during the six-month period ending June 30, 2018. The new deferred tax assets will be recognized ratably over the useful life the applicable assets. Accumulated Other Comprehensive Income In February 2018, the FASB issued ASU 2018-02, “Income Statement – Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.” ASU 2018-02 provides a remedy to a narrow-scope financial reporting issue created by the Tax Act. The Tax Act required entities to adjust deferred tax assets and liabilities to reflect the impact from newly enacted lower corporate income tax rates, and recognize the effect in income from continuing operations. This requirement applied to all deferred tax assets and liabilities, even those which arose from transactions originally recognized in other comprehensive income. The amendments in ASU 2018-02 allow adjustments to deferred tax assets and liabilities due to newly enacted lower corporate income tax rates to be recognized in retained earnings, if those deferred tax balances arose from transactions originally recognized in other comprehensive income. Income tax effects are released from accumulated other comprehensive income and recorded against the deferred tax balance in the consolidated balance sheet when the underlying activity is realized. ASU 2018-02 is effective for annual and interim periods beginning after December 15, 2018. Early adoption of the amendments in this update is permitted, including adoption in any interim period for which financial statements have not yet been issued. The amendments in ASU 2018-02 must be applied in the period of adoption or retrospectively to each period in which the effect of the change in U.S. federal corporate income tax rate in the Tax Act is recognized. We elected to early adopt ASU 2018-02 and related amendments effective January 1, 2018. An adjustment of $40 was recognized against retained earnings for effect of the change in the federal corporate income tax rate on deferred tax amounts. There are no related adjustments to the Company’s valuation allowance and no other income tax effects from the Tax Act on balances that remain in accumulated other comprehensive income were reclassified. Tax Act In January 2018, the FASB released guidance on the accounting for tax on the global intangible low-taxed income (“GILTI”) provisions of the Tax Act. The GILTI provisions impose a tax on foreign income in excess of deemed return on tangible assets of foreign corporations. During the first quarter of 2018, the Company elected to treat any potential GILTI inclusions as a period cost. |
Recently Issued Accounting Pronouncements Not Yet Adopted | Note 2 – Basis of Presentation and New Accounting Pronouncements – Continued Recently Issued Accounting Pronouncements Not Yet Adopted Goodwill Impairment In January 2017, the FASB issued ASU 2017-04, “Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment.” ASU 2017-04 modified the concept of impairment of goodwill to be a condition that exists when the carrying value of a reporting unit that includes goodwill exceeds its fair value. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value, limited to the total amount of goodwill allocated to that reporting unit. Entities no longer will determine goodwill impairment by calculating the implied fair value of goodwill by assigning the fair value of a reporting unit to all of its assets and liabilities as if the reporting unit had been acquired in a business combination. ASU 2017-04 is effective for annual and any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption of the amendments in this update is permitted. The amendments in ASU 2017-04 must be applied on a prospective basis and in the initial period of adoption, entities must disclose the nature of and reason for the change in accounting principle. The Company expects adoption of ASU 2017-04 will reduce the complexity of evaluating goodwill for impairment. Leases In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842).” ASU 2016-02 requires lessees to recognize on their balance sheet a liability to make lease payments and a right-of-use asset representing its right to use the underlying asset for the lease term. Payments to be made in optional periods should be included in the measurement of lease assets and liabilities if the lessee is reasonably certain it will exercise an option to extend the lease or not exercise an option to terminate the lease. While ASU 2016-02 continues to differentiate between finance or capital leases and operating leases, the principal change from current lease accounting guidance is that lease assets and liabilities arising from operating leases will be recognized on the balance sheet. ASU 2016-02 is effective for fiscal years and interim periods beginning after December 15, 2018. Early adoption of the amendments in this update are permitted. Lessees are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach which includes a number of practical expedients, including the ability to use hindsight in evaluating lessee options to extend or terminate a lease. An entity that elects to apply the practical expedients will be required to recognize a right-of-use asset and lease liability for all operating leases at each reporting date based on the present value of the remaining minimum rental payment that were tracked and disclosed under previous GAAP. We are currently in the process of determining the impact the implementation of ASU 2016-02 will have on the Company’s financial statements. |
The Company and Subsequent Ev18
The Company and Subsequent Events (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Company And Subsequent Events [Abstract] | |
Summary of Reconciliation of Restructuring Liability | Restructuring Liability A reconciliation of the beginning and ending restructuring liability is as follows: One-Time Employee Termination Benefit Costs Contract Termination Costs Consulting Costs Asset Disposal Costs Total Six Months Ended June 30, 2018 Balance, beginning of period $ — $ — $ — $ — $ — Additions, charged to costs 2,828 446 1,499 2,307 7,080 Payments and impairments (1,951 ) (18 ) (867 ) (2,307 ) (5,143 ) Balance, end of period $ 877 $ 428 $ 632 $ — $ 1,937 |
Basis of Presentation and New19
Basis of Presentation and New Accounting Pronouncements (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Summary of Activity in Allowance for Doubtful Accounts | Activity in the allowance for doubtful accounts was as follows: Six Months Ended June 30, 2018 Balance, beginning of period $ 973 Additions charged to costs 615 Recoveries recognized in costs (411 ) Currency impact $ (12 ) Balance, end of period $ 1,165 |
