Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2015 | Aug. 04, 2015 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | NNBR | |
Entity Registrant Name | NN INC | |
Entity Central Index Key | 918,541 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 26,838,339 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income and Comprehensive Income (Loss) (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Income Statement [Abstract] | ||||
Net sales | $ 164,856 | $ 106,680 | $ 328,601 | $ 209,208 |
Cost of products sold (exclusive of depreciation and amortization shown separately below) | 128,708 | 84,285 | 258,025 | 164,569 |
Selling, general and administrative | 13,962 | 10,074 | 25,961 | 20,104 |
Depreciation and amortization | 8,597 | 4,084 | 17,091 | 7,961 |
Income from operations | 13,589 | 8,237 | 27,524 | 16,574 |
Interest expense | 6,021 | 551 | 11,959 | 1,115 |
Other expense, net | 19 | 129 | 1,419 | 212 |
Income before provision for income taxes and share of net income from joint venture | 7,549 | 7,557 | 14,146 | 15,247 |
Provision for income taxes | 1,617 | 2,357 | 3,073 | 4,809 |
Share of net income from joint venture | 1,021 | 1,882 | ||
Net income | 6,953 | 5,200 | 12,955 | 10,438 |
Other comprehensive income (loss): | ||||
Foreign currency translation gain (loss) | 4,065 | (725) | (12,231) | (1,364) |
Change in fair value of interest rate hedge | (61) | (1,625) | ||
Comprehensive income (loss) | $ 10,957 | $ 4,475 | $ (901) | $ 9,074 |
Basic income per common share: | $ 0.36 | $ 0.29 | $ 0.68 | $ 0.59 |
Weighted average shares outstanding | 19,215 | 17,779 | 19,064 | 17,700 |
Diluted income per common share: | $ 0.36 | $ 0.29 | $ 0.67 | $ 0.58 |
Weighted average shares outstanding | 19,582 | 18,172 | 19,416 | 18,054 |
Cash dividends per common share | $ 0.07 | $ 0.07 | $ 0.14 | $ 0.14 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash | $ 21,409 | $ 37,317 |
Accounts receivable, net | 114,819 | 97,510 |
Inventories | 87,928 | 91,469 |
Other current assets | 16,590 | 16,503 |
Total current assets | 240,746 | 242,799 |
Property, plant and equipment, net | 272,047 | 278,442 |
Goodwill, net | 85,436 | 83,941 |
Intangible asset, net | 52,929 | 52,827 |
Investment in joint venture | 38,240 | 34,703 |
Other non-current assets | 19,542 | 20,001 |
Total assets | 708,940 | 712,713 |
Current liabilities: | ||
Accounts payable | 63,616 | 71,094 |
Accrued salaries, wages and benefits | 19,760 | 21,148 |
Current maturities of long-term debt | 23,345 | 22,160 |
Income taxes payable | 5,057 | 3,274 |
Current portion of obligations under capital lease | 5,482 | 5,418 |
Other current liabilities | 11,481 | 14,504 |
Total current liabilities | 128,741 | 137,598 |
Non-current deferred tax liabilities | 48,238 | 49,461 |
Long-term debt, net of current portion | 335,938 | 328,026 |
Obligations under capital lease, net of current portion | 11,829 | 14,539 |
Other non-current liabilities | 10,692 | 9,390 |
Total liabilities | 535,438 | 539,014 |
Total stockholders' equity | 173,502 | 173,699 |
Total liabilities and stockholders' equity | $ 708,940 | $ 712,713 |
Condensed Consolidated Stateme4
Condensed Consolidated Statement of Changes in Stockholders' Equity (Unaudited) - 6 months ended Jun. 30, 2015 - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock [Member] | Additional Paid in Capital [Member] | Retained Earnings [Member] | Non-controlling Interest [Member] | Accumulated Other Comprehensive Income [Member] |
Beginning Balance at Dec. 31, 2014 | $ 173,699 | $ 190 | $ 99,095 | $ 69,015 | $ 32 | $ 5,367 |
Beginning Balance, Shares at Dec. 31, 2014 | 18,983 | |||||
Net income | 12,955 | 12,955 | ||||
Dividends declared | (2,676) | (2,676) | ||||
Shares issued for option exercises | $ 1,831 | $ 1 | 1,830 | |||
Shares issued for option exercises, Shares | 160 | 160 | ||||
Stock option expense | $ 510 | 510 | ||||
Restricted stock expense | 1,079 | $ 1 | 1,078 | |||
Restricted stock expense, Shares | 115 | |||||
Performance Stock Unit expense | 182 | 182 | ||||
Restricted shares withheld from employees for tax obligations | (222) | (222) | ||||
Restricted shares withheld from employees for tax obligations, Shares | (9) | |||||
Foreign currency translation loss | (12,231) | (12,231) | ||||
Change in fair value of interest rate hedge | (1,625) | (1,625) | ||||
Ending Balance at Jun. 30, 2015 | $ 173,502 | $ 192 | $ 102,473 | $ 79,294 | $ 32 | $ (8,489) |
Ending Balance, Shares at Jun. 30, 2015 | 19,249 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Operating Activities: | ||
Net income | $ 12,955 | $ 10,438 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 17,091 | 7,961 |
Amortization of debt issuance costs | 1,146 | 216 |
Joint venture net income in excess of cash received | (1,882) | |
Share-based compensation expense | 1,771 | 1,286 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (17,393) | (20,594) |
Inventories | 1,305 | (4,736) |
Accounts payable | (6,317) | 6,939 |
Other assets and liabilities | (4,399) | 4,191 |
Net cash provided by operating activities | 4,277 | 5,701 |
Investing Activities: | ||
Acquisition of property, plant and equipment | (16,166) | (5,812) |
Cash paid to acquire business, net of cash received | (8,966) | (16,217) |
Proceeds from disposals of property, plant and equipment | 433 | |
Investment in joint venture | (1,372) | |
Net cash used by investing activities | (26,071) | (22,029) |
Financing Activities: | ||
Proceeds/(Repayment) from short-term debt, net | 1,453 | (763) |
Debt issue costs paid | (136) | |
Principal payments on capital lease | (2,618) | (73) |
Proceeds from long-term debt, net | 8,517 | 21,786 |
Dividends paid | (2,676) | (2,480) |
Proceeds from issuance of stock and exercise of stock options | 1,831 | 640 |
Net cash provided by financing activities | 6,371 | 19,110 |
Effect of exchange rate changes on cash flows | (485) | (9) |
Net Change in Cash | (15,908) | 2,773 |
Cash at Beginning of Period | 37,317 | 3,039 |
Cash at End of Period | $ 21,409 | $ 5,812 |
Interim Financial Statements
Interim Financial Statements | 6 Months Ended |
