Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2017 | May 01, 2017 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 | |
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 | 27,465,072 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Income Statement [Abstract] | ||
Net sales | $ 226,314 | $ 212,226 |
Cost of products sold (exclusive of depreciation and amortization shown separately below) | 166,954 | 159,754 |
Selling, general and administrative | 21,494 | 20,712 |
Depreciation and amortization | 15,568 | 17,348 |
Restructuring and integration | 140 | 2,538 |
Income from operations | 22,158 | 11,874 |
Interest expense | 14,956 | 16,422 |
Derivative losses on change in interest rate swap fair value | (88) | |
Other (income) expense, net | (724) | (1,129) |
Income (loss) before provision (benefit) for income taxes and share of net income from joint venture | 8,014 | (3,419) |
Provision (benefit) expense for income taxes | 2,300 | (720) |
Share of net income from joint venture | 1,693 | 1,400 |
Net income (loss) | 7,407 | (1,299) |
Other comprehensive income: | ||
Change in fair value of interest rate hedge | (1,002) | |
Foreign currency translation gain | 4,706 | 6,719 |
Other comprehensive income | 4,706 | 5,717 |
Comprehensive income | $ 12,113 | $ 4,418 |
Basic income per share: | ||
Net income (loss) | $ 0.27 | $ (0.05) |
Weighted average shares outstanding | 27,303 | 26,869 |
Diluted income per share: | ||
Net income (loss) | $ 0.27 | $ (0.05) |
Weighted average shares outstanding | 27,634 | 26,869 |
Cash dividends per common share | $ 0.07 | $ 0.07 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash | $ 19,583 | $ 14,405 |
Accounts receivable, net | 159,569 | 139,547 |
Inventories | 116,561 | 114,851 |
Other current assets | 14,629 | 11,752 |
Total current assets | 310,342 | 280,555 |
Property, plant and equipment, net | 328,214 | 322,953 |
Goodwill, net | 451,447 | 450,311 |
Intangible assets, net | 250,112 | 255,981 |
Investment in joint venture | 42,387 | 40,694 |
Other non-current assets | 8,541 | 9,892 |
Total assets | 1,391,043 | 1,360,386 |
Current liabilities: | ||
Accounts payable | 77,673 | 75,719 |
Accrued salaries, wages and benefits | 23,450 | 24,996 |
Income taxes payable | 8,014 | 2,125 |
Current maturities of long-term debt | 10,753 | 12,751 |
Current portion of obligation under capital lease | 3,664 | 3,762 |
Other current liabilities | 26,633 | 19,263 |
Total current liabilities | 150,187 | 138,616 |
Non-current deferred tax liabilities | 99,051 | 99,591 |
Long-term debt, net of current portion | 799,450 | 785,713 |
Accrued post-employment benefits | 5,512 | 5,765 |
Obligation under capital lease, net of current portion | 5,063 | 5,851 |
Other | 3,901 | 9,651 |
Total liabilities | 1,063,164 | 1,045,187 |
Total stockholders' equity | 327,879 | 315,199 |
Total liabilities and stockholders' equity | $ 1,391,043 | $ 1,360,386 |
Condensed Consolidated Stateme4
Condensed Consolidated Statement of Changes in Stockholders' Equity (Unaudited) - 3 months ended Mar. 31, 2017 - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock [Member] | Additional Paid in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (loss) [Member] | Non-controlling Interest [Member] |
Beginning Balance at Dec. 31, 2016 | $ 315,199 | $ 272 | $ 284,508 | $ 55,509 | $ (25,122) | $ 32 |
Beginning Balance, Shares at Dec. 31, 2016 | 27,249 | |||||
Net income (Loss) | 7,407 | 7,407 | ||||
Dividends paid | (1,910) | (1,910) | ||||
Stock option expense | 381 | 381 | ||||
Shares issued for option exercises | $ 912 | $ 1 | 911 | |||
Shares issued for option exercises, shares | 81 | 80 | ||||
Restricted and performance based stock compensation expense | $ 771 | 771 | ||||
Restricted and performance based stock compensation expense,shares | 83 | |||||
Restricted shares forgiven for taxes and forfeited | (327) | (327) | ||||
Restricted shares forgiven for taxes and forfeited, shares | (14) | |||||
Foreign currency translation gain | 4,706 | 4,706 | ||||
Adoption of new accounting standard (see Note 1) | 740 | 740 | ||||
Ending Balance at Mar. 31, 2017 | $ 327,879 | $ 273 | $ 286,244 | $ 61,746 | $ (20,416) | $ 32 |
Ending Balance, Shares at Mar. 31, 2017 | 27,398 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Cash flows from operating activities: | ||
Net income(loss) | $ 7,407 | $ (1,299) |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 15,568 | 17,348 |
Amortization of debt issuance costs | 1,221 | 911 |
Total derivative mark-to-market gains, net of cash settlements | (88) | |
Joint venture net income in excess of cash received | (1,693) | (1,400) |
Compensation expense from issuance of restricted stock and incentive stock options | 1,152 | 1,001 |
Deferred income tax benefit | 1,029 | |
Changes in operating assets and liabilities: | ||
Accounts receivable | (19,332) | (20,318) |
Inventories | (1,025) | (283) |
Accounts payable | 1,394 | 1,191 |
Other | 605 | 5,341 |
Net cash provided by operating activities | 5,209 | 3,521 |
Cash flows from investing activities: | ||
Acquisition of property, plant and equipment | (8,565) | (8,008) |
Proceeds from disposals of property, plant and equipment | 27 | 17 |
Net cash used by investing activities | (8,538) | (7,991) |
Cash flows from financing activities: | ||
Dividends Paid | (1,910) | (1,879) |
Proceeds from long-term debt | 14,000 | 11,000 |
Repayment of long-term debt | (1,437) | (1,437) |
Repayment of short-term debt, net | (2,045) | (969) |
Proceeds from issuance of stock and exercise of stock options | 912 | |
Shares withheld to satisfy income tax withholding | (327) | (89) |
Principal payments on capital lease | (901) | (1,342) |
Net cash provided by financing activities | 8,292 | 5,284 |
Effect of exchange rate changes on cash flows | 215 | (822) |
Net change in cash and cash equivalents | 5,178 | (8) |
Cash and cash equivalents at beginning of period | 14,405 | 15,087 |
Cash and cash equivalents at end of period | $ 19,583 | $ 15,079 |
Interim Financial Statements
Interim Financial Statements | 3 Months Ended |