Summary of Financial Statement Affected by Application of ASU 2014-09 and Related Amendments | The amount by which each financial statement line item was affected by application of ASU 2014-09 and related amendments during the three and six-month periods ended June 30, 2018 is as follows: Note 2 – Basis of Presentation and New Accounting Pronouncements – Continued Revenue Based on Previously Effective Guidance New Revenue Standard Adjustment Revenue Based on New Revenue Standard Three Months Ended June 30, 2018 Product revenues $ 263,058 $ 721 $ 263,779 Income tax expense 3,232 (149 ) 3,083 Net income 16,087 572 16,659 Basic earnings per share 0.44 0.02 0.46 Diluted earnings per share 0.44 0.02 0.45 Six Months Ended June 30, 2018 Product revenues $ 524,267 $ 1,401 $ 525,668 Income tax expense 6,409 (290 ) 6,119 Net income 28,514 1,111 29,625 Basic earnings per share 0.78 0.03 0.81 Diluted earnings per share 0.78 0.03 0.81 Revenue Based on Previously Effective Guidance New Revenue Standard Adjustment Revenue Based on New Revenue Standard Balance Sheet June 30, 2018 Accounts receivable, net of allowance for doubtful accounts $ 200,024 $ — $ 200,024 Accrued liabilities $ 70,100 $ 2,681 $ 72,781 Unearned Revenue $ 3,087 $ 2,681 $ 5,768 Deferred income taxes, net $ 76,578 $ 548 $ 77,126 Accumulated earnings $ 353,824 $ (2,133 ) $ 351,691 |
Etratech Acquisition (Tables)
Etratech Acquisition (Tables) - Etratech Inc. | 6 Months Ended |
Jun. 30, 2018 | |
Summary of Preliminary Allocation | The purchase price allocation as of November 1, 2017 was as follows: Accounts receivable $ 12,654 Inventory 7,014 Prepaid expenses and other assets 535 Property and equipment 6,205 Customer relationships 24,774 Technology 8,588 Goodwill 14,881 Assumed liabilities (9,642 ) Net assets acquired 65,009 Cash acquired 670 Purchase price $ 65,679 |
Supplemental Pro Forma Information | The unaudited pro forma combined historical results including the amounts of Etratech revenue and earnings that would have been included in the Company’s consolidated statements of income had the acquisition date been January 1, 2017 is as follows: Three Months Ended Six Months Ended 2017 2017 Product revenues $ 257,526 $ 519,476 Net income $ 9,072 $ 34,846 Basic earnings per share $ 0.25 $ 0.95 Diluted earnings per share $ 0.25 $ 0.95 |
Schedule of Intangible Assets, Net | Note 3 – Etratech Acquisition – Continued Intangible assets, net consisted of the following (balances are lower as of June 30, 2018 than as of November 1, 2017, the acquisition date, due to fluctuations in foreign currency exchange rates totaling $1,027): June 30, 2018 Gross Value Accumulated Net Value Useful Life Customer relationships $ 24,006 $ 1,378 $ 22,628 8 -12 yrs Technology 8,329 1,084 7,245 5 -6 yrs Total $ 32,335 $ 2,462 $ 29,873 |
Summary of Amortization Expense | Amortization expenses of $889 and $1,847 during the three and six months ended June 30, 2018, respectively, were recognized in our consolidated condensed statement of income as follows: Three Months Ended Six Months Ended Product revenues $ 498 $ 1,034 Cost of sales 391 813 |
Estimate of Total Intangible Asset Amortization | Amortization expense for the prospective five years is expected to be as follows: July 1, 2018 through December 31, 2018 $ 1,844 2019 $ 3,688 2020 $ 3,688 2021 $ 3,627 2022 $ 3,208 2023 $ 2,546 |
Summary of Property and Equipment | Property and equipment consist of the following: Asset category Useful life Amount Leasehold improvements 10 yrs $ 342 Machinery and equipment 4-11 yrs 5,248 Furniture and fittings 4 yrs 230 Motor vehicles 3 yrs 25 Computer hardware and software 1 yrs 360 $ 6,205 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
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 Six Months 2018 2017 2018 2017 Weighted average number of shares for calculation of basic EPS 36,523,742 36,776,545 36,560,193 36,698,618 Stock options under equity incentive plans 143,257 63,826 103,033 97,550 Weighted average number of shares for calculation of diluted EPS 36,666,999 36,840,371 36,663,226 36,796,168 |
Common Stock Issuable upon Exercise of Certain Stock Options | The following 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 Six Months 2018 2017 2018 2017 Stock options under equity incentive plans 1,530,000 1,857,284 1,742,500 1,857,284 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
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 six-month periods ended June 30, 2018 and 2017. 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 June 30, 2018, goodwill assigned to our Automotive and Industrial segments were $38,072 and $30,773, respectively. As of June 30, 2017, goodwill assigned to our Automotive and Industrial segments were $22,724 and $30,773, respectively. Three Months Ended June 30, Automotive Industrial Reconciling Consolidated 2018: Product revenues $ 240,823 $ 22,956 $ — $ 263,779 Depreciation and amortization 10,970 1,301 660 12,931 Restructuring expenses 2,529 3,686 — 6,215 Operating income (loss) 37,240 (7,881 ) (13,766 ) 15,593 2017: Product revenues $ 215,812 $ 27,566 $ — $ 243,378 Depreciation and amortization 9,048 1,288 663 10,999 Operating income (loss) 40,066 (2,719 ) (12,211 ) 25,136 Six Months Ended June 30, Automotive Industrial Reconciling Consolidated 2018: Product revenues $ 480,842 $ 44,826 $ — $ 525,668 Depreciation and amortization 21,779 2,652 1,392 25,823 Restructuring expenses 3,247 3,833 — 7,080 Operating income (loss) 78,404 (14,561 ) (27,601 ) 36,242 2017: Product revenues $ 437,645 $ 55,000 $ — $ 492,645 Depreciation and amortization 17,179 2,706 1,306 21,191 Operating income (loss) 90,743 (5,134 ) (25,633 ) 59,976 |