Jun. 30, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Interim Financial Statements | Note 1. Interim Financial Statements The accompanying condensed consolidated financial statements of NN, Inc. have not been audited, except that the condensed consolidated balance sheet at December 31, 2014 was derived from our audited consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2014, which was filed with the U.S. Securities and Exchange Commission, or SEC, on March 16, 2015. In our opinion, these financial statements reflect all adjustments necessary to fairly state the results of operations for the three and six month periods ended June 30, 2015 and 2014, our financial position at June 30, 2015 and December 31, 2014, and the cash flows for the six month periods ended June 30, 2015 and 2014 on a basis consistent with our audited financial statements. These adjustments are of a normal recurring nature and are, in the opinion of management, necessary for fair statement of the financial position and operating results for the interim periods. As used in this Quarterly Report on Form 10-Q, the terms “NN”, “the Company”, “we”, “our”, or “us” mean NN, Inc. and its subsidiaries. Certain information and footnote disclosures normally included in the consolidated financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted from the interim financial statements presented in this Quarterly Report on Form 10-Q. These unaudited, condensed and consolidated financial statements should be read in conjunction with our audited consolidated financial statements and the notes thereto included in our most recent Annual Report on Form 10-K for the year ended December 31, 2014, which we filed with the SEC on March 16, 2015. The results for the three and six month periods ended June 30, 2015 are not necessarily indicative of results for the year ending December 31, 2015 or any other future periods. |
Acquisitions
Acquisitions | 6 Months Ended |
Jun. 30, 2015 | |
Business Combinations [Abstract] | |
Acquisitions | Note 2. Acquisitions On May 29, 2015, NN completed the acquisition of Caprock Manufacturing, Inc. and Caprock Enclosures, LLC (collectively referred to as “Caprock”) for approximately $9,000 in cash. Caprock was a privately held plastic components supplier located in Lubbock, TX. Caprock serves multiple end markets including aerospace, medical and general industrial. The acquisition provides further balancing of our end markets and represents the first step in our focused plan toward transforming our plastics business. The results of Caprock have been consolidated with NN since the date of acquisition as part of the Plastic and Rubber Components Segment. We are in the process of finalizing fair market valuations of all the net assets acquired given the purchase was made close to the end of the quarter. The preliminary purchase price allocation includes $1,452 in net working capital, $2,960 in property plant and equipment, $2,490 in intangible assets, and $2,099 in goodwill, which we expect to be fully deductible for tax purposes. The goodwill is attributable to expected cost synergies and revenue growth plus the assembled work force. On June 20, 2014, we acquired 79.2% of the outstanding shares of RFK Valjcici d. d. Konjic (“RFK”) for $9,756 in cash. RFK is a manufacturer of tapered rollers with operations in Konjic, Bosnia & Herzegovina. As of June 30, 2014, we reported a non-controlling interest of $2,559 for RFK representing the fair value of the 20.8% of the shares outstanding we did not own. NN purchased up to 99.7% of the shares of RFK in the second half of 2014 for $2,528 in cash and reclassified this amount from a non-controlling interest. RFK’s products, while complementary to NN’s existing roller bearing components, broadened our product offering and allowed penetration into adjacent markets. The results of the operations of RFK have been consolidated with NN since the date of acquisition as a part of the Metal Bearing Components Segment. On January 30, 2014, we purchased the majority of the operating assets of V-S Industries, V-S Precision, LLC and V-S Precision SA de DV (collectively referred to as “VS”) from the secured creditors of V-S Industries for $5,580 in cash and assumed certain liabilities totaling $2,968. This was accounted for as a business combination. VS is a precision metal components manufacturer that supplies customers in a variety of industries including electric motors, HVAC, power tools, automotive and medical. The acquisition of VS provided us with a complementary, broader product offering and allowed penetration into adjacent markets. VS has two locations in Wheeling, Illinois and Juarez, Mexico and is included in Autocam Precision Components Segment. |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2015 | |
Inventory Disclosure [Abstract] | |
Inventories | Note 3. Inventories Inventories are comprised of the following: June 30, December 31, Raw materials 37,104 $ 35,191 Work in process 20,470 21,883 Finished goods 30,354 34,395 87,928 $ 91,469 Inventories on consignment at customer locations as of June 30, 2015 and December 31, 2014 totaled $4,981 and $5,857, respectively. Inventories are stated at the lower of cost or market. Cost is determined using the average cost method. The inventory valuations above were developed using normalized production capacities for each of our manufacturing locations. Any costs from abnormal excess capacity or under-utilization of fixed production overheads are expensed in the period incurred and are not included as a component of inventory valuation. |
Net Income Per Share
Net Income Per Share | 6 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | Note 4. Net Income Per Share Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Net income $ 6,953 $ 5,200 $ 12,955 $ 10,438 Weighted average shares outstanding 19,215 17,779 19,064 17,700 Effective of dilutive stock options 367 393 352 354 Diluted shares outstanding 19,582 18,172 19,416 18,054 Basic net income per share $ 0.36 $ 0.29 $ 0.68 $ 0.59 Diluted net income per share $ 0.36 $ 0.29 $ 0.67 $ 0.58 There were no anti-dilutive options excluded from the dilutive shares outstanding for the three and six month periods ended June 30, 2015 and 2014. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2015 | |
Segment Reporting [Abstract] | |
Segment Information | Note 5. Segment Information The segment information and the accounting policies of each segment are the same as those described in the notes to the consolidated financial statements entitled “Segment Information” and “Summary of Significant Accounting Policies and Practices,” respectively, included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2014, which we filed with the SEC on March 16, 2015. Autocam Corporation (“Autocam”) was added to the Precision Metal Components segment during the third quarter of 2014 and the segment was renamed the Autocam Precision Components Segment during the fourth quarter of 2014. We account for inter-segment sales and transfers at current market prices. We did not have any significant inter-segment transactions during the three and six month periods ended June 30, 2015 and 2014. (In Thousands of Dollars) Metal Autocam Plastic and Segment Corporate and Total Three Months ended June 30, 2015 Revenues from external customers $ 69,261 $ 86,471 $ 9,124 $ — $ 164,856 Income from operations $ 9,403 $ 9,095 $ 501 $ (5,410 ) $ 13,589 (In Thousands of Dollars) Metal Autocam Plastic and Segment Corporate and Total Six Months ended June 30, 2015 Revenues from external customers $ 142,496 $ 169,093 $ 17,012 $ — $ 328,601 Income from operations $ 18,491 $ 16,813 $ 714 $ (8,494 ) $ 27,524 Total assets $ 209,986 $ 439,526 $ 28,202 $ 31,226 $ 708,940 (In Thousands of Dollars) Metal Autocam Plastic and Segment Corporate and Total Three Months ended June 30, 2014 Revenues from external customers $ 73,038 $ 25,267 $ 8,375 $ — $ 106,680 Income from operations $ 8,748 $ 2,306 $ 414 $ (3,231 ) $ 8,237 (In Thousands of Dollars) Metal Autocam Plastic and Segment Corporate and Total Six Months ended June 30, 2014 Revenues from external customers $ 143,938 $ 49,005 $ 16,265 $ — $ 209,208 Income from operations $ 17,520 $ 4,868 $ 649 $ (6,463 ) $ 16,574 Total assets $ 227,313 $ 54,529 $ 17,718 $ 7,860 $ 307,420 |