Mar. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Interim Financial Statements | Note 1. Interim Financial Statements We are a diversified industrial company and a leading global manufacturer of high precision bearing components, industrial plastic products and precision metal components to a variety of markets on a global basis. We have 40 manufacturing plants in North America, Western Europe, Eastern Europe, South America and Asia. Our business is aggregated into three reportable segments, the Precision Bearing Components Group, the Precision Engineered Products Group and the Autocam Precision Components Group. As used in this Quarterly Report on Form 10-Q, the The accompanying Condensed Consolidated Financial Statements of NN, Inc. have not been audited, except that the Condensed Consolidated Balance Sheet at December 31, 2016 was derived from our audited consolidated financial statements included in our Annual Report on Form 10-K 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. Newly Adopted Accounting Standards During March 2016, accounting standard update (“ASU”) 2016-09 paid-in 2016-09 Issuance of New Accounting Standards In May 2014, the FASB issued accounting guidance that provides a single, comprehensive revenue recognition model for all contracts with customers and supersedes most of the existing revenue recognition requirements. Under this guidance, an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In August 2015, the FASB issued accounting guidance that delayed the effective date of this standard by one year, making the guidance effective for fiscal years beginning after December 15, 2017. The new revenue guidance may impact the timing of recognition for certain Company’s customer incentives. Factors that will affect pre-and On February 25, 2016, the FASB issued ASU 2016-02, 2016-02”). 2016-02 2016-02 The FASB issued ASU 2016-15 2016-15”). During January 2017, the FASB issued ASU 2017-04 Except for per share data or as otherwise indicated, all dollar amounts presented in the tables in these Notes to the Condensed Consolidated Financial Statements are in thousands. |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2017 | |
Inventory Disclosure [Abstract] | |
Inventories | Note 2. Inventories Inventories are comprised of the following: March 31, December 31, Raw materials $ 51,022 $ 49,205 Work in process 32,829 31,348 Finished goods 32,710 34,298 Inventories $ 116,561 $ 114,851 Inventories on consignment at customer locations as of March 31, 2017 and December 31, 2016 totaled $4.4 million and $5.0 million, respectively. Inventories are stated at the lower of cost or net realizable value. 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 underutilization 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 | 3 Months Ended |
Mar. 31, 2017 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | Note 3. Net Income Per Share Three Months Ended 2017 2016 Net income (loss) $ 7,407 $ (1,299 ) Weighted average shares outstanding 27,303 26,869 Effect of dilutive stock options 331 — Diluted shares outstanding 27,634 26,869 Basic net income (loss) per share $ 0.27 $ (0.05 ) Diluted net income (loss) per share $ 0.27 $ (0.05 ) For both the three month periods ended March 31, 2017 and 2016, approximately 0.6 million and 0.8 million potentially dilutive stock options, respectively, had the effect of being anti-dilutive and were excluded from the calculation of diluted earnings per share |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2017 | |
Segment Reporting [Abstract] | |
Segment Information | Note 4. 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 the 2016 Annual Report. Our business is aggregated into three reportable segments, the Precision Bearing Components Group, the Precision Engineered Products Group and the Autocam Precision Components Group. We account for inter-segment sales and transfers at current market prices. We did not have any significant inter-segment transactions during the three month period ended March 31, 2017. Precision Autocam Precision Corporate and Total Three Months ended March 31, 2017 Revenues from external customers $ 68,759 $ 86,446 $ 71,109 $ — $ 226,314 Income (loss) from operations $ 8,402 $ 10,601 $ 10,914 $ (7,759 ) $ 22,158 Total assets $ 226,829 $ 428,512 $ 727,418 $ 8,284 $ 1,391,043 Three Months ended March 31, 2016 Revenues from external customers $ 64,745 $ 83,990 $ 63,491 $ — $ 212,226 Income (loss) from operations $ 6,326 $ 6,527 $ 5,421 $ (6,400 ) $ 11,874 Total assets $ 227,852 $ 426,741 $ 737,956 $ 3,068 $ 1,395,617 |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
Mar. 31, 2017 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Note 5. Long-Term Debt Long-term debt at March 31, 2017 and December 31, 2016 consisted of the following: March 31, December 31, $545.0 million Senior Secured Term Loan B (“Senior Secured Term Loan”) bearing interest at the greater of 0.75% or 1 month LIBOR (0.98% at March 31, 2017) plus an applicable margin of 4.25% at March 31, 2017, expiring October 19, 2022, net of debt issuance costs of $18.2 million at March 31, 2017 and $19.0 million at December 31, 2016. $ 523,884 $ 524,539 $143.0 million Senior Secured Revolver (“Senior Secured Revolver”) bearing interest at LIBOR (0.98% at March 31, 2017) plus an applicable margin of 3.50% at March 31, 2017, expiring October 19, 2020, net of debt issuance costs of $2.5 million at March 31, 2017 and $2.7 million at December 31, 2016. 38,021 25,298 $250.0 million Senior Notes (“Senior Notes”)bearing interest at 10.25%, maturing on November 1, 2020, net of debt issuance costs of $4.7 million at March 31, 2017 and $4.9 million at December 31, 2016. 245,340 245,077 French Safeguard Obligations (Autocam) 363 358 Brazilian lines of credit and equipment notes (Autocam) 489 573 Chinese line of credit (Autocam) 2,106 2,619 Total debt 810,203 798,464 Less current maturities of long-term debt 10,753 12,751 Long-term debt, excluding current maturities of long-term debt $ 799,450 $ 785,713 See subsequent event footnote related to amending the Senior Secured Term Loan for the Incremental Term Loan and the redemption of the Senior Notes. As part of Autocam Corporation (“Autocam”), we assumed certain foreign credit facilities. These facilities relate to local borrowings in France, Brazil and China. These facilities are with financial institutions in the countries in which foreign plants operate and are used to fund working capital and equipment purchases in those countries. The following paragraphs describe these foreign credit facilities. 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 10-year The Brazilian 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 9.1%. The Chinese line of credit is a working capital line of credit with a Chinese bank bearing an annual interest rate of approximately 4.6%. |
Goodwill, Net
Goodwill, Net | 3 Months Ended |
Mar. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill, Net | Note 6. Goodwill, Net The changes in the carrying amount of goodwill, net, for the three months ended March 31, 2017 are as follows: Precision Autocam Precision Total Balance as of December 31, 2016 $ 8,909 $ 70,717 $ 370,685 $ 450,311 Currency impacts 88 104 944 1,136 Balance as of March 31, 2017 $ 8,997 $ 70,821 $ 371,629 $ 451,447 The goodwill balances are tested for impairment on an annual basis during the fourth quarter and more often if a triggering event occurs. As of March 31, 2017, there were no indications of impairment at the reporting units with goodwill balances. |
Intangible Assets, Net
Intangible Assets, Net | 3 Months Ended |
Mar. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets, Net | Note 7. Intangible Assets, Net The changes in the carrying amount of intangible assets, net, for the three months ended March 31, 2017 are as follows: Precision Autocam Components Precision Total Balance as of December 31, 2016 $ 1,718 $ 42,928 $ 211,335 $ 255,981 Amortization (52 ) (874 ) (4,966 ) (5,892 ) Currency impacts 16 7 — 23 Balance as of March 31, 2017 $ 1,682 $ 42,061 $ 206,369 $ 250,112 |