Product Revenues Information by Geographic Area | Total product revenues information by geographic area is as follows: Three Months Ended June 30, 2018 2017 United States $ 123,512 47 % $ 114,141 47 % China 24,927 9 % 19,962 8 % Germany 23,626 9 % 17,694 7 % South Korea 15,783 6 % 17,754 7 % Japan 13,275 5 % 13,093 5 % Canada 12,590 5 % 11,113 5 % Czech Republic 11,106 4 % 9,944 4 % United Kingdom 8,467 3 % 8,439 4 % Mexico 4,848 2 % 5,322 2 % Other 25,645 10 % 25,916 11 % Total Non-U.S. 140,267 53 % 129,237 53 % $ 263,779 100 % $ 243,378 100 % Note 5 – Segment Reporting – Continued Six Months Ended June 30, 2018 2017 United States $ 243,862 46 % $ 233,664 47 % China 49,131 9 % 40,427 8 % Germany 45,988 9 % 35,562 7 % South Korea 29,605 6 % 34,145 7 % Japan 26,848 5 % 27,376 6 % Canada 25,703 5 % 22,042 5 % Czech Republic 22,821 4 % 20,651 4 % United Kingdom 19,312 4 % 18,107 4 % Mexico 11,146 2 % 10,692 2 % Other 51,252 10 % 49,979 10 % Total Non-U.S. 281,806 54 % 258,981 53 % $ 525,668 100 % $ 492,645 100 % |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Summary of Company's Debt | The following table summarizes the Company’s debt at June 30, 2018 and at December 31, 2017. June 30, 2018 December 31, Interest Principal Principal Credit Agreement: Revolving Note (U.S. Dollar Denominations) 3.59 % $ 99,000 $ 129,000 DEG China Loan 4.25 % 1,400 1,919 DEG Vietnam Loan 5.21 % 12,500 13,750 Total debt 112,900 144,669 Current portion (3,433 ) (3,460 ) Long-term debt, less current maturities $ 109,467 $ 141,209 |
Principal Maturities of Debt | The scheduled principal maturities of our debt as of June 30, 2018 are as follows: Year Revolving (U.S. Dollar) DEG DEG Total Remainder of 2018 $ — $ 467 $ 1,250 $ 1,717 2019 — 933 2,500 3,433 2020 — — 2,500 2,500 2021 99,000 — 2,500 101,500 2022 — — 2,500 2,500 2023 — — 1,250 1,250 Total $ 99,000 $ 1,400 $ 12,500 $ 112,900 |
Derivative Financial Instrume24
Derivative Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
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 June 30, 2018 is as follows: Asset Derivatives Liability Derivatives Net Asset/ Hedge Designation Fair Value Hierarchy Balance Sheet Fair Balance Sheet Fair Foreign currency derivatives Cash flow hedge Level 2 Current assets $ — Current liabilities $ (454 ) $ (454 ) |
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 Ended June 30, 2018 Three Months Ended June 30, 2017 Six Months Ended June 30, 2018 Six Months Ended June 30, 2017 Foreign currency derivatives Cost of sales $ (524 ) $ 351 $ (605 ) $ (121 ) Selling, general and administrative 22 — 75 (216 ) Other comprehensive income (1,561 ) 815 551 3,775 Foreign currency (loss) gain 10 (20 ) 47 (77 ) Total foreign currency derivatives $ (2,053 ) $ 1,146 68 $ 3,361 Commodity derivatives Cost of sales $ — $ 10 145 $ 29 Other comprehensive income — 16 (218 ) 48 Total commodity derivatives $ — $ 26 (73 ) $ 77 |
Reclassifications Out of Accu25
Reclassifications Out of Accumulated Other Comprehensive Income (Loss) (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Equity [Abstract] | |
Schedule of Reclassification Adjustments and Other Activities Impacting Accumulated Other Comprehensive Income (Loss) | Reclassification adjustments and other activities impacting accumulated other comprehensive income (loss) during the three and six-month periods ended June 30, 2018 and June 30, 2017 are as follows: Defined Benefit Pension Plans Foreign Currency Translation Adjustments Foreign Currency Hedge Derivatives Total Balance at March 31, 2018 $ (2,406 ) $ (5,890 ) $ 745 $ (7,551 ) Other comprehensive income (loss) before reclassifications — (22,994 ) (1,392 ) (24,386 ) Income tax effect of other comprehensive income before reclassifications — (156 ) 374 218 Amounts reclassified from accumulated other comprehensive income into net income (loss) — — (169 ) a (169 ) Income taxes reclassified into net income (loss) — — 45 45 Net current period other comprehensive income (loss) — (23,150 ) (1,142 ) (24,292 ) Balance at June 30, 2018 $ (2,406 ) $ (29,040 ) $ (397 ) $ (31,843 ) (a) The amounts reclassified from accumulated other comprehensive income (loss) are included in cost of sales. Note 9 – Reclassifications Out of Accumulated Other Comprehensive Income (Loss) – Continued Defined Benefit Pension Plans Foreign Currency Translation Adjustments Commodity Hedge Derivatives Foreign Currency Hedge Derivatives Total Balance at March 31, 2017 $ (2,550 ) $ (60,250 ) $ 262 $ 1,145 $ (61,393 ) Other comprehensive income (loss) before reclassifications — 23,285 28 1,092 24,405 Income tax effect of other comprehensive income (loss) before reclassifications — (106 ) (10 ) (293 ) (409 ) Amounts reclassified from accumulated other comprehensive (income) loss into net income — — (12 ) a (277 ) a (289 ) Income taxes reclassified into net income — — 4 74 78 Net current period other comprehensive income — 23,179 10 596 23,785 Balance at June 30, 2017 $ (2,550 ) $ (37,071 ) $ 272 $ 1,741 $ (37,608 ) (a) Defined Benefit Pension Plans Foreign Currency Translation Adjustments Commodity Hedge Derivatives Foreign Currency Hedge Derivatives Total Balance at December 31, 2017 $ (2,366 ) $ (17,555 ) $ 277 $ (800 ) $ (20,444 ) Cumulative effect of accounting change due to adoption of ASU 2018-02 (40 ) — — — (40 ) Other comprehensive income (loss) before reclassifications — (11,253 ) — 462 (10,791 ) Income tax effect of other comprehensive income before reclassifications — (232 ) — (124 ) (356 ) Amounts reclassified from accumulated other comprehensive income into net income (loss) — — (218 ) a 89 a (129 ) Income taxes reclassified into net income (loss) — — (59 ) (24 ) (83 ) Net current period other comprehensive income (loss) (40 ) (11,485 ) (277 ) 403 (11,399 ) Balance at June 30, 2018 $ (2,406 ) $ (29,040 ) $ — $ (397 ) $ (31,843 ) (a) The amounts reclassified from accumulated other comprehensive income (loss) are included in cost of sales. Note 9 – Reclassifications Out of Accumulated Other Comprehensive Income (Loss) – Continued Defined Benefit Pension Plans Foreign Currency Translation Adjustments Commodity Hedge Derivatives Foreign Currency Hedge Derivatives Total Balance at December 31, 2016 $ (2,550 ) $ (65,762 ) $ 241 $ (1,020 ) $ (69,091 ) Other comprehensive income (loss) before reclassifications — 28,800 78 2,965 31,843 Income tax effect of other comprehensive income before reclassifications — (109 ) (28 ) (796 ) (933 ) Amounts reclassified from accumulated other comprehensive income into net income (loss) — — (30 ) a 810 a 780 Income taxes reclassified into net income (loss) — — 11 (218 ) (207 ) Net current period other comprehensive income (loss) — 28,691 31 2,761 31,483 Balance at June 30, 2017 $ (2,550 ) $ (37,071 ) $ 272 $ 1,741 $ (37,608 ) (a) The amounts reclassified from accumulated other comprehensive income (loss) are included in cost of sales. |
Unearned Revenue (Tables)
Unearned Revenue (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Revenue Recognition And Deferred Revenue [Abstract] | |