Long-Term Debt and Short-Term D
Long-Term Debt and Short-Term Debt | 6 Months Ended |
Jun. 30, 2015 | |
Debt Disclosure [Abstract] | |
Long-Term Debt and Short-Term Debt | Note 6. Long-Term Debt and Short-Term Debt Long-term debt and short-term debt at June 30, 2015 and December 31, 2014 consisted of the following: June 30, 2015 December 31, Borrowings under our $350,000 Term Loan B bearing interest at the greater of 1% or 3 month LIBOR (0.283% at June 30, 2015) plus an applicable margin of 5.00% at June 30, 2015 expiring August 29, 2021, net of discount of $4,620. $ 331,630 $ 340,005 Borrowings under our $100,000 ABL Revolver bearing interest at a floating rate equal to LIBOR (0.187% at June 30, 2015) plus an applicable margin of 1.75% at June 30, 2015 expiring August 29, 2019. 17,000 — French Safeguard obligations 2,362 2,560 Brazilian lines of credit and equipment notes 4,864 5,304 Chinese line of credit 3,427 2,317 Total debt 359,283 350,186 Less current maturities of long-term debt 23,345 22,160 Long-term debt, excluding current maturities of long-term debt $ 335,938 $ 328,026 Our $350,000 term loan facility may be expanded upon our request with approval of the lenders by up to $50,000 under the same terms and conditions. The term loan has a seven year maturity with a 5% per annum repayment. The term loan agreement is a covenant lite agreement with no financial covenants. The term loan agreement does contain customary restrictions on, among other things, additional indebtedness, liens on our assets, sales or transfers of assets, investments, issuance of equity securities, and mergers, acquisitions and other fundamental changes in our business including a “material adverse change” clause, which if triggered would give the lenders the right to accelerate the maturity of the debt. Costs associated with entering into the revolving credit facility were capitalized and will be amortized into interest expense over the life of the facility. As of June 30, 2015, $8,434 of net capitalized loan origination costs related to the term loan are reflected in the condensed consolidated balance sheet within other non-current assets. Our $100,000 asset backed loan, or ABL, may be expanded upon our request with approval of the lenders by up to $50,000 under the same terms and conditions. The ABL has a five year maturity and has one springing financial covenant in the event our availability on the ABL is less than $8,000. The ABL contains customary restrictions on, among other things, additional indebtedness, liens on our assets, sales or transfers of assets, investments, issuance of equity securities, and mergers, acquisitions and other fundamental changes in our business including a “material adverse change” clause, which if triggered would give the lenders the right to accelerate the maturity of the debt. The facility has a swing line feature to meet short term cash flow needs. Any borrowings under this swing line are considered short term. We incurred costs as a result of issuing the ABL, which have been recorded in the condensed consolidated balance sheet within other non-current assets and are being amortized over the term of the notes. The unamortized balance at June 30, 2015 was $1,158. We believe the book values of the above credit facilities approximate their fair values given the interest rates are variable and are consistent with market rates for a company with our credit profile. Our French operation (acquired with Autocam) has liabilities with certain creditors subject to Safeguard protection. The liabilities are being paid annually over a 10-year period until 2019 and carry a zero percent interest rate. Amounts due as of June 30, 2015, to those creditors opting to be paid over a 10-year period totaled $2,362 and are included in current maturities of long-term debt of $304 and long-term debt, net of current portion of $2,058. The Brazilian lines of credit include facilities with certain Brazilian banks used to fund working capital needs, while the equipment notes represent borrowings from certain Brazilian banks to fund equipment purchases for Autocam’s Brazilian plants. These credit facilities have annual interest rates ranging from 2.5% to 22.4%. The Chinese line of credit is a working capital line of credit with a Chinese bank bearing an annual interest rate of 4.95%. |
Goodwill, net
Goodwill, net | 6 Months Ended |
Jun. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill, net | Note 7. Goodwill, net The changes in the carrying amount of goodwill, net for the six month period ended June 30, 2015 are as follows: (In Thousands of Dollars) Metal Bearing Autocam Precision Segment Plastic and Total Balance as of January 1, 2015 $ 9,949 $ 73,992 — $ 83,941 Goodwill acquired in acquisition — — 2,099 2,099 Currency translation impacts (604 ) — — (604 ) Balance as of June 30, 2015 $ 9,345 $ 73,992 $ 2,099 $ 85,436 The goodwill balances are tested for impairment on an annual basis during the fourth quarter and between annual tests if a triggering event occurs. As of June 30, 2015, there were no indications of impairment at the reporting units with goodwill balances. |
Intangible Assets, Net
Intangible Assets, Net | 6 Months Ended |
Jun. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets, Net | Note 8. Intangible Assets, Net With the Caprock acquisition, we acquired intangible assets with a preliminary aggregate acquired value of $2,490. The intangible assets are a customer relationship intangible asset with a preliminary estimated value of $2,430 and a trade name intangible asset with a preliminary estimated value of $60. The preliminary estimated useful lives of the intangibles are 12 years and one year, respectively. These intangible assets are subject to amortization of approximately $203 per year with year- to-date amortization expense and accumulated amortization of $22 at June 30, 2015. Including the intangibles from the Caprock acquisition, we have gross intangible assets of $57,226 with accumulated amortization of 4,297, year to date amortization expense of $2,013 and annual expected amortization expense of $4,090. |