Shared-Based Compensation
Shared-Based Compensation | 3 Months Ended |
Mar. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Shared-Based Compensation | Note 8. Shared-Based Compensation The share-based compensation expense during the three months ended March 31, 2017 and 2016 consisted of the following: Three Months Ended 2017 2016 Stock options $ 381 $ 202 Restricted stock 460 648 Performance share units 311 151 Share-based compensation $ 1,152 $ 1,001 Stock Options During the three months ended March 31, 2017, we granted 125,700 option awards to officers and certain other key employees. The weighted average grant date fair value of options granted during the three months ended March 31, 2017, was $11.84. 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 weighted average assumptions relevant to determining the fair value of the 2017 stock option grants are below: 2017 Term 6 years Risk free interest rate 2.03 % Dividend yield 1.16 % Expected volatility 56.56 % Expected forfeiture rate 3.00 % The following table provides a reconciliation of option activity for the three months ended March 31, 2017: Options Shares (000) Weighted- Weighted- Aggregate Outstanding at January 1, 2017 897 $ 12.22 Granted 126 24.20 Exercised (81 ) 11.45 Forfeited or expired (2 ) 13.29 Outstanding at March 31, 2017 940 $ 13.88 6.5 $ 10,643 (1) Exercisable at March 31, 2017 694 $ 12.11 5.4 $ 9,081 (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 March 31, 2017. Restricted Stock During the three months ended March 31, 2017, we granted 83,135 restricted stock awards to non-executive pro-rata non-executive Performance Share Units During the three months ended March 31, 2017, we granted 98,618 restricted stock awards to officers and certain other key employees. The performance share units granted will be satisfied in the form of shares of common stock during 2020 if certain performance and/or market conditions are met. We are recognizing the compensation expense over the three-year period in which the performance and market conditions are measured. The fair value of the performance share units issued was determined by using the grant date closing price of our common stock for the units with a performance condition, or $24.20, and a Monte Carlo valuation model for the units that have a market condition, or $29.84. |
Provision for Income Taxes
Provision for Income Taxes | 3 Months Ended |
Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Provision for Income Taxes | Note 9. Provision for Income Taxes Our effective tax rate for the three-month period ended March 31, 2017 was 29% as compared to 21% for the three-month period ended March 31, 2016. Our effective tax rate for 2017 and 2016 differs from the U.S. federal statutory rate of 34% due primarily to our earnings outside the United States that are indefinitely reinvested and taxed at rates lower than the U.S. federal statutory rate. Management believes that it is reasonably possible that the amount of unrecognized income tax benefits and interest may decrease during the next 12 months by approximately $0.6 million related to the expiration of the statutes of limitations, of which $0.5 million would reduce income tax expense. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 10. 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 process. Autocam Brazil filed an administrative defense with the Brazilian tax authority arguing, among other matters, that it should qualify for an 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 we plan to defend our interests in this matter vigorously. While we believe a loss is not probable, we estimate the range of possible losses related to this assessment is from $0 to $6.0 million. No amount was accrued at March 31, 2017 for this matter. There was no material change in the status of this matter from December 31, 2016 to March 31, 2017. 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 relating to our acquisition of Autocam. Management believes the indemnification would include amounts owed for the tax, interest and penalties related to this matter. All Other Legal Matters 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 | 3 Months Ended |
Mar. 31, 2017 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investment in Non-Consolidated Joint Venture | Note 11. Investment in Non-Consolidated As part of the Autocam acquisition, we own a 49% investment in a joint venture with an unrelated entity called Wuxi Weifu Autocam Precision Machinery Company, Ltd. (the “JV”), a Chinese company located in Wuxi, China. The JV is jointly controlled and managed, and is being accounted for under the equity method. Below are the components of our JV investment balance and activity for the period ending March 31, 2017: Balance as of December 31, 2016 $ 40,694 Our share of cumulative earnings 1,807 Accretion of basis difference from purchase accounting (114 ) Balance as of March 31, 2017 $ 42,387 The following table summarizes balance sheet information for the JV: March 31, December 31, Current assets $ 37,441 $ 31,295 Non-current 23,463 22,522 Total assets $ 60,904 $ 53,817 Current liabilities $ 15,853 $ 13,549 Total liabilities $ 15,853 $ 13,549 We had sales to the JV of approximately $0.1 million during the three months ended March 31, 2017. Amounts due to us from the JV were $0.1 million as of March 31, 2017. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 12. Fair Value Measurements We present fair value measurements and disclosures applicable to both our financial and nonfinancial assets and liabilities that are measured and reported on a fair value basis. Fair value is an exit price representing the expected amount we would receive to sell an asset or pay to transfer a liability in an orderly transaction with market participants at the measurement date. We have followed consistent methods and assumptions to estimate the fair values as more fully described in the 2016 Annual Report. Our financial instruments that are subject to fair value disclosure consist of cash and cash equivalents, accounts receivable, accounts payable, derivatives and long-term debt. At March 31, 2017, the carrying values of all of these financial instruments, except the long-term debt with fixed interest rates, approximated fair value. The fair value of floating-rate debt approximates the carrying amount because the interest rates paid are based on short-term maturities. The fair value of our fixed-rate long-term debt is estimated based on the Bloomberg algorithm, which takes into account similar sized and industry debt (a Level 2 category fair value measurement). As of March 31, 2017, the fair value of our fixed-rate debt was $250.1 million, and $245.4 net of debt issuance costs. Fair value principles prioritize valuation inputs across three broad levels. Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument. Level 3 inputs are unobservable inputs based on the assumptions used to measure assets and liabilities at fair value. An asset or liability’s classification within the various levels is determined based on the lowest level input that is significant to the fair value measurement. Recurring Fair Value Measurements The following table summarizes the assets and liabilities measured at fair value on a recurring basis for our interest rate swap derivative financial instrument: Fair Value Measurements at March 31, 2017 Description March 31, Quoted Prices in Significant Other Significant Derivative asset - current $ 4 $ — $ 4 $ — Derivative asset - noncurrent 7 — 7 — Derivative liability - current (1,485 ) — (1,485 ) — Derivative liability - noncurrent (636 ) — (636 ) — $ (2,110 ) $ — $ (2,110 ) $ — Fair Value Measurements at December 31, 2016 Description December 31, Quoted Prices in Significant Other Significant Derivative asset - current $ 69 $ — $ 69 $ — Derivative asset - noncurrent 6 — 6 — Derivative liability - current (1,903 ) — (1,903 ) — Derivative liability - noncurrent (1,028 ) — (1,028 ) — $ (2,856 ) $ — $ (2,856 ) $ — 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. Our $150 million interest rate swap went into effect on December 29, 2015, at which time our interest rate was effectively 6.966%. The objective of the hedge was to eliminate the variability of cash flows in interest payments on the first $150 million of variable interest rate debt (the Term Loan B). The variable rate benchmark was the three month LIBOR rate for both the Term Loan B and the interest rate swap. The changes in cash flows of the interest rate swap were expected to exactly offset the changes in cash flows of the Term Loan B. The hedged risk was the interest rate risk exposure to changes in the interest payments, attributable to changes in the benchmark three month LIBOR interest rates (subject to a 1.0% LIBOR index floor) from December 29, 2015 through December 31, 2018. As amended, the LIBOR floor index was lowered to 0.75% on September 30, 2016, and our intent regarding future interest rate resets changed. Three-month LIBOR was above the floor, and it was more economical to use one month LIBOR. Therefore, our intentions called into question the probability of the amounts deferred in accumulated other comprehensive income (“AOCI”) as the forecasted transactions would not be probable. As a result, we chose to discontinue hedge accounting, reclassified all amounts in AOCI to earnings, and began to account for the interest rate swap on a mark-to-market mark-to-market The inputs for determining fair value of the interest rate swap are classified as Level 2 inputs. 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 Consolidated Balance Sheet included within other current assets and other non-current non-current As of March 31, 2017, we reported no gains or losses in AOCI related to the interest rate swaps. Additionally, during 2016 when the interest rate swap was accounted for in accordance with hedge accounting, the periodic settlements and related reclassification of other comprehensive income was $1.4 million of net hedging losses on the interest rate swap in the interest expense line on the Consolidated Statements of Operations. We recognized $0.5 million of interest rate swap settlements for the first quarter of 2017 in Derivative losses on change in interest rate swap fair value line on the Consolidated Statement of Operations. If there are no changes in the interest rates for the next twelve months, we expect $1.5 million in cash payments related to the interest rates swap. See the following “Derivatives’ Hedging Relationships” section of this Note for more information regarding the impact of the interest rate swaps on our Condensed Consolidated Financial Statements. Derivatives’ Hedging Relationships Amount recognized in Other Location of gain/(loss) reclassified from Pre-tax amount of gain/(loss) AOCI in Net Income March 31, December 31, Net Income (effective March 31, December 31, Derivatives’ Cash Flow Hedging Relationships 2017 2016 portion) 2017 2016 Forward starting interest rate swap contract $ — $ — Interest Expense $ — $ (1,393 ) $ — $ — $ — $ (1,393 ) As of March 31, 2017, we did not own derivative instruments that were classified as fair value hedges or trading securities. In addition, as of March 31, 2017, we did not own derivative instruments containing credit risk contingencies. |
Restructuring and Integration
Restructuring and Integration | 3 Months Ended |
Mar. 31, 2017 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Integration | Note 13. Restructuring and Integration Restructuring and integration costs totaling $0.1 million and $2.5 million were recognized in the three months ended March 31, 2017 and 2016. Within the Precision Bearing Components Group, restructuring initiatives to optimize operations in the U.S., Italy, the Netherlands, Mexico and at segment headquarters resulted in a charge of $0.1 and $0.7 million for the three months ended March 31, 2017 and 2016, respectively. These charges consisted primarily of severance and other employee costs relating to personnel reductions. Within the Autocam Precision Components Group, certain restructuring programs, including the closure of one facility, the Wheeling Plant, resulted in a charge of $10 thousand and $1.5 million for the three months ended March 31, 2017 and 2016, respectively. Within the Precision Engineered Products Group, initiatives resulted in integration, site closure and employee costs of $0.3 million for the three months ended March 31, 2016. There were no charges in the three months ended March 31, 2017. The following table summarizes restructuring and integration activity related to actions incurred for the three months ended March 31, 2017 and 2016: Three Months Ended 2017 2016 Severance and other employee costs $ 140 $ 1,576 Site closure and other associated costs — 926 Integration and other associated costs — 36 Total $ 140 $ 2,538 Reserve Balance at Charges Paid in Reserve Severance and other employee costs $ 3,019 $ 140 $ (1,360 ) $ 1,799 Site closure and other associated costs 1,626 — (449 ) 1,177 Integration and other associated costs — — — — Total $ 4,645 $ 140 $ (1,809 ) $ 2,976 The total restructuring and impairment costs are still being identified at the various segments; therefore, we are not able to estimate the ultimate costs at this time. We will include in future filings updates to these activities along with a reconciliation of beginning and ending liabilities recorded. The amounts recorded for the three months ended March 31, 2017 for restructuring charges that have been incurred are primarily expected to be paid out during 2017. Some amounts related to foreign locations extend through 2021. |
Subsequent Event
Subsequent Event | 3 Months Ended |