Schedule of Unearned Revenue by Segment | Unearned revenue by segment was as follows: June 30, 2018 December 31, 2017 Automotive $ 2,681 $ — Industrial 3,087 4,889 Total $ 5,768 $ 4,889 |
Schedule of Changes in Unearned Revenue | Changes in unearned revenue were as follows: Six Months Ended June 30, 2018 Balance, beginning of period $ 4,889 Additions to unearned revenue 10,456 Reclassified to revenue (9,551 ) Currency Impacts (26 ) Balance, end of period $ 5,768 |
The Company and Subsequent Ev27
The Company and Subsequent Events - Additional Information (Detail) | 3 Months Ended | 4 Months Ended | 6 Months Ended | 12 Months Ended | ||
Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Oct. 31, 2018USD ($) | Dec. 31, 2018USD ($) | Jun. 30, 2018USD ($)Facility | Dec. 31, 2017USD ($) | |
Company And Subsequent Events [Line Items] | ||||||
Restructuring expenses | $ 6,215,000 | $ 7,080,000 | ||||
Statutory Federal income tax rate | 21.00% | 35.00% | ||||
Tax cuts and jobs act of 2017, incomplete accounting, provisional income tax expense | $ 0 | $ 20,153,000 | ||||
Tax cuts and jobs act of 2017, incomplete accounting, change in tax rate, deferred tax balances, provisional income tax expense | 5,808,000 | |||||
Tax cuts and jobs act of 2017, incomplete accounting, provisional income tax expense related to onetime transition tax liability of foreign subsidiaries | 23,923,000 | |||||
Tax cuts and jobs act of 2017, incomplete accounting, benefit included in provision for income taxes to offset one-time transition tax related to previous deferred tax liability that existed for undistributed foreign earnings that were not permanently reinvested | $ 9,578,000 | |||||
Automotive Segments | ||||||
Company And Subsequent Events [Line Items] | ||||||
Restructuring expenses | 3,247,000 | |||||
Industrial Segments | ||||||
Company And Subsequent Events [Line Items] | ||||||
Restructuring expenses | 3,833,000 | |||||
One-Time Employee Termination Benefit Costs | ||||||
Company And Subsequent Events [Line Items] | ||||||
Restructuring expenses | 2,828,000 | |||||
Contract Termination Costs | ||||||
Company And Subsequent Events [Line Items] | ||||||
Restructuring expenses | 446,000 | |||||
Asset Disposal Costs | ||||||
Company And Subsequent Events [Line Items] | ||||||
Restructuring expenses | 2,307,000 | |||||
Fit-for-Growth | Consultant Costs | ||||||
Company And Subsequent Events [Line Items] | ||||||
Restructuring expenses | 1,499,000 | |||||
Fit-for-Growth | One-Time Employee Termination Benefit Costs | ||||||
Company And Subsequent Events [Line Items] | ||||||
Restructuring expenses | 1,737,000 | 1,737,000 | ||||
Fit-for-Growth | Contract Termination Costs | ||||||
Company And Subsequent Events [Line Items] | ||||||
Restructuring expenses | 11,000 | |||||
Fit-for-Growth | Scenario Forecast | Consultant Costs | ||||||
Company And Subsequent Events [Line Items] | ||||||
Restructuring expenses | $ 840,000 | |||||
Advanced Research and Development Rationalization and Site Consolidation | One-Time Employee Termination Benefit Costs | ||||||
Company And Subsequent Events [Line Items] | ||||||
Restructuring expenses | 881,000 | |||||
Advanced Research and Development Rationalization and Site Consolidation | Loss on the Sale of Battery Management Systems | ||||||
Company And Subsequent Events [Line Items] | ||||||
Restructuring expenses | 1,107,000 | 1,107,000 | ||||
Advanced Research and Development Rationalization and Site Consolidation | Termination of 1 Leased Facility | ||||||
Company And Subsequent Events [Line Items] | ||||||
Restructuring expenses | 435,000 | $ 435,000 | ||||
Number of leased facilities vacated | Facility | 1 | |||||
Number of leased facilities closure | Facility | 2 | |||||
Advanced Research and Development Rationalization and Site Consolidation | Asset Disposal Costs | ||||||
Company And Subsequent Events [Line Items] | ||||||
Restructuring expenses | $ 1,200,000 | $ 1,200,000 | ||||
Advanced Research and Development Rationalization and Site Consolidation | Scenario Forecast | One-Time Employee Termination Benefit Costs | ||||||
Company And Subsequent Events [Line Items] | ||||||
Restructuring expenses | $ 166,000 | |||||
Advanced Research and Development Rationalization and Site Consolidation | Scenario Forecast | Termination of 1 Leased Facility | ||||||
Company And Subsequent Events [Line Items] | ||||||
Restructuring expenses | $ 537,000 | |||||
GPT and CSZ-IC | One-Time Employee Termination Benefit Costs | ||||||
Company And Subsequent Events [Line Items] | ||||||
Restructuring expenses | $ 210,000 |
The Company and Subsequent Ev28
The Company and Subsequent Events - Summary of Reconciliation of Beginning and Ending Restructuring Liability (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2018 | Jun. 30, 2018 | |
Restructuring Cost And Reserve [Line Items] | ||
Balance, beginning of period | ||
Additions, charged to costs | $ 6,215 | $ 7,080 |
Payments and impairments | (5,143) | |
Balance, end of period | 1,937 | 1,937 |
One-Time Employee Termination Benefit Costs | ||
Restructuring Cost And Reserve [Line Items] | ||
Balance, beginning of period | ||
Additions, charged to costs | 2,828 | |
Payments and impairments | (1,951) | |
Balance, end of period | 877 | 877 |
Contract Termination Costs | ||
Restructuring Cost And Reserve [Line Items] | ||
Balance, beginning of period | ||
Additions, charged to costs | 446 | |
Payments and impairments | (18) | |
Balance, end of period | 428 | 428 |
Consulting Costs | ||
Restructuring Cost And Reserve [Line Items] | ||
Balance, beginning of period | ||
Additions, charged to costs | 1,499 | |
Payments and impairments | (867) | |
Balance, end of period | $ 632 | 632 |
Asset Disposal Costs | ||
Restructuring Cost And Reserve [Line Items] | ||
Additions, charged to costs | 2,307 | |
Payments and impairments | $ (2,307) |
Basis of Presentation and New29
Basis of Presentation and New Accounting Pronouncements (Detail) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Basis Of Presentation And Accounting Policies [Line Items] | ||
Accounts receivable, net of allowance for doubtful accounts | $ 200,024,000 | $ 185,058,000 |
Aggregate amount of transaction price allocated to material rights that remain unsatisfied | $ 2,681,000 | |
Revenue expected to be recognized in next 12 months | 33.00% | |
Revenue expected to be recognized in 2019 | 52.00% | |
Revenue expected to be recognized in 2020 | 11.00% | |