Shared-Based Compensation
Shared-Based Compensation | 6 Months Ended |
Jun. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Shared-Based Compensation | Note 9. Shared-Based Compensation During the three and six month periods ended June 30, 2015 and 2014, approximately $988 and $1,771 in 2015 and $714 and $1,286 in 2014, respectively, of compensation expense was recognized in selling, general and administrative expense for all share-based awards. During the six month period ended June 30, 2015, there were 115 restricted stock awards and 55 option awards to non-executive directors, officers and certain other key employees. Additionally, during the six months ended June 30, 2015, there were 70 performance stock units issued. During the six month period ended June 30, 2014, there were 97 restricted stock awards and 98 option awards to non-executive directors, officers and certain other key employees. The restricted shares granted during the six month period ended June 30, 2015, vest pro-rata over three years for officers and certain other key employees and over one year for non-executive directors. The restricted shares granted during the six month period ended June 30, 2014, vest pro-rata over three years. During the six month periods ended June 30, 2015 and 2014, we incurred $1,079 and $575, respectively, in expense related to restricted stock. The fair value of the shares issued was determined by using the grant date closing price of our common stock. The performance stock units granted during the six month period ended June 30, 2015, will be satisfied in the form of company stock during 2018 depending on meeting certain performance and/or market conditions. We are recognizing the compensation expense over the three year period in which the performance and market conditions are measured. During the six month periods ended June 30, 2015 and 2014, we incurred $182 and $0, respectively, in expense related to performance stock units. The fair value of the shares issued was determined by using the grant date closing price of our common stock for the units with a performance condition and a Monte Carlo valuation model was used to determine the fair value for shares that have a market condition. We incurred $510 and $711 of stock option expense in the six month periods ended June 30, 2015 and 2014, respectively. The fair value of our options cannot be determined by market value, because our options are not traded in an open market. Accordingly, we utilized the Black Scholes financial pricing model to estimate the fair value. The following table provides a reconciliation of option activity for the six month period ended June 30, 2015: Options Shares Weighted- Weighted- Aggregate Outstanding at January 1, 2015 1,175 $ 11.40 Granted 55 $ 25.16 Exercised (160 ) $ 11.49 Forfeited or expired (3 ) $ 13.12 Outstanding at June 30, 2015 1,067 $ 12.08 6.3 $ 14,341 (1) Exercisable at June 30, 2015 857 $ 10.91 5.7 $ 12,516 (1) (1) The intrinsic value is the amount by which the market price of our stock was greater than the exercise price of any individual option grant at June 30, 2015. |
Provision for Income Taxes
Provision for Income Taxes | 6 Months Ended |
Jun. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Provision for Income Taxes | Note 10. Provision for Income Taxes For the six month periods ended June 30, 2015 and 2014, our effective tax rates were 22% and 32%, respectively. The difference between the U.S. federal statutory tax rate of 34% and our effective tax rates was due to non-U.S. based earnings being taxed at lower rates reducing the effective rates for the six month periods ended June 30, 2015 and 2014, by 8% and 2%, respectively. As of June 30, 2015, we do not foresee any significant changes to our unrecognized tax benefits within the next twelve months. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 11. Commitments and Contingencies Brazil ICMS Tax Matter Prior to our acquisition of Autocam, Autocam’s Brazilian subsidiary received notification from the Brazilian tax authorities regarding ICMS (State Value Added Tax or VAT) tax credits claimed on intermediary materials (tooling and perishable items) used in the manufacturing process. The Brazilian tax authority notification disallowed state ICMS credits claimed on intermediary materials based on the argument that these items are not intrinsically related to the manufacturing processes. Autocam Brazil filed an administrative defense with the Brazilian tax authority arguing, among other matters, that it should qualify for ICMS tax credit, contending that the intermediary materials are directly related to the manufacturing process. We believe that we have substantial legal and factual defenses and plan to defend our interests in this matter vigorously. While we believe a loss is not probable, we estimate the range of possible loss related to this assessment is from $0 to $6,000. No amount was accrued at June 30, 2015 for this matter. There has been no change in the status of this matter from December 31, 2014 to June 30, 2015. We are entitled to indemnification from the former shareholders of Autocam, subject to the limitations and procedures set forth in the agreement and plan of merger. Management believes the indemnification would include amounts owed for the tax, interest and penalties related to this matter. All other legal proceedings are of an ordinary and routine nature and are incidental to our operations. Management believes that such proceedings should not, individually or in the aggregate, have a material adverse effect on our business, financial condition, results of operations or cash flows. In making that determination, we analyze the facts and circumstances of each case at least quarterly in consultation with our attorneys and determine a range of reasonably possible outcomes. |
Investment in Non-Consolidated
Investment in Non-Consolidated Joint Venture | 6 Months Ended |
Jun. 30, 2015 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investment in Non-Consolidated Joint Venture | Note 12. Investment in Non-Consolidated Joint Venture As part of the acquisition of Autocam, we acquired a 49% investment in a joint venture with an unrelated entity called Wuxi Weifu Autocam Precision Machinery Company, Ltd. (“JV”), a Chinese company located in Wuxi, China. Below are the components of our JV investment balance at June 30, 2015: January 1, 2015 $ 34,703 Capital contributed to the joint venture 1,372 Our share of cumulative earnings 2,758 Accretion of basis difference from purchase accounting (593 ) June 30, 2015 $ 38,240 Set forth below is summarized balance sheet information for the JV: June 30, 2015 December 31, Current assets $ 28,507 $ 24,140 Non-current assets 23,299 21,519 Total assets $ 51,806 $ 45,659 Current liabilities 11,919 $ 14,162 Total liabilities $ 11,919 $ 14,162 No dividends were declared by the JV during the three and six months ended June 30, 2015. We had sales to the JV of $44 and $64 during the three and six months ended June 30, 2015, respectively. Amounts due to us from the JV were $122 as of June 30, 2015. The JV had net sales in 2014 of $50,466 and net income of $9,004. In the first half of 2015, the JV had net sales and net income of $27,887 and $5,630, respectively. |