Mar. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Event | Note 14. Subsequent Event In April 2017, we redeemed our Senior Notes for $281.6 million resulting in a loss on debt extinguishment of $36.3 million. The Senior Notes were redeemed with the proceeds of a new $300 million Incremental Term Loan (the “Incremental Term Loan”) that was added by amendment to our existing Senior Secured Term Loan. The interest rate on the Incremental Term Loan was priced at LIBOR plus 3.75%, and the Incremental Term Loan has a maturity date of April 3, 2021. |
Interim Financial Statements (P
Interim Financial Statements (Policies) | 3 Months Ended |
Mar. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Recently Issued Accounting Standards | Issuance of New Accounting Standards In May 2014, the FASB issued accounting guidance that provides a single, comprehensive revenue recognition model for all contracts with customers and supersedes most of the existing revenue recognition requirements. Under this guidance, an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In August 2015, the FASB issued accounting guidance that delayed the effective date of this standard by one year, making the guidance effective for fiscal years beginning after December 15, 2017. The new revenue guidance may impact the timing of recognition for certain Company’s customer incentives. Factors that will affect pre-and On February 25, 2016, the FASB issued ASU 2016-02, 2016-02”). 2016-02 2016-02 The FASB issued ASU 2016-15 2016-15”). During January 2017, the FASB issued ASU 2017-04 Except for per share data or as otherwise indicated, all dollar amounts presented in the tables in these Notes to the Condensed Consolidated Financial Statements are in thousands. |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Inventory Disclosure [Abstract] | |
Summary of Inventories | Inventories are comprised of the following: March 31, December 31, Raw materials $ 51,022 $ 49,205 Work in process 32,829 31,348 Finished goods 32,710 34,298 Inventories $ 116,561 $ 114,851 |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Earnings Per Share [Abstract] | |
Summary of Net Income Per Share | Three Months Ended 2017 2016 Net income (loss) $ 7,407 $ (1,299 ) Weighted average shares outstanding 27,303 26,869 Effect of dilutive stock options 331 — Diluted shares outstanding 27,634 26,869 Basic net income (loss) per share $ 0.27 $ (0.05 ) Diluted net income (loss) per share $ 0.27 $ (0.05 ) |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Segment Reporting [Abstract] | |
Segment Information | Precision Autocam Precision Corporate and Total Three Months ended March 31, 2017 Revenues from external customers $ 68,759 $ 86,446 $ 71,109 $ — $ 226,314 Income (loss) from operations $ 8,402 $ 10,601 $ 10,914 $ (7,759 ) $ 22,158 Total assets $ 226,829 $ 428,512 $ 727,418 $ 8,284 $ 1,391,043 Three Months ended March 31, 2016 Revenues from external customers $ 64,745 $ 83,990 $ 63,491 $ — $ 212,226 Income (loss) from operations $ 6,326 $ 6,527 $ 5,421 $ (6,400 ) $ 11,874 Total assets $ 227,852 $ 426,741 $ 737,956 $ 3,068 $ 1,395,617 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Debt Disclosure [Abstract] | |
Summary of Long-Term Debt | Long-term debt at March 31, 2017 and December 31, 2016 consisted of the following: March 31, December 31, $545.0 million Senior Secured Term Loan B (“Senior Secured Term Loan”) bearing interest at the greater of 0.75% or 1 month LIBOR (0.98% at March 31, 2017) plus an applicable margin of 4.25% at March 31, 2017, expiring October 19, 2022, net of debt issuance costs of $18.2 million at March 31, 2017 and $19.0 million at December 31, 2016. $ 523,884 $ 524,539 $143.0 million Senior Secured Revolver (“Senior Secured Revolver”) bearing interest at LIBOR (0.98% at March 31, 2017) plus an applicable margin of 3.50% at March 31, 2017, expiring October 19, 2020, net of debt issuance costs of $2.5 million at March 31, 2017 and $2.7 million at December 31, 2016. 38,021 25,298 $250.0 million Senior Notes (“Senior Notes”)bearing interest at 10.25%, maturing on November 1, 2020, net of debt issuance costs of $4.7 million at March 31, 2017 and $4.9 million at December 31, 2016. 245,340 245,077 French Safeguard Obligations (Autocam) 363 358 Brazilian lines of credit and equipment notes (Autocam) 489 573 Chinese line of credit (Autocam) 2,106 2,619 Total debt 810,203 798,464 Less current maturities of long-term debt 10,753 12,751 Long-term debt, excluding current maturities of long-term debt $ 799,450 $ 785,713 |
Goodwill, Net (Tables)
Goodwill, Net (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in Carrying Amount of Goodwill | The changes in the carrying amount of goodwill, net, for the three months ended March 31, 2017 are as follows: Precision Autocam Precision Total Balance as of December 31, 2016 $ 8,909 $ 70,717 $ 370,685 $ 450,311 Currency impacts 88 104 944 1,136 Balance as of March 31, 2017 $ 8,997 $ 70,821 $ 371,629 $ 451,447 |
Intangible Assets, Net (Tables)
Intangible Assets, Net (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Changes in Carrying Amount of Intangible Assets, Net | The changes in the carrying amount of intangible assets, net, for the three months ended March 31, 2017 are as follows: Precision Autocam Components Precision Total Balance as of December 31, 2016 $ 1,718 $ 42,928 $ 211,335 $ 255,981 Amortization (52 ) (874 ) (4,966 ) (5,892 ) Currency impacts 16 7 — 23 Balance as of March 31, 2017 $ 1,682 $ 42,061 $ 206,369 $ 250,112 |
Shared-Based Compensation (Tabl
Shared-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Schedule of Share-Based Compensation Expense | The share-based compensation expense during the three months ended March 31, 2017 and 2016 consisted of the following: Three Months Ended 2017 2016 Stock options $ 381 $ 202 Restricted stock 460 648 Performance share units 311 151 Share-based compensation $ 1,152 $ 1,001 |
Reconciliation of Option Activity | The following table provides a reconciliation of option activity for the three months ended March 31, 2017: Options Shares (000) Weighted- Weighted- Aggregate Outstanding at January 1, 2017 897 $ 12.22 Granted 126 24.20 Exercised (81 ) 11.45 Forfeited or expired (2 ) 13.29 Outstanding at March 31, 2017 940 $ 13.88 6.5 $ 10,643 (1) Exercisable at March 31, 2017 694 $ 12.11 5.4 $ 9,081 (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 March 31, 2017. |
Stock Option [Member] | |
Weighted Average Assumptions Relevant to Determining the Fair Value at the Dates of Grant | the Black Scholes financial pricing model to estimate the fair value. The weighted average assumptions relevant to determining the fair value of the 2017 stock option grants are below: 2017 Term 6 years Risk free interest rate 2.03 % Dividend yield 1.16 % Expected volatility 56.56 % Expected forfeiture rate 3.00 % |
Investment in Non-Consolidate28
Investment in Non-Consolidated Joint Venture (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Components of Joint Venture Investment | Below are the components of our JV investment balance and activity for the period ending March 31, 2017: Balance as of December 31, 2016 $ 40,694 Our share of cumulative earnings 1,807 Accretion of basis difference from purchase accounting (114 ) Balance as of March 31, 2017 $ 42,387 |