Revenue expected to be recognized in 2021 | 4.00% | |
Unearned revenue | $ 5,768,000 | 4,889,000 |
Income tax effects from Tax Act | 0 | 20,153,000 |
ASU 2018-02 | ||
Basis Of Presentation And Accounting Policies [Line Items] | ||
Adjustment against retained earnings for effect of change in federal corporate income tax rate | 40,000 | |
Adjustments related to valuation allowance | 0 | |
Income tax effects from Tax Act | 0 | |
ASU 2014-09 | ||
Basis Of Presentation And Accounting Policies [Line Items] | ||
Cash from or used in operating activities | 0 | |
Cash from or used in investing activities | 0 | |
Cash from or used in financing activities | 0 | |
ASU 2016-16 | ||
Basis Of Presentation And Accounting Policies [Line Items] | ||
Favourable adjustment to retained earnings | $ 31,645,000 | |
Minimum | ||
Basis Of Presentation And Accounting Policies [Line Items] | ||
Payment terms of contracts | 30 days | |
Maximum | ||
Basis Of Presentation And Accounting Policies [Line Items] | ||
Payment terms of contracts | 120 days | |
Industrial Segments | ||
Basis Of Presentation And Accounting Policies [Line Items] | ||
Unearned revenue | $ 3,087,000 | $ 4,889,000 |
Summary of Activity in Allowanc
Summary of Activity in Allowance for Doubtful Accounts (Detail) $ in Thousands | 6 Months Ended |
Jun. 30, 2018USD ($) | |
Accounting Policies [Abstract] | |
Balance, beginning of period | $ 973 |
Additions charged to costs | 615 |
Recoveries recognized in costs | (411) |
Currency impact | (12) |
Balance, end of period | $ 1,165 |
Summary of Financial Statement
Summary of Financial Statement Affected by Application of ASU 2014-09 and Related Amendments (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | |||||
Product revenues | $ 263,779 | $ 243,378 | $ 525,668 | $ 492,645 | |
Income tax expense | 3,083 | 2,371 | 6,119 | 9,603 | |
Net income | $ 16,659 | $ 8,513 | $ 29,625 | $ 33,915 | |
Basic earnings per share | $ 0.46 | $ 0.23 | $ 0.81 | $ 0.92 | |
Diluted earnings per share | $ 0.45 | $ 0.23 | $ 0.81 | $ 0.92 | |
Balance Sheet June 30, 2018 | |||||
Accounts receivable, net of allowance for doubtful accounts | $ 200,024 | $ 200,024 | $ 185,058 | ||
Accrued liabilities | 72,781 | 72,781 | 77,209 | ||
Unearned revenue | 5,768 | 5,768 | 4,889 | ||
Deferred income taxes, net | 77,126 | 77,126 | |||
Accumulated earnings | 351,691 | 351,691 | $ 293,645 | ||
Revenue Based on Previously Effective Guidance | |||||
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | |||||
Product revenues | 263,058 | 524,267 | |||
Income tax expense | 3,232 | 6,409 | |||
Net income | $ 16,087 | $ 28,514 | |||
Basic earnings per share | $ 0.44 | $ 0.78 | |||
Diluted earnings per share | $ 0.44 | $ 0.78 | |||
Balance Sheet June 30, 2018 | |||||
Accounts receivable, net of allowance for doubtful accounts | $ 200,024 | $ 200,024 | |||
Accrued liabilities | 70,100 | 70,100 | |||
Unearned revenue | 3,087 | 3,087 | |||
Deferred income taxes, net | 76,578 | 76,578 | |||
Accumulated earnings | 353,824 | 353,824 | |||
ASU 2014-09 | New Revenue Standard Adjustment | |||||
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | |||||
Product revenues | 721 | 1,401 | |||
Income tax expense | (149) | (290) | |||
Net income | $ 572 | $ 1,111 | |||
Basic earnings per share | $ 0.02 | $ 0.03 | |||
Diluted earnings per share | $ 0.02 | $ 0.03 | |||
Balance Sheet June 30, 2018 | |||||
Accrued liabilities | $ 2,681 | $ 2,681 | |||
Unearned revenue | 2,681 | 2,681 | |||
Deferred income taxes, net | 548 | 548 | |||
Accumulated earnings | $ (2,133) | $ (2,133) |
Etratech Acquisition - Addition
Etratech Acquisition - Additional Information (Detail) - USD ($) $ in Thousands | Nov. 01, 2017 | Jun. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2017 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 68,845 | $ 68,845 | $ 69,685 | |
Etratech Inc. | ||||
Business Acquisition [Line Items] | ||||
Product revenues | 15,201 | 30,389 | ||
Net income | 678 | 426 | ||
Net assets acquired | $ 65,009 | |||
Cash acquired on acquisition | 670 | |||
Gross contractual amount due of accounts receivable | 12,654 | |||
Goodwill | 14,881 | |||
Goodwill not deductible for income taxes | 8,651 | |||
Intangible assets before foreign currency adjustment | $ 33,362 | |||
Fluctuations in foreign currency exchange rates that reduced intangible assets value | 1,027 | |||
Amortization of intangibles | $ 889 | $ 1,847 |
Etratech Acquisition - Summary
Etratech Acquisition - Summary of Preliminary Allocation (Detail) - USD ($) $ in Thousands | Nov. 01, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 68,845 | $ 69,685 | ||
Purchase price | $ 15 | $ 2,000 | ||
Etratech Inc. | ||||
Business Acquisition [Line Items] | ||||
Accounts receivable | $ 12,654 | |||
Inventory | 7,014 | |||
Prepaid expenses and other assets | 535 | |||
Property and equipment | 6,205 | |||
Goodwill | 14,881 | |||
Assumed liabilities | (9,642) | |||
Net assets acquired | 65,009 | |||
Cash acquired | 670 | |||
Purchase price | 65,679 | |||
Etratech Inc. | Customer relationships | ||||
Business Acquisition [Line Items] | ||||
Intangible assets | 24,774 | |||
Etratech Inc. | Technology | ||||
Business Acquisition [Line Items] | ||||
Intangible assets | $ 8,588 |
Etratech Acquisition - Suppleme
Etratech Acquisition - Supplemental Pro Forma Information (Detail) - Etratech Inc. - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2017 | Jun. 30, 2017 | |
Business Acquisition [Line Items] | ||
Product revenues | $ 257,526 | $ 519,476 |
Net income | $ 9,072 | $ 34,846 |
Basic earnings per share | $ 0.25 | $ 0.95 |
Diluted earnings per share | $ 0.25 | $ 0.95 |
Etratech Acquisition - Schedule
Etratech Acquisition - Schedule of Intangible Assets (Detail) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Dec. 31, 2017 | |
Finite And Indefinite Lived Intangible Assets [Line Items] | ||
Net Value | $ 73,574 | $ 83,286 |
Etratech Inc. | ||
Finite And Indefinite Lived Intangible Assets [Line Items] | ||
Gross Value | 32,335 | |
Accumulated Amortization | 2,462 | |
Net Value | 29,873 | |
Etratech Inc. | Customer relationships | ||
Finite And Indefinite Lived Intangible Assets [Line Items] | ||
Gross Value | 24,006 | |
Accumulated Amortization | 1,378 | |
Net Value | $ 22,628 | |
Etratech Inc. | Customer relationships | Minimum | ||
Finite And Indefinite Lived Intangible Assets [Line Items] | ||
Useful Life | 8 years | |
Etratech Inc. | Customer relationships | Maximum | ||