Interest Rate Hedging
Interest Rate Hedging | 6 Months Ended |
Jun. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Interest Rate Hedging | Note 13. Interest Rate Hedging Our policy is to manage interest expense using a mix of fixed and variable rate debt. To manage this mix effectively, we may enter into interest rate swaps in which we agree to exchange the difference between fixed and variable interest amounts calculated by reference to an agreed upon notional principal amount. On December 16, 2014, we entered into a $150,000 interest rate swap that will go into effect on December 29, 2015 (one year delayed start), at which time our interest rate will be locked at 7.216% until December 31, 2018. Prior to December 16, 2014, we did not have any existing interest rate hedges. The hedge instrument will be 100% effective and as such the mark to market gains or losses on this hedge will be included in accumulated other comprehensive income (loss) to the extent effective, and reclassified into interest expense over the term of the related debt instruments. The table below summarizes the fair value measurements of the gross asset and liability of this swap as of June 30, 2015, valued on a recurring basis: (Dollars in thousands) Fair Value Measurements at June 30, 2015 Description June 30, 2015 Quoted Prices in Significant Other Significant Derivative asset $ 977 $ — $ 977 $ — Derivative liability (3,033 ) — (3,033 ) — $ (2,056 ) $ — $ (2,056 ) $ — The interest rate swap derivative is classified as Level 2. Level 2 fair value is based on estimates using standard pricing models. These standard pricing models use inputs which are derived from or corroborated by observable market data such as interest rate yield curves, index forward curves, discount curves, and volatility surfaces. Counterparties to these derivative contracts are highly rated financial institutions which we believe carry only a minimal risk of nonperformance. We have elected to present the derivative contracts on a gross basis in the Condensed Consolidated Balance Sheet included within other non-current assets and other non-current liabilities. Had we chosen to present the derivative contract on a net basis, we would have a derivative in a net liability position of $2,056 as of June 30, 2015. We do not have any cash collateral due under such agreements. Derivatives’ Hedging Relationships (Dollars in thousands) Amount of after tax of gain/ Location of gain/(loss) Pre-tax amount of gain/(loss) Derivatives’ Cash Flow Hedging Relationships June 30, 2015 December 31, 2014 June 30, 2015 December 31, 2014 Forward starting interest rate swap contract $ (2,056 ) $ (431 ) Interest Expense $ — $ — $ (2,056 ) $ (431 ) $ — $ — |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 14. Subsequent Events On July 1, 2015, we closed an underwritten registered public offering of common stock offered pursuant to a shelf registration statement on Form S-3 that was previously filed with, and declared effective by, the SEC. The total number of shares of common stock sold was 7,590 at a public offering price of $24.00 per share. All of the shares in the offering were sold by NN. The net proceeds to NN from the offering, after deducting underwriting discounts and commissions and offering expenses, were approximately $173,052. Of these proceeds, $148,739 was used for repayment of principal and interest on our Term Loan B and ABL Revolver subsequent to quarter end and the remainder is currently being held in cash. |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Inventory Disclosure [Abstract] | |
Summary of Inventories | Inventories are comprised of the following: June 30, December 31, Raw materials 37,104 $ 35,191 Work in process 20,470 21,883 Finished goods 30,354 34,395 87,928 $ 91,469 |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share [Abstract] | |
Summary of Net Income Per Share | Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Net income $ 6,953 $ 5,200 $ 12,955 $ 10,438 Weighted average shares outstanding 19,215 17,779 19,064 17,700 Effective of dilutive stock options 367 393 352 354 Diluted shares outstanding 19,582 18,172 19,416 18,054 Basic net income per share $ 0.36 $ 0.29 $ 0.68 $ 0.59 Diluted net income per share $ 0.36 $ 0.29 $ 0.67 $ 0.58 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Segment Reporting [Abstract] | |
Segment Information | (In Thousands of Dollars) Metal Autocam Plastic and Segment Corporate and Total Three Months ended June 30, 2015 Revenues from external customers $ 69,261 $ 86,471 $ 9,124 $ — $ 164,856 Income from operations $ 9,403 $ 9,095 $ 501 $ (5,410 ) $ 13,589 (In Thousands of Dollars) Metal Autocam Plastic and Segment Corporate and Total Six Months ended June 30, 2015 Revenues from external customers $ 142,496 $ 169,093 $ 17,012 $ — $ 328,601 Income from operations $ 18,491 $ 16,813 $ 714 $ (8,494 ) $ 27,524 Total assets $ 209,986 $ 439,526 $ 28,202 $ 31,226 $ 708,940 (In Thousands of Dollars) Metal Autocam Plastic and Segment Corporate and Total Three Months ended June 30, 2014 Revenues from external customers $ 73,038 $ 25,267 $ 8,375 $ — $ 106,680 Income from operations $ 8,748 $ 2,306 $ 414 $ (3,231 ) $ 8,237 (In Thousands of Dollars) Metal Autocam Plastic and Segment Corporate and Total Six Months ended June 30, 2014 Revenues from external customers $ 143,938 $ 49,005 $ 16,265 $ — $ 209,208 Income from operations $ 17,520 $ 4,868 $ 649 $ (6,463 ) $ 16,574 Total assets $ 227,313 $ 54,529 $ 17,718 $ 7,860 $ 307,420 |
Long-Term Debt and Short-Term23
Long-Term Debt and Short-Term Debt (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Debt Disclosure [Abstract] | |
Summary of Long-Term Debt and Short-Term Debt | Long-term debt and short-term debt at June 30, 2015 and December 31, 2014 consisted of the following: June 30, 2015 December 31, Borrowings under our $350,000 Term Loan B bearing interest at the greater of 1% or 3 month LIBOR (0.283% at June 30, 2015) plus an applicable margin of 5.00% at June 30, 2015 expiring August 29, 2021, net of discount of $4,620. $ 331,630 $ 340,005 Borrowings under our $100,000 ABL Revolver bearing interest at a floating rate equal to LIBOR (0.187% at June 30, 2015) plus an applicable margin of 1.75% at June 30, 2015 expiring August 29, 2019. 17,000 — French Safeguard obligations 2,362 2,560 Brazilian lines of credit and equipment notes 4,864 5,304 Chinese line of credit 3,427 2,317 Total debt 359,283 350,186 Less current maturities of long-term debt 23,345 22,160 Long-term debt, excluding current maturities of long-term debt $ 335,938 $ 328,026 |