Summarized Balance Sheet Information for Joint Venture | The following table summarizes balance sheet information for the JV: March 31, December 31, Current assets $ 37,441 $ 31,295 Non-current 23,463 22,522 Total assets $ 60,904 $ 53,817 Current liabilities $ 15,853 $ 13,549 Total liabilities $ 15,853 $ 13,549 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Effect of Financial Assets and Liabilities Valued on Recurring Basis | The following table summarizes the assets and liabilities measured at fair value on a recurring basis for our interest rate swap derivative financial instrument: Fair Value Measurements at March 31, 2017 Description March 31, Quoted Prices in Significant Other Significant Derivative asset - current $ 4 $ — $ 4 $ — Derivative asset - noncurrent 7 — 7 — Derivative liability - current (1,485 ) — (1,485 ) — Derivative liability - noncurrent (636 ) — (636 ) — $ (2,110 ) $ — $ (2,110 ) $ — Fair Value Measurements at December 31, 2016 Description December 31, Quoted Prices in Significant Other Significant Derivative asset - current $ 69 $ — $ 69 $ — Derivative asset - noncurrent 6 — 6 — Derivative liability - current (1,903 ) — (1,903 ) — Derivative liability - noncurrent (1,028 ) — (1,028 ) — $ (2,856 ) $ — $ (2,856 ) $ — |
Effect of Derivatives' Hedging Relationships | Amount recognized in Other Location of gain/(loss) reclassified from Pre-tax amount of gain/(loss) AOCI in Net Income March 31, December 31, Net Income (effective March 31, December 31, Derivatives’ Cash Flow Hedging Relationships 2017 2016 portion) 2017 2016 Forward starting interest rate swap contract $ — $ — Interest Expense $ — $ (1,393 ) $ — $ — $ — $ (1,393 ) |
Restructuring and Integration (
Restructuring and Integration (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Wheeling Plant [Member] | |
Summary of Restructuring and Integration Charges | The following table summarizes restructuring and integration activity related to actions incurred for the three months ended March 31, 2017 and 2016: Three Months Ended 2017 2016 Severance and other employee costs $ 140 $ 1,576 Site closure and other associated costs — 926 Integration and other associated costs — 36 Total $ 140 $ 2,538 Reserve Balance at Charges Paid in Reserve Severance and other employee costs $ 3,019 $ 140 $ (1,360 ) $ 1,799 Site closure and other associated costs 1,626 — (449 ) 1,177 Integration and other associated costs — — — — Total $ 4,645 $ 140 $ (1,809 ) $ 2,976 |
Interim Financial Statements -
Interim Financial Statements - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2017SegmentManufacturingPlants | |
Quarterly Financial Information Disclosure [Abstract] | |
Number of manufacturing plants | ManufacturingPlants | 40 |
Number of reportable segments | Segment | 3 |
Inventories - Summary of Invent
Inventories - Summary of Inventories (Detail) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 51,022 | $ 49,205 |
Work in process | 32,829 | 31,348 |
Finished goods | 32,710 | 34,298 |
Inventories | $ 116,561 | $ 114,851 |
Inventories - Additional Inform
Inventories - Additional Information (Detail) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Inventory Disclosure [Abstract] | ||
Inventory on consignment at customers' location | $ 4.4 | $ 5 |
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 | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Earnings Per Share [Abstract] | ||
Net income (Loss) | $ 7,407 | $ (1,299) |
Weighted average shares outstanding | 27,303 | 26,869 |
Effect of dilutive stock options | 331 | |
Diluted shares outstanding | 27,634 | 26,869 |
Basic net income (loss) per share | $ 0.27 | $ (0.05) |
Diluted net income (loss) per share | $ 0.27 | $ (0.05) |
Net Income Per Share - Addition
Net Income Per Share - Additional Information (Detail) - shares shares in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Stock Option [Member] | ||
Net Income Per Share [Line Items] | ||
Anti-dilutive securities excluded from the calculation of diluted earnings per share | 0.6 | 0.8 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2017Segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 3 |
Segment Information - Segment I
Segment Information - Segment Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||
Revenues from external customers | $ 226,314 | $ 212,226 | |
Income (loss) from operations | 22,158 | 11,874 | |
Total assets | 1,391,043 | 1,395,617 | $ 1,360,386 |
Precision Bearing Components Group [Member] | Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues from external customers | 68,759 | 64,745 | |
Income (loss) from operations | 8,402 | 6,326 | |
Total assets | 226,829 | 227,852 | |
Autocam Precision Components Group [Member] | Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues from external customers | 86,446 | 83,990 | |
Income (loss) from operations | 10,601 | 6,527 | |
Total assets | 428,512 | 426,741 | |
Precision Engineered Products Group [Member] | Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues from external customers | 71,109 | 63,491 | |
Income (loss) from operations | 10,914 | 5,421 | |
Total assets | 727,418 | 737,956 | |
Corporate and Consolidations [Member] | |||
Segment Reporting Information [Line Items] | |||
Income (loss) from operations | (7,759) | (6,400) | |
Total assets | $ 8,284 | $ 3,068 |
Long Term Debt - Summary of Lon
Long Term Debt - Summary of Long-Term Debt (Detail) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||
Total debt | $ 810,203 | $ 798,464 |
Less current maturities of long-term debt | 10,753 | 12,751 |
Long-term debt, excluding current maturities of long-term debt | 799,450 | 785,713 |
Senior Notes Due 2020 [Member] | ||
Debt Instrument [Line Items] | ||
Senior debt | 245,340 | 245,077 |
French Safeguard [Member] | ||
Debt Instrument [Line Items] | ||
French Safeguard Obligations | 363 | 358 |
Brazilian [Member] | ||
Debt Instrument [Line Items] | ||
Line of credit | 489 | 573 |
Chinese [Member] | ||
Debt Instrument [Line Items] | ||
Line of credit | 2,106 | 2,619 |
Senior Secured Term Loan B [Member] | ||
Debt Instrument [Line Items] | ||
Senior debt | 523,884 | 524,539 |
Senior Secured Revolving Facility [Member] | ||
Debt Instrument [Line Items] | ||
Line of credit | $ 38,021 | $ 25,298 |
Long Term Debt - Summary of L39
Long Term Debt - Summary of Long-Term Debt (Parenthetical) (Detail) - USD ($) | 3 Months Ended | |
Mar. 31, 2017 | Dec. 31, 2016 | |
Senior Notes Due 2020 [Member] | ||
Debt Instrument [Line Items] | ||
Borrowings | $ 250,000,000 | |
Interest rate | 10.25% | |
Debt maturity date | Nov. 1, 2020 | |
Debt issuance costs | $ 4,700,000 | $ 4,900,000 |
Senior Secured Term Loan B [Member] | ||
Debt Instrument [Line Items] | ||
Borrowings | $ 545,000,000 | |
Interest rate | 0.98% | |
Applicable margin | 4.25% | |
Debt issuance costs | $ 18,200,000 | 19,000,000 |
LIBOR Period | 1 month | |
Debt maturity date | Oct. 19, 2022 | |