Finite And Indefinite Lived Intangible Assets [Line Items] | ||
Useful Life | 12 years | |
Etratech Inc. | Technology | ||
Finite And Indefinite Lived Intangible Assets [Line Items] | ||
Gross Value | $ 8,329 | |
Accumulated Amortization | 1,084 | |
Net Value | $ 7,245 | |
Etratech Inc. | Technology | Minimum | ||
Finite And Indefinite Lived Intangible Assets [Line Items] | ||
Useful Life | 5 years | |
Etratech Inc. | Technology | Maximum | ||
Finite And Indefinite Lived Intangible Assets [Line Items] | ||
Useful Life | 6 years |
Etratech Acquisition - Summar36
Etratech Acquisition - Summary of Amortization Expense (Detail) - Etratech Inc. - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2018 | Jun. 30, 2018 | |
Business Acquisition [Line Items] | ||
Amortization of intangibles | $ 889 | $ 1,847 |
Product revenues | ||
Business Acquisition [Line Items] | ||
Amortization of intangibles | 498 | 1,034 |
Cost of sales | ||
Business Acquisition [Line Items] | ||
Amortization of intangibles | $ 391 | $ 813 |
Etratech Acquisition - Summar37
Etratech Acquisition - Summary of Amortization Expense for Prospective Years (Detail) - Etratech Inc. $ in Thousands | Jun. 30, 2018USD ($) |
Business Acquisition [Line Items] | |
July 1, 2018 through December 31, 2018 | $ 1,844 |
2,019 | 3,688 |
2,020 | 3,688 |
2,021 | 3,627 |
2,022 | 3,208 |
2,023 | $ 2,546 |
Etratech Acquisition - Summar38
Etratech Acquisition - Summary of Property and Equipment (Detail) - Etratech Inc. - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Nov. 01, 2017 | |
Property Plant And Equipment [Line Items] | ||
Property and equipment | $ 6,205 | |
Leasehold improvements | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, Useful life | 10 years | |
Property and equipment | $ 342 | |
Machinery and equipment | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment | $ 5,248 | |
Machinery and equipment | Minimum | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, Useful life | 4 years | |
Machinery and equipment | Maximum | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, Useful life | 11 years | |
Furniture and fittings | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, Useful life | 4 years | |
Property and equipment | $ 230 | |
Motor vehicles | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, Useful life | 3 years | |
Property and equipment | $ 25 | |
Computer hardware and software | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, Useful life | 1 year | |
Property and equipment | $ 360 |
Earnings Per Share (Detail)
Earnings Per Share (Detail) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Weighted average number of shares for calculation of basic EPS | 36,523,742 | 36,776,545 | 36,560,193 | 36,698,618 |
Stock options under equity incentive plans | 143,257 | 63,826 | 103,033 | 97,550 |
Weighted average number of shares for calculation of diluted EPS | 36,666,999 | 36,840,371 | 36,663,226 | 36,796,168 |
Stock options under 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 | 1,530,000 | 1,857,284 | 1,742,500 | 1,857,284 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Detail) - USD ($) $ in Thousands | 6 Months Ended | |||
Jun. 30, 2018 | Dec. 31, 2017 | Nov. 01, 2017 | Jun. 30, 2017 | |
Segment Reporting Information [Line Items] | ||||
Goodwill | $ 68,845 | $ 69,685 | ||
Automotive Segments | ||||
Segment Reporting Information [Line Items] | ||||
Goodwill | 38,072 | $ 22,724 | ||
Industrial Segments | ||||
Segment Reporting Information [Line Items] | ||||
Goodwill | $ 30,773 | $ 30,773 | ||
Etratech Inc. | ||||
Segment Reporting Information [Line Items] | ||||
Date of acquisition | Nov. 1, 2017 | |||
Goodwill | $ 14,881 |
Segment Information about Repor
Segment Information about Reported Product Revenues, Depreciation and Amortization and Operating Income (Loss) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Segment Reporting Information [Line Items] | ||||
Product revenues | $ 263,779 | $ 243,378 | $ 525,668 | $ 492,645 |
Depreciation and amortization | 12,931 | 10,999 | 25,823 | 21,191 |
Restructuring expenses | 6,215 | 7,080 | ||
Operating income (loss) | 15,593 | 25,136 | 36,242 | 59,976 |
Automotive Segments | ||||
Segment Reporting Information [Line Items] | ||||
Restructuring expenses | 3,247 | |||
Industrial Segments | ||||
Segment Reporting Information [Line Items] | ||||
Restructuring expenses | 3,833 | |||
Operating Segments | Automotive Segments | ||||
Segment Reporting Information [Line Items] | ||||
Product revenues | 240,823 | 215,812 | 480,842 | 437,645 |
Depreciation and amortization | 10,970 | 9,048 | 21,779 | 17,179 |
Restructuring expenses | 2,529 | 3,247 | ||
Operating income (loss) | 37,240 | 40,066 | 78,404 | 90,743 |
Operating Segments | Industrial Segments | ||||
Segment Reporting Information [Line Items] | ||||
Product revenues | 22,956 | 27,566 | 44,826 | 55,000 |
Depreciation and amortization | 1,301 | 1,288 | 2,652 | 2,706 |
Restructuring expenses | 3,686 | 3,833 | ||
Operating income (loss) | (7,881) | (2,719) | (14,561) | (5,134) |
Reconciling Items | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation and amortization | 660 | 663 | 1,392 | 1,306 |
Operating income (loss) | $ (13,766) | $ (12,211) | $ (27,601) | $ (25,633) |
Segment Reporting (Detail)
Segment Reporting (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Segment Reporting Information [Line Items] | ||||
Product revenues | $ 263,779 | $ 243,378 | $ 525,668 | $ 492,645 |
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 | $ 123,512 | $ 114,141 | $ 243,862 | $ 233,664 |
United States | Sales Revenue, Net | Geographic Concentration Risk | ||||
Segment Reporting Information [Line Items] | ||||
Total product revenues in percentage | 47.00% | 47.00% | 46.00% | 47.00% |
China | ||||
Segment Reporting Information [Line Items] | ||||
Product revenues | $ 24,927 | $ 19,962 | $ 49,131 | $ 40,427 |
China | Sales Revenue, Net | Geographic Concentration Risk | ||||
Segment Reporting Information [Line Items] | ||||
Total product revenues in percentage | 9.00% | 8.00% | 9.00% | 8.00% |
Germany | ||||
Segment Reporting Information [Line Items] | ||||
Product revenues | $ 23,626 | $ 17,694 | $ 45,988 | $ 35,562 |
Germany | Sales Revenue, Net | Geographic Concentration Risk | ||||
Segment Reporting Information [Line Items] | ||||
Total product revenues in percentage | 9.00% | 7.00% | 9.00% | 7.00% |
South Korea | ||||
Segment Reporting Information [Line Items] | ||||