Goodwill, net (Tables)
Goodwill, net (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in Carrying Amount of Goodwill | The changes in the carrying amount of goodwill, net for the six month period ended June 30, 2015 are as follows: (In Thousands of Dollars) Metal Bearing Autocam Precision Segment Plastic and Total Balance as of January 1, 2015 $ 9,949 $ 73,992 — $ 83,941 Goodwill acquired in acquisition — — 2,099 2,099 Currency translation impacts (604 ) — — (604 ) Balance as of June 30, 2015 $ 9,345 $ 73,992 $ 2,099 $ 85,436 |
Shared-Based Compensation (Tabl
Shared-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Reconciliation of Option Activity | The following table provides a reconciliation of option activity for the six month period ended June 30, 2015: Options Shares Weighted- Weighted- Aggregate Outstanding at January 1, 2015 1,175 $ 11.40 Granted 55 $ 25.16 Exercised (160 ) $ 11.49 Forfeited or expired (3 ) $ 13.12 Outstanding at June 30, 2015 1,067 $ 12.08 6.3 $ 14,341 (1) Exercisable at June 30, 2015 857 $ 10.91 5.7 $ 12,516 (1) (1) The intrinsic value is the amount by which the market price of our stock was greater than the exercise price of any individual option grant at June 30, 2015. |
Investment in Non-Consolidate26
Investment in Non-Consolidated Joint Venture (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Components of Joint Venture Investment | Below are the components of our JV investment balance at June 30, 2015: January 1, 2015 $ 34,703 Capital contributed to the joint venture 1,372 Our share of cumulative earnings 2,758 Accretion of basis difference from purchase accounting (593 ) June 30, 2015 $ 38,240 |
Summarized Balance Sheet Information for Joint Venture | Set forth below is summarized balance sheet information for the JV: June 30, 2015 December 31, Current assets $ 28,507 $ 24,140 Non-current assets 23,299 21,519 Total assets $ 51,806 $ 45,659 Current liabilities 11,919 $ 14,162 Total liabilities $ 11,919 $ 14,162 |
Interest Rate Hedging (Tables)
Interest Rate Hedging (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Effect of Financial Assets and Liabilities Valued on Recurring Basis | The table below summarizes the fair value measurements of the gross asset and liability of this swap as of June 30, 2015, valued on a recurring basis: (Dollars in thousands) Fair Value Measurements at June 30, 2015 Description June 30, 2015 Quoted Prices in Significant Other Significant Derivative asset $ 977 $ — $ 977 $ — Derivative liability (3,033 ) — (3,033 ) — $ (2,056 ) $ — $ (2,056 ) $ — |
Effect of Derivatives' Hedging Relationships | Derivatives’ Hedging Relationships (Dollars in thousands) Amount of after tax of gain/ Location of gain/(loss) Pre-tax amount of gain/(loss) Derivatives’ Cash Flow Hedging Relationships June 30, 2015 December 31, 2014 June 30, 2015 December 31, 2014 Forward starting interest rate swap contract $ (2,056 ) $ (431 ) Interest Expense $ — $ — $ (2,056 ) $ (431 ) $ — $ — |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) - USD ($) $ in Thousands | May. 29, 2015 | Jun. 20, 2014 | Jan. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 |
Business Acquisition [Line Items] | ||||||
Intangible assets subject to acquisition | $ 57,226 | |||||
Purchase price allocation, goodwill | 85,436 | $ 83,941 | ||||
Operating assets acquired in cash | $ 8,966 | $ 16,217 | ||||
VS [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Date of acquisition | Jan. 30, 2014 | |||||
Operating assets acquired in cash | $ 5,580 | |||||
Liabilities assumed | $ 2,968 | |||||
RFK [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Date of acquisition | Jun. 20, 2014 | |||||
Payments to acquire | $ 9,756 | |||||
Percentage of shares acquired | 79.20% | |||||
Non-controlling interest | $ 2,559 | |||||
Percentage of shares owned by non controlling owners | 20.80% | |||||
Caprock [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Date of acquisition | May 29, 2015 | |||||
Payments to acquire | $ 9,000 | |||||
Purchase price allocation, net working capital | 1,452 | |||||
Purchase price allocation, property plant and equipment | 2,960 | |||||
Intangible assets subject to acquisition | 2,490 | $ 2,490 | ||||
Purchase price allocation, goodwill | $ 2,099 | |||||
Maximum [Member] | RFK [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Percentage of shares acquired | 99.70% | |||||
Second Half of 2014 [Member] | RFK [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Payments to acquire | $ 2,528 |
Inventories - Summary of Invent
Inventories - Summary of Inventories (Detail) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 37,104 | $ 35,191 |
Work in process | 20,470 | 21,883 |
Finished goods | 30,354 | 34,395 |
Inventories | $ 87,928 | $ 91,469 |
Inventories - Additional Inform
Inventories - Additional Information (Detail) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Inventory Disclosure [Abstract] | ||
Inventory on consignment at customers' location | $ 4,981 | $ 5,857 |
Net Income Per Share - Summary
Net Income Per Share - Summary of Net Income Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Earnings Per Share [Abstract] | ||||
Net income | $ 6,953 | $ 5,200 | $ 12,955 | $ 10,438 |
Weighted average shares outstanding | 19,215 | 17,779 | 19,064 | 17,700 |
Effective of dilutive stock options | 367 | 393 | 352 | 354 |
Diluted shares outstanding | 19,582 | 18,172 | 19,416 | 18,054 |
Basic net income per share | $ 0.36 | $ 0.29 | $ 0.68 | $ 0.59 |
Diluted net income per share | $ 0.36 | $ 0.29 | $ 0.67 | $ 0.58 |
Net Income Per Share - Addition
Net Income Per Share - Additional Information (Detail) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Earnings Per Share [Abstract] | ||||
Anti-dilutive options | 0 | 0 | 0 | 0 |
Segment Information - Segment I
Segment Information - Segment Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Segment Reporting Information [Line Items] | |||||
Revenues from external customers | $ 164,856 | $ 106,680 | $ 328,601 | $ 209,208 | |
Income from operations | 13,589 | 8,237 | 27,524 | 16,574 | |
Total assets | 708,940 | 307,420 | 708,940 | 307,420 | $ 712,713 |
Operating Segments [Member] | Metal Bearing Components Segment [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues from external customers | 69,261 | 73,038 | 142,496 | 143,938 | |
Income from operations | 9,403 | 8,748 | 18,491 | 17,520 | |
Total assets | 209,986 | 227,313 | 209,986 | 227,313 | |