Senior Secured Term Loan B [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate | 0.75% | |
Senior Secured Term Loan B [Member] | Minimum [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate | 0.75% | |
Senior Secured Revolving Facility [Member] | ||
Debt Instrument [Line Items] | ||
Debt issuance costs | $ 2,500,000 | $ 2,700,000 |
Borrowings | $ 143,000,000 | |
Debt maturity date | Oct. 19, 2020 | |
Senior Secured Revolving Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate | 0.98% | |
Applicable margin | 3.50% |
Long Term Debt - Additional Inf
Long Term Debt - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Dec. 31, 2016 | |
French Safeguard [Member] | ||
Line of Credit Facility [Line Items] | ||
Interest rate | 0.00% | |
French Safeguard Obligations | $ 363 | $ 358 |
Current maturities of French Safeguard obligations | 100 | |
Noncurrent maturities of French Safeguard obligations | $ 300 | |
Chinese [Member] | ||
Line of Credit Facility [Line Items] | ||
Lines of credit annual interest rate | 4.60% | |
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 annual interest rate | 2.50% | |
Maximum [Member] | Brazilian [Member] | ||
Line of Credit Facility [Line Items] | ||
Lines of credit annual interest rate | 9.10% |
Goodwill, Net - Changes in Carr
Goodwill, Net - Changes in Carrying Amount of Goodwill (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2017USD ($) | |
Goodwill [Line Items] | |
Beginning Balance | $ 450,311 |
Currency impacts | 1,136 |
Ending Balance | 451,447 |
Precision Bearing Components Group [Member] | |
Goodwill [Line Items] | |
Beginning Balance | 8,909 |
Currency impacts | 88 |
Ending Balance | 8,997 |
Autocam Precision Components Group [Member] | |
Goodwill [Line Items] | |
Beginning Balance | 70,717 |
Currency impacts | 104 |
Ending Balance | 70,821 |
Precision Engineered Products Group [Member] | |
Goodwill [Line Items] | |
Beginning Balance | 370,685 |
Currency impacts | 944 |
Ending Balance | $ 371,629 |
Goodwill, Net - Additional Info
Goodwill, Net - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2017USD ($) | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Impairment of goodwill | $ 0 |
Intangible Assets, Net - Summar
Intangible Assets, Net - Summary of Changes in Carrying Amount of Intangible Assets, Net (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2017USD ($) | |
Finite-Lived Intangible Assets [Line Items] | |
Beginning balance | $ 255,981 |
Amortization | (5,892) |
Currency impacts | 23 |
Ending balance | 250,112 |
Precision Bearing Components Group [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Beginning balance | 1,718 |
Amortization | (52) |
Currency impacts | 16 |
Ending balance | 1,682 |
Autocam Precision Components Group [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Beginning balance | 42,928 |
Amortization | (874) |
Currency impacts | 7 |
Ending balance | 42,061 |
Precision Engineered Products Group [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Beginning balance | 211,335 |
Amortization | (4,966) |
Ending balance | $ 206,369 |
Shared-Based Compensation - Sch
Shared-Based Compensation - Schedule of Share-Based Compensation Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Performance share units | $ 1,152 | $ 1,001 |
Stock Option [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Performance share units | 381 | 202 |
Restricted Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted stock | 460 | 648 |
Performance Based Stock Units [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Performance share units | $ 311 | $ 151 |
Shared-Based Compensation - Add
Shared-Based Compensation - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2017$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of options granted | shares | 126,000 |
Weighted average grant date fair value of the options granted | $ 11.84 |
Weighted-Average Exercise Price, Granted | $ 24.20 |
Model used to derive fair value | Monte Carlo valuation model |
Performance Condition [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Weighted-Average Exercise Price, Granted | $ 24.20 |
Monte Carlo Valuation Model [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Weighted-Average Exercise Price, Granted | $ 29.84 |
Performance Based Stock Units [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Compensation expense period | 3 years |
Restricted Stock [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock units granted | shares | 83,135 |
Fair value assumptions, exercise price | $ 24.20 |
Non-executive Directors [Member] | Restricted Stock [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period of stock issue | 1 year |
Officers and Key Employees [Member] | Restricted Stock [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock units granted | shares | 98,618 |
Vesting period of stock issue | 3 years |
Shared-Based Compensation - Wei
Shared-Based Compensation - Weighted Average Assumptions Relevant to Determining the Fair Value at the Dates of Grant (Detail) - Stock Option [Member] | 3 Months Ended |
Mar. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Term | 6 years |
Risk free interest rate | 2.03% |
Dividend yield | 1.16% |
Expected volatility | 56.56% |
Expected forfeiture rate | 3.00% |
Shared-Based Compensation - Rec
Shared-Based Compensation - Reconciliation of Option Activity (Detail) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended |
Mar. 31, 2017USD ($)$ / sharesshares | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Number of options, Outstanding, Beginning Balance | shares | 897 |
Number of Options, Granted | shares | 126 |
Number of Options, Exercised | shares | (81) |
Number of Options, Forfeited or expired | shares | (2) |
Number of Options, Outstanding, Ending Balance | shares | 940 |
Number of Options, Options Exercisable | shares | 694 |
Weighted-Average Exercise Price, Outstanding, Beginning Balance | $ / shares | $ 12.22 |
Weighted-Average Exercise Price, Granted | $ / shares | 24.20 |
Weighted-Average Exercise Price, Exercised | $ / shares | 11.45 |
Weighted-Average Exercise Price, Forfeited or expired | $ / shares | 13.29 |
Weighted-Average Exercise Price, Outstanding, Ending Balance | $ / shares | 13.88 |
Weighted-Average Exercise Price, Options exercisable | $ / shares | $ 12.11 |
Weighted-Average Remaining Contractual Term, Outstanding | 6 years 6 months |
Weighted- Average Remaining Contractual Term, Options exercisable | 5 years 4 months 24 days |
Aggregate Intrinsic Value, Outstanding | $ | $ 10,643 |
Aggregate Intrinsic Value, Options exercisable | $ | $ 9,081 |
Provision for Income Taxes - Ad
Provision for Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Income Tax Disclosure [Abstract] | ||
Effective tax rate on non deductible expense | 29.00% | 21.00% |
U.S. federal statutory rate | 34.00% | 34.00% |
Unrecognized tax benefits | $ 0.6 | |
Reduction in income tax expense | $ 0.5 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) | Mar. 31, 2017USD ($) |
Contingencies And Commitments [Line Items] | |