Product revenues | $ 15,783 | $ 17,754 | $ 29,605 | $ 34,145 |
South Korea | Sales Revenue, Net | Geographic Concentration Risk | ||||
Segment Reporting Information [Line Items] | ||||
Total product revenues in percentage | 6.00% | 7.00% | 6.00% | 7.00% |
Japan | ||||
Segment Reporting Information [Line Items] | ||||
Product revenues | $ 13,275 | $ 13,093 | $ 26,848 | $ 27,376 |
Japan | Sales Revenue, Net | Geographic Concentration Risk | ||||
Segment Reporting Information [Line Items] | ||||
Total product revenues in percentage | 5.00% | 5.00% | 5.00% | 6.00% |
Canada | ||||
Segment Reporting Information [Line Items] | ||||
Product revenues | $ 12,590 | $ 11,113 | $ 25,703 | $ 22,042 |
Canada | Sales Revenue, Net | Geographic Concentration Risk | ||||
Segment Reporting Information [Line Items] | ||||
Total product revenues in percentage | 5.00% | 5.00% | 5.00% | 5.00% |
Czech Republic | ||||
Segment Reporting Information [Line Items] | ||||
Product revenues | $ 11,106 | $ 9,944 | $ 22,821 | $ 20,651 |
Czech Republic | Sales Revenue, Net | Geographic Concentration Risk | ||||
Segment Reporting Information [Line Items] | ||||
Total product revenues in percentage | 4.00% | 4.00% | 4.00% | 4.00% |
United Kingdom | ||||
Segment Reporting Information [Line Items] | ||||
Product revenues | $ 8,467 | $ 8,439 | $ 19,312 | $ 18,107 |
United Kingdom | Sales Revenue, Net | Geographic Concentration Risk | ||||
Segment Reporting Information [Line Items] | ||||
Total product revenues in percentage | 3.00% | 4.00% | 4.00% | 4.00% |
Mexico | ||||
Segment Reporting Information [Line Items] | ||||
Product revenues | $ 4,848 | $ 5,322 | $ 11,146 | $ 10,692 |
Mexico | Sales Revenue, Net | Geographic Concentration Risk | ||||
Segment Reporting Information [Line Items] | ||||
Total product revenues in percentage | 2.00% | 2.00% | 2.00% | 2.00% |
Other | ||||
Segment Reporting Information [Line Items] | ||||
Product revenues | $ 25,645 | $ 25,916 | $ 51,252 | $ 49,979 |
Other | Sales Revenue, Net | Geographic Concentration Risk | ||||
Segment Reporting Information [Line Items] | ||||
Total product revenues in percentage | 10.00% | 11.00% | 10.00% | 10.00% |
Non U.S. | ||||
Segment Reporting Information [Line Items] | ||||
Product revenues | $ 140,267 | $ 129,237 | $ 281,806 | $ 258,981 |
Non U.S. | Sales Revenue, Net | Geographic Concentration Risk | ||||
Segment Reporting Information [Line Items] | ||||
Total product revenues in percentage | 53.00% | 53.00% | 54.00% | 53.00% |
Debt - Additional Information (
Debt - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2018USD ($) | |
Debt Instrument [Line Items] | |
Maximum percentage of stock of non US subsidiaries pledge to secure obligation | 66.00% |
Federal Funds Rate | Minimum | |
Debt Instrument [Line Items] | |
Interest rate | 0.50% |
Federal Funds Rate | Maximum | |
Debt Instrument [Line Items] | |
Interest rate | 1.91% |
London Interbank Offered Rate | |
Debt Instrument [Line Items] | |
Interest rate | 2.09% |
Revolving Note (U.S. Dollar) | |
Debt Instrument [Line Items] | |
Undrawn borrowing capacity | $ 250,934,000 |
Debt maturity date | Mar. 17, 2021 |
United State Bank Of America Credit Facility | |
Debt Instrument [Line Items] | |
Interest rate | 5.00% |
Euro Currency Rate Loans | Minimum | |
Debt Instrument [Line Items] | |
Interest rate | 0.00% |
Euro Currency Rate Loans | Minimum | Amended Credit Agreement | |
Debt Instrument [Line Items] | |
Interest rate | 1.25% |
Euro Currency Rate Loans | Maximum | |
Debt Instrument [Line Items] | |
Interest rate | 1.00% |
Euro Currency Rate Loans | Maximum | Amended Credit Agreement | |
Debt Instrument [Line Items] | |
Interest rate | 2.00% |
Base Rate Loans | Minimum | Amended Credit Agreement | |
Debt Instrument [Line Items] | |
Interest rate | 0.25% |
Base Rate Loans | Maximum | Amended Credit Agreement | |
Debt Instrument [Line Items] | |
Interest rate | 1.00% |
DEG Loan | |
Debt Instrument [Line Items] | |
Semi-annual principal payments earliest date | 2015-03 |
Semi-annual principal payments latest date | 2019-09 |
DEG Vietnam Loan | |
Debt Instrument [Line Items] | |
Semi-annual principal payments earliest date | 2017-11 |
Semi-annual principal payments latest date | 2023-05 |
Revolving Credit Facility | Revolving Note (U.S. Dollar) | |
Debt Instrument [Line Items] | |
Maximum borrowing capacity | $ 350,000,000 |
Summary of Company's Debt (Deta
Summary of Company's Debt (Detail) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Total debt | $ 112,900 | $ 144,669 |
Current portion | (3,433) | (3,460) |
Long-term debt, less current maturities | $ 109,467 | 141,209 |
Revolving Note (U.S. Dollar Denominations) | ||
Debt Instrument [Line Items] | ||
Interest Rate | 3.59% | |
Total debt | $ 99,000 | 129,000 |
DEG China Loan | ||
Debt Instrument [Line Items] | ||
Interest Rate | 4.25% | |
Total debt | $ 1,400 | 1,919 |
DEG Vietnam Loan | ||
Debt Instrument [Line Items] | ||
Interest Rate | 5.21% | |
Total debt | $ 12,500 | $ 13,750 |
Principal Maturities of Debt (D
Principal Maturities of Debt (Detail) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Debt maturing in remainder of 2018 | $ 1,717 | |
Debt maturing in 2019 | 3,433 | |
Debt maturing in 2020 | 2,500 | |
Debt maturing in 2021 | 101,500 | |
Debt maturing in 2022 | 2,500 | |
Debt maturing in 2023 | 1,250 | |
Total debt | 112,900 | $ 144,669 |
Revolving Note (U.S. Dollar) | ||
Debt Instrument [Line Items] | ||
Debt maturing in 2021 | 99,000 | |
Total debt | 99,000 | 129,000 |
DEG China Loan | ||
Debt Instrument [Line Items] | ||
Debt maturing in remainder of 2018 | 467 | |
Debt maturing in 2019 | 933 | |
Total debt | 1,400 | 1,919 |
DEG Vietnam Loan | ||
Debt Instrument [Line Items] | ||
Debt maturing in remainder of 2018 | 1,250 | |
Debt maturing in 2019 | 2,500 | |
Debt maturing in 2020 | 2,500 | |
Debt maturing in 2021 | 2,500 | |
Debt maturing in 2022 | 2,500 | |
Debt maturing in 2023 | 1,250 | |
Total debt | $ 12,500 | $ 13,750 |
Derivative Financial Instrume46
Derivative Financial Instruments - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Derivative [Line Items] | |||||
Maximum length of time to hedge exposure to foreign currency exchange risk | 1 year | ||||
Maximum length of time to hedge exposure to price fluctuations in material commodities | 2 years | ||||
Foreign Currency Derivatives | |||||
Derivative [Line Items] | |||||
Notional Value | $ 22,397,000 | $ 22,397,000 | $ 29,273,000 | ||