Operating Segments [Member] | Autocam Precision Components Segment [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues from external customers | 86,471 | 25,267 | 169,093 | 49,005 | |
Income from operations | 9,095 | 2,306 | 16,813 | 4,868 | |
Total assets | 439,526 | 54,529 | 439,526 | 54,529 | |
Operating Segments [Member] | Plastic and Rubber Components Segment [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues from external customers | 9,124 | 8,375 | 17,012 | 16,265 | |
Income from operations | 501 | 414 | 714 | 649 | |
Total assets | 28,202 | 17,718 | 28,202 | 17,718 | |
Corporate and Consolidations [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Income from operations | (5,410) | (3,231) | (8,494) | (6,463) | |
Total assets | $ 31,226 | $ 7,860 | $ 31,226 | $ 7,860 |
Long-Term Debt and Short-Term34
Long-Term Debt and Short-Term Debt - Summary of Long-Term Debt and Short-Term Debt (Detail) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Debt Instrument [Line Items] | ||
Total debt | $ 359,283 | $ 350,186 |
Less current maturities of long-term debt | 23,345 | 22,160 |
Long-term debt, excluding current maturities of long-term debt | 335,938 | 328,026 |
French Safeguard [Member] | ||
Debt Instrument [Line Items] | ||
French Safeguard obligations | 2,362 | 2,560 |
Brazilian [Member] | ||
Debt Instrument [Line Items] | ||
Borrowings under line of credit | 4,864 | 5,304 |
Chinese [Member] | ||
Debt Instrument [Line Items] | ||
Borrowings under line of credit | 3,427 | 2,317 |
Term Loan B [Member] | ||
Debt Instrument [Line Items] | ||
Borrowings under our $350,000 Term Loan B bearing interest at the greater of 1% or 3 month LIBOR (0.283% at June 30, 2015) plus an applicable margin of 5.00% at June 30, 2015 expiring August 29, 2021, net of discount of $4,620. | 331,630 | $ 340,005 |
ABL Revolver [Member] | ||
Debt Instrument [Line Items] | ||
Borrowings under line of credit | $ 17,000 |
Long-Term Debt and Short-Term35
Long-Term Debt and Short-Term Debt - Summary of Long-Term Debt and Short-Term Debt (Parenthetical) (Detail) - Jun. 30, 2015 - USD ($) | Total |
Term Loan B [Member] | |
Debt Instrument [Line Items] | |
Borrowings | $ 350,000,000 |
LIBOR rate | 0.283% |
Applicable margin | 5.00% |
Interest bearing rate | 1.00% |
LIBOR Period | 3 months |
Debt maturity date | Aug. 29, 2021 |
Debt discount | $ 4,620,000 |
ABL Revolver [Member] | |
Debt Instrument [Line Items] | |
Borrowings | $ 100,000,000 |
LIBOR rate | 0.187% |
Applicable margin | 1.75% |
Debt maturity date | Aug. 29, 2019 |
Long-Term Debt and Short-Term36
Long-Term Debt and Short-Term Debt - Additional Information (Detail) - USD ($) | 6 Months Ended | |
Jun. 30, 2015 | Dec. 31, 2014 | |
French Safeguard [Member] | ||
Line of Credit Facility [Line Items] | ||
Interest rate | 0.00% | |
French Safeguard obligations | $ 2,362,000 | $ 2,560,000 |
Current maturities of French Safeguard obligations | 304,000 | |
Noncurrent maturities of French Safeguard obligations | $ 2,058,000 | |
Chinese [Member] | ||
Line of Credit Facility [Line Items] | ||
Annual interest rate | 4.95% | |
Term Loan B [Member] | ||
Line of Credit Facility [Line Items] | ||
Borrowings | $ 350,000,000 | |
Maturity period | 7 years | |
Repayment of term loan, percentage | 5.00% | |
Potential to expand credit facility under credit agreement | $ 50,000,000 | |
Unamortized balance | $ 8,434,000 | |
ABL Revolver [Member] | ||
Line of Credit Facility [Line Items] | ||
Maturity period | 5 years | |
Repayment of term loan, percentage | 1.75% | |
Potential to expand credit facility under credit agreement | $ 50,000,000 | |
Unamortized balance | 1,158,000 | |
Borrowings | 100,000,000 | |
ABL borrowing | $ 8,000,000 | |
Minimum [Member] | French Safeguard [Member] | ||
Line of Credit Facility [Line Items] | ||
Creditor's claim period | 10 years | |
Minimum [Member] | Brazilian [Member] | ||
Line of Credit Facility [Line Items] | ||
Lines of credit interest rate | 2.50% | |
Maximum [Member] | Brazilian [Member] | ||
Line of Credit Facility [Line Items] | ||
Lines of credit interest rate | 22.40% |
Goodwill, net - Changes in Carr
Goodwill, net - Changes in Carrying Amount of Goodwill (Detail) $ in Thousands | 6 Months Ended |
Jun. 30, 2015USD ($) | |
Goodwill [Line Items] | |
Beginning Balance | $ 83,941 |
Goodwill acquired in acquisition | 2,099 |
Currency translation impacts | (604) |
Ending Balance | 85,436 |
Metal Bearing Components Segment [Member] | |
Goodwill [Line Items] | |
Beginning Balance | 9,949 |
Currency translation impacts | (604) |
Ending Balance | 9,345 |
Autocam Precision Components Segment [Member] | |
Goodwill [Line Items] | |
Beginning Balance | 73,992 |
Ending Balance | 73,992 |
Plastic and Rubber Components Segment [Member] | |
Goodwill [Line Items] | |
Goodwill acquired in acquisition | 2,099 |
Ending Balance | $ 2,099 |
Goodwill, net - Additional Info
Goodwill, net - Additional Information (Detail) $ in Thousands | 6 Months Ended |
Jun. 30, 2015USD ($) | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Impairment of goodwill | $ 0 |
Intangible Assets, Net - Additi
Intangible Assets, Net - Additional Information (Detail) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | May. 29, 2015 | |
Intangible Assets [Line Items] | ||
Intangible assets subject to acquisition | $ 57,226 | |
Amortization of intangible assets | 4,090 | |
Amortization expense | 2,013 | |
Accumulated amortization | 4,297 | |
Caprock [Member] | ||
Intangible Assets [Line Items] | ||
Intangible assets subject to acquisition | 2,490 | $ 2,490 |
Amortization of intangible assets | 203 | |
Amortization expense | 22 | |
Customer Relationship [Member] | Caprock [Member] | ||
Intangible Assets [Line Items] | ||
Intangible assets subject to acquisition | $ 2,430 | |
Preliminary estimated intangible assets useful life | 12 years | |
Trade Name [Member] | Caprock [Member] | ||
Intangible Assets [Line Items] | ||
Intangible assets subject to acquisition | $ 60 | |
Preliminary estimated intangible assets useful life | 1 year |
Shared-Based Compensation - Add
Shared-Based Compensation - Additional Information (Detail) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | $ 1,771 | $ 1,286 | ||
Number of options granted | 55 | 98 | ||
Non-Executive Directors [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period of stock issue | 1 year | |||
Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock units issued | 115 | 97 | ||
Expenses related to issuance of restricted stock | $ 1,079 | $ 575 | ||
Restricted Stock [Member] | Officers and Key Employees [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period of stock issue | 3 years | 3 years | ||
Performance Shares [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | $ 182 | $ 0 | ||
Stock units issued | 70 | |||