Amount accrued for estimation of loss | $ 0 |
Minimum [Member] | |
Contingencies And Commitments [Line Items] | |
Possible loss estimated | 0 |
Maximum [Member] | |
Contingencies And Commitments [Line Items] | |
Possible loss estimated | $ 6,000,000 |
Investment in Non-Consolidate50
Investment in Non-Consolidated Joint Venture - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Schedule of Equity Method Investments [Line Items] | ||
Net sales | $ 226,314 | $ 212,226 |
Autocam [Member] | Joint Venture [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Net sales | 100 | |
Amount due from joint venture | $ 100 | |
Wuxi Weifu Autocam Precision Machinery Company, Ltd. [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Investment in joint venture | 49.00% |
Investment in Non-Consolidate51
Investment in Non-Consolidated Joint Venture - Components of Joint Venture Investment (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Schedule of Equity Method Investments [Line Items] | ||
Beginning Balance | $ 40,694 | |
Our share of cumulative earnings | 1,693 | $ 1,400 |
Ending Balance | 42,387 | |
Joint Venture [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Beginning Balance | 40,694 | |
Our share of cumulative earnings | 1,807 | |
Accretion of basis difference from purchase accounting | (114) | |
Ending Balance | $ 42,387 |
Investment in Non-Consolidate52
Investment in Non-Consolidated Joint Venture - Summarized Balance Sheet Information for Joint Venture (Detail) - Joint Venture [Member] - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Schedule of Equity Method Investments [Line Items] | ||
Current assets | $ 37,441 | $ 31,295 |
Non-current assets | 23,463 | 22,522 |
Total assets | 60,904 | 53,817 |
Current liabilities | 15,853 | 13,549 |
Total liabilities | $ 15,853 | $ 13,549 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
Derivatives, Fair Value [Line Items] | ||
Fair value of fixed-rate debt | $ 250,100,000 | |
Fair value of fixed-rate debt, net of debt issuance costs | 245,400,000 | |
Amount of interest rate swap | $ 150,000,000 | |
Description of term of interest rate swap | Our $150 million interest rate swap went into effect on December 29, 2015, at which time our interest rate was effectively 6.966%. | |
Locked interest rate | 6.966% | |
Derivative maturity date | Dec. 31, 2018 | |
Derivative inception date | Dec. 29, 2015 | |
Derivative in Net liability position | $ 2,100,000 | |
Gain or loss related to interest rate swaps | 0 | $ 0 |
Interest rate swap settlements in derivative losses | 500,000 | |
Amount to be reclassified from accumulated and other comprehensive income in next twelve months | 0 | |
Cash payments related to the interest rates swap | 1,500,000 | |
Accumulated Other Comprehensive Income (loss) [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Gain or loss related to interest rate swaps | $ 0 | |
Minimum [Member] | Senior Secured Term Loan B [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Interest rate | 0.75% | |
Minimum [Member] | Senior Secured Term Loan B [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Interest rate | 0.75% | |
Maximum [Member] | Senior Secured Term Loan B [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Interest rate | 1.00% |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Assets and Liabilities Valued on Recurring Basis (Detail) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Derivatives, Fair Value [Line Items] | ||
Derivative asset - current | $ 4 | $ 69 |
Derivative asset - noncurrent | 7 | 6 |
Derivative liability - current | (1,485) | (1,903) |
Derivative liability - noncurrent | (636) | (1,028) |
Derivative assets and liabilities, Total | (2,110) | (2,856) |
Significant Other Observable Inputs (Level 2) [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset - current | 4 | 69 |
Derivative asset - noncurrent | 7 | 6 |
Derivative liability - current | (1,485) | (1,903) |
Derivative liability - noncurrent | (636) | (1,028) |
Derivative assets and liabilities, Total | $ (2,110) | $ (2,856) |
Fair Value Measurements - Deriv
Fair Value Measurements - Derivatives' Cash Flow Hedging Relationships (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount recognized in Other Comprehensive Income (effective portion) | $ 0 | $ 0 |
Pre-tax amount of gain/(loss) reclassified from AOCI in Net Income (effective portion) | (1,393) | |
Interest Expense [Member] | Forward Starting Interest Rate Swap Contract [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount recognized in Other Comprehensive Income (effective portion) | $ 0 | 0 |
Pre-tax amount of gain/(loss) reclassified from AOCI in Net Income (effective portion) | $ (1,393) |
Restructuring and Integration -
Restructuring and Integration - Additional Information (Detail) - USD ($) | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and integration cost | $ 100,000 | $ 2,500,000 |
Precision Engineered Products Group [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and integration cost | 0 | 300,000 |
Precision Bearing Components Group [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and integration cost | 100,000 | 700,000 |
Wheeling Plant [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and integration cost | 140,000 | |
Wheeling Plant [Member] | Autocam Precision Components Group [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and integration cost | $ 10,000 | $ 1,500,000 |
Restructuring and Integration57
Restructuring and Integration - Summary of Restructuring and Integration Charges (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Restructuring Cost and Reserve [Line Items] | ||
Total | $ 140 | $ 2,538 |
Charges | 100 | 2,500 |
Wheeling Plant [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Severance and other employee costs | 140 | 1,576 |
Site closure and other associated costs | 926 | |
Integration and other associated costs | 36 | |
Total | 140 | $ 2,538 |
Reserve beginning balance | 4,645 | |
Charges | 140 | |
Paid in | (1,809) | |
Reserve ending balance | 2,976 | |
Wheeling Plant [Member] | Severance and Other Employee Costs [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Reserve beginning balance | 3,019 | |
Charges | 140 | |
Paid in | (1,360) | |
Reserve ending balance | 1,799 | |
Wheeling Plant [Member] | Site Closure and Other Associated Costs [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Reserve beginning balance | 1,626 | |
Paid in | (449) | |
Reserve ending balance | $ 1,177 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - Subsequent Event [Member] $ in Millions | 1 Months Ended |
Apr. 30, 2017USD ($) | |
Senior Notes [Member] | |
Subsequent Event [Line Items] | |
Outstanding amount of notes redeemed | $ 281.6 |
Loss on debt extinguishment | 36.3 |
Incremental Term Loan [Member] | London Interbank Offered Rate (LIBOR) [Member] | Amended Senior Secured Term Loan [Member] | |
Subsequent Event [Line Items] | |
Debt instrument face amount | $ 300 |
Basis spread on variable rate | 3.75% |
Debt maturity date | Apr. 3, 2021 |