Commodity Derivatives | |||||
Derivative [Line Items] | |||||
Notional Value | 0 | 0 | $ 404,000 | ||
Interest Rate Swap | |||||
Derivative [Line Items] | |||||
Hedge Ineffectiveness Incurred | $ 0 | $ 0 | $ 0 | $ 0 |
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 - Foreign Currency Derivatives - Designated as Hedging Instrument $ in Thousands | Jun. 30, 2018USD ($) |
Derivatives Fair Value [Line Items] | |
Liability Derivatives, Fair Value | $ (454) |
Net Asset/ (Liabilities) | $ (454) |
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 | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Derivative Instruments Gain Loss [Line Items] | ||||
Gain (loss) on derivatives | $ (2,053) | $ 1,146 | $ 68 | $ 3,361 |
Commodity Derivatives | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Gain (loss) on derivatives | 26 | (73) | 77 | |
Other comprehensive income | Foreign Currency Derivatives | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Gain (loss) on derivatives | (1,561) | 815 | 551 | 3,775 |
Other comprehensive income | Commodity Derivatives | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Gain (loss) on derivatives | 16 | (218) | 48 | |
Cost of sales | Foreign Currency Derivatives | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Gain (loss) on derivatives | (524) | 351 | (605) | (121) |
Cost of sales | Commodity Derivatives | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Gain (loss) on derivatives | 10 | 145 | 29 | |
Selling, general and administrative expense | Foreign Currency Derivatives | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Gain (loss) on derivatives | 22 | 75 | (216) | |
Foreign currency (loss) gain | Foreign Currency Derivatives | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Gain (loss) on derivatives | $ 10 | $ (20) | $ 47 | $ (77) |
Fair Value Measurement - Additi
Fair Value Measurement - Additional Information (Detail) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Financial assets, fair value | $ 0 | $ 0 |
Financial liabilities, fair value | 0 | 0 |
Carrying value | 112,900,000 | 144,669,000 |
Changes to fair value of assets, realized | 0 | 0 |
DEG Vietnam Loan | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Carrying value | 12,500,000 | 13,750,000 |
Fair value | 12,200,000 | 13,600,000 |
DEG China Loan | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Carrying value | 1,400,000 | 1,919,000 |
Fair value | $ 1,400,000 | $ 2,000,000 |
Schedule of Reclassification Ad
Schedule of Reclassification Adjustments and Other Activities Impacting Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | ||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||
Beginning Balance | $ (7,551) | $ (61,393) | $ (20,444) | $ (69,091) | |
Cumulative effect of accounting change due to adoption of ASU 2018-02 | (40) | ||||
Other comprehensive income (loss) before reclassifications | (24,386) | 24,405 | (10,791) | 31,843 | |
Income tax effect of other comprehensive income (loss) before reclassifications | 218 | (409) | (356) | (933) | |
Amounts reclassified from accumulated other comprehensive (income) loss into net income (loss) | (169) | (289) | (129) | 780 | |
Income taxes reclassified into net income (loss) | 45 | 78 | (83) | (207) | |
Other comprehensive (loss) income, net of tax | (24,292) | 23,785 | (11,399) | 31,483 | |
Ending Balance | (31,843) | (37,608) | (31,843) | (37,608) | |
Defined Benefit Pension Plans | |||||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||
Beginning Balance | (2,406) | (2,550) | (2,366) | (2,550) | |
Cumulative effect of accounting change due to adoption of ASU 2018-02 | (40) | ||||
Other comprehensive (loss) income, net of tax | (40) | ||||
Ending Balance | (2,406) | (2,550) | (2,406) | (2,550) | |
Foreign Currency Translation Adjustments | |||||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||
Beginning Balance | (5,890) | (60,250) | (17,555) | (65,762) | |
Other comprehensive income (loss) before reclassifications | (22,994) | 23,285 | (11,253) | 28,800 | |
Income tax effect of other comprehensive income (loss) before reclassifications | (156) | (106) | (232) | (109) | |
Other comprehensive (loss) income, net of tax | (23,150) | 23,179 | (11,485) | 28,691 | |
Ending Balance | (29,040) | (37,071) | (29,040) | (37,071) | |
Commodity Hedge Derivatives | |||||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||
Beginning Balance | 262 | 277 | 241 | ||
Other comprehensive income (loss) before reclassifications | 28 | 78 | |||
Income tax effect of other comprehensive income (loss) before reclassifications | (10) | (28) | |||
Amounts reclassified from accumulated other comprehensive (income) loss into net income (loss) | [1] | (12) | (218) | (30) | |
Income taxes reclassified into net income (loss) | 4 | (59) | 11 | ||
Other comprehensive (loss) income, net of tax | 10 | (277) | 31 | ||
Ending Balance | 272 | 272 | |||
Foreign Currency Hedge Derivatives | |||||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||
Beginning Balance | 745 | 1,145 | (800) | (1,020) | |
Other comprehensive income (loss) before reclassifications | (1,392) | 1,092 | 462 | 2,965 | |
Income tax effect of other comprehensive income (loss) before reclassifications | 374 | (293) | (124) | (796) | |
Amounts reclassified from accumulated other comprehensive (income) loss into net income (loss) | [1] | (169) | (277) | 810 | |
Income taxes reclassified into net income (loss) | 45 | 74 | (24) | (218) | |
Other comprehensive (loss) income, net of tax | (1,142) | 596 | 403 | 2,761 | |
Ending Balance | $ (397) | $ 1,741 | $ (397) | $ 1,741 | |
[1] | The amounts reclassified from accumulated other comprehensive income (loss) are included in cost of sales. |
Unearned Revenue By Segment (De
Unearned Revenue By Segment (Detail) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Deferred Revenue Arrangement [Line Items] | ||
Unearned revenue | $ 5,768 | $ 4,889 |
Automotive Segments | ||
Deferred Revenue Arrangement [Line Items] | ||
Unearned revenue | 2,681 | |
Industrial Segments | ||
Deferred Revenue Arrangement [Line Items] | ||
Unearned revenue | $ 3,087 | $ 4,889 |
Changes in Unearned Revenue (De
Changes in Unearned Revenue (Detail) $ in Thousands | 6 Months Ended |
Jun. 30, 2018USD ($) | |
Revenue Recognition And Deferred Revenue [Abstract] | |
Beginning balance | $ 4,889 |
Additions to unearned revenue | 10,456 |
Reclassified to revenue | (9,551) |
Currency Impacts | (26) |
Ending balance | $ 5,768 |