Compensation expense period | 3 years | |||
Stock Option [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | $ 510 | 711 | ||
Selling, General and Administrative Expense [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | $ 988 | $ 714 | $ 1,771 | $ 1,286 |
Shared-Based Compensation - Rec
Shared-Based Compensation - Reconciliation of Option Activity (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | ||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Number of options, Outstanding, Beginning Balance | 1,175 | ||
Number of Options, Granted | 55 | 98 | |
Number of Options, Exercised | (160) | ||
Number of Options, Forfeited or expired | (3) | ||
Number of Options, Outstanding, Ending Balance | 1,067 | ||
Number of Options, Options Exercisable | 857 | ||
Weighted-Average Exercise Price, Outstanding, Beginning Balance | $ 11.40 | ||
Weighted-Average Exercise Price, Granted | 25.16 | ||
Weighted-Average Exercise Price, Exercised | 11.49 | ||
Weighted-Average Exercise Price, Forfeited or expired | 13.12 | ||
Weighted-Average Exercise Price, Outstanding, Ending Balance | 12.08 | ||
Weighted-Average Exercise Price, Options exercisable | $ 10.91 | ||
Weighted-Average Remaining Contractual Term, Outstanding, Ending Balance | 6 years 3 months 18 days | ||
Weighted- Average Remaining Contractual Term, Options exercisable | 5 years 8 months 12 days | ||
Aggregate Intrinsic Value, Outstanding, Ending Balance | [1] | $ 14,341 | |
Aggregate Intrinsic Value, Options exercisable | [1] | $ 12,516 | |
[1] | The intrinsic value is the amount by which the market price of our stock was greater than the exercise price of any individual option grant at June 30, 2015. |
Provision for Income Taxes - Ad
Provision for Income Taxes - Additional Information (Detail) | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Income Tax Disclosure [Abstract] | ||
State and Local effective income tax rate | 22.00% | 32.00% |
U.S. federal statutory rate | 34.00% | |
Non-U.S. based earnings being taxed at lower rates reducing the effective rate | (8.00%) | (2.00%) |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) | Jun. 30, 2015USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Possible loss estimated minimum | $ 0 |
Possible loss estimated maximum | 6,000,000 |
Amount accrued for estimation of loss | $ 0 |
Investment in Non-Consolidate44
Investment in Non-Consolidated Joint Venture - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Schedule of Equity Method Investments [Line Items] | |||||
Net sales | $ 164,856,000 | $ 106,680,000 | $ 328,601,000 | $ 209,208,000 | |
Net income | $ 6,953,000 | $ 5,200,000 | $ 12,955,000 | $ 10,438,000 | |
Joint Venture [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Acquired investment in joint venture | 49.00% | 49.00% | |||
Autocam [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Dividend declared by joint venture | $ 0 | $ 0 | |||
Net sales | 44,000 | 64,000 | |||
Amount due from joint venture | $ 122,000 | 122,000 | |||
Autocam [Member] | Joint Venture [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Net sales | 27,887,000 | $ 50,466,000 | |||
Net income | $ 5,630,000 | $ 9,004,000 |
Investment in Non-Consolidate45
Investment in Non-Consolidated Joint Venture - Components of Joint Venture Investment (Detail) - Jun. 30, 2015 - USD ($) $ in Thousands | Total | Total |
Schedule of Equity Method Investments [Line Items] | ||
Beginning Balance | $ 34,703 | |
Capital contributed to the joint venture | 1,372 | |
Our share of cumulative earnings | $ 1,021 | 1,882 |
Ending Balance | 38,240 | 38,240 |
Joint Venture [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Beginning Balance | 34,703 | |
Capital contributed to the joint venture | 1,372 | |
Our share of cumulative earnings | 2,758 | |
Accretion of basis difference from purchase accounting | (593) | |
Ending Balance | $ 38,240 | $ 38,240 |
Investment in Non-Consolidate46
Investment in Non-Consolidated Joint Venture - Summarized Balance Sheet Information for Joint Venture (Detail) - Joint Venture [Member] - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Schedule of Equity Method Investments [Line Items] | ||
Current assets | $ 28,507 | $ 24,140 |
Non-current assets | 23,299 | 21,519 |
Total assets | 51,806 | 45,659 |
Current liabilities | 11,919 | 14,162 |
Total liabilities | $ 11,919 | $ 14,162 |
Interest Rate Hedging - Additio
Interest Rate Hedging - Additional Information (Detail) - USD ($) $ in Thousands | Dec. 16, 2014 | Jun. 30, 2015 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Amount of interest rate swap | $ 150,000 | |
Description of term of interest rate swap | On December 16, 2014, we entered into a $150,000 interest rate swap that will go into effect on December 29, 2015 (one year delayed start), at which time our interest rate will be locked at 7.216% until December 31, 2018. | |
Locked interest rate | 7.216% | |
Derivative maturity date | Dec. 31, 2018 | |
Derivative inception date | Dec. 29, 2015 | |
Derivative in Net liability position | $ 2,056 |
Interest Rate Hedging - Financi
Interest Rate Hedging - Financial Assets and Liabilities Valued on Recurring Basis (Detail) $ in Thousands | Jun. 30, 2015USD ($) |
Derivatives, Fair Value [Line Items] | |
Derivative asset | $ 977 |
Derivative liability | (3,033) |
Derivative asset and liability, Total | (2,056) |
Significant Other Observable Inputs Level 2 [Member] | |
Derivatives, Fair Value [Line Items] | |
Derivative asset | 977 |
Derivative liability | (3,033) |
Derivative asset and liability, Total | $ (2,056) |
Interest Rate Hedging - Derivat
Interest Rate Hedging - Derivatives' Cash Flow Hedging Relationships (Detail) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Dec. 31, 2014 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of after tax of gain/(loss) recognized in Other Comprehensive Income on Derivatives (effective portion) | $ (2,056) | $ (431) |
Pre-tax amount of gain/(loss) reclassified from Accumulated Other Comprehensive Income into Income (effective portion) | 0 | 0 |
Interest Expense [Member] | Forward Starting Interest Rate Swap Contract [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of after tax of gain/(loss) recognized in Other Comprehensive Income on Derivatives (effective portion) | (2,056) | (431) |
Pre-tax amount of gain/(loss) reclassified from Accumulated Other Comprehensive Income into Income (effective portion) | $ 0 | $ 0 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - Jul. 01, 2015 - Subsequent Event [Member] - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | Total |
Subsequent Event [Line Items] | |
Number of shares of common stock sold | 7,590 |
Public offering price per share | $ 24 |
Net proceeds to NN from the offering | $ 173,052 |
Repayment of term loan and ABL revolver | $ 148,739 |